# EDGAR Filing Document

**Accession Number:** 0002073537
**File Stem:** 0001193125-26-133933
**Filing Date:** 2026-3
**Character Count:** 2128033
**Document Hash:** 89a0dc0331a4b96857a83ba0ece566db
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-133933.hdr.sgml**: 20260331

**ACCESSION NUMBER**: 0001193125-26-133933

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 128

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260331

**DATE AS OF CHANGE**: 20260331

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PIMCO Asset-Based Lending Co LLC
- **CENTRAL INDEX KEY:** 0002073537
- **STANDARD INDUSTRIAL CLASSIFICATION:** INVESTMENT ADVICE [6282]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 334188434
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56764
- **FILM NUMBER:** 26819973

**BUSINESS ADDRESS:**
- **STREET 1:** 650 NEWPORT CENTER DRIVE
- **CITY:** NEWPORT BEACH
- **STATE:** CA
- **ZIP:** 92660
- **BUSINESS PHONE:** (949) 720-6000

**MAIL ADDRESS:**
- **STREET 1:** 650 NEWPORT CENTER DRIVE
- **CITY:** NEWPORT BEACH
- **STATE:** CA
- **ZIP:** 92660

?xml version='1.0' encoding='ASCII'? 10-K

##### [**Table of Contents**](#toc)

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### WASHINGTON, DC 20549

### FORM 10-K

#### (Mark One)
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

#### For the fiscal year ended December 31, 2025

#### OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

#### For the transition period from to

#### Commission file number 000-56764

## PIMCO Asset-Based Lending Company LLC

#### (Exact name of registrant as specified in its charter)
Delaware 33-4188434 <br> (State or other jurisdiction ofincorporation or organization) (I.R.S. EmployerIdentification No.)

#### 650 Newport Center Drive

#### Newport Beach, CA 92660

#### (Address of principal executive offices) (zip code)
(949) 720-6000

#### (Registrant's telephone number, including area code)

#### Not Applicable

#### (Former name, former address and former fiscal year, if changed since last report)

#### Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br>on which registered |

---

#### Securities registered pursuant to Section 12(g) of the Act:

---

| | |
|:---|:---|
| PIMCO Asset-Based Lending Company LLC - Series I | Anchor I Shares<br>Anchor II Shares<br>Anchor II-B Shares<br>Standard A Shares<br>Standard B Shares<br>E Shares |
| PIMCO Asset-Based Lending Company LLC - Series II | Anchor I Shares<br>Anchor I-B Shares<br>Anchor II Shares<br>Anchor II-B Shares<br>Anchor III Shares<br>Standard A Shares<br>Standard B Shares<br>E Shares |

---

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
| Emerging Growth Company | ☒ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of February 28, 2026, the registrant had, with respect to Series I limited liability company interests, 73,617 Anchor I Shares, 1,402,423 Anchor II Shares, 110 Anchor II-B Shares, 43,009 Standard A Shares, 110 Standard B Shares, 213,589 E Shares and 40 V Shares outstanding, and with respect to Series II limited liability company interests, 11,173,522 Anchor I Shares, 10,635,428 Anchor II Shares, 10,061,481 Anchor III Shares, 491,298 Standard A Shares, 4,310,925 E Shares and 40 V Shares outstanding. The number of Shares outstanding excludes March 2, 2026 subscriptions since the relevant net asset value has not been published and shares have not been allocated as of the date of this filing. As of February 2, 2026, there were no Anchor I-B, Anchor II-B or Standard B Shares outstanding for Series II.

There is currently no established public market for the Registrant's Shares.

#### DOCUMENTS INCORPORATED BY REFERENCE

#### None.

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##### [**Table of Contents**](#toc)

#### **Table of Contents**

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| | | |
|:---|:---|:---|
|  | **Page** | **Page** |
|  **Part I.** |  |  |
|  [Item 1. Business](#txa112132_1) |  | 4 |
|  [Item 1A. Risk Factors](#txa112132_2) |  | 49 |
|  [Item 1B. Unresolved Staff Comments](#txa112132_3) |  | 167 |
|  [Item 1C. Cybersecurity](#txa112132_4) |  | 168 |
|  [Item 2. Properties](#txa112132_5) |  | 169 |
|  [Item 3. Legal Proceedings](#txa112132_6) |  | 169 |
|  [Item 4. Mine Safety Disclosures](#txa112132_7) |  | 169 |
|  **Part II.** |  |  |
|  [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#txa112132_8) |  | 169 |
|  [Item 6. \[Reserved\]](#txa112132_9) |  | 171 |
|  [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](#txa112132_10) |  | 171 |
|  [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](#txa112132_11) |  | 177 |
|  [Item 8. Financial Statements and Supplementary Data](#txa112132_12) |  | 178 |
|  [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#txa112132_13) |  | 208 |
|  [Item 9A. Controls and Procedures](#txa112132_14) |  | 208 |
|  [Item 9B. Other Information](#txa112132_15) |  | 209 |
|  [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#txa112132_16) |  | 209 |
|  **PART III.** |  |  |
|  [Item 10. Directors, Executive Officers and Corporate Governance](#txa112132_17) |  | 209 |
|  [Item 11. Executive Compensation](#txa112132_18) |  | 214 |
|  [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#txa112132_19) |  | 216 |
|  [Item 13. Certain Relationships and Related Transactions, and Director Independence](#txa112132_20) |  | 217 |
|  [Item 14. Principal Accountant Fees and Services](#txa112132_21) |  | 230 |
|  **PART IV.** |  |  |
|  [Item 15. Exhibits and Financial Statement Schedules](#txa112132_22) |  | 230 |
|  [Item 16. Form 10-K Summary](#txa112132_23) |  | 232 |
|  [Signatures](#txa112132_24) |  |  |

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#### SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
*References herein to "we," "us," "our," the "Company" and "PALCO" refer to PIMCO Asset-Based Lending Company LLC, or, where applicable, Series I and/or Series II (each as defined below). The term "Series I" refers to PIMCO Asset-Based Lending Company LLC - Series I, a registered series of the Company; the term "Series II" refers to PIMCO Asset-Based Lending Company LLC - Series II, a registered series of the Company; and the term "Series" refers collectively to Series I and Series II. Each of the terms "Anchor I Shares," "Anchor I-B Shares," "Anchor II Shares," "Anchor II-B Shares," "Anchor III Shares," "Standard A Shares," "Standard B Shares," "E Shares" and "V Shares," unless otherwise indicated, refers collectively to the applicable class of limited liability company interests (the "Shares") of both Series I and Series II. Other than Anchor I-B and Anchor III Shares, which represent classes of limited liability company interests only in Series II, each class of Shares described herein represents the applicable class of limited liability company interest in each of Series I and Series II. The same class of each Series will have the same terms with respect to each Series unless otherwise indicated.* 

Some of the statements in this Annual Report on Form 10-K (this "Annual Report") constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), because they relate to future events or our future performance or financial condition. The forward-looking statements contained in this Annual Report may include statements as to:

• our future operating results;

• our business prospects and the prospects of the Portfolio Assets (as defined below) we acquire, control and manage;

• our ability to raise sufficient capital to execute our acquisition and lending strategies;

• the ability of the Operating Manager (as defined below) to source adequate acquisition and lending opportunities to efficiently deploy capital;

• the ability of our Portfolio Assets to achieve their objectives;

• our current and expected financing arrangements;

• changes in the general interest rate environment;

• the adequacy of our cash resources, financing sources and working capital;

• the timing and amount of cash flows, distributions and dividends, if any, from our Portfolio Assets;

• our contractual arrangements and relationships with third parties;

• actual and potential conflicts of interest with the Operating Manager or any of its affiliates;

• the dependence of our future success on the general economy and its effect on the industries in which we acquire, control and manage Portfolio Assets;

• our use of financial leverage;

• the ability of the Operating Manager to identify, acquire and manage our Portfolio Assets;

• the ability of the Operating Manager or its affiliates to attract and retain highly talented professionals;

• our ability to structure acquisitions in a tax-efficient manner and the effect of changes to tax legislation and our tax position; and

• the tax status of the enterprises through which we acquire, control and manage Portfolio Assets.

In addition, words such as "anticipate," "believe," "expect," "plan," "seek" and "intend" and similar words or variations thereof may indicate a forward-looking statement, although not all forward-looking statements include these words. The forward-looking statements contained in this Annual Report involve risks and uncertainties, including factors outside of our control. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in "*Item 1A. Risk Factors*" and elsewhere in this Annual Report and in our other filings with the U.S. Securities and Exchange Commission (the "SEC"), including the Company's latest registration statement on Form 10 under the Exchange Act. Other factors that could cause actual results to differ materially include, but are not limited to:

• changes in the economy;

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• risks associated with possible disruption in our operations or the economy generally due to terrorism, natural disasters, epidemics or other events having a broad impact on the economy; and

• future changes in laws or regulations and conditions in our operating areas.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Annual Report should not be regarded as a representation by us that our plans and objectives will be achieved. These forward-looking statements apply only as of the date of this Annual Report. Moreover, we assume no duty and do not undertake to update the forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

#### Summary of Risk Factors
The following is only a summary of the principal risks that may materially adversely affect the Company's business, financial condition, results of operations and cash flows. These are not the only risks the Company faces. You should carefully consider these summary risk factors, together with the risk factors set forth below under *"Item 1A. Risk Factors"* and elsewhere in this Annual Report and the other reports and documents filed by the Company with the SEC.

#### Risks Related to the Company and an Investment in the Shares
• The Company faces heightened risks because it is a recently formed entity with a limited operating history and record.

• The Company's Portfolio Assets (including the Asset-Backed Instruments (as defined below)) may not achieve the business objectives of the Company or generate returns for Shareholders. The term "Shareholders" refers, individually and collectively, to Series I Shareholders and/or Series II Shareholders (each as defined below), which term may also refer to prospective shareholders in the applicable Series, as the context requires.

• The Company's ability to achieve its business objectives depends on the Operating Manager because the Operating Manager has significant discretion as to the implementation of the Company's objectives and policies.

• The Company's Shares are not registered under the Securities Act, so they are subject to heightened restrictions on transferability and resale.

• There is no market for the Shares, and Shareholders bear the risks of owning Shares for an extended period of time due to limited repurchases.

• Shareholders have limited liquidity and may be limited in their opportunity to have their Shares repurchased and may not receive a full return of their invested capital if they elect to have their Shares repurchased by the Company.

• There is no public trading market for the Shares; therefore, a Shareholder's ability to dispose of its Shares will likely be limited to repurchase by the Company. If a Shareholder sells its Shares to the Company, the Shareholder may receive less than the price it paid.

• Holders of Shares do not have control or influence over Company policies, operations or acquisitions or the decision to conduct Share repurchases or the selection of Service Providers (as defined below). Further, under certain circumstances, the Company may amend its second amended and restated limited liability company agreement (as amended, restated, supplemented or otherwise modified from time to time) (the "LLC Agreement") without Shareholder approval and Shareholders are not entitled to vote for the election of directors.

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#### Risks Related to Owning and Managing a Platform of Underlying Asset-Backed Instruments
• The Company faces heightened risks relating to owning and managing Asset-Backed Instruments.

• The Company's lending platform manages a significant amount of asset-based securities ("ABS") in a range of asset classes that subject them to further risks, including, among others, credit risk, liquidity risk, interest rate and other market risk, operational risk, structural risk, sponsor risk, monoline wrapper risk and other legal risk.

• The Company faces heightened risk because its strategy concentrates its assets in Asset-Backed Instruments. Because a significant amount of the Company's aggregate capital could be invested in a single Asset-Backed Instrument, a loss with respect to such Asset-Backed Instrument could have a significant adverse impact on the Company's capital.

• The Company's Portfolio Assets may also be impacted by interest rate fluctuations which may be beyond the control of the Company.

• The Company faces risks by originating loans if then unable to sell, assign or close a transaction for such loan.

• Being a control person in a company may give rise to increased risk of liability for the Company and the Operating Manager, which could adversely affect a portion of the Company's assets.

• There is no restriction on credit quality for Company acquisitions of debt instruments and the amount and timing of payments with respect to loans are not guaranteed, which may cause losses.

• Acquiring Asset-Backed Instruments puts the Company at risk of any adverse changes of those assets.

• The Company faces risks associated with opportunities in loans secured by real estate.

• The Company faces risks associated with acquiring residential mortgage-backed securities.

• The Company may face risks associated with purchasing participation interests in debt instruments.

• The Company's business may be affected by prepayment risk.

#### Risks Related to Strategic Acquisitions in Securities and Other Asset-Backed Instruments
• The Company's acquisition of Asset-Backed Instruments may involve risks that differ from or are greater than risks associated with other types of instruments. Such risks include, among others, credit risk, liquidity risk, interest rate and other market risk, operational risk, structural risk, sponsor risk and other legal risk.

• Asset-Backed Instrument transactions often involve intricate legal documentation covering collateral rights, securitization terms, and performance obligations. If any of these contracts prove unenforceable due to legal deficiencies, contradictory provisions, or jurisdictional incompatibilities, the Company could be exposed to potential loss of collateral, delayed recoveries, or costly litigation. Contract amendments demanded by counterparties, regulators, or courts may further reduce the Company's anticipated returns. Although the Company employs legal specialists to review and negotiate key agreements, contract failures cannot be entirely ruled out, particularly in foreign or rapidly evolving markets.

• Positions in smaller and middle-market companies can involve heightened risks due to, among other factors, lack of resources, wider price fluctuations and reduced liquidity from lower frequency and volume of trading in the company's securities.

• Positions in stressed and distressed assets are speculative in nature and may incur significant or total losses for the Company.

• Bankruptcy and insolvency cases involve many significant risks and may lead to material or total losses on the Company's positions.

• The Company faces portfolio company risk, especially with respect to those assets which are stressed, distressed, in special situations or otherwise experiencing financial difficulties.

#### Additional Risks Related to the Operation of the Company Generally
• Due to conflicts between Pacific Investment Management Company LLC ("PIMCO" or the "Operating Manager") or its affiliates and the Company regarding allocation of acquisition opportunities, there is no guarantee that the Company will participate in specific PIMCO opportunities, which may harm the Company's performance.

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#### Tax Risks Related to the Company, the Shares and the Company's Portfolio Assets
• The Company's acquisition decisions will be based on economic considerations which could result in adverse tax consequences.

• Shareholders may be subject to taxes on phantom income.

• The Company faces the risk of owning SPVs (as defined below) in a manner that is not fully tax efficient because certain jurisdictional rules or other factors may limit its ability to hold SPVs in the most tax efficient manner.

• If Series II were to be treated as a corporation for U.S. federal income tax purposes, the value of the Company's Series II Shares (as defined below) might be adversely affected.

• Series II and its corporate subsidiaries face the risk of a tax audit which may have adverse consequences for Series II and/or the Series II Shareholders. The term "Series II Shareholders" refers to holders of the Company's Series II Shares. There are seven types of shares available to Shareholders through Series II: Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares and Standard B Shares (collectively, the "Series II Investor Shares");

• Series I faces the risk of a tax audit which may have adverse consequences for Series I and/or the Series I Shareholders. The term "Series I Shareholders" refers to holders of our Series I Shares (as defined below). There are five types of shares available to Shareholders through Series I: Anchor I Shares, Anchor II Shares, Anchor II-B Shares, Standard A Shares and Standard B Shares (collectively, the "Series I Investor Shares" and, together with the Series II Investor Shares, the "Investor Shares").

#### Risks Related to Regulatory Matters
• The Company has certain reporting obligations not applicable to private companies. The Company needs to make significant capital expenditures to be in compliance with certain regulations not applicable to private companies. Failure to comply with such regulations may have an adverse effect on the Company's business.

• The Company faces the risk that the Operating Manager or any affiliated entities may experience a compliance failure, which would adversely affect the Company.

• The Company faces the risk that the legal and regulatory fields will change in a manner which adversely affects the Company.

#### Basis of Presentation
• All dollar amounts included herein except share prices are presented in thousands unless otherwise noted.

#### Part I

#### Item 1. Business

#### Business Overview
The Company is a lending platform engaging in asset-based finance in the U.S. and Europe. PIMCO, across its complex, defines asset-based finance as a platform that primarily intends to fund, finance and structure Asset-Backed Instruments outside the traditional corporate and commercial real estate lending markets. The term "Asset-Backed Instruments" refers to loans and other instruments that are collateralized by, or payable from a stream of payments generated by, a specified pool of real assets, financial assets, insurance assets or other assets.

Our objective is to build a diversified portfolio of Asset-Backed Instruments through our wholly or majority-owned subsidiaries. We intend to seek opportunities in Asset-Backed Instruments, focusing on assets outside the traditional corporate and commercial real estate lending markets. We believe that there is a robust opportunity set for private capital to engage asset-based lending markets where bank retrenchment and Basel III regulatory headwinds are prevalent as originators are struggling to provide liquidity—an issue exacerbated by factors, including (i) scarce capital when volatility emerges and (ii) continued changes to regulatory and accounting expectations for financial institutions, such as Basel I/II/III/IV and Current Expected Credit Losses ("CECL"), among others.

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The Company's strategy is structured to offer access to differentiated Asset-Backed Instruments, including consumer loans (*e.g.*, student loans, auto loans, credit card receivables and mortgages), non-consumer loans (*e.g.*, nonperforming loan financing, trade financing, asset-based lending, royalties, small and medium-sized enterprise lending and risk transfer) and annuities and other insurance or reinsurance-related assets (collectively, the "Insurance Assets"), as well as select Platform Acquisitions (as defined below) of specialty lenders, servicers, insurers, or reinsurers. The Company acquires primarily private income-producing assets from the aforementioned areas. The Company principally seeks to acquire (or otherwise gain exposure to) individual income streams where risk of capital loss is deemed low or in pools of loans where returns adjusted for expected losses are attractive, even under stress scenarios. Over the long term, the returns of the Company's strategy are expected to consist of a combination of capital gains and income. The Company commenced its operations in July 2025. For the next twelve months, the Company plans to continue to acquire Portfolio Assets using proceeds of subscriptions from the Shareholders, including the Seed Investor (as defined below). The term "Portfolio Assets" refers to any assets acquired by the Company.

In connection with its plan of operation, the Company has entered into an expense limitation and conditional reimbursement agreement (as amended, restated, supplemented or otherwise modified from time to time, the "Reimbursement Agreement") with the Operating Manager pursuant to which the Operating Manager may elect to pay certain of the Company's expenses, including certain Organizational and Offering Expenses (as defined below) on the Company's behalf (the "Expense Support"). To the extent an Expense Support is made, following any calendar month in which the Specified Expenses (as defined below) are below 0.75% of the Company's net assets on an annualized basis, the Company shall reimburse the Operating Manager, fully or partially, for the Expense Support, but only if and to the extent that Specified Expenses plus any "Reimbursement Payments" (as defined below) do not exceed 0.75% of the Company's net assets at the end of each calendar month on an annualized basis, until such time as all Expense Supports made by the Operating Manager to the Company within three years prior to the last business day of such calendar month have been reimbursed. Any payments required to be made by the Company in the prior sentence shall be referred to herein as a "Reimbursement Payment." Accordingly, the Operating Manager has borne the expenses related to the Company's operations and as the Company's net asset value ("NAV") grows, the Operating Manager intends to seek reimbursement pursuant to the Reimbursement Agreement.

"Specified Expenses" means all expenses incurred in the business of the Company with the exception of (i) the Management Fee (as defined below), (ii) the Performance Fee (as defined below), (iii) the combined annual distribution fees and shareholder servicing fees of the Company and the Related Acquisition Vehicles (as defined below), (iv) the Dealer Manager Fees (as defined below) (including selling commissions), (v) expenses related to any Portfolio Assets acquired by the Company and the Related Acquisition Vehicles, including, without limitation, brokerage costs or other acquisition-related out-of-pocket expenses (regardless of whether the transactions are consummated), (vi) ordinary corporate operating expenses of the Company and the Related Acquisition Vehicles, (vii) interest expenses, commitment fees, or other expenses related to any leverage incurred by the Company, (viii) taxes, (ix) certain insurance costs, (x) Organizational and Offering Expenses, (xi) certain non-routine items (as determined in the sole discretion of the Operating Manager) and (xii) extraordinary expenses (as determined in the sole discretion of the Operating Manager).

Shares are offered on a monthly basis at NAV per Share (generally measured as of the end of the month immediately preceding the date of the allocation of Shares to subscribing Shareholders), plus any applicable upfront commissions and fees (the "Dealer Manager Fees") payable to the PIMCO Investments LLC (the "Dealer Manager"). For Series I, there are: Anchor I Shares, Anchor II Shares, Anchor II-B Shares, Standard A Shares, Standard B Shares, E Shares and V Shares (collectively, the "Series I Shares"). For Series II, there are: Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares, Standard B Shares, E Shares and V Shares (collectively, the "Series II Shares").

We formed two separate Series pursuant to the Delaware Limited Liability Company Act (as amended from time to time, the "LLC Act") and although the U.S. Internal Revenue Service ("IRS") has only issued proposed regulations relating to series entities, each Series is intended to be treated as a separate entity and have a different tax classification for U.S. federal income tax purposes. Under Delaware law, to the extent the records maintained for a Series account for the assets associated with such Series separately from the other assets of the Company or any other Series, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to such Series are segregated and enforceable only against the assets of such Series and not against the assets of the Company generally or any other Series. Series I and Series II are expected to acquire, directly or indirectly, the same

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portfolio of Portfolio Assets on a *pro rata* basis. Series I has elected to be treated as a corporation for U.S. federal income tax purposes and Series II has elected to be treated as a partnership for U.S. federal income tax purposes. The state tax treatment of a series limited liability company depends on the laws of each state, and it is possible that a particular state may treat Series I and Series II as a single entity for state tax purposes or may treat Series I or Series II as separate entities but classified differently than the IRS does for U.S. federal income tax purposes. The Series conduct the business of the Company jointly and although they have the ability and intention to contract in their own names, they do so jointly and in coordination with one another. Neither Series has directors, officers or employees, but each is overseen by the Board of Directors of the Company (the "Board") and managed by the Operating Manager.

#### Business Strategy
The business strategy of the Company is to acquire loans, mortgages, leases, hard assets, royalties, Insurance Assets and other forms of credit provision or contractual cash flow. The Company primarily seeks to make acquisitions in individual income streams where risk of capital loss is deemed by it to be low or in pools of loans where we expect returns adjusted for expected losses to be attractive, even under stress scenarios. Over time, the returns of the strategy are expected to consist of a combination of capital gains and income.

