Document:

Amended and Restated Renewal Secured Promissory Note

 Exhibit 10.1 
  

			
	 $26,500,000.00
	 	As of June 1, 2006
		 	(the “Effective Date”)

 Amended and Restated Renewal Secured Promissory Note 
 [SEBASTIAN BEACH AND TENNIS VILLAGE CONSTRUCTION
LOAN] 
 FOR VALUE RECEIVED, the undersigned, CRYSTAL BAY, L.L.C., a Delaware limited liability company (the “Borrower”),
whose address is 29399 U.S. Hwy. 19 North, Suite 320, Clearwater, Florida 33761-2137 (the “Borrower”), promises to pay the principal sum of Twenty Six Million Five Hundred Thousand and No/100 Dollars ($26,500,000.00), or so much thereof as
is disbursed under the Loan Agreement (as hereafter defined) and remains outstanding from time to time, together with interest according to the terms of this Amended and Restated Renewal Secured Promissory Note (this “Note”), to the order
of TRANSAMERICA OCCIDENTAL LIFE INSURANCE COMPANY, an Iowa corporation (together with any future holder, the “Lender”), whose mailing address is c/o AEGON USA Realty Advisors, Inc., 4333 Edgewood Road, N.E., Cedar Rapids, Iowa
52499-5443. The proceeds of this Note shall be disbursed by the Lender to or at the Borrower’s direction from time to time pursuant to all of the terms and conditions of that certain “Construction Loan Agreement” between the Borrower
and the Lender dated as of the Effective Date (the “Loan Agreement”). The loan evidenced by this Note and to be disbursed pursuant to the Loan Agreement, together with all additional charges, advances, and accruals, is herein called the
“Loan.” Capitalized terms used but not defined in this Note shall have the meanings assigned to them in the Mortgage, as defined in Section 12 below. 
  

	1.	CONTRACT INTEREST RATE 

  

	 	1.1	VARIABLE NOTE RATE AND ACCRUAL OF INTEREST 

 The unpaid principal balance of this Note shall bear interest at the lesser of (i) the variable rate of interest determined from time to time as
described in Section 1.2 (the “Note Rate”) and (ii) the maximum interest rate allowed by law, as described in Section 24 below. Interest on the unpaid principal balance of this Note shall be calculated in arrears on actual
days elapsed, based on a 360-day year. During any partial month, interest shall accrue based on the number of actual days which elapse during the related accrual period. 
  

	 	1.2	PERIODIC ADJUSTMENT OF NOTE RATE 

 The initial Note Rate, at which interest on the unpaid principal balance of the Loan shall accrue from the Effective Date through the last day of June,
2006, shall be six and ninety-eight one-hundredths percent (6.98%) per annum. On the first day of July, 2006, and thereafter at intervals of three (3) full calendar months throughout the Loan’s term (each such month commencing on a
first day of a month on or after July 1, 2006, a “Loan Month”), the Note Rate shall be adjusted to the per annum rate which is equal to 175 basis points (1.75%) over the three (3) month LIBOR rate (the “Index”), as
reported by The Wall Street Journal on 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 1 of 12 Pages 

 the last business day of the preceding month (in respect of any rate adjustment, the “Determination
Date”). The unpaid principal balance of this Note shall bear interest at the adjusted Note Rate during each Loan Month of the entire three (3) month accrual period. If The Wall Street Journal stops publishing the Index during
the term of the Loan, the Lender shall determine the Index rate by referring to the LIBOR rate published in another nationally recognized daily paper or electronic business publication reasonably acceptable to the Lender. 
  

	2.	SCHEDULED PAYMENTS 

  

	 	2.1	MONTHLY INTEREST ONLY PAYMENTS 

 Borrower has paid, on the date of the funding, interest due from the date of the funding through and including the last day of the calendar month in which
the funding occurs. On the first day of August, 2006 and on the first day of each subsequent Loan Month through June 1, 2011 the Borrower shall pay all interest that accrued on the outstanding unpaid principal balance of this Note from time to
time during the previous month at the Note Rate then in effect. Monthly payments of interest shall be made when due, regardless of the prior acceptance by the Lender of unscheduled payments. 
  

	 	2.2	FINAL PAYMENT 

 The Loan shall mature on the first day of July, 2011 (the “Maturity Date”), when the Borrower shall pay its entire outstanding unpaid principal balance, together with all accrued interest and any other amounts owed by the Borrower
under this Note or under any of the other documents entered into now or in the future in connection with the Loan (collectively, the “Loan Documents”). 
  

	3.	BALLOON PAYMENT ACKNOWLEDGMENT 

 The Borrower
acknowledges that the scheduled monthly payments referred to in Section 2.1 will not amortize the principal sum of this Note over its term, resulting in a “balloon” payment at maturity. Any future agreement to extend this Note or refinance
the indebtedness it evidences may be made only by means of a writing executed by a duly authorized officer of the Lender. 
  

	4.	APPLICATION OF MONTHLY INTEREST PAYMENTS 

 When the
Lender receives a monthly interest payment, the Lender shall apply it to interest in arrears for the previous month, unless other amounts are then due under this Note or the other Loan Documents. If other amounts are due when a regular monthly
payment is received, the Lender shall apply the payment first to accrued interest and then to those other amounts. 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 2 of 12 Pages 

	5.	DEFAULT INTEREST 

 If a Default exists (as defined
in Section 9 below) the outstanding principal balance of this Note shall, at the option of the Lender, bear interest at a rate (the “Default Rate”) equal to the lesser of (i) the Note Rate then in effect plus ten percent
(10%) per annum and (ii) the maximum rate allowed by law. If interest has accrued at the Default Rate during any period, the difference between such accrued interest and interest which would have accrued at the Note Rate during such period
shall be payable on demand. If a court of competent jurisdiction determines that any interest charged has exceeded the maximum rate allowed by law, the excess of the amount collected over the legal rate of interest will be applied to the
Indebtedness as a principal prepayment without premium, retroactively, as of the date of receipt, or returned to the Borrower if the Indebtedness has been fully paid. 
  

	6.	LATE CHARGE 

 If the Lender does not receive any
scheduled monthly interest payment on or before the tenth (10th) day of the calendar month in which it is due, the Lender will send the Borrower written notice that a late charge equal to five percent (5%) of the late payment has accrued.
The Borrower shall pay any such late charge on or before the tenth (10th) day of the calendar month following
the month during which the late payment was scheduled to have been received. Interest on unpaid late charges shall, at the Lender’s discretion, accrue at the Note Rate beginning on the first day of the calendar month following their accrual.

  

	7.	PREPAYMENT 

 This Note is closed to prepayment
during the period from its delivery until June 30, 2007 (the “Lock Period”). Thereafter, at any time prior to the Maturity Date, the principal balance of this Note may be prepaid in minimum increments of $500,000.00, upon not less
than sixty (60) days’ prior written notice to the Lender. At the time of any such prepayment, the Borrower shall pay all accrued interest on the outstanding unpaid principal balance of this Note and all other sums due to the Lender under
the Loan Documents. In addition, unless the prepayment is a “Permitted Par Prepayment” (as defined in Section 8 below), the Borrower shall remit together with any prepayment a premium (the “Prepayment Premium Amount”)
calculated in accordance with the next succeeding paragraph of this Note. 
 The voluntary prepayment of the Loan evidenced by this Note shall
be prohibited during the Lock Period. A Default which occurs during this period shall be presumed to be an attempt to avoid this prohibition, and shall be subject to a prepayment premium of five percent (5%) of the Loan’s principal
balance. If the prepayment is made between the beginning of the thirteenth (13th) Loan Month and the end of the twenty-fourth (24th) Loan Month, the prepayment premium amount shall equal one percent (1%) of the principal amount
prepaid. If the prepayment is made between the beginning of the twenty-fifth (25th) Loan Month and the end of the forty eighth (48th) Loan Month, the prepayment premium amount shall equal one-half of one percent (0.5%) of the principal
amount prepaid. If the prepayment is made between the beginning of the forty-ninth 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 3 of 12 Pages 

 (49th) Loan Month and the end of the fifty-fourth (54th) Loan Month, the prepayment premium amount shall equal one-quarter of one percent (.25%) of the principal amount prepaid. Thereafter the Loan may be
prepaid at par. 
 Voluntary partial prepayments shall be permitted only in minimum amounts of $500,000.00. 
 The Prepayment Premium Amount constitutes liquidated damages to compensate the Lender for reinvestment costs, lost opportunity costs, and the loss by the
Lender of its bargained-for investment in the Loan. The Borrower agrees that such liquidated damages are not a penalty but are a reasonable estimate in good faith of the actual damages sustained by the Lender as a result of such prepayment, which
actual damages are impossible to ascertain with precision. 
  

	8.	PERMITTED PAR PREPAYMENTS 

 The Lender shall not
charge a prepayment premium on certain prepayments (the “Permitted Par Prepayments”). Permitted Par Prepayments include: 
  

	 	(a)	any prepayment in full of the Loan made no more than one hundred eighty (180) days before the Maturity Date; 

  

	 	(b)	any prepayment made as the result of the Lender’s election to apply insurance or condemnation proceeds to the principal balance of this Note or as a result of the
Borrower’s election to make a partial prepayment in order to reduce the Loan-to-value ratio in order to enable it to use insurance or condemnation proceeds for Restoration pursuant to the terms of the Mortgage; 

  

	 	(c)	any prepayment made from proceeds of a funding of the Permanent Loan pursuant to Section 26 of the Mortgage; and 

  

	 	(d)	any prepayment in full of the Loan made no more than one hundred twenty (120) days after a Notice from the Lender to the Borrower pursuant to Subsection 26.2(g) of the
Mortgage. 

  

	9.	DEFAULT 

 A default on this Note
(“Default”) shall exist if (a) the Lender fails to receive any required payment of interest, on or before the tenth (10th) day of the calendar month in which it is due, (b) the Borrower fails to pay the matured balance of this Note on the Maturity Date, (c) a “Default” exists under, and as defined in, any of the other
Loan Documents, including, without limitation, the Loan Agreement. If a Default exists and the Lender engages counsel to collect any amount due under this Note or if the Lender is required to protect or enforce this Note in any probate, bankruptcy
or other proceeding, then any expenses incurred by the Lender in respect of the engagement, including the reasonable fees and reimbursable expenses of counsel and including such costs and fees which relate to issues that are particular to any given
proceeding, shall constitute indebtedness evidenced by this Note, shall be payable on demand, and shall bear interest at the Default Rate. Such fees and expenses include those incurred in connection with 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 4 of 12 Pages 

 any action against the Borrower for a deficiency judgment after a foreclosure sale of the Real Property
under the Mortgage, including all of the Lender’s reasonable attorneys’ fees, property appraisal costs and witness fees. 
  

	10.	ACCELERATION 

 If a Default exists, the Lender may,
at its option, declare the unpaid principal balance of this Note to be immediately due and payable, together with all accrued interest on the indebtedness evidenced hereby, all costs of collection (including reasonable attorneys’ fees and
expenses) and all other charges due and payable by the Borrower under this Note or any other Loan Document; provided, however, if the subject Default has arisen from a failure by the Borrower to make a regular monthly payment of
accrued interest, the Lender shall not accelerate the Indebtedness unless the Lender shall have given the Borrower at least three (3) Business Days advance Notice of its intent to do so. 
 If the subject Default is a “Curable Nonmonetary Default” as defined in the Mortgage, the Lender shall exercise its option to accelerate only by
delivering Notice of acceleration to the Borrower. The Lender shall not deliver any such Notice of acceleration until (a) the Borrower has received any required Notice of the prospective Default and (b) any applicable cure period has
expired. 
 Except as expressly described in this Section, no Notice of acceleration shall be required in order for the Lender to exercise its
option to accelerate the Indebtedness in the event of Default. 
  

