EX-10.5



 





Exhibit 10.5




March 23, 2007




Mr. Thomas V. Inglesby

GSC Partners CDO Fund III, Limited

c/o GSC Group

500 Campus Drive, Suite 220

Florham Park, NJ 07932




Re: Purchase of Loan Portfolio




Gentlemen:




     This Agreement (“Agreement”) will confirm that, subject to the terms and conditions herein,
GSC Partners CDO Fund III, Limited, a company incorporated under the laws of the Cayman Islands
(“CDO Fund III” or the “Seller”), agrees to sell to GSC Investment Corp., a Maryland corporation
(together with its successors and assigns, the “Buyer”) on or after the Effective Time (as
hereinafter defined), and the Buyer agrees to buy (or cause its assignee to buy), in exchange for
the Purchase Price (as defined below), all of Seller’s right, title, and interest (“Seller’s
Interest”) in and to the assets specified in Exhibit A hereto (the “Assets”), including, without
limitation, all of Seller’s right, title, and interest in the benefit of all representations,
warranties, covenants, agreements, and indemnities of the other parties to the documentation
relating thereto, all voting, board observation or representation rights (if any) of Seller set
forth therein, all principal, interest, dividends and other amounts payable thereunder from and
after the Sale Date (as hereafter defined), all liens and collateral securing the Assets and all
proceeds of the foregoing (collectively, the “Purchased Rights”), but excluding (a) any cash
interest, fees and other amounts paid prior to the Sale Date and (b) Undelivered Assets (as
hereafter defined).



     Prior to completing the sale contemplated by this Agreement, (a) Seller intends to defease,
pursuant to its Indenture, dated December 4, 2001, as amended (the “Indenture”), the Class A Notes
and Class B Notes issued under (and as defined in) the Indenture (the “Defeasance”), using (i) the
Purchase Price (as defined below) payable by the Buyer hereunder, and (ii) the proceeds of a bridge
loan facility that is expected to fund not later than the Sale Date (the “Loan Facility”) and (b)
Buyer intends to fund the Purchase Price using the proceeds of an initial public offering of its
equity securities (the “Public Offering”) and borrowings under a credit facility (the “Credit
Facility”).



     Buyer is not assuming and is not liable for any obligations or liabilities of Seller arising
prior to the Sale Date under the loan documents and other agreements relating to the Assets (the
“Documents”), including, without limitation, any such obligations or liabilities arising from
Seller’s breach of any of its representations, warranties, covenants or agreements under the
Documents, all of which unassumed obligations and liabilities shall remain the sole responsibility
of Seller.



     The closing date for the purchase of the Assets (the “Sale Date”) shall be as agreed between
Seller and Buyer or, if the Effective Time shall not have occurred on such date, the first date
thereafter on which the Effective Time shall have occurred.



 









 





     If the Sale Date does not occur before March 31, 2007 (the “Expiration Time”), this Agreement
will terminate in accordance with its terms.


On the Sale Date, Buyer shall transfer to Seller, in immediately available funds, an amount (the
“Purchase Price”) equal to:




     (a) The sum of




	 	(i)	 	The valuations of each of the Assets as set forth in Exhibit A
to this Agreement; and
	 
	 	(ii)	 	the amount of accrued and unpaid interest (since the relevant
dates on which the last interest payments were received) on the Assets;





     (b) Less:




	 	(i)	 	the valuation specified with respect to any Asset (A) for which
any consent to the transfer to Buyer that is required from the issuer of the
Asset, the administrative agent with respect thereto or any other related
person (any such required consent, a “Consent”) is not obtained prior to the
Sale Date or (B) that has been sold by the Seller in connection with a
disposition of the company to which the Asset relates or otherwise
(collectively the “Undelivered Assets”).





     The amount of the Purchase Price described in clause (a)(i) above prior to any adjustments
pursuant to clauses (a)(ii) and (b)(i) above is referred to herein as the “Unadjusted Purchase
Price.”



