Document:

Exhibit

Exhibit 10.1

Published CUSIP Number:    [____]
Term Loan CUSIP Number:    [____]
    
____________________________________________________________________________________________

$500,000,000

TERM LOAN CREDIT AGREEMENT

dated as of December 27, 2018,

by and among

ENSTAR GROUP LIMITED
as Borrower

KENMARE HOLDINGS LTD.
ENSTAR (US ASIA-PAC) HOLDINGS LIMITED
and
ENSTAR HOLDINGS (US) LLC
as Guarantors

the Lenders referred to herein

and

WELLS FARGO BANK, NATIONAL ASSOCIATION
as Administrative Agent

WELLS FARGO SECURITIES, LLC
NATIONAL AUSTRALIA BANK LIMITED
and
SUNTRUST ROBINSON HUMPHREY, INC.
as Joint Lead Arrangers and Joint Bookrunners

NATIONAL AUSTRALIA BANK LIMITED
and
SUNTRUST BANK
as Co-Syndication Agents

____________________________________________________________________________________________

TABLE OF CONTENTS
Page
	
			
	ARTICLE I
	DEFINITIONS
	1

	Section 1.1
	Definitions
	1

	Section 1.2
	Other Definitions and Provisions
	18

	Section 1.3
	Accounting Terms; Changes in GAAP
	19

	Section 1.4
	Rounding
	19

	Section 1.5
	References to Agreement and Laws
	19

	Section 1.6
	Times of Day
	19

	Section 1.7
	Rates
	19

	Section 1.8
	Divisions
	19

	ARTICLE II
	TERM LOAN FACILITY
	20

	Section 2.1
	Initial Term Loan
	20

	Section 2.2
	Procedure for Advance of Term Loans
	20

	Section 2.3
	Repayment of Term Loans
	20

	Section 2.4
	Prepayments of Term Loans
	20

	ARTICLE III
	GENERAL LOAN PROVISIONS
	20

	Section 3.1
	Interest
	20

	Section 3.2
	Notice and Manner of Conversion or Continuation of Term Loans
	21

	Section 3.3
	Fees
	22

	Section 3.4
	Manner of Payment
	22

	Section 3.5
	Evidence of Indebtedness
	22

	Section 3.6
	Sharing of Payments by Lenders
	22

	Section 3.7
	Changed Circumstances
	23

	Section 3.8
	Indemnity
	24

	Section 3.9
	Increased Costs
	24

	Section 3.10
	Taxes
	25

	Section 3.11
	Mitigation Obligations; Replacement of Lenders
	28

	Section 3.12
	Incremental Term Loan
	29

	Section 3.13
	Defaulting Lenders
	30

	ARTICLE IV
	CONDITIONS OF CLOSING AND BORROWING
	31

	Section 4.1
	Conditions to Closing and Initial Term Loan
	31

	Section 4.2
	Conditions to all Term Loans
	32

	ARTICLE V
	REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES
	33

	Section 5.1
	Existence, Qualification and Power
	33

	Section 5.2
	Authorization; No Contravention
	33

	Section 5.3
	Governmental Authorization; Other Consents
	33

	Section 5.4
	Execution and Delivery; Binding Effect
	33

	Section 5.5
	Financial Statements; No Material Adverse Effect
	33

	Section 5.6
	Litigation
	34

	Section 5.7
	No Material Adverse Effect; No Default
	34

	Section 5.8
	Property
	34

	Section 5.9
	Taxes
	34

i

	
			
	Section 5.10
	Disclosure
	34

	Section 5.11
	Compliance with Laws
	35

	Section 5.12
	ERISA Compliance
	35

	Section 5.13
	Environmental Matters
	36

	Section 5.14
	Margin Regulations
	36

	Section 5.15
	Net Worth
	36

	Section 5.16
	Investment Company Act
	36

	Section 5.17
	Center of Main Interests and Establishments
	36

	Section 5.18
	Sanctions; Anti-Corruption
	36

	Section 5.19
	Solvency
	36

	Section 5.20
	Group Structure Chart
	36

	Section 5.21
	Ownership
	36

	Section 5.22
	EEA Financial Institution
	37

	ARTICLE VI
	AFFIRMATIVE COVENANTS
	37

	Section 6.1
	Financial Statements
	37

	Section 6.2
	Certificates; Other Information
	37

	Section 6.3
	Notices
	38

	Section 6.4
	Preservation of Existence, Etc
	39

	Section 6.5
	Maintenance of Properties
	39

	Section 6.6
	Maintenance of Insurance
	39

	Section 6.7
	Payment of Obligations
	39

	Section 6.8
	Compliance with Laws
	39

	Section 6.9
	Environmental Matters
	39

	Section 6.10
	Books and Records
	39

	Section 6.11
	Inspection Rights
	39

	Section 6.12
	Use of Proceeds
	40

	Section 6.13
	Sanctions; Anti-Corruption Laws
	40

	Section 6.14
	Bermuda Solvency Coverage Ratio
	40

	Section 6.15
	Guarantors
	40

	ARTICLE VII
	NEGATIVE COVENANTS
	40

	Section 7.1
	Indebtedness
	40

	Section 7.2
	Liens
	41

	Section 7.3
	Fundamental Changes
	43

	Section 7.4
	Dispositions
	43

	Section 7.5
	Restricted Payments
	44

	Section 7.6
	Investments
	44

	Section 7.7
	Transactions with Affiliates
	45

	Section 7.8
	Certain Restrictive Agreements
	45

	Section 7.9
	Changes in Fiscal Periods
	46

	Section 7.10
	Changes in Nature of Business
	46

	Section 7.11
	Restriction on Use of Proceeds
	46

	Section 7.12
	Financial Covenants
	46

	Section 7.13
	Sanctions; Anti-Corruption; Use of Proceeds
	46

ii

	
			
	Section 7.14
	Bermuda Private Act
	47

	Section 7.15
	Share Capital
	47

	Section 7.16
	Amendments
	47

	Section 7.17
	Swap Contracts
	47

	ARTICLE VIII
	DEFAULT AND REMEDIES
	47

	Section 8.1
	Events of Default
	47

	Section 8.2
	Application of Payments
	49

	Section 8.3
	Rights and Remedies Cumulative; Non-Waiver; etc
	49

	ARTICLE IX
	THE ADMINISTRATIVE AGENT
	50

	Section 9.1
	Appointment and Authority
	50

	Section 9.2
	Rights as a Lender
	50

	Section 9.3
	Exculpatory Provisions
	50

	Section 9.4
	Reliance by the Administrative Agent
	51

	Section 9.5
	Delegation of Duties
	51

	Section 9.6
	Resignation of Administrative Agent
	51

	Section 9.7
	Non-Reliance on Administrative Agent and Other Lenders
	52

	Section 9.8
	No Other Duties, Etc
	52

	Section 9.9
	Administrative Agent May File Proofs of Claim
	52

	Section 9.10
	Certain ERISA Matters
	53

	ARTICLE X
	GUARANTY
	53

	Section 10.1
	Guaranty of the Obligations
	53

	Section 10.2
	Contribution by Guarantors
	54

	Section 10.3
	Payment by Guarantors
	54

	Section 10.4
	Liability of Guarantors Absolute
	54

	Section 10.5
	Waivers by Guarantors
	55

	Section 10.6
	Guarantors’ Rights of Subrogation, Contribution, etc
	55

	Section 10.7
	Subordination of Other Obligations
	55

	Section 10.8
	Continuing Guaranty
	55

	Section 10.9
	Authority of Loan Parties
	55

	Section 10.10
	Financial Condition of Loan Parties
	55

	Section 10.11
	Bankruptcy, etc
	57

	Section 10.12
	Instrument for the Payment of Money
	57

	Section 10.13
	General Limitation on Guarantee Obligations
	57

	ARTICLE XI
	MISCELLANEOUS
	57

	Section 11.1
	Notices
	57

	Section 11.2
	Amendments, Waivers and Consents
	60

	Section 11.3
	Expenses; Indemnity
	61

	Section 11.4
	Right of Setoff
	63

	Section 11.5
	Governing Law; Jurisdiction, Etc
	63

	Section 11.6
	Waiver of Jury Trial
	63

	Section 11.7
	Reversal of Payments
	64

	Section 11.8
	Injunctive Relief
	64

	Section 11.9
	Successors and Assigns; Participations
	64

iii

	
			
	Section 11.10
	Treatment of Certain Information; Confidentiality
	67

	Section 11.11
	Performance of Duties
	68

	Section 11.12
	All Powers Coupled with Interest
	68

	Section 11.13
	Survival
	68

	Section 11.14
	Titles and Captions
	68

	Section 11.15
	Severability of Provisions
	68

	Section 11.16
	Counterparts; Integration; Effectiveness; Electronic Execution
	68

	Section 11.17
	Term of Agreement
	68

	Section 11.18
	USA PATRIOT Act; Anti-Money Laundering Laws
	69

	Section 11.19
	Independent Effect of Covenants
	69

	Section 11.20
	No Advisory or Fiduciary Responsibility
	69

	Section 11.21
	Inconsistencies with Other Documents
	69

	Section 11.22
	Judgment Currency
	70

	Section 11.23
	Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	70

iv

	
			
	EXHIBITS
	 
	 

	Exhibit A
	-
	Form of Term Loan Note

	Exhibit B
	-
	Form of Notice of Borrowing

	Exhibit C
	-
	Form of Notice of Prepayment

	Exhibit D
	-
	Form of Notice of Conversion/Continuation

	Exhibit E
	-
	Form of Compliance Certificate

	Exhibit F
	-
	Form of Assignment and Assumption

	Exhibit G-1
	-
	Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Lenders)

	Exhibit G-2
	-
	Form of U.S. Tax Compliance Certificate (Non-Partnership Foreign Participants)

	Exhibit G-3
	-
	Form of U.S. Tax Compliance Certificate (Foreign Participant Partnerships)

	Exhibit G-4
	-
	Form of U.S. Tax Compliance Certificate (Foreign Lender Partnerships)

	Exhibit H
	-
	Form of Guarantor Joinder Agreement

	 

	SCHEDULES

	Schedule 1.1
	-
	Commitments 

	Schedule 7.1
	-
	Indebtedness

	Schedule 7.2
	-
	Liens

	Schedule 7.6
	-
	Investments

v

TERM LOAN CREDIT AGREEMENT, dated as of December 27, 2018, by and among ENSTAR GROUP LIMITED, an exempted company limited by shares and incorporated in Bermuda, as Borrower, KENMARE HOLDINGS LTD., an exempted company limited by shares and incorporated in Bermuda, ENSTAR (US ASIA-PAC) HOLDINGS LIMITED, a limited liability company incorporated in England and Wales, and ENSTAR HOLDINGS (US) LLC, a limited liability company formed in the State of Delaware, as Guarantors, the lenders who are party to this Agreement and the lenders who may become a party to this Agreement pursuant to the terms hereof, as Lenders, and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Administrative Agent for the Lenders.
STATEMENT OF PURPOSE
The Borrower has requested, and subject to the terms and conditions set forth in this Agreement, the Lenders have agreed to extend, a term loan facility to the Borrower.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, such parties hereby agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1    Definitions.  The following terms when used in this Agreement shall have the meanings assigned to them below:
 “Acquisition SPV” means a direct or indirect Subsidiary of the Borrower other than a Loan Party, established or maintained for the purpose of making Investments that are not prohibited hereunder provided it has no other Indebtedness other than Acquisition SPV Indebtedness and/or Indebtedness owed to a member of the Group.
“Acquisition SPV Indebtedness” means Indebtedness incurred by an Acquisition SPV where the provider of the Indebtedness has no recourse against any member of the Group, other than to that Acquisition SPV and their respective assets.
“Administrative Agency Fee Letter” means the fee letter dated December 5, 2018 between the Borrower, the Administrative Agent and Wells Fargo Securities, LLC.
“Administrative Agent” means Wells Fargo, in its capacity as Administrative Agent hereunder, and any successor thereto appointed pursuant to Section 9.6.
“Administrative Agent’s Office” means the office of the Administrative Agent specified in or determined in accordance with the provisions of Section 11.1(c).
“Administrative Questionnaire” means an administrative questionnaire in a form supplied by the Administrative Agent.
“Affiliate” means, with respect to a specified Person, another Person that directly or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified, in each case regardless of whether such other Person is existing as of the date hereof.
“Agent Parties” has the meaning specified in Section 11.1(e)(ii).
 “Agreement” means this Term Loan Credit Agreement.
“Applicable Law” means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of Governmental Authorities and all orders and decrees of all courts and arbitrators.
“Applicable Margin” means the corresponding percentages per annum determined by reference to the Credit Ratings applicable on such day as set forth below from one or both of S&P and Fitch:

1

	
				
	Pricing Level
	Credit Ratings
	Applicable Margin for LIBOR Loans
	Applicable Margin for Base Rate Loans

	1
	A- (or its equivalent) or higher 
	1.00%
	0.00%

	2
	BBB+ (or its equivalent)
	1.25%
	0.25%

	3
	BBB (or its equivalent)
	1.50%
	0.50%

	4
	BBB- (or its equivalent)
	1.75%
	0.75%

	5
	BB+ (or its equivalent) or lower or unrated
	2.00%
	1.00%

Initially, commencing on the Closing Date the Applicable Margin shall be determined based upon Pricing Level 3. Notwithstanding anything herein to the contrary,
(a)    if only one of S&P and Fitch shall have in effect a Credit Rating, then the Pricing Level shall be determined by reference to the available Credit Rating from such Credit Rating Agency;
(b)    if both S&P and Fitch shall have in effect a Credit Rating, and such Credit Ratings differ by one level, then the Pricing Level for the highest of the two Credit Ratings shall apply (with the Credit Rating for Pricing Level 1 being the highest and the Credit Rating for Pricing Level 5 being the lowest); and
(c)    if both S&P and Fitch shall have in effect a Credit Rating, and there is a split in Credit Ratings of such Credit Rating Agencies of more than one level, then the Pricing Level that is one level above the lower of the two Credit Ratings shall apply.
Each change in the Applicable Margin resulting from a publicly announced change in the Credit Rating after the Closing Date shall be effective during the period commencing on the date of the public announcement thereof and ending on the date immediately preceding the effective date of the next such change. If the rating system of any such Credit Rating Agency shall change, or if any such Credit Rating Agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of ratings from such Credit Rating Agencies or shall select a replacement Credit Rating Agency and, pending the effectiveness of any such amendment or replacement, for purposes of determining the Applicable Margin the Credit Rating of the affected Credit Rating Agency shall be deemed to the Credit Rating of such Credit Rating Agency as most recently in effect prior to such change or cessation.
 
“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender.
“Arrangers” means, collectively, National Australia Bank Limited, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC in their capacities as joint lead arrangers and joint bookrunners.
“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an Eligible Assignee (with the consent of any party whose consent is required by Section 11.9), and accepted by the Administrative Agent, in substantially the form of Exhibit F or any other form approved by the Administrative Agent.
“Attributable Indebtedness” means, as of any date of determination, (a) in respect of any Capitalized Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital lease.
“Audited Financial Statements” means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year ended December 31, 2017 and the related consolidated statements of income or operations, Shareholders' Equity and cash flows for such fiscal year of the Borrower and its Subsidiaries.

2

 “Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time that is described in the EU Bail-In Legislation Schedule.
“Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and hereafter in effect, or any successor statute.
 “Base Rate” means, at any time, the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus 0.50%, and (c) LIBOR for an Interest Period of one month plus 1.00%; each change in the Base Rate shall take effect simultaneously with the corresponding change or changes in the Prime Rate, the Federal Funds Rate or LIBOR (provided that clause (c) shall not be applicable during any period in which LIBOR is unavailable or unascertainable).

“Base Rate Loan” means any Term Loan bearing interest at a rate based upon the Base Rate as provided in Section 3.1(a).
 “Basel III” means:
(a)    the agreements on capital requirements, a leverage ratio and liquidity standards contained in "Basel III: A global regulatory framework for more resilient banks and banking systems", "Basel III: International framework for liquidity risk measurement, standards and monitoring" and "Guidance for national authorities operating the countercyclical capital buffer" published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated;
(b)     the rules for global systemically important banks contained in "Global systemically important banks: assessment methodology and the additional loss absorbency requirement - Rules text" published by the Basel Committee on Banking Supervision in November 2011, as amended, supplemented or restated; and
(c)    any further guidance or standards published by the Basel Committee on Banking Supervision relating to "Basel III".
“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“Beneficiary” means each Arranger, the Administrative Agent, each Lender and each other holder of an Obligation.
“Benefit Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA, (b) a “plan” as defined in and subject to Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section 3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit plan” or “plan”.
“Borrower” means Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda.
“Borrower Materials” has the meaning assigned thereto in Section 11.1(f).
“Bribery Act” has the meaning specified in Section 5.18(b).
“Business Day” means (a) for all purposes other than as set forth in clause (b) below, any day other than a Saturday, Sunday or legal holiday on which banks in New York, New York, London, England and Hamilton, Bermuda are open for the conduct of their commercial banking business, and (b) with respect to all notices and determinations in connection with, and payments of principal and interest on, any LIBOR Rate Loan, or any Base Rate Loan as to 

3

which the interest rate is determined by reference to LIBOR, any day that is a Business Day described in clause (a) and that is also a London Banking Day.
“Capitalized Lease” means each lease that has been or is required to be, in accordance with GAAP, recorded as a capitalized lease.
“Cash Equivalents” means:
(a)    direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States), in each case maturing within one year from the date of acquisition thereof;
(b)    investments in commercial paper maturing within 270 days from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from a Credit Rating Agency;
(c)    investments in certificates of deposit, banker’s acceptances and time deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any commercial bank organized under the laws of the United States or any state thereof that has a combined capital and surplus and undivided profits of not less than $500,000,000;

(d)    fully collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; and

(e)    money market funds that (i) comply with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act, (ii) are rated AAA and Aaa (or equivalent rating) by at least two Credit Rating Agencies and (iii) have portfolio assets of at least $5,000,000,000.

 “Change in Law” means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (ii) 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, European Union or foreign regulatory authorities, in each case pursuant to Basel III and/or CRD IV, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, implemented or issued.
“Change of Control” means an event or series of events by which: (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act, but excluding any employee benefit plan of such person or its Subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the right to acquire, whether such right is exercisable immediately or only after the passage of time (such right, an “option right”)), directly or indirectly, of more than 50% of the Equity Interests of the Borrower entitled to vote for members of the board of directors or equivalent governing body of the Borrower on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or (b) during any period of 12 consecutive months, a majority of the members of the board of directors or other equivalent governing body of the Borrower cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body.

4

“Closing Date” means the date of this Agreement.
“Code” means the Internal Revenue Code of 1986, and the rules and regulations promulgated thereunder.
“Commitment” means (a) as to any Lender, the obligation of such Lender to make a portion of the Initial Term Loan and/or Incremental Term Loans, as applicable, to the account of the Borrower hereunder on the Closing Date (in the case of the Initial Term Loan) or the applicable borrowing date (in the case of any Incremental Term Loan) in an aggregate principal amount not to exceed the amount set forth opposite such Lender’s name on the Register, as such amount may be increased, reduced or otherwise modified at any time or from time to time pursuant to the terms hereof and (b) as to all Lenders, the aggregate commitment of all Lenders to make such Term Loans.  The aggregate Commitment with respect to the Initial Term Loan of all Lenders on the Closing Date shall be $500,000,000.  The Term Loan Commitment of each Lender as of the Closing Date is set forth opposite the name of such Lender on Schedule 1.1.
“Commitment Letter” means that certain Commitment Letter dated as of December 5, 2018 between the Borrower, the Arrangers and certain Affiliates of the Arrangers.    
“Communications” has the meaning specified in Section 11.1(e)(ii).
“Compliance Certificate” means a certificate of the chief financial officer, chief accounting officer, vice president of finance, controller, the treasurer or assistant treasurer of the Borrower or an officer of the Borrower with similar role and responsibility as those identified above substantially in the form attached as Exhibit E.
“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.
“Consolidated Financial Indebtedness” means, at any time, the aggregate outstanding principal, capital or nominal amount (and any fixed or minimum premium payable on prepayment or redemption) of any Indebtedness of members of the Group, excluding (i) any such obligations to any other member of the Group; (ii) Indebtedness incurred pursuant to any letter of credit or its equivalent in the ordinary course of business, but only in each case to the extent such letter of credit or equivalent is undrawn; (iii) Contingent Capital Instruments to the extent that such instruments would not in aggregate exceed 10% of Total Capital; and (iv) Hybrid Capital to the extent that such Hybrid Capital (A) does not in aggregate exceed 15% of Total Capital and (B) does not mature or is not mandatorily redeemable or subject to any mandatory repurchase requirement at any time on or prior to the date which is six months after the Maturity Date.
“Consolidated Net Worth” means, as of any date of determination, the aggregate of the Shareholders' Equity of the Borrower.   
“Contingent Capital Instruments” means unconditional, committed capital instruments which are callable on demand, but excluding Hybrid Capital.
“Contractual Obligation” means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings analogous thereto.
“CRD IV” means: (a) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012; and (b) Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
“Credit Facility” means the term loan credit facility established pursuant to Article II.

5

“Credit Rating” means a rating as determined by a Credit Rating Agency of the Borrower’s non-credit-enhanced, senior unsecured long-term indebtedness.
“Credit Rating Agency” means an internationally recognized credit rating agency that evaluates the financial condition of issuers of debt instruments and then assigns a rating that reflects its assessment of the issuer’s ability to make debt payments.
“Debtor Relief Laws” means the Bankruptcy Code and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws in the United States or any other applicable jurisdiction from time to time in effect.
“Default” means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time, or both, would be an Event of Default.
“Defaulting Lender” means, subject to Section 3.13(b), any Lender that (a) has failed to (i) fund all or any portion of its Term Loans within two Business Days of the date such Term Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Term Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the FDIC or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 3.13(b)) upon delivery of written notice of such determination to the Borrower and each Lender.
“Disposition”, “Dispose” or “Disposed” means the sale, transfer, license, lease or other disposition of any property by any Person (including any sale and leaseback transaction and any issuance of Equity Interests by a Subsidiary of such Person), including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

“Disqualified Equity Interest” means any Equity Interest that, by its terms (or the terms of any security or other Equity Interests into which it is convertible or for which it is exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily redeemable (other than solely for Equity Interests that are not Disqualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Term Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) is redeemable at the option of the holder thereof, in whole or in part, (c) provides for mandatory scheduled payments of dividends in cash, or (d) is or becomes convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is ninety-one days after the Maturity Date; provided that if such Equity Interests are issued pursuant to a plan for the benefit of employees of a Loan Party or any Subsidiary or by any such plan to such employees, such Equity Interests shall not constitute Disqualified Equity Interests solely because they may be required to be repurchased 

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by the such Loan Party or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of such employee’s termination, death or disability.

“Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency of the United States.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent. 
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“Eligible Assignee” means any Person that meets the requirements to be an assignee under Section 11.9 (subject to such consents, if any, as may be required under Section 11.9).  
“Environmental Laws” means any and all federal, state, local, and foreign statutes, Laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions, including all common law, relating to pollution or the protection of health, safety or the environment or the release of any materials into the environment, including those related to Hazardous Materials, air emissions, discharges to waste or public systems and health and safety matters.
“Environmental Liability” means any liability or obligation, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), directly or indirectly, resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment, disposal or permitting or arranging for the disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.
“Equity Interests” means, as to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended and the rules and regulations promulgated thereunder.
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code or Section 302 of ERISA).
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) the failure by the Borrower or any ERISA Affiliate to meet all applicable requirements under the Pension Funding Rules or the filing of an application for the waiver of the minimum funding standards under the Pension Funding Rules; (c) the incurrence by the Borrower or any ERISA Affiliate of any liability pursuant to Section 4063 or 4064 of ERISA or a “substantial cessation of operations” with respect to a Pension Plan within the meaning of Section 4062(e) of ERISA (for which the exemption set forth in Section 4062(e)(3) of ERISA is not available); (d) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization or insolvent (within the meaning of Title IV of ERISA); (e) the filing of a notice of intent to terminate a Pension Plan under, or the treatment of a Pension Plan amendment as a termination under, Section 4041 of ERISA; (f) the institution by the PBGC of 

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proceedings to terminate a Pension Plan; (g) any event or condition that constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan; (h) the determination that any Pension Plan is in at-risk status (within the meaning of Section 430 of the Code or Section 303 of ERISA) or that a Multiemployer Plan is in endangered or critical status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (i) the imposition or incurrence of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate; (j) the engagement by the Borrower or any ERISA Affiliate in a transaction that could be subject to Section 4069 or Section 4212(c) of ERISA; (k) the imposition of a lien upon the Borrower or any ERISA Affiliate pursuant to Section 430(k) of the Code or Section 303(k) of ERISA; or (l) the making of an amendment to a Pension Plan that could result in the posting of bond or security under Section 436(f)(1) of the Code.

 “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor thereto), as in effect from time to time. 
“Eurodollar Reserve Percentage” means, for any day, the percentage which is in effect for such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement (including, without limitation, any basic, supplemental or emergency reserves) in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of the Federal Reserve System in New York City.
“Event of Default” has the meaning specified in ARTICLE VIII.
 “Exchange Act” means the Securities Exchange Act of 1934.
 “Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable Lending Office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, United States federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Term Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Term Loan or Commitment (other than pursuant to an assignment request by the Borrower under Section 3.11(b)) or (ii) such Lender changes its Lending Office, except in each case to the extent that, pursuant to Section 3.10, 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 Recipient’s failure to comply with Section 3.10(g) and (d) any United States federal withholding Taxes imposed under FATCA.
“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, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.
“FCA” means the United Kingdom Financial Conduct Authority and any predecessor or successor body or bodies.
“FCPA” has the meaning specified in Section 5.18(b).
“FDIC” means the Federal Deposit Insurance Corporation.
“Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that if such rate is not so published for any day which is a Business Day, the Federal Funds Rate for such day shall be the average of the quotation for such day on such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by the Administrative Agent.  Notwithstanding the foregoing, if the Federal Funds Rate shall be less than zero, such rate shall be deemed to be zero for purposes of this Agreement.

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“Federal Reserve Board” means the Board of Governors of the Federal Reserve System of the United States.
“Fee Letters” means (i) the Administrative Agency Fee Letter and (ii) the fee letters dated December 5, 2018 between the Borrower and each Arranger (other than Wells Fargo Securities, LLC).
“Financial Officer” means, as to any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person.
 “Fitch” means Fitch Ratings Inc.

“Foreign Lender” means a Lender that is resident or organized under the laws of a jurisdiction other than that in which the Borrower is a resident for tax purposes.
“Foreign Plan” means any employee pension benefit plan, program, policy, arrangement or agreement maintained or contributed to by the Borrower or any Subsidiary with respect to employees employed outside the United States (other than any governmental arrangement).
“Fronting Arrangement” means an agreement or other arrangement by an Insurance Subsidiary pursuant to which an insurer or insurers agree to issue insurance policies at the request or on behalf of such Insurance Subsidiary and such Insurance Subsidiary assumes the obligations in respect thereof pursuant to a Reinsurance Agreement or otherwise.
 “Fund” means any Person (other than a natural Person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit in the ordinary course of its activities.
 “GAAP” means, subject to Section 1.3, generally accepted accounting principles in the United States, or as appropriate locally, as in effect as of the date of determination thereof.
 “Governmental Authority” means the government of the United States, Bermuda, or any other nation, or of any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national bodies such as the European Union or the European Central Bank).
“Group” means the Borrower and each of its Subsidiaries from time to time.
“Group Enhanced Capital Resources” means the capital resources of the Group which are, pursuant to the Insurance Act 1978 of Bermuda, as amended (including any rules and regulations promulgated thereunder), eligible to satisfy the Group Enhanced Capital Requirement.
“Group Enhanced Capital Requirement” means the enhanced capital requirement applicable to the Group pursuant to the Insurance (Group Supervision) Rules 2011 of Bermuda, as implemented and applied in Bermuda, and taking into account of any transitional measures and any capital add on permitted or applied by the Bermuda Monetary Authority.
“Group Structure Chart” means the most recent group structure chart of the Group delivered to the Administrative Agent by the Borrower on or prior to the date of this Agreement.
“Guarantee” means, as to any Person, any obligation, contingent or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation payable or performable by another Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for the purpose of assuring the obligee in respect of such Indebtedness or other obligation of the payment or performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other financial statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in 

9

whole or in part); provided that the term “Guarantee” shall not include (i) endorsements for collection or deposit in the ordinary course of business or (ii) obligations of any Insurance Subsidiary under Insurance Contracts, Reinsurance Agreements, Fronting Arrangements or Retrocession Agreements. The amount of any Guarantee made by any guarantor shall be deemed to be the lower of (A) an amount equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made and (B) the maximum amount for which such guarantor may be liable pursuant to the terms of the instrument embodying such Guarantee, unless such primary obligation and the maximum amount for which such guarantor may be liable are not stated or determinable, in which case the amount of such Guarantee shall be such guarantor’s maximum reasonably anticipated liability in respect thereof as determined by the Loan Parties in good faith. The term “Guarantee” as a verb has a corresponding meaning.
“Guaranteed Obligations” has the meaning specified in Section 10.1.
“Guarantor” means each of Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a limited liability company formed in the State of Delaware and any Person who has executed a Guarantor Joinder Agreement or comparable guaranty documentation, as the case may be, reasonably satisfactory to the Administrative Agent, pursuant to Section 6.15 of this Agreement.
“Guarantor Joinder Agreement” means a Guarantor Joinder Agreement among the Borrower, each applicable Guarantor and the Administrative Agent substantially in the form set out at Exhibit H (and with such changes thereto as shall be necessary or appropriate as reasonably agreed to by the Administrative Agent and the Borrower).
“Guaranty” means the guaranty of each Guarantor set forth in Article X.
“Hazardous Materials” means all explosive or radioactive substances or wastes and all hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas, infectious or medical wastes, and other substances or wastes of any nature regulated under or with respect to which liability or standards of conduct are imposed pursuant to any Environmental Law.
“Holding Company” means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary.
“Hybrid Capital” means any security that affords equity benefit to the issuer thereof (under the procedures and guidelines of S&P at the time of issuance of such security) by having ongoing payment requirements that are more flexible than interest payments associated with conventional indebtedness for borrowed money and by being contractually subordinated to such indebtedness.
“Increased Amount Date” has the meaning assigned thereto in Section 3.12(a).
“Incremental Lender” has the meaning assigned thereto in Section 3.12(c).
“Incremental Term Loan” has the meaning assigned thereto in Section 3.12(a).
“Incremental Term Loan Commitment” has the meaning assigned thereto in Section 3.12(a).
“Indebtedness” means, as to any Person at a particular time, without duplication, all of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:
(a)    all obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;
(b)    any amount raised by acceptance under any acceptance credit facility or dematerialized equivalent;
(c)    receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);
(d)    net obligations of such Person under any Swap Contract;

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(e)    indebtedness (excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person, whether or not such indebtedness shall have been assumed by such Person or is limited in recourse;
(f)    any counter-indemnity or reimbursement obligation in respect of a guarantee, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution except in respect of an underlying liability of an entity which is a member of the Group;
(g)    any amount of any liability under an advance or deferred purchase agreement if (1) one of the primary reasons behind entering into the agreement is to raise capital or (2) the agreement is in respect of the supply of assets or services and payment is due more than 90 days after the date of supply (excluding any trade accounts payable in the ordinary course of business);
(h)    any amount raised under any other transaction having the commercial effect of a borrowing; 
(i)    all Attributable Indebtedness;
(j)    all obligations of such Person in respect of Disqualified Equity Interests, with the amount of Indebtedness represented by such Disqualified Equity Interests being equal to the greater of its voluntary or involuntary liquidation preference and its maximum fixed repurchase price, but excluding accrued dividends, if any (for purposes hereof, the "maximum fixed repurchase price" of any Disqualified Equity Interests that does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Equity Interest as if such Disqualified Equity Interest were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Agreement, and if such price is based upon, or measured by, the fair market value of such Disqualified Equity Interest, such fair market value shall be determined reasonably and in good faith by the board of directors or other governing body of the issuer of such Disqualified Equity Interest); and
(k)    the amount of any liability in respect of any Guarantees for any items referred to at (a) to (j) above.
For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation, limited liability company or other entity that provides for the limited liability of its owners) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any Indebtedness of any Person for purposes of clause (e) that is expressly made non-recourse or limited-recourse (limited solely to the assets securing such Indebtedness) to such Person shall be deemed to be equal to the lesser of (i) the aggregate principal amount of such Indebtedness and (ii) the fair market value of the property encumbered thereby as determined by such Person in good faith. Indebtedness shall not include (A) current trade payables (including current payables under insurance contracts and current reinsurance payables) and accrued expenses, in each case arising in the ordinary course of business, (B) obligations of any Insurance Subsidiary under Policies, Reinsurance Agreements, Retrocession Agreements or Fronting Arrangements (including Guarantees of any such obligations) which are entered into in the ordinary course of business.
“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 Loan Party under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.
“Indemnitee” has the meaning specified in Section 11.3(b).
“Information” has the meaning specified in Section 11.10.
“Initial Term Loan” means the term loan made, or to be made, to the Borrower by the Lenders pursuant to Section 2.1.
“Insurance Contract” means any insurance contract or policy issued by an Insurance Subsidiary that is not a Reinsurance Agreement, Fronting Arrangement or Retrocession Agreement.
 “Insurance Subsidiary” means a member of the Group which is licensed by any Governmental Authority to engage in the insurance and/or reinsurance business.

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“Interest Period” means, as to each LIBOR Rate Loan, the period commencing on the date of such LIBOR Rate Loan and ending on the numerically corresponding day in the calendar month that is one, two, three, or six months or, if agreed by all of the Lenders, twelve months thereafter, as specified in the applicable Notice of Borrowing or Notice of Conversion/Continuation; provided that: (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period, (iii) no Interest Period shall extend beyond the Maturity Date, and (iv) there shall be no more than six (6) Interest Periods in effect at any time.  For purposes hereof, the date of a LIBOR Rate Loan initially shall be the date on which such LIBOR Rate Loan is made and thereafter shall be the effective date of the most recent conversion or continuation of such LIBOR Rate Loan.
 “Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of Equity Interests or debt or other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person and any arrangement pursuant to which the investor incurs Indebtedness of the type referred to in clause (h) of the definition of “Indebtedness” in respect of such other Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions) of all or substantially all of the property and assets or business of another Person or assets constituting a business unit, line of business or division of such Person. For purposes of covenant compliance, the amount of any Investment shall be the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment but giving effect to any returns or distributions of capital or repayment of principal actually received in case by such Person with respect thereto.
“Investment Company Act” means the Investment Company Act of 1940 (15 U.S.C. § 80(a)(1), et seq.).
“IRS” means the United States Internal Revenue Service.
“Laws” means, collectively, all international, foreign, federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority, in each case whether or not having the force of law.
 “Lenders” means the Persons listed on Schedule 1.1 and any other Person that shall have become a party to this Agreement as a Lender pursuant to an Assignment and Assumption or pursuant to Section 3.12 other than any Person that ceases to be a party hereto as a Lender pursuant to an Assignment and Assumption.  
“Lender Joinder Agreement” means a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent delivered in connection with Section 3.12.
“Lending Office” means, with respect to any Lender, the office of such Lender maintaining such Lender’s Term Loans.
“LIBOR” means, subject to the implementation of a Replacement Rate in accordance with Section 3.7(c),
(a)    for any interest rate calculation with respect to a LIBOR Rate Loan, the rate of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal to the applicable Interest Period as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent, at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period.  If, for any reason, such rate is not so published then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) two (2) London Banking Days prior to the first day of the applicable Interest Period for a period equal to such Interest Period, and
(b)    for any interest rate calculation with respect to a Base Rate Loan, the rate of interest per annum determined on the basis of the rate for deposits in Dollars for an Interest Period equal to one month (commencing 

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on the date of determination of such interest rate) as published by the ICE Benchmark Administration Limited, a United Kingdom company, or a comparable or successor quoting service approved by the Administrative Agent, at approximately 11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day, then the immediately preceding Business Day.  If, for any reason, such rate is not so published then “LIBOR” for such Base Rate Loan shall be determined by the Administrative Agent to be the arithmetic average of the rate per annum at which deposits in Dollars would be offered by first class banks in the London interbank market to the Administrative Agent at approximately 11:00 a.m. (London time) on such date of determination for a period equal to one month commencing on such date of determination.
Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes, absent manifest error.  
Notwithstanding the foregoing, (x) in no event shall LIBOR (including, without limitation, any Replacement Rate with respect thereto) be less than 0% and (y) unless otherwise specified in any amendment to this Agreement entered into in accordance with Section 3.7(c), in the event that a Replacement Rate with respect to LIBOR is implemented then all references herein to LIBOR shall be deemed references to such Replacement Rate.
“LIBOR Rate” means a rate per annum determined by the Administrative Agent pursuant to the following formula:
	
		
	LIBOR Rate =
	LIBOR

	 
	1.00-Eurodollar Reserve Percentage

“LIBOR Rate Loan” means any Term Loan bearing interest at a rate based upon the LIBOR Rate as provided in Section 3.1(a).
 “Lien” means any mortgage, pledge, hypothecation, collateral assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on title to real property, and any financing lease having substantially the same economic effect as any of the foregoing).
 “Loan Documents” means, collectively, this Agreement, each Term Loan Note, the Fee Letters, any Guarantor Joinder Agreement and each other document, instrument, certificate and agreement executed and delivered by the Loan Parties or any of their respective Subsidiaries in favor of or provided to the Administrative Agent in connection with this Agreement or otherwise referred to herein or contemplated hereby.
“Loan Parties” means, collectively, the Borrower and the Guarantors.
“London Banking Day” means any day on which dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market.
“Margin Stock” means margin stock within the meaning of Regulations T, U and X.
 “Material Adverse Effect” means (a) a material adverse change in, or a material adverse effect on, the operations, business or financial condition of the Borrower and its Subsidiaries taken as a whole; or (b) a material adverse effect on (i) the ability of a Loan Party to perform its payment obligations under the Loan Documents, or (ii) the rights, remedies and benefits available to, or conferred upon, the Administrative Agent or any Lender under any Loan Documents.   
“Material Subsidiary” means a Subsidiary of the Borrower that after the elimination of intercompany accounts, has total assets in excess of 10% of the consolidated total assets of the Borrower and its Subsidiaries based upon and as of the date of delivery of the most recent consolidated financial statements of the Borrower and its Subsidiaries furnished pursuant to Section 5.5(a) or Section 6.1, as applicable.  

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“Maturity Date” means the first to occur of (a) the third anniversary of the Closing Date, and (b) the date of acceleration of the Term Loans pursuant to Section 8.2.
 “Multiemployer Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which a Loan Party or any ERISA Affiliate either currently or during the preceding five plan years, has made or been obligated to make contributions, or has any liability.
“Multiple Employer Plan” means a Plan with respect to which a Loan Party or any ERISA Affiliate is a contributing sponsor, and that has two or more contributing sponsors at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.
“Net Worth” means, in relation to any member of the Group, at any time, the aggregate of the shareholders’ equity determined in accordance with GAAP of such Group member at such time.
 “Non-Consenting Lender” means any Lender that does not approve any consent, waiver, amendment, modification or termination that (a) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 11.2 and (b) has been approved by the Required Lenders.
“Non-Defaulting Lender” means, at any time, each Lender that is not a Defaulting Lender at such time.
“Notice of Borrowing” has the meaning assigned thereto in Section 2.2.
“Notice of Conversion/Continuation” has the meaning assigned thereto in Section 3.2.
“Notice of Prepayment” has the meaning assigned thereto in Section 2.4.
“Obligations” means all principal of and interest (including interest and fees accruing after the filing of a petition or commencement of a case by or with respect to any Loan Party seeking relief under any applicable Debtor Relief Laws, whether or not the claim for such interest and fees is allowed in such proceeding) on the Term Loans (whether or not evidenced by any note) and all fees, expenses, indemnities, liabilities, financial accommodations, covenants, duties and other obligations owing, due or payable at any time by any Loan Party to the Administrative Agent, any Lender or any other Person entitled thereto, under this Agreement or any of the other Loan Documents, in each case whether direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or unliquidated, secured or unsecured, and whether existing by contract, operation of law or otherwise.
“OFAC” has the meaning specified in Section 5.18(a).

“Offer Period” has the meaning assigned thereto in Section 3.12(a).
“Organizational Documents” means (a) as to any corporation, the charter or certificate or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction), (b) as to any limited liability company, the certificate or articles of formation or organization and operating or limited liability agreement and (c) as to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity.

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient 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 Term Loan or Loan Document).

“Other Taxes” means all present or future stamp, court, 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 (other than an assignment made pursuant to Section 3.11(b)).

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“Participant” has the meaning specified in Section 11.9(d).
“Participant Register” has the meaning specified in Section 11.9(d).
 “PATRIOT Act” means the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)). 
“Payment in Full” or “Pay in Full” or “Paid in Full” means the payment in full in cash of all Obligations (or Guaranteed Obligations, as applicable) (other than indemnities and other contingent obligations not yet due and payable under any Loan Documents) and termination or expiration of all Commitments.
“PBGC” means the Pension Benefit Guaranty Corporation.
“Pension Act” means the Pension Protection Act of 2006.
“Pension Funding Rules” means the rules of the Code and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA
“Pension Plan” means any employee pension benefit plan (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by a Loan Party or any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.
“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA, maintained for employees of a Loan Party or any ERISA Affiliate, or any such plan to which a Loan Party or any ERISA Affiliate is required to contribute on behalf of any of its employees or with respect to which the a Loan Party has any liability.
“Platform” means Debt Domain, Intralinks, SyndTrak or a substantially similar electronic transmission system.
“Policies” means all insurance and annuity policies and contracts, guaranteed interest contracts, guaranteed investment contracts, and funding agreements, and similar undertakings or arrangements (including riders to any such policies or contracts, certificates issued with respect to life insurance or annuity contracts and any contracts issued in connection with retirement plans or arrangements) and assumption certificates issued or to be issued (or filed pending current review by applicable Governmental Authorities) by any Insurance Subsidiary and any coinsurance agreements entered into or to be entered into by any Insurance Subsidiary.
“PRA” means the United Kingdom Prudential Regulation Authority and any predecessor or successor body or bodies.
“Prime Rate” means, at any time, the rate of interest per annum publicly announced from time to time by the Administrative Agent as its prime rate.  Each change in the Prime Rate shall be effective as of the opening of business on the day such change in such prime rate occurs.  The parties hereto acknowledge that the rate announced publicly by the Administrative Agent as its prime rate is an index or base rate and shall not necessarily be its lowest or best rate charged to its customers or other banks.
“Private Act” means separate legislation enacted in Bermuda with the intention that such legislation apply specifically to any Loan Party (not being legislation of general public application), in whole or in part.
 “PTE” means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from time to time.
“Public Lenders” has the meaning specified in Section 11.1(f).
“Quarter Date” means each of March 31, June 30, September 30 and December 31.

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 “Ratable Share” means, with respect to any Lender at any time, the percentage of the total outstanding principal balance of the Term Loans represented by the outstanding principal balance of such Lender’s Term Loans.
 “Recipient” means (a) the Administrative Agent and (b) any Lender, as applicable.
“Register” has the meaning specified in Section 11.9(c).
“Regulation T” means Regulation T of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation U” means Regulation U of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Regulation X” means Regulation X of the Federal Reserve Board, as in effect from time to time and all official rulings and interpretations thereunder or thereof.
“Reinsurance Agreement” means any agreement, contract, treaty, certificate or other arrangement whereby any Insurance Subsidiary agrees to transfer, cede or retrocede to another insurer or reinsurer all or part of the liability assumed or assets held by such Insurance Subsidiary under a policy or policies of insurance issued by such Insurance Subsidiary.
 “Related Parties” means, with respect to any Person, such Person’s Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors, attorneys-in-fact and representatives of such Person and of such Person’s Affiliates.
“Removal Effective Date” has the meaning specified in Section 9.6(b).
“Replacement Rate” has the meaning specified in Section 3.7(c).
“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30-day notice period has been waived.
“Required Lenders” means, at any time, Lenders having Term Loan Exposures representing more than 50% of the Term Loan Exposures of all Lenders. The Term Loan Exposure of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.
“Resignation Effective Date” has the meaning specified in Section 9.6(a).
“Responsible Officer” means (a) the chief executive officer, president, executive officer or a Financial Officer of a Loan Party, (b) solely for purposes of the delivery of incumbency certificates and certified Organizational Documents and resolutions pursuant to Section 4.1, any secretary or assistant secretary of a Loan Party and (c) solely for purposes of Notices of Borrowing or Notices of Prepayment given pursuant to ARTICLE II, any other officer or employee of a Loan Party so designated from time to time by one of the officers described in clause (a) in a notice to the Administrative Agent (together with evidence of the authority and capacity of each such Person to so act in form and substance satisfactory to the Administrative Agent). Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any Equity Interest of any Person, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interest, or on account of any return of capital to such Person’s shareholders, partners or members (or the equivalent Persons thereof).
“Retrocession Agreement” means any agreement, contract, treaty or other arrangement whereby one or more insurers or reinsurers, as retrocessionaires, assume liabilities of reinsurers under a Reinsurance Agreement or other retrocessionaires under another Retrocession Agreement.

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“Revolving Credit Facility” means that certain credit facility established pursuant to the Revolving Credit Facility Documents, and any refinancing or replacement thereof.
“Revolving Credit Facility Credit Agreement” means that certain Revolving Credit Agreement, dated as of August 16, 2018, among the Borrower, Kenmare Holdings Ltd., Enstar (US Asia-Pac) Holdings Limited and Enstar Holdings (US) LLC, the lenders party thereto, National Australia Bank Limited, as administrative agent, and the other parties party thereto, as the same may be amended, restated, supplemented or otherwise modified from time to time.
“Revolving Credit Facility Documents” means the Revolving Credit Facility Credit Agreement and any other documents entered into in connection therewith, including any promissory notes, fee letters, and any guarantor joinder agreements.
“S&P” means Standard & Poor’s Financial Services LLC.
“Sanctions” has the meaning specified in Section 5.18(a).
“SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions.
“Shareholders’ Equity” means, as of any date of determination, consolidated shareholders’ equity of the Borrower and its Subsidiaries as of such date determined in accordance with GAAP.
“Solvent” means, as to any Person as of any date of determination, that on such date (a) the fair value of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (b) the present fair saleable value of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.
“Subsidiary” of a Person means a corporation, partnership, limited liability company, association or joint venture or other business entity of which a majority of the Equity Interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time owned or the management of which is controlled, directly, or indirectly through one or more intermediaries, by such Person. Unless otherwise specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of a Loan Party.
“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, that are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement.
“Swap Termination Value” means, as to any one or more Swap Contracts, after taking into account the effect of any legally enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a Lender or any Affiliate of a Lender).

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“Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called synthetic, off-balance sheet or tax retention lease or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment).
“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.
“Term Loan Exposure” means, as to any Lender at any time, the unused Commitments and outstanding Term Loans of such Lender at such time.
“Term Loan Note” means a promissory note made by the Borrower in favor of a Lender evidencing the portion of the Term Loans made by such Lender, substantially in the form attached as Exhibit A, and any substitutes therefor, and any replacements, restatements, renewals or extension thereof, in whole or in part.
 “Term Loans” means the Initial Term Loans and, if applicable, the Incremental Term Loans and “Term Loan” means any of such Term Loans.
 “Total Capital” means, in respect of any date, the sum of (a) the Consolidated Financial Indebtedness on such date (excluding, to the extent otherwise included, all Hybrid Capital), (b) the Consolidated Net Worth on such date (excluding, to the extent otherwise included, all Hybrid Capital) and (c) the aggregate principal amount of all Hybrid Capital on such date.
“United States” and “U.S.” mean the United States of America.
“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 specified in Section 3.10(g).
“Wells Fargo” means Wells Fargo Bank, National Association, a national banking association.
“Wholly-Owned” means, as to a Subsidiary of a Person, a Subsidiary of such Person all of the outstanding Equity Interests of which (other than (a) director’s qualifying shares and (b) shares issued to foreign nationals to the extent required by Applicable Law) are owned by such Person and/or by one or more Wholly-Owned Subsidiaries of such Person.
“Withholding Agent” means each Loan Party and the Administrative Agent.
“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
Section 1.2    Other Definitions and Provisions.  With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document: (a) the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined, (b) whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms, (c) the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”, (d) the word “will” shall be construed to have the same meaning and effect as the word “shall”, (e) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (f) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (g) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (h) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (i) the term “documents” includes any and all instruments, documents, agreements, certificates, notices, reports, financial statements and other writings, however evidenced, whether in physical or electronic form and (j) in the computation of periods of time from a specified date to a later specified date, the word “from” means 

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“from and including;” the words “to” and “until” each mean “to but excluding;” and the word “through” means “to and including”.
Section 1.3    Accounting Terms; Changes in GAAP.
(a)    Accounting Terms. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall be construed in conformity with GAAP. Financial statements and other information required to be delivered by any Loan Party to the Lenders pursuant to Section 6.1(a) and Section 6.1(b) shall be prepared in accordance with GAAP as in effect at the time of such preparation. Notwithstanding the foregoing, for purposes of determining compliance with any covenant (including the computation of any financial covenant) contained herein, Indebtedness of any Loan Party and its Subsidiaries shall be deemed to be carried at 100% of the outstanding principal amount thereof, and the effects of FASB ASC 825 and FASB ASC 470-20 on financial liabilities shall be disregarded. For the avoidance of doubt, any obligations relating to a lease accounted for by any Loan Party as an operating lease under FASB ASC Topic 840 or under FASB ASC Topic 842 shall be accounted for as an operating lease and not as a Capitalized Lease.
(b)    Changes in GAAP. If a Loan Party notifies the Administrative Agent that such Loan Party requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Loan Parties that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.
Section 1.4    Rounding.  Any financial ratios required to be maintained pursuant to this Agreement shall be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio or percentage is expressed herein and rounding the result up or down to the nearest number (with a rounding-up if there is no nearest number).
Section 1.5    References to Agreement and Laws.  Unless otherwise expressly provided herein, (a) any definition or reference to formation documents, governing documents, agreements (including the Loan Documents) and other contractual documents or instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and (b) any definition or reference to any Applicable Law, including, without limitation, Anti-Corruption Laws, Anti-Money Laundering Laws, the Bankruptcy Code, the Code, ERISA, the Exchange Act, the PATRIOT Act, the UCC, the Investment Company Act, the Trading with the Enemy Act of the United States or any of the foreign assets control regulations of the United States Treasury Department, shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Applicable Law.
Section 1.6    Times of Day.  Unless otherwise specified, all references herein to times of day shall be references to Eastern time (daylight or standard, as applicable).
Section 1.7    Rates.  The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability with respect to, the administration, submission or any other matter related to the rates in the definition of “LIBOR”.
Section 1.8    Divisions.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

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ARTICLE II
TERM LOAN FACILITY
Section 2.1    Initial Term Loan.  Subject to the terms and conditions of this Agreement and the other Loan Documents, and in reliance upon the representations and warranties set forth in this Agreement and the other Loan Documents, each Lender severally agrees to make the Initial Term Loan to the Borrower on the Closing Date in a principal amount equal to such Lender’s Commitment as of the Closing Date. 
Section 2.2    Procedure for Advance of Term Loans. 
(a)    Initial Term Loan. The Borrower shall give the Administrative Agent an irrevocable prior written notice substantially in the form of Exhibit B (a “Notice of Borrowing”) prior to 10:00 a.m. on the Closing Date requesting that the Lenders make the Initial Term Loan as a Base Rate Loan on such date (provided that the Borrower may request, no later than three (3) Business Days prior to the Closing Date, that the Lenders make the Initial Term Loan as a LIBOR Rate Loan if the Borrower has delivered to the Administrative Agent a letter in form and substance reasonably satisfactory to the Administrative Agent indemnifying the Lenders in the manner set forth in Section 3.8 of this Agreement).  Upon receipt of such Notice of Borrowing from the Borrower, the Administrative Agent shall promptly notify each Lender thereof.  Not later than 11:00 a.m. on the Closing Date, each Lender will make available to the Administrative Agent for the account of the Borrower, at the Administrative Agent’s Office in immediately available funds, the amount of such Initial Term Loan to be made by such Lender on the Closing Date.  The Borrower hereby irrevocably authorizes the Administrative Agent to disburse the proceeds of the Initial Term Loan in immediately available funds by wire transfer to such Person or Persons as may be designated by the Borrower in writing. 
(b)    Incremental Term Loans.  Any Incremental Term Loans shall be borrowed pursuant to, and in accordance with Section 3.12.
Section 2.3    Repayment of Term Loans.  If not sooner paid, the Borrower shall repay the aggregate outstanding principal amount of the Term Loans in full, together with accrued interest thereon, on the Maturity Date.
Section 2.4    Prepayments of Term Loans.  The Borrower shall have the right at any time and from time to time, without premium or penalty, to prepay the Term Loans, in whole or in part, upon delivery of an irrevocable prior written notice to the Administrative Agent substantially in the form attached as Exhibit C (a “Notice of Prepayment”) not later than 1:00 p.m. (i) on the same Business Day as each Base Rate Loan and (ii) at least three (3) Business Days before each LIBOR Rate Loan, specifying the date and amount of repayment, whether the repayment is of LIBOR Rate Loans or Base Rate Loans or a combination thereof, and if a combination thereof, the amount allocable to each.  Each prepayment of the Term Loans hereunder shall be in an aggregate principal amount of at least $5,000,000 or any whole multiple of $1,000,000 in excess thereof and shall be applied, as directed by the Borrower, to the outstanding principal of the Term Loans.  Each repayment shall be accompanied by any amount, if any, required to be paid pursuant to Section 3.8 hereof.  A Notice of Prepayment received after 1:00 p.m. shall be deemed received on the next Business Day.  The Administrative Agent shall promptly notify the applicable Lenders of each Notice of Prepayment. Notwithstanding the foregoing, any Notice of Prepayment delivered in connection with any refinancing of all of the Term Loans with the proceeds of such refinancing or of any other incurrence of indebtedness or the occurrence of some other identifiable event or condition, may be, if expressly so stated to be, contingent upon the consummation of such refinancing or incurrence or occurrence of such other identifiable event or condition and may be revoked by the Borrower in the event such contingency is not met; provided that the delay or failure of such contingency shall not relieve the Borrower from its obligations in respect thereof under Section 3.8. 
ARTICLE III
GENERAL LOAN PROVISIONS
Section 3.1    Interest.
(a)    Interest Rate Options.  Subject to the provisions of this Section, at the election of the Borrower, the Term Loans shall bear interest at (A) the Base Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable Margin.  The Borrower shall select the rate of interest and Interest Period, if any, applicable to any Term Loan at the time a Notice of Borrowing is given or at the time a Notice of Conversion/Continuation is given pursuant to Section 3.2.

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(b)    Default Rate. Subject to Section 8.3, (i) immediately upon the occurrence and during the continuance of an Event of Default under Section 8.1(g) or Section 8.1(h), or (ii) at the election of the Required Lenders (or the Administrative Agent at the direction of the Required Lenders), upon the occurrence and during the continuance of any other Event of Default, (A) the Borrower shall no longer have the option to request LIBOR Rate Loans, (B) all outstanding LIBOR Rate Loans shall bear interest at a rate per annum of two percent (2%) in excess of the rate (including the Applicable Margin) then applicable to LIBOR Rate Loans until the end of the applicable Interest Period and thereafter at a rate equal to two percent (2%) in excess of the rate (including the Applicable Margin) then applicable to Base Rate Loans, (C) all outstanding Base Rate Loans and other Obligations arising hereunder or under any other Loan Document shall bear interest at a rate per annum equal to two percent (2%) in excess of the rate (including the Applicable Margin) then applicable to Base Rate Loans or such other Obligations arising hereunder or under any other Loan Document and (D) all accrued and unpaid interest shall be due and payable on demand of the Administrative Agent.  Interest and fees shall continue to accrue on the Obligations after the filing by or against any Loan Party of any petition seeking any relief in bankruptcy or under any Debtor Relief Law.
(c)    Interest Payment and Computation. Interest on each Base Rate Loan shall be due and payable in arrears on the last Business Day of each calendar quarter; and interest on each LIBOR Rate Loan shall be due and payable on the last day of each Interest Period applicable thereto, and if such Interest Period extends over three (3) months, at the end of each three (3) month interval during such Interest Period.  All computations of interest for Base Rate Loans when the Base Rate is determined by the Prime Rate shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed.  All other computations of fees and interest provided hereunder shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a 365/366-day year).
(d)    Maximum Rate. In no contingency or event whatsoever shall the aggregate of all amounts deemed interest under this Agreement charged or collected pursuant to the terms of this Agreement exceed the highest rate permissible under any Applicable Law which a court of competent jurisdiction shall, in a final determination, deem applicable hereto.  In the event that such a court determines that the Lenders have charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall automatically be reduced to the maximum rate permitted by Applicable Law and the Lenders shall at the Administrative Agent’s option (i) promptly refund to the Borrower any interest received by the Lenders in excess of the maximum lawful rate or (ii) apply such excess to the principal balance of the Obligations.  It is the intent hereof that the Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by the Borrower under Applicable Law.
Section 3.2    Notice and Manner of Conversion or Continuation of Term Loans.  Provided that no Default or Event of Default has occurred and is then continuing, the Borrower shall have the option to (a) convert at any time following the third Business Day after the Closing Date all or any portion of any outstanding Base Rate Loans in a principal amount equal to $5,000,000 or any whole multiple of $1,000,000 in excess thereof into one or more LIBOR Rate Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of its outstanding LIBOR Rate Loans in a principal amount equal to $5,000,000 or a whole multiple of $1,000,000 in excess thereof into Base Rate Loans or (ii) continue such LIBOR Rate Loans as LIBOR Rate Loans.  Whenever the Borrower desires to convert or continue Term Loans as provided above, the Borrower shall give the Administrative Agent irrevocable prior written notice in the form attached as Exhibit D (a “Notice of Conversion/Continuation”) not later than 11:00 a.m. three (3) Business Days before the day on which a proposed conversion or continuation of such Term Loan is to be effective specifying (A) the Term Loans to be converted or continued, and, in the case of any LIBOR Rate Loan to be converted or continued, the last day of the Interest Period therefor, (B) the effective date of such conversion or continuation (which shall be a Business Day), (C) the principal amount of such Term Loans to be converted or continued, and (D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan; provided that if the Borrower wishes to request LIBOR Rate Loans having an Interest Period of twelve months in duration, such notice must be received by the Administrative Agent not later than 11:00 a.m. four (4) Business Days prior to the requested date of such conversion or continuation, whereupon the Administrative Agent shall give prompt notice to the applicable Lenders of such request and determine whether the requested Interest Period is acceptable to all of them.  If the Borrower fails to give a timely Notice of Conversion/Continuation prior to the end of the Interest Period for any LIBOR Rate Loan, then the applicable LIBOR Rate Loan shall be continued as a LIBOR Rate Loan with an Interest Period of one month.  Any such automatic continuation of a LIBOR Rate Loan shall be effective as of the last day of the Interest Period then in effect with respect to the applicable LIBOR Rate Loan.  If the Borrower requests a conversion to, or continuation of, LIBOR Rate Loans, but fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one month. The Administrative Agent shall promptly notify the affected Lenders of such Notice of Conversion/Continuation.

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Section 3.3    Fees. 
(a)    Administrative Agent Fees.  The Borrower agrees to pay to the Administrative Agent for its own account the fees payable in the amounts and at the times agreed pursuant to the Administrative Agency Fee Letter or otherwise in writing between the Borrower and the Administrative Agent.  
(b)    Other Fees.  The Borrower agrees to pay to the Administrative Agent, the Arrangers and the Lenders party to this Agreement as of the Closing Date fees in the amounts and at the times agreed upon separately between the Borrower and the Administrative Agent, the Arrangers or the Lenders, as applicable, including pursuant to the Fee Letters.
Section 3.4    Manner of Payment.  Each payment by the Borrower on account of the principal of or interest on the Term Loans or of any fee, commission or other amounts payable to the Lenders under this Agreement shall be made not later than 2:00 p.m. on the date specified for payment under this Agreement to the Administrative Agent at the Administrative Agent’s Office for the account of the Lenders entitled to such payment in Dollars, in immediately available funds and shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff.  Any payment received after such time but before 3:00 p.m. on such day shall be deemed a payment on such date for the purposes of Section 8.1, but for all other purposes shall be deemed to have been made on the next succeeding Business Day.  Any payment received after 3:00 p.m. shall be deemed to have been made on the next succeeding Business Day for all purposes.  Upon receipt by the Administrative Agent of each such payment, the Administrative Agent shall distribute to each such Lender at its address for notices set forth herein its Ratable Share of such payment and shall wire advice of the amount of such credit to each Lender.  Each payment to the Administrative Agent of Administrative Agent’s fees or expenses shall be made for the account of the Administrative Agent and any amount payable to any Lender under Section 3.8, Section 3.9, Section 3.10 or Section 11.3 shall be paid to the Administrative Agent for the account of the applicable Lender.  Subject to the definition of Interest Period, if any payment under this Agreement shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day and such extension of time shall in such case be included in computing any interest if payable along with such payment.  Notwithstanding the foregoing, if there exists a Defaulting Lender each payment by the Borrower to such Defaulting Lender hereunder shall be applied in accordance with Section 3.13(a)(ii).
Section 3.5    Evidence of Indebtedness.  The Term Loans made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary course of business.  The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive, absent error, of the amount of the Term Loans made by the Lenders to the Borrower and its Subsidiaries and the interest and payments thereon.  Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the Obligations.  In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error.  Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Term Loan Note, which shall evidence such Lender’s Term Loans, in addition to such accounts or records.  Each Lender may attach schedules to its Term Loan Notes and endorse thereon the date, amount and maturity of its Term Loans and payments with respect thereto.
Section 3.6    Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of its Term Loans or other obligations hereunder resulting in such Lender receiving payment of a proportion of the aggregate amount of its Term Loans and accrued interest thereon or other such obligations (other than pursuant to Section 3.8, Section 3.9, Section 3.10 or Section 11.3) greater than its pro rata share thereof as provided herein, then the Lender receiving such greater proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the Loans and such other obligations of the other Lenders, or make such other adjustments as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their respective Term Loans and other amounts owing them; provided that: (a) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (b) the provisions of this paragraph shall not be construed to apply to (A) any payment made by the Loan Parties pursuant to and in accordance with the express terms of this Agreement (including the application of funds arising from the existence of a Defaulting Lender) or (C) any payment obtained by a Lender as consideration for the assignment of, or sale of, a participation in any of its Term Loans to any assignee or participant, other than to any Loan Party or 

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any of their Subsidiaries or Affiliates (as to which the provisions of this paragraph shall apply).  Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under Applicable Law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against each Loan Party rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of each Loan Party in the amount of such participation.
Section 3.7    Changed Circumstances.
(a)    Circumstances Affecting LIBOR Rate Availability. Unless and until a Replacement Rate is implemented in accordance with clause (c) below, in connection with any request for a LIBOR Rate Loan or a conversion to or continuation thereof or otherwise, if for any reason (i) the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Term Loan, (ii) the Administrative Agent shall determine (which determination shall be conclusive and binding absent manifest error) that reasonable and adequate means do not exist for the ascertaining the LIBOR Rate for such Interest Period with respect to a proposed LIBOR Rate Loan or (iii) the Required Lenders shall determine (which determination shall be conclusive and binding absent manifest error) that the LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of making or maintaining such Term Loans during such Interest Period, then the Administrative Agent shall promptly give notice thereof to the Borrower.  Thereafter, until the Administrative Agent notifies the Borrower that such circumstances no longer exist, the obligation of the Lenders to make LIBOR Rate Loans and the right of the Borrower to convert any Term Loan to or continue any Term Loan as a LIBOR Rate Loan shall be suspended, and the Borrower shall either (A) repay in full (or cause to be repaid in full) the then outstanding principal amount of each such LIBOR Rate Loan together with accrued interest thereon (subject to Section 3.1(d)), on the last day of the then current Interest Period applicable to such LIBOR Rate Loan; or (B) convert the then outstanding principal amount of each such LIBOR Rate Loan to a Base Rate Loan as of the last day of such Interest Period.
(b)    Laws Affecting LIBOR Rate Availability.  If, after the date hereof, the introduction of, or any change in, any Applicable Law or any change in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any of the Lenders (or any of their respective Lending Offices) with any request or directive (whether or not having the force of law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its obligations hereunder to make or maintain any LIBOR Rate Loan, such Lender shall promptly give notice thereof to the Administrative Agent and the Administrative Agent shall promptly give notice to the Borrower and the other Lenders.  Thereafter, until the Administrative Agent notifies the Borrower that such circumstances no longer exist, (i) the obligations of the Lenders to make LIBOR Rate Loans, and the right of the Borrower to convert any Term Loan to a LIBOR Rate Loan or continue any Term Loan as a LIBOR Rate Loan shall be suspended and thereafter the Borrower may select only Base Rate Loans and (ii) if any of the Lenders may not lawfully continue to maintain a LIBOR Rate Loan to the end of the then current Interest Period applicable thereto, the applicable Term Loan shall immediately be converted to a Base Rate Loan for the remainder of such Interest Period. 
(c)    Alternative Rate of Interest. Notwithstanding anything to the contrary in Section 3.7(a) above, if the Administrative Agent has made the determination (such determination to be conclusive absent manifest error) that (i) the circumstances described in Section 3.7(a)(i) or (a)(ii) have arisen and that such circumstances are unlikely to be temporary, (ii) any applicable interest rate specified herein is no longer a widely recognized benchmark rate for newly originated loans in the syndicated loan market in the applicable currency or (iii) the applicable supervisor or administrator (if any) of any applicable interest rate specified herein or any Governmental Authority having, or purporting to have, jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which any applicable interest rate specified herein shall no longer be used for determining interest rates for loans in the syndicated loan market in the applicable currency, then the Administrative Agent may, to the extent practicable (in consultation with the Borrower and as determined by the Administrative Agent to be generally in accordance with similar situations in other transactions in which it is serving as administrative agent or otherwise consistent with market practice generally), establish a replacement interest rate (the “Replacement Rate”), in which case, the Replacement Rate shall, subject to the next two sentences, replace such applicable interest rate for all purposes under the Loan Documents unless and until (A) an event described in Section 3.7(a)(i), (a)(ii), (c)(i), (c)(ii) or (c)(iii) occurs with respect to the Replacement Rate or (B) the Required Lenders (directly, or through the Administrative Agent) notify the Borrower that the Replacement Rate does not adequately and fairly reflect the cost to the Lenders of funding the Term Loans bearing interest at the Replacement Rate.  In connection with the establishment and application of the Replacement Rate, this Agreement and the other Loan Documents shall be amended solely with the consent of the Administrative Agent and the Borrower, 

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as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect the provisions of this Section 3.7(c).  Notwithstanding anything to the contrary in this Agreement or the other Loan Documents (including, without limitation, Section 11.2), such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five (5) Business Days of the delivery of such amendment to the Lenders, written notices from such Lenders that in the aggregate constitute Required Lenders, with each such notice stating that such Lender objects to such amendment (which such notice shall note with specificity the particular provisions of the amendment to which such Lender objects).  To the extent the Replacement Rate is approved by the Administrative Agent in connection with this clause (c), the Replacement Rate shall be applied in a manner consistent with market practice; provided that, in each case, to the extent such market practice is not administratively feasible for the Administrative Agent, such Replacement Rate shall be applied as otherwise reasonably determined by the Administrative Agent (it being understood that any such modification by the Administrative Agent shall not require the consent of, or consultation with, any of the Lenders).
(d)    Illegality.  If, in any applicable jurisdiction, the Administrative Agent or any Lender determines that any Applicable Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for the Administrative Agent or any Lender to (i) perform any of its obligations hereunder or under any other Loan Document, (ii) to fund or maintain its participation in any Term Loan or (iii) make, maintain, fund or charge interest or fees with respect to any Term Loans, such Person shall promptly notify the Administrative Agent, then, upon the Administrative Agent notifying the Borrower, and until such notice by such Person is revoked, any obligation of such Person to make, maintain, fund or charge interest or fees with respect to any such Term Loan shall be suspended, and to the extent required by Applicable Law, cancelled.  Upon receipt of such notice, the Loan Parties shall, (A) repay that Person’s participation in the Term Loans or other applicable Obligations on the last day of the Interest Period for each Term Loan or other Obligation occurring after the Administrative Agent has notified the Borrower or, if earlier, the date specified by such Person in the notice delivered to the Administrative Agent (being no earlier than the last day of any applicable grace period permitted by Applicable Law) and (B) take all reasonable actions requested by such Person to mitigate or avoid such illegality.
Section 3.8    Indemnity.  The Borrower hereby indemnifies each of the Lenders against any loss or expense (including any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain a LIBOR Rate Loan or from fees payable to terminate the deposits from which such funds were obtained) which may arise or be attributable to each Lender’s obtaining, liquidating or employing deposits or other funds acquired to effect, fund or maintain any Term Loan (a) as a consequence of any failure by the Borrower to make any payment when due of any amount due hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrower to borrow or continue a LIBOR Rate Loan or convert to a LIBOR Rate Loan on a date specified therefor in a Notice of Borrowing or a Notice of Conversion/Continuation or (c) due to any payment, prepayment or conversion of any LIBOR Rate Loan on a date other than the last day of the Interest Period therefor.  The amount of such loss or expense shall be determined, in the applicable Lender’s sole discretion, based upon the assumption that such Lender funded its Ratable Share of the LIBOR Rate Loans in the London interbank market and using any reasonable attribution or averaging methods which such Lender deems appropriate and practical.  A certificate of such Lender setting forth the basis for determining such amount or amounts necessary to compensate such Lender shall be forwarded to the Borrower through the Administrative Agent and shall be conclusively presumed to be correct save for error.
Section 3.9    Increased Costs.
(a)    Increased Costs Generally.  If any Change in Law shall:
(i)    impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or advances, loans or other credit extended or participated in by, any Lender (except any reserve requirement reflected in the LIBOR Rate);
(ii)    subject any Recipient to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto; or
(iii)    impose on any Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting this Agreement or LIBOR Rate Loans made by such Lender;

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and the result of any of the foregoing shall be to increase the cost to such Lender or such other Recipient of making, converting to, continuing or maintaining any Term Loan (or of maintaining its obligation to make any such Term Loan) or to reduce the amount of any sum received or receivable by such Lender such other Recipient hereunder (whether of principal, interest or any other amount) then, upon written request of such Lender or other Recipient, the Borrower shall pay to any such Lender or other Recipient, as the case may be, such additional amount or amounts as will compensate such Lender or other Recipient, as the case may be, for such additional costs incurred or reduction suffered.
(b)    Capital Requirements.  If any Lender determines that any Change in Law affecting such Lender or any Lending Office of such Lender or such Lender’s holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Term Loans made by such Lender to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law (taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy and liquidity), then from time to time upon written request of such Lender the Borrower shall pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender’s holding company for any such reduction suffered.
(c)    Certificates for Reimbursement.  A certificate of a Lender or such other Recipient setting forth the amount or amounts necessary to compensate such Lender, such other Recipient or any of their respective holding companies, as the case may be, as specified in paragraph (a) or (b) of this Section and delivered to the Borrower, shall be conclusive absent manifest error.  The Borrower shall pay such Lender or such other Recipient, as the case may be, the amount shown as due on any such certificate within ten (10) Business Days after receipt thereof.
(d)    Delay in Requests.  Failure or delay on the part of any Lender or such other Recipient to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or such other Recipient’s right to demand such compensation; provided that the Borrower shall not be required to compensate any Lender or any other Recipient pursuant to this Section for any increased costs incurred or reductions suffered more than six (6) months prior to the date that such Lender or such other Recipient, as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs or reductions, and of such Lender’s or such other Recipient’s intention to claim compensation therefor (except that if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof).
Section 3.10    Taxes.
(a)    Defined Terms.  For purposes of this Section 3.10, the term “Applicable Law” includes FATCA.
(b)    Payments Free of Taxes.  Any and all payments by or on account of any obligation of any Loan Party under any Loan Document shall be made without deduction or withholding for any Taxes, except as required by Applicable Law.  If any Applicable Law (as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax from any such payment by a Withholding Agent, then the applicable Withholding Agent 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 the applicable Loan Party 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), the applicable Recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. 
(c)    Payment of Other Taxes by the Loan Parties.  The Loan Parties shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.
(d)    Indemnification by the Loan Parties.  The Loan Parties shall jointly and severally indemnify each Recipient, 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 Recipient or required to be withheld or deducted from a payment to such Recipient and any 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.  A certificate as to the amount of such payment or liability delivered to the Borrower 

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by a Recipient (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of a Recipient, shall be conclusive absent manifest error.  
(e)    Indemnification by the Lenders.  Each Lender shall severally indemnify the Administrative Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Loan Parties to do so), (ii) any Taxes attributable to such Lender’s failure to comply with the provisions of Section 11.9(d) relating to the maintenance of a Participant Register and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Loan Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such 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 any Lender by the Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby authorizes the Administrative Agent to setoff and apply any and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this paragraph (e). 
(f)    Evidence of Payments.  As soon as practicable after any payment of Taxes by any Loan Party to a Governmental Authority pursuant to this Section 3.10, such Loan Party shall deliver to the Administrative Agent 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 Administrative Agent.
(g)    Status of Lenders.
(i)    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 the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding.  In addition, any Lender, if reasonably requested by the Borrower or the Administrative Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent 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 Sections 3.10(g)(ii)(A), (ii)(B), and (ii)(D) below) 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.
(ii)    Without limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person:
(A)    any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or about the date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies 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 the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or about the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), 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 copies of IRS Form W-8BEN or IRS Form W-8BEN-E 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 or IRS Form W-8BEN-E establishing an exemption from, 

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or reduction of, United States federal withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;
(2)    executed copies 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 the 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 copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or
(4)    to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax 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 the Borrower and the Administrative Agent (in such number of copies as shall be requested by the recipient) on or about the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies 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 the Borrower or the Administrative Agent 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 the Borrower and the Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent 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 the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent 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, if any, 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 the Borrower and the Administrative Agent in writing of its legal inability to do so.
(h)    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 3.10 (including by the payment of additional amounts pursuant to this Section 3.10), 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 paragraph (h) (plus any penalties, interest or other charges imposed by the relevant 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 paragraph (h), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this paragraph (h) the payment of which would place the indemnified 

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party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.  This paragraph 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.
(i)    Survival.  Each party’s obligations under this Section 3.10 shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.
Section 3.11    Mitigation Obligations; Replacement of Lenders.
(a)    Designation of a Different Lending Office.  If any Lender requests compensation under Section 3.9 or requires any Loan Party to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.10, then such Lender shall (at the request of such Loan Party) use reasonable efforts to designate a different Lending Office for funding or booking its Term Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.9 or Section 3.10, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.
(b)    Replacement of Lenders.  If any Lender requests compensation under Section 3.9 or if any Loan Party is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 3.10, and, in each case, such Lender has declined or is unable to designate a different Lending Office in accordance with Section 3.11(a), or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 11.9), all of its interests, rights (other than its existing rights to payments pursuant to Section 3.9 or Section 3.10) and obligations under this Agreement and the related Loan Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that:
(i)    the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in Section 11.9;
(ii)    such Lender shall have received payment of an amount equal to the outstanding principal of any of its Term Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents (including any amounts under Section 3.8) from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts); 
(iii)    in the case of any such assignment resulting from a claim for compensation under Section 3.9 or payments required to be made pursuant to Section 3.10, such assignment will result in a reduction in such compensation or payments thereafter;
(iv)    such assignment does not conflict with Applicable Law; and
(v)    in the case of any assignment resulting from  a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.
A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.
(c)    Selection of Lending Office. Subject to Section 3.11(a), each Lender may make Term Loans to the Borrower through any Lending Office, provided that the exercise of this option shall not affect the obligations of the Borrower to repay the Term Loans in accordance with the terms of this Agreement or otherwise alter the rights of the parties hereto.

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Section 3.12    Incremental Term Loan.
(a)    At any time, the Borrower may by written notice to the Administrative Agent elect to request the establishment of one or more incremental term loan commitments (any such incremental term loan commitment, an “Incremental Term Loan Commitment”) to make one or more additional term loans, including a borrowing of an additional term loan the principal amount of which will be added to the outstanding principal amount of the Initial Term Loan (any such additional term loan, an “Incremental Term Loan”); provided that (1) the total aggregate initial principal amount (as of the date of incurrence thereof) of such requested Incremental Term Loan Commitments and Incremental Term Loans shall not exceed $150,000,000 and (2) the total aggregate amount for each Incremental Term Loan Commitment (and the Incremental Term Loans made thereunder) shall not be less than a minimum principal amount of $10,000,000 or any whole multiple of $1,000,000 in excess thereof or, if less, the remaining amount permitted pursuant to the foregoing clause (1).  Each such notice shall be open only for acceptance by the Lenders for a period of ten (10) Business Days from the date on which the Administrative Agent receives such notice (the “Offer Period”) and shall specify the proposed date (each, an “Increased Amount Date”) on which the Borrower proposes that any Incremental Term Loan Commitment shall be effective, which shall be a date not less than ten (10) Business Days after the date on which such notice is delivered to Administrative Agent (or such later date as may be approved by the Administrative Agent).
(b)    The allocation of the Incremental Term Loan Commitments shall first be requested from the existing Lenders in the same proportion that the Term Loan Exposure held by each Lender bears to the aggregate Term Loan Exposures of all Lenders. Each existing Lender that is willing to provide all or part of such Incremental Term Loan Commitments shall confirm its commitment to do so by delivering an executed Incremental Term Loan Commitments confirmation notice to the Borrower and the Administrative Agent by no later than the last day of the Offer Period.  
(c)    If, following receipt of the confirmations referred to in paragraph (b) above, there remains a portion of the Incremental Term Loan Commitments that the existing Lenders have not agreed to provide, the Borrower may, at its discretion, seek commitments from any other Eligible Assignee to provide all or part of the Incremental Term Loan Commitments shortfall, but no such Eligible Assignee shall be paid a fee in respect of its Incremental Term Loan Commitment at a rate that is higher than any fee paid to any existing Lender in connection with their Incremental Term Loan Commitments.  Any existing Lender or other Person that is an Eligible Assignee that agrees to provide an Incremental Commitment (each, an “Incremental Lender”) shall be subject to the consent (in each case, not to be unreasonably withheld, conditioned or delayed) of the Administrative Agent. Any proposed Incremental Lender offered or approached to provide all or a portion of any Incremental Term Loan Commitment may elect or decline, in its sole discretion, to provide such Incremental Term Loan Commitment or any portion thereof.  
(d)    Any Incremental Term Loan Commitment shall become effective as of such Increased Amount Date; provided that each of the following conditions has been satisfied or waived as of such Increased Amount Date:
(i)    no Default or Event of Default shall exist on such Increased Amount Date immediately prior to or immediately after giving effect to (1) any Incremental Term Loan Commitment, (2) the making of any Incremental Term Loans pursuant thereto;
(ii)    the Administrative Agent and the Lenders shall have received from the Borrower a Compliance Certificate demonstrating, in form and substance reasonably satisfactory to the Administrative Agent, that the Borrower is in compliance with the financial covenants set forth in Section 7.12, both immediately before and after giving effect to any Incremental Term Loan or Incremental Term Loan Commitment (and the application of proceeds of any Incremental Term Loan pursuant thereto), determined on a pro forma basis as if such transactions had occurred on the date of the financial statements most recently delivered pursuant to Section 6.1);
(iii)    each of the representations and warranties contained in Article V shall be true and correct in all material respects, except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true, correct and complete in all respects, on such Increased Amount Date with the same effect as if made on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct as of such earlier date);
(iv)    the proceeds of any Incremental Term Loans  shall be used for general corporate purposes of the Borrower and its Subsidiaries, including investments and acquisitions permitted under this Agreement;

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(v)    each Incremental Term Loan Commitment (and the Incremental Term Loans made thereunder) shall constitute Obligations of the Borrower and shall be guaranteed with the other Term Loans on a pari passu basis; 
(vi)    all terms and conditions applicable to such Incremental Term Loan shall, except to the extent otherwise provided in this Section 3.12, be identical to the terms and conditions applicable to the Initial Term Loan (except that customary commitment fees may be payable in respect of any Incremental Term Loan Commitments which permit delayed draws), and the Incremental Term Loans shall be deemed to be Term Loans;
(vii)    such Incremental Term Loan Commitments shall be effected pursuant to one or more Lender Joinder Agreements executed and delivered by the Borrower, the Administrative Agent and the applicable Incremental Lenders (which Lender Joinder Agreements may, with the consent of the Borrower, the Administrative Agent and such Incremental Lenders (but without the need to obtain the consent of any other Lenders), effect such amendments to this Agreement and the other Loan Documents as may be necessary or appropriate to effect the provisions of this Section 3.12); and
(viii)    the Borrower shall deliver or cause to be delivered any customary documents (including, without limitation, a resolution duly adopted by the board of directors (or equivalent governing body) of each Loan Party authorizing such Incremental Term Loans and/or Incremental Term Loan Commitments and, if requested by the Administrative Agent and Incremental Lenders, legal opinions) as may be reasonably requested by Administrative Agent in connection with any such transaction.
(e)    On any Increased Amount Date on which any Incremental Term Loan Commitment becomes effective, subject to the foregoing terms and conditions, each Incremental Lender with an Incremental Term Loan Commitment shall make, or be severally obligated to make, an Incremental Term Loan to the Borrower in an amount equal to its Incremental Term Loan Commitment and shall become a Lender hereunder with respect to such Incremental Term Loan Commitment and the Incremental Term Loan made pursuant thereto.
Section 3.13    Defaulting Lenders.
(a)    Defaulting Lender Adjustments.  Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:
(i)    Waivers and Amendments.  Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of Required Lenders and Section 11.2.
(ii)    Defaulting Lender Waterfall.  Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VIII or otherwise) or received by the Administrative Agent from a Defaulting Lender pursuant to Section 11.4 shall be applied at such time or times as may be determined by the Administrative Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; second, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Term Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; third, if so determined by the Administrative Agent and the Borrower, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to any Term Loan under this Agreement; fourth, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; fifth, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; and sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided that if (1) such payment is a payment of the principal amount of any Term Loans in respect of which such Defaulting Lender has not fully funded its appropriate share, and (2) such Term Loans were made at a time when the conditions set forth in Section 4.2 were satisfied or waived, such payment shall be applied solely to pay the Term Loans of all Non-Defaulting Lenders on a pro rata basis 

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prior to being applied to the payment of any Term Loans of such Defaulting Lender until such time as all Term Loans are held by the Lenders pro rata in accordance with their original Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender pursuant to this Section 3.13(a)(ii) shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.
(b)    Defaulting Lender Cure.  If the Borrower and the Administrative Agent agree in writing that a Lender is no longer a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein, such Lender will, to the extent applicable, purchase at par that portion of outstanding Term Loans of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Term Loans to be held pro rata by the Lenders in accordance with their original Commitments, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.
ARTICLE IV
CONDITIONS OF CLOSING AND BORROWING
Section 4.1    Conditions to Closing and Initial Term Loan.  The obligation of the Lenders to close this Agreement and to make the Initial Term Loan is subject to the satisfaction of each of the following conditions:
(a)    Executed Loan Documents.  This Agreement and a Term Loan Note in favor of each Lender requesting a Term Loan Note, together with any other applicable Loan Documents, shall have been duly authorized, executed and delivered to the Administrative Agent by the parties thereto, shall be in full force and effect and no Default or Event of Default shall exist hereunder or thereunder.
(b)    Closing Certificates; Etc.  The Administrative Agent shall have received each of the following in form and substance reasonably satisfactory to the Administrative Agent:
(i)    Officer’s Certificate.  A certificate from a Responsible Officer of the Borrower to the effect that (A) all representations and warranties of the Loan Parties contained in this Agreement and the other Loan Documents are true and correct in all material respects (except to the extent any such representation and warranty is qualified by materiality or reference to Material Adverse Effect, in which case, such representation and warranty shall be true and correct in all respects); (B) after giving effect to the making of the Initial Term Loan, no Default or Event of Default has occurred and is continuing; (C) since December 31, 2017, no event has occurred or condition arisen, either individually or in the aggregate, that has had or could reasonably be expected to have a Material Adverse Effect; and (D)  each of the Loan Parties, as applicable, has satisfied each of the conditions set forth in Section 4.1 and Section 4.2 as of the Closing Date.
(ii)    Certificate of Secretary of each Loan Party.  A certificate of a Responsible Officer of each Loan Party certifying as to the incumbency and genuineness of the signature of each officer of such Loan Party executing Loan Documents to which it is a party and certifying that attached thereto is a true, correct and complete copy of (A) the articles or certificate of incorporation or formation (or equivalent), as applicable, of such Loan Party and all amendments thereto, certified as of a recent date by the appropriate Governmental Authority in its jurisdiction of incorporation, organization or formation (or equivalent), as applicable, (B) the bylaws or other governing document of such Loan Party as in effect on the Closing Date, (C) resolutions duly adopted by the board of directors (or other governing body) of such Loan Party authorizing and approving the transactions contemplated hereunder and the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party, and (D) each certificate required to be delivered pursuant to Section 4.1(b)(iii).
(iii)    Certificates of Good Standing.  Certificates as of a recent date of the good standing of each Loan Party under the laws of its jurisdiction of incorporation, organization or formation (or equivalent), as applicable.

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(iv)    Opinions of Counsel.  Opinions of counsel to the Loan Parties addressed to the Administrative Agent and the Lenders with respect to the Loan Parties, the Loan Documents and such other matters as the Administrative Agent shall reasonably request (which such opinions shall expressly permit reliance by permitted successors and assigns of the Administrative Agent and the Lenders).
(c)    Consents; Defaults.
(i)    Governmental and Third Party Approvals.  The Loan Parties shall have received all material governmental, shareholder and third party consents and approvals necessary in connection with the transactions contemplated by this Agreement and the other Loan Documents.
(ii)    No Injunction, Etc.  No action, proceeding or investigation shall have been instituted, threatened or proposed before any Governmental Authority to enjoin, restrain, or prohibit, or to obtain substantial damages in respect of, or which is related to or arises out of this Agreement or the other Loan Documents or the consummation of the transactions contemplated hereby.
(d)    Payment at Closing.  The Loan Parties shall have paid (i) to the Arrangers and the Administrative Agent, the fees required under the Fee Letters to be paid on the Closing Date, in the amounts due and payable on the Closing Date as required by the terms thereof, (ii) to the Administrative Agent, the initial payment of the annual administrative fee described in the Administrative Agency Fee Letter, and (iii) all other fees and reasonable expenses of the Arrangers, the Administrative Agent and the Lenders required hereunder or under any other Loan Document to be paid on or prior to the Closing Date (including reasonable and documented fees and expenses of counsel) in connection with this Agreement, the other Loan Documents and the transactions contemplated hereby.
(e)    Miscellaneous.
(i)    Notice of Account Designation. The Administrative Agent shall have received a Notice of Account Designation specifying the account or accounts to which the proceeds of any Term Loans made on or after the Closing Date are to be disbursed.
(ii)    PATRIOT Act, etc.  The Loan Parties shall have provided to the Administrative Agent and the Lenders the documentation and other information requested by the Administrative Agent in order to comply with requirements of any Anti-Money Laundering Laws, including, without limitation, the PATRIOT Act and any applicable “know your customer” rules and regulations.
(iii)    Beneficial Ownership Certification.  Any Loan Party that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation shall have delivered a Beneficial Ownership Certification in relation to such Loan Party.
(iv)    Other Documents.  All opinions, certificates and other instruments and all proceedings in connection with the transactions contemplated by this Agreement shall be satisfactory in form and substance to the Administrative Agent.  The Administrative Agent shall have received copies of all other documents, certificates and instruments reasonably requested thereby, with respect to the transactions contemplated by this Agreement.
Without limiting the generality of the provisions of Section 9.3, for purposes of determining compliance with the conditions specified in this Section 4.1, the Administrative Agent and each Lender that has signed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.
Section 4.2    Conditions to all Term Loans.  The obligations of the Lenders to make any Term Loans (including the Initial Term Loan and any Incremental Term Loans) are subject to the satisfaction of each of the following conditions precedent on the relevant borrowing date:
(a)    Continuation of Representations and Warranties.  The representations and warranties contained in this Agreement and the other Loan Documents shall be true and correct in all material respects, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects, on and as of such borrowing date with the same 

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effect as if made on and as of such date (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, which such representation and warranty shall be true and correct in all respects as of such earlier date).
(b)    No Existing Default.  No Default or Event of Default shall have occurred and be continuing on the borrowing date with respect to such Term Loan or after giving effect to the Term Loans to be made on such date.
(c)    Notices.  The Administrative Agent shall have received a Notice of Borrowing from the Borrower as required hereunder.
ARTICLE V
REPRESENTATIONS AND WARRANTIES OF THE LOAN PARTIES
To induce the Administrative Agent and Lenders to enter into this Agreement and to induce the Lenders to make Term Loans, the Loan Parties hereby represent and warrant to the Administrative Agent and the Lenders both immediately before and immediately after giving effect to the transactions contemplated hereunder, which representations and warranties shall be deemed made on the Closing Date and as otherwise set forth in Section 4.2, that:
Section 5.1    Existence, Qualification and Power.  Each Loan Party and each of its Subsidiaries (a) is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its obligations under the Loan Documents to which it is a party, and (c) is duly qualified and is licensed and, as applicable, in good standing under the Laws of each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification or license, except, in each case referred to in clause (a) (other than with respect to each Loan Party), (b)(i) or (c), to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.
Section 5.2    Authorization; No Contravention.  The execution, delivery and performance by each Loan Party of each Loan Document to which it is party have been duly authorized by all necessary corporate or other organizational action, and do not and will not (a) contravene the terms of its Organizational Documents, (b) conflict with or result in any breach or contravention of, or the creation of any Lien under, or require any payment to be made under (i) any material Contractual Obligation to which any Loan Party is a party or affecting any Loan Party or the properties of any Loan Party or any Subsidiary of a Loan Party or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which any Loan Party or any Subsidiary of a Loan Party or its property is subject or (c) violate any Law.
Section 5.3    Governmental Authorization; Other Consents.  No approval, consent, exemption, 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 the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, except for such approvals, consents, exemptions, authorizations, actions or notices that have been duly obtained, taken or made and in full force and effect.
Section 5.4    Execution and Delivery; Binding Effect.  This Agreement has been, and each other Loan Document, when delivered hereunder, will have been, duly executed and delivered by each Loan Party. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other Laws affecting creditors’ rights generally and by general principles of equity.
Section 5.5    Financial Statements; No Material Adverse Effect.  
(a)    Financial Statements. The Audited Financial Statements were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and 

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their results of operations and cash flows for the period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein. The unaudited consolidated balance sheet of the Borrower and its Subsidiaries and the related consolidated statements of income or operations, Shareholders' Equity and cash flows for the fiscal quarter ended on September 30, 2018 were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations and cash flows for the period covered thereby, subject to the absence of notes and to normal year-end audit adjustments.
(b)    No Material Adverse Change. Since the date of the Audited Financial Statements, there has been no event or circumstance that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.
Section 5.6    Litigation.  There are no actions, suits, proceedings, claims, disputes or investigations pending or, to the knowledge of any Loan Party, threatened, at Law, in equity, in arbitration or before any Governmental Authority, by or against any Loan Party or any Subsidiary of a Loan Party or against any of their properties or revenues that (a) if adversely determined, either individually or in the aggregate could reasonably be expected to have a Material Adverse Effect or (b) purport to affect or pertain to this Agreement or any other Loan Document or any of the transactions contemplated hereby.
Section 5.7    No Material Adverse Effect; No Default.  Neither any Loan Party nor any Subsidiary thereof is in default under or with respect to any Contractual Obligation that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the consummation of the transactions contemplated by this Agreement or any other Loan Document.
Section 5.8    Property.  
(a)    Ownership of Properties. Each Loan Party and its Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title that, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
(b)    Intellectual Property. Each Loan Party and its Subsidiaries owns, licenses or possesses the right to use all of the trademarks, tradenames, service marks, trade names, copyrights, patents, franchises, licenses and other intellectual property rights that are necessary for the operation of their respective businesses, as currently conducted, business, and the use thereof by each Loan Party and its Subsidiaries does not conflict with the rights of any other Person, except to the extent that such failure to own, license or possess or such conflicts, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. The conduct of the business of each Loan Party or any of its Subsidiaries as currently conducted or as contemplated to be conducted does not infringe upon or violate any rights held by any other Person, except to the extent that such infringements and violations, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. No claim or litigation regarding any of the foregoing is pending or, to the knowledge of any Loan Party, threatened that, if adversely determined, could reasonably be expected to have a Material Adverse Effect.
Section 5.9    Taxes. 
(a)    Each Loan Party and its Subsidiaries have filed all federal, state and other tax returns and reports required to be filed, and have paid all federal, state and other taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or assets otherwise due and payable, except (i) Taxes that are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves are being maintained in accordance with GAAP or (ii) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.
(b)    Each Loan Party is resident for Tax purposes only in the country of its incorporation.
Section 5.10    Disclosure.  
(a)    Each Loan Party has disclosed to the Administrative Agent and the Lenders all agreements, instruments and corporate or other restrictions to which that Loan Party or any of its Subsidiaries is subject, and all 

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other matters known to it, that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. The reports, financial statements, certificates and other written information (other than projected or pro forma financial information) furnished by or on behalf of any Loan Party to any Agent or any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any other Loan Document (as modified or supplemented by other information so furnished), taken as a whole, do not contain any material misstatement of fact or omit to state any material fact necessary to make the statements therein (when taken as a whole), in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected or pro forma financial information, each Loan Party represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time of preparation and delivery (it being understood that such projected information may vary from actual results and that such variances may be material).
(b)    As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.
Section 5.11    Compliance with Laws.  Each of the Loan Parties and its Subsidiaries is in compliance with the requirements of all Laws (including Environmental Laws) and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to so comply, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.
Section 5.12    ERISA Compliance.  
(a)    Except as could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect, (i) each Plan is in compliance with the applicable provisions of ERISA, the Code and other federal or state Laws and (ii) each Plan that is intended to be a qualified plan under Section 401(a) of the Code has received a favorable determination letter from the IRS to the effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the IRS to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently being processed by the IRS, or the Plan is covered by an opinion issued to a pre-approved plan document sponsor, and, to the knowledge of any Loan Party, nothing has occurred that would prevent or cause the loss of such tax-qualified status.
(b)    There are no pending or, to the knowledge of any Loan Party, threatened or contemplated claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that, either individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.
(c)    No ERISA Event has occurred, and neither any Loan Party nor any ERISA Affiliate is aware of any fact, event or circumstance that, either individually or in the aggregate, could reasonably be expected to constitute or result in an ERISA Event with respect to any Pension Plan that, either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.
(d)    The present value of all accrued benefits under each Pension Plan (based on those assumptions used to fund such Pension Plan) did not, as of the last annual valuation date prior to the date on which this representation is made or deemed made, exceed the value of the assets of such Pension Plan allocable to such accrued benefits by an amount that would have a Material Adverse Effect.
(e)    To the extent applicable, each Foreign Plan has been maintained in compliance with its terms and with the requirements of any and all applicable requirements of Law and has been maintained, where required, in good standing with applicable regulatory authorities, except to the extent that the failure so to comply could not reasonably be expected, either individually or in the aggregate, to have a Material Adverse Effect. Neither the Borrower nor any of its Subsidiaries has incurred any material obligation in connection with the termination of or withdrawal from any Foreign Plan. The present value of the accrued benefit liabilities (whether or not vested) under each Foreign Plan that is funded, determined as of the end of the most recently ended fiscal year of the Borrower or its Subsidiaries, as applicable, on the basis of actuarial assumptions, each of which is reasonable, did not exceed the current value of the property of such Foreign Plan by a material amount, and for each Foreign Plan that is not funded, the obligations of such Foreign Plan are properly accrued.

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Section 5.13    Environmental Matters.  Except with respect to any matters that, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, neither the Borrower nor any of its Subsidiaries (a) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (b) knows of any basis for any permit, license or other approval required under any Environmental Law to be revoked, canceled, limited, terminated, modified, appealed or otherwise challenged, (c) has or could reasonably be expected to become subject to any Environmental Liability, (d) has received notice of any claim, complaint, proceeding, investigation or inquiry with respect to any Environmental Liability (and no such claim, complaint, proceeding, investigation or inquiry is pending or, to the knowledge of the Borrower, is threatened or contemplated) or (e) knows of any facts, events or circumstances that could give rise to any basis for any Environmental Liability of the Borrower or any of its Subsidiaries.
Section 5.14    Margin Regulations.  No Loan Party is engaged or will engage, principally or as one of its important activities, in the business of purchasing or carrying Margin Stock, or extending credit for the purpose of purchasing or carrying Margin Stock, and no part of the proceeds of any Term Loan hereunder will be used to buy or carry any Margin Stock. Following the application of the proceeds of each Term Loan, not more than 25% of the value of the assets (either of the Borrower only or of the Group on a consolidated basis) will be Margin Stock.
Section 5.15    Net Worth.  On the date of this Agreement, the Consolidated Net Worth of the Borrower is not less than the amount required under Section 7.12(a).
Section 5.16    Investment Company Act.  Neither the Borrower nor any of its Subsidiaries is an “investment company” as defined in, or subject to regulation under, the Investment Company Act.
Section 5.17    Center of Main Interests and Establishments.  In relation to each Loan Party incorporated in a member state of the European Union, for the purposes of The Council of the European Union Regulation No. 1346/2000 on Insolvency Proceedings (the "Regulation"), its center of main interest (as that term is used in Article 3(1) of the Regulation) is situated in its jurisdiction of incorporation and it has no "establishment" (as that term is used in Article 2(h) of the Regulations) in any other jurisdiction.
Section 5.18    Sanctions; Anti-Corruption.
(a)    None of the Borrower, any of its Subsidiaries or any director, officer, employee, agent, or affiliate of the Borrower or any of its Subsidiaries is an individual or entity (“person”) that is, or is owned or controlled by persons that are: (i) the subject of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”), the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, the Bermuda Monetary Authority, the Australian government or other relevant sanctions authority (collectively, “Sanctions”), or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions (including, Crimea, Cuba, Iran, North Korea and Syria).
(b)    The Borrower, its Subsidiaries and their respective directors, officers and employees and, to the knowledge of the Borrower, the agents of the Borrower and its Subsidiaries, are in compliance with all applicable Sanctions and with the Bribery Act 2010 of the United Kingdom, the Foreign Corrupt Practices Act of 1977 and the PATRIOT Act, each as amended, and the rules and regulations thereunder (the “FCPA”, the “Bribery Act” and the PATRIOT Act respectively) and any other applicable anticorruption and anti-money laundering law. None of the Borrower, its Subsidiaries and their respective directors, officers and employees and, to the knowledge of the Borrower, the agents of the Borrower and its Subsidiaries, are under investigation by any Governmental Authority for an alleged breach of Sanctions, the Bribery Act, the FCPA, the PATRIOT Act or any other applicable anti-corruption or anti-money laundering law. The Borrower and its Subsidiaries have instituted and maintain policies and procedures designed to promote and achieve continued compliance with applicable Sanctions, the Bribery Act, the FCPA, the PATRIOT Act and any other applicable anti-corruption and anti-money laundering laws.
Section 5.19    Solvency.  Each Loan Party is Solvent.
Section 5.20    Group Structure Chart.  As of the date stated in the Group Structure Chart, the Group Structure Chart is true complete and accurate in all material respects.
Section 5.21    Ownership.  Each of the Guarantors is a direct or indirect Wholly-Owned Subsidiary of the Borrower.

