Document:

Exhibit

Execution Version

Exhibit 10.1

SERIES B-4 CUMULATIVE CONVERTIBLE PREFERRED STOCK  
SUBSCRIPTION AGREEMENT
THIS SERIES B-4 CUMULATIVE CONVERTIBLE PREFERRED STOCK SUBSCRIPTION AGREEMENT (this “Agreement”), is made as of the 25th day of September, 2019 by and among IMH Financial Corporation, a Delaware corporation (the “Company”), and JPMorgan Chase Funding Inc. (the “Purchaser”).  The Company and the Purchaser may each be referred to herein as a “Party” or collectively as the “Parties”.
WHEREAS:
A.    The Parties are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Rule 506 of Regulation D (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”).
B.    The Purchaser desires to purchase from the Company, and the Company wishes to sell to the Purchaser, upon the terms and conditions stated in this Agreement, shares of Series B-4 Cumulative Convertible Preferred Stock of the Company, $0.01 par value per share (the “Series B-4 Preferred Stock”).
C.    The Company has duly adopted and filed with the Secretary of State of the State of Delaware on or before the Closing the Certificate of Designation of Series B-4 Cumulative Convertible Preferred Stock of the Company in the form attached hereto as Exhibit A (the “Series B-4 Certificate”).
D.    The Board of Directors of the Company (the “Board”) has, by the vote of a requisite majority of the directors serving thereon and pursuant to Section 141 of the Delaware General Corporation Law (“DGCL”), (a) determined that it is in the best interests of the Company and its shareholders, and declared it advisable, to enter into this Agreement with the Purchaser, and (b) duly approved the execution, delivery and performance of this Agreement and the consummation of the transactions contemplated in connection therewith.
E.    The Required Holders (as defined in the Second Amended and Restated Series B-1, B-2 and B-3 Certificate) of the shares of the Company’s Series B Preferred Stock outstanding immediately prior to the date of this Agreement have approved the Company’s entry into this Agreement and its creation of the Series B-4 Preferred Stock and the issuance of the Shares in accordance with the terms and conditions of the Series B-4 Certificate.
NOW THEREFORE, the Parties, hereby agree as follows:
1.Purchase and Sale of Series B-4 Preferred Stock.

19691978.6

Execution Version

Exhibit 10.1

1.1    Number of Shares; Purchase Price. Subject to the terms and conditions of this Agreement, at the Closing, the Purchaser agrees to purchase and the Company agrees to sell and issue to the Purchaser 1,875,000 shares of Series B-4 Preferred Stock at a price of $3.20 per share (the “Purchase Price”).  The shares of Series B-4 Preferred Stock issued to the Purchaser pursuant to this Agreement shall be referred to in this Agreement as the “Shares”.
1.2    Closing; Delivery.
(a)    The purchase and sale of the Shares shall take place remotely via the exchange of documents and signatures, on the date of this Agreement (the “Closing”).
(b)    At the Closing, (i) the Purchaser shall pay to the Company for the Shares to be issued and sold to the Purchaser at the Closing an amount equal to the Purchase Price, by wire transfer of immediately available funds to the account designated by the Company; (ii) the Company shall enter the Shares in the Purchaser’s name in the books and records of the Company and deliver to the Purchaser at the Closing (A) a notice of issuance executed by an officer of the Company with respect to the Shares against payment of the Purchase Price, and (B) a certificate by an authorized officer of the Company certifying (I) the Series B-4 Certificate and (II) resolutions of the Board and of the Required Holders, each approving the creation of Series B-4 Preferred Stock, the Transaction Documents and the Transactions; and (iii) each of the Investment Agreement and the Investors’ Rights Agreement shall have been duly executed and delivered by all parties.
1.3    Use of Proceeds.  The Company shall use the proceeds from the sale of the Shares to purchase or otherwise acquire fee interests in real estate, joint venture interests in fee interests in real estate, mortgage loans secured exclusively by real estate or interests in joint ventures formed to make mortgage loans secured exclusively by real estate, mezzanine loans made exclusively for the financing of real estate and which are secured by a first lien position on the entire ownership interests of the entity owning the real estate, and other assets and financial instruments that are considered “qualifying assets” or “real estate-related  assets” and for general corporate purposes.
1.4    Defined Terms Used in this Agreement.  In addition to the terms defined above, the following terms used in this Agreement shall have the meanings set forth or referenced below.
(a)    “Affiliate” of any Person means any other Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such Person.  The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) as used with respect to any Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.
(b)    “Agreement” has the meaning set forth in the Preamble.

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Execution Version

Exhibit 10.1

(c)    “Board” has the meaning set forth in the Recitals.
(d)    “Bylaws” means the Third Amended and Restated Bylaws of the Company, as amended and in effect.
(e)    “Capital Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, and any and all equivalent ownership interests in a Person (other than a corporation).
(f)    “Class A Common Stock” has the meaning set forth in Section 2.2(a)(i).
(g)    “Class B Common Stock” has the meaning set forth in Section 2.2(a)(i).
(h)    “Class B-1 Common Stock” has the meaning set forth in Section 2.2(a)(i).
(i)    “Class B-2 Common Stock” has the meaning set forth in Section 2.2(a)(i).
(j)    “Class B-3 Common Stock” has the meaning set forth in Section 2.2(a)(i).
(k)    “Class B-4 Common Stock” has the meaning set forth in Section 2.2(a)(i).
(l)    “Class C Common Stock” has the meaning set forth in Section 2.2(a)(i).
(m)    “Class D Common Stock” has the meaning set forth in Section 2.2(a)(i).
(n)    “Closing” has the meaning set forth in Section 1.2(a).
(o)    “Code” means the Internal Revenue Code of 1986, as amended.
(p)    “Common Stock” has the meaning set forth in Section 2.2(a).
(q)    “Company” has the meaning set forth in the Preamble.
(r)    “Company Covered Person” means, with respect to the Company as an “issuer” for purposes of Rule 506 of Regulation D, any Person listed in the first paragraph of Rule 506(d)(1) of Regulation D.

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Execution Version

Exhibit 10.1

(s)    “Company Entity” means, collectively, the Company and each of the Subsidiaries.
(t)    “DGCL” has the meaning set forth in the Recitals.
(u)    “Disclosure Schedule” means the schedule attached hereto as Exhibit B.
(v)    “Disqualifying Event” has the meaning set forth in Section 2.4(b).
(w)    “ERISA” has the meaning set forth in Section 2.11(b).
(x)    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.
(y)    “Fee Assets” means real estate assets owned by any of the Company Entities.
(z)    “GAAP” means United States generally accepted accounting principles.
(aa)    “Governmental Authority” means any court or governmental or regulatory authority of the United States, any State or locality thereof or any foreign jurisdiction.
(bb)    “Investment Agreement” means that certain Third Amended and Restated Investment Agreement among the Company, the Purchaser and the other investors identified therein dated as of the Closing, in the form of Exhibit C attached hereto.
(cc)    “Investors’ Rights Agreement” means the Second Amended and Restated Investors’ Rights Agreement among the Company and the Purchaser and certain other shareholders of the Company dated as of the date of the Closing, in the form of Exhibit D attached hereto.
(dd)    “Knowledge” including the phrases “to the Knowledge of the Company”, “to the Company’s Knowledge” or similar language means the actual knowledge as of the date hereof of the Chief Executive Officer, the Chief Financial Officer, the General Counsel and the Executive Vice President of Hospitality, including knowledge any such person would reasonably be expected to obtain in the ordinary course of their position and supervision of their direct reports.  
(ee)    “Laws” means all present or future federal, state local or foreign laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all administrative or judicial orders, consent agreements, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental entity.

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19691978.6

Execution Version

Exhibit 10.1

(ff)    “Leased Assets” means real estate assets leased by the Company Entities.
(gg)    “Lien” means with respect to any asset or property, any mortgage, lien, pledge, hypothecation, charge, security interest, encumbrance or adverse claim of any kind and any restrictive covenant, condition, restriction or exception of any kind that has the practical effect of creating a mortgage, lien, pledge, hypothecation, charge, security interest, encumbrance or adverse claim of any kind (including any of the foregoing created by, arising under or evidenced by any conditional sale or other title retention agreement, the interest of a lessor with respect to any obligation that is required to be classified and accounted for as a capital lease on a balance sheet of such Person prepared in accordance with GAAP, and the amount of such obligation shall be the capitalized amount thereof, determined in accordance with GAAP, or any financing lease having substantially the same economic effect as any of the foregoing).
(hh)    “Material Adverse Effect” means any event, state of facts, circumstance, development, change or effect that, individually or in the aggregate with all other events, states of fact, circumstances, developments, changes and effects, (i) would materially adversely affect the ability of the Company to consummate the Transactions, or to perform its obligations under any of the Transaction Documents, in a timely manner or (ii) is materially adverse to the business, assets, liabilities, condition (financial or otherwise) or results of operations of the Company Entities, taken as a whole, other than in the case of clause (ii) above, any event, state of facts, circumstances, development, change, effect or occurrence resulting from (A) changes in general economic, regulatory or political conditions or in the securities, credit or financial markets in general, (B) general changes or developments in the business in which the Company Entities operate, (C) any acts of terrorism or war or any natural disaster or weather-related event,  or (D) any failure to meet internal or published projections, forecasts or revenue or earning predictions or any downward revisions for any period (provided that this clause (D) shall not be construed as providing that the change, event, circumstance, development, occurrence or state of facts giving rise to such failure does not constitute or contribute to a Material Adverse Effect on the Company), except, in the case of the foregoing clause (A), (B) or (C), to the extent such changes or developments referred to therein would reasonably be expected to have a materially disproportionate negative impact on the Company Entities, taken as a whole, compared to other comparable participants in the Company’s industries.
(ii)    “Most Recent 10-Q” has the meaning set forth in Section 2.9(a).
(jj)    “Most Recent Balance Sheet” has the meaning set forth in Section 2.9(a).
(kk)    “Options” means any rights, warrants or options to subscribe for or purchase shares of common stock or any other stock or securities directly or indirectly convertible into or exchangeable or exercisable for shares of common stock.

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19691978.6

Execution Version

Exhibit 10.1

(ll)    “Party” has the meaning set forth in the Preamble.
(mm)    “Person” means any individual, corporation, partnership, trust, limited liability company, association or other entity.
(nn)    “Preferred Stock” has the meaning set forth in Section 2.2(a)(ii).
(oo)    “Purchase Price” has the meaning set forth in the Section 1.1.
(pp)    “Purchaser” has the meaning set forth in the Preamble.
(qq)    “Real Estate Assets” means the Fee Assets and the Leased Assets.
(rr)    “Regulation D” has the meaning set forth in the Recitals.
(ss)    “Related Party Transactions” has the meaning set forth in Section 2.21.
(tt)    “Requested Documents” has the meaning set forth in Section 3.3.
(uu)    “Required Holders” has the meaning set forth in the Second Amended and Restated Series B-1, B-2 and B-3 Certificate.
(vv)    “Sarbanes-Oxley Act” has the meaning set forth in Section 2.10(a).
(ww)    “SEC” has the meaning set forth in the Recitals.
(xx)    “SEC Reports” has the meaning set forth in Section 2.9(a).
(yy)    “Securities” means, collectively, the Shares.
(zz)    “Securities Act” has the meaning set forth in the Recitals.
([[)    “Securities Laws” means the securities laws (including “Blue Sky” laws), legislation and regulations of, and the instruments, policies, rules, orders, codes, notices and interpretation notes of, the securities regulatory authorities (including the SEC) of the United States and any applicable states and other jurisdictions.
(aaa)    “Second Amended and Restated Series B-1, B-2 and B-3 Certificate” has the meaning set forth in Section 2.2(a)(ii).
(bbb)    “Series A Preferred Stock” has the meaning set forth in Section 2.2(a)(ii).
(ccc)    “Series A Preferred Stock Certificate” has the meaning set forth in Section 2.2(a)(ii).

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19691978.6

Execution Version

Exhibit 10.1

(ddd)    “Series B-1 Preferred Stock” has the meaning set forth in Section 2.2(a)(ii).
(eee)    “Series B-2 Preferred Stock” has the meaning set forth in Section 2.2(a)(ii).
(fff)    “Series B-3 Preferred Stock” has the meaning set forth in Section 2.2(a)(ii).
(ggg)    “Series B-4 Preferred Stock” has the meaning set forth in the Recitals.
(hhh)    “Shares” has the meaning set forth in Section 1.1.
(iii)    “Stock Plan” has the meaning set forth in Section 2.2(b).
(jjj)    “Subsidiaries” means any Person in which the Company, directly or indirectly, (a) owns an amount of voting securities or other interests that is sufficient to enable the Company to elect at least a majority of the members of such Person’s board of directors or other governing body or at least 50% of the outstanding equity or similar interests of such Person or (b) controls or operates all or any part of the business, operations or administration of such Person, and each of the foregoing, is individually referred to herein as a “Subsidiary.”
(kkk)    “Tax” means any federal, state, local, or non-U.S. income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental, customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or addition thereto, whether disputed or not and including any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person.
(lll)    “Tax Returns” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
(mmm)    “Transaction Documents” means this Agreement; the Series B-4 Certificate; the Investment Agreement; and the Investors’ Rights Agreement.
(nnn)    “Transactions” means the sale and issuance of the Shares to the Purchaser and the execution and delivery of the Transaction Documents and the consummation by the Company of all of the transactions contemplated therein.