	11.	PREPAYMENT FOLLOWING ACCELERATION 

 Any Default
resulting in the acceleration of the indebtedness evidenced by this Note shall be presumed to be an attempt to avoid the provisions of Section 7 of this Note, which prohibit prepayment or condition the Lender’s obligation to accept
prepayment on the payment of a prepayment premium. Accordingly, if the Indebtedness is accelerated, any amounts tendered to repay the accelerated Indebtedness, or realized by the Lender through its remedies following acceleration, shall be subject
to either (a) if the prepayment is tendered or realized during the Lock Period, a premium equal to five percent (5%) of the amount so tendered or realized or (b) if the prepayment is tendered or realized thereafter, the prepayment
premium that would have been applicable under Section 7 in respect of a voluntary prepayment (calculated from the date of acceleration through the Maturity Date). 
  

	12.	SECURITY 

 This Note is secured, in part, by
(i) an “Amended and Restated Mortgage, Security Agreement and Fixture Filing” (the “Mortgage”) granted by the Borrower, to the Lender, conveying certain real property (the “Real Property”) located in Brevard
County, Florida and granting a security interest in certain fixtures and personal property, (ii) an “Absolute Assignment of Leases and Rents” made by the Borrower to the Lender, assigning the landlord’s interest in all present
and future leases (the “Leases”) of all or any portion of the Real Property encumbered by the Mortgage (the “Lease Assignment”), and (iii) a “Collateral Assignment of Contract Rights and Documents” made by the
Borrower in 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 5 of 12 Pages 

 favor of the Lender (the “Contract Assignment”). Reference is made to the Loan Documents for a
description of the security and rights of the Lender. This reference shall not affect the absolute and unconditional obligation of the Borrower to repay the Loan in accordance with its terms. All of the real and personal property encumbered by the
Mortgage, the Lease Assignment, and the Contract Assignment is herein referred to as the “Property.” 
  

	13.	RECOURSE TO BORROWER 

 The Borrower is and shall be
fully and personally liable for the payment of the full amount of the Indebtedness evidenced by this Note and the other Loan Documents and the performance of all of the terms, covenants, and conditions required under this Note or any of the other
Loan Documents on the part of the Borrower to be performed, and the Lender shall have full recourse to all of the assets of the Borrower therefor. In addition, the Borrower is and shall at all times be fully and personally liable for all of the
Carveout Obligations (as defined in Section 14). Notwithstanding anything to the contrary contained herein, however, if the Completion (as defined in the Loan Agreement) of the Improvements in accordance with all of the terms and conditions of
the Loan Agreement has been demonstrated to the reasonable satisfaction of the Lender (as evidenced by a written acknowledgement or certification executed by the Lender) to have occurred on or before the Completion Date (or, in the event a Force
Majeure Event occurs, on or before the Outside Completion Date), time being of the essence hereof, then, subject to the last paragraph of Section 14 of this Note, the personal liability of the Borrower and its assets (other than the Property)
for the payment and performance of this Note and the other Loan Documents from and after such completion shall not exceed the sum of (i) twenty-five percent (25%) of the outstanding balance (including, without limitation, principal,
accrued interest, prepayment fees, late charges, and other costs) of the Loan existing from time to time, (ii) all costs of enforcement or collection (including reasonable attorneys’ fees and expenses) arising under Section 9 of this
Note or any of the other Loan Documents, and (iii) the Carveout Obligations as defined in Section 14 (the sum of Items (i), (ii) and (iii) being herein collectively called, the “Limited Recourse Amount”). Subject to the
last paragraph of Section 14 of this Note, the Lender agrees that from and after the time of such Completion as set forth above it shall not seek to enforce any monetary judgment with respect to the Indebtedness evidenced by this Note and the
other Loan Documents in excess of the Limited Recourse Amount against the Borrower except through recourse to the Property. At all times following any such reduction in the personal liability of the Borrower (subject to the last paragraph of
Section 14 of this Note), the Borrower shall be fully and personally liable for the Limited Recourse Amount (including, without limitation, the Carveout Obligations) and the Lender shall have full recourse to all of the assets of the Borrower
therefor. 
  

	14.	CARVEOUT OBLIGATIONS 

 The “Carveout
Obligations” are (a) the obligation to repay any portion of the Indebtedness evidenced by this Note or any of the other Loan Documents that arises from any of the “Carveouts” (as defined below), (b) the obligation to repay
the entire Indebtedness evidenced by this Note and the other Loan Documents, if the Lender’s 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 6 of 12 Pages 

 exculpation of the Borrower from personal liability under this Section has become void as set forth below
and in the Mortgage, (c) the obligation to indemnify the Lender in respect of its actual damages suffered in connection with any of the Carveouts, and (d) the obligation to defend and hold the Lender harmless from and against any claims,
judgments, causes of action or proceedings arising from any of the Carveouts. The “Carveouts” are: 
  

	 	(i)	fraud or material written misrepresentation; 

  

	 	(ii)	waste of the Property (which shall include damage, destruction or disrepair of the Real Property caused by a willful act or grossly negligent omission of the Borrower, but shall
exclude ordinary wear and tear in the absence of gross negligence); 

  

	 	(iii)	misappropriation of tenant security deposits (including proceeds of tenant letters of credit), Insurance Proceeds or Condemnation Proceeds; 

  

	 	(iv)	failure to pay property taxes, assessments or other lienable Impositions; 

  

	 	(v)	failure to pay to the Lender all Rents, income and profits (including any Rent collected more than one (1) month in advance, or any Rent for the last month of the lease term,
under any Lease in force at the time of Default), net of reasonable and customary operating expenses, received in respect of a period when the Loan is in Default; 

  

	 	(vi)	removal from the Real Property of Fixtures or Personal Property having an aggregate value over the Loan term in excess of $25,000.00, unless replaced in a commercially reasonable
manner; 

  

	 	(vii)	the out-of-pocket expenses of enforcing the Loan Documents following Default, not including expenses incurred after the Borrower has agreed in writing to transfer the Real Property
to the Lender by the Lender’s choice of either an uncontested foreclosure or delivery of a deed in lieu of foreclosure; 

  

	 	(viii)	terminating or amending a Lease of the Real Property in violation of the Loan Documents; 

  

	 	(ix)	any liability of the Borrower under the Environmental Indemnity Agreement; and 

  

	 	(x)	any Advance (as defined in the Loan Agreement) made by the Lender pursuant to Section 4.14 of the Loan Agreement in respect of Stored Pipe (as defined in the Loan Agreement).

 The Lender’s limited exculpation of the Borrower from personal liability for the repayment of the Indebtedness evidenced
by this Note and the other Loan Documents and the performance of the obligations arising thereunder as provided above shall be void without Notice if the Borrower (A) voluntarily transfers or creates any voluntary lien on the Property in
violation of the Loan Documents, or (B) files a voluntary petition for reorganization under Title 11 of the United States Code (or under any other present or future law, domestic or foreign, 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 7 of 12 Pages 

 relating to bankruptcy, insolvency, reorganization proceedings or otherwise similarly affecting the
rights of creditors), and has not offered, prior to the filing, to enter into the Lender’s choice of either an agreement to permit an uncontested foreclosure, or an agreement to deliver a deed in lieu of foreclosure within sixty (60) days
of the Lender’s acceptance of the offer. After the Lender accepts such an offer, default by the Borrower in fulfilling the terms of the accepted offer shall trigger personal liability for the entire Indebtedness. No such offer shall be
conditioned on any payment by the Lender, on the release of any Obligor from any Obligation, or on any other concession. 
  

	15.	SEVERABILITY 

 If any provision of this Note is held
to be invalid, illegal or unenforceable in any respect, or operates, or would if enforced operate to invalidate this Note, then that provision shall be deemed null and void. Nevertheless, its nullity shall not affect the remaining provisions of this
Note, which shall in no way be affected, prejudiced or disturbed. 
  

	16.	WAIVER 

 Except to the extent that such rights are
expressly provided in this Note, the Borrower waives demand, presentment for payment, notice of intent to accelerate, notice of acceleration, protest, notice of protest, dishonor and of nonpayment and any and all lack of diligence or delays in
collection or enforcement of this Note. Without affecting the liability of the Borrower under this Note, the Lender may release any of the Property, grant any indulgence, forbearance or extension of time for payment, or release any other person now
or in the future liable for the payment or performance of any obligation under this Note or any of the Loan Documents. 
 The Borrower
further: (a) waives any homestead or similar exemption; (b) waives any statute of limitation; (c) agrees that the Lender may, without impairing any future right to insist on strict and timely compliance with the terms of this Note,
grant any number of extensions of time for the scheduled payments of any amounts due, and may make any other accommodation with respect to the indebtedness evidenced by this Note; (d) waives any right to require a marshaling of assets; and
(e) to the extent not prohibited by applicable law, waives the benefit of any law or rule of law intended for its advantage or protection as a debtor or providing for its release or discharge from liability under this Note, excepting only the
defense of full and complete payment of all amounts due under this Note and the Loan Documents. 
  

	17.	VARIATION IN PRONOUNS 

 All the terms and words used
in this Note, regardless of the number and gender in which they are used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine, or neuter, as the context or sense of this Note or
any paragraph or clause herein may require, the same as if such word had been fully and properly written in the correct number and gender. 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 8 of 12 Pages 

	18.	WAIVER OF JURY TRIAL 

 THE BORROWER AND THE
LENDER WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS (A) UNDER THIS NOTE OR ANY OTHER LOAN DOCUMENT OR (B) ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH THIS NOTE OR ANY
OTHER LOAN DOCUMENT, AND THE BORROWER AND THE LENDER AGREE THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A JUDGE AND NOT BEFORE A JURY. 
  

	19.	OFFSET RIGHTS 

 In addition to all liens upon and
rights of setoff against the money, securities, or other property of the Borrower given to the Lender by law, the Lender shall have a lien upon and a right of setoff against all money, securities, and other property of the Borrower, now or hereafter
in possession of or on deposit with the Lender, whether held in a general or special account or deposit, or safe-keeping or otherwise, and, following a Default, every such lien and right of setoff may be exercised without demand upon, or notice to
the Borrower. No lien or right of setoff shall be deemed to have been waived by any act or conduct on the part of the Lender, or by any neglect to exercise such right of setoff or to enforce such lien, or by any delay in so doing, and every right of
setoff and lien shall continue in full force and effect until such right of setoff or lien is specifically waived or released by an instrument in writing executed by the Lender. 
  

	20.	COMMERCIAL LOAN 

 The Borrower hereby represents and
warrants to the Lender that the Loan is being made for commercial or business purposes, and that the funds evidenced by this Note will be used solely in connection with such purposes. 
  