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Section 5.22    EEA Financial Institution.  No Loan Party is an EEA Financial Institution.
ARTICLE VI
AFFIRMATIVE COVENANTS
Until the Commitments have expired or been terminated and all Obligations shall have been paid in full, each Loan Party covenants and agrees with the Lenders that:  
Section 6.1    Financial Statements.  The Borrower will procure that each Loan Party furnish to the Administrative Agent for distribution to each Lender:
(a)    as soon as available, and in any event within 120 days (or 75 days in respect of the Borrower) after the end of each of its fiscal years (or, if earlier, 5 days after the date required to be filed with the SEC) (commencing with the fiscal year ended December 31, 2018), (i) a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal year and the related consolidated statements of income or operations, Shareholders' Equity and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, audited and accompanied by a report and opinion of independent public accountants of nationally recognized standing, which report and opinion shall be prepared in accordance with generally accepted auditing standards (and shall not be subject to any “going concern” or like qualification, exception or explanatory paragraph or any qualification, exception or explanatory paragraph as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition, results of operations, Shareholders' Equity and cash flows of the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, and (ii) the management prepared financial statements of each Loan Party other than the Borrower as at the end of such fiscal year and the related statements of income or operations, shareholders' equity and cash flows for such fiscal year of such Loan Party setting forth in each case in comparative form the figures for the previous fiscal year, to the effect that such management prepared financial statements present fairly in all material respects the financial condition, results of operations, shareholders' equity and cash flows of such Loan Party in accordance with GAAP consistently applied;
(b)    as soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower (or, if earlier, 5 days after the date required to be filed with the SEC) (commencing with the fiscal quarter ended March 31, 2019):
(i)    a consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, the related consolidated statements of income or operations, Shareholders' Equity and cash flows for such fiscal quarter and for the portion of the Borrower’s fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, certified by a Financial Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations, Shareholders’ Equity and cash flows of the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject only to normal year-end audit adjustments and the absence of notes; and
(ii)    management prepared financial statements of each Loan Party other than the Borrower as at the end of such fiscal quarter, the related statements of income or operations, shareholders' equity and cash flows for such fiscal quarter and for the portion of such Loan Party's fiscal year then ended, in each case setting forth in comparative form, as applicable, the figures for the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, certified by a Financial Officer of such Loan Party as fairly presenting in all material respects the financial condition, results of operations, shareholders' equity and cash flows of such Loan Party in accordance with GAAP consistently applied, subject only to normal year-end audit adjustments and the absence of notes; and
(c)    as soon as it is available, but in any event within 120 days after the end of each fiscal year of the Borrower, an actuarial report of the Group (on a consolidated basis) on the sufficiency of its consolidated loss and loss adjustment expense reserves, which report shall be prepared by the Group's duly qualified internal team of actuaries.
Section 6.2    Certificates; Other Information.  The Borrower will deliver to the Administrative Agent for distribution to each Lender:

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(a)    concurrently with the delivery of the financial statements referred to in Section 6.1(a) and Section 6.1(b), a duly completed certificate signed by a Responsible Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 7.12 and (iii) setting forth a calculation of the guarantor coverage ratio set forth in Section 6.15;
(b)    promptly after the same are publicly available, copies of each annual report, proxy or financial statement or other report or communication sent to the shareholders of the Borrower, and copies of all annual, regular, periodic and special reports and registration statements that the Borrower or any Subsidiary may file or be required to file with the SEC or any Governmental Authority succeeding to any or all of the functions of the SEC, or with any national securities exchange, and not otherwise required to be delivered pursuant hereto;
(c)    promptly after the furnishing thereof, copies of any material request or notice received by the Borrower or any Subsidiary, or any statement or report furnished by the Borrower or any Subsidiary to any holder of debt securities of the Borrower or any Subsidiary, pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished pursuant hereto;
(d)    promptly after receipt thereof by the Borrower or any Subsidiary, copies of each notice or other correspondence received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction) concerning any investigation or possible investigation or other similar inquiry by such agency regarding financial or other operational results of the Borrower or any Subsidiary thereof; and
(e)    promptly following any request therefor, (i) such other information regarding the operations, business or financial condition of the Borrower or any Subsidiary, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender (through the Administrative Agent) may from time to time reasonably request; or (ii) information and documentation reasonably requested by the Administrative Agent or any Lender for purposes of compliance with applicable “know your customer” requirements under the Bribery Act, the FCPA, the PATRIOT Act or other applicable anti-money laundering laws.
Documents required to be delivered pursuant to Section 6.1(a), Section 6.1(b) or Section 6.2(b) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (i) on which such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such documents are posted on the Borrower’s behalf on an internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent); provided that the Borrower shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such documents.
Section 6.3    Notices.  The Borrower will promptly notify the Administrative Agent and each Lender of:
(a)    the occurrence of any Default;
(b)    the filing or commencement of any action, suit, investigation or proceeding by or before any arbitrator or Governmental Authority against or affecting any Loan Party or any Affiliate thereof, including pursuant to any applicable Environmental Laws, that could reasonably be expected to be adversely determined, and, if so determined, could reasonably be expected to have a Material Adverse Effect;
(c)    the occurrence of any ERISA Event that, either individually or together with any other ERISA Events, could reasonably be expected to have a Material Adverse Effect;
(d)     notice of any action arising under any Environmental Law or of any noncompliance by any Loan Party or any Subsidiary with any Environmental Law or any permit, approval, license or other authorization required thereunder that, if adversely determined, could reasonably be expected to have a Material Adverse Effect;
(e)    any material change in accounting or financial reporting practices by any Loan Party;
(f)    any change in the Credit Ratings from a Credit Rating Agency, or the placement by a Credit Rating Agency of any Loan Party on a “CreditWatch” or “WatchList” or any similar list, in each case with negative implications, or the cessation by a Credit Rating Agency of, or its intent to cease, rating any Loan Party’s debt; and

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(g)    any matter or development that has had or could reasonably be expected to have a Material Adverse Effect.
Each notice delivered under this Section 6.3 shall be accompanied by a statement of a Responsible Officer of the relevant Loan Party setting forth the details of the occurrence requiring such notice and stating what action the relevant Loan Party has taken and proposes to take with respect thereto.
Section 6.4    Preservation of Existence, Etc.  Each Loan Party will, and will cause each of its Subsidiaries to, (a) preserve, renew and maintain in full force and effect its legal existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 7.3 or Section 7.4; (b) take all reasonable action to maintain all rights, licenses, permits, privileges and franchises necessary or desirable in the normal conduct of its business, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade names and service marks, the non-preservation of which could reasonably be expected to have a Material Adverse Effect.
Section 6.5    Maintenance of Properties.  Each Loan Party will, and will cause each of its Subsidiaries to, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect, (a) maintain, preserve and protect all of its properties and equipment necessary in the operation of its business in good working order and condition (ordinary wear and tear excepted) and (b) make all necessary repairs thereto and renewals and replacements thereof
Section 6.6    Maintenance of Insurance.  Each Loan Party will, and will cause each of its Subsidiaries to, 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 the relevant Loan Party and its Subsidiaries) as are customarily carried under similar circumstances by such Persons.   
Section 6.7    Payment of Obligations.  Each Loan Party will, and will cause each of its Subsidiaries to, pay, discharge or otherwise satisfy as the same shall become due and payable, all of its obligations and liabilities, including Tax liabilities, unless the same are being contested in good faith by appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the relevant Loan Party or such Subsidiary, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.
Section 6.8    Compliance with Laws.  Each Loan Party will, and will cause each of its Subsidiaries to, comply with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.
Section 6.9    Environmental Matters.  Except to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect, each Loan Party will, and will cause each of its Subsidiaries to, (a) comply with all Environmental Laws, (b) obtain, maintain in full force and effect and comply with any permits, licenses or approvals required for the facilities or operations of such Loan Party or any of its Subsidiaries, and (c) conduct and complete any investigation, study, sampling or testing, and undertake any corrective, cleanup, removal, response, remedial or other action necessary to identify, report, remove and clean up all Hazardous Materials present or released at, on, in, under or from any of the facilities or real properties of such Loan Party or any of its Subsidiaries.
Section 6.10    Books and Records.  Each Loan Party will, and will cause each of its Subsidiaries to, maintain proper books of record and account, in which full, true and correct entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of such Loan Party or such Subsidiary, as the case may be.
Section 6.11    Inspection Rights.  Each Loan Party will, and will cause each of its Subsidiaries to, permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the reasonable expense of such Loan Party and at such reasonable times during normal business hours and as often as may be reasonably requested; provided that, other than with respect to such visits and inspections during the continuation of an Event of Default, (a) only the Administrative Agent on behalf of the Lender may exercise rights under 

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this Section 6.11 and (b) the Administrative Agent shall not exercise such rights more often than two times during any calendar year; provided, further, that when an Event of Default exists the Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing under this Section at the expense of such Loan Party and at any time during normal business hours and without advance notice.
Section 6.12    Use of Proceeds.  The Borrower will, and will cause each of its Subsidiaries to, use the proceeds of the Term Loans for general corporate purposes of the Group, including investments and acquisitions permitted under this Agreement, not in contravention of any Law or of any Loan Document.
Section 6.13    Sanctions; Anti-Corruption Laws.  Each Loan Party will maintain in effect policies and procedures designed to promote compliance by such Loan Party, its Subsidiaries, and their respective directors, officers, employees, and agents with applicable Sanctions and with the Bribery Act, the FCPA and any other applicable anti-corruption and anti-money laundering laws.
Section 6.14    Bermuda Solvency Coverage Ratio.  The Borrower shall ensure at all times that the Group Enhanced Capital Resources exceed 100 percent of the Group Enhanced Capital Requirement.
Section 6.15    Guarantors.  The Borrower shall ensure at all times after the Closing Date that Guarantors with positive Net Worth shall have an aggregate Net Worth (excluding the Borrower and calculated quarterly on a consolidated basis) of not less than 80% of Consolidated Net Worth of the Borrower. This covenant shall be tested quarterly at the end of each fiscal quarter. If, based on the financial statements most recently delivered pursuant to Section 6.1(a) or Section 6.1(b) the aggregate Net Worth of Guarantors with positive Net Worth (excluding the Borrower and calculated quarterly on a consolidated basis) is not at least 80% of the Consolidated Net Worth of Borrower, then within 30 days of delivery of such financial statements the Borrower shall either (a) take such action as it deems appropriate to increase the Net Worth of the Guarantors so that the foregoing requirement is satisfied or (b) cause such other members of the Group to become Guarantors such that the foregoing requirement is satisfied, and in each case deliver evidence of such compliance to the Administrative Agent. Subject to compliance with any client identification or know-your-customer requirements the Administrative Agent or the Lenders may have, the Borrower may request that any of its Wholly-Owned Subsidiaries become a Guarantor hereunder by delivering an executed counterpart of a Guarantor Joinder Agreement or comparable guaranty documentation reasonably satisfactory to the Administrative Agent within ten (10) Business Days of becoming aware of that the test set out in this Section 6.15 is not or will not be met (or such longer time period agreed to by the Administrative Agent in its reasonable discretion) (it being understood that such Guarantor Joinder Agreement or comparable guaranty documentation shall be accompanied by documentation with respect thereto substantially consistent with the documentation delivered pursuant to Section 4.1(b)(ii)-(iii)). If requested by the Administrative Agent, the Administrative Agent shall receive an opinion or opinions of counsel for the Borrower in form and substance reasonably satisfactory to the Administrative Agent in respect of matters reasonably requested by the Administrative Agent relating to any such Guarantor Joinder Agreement or comparable guaranty documentation delivered pursuant to this Section 6.15, dated as of the date of such Guarantor Joinder Agreement or comparable guaranty documentation. 
ARTICLE VII
NEGATIVE COVENANTS
Until the Commitments have expired or been terminated and all Obligations have been paid in full, each Loan Party covenants and agrees with the Lenders that: 
Section 7.1    Indebtedness.  No Loan Party will, nor will it permit any Subsidiary to, create, incur, assume or suffer to exist any Indebtedness, except:
(a)    Indebtedness under the Loan Documents;
(b)    Indebtedness outstanding on the date hereof and listed on Schedule 7.1 and any refinancings, refundings, renewals or extensions thereof; provided that the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing commitments unutilized thereunder;

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(c)    Guarantees: (i) of any Loan Party or any Subsidiary in respect of Indebtedness otherwise permitted hereunder of such Loan Party or any Wholly-Owned Subsidiary; (ii) given in respect of netting or set-off arrangements permitted pursuant to Section 7.2(m); (iii) given by the Borrower in the ordinary course of its insurance business excluding, for the avoidance of doubt, any Guarantee of Indebtedness which Indebtedness is not otherwise permitted under this Section 7.1; and (iv) not otherwise permitted hereunder made in the ordinary course of business in an aggregate amount not exceeding $100,000,000, provided that no new Guarantees of Indebtedness will be permitted at any time after the occurrence of a Default which is continuing, other than Guarantees of Indebtedness provided in the ordinary course of trading by members of the Group which are not Loan Parties;
(d)    obligations (contingent or otherwise) of a Loan Party or any Subsidiary existing or arising under any Swap Contract entered into in compliance with Section 7.17:  
(e)    Indebtedness of any Person that becomes a Subsidiary after the date hereof; provided that such Indebtedness (i) exists at the time such Person becomes a Subsidiary and is not created or increased or has its maturity date extended (other than by the waiver of any applicable change of control provision) in contemplation of, or in connection with, or since such Person becoming a Subsidiary and (ii) remains outstanding for a period of no more than six months following that acquisition; 
(f)    Indebtedness in respect of performance bonds, bid bonds, appeal bonds, surety bonds and completion guarantees and similar obligations not in connection with money borrowed, in each case provided in the ordinary course of business, including those incurred to secure health, safety and environmental obligations in the ordinary course of business; 
(g)    Indebtedness (i) resulting from a bank or other financial institution honoring a check, draft or similar instrument in the ordinary course of business or (ii) arising under or in connection with cash management services in the ordinary course of business;
(h)    Acquisition SPV Indebtedness in an aggregate principal amount not exceeding 25% of Consolidated Net Worth at any time outstanding;
(i)    Indebtedness incurred pursuant to any letter of credit or its equivalent in the ordinary course of business;
(j)    other Indebtedness of any member of the Group that is not a Loan Party in an aggregate principal amount for all such Indebtedness under this paragraph (j) not exceeding 5% of Consolidated Net Worth at any time outstanding; 
(k)    the Revolving Credit Facility; and
(l)    other Indebtedness of a Loan Party that would not cause a breach of Section 7.12 and which is unsecured and ranks pari passu with, or is subordinated to, any rights or claims of the Lenders under any of the Loan Documents.
Section 7.2    Liens.  No Loan Party will, nor will it permit any Subsidiary to, create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, other than the following:
(a)    Liens existing on the date hereof and listed on Schedule 7.2 and any renewals or extensions thereof, provided that (i) the property covered thereby is not changed, (ii) the amount secured or benefited thereby is not increased except as contemplated by Section 7.1(b), (iii) the direct or any contingent obligor with respect thereto is not changed and (iv) any renewal or extension of the obligations secured or benefited thereby is permitted by Section 7.1(b);
(b)    Liens for Taxes not yet due or that 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 in accordance with GAAP; 
(c)    carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course of business that are not overdue for a period of more than 30 days or that are being contested in good 

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faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the applicable Person;
(d)    pledges or deposits in the ordinary course of business in connection with (i) workers’ compensation, unemployment insurance and other social security legislation, other than any Lien imposed by ERISA, and (ii) public utility services provided to a Loan Party or a Subsidiary;
(e)    deposits to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business;
(f)    easements, rights-of-way, restrictions and other similar encumbrances affecting real property that, in the aggregate, are not substantial in amount, and that do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person, and 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 a Loan Party and its Subsidiaries;
(g)    Liens securing judgments for the payment of money not constituting an Event of Default under Section 8.1(j);
(h)    any Lien existing on any property or asset prior to the acquisition thereof by a Loan Party or any Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of, in connection with or since such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary and (iii) such Lien shall secure only those obligations that it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof and (iv) such Lien is removed or discharged within six months of such acquisition or such Person becoming a Subsidiary except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such extension, renewal, or replacement;
(i)    Liens (i) of a collecting bank arising under Section 4-210 of the Uniform Commercial Code on items in the course of collection, and (ii) in favor of a banking institution arising as a matter of law encumbering deposits (including the right of setoff) that are customary in the banking industry;
(j)    any interest or title of a lessor, sublessor, licensor or sublicensor under leases or licenses permitted by this Agreement that are entered into in the ordinary course of business;
(k)    leases, licenses, subleases or sublicenses granted to others in the ordinary course of business that do not (i) interfere in any material respect with the ordinary conduct of the business of the Borrower and its Subsidiaries, or (ii) secure any Indebtedness;
(l)    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;
(m)    any netting or set-off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of members of the Group but only so long as (A) such arrangement does not permit credit balances of Loan Parties to be netted or set-off against debit balances of members of the Group which are not Loan Parties and (B) such arrangement does not give rise to other Lien over the assets of Loan Parties in support of liabilities of members of the Group which are not Loan Parties;
(n)     Liens provided by an Acquisition SPV to the provider of any credit facilities constituting Acquisition SPV Indebtedness over all or part of the assets of that Acquisition SPV or any limited recourse Liens provided by any Holding Company of an Acquisition SPV over all or part of the Equity Interests or other ownership interests held in that Acquisition SPV;
(o)    Liens created by a member of the Group in support of a letter of credit or its equivalent in the ordinary course of business of the relevant member of the Group;

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(p)    Liens arising by virtue of trust arrangements, withheld balances, administrative accounts, or any other collateral or security arrangements incurred in connection with any Policies, Reinsurance Agreements or related agreements in the ordinary course of business or capital support agreements or any other agreements by the Loan Parties in support of the capital of any Insurance Subsidiary, or guarantees or any other agreements by the Loan Parties guaranteeing the obligations of any Insurance Subsidiary under any Policies or Reinsurance Agreements in each case entered into in the ordinary course of business; and
(q)    Liens securing Indebtedness and other obligations in an aggregate amount not exceeding 2.5% of Consolidated Net Worth at any time outstanding.
Section 7.3    Fundamental Changes.  No Loan Party will, nor will it permit any Subsidiary to, merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no Default exists or would result therefrom:
(a)    any Subsidiary may merge with (i) a Loan Party, provided that a Loan Party shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries (other than a Loan Party), provided that when any Wholly-Owned Subsidiary is merging with another Subsidiary, a Wholly-Owned Subsidiary shall be the continuing or surviving Person; 
(b)    any Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to a Loan Party or to another Subsidiary; provided that if the transferor in such a transaction is a Wholly-Owned Subsidiary, then the transferee shall either be a Loan Party or another Wholly-Owned Subsidiary and if the transferor is a Loan Party, then the transferee shall be a Loan Party;
(c)    a Loan Party and its Subsidiaries may make Dispositions permitted by Section 7.4;
(d)    any Investment permitted by Section 7.6 may be structured as a merger, consolidation or amalgamation; and
(e)    any Subsidiary may dissolve, liquidate or wind up its affairs if it owns no material assets, engages in no business and otherwise has no activities other than activities related to the maintenance of its existence and good standing.
Section 7.4    Dispositions.  No Loan Party will, and will not permit any Subsidiary to, make any Disposition or enter into any agreement to make any Disposition, except:
(a)    Dispositions of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business;
(b)    Dispositions of inventory and Investments in the ordinary course of business (other than Equity Interests of Subsidiaries, lines of business, real property or intellectual property);
(c)    Dispositions of assets (other than Equity Interests of Subsidiaries, lines of business, real property or intellectual property) to the extent that such assets are exchanged for other assets comparable or superior as to type, value and quality;
(d)    Dispositions of property by (i) any Wholly-Owned Subsidiary (which is not itself a Loan Party) to a Loan Party or to another Wholly-Owned Subsidiary, (ii) any Subsidiary (which is not itself a Loan Party or a Wholly-Owned Subsidiary) to a Loan Party or to another Subsidiary or (iii) a Loan Party to another Loan Party or a Wholly-Owned Subsidiary;
(e)    Dispositions of property as a result of a casualty event involving such property or any Disposition of real property to a Governmental Authority as a result of a condemnation of such real property;
(f)    Dispositions of assets (other than cash) to an Acquisition SPV;
(g)    Dispositions permitted by Section 7.3;

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(h)    Dispositions of intellectual property rights that are no longer used or useful in the business of a Loan Party and its Subsidiaries;
(i)    Restricted Payments permitted by Section 7.5 and Investments permitted by Section 7.6;
(j)    Dispositions of all or part of any Investments acquired after the date of this Agreement provided that such disposal is completed within 180 days of that acquisition;
(k)    Dispositions of assets by a Loan Party and its Subsidiaries, including Insurance Subsidiaries, in connection with an Insurance Contract, Reinsurance Agreement or any related agreement, in each case in the ordinary course of business; and
(l)    Dispositions by a Loan Party and its Subsidiaries not otherwise permitted under this Section; provided that the aggregate book value of all property Disposed of pursuant to this clause (l) in any fiscal year shall not exceed 2.5% of Consolidated Net Worth of the Borrower.
Section 7.5    Restricted Payments.  Borrower will not declare or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that:
(a)    the Borrower may declare and make dividend payments or other distributions payable solely in Equity Interests of the Borrower; 
(b)    the Borrower may purchase, redeem or otherwise acquire Equity Interests issued by it with the proceeds received from the substantially concurrent issue of new common Equity Interests;
(c)    the Borrower may (i) declare or pay cash dividends to its shareholders and (ii) purchase, redeem or otherwise acquire for cash its Equity Interests if no Default or Event of Default exists either before or after giving effect thereto; and
(d)    the Borrower may pay withholding or similar taxes payable by any future, present or former employee, director or officer (or any spouses, former spouses, successors, executors, administrators, heirs, legatees or distributees of any of the foregoing) in connection with any repurchases of Equity Interests or the exercise of stock options.
Section 7.6    Investments.  No Loan Party will, and will not permit any Subsidiary to, make any Investments, except:
(a)    Investments held by a Loan Party or such Subsidiary in the form of Cash Equivalents;
(b)    (i) Investments in Subsidiaries in existence on the Closing Date, and (ii) other Investments in existence on the Closing Date and identified on Schedule 7.6, and any refinancing, refunding, renewal or extension of any such Investment that does not increase the amount thereof except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing, refunding, renewal or extension;
(c)    Investments of any Loan Party in any Subsidiary and Investments of any Subsidiary in any Loan Party or in another Subsidiary;
(d)    Investments consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss;
(e)    Investments consisting of the indorsement by any Loan Party or any Subsidiary of negotiable instruments payable to such Person for deposit or collection in the ordinary course of business;
(f)    to the extent constituting an Investment, transactions otherwise permitted by Section 7.1, Section 7.3, and Section 7.5;

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(g)    any acquisition (A) by a member of the Group other than a Loan Party of a company, entity, business or undertaking (or in each case, any interest in any of them) or (B) by a Loan Party of a company or entity (or in each case any interest in any of them), in each case:
(i)    which either (y) holds (or after giving effect to the transaction or series of transactions contemplated therewith, will hold) more than 50 percent of its assets in or generates more than 50 percent of its revenues from the insurance, reinsurance, asset management or insurance broking sectors or (z) for which the majority of the liabilities of the company, entity, business or undertaking consists of direct exposure from legacy operations to claims in lines of business in the Group's portfolio of existing non-life run-off liabilities; and
(ii)    whose gross assets would represent in aggregate less than 25 percent of the pro forma consolidated total assets (in each case determined in accordance with GAAP) of the Group immediately following such acquisition,
provided, that, (1) for any such acquisition by a member of the Group other than a Loan Party, such acquisition may be effected by (x) acquisition of all or a portion of the Equity Interests (y) subject to compliance with Section 7.3, by way of a merger or (z) an acquisition of new business effected through a portfolio transfer or reinsurance transaction, and (2) for any such acquisition by a Loan Party, such acquisition may be effected by acquisition of all or a portion of the Equity Interests of such company or entity.
(h)    the incorporation or formation of a company as a Subsidiary;
(i)    any acquisition by a member of the Group of an Equity Interest from another member of the Group to the extent that the disposal of such Equity Interest is not otherwise restricted by Section 7.4;
(j)    Investments in accordance with the investment policy of the Borrower and its Subsidiaries as approved by the board of directors (or a committee thereof) of the Borrower from time to time; and
(k)    Investments not otherwise permitted under this Section; provided that the aggregate fair value of all Investments pursuant to this clause (k) in any fiscal year shall not exceed 2.5% of the Consolidated Net Worth of the Borrower.
Section 7.7    Transactions with Affiliates.  Each Loan Party will not, and will not permit any Subsidiary to, enter into any transaction of any kind with any Affiliate of a Loan Party, whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to such Loan Party or such Subsidiary as would be obtainable by such Loan Party or such Subsidiary at the time in a comparable arm’s-length transaction with a Person other than an Affiliate; provided that the foregoing restriction shall not apply to (a) transactions between or among the Loan Parties and any of their Wholly-Owned Subsidiaries or between and among any Wholly-Owned Subsidiaries, (b) Restricted Payments permitted by Section 7.5 and (c) Investments permitted by Section 7.6(b), (c) or (d).
Section 7.8    Certain Restrictive Agreements.  Except for limitations imposed by the Loan Documents and the Revolving Credit Facility Documents or pursuant to any applicable laws, rules or regulations of any Governmental Authority or other insurance regulatory body, each Loan Party will not, and will not permit any Subsidiary to, enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that, directly or indirectly, limits the ability of (a) any Subsidiary to make Restricted Payments to a Loan Party or to otherwise transfer property to a Loan Party, (b) any Subsidiary to Guarantee Indebtedness of a Loan Party or (c) a Loan Party or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person to secure the Obligations; provided that this clause (c) shall not prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted under Section 7.1 solely to the extent that any such negative pledge relates to the property financed by or the subject of such Indebtedness; provided, further, that this clause (c) shall not prohibit any provision in a joint venture agreement limiting Liens on equity interests in such joint venture so long as (i) such provision applies only to such joint venture and the equity interests in such joint venture, and (ii) with respect to any joint venture subject to such a covenant limiting Liens on the equity interests in such joint venture and entered into by a Loan Party or Subsidiary after August 16, 2018 (a “Prospective JV”), (1) the aggregate amount of Investments in such Prospective JV by the Loan Parties and Subsidiaries after August 16, 2018 does not exceed 10.0% of the Consolidated Net Worth of the Borrower, and (2) the aggregate amount of Investments in all Prospective JVs by the Loan Parties and Subsidiaries does not exceed 20.0% of the Consolidated Net Worth of the Borrower (it being understood and agreed that (x) clause (1) above shall be tested each time a Loan Party or Subsidiary makes an Investment in a Prospective JV after August 16, 2018 on a 

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pro forma basis after giving effect to such Investment, (y) clause (2) above shall be tested each time a Loan Party or Subsidiary makes an Investment in a Prospective JV after August 16, 2018 on a pro forma basis after giving effect to such Investment, and (z) the amount of any Investment in a Prospective JV will be determined immediately following the most recent Investment in such joint venture by any Loan Party or Subsidiary and shall equal the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment and net of any dividends, distributions or other returns of capital or repayments of principal received in respect of such Investment or the proceeds of any Dispositions received in respect of such Investment.  For purposes of the foregoing, any joint venture separately named in a writing delivered by the Borrower to the Administrative Agent shall not be deemed to be a Prospective JV upon the written consent of the Required Lenders.
Section 7.9    Changes in Fiscal Periods.  Each Loan Party will not permit the last day of its fiscal year to end on a day other than December 31 or change any Loan Party’s method of determining its fiscal quarters.
Section 7.10    Changes in Nature of Business.  Each Loan Party will not, and will not permit any Subsidiary to, engage to any material extent in any business other than those businesses conducted by such Loan Party and its Subsidiaries on the date hereof or any business reasonably related or incidental thereto or representing a reasonable expansion thereof.
Section 7.11    Restriction on Use of Proceeds.  The Borrower will not use the proceeds of any Term Loan, whether directly or indirectly, and whether immediately, incidentally or ultimately, to purchase or carry Margin Stock, or to extend credit to others for the purpose of purchasing or carrying Margin Stock or to refund indebtedness originally incurred for such purpose.
Section 7.12    Financial Covenants.
(a)    Borrower Net Worth.  The Consolidated Net Worth of the Borrower shall at all times not be less than the aggregate of:
(i)    $ 2,300,000,000; plus
(ii)    50.0% of the net income available for distribution to common shareholders of the Borrower at any time after August 16, 2018; plus
(iii)    50.0% of the proceeds of any common stock issuance of the Borrower made after August 16, 2018.
(b)    Gearing Ratio.  The Consolidated Financial Indebtedness of the Borrower shall not at any time be more than 35.0% of the Total Capital.
(c)    The financial covenants in this Section 7.12 shall be in effect at all times but shall be tested on each Quarter Date commencing with the first Quarter Date after the Closing Date. The financial covenants set out in Section 7.12(a) and Section 7.12(b) shall be calculated in accordance with GAAP and, in each case, shall be tested first by reference to the quarterly consolidated balance sheet and related financial statements and, where available, by reference to the annual consolidated balance sheet and related financial statements (each delivered in accordance with Section 6.1(a) and Section 6.1(b)(i) respectively). No item shall be deducted or credited more than once in any such calculation. Where an amount in any financial statement is not denominated in Dollars, it shall be converted into Dollars at the rate specified in the financial statements so long as such rate has been set in accordance with GAAP.
Section 7.13    Sanctions; Anti-Corruption; Use of Proceeds.  Each Loan Party will not, directly or indirectly, use the proceeds of the Term Loans, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, (a) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of the Bribery Act, the FCPA or any other applicable anti-corruption law, or (b) (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is, or whose government is, the subject of Sanctions, or (ii) in any other manner that would result in a violation of Sanctions by any Person (including any Person participating in the Loans, whether as an Agent, an Arranger, a Lender, an underwriter, an advisor, an investor or otherwise).

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Section 7.14    Bermuda Private Act.  No Loan Party will become subject to a Private Act which, in the reasonable determination of the Administrative Agent, would be adverse in any material respect to the rights or interests of the Lenders.
Section 7.15    Share Capital.  No Loan Party (other than the Borrower) will issue any Equity Interests except to another Loan Party.
Section 7.16    Amendments.  No Loan Party shall amend its Organizational Documents in a way that could reasonably be expected to materially and adversely affect the interests of the Lenders.
Section 7.17    Swap Contracts.  No Loan Party will enter into any Swap Contract for speculative purposes.
ARTICLE VIII
DEFAULT AND REMEDIES
Section 8.1    Events of Default.  If any of the following events (each, an “Event of Default”) shall occur:
(a)    any Loan Party shall fail to pay any principal of any Term Loan when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise;
(b)    any Loan Party shall fail to pay (i) any interest on any Term Loan, when the same shall become due and payable, and such failure shall continue unremedied for a period of three or more Business Days, or (ii) any fee or other amount due and payable under this Agreement or under any other Loan Document (other than an amount referred to in clause (a) of this Section 8.1), when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five or more Business Days;
(c)    any representation or warranty made or deemed made by or on behalf of a Loan Party in or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, or in any report, certificate, financial statement or other document furnished pursuant to or in connection with this Agreement or any other Loan Document or any amendment or modification hereof or thereof, or any waiver hereunder or thereunder, shall prove to have been incorrect in any material respect (or, in the case of any such representation or warranty under this Agreement or any other Loan Document already qualified by materiality, such representation or warranty shall prove to have been incorrect) when made or deemed made;
(d)    any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Section 6.1, Section 6.2, Section 6.3(a), Section 6.4 (with respect to any Loan Party’s existence), Section 6.12, Section 6.13, Section 7.4 to Section 7.6 (inclusive) or Section 7.9 to Section 7.16 (inclusive);
(e)    any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in this Agreement or any other Loan Document (other than those specified in clause (a), (b) or (d) of this Section) and such failure shall continue unremedied for a period of 10 or more Business Days after the earlier of notice thereof by the Administrative Agent to the Borrower or a Loan Party becoming aware of the failure to comply;
(f)    any Loan Party or any Subsidiary shall fail to observe or perform any agreement or condition relating to any Indebtedness (other than Indebtedness under the Loan Documents) having an aggregate principal amount of more than $75,000,000 or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event is to cause, or to permit the holder or holders or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving of notice if required, such Indebtedness to become due or to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity; provided that this clause (f) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness, if such sale or transfer is permitted hereunder and under the documents providing for such Indebtedness and such Indebtedness is repaid when required under the documents providing for such documents;
(g)    an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization, rehabilitation, conservatorship, delinquency or other relief in respect of any Loan Party or any of its Material Subsidiaries or its debts, or of a substantial part of its assets, under any Debtor Relief Law now or 

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hereafter in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or any of its Material Subsidiaries or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for a period of 45 or more days or an order or decree approving or ordering any of the foregoing shall be entered;
(h)    any Loan Party or any of its Material Subsidiaries shall (i) voluntarily commence any proceeding or file any petition seeking liquidation, reorganization or other relief under any Debtor Relief Law now or hereafter in effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (g) of this Section, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for any Loan Party or any of its Material Subsidiaries or for a substantial part of its assets, (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 or (vi) take any action for the purpose of effecting any of the foregoing;
(i)    any Loan Party or any of its Material Subsidiaries shall become unable, admit in writing its inability or fail generally to pay its debts as they become due;
(j)    there is entered against any Loan Party or any Subsidiary (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding $75,000,000 (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect;
(k)    an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has resulted or could reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount that could reasonably be expected to have a Material Adverse Effect;
(l)    a Change of Control shall occur or a Loan Party (other than the Borrower) ceases to be a Wholly-Owned Subsidiary of the Borrower;
(m)    the cessation, variation or imposition of limitations (for any reason) of any consent, authorization, license and/or exemption which is required to enable the Borrower or any Subsidiary to carry on its business, or the taking by any governmental, regulatory or other authority of any action in relation to the Borrower or any Subsidiary which is reasonably likely to have a Material Adverse Effect, save that no Event of Default under this Section 8.1(m) will occur if the failure to comply is capable of remedy and is remedied within 20 Business Days of the earlier of (i) the Administrative Agent giving notice to the Borrower and (ii) the Borrower becoming aware of the failure to comply;
(n)    any fine, levy or sanctions are imposed upon any member of the Group by the Bermuda Monetary Authority, the PRA or the FCA or by any equivalent regulatory authority in any other jurisdiction or under the Financial Services and Markets Act 2000 of the United Kingdom or any equivalent legislation or regulation in any other jurisdiction which is reasonably likely to have a Material Adverse Effect;
(o)    the Guaranty or any other material provision of this Agreement or any other Loan Document, at any time after its execution and delivery and for any reason other than as expressly permitted hereunder or thereunder or satisfaction in full of all Obligations, ceases to be in full force and effect; or any Loan Party or any other Person contests in writing the validity or enforceability of any provision of any Loan Document; or Loan Party denies in writing that it has any or further liability or obligation under any Loan Document to which it is a party, or purports in writing to revoke, terminate or rescind any such Loan Document;
then, and in every such event (other than an event described in clause (g) or (h) of this Section), and at any time thereafter during the continuance of such event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to the Borrower, take any or all of the following actions, at the same or different times:
(i)    terminate the Commitments, and thereupon the Commitments shall terminate immediately;

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(ii)    declare the Term Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Term Loans so declared to be due and payable, together with accrued interest thereon and all fees and other Obligations of the Loan Parties accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Loan Parties; and/or
(iii)    exercise on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents and Applicable Law;
provided that, in case of any event with respect to a Loan Party or a Material Subsidiary described in clause (g) or (h) of this Section, the Commitments shall automatically terminate and the principal of the Term Loans then outstanding, together with accrued interest thereon and all fees and other Obligations accrued hereunder, shall automatically become due and payable, in each case without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Loan Parties.
Section 8.2    Application of Payments.  Notwithstanding anything herein to the contrary, following the occurrence and during the continuance of an Event of Default, and notice thereof to the Administrative Agent by the Borrower or the Required Lenders, all payments received on account of the Obligations shall, subject to Section 3.13, shall be applied by the Administrative Agent as follows:
(a)    first, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including reasonable and documented fees and disbursements and other charges of counsel payable under Section 11.3 and amounts payable under the Administrative Agency Fee Letter) payable to the Administrative Agent in its capacity as such;
(b)    second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest) payable to the Lenders (including reasonable and documented fees and disbursements and other charges of counsel payable under Section 11.3) arising under the Loan Documents, ratably among them in proportion to the respective amounts described in this clause (b) payable to them;
(c)    third, to payment of that portion of the Obligations constituting accrued and interest on the Term Loans, ratably among the Lenders in proportion to the respective amounts described in this clause (c) payable to them;
(d)    fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans, ratably among the Lenders in proportion to the respective amounts described in this clause (d) payable to them;
(e)    fifth, to the payment in full of all other Obligations, in each case ratably among the Administrative Agent, the Lenders based upon the respective aggregate amounts of all such Obligations owing to them in accordance with the respective amounts thereof then due and payable; and
(f)    finally, the balance, if any, after all Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by Law.
Section 8.3    Rights and Remedies Cumulative; Non-Waiver; etc.
(a)    The enumeration of the rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or hereafter exist at law or in equity or by suit or otherwise.  No delay or failure to take action on the part of the Administrative Agent or any Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default.  No course of dealing between the Borrower, the Administrative Agent and the Lenders or their respective agents or employees shall be effective to change, modify or discharge any provision of this Agreement or any of the other Loan Documents or to constitute a waiver of any Event of Default.

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(b)    Notwithstanding anything to the contrary contained herein or in any other Loan Document, the authority to enforce rights and remedies hereunder and under the other Loan Documents against the Loan Parties or any of them 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 Administrative Agent in accordance with Section 8.1 for the benefit of all the Lenders; provided that the foregoing shall not prohibit (a) the Administrative Agent from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its capacity as Administrative Agent) hereunder and under the other Loan Documents, (b) any Lender from exercising setoff rights in accordance with Section 11.4 (subject to the terms of Section 3.6), or (c) any Lender from filing proofs of claim or appearing and filing pleadings on its own behalf during the pendency of a proceeding relative to any Loan Party under any Debtor Relief Law; and provided, further, that if at any time there is no Person acting as Administrative Agent hereunder and under the other Loan Documents, then (i) the Required Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to Section 8.1 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the preceding proviso and subject to Section 3.6, any Lender may, with the consent of the Required Lenders, enforce any rights and remedies available to it and as authorized by the Required Lenders.
ARTICLE IX
THE ADMINISTRATIVE AGENT
Section 9.1    Appointment and Authority.
(a)    Each of the Lenders hereby irrevocably appoints Wells Fargo to act on its behalf as the Administrative Agent hereunder and under the other Loan Documents and authorizes the Administrative Agent to take such actions on its behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto.  Except as otherwise provided in Section 9.6(b), the provisions of this Article are solely for the benefit of the Administrative Agent and the Lenders, and no Loan Party or other Person shall have any rights as a third-party beneficiary of any of such provisions.  It is understood and agreed that the use of the term “agent” herein or in any other Loan Documents (or any other similar term) with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only an administrative relationship between contracting parties.
Section 9.2    Rights as a Lender.  The Person serving as the Administrative 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 Administrative Agent and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person serving as the Administrative Agent hereunder in its individual capacity.  Such Person and its Affiliates may accept deposits from, 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 the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder and without any duty to account therefor to the Lenders.
Section 9.3    Exculpatory Provisions.
(a)    The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties hereunder and thereunder shall be administrative in nature.  Without limiting the generality of the foregoing, the Administrative 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 that the Administrative 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 the other Loan Documents), provided that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law, including for the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect a forfeiture, modification or termination of property of a Defaulting Lender in violation of any Debtor Relief Law; and

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(iii)    shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Loan Party or any of their respective Subsidiaries or Affiliates that is communicated to or obtained by the Person serving as the Administrative Agent or any of its Affiliates in any capacity.
(b)    The Administrative 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 Administrative Agent shall believe in good faith shall be necessary, under the circumstances as provided in Section 8.1 and Section 11.2) 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 Administrative 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 Administrative Agent in writing by a Loan Party or a Lender.
(c)    The Administrative 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 Article IV or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent.
Section 9.4    Reliance by the Administrative Agent.  The Administrative 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 Administrative 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 Term Loan that by its terms must be fulfilled to the satisfaction of a Lender, the Administrative Agent may presume that such condition is satisfactory to such Lender unless the Administrative Agent shall have received notice to the contrary from such Lender prior to the making of such Term Loan. The Administrative Agent may consult with legal counsel (who may be counsel for any Loan Party), 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 9.5    Delegation of Duties.  The Administrative 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 Administrative Agent.  The Administrative 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 Article shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the Credit Facility as well as activities as Administrative Agent.  The Administrative Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of competent jurisdiction determines in a final and nonappealable judgment that the Administrative Agent acted with gross negligence or willful misconduct in the selection of such sub‐agents.
Section 9.6    Resignation of Administrative Agent.
(a)    The Administrative Agent may at any time give notice of its resignation to the Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which shall be a bank with an office in New York, or an Affiliate of any such bank with an office in New York.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after the retiring Administrative Agent gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders) (the “Resignation Effective Date”), then the retiring Administrative Agent may (but shall not be obligated to), on behalf of the Lenders, appoint a successor Administrative Agent meeting the qualifications set forth above; provided that in no event shall any such successor Administrative Agent be a Defaulting Lender.  Whether or not a successor has been appointed, such resignation shall become effective in accordance with such notice on the Resignation Effective Date.

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(b)    If the Person serving as Administrative Agent is a Defaulting Lender pursuant to clause (d) of the definition thereof, the Required Lenders may, to the extent permitted by Applicable Law, by notice in writing to the Borrower and such Person, remove such Person as Administrative Agent and, in consultation with the Borrower, appoint a successor.  If no such successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days (or such earlier day as shall be agreed by the Required Lenders) (the “Removal Effective Date”), then such removal shall nonetheless become effective in accordance with such notice on the Removal Effective Date.
(c)    With effect from the Resignation Effective Date or the Removal Effective Date (as applicable), (i) the retiring or removed Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Loan Documents and (ii) except for any indemnity payments owed to the retiring or removed Administrative Agent, all payments, communications and determinations provided to be made by, to or through the Administrative Agent shall instead be made by or to each Lender directly, until such time, if any, as the Required Lenders appoint a successor Administrative Agent as provided for above.  Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Administrative Agent (other than any rights to indemnity payments owed to the retiring or removed Administrative Agent), and the retiring or removed Administrative Agent shall be discharged from all of its duties and obligations hereunder or under the other Loan Documents.  The fees payable by the Loan Parties to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Loan Parties and such successor.  After the retiring or removed Administrative Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this Article and Section 11.3 shall continue in effect for the benefit of such retiring or removed Administrative 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 or removed Administrative Agent was acting as Administrative Agent.
Section 9.7    Non-Reliance on Administrative Agent and Other Lenders.  Each Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender or any of their 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.  Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender or any of their 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.
Section 9.8    No Other Duties, Etc.  Anything herein to the contrary notwithstanding, none of the syndication agents, documentation agents, co-agents, arrangers or bookrunners listed on the cover page hereof shall have any powers, duties or responsibilities under this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the Administrative Agent or a Lender hereunder.
Section 9.9    Administrative Agent May File Proofs of Claim.  In case of the pendency of any proceeding under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether any Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the Loan Parties) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:
(a)    to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Term Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under Section 3.3 and Section 11.3) allowed in such judicial proceeding; and
(b)    to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances 

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of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under Section 3.3 and Section 11.3.  Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender or any Arranger any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or any Arranger or to authorize the Administrative Agent to vote in respect of the claim of any Lender or any Arranger in any such proceedings.
Section 9.10    Certain ERISA Matters.  
(a)    Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of any Loan Party, that at least one of the following is and will be true:
(i)    such Lender is not using “plan assets” (within the meaning of Section 3(42) of ERISA or otherwise) of one or more Benefit Plans with respect to such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments or this Agreement,
(ii)    the transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts), PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement, 
(iii)    (A) such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into, participate in, administer and perform the Term Loans, the Commitments and this Agreement, (C) the entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement, or
(iv)    such other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion, and such Lender.
(b)    In addition, unless either (1) sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative Agent and not, for the avoidance of doubt, to or for the benefit of any Loan Party, that the Administrative Agent is not a fiduciary with respect to the assets of such Lender involved in such Lender’s entrance into, participation in, administration of and performance of the Term Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement, any Loan Document or any documents related hereto or thereto).
ARTICLE X
GUARANTY
Section 10.1    Guaranty of the Obligations.  The Guarantors hereby jointly and severally guarantee the due and punctual Payment in Full of all Obligations when the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed Obligations”).

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Section 10.2    Contribution by Guarantors.  All Guarantors desire to allocate among themselves (collectively, the “Contributing Guarantors”), in a fair and equitable manner, their obligations arising under this Guaranty. Accordingly, in the event any payment or distribution is made on any date by a Guarantor (a “Funding Guarantor”) under this Guaranty such that its Aggregate Payments exceeds its Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution from each of the other Contributing Guarantors in an amount sufficient to cause each Contributing Guarantor’s Aggregate Payments to equal its Fair Share as of such date. “Fair Share” means, with respect to a Contributing Guarantor as of any date of determination, an amount equal to (a) the ratio of (i) the Fair Share Contribution Amount with respect to such Contributing Guarantor to (ii) the aggregate of the Fair Share Contribution Amounts with respect to all Contributing Guarantors multiplied by (b) the aggregate amount paid or distributed on or before such date by all Funding Guarantors under this Guaranty in respect of the Guaranteed Obligations. “Fair Share Contribution Amount” means, with respect to a Contributing Guarantor as of any date of determination, the maximum aggregate amount of the obligations of such Contributing Guarantor under this Guaranty that would not render its obligations hereunder or thereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any comparable applicable provisions of state law; provided, solely for purposes of calculating the “Fair Share Contribution Amount” with respect to any Contributing Guarantor for purposes of this Section 10.2, any assets or liabilities of such Contributing Guarantor arising by virtue of any rights to subrogation, reimbursement or indemnification or any rights to or obligations of contribution hereunder shall not be considered as assets or liabilities of such Contributing Guarantor. “Aggregate  Payments” means, with respect to a Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate amount of all payments and distributions made on or before such date by such Contributing Guarantor in respect of this Guaranty (including in respect of this Section 10.2), minus (2) the aggregate amount of all payments received on or before such date by such Contributing Guarantor from the other Contributing Guarantors as contributions under this Section 10.2. The amounts payable as contributions hereunder shall be determined as of the date on which the related payment or distribution is made by the applicable Funding Guarantor. The allocation among Contributing Guarantors of their obligations as set forth in this Section 10.2 shall not be construed in any way to limit the liability of any Contributing Guarantor hereunder. Each Guarantor is a third party beneficiary to the contribution agreement set forth in this Section 10.2.
Section 10.3    Payment by Guarantors.  The Guarantors hereby jointly and severally agree, in furtherance of the foregoing and not in limitation of any other right which any Beneficiary may have at law or in equity against any Guarantor by virtue hereof, that upon the failure of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), the Guarantors will immediately upon demand pay, or cause to be paid, in cash, to the Administrative Agent for distribution to the applicable Beneficiaries, an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including interest which, but for the Borrower’s becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against the Borrower for such interest in the related bankruptcy case) and all other Guaranteed Obligations then owed to Beneficiaries as aforesaid.
Section 10.4    Liability of Guarantors Absolute.  Each Guarantor agrees that its obligations hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other than Payment in Full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting the generality thereof, each Guarantor agrees as follows:
(a)    this Guaranty is a guaranty of payment when due and not of collectability;
(b)    this Guaranty is a primary obligation of each Guarantor and not merely a contract of surety;
(c)    this Guaranty may be enforced upon the occurrence and during the continuance of an Event of Default notwithstanding the existence of any dispute between any other Loan Party and any Beneficiary with respect to the existence of such Event of Default;
(d)    the obligations of each Guarantor hereunder are independent of the obligations of any other Loan Party of the obligations of any Loan Party, and a separate action or actions may be brought and prosecuted against such Guarantor whether or not any action is brought against any other Loan Party and whether or not such Loan Party is joined in any such action or actions;

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(e)    payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify or abridge any Guarantor’s liability for any portion of the Guaranteed Obligations which has not been paid. Without limiting the generality of the foregoing, if any Beneficiary is awarded a judgment in any suit brought to enforce any Guarantor’s covenant to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to release such Guarantor from its covenant to pay the portion of the Guaranteed Obligations that is not the subject of such suit, and such judgment shall not, except to the extent satisfied by such Guarantor, limit, affect, modify or abridge any other Guarantor’s liability hereunder in respect of the Guaranteed Obligations;
(f)    any Beneficiary, upon such terms as it deems appropriate, without notice or demand and without affecting the validity or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate the payment of the same to the payment of any other obligations; (iii) request and accept other guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the Guaranteed Obligations; (iv) release, surrender, exchange, substitute, compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation of any Person (including any other Guarantor) with respect to the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for the benefit of such Beneficiary in respect hereof or the Guaranteed Obligations and direct the order or manner of sale thereof, or exercise any other right or remedy that such Beneficiary may have against any such security, in each case as such Beneficiary in its discretion may determine consistent herewith and any applicable security agreement, including foreclosure on any such security pursuant to one or more judicial or non-judicial sales, whether or not every aspect of any such sale is commercially reasonable, and even though such action operates to impair or extinguish any right of reimbursement or subrogation or other right or remedy of any Guarantor against any other Loan Party or any security for the Guaranteed Obligations; and (vi) exercise any other rights available to it under the Loan Documents; and
(g)    this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable and shall not be subject to any reduction, limitation, impairment, discharge or termination for any reason (other than Payment in Full of the Guaranteed Obligations), including the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them: (i) any failure or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether arising under the Loan Documents, at law, in equity or otherwise) with respect to the Guaranteed Obligations or any agreement relating thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of the terms or provisions (including provisions relating to events of default) hereof, any of the other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, in each case whether or not in accordance with the terms hereof or such Loan Document or any agreement relating to such other guaranty or security; (iii) (the Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal, invalid or unenforceable in any respect; (iv) the application of payments received from any source (other than payments received pursuant to the other Loan Documents or from the proceeds of any security for the Guaranteed Obligations, except to the extent such security also serves as collateral for indebtedness other than the Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed Obligations, even though any Beneficiary might have elected to apply such payment to any part or all of the Guaranteed Obligations; (v) any Beneficiary’s consent to the change, reorganization or termination of the corporate structure or existence of any Loan Party or any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (vi) any failure to perfect or continue perfection of a security interest in any collateral which secures any of the Guaranteed Obligations; (vii) any defenses, set-offs or counterclaims which any Loan Party may allege or assert against any Beneficiary in respect of the Guaranteed Obligations, including failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction and usury; and (viii) any other act or thing or omission, or delay to do any other act or thing, which may or might in any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.
Section 10.5    Waivers by Guarantors.  Each Guarantor hereby waives, for the benefit of Beneficiaries: (a) any right to require any Beneficiary, as a condition of payment or performance by such Guarantor, to (i) proceed against any other Loan Party or any other Person with respect to the Guaranteed Obligations, (ii) proceed against or exhaust any security held from the Borrower, any such other guarantor or any other Person, (iii) proceed against or have resort 

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to any balance of any deposit account or credit on the books of any Beneficiary in favor of any Loan Party or any other Person, or (iv) pursue any other remedy in the power of any Beneficiary whatsoever; (b) any defense arising by reason of the incapacity, lack of authority or any disability or other defense of any other Loan Party including any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto or by reason of the cessation of the liability of any other Loan Party from any cause other than Payment in Full of the Guaranteed Obligations; (c) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense based upon any Beneficiary’s errors or omissions in the administration of the Guaranteed Obligations, except behavior which amounts to bad faith; (e)(i) any principles or provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge of such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments and counterclaims, and (iv) promptness, diligence and any requirement that any Beneficiary protect, secure, perfect or insure any security interest or lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including acceptance hereof, notices of default hereunder, notices of any renewal, extension or modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to the Borrower and notices of any of the matters referred to in Section 10.4 and any right to consent to any thereof; and (g) any defenses or benefits that may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the terms hereof.
Section 10.6    Guarantors’ Rights of Subrogation, Contribution, etc.  Until the Guaranteed Obligations shall have been Paid in Full, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter have against any other Loan Party or any of its assets in connection with this Guaranty or the performance by such Guarantor of its obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise and including (a) any right of subrogation, reimbursement or indemnification that such Guarantor now has or may hereafter have against any other Loan Party with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that any Beneficiary now has or may hereafter have against any other Loan Party, and (c) any benefit of, and any right to participate in, any collateral or security now or hereafter held by any Beneficiary. In addition, until the Guaranteed Obligations shall have been Paid in Full, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any other guarantor (including any other Guarantor) of the Guaranteed Obligations, including any such right of contribution as contemplated by Section 10.2. Each Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against any other Loan Party or against any collateral or security, and any rights of contribution such Guarantor may have against any such other guarantor, shall be junior and subordinate to any rights any Beneficiary may have against any Loan Party, to all right, title and interest any Beneficiary may have in any such collateral or security, and to any right any Beneficiary may have against such other guarantor. If any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at any time when all Guaranteed Obligations shall not have been finally and Paid in Full, such amount shall be held in trust for the Beneficiaries and shall forthwith be paid over to Administrative Agent for the benefit of Beneficiaries to be credited and applied against the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms hereof.
Section 10.7    Subordination of Other Obligations.  Any Indebtedness of any Loan Party or any Guarantor now or hereafter held by any Guarantor is hereby subordinated in right of payment to the Guaranteed Obligations. 
Section 10.8    Continuing Guaranty.  This Guaranty is a continuing guaranty and shall remain in effect until all of the Guaranteed Obligations shall have been Paid in Full and the Commitments terminated. Each Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future transactions giving rise to any Guaranteed Obligations.
Section 10.9    Authority of Loan Parties.  It is not necessary for any Beneficiary to inquire into the capacity or powers of any Loan Party or the officers, directors or any agents acting or purporting to act on behalf of any of them.
Section 10.10    Financial Condition of Loan Parties.  Any Term Loan may be made to the Borrower or continued from time to time without notice to or authorization from any Guarantor regardless of the financial or other condition of any Loan Party at the time of any such grant or continuation. No Beneficiary shall have any obligation to disclose or discuss with any Guarantor its assessment, or any Guarantor’s assessment, of the financial condition of any Loan 

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Party. Each Guarantor has adequate means to obtain information from any Loan Party on a continuing basis concerning the financial condition of such Loan Party and its ability to perform its obligations under the Loan Documents and each Guarantor assumes the responsibility for being and keeping informed of the financial condition of each Loan Party and of all circumstances bearing upon the risk of non-payment of the Guaranteed Obligations. Each Guarantor hereby waives and relinquishes any duty on the part of any Beneficiary to disclose any matter, fact or thing relating to the business, operations or conditions of any Loan Party now known or hereafter known by any Beneficiary.
Section 10.11    Bankruptcy, etc.
(a)    So long as any Guaranteed Obligations remain outstanding, no Guarantor shall, without the prior written consent of Administrative Agent acting pursuant to the instructions of Required Lenders, commence or join with any other Person in commencing any bankruptcy, reorganization or insolvency case or proceeding of or against any other Loan Party. The obligations of Guarantors hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated by any case or proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of any other Loan Party or by any defense which any other Loan Party may have by reason of the order, decree or decision of any court or administrative body resulting from any such proceeding.
(b)    Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed Obligations which accrues after the commencement of any case or proceeding referred to in clause (a) above (or, if interest on any portion of the Guaranteed Obligations ceases to accrue by operation of law by reason of the commencement of such case or proceeding, such interest as would have accrued on such portion of the Guaranteed Obligations if such case or proceeding had not been commenced) shall be included in the Guaranteed Obligations because it is the intention of Guarantors and Beneficiaries that the Guaranteed Obligations which are guaranteed by Guarantors pursuant hereto should be determined without regard to any rule of law or order which may relieve any Loan Party or any of its Subsidiaries of any portion of such Guaranteed Obligations. Guarantors will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar Person to pay any Beneficiary, or allow the claim of any Beneficiary in respect of, any such interest accruing after the date on which such case or proceeding is commenced.
(c)    In the event that all or any portion of the Guaranteed Obligations are paid by any Loan Party or any of its Subsidiaries, the obligations of Guarantors hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of such payment(s) are rescinded or recovered directly or indirectly from any Beneficiary as a preference, fraudulent transfer or otherwise, and any such payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.
Section 10.12    Instrument for the Payment of Money.  Each Guarantor hereby acknowledges that the Guarantee in Section 10.1 constitutes an instrument for the payment of money, and consents and agrees that any Beneficiary, at its sole option, in the event of a dispute by such Guarantor in the payment of any moneys due hereunder, shall have the right to bring a motion/action under New York CPLR Section 3213.
Section 10.13    General Limitation on Guarantee Obligations.  In any action or proceeding involving any provincial, territorial or state corporate law, or any state or federal bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally, if the obligations of any Guarantor under Section 10.1 would otherwise, taking into account the provisions of Section 10.2, be held or determined to be void, invalid or unenforceable, or subordinated to the claims of any other creditors, on account of the amount of its liability under Section 10.1, then, notwithstanding any other provision hereof to the contrary, the amount of such liability shall, without any further action by such Guarantor, any Beneficiary or any other Person, be automatically limited and reduced to the highest amount that is valid and enforceable and not subordinated to the claims of other creditors as determined in such action or proceeding.
ARTICLE XI
MISCELLANEOUS
Section 11.1    Notices.
(a)    Notices Generally.  Except in the case of notices and other communications expressly permitted to be given by telephone (and except as provided in paragraph (b) below), all notices and other communications provided 

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for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by facsimile or email as follows:
If to any Loan Party:

Windsor Place, 4th Floor
22 Queen Street, 
Hamilton HM11, Bermuda
Attention of: Douglas Anthony
Telephone No.: 1 (441) 278-1466
E-mail: doug.anthony@enstargroup.com 

With copies to:

One Logan Square, Suite 2000
Philadelphia, PA 19103
Attention of:  Audrey Taranto
Telephone No.: 1 (727) 415-7995
E-mail: audrey.taranto@enstargroup.com 

If to Wells Fargo as
Administrative Agent:

Wells Fargo Bank, National Association
MAC D1109-019
1525 West W.T. Harris Blvd.
Charlotte, NC  28262
Attention of:  Syndication Agency Services
Telephone No.:  (704) 590-2703
Facsimile No.:  (704) 715-0092

With copies to:

Wells Fargo Bank, National Association
One Wells Fargo Center, 11th Floor
301 South College Street
Charlotte, North Carolina 28202
Attention of: Will Goley
Telephone No.: (704) 410-0854
Facsimile No.: (704) 410-0331
E-mail: will.goley@wellsfargo.com

If to any Lender:

To the address of such Lender set forth on the Register with respect to deliveries of notices and other documentation that may contain material non-public information.
Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next business day for the recipient).  Notices delivered through electronic communications to the extent provided in paragraph (b) below, shall be effective as provided in said paragraph (b).
(b)    Electronic Communications.  Notices and other communications to the Lenders hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article II or III (other than notices and other communications sent by email) if such Lender has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication.  The Administrative Agent or any Loan Party may, in its discretion, agree to accept notices and other communications to it 

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hereunder by electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications (other than notices and communications sent by email).  Unless the Administrative Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, email or other communication is not sent during the normal business hours of the recipient, such notice, email or other communication shall be deemed to have been sent at the opening of business on the next business day for the recipient.
(c)    Administrative Agent’s Office.  The Administrative Agent hereby designates its office located at the address set forth above, or any subsequent office which shall have been specified for such purpose by written notice to the Loan Parties and the Lenders, as the Administrative Agent’s Office referred to herein, to which payments due are to be made.
(d)    Change of Address, Etc.  Each Loan Party and the Administrative Agent may change its address, facsimile number or email for notices and other communications hereunder by notice to the other parties hereto.  Any Lender may change its address, facsimile number or email for notices and other communications hereunder by notice to the Borrower and the Administrative Agent.
(e)    Platform.
(i)    The Loan Parties agree that the Administrative Agent may, but shall not be obligated to, make the Communications (as defined below) available to the Lenders by posting the Communications on the Platform.  
(ii)    The Platform is provided “as is” and “as available.” The Agent Parties (as defined below) do not warrant the accuracy or completeness of the Communications or the adequacy of the Platform and expressly disclaim liability for errors or omissions in the Communications. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by any Agent Party in connection with the Communications or the Platform. In no event shall the Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any liability to any Loan Party, any Lender or any other Person or entity for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of any Loan Party’s or the Administrative Agent’s transmission of communications through the Platform. “Communications” means, collectively, any notice, demand, communication, information, document or other material provided by or on behalf of any Loan Party pursuant to any Loan Document or the transactions contemplated therein that is distributed to the Administrative Agent or any Lender by means of electronic communications pursuant to this Section, including through the Platform.  
(f)    Public Information.  The Loan Parties hereby acknowledges that certain of the Lenders (each, a “Public Lender”) may have personnel who do not wish to receive material non-public information with respect to the Loan Parties or their Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities with respect to such Persons’ securities. Each Loan Party hereby agrees that it will use commercially reasonable efforts to identify that portion of the materials and information provided by or on behalf of that Loan Party  hereunder and under the other Loan Documents (collectively, “Borrower Materials”) that may be distributed to the Public Lenders and that (i) all such Borrower Materials shall be clearly and conspicuously marked “PUBLIC,” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the first page thereof; (ii) by marking Borrower Materials “PUBLIC,” such Loan Party shall be deemed to have authorized the Administrative Agent, the Arrangers and the Lenders to treat such Borrower Materials as not containing any material non-public information with respect to such Loan Party or its securities for purposes of United States federal and state securities Laws (provided, however, that to the extent that such Borrower Materials constitute Information, they shall be subject to Section 11.10); (iii) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of the Platform designated “Public Side Information;” and (iv) the Administrative Agent and the Arrangers shall be entitled to treat any Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on a portion 

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of the Platform not designated “Public Side Information”. Each Public Lender will designate one or more representatives that shall be permitted to receive information that is not designated as being available for Public Lenders.   
Section 11.2    Amendments, Waivers and Consents.  Except as set forth below or as specifically provided in any Loan Document, any term, covenant, agreement or condition of this Agreement or any of the other Loan Documents may be amended or waived by the Lenders, and any consent given by the Lenders, if, but only if, such amendment, waiver or consent is in writing signed by the Required Lenders (or by the Administrative Agent with the consent of the Required Lenders) and delivered to the Administrative Agent and, in the case of an amendment, signed by the Borrower; provided, that no amendment, waiver or consent shall:
(a)    increase or extend the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 8.1) or increase the amount of Term Loans of any Lender, in any case, without the written consent of such Lender;
(b)    waive, extend or postpone any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly and adversely affected thereby;
(c)    reduce the principal of, or the rate of interest specified herein on, any Term Loan or (subject to clause (iii) of the proviso set forth in the paragraph below) any fees or other amounts payable hereunder or under any other Loan Document without the written consent of each Lender directly and adversely affected thereby; provided that only the consent of the Required Lenders shall be necessary (i) to waive any obligation of the Borrower to pay interest at the rate set forth in Section 3.1(b) during the continuance of an Event of Default or (ii) to amend any financial covenant hereunder (or any defined term used therein) even if the effect of such amendment would be to reduce the rate of interest on any Term Loan or to reduce any fee payable hereunder;
(d)    change Section 3.6 in a manner that would alter the pro rata sharing of payments or order of application required thereby without the written consent of each Lender directly and adversely affected thereby;
(e)    change any provision of this Section or reduce the percentages specified in the definitions of “Required Lenders,” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender directly  and adversely affected thereby; 
(f)    consent to the assignment or transfer by any Loan Party of such Loan Party’s rights and obligations under any Loan Document to which it is a party (except as permitted pursuant to Section 7.3), in each case, without the written consent of each Lender; 
(g)    release any Guarantor from the Guaranty set forth in Article X without the written consent of each Lender; or
(h)    change this Section 11.2, without the written consent of each Lender;
provided further, that (i)  no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under this Agreement or any other Loan Document, (ii) each Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto, (iii) the Administrative Agent and the Borrower shall be permitted to amend any provision of the Loan Documents (and such amendment shall become effective without any further action or consent of any other party to any Loan Document) if the Administrative Agent and the Borrower shall have jointly identified an obvious error or any error, ambiguity, defect or inconsistency or omission of a technical or immaterial nature in any such provision, (iv) the Administrative Agent and the Borrower may, without the consent of any Lender, enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to implement any Replacement Rate or otherwise effectuate the terms of Section 3.7(c) in accordance with the terms of Section 3.7(c) and (v) the Administrative Agent, the Borrower and the Incremental Lenders may, without the consent of any other Lender, enter into amendments or modifications to this Agreement or any of the other Loan Documents or enter into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to implement any Incremental Term Loan Commitment or otherwise effectuate the terms of Section 3.12 in accordance with the terms of Section 3.12.  Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve 

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or disapprove any amendment, waiver or consent hereunder, except that (A) the Commitment of such Defaulting Lender may not be increased or extended, or the maturity of any of its Term Loans may not be extended, the rate of interest on any of its Term Loans may not be reduced and the principal amount of any of its Term Loans may not be forgiven, in each case without the consent of such Defaulting Lender, and (B) any amendment, waiver, or consent hereunder which requires the consent of all Lenders or each affected Lender that by its terms disproportionately and adversely affects any such Defaulting Lender relative to other affected Lenders shall require the consent of such Defaulting Lender.
Notwithstanding anything in this Agreement to the contrary, each Lender hereby irrevocably authorizes the Administrative Agent on its behalf, and without further consent of any Lender (but with the consent of the Borrower and the Administrative Agent), to amend and restate this Agreement if, upon giving effect to such amendment and restatement, such Lender shall no longer be a party to this Agreement (as so amended and restated), the Commitments of such Lender shall have terminated, such Lender shall have no other commitment or other obligation hereunder and shall have been paid in full all principal, interest and other amounts owing to it or accrued for its account under this Agreement (and for the avoidance of doubt, such Lender will continue to have the rights that survive termination of this Agreement with respect to such Lender).
Section 11.3    Expenses; Indemnity.
(a)    Costs and Expenses.  The Borrower and any other Loan Party, jointly and severally, shall pay (i) all reasonable and documented out of pocket expenses incurred by the Administrative Agent and its Affiliates (including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent), in connection with the syndication of the Credit Facility, the preparation, negotiation, execution, delivery and administration of this Agreement, the other Loan Documents, and the Commitment Letter or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated hereby or thereby shall be consummated) and (ii) all out of pocket expenses incurred by the Administrative Agent or any Lender (including the fees, charges and disbursements of (A) counsel for the Administrative Agent, (B) a single primary counsel for the Lenders, (C) a single local counsel for the Lenders in each applicable jurisdiction (which may include a single special counsel acting in multiple jurisdictions) and (D) in the event of any actual or potential conflict of interest, one additional counsel for each group of affected Lenders similarly situated subject to such conflict along with an additional local counsel in each applicable jurisdiction) in connection with the enforcement or protection of its rights (x) in connection with this Agreement, the other Loan Documents and the Commitment Letter, including its rights under this Section, or (y) in connection with the Term Loans made hereunder, including all such out of pocket expenses incurred during any workout, restructuring or negotiations in respect of such Term Loans (and all such payments under this Section shall be made in no event later than ten (10) Business Days following written demand therefor).
(b)    Indemnification by the Borrower.  The Borrower shall indemnify the Administrative Agent (and any sub-agent thereof) each Lender, each Arranger and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, and shall pay or reimburse any such Indemnitee for, any and all losses, claims, penalties, damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person (including the Borrower or any other Loan Party), arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan Document, the Commitment Letter or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) any Term Loan or the use or proposed use of the proceeds therefrom, (iii) any actual or alleged presence or release of Hazardous Materials on or from any property owned or operated by any Loan Party or any Subsidiary thereof or any Environmental Liability related in any way to any Loan Party or any Subsidiary, (iv) 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 Subsidiary thereof, and regardless of whether any Indemnitee is a party thereto, or (v) any claim, investigation, litigation or other proceeding (whether or not the Administrative Agent or any Lender is a party thereto) and the prosecution and defense thereof, arising out of or in any way connected with the Term Loans, this Agreement, any other Loan Document, or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby, including without limitation, reasonable attorneys and consultant’s fees, provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses (A) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee, (B) result from a claim brought by any Loan Party or any Subsidiary thereof against an Indemnitee for material breach in bad faith of such Indemnitee’s obligations hereunder or under any other 

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Loan Document, if such Loan Party or such Subsidiary has obtained a final and nonappealable judgment in its favor on such claim as determined by a court of competent jurisdiction or (C) result from a claim not involving an act or omission of any Loan Party and that is brought by an Indemnitee against another Indemnitee (other than against an Arranger or the Administrative Agent in their capacities as such).  This Section 11.3(b) shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. 
(c)    Reimbursement by Lenders.  To the extent that the Borrower for any reason fails to indefeasibly pay any amount required under clause (a) or (b) of this Section to be paid by it to the Administrative Agent (or any sub-agent thereof) or any Related Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or any such sub-agent) or such Related Party, as the case may be, such Lender’s Ratable Share (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount (including any such unpaid amount in respect of a claim asserted by such Lender); provided, that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent (or any such sub-agent) or against any Related Party of any of the foregoing acting for the Administrative Agent (or any such sub-agent) in connection with such capacity.  The obligations of the Lenders under this clause (c) are subject to the provisions of Section 3.1.  The Borrower shall indemnify and hold harmless each Lender in respect of any payment made by such Lender pursuant to this clause (c).
(d)    Waiver of Consequential Damages, Etc.  To the fullest extent permitted by Applicable Law, each party hereto shall not assert, and hereby waives, any claim against any other party and its Affiliates on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement, any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Term Loans or the use of the proceeds thereof, provided, that nothing contained in this sentence shall limit any Loan Party’s indemnity obligations to the extent such special, indirect, consequential or punitive damages are included in any third party claim in connection with which any Indemnitee is entitled to indemnification under Section 11.3(b).  
(e)    Payments.  All amounts due under this Section shall be payable promptly within ten (10) Business Days after demand therefor.
(f)    Electronic Communications.  No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby, except to the extent such damages are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee.
(g)    Survival.  Each party’s obligations under this Section shall survive the termination of the Loan Documents and payment of the obligations hereunder.
Section 11.4    Right of Setoff.  If an Event of Default shall have occurred and be continuing, each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to setoff and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or the account of the Borrower or any other Loan Party against any and all of the obligations of the Borrower or such Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or any of their respective Affiliates, irrespective of whether or not such Lender or any such Affiliate shall have made any demand under this Agreement or any other Loan Document and although such obligations of the Borrower or such Loan Party may be contingent or unmatured or are owed to a branch or office of such Lender or such Affiliate different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided that in the event that any Defaulting Lender or any Affiliate thereof shall exercise any such right of setoff, (x) all amounts so setoff shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 3.6 and, pending such payment, shall be segregated by such Defaulting Lender or Affiliate of a Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender or its Affiliate shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender or any of its Affiliates as to which such right of setoff was exercised.  The rights of each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective Affiliates 

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may have.  Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application; provided that the failure to give such notice shall not affect the validity of such setoff and application. 
Section 11.5    Governing Law; Jurisdiction, Etc.
(a)    Governing Law.  This Agreement and the other Loan Documents and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.
(b)    Submission to Jurisdiction.  Each Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against the Administrative Agent, any Lender or any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions relating hereto or thereto, in any forum other than 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 each of the parties hereto irrevocably and unconditionally submits to the exclusive jurisdiction of such courts 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 Applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement or in any other Loan Document shall affect any right that the Administrative Agent, any Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against the Borrower or any other Loan Party or its properties in the courts of any jurisdiction.
(c)    Waiver of Venue.  Each Loan Party irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section.  Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.
(d)    Service of Process.  Each party hereto irrevocably consents to service of process in the manner provided for notices in Section 11.1.  Nothing in this Agreement will affect the right of any party hereto to serve process in any other manner permitted by Applicable Law. EACH LOAN PARTY HEREBY IRREVOCABLY APPOINTS ENSTAR (US) INC., WITH AN ADDRESS OF 150 2ND AVENUE, N, THIRD FLOOR, ST. PETERSBURG, FLORIDA 33701, AS ITS AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY ACTION OR PROCEEDING.  IF FOR ANY REASON SUCH AGENT SHALL CEASE TO BE AVAILABLE TO ACT AS SUCH, EACH LOAN PARTY AGREES TO PROMPTLY DESIGNATE A NEW AGENT SATISFACTORY TO THE ADMINISTRATIVE AGENT TO RECEIVE, ACCEPT AND ACKNOWLEDGE FOR AND ON ITS BEHALF SERVICE OF ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND DOCUMENTS WHICH MAY BE SERVED IN ANY ACTION OR PROCEEDING.
Section 11.6    Waiver of Jury Trial.
(a)    EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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Section 11.7    Reversal of Payments.  To the extent any Loan Party makes a payment or payments to the Administrative Agent for the ratable benefit of any of the Lenders or to any Lender directly or the Administrative Agent or any Lender receives any payment or any Lender exercises its right of setoff, which payments or proceeds (including any proceeds of such setoff) or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any Debtor Relief Law, other Applicable Law or equitable cause, then, to the extent of such payment or proceeds repaid, the Obligations or part thereof intended to be satisfied shall be revived and continued in full force and effect as if such payment or proceeds had not been received by the Administrative Agent, and each Lender severally agrees to pay to the Administrative Agent upon demand its applicable ratable share (without duplication) of any amount so recovered from or repaid by the Administrative Agent plus interest thereon at a per annum rate equal to the Federal Funds Rate from the date of such demand to the date such payment is made to the Administrative Agent
Section 11.8    Injunctive Relief.  Each Loan Party recognizes that, in the event such Loan Party fails to perform, observe or discharge any of its obligations or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to the Lenders.  Therefore, each Loan Party agrees that the Lenders, at the Lenders’ option, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.
Section 11.9    Successors and Assigns; Participations.
(a)    Successors and Assigns Generally.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that no Loan Party may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Administrative Agent and each Lender, and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in accordance with the provisions of paragraph (b) of this Section, (ii) by way of participation in accordance with the provisions of paragraph (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of paragraph (e) of this Section (and any other attempted assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.
(b)    Assignments by Lenders.  Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Term Loans at the time owing to it); provided that any such assignment shall be subject to the following conditions:
(i)    Minimum Amounts.
(A)    in the case of an assignment of the entire remaining amount of the assigning Lender’s Commitment and/or the Term Loans at the time owing to it or contemporaneous assignments to related Approved Funds (determined after giving effect to such assignments) that equal at least the amount specified in paragraph (b)(i)(B) of this Section in the aggregate or in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned; and
(B)    in any case not described in paragraph (b)(i)(A) of this Section, the aggregate amount of the Commitment or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Term Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000, unless each of the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably withheld or delayed); provided that the Borrower shall be deemed to have given its consent ten (10) Business Days after the date written notice thereof has been delivered by the assigning Lender (through the Administrative Agent) unless such consent is expressly refused by the Borrower prior to such tenth (10th) Business Day;

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(ii)    Proportionate Amounts.  Each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Term Loans or Commitment assigned;
(iii)    Required Consents.  No consent shall be required for any assignment except to the extent required by paragraph (b)(i)(B) of this Section and, in addition:
(A)    the consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or an Approved Fund; provided, that the Borrower shall be deemed to have consented to any such assignment unless it shall object thereto by written notice to the Administrative Agent within 10 Business Days after having received notice thereof; and
(B)    the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments to a Person that is not a Lender, an Affiliate of such Lender or an Approved Fund with respect to such Lender.
(iv)    Assignment and Assumption.  The parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 for each assignment; provided that (A) only one such fee will be payable in connection with simultaneous assignments to two or more related Approved Funds by a Lender and (B) the Administrative Agent may, in its sole discretion, elect to waive such processing and recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
(v)    No Assignment to Certain Persons.  No such assignment shall be made to (A) the Borrower or any of its Subsidiaries or Affiliates or (B) any Defaulting Lender or any of its Subsidiaries, or any Person who, upon becoming a Lender hereunder, would constitute a Defaulting Lender or a Subsidiary thereof.
(vi)    No Assignment to Natural Persons.  No such assignment shall be made to a natural Person (or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person).
(vii)    Certain Additional Payments.  In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Administrative Agent in an aggregate amount sufficient, upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or subparticipations, or other compensating actions, including funding, with the consent of the Borrower and the Administrative Agent, the applicable pro rata share of Term Loans previously requested, but not funded by, the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to (A) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Administrative Agent and each other Lender hereunder (and interest accrued thereon), and (B) acquire (and fund as appropriate) its full pro rata share of all Term Loans in accordance with its Ratable Share.  Notwithstanding the foregoing, in the event that any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of this Agreement until such compliance occurs.
Subject to acceptance and recording thereof by the Administrative Agent pursuant to paragraph (c) of this Section, from and after the effective date specified in each Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of, Section 3.7 Section 3.8, Section 3.9, Section 3.10 and Section 11.3 with respect to facts and circumstances occurring prior to the effective date of such assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting Lender.  Any assignment or transfer by a Lender of rights or 

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obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (d) of this Section (other than a purported assignment to a natural Person or any Loan Party or any Loan Party’s Subsidiaries or Affiliates, which shall be null and void).
(c)    Register.  The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at one of its offices in Charlotte, North Carolina, a copy of each Assignment and Assumption and each Lender Joinder Agreement delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amounts (and stated interest) of the Term Loans owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries in the Register shall be conclusive absent manifest error, and the Loan Parties, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection by any Loan Party and any Lender (but only to the extent of entries in the Register that are applicable to such Lender), at any reasonable time and from time to time upon reasonable prior notice.
(d)    Participations.  Any Lender may at any time, without the consent of, or notice to, the any Loan Party or the Administrative Agent, sell participations to any Person (other than a natural Person, or a holding company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural Person, or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Term Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Loan Parties, the Administrative Agent and Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement.  For the avoidance of doubt, each Lender shall be responsible for the indemnity under Section 11.3(c) with respect to any payments made by such Lender to its Participant(s).
Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in Section 11.2(a), Section 11.2(b), Section 11.2(c), Section 11.2(d) that directly and adversely affects such Participant.  The Loan Parties agree that each Participant shall be entitled to the benefits of Section 3.8, Section 3.9 and Section 3.10 (subject to the requirements and limitations therein (it being understood that the documentation required under Section 3.10(g) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section; provided that such Participant (A) agrees to be subject to the provisions of Section 3.11 as if it were an assignee under paragraph (b) of this Section; and (B) shall not be entitled to receive any greater payment under Section 3.9 or Section 3.10, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation.  Each Lender that sells a participation agrees, at the Borrower’s request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of Section 3.11(b) with respect to any Participant.  To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.4 as though it were a Lender; provided that such Participant agrees to be subject to Section 3.6 and Section 11.4 as though it were a Lender.
Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Loan Parties, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant’s interest in the Term Loans or other obligations under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant’s interest in any commitments, loans or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

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(e)    Certain Pledges.  Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank or other central bank; provided that no such pledge or assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
Section 11.10    Treatment of Certain Information; Confidentiality.  Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’ respective Related Parties in connection with the Credit Facility, this Agreement, the transactions contemplated hereby or in connection with marketing of services by such Affiliate or Related Party to the Borrower or any of its Subsidiaries (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent required or requested by, or required to be disclosed to, any regulatory or similar authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority, such as the National Association of Insurance Commissioners) or in accordance with the Administrative Agent’s or any Lender’s regulatory compliance policy if the Administrative Agent or such Lender, as applicable, deems such disclosure to be necessary for the mitigation of claims by those authorities against the Administrative Agent or such Lender, as applicable, or any of its Related Parties (in which case, the Administrative Agent or such Lender, as applicable, shall use commercially reasonable efforts to, except with respect to any audit or examination conducted by bank accountants or any governmental bank regulatory authority exercising examination or regulatory authority, promptly notify the Borrower, in advance, to the extent practicable and otherwise permitted by Applicable Law), (c) as to the extent required by Applicable Laws or regulations or in any legal, judicial, administrative proceeding or other compulsory process, (d) to any other party hereto, (e) in connection with the exercise of any remedies under this Agreement or under any other Loan Document or any action or proceeding relating to this Agreement or any other Loan Document, or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights and obligations under this Agreement, subject with respect to such prospective assignee or any Participant or prospective Participant to such Person agreeing to be bound by an agreement containing provisions substantially the same as those of this Section, or (ii) any actual or prospective party (or its Related Parties) to any swap, derivative or other transaction under which payments are to be made by reference to any Loan Party and its obligations, this Agreement or payments hereunder, subject to an agreement containing provisions substantially the same as those of this Section, (iii) to an investor or prospective investor in an Approved Fund that also agrees that Information shall be used solely for the purpose of evaluating an investment in such Approved Fund subject to an agreement containing provisions substantially the same as those of this Section, (iv) to a trustee, collateral manager, servicer, backup servicer, noteholder or secured party in an Approved Fund in connection with the administration, servicing and reporting on the assets serving as collateral for an Approved Fund subject to an agreement containing provisions substantially the same as those of this Section, or (v) to a nationally recognized rating agency that requires access to information regarding the Borrower and its Subsidiaries, the Term Loans and the Loan Documents in connection with ratings issued with respect to an Approved Fund subject to an agreement containing provisions substantially the same as those of this Section, (g) on a confidential basis to (i) any rating agency in connection with rating the Borrower or its Subsidiaries or the Credit Facility or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers with respect to the Credit Facility, (h) with the written consent of the Borrower, (i) deal terms and other information customarily reported to Thomson Reuters, other bank market data collectors and similar service providers to the lending industry and service providers to the Administrative Agent and the Lenders in connection with the administration of the Loan Documents, (j) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the Administrative Agent, any Lender or any of their respective Affiliates from a third party that is not, to such Person’s knowledge, subject to confidentiality obligations to any Loan Party, (k) to the extent that such information is independently developed by such Person without reference to any Information, or (l) for purposes of establishing a “due diligence” defense.  For purposes of this Section, “Information” means all information received from any Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or any of their respective businesses, other than any such information that is available to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Loan Party or any Subsidiary thereof; provided that, in the case of information received from a Loan Party or any Subsidiary thereof after the date hereof, such information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

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Section 11.11    Performance of Duties.  Each of the Loan Party’s obligations under this Agreement and each of the other Loan Documents shall be performed by such Loan Party at its sole cost and expense.
Section 11.12    All Powers Coupled with Interest.  All powers of attorney and other authorizations granted to the Lenders, the Administrative Agent and any Persons designated by the Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of the Obligations remain unpaid or unsatisfied, any of the Commitments remain in effect or the Credit Facility has not been terminated.
Section 11.13    Survival.
(a)    All representations and warranties set forth in Article V and all representations and warranties contained in any certificate, or any of the Loan Documents (including, but not limited to, any such representation or warranty made in or in connection with any amendment thereto) shall constitute representations and warranties made under this Agreement.  All representations and warranties made under this Agreement shall be made or deemed to be made at and as of the Closing Date (except those that are expressly made as of a specific date), shall survive the Closing Date and shall not be waived by the execution and delivery of this Agreement, any investigation made by or on behalf of the Lenders or any borrowing hereunder.
(b)    Notwithstanding any termination of this Agreement, the expense reimbursements and indemnities to which the Administrative Agent and the Lenders are entitled under the provisions of Sections 3.8, 3.9, this Article XI and any other provision of this Agreement and the other Loan Documents shall continue in full force and effect and shall protect the Administrative Agent and the Lenders against events arising after such termination as well as before.
Section 11.14    Titles and Captions.  Titles and captions of Articles, Sections and subsections in, and the table of contents of, this Agreement are for convenience only, and neither limit nor amplify the provisions of this Agreement.
Section 11.15    Severability of Provisions.  Any provision of this Agreement or any other Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.  In the event that any provision is held to be so prohibited or unenforceable in any jurisdiction, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such provision to preserve the original intent thereof in such jurisdiction (subject to the approval of the Required Lenders).
Section 11.16    Counterparts; Integration; Effectiveness; Electronic Execution.
(a)    Counterparts; Integration; Effectiveness.  This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Agreement and the other Loan Documents, and any separate letter agreements with respect to fees payable to the Administrative Agent and/or the Arrangers, constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Except as provided in Section 4.1, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic (e.g., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement.
(b)    Electronic Execution of Assignments.  The words “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
Section 11.17    Term of Agreement.  This Agreement shall remain in effect from the Closing Date through and including the date upon which all Obligations (other than contingent indemnification obligations not then due) arising hereunder or under any other Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full.  

68

No termination of this Agreement shall affect the rights and obligations of the parties hereto arising prior to such termination or in respect of any provision of this Agreement which survives such termination.
Section 11.18    USA PATRIOT Act; Anti-Money Laundering Laws.  The Administrative Agent and each Lender hereby notifies each Loan Party that pursuant to the requirements of the PATRIOT Act or any other Anti-Money Laundering Laws, each of them is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender to identify each Loan Party in accordance with the PATRIOT Act or such Anti-Money Laundering Laws.
Section 11.19    Independent Effect of Covenants.  Each Loan Party expressly acknowledges and agrees that each covenant contained in Article VI and Article VII hereof shall be given independent effect.  Accordingly, no Loan Party shall engage in any transaction or other act otherwise permitted under any covenant contained in Article VI or Article VII, if before or after giving effect to such transaction or act, such Loan Party shall or would be in breach of any other covenant contained in Article VI or Article VII.
Section 11.20    No Advisory or Fiduciary Responsibility.
(a)    In connection with all aspects of each transaction contemplated hereby, each Loan Party acknowledges and agrees, and acknowledges its Affiliates’ understanding, that (i) the facilities provided for hereunder and any related arranging or other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Borrower and its Affiliates, on the one hand, and the Administrative Agent, the Arrangers and the Lenders, on the other hand, and the Borrower is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including any amendment, waiver or other modification hereof or thereof), (ii) in connection with the process leading to such transaction, each of the Administrative Agent, the Arrangers and the Lenders is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary, for the Borrower or any of its Affiliates, stockholders, creditors or employees or any other Person, (iii) none of the Administrative Agent, the Arrangers or the Lenders has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower or any of its Affiliates with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether any Arranger or Lender has advised or is currently advising the Borrower or any of its Affiliates on other matters) and none of the Administrative Agent, the Arrangers or the Lenders has any obligation to the Borrower or any of its Affiliates with respect to the financing transactions contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents, (iv) the Arrangers and the Lenders and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ from, and may conflict with, those of the Borrower and its Affiliates, and none of the Administrative Agent, the Arrangers or the Lenders has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship and (v) the Administrative Agent, the Arrangers and the Lenders have not provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and the Loan Parties have consulted their own legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate.
(b)    Each Loan Party acknowledges and agrees that each Lender, the Arrangers and any Affiliate thereof may lend money to, invest in, and generally engage in any kind of business with, any Loan Party, any Affiliate thereof or any other person or entity that may do business with or own securities of any of the foregoing, all as if such Lender, Arranger or Affiliate thereof were not a Lender or Arranger or an Affiliate thereof (or an agent or any other person with any similar role under the Credit Facilities) and without any duty to account therefor to any other Lender, any Arranger, any Loan Party, or any Affiliate of the foregoing.  Each Lender, Arranger and any Affiliate thereof may accept fees and other consideration from any Loan Party or any Affiliate thereof for services in connection with this Agreement, the Credit Facilities or otherwise without having to account for the same to any other Lender, any Arranger, any Loan Party or any Affiliate of the foregoing.
Section 11.21    Inconsistencies with Other Documents.  In the event there is a conflict or inconsistency between this Agreement and any other Loan Document, the terms of this Agreement shall control ; provided that any provision of the Loan Documents which imposes additional burdens on the Borrower or any of its Subsidiaries or further restricts the rights of the Borrower or any of its Subsidiaries or gives the Administrative Agent or Lenders additional rights shall not be deemed to be in conflict or inconsistent with this Agreement and shall be given full force and effect.

69

Section 11.22    Judgment Currency.  The obligations of any Loan Party in respect of any sum due to the Lenders hereunder or under any other Loan Document shall, notwithstanding any judgment in a currency (the “judgment currency”) other than the currency in which such sum originally due to such party is denominated (the “original currency”), be discharged only to the extent that on the Business Day following receipt by such party of any sum adjudged to be so due in the judgment currency such party may in accordance with normal banking procedures purchase the original currency with the judgment currency.  If the amount of the original currency so purchased is less than the sum originally due to such party in the original currency, such Loan Party agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such party against such loss, and if the amount of the original currency so purchased exceeds the sum originally due to such party to this Agreement, such party agrees to remit to such Loan Party the amount of such excess. This covenant shall survive the termination of this Agreement and payment of the Term Loans and all other amounts payable hereunder.
Section 11.23    Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a)    the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an EEA Financial Institution; and
(b)    the effects of any Bail-in Action on any such liability, including, if applicable:
(i)    a reduction in full or in part or cancellation of any such liability;
(ii)    a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii)    the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.

[Signature pages to follow]

70

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

ENSTAR GROUP LIMITED, as Borrower

By:      /s/ Guy Bowker    
Name:     Guy Bowker
Title:    Chief Financial Officer

KENMARE HOLDINGS LTD., as Guarantor

By:      /s/ Duncan Scott        
Name:     Duncan Scott
Title:     Director

ENSTAR (US ASIA-PAC) HOLDINGS LIMITED,
as Guarantor

By:      /s/ Clive Paul Thomas        
Name:     Clive Paul Thomas
Title:    Director

ENSTAR HOLDINGS (US) LLC, as Guarantor

By:      /s/ Jennifer Miu        
Name:     Jennifer Miu
Title:     Chief Financial Officer

ENSTAR (US) INC., as agent for service of process
By:      /s/ Jennifer Miu        
Name:     Jennifer Miu
Title:     Chief Financial Officer

LENDERS:

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent and Lender

By:     /s/ William R. Goley        
Name:     William R. Goley
Title:    Managing Director

NATIONAL AUSTRALIA BANK LIMITED, as Lender
(ABN 12 004 004 937)

By:     /s/ Bill Seabrook    
Name:     Bill Seabrook
Title:    Director

SUNTRUST BANK, as Lender

By:      /s/ Doug Kennedy        
Name:     Doug Kennedy
Title:    Director

HSBC BANK BERMUDA LIMITED, as Lender

By:      /s/ Louise Twiss West        
Name:     Louise Twiss West
Title:    Head of Financial Institutions Group

HSBC BANK BERMUDA LIMITED, as Lender

By:      /s/ Neville Grant        
Name:     Neville Grant
Title:    Head of Corporate Banking

JPMORGAN CHASE BANK, N.A., as Lender

By:      /s/ Hector J. Varona        
Name:     Hector J. Varona
Title:    Executive Director

THE BANK OF NOVA SCOTIA, as Lender

By:      /s/ Kevin Chan        
Name:     Kevin Chan
Title:    Director

BARCLAYS BANK PLC, as Lender

By:      /s/ Eoin Naughton        
Name:     Eoin Naughton
Title:    Director

EXHIBIT A

FORM OF TERM LOAN NOTE 

$__________                                         __________, 20___ 

FOR VALUE RECEIVED, the undersigned, Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), promises to pay to _______________ (the "Lender"), at the place and times provided in the Credit Agreement referred to below, the principal sum of _______________ DOLLARS ($__________) or, if less, the unpaid principal amount of all Term Loans made by the Lender pursuant to that certain Term Loan Credit Agreement, dated as of December 27, 2018 (the "Credit Agreement") by and among the Borrower, Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, the Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement. 

The unpaid principal amount of this Term Loan Note from time to time outstanding is payable as provided in the Credit Agreement and shall bear interest as provided in Section 3.1 of the Credit Agreement. All payments of principal and interest on this Term Loan Note shall be payable in Dollars in immediately available funds as provided in the Credit Agreement. 

This Term Loan Note is entitled to the benefits of, and evidences Obligations incurred under, the Credit Agreement, to which reference is made for a statement of the terms and conditions on which the Borrower is permitted and required to make prepayments and repayments of principal of the Obligations evidenced by this Term Loan Note and on which such Obligations may be declared to be immediately due and payable. 

THIS TERM LOAN NOTE SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

The Borrower hereby waives all requirements as to diligence, presentment, demand of payment, protest and (except as required by the Credit Agreement) notice of any kind with respect to this Term Loan Note. 

A-1

IN WITNESS WHEREOF, the undersigned has executed this Term Loan Note under seal as of the day and year first above written.

	
	
	 ENSTAR GROUP LIMITED

	By: 

	Name: 

	Title: 

A-2

EXHIBIT B 

FORM OF NOTICE OF BORROWING 

Dated as of: _____________ 
Wells Fargo Bank, National Association, 
as Administrative Agent 
MAC D 1109-019 
1525 West W.T. Harris Blvd. 
Charlotte, North Carolina 28262 
Attention: Syndication Agency Services 

Ladies and Gentlemen: 

This irrevocable Notice of Borrowing is delivered to you pursuant to Section [2.2] [4.2] of the Term Loan Credit Agreement dated as of December 27, 2018 (the "Credit Agreement"), by and among, Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, the Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement. 

1. The Borrower hereby requests that the Lenders make [the Initial Term Loan][an Incremental Term Loan] to the Borrower in the aggregate principal amount of $___________. (Complete with an amount in accordance with Section 2.2 or Section 3.12, as applicable, of the Credit Agreement.) 

2. The Borrower hereby requests that such Term Loan(s) be made on the following Business Day: _____________________. (Complete with a Business Day in accordance with Section 2.2(a) of the Credit Agreement for the Initial Term Loan and Section 3.12 of the Credit Agreement for an Incremental Term Loan). 

3. The Borrower hereby requests that such Term Loan(s) bear interest at the following interest rate, plus the Applicable Margin, as set forth below: 

	
				
	Component of Loan1
	Interest Rate 
	Interest Period (LIBOR Rate only) 
	Period

                	
	
	[Base Rate or LIBOR Rate]2

4. All of the conditions applicable to the Term Loan(s) requested herein as set forth in the Credit Agreement have been satisfied as of the date hereof and will remain satisfied to the date of such Term Loan. 

[Signature Page Follows] 

_______________

1 Complete with the Dollar amount of that portion of the overall Loan requested that is to bear interest at the selected interest rate and/or Interest Period (e.g., for a $20,000,000 loan, $5,000,000 may be requested at Base Rate, $8,000,000 may be requested at LIBOR with an interest period of three months and $7,000,000 may be requested at LIBOR with an interest period of one month).  
2 Complete with the Base Rate or the LIBOR Rate for the Initial Term Loan or any Incremental Term Loan.  

B-1

IN WITNESS WHEREOF, the undersigned has executed this Notice of Borrowing as of the day and year first written above. 
                            	
	
	ENSTAR GROUP LIMITED

	By: 

	Name: 

	Title: 

B-2

Exhibit C 

FORM OF NOTICE OF PREPAYMENT 

Dated as of: _____________ 

Wells Fargo Bank, National Association, 
as Administrative Agent 
MAC D 1109-019 
1525 West W.T. Harris Blvd. 
Charlotte, North Carolina 28262 
Attention: Syndication Agency Services 

Ladies and Gentlemen: 

This irrevocable Notice of Prepayment is delivered to you pursuant to Section 2.4 of the Term Loan Credit Agreement dated as of December 27, 2018 (the "Credit Agreement"), by and among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, the Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement. 

1. The Borrower hereby provides notice to the Administrative Agent that it shall repay the following [Base Rate Loans] and/or [LIBOR Rate Loans]: _______________. (Complete with an amount in accordance with Section 2.4 of the Credit Agreement.) 

2. The Borrower shall repay the above-referenced Term Loans on the following Business Day: _______________. (Complete with a date no earlier than (i) the same Business Day as of the date of this Notice of Prepayment with respect to any Base Rate Loan and (ii) three (3) Business Days subsequent to date of this Notice of Prepayment with respect to any LIBOR Rate Loan.) 

[Signature Page Follows] 
    

C-1

IN WITNESS WHEREOF, the undersigned has executed this Notice of Prepayment as of the day and year first written above. 
                            	
	
	ENSTAR GROUP LIMITED

	By: 

	Name: 

	Title: 

C-2

Exhibit D 

FORM OF NOTICE OF CONVERSION/CONTINUATION 

Dated as of: _____________ 
Wells Fargo Bank, National Association, 
as Administrative Agent 
MAC D 1109-019 
1525 West W.T. Harris Blvd. 
Charlotte, North Carolina 28262 
Attention: Syndication Agency Services 

Ladies and Gentlemen: 

This irrevocable Notice of Conversion/Continuation (this "Notice") is delivered to you pursuant to Section 3.2 of the Term Loan Credit Agreement dated as of December 27, 2018 (the "Credit Agreement"), by and among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, the Lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Credit Agreement. 

1. This Notice is submitted for the purpose of: (Check one and complete applicable information in accordance with the Credit Agreement.) 

o    Converting all or a portion of a Base Rate Loan into a LIBOR Rate Loan 
Outstanding principal balance:             $______________ 
Principal amount to be converted:         $______________ 
Requested effective date of conversion:         _______________ 
Requested new Interest Period:             _______________ 

o    Converting all or a portion of a LIBOR Rate Loan into a Base Rate Loan 
Outstanding principal balance:             $______________ 
Principal amount to be converted:         $______________ 
Last day of the current Interest Period:         _______________

Requested effective date of conversion:         _______________ 

o    Continuing all or a portion of a LIBOR Rate Loan as a LIBOR Rate Loan

Outstanding principal balance:             $______________ 
Principal amount to be continued:         $______________ 
Last day of the current Interest Period:         _______________ 
Requested effective date of continuation:     _______________ 
Requested new Interest Period:             _______________ 

[Signature Page Follows]

D-1

IN WITNESS WHEREOF, the undersigned has executed this Notice of Conversion/Continuation as of the day and year first written above. 
                            	
	
	ENSTAR GROUP LIMITED

	By: 

	Name: 

	Title: 

D-2

Exhibit E

FORM OF COMPLIANCE CERTIFICATE 

THIS CERTIFICATE is delivered pursuant to the Term Loan Credit Agreement, dated as of December 27, 2018 (the "Credit Agreement"), among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the Borrower), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, the Lenders from time to time parties thereto, and Wells Fargo Bank, National Association, as Administrative Agent. Capitalized terms used herein without definition shall have the meanings given to such terms in the Credit Agreement. 

The undersigned hereby certifies that: 

1. [He][She] is a duly elected _________________ of the Borrower.1 
2. Accompanying this Certificate are copies of the financial statements as of _____________, and for the [quarter] [year] then ended, required to be delivered under Section [6.1(a)][6.1(b)] of the Credit Agreement. Such financial statements have been prepared in accordance with the requirements of Section [6.1(a)][6.1(b)]. 
3. The undersigned has reviewed the terms of the Credit Agreement and has made, or caused to be made under the supervision of the undersigned, a review in reasonable detail of the transactions and condition of the Borrower and its Subsidiaries during the accounting period covered by such financial statements. 
4. The examination described in paragraph 3 above did not disclose, and the undersigned has no knowledge of the existence of, any Default or Event of Default as of the date of this Certificate[, except as set forth below] 

[Describe here or in a separate attachment any exceptions to paragraph 4 above by listing, in reasonable detail, the nature of the Default or Event of Default and the action that the Loan Parties have taken or propose to take with respect thereto.] 

5. Attached to this Certificate as Attachment A is a covenant compliance worksheet reflecting the computation of the financial covenants set forth in Section 7.12 of the Credit Agreement as of the last day of and for the period covered by the financial statements enclosed herewith. 

_____________________

1 NTD: Credit Agreement requires signature of the chief financial officer, chief accounting officer, vice president of finance, controller, the treasurer or assistant treasurer of the Borrower.  

E-1

IN WITNESS WHEREOF, the undersigned has executed and delivered this Certificate as of the ___ day of _____________, 201_. 

ENSTAR GROUP LIMITED 
                                
By: ___________________________________ 

Name: ___________________________________ 

Title: 

E-2

ATTACHMENT A 

COVENANT COMPLIANCE WORKSHEET 

A.     Borrower Net Worth 
(Section 7.12(a) of the Credit Agreement) 

	
					
	(1) The aggregate of the consolidated shareholders’ equity of the Borrower and its Subsidiaries determined in accordance with GAAP (Consolidated Net Worth) as of the date of determination:

	 
	$___________

	(2) Minimum Amount 

	 
	 

	 
	(a) 
	(i) Base Amount 

	$2,300,000,000
	 

	 
	 
	(ii) Plus: 50% of the net income available for distribution to common shareholders of the Borrower at any time after August 16, 2018 

	$___________
	 

	 
	 
	(iii) Plus: 50% of the proceeds of any common stock issuance of the Borrower made after August 16, 2018 

	$___________
	 

	 
	(b)
	Minimum Amount (Sum of Line (2)(a)(i), Line 2(a)(ii) and Line (2)(a)(iii)) 

	 
	$_________

B.     Gearing Ratio 
(Section 7.12(b) of the Credit Agreement) 

	
					
	(1) Consolidated Financial Indebtedness of the Borrower as of the date of determination

	 
	 

	 
	(a)
	Aggregate outstanding principal, capital or nominal amount (and any fixed or minimum premium payable on prepayment or redemption) of any Indebtedness of members of the Group

	$___________
	 

	 
	(b)
	Less: Obligations to any other member of the Group (to the extent included in Line 1(a)) 

	$___________
	 

	 
	(c)
	Less: Indebtedness incurred pursuant to any letter of credit or its equivalent in the ordinary course of business, but only in each case to the extent such letter of credit or equivalent is undrawn (to the extent included in Line 1(a))

	$___________
	 

	 
	(d)
	Less: Unconditional, committed capital instruments which are callable on demand (excluding Hybrid Capital) to the extent that such instruments would not in aggregate exceed 10% of Total Capital (to the extent included in Line 1(a)) 

	$___________
	 

E-3

	
					
	 
	(e)
	Less: any security that affords equity benefit to the issuer thereof (under the procedures and guidelines of S&P at the time of issuance of such security) by having ongoing payment requirements that are more flexible than interest payments associated with conventional indebtedness for borrowed money and by being contractually subordinated to such indebtedness (Hybrid Capital) to the extent that such Hybrid Capital (A) does not in aggregate exceed 15% of Total Capital and (B) does not mature or is not mandatorily redeemable or subject to any mandatory repurchase requirement at any time on or prior to the date which is six months after the Maturity Date (to the extent included in Line 1(a)) 

	$___________
	 

	 
	(g)
	Line 1(a) minus Line 1(b) minus Line 1(c) minus Line 1(d) minus Line 1(e) 
	 
	$___________

	 
	 
	 
	 
	 

	(2) Total Capital of the Borrower as of the date of determination
	 
	 

	 
	(a)
	The Consolidated Financial Indebtedness of the Borrower (included above as line 1(g)) on such date (excluding, to the extent otherwise included, all Hybrid Capital)

	$___________
	 

	 
	(b)
	Plus: The Consolidated Net Worth on such date (excluding, to the extent otherwise included, all Hybrid Capital) 

	$___________
	 

	 
	(c)
	Plus: The aggregate principal amount of all Hybrid Capital on such date 

	$___________
	 

	 
	(d)
	Line 2(a) plus Line 2(b) plus Line 2(c) 

	 
	$___________

	 
	 
	 
	 
	 

	(3) Consolidated Financial Indebtedness to Total Capital as of the date of determination (divide Line 1(g) by Line 2(d)) 
	 
	___________

	 
	 
	 
	 
	 

	(4) Maximum Consolidated Financial Indebtedness to Total Capital as of the date of determination 
	 
	0.35 : 1.0

E-4

EXHIBIT F 

FORM OF ASSIGNMENT AND ASSUMPTION 

THIS ASSIGNMENT AND ASSUMPTION (this "Assignment and Assumption") is dated as of the Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the "Assignor") and [Insert name of Assignee] (the "Assignee"). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below, receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto (the "Standard Terms and Conditions") are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth herein in full. 

For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s rights and obligations in its capacity as a Lender under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified below (including any guarantees included in such facilities) and (ii) to the extent permitted to be assigned under Applicable Law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as the Assigned Interest). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by the Assignor. 

1.     Assignor:     ______________________________ 

2.     Assignee:     ______________________________ 
[and is an Affiliate/Approved Fund of [identify Lender]1] 

3.     Borrower:     Enstar Group Limited 

4.     Administrative Agent: Wells Fargo Bank, National Association, as the Administrative Agent under the Credit Agreement.