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19691978.6

Execution Version

Exhibit 10.1

2.    Representations and Warranties of the Company.  Except (a) as disclosed in the Disclosure Schedule delivered or (b) as set forth in the SEC Reports filed with or furnished to the SEC prior to the third (3rd) business day immediately preceding the date of this Agreement (other than any disclosures in such documents referred to in the “Risk Factors” or “Forward Looking Statements” sections thereof or any other disclosures in such documents which are forward looking or predictive in nature) (provided that nothing disclosed in the SEC Reports shall be deemed to be a qualification of or modification to the representations or warranties set forth in Sections 2.1, 2.2, 2.3 and 2.4), and, in each case, to the extent the applicability of the disclosure to such representation and warranty is reasonably apparent from the text of the disclosure made, the Company represents and warrants to the Purchaser as follows:
2.1    Organization, Good Standing, Corporate Power and Qualification.  Except as set forth on Section 2.1 of the Disclosure Schedule, each Company Entity is a corporation, limited liability company, or other entity and is duly organized or formed and validly existing in good standing under the laws of the jurisdiction in which it is incorporated or organized and has the requisite corporate, limited liability company or other organizational power and authority to own its properties and to carry on its business as now being conducted and as proposed to be conducted by the Company Entities.  Other than with respect to the entities as disclosed in the SEC Reports, the Company does not, directly or indirectly, own any security or beneficial ownership interest, in any other Person (including through joint venture or partnership agreements) or have any interest in any other Person.  Each Company Entity is duly qualified to transact business and is in good standing in each jurisdiction in which its ownership or lease of property or the nature of the business conducted or proposed to be conducted by such Company Entity will make such qualification necessary, except where such failure to qualify could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Except as set forth on Section 2.1 of the Disclosure Schedule, the Company holds all right, title and interest in and to 100% of the Capital Stock, equity or similar interests of each of the Subsidiaries, in each case, free and clear of any Liens or any other restriction on the use, voting, transfer, receipt of income or other exercise of any attributes of free and clear ownership by a current holder.
2.2    Capitalization.
(a)    The authorized capital of the Company consists immediately prior to Closing of:
(i)    200,000,000 shares of common stock, $0.01 par value per share (the “Common Stock”), of which (1) 16,559,315 shares were issued and outstanding immediately prior to the Closing and (2)(A) 150,208,500 shares have been designated Common Stock (the “Class A Common Stock”), of which 1,909,338 shares are issued and outstanding as of the date of this Agreement; (B) 4,023,400 shares of which have been designated Class B-1 Common Stock (the “Class B-1 Common Stock”), of which 3,376,821 are issued and outstanding as of the date of this Agreement; (C) 4,023,400 shares of which have been designated Class B-2 Common 

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19691978.6

Execution Version

Exhibit 10.1

Stock (the “Class B-2 Common Stock”), of which 3,377,953 are issued and outstanding as of the date of this Agreement; (D) 8,165,700 shares of which have been designated Class B-3 Common Stock (the “Class B-3 Common Stock”), of which 6,912,510 are issued and outstanding as of the date of this Agreement; (E) 781,644 shares of which have been designated Class B-4 Common Stock (the “Class B-4 Common Stock”), of which 313,790 are issued and outstanding as of the date of this Agreement and, together with the Class B-1 Common Stock, Class B-2 Common Stock and Class B-3 Common Stock (the “Class B Common Stock”), of which 13,981,074 are issued and outstanding as of the date of this Agreement; (F) 15,803,212 shares of which have been designated Class C Common Stock (the “Class C Common Stock”), of which 668,903 are issued and outstanding as of the date of this Agreement; and (G) 16,994,144 shares of which have been designated Class D Common Stock (the “Class D Common Stock”), none of which are issued and outstanding as of the date of this Agreement.  As of June 30, 2019, the Company holds 2,370,181 shares of Common Stock in its treasury.
(ii)    100,000,000 shares of preferred stock, $0.01 par value per share (the “Preferred Stock”), of which (1) 10,574,941 shares were issued and outstanding immediately prior to the Closing and of which (2)(A) 2,604,852 shares have been designated as Series B-1 Cumulative Convertible Preferred Stock (the “Series B-1 Preferred Stock”), of which 2,604,852 shares are issued and outstanding as of the date of this Agreement; (B) 5,595,148 shares have been designated as Series B-2 Cumulative Convertible Preferred Stock (the “Series B-2 Preferred Stock”), of which 5,595,148 shares are issued and outstanding as of the date of this Agreement; (C) 2,352,941 shares have been designated as Series B-3 Cumulative Convertible Preferred Stock (the “Series B-3 Preferred Stock”), of which 2,352,941 shares are issued and outstanding immediately prior to the Closing; (D) 22,000 shares have been designated as Series A Perpetual Preferred Stock (the “Series A Preferred Stock”), of which 22,000 shares are issued and outstanding immediately prior to the Closing; and (E) 1,875,000 shares have been designated as Series B-4 Preferred Stock, of which none are issued and outstanding immediately prior to the Closing.  In addition to the rights, privileges and preferences provided by the DGCL, the rights, privileges and preferences of shares of (i) the Series B-1 Preferred Stock, Series B-2 Preferred Stock and Series B-3 Preferred Stock are as stated in the Second Amended and Restated Series B-1, B-2 and B-3 Certificate; (ii) the Series B-4 Preferred Stock as are stated in the Series B-4 Certificate; and (iii) of the Series A Preferred Stock are as stated in the Certificate of Designation of Series A Senior Perpetual Preferred Stock of IMH Financial Corporation (the “Series A Certificate”).  The Company holds no Preferred Stock in its treasury.
(b)    The Company has reserved 2,700,000 (which shall automatically be increased to 3,300,000 shares in connection with an initial public offering under the Securities Act, of Common Stock) shares of Common Stock for issuance to officers, directors, employees and consultants of the Company pursuant to the First Amended and Restated 2010 IMH Financial Corporation Employee Stock Incentive Plan duly adopted by the Board and approved by the Company’s shareholders (the “Stock Plan”).  Of such reserved shares of Common Stock, 540,386 shares have been issued pursuant to restricted stock purchase agreements, options to purchase 

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19691978.6

Execution Version

Exhibit 10.1

1,211,817 shares (net of forfeitures) have been granted and are currently outstanding and 947,797 shares of Common Stock remain available for issuance under the Stock Plan.  No shares of Common Stock or Preferred Stock are reserved for issuance under any plan, agreement or arrangement, other than shares of Common Stock reserved for issuance under the Stock Plan.
(c)    Section 2.2(c) of the Disclosure Schedule sets forth the capitalization of the Company immediately following the Closing including the number of shares of the following: (i) issued and outstanding Common Stock (including the number of shares designated as Class A Common Stock, Class B-1 Common Stock, Class B-2 Common Stock, Class B-3 Common Stock, Class B-4 Common Stock, Class C Common Stock and Class D Common Stock); (ii) granted Options under the Stock Plan, including vesting schedules and exercise prices; (iii) shares of Common Stock reserved for future award grants under the Stock Plan; (iv) issued and outstanding Preferred Stock (including the number of shares designated as Series B-1 Preferred Stock, Series B-2 Preferred Stock, Series B-3 Preferred Stock, and Series B-4 Preferred Stock); and (v) warrants or stock purchase rights, if any.  All of the outstanding or issuable shares of Capital Stock of the Company have been duly authorized and have been, or upon issuance will be, validly issued and are, or upon issuance will be, fully paid and nonassessable.
Except for (A) the conversion privileges of the Shares to be issued under this Agreement, (B) the rights provided in Section 4 of the Investment Agreement, (C) the securities and rights described in Section 2.2(a)(ii) of this Agreement and as set forth on Section 2.2(c) of the Disclosure Schedule or (D) to the extent disclosed in SEC Reports:
(i)    no shares of the Capital Stock of any Company Entity are subject to preemptive rights or any other similar rights or any Liens suffered or permitted by any Company Entity;
(ii)    there are no outstanding Options, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exercisable for, any shares of Capital Stock of any Company Entity, or contracts by which any Company Entity is or may become bound to issue additional shares of Capital Stock of any Company Entity or Options, calls or commitments of any character whatsoever relating to, or securities or rights convertible into or exercisable for, any shares of Capital Stock of any Company Entity;
(iii)    there are no agreements or arrangements under which any Company Entity is obligated to register the sale of any of its securities under the Securities Act;
(iv)    there are no outstanding securities or instruments of any Company Entity that contain any redemption or similar provisions, and there are no contracts by which any Company Entity is or may become bound to redeem a security of such Company Entity, and there are no other shareholder agreements or similar agreements to which any Company Entity or, to the Company’s Knowledge, any holder of the Company’s Capital Stock is a party;

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19691978.6

Execution Version

Exhibit 10.1

(v)    there are no securities or instruments containing anti-dilution or similar provisions that will or may be triggered by the issuance of the Shares;
(vi)    the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and
(vii)    to the Company’s Knowledge, no officer or director of the Company or beneficial owner of any of the Company’s outstanding Common Stock has pledged Common Stock in connection with a margin account or other loan secured by such Common Stock.
2.3    Authorization.
(a)    The Company has the requisite corporate power to enter into and perform its obligations under this Agreement and the Transaction Documents, including without limitation to issue the Shares at the Closing and the Common Stock issuable upon conversion of the Shares.  All action on the part of the officers of the Company necessary for the execution and delivery of the Transaction Documents, the performance of all obligations of the Company under the Transaction Documents to be performed as of the Closing and the issuance and delivery of the Shares has been taken as of the Closing.
(b)    The execution and delivery of the Transaction Documents by the Company and the consummation by the Company of the Transactions, including the issuance of the Shares have been duly authorized by the Board and the Required Holders and no further consent or authorization is required by any Company Entity, any of the Board (or any committee thereof) or the shareholders of the Company, other equityholders or holders of beneficial interests of the Company.  Without limiting the foregoing: (x) the Board has, by the vote of a requisite majority of the directors serving thereon, (I) determined that it is in the best interests of the Company and its shareholders, and declared it advisable, to enter into this Agreement with the Purchaser and (II) approved the execution, delivery and performance of this Agreement and the consummation of the Transactions, including the issuance of the Shares to the Purchaser and the adoption of the Series B-4 Certificate; and (y) the Required Holders have consented in writing to (A) the creation of the Series B-4 Preferred Stock and (B) the Transactions, in each case, in accordance with the Series B-4 Certificate.
(c)    The Transaction Documents have been duly executed and delivered by the Company and constitute valid and legally binding obligations of the Company Entities, enforceable against the Company Entities in accordance with their respective terms except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, or (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
2.4    Valid Issuance of Shares.

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19691978.6

Execution Version

Exhibit 10.1

(a)    The Shares being issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, upon issuance will be validly issued, fully paid and nonassessable, free of taxes and Liens with respect to the issuance and free of restrictions on transfer other than restrictions on transfer under the Transaction Documents, applicable state and federal Securities Laws and any liens or encumbrances created by the Purchaser.  Assuming the accuracy of the representations of the Purchaser in Section 3 of this Agreement and subject to any Disqualifying Event (as described below), the Shares will be issued in compliance with all applicable federal and state Securities Laws.
(b)    No “bad actor” disqualifying event described in Rule 506(d)(1)(i) through (viii) of the Securities Act (a “Disqualifying Event”) is applicable to the Company or, to the Company’s Knowledge, any Company Covered Person, except for a Disqualifying Event as to which Rule 506(d)(2)(ii) through (iv) or (d)(3), is applicable.
2.5    Governmental Consents and Filings.  Assuming the accuracy of the representations made by the Purchaser in Section 3 of this Agreement, no consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with or notification to, any federal, state or local governmental authority is required on the part of the Company in connection with the consummation of the transactions contemplated by this Agreement, except for (a) the filing of the Series B-4 Certificate, which has been filed with and accepted by the Secretary of State of the State of Delaware as of the Closing and (b) the applicable filings under the Exchange Act, the Securities Act and any relevant state securities administrators or related to the blue sky laws of various states, which have been made or will be made by the Company in a timely manner after the Closing.
2.6    Litigation; Compliance with Laws. Except as set forth on Section 2.6 of the Disclosure Schedule or the SEC Reports, there is no action, claim, dispute, arbitration, audit, hearing, inquiry, investigation, administrative enforcement proceeding, litigation or suit (whether civil, criminal, administrative or investigative) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitration tribunal pending or, to the Knowledge of the Company, threatened against any Company Entity, and there is no judgment, decree or order against any Company Entity, in each case, that would  be reasonably likely to adversely affect the Company’s ability to perform its obligations under this Agreement or to have a Material Adverse Effect.  Each Company Entity is in compliance in all material respects with all Laws applicable to the Company’s business as presently conducted, except where the failure to be in compliance would not be reasonably likely to adversely affect the Company’s ability to perform its obligations under this Agreement or to have a Material Adverse Effect.  Except as set forth on Section 2.6 of the Disclosure Schedule or the SEC Reports, no Company Entity has received written notice that it is in default in any material respect with respect to any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or Governmental Authority.