	21.	REPLACEMENT OR BIFURCATION OF NOTE 

 If this Note is
lost or destroyed, the Borrower shall, at the Lender’s request, execute and return to the Lender a replacement secured promissory note identical to this Note, provided the Lender delivers to the Borrower an affidavit to the foregoing effect.
Upon delivery of the executed replacement note, the Lender shall indemnify the Borrower from and against its actual damages suffered as a result of the existence of two Notes evidencing the same obligation. No replacement of this Note under this
Section shall result in a novation of the Borrower’s obligations under this Note. In addition, the Lender may at its sole and absolute discretion require that the Borrower execute and deliver two separate promissory notes, which shall replace
this Note as evidence of the Borrower’s obligations. The two replacement notes shall, taken together, evidence the exact obligations set forth in this Note. The replacement notes shall be independently transferable. If this Note is so replaced,
the Lender shall return this Note to the Borrower marked to evidence its cancellation. 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 9 of 12 Pages 

	22.	GOVERNING LAW 

 This Note shall be construed and
enforced according to, and governed by, the laws of Florida without reference to conflicts of laws provisions which, but for this provision, would require the application of the law of any other jurisdiction. 
  

	23.	TIME OF ESSENCE 

 In the performance of the
Borrower’s obligations under this Note, time is of the essence. 
  

	24.	AGREEMENT CONCERNING INTEREST 

 The provisions of
this Note and of the Mortgage now or hereafter existing are hereby expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of this Note or otherwise, shall the amount paid or agreed to be paid to the
Lender for the use, forbearance or detention of the sums evidenced by this Note exceed the maximum amount permissible under Florida law. If, from any circumstances whatsoever, the performance or fulfillment of any provision of this Note, or of the
Mortgage, at the time performance of such provision shall be due, shall exceed the limit of validity prescribed by law, then, ipso facto, the obligation to be performed or fulfilled shall be reduced to the limit of such validity, and, if from
any such circumstance, the Lender shall ever receive anything of value which is deemed to be interest by Florida law which would exceed the highest lawful rate, an amount equal to any excessive interest shall be applied to the reduction of the
principal amount of this Note or on account of any other principal indebtedness of the Borrower to the Lender and to the payment of interest thereon or, if such excessive interest exceeds the unpaid balance of principal of this Note and such other
indebtedness, such excess shall be refunded to the Borrower. 
  

	25.	NO ORAL AGREEMENTS 

 THIS NOTE AND ALL THE OTHER
LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE AGREEMENT OF THE BORROWER AND THE LENDER AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE LOAN AND MAY NOT BE CONTRADICTED
OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE BORROWER AND THE LENDER. THERE ARE NO ORAL AGREEMENTS BETWEEN THE BORROWER AND THE LENDER. THE PROVISIONS OF THIS NOTE AND THE OTHER LOAN DOCUMENTS
MAY BE AMENDED OR REVISED ONLY BY AN INSTRUMENT IN WRITING SIGNED BY THE BORROWER AND THE LENDER. 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 10 of 12 Pages 

	26.	AMENDED AND RESTATED RENEWAL NOTE 

 This Amended and
Restated Renewal Secured Promissory Note is given (a) in renewal and replacement of that certain “Restated Promissory Note (Revolving Line of Credit)” dated as of September 9, 2005 made by the Borrower in favor of Wachovia Bank,
National Association, a national banking association (“Assignor”) in the original principal amount of $11,000,000.00, as endorsed to the order of the Lender (the “Prior Note”), which evidences a revolving line of credit in the
principal amount of $11,000,00.00 and (b) to evidence an increase over the principal face amount of the Prior Note by the amount of $15,500,000.00 (the “Future Advance”). All Florida documentary stamps due on (x) the Prior Note
were paid on that certain “Mortgage, Assignment of Rents and Security Agreement and Financing Statement” executed by the Borrower in favor of Assignor, dated February 4, 2005 and recorded in Official Records Book 5419, Page 5280, of
the Public Records of Brevard County, Florida (the “Records”), and (y) this Note with respect to the Future Advance have been paid on the “Modification of Mortgage and Other Loan Documents and Notice of Future Advance” of
even Effective Date herewith made by the Borrower in favor of the Lender to be recorded in the Records. 
 [REMAINDER
OF PAGE INTENTIONALLY RESERVED.] 
  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 11 of 12 Pages 

 IN WITNESS WHEREOF, the Borrower has caused this Note to be duly executed as of the Effective Date. 
  

					
	CRYSTAL BAY, L.L.C., a Delaware limited liability company
		
	By:	 	 ASSET INVESTORS OPERATING PARTNERSHIP, L.P., a Delaware
 limited partnership, its sole Member

			
		 	By:	 	AMERICAN LAND LEASE,
		 		 	INC., a Delaware corporation,
		 		 	its sole General Partner
			
		 	By:	 	 /s/ Shannon E. Smith

		 		 	Shannon E. Smith
		 	As its:	 	Secretary, Treasurer, and Chief Financial Officer
		 		 	                        (CORPORATE
SEAL)
			
		 		 	“Borrower”

  

			
	 STATE OF FLORIDA
	  	)
	 COUNTY OF HILLSBOROUGH
	  	)

 THE FOREGOING INSTRUMENT was acknowledged before me this
             day of May, 2006, by Shannon E. Smith, in his capacity as the duly-elected Secretary, Treasurer, and Chief Financial Officer of American Land Lease, Inc., a Delaware
corporation, in its capacity as the sole General Partner of Asset Investors Operating Partnership, L.P., a Delaware limited partnership, in its capacity as the sole Member of CRYSTAL BAY, L.L.C., a Delaware limited liability company, on
behalf of the corporation, the partnership and the company. He is personally known to me. 
  

			
		 	  

		 	Signature of Notary Public
	 (Affix Notary Seal)
	 	  
  

		 	Type or Stamp Commissioned
		 	Name of Notary Public
		 	  
  

		 	Type or Stamp Commission Number and
		 	Commission Expiration Date

  

 Construction Loan to Crystal Bay, LLC 
 Sebastian Beach and Tennis Village 
 Brevard County, Florida 
 AEGON Loan No. 89721 
 Renewal Note 
 Page 12 of 12 PagesCredit Agreement

 Exhibit 4.1 
 Loan No. S0667F 
 FOURTH AMENDED AND RESTATED LINE OF CREDIT AGREEMENT 
 THIS FOURTH AMENDED AND RESTATED LINE OF CREDIT AGREEMENT (this “Agreement”) is made and entered into as of May 29, 2006, by and
between CoBANK, ACB (“CoBank”) and COMMONWEALTH TELEPHONE COMPANY (the “Borrower”). 
 WHEREAS, the
Borrower and CoBank have previously entered into that certain Third Amended and Restated Line of Credit Agreement, dated as of May 31, 2005 (the “Prior Agreement”); and 
 WHEREAS, CoBank and the Borrower desire to amend and restate in its entirety the Prior Agreement; and 
 WHEREAS, this Agreement, among other things, will extend the availability period for Loans hereunder and increase the available loan amount as
more fully provided herein. 
 SECTION 1. The Loan. On the terms and conditions set forth in this Agreement, and subject
to Section 11, CoBank agrees to make advances to the Borrower during the period commencing on May 29, 2006 and ending at 12:00 noon Eastern time on May 27, 2007 (the “Availability Period”) in an aggregate principal amount up
to $135,000,000 at any one time outstanding (the “Loan”). Within the limits of the Loan, the Borrower may borrow, repay and reborrow. 
 SECTION 2. Purpose and Use of Proceeds. The proceeds of the Loan shall be applied by the Borrower to refinance existing indebtedness of the Borrower and to finance capital expenditures, working capital and other general
corporate purposes of the Borrower. The Borrower agrees that the proceeds of the Loan shall be used for only the purpose set forth in this Section 2. 
 SECTION 3. Availability. Subject to Section 11, the advances under the Loan will be made on any day on which CoBank is open for business (a “Business Day”), except any day when
Federal Reserve Banks are closed, by wire transfer of immediately available funds to such account or accounts as the Borrower may designate, provided that (i) an authorized officer of the Borrower shall have provided CoBank with at least
one Business Day’s prior written notice of the date on which such advance under the Loan is to be made (each, a “Funding Date”), unless the Borrower elects to have a portion of the Loan accrue interest at a LIBOR Rate (as defined in
Section 4(A)(2)), in which case the Borrower shall have provided such notice two Banking Days (as defined in Section 4(A)(2)) prior to such Funding Date and such Funding Date shall be a Banking Day, and (ii) any Funding Date so
designated shall not be later than the last day of the Availability Period. A “Banking Day” means a Business Day on which dealings in U.S. dollar deposits are carried out in the London Interbank Market and banks are open for business in
New York, New York and London, England. 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 SECTION 4. Interest and Fees. 
 (A) The unpaid principal balance of the Loan shall accrue interest at the rate or rates selected by the Borrower in accordance with this Subsection
(A). 
 (1) Base Rate Option. As to any portion of the unpaid principal balance of the Loan selected by the
Borrower (any such portion, and any portion selected pursuant to Subsection (A)(2), is hereinafter referred to as a “Portion” of the Loan), interest shall accrue pursuant to this variable rate option at a variable annual interest rate
equal to the sum of the Base Rate (as hereinafter defined) minus 1.00%. “Base Rate” means a variable rate of interest per annum equal, on any day, to the higher of (i) CoBank’s Base Rate or (ii) the sum of Federal
Funds Rate plus 0.50%. “Federal Funds Rate” shall mean, for any day, the rate of interest per annum (rounded upward, if necessary, to the nearest whole multiple of 1/1000 of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided that (i) if such day
is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day and (ii) if no such rate is so published on the next succeeding Business Day, the Federal Funds Rate for such
day shall be the average rate quoted to CoBank on such day on such transactions as determined by CoBank. The term “Base Rate” shall mean the rate of interest established by CoBank from time to time as its Base Rate, which rate is intended
by CoBank to be a reference rate and not its lowest rate, and CoBank may charge other borrowers rates at, above, or below that rate. The Base Rate will change on the date established by CoBank as the effective date of any change thereof. 