5.     Credit Agreement: Term Loan Credit Agreement, dated as of December 27, 2018 (as amended, modified, restated or supplemented from time to time, the "Credit Agreement"), among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, certain Lenders from time to time parties thereto (the "Lenders"), and Wells Fargo Bank, National Association, as Administrative Agent. 

_______________________

1 Select as applicable. 

F-1

6.     Assigned Interest: 
	
				
	Aggregate Amount of Commitment/Term Loans for all Lenders2
	Amount of Commitment/Term Loans Assigned3
	Percentage Assigned of Commitment/Term Loans4
	CUSIP Number5

	$ 
	$ 
	%
	 

	$ 
	$ 
	%
	 

	$ 
	$ 
	%
	 

[7.     Trade Date:     ______________]6 

8.     Effective Date:     ______________ [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 

_______________________

2 Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 
3 Amount to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date. 
4Set forth, to at least 9 decimals, as a percentage of the Commitment/Term Loans of all Lenders thereunder. 
5 Insert if applicable. 
6 To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.  

F-2

The terms set forth in this Assignment and Assumption are hereby agreed to: 

ASSIGNOR: 

[NAME OF ASSIGNOR] 

By: _________________________________ 
                    
Title: _________________________________ 

ASSIGNEE: 

[NAME OF ASSIGNEE] 

By: _________________________________ 

Title: _________________________________ 

[Consented to and]7 Accepted: 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent 

By: _________________________________ 

Title: _________________________________ 

[Consented to:]8 

ENSTAR GROUP LIMITED 

By: _________________________________ 

Title: _________________________________ 

_______________________

7 To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement. 
8 To be added only if the consent of the Borrower is required by the terms of the Credit Agreement. 

F-3

ANNEX 1 to Assignment and Assumption 

Term Loan Credit Agreement, dated as of December 27, 2018 (the "Credit Agreement"), among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as Guarantors, the Lenders from time to time parties thereto, and Wells Fargo Bank, National Association, as Administrative Agent. 

STANDARD TERMS AND CONDITIONS FOR 
ASSIGNMENT AND ASSUMPTION 

1. Representations and Warranties. 

1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and (iv) it is not a Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the Loan Parties, any of their Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Loan Parties, any of their Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document. 

1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under the Credit Agreement (subject to receipt of such consents as may be required under the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 6.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the Assignor or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations that by the terms of the Loan Documents are required to be performed by it as a Lender. 

2. Payments. From and after the Effective Date, the Administrative Agent shall make all payments in respect of the Assigned Interest (including payments of principal, interest, fees and other amounts) to the Assignor for amounts that have accrued to but excluding the Effective Date and to the Assignee for amounts that have accrued from and after the Effective Date. 

3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with, the laws of the State of New York. 

F-4

EXHIBIT G-1

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Term Loan Credit Agreement dated as of December 27, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as guarantors (together with the Borrower, the "Loan Parties"), the lenders party thereto (the "Lenders") and Wells Fargo Bank, National Association, as agent (the "Agent"). 

Pursuant to the provisions of Section 3.10 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Term Loans (as well as any Term Loan Notes evidencing such Term Loans) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished the Agent and the Loan Parties with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Loan Parties and the Agent, and (2) the undersigned shall have at all times furnished the Loan Parties and the Agent, to the extent it is legally able to do so, with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 

[NAME OF LENDER] 

By: _________________________
Name: 
Title: 

Date: ________ __, 20__ 

G-1-1

EXHIBIT G-2

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Term Loan Credit Agreement dated as of December 27, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as, the lenders party thereto (the "Lenders") and Wells Fargo Bank, National Association, as agent (the "Agent"). 

Pursuant to the provisions of Section 3.10 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 

[NAME OF PARTICIPANT] 

By: ___________________________
Name: 
Title: 

Date: ________ __, 20__ 

G-2-1

EXHIBIT G-3

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Term Loan Credit Agreement dated as of December 27, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the "Borrower"), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as guarantors, the lenders party thereto (the "Lenders") and Wells Fargo Bank, National Association, as agent (the "Agent"). 

Pursuant to the provisions of Section 3.10 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 

[NAME OF PARTICIPANT] 

By: ____________________
Name: 
Title: 
Date: ________ __, 20__ 

G-3-1

EXHIBIT G-4

FORM OF U.S. TAX COMPLIANCE CERTIFICATE 

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Term Loan Credit Agreement dated as of December 27, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the "Credit Agreement"), by and among Enstar Group Limited, an exempted company limited by shares and incorporated in Bermuda (the Borrower), Kenmare Holdings Ltd., an exempted company limited by shares and incorporated in Bermuda, Enstar (US Asia-Pac) Holdings Limited, a limited liability company incorporated in England and Wales, and Enstar Holdings (US) LLC, a Delaware limited liability company, as guarantors (together with the Borrower, the "Loan Parties"), the lenders party thereto (the "Lenders") and Wells Fargo Bank, National Association, as agent (the "Agent"). 

Pursuant to the provisions of Section 3.10 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Term Loans (as well as any Term Loan Notes evidencing such Term Loans) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Term Loans (as well as any Term Loan Notes evidencing such Term Loans), (iii) with respect to the extension of credit pursuant to the Credit Agreement or any other Loan Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished the Agent and the Loan Parties with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Loan Parties and the Agent, and (2) the undersigned shall have at all times furnished the Loan Parties and the Agent with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years preceding such payments. 

Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 

[NAME OF LENDER] 

By: ________________________
Name: 
Title: 
Date: ________ __, 20__ 

G-4-1

EXHIBIT H

FORM OF GUARANTOR JOINDER AGREEMENT 

GUARANTOR JOINDER AGREEMENT (this "Agreement"), dated as of _____________, among Enstar Group Limited (the "Borrower"), [Insert name of each New Guarantor], a [Insert jurisdiction and type of organization for each New Guarantor] (each, a "New Guarantor"), and Wells Fargo Bank, National Association, as administrative agent (the "Administrative Agent"). 

The Borrower, the existing Guarantors party thereto, the Lenders party thereto and the Administrative Agent are parties to a Term Loan Credit Agreement dated as of December 27, 2018 (as amended, supplemented and otherwise modified and in effect from time to time, the "Credit Agreement"). Capitalized terms used but not otherwise defined herein have the meanings assigned to them in the Credit Agreement. 

Under the Credit Agreement, the Lenders have agreed, upon the terms and subject to the conditions therein set forth, to make Term Loans to the Borrower, and the Borrower is required to cause each New Guarantor to become a Guarantor under the Credit Agreement pursuant to the terms of Section 6.15 of the Credit Agreement. Upon execution of this Agreement by each of the Borrower, each New Guarantor and the Administrative Agent, (x) each New Guarantor shall be a party to the Credit Agreement and shall constitute a "Guarantor" for all purposes thereunder and under each other Loan Document with the same force and effect as if originally named in the Credit Agreement as a Guarantor, (y) each reference to the "Guarantors" or the "Loan Parties" in the Credit Agreement and in all other Loan Documents shall, from the date hereof, be deemed to include each New Guarantor and (z) each New Guarantor hereby agrees to be bound by all the obligations of a Guarantor under the Credit Agreement and all the other Loan Documents. Without limiting the generality of the foregoing, each New Guarantor hereby (i) makes and undertakes, as the case may be, each covenant, waiver, representation and warranty made by the other Guarantors pursuant to the Credit Agreement and any other Loan Document, each of which is hereby incorporated by reference, and agrees to be bound by all covenants, waivers, agreements and obligations of the other Guarantors pursuant to the Credit Agreement and any other Loan Document and (ii) represents and warrants that such New Guarantor has duly executed and delivered this Agreement and that this Agreement constitutes its legal, valid and binding obligations, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 

This Agreement shall constitute a "Loan Document" for all purposes under the Credit Agreement and the other Loan Documents. This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of and be enforceable by each of the parties hereto and its successors and assigns; provided that no New Guarantor may assign any of its rights, obligations or interest hereunder except as permitted by the Credit Agreement. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and both of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement. In the event that any provision of this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be severable from the other provisions of this Agreement which shall remain binding on all parties hereto. This Agreement shall be construed and enforced in accordance with and governed by the law of the State of New York. 

H-1

IN WITNESS WHEREOF, each New Guarantor and the Borrower have caused this Guarantor Joinder Agreement to be duly executed and delivered as of the day and year first above written. 

NEW GUARANTORS: 
[NAME OF NEW GUARANTOR] 

By: 
Name: 
Title: 

BORROWER: 

ENSTAR GROUP LIMITED 

By: 
Name: 
Title: 

Accepted and agreed: 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 
as Administrative Agent 

By: 
Name: 
Title: 

H-2

SCHEDULE 1.1 - COMMITMENTS
	
			
	Lender
	Term Loan Commitment 
	Applicable Percentage 

	Wells Fargo Bank, National Association 
	$90,000,000.00 
	18.0% 

	National Australia Bank Limited 
	$90,000,000.00 
	18.0% 

	SunTrust Bank 
	$90,000,000.00 
	18.0% 

	HSBC Bank Bermuda Limited 
	$65,000,000.00 
	13.0% 

	JPMorgan Chase Bank, N.A. 
	$65,000,000.00 
	13.0% 

	The Bank of Nova Scotia 
	$65,000,000.00 
	13.0% 

	Barclays Bank Plc 
	$35,000,000.00 
	7.0% 

	Total 
	$500,000,000.00 
	100% 

SCHEDULE 7.1 - INDEBTEDNESS
	
				
	Borrower(s)
	Guarantor(s) 
	Date 
	Description of Indebtedness 

	Enstar (EU) Limited 
	Enstar Group Limited 
	April 2, 2018 
	Lease relating to certain premises at One Creechurch Place, London 

SCHEDULE 7.2 - LIENS 

None.

SCHEDULE 7.6 - INVESTMENTS
	
			
	Investing Entity
	Date of Investment 
	Description of Investment 

	Cavello Bay Reinsurance Limited 
	June 14, 2018 
	$50.0 million indirect equity investment in Citco III Limited, a fund administrator with global operations. 

* In addition to the above, Investments include all minority interests in subsidiaries depicted in the separately provided Group Structure Chart of Enstar Group Limited dated December 19, 2018.Exhibit 10.1

 

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

 

DATED AS OF DECEMBER 28, 2018

 

by and among

 

JERNIGAN CAPITAL

OPERATING COMPANY, LLC,

 

as
THE Borrower,

 

KEYBANK NATIONAL ASSOCIATION,

 

THE OTHER LENDERS WHICH ARE PARTIES TO THIS
AGREEMENT

 

AND

 

OTHER LENDERS THAT MAY BECOME

 

PARTIES TO THIS AGREEMENT,

 

AND

 

KEYBANK NATIONAL ASSOCIATION,

 

AS THE AGENT,

 

KEYBANC CAPITAL MARKETS, INC.,

 

RAYMOND JAMES BANK, N.A.

 

AND

 

BMO CAPITAL MARKETS CORP.,

 

AS JOINT LEAD ARRANGERS,

 

AND

 

RAYMOND JAMES BANK, N.A.

 

AND

 

BMO CAPITAL MARKETS CORP.,

 

AS CO-SYNDICATION AGENTS

 

     

     

    

 

Table of Contents

 

	 	 	 	Page
	 	 	 	 
	§1.	DEFINITIONS AND RULES OF INTERPRETATION	1
	 	 	 
	 	§1.1	Definitions	1
	 	§1.2	Rules of Interpretation	37
	 	 	 	 
	§2.	THE CREDIT FACILITY	38
	 	 	 
	 	§2.1	Revolving Credit Loans	38
	 	§2.2	[Intentionally Omitted.]	39
	 	§2.3	Facility Unused Fee	39
	 	§2.4	Reduction and Termination of the Commitments	40
	 	§2.5	Swing Loan Commitment	40
	 	§2.6	Interest on Loans	43
	 	§2.7	Requests for Loans	43
	 	§2.8	Funds for Loans	44
	 	§2.9	Use of Proceeds	45
	 	§2.10	Letters of Credit	45
	 	§2.11	Increase in Total Commitment	48
	 	§2.12	Extension of Maturity Date	51
	 	§2.13	Defaulting Lenders	53
	 	 	 	 
	§3.	REPAYMENT OF THE LOANS	57
	 	 	 
	 	§3.1	Stated Maturity	57
	 	§3.2	Mandatory Prepayments.	57
	 	§3.3	Optional Prepayments	58
	 	§3.4	Partial Prepayments	58
	 	§3.5	Effect of Prepayments	58
	 	 	 	 
	§4.	CERTAIN GENERAL PROVISIONS	58
	 	 	 
	 	§4.1	Conversion Options	58
	 	§4.2	Fees	59
	 	§4.3	Funds for Payments	59
	 	§4.4	Computations	64
	 	§4.5	Suspension of LIBOR Rate Loans	64
	 	§4.6	Illegality	64
	 	§4.7	Additional Interest	65
	 	§4.8	Additional Costs, Etc.	65
	 	§4.9	Capital Adequacy	66
	 	§4.10	Breakage Costs	67
	 	§4.11	Default Interest; Late Charge	67
	 	§4.12	Certificate	67
	 	§4.13	Limitation on Interest	67
	 	§4.14	Certain Provisions Relating to Increased Costs	68
	 	§4.15	Successor LIBOR Rate Index	69
	 	 	 	 
	§5.	COLLATERAL SECURITY; GUARANTORS	70
	 	 	 
	 	§5.1	Collateral	70
	 	§5.2	Appraisal	70

 

    -i-

     

    

 

Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	 	§5.3	Addition of Borrowing Base Assets	71
	 	§5.4	Release of Borrowing Base Assets	72
	 	§5.5	Additional Guarantors	73
	 	§5.6	Release of Certain Guarantors	73
	 	§5.7	Release of Collateral	73
	 	 	 	 
	§6.	REPRESENTATIONS AND WARRANTIES	74
	 	 	 	 
	 	§6.1	Corporate Authority, Etc.	74
	 	§6.2	Governmental Approvals	75
	 	§6.3	Title to Properties	75
	 	§6.4	Financial Statements	75
	 	§6.5	No Material Changes	76
	 	§6.6	Franchises, Patents, Copyrights, Etc.	76
	 	§6.7	Litigation	76
	 	§6.8	No Material Adverse Contracts, Etc.	76
	 	§6.9	Compliance with Other Instruments, Laws, Etc.	77
	 	§6.10	Tax Status	77
	 	§6.11	No Event of Default	77
	 	§6.12	Investment Company Act	77
	 	§6.13	Setoff; Absence of UCC Financing Statements.	77
	 	§6.14	Certain Transactions	78
	 	§6.15	Employee Benefit Plans	78
	 	§6.16	Disclosure	78
	 	§6.17	Trade Name; Place of Business	79
	 	§6.18	Regulations T, U and X	79
	 	§6.19	Environmental Compliance	79
	 	§6.20	Subsidiaries; Organizational Structure	81
	 	§6.21	Leases	82
	 	§6.22	Property	83
	 	§6.23	Brokers	84
	 	§6.24	Other Debt	84
	 	§6.25	Solvency	84
	 	§6.26	No Bankruptcy Filing	84
	 	§6.27	No Fraudulent Intent	84
	 	§6.28	Transaction in Best Interests of the Borrower and Guarantors; Consideration	84
	 	§6.29	Contribution Agreement	85
	 	§6.30	Representations and Warranties of Guarantors	85
	 	§6.31	OFAC	85
	 	§6.32	EEA Financial Institutions	85
	 	§6.33	Borrowing Base Assets	86
	 	§6.34	Ground Lease	86
	 	§6.35	Beneficial Ownership	86
	 	 	 	 
	§7.	AFFIRMATIVE COVENANTS	87

 

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Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	 	§7.1	Punctual Payment	87
	 	§7.2	Maintenance of Office	87
	 	§7.3	Records and Accounts	87
	 	§7.4	Financial Statements, Certificates and Information	87
	 	§7.5	Notices	91
	 	§7.6	Existence; Maintenance of Properties	93
	 	§7.7	Insurance; Condemnation	93
	 	§7.8	Taxes; Liens	98
	 	§7.9	Inspection of Properties and Books	99
	 	§7.10	Compliance with Laws, Contracts, Licenses, and Permits	99
	 	§7.11	Further Assurances	100
	 	§7.12	Management	100
	 	§7.13	Leases of the Property	100
	 	§7.14	Business Operations	100
	 	§7.15	Registered Servicemark	100
	 	§7.16	Ownership of Real Estate	101
	 	§7.17	Distributions of Income to the Borrower	101
	 	§7.18	Plan Assets	101
	 	§7.19	Borrowing Base Assets	101
	 	§7.20	Assignment of Interest Rate Protection	104
	 	§7.21	Sanctions Laws and Regulations	104
	 	§7.22	Beneficial Ownership	105
	 	 	 	 
	§8.	NEGATIVE COVENANTS	105
	 	 	 
	 	§8.1	Restrictions on Indebtedness	105
	 	§8.2	Restrictions on Liens, Etc.	106
	 	§8.3	Restrictions on Investments	108
	 	§8.4	Merger, Consolidation	110
	 	§8.5	Sale and Leaseback	111
	 	§8.6	Compliance with Environmental Laws	111
	 	§8.7	Distributions	113
	 	§8.8	Asset Sales	114
	 	§8.9	Restriction on Prepayment of Indebtedness	114
	 	§8.10	Zoning and Contract Changes and Compliance	114
	 	§8.11	Derivatives Contracts	115
	 	§8.12	Transactions with Affiliates	115
	 	§8.13	Equity Pledges	115
	 	§8.14	Management Fees	115
	 	§8.15	Burdensome Agreements	115
	 	§8.16	Changes to Organizational Documents	116
	 	 	 	 
	§9.	FINANCIAL COVENANTS	116
	 	 	 
	 	§9.1	Borrowing Base Availability	116
	 	§9.2	Consolidated Total Indebtedness to Gross Asset Value	116
	 	§9.3	Adjusted Consolidated EBITDA to Consolidated Fixed Charges	116

 

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Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	 	§9.4	Minimum Consolidated Tangible Net Worth	116
	 	§9.5	Unhedged Variable Rate Debt	117
	 	§9.6	Liquidity	117
	 	§9.7	Adjusted Consolidated EBITDA to Debt Service	117
	 	 	 	 
	§10.	CLOSING CONDITIONS	117
	 	 	 	 
	 	§10.1	Loan Documents	117
	 	§10.2	Certified Copies of Organizational Documents	117
	 	§10.3	Resolutions	117
	 	§10.4	Incumbency Certificate; Authorized Signers	117
	 	§10.5	Opinion of Counsel	118
	 	§10.6	Payment of Fees	118
	 	§10.7	Performance; No Default	118
	 	§10.8	Representations and Warranties	118
	 	§10.9	Proceedings and Documents	118
	 	§10.10	Borrowing Base Qualification Documents	118
	 	§10.11	Compliance Certificate and Borrowing Base Certificate	118
	 	§10.12	Appraised Values	118
	 	§10.13	Consents	118
	 	§10.14	Contribution Agreement	119
	 	§10.15	KYC	119
	 	§10.16	Insurance	119
	 	§10.17	Other	119
	 	 	 	 
	§11.	CONDITIONS TO ALL BORROWINGS	119
	 	 	 	 
	 	§11.1	Prior Conditions Satisfied	119
	 	§11.2	Representations True; No Default	119
	 	§11.3	Borrowing Documents	119
	 	§11.4	Endorsement to Title Policy	120
	 	§11.5	Future Advances Tax Payment	120
	 	 	 	 
	§12.	EVENTS OF DEFAULT; ACCELERATION; ETC.	120
	 	 	 
	 	§12.1	Events of Default and Acceleration	120
	 	§12.2	Certain Cure Periods; Limitation of Cure Periods	123
	 	§12.3	Termination of Commitments	124
	 	§12.4	Remedies	124
	 	§12.5	Distribution of Proceeds	125
	 	§12.6	Collateral Account	126
	 	 	 	 
	§13.	SETOFF	127
	 	 	 	 
	§14.	THE AGENT	127
	 	 	 	 
	 	§14.1	Authorization	127
	 	§14.2	Employees and Agents	128
	 	§14.3	No Liability	128
	 	§14.4	No Representations	128

 

    -iv-

     

    

 

Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	 	§14.5	Payments	129
	 	§14.6	Holders of Notes	129
	 	§14.7	Indemnity	129
	 	§14.8	The Agent as Lender	130
	 	§14.9	Resignation	130
	 	§14.10	Duties in the Case of Enforcement	131
	 	§14.11	Request for Agent Action	131
	 	§14.12	Bankruptcy	131
	 	§14.13	Reliance by the Agent	132
	 	§14.14	Approvals	132
	 	§14.15	The Borrower Not Beneficiary	132
	 	§14.16	Reliance on Hedge Provider	132
	 	 	 	 
	§15.	EXPENSES	133
	 	 	 
	§16.	INDEMNIFICATION	134
	 	 	 
	§17.	SURVIVAL OF COVENANTS, ETC.	135
	 	 	 
	§18.	ASSIGNMENT AND PARTICIPATION	135
	 	 	 
	 	§18.1	Conditions to Assignment by Lenders	135
	 	§18.2	Register	136
	 	§18.3	New Notes	136
	 	§18.4	Participations	137
	 	§18.5	Pledge by Lender	137
	 	§18.6	No Assignment by the Borrower	138
	 	§18.7	Disclosure	138
	 	§18.8	Mandatory Assignment	139
	 	§18.9	Amendments to Loan Documents	139
	 	§18.10	Titled Agents	139
	 	 	 	 
	§19.	NOTICES; EFFECTIVENESS; ELECTRONIC COMMUNICATIONS	140
	 	 	 
	§20.	RELATIONSHIP	142
	 	 	 
	§21.	GOVERNING LAW; CONSENT TO JURISDICTION AND SERVICE	142
	 	 	 
	§22.	HEADINGS	143
	 	 	 
	§23.	COUNTERPARTS	143
	 	 	 
	§24.	ENTIRE AGREEMENT, ETC.	143
	 	 	 
	§25.	WAIVER OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS	143
	 	 	 
	§26.	DEALINGS WITH THE BORROWER	144
	 	 	 
	§27.	CONSENTS, AMENDMENTS, WAIVERS, ETC.	145
	 	 	 
	§28.	SEVERABILITY	146
	 	 	 
	§29.	TIME OF THE ESSENCE	146
	 	 	 
	§30.	NO UNWRITTEN AGREEMENTS	146

 

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Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	§31.	REPLACEMENT NOTES	146
	 	 	 
	§32.	NO THIRD PARTIES BENEFITED	146
	 	 	 
	§33.	PATRIOT ACT	147
	 	 	 
	§34.	ACKNOWLEDGEMENT AND CONSENT TO BAIL-IN OF EEA FINANCIAL INSTITUTIONS	147
	 	 	 
	§35.	WAIVER OF CLAIMS	147
	 	 	 
	§36.	CONSENT TO AMENDMENT AND RESTATEMENT; EFFECT OF AMENDMENT AND RESTATEMENT	148

 

    -vi-

     

    

 

EXHIBITS AND
SCHEDULES

 

	Exhibit A	FORM OF JOINDER AGREEMENT
	Exhibit B	FORM OF REVOLVING CREDIT NOTE
	Exhibit C	FORM OF SWING LOAN NOTE
	Exhibit D	FORM OF REQUEST FOR REVOLVING CREDIT LOAN
	Exhibit E	FORM OF LETTER OF CREDIT REQUEST
	Exhibit F	FORM OF LETTER OF CREDIT APPLICATION
	Exhibit G	FORM OF BORROWING BASE CERTIFICATE
	Exhibit H	FORM OF COMPLIANCE CERTIFICATE
	Exhibit I	FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT
	Exhibit J	FORM OF MORTGAGE
	Exhibit K	FORM OF ASSIGNMENT OF LEASES AND RENTS
	Exhibits L	FORM OF U.S. TAX COMPLIANCE CERTIFICATES
	Exhibit M	FORM OF ASSIGNMENT OF HEDGE AGREEMENT
	Schedule 1.1	LENDERS AND COMMITMENTS
	Schedule 1.2	INITIAL BORROWING BASE PROPERTIES AND LOANS
	Schedule 4.3	ACCOUNTS
	Schedule 5.3	BORROWING BASE QUALIFICATION DOCUMENTS
	Schedule 6.3	TITLE TO PROPERTIES
	Schedule 6.5	NO MATERIAL CHANGES
	Schedule 6.6	TRADEMARKS, TRADENAMES
	Schedule 6.7	PENDING LITIGATION
	Schedule 6.10	TAX STATUS
	Schedule 6.14	CERTAIN TRANSACTIONS
	Schedule 6.19	ENVIRONMENTAL MATTERS
	Schedule 6.20(a)	SUBSIDIARIES OF REIT
	Schedule 6.20(b)	UNCONSOLIDATED AFFILIATES OF REIT AND ITS SUBSIDIARIES
	Schedule 6.20(c)	PROFITS PARTICIPATIONS
	Schedule 6.21	LEASES
	Schedule 6.22	PROPERTY
	Schedule 6.24	OTHER DEBT
	Schedule 6.34	GROUND LEASES

 

    -vii-

     

    

 

first
amended and restated Credit Agreement

 

THIS FIRST AMENDED
AND RESTATED CREDIT AGREEMENT (this “Agreement”) is made as of December 28, 2018, by and among JERNIGAN
CAPITAL OPERATING COMPANY, LLC, a Delaware limited liability company (the “Borrower”), KEYBANK NATIONAL
ASSOCIATION (“KeyBank”), the other lending institutions which are parties to this Agreement as “Lenders”,
and the other lending institutions that may become parties hereto as “Lenders” pursuant to §18, and KEYBANK
NATIONAL ASSOCIATION, as Agent for the Lenders (the “Agent”).

 

RECITALS

 

WHEREAS, Borrower,
Agent and certain of the Lenders entered into that certain Credit Agreement dated as of July 25, 2017, as amended by that certain
First Amendment to Credit Agreement dated as of January 16, 2018, and that certain Second Amendment to Credit Agreement, dated
as of July 25, 2018 (as amended, the “Existing Credit Agreement”); and

 

WHEREAS, the
parties hereto desire to amend and restate the Existing Credit Agreement in its entirety;

 

NOW, THEREFORE,
in consideration of the recitals herein and mutual covenants and agreements contained herein, the parties hereto hereby amend and
restate the Existing Credit Agreement in its entirety and covenant and agree as follows:

 

§1.         DEFINITIONS
AND RULES OF INTERPRETATION.

 

§1.1       Definitions.
The following terms shall have the meanings set forth in this §l or elsewhere in the provisions of this Agreement referred
to below:

 

Additional Commitment
Request Notice. See §2.11(a).

 

Additional Guarantor.
Each additional Subsidiary of the Borrower which becomes a Subsidiary Guarantor pursuant to §5.5.

 

Adjusted Consolidated
EBITDA. With respect to any period of determination, the sum of (a) Consolidated EBITDA for the calendar quarter most
recently ended, annualized, less (b) the amount equal to Capital Reserves for such period.

 

Adjusted Earnings.
With respect to any period of determination, an amount equal to Net Income (Loss) available for common shareholders (after payment
of all Preferred Distributions) for such period plus the sum of (i) non-cash compensation, (ii) depreciation on real estate assets,
(iii) unreimbursed transaction expenses, and (iv) one-time charges.

 

Adjusted Net Operating
Income. On any date of determination the sum of Property NOI from the Borrowing Base Properties or other Real Estate, as applicable,
for the prior calendar quarter most recently ended, annualized, less the Capital Reserve applicable to the Borrowing Base
Properties or other Real Estate, as applicable, for such period.

 

    1

     

    

 

Advisor. JCAP
Advisors, LLC, a Florida limited liability company.

 

Advisory Agreement.
That certain Third Amended and Restated Management Agreement effective as of November 1, 2017 by and among the REIT, the Borrower
and the Advisor.

 

Affected Lender.
See §4.14.

 

Affiliate. An
Affiliate, as applied to any Person, shall mean any other Person directly or indirectly controlling, controlled by, or under common
control with, that Person. For purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling”, “controlled by” and “under common control with”), as applied to any Person,
means (a) the possession, directly or indirectly, of the power to vote twenty percent (20%) or more of the stock, shares, voting
trust certificates, beneficial interest, partnership interests, member interests or other interests having voting power for the
election of directors of such Person or otherwise to direct or cause the direction of the management and policies of that Person,
whether through the ownership of voting securities or by contract or otherwise, or (b) the ownership of (i) a general partnership
interest, (ii) a managing member’s or manager’s interest in a limited liability company or (iii) a limited partnership
interest or preferred stock (or other ownership interest) representing fifty percent (50%) or more of the outstanding limited partnership
interests, preferred stock or other ownership interests of such Person. Notwithstanding the foregoing, the mere ownership by Borrower
of a Profits Participation without more shall not make a Collateral Borrower, or if there is a Mezzanine Loan, the Person owning
an interest in such Collateral Borrower in whom such Profits Participation is owned, an Affiliate of Borrower.

 

Agent. KeyBank
National Association, acting as administrative agent for the Lenders, and its successors and assigns.

 

Agent’s Head
Office. The Agent’s head office located at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other location as
the Agent may designate from time to time by notice to the Borrower and the Lenders.

 

Agent’s Special
Counsel. Dentons US LLP or such other counsel as selected by the Agent.

 

Agreement. This
First Amended and Restated Credit Agreement, including the Schedules and Exhibits hereto.

 

Agreement Regarding
Fees. See §4.2.

 

Applicable Law.
All applicable provisions of constitutions, statutes, rules, regulations, guidelines and orders of all Governmental Authorities
and all orders and decrees of all courts, tribunals and arbitrators.

 

Applicable Margin.
(a) The Applicable Margin for LIBOR Rate Loans and Base Rate Loans shall be as set forth below based on whether such Loan or issuance
of such Letter of Credit is considered a Tranche A Loan, a Tranche B Loan or a Tranche C Loan:

 

    2

     

    

 

	Tranche	 	LIBOR Rate Loans	 	 	Base Rate Loans	 
	 	 	 	 	 	 	 
	Tranche A Loan	 	 	3.25	%	 	 	2.25	%
	 	 	 	 	 	 	 	 	 
	Tranche B Loan	 	 	2.75	%	 	 	1.75	%
	 	 	 	 	 	 	 	 	 
	Tranche C Loan	 	 	2.25	%	 	 	1.25	%

 

Appraisal. An
MAI appraisal of the value of a parcel of Real Estate, determined on an “as-is” or “as-stabilized” value
basis, as applicable, performed by an independent appraiser, selected by the Agent, who is not an employee of REIT, the Borrower,
any of their respective Subsidiaries, the Agent or a Lender, the form and substance of such appraisal and the identity of the appraiser
to be in compliance with the Financial Institutions Reform, Recovery and Enforcement Act of 1989, as amended, the rules and regulations
adopted pursuant thereto and all other regulatory laws and policies (both regulatory and internal) applicable to the Lenders and
otherwise reasonably acceptable to the Agent.

 

Arrangers. KBCM,
Raymond James Bank, N.A. and BMO Capital Markets Corp., or any successor of any of them.

 

As-Is Appraised Value.
The “as-is” value of a parcel of Real Estate determined by the most recent Appraisal of such Real Estate obtained pursuant
to this Agreement; subject, however, to such changes or adjustments to the value determined thereby as may be required
by the appraisal department of the Agent in its good faith business judgment.

 

As-Stabilized Appraised
Value. The “as-stabilized” value of a parcel of Real Estate determined by the most recent Appraisal of such Real
Estate obtained pursuant to this Agreement; subject, however, to such changes or adjustments to the value determined
thereby as may be required by the appraisal department of the Agent in its good faith business judgment.

 

Assignment and Acceptance
Agreement. See §18.1.

 

Assignment of Documents.
Collectively, each Collateral Assignment of Documents executed by the Borrower and/or a Subsidiary Guarantor, respectively, in
favor of the Agent, such assignments delivered on or after the date of this Agreement to be in substantially the form of the Assignment
of Documents delivered as of the date of the Existing Credit Agreement with such changes as Agent may reasonably require as a result
of state law or factors relating to the applicable Borrowing Base Loan or Mezzanine Loan.

 

Assignment of Hedge.
An Assignment of Hedge Agreement by the Borrower to the Agent for the benefit of the Lenders, as the same may be modified and amended,
pursuant to which the Interest Hedge described in §7.20 is pledged as security for the Obligations and the Hedge Obligations,
and any financing statements that may be delivered in connection therewith, such assignment to be in the form of Exhibit M
attached hereto, with such changes thereto as Agent may reasonably require after reviewing the Interest Hedge.

 

    3

     

    

 

Assignment of Leases
and Rents. Each of the assignments of leases and rents from a Subsidiary Guarantor that is an owner of a Borrowing Base Property
to the Agent, as it may be modified or amended, pursuant to which there shall be assigned to the Agent for the benefit of the Lenders
a security interest in the interest of such Subsidiary Guarantor as lessor with respect to all Leases of all or any part of each
Borrowing Base Property, each such assignment to be substantially in the form of Exhibit K attached hereto, with such changes
thereto as Agent may reasonably require as a result of state law or practice.

 

Authorized Officer.
Any of the following Persons: John A. Good, Jonathan L. Perry, Kelly P. Luttrell, and such other Persons as the Borrower shall
designate in a written notice to the Agent.

 

Bail-In Action.
The exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of
an EEA Financial Institution.

 

Bail-In Legislation.
With respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council
of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In
Legislation Schedule.

 

Balance Sheet Date.
September 30, 2018.

 

Bankruptcy Code.
Title 11, U.S.C.A., as amended from time to time or any successor statute thereto.

 

Base Rate. The
greater of (a) the fluctuating annual rate of interest announced from time to time by the Agent at the Agent’s Head
Office as its “prime rate”, and (b) one half of one percent (0.5%) above the Federal Funds Effective Rate, and
(c) LIBOR for an Interest Period of one (1) month plus one percent (1.0%). The Base Rate is a reference rate used by the lender
acting as Agent in determining interest rates on certain loans and is not intended to be the lowest rate of interest charged by
the lender acting as the Agent or any other lender on any extension of credit to any debtor. Any change in the rate of interest
payable hereunder resulting from a change in the Base Rate shall become effective as of 12:01 a.m. on the Business Day on which
such change in the Base Rate becomes effective, without notice or demand of any kind.

 

Base Rate Loans.
Collectively, (a) the Revolving Credit Loans bearing interest calculated by reference to the Base Rate and (b) the Swing
Loans.

 

Beneficial Ownership
Certification. As to Borrower, a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation
which is otherwise in form and substance satisfactory to the Administrative Agent or any Lender requesting the same.

 

Beneficial Ownership
Regulation. 31 C.F.R. § 1010.230.

 

Borrower. As defined
in the preamble hereto.

 

Borrowing Base Assets.
Collectively, (a) the Borrowing Base Properties and (b) the Borrowing Base Loans. The initial Borrowing Base Loans (the “Initial
Borrowing Base Loans”) are identified on Schedule 1.2 attached hereto, and are hereby approved by the Agent and the
Lenders.

 

    4

     

    

 

Borrowing Base Availability.
The sum of:

 

(a)          for
Tranche A Loans: Borrowing Base Availability for Borrowing Base Loans, as calculated for each individual Borrowing Base Loan, shall
be the amount which is the lesser of:

 

(i)          The
maximum principal amount which would not cause the Outstanding Loans and Letter of Credit Liabilities under the Tranche A Loans
to be greater than sixty percent (60%) of the Mortgage Loan Collateral Value; and

 

(ii)         The
maximum principal amount which would not cause the Outstanding Loans and Letter of Credit Liabilities under the Tranche A Loans
to be greater than fifty percent (50%) of the underlying Real Estate Asset Fair Value.

 

The aggregate Borrowing Base Availability
for Tranche A Loans shall be the sum of the amount determined under this clause (a) for each Borrowing Base Loan.

 

(b)          for
Tranche B Loans: Borrowing Base Availability for Non-Stabilized Real Estate Collateral, as calculated for each individual applicable
Borrowing Base Property, shall be the amount which is the lesser of:

 

(i)          The
maximum principal amount which would not cause the Outstanding Loans and Letter of Credit Liabilities under the Tranche B Loan
to be greater than sixty percent (60%) of the Real Estate As-Stabilized Value of such Borrowing Base Property;

 

(ii)         The
maximum principal amount which would not cause the Outstanding Loans and Letter of Credit Liabilities under the Tranche B Loan
to be greater than seventy-five percent (75%) of the Property Development Cost of such Borrowing Base Property; and

 

(iii)        Whichever
of clause (A), (B) or (C) is then applicable:

 

(A)         The
maximum principal amount which would not cause the ratio of (1) Stabilized Adjusted Net Operating Income from such Borrowing Base
Property divided by (2) the Implied Debt Service Coverage Amount to be less than 1.35 to 1.00. For purposes of this calculation,
the outstanding balance of Loans and Letter of Credit Liabilities for the Implied Debt Service Coverage Amount will be the maximum
principal amount that such Borrowing Base Property would support in compliance with the terms of this subsection.

 

(B)         For
any Non-Stabilized Real Estate Collateral that has been included as a Borrowing Base Asset under Tranche B for greater than eighteen
(18) months, the maximum principal amount which would not cause the ratio of (1) Actual Adjusted Net Operating Income for the applicable
Non-Stabilized Real Estate Collateral divided by (2) the Implied Debt Service Coverage Amount to be less than 0.50 to 1.00. For
purposes of this calculation, the oustanding balance of Loans and Letter of Credit Liabilities for the Implied Debt Service Coverage
Amount will be the maximum principal amount that such Borrowing Base Property would support in compliance with the terms of this
subsection.

 

    5

     

    

 

(C)         For
any Non-Stabilized Real Estate Collateral that has been included as a Borrowing Base Asset under Tranche B for greater than thirty
(30) months, the maximum principal amount which would not cause the ratio of (1) Actual Adjusted Net Operating Income for the applicable
Non-Stabilized Real Estate Collateral divided by (2) the Implied Debt Service Coverage Amount to be less than 1.00 to 1.00. For
purposes of this calculation, the outstanding balance of the Loans and Letter of Credit Liabilities for the Implied Debt Service
Coverage Amount will be the maximum principal amount that such Borrowing Base Property would support in compliance with the terms
of this subsection.

 

The aggregate Borrowing Base Availability
for Tranche B Loans shall be the sum of the amount determined under this clause (b) for each applicable Borrowing Base Property.

 

(c)          for
Tranche C Loans: Borrowing Base Availability for Stabilized Real Estate Collateral, as calculated for each individual applicable
Borrowing Base Property, shall be the lesser of:

 

(i)          The
maximum principal amount which would not cause the Outstanding Loans and Letter of Credit Liabilities under the Tranche C Loan
to be greater than sixty-five percent (65%) of the Real Estate As-Is Value; and

 

(ii)         The
maximum principal amount which would not cause the ratio of (i) Adjusted Net Operating Income from such Borrowing Base Property
divided by (ii) the Implied Debt Service Coverage Amount to be less than 1.30 to 1.00. For purposes of this calculation, the outstanding
balance of the Loans and Letter of Credit Liabilities for the Implied Debt Service Coverage Amount will be the maximum principal
amount that such Borrowing Base Property would support in compliance with the terms of this subsection.

 

The aggregate Borrowing Base Availability
for Tranche C Loans shall be the sum of the amount determined under this clause (c) for each applicable Borrowing Base Property.

 

(d)          Notwithstanding
the foregoing, the Borrowing Base Availability shall be reduced by the amount of the Operating and Interest Holdback.

 

Notwithstanding the foregoing, (x) if the
Borrowing Base Availability attributable to a Borrowing Base Property that is encumbered by a Mortgage increases after such property
first becomes a Borrowing Base Property, such increased value shall not be included in the calculation of Borrowing Base Availability
until Borrower increases the coverage under the Title Policy for such Borrowing Base Property (and any tie-in endorsements included
in the Title Policies for the other Borrowing Base Properties) to 110% of such increased Borrowing Base Availability, and (y) the
Borrowing Base Availability attributable to a Borrowing Base Property shall not exceed the principal amount to which recovery under
the applicable Mortgage is limited provided that such Mortgage may be amended to increase such limit.

 

    6

     

    

 

Borrowing Base Certificate.
See §7.4(c).

 

Borrowing Base Loan.
Each of the loans which has been approved by the Agent and the Required Lenders for inclusion in the calculation of Tranche A Availability
within the Borrowing Base Availability in accordance with the terms of this Agreement, and which is secured by a first priority
mortgage loan on a Self-Storage Property which constitutes Eligible Real Estate and satisfies the conditions of §7.19, and
which such mortgage loans are made pursuant to the forms of loan documents previously approved by Agent, and is pledged to Agent
as Collateral pursuant to the Assignment of Documents.

 

Borrowing Base Loan
Documents. Originals of all documents, instruments, agreements, assignments and certificates, including without limitation,
any and all loan or credit agreements, notes, allonges or endorsements, mortgages, assignments of leases and rents, security agreements,
pledge agreements, assignments of contracts, environmental indemnities, guaranties, mortgagee’s title insurance policies,
opinions of counsel, evidences of authorization or incumbency, escrow instructions and UCC-1 financing statements, that are or
may be executed by (and acknowledged where applicable) and recorded and filed against a Collateral Borrower or guarantor in connection
with a Borrowing Base Loan, as the same may be amended or otherwise modified from time to time in accordance with this Agreement.

 

Borrowing Base Property
or Borrowing Base Properties. At the time of determination, the Eligible Real Estate owned by a Subsidiary Guarantor and which
satisfies the provisions of this Agreement to be included in the calculation of Tranche B Availability or Tranche C Availability
within the Borrowing Base Availability, and has actually been included in the calculation of Borrowing Base Availability, and that
is security for the Obligations pursuant to the Mortgages and Assignments of Leases and Rents.

 

Borrowing Base Qualification
Documents. See Schedule 5.3 attached hereto.

 

Breakage Costs.
The cost to any Lender of re-employing funds bearing interest at LIBOR incurred (or reasonably expected to be incurred) in connection
with (a) any payment of any portion of the Loans bearing interest at LIBOR prior to the termination of any applicable Interest
Period, (b) the conversion of a LIBOR Rate Loan to any other applicable interest rate on a date other than the last day of
the relevant Interest Period, or (c) the failure of the Borrower to draw down, on the first day of the applicable Interest
Period, any amount as to which the Borrower has elected a LIBOR Rate Loan.

 

Building. With
respect to each Borrowing Base Asset or other parcel of Real Estate, all of the buildings, structures and improvements now or hereafter
located thereon.

 

Business Day.
Any day on which banking institutions located in the same city and State as the Agent’s Head Office are located are open
for the transaction of banking business and, in the case of LIBOR Rate Loans, which also is a LIBOR Business Day.

 

Capitalization Rate.
The Capitalization Rate shall be six and three-fourths percent (6.75%).

 

Capital Reserve.
For any period, an amount equal to $0.10 multiplied by the Net Rentable Area of the Buildings on the Real Estate.

 

    7

     

    

 

Capitalized Lease
Obligation. For any person, Capitalized Lease Obligation means the monetary obligation of such Person under any lease of any
real or personal property, or a combination thereof by such Person as lessee which would, in accordance with GAAP, be required
to be accounted for as a financing lease on the balance sheet of such Person, and the amount of such obligations shall be the capitalized
amount thereof.

 

Capitalized Value.
As of any date of determination with respect to Real Estate, the amount equal to (a) the Adjusted Net Operating Income from such
Real Estate for the immediately preceding calendar quarter, annualized, divided by (b) the Capitalization Rate.

 

CERCLA. The federal
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended from time to time, and regulations promulgated
thereunder.

 

Change of Control.
A Change of Control shall exist upon the occurrence of any of the following:

 

(a)          any
Person (including a Person’s Affiliates and associates) or group (as that term is understood under Section 13(d) of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the rules and regulations thereunder)
shall have acquired beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of a percentage (based on voting
power, in the event different classes of stock or interests shall have different voting powers) of the voting stock or voting interests
of REIT equal to at least thirty percent (30%);

 

(b)          
as of any date a majority of the Board of Directors or Trustees or similar body (the “Board”) of REIT or the
Borrower consists of individuals who were not either (i) directors or trustees of REIT or the Borrower as of the corresponding
date of the previous year, or (ii) selected, nominated or approved to become directors or trustees by the Board of REIT or
the Borrower of which a majority consisted of individuals described in clause (i) above, or (iii) selected or nominated
to become directors or trustees by the Board of REIT or the Borrower, which majority consisted of individuals described in clause
(i) above and individuals described in clause (ii) above;

 

(c)          Any
increase to the size of the Board of REIT as a result of the application of the terms of the Series A Preferred Stock Private Placement;

 

(d)          REIT
or the Borrower consolidates with, is acquired by, or merges into or with any Person (other than a merger permitted by §8.4);

 

(e)          REIT
fails to (i) be the sole managing member of Borrower, (ii) own, directly or indirectly, free of any lien, encumbrance
or other adverse claim, at least seventy-five percent (75%) of the economic, voting and beneficial interest of the Borrower, or
(iii) control the Borrower;

 

(f)          the
Borrower fails to own, directly or indirectly, free of any lien, encumbrance or other adverse claim (other than any Lien of the
Agent granted pursuant to the Loan Documents), at least one hundred percent (100%) of the economic, voting and beneficial interest
of each Subsidiary Guarantor;

 

    8

     

    

 

(g)          before
the Internalization, the Advisor shall fail to be the Advisor of the Borrower;

 

(h)          Before
the Internalization, Dean Jernigan shall fail to own, directly or indirectly, at least a majority of the voting interests of the
Advisor; or

 

(i)          any
of Dean Jernigan, John Good, or Kelly Luttrell, shall cease to be in senior management of the REIT and actively involved in the
daily activities and operations of the REIT and a competent and experienced officer shall not be approved by the Required Lenders
within ninety (90) days of such event, which approval the Required Lenders shall not unreasonably withhold, condition or delay.

 

Closing Date.
The date of this Agreement.

 

Code. The Internal
Revenue Code of 1986, as amended, and all regulations and formal guidance issued thereunder.

 

Collateral. All
of the property, rights and interests of the Borrower and its Subsidiaries which are subject to the security interests, security
title and liens created by the Security Documents.

 

Collateral Account.
A special deposit account established by the Agent pursuant to §12.6 and under its sole dominion and control.

 

Collateral Borrower.
The borrower of a Borrowing Base Loan approved by Agent.

 

Commitment. With
respect to each Lender, the amount set forth on Schedule 1.1 hereto as the amount of such Lender’s commitment
to make or maintain Revolving Credit Loans or to participate in Swing Loans to the Borrower and to participate in Letters of Credit
for the account of the Borrower, as the same may be changed from time to time in accordance with the terms of this Agreement.

 

Commitment Increase.
See §2.11(a).

 

Commitment Increase
Date. See §2.11(a).

 

Commitment Percentage.
With respect to each Lender, the percentage set forth on Schedule 1.1 hereto as such Lender’s percentage of the Total
Commitment, as the same may be changed from time to time in accordance with the terms of this Agreement; provided that if the Commitments
of the Lenders have been terminated as provided in this Agreement, then the Commitment Percentage of each Lender shall be determined
based on the Commitment Percentage of such Lender immediately prior to such termination and after giving effect to any subsequent
assignments made pursuant to the terms hereof.

 

Commodity Exchange
Act. The Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute.

 

    9

     

    

 

Communications.
See §7.4.

 

Compliance Certificate.
See §7.4(c).

 

Condemnation Proceeds.
All compensation, awards, damages, judgments and proceeds awarded to the Borrower or a Subsidiary Guarantor by reason of any Taking,
net of all reasonable and customary amounts actually expended to collect the same, including, without limitation, reasonable and
customary amounts expended in negotiating, litigating, if appropriate, or investigating the amount of such compensation, awards,
damages, judgments and proceeds.

 

Connection Income
Taxes. Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes
or branch profits Taxes.

 

Consolidated.
With reference to any term defined herein, that term as applied to the accounts of a Person and its Subsidiaries, determined on
a consolidated basis in accordance with GAAP.

 

Consolidated EBITDA.
With respect to any period, an amount equal to the EBITDA of REIT, the Borrower and their respective Subsidiaries for such period
determined on a Consolidated basis plus (without duplication) such Person’s Equity Percentage of EBITDA of its Unconsolidated
Affiliates and Subsidiaries of Borrower that are not Wholly-Owned Subsidiaries for such period.

 

Consolidated Fixed
Charges. With respect to any period, the sum of (a) Debt Service and (b) the aggregate of all Preferred Distributions. Notwithstanding
the foregoing, the amount used in (b) above will only represent the actual Preferred Distributions payable in cash. Such Person’s
Equity Percentage in the fixed charges referred to above of its Unconsolidated Affiliates and Subsidiaries of Borrower that are
not Wholly-Owned Subsidiaries shall be included (without duplication) in the determination of Consolidated Fixed Charges.

 

Consolidated Tangible
Net Worth. As of any date of determination, for the REIT and its Subsidiaries on a consolidated basis, an amount equal to (a) Gross
Asset Value minus (b) Consolidated Total Indebtedness.

 

Consolidated Total
Indebtedness. All Indebtedness of REIT and its Subsidiaries determined on a Consolidated basis and shall include (without duplication),
such Person’s Equity Percentage of the Indebtedness of its Unconsolidated Affiliates and Subsidiaries of Borrower that are
not Wholly-Owned Subsidiaries.

 

Contractual Obligation.
As to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which
such Person is a party or by which it or any of its property is bound.

 

Contribution Agreement.
The Contribution Agreement dated as of even date herewith among the Borrower, REIT and each Additional Guarantor which may hereafter
become a party thereto, as the same may be modified, amended or ratified from time to time.

 

    10

     

    

 

Conversion/Continuation
Request. A notice given by the Borrower to the Agent of its election to convert or continue a Loan in accordance with §4.1.

 

Debt Service.
With respect to any period, the sum of (a) Interest Expense and (b) the aggregate of all scheduled principal payments on Indebtedness
(but excluding (i) balloon payments of principal due upon the stated maturity of any Indebtedness, and (ii) payments of principal
outstanding under this Agreement) of REIT, Borrower and their respective Subsidiaries according to GAAP made or required to be
made during such fiscal period, measured on a consolidated basis.

 

Default. See §12.1.

 

Default Rate.
See §4.11.

 

Defaulted Loan.
A Borrowing Base Loan with respect to which a default (other than a payment default) occurs, under such Borrowing Base Loan that
continues unremedied for the applicable grace or cure period under the terms of such Borrowing Base Loan but in any event not more
than sixty (60) days (or, if no grace period is specified, for sixty (60) days).

 

Defaulting Lender.
Any Lender that, as reasonably determined by the Agent, (a) has failed to (i) fund all or any portion of its Loans within
two (2) Business Days of the date such Loans were required to be funded by it hereunder unless such Lender notifies the Agent and
the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent
to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such
writing) has not been satisfied, or (ii) pay to Agent, any Issuing Lender, any Swing Loan Lender or any other Lender any other
amount required to be paid by it hereunder (including in respect of its Loans or participation in Letters of Credit or Swing Loans)
within two (2) Business Days of the date when due, (b) has notified the Borrower, the Agent or any Lender that it does not intend
to comply with its funding obligations hereunder or has made a public statement to that effect unless with respect to this clause
(b), such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position
is based on such Lender’s determination that a condition precedent to funding (which condition precedent, together with any
applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied, (c) has failed,
within three (3) Business Days after request by the Agent, to confirm in a manner reasonably satisfactory to the Agent that it
will comply with its funding obligations; provided that, notwithstanding the provisions of §2.13, such Lender shall cease
to be a Defaulting Lender upon the Agent’s receipt of confirmation that such Defaulting Lender will comply with its funding
obligations, or (d) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any
bankruptcy, insolvency, reorganization, liquidation, conservatorship, assignment for the benefit of creditors, moratorium, receivership,
rearrangement or similar debtor relief law of the United States or other applicable jurisdictions from time to time in effect,
including any law for the appointment of the Federal Deposit Insurance Corporation or any other state or federal regulatory authority
as receiver, conservator, trustee, administrator or any similar capacity, (ii) had a receiver, conservator, trustee, administrator,
assignee for the benefit of creditors or similar Person, including the Federal Deposit Insurance Corporation or any other state
or federal regulatory authority acting in such capacity, charged with reorganization or liquidation of its business or a custodian
appointed for it, (iii) taken any action in furtherance of, or indicated its consent to, approval of or acquiescence in any such
proceeding or appointment, or (iv) is the subject of a Bail-In Action; provided that a Lender shall not be a Defaulting Lender
solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company
thereof by a governmental authority (including any agency, instrumentality, regulatory body, central bank or other authority) so
long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts of the
United States or from the enforcement of judgments or writs of attachment of its assets or permit such Lender (or such governmental
authority or instrumentality) to reject, repudiate, disavow, or disaffirm any contracts or agreements made with such Person). Any
determination by the Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be
conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to §2.13(g))
upon delivery of written notice of such determination to the Borrower and each Lender.

 

    11

     

    

 

Delinquent Loan.
A Borrowing Base Loan for which (a) any related loan payment (other than any payment due at maturity) has not been received on
or before the date that is sixty (60) days after the date on which such payment is due pursuant to the related Borrowing Base Loan
Document; provided, that a Delinquent Loan shall remain a Delinquent Loan until the related Collateral Borrower cures such delinquency
and makes two (2) successive monthly payments on a timely basis, without regard to any related grace or cure period, or (b) any
payment due on the scheduled maturity date of such Borrowing Base Loan has not been received on or before the date on which such
payment is due.

 

Derivatives Contract.
Any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity
options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options
or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions,
cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency
options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to
enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement. Not in
limitation of the foregoing, the term “Derivatives Contract” includes any and all transactions of any kind,
and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published
by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other
master agreement of similar type, including any such obligations or liabilities under any such master agreement.

 

Designated Person.
See §6.31.

 

Development Property.
Any Real Estate owned or acquired by the Borrower or its Subsidiaries and on which such Person is pursuing construction of one
or more buildings for use as a Self-Storage Property and for which construction is proceeding to completion without undue delay
from permit denial, construction delays or otherwise, all pursuant to the ordinary course of business of the Borrower or its Subsidiaries.

 

    12

     

    

 

Directions. See
§14.14.

 

Disqualifying Environmental
Event. Any actual release of Hazardous Substances or any violation of Environmental Laws or any other environmental event with
respect to any Borrowing Base Property or real estate securing a Borrowing Base Loan that could reasonably be expected to cost
in excess of $500,000 to remediate or, which, with respect to all of the Borrowing Base Assets, could reasonably be expected to
cost in excess of $5,000,000 in the aggregate to remediate.

 

Disqualifying Structural
Event. Any structural issue which, with respect to any Borrowing Base Property or real estate securing a Borrowing Base Loan,
could reasonably be expected to cost in excess of $500,000 to remediate or repair or, which, with respect to all of the Borrowing
Base Assets, could reasonably be expected to cost in excess of $2,000,000 in the aggregate to remediate or repair.

 

Distribution.
Any (a) dividend or other distribution, direct or indirect, on account of any Equity Interest of REIT or any of its Subsidiaries
now or hereafter outstanding, except a dividend payable solely in Equity Interests to the holders of that class; (b) redemption,
conversion, exchange, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect,
of any Equity Interest of REIT or any of its Subsidiaries now or hereafter outstanding; and (c) payment made to retire, or
to obtain the surrender of, any outstanding warrants, options or other rights to acquire any Equity Interests of REIT or any of
its Subsidiaries now or hereafter outstanding. Distributions from any Subsidiary of the Borrower and from any Unconsolidated Affiliates
to, directly or indirectly, the Borrower or REIT shall be excluded from this definition.

 

Dollars or $.
Dollars in lawful currency of the United States of America.

 

Domestic Lending Office.
Initially, the office of each Lender designated as such on Schedule 1.1 hereto; thereafter, such other office of such
Lender, if any, located within the United States that will be making or maintaining Base Rate Loans.

 

Drawdown Date.
The date on which any Loan is made or is to be made, and the date on which any Loan which is made prior to the Revolving Credit
Maturity Date is converted in accordance with §4.1.

 

EBITDA. With respect
to the REIT and its Subsidiaries for any applicable period, an amount equal to, without double-counting, the consolidated Net Income
(Loss) of the Borrower, the Guarantor and their respective Subsidiaries determined in accordance with GAAP (before preferred stock
distributions, minority interests and excluding the adjustment of rent to straight-line rent) for such period, calculated without
regard to gains or losses on early retirement of debt or debt restructuring, debt modification charges, and prepayment premiums,
plus (x) the following to the extent deducted in computing such Net Income (Loss) for such period: (i) Interest Expense for such
period, (ii) losses or gains attributable to the sale or other disposition of assets or debt restructurings in such period, (iii)
real estate depreciation and amortization for such period, (iv) acquisition costs related to the acquisition of Real Estate that
were capitalized prior to FAS 141-R which do not represent a recurring cash item in such period or in any future period, (v) unreimbursed
transaction expenses, (vi) other non-cash charges for such period, and (vii) any negative change in fair value of investments;
and minus (y) the following to the extent added in computing such Net Income (Loss) for such period: (i) all gains attributable
to the sale or other disposition of assets in such period, and (ii) any positive change in fair value of investments. The Borrower’s,
the Guarantor’s, and any Subsidiary’s Equity Percentage of the items comprising EBITDA of any Unconsolidated Affiliate
and non-Wholly-Owned Subsidiary will be included in EBITDA, calculated in a manner consistent with the above described treatment
for the Borrower, the REIT and their respective Subsidiaries.

 

    13

     

    

 

EEA Financial Institution.
(a) Any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA
Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause
(a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

EEA Member Country.
Any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

EEA Resolution Authority.
Any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including
any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

Electronic System.
See §7.4.

 

Eligible Real Estate.
Real Estate or real estate securing a Borrowing Base Loan which at all times satisfies the following requirements (unless as to
any specific requirements as otherwise waived or approved by the Required Lenders):

 

		(a)	which (except with respect to a Borrowing Base Loan) is
wholly-owned in fee or leased under a Ground Lease as to which no default or event of default exists by a direct or indirect Wholly-Owned
Subsidiary of Borrower that is a Subsidiary Guarantor, and with respect to a Borrowing Base Loan, is wholly-owned in fee by the
Collateral Borrower;

 

		(b)	which is located within the fifty (50) States of the United
States or the District of Columbia;

 

		(c)	which is improved by a completed, open and operating Self-Storage
Property, as to which a certificate of occupancy or equivalent has been issued to the extent that the same are issued in that
jurisdiction;

 

		(d)	as to which all of the representations set forth in §6
of this Agreement and in the other Loan Documents concerning such Borrowing Base Asset are materially true and correct;

 

		(e)	[reserved];

 

    14

     

    

 

		(f)	[reserved];

 

		(g)	which Real Estate or real estate securing a Borrowing Base
Loan is not the subject of a Disqualifying Environmental Event or Disqualifying Structural Event and is free of title defects
or other adverse matters which would materially, adversely impact the property’s value or cash flow;

 

		(h)	as to which the Agent has received and approved all Borrowing
Base Qualification Documents required by the Agent, or will receive and approve them prior to inclusion of such Real Estate in
the calculation of the Borrowing Base Availability; and

 

		(i)	as to which, notwithstanding anything to the contrary contained
herein, the Agent and the Required Lenders have approved for inclusion in the calculation of the Borrowing Base Availability.

 

Employee Benefit Plan.
Any employee benefit plan within the meaning of Section 3(3) of ERISA maintained or contributed to by REIT or any ERISA Affiliate,
other than a Multiemployer Plan.

 

Environmental Engineer.
Any firm of independent professional engineers or other scientists generally recognized as expert in the detection, analysis and
remediation of Hazardous Substances and related environmental matters and acceptable to the Agent in its reasonable discretion.

 

Environmental Laws.
As defined in the Indemnity Agreement.

 

Environmental Reports.
See §6.19.

 

EPA. See §6.19(b).

 

Equity Interests.
With respect to any Person, (a) any share of capital stock, membership interests or partnership interests of (or other ownership
or profit interests in) such Person, (b) any warrant, option or other right for the purchase or other acquisition from such
Person of (i) any share of capital stock of, membership interest or partnership interests (or other ownership or profit interests
in) such Person, or (ii) any security convertible into or exchangeable for any share of capital stock of (or other ownership
or profit interests in) such Person or warrant, right or option for the purchase or other acquisition from such Person of such
shares (or such other interests) and whether or not such share, warrant, option, right or other interest is authorized or otherwise
existing on any date of determination, and (c) any other ownership or profit interest in such Person (including, without limitation,
partnership, member or trust interests therein), whether voting or nonvoting.

 

Equity Offering.
The issuance and sale after the Closing Date by REIT or any of its Subsidiaries of any equity securities of such Person (other
than equity securities issued to REIT or any one or more of its Subsidiaries in their respective Subsidiaries) and the contribution
of additional equity capital to Borrower.

 

    15

     

    

 

Equity Percentage.
The aggregate ownership percentage of REIT or its Subsidiaries in each Unconsolidated Affiliate or Subsidiary that is not a Wholly-Owned
Subsidiary, which shall be calculated as the greater of (a) such Person’s direct or indirect nominal capital ownership
interest in the Unconsolidated Affiliate or such Subsidiary as set forth in the Unconsolidated Affiliate’s or such Subsidiary’s
organizational documents, and (b) such Person’s direct or indirect economic ownership interest in the Unconsolidated
Affiliate or such Subsidiary reflecting such Person’s current allocable share of income and expenses of the Unconsolidated
Affiliate or such Subsidiary.

 

ERISA. The Employee
Retirement Income Security Act of 1974, as amended and in effect from time to time and all regulations and formal guidelines issued
thereunder.

 

ERISA Affiliate.
Any Person which is treated as a single employer with REIT or its Subsidiaries under Section 414 of the Code or Section 4001
of ERISA and any predecessor entity of any of them.

 

ERISA Reportable Event.
A reportable event with respect to a Guaranteed Pension Plan within the meaning of Section 4043 of ERISA and the regulations
promulgated thereunder as to which the requirement of notice has not been waived or any other event with respect to which the Borrower,
a Guarantor or an ERISA Affiliate could have liability under Section 4062(e) or Section 4063 of ERISA.

 

EU Bail-In Legislation
Schedule. The EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect
from time to time.

 

Event of Default.
See §12.1.

 

Excluded Hedge Obligation.
With respect to any Guarantor, any Hedge Obligation, if, and to the extent that, all or a portion of the guarantee of such Guarantor
of, or the grant by such Guarantor of a security interest to secure, such Hedge Obligation (or any guarantee thereof) is or becomes
illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application
or official interpretation of any thereof) by virtue of such Guarantor’s failure for any reason to constitute an “eligible
contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guarantee of
such Guarantor or the grant of such security interest becomes effective with respect to such Hedge Obligation. If a Hedge Obligation
arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Hedge Obligation
that is attributable to swaps for which such guarantee or security interest is or becomes illegal.

 

Excluded Taxes.
Any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a
Recipient, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in
each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the
case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision
thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts
payable to or for the account of such Lender with respect to an applicable interest in a Loan or its Commitment pursuant to an
Applicable Law in effect on the date on which (i) such Lender acquires such interest in the Loan or its Commitment (other than
pursuant to an assignment request by the Borrower under §4.14 as a result of costs sought to be reimbursed pursuant to §4.3
or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to §4.3, 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 Recipient’s failure to comply with
§4.3(g) and (d) any U.S. federal withholding Taxes imposed under FATCA.

 

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Existing Credit Agreement.
As defined in the recitals.

 

FATCA. 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, any applicable
intergovernmental agreement entered into thereunder (and any foreign legislation implemented to give effect to such intergovernmental
agreements) and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

 

Federal Funds Effective
Rate. For any day, the rate per annum (rounded upward to the nearest one-hundredth of one percent (1/100 of 1%)) announced
by the Federal Reserve Bank of Cleveland on such day as being the weighted average of the rates on overnight federal funds transactions
arranged by federal funds brokers on the previous trading day, as computed and announced by such Federal Reserve Bank in substantially
the same manner as such Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds
Effective Rate.” Notwithstanding the foregoing, if the Federal Funds Effective Rate shall be less than zero, such rate shall
be deemed to be zero for the purposes of this Agreement.

 

Foreign Lender.
If the Borrower is a U.S. Person, a Lender that is not a U.S. Person, and if the Borrower is not a U.S. Person, a Lender that is
resident or organized under the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.

 

Fee Owner. The
applicable owner of the fee interest in a Borrowing Base Property that is subject to a Ground Lease.

 

Fronting Exposure.
At any time there is a Defaulting Lender, (a) with respect to the Issuing Lender, such Defaulting Lender’s Commitment
Percentage of the outstanding Letter of Credit Liabilities other than Letter of Credit Liabilities as to which such Defaulting
Lender’s participation obligation has been reallocated to other Lenders or cash collateral or other credit support acceptable
to the Issuing Lender shall have been provided in accordance with the terms hereof and (b) with respect to the Swing Loan
Lender, such Defaulting Lender’s Commitment Percentage of Swing Loans other than Swing Loans as to which such Defaulting
Lender’s participation obligation has been reallocated to other Lenders, repaid by the Borrower or for which cash collateral
or other credit support acceptable to the Swing Loan Lender shall have been provided in accordance with the terms hereof.

 

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Funds from Operations.
With respect to a Person and for a given period, (a) Net Income (or Loss) of such Person computed in accordance with GAAP, calculated
without regard to (i) gains (or losses) from debt restructuring and sales of property during such period, and (ii) charges for
impairment of real estate, plus (b) depreciation with respect to such Person’s real estate assets and amortization (other
than amortization of deferred financing costs) of such Person for such period, plus (c) other non-cash items (other than amortization
of deferred financing costs), plus (d) costs in connection with acquisitions, all after adjustment for unconsolidated partnerships
and joint ventures, plus (e) extraordinary and non-recurring gains and losses, plus (f) non-recurring expenses which for the avoidance
of doubt would include costs associated with the internalization of management. Adjustments for Unconsolidated Affiliates will
be calculated to reflect funds from operations on the same basis. Notwithstanding the foregoing, the impact of fair market changes
of investments will be excluded from the calculation of Funds From Operations.

 

Future Funding Commitments.
All of the Borrower, Guarantors and their Subsidiaries unfunded loan commitments and other contractual obligations paid or to be
paid in the form of cash. Notwithstanding the foregoing, unfunded loan commitments shall mean the projection of future cash fundings
related to existing unfunded loan commitments for the applicable time period, as approved by the Agent.

 

GAAP. Principles
that are (a) consistent with the principles promulgated or adopted by the Financial Accounting Standards Board and its predecessors,
as in effect from time to time and (b) consistently applied with past financial statements of the Person adopting the same
principles.

 

Governmental Authority.
Any national, state or local government (whether domestic or foreign), any political subdivision thereof or any other governmental,
quasi governmental, judicial, public or statutory instrumentality, authority, body, agency, bureau, commission, board, department
or other entity (including, without limitation, the Federal Deposit Insurance Corporation, the Comptroller of the Currency or the
Federal Reserve Board, any central bank or any comparable authority) or any arbitrator with authority to bind a party at law, and
including any supra-national bodies such as the European Union or the European Central Bank.

 

Gross Asset Value.
On a Consolidated basis for REIT and its Subsidiaries as of any date of determination, the sum of (without duplication):

 

		(a)	Real Estate Value; plus

 

		(b)	Mortgage Loan Value; plus

 

		(c)	book value determined in accordance with GAAP of Other
Loans; plus

 

		(d)	the amount of Unrestricted Cash.

 

Gross Asset Value will
be adjusted, as appropriate, for acquisitions, dispositions and other changes to the portfolio during the calendar quarter most
recently ended prior to a date of determination. Additionally, without limiting or affecting any other provision hereof, Gross
Asset Value shall not include any income or value associated with Real Estate which is not operated or intended to be operated
(or Mortgage Loan or Other Loan that is not secured by real estate which is operated or intended to be operated) principally as
a Self-Storage Property. All income, expense and value associated with assets included in Gross Asset Value disposed of during
the calendar quarter period most recently ended prior to a date of determination will be eliminated from calculations. Gross Asset
Value will be adjusted to include an amount equal to REIT’s or any of its Subsidiaries’ pro rata share (based upon
the greater of such Person’s Equity Percentage in such Unconsolidated Affiliate or such Subsidiary that is not a Wholly-Owned
Subsidiary or such Person’s pro rata liability for the Indebtedness of such Unconsolidated Affiliate or such Subsidiary that
is not a Wholly-Owned Subsidiary) of the Gross Asset Value attributable to any of the items listed above in this definition owned
by such Unconsolidated Affiliate or such Subsidiary that is not a Wholly-Owned Subsidiary.

 

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Ground Lease.
Any ground lease reasonably approved by the Agent pursuant to which a Subsidiary Guarantor leases a Borrowing Base Property.

 

Ground Lease Default.
See §6.34(d).

 

Guaranteed Pension
Plan. Any employee pension benefit plan within the meaning of Section 3(2) of ERISA maintained or contributed to by REIT
or any ERISA Affiliate the benefits of which are guaranteed on termination in full or in part by the PBGC pursuant to Title IV
of ERISA, other than a Multiemployer Plan.

 

Guarantor. Collectively,
REIT and each Subsidiary Guarantor, and individually any one of them.

 

Guaranty. The
First Amended and Restated Unconditional Guaranty of Payment and Performance dated of even date herewith made by REIT and each
Subsidiary Guarantor in favor of the Agent and the Lenders, as the same may be modified, amended, restated or ratified, such Guaranty
to be in form and substance satisfactory to the Agent.

 

Hazardous Substances.
As defined in the Indemnity Agreement.

 

Hedge Obligations.
All obligations of Borrower to any Lender Hedge Provider to make any payments under any agreement with respect to an interest rate
swap, collar, cap or floor or a forward rate agreement or other agreement regarding the hedging of interest rate risk exposure
relating to the Obligations, and any confirming letter executed pursuant to such hedging agreement, and which shall include, without
limitation, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap”
within the meaning of Section 1a(47) of the Commodity Exchange Act, all as amended, restated or otherwise modified. Under
no circumstances shall any of the Hedge Obligations secured or guaranteed by any Loan Document as to a Guarantor include any obligation
that constitutes an Excluded Hedge Obligation of such Guarantor. Notwithstanding the foregoing, Hedge Obligations shall not be
secured by the Collateral or be a liability of the Borrower or Guarantors pursuant to the Loan Documents unless Borrower’s
rights under the agreement described in this definition have been pledged to Agent for the benefit of the Lenders pursuant to §7.20.

 

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Implied Debt Service
Coverage Amount. At any time reasonably determined by Agent, an amount equal to the annual principal and interest payment sufficient
to amortize in full over a thirty (30) year period a loan amount equal to the aggregate principal balance of all Loans and Letter
of Credit Liabilities calculated using a per annum interest rate equal to the greatest of (i) the then-current annual yield
on ten (10) year obligations issued by the United States Treasury most recently prior to the date of determination plus two hundred
fifty (250) basis points (2.50%), (ii) six percent (6.0%), and (iii) the actual blended interest rate then in effect under this
Agreement as of the last day of the most recently ended calendar quarter. For the purposes of the initial calculation of the amount
pursuant to clause (iii), the actual blended interest rate under this Agreement shall be deemed to be 5.76%. The determination
of the Implied Debt Service Coverage Amount and the components thereof by the Agent shall be based on Borrower’s Compliance
Certificate as required by §7.4(c) as reasonably approved by Agent (or if such certificate has not been submitted pursuant
to such section or otherwise, the same shall be determined by Agent in good faith, which determination shall be conclusive and
binding absent demonstrable error until such time as Borrower delivers the Compliance Certificate as required by §7.4(c)).

 

Increase Notice.
See §2.11(a).

 

Indebtedness.
With respect to a Person, at the time of computation thereof, all of the following (without duplication): (a) all indebtedness
of such Person for borrowed money including, without limitation, any repurchase obligation or liability of such Person with respect
to securities, accounts or notes receivable sold by such Person that becomes a liability on the balance sheet of such Person, (b)
all obligations of such Person for the deferred purchase price of property or services (other than current trade liability incurred
in the ordinary course of business and payable in accordance with customary practices), to the extent such obligations constitutes
indebtedness for the purposes of GAAP, (c) any other indebtedness of such Person which is evidenced by a note, bond, debenture,
or similar instrument, (d) all Capitalized Lease Obligations, (e) all indebtedness of other Persons which such Person has guaranteed
or is otherwise recourse to such Person (except for guaranties of customary exceptions for waste, fraud, misapplication of funds,
environmental indemnities, violation of “special purpose entity” covenants, unpermitted transfers and encumbrances,
and other similar exceptions to recourse liability until a written claim is made with respect thereto, and then shall be included
only to the extent of the amount of such claim), including liability of a general partner in respect of liabilities of a partnership
in which it is a general partner which would constitute “Indebtedness” hereunder, any obligation to supply funds to
or in any manner to invest directly or indirectly in a Person, to maintain working capital or equity capital of a Person or otherwise
to maintain net worth, solvency or other financial condition of a Person, to purchase indebtedness, or to assure the owner of indebtedness
against loss, including, without limitation, through an agreement to purchase property, securities, goods, supplies or services
for the purpose of enabling the debtor to make payment of the indebtedness held by such owner or otherwise (excluding in any calculation
of Consolidated Total Indebtedness of Borrower, any Guarantor and their Subsidiaries, guaranty obligations of Borrower, any Guarantor
or their Subsidiaries in respect of primary obligations of any of Borrower, any Guarantor or their Subsidiaries which are already
included in Indebtedness), (f) all reimbursement obligations of such Person for letters of credit and other contingent liabilities,
(g) any net mark-to-market exposure under a Derivatives Contract to the extent speculative in nature, (h) all liabilities
secured by any lien (other than liens for taxes not yet due and payable) on any property owned by such Person even though such
Person has not assumed or otherwise become liable for the payment thereof, and (i) such Person’s pro rata share of the Indebtedness
(based upon its Equity Percentage) of any Unconsolidated Affiliate of such Person. For the avoidance of doubt, Senior Participations
will count as Indebtedness.

 

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Indemnified Taxes.
(a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the
Borrower or any Guarantor under any Loan Document and (b) to the extent not otherwise described in the immediately preceding clause
(a), Other Taxes.

 

Indemnity Agreement.
The First Amended and Restated Indemnity Agreement Regarding Hazardous Materials made by the Borrower and Guarantors, in favor
of the Agent and the Lenders, as the same may be modified, amended or ratified, pursuant to which each of the Borrower and the
Guarantors agrees to indemnify the Agent and the Lenders with respect to Hazardous Substances and Environmental Laws.

 

Information. See
§18.7.

 

Information Materials.
See §7.4.

 

Insurance Proceeds.
All insurance proceeds, damages and claims and the right thereto under any insurance policies relating to any portion of any Collateral,
net of all reasonable and customary amounts actually expended to collect the same, including, without limitation, reasonable and
customary amounts expended in negotiating, litigating, if appropriate, or investigating the amount of such insurance, proceeds,
damages and claims.

 

Interest Expense.
With respect to any period, with respect to REIT and its Subsidiaries, without duplication, total interest expense accruing or
paid on Indebtedness of REIT and its Subsidiaries, on a consolidated basis, during such period (including capitalized interest,
interest expense attributable to Capitalized Lease Obligations and amounts attributable to interest incurred under Derivatives
Contracts) (whether direct, indirect or contingent, and including without limitation, interest on all convertible debt but excluding
amortization of financing costs), determined in accordance with GAAP, and including (without duplication) the Equity Percentage
of Interest Expense for the Unconsolidated Affiliates of REIT and its Subsidiaries. Interest Expense shall not include non-cash
interest expense or capitalized interest funded under a construction loan by an interest reserve.

 

Interest Hedge.
See §7.20.

 

Interest Payment Date.
As to each Loan, the first day of each calendar month during the term of such Loan.

 

Interest Period.
With respect to each LIBOR Rate Loan (a) initially, the period commencing on the Drawdown Date of such LIBOR Rate Loan and
ending one (1), two (2) or three (3) months thereafter, and (b) thereafter, each period commencing on the day following the
last day of the next preceding Interest Period applicable to such Loan and ending on the last day of one (1) of the periods set
forth above, as selected by the Borrower in a Loan Request or Conversion/Continuation Request; provided that all of the
foregoing provisions relating to Interest Periods are subject to the following:

 

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(i)          if
any Interest Period with respect to a LIBOR Rate Loan would otherwise end on a day that is not a LIBOR Business Day, such Interest
Period shall end on the next succeeding LIBOR Business Day, unless such next succeeding LIBOR Business Day occurs in the next calendar
month, in which case such Interest Period shall end on the next preceding LIBOR Business Day, as determined conclusively by the
Agent in accordance with the then current bank practice in London;

 

(ii)         if
the Borrower shall fail to give notice as provided in §4.1, the Borrower shall be deemed to have requested a continuation
of the affected LIBOR Rate Loan as a LIBOR Rate Loan on the last day of the then current Interest Period with respect thereto as
provided in and subject to the terms of §4.1(c);

 

(iii)        any
Interest Period pertaining to a LIBOR Rate Loan that begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business
Day of the applicable calendar month; and

 

(iv)        no
Interest Period relating to any LIBOR Rate Loan shall extend beyond the Revolving Credit Maturity Date.

 

Internalization.
Any transaction or series of related transactions (including, without limitation, mergers, consolidations, stock or other ownership
interest purchase or modifications of agreements) whereby (1) the Advisor ceases or materially reduces the level of its services
accompanied by an elimination or a commensurate reduction of the amount of the fees payable to the Advisor under the Advisory Agreement,
(2) REIT or any of its Subsidiaries employs persons previously employed by the Advisor and (3) REIT or any of its wholly owned
Subsidiaries subsequently is to perform all or substantially all of the duties previously performed by the Advisor.

 

Investments. With
respect to any Person, all shares of capital stock, evidences of Indebtedness and other securities issued by any other Person and
owned by such Person, all loans, advances, or extensions of credit to, or contributions to the capital of, any other Person, all
purchases of the securities or business or integral part of the business of any other Person and commitments and options to make
such purchases, all interests in real property, and all other investments; provided, however, that the term “Investment”
shall not include (x) equipment, inventory and other tangible personal property acquired in the ordinary course of business,
or (y) current trade and customer accounts receivable for services rendered in the ordinary course of business and payable
in accordance with customary trade terms. In determining the aggregate amount of Investments outstanding at any particular time:
(a) there shall be included as an Investment all interest accrued with respect to Indebtedness constituting an Investment
unless and until such interest is paid; (b) there shall be deducted in respect of each Investment any amount received as a
return of capital; (c) there shall not be deducted in respect of any Investment any amounts received as earnings on such Investment,
whether as dividends, interest or otherwise, except that accrued interest included as provided in the foregoing clause (a) shall
be deducted when paid; and (d) there shall not be deducted in respect of any Investment any decrease in the value thereof.

 

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Issuing Lender.
KeyBank, in its capacity as the Lender issuing the Letters of Credit and any successor thereto.

 

Joinder Agreement.
The Joinder Agreement with respect to the Guaranty, the Contribution Agreement and the Indemnity Agreement to be executed and delivered
pursuant to §5.5 by any Additional Guarantor, such Joinder Agreement to be substantially in the form of Exhibit A
hereto.

 

KBCM. KeyBanc
Capital Markets, Inc. or any successor.

 

KeyBank. As defined
in the preamble hereto.

 

Land Assets. Land
to be developed as a Self-Storage Property with respect to which the commencement of grading, construction of improvements (other
than improvements that are not material and are temporary in nature) or infrastructure has not yet commenced and for which no such
work is reasonably scheduled to commence within the following twelve (12) months.

 

Leases. Leases,
licenses and agreements, whether written or oral, relating to the use or occupation of space in any Building or of any Real Estate.

 

Lender Hedge Provider.
With respect to any Hedge Obligations, any counterparty thereto that, at the time the applicable hedge agreement was entered into,
was a Lender or an Affiliate of a Lender.

 

Lenders. KeyBank,
the other lenders which are party hereto and any other Person which becomes an assignee of any rights of a Lender pursuant to this
Agreement (but not including any participant as described in §18). The Issuing Lender shall be a Lender, as applicable. The
Swing Loan Lender shall be a Lender.

 

Letter of Credit.
Any standby letter of credit issued at the request of the Borrower and for the account of the Borrower in accordance with §2.10.

 

Letter of Credit Commitment.
An amount equal to Twenty-Three Million Five Hundred Thousand and No/100 Dollars ($23,500,000.00), as the same may be changed from
time to time in accordance with the terms of this Agreement.

 

Letter of Credit Liabilities.
At any time and in respect of any Letter of Credit, the sum of (a) the maximum undrawn face amount of such Letter of Credit
plus (b) the aggregate unpaid principal amount of all drawings made under such Letter of Credit which have not been repaid
(including repayment by a Revolving Credit Loan). For purposes of this Agreement, a Lender (other than the Lender acting as the
Issuing Lender) shall be deemed to hold a Letter of Credit Liability in an amount equal to its participation interest in the related
Letter of Credit under §2.10, and the Lender acting as the Issuing Lender shall be deemed to hold a Letter of Credit Liability
in an amount equal to its retained interest in the related Letter of Credit after giving effect to the acquisition by the Lenders
other than the Lender acting as the Issuing Lender of their participation interests under §2.10.

 

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Letter of Credit Request.
See §2.10(a).

 

LIBOR. For any
LIBOR Rate Loan for any Interest Period, the average rate as shown in Reuters Screen LIBOR 01 Page (or any successor service, or
if such Person no longer reports such rate as determined by the Agent, by another commercially available source providing such
quotations approved by the Agent) at which deposits in U.S. dollars are offered by first class banks in the London Interbank Market
at approximately 11:00 a.m. (London time) on the day that is two (2) LIBOR Business Days prior to the first day of such Interest
Period with a maturity approximately equal to such Interest Period and in an amount approximately equal to the amount to which
such Interest Period relates, adjusted for reserves and taxes if required by future regulations. If such service or such other
Person approved by the Agent described above no longer reports such rate or the Agent determines in good faith that the rate so
reported no longer accurately reflects the rate available to the Agent in the London Interbank Market, Loans shall accrue interest
at the Base Rate plus the Applicable Margin for such Loan. For any period during which a Reserve Percentage shall apply, LIBOR
with respect to LIBOR Rate Loans shall be equal to the amount determined above divided by an amount equal to 1 minus the Reserve
Percentage. Notwithstanding the foregoing, if the rate shown on Reuters Screen LIBOR01 Page (or any successor service designated
pursuant to this definition) shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.

 

LIBOR Business Day.
Any day on which commercial banks are open for international business (including dealings in Dollar deposits) in London, England.

 

LIBOR Lending Office.
Initially, the office of each Lender designated as such on Schedule 1.1 hereto; thereafter, such other office of such
Lender, if any, that shall be making or maintaining LIBOR Rate Loans.

 

LIBOR Rate Loans.
Those Loans bearing interest calculated by reference to LIBOR.

 

LIBOR Termination
Date. See §4.15.

 

Lien. See §8.2.

 

Liquidity. As
of any date of determination, the sum of (i) Unrestricted Cash of the REIT and its Subsidiaries and (ii) the amount of Revolving
Credit Loans which may be borrowed under this Agreement by Borrower.

 

LLC
Division. In the event Borrower or any Guarantor is a limited liability company, (i) the division of Borrower or any
such Guarantor into two or more newly formed limited liability companies (whether or not Borrower or any such Guarantor is a surviving
entity following any such division) pursuant to, in the event Borrower or any such Guarantor is organized under the laws of the
State of Delaware, Section 18-217 of the Delaware Limited Liability Company Act or, in the event Borrower or any such Guarantor
is organized under the laws of a State or Commonwealth of the United States (other than Delaware) or of the District of Columbia,
any similar provision under any similar act governing limited liability companies organized under the laws of such State or Commonwealth
or of the District of Columbia, or (ii) the adoption of a plan contemplating, or the filing of any certificate with any applicable
Governmental Authority that results or may result in, any such division.

 

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Loan Documents.
This Agreement, the Notes, the Guaranty, the Joinder Agreements, each Letter of Credit Request, the Security Documents, the Subordination
of Management Agreement and all other documents, instruments or agreements now or hereafter executed or delivered by or on behalf
of the Borrower or any Guarantor in connection with the Loans.

 

Loan Request.
See §2.7(a).

 

Loan and Loans.
An individual loan or the aggregate loans (including a Revolving Credit Loan and a Swing Loan (or Loans)), as the case may be,
in the maximum aggregate principal amount of the Total Commitment. All Loans shall be made in Dollars. Amounts drawn under a Letter
of Credit shall also be considered Revolving Credit Loans as provided in §2.10.

 

Management Agreements.
Agreements to which any Person that owns a Borrowing Base Property is a party, whether written or oral, providing for the management
of the Borrowing Base Property or any of them.

 

Manager. Any management
company that manages and operates a Borrowing Base Property pursuant to the Management Agreement for such Borrowing Base Property.

 

Material Adverse Effect.
A material adverse effect on (a) the business, properties, assets, condition (financial or otherwise), prospects or results
of operations of REIT and its Subsidiaries, taken as a whole; (b) the ability of the Borrower or any Guarantor to perform
any of its material obligations under the Loan Documents; or (c) the validity or enforceability of any of the Loan Documents
or the creation, perfection and priority of any Liens of the Agent in the Collateral; or (d) the rights or remedies of the
Agent or the Lenders under any of the Loan Documents.

 

Mezzanine Loan.
Each of the loans which is owned by and has been made by Borrower to the owner of the Equity Interests in a Collateral Borrower,
and which is secured by a first priority pledge of the Equity Interests in such Collateral Borrower.

 

Mezzanine Loan Documents.
Originals of all documents, instruments, agreements, assignments and certificates, including without limitation, any and all loan
or credit agreements, notes, allonges or endorsements, security agreements, pledge agreements, assignments of contracts, environmental
indemnities, guaranties, certificates evidencing ownership of equity interests, powers, title insurance policies, opinions of counsel,
evidences of authorization or incumbency, escrow instructions and UCC-1 financing statements, that are or may be executed by (and
acknowledged where applicable) and recorded and filed against a borrower or guarantor in connection with a Mezzanine Loan, as the
same may be amended or otherwise modified from time to time in accordance with this Agreement. Mezzanine Loan Documents shall also
include all agreements and other instruments that may be delivered to Borrower by the borrower or guarantor under such Mezzanine
Loan pursuant to the Mezzanine Loan Documents.

 

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Moody’s.
Moody’s Investor Service, Inc. and any successor thereto.

 

Mortgage Loan.
A loan or note, held by the Borrower or a Subsidiary of the Borrower, secured by or serves as a first mortgage on a Self-Storage
Property including land properly zoned for the construction of a Self-Storage Property. For the avoidance of doubt, this includes
the loans categorized as “Development Property Investments”, “Bridge Loan Investments”, “Construction
Loan Investments”, and “Operating Property Loans” in the REIT’s form 10-Q dated September 30, 2018.

 

Mortgage Loan Collateral
Value. As of any date of determination, the aggregate Mortgage Loan Value for all Mortgage Loans included in the Borrowing
Base Assets.

 

Mortgage Loan Value.
As of any date of determination, for each Mortgage Loan the lesser of (i) face value of the note relating to the applicable Mortgage
Loan, or (ii) the outstanding balance of such note for each Mortgage Loan.

 

Mortgages. The
Mortgages, Deeds to Secure Debt and/or Deeds of Trust from a Subsidiary Guarantor to the Agent for the benefit of the Lenders (or
to trustees named therein acting on behalf of the Agent for the benefit of the Lenders), as the same may be modified or amended,
pursuant to which a Subsidiary Guarantor has conveyed or granted a mortgage lien upon or a conveyance in fee simple of a Borrowing
Base Property as security for the Obligations, each such instrument to be substantially in the form of Exhibit J attached
hereto, with such changes thereto as Agent may reasonably require as a result of state law or practice.

 

Multiemployer Plan.
Any multiemployer plan within the meaning of Section 3(37) of ERISA maintained or contributed to by REIT or any ERISA Affiliate.

 

Net Income (or Loss).
With respect to any Person (or any asset of any Person) with respect to any period, the net income (or loss) of such Person (or
attributable to such asset), determined in accordance with GAAP.

 

Net Offering Proceeds.
The sum of (a) the gross cash proceeds received by REIT or any of its Subsidiaries as a result of an Equity Offering or as a result
of any contribution of capital less the customary and reasonable costs, expenses and discounts paid by REIT or such Subsidiary
in connection therewith (including underwriting discounts and commissions), and (b) the value of assets received by Borrower
in exchange for the issuance of equity interests in Borrower.

 

Net Rentable Area.
With respect to any Real Estate, the floor area of any buildings, structures or other improvements available for leasing to tenants
determined in accordance with the most recent Rent Roll received by the Agent for such Real Estate, the manner of such determination
to be reasonably consistent for all Real Estate of the same type unless otherwise reasonably approved by the Agent. With respect
to any real estate securing a Borrowing Base Loan, the Net Rentable Area of such real estate shall be calculated in a manner consistent
with the method for Borrowing Base Properties.

 

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Non-Consenting Lender.
See §18.8.

 

Non-Defaulting Lender.
At any time, any Lender that is not a Defaulting Lender at such time.

 

Non-Recourse Exclusions.
With respect to any Non-Recourse Indebtedness of any Person, any usual and customary exclusions from the non-recourse limitations
governing such Indebtedness, including, without limitation, exclusions for claims that (a) are based on waste, misappropriation
of funds, unpermitted transfers or encumbrances, violations of “special purpose entity” covenants, fraud, intentional
misrepresentation, intentional misapplication of funds, gross negligence or willful misconduct, (b) result from intentional
mismanagement of the Real Estate securing such Non-Recourse Indebtedness, (c) arise from the presence of a breach of Environmental
Laws regarding the discharge of Hazardous Substances on the Real Estate securing such Non-Recourse Indebtedness, (d) are the
result of any unpaid real estate taxes and assessments (whether contained in a loan agreement, promissory note, indemnity agreement
or other document), (e) result from the borrowing Subsidiary and/or its assets becoming the subject of a voluntary or involuntary
bankruptcy, insolvency or similar proceeding, or (f) any other customary “recourse carve-outs” required by institutional
commercial real estate lenders in the market.

 

Non-Recourse Indebtedness.
With respect to a Person, (a) Indebtedness for borrowed money in respect of which recourse for payment (except for Non-Recourse
Exclusions until a claim is made with respect thereto, and then such Indebtedness shall not constitute Non-Recourse Indebtedness
only to the extent of the amount of such claim) is contractually limited to specific assets of such Person encumbered by a Lien
securing such Indebtedness or (b) if such Person is a Single Asset Entity, any Indebtedness of such Person.

 

Non-Stabilized Real
Estate Collateral. The Borrowing Base Properties included in the determination of Tranche B Availability.

 

Notes. Collectively,
the Revolving Credit Notes and the Swing Loan Note.

 

Notice. See §19.

 

Obligations. All
indebtedness, obligations and liabilities of the Borrower or any Guarantor to any of the Lenders or the Agent, individually or
collectively, under this Agreement or any of the other Loan Documents or in respect of any of the Loans, the Notes or the Letters
of Credit, or other instruments at any time evidencing any of the foregoing, whether existing on the date of this Agreement or
arising or incurred hereafter, direct or indirect, joint or several, absolute or contingent, matured or unmatured, liquidated or
unliquidated, secured or unsecured, arising by contract, operation of law or otherwise (including interest and other amounts accruing
during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable
in such proceeding).

 

Occupancy Rate.
On any date of determination, for any Borrowing Base Property, the quotient of (a) the aggregate net rentable square footage of
individual storage units for such Borrowing Base Property subject to Leases as to which (i) tenants or occupants are not in default
of any of their payment or other material obligations under their respective Lease or other occupancy agreement, (ii) are an arm’s
length Lease or occupancy agreement entered into in the ordinary course of business with a party that is not an Affiliate of the
REIT, the Borrower or the Advisor, and (iii) the tenant is not subject to any bankruptcy, reorganization, arrangement, insolvency,
readjustment of debt, dissolution, liquidation or similar debtor relief proceeding, divided by (b) aggregate net rentable
square footage of storage units on such Borrowing Base Property.

 

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OFAC. Office of
Foreign Asset Control of the Department of the Treasury of the United States of America.

 

Operating and Interest
Holdback. The aggregate operating and interest holdbacks for Borrowing Base Properties as calculated by the Borrower, as demonstrated
by the Borrower’s Borrowing Base Property budget, and approved by Agent. The amount of such holdbacks can be updated by Borrower
on a monthly basis as leasing at the Borrowing Base Property progresses, which frequency is at the discretion of the Borrower,
but shall be updated on a quarterly basis, and which amounts shall be approved by the Agent.

 

Other Connection Taxes.
With respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction
imposing such Tax (other than connections arising solely from such Recipient 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 Loan. Loans
to individuals or limited liability companies generally used to fund expenses for pursuit costs to contract for and perform due
diligence on additional sites to be developed as Self-Storage Properties, otherwise referred to as “Other Loans” in
the REIT’s Form 10-Q dated September 30, 2018.

 

Other Taxes. 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 (other than an assignment made pursuant to §4.14 as a result of costs sought to be reimbursed
pursuant to §4.3).

 

Outstanding. With
respect to the Loans, the aggregate unpaid principal thereof as of any date of determination. With respect to Letters of Credit,
the aggregate undrawn face amount of issued Letters of Credit.

 

Participant Register.
See §18.4.

 

Patriot Act. The
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, as the
same may be amended from time to time, and corresponding provisions of future laws.

 

PBGC. The Pension
Benefit Guaranty Corporation created by Section 4002 of ERISA and any successor entity or entities having similar responsibilities.

 

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Permits. With
respect to any Person, any permit, approval, authorization, license, registration, certificate, concession, grant, franchise, variance
or permission from, and any other contractual obligations with, any Governmental Authority, in each case whether or not having
the force of law and applicable to or binding upon such Person or any of its property or to which such Person or any of its property
is subject.

 

Permitted Liens.
Liens, security interests and other encumbrances permitted by §8.2.

 

Person. Any individual,
corporation, limited liability company, partnership, trust, unincorporated association, business, or other legal entity, and any
government or any governmental agency or political subdivision thereof.

 

Plan Assets. Assets
of any Employee Benefit Plan within the meaning of Department of Labor regulation 29 C.F.R. 2510.3-101, Title I or ERISA as modified
by Section 3(42) of ERISA.

 

Potential Borrowing
Base Asset. Any (a) (i) Eligible Real Estate, or (ii) Real Estate which is capable of becoming Eligible Real Estate
through the approval of the Required Lenders, and the completion and delivery of Borrowing Base Qualification Documents as required
by the Agent, or (b) Mortgage Loan.

 

Preferred Distributions.
With respect to any period and without duplication, all Distributions paid, declared but not yet paid or otherwise due and payable
during such period on Preferred Securities issued by REIT or any of its Subsidiaries. Preferred Distributions shall not include
dividends or distributions: (a) paid or payable solely in Equity Interests to holders of such class of Equity Interests; (b) paid
or payable to the Borrower or any of its Subsidiaries; or (c) constituting or resulting in the redemption of Preferred Securities,
other than scheduled redemptions not constituting balloon, bullet or similar redemptions in full.

 

Preferred Securities.
With respect to any Person, Equity Interests in such Person which are entitled to preference or priority over any other Equity
Interest in such Person in respect of the payment of dividends or distribution of assets upon liquidation, or both.

 

Prepayment. Any
voluntary or involuntary payment or prepayment of principal of a Borrowing Base Loan or any other event (including, without limitation,
a casualty to or condemnation of a property subject to a Borrowing Base Loan) resulting in a prepayment of a Borrowing Base Loan,
or any other recovery or monetary return by or for Borrower or a Subsidiary Guarantor, whether directly or otherwise, with respect
to a Borrowing Base Loan.

 

Profits Participation.
An Equity Interest held by Borrower, directly or indirectly, in a Collateral Borrower, which Equity Interest is a non-voting interest
and is limited to a not more than 49.9% interest in the profits (but not losses), residual cash flows and residual capital proceeds
of the Collateral Borrower or, if there is a Mezzanine Loan, the Person holding 100% of the Equity Interests in the Collateral
Borrower.

 

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Project Approvals.
See §6.22.

 

Property Development
Cost. The actual hard and soft costs (including land acquisition costs) incurred prior to acceptance of Real Estate as a Borrowing
Base Property to develop such Borrowing Base Property.

 

Property NOI.
With respect to any Real Estate or real estate securing a Mortgage Loan for any period, property rental and other income (excluding
rents from any tenants that are over sixty (60) days past due, and after adjusting for straight-lining of rents) attributable to
such Real Estate or real estate securing a Mortgage Loan accruing for such period minus the amount of all expenses incurred in
connection with and directly attributable to the ownership and operation of such Real Estate or real estate securing a Mortgage
Loan for such period, including, without limitation, property management fees and amounts accrued for the payment of real estate
taxes and insurance premiums, but excluding interest expense or other debt service charges and any non-cash charges such as depreciation
or amortization of financing costs and acquisition costs for consummated acquisitions. As used herein “property management
fees” means, with respect to each item of Real Estate or real estate securing a Mortgage Loan for any period, an assumed
amount equal to the greater of (i) five percent (5%) of the rent due and payable under leases with tenants at such Real Estate
or real estate securing a Mortgage Loan and (ii) actual management fees, excluding amounts that will be reclassified as Regional,
Executive Management, or General & Administrative expenses.

 

Public Lender.
See §7.4.

 

Real Estate. All
real property, including, without limitation, the Borrowing Base Properties, at the time of determination then owned or leased
(as lessee or sublessee) in whole or in part or operated by REIT or any of its Subsidiaries, or an Unconsolidated Affiliate of
the Borrower and which is located in the United States of America or the District of Columbia.

 

Real Estate Asset
Fair Value. For the first eighteen (18) months after a Mortgage Loan is added to the Borrowing Base Assets, Real Estate Asset
Fair Value shall be the fair value of the underlying real estate securing such Mortgage Loan as concluded in the REIT’s quarterly
GAAP fair value process. Thereafter, for any Mortgage Loan whose underlying real estate has an Occupancy Rate less than fifty percent
(50%), Agent shall have the right to, or at the request of the Required Lenders shall, engage an Appraisal to determine the As-Is
Appraised Value and to determine Real Estate Asset Fair Value, and thereafter, the Real Estate Fair Value shall be the As-Is Appraised
Value of such real estate as most recently determined under this Agreement, or if no such request is made, the Real Estate Asset
Fair Value shall be determined as provided in the first sentence of this definition.

 

Real Estate As-Is
Value. With respect to any Real Estate that is a Borrowing Base Property included in the calculation of Tranche C Availability,
the current As-Is Appraised Value for such Real Estate.

 

Real Estate As-Stabilized
Value. With respect to any Real Estate that is a Borrowing Base Property included in the calculation of Tranche B Availability,
the current As-Stabilized Appraised Value for such Real Estate.

 

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Real Estate Collateral
Value. As of any date of determination, the sum of the Real Estate As-Stabilized Value of the Non-Stabilized Real Estate Collateral
and the Real Estate As-Is Value of the Stabilized Real Estate Collateral.

 

Real Estate Value.
As of any date of determination, the sum of (i) the Real Estate Collateral Value for Real Estate that are Borrowing Base Properties,
and (ii) the Capitalized Value for all Real Estate that are operating Self-Storage Properties that are not Borrowing Base Assets.
Notwithstanding the foregoing clause (ii), Real Estate Assets owned for less than eighteen (18) months may be included in Real
Estate Value at the greater of (i) acquisition cost determined in accordance with GAAP and (ii) Capitalized Value.

 

Recipient. The
Agent and any Lender.

 

Record. The grid
attached to any Note, or the continuation of such grid, or any other similar record, including computer records, maintained by
the Agent with respect to any Loan referred to in such Note.

 

Recourse Indebtedness.
As of any date of determination, any Indebtedness (whether secured or unsecured) which is recourse to REIT or any of its Subsidiaries.
Recourse Indebtedness shall not include Non-Recourse Indebtedness, but shall include any Non-Recourse Exclusions at such time a
written claim is made with respect thereto, but only to the extent of such claim.

 

Register. See
§18.2.

 

REIT. Jernigan
Capital, Inc., a Maryland corporation.

 

REIT Status. With
respect to a Person, its status as a real estate investment trust as defined in Section 856(a) of the Code.

 

Related Fund.
With respect to any Lender which is a fund that invests in loans, any Affiliate of such Lender or any other fund that invests in
loans that is managed by the same investment advisor as such Lender or by an Affiliate of such Lender or such investment advisor.

 

Release. Any releasing,
spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, disposing or dumping (other than the
storing or use of materials in reasonable quantities to the extent necessary for the operation of property in the ordinary course
of business, and in any event in compliance with all Environmental Laws) of Hazardous Substances.

 

Rent Roll. A report
prepared by the Borrower, or by a Manager at the direction of the Borrower, showing for all Real Estate, including, without limitation,
each Borrowing Base Asset, owned or leased by the Borrower or its Subsidiaries, its occupancy, lease expiration dates, lease rent
and other information, including, without limitation, identification of vacant units, in substantially the form presented to the
Agent prior to the date hereof or in such other form as may be reasonably acceptable to the Agent.

 

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Representative.
See §14.16.

 

Required Lenders.
As of any date, Lenders having at least 66 2/3% of the aggregate amount of the Commitments, or, if the Commitments have been terminated
or reduced to zero, Lenders holding at least 66 2/3% of the principal amount Outstanding of the Loan(s) and participations in Swing
Loans and Letters of Credit, provided that (a) in determining such percentage at any given time, all then existing Defaulting Lenders
will be disregarded and excluded and the Commitment Percentages of the Lenders shall be re-determined, for voting purposes only,
to exclude the Commitment Percentage of such Defaulting Lenders, and (b) at all times when two (2) or more Lenders are party to
this Agreement, the term “Required Lenders” shall in no event mean less than two (2) Non-Defaulting Lenders.

 

Requirements.
See §6.22.

 

Reserve Percentage.
For any Interest Period, that percentage which is specified three (3) Business Days before the first day of such Interest Period
by the Board of Governors of the Federal Reserve System (or any successor) or any other Governmental Authority with jurisdiction
over the Agent or any Lender for determining the maximum reserve requirement (including, but not limited to, any marginal reserve
requirement) for the Agent or any Lender with respect to liabilities constituting of or including (among other liabilities) Eurocurrency
liabilities in an amount equal to that portion of the Loan affected by such Interest Period and with a maturity equal to such Interest
Period.

