Document:

Prepared by R.R. Donnelley Financial -- Acknowledgement and Consent for HCPI/Utah II

 EXHIBIT 4.8 
  
 ACKNOWLEDGMENT AND CONSENT 
  
 THIS ACKNOWLEDGMENT AND CONSENT (this “Agreement”)
dated as of June 12, 2002 is by and among Merrill Lynch Private Finance Inc., a Delaware corporation (“Lender”), The Boyer Company, L.C., a Utah limited liability company (“Borrower”), HCPI/Utah II, LLC, a Delaware limited
liability company (the “Down REIT Sub”), each of the entities that is affiliated with Borrower and that is a signatory hereto under the designation “Pledgor” (individually and collectively, as the context requires,
“Pledgor”), and Health Care Property Investors, Inc., a Maryland corporation (“HCPI”). 
  
 RECITALS:

  
 1.    Each Pledgor is a Non-Managing Member of the Down REIT Sub pursuant to that certain
Amended and Restated Limited Liability Company Agreement of HCPI/Utah II, LLC, dated as of August 17, 2001, as amended (the “LLC Agreement”). Further, each Pledgor is the record owner of the number of Non-Managing Member Units, as set
forth opposite such Pledgor’s name on Exhibit A attached hereto (collectively, the “Pledged Units”). As of the date of this Agreement, the Pledged Units are evidenced by the LLC Unit Certificates referred to on Exhibit A
(collectively, the “Certificates”). All references herein to the Pledged Units shall include all additional or substituted Non-Managing Member Units, from time to time pledged to Lender pursuant to the Loan Agreement, as defined below, and
all references herein to the Certificates shall include the Certificates related to such additional or substituted Non-Managing Member Units. 
  
 2.    Lender is a party to that certain Loan and Collateral Account Agreement (Demand Loan), dated as of the date hereof, by and among Borrower, Pledgor, Lender and Merrill Lynch,
Pierce, Fenner & Smith Incorporated (as such agreement has been or may hereafter be amended, supplemented or otherwise modified from time to time, the “Loan Agreement”), whereby Lender has agreed to lend to Borrower from time to time,
on a revolving basis, an amount not to exceed $20,000,000 as presently established. 
  
 3.    Pursuant to the Loan Agreement, the loan contemplated therein is secured by, inter alia, (i) all of Pledgor’s right, title and interest in the Pledged Units, and (ii) all of Pledgor’s right, title
and interest in the Registration Rights Agreement dated as of August 17, 2001, as amended, among each Pledgor and HCPI, and those certain other Registration Rights Agreements between each Pledgor and HCPI with respect to certain of the Pledged Units
(individually and collectively, referred to herein as the “Registration Rights Agreement”). The loan contemplated in the Loan Agreement is also secured, pursuant to the Loan Agreement, by similar collateral security pertaining to
HCPI/Utah, LLC, a Delaware limited liability company (“HCPI/Utah, LLC”) as confirmed in the Acknowledgment and Consent, dated as of the date hereof (the “Utah I Acknowledgment and Consent”), among Lender, Borrower, HCPI,
HCPI/Utah, LLC and certain other pledgors specified therein. 
  
 4.    The parties hereto desire
to enter into this Agreement for the purpose of setting forth certain agreements among Lender, Borrower, Pledgor, HCPI and the Down REIT Sub with respect to the Collateral. 
 

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 5.    Capitalized terms used but not otherwise defined herein
shall have the respective meanings ascribed to them in the LLC Agreement. 
  
 NOW, THEREFORE, in consideration of the
mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  

	1.
	 
	Definitions.    As used in this Agreement, the following terms shall have the meanings hereinafter set forth unless the context shall
otherwise require. 
 

  

	 	a.
	 
	“Collateral” shall mean, collectively, the Pledged Units, the Pledged Shares and any and all securities issued or issuable on the conversion or
redemption of the Pledged Units or Pledged Shares, or cash or other distributions of every kind in respect of any of the foregoing. 
 

  

	 	b.
	 
	“Commission” shall mean the Securities and Exchange Commission. 
 

  

	 	c.
	 
	“Default” shall mean a Remedy Event as defined in the Loan Agreement or a demand under Section 8.3 of the Loan Agreement. 

  

	 	d.
	 
	“Material Adverse Effect” shall mean (i) an adverse condition or event material to, (ii) a material adverse effect on, or (iii) a material adverse
change in, as the case may be, any one or more of the following: (A) the business, assets, results of operations, financial condition or prospects of HCPI or the Down REIT Sub, as the case may be, or (B) the ability of HCPI or the Down REIT Sub, as
the case may be, to perform its obligations under any material contract to which it is a party. 
 

  

	 	e.
	 
	“Pledged Shares” shall mean REIT Shares which are exchanged by HCPI for any Pledged Units which are tendered to HCPI, as the Managing Member of the
Down REIT Sub, pursuant to the exchange provisions set forth in Section 8.6 of the LLC Agreement, as the same are amended as provided in Section 7.b.i below. 
 

  

	 	f.
	 
	“Registration Rights” shall mean a Pledgor’s rights under the Registration Rights Agreement, as supplemented and modified in Section 7.b below.

 

  

	 	g.
	 
	“S-3 Expiration Date” means the date on which Form S-3 (or a similar successor form of registration statement) is not available to HCPI for the
registration of REIT Shares pursuant to the Securities Act. 
 

  

	 	h.
	 
	“Securities Act” shall mean the Securities Act of 1933, as amended. 
 

  

	2.
	 
	Acknowledgment of Pledge, etc. 
 

  

	 	a.
	 
	HCPI and the Down REIT Sub hereby agree, acknowledge and approve, as being subject to, but complying with Section 11.3 of the LLC Agreement, (i) the grant

 

 

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 by Pledgor to Lender of a security interest in the Collateral pursuant to the Loan Agreement, and (ii) subject to Section
7.a below, the Transfer, to Lender or other purchaser at foreclosure, of the Pledged Units upon foreclosure (or transfer in lieu of foreclosure, with each reference herein to foreclosure to include such a transfer) thereon by Lender under or
pursuant to the Loan Agreement; provided, however, that such acknowledgement and approval of the Down REIT Sub is not, and shall not be construed to be, the consent to or approval of any other Transfer in the event Lender or other purchaser at
foreclosure becomes the owner of any of the Pledged Units. HCPI agrees to note in its and the Down REIT Sub’s books and records that the undersigned Pledgors have granted to Lender security interests in the Collateral and agrees that upon
delivery to HCPI by Lender of the Certificates evidencing ownership of the Pledged Units, together with original unit powers duly executed by Pledgor in blank in the form attached hereto as Exhibit B, if requested by Lender, HCPI will register in
its books and records, or the books and records of the Down REIT Sub, ownership of such Pledged Units in the name of Lender or its nominee. HCPI agrees that it will not register the Pledged Units (or any entitlement to any dividend, distribution or
other proceeds thereof) into the name of any person other than the Pledgor listed as the owner thereof on Exhibit A attached hereto, or recognize any person other than such Pledgor as the owner of such Pledged Units, without the prior written
consent of Lender. 
  

	 	b.
	 
	HCPI and the Down REIT Sub agree that notwithstanding Section 11.3.D of the LLC Agreement, they will not require an opinion of counsel in order for the Down
REIT Sub and HCPI to recognize the Pledgor’s pledge of the Pledged Units and the grant of a security interest to Lender in the Collateral. 
 

  

	 	c.
	 
	HCPI and the Down REIT Sub hereby acknowledge receipt of copies of the Instructions to Register Security Interest attached hereto as Exhibit C (the
“Instructions”) and the notice of Lender’s security interest contained therein and agree to comply with the terms of the Instructions. 
 

  

	 	d.
	 
	HCPI and the Down REIT Sub hereby agree that by virtue of Lender holding a security interest in the Pledged Units (i) Lender does not and shall not become a
Substituted Member under Section 11.4 of the LLC Agreement unless and until Lender forecloses on the Pledged Units and (ii) Lender does not and shall not undertake any obligations or liabilities of Pledgor of any nature whatsoever pertaining to the
Pledged Units or under the LLC Agreement, both before or after any foreclosure by Lender on the Pledged Units. 
 

  

	 	e.
	 