(2) LIBOR Option. As to any Portion or Portions of the Loan selected by the Borrower, interest shall accrue pursuant to
this LIBOR option at a fixed annual interest rate (a “LIBOR Rate”) equal to the sum of LIBOR (as hereinafter defined) plus 0.625%. Under this option: (i) rates may be fixed for Interest Periods (as hereinafter defined) of one,
two, three, or six months, as selected by the Borrower; (ii) amounts fixed shall be in increments of $100,000 or multiples thereof; and (iii) rates may only be fixed on a Banking Day on three Banking Days’ prior written notice;
provided, however, that the LIBOR option shall not be available with respect to new advances during the continuance of any Default or Event of Default. “LIBOR” means the rate (rounded upward to the nearest sixteenth of one
percent and adjusted for reserves required on Eurocurrency Liabilities (as hereinafter defined) for banks subject to FRB Regulation D (as hereinafter defined) or required by any other federal law or regulation) quoted by the British Bankers
Association (the “BBA”) at 11:00 a.m. London time two Banking Days before the commencement of the Interest Period for the offering of U.S. dollar deposits in the London interbank market for the Interest Period designated by
the Borrower, as published by Bloomberg or another major information vendor listed on BBA’s official website. “Banking Day” shall mean a day on which CoBank is open for business, dealings in U.S. dollar deposits are being carried out
in the London interbank market, and 
  

 2 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 banks are open for business in New York City and London, England. “Interest Period” shall
mean the time period chosen by the Borrower during which the chosen fixed rate is to apply to a Portion of the Loan, which period commences on the day a rate fixed under this Subsection 4(A)(2) becomes effective. The Interest Period for Portions
accruing interest at the LIBOR option rate shall end on the day in the next calendar month or in the month that is one, two, three, or six months thereafter which corresponds numerically with the day the Interest Period commences; provided,
however, that: (a) in the event such ending day is not a Banking Day, such period shall be extended to the next Banking Day unless such next Banking Day falls in the next calendar month, in which case it shall end on the preceding
Banking Day; and (b) if there is no numerically corresponding day in the month, then such period shall end on the last Banking Day in the relevant month. No Interest Period shall extend beyond the Maturity Date (as defined in Section 5).
“Eurocurrency Liabilities” has the meaning as set forth in FRB Regulation D. “FRB Regulation D” means Regulation D as promulgated by the Board of Governors of the Federal Reserve System, 12 CFR Part 204, as amended from time to
time. 
 (3) Selection And Changes of Rates. The Borrower shall select the applicable interest rate option or
options at the time it gives CoBank written notice of the Funding Date for an advance pursuant to Section 3. The Borrower may, on any Banking Day, elect to have the LIBOR Rate apply to any Portion of the Loan then accruing interest at the Base
Rate. In addition, with respect to any Portion of the Loan accruing interest pursuant to the LIBOR Rate, the Borrower may, subject to Subsection (A)(2), two Banking Days prior to the last day of the Interest Period for such Portion, elect to fix the
interest rate accruing on such Portion for an Interest Period at a LIBOR Rate. In the absence of any such refix, interest shall automatically accrue on such Portion of the Loan at the Base Rate minus 1% as provided in Section 4(A)(1).
Notwithstanding the foregoing, in the event the Borrower elects to have any Portion of the Loan accruing interest at the LIBOR Rate and the last day of the Interest Period for such Portion is not a Banking Day, then interest shall accrue on such
Portion at the Base Rate minus 1% as provided in Section 4(A)(1) until the LIBOR Rate becomes effective. From time to time the Borrower may elect on a Business Day and upon payment of the Surcharge (as defined in, and calculated pursuant
to, Section 6), to convert all, but not part, of any Portion of the Loan accruing interest pursuant to the LIBOR Rate to accrue interest at the Base Rate or pursuant to the LIBOR Rate for another Interest Period selected in accordance with
Subsection (A)(2); provided, however, that any such conversion to a LIBOR Rate shall not be effective until two Banking Days after such election, which can only be made on a Banking Day. Except for the initial selection, all interest
rate selections provided for herein shall be made by telephonic or written request of an authorized employee of the Borrower by 12:00 noon, Eastern time, on the relevant day. In taking actions upon telephonic requests, CoBank is entitled to rely on
(and will incur no liability to the Borrower in acting upon) any request made by a person identifying himself or herself as one of the persons authorized by the Borrower to select interest rates hereunder; provided, however, that in
the case of LIBOR rate loans, all such selections must be confirmed in writing upon CoBank’s request. 
  

 3 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (4) Accrual of Interest. Interest shall accrue pursuant to any LIBOR
Rate selected by the Borrower from and including the first day of the applicable Interest Period to but excluding the last day of the Interest Period. If the Borrower elects to refix the interest rate on any Portion of the Loan pursuant to
Subsection (A)(3), the first day of the new Interest Period shall be the last day of the preceding Interest Period. In the absence of any such refix, interest shall accrue on such Portion at the Base Rate minus 1% as provided in
Section 4(A)(1) from and including the last day of such Interest Period. If the Borrower elects to convert from the LIBOR Rate to the Base Rate or to the LIBOR Rate upon payment of the Surcharge as provided in Subsection (A)(3), interest at the
existing LIBOR Rate shall accrue through the day before such conversion and either (i) the first day of any new Interest Period shall be the date of such conversion, or (ii) interest at the Base Rate shall accrue on the Portion of the Loan
so converted from and including the date of conversion. 
 (5) Rate Combinations. Notwithstanding the foregoing,
at any one time there may be no more than five Portions of the Loan in the aggregate accruing interest pursuant to the LIBOR option. 
 (B) Payment and Calculation. The Borrower will pay interest on the Loan (i) monthly in arrears on the 20th day of the following month (or on such other day in such month as CoBank will require in a written notice to the
Borrower); provided, however, in the event the Borrower elects to fix all or a portion of the indebtedness outstanding under the LIBOR interest rate option above, at CoBank’s option upon written notice to the Borrower, interest
will be payable at the maturity of the Interest Period and if the LIBOR interest rate fix is for a period longer than 3 months, interest on that Portion will be payable quarterly in arrears on each three-month anniversary of the commencement date of
such Interest Period, and at maturity of such Interest Period, (ii) upon any prepayment (whether due to acceleration or otherwise) and (iii) on the Maturity Date; provided, further, however, that if any such payment
date for accrued interest is not a Business Day, then the accrued interest then due shall be paid on the next Business Day. Interest will be calculated on the actual number of days the Loan, or any part thereof, is outstanding on the basis of a year
consisting of 360 days. In calculating accrued interest, the date the Loan is made will be included and the date any principal amount of the Loan is repaid or prepaid will be excluded as to such amount. 
 (C) Default Rate. After maturity, whether by reason of acceleration or otherwise, or upon the occurrence and during the continuation of an
Event of Default, including if the Borrower fails to make any payment or investment required to be made under the terms of this Agreement or the Note (including this Section 4), then, at CoBank’s option in each instance, the unpaid
principal balance of the Loan shall accrue interest at 2% per annum in excess of the Base Rate. All interest provided for in this Subsection (C) shall be payable on demand and shall be calculated from and including the date such payment
was due to but excluding the date paid on the basis of a year consisting of 360 days. 
 (D) Commitment Fee. In consideration
of the Loan, the Borrower shall pay a commitment fee on the average daily unused Portion of the Loan at the rate of 0.125% per annum 
  

 4 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (calculated on a 360-day basis), payable monthly in arrears by the twentieth (20th) day of the following month
(or such other day of such month as CoBank may require in written notice to the Borrower). Such fee shall be payable for each month (or portion thereof) occurring during the original or any extended term of the Loan. 
 SECTION 5. Principal Repayment and Maturity. The term of the Loan shall be from May 29, 2006 to May [27], 2007 (the
“Maturity Date”). On the Maturity Date, the amount of the then unpaid principal balance of the Loan and any and all other amounts due and owing hereunder or under any other Loan Document shall be due and payable. If the Maturity Date is
not a Business Day, then the principal installment then due shall be paid on the next Business Day and shall continue to accrue interest until paid. The Borrower shall have the right, upon at least three Business Days’ prior written notice to
CoBank, to permanently reduce or terminate the Loan, provided, however, no reduction or termination shall be permitted if, after giving effect thereto and to any prepayment made therewith, the aggregate principal balance of the Loan
then outstanding would exceed the Loan as so reduced. 
 SECTION 6. Prepayment. The Borrower may, on (i) one Business
Day’s prior written notice, prepay in full or in part, any Portion of the Loan accruing interest at the Base Rate, or (ii) on two Business Day’s prior written notice, prepay in full or in part, in minimum amounts of $100,000, any
Portion of the Loan accruing interest at the LIBOR Rate. Notwithstanding the foregoing, the Borrower’s right to prepay any Portion of the Loan accruing interest at the LIBOR Rate shall be conditioned upon the payment of a surcharge (the
“Surcharge”) equal to the present value of any funding losses incurred by CoBank as a result of such prepayment. The Surcharge, including the amount of any funding losses, shall be the greater of $300 or the amount determined and
calculated as follows: 
 (A) Determine the difference between: (i) CoBank’s cost of funds (determined in accordance with its
standard methodology) on the date the interest rate was fixed to fund the Portion of the Loan being prepaid; minus (ii) CoBank’s cost of funds (determined in accordance with such methodology) on the date of prepayment to fund a new
loan with a weighted average life equal to the weighted average life over the remainder of the selected Interest Period of the Portion of the Loan being prepaid. If such difference is negative, then no Surcharge other than $300 is payable.

 (B) If such difference is positive, divide the result determined in Subsection (A) by 12. 
 (C) For each month or part thereof during which the Portion of the Loan prepaid was scheduled to have been outstanding, multiply the amount
determined in Subsection (B) by that part of the Portion of the Loan prepaid that was scheduled to have been outstanding during such month (such that there is a monthly calculation for each month during which the Portion of the Loan prepaid was
scheduled to have been outstanding). 
  

 5 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (D) Determine the present value of each monthly calculation made under Subsection
(C) based upon the scheduled time that interest on the Portion of the Loan prepaid would have been payable and a discount rate equal to the rate set forth in Subsection (A)(ii). 
 (E) Add all of the calculations made under Subsection (D). The result shall be the Surcharge. 
 For purposes of calculating the Surcharge provided for in this Section 6, early conversion of a Portion of the Loan accruing interest pursuant to the LIBOR rate so
that it accrues interest at a different rate pursuant to Section 4(A)(3) shall be deemed a prepayment in full of that Portion of the Loan. 
 SECTION 7. Note. The Borrower’s obligation to repay the Loan shall be evidenced by an amended and restated promissory note, dated as of even date herewith, in form and content acceptable to CoBank (as the same may be
amended, modified, supplemented, extended or restated from time to time and any promissory note that may be issued from time to time in substitution, renewal, replacement or exchange therefor, the “Note”). 
 SECTION 8. Manner and Time of Payment. If any date on which payment is due hereunder is not a Business Day, the payment shall be made
on the next succeeding Business Day. The Borrower shall make each payment under this Agreement and under the Note by wire transfer of immediately available funds or by check. Wire transfers shall be made to ABA No. 307088754 for advice to and
credit of “CoBANK” (or to such other account as CoBank may designate by notice) with sufficient information to identify the source and application of such funds. The Borrower shall give CoBank telephonic notice no later than 12:00 noon,
Eastern time, of its intent to pay by wire transfer. Wire transfers received after 3:00 p.m., Eastern time, shall be credited on the next Business Day. Checks shall be mailed or delivered to CoBank at Department 167, Denver, Colorado 80291-0167 (or
to such other address as CoBank may designate by notice). Credit for payment by check will not be given until the next Business Day after receipt of the check or the actual receipt of immediately available funds, whichever is later. 
 SECTION 9. Capitalization. The Borrower agrees to purchase non-voting participation certificates in CoBank as CoBank may from time to
time require in accordance with its bylaws and capital plan (as each may be amended from time to time), except that the maximum amount of non-voting participation certificates that the Borrower may be required to purchase in connection with a loan
may not exceed the maximum amount permitted by the bylaws at the time the Agreement relating to such loan is entered into or such loan is renewed or refinanced by CoBank. In connection with the foregoing, the Borrower hereby acknowledges receipt,
prior to the execution of this Agreement, of CoBank’s bylaws, a written description of the terms and conditions under which the equity is issued, CoBank’s Loan-Based Capital Plan, CoBank’s most recent annual report, and if more recent
than CoBank’s latest annual report, its latest quarterly report. All such investments and all other equities which the Borrower may now own or hereafter acquire or be allocated in CoBank shall be subject to a statutory first lien in favor of
CoBank. 
  