 

Responsible Officer.
Any of the president, the chief executive officer, the chief operating officer, the chief investment officer, the chief financial
officer, the treasurer, or any vice president of the applicable Person.

 

Revolving Credit Loan
or Loans. An individual Revolving Credit Loan or the aggregate Revolving Credit Loans, as the case may be, in the maximum principal
amount of the Total Commitment to be made by the Lenders hereunder as more particularly described in §2. Without limiting
the foregoing, Revolving Credit Loans shall also include Revolving Credit Loans made pursuant to §2.10(f).

 

Revolving Credit Maturity
Date. December 28, 2021, as the same may be extended as provided in §2.12, or such earlier date on which the Revolving
Credit Loans shall become due and payable pursuant to the terms hereof.

 

Revolving Credit Notes.
See §2.1(b).

 

S&P. S&P
Global Inc. or any successor thereto.

 

Sanctions Laws and
Regulations. Any applicable sanctions, prohibitions or requirements imposed by any applicable executive order or by any applicable
sanctions program administered by OFAC, the United States Department of State, the United States Treasury, the United Nations Security
Council, the European Union or Her Majesty’s Treasury.

 

SEC. The federal
Securities and Exchange Commission.

 

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Secured Indebtedness.
With respect to REIT and its Subsidiaries as of any given date, the aggregate principal amount of all Indebtedness of such Persons
on a Consolidated basis outstanding at such date and that is secured in any manner by any Lien.

 

Security Documents.
Collectively, the Joinder Agreements, the Assignments of Documents, the Mortgages, the Assignments of Leases and Rents, the Assignment
of Hedge, the Indemnity Agreement, the Subordination of Management Agreement, any other security documents executed and delivered
pursuant to §5.3, the UCC-1 financing statements and any further collateral assignments to the Agent for the benefit of the
Lenders.

 

Self-Storage Property.
Real Estate which is used by the lessees thereof to self-store property of such lessees, provided leasing to other types of users
to be consistent with zoning and land use requirements, so long as the principal use of the Real Estate is self-storage, shall
not disqualify such Real Estate as a “Self-Storage Property” hereunder.

 

Senior Participations.
Senior participations in loans sold to financial institutions which are guaranteed by the REIT or one of its Wholly-Owned Subsidiaries.
The financial institution would participate with the REIT or one of its Wholly-Owned Subsidiaries in the funding of the loan.

 

Series A Preferred
Stock Private Placement. That certain Stock Purchase Agreement dated as of July 27, 2016 by and between the REIT and the Buyers
defined therein (comprised of certain funds managed by Highland Capital Management, L.P. or its controlled Affiliates) pursuant
to which the REIT is entitled to issue up to $125,000,000 of its Series A Preferred Stock, subject to certain conditions set forth
therein.

 

Single Asset Entity.
A bankruptcy remote, single purpose entity which is a Subsidiary of the Borrower and which is not a Subsidiary Guarantor or an
owner of a direct or indirect interest in a Subsidiary Guaranty which owns real property and related assets which are security
for Indebtedness of such entity, and which Indebtedness does not constitute Indebtedness of any other Person except as provided
in the definition of Non-Recourse Indebtedness (except for Non-Recourse Exclusions).

 

Stabilized Adjusted
Net Operating Income. For any Non-Stabilized Real Estate Collateral, the lesser of (a) the year 3 net operating income or (b)
stabilized net operating income, as shown in the Appraisal for such Real Estate as of the first date of inclusion in the calculation
of Borrowing Base Availability.

 

Stabilized Real Estate
Collateral. The Borrowing Base Properties included in the determination of Tranche C Availability.

 

State. A state
of the United States of America and the District of Columbia.

 

Subordination and
Standstill Agreement. Collectively, each Subordination and Standstill Agreement between Borrower and Agent relating to a Mezzanine
Loan, such agreements delivered after the date of this Agreement to be substantially in the form delivered on the date of the Existing
Credit Agreement, with such changes as Agent may reasonably require as a result of factors relating to such Mezzanine Loan.

 

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Subordination of Management
Agreement. An agreement pursuant to which a manager of a Borrowing Base Asset subordinates its rights under a Management Agreement
to the Loan Documents, such agreement to be in the form and substance satisfactory to Agent.

 

Subsidiary. For
any Person, any corporation, partnership, limited liability company or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership, limited liability company or other entity (without
regard to the occurrence of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or
more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person, and shall include all Persons the
accounts of which are consolidated with those of such Person pursuant to GAAP. Notwithstanding any ownership interest in the Borrower,
the Borrower shall at all times be considered a Subsidiary of REIT. Notwithstanding the foregoing, the mere ownership by Borrower
of a Profits Participation without more shall not make a Collateral Borrower, or if there is a Mezzanine Loan, the Person owning
an interest in such Collateral Borrower in whom such Profits Participation is owned, a Subsidiary of Borrower.

 

Subsidiary Guarantor.
Each Person, other than REIT, that is a party to the Guaranty, and each Additional Guarantor.

 

Survey. An instrument
survey of each parcel of Real Estate prepared by a registered land surveyor, certified to Agent (if required by Agent), which shall
show the location of all buildings, structures, easements and utility lines on such property, shall be sufficient to remove the
standard survey exception from the relevant Title Policy, shall show that all buildings and structures are within the lot lines
of such Real Estate and shall not show any encroachments by others (or to the extent any encroachments are shown, such encroachments
shall be acceptable to the Agent in its reasonable discretion), shall show rights of way, adjoining sites, establish building lines,
street lines and such other details as the Agent may reasonably require; and shall show whether or not such Real Estate is located
in a flood hazard district as established by the Federal Emergency Management Agency or any successor agency or is located in any
flood plain, flood hazard or wetland protection district established under federal, state or local law and shall otherwise be in
form and substance reasonably satisfactory to the Agent.

 

Swing Loan. See
§2.5(a).

 

Swing Loan Commitment.
An amount equal to Twenty-Three Million Five Hundred Thousand and No/100 Dollars ($23,500,000.00), as the same may be changed from
time to time in accordance with the terms of this Agreement.

 

Swing Loan Lender.
KeyBank, in its capacity as Swing Loan Lender and any successor thereof.

 

Swing Loan Note.
See §2.5(b).

 

Taking. The taking
or appropriation (including by deed in lieu of condemnation) of any Borrowing Base Asset, or any part thereof or interest therein,
whether permanently or temporarily, for public or quasi-public use under the power of eminent domain, by reason of any public improvement
or condemnation proceeding, or in any other manner or any damage or injury or diminution in value through condemnation, inverse
condemnation or other exercise of the power of eminent domain.

 

    34

     

    

 

Taxes. 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.

 

Title Insurance Company.
Any title insurance company or companies approved by the Agent and the Borrower.

 

Title Policy.
With respect to each of the Borrowing Base Properties, an ALTA standard form title insurance policy (or, if such form is not available,
an equivalent, legally promulgated form of mortgagee title insurance policy reasonably acceptable to the Agent) issued by a Title
Insurance Company (with such reinsurance as the Agent may reasonably require, any such reinsurance to be with direct access endorsements
to the extent available under Applicable Law) in an amount as the Agent may reasonably require based upon the fair market value
of the applicable Borrowing Base Property insuring the priority of the Mortgage thereon and that the Subsidiary Guarantor holds
marketable or indefeasible (with respect to Texas) fee simple title to such parcel, subject only to the encumbrances acceptable
to Agent in its reasonable discretion and which shall not contain standard exceptions for mechanics liens, persons in occupancy
(other than tenants as tenants only under Leases) or matters which would be shown by a survey, shall not insure over any matter
except to the extent that any such affirmative insurance is acceptable to the Agent in its reasonable discretion, and shall contain
(a) a revolving credit endorsement and (b) such other endorsements and affirmative insurance as the Agent may reasonably require
and is available in the State in which the Borrowing Base Property is located, including but not limited to (i) a comprehensive
endorsement, (ii) a variable rate of interest endorsement, (iii) a usury endorsement if available at a reasonable cost, (iv) a
doing business endorsement, (v) if required by Agent to the extent Borrower has not otherwise delivered satisfactory evidence of
compliance with zoning of the applicable Borrowing Base Property, an ALTA form 3.1 zoning endorsement, (vi) a “tie-in”
endorsement relating to all Title Policies issued by such Title Insurance Company in respect of other Borrowing Base Properties,
(vii) “first loss” and “last dollar” endorsements, and (viii) a utility location endorsement.

 

Titled Agents.
The Arrangers or any syndication or documentation agent.

 

Total Commitment.
The sum of the Commitments of the Lenders, as in effect from time to time. As of the date of this Agreement, the Total Commitment
is Two Hundred Thirty-Five Million and No/100 Dollars ($235,000,000.00), and is subject to increase as provided in §2.11.

 

Tranche A Availability.
The Borrowing Base Availability attributable to Borrowing Base Loans.

 

Tranche A Loans.
Loans made and Letters of Credit issued pursuant to this Agreement, the Borrowing Base Availability for which is provided by Tranche
A Availability.

 

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Tranche B Availability.
The Borrowing Base Availability attributable to Borrowing Base Properties that is Non-Stabilized Real Estate Collateral.

 

Tranche B Loans.
Loans made and Letters of Credit issued pursuant to this Agreement, the Borrowing Base Availability for which is provided by Tranche
B Availability.

 

Tranche C Availability.
The Borrowing Base Availability attributable to Borrowing Base Properties that are Stabilized Real Estate Collateral.

 

Tranche C Loans.
Loans made and Letters of Credit issued pursuant to this Agreement, the Borrowing Base Availability for which is provided by Tranche
C Availability.

 

Type. As to any
Loan, its nature as a Base Rate Loan or a LIBOR Rate Loan.

 

Unconsolidated Affiliate.
In respect of any Person, any other Person in whom such Person holds an Investment, which Investment is accounted for in the financial
statements of such Person on an equity basis of accounting and whose financial results would not be consolidated under GAAP with
the financial results of such first Person on the consolidated financial statements of such first Person if such financial statements
were prepared in accordance with the full consolidation method of GAAP as of such date. Notwithstanding the foregoing, the mere
ownership by Borrower of a Profits Participation without more shall not make a Collateral Borrower, or if there is a Mezzanine
Loan, the Person owning an interest in such Collateral Borrower in whom such Profits Participation is owned, an Unconsolidated
Affiliate of Borrower.

 

Unhedged Variable
Rate Debt. Any Indebtedness with respect to which the interest is not fixed (or hedged to a fixed rate) for the entire term
of such Indebtedness to maturity.

 

Unrestricted Cash.
As of any date of determination, the aggregate amount of Unrestricted cash. As used in this definition, “Unrestricted”
means the specified asset is readily available for the satisfaction of any and all obligations of such Person and is not subject
to any Lien, claim, cash trap, restriction, escrow or reserve. For the avoidance of doubt, Unrestricted Cash shall not include
any tenant security deposits or other restricted deposits.

 

Unused Fee Percentage.
With respect to any day during a calendar quarter, (a) 0.25% per annum, if the sum of the Revolving Credit Loans and Letter of
Credit Liabilities outstanding on such day is more than 50% of the Total Commitment, or (b) 0.30% per annum if the sum of the Revolving
Credit Loans and Letter of Credit Liabilities outstanding on such day is less than or equal to 50% of the Total Commitment.

 

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

 

U.S. Tax Compliance
Certificate. See §4.3(g)(ii)(B)(iii).

 

Wholly-Owned Subsidiary.
As to the Borrower or REIT, any Subsidiary of the Borrower or REIT that is directly or indirectly owned one hundred percent (100%)
by the Borrower or REIT, as applicable.

 

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Withholding Agent.
The REIT, the Borrower, any other Guarantor and the Agent, as applicable.

 

Write-Down and Conversion
Powers. With respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority
from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are
described in the EU Bail-In Legislation Schedule.

 

		§1.2	Rules
of Interpretation.

 

(a)          A
reference to any document or agreement shall include such document or agreement as amended, modified or supplemented from time
to time in accordance with its terms and the terms of this Agreement.

 

(b)          The
singular includes the plural and the plural includes the singular.

 

(c)          A
reference to any law includes any amendment or modification of such law.

 

(d)          A
reference to any Person includes its permitted successors and permitted assigns, and in the event Borrower or a Guarantor is a
limited liability company and shall undertake an LLC Division (any such LLC Division being a violation of this Agreement), shall
be deemed to include each limited liability company resulting from any such LLC Division.

 

(e)          Accounting
terms not otherwise defined herein have the meanings assigned to them by GAAP applied on a consistent basis by the accounting entity
to which they refer.

 

(f)          The
words “include”, “includes” and “including” are not limiting.

 

(g)          The
words “approval” and “approved”, as the context requires, means an approval in writing given to the party
seeking approval after full and fair disclosure to the party giving approval of all material facts necessary in order to determine
whether approval should be granted.

 

(h)          All
terms not specifically defined herein or by GAAP, which terms are defined in the Uniform Commercial Code as in effect in the State
of New York, have the meanings assigned to them therein.

 

(i)          Reference
to a particular “§”, refers to that section of this Agreement unless otherwise indicated.

 

(j)          The
words “herein”, “hereof”, “hereunder” and words of like import shall refer to this Agreement
as a whole and not to any particular section or subdivision of this Agreement.

 

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(k)          In
the event of any change in GAAP after the date hereof or any other change in accounting procedures pursuant to §7.3 which
would affect the computation of any financial covenant, ratio or other requirement set forth in any Loan Document, then upon the
request of the Borrower or the Agent, the Borrower, the Guarantors, the Agent and the Lenders shall negotiate promptly, diligently
and in good faith in order to amend the provisions of the Loan Documents such that such financial covenant, ratio or other requirement
shall continue to provide substantially the same financial tests or restrictions of the Borrower and the Guarantors as in effect
prior to such accounting change, as determined by the Required Lenders in their good faith judgment. Until such time as such amendment
shall have been executed and delivered by the Borrower, the Guarantors, the Agent and the Required Lenders, such financial covenants,
ratio and other requirements, and all financial statements and other documents required to be delivered under the Loan Documents,
shall be calculated and reported as if such change had not occurred.

 

(l)          Notwithstanding
any other provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations
of amounts and ratios referred to herein shall be made (i) without giving effect to any election under Accounting Standards
Codification 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result
or effect) to value any Indebtedness or other liabilities of the REIT or any of its Subsidiaries at “fair value”, as
defined therein, (ii) without giving effect to any treatment of Indebtedness in respect of convertible debt instruments under
Accounting Standards Codification 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having
a similar result or effect) to value any such Indebtedness in a reduced or bifurcated manner as described therein, and such Indebtedness
shall at all times be valued at the full stated principal amount thereof.

 

(m)          To
the extent that any of the representations and warranties contained in this Agreement or any other Loan Document is qualified by
“Material Adverse Effect” or any other materiality qualifier, then any further qualifier as to representations and
warranties being true and correct “in all material respects” contained elsewhere in the Loan Documents shall not apply
with respect to any such representations and warranties.

 

§2.         THE
CREDIT FACILITY.

 

§2.1       Revolving
Credit Loans.

 

(a)          Subject
to the terms and conditions set forth in this Agreement, each of the Lenders severally agrees to lend to the Borrower, and the
Borrower may borrow (and repay and reborrow) from time to time between the Closing Date and the Revolving Credit Maturity Date
upon notice by the Borrower to the Agent given in accordance with §2.7, such sums as are requested by the Borrower for the
purposes set forth in §2.9 up to a maximum aggregate principal amount outstanding (after giving effect to all amounts requested)
at any one time equal to the lesser of (i) the sum of such Lender’s Commitment and (ii) such Lender’s Commitment
Percentage of the sum of (A) the Borrowing Base Availability minus (B) the sum of (1) the amount of all outstanding Revolving Credit
Loans and Swing Loans, plus (2) the aggregate amount of Letter of Credit Liabilities; provided, that, in all events no Default
or Event of Default shall have occurred and be continuing; and provided, further, that the outstanding principal
amount of the Revolving Credit Loans (after giving effect to all amounts requested), Swing Loans and Letter of Credit Liabilities
shall not at any time (i) exceed the lesser of (A) Borrowing Base Availability and (B) the Total Commitment or (ii) cause
a violation of the covenant set forth in §9.1. The Revolving Credit Loans shall be made pro rata in accordance with
each Lender’s Commitment Percentage. Each request for a Revolving Credit Loan hereunder shall constitute a representation
and warranty by the Borrower that all of the conditions required of the Borrower set forth in §§10 and 11 have been satisfied
on the date of such request. The Agent may assume that the conditions in §§10 and 11 have been satisfied unless it receives
prior written notice from a Lender that such conditions have not been satisfied. No Lender shall have any obligation to make Revolving
Credit Loans to the Borrower or participate in Letter of Credit Liabilities in the maximum aggregate principal outstanding balance
of more than the lesser of the amount equal to its Commitment Percentage of the Commitments and the principal face amount of its
Revolving Credit Note.

 

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(b)          The
Revolving Credit Loans shall be evidenced by separate promissory notes of the Borrower in substantially the form of Exhibit B
hereto (collectively, the “Revolving Credit Notes”), dated of even date with this Agreement (except as otherwise
provided in §18.3) and completed with appropriate insertions. One Revolving Credit Note shall be payable to each Lender in
the principal amount equal to such Lender’s Commitment or, if less, the outstanding amount of all Revolving Credit Loans
made by such Lender, plus interest accrued thereon, as set forth below. The Borrower irrevocably authorizes the Agent to make or
cause to be made, at or about the time of the Drawdown Date of any Revolving Credit Loan or the time of receipt of any payment
of principal thereof, an appropriate notation on the Agent’s Record reflecting the making of such Revolving Credit Loan or
(as the case may be) the receipt of such payment. The outstanding amount of the Revolving Credit Loans set forth on the Agent’s
Record shall be prima facie evidence of the principal amount thereof owing and unpaid to each Lender, but the failure to
record, or any error in so recording, any such amount on the Agent’s Record shall not limit or otherwise affect the obligations
of the Borrower hereunder or under any Revolving Credit Note to make payments of principal of or interest on any Revolving Credit
Note when due. There shall not be deemed to have occurred, and there has not otherwise occurred, any payment in full, satisfaction
or novation of the indebtedness evidenced by the “Revolving Credit Notes”, as defined in the Existing Credit Agreement,
which indebtedness is instead allocated among the Lenders as of the date hereof, as applicable, in accordance with their respective
Commitment Percentages. On the Closing Date, the Lenders shall make adjustments among themselves so that the outstanding Revolving
Credit Loans are consistent with their Commitment Percentages.

 

§2.2       [Intentionally
Omitted.]

 

§2.3       Facility
Unused Fee. The Borrower agrees to pay to the Agent for the account of the Lenders (other than a Defaulting Lender for such
period of time as such Lender is a Defaulting Lender) in accordance with their respective Commitment Percentages a facility unused
fee (the “Unused Fee”) calculated by multiplying the Unused Fee Percentage, calculated as a per diem rate, times the
excess of the Total Commitment over the outstanding principal amount of Revolving Credit Loans, Letter of Credit Liabilities and
Swing Loans, during each calendar quarter or portion thereof commencing on the date hereof and ending on the Revolving Credit Maturity
Date. The Unused Fee shall be payable quarterly in arrears on the first day of each calendar quarter for the immediately preceding
calendar quarter or portion thereof, and on any earlier date on which the Commitments shall be reduced or shall terminate as provided
in §2.4, with a final payment on the Revolving Credit Maturity Date.

 

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§2.4       Reduction
and Termination of the Commitments. The Borrower shall have the right at any time and from time to time upon five (5) Business
Days’ prior written notice to the Agent to reduce by $5,000,000.00 or an integral multiple of $1,000,000.00 in excess thereof
(provided that in no event shall the Total Commitment be reduced in such manner to an amount less than fifty percent (50.0%)
of the highest Total Commitment at any time existing under this Agreement) or to terminate entirely the Commitments, whereupon
the Commitments of the Lenders shall be reduced pro rata in accordance with their respective Commitment Percentages of the amount
specified in such notice or, as the case may be, terminated, any such termination or reduction to be without penalty except as
otherwise set forth in §4.7; provided, however, that no such termination or reduction shall be permitted if,
after giving effect thereto, the sum of Outstanding Revolving Credit Loans, the Outstanding Swing Loans and the Letter of Credit
Liabilities would exceed the Commitments of the Lenders as so terminated or reduced. Promptly after receiving any notice from the
Borrower delivered pursuant to this §2.4, the Agent will notify the Lenders of the substance thereof. Any reduction of the
Commitments shall also result in a proportionate reduction (rounded to the next lowest integral multiple of $100,000.00) in the
maximum amount of Swing Loans and Letters of Credit. Within five (5) days of the effective date of any such reduction or termination,
upon receipt of an invoice from Agent, the Borrower shall pay to the Agent for the respective accounts of the Lenders the full
amount of any facility fee under §2.3 then accrued on the amount of the reduction. No reduction or termination of the Commitments
may be reinstated.

 

§2.5       Swing
Loan Commitment.

 

(a)          Subject
to the terms and conditions set forth in this Agreement, the Swing Loan Lender agrees to lend to the Borrower (the “Swing
Loans”), and the Borrower may borrow (and repay and reborrow) from time to time between the Closing Date and the date
which is five (5) Business Days prior to the Revolving Credit Maturity Date upon notice by the Borrower to the Swing Loan Lender
given in accordance with this §2.5, such sums as are requested by the Borrower for the purposes set forth in §2.9 in
an aggregate principal amount at any one time outstanding not exceeding the Swing Loan Commitment; provided that in all
events (i) no Default or Event of Default shall have occurred and be continuing; and (ii) the outstanding principal amount
of the Revolving Credit Loans and Swing Loans (after giving effect to all amounts requested) plus Letter of Credit Liabilities
shall not at any time exceed the lesser of (a) the Total Commitment and (b) the Borrowing Base Availability, or cause
a violation of the covenant set forth in §9.1. Notwithstanding anything to the contrary contained in this §2.5, the Swing
Loan Lender shall not be obligated to make any Swing Loan at a time when any other Lender is a Defaulting Lender, unless the Swing
Loan Lender is reasonably satisfied that the participation therein will otherwise be fully allocated to the Lenders that are Non-Defaulting
Lenders consistent with §2.13(c) and the Defaulting Lender shall not participate therein, except to the extent the Swing
Loan Lender has entered into arrangements with the Borrower or such Defaulting Lender that are satisfactory to the Swing Loan Lender
in its good faith determination to eliminate the Swing Loan Lender’s Fronting Exposure with respect to any such Defaulting
Lender, including the delivery of cash collateral. Swing Loans shall constitute “Revolving Credit Loans” for all purposes
hereunder. The funding of a Swing Loan hereunder shall constitute a representation and warranty by the Borrower that all of the
conditions set forth in §§10 and 11 have been satisfied on the date of such funding. The Swing Loan Lender may assume
that the conditions in §§10 and 11 have been satisfied unless the Swing Loan Lender has received written notice from
a Lender that such conditions have not been satisfied. Each Swing Loan shall be due and payable within one (1) Business Day of
demand by Agent but in any event no later than five (5) Business Days of the date such Swing Loan was provided and the Borrower
hereby agrees (to the extent not repaid as contemplated by §2.5(d)) to repay each Swing Loan on or before the date that is
five (5) Business Days from the date such Swing Loan was provided. A Swing Loan may not be refinanced with another Swing Loan.

 

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(b)          The
Swing Loans shall be evidenced by a separate promissory note of the Borrower in substantially the form of Exhibit C
hereto (the “Swing Loan Note”), dated the date of this Agreement and completed with appropriate insertions.
The Swing Loan Note shall be payable to the Swing Loan Lender in the principal face amount equal to the Swing Loan Commitment and
shall be payable as set forth below. The Borrower irrevocably authorizes the Swing Loan Lender to make or cause to be made, at
or about the time of the Drawdown Date of any Swing Loan or at the time of receipt of any payment of principal thereof, an appropriate
notation on the Swing Loan Lender’s Record reflecting the making of such Swing Loan or (as the case may be) the receipt of
such payment. The outstanding amount of the Swing Loans set forth on the Swing Loan Lender’s Record shall be prima facie
evidence of the principal amount thereof owing and unpaid to the Swing Loan Lender, but the failure to record, or any error in
so recording, any such amount on the Swing Loan Lender’s Record shall not limit or otherwise affect the obligations of the
Borrower hereunder or under the Swing Loan Note to make payments of principal of or interest on any Swing Loan Note when due. There
shall not be deemed to have occurred, and there has not otherwise occurred, any payment, satisfaction or novation of the indebtedness,
if any, evidenced by the “Swing Loan Note,” as defined in the Existing Credit Agreement, which indebtedness is instead
evidenced by the Swing Loan Note.

 

(c)          The
Borrower may request a Swing Loan by delivering to the Swing Loan Lender a Loan Request executed by an Authorized Officer no later
than 1:00 p.m. (Cleveland time) on the requested Drawdown Date specifying the amount of the requested Swing Loan (which shall be
in the minimum amount of $1,000,000.00 or an integral multiple of $250,000.00 in excess thereof) and providing the wire instructions
for the delivery of the Swing Loan proceeds. The Loan Request shall also contain the statements and certifications required by
§2.7. Each such Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to accept such
Swing Loan on the Drawdown Date. Notwithstanding anything herein to the contrary, a Swing Loan shall be a Base Rate Loan and shall
bear interest at the Base Rate plus the Applicable Margin for Tranche A Loans. The proceeds of the Swing Loan will be disbursed
by wire by the Swing Loan Lender to the Borrower no later than 4:00 p.m. (Cleveland time).

 

(d)          The
Swing Loan Lender shall, within two (2) Business Days after the Drawdown Date with respect to such Swing Loan, request each Lender
to make a Revolving Credit Loan pursuant to §2.1 in an amount equal to such Lender’s Commitment Percentage of the amount
of the Swing Loan outstanding on the date such notice is given. In the event that the Borrower does not notify the Agent in writing
otherwise on or before noon (Cleveland Time) on the Business Day of the Drawdown Date with respect to such Swing Loan, the Agent
shall notify the Lenders that such Revolving Credit Loan shall be a LIBOR Rate Loan that is a Tranche A Loan with an Interest Period
of one (1) month, provided that the making of such LIBOR Rate Loan will not be in contravention of any other provision
of this Agreement, or if the making of a LIBOR Rate Loan would be in contravention of this Agreement, then such notice shall indicate
that such loan shall be a Base Rate Loan. The Borrower hereby irrevocably authorizes and directs the Swing Loan Lender to so act
on its behalf, and agrees that any amount advanced to the Agent for the benefit of the Swing Loan Lender pursuant to this §2.5(d) shall
be considered a Revolving Credit Loan pursuant to §2.1. Unless any of the events described in §§12.1(g), 12.1(h) or
12.1(i) shall have occurred (in which event the procedures of §2.5(e) shall apply), each Lender shall make the proceeds
of its Revolving Credit Loan available to the Swing Loan Lender for the account of the Swing Loan Lender at the Agent’s Head
Office prior to 12:00 noon (Cleveland time) in funds immediately available no later than one (1) Business Day after the date such
request was made by the Swing Loan Lender just as if the Lenders were funding directly to the Borrower, so that thereafter such
Obligations shall be evidenced by the Revolving Credit Notes. The proceeds of such Revolving Credit Loan shall be immediately applied
to repay the Swing Loans.

 

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(e)          If
for any reason a Swing Loan cannot be refinanced by a Revolving Credit Loan pursuant to §2.5(d), each Lender will, on the
date such Revolving Credit Loan pursuant to §2.5(d) was to have been made, purchase an undivided participation interest
in the Swing Loan in an amount equal to its Commitment Percentage of such Swing Loan. Each Lender will immediately transfer to
the Swing Loan Lender in immediately available funds the amount of its participation and upon receipt thereof the Swing Loan Lender
will deliver to such Lender a Swing Loan participation certificate dated the date of receipt of such funds and in such amount.

 

(f)          Whenever
at any time after the Swing Loan Lender has received from any Lender such Lender’s participation interest in a Swing Loan,
the Swing Loan Lender receives any payment on account thereof, the Swing Loan Lender will distribute to such Lender its participation
interest in such amount (appropriately adjusted in the case of interest payments to reflect the period of time during which such
Lender’s participating interest was outstanding and funded); provided, however, that in the event that such
payment received by the Swing Loan Lender is required to be returned, such Lender will return to the Swing Loan Lender any portion
thereof previously distributed by the Swing Loan Lender to it.

 

(g)          Each
Lender’s obligation to fund a Loan as provided in §2.5(d) or to purchase participation interests pursuant to §2.5(e) shall
be absolute and unconditional and shall not be affected by any circumstance, including, without limitation, (a) any setoff,
counterclaim, recoupment, defense or other right which such Lender or the Borrower may have against the Swing Loan Lender, the
Borrower or anyone else for any reason whatsoever; (b) the occurrence or continuance of a Default or an Event of Default;
(c) any adverse change in the condition (financial or otherwise) of REIT or any of its Subsidiaries; (d) any breach of
this Agreement or any of the other Loan Documents by the Borrower or any Guarantor or any Lender; or (e) any other circumstance,
happening or event whatsoever, whether or not similar to any of the foregoing. Any portions of a Swing Loan not so purchased or
converted may be treated by the Agent and the Swing Loan Lender as against such Lender as a Revolving Credit Loan which was not
funded by the non-purchasing Lender, thereby making such Lender a Defaulting Lender. Each Swing Loan, once so sold or converted,
shall cease to be a Swing Loan for the purposes of this Agreement, but shall be a Revolving Credit Loan made by each Lender under
its Commitment.

 

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§2.6       Interest
on Loans.

 

(a)          Each
Base Rate Loan that is a Tranche A Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending
on the date on which such Base Rate Loan is repaid or converted to a LIBOR Rate Loan at the rate per annum equal to the sum of
the Base Rate plus the Applicable Margin for Tranche A Loans.

 

(b)          Each
LIBOR Rate Loan that is a Tranche A Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending
on the last day of each Interest Period with respect thereto at the rate per annum equal to the sum of LIBOR determined for such
Interest Period plus the Applicable Margin for Tranche A Loans.

 

(c)          Each
Base Rate Loan that is a Tranche B Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending
on the date on which such Base Rate Loan is repaid or converted to a LIBOR Rate Loan at the rate per annum equal to the sum of
the Base Rate plus the Applicable Margin for Tranche B Loans.

 

(d)          Each
LIBOR Rate Loan that is a Tranche B Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending
on the last day of each Interest Period with respect thereto at the rate per annum equal to the sum of LIBOR determined for such
Interest Period plus the Applicable Margin for Tranche B Loans.

 

(e)          Each
Base Rate Loan that is a Tranche C Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending
on the date on which such Base Rate Loan is repaid or converted to a LIBOR Rate Loan at the rate per annum equal to the sum of
the Base Rate plus the Applicable Margin for Tranche C Loans.

 

(f)          Each
LIBOR Rate Loan that is a Tranche C Loan shall bear interest for the period commencing with the Drawdown Date thereof and ending
on the last day of each Interest Period with respect thereto at the rate per annum equal to the sum of LIBOR determined for such
Interest Period plus the Applicable Margin for Tranche C Loans.

 

(g)          The
Borrower promises to pay interest on each Loan in arrears on each Interest Payment Date with respect thereto.

 

(h)          Base
Rate Loans and LIBOR Rate Loans may be converted to Loans of the other Type as provided in §4.1.

 

§2.7       Requests
for Loans. The Borrower shall give to the Agent written notice executed by an Authorized Officer in the form of Exhibit D
hereto (or telephonic notice confirmed in writing in the form of Exhibit D hereto) of each Revolving Credit Loan requested
hereunder (a “Loan Request”) by 11:00 a.m. (Cleveland time) one (1) Business Day prior to the proposed Drawdown
Date with respect to Base Rate Loans and three (3) Business Days prior to the proposed Drawdown Date with respect to LIBOR Rate
Loans. Each such notice shall specify with respect to the requested Revolving Credit Loan the proposed principal amount of such
Revolving Credit Loan, the Type of Revolving Credit Loan, the initial Interest Period (if applicable) for such Revolving Credit
Loan, whether such Revolving Credit Loan shall be a Tranche A Loan, a Tranche B Loan or a Tranche C Loan, and the Drawdown Date.
Each such notice shall also contain a general statement as to the purpose for which such advance shall be used (which purpose shall
be in accordance with the terms of §2.9). Promptly upon receipt of any such notice, the Agent shall notify each of the Lenders
thereof. Each such Loan Request shall be irrevocable and binding on the Borrower and shall obligate the Borrower to accept the
Revolving Credit Loan requested from the Lenders on the proposed Drawdown Date. Nothing herein shall prevent the Borrower from
seeking recourse against any Lender that fails to advance its proportionate share of a requested Revolving Credit Loan as required
by this Agreement. Each Loan Request shall be (a) for a Base Rate Loan in a minimum aggregate amount of $500,000.00 or an
integral multiple of $100,000.00 in excess thereof; or (b) for a LIBOR Rate Loan in a minimum aggregate amount of $500,000.00
or an integral multiple of $100,000.00 in excess thereof; provided, however, that there shall be no more than eight
(8) LIBOR Rate Loans relating to Revolving Credit Loans outstanding at any one time.

 

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§2.8       Funds
for Loans.

 

(a)          Not
later than 1:00 p.m. (Cleveland time) on the proposed Drawdown Date of any Loans, each of the Lenders will make available to the
Agent, at the Agent’s Head Office, in immediately available funds, the amount of such Lender’s Commitment Percentage
of the amount of the requested Loans which may be disbursed pursuant to §2.1. Upon receipt from each such Lender of such amount,
and upon receipt of the documents required by §§10 and 11, §2.11 (if applicable) and the satisfaction of the other
conditions set forth therein, to the extent applicable, the Agent will make available to the Borrower the aggregate amount of such
Loans made available to the Agent by the Lenders, as applicable, by crediting such amount to the account of the Borrower maintained
at the Agent’s Head Office. The failure or refusal of any Lender to make available to the Agent at the aforesaid time and
place on any Drawdown Date the amount of its applicable Commitment Percentage of the requested Loans shall not relieve any other
Lender from its several obligation hereunder to make available to the Agent the amount of such other Lender’s applicable
Commitment Percentage of any requested Loans, including any additional Loans that may be requested subject to the terms and conditions
hereof to provide funds to replace those not advanced by the Lender so failing or refusing.

 

(b)          Unless
the Agent shall have been notified by any Lender prior to the applicable Drawdown Date that such Lender will not make available
to the Agent such Lender’s Commitment Percentage of a proposed Loan, the Agent may in its discretion assume that such Lender
has made such Loan available to the Agent in accordance with the provisions of this Agreement and the Agent may, if it chooses,
in reliance upon such assumption make such Loan available to the Borrower, and such Lender shall be liable to the Agent for the
amount of such advance. If such Lender does not pay such corresponding amount upon the Agent’s demand therefor, the Agent
will promptly notify the Borrower, and the Borrower shall promptly pay such corresponding amount to the Agent. The Agent shall
also be entitled to recover from the Lender or the Borrower, as the case may be, interest on such corresponding amount in respect
of each day from the date such corresponding amount was made available by the Agent to the Borrower to the date such corresponding
amount is recovered by the Agent at a per annum rate equal to (i) from the Borrower at the applicable rate for such Loan or
(ii) from a Lender at the Federal Funds Effective Rate plus one percent (1%).

 

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§2.9       Use
of Proceeds. The Borrower will use the proceeds of the Loans solely for (a) payment of closing costs in connection with
this Agreement, (b) repayment of Indebtedness, (c) making Investments permitted by §8.3, and (d) general corporate
and working capital purposes.

 

§2.10      Letters
of Credit.

 

(a)          Subject
to the terms and conditions set forth in this Agreement, at any time and from time to time from the Closing Date through the day
that is thirty (30) days prior to the Revolving Credit Maturity Date, the Issuing Lender shall issue such Letters of Credit as
the Borrower may request upon the delivery of a written request in the form of Exhibit E hereto (a “Letter
of Credit Request”) to the Issuing Lender, provided that (i) no Default or Event of Default shall have occurred
and be continuing, (ii) upon issuance of such Letter of Credit, the Letter of Credit Liabilities shall not exceed the Letter
of Credit Commitment, (iii) in no event shall the sum of the outstanding principal amount of the Revolving Credit Loans, Swing
Loans and Letter of Credit Liabilities (after giving effect to any requested Letters of Credit) exceed the lesser of (x) the Total
Commitment and (y) the Borrowing Base Availability, or cause a violation of the covenant set forth in §9.1, (iv) the
conditions set forth in §§10 and 11 shall have been satisfied, and (v) in no event shall any amount drawn under
a Letter of Credit be available for reinstatement or a subsequent drawing under such Letter of Credit. Notwithstanding anything
to the contrary contained in this §2.10, the Issuing Lender shall not be obligated to issue, amend, extend, renew or increase
any Letter of Credit at a time when any other Lender is a Defaulting Lender, unless the Issuing Lender is satisfied that the participation
therein will otherwise be fully allocated to the Lenders that are Non-Defaulting Lenders consistent with §2.13(c) and the
Defaulting Lender shall have no participation therein, except to the extent the Issuing Lender has entered into arrangements with
the Borrower or such Defaulting Lender which are satisfactory to the Issuing Lender in its good faith determination to eliminate
the Issuing Lender’s Fronting Exposure with respect to any such Defaulting Lender, including the delivery of cash collateral.
The Issuing Lender may assume that the conditions in §§10 and 11 have been satisfied unless it receives written notice
from a Lender that such conditions have not been satisfied. Each Letter of Credit Request shall be executed by an Authorized Officer
of the Borrower. The Issuing Lender shall be entitled to conclusively rely on such Person’s authority to request a Letter
of Credit on behalf of the Borrower. The Issuing Lender shall have no duty to verify the authenticity of any signature appearing
on a Letter of Credit Request. The Borrower assumes all risks with respect to the use of the Letters of Credit. Unless the Issuing
Lender and the Agent otherwise consent, the term of any Letter of Credit shall not exceed a period of time commencing on the issuance
of the Letter of Credit and ending one year after the date of issuance thereof, subject to extension pursuant to an “evergreen”
clause acceptable to the Agent and the Issuing Lender (but in any event the term shall not extend beyond five (5) Business Days
prior to the Revolving Credit Maturity Date). The amount available to be drawn under any Letter of Credit shall reduce on a dollar-for-dollar
basis the amount available to be drawn under the Total Commitment as a Revolving Credit Loan. Issuing Lender shall honor drawings
in accordance with the terms of the applicable Letter of Credit if strictly presented in accordance with the terms of the applicable
Letter of Credit, and subject to the terms and conditions of this Agreement, Borrower’s ability to obtain Letters of Credit
shall be fully revolving, and accordingly Borrower may, during the foregoing period but subject to the terms of this Agreement,
obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed by Borrower
and terminated.

 

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(b)          Each
Letter of Credit Request shall be submitted to the Issuing Lender at least five (5) Business Days (or such shorter period as the
Issuing Lender may approve) prior to the date upon which the requested Letter of Credit is to be issued. Each such Letter of Credit
Request shall contain a statement as to the purpose for which such Letter of Credit shall be used (which purpose shall be in accordance
with the terms of this Agreement) and shall state whether such Letter of Credit is being issued under availability with respect
to a Tranche A Loan, a Tranche B Loan or a Tranche C Loan. The Borrower shall further deliver to the Issuing Lender such additional
applications (which application as of the date hereof is in the form of Exhibit F attached hereto) and documents as
the Issuing Lender may require, in conformity with the then standard practices of its letter of credit department, in connection
with the issuance of such Letter of Credit; provided that in the event of any conflict, the terms of this Agreement shall
control.

 

(c)          The
Issuing Lender shall, subject to the conditions set forth in this Agreement, issue the Letter of Credit on or before five (5) Business
Days following receipt of the documents last due pursuant to §2.10(b). Each Letter of Credit shall be in form and substance
reasonably satisfactory to the Issuing Lender in its reasonable discretion.

 

(d)          Upon
the issuance of a Letter of Credit, each Lender shall be deemed to have purchased a participation therein from the Issuing Lender
in an amount equal to its respective Commitment Percentage of the amount of such Letter of Credit. No Lender’s obligation
to participate in a Letter of Credit shall be affected by any other Lender’s failure to perform as required herein with respect
to such Letter of Credit or any other Letter of Credit.

 

(e)          Upon
the issuance of each Letter of Credit, the Borrower shall pay to the Issuing Lender (i) for its own account, a Letter of Credit
fronting fee calculated at the rate equal to one-eighth of one percent (0.125%) per annum of the face amount of such Letter of
Credit (which fee shall not be less than $1,500 in any event) and an administrative charge of $250, and (ii) for the accounts
of the Lenders (including the Issuing Lender) in accordance with their respective percentage shares of participation in such Letter
of Credit, a Letter of Credit fee calculated at the rate per annum equal to the Applicable Margin then applicable to LIBOR Rate
Loans for Tranche A Loans on the face amount of such Letter of Credit. Such fees shall be payable in quarterly installments in
arrears with respect to each Letter of Credit within five (5) days of receipt of an invoice from the Agent delivered each calendar
quarter following the date of issuance and continuing on each quarter or portion thereof thereafter, as applicable, or on any earlier
date on which the Commitments shall terminate and on the expiration or return of any Letter of Credit. In addition, the Borrower
shall pay to the Issuing Lender for its own account within five (5) days of demand of the Issuing Lender the standard issuance,
documentation and service charges for Letters of Credit issued from time to time by the Issuing Lender.

 

(f)          In
the event that any amount is drawn under a Letter of Credit by the beneficiary thereof, the Borrower shall reimburse the Issuing
Lender by having such amount drawn treated as an outstanding Base Rate Loan under this Agreement (the Borrower being deemed to
have requested a Base Rate Loan on such date in an amount equal to the amount of such drawing and such amount drawn shall be treated
as an outstanding Base Rate Loan under this Agreement) and the Agent shall promptly notify each Lender by telecopy, email, telephone
(confirmed in writing) or other similar means of transmission, and each Lender shall promptly and unconditionally pay to the Agent,
for the Issuing Lender’s own account, an amount equal to such Lender’s Commitment Percentage of such Letter of Credit
(to the extent of the amount drawn). If and to the extent any Lender shall not make such amount available on the Business Day on
which such draw is funded, such Lender agrees to pay such amount to the Agent forthwith on demand, together with interest thereon,
for each day from the date on which such draw was funded until the date on which such amount is paid to the Agent, at the Federal
Funds Effective Rate until three (3) days after the date on which the Agent gives notice of such draw and at the Federal Funds
Effective Rate plus one percent (1%) for each day thereafter. Further, such Lender shall be deemed to have assigned any and all
payments made of principal and interest on its Revolving Credit Loans, amounts due with respect to its participations in Letters
of Credit and any other amounts due to it hereunder to the Agent to fund the amount of any drawn Letter of Credit which such Lender
was required to fund pursuant to this §2.10(f) until such amount has been funded (as a result of such assignment or otherwise).
In the event of any such failure or refusal, the Lenders not so failing or refusing shall be entitled to a priority secured position
for such amounts as provided in §12.5. The failure of any Lender to make funds available to the Agent in such amount shall
not relieve any other Lender of its obligation hereunder to make funds available to the Agent pursuant to this §2.10(f).

 

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(g)          If
after the issuance of a Letter of Credit pursuant to §2.10(c) by the Issuing Lender, but prior to the funding of any
portion thereof by a Lender, for any reason a drawing under a Letter of Credit cannot be refinanced as a Revolving Credit Loan,
each Lender will, on the date such Revolving Credit Loan pursuant to §2.10(f) was to have been made, purchase an undivided
participation interest in the Letter of Credit in an amount equal to its Commitment Percentage of the amount of such Letter of
Credit. Each Lender will immediately transfer to the Issuing Lender in immediately available funds the amount of its participation
and upon receipt thereof the Issuing Lender will deliver to such Lender a Letter of Credit participation certificate dated the
date of receipt of such funds and in such amount.

 

(h)          Whenever
at any time after the Issuing Lender has received from any Lender any such Lender’s payment of funds under a Letter of Credit
and thereafter the Issuing Lender receives any payment on account thereof, then the Issuing Lender will distribute to such Lender
its participation interest in such amount (appropriately adjusted in the case of interest payments to reflect the period of time
during which such Lender’s participation interest was outstanding and funded); provided, however, that in the
event that such payment received by the Issuing Lender is required to be returned, such Lender will return to the Issuing Lender
any portion thereof previously distributed by the Issuing Lender to it.

 

(i)          The
issuance of any supplement, modification, amendment, renewal or extension to or of any Letter of Credit shall be treated in all
respects the same as the issuance of a new Letter of Credit.

 

(j)          The
Borrower assumes all risks of the acts, omissions, or misuse of any Letter of Credit by the beneficiary thereof. Neither the Agent,
the Issuing Lender nor any Lender will be responsible for (i) the form, validity, sufficiency, accuracy, genuineness or legal
effect of any Letter of Credit or any document submitted by any party in connection with the issuance of any Letter of Credit,
even if such document should in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(ii) the form, validity, sufficiency, accuracy, genuineness or legal effect of any instrument transferring or assigning or
purporting to transfer or assign any Letter of Credit or the rights or benefits thereunder or proceeds thereof in whole or in part,
which may prove to be invalid or ineffective for any reason; (iii) failure of any beneficiary of any Letter of Credit to comply
fully with the conditions required in order to demand payment under a Letter of Credit; (iv) errors, omissions, interruptions
or delays in transmission or delivery of any messages, by mail, cable, telecopy, email or otherwise; (v) errors in interpretation
of technical terms; (vi) any loss or delay in the transmission or otherwise of any document or draft required by or from a
beneficiary in order to make a disbursement under a Letter of Credit or the proceeds thereof; (vii) for the misapplication
by the beneficiary of any Letter of Credit of the proceeds of any drawing under such Letter of Credit; and (viii) for any
consequences arising from causes beyond the control of the Agent or any Lender. None of the foregoing will affect, impair or prevent
the vesting of any of the rights or powers granted to the Agent, the Issuing Lender or the Lenders hereunder. In furtherance and
extension and not in limitation or derogation of any of the foregoing, any act taken or omitted to be taken by the Agent, the Issuing
Lender or the other Lenders in good faith will be binding on the Borrower and will not put the Agent, the Issuing Lender or the
other Lenders under any resulting liability to the Borrower; provided nothing contained herein shall relieve the Issuing
Lender for liability to the Borrower arising as a result of the gross negligence or willful misconduct of the Issuing Lender as
determined by a court of competent jurisdiction after the exhaustion of all applicable appeal periods.

 

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(k)          Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of Credit to the beneficiary thereof, the Issuing Lender
shall also deliver to Borrower an electronic copy of such Letter of Credit or amendment.

 

§2.11     Increase
in Total Commitment.   (a) Provided that no Default or Event of
Default has occurred and is continuing, subject to the terms and conditions set forth in this §2.11, the Borrower shall have
the option at any time and from time to time, before the Revolving Credit Maturity Date to request one or more increases in the
Total Commitment to an aggregate amount of not more than $400,000,000.00 by giving written notice to the Agent (each, an “Increase
Notice”; and the amount of such requested increase is a “Commitment Increase”); provided that any such
individual increase to the Commitments must be in a minimum amount of $10,000,000.00 and increments of $5,000,000.00 in excess
thereof unless otherwise approved by the Agent in its sole discretion. Upon receipt of any Increase Notice, the Agent shall consult
with KBCM and shall notify the Borrower of the amount of the facility fees to be paid to any Lenders who increase their respective
Commitment in connection with such increase in the Total Commitment (which shall be in addition to the fees to be paid to KBCM
pursuant to the Agreement Regarding Fees). If the Borrower agrees to pay the facility fees so determined, the Agent shall send
a notice to all Lenders (each, an “Additional Commitment Request Notice”) informing them of the Borrower’s request
to increase the Total Commitment and of the facility fees to be paid with respect thereto. Each Lender who desires to increase
its Commitment upon such terms shall provide the Agent with a written commitment letter specifying the amount of such increase
which it is willing to provide prior to such deadline as may be specified in the Additional Commitment Request Notice. If the requested
increase is oversubscribed then the Agent and KBCM, in consultation with the Borrower, shall allocate the Commitment Increase among
the Lenders who provide such commitment letters on such basis as the Agent and KBCM shall determine in their sole discretion. If
the increases to the Commitments so provided are not sufficient to provide the full amount of the Commitment Increase requested
by the Borrower, then the Agent, KBCM or the Borrower may, but shall not be obligated to, invite one or more banks or lending institutions
(which banks or lending institutions shall be reasonably acceptable to the Agent, KBCM and the Borrower) to become a Lender and
provide an additional Commitment. The Agent shall provide all Lenders with a notice setting forth the amount, if any, of the additional
Commitment to be provided by each Lender and the revised Commitment Percentages which shall be applicable after the effective date
of the Commitment Increase specified therein (each, a “Commitment Increase Date”). In no event shall any Lender be
obligated to increase any portion of its Commitment.

 

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(b)          On
any Commitment Increase Date, the outstanding principal balance of the Revolving Credit Loans shall be reallocated among the Lenders
such that after the applicable Commitment Increase Date the outstanding principal amount of Revolving Credit Loans owed to each
Lender shall be equal to such Lender’s Commitment Percentage (as in effect after the applicable Commitment Increase Date)
of the outstanding principal amount of all Revolving Credit Loans. The participation interests of the Lenders in Swing Loans and
Letters of Credit shall be similarly adjusted. On any Commitment Increase Date, each of those Lenders whose Commitment Percentage
is increasing shall advance the funds to the Agent and the funds so advanced shall be distributed among the Lenders whose Commitment
Percentage is decreasing as necessary to accomplish the required reallocation of the outstanding Revolving Credit Loans. The funds
so advanced shall be Base Rate Loans until converted to LIBOR Rate Loans which are allocated among all Lenders based on their Commitment
Percentages.

 

(c)          Upon
the effective date of each increase in the Total Commitment pursuant to this §2.11, (i) the Agent shall unilaterally revise
Schedule 1.1 in its own records to reflect the name and address, Commitment and Commitment Percentage of each Lender
following such increase and the Borrower shall execute and deliver to the Agent a new Revolving Credit Note for each Lender whose
Commitment has changed so that the principal amount of such Lender’s Revolving Credit Note shall equal its Commitment and
(ii) the Swing Loan Commitment shall automatically increase to the lesser of (A) an amount equal to ten percent (10%) of the new
Total Commitment and (B) the Commitment of the Swing Loan Lender, and the Borrower shall execute and deliver to the Agent a new
Swing Loan Note for the Swing Loan Lender so that the principal amount of the Swing Loan Note shall equal the Swing Loan Commitment.
The Agent shall deliver such replacement Revolving Credit Notes and Swing Loan Note to the respective Lenders in exchange for the
Revolving Credit Notes and Swing Loan Note replaced thereby which shall be surrendered by such Lenders and delivered to the Borrower.
Such new Revolving Credit Notes and Swing Loan Note shall provide that they are replacements for the surrendered Revolving Credit
Notes and Swing Loan Note and that they do not constitute a novation, shall be dated as of the applicable Commitment Increase Date
and shall otherwise be in substantially the form of the replaced Revolving Credit Notes or Swing Loan Note, as applicable. Simultaneously
with such increase, the Borrower shall deliver an opinion of counsel, addressed to the Lenders and the Agent, relating to the due
authorization, execution and delivery of such new Notes and the enforceability thereof, in form and substance substantially similar
to the opinion delivered in connection with the first disbursement under this Agreement. The surrendered Revolving Credit Notes
and Swing Loan Notes (as applicable) shall be canceled and returned to the Borrower.

 

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(d)          Notwithstanding
anything to the contrary contained herein, the obligation of the Agent and the Lenders to increase the Total Commitment pursuant
to this §2.11 shall be conditioned upon satisfaction of the following conditions precedent which must be satisfied prior to
the effectiveness of any increase of the Total Commitment:

 

(i)          Payment
of Activation Fee. The Borrower shall pay (A) to the Agent and KBCM those fees described in and contemplated by the Agreement
Regarding Fees with respect to the applicable Commitment Increase, and (B) to KBCM such facility fees as the Lenders who are
providing an additional Commitment or increasing their respective Commitment may require to increase the aggregate Commitment,
which fees shall, when paid, be fully earned and non-refundable under any circumstances. KBCM shall pay to the Lenders acquiring
the applicable Commitment Increase certain fees pursuant to their separate agreement; and

 

(ii)         No
Default. On the date any Increase Notice is given and on the date such increase becomes effective, both immediately before
and after the Total Commitment is increased, there shall exist no Default or Event of Default; and

 

(iii)        Representations
True. The representations and warranties made by the Borrower and the Guarantors in the Loan Documents or otherwise made by
or on behalf of the Borrower or the Guarantors in connection therewith or after the date thereof shall have been true and correct
in all material respects when made and shall also be true and correct in all material respects on the date of such Increase Notice
and on the date the Total Commitment is increased, both immediately before and after the Total Commitment is increased; and

 

(iv)        Beneficial
Ownership Certification. If requested by the Agent or any Lender, Borrower shall have delivered, at least two (2) Business
Days prior to the Commitment Increase Date, to the Agent (and any such Lender) a completed and executed Beneficial Ownership Certification;
and

 

(v)         Additional
Documents and Expenses. The Borrower and the Guarantors shall execute and deliver to the Agent and the Lenders such additional
documents (including, without limitation, amendments to the Loan Documents to provide that the Collateral secures the same and
the Guaranty guarantees the same), instruments, certifications and opinions as the Agent may reasonably require (including, without
limitation, in the case of the Borrower, a Compliance Certificate and Borrowing Base Certificate, demonstrating compliance with
all covenants, representations and warranties set forth in the Loan Documents after giving effect to the increase) and the Borrower
shall pay the cost of any title searches, updated UCC searches, title endorsements, all recording costs and fees, and any and all
intangible taxes or other documentary or mortgage taxes, assessments or charges or any similar fees, taxes or expenses which are
incurred by the Agent, KBCM or the Lenders in connection with such increase.

 

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§2.12     Extension
of Maturity Date.

 

(a)          The
Borrower shall have the one-time right and option to extend the Maturity Date to December 28, 2022 upon satisfaction of the following
conditions precedent, which must be satisfied prior to the effectiveness of any extension of the Maturity Date:

 

(i)          Extension
Request. The Borrower shall deliver written notice of such request (the “Extension Request”) to the Agent not earlier
than the date which is ninety (90) days and not later than the date which is thirty (30) days prior to the Maturity Date (as determined
without regard to such extension). Borrower shall have the right to revoke the Extension Request at any time and for any reason
prior to the then-current Maturity Date (provided, that Borrower reimburses Agent for any actual out-of-pocket costs incurred in
connection with any such extension request or revocation);

 

(ii)         Payment
of Extension Fee. Prior to the commencement of the extension term, the Borrower shall pay to the Agent for the pro rata accounts
of the Lenders in accordance with their respective Commitments an extension fee in an amount equal to fifteen (15) basis points
on the Total Commitment in effect on the Maturity Date (as determined without regard to such extension), which fee shall, when
paid, be fully earned and non-refundable under any circumstances.

 

(iii)        No
Default. On the date the Extension Request is given and on the Maturity Date (as determined without regard to such extension)
there shall exist no Default or Event of Default.

 

(iv)        Representations.
The representations and warranties made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries
contained in this Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with
this Agreement shall have been true and correct in all material respects both as of the date as of which they were made and shall
also be true and correct in all material respects as of the time of the date such Extension Request is given and on the Maturity
Date (as determined without regard to such Extension), except to the extent of changes resulting from transactions or other events
permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made
as of a specified date shall be required to be true and correct only as of such specified date).

 

(v)         Pro
Forma Covenant Compliance. Borrower shall have delivered to Agent evidence reasonably satisfactory to Agent that Borrower will
be in pro forma compliance with the Borrowing Base Availability and the covenants set forth in §9 immediately after giving
effect to the extension.

 

(vi)        Appraisals.
At Agent’s option, with respect to any real estate included in the calculation of Borrowing Base Availability where the most
recent Appraisal for such real estate was obtained more than nine (9) months prior to the then effective Maturity Date, Agent shall
have obtained at Borrower’s expense new Appraisals or an update to the existing Appraisals of such real estate and determined
the current As-Is Appraised Value and As-Stabilized Appraised Value thereof, as applicable, and the Borrowing Base Availability.

 

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(vii)       Additional
Documents and Expenses. The Borrower and the Guarantors shall execute and deliver to Agent and Lenders such additional consents
and affirmations and other documents (including, without limitation, amendments to the Security Documents) as the Agent may reasonably
require, and the Borrower shall pay the cost of any title endorsement or update thereto or any update of UCC searches, recordings
costs and fees, and any and all intangible taxes or other documentary or mortgage taxes, assessments or charges or any similar
fees, taxes or expenses which are required to be paid in connection with such extension.

 

(viii)      Beneficial
Ownership Certification. If requested by the Agent or any Lender, Borrower shall have delivered, at least two (2) Business
Days prior to the Maturity Date (as determined without regard to such extension), to the Agent (and any such Lender) a completed
and executed Beneficial Ownership Certification.

 

(b)          In
the event that the Maturity Date has been extended as provided in §2.12(a), the Borrower shall have the one-time right and
option to extend the Maturity Date to December 28, 2023 upon satisfaction of the following conditions precedent, which must be
satisfied prior to the effectiveness of any extension of the Maturity Date:

 

(i)          Extension
Request. The Borrower shall deliver written notice of such request (the “Extension Request”) to the Agent not earlier
than the date which is ninety (90) days and not later than the date which is thirty (30) days prior to the Maturity Date (as determined
without regard to such extension). Borrower shall have the right to revoke the Extension Request at any time and for any reason
prior to the then-current Maturity Date (provided, that Borrower reimburses Agent for any actual out-of-pocket costs incurred in
connection with any such extension request or revocation);

 

(ii)         Payment
of Extension Fee. Prior to the commencement of the extension term, the Borrower shall pay to the Agent for the pro rata accounts
of the Lenders in accordance with their respective Commitments an extension fee in an amount equal to fifteen (15) basis points
on the Total Commitment in effect on the Maturity Date (as determined without regard to such extension), which fee shall, when
paid, be fully earned and non-refundable under any circumstances.

 

(iii)        No
Default. On the date the Extension Request is given and on the Maturity Date (as determined without regard to such extension)
there shall exist no Default or Event of Default.

 

(iv)        Representations.
The representations and warranties made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries
contained in this Agreement, the other Loan Documents or in any document or instrument delivered pursuant to or in connection with
this Agreement shall have been true and correct in all material respects both as of the date as of which they were made and shall
also be true and correct in all material respects as of the time of the date such Extension Request is given and on the Maturity
Date (as determined without regard to such Extension), except to the extent of changes resulting from transactions or other events
permitted by the Loan Documents (it being understood and agreed that any representation or warranty which by its terms is made
as of a specified date shall be required to be true and correct only as of such specified date).

 

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(v)         Pro
Forma Covenant Compliance. Borrower shall have delivered to Agent evidence reasonably satisfactory to Agent that Borrower will
be in pro forma compliance with the Borrowing Base Availability and the covenants set forth in §9 immediately after giving
effect to the extension.

 

(vi)        Appraisals.
At Agent’s option, with respect to any real estate included in the calculation of Borrowing Base Availability where the most
recent Appraisal for such real estate was obtained more than nine (9) months prior to the then effective Maturity Date, Agent shall
have obtained at Borrower’s expense new Appraisals or an update to the existing Appraisals of such real estate and determined
the current As-Is Appraised Value and As-Stabilized Appraised Value thereof, as applicable, and the Borrowing Base Availability.

 

(vii)       Additional
Documents and Expenses. The Borrower and the Guarantors shall execute and deliver to Agent and Lenders such additional consents
and affirmations and other documents (including, without limitation, amendments to the Security Documents) as the Agent may reasonably
require, and the Borrower shall pay the cost of any title endorsement or update thereto or any update of UCC searches, recordings
costs and fees, and any and all intangible taxes or other documentary or mortgage taxes, assessments or charges or any similar
fees, taxes or expenses which are required to be paid in connection with such extension.

 

(viii)      Beneficial
Ownership Certification. If requested by the Agent or any Lender, Borrower shall have delivered, at least two (2) Business
Days prior to the Maturity Date (as determined without regard to such extension), to the Agent (and any such Lender) a completed
and executed Beneficial Ownership Certification.

 

§2.13      Defaulting
Lenders.

 

(a)          If
for any reason any Lender shall be a Defaulting Lender, then, in addition to the rights and remedies that may be available to the
Agent or the Borrower under this Agreement or Applicable Law, such Defaulting Lender’s right to participate in the administration
of the Loans, this Agreement and the other Loan Documents, including without limitation, any right to vote in respect of, to consent
to or to direct any action or inaction of the Agent or to be taken into account in the calculation of the Required Lenders, all
of the Lenders or affected Lenders, shall, except as specifically provided in §27, be suspended during the pendency of such
failure or refusal. If a Lender is a Defaulting Lender because it has failed to make timely payment to the Agent of any amount
required to be paid to the Agent hereunder (without giving effect to any notice or cure periods), in addition to other rights and
remedies which the Agent or the Borrower may have under the immediately preceding provisions or otherwise, the Agent shall be entitled
(i) to collect interest from such Defaulting Lender on such delinquent payment for the period from the date on which the payment
was due until the date on which the payment is made at the Federal Funds Effective Rate plus one percent (1%), (ii) to withhold
or setoff and to apply in satisfaction of the defaulted payment and any related interest, any amounts otherwise payable to such
Defaulting Lender under this Agreement or any other Loan Document and (iii) to bring an action or suit against such Defaulting
Lender in a court of competent jurisdiction to recover the defaulted amount and any related interest. Any amounts received by the
Agent in respect of a Defaulting Lender’s Loans shall be applied as set forth in §2.13(d).

 

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(b)          Any
Non-Defaulting Lender may, but shall not be obligated, in its sole discretion, to acquire all or a portion of a Defaulting Lender’s
Commitments. Any Lender desiring to exercise such right shall give written notice thereof to the Agent and the Borrower no sooner
than two (2) Business Days and not later than five (5) Business Days after such Defaulting Lender became a Defaulting Lender. If
more than one Lender exercises such right, each such Lender shall have the right to acquire an amount of such Defaulting Lender’s
Commitments in proportion to the Commitments of the other Lenders exercising such right. If after such fifth Business Day, the
Lenders have not elected to purchase all of the Commitments of such Defaulting Lender, then the Borrower (so long as no Default
or Event of Default exists) or the Required Lenders may, by giving written notice thereof to the Agent, such Defaulting Lender
and the other Lenders, demand that such Defaulting Lender assign its Commitments to an approved assignee subject to and in accordance
with the provisions of §18.1 for the purchase price provided for below. No party hereto shall have any obligation whatsoever
to initiate any such replacement or to assist in finding an eligible assignee. Upon any such purchase or assignment, and any such
demand with respect to which the conditions specified in §18.1 have been satisfied, the Defaulting Lender’s interest
in the Loans and its rights hereunder (but not its liability in respect thereof or under the Loan Documents or this Agreement to
the extent the same relate to the period prior to the effective date of the purchase) shall terminate on the date of purchase,
and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest to
the purchaser or assignee thereof, including an appropriate Assignment and Acceptance Agreement. The purchase price for the Commitments
of a Defaulting Lender shall be equal to the amount of the principal balance of the Loans outstanding and owed by the Borrower
to the Defaulting Lender plus any accrued but unpaid interest thereon and accrued but unpaid fees. Prior to payment of such purchase
price to a Defaulting Lender, the Agent shall apply against such purchase price any amounts retained by the Agent pursuant to §2.13(d).

 

(c)          During
any period in which there is a Defaulting Lender, all or any part of such Defaulting Lender’s obligation to acquire, refinance
or fund participations in Letters of Credit pursuant to §2.10(g) or Swing Loans pursuant to §2.5(e) shall be
reallocated among the Lenders that are Non-Defaulting Lenders in accordance with their respective Commitment Percentages (computed
without giving effect to the Commitment of such Defaulting Lender; provided that (i) each such reallocation shall be
given effect only if, at the date the applicable Lender becomes a Defaulting Lender, no Default or Event of Default exists, (ii) the
conditions set forth in §§10 and 11 are satisfied at the time of such reallocation (and, unless the Borrower shall have
notified the Agent at such time, the Borrower shall be deemed to have represented and warranted that such conditions are satisfied
at the time), (iii) the representations and warranties in the Loan Documents shall be true and correct in all material respects
on and as of the date of such reallocation with the same effect as though made on and as of such date, and (iv) the aggregate
obligation of each Lender that is a Non-Defaulting Lender to acquire, refinance or fund participations in Letters of Credit and
Swing Loans shall not exceed the positive difference, if any, of (a) the Commitment of that Non-Defaulting Lender minus (b) the
sum of (1) the aggregate outstanding principal amount of the Revolving Credit Loans of that Lender plus (2) such Lender’s
pro rata portion in accordance with its Commitment Percentage of outstanding Letter of Credit Liabilities and Swing Loans. Subject
to §34, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting
Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of
such Non-Defaulting Lender’s increased exposure following such reallocation.

 

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(d)          Any
payment of principal, interest, fees or other amounts received by the Agent for the account of such Defaulting Lender (whether
voluntary or mandatory, at maturity, or otherwise, and including any amounts made available to the Agent for the account of such
Defaulting Lender pursuant to §13), shall be applied at such time or times as may be determined by the Agent as follows: first,
to the payment of any amounts owing by such Defaulting Lender to the Agent (other than with respect to Letter of Credit Liabilities)
hereunder; second, to the payment of any amounts owing by such Defaulting Lender to the Issuing Lender (with respect to Letter
of Credit Liabilities) and/or the Swing Loan Lender hereunder; third, if so determined by the Agent or requested by the Issuing
Lender or the Swing Loan Lender, to be held as cash collateral for future funding obligations of such Defaulting Lender of any
participation in any Letter of Credit or Swing Loan; fourth, as the Borrower may request (so long as no Default or Event of Default
exists), to the funding of any Loan in respect of which such Defaulting Lender has failed to fund its portion thereof as required
by this Agreement, as reasonably determined by the Agent; fifth, if so determined by the Agent and the Borrower, to be held in
a non-interest bearing deposit account and released pro rata in order to (x) satisfy obligations of such Defaulting Lender
to fund Loans or participations under this Agreement and (y) be held as cash collateral for future funding obligations of such
Defaulting Lender of any participation in any Letter of Credit or Swing Loan; sixth, to the payment of any amounts owing to the
Agent or the Lenders (including the Issuing Lender and the Swing Loan Lender) as a result of any judgment of a court of competent
jurisdiction obtained by the Agent or any Lender (including the Issuing Lender and the Swing Loan Lender) against such Defaulting
Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventh, so long as no Default
or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent
jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction;
provided that if (i) such payment is a payment of the principal amount of any Revolving Credit Loans or funded participations
in Letters of Credit or Swing Loans in respect of which such Defaulting Lender has not fully funded its appropriate share and (ii) such
Revolving Credit Loans or funded participations in Letters of Credit or Swing Loans were made at a time when the conditions set
forth in §§10 and 11, to the extent required by this Agreement, were satisfied or waived, such payment shall be applied
solely to pay the Revolving Credit Loans of, and funded participations in Letters of Credit or Swing Loans owed to, all Non-Defaulting
Lenders on a pro rata basis until such time as all Revolving Credit Loans of, and funded and unfunded participations in Letters
of Credit and Swing Loans are held by the Lenders pro rata in accordance with their Commitment Percentages, without regard to §2.13(c),
prior to being applied to the payment of any Revolving Credit Loans of, or funded participations in Letters of Credit or Swing
Loans owed to, such Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are
applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this §2.13(d) shall
be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto, and to the extent allocated
to the repayment of principal of the Loan, shall not be considered outstanding principal under this Agreement.

 

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(e)          Within
five (5) Business Days of written demand by the Issuing Lender or the Swing Loan Lender from time to time, the Borrower shall deliver
to the Agent for the benefit of the Issuing Lender and the Swing Loan Lender cash collateral in an amount sufficient to cover all
Fronting Exposure with respect to the Issuing Lender and the Swing Loan Lender (after giving effect to §§2.5(a), 2.10(a) and
2.13(c)) on terms satisfactory to the Issuing Lender and/or the Swing Loan Lender in its good faith determination (and such cash
collateral shall be in Dollars). Any such cash collateral shall be deposited in the Collateral Account as collateral (solely for
the benefit of the Issuing Lender and/or the Swing Loan Lender) for the payment and performance of each Defaulting Lender’s
pro rata portion in accordance with their respective Commitment Percentages of outstanding Letter of Credit Liabilities and Swing
Loans. Moneys in the Collateral Account deposited pursuant to this §2.13(e) shall be applied by the Agent to reimburse
the Issuing Lender and/or the Swing Loan Lender immediately for each Defaulting Lender’s pro rata portion in accordance with
their respective Commitment Percentages of any funding obligation with respect to a Letter of Credit or Swing Loan which has not
otherwise been reimbursed by the Borrower or such Defaulting Lender.

 

(f)          (i)          Each
Lender that is a Defaulting Lender shall not be entitled to receive any Unused Fee pursuant to §2.3 for any period during
which that Lender is a Defaulting Lender.

 

(ii)         Each
Lender that is a Defaulting Lender shall not be entitled to receive Letter of Credit fees pursuant to §2.10(e) for any
period during which that Lender is a Defaulting Lender.

 

(iii)        With
respect to any facility Unused Fee or Letter of Credit fees not required to be paid to any Defaulting Lender pursuant to clause
(i) or (ii) above, the Borrower shall (x) pay to each Non-Defaulting Lender that is a Lender that portion of any
such fee otherwise payable to such Defaulting Lender with respect to such Defaulting Lender’s participation in Letter of
Credit Liabilities or Swing Loans that has been reallocated to such Non-Defaulting Lender pursuant to §2.13(c), (y) pay to
the Issuing Lender and the Swing Loan Lender the amount of any such fee otherwise payable to such Defaulting Lender to the extent
allocable to the Issuing Lender’s or the Swing Loan Lender’s Fronting Exposure to such Defaulting Lender and (z) not
be required to pay any remaining amount of any such fee.

 

(g)          If
the Borrower (so long as no Default or Event of Default exists) and the Agent agree in writing in their sole discretion that a
Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Agent will so notify the parties hereto, whereupon
as of the date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect
to any cash collateral), that Lender will, to the extent applicable, purchase that portion of the outstanding Loans of the other
Lenders or take such other actions as the Agent may determine to be necessary to cause the Loans and funded and unfunded participations
in Letters of Credit and Swing Loans to be held on a pro rata basis by the Lenders in accordance with their Commitments (without
giving effect to §2.13(c)), whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments
will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while such Lender was
a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected
parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder
arising from such Lender’s having been a Defaulting Lender.

 

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§3.         REPAYMENT
OF THE LOANS.

 

§3.1       Stated
Maturity. The Borrower promises to pay on the Revolving Credit Maturity Date and there shall become absolutely due and payable
on the Revolving Credit Maturity Date all of the Revolving Credit Loans, Swing Loans and other Letter of Credit Liabilities Outstanding
on such date, together with any and all accrued and unpaid interest thereon.

 

§3.2        Mandatory
Prepayments.

 

(a)          If
at any time the sum of the aggregate outstanding principal amount of the Revolving Credit Loans, the Swing Loan and the Letter
of Credit Liabilities exceeds the lesser of (A) Total Commitment or (B) the Borrowing Base Availability, then the Borrower shall,
within five (5) Business Days of such occurrence, pay the amount of such excess to the Agent for the respective accounts of the
Lenders for application to the Loans as provided in §3.4, together with any additional amounts payable pursuant to §4.7,
except that the amount of any Swing Loans shall be paid solely to the Swing Loan Lender.

 

(b)          If
at any time (i) the sum of the aggregate outstanding principal amount of the Revolving Credit Loans, the Swing Loans and the Letter
of Credit Liabilities that are Tranche A Loans, Tranche B Loans or Tranche C Loans, respectively, exceeds the Tranche A Availability,
the Tranche B Availability or the Tranche C Availability, respectively, then the Borrower shall, within five (5) Business Days
of such occurrence, pay the amount of such excess to the Agent for the respective accounts of the Lenders for application to the
Loans and specifically, to the Tranche A Loans, the Tranche B Loans or Tranche C Loans, respectively as provided in §3.4,
together with any additional amounts payable pursuant to §4.7, except that the amount of any Swing Loans shall be paid solely
to the Swing Loan Lender.

 

(c)          In
the event there shall have occurred any Prepayment, Borrower shall, within two (2) Business Days of receipt of such payment, provide
written notice thereof to the Agent together with an updated Borrowing Base Certificate which gives effect to such Prepayment,
and if a prepayment of the Loans is required for Borrower to remain in compliance with §9.1, such notice shall be accompanied
by a principal prepayment of the Loans to Agent for the account of the Lenders for application to the Loans as provided in §3.4
in an amount so that no violation of the covenants in §3.2 or §9.1 shall occur, together with any additional amounts
payable pursuant to §4.7.

 

(d)          In
the event there shall have occurred a casualty or Taking with respect to any Borrowing Base Property and the Borrower or any Subsidiary
Guarantor is required to repay the Loans pursuant to §7.7, the Borrower shall prepay the Loans concurrently with the date
of receipt by Borrower, such Subsidiary Guarantor or the Agent of any Insurance Proceeds or Condemnation Proceeds in respect of
such casualty or Taking, as applicable, in the amount required pursuant to the relevant provisions of §7.7.

 

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§3.3        Optional
Prepayments.

 

(a)          The
Borrower shall have the right, at its election, to prepay the outstanding amount of the Revolving Credit Loans and Swing Loans,
as a whole or in part, at any time without penalty or premium; provided, that if any prepayment of the outstanding amount
of any LIBOR Rate Loans pursuant to this §3.3 is made on a date that is not the last day of the Interest Period relating thereto,
such prepayment shall be accompanied by the payment of any amounts due pursuant to §4.7.

 

(b)          The
Borrower shall give the Agent, no later than 12:00 noon (Cleveland time) at least three (3) days prior written notice of any prepayment
pursuant to this §3.3, in each case specifying the proposed date of prepayment of the Loans and the principal amount to be
prepaid and whether such prepayment is a prepayment of a Tranche A Loan, a Tranche B Loan or a Tranche C Loan (provided
that any such notice may be revoked or modified upon one (1) day’s prior notice to the Agent). Notwithstanding the foregoing,
no prior notice shall be required for the prepayment of any Swing Loan.

 

§3.4        Partial
Prepayments. Each partial prepayment of the Loans under §3.3 shall be in a minimum amount of $1,000,000.00 or an integral
multiple of $100,000.00 in excess thereof, shall be accompanied by the payment of accrued interest on the principal prepaid to
the date of payment. Each partial payment under §§3.2 and 3.3 shall be applied first to the principal of any Outstanding
Swing Loans, then, to the principal of Revolving Credit Loans (and with respect to each category of Loans, first to the principal
of Base Rate Loans, and then to the principal of LIBOR Rate Loans). Each partial prepayment under §3.2 and §3.3 shall,
unless otherwise specifically provided in this §3 be applied first to Tranche A Loans, then to Tranche B Loans and then to
Tranche C Loans.

 

§3.5        Effect
of Prepayments. Amounts of the Revolving Credit Loans prepaid under §§3.2 and 3.3 prior to the Revolving Credit Maturity
Date may be reborrowed as provided in (but subject to the terms of) §2.

 

§4.         CERTAIN
GENERAL PROVISIONS.

 

§4.1        Conversion
Options.

 

(a)          The
Borrower may elect from time to time to convert any of its outstanding Revolving Credit Loans to a Revolving Credit Loan of another
Type and such Revolving Credit Loans shall thereafter bear interest as a Base Rate Loan or a LIBOR Rate Loan, as applicable; provided
that (i) with respect to any such conversion of a LIBOR Rate Loan to a Base Rate Loan, the Borrower shall give the Agent at
least one (1) Business Day’s prior written notice of such election, and such conversion shall only be made on the last day
of the Interest Period with respect to such LIBOR Rate Loan; (ii) with respect to any such conversion of a Base Rate Loan
to a LIBOR Rate Loan, the Borrower shall give the Agent at least three (3) LIBOR Business Days’ prior written notice
of such election and the Interest Period requested for such Loan, the principal amount of the Loan so converted shall be in a minimum
aggregate amount of $1,000,000.00 or an integral multiple of $250,000.00 in excess thereof and, after giving effect to the making
of such Loan, there shall be no more than eight (8) LIBOR Rate Loans outstanding at any one time; and (iii) no Loan may be
converted into a LIBOR Rate Loan when any Default or Event of Default has occurred and is continuing. All or any part of the outstanding
Revolving Credit Loans of any Type may be converted as provided herein, provided that no partial conversion shall result
in a Base Rate Loan in a principal amount of less than $1,000,000.00 or an integral multiple of $250,000.00 or a LIBOR Rate Loan
in a principal amount of less than $1,000,000.00 or an integral multiple of $250,000.00. On the date on which such conversion is
being made, each Lender shall take such action as is necessary to transfer its Commitment Percentage of such Revolving Credit Loans
to its Domestic Lending Office or its LIBOR Lending Office, as the case may be. Each Conversion/Continuation Request relating to
the conversion of a Base Rate Loan to a LIBOR Rate Loan shall be irrevocable by the Borrower.

 

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(b)          Any
LIBOR Rate Loan may be continued as such Type upon the expiration of an Interest Period with respect thereto by compliance by the
Borrower with the terms of §4.1; provided that no LIBOR Rate Loan may be continued as such when any Default or Event
of Default has occurred and is continuing, but shall be automatically converted to a Base Rate Loan on the last day of the Interest
Period relating thereto ending during the continuance of any Default or Event of Default.

 

(c)          In
the event that the Borrower does not notify the Agent of its election hereunder with respect to any LIBOR Rate Loan, such Loan
shall, subject to compliance with the other terms of this Agreement, be automatically converted at the end of the applicable Interest
Period to a LIBOR Rate Loan with an Interest Period of one (1) month.

 

§4.2        Fees.
The Borrower agrees to pay to KeyBank, the Agent and KBCM for their own account certain fees for services rendered or to be rendered
in connection with the Loans as provided pursuant to a separate fee letter among the REIT, KeyBank and KBCM (the “Agreement
Regarding Fees”). Borrower hereby assumes all obligations of REIT under the Agreement Regarding Fees. All such fees shall
be fully earned when paid and nonrefundable under any circumstances.

 

§4.3        Funds
for Payments.

 

(a)          All
payments of principal, interest, facility fees, Letter of Credit fees, closing fees and any other amounts due hereunder or under
any of the other Loan Documents shall be made to the Agent, for the respective accounts of the Lenders and the Agent, as the case
may be, at the Agent’s Head Office, not later than 2:00 p.m. (Cleveland time) on the day when due, in each case in lawful
money of the United States in immediately available funds. The Agent is hereby authorized to charge the accounts of the Borrower
with KeyBank set forth on Schedule 4.3, on the dates when the amount thereof shall become due and payable, with the
amounts of the principal of and interest on the Loans and all fees, charges, expenses and other amounts owing to the Agent and/or
the Lenders (including the Swing Loan Lender) under the Loan Documents. Subject to the foregoing, all payments made to the Agent
on behalf of the Lenders, and actually received by the Agent, shall be deemed received by the Lenders on the date actually received
by the Agent.

 

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(b)          All
payments by the Borrower hereunder and under any of the other Loan Documents shall be made without setoff or counterclaim, and
free and clear of and without deduction or withholding for any Taxes, except as required by Applicable Law. If any Applicable Law
(as determined in the good faith discretion of an applicable Withholding Agent) requires the deduction or withholding of any Tax
from any such payment by a Withholding Agent, then the applicable Withholding Agent 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 the Borrower or other applicable Guarantor 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 §4.3) the applicable Recipient receives an amount equal to the sum it would
have received had no such deduction or withholding been made.

 

(c)          The
Borrower and the Guarantors shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the
option of the Agent timely reimburse it for the payment of, any Other Taxes.

 

(d)          The
Borrower and the Guarantors shall jointly and severally indemnify each Recipient, 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 §4.3) payable or paid by such Recipient or required to be withheld or deducted from a payment to such Recipient
and any 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. A certificate as to the amount of such payment or liability
delivered to the Borrower by a Lender (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Lender, shall
be conclusive absent manifest error; provided that the determinations in such statement are made on a reasonable basis and in good
faith.

 

(e)          Each
Lender shall severally indemnify the Agent, within ten (10) days after demand therefor, for (i) any Indemnified Taxes attributable
to such Lender (but only to the extent that the Borrower or a Guarantor has not already indemnified the Agent for such Indemnified
Taxes and without limiting the obligation of the Borrower and the Guarantors to do so), (ii) any Taxes attributable to such Lender’s
failure to comply with the provisions of §18.4 relating to the maintenance of a Participant Register and (iii) any Excluded
Taxes attributable to such Lender, in each case, that are payable or paid by the Agent in connection with any Loan Document, and
any reasonable expenses arising therefrom or with respect thereto, whether or not such 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 any
Lender by the Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Agent to set off and apply any
and all amounts at any time owing to such Lender under any Loan Document or otherwise payable by the Agent to the Lender from any
other source against any amount due to the Agent under this subsection.

 

(f)          As
soon as practicable after any payment of Taxes by the Borrower or any Guarantor to a Governmental Authority pursuant to this §4.3,
the Borrower or such Guarantor shall deliver to the Agent 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 Agent.

 

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(g)          (i)          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 the Borrower and the Agent, at the time or times reasonably requested by the Borrower or the Agent, such properly
completed and executed documentation reasonably requested by the Borrower or the Agent as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower or the
Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower or the Agent
as will enable the Borrower or the Agent 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 the immediately following clauses (ii)(A), (ii)(B)
and (ii)(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.

 

(ii)         Without
limiting the generality of the foregoing, in the event that the Borrower is a U.S. Person:

 

(A)         any
Lender that is a U.S. Person shall deliver to the Borrower and the Agent 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 the Borrower or the Agent), an electronic
copy (or an original if requested by the Borrower or the Agent) of an executed IRS Form W-9 (or any successor form) certifying
that such Lender is exempt from U.S. federal backup withholding tax;

 

(B)         any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agent (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 the Borrower or the Agent), whichever of the following is applicable:

 

(I)         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, an electronic copy (or an original if requested by the Borrower or the Agent)
of an executed IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. 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 or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business
profits” or “other income” article of such tax treaty;

 

(II)        an
electronic copy (or an original if requested by the Borrower or the Agent) of an executed IRS Form W-8ECI;

 

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(III)       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 L-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 the Borrower within the meaning
of Section 871(h)(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 W-8BEN-E; or

 

(IV)        to
the extent a Foreign Lender is not the beneficial owner, an electronic copy (or an original if requested by the Borrower or the
Agent) of an executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, a U.S. Tax Compliance Certificate
substantially in the form of Exhibit L-2 or Exhibit L-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 L-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 the Borrower and the Agent (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 the Borrower or the Agent), an electronic copy (or an original
if requested by the Borrower or the Agent) of any other form prescribed by Applicable Law as a basis for claiming exemption from
or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed
by Applicable Law to permit the Borrower or the Agent 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 U.S. 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 the Borrower and the Agent at the time or times prescribed by Applicable
Law and at such time or times reasonably requested by the Borrower or the Agent 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 the
Borrower or the Agent as may be necessary for the Borrower and the Agent 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 Agent and 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 the Borrower and the Agent in writing of its legal inability to do so. For purposes of this
Section (g), the term “Lender” shall include Agent.

 

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(h)          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 §4.3 (including by the payment of additional amounts pursuant to this §4.3), it
shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this
§4.3 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 subsection (plus any penalties, interest or other charges imposed by the relevant 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 subsection, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this
subsection 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 Tax subject to indemnification and giving rise to such refund has not been deducted, withheld or
otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This subsection
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 reasonably deems confidential) to the indemnifying party or any other Person.

 

(i)          Each
party’s obligations under this §4.3 shall survive the resignation or replacement of the Agent or any assignment of rights
by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations
under any Loan Document.

 

(j)          The
obligations of the Borrower to the Lenders under this Agreement with respect to Letters of Credit (and of the Lenders to make payments
to the Issuing Lender with respect to Letters of Credit and to the Swing Loan Lender with respect to Swing Loans) shall be absolute,
unconditional and irrevocable, and shall be paid and performed strictly in accordance with the terms of this Agreement, under all
circumstances whatsoever, including, without limitation, the following circumstances: (i) any lack of validity or enforceability
of this Agreement, any Letter of Credit or any of the other Loan Documents; (ii) any improper use which may be made of any
Letter of Credit or any improper acts or omissions of any beneficiary or transferee of any Letter of Credit in connection therewith;
(iii) the existence of any claim, set-off, defense or any right which the Borrower or any of its Subsidiaries or Affiliates
may have at any time against any beneficiary or any transferee of any Letter of Credit (or persons or entities for whom any such
beneficiary or any such transferee may be acting) or the Lenders (other than the defense of payment to the Lenders in accordance
with the terms of this Agreement) or any other person, whether in connection with any Letter of Credit, this Agreement, any other
Loan Document, or any unrelated transaction; (iv) any draft, demand, certificate, statement or any other documents presented
under any Letter of Credit proving to be insufficient, forged, fraudulent or invalid in any respect or any statement therein being
untrue or inaccurate in any respect whatsoever; (v) any breach of any agreement between the Borrower or any of its Subsidiaries
or Affiliates and any beneficiary or transferee of any Letter of Credit; (vi) any irregularity in the transaction with respect
to which any Letter of Credit is issued, including any fraud by the beneficiary or any transferee of such Letter of Credit; (vii) payment
by the Issuing Lender under any Letter of Credit against presentation of a sight draft, demand, certificate or other document which
does not comply with the terms of such Letter of Credit, provided that such payment shall not have constituted gross negligence
or willful misconduct on the part of the Issuing Lender as determined by a court of competent jurisdiction after the exhaustion
of all applicable appeal periods; (viii) any non-application or misapplication by the beneficiary of a Letter of Credit of
the proceeds of such Letter of Credit; (ix) the legality, validity, form, regularity or enforceability of the Letter of Credit;
(x) the failure of any payment by the Issuing Lender to conform to the terms of a Letter of Credit (if, in the Issuing Lender’s
good faith judgment, such payment is determined to be appropriate); (xi) the surrender or impairment of any security for the
performance or observance of any of the terms of any of the Loan Documents; (xii) the occurrence of any Default or Event of
Default; and (xiii) any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

 

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(k)          For
the purposes of this §4.3, the term “Lender” includes Issuing Lender and the term “Applicable Law”
includes FATCA.

 

§4.4        Computations.
All computations of interest on the Base Rate Loans to the extent applicable shall be based on a three hundred sixty-five (365)
or three hundred sixty-six (366)-day year, as applicable, and paid for the actual number of days elapsed. All other computations
of interest on the Loans and of other fees to the extent applicable shall be based on a 360-day year and paid for the actual number
of days elapsed. Except as otherwise provided in the definition of the term “Interest Period” with respect to LIBOR
Rate Loans, whenever a payment hereunder or under any of the other Loan Documents becomes due on a day that is not a Business Day,
the due date for such payment shall be extended to the next succeeding Business Day, and interest shall accrue during such extension.
The Outstanding Loans and Letter of Credit Liabilities as reflected on the records of the Agent from time to time shall be considered
prima facie evidence of such amount absent manifest error.

 

§4.5        Suspension
of LIBOR Rate Loans. In the event that, prior to the commencement of any Interest Period relating to any LIBOR Rate Loan, the
Agent shall determine that adequate and reasonable methods do not exist for ascertaining LIBOR for such Interest Period, or the
Agent shall reasonably determine that LIBOR will not accurately and fairly reflect the cost of the Lenders making or maintaining
LIBOR Rate Loans for such Interest Period, the Agent shall forthwith give notice of such determination (which shall be conclusive
and binding on the Borrower and the Lenders absent manifest error) to the Borrower and the Lenders. In such event (a) any
Loan Request with respect to a LIBOR Rate Loan shall be automatically withdrawn and shall be deemed a request for a Base Rate Loan
and (b) each LIBOR Rate Loan will automatically, on the last day of the then current Interest Period applicable thereto, become
a Base Rate Loan, and the obligations of the Lenders to make LIBOR Rate Loans shall be suspended until the Agent determines that
the circumstances giving rise to such suspension no longer exist, whereupon the Agent shall so notify the Borrower and the Lenders.

 

§4.6        Illegality.
Notwithstanding any other provisions herein, if any present or future law, regulation, treaty or directive or the interpretation
or application thereof shall make it unlawful, or any central bank or other Governmental Authority having jurisdiction over a Lender
or its LIBOR Lending Office shall assert that it is unlawful, for any Lender to make or maintain LIBOR Rate Loans, such Lender
shall forthwith give notice of such circumstances to the Agent and the Borrower and thereupon (a) the commitment of the Lenders
to make LIBOR Rate Loans shall forthwith be suspended and (b) the LIBOR Rate Loans then outstanding shall be converted automatically
to Base Rate Loans on the last day of each Interest Period applicable to such LIBOR Rate Loans or within such earlier period as
may be required by law. Notwithstanding the foregoing, before giving such notice, the applicable Lender shall designate a different
lending office if such designation will void the need for giving such notice and will not, in the judgment of such Lender, be otherwise
materially disadvantageous to such Lender or increase any costs payable by the Borrower hereunder.

 

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§4.7        Additional
Interest. If any LIBOR Rate Loan or any portion thereof is repaid or is converted to a Base Rate Loan for any reason on a date
which is prior to the last day of the Interest Period applicable to such LIBOR Rate Loan, or if repayment of the Loans has been
accelerated as provided in §12.1, or if the Borrower fails to draw down on the first day of the applicable Interest Period
any amount as to which the Borrower has elected a LIBOR Rate Loan, the Borrower will pay to the Agent upon demand for the account
of the applicable Lenders in accordance with their respective Commitment Percentages (or to the Swing Loan Lender with respect
to a Swing Loan), in addition to any amounts of interest otherwise payable hereunder, the Breakage Costs. The Borrower understands,
agrees and acknowledges the following: (a) no Lender has any obligation to purchase, sell and/or match funds in connection
with the use of LIBOR as a basis for calculating the rate of interest on a LIBOR Rate Loan; (b) LIBOR is used merely as a
reference in determining such rate; and (c) the Borrower has accepted LIBOR as a reasonable and fair basis for calculating
such rate and any Breakage Costs. The Borrower further agrees to pay the Breakage Costs, if any, whether or not a Lender elects
to purchase, sell and/or match funds.

 

§4.8        Additional
Costs, Etc. Notwithstanding anything herein to the contrary, if a change in Applicable Law shall occur after the date hereof,
which expression, as used herein, includes statutes, rules and regulations thereunder and interpretations thereof by any competent
court or by any governmental or other regulatory body or official charged with the administration or the interpretation thereof
and requests, directives, instructions and notices at any time (or from time to time) hereafter made upon or otherwise issued to
any Lender or the Agent by any central bank or other fiscal, monetary or other authority (whether or not having the force of law),
which change affects similarly situated banks or financial institutions generally and is not applicable to a Lender or Agent primarily
by reason of such Lender’s or Agent’s particular conduct or condition, and such change in Applicable Law shall:

 

(a)          subject
any Lender or the Agent to any tax, levy, impost, duty, charge, fee, deduction or withholding of any nature with respect to this
Agreement, the other Loan Documents, such Lender’s Commitment, a Letter of Credit or the Loans (other than for Indemnified
Taxes, Taxes described in clauses (b) through (d) of the definition of Excluded Taxes, and Connection Income Taxes), or

 

(b)          impose
on any Lender or Issuing Lender or the London interbank market any other condition, cost or expense (other than Taxes) affecting
this Agreement or Loans made by such Lender or any Letter of Credit or participation therein, or

 

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(c)          impose
or increase or render applicable any special deposit, compulsory loan, insurance charge, reserve, assessment, liquidity, capital
adequacy or other similar requirements (whether or not having the force of law and which are not already reflected in any amounts
payable by the Borrower hereunder) against assets held by, or deposits in or for the account of, or loans by, or commitments of
an office of any Lender,

 

and the result of any of the foregoing
is:

 

(i)          to
increase the cost to any Lender, of making, continuing, converting to, funding, issuing, renewing, extending or maintaining any
of the Loans, the Letters of Credit or such Lender’s Commitment, or

 

(ii)         to
reduce the amount of principal, interest or other amount payable to any Lender or the Agent hereunder on account of such Lender’s
Commitment or any of the Loans or the Letters of Credit, or

 

(iii)        to
require any Lender or the Agent to make any payment or to forego any interest or other sum payable hereunder, the amount of which
payment or foregone interest or other sum is calculated by reference to the gross amount of any sum receivable or deemed received
by such Lender or the Agent from the Borrower hereunder,

 

then, and in each such case, the Borrower
will, within fifteen (15) days of written demand made by such Lender or (as the case may be) the Agent at any time and from time
to time and as often as the occasion therefor may arise, pay to such Lender or the Agent such additional amounts as such Lender
or the Agent shall determine in good faith to be sufficient to compensate such Lender or the Agent for such additional cost, reduction,
payment or foregone interest or other sum. Each Lender and the Agent in determining such amounts may use any reasonable averaging
and attribution methods generally applied by such Lender or the Agent.

 

§4.9        Capital
Adequacy. If after the date hereof any Lender determines that (a) the adoption of or change in any Applicable Law regarding
liquidity or capital ratios or requirements for banks or bank holding companies or any change in the interpretation or application
thereof by any Governmental Authority charged with the administration thereof, which change affects similarly situated banks or
financial institutions generally and is not applicable to a Lender primarily by reason of such Lender’s particular conduct
or condition, or (b) compliance by such Lender or its parent bank holding company with any guideline, request or directive
of any such entity regarding liquidity or capital ratios or adequacy (whether or not having the force of law), has the effect of
reducing the return on such Lender’s or such holding company’s capital as a consequence of such Lender’s commitment
to make Loans or participate in Letters of Credit hereunder to a level below that which such Lender or holding company could have
achieved but for such adoption, change or compliance (taking into consideration such Lender’s or such holding company’s
then existing policies with respect to capital adequacy and assuming the full utilization of such entity’s capital) by any
amount deemed by such Lender to be material, then such Lender may notify the Borrower thereof. The Borrower agrees to pay to such
Lender the amount of such reduction in the return on capital as and when such reduction is determined, upon presentation by such
Lender of a statement of the amount setting forth the Lender’s calculation thereof. In determining such amount, such Lender
may use any reasonable averaging and attribution methods generally applied by such Lender. For purposes of §4.8 and this §4.9,
the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, publications, orders, guidelines and directives
thereunder or issued in connection therewith and 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 have been adopted and gone into effect after the
date hereof regardless of when adopted, enacted or issued.

 

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§4.10         Breakage
Costs. The Borrower shall pay all Breakage Costs required to be paid by it pursuant to this Agreement and incurred from time
to time by any Lender upon demand within fifteen (15) days from receipt of written notice from the Agent, or such earlier date
as may be required by this Agreement.

 

§4.11         Default
Interest; Late Charge. Following the occurrence and during the continuance of any Event of Default, and regardless of whether
or not the Agent or the Lenders shall have accelerated the maturity of the Loans, all Loans shall bear interest payable on demand
at a rate per annum equal to the sum of the Base Rate plus the Applicable Margin plus four percent (4%) (the “Default
Rate”), until such amount shall be paid in full (after as well as before judgment), and the fee payable with respect
to Letters of Credit shall be increased to a rate equal to four percent (4%) above the Letter of Credit fee that would otherwise
be applicable to such time, or if any of such amounts shall exceed the maximum rate permitted by law, then at the maximum rate
permitted by law. In addition, the Borrower shall pay a late charge equal to four percent (4%) of any amount of interest and/or
principal payable on the Loans or any other amounts payable hereunder or under the other Loan Documents, which is not paid by the
Borrower within ten (10) days of the date when due (or, in the case of amounts due at the Revolving Credit Maturity Date within
fifteen (15) Business Days of such date).

 

§4.12         Certificate.
A certificate setting forth any amounts payable pursuant to §4.7, §4.8, §4.9, §4.10 or §4.11 and a reasonably
detailed explanation of such amounts which are due, submitted by any Lender or the Agent to the Borrower, shall be conclusive in
the absence of manifest error, and shall be promptly provided to the Agent and the Borrower upon their written request.

 

§4.13         Limitation
on Interest. Notwithstanding anything in this Agreement or the other Loan Documents to the contrary, all agreements between
or among the Borrower, the Guarantors, the Lenders and the Agent, whether now existing or hereafter arising and whether written
or oral, are hereby limited so that in no contingency, whether by reason of acceleration of the maturity of any of the Obligations
or otherwise, shall the interest contracted for, charged or received by the Lenders exceed the maximum amount permissible under
Applicable Law. If, from any circumstance whatsoever, interest would otherwise be payable to the Lenders in excess of the maximum
lawful amount, the interest payable to the Lenders shall be reduced to the maximum amount permitted under Applicable Law; and if
from any circumstance the Lenders shall ever receive anything of value deemed interest by Applicable Law in excess of the maximum
lawful amount, an amount equal to any excessive interest shall be applied to the reduction of the principal balance of the Obligations
and to the payment of interest or, if such excessive interest exceeds the unpaid balance of principal of the Obligations, such
excess shall be refunded to the Borrower. All interest paid or agreed to be paid to the Lenders shall, to the extent permitted
by Applicable Law, be amortized, prorated, allocated and spread throughout the full period until payment in full of the principal
of the Obligations (including the period of any renewal or extension thereof) so that the interest thereon for such full period
shall not exceed the maximum amount permitted by Applicable Law. This §4.13 shall control all agreements between or among
the Borrower, the Guarantors, the Lenders and the Agent.

 

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§4.14         Certain
Provisions Relating to Increased Costs. If a Lender gives notice of the existence of the circumstances set forth in §4.8
or any Lender requests compensation for any losses or costs to be reimbursed pursuant to any one or more of the provisions of §4.3
(as a result of the imposition of Taxes on amounts paid to such Lender under this Agreement), §4.8 or §4.9, then, upon
request of the Borrower, such Lender, as applicable, shall use reasonable efforts in a manner consistent with such institution’s
practice in connection with loans like the Loan of such Lender to eliminate, mitigate or reduce amounts that would otherwise be
payable by the Borrower under the foregoing provisions, provided that such action would not be otherwise prejudicial to
such Lender, including, without limitation, by designating another of such Lender’s offices, branches or affiliates; the
Borrower agreeing to pay all reasonably incurred costs and expenses incurred by such Lender in connection with any such action.
Notwithstanding anything to the contrary contained herein, if no Default or Event of Default shall have occurred and be continuing,
and if any Lender has given notice of the existence of the circumstances set forth in §4.8 or has requested payment or compensation
for any losses or costs to be reimbursed pursuant to any one or more of the provisions of §4.3 (as a result of the imposition
of Taxes on amounts paid to such Lender under this Agreement), §4.8 or §4.9 and following the request of the Borrower
has been unable to take the steps described above to mitigate such amounts (each, an “Affected Lender”), then,
within thirty (30) days after such notice or request for payment or compensation, the Borrower shall have the one-time right as
to such Affected Lender, to be exercised by delivery of written notice delivered to the Agent and the Affected Lender within thirty
(30) days of receipt of such notice, to elect to cause the Affected Lender to transfer its Commitment, provided that the Borrower
shall pay to the Agent the assignment fee (if any) specified in §18.2, such assignment will result in a reduction in such
compensation or payments thereafter, and such assignment does not conflict with Applicable Law. The Agent shall promptly notify
the remaining Lenders that each of such Lenders shall have the right, but not the obligation, to acquire a portion of the Commitment,
pro rata based upon their relevant Commitment Percentages, of the Affected Lender (or if any of such Lenders does not elect to
purchase its pro rata share, then to such remaining Lenders in such proportion as approved by the Agent). In the event that the
Lenders do not elect to acquire all of the Affected Lender’s Commitment, then the Agent shall endeavor to obtain a new Lender
to acquire such remaining Commitment. Upon any such purchase of the Commitment of the Affected Lender, the Affected Lender’s
interest in the Obligations and its rights hereunder and under the Loan Documents shall terminate at the date of purchase, and
the Affected Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest. The purchase
price for the Affected Lender’s Commitment shall equal any and all amounts outstanding and owed by the Borrower to the Affected
Lender including principal, prepayment premium or fee, and all accrued and unpaid interest or fees.

 

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§4.15      Successor
LIBOR Rate Index.

 

(a)          If
the Agent determines (which determination shall be final and conclusive, absent manifest error) that either (a) (i) the circumstances
set forth in §4.5 have arisen and are unlikely to be temporary, or (ii) the circumstances set forth in §4.5 have not
arisen but the applicable supervisor or administrator (if any) of LIBOR or a Governmental Authority having jurisdiction over the
Agent has made a public statement identifying the specific date after which LIBOR shall no longer be used for determining interest
rates for loans (either such date, a “LIBOR Termination Date”), or (b) a rate other than LIBOR has become a widely
recognized benchmark rate for newly originated floating rate commercial real estate loans in Dollars in the U.S. market, then the
Agent and Borrower may endeavor to establish a replacement index for LIBOR, and make adjustments to applicable margins and related
amendments to this Agreement as referred to below such that, to the extent practicable, the all-in interest rate based on the replacement
index will be substantially equivalent to the all-in LIBOR based interest rate in effect prior to its replacement. Notwithstanding
the foregoing or anything to the contrary contained herein, if (i) Borrower, in the exercise of its reasonable judgment, does not
agree to the replacement index as notified by Agent to Borrower or (ii) Agent and Borrower cannot reasonably agree on an alternate
rate, then in either such case, Borrower shall have the option to repay the debt in full, without any prepayment penalty.