     For greater certainty, with respect to (b)(i)(A) above, from and after the Effective Time,
Buyer shall continue to seek to obtain Consent to the transfer of any Undelivered Asset for a
period of 60 days following the Sale Date. Upon receipt of such Consent, Buyer shall notify Seller
thereof and the date (not later than 10 days after receipt of such Consent) upon which the sale of
such Asset is to occur, which shall be deemed to be the “Sale Date” in respect of such Asset. The
Buyer shall pay to Seller, in immediately available funds, the valuation with respect thereto set
forth in Exhibit A, plus the amount of accrued and unpaid interest thereon (since the date on which
the last interest payment was received in respect thereof), less any and all payments of principal
that the Seller has received in respect of such Asset after the Sale Date on which the Effective
Time shall have occurred.



     It is understood that after the Effective Time, (i) the Seller shall use commercially
reasonable efforts to obtain and deliver to the Buyer, and shall cooperate with Buyer in any
efforts the Buyer makes to obtain, all Consents as promptly as practicable, and (ii) the Seller and
Buyer shall enter into a transfer (or similar) agreement or series of transfer (or similar)
agreements, as required by the documents governing each security and customary for transactions of
this nature and size to record the sale or assignment. The form of agreement used will be dictated
by the documents governing each security, and if not required to be in said form, will be
substantially in a form customary for transactions of this nature prepared by Buyer and reasonably
acceptable to Seller. Pursuant to such agreement or series of agreements, Seller shall,



2









 







effective as of the Sale Date, sell and assign to Buyer all of Seller’s Interest in the
Purchased Rights.



     Seller acknowledges that Buyer will make disclosure of information as required by applicable
law in connection with the Public Offering (including Buyer’s obligation under federal securities
laws) and agrees (i) that such disclosure shall in no way violate or be deemed to violate any
provision of this Agreement and, accordingly, (ii) to take no action or otherwise make any claim
against Buyer for making such disclosure.



     Except as set out in the forgoing paragraph, Buyer agrees that until the time that Buyer
becomes the holder of record for an Asset, Buyer shall keep confidential all information regarding
such Asset and shall not disclose any such information to any other person, unless (i) Buyer
complies with the confidentiality provisions contained in the credit agreement or other agreements
between the investee company and the Seller relating to such Asset which have been delivered to the
Buyer as of the date hereof, (ii) Buyer has obtained the prior written consent from the investee
company under such Asset to the disclosure, or (iii) Buyer is compelled by a court of competent
jurisdiction to make such disclosures.



     Seller hereby represents and warrants to Buyer that:




	 	(a)	 	Seller has good title to and is the sole owner of the Purchased Rights, free
and clear of all liens, charges, interests, options, security interests, encumbrances,
claims, or defects (other than the lien of the Indenture and any lien permitted under
the Documents);
	 
	 	(b)	 	None of the Purchased Rights are, as of the date hereof, subject to any prior
assignment, conveyance, transfer or participation or agreement to assign, convey,
transfer or participate, in whole or in part, except pursuant to this Agreement;
	 
	 	(c)	 	Seller has (or, as of the Sale Date, shall have) all requisite power and
authority to execute and deliver, and to perform all of its obligations under, this
Agreement (subject, with respect to the sale of any Asset and the related Purchased
Rights, obtaining all applicable Consents), and such execution, delivery and
performance do not (i) violate any law, rule, regulation, order, writ or judgment or
any of Seller’s charter documents or the Indenture, (ii) require any authorizations,
consents, or approvals from, registrations with, or notices to, any court, governmental
agency or any other person (other than the applicable Consents), or (iii) result in the
creation of any lien, charge, interest, option, security interest, encumbrance, claim,
or defect upon the Purchased Rights (other than any of the foregoing in favor of or
held by the Buyer or its assigns);
	 
	 	(d)	 	Seller is not in breach or default of any of its obligations under the
Documents;
	 
	 	(e)	 	To the Seller’s knowledge, no obligor or other credit party is in breach or
default of any of its payment obligations under the Documents, provided that, in this
Agreement, “knowledge” shall mean the actual knowledge without due inquiry of the
employees of the collateral manager of CDO Fund III or direct or indirect managing
member or general partner of such collateral manager;