The Company's strategy is designed to facilitate the fluid deployment and redeployment of capital across a broad array of asset-backed instruments. We believe the breadth of opportunity across consumer and non-consumer categories allows PIMCO and the Company to exercise discipline, avoiding areas that are too competitive, while focusing instead where credit supply has temporarily retrenched, become dislocated or where barriers to entry exist. Our strategy is also characterized by flexibility with respect to financing of assets that may be higher in credit quality or in the capital structure, and where they are deemed to offer attractive risk/reward profiles. At the same time, the Company aims to focus its acquisition universe specifically on markets where we believe investors have limited to no exposure, namely in private debt markets outside of corporate and commercial real estate sectors.

Unless otherwise required by context, all references to the Company's acquisition strategy or operations should be read to refer to the acquisition strategy or operations of the Company and/or of one or more special purpose vehicles ("SPVs") which the Company holds. Other vehicles managed or sponsored by PIMCO or its affiliates may from time to time co-invest alongside the Company, in the Operating Manager's sole discretion.

The Company may (but is not required to) hold a portion of its Portfolio Assets through one or more entities electing to be treated as real estate investment trusts ("REITs") within the meaning of Section 856 of the Code (the "REIT Subsidiaries"), including a REIT Subsidiary managed and/or sponsored by PIMCO or its affiliates. The Company may also contribute any of its assets to subsequent securitizations, such as collateralized loan obligations ("CLOs"), collateralized debt obligations ("CDOs") and RMBSs, or other structures, such as master limited partnerships, to be managed or advised by PIMCO, its affiliates and/or third-party collateral managers, either directly or through warehouse facilities, with the Company potentially holding some or all of the resulting tranches or interests. In addition, the Company may opportunistically obtain indirect exposure to such loans and assets, for example by acquiring Structured Instruments (as defined below), financing arrangements related to Structured Instruments or derivatives, including through acquisitions of one or more investment vehicles managed or sponsored by PIMCO or its affiliates.

The Company has acquired, and will continue to seek to acquire and hold, equity interests, and potentially controlling equity interests, in Platform Companies (as defined below) that originate, underwrite, and/or service the asset types that fall into its areas of focus. The Company may realize its equity interests in a Platform Company, in whole or in part, through sale of the Platform Company in any number of ways, including, for example, in an initial public offering, on the secondary market, and/or cross trades to affiliates, or a disposition of assets held by the Platform Company. There can be no assurance any such exits will be consummated or consummated in the manner detailed herein. The Company may also obtain primary or secondary positions in or otherwise gain exposure to the assets originated and/or serviced by the Platform Companies. For the avoidance of doubt, the Company may also acquire debt securities of the Platform Companies.

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The Company may also engage in certain equity acquisitions, and potentially controlling equity interests, with debt-like characteristics, including cash-flow-producing assets. In addition, the Company's assets may convert to other types of assets after acquisition. For example, mortgage loans may convert to real estate holdings and corporate loans may convert to equity holdings.

The Company's acquisitions may be newly created, and may be specifically designed for the Company, or existing and may be acquired on the secondary market or on a primary basis through the direct provision of capital such as through companies acquired, or created, and owned by or otherwise affiliated with the Company, other PIMCO Clients/funds or PIMCO. "PIMCO Clients" refers to the applicable fund, account, entity, vehicle, product and/or similar arrangement sponsored, managed or advised by PIMCO.

In addition to acquiring the asset classes described above, the Company has discretion to supplement its principal strategy by acquiring any other securities or assets within the asset-based finance or any other sector that the Operating Manager or the Board believe may offer attractive trading or acquisition opportunities, including public securities and other assets.

Moreover, the Company, in its sole discretion, may maintain a portion of the portfolio in tradable securities for liquidity management purposes. In this regard, the Company may acquire any public or private securities it deems appropriate. Without limiting the foregoing, the Company may invest in cash management vehicles managed by the Operating Manager or an affiliate thereof to seek to provide income, preservation of capital and liquidity (each, a "Cash Management Vehicle").

The Company's acquisition program is not restricted to acquisitions of any particular credit quality, and the Portfolio Assets could span the entire credit rating spectrum. The Company also may acquire or otherwise gain exposure to any tranche of securities or other instruments.

While the Company is focused on or otherwise gains exposure to U.S.- and European-based opportunities, the Company is not subject to any guidelines or limitations relating to geographical concentration and may make substantial acquisitions of non-U.S.- and/or non-European-based opportunities, including acquisitions of Latin America- and Asia-based opportunities.

Other investment vehicles managed by the Operating Manager of an affiliate thereof may from time to time invest in the Company, in the Operating Manager's sole discretion.

Investors should be aware that, unless otherwise specified herein or in the LLC Agreement, the Company is not limited in its acquisition and trading activities. See "*— Acquisition Guidelines*" below.

#### Governance and Management
The Board's corporate governance responsibilities are based on the LLC Agreement. The Board oversees the management of the Company and the performance of the Operating Manager. See "*Item 10. Directors, Executive Officers and Corporate Governance*." Actual or potential conflicts of interest will arise from time to time between the Company, PIMCO and other PIMCO Clients. See "*Item 13. Certain Relationships and Related Transactions, and Director Independence*—*Potential Conflicts of Interest*" and "*Item 13. Certain Relationships and Related Transactions, and Director Independence*—*Conflicts of Interest*." The Company has protocols for handling actual and potential conflicts of interest and our independent directors may be called upon from time to time to approve specific conflicts as members of the Audit Committee (the "Audit Committee") or the conflict may be otherwise addressed in accordance with our LLC Agreement.

#### The Operating Manager
Pursuant to the terms of the second amended and restated operating agreement between the Operating Manager and the Company (as further amended, restated, supplemented or otherwise modified from time to time, the "Operating Agreement"), the Operating Manager is an investment adviser registered with the SEC under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), manages the Company on a day-to-day basis (subject to the directions of the Acquisition Committee (as defined below) and to the supervision of the Board). The Operating Manager provides certain management, administrative and advisory services to the Company related to funding, financing

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and/or structuring the Portfolio Assets (including the Asset-Backed Instruments); *provided*, *however*, that the Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, a committee of the Board, as applicable) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager.

Since its founding in 1971, PIMCO has provided discretionary investment management services to clients throughout the world. PIMCO began as a manager of fixed income portfolios and has evolved to include active management of equities, open-end funds, closed-end funds (exchange listed funds and interval funds), exchange traded funds, collective investment trusts, private investment funds (such as private equity-style funds and hedge funds) and structured products. PIMCO is a majority-owned indirect subsidiary of Allianz SE, a publicly traded European insurance and financial services company. As of December 31, 2025, PIMCO had approximately $2.26 trillion in assets under management ("AUM"), including $1.84 trillion in third-party client assets.

In order to enhance the value of its client's assets, PIMCO aims to leverage its deep underwriting capabilities, long history of managing through a variety of market environments and macroeconomic and policy analysis track record. Given its history and scale underwriting credit risk across credit sectors and over economic cycles, PIMCO sources private income-producing assets from multiple channels including (i) extensive direct relationships with borrowers across the globe, (ii) established advisor, legal and accounting relationships, (iii) banks/broker-dealers for whom PIMCO is often a preferred counterparty, (iv) as a reliable and credible finance provider to sponsors, and (v) as a strategically important partner to capital-light operators. The depth of its relationships and the breadth of the strategy minimize the risk that PIMCO is captive to any particular channel for sourcing assets, should risk/reward profiles deteriorate. Asset-Backed Instruments sourced from these platforms that are pursued by PALCO are pursued at the recommendation of the Operating Manager in its discretion pursuant to its applicable policies and procedures, including its allocation process, and are subject to review and approval, consistent with the established process, of the Acquisition Committee (as defined below). None of PIMCO's results can be attributed to the Company and there is no guarantee of similar results for the Company. The Company commenced its operations in July 2025 and, therefore, has limited operating history.

#### The Acquisition Committee
PIMCO has established the Company's acquisition committee (the "Acquisition Committee") to seek to incorporate cross-sector perspectives and relative value input with respect to PIMCO as a whole. The Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, a committee of the Board, as applicable) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager, as well as overseeing the ongoing performance of Portfolio Assets on a periodic basis. The composition, structure and/or operations of the Acquisition Committee may change from time to time (or the Company may cease to have the Acquisition Committee or a similar committee), each without the consent of or notice to the Shareholders.

#### Market Opportunity
Since the 2008-2009 Great Financial Crisis, the market for asset-backed instruments has grown significantly as banks and non-bank lenders have retrenched from traditional lending activities. In addition, bank failures have underscored the impact of the current economic cycle on the banking system, specifically on regional bank balance sheets, leading banks to de-risk and reduce credit lending appetite, which has created attractive opportunities for non-bank lenders to fill the gap.

Tighter bank regulation, higher capital charges, and changes to loan accounting have led banks to migrate out of various types of lending. Banks are increasingly focused on balance sheet and capital optimization, and we believe a void has been left in the market with commercial finance companies liquidating or converting into banking entities. We believe originators are struggling to provide liquidity, which is an issue exacerbated by factors, including (i) scarce capital when volatility emerges and (ii) continued changes to regulatory and accounting expectation for financial institutions, such as Basel I/II/III/IV and CECL, among others. Bank retrenchment has heightened on the back of the banking crisis, leaving a limited number of players in specialty finance sectors with the growth of the private debt universe largely oriented around corporate markets.

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In addition, the rapid increase in interest rates and the regional bank failures in early 2023 have accelerated banks' focus on the balance sheet and capital optimization and related risks. These conditions have presented a meaningful opportunity to participate in the unwinding of these risk exposures, particularly risk with respect to asset sales and risk transfer opportunities.

The Operating Manager believes that an investment in the Company represents an attractive opportunity for a number of reasons including:

• *Compelling Opportunity*. The recent bank failures have underscored the impact of the rate hiking cycle on the banking system, specifically on regional bank balance sheets. We believe this has tightened and will continue to tighten lending standards amid ongoing bank retrenchment as banks face stricter capital requirements, dampened new loan origination capacity, and ultimately, less risk appetite. As a result, opportunities for non-bank lenders such as PIMCO to invest in these assets and earn attractive compensation have increased significantly.

• *Flexible Acquisition Strategy*. The Company's strategy is designed to facilitate the fluid deployment and redeployment of capital across a broad array of Asset-Backed Instruments. The breadth of opportunity across consumer and non-consumer categories is designed to allow PALCO to exercise discipline, avoiding areas that are overfunded, while focusing instead where credit supply has temporarily retrenched or where barriers to entry exist. We also aim to remain flexible with respect to financing of assets that are either higher in credit quality or in the capital structure, which we determine offer attractive risk/reward profiles. At the same time, the Company aims to focus its acquisition universe specifically on markets where we believe investors have limited to no exposure, namely in private debt markets outside of corporate and commercial real estate sectors.

• *Track Record in Asset-Based Lending Markets*. PIMCO has deep roots and was an early investor among non-bank lenders, across asset-based lending markets. PIMCO has deployed over $230 billion across private residential credit and specialty finance markets dating back to the 2008-2009 Great Financial Crisis and are supported by a deep team of over 50 portfolio managers focused on these markets. The combination of our dedicated public credit franchise and our private market origination, underwriting and analytics capabilities allow PIMCO to generate attractive risk-adjusted returns in a dedicated private credit strategy. PIMCO can also draw from its deep experience arranging highly structured assets and securitizations, having executed over $190 billion in securitizations since 2018.

• *PIMCO's Integrated Platform*. PALCO believes it is well positioned to execute this strategy, given the differentiated combination of PIMCO's integrated platform, scale, structuring and financing expertise and comprehensive analytics alongside its established opportunistic credit platform. PIMCO believes this has made the firm a natural counterparty for many borrowers, originators and sellers of credit risk. It has also afforded PIMCO a market presence and a reputation for dealing with a broad array of sometimes complex illiquid credit assets that may require intensive ongoing asset management. In addition, PIMCO has been establishing and growing its partnership with non-bank originators and servicers since the 2008-2009 Great Financial Crisis across areas fundamental to the opportunity set of Asset-Backed Instruments, providing additional sourcing and servicing benefits.

• *Differentiated Sourcing Capabilities*. Through its market presence and scale, PIMCO has developed a robust sourcing platform with deep relationships across a variety of key market players including originators, bank leadership teams, intermediaries/brokers, and policy makers. With this foundation, we are able to engage in a diversified sourcing model that does not rely on one single tool but instead a variety, including secondary market opportunities and portfolio sales, captive origination platforms, and forward flow arrangements.

• *Experienced Acquisition Team*. The Operating Manager's team is currently comprised of over fifty (50) professionals based in North America and Europe. Furthermore, the Acquisition Committee includes eight voting members and one non-voting member, each with deep specialty finance experience. The Acquisition Committee is responsible for reviewing and approving certain transactions and asset

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management decisions; see "*Item 1. Business — Our Approach to Acquiring Portfolio Assets — Acquisition Process*" below. Furthermore, the Acquisition Committee is augmented by specialist groups, including PIMCO's teams across corporate credit, structured credit, and real estate, among others. The composition, structure and/or operations of any of the Acquisition Committee may change from time to time (or the Company may cease to have an Acquisition Committee), each without the consent of or notice to Shareholders. <br>

• *Capital Preservation and Risk Management*. PIMCO believes that its strategy, characterized by a disciplined acquisition process with a focus on downside protection and seeking attractive risk-adjusted returns, should enhance its ability to achieve successful outcomes. Furthermore, the Company's focus on downside protection through an emphasis on income-generating assets is expected to result in a high initial cash current yield, which coupled with ongoing principal amortization typical for the majority of the acquisition universe, has the potential to limit the impact of broader market volatility on Company performance.

In summary, the Company seeks to primarily focus on income-producing private assets with the ability to acquire Platform Companies (as defined below), ensuring alignment of incentives as well as additional sourcing and management benefits. It further seeks to deploy capital fluidly across Asset-Backed Instruments and over economic cycles.

#### Our Approach to Acquiring Portfolio Assets

#### The Acquisition Strategy
The Company's strategy is structured to offer access to differentiated Asset-Backed Instruments, including consumer loans (*e.g.*, student loans, auto loans, credit card receivables and mortgages) and non-consumer loans (*e.g.*, nonperforming loan financing, trade financing, asset-based lending, royalties, small and medium-sized enterprise lending and risk transfer), as well as select Platform Acquisitions (as defined below) of specialty lenders, servicers, insurers, or reinsurers. The Company acquires primarily private income-producing assets from the aforementioned areas. The Company principally seeks to acquire (or otherwise gain exposure to) individual income streams where risk of capital loss is deemed low or in pools of loans where returns adjusted for expected losses are attractive, even under stress scenarios. Over the long term, the returns of the Company's strategy are expected to consist of a combination of capital gains and income.

This opportunity set also includes residential loans, consumer loans, such as credit card receivables, automobile loans, student loans and unsecured consumer credit loans, commercial finance loans, such as small and medium-sized enterprise ("SME") loans and trade financings, servicing, including servicing rights, or similar rights relating to such loans, including warrants or other equity kickers associated with loans, and/or other cash-flow or income-producing assets, including transportation and commercial equipment, leases, intellectual property royalties, and Insurance Assets, and other assets, such as non-performing loans and dividend-paying private company securities, as well as "platform" opportunities that are existing or expected to lead to the formation of future portfolio companies primarily engaged in the business of originating and/or servicing loans and other assets within the consumer and non-consumer categories, insurance, or reinsurance (each, a "Platform Company"). See "*Item 1A. Risk Factors*."

**An investor may lose all of its money invested in the Company.** The Company expects to employ leverage for various purposes, including to facilitate acquiring assets, to fund repurchases and to otherwise support the strategy of the Company. See "*Item 1. Business—Our Approach to Acquiring Portfolio Assets—Acquisition Guidelines*" for more detail regarding the Company's utilization of leverage.

There can be no assurance that the Company will execute on its strategy or not lose capital.

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#### Acquisition Sourcing
PIMCO and the Company believe that deal sourcing is and will continue to be a key component of the Company's strategy, and that the experience of the Company's acquisition team and the breadth of PIMCO's investment professionals, including PIMCO's substantial resources dedicated to the asset-based finance residential mortgage and specialty finance markets, support such sourcing efforts. In private residential credit, PIMCO has eleven portfolio managers globally. Through diligence of multiple non-bank mortgage originators and servicing platforms, the team has well-established relationships with over forty mortgage originators and servicers. The asset-based/specialty finance team includes over fifty portfolio managers globally who have deployed over $26 billion since 2014 into private specialty finance assets and $204 billion since 2014 across private residential loans. The team has established over eighty platform and servicing relationships across consumer, auto, student, aircraft leasing, data infrastructure and other consumer and non-consumer asset types. Additionally, the Company's strategy is expected to benefit from PIMCO's Capital Markets Team that includes a centralized origination team, focused on increasing deal flow for PIMCO strategies via deep relationships with banks, dealers and other third parties across markets. PIMCO believes that the Company benefits from the extensive and longstanding relationships that PIMCO has established with a wide variety of global financial institutions, companies and industry participants. In addition, PIMCO's comprehensive platform provides sellers of risk with a multifaceted solution for assets across risk, return and liquidity. PIMCO believes the breadth of the platform offers a competitive advantage in partnering, sourcing and underwriting opportunities without relying on one single sourcing channel and/or approach.

PIMCO also believes that its ability to source and exit opportunities through public and private markets is a benefit to the Company. In particular, PIMCO may source opportunities through public securitizations by accessing the underlying assets and eventually migrating those opportunities into the private domain or acquiring private assets and exiting in the public market via securitizations. In certain cases, PIMCO may engage a joint venture or other partner to help source potential Company acquisitions and generally pay such partner fees or other compensation that typically is borne by the Company. PIMCO also believes that its reputation as a trusted partner should result in an ability to source a significant number of opportunities for the Company.

#### Acquisition Process
PIMCO seeks to implement a consistent, disciplined asset selection process centered on asset-level analysis of the intrinsic value of opportunities. PIMCO intends its acquisition process to focus on detailed asset-level and deal structure underwriting with an emphasis on loan level analysis, pricing and structuring, asset management and potential exit strategies. In addition, PIMCO believes that macroeconomic risks remain extremely important and, as a result, PIMCO believes that it can leverage the firm's macro insights in connection with analyzing opportunities. Opportunities have been, and will continue to be, sourced and scrutinized by sector specialist teams before being reviewed by the Acquisition Committee. Opportunities are evaluated on a variety of parameters, including asset type, geography, position in the capital structure, liquidity, return potential and risks.

PIMCO has typically performed, and will continue to perform, significant analysis on the structuring and any embedded options of opportunities. This process typically entails a focus on credit-intensive security selection in the residential mortgage credit markets and other loan markets, including due diligence of collateral quality, structure risks, interest rate risks, regional housing economics and evaluation of origination and servicing risks. This process is also typically driven by an analysis of potential Portfolio Assets, with a special focus on loss expectation and loss timing. PIMCO employs a multi-disciplinary approach that combines quantitative models with a subjective approach. Research and relative-value analysis typically is generated using in-house expertise and analytical tools developed for the portfolio managers by sector specialists, securitization experts, prepayment modelers, and credit specialists and analysts. Loss expectations usually are determined by employing proprietary loan-level quantitative models, although model projections may also be adjusted based on analysis of qualitative factors, such as servicer practice or relevant regulatory or policy changes.

PIMCO generally evaluates asset-based opportunities through a detailed analysis of, among other things and to the extent relevant to a prospective opportunity, the value of prospective opportunities and any underlying collateral through the use of proprietary models, site visits, automated valuation model analyses, appraisals, broker opinions or otherwise; collateral quality; loss severities, loss timing, recoveries, cure rates, prepayment risk and other relevant factors; historical performance analysis including trend analysis on statistics such as delinquencies and losses; structural risks; servicing risks; loan servicing records; loan-level cash flow models; loss ratios to determine, among other things, the timing and the manner of loss distribution under different scenarios utilizing proprietary delinquency, default and loss curves based on historical patterns; state-specific liquidation timelines; review of local market rental and sales comparables; environmental, zoning and physical property condition reports and any qualitative factors that

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may alter loss expectations and cash flow timing with respect to potential assets, such as the regulatory and legislative environment and servicer practices. This process also often includes the review and assimilation of information from a variety of third-party sources, including any operating partners or special consultants retained by the Company, various statistical services and interaction with the management of certain portfolio companies. Finally, legal, tax and regulatory risks relevant to specific assets are typically considered as part the analysis.

While PIMCO expects to follow the analytical methodologies, strategies and processes discussed above, such methodologies, strategies and processes represent examples only, and do not constitute an exclusive list of methodologies, strategies and processes that may be employed by PIMCO. Not all of the foregoing methodologies, strategies and processes may be utilized at the same time or in the same proportions, and PIMCO may modify and/or implement additional methodologies, strategies or processes as appropriate for different Portfolio Assets or in response to changing market conditions. In addition, PIMCO may rely on limited or incomplete information when conducting due diligence, including with respect to opportunities with accelerated timelines. See "*Item 1A. Risk Factors—Risks Related to Owning and Managing a Platform of Underlying Asset-Backed Instruments—Some Asset-Backed Instrument acquisitions occur on an expedited basis which may result in limited financial information being available, and limited time to conduct analysis.*"

#### Acquisition Guidelines

#### Valuation of Portfolio Assets – Determination of Net Asset Value
The Company has adopted the Operating Manager's valuation policy as the valuation policy of the Company. From time to time, the Company may make changes to the valuation policy. Any material changes will be made with the consent of the Board.

The Administrative Agent is responsible for the calculation of the NAV of each type in accordance with applicable law and the Company's valuation policy, which may be amended from time to time.

The NAV of the Company is calculated by the Administrative Agent, its delegate or another independent Service Provider at the end of each month.