 

(b)          Upon
the establishment of a replacement index in accordance with clause (a) above, the Agent, the Borrower and the Guarantors shall
enter into an amendment to this Agreement to reflect the replacement index, the adjusted margins and such other related amendments
as may be appropriate, in the discretion of the Agent, for the implementation and administration of the replacement index-based
rate. Notwithstanding anything to the contrary in this Agreement or the other Loan Documents (including, without limitation, §27),
such amendment shall become effective without any further action or consent of any other party to this Agreement at 5:00 p.m. (Cleveland,
Ohio time) on the tenth (10th) Business Day after the date a draft of the amendment is provided to the Lenders, unless the Agent
receives, on or before such tenth (10th) Business Day, a written notice from the Required Lenders stating that such Lenders object
to such amendment.

 

(c)          Selection
of the replacement index, adjustments to the applicable margins, and amendments to this Agreement (i) will be determined with due
consideration to the then-current market practices for determining and implementing a rate of interest for newly originated floating
rate commercial real estate loans in the United States and loans converted from a LIBOR based rate to a replacement index-based
rate, and (ii) may also reflect adjustments to account for (x) the effects of the transition from LIBOR to the replacement index
and (y) yield or risk-based differences between LIBOR and the replacement index.

 

(d)          Until
an amendment reflecting a new replacement index in accordance with this §4.15 is effective, each advance, conversion and renewal
of a LIBOR Rate Loan will continue to bear interest with reference to LIBOR; provided however, that if the Agent determines (which
determination shall be final and conclusive, absent manifest error) that a LIBOR Termination Date has occurred, then following
the LIBOR Termination Date, all LIBOR Rate Loans shall automatically be converted to Base Rate Loans until such time as an amendment
reflecting a replacement index and related matters as described above is implemented.

 

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(e)          Notwithstanding
anything to the contrary contained herein, if at any time the replacement index is less than zero, at such times, such index shall
be deemed to be zero for purposes of this Agreement.

 

§5.         COLLATERAL
SECURITY; GUARANTORS.

 

§5.1       Collateral.
The Obligations shall be secured by a perfected first priority lien and security interest to be held by the Agent for the benefit
of the Lenders on the Collateral, pursuant to the terms of the Security Documents.

 

§5.2       Appraisal.

 

(a)          The
Agent may obtain new Appraisals or an update to existing Appraisals with respect to the Borrowing Base Properties, or any of them,
as the Agent shall determine (i) at any time that the regulatory requirements of any Lender generally applicable to real estate
loans of the category made under this Agreement as reasonably interpreted by such Lender shall require more frequent Appraisals,
(ii) at any time following a Default or an Event of Default, (iii) if the Agent reasonably believes that there has been
a casualty, Taking or material diminution in the market value of any Borrowing Base Property, (iv) at any time that the Agent or
the Required Lenders determine that a more updated Appraisal is required by Applicable Law, (v) in connection with Borrower’s
exercise of the option to extend the Revolving Credit Maturity Date as provided in §2.12, (vi) at any time requested by the
Agent or the Required Lenders in accordance with the definition of Real Estate Asset Fair Value, or (vii) at any time as requested
by Agent or the Required Lenders (but not, pursuant to this clause (vii), more frequently than once every twelve months for any
Borrowing Base Property. The expense of such Appraisals and/or updates performed pursuant to this §5.2(a) shall be borne
by the Borrower and payable to the Agent within ten (10) days of demand; provided the Borrower shall not be obligated to
pay for an Appraisal of a Borrowing Base Property obtained pursuant to this §5.2(a) more often than once in any period
of twelve (12) months if no Event of Default exists.

 

(b)          In
the event that the Agent determines that a Borrowing Base Loan has been or is likely to be included in the calculation of Borrowing
Base Availability for more than eighteen (18) months, the Agent may obtain an Appraisal with respect to the underlying real estate
securing such Borrowing Base Loan for those properties described in the definition of Real Estate Asset Fair Value. The expense
of such Appraisals performed pursuant to this §5.2(b) shall be borne by the Borrower and payable to the Agent within ten (10)
days of demand.

 

(c)          The
Borrower acknowledges that the Agent has the right to reasonably approve any Appraisal performed pursuant to this Agreement. The
Borrower further agrees that the Lenders and the Agent do not make any representations or warranties with respect to any such Appraisal
and shall have no liability as a result of or in connection with any such Appraisal for statements contained in such Appraisal,
including without limitation, the accuracy and completeness of information, estimates, conclusions and opinions contained in such
Appraisal, or variance of such Appraisal from the fair value of such property that is the subject of such Appraisal given by the
local tax assessor’s office, or the Borrower’s idea of the value of such property.

 

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§5.3        Addition
of Borrowing Base Assets. Provided no Event of Default exists, the Borrower shall have the right, subject to the consent of
the Agent and the Required Lenders (which consent may be withheld in their reasonable discretion) and the satisfaction by the Borrower
of the conditions set forth in this §5.3, to add Potential Borrowing Base Assets to the Borrowing Base Availability. In the
event the Borrower desires to add an additional Potential Borrowing Base Asset to the Borrowing Base Availability as aforesaid,
the Borrower shall provide written notice to the Agent of such request. The Agent and the Required Lenders shall have ten (10)
Business Days following receipt of all items required under this Agreement to add such Eligible Real Estate as a Borrowing Base
Property or a Mortgage Loan as a Borrowing Base Loan to grant or deny approval for such proposed Potential Borrowing Base Asset.
If a Lender shall fail to respond to Agent within such ten (10) Business Day period, such Lender shall be deemed to have approved
such proposed potential Borrowing Base Asset as Collateral. Notwithstanding the foregoing, no Potential Borrowing Base Asset shall
be included in the calculation of the Borrowing Base Availability unless and until the following conditions precedent shall have
been satisfied as determined by Agent (and as required by this Agreement, the Required Lenders):

 

(a)          if
such Potential Borrowing Base Asset is to be a Borrowing Base Property, such Potential Borrowing Base Property shall be Eligible
Real Estate;

 

(b)          if
such Potential Borrowing Base Asset is to be a Borrowing Base Loan, such Borrowing Base Loan shall be secured by Eligible Real
Estate and Borrower or a Wholly-Owned Subsidiary of Borrower shall own all right, title and interest in such loan, and no interest
in such loan shall be subject to a participation;

 

(c)          if
such Potential Borrowing Base Asset is owned by a Wholly-Owned Subsidiary of the Borrower, said Wholly-Owned Subsidiary shall have
executed a Joinder Agreement and satisfied the conditions of §5.5;

 

(d)          prior
to or contemporaneously with such addition, the Borrower shall have submitted to the Agent a Compliance Certificate prepared using
the financial statements of the Borrower most recently provided or required to be provided to the Agent under §6.4 or §7.4
and a Borrowing Base Certificate, both prepared on a pro forma basis and adjusted to give effect to such addition, and shall certify
that after giving effect to such addition, no Default or Event of Default shall exist;

 

(e)          the
Borrower or the Wholly-Owned Subsidiary which is the owner of the Potential Borrowing Base Asset shall have executed and delivered
to the Agent all applicable Borrowing Base Qualification Documents, all of which instruments, documents or agreements shall be
in form and substance reasonably satisfactory to the Agent; and

 

(f)          after
giving effect to the inclusion of such Potential Borrowing Base Asset, each of the representations and warranties made by or on
behalf of the Borrower or the Guarantors or any of their respective Subsidiaries contained in this Agreement, the other Loan Documents
or in any document or instrument delivered pursuant to or in connection with this Agreement shall be true in all material respects
both as of the date as of which it was made and shall also be true as of the time of the addition of a Borrowing Base Asset in
the calculation of the Borrowing Base Availability, with the same effect as if made at and as of that time, except to the extent
of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed that any representation
or warranty which by its terms is made as of a specified date shall be required to be true and correct only as of such specified
date), and no Default or Event of Default shall have occurred and be continuing, and the Agent shall have received a certificate
of the Borrower to such effect;

 

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(g)          the
terms and conditions of §7.19 shall be satisfied; and

 

(h)          the
Agent and the Required Lenders, shall have consented to the inclusion of such Real Estate or Mortgage Loan as a Borrowing Base
Asset, which consent may be granted in the Agent’s and the Required Lenders’ reasonable discretion.

 

§5.4        Release
of Borrowing Base Assets. Provided no Default or Event of Default shall have occurred hereunder and be continuing (or would
exist immediately after giving effect to the transactions contemplated by this §5.4 other than an Event of Default that would
be cured by effectuating such release as provided in §12.2(b)), the Agent shall release a Borrowing Base Asset from the lien
or security title of the Security Documents encumbering the same upon the request of the Borrower subject to and upon the following
terms and conditions:

 

(a)          the
Borrower shall deliver to the Agent written notice of its desire to obtain such release no later than ten (10) days prior to the
date on which such release is to be effected;

 

(b)          the
Borrower shall submit to the Agent with such request a Compliance Certificate and Borrowing Base Certificate prepared using the
financial statements of the Borrower most recently provided or required to be provided to the Agent under §6.4 or §7.4
adjusted in the best good faith estimate of the Borrower to give effect to the proposed release and demonstrating that no Default
or Event of Default with respect to the covenants referred to therein shall exist after giving effect to such release;

 

(c)          all
release documents to be executed by the Agent shall be in form and substance reasonably satisfactory to the Agent;

 

(d)          the
Borrower shall pay all reasonable out-of-pocket costs and expenses of the Agent in connection with such release, including without
limitation, reasonable attorney’s fees;

 

(e)          the
Borrower shall pay to the Agent for the account of the Lenders a release price, if applicable, which payment shall be applied to
reduce the outstanding principal balance of the Loans as provided in §3.4, in an amount equal to the amount necessary to reduce
the outstanding principal balance of the Loans so that no violation of the covenants set forth in §§3.2 or 9.1 shall
occur without regard to any cure or grace period (it being understood that a paydown may not be necessary if the aforesaid covenants
are not violated following such release); and

 

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(f)          without
limiting or affecting any other provision hereof, any release of a Borrowing Base Asset will not cause the Borrower to be in violation
of the restrictions set forth in the definition of Borrowing Base Availability or the covenants set forth in this Agreement.

 

Notwithstanding the foregoing,
in the event that any Borrowing Base Property is to be released from a Mortgage, Agent may condition such release upon (x) the
increase of the coverages under the Title Policies for the remaining Borrowing Base Properties subject to Mortgages to 110% of
the Borrowing Base Availability attributed to such remaining Borrowing Base Properties, and (y) the Borrower paying to the Agent
or the Person entitled thereto any mortgage, recording, intangible, documentary stamp or other similar taxes and charges which
the Agent reasonably determines to be payable with respect to the remaining Borrowing Base Properties subject to Mortgages as a
result of such release to any state or any county or municipality thereof in which any of the Borrowing Base Properties subject
to a Mortgage is located, and the Borrower delivering to the Agent such affidavits or other information which the Agent reasonably
determines to be necessary in connection with such payment in order to insure that the Mortgages on the Borrowing Base Properties
located in such state secure the Borrower’s obligation with respect to the Obligations.

 

§5.5       Additional
Guarantors. In the event that the Borrower shall request that certain Real Estate or a Borrowing Base Loan of a Wholly-Owned
Subsidiary of the Borrower be included as a Borrowing Base Asset as contemplated by §5.3 and such Real Estate or a Borrowing
Base Loan is included as a Borrowing Base Asset in accordance with the terms hereof, the Borrower shall, as a condition to such
Real Estate or a Borrowing Base Loan being included as a Borrowing Base Asset, cause each such Wholly-Owned Subsidiary, and any
other Subsidiary of Borrower which owns an interest in such Wholly-Owned Subsidiary, to execute and deliver to the Agent a Joinder
Agreement, and such Subsidiary or Subsidiaries, as applicable, shall become a Guarantor hereunder and thereunder. Each such Subsidiary
shall be specifically authorized, in accordance with its respective organizational documents, to be a Guarantor hereunder and thereunder
and to execute the Contribution Agreement, the Guaranty, the Indemnity Agreement and such Security Documents as the Agent may require.
The Borrower shall further cause all representations, covenants and agreements in the Loan Documents with respect to the Guarantors
to be true and correct with respect to each such Subsidiary. In connection with the delivery of such Joinder Agreement, the Borrower
shall deliver to the Agent such organizational agreements, resolutions, consents, opinions and other documents and instruments
as the Agent may reasonably require.

 

§5.6       Release
of Certain Guarantors. Provided no Default or Event of Default shall have occurred and be continuing (or would exist immediately
after giving effect to the transactions contemplated by this §5.6(a)), in the event that all Borrowing Base Assets owned directly
or indirectly by a Subsidiary Guarantor have been removed from the calculation of Borrowing Base Availability in accordance with
this Agreement and shall have been released as Collateral for the Obligations and Hedge Obligations in accordance with the terms
of this Agreement, then such Subsidiary Guarantor shall be released by Agent from liability under this Agreement and the Guaranty.
The provisions of this §5.6 shall not apply to Borrower or REIT.

 

§5.7        Release
of Collateral. Upon the refinancing or repayment of the Obligations in full and termination of the obligation to provide additional
Loans or issue Letters of Credit to Borrower, then the Agent shall release the Collateral from the lien and security interest of
the Security Documents and to release the Borrower and Guarantors (other than with respect to obligations that survive termination
of this Agreement), provided that Agent has not received a written notice from the Representative or the holder of the Hedge Obligations
that any Hedge Obligation is then due and payable to the holder thereof.

 

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§6.         REPRESENTATIONS
AND WARRANTIES.

 

The Borrower represents
and warrants to the Agent and the Lenders as follows.

 

§6.1        Corporate
Authority, Etc. 

 

(a)          Incorporation;
Good Standing. REIT is a Maryland corporation duly organized pursuant to articles of incorporation (as amended and restated)
filed with the Maryland Secretary of State, and is validly existing and in good standing under the laws of Maryland. REIT conducts
its business in a manner which enables it to qualify as a real estate investment trust under, and to be entitled to the benefits
of, Section 856 of the Code, and has elected to be treated as and is entitled to the benefits of taxation as a real estate
investment trust thereunder. The Borrower is a Delaware limited liability company duly organized pursuant to its certificate of
limited liability company filed with the Delaware Secretary of State, and is validly existing and in good standing under the laws
of Delaware. The Borrower (i) has all requisite power to own its property and conduct its business as now conducted and as
presently contemplated, and (ii) is in good standing and is duly authorized to do business in the jurisdiction of its organization
and where a Borrowing Base Property owned by it or the property subject to a Borrowing Base Loan owned by it is located (to the
extent required by Applicable Law) and in each other jurisdiction where a failure to be so qualified in such other jurisdiction
could have a Material Adverse Effect.

 

(b)          Subsidiaries.
Each of the Guarantors and each of the Subsidiaries of the Borrower and the Guarantors (i) is a corporation, limited partnership,
general partnership, limited liability company or trust duly organized under the laws of its State of organization and is validly
existing and in good standing under the laws thereof, (ii) has all requisite power to own its property and conduct its business
as now conducted and as presently contemplated and (iii) is in good standing and is duly authorized to do business in each
jurisdiction where it is organized and where a Borrowing Base Property owned by it or the property subject to a Borrowing Base
Loan owned by it is located (to the extent required by Applicable Law) and in each other jurisdiction where a failure to be so
qualified could reasonably be expected to have a Material Adverse Effect.

 

(c)          Authorization.
The execution, delivery and performance of this Agreement and the other Loan Documents to which any of the Borrower or any Guarantor
is a party and the transactions contemplated hereby and thereby (i) are within the authority of such Person, (ii) have
been duly authorized by all necessary proceedings on the part of such Person, (iii) do not and will not conflict with or result
in any breach or contravention of any provision of law, statute, rule or regulation to which such Person is subject or any judgment,
order, writ, injunction, license or permit applicable to such Person, (iv) do not and will not conflict with or constitute
a default (whether with the passage of time or the giving of notice, or both) under any provision of the partnership agreement,
operating agreement, articles of incorporation or other charter documents or bylaws of, or any agreement or other instrument binding
upon, such Person or any of its properties, (v) do not and will not result in or require the imposition of any lien or other
encumbrance on any of the properties, assets or rights of such Person other than the liens and encumbrances in favor of the Agent
contemplated by this Agreement and the other Loan Documents, and (vi) do not require the approval or consent of any Person
other than those already obtained and delivered to the Agent.

 

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(d)          Enforceability.
This Agreement and the other Loan Documents to which any of the Borrower or any Guarantor is a party are valid and legally binding
obligations of such Person enforceable in accordance with the respective terms and provisions hereof and thereof, except as enforceability
is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement
of creditors’ rights and general principles of equity, regardless of whether such enforceability is considered in a proceeding
in equity or at law.

 

§6.2       Governmental
Approvals. The execution, delivery and performance of this Agreement and the other Loan Documents to which the Borrower or
any Guarantor is a party and the transactions contemplated hereby and thereby do not require the approval or consent of, or filing
or registration with, or the giving of any notice to, any court, department, board, governmental agency or authority other than
those already obtained, the filing of the Security Documents in the appropriate records office with respect thereto, and filings
after the date hereof of disclosures with the SEC.

 

§6.3       Title
to Properties. Except as indicated on Schedule 6.3 hereto, REIT and its Subsidiaries own or lease all of the assets
reflected in the consolidated balance sheet of the REIT as of the Balance Sheet Date or acquired or leased since that date (except
property and assets sold or otherwise disposed of in the ordinary course of business since that date) subject to no rights of others,
including any mortgages, leases pursuant to which REIT or any of its Subsidiaries or any of their respective Affiliates is the
lessee, conditional sales agreements, title retention agreements, liens or other encumbrances except Permitted Liens.

 

§6.4        Financial
Statements. The Borrower has furnished to the Agent: (a) the consolidated balance sheet of REIT and its Subsidiaries as
of the Balance Sheet Date and the related consolidated statement of income and cash flow as of the Balance Sheet Date certified
by the chief financial officer of REIT, (b) an unaudited statement of Property NOI for the period ending September 30, 2018,
reasonably satisfactory in form to the Agent and certified by the chief financial officer of REIT as fairly presenting the Property
NOI for such periods, and (c) certain other financial information relating to the Borrower, the Guarantors and the Borrowing
Base Assets. The balance sheet and statements referred to in clause (a)  above have been prepared in accordance with GAAP
and fairly present the consolidated financial condition of REIT and its Subsidiaries as of such dates and the consolidated results
of the operations of REIT and its Subsidiaries for such periods, except as otherwise expressly noted therein. The statements of
Property NOI are accurate in all material respects. There are no liabilities, contingent or otherwise, of REIT or any of its Subsidiaries
involving material amounts not disclosed in said financial statements and the related notes thereto.

 

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§6.5           No
Material Changes. Since the Balance Sheet Date, there has occurred no materially adverse change in the financial condition,
prospects, operations, assets or business of REIT and its Subsidiaries taken as a whole as shown on or reflected in the consolidated
balance sheet of REIT as of the Balance Sheet Date, or its consolidated statement of income or cash flows as of the Balance Sheet
Date, other than changes in the ordinary course of business that have not and could not reasonably be expected to have a Material
Adverse Effect. As of Closing Date, except as set forth on Schedule 6.5 hereto, there has occurred no materially adverse
change in the financial condition, prospects, operations, assets or business activities of REIT, its Subsidiaries or any of the
Borrowing Base Assets from the condition shown on the financial statements delivered to the Agent pursuant to §6.4 other than
changes in the ordinary course of business that have not had any materially adverse effect either individually or in the aggregate
on the business, prospects, operations, assets or financial condition of REIT and its Subsidiaries, considered as a whole, or of
any of the Borrowing Base Assets.

 

§6.6           Franchises,
Patents, Copyrights, Etc.. The Borrower, the Guarantors and their respective Subsidiaries possess all franchises, patents,
copyrights, trademarks, trade names, service marks, licenses and permits, and rights in respect of the foregoing, adequate for
the conduct of their business substantially as now conducted without known conflict with any rights of others except for any defects
of title or infringement that, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse
Effect. Except as set forth on Schedule 6.6 hereto, none of the Borrowing Base Assets is owned or operated by the Borrower
or its Subsidiaries under or by reference to any trademark, trade name, service mark or logo, and none of the trademarks, tradenames,
service marks or logos are registered or subject to any license or provision of law limiting their assignability or use except
as specifically set forth on Schedule 6.6.

 

§6.7           Litigation.
Except as stated on Schedule 6.7, there are no actions, suits, proceedings or investigations of any kind pending or
to the knowledge of the Borrower threatened against the Borrower, any Guarantor or any of their respective Subsidiaries before
any court, tribunal, arbitrator, mediator or administrative agency or board which question the validity of this Agreement or any
of the other Loan Documents, any action taken or to be taken pursuant hereto or thereto, the Collateral or any lien, security title
or security interest created or intended to be created pursuant hereto or thereto, or as to which there is a reasonable possibility
of an adverse determination, and that if adversely determined could reasonably be expected to have a Material Adverse Effect. Except
as set forth on Schedule 6.7, as of the Closing Date there are no judgments, final orders or awards outstanding against
or affecting the Borrower, any Guarantor, any of their respective Subsidiaries or any Collateral. No injunction, writ, temporary
restraining order or any order of any nature has been issued by any court or other Governmental Authority purporting to enjoin
or restrain the execution, delivery or performance of this Agreement or any other Loan Document, or directing that the transactions
provided for herein or therein not be consummated as herein or therein provided.

 

§6.8           No
Material Adverse Contracts, Etc.. None of the Borrower, any Guarantor or any of their respective Subsidiaries is subject to
any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation that has or is expected in
the future to have a Material Adverse Effect. None of the Borrower, any Guarantor or any of their respective Subsidiaries is a
party to any contract or agreement that has or could reasonably be expected to have a Material Adverse Effect.

 

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§6.9       Compliance
with Other Instruments, Laws, Etc.. None of the Borrower, any Guarantor or any of their respective Subsidiaries is in violation
of any provision of its charter or other organizational documents, bylaws, or any agreement or instrument to which it is subject
or by which it or any of its properties is bound or any decree, order, judgment, statute, license, rule or regulation, in any of
the foregoing cases in a manner that has had or could reasonably be expected to have a Material Adverse Effect.

 

§6.10     Tax
Status. Each of the Borrower, the Guarantors and their respective Subsidiaries (a) has made or filed all federal and state
income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject or has obtained
an extension for filing, (b) has paid prior to delinquency all taxes and other governmental assessments and charges shown
or determined to be due on such returns, reports and declarations, except those which are being contested in good faith and by
appropriate proceedings as permitted by this Agreement, and (c) has set aside on its books provisions reasonably adequate
for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. Except
as set forth on Schedule 6.10, there are no unpaid taxes in any material amount claimed to be due by the taxing authority
of any jurisdiction, and the officers or partners of such Person know of no basis for any such claim. Except as set forth on Schedule 6.10,
there are no audits pending or to the knowledge of the Borrower threatened with respect to any tax returns filed by the Borrower,
any Guarantor or their respective Subsidiaries. The taxpayer identification number for REIT is 47-1978772, and the taxpayer identification
number for the Borrower is 47-3530766.

 

§6.11     No
Event of Default. No Default or Event of Default has occurred and is continuing under this Agreement, or, as of the date of
this Agreement, the Existing Credit Agreement.

 

§6.12     Investment
Company Act. None of the Borrower, the Guarantors or any of their respective Subsidiaries is an “investment company”,
or an “affiliated company” or a “principal underwriter” of an “investment company”, as such
terms are defined in the Investment Company Act of 1940.

 

§6.13     Setoff;
Absence of UCC Financing Statements. 

 

(a)          The
Collateral and the rights of the Agent and the Lenders with respect to the Collateral are not subject to any setoff, claims (except
for Liens with respect thereto permitted by §8.2), withholdings or other defenses by REIT, the Borrower or any of their Subsidiaries
or, to the actual knowledge of the Borrower, any other Person.

 

(b)          Except
with respect to Liens with respect to such Person permitted by §8.2 or as disclosed on the lien search reports delivered to
and approved by the Agent, there is no financing statement (but excluding any financing statements that may be filed against Borrower
or any Guarantor without either of their consent or agreement of such Persons), security agreement, chattel mortgage, real estate
mortgage or other document filed or recorded with any applicable filing records, registry, or other public office, that purports
to cover, affect or give notice of any present or possible future lien on, or security interest or security title in, any property
of Borrower or any Guarantor or rights thereunder.

 

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§6.14     Certain
Transactions. Except as disclosed on Schedule 6.14 hereto, none of the partners, officers, trustees, managers,
members, directors, or employees of the Borrower, any Guarantor or any of their respective Subsidiaries is, nor shall any such
Person become, a party to any material transaction with the Borrower, any Guarantor or any of their respective Subsidiaries or
Affiliates (other than for services as partners, managers, members, employees, officers and directors), including any material
agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property
to or from, or otherwise requiring payments to or from any partner, officer, trustee, director or such employee or, to the knowledge
of the Borrower, any corporation, partnership, trust or other entity in which any partner, officer, trustee, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner, which are on terms less favorable to the Borrower,
a Guarantor or any of their respective Subsidiaries than those that would be obtained in a comparable arms-length transaction.

 

§6.15     Employee
Benefit Plans. The Borrower, each Guarantor and each ERISA Affiliate has fulfilled its obligation, if any, under the minimum
funding standards of ERISA and the Code with respect to each Multiemployer Plan or Guaranteed Pension Plan and is in compliance
in all material respects with the presently applicable provisions of ERISA and the Code with respect to each Employee Benefit Plan,
Multiemployer Plan or Guaranteed Pension Plan. Neither the Borrower, any Guarantor nor any ERISA Affiliate has (a) sought
a waiver of the minimum funding standard under Section 412 of the Code in respect of any Multiemployer Plan or Guaranteed
Pension Plan, (b) failed to make any contribution or payment to any Employee Benefit Plan, Multiemployer Plan or Guaranteed
Pension Plan, or made any amendment to any Employee Benefit Plan, Multiemployer Plan or Guaranteed Pension Plan, which has resulted
or could result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Code, or (c) incurred
any material liability under Title IV of ERISA to the PBGC or as a result of the violation of any provision of Title IV of ERISA,
other than a liability to the PBGC for premiums under Section 4007 of ERISA. None of the assets of REIT or any of its Subsidiaries,
including, without limitation, any Borrowing Base Asset, constitutes Plan Assets of any Employee Plan, Multiemployer Plan or Guaranteed
Pension Plan.

 

§6.16     Disclosure.
All of the representations and warranties made by or on behalf of the Borrower, the Guarantors and their respective Subsidiaries
in this Agreement and the other Loan Documents or any document or instrument delivered to the Agent or the Lenders pursuant to
or in connection with any of such Loan Documents are true and correct in all material respects, and neither the Borrower nor any
Guarantor has failed to disclose such information as is necessary to make such representations and warranties not misleading. All
information contained in this Agreement, the other Loan Documents or prepared by or on behalf of the Borrower, any Subsidiary or
any Guarantor and otherwise furnished to or made available to the Agent or the Lenders by or on behalf of the Borrower, any Subsidiary
or any Guarantor, as supplemented to date, is and, when delivered, will be true and correct in all material respects and, as supplemented
to date, does not, and when delivered will not, contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements contained therein not misleading. The written information, reports and other papers and data with
respect to the Borrower, any Subsidiary, any Guarantor, the Collateral and the Borrowing Base Assets (other than projections and
estimates) prepared by or on behalf of the Borrower, a Subsidiary or a Guarantor and furnished to the Agent or the Lenders in connection
with this Agreement or the obtaining of the Commitments of the Lenders hereunder was, at the time so furnished, complete and correct
in all material respects, or has been subsequently supplemented by other written information, reports or other papers or data,
to the extent necessary to give in all material respects a true and accurate knowledge of the subject matter in all material respects;
provided that such representation shall not apply to (a) the accuracy of any appraisal, title commitment, survey, or
engineering and environmental reports prepared by third parties or legal conclusions or analysis provided by the Borrower’s
or the Guarantors’ counsel (although the Borrower and the Guarantors have no reason to believe that the Agent and the Lenders
may not rely on the accuracy thereof) or (b) budgets, projections and other forward-looking speculative information prepared
in good faith by the Borrower (except to the extent the related assumptions were when made manifestly unreasonable).

 

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§6.17     Trade
Name; Place of Business. Neither the Borrower nor any Guarantor uses any trade name and conducts business under any name other
than its actual name set forth in the Loan Documents. The principal place of business of the Borrower is 6410 Poplar Avenue Suite
650, Memphis, Tennessee 38119.

 

§6.18     Regulations
T, U and X. No portion of any Loan is to be used for the purpose of purchasing or carrying any “margin security”
or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the Federal Reserve
System, 12 C.F.R. Parts 220, 221 and 224. Neither the Borrower nor any Guarantor 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
security” or “margin stock” as such terms are used in Regulations T, U and X of the Board of Governors of the
Federal Reserve System, 12 C.F.R. Parts 220, 221 and 224.

 

§6.19     Environmental
Compliance. Except as set forth in the written environmental site assessment reports delivered to and approved by the Agent
in connection with the addition of each Borrowing Base Property (the “Environmental Reports”) or as disclosed
on Schedule 6.19 attached hereto, the Borrower makes the following representations and warranties:

 

(a)          None
of the Borrower, the Guarantors or their respective Subsidiaries, any Manager of the Real Estate, nor any tenant or operations
thereon, is in violation, or alleged violation, of any judgment, decree, order, law, license, rule or regulation pertaining to
environmental matters, including without limitation, those arising under any Environmental Law, which violation (i) involves
Real Estate (other than the Borrowing Base Properties) and has had or could reasonably be expected to have a Material Adverse Effect
or (ii) involves a Borrowing Base Property included in the calculation of Borrowing Base Availability and has had or could
reasonably be expected, when taken together with other matters covered by this §6.20 and §8.6, to result in liability,
clean-up, remediation, containment, correction or other costs to Borrower or any Guarantor individually in excess of $500,000.00
or in the aggregate with other Borrowing Base Properties in excess of $2,000,000.00, or could reasonably be expected to materially
adversely affect the operation of or ability to use such property.

 

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(b)          None
of the Borrower, any Guarantor nor any of their respective Subsidiaries has received notice from any third party including, without
limitation, any Governmental Authority, (i) that it has been identified by the United States Environmental Protection Agency
(“EPA”) as a potentially responsible party under CERCLA with respect to a site listed on the National Priorities
List, 40 C.F.R. Part 300 Appendix B (1986); (ii) that any Hazardous Substance(s) which it has generated, transported or disposed
of have been found at any site at which a federal, state or local agency or other third party has conducted or has ordered that
the Borrower, any Guarantor or any of their respective Subsidiaries conduct a remedial investigation, removal or other response
action pursuant to any Environmental Law; or (iii) that it is or shall be a named party to any claim, action, cause of action,
complaint, or legal or administrative proceeding (in each case, contingent or otherwise) arising out of any third party’s
incurrence of costs, expenses, losses or damages of any kind whatsoever in connection with the release of Hazardous Substances,
which in any case (i) involves Real Estate (other than the Borrowing Base Properties) and has had or could reasonably be expected
to have a Material Adverse Effect or (ii) involves a Borrowing Base Property included in the calculation of Borrowing Base
Availability and has had or could reasonably be expected, when taken together with other matters covered by this §6.20 and
§8.6, to result in liability, clean-up, remediation, containment, correction or other costs to Borrower or any Guarantor individually
in excess of $500,000.00 or in the aggregate with other Borrowing Base Properties in excess of $2,000,000.00, or could reasonably
be expected to materially adversely affect the operation of or ability to use such property.

 

(c)          (i) No
portion of the Real Estate has been used for the handling, processing, storage or disposal of Hazardous Substances except in accordance
with applicable Environmental Laws, and no underground tank or other underground storage receptacle for Hazardous Substances is
located on any portion of the Real Estate except those which are being operated and maintained in compliance with Environmental
Laws; (ii) in the course of any activities conducted by the Borrower, the Guarantors, their respective Subsidiaries or the
tenants and operators of their properties, no Hazardous Substances have been generated or are being used on the Real Estate except
in the ordinary course of the Borrower’s, the Guarantors’ and their respective Subsidiaries’ respective businesses
and in accordance with applicable Environmental Laws; (iii) there has been no past or present Release or threatened Release
of Hazardous Substances on, upon, into or from the Real Estate; (iv) there have been no Releases on, upon, from or into any
real property in the vicinity of any of the Real Estate which, through soil or groundwater contamination, may have come to be located
on the Real Estate; and (v) any Hazardous Substances that have been generated on any of the Real Estate have been transported
off-site in accordance with all applicable Environmental Laws (except with respect to the foregoing in this §6.19(c) as
to (A) any Real Estate (other than the Borrowing Base Properties) where the foregoing has not had or could not reasonably
be expected to have a Material Adverse Effect) and (B) any Borrowing Base Property included in the calculation of Borrowing Base
Availability where the foregoing has not had or could not reasonably be expected, when taken together with other matters covered
by this §6.20 and §8.6, to result in liability, clean up, remediation, containment, correction or other costs to Borrower
or any Guarantor individually in excess $500,000.00 or in the aggregate with other Borrowing Base Properties in excess of $2,000,000.000,
or could reasonably be expected to materially adversely affect the operation of or ability to use such property.

 

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(d)          None
of the Borrower, the Guarantors, their respective Subsidiaries nor the Real Estate is subject to any applicable Environmental Law
requiring the performance of Hazardous Substances site assessments, or the removal or remediation of Hazardous Substances, or the
giving of notice to any governmental agency or the recording or delivery to other Persons of an environmental disclosure document
or statement in each case by virtue of the transactions set forth herein and contemplated hereby, or as a condition to the recording
of the Mortgages or to the effectiveness of any other transactions contemplated hereby, except for such matters with which the
Borrower, the Guarantors, their respective Subsidiaries shall have complied with as of the Closing Date.

 

(e)          There
are no existing or closed sanitary landfills, solid waste disposal sites, or hazardous waste treatment, storage or disposal facilities
(i) on or affecting the Real Estate (other than the Borrowing Base Properties) except where such existence has not had or
could not be reasonably be expected to have a Material Adverse Effect, or (ii) on or affecting a Borrowing Base Property.

 

(f)          There
has been no written claim against the Borrower, the Guarantors or their respective Subsidiaries or to the knowledge of Borrower,
against any other Person, by any party that any use, operation, or condition of the Real Estate has caused any liability or material
adverse condition on any other property which (A) as to any Real Estate other than a Borrowing Base Property included in the
calculation of Borrowing Base Availability has had or could reasonably be expected to have a Material Adverse Effect, nor is there
any actual knowledge of any basis for such a claim and (B) as to any Borrowing Base Property included in the calculation of Borrowing
Base Availability, has had or could reasonably be expected, when taken together with other matters covered by this §6.20 and
§8.6, to result in liability, clean up, remediation, containment, correction or other costs to Borrower or any Guarantor individually
in excess of $500,000.00 or in the aggregate with other Borrowing Base Properties in excess of $2,000,000.00, or could reasonably
be expected to materially adversely the operation of or ability to use such property, nor is there any actual knowledge of any
basis for such a claim.

 

(g)          Except
as disclosed in a report of an Environmental Engineer delivered to Agent in connection with the inclusion of Real Estate or Mortgage
Loan as a Borrowing Base Asset, no asbestos is located in or on any Building, except for nonfriable asbestos or contained friable
asbestos which is being monitored and/or remediated in accordance with the recommendations of an Environmental Engineer.

 

§6.20     Subsidiaries;
Organizational Structure. Schedule 6.20(a) sets forth, as of the date hereof, all of the Subsidiaries of REIT,
the form and jurisdiction of organization of each of the Subsidiaries, and REIT’s direct and indirect ownership interests
therein. Schedule 6.20(b) sets forth, as of the date hereof, all of the Unconsolidated Affiliates of the REIT and its
Subsidiaries, the form and jurisdiction of organization of each of the Unconsolidated Affiliates, REIT’s or its Subsidiary’s
ownership interest therein and the other owners of the applicable Unconsolidated Affiliate. No Person owns any legal, equitable
or beneficial interest in any of the Persons set forth on Schedules 6.20(a) and 6.20(b) except as set forth
on such Schedules. Each Subsidiary Guarantor is a Wholly-Owned Subsidiary of Borrower. Schedule 6.20(c) sets forth, as of
the date hereof, all of the Profits Participations of Borrower and its Subsidiaries.

 

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§6.21      Leases.
An accurate and complete Rent Roll as of the date of inclusion of each Borrowing Base Property in Borrowing Base Availability with
respect to all Leases of any portion of the Borrowing Base Property has been provided to the Agent. The Leases reflected on such
Rent Roll constitute as of the date thereof the sole agreements relating to leasing or licensing of space at such Borrowing Base
Property and in the Building relating thereto. Except as reflected on such Rent Roll or on Schedule 6.21 no tenant
under any Lease is entitled to any free rent, partial rent, rebate of rent payments, credit, offset or deduction in rent, including,
without limitation, lease support payments, lease buy-outs or abatements or credits. Except as set forth in Schedule 6.21,
the Leases reflected therein are, as of the date of inclusion of the applicable Borrowing Base Property in Borrowing Base Availability
in full force and effect in accordance with their respective terms, without any payment default or any other material default thereunder,
nor are there any defenses, counterclaims, offsets, concessions or rebates available to any tenant thereunder, and, except as reflected
in Schedule 6.21, neither the Borrower nor any Guarantor has given or made, any notice of any payment or other material
default, or any claim, which remains uncured or unsatisfied, with respect to any of the Leases, and to the knowledge and belief
of the Borrower, there is no basis for any such claim or notice of default by any tenant.

 

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§6.22     Property.
Except as set forth on Schedule 6.22, (i) all of the Borrowing Base Properties, and all major building systems located thereon
are structurally sound, in good condition and working order and free from material defects, subject to ordinary wear and tear,
(ii) all of the other Real Estate of the Borrower, the Guarantors and their respective Subsidiaries is structurally sound, in good
condition and working order, subject to ordinary wear and tear, except where such defects have not had and could not reasonably
be expected to have a Material Adverse Effect, (iii) the Real Estate, and the use and operation thereof, is in material compliance
with all applicable federal and state law and governmental regulations and any local ordinances, orders or regulations, including
without limitation, laws, regulations and ordinances relating to zoning, building codes, parking, subdivision, fire protection,
health, safety, handicapped access, historic preservation and protection, wetlands, tidelands and flood control, including without
limitation, the American With Disabilities Act or any state laws regarding disability requirements, and any agreement, declaration,
covenant or instrument to which Borrower, any Subsidiary Guarantor or its respective Borrowing Base Property may be subject (hereinafter
referred to collectively as the “Requirements”) (but excluding for purposes of this §6.22, Environmental Laws)
except where a failure to so comply as to Real Estate other than Borrowing Base Properties has not and could not reasonably be
expected to have a Material Adverse Effect, and no Building located on a Borrowing Base Property is a so-called non-conforming
use in violation of applicable zoning regulations (other than a legally non-conforming use), (iv) except as shown on Schedule
6.22 or the Survey for such Borrowing Base Property, such Borrowing Base Property is not located in a flood hazard area as
defined by the Federal Insurance Administration, and such Borrowing Base Property is not located in Zone 3 or Zone 4 of the “Seismic
Zone Map of the U.S.,” (v) neither Borrower nor any Subsidiary Guarantor has received any written notice of, and none of
them has any knowledge of, any approvals, consents, licenses, permits, utility installations and connections (including, without
limitation, drainage facilities), curb cuts and street openings, required by Applicable Laws or any agreement affecting such Borrowing
Base Property for the maintenance, operation, servicing and use of such Borrowing Base Property or any Building for its current
use (hereinafter referred to as the “Project Approvals”) which have not been granted, effected, or performed and completed
(as the case may be), in accordance with the timeline required thereunder, or any fees or charges therefor which have not been
fully paid before becoming delinquent, or which are no longer in full force and effect, and no Project Approvals will terminate,
or become void or voidable or terminable on any foreclosure sale of such Borrowing Base Property pursuant to the applicable Mortgage,
(vi) there are no outstanding notices, suits, orders, decrees or judgments relating to zoning, building use and occupancy, fire,
health, sanitation or other violations affecting, against, or with respect to, such Borrowing Base Property or any part thereof
for any material matter (including any matter that could affect the use or operation of the Property for its intended purposes),
(vii) neither Borrower nor any Subsidiary Guarantor has received any written notice of, nor has any knowledge of, any material
violation of any applicable Requirements or Project Approvals or any other material violation of restrictions or agreements by
which Borrower, such Subsidiary Guarantor or such Borrowing Base Property is bound; (viii) all utilities necessary for the use
and operation of the Borrowing Base Properties are installed to the property lines of the Borrowing Base Properties through dedicated
public rights of way or through perpetual private easements approved by the Agent with respect to which the applicable Mortgage
creates a valid and enforceable first lien and, except in the case of drainage facilities, are connected to the Building located
thereon with valid permits and are adequate to service the Building in compliance with Applicable Law, (ix) the streets abutting
the Borrowing Base Properties are dedicated and accepted public roads, to which the Borrowing Base Properties in each case have
direct access or are perpetual private ways (with direct access to public roads) to which the Borrowing Base Properties have direct
access approved by the Agent and with respect to which the applicable Mortgage creates a valid and enforceable first lien (subject
to Liens permitted by §8.2(ix)), (x) there are no unpaid or outstanding real estate or other taxes (including payments in
lieu of taxes) or assessments on or against any of the Borrowing Base Properties which are payable by the Borrower, any Guarantor
or any of their respective Subsidiaries (except only real estate or other taxes or assessments, that are not yet delinquent or
are being protested as permitted by this Agreement), (xi) there are no unpaid or outstanding gross receipts, rent or sales taxes
payable by Borrower or any Subsidiary Guarantor, with respect to the use and operation of such Borrowing Base Property which are
due and payable, (xii) Borrower has delivered to Agent a true, correct and complete copy of the Management Agreement relating to
such Borrowing Base Property, (xiii) neither the improvements located on such Borrowing Base Property nor any operations therein,
is now or has been damaged, impacted, or otherwise affected in any material respect by or subject to the growth or existence of
a Mold Condition (as defined in the Indemnity Agreement); (xiv) [reserved], (xv) each Borrowing Base Property is separately assessed
for purposes of real estate tax assessment and payment, (xvi) there are no pending, or to the knowledge of the Borrower, threatened
or contemplated, eminent domain proceedings against any Borrowing Base Property except as disclosed to Agent pursuant to §7.7,
(xvii) none of the Borrowing Base Property is now damaged in any material respect as a result of any fire, explosion, accident,
flood or other casualty except as disclosed to Agent pursuant to §7.7, (xviii) none of the Borrower, the Guarantors or any
of their respective Subsidiaries has received any outstanding notice from any insurer or its agent requiring performance of any
work with respect to any of the Borrowing Base Properties, or canceling or threatening to cancel any policy of insurance, and each
of the Borrowing Base Properties complies with the material requirements of all of the Borrower’s, Guarantors’ and
their respective Subsidiaries’ insurance carriers, and (xix) no person or entity has any right or option to acquire any Borrowing
Base Property or any portion thereof or interest therein.

 

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§6.23         Brokers.
None of REIT nor any of its Subsidiaries has engaged or otherwise dealt with any broker, finder or similar entity in connection
with this Agreement or the Loans contemplated hereunder.

 

§6.24         Other
Debt. As of the date of this Agreement, (a) none of the Borrower, any Guarantor nor any of their respective Subsidiaries
is in default of (i) the payment of any Indebtedness, the performance of any related agreement, mortgage, deed of trust, security
agreement, financing agreement, indenture or lease to which any of them is a party, and (b) no Indebtedness of the Borrower,
any Guarantor or any of their respective Subsidiaries has been accelerated. Neither the Borrower nor any Guarantor is a party to
or bound by any agreement, instrument or indenture that may require the subordination in right or time or payment of any of the
Obligations to any other indebtedness or obligation of the Borrower or any Guarantor. Schedule 6.24 hereto sets forth
all agreements, mortgages, deeds of trust, financing agreements or other material agreements binding upon the Borrower and each
Guarantor or their respective properties and entered into by the Borrower and/or such Guarantor as of the date of this Agreement
with respect to any Indebtedness of the Borrower or any Guarantor in an amount greater than $1,000,000.00, and the Borrower has
provided the Agent with such true, correct and complete copies thereof.

 

§6.25         Solvency.
After giving effect to the transactions contemplated by this Agreement and the other Loan Documents, including all Loans made or
to be made hereunder, neither the Borrower nor any Guarantor is insolvent on a balance sheet basis such that the sum of such Person’s
assets exceeds the sum of such Person’s liabilities, the Borrower and each Guarantor is able to pay its debts as they become
due, and the Borrower and each Guarantor has sufficient capital to carry on its business.

 

§6.26         No
Bankruptcy Filing. Neither the Borrower nor any Guarantor is contemplating either the filing of a petition by it under any
state or federal bankruptcy or insolvency laws or for the liquidation of its assets or property, and the Borrower has no knowledge
of any Person contemplating the filing of any such petition against it or any Guarantor.

 

§6.27         No
Fraudulent Intent. Neither the execution and delivery of this Agreement or any of the other Loan Documents nor the performance
of any actions required hereunder or thereunder is being undertaken by the Borrower, any Guarantor or any of their respective Subsidiaries
with or as a result of any actual intent by any of such Persons to hinder, delay or defraud any entity to which any of such Persons
is now or will hereafter become indebted.

 

§6.28         Transaction
in Best Interests of the Borrower and Guarantors; Consideration. The transaction evidenced by this Agreement and the other
Loan Documents is in the best interests of the Borrower, each Guarantor and their respective Subsidiaries. The Borrower and the
Guarantors are engaged in common business enterprises related to those of the Borrower and each Guarantor will derive substantial
direct and indirect benefit from the effectiveness and existence of this Agreement. The direct and indirect benefits to inure to
the Borrower, each Guarantor and their respective Subsidiaries pursuant to this Agreement and the other Loan Documents constitute
substantially more than “reasonably equivalent value” (as such term is used in Section 548 of the Bankruptcy Code)
and “valuable consideration,” “fair value,” and “fair consideration” (as such terms are used
in any applicable state fraudulent conveyance law), in exchange for the benefits to be provided by the Borrower, the Guarantors
and their respective Subsidiaries pursuant to this Agreement and the other Loan Documents, and but for the willingness of each
Guarantor to guaranty the Loan, the Borrower would be unable to obtain the financing contemplated hereunder which financing will
enable the Borrower, each Guarantor and their respective Subsidiaries to have available financing to conduct and expand their business.

 

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§6.29         Contribution
Agreement. The Borrower and the Guarantors have executed and delivered the Contribution Agreement, and the Contribution Agreement
constitutes the valid and legally binding obligations of such parties enforceable against them in accordance with the terms and
provisions thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating
to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of
specific performance or injunctive relief is subject to the discretion of the court before which any proceeding therefor may be
brought.

 

§6.30         Representations
and Warranties of Guarantors. The Borrower has no knowledge that any of the representations or warranties of any Guarantor
contained in any Loan Document to which such Guarantor is a party are untrue or inaccurate in any material respect.

 

§6.31         OFAC.
None of the Borrower, the Guarantors, any of their Subsidiaries or any of their respective officers or, to the knowledge of any
Borrower, their respective directors, employees, agents, advisors or Affiliates (a) is (or will be) a Person: (i) that is, or is
owned or controlled by Persons that are: (x) the subject or target of any Sanctions Laws and Regulations or (y) located, organized
or resident in a country or territory that is, or whose government is, the subject of Sanctions Laws and Regulations, which includes,
as of the Closing Date, Crimea, Cuba, Iran, North Korea, Sudan and Syria or (ii) listed in any list related to or otherwise designated
under any Sanctions Laws and Regulations maintained under OFAC (including, those Persons named on OFAC’s Specially Designated
and Blocked Persons list), the U.S. Department of State or by the United Nations Security Council, the European Union or Her Majesty’s
Treasury of the United Kingdom or under the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (any such Person described in clauses (i) or (ii), a “Designated
Person”) and (b) is not and shall not engage in any dealings or transactions or otherwise be associated with a Designated
Person. In addition, the Borrower hereby agrees to provide to the Lenders any additional information that a Lender reasonably deems
necessary from time to time in order to ensure compliance with Sanctions Laws and Regulations and all Applicable Laws concerning
money laundering and similar activities. Neither Borrower, any Guarantor, nor any Subsidiary, director or officer of Borrower or
Guarantor or, to the knowledge of Borrower, any Affiliate, agent or employee of Borrower or any Guarantor, has engaged in any activity
or conduct which would violate any applicable anti-bribery, anti-corruption or anti-money laundering laws or regulations in any
applicable jurisdiction, including without limitation, any Sanctions Laws and Regulations.

 

§6.32         EEA
Financial Institutions. None of the Borrower, any Guarantor, nor their respective Subsidiaries is an EEA Financial Institution.

 

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§6.33     Borrowing
Base Assets. Each of the Borrowing Base Assets included in the calculation of Borrowing Base Availability satisfies each condition
and requirement of this Agreement to be included in the calculation of Borrowing Base Availability.

 

§6.34     Ground
Lease.

 

(a)          Each
Ground Lease contains the entire agreement of the applicable Subsidiary Guarantor and the applicable owner of the fee interest
in such Borrowing Base Property (the “Fee Owner”), pertaining to the Borrowing Base Property covered thereby. The applicable
Subsidiary Guarantor has no estate, right, title or interest in or to the Borrowing Base Property except under and pursuant to
the Ground Lease. The Borrower has delivered a true and correct copy of the Ground Lease to the Agent and the Ground Lease has
not been modified, amended or assigned, with the exception of written instruments that have been recorded in the applicable real
estate records and referenced in the Title Policy for such Borrowing Base Property.

 

(b)          The
applicable Fee Owner is the exclusive fee simple owner of the Borrowing Base Property, subject only to the Ground Lease and all
Liens and other matters disclosed in the applicable Title Policy for such Borrowing Base Property subject to the Ground Lease,
and the applicable Fee Owner is the sole owner of the lessor’s interest in the Ground Lease.

 

(c)          Except
as set forth on Schedule 6.34, there are no rights to terminate the Ground Lease other than the applicable Fee Owner’s
right to terminate by reason of default, casualty, condemnation or other reasons, in each case as expressly set forth in the Ground
Lease.

 

(d)          Each
Ground Lease is in full force and effect and no breach or default or event that with the giving of notice or passage of time would
constitute to breach or default under any Ground Lease (a “Ground Lease Default”) exists or has occurred on the part
of a Subsidiary Guarantor or, to the knowledge of Borrower, on the part of a Fee Owner under any Ground Lease. All base rent and
additional rent, if any, due and payable under each Ground Lease has been paid through the date of acceptance of such Real Estate
as a Borrowing Base Property and, except as set forth on Schedule 6.34, no Subsidiary Guarantor is required to pay any deferred
or accrued rent after the date of acceptance of such Real Estate as a Borrowing Base Property under any Ground Lease. Neither Borrower
nor a Subsidiary Guarantor has received any written notice that a Ground Lease Default has occurred or exists, or that any Fee
Owner or any third party alleges the same to have occurred or exist.

 

(e)          The
applicable Subsidiary Guarantor is the exclusive owner of the ground lessee’s interest under and pursuant to each Ground
Lease and has not assigned, transferred or encumbered its interest in, to, or under the Ground Lease, except for the Mortgage in
favor of Agent.

 

§6.35     Beneficial
Ownership. The Borrower is in compliance in all material respects with any applicable requirements of the Beneficial Ownership
Regulation. The information included in the most recent Beneficial Ownership Certification, if any, delivered by the Borrower
is true and correct in all respects.

 

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§7.         AFFIRMATIVE
COVENANTS.

 

The Borrower covenants
and agrees that, so long as any Loan, Note or Letter of Credit is outstanding or any Lender has any obligation to make any Loans
or issue Letters of Credit:

 

§7.1       Punctual
Payment. The Borrower will duly and punctually pay or cause to be paid the principal and interest on the Loans and all interest
and fees provided for in this Agreement, all in accordance with the terms of this Agreement and the Notes, as well as all other
sums owing pursuant to the Loan Documents.

 

§7.2       Maintenance
of Office. The Borrower and each Guarantor will maintain their respective chief executive office at 6410 Poplar Avenue, Suite
650, Memphis, Tennessee 38119, or at such other place in the United States of America as the Borrower or any Guarantor shall designate
upon thirty (30) days prior written notice to the Agent and the Lenders, where notices, presentations and demands to or upon the
Borrower or such Guarantor in respect of the Loan Documents may be given or made.

 

§7.3       Records
and Accounts. The Borrower and each Guarantor will (a) keep, and cause each of their respective Subsidiaries to keep true
and accurate records and books of account in which full, true and correct entries will be made in accordance with GAAP and (b) maintain
adequate accounts and reserves for all taxes, depreciation and amortization of its properties and the properties of their respective
Subsidiaries, contingencies and other reserves. Neither the Borrower, any Guarantor nor any of their respective Subsidiaries shall,
without the prior written consent of the Agent which shall not be unreasonably withheld, conditioned or delayed, (x) except
as mandated by GAAP make any material change to the accounting policies/principles used by such Person in preparing the financial
statements and other information described in §6.4 or §7.4 or (y) change its fiscal year. The Agent and the Lenders
acknowledge that REIT’s fiscal year is a calendar year.

 

§7.4       Financial
Statements, Certificates and Information. The Borrower will deliver or cause to be delivered to the Agent, in form and substance
satisfactory to the Agent:

 

(a)          within
fifteen (15) days of the filing of REIT’s Form 10-K with the SEC, if applicable, but in any event not later than ninety (90)
days after the end of each calendar year, the audited consolidated balance sheet of REIT and its Subsidiaries at the end of such
year, and the related audited consolidated statements of income, stockholders’ equity and cash flows for such year, setting
forth in comparative form the figures for the previous fiscal year and all such statements to be in reasonable detail, prepared
in accordance with GAAP, together with a certification by the chief financial officer of the REIT, that the information contained
in such financial statements fairly presents the financial position of REIT and its Subsidiaries, and accompanied by an auditor’s
report prepared without qualification as to the scope of the audit by a nationally recognized accounting firm reasonably approved
by the Agent and who shall have authorized REIT to deliver such financial statements and certifications thereof to the Agent; provided,
however, that the Form 10-K filed with or furnished to the SEC by the Borrower (and which is available online at the website of
the SEC at http://www.sec.gov) shall be deemed to have been provided by the Borrower under this reporting requirement;

 

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(b)          within
fifteen (15) days of the filing of REIT’s Form 10-Q with the SEC, if applicable, but in any event not later than forty-five
(45) days after the end of each of the first three (3) calendar quarters of each year, copies of the unaudited consolidated balance
sheet of REIT and its Subsidiaries, at the end of such quarter, and the related unaudited consolidated statements of income, stockholders’
equity and cash flows for the portion of REIT’s fiscal year then elapsed, all in reasonable detail and prepared in accordance
with GAAP, together with a certification by the chief financial officer of REIT that the information contained in such financial
statements fairly presents the financial position of REIT and its Subsidiaries on the date thereof (subject to year-end adjustments);
provided, however, that the Form 10-Q filed with or furnished to the SEC by the Borrower (and which is available online at the
website of the SEC at http://www.sec.gov) shall be deemed to have been provided by the Borrower under this reporting requirement;

 

(c)          simultaneously
with the delivery of the financial statements referred to in §§7.4(a) and 7.4(b), (i) a statement (a “Compliance
Certificate”) certified by the chief financial officer of REIT in the form of Exhibit H hereto setting forth
in reasonable detail computations evidencing compliance or non-compliance (as the case may be) with the covenants contained in
§9 and the other covenants described in such certificate and (if applicable) setting forth reconciliations to reflect changes
in GAAP since the Balance Sheet Date, (ii) a statement of Adjusted Earnings for the relevant period, and (iii) set forth the
amount of the Future Funding Commitments for the applicable period for §9.6 (with supporting detail). The Borrower shall submit
with the Compliance Certificate a Borrowing Base Certificate in the form of Exhibit G attached hereto (a “Borrowing
Base Certificate”) pursuant to which the Borrower shall list the Tranche A Loans, the Tranche B Loans and the Tranche
C Loans, the Non-Stabilized Real Estate Collateral, the Stabilized Real Estate Collateral, set forth the amount of the Operating
and Interest Holdback (with supporting detail), and calculate the amount of the Borrowing Base Availability and the components
thereof as of the end of the immediately preceding calendar quarter, and (iii) a calculation of the components of Adjusted Net
Operating Income, together with such supporting information as Agent may reasonably request. Such Borrowing Base Certificate shall
specify whether any Borrowing Base Loan is a Defaulted Loan or a Delinquent Loan. All income, expense and value associated with
Real Estate or other Investments acquired or disposed of during any quarter will be adjusted, where applicable;

 

(d)          simultaneously
with the delivery of the financial statements referred to in §§7.4(a) and 7.4(b), (i) a Rent Roll for each
of the Borrowing Base Properties as of the end of each calendar quarter (including the fourth calendar quarter in each year), (ii) an
operating statement for each of the Borrowing Base Properties for each such calendar quarter and year to date and a consolidated
operating statement for the Borrowing Base Properties for each such calendar quarter and year to date (such statements and reports
to be in form reasonably satisfactory to the Agent), (iii) [reserved], (iv) an operating statement and calculation of
Property NOI for the real estate securing each Borrowing Base Loan, and (v) other evidence reasonably required by the Agent
to determine compliance with the covenants contained in §9 and the other covenants described in such certificate;

 

(e)          simultaneously
with the delivery of the financial statements referred to in §§7.4(a) and 7.4(b) above, a statement (i) listing
the Real Estate owned by REIT and its Subsidiaries (or in which REIT or any of its Subsidiaries owns an interest) and stating the
location thereof, the date acquired and the acquisition cost and the Property NOI generated by such Real Estate, (ii) listing the
Mortgage Loans and Other Loans owned by REIT and its Subsidiaries, the collateral securing such Mortgage Loans and Other Loans,
the date such Mortgage Loan or Other Loan was made and its maturity date, the outstanding principal balance, whether any payment
or other defaults exists under such Mortgage Loan or Other Loan, the number of units and the current occupancy within the collateral
therefor, the status of completion and the amount of any interest or operating reserve remaining under such loan, (iii) listing
the Indebtedness of REIT and its Subsidiaries (excluding Indebtedness of the type described in §§8.1(a), 8.1(c), 8.1(d) and
8.1(f)), which statement shall include, without limitation, a statement of the original principal amount of such Indebtedness and
the current amount outstanding, the holder thereof, the maturity date and any extension options, the interest rate, the collateral
provided for such Indebtedness and whether such Indebtedness is Recourse Indebtedness, Secured Indebtedness, Unsecured Indebtedness
or Non-Recourse Indebtedness, (iv) listing performance data with respect to the Borrowing Base Loans and associated collateral,
including, without limitation, outstanding principal balances, any outstanding delinquencies or defaults, and prepayments in whole
or in part, and status of leasing or occupancy, and (v) listing the Profits Participations of Borrower and its Subsidiaries;

 

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(f)          contemporaneously
with the filing or mailing thereof, copies of all material of a financial nature, reports, proxy statements and all other information
sent to the owners of the Borrower or REIT; provided, however, that the reports and other information filed with or furnished to
the SEC by the Borrower (and which are available online at the website of the SEC at http://www.sec.gov) shall be deemed to have
been provided by the Borrower under this reporting requirement;

 

(g)          promptly
following the Agent’s request, after they are filed with the Internal Revenue Service, copies of all annual federal income
tax returns and amendments thereto of the Borrower and REIT;

 

(h)          promptly
upon the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration statements
on Form S-8 or its equivalent) and annual, quarterly, monthly, special (8-K) or other reports or information that REIT or any of
its Subsidiaries shall file with the SEC; provided, however, that the reports and statements filed with or furnished to the SEC
by the Borrower (and which is available online at the website of the SEC at http://www.sec.gov) shall be deemed to have been provided
by the Borrower under this reporting requirement;

 

(i)          notice
of any audits pending or threatened in writing with respect to any tax returns filed by REIT or any of its Subsidiaries promptly
following notice of such audit;

 

(j)          upon
the Agent’s request, evidence reasonably satisfactory to the Agent of the timely payment of all real estate taxes for the
Borrowing Base Assets which may take the form of a real estate tax search from the applicable Title Company;

 

(k)          within
five (5) Business Days of receipt, copies of any written claim made with respect to any Non-Recourse Exclusion;

 

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(l)          Without
limiting the terms of §2.11 and §2.12, a completed and executed Beneficial Ownership Certification if requested by the
Agent or any Lender at any time Agent or such Lender determines that it is required by law to obtain such certification; and

 

(m)          from
time to time, such other financial data and information in the possession of REIT or its Subsidiaries (including without limitation
auditors’ management letters, status of litigation or investigations against REIT or any of its Subsidiaries and any settlement
discussions relating thereto, property inspection and environmental reports and information as to zoning and other legal and regulatory
changes affecting REIT or any of its Subsidiaries) as the Agent may reasonably request.

 

The Agent shall promptly distribute to
the Lenders materials received under §7.4(a)-(e). The Borrower shall cooperate with the Agent in connection with the publication
of certain materials and/or information provided by or on behalf of the Borrower or REIT. Documents required to be delivered pursuant
to the Loan Documents shall be delivered by or on behalf of the Borrower to the Agent and the Lenders (collectively, “Information
Materials”) pursuant to this Section and the Borrower shall designate Information Materials (a) that are either available
to the public or not material with respect to the REIT and its Subsidiaries or any of their respective securities for purposes
of United States federal and state securities laws, as “Public Information” and (b) that are not Public Information
as “Private Information.” Any material to be delivered pursuant to this §7.4 may be delivered electronically directly
to the Agent and the Lenders provided that such material is in a format reasonably acceptable to the Agent, and such material shall
be deemed to have been delivered to the Agent and the Lenders upon the Agent’s receipt thereof. Upon the request of the Agent,
the Borrower shall deliver paper copies thereof to the Agent. The Borrower and the Guarantors authorize Agent and Arrangers to
disseminate any such materials, including without limitation the Information Materials through the use of Intralinks, SyndTrak
or any other electronic information dissemination system (an “Electronic System”). Any such Electronic System is provided
“as is” and “as available.” The Agent and the Arrangers do not warrant the adequacy of any Electronic System
and expressly disclaim liability for errors or omissions in any notice, demand, communication, information or other material provided
by or on behalf of Borrower that is distributed over or by any such Electronic System (“Communications”). No warranty
of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability, fitness for a particular
purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made by Agent or the Arrangers
in connection with the Communications or the Electronic System. In no event shall the Agent, the Arrangers or any of their directors,
officers, employees, agents or attorneys have any liability to the Borrower or the Guarantors, any Lender or any other Person for
damages of any kind, including, without limitation, direct or indirect, special, incidental or consequential damages, losses or
expenses (whether in tort, contract or otherwise) arising out of the Borrower’s, any Guarantors’, the Agent’s
or Arrangers’ transmission of Communications through the Electronic System, and the Borrower and the Guarantors release Agent,
the Arrangers and the Lenders from any liability in connection therewith. Certain of the Lenders (each, a “Public Lender”)
may have personnel who do not wish to receive material non-public information with respect to the REIT, its Subsidiaries or its
Affiliates, or the respective securities of any of the foregoing, and who may be engaged in investment and other market related
activities with respect to such Persons’ securities. The Borrower hereby agrees that it will identify that portion of the
Information Materials that may be distributed to the Public Lenders and that (i) all such Information Materials shall be clearly
and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently
on the first page thereof; (ii) by marking Information Materials “PUBLIC,” the Borrower shall be deemed to have authorized
the Agent, the Lenders and the Arrangers to treat such Information Materials as not containing any material non-public information
with respect to the Borrower, its Subsidiaries, its Affiliates or their respective securities for purposes of United States Federal
and state securities laws (provided, however, that to the extent such Information Materials constitute confidential information,
they shall be treated as provided in §18.7); (iii) all Information Materials marked “PUBLIC” are permitted to
be made available through a portion of any electronic dissemination system designated “Public Investor” or a similar
designation; and (iv) the Agent and the Arrangers shall be entitled to treat any Information Materials that are not marked “PUBLIC”
as being suitable only for posting on a portion of any electronic dissemination system not designated “Public Investor”
or a similar designation. For the avoidance of doubt, any Information Materials not marked “PUBLIC” shall be deemed
to be “Private Information”

 

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§7.5       Notices.

 

(a)          Defaults.
The Borrower will promptly upon becoming aware of same notify the Agent in writing of the occurrence of any Default or Event of
Default, which notice shall describe such occurrence with reasonable specificity and shall state that such notice is a “notice
of default”. If any Person shall give any notice of the existence of a claimed default or take any other action in respect
of a claimed default (whether or not constituting an Event of Default) under this Agreement or under any note, evidence of indebtedness,
indenture or other obligation to which or with respect to which the Borrower, any Guarantor or any of their respective Subsidiaries
is a party or obligor, whether as principal or surety, and such default would permit the holder of such note or obligation or other
evidence of indebtedness to accelerate the maturity thereof, which acceleration would either cause a Default or have a Material
Adverse Effect, the Borrower shall forthwith give written notice thereof to the Agent and each of the Lenders, describing the notice
or action and the nature of the claimed default.

 

(b)          Environmental
Events. The Borrower will give notice to the Agent within ten (10) Business Days of receiving actual notice or having actual
knowledge of (i) any potential or known Release, or threat of Release, of any Hazardous Substances in violation of any applicable
Environmental Law; (ii) any violation of any Environmental Law that the Borrower, any Guarantor or any of their respective
Subsidiaries reports in writing or is reportable by such Person in writing (or for which any written report supplemental to any
oral report is made) to any federal, state or local environmental agency or (iii) any inquiry, proceeding, investigation,
or other action, including a notice from any agency of potential environmental liability, of any federal, state or local environmental
agency or board, that in any case involves (A) a Borrowing Base Asset, (B) any other Real Estate and could reasonably be expected
to have a Material Adverse Effect or (C) the Agent’s liens or security title on the Collateral pursuant to the Security Documents.

 

(c)          Notification
of Claims Against Collateral. The Borrower will give notice to the Agent in writing within ten (10) Business Days of receiving
actual notice or having actual knowledge of any material setoff, claims (including, with respect to any Borrowing Base Asset, environmental
claims), withholdings or other defenses to which any of the Collateral, or the rights of the Agent or the Lenders with respect
to the Collateral, are subject.

 

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(d)          Notice
of Litigation and Judgments. The Borrower will give notice to the Agent in writing within ten (10) Business Days of receiving
actual notice or having actual knowledge of any litigation, government investigation or proceedings threatened in writing or any
pending litigation, government investigation and proceedings affecting the Borrower, any Guarantor or any of their respective Subsidiaries
or to which the Borrower, any Guarantor or any of their respective Subsidiaries is or is to become a party involving an uninsured
claim against the Borrower, any Guarantor or any of their respective Subsidiaries that could either reasonably be expected to cause
a Default or could reasonably be expected to have a Material Adverse Effect and stating the nature and status of such litigation,
government investigation or proceedings. The Borrower will give notice to the Agent, in writing, in form and detail reasonably
satisfactory to the Agent and each of the Lenders, within ten (10) Business Days of any judgment not covered by insurance, whether
final or otherwise, against the REIT or any of its Subsidiaries in an amount in excess of $1,000,000.00.

 

(e)          Ground
Lease. The Borrower will give notice to the Agent in writing within ten (10) Business Days of any default by a Fee Owner in
the performance or observance of any of the terms, covenants and conditions on the part of a Fee Owner to be performed or observed
under a Ground Lease. The Borrower will deliver to the Agent within five (5) Business Days copies of all material notices, certificates,
requests, demands and other instruments received from or given by a Fee Owner to the Borrower or a Subsidiary Guarantor under a
Ground Lease.

 

(f)          ERISA.
The Borrower will give notice to the Agent within ten (10) Business Days after REIT or any ERISA Affiliate (i) gives or is
required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA) with respect
to any Guaranteed Pension Plan, or knows that the plan administrator of any such plan has given or is required to give notice of
any such reportable event; (ii) gives a copy of any notice of complete or partial withdrawal liability under Title IV of ERISA;
or (iii) receives any notice from the PBGC under Title IV or ERISA of an intent to terminate or appoint a trustee to administer
any such plan.

 

(g)          Notices
of Default Under Leases. The Borrower will give notice to the Agent in writing within ten (10) Business Days after the Borrower
or any Guarantor receives written notices from tenants under Leases at a Borrowing Base Asset representing 15% or more aggregate
units at such properties at any one time of a default by the landlord under such Lease.

 

(h)          [Intentionally
Omitted.]

 

(i)          Notification
of Lenders. Within five (5) Business Days after receiving any notice under this §7.5, the Agent will forward a copy thereof
to each of the Lenders, together with copies of any certificates or other written information that accompanied such notice.

 

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§7.6        Existence;
Maintenance of Properties.

 

(a)          Except
as permitted under §§8.4 and 8.8, the Borrower and each Guarantor (i) will preserve and keep in full force and effect
their legal existence in the jurisdiction of its incorporation or formation, (ii) will cause each of their respective Subsidiaries
that are not Guarantors to preserve and keep in full force and effect their legal existence in the jurisdiction of its incorporation
or formation except where such failure has not had and could not reasonably be expected to have a Material Adverse Effect, and
(iii) in the event the Borrower or any Guarantor is a limited liability company, shall not, nor shall any of its members or managers,
take any action in furtherance of, or consummate, an LLC Division. The Borrower and each Guarantor will preserve and keep in full
force all of their rights and franchises and those of their respective Subsidiaries, the preservation of which is necessary to
the conduct of their business (except with respect to Subsidiaries of the Borrower that are not Guarantors, where such failure
has not had and could not reasonably be expected to have a Material Adverse Effect). The Borrower shall cause REIT to at all times
comply with all requirements and Applicable Laws and regulations necessary to maintain REIT Status and continue to receive REIT
Status. The Borrower shall continue to own directly or indirectly one hundred percent (100%) of the Subsidiary Guarantors. The
common stock of REIT shall at all times during the term of this Agreement be listed for trading and be traded on the New York Stock
Exchange or another nationally recognized exchange.

 

(b)          The
Borrower and each Guarantor (i) will cause all of its properties and those of its Subsidiaries used or useful in the conduct
of its business or the business of its Subsidiaries to be maintained and kept in good condition, repair and working order (ordinary
wear and tear excepted) and supplied with all necessary equipment, and (ii) will cause to be made all repairs, renewals, replacements
and improvements thereof reasonably necessary to maintain such good condition, repair and working order, in each case the failure
of which involving a property that is not a Borrowing Base Property would result in a Material Adverse Effect.

 

§7.7        Insurance;
Condemnation.

 

(a)          The
Borrower and each Subsidiary Guarantor will, at its expense, procure and maintain, or cause to be procured and maintained, for
the benefit of the Borrower, each such Subsidiary Guarantor and the Agent, insurance policies issued by such insurance companies,
in such amounts, in such form and substance, and with such coverages, endorsements, deductibles and expiration dates as are required
by this §7.7, providing the following types of insurance covering each Borrowing Base Property:

 

(i)          “Cause
of Loss - Special Form” property insurance (including broad form flood, broad form earthquake, windstorm (if reasonably required
by Agent), coverage from loss or damage arising from acts of terrorism and comprehensive boiler and machinery coverage) on each
Building and the contents therein of the Borrower and each Subsidiary Guarantor in an amount not less than one hundred percent
(100%) of the full replacement cost of each Building and the contents therein of the Borrower and each Subsidiary Guarantor or
such other amount as the Agent may approve, with deductibles not to exceed $50,000.00 for any one occurrence (or not to exceed
five percent (5%) of the insured value per location for windstorm), with, if not included within the policy itself, a replacement
cost coverage endorsement, an agreed amount endorsement, and, if requested by the Agent, a contingent liability from operation
of building law endorsement in such amounts as the Agent may reasonably require. Full replacement cost as used herein means the
cost of replacing the Building (exclusive of the cost of excavations, foundations and footings below the lowest basement floor)
and the contents therein of the Borrower and each Subsidiary Guarantor without deduction for physical depreciation thereof;

 

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(ii)         During
the course of construction or repair of any Building, the insurance required by clause (i) above shall be written on a builders
risk, completed value, non-reporting form, meeting all of the terms required by clause (i) above, covering the total value
of work performed, materials, equipment, machinery and supplies furnished, existing structures, and temporary structures being
erected on or near the Borrowing Base Property, including coverage against collapse and damage during transit or while being stored
off-site, and containing a soft costs (including loss of rents) coverage endorsement and a permission to occupy endorsement;

 

(iii)        Flood
insurance if at any time any Building is located in any federally designated “special hazard area” (including any area
having special flood, mudslide and/or flood-related erosion hazards, and shown on a Flood Hazard Boundary Map or a Flood Insurance
Rate Map published by the Federal Emergency Management Agency) or if flood insurance is otherwise required under any laws, policies
or procedures placed on federally regulated lenders under the National Flood Insurance Reform Act of 1994, and the broad form flood
coverage required by clause (i) above is not available, in an amount equal to the full replacement cost or the maximum amount
then available under the National Flood Insurance Program;

 

(iv)        Rent
loss insurance in an amount sufficient to recover at least the total estimated gross receipts from all sources of income, including
without limitation, rental income, for the Borrowing Base Property for a twelve (12) month period;

 

(v)         Commercial
general liability insurance against claims for personal injury (to include bodily injury and personal and advertising injury) and
property damage liability, all on an occurrence basis, if commercially available, with such coverages as the Agent may reasonably
request (including, without limitation, contractual liability coverage, completed operations coverage for a period of two years
following completion of construction of any improvements on the Borrowing Base Property, and coverages equivalent to an ISO broad
form), with a general aggregate limit of not less than $2,000,000.00, a completed operations aggregate limit of not less than $2,000,000.00,
and a combined single “per occurrence” limit of not less than $1,000,000.00 for bodily injury and property damage.

 

(vi)        During
the course of construction or repair of any improvements on the Borrowing Base Property, the general contractor selected to oversee
such improvements shall provide commercial general liability insurance (including completed operations coverage) naming Borrower
as an additional insured, or in lieu thereof, may provide for such coverage by way of an owner’s contingent or protective
liability insurance covering claims not covered by or under the terms or provisions of the insurance required by clause (v) above;

 

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(vii)       Employer’s
liability insurance with respect to the Borrower’s employees;

 

(viii)      Umbrella
or excess liability insurance with limits of not less than $5,000,000.00 to be in excess of the limits of the insurance required
by clauses (v), (vi) and (vii) above, with coverage at least as broad as the primary coverages of the insurance required
by clauses (v), (vi) and (vii) above, with any excess liability insurance to be at least as broad as the coverages of
the lead umbrella policy. All such policies shall be endorsed to provide defense coverage obligations;

 

(ix)         Workers’
compensation insurance for all employees of the Borrower or each Subsidiary Guarantor engaged on or with respect to the Borrowing
Base Property with limits as required by Applicable Law; and

 

(x)          Such
other insurance in such form and in such amounts as may from time to time be reasonably required by the Agent against other insurable
hazards and casualties which at the time are commonly insured against in the case of properties of similar character and location
to the Borrowing Base Properties.

 

The Borrower shall
pay, or cause to be paid, all premiums on insurance policies. The insurance policies with respect to all Borrowing Base Properties
provided for in clauses (v), (vi) and (viii) above shall name the Agent and each Lender as an additional insured and
shall contain a cross liability/severability endorsement. The insurance policies provided for in clauses (i), (ii), (iii), (iv)
and (vi) above shall name the Agent as mortgagee (with respect to each Borrowing Base Property) and loss payee, shall be first
payable in case of loss to the Agent, and shall contain mortgage clauses (with respect to each Borrowing Base Property) and lender’s
loss payable endorsements in form and substance acceptable to the Agent. The Borrower shall deliver certificates of insurance evidencing
all such policies to the Agent, and the Borrower shall promptly furnish to the Agent all renewal notices and evidence that all
premiums or portions thereof then due and payable have been paid. Borrower shall upon the request of Agent provide to Agent a duplicate
original or certified copy of the insurance policies required hereunder promptly after the original policy is received by Borrower.
Not less than five (5) Business Days prior to the expiration date of the policies, as the same may be reduced by Agent, the Borrower
shall deliver to the Agent evidence of continued coverage, as may be satisfactory to the Agent, and within five (5) Business Days
after the renewal date of such policies, the Borrower shall deliver a certificate of insurance to Agent, in form and substance
satisfactory to the Agent.

 

(b)          All
policies of insurance required by this Agreement shall contain clauses or endorsements to the effect that (i) no act or omission
of the Borrower or any Subsidiary or anyone acting for the Borrower or any Subsidiary (including, without limitation, any representations
made in the procurement of such insurance), which might otherwise result in a forfeiture of such insurance or any part thereof,
no occupancy or use of the Borrowing Base Property for purposes more hazardous than permitted by the terms of the policy, and no
foreclosure or any other change in title to the Borrowing Base Property or any part thereof, shall affect the validity or enforceability
of such insurance insofar as the Agent is concerned, (ii) the insurer waives any right of set off, counterclaim, subrogation, or
any deduction in respect of any liability of the Borrower or any Subsidiary and the Agent, (iii) such insurance is primary and
without right of contribution from any other insurance which may be available, (iv) such policies shall not be modified so as to
reduce or in any way negatively affect insurance coverage on any Borrowing Base Property, canceled or terminated prior to the scheduled
expiration date thereof without the insurer thereunder or the Borrower giving at least thirty (30) days prior written notice to
the Agent; provided, however, that only ten (10) days prior written notice to Agent shall be required if such cancellation or termination
is due to non-payment of any insurance premium (provided further that Borrower shall within two (2) Business Days provide to Agent
a copy of any notice received by Borrower pursuant to this clause (iv)), and (v) that the Agent or the Lenders shall not be liable
for any premiums thereon or subject to any assessments thereunder, and shall in all events be in amounts sufficient to avoid any
coinsurance liability.

 

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(c)          The
insurance required by this Agreement may be effected through a blanket policy or policies covering additional locations and property
of the Borrower and other Persons not included in the Borrowing Base Properties, provided that such blanket policy or policies
comply with all of the terms and provisions of this §7.7, including, without limitation, the Agent’s determination based
on a review of the schedule of locations and values that the amount of such coverage is sufficient in light of the other risks
and properties insured under the blanket policy.

 

(d)          All
policies of insurance required by this Agreement shall be issued by companies authorized to do business in the State where the
policy is issued and also in the States where the Borrowing Base Properties are located and shall be issued by companies having
a rating in Best’s Key Rating Guide of at least “A-” and a financial size category of at least “VIII”.

 

(e)          Neither
the Borrower nor any Subsidiary Guarantor shall carry separate insurance, concurrent in kind or form or contributing in the event
of loss, with any insurance required under this Agreement with respect to Borrowing Base Properties unless such insurance complies
with the terms and provisions of this §7.7.

 

(f)          In
the event of any loss or damage to or Taking of any Borrowing Base Property, the Borrower or the applicable Guarantor shall give
prompt written notice to the insurance carrier and the Agent. Each of the Borrower and the Guarantors hereby irrevocably authorizes
and empowers the Agent, at the Agent’s option and in the Agent’s sole discretion or at the request of the Required
Lenders in their sole discretion, as its attorney in fact, to make proof of such loss, to adjust and compromise any claim under
insurance policies or as a result of a Taking, to appear in and prosecute any action arising from such insurance policies or as
a result of a Taking, to collect and receive Insurance Proceeds and Condemnation Proceeds, and to deduct therefrom the Agent’s
reasonable out-of-pocket expenses incurred in the collection of such Insurance Proceeds and Condemnation Proceeds; provided, however,
that so long as no Default or Event of Default has occurred and is continuing and so long as the Borrower or any Guarantor shall
in good faith diligently pursue such claim, the Borrower or such Guarantor may make proof of loss and appear in any proceedings
or negotiations with respect to the adjustment of such claim, except that the Borrower or such Guarantor may not settle, adjust
or compromise any such claim without the prior written consent of the Agent, which consent shall not be unreasonably withheld or
delayed; provided, further, that the Borrower or such Guarantor may make proof of loss and adjust and compromise any claim under
casualty insurance policies which is in an amount less than twenty-five percent (25%) of the As-Stabilized Appraised Value (if
such Borrowing Base Property is Non-Stabilized Real Estate Collateral) or the As-Is Appraised Value (if such Borrowing Base Property
is Stabilized Real Estate Collateral) of the affected Borrowing Base Property so long as no Default or Event of Default has occurred
and is continuing and so long as the Borrower or such Guarantor shall in good faith diligently pursue such claim. Except as provided
in the immediately preceding sentence with respect to claims under casualty insurance policies of less than twenty-five percent
(25%) of the As-Stabilized Appraised Value (if such Borrowing Base Property is Non-Stabilized Real Estate Collateral) or the As-Is
Appraised Value (if such Borrowing Base Property is Stabilized Real Estate Collateral) of the affected Borrowing Base Property,
Borrower or the applicable Guarantor shall pay to Agent any Insurance Proceeds and Condemnation Proceeds for Agent to hold and
apply as provided in this §7.7. The Borrower and each Guarantor further authorize the Agent, at the Agent’s option,
subject to clause (g) below, to (i) apply the balance of such Insurance Proceeds and Condemnation Proceeds to the payment
of the Obligations whether or not then due, or (ii) if the Agent shall require the reconstruction or repair of the Borrowing
Base Property, to hold the balance of such proceeds as trustee to be used to pay taxes, charges, sewer use fees, water rates and
assessments which may be imposed on the Borrowing Base Property and the Obligations as they become due during the course of reconstruction
or repair of the Borrowing Base Property and to reimburse the Borrower or such Guarantor, in accordance with such terms and conditions
as the Agent may prescribe, for, or to pay directly, the costs of reconstruction or repair of the Borrowing Base Property, and
upon completion of such reconstruction or repair to pay any excess Insurance Proceeds to the Borrower, provided that (i) upon
completion of such reconstruction or repair, such Borrowing Base Property is in compliance with all applicable state, federal and
local laws, ordinances and regulations, including, without limitation, all building and zoning laws, ordinances and regulations
and (ii) no Defaults or Events of Default exist or are continuing under this Agreement on the date of such payment to the
Borrower.

 

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(g)          Notwithstanding
the foregoing, the Agent shall make net Insurance Proceeds and Condemnation Proceeds available to the Borrower or such Guarantor
to reconstruct and repair the Borrowing Base Property, in accordance with such terms and conditions as the Agent may prescribe
in the Agent’s discretion for the disbursement of the proceeds, provided that (i) the cost of such reconstruction or
repair is not estimated by the Agent to exceed fifty percent (50%) of the replacement cost of the damaged Building (as reasonably
estimated by the Agent), (ii) no Default or Event of Default shall have occurred and be continuing, (iii) the Borrower
or such Guarantor shall have provided to the Agent additional cash security in an amount equal to the amount reasonably estimated
by the Agent to be the amount in excess of such proceeds which will be required to complete such repair or restoration, (iv) the
Agent shall have reasonably approved the plans and specifications, construction budget, construction contracts, and construction
schedule for such repair or restoration (provided that the Agent shall not disapprove such plans and specifications if the Building
is to be restored to substantially its condition immediately prior to such damage), (v) [intentionally omitted], (vi) the
Agent shall reasonably determine that such repair or reconstruction can be completed prior to the Revolving Credit Maturity Date,
(vii) the Agent shall receive evidence reasonably satisfactory to it that any such restoration, repair or rebuilding complies
in all material respects with any and all applicable state, federal and local laws, ordinances and regulations, including without
limitation, zoning laws, ordinances and regulations, and that all required permits, licenses and approvals relative thereto have
been or will be issued in a manner so as not to materially impede the progress of restoration, (viii) the Agent shall receive
evidence reasonably satisfactory to it that the insurer under such policies of fire or other casualty insurance does not assert
any defense to payment under such policies against the Borrower, any Guarantor or the Agent, and (ix) with respect to any
Taking, (a) the value of the land taken under such condemnation is less than $500,000.00; (b) less than ten percent (10%)
of the land is taken; (c) the land that is taken is located along the perimeter or periphery of the land; (d) access
to the Borrowing Base Property is not materially affected in any way by the Taking; (e) no portion of the improvements are
taken, and (x) the Agent shall receive evidence reasonably satisfactory to it that once the Borrowing Base Property has been
reconstructed or repaired, and each of the other conditions set forth in this clause (g) have been satisfied, the Borrower
will be in compliance, on a pro forma basis, with the covenants set forth in §9. Any excess Insurance Proceeds shall be paid
to the Borrower, or if a Default or Event of Default has occurred and is continuing, such proceeds shall be applied to the payment
of the Obligations, unless in either case by the terms of the applicable insurance policy the excess proceeds are required to be
returned to such insurer. Any excess Condemnation Proceeds shall be applied to the payment of the Obligations. In no event shall
the provisions of this Section be construed to extend the Revolving Credit Maturity Date or to limit in any way any right
or remedy of the Agent upon the occurrence of an Event of Default hereunder. If the Borrowing Base Property is sold or the Borrowing
Base Property is acquired by the Agent, all right, title and interest of the Borrower and any Guarantor in and to any insurance
policies to the extent that they relate to Borrowing Base Properties and unearned premiums thereon and in and to the proceeds thereof
resulting from loss or damage to the Borrowing Base Property prior to the sale or acquisition shall pass to the Agent or any other
successor in interest to the Borrower or purchaser of the Borrowing Base Property.

 

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(h)          The
Borrower, the Guarantors and their respective Subsidiaries (as applicable) will, at their expense, procure and maintain insurance
covering the Borrower, the Guarantors and their respective Subsidiaries (as applicable) and the Real Estate other than the Borrowing
Base Property in such amounts and against such risks and casualties as are customary for properties of similar character and location,
due regard being given to the type of improvements thereon, their construction, location, use and occupancy.

 

§7.8        Taxes;
Liens. The Borrower and the Guarantors will, and will cause their respective Subsidiaries to, duly pay and discharge, or cause
to be paid and discharged, before the same shall become delinquent, all taxes, assessments and other governmental charges imposed
upon them or upon the Borrowing Base Assets or the other Real Estate, sales and activities, or any part thereof, or upon the income
or profits therefrom as well as all claims for labor, materials or supplies that if unpaid might by law become a lien or charge
upon any of its property or other Liens affecting any of the Borrowing Base Assets, the Collateral or other property of the Borrower,
the Guarantors or their respective Subsidiaries and all non-governmental assessments, levies, maintenance and other charges, whether
resulting from covenants, conditions and restrictions or otherwise, water and sewer rents and charges assessments on any water
stock, utility charges and assessments and owner association dues, fees and levies, provided that any such tax, assessment,
charge or levy or claim need not be paid if the validity or amount thereof shall currently be contested in good faith by appropriate
proceedings which shall suspend the collection thereof with respect to such property and the Borrower or applicable Guarantor shall
not be subject to any fine, suspension or loss of privileges or rights by reason of such proceeding, neither such property nor
any portion thereof or interest therein would be in any danger of sale, forfeiture, loss or suspension of operation by reason of
such proceeding and the Borrower, such Guarantor or any such Subsidiary shall have set aside on its books adequate reserves in
accordance with GAAP (or if such aggregate amount so contested relates to a Borrowing Base Property and equals or exceeds $250,000,
then Borrower shall have deposited with Agent as additional Collateral adequate reserves as reasonably determined by Agent); and
provided, further, that forthwith upon the commencement of proceedings to foreclose any lien that may have attached
as security therefor, the Borrower, such Guarantor or any such Subsidiary either (i) will provide a bond issued by a surety
reasonably acceptable to the Agent and sufficient to stay all such proceedings or (ii) if no such bond is provided, will pay
each such tax, assessment, charge or levy. Borrower shall deliver to the Agent evidence of payment of taxes, other assessments,
levies and charges described in this §7.8 with respect to the Borrowing Base Properties promptly following payment thereof
unless the same are being contested in accordance with the terms hereof and the other Loan Documents.

 

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§7.9           Inspection
of Properties and Books. The Borrower and the Guarantors will, and will cause their respective Subsidiaries to, permit the
Agent and the Lenders, at the Borrower’s expense and upon reasonable prior notice, to visit and inspect any of the Borrowing
Base Assets (subject to the rights of tenants under their Leases or Collateral Borrowers under the Borrowing Base Loan Documents),
to examine the books of account of the Borrower, any Guarantor and their respective Subsidiaries (and to make copies thereof and
extracts therefrom) and to discuss the affairs, finances and accounts of the Borrower, any Guarantor and their respective Subsidiaries
with, and to be advised as to the same by, their respective officers, partners or members, all at such reasonable times and intervals
as the Agent or any Lender may reasonably request, provided that so long as no Default or Event of Default shall have occurred
and be continuing, the Borrower shall not be required to pay for, and such visits and inspections shall not occur more often than
once in any twelve (12) month period. The Lenders shall use good faith efforts to coordinate such visits and inspections so as
to minimize the interference with and disruption to the normal business operations of such Persons.

 

§7.10         Compliance
with Laws, Contracts, Licenses, and Permits. The Borrower and the Guarantors will, and will cause each of their respective
Subsidiaries to, comply in all material respects with (a) all Applicable Laws and regulations now or hereafter in effect wherever
its business is conducted, including all Environmental Laws, (b) the provisions of its corporate charter, partnership agreement,
limited liability company agreement or declaration of trust, as the case may be, and other charter documents and bylaws, (c) all
material agreements and instruments to which it is a party or by which it or any of its properties may be bound, (d) all applicable
decrees, orders, and judgments, and (e) all licenses and permits required by Applicable Laws and regulations for the conduct
of its business or the ownership, use or operation of its properties. If any authorization, consent, approval, permit or license
from any officer, agency or instrumentality of any government shall become necessary or required in order that the Borrower, any
Guarantor or their respective Subsidiaries may fulfill any of its obligations hereunder, the Borrower, such Guarantor or such Subsidiary
will promptly take or cause to be taken all steps reasonably necessary to obtain such authorization, consent, approval, permit
or license and furnish the Agent and the Lenders with evidence thereof. The Borrower shall develop and implement such programs,
policies and procedures as are necessary to comply with the Patriot Act and shall promptly advise the Agent in writing in the event
that the Borrower shall determine that any investors in the Borrower are in violation of such act.

 

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§7.11         Further
Assurances. The Borrower and each Guarantor will and will cause each of their respective Subsidiaries to, cooperate with the
Agent and the Lenders and execute such further instruments and documents as the Lenders or the Agent shall reasonably request to
carry out to their satisfaction the transactions contemplated by this Agreement and the other Loan Documents.

 

§7.12         Management.
The Borrower shall not and shall not permit any Subsidiary Guarantor to enter into any Management Agreement for any Borrowing Base
Property without the prior written consent of the Agent (which shall not be unreasonably withheld), and after such approval, no
such Management Agreement shall be modified in any material respect or terminated without the Agent’s prior written approval,
such approval not to be unreasonably withheld. CubeSmart Extra Space Storage, Inc., LifeStorage, Inc. and their respective operating
subsidiaries are approved by Agent as managers of the Borrowing Base Properties, provided that the form of Management Agreement
remains subject to Agent’s reasonable approval. The Agent may condition any approval of a new or replacement manager (even
with an approved manager) engaged by the Borrower or a Subsidiary Guarantor or a new Management Agreement with respect to a Borrowing
Base Property upon the execution and delivery to the Agent of a Subordination of Management Agreement. The Borrower shall not and
shall not permit any Subsidiary Guarantor or any other Subsidiary to increase any management fee payable under a Management Agreement
after the date the applicable Real Estate becomes a Borrowing Base Property without the prior written consent of the Agent, which
consent shall not be unreasonably withheld.

 

§7.13         Leases
of the Property. Neither the Borrower nor any Subsidiary Guarantor will (a) lease all or any portion of a Borrowing Base
Property except upon the form Lease approved by Agent, with such minor modifications thereto as the Borrower may agree to make
in its good faith business judgment based on tenant’s requests), or (b) materially amend, supplement or otherwise modify
or grant any concessions to or waive the performance of any obligations of any tenant under, any now existing or future Lease at
any Borrowing Base Property, or (c) terminate or cancel, or accept the surrender of, or consent to the assignment or subletting
of any new existing or future Lease at any Borrowing Base Property with any tenant, except with respect to (b) and (c) above in
accordance with sound and customary leasing and management principles, including if a tenant defaults or becomes delinquent.

 

§7.14         Business
Operations. REIT and its Subsidiaries shall operate their respective businesses in substantially the same manner and in substantially
the same fields and lines of business as such business is now conducted and such other lines of business that are reasonably related
or incidental thereto and in compliance with the terms and conditions of this Agreement and the Loan Documents. Neither REIT nor
the Borrower will, or will permit any of their respective Subsidiaries to, directly or indirectly, engage in any line of business
other than the ownership, operation and, subject to §8.3, development of Self-Storage Properties and the making and holding
of Mortgage Loans and Other Loans and other Permitted Investments.

 

§7.15         Registered
Servicemark. Without prior written notice to the Agent, except with respect to the trademarks, tradenames, servicemarks or
logos listed on Schedule 6.6 hereto, none of the Borrowing Base Properties shall be owned or operated by the Borrower
or any Guarantor under any trademark, tradename, servicemark or logo. In the event that any of the Borrowing Base Properties shall
be owned or operated under any tradename, trademark, servicemark or logo, not listed on Schedule 6.6, the Borrower
or the applicable Guarantor shall enter into such agreements with the Agent in form and substance reasonably satisfactory to the
Agent, as the Agent may reasonably require to grant the Agent a perfected first priority security interest therein and to grant
to the Agent or any successful bidder at a foreclosure sale of such Borrowing Base Property the right and/or license to continue
operating such Borrowing Base Property under such tradename, trademark, servicemark or logo as determined by the Agent.

 

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§7.16     Ownership
of Real Estate. Without the prior written consent of the Agent, all Real Estate and all interests (whether direct or indirect)
of REIT or the Borrower in any Real Estate, Mortgage Loan or Other Loan assets now owned or leased or acquired or leased after
the date hereof shall be owned or leased directly by the Borrower or a Wholly-Owned Subsidiary of the Borrower; provided,
however that the Borrower shall be permitted to own or lease interests in Real Estate, Mortgage Loans or Other Loans through
non-Wholly-Owned Subsidiaries and Unconsolidated Affiliates of the Borrower as permitted by §8.3(l).

 

§7.17     Distributions
of Income to the Borrower. The Borrower shall cause all of its Subsidiaries (subject to the terms of any loan documents under
which such Subsidiary is the borrower) to promptly distribute to the Borrower (but not less frequently than once each calendar
quarter, unless otherwise approved by the Agent), whether in the form of dividends, distributions or otherwise, all profits, proceeds
or other income relating to or arising from its Subsidiaries’ use, operation, financing, refinancing, sale or other disposition
of their respective assets and properties after (a) the payment by each Subsidiary of its debt service, operating expenses,
capital improvements and leasing commissions for such quarter and (b) the establishment of reasonable reserves for the payment
of operating expenses not paid on at least a quarterly basis and capital improvements and tenant improvements to be made to such
Subsidiary’s assets and properties approved by such Subsidiary in the course of its business consistent with its past practices.

 

§7.18     Plan
Assets. The Borrower, the Guarantors and each of their respective Subsidiaries will do, or cause to be done, all things necessary
to ensure that none of its Real Estate will be deemed to be Plan Assets at any time.

 

§7.19     Borrowing
Base Assets.

 

(a)          The
Eligible Real Estate and Borrowing Base Loans included in the calculation of the Borrowing Base Availability shall at all times
satisfy all of the following conditions:

 

(i)          such
Real Estate that is a Borrowing Base Property shall be Eligible Real Estate, and the Eligible Real Estate shall be owned one hundred
percent (100%) in fee simple by a Wholly-Owned Subsidiary of Borrower that is a Subsidiary Guarantor, in each case free and clear
of all Liens and negative pledges other than the Liens permitted in §8.2(i) and (ix), and other Liens approved in writing
by Agent, and such Eligible Real Estate shall not have applicable to it any restriction on the sale, pledge, transfer, mortgage
or assignment of such property (including any restrictions contained in any applicable organizational documents);

 

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(ii)         the
only asset of such Subsidiary Guarantor shall be Eligible Real Estate or Borrowing Base Loan, as applicable, included in the calculation
of the Borrowing Base Availability;

 

(iii)        no
Person other than the Borrower has any direct or indirect ownership of any legal, equitable or beneficial interest in such Subsidiary
Guarantor, and no direct or indirect ownership or other interests or rights in any such Subsidiary Guarantor shall be subject to
any Lien except any Lien in favor of Agent pursuant to the Loan Documents;

 

(iv)        none
of the Eligible Real Estate that is a Borrowing Base Property shall be subject to any condemnation proceeding that in any event
would give rise to a materially adverse effect as to the value, use of, operation of or ability to sell or finance such property,
and such property shall be in compliance with federally mandated flood insurance requirements (including the maintenance of flood
insurance if all or any portion of any Building is located within a federally designated flood hazard zone);

 

(v)         such
Eligible Real Estate is (1) managed by a Manager approved by the Agent; and (2) operated under a Management Agreement reasonably
satisfactory to the Agent; and

 

(vi)        if
such Borrowing Base Asset is a Borrowing Base Loan, such Borrowing Base Loan shall at all times satisfy all of the following conditions:

 

(A)         such
Borrowing Base Loan is secured by real estate that satisfies the requirements of clauses (b), (c), (d), (g), (h) and (i) of the
definition of Eligible Real Estate;

 

(B)         the
real estate subject to the Borrowing Base Loan shall be owned one hundred percent (100%) in fee simple by the Collateral Borrower,
free and clear of all Liens other than the Liens securing the Borrowing Base Loans and other Liens approved in writing by Agent,
and except as approved in writing by the Required Lenders, the Borrower, the Guarantors and their respective Subsidiaries and Affiliates
shall have no direct or indirect interest in the Collateral Borrower (except for a Profits Participation); provided that in connection
with the exercise by Borrower of its right to purchase all of the equity interests in the Collateral Borrower not owned by Borrower
or its Subsidiaries, Borrower shall be permitted to own all of the equity interests in the Collateral Borrower for a period of
not more than ninety (90) days, as such period may be extended by the Agent in its sole discretion, provided that Borrower has
delivered to Agent written notice of the acquisition of such equity interests not less than ten (10) Business Days prior to such
acquisition;

 

(C)         none
of the real estate securing the Borrowing Base Loan shall be subject to any condemnation proceeding that in any event would give
rise to a material adverse effect as to the value, cash flow, use of, operation of or ability to sell or finance such property;

 

(D)         Borrower’s
or the applicable Subsidiary Guarantor’s entire interest in the Borrowing Base Loan shall have been assigned to Agent pursuant
to the Security Documents and Agent shall have a perfected first priority security interest therein. Without limiting the foregoing,
no interest in any Borrowing Base Loan Document shall have been participated, pledged or assigned to any Person other than the
pledge to Agent;

 

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(E)         the
Borrowing Base Loan Documents shall be owned one hundred percent (100%) by the Borrower or a Subsidiary Guarantor free and clear
of all Liens, other than the Lien in favor of Agent for the benefit of the Lenders and the Lender Hedge Providers, and of any claims
or rights of participation of any other Person, and free of any restrictions on transfer, assignment or pledge thereof;

 

(F)         the
Borrowing Base Loan Documents for Borrowing Base Loans shall be in form and substance reasonably satisfactory to Agent;

 

(G)         the
Borrowing Base Loan shall not be a Defaulted Loan or a Delinquent Loan;

 

(H)         except
as approved by Agent, the Collateral Borrower shall have no Indebtedness other than the Borrowing Base Loan and other Indebtedness
applicable to the real estate and of the type permitted under §8.1(c) or (d) and there shall be no so-called “mezzanine
loan” secured by the Equity Interests in such Collateral Borrower. Notwithstanding the foregoing, a Mezzanine Loan shall
be permitted provided that such loan is pledged to Agent as additional Collateral pursuant to the Assignment of Documents and is
subject to a Subordination and Standstill Agreement;

 

(I)         the
Borrowing Base Loan and Borrowing Base Loan Documents shall satisfy each other condition in this Agreement and the other Loan Documents
applicable thereto;

 

(J)         the
real estate asset that secures such Borrowing Base Loan is open and in lease-up and has received a certificate of occupancy or
temporary certificate of occupancy from the local government agency or building department if required pursuant to Applicable Law;

 

(K)         the
Borrowing Base Loan has adequate unfunded capacity based upon Borrower’s usual and customary underwriting as reasonably approved
by Agent to cover estimated carry costs, interest payments and tenants costs to reach stabilization; and

 

(L)         the
underlying Borrowing Base Loan must require the Collateral Borrower to provide financial reports to allow calculation and testing
of the Borrowing Base Availability.

 

(b)          In
the event that all or any material portion of any Eligible Real Estate included in the calculation of the Borrowing Base Availability
shall be damaged in any material respect or taken by condemnation, then such property shall no longer be included in the calculation
of the Borrowing Base Availability unless and until (i) any damage to such real estate is repaired or restored, such real
estate becomes fully operational and the Agent shall receive evidence satisfactory to the Agent of the value of such real estate
following such repair or restoration (both at such time and prospectively) or (ii) the Agent shall receive evidence satisfactory
to the Agent (which evidence may include the availability of rent loss and other insurance) that the value of such real estate
shall not be materially adversely affected by such damage or condemnation. In the event that such damage or condemnation only partially
affects such Eligible Real Estate included in the calculation of the Borrowing Base Availability, then the Agent may in good faith
reduce the Borrowing Base Availability attributable thereto based on such damage until such time as the Agent receives evidence
satisfactory to the Agent that the value of such real estate (both at such time and prospectively) shall no longer be materially
adversely affected by such damage or condemnation.

 

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(c)          Upon
any asset ceasing to qualify to be included in the calculation of the Borrowing Base Availability, such asset shall no longer be
included in the calculation of the Borrowing Base Availability unless otherwise approved in writing by the Required Lenders. Within
five (5) Business Days after becoming aware of any such disqualification, the Borrower shall deliver to the Agent a certificate
reflecting such disqualification, together with the identity of the disqualified asset, a statement as to whether any Default or
Event of Default arises as a result of such disqualification, and a calculation of the Borrowing Base Availability attributable
to such asset. Simultaneously with the delivery of the items required pursuant above, the Borrower shall deliver to the Agent an
updated Borrowing Base Certificate demonstrating, after giving effect to such removal or disqualification, compliance with the
conditions and covenants contained in §§5.4, 7.19 and 9.1.