3









 












	 	(f)	 	Seller has not engaged in any acts or omissions that would result in any
portion of the Purchased Rights being subordinated, void, avoided, disallowed, reduced,
expunged, or subject to setoff, recoupment, counterclaim, or any other defense, or that
would result in Buyer receiving, in the aggregate, a proportionately smaller
distribution, later distribution, or less favorable treatment in respect of the
Purchased Rights than the distributions or treatment received by any other participant
in the Assets;
	 
	 	(g)	 	To the Seller’s knowledge, the Seller is not an “insider,” as that term is
defined in Section 101 of the United States Bankruptcy Code, with respect to any of the
issuers who have issued loans that make up a portion of the Assets;
	 
	 	(h)	 	Upon the satisfaction of the Defeasance Condition (as hereinafter defined),
this Agreement will be legal, valid and binding upon Seller in accordance with its
terms;
	 
	 	(i)	 	Seller is a sophisticated institutional investor that is an “accredited
investor” within the meaning of Rule 501 under the U.S. Securities Act of 1933, as
amended; and
	 
	 	(j)	 	None of the Assets are “United States real property interests” within the
meaning of Section 897(c) of the Internal Revenue Code of 1986, as amended (the “Code”)
and the Treasury Regulations promulgated thereunder (the “Treasury Regulations”). The
Seller shall indemnify and hold harmless Buyer from any breach of the foregoing
representation by the Seller or the Buyer’s reliance on such representation.





     Seller otherwise makes no other representations or warranties including any implied
representations or warranties.



     Buyer acknowledges that it has conducted, to the extent it deemed necessary, an independent
investigation of such matters, and has had the opportunity to receive such information and
documents as, in its judgment, are necessary for it to make an informed investment decision, and
has not relied upon the Seller (other than the representations and warranties set forth herein) for
any investigation or assessment to evaluate the transaction contemplated hereby.



     Buyer hereby represents and warrants to Seller that:




	 	(a)	 	As of the date hereof, Buyer intends diligently and in good faith to seek to
complete its Public Offering and to enter into the Credit Facility.
	 
	 	(b)	 	Buyer has all requisite power and authority to execute and deliver, and to
perform all of its obligations under, this Agreement and such execution, delivery and
performance do not (i) violate any law, rule, regulation, order, writ or judgment or
any of Buyer’s charter documents or (ii) require any authorizations, consents, or
approvals from, registrations with, or notices to, any court, governmental agency or
any other person;





4









 






	 	(c)	 	This Agreement is legal, valid and binding upon Buyer in accordance with its
terms; and
	 
	 	(d)	 	As of the Sale Date, Buyer will be a sophisticated institutional investor that
is an “accredited investor” within the meaning of Rule 501 under the U.S. Securities
Act of 1933, as amended.





     Buyer otherwise makes no other representations or warranties including any implied
representations or warranties.



     This Agreement shall be effective as to Buyer as of the date hereof. However, the obligation
of Buyer to consummate the purchase under this Agreement shall not be effective until such time
(the “Effective Time”) as both the Defeasance Condition and the following further conditions are
satisfied: (i) Buyer shall have obtained funds sufficient to enable it to pay the Purchase Price;
and (ii) Buyer shall have received an opinion of counsel to Seller in form and substance reasonably
satisfactory to Buyer. Notwithstanding (x) anything to the contrary in this Agreement or (y) the
execution and delivery of this Agreement by the Seller on the date hereof, this Agreement (and the
Seller’s execution thereof) shall not be effective as to the Seller, and the Seller shall not be
deemed to have entered into this Agreement, until the Purchase Price hereunder and the term loan
under the Loan Facility shall have been funded in an amount sufficient to complete the Defeasance
and the proceeds thereof shall have been deposited with the Custodian under, and in accordance with
Section 4.1 of, the Indenture and/or delivered to the Trustee under (and as defined in) the
Indenture to be applied to pay all other amounts owing under Section 4.1 of the Indenture in
connection with the Defeasance (the “Defeasance Condition”). Seller agrees to use its commercially
reasonable efforts to take or cause to be taken all action necessary to complete the Loan Facility
and to satisfy the Defeasance Condition.