The following describes the Company's valuation policy which may be changed from time to time. The NAV of the Company is calculated by taking the value of the Portfolio Assets and other assets of the Company and subtracting all liabilities, including accrued expenses, the Management Fee, the Performance Fee and any contingencies for which reserves are determined to be required. The Company's assets are valued as follows:

(1) assets for which market quotations or other market-based valuation methods are not readily available (which may include private transactions, trade claims, mortgage loans, business loans, consumer loans, leases and other receivables and assets) are generally valued at fair value as determined in good faith by the Operating Manager and in a manner consistent with generally accepted accounting principles in the United States ("GAAP"), including Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosure ("ASC Topic 820"), issued by the Financial Accounting Standards Board. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date;

As there is no single standard for determining fair values of assets that do not have a readily available market price, in many cases, such fair values may be best expressed as a range of fair values from which a single estimate may be derived in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each acquisition while employing a valuation process that is consistently followed. Determinations of fair value involve subjective judgments and estimates;

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The Company may also incorporate industry-accepted valuation methodologies, such as an income approach and market approach. The income approach derives fair value based on the present value of cash flows that a business or security is expected to generate in the future. The market approach relies upon valuations for comparable public companies, transactions or assets, and includes making judgments about which companies, transactions or assets are comparable. A blend of approaches may be used to determine an estimate of fair value;

(2) securities, loans or other assets traded on an exchange are valued generally at the official closing price or the last reported sale price on the exchange or over-the-counter market that is the primary market for such security, or if no sales or closing prices are reported, based on the mean of the last available bid and ask quotation on the exchange, market or quotes obtained from a quotation reporting system, established market makers or pricing services;

(3) certain securities or assets for which market quotations or other market-based valuation methods are not readily available may be valued with reference to other securities or indices; and

(4) other valuation methods, as needed.

Where valuations are not provided by an independent source, the Administrative Agent may consult with and may ultimately rely entirely on the Operating Manager or its affiliates in determining the value of Company's assets, although the Administrative Agent is not required to do so. The Company may engage one or more independent valuation firms to provide assurance regarding the reasonableness of a valuation for an asset that does not have a readily-available market price as of the relevant measurement date. In cases where the Company engages an independent valuation firm to value or review valuations of assets, the cost of such valuation firm is expected to be borne by the Company.

#### Our Structure
The following is a summary chart of our corporate structure. This chart is a simplified version of our structure and does not include all legal entities in the structure.

![LOGO](g112132g0320222045743.jpg)

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|:---|:---|
| 1 | As of the date hereof, PIMCO GP LXXXII, LLC holds all of 80 V Shares, which are non-economic shares that have certain rights and privileges, including the exclusive right to appoint and remove directors of the Board. V Shares are held only by PIMCO GP LXXXII, LLC and/or its affiliates, and are not being offered to other investors.  |

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2 Certain third-party investors in the private offering hold certain Class of Shares offered for anchor investors.

3 Series I has elected to be treated as a corporation for U.S. tax purposes.

4 Series II has elected to be treated as a partnership for U.S. tax purposes.

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#### The Board of Directors, Executive Officers and Acquisition Committee
Overall responsibility for the Company's oversight rests with the Board. To the extent permitted by applicable law, the Board may delegate any of its rights, powers and authority to, among others, any committee of the Board, the officers of the Company or the Operating Manager. As of the date of this Annual Report, the Board consists of six members, three of whom are independent directors, as such term is defined in Section 303A.02 of the New York Stock Exchange Listed Company Manual. See "*Item 5. Directors, Executive Officers and Corporate Governance*."

The Company's executive officers or the Acquisition Committee (in each case, through a delegation of authority from the Board) or, in certain cases, a committee of the Board, as applicable, are responsible for making capital allocation decisions proposed by the Operating Manager and overseeing the management of the Company.

#### Operating Agreement
The description below of the Operating Agreement is only a summary and is not necessarily complete. The description set forth below is qualified in its entirety by reference to the Operating Agreement which is filed as an exhibit to this Annual Report.

We have entered into the Operating Agreement pursuant to which the Operating Manager manages the Company on a day-to-day basis (subject to the directions of the Acquisition Committee and to the supervision of the Board). The Operating Manager provides certain management, administrative and advisory services to the Company related to funding, financing and/or structuring the Portfolio Assets (including the Asset-Backed Instruments); *provided*, *however*, that the Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, a committee of the Board, as applicable) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager.

Additionally, under the terms of the Operating Agreement, the Operating Manager is responsible for performing (or causing to be performed) such services and activities relating to the assets and operations of the Company, the Series and the Company's subsidiaries (referred to in this section titled "*Operating Agreement*" as the "Subsidiaries") as may be appropriate, including, without limitation;

• originating and recommending opportunities to acquire Portfolio Assets, consistent with the business objectives and strategy of the Company, the Series and the Subsidiaries;

• monitoring and evaluating the Company's, the Series' and the Subsidiaries' Portfolio Assets;

• analyzing and investigating potential dispositions of Portfolio Assets, including realization of the Company's assets during a wind down and/or liquidation of the Company's affairs, identification of potential acquirers and evaluations of offers made by such potential acquirers, but excluding dispositions in connection with securitizations;

• structuring of acquisitions of Portfolio Assets;

• establishing, acquiring or acting through special purpose vehicles or subsidiaries (including subsidiaries controlled by the Company or a Series) that do not involve securitizations;

• identifying bank and institutional sources of financing for the Company, each Series and its Portfolio Assets, arrangement of appropriate introductions and marketing of financial proposals;

• preparing, reviewing, executing and entering into, in each case on behalf of the Company or a Series, all agreements and other documents required in connection with the acquisition, disposition or financing of each Portfolio Asset, except those transactions relating to securitizations;

• administering the day to day operations and performing and supervising the performance of such other administrative functions necessary to the management of the Company and the Subsidiaries as may be agreed upon by the Operating Manager and the Board, including, without limitation, the collection of revenues and the payment of the debts and obligations of the Company, the Series and the Subsidiaries and maintenance of appropriate computer services to perform such administrative functions, in each case, for which the Company shall reimburse the Operating Manager;

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• monitoring the performance of Portfolio Assets and, where appropriate, providing advice regarding the management of Portfolio Assets, other than relating to securitizations;

• arranging and coordinating the services (including research services) of other professionals and consultants, including PIMCO personnel;

• making recommendations to the Company with respect to the Company's repurchase offers;

• originating, recommending opportunities to form, acquiring, structuring, coordinating and assisting with managing operations of any joint venture or Portfolio Assets held by the Company, the Series or the Subsidiaries and conducting all matters with the joint venture or other partners consistent with the business objectives and strategies of the Company (including, for the avoidance of doubt, the power to structure joint ventures that provide that any controlling interest of the Company will be forfeited upon termination of the Operating Agreement);

• advising the Company, the Series and the Subsidiaries on, preparing, negotiating and entering into, on behalf of the Company, the Series or the Subsidiaries, applications and agreements relating to programs established by the U.S. government;

• coordinating with the Dealer Manager to arrange marketing materials, advertising, industry group activities (such as conference participations and industry organization memberships) and other promotional efforts designed to promote the Company's, the Series' and the Subsidiaries' business;

• communicating on behalf of the Company and the Subsidiaries with, and servicing, the holders of any of their equity or debt securities, including as required to satisfy the reporting and other requirements of any governmental bodies or agencies or trading markets and to maintain effective relations with such holders;

• counseling the Company in connection with policy decisions to be made by the Board;

• evaluating and recommending to the Board hedging strategies and engaging in hedging activities on behalf of the Company, the Series and the Subsidiaries, consistent with such strategies as so modified from time to time;

• counseling the Company and the Subsidiaries regarding the maintenance of their exclusion from the definition of an investment company under the Investment Company Act, monitoring compliance with the requirements for maintaining such exclusion and using commercially reasonable efforts to cause them to maintain such exclusion from such status;

• furnishing reports and statistical and economic research to the Company and the Subsidiaries regarding their activities and services performed for the Company, the Series and the Subsidiaries by the Operating Manager;

• using information obtained by the Operating Manager in its capacity as operating manager of the Company to provide information to, or for the benefit of, the Shareholders, including without limitation reports on valuation, portfolio positions and portfolio risk profiles;

• providing periodic reports with respect thereto to the Board, including comparative information with respect to such operating performance and budgeted or projected operating results;

• investing and reinvesting any moneys and securities of the Company, the Series and the Subsidiaries (including investing in short term investments pending the acquisition of Asset-Backed Instruments, payment of fees, costs and expenses, or payments of dividends or distributions to Shareholders and members of the Company and the Subsidiaries), subject to the directions and supervision of the Board, and advising the Company and the Subsidiaries as to their capital structure and capital raising;

• assisting the Company and the Subsidiaries in retaining qualified accountants and legal counsel, as applicable, to assist in developing appropriate accounting systems and procedures, internal controls and other compliance procedures and testing systems with respect to financial reporting obligations and to conduct quarterly compliance reviews with respect thereto;

• assisting the Company and the Subsidiaries to qualify to do business in all applicable jurisdictions and to obtain and maintain all appropriate licenses;

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• assisting the Company, the Series and the Subsidiaries in complying with all regulatory requirements applicable to them in respect of their business activities, including preparing or causing to be prepared all financial statements required under applicable regulations and contractual undertakings and all reports and documents, if any, required under the Exchange Act or the Securities Act;

• assisting the Company, the Series and the Subsidiaries in taking all necessary action to enable them to make required tax filings and reports;

• placing, or facilitating the placement of, all orders pursuant to the Operating Manager's acquisition determinations for the Company, the Series and the Subsidiaries either directly with the issuer or with a broker or dealer (including any affiliated broker or dealer);

• handling and resolving all claims, disputes or controversies (including all litigation, arbitration, settlement or other proceedings or negotiations) on the Company's, the Series' and/or the Subsidiaries' behalf in which the Company, the Series and/or the Subsidiaries or their respective Portfolio Assets, may be involved or to which they may be subject arising out of their day to day operations (other than with the Operating Manager or its affiliates), subject to such limitations or parameters as may be imposed from time to time by the Board;

• using commercially reasonable efforts to cause expenses incurred by the Company, the Series and the Subsidiaries or on their behalf to be commercially reasonable or commercially customary and within any budgeted parameters or expense guidelines set by the Board from time to time;

• advising the Company, the Series and the Subsidiaries with respect to and structuring long term financing vehicles for the Portfolio Assets that do not involve securitizations;

• serving as the Company's, the Series' and the Subsidiaries' consultant with respect to decisions regarding any of their financings, hedging activities or borrowings undertaken by the Company, the Series and the Subsidiaries other than those involving securitizations;

• pursuant to delegation from the Board, determining, maintaining, monitoring and evaluating valuations with respect to the Portfolio Assets of the Company and the Series in accordance with the Pricing Policies adopted by the Company (as such is amended, updated and modified from time to time);

• maintaining, monitoring and evaluating the Information Security Program Policy, Privacy Policy and Policy for Handling Client Information, each adopted by the Company;

• providing the Company, the Series and the Subsidiaries with such other services as the Board may, from time to time, appoint the Operating Manager to be responsible for and perform, consistent with the terms of the Operating Agreement;

• using commercially reasonable efforts to cause the Company, the Series and the Subsidiaries to comply with all applicable laws; and

• determining any requirement for Shareholders to provide information in accordance with the LLC Agreement or the principles thereof.

The Operating Manager's services under the Operating Agreement are not exclusive, and the Operating Manager, or any affiliate thereof, is free to furnish similar services to other entities, and it intends to do so, so long as its services to the Company are not impaired. For the avoidance of doubt, the management, policies and operations of the Company and the Series shall be the ultimate responsibility of the Board acting pursuant to and in accordance with the LLC Agreement.

The term of the Operating Agreement will continue indefinitely unless terminated as described below. The Operating Agreement may be terminated upon the affirmative vote of all of our independent directors, based upon unsatisfactory performance by the Operating Manager that is materially detrimental to the Company generally, the Series and the Subsidiaries, taken as a whole. The Company will need to provide the Operating Manager 180 days' written notice of any termination. The Company may also terminate the Operating Agreement "for cause," as described in the Operating Agreement, subject to the terms thereof.

The Operating Manager may terminate the Operating Agreement if the Company becomes required to register as an investment company under the Investment Company Act, with such termination deemed to occur immediately prior to such event. The Operating Manager may also terminate the Operating Agreement by providing the Company with 180 days' written notice. In addition, if the Company defaults in the performance or observance of any material term, condition or covenant contained in the Operating Agreement and the default continues for a period of 30 days after written notice to the Company requesting that the default be remedied within that period, the Operating Manager may terminate the Operating Agreement upon 60 days' written notice.

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In addition, if the Operating Agreement is terminated, the Operating Agreement will obligate the Company to forfeit its voting securities or other controlling interest in any Asset-Backed Instrument, which would likely require the Company to register as an investment company under the Investment Company Act and adversely affect an investment in the Shares. The Operating Agreement requires the Company to redeem any E Shares and/or V Shares if the Operating Agreement is terminated, which could require the Company to liquidate Asset-Backed Instruments at unfavorable times or prices, which may adversely affect an investment in the Shares.

The Operating Agreement may not be terminated for any other reason, including if the Operating Manager experiences a change of control or due solely to the poor performance or under-performance of the Company's operations or Asset-Backed Instruments, and the Operating Agreement continues in perpetuity, until terminated in accordance with its terms. Because the Operating Manager has a significant influence on the affairs of the Company, the Company may be unwilling to terminate the Operating Agreement, even in the case of a default. Even if the Operating Manager's performance does not meet the expectations of Shareholders, and the Company is unable or unwilling to terminate the Operating Agreement, the Company is not entitled to terminate the Operating Agreement and the Company's NAV per Share, which is computed separately for each Class of the Shares of each Series, could decline.

#### Compensation of the Operating Manager
The compensation of the Operating Manager is described below. While the components used to calculate the Management Fee and the Performance Fee apply with respect to each Series and are the same for each Series unless otherwise indicated, the Management Fee rate and/or Performance Fee rate may differ among Classes of Shares within the Series, as indicated below.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Management** <br> **Fee**  | **Performance** <br> **Fee**  | **Minimum** <br> **Initial <br>Purchase <br>Amount**  | **Dealer** <br> **Manager** <br> **Fee**  | **Distribution** <br> **and <br>Servicing <br>Fee**  |
| &nbsp;&nbsp;&nbsp; **Anchor I Shares** | 0.50% | 5.0% | $10000  | 3.5% of <br>transaction price  | N/A |
| &nbsp;&nbsp;&nbsp; **Anchor I-B Shares<sup>(a)</sup>** | 0.50% | 5.0% | $10000  | 3.5% of <br>transaction price  | 0.85% |
| &nbsp;&nbsp;&nbsp; **Anchor II Shares** | 0.75% | 7.5% | $10000  | 3.5% of <br>transaction price  | N/A |
| &nbsp;&nbsp;&nbsp; **Anchor II-B Shares** | 0.75% | 7.5% | $10000  | 3.5% of <br>transaction price  | 0.85%<sup>(c)</sup> |
| &nbsp;&nbsp;&nbsp; **Anchor III Shares** | 0.50%<sup>(b)</sup> | 5.0% | $10000  | 3.5% of <br>transaction price  | N/A |
| &nbsp;&nbsp;&nbsp; **Standard A Shares** | 1.25% | 12.5% | $10000  | 3.5% of <br>transaction price  | N/A |
| &nbsp;&nbsp;&nbsp; **Standard B Shares** | 1.25% | 12.5% | $10000  | 3.5% of <br>transaction price  | 0.85%<sup>(c)</sup> |

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<sup>(a)</sup> On February 26, 2026, the Board unanimously approved the creation and issuance of Anchor I-B Shares.

<sup>(b)</sup> For the Anchor III Shares, the Operating Manager has agreed to waive 100% of the Management Fee for twelve (12)-months beginning July 14, 2025. 

<sup>(c)</sup> The Dealer Manager has waived the distribution and servicing fee effective from October 1, 2025 until such date as determined in its sole discretion. In addition, notwithstanding the ongoing waiver, on March 4, 2026, the Company and the Dealer Manager agreed to an increase in the distribution and servicing fees for Anchor II-B Shares and Standard B Shares from 0.75% to 0.85% per annum of the outstanding Anchor II-B Shares and Standard B Shares. 

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#### Management Fee
So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee (the "Management Fee") monthly in arrears in an amount equal to (i) 1.25% per annum of the month-end NAV attributable to the Standard A Shares and Standard B Shares, (ii) 0.75% per annum of the month-end NAV attributable to Anchor II Shares and Anchor II-B Shares and (iii) 0.50% per annum of the month-end NAV attributable to the Anchor I Shares, Anchor I-B Shares and Anchor III Shares; *provided* that the Management Fee is reduced by any applicable Special Fees (as defined below); *provided*, *however*, that the Management Fee is not reduced for any Other Fees (as defined below). In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares. The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

"Special Fees" mean net consulting or monitoring fees, Portfolio Asset directors' fees, closing fees and advisory services fees and similar fees, whether in cash or in kind, including options, warrants and other non-cash consideration paid to the Operating Manager or any of its affiliates or any employees of the foregoing in connection with actual or contemplated acquisitions of or investments in Portfolio Assets (in each case allocable to the Company).

The Operating Manager may, in its discretion and without further notice to or consent of any Shareholder, afford particular Shareholders more favorable terms with respect to the Management Fee, and such more favorable terms may be set forth in a side letter or other similar written agreement with such Shareholder.

#### Performance Fee
So long as the Operating Agreement has not been terminated, the Operating Manager will continue to be entitled to receive a performance fee (the "Performance Fee"), promptly following the end of each Reference Period (as defined below), equal to (i) 12.5% of the Total Return (as defined below) with respect to Standard A Shares and Standard B Shares, (ii) 7.5% of the Total Return with respect to Anchor II Shares and Anchor II-B Shares and (iii) 5.0% of the Total Return with respect to Anchor I Shares, Anchor I-B Shares and Anchor III Shares, in each case subject to a 5.0% annual Hurdle Amount and a High Water Mark with a 100% Catch-Up (each as defined below).

Specifically, the Operating Manager is entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to:

• *First*, if the Total Return with respect to Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares and Standard B Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount (as defined below) (any such excess, "Excess Profits"), 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 12.5% (with respect to Standard A Shares or Standard B Shares), 7.5% (with respect to Anchor II Shares or Anchor II-B Shares) and 5.0% (with respect to Anchor I Shares, Anchor I-B Shares or Anchor III Shares) of the sum of (x) the Hurdle Amount with respect to such type of Shares for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause (any such amount, the "Catch-Up"); and

• *Second*, to the extent there are remaining Excess Profits, (i) with respect to Standard A Shares or Standard B Shares, 12.5% of such remaining Excess Profits, (ii) with respect to Anchor II Shares or Anchor II-B Shares, 7.5% of such remaining Excess Profits and (iii) with respect to Anchor I Shares, Anchor I-B Shares or Anchor III Shares, 5.0% of such remaining Excess Profits.

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"Total Return" with respect to any Shares for any period since the end of the prior Reference Period shall equal the sum of:

• all distributions accrued or paid (without duplication) on such Shares outstanding at the end of such period since the beginning of the then-current Reference Period; *plus* 

• the change in aggregate NAV of such Shares since the beginning of the Reference Period before giving effect to (x) changes resulting solely from the proceeds of issuances of additional Shares, (y) any fee/accrual to the Performance Fee and (z) applicable expenses for the servicing fee (including any payments made to the Company for payment of such expenses).

For the avoidance of doubt, the calculation of Total Return (i) includes any appreciation or depreciation in the NAV of any relevant Shares issued during the then-current Reference Period, (ii) excludes the proceeds from the initial issuance of such Shares, (iii) treats any withholding tax on distributions paid by or received by the Company generally or any Series as part of the distributions accrued or paid on Shares and (iv) excludes any taxes (whether paid, payable, accrued or otherwise) of any intermediate entities, and may be calculated without taking into account certain deferred tax liabilities of such intermediate entities, as determined in the good faith judgment of the Operating Manager.

"Hurdle Amount" for any period during a Reference Period means that amount that results in a 5.0% of annualized rate of return for such period on the NAV of the Investor Shares outstanding at the beginning of the then-current Reference Period and all Investor Shares (as defined below) issued since the beginning of the then-current Reference Period, calculated in accordance with recognized industry practices and taking into account the timing and amount of all distributions accrued or paid (without duplication) on all such Shares but excluding applicable expenses for the servicing fee. The ending NAV of Investor Shares used in calculating the annualized rate of return is calculated before giving effect to any allocation/accrual to the Performance Fees and applicable expenses for the servicing fee. For the avoidance of doubt, the calculation of the Hurdle Amount for any period excludes any Investor Shares repurchased during such period, which are subject to the Performance Fees upon repurchase. Except as described in the definition of "Loss Carryforward Amount" below, any amount by which the Total Return falls below the Hurdle Amount does not carry forward to subsequent periods. The Operating Manager or its affiliate, as applicable, is not obligated to return any portion of the Performance Fees paid due to the subsequent performance of the Company.

"Loss Carryforward Amount" was equal to zero as of December 31, 2025, and shall cumulatively increase by the absolute value(s) of any negative annual Total Returns and decrease by any positive annual Total Returns; *provided*, that the Loss Carryforward Amount shall at no time be less than zero; *provided*, *further*, that the calculation of the Loss Carryforward Amount excludes the Total Return related to any Shares repurchased during the applicable Reference Period, which Shares are subject to the Performance Fees upon repurchase as described above. For the avoidance of doubt, with respect to Shares repurchased during the applicable Reference Period, the Loss Carryforward Amount shall not include amounts that would have been attributable to such repurchased Shares had such Shares not been repurchased during the applicable Reference Period. The effect of the Loss Carryforward Amount is that the recoupment of past annual Total Return losses offsets the positive annual Total Return gain of the applicable Reference Period for purposes of the calculation of the Performance Fees. This is referred to as a "High Water Mark."

"Reference Period" means each fiscal year commencing on January 1 and ending on December 31; *provided*, that the initial Reference Period shall be the period ending on December 31, 2025.

E Shares shall not be subject to the Performance Fee.

The Operating Manager may, in its discretion and without further notice to or consent of any Shareholder, afford particular Shareholders more favorable terms with respect to the Performance Fee, and such more favorable terms may be set forth in a side letter or other similar written agreement with such Shareholder.

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#### Other Fees
From time to time, the Operating Manager, certain vehicles or companies of the Operating Manager or PIMCO Clients or their affiliates (including Service Providers (as defined below) affiliated with PIMCO (including the Services Company (as defined below)) (collectively, "Affiliated Service Providers")) will provide services to certain persons or entities, including the Company, the Series, and potential and existing Portfolio Assets (including with respect to the Company's acquisition thereof). For example, an insurance company owned by a PIMCO Client and/or alternative investment vehicles could provide insurance products and services to the Company. Related fees payable by the Company, a Series or the Portfolio Assets, as applicable, are retained by, and for the benefit of, the Operating Manager and/or such affiliates and Affiliated Service Providers, and are not applied to reduce the Management Fee.