 

(d)          Upon
the inclusion of a Borrowing Base Property, Borrower shall designate whether such Borrowing Base Property shall be Stabilized Real
Estate Collateral or Non-Stabilized Real Estate Collateral. Provided no Default or Event of Default would arise, Borrower may at
any time designate Non-Stabilized Real Estate Collateral to be Stabilized Real Estate Collateral by delivery of written notice
to Agent together with an updated Borrowing Base Certificate and a calculation of Borrowing Base Availability. In no event may
a Borrowing Base Property that is Stabilized Real Estate Collateral be designated as Non-Stabilized Real Estate Collateral.

 

§7.20     Assignment
of Interest Rate Protection. The Borrower shall, and shall cause the Guarantors and their respective Wholly-Owned Subsidiaries
to, utilize one or more Lender Hedge Providers to provide any interest rate cap, swap, collar or other interest rate protection
agreement (an “Interest Hedge”) with respect to the Obligations (provided that for the avoidance of doubt, the
Borrower, the Guarantors and their respective Subsidiaries shall not be required to obtain an Interest Hedge). In the event that
a Lender Hedge Provider, provides an Interest Hedge, then as a condition to the obligations of Borrower with respect thereto constituting
Hedge Obligations for the purposes of the Loan Documents, Borrower shall execute and deliver to Agent the Assignment of Hedge,
such legal opinions as to Borrower, and consents to and acknowledgments of such pledge by the provider of the Interest Hedge as
Agent may reasonably require. For the avoidance of doubt, unless the provisions of this §7.20 are complied with, no Lender
Hedge Provider shall have any right or benefit under or from the Loan Documents or the Collateral.

 

§7.21     Sanctions
Laws and Regulations. The Borrower shall not, directly or indirectly, use the proceeds of the Loans or any Letter of Credit
or lend, contribute or otherwise make available such proceeds to any Guarantor, Subsidiary, Unconsolidated Affiliate or other Person
(i) to fund any activities or business of or with any Designated Person, or in any country or territory, that at the time of such
funding is itself the subject of territorial sanctions under applicable Sanctions Laws and Regulations, (ii) in any manner that
would result in a violation of applicable Sanctions Laws and Regulations by any party to this Agreement, or (iii) in any manner
that would cause the Borrower, the Guarantors or any of their respective Subsidiaries to violate the United States Foreign Corrupt
Practices Act. None of the funds or assets of the Borrower or Guarantors that are used to pay any amount due pursuant to this Agreement
shall constitute funds obtained from transactions with or relating to Designated Persons or countries which are themselves the
subject of territorial sanctions under applicable Sanctions Laws and Regulations. Borrower shall maintain policies and procedures
designed to promote and achieve compliance with Sanctions Laws and Regulations.

 

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§7.22     Beneficial
Ownership. Promptly following any change in beneficial ownership of the Borrower that would render any statement in an existing
Beneficial Ownership Certification untrue or inaccurate, Borrower shall furnish to the Agent (for further delivery by the Agent
to the Lenders in accordance with its customary practice) an updated Beneficial Ownership Certification for the Borrower.

 

§8.         NEGATIVE
COVENANTS.

 

The Borrower covenants
and agrees that, so long as any Loan, Note or Letter of Credit is outstanding or any of the Lenders has any obligation to make
any Loans or issue any Letter of Credit:

 

§8.1       Restrictions
on Indebtedness. The Borrower will not, and will not permit any Guarantor or their respective Subsidiaries to, create, incur,
assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness other than:

 

(a)          Indebtedness
to the Lenders arising under any of the Loan Documents;

 

(b)          Indebtedness
to the Lender Hedge Providers in respect of any Hedge Obligations;

 

(c)          current
liabilities of the Borrower, the Guarantors or their respective Subsidiaries incurred in the ordinary course of business but not
incurred through (i) the borrowing of money, or (ii) the obtaining of credit except for credit on an open account basis customarily
extended and in fact extended in connection with normal purchases of goods and services;

 

(d)          Indebtedness
in respect of taxes, assessments, governmental charges or levies and claims for labor, materials and supplies to the extent that
payment therefor shall not at the time be required to be made in accordance with the provisions of §7.8;

 

(e)          Indebtedness
in respect of judgments only to the extent, for the period and for an amount not resulting in an Event of Default;

 

(f)          endorsements
for collection, deposit or negotiation and warranties of products or services, in each case incurred in the ordinary course of
business;

 

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(g)          subject
to the provisions of §9, Non-Recourse Indebtedness; and

 

(h)          subject
to the provisions of §9, Recourse Indebtedness of the REIT, Borrower and its Subsidiaries that are not Subsidiary Guarantors
or direct or indirect owners of a Subsidiary Guarantor, provided that the aggregate amount of such Recourse Indebtedness shall
not at any time exceed ten percent (10%) of Gross Asset Value, provided further that, except as provided in this §8.1(h) below
any such Indebtedness is provided by a Person that is a Lender at the time such Indebtedness is created, incurred, assumed or guaranteed;
provided further that Borrower may have Recourse Indebtedness to Martni Mac Partners Sand Lake, LLC pursuant to that Lease Guaranty
executed effective November 15, 2017 in the amount of up to $1,750,000.00 with respect to “Rent” plus any “Additional
Rent” (as such terms are defined in such Lease Guaranty).

 

Notwithstanding the
foregoing or anything else in this Agreement to the contrary, (i) none of the Indebtedness described in §8.1(g) or (h) above
shall have any of the Borrowing Base Assets or any interest therein or any direct or indirect ownership interest in the Borrower
or any Subsidiary Guarantor as collateral, a borrowing base, asset pool or any similar form of credit support for such Indebtedness,
(ii) none of the Subsidiary Guarantors shall create, incur, assume, guarantee or be or remain liable, contingently or otherwise,
with respect to any Indebtedness (including, without limitation, pursuant to any conditional or limited guaranty or indemnity agreement
creating liability with respect to Non-Recourse Exclusions), other than Indebtedness described in §8.1(a), 8.1(b), 8.1(c),
8.1(d) 8.1(e) and 8.1(f), (iii) [reserved] and (iv) none of the Borrower, the Guarantors or any of their Subsidiaries shall create,
incur, assume, guarantee or be or remain liable, contingently or otherwise, with respect to any Indebtedness secured by Equity
Interests or rights to Distributions (so-called “mezzanine financing”), structurally subordinated Indebtedness or second
priority Liens.

 

§8.2       Restrictions
on Liens, Etc. The Borrower will not, and will not permit any Guarantor or their respective Subsidiaries to (a) create
or incur or suffer to be created or incurred or to exist any lien, security title, encumbrance, mortgage, deed of trust, security
deed, pledge, negative pledge, charge, restriction or other security interest of any kind upon any of their respective property
or assets of any character whether now owned or hereafter acquired, or upon the income or profits therefrom; (b) transfer
any of their property or assets or the income or profits therefrom for the purpose of subjecting the same to the payment of Indebtedness
or performance of any other obligation in priority to payment of its general creditors; (c) acquire, or agree or have an option
to acquire, any property or assets upon conditional sale or other title retention or purchase money security agreement, device
or arrangement (or any financing lease having substantially the same economic effect as any of the foregoing); (d) suffer
to exist for a period of more than forty-five (45) days after the same shall have been incurred any Indebtedness or claim or demand
against any of them that if unpaid could by law or upon bankruptcy or insolvency, or otherwise, be given any priority whatsoever
over any of their general creditors; (e) sell, assign, pledge or otherwise transfer any accounts, contract rights, general
intangibles, chattel paper or instruments, with or without recourse; (f) in the case of securities, create or incur or suffer
to be created or incurred any purchase option, call or similar right with respect to such securities; or (g) incur or maintain
any obligation to any holder of Indebtedness of any of such Persons which prohibits the creation or maintenance of any lien securing
the Obligations (collectively, “Liens”); provided that notwithstanding anything to the contrary contained
herein, the Borrower, any Guarantor or any such Subsidiary may create or incur or suffer to be created or incurred or to exist:

 

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(i)          Liens
on properties to secure taxes, assessments and other governmental charges (excluding any Lien imposed pursuant to any of the provisions
of ERISA or pursuant to any Environmental Laws) or claims for labor, material or supplies incurred in the ordinary course of business
in respect of obligations not then delinquent or which are being contested as permitted under this Agreement;

 

(ii)         Liens
on assets other than (A) the Collateral or (B) any direct or indirect interest of the Borrower, any Guarantor or any Subsidiary
of the Borrower in any Guarantor, in respect of judgments permitted by §8.1(e);

 

(iii)        deposits
or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pensions
or other social security obligations;

 

(iv)        encumbrances
on properties other than Borrowing Base Properties consisting of easements, rights of way, zoning restrictions, leases and other
occupancy agreements, restrictions on the use of real property and defects and irregularities in the title thereto, landlord’s
or lessor’s liens under leases to which the Borrower or a Subsidiary of such Person is a party, and other minor non-monetary
liens or encumbrances none of which interferes materially with the use of the property affected in the ordinary conduct of the
business of the Borrower or any such Subsidiary, which defects do not individually or in the aggregate have a Material Adverse
Effect;

 

(v)         liens
on Real Estate (but excluding (A) the Collateral and (B) any direct or indirect interest of the Borrower in any Subsidiary Guarantor)
to secure Indebtedness of Subsidiaries of the Borrower that are not Subsidiary Guarantors or owners of interests in Subsidiary
Guarantors permitted by §8.1(g) and (h);

 

(vi)        rights
of setoff or bankers’ liens upon deposits of cash in favor of banks or other depository institutions, solely to the extent
incurred in connection with the maintenance of such deposit accounts in the ordinary course of business;

 

(vii)       Liens
of capitalized leases on the property leased thereby;

 

(viii)      Liens
in favor of the Agent and the Lenders under the Loan Documents to secure the Obligations and the Hedge Obligations;

 

(ix)         Leases,
liens and encumbrances on a Borrowing Base Property reflected in the Title Policy approved by Agent;

 

(x)          Liens
securing the performance of bids, trade contracts (other than borrowed money), leases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; and

 

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(xi)         Liens
against the ownership interest of Borrower or any Guarantor in an Unconsolidated Affiliate created pursuant to the terms of the
applicable organizational agreements; and

 

(xii)        Liens
securing assessments payable to a property owners association or similar entity.

 

Notwithstanding anything
in this Agreement to the contrary, (A) no Guarantor shall create or incur or suffer to be created or incurred or to exist any Lien
other than Liens contemplated in (i) with respect to any Subsidiary Guarantor that directly or indirectly owns a Borrowing
Base Asset, §§8.2(i), 8.2(vi), 8.2(viii), and 8.2(ix), and (ii) with respect to REIT, §§8.2(i) and
8.2(vi), and (B) neither Borrower, any Guarantor nor any of their respective Subsidiaries shall grant any Liens secured by Equity
Interests, any distributions or rights to cash flow or any other rights or interests relating thereto except for any Liens granted
to Agent under the Loan Documents.

 

§8.3       Restrictions
on Investments. Neither the Borrower will, nor will it permit any Guarantor or any of its Subsidiaries to, make or permit to
exist or to remain outstanding any Investment except Investments in:

 

(a)          marketable
direct or guaranteed obligations of the United States of America that mature within one (1) year from the date of purchase by the
REIT or its Subsidiary;

 

(b)          marketable
direct obligations of any of the following: Federal Home Loan Mortgage Corporation, Student Loan Marketing Association, Federal
Home Loan Banks, Federal National Mortgage Association, Government National Mortgage Association, Bank for Cooperatives, Federal
Intermediate Credit Banks, Federal Financing Banks, Export-Import Bank of the United States, Federal Land Banks, or any other agency
or instrumentality of the United States of America;

 

(c)          demand
deposits, certificates of deposit, bankers acceptances and time deposits of United States banks having total assets in excess of
$100,000,000; provided, however, that the aggregate amount at any time so invested with any single bank having total
assets of less than $1,000,000,000 will not exceed $200,000;

 

(d)          commercial
paper assigned the highest rating by two (2) or more national credit rating agencies and maturing not more than ninety (90) days
from the date of creation thereof;

 

(e)          bonds
or other obligations having a short term unsecured debt rating of not less than A-1+ by S&P and P-1+ by Moody’s and having
a long term debt rating of not less than A by S&P and A1 by Moody’s issued by or by authority of any state of the United
States, any territory or possession of the United States, including the Commonwealth of Puerto Rico and agencies thereof, or any
political subdivision of any of the foregoing;

 

(f)          repurchase
agreements having a term not greater than ninety (90) days and fully secured by securities described in the foregoing §§8.3(a),
8.3(b) or 8.3(c) with banks described in the foregoing §8.3(c) or with financial institutions or other corporations having
total assets in excess of $500,000,000; and

 

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(g)          shares
of so-called “money market funds” registered with the SEC under the Investment Company Act of 1940 which maintain a
level per-share value, invest principally in investments described in the foregoing §§8.3(a) through 8.3(f) and
have total assets in excess of $50,000,000.

 

(h)          the
acquisition of fee or leasehold interests by the Borrower or its Subsidiaries in (i) Real Estate which is utilized for Self-Storage
Properties located in the United States or the District of Columbia and businesses and investments incidental thereto, and (ii) subject
to the restrictions set forth in this §8.3, the acquisition of Land Assets to be developed for the foregoing purpose;

 

(i)          Investments
by the Borrower in Subsidiaries that are directly or indirectly one hundred percent (100%) owned by the Borrower, which in turn
own Investments permitted by this §8.3;

 

(j)          Investments
in Land Assets, provided that the aggregate Investment pursuant to the §8.3(j) shall not at any time exceed five percent (5%)
of Gross Asset Value;

 

(k)          Investments
in Mortgage Loans secured by properties of the type described in §8.3(h)(i);

 

(l)          Investments
in non-Wholly-Owned Subsidiaries and Unconsolidated Affiliates, which in turn own Investments permitted by this §8.3, provided
that the aggregate Investment pursuant to this §8.3(l) shall not at any time exceed twenty percent (20%) of Gross Asset Value;

 

(m)          Investments
in Development Properties for properties of the type described in §8.3(h)(i), provided that the aggregate Investment pursuant
to this §8.3(m) shall not at any time exceed ten percent (10%) of Gross Asset Value. For the avoidance of doubt, this §8.3(m)
shall not prohibit the Borrower’s ability to make additional investments in Mortgage Loans in the ordinary course of business;

 

(n)          Investments
in Other Loans, provided that the maximum aggregate amount of Other Loans that may be made or committed shall not at any time exceed
five percent (5%) of Gross Asset Value;

 

(o)          Investments
in preferred equity in Persons owning, and mezzanine loans secured by or related to, properties of the type described in §8.3(h)(i),
provided that the aggregate Investment pursuant to this §8.3(o) shall not at any time exceed twenty percent (20%) of Gross
Asset Value (provided, however, that any mezzanine loan that is the senior secured indebtedness with respect to real estate by
virtue of there being no mortgage loan shall for the purposes of this §8.3 be considered a Mortgage Loan); and

 

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(p)          Investments
in securities of Persons whose primary business is the ownership and operation of Self-Storage Properties, provided that the aggregate
Investment pursuant to this §8.3(p) shall not at any time exceed five percent (5%) of Gross Asset Value.

 

Notwithstanding the foregoing, in no event
shall the aggregate value of the holdings of the Borrower, any Guarantor and their Subsidiaries in the Investments described in
§8.3(j), (l), (m), (n), (o) and (p) at any time exceed thirty percent (30%) of Gross Asset Value at any time.

 

For the purposes of
this §8.3, (x) the Investment of REIT or any of its Subsidiaries in any non-Wholly-Owned Subsidiaries and Unconsolidated Affiliates
will equal (without duplication) the sum of (i) such Person’s Equity Percentage of their non-Wholly-Owned Subsidiaries’
and Unconsolidated Affiliates’ Investments valued in the manner set forth for the determination of Gross Asset Value, or
if not included therein, valued at the GAAP book value, and (y) Investments in Development Properties shall be based on costs (including
land) incurred to the date of determination in accordance with GAAP.

 

(q)          Investments
in Profits Participations.

 

§8.4       Merger,
Consolidation. Other than with respect to or in connection with any disposition permitted under §8.8, the Borrower will
not, nor will it permit the Guarantors or any of their respective Subsidiaries to, become a party to any dissolution, liquidation,
disposition of (including, without limitation, by way of an LLC Division) all or substantially all of its assets or business, merger,
reorganization, consolidation or other business combination or agree to effect any asset acquisition, stock acquisition or other
acquisition individually or in a series of transactions which may have a similar effect as any of the foregoing, in each case without
the prior written consent of the Required Lenders. Notwithstanding the foregoing, so long as no Default or Event of Default has
occurred and is continuing immediately before and after giving effect thereto, the following shall be permitted without the consent
of the Agent or any Lender: (i) the merger or consolidation of one or more of the Subsidiaries of the Borrower (other than
any Subsidiary that is a Guarantor) with and into the Borrower (it being understood and agreed that in any such event the Borrower
will be the surviving Person), (ii) the merger or consolidation of two or more Subsidiaries of the Borrower; provided
that no such merger or consolidation shall involve any Subsidiary that is a Guarantor unless such Guarantor will be the surviving
Person, (iii) the liquidation or dissolution of any Subsidiary of the Borrower that does not own any assets so long as such
Subsidiary is not a Guarantor (or if such Subsidiary is a Guarantor, so long as the Borrower and such Subsidiary comply with the
provisions of §5.5 and §5.6). (iv) the disposal of Real Estate in the ordinary course of business and for fair value;
provided that if such Real Estate is a Borrowing Base Property, Borrower shall have complied with the terms of this Agreement;
and (v) (A) a merger of a Person with Borrower, so long as Borrower is the surviving entity, (B) a merger of an entity that has
elected to obtain and qualifies for REIT Status and which is the general partner or other owner of a Person simultaneously merging
with Borrower or a Subsidiary of Borrower, with the REIT, so long as the REIT is the surviving entity and the provisions of this
Agreement are not violated, in each instance so long as (1) Borrower shall have given the Agent and the Lenders at least 30 days’
prior written notice of such consolidation or merger; (2) REIT and Borrower shall have provided to the Agent and the Lenders all
documentation and other information that the Agent (on its own behalf or on behalf of any Lender) requests in order to comply with
its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations, including
the Patriot Act; (3) the Agent has not advised Borrower that such merger or consolidation would result in a violation of any concentration
or lending limits applicable by law or regulation applicable to the Agent or any such Lender; (4) immediately prior thereto,
and immediately thereafter and after giving effect thereto, all representations and warranties in the Loan Documents shall be deemed
to be made and repeated and no Default or Event of Default has occurred or would result therefrom; (5) in the case of a merger
with REIT or Borrower, such Person was organized under the laws of the United States of America or one of its states; (6) such
merger is completed as a result of negotiations with the approval of the board of directors or similar body of such Person and
is not a so called “hostile takeover”; and (7) at the time of consummation of the merger or consolidation, a Borrower
shall have delivered to the Agent for distribution to each of the Lenders a Compliance Certificate, calculated on a pro forma basis
evidencing the continued compliance by the Borrower and the Guarantors with the terms and conditions of this Agreement and the
other Loan Documents, after giving effect to such consolidation or merger. Nothing in this Section shall be deemed to prohibit
the leasing of all or portions of Real Estate in the ordinary course of business for occupancy by the tenants thereunder, or (ii)
the sale of Real Estate in the ordinary course of Borrower’s business for fair value on an arms-length basis and in accordance
with the terms and conditions of this Agreement. Nothing in this §8.4 shall prohibit the dissolution of a Subsidiary which
has disposed of its assets in accordance with this Agreement. A Subsidiary of the Borrower may sell all of its assets (and may
effectuate such sale by merger or consolidation with another Person, with such other Person being the surviving entity) subject
to compliance with the terms of this Agreement (including, without limitation, §§5.4 and 8.8), and after any such permitted
sale, may dissolve.

 

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§8.5       Sale
and Leaseback. The Borrower will not, and will not permit its Subsidiaries, to enter into any arrangement, directly or indirectly,
whereby the Borrower or any such Subsidiary shall sell or transfer any Real Estate owned by it in order that then or thereafter
the Borrower or any such Subsidiary shall lease back such Real Estate without the prior written consent of the Agent, such consent
shall not be unreasonably withheld.

 

§8.6       Compliance
with Environmental Laws. None of the Borrower nor any Guarantor will, nor will any of them permit any of their respective Subsidiaries
or any other Person to, do any of the following: (a) use any of the Real Estate or any portion thereof as a facility for the
handling, processing, storage or disposal of Hazardous Substances, except for quantities of Hazardous Substances used in the ordinary
course of operating Self-Storage Properties as permitted under this Agreement and in material compliance with all applicable Environmental
Laws, (b) cause or permit to be located on any of the Real Estate any underground tank or other underground storage receptacle
for Hazardous Substances except in compliance with Environmental Laws, (c) generate any Hazardous Substances on any of the
Real Estate except in compliance with Environmental Laws, (d) conduct any activity at any Real Estate or use any Real Estate
in any manner that could reasonably be contemplated to cause a Release of Hazardous Substances on, upon or into the Real Estate
or any surrounding properties or any threatened Release of Hazardous Substances which could reasonably be expected to give rise
to liability under CERCLA or any other Environmental Law, or (e) directly or indirectly transport or arrange for the transport
of any Hazardous Substances (except in compliance with all Environmental Laws), except (1) with respect to any Real Estate that
is not a Borrowing Base Property, where any such use, generation, conduct or other activity has not had and could not reasonably
be expected to have a Material Adverse Effect and (2) with respect to any Borrowing Base Property included in the calculation of
Borrowing Base Availability where any such use, generation, conduct or other activity has not had and could not reasonably be expected,
when taken with other matters covered by §6.20 and this §8.6, to result in liability, clean-up, remediation, containment,
correction or other costs to Borrower or any Guarantor individually in excess of $500,000.00 or in the aggregate with other Borrowing
Base Properties in excess of $2,000,000.00, or materially adversely affect the operation of or ability to use such property; provided,
that Borrower shall diligently and continuously pursue corrective, remedial and other actions to bring such Borrowing Base Property
or Properties into compliance with Environmental Laws and to eliminate such liability.

 

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The Borrower and the
Guarantors shall, and shall cause their respective Subsidiaries to:

 

(i)          in
the event of any change in Environmental Laws after the date of this Agreement governing the assessment, release or removal of
Hazardous Substances, take all reasonable action to confirm that no Hazardous Substances are or ever were Released or disposed
of on the Borrowing Base Properties in violation of applicable Environmental Laws; and

 

(ii)         if
any Release or disposal of Hazardous Substances which any Person may be legally obligated to contain, correct or otherwise remediate
or which may otherwise expose it to liability shall occur or shall have occurred on the Borrowing Base Properties (including, without
limitation, any such Release or disposal occurring prior to the acquisition or leasing of such Borrowing Base Property by the Borrower
or any Guarantor), the Borrower shall, after obtaining knowledge thereof, cause the prompt containment and removal of such Hazardous
Substances and remediation of the Borrowing Base Properties in full compliance with all applicable Environmental Laws; provided,
that each of the Borrower and a Guarantor shall be deemed to be in compliance with Environmental Laws for the purpose of this clause
(ii) so long as it or a responsible third party with sufficient financial resources is taking reasonable action to remediate
or manage any event of noncompliance to the reasonable satisfaction of the Agent and no action shall have been commenced or filed
by any enforcement agency. The Agent may engage its own Environmental Engineer to review the environmental assessments and the
compliance with the covenants contained herein.

 

(iii)        At
any time after an Event of Default shall have occurred hereunder and is continuing, the Agent may at its election (and will at
the request of the Required Lenders) obtain such environmental assessments of any or all of the Borrowing Base Properties prepared
by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (A) whether any Hazardous
Substances are present in the soil or water at or adjacent to any such Borrowing Base Property and (B) whether the use and operation
of any such Borrowing Base Property complies with all Environmental Laws to the extent required by the Loan Documents. Additionally,
at any time that the Agent or the Required Lenders shall have reasonable grounds to believe that a Release or threatened Release
of Hazardous Substances which any Person may be legally obligated to contain, correct or otherwise remediate or which otherwise
may expose such Person to liability may have occurred, relating to any Borrowing Base Property, or that any of the Borrowing Base
Properties is not in compliance with Environmental Laws to the extent required by the Loan Documents, the Borrower shall promptly
upon the written request of the Agent obtain and deliver to the Agent such environmental assessments of such Borrowing Base Property
prepared by an Environmental Engineer as may be necessary or advisable for the purpose of evaluating or confirming (A) whether
any Hazardous Substances are present in the soil or water at or adjacent to such Borrowing Base Property and (B) whether the use
and operation of such Borrowing Base Property comply with all Environmental Laws to the extent required by the Loan Documents.
Environmental assessments may include detailed visual inspections of such Borrowing Base Property including, without limitation,
any and all storage areas, storage tanks, drains, dry wells and leaching areas, and the taking of soil samples if recommended by
the engineer or consultant, as well as such other investigations or analyses as are reasonably necessary or appropriate for a complete
determination of the compliance of such Borrowing Base Property and the use and operation thereof with all applicable Environmental
Laws. All environmental assessments contemplated by this §8.6 shall be at the sole cost and expense of the Borrower.

 

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§8.7       Distributions.

 

(a)          The
Borrower shall not pay any Distribution to the partners, members or other owners of the Borrower and REIT shall not pay any Distribution
to its common stockholders or other common equity holders, to the extent that (i) from the date of this Agreement through and including
June 29, 2021 the aggregate amount of such Distributions paid in any calendar quarter, when added to the aggregate amount of all
other Distributions paid in any given calendar quarter, would be in excess of the greater of (A) $0.35 per quarter per share
of common stock outstanding as of the date of this Agreement (adjusted for stock splits) or (B) seventeen and one-half percent
(17.5%) of such Person’s Adjusted Earnings for such period, and (ii) commencing June 30, 2021 and thereafter the aggregate
amount of such Distributions paid, when added to the aggregate amount of all other Distributions paid in any period of four (4)
consecutive fiscal quarters, exceeds ninety-five percent (95%) of Funds from Operations for such period; provided that the limitations
contained in this §8.7(a) shall not preclude Distributions in an amount equal to the minimum distributions required under
the Code to maintain the REIT Status of REIT, as evidenced by a certification of the principal financial or accounting officer
of REIT containing calculations in detail reasonably satisfactory in form and substance to the Agent. Notwithstanding anything
herein to the contrary, prior to June 29, 2021 the REIT shall not increase its common dividend above its current quarterly per
share amount of $0.35 (adjusted for stock splits) without the prior written approval of the Agent and the Required Lenders, which
approval may be granted or withheld in their sole and absolute discretion, and the REIT shall not repurchase, redeem or otherwise
retire shares of common stock (with the exception of repurchase or retirement of shares of common stock for the purpose of satisfying
tax withholdings or forfeitures on employee restricted stock units) after the date of this Agreement without the prior written
approval of the Agent and the Required Lenders, which approval may be granted or withheld in their sole and absolute discretion.
For the purposes of calculating compliance with §8.7(a)(ii), Funds from Operations and Distributions shall be calculated (i)
for the fiscal quarter ending June 30, 2021, by multiplying the Funds from Operations and Distributions for the period from April
1, 2021 through and including June 30, 2021, by four (4), (ii) for the fiscal quarter ending September 30, 2021, by multiplying
the Funds from Operations and Distributions for the period from April 1, 2021 through and including September 30, 2021, by two
(2), (iii) for the fiscal quarter ending December 31, 2021, by multiplying the Funds from Operations and Distributions for the
period from April 1, 2021 through and including December 31, 2021, by one and one-third (1.33), and (iv) for each calendar quarter
thereafter, Funds from Operations and Distributions shall be calculated for the prior four (4) consecutive fiscal quarters most
recently ended.

 

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(b)          If
a Default or Event of Default shall have occurred and be continuing, the Borrower and REIT shall make no Distributions to their
respective partners, members or other owners (whether to preferred equity holders, common stockholders, common equity holders,
or otherwise), other than Distributions in an amount equal to the minimum distributions required under the Code to maintain the
REIT Status of the REIT, as evidenced by a certification of the principal financial or accounting officer of the REIT containing
calculations in detail reasonably satisfactory in form and substance to the Agent.

 

(c)          Notwithstanding
the foregoing, at any time when an Event of Default under §§12.1(a) or 12.1(b) shall have occurred, an Event
of Default under §§12.1(g), 12.1(h) or 12.1(i) shall have occurred, or the maturity of the Obligations has
been accelerated, neither the Borrower nor REIT shall make any Distributions (whether to preferred equity holders, common stockholders,
common equity holders, or otherwise) whatsoever, directly or indirectly.

 

§8.8        Asset
Sales. The Borrower will not, and will not permit the Guarantors or their respective Subsidiaries to, sell, transfer or otherwise
dispose of (a) all or substantially all of their assets or (b) any material asset other than pursuant to a bona fide
arm’s length transaction; provided, that a Subsidiary of Borrower may sell, transfer or otherwise dispose of such Subsidiary's
assets in an arm's length transaction, so long as (i) if such asset is a Borrowing Base Asset, then Borrower shall have complied
with §5.4 and (ii) no Default or Event of Default has occurred and is continuing or would result from such transaction.

 

§8.9       Restriction
on Prepayment of Indebtedness. The Borrower and the Guarantors will not, and will not permit their respective Subsidiaries
to, (a) during the existence of any Default or Event of Default, prepay, redeem, defease, purchase or otherwise retire the
principal amount, in whole or in part, of any Indebtedness other than the Obligations; provided, that the foregoing shall
not prohibit (x) the prepayment of Indebtedness which is financed solely from the proceeds of a new loan which would otherwise
be permitted by the terms of §8.1, and (y) the prepayment, redemption, defeasance or other retirement of the principal
of Indebtedness secured by Real Estate which is satisfied solely from the proceeds of a sale of the Real Estate securing such Indebtedness;
or (b) modify any document evidencing any Indebtedness (other than the Obligations) to accelerate the maturity date or required
payments of principal of such Indebtedness during the existence of an Event of Default.

 

§8.10      Zoning
and Contract Changes and Compliance. Neither the Borrower nor any Guarantor shall (a) initiate or consent to any zoning
reclassification of any of its Borrowing Base Properties or seek any variance under any existing zoning ordinance or use or permit
the use of any Borrowing Base Property in any manner that could result in such use becoming a non-conforming use under any zoning
ordinance or any other applicable land use law, rule or regulation or (b) initiate any change in any laws, requirements of governmental
authorities or obligations created by private contracts and Leases which now or hereafter may materially adversely affect the ownership,
occupancy, use or operation of any Borrowing Base Property.

 

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§8.11         Derivatives
Contracts. Neither the Borrower, the Guarantors nor any of their respective Subsidiaries shall contract, create, incur, assume
or suffer to exist any Derivatives Contracts except for Hedge Obligations and interest rate swap, collar, cap or similar agreements
providing interest rate protection and currency swaps and currency options made in the ordinary course of business and permitted
pursuant to §8.1.

 

§8.12         Transactions
with Affiliates. The Borrower shall not, and shall not permit any Guarantor or Subsidiary of any of them to, permit to exist
or enter into, any transaction (including the purchase, sale, lease or exchange of any property or the rendering of any service)
with any Affiliate (but not including the Borrower or any Guarantor), except (i) transactions set forth on Schedule 6.14
attached hereto, (ii) transactions in the ordinary course of business pursuant to the reasonable requirements of the business
of such Person and upon fair and reasonable terms which are no less favorable to such Person than would be obtained in a comparable
arm’s length transaction with a Person that is not an Affiliate, (iii) reasonable and customary fees paid to, and indemnification
arrangements with, members of the board of directors (or similar governing body) of the Borrower or any Guarantor, or the issuance
of directors’ or nominees’ qualifying shares, (iv) compensation and indemnification arrangements for directors (or
equivalent), officers and employees of REIT, Borrower and the Subsidiaries, including retirement, health, option and other benefit
plans, bonuses, performance-based incentive plans, and other similar forms of compensation, the granting of Equity Interests to
directors (or equivalent), officers and employees of REIT, Borrower and the Subsidiaries in connection with the implementation
of any such arrangement, all in the ordinary course of business and in compliance with all Applicable Laws, and the funding of
any such arrangement, and (v) the Internalization.

 

§8.13         Equity
Pledges. Notwithstanding anything in this Agreement to the contrary, neither the Borrower nor the REIT will create or incur
or suffer to be created or incurred any Lien on any legal, equitable or beneficial interest of the REIT in the Borrower or of Borrower
in any Subsidiary Guarantor, including, without limitation, any Distributions or rights to Distributions on account thereof.

 

§8.14         Management
Fees. The Borrower shall not pay, and shall not permit any Guarantor to pay, any management fees or other payments under any
Management Agreement for any Borrowing Base Asset to the Borrower, any other manager that is an Affiliate of the Borrower or any
other manager, in the event that a Default or an Event of Default shall have occurred and be continuing.

 

§8.15         Burdensome
Agreements. Borrower shall not, nor shall Borrower permit any Guarantor or any of their respective Subsidiaries to, directly
or indirectly, enter into any Contractual Obligation (other than this Agreement or any other Loan Document) that limits the ability
(a) of any Subsidiary to make dividend or distribution payments to the Borrower or any Guarantor or to otherwise transfer property
to the Borrower or any Guarantor, or (b) of any Guarantor or any Subsidiary to guarantee the Indebtedness of the Borrower; provided,
however, that (x) this §8.15(a) and (b) shall not prohibit any such restrictions incurred or provided in favor of any holder
of Indebtedness that is permitted under §8.1(g) or (h) and is secured by a Lien on Real Estate (and/or the proceeds thereof)
that is permitted under §8.2(v), solely to the extent any such restriction relates to such Real Estate (and/or the proceeds
thereof), the entity owning such Real Estate or the direct Equity Interests in such entity.

 

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§8.16     Changes
to Organizational Documents. Borrower shall not amend or modify, or permit the amendment or modification of, the articles,
bylaws, limited liability company agreements or other formation or organizational documents of Borrower or any Guarantor in a
manner that would have a material adverse effect on the rights under the Loan Documents of the Agent, the Lenders, the Issuing
Lender or the Swing Loan Lender, without the prior written consent of Agent, not to be unreasonably withheld, conditioned or delayed.

 

§9.         FINANCIAL
COVENANTS.

 

The Borrower covenants
and agrees that, so long as any Loan, Note or Letter of Credit is outstanding or any Lender has any obligation to make any Loans
or issue any Letter of Credit:

 

§9.1       Borrowing
Base Availability. The Borrower shall not at any time permit the outstanding principal balance of the Revolving Credit Loans,
the Swing Loans and the Letter of Credit Liabilities to be greater than the Borrowing Base Availability.

 

§9.2       Consolidated
Total Indebtedness to Gross Asset Value. The Borrower will not at any time permit the ratio of Consolidated Total Indebtedness
to Gross Asset Value (expressed as a percentage) to exceed fifty percent (50%).

 

§9.3       Adjusted
Consolidated EBITDA to Consolidated Fixed Charges. The Borrower will not at any time permit the ratio of Adjusted Consolidated
EBITDA determined for the most recently ended calendar quarter, annualized, to Consolidated Fixed Charges for the most recently
ended calendar quarter, annualized, to be less than the following:

 

	For the Period:	 	Ratio
	 	 	 
	Commencing on the date of this Agreement through and including December 31, 2020	 	1.20 to 1
	 	 	 
	Commencing on January 1, 2021 and continuing through and including December 31, 2022	 	1.30 to 1
	 	 	 
	Commencing on January 1, 2023 and continuing thereafter	 	1.40 to 1

 

§9.4        Minimum
Consolidated Tangible Net Worth. The Borrower will not at any time permit Consolidated Tangible Net Worth to be less than the
sum of (a) $373,611,000.00, plus (b) seventy-five percent (75%) of the sum of any additional Net Offering Proceeds
after the date of this Agreement.

 

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§9.5       Unhedged
Variable Rate Debt. The Borrower will not at any time when the aggregate Outstanding Loans and Outstanding Letter of Credit
Liabilities equals or exceeds $50,000,000.00 permit the Unhedged Variable Rate Debt of the REIT and its Subsidiaries on a Consolidated
basis to exceed forty percent (40%) of Consolidated Total Indebtedness.

 

§9.6        Liquidity.
The Borrower will not at any time (a) commencing with the fiscal quarter ending December 31, 2018 through and including December
31, 2019, permit its Liquidity to be less than the greater of (i) an amount equal to the Future Funding Commitments for the next
three (3) calendar months following the date of determination and (ii) $50,000,000.00, or (b) on and after January 1, 2020 permit
its Liquidity to be less than the greater of (i) an amount equal to the Future Funding Commitments for the next six (6) months
following the date of determination, and (ii) $50,000,000.00.

 

§9.7       Adjusted
Consolidated EBITDA to Debt Service. The Borrower will not at any time permit the ratio of Adjusted Consolidated EBITDA determined
for the most recently ended calendar quarter, annualized, to Debt Service for the most recently ended calendar quarter, annualized,
to be less than 2.00 to 1.

 

§10.       CLOSING
CONDITIONS.

 

The obligation of the
Lenders to close the transaction and to make effective this Agreement shall be subject to the satisfaction of the following conditions
precedent:

 

§10.1     Loan
Documents. Each of the Loan Documents shall have been duly executed and delivered by the respective parties thereto and shall
be in full force and effect. The Agent shall have received a fully executed counterpart of each such document, except that each
Lender shall have received the fully-executed original of its Note.

 

§10.2     Certified
Copies of Organizational Documents. The Agent shall have received from the Borrower and each Guarantor a copy, certified as
of a recent date by the appropriate officer of each State in which such Person is organized and (with respect to any Guarantor
that owns a Borrowing Base Property) in which such Borrowing Base Property is located and a duly authorized officer, partner or
member of such Person, as applicable, to be true and complete, of the partnership agreement, corporate charter or operating agreement
and/or other organizational agreements of the Borrower and each such Guarantor, as applicable and its qualification to do business,
as applicable, as in effect on such date of certification (or with respect to partnership agreements, operating agreements or other
organizational agreements previously delivered to Agent pursuant to the Existing Credit Agreement, a certification that there have
been no changes to such agreements and that they remain in full force and effect).

 

§10.3     Resolutions.
All action on the part of the Borrower and each Guarantor, as applicable, necessary for the valid execution, delivery and performance
by such Person of this Agreement and the other Loan Documents to which such Person is or is to become a party shall have been duly
and effectively taken, and evidence thereof reasonably satisfactory to the Agent shall have been provided to the Agent.

 

§10.4     Incumbency
Certificate; Authorized Signers. The Agent shall have received from the Borrower and each Guarantor an incumbency certificate,
dated as of the Closing Date, signed by a duly authorized officer of such Person and giving the name and bearing a specimen signature
of each individual who shall be authorized to sign, in the name and on behalf of such Person, each of the Loan Documents to which
such Person is or is to become a party.

 

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§10.5      Opinion
of Counsel. The Agent shall have received an opinion addressed to the Lenders and the Agent and dated as of the Closing Date
from counsel to the Borrower and each Guarantor in form and substance reasonably satisfactory to the Agent.

 

§10.6      Payment
of Fees. The Borrower shall have paid to the Agent the fees payable pursuant to §4.2.

 

§10.7      Performance;
No Default. The Borrower and each Guarantor shall have performed and complied with all terms and conditions herein required
to be performed or complied with by it on or prior to the Closing Date, and on the Closing Date there shall exist no Default or
Event of Default.

 

§10.8      Representations
and Warranties. The representations and warranties made by the Borrower and each Guarantor in the Loan Documents or otherwise
made by or on behalf of the Borrower, the Guarantors and their respective Subsidiaries in connection therewith or after the date
thereof shall have been true and correct in all material respects when made and shall also be true and correct in all material
respects on the Closing Date.

 

§10.9      Proceedings
and Documents. All proceedings in connection with the transactions contemplated by this Agreement and the other Loan Documents
shall be reasonably satisfactory to the Agent and the Agent’s counsel in form and substance, and the Agent shall have received
all information and such counterpart originals or certified copies of such documents and such other certificates, opinions, assurances,
consents, approvals or documents as the Agent and the Agent’s counsel may reasonably require.

 

§10.10     Borrowing
Base Qualification Documents. The Borrowing Base Qualification Documents for each Borrowing Base Asset added to the calculation
of the Borrowing Base Availability on the Closing Date shall have been delivered to the Agent at the Borrower’s expense and
shall be in form and substance reasonably satisfactory to the Agent (which for the purposes hereof may include Borrowing Base Qualification
Documents delivered pursuant to the Existing Credit Agreement).

 

§10.11     Compliance
Certificate and Borrowing Base Certificate. The Agent shall have received a Compliance Certificate and a Borrowing Base Certificate
dated as of the date of the Closing Date demonstrating compliance with each of the covenants calculated therein as of the most
recent calendar quarter for which the Borrower has provided financial statements under §6.4.

 

§10.12     Appraised
Values. The Agent shall have determined an As-Is Appraised Value or As-Stabilized Appraised Value, as applicable, for any Borrowing
Base Properties.

 

§10.13     Consents.
The Agent shall have received evidence reasonably satisfactory to the Agent that all necessary stockholder, partner, member or
other consents required in connection with the consummation of the transactions contemplated by this Agreement and the other Loan
Documents have been obtained.

 

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§10.14     Contribution
Agreement. The Agent shall have received an executed counterpart of the Contribution Agreement.

 

§10.15     KYC.
The Borrower and each Guarantor shall have provided to the Agent and the Lenders the documentation and other information requested
by the Agent or any Lender to comply with its “know your customer” requirements and to confirm compliance with all
applicable Sanctions Laws and Regulations, the United States Foreign Corrupt Practices Act and other Applicable Law, and if the
Borrower qualifies as a “legal entity customer” within the meaning of the Beneficial Ownership Regulation, the Borrower
shall have provided to the Agent (for further delivery by the Agent to the Lenders in accordance with its customary practice)
a Beneficial Ownership Certification for the Borrower; in each case delivered at least five Business Days prior to the Closing
Date.

 

§10.16     Insurance.
The Agent shall have received certificates of insurance as required by this Agreement or the other Loan Documents.

 

§10.17      Other.
The Agent shall have reviewed such other documents, instruments, certificates, opinions, assurances, consents and approvals as
the Agent or the Agent’s Special Counsel may reasonably have requested.

 

§11.       CONDITIONS
TO ALL BORROWINGS.

 

The obligations of
the Lenders to make any Loan or issue any Letter of Credit, whether on or after the Closing Date, shall also be subject to the
satisfaction of the following conditions precedent:

 

§11.1       Prior
Conditions Satisfied. All conditions set forth in §10 shall continue to be satisfied as of the date upon which any Loan
is to be made or any Letter of Credit is to be issued.

 

§11.2       Representations
True; No Default. Each of the representations and warranties made by or on behalf of the Borrower, the Guarantors or any of
their respective Subsidiaries contained in this Agreement, the other Loan Documents or in any document or instrument delivered
pursuant to or in connection with this Agreement shall be true and correct in all material respects both as of the date as of which
they were made and shall also be true and correct in all material respects as of the time of the making of such Loan or the issuance
of such Letter of Credit, with the same effect as if made at and as of that time, except to the extent of changes resulting from
transactions or other events permitted by the Loan Documents (it being understood and agreed that any representation or warranty
which by its terms is made as of a specified date shall be required to be true and correct only as of such specified date), and
no Default or Event of Default shall have occurred and be continuing.

 

§11.3       Borrowing
Documents. The Agent shall have received a fully completed Loan Request for such Loan and the other documents and information
as required by §2.7, or a fully completed Letter of Credit Request required by §2.10, as applicable.

 

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§11.4       Endorsement
to Title Policy. To the extent the Agent is a beneficiary of any Mortgage, at such times as the Agent shall determine in its
discretion at any time, to the extent available under Applicable Law, a “date down” endorsement to each Title Policy
indicating no change in the state of title and containing no survey exceptions not approved by the Agent, which endorsement shall,
expressly or by virtue of a proper “revolving credit” clause or endorsement in each Title Policy, increase the coverage
of each Title Policy to the aggregate amount of all Loans advanced and outstanding and Letters of Credit issued and outstanding
(provided that the amount of coverage under an individual Title Policy for an individual Borrowing Base Property need not equal
the aggregate amount of all Loans), or if such endorsement is not available, such other evidence and assurances as the Agent may
reasonably require (which evidence may include, without limitation, an affidavit from the Borrower stating that there have been
no changes in title from the date of the last effective date of the Title Policy).

 

§11.5       Future
Advances Tax Payment. To the extent the Agent is a beneficiary of any Mortgage, as a condition precedent to any Lender’s
obligations to make any Loans available to the Borrower hereunder, the Borrower will pay to the Agent or the Person entitled thereto
any mortgage, recording, intangible, documentary stamp or other similar taxes and charges which the Agent reasonably determines
to be payable as a result of such Loan to any state or any county or municipality thereof in which any of the Borrowing Base Properties
is located, and deliver to the Agent such affidavits or other information which the Agent reasonably determines to be necessary
in connection with such payment in order to insure that the Mortgages on the Borrowing Base Properties located in such state secure
the Borrower’s obligation with respect to the Loans then being requested by the Borrower. The provisions of this §11.5
shall not limit the Borrower’s obligations under other provisions of the Loan Documents, including §15.

 

§12.       EVENTS
OF DEFAULT; ACCELERATION; ETC. 

 

§12.1       Events
of Default and Acceleration. If any of the following events (“Events of Default” or, if the giving of notice
or the lapse of time or both is required, then, prior to such notice or lapse of time, “Defaults”) shall occur:

 

(a)          the
Borrower shall fail to pay any principal of the Loans when the same shall become due and payable, whether at the stated date of
maturity or any accelerated date of maturity or at any other date fixed for payment;

 

(b)          the
Borrower shall fail to pay any interest on the Loans, any reimbursement obligations with respect to the Letters of Credit or any
fees or other sums due hereunder or under any of the other Loan Documents when the same shall become due and payable, whether at
the stated date of maturity or any accelerated date of maturity or at any other date fixed for payment;

 

(c)          the
Borrower shall fail to perform any term, covenant or agreement contained in §9, and with respect to a failure to comply with
§9.1, §9.2 and §9.4 only, such failure shall continue for five (5) Business Days after such occurrence;

 

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(d)          any
of the Borrower, the Guarantors or any of their respective Subsidiaries shall fail to perform any other term, covenant or agreement
contained herein or in any of the other Loan Documents which they are required to perform (other than those specified in the other
subsections or clauses of this §12 or in the other Loan Documents);

 

(e)          any
representation or warranty made by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries in this
Agreement or any other Loan Document, or any report, certificate, financial statement, request for a Loan, Letter of Credit Request,
or in any other document or instrument prepared by or on behalf of the Borrower or a Guarantor and delivered pursuant to or in
connection with this Agreement, any advance of a Loan, the issuance of any Letter of Credit or any of the other Loan Documents
shall prove to have been false in any material respect upon the date when made or deemed to have been made or repeated;

 

(f)          the
Borrower, any Guarantor or any of their respective Subsidiaries shall fail pay when due (including, without limitation, at maturity),
or within any applicable period of grace, any obligation for borrowed money or credit received or other Indebtedness (including
under any Derivatives Contract), or shall fail to observe or perform any term, covenant or agreement contained in any agreement
by which it is bound, evidencing or securing any obligation for borrowed money or credit received or other Indebtedness (including
under any Derivatives Contract) for such period of time as would permit (assuming the giving of appropriate notice if required)
the holder or holders thereof or of any obligations issued thereunder to accelerate the maturity thereof or require the prepayment,
redemption, purchase, termination or other settlement thereof; provided, however, that the events described in this
§12.1(f) shall not constitute an Event of Default unless such failure to perform, together with other failures to perform
as described in §12.1(f), involves singly or in the aggregate (i) any obligations for Indebtedness or under Derivative Contracts
(other than Non-Recourse Indebtedness) or (ii) Non-Recourse Indebtedness totaling $25,000,000.00 or greater;

 

(g)          any
of the Borrower, the Guarantors, or any of their respective Subsidiaries, (i) shall make an assignment for the benefit of
creditors, or admit in writing its general inability to pay or generally fail to pay its debts as they mature or become due, or
shall petition or apply for the appointment of a trustee or other custodian, liquidator or receiver for it or any substantial part
of its assets, (ii) shall commence any case or other proceeding relating to it under any bankruptcy, reorganization, arrangement,
insolvency, readjustment of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, or
(iii) shall take any action to authorize or in furtherance of any of the foregoing;

 

(h)          a
petition or application shall be filed for the appointment of a trustee or other custodian, liquidator or receiver of any of the
Borrower, the Guarantors, or any of their respective Subsidiaries or any substantial part of the assets of any thereof, or a case
or other proceeding shall be commenced against any such Person under any bankruptcy, reorganization, arrangement, insolvency, readjustment
of debt, dissolution or liquidation or similar law of any jurisdiction, now or hereafter in effect, and any such Person shall indicate
its approval thereof, consent thereto or acquiescence therein or such petition, application, case or proceeding shall not have
been dismissed within ninety (90) days following the filing or commencement thereof;

 

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(i)          a
decree or order is entered appointing a trustee, custodian, liquidator or receiver for any of the Borrower, the Guarantors, or
any of their respective Subsidiaries or adjudicating any such Person, bankrupt or insolvent, or approving a petition in any such
case or other proceeding, or a decree or order for relief is entered in respect of any such Person in an involuntary case under
federal bankruptcy laws as now or hereafter constituted;

 

(j)          there
shall remain in force, undischarged, unsatisfied and unstayed, for more than forty-five (45) days, whether or not consecutive,
one (1) or more uninsured or unbonded final judgments against the Borrower, any Guarantor or any of their respective Subsidiaries
that, either individually or in the aggregate, exceed $10,000,000.00 per occurrence or during any twelve (12) month period;

 

(k)          any
of the Loan Documents or the Contribution Agreement shall be disavowed, canceled, terminated, revoked or rescinded by the Borrower
or any Guarantor other than in accordance with the terms thereof or the express prior written agreement, consent or approval of
the Lenders, or any action at law, suit in equity or other legal proceeding to disavow, cancel, revoke, rescind or challenge or
content the validity or enforceability of any of the Loan Documents or the Contribution Agreement shall be commenced by or on behalf
of the Borrower or any Guarantor, or any court or any other governmental or regulatory authority or agency of competent jurisdiction
shall make a determination, or issue a judgment, order, decree or ruling, to the effect that any one or more of the Loan Documents
or the Contribution Agreement is illegal, invalid or unenforceable in accordance with the terms thereof;

 

(l)          any
dissolution, termination, partial or complete liquidation, merger or consolidation of the Borrower, any Guarantor or any of their
respective Subsidiaries shall occur or any sale, transfer or other disposition of the assets of the Borrower, any Guarantor or
any of their respective Subsidiaries shall occur, in each case, other than as permitted under the terms of this Agreement or the
other Loan Documents;

 

(m)          with
respect to any Guaranteed Pension Plan, an ERISA Reportable Event shall have occurred and the Required Lenders shall have determined
in their reasonable discretion that such event reasonably could be expected to result in liability of the Borrower, the Guarantors
or any of their respective Subsidiaries to the PBGC or such Guaranteed Pension Plan in an aggregate amount exceeding $10,000,000.00
and (x) such event in the circumstances occurring reasonably could constitute grounds for the termination of such Guaranteed
Pension Plan by the PBGC or for the appointment by the appropriate United States District Court of a trustee to administer such
Guaranteed Pension Plan; or (y) a trustee shall have been appointed by the United States District Court to administer such Plan;
or (z) the PBGC shall have instituted proceedings to terminate such Guaranteed Pension Plan;

 

(n)          the
forfeiture to the United States of America of (i) any assets of the Borrower, any Guarantor or any of their respective Subsidiaries
which in the good faith judgment of the Required Lenders could reasonably be expected to have a Material Adverse Effect, or (ii) any
Collateral;

 

(o)          any
Guarantor denies that it has any liability or obligation under the Guaranty or any other Loan Document, or shall notify the Agent
or any of the Lenders of such Guarantor’s intention to attempt to cancel or terminate the Guaranty or any other Loan Document,
or shall fail to observe or comply with any term, covenant, condition or agreement under any Guaranty or any other Loan Document;

 

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(p)          any
Change of Control shall occur;

 

(q)          any
default, material misrepresentation or breach of warranty by the Borrower as the subordinate lender under any Subordination Agreement;
or

 

(r)          an
Event of Default under any of the other Loan Documents shall occur;

 

then, and in any such event, the Agent
may, and, upon the request of the Required Lenders, shall by notice in writing to the Borrower declare all amounts owing with respect
to this Agreement, the Notes, the Letters of Credit and the other Loan Documents to be, and they shall thereupon forthwith become,
immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly
waived by the Borrower; provided that in the event of any Event of Default specified in §§12.1(g), 12.1(h) or
12.1(i), all such amounts shall become immediately due and payable automatically and without any requirement of presentment, demand,
protest or other notice of any kind from any of the Lenders or the Agent, the Borrower hereby expressly waiving any right to notice
of intent to accelerate and notice of acceleration. Upon demand by the Agent or the Required Lenders in their absolute and sole
discretion after the occurrence and during the continuance of an Event of Default, and regardless of whether the conditions precedent
in this Agreement for a Revolving Credit Loan have been satisfied, the Lenders will cause a Revolving Credit Loan to be made in
the undrawn amount of all Letters of Credit. The proceeds of any such Revolving Credit Loan will be pledged to and held by the
Agent as security for any amounts that become payable under the Letters of Credit and all other Obligations and Hedge Obligations.
In the alternative, if demanded by the Agent in its absolute and sole discretion after the occurrence and during the continuance
of an Event of Default, the Borrower will deposit into the Collateral Account and pledge to the Agent cash in an amount equal to
the amount of all undrawn Letters of Credit. Such amounts will be pledged to and held by the Agent for the benefit of the Lenders
as security for any amounts that become payable under the Letters of Credit and all other Obligations and Hedge Obligations. Upon
any draws under Letters of Credit, at the Agent’s sole discretion, the Agent may apply any such amounts to the repayment
of amounts drawn thereunder and upon the expiration of the Letters of Credit any remaining amounts will be applied to the payment
of all other Obligations and Hedge Obligations or if there are no outstanding Obligations and Hedge Obligations and the Lenders
have no further obligation to make Revolving Credit Loans or issue Letters of Credit or if such excess no longer exists, such proceeds
deposited by the Borrower will be released to the Borrower.

 

§12.2      Certain
Cure Periods; Limitation of Cure Periods.

 

(a)          Notwithstanding
anything contained in §12.1 to the contrary, (i) no Event of Default shall exist hereunder upon the occurrence of any
failure described in §12.1(b) in the event that the Borrower cures such Default within five (5) Business Days after the
date such payment is due (or, with respect to any payments other than interest on the Loans, any reimbursement obligations with
respect to the Letters of Credit or any fees due under the Loan Documents, within five (5) Business Days after written notice thereof
shall have been given to the Borrower by the Agent), provided, however, that the Borrower shall not be entitled to
receive more than three (3) grace or cure periods in the aggregate pursuant to this clause (i) in any period of 365 days ending
on the date of any such occurrence of Default, and provided further, that no such cure period shall apply to any payments
due upon the maturity of the Notes, and (ii) no Event of Default shall exist hereunder upon the occurrence of any failure
described in §12.1(d) in the event that the Borrower cures (or causes to be cured) such Default within thirty (30) days
of the earlier to occur of (A) any Responsible Officer of Borrower, any Guarantor or any of their Subsidiaries becoming aware of
such failure or (B) written notice of such default being given to the Borrower by Agent, provided that if such failure is of such
a nature that can be cured but cannot with reasonable effort be completely cured within thirty (30) days, then such thirty (30)
day period shall be extended for such additional period of time (not exceeding thirty (30) additional days) as may be reasonably
necessary to cure such failure so long as the Borrower, a Guarantor or a Subsidiary, as applicable, commences such cure within
such thirty (30) day period and diligently prosecutes the same to completion; provided that the provisions of this clause
(ii) shall not pertain to defaults consisting of a failure to provide insurance as required by §7.7, to any default (whether
of the Borrower, any Guarantor or any Subsidiary thereof) consisting of a failure to comply with §§7.4(c), 7.14, 7.15,
7.17, 7.18, 7.19, 7.21, 8.1, 8.2, 8.3, 8.4, 8.7, 8.8, 8.13, 8.14 or 8.15 or to any Default excluded from any provision of cure
of defaults contained in any other of the Loan Documents.

 

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(b)          Notwithstanding
any of the foregoing provisions of this §12.2 to the contrary, in the event that there shall occur any Default or Event of
Default that affects only certain Borrowing Base Assets, then the Borrower may elect to cure such Default or Event of Default (so
long as no other Default or Event of Default would arise as a result) by electing to have the Agent remove such Borrowing Base
Assets from the calculation of the Borrowing Base Availability and by reducing the outstanding Loans and Letters of Credit so that
no Default exists under this Agreement, in which event such removal and reduction shall be completed within ten (10) Business Days
after receipt of notice of such Default from the Agent or the Required Lenders.

 

§12.3      Termination
of Commitments. If any one or more Events of Default specified in §12.1(g), 12.1(h) or 12.1(i) shall occur,
then immediately and without any action on the part of the Agent or any Lender any unused portion of the credit hereunder shall
terminate and the Lenders shall be relieved of all obligations to make Loans or issue Letters of Credit to the Borrower. If any
other Event of Default shall have occurred, the Agent may, and upon the election of the Required Lenders, shall, by notice to the
Borrower terminate the obligation to make Revolving Credit Loans to and issue Letters of Credit for the Borrower. No termination
under this §12.3 shall relieve the Borrower or the Guarantors of their obligations to the Lenders arising under this Agreement
or the other Loan Documents.

 

§12.4      Remedies.
In case any one or more Events of Default shall have occurred and be continuing, and whether or not the Lenders shall have accelerated
the maturity of the Loans pursuant to §12.1, the Agent, on behalf of the Lenders may, and upon the direction of the Required
Lenders, shall proceed to protect and enforce their rights and remedies under this Agreement, the Notes and/or any of the other
Loan Documents by suit in equity, action at law or other appropriate proceeding, including to the full extent permitted by Applicable
Law the specific performance of any covenant or agreement contained in this Agreement and the other Loan Documents, the obtaining
of the ex parte appointment of a receiver, requiring the establishment of a hard lockbox and cash management system with Agent,
and, if any amount shall have become due, by declaration or otherwise, the enforcement of the payment thereof. No remedy herein
conferred upon the Agent or the holder of any Note is intended to be exclusive of any other remedy and each and every remedy shall
be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or
by statute or any other provision of law. Notwithstanding the provisions of this Agreement providing that the Loans may be evidenced
by multiple Notes in favor of the Lenders, the Lenders acknowledge and agree that only the Agent may exercise any remedies arising
by reason of a Default or Event of Default. If the Borrower or any Guarantor fails to perform any agreement or covenant contained
in this Agreement or any of the other Loan Documents beyond any applicable period for notice and cure, the Agent may itself perform,
or cause to be performed, any agreement or covenant of such Person contained in this Agreement or any of the other Loan Documents
which such Person shall fail to perform, and the out-of-pocket costs of such performance, together with any reasonable expenses,
including reasonable attorneys’ fees actually incurred (including attorneys’ fees incurred in any appeal) by the Agent
in connection therewith, shall be payable by the Borrower upon demand and shall constitute a part of the Obligations and shall
if not paid within five (5) Business Days after demand bear interest at the Default Rate. In the event that all or any portion
of the Obligations is collected by or through an attorney-at-law, the Borrower shall pay all costs of collection including, but
not limited to, reasonable attorney’s fees.

 

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§12.5      Distribution
of Proceeds. In the event that, following the occurrence and during the continuance of any Event of Default, any monies are
received in connection with the enforcement of any of the Loan Documents, or otherwise with respect to the realization upon any
of the Collateral or other assets of the Borrower or the Guarantors, such monies shall be distributed for application as follows:

 

(a)          First,
to the payment of, or (as the case may be) the reimbursement of the Agent for or in respect of, all reasonable out-of-pocket costs,
expenses, disbursements and losses which shall have been paid or incurred or sustained by the Agent to protect or preserve the
Collateral or in connection with the collection of such monies by the Agent, for the exercise, protection or enforcement by the
Agent of all or any of the rights, remedies, powers and privileges of the Agent or the Lenders under this Agreement or any of the
other Loan Documents or in respect of the Collateral or other assets of the Borrower or the Guarantors or in support of any provision
of adequate indemnity to the Agent against any taxes or liens which by law shall have, or may have, priority over the rights of
the Agent or the Lenders to such monies;

 

(b)          Second,
to all other Obligations and Hedge Obligations (including any interest, expenses or other obligations incurred after the commencement
of a bankruptcy) in such order or preference as the Required Lenders shall determine; provided, that (i) Swing Loans
shall be repaid first, (ii) distributions in respect of such other Obligations shall include, on a pari passu basis, any Agent’s
fee payable pursuant to §4.2, (iii) in the event that any Lender is a Defaulting Lender, payments to such Lender shall
be governed by §2.13, and (iv) except as otherwise provided in clause (iii), Obligations owing to the Lenders with respect
to each type of Obligation such as interest, principal, fees and expenses and Hedge Obligations (but excluding the Swing Loans)
shall be made among the Lenders and Lender Hedge Providers, pro rata; and provided, further that the Required Lenders
may in their discretion make proper allowance to take into account any Obligations not then due and payable; and

 

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(c)          Third,
the excess, if any, shall be returned to the Borrower or to such other Persons as are entitled thereto.

 

§12.6      Collateral
Account.

 

(a)          As
collateral security for the prompt payment in full when due of all Letter of Credit Liabilities, Swing Loans and the other Obligations
and Hedge Obligations, the Borrower hereby pledges and grants to the Agent, for the ratable benefit of the Agent and the Lenders
as provided herein, a security interest in all of its right, title and interest in and to the Collateral Account and the balances
from time to time in the Collateral Account (including any interest provided for below). The balances from time to time in the
Collateral Account shall not constitute payment of any Letter of Credit Liabilities or Swing Loans until applied by the Agent as
provided herein. Anything in this Agreement to the contrary notwithstanding, funds held in the Collateral Account shall be subject
to withdrawal only as provided in this §12.6.

 

(b)          Amounts
on deposit in the Collateral Account shall not be invested by the Agent, and will earn interest at a rate paid by Agent with respect
to similar accounts, and shall be held in the name of and be under the sole dominion and control of the Agent for the ratable benefit
of the Lenders. The Agent shall exercise reasonable care in the custody and preservation of any funds held in the Collateral Account
and shall be deemed to have exercised such care if such funds are accorded treatment substantially equivalent to that which the
Agent accords other funds deposited with the Agent, it being understood that the Agent shall not have any responsibility for taking
any necessary steps to preserve rights against any parties with respect to any funds held in the Collateral Account.

 

(c)          If
a drawing pursuant to any Letter of Credit occurs on or prior to the expiration date of such Letter of Credit, the Borrower and
the Lenders authorize the Agent to use the monies deposited in the Collateral Account to make payment to the beneficiary with respect
to such drawing or the payee with respect to such presentment. If a Swing Loan is not refinanced as a Base Rate Loan as provided
in §2.5 above, then the Agent is authorized to use monies deposited in the Collateral Account to make payment to the Swing
Loan Lender with respect to any participation not funded by a Defaulting Lender.

 

(d)          If
an Event of Default exists, the Required Lenders may, in their discretion, at any time and from time to time, instruct the Agent
to liquidate or withdraw any amounts in the Collateral Account and apply proceeds thereof to the Obligations and Hedge Obligations
in accordance with §12.5.

 

(e)          So
long as no Default or Event of Default exists, and to the extent amounts on deposit in the Collateral Account exceed the aggregate
amount of the Letter of Credit Liabilities then due and owing and the pro rata share of any Letter of Credit Obligations and Swing
Loans of any Defaulting Lender after giving effect to §2.13(c), the Agent shall, from time to time, at the request of the
Borrower, deliver to the Borrower within ten (10) Business Days after the Agent’s receipt of such request from the Borrower,
against receipt but without any recourse, warranty or representation whatsoever, such of the balances in the Collateral Account
as exceed the aggregate amount of the Letter of Credit Liabilities and Swing Loans at such time.

 

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(f)          The
Borrower shall pay to the Agent from time to time within ten (10) Business Days following written request therefor such fees as
the Agent normally charges for similar services in connection with the Agent’s administration of the Collateral Account.
The Borrower authorizes the Agent to file such financing statements as the Agent may reasonably require in order to perfect the
Agent’s security interest in the Collateral Account, and the Borrower shall promptly upon demand execute and deliver to the
Agent such other documents as the Agent may reasonably request to evidence its security interest in the Collateral Account.

 

§13.       SETOFF.

 

Regardless of the adequacy
of any Collateral, during the continuance of any Event of Default, any deposits (general or specific, time or demand, provisional
or final, regardless of currency, maturity, or the branch where such deposits are held) or other sums credited by or due from any
Lender to the Borrower or the Guarantors and any securities or other property of the Borrower or the Guarantors in the possession
of such Lender may, without notice to the Borrower or any Guarantor (any such notice being expressly waived by the Borrower and
each Guarantor) but with the prior written approval of the Agent, be applied to or set off against the payment of Obligations and
any and all other liabilities, direct, or indirect, absolute or contingent, due or to become due, now existing or hereafter arising,
of the Borrower or the Guarantors to such Lender under the Loan Documents. Each of the Lenders agree with each other Lender that
if such Lender shall receive from the Borrower or the Guarantors, whether by voluntary payment, exercise of the right of setoff,
or otherwise, and shall retain and apply to the payment of the Note or Notes held by such Lender (but excluding the Swing Loan
Note) any amount in excess of its ratable portion of the payments received by all of the Lenders with respect to the Notes held
by all of the Lenders, such Lender will make such disposition and arrangements with the other Lenders with respect to such excess,
either by way of distribution, pro tanto assignment of claims, subrogation or otherwise as shall result in each Lender receiving
in respect of the Notes held by it its proportionate payment as contemplated by this Agreement; provided that if all or
any part of such excess payment is thereafter recovered from such Lender, such disposition and arrangements shall be rescinded
and the amount restored to the extent of such recovery, but without interest. In the event that any Defaulting Lender shall exercise
any such right of setoff, (a) all amounts so set off shall be paid over immediately to the Agent for further application in
accordance with the provisions of this Agreement and, pending such payment, shall be segregated by such Defaulting Lender from
its other funds and deemed held in trust for the benefit of the Agent and the Lenders, and (b) such Defaulting Lender shall
provide promptly to the Agent a statement describing in reasonable detail the Obligations owing to such Defaulting Lender as to
which it exercised such right of setoff.

 

§14.       THE
AGENT.

 

§14.1      Authorization.
The Agent is authorized to take such action on behalf of each of the Lenders and to exercise all such powers as are hereunder and
under any of the other Loan Documents and any related documents delegated to the Agent, together with such powers as are reasonably
incident thereto, provided that no duties or responsibilities not expressly assumed herein or therein shall be implied to
have been assumed by the Agent. The obligations of the Agent hereunder are primarily administrative in nature, and nothing contained
in this Agreement or any of the other Loan Documents shall be construed to constitute the Agent as a trustee for any Lender or
to create an agency or fiduciary relationship. The Agent shall act as the contractual representative of the Lenders hereunder,
and notwithstanding the use of the term “Agent”, it is understood and agreed that the Agent shall not have any fiduciary
duties or responsibilities to any Lender by reason of this Agreement or any other Loan Document and is acting as an independent
contractor, the duties and responsibilities of which are limited to those expressly set forth in this Agreement and the other Loan
Documents. The Borrower and any other Person shall be entitled to conclusively rely on a statement from the Agent that it has the
authority to act for and bind the Lenders pursuant to this Agreement and the other Loan Documents.

 

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§14.2         Employees
and Agents. The Agent may exercise its powers and execute its duties by or through employees or agents and shall be entitled
to take, and to rely on, advice of counsel concerning all matters pertaining to its rights and duties under this Agreement and
the other Loan Documents. The Agent may utilize the services of such Persons as the Agent may reasonably determine, and all reasonable
fees and expenses of any such Persons shall be paid by the Borrower.

 

§14.3         No
Liability. Neither the Agent nor any of its shareholders, directors, officers or employees nor any other Person assisting them
in their duties nor any agent, or employee thereof, shall be liable for (a) any waiver, consent or approval given or any action
taken, or omitted to be taken, in good faith by it or them hereunder or under any of the other Loan Documents, or in connection
herewith or therewith, or be responsible for the consequences of any oversight or error of judgment whatsoever, except that the
Agent or such other Person, as the case may be, shall be liable for losses due to its willful misconduct or gross negligence as
finally determined by a court of competent jurisdiction after the expiration of all applicable appeal periods or (b) any action
taken or not taken by the Agent with the consent or at the request of the Required Lenders, all of the Lenders or all affected
Lenders, as applicable. The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of
Default, unless the Agent has received notice from a Lender or the Borrower referring to the Loan Documents and describing with
reasonable specificity such Default or Event of Default and stating that such notice is a “notice of default”.

 

§14.4         No
Representations. The Agent shall not be responsible for the execution or validity or enforceability of this Agreement, the
Notes, any of the other Loan Documents or any instrument at any time constituting, or intended to constitute, collateral security
for the Notes, or for the value of any such collateral security or for the validity, enforceability or collectability of any such
amounts owing with respect to the Notes, or for any recitals or statements, warranties or representations made herein, or any agreement,
instrument or certificate delivered in connection therewith or in any of the other Loan Documents or in any certificate or instrument
hereafter furnished to it by or on behalf of the Borrower, the Guarantors or any of their respective Subsidiaries, or be bound
to ascertain or inquire as to the performance or observance of any of the terms, conditions, covenants or agreements herein or
in any of the other Loan Documents. The Agent shall not be bound to ascertain whether any notice, consent, waiver or request delivered
to it by the Borrower, the Guarantors or any holder of any of the Notes shall have been duly authorized or is true, accurate and
complete. The Agent has not made nor does it now make any representations or warranties, express or implied, nor does it assume
any liability to the Lenders, with respect to the creditworthiness or financial condition of the Borrower, the Guarantors or any
of their respective Subsidiaries, or the value of any Collateral or any other assets of the Borrower, any Guarantor or any of their
respective Subsidiaries. Each Lender acknowledges that it has, independently and without reliance upon the Agent or any other Lender,
and based upon such information and documents as it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Agent or any other
Lender, based upon such information and documents as it deems appropriate at the time, continue to make its own credit analysis
and decisions in taking or not taking action under this Agreement and the other Loan Documents. The Agent’s Special Counsel
has only represented the Agent and KeyBank in connection with the Loan Documents and the only attorney client relationship or duty
of care is between the Agent’s Special Counsel and the Agent or KeyBank. Each Lender has been independently represented by
separate counsel on all matters regarding the Loan Documents and the granting and perfecting of liens in the Collateral.

 

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§14.5     Payments.

 

(a)          A
payment by the Borrower or any Guarantor to the Agent hereunder or under any of the other Loan Documents for the account of any
Lender shall constitute a payment to such Lender. The Agent agrees to distribute to each Lender not later than one (1) Business
Day after the Agent’s receipt of good funds, determined in accordance with the Agent’s customary practices, such Lender’s
pro rata share of payments received by the Agent for the account of the Lenders except as otherwise expressly provided herein or
in any of the other Loan Documents. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes
a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, each payment by the Borrower hereunder
shall be applied in accordance with §2.13(d).

 

(b)          If
in the opinion of the Agent the distribution of any amount received by it in such capacity hereunder, under the Notes or under
any of the other Loan Documents might involve it in liability, it may refrain from making such distribution until its right to
make such distribution shall have been adjudicated by a court of competent jurisdiction. If a court of competent jurisdiction shall
adjudge that any amount received and distributed by the Agent is to be repaid, each Person to whom any such distribution shall
have been made shall either repay to the Agent its proportionate share of the amount so adjudged to be repaid or shall pay over
the same in such manner and to such Persons as shall be determined by such court.

 

§14.6     Holders
of Notes. Subject to the terms of §18, the Agent may deem and treat the payee of any Note as the absolute owner or purchaser
thereof for all purposes hereof until it shall have been furnished in writing with a different name by such payee or by a subsequent
holder, assignee or transferee.

 

§14.7     Indemnity.
The Lenders ratably agree hereby to indemnify and hold harmless the Agent from and against any and all claims, actions and suits
(whether groundless or otherwise), losses, damages, costs, expenses (including any expenses for which the Agent has not been reimbursed
by the Borrower as required by §15), and liabilities of every nature and character arising out of or related to this Agreement,
the Notes, or any of the other Loan Documents or the transactions contemplated or evidenced hereby or thereby, or the Agent’s
actions taken hereunder or thereunder, except to the extent that any of the same shall be directly caused by the Agent’s
willful misconduct or gross negligence as finally determined by a court of competent jurisdiction after the expiration of all applicable
appeal periods. The agreements in this §14.7 shall survive the payment of all amounts payable under the Loan Documents.

 

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§14.8     The
Agent as Lender. In its individual capacity, KeyBank shall have the same obligations and the same rights, powers and privileges
in respect to its Commitment and the Loans made by it, and as the holder of any of the Notes as it would have were it not also
the Agent.

 

§14.9     Resignation.
The Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower. Any such resignation may at
the Agent’s option also constitute the Agent’s resignation as the Issuing Lender and the Swing Loan Lender. Upon any
such resignation, the Required Lenders, subject to the terms of §18.1, shall have the right to appoint as a successor Agent
and, if applicable, Issuing Lender and Swing Loan Lender, any Lender or any bank whose senior debt obligations are rated not less
than “A” or its equivalent by Moody’s or not less than “A” or its equivalent by S&P and which
has a net worth of not less than $1,000,000,000.00. Unless a Default or Event of Default shall have occurred and be continuing,
such successor Agent and, if applicable, Issuing Lender and Swing Loan Lender, shall be reasonably acceptable to the Borrower.
If no successor Agent shall have been appointed and shall have accepted such appointment within ten (10) days after the retiring
Agent’s giving of notice of resignation, then the retiring Agent may, on behalf of the Lenders, appoint a successor Agent,
which shall be any Lender or any bank whose senior debt obligations are rated not less than “A2” or its equivalent
by Moody’s or not less than “A” or its equivalent by S&P and which has a net worth of not less than $1,000,000,000.00.
Upon the acceptance of any appointment as the Agent and, if applicable, the Issuing Lender and the Swing Loan Lender, hereunder
by a successor Agent and, if applicable, Issuing Lender and Swing Loan Lender, such successor Agent and, if applicable, Issuing
Lender and Swing Loan Lender, shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of
the retiring Agent and, if applicable, Issuing Lender and Swing Loan Lender, and the retiring Agent and, if applicable, Issuing
Lender and Swing Loan Lender, shall be discharged from its duties and obligations hereunder as the Agent and, if applicable, the
Issuing Lender and the Swing Loan Lender. After any retiring Agent’s resignation, the provisions of this Agreement and the
other Loan Documents shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while
it was acting as the Agent, the Issuing Lender and the Swing Loan Lender. If the resigning Agent shall also resign as the Issuing
Lender, such successor Agent shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the
time of such succession or shall make other arrangements satisfactory to the current Issuing Lender, in either case, to assume
effectively the obligations of the current Agent with respect to such Letters of Credit. Upon any change in the Agent under this
Agreement, the resigning Agent shall execute such assignments of and amendments to the Loan Documents as may be necessary to substitute
the successor Agent for the resigning Agent.

 

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§14.10      Duties
in the Case of Enforcement. In case one or more Events of Default have occurred and shall be continuing, and whether or not
acceleration of the Obligations shall have occurred, the Agent may and, if (a) so requested by the Required Lenders and (b) the
Lenders have provided to the Agent such additional indemnities and assurances in accordance with their respective Commitment Percentages
against expenses and liabilities as the Agent may reasonably request, shall proceed to exercise all or any legal and equitable
and other rights or remedies as it may have; provided, however, that unless and until the Agent shall have received
such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem to be in the best interests of the Lenders. Without limiting the generality
of the foregoing, if the Agent reasonably determines payment is in the best interest of all the Lenders, the Agent may without
the approval of the Lenders pay taxes and insurance premiums and spend money for maintenance, repairs or other expenses which may
be necessary to be incurred, and the Agent shall promptly thereafter notify the Lenders of such action. Each Lender shall, within
thirty (30) days of request therefor, pay to the Agent its Commitment Percentage of the reasonable costs incurred by the Agent
in taking any such actions hereunder to the extent that such costs shall not be promptly reimbursed to the Agent by the Borrower
or the Guarantors or out of any Collateral within such period. The Required Lenders may direct the Agent in writing as to the method
and the extent of any such exercise, the Lenders hereby agreeing to indemnify and hold the Agent harmless in accordance with their
respective Commitment Percentages from all liabilities incurred in respect of all actions taken or omitted in accordance with such
directions, provided that the Agent need not comply with any such direction to the extent that the Agent reasonably believes
the Agent’s compliance with such direction to be unlawful in any applicable jurisdiction or commercially unreasonable under
the UCC as enacted in any applicable jurisdiction.

 

§14.11      Request
for Agent Action. The Agent and the Lenders acknowledge that in the ordinary course of business of the Borrower, (a) a Borrowing
Base Property may be subject to a Taking, or (b) the Borrower or any Subsidiary Guarantor may desire to enter into easements or
other agreements affecting the Borrowing Base Properties, or take other actions or enter into other agreements in the ordinary
course of business (including, without limitation, Leases) which similarly require the consent, approval or agreement of the Agent.
In connection with the foregoing, the Lenders hereby expressly authorize the Agent to (x) execute releases of liens in connection
with any Taking, (y) execute consents in form and substance satisfactory to the Agent in connection with any easements or agreements
affecting the Borrowing Base Property, or (z) execute consents, approvals, or other agreements in form and substance satisfactory
to the Agent in connection with such other actions or agreements as may be necessary in the ordinary course of the Borrower’s
business.

 

§14.12      Bankruptcy.
In the event a bankruptcy or other insolvency proceeding is commenced by or against the Borrower or any Guarantor with respect
to the Obligations, the Agent shall have the sole and exclusive right to file and pursue a joint proof claim on behalf of all Lenders.
Any votes with respect to such claims or otherwise with respect to such proceedings shall be subject to the vote of the Required
Lenders, all of the Lenders or all affected Lenders, as applicable, as required by this Agreement. Each Lender irrevocably waives
its right to file or pursue a separate proof of claim in any such proceedings unless the Agent fails to file such claim within
thirty (30) days after receipt of written notice from the Lenders requesting that the Agent file such proof of claim.

 

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§14.13      Reliance
by the 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
an Authorized Officer. 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 such 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.

 

§14.14      Approvals.
If consent is required for some action under this Agreement, or except as otherwise provided herein an approval of the Required
Lenders is required or permitted under this Agreement, each Lender agrees to give the Agent, within ten (10) days of receipt of
the request for action from the Agent together with all reasonably requested information related thereto (or such lesser period
of time required by the terms of the Loan Documents), notice in writing of approval or disapproval (collectively, “Directions”)
in respect of any action requested or proposed in writing pursuant to the terms hereof. To the extent that any Lender does not
approve any recommendation of the Agent, such Lender shall in such notice to the Agent describe the actions that would be acceptable
to such Lender. If consent is required for the requested action, any Lender’s failure to respond to a request for Directions
within the required time period shall be deemed to constitute a Direction to take such requested action. In the event that any
recommendation is not approved by the requisite number of Lenders and a subsequent approval on the same subject matter is requested
by the Agent, then for the purposes of this paragraph each Lender shall be required to respond to a request for Directions within
ten (10) days of receipt of such request. The Agent and each Lender shall be entitled to assume that any officer of the other Lenders
delivering any notice, consent, certificate or other writing is authorized to give such notice, consent, certificate or other writing
unless the Agent and such other Lenders have otherwise been notified in writing. Notwithstanding the foregoing, this §14.14
shall not apply to any decision, consent or approval requiring the approval of all of the Lenders or all affected Lenders.

 

§14.15      The
Borrower Not Beneficiary. Except for the provisions of §14.9 relating to the appointment of a successor Agent, the provisions
of this §14 are solely for the benefit of the Agent and the Lenders, may not be enforced by the Borrower or any Guarantor,
and except for the provisions of §14.9, may be modified or waived without the approval or consent of the Borrower.

 

§14.16     Reliance
on Hedge Provider. For purposes of applying payments received in accordance with §§12.1, 12.5, 12.6 or any other
provision of the Loan Documents, the Agent shall be entitled to rely upon the trustee, paying agent or other similar representative
(each, a “Representative”) or, in the absence of such a Representative, upon the holder of the Hedge Obligations
for a determination (which each holder of the Hedge Obligations agrees (or shall agree) to provide upon request of the Agent) of
the outstanding Hedge Obligations owed to the holder thereof. Unless it has actual knowledge (including by way of written notice
from such holder) to the contrary, the Agent, in acting hereunder, shall be entitled to assume that no Hedge Obligations are outstanding.

 

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§15.       EXPENSES.

 

The Borrower agrees
to pay (a) the reasonable out-of-pocket costs of producing and reproducing this Agreement, the other Loan Documents and the
other agreements and instruments mentioned herein, (b) any Indemnified Taxes, (c) all title insurance premiums, if any,
reasonable engineer’s fees (to the extent Agent is permitted to engage such parties pursuant to the terms of this Agreement),
reasonable environmental reviews (to the extent Agent is permitted to engage such parties pursuant to the terms of this Agreement),
and reasonable fees, expenses and disbursements of the counsel to the Agent and KBCM and any local counsel to the Agent incurred
in connection with the preparation, administration, or interpretation of the Loan Documents and other instruments mentioned herein,
and amendments, modifications, approvals, consents or waivers hereto or hereunder, (d) the reasonable out-of-pocket fees,
costs, expenses and disbursements of the Agent and KBCM incurred in connection with the initial syndication and/or participation
(by KeyBank) of the Loans, (e) all other reasonable out-of-pocket fees, expenses and disbursements of the Agent incurred by
the Agent in connection with the preparation, administration or interpretation of the Loan Documents and other instruments mentioned
herein, the addition or substitution of additional Collateral or Borrowing Base Assets, the release of Collateral, the making of
each advance hereunder, the issuance of Letters of Credit, and the syndication of the Commitments pursuant to §18 (without
duplication of those items addressed in clause (d) above), (f) all reasonable out-of-pocket expenses (including reasonable
attorneys’ fees and costs, and fees and costs of appraisers, engineers, or other experts retained by the Agent) incurred
by any Lender or the Agent in connection with (i) the enforcement of or preservation of rights under any of the Loan Documents
against the Borrower or the Guarantors or the administration thereof after the occurrence of a Default or Event of Default or any
other workout of the Loan Documents and (ii) any litigation, proceeding or dispute whether arising hereunder or otherwise,
in any way related to the Agent’s, or any of the Lenders’ relationship with the Borrower or the Guarantors, (g) all
reasonable fees, expenses and disbursements of the Agent incurred in connection with UCC searches, UCC filings, title rundowns,
title searches or mortgage recordings after a Default or Event of Default or otherwise that Agent is permitted to run pursuant
to the terms of this Agreement, (h) all reasonable out-of-pocket fees, expenses and disbursements (including reasonable attorneys’
fees and costs) which may be incurred by KeyBank in connection with the execution and delivery of this Agreement and the other
Loan Documents (without duplication of any of the items listed above), and (i) all expenses relating to the use of Intralinks,
SyndTrak or any other similar system for the dissemination and sharing of documents and information in connection with the Loans.
The covenants of this §15 shall survive the repayment of the Loans and the termination of the obligations of the Lenders hereunder.

 

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§16.       INDEMNIFICATION.

 

The Borrower agrees
to indemnify and hold harmless the Agent, the Lenders, the Arrangers, their respective Affiliates and Persons who control any of
such Persons, and each director, officer, employee, agent and attorney thereof against any and all claims, actions and suits, whether
groundless or otherwise, and from and against any and all liabilities, losses, damages and expenses of every nature and character
arising out of or relating to this Agreement or any of the other Loan Documents or the transactions contemplated hereby and thereby
including, without limitation, (a) any and all claims for brokerage, leasing, finders or similar fees which may be made relating
to the Borrowing Base Assets, other Real Estate or the Loans, (b) any condition of the Borrowing Base Assets or other Real
Estate, (c) any actual or proposed use by the Borrower of the proceeds of any of the Loans or Letters of Credit, (d) any
actual or alleged infringement of any patent, copyright, trademark, service mark or similar right of the Borrower, any Guarantor
or any of their respective Subsidiaries, (e) the Borrower and the Guarantors entering into or performing this Agreement or
any of the other Loan Documents, (f) any actual or alleged violation of any law, ordinance, code, order, rule, regulation,
approval, consent, permit or license relating to the Borrowing Base Assets or any other Real Estate, (g) with respect to the
Borrower, the Guarantors and their respective Subsidiaries and their respective properties and assets, the violation of any Environmental
Law, the Release or threatened Release of any Hazardous Substances or any action, suit, proceeding or investigation brought or
threatened with respect to any Hazardous Substances (including, but not limited to, claims with respect to wrongful death, personal
injury, nuisance or damage to property), and (h) any use of Intralinks, SyndTrak or any other system for the dissemination
and sharing of documents and information, in each case including, without limitation, the reasonable fees and disbursements of
counsel incurred in connection with any such investigation, litigation or other proceeding; provided, however, that
the Borrower shall not be obligated under this §16 to indemnify any Person for liabilities arising from such Person’s
own gross negligence or willful misconduct as determined by a court of competent jurisdiction after the exhaustion of all applicable
appeal periods. In litigation, or the preparation therefor, the Lenders and the Agent shall be entitled to select a single law
firm as their own counsel and an additional single local counsel in each applicable local jurisdiction for all such parties (and,
to the extent reasonably necessary in the case of an actual or perceived conflict of interest, one additional counsel) and, in
addition to the foregoing indemnity, the Borrower agrees to pay promptly the reasonable fees and expenses of such counsel. No person
indemnified hereunder shall be liable for any damages arising from the use by unintended recipients of any information or other
materials distributed by it through telecommunications, electronic or other information transmission systems in connection with
this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. If, and to the extent that the obligations
of the Borrower under this §16 are unenforceable for any reason, the Borrower hereby agrees to make the maximum contribution
to the payment in satisfaction of such obligations which is permissible under Applicable Law. The provisions of this §16 shall
survive the repayment of the Loans and the termination of the obligations of the Lenders hereunder.

 

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§17.       SURVIVAL
OF COVENANTS, ETC. 

 

All covenants, agreements,
representations and warranties made herein, in the Notes, in any of the other Loan Documents or in any documents or other papers
delivered by or on behalf of the Borrower or the Guarantors or any of their respective Subsidiaries pursuant hereto or thereto
shall be deemed to have been relied upon by the Lenders and the Agent, notwithstanding any investigation heretofore or hereafter
made by any of them, and shall survive the making by the Lenders of any of the Loans, as herein contemplated, and shall continue
in full force and effect so long as any amount due under this Agreement or the Notes or any of the other Loan Documents remains
outstanding or any Letters of Credit remain outstanding or any Lender has any obligation to make any Loans or issue any Letters
of Credit. The indemnification obligations of the Borrower provided herein and in the other Loan Documents and the Borrower’s
obligations under §§4.8, 4.9 and 4.10 shall survive the full repayment of amounts due and the termination of the obligations
of the Lenders hereunder and thereunder to the extent provided herein and therein. All statements contained in any certificate
delivered to any Lender or the Agent at any time by or on behalf of the Borrower, any Guarantor or any of their respective Subsidiaries
pursuant hereto or in connection with the transactions contemplated hereby shall constitute representations and warranties by such
Person hereunder.

 

§18.       ASSIGNMENT
AND PARTICIPATION.

 

§18.1         Conditions
to Assignment by Lenders. Except as provided herein, each Lender may assign to one or more banks or other entities (but not
to any natural person) all or a portion of its interests, rights and obligations under this Agreement (including all or a portion
of its Commitment Percentage and Commitment and the same portion of the Loans at the time owing to it and the Notes held by it);
provided that (a) the Agent, the Issuing Lender and, so long as no Default or Event of Default exists hereunder, the
Borrower shall have each given its prior written consent to such assignment, which consent shall not be unreasonably withheld or
delayed, and if the Borrower does not respond to any such request for consent within five (5) Business Days, the Borrower shall
be deemed to have consented (provided that such consent shall not be required for any assignment to another Lender, to a Related
Fund, to a lender or an Affiliate of a Lender which controls, is controlled by or is under common control with the assigning Lender
or to a wholly-owned Subsidiary of such Lender), (b) each such assignment shall be of a constant, and not a varying, percentage
of all the assigning Lender’s rights and obligations under this Agreement with respect to the assigned portion of the Commitment,
(c) the parties to such assignment shall execute and deliver to the Agent, for recording in the Register (as hereinafter defined)
an assignment and acceptance agreement in the form of Exhibit I attached hereto (an “Assignment and Acceptance
Agreement”), together with any Notes subject to such assignment, (d) in no event shall any assignment be to any Person
controlling, controlled by or under common control with, or which is not otherwise free from influence or control by the Borrower
or any Guarantor or be to a Defaulting Lender or an Affiliate of a Defaulting Lender, (e) such assignee of a portion of the
Revolving Credit Loans shall have a net worth or unfunded commitment as of the date of such assignment of not less than $500,000,000.00
(unless otherwise approved by the Agent and, so long as no Default or Event of Default exists hereunder, the Borrower), (f) such
assignee shall acquire an interest in the Loans of not less than $5,000,000.00 and integral multiples of $1,000,000.00 in excess
thereof (or if less, the remaining Loans of the assignor), unless waived by the Agent, and so long as no Default or Event of Default
exists hereunder, the Borrower and (g) if such assignment is less than the assigning Lender’s entire Commitment, the
assigning Lender shall retain an interest in the Loans of not less than $5,000,000.00. Upon execution, delivery, acceptance and
recording of such Assignment and Acceptance Agreement, (i) the assignee thereunder shall be a party hereto and all other Loan
Documents executed by the Lenders and, to the extent provided in such Assignment and Acceptance Agreement, have the rights and
obligations of a Lender hereunder, (ii) the assigning Lender shall, upon payment to the Agent of the registration fee referred
to in §18.2, be released from its obligations under this Agreement arising after the effective date of such assignment with
respect to the assigned portion of its interests, rights and obligations under this Agreement, and (iii) the Agent shall unilaterally
amend Schedule 1.1 in its own records to reflect such assignment. In connection with each assignment, the assignee
shall represent and warrant to the Agent, the assignor and each other Lender as to whether such assignee is controlling, controlled
by, under common control with or is not otherwise free from influence or control by, the Borrower and/or any Guarantor and whether
such assignee is a Defaulting Lender or an Affiliate of a Defaulting Lender. In connection with any assignment of rights and obligations
of any Defaulting Lender, no such assignment shall be effective unless and until, in addition to the other conditions thereto set
forth herein, the parties to the assignment shall make such additional payments to the Agent in an aggregate amount sufficient,
upon distribution thereof as appropriate (which may be outright payment, purchases by the assignee of participations or actions,
including funding, with the consent of the Borrower and the Agent, the applicable pro rata share of Loans previously requested
but not funded by the Defaulting Lender to each of which the applicable assignee and assignor hereby irrevocably consent), to (x) pay
and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent or any Lender hereunder (and interest
accrued thereon) and (y) acquire (and fund as appropriate) its full pro rata share of all Loans and participations in Letters of
Credit and Swing Loans in accordance with its applicable Commitment Percentage. Notwithstanding the foregoing, in the event that
any assignment of rights and obligations of any Defaulting Lender hereunder shall become effective under Applicable Law without
compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender
for all purposes of this Agreement until such compliance occurs.

 

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§18.2     Register.
The Agent acting for this purpose as a non-fiduciary agent for Borrower, shall maintain on behalf of the Borrower a copy of each
assignment delivered to it and a register or similar list (the “Register”) for the recordation of the names
and addresses of the Lenders and the Commitment Percentages of and principal amount of the Loans owing to the Lenders from time
to time. The entries in the Register shall be conclusive, in the absence of manifest error, and the Borrower, the Guarantors, the
Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower and the Lenders at any reasonable time and from time
to time upon reasonable prior notice. Upon each such recordation, the assigning Lender agrees to pay to the Agent a registration
fee in the sum of $5,000.00.

 

§18.3     New
Notes. Upon its receipt of an Assignment and Acceptance Agreement executed by the parties to such assignment, together with
each Note subject to such assignment, the Agent shall record the information contained therein in the Register. Within five (5)
Business Days after receipt of notice of such assignment from the Agent, the Borrower, at its own expense, shall execute and deliver
to the Agent, in exchange for each surrendered Note, a new Note to such assignee in an amount equal to the amount assigned to such
assignee pursuant to such Assignment and Acceptance Agreement and, if the assigning Lender has retained some portion of its obligations
hereunder, a new Note to the assigning Lender in an amount equal to the amount retained by it hereunder. Such new Notes shall provide
that they are replacements for the surrendered Notes, shall be in an aggregate principal amount equal to the aggregate principal
amount of the surrendered Notes, shall be dated the effective date of such Assignment and Acceptance Agreement and shall otherwise
be in substantially the form of the assigned Notes. The surrendered Notes shall be canceled and returned to the Borrower.

 

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§18.4     Participations.
Each Lender may, without the consent of Agent or Borrower, sell participations to one or more Lenders or other entities (but not
to any natural Person) in all or a portion of such Lender’s rights and obligations under this Agreement and the other Loan
Documents; provided that (a) any such sale or participation shall not affect the rights and duties of the selling Lender
hereunder, (b) such participation shall not entitle such participant to any rights or privileges under this Agreement or any
Loan Documents, including without limitation, rights granted to the Lenders under §§4.3, 4.8, 4.9, 4.10 and 13, (c) such
participation shall not entitle the participant to the right to approve waivers, amendments or modifications, (d) such participant
shall have no direct rights against the Borrower, (e) such sale is effected in accordance with all Applicable Laws, and (f) such
participant shall not be a Person controlling, controlled by or under common control with, or which is not otherwise free from
influence or control by the Borrower and/or any Guarantor and shall not be a Defaulting Lender or an Affiliate of a Defaulting
Lender; provided, however, such Lender may agree with the participant that it will not, without the consent of the
participant, agree to (i) increase, or extend the term or extend the time or waive any requirement for the reduction or termination
of, such Lender’s Commitment, (ii) except as provided in §2.12, extend the date fixed for the payment of principal
of or interest on the Loans or portions thereof owing to such Lender, (iii) reduce the amount of any such payment of principal,
(iv) reduce the rate at which interest is payable thereon or (v) release any Guarantor or any material Collateral (except
as otherwise permitted under this Agreement). Each Lender that sells a participation shall, acting solely for this purpose as an
agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts
(and stated interest) of each participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant
Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register
(including the identity of any participant or any information relating to a participant’s interest in any Commitments, Loans,
or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish
that such Commitment, Loan, or other obligation is in registered form under Section 5f. 103-1(c) of the United States Treasury
Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each
Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement
notwithstanding any notice to the contrary. For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility
for maintaining a Participant Register.

 

§18.5     Pledge
by Lender. Any Lender may at any time pledge all or any portion of its interest and rights under this Agreement (including
all or any portion of its Note) to any of the twelve Federal Reserve Banks organized under Section 4 of the Federal Reserve
Act, 12 U.S.C. §341, any other central bank having jurisdiction over such Lender, or to such other Person as the Agent may
approve to secure obligations of such Lender. No such pledge or the enforcement thereof shall release the pledgor Lender from its
obligations hereunder or under any of the other Loan Documents.

 

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§18.6     No
Assignment by the Borrower. The Borrower shall not assign or transfer any of its rights or obligations under this Agreement
(including by way of an LLC Division) without the prior written consent of each of the Lenders.

 

§18.7     Disclosure.
The Borrower agrees to promptly and reasonably cooperate with any Lender in connection with any proposed assignment or participation
of all or any portion of its Commitment. Each of the Agent, the Lenders and the Issuing Lender agree to maintain the confidentiality
of the Information (as defined below), it being understood and agreed that, notwithstanding the foregoing, a Lender may make (a)
disclosures to its participants (provided such Persons are advised of the provisions of this §18.7), (b) disclosures to its
directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors of such Lender
(provided that such Persons who are not employees of such Lender are advised of the provision of this §18.7), (c) disclosures
customarily provided or reasonably required by any potential or actual bona fide assignee, transferee or participant or their respective
directors, officers, employees, Affiliates, accountants, appraisers, legal counsel and other professional advisors in connection
with a potential or actual assignment or transfer by such Lender of any Loans or any participations therein (provided such Persons
are advised of the provisions of this §18.7), (d) disclosures to bank regulatory authorities or self-regulatory bodies with
jurisdiction over such Lender, or (e) disclosures required or requested by any other Governmental Authority or representative thereof
or pursuant to legal process; provided that, unless specifically prohibited by Applicable Law or court order, each Lender shall
notify the Borrower of any request by any Governmental Authority or representative thereof prior to disclosure (other than any
such request in connection with any examination of such Lender by such Governmental Authority) for disclosure of any such non-public
information prior to disclosure of such information. In addition, each Lender may make disclosure of such information to any contractual
counterparty in swap agreements or such contractual counterparty’s professional advisors (so long as such contractual counterparty
or professional advisors agree to be bound by the provisions of this §18.7). In addition, the Agent and the Lenders may disclose
the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the
lending industry and service providers to the Agent and the Lenders in connection with the administration of this Agreement, the
other Loan Documents, and the Commitments. For purposes of this Section, “Information” means all information received
from the REIT or any of its Subsidiaries relating to the REIT or any of its Subsidiaries or any of their respective businesses,
other than any such information that is available to the Agent, any Lender or any Issuing Lender on a nonconfidential basis prior
to disclosure by the REIT or any of its Subsidiaries; provided that, in the case of information received from the REIT or any of
its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person
required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as
such Person would accord to its own confidential information. Information shall not include any information which is or subsequently
becomes publicly available other than as a result of a disclosure of such Information by a Lender, or prior to the delivery to
such Lender is within the possession of such Lender if such Information is not known by such Lender to be subject to another confidentiality
agreement with or other obligations of secrecy to the Borrower or the Guarantors, or is independently developed by such Lender
or is disclosed with the prior approval of the Borrower. Nothing herein shall prohibit Information to the extent necessary to enforce
the Loan Documents.

 

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§18.8     Mandatory
Assignment. In the event the Borrower requests that certain amendments, modifications or waivers be made to this Agreement
or any of the other Loan Documents which request requires approval of the Required Lenders, all of the Lenders or all of the Lenders
directly affected thereby but is not approved by one or more of the Lenders (any such non-consenting Lender shall hereafter be
referred to as the “Non-Consenting Lender”), then, within thirty (30) days after the Borrower’s receipt
of notice of such disapproval by such Non-Consenting Lender, the Borrower shall have the right as to such Non-Consenting Lender,
to be exercised by delivery of written notice delivered to the Agent and the Non-Consenting Lender within thirty (30) days of receipt
of such notice, to elect to cause the Non-Consenting Lender to transfer its Commitment. The Agent shall promptly notify the remaining
Lenders that each of such Lenders shall have the right, but not the obligation, to acquire a portion of the Commitment, pro rata
based upon their relevant Commitment Percentages, of the Non-Consenting Lender (or if any of such Lenders does not elect to purchase
its pro rata share, then to such remaining Lenders in such proportion as approved by the Agent). In the event that the Lenders
do not elect to acquire all of the Non-Consenting Lender’s Commitment, then the Agent shall endeavor to find a new Lender
or Lenders to acquire such remaining Commitment. Upon any such purchase of the Commitment of the Non-Consenting Lender, the Non-Consenting
Lender’s interests in the Obligations and its rights hereunder and under the Loan Documents shall terminate at the date of
purchase, and the Non-Consenting Lender shall promptly execute and deliver any and all documents reasonably requested by the Agent
to surrender and transfer such interest, including, without limitation, an Assignment and Acceptance Agreement and such Non-Consenting
Lender’s original Note or Notes. Notwithstanding anything in this §18.8 to the contrary, any Lender or other Lender
assignee acquiring some or all of the assigned Commitment of the Non-Consenting Lender must consent to the proposed amendment,
modification or waiver. The purchase price for the Non-Consenting Lender’s Commitment shall equal any and all amounts outstanding
and owed by the Borrower to the Non-Consenting Lender, including principal and all accrued and unpaid interest or fees, plus any
applicable amounts payable pursuant to §4.7 which would be owed to such Non-Consenting Lender if the Loans were to be repaid
in full on the date of such purchase of the Non-Consenting Lender’s Commitment (provided that the Borrower may pay
to such Non-Consenting Lender any interest, fees or other amounts (other than principal) owing to such Non-Consenting Lender).

 

§18.9     Amendments
to Loan Documents. Upon any such assignment described in the foregoing §18.1 or §18.8, the Borrower and the Guarantors
shall, upon the request of the Agent, enter into such documents as may be reasonably required by the Agent to modify the Loan Documents
to reflect such assignment.

 

§18.10   Titled
Agents. The Titled Agents shall not have any additional rights or obligations under the Loan Documents, except for those rights,
if any, as a Lender.

 

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§19.       NOTICES;
EFFECTIVENESS; ELECTRONIC COMMUNICATIONS.

 

(a)          Each
notice, demand, election or request provided for or permitted to be given pursuant to this Agreement (hereinafter in this §19
referred to as “Notice”), but specifically excluding to the maximum extent permitted by law any notices of the
institution or commencement of foreclosure proceedings, must be in writing and shall be deemed to have been properly given or served
by personal delivery or by sending same by overnight courier or by depositing same in the United States Mail, postpaid and registered
or certified, return receipt requested, or as expressly permitted herein, by telecopy and addressed as follows:

 

If to the Agent or KeyBank:

 

KeyBank National Association

127 Public Square

Cleveland, Ohio 44144

Attn: Sara Jo Smith

Email: Sara_Jo_Smith@KeyBank.com

Telecopy No.: (216) 689-5819

 

With a copy to:

 

Dentons US LLP

Suite 5300

303 Peachtree Street, N.E.

Atlanta, Georgia 30308

Attn: William F. Timmons, Esq.