	HCPI and the Down REIT Sub acknowledge and agree that upon the execution and delivery to Lender by the Pledgors of this Agreement, the Loan Agreement and all
schedules hereto and thereto to which the Pledgors are parties, and the Certificates, the Pledgors will not be required to sign any other documents or take any other action with respect to the Transfer of the Pledged Units to Lender in connection
with the exercise of Lender’s rights under this Agreement. 
 

 

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	 	f.
	 
	The parties acknowledge and agree that Lender and Borrower may from time to time further modify the Loan Agreement, including by way of adding additional
entities as Pledgors thereunder and/or by adding additional Non-Managing Member Units as Pledged Units. Any such additional entities added as Pledgors and/or any existing Pledgors who pledge additional Pledged Units shall concurrently acknowledge
their status as parties to this Agreement on such terms and with the same force and effect as if each such entity had originally executed and delivered same. Lender shall give written notice thereof to the Down REIT Sub, HCPI and each Pledgor
contemporaneously with any such modification of the Loan Agreement; no written consent or other acknowledgement shall be required from any entity to which such notice is sent as a condition to the effectiveness of the foregoing. Such notice shall
include such further amendment and restatement of Exhibit A to this Agreement as necessary in order to reflect the additional Pledged Units of each such entity added as an additional Pledgor and/or the additional Pledged Units of each such existing
Pledgor. Following such notification from Lender, each reference to “Pledgor” in this Agreement shall be understood to include for all purposes any such entity so added to the Loan Agreement. 
 

  

	3.
	 
	Notices.    Unless and until HCPI has received written notice from Lender to the effect that Lender no longer claims any interest in
the Collateral, (a) HCPI shall send to Lender a copy of each notice sent to holders of LLC Units by HCPI under the LLC Agreement as and when it delivers such notice to Pledgor, including any notice of Reduction pursuant to Section 8.6.D of the LLC
Agreement, and (b) at the written request of Lender, HCPI shall send to Lender a copy of each other communication, report or other information from time to time sent to Pledgor as holder of the Pledged Units or Pledged Shares. 

  

	4.
	 
	Amendments to Registration Rights Agreement and the LLC Agreement.    Unless and until HCPI has received written notice from Lender
to the effect that Lender no longer claims any interest in the Collateral, (a) no amendment of, termination of, or supplement to, the Registration Rights Agreement shall be effective without the prior written consent of Lender, and (b) no amendment
of, termination of or supplement to the LLC Agreement for which the consent of any Pledgor is required shall be effective without the prior written consent of Lender, which consent shall not be unreasonably withheld; provided that if written
disapproval is not received from Lender within 10 Business Days following receipt by Lender of a written request to approve such amendment (which request shall specifically reference the time limitation imposed by this Section 4), then Lender’s
approval of such amendment shall be deemed to have been given. 
 

  

	5.
	 
	Distributions, etc. 
 

  

	 	a.
	 
	Following receipt by the Down REIT Sub of written notice (which notice shall specifically reference this Section 5 of this Agreement) from Lender that a Default
has occurred and is continuing (a “Default Notice”): (i) upon the written instruction of Lender and until instructions to the contrary are received from Lender, the Down REIT Sub shall remit to Lender all cash distributions otherwise
payable to Pledgor in respect of the Pledged Units, and HCPI shall remit to 
 

 

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 Lender all cash dividends otherwise payable to Pledgor in respect of the Pledged Shares, of any nature, and (ii) upon the
written instruction of Lender and until instructions to the contrary are received from Lender, all rights of Pledgor to exercise the voting or other consensual rights that Pledgor would otherwise be entitled to exercise in respect of the Collateral
shall cease, and all such rights (and any other rights Pledgor may have in respect of the Collateral) shall thereupon become vested in Lender, which shall have the sole right to exercise such rights, until further notice from Lender. With respect to
cash distributions payable during such time as no event of Default is occurring, each Pledgor hereby directs the Down REIT Sub and/or HCPI, as the case may be, and the Down REIT Sub and/or HCPI, as the case may be, agrees to deposit any and all such
dividends and distributions in the following account as set forth in Section 3.1. of the Loan Agreement: 43JO7293. Any amounts paid to the Lender or its designee as contemplated by the terms of the foregoing shall be treated as amounts paid or
distributed to Pledgor for all purposes of the LLC Agreement, or other agreement pursuant to which the payment or distribution is made or is required to be made and shall be deemed to satisfy the obligations of the Down REIT Sub or HCPI to make such
payment thereunder. Each Pledgor hereby agrees that neither the Down REIT Sub nor HCPI shall be deemed to be in breach of its obligations under, or in violation of the provisions of, any such agreement by virtue of having made such payments in the
foregoing manner. 
  

	 	b.
	 
	From and after the date of this Agreement, and whether or not a Default has occurred and is continuing, if Pledgor shall become entitled to receive, in
connection with any of the Collateral, any: 
 

  

	 	i.
	 
	LLC Units or stock certificates (including, without limitation, stock certificates relating to the Pledged Shares), including, without limitation, any
certificates (1) issued in respect of additional properties contributed by such Pledgor to the Down REIT Sub, or (2) representing a dividend or distribution or issued in connection with any increase or reduction of capital, reclassification, merger,
consolidation, sale of assets, combination of shares or partnership units, stock or partnership units split, spin-off, or split-off; 
 

  

	 	ii.
	 
	Options, warrants, rights or other securities or instruments, whether as an addition to, or in substitution or in exchange for, any of the Collateral, or
otherwise; 
 

  

	 	iii.
	 
	Dividends or distributions payable in property other than cash, including securities issued by other than the issuer of any of the Collateral; or 

  

	 	iv.
	 
	Any sums paid in redemption of any of the Collateral, 
 

  
 then HCPI shall deliver the same to Lender, to be held by Lender as part of the Collateral. Any amounts paid to the Lender or its designee as contemplated by the terms of the foregoing shall be treated
as amounts paid or distributed to 
 

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 Pledgor for all purposes of the LLC Agreement, or other agreement pursuant to which the payment or distribution is made
or is required to be made and shall be deemed to satisfy the obligations of the Down REIT Sub or HCPI to make such payment thereunder. Each Pledgor hereby agrees that neither the Down REIT Sub nor HCPI shall be deemed to be in breach of its
obligations under, or in violation of the provisions of, any such agreement by virtue of having made such payments in the foregoing manner. 
  

	6.
	 
	Registration Rights and Registration Statements.    In the name of and on behalf of Pledgor, Lender shall have the right to exercise
Pledgor’s Registration Rights with respect to any Pledged Units then owned by Pledgor and held by Lender, including without limitation (i) subject to the terms and conditions of the Registration Rights Agreement, the right to enforce the
applicable provisions of the Registration Rights Agreement pertaining to HCPI’s obligation to file with the commission a registration statement on Form S-3 (the “Issuance Registration Statement”) covering, among other things, the
issuance to Lender of REIT Shares issued or to be issued by the Down REIT Sub upon exchange of the Pledged Units attached hereto and naming Lender as a “Selling Shareholder” thereunder and (ii) the right to request, at the times and in the
manner set forth in the Registration Rights Agreement, HCPI to register for sale under the Securities Act any Pledged Shares issuable or issued upon exchange of Pledged Units; provided, however, that, in the case of a Demand Registration pursuant to
Section 3.1(a) of the Registration Rights Agreement, the Down REIT Sub agrees that Lender shall not be subject to the once-every-twelve-months limitation set forth in clause (i) thereof (provided that if at any time Lender has exercised a Demand
Registration right in the previous twelve month period, for which the Down REIT Sub or HCPI has paid the expenses thereof, as provided in Section 3.4 of the Registration Rights Agreement, Lender shall pay the expenses described in Section 3.4 of the
Registration Rights Agreement in connection with the filing of such Demand Registration), nor shall Lender be subject to the $1,000,000 minimum requirement referred to in clause (ii) thereof if Lender is exercising Demand Registration Rights with
respect to all of the Pledged Shares it owns or has the right to acquire upon an Exchange. Pledgor hereby irrevocably appoints Lender as his attorney-in-fact to exercise any such Registration Rights, and irrevocably instructs HCPI to honor any such
exercise by Lender of Pledgor’s Registration Rights. 
 

  

	7.
	 
	Rights upon Remedy Events. 
 

  

	 	a.
	 