     Seller shall indemnify and hold harmless Buyer from and against all actual losses,
liabilities, damages, judgments, settlements and expenses (including the reasonable fees and
disbursements of counsel) incurred by Buyer that arise out of or result from the breach by Seller
of its representations and warranties set forth in this Agreement. The indemnity provisions
contained in this Agreement shall remain operative and in full force and effect for one year from
the Sale Date regardless of (i) any termination of this Agreement, (ii) any investigation made by
or on behalf of Buyer, its authorized representatives, officers or directors or any person
controlling Buyer, and (iii) acceptance of and payment for any of the Purchased Rights.



     Following the satisfaction of the Defeasance Condition, Buyer shall give Seller prompt notice
of any third-party claim that may give rise to any indemnification obligation under this Agreement,
together with the estimated amount of such claim, and Seller shall have the right to assume the
defense (at Seller’s expense) of any such claim through counsel of Seller’s own choosing (and
reasonably satisfactory to Buyer) by so notifying Buyer in writing within 30 days of the receipt by
Seller of such notice from Buyer. If Seller assumes such defense, Buyer shall have the right to
participate in the defense thereof and to employ counsel, at its own expense (unless (i) the Buyer
and Seller shall have mutually agreed to the retention of such counsel or (ii) the named parties to
any such proceeding (including any impleaded parties) include both Buyer and Seller and
representation of both parties by the same counsel would be inappropriate due to actual or
potential conflicts of interest), separate from the counsel employed by Seller, it being



5









 







understood that Seller shall control such defense. If Seller chooses to defend or prosecute a
third-party claim, Buyer shall, at Seller’s expense, (i) cooperate in the defense or prosecution
thereof, which cooperation shall include, to the extent reasonably requested by Seller, the
retention, and the provision to Seller, of records and information in Buyer’s possession reasonably
relevant to such third-party claim, and making employees of Buyer and its affiliates available on a
mutually convenient basis to provide reasonable additional information and explanation of any
materials provided hereunder and (ii) agree to any settlement, compromise or discharge of such
third-party claim that Seller may recommend and that, by its terms, (i) includes an unconditional
release and discharge of Buyer from all liability on such third-party claim and (ii) does not
include a statement as to, or an admission of, fault, culpability or a failure to act, by or on
behalf of Buyer. None of Buyer nor any of its affiliates may settle or otherwise dispose of any
claim for which Seller has liability under this Agreement without the prior written consent of
Seller, which consent may not be unreasonably withheld, delayed or conditioned. Seller shall not
be liable under this Agreement for any settlement, compromise or discharge effected without its
consent in respect of any claim for which indemnity may be sought hereunder.



     From and after the date hereof, Buyer shall, and from and after the satisfaction of the
Defeasance Condition, Seller shall, execute and deliver all further documents or instruments
reasonably requested by the other party in order to effectuate the terms of this Agreement.
Without limiting the foregoing, if Buyer purchases the Assets and Seller receives any payments,
distributions, proceeds, or other amounts or items in respect of the Assets on or after the Sale
Date to which Buyer is entitled, including cash, securities, obligations, or other property, Seller
shall (i) accept and hold such payments, distributions, or proceeds on behalf of, for the sole
benefit of, and in trust for Buyer and (ii) pay or deliver the same forthwith to Buyer in the same
form received and, when necessary or appropriate, with the endorsement of Seller.



     This Agreement will be governed by and construed under the laws of the State of New York. Any
action or proceeding seeking to enforce any provision of, or based on any right arising out of,
this Agreement may be brought against any of the parties in the courts of the State of New York,
or, if it has or can acquire jurisdiction, in the United States District Court for New York, and
each of the parties consents to the jurisdiction of such courts (and of the appropriate appellate
courts) in any such action or proceeding and waives any objection to venue laid therein. Process
in any action or proceeding referred to in the preceding sentence may be served on any party
anywhere in the world.