For the avoidance of doubt, a Portfolio Asset may, on such terms as such Portfolio Assets determines to be in its best interest, provide services to another Portfolio Assets or PIMCO Client (or receive services from another Portfolio Assets or PIMCO Client), and may pay or receive related compensation, without the approval of the Board or any investor of the Company. In certain cases, Affiliated Service Providers or personnel thereof will not be employees of the Operating Manager or its affiliates notwithstanding the fact that they will have attributes of "employees" of the Operating Manager or its affiliates (e.g., they may have dedicated offices at the Operating Manager or an affiliate thereof, use email addresses, telephone numbers and other contact information that are similar to those used by personnel of the Operating Manager or its affiliates, participate in general meetings and events for personnel of the Operating Manager or its affiliates, work on matters for the Operating Manager or its affiliates as their primary or sole business activity and/or be compensated on a weekly or monthly basis rather than on a project basis), and in other cases, such Affiliated Service Providers will be an employee of the Operating Manager or its affiliates with respect to certain activities, even though they are not considered Operating Manager employees, affiliates or personnel for purposes of certain provisions of this Registration Statement, the LLC Agreement and the Operating Agreement, including the portions thereof relating to expenses and fees ("Dual Service Providers").

Dual Service Providers may have a variety of roles and titles with respect to their employment with the Operating Manager or its affiliates, and may include legal, paralegal, finance, tax, accounting, technology, compliance, valuation, operational and asset management professionals and employees, among others. Portfolio managers, analysts and other professionals of the Operating Manager or its affiliates may also serve as Dual Service Providers. The Operating Manager has formed PIMCO Aurora LLC, a subsidiary of the Operating Manager (the "Services Company"), to serve as a Service Provider in exchange for certain fees payable by the Company or the Portfolio Assets. Certain personnel of the Services Company are also employees of the Operating Manager or an indirect subsidiary thereof and these individuals will be providing services on behalf of both the entity that employs them and the Services Company. In the future, some individuals may be employed by and provide services exclusively on behalf of the Services Company, while others will continue to be dual personnel of the Services Company and the Operating Manager or an affiliate thereof. The Company may in the future use other Affiliated Service Providers.

"Other Fees" payable by the Company means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fees, costs and expenses that comprise or constitute Organizational and Offering Expenses or Operating Expenses (each as defined below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) salary, fees, expenses or other compensation of any nature paid by a Portfolio Asset to any individual (or to the Operating Manager or any of its affiliates with respect to such individual) who acts as an officer of, or in an active management role at, such Portfolio Asset (including industry executives, advisors, consultants (including operating consultants and sourcing consultants)), operating executives, subject matter experts or other persons acting in a similar capacity engaged or employed by PIMCO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) without limiting the foregoing items (i) and (ii), fees, costs or expenses paid to or in respect of PIMCO or any industry executives, advisors, consultants (including operating consultants and sourcing consultants), operating executives, subject matter experts or other persons acting in a similar capacity who provide services to the Company or its Portfolio Assets (including allocable overhead or other amounts or compensation of PIMCO, including all costs and expenses on account of compensation and benefits of its employees);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) payments, fees, costs, expenses and other liabilities, allocable overhead or other amounts or compensation (such as arranger, brokerage, placement, syndication, solicitation, underwriting, agency, origination, sourcing, group purchasing, structuring, collateral management, special purpose vehicle (including any special purpose vehicle of a Portfolio Asset), capital markets syndication and advisory fees (including underwriting and debt advisory fees) or subsidiary management or administration, operation, asset service, advisory, commitment, facility, float, insurance, reinsurance or other fees, discounts, retainers, spreads, commissions and concessions or other fees associated with the effectuation of any securities or financing transactions, but not merger and acquisition transaction advisory services fees related to the negotiation of the acquisition of a Portfolio Asset (including, for the avoidance of doubt, CLOs, CDOs, RMBSs (each as defined below), and other structures acquired by the Company) earned by or paid to (whether in cash or in kind) an Affiliated Service Provider, or another person with respect to services rendered by such Affiliated Service Provider or other person); provided that if such Affiliated Service Provider is engaged in the relevant activity or service on a for-profit basis, as determined by the Operating Manager in good faith, then, unless approved by the Board, the applicable fees paid to it for such services will be on terms as determined by the Operating Manager which the Operating Manager determines are not materially less favorable to the Company or the applicable Portfolio Asset than the fees that could be paid to a third party with commensurate skill, expertise or experience (to the extent applicable), in each case, as determined by the Operating Manager in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) amounts earned by or for the account of any PIMCO Client (directly or indirectly through an expense offset mechanism);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) fees, costs and expenses for any and all services whatsoever (including merger and acquisition transaction advisory services fees related to the negotiation of the acquisition of an instrument) paid or otherwise borne by any Portfolio Asset or issuer of any securities or other financial instruments that constitute debt opportunities or opportunities with respect to which the Operating Manager does not exercise control with respect to the decision to engage the services giving rise to such fees, costs and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) fees, costs and expenses or other amounts or compensation earned by any person or otherwise borne with respect to Portfolio Assets or transactions that are otherwise consented to or approved by a committee of the Board's independent directors; it being understood that in connection with obtaining such consent or approval, the Operating Manager will furnish or make available to the Board all material information, then actually known and available to the Operating Manager, that the Operating Manager determines in good faith is reasonably necessary for the Board to provide such consent or approval on a reasonably informed basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any fees, costs or expenses paid to any Affiliated Service Provider, including where such fees, costs or expenses are structured as a performance fee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) fees, costs and expenses or other amounts or compensation (including management fees, operating expenses and performance fees) earned by any person or otherwise borne with respect to Portfolio Assets managed by the Operating Manager or any of its affiliates that are acquired by the Company in the secondary market; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) any fees, costs or expenses determined by the Operating Manager in good faith to be similar in nature to any of the foregoing.

Fees paid to a Service Provider are determined in the Company's commercially reasonable discretion in compliance with the LLC Agreement, taking into account the relevant facts and circumstances and consistent with the responsibilities of the Company and the Operating Manager. Any fees, costs, expenses and liabilities incurred through

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the use or engagement of Service Providers are, and will continue to be, borne (directly or indirectly) by the Company (regardless of whether the services rendered by the Service Providers benefit all or only some of the Shareholders) and will not offset fees payable to the Operating Manager, even though such amounts may be substantial. Compensation arrangements with Service Providers may be structured in various ways, including project-based fees, time-based (e.g., hourly, weekly or monthly) fees, asset-based fees, flat fees, fees calculated on a basis-point or percentage basis, origination fees, servicing fees, management promote, incentive fees and/or a profits or equity interest in a Portfolio Asset. Service Providers will not be required to provide services "at cost" and therefore are expected to earn a profit from providing services to the Company.

Any profit earned by Affiliated Service Providers (and, if applicable, indirectly, the Operating Manager, Allianz SE, their affiliates and/or their respective employees, consultants and other personnel) for services provided in respect of the Company is not expected to be shared with the Company or the Shareholders and will not offset fees payable to the Operating Manager.

"Service Providers" include consultants, advisors, transaction finders or sourcers, operating partners, loan and other servicers, loan and other originators, collateral managers, program managers, property and other asset managers, leasing agents, asset monitors and administrators (including copyright administrators), developers, development managers, project managers, investment bankers, brokers, accountants, valuation agents, waterfall agents, calculation agents, paying agents, transfer agents and intermediaries, billing and collection agents, trustees, master servicers, software providers, tax preparers and consultants, analytic service providers, data management and reporting providers, technology professionals, technology providers, investor subscription platform providers, transfer service providers, pricing/modeling service providers, insurance providers, legal counsel, appraisers, industry or sector experts, joint venture partners and development partners, regulatory and compliance service providers, contract employees, outside legal counsel and/or temporary employees (as well as secondees of any of the foregoing), other persons providing similar types of services, whether working onsite at PIMCO offices or offsite as well as Affiliated Service Providers. In addition, Service Providers may provide various technology platform services in connection with the Company's ongoing operations, including in connection with the processing and completion of investor subscription materials, the administration and tracking of the Company's obligations (such as investment limitations and/or side letter undertakings) and associated compliance efforts (including with respect to ongoing monitoring and/or notice obligations), and compliance matters relating to obligations of the Operating Manager and/or its affiliates under applicable law. Service Providers will provide services in respect of the Company, the Related Acquisition Vehicles, their parallel vehicles and/or Portfolio Assets.

#### Organizational and Offering Expenses
The Company has incurred organizational and offering expenses (the "Organizational and Offering Expenses") in connection with the Company and Related Acquisition Vehicles, including legal, accounting, printing, distribution, mailing and filing fees and expenses, taxes, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design, website and electronic database expenses, fees and expenses payable to State Street Bank and Trust Company (which serves as the Company's custodian and transfer agent), or the then acting transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging and meals and other similar fees, costs and expenses of the Company and Related Acquisition Vehicles (excluding upfront selling commissions, Dealer Manager Fees, the combined annual distribution fees and shareholder servicing fees).

#### Operating Expenses
Each Class of Shares pays or otherwise bears its proportionate portion of the payments, fees, costs, expenses and other liabilities (for the avoidance of doubt, including any applicable value-added tax) or obligations resulting from, related to, associated with, arising from or incurred in connection with the applicable Series and Class of Shares and, more generally, the Company's and the Related Acquisition Vehicles' operations (collectively, "Operating Expenses"), as such items are more fully described in the Operating Agreement.

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#### Reimbursement of Company Expenses Paid by the Operating Manager
Each Class of Shares pays or otherwise bears its proportionate portion of the payments, fees, costs, expenses and other liabilities incurred in connection with the applicable Series and Class of Shares and, more generally, the Company's operations (including, without limitation, organizational, offering, distribution and operating expenses of the Company and Related Acquisition Vehicles (to the extent not paid by the applicable Related Acquisition Vehicles)).

The Operating Manager and its affiliates are entitled to reimbursement from the Company (or, if applicable, from a Series) for any Operating Expenses for Organizational and Offering Expenses paid or incurred by them on behalf of the Company.

The Company's expenses incurred in connection with the offering of Shares to investors, whether borne by the Operating Manager or the Company, are capitalized and amortized over a 12-month period. The Company's expenses in connection with the formation and organization of the Company are expensed as incurred.

#### Borrowings and Leverage
The Company may obtain one or more credit facilities in order to (i) make or leverage portfolio acquisitions, (ii) cover the Organizational and Offering Expenses and Operating Expenses (including Management Fees), (iii) to enable the Company, any special purchase vehicle, blocker entity, any alternative investment structure or any of their respective subsidiaries to issue or cause the issuance of letters of credit, or (iv) otherwise carry out the activities of the Company. There is no guarantee the Company will obtain any such credit facilities on favorable terms or at all. See "*Item 1A. Risk Factors*—*Risks Related to Owning and Managing a Platform of Underlying Asset-Backed Instruments* —*The Company may need to incur financial leverage to be able to achieve its business objectives. The Company cannot guarantee the availability of such financing.*" In addition, the Company may enter into an unsecured line of credit with PIMCO or one of its affiliates for such purposes. PIMCO or one of its affiliates may face conflicts of interest in connection with any borrowings or disputes under this unsecured line of credit.

The Company may borrow money from other PIMCO Clients or any affiliates or portfolio companies of PIMCO or any PIMCO Clients on an arm's-length basis or on terms not materially less favorable than what could be obtained from an unaffiliated third party. See "*Item 13. Certain Relationships and Related Transactions, and Director Independence—Potential Conflicts of Interest.*"

It is currently expected that the Company will not directly borrow funds (on a recourse basis to the Company) from any person to the extent that such borrowing would cause the aggregate amount of direct borrowings by the Company, on a recourse basis, to exceed two times the Company's NAV, as measured at or around the time such indebtedness is incurred; *provided* that any such calculation will exclude any Excluded Obligations (as defined below) as well as any financing provided or guaranteed by or eligible to be guaranteed by the Federal Deposit Insurance Corporation (the "FDIC"), the Federal Reserve Bank, any other government agency, Freddie Mac or Fannie Mae, and, for the avoidance of doubt, will also exclude any debt instruments issued by (or financing provided to the Company (including warehouse financing) with intent to securitize the underlying assets) a securitization vehicle in which the Company holds some or all of the other interests (whether residual, equity or otherwise). "Excluded Obligations" means (a) any financings provided to Platform Acquisitions and/or Structured Instruments and (b) guarantees of obligations of any subsidiary. The Company may incur additional leverage from time to time, including, without limitation, for investment purposes or during periods when the Company is experiencing unusual market volatility or other unexpected conditions.

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#### Hedging
The Company, the Related Acquisition Vehicles and/or subsidiaries thereof employ hedging in support of financing techniques or that is designed to reduce the risks of adverse movements in interest rates, securities prices, commodities prices and currency exchange rates, as well as other risks. While such transactions may reduce certain risks, such transactions themselves may entail certain other risks, including counterparty default, convergence and other related risks. Thus, while the Company and/or its subsidiaries may benefit from the use of these hedging mechanisms, unanticipated changes in interest rates, securities prices, commodities prices or currency exchange rates or other events related to hedging activities could result in a poorer overall performance for the Company and/or its subsidiaries than had they not entered into such hedging transactions.

Certain non-United States domiciled Feeder Entities entered, or intend to enter, into currency hedging arrangements in order to mitigate currency fluctuations from negatively affecting the value of such Feeder Entities' investment in the Company. In connection with such currency hedging arrangements, the Company is expected to provide guarantees, issue letters of credit and/or provide other credit support in support of such Feeder Entities' obligations under any such currency hedging arrangements of such Feeder Entities to the extent necessary. While gains and losses on the currency hedging transactions undertaken in connection with, and the expenses of, a Feeder Entity's currency hedging arrangements are expected to be allocated to the applicable Feeder Entity only, the Company as a whole may be liable for obligations in connection with currency hedging transactions undertaken by a specific Feeder Entity*.*

#### Distributions
Beginning February 2026, we started paying distributions to our Shareholders. We intend to pay regular monthly distributions to Shareholders of record. We intend to declare, accrue and pay distributions monthly. However, there can be no guarantee that we will pay monthly distributions consistently and at a specific rate, or at all. While we expect to declare and pay regular monthly distributions, and accordingly, we are subject to Delaware distribution rules with respect to limited liability companies, we do not intend to adopt a written distribution policy. The ultimate decision to declare distributions will be a case-by-case determination by the Board. If the Company decides to adopt a distribution policy, it will provide appropriate disclosure in advance. Due to tax considerations and other factors, the amount of the distributions ultimately received by each Shareholder may differ. The record date for distributions will be the last calendar day of the month immediately preceding the distribution. See "*Item 1A. Risk Factors—Risks Related to the Company and an Investment in the Shares—The amount of any distributions the Company may pay is uncertain. The Company may not be able to sustain the payment of distributions.*"

Cash distributions to Shareholders will be automatically reinvested under the Company's distribution reinvestment plan (the "DRIP") in additional whole and fractional Shares attributable to the type of Shares that a Shareholder owns unless and until an election is made on behalf of such participating Shareholder to withdraw from the DRIP and receive distributions in cash. The number of Shares to be received when distributions are reinvested will be determined by dividing the amount of the distribution, net of any applicable withholding taxes, by the applicable NAV per share as of the end of the prior month. Shares will be distributed in proportion to the type of Shares held by the Shareholder under the DRIP. There will be no upfront commissions charged on Shares issued to a Shareholder under the DRIP.

#### Share Repurchases
We expect that the Company will conduct a quarterly Share Repurchase (each, a "Share Repurchase") for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last calendar day of the calendar quarter prior to the commencement of the applicable Share Repurchase (the "Repurchase Plan"); *provided* that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law. The Company commenced its Share Repurchases beginning February 2026. In the event that the Company determines to repurchase some but not all of the Shares submitted for repurchase during any quarter, Shares submitted for repurchase during such quarter will be repurchased on a pro rata basis after the Company has repurchased all Shares for which repurchase has been requested due to death, disability, divorce, dissolution, bankruptcy, insolvency or adjudicated incompetence of the Shareholder and any minimum account repurchases made by the Company. All unsatisfied repurchase requests must be resubmitted in a later quarter.

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Under the Repurchase Plan, the Company may choose to, or choose not to, conduct repurchases for any particular quarter. To the extent the Company chooses to repurchase Shares in any particular quarter, the Company will only repurchase Shares during the repurchase window, which the Company expects (but does not guarantee and may change in its sole discretion) will open at least ten (10) business days before the publishing of the prior-quarter NAV during each quarter, and remain open until the later of (a) twenty (20) business days in total have elapsed since the opening of the repurchase window or (b) ten (10) business days have elapsed following the date on which NAV per Share as to each type of Share is made publicly available. To have Shares repurchased, a Shareholder's repurchase request and required documentation must be received by the Company's transfer agent in good order by 4:00 p.m. (Eastern time) no later than the last business day of the repurchase window (such last business day, the "Repurchase Date"). Repurchase requests received in good order by the Repurchase Date and processed by the Company's transfer agent will be effected at a repurchase price equal to the transaction price on the applicable Repurchase Date (which will generally be equal to the applicable NAV per Share as of the last calendar day of the prior quarter), except that Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares and/or Anchor III Shares that have not been outstanding for at least 24 months after the date Investor Shares are first issued (the "Launch Date") will be subject to the early repurchase fee (the "Early Repurchase Fee") described below.

The Company expects settlements of Share repurchases to be made within three (3) to five (5) business days of the Repurchase Date. A Shareholder may withdraw its, his or her repurchase request by notifying the transfer agent directly or through the Shareholder's financial intermediary. Repurchase requests must be cancelled (by notice to the Company) before 4:00 p.m. (Eastern time) on the applicable Repurchase Date. Certain broker-dealers require that their clients process repurchases through their broker-dealer, which may impact the time necessary to process such repurchase request, impose more restrictive deadlines than described under the Repurchase Plan, impact the timing of a Shareholder receiving repurchase proceeds and require different paperwork or process than described in the Repurchase Plan. Shareholders should contact their broker-dealer first if they want to request the repurchase of their Shares.

Due to differential fees (including accrued, but unpaid Performance Fees) and other factors, the NAV of each type of Shares will differ, but all NAV calculations are expected to be based on the joint underlying economic interests of the Company in the assets underlying its Portfolio Assets.

Since the commencement of operations, the Company received subscriptions of $26,835,125 from an affiliate of the Operating Manager (such investor, the "Seed Investor") and, in return, issued Anchor II Shares of Series II, to assist the Company with initial operational and acquisition activities. In connection with the Seed Investor's investment, the Company and the Seed Investor entered into a letter agreement pursuant to which in the event the Seed Investor's aggregate economic interests in the Company equal or exceed seventeen percent (17%) of the total outstanding economic interest of the Company (the "Ownership Limitation") on the last business day of the second month of any calendar quarter, the Company agreed that it shall, effective prior to the last business day of the applicable calendar quarter, repurchase Shares from the Seed Investor or its affiliates, without penalty, to the extent necessary such that their aggregate economic interests in the Company shall no longer equal or exceed the Ownership Limitation after giving effect to such Share repurchases. Such repurchases will not be subject to or counted towards the quarterly repurchase cap of 5.0% of the aggregate NAV (measured collectively across both Series) of the outstanding Shares.

#### Early Repurchase Fee
Until the 2<sup>nd</sup> anniversary of the Launch Date, the Anchor I Shares, the Anchor I-B Shares, the Anchor II Shares, the Anchor II-B Shares and the Anchor III Shares requested to be repurchased shall be subject to an Early Repurchase Fee of 5.0% of the NAV of such Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares and Anchor III Shares repurchased.

#### Mandatory Repurchases
Subject to the LLC Agreement, the Board may cause the Company or a Series to repurchase from time to time all or some of the Shares of a Shareholder without the consent or action by such Shareholder or any other person, on 5 days' prior written notice, if the Board determines that:

• any Shareholder does not meet any investor eligibility requirements established by the Company or the applicable Series from time to time;

• ownership of Shares by a Shareholder or other person is likely to cause the Company or a Series to be in violation of, or require registration of the Shares under, or subject the Company or a Series to additional registration or regulation under, the securities, commodities, or other laws of the United States or any other jurisdiction in the world, including without limitation the Investment Company Act of 1940, as amended (the "Investment Company Act");

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• continued ownership of the Shares by a Shareholder may be harmful or injurious to the business or reputation of the Company, a Series, the Operating Manager, or any of their affiliates, or may subject the Company, a Series or any Shareholder to an undue risk of adverse tax or other fiscal or regulatory consequences;

• any Shareholder fails to maintain a minimum balance of $500 of its Shares; or

• any other reasons provided in the LLC Agreement.

#### Employees
We have been carrying out, and expect to continue to carry out, our business plans pursuant to efforts of our officers and other personnel, which may be supplied by the Operating Manager, or may be directly hired by the Company or one or more of its subsidiaries, in addition to the services of the Operating Manager. To the extent that an officer or other personnel spend time on the Company or its subsidiaries, we expect such PIMCO personnel to devote sufficient time to managing the Company or its subsidiaries and/or overseeing, managing and supporting our Portfolio Assets, so that the Company can carry out its proposed activities. We currently have no employees and are managed by the Operating Manager pursuant to the Operating Agreement. Each of our officers is an employee of the Operating Manager or its affiliates. The Operating Manager's team includes senior PIMCO professionals who have significant experience in underwriting and structuring Portfolio Assets as well as managing other investments and private funds. Through the Company's relationship with the Operating Manager, the Company has access to PIMCO's platform for sourcing and evaluating Portfolio Assets.

#### Emerging Growth Company
We are and will remain an "emerging growth company" as defined in the JOBS Act until the earlier of (a) the last day of the fiscal year (i) following the fifth anniversary of the date of first sale of common equity securities pursuant to an effective registration statement under the Securities Act, (ii) in which we have total annual gross revenue of at least $1.235 billion or (iii) in which we are deemed to be a large accelerated filer, which means the market value of our Shares that is held by non-affiliates exceeds $700 million as of the date of our most recently completed second fiscal quarter, and (b) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. For so long as we remain an "emerging growth company" we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"). We cannot predict if investors will find our Shares less attractive because we may rely on some or all of these exemptions.