	Restrictions on Transfer.    Upon foreclosure of any Pledged Units, the Lender shall be entitled to Transfer such Pledged Units, in
whole or in part, subject to applicable restrictions set forth in Section 11.3 through 11.6 of the LLC Agreement; provided, however, that HCPI and the Down REIT Sub acknowledge and agree that (i) the provisions of Section 11.6.C shall not apply to
any foreclosure by Lender on any Pledged Units, (ii) to the extent any such restrictions require the consent of HCPI or the Down REIT Sub, HCPI and the Down REIT Sub hereby provide their consent to such foreclosure, (iii) if Lender or a purchaser of
Pledged Units at foreclosure is prohibited from becoming a Substituted Member of HCPI, Lender or such purchaser may become an Assignee 
 

 

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 in accordance with such restrictions, (iv) the Down REIT Sub shall conduct its business in the ordinary course in
accordance with past practices, and (v) neither Lender nor any purchaser of Pledged Units or Pledged Shares at foreclosure shall be obligated to assume, or otherwise be responsible for, any obligation a Pledgor may have under the LLC Agreement or
any other obligation of Pledgor accrued prior to foreclosure under the LLC Agreement; provided that nothing in this subclause 7.a.(v) shall release or reduce any prior obligations of a Pledgor to HCPI or the Down REIT Sub, it being acknowledged and
agreed by the Down REIT Sub or HCPI that the Down REIT Sub and HCPI have recourse against any such Pledgor only and not against Lender. HCPI further acknowledges and agrees that the aforesaid restrictions do not apply to Pledged Shares. Lender
acknowledges and agrees that the Pledged Shares are subject to certain restrictions on ownership and transfer as set forth in the Charter of the HCPI, as amended from time to time. 
  

	 	b.
	 
	Exchange of Pledged Shares; Foreclosure.    In addition to (i) Lender’s rights under Section 5 of this Agreement, (ii)
Lender’s rights as a pledgee, transferee or Assignee at foreclosure of LLC Units or a Membership Interest as provided in the LLC Agreement, and (iii) any and all other rights Lender may have in respect of a Default under any other agreement,
document or instrument, or under applicable law, upon the occurrence of any one or more Defaults (including, without limitation, the right of Lender to exercise its rights under the Loan Agreement to foreclose on or acquire the entire interest of
Pledgor in all or any portion of any Collateral), Lender shall thereupon and thereafter during the continuance thereof have the right, in its sole and absolute discretion, to do or cause to be done any one or more of the following: 

  

	 	i.
	 
	Exchange of Registered Pledged Units. 
 

  

	 	    
	 
	Lender shall have the right, upon written notice to the Down REIT Sub and in the name of and on behalf of Pledgor, to exercise Pledgor’s exchange rights
and require HCPI to exchange all or any portion (as selected and in such order as Lender may elect in its sole discretion) of the Registered Pledged Units in accordance with Section 8.6.A of the LLC Agreement (the “Exchange Rights”). Any
request for such exchange shall be made on the form of Notice of Exchange attached hereto as Exhibit D. Pledgor hereby irrevocably appoints Lender as its attorney-in-fact to exercise such Exchange Rights, and irrevocably instructs the Down REIT Sub
and HCPI to honor any such exercise by Lender of the Exchange Rights. HCPI hereby agrees that upon any such exercise of the Exchange Rights, HCPI shall deliver the entire Cash Amount or REIT Shares to Lender, in each case without deduction in
respect of any claim which HCPI or the Down REIT Sub may from time to time have of any nature or kind against Pledgor (other than with respect to any withholding tax obligation imposed by law on the Down REIT Sub with respect to any amount
distributable or allocable to a Pledgor in respect of Registered Pledged Units, as contemplated in Section 5.3 of the LLC Agreement). 
 

 

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	In addition to the foregoing, the second sentence of Section 8.6.A of the LLC Agreement is hereby amended with respect to Lender to provide that notwithstanding
the first sentence of Section 8.6.A of the LLC Agreement, after, or concurrently with, receipt by HCPI of any Default Notice, the Lender shall have the right to (i) tender Registered Pledged Units for Exchange (subject to the following terms and
conditions of Section 8.6.A of the LLC Agreement) and require the Down REIT Sub to acquire up to the number of Registered Pledged Units specified in the Notice of Exchange as referred to in the definition of “Specified Exchange Date” set
forth in subparagraph (c) immediately following; provided, however that Lender may tender Registered Pledged Units for Exchange hereunder once, irrespective of the aggregate market value of such Registered Pledged Units, and an unlimited number of
times, provided the aggregate market value of such Registered Pledged Units is at least $1,000,000 on the date of any such Notice of Exchange. 
 

  

	 	    
	 
	In connection with the foregoing, the definition of the term “Specified Exchange Date” in the LLC Agreement shall, with respect to Lender and only
with respect to Lender, be amended to read as follows: 
 

  
 “Specified Exchange Date”
means in the case of an Exchange pursuant to Section 8.6.A hereof, that date specified by Lender in a Notice of Exchange to the Company; provided, however, that such date shall in no event be less than fourteen (14) days (or if such day is
not a Business Day, the next following Business Day) after HCPI’s receipt of such Notice of Exchange and provided further that the Specified Exchange Date, as well as the closing of an Exchange on the Specified Exchange Date, may be deferred in
the Managing Member’s sole and absolute discretion, for such time as may be reasonably required to effect, as applicable, (i) necessary funding arrangements, (ii) compliance with the Securities Act or other applicable laws (including, but not
limited to, (a) state “blue sky” or other securities laws and (b) the expiration or termination of the applicable waiting period, if any, under the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, and (iii) satisfaction or
waiver of other commercially reasonable and customary closing conditions and requirements for a transaction of such nature (provided that in no event shall such Exchange be delayed more than 30 days in the aggregate with respect to (i) and (iii)
above, or more than 150 days in the aggregate with respect to (ii) above. 
 

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	 	ii.
	 
	Put for Unregistered Pledged Units. 
 

  

	 	    
	 
	Until such time as HCPI has filed, pursuant to Section 6 of this Agreement, the Issuance Registration Statement, Lender shall have the right upon written notice
to HCPI in the form of Deficiency Notice attached hereto as Exhibit E (a “Deficiency Notice”), to exchange all or any portion of the Unregistered Pledged Units for one or more cash payments from HCPI on any foreclosure of the Unregistered
Pledged Units, where the cash or fair market value of Pledged Shares (determined based on the closing price of the REIT Shares on the date of the Deficiency Notice, as reported on the New York Stock Exchange or such other exchange on which the REIT
Shares are then listed) issued on exchange of Registered Pledged Units will be insufficient to satisfy Borrower’s Obligations (as defined in the Loan Agreement) under the Loan Agreement, in an amount (the “Unregistered Units Cash
Payment”) equal to (i) the fair market value of such Unregistered Pledged Units (determined based on the closing price of the REIT Shares on the date of the Deficiency Notice on the New York Stock Exchange or such other exchange on which the
REIT Shares are then listed), multiplied by (ii) the number of such Unregistered Pledged Units exchanged, less (iii) 1% of the product of (i) and (ii). Each Unregistered Units Cash Payment shall be payable by HCPI within 14 days following its
receipt of the Deficiency Notice with respect thereto; provided, however, that at such time as Lender receives written notice from HCPI of the filing and effectiveness of the Issuance Registration Statement, Lender’s rights pursuant to this
Section 7.b.ii shall terminate with respect to any such Unregistered Pledged Units covered by such registration, so long as such registration remains effective. In the event and to the extent that any registration statement with respect to any
Pledged Units ceases to be effective, the provisions of this Section 7.b.ii shall again apply with respect to all affected Pledged Units and/or Pledged Shares. 
 

  

	 	    
	 
	Notwithstanding the provisions of Section 7.b.ii above, but subject to Section 7.b.iii below and Section 7.b.iii of the Utah I Acknowledgement and Consent,
Lender agrees that to the extent Lender has the right to exchange Registered Pledged Units under either this Agreement or under the Utah I Acknowledgment and Consent on or before the specified date in the applicable Notice of Exchange, Lender shall
exercise any and all such exchange rights hereunder and thereunder, prior to delivering a Deficiency Notice under Section 7.b.ii above. 
 

 

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	 	iii.
	 