     Each of Seller and Buyer agrees that damages for any breach of this Agreement would be
difficult to quantify and that, in addition to any and all other remedies at law or in equity, the
non-breaching party shall be entitled to an injunction requiring specific enforcement of this
Agreement and each of its terms without necessity of proving actual damages or posting a bond.



     The Buyer and Seller shall each pay 50% of all assignment fees required under the documents by
which the Assets are governed, transfer taxes, stamping fees and similar amounts (collectively
“Transfer Amounts”) which become due upon the sale of the Seller’s Interest in the Assets to the
Buyer (which, for greater certainty, shall not include income taxes or withholding taxes payable by
the Seller). However, if the aggregate Transfer Amounts exceed $200,000, either the Buyer or the
Seller may, unless the other party agrees to pay the Transfer Amounts in excess of $200,000, elect
to treat a portion of the Assets as Undelivered Assets but



6









 







only to the extent necessary to reduce the aggregate Transfer Amounts below $200,000. The
Assets to be selected as Undelivered Assets shall be subject to the agreement of the Seller and the
Buyer failing which, the Asset with the highest amount of Transfer Amounts will be selected first
and thereafter additional Assets will be selected in a descending order based on the amount of
Transfer Amounts. The Purchase Price will be adjusted for such Undelivered Assets as set out in
this Agreement.



     Prior to the Sale Date, the Seller shall provide the Buyer with an executed Internal Revenue
Service Form W-8BEN. The Buyer shall be entitled to deduct and withhold from any payments made to
the Seller pursuant to this Agreement any amounts required to be deducted and withheld under the
Code, the Treasury Regulations or any provision of state, local or foreign law. Any amounts
withheld by the Buyer pursuant to the foregoing sentence shall be treated for all purposes of this
Agreement as having been paid by the Buyer to the Seller.



     This Agreement may be executed in one or more counterparts, each of which will be deemed to be
an original copy of this Agreement and all of which, when taken together, will be deemed to
constitute one and the same agreement.



     This Agreement may not be modified, waived, discharged, or terminated orally, but only by an
instrument in writing signed by the parties hereto.



     Buyer may assign, in its sole discretion, any or all of its rights and interests hereunder to
any direct or indirect affiliate of Buyer; provided, however, that Buyer shall remain subject to
the duties, obligations and liabilities of Buyer hereunder. Seller’s obligations are not
assignable without Buyer’s prior written consent, which may not be unreasonably withheld, delayed
or conditioned.



     If any provision of this Agreement shall for any reason be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, but
this Agreement shall be construed as if such invalid or unenforceable provision had never been
contained herein.



     Your signature below shall signify your agreement with the foregoing. Please sign two copies
of this Agreement, retaining one for your files and returning the other copy to GSC Investment
Corp. at the address indicated on the above letterhead.



	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 
	 	 	GSC INVESTMENT CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Richard T. Allorto
 

Richard T. Allorto
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 






7









 






Duly executed and agreed March 23, 2007




GSC PARTNERS CDO FUND III, LIMITED,

on behalf of itself and each of its affiliates,




	 	 	 	 	 
	By: 

Name:

	 	/s/ Carlos Farjallah
 

Carlos Farjallah
	 	 
	Title:

	 	Director	 	 







8









 








Exhibit A




	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	 	 	 
	Name of Portfolio	 	Investment	 	Coupon	 	Maturity	 	Par	 	Valuation
	 
	Aero Products International, Inc.

	 	First Lien Term Loan
	 	 	L + 5.00	%	 	12/19/08
	 	 	2,677,214	 	 	 	2,637,055	 
	Atlantis Plastics Films, Inc.