In addition, Section 107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We will take advantage of the extended transition period for complying with new or revised accounting standards, which may make it more difficult for Shareholders and securities analysts to evaluate us since our financial statements may not be comparable to companies that comply with public company effective dates and may result in less investor confidence.

#### Private Offering of Shares
We intend to continue conducting a continuous private offering of our Shares to (i) "accredited investors" (as defined in Regulation D under the Securities Act) and (ii) in the case of Shares sold outside the United States, to persons that are not "U.S. persons" (as defined in Regulation S under the Securities Act) in reliance on exemptions from the registration requirements of the Securities Act (the "Private Offering").

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Shares are offered on a monthly basis at NAV per Share (generally measured as of the end of the month immediately preceding the date of the allocation of Shares to subscribing Shareholders), plus any applicable upfront commissions and Dealer Manager Fees. The NAV per Share as of the date on which an investor makes a subscription request may be significantly different than the offering price such investor pays at the NAV per Share on the date of the allocation of Shares to such investor.

Shares are subject to different selling commissions, Dealer Manager Fees, servicing fees or distribution fees, as applicable, which will result in the dilution of Shares in proportion to the fees charged to different classes of Shares.

We may offer additional classes of Shares in the future.

In addition, we do not expect to make any public offering of any of our common equity, pursuant to the Securities Act or otherwise.

We expect investors to obtain Shares by subscription and obtain liquidity from the Company by having their Shares repurchased or redeemed by participating in the Repurchase Plan. In connection with each subscription or repurchase of Shares, a Shareholder will typically receive a number of Shares or cash, respectively, at a price that reflects the Company's most recently calculated NAV (which generally will be the Company's NAV as determined as of the last calendar day of the immediately preceding (i) calendar month for subscriptions and (ii) calendar quarter for repurchases).

The Company issues separate types of Shares for each of its two series: Series I and Series II. Each Series is a separate series under Delaware law and not a separate legal entity. Series I has elected to be treated as a corporation for U.S. tax purposes and Series II has elected to be treated as a partnership for U.S. tax purposes.

#### Feeder Entities
We have created, and may continue to create in the future, certain U.S. and non-U.S. partnerships or other entities that will serve as "feeder" entities (the "Feeder Entities") or parallel entities, as well as other entities or structures through which investors will indirectly invest in or obtain exposure to the Company or some portion or all of its assets (collectively with Feeder Entities, "Related Acquisition Vehicles").

#### Reporting Obligations
We make available on our websites our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after electronically filing such material, or furnishing it, to the SEC. The SEC also maintains a website (https://www.sec.gov) that contains such reports, proxy and information statements and other information. The Company's websites at https://pimco.com/palcoseriesi for Series I and https://pimco.com/palcoseriesii for Series II, contain additional information about our business, but the contents of the websites are not incorporated by reference in or otherwise a part of this Annual Report. From time to time, we may use our websites as a distribution channel for material company information. Financial and other important information regarding us is accessible through and posted on the Company's websites at https://pimco.com/palcoseriesi or https://pimco.com/palcoseriesii, as applicable.

#### Certain United States Federal Income Tax Considerations
The following is a general discussion of certain U.S. federal income tax considerations that may be relevant to Shareholders based upon the U.S. Internal Revenue Code of 1986, as amended (the "Code"), U.S. Treasury regulations promulgated thereunder and the court decisions and administrative rulings and guidance related thereto, any of which could be changed at any time, possibly with retroactive effect. This discussion is necessarily general and is not intended to be applicable to all categories of Shareholders, some of which, including, without limitation, dealers in securities or currencies, financial institutions or financial services entities, mutual funds, life insurance companies, persons that hold Shares as part of a straddle, hedge, constructive sale or conversion transaction with other investments, U.S. Shareholders whose functional currency is not the U.S. dollar, persons who have

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elected mark-to-market accounting, persons who hold Shares through a partnership or other entity treated as a pass-through entity for U.S. federal income tax purposes, persons who are liable for the alternative minimum tax, and certain U.S. expatriates or former long-term residents of the United States and other Shareholders that do not hold their Shares as capital assets, may be subject to special rules. Tax-exempt organizations (including tax-exempt accounts) and non-U.S. investors are addressed separately below.

The Company formed separate Series pursuant to the LLC Act, each of which is intended to be treated as a separate entity for U.S. federal income tax purposes. Series I has elected to be treated as a corporation for U.S. federal income tax purposes and Series II has elected to be treated as a partnership for U.S. federal income tax purposes.

If a partnership is a Shareholder, the tax treatment of a partner in such partnership will generally depend upon the status of the partner and the activities of the partnership.

For purposes of this discussion, a "U.S. Person" is (i) an individual who is a citizen or resident of the United States, (ii) a corporation, partnership or other entity created or organized in the United States or under the laws of the United States, any state thereof or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income taxation regardless of its source or (iv) a trust that (a) is subject to the supervision of a court within the United States and the control of a U.S. person as described in Section 7701(a)(30) of the Code or (b) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. Person. A "U.S. Series I Shareholder" is a Series I Shareholder that is a U.S. Person, and a "U.S. Series II Shareholder" is a Series II Shareholder that is a U.S. Person. A "Non-U.S. Series I Shareholder" is a Series I Shareholder that is not a U.S. Person and a "Non-U.S. Series II Shareholder" is a Series II Shareholder that is not a U.S. Person.

Unless otherwise expressly provided herein, this discussion does not address possible state, local or non-U.S. tax consequences of the purchase, ownership or disposition of Shares, some or all of which may be material to particular Shareholders. This discussion also does not address the potential application of the U.S. federal alternative minimum tax to the Shareholders.

#### Treatment of the Series as Separate Entities
We formed two separate Series pursuant to the LLC Act, and although the IRS has only issued proposed regulations relating to series entities, each Series is intended to be treated as a separate entity and have a different tax classification for U.S. federal income tax purposes. Under Delaware law, to the extent the records maintained for a Series account for the assets associated with such Series separately from the other assets of the Company or any other Series, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to such Series are segregated and enforceable only against the assets of such Series and not against the assets of the Company generally or any other Series. Series I and Series II are expected to acquire, directly or indirectly, the same portfolio of Portfolio Assets on a pro rata basis. Series I has elected to be treated as a corporation for U.S. federal income tax purposes and Series II has elected to be treated as a partnership for U.S. federal income tax purposes. The state tax treatment of a series limited liability company depends on the laws of each state, and it is possible that a particular state may treat Series I and Series II as a single entity for state tax purposes or may treat Series I or Series II as separate entities but classified differently than the IRS does for U.S. federal income tax purposes. The Series conduct the business of the Company jointly and although they have the ability and intention to contract in their own names, they do so jointly and in coordination with one another. Neither Series has directors, officers or employees, but each is overseen by the Board and managed by the Operating Manager.

We intend to conduct our operations so that we are not required to register as an investment company under the Investment Company Act. See "*Item 1A. Risk Factors—Risks Related to our Company and an Investment in our Shares—While we believe neither Series is or will be an investment company under the Investment Company Act, we cannot guarantee we will always be able to maintain our intended status under the Investment Company Act. We intend to conduct our operations so that neither Series I nor Series II would be defined as an investment company as that term is defined and used under the Investment Company Act.*"

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#### Series I:

#### Corporate Status of Series I
Series I has elected to be classified as a corporation for U.S. federal income tax purposes. As such, tax attributes are not expected to flow between Series I and the Series I Shareholders. Instead, all income of the corporation is expected to be subject to corporate income tax, which may result in the Series I Shareholders bearing a greater tax burden than Series II Shareholders. U.S. Series I Shareholders that are tax-exempt are not expected to be treated as incurring unrelated business taxable income ("UBTI") unless such U.S. Series I Shareholder's investment is financed with leverage, and Non-U.S. Series I Shareholders are not expected to be treated as incurring income effectively connected with a U.S. trade or business unless ownership of the Series I Shares is associated with such Non-U.S. Series I Shareholder's trade or business within the United States or unless Series I is a "United States real property holding corporation" as discussed below.

#### Distributions to Series I Shareholders
In the event that we make a distribution of cash or other property (other than certain pro rata distributions of our Shares) in respect of our Series I Shares, the distribution generally will be treated as a dividend for United States federal income tax purposes to the extent it is paid from our current or accumulated earnings and profits, as determined under United States federal income tax principles. Any portion of a distribution that exceeds our current and accumulated earnings and profits generally will be treated first as a tax-free return of capital, causing a reduction in the adjusted tax basis of a Series I Shareholder, and to the extent the amount of the distribution exceeds a Series I Shareholder's adjusted tax basis in our Shares, the excess will be treated as gain from the disposition of Series I Shares (the tax treatment of which is discussed below under "*Series I—Gain on Disposition of Series I Shares*"). Series I Shareholders that reinvest any distributions pursuant to the DRIP may have tax liabilities that exceed cash distributions made to such Series I Shareholders, in which case such excess tax liability arising from the ownership of Series I Shares would need to be satisfied from a Series I Shareholder's own funds.

Dividends paid to a Non-U.S. Series I Shareholder generally will be subject to withholding of United States federal income tax at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. However, dividends that are effectively connected with the conduct of a trade or business by the Non-U.S. Series I Shareholder within the United States (and, if required by an applicable income tax treaty, are attributable to a United States permanent establishment) are not subject to the withholding tax, provided certain certification and disclosure requirements are satisfied. Instead, such dividends are subject to United States federal income tax on a net income basis generally in the same manner as if the Non-U.S. Series I Shareholder were a United States person as defined under the Code. Any such effectively connected dividends received by a foreign corporation may be subject to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an applicable income tax treaty.

A Non-U.S. Series I Shareholder who wishes to claim the benefit of an applicable treaty rate and avoid backup withholding, as discussed below, for dividends is required (a) to provide the applicable withholding agent with a properly executed IRS Form W-8BEN or IRS Form W-8BEN-E (or other applicable form) certifying under penalty of perjury that such Series I Shareholder is not a United States person as defined under the Code and is eligible for treaty benefits or (b) if Series I Shares are held through certain foreign intermediaries, to satisfy the relevant certification requirements of applicable United States Treasury regulations. Special certification and other requirements apply to certain Non-U.S. Series I Shareholders that are pass-through entities rather than corporations or individuals.

A Non-U.S. Series I Shareholder eligible for a reduced rate of United States federal withholding tax pursuant to an income tax treaty may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.

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#### Gain on Disposition of Series I Shares
U.S. Series I Shareholders generally are subject to gain upon the sale or taxable disposition of Series I Shares in an amount equal to the excess of the amount realized over the Series I Shareholder's adjusted basis in the Series I Shares, which gain would generally be characterized as capital gain. If the Series I Shares sold were held by the selling Series I Shareholder for more than one year, the gain on the sale would be long-term capital gain. Subject to the discussion of backup withholding below, any gain realized by a Non-U.S. Series I Shareholder on the sale or other disposition of Series I Shares generally will not be subject to United States federal income tax unless:

• the gain is effectively connected with a trade or business of the Non-U.S. Series I Shareholder in the United States (and, if required by an applicable income tax treaty, is attributable to a United States permanent establishment of the Non-U.S. Series I Shareholder);

• the Non-U.S. Series I Shareholder is an individual who is present in the United States for 183 days or more in the taxable year of that disposition, and certain other conditions are met; or

• Series I is or has been a "United States real property holding corporation" for U.S. federal income tax purposes at any time during the previous five years while owned by the Non-U.S. Series I Shareholder and certain other conditions are met.

A Non-U.S. Series I Shareholder described in the first or third bullet points immediately above will be subject to tax on the gain derived from the sale or other disposition in the same manner as if the Non-U.S. Series I Shareholder were a United States person as defined under the Code. In addition, if any Non-U.S. Series I Shareholder described in the first bullet point immediately above is a foreign corporation, the gain realized by such Non-U.S. Series I Shareholder may be subject to an additional "branch profits tax" at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. An individual Non-U.S. Series I Shareholder described in the second bullet point immediately above will be subject to a 30% (or such lower rate as may be specified by an applicable income tax treaty) tax on the gain derived from the sale or other disposition, which gain may be offset by United States source capital losses even though the individual is not considered a resident of the United States.

Generally, a corporation is a "United States real property holding corporation" if the fair market value of its United States real property interests equals or exceeds 50% of the sum of the fair market value of its worldwide real property interests and its other assets used or held for use in a trade or business (all as determined for United States federal income tax purposes). We have not determined whether Series I is a "United States real property holding corporation" for United States federal income tax purposes. We do not presently expect Series I to be treated as a United States real property holding corporation, but depending on the composition and character of its assets it is possible that it is or may become a United States real property holding corporation.

#### Information Reporting and Backup Withholding
Distributions paid to Series I Shareholders will generally be reported to the IRS. Distributions paid to a Non-U.S. Series I Shareholder and the amount of any tax withheld with respect to such distributions generally will be reported to the IRS. Copies of the information returns reporting such distributions and any withholding may also be made available to the tax authorities in the country in which the Non-U.S. Series I Shareholder resides under the provisions of an applicable income tax treaty.

A Non-U.S. Series I Shareholder will not be subject to backup withholding on distributions received if such Series I Shareholder certifies under penalty of perjury that it is a Non-U.S. Series I Shareholder (and the payor does not have actual knowledge or reason to know that such Series I Shareholder is a United States person as defined under the Code), or such Series I Shareholder otherwise establishes an exemption.

Information reporting and, depending on the circumstances, backup withholding will apply to the proceeds of a sale or other disposition of Series I Shares within the United States or conducted through certain United States-related financial intermediaries unless the beneficial owner certifies under penalty of perjury that it is a Non-U.S. Series I Shareholder (and the payor does not have actual knowledge or reason to know that the beneficial owner is a United States person as defined under the Code), or such owner otherwise establishes an exemption.

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Backup withholding is not an additional tax and any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against a Non-U.S. Series I Shareholder's United States federal income tax liability provided the required information is timely furnished to the IRS.

#### Foreign Account Tax Compliance
Under Sections 1471 through 1474 of the Code (such Sections commonly referred to as "FATCA"), a 30% United States federal withholding tax is imposed on any dividends paid on our Series I Shares to (i) a "foreign financial institution" (as specifically defined in the Code and whether such foreign financial institution is the beneficial owner or an intermediary) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA, or (y) its compliance (or deemed compliance) with FATCA (which may alternatively be in the form of compliance with an intergovernmental agreement with the United States) in a manner which avoids withholding, or (ii) a "non-financial foreign entity" (as specifically defined in the Code and whether such non-financial foreign entity is the beneficial owner or an intermediary) which does not provide sufficient documentation, typically on IRS Form W-8BEN-E, evidencing either (x) an exemption from FATCA, or (y) adequate information regarding certain substantial United States beneficial owners of such entity (if any). If a dividend payment is both subject to withholding under FATCA and subject to the withholding tax discussed above under "*Series I—Distributions to Series I Shareholders*," an applicable withholding agent may credit the withholding under FATCA against, and therefore reduce, such other withholding tax. While withholding under FATCA would also have applied to payments of gross proceeds from the sale or other taxable disposition of our Series I Shares, proposed United States Treasury regulations (upon which taxpayers may rely until final regulations are issued) eliminate FATCA withholding on payments of gross proceeds entirely. Series I Shareholders should consult their own tax advisors regarding these requirements and whether they may be relevant to the Shareholders' ownership and disposition of Series I Shares.

#### Series II:

#### Partnership Status of Series II
Series II has elected and is expected to be treated as a partnership for U.S. federal income tax purposes. An entity that is treated as a partnership for U.S. federal income tax purposes, subject to the discussion below in "—*Information Returns and Audit Procedures*," generally incurs no U.S. federal income tax liability. Instead, each partner is generally required to take into account its allocable share of items of income, gain, loss, deduction or credit of the partnership in computing its U.S. federal income tax liability, regardless of whether cash distributions are made. Distributions of cash by a partnership to a partner generally are not taxable unless the amount of cash distributed to a partner is in excess of the partner's adjusted basis in its partnership interest.

An entity that would otherwise be classified as a partnership, such as Series II, for U.S. federal income tax purposes may nonetheless be taxable as a corporation if it is a "publicly traded partnership," unless an exception applies. An exception, referred to as the "Qualifying Income Exception," exists with respect to a publicly traded partnership if (i) at least 90% of such partnership's gross income for every taxable year consists of "qualifying income" and (ii) the partnership would not be required to register under the Investment Company Act if it were a U.S. corporation. Qualifying income includes certain interest income, dividends, real property rents, gains from the sale or other disposition of real property and any gain from the sale or disposition of a capital asset or other property held for the production of income that otherwise constitutes qualifying income.

We intend to manage the affairs of Series II so that Series II will meet the Qualifying Income Exception in each taxable year. However, the portion of Series II's income that is qualifying income may change from time to time, and there can be no assurance that at least 90% of its gross income in any year will constitute qualifying income. In the event that Series II does not meet the Qualifying Income Exception, there are other exceptions to the "publicly traded partnership" rules, including an exemption applicable to periodic redemptions, that may apply. Upon request, the Company counsel will provide an opinion, based on representations provided by Series II, that for U.S. federal income tax purposes (i) Series II will be treated as a partnership and not as an association taxable as a corporation and (ii) Series II will not be treated as a "publicly traded partnership" taxable as a corporation within the meaning of Section 7704 of the Code.

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No ruling has been or will be sought from the IRS, and the IRS has made no determination as to Series II's status for U.S. federal income tax purposes or whether Series II's operations meet the Qualifying Income Exception.

If Series II were to be recharacterized as a corporation for U.S. federal income tax purposes or were required to register under the Investment Company Act, it would be treated as if it had transferred all of its assets, subject to liabilities, to a newly formed corporation in return for stock in such corporation, and then distributed the stock to Series II Shareholders in liquidation. This deemed contribution and liquidation could result in the recognition of gain (but not loss) to U.S. Series II Shareholders. If, at the time of such deemed contribution, Series II were to have liabilities in excess of the tax basis of its assets, U.S. Series II Shareholders generally would recognize gain in respect of such excess liabilities upon the deemed transfer. Thereafter, Series II would be treated as a corporation for U.S. federal income tax purposes.

In addition, if Series II were treated as a corporation in any taxable year, its items of income, gain, loss, deduction or credit would be reflected only on Series II's tax return, rather than being passed through to Series II Shareholders, and Series II would be subject to U.S. corporate income tax in a similar manner to Series I.

Based on the foregoing consequences, the treatment of Series II as a corporation could materially reduce a Series II Shareholder's after-tax return and therefore could result in a substantial reduction of the value of our Series II Shares. The remainder of this summary assumes that Series II will be treated as a partnership for U.S. federal income tax purposes.

*Investment Structure* 

Series II structures certain acquisitions through entities classified as corporations for U.S. federal income tax purposes. Such acquisitions will be structured as determined in the sole discretion of the Operating Manager generally to ensure that Series II is classified as a partnership and not a publicly traded partnership taxable as a corporation (as discussed above under "—*Partnership Status of Series II*") and to provide simplified tax reporting for Series II Shareholders. Because Series II Shareholders are located in numerous taxing jurisdictions and subject to different tax rules, no assurance can be given that any such investment structure will benefit all Series II Shareholders to the same extent, including any structures or investments utilizing leverage. Any such investment structure may result in additional indirect tax liabilities for certain Series II Shareholders. As discussed below under "—*Passive Foreign Investment Companies*" and "—*Controlled Foreign Corporations,*" if any such entity were a non-U.S. corporation, it might be considered a PFIC or CFC (each as defined below). If any such entity were a U.S. corporation, it would be subject to U.S. federal net income tax on its income, including any gain recognized on the disposition of its investments. In addition, if an investment held through an entity classified as a corporation for U.S. federal income tax purposes were to involve U.S. real property, gain recognized on the disposition of the investment by a corporation generally would be subject to corporate-level tax, whether the corporation were a U.S. or a non-U.S. corporation.

#### Consequences to U.S. Series II Shareholders
*Ownership of Series II Shares* 

**Income and Loss.** U.S. Series II Shareholders are required to take into account, as described below, their allocable share of Series II's items of income, gain, loss, deduction and credit for each of Series II's taxable years ending with or within such Series II Shareholder's taxable year. Each item generally has the same character and source as though a Series II Shareholder had realized the item directly. Series II Shareholders must report such items without regard to whether any distribution has been or will be received from Series II. Series II intends to make cash distributions to all Series II Shareholders on a monthly basis. However, based upon each Series II Shareholder's particular tax situation and depending upon whether they reinvest such distributions pursuant to the DRIP, their tax liability might exceed cash distributions made to Series II Shareholders, in which case such excess tax liabilities arising from the ownership of Series II Shares would need to be satisfied from a Series II Shareholder's own funds.

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With respect to U.S. Series II Shareholders who are individuals, certain dividends paid by a corporation (including any "blocker" vehicle taxable as a corporation for U.S. federal income tax purposes and certain qualified foreign corporations) to Series II and that are allocable to such U.S. Series II Shareholders may qualify for reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible for the benefits of specified income tax treaties with the United States with respect to its shares that are readily tradable on an established securities market in the United States. Among other exceptions, U.S. Series II Shareholders who are individuals will not be eligible for reduced rates of taxation on any dividends if the payer is a "passive foreign investment company" (a "PFIC") for the taxable year in which such dividends are paid or for the preceding taxable year. Dividends received by non-corporate U.S. Series II Shareholders may be subject to an additional Medicare tax on unearned income of 3.8% (see "*—Medicare Tax*" below). U.S. Series II Shareholders that are corporations may be entitled to a "dividends received deduction" in respect of dividends paid by U.S. corporations in which Series II owns stock. Prospective Series II Shareholders should consult their own tax adviser regarding the application of the foregoing rules in light of their particular circumstances.

For U.S. federal income tax purposes, a Series II Shareholder's allocable share of Series II's items of income, gain, loss, deduction or credit is governed by the LLC Agreement if such allocations have "substantial economic effect" or are determined to be in accordance with such Series II Shareholder's interest in Series II. Series II believes that, for U.S. federal income tax purposes, such allocations should be given effect, and Series II intends to prepare and file tax returns based on such allocations. If the IRS were to successfully challenge the allocations made pursuant to the LLC Agreement, then the resulting allocations for U.S. federal income tax purposes might be less favorable than the allocations set forth therein.