	Put for Exchange Delays in Pledged Units.    Notwithstanding anything to the contrary in this Agreement, in the event that the
Specified Exchange Date under Section 7.b.i is deferred to a date that is later than the date specified in the applicable Notice of Exchange and where the cash or fair market value of the Pledged Units (determined based on the closing price of the
REIT Shares on the date of the Deficiency Notice on the New York Stock Exchange or such other exchange on which the REIT Shares are then listed), if any, which may be exchanged on or before the specified date in the applicable Notice of Exchange
will be insufficient to satisfy Borrower’s Obligations (as defined in the Loan Agreement) under the Loan Agreement, Lender shall have the right, upon providing a Deficiency Notice to HCPI, to exchange all or any portion of the affected Pledged
Units for one or more cash payments from HCPI in an amount (the “Exchange Delay Cash Payment”) equal to (i) the fair market value (determined based on the closing price of the REIT Shares on the date of the Deficiency Notice on the New
York Stock Exchange or such other exchange on which the REIT Shares are then listed) of such affected Pledged Units, multiplied by (ii) the number of such affected Pledged Units to be exchanged, less (iii) 1% of the product of (i) and (ii). Each
Exchange Delay Cash Payment shall be payable by HCPI within 14 days following its receipt of the Deficiency Notice with respect thereto. 
 

  

	 	    
	 
	In addition, the parties hereto agree and acknowledge that the obligation of HCPI, HCPI/Utah, LLC and/or the Down REIT Sub, as the case may be, to make
Unregistered Units Cash Payments and/or Exchange Delay Cash Payments under this Section 7 and under Section 7 of the Utah I Acknowledgment and Consent shall not exceed, in the aggregate, $20,000,000. 
 

  

	 	iv.
	 
	Concurrent Exercise.    The rights exercisable by Lender under this Section 7.b may be invoked before or after foreclosure under the
Loan Agreement in Lender’s sole discretion, and all without further notice to or any requirement of consent by Pledgor, which hereby irrevocably and unconditionally waives any right to give any contrary instructions to HCPI. All parties
acknowledge that Lender desires to consummate any necessary foreclosure under the Loan Agreement on a basis that such foreclosure occurs concurrent with the closing of an Exchange; all parties agree to cooperate reasonably with Lender to that end.
HCPI agrees that it will not act on any separate instructions or communications from Pledgor pertaining to the Pledged Units or Pledged Shares or Registration Rights Agreement without the express written consent of Lender. Nothing in this
subparagraph (v) shall in any way obligate Lender to consummate any necessary foreclosure under the Loan Agreement in the manner referred to above; Lender may, in its sole discretion, determine that another method of realization upon the Collateral
is preferable or required, and such determination by Lender shall in no manner limit or restrict the obligations 
 

 

 10 

	 	    
	 
	of Borrower, Pledgor or any other person or entity with respect to the loans contemplated herein. 
 

  

	 	v.
	 
	Foreclosure.    Subject to the terms and conditions of the Loan Agreement, Lender shall have the right to foreclose on or acquire the
entire interest of Pledgor in all or any portion of any Pledged Shares (including all of Pledgor’s right, title and interest in the Registration Rights Agreement to the extent applicable to such Pledged Shares) owned by Pledgor, by foreclosure
or in any other manner. In the event that Lender elects to exercise its rights under this Section 7.b.v, Lender shall deliver to HCPI a notice of its intent to do so no later than 10 Business Days prior to the date of any sale, public or private, or
of any transfer in lieu of foreclosure, and HCPI (without limitation on its own right, under applicable law, to participate in any sale or other disposition of any of the Collateral) shall reasonably cooperate, at no expense to itself, with Lender
in completing its foreclosure on the affected Pledged Shares in compliance with applicable laws, including, if applicable, all actions reasonably necessary to comply with the filing requirements described in Rule 144(c)(1) of the Securities Act, so
as to enable the Lender to sell such Pledged Shares without registration under the Securities Act. 
 

  

	8.
	 
	Representations and Warranties by the Down REIT Sub and HCPI.    The Down REIT Sub and HCPI hereby represent and warrant to Lender as
follows as of the date hereof: 
 

  

	 	a.
	 
	LLC Agreement.    A true and correct copy of the LLC Agreement as in effect as of the date hereof is attached as Exhibit F hereto.

 

  

	 	b.
	 
	Organization And Authority of the Down REIT Sub.    The Down REIT Sub has been duly formed, is validly existing as a limited
liability company in good standing under the laws of the State of Delaware, and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires
such qualification except where the absence of such qualification would not have a Material Adverse Effect. The Down REIT Sub has all requisite power and authority to own or hold under lease the property it purports to own or hold under lease, to
carry on its business as now conducted and as proposed to be conducted except as would not have a Material Adverse Effect, and to execute and deliver this Agreement and to perform its obligations hereunder. 
 

 

	 	c.
	 
	Authorization by the Down REIT Sub; Binding Effect.    The Down REIT Sub has by all necessary action duly authorized (i) the
execution and delivery of this Agreement and (ii) the performance of its obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of the Down REIT Sub, enforceable against it in accordance with its terms, except as
enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally. 
 

 

 11 

  

	 	d.
	 
	Pledged Units; Managing Member of the Down REIT Sub.    All of the Pledged Units are validly issued and non-assessable. The identity
of the registered owners, the total number of Pledged Units and the corresponding Certificates evidencing ownership thereof are accurately set forth on Exhibit A attached hereto. No security interest in the Pledged Units has been registered on the
records of the Down REIT Sub (or its transfer agent). HCPI is the sole Managing Member of the Down REIT Sub and owns the only Managing Member Units thereof. 
 

  

	 	e.
	 
	Organization and Authority of HCPI.    HCPI is a corporation duly organized, validly existing and in good standing under the laws of
Maryland, and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification except where the absence of such qualification
would not have a Material Adverse Effect. HCPI has all requisite power and authority to own or hold under lease the property it purports to own or hold under lease, to carry on its business as now conducted and as proposed to be conducted except as
would not have a Material Adverse Effect, and to execute and deliver this Agreement and to perform its obligations hereunder. 
 

  

	 	f.
	 
	No Claims.    To their knowledge, neither HCPI nor the Down REIT Sub has any existing claim, defense, setoff or right of recoupment
under the LLC Agreement, any other agreement, or any law, rule or regulation, against or with respect to (i) any of the Pledged Units, (ii) any of REIT Shares that may be issuable or any amount that may be payable in connection with the exchange of
any Pledged Units or (iii) any obligation of Pledgor under the LLC Agreement or any other agreement with respect to any of the Pledged Units, any of the REIT Shares that may be issued or any amount that may be payable in connection with the
redemption of any Pledged Units. 
 

  

	 	g.
	 
	Authorization by HCPI; Binding Effect.    HCPI has by all necessary action duly authorized the execution and delivery of this
Agreement and the performance of its obligations hereunder. This Agreement constitutes the legal, valid and binding obligation of HCPI, enforceable against it in accordance with its terms, except as enforcement may be limited by equitable principles
and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally. 
 

  

	 	h.
	 
	HCPI Status.    HCPI is organized in conformity with the requirements for qualification as a real estate investment trust under the
Code and its ownership and method of operation enables it to meet the requirements for taxation as a real estate investment trust under the Code. 
 

  

	 	i.
	 
	No Conflict.    The execution, delivery and performance by HCPI of this Agreement, and the consummation of the transactions
contemplated hereby, do not and will not violate any provision of the charter or bylaws of HCPI, or the LLC Agreement, or any contractual or other undertaking by which HCPI or any 
 

 

 12 

  
 of its assets are bound. As of the date of this Agreement, the Pledged Units are
not evidenced by writing or certificate except by the Certificates expressly referred to on Exhibit A hereto. 
  

	 	j.
	 
	Registration Rights Agreement.    A true and complete copy of the Registration Rights Agreement, including any amendments and
supplements thereto, is attached to this Agreement as Exhibit G. The Registration Rights Agreement remains in full force and effect as of the date of this Agreement, and is the legal, valid and binding obligation of HCPI enforceable against it in
accordance with its terms, except as enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally. 
 

 

	 	k.
	 
	Governmental or Other Approvals.    No governmental or other approval is or will be required in connection with the execution,
delivery and performance by the Down REIT Sub or HCPI of this Agreement or the transactions contemplated hereby or to ensure the legality, validity or enforceability hereof. 
 

  

	9.
	 
	Representations and Warranties by Pledgor.    To its knowledge, Pledgor does not have any existing claims, defenses, setoff rights or
rights of recoupment under the LLC Agreement, under any other agreement, or any law, rule or regulation, against or with respect to any obligation of either HCPI or the Down REIT Sub under the LLC Agreement or any other agreement. 

  

	10.
	 