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19691978.6

Execution Version

Exhibit 10.1

2.7    Compliance with Other Instruments.  Except as set forth on Section 2.7 of the Disclosure Schedule, the execution and delivery of this Agreement and the other Transaction Documents by the Company and the performance of its obligations hereunder and thereunder and the consummation by the Company of the Transactions (including the issuance of the Shares) will not:  (a) result in a violation of its Certificate of Incorporation, as amended, the Series B-4 Certificate or Bylaws; (b) conflict with, or constitute a breach or default (or an event which, with the giving of notice or passage of time or both, constitutes or would constitute a breach or default) under, or give to others any right of termination, amendment, acceleration or cancellation of, or other remedy with respect to, any note, indenture, deed of trust, guaranty, indemnity, or mortgage, lease, sublease, agreement or contract to which it is a party or by which it or its assets is bound; or (c) result in a violation of any Law applicable to the Company or by which any property or asset of any Company Entity is bound or affected. The execution, delivery and performance of the Transaction Documents, the consummation of the Transactions, and the exercise by the Purchaser of its rights and remedies under the Transaction Documents will not result in any such violation or be in conflict with or constitute a default under items set forth in (a), (b) and (c) of this Section 2.7.  The Company has not sent a notice to the stockholders of the Company stating that the Board has determined not to pursue an initial public offering of the Common Stock under the Securities Act.
Neither the Company nor any of its Subsidiaries is in violation of any term of its certificate or articles of incorporation, certificate or articles of organization, bylaws, operating agreement or any other governing document, as applicable.  Neither the Company nor any of its Subsidiaries is or has been in violation of any term of or in default under (or with the giving of notice or passage of time or both would be in violation of or default under) any agreement or contract, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any Law applicable to any Company Entity, except where such violation or default could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or result in the acceleration of any indebtedness or other obligation of any Company Entity.  The business of the Company and its Subsidiaries have not been and are not being conducted in violation of any Law or any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or Governmental Authority except as could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
2.8    Voting Rights.  The Company is not a party to any agreements with the shareholders of the Company with respect to the voting of Capital Stock of the Company and, to the Company’s Knowledge, none of the Company’s shareholders have entered into any agreements with respect to the voting of Capital Stock of any Company Entity.
2.9    Financial Statements; Accuracy of SEC Reports.
(a)    Since December 31, 2014, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Exchange Act.  All of the foregoing items filed with the SEC (but not those items that merely were furnished to the SEC) prior to the date hereof but after December 

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31, 2014, are referred to herein as the “SEC Reports.”  The Company’s consolidated balance sheet as of June 30, 2019, as included in the Company’s quarterly report on Form 10-Q for the periods then ended, as filed with the SEC on August 14, 2019 (the “Most Recent 10-Q”), is referred to herein as the “Most Recent Balance Sheet”.  As of their respective dates, the SEC Reports complied in all material respects with the Securities Laws.  None of the SEC Reports, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  Since the filing of each of the SEC Reports, no event has occurred that would require an amendment or supplement to any such SEC Report and as to which such an amendment or supplement has not been filed and made publicly available on the SEC’s EDGAR system no less than five (5) business days prior to the date hereof.
(b)    As of their respective filing dates, the audited consolidated financial statements and unaudited interim financial statements of the Company Entities included in the SEC Reports have been prepared in accordance with GAAP applied on a consistent basis (except as may be indicated therein or in the notes thereto) and fairly present, in all material respects, the financial position of the Company as at the dates thereof and the results of its operations and cash flows for the periods then ended subject, in the case of the unaudited interim financial statements, to normal year-end adjustments and any other adjustments described in such financial statements.
(c)    There is no material transaction, arrangement or other relationship between the Company and an unconsolidated or other off-balance-sheet entity that is required to be disclosed by the Company in its reports pursuant to the Exchange Act that has not been so disclosed in the SEC Reports at least five (5) business days prior to the date of this Agreement.
(d)    Except as set forth on Section 2.9(d) of the Disclosure Schedule, since December 31, 2014, there have been no internal or SEC inquiries or investigations (formal or informal) regarding accounting or revenue recognition discussed with, reviewed by or initiated at the direction of any executive officer, board of directors or any committee thereof of any of the Company Entities.
(e)    The Company has never been a “shell company” (as defined in Rule 12b-2 under the Exchange Act).
2.10    Sarbanes-Oxley Compliance; Internal Accounting Controls; Disclosure Controls and Procedures; Books and Records.
(a)    Since December 31, 2014, there is and has been no failure on the part of the Company or any of the Company’s directors or officers (in their capacities as such) to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), including Section 402 related to loans and Sections 302 and 906 related to certifications.

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(b)    Since December 31, 2014, no Company Entity nor any director or officer of any Company Entity has received any complaint, allegation, assertion or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of any Company Entity or its internal accounting controls, including any complaint, allegation, assertion or claim that any Company Entity has engaged in any improper accounting or auditing practices.
(c)    Since December 31, 2014, no attorney representing any Company Entity, whether or not employed by a Company Entity, has reported evidence of a material violation of Securities Laws, breach of fiduciary duty or similar violation by any Company Entity or any of their respective officers, directors, employees or agents to their respective boards of directors or any committee thereof or pursuant to Section 307 of Sarbanes-Oxley Act.
(d)    The Company has kept, and has caused each of the Subsidiaries to, at all times since December 31, 2014, keep, books, records and accounts with respect to all of such Person’s business activities, in accordance with GAAP consistently applied.  Each Company Entity maintains a system of internal accounting controls sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management’s general or specific authorizations, (B) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset and liability accountability, (C) access to assets or incurrence of liability is permitted only in accordance with management’s general or specific authorization and (D) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any differences.
(e)    The Company maintains internal control over financial reporting required by Rule 13a-14 or Rule 15d-14 under the Exchange Act; and such internal control is effective and does not have any material weaknesses.
(f)    The Company maintains disclosure controls and procedures required by Rule 13a-15 or Rule 15d-15 under the Exchange Act; such disclosure controls and procedures are, and at all times since December 31, 2014 have been, effective to ensure that the information required to be disclosed by the Company in the reports that it files with or submits to the SEC (A) is recorded, processed, summarized and reported accurately within the time periods specified in the SEC’s rules and forms and (B) is accumulated and communicated to the Company’s management, including its principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
2.11    Employee Matters.
(a)    No Company Entity is delinquent in payments to any of its respective employees, consultants or independent contractors for any wages, salaries, commissions, bonuses or other direct compensation or reimbursements for any service performed for it through the date hereof.  To the Company’s Knowledge, each of the Company Entities has complied in all material 

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respects with all applicable state and federal equal employment opportunity laws and with other laws related to employment.  Each Company Entity has withheld and paid to the appropriate Governmental Authority or is holding for payment not yet due to such Governmental Authority all amounts required to be withheld from employees of such Company Entity and is not liable for any arrears of wages, taxes, penalties or other sums for failure to comply with any of the foregoing.
(b)    Section 2.11 of the Disclosure Schedule sets forth each employee benefit plan maintained, established or sponsored by any Company Entity, or which the Company Entities participate in or contributes to, which is subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).  The Company Entities have made all required contributions and have no liability to any such employee benefit plan, other than liability for health plan continuation coverage described in Part 6 of Title I(B) of ERISA, and has complied in all material respects with all applicable Laws for any such employee benefit plan.
2.12    Absence of Certain Changes.  Since the date of the Most Recent Balance Sheet, no Company Entity has sold any assets outside of the ordinary course of business, and except as set forth on Section 2.12 of the Disclosure Schedule, no Company Entity has had any capital expenditures outside the ordinary course of its business or has had or made, as applicable, any (i) grant or provision of severance or termination payments or benefits to any director or officer of any Company Entity or employee, independent contractor or consultant of such Company Entity in any material amount, (ii) material increase in the compensation, perquisites or benefits payable to any director, officer, employee, independent contractor or consultant of any Company Entity, (iii) grant of material equity or equity-based awards that may be settled in shares of Common Stock, Preferred Stock or any other securities of any Company Entity or the value of which is linked directly or indirectly, in whole or in part, to the price or value of any shares of Common Stock, Preferred Stock or other securities of any Company Entity, (iv) acceleration in the vesting or payment of compensation payable or benefits provided or to become payable or provided to any current or former director, officer, employee, independent contractor or consultant in any material amount or (v) material change in the terms of any outstanding Option with respect to any shares of the Company’s Common Stock or any other securities of the Company.
2.13    No Material Adverse Effect.  Since the date of the Most Recent Balance Sheet, there has been no Material Adverse Effect and no event, state of facts, circumstance, development, change or effect has occurred that, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.
2.14    No Undisclosed Liabilities. Except (i) as and to the extent disclosed or reserved against on the Most Recent Balance Sheet or specifically described in the notes to the financial statements set forth in the Most Recent 10-Q, (ii) as incurred since the date of the Most Recent Balance Sheet in the ordinary course of business consistent with past practice, or (iii) as set forth on Section 2.14 of the Disclosure Schedule, no Company Entity has any material liabilities or obligations of any nature, whether fixed or unfixed, known or unknown, secured or unsecured, 

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absolute, accrued, contingent or otherwise and whether due or to become due.  No representation or warranty or other statement made by the Company in this Agreement or any of the other Transaction Documents, the Disclosure Schedules or any certificate or instrument delivered pursuant to this Agreement contains any untrue statement or omits to state a material fact necessary to make any such statement, in light of the circumstances in which it was made, not misleading.
2.15    Tax Returns and Payments.  There are no federal, state, county, local or foreign Taxes, taxes, levies, impositions, levies or assessments material in amount that are due and payable by the Company which have not been timely paid, whether or not disputed.  There have been no examinations or audits of any Tax Returns or reports by any applicable federal, state, local or foreign governmental agency within the last three calendar years, and to the Company’s Knowledge, none are currently expected by any officer of the Company.  The Company has duly and timely filed all federal, state, county, local and foreign Tax Returns required to have been filed by it within the last three calendar years, and there are in effect no waivers of applicable statutes of limitations with respect to Taxes for any such years.  There are no Liens for Taxes (other than Taxes not yet due and payable) upon any of the assets of the Company.  The Company is not a United States real property holding corporation within the meaning of Code §897(c)(2) during the applicable period specified in Code §897(c)(1)(A)(ii).  The Company is not and has not been a party to any “reportable transaction,” as defined in Code §6707A(c)(1) and Reg. §1.6011-4(b).  Section 2.15 of the Disclosure Schedule sets forth the net operating losses of the Company for U.S. federal and state income tax purposes as of December 31, 2018, and identifies the nature and extent of any limitations or other restrictions on the availability of such net operating losses under Section 382 of the Code or any comparable provision of state law (as well as the date of any “ownership changes” within the meaning of Section 382(g) of the Code giving rise to such limitations).
2.16    Permits.  Each Company Entity has all franchises, permits, certificates of occupancy, licenses and any similar authority necessary for the conduct of its business, except for such franchises, permits, certificates of occupancy, licenses and similar authorities the lack of which could not reasonably be expected to have a Material Adverse Effect. None of the Company Entities is in default in any material respect under any of such franchises, permits, licenses or other similar authority that is material to the business of any Company Entity.
2.17    Disclosure.  The Company has made available to the Purchaser correct and complete copies of all of its corporate records, financial statements, SEC Reports, to the extent not otherwise available on EDGAR, and all other information in the possession of or available to the Company that the Purchaser has requested to evaluate whether it desires to acquire the Shares.
2.18    No General Solicitation.  No Company Entity, nor any Person acting on the behalf of any of the foregoing, has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act), including advertisements, articles, notices, or other communications published in any newspaper, magazine or similar media or broadcast over radio, television or internet or any seminar or meeting whose 

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attendees have been invited by general solicitation or general advertising, in connection with the offer or sale of the Shares.
2.19    No Integrated Offering.  No Company Entity, nor any Person acting on the behalf of any of the foregoing, has, directly or indirectly, made any offers or sales of any security or solicited any offers to purchase any security, under circumstances that would require registration of any of the Securities under the Securities Act or cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of the Securities Act.
2.20    Insurance.  Each of the Company Entities are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent for the businesses in which each of the Company Entities are engaged.  No Company Entity has been refused any insurance coverage sought or applied for, and no Company Entities has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not reasonably be expected to have a Material Adverse Effect.
2.21    Transactions with Related Parties.  Except as set forth on Section 2.21 of the Disclosure Schedule, there have been no transactions that are required to be reported under 17 C.F.R. 229.404(a) (“Related Party Transactions”), that have not already been disclosed in the SEC Reports.
2.22    Real Property.
(a)    At least twenty-five (25) percent of the Company’s consolidated gross revenues for the 12 months ended December 31, 2018 were, and at least twenty-five (25) percent of the Company’s consolidated total assets as of the date hereof (measured on a fair value basis as determined by the Company’s management) are, derived from the Company Entity’s direct ownership of real property and ownership of interests in limited liability companies, limited partnerships and other business entities that directly own real property.
(b)    Other than as set forth in Section 2.22 of the Disclosure Schedule, the Company has good and marketable fee or leasehold title to its Real Estate Assets, as applicable, subject only to liens securing indebtedness for money borrowed identified on in the Disclosure Schedule or disclosed in the SEC Reports and such other encumbrances as do not have, or could not reasonably be expected to have, a Material Adverse Effect.
(c)    Except as, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect: (i) no Company Entity has received any notice of violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with environmental laws with regard to the assets or the business operated by such Company Entity that is not fully and finally resolved, other than as set forth in the SEC 

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Reports or Section 2.22 of the Disclosure Schedule and (ii) to the Company’s Knowledge, the assets and all operations of each Company Entity are in compliance with all applicable environmental laws.
(d)    Each Fee Asset of the Company Entities is in good condition, has been properly maintained in such manner as a reasonably prudent owner of real estate would maintain such assets and  is free from material defects except where such failure does not have or could not reasonably be expected to have a Material Adverse Effect.
(e)    Except as set forth in the SEC Reports and Section 2.22 of the Disclosure Schedule, no foreclosure of a mortgage or deed of trust on the landlord’s interest in a Leased Asset or termination of superior possessory interest in a Leased Asset will terminate the interests of any Company Entity in a Leased Asset so long such Company Entity complies with its obligations under the applicable lease creating the Leased Asset.
(f)    With respect to the Real Estate Assets, the Company has no outstanding obligations to fund loan proceeds, capital contributions, provide letters of credit or other credit enhancements, fund tenant allowances or provide “free rent” and other lease concessions that have or could reasonably be expected to have a Material Adverse Effect.
(g)    Except as set forth in the SEC Reports and Section 2.22 of the Disclosure Schedule, no Real Estate Asset has been damaged by any uninsured, unrepaired casualty that has or could reasonably be expected to have a Material Adverse Effect since the Most Recent Balance Sheet Date.
(h)    There are no obligations in connection with the Real Estate Assets of any so‐called “recapture agreement” involving refund for sewer extension, oversizing utility, lighting or like expense or charge for work or services done upon or relating to the Real Estate Assets that have or could reasonably be expected to have a Material Adverse Effect.
2.23    Investment Company.  The Company is not, and upon the Closing will not be, an “investment company,” a company controlled by an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act.  The Company is not relying on an exclusion from the definition of “investment company” in Section 3(b) or 3(c) of the Investment Company Act or an exclusion in any rule promulgated under the Investment Company Act.
2.24    Adequate Capital.  To the Knowledge of the Company, the Company has adequate capital with which to conduct the businesses in which it is engaged as such businesses are now conducted and are presently proposed to be conducted after the Closing and (ii) has not become, or is not presently, financially insolvent within the meaning of the bankruptcy laws or the insolvency laws of any jurisdiction.