**Basis.** In general, Series II Shareholders will have an initial tax basis in their Series II Shares equal to the sum of (i) the amount of cash paid for Shares and (ii) their share of Series II's liabilities, if any. That basis will be increased by such Series II Shareholder's share of Series II's income and by increases in their share of Series II's liabilities, if any. That basis will be decreased, but not below zero, by distributions received from Series II, by their share of Series II's losses and by any decrease in their share of Series II's liabilities. Under applicable U.S. federal income tax rules, a partner in a partnership has a single, or "unitary," tax basis in their partnership interest. As a result, any amount paid to acquire additional Series II Shares (including through the DRIP) will be averaged with the adjusted tax basis of Series II Shares owned by such Series II Shareholder prior to the acquisition of such additional Series II Shares.

**Limits on Deductions for Losses and Expenses.** A Series II Shareholder's deduction of their allocable share of Series II's losses will be limited to their tax basis in Series II Shares and, if such Series II Shareholder is an individual or a corporate holder that is subject to the "at risk" rules, to the amount for which such Series II Shareholder is considered to be "at risk" with respect to Series II's activities, if that is less than their tax basis. In general, a Series II Shareholder will be at risk to the extent of their tax basis in our Series II Shares, reduced by (i) the portion of that basis attributable to their share of Series II's liabilities for which they will not be personally liable (excluding certain qualified non-recourse financing) and (ii) any amount of money borrowed to acquire or hold Series II Shares, if the lender of those borrowed funds owns an interest in Series II, is related to the Series II Shareholder, or can look only to such Series II Shareholder's Series II Shares for repayment. A Series II Shareholder's at-risk amount generally will increase by their allocable share of Series II's income and gain and decrease by cash distributions received from Series II and their allocable share of losses and deductions. Series II Shareholders must recapture losses deducted in previous years to the extent that distributions cause their at-risk amount to be less than zero at the end of any taxable year. Losses disallowed or recaptured as a result of these limitations will carry forward and will be allowable to the extent that their tax basis or at risk amount, whichever is the limiting factor, subsequently increases. Upon the taxable disposition of Series II Shares, any gain recognized can be offset by losses that were previously suspended by the at-risk limitation, but may not be offset by losses suspended by the basis limitation. Any excess loss above the gain previously suspended by the at-risk or basis limitations may no longer be used. An additional limitation may apply to the deduction of certain "excess business losses" by non-corporate U.S. Series II Shareholders. Shareholders should consult their own tax adviser regarding the limitations on the deductibility of losses under the Code.

Individuals and certain estates and trusts are not permitted to claim miscellaneous itemized deductions. Such miscellaneous itemized deductions may include the operating expenses of Series II, including Series II's allocable share of the Management Fee.

**Limitations on Deductibility of Organizational and Offering Expenses and Syndication Fees.** In general, neither Series II nor any U.S. Series II Shareholder may deduct organizational or syndication expenses. Syndication fees (which would include any sales or placement fees or commissions) must be capitalized and cannot be amortized or otherwise deducted.

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**Limitations on Interest Deductions.** While it is not presently expected, if Series II were to incur debt, it is possible that such indebtedness could give rise to UBTI to the extent such indebtedness is used or deemed to be used to acquire investments. In addition, a Series II Shareholder's pro rata share of Series II's interest expense, if any, is likely to be treated as "investment interest" expense. For a non-corporate U.S. Series II Shareholder, the deductibility of "investment interest" expense generally is limited to the amount of such Series II Shareholder's "net investment income." Net investment income includes gross income from property held for investment and amounts treated as portfolio income under the passive loss rules, less deductible expenses, other than interest, directly connected with the production of investment income, but generally does not include gains attributable to the disposition of property held for investment. A Series II Shareholder's share of Series II's dividends and interest income will be treated as investment income, although "qualified dividend income" subject to reduced rates of tax in the hands of an individual will only be treated as investment income if such individual elects to treat such dividends as ordinary income not subject to reduced rates of tax. In addition, state and local tax laws may disallow deductions for their share of Series II's interest expense. Under Section 163(j) of the Code, additional limitations may apply to a corporate U.S. Series II Shareholder's share of Series II's interest expense, if any.

*Treatment of Distributions to Series II Shareholders* 

Distributions of cash by Series II generally will not be taxable to Series II Shareholders to the extent of their adjusted tax basis (described above) in their Series II Shares. Any cash distributions in excess of a Series II Shareholder's adjusted tax basis generally will be considered to be gain from the sale or exchange of Series II Shares (described below). Such gain generally will be treated as capital gain and will be long-term capital gain if the holding period for such Series II Shares exceeds one year. A reduction in a Series II Shareholder's allocable share of liabilities, and certain distributions of marketable securities by Series II, if any, will be treated similar to cash distributions for U.S. federal income tax purposes. Series II Shareholders that elect to participate in the DRIP may have tax liabilities that exceed cash distributions made to Series II Shareholders, in which case any tax liabilities arising from the ownership of Series II Shares would need to be satisfied from a Series II Shareholder's own funds.

*Sale or Exchange/Redemption of Series II Shares* 

Series II Shareholders will recognize gain or loss on the redemption, sale or taxable exchange of Series II Shares equal to the difference, if any, between the amount realized and their tax basis in the Series II Shares sold or exchanged. The amount realized will be measured by the sum of the cash or the fair market value of other property received plus the Series II Shareholder's share of Series II's liabilities, if any.

Gain or loss recognized upon the sale or exchange of Series II Shares generally will be taxable as capital gain or loss and will be long-term capital gain or loss if the Series II Shares were held for more than one year as of the date of such sale or exchange. Assuming Series II or, following the finalization of proposed U.S. Treasury regulations discussed below in "—*Passive Foreign Investment Companies*," a Series II Shareholder has not elected to treat its share of Series II's purchase of any PFIC as a "qualified electing fund," gain attributable to such purchase of a PFIC would be taxable in the manner described below in "—*Passive Foreign Investment Companies*." In addition, certain gain attributable to our purchase of a "controlled foreign corporation" ("CFC") may be characterized as ordinary income, and certain gain attributable to "unrealized receivables" or "inventory items" could be characterized as ordinary income rather than capital gain. For example, if Series II were to hold debt acquired at a market discount, accrued market discount on such debt would be treated as "unrealized receivables." The deductibility of capital losses is subject to limitations.

Each U.S. Series II Shareholder who acquires Series II Shares at different times (including through the DRIP) and intends to sell all or a portion of the Series II Shares within a year of the most recent purchase should consult its own tax adviser regarding the application of certain "split holding period" rules to such sale and the treatment of any gain or loss as long-term or short-term capital gain or loss.

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*Medicare Tax* 

U.S. Series II Shareholders that are individuals, estates or trusts may be required to pay a 3.8% Medicare tax on the lesser of (i) the excess of such U.S. Series II Shareholders' "modified adjusted gross income" (or "adjusted gross income" in the case of estates and trusts) over certain thresholds and (ii) such U.S. Series II Shareholders' "net investment income" (or "undistributed net investment income" in the case of estates and trusts). Net investment income generally includes a Shareholder's allocable share of Series II's income, as well as gain realized from a sale of Series II Shares. Special rules relating to the 3.8% Medicare tax may apply to dividends and gain, if any, derived by such U.S. Series II Shareholders with respect to Series II's interest in a PFIC or CFC. See *"—Passive Foreign Investment Companies"* and *"—Controlled Foreign Corporations"* below. Prospective Series II Shareholders should consult their own tax adviser regarding the implications of the 3.8% Medicare tax for their ownership and disposition of Series II Shares.

*Foreign Tax Credit Limitations* 

A U.S. Series II Shareholder may be entitled to a foreign tax credit with respect to their allocable share of creditable foreign taxes paid on Series II's income and gains. Complex rules may, depending on such Series II Shareholder's particular circumstances, limit the availability or use of foreign tax credits. In particular, a U.S. Series II Shareholder generally is not entitled to an indirect foreign tax credit with respect to non-U.S. taxes paid by an entity in which Series II invests that is treated as a foreign corporation for U.S. federal income tax purposes. Gain from the sale of Series II's investments may be treated as U.S.-source gain. Consequently, Series II Shareholders may not be able to use the foreign tax credit arising from any foreign taxes imposed on such gain unless the credit can be applied (subject to applicable limitations) against U.S. tax due on other income treated as derived from foreign sources. Certain losses that Series II incurs may be treated as foreign-source losses, which could reduce the amount of foreign tax credits otherwise available.

*Deduction for Qualified Business Income* 

U.S. taxpayers who have domestic "qualified business income" from a partnership generally are entitled to deduct the lesser of such qualified business income or 20% of taxable income. A U.S. Series II Shareholder's allocable share of Series II's income is not expected to be treated as qualified business income or as qualified publicly traded partnership income. While no assurances can be provided, a portion of U.S. Series II Shareholder's allocable share of Series II's income may include "qualified REIT dividends."

*Foreign Currency Gain or Loss* 

Because investments may be made and realized in currencies other than U.S. dollars or debt securities denominated in currencies other than U.S. dollars, U.S. Series II Shareholders may recognize a foreign currency gain or loss (ordinary, not capital) when payment is received with respect to such debt securities or when such Shareholder or Series II disposes of foreign currency or such debt securities.

*Passive Foreign Investment Companies* 

U.S. Series II Shareholders may be subject to special rules applicable to indirect investments in foreign corporations, including an investment through Series II in a PFIC. A PFIC is defined as any foreign corporation with respect to which (after applying certain look-through rules) either (i) 75% or more of its gross income for a taxable year is "passive income" or (ii) 50% or more of its assets in any taxable year produce or are held for the production of "passive income." There are no minimum stock ownership requirements for PFICs. Based on our organizational structure, we believe that Series II is likely to own an interest in a PFIC. If Series II Shareholders in Series II indirectly hold an interest in a foreign corporation for any taxable year during which the corporation is classified as a PFIC with respect to such Series II Shareholder, then the corporation will continue to be classified as a PFIC with respect to such Series II Shareholder for any subsequent taxable year during which such Series II Shareholder continue to hold an interest in the corporation, even if the corporation's income or assets would not cause it to be a PFIC in such subsequent taxable year, unless an exception applies.

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Subject to certain elections described below, any gain on the disposition of stock of a PFIC owned by a Shareholder indirectly through Series II, as well as income realized on certain "excess distributions" by such PFIC, would be treated as though realized ratably over the shorter of a Series II Shareholder's holding period of Series II Shares or Series II's holding period for the PFIC. Such gain or income generally would be taxable as ordinary income, and dividends paid by the PFIC would not be eligible for the preferential tax rates for dividends paid to non-corporate U.S. Series II Shareholders. In addition, an interest charge would apply, based on the tax deemed deferred from prior years. To the extent reasonably practicable and administratively feasible, we may structure investments in foreign corporations to avoid holding a PFIC. However, no assurances can be given that we will be able to structure investments to avoid holding any investment through an entity treated as a PFIC.

If Series II or Series II Shareholders were to elect to treat their share of Series II's interest in a PFIC as a "qualified electing fund" ("QEF Election") for the first year they were treated as holding such interest, then in lieu of the tax consequences described in the paragraph immediately above, Series II Shareholders would be required to include in income each year a portion of the ordinary earnings and net capital gains of the PFIC, even if not distributed to Series II or to such Series II Shareholder. Series II expects that certain acquisitions will be PFICs and generally intends that Series II will make a QEF Election with respect to such acquisitions, to the extent applicable. Recently proposed U.S. Treasury regulations would require that U.S. Series II Shareholders, rather than Series II, make the QEF Election. These proposed regulations would generally apply prospectively to taxable years beginning on or after the date the proposed regulations are finalized, and any pre-existing QEF Election made by Series II prior to that date would continue for any U.S. Series II Shareholder that owns an interest in a PFIC through Series II on the date the proposed regulations are finalized. A QEF Election must be made by Series II Shareholders on an entity-by-entity basis. To make a QEF Election, Series II Shareholders must, among other things, (i) obtain a PFIC annual information statement and (ii) prepare and submit IRS Form 8621 with the Shareholders' annual income tax return. To the extent reasonably practicable, we intend to timely provide Shareholders with information related to the PFIC status of each entity we are able to identify as a PFIC, including information necessary to make a QEF Election with respect to such entity. Any such election should be made for the first year Series II holds an interest in such entity or for the first year in which the Shareholder holds Series II Shares, if later.

Once Series II Shareholders have made a QEF Election for an entity, such election applies to any additional shares of interest in such entity acquired directly or indirectly, including through additional Series II Shares acquired after the QEF Election is made (such as Series II Shares acquired under the DRIP). If Series II Shareholders were to make a QEF Election after the first year that Shareholders were treated as holding an interest in a PFIC, the adverse tax consequences relating to PFIC stock would continue to apply with respect to the pre-QEF Election period, unless such Series II Shareholders were to make a "purging election." The purging election would create a deemed sale of such previously held share of Series II's interests in a PFIC. The gain recognized by the purging election would be subject to the special tax and interest charge rules, which treat the gain as an excess distribution, as described above. As a result of the purging election, Series II Shareholders would have a new basis and holding period in their share of Series II's interests in the PFIC. U.S. Series II Shareholders should consult their own tax advisers as to the manner in which such direct inclusions could affect their allocable share of Series II's income and their tax basis in the Series II Shares and the advisability of making a QEF Election or a purging election.

Treasury regulations under Section 1411 of the Code contain special rules for applying the 3.8% Medicare tax (as described above under "—*Medicare Tax*") to U.S. persons owning an interest in a PFIC. Under the special rules, a non-corporate U.S. Series II Shareholder that is subject to a QEF Election with respect to Series II's interest in a PFIC is permitted to make a special election to treat their share of the ordinary earnings and net capital gains of the PFIC as net investment income for purposes of the 3.8% Medicare tax (the "NIIT Election"). Series II generally intends to make a QEF Election on behalf of all Series II Shareholders, to the extent applicable.

In the case of a PFIC that is a publicly traded foreign company, and in lieu of making a QEF Election, an election may be made to "mark to market" the stock of such publicly traded foreign company on an annual basis. Pursuant to such an election, Series II Shareholders would include in each year as ordinary income the excess, if any, of the fair market value of such stock over its adjusted basis at the end of the taxable year. We do not expect that any

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of our existing or future investments will qualify as PFICs that are publicly traded, and therefore we do not expect that a mark-to-market election will be available for any such entity. Prospective Series II Shareholders should consult their own tax adviser regarding the availability of the mark-to-market election with respect to any PFIC in which they are treated as owning an interest through Series II.

Subject to certain exceptions, a U.S. person who directly or indirectly owns an interest in a PFIC generally is required to file an annual report with the IRS, and the failure to file such report could result in the imposition of penalties on such U.S. person and in the extension of the statute of limitations with respect to federal income tax returns filed by such U.S. person. The application of the PFIC rules to U.S. Series II Shareholders is uncertain in certain respects. Prospective Series II Shareholders should consult their own tax adviser regarding the application of the PFIC rules, including the foregoing filing requirements and the impact of a QEF Election, a NIIT Election under the Treasury Regulations under Section 1411 of the Code, or a mark-to-market election, as applicable, with respect to any PFIC in which they are treated as owning an interest through Series II.

*Controlled Foreign Corporations* 

A non-U.S. entity will be treated as a CFC if it is treated as a corporation for U.S. federal income tax purposes and more than 50% of (i) the total combined voting power of all classes of stock of the non-U.S. entity entitled to vote or (ii) the total value of the stock of the non-U.S. entity is owned by U.S. Shareholders on any day during the taxable year of such non-U.S. entity. For this purpose, a "U.S. CFC Shareholder" with respect to a non-U.S. entity means a U.S. person (including a U.S. partnership) that owns (directly, indirectly or constructively) 10% or more of the total combined voting power of all classes of stock of the non-U.S. entity entitled to vote or 10% or more of the total value of shares of all classes of stock of the non-U.S. entity.

Because Series II is a U.S. partnership for U.S. federal income tax purposes and is expected to own an interest in a CFC, then a U.S. Series II Shareholder who meets the ownership tests described above may be required to include in income its allocable share of the CFC's "Subpart F" income. Subpart F income generally includes dividends, interest, net gain from the sale or disposition of securities, non-actively managed rents and certain other generally passive types of income. The aggregate Subpart F income inclusions in any taxable year relating to a particular CFC are limited to such CFC's current earnings and profits. Such inclusions will be treated as ordinary income (whether or not attributable to net capital gains). Thus, a U.S. Series II Shareholder may be required to report as ordinary income its allocable share of the CFC's Subpart F income without corresponding receipts of cash and may not benefit from capital gain treatment with respect to the portion of any earnings attributable to net capital gains of the CFC. Under Treasury regulations, only U.S. Series II Shareholders that are U.S. CFC Shareholders would be required to include in income their allocable shares of a CFC's Subpart F income. In addition, such U.S. Series II Shareholders that are U.S. CFC Shareholders would be subject to current U.S. federal income tax on the "net CFC tested income" of the CFC, regardless of cash distributions from the CFC.

A Series II Shareholder's tax basis in their Series II Shares will be increased to reflect any required Subpart F income or net CFC tested income. Such income will be treated as income from sources within the United States, for certain foreign tax credit purposes, to the extent derived by the CFC from U.S. sources. Subpart F income will not be eligible for the reduced rate of tax applicable to certain dividends paid by qualified foreign corporations to individual U.S. persons. See above under "*Series II—Consequences to U.S. Series II Shareholders—Ownership of Series II Shares—Income and Loss*." Amounts included as Subpart F income or net CFC tested income with respect to direct and indirect investments generally will not be taxable again when actually distributed by the CFC.

Whether or not any CFC has Subpart F income, any gain allocated to Series II Shareholders from our disposition of an equity interest in a CFC will be treated as dividend income (regardless of U.S. CFC Shareholder status) to the extent of their allocable share of the current and/or accumulated earnings and profits of the CFC. In this regard, earnings would not include any amounts previously taxed pursuant to the CFC rules. However, net losses (if any) of a CFC will not pass through to U.S. Series II Shareholders.

As described above under "*—Passive Foreign Investment Companies*," Treasury regulations under Section 1411 of the Code contain special rules for applying the 3.8% Medicare tax to U.S. persons owning an interest in a PFIC. Similar rules apply to U.S. CFC Shareholders of a CFC. Prospective Series II Shareholders should consult their own tax adviser regarding the implications of these special rules.

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If a non-U.S. entity held by Series II is classified as both a CFC and a PFIC, then Series II Shareholders will be required to include amounts in income with respect to such non-U.S. entity either under the CFC rules described under this subheading, or under the PFIC rules described under "*—Passive Foreign Investment Companies*," but not both. The interaction of these rules is complex, and prospective Series II Shareholders should consult their own tax adviser in this regard.

Based on our organizational structure, we believe that one or more of Series II's investments in the future are likely to be classified as CFCs. We may in the future acquire certain assets or operating entities through one or more holding entities treated as corporations for U.S. federal income tax purposes, and such future holding entities or other companies may be treated as CFCs. A U.S. Series II Shareholder that is a U.S. CFC Shareholder based on the ownership tests described above may be required to include in income its allocable share of any CFC's "Subpart F" income. The application of the CFC rules to U.S. Series II Shareholders is uncertain in certain respects. Prospective Series II Shareholders should consult their own tax adviser regarding the implications of the CFC rules for their ownership and disposition of Series II Shares.

*REIT Subsidiaries* 

The following discussion summarizes certain U.S. federal income tax rules applicable REITs and certain U.S. federal income tax consequences to Shareholders with respect to investments held through one or more REIT Subsidiaries. Because of the complexity of the rules that apply to REITs, the discussion does not attempt to summarize all of the REIT rules that could potentially apply to REIT Subsidiaries, the Company, the Series and the Shareholders. Except as otherwise noted, the following discussion assumes that each REIT Subsidiary qualifies as a REIT for U.S. federal income tax purposes.

The REIT provisions of the Code apply to a domestic corporation, trust, or association (i) that is managed by one or more trustees or directors, (ii) the beneficial ownership of which is evidenced by transferable shares or by transferable certificates of beneficial interest, (iii) that properly elects to be taxed as a REIT, (iv) that is neither a financial institution nor an insurance company, (v) that uses a calendar year for U.S. federal income tax purposes, and (vi) that meets the additional requirements discussed below. Commencing with a REIT Subsidiary's second taxable year, (i) the beneficial ownership of its stock must be held by 100 or more persons during at least 335 days of a 12-month taxable year (or during a proportionate part of a taxable year of less than 12 months) and (ii) at any time during the last half of each taxable year, no more than 50% in value of its stock may be owned, directly or indirectly, by or for five or fewer individuals, private foundations, trusts providing for the payment of supplemental unemployment compensation benefits, and/or portions of trusts permanently set aside or to be used exclusively for charitable purposes (the "5/50 Test"). A "qualified trust" described in Section 401(a) of the Code and exempt from tax under Section 501(a) of the Code generally is not treated as an individual but, rather, shares held by it are treated as owned proportionately by its beneficiaries. For purposes of the 5/50 Test, stock ownership is determined by applying certain constructive ownership rules that treat the Shareholders as owning their proportionate shares of the applicable Series investment in any REIT. It generally is expected that the overall ownership will be sufficiently diverse (and each REIT Subsidiary will be organized in a manner that is expected) to satisfy the 5/50 Test, and that the LLC Agreement of the Company and organizational documents of each REIT Subsidiary will include restrictions on transfers intended to preserve compliance with the 5/50 Test; however, no assurances can be provided. The Company may cause each REIT Subsidiary to issue a relatively small amount of equity directly to at least 100 persons to satisfy the 100 shareholder requirement for each REIT Subsidiary.

In order to maintain qualification as a REIT, a REIT must annually satisfy two gross income requirements. First, at least 75% of a REIT's gross income for each taxable year generally must be derived, directly or indirectly, from investments of a passive investment character relating to real property or mortgages on real property or from certain types of temporary investments. Qualifying income, excluding gross income from certain dealer sales referred to as "prohibited transactions" (discussed below) and certain hedging and foreign currency transactions, for purposes of this 75% gross income test generally includes: (i) rents from real property, (ii) interest on debt secured by mortgages on real property or on interests in real property, (iii) dividends or other distributions on, and gain from the sale of, shares in other REITs, (iv) gain from the sale of real estate assets, (v) income and gain derived from foreclosure property, and (vi) income from certain types of temporary investments. Second, at least 95% of a REIT's gross income for each taxable year generally must be derived from the real property investments described above, from other types of dividends and interest, and from gain from the sale or disposition of stock or securities that are not dealer property.