Email: bill.timmons@dentons.com

Telecopy No.: (404) 527-4198

 

If to the Borrower:

 

Jernigan Capital Operating Company,
LLC

6410 Poplar Avenue

Suite 650

Memphis, Tennessee 38119

Attn: John A. Good and Kelly P. Luttrell

Email: john@jernigancapital.com and Kelly@jernigancapital.com

Telecopy No.: (901) 201-5813

 

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With a copy to:

 

Morrison & Foerster LLP

250 W. 55th Street

New York, New York 10019

Attn: Jeffrey J. Temple

Email: JTemple@mofo.com

Telecopy No.: (212) 468-7900

 

to any other Lender which is a party hereto,
at the address for such Lender set forth on its signature page hereto, and to any Lender which may hereafter become a party to
this Agreement, at such address as may be designated by such Lender. Each Notice shall be effective upon being personally delivered
or upon being sent by overnight courier or upon being deposited in the United States Mail as aforesaid, or if transmitted by telecopy
is permitted, upon being sent and confirmation of receipt. The time period in which a response to such Notice must be given or
any action taken with respect thereto (if any), however, shall commence to run from the date of receipt if personally delivered
or sent by overnight courier, or if so deposited in the United States Mail, the earlier of three (3) Business Days following such
deposit or the date of receipt as disclosed on the return receipt. Rejection or other refusal to accept or the inability to deliver
because of changed address for which no notice was given shall be deemed to be receipt of the Notice sent. By giving at least fifteen
(15) days prior Notice thereof, the Borrower, a Lender or the Agent shall have the right from time to time and at any time during
the term of this Agreement to change their respective addresses and each shall have the right to specify as its address any other
address within the United States of America.

 

(b)          Loan
Documents and notices under the Loan Documents may, with Agent’s approval, be transmitted and/or signed by facsimile and
by signatures delivered in “PDF” format by electronic mail. The effectiveness of any such documents and signatures
shall, subject to Applicable Law, have the same force and effect as an original copy with manual signatures and shall be binding
on the Borrower, the Guarantors, Agent and Lenders. Agent may also require that any such documents and signature delivered by facsimile
or “PDF” format by electronic mail be confirmed by a manually-signed original thereof; provided, however, that the
failure to request or deliver any such manually-signed original shall not affect the effectiveness of any facsimile or “PDF”
document or signature.

 

(c)          Notices
and other communications to the Agent, the Lenders and the Issuing Lender hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Agent, provided that
the foregoing shall not apply to notices to any Lender or Issuing Lender pursuant to §2 if such Lender or Issuing Lender,
as applicable, has notified the Agent that it is incapable of receiving notices under such Section by electronic communication.
The Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that approval of such procedures may be limited to particular notices
or communications. Unless the Agent otherwise prescribes, (i) notices and other communications sent to an e-mail address shall
be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return
receipt requested” function, as available, return e-mail or other written acknowledgement), and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient, at its e-mail
address as described in the foregoing clause (i), of notification that such notice or communication is available and identifying
the website address therefor; provided that, for both clauses (i) and (ii) above, if such notice, e-mail or other communication
is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at
the opening of business on the next business day for the recipient.

 

    141

     

    

 

§20.       RELATIONSHIP.

 

Neither the Agent nor
any Lender has any fiduciary relationship with or fiduciary duty to the Borrower, any Guarantor or their respective Subsidiaries
arising out of or in connection with this Agreement or the other Loan Documents or the transactions contemplated hereunder and
thereunder, and the relationship between each Lender and the Agent, and the Borrower is solely that of a lender and borrower, and
nothing contained herein or in any of the other Loan Documents shall in any manner be construed as making the parties hereto partners,
joint venturers or any other relationship other than lender and borrower.

 

§21.       GOVERNING
LAW; CONSENT TO JURISDICTION AND SERVICE.

 

THIS AGREEMENT AND
EACH OF THE OTHER LOAN DOCUMENTS, EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN OR THEREIN, SHALL, PURSUANT TO NEW YORK GENERAL
OBLIGATIONS LAW SECTION 5- 1401, BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. THE BORROWER AGREES THAT ANY SUIT FOR THE
ENFORCEMENT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS MAY BE BROUGHT IN ANY COURT OF COMPETENT JURISDICTION IN THE STATE
OF NEW YORK (INCLUDING ANY FEDERAL COURT SITTING THEREIN). THE BORROWER FURTHER ACCEPTS, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF SUCH COURTS AND ANY RELATED APPELLATE COURT AND IRREVOCABLY (a) AGREES TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY WITH RESPECT TO THIS AGREEMENT AND ANY OF THE OTHER LOAN DOCUMENTS AND (b) WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER
HAVE AS TO THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH A COURT IS AN INCONVENIENT FORUM. THE BORROWER
FURTHER AGREES THAT SERVICE OF PROCESS IN ANY SUCH SUIT MAY BE MADE UPON THE BORROWER BY MAIL AT THE ADDRESS SPECIFIED IN §19.
IN ADDITION TO THE COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN, THE AGENT OR ANY LENDER MAY BRING ACTION(S)
FOR ENFORCEMENT ON A NONEXCLUSIVE BASIS WHERE ANY COLLATERAL OR OTHER ASSETS OF THE BORROWER AND THE GUARANTORS EXIST AND THE BORROWER
CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURTS AND THE SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON THE BORROWER
BY MAIL AT THE ADDRESS SPECIFIED IN §19.

 

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§22.       HEADINGS.

 

The captions in this
Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

 

§23.       COUNTERPARTS.

 

This Agreement and
any amendment hereof may be executed in several counterparts and by each party on a separate counterpart, each of which when so
executed and delivered shall be an original, and all of which together shall constitute one instrument. In proving this Agreement
it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement
is sought.

 

§24.       ENTIRE
AGREEMENT, ETC.

 

This Agreement and
the Loan Documents is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by this
Agreement and the Loan Documents. All prior or contemporaneous promises, agreements and understandings, whether oral or written,
are deemed to be superseded by this Agreement and the Loan Documents, and no party is relying on any promise, agreement or understanding
not set forth in this Agreement and the Loan Documents. Neither this Agreement nor any term hereof may be changed, waived, discharged
or terminated, except as provided in §27.

 

§25.       WAIVER
OF JURY TRIAL AND CERTAIN DAMAGE CLAIMS.

 

EACH OF THE BORROWER,
THE AGENT AND THE LENDERS HEREBY WAIVES ITS RESPECTIVE RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF
ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY NOTE OR ANY OF THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER
OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. THE BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER
IN ANY SUCH LITIGATION ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES AND TO THE EXTENT PERMITTED BY APPLICABLE LAW, PUNITIVE OR
ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE BORROWER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY LENDER OR THE AGENT HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH LENDER OR THE AGENT WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE AGENT AND THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH THEY ARE PARTIES BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS CONTAINED
IN THIS §25. THE BORROWER ACKNOWLEDGES THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS §25 WITH LEGAL COUNSEL AND THAT
THE BORROWER AGREES TO THE FOREGOING AS ITS FREE, KNOWING AND VOLUNTARY ACT.

 

    	143

     

    

 

§26.       DEALINGS
WITH THE BORROWER.

 

The Agent, the Lenders
and their Affiliates may accept deposits from, extend credit to, invest in, act as trustee under indentures of, serve as financial
advisor of, and generally engage in any kind of banking, investment banking, trust or other business with the Borrower, the Guarantors
and their respective Subsidiaries or any of their Affiliates regardless of the capacity of the Agent or the Lender hereunder. The
Lenders acknowledge that, pursuant to such activities, KeyBank or its Affiliates may receive information regarding such Persons
(including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent
shall be under no obligation to provide such information to them. Borrower acknowledges, on behalf of itself and its Affiliates,
that the Agent and each of the Lenders and their respective Affiliates may be providing debt financing, equity capital or other
services (including financial advisory services) in which Borrower and its Affiliates may have conflicting interests regarding
the transactions described herein and otherwise. Neither the Agent nor any Lender will use confidential information described in
§18.7 obtained from Borrower by virtue of the transactions contemplated hereby or its other relationships with Borrower and
its Affiliates in connection with the performance by the Agent or such Lender or their respective Affiliates of services for other
companies, and neither the Agent nor any Lender nor their Affiliates will furnish any such information to other companies. Borrower,
on behalf of itself and its Affiliates, also acknowledges that neither the Agent nor any Lender has any obligation to use in connection
with the transactions contemplated hereby, or to furnish to Borrower, confidential information obtained from other companies. Borrower,
on behalf of itself and its Affiliates, further acknowledges that one or more of the Agent and Lenders and their respective Affiliates
may be a full service securities firm and may from time to time effect transactions, for its own or its Affiliates’ account
or the account of customers, and hold positions in loans, securities or options on loans or securities of Borrower and its Affiliates.

 

    	144

     

    

 

§27.       CONSENTS,
AMENDMENTS, WAIVERS, ETC.

 

(a)          Except
as otherwise expressly provided in this Agreement, any consent or approval required or permitted by this Agreement may be given,
and any term of this Agreement or of any other instrument related hereto or mentioned herein may be amended, and the performance
or observance by the Borrower or the Guarantors of any terms of this Agreement or such other instrument or the continuance of any
Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or prospectively)
with, but only with, the written consent of the Required Lenders. Notwithstanding the foregoing, none of the following may occur
without the written consent of: (i) in the case of a reduction in the rate of interest on the Notes (other than a reduction or
waiver of default interest), the consent of each Lender holding a Note affected by such interest rate reduction; (ii) in the case
of an increase in the Commitment or the amount of the Commitments of the Lenders (in each case, except as provided in §2.11
and §18.1), the consent of each Lender whose Commitment is increased; (iii) in the case of a forgiveness, reduction or waiver
of the principal of any unpaid Loan or any interest thereon (other than a reduction or waiver of default interest) or fee payable
under the Loan Documents, the consent of each Lender that would have otherwise received such principal, interest or fee; (iv) in
the case of a change in the amount of any fee payable to a Lender hereunder, the consent of each Lender to which such fee would
otherwise be owed; (v) in the case of the postponement of any date fixed for any payment of principal of or interest on the Loan,
the consent of each Lender that would otherwise have received such principal or interest at an earlier date; (vi) in the case of
an extension of the Revolving Credit Maturity Date (except as provided in §2.12) each Lender whose Commitment is thereby extended;
(vii) in the case of a change in the manner of distribution of any payments to the Lenders or the Agent, the consent of each Lender
or the Agent directly affected thereby; (viii) in the case of the release of the Borrower, any Guarantor or any Collateral except
as otherwise provided in this Agreement (including, without limitation, the release of any Borrowing Base Assets), each Lender
directly affected thereby; (ix) in the case of an amendment of the definition of Required Lenders or of any requirement for consent
by all of the Lenders or all affected Lenders, each Lender directly affected thereby; (x) in the case of any modification to require
a Lender to fund a pro rata share of a request for an advance of a Loan made by the Borrower other than based on such Lender’s
applicable Commitment Percentage, the consent of each such Lender thereby required to fund a pro rata share other than based on
its applicable Commitment Percentage; (xi) in the case of an amendment to this §27, each Lender directly affected thereby;
or (xii) in the case of an amendment of any provision of this Agreement or the Loan Documents which requires the approval of all
of the Lenders or the Required Lenders, to require a lesser number of Lenders to approve such action, each Lender directly affected
thereby. Any fee letter may be amended, or rights or privileges thereunder waived, in a writing executed by the parties thereto.
The provisions of §14 may not be amended without the written consent of the Agent. There shall be no amendment, modification
or waiver of any provision in the Loan Documents with respect to Swing Loans without the consent of the Swing Loan Lender, nor
any amendment, modification or waiver of any provision in the Loan Documents with respect to Letters of Credit without the consent
of the Issuing Lender. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or
disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent
of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders,
except that (x) the Commitment of any Defaulting Lender may not be increased without the consent of such Lender and (y) any
waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting
Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender. No waiver shall extend to
or affect any obligation not expressly waived or impair any right consequent thereon. No course of dealing or delay or omission
on the part of the Agent or any Lender in exercising any right shall operate as a waiver thereof or otherwise be prejudicial thereto.
No notice to or demand upon the Borrower shall entitle the Borrower to other or further notice or demand in similar or other circumstances.

 

(b)          Further
notwithstanding anything to the contrary in this §27, if the Agent and the Borrower have jointly identified an ambiguity,
omission, mistake or defect in any provision of this Agreement or the other Loan Documents or an inconsistency between provisions
of this Agreement and/or the other Loan Documents, the Agent and the Borrower shall be permitted to amend such provision or provisions
to cure such ambiguity, omission, mistake, defect or inconsistency so long as to do so would not adversely affect the interest
of the Lenders. Any such amendment shall become effective without any further or consent of any of other party to this Agreement.

 

    	145

     

    

 

§28.       SEVERABILITY.

 

The provisions of this
Agreement are severable, and if any one clause or provision hereof shall be held invalid or unenforceable in whole or in part in
any jurisdiction, then such invalidity or unenforceability shall affect only such clause or provision, or part thereof, in such
jurisdiction, and shall not in any manner affect such clause or provision in any other jurisdiction, or any other clause or provision
of this Agreement in any jurisdiction.

 

§29.       TIME
OF THE ESSENCE.

 

Time is of the essence
with respect to each and every covenant, agreement and obligation of the Borrower and the Guarantors under this Agreement and the
other Loan Documents.

 

§30.       NO
UNWRITTEN AGREEMENTS.

 

THE LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. ANY ADDITIONAL TERMS OF THE AGREEMENT
BETWEEN THE PARTIES ARE SET FORTH BELOW.

 

§31.       REPLACEMENT
NOTES.

 

Upon receipt of evidence
reasonably satisfactory to the Borrower of the loss, theft, destruction or mutilation of any Note, and in the case of any such
loss, theft or destruction, upon delivery of an indemnity agreement reasonably satisfactory to the Borrower or, in the case of
any such mutilation, upon surrender and cancellation of the applicable Note, the Borrower will execute and deliver, in lieu thereof,
a replacement Note, identical in form and substance to the applicable Note and dated as of the date of the applicable Note and
upon such execution and delivery all references in the Loan Documents to such Note shall be deemed to refer to such replacement
Note.

 

§32.       NO
THIRD PARTIES BENEFITED.

 

This Agreement and
the other Loan Documents are made and entered into for the sole protection and legal benefit of the Borrower, the Guarantors, the
Lenders, the Agent, the Arrangers and their permitted successors and assigns, and no other Person shall be a direct or indirect
legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the
other Loan Documents. All conditions to the performance of the obligations of the Agent and the Lenders under this Agreement, including
the obligation to make Loans and issue Letters of Credit, are imposed solely and exclusively for the benefit of the Agent and the
Lenders and no other Person shall have standing to require satisfaction of such conditions in accordance with their terms or be
entitled to assume that the Agent and the Lenders will refuse to make Loans or issue Letters of Credit 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 and all of which may be freely waived in whole or in part by the Agent and the Lenders at any time if in their sole discretion
they deem it desirable to do so. In particular, the Agent and the Lenders make no representations and assume no obligations as
to third parties concerning the quality of any construction by the Borrower or any of its Subsidiaries of any development or the
absence therefrom of defects.

 

    	146

     

    

 

§33.       PATRIOT
ACT.

 

Each Lender and the
Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that, pursuant to the requirements of the Patriot
Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes names and
addresses and other information that will allow such Lender or the Agent, as applicable, to identify the Borrower in accordance
with the Patriot Act.

 

§34.       ACKNOWLEDGEMENT
AND CONSENT TO BAIL-IN OF EEA FINANCIAL INSTITUTIONS.

 

Notwithstanding anything
to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party
hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability
is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to,
and acknowledges and agrees to be bound by:

 

(a)          the
application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which
may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)          the
effects of any Bail-In Action on any such liability, including, if applicable:

 

(i)          a
reduction in full or in part or cancellation of any such liability;

 

(ii)         a
conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution,
its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or
other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement
or any other Loan Document; or

 

(iii)        the
variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution
Authority.

 

§35.       WAIVER
OF CLAIMS.

 

Borrower for itself
and Guarantors acknowledges, represents and agrees that Borrower and Guarantors as of the date hereof have no defenses, setoffs,
claims, counterclaims or causes of action of any kind or nature whatsoever with respect to the “Loan Documents” (as
defined in the Existing Credit Agreement and this Agreement), the administration or funding of the “Loans” (as defined
in the Existing Credit Agreement and this Agreement), or with respect to any acts or omissions of Agent or any Lender, or any past
or present officers, agents or employees of Agent or any Lender (whether under the Existing Credit Agreement, this Agreement or
any of such “Loan Documents”), and each of Borrower and Guarantors does hereby expressly waive, release and relinquish
any and all such defenses, setoffs, claims, counterclaims and causes of action, if any.

 

    	147

     

    

 

§36.       CONSENT
TO AMENDMENT AND RESTATEMENT; EFFECT OF AMENDMENT AND RESTATEMENT.

 

Pursuant to §27
of the Existing Credit Agreement, KeyBank as Agent under the Existing Credit Agreement and each Lender hereby consents to the amendment
and restatement of the Existing Credit Agreement pursuant to the terms of this Agreement and the amendment or amendment and restatement
of the other “Loan Documents” (as defined in the Existing Credit Agreement), and by execution hereof the Lenders authorize
Agent to enter into such agreements. On the Closing Date, the Existing Credit Agreement shall be amended and restated in its entirety
by this Agreement, and the Existing Credit Agreement, except as specifically set forth herein, shall thereafter be of no further
force and effect and shall be deemed replaced and superseded in all respects by this Agreement. The parties hereto acknowledge
and agree that this Agreement does not constitute a novation or termination of the “Obligations” under the Existing
Credit Agreement, which remain outstanding as of the Closing Date. All interest and fees accrued and unpaid under the Existing
Credit Agreement as of the date of this Agreement shall be due and payable in the amount determined pursuant to the Existing Credit
Agreement for periods prior to the Closing Date on the next payment date for such interest or fee set forth in this Agreement.

 

[Remainder of page intentionally left blank.]

 

    	148

     

    

 

IN WITNESS WHEREOF,
each of the undersigned have caused this Agreement to be executed by its duly authorized representatives as of the date first set
forth above.

 

	 	BORROWER:
	 	 
	 	JERNIGAN CAPITAL OPERATING

 COMPANY, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member
	 	 	 	 
	 	 	By:	/s/ Kelly Luttrell
	 	 	Name:	Kelly Luttrell
	 	 	Title:	Senior Vice President, Chief Financial Officer and Treasurer
	 	 	 	 
	 	 	 	(SEAL)

 

[Signatures Continued on Next Page]

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	AGENT AND LENDERS:
	 	 
	 	KEYBANK NATIONAL ASSOCIATION,
	 	individually as a Lender and as the Agent
	 	 
	 	By:	/s/ Sara Jo Smith
	 	Name:	Sara Jo Smith
	 	Title:	Vice President

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	RAYMOND JAMES BANK, N.A.
	 	 
	 	By:	/s/ Matt Stein
	 	Name:	Matt Stein
	 	Title:	Senior Vice President

 

Raymond James Bank, N.A.

710 Carillon Parkway

St. Petersburg, FL 33716

Attn: Matt Stein

Tel. 727-567-5118

Fax 1-866-205-1396

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	TRUSTMARK NATIONAL BANK
	 	 
	 	By:	/s/ Robert Whartenby
	 	Name:	Robert Whartenby
	 	Title:	FVP

 

Trustmark National Bank

5350 Poplar Avenue, Suite 210

Memphis, TN 38119

Attn: Robert Whartenby

Tel. 901-309-6220

Fax 901-309-6236

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	FIRSTBANK
	 	 
	 	By:	 /s/ Bill Harter
	 	Name:	Bill Harter
	 	Title:	Senior Vice President

 

FirstBank

6815 Poplar Avenue, Suite 100

Germantown, TN 38138

Attn: Bill Harter

Tel. 901-820-5310

Fax 901-761-6851

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	TRIUMPH BANK
	 	 
	 	By:	/s/ Jeff Pedron
	 	Name:	Jeff Pedron
	 	Title:	Senior Vice President

 

Triumph Bank

5904 Ridgeway Center Pkwy

Memphis, TN 38120

Attn: Jeffrey L. Pedron

Tel. 901-333-8834

Fax 901-761-0008

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	RENASANT BANK
	 	 
	 	By:	/s/ Michael Peeler
	 	Name:	Michael Peeler
	 	Title:	Senior Managing Director

 

Renasant Bank

1661 Aaron Brenner Drive, Suite 100

Memphis, TN 38120

Attn: Michael Peeler

Tel. 901-969-8016

Fax 901-969-8100

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	PINNACLE BANK
	 	 
	 	By:	/s/ Joelle Rogin
	 	Name:	Joelle Rogin
	 	Title:	Senior Vice President

 

Pinnacle Bank

949 Shady Grove Road South, Suite 200

Memphis, TN 38120

Attn: Joelle Rogin, Senior Vice President

Tel. 901-259-2127

Fax 902-261-1919

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

	 	BMO HARRIS BANK N.A.
	 	 
	 	By:	/s/ Kevin Fennell
	 	Name:	Kevin Fennell
	 	Title:	Director

 

BMO Harris Bank N.A.

115 S. LaSalle Street, 17th
Floor

Chicago, Illinois 60603

Attn: Kevin Fennell

Tel. 312-461-7788

 

KeyBank
/ Jernigan Capital First Amended and Restated Credit Agreement 2018

 

    	 

     

    

 

EXHIBIT A

 

FORM
OF JOINDER AGREEMENT

 

THIS JOINDER AGREEMENT
(“Joinder Agreement”) is executed as of ___________, 201_, by _______________________________, a __________________________
(“Joining Party”), and delivered to KeyBank National Association, as Agent, pursuant to §5.5 of that certain First
Amended and Restated Credit Agreement dated as of December 28, 2018, as from time to time in effect (the “Credit Agreement”),
by and among Jernigan Capital Operating Company, LLC (the “Borrower”), KeyBank National Association, for itself and
as the Agent, and the other Lenders from time to time party thereto. Terms used but not defined in this Joinder Agreement shall
have the meanings defined for those terms in the Credit Agreement.

 

RECITALS

 

A.           Joining
Party is required, pursuant to §5.5 of the Credit Agreement, to become an additional Guarantor under the Guaranty, the Indemnity
Agreement and the Contribution Agreement.

 

B.           Joining
Party expects to realize direct and indirect benefits as a result of the availability to the Borrower of the credit facilities
under the Credit Agreement.

 

NOW, THEREFORE, Joining
Party agrees as follows:

 

AGREEMENT

 

1.            Joinder.
By this Joinder Agreement, Joining Party hereby becomes a “Subsidiary Guarantor” and a “Guarantor” under
the Credit Agreement, the Guaranty, the Indemnity Agreement and the other Loan Documents with respect to all the Obligations of
the Borrower now or hereafter incurred under the Credit Agreement and the other Loan Documents, and a “Guarantor”
under the Contribution Agreement. Joining Party agrees that Joining Party is and shall be bound by, and hereby assumes, all representations,
warranties, covenants, terms, conditions, duties and waivers applicable to a “Subsidiary Guarantor” and a “Guarantor”
under the Credit Agreement, the Guaranty, the Indemnity Agreement, the other Loan Documents and the Contribution Agreement.

 

2.            Representations
and Warranties of Joining Party. Joining Party represents and warrants to Agent that, as of the Effective Date (as defined
below), the representations and warranties contained in the Credit Agreement and the other Loan Documents applicable to a “Subsidiary
Guarantor” or “Guarantor” are true and correct in all material respects as applied to Joining Party as a Subsidiary
Guarantor and a Guarantor on and as of the Effective Date as though made on that date. As of the Effective Date, all covenants
and agreements in the Loan Documents and the Contribution Agreement of the Guarantors apply to Joining Party and no Default or
Event of Default shall exist or might exist upon the Effective Date in the event that Joining Party becomes a Guarantor.

 

    	A-1

     

    

 

3.            Joint
and Several. Joining Party hereby agrees that, as of the Effective Date, the Guaranty, the Contribution Agreement and the
Indemnity Agreement heretofore delivered to the Agent and the Lenders shall be a joint and several obligation of Joining Party
to the same extent as if executed and delivered by Joining Party, and upon request by the Agent, will promptly become a party
to the Guaranty, the Contribution Agreement and the Indemnity Agreement to confirm such obligation.

 

4.            Further
Assurances. Joining Party agrees to execute and deliver such other instruments and documents and take such other action, as
the Agent may reasonably request, in connection with the transactions contemplated by this Joinder Agreement.

 

5.            GOVERNING
LAW. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS
LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

6.            Counterparts.
This Joinder Agreement may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 

The effective date (the “Effective
Date”) of this Joinder Agreement is _________________, 201__.

 

IN WITNESS WHEREOF,
Joining Party has executed this Joinder Agreement under seal as of the day and year first above written.

 

	 	“JOINING PARTY”
	 	 
	 	_________________________________________________, a
	 	_________________________________________________
	 	 
	 	By: ______________________________________________
	 	Name: ____________________________________________
	 	Title: _____________________________________________
	 	 
	 	[SEAL]

 

ACKNOWLEDGED:

 

KEYBANK NATIONAL ASSOCIATION, as Agent

 

	By:	 	 
	 	 	 
	Its:	 	 

 

    	A-2

     

    

 

EXHIBIT B

 

FORM
OF REVOLVING CREDIT NOTE

 

	$______________	_____________, 201__

 

FOR VALUE RECEIVED,
the undersigned (“Maker”), hereby promises to pay to ________________ __________________ (“Payee”) or its
successors and permitted assigns, in accordance with the terms of that certain First Amended and Restated Credit Agreement dated
as of December 28, 2018, as from time to time in effect, by and among Maker, KeyBank National Association, for itself and as Agent,
and such other Lenders as may be from time to time named therein (the “Credit Agreement”), to the extent not sooner
paid, on or before the Revolving Credit Maturity Date, the principal sum of _________________ ($__________), or such amount as
may be advanced by the Payee under the Credit Agreement as a Revolving Credit Loan with daily interest from the date thereof, computed
as provided in the Credit Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each portion
of the principal amount which shall at all times be equal to the rate of interest applicable to such portion in accordance with
the Credit Agreement, and with interest on overdue principal and, to the extent permitted by Applicable Law, on overdue installments
of interest and late charges at the rates provided in the Credit Agreement. Interest shall be payable on the dates specified in
the Credit Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment
in full hereof. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Credit
Agreement.

 

Payments hereunder
shall be made to the Agent for the Payee at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other address as Agent may
designate from time to time.

 

This Note is one of
one or more Revolving Credit Notes evidencing borrowings under and is entitled to the benefits and subject to the provisions of
the Credit Agreement. The principal of this Note may be due and payable in whole or in part prior to the Revolving Credit Maturity
Date and is subject to mandatory prepayment in the amounts and under the circumstances set forth in the Credit Agreement, and may
be prepaid in whole or from time to time in part, all as set forth in the Credit Agreement.

 

Notwithstanding anything
in this Note to the contrary, all agreements between the undersigned Maker and the Lenders and the Agent, whether now existing
or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration
of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Lenders exceed
the maximum amount permissible under Applicable Law. If, from any circumstance whatsoever, interest would otherwise be payable
to the Lenders in excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced to the maximum amount
permitted under Applicable Law; and if from any circumstance the Lenders shall ever receive anything of value deemed interest by
Applicable Law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction
of the principal balance of the Obligations of the undersigned Maker and to the payment of interest or, if such excessive interest
exceeds the unpaid balance of principal of the Obligations of the undersigned Maker, such excess shall be refunded to the undersigned
Maker. All interest paid or agreed to be paid to the Lenders shall, to the extent permitted by Applicable Law, be amortized, prorated,
allocated and spread throughout the full period until payment in full of the principal of the Obligations of the undersigned Maker
(including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the
maximum amount permitted by Applicable Law. This paragraph shall control all agreements between the undersigned Maker and the Lenders
and the Agent.

 

    	B-1

     

    

 

In case an Event of
Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the manner and with
the effect provided in said Credit Agreement.

 

This Note shall, pursuant
to New York General Obligations Law Section 5-1401, be governed by the laws of the State of New York.

 

The undersigned Maker
hereby waives presentment, demand, notice, protest, notice of intention to accelerate the indebtedness evidenced hereby, notice
of acceleration of the indebtedness evidenced hereby and all other demands and notices in connection with the delivery, acceptance,
performance and enforcement of this Note, except as specifically otherwise provided in the Credit Agreement, and assent to extensions
of time of payment or forbearance or other indulgence without notice.

 

[This Note is issued
in amendment, restatement and replacement of that certain Revolving Credit Note dated _________________, made by the undersigned
maker to the order of the Payee and issued pursuant to the Existing Credit Agreement (the “Prior Note”), and shall
supersede and replace the Prior Note in all respects. The execution and delivery by the undersigned of this Note shall not, in
any manner or circumstance, be deemed to be a payment of, a novation of or to have terminated, extinguished or discharged any of
the undersigned’s indebtedness evidenced by the Prior Note, all of which indebtedness shall continue under, and shall hereinafter
be evidenced and governed by, this Note.]

 

IN WITNESS WHEREOF,
the undersigned has by its duly authorized officer executed this Note on the day and year first above written.

 

	 	JERNIGAN CAPITAL OPERATING

 COMPANY, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	Jernigan Capital, Inc., a Maryland limited liability company, its managing member
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	(SEAL)

 

    	B-2

     

    

 

EXHIBIT C

 

FORM
OF SWING LOAN NOTE

 

	$__________________	__________, 2018

 

FOR VALUE RECEIVED,
the undersigned (“Maker”), hereby promises to pay to ________________ __________________ (“Payee”) or its
successors and permitted assigns, in accordance with the terms of that certain First Amended and Restated Credit Agreement dated
as December 28, 2018, as from time to time in effect, by and among Maker, KeyBank National Association, for itself and as Agent,
and such other Lenders as may be from time to time named therein (the “Credit Agreement”), to the extent not sooner
paid, on or before the Revolving Credit Maturity Date, the principal sum of ______________________ and No/100 Dollars ($___________________),
or such amount as may be advanced by the Payee under the Credit Agreement as a Swing Loan with daily interest from the date thereof,
computed as provided in the Credit Agreement, on the principal amount hereof from time to time unpaid, at a rate per annum on each
portion of the principal amount which shall at all times be equal to the rate of interest applicable to such portion in accordance
with the Credit Agreement, and with interest on overdue principal and, to the extent permitted by Applicable Law, on overdue installments
of interest and late charges at the rates provided in the Credit Agreement. Interest shall be payable on the dates specified in
the Credit Agreement, except that all accrued interest shall be paid at the stated or accelerated maturity hereof or upon the prepayment
in full hereof. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in the Credit
Agreement.

 

Payments hereunder
shall be made to the Agent for the Payee at 127 Public Square, Cleveland, Ohio 44114-1306, or at such other address as Agent may
designate from time to time.

 

This Note is the Swing
Loan Note evidencing borrowings of Swing Loans under and is entitled to the benefits and subject to the provisions of the Credit
Agreement. The principal of this Note may be due and payable in whole or in part prior to the Revolving Credit Maturity Date and
is subject to mandatory prepayment in the amounts and under the circumstances set forth in the Credit Agreement, and may be prepaid
in whole or from time to time in part, all as set forth in the Credit Agreement.

 

Notwithstanding anything
in this Note to the contrary, all agreements between the undersigned Maker and the Lenders and the Agent, whether now existing
or hereafter arising and whether written or oral, are hereby limited so that in no contingency, whether by reason of acceleration
of the maturity of any of the Obligations or otherwise, shall the interest contracted for, charged or received by the Lenders exceed
the maximum amount permissible under Applicable Law. If, from any circumstance whatsoever, interest would otherwise be payable
to the Lenders in excess of the maximum lawful amount, the interest payable to the Lenders shall be reduced to the maximum amount
permitted under Applicable Law; and if from any circumstance the Lenders shall ever receive anything of value deemed interest by
Applicable Law in excess of the maximum lawful amount, an amount equal to any excessive interest shall be applied to the reduction
of the principal balance of the Obligations of the undersigned Maker and to the payment of interest or, if such excessive interest
exceeds the unpaid balance of principal of the Obligations of the undersigned Maker, such excess shall be refunded to the undersigned
Maker. All interest paid or agreed to be paid to the Lenders shall, to the extent permitted by Applicable Law, be amortized, prorated,
allocated and spread throughout the full period until payment in full of the principal of the Obligations of the undersigned Maker
(including the period of any renewal or extension thereof) so that the interest thereon for such full period shall not exceed the
maximum amount permitted by Applicable Law. This paragraph shall control all agreements between the undersigned Maker and the Lenders
and the Agent.

 

    	C-1

     

    

 

In case an Event of
Default shall occur, the entire principal amount of this Note may become or be declared due and payable in the manner and with
the effect provided in said Credit Agreement.

 

This Note shall, pursuant
to New York General Obligations Law Section 5-1401, be governed by the laws of the State of New York.

 

The undersigned Maker
hereby waives presentment, demand, notice, protest, notice of intention to accelerate the indebtedness evidenced hereby, notice
of acceleration of the indebtedness evidenced hereby and all other demands and notices in connection with the delivery, acceptance,
performance and enforcement of this Note, except as specifically otherwise provided in the Credit Agreement, and assent to extensions
of time of payment or forbearance or other indulgence without notice.

 

[This Note is issued
in amendment, restatement and replacement of that certain Swing Loan Note dated July 25, 2017, made by the undersigned maker
to the order of the Payee and issued pursuant to the Existing Credit Agreement (the “Prior Note”), and shall supersede
and replace the Prior Note in all respects. The execution and delivery by the undersigned of this Note shall not, in any manner
or circumstance, be deemed to be a payment of, a novation of or to have terminated, extinguished or discharged any of the undersigned’s
indebtedness evidenced by the Prior Note, all of which indebtedness shall continue under, and shall hereinafter be evidenced and
governed by, this Note.]

 

IN WITNESS WHEREOF,
the undersigned has by its duly authorized officer executed this Note on the day and year first above written.

 

	 	JERNIGAN CAPITAL OPERATING 

COMPANY, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	(SEAL)

 

    	C-2

     

    

 

EXHIBIT D

 

FORM
OF REQUEST FOR REVOLVING CREDIT LOAN

 

KeyBank National Association, as Agent

127 Public Square

Cleveland, Ohio 44114

Attn: Sara Jo Smith

Email: sara_jo_smith@keybank.com

 

KeyBank National Association, as Agent

726 Exchange Street, Suite 900

Buffalo, New York 14210

Attn: Yolanda Fields

Email: yolanda_fields@keybank.com

 

KeyBank National Association, as Agent

1200 Abernathy Road, Suite 1550

Atlanta, Georgia 30328

Attn: Tiffanie Grayson

Email: tiffanie_grayson@keybank.com

 

Ladies and Gentlemen:

 

Pursuant to the provisions
of §2.7 of that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as the same may hereafter
be amended, the “Credit Agreement”), by and among Jernigan Capital Operating Company, LLC (the “Borrower”),
KeyBank National Association for itself and as Agent, and the other Lenders from time to time party thereto, the Borrower hereby
requests and certifies as follows:

 

1.           Revolving
Credit Loan. The Borrower hereby requests a [Revolving Credit Loan under §2.1] [Swing Loan under §2.5] of
the Credit Agreement:

 

Principal Amount: $__________

Type (LIBOR Rate, Base Rate):

Drawdown Date:

Interest Period for LIBOR Rate Loans:

Tranche: [Tranche A Loan / Tranche B Loan/Tranche C Loan]

 

by credit to the general account of the
Borrower with the Agent at the Agent’s Head Office.

 

[If the requested
Loan is a Swing Loan and the Borrower desires for such Loan to be a LIBOR Rate Loan following its conversion as provided in §2.5(d),
specify the Interest Period following conversion:_________________]

 

2.           Use
of Proceeds. Such Loan shall be used for purposes permitted by §2.9 of the Credit Agreement.

 

    	D-1

     

    

 

3.           No
Default. Borrower certifies that the Borrower and the Guarantors are and will be in compliance with all covenants under the
Loan Documents after giving effect to the making of the Loan requested hereby and no Default or Event of Default has occurred and
is continuing. No condemnation proceedings are pending or, to the undersigned’s knowledge, threatened against any Borrowing
Base Asset, except as disclosed in writing to Agent.

 

4.           Representations
True. Borrower certifies, represents and agrees that each of the representations and warranties made by or on behalf of the
Borrower, the Guarantors or their respective Subsidiaries, contained in the Credit Agreement, in the other Loan Documents or in
any document or instrument delivered pursuant to or in connection with the Credit Agreement was true in all material respects as
of the date on which it was made and, is true in all material respects as of the date hereof and shall also be true in all material
respects at and as of the Drawdown Date for the Loan requested hereby, with the same effect as if made at and as of such Drawdown
Date, except to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed
that any representation or warranty which by its terms is made as of a specified date shall be required to be true and correct
only as of such specified date).

 

5.           Other
Conditions. The undersigned chief executive officer, president or chief financial officer of the Borrower certifies, represents
and agrees that all other conditions to the making of the Loan requested hereby set forth in the Credit Agreement have been satisfied
or waived in writing.

 

6.           Definitions.
Terms defined in the Credit Agreement are used herein with the meanings so defined.

 

IN WITNESS WHEREOF,
the undersigned has duly executed this request this _____ day of _____________, 201__.

 

	 	JERNIGAN CAPITAL OPERATING

 COMPANY, LLC, a Delaware limited liability company
	 	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member

 

	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	(SEAL)

 

    	D-2

     

    

 

EXHIBIT E

 

FORM
OF LETTER OF CREDIT REQUEST

 

[Date]

 

KeyBank National Association, as Agent

127 Public Square

Cleveland, Ohio 44114

Attn: Sara Jo Smith

Email: sara_jo_smith@keybank.com

 

KeyBank National Association, as Agent

726 Exchange Street, Suite 900

Buffalo, New York 14210

Attn: Yolanda Fields

Email: yolanda_fields@keybank.com

 

KeyBank National Association, as Agent

1200 Abernathy Road, Suite 1550

Atlanta, Georgia 30328

Attn: Tiffanie Grayson

Email: tiffanie_grayson@keybank.com

 

		Re:	Letter of Credit Request under Credit Agreement

 

Ladies and Gentlemen:

 

Pursuant to §2.10
of that certain First Amended and Restated Credit Agreement dated as of December 28, 2018, by and among you, certain other Lenders
and Jernigan Capital Operating Company, LLC (the “Borrower”), as amended from time to time (the “Credit Agreement”),
we hereby request that you issue a Letter of Credit as follows:

 

(i)          Name
and address of beneficiary:

 

(ii)         Face
amount: $

 

(iii)        Proposed
Issuance Date:

 

(iv)        Proposed
Expiration Date:

 

(v)         Other
terms and conditions as set forth in the proposed form of Letter of Credit attached hereto.

 

(vi)        Purpose
of Letter of Credit

 

(vii)       Tranche:
[Tranche A Loan/Tranche B Loan/Tranche C Loan]:

 

    	E-1

     

    

 

This Letter of Credit
Request is submitted pursuant to, and shall be governed by, and subject to satisfaction of, the terms, conditions and provisions
set forth in §2.10 of the Credit Agreement.

 

The Borrower certifies
that the Borrower is and will be in compliance with all covenants under the Loan Documents after giving effect to the issuance
of the Letter of Credit requested hereby and no Default or Event of Default has occurred and is continuing. No condemnation proceedings
are pending or, to the undersigned’s knowledge, threatened against any Borrowing Base Asset, except as disclosed in writing
to Agent.

 

We also understand
that if you grant this request this request obligates us to accept the requested Letter of Credit and pay the issuance fee and
Letter of Credit fee as required by §2.10(e). All capitalized terms defined in the Credit Agreement and used herein without
definition shall have the meanings set forth in §1.1 of the Credit Agreement.

 

The Borrower certifies,
represents and agrees that each of the representations and warranties made by or on behalf of the Borrower, the Guarantors or their
respective Subsidiaries, contained in the Credit Agreement, in the other Loan Documents or in any document or instrument delivered
pursuant to or in connection with the Credit Agreement was true in all material respects as of the date on which it was made, is
true in all material respects as of the date hereof and shall also be true in all material respects at and as of the proposed issuance
date of the Letter of Credit requested hereby, with the same effect as if made at and as of the proposed issuance date, except
to the extent of changes resulting from transactions permitted by the Loan Documents (it being understood and agreed that any representation
or warranty which by its terms is made as of a specified date shall be required to be true and correct only as of such specified
date).

 

	 	Very truly yours,
	 	 
	 	JERNIGAN CAPITAL OPERATING 

COMPANY, LLC, a Delaware limited liability company
	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member

 

	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	(SEAL)

 

    	E-2

     

    

 

EXHIBIT F

 

FORM
OF letter of credit application

 

 

    	F-1

     

    

  

 

    	F-2

     

    

 

 

    	F-3

     

    

 

 

    	F-4

     

    

 

 

 

    	F-5

     

    

 

 

    	F-6

     

    

 

 

    	F-7

     

    

 

 

    	F-8

     

    

 

EXHIBIT G

 

FORM
OF BORROWING BASE CERTIFICATE

 

KeyBank National Association, as Agent

127 Public Square

Cleveland, Ohio 44114

Attn: Sara Jo Smith

 

Ladies and Gentlemen:

 

Reference is made to
that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as the same may hereafter be amended, the
“Credit Agreement”), by and among Jernigan Capital Operating Company, LLC (the “Borrower”), KeyBank National
Association for itself and as Agent, and the other Lenders from time to time party thereto. Terms defined in the Credit Agreement
and not otherwise defined herein are used herein as defined in the Credit Agreement.

 

Pursuant to the Credit
Agreement, the Borrower is furnishing to you herewith the Borrowing Base Certificate. This certificate is submitted in compliance
with requirements of the Credit Agreement.

 

The undersigned is
providing the attached information to demonstrate compliance as of the date hereof with the covenants of the Credit Agreement relating
hereto.

 

IN WITNESS WHEREOF,
the undersigned have duly executed this Borrowing Base Certificate this _____ day of ___________, 201__.

 

	 	JERNIGAN CAPITAL OPERATING 

COMPANY, LLC, a Delaware limited liability company
	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member

 

	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	(SEAL)

 

    	G-1

     

    

 

 

    	G-2

     

    

 

 

    	G-3

     

    

 

 

    	G-4

     

    

 

 

    	G-5

     

    

 

EXHIBIT H

 

FORM
OF COMPLIANCE CERTIFICATE

 

KeyBank National Association, as Agent

127 Public Square

Cleveland, Ohio 44114

Attn: Sara Jo Smith

 

Ladies and Gentlemen:

 

Reference is made to
that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as the same may hereafter be amended, the
“Credit Agreement”) by and among Jernigan Capital Operating Company, LLC (the “Borrower”), KeyBank National
Association for itself and as Agent, and the other Lenders from time to time party thereto. Terms defined in the Credit Agreement
and not otherwise defined herein are used herein as defined in the Credit Agreement.

 

Pursuant to the Credit
Agreement, the Borrower (or REIT, on the Borrower’s behalf) is furnishing to you herewith (or has most recently furnished
to you) the consolidated financial statements of REIT for the fiscal period ended _______________ (the “Balance Sheet Date”).
Such financial statements have been prepared in accordance with GAAP and present fairly the consolidated financial position of
REIT at the date thereof and the results of its operations for the periods covered thereby, subject, in the case of quarterly statements,
to normal year-end adjustments and the absence of footnotes.

 

This certificate is
submitted in compliance with requirements of §2.11(d), 5.3(d), 5.4(b), 7.4(c) or 10.11 of the Credit Agreement, as applicable.
If this certificate is provided under a provision other than §7.4(c), the calculations provided below are made using the consolidated
financial statements of REIT as of the Balance Sheet Date adjusted in the best good faith estimate of REIT to give effect to the
making of a Loan, issuance of a Letter of Credit, acquisition or disposition of property or other event that occasions the preparation
of this certificate; and the nature of such event and the estimate of REIT of its effects are set forth in reasonable detail in
an attachment hereto. The undersigned officer is the chief financial officer of the Borrower (or REIT, if this certificate is delivered
by REIT on the Borrower’s behalf).

 

The undersigned representative
has caused the provisions of the Loan Documents to be reviewed and has no knowledge of any Default or Event of Default. (Note:
If the signer does have knowledge of any Default or Event of Default, the form of certificate should be revised to specify the
Default or Event of Default, the nature thereof and the actions taken, being taken or proposed to be taken by the Borrower with
respect thereto.)

 

The undersigned is
providing the attached information to demonstrate compliance as of the date hereof with the covenants described in the attachment
hereto.

 

    	H-1

     

    

 

IN WITNESS WHEREOF,
the undersigned has duly executed this Compliance Certificate this _____ day of ___________, 201__.

 

	 	JERNIGAN CAPITAL OPERATING

 COMPANY, LLC, a Delaware limited liability company
	 	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member

 

	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	(SEAL)

 

    	H-2

     

    

 

APPENDIX TO COMPLIANCE CERTIFICATE

 

    	H-3

     

    

 

 

    	H-4

     

    

 

 

    	H-5

     

    

 

EXHIBIT I

 

FORM
OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

THIS ASSIGNMENT
AND ACCEPTANCE AGREEMENT (this “Agreement”) dated ____________________, by and between ____________________________
(“Assignor”), and ____________________________ (“Assignee”).

 

WITNESSETH:

 

WHEREAS, Assignor
is a party to that certain First Amended and Restated Credit Agreement dated as of December 28, 2018, as, by and among JERNIGAN
CAPITAL OPERATING COMPANY, LLC, a Delaware limited liability company (the “Borrower”), the other lenders that are
or may become a party thereto, and KEYBANK NATIONAL ASSOCIATION, individually and as Agent (as amended from time to time,
the “Credit Agreement”); and

 

WHEREAS, Assignor
desires to transfer to Assignee [Describe assigned Commitment] under the Credit Agreement and its rights with respect to
the Commitment assigned and its Outstanding Loans with respect thereto;

 

NOW, THEREFORE,
for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable considerations, the receipt
and sufficiency of which are hereby acknowledged, Assignor and Assignee hereby agree as follows:

 

1.            Definitions.
Terms defined in the Credit Agreement and used herein without definition shall have the respective meanings assigned to such terms
in the Credit Agreement.

 

2.            Assignment.

 

(a)          Subject
to the terms and conditions of this Agreement and in consideration of the payment to be made by Assignee to Assignor pursuant to
Paragraph 5 of this Agreement, effective as of the “Assignment Date” (as defined in Paragraph 7 below), Assignor hereby
irrevocably sells, transfers and assigns to Assignee, without recourse, [all/a] portion of its Revolving Credit Note in the amount
of $_________ representing a $_________] Commitment, and a __________ percent (______%) Commitment Percentage, and a corresponding
interest in and to all of the other rights and obligations under the Credit Agreement and the other Loan Documents relating thereto
(the assigned interests being hereinafter referred to as the “Assigned Interests”), including Assignor’s share
of all Outstanding Revolving Credit Loans with respect to the Assigned Interests and the right to receive interest and principal
on and all other fees and amounts with respect to the Assigned Interests, all from and after the Assignment Date, all as if Assignee
were an original Lender under and signatory to the Credit Agreement having a Commitment Percentage equal to the amount of the respective
Assigned Interests.

 

(b)          Assignee,
subject to the terms and conditions hereof, hereby assumes all obligations of Assignor with respect to the Assigned Interests from
and after the Assignment Date as if Assignee were an original Lender under and signatory to the Credit Agreement, which obligations
shall include, but shall not be limited to, the obligation to make Revolving Credit Loans to the Borrower with respect to the Assigned
Interests and to indemnify the Agent as provided therein (such obligations, together with all other obligations set forth in the
Credit Agreement and the other Loan Documents are hereinafter collectively referred to as the “Assigned Obligations”).
Assignor shall have no further duties or obligations with respect to, and shall have no further interest in, the Assigned Obligations
or the Assigned Interests.

 

    	I-1

     

    

 

3.            Representations
and Requests of Assignor.

 

(a)          Assignor
represents and warrants to Assignee (i) that it is legally authorized to, and has full power and authority to, enter into
this Agreement and perform its obligations under this Agreement; (ii) that as of the date hereof, before giving effect to
the assignment contemplated hereby the principal face amount of Assignor’s Revolving Credit Note is $______ and the aggregate
outstanding principal balance of the Revolving Credit Loans made by it equals $________, and (iii) that it has forwarded to the
Agent the Revolving Credit Note held by Assignor. Assignor makes no representation or warranty, express or implied, and assumes
no responsibility with respect to any statements, warranties or representations made in or in connection with the Loan Documents
or the execution, legality, validity, enforceability, genuineness or sufficiency of any Loan Document or any other instrument or
document furnished pursuant thereto or in connection with the Loan, the collectability of the Loans, the continued solvency of
the Borrower or the Guarantors or the continued existence, sufficiency or value of any Collateral or any assets of the Borrower
or the Guarantors which may be realized upon for the repayment of the Loans, or the performance or observance by the Borrower or
the Guarantors of any of their obligations under the Loan Documents to which it is a party or any other instrument or document
delivered or executed pursuant thereto or in connection with the Loan; other than that it is the legal and beneficial owner of,
or has the right to assign, the interests being assigned by it hereunder and that such interests are free and clear of any adverse
claim.

 

(b)          Assignor
requests that the Agent obtain replacement notes for each of Assignor and Assignee as provided in the Credit Agreement.

 

4.            Representations
of Assignee. Assignee makes and confirms to the Agent, Assignor and the other Lenders all of the representations, warranties
and covenants of a Lender under Articles 14 and 18 of the Credit Agreement. Without limiting the foregoing, Assignee (a) represents
and warrants that it is legally authorized to, and has full power and authority to, enter into this Agreement and perform its obligations
under this Agreement; (b) confirms that it has received copies of such documents and information as it has deemed appropriate
to make its own credit analysis and decision to enter into this Agreement; (c) agrees that it has and will, independently
and without reliance upon Assignor, any other Lender, Arrangers or the Agent and based upon such documents and information as it
shall deem appropriate at the time, continue to make its own credit decisions in evaluating the Loans, the Loan Documents, the
creditworthiness of the Borrower and the Guarantors and the value of the assets of the Borrower and the Guarantors, and taking
or not taking action under the Loan Documents; (d) appoints and authorizes the Agent to take such action as agent on its behalf
and to exercise such powers as are reasonably incidental thereto pursuant to the terms of the Loan Documents; (e) agrees that,
by this Assignment, Assignee has become a party to and will perform in accordance with their terms all the obligations which by
the terms of the Loan Documents are required to be performed by it as a Lender; (f) represents and warrants that Assignee
does not control, is not controlled by, is not under common control with and is otherwise free from influence or control by, the
Borrower or any Guarantor and is not a Defaulting Lender or Affiliate of a Defaulting Lender, (g) represents and warrants
that if Assignee is not incorporated under the laws of the United States of America or any State, including the District of Columbia,
it has on or prior to the date hereof delivered to the Borrower and the Agent certification as to its exemption (or lack thereof)
from deduction or withholding of any United States federal income taxes as required by the Credit Agreement and (h) if Assignee
is an assignee of any portion of the Revolving Credit Notes, Assignee has a net worth or unfunded commitments as of the date hereof
of not less than $500,000,000.00 unless waived in writing by the Borrower and the Agent as required by the Credit Agreement. Assignee
agrees that the Borrower may rely on the representation contained in Section 4(h).

 

    	I-2

     

    

 

5.            Payments
to Assignor. In consideration of the assignment made pursuant to Paragraph 1 of this Agreement, Assignee agrees to pay to Assignor
on the Assignment Date, an amount equal to $____________ representing the aggregate principal amount outstanding of the Revolving
Credit Loans owing to Assignor under the Credit Agreement and the other Loan Documents with respect to the Assigned Interests.

 

6.            Payments
by Assignor. Assignor agrees to pay the Agent on the Assignment Date the registration fee required by §18.2 of the Credit
Agreement.

 

7.            Effectiveness.

 

(a)          The
effective date for this Agreement shall be _______________ (the “Assignment Date”). Following the execution of this
Agreement, each party hereto shall deliver its duly executed counterpart hereof to the Agent for acceptance and recording in the
Register by the Agent.

 

(b)          Upon
such acceptance and recording and from and after the Assignment Date, (i) Assignee shall be a party to the Credit Agreement
and, to the extent of the Assigned Interests, have the rights and obligations of a Lender thereunder, and (ii) Assignor shall,
with respect to the Assigned Interests, relinquish its rights and be released from its obligations under the Credit Agreement.

 

(c)          Upon
such acceptance and recording and from and after the Assignment Date, the Agent shall make all payments in respect of the rights
and interests assigned hereby accruing after the Assignment Date (including payments of principal, interest, fees and other amounts)
to Assignee.

 

(d)          All
outstanding LIBOR Rate Loans shall continue in effect for the remainder of their applicable Interest Periods and Assignee shall
accept the currently effective interest rates on its Assigned Interest of each LIBOR Rate Loan.

 

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8.          Notices.
Assignee specifies as its address for notices and its Lending Office for all assigned Loans, the offices set forth below:

 

Notice Address:                                                                                                                         

                                                                                          

                                                                                          

                                                                                          

Attn:                                                                                

Facsimile:                                                                        

 

Domestic Lending
Office:               Same as above

 

Eurodollar
Lending Office:             Same as above

 

9.          Payment
Instructions. All payments to Assignee under the Credit Agreement shall be made as provided in the Credit Agreement in accordance
with the separate instructions delivered to the Agent.

 

10.         GOVERNING
LAW. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACTUAL OBLIGATION UNDER, AND SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS
LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

11.         Counterparts.
This Agreement may be executed in any number of counterparts which shall together constitute but one and the same agreement.

 

12.         Amendments.
This Agreement may not be amended, modified or terminated except by an agreement in writing signed by Assignor and Assignee, and
consented to by the Agent.

 

13.         Successors.
This Agreement shall inure to the benefit of the parties hereto and their respective successors and assigns as permitted by the
terms of Credit Agreement.

 

[signatures on following page]

 

    	I-4

     

    

 

IN WITNESS WHEREOF,
intending to be legally bound, each of the undersigned has caused this Agreement to be executed on its behalf by its officers thereunto
duly authorized, as of the date first above written.

 

	 	ASSIGNEE:
	 	 	 
	 	By:	 
	 	 	Title:
	 	 	 
	 	ASSIGNOR:
	 	 	 
	 	By:	 
	 	 	Title:

 

RECEIPT ACKNOWLEDGED AND

ASSIGNMENT CONSENTED TO BY:

 

KEYBANK NATIONAL ASSOCIATION, as Agent

 

	By:	 	 
	 	Title:	 

 

CONSENTED TO BY:1

 

	JERNIGAN CAPITAL OPERATING 

COMPANY, LLC, a Delaware limited liability company	 

 

	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member	 
	 	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Title:	 	 
	 	 	(SEAL)	 

 

 

1 To the extent required by the
Credit Agreement

 

    	I-5

     

    

 

EXHIBIT
J

 

FORM
OF MORTGAGE

 

RECORD AND RETURN TO:

William F. Timmons, Esq.

Dentons US LLP

303 Peachtree Street, N.E., Suite 5300

Atlanta, Georgia 30308

 

DEED TO SECURE DEBT, SECURITY AGREEMENT
AND

ASSIGNMENT OF LEASES AND RENTS

__________________________________,

a ___________________

as Grantor,

TO

KEYBANK NATIONAL ASSOCIATION,

a national banking association,

as Agent

DATED: AS OF ______________, 201_

County: ___________

State: Georgia

 

    	J-1

     

    

 

THIS DEED to
secure debt, SECURITY AGREEMENT and ASSIGNMENT OF LEASES AND RENTS (this
“Instrument”) is made and entered into as of this ___ day of ________, 201_, by and between _______________,
__________________, (“Grantor”), having a mailing address of c/o Jernigan Capital Operating Company, LLC, 6410
Poplar Avenue, Suite 650, Memphis, Tennessee 38119, Attn: John A. Good, and KEYBANK NATIONAL ASSOCIATION, a national banking
association (“KeyBank”), having a mailing address of 4910 Tiedeman Road, 3rd Floor, Brooklyn, Ohio
44144, Attn: Real Estate Capital Services, with a copy to KeyBank National Association, 127 Public Square, Cleveland, Ohio 44144,
Attn: Sara Jo Smith, as Agent (KeyBank, in its capacity as Agent, is hereinafter referred to as “Agent”) for
itself and each other lender (collectively, the “Lenders”) which is or may hereafter become a party to that
certain First Amended and Restated Credit Agreement, dated as of December 28, 2018, by and among Jernigan Capital Operating Company,
LLC, a Delaware limited liability company (the “Borrower”), KeyBank, as Agent and the Lenders (as the same may be varied,
amended, restated, renewed, consolidated, extended or otherwise supplemented from time to time, the “Credit Agreement”).
Capitalized terms used herein that are not otherwise defined herein shall have the meanings set forth in the Credit Agreement.
Grantor is a Guarantor and will benefit from the Credit Agreement, as more fully set forth in the Guaranty (as hereinafter defined)
executed by Grantor, and is granting this Instrument in consideration for such benefit. Capitalized terms used herein that are
not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

 

WITNESSETH:

 

FOR AND IN CONSIDERATION
of the sum of Ten and No/100 Dollars ($10.00) and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in order to secure the Secured Debt (as hereinafter defined), Grantor does hereby grant, bargain, sell, convey,
assign, transfer and set over unto Agent, and its successors and assigns, for the ratable benefit of the Lenders and the holders
of the Hedge Obligations, and their successors and assigns, all of Grantor’s right, title and interest in and to the following
described land and interests in land, estates, easements, rights, improvements, property, fixtures, equipment, furniture, furnishings,
appliances, general intangibles, and appurtenances, whether now or hereafter existing or acquired (collectively, the “Property”):

 

(a)          All
those tracts or parcels of land and easements more particularly described on Exhibit “A” attached hereto and
by this reference made a part hereof (the “Land”).

 

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(b)          All
present and future buildings, structures, parking areas, annexations and improvements of every nature whatsoever now or hereafter
situated on the Land (hereinafter referred to as the “Improvements”) and all materials intended for construction,
reconstruction, alteration and repairs of the Improvements now or hereafter erected, all of which materials shall be deemed to
be included within the Improvements immediately upon the delivery thereof to the Land, and all gas and electric fixtures, radiators,
heaters, engines and machinery, boilers, ranges, elevators and motors, water tanks, water supply, water power sites, fuel stations,
fuel supply, generators, uninterrupted power supplies, plumbing and heating fixtures, incinerating, sprinkling, and waste removal
systems, carpeting and other floor coverings, fire extinguishers and any other safety equipment required by governmental regulation
or law, washers, dryers, water heaters, mirrors, mantels, air conditioning and cooling apparatus and equipment systems, refrigerating
plants, refrigerators, cooking apparatus and appurtenances, storm windows and doors, window and door screens, awnings and storm
sashes, which are or shall be owned by Grantor and attached to said Improvements and all other furnishings, furniture, china, glassware,
tableware, uniforms, linen, drapes and curtains and related hardware and mounting devices, wall to wall carpeting, radios, lamps,
telephone systems, televisions and television systems, computer systems, guest ledgers, vehicles, fixtures, machinery, equipment,
apparatus, appliances, books and records, chattels, inventory, accounts, farm products, consumer goods, contract rights, general
intangibles and personal property of every kind and nature whatsoever now or hereafter owned by Grantor and located in, on or about,
or used or intended to be used with or in connection with the use, operation or enjoyment of the Property, including all extensions,
additions, improvements, betterments, after-acquired property, renewals, replacements and substitutions, or proceeds from a permitted
sale of any of the foregoing, together with the benefit of any deposits or payments now or hereafter made by Grantor or on behalf
of Grantor, all of which are hereby declared and shall be deemed to be fixtures and accessions to the Land and a part of the Property
as between the parties hereto and all persons claiming by, through or under them, and which shall be deemed to be a portion of
the security for the indebtedness herein described and to be secured by this Instrument.

 

(c)          All
easements, access rights, rights-of-way, strips and gores of land, vaults, streets, ways, alleys, passages, sewer rights, waters,
water courses, water rights and powers, irrigation systems (including, without limitation, underground wiring, pipes, pumps and
sprinkler heads), minerals, flowers, plants, shrubs, crops, trees, timber, fences, signs, bridges, fountains, monuments and other
emblements now or hereafter located on the Land or under or above the same or any part or parcel thereof, and all estates, rights,
titles, interests, privileges, liberties, servitudes, licenses, tenements, hereditaments and appurtenances, reversion and reversions,
remainder and remainders, whatsoever, in any way belonging, relating or appertaining to the Land or any part thereof, or which
hereafter shall in any way belong, relate or be appurtenant thereto, whether now owned or hereafter acquired by Grantor.

 

(d)          All
leases and all subleases, tenancies, shared space agreements, master space agreements, occupancies, licenses, rental or other agreements
of similar nature, whether oral or written (collectively, the “Leases”), and all income, rents, issues, profits,
room rentals, transient or guest payments, fees, charges or other payments for the use or occupancy of rooms or other facilities,
and revenues of the Property from time to time accruing (including, without limitation, all payments under Leases), all guarantees
of the foregoing or letters of credit relating to the foregoing, lease or other termination payments, proceeds of insurance, condemnation
payments, tenant security, damage or other deposits whether held by Grantor or in a trust account, escrow funds, fees, charges,
rents, license fees, concession fees, fees arising from contractual services, revenues and fees from the provision of recurring
services, overage fees, media fees, consulting fees, accounts, accounts receivable, royalties, security, damage or other deposits
from time to time accruing, all payments under working interests, production payments, royalties, overriding royalties, operating
interests, participating interest and other such entitlements, and all the estate, right, title, interest, property, possession,
claim and demand whatsoever at law, as well as in equity, of Grantor of, in and to the same (collectively, the “Revenues”);
reserving only the right to Grantor to collect the same (other than lease termination payments and insurance proceeds and condemnation
payments except to the extent permitted in the Credit Agreement) so long as no Event of Default has occurred and is continuing
(provided, that if an Event of Default is waived by Agent or cured by Grantor and accepted by Agent, Grantor’s right to collect
same shall automatically be reinstated).

 

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(e)          All
insurance policies, building service, building maintenance, construction, development, management, indemnity, and other similar
agreements and contracts and subcontracts, written or oral, express or implied, now or hereafter entered into, arising or in any
manner related to the purchase, construction, design, improvement, use, operation, ownership, occupation, enjoyment, sale, conversion
or other disposition (voluntary or involuntary) of the Property, or the buildings and improvements now or hereafter located thereon,
or any other interest in the Property, or any combination thereof, franchises, franchise agreements, property management agreements,
cable television agreements, contracts for the purchase of supplies, telephone service agreements, yellow pages or other advertising
agreements, sales contracts, construction contracts, architects agreements, general contract agreements, design agreements, engineering
agreements, technical service agreements, sewer and water and other utility agreements, service contracts, agreements relating
to the collection of receivables or use of customer lists, all bookings and reservations for space or facilities within the Property,
all purchase options, option agreements, rights of first refusal, contract deposits, earnest money deposits, prepaid items and
payments due and to become due thereunder, and further including all payment and performance bonds, labor, deposits, assurances,
construction guaranties, guaranties, warranties, indemnities and other undertakings, architectural plans and specifications, drawings,
surveys, soil reports, engineering reports, inspection reports, environmental audits and other technical descriptions and reports
relating to the Property, renderings and models, permits, consents, approvals, licenses, variances, agreements, contracts, building
and other permits and licenses, purchase orders and equipment leases, personal property leases, and all causes of action relating
thereto.

 

(f)          All
operating accounts maintained with Agent or any of the Lenders, all deposit accounts, instruments, accounts receivable, documents,
causes of action, claims, names by which the Property or the improvements thereon may be operated or known, all rights to carry
on business under such names, all telephone numbers or listings, all rights, interest and privileges of which Grantor may have
in any capacity under any covenants, restrictions or declarations now or hereafter relating to the Property or the Improvements,
and all notes or chattel paper now or hereafter arising from or by virtue of any transactions relating to the Property or the Improvements
located thereon and all customer lists, other lists, and business information relating in any way to the Property or the Improvements
or the use thereof, whether now owned or hereafter acquired.

 

(g)          All
assets, personal property and interests related to the ownership and operation of the Property or the Improvements now or hereafter
erected therein, whether now or hereafter acquired, of the Grantor, including, without limitation, accounts (including, without
limitation, health-care-insurance receivables, if any), chattel paper (whether tangible or electronic), deposit accounts, documents,
general intangibles (including, without limitation, payment intangibles, and all current and after acquired copyrights, copyright
rights, advertising materials, web sites, and web pages, software and software licenses, trademarks and service marks, trademark
rights, trademark applications, service mark rights, service mark applications, trade dress rights, company names, logos, and all
domain names, owned or used in connection with the Grantor’s business, and in each case all goodwill associated therewith),
goods (including, without limitation, inventory, property, possessions, equipment, fixtures and accessions), instruments (including,
without limitation, promissory notes), investment property, letter-of-credit rights, letters of credit, money, supporting obligations,
as-extracted collateral, timber to be cut and all proceeds and products of anything described or referred to above in this Subsection (g),
in each case as such terms are defined under the Uniform Commercial Code as in effect in the applicable jurisdiction.

 

    	J-4

     

    

 

(h)          All
cash funds, deposit accounts and other rights and evidence of rights to cash, now or hereafter created or held by Agent pursuant
to this Instrument, the Credit Agreement or any other of the Loan Documents.

 

(i)          All
proceeds, products, substitutions and accessions of the foregoing of every type.

 

TO HAVE AND TO HOLD, the Property and all
parts, rights, members and appurtenances thereof, to the use, benefit and behoof of Agent for the ratable benefit of the Lenders
and the holders of the Hedge Obligations and their respective successors and assigns, IN FEE SIMPLE forever; and Grantor covenants
that Grantor is lawfully seized and possessed of the Property as aforesaid, and has good right to convey the same, that the same
is unencumbered except for those matters expressly set forth in Exhibit “B” attached hereto and by this reference
made a part hereof (the “Permitted Encumbrances”), and that Grantor does warrant and will forever defend the
title thereto against the claims of all persons whomsoever, except as to those matters set forth in said Exhibit “B”
attached hereto.

 

This conveyance is intended to operate
and is to be construed as a deed passing the title to the Property to Agent and is made under those provisions of the existing
laws of the State of Georgia relating to deeds to secure debt, and not as a mortgage, and is given to secure the following described
obligations (collectively, the “Secured Debt”):

 

(a)          The
debt evidenced by (i) those certain Revolving Credit Notes made by the Borrower in the aggregate principal face amount of
_____________________ and No/100 Dollars ($_____________________) to the order of the Lenders, each of which has been issued pursuant
to the Credit Agreement and each of which is due and payable in full on or before December 28, 2021, as such date may be extended
to December 28, 2023, and which evidence a revolving credit loan in the initial principal amount of up to $_____________________,
and which may be increased up to Four Hundred Million and No/100 Dollars ($400,000,000.00) pursuant to Section 2.11 of the Credit
Agreement, (ii) that certain Swing Loan Note made by Borrower in the principal amount of _____________________and No/100 Dollars
($_____________________) to the order of KeyBank, which is due and payable in full on or before December 28, 2021, as such date
may be extended to December 28, 2023, and (iii) each other note as may be issued under the Credit Agreement, including, without
limitation, to reflect any increase of the revolving credit loan described herein, and which is due and payable on or before December
28, 2021, as such date may be extended to December 28, 2023, each as originally executed, or if varied, extended, supplemented,
consolidated, amended, replaced, renewed, modified or restated from time to time as so varied, extended, supplemented, consolidated,
amended, replaced, renewed, modified or restated (collectively, the “Note”);

 

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(b)          The
payment, performance and discharge of each and every obligation, covenant and agreement of Grantor contained herein, or of Grantor
contained in that certain First Amended and Restated Unconditional Guaranty of Payment and Performance by Grantor and others in
favor of KeyBank, as Agent for itself and each other Lender, dated as of December 28, 2018 (as amended, restated, modified, renewed,
supplemented or extended from time to time, the “Guaranty”), of Borrower contained in the Credit Agreement, and of
Grantor and Borrower in the other Loan Documents, including, without limitation, the obligation of Borrower to reimburse Issuing
Lender for any draws under the Letters of Credit;

 

(c)          Any
and all additional advances made by Agent or any Lender to protect or preserve the Property or the lien and security title hereof
in and to the Property, or for taxes, assessments or insurance premiums as hereinafter provided (whether or not Grantor is the
owner of the Property at the time of such advances);

 

(d)          The
payment, performance and discharge of each and all of the Hedge Obligations;

 

(e)          Any
and all other indebtedness now or hereafter owing by Borrower to Agent or any Lender pursuant to the terms of the Credit Agreement,
whether now existing or hereafter arising or incurred, however evidenced or incurred, whether express or implied, direct or indirect,
absolute or contingent, due or to become due, including, without limitation, all principal, interest, fees, expenses, yield maintenance
amounts and indemnification amounts, and all renewals, modifications, consolidations, replacements and extensions thereof; and

 

(f)          All
reasonable out of pocket costs and expenses incurred by the Agent, the Lenders and the holders of the Hedge Obligations in connection
with the enforcement and collection of the Secured Debt, including, without limitation, all reasonable out of pocket attorneys’
fees and disbursements, and all other such costs and expenses described in and incurred pursuant to the Note, the Credit Agreement,
the Guaranty, this Instrument, the other Loan Documents and the agreements evidencing or relating to the Hedge Obligations (the
“Hedge Documents”) (collectively, the “Enforcement Costs”).

 

Wherever used herein or in the other Loan
Documents, the terms “attorney’s fees” or “legal fees” shall mean reasonable attorneys’ fees
in the amount actually incurred at the attorneys’ normal hourly rates, rather than a percentage of principal and interest
as provided for in O.C.G.A. § 13-1-11(a)(2).

 

Notwithstanding anything to the contrary
contained herein, under no circumstances shall the “Secured Debt” as defined herein include any obligation that constitutes
an Excluded Hedge Obligation of Grantor.

 

Subject to Section 2.21 hereof, should
the Secured Debt secured by this Instrument be paid and performed according to the terms and effect thereof when the same shall
become due and payable, and should Grantor perform all covenants contained herein in a timely manner and the obligation of the
Lenders to make Loans and issue Letters of Credit under the Credit Agreement has terminated, then this Instrument shall be released.

 

Grantor hereby further covenants and agrees
with Agent as follows:

 

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ARTICLE
1

 

1.01       Payment
of Secured Debt. Grantor will pay and perform or cause to be paid and performed the Secured Debt according to the tenor thereof
and all other sums now or hereafter secured hereby as the same shall become due.

 

1.02       Funds
for Impositions. After the occurrence and during the continuance of an Event of Default, Grantor shall pay to Agent, subject
to Agent’s option under Section 1.03 hereof, on the days that monthly installments of interest are payable under the
Note, until the Note is paid in full, a sum (hereinafter referred to as the “Funds”) reasonably estimated by
Agent to provide an amount necessary for payment of the following items in full thirty (30) days prior to when such items become
due (hereinafter collectively referred to as the “Impositions”): (a) the yearly real estate taxes, ad valorem
taxes, personal property taxes, assessments and betterments, and (b) the yearly premium installments for the insurance covering
the Property and required by the Credit Agreement. The Impositions shall be reasonably estimated initially and from time to time
by Agent on the basis of assessments and bills and estimates thereof. The Funds shall be held by Agent in a separate non-interest
bearing account free of any liens or claims on the part of other creditors of Grantor and as part of the security for the Secured
Debt. Grantor shall pay all Impositions prior to delinquency as required by Section 1.03 hereof. In the event Agent elects
to reserve Funds as permitted under this Section 1.02, Agent shall apply the Funds to pay the Impositions with respect to which
the Funds were paid to the extent of the Funds then held by Agent and provided Grantor has delivered to Agent the assessments or
bills therefor. Grantor shall be permitted to pay any Imposition early in order to take advantage of any available discounts. Agent
shall make no charge for so holding and applying the Funds or for verifying and compiling said assessments and bills. The Funds
are pledged as additional security for the Secured Debt, and may be applied, at Agent’s option and without prior notice to
Grantor, to the payment of the Secured Debt upon the occurrence and during the continuance of any Event of Default. If at any time
the amount of the Funds held by Agent, or to be held considering the deposits to be made under this Section 1.02, shall be less
than the amount reasonably deemed necessary by Agent to pay Impositions as such become due, Grantor shall pay to Agent any amount
necessary to make up the deficiency within fifteen (15) business days after notice from Agent to Grantor requesting payment thereof.
Upon the payment and performance in full of the Secured Debt and termination of the obligation of the Lenders to make Loans and
of Issuing Lender to issue Letters of Credit, Agent shall promptly refund to Grantor any Funds then held by Agent.

 

1.03       Impositions,
Liens and Charges. Grantor shall pay all Impositions and other charges, if any, attributable to the Property prior to delinquency,
and at Agent’s option during the continuance of an Event of Default, Grantor shall pay in the manner hereafter provided under
this Section 1.03. Grantor shall, during continuance of an Event of Default, furnish to Agent all bills and notices of amounts
due under this Section 1.03 as soon as received, and in the event Grantor shall make payment directly, Grantor shall, as and
when available, furnish to Agent receipts evidencing such payments prior to the dates on which such payments are delinquent, subject
to Grantor’s right to contest taxes, assessments and other governmental charges as provided in the Credit Agreement. Grantor
shall promptly discharge (by bonding, payment or otherwise) any lien filed against the Property or Grantor (including federal tax
liens) and will keep and maintain the Property free from the claims of all persons supplying labor or materials to the Property,
subject to Grantor’s right to contest the same as provided in the Credit Agreement. Grantor shall not claim or be entitled
to any credit against the taxable value of the Property by reason of this Instrument, or any deduction in or credit on the Secured
Debt by reason of Impositions paid.

 

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1.04       Taxes,
Liens and Other Charges.

 

(a)          In
the event of the passage of any state, federal, municipal or other governmental law, order, rule or regulation, subsequent to the
date hereof, in any manner changing or modifying the laws now in force governing the taxation of debts secured by mortgages, deeds
to secure debt or other security instruments or the manner of collecting taxes so as to adversely affect Agent or the Lenders,
Grantor will promptly pay any such tax prior to delinquency. If Grantor fails to make such payment promptly, or if, in the opinion
of Agent, any such state, federal, municipal, or other governmental law, order, rule or regulation prohibits Grantor from making
such payment or would penalize Agent or the Lenders if Grantor makes such payment or if, in the opinion of Agent, the making of
such payment could reasonably result in the imposition of interest beyond the maximum amount permitted by applicable law, then
the entire balance of the principal sums secured by this Instrument and all interest accrued thereon shall, at the option of Agent,
become immediately due and payable on the date which is the earlier of (x) the date that is ninety (90) days following the date
of receipt by Grantor of written notice of Agent's election to accelerate payment of the Secured Debt pursuant to this Section
1.04(a) and (y) the date the applicable tax is due and payable.

 

(b)          Grantor
will pay or cause to be paid all taxes, liens, assessments and charges of every character including all utility charges, whether
public or private, already levied or assessed or that may hereafter be levied or assessed upon or against the Property as required
under the Credit Agreement.

 

1.05       Insurance.

 

Grantor shall procure for, deliver to and
maintain for the benefit of Agent and Lenders the insurance policies described in the Credit Agreement. Grantor shall pay or cause
to be paid all premiums on such insurance policies. All proceeds of any property or casualty insurance or awards of damages on
account of any taking or condemnation for public use of or injury to the Property are hereby assigned to Agent, for the benefit
of the Lenders, and shall be paid, adjusted, and used pursuant to the terms of the Credit Agreement. In the event of a foreclosure
sale of all or any part of the Property pursuant to the enforcement of this Instrument, the purchaser of such Property shall succeed
to all rights of Grantor, including any rights to the proceeds of insurance and to unearned premiums, in and to all of the policies
of insurance. In the event of a foreclosure sale, Agent is hereby authorized, without the further consent of Grantor, to take such
steps as Agent may deem advisable to cause the interest of such purchaser to be protected by any of such policies. In case of Grantor’s
failure to keep the Property properly insured as required herein, Agent, after notice to Grantor, at its option may (but shall
not be required to) acquire such insurance as required herein and in the Credit Agreement at Borrower’s and Grantor’s
sole expense.

 

    	J-8

     

    

 

1.06       Condemnation.
If all or any portion of the Property shall be damaged or taken through condemnation (which term when used in this Instrument shall
include any damage or taking by any governmental authority or any transfer by private sale in lieu thereof), either temporarily
or permanently, then all compensation, awards and other payments or relief thereof, shall be paid and applied in accordance with
terms and provisions of the Credit Agreement.

 

1.07       Care,
Use and Management of Property.

 

(a)          Grantor
will keep, or cause to be kept, the roads and walkways, landscaping and all other Improvements of any kind now or hereafter erected
on the Land or any part thereof in good condition and repair (ordinary wear and tear excepted), will not commit or suffer any intentional
physical waste, impairment or deterioration (ordinary wear and tear excepted) and will not do or suffer to be done anything which
will materially increase the risk of fire or other hazard to the Property or any part thereof.

 

(b)          Grantor
will not remove or demolish nor alter the structural character of any building located on the Land or any fixtures or personal
property relating thereto except when incidental to the replacement of fixtures and personal property with items of like kind and
value, customary tenant improvements pursuant to Leases approved or deemed approved pursuant to the Credit Agreement or other repairs,
replacements, improvements and alterations expressly permitted pursuant to the Credit Agreement. Without Agent’s prior written
consent, Grantor shall not construct any new buildings or structures on the Land.

 

(c)          If
the Property or any part thereof is materially damaged by fire or any other cause, Grantor will give immediate written notice thereof
to Agent.

 

(d)          Grantor
will promptly comply in all material respects with all present and future laws, ordinances, rules and regulations of any governmental
authority, all restrictive covenants and other agreements affecting the Property or relating to the operation thereof affecting
the Property or any part thereof and all licenses or permits affecting the Property or any part thereof, subject to Grantor’s
right to contest the same as provided in the Credit Agreement.

 

(e)          Grantor
shall keep or cause to be kept the Property, including the Improvements and the Personal Property (as hereinafter defined), in
such good order, repair (ordinary wear and tear excepted) and tenantable condition and shall replace fixtures, equipment, machinery
and appliances on the Property when necessary to keep such items in good order, repair, and tenantable condition (ordinary wear
and tear excepted).

 

(f)          Grantor
shall keep all franchises, trademarks, trade names, service marks and licenses and permits necessary for the Grantor’s use
and occupancy of the Property in good standing and in full force and effect.

 

(g)          Unless
required by applicable law or unless Agent has otherwise agreed in writing (such agreement not to be unreasonably withheld, conditioned
or delayed), Grantor shall not allow changes in the nature of the occupancy or use for which the Property was intended at the time
this Instrument was executed. Grantor shall not abandon the Property. Grantor shall not initiate, fail to contest or acquiesce
in a change in the zoning classification of the Property or subject the Property to easements or restrictive or negative covenants
without Agent’s written consent. Grantor shall (or shall cause the tenant of the Property to) comply with, observe and perform
all zoning and other laws affecting the Property, all agreements and restrictive covenants affecting the Property, and all licenses
and permits affecting the Property, subject to Grantor’s right to contest compliance with laws to the extent permitted in
the Credit Agreement. Grantor shall not, without Agent’s prior written consent, grant any dedication or file any plat, condominium
declaration or restriction.

 

    	J-9

     

    

 

(h)          Agent
may, at Grantor’s expense, make or cause to be made reasonable entries upon and inspections of the Property as permitted
in the Credit Agreement, or at any other time when necessary or appropriate, in the reasonable discretion of Agent, to protect
or preserve the Property provided that, except during the continuance of an Event of Default or in an emergency circumstance, Agent
reasonably notifies Grantor in writing in advance thereof.

 

(i)          If
all or any part of the Property shall be damaged by fire or other casualty or loss, then Grantor will promptly restore the Property
to the condition required by the Credit Agreement if restoration is required pursuant to the Credit Agreement; and if a part of
the Property shall be damaged through condemnation, Grantor will promptly restore, repair or alter the remaining portions of the
Property to the condition required by the Credit Agreement if restoration is required pursuant to the Credit Agreement, in a manner
reasonably satisfactory to Agent. Notwithstanding the foregoing, Grantor shall not be obligated to so restore unless, in each instance,
Agent agrees to make available to Grantor (subject to the terms of the Credit Agreement) any net insurance or condemnation proceeds
actually received by Agent hereunder in connection with such casualty loss or condemnation, to the extent such proceeds are required
to defray the expense of such restoration; provided, however, that, subject to the provisions of the Credit Agreement, the insufficiency
of any such insurance or condemnation proceeds to defray the entire expense of restoration shall in no way relieve Grantor of its
obligation to restore, if Grantor has such obligation pursuant to the Credit Agreement.

 

(j)          Grantor
shall pay all normal and customary operating expenses for the Property as the same become due.

 

1.08       Leases
and other Agreements Affecting Property.

 

(a)          As
additional security for the Secured Debt, Grantor presently and unconditionally assigns and transfers to Agent all of Grantor’s
right, title and interest in and to the Leases and the Revenues, including those now due, past due or to become due by virtue of
any of the Leases for the occupancy or use of all or any part of the Property. Grantor hereby authorizes Agent or Agent’s
agents to collect the Revenues and hereby directs such tenants, lessees and licensees of the Property to pay the Revenues to Agent
or Agent’s agents; provided, however, Grantor shall have a license (revocable upon the occurrence and during the continuance
of an Event of Default) to collect, receive, and use the Revenues (in accordance with the terms of the Leases) as trustee for the
benefit of Agent, and apply the Revenues so collected to the Secured Debt, to the extent then due and payable, then to the payment
of normal and customary operating expenses, real estate taxes and insurance for the Property which are then due and payable, with
the balance, so long as no Event of Default has occurred and is continuing, to the account of Grantor (provided, that if an Event
of Default is waived by Agent or cured by Grantor and accepted by Agent, Grantor’s right to collect same shall automatically
be reinstated). Grantor agrees that each and every tenant, lessee and licensee of the Property may pay, and hereby irrevocably
authorizes and directs each and every tenant, lessee and licensee of the Property to pay, the Revenues to Agent or Agent’s
agents on Agent’s written demand therefor (which demand may be made by Agent at any time after the occurrence and during
the continuance of an Event of Default) without any obligation on the part of said tenant, lessee or licensee to inquire as to
the existence of an Event of Default and notwithstanding any notice or claim of Grantor to the contrary, and Grantor agrees that
Grantor shall have no right or claim against said tenant, lessee or licensee for or by reason of any Revenues paid to Agent following
receipt of such written demand.

 

    	J-10

     

    

 

(b)          Grantor
hereby covenants that Grantor has not executed any prior assignment of the Leases or the Revenues which have not been released
or assigned to Agent as of the date hereof, that Grantor has not performed, and will not perform, any acts and has not executed,
and will not execute, any instruments which would prevent Agent from exercising the rights of the beneficiary of this Instrument,
and that at the time of execution of this Instrument, there has been no anticipation or prepayment of any of the Revenues for more
than one (1) month prior to the due dates of such Revenues. Grantor further covenants that Grantor will not hereafter collect or
accept payment of any Revenues more than one (1) month prior to the due dates of such Revenues.

 

(c)          Grantor
agrees that neither the foregoing assignment of Leases and Revenues nor the exercise of any of Agent’s rights and remedies
under this Section or Article 2 hereof shall be deemed to make Agent a mortgagee-in-possession or otherwise responsible or liable
in any manner with respect to the Leases, the Property or the use, occupancy, enjoyment or operation of all or any portion thereof,
unless and until Agent, in person or by agent, assumes actual possession thereof or acquires title to the Property through foreclosure
or deed-in-lieu of foreclosure. Grantor further agrees that the appointment of any receiver for the Property by any court at the
request of Agent or by agreement with Grantor, or the entering into possession of any part of the Property by such receiver, shall
not be deemed to make Agent a mortgagee-in-possession or otherwise responsible or liable in any manner with respect to the Leases,
the Property or the use, occupancy, enjoyment or operation of all or any portion thereof.

 

(d)          If
an Event of Default has occurred and is continuing and Agent exercises its rights and remedies pursuant to this Section or Article
2 hereof or pursuant to the other Loan Documents, all Revenues thereafter collected shall be applied in such order as Agent may
elect in its discretion to the reasonable costs of taking control of and managing the Property and collecting the Revenues, including,
but not limited to, reasonable attorneys’ fees actually incurred, fees, receiver fees, premiums on receiver’s bonds,
costs of repairs to the Property, premiums on insurance policies, Impositions and other charges on the Property, and the costs
of discharging any obligation or liability of Grantor as landlord, lessor or licensor of the Property, or to the Secured Debt.
Agent or any receiver shall have access to the books and records used in the operation and maintenance of the Property and shall
be liable to account only for those Revenues actually received. Agent shall not be liable to Grantor, anyone claiming under or
through Grantor or anyone having an interest in the Property by reason of anything done or left undone by Agent pursuant to this
Section or Article 2 hereof, except in the event of Agent’s gross negligence or willful misconduct. If the Revenues are not
sufficient to meet the costs of taking control of and managing the Property and collecting the Revenues, any monies reasonably
expended by Agent for such purposes shall become a portion of the Secured Debt. Unless Agent and Grantor agree in writing to other
terms of payment, such amounts shall be payable upon written notice from Agent to Grantor requesting payment thereof and shall
bear interest from the date of disbursement at the rate for default interest stated in Section 4.11 of the Credit Agreement (the
“Default Rate”) unless payment of interest at such rate would be contrary to applicable law, in which event
such amounts shall bear interest at the highest rate which may be collected from Grantor under applicable law. The entering upon
and taking possession of and maintaining of control of the Property by Agent or any receiver and the application of Revenues as
provided herein shall not cure or waive any Event of Default or invalidate any other right or remedy of Agent hereunder.

 

    	J-11

     

    

 

(e)          It
is the intention of Agent and Grantor that the assignment effectuated by this Instrument with respect to the Revenues shall be
a direct and currently effective assignment, and shall not constitute merely an obligation to grant a lien, security interest or
pledge for the purpose of securing the Secured Debt.

 

(f)          In
the event that a court of competent jurisdiction determines that, notwithstanding such expressed intent of the parties, Agent’s
interest in the Revenues constitutes a lien on or security interest in or pledge of the Revenues, it is agreed and understood that
the forwarding of a notice to Grantor after the occurrence of an Event of Default advising Grantor of the revocation of Grantor’s
license to collect such Revenues, shall be sufficient action by Agent to (i) perfect such lien on or security interest in or pledge
of the Revenues, (ii) take possession thereof and (iii) entitle Agent to immediate and direct payment of the Revenues, for
application as provided in this Instrument, all without the necessity of any further action by Agent, including, without limitation,
any action to obtain possession of the Land, Improvements or any other portion of the Property.

 

1.09       Leases
of the Property.

 

(a)          Except
as permitted in the Credit Agreement, Grantor shall not enter into any Lease of all or any portion of the Property or amend, supplement
or otherwise modify, or terminate or cancel, or accept the surrender of, or consent to the assignment or subletting of, or grant
any concessions to or waive the performance of any obligations of any tenant, lessee or licensee under, any now existing or future
Lease of the Property, without the prior written consent of Agent. Grantor, at Agent’s request, shall furnish Agent with
executed copies of all Leases hereafter made of all or any part of the Property. Upon Agent’s written request, Grantor shall
make a separate and distinct assignment to Agent, as additional security, of all Leases hereafter made of all or any part of the
Property.

 

(b)          There
shall be no merger of the leasehold estates created by the Leases with the fee estate of the Property without the prior written
consent of Agent. Agent may at any time and from time to time by specific written instrument intended for the purpose, unilaterally
subordinate the lien of this Instrument to any Lease, without joinder or consent of, or notice to, Grantor, any tenant or any other
Person, and notice is hereby given to each tenant under a Lease of such right to subordinate. No such subordination shall constitute
a subordination to any lien or other encumbrance, whenever arising, or improve the right of any junior lienholder. Nothing herein
shall be construed as subordinating this Instrument to any Lease.

 

    	J-12

     

    

 

(c)          Grantor
hereby appoints Agent its attorney-in-fact, coupled with an interest, empowering Agent to subordinate this Instrument to any Leases.

 

1.10       Security
Agreement.

 

(a)          Insofar
as the machinery, apparatus, equipment, fittings, fixtures, building supplies and materials, general intangibles and articles of
personal property either referred to or described in this Instrument, or in any way connected with the use and enjoyment of the
Property is concerned, Grantor grants unto Agent a security interest therein and this Instrument is hereby made and declared to
be a security agreement, encumbering each and every item of personal property (the “Personal Property”) included
herein in compliance with the provisions of the Uniform Commercial Code as enacted in the applicable jurisdiction as set forth
in Section 3.04 below (the “UCC”). Any notification required by the UCC shall be deemed reasonably and
properly given if sent in accordance with the notice provisions of this Instrument at least ten (10) days before any sale or other
disposition of the Personal Property. Disposition of the Personal Property shall be deemed commercially reasonable if made pursuant
to a public sale advertised at least twice in a newspaper of general circulation in the community where the Property is located,
or if advertised as part of a foreclosure of the Property. It shall be deemed commercially reasonable for the Agent to dispose
of the Personal Property without giving any warranties as to the Personal Property and specifically disclaiming all disposition
warranties. A financing statement or statements, affecting all of said personal property aforementioned, shall be appropriately
filed. The remedies for any violation of the covenants, terms and conditions of the security agreement herein contained shall be
(i) as prescribed herein with respect to the Property, or (ii) as prescribed by general law, or (iii) as prescribed
by the specific statutory consequences now or hereafter enacted and specified in said UCC, all at Agent’s sole election.
Grantor and Agent agree that the filing of such financing statement(s) in the records normally having to do with personal property
shall never be construed as in any way derogating from or impairing this declaration and hereby stated intention of Grantor and
Agent that everything used in connection with the production of income from the Property and/or adapted for use therein and/or
which is described or reflected in this Instrument is to the full extent provided by law, and at all times and for all purposes
and in all proceedings both legal or equitable shall be, regarded as part of the real estate irrespective of whether (i) any
such item is physically attached to the Improvements, (ii) serial numbers are used for the better identification of certain
items capable of being thus identified in a recital contained herein, or (iii) any such item is referred to or reflected in
any such financing statement(s) so filed at any time. Similarly, the mention in any such financing statement(s) of the rights in
and to (1) the proceeds of any fire and/or hazard insurance policy, or (2) any award in eminent domain proceedings for
a taking or for loss of value, or (3) Grantor’s interest as lessor in any present or future lease or rights to income
growing out of the use and/or occupancy of the Property, whether pursuant to lease or otherwise, shall never be construed as in
any way altering any of the rights of Agent as determined by this Instrument or impugning the priority of Agent’s lien granted
hereby or by any other recorded document, but such mention in such financing statement(s) is declared to be for the protection
of Agent in the event any court shall at any time hold with respect to the foregoing (1), (2) or (3), that notice of Agent’s
priority of interest to be effective against a particular class of persons, must be filed in the UCC records.

 

    	J-13

     

    

 

(b)          Grantor
warrants that (i) Grantor’s (that is, “Debtor’s”) correct legal name (including, without limitation,
punctuation and spacing) indicated on the public record of Grantor’s jurisdiction of organization, identity or corporate
structure, residence or chief executive office and jurisdiction of organization are as set forth in Subsection 1.10(d) hereof;
(ii) Grantor has been using or operating under said name, identity or corporate structure without change for the time period
set forth in Subsection 1.10(d) hereof, and (iii) the location of the Personal Property secured by this Instrument is
upon the Land. Grantor covenants and agrees that Grantor shall not change any of the matters addressed by clauses (i) or (iii)
of this Subsection 1.10(b) unless it has given Agent thirty (30) days prior written notice of any such change and has executed
or authorized at the request of Agent, such additional financing statements or other instruments to be filed in such jurisdictions
as Agent may deem necessary or advisable in its sole discretion to prevent any filed financing statement from becoming misleading
or losing its perfected status.

 

(c)          [Intentionally
Omitted.]

 

(d)          The
information contained in this Subsection 1.10(d) is provided in order that this Instrument shall comply with the requirements of
the Uniform Commercial Code, as enacted in the State of Georgia, for instruments to be filed as financing statements. The names
of the “Debtor” and the “Secured Party”, the identity or corporate structure, jurisdiction of organization,
organizational number, federal tax identification number, and residence or chief executive office of “Debtor”, and
the time period for which “Debtor” has been using or operating under said name and identity or corporate structure
without change, are as set forth in Schedule 1 of Exhibit “C” attached hereto and by this reference made a part
hereof; the mailing address of the “Secured Party” from which information concerning the security interest may be obtained,
and the mailing address of “Debtor”, are as set forth in Schedule 2 of Exhibit “C” attached hereto;
and a statement indicating the types, or describing the items, of Personal Property secured by this Instrument is set forth hereinabove.

 

(e)          Exhibit
“C” correctly sets forth all names and tradenames that Grantor has used within the last five years, and also correctly
sets forth the locations of all of the chief executive offices of Grantor over the last five years.

 

(f)          The
Grantor hereby covenants and agrees that:

 

(1)         Grantor
shall not merge or consolidate into, or transfer any of the Property to, any other person or entity except as permitted under the
Credit Agreement.

 

(2)         Grantor
shall, at any time and from time to time, take such steps as Agent may reasonably request for Agent (A) to obtain an acknowledgment,
in form and substance reasonably satisfactory to Agent, of any bailee having possession of any of the Property, stating that the
bailee holds possession of such Property on behalf of Agent, (B) to obtain “control” of any investment property,
deposit accounts, letter-of-credit rights, or electronic chattel paper (as such terms are defined by the UCC with corresponding
provisions thereof defining what constitutes “control” for such items of collateral), with any agreements establishing
control to be in form and substance reasonably satisfactory to Agent, and (C) otherwise to insure the continued perfection
and priority of the Agent’s security interest in any of the Property and of the preservation of its rights therein. If Grantor
shall at any time, acquire a “commercial tort claim” (as such term is defined in the UCC) with respect to the Property
or any portion thereof, Grantor shall promptly notify Agent thereof in writing, providing a reasonable description and summary
thereof, and shall execute a supplement to this Instrument in form and substance acceptable to Agent granting a security interest
in such commercial tort claim to Agent.

 

    	J-14

     

    

 

(3)         Grantor
hereby authorizes Agent, its counsel or its representative, at any time and from time to time, to file financing statements, amendments
and continuations that describe or relate to the Property or any portion thereof in such jurisdictions as Agent may deem necessary
or desirable in order to perfect the security interests granted by Grantor under this Instrument or any other Loan Document, and
such financing statements may contain, among other items as Agent may deem advisable to include therein, the federal tax identification
number of Grantor.

 

(4)         Grantor
shall not license, lease, sell or otherwise transfer any of the general intangibles to any third party during the term of this
Instrument and the Credit Agreement without the prior written consent of the Agent (which consent may be withheld in the Agent’s
sole discretion); and the Grantor will continue to use all trademarks, service marks and trade names in a consistent manner and
shall take all steps necessary to properly maintain any formal registrations on the general intangibles, and to defend and enforce
them, for the term of this Instrument and the Credit Agreement.

 

1.11       Further
Assurances; After-Acquired Property. At any time and from time to time, upon request by Agent, Grantor will make, execute and
deliver or cause to be made, executed and delivered, to Agent and, where appropriate, cause to be recorded and/or filed and from
time to time thereafter to be rerecorded and/or refiled at such time and in such offices and places as shall be deemed desirable
by Agent, any and all such other and further mortgages, deeds of trust, deeds to secure debt, security agreements, financing statements,
notice filings, continuation statements, instruments of further assurance, certificates and other documents as may, in the opinion
of Agent, be necessary or desirable in order to effectuate, complete, or perfect, or to continue and preserve (a) the obligation
of Grantor under the Guaranty, this Instrument or of Borrower and/or any other Person under the Credit Agreement and the other
Loan Documents and the Hedge Documents and (b) this Instrument as a first and prior lien upon and security interest in and
to all of the Property, whether now owned or hereafter acquired by Grantor, in each case, at no additional cost to Grantor (other
than de minimis fees), and so long as such further acts do not increase the obligations of Grantor or diminish the rights of Grantor
under the Loan Documents. Upon any failure by Grantor so to do, Agent may make, execute, record, file, re-record and/or refile
any and all such mortgages, deeds to secure debt, deeds of trust, security agreements, financing statements, continuation statements,
instruments, certificates, and documents for and in the name of Grantor and Grantor hereby irrevocably appoints Agent the agent
and attorney-in-fact of Grantor so to do. The lien hereof will automatically attach, without further act, to all after acquired
property attached to and/or used in the operation of the Property or any part thereof.

 

1.12       Expenses.
Grantor will pay or reimburse Agent, upon demand therefor, for all reasonable attorney’s fees, costs and expenses incurred
by Agent in any suit, action, legal proceeding or dispute of any kind (excluding, however, those wherein Grantor and Agent are
adversaries with each other and Grantor prevails therein) in which Lenders, Agent, or the holders of the Hedge Obligations is made
a party or appears as party plaintiff or defendant, affecting or arising in connection with the Secured Debt secured hereby, this
Instrument or the interest created herein, or the Property, including, but not limited to, the exercise of the power of sale contained
in this Instrument, any condemnation action involving the Property or any action to protect the security hereof; and any such amounts
paid by Lenders, Agent or the holders of the Hedge Obligations shall be added to the Secured Debt secured by the lien of this Instrument.

 

    	J-15

     

    

 

1.13       Subrogation.
Agent shall be subrogated to the claims and liens of all parties whose claims or liens are discharged or paid with the proceeds
of the Secured Debt secured hereby.

 

1.14       Limit
of Validity. If from any circumstances whatsoever fulfillment of any provision of this Instrument, the Guaranty, the Credit
Agreement, the Note, any other Loan Document or any Hedge Document, at the time performance of such provision shall be due, shall
be subject to the defense of usury or otherwise transcend or violate applicable law concerning interest or other charges, then
ipso facto the obligation to be fulfilled shall be reduced to the limit, so that in no event shall any exaction be possible under
this Instrument, the Guaranty, the Note, the Credit Agreement, any other Loan Document or any Hedge Document be subject to the
defense of usury or otherwise transcend or violate applicable law concerning interest or other charges that is in excess of the
current limit, but such obligation shall be fulfilled to the maximum limit permitted. The provisions of this Section 1.14
shall control every other provision of this Instrument, the Guaranty, the Note, the Credit Agreement, any other Loan Document or
any Hedge Document.

 

1.15       Conveyance
of Property. Grantor hereby acknowledges to Agent that (a) the identity and expertise of Grantor was and continues to
be a material circumstance upon which Agent has relied in connection with, and which constitute valuable consideration to Agent
for, the extending to the Borrower of the loans and other extensions of credit evidenced by the Note and Credit Agreement, and
(b) any change in such identity or expertise could materially impair or jeopardize the security for the payment of the Secured
Debt granted to Agent by this Instrument. Grantor therefore covenants and agrees with Agent, as part of the consideration for the
extending to the Borrower of the loans evidenced by the Note, that Grantor shall not convey, transfer, assign, further encumber
or pledge any or all of its interest in the Property except as permitted under the Credit Agreement.

 

ARTICLE
2

 

2.01       Events
of Default. The terms “Default” and “Event of Default” as used herein shall have the following meanings:

 

“Default” shall
mean any event which, with the giving of notice or the lapse of time, or both, would become an Event of Default.

 

    	J-16

     

    

 

“Event of Default”
shall mean (a) an Event of Default under the Credit Agreement or any other Loan Document, or (b) any default in the performance
of any obligations of Grantor hereunder which is not cured within any applicable grace and/or cure period, if any, provided in
the Credit Agreement (it being acknowledged by Grantor that no such cure period is provided with respect to any default (i) under
Section 1.05, (ii) under Section 1.08, (iii) under Section 1.15, or (iv) excluded from any provision for a grace period or cure
of defaults contained in the Credit Agreement, or any other agreement evidencing or securing the Secured Debt), or (c) any amendment
to or termination of a financing statement naming Grantor as debtor and Agent as secured party, or any correction statement with
respect thereto, is filed in any jurisdiction by, or caused by, or at the instance of Grantor or by, or caused by, or at the instance
of any principal, member, general partner or officer of Grantor (collectively, “Grantor Party”) without the prior written
consent of Agent, or (d) any amendment to or termination of a financing statement naming Grantor as debtor and Agent as secured
party, or any correction statement with respect thereto, is filed in any jurisdiction by any party other than a Grantor Party or
Agent or Agent’s counsel without the prior written consent of Agent and Grantor fails to use its best efforts to cause the
effect of such filing to be completely nullified to the reasonable satisfaction of Agent within ten (10) days after notice to Grantor
thereof.

 

2.02       Acceleration
of Maturity. If an Event of Default shall have occurred and be continuing, then the entire Secured Debt secured hereby shall,
at the option of Agent and as permitted by the terms of the Credit Agreement, immediately become due and payable without notice
or demand except as required by law, time being of the essence of this Instrument.

 

2.03       Right
to Enter and Take Possession.

 

(a)          If
an Event of Default shall have occurred and be continuing, Grantor, upon demand of Agent, shall forthwith surrender to Agent the
actual possession of the Property, and if and to the extent permitted by law, Agent itself, or by such officers or agents as it
may appoint, may enter and take possession of all the Property (or such portion or portions as Agent may select) without the appointment
of a receiver, or an application therefor, and may exclude Grantor and its agents and employees wholly therefrom, and may have
joint access with Grantor to the books, papers and accounts of Grantor.

 

(b)          If
Grantor shall for any reason fail to surrender or deliver the Property or any part thereof after such demand by Agent, Agent may
obtain a judgment or decree conferring upon Agent the right to immediate possession or requiring Grantor to deliver immediate possession
of the Property to Agent. Grantor will pay to Agent, upon demand, all reasonable expenses of obtaining such judgment or decree,
including reasonable compensation to Agent, its attorneys and agents; and all such expenses and compensation shall, until paid,
be deemed a part of the Secured Debt.