 6 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 SECTION 10. Security. Except as provided in Section 9 hereof, the Loan shall
be unsecured. 
 SECTION 11. Conditions Precedent. CoBank’s obligation to make advances under the Loan hereunder is
subject to satisfaction of each of the following conditions precedent on or before any Funding Date: 
 (A) Loan Documents. That
CoBank receive on the date hereof duly executed originals of this Agreement, the Note, and all other instruments and documents contemplated hereby or thereby (collectively, the “Loan Documents”). 
 (B) Authorization. That CoBank receive on the date hereof copies of all corporate documents and proceedings of the Borrower authorizing the
execution, delivery, and performance of the Loan Documents, certified by the Secretary of the Borrower. 
 (C) Approvals. That
CoBank receive on the date hereof evidence satisfactory to it that all federal and state consents and approvals (including, without limitation, all regulatory approvals) which are necessary for, or required as a condition of, the validity and
enforceability of the Loan Documents. 
 (D) Opinion of Counsel. That CoBank receive on the date hereof an opinion of counsel
for the Borrower (who shall be acceptable to CoBank) in form and content acceptable to CoBank. 
 (E) Fees, Expenses and
Capital. That the Borrower pay the fees set forth in Section 4(D) hereof and the costs and expenses required by Section 20 hereof to be paid by the Borrower. 
 (F) Event of Default. That no Event of Default (as that term is defined in Section 15) exists, and that there has occurred no event
which with the passage of time or the giving of notice, or both, could become an Event of Default (each such event, a “Default”). 
 (G) Representations and Warranties. That the representations and warranties of the Borrower contained in this Agreement and any other Loan Document be true and correct in all material respects on and as of such Funding Date,
as though made on and as of such date. 
 (H) No Material Adverse Change. That from December 31, 2004 to such Funding Date
there shall not have occurred any material adverse change in the business, financial condition or results of operations of the Borrower (any such material adverse change is hereinafter referred to as a “Material Adverse Change”).

 (I) No Injunction. That no court or other government body or public authority shall have issued an order which shall then be
in effect restraining or prohibiting the completion of the transactions contemplated hereby. 
  

 7 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (J) Advance Certificate. That CoBank receive a certificate, in the form attached hereto
as Exhibit A, dated such Funding Date, signed by the President, Chief Financial Officer or Treasurer of the Borrower, certifying as to the truth and accuracy of the representations and warranties of the Borrower under the Loan Documents and
the satisfaction of each of the conditions applicable to the making of the Loan specified herein. 
 (K) Factual Matters. That
CoBank receive a certificate (the “Factual Matters Certificate”), in the form attached hereto as Exhibit B, dated such Funding Date, signed by the President, Chief Financial Officer or Treasurer of the Borrower, certifying as to the
matters set forth therein. 
 SECTION 12. Representations and Warranties. To induce CoBank to make advances hereunder, and
recognizing that CoBank is relying hereon, the Borrower represents and warrants, as of the date of this Agreement and as of each Funding Date, as follows: 
 (A) Organization; Power; Etc. The Borrower (i) is duly organized, validly existing, and in good standing under the laws of its state of incorporation; (ii) is duly qualified to do business and
is in good standing in each jurisdiction in which the character of its properties or the nature of its business requires such qualification and where the failure to be so qualified would result in a Material Adverse Change; (iii) has all
requisite corporate and legal power to own and operate its assets and to carry on its business and to enter into and perform its obligations under the Loan Documents; (iv) has duly and lawfully obtained and maintained all licenses,
certificates, permits, authorizations, approvals, and the like which are material to the conduct of its business or which may be otherwise required by law; and (v) is eligible to borrow from CoBank. 
 (B) Due Authorization; No Violations; Etc. The execution and delivery by the Borrower of, and the performance by the Borrower of its
obligations under, the Loan Documents have been duly authorized by all requisite corporate action on the part of the Borrower and do not and will not (i) violate any provision of any law, rule or regulation, any judgment, order or ruling of any
court or governmental agency, the articles of incorporation or bylaws of the Borrower, or any agreement, indenture, mortgage, or other instrument to which the Borrower is a party or by which the Borrower or any of its properties is bound, or
(ii) be in conflict with, result in a breach of, or constitute with the giving of notice or lapse of time, or both, a default under any such agreement, indenture, mortgage, or other instrument. All actions on the part of the shareholders of the
Borrower necessary in connection with the execution and delivery by the Borrower of, and the performance by the Borrower of its obligations under, the Loan Documents have been taken and remain in full force and effect as of the date hereof.

 (C) Consents. No consent, permission, authorization, order, or license of any governmental authority is necessary in
connection with the execution, delivery, performance, or enforcement of the Loan Documents except such as have been obtained and are in full force and effect, except to the extent that the failure to do so would not reasonably be expected to result
in a Material Adverse Change. 
  

 8 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (D) Binding Agreement. Each of the Loan Documents is, or when executed and delivered
will be, the legal, valid, and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, subject only to limitations on enforceability imposed by (i) applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting creditors’ rights generally, and (ii) general equitable principles. 
 (E)
Compliance with Laws. The Borrower is in compliance in all material respects with all federal, state, and local laws, rules, regulations, ordinances, codes, and orders (collectively, “Laws”), the failure to comply with which could
have a material adverse effect on the condition, financial or otherwise, operations, properties, or business of the Borrower, or on the ability of the Borrower to perform its obligations under the Loan Documents, except as the Borrower has disclosed
on Schedule 1 hereto. 
 (F) Environmental Compliance. Without limiting the provisions of Subsection (E), all property
owned or leased by the Borrower and all operations conducted by it are in compliance in all material respects with all Laws relating to environmental protection, the failure to comply with which could have a material adverse effect on the condition,
financial or otherwise, operations, properties, or business of the Borrower, or on the ability of the Borrower to perform its obligations under the Loan Documents, except as the Borrower has disclosed on Schedule 1 hereto. 
 (G) Litigation. There are no existing legal, arbitration, or governmental actions or proceedings to which the Borrower is a party or to
which any of its property is subject which could have a material adverse effect on the condition, financial or otherwise, operations, properties or business of the Borrower or on the ability of the Borrower to perform its obligations under the Loan
Documents, and to the best of the Borrower’s knowledge, no such actions or proceedings are threatened or contemplated. 
 (H)
Financial Statements; No Material Adverse Change; Etc. The unaudited financial statements of the Borrower for the fiscal quarter ended December 31, 2004, fairly and fully present in all material respects the financial condition of the
Borrower, and the results of the Borrower’s operations for the periods covered thereby and were prepared in accordance with generally accepted accounting principles (“GAAP”) consistently applied and any system of accounts to which the
Borrower is subject (except as otherwise disclosed therein). Since December 31, 2004, there has been no Material Adverse Change. All budgets, projections, feasibility studies, and other documentation submitted by the Borrower to CoBank were
based upon assumptions that management of the Borrower believed were reasonable and realistic at the time submitted, and as of the date hereof, management of the Borrower is unaware of any fact or event, other than the May 3, 2005 change in
dividend policies, which would cause any assumption made therein not to be reasonable or realistic in any material respect. 
 (I)
Principal Place of Business; Records. The principal place of business and chief executive office of the Borrower and the place where the records required by Section 13(G) are kept is at the address of the Borrower shown in
Section 19. 
  

 9 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (J) Subsidiaries. The Borrower has no subsidiaries, other than CTSI, LLC and CTE
Telecom LLC. 
 (K) Employee Benefit Plans. Except as disclosed on Schedule 1 hereto, the Borrower is in compliance in
all material respects with the applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, and the regulations and published interpretations thereunder. 
 (L) Taxes. The Borrower has filed or caused to be filed all federal, state and local tax returns that are required to be filed, and has
paid all taxes as shown on said returns or on any assessment received by the Borrower to the extent that such taxes have become due, or are being contested by the Borrower in good faith and by appropriate proceedings and then only to the extent
adequate reserves have been set aside on the Borrower’s books therefor. 
 (M) Investment Company Act; Public Utility Holding
Company Act. The Borrower is not an “investment company” as that term is defined in, and is not otherwise subject to regulation under, the Investment Company Act of 1940, as amended. The Borrower is not a “holding company” as
that term is defined in, and is not otherwise subject to regulation under, the Public Utility Holding Company Act of 1935, as amended. 
 (N) Use of Proceeds. The funds to be borrowed hereunder will be used only as contemplated hereby. No part of such funds will be used to purchase any “margin securities” or otherwise in violation of the regulations of
the Federal Reserve System. 
 (O) Factual Matters Certificate. The information about the Borrower contained in paragraphs 2
through 5 of the Factual Matters Certificate delivered to CoBank will be true and complete with respect to the matters addressed therein as of each Funding Date. Notwithstanding paragraph 1 of such Factual Matters Certificate, the representations
made in this Subsection (O) are not limited by the Borrower’s knowledge. 
 SECTION 13. Affirmative Covenants.
Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect the Borrower agrees to: 
 (A) Corporate
Existence. Preserve and keep in full force and effect its corporate existence and good standing in the jurisdiction of its incorporation, and its qualification to transact business and good standing in all places in which the character of its
properties or the nature of its business requires such qualification and where the failure to maintain such qualification would result in a Material Adverse Change. 
 (B) Compliance with Laws and Agreements. Comply in all material respects with (i) all Laws, the failure to comply with which could have a material adverse effect on its condition, financial or
otherwise, operations, properties, or business, or on its ability to perform its obligations under the Loan Documents; and (ii) all agreements, indentures, mortgages, and other instruments to which it is a party or by which it or any of its
property is bound. 
  

 10 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (C) Compliance with Environmental Laws. Without limiting the provisions of Subsection
(B), comply in all material respects with, and cause all persons occupying or present on any properties owned or leased by it to so comply with, all Laws relating to environmental protection, the failure to comply with which could have a material
adverse effect on its condition, financial or otherwise, operations, properties, or business, or on its ability to perform its obligations under the Loan Documents. 
 (D) Licenses; Permits; Etc. Duly and lawfully obtain and maintain in full force and effect all licenses, certificates, permits, authorizations, approvals, and the like which are material to the conduct
of its business or which may be required by Law. 
 (E) Insurance. Maintain insurance with insurance companies or associations
reasonably acceptable to CoBank in such amounts and covering such risks as are usually carried by companies engaged in the same or similar business and similarly situated. At the request of CoBank, all policies (or such other proof of compliance
with this Section 13(E) as may be reasonably satisfactory) shall be delivered to CoBank. 
 (F) Property Maintenance.
Maintain and preserve at all times its property, and each and every part and parcel thereof, in good repair, working order and condition, ordinary wear and tear excepted. 
 (G) Books and Records. Keep adequate records and books of account in accordance with GAAP consistently applied and any system of accounts to which the Borrower is subject. 
 (H) Inspection. Permit CoBank or its agents, upon prior notice, during normal business hours or at such other times as the parties may
agree, to examine its properties, books, and records, and to discuss its affairs, finances, operations, and accounts with its officers, directors, employees, and independent certified public accountants. Notwithstanding the provisions of
Section 20, any such examination not made in connection with the preservation or enforcement of CoBank’s rights and remedies hereunder and under the other Loan Documents shall be made at CoBank’s expense. 
 (I) Reports and Notices. Furnish to CoBank: 
 (1) Annual Financial Statements. As soon as available, but in no event later than 90 days after the end of each fiscal year of Commonwealth Telephone Enterprises, Inc. (“Parent”) occurring
during the term hereof, consolidated annual financial statements of the Parent on Form 10-K, which include all of its subsidiaries whose accounts are required to be consolidated with the Parent in accordance with GAAP, prepared in accordance with
GAAP consistently applied (except for changes with which the Parent’s independent public accountants concur). Such financial statements shall: (i) be audited by independent certified public accountants of recognized national standing
selected by the Parent; (ii) be accompanied by a report of such accountants containing an unqualified opinion acceptable to CoBank; (iii) be prepared in reasonable 
  