	 	First Lien Term Loan
	 	 	L + 4.00	%	 	09/22/11
	 	 	1,013,421	 	 	 	1,005,821	 
	CFF Acquisition LLC

	 	First Lien Term Loan
	 	 	L + 3.75	%	 	07/31/13
	 	 	3,159,562	 	 	 	3,159,562	 
	Cortz, Inc.

	 	First Lien Term Loan
	 	 	L + 4.00	%	 	11/30/10
	 	 	1,054,896	 	 	 	1,054,896	 
	Flavor and Fragrance Group
Holdings, Inc.

	 	First Lien Term Loan
	 	 	L + 4.00	%	 	06/30/10
	 	 	481,188	 	 	 	481,188	 
	Flavor and Fragrance Group
Holdings, Inc.

	 	First Lien Term Loan
	 	 	L + 4.50	%	 	06/30/11
	 	 	1,342,900	 	 	 	1,342,900	 
	Flavor and Fragrance Group
Holdings, Inc.

	 	First Lien Term Loan
	 	 	L + 7.00	%	 	12/31/11
	 	 	754,380	 	 	 	754,380	 
	Insight Pharmaceuticals LLC

	 	First Lien Term Loan
	 	 	L + 4.25	%	 	03/31/11
	 	 	708,014	 	 	 	704,474	 
	Insight Pharmaceuticals LLC

	 	First Lien Term Loan
	 	 	L + 4.63	%	 	03/31/12
	 	 	718,196	 	 	 	714,605	 
	Legacy Cabinets, Inc.

	 	First Lien Term Loan
	 	 	L + 3.75	%	 	08/18/12
	 	 	1,200,468	 	 	 	1,176,458	 
	Miller Heiman Acquisition Corp.

	 	First Lien Term Loan
	 	 	L + 3.75	%	 	06/01/12
	 	 	1,143,864	 	 	 	1,143,864	 
	Questex Media Group, Inc.

	 	First Lien Term Loan
	 	 	L + 4.25	%	 	05/23/12
	 	 	3,691,162	 	 	 	3,691,162	 
	Redwood Toxicology Laboratory, Inc.

	 	First Lien Term Loan
	 	 	L + 4.00	%	 	02/27/12
	 	 	622,610	 	 	 	617,940	 
	Switch & Data Holdings, Inc.

	 	First Lien Term Loan
	 	 	L + 4.25	%	 	10/13/11
	 	 	2,855,876	 	 	 	2,852,306	 
	ABP Corporation

	 	Second Lien Term Loan
	 	 	L + 4.50	%	 	07/15/10
	 	 	3,771,900	 	 	 	3,771,900	 
	Bankruptcy Management Solutions,
Inc.

	 	Second Lien Term Loan
	 	 	L + 6.25	%	 	07/31/13
	 	 	1,266,825	 	 	 	1,279,493	 
	Convergeone Holdings Corp.

	 	Second Lien Term Loan
	 	 	L + 5.75	%	 	05/31/13
	 	 	635,000	 	 	 	635,000	 
	Energy Alloys, LLC

	 	Second Lien Term Loan
	 	 	L + 6.50	%	 	09/13/11
	 	 	3,937,000	 	 	 	3,937,000	 
	Grant U.S. Holdings LLP

	 	Second Lien Term Loan
	 	 	L + 6.50	%	 	09/30/13
	 	 	635,000	 	 	 	635,000	 
	Group Dekko

	 	Second Lien Term Loan
	 	 	L + 6.25	%	 	01/20/12
	 	 	2,540,000	 	 	 	2,540,000	 
	Hopkins Manufacturing Corporation

	 	Second Lien Term Loan
	 	 	L + 7.00	%	 	01/26/12
	 	 	2,063,750	 	 	 	2,058,591	 
	Legacy Cabinets, Inc.

	 	Second Lien Term Loan
	 	 	L + 7.50	%	 	08/18/13
	 	 	1,524,000	 	 	 	1,478,280	 
	New World Restaurant Group, Inc.