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2.25    Brokers or Finders.  No agent, broker, investment banker or other Person acting on behalf of the Company, or under the authority thereof, is or will be entitled to any brokers’ or finders’ fee or any other commission or similar fee directly or indirectly from any of the Parties in connection with any of the Transactions.
2.26    No Conversion.  As of the date hereof, (a) the Company has not received any notice from any holder of the Series B Preferred Stock of such holder’s intent to exercise its right to convert all or any portion of the Series B Preferred Stock into shares of Common Stock pursuant to Section 6 of the Second Amended and Restated Series B-1, B-2 and B-3 Certificate, and (b) no event that would trigger the Automatic Conversion Time (as defined in the Second Amended and Restated Series B-1, B-2 and B-3 Certificate) pursuant to Section 7 of the Second Amended and Restated Series B-1, B-2 and B-3 Certificate has occurred.
2.27    Investment Agreement.   The Investment Agreement is (i) in full force and effect, (ii) a valid, binding obligation of the Company and, to the Knowledge of the Company, the other parties thereto, and (iii) enforceable against the Company in accordance with its terms, subject to bankruptcy, insolvency, reorganization and other Laws of general applicability relating to or affecting creditors’ rights and to general equity principles.  There does not exist any breach, violation or default (with or without notice, passage of time, or both) on the part of the Company or, to the Knowledge of the Company, any other party thereto, and, to the Knowledge of the Company, there does not exist any event, occurrence or condition, including the consummation of the Transactions, which (with or without notice, passage of time, or both) would, or would reasonably be expected to, constitute such a breach, violation or default.
3.    Representations and Warranties of the Purchaser.  The Purchaser hereby represents and warrants to the Company that:
3.1    Authorization.  The Purchaser has full power and authority to enter into the this Agreement and each of the Transaction Documents to which it is a party, and each Transaction Document to which the Purchaser is a party constitutes valid and legally binding obligations of the Purchaser, enforceable in accordance with its terms, except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance and any other laws of general application affecting enforcement of creditors’ rights generally, or (b) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies.
3.2    Purchase Entirely for Own Account.  The Purchaser is acquiring the Shares for investment for the Purchaser’s own account, not as a nominee or agent for any other Person, and not with a view to the resale or distribution of any part thereof, and the Purchaser has no present intention of selling, granting any participation in or otherwise distributing the Shares.  The Purchaser does not presently have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations in any of the Shares.  The Purchaser has not been formed for the specific purpose of acquiring the Shares.

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3.3    Disclosure of Information.  The Purchaser has received or received access to all documents and information requested by the Purchaser from the Company in connection with the Transactions (the “Requested Documents”) for the Purchaser’s evaluation of the risks of investing in the Shares.  The Purchaser has had an opportunity to discuss the Requested Documents and the Company’s business, management, financial affairs, terms and conditions of the offering of the Shares and any other related matters with the Company’s officers and directors.
3.4    Restricted Securities.  The Purchaser understands that the Shares have not been, and will not be, registered under the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein.  The Purchaser understands that the Shares are “restricted securities” under applicable federal and state Securities Laws and that, pursuant to such laws, the Purchaser must hold the Shares indefinitely unless they are registered with the U.S. Securities and Exchange Commission and qualified by applicable state authorities, or an exemption from such registration and qualification requirements is available.  The Purchaser acknowledges that the Company has no obligation to register or qualify the Shares or the Common Stock into which it may be converted for resale except as set forth in the Investors’ Rights Agreement.  The Purchaser further acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including, without limitation, the time and manner of sale, the holding period for the Shares and on requirements relating to the Company which are outside of the Purchaser’s control and which the Company is under no obligation and may not be able to satisfy.
3.5    No Public Market.  The Purchaser understands that no public market now exists for the Shares, and that the Company has made no assurances that a public market will ever exist for the Shares.
3.6    Forward-Looking Information.  The Purchaser understands that the Company may provide the Purchaser with certain projections and other forward-looking information regarding the Company and the Shares.  Projections and forward-looking information are inherently uncertain and should not be, and the Purchaser acknowledges that they are not being, relied upon by the Purchaser in making the decision to purchase the Shares.  Actual results may vary significantly from such projections or forward-looking information.
3.7    Compliance with Other Instruments.  The execution and delivery of the Transaction Documents, the consummation of the Transactions and the performance of the Purchaser’s obligations thereunder will not conflict with, or result in any violation of or default under, any provision of any governing instrument applicable to the Purchaser or any agreement or other instrument to which the Purchaser is a party or by which the Purchaser or any of the Purchaser’s properties are bound or any permit, franchise, judgment, order, writ, decree, statute, rule or regulation applicable to the Purchaser or the Purchaser’s properties; except, in any such case, as would not, and would not reasonably be expected to, prohibit the Purchaser from purchasing the Shares.

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3.8    Legends.  The Purchaser understands that the Shares and any securities issued in respect of or exchange for the Shares, may be notated (in either certificated or book-entry form) with one or all of the following legends:
(a)    “THESE SHARES OF SERIES B-4 CUMULATIVE CONVERTIBLE PREFERRED STOCK HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF.  NO TRANSFER OF THESE SHARES MAY BE EFFECTUATED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.”
(b)    Any legend required by the Securities Laws of any state to the extent such laws are applicable to securities represented by a certificate, an instrument or in book-entry notation.
3.9    Accredited Investor.  The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act and has sufficient knowledge and experience in finance, securities, investments and other business matters to be able to protect its interests in connection with the transactions contemplated by this Agreement.
3.10    Reliance.  The Purchaser acknowledges that it is not relying upon any Person in making its investment or decision to invest in the Company.  The Purchaser is not relying on any representations and warranties concerning the Company made by the Company or any officer, employee or agent of the Company, other than those contained in this Agreement or the SEC Reports.
3.11    Residence.  For purposes of complying with state Securities Laws, the Purchaser is a resident of New York.
3.12    Disclosure.  All information that the Purchaser has provided or will provide to the Company in connection with this Agreement, including, without limitation, all of the information regarding the Purchaser that is contained in the Transaction Documents, is correct and complete as of the date of this Agreement.  The Purchaser will promptly provide to the Company with written notice of any material changes in such information and such information will be correct and complete as of the date given and as of the date of the Closing.  The Purchaser acknowledges and understands that the Company will rely on the representations contained herein in order to comply with relevant exemptions from federal and state Securities Laws.
4.    [reserved].
5.    Miscellaneous.

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5.1    Form D and Blue Sky.  The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof to the Purchaser promptly after such filing.  The Company shall make all filings and reports relating to the offer and sale of the Securities required under applicable Securities Laws of the states of the United States following the Closing.
5.2    Expenses.  Each Party shall be responsible for all of its out-of-pocket costs incurred in connection with this Agreement and the transactions contemplated in connection therewith (including, without limitation, legal fees and expenses and due diligence related costs and expenses).
5.3    Survival of Representations and Warranties.  Unless otherwise set forth in this Agreement, the representations and warranties of the Company and the Purchaser shall survive the execution and delivery of this Agreement and the Closing for a period of eighteen (18) months after the Closing, provided that any claim made by the Company or the Purchaser with regard to such representations or warranties shall survive until resolved, and shall in no way be affected by any investigation or knowledge of the subject matter thereof made by or on behalf of the Purchaser or the Company.  Notwithstanding the foregoing, the representations and warranties made in Sections 2.1, 2.2, 2.3 and 2.4 shall survive indefinitely.
5.4    Successors and Assigns; No Third Party Beneficiaries or Obligations.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the Parties.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the Parties or their respective successors and assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Nothing in this Agreement, including any reference to any officer, director, employee, agent, consultant, representative or Affiliate of either Party to this Agreement, is intended to, or shall, create any express or implied liability or obligation on the part of any such Person other than the Parties hereto, nor is any representation, warranty or covenant contained in this Agreement made by or on behalf of any person other than the Party making such representation, warranty or covenant contained in this Agreement.
5.5    Governing Law.  This Agreement shall be governed by the internal law of the State of Delaware.
5.6    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.  Neither Party shall raise the use of a facsimile machine or electronic mail as a means of delivering a signature to this Agreement or any amendment hereto or the fact that such signature was transmitted or 

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communicated through the use of a facsimile machine or electronic mail delivery as a defense to the formation or enforceability of a contract and each Party forever waives any such defense.
5.7    Titles and Subtitles.  The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
5.8    Notices.  All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt, or (a) personal delivery to the Party to be notified, (b) when sent, if sent by electronic mail or facsimile during normal business hours of the recipient, and if not sent during normal business hours, then on the recipient’s next business day, (c) five business days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery, with written verification of receipt.  All communications shall be sent to the Parties at their respective addresses as set forth on the signature page hereto, or to such electronic mail address, facsimile number or address as subsequently modified by written notice given in accordance with this Section 5.8.  If notice is given to the Company, a copy shall also be sent by registered or certified mail to Ulmer & Berne LLP, 1660 West 2nd Street, Suite 1100, Cleveland, Ohio 44113, attention Howard Groedel, Esq., or by electronic mail to hgroedel@ulmer.com.  If notice is given to the Purchaser, a copy shall also be sent by registered or certified mail to Fried Frank Harris Shriver & Jacobson LLP, One New York Plaza, New York, New York 10004, attention: Julian Chung, or by electronic mail to Julian.Chung@friedfrank.com.
5.9    No Finder’s Fees.  Each Party represents that it neither is nor will be obligated for any finder’s fee or commission in connection with any of the Transactions.
5.10    Attorneys’ Fees.  If any action at law or in equity (including, without limitation, arbitration) is necessary to enforce or interpret the terms of any of the Transaction Documents, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such Party may be entitled.
5.11    Amendments and Waivers.  Any term of this Agreement may be amended, terminated or waived only with the written consent of the Company and/or the Purchaser, as the case may be.
5.12    Severability.  The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.
5.13    Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any Party, upon any breach or default of the other Party, shall impair any such right, power or remedy of such non-breaching or non-defaulting Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a 

24
19691978.6

Execution Version

Exhibit 10.1

waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under this Agreement, or any waiver on the part of any Party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Agreement or by law or otherwise afforded to any Party, shall be cumulative and not alternative.
5.14    Entire Agreement.  This Agreement (including the Exhibits hereto), the Series B-4 Certificate and the other Transaction Documents constitute the full and entire understanding and agreement between the Parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the Parties are expressly canceled.
5.15    Dispute Resolution.  The Parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of the State of Delaware and to the jurisdiction of the United States District Court sitting in the State of Delaware for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of the State of Delaware or the United States District Court sitting in the State of Delaware, and (c) hereby waive, and agree not to assert, by way of motion, as a defense or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.
5.16    Waiver of Jury Trial.  EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS, THE SHARES OR THE SUBJECT MATTER HEREOF OR THEREOF.  THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THE TRANSACTIONS CONTEMPLATED BY THE TRANSACTION DOCUMENTS, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.  THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS.  EACH PARTY HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.
[Remainder of page intentionally left blank; signature pages follow]

25
19691978.6

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.
COMPANY:
IMH FINANCIAL CORPORATION, a Delaware corporation
By: /s/ Lawrence D. Bain              
Name:  Lawrence D. Bain
Title:    Co-Chairman and Interim Chief Executive Officer

Address:  7001 North Scottsdale Road 
    Suite 2050
Scottsdale, Arizona 85253

[Signature Page to Series B-4 Cumulative Convertible Preferred Stock Subscription Agreement]
19691978.6

PURCHASER:
JPMORGAN CHASE FUNDING INC. 