	Compliance with Securities Laws.    Lender, Borrower and Pledgor hereby acknowledge that a portion of the Collateral has not been
registered for sale under the Securities Act, that Lender may be unable to effect a public sale (under applicable provisions of the Uniform Commercial Code) of all or any part of the Collateral, and subject to the restrictions on transfer described
above, may be compelled to resort to one or more private sales to a restricted group of purchasers who will be obligated to agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to the
distribution or resale thereof. Lender and Pledgors hereby further acknowledge that any such private sales may be at prices and on terms less favorable than those of public sales. 
 

  

	11.
	 
	Liability to Pledgor.    Pledgor and Borrower assume all risks of the acts or omissions of Lender with respect to its exercise of its
rights hereunder. Neither the Down REIT Sub, HCPI, nor any of their officers, directors, partners, employees or agents shall be liable or responsible for any acts or omissions of the Lender, including without limitation the validity of any
determination by Lender that a Default has occurred or is continuing, nor shall any of such persons have any responsibility for investigation into the facts and circumstances giving rise to any such determination by Lender, nor shall any such person
be liable or responsible for following the instructions of Lender in accordance with this Agreement regardless of any notice, information or instructions to the contrary received by HCPI from Pledgor or any other person, including without limitation
following instruction of Lender (a) to remit distributions by the Down REIT Sub made in respect of the Pledged Units, and distributions of HCPI made in respect of Pledged Shares, to 
 

 

 13 

 Lender, pursuant to Section 5 above, (b) to terminate the voting and/or other consensual rights of Pledgor (and consider
such right to have vested in Lender) pursuant to Section 5 above, (c) to exercise Pledgor’s Exchange Rights in the name of and on behalf of Pledgor pursuant to Section 7 above, or (d) to exercise Pledgor’s Registration Rights in the name
of and on behalf of Pledgor, pursuant to Section 6 above. 
  

	12.
	 
	Separate Actions; Waiver of Statute of Limitations.    The obligations of HCPI and Pledgor hereunder shall be in addition to any
obligations of Pledgor under the Loan Agreement. Without limiting the provisions of the Loan Agreement, a separate action or actions may be brought and prosecuted against any one or more of the parties hereto whether or not action is brought against
any other person or whether any other person is joined in any such action or actions. HCPI and Pledgor acknowledge that there are no conditions precedent to the effectiveness of this Agreement and that this Agreement is in full force and effect and
is binding on such person as of the date hereof. To the extent permitted under applicable law, Pledgor waives the benefit of any statute of limitations affecting such person’s liability hereunder or the enforcement thereof. Lender hereby agrees
that neither the Down REIT Sub nor HCPI shall have any obligation or liability under the Loan Agreement or any other agreement related to the loan contemplated by the Loan Agreement except as expressly set forth herein and in the Instructions.
Pledgor agrees that nothing set forth herein shall alter, diminish or otherwise affect its obligations under the LLC Agreement or any other agreement between Pledgor and HCPI or the Down REIT Sub relating to the Pledged Units or Pledged Shares.

 

  

	13.
	 
	Continuing Obligations.    Borrower and Pledgor shall indemnify and hold harmless Lender from and against any and all obligations,
claims, losses, liabilities, damages, expenses or costs (including reasonable attorneys’ fees and expenses and fees and expenses of expert witnesses) arising from or in any way connected with the obligations or liabilities of either such person
with respect to agreements, documents or other instruments, whether now existing or hereafter incurred, or the conditions and obligations to be observed and performed by Borrower or Pledgor under any agreement, document or other instrument relating
to the Collateral, except for those arising from Lender’s gross negligence or willful misconduct. In addition, Borrower shall indemnify and hold harmless Lender from and against any and all obligations, claims, losses, liabilities, damages,
expenses or costs (including reasonable attorneys’ fees and expenses and fees and expenses of expert witnesses) arising from or in any way connected with the exercise by Lender of any rights or remedies under the Loan Agreement or this
Agreement with respect to the Collateral, including, without limitation, all costs and expenses associated with the exercise of any foreclosure rights and/or exchange rights pursuant to Section 6.b above or otherwise. 

  

	14.
	 
	Appointment as Attorney-in-Fact.    Pledgor hereby appoints Lender as its true and lawful attorney-in-fact, with full power of
substitution, for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instruments either in the name of Pledgor or in the name of Lender, which such attorney-in-fact may deem necessary or advisable to
accomplish the purposes hereof, which appointment as attorney-in-fact is irrevocable and coupled with an interest; provided, that nothing in this section shall require the Lender to take any action or execute any instruments. 

 

 14 

  

	15.
	 
	Notices.    Any notice, demand, request or report required or permitted to be given or made to a party to this Agreement shall be in
writing and shall be deemed given or made when delivered in person or when sent by first class United States mail or by other means of written communication (including by telecopy, facsimile, or commercial courier service) (a) in the case of a
Pledgor, to that Pledgor at the address set forth below and (ii) in the case of each other party, at its address for notices set forth below or at such other address as such party may give notice of in accordance with the provisions of this Section:

 

  
 
	 Borrower and each Pledgor:
 	  	 c/o The Boyer Company, L.C.
 127 South 500 East, Suite 100
 Salt Lake City, Utah 84102
 Attention: Brian Gochour
 Telephone No.:
801-521-4781
 Telecopier: 801-521-4793
 
	 
	 Lender:
 	  	 Merrill Lynch Private Finance Inc.
 2049 Century Park East, Suite 1100
 Los Angeles, CA 90067
 Attention: Jay D. Sanders
 Telephone No.:
310-407-4943
 Telecopier: 310-284-2835
 
	 
	 HCPI and/or Down REIT Sub:
 	  	 Health Care Property Investors, Inc.
 4675 MacArthur Court, Suite 900
 Newport Beach, California 92660
 Attention: Legal Department
 Telephone No.:
(949) 221-0600
 Telecopier: (949) 221-0607
 

 
  

	16.
	 
	Assignments.    This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns. Nothing contained herein, express or implied, is intended to confer on any person other than the parties hereto or their respective successors and assigns, any rights, remedies, obligations or liabilities
under or by reason of this Agreement. 
 

  

	17.
	 
	Governing Law.    This Agreement and the legal relations between the parties hereto shall be governed by and construed in accordance
with the internal laws of the State of New York applicable to contracts made and to be performed in that State, without regard to conflict of laws principles. 
 

  

	18.
	 
	Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original but
all of which together shall constitute but one agreement. This Agreement may be executed and delivered by facsimile. 
 

  

	19.
	 
	Entire Agreement; Amendments.    This Agreement (including the instruments between the parties referred to herein) constitutes the
entire agreement among the parties and supersedes all other prior agreements and understandings, both written and oral, among 
 

 

 15 

 the parties, or any of them, with respect to the subject matter hereof. All references to sections, subsections, clauses,
exhibits and schedules shall be deemed references to such part of this Agreement, unless the context shall otherwise require. No provisions of this Agreement may be effectively waived, changed or amended, or the termination or discharge thereof
agreed to or acknowledged, orally, but only by an agreement in writing signed by the party against whom the enforcement of any waiver, change, amendment, termination or discharge is sought. 
  

	20.
	 
	Headings.    The headings contained in this Agreement are inserted for convenience only and do not constitute a part of this
Agreement. 
 

  

	21.
	 
	Invalidity.    If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall
nevertheless remain in full force and effect. 
 

  

	22.
	 
	Attorneys’ Fees.    In the event of any controversy, claim or dispute between the parties hereto arising out of or relating to
this Agreement or any of the documents provided for herein, or the breach thereof, the prevailing party shall be entitled to recover from the losing party reasonable attorneys’ fees, expenses and costs. 
 

 
 [Remainder of page intentionally left blank.] 
  
 

 16 

  
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the date first written above. 
  