 11 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 detail and in comparative form for the preceding fiscal year; and (iv) include a balance sheet,
a statement of operations, a statement of changes in common shareholders’ equity, a statement of cash flows, and all notes and schedules relating thereto required by GAAP. In addition, such audited consolidated annual financial statements shall
be accompanied by an unaudited consolidating balance sheet as of the end of the Parent’s latest fiscal year, an unaudited consolidating statement of operations for the Parent’s latest fiscal year, and an unaudited consolidating statement
of cash flows for the Parent’s latest fiscal year, including all the operating divisions of the Parent, with a sub-total for the Borrower and all of its subsidiaries whose accounts are consolidated with it at the time in question in accordance
with GAAP (“Companies”). “Consolidated Basis” as used in this Agreement shall mean prepared on a consolidated basis for the Companies. 
 (2) Quarterly Financial Statements. As soon as available but in no event later than 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower occurring during
the term hereof, unaudited quarterly financial statements of each of the Companies and unaudited quarterly financial statements of the Companies prepared on a Consolidated Basis, in each case in accordance with GAAP consistently applied (except for
changes with which the Borrower’s independent public accountants concur) and any system of accounts to which the Companies are subject (except for the omission of footnotes and for the effect of normal year-end audit adjustments). Such
financial statements shall: (i) be prepared in reasonable detail and set forth in comparative form corresponding figures for the corresponding period of the preceding fiscal year, and (ii) include a balance sheet, a statement of income for
such quarter and for the period year-to-date, and such other quarterly statements of the Companies as CoBank may specifically request, which quarterly statements shall include any and all supplements thereto. 
 (3) Notice of Default. Promptly after becoming aware thereof, notice of (i) the occurrence of any Default or Event of
Default hereunder or under any other Loan Document, or (ii) the occurrence of any breach, default, event of default, or other event which with the giving of notice or lapse of time, or both, could become a breach, default, or event of default
under any agreement, indenture, mortgage, or other instrument (other than the Loan Documents) to which it is a party or by which it or any of its property is bound or affected if the effect of such breach, default, event of default, or other event
is to accelerate, or to permit the acceleration of, the maturity of any indebtedness under such agreement, indenture, mortgage, or other instrument; provided, however, that the failure to give such notice shall not affect the right and
power of CoBank to exercise any and all of the remedies specified herein. 
 (4) Notice of Non-Environmental
Litigation. Promptly after the commencement thereof, notice of the commencement of all actions, suits, or proceedings before any court, arbitrator, or governmental department, commission, board, bureau, agency, or instrumentality affecting the
Borrower as to which there is a reasonable possibility that it would have a material adverse effect on its condition, financial or otherwise, operations, properties, or business or on its ability to perform its obligations under the Loan Documents.

  

 12 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (5) Notice of Environmental Litigation. Without limiting the provisions
of Subsection (I)(4), promptly after receipt thereof, notice of the receipt of all pleadings, orders, complaints, indictments, or other communications alleging a condition that may require the Borrower to undertake or to contribute to a cleanup or
other response under Laws relating to environmental protection, or which seeks penalties, damages, injunctive relief, or criminal sanctions related to alleged violations of such Laws, or which claims personal injury or property damage to any person
as a result of environmental factors or conditions or as to which there is a reasonable possibility that it would have a material adverse effect on the condition, financial or otherwise, operations, properties, or business of the Borrower or on its
ability to perform its obligations under the Loan Documents. 
 (6) Regulatory and Other Notices. Promptly after
receipt thereof, copies of any filings or communications sent to or notices or other communications received from any governmental authority, including without limitation, the Pennsylvania Public Utility Commission (the “Commission”), the
Federal Communications Commission (the “FCC”), and the Securities and Exchange Commission (the “SEC”), relating to any noncompliance by the Borrower with any Law or with respect to any matter or proceeding the effect of which
could have a material adverse effect on its condition, financial or otherwise, operations, properties, or business or on its ability to perform its obligations under the Loan Documents. 
 (7) Material Adverse Change. Prompt notice of any matter which has resulted or could reasonably be expected to result in a
material adverse effect on the condition, financial or otherwise, operations, properties, or business of the Borrower or on its ability to perform its obligations under the Loan Documents. 
 (8) ERISA Reportable Events. Within 10 days after the Borrower becomes aware of the occurrence of any Reportable Event (as
defined in Section 4043 of ERISA) as to which there is a reasonable possibility that it would have a material adverse effect on the condition, financial or otherwise, operations, properties, or business of the Borrower, a statement describing
such Reportable Event and the actions proposed to be taken in response to such Reportable Event. 
 (9) SEC
Filings. Promptly upon the filing thereof, copies of any and all reports on Forms 10-K, 10-Q and 8-K and any and all proxy statements filed by Commonwealth Telephone Enterprises, Inc. (“CTE”) with the SEC. 
 (10) Other Information. Such other information regarding the financial or operational condition of the Borrower as CoBank
may, from time to time, reasonably request. 
  

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 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
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 (J) Financial Covenants. 
 (1) Total Leverage Ratio. Maintain at all times, on a Consolidated Basis, a Total Leverage Ratio not in excess of 3.0:1.0.
The term “Total Leverage Ratio” shall mean the ratio of Indebtedness to Operating Cash Flow. The term “Indebtedness” shall mean, without duplication, (i) obligations for borrowed money, (ii) obligations representing the
deferred purchase price of property or services other than accounts payable arising in connection with the purchase of inventory on terms customary in the trade, (iii) obligations, whether or not assumed, secured by liens or payable out of the
proceeds or production from property now or hereafter owned or acquired, (iv) obligations which are evidenced by notes, acceptances, or other instruments, (v) capitalized agreements, (vi) fixed rate hedging obligations that are due
(after giving effect to any period of grace or notice requirement applicable thereto) and remain unpaid, and (vii) fixed payment obligations under guaranties that are due and remain unpaid, all calculated on a Consolidated Basis. The term
“Operating Cash Flow” shall mean the sum of (a) pre-tax income, or deficit, as the case may be, excluding extraordinary gains or losses and the write up of any asset, (b) total interest expense (including non-cash interest),
(c) depreciation and amortization expense and other non-cash charges, (d) accrued and unpaid management fees, (e) minority interest, to the extent deducted in the calculation of pre-tax income, or deficit, and (f) non-recurring
transaction expenses incurred in connection with the negotiation and execution of the Loan Documents, all calculated on a Consolidated Basis. For purposes of determining any applicable ratio, Operating Cash Flow shall be measured for the then most
recently completed four fiscal quarters, adjusted to give effect to any acquisition, sale, or other disposition of any operation during the period of calculation, as if such acquisition, sale, or other disposition occurred on the first day of such
period of calculation. 
 (2) Interest Coverage Ratio. Maintain at all times, on a Consolidated Basis, an
Interest Coverage Ratio of at least 2.0:1.0. The term “Interest Coverage Ratio” shall mean the ratio derived by dividing (i) Operating Cash Flow by (ii) cash interest expense for the then most recently completed four fiscal
quarters (determined in accordance with GAAP). 
 (3) Equity to Total Capitalization Ratio. Maintain at all
times, on a Consolidated Basis, an Equity to Total Capitalization Ratio of not less than 25.0%. The term “Equity to Total Capitalization Ratio” shall mean the ratio derived by dividing (i) the amount derived by subtracting total
liabilities from total assets by (ii) the amount derived by subtracting total liabilities from total assets and adding total Indebtedness (determined in accordance with GAAP). 
  

 14 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 SECTION 14. Negative Covenants. Unless otherwise agreed to in writing by CoBank,
while this Agreement is in effect, the Borrower shall not: 
 (A) Borrowings. Create, incur, assume, or allow to exist, directly
or indirectly, any indebtedness or liability for borrowed money, for the deferred purchase price of property or services, or for the lease of real or personal property which lease is required to be capitalized under GAAP or which is treated as an
operating lease under regulations applicable to it but which otherwise would be required to be capitalized under GAAP (a “Capital Lease”), except for (i) obligations to CoBank, (ii) accounts payable to trade creditors and current
operating liabilities (other than for borrowed money) incurred in the ordinary course of its business, and (iii) (a) other unsecured obligations and (b) Capital Leases, so long as no Default or Event of Default exists at the time of, or
would result from, the creation, incurrence, assumption, or existence of any such obligation or Capital Lease referred to in this clause (iii). 
 (B) Liens. Create, incur, assume, or allow to exist any mortgage, deed of trust, deed to secure debt, pledge, lien (including the lien of an attachment, judgment, or execution), security interest, or other encumbrance of any
kind upon any of its property, real or personal. The foregoing restrictions shall not apply to (i) liens in favor of CoBank; (ii) liens for taxes, assessments, or governmental charges that are not past due, or are being contested in good
faith and by appropriate proceedings and then only to the extent adequate reserves have been set aside therefor; (iii) liens, pledges, and deposits under workers’ compensation, unemployment insurance, and social security laws;
(iv) liens, deposits, and pledges to secure the performance of bids, tenders, contracts (other than contracts for the payment of money), and like obligations arising in the ordinary course of its business as conducted on the date hereof;
(v) liens imposed by law in favor of mechanics, materialmen, warehousemen, lessors and like persons that secure obligations that are not past due, or are being contested in good faith and by appropriate proceedings and then only to the extent
adequate reserves have been set aside therefor; (vi) liens constituting encumbrances in the nature of zoning restrictions, easements, and rights or restrictions of record on the use of real property of the Borrower that do not materially
detract from the value of such real property or impair the use thereof in the business of the Borrower; and (vii) Capital Leases not secured by any property which is not subject to such lease. 
 (C) Mergers; Acquisitions; Etc. (i) Merge or consolidate with any other entity or (ii) acquire all or substantially all of the
assets of any person or entity, or form or create any new subsidiary, or commence operations under any other name, organization, or entity, including any joint venture; provided, however, that the Borrower may enter into any such
transaction described in this clause (ii) involving any entity or entities engaged in, or assets to be used by the Borrower in, the telecommunications business without the written agreement of CoBank if no Default or Event of Default exists at
the time of, or would occur as the result of, any such transaction, including, without limitation, any Event of Default as described in Section 15(C) and any Default occurring as the result of a breach of Subsection (F) or
Section 13(J). 
 (D) Transfer of Assets. Sell, transfer, lease, enter into any contract for the sale, transfer or lease
of, or otherwise dispose of, any of its assets; provided, however, that the Borrower may sell assets valued at less than $500,000 individually or $5,000,000 in the aggregate, and the Borrower may redeem, liquidate or otherwise dispose
of all of its Rural Telephone Bank stock and other equities. 
  