By:_/s/ Chadwick S. Parson________
Name: Chadwick S. Parson
Title: Managing Director
Address: 383 Madison Ave
      New York, NY 10179

[Signature Page to Series B-4 Cumulative Convertible Preferred Stock Subscription Agreement]
19691978.6

EXHIBIT A
FORM OF SERIES B-4 CERTIFICATE

19691978.6

EXHIBIT B
DISCLOSURE SCHEDULE

19691978.6

EXHIBIT C
FORM OF INVESTMENT AGREEMENT

19691978.6

EXHIBIT D
FORM OF INVESTORS’ RIGHTS AGREEMENT

19691978.6Exhibit

Execution Version

Exhibit 10.2

THIRD AMENDED AND RESTATED
INVESTMENT AGREEMENT 
This THIRD AMENDED AND RESTATED INVESTMENT AGREEMENT (this “Agreement”) is entered into as of the 25th day of September, 2019 by and among JPMorgan Chase Funding Inc., a Delaware corporation (“JPM”), JCP Realty Partners, LLC, a Delaware limited liability company (“JCP”), Juniper NVM, LLC, a Delaware limited liability company (“Juniper”; together with JCP, “Juniper Parties” and, together with JPM and JCP, “Investors”), and IMH Financial Corporation, a Delaware corporation (the “Company” and, together with Investors, the “Parties”).
WHEREAS, the Company, JPM and SRE Monarch, LLC, a Delaware limited liability company (“Seller”) entered into that certain Preferred Stock Purchase Agreement dated as of April 11, 2017 (the “Purchase Agreement”), pursuant to which JPM purchased from Seller all of the outstanding shares (the “B-2 Purchased Shares”) of the Company’s Series B-2 Cumulative Convertible Preferred Stock, $0.01 par value per share (the “Series B-2 Stock”), on the terms and conditions set forth in the Purchase Agreement;
WHEREAS, concurrently with the execution of the Purchase Agreement, the Company and Investors entered into that certain Investment Agreement dated as of April 11, 2017 (the “Original Agreement”) in order to set forth their rights and obligations with respect to certain matters related to the Company, the B-2 Purchased Shares and Investors’ ownership of the Company’s Series B-1 Cumulative Convertible Preferred Stock, $0.01 par value per share (the “Series B-1 Stock”) and the Series B-2 Stock, as applicable;
WHEREAS, the Company and JPM entered into that certain Series B-3 Cumulative Convertible Preferred Stock Subscription Agreement dated as of February 9, 2018 (the “B-3 Subscription Agreement”), pursuant to which JPM purchased from the Company 2,352,941 shares (the “B-3 Purchased Shares”) of the Company’s Series B-3 Cumulative Convertible Preferred Stock, $0.01 par value per share (the “Series B-3 Stock” and together with the Series B-1 Stock and the Series B-2 Stock, the “Existing Series B Preferred Stock”), on the terms and conditions set forth in the B-3 Subscription Agreement;
WHEREAS, in connection with the transactions contemplated by the B-3 Subscription Agreement, the Company and Investors entered into that certain Amended and Restated Investment Agreement dated as of February 9, 2018 (the “Restated Agreement”), in order to amend and restate the Original Agreement in its entirety; 
WHEREAS, in connection with the transactions contemplated by the Purchase Agreement, the Certificate of Designation of the Company’s Series B Cumulative Preferred Stock in effect as of April 10, 2017 (the “Original Certificate”) was amended and restated in the form attached as Exhibit A to the Original Agreement (the “Existing Certificate”), and in connection with the transactions contemplated by the B-3 Subscription Agreement, the Existing Certificate was amended and restated in the form attached as Exhibit A hereto (the “B-123 Certificate”) concurrently with the closing of the transactions contemplated by the B-3 Subscription Agreement; 

19572537

Execution Version

Exhibit 10.2

WHEREAS, the Company and JPM entered into that certain Series A Senior Perpetual Preferred Stock Subscription Agreement (the “Series A Subscription Agreement”), pursuant to which JPM purchased from the Company 22,000 shares (the “Series A Purchased Shares”) of the Company’s Series A Senior Perpetual Preferred Stock, $0.01 par value per share (the “Series A Preferred Stock”), on the terms and conditions set forth in the Series A Subscription Agreement;
WHEREAS, in connection with the transactions contemplated by the Series A Subscription Agreement, the Company and Investors entered into that certain Second Amended and Restated Investment Agreement, dated as of May 31, 2018 (the “Second Restated Agreement”), in order to amend and restate the Restated Agreement in its entirety;
WHEREAS, concurrently with the execution of this Agreement, the Company and JPM are entering into that certain Series B-4 Cumulative Convertible Preferred Stock Subscription Agreement, dated as of the date hereof (the “B-4 Subscription Agreement”), pursuant to which JPM is purchasing from the Company 1,875,000 shares (the “B-4 Purchased Shares” and together with the B-2 Purchased Shares, the B-3 Purchased Shares and the Series A Purchased Shares, the “Purchased Shares”) of the Company’s Series B-4 Cumulative Convertible Preferred Stock, $0.01 par value per share (the “Series B-4 Stock” and together with the Existing Series B Preferred Stock, the “Series B Preferred Stock”), on the terms and conditions set forth in the B-4 Subscription Agreement;
WHEREAS, the Company has obtained the requisite approval of the holders of the Existing Series B Preferred Stock pursuant to the B-123 Certificate authorizing the Company to enter into and consummate the transactions contemplated by the B-4 Subscription Agreement;
WHEREAS, in connection with the transactions contemplated by the B-4 Subscription Agreement, the Company’s board of directors has duly authorized, and the Company has filed with the Secretary of State of the State of Delaware (the “Delaware Secretary”) Certificate of Designation of Series B-4 Cumulative Convertible Preferred Stock in the form attached as Exhibit B hereto (the “B-4 Certificate”) immediately prior to the closing of the transactions contemplated by the B-4 Subscription Agreement, which filing has been accepted by the Delaware Secretary; and 
WHEREAS, in order to induce JPM, and as a condition to JPM’s willingness, to enter into the B-4 Subscription Agreement and purchase the B-4 Purchased Shares the Company and Investors are entering into this Agreement in order to amend and restate the Second Restated Agreement in its entirety as set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual agreements hereinafter set forth, the Parties hereby agree as follows:
Article 1 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
The Company represents and warrants to Investors that:

2
19572537

Execution Version

Exhibit 10.2

Section 1.1    Representations in the Purchase Agreement and the Subscription Agreement.  Each of the representations and warranties of the Company set forth (a) in Article 3 of the Purchase Agreement was true and correct as of the date thereof, (b) in Article 2 of the B-3 Subscription Agreement was true and correct as of the date thereof, (c) in Article 2 of the Series A Subscription Agreement was true and correct as of the date thereof and (d) in Article 2 of the B-4 Subscription Agreement is true and correct as of the date hereof.
Section 1.2    Authority; Execution; Enforceability.  The Company has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated hereby, including the filing of the B-4 Certificate with the Secretary of State of the State of Delaware, by the Company have been duly authorized by all requisite action on the part of the Company and its stockholders and no other action on the part of the Company or its stockholders is necessary to authorize the execution, delivery and performance of this Agreement by the Company or the consummation of the transactions contemplated hereby.  Assuming due execution and delivery of this Agreement by Investors, this Agreement constitutes the valid and legally binding obligation of the Company, enforceable against it in accordance with its terms and conditions, subject to (a) bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and (b) general principles of equity. 
Section 1.3    No Conflicts.  Neither the execution and delivery of this Agreement nor the consummation of the transactions contemplated by this Agreement will conflict with or constitute on the part of the Company a breach of or default (or an event which, with notice or lapse of time or both, would constitute a default) or give rise to any right of termination, amendment, cancellation or acceleration under (a) its certificate of incorporation, as amended, including the certificates of designation of any preferred stock of the Company; (b) its by-laws, as amended; (c) any loan or credit agreement, note, bond, mortgage, indenture, lease, permit, concession, franchise, license, contract, agreement or other instrument, arrangement, understanding or obligation to which the Company or any of its subsidiaries is a party or by which any of them or any of their properties or assets may be bound; or (d) the Delaware General Corporation Law, or any other federal, state or local law, statute, ordinance, rule, regulation or any decree, writ, injunction, judgment or order from any court or governmental or regulatory authority of the United States, any State or locality thereof or any foreign jurisdiction (each, a “Governmental Authority”) or any arbitration award which is either applicable to, binding upon or enforceable against the Company.  Notwithstanding the generality of the foregoing, the Company’s grant to Investors of the rights set forth in Article 4 do not, and when and if exercised by Investors in accordance with their terms will not, conflict with or constitute a default or breach under any of the items described in clauses (a), (b), (c) or (d) that are applicable to the Company, including the B-123 Certificate and the B-4 Certificate (it being understood that the Company is not representing that the exercise of the rights set forth in Article 4 would not result, directly or indirectly, in a Noncompliance Event (as defined in the B-123 Certificate or the B-4 Certificate, as applicable) under the B-123 Certificate or the B-4 Certificate, as applicable). 

3
19572537

Execution Version

Exhibit 10.2

Section 1.4    Consents and Approvals.  Other than the filing of a Current Report on Form 8-K with the Securities and Exchange Commission (“SEC”), no notices, reports, registrations or other filings are required to be made by the Company with, nor are any consents, approvals or authorizations required to be obtained by the Company from any Governmental Authority or any other person under any contract, agreement or other obligation to which the Company is party or by which its assets are bound, in connection with the valid execution, delivery or performance of this Agreement and all other agreements and instruments contemplated hereby by the Company or the consummation by the Company of the transactions contemplated by this Agreement and all other agreements and instruments contemplated hereby that has not already been obtained in each case except for such notices, reports, registrations and other filings or consents, approvals or authorizations the failure of which to make or obtain, individually or in the aggregate, are not material to the Company’s ability to perform its obligations hereunder and would not reasonably be expected to have a material adverse effect on the Company, its assets, properties, liabilities or condition (financial or otherwise). Notwithstanding the generality of the foregoing, the Company’s grant to Investors of the rights set forth in Article 4 do not, and, if exercised by Investors in accordance with their terms immediately following the date hereof (assuming such rights were then exercisable) would not, require any such notices, filings or consents with or from any Governmental Authority (other than the filing of a Current Report on Form 8-K with the SEC), the Company’s Board of Directors, any stockholder of the Company or any other person, or under the B-123 Certificate or the B-4 Certificate (it being understood that the Company is not representing that the exercise of the rights set forth in Article 4 would not result, directly or indirectly, in a Noncompliance Event (as defined in the B-123 Certificate or the B-4 Certificate, as applicable) under the B-123 Certificate or the B-4 Certificate, as applicable).
Section 1.5    Litigation; Compliance with Laws.  Except as set forth in Schedule 1.5 (a) attached hereto and incorporated herein, there is no action, claim, dispute, arbitration, audit, hearing, inquiry, investigation, administrative enforcement proceeding, litigation or suit (whether civil, criminal, administrative or investigative) commenced, brought, conducted, or heard by or before, or otherwise involving, any Governmental Authority or arbitration tribunal pending or, to the knowledge of the Company, threatened against the Company, and there is no judgment, decree or order against the Company, in each case, that would be reasonably likely to adversely affect the Company’s ability to perform its obligations under this Agreement or to have a material adverse effect on the Company, its assets, properties, liabilities or condition (financial or otherwise).  The Company is in compliance in all material respects with all laws applicable to the Company’s business as presently conducted, except where the failure to be in compliance would not be reasonably likely to adversely affect the Company’s ability to perform its obligations under this Agreement or to have a material adverse effect on the Company, its assets, properties, liabilities or condition (financial or otherwise). Except as set forth in Schedule 1.5(b) attached hereto and incorporated herein, neither the Company nor any of its subsidiaries has received written notice that it is in default in any material respect with respect to any judgment, order, writ, injunction, decree, rule or regulation of any arbitrator or Governmental Authority. 
Section 1.6    Net Operating Losses.  As of the end of its 2018 taxable year, the Company had a net operating loss carryover for federal income tax purposes of at least $300,000,000.  The net operating loss carryover of the Company is not subject to any annual use limitation pursuant to 

4
19572537

Execution Version

Exhibit 10.2

Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), or any use limitation pursuant to the separate return limitation year provisions of Treasury Regulation Section 1.1502-21(c).
Section 1.7    Real Estate Holdings.  At least twenty-five (25) percent of the Company’s consolidated gross revenues for the 12 months ended June 30, 2019 were, and at least twenty-five (25) percent of the Company’s consolidated total assets as of the date hereof (measured on a fair value basis as determined by the Company’s management) are, derived from the Company’s and its subsidiaries’ direct ownership of real property or ownership of interests in limited liability companies, limited partnerships and other business entities that directly own real property.
Section 1.8    Investment Company Act.  The Company is not an “investment company” as defined in Section 3(a)(1) of the Investment Company Act of 1940, as amended (the “1940 Act”), and it is not relying on an exclusion from the definition of “investment company” in Section 3(b) or Section 3(c) of the 1940 Act or an exclusion in any rule promulgated under the 1940 Act.
Section 1.9    Ability to Perform.  The Company does not believe, and to the knowledge of the Company it does not have any reason or cause to believe, that it cannot perform each and every covenant of the Company contained in this Agreement, the Purchase Agreement, the B-3 Subscription Agreement, the B-4 Subscription Agreement, the Series A Subscription Agreement or any of the documents and agreements delivered pursuant hereto or thereto to which it is a party.
Section 1.10    Taxes.  The Company has timely filed or caused to be filed all required federal and other material tax returns and has paid all U.S. federal and other material taxes imposed on it and any of its assets by any Governmental Authority except for any such taxes as are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been provided in accordance with United States Generally Accepted Accounting Principles (“GAAP”).   No tax liens have been filed against any of the Company’s assets and no claims are being asserted in writing with respect to any such taxes (except for (i) liens and with respect to taxes not yet due and payable or liens or claims with respect to taxes that are being contested in good faith and for which adequate reserves have been established in accordance with GAAP and (ii) any such liens and claims that in the aggregate are not in excess of $1,000,000).
Section 1.11    Adequate Capital.  To the knowledge of the Company, the Company (i) has adequate capital with which to conduct the businesses in which it is engaged as such businesses are now conducted and are presently proposed to be conducted after the Closing (as defined in the B-4 Subscription Agreement) and (ii) has not become, or is not presently, financially insolvent within the meaning of the bankruptcy laws or the insolvency laws of any jurisdiction.
Section 1.12    Financial Information.  Complete and accurate copies of the Company’s audited financial statements consisting of the balance sheet of the Company as at December 31 in each of the years 2018, 2017 and 2016 and the related statements of income and retained earnings, stockholders’ equity and cash flow for the years then ended (the “Financial Statements”) have been delivered to the Purchaser (as defined in the B-4 Subscription Agreement). The Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the periods involved. The Financial Statements are based on the books and records of the Company, and fairly 