 
	 LENDER:
 
	 
	 MERRILL LYNCH PRIVATE FINANCE INC.,
 a Delaware corporation

	 
	 By:
 	 	 /s/    AUTHORIZED SIGNATORY
 

	 Date:
 	 	 6/12/02
 

	 Title:
 	 	 Director
 

 
  
 
	 BORROWER:
 
	 
	 THE BOYER COMPANY, L.C.,
 a Utah limited liability company
 
	 
	 By:
 	 	 /s/    STEVE OSTLER
 

	 Date:
 	 	 6/12/02
 

	 Title:
 	 	 Manager
 

 
  
 
	 THE DOWN REIT SUB:
 
	 
	 HCPI/UTAH II, LLC,
 a Delaware limited liability company
 
	 
	 By:
 	 	 HEALTH CARE PROPERTY INVESTORS, INC., its Managing Member
 
	 
	  	 	 By:
 	 	 /s/    EDWARD J. HENNING
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Senior Vice President
 

 
  
 
	 HCPI:
 
	 
	 HEALTH CARE PROPERTY INVESTORS, INC.,
 a Maryland corporation

	 
	 By:
 	 	 /s/    EDWARD J. HENNING
 

	 Date:
 	 	 6/12/02
 

	 Title:
 	 	 Senior Vice President
 

 
 

 17 

  
 
	 PLEDGORS:
 
	 
	 BOYER-FOOTHILL ASSOCIATES, LTD.,
 a Utah limited partnership

	 
	 By:
 	 	 THE BOYER COMPANY, L.C., 
 its General Partner
 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
  
 
	 BOYER KAYSVILLE ASSOCIATES, L.C.,
 a Utah limited liability
company
 
	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its Manager
 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
  
 
	 BOYER OLD MILL II, L.C.,
 a Utah limited liability company
 
	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its Manager
 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
  
 
	 BOYER RANCHO VISTOSO, L.C.,
 a Utah limited liability company

	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its Manager
 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
 

 18 

  
 
	 PLEDGORS: 
 
	 
	 BOYER-RESEARCH PARK ASSOCIATES,
 LTD., a Utah limited
partnership
 
	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its General Partner 
 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager 
 

 
  
 
	 
	 BOYER RESEARCH PARK ASSOCIATES VI,
 L.C., a Utah limited liability company

 
	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its Manager

 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
  
 
	 
	 BOYER TATUM HIGHLANDS DENTAL CLINIC,
 L.C., a Utah limited liability
company
 
	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its Manager

 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
 

 19 

 
	 PLEDGORS: 
 
	 
	 BOYER STANSBURY II, L.C.,
 a Utah limited liability company 

	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its Manager

 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
  
 
	  
	 
	 BOYER-ALTA VIEW ASSOCIATES, LTD.,
 a Utah limited partnership

	 
	 By:
 	 	 THE BOYER COMPANY, L.C.,
 its General Partner
 
	 
	  	 	 By:
 	 	 /s/    STEVE OSTLER
 

	  	 	 Date:
 	 	 6/12/02
 

	  	 	 Title:
 	 	 Manager
 

 
 

 20 

  
 EXHIBIT A 
  
 UNREGISTERED PLEDGED UNITS 
  
 
	 Member Name
 
	  	 Certificate Nos.
 
	    	 Number of Non-Managing Member Units Pledged
 

	 Boyer-Foothill Associates, Ltd.
 	  	 42,47
 	    	 63,740
 
	 Boyer Kaysville Associates, L.C.
 	  	 10
 	    	 20,876
 
	 Boyer Old Mill II, L.C.
 	  	 49
 	    	 36,842
 
	 Boyer Rancho Vistoso, L.C.
 	  	 7
 	    	 43,773
 
	 Boyer-Research Park Associates, Ltd.
 	  	 17
 	    	 195,462
 
	 Boyer Research Park Associates VI, L.C.
 	  	 37
 	    	 43,794
 
	 Boyer Tatum Highlands Dental Clinic, L.C.
 	  	 13
 	    	 4,623
 
	 Boyer-Alta View Associates, Ltd.
 	  	 66,67
 	    	 28,789
 
	 Boyer Stansbury II, L.C.
 	  	 64,65
 	    	 33,969
 
	 TOTAL:
 	  	  	    	 471,868
 

 
  
 

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Exhibit 4.1    
  

 
 

USA CAPITAL FIRST TRUST DEED FUND, LLC
  A Nevada Limited-Liability Company    
    
    SUBSCRIPTION BOOKLET AND INSTRUCTIONS    
  

SUBSCRIPTION INSTRUCTIONS  

        Attached is the Subscription Agreement and Power of Attorney (the "Subscription Agreement") relating to the purchase of the limited-liability company membership
units of USA Capital First Trust Deed Fund, LLC, a Nevada limited-liability company (the "Company"). The Company is offering an aggregate of 24,000 Class A, Class B and
Class C limited-liability company membership units (the "Units") at a purchase price of $5,000.00 per Unit for an aggregate offering amount of $120,000,000.00. The Units are being offered
pursuant to the Company's Prospectus dated as of                        , 20    , as amended from time to time
by the Company. 

        A
prospective investor desiring to subscribe for Units must complete and execute the Subscription Agreement in accordance with the instructions herein and send this completed
Subscription Booklet and payment for the relevant Units as follows: 

	1.
	Verification
of Investor Suitability: Please initial the appropriate boxes in Section 2 of the Subscription Agreement (Page 3) and Appendix A to the Subscription
Agreement to verify whether the prospective investor is suitable to purchase the Units.

	2.
	Subscription
for Units: Please indicate in Section 4 of the Subscription Agreement (Page 3) the number of Units to be purchased.

	3.
	Classification
of Units: Of the Units to be purchased, please indicate in Section 5 of the Subscription Agreement (Page 4) the class of Units for the Units to be
purchased.

	4.
	Distribution
or Reinvestment Election: Please indicate in Section 6 of the Subscription Agreement (Page 4) the election of the prospective investor on whether to reinvest
or receive monthly distributions, if any.

	5.
	Investor
Information: Please complete Section 8 of the Subscription Agreement (Page 5) by providing the relevant name, address and contact information.

	6.
	Signature
Page. Please date and sign the signature page to this Subscription Agreement (Page 7). 

        Once
the Subscription Booklet is fully completed and executed, the Subscription Booklet and the payment for the Units should be sent to: USA Capital First Trust Deed Fund, LLC,
c/o USA Capital Realty Advisors, LLC, 4484 South Pecos Road, Las Vegas, Nevada 89121. 

 
 
 

SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY    
  

        Pursuant to the terms and conditions of this Subscription Agreement and Power of Attorney (this "Agreement"), the undersigned hereby applies to become a member
("Member") of USA Capital First Trust Deed Fund, LLC, a Nevada limited-liability company (the "Company"), and subscribes to purchase the number of limited-liability company membership units in
the Company (the "Units") herein indicated in accordance with the Company's Prospectus, as amended (the "Prospectus"), and the
terms and conditions of the Company's Amended and Restated Operating Agreement, as amended (the "Operating Agreement"), a copy of which is provided as part of the Prospectus. 

        1.    REPRESENTATIONS AND WARRANTIES.    The undersigned represents and warrants to the Company and its manager, USA
Capital Realty Advisors, LLC, a Nevada limited-liability company, its successors and assigns (the "Manager") as follows: 

        (a)  The
undersigned has received, read and fully understand the Prospectus, and in making this investment, the undersigned is relying only on the information provided
therein and has not relied on any statements or representations inconsistent with those contained in the Prospectus. 

        (b)  The
undersigned is aware that this subscription may be rejected in whole or in part by the Manager in its sole and absolute discretion and that the investment, if
accepted, is subject to certain risks described in part in the Prospectus in the section entitled "Risks Factors." 

        (c)  The
undersigned understands that the Units may not be sold or otherwise disposed of without the prior written consent of the Manager, which consent may be granted or
withheld in its sole discretion, and that any transfer is subject to numerous other restrictions described in the Prospectus and in the Operating Agreement. The undersigned has liquid assets
sufficient to assure the undersigned that such purchase will cause the undersigned no undue financial difficulties and that the undersigned can provide for the undersigned's current needs and possible
personal contingencies, or if the undersigned is the trustee of a retirement trust, that the limited liquidity of the Units will not cause difficulty in meeting the trust's obligations to make
distributions to plan participants in a timely manner. 

        (d)  The
undersigned is of the age of majority (as established in the state in which the undersigned is domiciled), if an individual, and, in any event, the undersigned has
full power, capacity and authority to enter into a contractual relationship with the Company. If acting in a representative or fiduciary capacity for a corporation, fund or trust, or as a custodian or
agent for any person or entity, the undersigned has full power or authority to enter into this subscription agreement in such capacity and on behalf of such corporation, fund, trust, person or entity. 

        (e)  The
undersigned is buying the Units solely for the undersigned's own account, or for the account of a member or members of undersigned's immediate family or in a
fiduciary capacity for the account of another person or entity, and not as an agent for another. 