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While rents from real property qualify for purposes of the foregoing gross income tests, rents from real property do not include "related party rents." Related party rents are rents received from any tenant if the REIT owns, directly or indirectly, in the case of a corporate tenant, 10% or more of such tenant's stock (by vote or value) or, in the case of a non-corporate tenant, an interest of 10% or more in the assets or net profits of such tenant. Certain constructive attribution rules apply for purposes of measuring such ownership, including attribution rules which could potentially treat the Company and/or a REIT Subsidiary as owning an interest in a tenant actually owned by a Shareholder (and not actually owned by the Company or such REIT Subsidiary). The LLC Agreement of the Company and the organizational documents of each REIT Subsidiary require Shareholders to provide certain information relating to their actual and constructive ownership of certain tenants to the Operating Manager upon request and include restrictions on transfers, in each case intended to avoid the recognition of related party rents. While the Operating Manager intends to use reasonable efforts to monitor the composition of the Company and each REIT Subsidiary's tenants in order to avoid the recognition of related party rents and exclusion of any otherwise qualifying rents from real property, no assurances can be provided that a REIT Subsidiary will not recognize related party rents.

At the close of each quarter of its taxable year, a REIT also must satisfy five tests relating to the nature of its assets. First, real estate assets, cash and cash items, and government securities must represent at least 75% of the value of a REIT's total assets. Second, securities (other than investments included in the 75% asset class) cannot represent more than 25% of the value of a REIT's total assets. Third, of the investments that are not included in the 75% asset class and that are not securities of such REIT's taxable REIT subsidiaries, (i) the value of any one issuer's securities owned by a REIT may not exceed 5% of the value of its total assets and (ii) such REIT may not own more than 10% by vote or (with certain exceptions) by value of any one issuer's outstanding securities. Fourth, securities of taxable REIT subsidiaries cannot represent more than 25% of the value of a REIT's total assets. Fifth, nonqualified publicly offered REIT debt instruments cannot represent more than 25% of the value of a REIT's total assets.

Use of a REIT generally eliminates (or substantially minimizes) corporate-level U.S. federal income tax by permitting the REIT to deduct dividends paid to shareholders in calculating its taxable income. Moreover, in order to qualify as a REIT, a REIT generally must distribute dividends (other than capital gain dividends) to its shareholders in an annual amount at least equal to 90% of its "REIT taxable income" (determined without regard to the dividends paid deduction and by excluding any net capital gain). For these purposes, dividend distributions include actual distributions and cashless "consent dividends." The Company intends to cause any REIT Subsidiary within its control to make actual distributions or consent dividends as necessary to eliminate (or substantially minimize) material U.S. federal income tax and to comply with the REIT requirements. In order for a distribution by a REIT Subsidiary to be deductible against taxable income and to be counted toward satisfaction of the REIT minimum distribution requirements, the distribution generally may not constitute a "preferential dividend." A dividend is not preferential if it is pro rata among all outstanding shares of stock within a class and is in accordance with the preferences among different classes of stock as set forth in the organizational documents of the REIT. In certain situations, the IRS has taken the view that charging different management fee rates to different investors results in preferential dividends. Existing IRS precedents do not consider the application of this preferential dividend rule to a REIT that is a subsidiary of a partnership that charges different management fees and/or incentive distributions to investors in the partnership. A REIT Subsidiary that is deemed to have paid preferential dividends could have additional undistributed taxable income that is subject to corporate level tax, and it might be subject to certain penalties and excise taxes or, depending on the circumstances, such REIT Subsidiary could fail to qualify as a REIT. Under certain circumstances, a REIT Subsidiary may be able to rectify a failure to meet the distribution requirement for a year by paying "deficiency dividends" to shareholders in a later year, subject to an interest charge.

Net losses incurred by a REIT Subsidiary in any taxable year may not reduce the amounts of distributions in subsequent years that are treated as dividends (including capital gain dividends). As a result, Series II Shareholders may be taxable in respect of distributions from a REIT that exceed such Series II Shareholders economic gain. In such event, upon liquidation of the applicable REIT Subsidiary, Series II Shareholders may realize a capital loss, the use of which is subject to limitations.

A REIT Subsidiary's qualification as a REIT for U.S. federal income tax purposes depends on whether it continues to meet the various requirements summarized above. Because of the complexity of such tests and the potential difficulties of complying with such tests, no assurance can be given that the actual results of a REIT Subsidiary's operations would satisfy such requirements. In addition, because the relevant laws may change, compliance with one or more of the REIT requirements may become impossible or impracticable for the Company or

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any REIT Subsidiary. If a REIT Subsidiary fails to qualify for taxation as a REIT in any taxable year, it may be able to preserve its REIT status under certain savings provisions through the payment of certain penalty taxes (which may be substantial). If no relief provisions apply, a REIT Subsidiary generally would be subject to tax on its taxable income at regular corporate rates, would otherwise be treated as a regular taxable corporation and may be ineligible to elect REIT status again prior to the fifth taxable year following the first year in which it failed to qualify as a under the Code.

To the extent that a REIT Subsidiary does not distribute all of its net capital gain and REIT taxable income, it generally will be subject to tax on the undistributed amount at corporate tax rates and an additional 4% excise tax on certain undistributed amounts. Notwithstanding the foregoing, even if a REIT Subsidiary qualified for taxation as a REIT, it nonetheless could be subject to U.S. federal income tax in certain circumstances, including (without limitation) the following: (i) a REIT Subsidiary could be subject to tax at the highest corporate rate on certain income from "foreclosure property" acquired by reason of default on a lease or indebtedness held by such REIT Subsidiary; (ii) a REIT Subsidiary would be subject to a 100% U.S. federal income tax rate on net income from "prohibited transactions" (generally, certain sales or other dispositions of property (other than foreclosure property) held primarily for sale to customers in the ordinary course of business); and (iii) a REIT Subsidiary would be subject to a 100% tax on certain redetermined rents, redetermined deductions, redetermined service income and excess interest payments involving or attributable to a taxable REIT subsidiary of such REIT Subsidiary (generally arising if such REIT Subsidiary and a taxable REIT subsidiary enter into transactions with each other that are not arm's length). As noted above, gains derived by a REIT from sales of property (other than foreclosure property) held primarily for sale to customers in the ordinary course of business are subject to the 100% tax on net income from such prohibited transactions. Under existing law, whether property is held as inventory or primarily for sale to customers in the ordinary course of a trade or business is a question of fact that depends on all the facts and circumstances surrounding the particular transaction. The Code provides a safe harbor pursuant to which sales of properties held for at least two years and meeting certain additional requirements will not be treated as prohibited transactions, but compliance with the safe harbor may not be practical. Given the absence of bright-line tests for determining when property is treated as held for sale and the potential difficulties in qualifying for the statutory safe harbor, the IRS may successfully contend that some or all of the sales made by any REIT Subsidiary are prohibited transactions and that gains from such sales are subject to the 100% tax.

*Taxation of REIT Shareholders* 

Series II Shareholders will be allocated a portion of the income with respect to its indirect ownership of any REIT Subsidiary and will generally be taxed with respect to this allocated income in the same manner as if such Series II Shareholder held the REIT shares directly. For purposes of this discussion, Series I will generally be treated in the same manner as a Series II Shareholder with respect to a REIT Subsidiary.

Distributions made by a REIT to its taxable shareholders out of current or accumulated earnings and profits (and not designated as capital gain dividends) are generally taken into account by them as ordinary income and will not be eligible for the dividends-received deduction for corporations or the reduced capital gains rates that generally apply to distributions by non-REIT C corporations to certain non-corporate Series II Shareholders. Individual taxpayers may be allowed a 20% deduction for "qualified REIT dividends" (i.e., REIT ordinary dividends other than capital gain dividends and portions of REIT dividends designated as qualified dividend income eligible for capital gain tax rates). The overall deduction is limited to 20% of the sum of the taxpayer's taxable income (less net capital gain) and certain cooperative dividends, subject to further limitations based on taxable income. Distributions that a REIT designates as capital gain dividends will be taxed as long-term capital gains (to the extent they do not exceed the REIT's actual net capital gain for the taxable year) without regard to the period for which the shareholder has held its shares. However, corporate Series II Shareholders may be required to treat up to 20% of certain capital gain dividends as ordinary income. Distributions in excess of current and accumulated earnings and profits are generally not taxable to a shareholder to the extent that they do not exceed the shareholder's adjusted basis in its shares, but rather will reduce such adjusted basis. To the extent that such distributions exceed the adjusted basis of a shareholder's shares they will be included in income as long-term capital gain (or short-term capital gain if the shares have been held for one year or less), assuming the shares are a capital asset in the hands of the shareholder.

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A REIT is treated as making a distribution that can count toward meeting its annual distribution requirement if it declares a "consent dividend." A consent dividend is a hypothetical distribution (as distinguished from an actual distribution) that is treated for U.S. federal income tax purposes as if it were distributed in money by the REIT to its shareholders on the last day of the REIT's taxable year, received by its shareholders on that day, and immediately contributed by the shareholders as paid-in capital to the REIT on that day. Each Series II Shareholder's distributive share of the amount of any consent dividend will be treated as a dividend to such person in accordance with the rules governing dividends discussed above. The Company currently intends for each REIT Subsidiary to make actual distributions, rather than consent dividends, to meet its REIT distribution requirements, but shareholders of the REIT may be required to accept consent dividends. Shareholders may not include in their income tax returns any net operating losses or capital losses of a REIT.

Assuming the shares were a capital asset in the hands of the shareholder, a shareholder's gain on the sale of its shares in a REIT will be taxed at long-term or short-term capital gain rates, depending on how long the shares were held. However, in general, any loss upon a sale or exchange of shares by a shareholder that has held such shares for six months or less (after applying certain holding period rules), will be treated as a long-term capital loss to the extent of previous distributions from a REIT to the shareholder that were required to be treated by such shareholder as long-term capital gain. Subject to certain requirements, distributions by a REIT to U.S. taxable investors in liquidation of such REIT will be treated as gain (or loss) from the sale or exchange of shares in the REIT.

*U.S. Withholding Taxes* 

Although each U.S. Series II Shareholder is required to provide an IRS Form W-9, we nevertheless may be unable to accurately or timely determine the tax status of Series II Shareholders for purposes of determining whether U.S. withholding applies to payments made by Series II to some or all Series II Shareholders. In such a case, payments made by Series II to U.S. Series II Shareholders might be subject to U.S. "backup" withholding at the applicable rate or other U.S. withholding taxes. Series II Shareholders would be able to treat as a credit their allocable share of any U.S. withholding taxes paid in the taxable year in which such withholding taxes were paid and, as a result, might be entitled to a refund of such taxes from the IRS. In the event Series II Shareholders redeem, transfer or otherwise dispose of some or all of their Series II Shares, special rules might apply for purposes of determining whether such Series II Shareholders or the transferees of such Series II Shares were subject to U.S. withholding taxes in respect of income allocable to, or distributions made on account of, such Series II Shares or entitled to refunds of any such taxes withheld.

#### Consequences to Tax-Exempt U.S. Series II Shareholders
It is not presently expected that the activities of the Company will give rise to UBTI allocable to U.S. tax-exempt organizations (including tax-exempt accounts). Notwithstanding the foregoing, income recognized by a U.S. tax-exempt organization (including a tax-exempt account) is exempt from U.S. federal income tax except to the extent of the organization's UBTI. UBTI is defined generally as any gross income derived by a tax-exempt organization (including a tax-exempt account) from an unrelated trade or business that it regularly carries on, less the deductions directly connected with that trade or business. In addition, income arising from a partnership (or other entity treated as a partnership for U.S. federal income tax purposes) that holds operating assets or is otherwise engaged in a trade or business generally will constitute UBTI. Notwithstanding the foregoing, UBTI generally does not include any dividend income, interest income, certain other categories of passive income or capital gains realized by a tax-exempt organization (including a tax-exempt account), so long as such income is not "debt financed," as discussed below. Series II believes that it should not be regarded as engaged in a trade or business, and anticipates that any operating assets held by Series II will be held through entities that are treated as corporations for U.S. federal income tax purposes.

The exclusion from UBTI does not apply to income from "debt-financed property," which is treated as UBTI to the extent of the percentage of such income that the average acquisition indebtedness with respect to the property bears to the average tax basis of the property for the taxable year. If an entity treated as a flow-through for U.S. federal income tax purposes, such as Series II, incurs acquisition indebtedness, a tax-exempt partner in such flow-through entity (including one holding through a flow-through structure) will be deemed to have acquisition indebtedness equal to its allocable portion of such acquisition indebtedness. If any such indebtedness were used by Series II (or deemed to be used) to acquire property, such property generally would constitute debt-financed property, and any income from or gain from the disposition of such debt-financed property allocated to a tax-exempt organization (including a tax-exempt account) generally would constitute UBTI to such tax-exempt organization, subject to certain exceptions in

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cases where debt is paid off. In addition, even if such indebtedness were not used (or deemed to be used) by Series II to acquire property but were instead used to fund distributions to Series II Shareholders, if a tax-exempt organization (including a tax-exempt account) subject to taxation in the United States were to use such proceeds to make an investment outside Series II, the IRS might assert that such acquisition constitutes debt-financed property to such Series II Shareholder with the consequences noted above. It is not presently expected that Series II will incur indebtedness in a manner that generates UBTI attributable to debt-financed property.

Series II may (but is not required to) hold a portion of its investments through one or more REIT Subsidiaries. Dividends from a REIT Subsidiary will generally not be treated as UBTI to tax-exempt U.S. Series II Shareholders, even if the property held by the REIT Subsidiary is debt-financed, except to the extent of "acquisition indebtedness" with respect to the investment in the REIT Subsidiary. However, an investment in a "pension-held REIT" within the meaning of section 856(h)(3)(D) of the Code may give rise to UBTI.

Tax-exempt U.S. Series II Shareholders should consult their own tax advisers regarding the tax consequences of a purchase of Series II Shares.

#### Consequences to Non-U.S. Series II Shareholders
Series II may acquire the Portfolio Assets (other than the Portfolio Assets that are treated as corporations for U.S. federal income tax purposes) indirectly through entities that are treated as corporations for U.S. federal income tax purposes or REIT Subsidiaries (as discussed above under "*—REIT Subsidiaries*"), and as a result does not expect that any such acquisition will generate income treated as effectively connected with a U.S. trade or business (other than effectively connected income attributable to the sale of a United States real property interest). However, no assurance can be given that Series II Shareholders will not incur income treated as effectively connected with a U.S. trade or business. If, as anticipated, Series II is not treated as engaged in a U.S. trade or business or as deriving income which is treated as effectively connected with a U.S. trade or business, and provided that a Non-U.S. Series II Shareholder is not itself engaged in a U.S. trade or business, then such Non-U.S. Series II Shareholder generally will not be subject to U.S. tax return filing requirements solely as a result of owning Series II Shares and generally will not be subject to U.S. federal income tax on its allocable share of Series II's interest and dividends from non-U.S. sources or gain from the sale or other disposition of securities or real property located outside of the United States.

However, there can be no assurance that the law will not change or that the IRS will not deem Series II to be engaged in a U.S. trade or business. If, contrary to our expectations, Series II is treated as engaged in a U.S. trade or business, then a Non-U.S. Series II Shareholder generally would be required to file a U.S. federal income tax return, even if no effectively connected income were allocable to it. If Series II were to have income treated as effectively connected with a U.S. trade or business, then a Non-U.S. Series II Shareholder would be required to report that income and would be subject to U.S. federal income tax at the regular graduated rates. In addition, Series II might be required to withhold U.S. federal income tax on such Non-U.S. Series II Shareholder's distributive share of such income at the highest rate of income tax applicable to such Non-U.S. Series II Shareholder based on the status of such Non-U.S. Series II Shareholder. A corporate Non-U.S. Series II Shareholder might also be subject to branch profits tax at a rate of 30%, or at a lower treaty rate, if applicable. If, contrary to expectation, Series II were engaged in a U.S. trade or business, then gain or loss from the sale of Series II Shares by a Non-U.S. Series II Shareholder would be treated as effectively connected with such trade or business to the extent that such Non-U.S. Series II Shareholder would have had effectively connected gain or loss had Series II sold all of its assets at their fair market value as of the date of such sale. In such case, any such effectively connected gain generally would be taxable at the regular graduated U.S. federal income tax rates, and the amount realized from such sale generally would be subject to a 10% U.S. federal withholding tax.

Further, it is possible that Series II will recognize gain from the sale of a United States real property interest. Regardless of whether Series II's activities constitute a trade or business giving rise to U.S. "effectively connected" income, under provisions added to the Code by the Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA"), Non-U.S. Series II Shareholders (other than certain qualified foreign pension funds) are taxed on the gain derived from the dispositions of United States real property interests (including gain allocated to a Non-U.S. Series II Shareholder upon a sale of such property interests by Series II). A United States real property interest includes an interest in a United States real property holding corporation. Under FIRPTA, Non-U.S. Series II Shareholders treat gain or loss from dispositions of U.S. real property interests as if the gain or loss were "effectively connected" with a

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U.S. trade or business and, therefore, are required to pay U.S. taxes at regular U.S. rates on such gain or loss. As a result, Non-U.S. Series II Shareholders that receive income allocations from the sale of a United States real property interest (including distributions from a REIT Subsidiary to the extent attributable to the disposition by the REIT Subsidiary of a United States real property interest) may be required to file a United States federal income tax return and may be subject to United States federal income tax at regular U.S. rates on a sale, exchange or other disposition of such United States real property interest. Generally, with respect to gain attributable to Series II's sale of a United States real property interest that is allocated to a Non-U.S. Series II Shareholder, Series II will be required to withhold at the highest rate of income tax applicable to each Non-U.S. Series II Shareholder based on the status of such Non-U.S. Series II Shareholder. Also, such gain may be subject to a 30% branch profits tax (as discussed above).

Upon a sale of a Non-U.S. Series II Shareholder's Shares, if (i) 50% or more of Series II's gross assets consist of U.S. real property interests and (ii) 90% or more of Series II's gross assets consist of U.S. real property interests and cash or cash equivalents, a purchaser will be required to withhold tax pursuant to Section 1445 of the Code on the full amount of the purchase price. Regardless of whether Series II satisfies these requirements, gain attributable to its U.S. real property interests may be subject to U.S. federal income tax.

In general, even if Series II is not engaged in a U.S. trade or business, and assuming Series II Shareholders are not otherwise engaged in a U.S. trade or business, Non-U.S. Series II Shareholders will nonetheless be subject to a withholding tax of 30% on the gross amount of certain U.S.-source income which is not effectively connected with a U.S. trade or business. Income subjected to such a flat tax rate is income of a fixed or determinable annual or periodic nature, including dividends and certain interest income. Such withholding tax may be reduced or eliminated with respect to certain types of income under an applicable income tax treaty between the United States and a Series II Shareholder's country of residence or under the "portfolio interest" rules or other provisions of the Code, provided that such Series II Shareholder provides proper certification as to their eligibility for such treatment. Notwithstanding the foregoing, and although each Non-U.S. Series II Shareholder is required to provide us with an IRS Form W-8, we nevertheless may be unable to accurately or timely determine the tax status of Series II Shareholders for purposes of establishing whether reduced rates of withholding apply to some or all Series II Shareholders. In such a case, a Series II Shareholder's allocable share of distributions of U.S.-source dividend and interest income will be subject to U.S. withholding tax at a rate of 30%. Further, if such Series II Shareholder would not be subject to U.S. tax based on their tax status or otherwise were eligible for a reduced rate of U.S. withholding, such Series II Shareholder might need to take additional steps to receive a credit or refund of any excess withholding tax paid on their account, which could include the filing of a non-resident U.S. income tax return with the IRS. Among other limitations applicable to claiming treaty benefits, if a Series II Shareholder resides in a treaty jurisdiction which does not treat Series II as a pass-through entity, such Series II Shareholder might not be eligible to receive a refund or credit of excess U.S. withholding taxes paid on their account. In the event a Series II Shareholder elects to redeem, sell or exchange some or all of their Series II Shares, special rules may apply for purposes of determining whether such Series II Shareholder or the transferee of such Series II Shares are subject to U.S. withholding taxes in respect of income allocable to, or distributions made on account of, such Series II Shares or entitled to refunds of any such taxes withheld. See "*Series II—Consequences to U.S. Series II Shareholders—Sale or Exchange/Redemption of Series II Shares*." Prospective Series II Shareholders should consult their own tax adviser regarding the treatment of U.S. withholding taxes.

Special rules may apply to any Non-U.S. Series II Shareholder (i) that has an office or fixed place of business in the United States; (ii) that is an individual present in the United States for 183 days or more in a taxable year, calculated taking into account a portion of the days such individual was present in the United States in the preceding two years; or (iii) that is (a) a former citizen or long-term resident of the United States, (b) a foreign insurance company that is treated as holding a partnership interest in Series II in connection with its U.S. business, (c) a PFIC, (d) a CFC or (e) a corporation that accumulates earnings to avoid U.S. federal income tax. Prospective Series II Shareholders should consult their own tax adviser regarding the application of these special rules.

#### Taxes in Other Jurisdictions
In addition to U.S. federal income tax consequences, a purchase of Series II Shares could subject Series II Shareholders to U.S. state and local taxes in the U.S. state or locality in which they are a resident for tax purposes. Series II Shareholders could also be subject to tax return filing obligations and income, franchise or other taxes, including withholding taxes, in non-U.S. jurisdictions in which Series II acquires investments. We will attempt, to the extent reasonably practicable, to structure our operations and acquisitions so as to avoid income tax filing

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obligations by U.S. Series II Shareholders in non-U.S. jurisdictions. However, there may be circumstances in which we are unable to do so. Income or gain from assets held by Series II may be subject to withholding or other taxes in jurisdictions outside the United States, except to the extent an income tax treaty applies. If Series II Shareholders wish to claim the benefit of an applicable income tax treaty, they might be required to submit information to tax authorities in such jurisdictions. Prospective Series II Shareholders should consult their own tax adviser regarding the U.S. state, local and non-U.S. tax consequences of a purchase of Series II Shares in Series II.