5
19572537

Execution Version

Exhibit 10.2

present in all material respects the financial condition of the Company as of the respective dates they were prepared and the results of the operations of the Company for the periods indicated. The Company maintains a standard system of accounting established and administered in accordance with GAAP.  Other than such adjustments that are proposed by the Company’s independent accountants that are both, individually and in the aggregate, immaterial to the Financial Statements, taken as a whole, neither the Company nor any subsidiary has received any advice or notification from its independent accountants that it has used any improper accounting practice that would have the effect of not reflecting or incorrectly reflecting in the books and records of any of the Company’s or its subsidiaries’ properties, assets, liabilities, revenues, expenses, equity accounts or other accounts.
Section 1.13    No Other Representations or Warranties.  Except for the representations and warranties contained in this Article 1 (including the related portions of the Schedules incorporated therein), the Officer’s Certificate delivered to the Investors on the date hereof in connection with the filing of the B-4 Certificate (the “Officer’s Certificate”), neither the Company nor any other person or entity has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Company, including any representation or warranty as to the accuracy or completeness of any information regarding the Purchased Shares or the Company, its assets, properties, liabilities, condition (financial or otherwise) or future prospects, furnished or made available to Investors and its directors, officers, employees, consultants, financial advisors, counsel, accountants and other agents (including, without limitation, any information, documents or material delivered or made available to Investors in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the Company’s operations, or any representation or warranty arising from statute or otherwise in law. 
Section 1.14    Knowledge of the Company.    As used in this Article 1 or elsewhere in this Agreement, the phrases “to the knowledge of the Company”, “the Company’s knowledge” or similar language, shall mean the knowledge as of the date of this Agreement of any member of the Company’s management team (which shall include any individual who is as of the date hereof a Vice President or a more senior employee of the Company), including knowledge any such person would reasonably be expected to obtain in the ordinary course of their position and supervision of their direct reports.  
Article 2 
REPRESENTATIONS AND WARRANTIES OF INVESTORS
Each Investor, severally and not jointly, represents and warrants to the Company that (except, however, that neither JCP nor Juniper will be deemed to make the representation and warranty contained in Section 2.1 or 2.4): 
Section 2.1    Representations in the Purchase Agreement and the Subscription Agreement.  Each of the representations and warranties of JPM set forth (a) in Article 4 of the Purchase Agreement was true and correct as of the date thereof, (b) in Article 3 of the B-3 Subscription Agreement was true and correct as of the date thereof, (c) in Article 3 of the Series A Subscription Agreement was true and correct as of the date thereof and (d) in Article 3 of the B-4 Subscription Agreement is true and correct as of the date hereof.

6
19572537

Execution Version

Exhibit 10.2

Section 2.2    Authority; Execution; Enforceability.  Such Investor has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement, the performance of its obligations hereunder, and the consummation of the transactions contemplated hereby, by such Investor have been duly authorized by all requisite action on the part of such Investor and no other action on the part of such Investor is necessary to authorize the execution, delivery and performance of this Agreement by such Investor or the consummation of the transactions contemplated hereby.  Assuming due execution and delivery of this Agreement by the Company and the other Investors, this Agreement constitutes the valid and legally binding obligation of such Investor, enforceable against it in accordance with its terms and conditions, subject to (a) bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally and (b) general principles of equity.
Section 2.3    Consents and Approvals.  No notices, reports, registrations or other filings are required to be made by such Investor with, nor are any consents, approvals or authorizations required to be obtained by Investor from, any Governmental Authority or any other person under any contract, agreement or other obligation to which such Investor is party or by which its assets are bound, in connection with the valid execution, delivery or performance of this Agreement and all other agreements and instruments contemplated hereby by such Investor or the consummation by such Investor of the transactions contemplated by this Agreement and all other agreements and instruments contemplated hereby, in each case except for such notices, reports, registrations and other filings the failure of which to make or obtain, individually or in the aggregate, are not material to such Investor’s ability to perform its obligations hereunder and such notices, reports, registrations, filings, consents, approvals and authorizations as have been made or obtained.
Section 2.4    Independent Investigation.  JPM has conducted its own independent investigation, review and analysis of the Company and the Purchased Shares, and acknowledges that it has been provided with such access to the personnel, properties, assets, premises, books and records, and other documents and data of the Company that it has requested for such purpose. JPM acknowledges and agrees that: (a) in making its decision to enter into the Purchase Agreement, the B-3 Subscription Agreement, the Series A Subscription Agreement, the B-4 Subscription Agreement and this Agreement and to consummate the transactions contemplated hereby, JPM has relied solely upon its own investigation and the express representations and warranties of the Company set forth in Article 1 of this Agreement (including related portions of the Schedules incorporated therein), in the Purchase Agreement, in the B-3 Subscription Agreement, in the Series A Subscription Agreement and in the B-4 Subscription Agreement; and (b) neither the Company nor any other person or entity has made any representation or warranty as to the Purchased Shares or the Company, its assets, properties, liabilities, condition (financial or otherwise) or future prospects or this Agreement, except as expressly set forth in the Purchase Agreement, in the B-3 Subscription Agreement, in the Series A Subscription Agreement, in the B-4 Subscription Agreement or in Article 1 of this Agreement (including the related portions of the Schedules incorporated therein) and JPM expressly disclaims reliance on any representation or warranty of the Company not contained in Article 1 of this Agreement, in the Purchase Agreement, in the B-3 Subscription Agreement, in the Series A Subscription Agreement or in the B-4 Subscription Agreement.

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19572537

Execution Version

Exhibit 10.2

Section 2.5    No Other Representations or Warranties.  No Investor (nor any other person or entity on behalf of an Investor) has made or makes to any other Investor, any representation or warranty, express or implied, written or oral, with respect to any matter pertaining to the Company, the Purchased Shares, this Agreement, the Purchase Agreement, the B-3 Subscription Agreement, the Series A Subscription Agreement, the B-4 Subscription Agreement, the B-123 Certificate, the B-4 Certificate or any transactions contemplated by, or any matter pertaining to, any of the foregoing agreements or instruments.
ARTICLE 3     
COVENANTS 
Section 3.1    Compliance and Reporting Obligations of the Company.
(a)    Until such time as it becomes eligible for the Designated Exclusion, the Company covenants and agrees that it shall not be an “investment company” as defined in Section 3(a)(1) of the 1940 Act without relying on an exclusion from the definition of “investment company” in Section 3(b) or Section 3(c) of the 1940 Act or an exclusion in any rule promulgated under the 1940 Act.
(b)    The Company shall proceed in good faith and take all commercially reasonable actions as are reasonably necessary for the Company to be eligible to rely on the exclusion from the definition of “investment company” set forth in Section 3(c)(5)(C) of the 1940 Act (the “Designated Exclusion”) and use its best efforts to remain eligible for the Designated Exclusion at all times thereafter.  Promptly (and in any event no more than five (5) days) after the Company has become eligible for the Designated Exclusion, the Company shall deliver a 1940 Act Compliance Statement (defined below) to each Investor evidencing the Company’s eligibility for the Designated Exclusion. Without the prior written consent of each Investor, which consent may be withheld for any or no reason, the Company will not take any action the result of which would reasonably be expected to cause the Company to become ineligible for the Designated Exclusion (whether or not the Company is then eligible for any other exclusion from the definition of “investment company” in Section 3(b) or Section 3(c) of the 1940 Act or in any rule promulgated thereunder).  
(c)    Within five (5) business days after the earlier of (i) the date the Company files with the SEC a quarterly report on Form 10-Q, or an annual report on Form 10-K, with respect to the fiscal quarter, or year, then ended (beginning with the quarter ending June 30, 2017) and (ii) the last date on which the Company could timely file the report in respect of the applicable fiscal quarter, or year, referenced in clause (i) in accordance with applicable law, the Company shall deliver to each Investor (a) a written statement in the form of Exhibit C attached hereto (a “1940 Act Compliance Statement”) setting forth in reasonable detail the information and calculations contemplated thereby and otherwise reasonably necessary for such Investor to determine whether the Company is then in compliance with the Designated Exclusion based on fair value accounting and all guidance issued by the Staff of the SEC with respect to calculations under Section 3(c)(5)(C) asset composition requirements under the 1940 Act, or (b) in the event the Company is not then in compliance with the Designated Exclusion, a written opinion of the Company’s outside legal counsel in the form of Exhibit D attached hereto (a “1940 Act Opinion”) that the Company is not an “investment company” as defined in Section 3(a)(1) of the 1940 Act without relying on an 

8
19572537

Execution Version

Exhibit 10.2

exclusion from the definition of “investment company” in Section 3(b) or Section 3(c) of the 1940 Act or an exclusion in any rule promulgated under the 1940 Act.  If, at any time after the Company relies on the Designated Exclusion, the Company becomes aware of any fact or circumstance, or any action is taken or not taken (including any agreement to act or not act) by or on behalf of the Company or any of its subsidiaries, the result of which would be that the Company is then not in compliance, or would be reasonably likely to be out of compliance, with the Designated Exclusion, the Company will (x) provide prompt (in any event within two (2) calendar days) written notice (a “Noncompliance Notice”) to each Investor describing the circumstances thereof, and including a 1940 Act Compliance Statement illustrating such non-compliance or expected non-compliance, and (y) at the request of JPM following delivery of a Noncompliance Notice, will promptly (in any event within 5 business days of such request) deliver to the Investors a 1940 Act Opinion.  The Company shall provide each Investor with access to records of the Company as are reasonably requested by such Investor in connection with its review of any 1940 Act Compliance Statement or Noncompliance Notice.
Section 3.2    Bank Holding Company Act.  The Company does not and, until such time as JPM determines, in its sole discretion, that JPM could not be deemed to be an affiliate of the Company for purposes of the Bank Holding Company Act of 1956, as amended (such act, the “BHCA” and such an affiliate, a “BHCA Affiliate”), the Company will not, and will not allow its BHCA Affiliates to: (a) engage in proprietary trading, as defined in Section 13 of the BHCA and the rules and regulations adopted thereunder, as amended (collectively, the “Volcker Rule”); (b) sponsor or hold an ownership interest in a covered fund, as such terms are defined in the Volcker Rule; or (c) engage in any transaction with a covered fund in violation of the “Super 23A” and “Super 23B” provisions of the Volcker Rule set forth in 12 CFR 248.14.  Within ten (10) business days after the first day of each calendar quarter, an executive officer of the Company shall deliver to the Investors a certificate (a “BHCA Certificate”) certifying that the Company is in compliance with the provisions of this Section 3.2 as of such date and was in compliance with such provisions at all times during the prior calendar quarter.
Section 3.3    Affiliated Transactions.  The Company hereby represents and acknowledges that the Company is deemed an Affiliate (as defined under 12 CFR Part 223.2) of JPM for purposes of the affiliated transactions rules under section 23A and 23B of the Federal Reserve Act and Regulation W thereunder, 12 CFR Part 223 (collectively, “Reg W”), and, as such, the Company shall at all times comply with the applicable requirements of Reg W and cooperate with JPM as reasonably necessary in connection therewith.  
Section 3.4    Compliance Breach.  Notwithstanding anything to the contrary in this Agreement, each Investor hereby agrees that JPM shall have the sole and exclusive power under this Agreement to determine, in its sole discretion, on behalf of the Investors (i) whether the Company has failed, in whole or in part, to perform or comply with any of the covenants and agreements set forth in Section 3.1, Section 3.2 and Section 3.3, (ii) whether or not any failure by the Company shall be excused, modified or waived by the Investors, and (iii) whether or not to pursue any one or more of the remedies contemplated by this Agreement with respect to such failure, including, without limitation, whether the Investors shall have the right to exercise the Put Right as a result of such failure.