 15 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (E) Loans and Investments. After the date hereof, make any loan or advance to, invest
in, purchase, or make any commitment to purchase any stock, bonds, notes, or other securities of, or guarantee, assume, or otherwise become obligated or liable with respect to the obligations of, any person or entity (each, whether made directly or
indirectly, an “Investment”) in an amount in excess of $1,000,000 as to any single Investment or in excess of $5,000,000 as to all such Investments existing at any time, determined for the Companies, on a Consolidated Basis, other than
(i) stock or other securities of CoBank; (ii) Class C stock of the Rural Telephone Bank; (iii) securities or deposits issued, guaranteed, or fully insured as to payment by the United States of America or any agency or instrumentality
thereof; (iv) interest bearing deposit accounts (which may be represented by certificates of deposit) in national or state banks or savings and loan associations which have (or the parent of which has) outstanding securities rated by a
nationally recognized rating organization (a “Rating Agency”) in either of the two highest rating categories (without regard to modifiers) for short term securities or in any of the three highest rating categories (without regard to
modifiers) for long term securities or any equivalent successor rating category; (v) bankers’ acceptances drawn on and accepted by commercial banks which have (or the parent of which has) outstanding securities rated by a Rating Agency in
either of the two highest rating categories (without regard to modifiers) for short term securities or in any of the three highest rating categories (without regard to modifiers) for long term securities or any equivalent successor rating
categories; (vi) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, any State or Territory of the United States of America or the District of Columbia, or any political subdivision of
any of the foregoing, which are rated by a Rating Agency in either of the two highest rating categories (without regard to modifiers) for short term securities or in any of the three highest rating categories (without regard to modifiers) for long
term securities or any equivalent successor rating categories; (vii) commercial or finance company paper which is rated by a Rating Agency rated in any of the two highest rating categories (without regard to modifiers) for short term securities
or any equivalent successor rating categories; (viii) corporate debt securities or preferred stock rated by a Rating Agency in any of the three highest rating categories (without regard to modifiers) for long term securities or any equivalent
successor rating categories; and (ix) repurchase agreements with banking or financial institutions which have (or the parent of which has) outstanding securities rated by a Rating Agency in either of the two highest rating categories (without
regard to modifiers) for short term securities or in any of the three highest rating categories (without regard to modifiers) for long term securities or any equivalent successor rating categories with respect to any of the foregoing obligations or
securities. 
 (F) Change in Business. Engage in any business activities or operations substantially different from or
unrelated to the Borrower’s current business activities or operations. 
 (G) Disposition of Licenses. Sell, assign,
transfer, or otherwise dispose of, in any way, any registrations, licenses, franchises, grants, permits, or other governmental approvals necessary or useful in the operation of its business. 
  

 16 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (H) Dividends and Distributions. Make, declare, or pay any dividend or other distribution of
assets to shareholders of the Borrower during any fiscal year if a Default or Event of Default then exists or would occur as the result thereof. 
 (I) Transactions with Affiliates. Enter into any transaction with any affiliate except upon fair and reasonable terms no less favorable to it than would obtain in a comparable arm’s-length transaction with a person or entity
that was not an affiliate. 
 SECTION 15. Events of Default. Each of the following shall constitute an “Event of
Default” hereunder: 
 (A) Payment Default. The failure by the Borrower to make any payment of principal, interest, fees,
Surcharge or investment required to be made hereunder, under the Note, or under any other Loan Document when due, and such payment or investment is not made within five (5) Business Days thereafter. 
 (B) Representations and Warranties. Any representation or warranty made by the Borrower herein or in any other Loan Document, or any
factual statement made in the Factual Matters Certificate, shall prove to have been false or misleading in any material respect on or as of the date made. 
 (C) Certain Affirmative Covenants. The failure by the Borrower to perform or comply with any covenant set forth in Section 13 (other than Sections 13(A) and 13(I)(3), (4), (5), (6) and (7)),
and such failure continues for thirty (30) days after written notice thereof shall have been delivered by CoBank to the Borrower. 
 (D) Other Covenants and Agreements. The failure by the Borrower to perform or comply with any other covenant or agreement contained herein not covered under Subsection (C). 
 (E) Cross-Default. The occurrence of any breach, default, event of default, or event which with the giving of notice or lapse of time, or
both, would become a default or event of default under (i) any Loan Document other than this Agreement (subject to the applicable cure period contained therein), or (ii) the terms of any agreement (other than the Loan Documents) between
the Borrower and CoBank, including, without limitation, any guaranty, loan agreement, security agreement, mortgage, deed to secure debt, or deed of trust. 
 (F) Other Indebtedness. The occurrence of any breach, default, event of default, or event which with the giving of notice or lapse of time, or both, would become a default or event of default under any
agreement, indenture, mortgage, or other instrument by which the Borrower or any of its property is bound or affected (other than the Loan Documents) if the effect of such breach, default, event of default, or event is to accelerate, or to permit
the acceleration of, the maturity of any indebtedness in excess of $1,000,000 under such agreement, indenture, mortgage, or other instrument. 
  

 17 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 (G) Judgments. Judgments, decrees, or orders for the payment of money in an aggregate
amount in excess of $1,000,000 shall be rendered against the Borrower and either (i) enforcement proceedings shall have been commenced; or (ii) such judgments, decrees, and orders shall continue unsatisfied and in effect for a period of
forty-five (45) consecutive days without being vacated, discharged, satisfied, or stayed pending appeal. 
 (H) Insolvency,
Etc. The Borrower (i) shall become insolvent or shall generally not, or shall be unable to, or shall admit in writing its inability to, pay its debts as they come due; or (ii) shall suspend its business operations or a material part
thereof or make an assignment for the benefit of creditors; or (iii) shall apply for, consent to, or acquiesce in the appointment of a trustee, receiver, or other custodian for it or any of its property or, in the absence of such application,
consent, or acquiescence, a trustee, receiver, or other custodian is so appointed; or (iv) shall commence with respect to it or have commenced against it any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt,
dissolution, or liquidation law or statute of any jurisdiction; provided, however, that, with respect to any proceeding commenced against the Borrower, the Borrower shall have failed to obtain a dismissal, stay, or other nullification
within sixty (60) days after such commencement. 
 (I) Eligibility. The failure by the Borrower to maintain its
eligibility to borrow from CoBank. 
 SECTION 16. Remedies Upon Event of Default. 
 (A) Automatic Acceleration. Upon the occurrence of an Event of Default under Section 15(H), the entire unpaid principal balance of the
Note, all accrued interest thereon, and all other amounts payable under this Agreement, the Note, and all other agreements between CoBank and the Borrower shall become immediately due and payable, and CoBank’s commitment to make the Loan shall
terminate, without protest, presentment, demand, or further notice of any kind, all of which are hereby expressly waived by the Borrower. 
 (B) Termination; Acceleration; Etc. Upon the occurrence of an Event of Default other than under Section 15(H), upon notice to the Borrower, CoBank may terminate its commitment to make the Loan and may declare the entire
unpaid principal balance of the Note, all accrued interest thereon, and all other amounts payable under this Agreement and all other agreements between CoBank and the Borrower, to be immediately due and payable. Upon such a declaration, the unpaid
principal balance of the Note and all such other amounts shall become immediately due and payable, without protest, presentment, demand, or further notice of any kind, all of which are hereby expressly waived by the Borrower. 
 (C) Enforcement. Upon the occurrence of an Event of Default, CoBank may proceed to protect, exercise, and enforce such rights and remedies
as may be provided by agreement or under law including, without limitation, the rights and remedies provided for in the Note and any of the other Loan Documents. Each and every one of such rights and remedies shall be cumulative and may be exercised
from time to time, and no failure on the part of CoBank to exercise, and no delay in exercising, any right or remedy shall operate as a waiver 
  

 18 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 thereof, nor shall any single or partial exercise of any right or remedy preclude any other or future exercise
thereof, or the exercise of any other right. In addition, CoBank may hold and/or set off and apply against the Borrower’s indebtedness any and all cash, accounts, securities, or other property in CoBank’s possession or under its control.

 (D) Application of Payments. After acceleration of the Loan, all amounts received by CoBank shall be applied to the amounts
owing hereunder, under the Note, and the other Loan Documents in whatever order and manner as CoBank shall elect. 
 SECTION
17. Complete Agreement; Amendment. This Agreement, the Note, and the other Loan Documents are intended by the parties to be a complete and final expression of their agreement. No amendment, modification, or waiver of any provision
hereof or thereof, nor any consent to any departure of the Borrower herefrom or therefrom, shall be effective unless approved by CoBank and contained in a writing signed by or on behalf of CoBank, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given. 
 SECTION 18. Applicable Law. Except to the
extent governed by applicable federal law, this Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, without reference to choice of law doctrine. 
 SECTION 19. Notices. All notices hereunder shall be in writing and shall be deemed to be duly given (i) upon delivery, or if
delivered on a Saturday, Sunday or Holiday, on the first Business Day thereafter, if delivered by “Express Mail,” overnight courier, messenger or other form of hand delivery or sent by telegram or facsimile transmission, or (ii) three
days after mailing if sent by certified or registered mail, to the parties at the following addresses (or such other address for a party as shall be specified by like notice): 
  

			
	 If to CoBank, as follows:
  
 CoBank, ACB
 900 Circle 75 Parkway
 Suite 1400
 Atlanta, Georgia 30339-5946
 Attn: Communications and Energy Banking Group
 Fax No.: (770)
618-3202
	 	 If to the Borrower, as follows:
  
 Commonwealth Telephone Company
 100 CTE Drive
 Dallas, Pennsylvania 18612
 Attn: General Counsel
 Fax No.: (570) 631-2899

  

 19 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 SECTION 20. Costs and Expenses. The Borrower shall reimburse CoBank on demand for
all reasonable out-of-pocket costs and expenses incurred by CoBank in connection with the origination, negotiation, and preparation of this Agreement and all other Loan Documents, and the preservation and enforcement of CoBank’s rights and
remedies hereunder and thereunder, including, without limitation: (i) costs and expenses (including intangible and other taxes and any recording fees or expenses) incurred by CoBank to obtain, perfect, maintain, determine the priority of, or
release any security contemplated hereunder; and (ii) fees and expenses of any counsel retained or employed by CoBank to assist CoBank with respect to any matter contemplated by this Section or to review this Agreement and all other Loan
Documents and advise CoBank as to its rights and remedies hereunder or thereunder; and (iii) fees and expenses of any counsel retained or employed by CoBank to represent it in any litigation involving the parties hereto, including but not
limited to, bankruptcy, receivership, or similar proceedings. 
 SECTION 21. Effectiveness; Severability. This Agreement
shall continue in effect until all indebtedness and obligations of the Borrower hereunder and under all other Loan Documents shall have been fully and finally repaid or the Maturity Date, whichever is later. Any provision of the Loan Documents which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or thereof. The amendment and restatement of
the Prior Agreement set forth hereto shall be effective as of May 31, 2005. All obligations of the Borrower for the period prior to May 31, 2005 shall continue to be governed by the terms and provisions of the Prior Agreement. 