        (f)    The
undersigned acknowledges and agrees that counsel representing the Company, the Manager and their affiliates does not represent the undersigned and shall not be
deemed under the applicable codes of professional responsibility to have represented or to be representing the undersigned or any other investor in any respect. 

        (g)  To
the extent that the undersigned is purchasing the Units in a fiduciary capacity or as a custodian for the account of another person or entity, the undersigned has
been directed by that person or entity to purchase the Units, and such person or entity is aware of the purchase of the Units on their behalf, and consents thereto and is aware of the merits and risks
involved in the investment in the Company. 

        (h)  The
undersigned understands that an investment in the Units will not, in itself, create a retirement plan as described in the Internal Revenue Code of 1986, as amended
(the "Code"), and that, to create a retirement plan, the undersigned must comply with all applicable provisions of the Code. 

2

 

        (i)    The
undersigned: (i) is or will be in a financial position appropriate to enable the undersigned to realize to a significant extent the benefits described in the
Prospectus, including the tax benefits where they are a significant aspect of the Fund; (ii) has a fair market net worth sufficient to sustain the risks inherent in the program, including loss
of investment and lack of liquidity; and (iii) the investment in the Company is otherwise suitable for the undersigned. 

        (j)    The
undersigned understands that: (i) it may not be possible to readily liquidate an investment in the Company; (ii) there is no public market for the
Units; (iii) no public market for the Units is expected to develop; (iv) even if a potential buyer could be found, the transferability of the Units is also restricted by the provisions
of the state and federal securities laws; and (v) any sale or transfer of Units also requires the prior written consent of the Company's manager, which may be withheld in its sole discretion. 

        By
making these representations, the undersigned has not waived any right of action available under applicable federal or state securities laws. 

        2.    INVESTOR SUITABILITY.    The undersigned hereby acknowledges and understands that an investment in the Units
involves a high degree of risk and hereby represents and warrants that the undersigned: (a) is able to bear the loss of the undersigned's entire investment without any material adverse effect
on the undersigned's economic stability, (b) understands that an investment in the Company involves substantial risks; and (c) has such knowledge and experience in financial and business
matters that the undersigned is capable of evaluating the merits and risks of the investment to be made by the undersigned pursuant to the Prospectus. In addition, the undersigned represents and
warrants that: 

	o
	The
undersigned, or the fiduciary account for which the undersigned is purchasing, is a resident of one of the states listed in  Appendix A to this Subscription Agreement; and

	o
	The
undersigned, or the fiduciary account for which the undersigned is purchasing, fulfills the investor suitability criteria that applies
to a resident of such state, as indicated in Appendix A to this Subscription Agreement. 

        3.    ACCEPTANCE OF OPERATING AGREEMENT.    By execution of this Agreement, the undersigned acknowledges and
understands that the ownership of the Units and the management of the Company is governed solely by the terms and conditions of the Operating Agreement. In addition, the undersigned acknowledges:
(a) the receipt of the Operating Agreement; (b) the ability to review the terms and conditions of the Operating Agreement (either with or without the undersigned's own legal counsel or
business or tax advisor); (c) the ability to ask questions of and receive answers from the Company with respect to the Operating Agreement (with all such questions, if any, being answered to
the full satisfaction of the purchaser); and (d) the acceptance to be bound by the terms and conditions of the Operating Agreement. 

        4.    PURCHASE OF UNITS; PAYMENT.    The undersigned hereby agrees to subscribe to the following number of Units at
the purchase price of Five Thousand Dollars (US $5,000) per Unit, payable in cash concurrently with delivery of this Agreement: 

	PURCHASE PRICE PER UNIT:	 	$	5,000.00
	NUMBER OF UNITS TO BE PURCHASED (MINIMUM OF TWO (2) UNITS):	 	x	 
	TOTAL PURCHASE PRICE:	 	$	 

        The
total purchase price is payable in cash concurrently with delivery of this Agreement either through wire transfer, previously delivered, or through personal or certified check. Until
the Company has sold the minimum 300 Units, payments should be made to our escrow agent as follows: "Wells Fargo Bank fbo USA Capital First Trust Deed Fund." Once the Company has sold the minimum 300
units, payments should be made to "USA Capital First Trust Deed Fund, LLC." The total purchase 

3

 

price should be returned with this completed and executed Subscription Agreement and Power of Attorney to: 

USA
Capital First Trust Deed Fund, LLC

c/o USA Capital Realty Advisors, LLC

4484 South Pecos Road

Las Vegas, Nevada 89121 

        The
undersigned understands that the subscription funds will not be entitled to distributions from the Company until the undersigned is admitted to the Company as a Member. 

        5.    CLASSIFICATION OF UNITS.    As described in the sections entitled, "Terms of the
Offering—Classification of Units" and "Summary of Operating Agreement—Classification of Units," of the Prospectus, the undersigned is required to select a class for the Units
to be purchased, where such selection is subject to the approval of the Manager. The three classes of Units are identical in right and obligation with the exception of the relevant holding periods for
which the units must be held and the relevant preferred returns for the Units. The relevant holding periods and the preferred returns for the class a units, the class b units or the
class c units are provided for below. as discussed in the Prospectus, since the preferred returns for each class will vary during the course of the offering, as adjusted by the manager in light
of applicable market conditions, the preferred returns for the classes and the spreads between the same will be maintained for Units issued as of any one date and may vary for Units of the same class
issued as of different dates. The undersigned hereby designates the Units to be purchased as follows: 

	 
	Class
	 	Holding Period
	 	Current Preferred

Rate of Return
	 	Number of Units

	o	Class A	 	Twelve (12) months	 	            	%	            Units
	

o	

Class B	
 	

Twenty-four (24) months	
 	

 	
%	

             Units
	

o	

Class C	
 	

Thirty-six (36) months	
 	

 	
%	

             Units
	

 	

 	
 	

 	
 	

 	
 	

	

 	

 	
 	

 	
 	

Total	
 	

             Units

        6.    ELECTION TO RECEIVE OR REINVEST DISTRIBUTIONS.    The undersigned acknowledges and understands that the Company
maintains a Distribution Reinvestment plan under which the undersigned may elect to receive or reinvest cash distributions. For additional information, see the sections of the Prospectus entitled
"Summary—Distribution Reinvestment Plan" and "Summary of Operating Agreement—Receipt or Reinvestment of Distributions." Accordingly, to the extent that the Undersigned remains
qualified to purchase the Units and the Units are registered under the Securities Act of 1933, as amended, and applicable state securities statutes or an exemption from such registration is available,
the undersigned may continue participating in the company's distribution reinvestment plan. In order to elect whether to receive or reinvest monthly cash distributions, please choose one of the
following two options: 

	o
	OPTION A:    The undersigned elects to participate in the Company's distribution
reinvestment plan rather than receive distributions in cash.

	o
	OPTION B:    The undersigned elects not to participate in the Company's
distribution reinvestment plan and, instead, elects to receive distributions in cash. 

        If
you check neither blank, the undersigned will be considered to have elected to receive distributions in cash (Option B). 

        7.    ACCEPTANCE.    This subscription agreement and power of attorney (this "Agreement") will be accepted or rejected
by the Manager within fifteen (15) days of its receipt by the Company. Upon acceptance, this subscription will become irrevocable, and will obligate the undersigned to purchase the number of
Units specified below, for the purchase price of five thousand dollars (US $5,000) per Unit. 

4

 

The Manager will return a countersigned copy of this agreement to accepted subscribers, which copy (together with the cancelled check) of this agreement will be evidence of my purchase of the Units. 

        8.    INVESTOR INFORMATION.    (Please print or type.) 

        Please
complete the following, as applicable. (Investments by more than one of the following entities, even if related to each other or controlled by the same person, require completion
of a separate Subscription Agreement and Power of Attorney.) 