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Section 3.5    Certain Matters Relating the Series B-4 Stock; Agreement Regarding “Required Holders”.  For so long as the Juniper Parties own at least 781,456 shares of Series B-1 Stock (as adjusted for stock splits, stock dividends, combinations, recapitalizations and the like), the Company and the Investors agree that: 
(a) notwithstanding anything to the contrary set forth in the B-123 Certificate or B-4 Certificate, (i) any matter requiring the approval or consent of the “Required Holders” pursuant to the B-123 Certificate or the B-4 Certificate shall not be approved or consented to, or deemed to be approved or consented to, unless the matter requiring such approval or consent is approved or consented to by holders of at least ninety-three percent (93%) of the outstanding shares of Existing Series B Preferred Stock entitled to vote thereon, (ii) the Company shall not, directly or indirectly, whether by merger, consolidation or otherwise, take or commit to take any action requiring the approval or consent of the Required Holders (as defined in the B-123 Certificate and the B-4 Certificate) under the B-123 Certificate or the B-4 Certificate, without the prior consent or approval of the holders of at least ninety-three percent (93%) of the shares of Existing Series B Preferred Stock then outstanding (in addition to any other vote required by applicable law and the Company’s certificate of incorporation, including the B-123 Certificate and B-4 Certificate, and bylaws), and (iii) any matter requiring the approval or consent of the “Required Holders” pursuant to the B-123 Certificate or the B-4 Certificate that does not receive the prior consent or approval of the holders of at least ninety-three percent (93%) of the shares of Existing Series B Preferred Stock then outstanding pursuant to this Section 3.5 shall be void ab initio; 
(b) on any matter requiring the vote, consent or approval of (i) the holders of the Existing Series B Preferred Stock pursuant to the B-123 Certificate and (ii) the holders of the Series B-4 Stock pursuant to the B-4 Certificate, including, without limitation, all matters set forth on Schedule I to the B-4 Certificate, JPM shall vote, or cause to be voted, all of its shares of Series B-4 Stock for or against any such matter (or provide or withhold, or cause to be provided or withheld, its consent in respect of such matter), as applicable, to the end that the outcome of the vote for approval (or non-approval) of, or consent (or non-consent) to, such matter by the holders of Series B-4 Stock is the same result of the vote for approval (or non-approval) of, or consent (or non-consent) to, such matter by the holders of the Existing Series B Preferred Stock; and 
(c) no Investor shall Transfer (as defined in the B-123 Certificate and the B-4 Certificate) such Investor’s shares of Series B Preferred Stock unless the transferee shall have executed a written instrument pursuant to which such transferee agrees to be bound by the provisions of this Section 3.5 as if such transferee were an Investor.  
The Company and the Investors further agree that, in the event the shares of Existing Series B Preferred Stock and the shares of Series B-4 Stock are, pursuant to the B-123 Certificate and B-4 Certificate, respectively, entitled to receive payment in respect of dividends, redemption, liquidation or otherwise, the Existing Series B Preferred Stock and the Series B-4 Stock will be treated pari passu, and to the extent the Company has insufficient funds to pay all such amounts in their entirety, any amounts available for such payments shall be applied ratably among the shares of each series of Existing Series B Preferred Stock and the Series B-4 Stock based on the aggregate amounts each such series of stock is entitled in the relevant circumstance.  Each of the Company and the Investors 

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shall take all actions reasonably requested by the Company or any Investor to carry out the purposes of this Section 3.5.
ARTICLE 4        
INVESTOR PUT RIGHT
Section 4.1    Grant.  Subject to Section 4.2, the Company hereby grants to each Investor an irrevocable, perpetual, right to require the Company to purchase (the “Put Right”), and upon exercise of the Put Right in accordance with this Article 4, the Company shall have the unconditional obligation to purchase from such Investor up to all of the shares of Series B-1 Stock, Series B-2 Stock, Series B-3 Stock and Series B-4 Stock, as applicable, then held by such Investor (or any affiliate of such Investor then holding any such shares) for a price per share equal to the Required Redemption Price (in the case of the Existing Series B Preferred Stock, as defined in the B-123 Certificate or, in the case of the Series B-4 Stock, as defined in the B-4 Certificate) for such shares (the “Put Price”).
Section 4.2    Exercise Mechanics.  Subject in all cases to Section 3.4, if (a) the Company breaches any covenant set forth in Section 3.1 or Section 3.2 or (b) at any time after becoming eligible for the Designated Exclusion, the Company is not eligible for the Designated Exclusion, and such breach or ineligibility is not cured within sixty (60) calendar days of the occurrence of such breach or ineligibility (provided that the cure period for failure to deliver a 1940 Act Compliance Statement, a 1940 Act Opinion or a BHCA Certificate within the time periods required therefor shall be five (5) calendar days) (the end of such cure period, the “Put Activation Date”), JPM may in its discretion exercise the Put Right by providing written notice of such exercise to the Company and the other Investors, and if and only if JPM exercises the Put Right, each other Investor may in its discretion exercise the Put Right by providing written notice of such exercise to the Company, in any case, specifying the number of shares of Series B-1 Stock, Series B-2 Stock, Series B-3 Stock or Series B-4 Stock, as the case may be, for which the Put Right is being exercised, and the aggregate Put Price therefor (an “Exercise Notice”), at any time (i) in the case of JPM, after the Put Activation Date and (ii) in the case of the other Investors, after receipt of JPM’s Exercise Notice, unless such breach or ineligibility is cured (and the Company has delivered written notice setting forth in reasonable detail how such breach or ineligibility has been cured and evidence thereof) prior to the delivery of an Exercise Notice; provided that unless such Investor otherwise informs the Company in writing prior to the Put Closing Date, in the event JPM (or any of its affiliates) provides the Company with an Exercise Notice, each Investor (other than JPM) and its affiliates (if any) shall be deemed to have provided the Company with an Exercise Notice with respect to all (or a proportionate portion thereof in the event the Exercise Notices of JPM and its affiliates are for less than all of the Series B Preferred Stock held by them) of the Series B Preferred Stock of such Investor (or affiliate).  As between JPM and the other Investors, any determination as to whether any breach or ineligibility by the Company giving rise to the right to exercise the Put Right has been cured will be made by JPM in its sole discretion.
Section 4.3    Closing of Put Right Purchase.  If the Company receives an Exercise Notice from JPM, then the Company shall promptly, but no later than three (3) calendar days after its receipt of such Exercise Notice, notify the other Investors in writing of such Exercise Notice and provide 

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such other Investors with a copy of such Exercise Notice.  On the thirtieth (30th) day after receipt of JPM’s Exercise Notice (the “Put Closing Date”), the Company shall purchase from JPM (and its affiliates, as applicable) and from all other Investors who provide (including for the avoidance of doubt, those Investors and their affiliates who are deemed to have provided) an Exercise Notice to the Company prior to the Put Closing Date, the number of shares of Series B-1 Stock, Series B-2 Stock, Series B-3 Stock or Series B-4 Stock as applicable, set forth in such Exercise Notices (the “Subject Shares”).  To the extent that the Company fails to purchase any of the Subject Shares as required by the preceding sentence (such Subject Shares not purchased, the “Remaining Shares”), dividends shall continue to accrue on the Remaining Shares as provided in the B-123 Certificate or in the B-4 Certificate (as applicable), whether or not declared, until all such Remaining Shares are purchased and all rights of such shares shall remain in full force and effect until purchased by the Company.  If the Company does not have sufficient funds available to purchase all of the Subject Shares, the Company shall purchase from all such Investors, on a pro rata basis in proportion to the aggregate Put Price payable to each such Investor as set forth in the Exercise Notice provided or deemed to have been provided by such Investor (“Pro Rata Share”), as many of such shares as it is able out of any available funds, and shall purchase the Remaining Shares from all such Investors, on a pro rata basis in proportion to their Pro Rata Share, that are not transferred as provided in Section 4.4 with all available funds of the Company thereafter until all of such Remaining Shares have been purchased and the Put Price therefor (and the interest thereon, if any, as set forth in Section 4.4) has been paid in full.   
Section 4.4    Put Closing Default. In addition to the provisions of Section 4.3, if the Company fails to consummate the purchase of all of the Subject Shares set forth in any Exercise Notices delivered in accordance with this Article 4 on or prior to the applicable Put Closing Date (a “Put Closing Default”), any portion of the applicable Put Price not then paid shall bear interest at a rate of thirteen percent (13%) per annum compounding monthly until the Remaining Shares that are not transferred as provided in the following sentence are purchased and the applicable Put Price is paid in full.  In addition and notwithstanding anything to the contrary herein, from and after a Put Closing Default, each Investor to whom such Put Closing Default relates may, in its discretion, Transfer (in the case of the Existing Series B Preferred Stock, as defined in the B-123 Certificate or, in the case of the Series B-4 Stock, as defined in the B-4 Certificate) any Remaining Shares to any third party (to the extent of any Remaining Shares not purchased by the Company prior to such Transfer as required by Section 4.3) without obtaining any consent of the Board (as defined in the B-4 Subscription Agreement) or the holders of the Series B Preferred Stock.
Section 4.5    Series A Acceleration Notice. The Company agrees to deliver the Acceleration Notice (as defined in the Series A Certificate) to holders of the Series A Preferred Stock as and when required by the Certificate of Designation of Series A Preferred Stock, as may be amended, modified, supplemented or restated from time to time (the “Series A Certificate”).
ARTICLE 5     
CALL RIGHT
Section 5.1    Call Right.

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(a)    Upon the occurrence of a Noncompliance Liquidation Event, JPM may, in its sole discretion by written notice to the Company and Juniper Parties (the “Call Exercise Notice”) delivered within thirty (30) days of the occurrence of such Noncompliance Liquidation Event (the “Call Period”), elect to purchase from Juniper Parties (the “Call Right”) all, but not less than all shares of Series B-1 Stock then held by Juniper Parties (the “Call Shares”) for an aggregate purchase price (the “Call Purchase Price”) equal to the Noncompliance Redemption Price (as defined in the B-123 Certificate) that would apply to the Call Shares if there were a Noncompliance Redemption Demand (as defined in the B-123 Certificate) delivered concurrently with the Call Exercise Notice in respect of the Noncompliance Event (as defined below) that gave rise to the Noncompliance Liquidation Event.  If the Call Right is timely exercised, Investors and the Company shall consummate the transfer of the Call Shares as promptly as practicable but in no event later than ten (10) business days following the date the Call Exercise Notice is delivered (such 10th business day, the “Call Purchase Date”).  
For purposes of this Section 5.1, a “Noncompliance Liquidation Event” shall occur if, at any time following a Noncompliance Event (in the case of the Existing Series B Preferred Stock, as defined in the B-123 Certificate or, in the case of the Series B-4 Stock, as defined in the B-4 Certificate), the Company fails to pay in full, as applicable, the amounts described in clause (i) or clause (ii) of Section 4(e) of the B-123 Certificate or of the B-4 Certificate, as applicable, when specified in such clause. 
(b)    The Company hereby consents to and approves, and represents and warrants to Investors that the Board (as defined in the B-4 Subscription Agreement) has duly adopted resolutions consenting to and approving, the transfer of the Call Shares contemplated by and in accordance with this Section 5.1 in all respects at such time as the Call Right may be exercised in accordance herewith, which approvals shall be effective for all purposes of the B-123 Certificate, the B-4 Certificate, the bylaws of the Company and any other governing document, agreement or arrangement pursuant to which the transfer of the Call Shares upon exercise of the Call Right requires or could be deemed to require the prior consent or approval of the Company or the Board.
(c)    The Company and Investors agree and acknowledge that, notwithstanding Section 4(e) of the B-123 Certificate and Section 4(e) of the B-4 Certificate, if a Noncompliance Liquidation Event occurs, the Company shall not be required by any such Section 4(e) to take any action with respect to any liquidation, dissolution or wind-down of the Company prior to the later to occur of (i) the expiration of the Call Period and (ii) if the Call Right is exercised, the consummation of the transfer of the Call Shares to JPM (or, if JPM has not paid the Call Purchase Price in full on the Call Purchase Date, the business day after the Call Purchase Date).
ARTICLE 6      
SURVIVAL; INDEMNIFICATION

Section 6.1    Survival.  All representations and warranties contained in this Agreement shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby until the date that is one year from the date of this Agreement; provided, that the representations and warranties in Section 1.10 shall survive until thirty (30) days after the 

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expiration of the applicable statute of limitations, and Sections 1.1, 1.2, 1.3, 1.6, 1.7, 1.12, 1.13 and Sections 2.1, 2.2, 2.3, 2.4 and 5.1(b) shall survive indefinitely.  All covenants and agreements of the parties contained herein shall survive the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby indefinitely or for the period explicitly specified therein. 
Section 6.2    Indemnification by Company.  
(a)    The Company (the “Company Indemnifying Party”) shall indemnify and hold harmless each Investor, its affiliates and stockholders, directors and officers (collectively, the “Company Indemnified Parties”) from and against any and all liabilities, obligations, deficiencies, demands, claims, suits, actions, causes of action, assessments, losses, costs and expenses (including reasonable attorneys’ fees) (collectively, “Claims”), sustained or incurred by any such Company Indemnified Party, resulting from (i) any breach of a representation or warranty made by the Company Indemnifying Party in this Agreement, and (ii) any breach of a covenant made by the Company Indemnifying Party in this Agreement.  The provisions of this Section 6.2 are intended to be for the benefit of, and shall be enforceable by, each Company Indemnified Party.  In no event shall any Company Indemnifying Party be liable to any Company Indemnified Party for any punitive, incidental, consequential, special or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple, except to the extent paid by a Company Indemnified Party to a third party in respect of the claim for which such Company Indemnified Party is entitled to indemnification hereunder.  For the avoidance of doubt, the Company shall not be in breach of its representations and warranties in Section 1.6 unless and until there is a “determination,” as such term is defined in Section 1313(a) of the Code, that results in any such representation or warranty not being true and correct as of the date such representation or warranty was made.
(b)    Without limiting the foregoing, in the event one or more Company Indemnified Parties receive one or more payments from the Company (“Indemnity Proceeds”) in respect of any Claim for a breach of a representation or warranty of the Company in Article 1 (including, as a result of Section 1.1, any breach of a representation or warranty of the Company in Article 3 of the Purchase Agreement, in Article 2 of the B-3 Subscription Agreement, in Article 2 of the Series A Subscription Agreement or in Article 2 of the B-4 Subscription Agreement, in each case, determined in accordance with the terms of such agreement) or a covenant made by the Company in this Agreement or any other Claim ancillary or related to any such breach (a “Specified Breach”), such Indemnity Proceeds (net of the costs of obtaining such Indemnity Proceeds, including attorneys’ fees and expenses, which costs shall be reimbursed from the Indemnity Proceeds to the applicable Investor Indemnified Party(ies) incurring such costs, the “Net Indemnity Proceeds”) shall be allocated among, and disbursed to, all of the Investors in respect of such Specified Breach, on a pro rata basis in proportion to the sum of (i) (a) the aggregate Liquidation Preference (as defined in the B-123 Certificate) of all shares of the  Existing Series B Preferred Stock and (b) the aggregate Series B-4 Liquidation Preference (as defined in the B-4 Certificate) of all shares of the Series B-4 Stock and (ii) (a) the aggregate Conversion Price (as defined in the B-123 Certificate) of those shares of the Company’s Common Stock that were issued upon conversion of the Existing 