 

(c)          Upon
every such entering upon or taking of possession, Agent may hold, store, use, operate, manage and control the Property and conduct
the business thereof and, from time to time, (i) make all necessary and proper maintenance, repairs, renewals, replacements,
additions, betterments and improvements thereto and thereon and purchase or otherwise acquire additional fixtures, personalty and
other property; (ii) insure or keep the Property insured; (iii) lease, manage and operate the Property and exercise all
the rights and powers of Grantor to the same extent as Grantor could in its own name or otherwise with respect to the same; and
(iv) enter into any and all agreements with respect to the exercise by others of any of the powers herein granted Agent, all
as Agent from time to time may determine to be in its best interest. Agent may collect and receive all the rents, issues, profits
and revenues from the Property, including those past due as well as those accruing thereafter, and, after deducting (1) all
expenses of taking, holding, managing and operating the Property (including compensation for the services of all persons employed
for such purposes); (2) the cost of all such maintenance, repairs, renewals, replacements, additions, betterments, improvements,
purchases and acquisitions; (3) the cost of such insurance; (4) such taxes, assessments and other similar charges as
Agent may at its option pay; (5) other proper charges upon the Property or any part thereof; and (6) the reasonable compensation,
expenses and disbursements of the attorneys and agents of Agent, Agent shall apply the remainder of the monies and proceeds so
received by Agent in accordance with the Credit Agreement. Agent shall have no obligation to discharge any duties of a landlord
to any tenant or to incur any liability as a result of any exercise by Agent of any rights under this Instrument or otherwise.
Agent shall not be liable for any failure to collect rents, issues, profits and revenues from the Property, nor shall Agent be
liable to account for any such rents, issues, profits or revenues unless actually received by Agent.

 

    	J-17

     

    

 

(d)          Whenever
all that is due upon the Secured Debt and under any of the terms, covenants, conditions and agreements of this Instrument shall
have been paid, the Lenders have no obligation to make further Loans and the Issuing Lender has no further obligation to issue
Letters of Credit, all Letters of Credit have terminated, and all Events of Default cured, Agent shall surrender possession of
the Property to Grantor, its successors or assigns. The same right of taking possession, however, shall exist if any subsequent
Event of Default shall occur and be continuing.

 

2.04       Performance
by Agent. If there shall be an Event of Default in the payment, performance or observance of any term, covenant or condition
of this Instrument, Agent may, so long as such Event of Default continues, at its option, pay, perform or observe the same, and
all payments made or costs or expenses incurred by Agent in connection therewith, shall be secured hereby and shall be, upon demand,
repaid by Grantor to Agent with interest thereon at the Default Rate within five (5) Business Days of demand. Agent shall be the
sole judge of the necessity for any such actions and of the amounts to be paid. Agent is hereby empowered to enter and to authorize
others to enter upon the Land or any part thereof for the purpose of performing or observing any such defaulted term, covenant
or condition without thereby becoming liable to Grantor or any person in possession holding under Grantor.

 

2.05       Receiver.
If an Event of Default shall have occurred and be continuing, to the extent permitted by law, Agent, upon application to a court
of competent jurisdiction, shall be entitled as a matter of strict right without regard to the occupancy or value of any security
for the Secured Debt secured hereby or the solvency of any party bound for its payment, to the appointment of a receiver to take
possession of and to operate the Property (or such portion or portions as Agent may select) and to collect and apply the rents,
issues, profits and revenues thereof. The receiver shall have all of the rights and powers permitted under the laws of the State
of Georgia. Grantor will pay to Agent upon demand all reasonable expenses, including receiver’s fees, attorney’s fees,
costs and agent’s compensation, incurred pursuant to the provisions of this Section 2.05, and all such expenses shall
be secured by this Instrument.

 

    	J-18

     

    

 

2.06       Enforcement.

 

(a)          Power
of Sale. Upon the occurrence and during the continuance of an Event of Default, Agent, at its option, may sell, and is hereby
authorized and empowered to sell the Property or any part of the Property at one or more public sale or sales conducted at the
time and place and in the usual manner of the sheriff’s sales in the county in which the Land or any part of the Land is
situated, to the highest bidder for cash, in order to pay the indebtedness secured hereby, and all expenses of sale and of all
proceedings in connection therewith, including reasonable attorney’s fees, in bar of the right and equity of redemption,
homestead and all other rights and exemptions of every kind, if any (including, without limitation, all rights under any appraisement,
valuation, stay or extension laws and all rights to have the Property marshaled upon foreclosure hereof), which may now or hereafter
exist, all of which are hereby expressly waived by Grantor, after first advertising the time, place and terms of sale once a week
for four (4) weeks immediately preceding such sale (but without regard to the number of days) in a newspaper in which sheriff’s
sales are advertised in said county, all other notice being hereby waived by Grantor. At any such public sale, Agent may execute
and deliver to the purchaser a conveyance of the Property or any part of the Property in fee simple, with full warranties of title,
and to this end Grantor hereby constitutes and appoints Agent the agent and attorney-in-fact of Grantor to make such sale and conveyance,
and thereby to divest Grantor of all right, title and equity that Grantor may have in and to the Property and to vest the same
in the purchaser or purchasers at such sale or sales, and all the acts and doings of said agent and attorney-in-fact are hereby
ratified and confirmed, and any recitals in said conveyance or conveyances as to facts essential to a valid sale shall be binding
upon Grantor. The aforesaid power of sale and agency hereby granted are coupled with an interest and are irrevocable by death or
otherwise, are granted as cumulative of the other remedies provided hereby or by law for the collection of the indebtedness secured
hereby, and shall not be exhausted by one exercise thereof but may be exercised until full payment of all of the indebtedness secured
hereby. In the event of any sale under this Instrument by virtue of the exercise of the powers herein granted, or pursuant to any
order in any judicial proceeding or otherwise, the Property may be sold as an entirety or in separate parcels and in such manner
or order as Agent in its discretion may elect, and if Agent so elects, Agent may sell the personal property covered by this Instrument
concurrently with the real property covered hereby or at one or more separate sales in any manner permitted by any applicable Uniform
Commercial Code, and one or more exercises of the powers herein granted shall not extinguish nor exhaust such powers, until the
entire Property are sold or the indebtedness secured hereby is paid in full. Agent may, at its option, sell the Property subject
to the rights of any tenants, licenses, or lessees of the Property, and the failure to make any such tenants or licensees parties
to any foreclosure proceedings and to foreclose their rights will not be asserted by Grantor to be a defense to any proceedings
instituted by Agent to collect the indebtedness secured hereby. If the indebtedness secured hereby is now or hereafter further
secured by any chattel mortgages, pledges, contracts of guaranty, assignments of lease or other security instruments, Agent may
at its option exhaust the remedies granted under any of said security either concurrently or independently, and in such order as
Agent may determine in its discretion. Upon any foreclosure sale, Agent may bid for and purchase the Property and shall be entitled
to apply all or any part of the indebtedness secured hereby as a credit to the purchase price. In the event of any such foreclosure
sale by Agent, Grantor shall be deemed a tenant holding over and shall forthwith deliver possession to the purchaser or purchasers
at such sale or be summarily dispossessed according to provisions of law applicable to tenants holding over. Agent may proceed
to enforce any right, power or remedy of foreclosure under this Instrument upon the occurrence and continuation of an Event of
Default and without any requirement or condition that a judgment against Grantor or Borrower be obtained. In case Agent shall have
proceeded to enforce any right, power or remedy under this Instrument by foreclosure, entry or otherwise or in the event Agent
commences advertising of the intended exercise of the sale under power provided hereunder, and such proceeding or advertisement
shall have been withdrawn, discontinued or abandoned for any reason, then in every such case (i) Grantor and Agent shall be restored
to their former positions and rights, (ii) all rights, powers and remedies of Agent shall continue as if no such proceeding had
been taken, (iii) each and every Event of Default declared or occurring prior or subsequent to such withdrawal, discontinuance
or abandonment shall be deemed to be a continuing Event of Default, and (iv) neither this Instrument, nor the Note, nor the indebtedness
secured hereby, nor any other Loan Document shall be or shall be deemed to have been reinstated or otherwise affected by such withdrawal,
discontinuance or abandonment; and Grantor hereby expressly waives the benefit of any statute or rule of law now provided, or which
may hereafter be provided, which would produce a result contrary to or in conflict with this sentence.

 

    	J-19

     

    

 

(b)          If
an Event of Default shall have occurred and be continuing, Agent may, in addition to and not in abrogation of the rights covered
under subparagraph (a) of this Section 2.06, either with or without entry or taking possession as herein provided or otherwise,
proceed by a suit or suits in law or in equity or by any other appropriate proceeding or remedy (i) to enforce payment of
the Secured Debt or the performance of any term, covenant, condition or agreement of this Instrument or any other right, and (ii) to
pursue any other remedy available to it, all as Agent shall determine most effectual for such purposes.

 

(c)          Grantor
hereby expressly waives any and all benefits Grantor may have under O.C.G.A. § 44-14-85 to claim or assert that the indebtedness
has been reinstated in accordance with its terms following the withdrawal of any foreclosure proceedings by Grantee, and acknowledges
and agrees that reinstatement shall occur only upon the written agreement of Grantee.

 

2.07       Purchase
by Agent. Upon any foreclosure sale, Agent, on behalf of the Lenders and the holders of the Hedge Obligations, may bid for
and purchase the Property and shall be entitled to apply all or any part of the Secured Debt secured hereby as a credit to the
purchase price. Agent shall be permitted to assign its credit bid to any third party.

 

2.08       Application
of Proceeds of Sale. The proceeds received by Agent as a result of the foreclosure sale of the Property or the exercise of
any other rights or remedies hereunder shall be applied in the manner provided for in the Credit Agreement.

 

2.09       Grantor
as Tenant Holding Over. In the event of any such foreclosure sale by Agent, Grantor shall be deemed a tenant holding over and
shall forthwith deliver possession to the purchaser or purchasers at such sale or be summarily dispossessed according to provisions
of law applicable to tenants holding over.

 

2.10       Waiver
of Appraisement, Valuation, Stay, Extension and Redemption Laws. Grantor agrees, to the full extent permitted by law, that
in case of an Event of Default, neither Grantor nor anyone claiming through or under it shall or will set up, claim or seek to
take advantage of any appraisement, valuation, stay, extension, homestead, exemption or redemption laws now or hereafter in force,
and Grantor, for itself and all who may at any time claim through or under it, hereby waives to the full extent that it may lawfully
so do, the benefit of all such laws, and any and all right to have the assets comprised in the security intended to be created
hereby marshaled upon any foreclosure of the lien hereof.

 

    	J-20

     

    

 

2.11       Waiver
of Homestead. Grantor hereby waives and renounces all homestead and exemption rights provided for by the Constitution and the
laws of the United States and of any state, in and to the Property as against the collection of the Secured Debt, or any part hereof.

 

2.12       Leases;
Licensees. Agent, at its option, is authorized to foreclose this Instrument subject to the rights of any tenants, lessees and
licensees of the Property, and the failure to make any such tenants, lessees or licensees parties to any such foreclosure proceedings
and to foreclose their rights will not be, nor be asserted by Grantor to be a defense to any proceedings instituted by Agent to
collect the sums secured hereby.

 

2.13       Discontinuance
of Proceedings and Restoration of the Parties. In case Agent shall have proceeded to enforce any right, power or remedy under
this Instrument by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason,
or shall have been determined adversely to Agent, then and in every such case Grantor and Agent shall be restored to their former
positions and rights hereunder, and all rights, powers and remedies of Agent shall continue as if no such proceeding had been taken.

 

2.14       Remedies
Cumulative. No right, power or remedy conferred upon or reserved to Agent by this Instrument is intended to be exclusive of
any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent and may be
exercised against Grantor as Agent may select and shall be in addition to any other right, power and remedy given hereunder or
now or hereafter existing at law or in equity or by statute.

 

2.15       Waiver.

 

(a)          No
delay or omission of Agent, any Lender or any holder of the Hedge Obligations to exercise any right, power or remedy accruing upon
any Default or Event of Default shall exhaust or impair any such right, power or remedy or shall be construed to be a waiver of
any such Default or Event of Default, or acquiescence therein; and every right, power and remedy given by this Instrument to Agent
may be exercised from time to time and as often as may be deemed expedient by Agent. No consent or waiver, expressed or implied,
by Agent to or of any Default or Event of Default by Grantor in the performance of the obligations thereof hereunder shall be deemed
or construed to be a consent or waiver to or of any other Default or Event of Default in the performance of the same or any other
obligations of Grantor hereunder. Failure on the part of Agent, the Lenders or any holder of the Hedge Obligations to complain
of any act or failure to act or to declare a Default or Event of Default, irrespective of how long such failure continues, shall
not constitute a waiver by Agent, any Lender or any holder of the Hedge Obligations of its rights hereunder or impair any rights,
powers or remedies consequent on any Default or Event of Default by Grantor.

 

    	J-21

     

    

 

(b)          If
Lenders or Agent on behalf of the Lenders, or any holder of the Hedge Obligations, (i) grant forbearance or an extension of
time for the payment of any sums secured hereby; (ii) take other or additional security for the payment of any sums secured
hereby; (iii) waive or do not exercise any right granted herein or in the Note, the Credit Agreement, any other Loan Document
or any Hedge Document; (iv) release any part of the Property from the lien of this Instrument or otherwise change any of the
terms, covenants, conditions or agreements of the Note, this Instrument, any other Loan Document, or any Hedge Document; (v) consent
to the filing of any map, plat or replat affecting the Property; (vi) consent to the granting of any easement or other right
affecting the Property; or (vii) make or consent to any agreement subordinating the lien hereof, any such act or omission
shall not release, discharge, modify, change or affect the original liability under the Note, the Credit Agreement, the Guaranty,
this Instrument or any other obligation of Grantor, or any subsequent purchaser of the Property or any part thereof, or any maker,
co-signer, endorser, surety or guarantor; nor shall any such act or omission preclude Agent from exercising any right, power or
privilege herein granted or intended to be granted in the event of any Default or Event of Default then made or of any subsequent
Default or Event of Default; nor, except as otherwise expressly provided in an instrument or instruments executed by Agent, shall
the lien of this Instrument be altered thereby. In the event of the sale or transfer by operation of law or otherwise of all or
any part of the Property, Agent, without notice, is hereby authorized and empowered to deal with any such vendee or transferee
with reference to the Property or the Secured Debt secured hereby, or with reference to any of the terms, covenants, conditions
or agreements hereof, as fully and to the same extent as it might deal with the original parties hereto and without in any way
releasing or discharging any liabilities, obligations or undertakings.

 

2.16       Suits
to Protect the Property. Agent shall have power (a) to institute and maintain such suits and proceedings as it may deem
expedient to prevent any impairment of the Property by any acts which may be unlawful or in violation of this Instrument, (b) to
preserve or protect its interest in the Property and in the rents, issues, profits and revenues arising therefrom, and (c) to
restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional
or otherwise invalid, if the enforcement of or compliance with such enactment, rule or order would impair the security hereunder
or be prejudicial to the interest of Lenders or the holders of the Hedge Obligations.

 

2.17       Agent
May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment,
composition or other proceedings affecting Grantor, its creditors or its property, Agent, to the extent permitted by law, shall
be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of Agent,
Lenders or the holders of the Hedge Obligations allowed in such proceedings for the entire amount due and payable by Grantor under
this Instrument at the date of the institution of such proceedings and for any additional amount which may become due and payable
by Grantor hereunder after such date.

 

    	J-22

     

    

 

2.18       WAIVER
OF GRANTOR’S RIGHTS. BY EXECUTION OF THIS INSTRUMENT, GRANTOR EXPRESSLY: (A) ACKNOWLEDGES THE RIGHT OF AGENT AND/OR
THE LENDERS AND/OR THE HOLDERS OF THE HEDGE OBLIGATIONS TO ACCELERATE THE SECURED DEBT AND, TO THE EXTENT PERMITTED BY LAW, THE
POWER OF AGENT TO SELL THE PROPERTY BY NONJUDICIAL FORECLOSURE UPON AN EVENT OF DEFAULT BY GRANTOR WITHOUT ANY JUDICIAL HEARING
AND WITHOUT ANY NOTICE OTHER THAN SUCH NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO BE GIVEN UNDER THE PROVISIONS OF THIS INSTRUMENT
OR BY LAW; (B) TO THE FULL EXTENT PERMITTED BY LAW, WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER THE CONSTITUTION
OF THE UNITED STATES (INCLUDING, WITHOUT LIMITATION, THE FIFTH AND FOURTEENTH AMENDMENTS THEREOF), THE VARIOUS PROVISIONS OF THE
CONSTITUTIONS FOR THE SEVERAL STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, TO NOTICE AND TO JUDICIAL HEARING PRIOR TO THE
EXERCISE BY AGENT OF ANY RIGHT OR REMEDY HEREIN PROVIDED TO AGENT, EXCEPT SUCH NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO BE
PROVIDED IN THIS INSTRUMENT OR BY APPLICABLE LAW; (C) ACKNOWLEDGES THAT GRANTOR HAS READ THIS INSTRUMENT AND THE OTHER LOAN
DOCUMENTS AND ANY AND ALL QUESTIONS REGARDING THE LEGAL EFFECT OF THIS INSTRUMENT AND THE OTHER LOAN DOCUMENTS AND THEIR PROVISIONS
HAVE BEEN EXPLAINED FULLY TO GRANTOR AND GRANTOR HAS CONSULTED WITH COUNSEL OF GRANTOR’S CHOICE PRIOR TO EXECUTING THIS INSTRUMENT;
AND (D) ACKNOWLEDGES THAT ALL WAIVERS OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY, INTENTIONALLY AND WILLINGLY
BY GRANTOR AS PART OF A BARGAINED FOR LOAN TRANSACTION.

 

2.19       Claims
Against Agent, Lenders and Holders of Hedge Obligations. No action at law or in equity shall be commenced, or allegation made,
or defense raised, by Grantor against Agent, the Lenders or any holder of the Hedge Obligations for any claim under or related
to this Instrument, the Note, the Credit Agreement, the Guaranty or any other instrument, document, transfer, conveyance, assignment
or loan agreement given by Grantor with respect to the Secured Debt secured hereby, or related to the conduct of the parties thereunder,
unless written notice of such claim, expressly setting forth the particulars of the claim alleged by Grantor, shall have been given
to Agent within sixty (60) days from and after the initial awareness of Grantor of the event, omission or circumstances forming
the basis of Grantor for such claim. Any failure by Grantor to timely provide such written notice to Agent shall constitute a waiver
by Grantor of such claim.

 

2.20       Indemnification;
Subrogation; Waiver of Offset.

 

(a)          Grantor
shall indemnify, defend and hold the Agent, the Lenders and the holders of the Hedge Obligations (the “Indemnified Parties”)
harmless for, from and against any and all liability, obligations, losses, damages, penalties, claims, actions, suits, costs and
expenses (including Agent’s reasonable attorneys’ fees, together with reasonable appellate counsel fees, if any) of
whatever kind or nature which may be asserted against, imposed on or incurred by any Indemnified Party in connection with the Secured
Debt, this Instrument, the Property, or any part thereof, or the exercise by Agent of any rights or remedies granted to it under
this Instrument; provided, however, that nothing herein shall be construed to obligate Grantor to indemnify, defend and hold harmless
any Indemnified Party for, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions,
suits, costs and expenses asserted against, imposed on or incurred by such Indemnified Party by reason of such Person’s willful
misconduct or gross negligence if a judgment is entered against such Indemnified Party by a court of competent jurisdiction after
the expiration of all applicable appeal periods.

 

    	J-23

     

    

 

(b)          If
an Indemnified Party is made a party defendant to any litigation or any claim is threatened or brought against an Indemnified Party
concerning the Secured Debt, this Instrument, the Property, or any part thereof, or any interest therein, or the construction,
maintenance, operation or occupancy or use thereof, then Grantor shall indemnify, defend and hold such Person harmless for, from
and against all liability by reason of said litigation or claims, including reasonable attorneys’ fees (together with reasonable
appellate counsel fees, if any) and expenses incurred by such Person in any such litigation or claim, whether or not any such litigation
or claim is prosecuted to judgment; provided, however, that nothing in this Section 2.20(b) shall be construed to obligate
Grantor to indemnify, defend and hold harmless an Indemnified Party for, from and against any and all liabilities or claims imposed
on or incurred by such Person by reason of such Person’s willful misconduct or gross negligence if a judgment is entered
against such Person by a court of competent jurisdiction after expiration of all applicable appeal periods. If Agent commences
an action against Grantor to enforce any of the terms hereof or to prosecute any breach by Grantor of any of the terms hereof or
to recover any sum secured hereby, Grantor shall pay to Agent its reasonable attorneys’ fees (together with reasonable appellate
counsel fees, if any) and expenses. In the event the Secured Debt, or any part thereof, are collected by or through an attorney
at law, Grantor agrees to pay all costs of collection, including, but not limited to, reasonably attorney’s fees. The right
to such attorneys’ fees (together with reasonable appellate counsel fees, if any) and expenses shall be deemed to have accrued
on the commencement of such action, and shall be enforceable whether or not such action is prosecuted to judgment. If Grantor breaches
any term of this Instrument, Agent may engage the services of an attorney or attorneys to protect its rights hereunder, and in
the event of such engagement following any breach by Grantor, Grantor shall pay Agent reasonable attorneys’ fees (together
with reasonable appellate counsel fees, if any) and expenses incurred by Agent, whether or not an action is actually commenced
against Grantor by reason of such breach. All references to “attorneys” in this Subsection and elsewhere in this Instrument
shall include without limitation any attorney or law firm engaged by Agent and Agent’s in-house counsel, and all references
to “fees and expenses” in this Subsection and elsewhere in this Instrument shall include without limitation any fees
of such attorney or law firm and any allocation charges and allocation costs of Agent’s in-house counsel.

 

(c)          A
waiver of subrogation shall be obtained by Grantor from its insurance carrier and, consequently, Grantor waives any and all right
to claim or recover against Indemnified Parties and each of their respective officers, employees, agents and representatives, for
loss of or damage to Grantor, the Property, Grantor’s property or the property of others under Grantor’s control from
any cause insured against or required to be insured against by the provisions of this Instrument.

 

(d)          ALL
SUMS PAYABLE BY GRANTOR HEREUNDER SHALL BE PAID WITHOUT NOTICE (EXCEPT AS MAY OTHERWISE BE PROVIDED HEREIN), DEMAND, COUNTERCLAIM,
SETOFF, DEDUCTION OR DEFENSE AND WITHOUT ABATEMENT, SUSPENSION, DEFERMENT, DIMINUTION OR REDUCTION, AND THE SECURED DEBT AND LIABILITIES
OF GRANTOR HEREUNDER SHALL IN NO WAY BE RELEASED, DISCHARGED OR OTHERWISE AFFECTED BY REASON OF: (I) ANY DAMAGE TO OR DESTRUCTION
OF OR ANY CONDEMNATION OR SIMILAR TAKING OF THE PROPERTY OR ANY PART THEREOF; (II) ANY RESTRICTION OR PREVENTION OF OR INTERFERENCE
WITH ANY USE OF THE PROPERTY OR ANY PART THEREOF; (III) ANY TITLE DEFECT OR ENCUMBRANCE OR ANY EVICTION FROM THE LAND OR THE
IMPROVEMENTS ON THE LAND OR ANY PART THEREOF BY TITLE PARAMOUNT OR OTHERWISE; (IV) ANY BANKRUPTCY, INSOLVENCY, REORGANIZATION,
COMPOSITION, ADJUSTMENT, DISSOLUTION, LIQUIDATION, OR OTHER LIKE PROCEEDING RELATING TO AN INDEMNIFIED PARTY OR ANY ACTION TAKEN
WITH RESPECT TO THIS INSTRUMENT BY AGENT OR BY ANY RECEIVER OF AGENT, OR BY ANY COURT, IN SUCH PROCEEDING; (V) ANY CLAIM WHICH
GRANTOR HAS, OR MIGHT HAVE, AGAINST AN INDEMNIFIED PARTY; (VI) ANY DEFAULT OR FAILURE ON THE PART OF AN INDEMNIFIED PARTY
TO PERFORM OR COMPLY WITH ANY OF THE TERMS HEREOF OR OF ANY OTHER AGREEMENT WITH GRANTOR; OR (VII) ANY OTHER OCCURRENCE WHATSOEVER,
WHETHER SIMILAR OR DISSIMILAR TO THE FOREGOING, WHETHER OR NOT GRANTOR SHALL HAVE NOTICE OR KNOWLEDGE OF ANY OF THE FOREGOING.
GRANTOR WAIVES ALL RIGHTS NOW OR HEREAFTER CONFERRED BY STATUTE OR OTHERWISE TO ANY ABATEMENT, SUSPENSION, DEFERMENT, DIMINUTION,
OR REDUCTION OF ANY SUM SECURED HEREBY AND PAYABLE BY GRANTOR.

 

    	J-24

     

    

 

2.21       Revolving
Credit/Future Advance. This Instrument secures Secured Debt which may provide for a variable rate of interest as well as revolving
credit advances and other future advances, whether such advances are obligatory or otherwise. Advances under the Note are subject
to the terms and provisions of the Credit Agreement. Grantor acknowledges that the Secured Debt may increase or decrease from time
to time and that if the outstanding balance of the Secured Debt is ever repaid to zero the security title and security interest
created by this Instrument shall not be deemed released or extinguished by operation of law or implied intent of the parties. This
Instrument shall remain in full force and effect as to any further advances under the Credit Agreement made after any such zero
balance until the Secured Debt is paid in full, all agreements to make further advances or issue further Letters of Credit have
been terminated and this Instrument has been canceled of record. Grantor waives the operation of any applicable statutes, case
law or regulation having a contrary effect.

 

ARTICLE
3

 

3.01       Successors
and Assigns. This Instrument shall inure to the benefit of and be binding upon Grantor and Agent and their respective heirs,
executors, legal representatives, successors and assigns. Whenever a reference is made in this Instrument to Grantor or Agent such
reference shall be deemed to include a reference to the heirs, executors, legal representatives, successors and assigns of Grantor
or Agent.

 

3.02       Terminology.
All personal pronouns used in this Instrument whether used in the masculine, feminine or neuter gender, shall include all other
genders; the singular shall include the plural, and vice versa. Titles and Articles are for convenience only and neither limit
nor amplify the provisions of this Instrument itself, and all references herein to Articles, Sections or subsections thereof, shall
refer to the corresponding Articles, Sections or subsections thereof, of this Instrument unless specific reference is made to such
Articles, Sections or subsections thereof of another document or instrument.

 

    	J-25

     

    

 

3.03       Severability.
If any provision of this Instrument or the application thereof to any person or circumstance shall be invalid or unenforceable
to any extent, the remainder of this Instrument and the application of such provisions to other persons or circumstances shall
not be affected thereby and shall be enforced to the greatest extent permitted by law.

 

3.04       Applicable
Law. This Instrument will be governed by the substantive laws of the State of Georgia, without giving effect to its principles
of choice of law or conflicts of law (except with respect to choice of law or conflicts of law provisions of its Uniform Commercial
Code), and the laws of the United States applicable to transactions in the State of Georgia. Should any obligation or remedy under
this Instrument be invalid or unenforceable pursuant to the laws provided herein to govern, the laws of any other state referred
to herein or of another state whose laws can validate and apply thereto shall govern.

 

3.05       Notices.
Except as otherwise provided herein, any notice or other communication required hereunder shall be in writing, and shall be deemed
to have been validly served, given or delivered if given and delivered as provided in the Guaranty if given to Grantor or as provided
in the Credit Agreement if given to Agent.

 

3.06       Conflict
with Credit Agreement Provisions. Grantor hereby acknowledges and agrees that, in the event of any conflict between the terms
hereof and the terms of the Credit Agreement, the terms of the Credit Agreement shall control; provided that if the Credit Agreement
and this Instrument have a different standard or requirement for a representation, warranty, covenant or other obligation, the
Grantor will be required to comply with the higher standard or more exacting requirement; further provided that the inclusion in
this Instrument of terms and provisions, supplemental rights or remedies in favor of the Agent not addressed in the Credit Agreement
shall not be deemed to be a conflict with the Credit Agreement and all such additional terms, provisions, supplemental rights or
remedies contained herein shall be given full force and effect.

 

3.07       Assignment.
This Instrument is assignable by Agent and any assignment hereof by Agent shall operate to vest in the assignee all rights and
powers herein conferred upon and granted to Agent.

 

3.08       Time
of the Essence. Time is of the essence with respect to each and every covenant, agreement and obligation of Grantor under this
Instrument, and any and all other instruments now or hereafter evidencing, securing or otherwise relating to the Secured Debt.

 

3.09       Credit
Agreement. Notwithstanding anything contained herein to the contrary, Grantor agrees to be bound to all of the terms and conditions
of the Credit Agreement that (i) apply to the Property or Grantor, including without limitation, Section 7.7 and 7.13 of
the Credit Agreement relating to insurance, casualty and condemnation and leases, and (ii) relate to grace and/or notice and
cure periods, notices of default and acceleration of the Secured Debt, including without limitation, Sections 12.1 and 12.2
of the Credit Agreement. Additionally, Grantor does hereby unconditionally make, warrant, represent, and reaffirm each and every
warranty, covenant and representation set forth in the Credit Agreement concerning the Property as if the Property were Real Estate
or a Mortgaged Property under the Credit Agreement.

 

    	J-26

     

    

 

3.10       Grantor.
Unless the context clearly indicates otherwise, as used in this Instrument, “Grantor” means the grantors named in recitals
hereof or any of them. The obligations of Grantor hereunder, if more than one, shall be joint and several. If any Grantor, or any
signatory who signs on behalf of any Grantor, is a corporation, partnership or other legal entity, Grantor and any such signatory,
and the person or persons signing for it, represent and warrant to Agent that this Instrument is executed, acknowledged and delivered
by Grantor’s duly authorized representatives.

 

3.11       Lien
of This Instrument. The words “lien of this Instrument” or words of similar import in this Instrument shall mean
the lien, security title and security interest hereby created and conveyed.

 

[CONTINUED ON NEXT PAGE]

 

    	J-27

     

    

 

IN WITNESS WHEREOF, Grantor has executed
this Instrument under seal as of the day and year first above written.

 

	Signed, sealed and delivered	 	_______________________________, 
	in the presence of:	 	a _____________________________
	 	 	By:________________________________
	                                                                    	 	Name:______________________________
	Unofficial Witness	 	Title:_______________________________
	 	 	 
	                                                                   	 	(SEAL)
	Notary Public	 	 
	 	 	 
	Commission Expiration Date:	 	 
	 	 	 
	                                                                   	 	 
	 	 	 
	[Notarial Seal]	 	 

 

[Signature Page
to Deed to Secure Debt]

 

    	J-28

     

    

 

exhibit
“a”

 

Legal Description

 

    	J-29

     

    

 

EXHIBIT
“B”

 

Permitted Encumbrances

 

Permitted Encumbrances are such matters
as are shown on Schedule B to the marked Pro Forma Loan Policy (File No. ______________) issued by ___________________________
to Agent, and attached to that certain escrow letter dated on or near the date hereof from Agent’s counsel to _________________________________________.

 

    	J-30

     

    

 

EXHIBIT
“C”

 

Schedule 1

(Description of “Debtor” and “Secured Party”)

 

		A.	Debtor:

 

_________________, a ________________,
organized under the laws of ____________________________. Debtor has been using or operating under said name and identity or corporate
structure without change since _____________________.

 

Names and Tradenames used within
last five years:

 

Current mailing Address and Chief
Executive Office:

 

________________

___________________

 

Organizational Number: ____________________________

 

Federal Tax Identification Number:
____________________

 

		B.	Secured Party:

 

KEYBANK NATIONAL ASSOCIATION, a national
banking association, as Agent.

 

    	J-31

     

    

 

Schedule
2

 

(Notice
Mailing Addresses of “Debtor” and “Secured Party”)

 

		A.	The mailing address of Debtor is:

 

_________________________________

c/o Jernigan Capital Operating Company,
LLC

6410 Poplar Avenue

Suite 650

Memphis, Tennessee 38119

Attn: John A. Good

 

		B.	The mailing address of Secured Party is:

 

KeyBank National Association, as
Agent

4910 Tiedeman Road, 3rd Floor

Brooklyn, Ohio 44144

Attn: Real Estate Capital Services

 

    	J-32

     

    

 

EXHIBIT
k

 

FORM
OF ASSIGNMENT OF LEASES AND RENTS

 

PREPARED BY AND AFTER

RECORDING, RETURN TO:

William F. Timmons, Esq.

Dentons US LLP

303 Peachtree Street N.E., Suite 5300

Atlanta, Georgia 30308

 

ASSIGNMENT
OF LEASES AND RENTS

 

THIS ASSIGNMENT OF
LEASES AND RENTS (this “Assignment”) is made as of ____________, 201__, by _____________________,
a ________________________ (“Assignor”), having a mailing address of c/o Jernigan Capital Operating Company,
LLC, 6410 Poplar Avenue, Suite 650, Memphis, Tennessee 38119, Attn: John A. Good, to KEYBANK NATIONAL ASSOCIATION, a national
banking association (“KeyBank”), having a mailing address of 4910 Tiedeman Road, 3rd Floor, Brooklyn,
Ohio 44144, Attn: Real Estate Capital Services, with a copy to KeyBank National Association, 127 Public Square, Cleveland, Ohio
44144, Attn: Sara Jo Smith, as Agent for itself and each other lender (collectively, the “Lenders”) which is
or may hereafter become a party to that certain First Amended and Restated Credit Agreement, dated as of December 28, 2018, by
and among Jernigan Capital Operating Company, LLC, a Delaware limited liability company (the “Borrower”), KeyBank,
as Agent and the Lenders (as the same may be varied, amended, restated, renewed, consolidated, extended or otherwise supplemented
from time to time, the “Credit Agreement”) (KeyBank, in its capacity as Agent, is hereinafter referred to as
“Agent”).

 

ASSIGNOR, for
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and AS ADDITIONAL SECURITY, does
hereby presently, irrevocably and unconditionally GRANT, SELL, CONVEY, ASSIGN, TRANSFER, SET OVER AND DELIVER to Agent, for the
ratable benefit of the Lenders and the holders of the Hedge Obligations, as additional security, the entire lessor’s, landlord’s
or licensor’s interest in and to all leases, subleases (to the full extent of Assignor’s right, title and interest
therein), tenant contracts, rental agreements, license agreements, occupancy agreements or agreements of a similar nature, whether
written or oral, now or hereafter affecting the Property (as defined in the Deed to Secure Debt, Security Agreement and Assignment
of Leases and Rents dated of even date herewith executed by Assignor to Agent, the Lenders and the holders of the Hedge Obligations
(as the same may be varied, amended, restated, renewed, consolidated, extended or otherwise supplemented from time to time, the
“Instrument”)), or any part thereof, which Property includes that certain lot or piece of land, more particularly
described in Exhibit A attached hereto, together with all lease, security, damage or other deposits and all guarantees
of the foregoing and letters of credit or other security relating to the performance or obligations of any tenants, lessees or
licensees thereunder (all of the leases and other agreements and guarantees described above together with all present and future
leases and present and future agreements and any amendment, modification, extension or renewal of the same are hereinafter collectively
referred to as the “Leases”);

 

    	K-1

     

    

 

TOGETHER WITH all rents,
income, issues, revenues and profits arising from the Leases and renewals thereof and together with all rents, income, issues and
profits from the use, enjoyment and occupancy of the Property (including, but not limited to, minimum rents, additional rents,
percentage rents, deficiency rents, security deposits and liquidated damages following default under any Leases, all proceeds payable
under any policy of insurance, all of Assignor’s rights to recover monetary amounts from any lessee under the Leases in bankruptcy
including, without limitation, rights of recovery for use and occupancy and damage claims arising out of defaults under the Leases,
including rejection of a Lease, together with any sums of money that may now or at any time hereafter be or become due and payable
to Assignor by virtue of any and all lease termination payments, royalties, overriding royalties, bonuses, delay rentals and any
other amount of any kind or character arising under any and all present and future oil, gas and mining Leases covering the Property
or any part thereof, and all rents under and as defined in the Leases) (all of the rights described above hereinafter collectively
referred to as the “Rents”).

 

THIS ASSIGNMENT is made
for the purposes of additionally securing the following described indebtedness (collectively the “Secured Debt”):

 

(a)          The
debt evidenced by (i) those certain Revolving Credit Notes made by the Borrower in the aggregate principal face amount of
_____________________ and No/100 Dollars ($_____________________) to the order of the Lenders, each of which has been issued pursuant
to the Credit Agreement and each of which is due and payable in full on or before December 28, 2021, as such date may be extended
to December 28, 2023, and which evidence a revolving credit loan in the initial principal amount of up to $_____________________,
and which may be increased up to Four Hundred Million and No/100 Dollars ($400,000,000.00) pursuant to Section 2.11 of the Credit
Agreement, (ii) that certain Swing Loan Note made by Borrower in the principal amount of _____________________ and No/100 Dollars
($_____________________) to the order of KeyBank, which is due and payable in full on or before December 28, 2021, as such date
may be extended to December 28, 2023, and (iii) each other note as may be issued under the Credit Agreement, including, without
limitation, to reflect any increase of the revolving credit loan described herein, and which is due and payable on or before December
28, 2021, as such date may be extended to December 28, 2023, each as originally executed, or if varied, extended, supplemented,
consolidated, amended, replaced, renewed, modified or restated from time to time as so varied, extended, supplemented, consolidated,
amended, replaced, renewed, modified or restated (collectively, the “Note”);

 

(b)          The
payment, performance and discharge of each and every obligation, covenant and agreement of Assignor contained herein or of Assignor
contained in that certain First Amended and Restated Unconditional Guaranty of Payment and Performance by Assignor and others in
favor of KeyBank, as Agent for itself and each other Lender, dated as of December 28, 2018 (as amended, restated, modified, renewed,
supplemented or extended from time to time, the “Guaranty”), of Borrower contained in the Credit Agreement,
and of Assignor and Borrower in the other Loan Documents, including, without limitation, the obligation of Borrower to reimburse
Issuing Lender for any draws under the Letters of Credit;

 

    	K-2

     

    

 

(c)          Any
and all additional advances made by Agent or any Lender to protect or preserve the Property or the lien and security title hereof
in and to the Property, or for taxes, assessments or insurance premiums as hereinafter provided (whether or not Assignor is the
owner of the Property at the time of such advances);

 

(d)          Any
and all other indebtedness, obligations and liabilities now or hereafter owing or to be performed by Borrower, Assignor or any
other Guarantor to any Lender or Agent pursuant to the terms of the Credit Agreement or the other Loan Documents to which Borrower,
Assignor or any other Guarantor are a party, whether now existing or hereafter arising or incurred, however evidenced or incurred,
whether express or implied, direct or indirect, absolute or contingent, due or to become due, including, without limitation, all
principal, interest, fees, expenses, yield maintenance amounts and indemnification amounts, and all renewals, modifications, consolidations,
replacements and extensions thereof;

 

(e)          The
full and prompt payment and performance by Borrower of each and all of the Hedge Obligations (as defined in the Credit Agreement);
and

 

(f)          The
Enforcement Costs (as defined in the Instrument).

 

Notwithstanding anything to the contrary
contained herein, under no circumstances shall the “Secured Debt” as defined herein include any obligation that constitutes
an Excluded Hedge Obligation of Assignor.

 

Assignor warrants to
Agent that (a) Assignor is the sole owner of the entire lessor’s interest in the Leases and the Rents; (b) the Leases have
not been altered, modified or amended in any manner whatsoever except as disclosed to Agent in writing and are valid, enforceable
and in full force and effect; (c) neither the Leases nor the Rents reserved in the Leases have been assigned or otherwise pledged
or hypothecated (other than pursuant to this Assignment and the Instrument); (d) none of the Rents have been collected for more
than one (1) month in advance; (e) Assignor has full power and authority to execute and deliver this Assignment and the execution
and delivery of this Assignment has been duly authorized and does not conflict with or constitute a default under any law, judicial
order or other agreement affecting Assignor or the Property; and (f) there exist no offsets or defenses to the payment of any portion
of the Rents.

 

Assignor covenants with
Agent that Assignor (a) shall observe and perform all the obligations imposed upon the lessor under the Leases and shall not do
or permit to be done anything to impair the value of the Leases as security for the Secured Debt; (b) shall enforce the performance
and observance of the obligations of the other parties to the Leases to be performed thereunder; (c) will appear in and defend
any action arising out of, or in any manner connected with, any of the Leases, or the obligations or liabilities of Assignor as
the landlord, lessor or licensor thereof, or any tenant, lessee, licensee or any guarantor thereunder; (d) shall not collect any
Rents more than one (1) month in advance; (e) shall not execute any other assignment of lessor’s interest in the Leases or
the Rents (other than the Instrument); (f) shall execute and deliver at the request of Agent all such further assurances, confirmations
or assignments in connection with the Property as Agent shall from time to time reasonably require, in each case, at no additional
cost to Assignor (other than de minimis fees), and so long as such further acts do not increase the obligations of Assignor or
diminish the rights of Assignor under the Loan Documents; and (g) shall deliver to Agent executed copies of all Leases required
to be delivered to Agent pursuant to the terms of the Credit Agreement.

 

    	K-3

     

    

 

THIS ASSIGNMENT is made
on the following terms, covenants and conditions:

 

1.          Present
Assignment. Assignor does hereby presently and unconditionally assign to Agent, Assignor’s right, title and interest
in and to any and all Leases and Rents, it being intended by Assignor that this Assignment constitutes a present assignment and
not an agreement to assign. Assignor agrees to execute and deliver to Agent such additional instruments, in form and substance
satisfactory to Agent, as may hereinafter be requested by Agent to further evidence and confirm said assignment. Such assignment
to Agent shall not be construed to bind Agent to the performance of any of the covenants, conditions, or provisions contained in
any of the Leases or otherwise to impose any obligation upon Agent. Agent is hereby granted and assigned by Assignor the right
to enter the Property for the purpose of enforcing its interest in the Leases and the Rents, this Assignment constituting a present
and unconditional assignment of the Leases and Rents. Assignor shall authorize and direct, and does hereby authorize and direct,
each and every present and future tenant, lessee and licensee under the Leases to pay all Rents directly to Agent upon receipt
of written demand from Agent. It is the intent of Assignor and Agent hereunder that the Rents hereby absolutely assigned are no
longer, during the term of this Assignment, property of Assignor or property of any estate of Assignor as defined by 11 U.S.C.
§ 541, and shall not constitute collateral, cash or otherwise, of Assignor. Notwithstanding the provisions of this Paragraph
1, so long as no Event of Default has occurred and is continuing, Assignor shall have the right to act as lessor under the Leases
to the extent not prohibited by the Credit Agreement.

 

2.          License.
Although this Assignment constitutes a present assignment of all Rents, so long as there shall exist no Event of Default under
the Instrument or the Credit Agreement, Assignor shall have a license (revocable upon the occurrence and during the continuance
of an Event of Default) to collect and receive the Rents as trustee for the benefit of Agent, and apply the Rents so collected
to the Secured Debt, to the extent then due and payable, then to the payment of normal and customary operating expenses for the
Property which are then due and payable, with the balance, so long as no Event of Default has occurred and is continuing, to the
account of Assignor. Upon the occurrence and during the continuance of any Event of Default, the license granted in this Paragraph
2 shall automatically, without further act by Agent, cease and terminate, and thereafter, any Rents received by Assignor shall
be held in trust for the benefit of, and shall be immediately remitted by Assignor to, Agent (provided, that if an Event of Default
is waived by Agent or cured by Assignor and accepted by Agent, Assignor’s license to collect such Rents shall automatically
be reinstated).

 

    	K-4

     

    

 

3.          Remedies
of Agent. If an Event of Default under the Instrument or the Credit Agreement shall have occurred and be continuing, Agent
may collect and receive all the Rents, including those past due as well as those accruing thereafter, and, Assignor hereby authorizes
Agent or Agent’s agents to collect the Rents and hereby directs such tenants, lessees and licensees of the Property to pay
the Rents to Agent or Agent’s agents. Assignor agrees that each and every tenant, lessee and licensee of the Property may
pay, and hereby irrevocably authorizes and directs each and every tenant, lessee and licensee of the Property to pay, the Rents
to Agent or Agent’s agents on Agent’s written demand therefor (which demand may be made by Agent only during the continuance
of an Event of Default) without any obligation on the part of said tenant, lessee or licensee to inquire as to the existence of
an Event of Default and notwithstanding any notice or claim of Assignor to the contrary, and Assignor agrees that Assignor shall
have no right or claim against said tenant, lessee or licensee for or by reason of any Rents paid to Agent following receipt of
such written demand. Anything in this Paragraph 3 to the contrary notwithstanding, Agent shall not be obligated to discharge or
perform the duties of a landlord, lessor or licensor to any tenant or other occupant or incur any liability as a result of the
exercise by Agent of its rights under this Assignment, and Agent shall be liable to account only for the rents, income, issues,
profits and revenues actually received by Agent. In connection with any action taken by the Agent pursuant to this Paragraph 3,
the Agent shall not be liable for any loss sustained by Assignor resulting from any act or omission of the Agent, including a loss
arising from the ordinary negligence of the Agent, unless such loss is caused by its own gross negligence or willful misconduct
of Agent as finally determined by a court of competent jurisdiction after the expiration of all applicable appeal periods, nor
shall the Agent be obligated to perform or discharge any obligation, duty or liability of Assignor. Assignor hereby assents to,
ratifies and confirms any and all actions of the Agent with respect to the Property taken under this Paragraph 3.

 

4.          No
Liability of Agent. After the occurrence and during the continuance of an Event of Default, the Agent is fully authorized to
receive and receipt for said Rents; to endorse and cash any and all checks and drafts payable to the order of Assignor or the Agent
for the account of Assignor received from or in connection with said Rents and apply the proceeds thereof to the payment of the
Secured Debt, when received, regardless of the maturity of the Loans or Hedge Obligations or any installment thereof; and to execute
transfer and division orders in the name of Assignor, or otherwise, with warranties binding Assignor. The Agent shall not be liable
for any delay, neglect, or failure to effect collection of any proceeds or to take any other action in connection therewith or
hereunder; but shall have the right, at its election, in the name of Assignor or otherwise, to prosecute and defend any and all
actions or legal proceedings deemed advisable by the Agent in order to collect such funds and to protect the interests of the Agent
and/or Assignor, with all costs, expenses and reasonable attorney’s fees incurred in connection therewith being paid by Assignor.

 

5.          Other
Remedies and Non-Waiver. No right, power or remedy conferred upon or reserved to Agent by this Assignment is intended to be
exclusive of any other right, power or remedy, but each and every such right, power and remedy shall be cumulative and concurrent
and shall be in addition to any other right, power and remedy given hereunder or now or hereafter existing at law or in equity
or by statute. No delay or omission of Agent or of any Lender to exercise any right, power or remedy accruing upon any default
shall exhaust or impair any such right, power or remedy or shall be construed to be a waiver of any such default, or acquiescence
therein; and every right, power and remedy given by this Assignment to Agent may be exercised from time to time and as often as
may be deemed expedient by Agent. No consent or waiver, expressed or implied, by Agent to or of any breach or default by Assignor
in the performance of the obligations thereof hereunder shall be deemed or construed to be a consent or waiver to or of any other
breach or default in the performance of the same or any other obligations of Assignor hereunder. Failure on the part of Agent to
complain of any act or failure to act or to declare an Event of Default under the Instrument, the Credit Agreement or the other
Loan Documents, irrespective of how long such failure continues, shall not constitute a waiver by Agent of its rights hereunder
or impair any rights, powers or remedies of Agent consequent on any breach or default by Assignor. Nothing contained in this Assignment
and no act done or omitted by Agent pursuant to the power and rights granted to Agent hereunder shall be deemed to be a waiver
by Agent of its rights and remedies under the other Loan Documents and this Assignment is made and accepted without prejudice to
any of the rights and remedies possessed by Agent under the terms thereof. The right of the Agent to collect the Rents and to enforce
any other security thereof held by it may be exercised by Agent either prior to, simultaneously with or subsequent to any action
taken by it hereunder.

 

    	K-5

     

    

 

6.          Conflict
with Credit Agreement and Instrument Provisions. Assignor hereby acknowledges and agrees that, in the event of any conflict
between the terms hereof and the terms of the Instrument or the Credit Agreement, the terms of the Instrument or the Credit Agreement
shall control; provided that if the Instrument or the Credit Agreement and this Assignment have a different standard or requirement
for a representation, warranty, covenant or other obligations, the Assignor will be required to comply with the higher standard
or more exacting requirement; further, provided that the inclusion in this Assignment of terms and provisions, supplemental rights
or remedies in favor of the Agent not addressed in the Instrument or the Credit Agreement shall not be deemed to be in conflict
with the Instrument or the Credit Agreement and all such additional terms, provisions, supplemental rights or remedies contained
herein shall be given full force and effect.

 

7.          No
Mortgagee in Possession. Nothing herein contained shall be construed as constituting Agent a “mortgagee in possession”
in the absence of the taking of actual possession of the Property by Agent. In the exercise of the powers herein granted to Agent,
no liability shall be asserted or enforced against Agent, all such liability being expressly waived and released by Assignor.

 

8.          No
Oral Change. This Assignment may not be modified, amended, waived, extended, changed, discharged or terminated orally, or by
any act or failure to act on the part of Assignor or Agent, but only by an agreement in writing signed by the party against whom
the enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought.

 

9.          Certain
Definitions. Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, words
used in this Assignment may be used interchangeable in singular or plural form and the word “Assignor” shall mean “Assignor
and any subsequent owner or owners of the Property or any part thereof or any interest therein,” the word “Agent”
shall mean “Agent and any subsequent beneficiary of the Instrument,” the word “Loans” shall have the meaning
set forth in the Credit Agreement, the word “person” shall include an individual, corporation, partnership, limited
liability company, trust, unincorporated association, government, governmental authority, and any other entity, the words “Property”
shall include any portion of the Property and any interest therein; whenever the context may require, any pronouns used herein
shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include
the plural and vice versa. All other capitalized terms used, but not defined herein, shall have the meaning set forth in the Credit
Agreement.

 

    	K-6

     

    

 

10.         Inapplicable
Provisions. If any term, covenant or condition of this Assignment is held to be invalid, illegal or unenforceable in any respect,
this Assignment shall be construed without such provision.

 

11.         Counterparts.
This Assignment may be executed in any number of counterparts each of which shall be deemed to be an original but all of which
when taken together shall constitute one agreement.

 

12.         GOVERNING
LAW; JURISDICTION. THIS ASSIGNMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS CHOSEN PURSUANT
TO SECTION 3.04 OF THE INSTRUMENT, WITHOUT GIVING EFFECT TO ITS PRINCIPLES OF CHOICE OF LAW OR CONFLICTS OF LAW (EXCEPT WITH RESPECT
TO CHOICE OF LAW OR CONFLICTS OF LAW PROVISIONS OF ITS UNIFORM COMMERCIAL CODE), AND THE LAWS OF THE UNITED STATES APPLICABLE TO
TRANSACTIONS IN THE STATE OF GEORGIA. ASSIGNOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY COURT OF COMPETENT JURISDICTION
LOCATED IN THE JURISDICTION CHOSEN PURSUANT TO SECTION 3.04 OF THE INSTRUMENT IN CONNECTION WITH ANY PROCEEDING ARISING OUT OF
OR RELATING TO THIS ASSIGNMENT.

 

13.         Successors
and Assigns. Assignor may not assign its rights under this Assignment except in accordance with the terms of the Credit Agreement
(including, without limitation, Section 5.4 of the Credit Agreement). Assignor hereby acknowledges and agrees that Agent may assign
this Assignment in accordance with the terms of the Credit Agreement. Subject to the foregoing, this Assignment shall be binding
upon, and shall inure to the benefit of, Assignor and the Agent and their respective successors and assigns.

 

14.         Termination
of Assignment. Upon payment in full of the Secured Debt and the termination of the obligation of the Lenders to make Loans
or issue Letters of Credit, and the delivery and recording of a satisfaction, release or discharge of the Instrument duly executed
by Agent, this Assignment shall become and be void and of no effect as to the Leases and Rents from the Land no longer securing
the Secured Debt.

 

    	K-7

     

    

 

15.         INDEMNIFICATION.
ASSIGNOR SHALL AND DOES HEREBY AGREE TO INDEMNIFY AND TO HOLD AGENT, THE LENDERS AND THE HOLDERS OF THE HEDGE OBLIGATIONS HARMLESS
FOR, FROM AND AGAINST ANY AND ALL REASONABLE COSTS, EXPENSES, CLAIMS, DEMANDS, LIABILITY, LOSS OR DAMAGE (INCLUDING ALL REASONABLE
COSTS, EXPENSES, AND ATTORNEYS’ FEES INCURRED IN THE DEFENSE THEREOF) ASSERTED AGAINST, IMPOSED ON OR INCURRED BY AGENT,
THE LENDERS OR HOLDERS OF THE HEDGE OBLIGATIONS IN CONNECTION WITH OR AS A RESULT OF THIS ASSIGNMENT OR THE EXERCISE OF ANY RIGHTS
OR REMEDIES UNDER THIS ASSIGNMENT OR UNDER ANY OF THE LEASES OR BY REASON OF ANY ALLEGED OBLIGATIONS OR UNDERTAKINGS OF AGENT,
THE LENDERS OR HOLDERS OF THE HEDGE OBLIGATIONS TO PERFORM OR DISCHARGE ANY OF THE TERMS, COVENANTS OR AGREEMENTS CONTAINED IN
ANY OF THE LEASES; PROVIDED, HOWEVER, THAT NOTHING HEREIN SHALL BE CONSTRUED TO OBLIGATE ASSIGNOR TO INDEMNIFY AND HOLD AGENT,
THE LENDERS OR A HOLDER OF A HEDGE OBLIGATION HARMLESS FOR, FROM AND AGAINST ANY AND ALL COSTS, EXPENSES, CLAIMS, DEMANDS, LIABILITY,
LOSS OR DAMAGE ASSERTED AGAINST, IMPOSED ON OR INCURRED BY AGENT, THE LENDERS OR A HOLDER OF A HEDGE OBLIGATION BY REASON OF SUCH
PERSONS’ WILLFUL MISCONDUCT OR GROSS NEGLIGENCE IF A JUDGMENT IS ENTERED AGAINST ANY OF AGENT, A LENDER OR A HOLDER OF A
HEDGE OBLIGATION BY A COURT OF COMPETENT JURISDICTION AFTER THE EXPIRATION OF ALL APPLICABLE APPEAL PERIODS. SHOULD AGENT, A LENDER
OR A HOLDER OF A HEDGE OBLIGATION INCUR ANY SUCH COSTS, EXPENSES, LIABILITIES, LOSS OR DAMAGE, OR IN THE DEFENSE OF ANY SUCH CLAIMS
OR DEMANDS, FOR WHICH IT IS TO BE INDEMNIFIED BY ASSIGNOR AS AFORESAID, THE AMOUNT THEREOF SHALL BE ADDED TO THE SECURED DEBT,
SHALL BEAR INTEREST AT THE DEFAULT RATE FROM THE DATE INCURRED UNTIL PAID (BUT IN NO EVENT SHALL THE INTEREST PAYABLE EXCEED THE
MAXIMUM AMOUNT ALLOWED BY LAW), SHALL BE SECURED BY THIS ASSIGNMENT, THE INSTRUMENT AND THE OTHER LOAN DOCUMENTS, AND SHALL BE
PAYABLE IMMEDIATELY UPON DEMAND.

 

16.         Notices.
Except for any statutory notice required prior to exercise of the remedies provided herein, which must be delivered in accordance
with such statutes, all notices, requests and other communications hereunder shall be made and delivered in the manner provided
in the Instrument.

 

17.         Rejection
of Leases. Upon the occurrence and during the continuance of an Event of Default, in the event a tenant, lessee or licensee
under any Lease should be the subject of any proceeding under the Federal Bankruptcy Act (Title 11 U.S.C.) or any other federal,
state, or local statute which provides for the possible termination or rejection of the Leases assigned hereby, the Assignor covenants
and agrees that if any of the Leases is so rejected, no settlement for damages shall be made without prior written and reasonable
consent of the Agent, and any check in payment of damages for rejection of such Lease will be made payable both to the Assignor
and Agent. Upon the occurrence and during the continuance of an Event of Default, the Assignor shall assign any such payment to
the Agent and further covenants and agrees that upon the request of the Agent, it will duly endorse to the order of the Agent any
check, the proceeds of which will be applied to whatever portion of the indebtedness secured hereby which the Agent may elect.

 

18.         No
Merger of Estates. So long as any of the indebtedness secured hereby and by the Loan Documents shall remain unpaid, unless
the Agent shall otherwise consent in writing, the fee title and the leasehold estate on the Property as hereinbefore described
shall not merge, but shall always be kept separate and distinct, notwithstanding the union of said estate either in the Assignor
or in any tenant, lessee or licensee or in a third party by purchase or otherwise.

 

    	K-8

     

    

 

19.         Agent’s
Rights of Assignment; Rights of Assignees. Agent may assign to any subsequent holder of the Note or the Instrument, or to any
person acquiring title to the Property, all of Agent’s right, title and interest in any of the Leases and rents, issues,
income and profits from the Property, in each case, in accordance with the terms of the Credit Agreement. No such assignee shall
have any liability for any obligation which accrued under any of the Leases prior to the assignment to such assignee nor shall
any such assignee have any obligation to account to Assignor for any rental payments which accrued prior to such assignment unless
actually received by such assignee. After Assignor’s right, title and interest in the Property has been foreclosed or otherwise
terminated, no assignee of Assignor’s interest in the Leases shall be liable to account to Assignor for any rents, issues,
income or profits thereafter accruing.

 

20.         Modifications,
Etc. Assignor hereby consents and agrees that Agent or any other Person may at any time and from time to time, without notice
to or further consent from Assignor, either with or without consideration, surrender any property or other security of any kind
or nature whatsoever held by it or by any person, firm or corporation on its behalf or for its account, securing the Secured Debt;
substitute for any collateral so held by it, other collateral of like kind; agree to modification of the terms of the Credit Agreement
or any of the other Loan Documents or agreements evidencing or relating to the Hedge Obligations (the “Hedge Documents”);
extend, renew or increase the Note, the Credit Agreement or any of the other Loan Documents or Hedge Documents for any period;
grant releases, compromises and indulgences with respect to the Notes, the Credit Agreement or any of the other Loan Documents
or Hedge Documents for any period; grant releases, compromises and indulgences with respect to the Note, the Credit Agreement or
any of the other Loan Documents or Hedge Documents to any persons or entities now or hereafter liable thereunder or hereunder;
release any co-borrower, guarantor or endorser of the Note, the Instrument, the Credit Agreement, or any other Loan Documents or
Hedge Documents; or take or fail to take any action of any type whatsoever; and no such action which Agent or any other Person
shall take or fail to take in connection with the Loan Documents or Hedge Documents, or any of them, or any security for the payment
of the Secured Debt or for the performance of any obligations or undertakings of Assignor or Borrower or any other Person, nor
any course of dealing with Assignor, Borrower or any other Person, shall release Assignor’s obligations hereunder, affect
this Assignment in any way or afford Assignor any recourse against Agent or any other Person. The provisions of this Assignment
shall extend and be applicable to all renewals, amendments, extensions, consolidations, increases and modifications of the Loan
Documents, the Hedge Documents and the Leases, and any and all references herein to the Loan Documents, the Hedge Documents or
the Leases shall be deemed to include any such renewals, amendments, extensions, consolidations, increases or modifications thereof.

 

THIS ASSIGNMENT shall
inure to the benefit of Agent and any subsequent beneficiary of the Instrument and shall be binding upon Assignor, and Assignor’s
heirs, executors, administrators, successors and assigns and any subsequent owner of the Property.

 

[Signatures Begin on
the Following Page]

 

    	K-9

     

    

 

Assignor has executed
this instrument under seal as of the day and year first above written.

 

	
        
	 	
        ASSIGNOR:

	Signed, sealed and delivered in the presence of:	 	________________________________________,  
	 	 	a ______________________________
		 	By:                                                                       
	                                                            	 	Name:                                                                   
	Unofficial Witness	 	 Title:                                                                      
	 	 	
	                                                            	 	(SEAL)
	Notary Public	 	 
	 	 	 
	Commission Expiration Date:	 	 
	 	 	 
	                                                            	 	 
	 	 	 
	[Notarial Seal]	 	 

 

[Signature Page
to Assignment of Leases and Rents]

 

    	K-10

     

    

 

exhibit
“a”

 

LEGAL
DESCRIPTION

 

    	K-11

     

    

 

EXHIBIT
L-1

 

FORM
OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Not Partnerships
For U.S. Federal Income Tax Purposes)

 

Reference is made to
that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) by and among Jernigan Capital Operating Company, LLC (the “Borrower”),
the financial institutions party thereto and their assignees under §18.1 thereof (the “Lenders”), KeyBank National
Association, as Agent (the “Agent”) and the other parties thereto.

 

Pursuant to the provisions
of §4.3 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the
Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a
bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the
meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described
in Section 881(c)(3)(C) of the Code.

 

The undersigned has
furnished the Agent and the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E. By executing
this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall
promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at all times furnished the Borrower and the Agent
with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	 	 
	 	[NAME OF LENDER]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date: ________ __, 20__

 

    	L-1

     

    

 

EXHIBIT
L-2

 

FORM
OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Not
Partnerships For U.S. Federal Income Tax Purposes)

 

Reference is made to
that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) by and among Jernigan Capital Operating Company, LLC (the “Borrower”),
the financial institutions party thereto and their assignees under §18.1 thereof (the “Lenders”), KeyBank National
Association, as Agent (the “Agent”) and the other parties thereto.

 

Pursuant to the provisions
of §4.3 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the
participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A)
of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code,
and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has
furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E. By executing
this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall
promptly so inform such Lender in writing, and (2) the undersigned shall have at all times furnished such Lender with a properly
completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned,
or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	 	 
	 	[NAME OF PARTICIPANT]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date: ________ __, 20__

 

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EXHIBIT
L-3

 

FORM
OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Participants That Are Partnerships
For U.S. Federal Income Tax Purposes)

 

Reference is made to
that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) by and among Jernigan Capital Operating Company, LLC (the “Borrower”),
the financial institutions party thereto and their assignees under §18.1 thereof (the “Lenders”), KeyBank National
Association, as Agent (the “Agent”) and the other parties thereto.

 

Pursuant to the provisions
of §4.3 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation
in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners
of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members
is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the
meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder
of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members
is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The undersigned has
furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by
an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio
interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate
changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender
with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to
the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	 	 
	 	[NAME OF PARTICIPANT]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date: ________ __, 20__

 

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EXHIBIT
L-4

 

FORM
OF U.S. TAX COMPLIANCE CERTIFICATE

 

(For Foreign Lenders That Are Partnerships
For U.S. Federal Income Tax Purposes)

 

Reference is made to
that certain First Amended and Restated Credit Agreement dated as of December 28, 2018 (as amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”) by and among Jernigan Capital Operating Company, LLC (the “Borrower”),
the financial institutions party thereto and their assignees under §18.1 thereof (the “Lenders”), KeyBank National
Association, as Agent (the “Agent”) and the other parties thereto.

 

Pursuant to the provisions
of §4.3 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as
well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect
partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect
to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course
of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members
is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct
or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of
the Code.

 

The undersigned has
furnished the Agent and the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by
an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial owners that is claiming the portfolio
interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate
changes, the undersigned shall promptly so inform the Borrower and the Agent, and (2) the undersigned shall have at all times furnished
the Borrower and the Agent with a properly completed and currently effective certificate in either the calendar year in which each
payment is to be made to the undersigned, or in either of the two calendar years preceding such payments.

 

Unless otherwise defined
herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.

 

	 	 
	 	[NAME OF LENDER]
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Date: ________ __, 20__

 

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EXHIBIT
M

 

Form
of Assignment OF HEDGE AGREEMENT

 

THIS ASSIGNMENT
OF HEDGE AGREEMENT (this “Assignment”), made as of the ______ day of __________________, 201_, by JERNIGAN CAPITAL
OPERATING COMPANY, LLC, a Delaware limited liability company (the “Assignor”), to KEYBANK NATIONAL ASSOCIATION,
a national banking association (“KeyBank”), as Agent for itself and each other lender (collectively, the “Lenders”)
which is or may hereafter become a party to the Credit Agreement (as hereinafter defined) (KeyBank, in its capacity as Agent, is
hereinafter referred to as “Agent”).

 

WITNESSETH:

 

WHEREAS, Assignor,
KeyBank, individually and as agent, and the other lenders which are now or hereafter a party thereto have entered into that certain
First Amended and Restated Credit Agreement dated as of December 28, 2018 (as the same may be varied, extended, supplemented, consolidated,
amended, replaced, increased, renewed or modified or restated, the “Credit Agreement”), pursuant to which the Lenders
have agreed to provide to Assignor a revolving credit loan facility as provided in the Credit Agreement; and

 

WHEREAS, the
Agent and the Lenders have required, in accordance with §7.20 of the Credit Agreement, that Assignor execute this Assignment
in order to secure the prompt and complete payment, as and when due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise), of all indebtedness, liabilities, duties, responsibilities and obligations, whether such indebtedness,
liabilities, duties, responsibilities and obligations are now existing or are hereafter created or arising, under the Credit Agreement,
the Notes and/or the other Loan Documents, including, without limitation, the payment, observance and performance of, among other
things, (a) the obligations of Assignor arising from this Assignment and the other Loan Documents to which it is a party, (b) all
other Obligations (including, in the case of each of clauses (a) and (b), any interest, fees and other charges in respect of the
Credit Agreement and the other Loan Documents that would accrue but for the filing of a petition initiating any bankruptcy, insolvency,
receivership or other similar case or proceeding under federal or state law, whether or not such interest, fees and other charges
accrue or are recoverable against Assignor after the filing of such petition for purposes of the Bankruptcy Code or are an allowed
claim in such proceeding), and (c) the Hedge Obligations (but excluding any Excluded Hedge Obligations), plus reasonable attorneys’
fees and expenses if the obligations represented under this Assignment, the Credit Agreement and the other Loan Documents are collected
by law, through an attorney-at-law, or under advice therefrom (all such indebtedness, liabilities, duties, responsibilities and
obligations being hereinafter referred to as the “Secured Obligations”);

 

NOW, THEREFORE,
for and in consideration of the sum of Ten and No/100 Dollars ($10.00), and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto do hereby covenant and agree as follows:

 

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1.            Definitions.
Capitalized terms used herein that are not otherwise defined herein shall have the meaning set forth in the Credit Agreement. In
addition, the following terms shall have the following meanings:

 

Collateral. See
Paragraph 2 hereof.

 

Counterparty.
Individually, any Person other than Assignor that is a party to the Hedge Agreement, and collectively all of such Persons.

 

Event of Default.
See Paragraph 7 hereof.

 

Hedge Agreement.
The [ISDA Master Agreement] dated as of ________, 201__ between Assignor and ________________, the Schedule attached thereto
and the confirmation of interest rate swap, dated on or near the date thereof, from _________________ to Assignor.

 

Secured Obligations.
See the Recitals.

 

2.            Grant
of Security Interest. As security for the Secured Obligations, Assignor does hereby transfer, assign, pledge, convey and grant
to Agent, and does hereby grant a security interest to Agent in, all of Assignor’s right, title and interest in and to the
following:

 

(a)          All
right, title, interest, claims or rights of Assignor now or hereafter in or to the Hedge Agreement; and

 

(b)          Any
and all profits, proceeds, accounts, income, distributions and payments of any kind or nature whatsoever, in each case now or hereafter
distributable or payable to Assignor pursuant to or by reason of the Hedge Agreement, and all claims, choses in action, or things
in action or rights as a creditor now or hereafter arising against Counterparty; and

 

(c)          All
accounts, contract rights, security entitlements, securities accounts, investment property and general intangibles now or hereafter
evidencing, arising from or relating to any of the foregoing; and

 

(d)          All
notes or other documents or instruments now or hereafter evidencing or securing any of the foregoing; and

 

(e)          All
right of Assignor to collect and enforce payments distributable or payable to Assignor pursuant to the terms of the Hedge Agreement;
and

 

(f)          All
documents, writings, books, files, records, computer tapes, programs, ledger books and ledger pages arising from or used in connection
with any of the foregoing; and

 

(g)          All
renewals, extensions, additions, substitutions or replacements of any of the foregoing; and

 

(h)          All
powers, options, rights, privileges and immunities pertaining to any of the foregoing; and

 

(i)          All
products and proceeds of any of the foregoing and all cash, security or other property distributed on account of, or in exchange
or substitution of, any of the foregoing.

 

(j)          All
of the foregoing described in this Paragraph 2 are hereinafter referred to collectively as the “Collateral.”

 

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3.            Obligations
Secured. This Assignment is made by Assignor and the security interest in the Collateral is granted by Assignor to secure the
payment and performance by Assignor of the Secured Obligations.

 

4.            Collection
of Collateral.

 

(a)          It
is acknowledged and agreed by the parties hereto that Agent shall have sole and exclusive possession of the Collateral and that
this Assignment constitutes a present, absolute and current assignment of all the Collateral and is effective upon the execution
and delivery hereof. Payments under or with respect to the Collateral shall be made as follows:

 

(i)          Assignor
shall not have any right to receive any Collateral, and all such payments shall be delivered directly by the Counterparty to Agent
for application by Agent in satisfaction of the Secured Obligations in accordance with the Loan Documents.

 

(ii)         If
Assignor shall receive any Collateral, Assignor shall hold all such payments in trust for Agent, will not commingle such payments
with other funds of Assignor, and will immediately pay and deliver in kind, all such payments directly to Agent (with such endorsements
and assignments as may be necessary to transfer title to Agent) for application by Agent in satisfaction of the Secured Obligations
in accordance with the Loan Documents.

 

(iii)        Assignor
hereby agrees for the benefit of Counterparty that all payments actually received by Agent hereunder or pursuant hereto shall be
deemed payments to Assignor by Counterparty. Agent shall apply any and all such payments actually received by Agent in satisfaction
of the Secured Obligations in accordance with the Loan Documents.

 

(iv)        In
furtherance of the foregoing, Assignor does hereby notify and direct Counterparty that all payments under or with respect to the
Collateral shall be made directly to Agent at the address of Agent set forth in the Credit Agreement.

 

(b)          Effective
only upon the occurrence and during the continuance of an Event of Default, Assignor hereby irrevocably designates and appoints
Agent its true and lawful attorney-in-fact, which appointment is coupled with an interest and is irrevocable, either in the name
of Agent, or in the name of Assignor, at Assignor’s sole cost and expense, and to take any or all of the following actions:

 

(i)          to
ask, demand, sue for, attach, levy, settle, compromise, collect, compound, recover, receive and give receipt and acquittances for
any and all Collateral and to take any and all actions as Agent may deem necessary or desirable in order to realize upon the Collateral,
or any portion thereof, including, without limitation, making any statements and doing and taking any actions on behalf of Assignor
which are otherwise required of Assignor under the terms of any agreement as conditions precedent to the payment of the Collateral,
and the right and power to receive, endorse, assign and deliver, in the name of Assignor, any checks, notes, drafts, instruments
or other evidences of payment received in payment of or on account of all or any portion of the Collateral, and Assignor hereby
waives presentment, demand, protest and notice of demand, protest and non-payment of any instrument so endorsed; and

 

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(ii)         to
institute one or more actions against Counterparty in connection with the collection of the Collateral, to prosecute to judgment,
settle or dismiss any such actions, and to make any compromise or settlement deemed desirable, in Agent’s sole and absolute
discretion, with respect to such Collateral, to extend the time of payment, arrange for payment in installments or otherwise modify
the terms of the Hedge Agreement or release Counterparty from its obligations to make such payments, without incurring responsibility
to, or affecting any liability of, Assignor under the Hedge Agreement;

 

it being specifically understood and agreed,
however, that Agent shall not be obligated in any manner whatsoever to give any notices of default (except as may be specifically
required herein or in the Credit Agreement) or to exercise any such power or authority or be in any way responsible for the preservation,
maintenance, collection of or realizing upon the Collateral, or any portion thereof, or any of Assignor’s rights therein.
The foregoing appointment is irrevocable and continuing and any such rights, powers and privileges shall be exclusive in Agent,
its successors and assigns until this Assignment terminates as provided in Paragraph 13, below.

 

(c)          Notwithstanding
anything contained in this Paragraph 4 to the contrary, provided no Event of Default has occurred and is continuing or would occur
as a result thereof, Assignor shall have a license (revocable upon the occurrence of and during the continuance of an Event of
Default) to receive and retain the Collateral attributable to payments made to Assignor by Counterparty.

 

5.            Warranties
and Covenants. Assignor does hereby warrant and represent to, and covenants and agrees with, Agent as follows:

 

(a)          Power
and Authority. Assignor has, and shall maintain throughout the term of this Assignment, all necessary power, authority and
legal right to execute and deliver this Assignment, to own and grant a security interest in the Collateral, to assign to Agent
the security interest granted hereby.

 

(b)          Performance.
All duties, obligations and responsibilities required to be performed by Assignor as of the date hereof under the Hedge Agreement
have been performed, and no default or condition which with the passage of time or the giving of notice, or both, would constitute
a default exists under the Hedge Agreement.

 

(c)          Hedge
Agreement. Except for the Loan Documents, Assignor is not a party to, nor is Assignor bound by or subject to, any indenture,
contract or other agreement which purports to prohibit, restrict, limit, or control the transfer or pledge of the Collateral. The
Hedge Agreement has been duly authorized, executed and delivered by Assignor and is in full force and effect. Assignor has paid
to Counterparty all fees or other amounts at any time payable with respect to the Hedge Agreement. A true, correct and complete
copy of the Hedge Agreement, together with any amendments thereto, is attached hereto as Exhibit “A” and made a part
hereof, and there are no other agreements or understandings which modify, alter or supplement the terms thereof. At any time while
an Event of Default exists, Assignor shall not modify, amend, cancel, release, surrender, terminate or permit the modification,
amendment, cancellation, release, surrender, termination of, the Hedge Agreement, or cause or permit the occurrence of a “Termination
Event” (as such term is defined in the Hedge Agreement), without the prior written consent of Agent.

 

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(d)          Title.
Assignor is and shall remain the sole, lawful, beneficial and record owner of the Collateral, free and clear of all liens, restrictions,
claims, pledges, encumbrances, charges or rights of third parties and rights of set-off or recoupment whatsoever (other than those
in favor of Agent hereunder), and Assignor has the full and complete right, power and authority to create a security interest in
the Collateral in favor of Agent, in accordance with the terms and provisions of this Assignment. No Person has any option, right
of first refusal, right of first offer or other right to acquire all or any portion of the Collateral.

 

(e)          Priority.
This Assignment, together with the UCC financing statements, creates a valid and binding first priority security interest in the
Collateral securing the payment and performance of the Secured Obligations, and all filings and other actions necessary to perfect
and protect such security interests have been duly made and taken. Assignor has not performed, and Assignor will not perform or,
to the extent Assignor has the legal right, whether by contract, at law or in equity, to prevent such action, permit any other
Person to perform, any acts which might prevent Agent from enforcing any of the terms and conditions of this Assignment or which
would limit Agent in any such enforcement.

 

(f)          Note.
All original notes and other documents or instruments (if any) evidencing, constituting, guaranteeing or securing any of the Collateral
or any right to receive the Collateral have been endorsed to and delivered to Agent.

 

(g)          Perfection
of Security Interest.

 

(i)          (1)
Assignor’s correct legal name (including, without limitation, punctuation and spacing) indicated on the public record of
Assignor’s jurisdiction, mailing address, identity or corporate structure, principal residence or chief executive office,
jurisdiction of organization, organizational identification number, and federal tax identification number, are as set forth on
Schedule 1 attached hereto and by this reference made a part hereof, (2) Assignor has been using or operating under said
name and identity or corporate structure without change for the time period set forth on Schedule 1 attached hereto and
(3) in order to perfect the pledge and security interests granted herein against Assignor, a UCC Financing Statement must be filed
with the Secretary of State of the State of Delaware. Assignor covenants and agrees that Assignor shall not change any of the matters
addressed by clauses (1), (2) and (3) of this paragraph unless it has given Agent thirty (30) days prior written notice of any
such change and caused to be filed at the request of Agent or authorized the Agent or Agent’s counsel to file such additional
financing statements or other instruments to be filed in such jurisdictions as Agent may deem necessary or advisable in its sole
discretion to prevent any filed financing statement from becoming misleading or losing its perfected status.

 

(ii)         Assignor
agrees to do such further acts and things, and to execute and deliver such additional conveyances, assignments, agreements, documents,
endorsements, assurances and instruments as Agent may at any time reasonably request in connection with the administration or enforcement
of this Assignment or related to the Collateral or any part thereof or in order to better assure and confirm unto Agent its rights,
powers and remedies hereunder. Without limiting the generality of the foregoing, at any time and from time to time, Assignor shall,
at the reasonable request of Agent, make, execute, acknowledge, and deliver or authorize the execution and delivery of and where
appropriate, cause to be recorded and/or filed and from time to time thereafter to be re-recorded and/or refiled at such time in
such offices and places as shall be deemed desirable by Agent all such other and further assignments, security agreements, financing
statements, continuation statements, endorsements, assurances, certificates and other documents as Agent from time to time may
reasonably require for the better assuring, conveying, assigning and confirming to Agent the Collateral and the rights hereby conveyed
or assigned or intended now or hereafter to be conveyed or assigned, and for carrying out the intention or facilitating the performance
of the terms of this Assignment. Upon any failure of Assignor to do so, Agent may make, execute, record, file, rerecord and/or
refile, acknowledge and deliver any and all such further assignments, security agreements, financing statements, continuation statements,
endorsements, assurances, instruments, certificates and documents for and in the name of Assignor, and Assignor hereby irrevocably
appoints Agent the agent and attorney-in-fact coupled with an interest with full power of substitutions of Assignor so to do. This
power is coupled with an interest and is irrevocable. Without limiting the generality of the foregoing, Assignor will obtain such
acknowledgments, waivers of lien, estoppel certificates or subordination agreements as Agent may require to insure the priority
of its security interest in the Collateral.

 

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(iii)        Schedule
1 correctly sets forth all names and tradenames that Assignor has used within the last five years, and also correctly sets
forth the locations of all of the chief executive offices of Assignor over the last five years.

 

(iv)        Assignor
shall, at any time and from time to time, take such steps as Agent may reasonably request for Agent (1) to obtain an acknowledgment,
in form and substance reasonably satisfactory to Agent, of any bailee having possession of any of the Collateral, stating that
the bailee holds possession of such Collateral on behalf of Agent, (2) to obtain “control” of any investment property,
deposit accounts, letter-of-credit rights, or electronic chattel paper (as such terms are defined by the Uniform Commercial Code
as enacted in the State of New York (the “UCC”) with corresponding provisions thereof defining what constitutes “control”
for such items of collateral) in each case in which such items are included as Collateral, with any agreements establishing control
to be in form and substance reasonably satisfactory to Agent, and (3) otherwise to insure the continued perfection and priority
of the Agent’s security interest in any of the Collateral and of the preservation of its rights therein. If Assignor shall
at any time acquire a “commercial tort claim” (as such term is defined in the UCC) with respect to the Collateral or
any portion thereof, Assignor shall promptly notify Agent thereof in writing, providing a reasonable description and summary thereof,
and shall execute a supplement to this Assignment in form and substance acceptable to Agent granting a security interest in such
commercial tort claim to Agent.

 

(v)         Assignor
hereby authorizes Agent, its counsel or its representative, at any time and from time to time, at Assignor’s expense, to
file financing statements, amendments and continuations that describe or relate to the Collateral or any portion thereof in such
jurisdictions as Agent may deem necessary or desirable in order to perfect the security interests granted by Assignor under this
Assignment, and such financing statements may contain, among other items as Agent may deem advisable to include therein, the federal
tax identification number and organizational number of Assignor.

 

(h)          No
Suits or Proceedings. There are no material actions, suits or proceedings pending or, to the knowledge of Assignor, threatened
against or affecting the Collateral, or involving the validity or enforceability of this Assignment or the priority of the lien
thereof, at law or in equity, or before any governmental or administrative agency.

 

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6.            General
Covenants. Assignor covenants and agrees that, so long as this Assignment is continuing:

 

(a)          No
Further Encumbrance. Assignor shall not, without the prior written consent of Agent, which consent may be withheld by Agent
in its sole and absolute discretion, directly, indirectly or by operation of law, sell, transfer, assign, dispose of, pledge, convey,
option, mortgage, hypothecate or encumber any of the Collateral.

 

(b)          Defense
of Collateral. Assignor shall at all times defend the Collateral against all claims and demands of all persons at any time
claiming any interest in the Collateral adverse to Agent’s interest in the Collateral as granted hereunder.

 

(c)          Performance
of Duties. Assignor shall perform all of its duties, responsibilities and obligations under the Hedge Agreement and with respect
to the Collateral shall diligently and in good faith protect the value of the Collateral.

 

(d)          Payment
of Taxes. Assignor shall pay all taxes and other charges against the Collateral, shall not use the Collateral illegally, and
shall not suffer to exist any loss, theft, damage or destruction of the Collateral and shall not suffer to exist any levy, seizure
or attachment of the Collateral.

 

(e)          Enforcement
of Hedge Agreement. Assignor, promptly upon the request of Agent, shall promptly take such actions as Agent may reasonably
require to enforce or cause to be enforced the terms of the Hedge Agreement or any other contract, agreement or instrument included
in, giving rise to, creating, establishing, evidencing or relating to the Collateral or to collect or enforce any claim for payment
or other right or privilege assigned to Agent hereunder.

 

(f)          [Intentionally
Omitted].

 

(g)          Location
of Records. Except for those items of the Collateral that are delivered to Agent as provided herein, all original records of
Assignor relative to the Collateral are and will be kept at the office of Assignor located in Davidson County, Nashville, Tennessee.
Assignor shall give Agent not fewer than thirty (30) days prior written notice of any proposed change in the name of Assignor and
any proposed change in the location of the Collateral or of such records, and Assignor will not, without the prior written consent
of Agent, move the Collateral or such records to a location outside of Davidson County, Nashville, Tennessee, or keep duplicate
records with respect to the Collateral at any address outside such county.

 

(h)          Evidence
of Indebtedness. If any amounts are due from Counterparty to Assignor, including, without limitation, any amounts in respect
of Collateral payable to Assignor in the future and the obligation to pay or repay such amount is to be evidenced by a separate
document or instrument, then as evidence of such obligations, Assignor shall (i) cause Counterparty to issue Assignor a promissory
note bearing the legend attached hereto as Exhibit “B”, which note shall provide that all payments due under such
promissory note are to be paid directly to Agent as required by, and applied as provided in, this Assignment or the Loan Documents
until the Secured Obligations are paid in full or this Assignment is otherwise terminated as provided herein (and Agent may hold
such sums as additional collateral for Secured Obligations not yet due and payable), or (ii) execute or cause to be executed
such documents, instruments or agreements as Agent may reasonably require in order to ensure that such payments are to be paid
directly to Agent as required by this Assignment. No other evidence of such obligations shall be executed by Counterparty to Assignor.

 

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(i)          Delivery
of Notes. Assignor shall promptly deliver to Agent any note or other document or instrument entered into after the date hereof
which evidences, constitutes, guarantees or secures any of the Collateral or any right to receive Collateral, which notes or other
documents and instruments shall be accompanied by such endorsements or assignments as Agent may require to transfer title to Agent.

 

(j)          Assignor
Remains Liable. Anything herein to the contrary notwithstanding, (i)Assignor shall remain liable under the Hedge Agreement
and all other contracts, agreements and instruments included in, giving rise to, creating, establishing, evidencing or relating
to the Collateral to the extent set forth therein to perform all of its duties and obligations (including, without limitation,
the making of any payment to Counterparty) to the same extent as if this Assignment had not been executed, (ii) the exercise by
Agent of any of its rights hereunder shall not release Assignor from any of its duties or obligations under the Hedge Agreement,
or any such contracts, agreements and instruments, and (iii) neither Agent nor any of the Lenders shall have any obligation or
liability under the Hedge Agreement or any such contract, agreement or instrument by reason of this Assignment, and Agent shall
not be obligated to perform any of the obligations or duties of Assignor thereunder or to take any action to collect or enforce
any claim for payment or other right or privilege assigned to Agent hereunder.

 

(k)          Notices
of Default. So long as this Assignment shall remain in effect, Assignor shall, immediately upon receipt, forward to Agent duplicate
copies of any and all notices of default or other events permitting the acceleration or early termination of the Hedge Agreement,
or of any other failure by Assignor to perform any obligation under the Hedge Agreement.

 

7.            Events
of Default. An Event of Default shall exist hereunder upon the occurrence and continuance of any of the following:

 

(a)          Assignor
shall fail to duly and fully comply with any covenant, condition or agreement in Paragraphs 5(d), 6(a), 6(h) or 6(i) of this Assignment;
or

 

(b)          Assignor
shall fail to, or Assignor shall fail to cause any other Person to, duly and fully comply with any other covenant, condition or
agreement of this Assignment (other than those specified in this Paragraph 7 or any default excluded from any provision of a grace
period or cure of defaults contained in any other of the Loan Documents), and such failure is not cured in the applicable time
period provided in the Credit Agreement;

 

(c)          The
occurrence and continuance of an Event of Default under any of the other Loan Documents;

 

(d)          [reserved];
or

 

(e)          Any
termination of a financing statement with respect to the Collateral naming Assignor as a debtor and Agent as secured party, or,
except as otherwise filed by Agent as provided in Paragraph 5(g)(ii) of this Assignment, any amendment or correction statement
with respect thereto, is filed in any jurisdiction by, or such filing is caused by, or at the instance of, Assignor or is filed
by, or such filing is caused by, or at the instance of, any principal, member, partner, shareholder or officer of Assignor.

 

    	M-8

     

    

 

8.            Remedies.

 

(a)          Upon
the occurrence of any Event of Default, Agent may take any action deemed by Agent to be necessary or appropriate to the enforcement
of the rights and remedies of Agent under this Assignment and the Loan Documents, including, without limitation, the exercise of
its rights and remedies with respect to any or all of the Collateral. The remedies of Agent shall include, without limitation,
all rights and remedies specified in the Loan Documents and this Assignment, all remedies of Agent under applicable general or
statutory law, and the remedies of a secured party under the UCC and regardless of whether the UCC has been enacted or enacted
in that form in any other jurisdiction in which such right or remedy is asserted. In addition to such other remedies as may exist
from time to time, whether by way of set off, banker’s lien, consensual security interest or otherwise, upon the occurrence
of an Event of Default, Agent is authorized at any time and from time to time, without notice to or demand upon Assignor (any such
notice or demand being expressly waived by Assignor) to charge any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by Agent to or for the credit of or the account of Assignor
against any and all of the Secured Obligations, irrespective of whether or not Agent shall have made any demand for payment and
although such Secured Obligations may be unmatured. Any notice required by law, including, but not limited to, notice of the intended
disposition of all or any portion of the Collateral, shall be reasonable and properly given if given in the manner prescribed for
the giving of notice herein, and, in the case of any notice of disposition, if given at least ten (10) days prior to such disposition.
Agent may require Assignor to assemble the Collateral and make it available to Agent at any place to be designated by Agent which
is reasonably convenient to both parties. It is expressly understood and agreed that Agent shall be entitled to dispose of the
Collateral at any public or private sale or sales, without recourse to judicial proceedings and without either demand, appraisement,
advertisement or notice (except such notice as is otherwise required under this Assignment) of any kind, all of which are expressly
waived, and that Agent shall be entitled to bid and purchase at any such sale. In the event that Agent is the successful bidder
at any public or private sale of any note or other document or instrument evidencing Assignor’s right to receive the Collateral,
Agent shall be entitled to credit the amount bid by Agent against the obligations evidenced by such note, document or instrument
rather than the Secured Obligations. To the extent the Collateral consists of marketable securities, Agent shall not be obligated
to sell such securities for the highest price obtainable, but shall sell them at the market price available on the date of sale.
Agent shall not be obligated to make any sale of the Collateral if it shall determine not to do so regardless of the fact that
notice of sale of the Collateral may have been given. Agent may, without notice or publication, adjourn any public sale from time
to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and
place to which the same was so adjourned. Each such purchaser at any such sale shall hold the Collateral sold absolutely free from
claim or right on the part of Assignor. In the event that any consent, approval or authorization of any governmental agency or
commission will be necessary to effectuate any such sale or sales, Assignor shall execute all such applications or other instruments
as Agent may deem reasonably necessary to obtain such consent, approval or authorization. Agent may notify any account debtor or
obligor with respect to the Collateral to make payment directly to Agent, and may demand, collect, receipt for, settle, compromise,
adjust, sue for, foreclose or realize upon the Collateral as Agent may determine whether or not the Secured Obligations or the
Collateral are due, and for the purpose of realizing Agent’s rights therein, Agent may receive, open and dispose of mail
addressed to Assignor and endorse notes, checks, drafts, money orders, documents of title or other evidences of payment, shipment
or storage of any form of Collateral on behalf and in the name of Assignor, as its attorney-in-fact. In addition, upon the occurrence
and during the continuance of an Event of Default, Assignor hereby irrevocably designates and appoints Agent its true and lawful
attorney-in-fact either in the name of Agent or Assignor to (i) sign Assignor’s name on any Collateral, drafts against
account debtors, assignments, any proof of claim in any bankruptcy or other insolvency proceeding involving any account debtor,
any notice of lien, claim of lien or assignment or satisfaction of lien, or on any financing statement or continuation statement
under the UCC; (ii) send verifications of accounts receivable to any account debtor; and (iii) in connection with a transfer of
the Collateral as described above, sign in Assignor’s name any documents necessary to transfer title to the Collateral to
Agent or any third party. All acts of said attorney-in-fact are hereby ratified and approved, and Agent shall not be liable for
any mistake of law or fact made in connection therewith. This power of attorney is coupled with an interest and shall be irrevocable
so long as any amounts remain unpaid on any of the Secured Obligations. All remedies of Agent shall be cumulative to the full extent
provided by law, all without liability except to account for property actually received, but the Agent shall have no duty to exercise
such rights and shall not be responsible for any failure to do so or delay in so doing. Pursuit by Agent of certain judicial or
other remedies shall not abate nor bar other remedies with respect to the Secured Obligations or to other portions of the Collateral.
Agent may exercise its rights to the Collateral without resorting or regard to other collateral or sources of security or reimbursement
for the Secured Obligations.

 

    	M-9

     

    

 

(b)          If
Assignor fails to perform any agreement or covenant contained in this Assignment beyond any applicable period for notice and cure,
Agent may itself perform, or cause to be performed, any agreement or covenant of Assignor contained in this Assignment which Assignor
shall fail to perform, and the cost of such performance, together with any reasonable expenses, including reasonable attorneys’
fees actually incurred (including reasonable attorneys’ fees incurred in any appeal) by Agent in connection therewith, shall
be payable by Assignor within ten (10) days of written demand therefor and shall constitute a part of the Secured Obligations
and, if not paid within such ten (10) days of written demand, shall bear interest at the Default Rate until paid.

 

(c)          Whether
or not an Event of Default has occurred and whether or not Agent is the absolute owner of the Collateral, Agent may take such action
as Agent may deem necessary to protect the Collateral or its security interest therein, Agent being hereby authorized to pay, purchase,
contest and compromise any encumbrance, charge or lien which in the reasonable judgment of Agent is prior or superior to its security
interest, and in exercising any such powers and authority to pay necessary out-of-pocket expenses, employ counsel and pay reasonable
attorney’s fees. Any such advances made or expenses incurred by Agent shall be deemed advanced under this Assignment, shall
increase the indebtedness evidenced and secured hereby, shall be payable within ten (10) days of written demand therefor and, if
not paid within such ten (10) days of written demand, shall bear interest at the Default Rate until paid.

 

(d)          Notwithstanding
anything in this Assignment or any other Loan Document to the contrary, any reference in this Assignment or any other Loan Document
to “the continuance of a default” or “the continuance of an Event of Default” or any similar phrase shall
not create or be deemed to create any right of Assignor or any other party to cure any default following the expiration of any
applicable grace or notice and cure period.

 

    	M-10

     

    

 

9.           Duties
of Agent. The powers conferred on Agent hereunder are solely to protect its interest in the Collateral and shall not impose
any duty upon it to exercise any such powers. Agent’s duty with reference to the Collateral shall be solely to use slight
care in the custody and preservation of the Collateral, which shall not include any steps necessary to preserve rights against
prior parties. Agent shall have no responsibility or liability for the collection of any Collateral or by reason of any invalidity,
lack of value or uncollectability of any of the payments received by it.

 

10.          Indemnification.

 

(a)          It
is specifically understood and agreed that this Assignment shall not operate to place any responsibility or obligation whatsoever
upon Agent or the Lenders pursuant to the Hedge Agreement, and that in accepting this Assignment, Agent and the Lenders neither
assume nor agree to perform at any time whatsoever any obligation or duty of Assignor relating to the Collateral or under the Hedge
Agreement, all of which obligations and duties shall be and remain with and upon Assignor.

 

(b)          Assignor
agrees to indemnify, defend and hold the Agent and the Lenders harmless from and against any and all claims, expenses, losses and
liabilities growing out of or resulting from this Assignment (including, without limitation, enforcement of this Assignment) or
acts taken or omitted to be taken by the Agent or the Lenders hereunder or in connection therewith, except claims, expenses, losses
or liabilities resulting from the Agent’s or such Lender’s gross negligence or willful misconduct as finally determined
by a court of competent jurisdiction after the expiration of all applicable appeal periods.

 

(c)          Assignor,
within ten (10) days of written demand shall pay to the Agent the amount of any and all reasonable out-of-pocket expenses, including,
without limitation, the reasonable fees and disbursements of counsel actually incurred (including those incurred in any appeal),
and of any experts and agents, which the Agent may incur in connection with (i) the administration of this Assignment, (ii) the
sale of, collection from, or other realization upon, any of the Collateral, (iii) the exercise or enforcement of any of the rights
of the Agent hereunder, or (iv) the failure by Assignor to perform or observe any of the provisions hereof.

 

11.           Security
Interest Absolute. All rights of Agent, and the security interests hereunder, and all of the obligations secured hereby, shall
be absolute and unconditional, irrespective of:

 

(a)          Any
lack of validity or enforceability of the Loan Documents or any other agreement or instrument relating thereto;

 

(b)          Any
change in the time (including the extension of the maturity date of the Note), manner or place of payment of, or in any other term
of, all or any of the Secured Obligations or any other amendment or waiver of or any consent to any departure from this Assignment
or the Loan Documents;

 

    	M-11

     

    

 

(c)          Any
exchange, release or nonperfection of any other collateral for the Secured Obligations, or any release or amendment or waiver of
or consent to departure from the Loan Documents with respect to all or any part of the Secured Obligations; or

 

(d)          Any
other circumstance (other than payment of the Secured Obligations in full) that might otherwise constitute a defense available
to, or a discharge of, Assignor or any third party for the Secured Obligations or any part thereof.

 

12.           Amendments
and Waivers. No amendment or waiver of any provision of this Assignment nor consent to any departure therefrom shall in any
event be effective unless the same shall be in writing and signed by Agent and Assignor, and then such waiver or consent shall
be effective only in the specific instance and for the specific purpose for which given. No delay or omission of Agent to exercise
any right, power or remedy accruing upon any Event of Default shall exhaust or impair any such right, power or remedy or shall
be construed to be a waiver of any such Event of Default, or acquiescence therein; and every right, power and remedy given by this
Assignment to Agent may be exercised from time to time and as often as may be deemed expedient by Agent. Failure on the part of
Agent to complain of any act or failure to act which constitutes an Event of Default, irrespective of how long such failure continues,
shall not constitute a waiver by Agent of Agent’s rights hereunder or impair any rights, powers or remedies consequent on
any Event of Default. To the fullest extent permitted by law, Assignor hereby waives to the extent permitted by law all rights
which Assignor has or may have under and by virtue of the UCC, and any federal, state, county or municipal statute, regulation,
ordinance, Constitution or charter, now or hereafter existing, similar in effect thereto, providing any right of Assignor to notice
and to a judicial hearing prior to seizure by Agent of any of the Collateral. Assignor hereby waives and renounces for itself,
its heirs, successors and assigns, presentment, demand, protest, advertisement or notice of any kind (except for any notice required
by law or the Loan Documents) and all rights to the benefits of any statute of limitations and any moratorium, reinstatement, marshaling,
forbearance, valuation, stay, extension, homestead, redemption and appraisement now provided or which may hereafter be provided
by the Constitution and laws of the United States and of any state thereof, both as to itself and in and to all of its property,
real and personal, against the enforcement of this Assignment and the collection of any of the Secured Obligations.

 

13.           Continuing
Security Interest; Release of Collateral. This Assignment shall create a continuing security interest in the Collateral and
shall (a) remain in full force and effect until the indefeasible payment in full in cash of the Secured Obligations and the
termination of the obligation of the Lenders to provide further advances under the Credit Agreement, (b) be binding upon Assignor
and its permitted successors and assigns, and (c) inure, together with the rights and remedies of Agent hereunder, to the
benefit of Agent and the Lenders and their respective successors, transferees and assigns. Upon the indefeasible payment in full
in cash of the Secured Obligations and the termination of the obligation of the Lenders to provide further advances under the Credit
Agreement and issue Letters of Credit, the security interest granted hereby shall terminate and all rights to the Collateral shall
revert to Assignor. Upon any such termination, Agent will at Assignor’s expense execute and deliver to Assignor such documents
as Assignor shall reasonably request to evidence such termination.

 

    	M-12

     

    

 

14.           Modifications,
Etc. Assignor hereby consents and agrees that Agent may at any time and from time to time, without notice to or further consent
from Assignor, either with or without consideration, surrender any property or other security of any kind or nature whatsoever
held by it or by any person, firm or corporation on its behalf or for its account, securing the Secured Obligations; substitute
for any Collateral so held by it, other collateral of like kind; agree to modification of the terms of the Loan Documents; extend
or renew the Loan Documents for any period; grant releases, compromises and indulgences with respect to the Loan Documents for
any period or to any persons or entities now or hereafter liable thereunder or hereunder; release any guarantor, endorser or any
other Person liable with respect to the Secured Obligations; or take or fail to take any action of any type whatsoever; and no
such action which Agent shall take or fail to take in connection with the Loan Documents, or any of them, or any security for the
payment of the Secured Obligations or for the performance of any obligations or undertakings of Assignor, nor any course of dealing
with Assignor or any other person, shall release Assignor’s obligations hereunder, affect this Assignment in any way or afford
Assignor any recourse against Agent.

 

15.          [Intentionally
omitted].

 

16.           Governing
Law; Terms. THIS AGREEMENT SHALL, PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

17.           Notices.
Each notice, demand, election or request provided for or permitted to be given pursuant to this Assignment shall be deemed to have
been properly given or served if given to Assignor in the manner provided in the Credit Agreement.

 

18.           No
Unwritten Agreements. THE WRITTEN LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED
BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
THE PARTIES.

 

19.           Counterparts.
This Assignment and any amendment hereof may be executed in several counterparts and by each party on a separate counterpart, each
of which when so executed and delivered shall be an original, and all of which together shall constitute one instrument. In proving
this Assignment it shall not be necessary to produce or account for more than one such counterpart signed by the party against
whom enforcement is sought.

 

20.          Miscellaneous.
Time is of the essence of this Assignment. Title or captions of paragraphs hereof are for convenience only and neither limit nor
amplify the provisions hereof. References to a particular paragraph refer to that paragraph of this Assignment unless otherwise
indicated. If, for any circumstances whatsoever, fulfillment of any provision of this Assignment shall involve transcending the
limit of validity presently prescribed by applicable law, the obligation to be fulfilled shall be reduced to the limit of such
validity; and if any clause or provision herein operates or would prospectively operate to invalidate this Assignment, in whole
or in part, then such clause or provision only shall be held for naught, as though not herein contained, and the remainder of this
Assignment shall remain operative and in full force and effect.

 

[REMAINDER OF PAGE INTENTIONALLY
LEFT BLANK]

 

    	M-13

     

    

 

IN WITNESS WHEREOF,
Assignor and Agent have executed this Assignment under seal on the date first above written.

 

	 	AGENT:
	 	 
	 	KEYBANK NATIONAL ASSOCIATION, a national banking association, as Agent
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	(SEAL)

 

[Signatures Continued On Next Page]

 

    	M-14

     

    

 

	 	ASSIGNOR:
	 	 
	 	JERNIGAN CAPITAL OPERATING 

COMPANY, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	Jernigan Capital, Inc., a Maryland corporation, its managing member
	 	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	(SEAL)

 

    	M-15

     

    

 

EXHIBIT
“A”

 

HEDGE AGREEMENT

 

    	M-A-1

     

    

 

EXHIBIT
“B”

 

PROMISSORY NOTE LEGEND

 

“THIS NOTE HAS
BEEN PLEDGED BY JERNIGAN CAPITAL OPERATING COMPANY, LLC, A DELAWARE LIMITED LIABILITY COMPANY (“ASSIGNOR”), TO KEYBANK
NATIONAL ASSOCIATION, AS AGENT (“AGENT”) PURSUANT TO AN ASSIGNMENT OF HEDGE AGREEMENT DATED AS OF ________, 201__ (AS
THE SAME MAY BE MODIFIED, AMENDED OR RESTATED FROM TIME TO TIME, THE “ASSIGNMENT”). ALL AMOUNTS PAYABLE TO ASSIGNOR
PURSUANT TO THIS NOTE SHALL BE PAID DIRECTLY TO AGENT AS REQUIRED BY THE ASSIGNMENT.”

 

    	M-B-1

     

    

 

SCHEDULE
1

 

DESCRIPTION OF ASSIGNOR

 

JERNIGAN CAPITAL OPERATING COMPANY, LLC,
a Delaware limited liability company. Debtor has been using or operating under said name and identity or corporate structure without
change since __________.

 

Names and Tradenames used within last five
years: None.

 

Location of all chief executive offices
over last five years: 6410 Poplar Avenue, Suite 650, Memphis, TN 38119

 

Organizational Number:                           

 

Federal Tax Identification Number:                           

 

    	M-S-1

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