	 	Second Lien Term Loan
	 	 	L + 6.75	%	 	01/26/12
	 	 	3,492,500	 	 	 	3,492,500	 
	PRACS Institute, LTD

	 	Second Lien Term Loan
	 	 	L + 6.00	%	 	04/17/13
	 	 	1,905,000	 	 	 	1,905,000	 






 









 






	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	 	 	 	 	 	 	 
	Name of Portfolio	 	Investment	 	Coupon	 	Maturity	 	Par	 	Valuation
	 
	Sportcraft, LTD

	 	Second Lien Term Loan
	 	 	L + 7.75	%	 	03/31/12
	 	 	3,175,000	 	 	 	2,540,000	 
	Stronghaven, Inc.

	 	Second Lien Term Loan
	 	 	11.00	%	 	10/31/10
	 	 	2,063,750	 	 	 	2,063,750	 
	Targus Group International, Inc.

	 	Second Lien Term Loan
	 	 	L + 7.50	%	 	05/22/13
	 	 	3,175,000	 	 	 	2,992,438	 
	Transportation Aftermarket
Enterprises, Inc.

	 	Second Lien Term Loan
	 	 	L + 7.25	%	 	06/30/12
	 	 	650,875	 	 	 	624,840	 
	USS Mergerco, Inc.

	 	Second Lien Term Loan
	 	 	L + 4.25	%	 	06/29/13
	 	 	3,784,600	 	 	 	3,689,985	 
	Wyle Laboratories, Inc.

	 	Second Lien Term Loan
	 	 	L + 6.50	%	 	07/28/11
	 	 	635,000	 	 	 	639,763	 
	X-Rite, Incorporated

	 	Second Lien Term Loan
	 	 	L + 5.00	%	 	06/30/13
	 	 	2,540,000	 	 	 	2,565,400	 
	GFSI Inc

	 	Senior Secured Bond
	 	 	11.00	%	 	06/01/11
	 	 	5,667,000	 	 	 	5,638,665	 
	McMillin Companies LLC

	 	Senior Secured Bond
	 	 	9.53	%	 	04/30/12
	 	 	3,810,000	 	 	 	3,505,200	 
	Strategic Industries

	 	Senior Secured Bond
	 	 	12.50	%	 	10/01/07
	 	 	7,620,000	 	 	 	6,858,000	 
	Terphane Holdings Corp.

	 	Senior Secured Bond
	 	 	12.50	%	 	06/15/09
	 	 	1,778,000	 	 	 	1,769,110	 
	Terphane Holdings Corp.

	 	Senior Secured Bond
	 	 	12.50	%	 	06/15/09
	 	 	1,664,000	 	 	 	1,655,680	 
	Terphane Holdings Corp.

	 	Senior Secured Bond
	 	 	L + 9.70	%	 	06/15/09
	 	 	318,000	 	 	 	316,410	 
	Advanced Lighting Technologies, Inc.

	 	Unsecured Bond
	 	 	11.00	%	 	03/31/09
	 	 	4,431,000	 	 	 	4,408,845	 
	Ainsworth Lumber

	 	Unsecured Bond
	 	 	7.25	%	 	10/01/12
	 	 	64,000	 	 	 	95,360	 
	EuroFresh Inc.

	 	Unsecured Bond
	 	 	11.50	%	 	01/15/13
	 	 	3,175,000	 	 	 	3,111,500	 
	IDI Acquisition Corp.

	 	Unsecured Bond
	 	 	10.75	%	 	12/15/11
	 	 	1,334,000	 	 	 	1,233,950	 
	Jason Incorporated

	 	Unsecured Bond
	 	 	13.00	%	 	11/01/08
	 	 	2,159,000	 	 	 	2,159,000	 
	NE Restaurant Co.

	 	Unsecured Bond
	 	 	10.75	%	 	07/15/08
	 	 	6,306,000	 	 	 	6,306,000	 
	Network Communications, Inc.

	 	Unsecured Bond
	 	 	10.75	%	 	12/01/13
	 	 	3,175,000	 	 	 	3,242,469	 
	Total

	 	 	 	 	 	 	 	 	 	 	100,719,949	 	 	 	98,485,738