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Series B Preferred Stock and (b) the aggregate Conversion Price (as defined in the B-4 Certificate) of those shares of the Company’s Common Stock that were issued upon conversion of the Series B-4 Stock, in the case of each of clauses (i) and (ii), held by them at the time the Company pays the Indemnity Proceeds.  Each Investor agrees to cooperate in the determination of any required allocation of Net Indemnity Proceeds pursuant to this Section 6.2(b), and agrees, if applicable, to pay to the other Investors such portion of the Net Indemnity Proceeds received by such Investor as is required hereunder.  For the avoidance of doubt: (i) in the event JPM asserts Claims against the Company that are not with respect to a Specified Breach but that are based upon facts that would support a Claim for a Specified Breach, then for purposes of this Section 6.2(b), all of the recoveries by JPM from the Company in respect of such Claims shall be deemed to have arisen from a Specified Breach and shall be allocated among, and disbursed to, all of the Investors pursuant to and in accordance with this Section 6.2(b), regardless of whether the other Investors have asserted or are able to assert such Claims; and (ii) the provisions of this Section 6.2(b) shall not apply to any Claims asserted against the Company by JPM or any of its affiliates or direct or indirect subsidiaries with respect to any agreement (including, without limitation, any loan made to the Company by JPM or any of its affiliates or direct or indirect subsidiaries) other than this Agreement or by the Investors with respect to the Officer’s Certificate.
Section 6.3    Indemnification by Investors.  Each Investor (the “Investor Indemnifying Party”) shall indemnify and hold harmless, individually and not jointly and severally, the Company, its affiliates and stockholders, directors and officers (collectively, the “Investor Indemnified Parties”) from and against any and all Claims sustained or incurred by any such Investor Indemnified Party, resulting from (i) any breach of a representation or warranty made by the Investor Indemnifying Party in this Agreement, and (ii) any breach of a covenant made by the Investor Indemnifying Party in this Agreement.  The provisions of this Section 6.3 are intended to be for the benefit of, and shall be enforceable by, each Investor Indemnified Party.  In no event shall any Investor Indemnifying Party be liable to any Investor Indemnified Party for any punitive, incidental, consequential, special or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple, except to the extent paid by an Investor Indemnified Party to a third party in respect of the claim for which such Investor Indemnified Party is entitled to indemnification hereunder.
Section 6.4    Parity of Investors.  Notwithstanding anything to the contrary in any of this Agreement, the Purchase Agreement, the B-3 Subscription Agreement, the B-4 Subscription Agreement, the B-123 Certificate or the B-4 Certificate, and except to the extent (i) provided in Section 3.4 of this Agreement and (ii) provided in Section 11 of the B-123 Certificate and of the B-4 Certificate and Section 1.1.5 of Schedule I to the B-123 Certificate and to the B-4 Certificate as relates to a Pre‐Authorized Transfer to a JPM Permitted Transferee (each as defined in the B-123 Certificate or the B-4 Certificate, as applicable), each Party acknowledges that it is the intent and desire of the Parties, and each Party agrees, that, the terms of the Purchase Agreement, the Existing Certificate and the Original Agreement shall not modify or otherwise alter the parity between the Series B-1 Stock and the Series B-2 Stock that existed pursuant to the terms of the Original Certificate immediately prior to the Original Agreement.  In the event of any such modification or alteration of such parity in a manner that is adverse to an Investor, then: (a) the other Parties shall reasonably 

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cooperate with such Investor to attempt to restore or otherwise accomplish such parity; and (b) if, after reasonably cooperating, the Parties are unable to restore or otherwise accomplish such parity, then the Company shall indemnify such Investor for the damages and other losses (including diminution in value) suffered by such Investor from such absence of parity, and such indemnification shall be such Investor’s sole remedy with respect to such inability to restore or otherwise accomplish parity unless the Company is unable to restore or otherwise accomplish such parity in full.   Each Investor hereby agrees that the maximum amount it shall, and shall be entitled to, claim and recover as damages and other losses pursuant to this Section 6.4 from another Investor (the “Advantaged Investor”) is: (x) one hundred fifty percent (150%) of the sum of (A) the Original Price (as defined in the B-123 Certificate) per share of all the Series B-1 Stock or Series B-2 Stock, as applicable, held by such Investor plus (B) the Dividends (as defined in the B-123 Certificate) accrued and unpaid thereon, whether or not declared, through the date such Investor brings its claim against the Advantaged Investor; minus (y) any amounts such Investor (or its affiliates) recover from the Advantaged Investor with respect to its (or their) claim pursuant to Section 6.2(b).  For the avoidance of doubt, the immediately preceding sentence does not limit any Investor’s ability to claim and recover against the Company pursuant to this Section 6.4.
ARTICLE 7     
GENERAL PROVISIONS
Section 7.1    Notices. All notices, requests and other communications to any Party shall be in writing and shall be delivered in person, by electronic mail, mailed by certified or registered mail, return receipt requested, or sent by facsimile transmission.
If to JPM, to:
JPMorgan Chase Funding Inc.
383 Madison Avenue
New York, New York 10179
Attention: Chadwick S. Parson
Email: chad.s.parson@jpmorgan.com
Fax: (212) 834-6671
With a copy which shall not constitute notice, to:

Fried, Frank, Harris, Shriver & Jacobsen LLP
One New York Plaza
New York, New York 10004
Attention: Julian Chung
Email: julian.chung@friedfrank.com
Fax: (212) 859-4000

If to JCP or Juniper, to:

11150 Santa Monica Blvd., Suite 1400
Los Angeles, California 90025

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Attention: Jay Wolf
Email: jay@junipercptl.com
Fax: (213) 633-2323
With a copy which shall not constitute notice, to:

Munger, Tolles & Olson LLP
350 South Grand Avenue, 50th Floor
Los Angeles, California 90071
Attention:  C. David Lee
Email: david.lee@mto.com
Fax: (213) 593-2885

If to the Company, to: 
IMH Financial Corporation
7001 N. Scottsdale Rd, Suite 2050
Scottsdale, Arizona 85253
Attention: Lawrence D. Bain, CEO
Email: ldb@imhfc.com
Fax: (480) 840-8401

And to:
IMH Financial Corporation
7001 N. Scottsdale Rd, Suite 2050
Scottsdale, Arizona 85253
Attention: Legal Department
Email: legal@imhfc.com
Fax: (480) 840-8401
With a copy which shall not constitute notice, to:

Ulmer & Berne LLP
1660 West 2nd Street, Suite 1100
Cleveland, Ohio 44113-1448
Attention: Howard M. Groedel, Esq.
Email: hgroedel@ulmer.com  
Fax: (216) 583-7119

Section 7.2    Fees and Expenses.  Each Party shall pay its own costs and expenses incurred in connection with the preparation, negotiation, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby.
Section 7.3    Entire Agreement; Amendments. This Agreement (together with the B-123 Certificate, the B-4 Certificate, the Purchase Agreement, the B-3 Subscription Agreement, the B-4 Subscription Agreement, the Series A Subscription Agreement and the Investors’ Rights Agreement 

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(as defined in the B-4 Subscription Agreement)) is the entire agreement of the Parties and supersedes all prior agreements and understandings with respect to the subject matter hereof.  No amendment or modification (or termination or cancellation unless pursuant to the express terms) of this Agreement shall be effective unless made in writing by each Party. 
Section 7.4    Severability. Any provision of this Agreement that is invalid, unenforceable or illegal in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such invalidity, unenforceability or illegality without affecting the remaining provisions hereof and without affecting the validity, enforceability or legality of such provision in any other jurisdiction.
Section 7.5     Specific Enforcement; Cumulative Remedies. The Parties acknowledge that money damages may not be an adequate remedy for violations of this Agreement and that any Party, in addition to any other rights and remedies which the Parties may have hereunder or at law or in equity, may, in its sole discretion, apply to a court of competent jurisdiction for specific performance or injunction or such other relief as such court may deem just and proper in order to enforce this Agreement or prevent any violation hereof and, to the extent permitted by applicable law, each party waives any objection to the imposition of such relief. All rights, powers and remedies provided under this Agreement or otherwise available in respect hereof at law or in equity shall be cumulative and not alternative, and the exercise or beginning of the exercise of any thereof by any party shall not preclude the simultaneous or later exercise of any other such rights, powers or remedies by such Party.  In no event shall either Party be liable to the other Party for any punitive, incidental, consequential, special or indirect damages, including loss of future revenue or income, loss of business reputation or opportunity relating to the breach or alleged breach of this Agreement, or diminution of value or any damages based on any type of multiple, except to the extent paid by a Party to a third party in respect of a claim arising from such breach or alleged breach. 
Section 7.6    Amendment; Waiver.  Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Parties; provided, that any provision hereof may be waived by any waiving Party on its own behalf, without the consent of the other Party.
Section 7.7    Succession and Assignment.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns, and no other person or entity shall have any rights, interests or claims hereunder or be entitled to any benefits under or on account of this Agreement as a third party beneficiary or otherwise except the Company Indemnified Parties and the Investor Indemnified Parties and their respective rights under Article 6.  No Party may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval of the other Party; provided that each Investor may assign its rights under this Agreement without the consent of the Company to any such Investor’s affiliate to which shares of Series B-1 Stock, Series B-2 Stock, Series B-3 Stock or Series B-4 Stock, as applicable, are transferred pursuant to a transfer permitted under the B-123 Certificate or the B-4 Certificate, as applicable.  Any purported assignment in violation of this Section shall be void and of no effect. 

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Exhibit 10.2

Section 7.8    Applicable Law; Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed in all respects, including but not limited to, validity, interpretation and effect, by the laws of the State of New York regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof.  Any litigation against any party to this Agreement arising out of or in any way relating to this Agreement shall be brought solely in any federal or state court located in the State of New York in New York County and each of the Parties submits to the exclusive jurisdiction of such courts for the purpose of any such litigation.  Each party irrevocably and unconditionally agrees not to assert (a) any objection which it may ever have to the laying of venue of any such litigation in any federal or state court located in the State of New York in New York County, (b) any claim that any such litigation brought in any such court has been brought in an inconvenient forum and (c) any claim that such court does not have jurisdiction with respect to such litigation.  Each Party irrevocably and unconditionally waives, to the extent permitted by applicable law, any right to a trial by jury.
Section 7.9    Interpretation. The section headings contained herein are for reference purposes only and will not in any way affect the interpretation or meaning of this Agreement. 
Section 7.10    Counterparts.  This Agreement may be executed in one or more original or electronic counterparts, each of which shall be deemed an original, but all of which shall constitute the same instrument.
[Remainder of page left intentionally blank.]

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19572537

IN WITNESS WHEREOF, the Parties have set their hands to this Investment Agreement to be effective as of the date first written above. 
 THE COMPANY: 

	
		
	 
	IMH Financial Corporation

By: /s/ Lawrence D. Bain                  
Name: Lawrence D. Bain
Title:   Chairman and CEO

JPM: 

JPMorgan Chase Funding Inc.

By:_/s/ Chadwick S. Parson_______
Name: Chadwick S. Parson
Title:   Managing Director

JCP: 

JCP Realty Partners, LLC

By:_/s/ Jay Wolf________________
Name: Jay Wolf
Title:   Managing Partner

JUNIPER: 

Juniper NVM, LLC

By:   Juniper Capital Partners, LLC
Its:   Sole Member

By: _/s/ Jay Wolf________________
Name: Jay Wolf
Title:   Manager

19572537

Exhibit A

Second Amended and Restated Certificate of Designation of Series B-1 Cumulative Convertible Preferred Stock, Series B-2 Cumulative Convertible Preferred Stock and Series B-3 Cumulative Convertible Preferred Stock

See attached.

19572537

Exhibit B

Certificate of Designation of Series B-4 Cumulative Convertible Preferred Stock

See attached.

Exhibit C

1940 Act Compliance Statement

See attached.

Exhibit D

1940 Act Opinion

See attached.

Schedule 1.5(a)

Material Litigation

See attached.

    

    

Schedule 1.5(b)

Notices of Default

None.

19572537

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