INDIVIDUAL:

	Name:	 	    
	 	SSN:	 	    

	Address:	 	    
    
	 	 	 	 
	Telephone:

(Home)	 	(            )
                         -
                        	 	Telephone:

(Office)	 	(            )
                         -
                        

INDIVIDUAL RETIREMENT ACCOUNT ("IRA") OR PENSION OR PROFIT SHARING TRUST ("ERISA PLAN"):

	Trustee:	 	    
	 	Tax ID No.:	 	    

	Address:	 	    
    
	 	Acct. No.:	 	    

	Telephone:

(Home)	 	(            )
                         -
                        	 	Telephone:

(Office)	 	(            )
                         -
                        
	 	 	Names of All Participants:	 	    
    
    

CORPORATION, BUSINESS TRUST, LIMITED-LIABILITY COMPANY, PARTNERSHIP, TRUST OR OTHER:

	Name:	 	    
	 	Tax ID No.:	 	    

	Address:	 	    
    
	 	Acct. No.:	 	    

	Telephone:

(Home)	 	(            )
                         -
                        	 	Telephone:

(Office)	 	(            )
                         -
                        
	Names of All Equity Owners, Partners or Grantors:	 	    
    
    

5

  

        9.    POWER OF ATTORNEY.    THE UNDERSIGNED HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE MANAGER AS THE
UNDERSIGNED'S TRUE AND LAWFUL ATTORNEY-IN-FACT, WITH FULL POWER AND AUTHORITY FOR THE UNDERSIGNED, AND IN THE UNDERSIGNED'S NAME, PLACE AND STEAD, TO EXECUTE, ACKNOWLEDGE,
VERIFY, DELIVER, RECORD, PUBLISH AND FILE ON THE UNDERSIGNED'S BEHALF THE FOLLOWING: 

        (a)  The
Operating Agreement and the articles of organization of the Company and any amendments thereto or cancellations thereof required under the laws of the State of
Nevada; 

        (b)  Any
other certificates, instruments and documents as may be required by, or may be appropriate under, the laws of any state or other jurisdiction in which the Company is
doing or intends to do business; and 

        (c)  Any
documents that may be required to effect the continuation of the Company, the admission of an additional or substituted Member, or the dissolution and termination of
the Company. 

        This
power of attorney is a special power of attorney and is coupled with an interest in favor of the Manager and as such: 

        (x)  Shall
be irrevocable and continue in full force and effect notwithstanding the subsequent death or incapacity of any party granting this power of attorney, regardless of
whether the Company or the Manager shall have had notice thereof; 

        (y)  May
be exercised for a Member by a facsimile signature of the Manager or, after listing more than one Member, including the undersigned, by a single signature of the
Manager acting as attorney in fact for all of them; and 

        (z)  Shall
survive the delivery of an assignment by a Member of the whole or any portion of the Member's Units in the Company, except that where the assignee thereof has been
approved by the
Manager for admission to the Company and a substituted Member, this power of attorney given by the assignor shall survive the delivery of such assignment for the sole purpose of enabling the Manager
to execute, acknowledge, and file any instrument necessary to effect such substitution. 

        10.    INDEMNIFICATION.    THE UNDERSIGNED AGREES TO INDEMNIFY, DEFEND (BY COUNSEL REASONABLY ACCEPTABLE TO THE
INDEMNIFIED PARTY) AND HOLD THE COMPANY, THE MANAGER, ITS MEMBERS AND THEIR RESPECTIVE MANAGERS, OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS, AND EACH OF THEIR RESPECTIVE SUCCESSORS AND ASSIGNS,
HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, LIABILITIES AND DAMAGES (INCLUDING, WITHOUT LIMITATION, ALL ATTORNEYS' FEES, WHICH SHALL BE PAID AS INCURRED) THAT ANY OF THEM MAY INCUR, IN ANY
MANNER OR TO ANY PERSON, BY REASON OF THE FALSITY, INCOMPLETENESS OR MISREPRESENTATION OF ANY INFORMATION FURNISHED BY THE UNDERSIGNED HEREIN OR IN ANY DOCUMENT SUBMITTED HEREWITH. 

(REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK) 

6

 

        IN WITNESS WHEREOF, the undersigned hereby agrees to become a Member in USA Capital First Trust Deed Fund, LLC, a Nevada
limited-liability company, upon the terms and conditions set forth herein and in the Operating Agreement. 

	INDIVIDUAL:	 	 	 
	

    
(Signature of Subscriber)	
 	

Date:	

    

	

By:	

    
(Print Name of Subscriber)	
 	

 	

 
	

Its:	

    
(Print Title, If Applicable)	
 	

 	

 
	
CORPORATION, TRUST OR OTHER:	
 	

 	

 
	

    
(Signature of Authorized Signatory)	
 	

Date:	

    

	

By:	

    
(Print Name of Authorized Signatory)	
 	

 	

 
	

Its:	

    
(Print Title of Authorized Signatory)	
 	

 	

 
	
IRA OR ERISA PLAN:	
 	

 	

 
	

    
(Signature of Individual Plan Participant)	
 	

Date:	

    

	

By:	

    
(Print Name of Individual Plan Participant)	
 	

 	

 
	

    
(Signature of Custodian or Trustee)	
 	

Date:	

    

	

By:	

    
(Print Name of Custodian or Trustee)	
 	

 	

 
	

Its:	

    
(Print Title of Custodian or Trustee)	
 	

 	

 

FOR
IRA OR ERISA PLANS, BOTH TRUSTEE AND BENEFICIAL OWNER(S) MUST SIGN. 

7

 
 
 

ACCEPTANCE    
  

        The foregoing Subscription Agreement and Power of Attorney is hereby accepted by USA Capital First Trust Deed Fund, LLC for the number and class of Units
indicated below. 

Dated:                        ,
20    

	USA CAPITAL FIRST TRUST DEED FUND, LLC	 	 
	

By:	
 	
USA CAPITAL REALTY ADVISORS, LLC,
 its sole manager	
 	

 
	

 	
 	

By:	
 	
USA INVESTMENT PARTNERS, LLC,
 its sole manager	
 	

 
	

 	
 	

 	
 	

By:	
 	
USA COMMERCIAL MORTGAGE COMPANY,
 its sole manager	
 	

 
	

 	
 	

 	
 	

 	
 	

By:	

    
	
 	

 
	 	 	 	 	 	 	 	    
	 	 	 	 
	 	 	 	 	 	 	Its:	    
	 	 	 	 

 
 

Investment Summary    
  

	Effective Date of Investment	 	,	  20
	Number of Units Purchased	 	 	  Units

	
Classification of Units
 
	
 	

Number
	
 	

Holding Period
	
 	

Preferred Return
	
 
	Class A	 	            Units	 	12 Months	 	        	%
	Class B	 	            Units	 	24 Months	 	        	%
	Class C	 	            Units	 	36 Months	 	        	%

8

 
 
 

APPENDIX A—INVESTOR SUITABILITY    
  

        The subscriber represents and warrants that the subscriber is a resident of one of the following states and meets one of the investor suitability requirements for
such state: 

	o
	Arizona

If
a resident of Arizona, the subscriber represents and warrants that the: 

	o	 	1.	 	Investment DOES NOT represent 10% or more of net worth; and further represents and warrants that the subscriber
	

-AND-
	

o	
 	

2.a.	
 	

Has a minimum net worth of $75,000 and minimum gross income of $75,000
	

-OR-
	

o	
 	

2.b.	
 	

Has a minimum net worth of $225,000
	

-OR-
	

o	
 	

2.c.	
 	

Is purchasing in a fiduciary capacity for a person meeting the requirements of either 2.a or 2.b above

	o
	California

If
a resident of California, the subscriber represents and warrants that the subscriber: 

	o	 	1.a.	 	Has a minimum net worth of $60,000 and minimum gross income of $60,000
	

-OR-
	

o	
 	

1.b.	
 	

Has a minimum net worth of $225,000
	

-OR-
	

o	
 	

1.c.	
 	

Is purchasing in a fiduciary capacity for a person meeting the requirements of either 1.a or 1.b above

	o
	Florida, Nevada or New York

If
a resident of either Florida, Nevada or New York, the subscriber represents and warrants that the subscriber: 

	o	 	1.a.	 	Has a minimum net worth of $45,000 and minimum gross income of $45,000
	

-OR-
	

o	
 	

1.b.	
 	

Has a minimum net worth of $150,000
	

-OR-
	

o	
 	

1.c.	
 	

Is purchasing in a fiduciary capacity for a person meeting the requirements of either 1.a or 1.b above

9

QuickLinks

Exhibit 4.1

USA CAPITAL FIRST TRUST DEED FUND, LLC A Nevada Limited-Liability Company SUBSCRIPTION BOOKLET AND INSTRUCTIONS

SUBSCRIPTION AGREEMENT AND POWER OF ATTORNEY

ACCEPTANCE

Investment Summary

APPENDIX A—INVESTOR SUITABILITY

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