SECTION 22. Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Borrower and CoBank and
their respective successors and assigns, except that the Borrower may not assign or transfer its rights or obligations hereunder without the prior written consent of CoBank. Without the consent of, but with notice to, the Borrower, CoBank may
(i) sell participations to one or more banks or other entities in all or a portion of its rights and obligations under this Agreement, provided, however, that after any such sale of participations, the Borrower shall continue to
deal solely and directly with CoBank with respect to this Agreement and the other Loan Documents, or (ii) assign to one or more banks or other entities all or a portion of its rights and obligations under this Agreement. 
 SECTION 23. Consent to Jurisdiction. To the maximum extent permitted by law, the Borrower agrees that any legal action or proceeding
with respect to this Agreement or any of the other Loan Documents may be brought in the courts of the Commonwealth of Pennsylvania or of the United States of America for the Middle District of Pennsylvania, all as CoBank may elect. By execution of
this Agreement, the Borrower hereby irrevocably submits to each such jurisdiction, expressly waiving any objection it may have to the laying of venue by reason of its present or future domicile. Nothing contained herein shall affect the right of
CoBank to commence legal proceedings or otherwise proceed against the Borrower in any other jurisdiction or to serve process in any manner permitted or required by law. 
 SECTION 24. Regulatory Approvals. Upon any action by CoBank to commence the exercise of remedies hereunder, under any Note or any other Loan Document, the Borrower 
  

 20 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 hereby undertakes and agrees on behalf of itself and its Subsidiaries to cooperate and join with CoBank, and cause
its Subsidiaries to cooperate and join with CoBank, in any application to any Governmental Authority with respect thereto and to provide such assistance in connection therewith as CoBank may request, including, without limitation, the preparation of
filings and appearances of officers and employees of the Borrower or its Subsidiaries before such Governmental Authority, in each case in support of any such application made by CoBank, and neither the Borrower nor any of its Subsidiaries shall
directly or indirectly, oppose any such action by CoBank before any such Governmental Authority. 
 SECTION 25. Waiver of Jury
Trial. THE BORROWER AND COBANK HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT, OR ANY DEALINGS BETWEEN THEM RELATING TO THE
SUBJECT MATTER OF THIS AGREEMENT AND THE LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED. 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 THIS AGREEMENT, NOTE, AND ANY OTHER LOAN DOCUMENT, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE BORROWER AND COBANK ACKNOWLEDGE THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE BORROWER AND COBANK FURTHER
WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE LOAN DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS. IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. THE BORROWER AND COBANK ALSO WAIVE ANY BOND OR SURETY OR SECURITY UPON SUCH BOND WHICH MIGHT, BUT FOR THIS WAIVER, BE REQUIRED OF COBANK. 
 SECTION 26. Participations, Etc. From time to time, CoBank may sell to one or more banks, financial institutions or other lenders a
participation in one or more of the loans or other extensions of credit made pursuant to this Agreement and any Note. However, no such participation shall relieve CoBank of any commitment made to the Borrower hereunder. In connection with the
foregoing, CoBank may disclose information concerning the Borrower, its Subsidiaries and any guarantor of the Borrower’s obligation hereunder and under such Note, if any, to any participant or prospective participant, provided that such
participant or prospective participant agrees to keep such information confidential. CoBank agrees that all loans that are 
  

 21 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 made by CoBank and that are retained for its own account and are not included in a sale of a participation interest
shall be entitled to patronage distributions in accordance with the bylaws of CoBank and its practices and procedures related to patronage distribution. Accordingly, all loans that are included in a sale of a participation interest shall not be
entitled to patronage distributions. A sale of a participation interest may include certain voting rights of the participants regarding the Loan hereunder (including, without limitation, the administration, servicing and enforcement thereof).

 SECTION 27. Obligations Absolute. The obligation of the Borrower to make all payments required to be made under this
Agreement shall be independent of any action by the Commission with respect to rates and/or disallowance of debt. 
 SECTION
28. No Novation. Neither this Agreement nor the Note shall constitute a novation of any outstanding indebtedness under the promissory notes executed in connection with the Prior Agreement or any document or agreement executed or
delivered in connection therewith. 
 SECTION 29. Defined Terms. For convenience of reference, set forth below opposite
each defined term used in this Agreement is the location in this Agreement of the definition of such term: 
  

			
	 Defined Term
	  	 Location

	 Agreement
	  	 Introductory Paragraph

	 Banking Day
	  	 Section 3

	 Base Rate
	  	 Section 4(A)(1)

	 Borrower
	  	 Introductory Paragraph

	 Business Day
	  	 Section 3

	 Capital Lease
	  	 Section 14(A)

	 CoBank
	  	 Introductory Paragraph

	 Commission
	  	 Section 13(I)(6)

	 Companies
	  	 Section 13(I)(1)

	 Consolidated Basis
	  	 Section 13(I)(1)

	 CTE
	  	 Section 13(I)(9)

	 Default
	  	 Section 11(I)

	 Equity to Total Capitalization Ratio
	  	 Section 13(J)(3)

	 Event of Default
	  	 Section 15

	 Factual Matters Certificate
	  	 Section 11(N)

	 FCC
	  	 Section 13(I)(6)

	 Federal Funds Rate
	  	 Section 4(A)(I)

	 Funding Date
	  	 Section 3

	 GAAP
	  	 Section 12(H)

	 Governmental Authority
	  	 Section 16(E)

	 Indebtedness
	  	 Section 13(J)(1)

	 Interest Coverage Ratio
	  	 Section 13(J)(2)

  

 22 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

			
	Interest Period	  	Section 4(A)(2)
	Investment	  	Section 14(E)
	Laws	  	Section 12(E)
	LIBOR	  	Section 4(A)(2)(a)
	LIBOR Rate	  	Section 4(A)(2)(a)
	Loan	  	Section 1
	Loan Documents	  	Section 11(A)
	Material Adverse Change	  	Section 11(H)
	Maturity Date	  	Section 5
	Note	  	Section 7
	Operating Cash Flow	  	Section 13(J)(1)
	Payment Date	  	Section 5
	Portion	  	Section 4(A)(1)
	Prior Agreement	  	Preamble
	Rating Agency	  	Section 14(E)
	SEC	  	Section 13(I)(6)
	Surcharge	  	Section 6
	Total Leverage Ratio	  	Section 13(J)(1)

 SECTION 30. Counterparts. This Agreement may be executed by the parties hereto
in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
 [Signature Appears on the Following Page.] 
  

 23 

 Fourth Amended and Restated Line of Credit Agreement/Commonwealth 
 Loan No. S0667F 
  

 IN WITNESS WHEREOF, the Borrower has caused this Agreement to be executed, attested, sealed,
and delivered and CoBank has caused this Agreement to be executed and delivered, each by its duly authorized officers, as of the date first shown above. 
  

									
	CoBANK, ACB	 		 	COMMONWEALTH TELEPHONE COMPANY
					
	By:	 	 /s/ Gary P. Franke
	 		 	By:	 	 /s/ Donald P. Cawley

		 	Gary P. Franke, Vice President	 		 		 	Donald P. Cawley
		 		 		 		 	Executive Vice President and
		 		 		 		 	Chief Accounting Officer
					
		 		 		 	Attest:	 	 /s/ Raymond B. Ostroski

		 		 		 		 	Raymond B. Ostroski
		 		 		 		 	Senior Vice President, General
		 		 		 		 	Counsel and Corporate Secretary
					
		 		 		 		 	[CORPORATE SEAL]

  

 24 

 SCHEDULE 1 
 EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 
 AND OTHER MATTERS 
 Section 12(E) - “Compliance with Laws”: None 
 Section 12(F) - “Environmental Compliance”: None 
 Section 12(K) - “Employee Benefit Plans”: None 

 EXHIBIT A 
 LOAN CERTIFICATE - LOAN NO. S0667F 
 THIS CERTIFICATE is given by
                    , the
                                        
of COMMONWEALTH TELEPHONE COMPANY (the “Borrower”), pursuant to Section 11(J) of that certain Fourth Amended and Restated Line of Credit Agreement, dated as of May 29, 2006, by and between the CoBank, ACB and the Borrower
(the “Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement. 
 I hereby certify as follows: 
 1. I am the
                                        
                     of the Borrower and as such possess the knowledge and authority to certify to the matters herein set forth, and the matters
herein set forth are true and accurate to the best of my present knowledge, information and belief after due inquiry; 
 2. The
representations and warranties of the Borrower contained in the Agreement and any other Loan Document are true and correct in all material respects on and as of the date hereof; and 
 3. Each of the conditions specified in Section 11 of the Agreement required to be satisfied on or prior to the date of the making of the Loan under
the Agreement has been fulfilled as of the date hereof. 
 IN WITNESS WHEREOF, I have executed this Certificate as of
    , 200  . 
  

			
	By:	 	  

	Name:	 	  

	Title:	 	  

 EXHIBIT B 
 FACTUAL MATTERS CERTIFICATE - LOAN NO. S0667F 
 This CERTIFICATE is given by
                    , the
                                        
of COMMONWEALTH TELEPHONE COMPANY (“Commonwealth”), pursuant to Section 11(K) of that certain Fourth Amended and Restated Line of Credit Agreement, dated as of May 29, 2006, by and between CoBank, ACB (“CoBank”)
and Commonwealth (the “Agreement”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Agreement. 
 I hereby certify that as of the date of this Certificate: 
 1. I am the
                                        
                     of Commonwealth and as such I (i) am familiar with the Agreement and all other Loan Documents and (ii) possess the
authority to certify to the matters herein set forth, and the matters herein set forth are true and accurate to the best of my present knowledge, information and belief after due inquiry. 
 2. Attached hereto as Annex A are copies of all orders, writs, judgments, injunctions or decrees of any court, arbitrator or governmental agency
or body, (i) the terms of which would be violated by the execution, delivery and performance of or (ii) which would materially affect or purport to affect the validity and binding effect of, or the ability of Commonwealth to perform its
obligations under, the Loan Documents. 
 3. Attached hereto as Annex B is a list of all actions, suits, proceedings, inquiries or
investigations, at law or in equity, before or by any court, arbitrator or governmental agency or body against or affecting Commonwealth (and are any such actions, suits, proceedings, inquiries or investigations threatened or for which there is any
reasonable basis), (i) which would enjoin, restrain or prohibit or obtain damages in respect of the execution, delivery and performance of the Loan Documents or (ii) which would materially affect or purport to affect the validity and
binding effect of Commonwealth’s obligations under the Loan Documents or the ability of Commonwealth to perform its obligations thereunder. 
 4. Attached hereto as Annex C is a list of all indentures, loan or credit agreements, leases, mortgages, security agreements, bonds, notes, obligations and other contracts, agreements or instruments to which Commonwealth is a party,
or by which it or any of its property is bound or which would materially affect or purport to affect the validity and binding effect of the obligations under the Loan Documents or the ability of Commonwealth to perform its obligations thereunder.

 5. The authorized capital stock of Commonwealth consists of 2,000,000 shares of common stock, $6.66 par value, of which 1,267,629 shares
are issued and outstanding. All of the issued and outstanding shares of capital stock of Commonwealth have been duly authorized and validly issued, are fully paid and non-assessable, and there are no outstanding options, warrants, rights, calls,
commitments, conversion rights, plans or other agreements providing for the purchase or issuance of any authorized but unissued shares of capital stock of Commonwealth. None of the issued and outstanding shares of capital stock of Commonwealth were
issued in violation of preemptive rights. 

 IN WITNESS WHEREOF, I have executed this Certificate as of     ,
200  , for the purpose of inducing CoBank to make the Loan and with the understanding that CoBank has relied on the truth and accuracy of the statements made herein. 
  

			
	By:	 	  

	Name:	 	  

	Title:

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