#### Information Returns and Audit Procedures
We have agreed to use commercially reasonable efforts to furnish Series II Shareholders U.S. tax information (including estimates of the taxable income or loss computed for U.S. tax purposes allocated to them within 90 calendar days of the end of the fiscal year). However, while delays are not expected, providing this U.S. tax information to Series II Shareholders could be subject to delay in the event of, among other reasons, evolving reporting and compliance requirements or other events. It is therefore expected that, in any taxable year, Series II Shareholders will need to apply for an extension of time to file the Shareholders' tax returns. In preparing this U.S. tax information, we will use various accounting and reporting conventions, some of which have been mentioned in the previous discussion, to determine a Series II Shareholder's share of income, gain, loss and deduction. The IRS may successfully contend that certain of these reporting conventions are impermissible, which could result in an adjustment to the Shareholders' income or loss.

Series II may be audited by the IRS. Adjustments resulting from an IRS audit could require Series II Shareholders to adjust a prior year's tax liability and result in an audit of their own tax return. Any audit of a Series II Shareholder's tax return could result in adjustments not related to Series II's tax returns, as well as those related to Series II's tax returns. If the IRS makes an audit adjustment to our income tax returns, it may assess and collect any taxes (including penalties and interest) resulting from such audit adjustment directly from Series II instead of Series II Shareholders. We may be permitted to elect to have the Operating Manager and Series II Shareholders take such audit adjustment into account in accordance with their interests during the taxable year under audit. However, there can be no assurance that we will choose to make such election or that it will be available in all circumstances. If we do not make the election, and we pay taxes, penalties or interest as a result of an audit adjustment, then cash available for distribution to Series II Shareholders might be substantially reduced. As a result, current Series II Shareholders might bear some or all of the cost of the tax liability resulting from such audit adjustment, even if current Series II Shareholders did not own Series II Shares during the taxable year under audit.

Pursuant to the partnership audit rules, a "partnership representative" designated by Series II will have the sole authority to act on behalf of Series II in connection with any administrative or judicial review of Series II's items of income, gain, loss, deduction or credit. In particular, the partnership representative will have the sole authority to bind both former and current Series II Shareholders and to make certain elections on behalf of Series II pursuant to the partnership audit rules. Prospective Series II Shareholders should consult their own tax adviser regarding the implications of the partnership audit rules for a purchase of Series II Shares.

#### Foreign Account Tax Compliance
Under Sections 1471 through 1474 of the Code (such Sections commonly referred to as "FATCA"), a 30% withholding tax is imposed on "withholdable payments" made to a "foreign financial institution" or a "non-financial foreign entity," unless such financial institution or entity satisfies certain information reporting or other requirements. Withholdable payments include certain U.S.-source income, such as interest, dividends and other passive income. Proposed Treasury regulations eliminate the requirement to withhold tax under FATCA on gross proceeds from the sale or disposition of property that can produce U.S.-source interest or dividends. The IRS has announced that taxpayers are permitted to rely on the proposed regulations until final Treasury regulations are issued. We intend to comply with FATCA, so as to ensure that the 30% withholding tax does not apply to any withholdable payments received by the Company, or our assets. Nonetheless, the 30% withholding tax may also apply to such Series II Shareholder's allocable share of distributions attributable to withholdable payments, unless they properly certify their FATCA status on IRS Form W-8 or IRS Form W-9 (as applicable) and satisfy any additional requirements under FATCA.

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In compliance with FATCA, information regarding certain Series II Shareholders' ownership of Shares may be reported to the IRS or to a non-U.S. governmental authority. FATCA remains subject to modification by an applicable intergovernmental agreement between the United States and another country for cooperation to facilitate the implementation of FATCA, or by future Treasury regulations or guidance. Prospective Series II Shareholders should consult their own tax adviser regarding the consequences under FATCA of a purchase of Series II Shares.

#### Tax Shelter Regulations and Related Reporting Requirements
If Series II were to engage in a "reportable transaction," we (and possibly Series II Shareholders) would be required to make a detailed disclosure of the transaction to the IRS in accordance with regulations governing tax shelters and other potentially tax-motivated transactions. A transaction may be a reportable transaction based upon any of several factors, including the fact that it is a type of tax avoidance transaction publicly identified by the IRS as a "listed transaction" or "transaction of interest," or that it produces certain kinds of losses exceeding certain thresholds. Any purchase of Series II Shares may be considered a "reportable transaction" if, for example, Series II were to recognize certain significant losses in the future. In certain circumstances, a Series II Shareholder who disposes of an interest in a transaction resulting in the recognition by such holder of significant losses in excess of certain threshold amounts may be obligated to disclose its participation in such transaction. Certain of these rules are unclear, and the scope of reportable transactions can change retroactively. Therefore, it is possible that the rules may apply to transactions other than significant loss transactions.

Moreover, if Series II were to participate in a reportable transaction with a significant purpose to avoid or evade tax, or in any listed transaction, Series II Shareholders might be subject to significant accuracy-related penalties with a broad scope, for those persons otherwise entitled to deduct interest on federal tax deficiencies, non-deductibility of interest on any resulting tax liability, and in the case of a listed transaction, an extended statute of limitations. Series II does not intend to participate in any reportable transaction with a significant purpose to avoid or evade tax, nor does it intend to participate in any listed transactions. However, no assurance can be provided that the IRS will not assert that it has participated in such a transaction. Prospective Series II Shareholders should consult their own tax adviser concerning any possible disclosure obligation under the regulations governing tax shelters with respect to the disposition of Series II Shares.

#### Withholding and Backup Withholding
For each calendar year, Series II will report to the Shareholders and to the IRS the amount of distributions that we pay, and the amount of tax (if any) that we withhold on these distributions. The proper application to Series II of the rules for withholding under Sections 1441 through 1446 of the Code (applicable to certain dividends, interest and amounts treated as effectively connected with a U.S. trade or business, among other items) is unclear.

Under the backup withholding rules, Series II Shareholders may be subject to backup withholding tax with respect to distributions paid unless: (i) they are an exempt recipient and demonstrate this fact when required; or (ii) provide a taxpayer identification number, certify as to no loss of exemption from backup withholding tax, and otherwise comply with the applicable requirements of the backup withholding tax rules. A U.S. Series II Shareholder that is exempt should certify such status on a properly completed IRS Form W-9. A Non-U.S. Series II Shareholder may qualify as an exempt recipient by submitting a properly completed IRS Form W-8. Backup withholding is not an additional tax. The amount of any backup withholding from a payment to a Series II Shareholder will be allowed as a credit against their U.S. federal income tax liability and may entitle such Series II Shareholder to a refund from the IRS, provided they supply the required information to the IRS in a timely manner.

If Series II Shareholders do not timely provide Series II, or the applicable nominee, broker, clearing agent or other intermediary, with IRS Form W-9 or IRS Form W-8, as applicable, or such form is not properly completed, then Series II may become subject to U.S. backup withholding taxes in excess of what would have been imposed had Series II or the applicable intermediary received properly completed forms from all Series II Shareholders. For administrative reasons, and in order to maintain the fungibility of Shares, such excess U.S. backup withholding taxes, and if necessary similar items, may be treated by Series II as an expense that will be borne indirectly by all Shareholders on a pro rata basis (*e.g.*, since it may be impractical for us to allocate any such excess withholding tax cost to the Series II Shareholders that failed to timely provide the proper U.S. tax forms).

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#### Information Reporting with Respect to Foreign Financial Assets
Under Treasury regulations, certain U.S. persons that own "specified foreign financial assets" with an aggregate fair market value exceeding either $50,000 on the last day of the taxable year or $75,000 at any time during the taxable year generally are required to file an information report with respect to such assets with their tax returns. Significant penalties may apply to persons who fail to comply with these rules. Specified foreign financial assets include not only financial accounts maintained in foreign financial institutions, but also, unless held in accounts maintained by a financial institution, any stock or security issued by a non-U.S. person, any financial instrument or contract held for investment that has an issuer or counterparty other than a U.S. person, and any interest in a foreign entity. The failure to report information required under the current regulations could result in substantial penalties and in the extension of the statute of limitations with respect to federal income tax returns filed by such Series II Shareholder. Prospective Series II Shareholders should consult their own tax adviser regarding the possible implications of these Treasury regulations for a purchase of Series II Shares.

#### Other Tax Matters

#### Taxable Year
The Company uses the calendar year as its taxable year for U.S. federal income tax purposes. Under certain circumstances which we currently believe are unlikely to apply, a taxable year other than the calendar year may be required for Series II.

#### New Legislation or Administrative Judicial Action
The U.S. federal income tax treatment of Shareholders depends, in some instances, on determinations of fact and interpretations of complex provisions of U.S. federal income tax law for which no clear precedent or authority may be available. Shareholders should be aware that the U.S. federal income tax rules are constantly under review (including currently) by the Congressional tax writing committees and other persons involved in the legislative process, the IRS, the U.S. Treasury Department and the courts, frequently resulting in revised interpretations of established concepts, statutory changes, revisions to regulations and other modifications and interpretations, any of which could adversely affect the value of Shares and be effective on a retroactive basis. For example, changes to the U.S. federal income tax laws and interpretations thereof could make it more difficult or impossible for Series II to be treated as a partnership that is not taxable as a corporation for U.S. federal income tax purposes, change the character or treatment of portions of the Company's income, reduce the net amount of distributions available to Shareholders, or otherwise affect the tax considerations of owning Shares. Such changes could also affect or cause the Company to change the way it conducts its activities and adversely affect the value of Shares.

The foregoing discussion is not intended as a substitute for careful tax planning. The tax matters relating to the Company and Shareholders are complex and are subject to varying interpretations. Moreover, the effect of existing income tax laws, the meaning and impact of which is uncertain, and of proposed changes in income tax laws will vary with the particular circumstances of each Shareholder, and in reviewing this Annual Report these matters should be considered. Each Shareholder should consult its own tax adviser with respect to the U.S. federal, state, local and other tax consequences of any purchase of Shares.

#### Certain ERISA Considerations
The following is a summary of certain considerations associated with an investment in the Company by (i) "employee benefit plans" within the meaning of Section 3(3) of the U.S. Employee Retirement Income Security Act of 1974, as amended ("ERISA") that are subject to Part 4 of Subtitle B of Title I of ERISA, (ii) plans, individual retirement accounts ("IRAs") and other arrangements that are subject to Section 4975 of the Code or provisions under any other U.S. federal, state or local or non-U.S. or other laws or regulations that are similar to such provisions of ERISA or the Code (collectively, "Similar Laws") and (iii) entities whose underlying assets are considered to include the assets of any of the foregoing described in clauses (i) and (ii) (each of the foregoing described in clauses (i), (ii) and (iii) referred to herein as a "Plan").

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#### Fiduciary Duty of Investing Plans
ERISA and the Code impose certain duties on persons who are fiduciaries of a Plan which is a Benefit Plan Investor (as defined below) subject to Title I of ERISA or Section 4975 of the Code and prohibit certain transactions involving the assets of a Benefit Plan Investor and its fiduciaries or other interested parties. Under ERISA and the Code, any person who exercises any discretionary authority or control over the administration of a Benefit Plan Investor or the management or disposition of the assets of a Benefit Plan Investor, or who renders investment advice for a fee or other compensation to a Benefit Plan Investor, is generally considered to be a fiduciary of the Benefit Plan Investor.

In considering an investment in the Company of a portion of the assets of any Plan, a fiduciary should determine, particularly in light of the risks and lack of liquidity inherent in an investment in the Company, whether the investment is in accordance with the documents and instruments governing the Plan and the applicable provisions of ERISA, the Code or any Similar Law relating to a fiduciary's duties to the Plan including the prudence, diversification, delegation of control and prohibited transaction provisions of ERISA, the Code and any other applicable Similar Laws.

#### Prohibited Transaction Issues
Section 406 of ERISA and Section 4975 of the Code prohibit Benefit Plan Investors from engaging in specified transactions involving plan assets with persons or entities who are "parties in interest," within the meaning of ERISA, or "disqualified persons," within the meaning of Section 4975 of the Code, unless an exemption is available. A party in interest or disqualified person who engaged in a non-exempt prohibited transaction may be subject to excise taxes and other penalties and liabilities under ERISA and the Code. In addition, the fiduciary of the Benefit Plan Investor that engaged in such a non-exempt prohibited transaction may be subject to penalties and liabilities under ERISA and the Code. The fiduciary of a Benefit Plan Investor that proposes to purchase or hold any Shares should consider, among other things, whether such purchase and holding may involve the sale or exchange of any property between a Benefit Plan Investor and a party in interest or disqualified person, or the transfer to, or use by or for the benefit of, a party in interest or disqualified person, of any "plan assets." Depending on the satisfaction of certain conditions which may include the identity of the fiduciary of the Benefit Plan Investor making the decision to acquire or hold Shares on behalf of a Benefit Plan Investor, Prohibited Transaction Class Exemption ("PTCE") 91-38 (relating to investments by bank collective investment funds), PTCE 84-14 (relating to transactions effected by a "qualified professional asset manager"), PTCE 95-60 (relating to investments by an insurance company general account), PTCE 96-23 (relating to transactions directed by an in-house asset manager) or PTCE 90-1 (relating to investments by insurance company pooled separate accounts) could provide an exemption from the prohibited transaction provisions of ERISA and Section 4975 of the Code. Each of the above-noted exemptions contains conditions and limitations on its application. It should be further noted that even if the conditions specific to one or more of these exemptions are satisfied, the scope of relief provided by these exemptions may not necessarily cover all acts involving the Shares that might be construed as prohibited transactions. Fiduciaries of Benefit Plan Investors considering acquiring and/or holding Shares in reliance on these or any other exemption should carefully review the exemption in consultation with its own legal advisors to assure it is applicable. There can be no assurance that all of the conditions of any such exemptions will be satisfied with respect to any particular transaction involving the Shares.

#### Plan Assets
Under ERISA and the regulations promulgated thereunder as modified by Section 3(42) of ERISA (the "Plan Asset Regulations"), when Benefit Plan Investor acquires an equity interest in an entity that is neither a "publicly-offered security" (within the meaning of the Plan Asset Regulations, as described below) nor a security issued by an investment company registered under the Investment Company Act, the Benefit Plan Investor's assets include both the equity interest and an undivided interest in each of the underlying assets of the entity unless it is established either that less than 25% of the total value of each class of equity interest in the entity is held by Benefit Plan Investors (the "25% Test") or that the entity is an "operating company" (each as defined in the Plan Asset Regulations). For purposes of the 25% Test, the assets of an entity will not be treated as "plan assets" if, immediately after the most recent acquisition of any equity interest in the entity, less than 25% of the total value of each class of equity interest in the entity is held by Benefit Plan Investors, excluding equity interests held by persons (other than Benefit Plan Investors) with discretionary authority or control over the assets of the entity or who provide investment advice for a fee

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(direct or indirect) with respect to such assets, and any affiliates thereof. The term "benefit plan investors" ("Benefit Plan Investors") is generally defined to include "employee benefit plans" (within the meaning of Section 3(3) of ERISA) that are subject to Title I of ERISA, "plans" within the meaning of Section 4975 of the Code to which Section 4975 of the Code is applicable (including, without limitation, "Keogh" plans and IRAs), as well as any entity whose underlying assets include plan assets by reason of the investment in such entity by such an employee benefit plan or plan (e.g., an entity of which 25% or more of the total value of any class of equity interests is held by Benefit Plan Investors and which does not satisfy another exception under ERISA). The Company is not an investment company under the Investment Company Act. Thus, absent satisfaction of another exception under the Plan Asset Regulations, if 25% or more of the total value of any class of equity interests of the Company were held by Benefit Plan Investors, an undivided interest in each of the underlying assets of the Company would be deemed to be "plan assets" of any Benefit Plan Investor that invested in the Company.

Under the Plan Asset Regulations, a "publicly-offered security" is a security that is (a) "freely transferable," (b) part of a class of securities that is "widely held" and (c) (i) sold to the Benefit Plan Investor as part of an offering of securities to the public pursuant to an effective registration under the Securities Act, and the class of securities to which such security is a part is registered under the Exchange Act within 120 days after the end of the fiscal year of the issuer during which the offering of such securities to the public has occurred, or (ii) is part of a class of securities that is registered under Section 12 of the Exchange Act.

To the extent any class of our Shares is not "publicly-offered" within the meaning of the Plan Asset Regulations, the Company intends to use reasonable efforts to satisfy another exception to the Plan Asset Regulations, including prohibiting investment from, Benefit Plan Investors in one or more classes of our Shares. However, there can be no assurance that, notwithstanding such efforts of the Operating Manager, the Company will satisfy the Plan Asset Regulations, or the underlying assets of the Company will not otherwise be deemed to include "plan assets" within the meaning of the ERISA.

#### Plan Asset Consequences
If the assets of the Company were deemed to be "plan assets" under ERISA, this would result, among other things, in (i) the application of the prudence and other fiduciary responsibility standards of ERISA to acquisitions made by the Company and (ii) the possibility that certain transactions in which the Company might seek to engage in could constitute "prohibited transactions" under ERISA and the Code. Fiduciaries of Benefit Plan Investors who decide to invest in the Company could, under certain circumstances, be liable for prohibited transactions or other violations as a result of their investment in the Company or as co-fiduciaries for actions taken by or on behalf of the Company. With respect to an IRA that invests in the Company, the occurrence of a prohibited transaction involving the individual who established the IRA, or his or her beneficiaries, would cause the IRA to lose its tax-exempt status.

The foregoing statements regarding the consequences under ERISA and the Code of an investment in the Company are based on the provisions of ERISA and the Code as currently in effect and the existing administrative and judicial interpretations thereunder. No assurance can be given that administrative, judicial or legislative changes that would make the foregoing statements incorrect or incomplete will not occur.

#### Reporting Obligations
Under ERISA's general reporting and disclosure rules, certain Benefit Plan Investors subject to Title I of ERISA are required to file annual reports (Form 5500) with the DOL regarding their assets, liabilities and expenses. To facilitate compliance with these requirements it is noted that the descriptions contained in this Annual Report of fees and compensation, including the Management Fee and the Performance Fee payable to the Operating Manager, are intended to satisfy the disclosure requirements for "eligible indirect compensation" for which the alternative reporting option on Schedule C of Form 5500 may be available.

While Plans that are governmental plans, certain church plans and non-U.S. plans may not be subject to the fiduciary responsibility or prohibited transaction provisions of Title I of ERISA or Section 4975 of the Code, such Plans may nevertheless be subject to Similar Laws. Fiduciaries of any such Plans, in consultation with their advisors and legal counsel, should consider the impact of their respective laws and regulations on an investment in the Company and the considerations discussed above, if applicable.

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#### Important Notice for Plans
Each Plan proposing to invest in the Company will be deemed to make certain representations, including, but not limited to, that it is, and any fiduciaries responsible for the Plan's investment are, professionally advised, aware of and understand the Company's business objectives, policies and strategies and that the decision to invest plan assets in the Company was made with appropriate consideration of relevant investment factors with regard to the Plan and is consistent with the duties and responsibilities imposed upon fiduciaries with regard to their investment decisions under applicable law, including ERISA and applicable Similar Law. This Annual Report does not constitute an undertaking to provide impartial investment advice and it is not our intention to act in a fiduciary capacity with respect to any Plan. PIMCO, the Operating Manager and their respective affiliates (the "Relevant Entities") have a financial interest in investors' investment in the Shares on account of the fees and other compensation they expect to receive (as the case may be) from the Company and their other relationships with the Company as contemplated hereunder. Any such fees and compensation do not constitute fees or compensation rendered for the provision of investment advice to any Plan. Each Plan which acquires or holds any Shares will be deemed to represent and warrant that it is advised by a fiduciary that is (a) independent of the Relevant Entities; (b) capable of evaluating investment risks independently, both in general and with respect to particular transactions and investment strategies contemplated in this Annual Report; and (c) a fiduciary (under ERISA, Section 4975 of the Code or applicable Similar Law) with respect to the Plan's investment in the Shares, who is responsible for exercising independent judgment in evaluating the Plan's investment in the Shares and any related transactions.

The sale of Shares to a Plan is in no respect a representation by us or any other person associated with the offering of our Shares that such an investment meets all relevant legal requirements with respect to investments by Plans generally or any particular Plan, or that such an investment is appropriate for Plans generally or any particular Plan.

Each Benefit Plan Investor is advised to contact its own legal, financial advisor or other fiduciary unrelated to the relevant entities about whether an investment in our Shares, or any decision to continue to hold, transfer, vote or provide any consent with respect to any such Shares, may be appropriate for the Plan's circumstances.

#### Item 1A. Risk Factors
An investment in the Company involves significant risks and other considerations and, therefore, should be undertaken only by prospective investors capable of evaluating and bearing such risks and other considerations. A Shareholder must have the ability to understand, the financial capacity and the willingness to accept, the extent of its exposure to the risks and lack of liquidity inherent in an investment in the Shares. Shareholders with any doubts as to the suitability of an investment in the Company should consult their professional advisors to assist them in conducting their own legal, tax, accounting and financial evaluation of the merits and risks of an investment in the Company in light of their own circumstances and financial condition. The Company cannot predict the performance of its Portfolio Assets and, accordingly, the Company is not suitable as the sole investment vehicle for a Shareholder. In addition, there will be occasions when the Operating Manager and its affiliates will encounter potential conflicts of interest in connection with the Company, as described below under "Item 13. Certain Relationships and Related Transactions, and Director Independence." The following discussion enumerates certain risk factors that should be carefully evaluated before making a purchase of the Shares. This summary does not purport to be a complete discussion of all of the risks and other factors and considerations which relate to or might arise from investing in the Company or from the Company's Portfolio Assets. As used herein, the term "Company" refers to PALCO and each Series thereof, as applicable. For the avoidance of doubt, the Company is a holding company operating through its subsidiaries, and risk factors that describe the Company's assets mean assets held indirectly by the Company through such subsidiaries. For purposes of this "Item 1A. Risk Factors," the term "Portfolio Asset" shall be deemed to include, at any time, then-current and potential Portfolio Assets, unless the context otherwise requires.

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#### Risks Related to the Company and an Investment in the Shares

#### The Company faces heightened risks because it is a recently formed entity with a limited operating history and record.
The Company is a recently formed entity. Accordingly, the Company has a limited performance history for a prospective shareholder to consider. The Company commenced its operations in July 2025 and, therefore, has limited operating history upon which prospective Shareholders can evaluate their performance. Prospective Shareholders should not construe, and should draw no conclusions from, the prior experience of the Operating Manager or the performance of any other investment entities associated with PIMCO, as providing any assurances regarding the performance of the Company.

#### The Company's Portfolio Assets (including the Asset-Backed Instruments) may not achieve the Company's business objectives or generate returns for Shareholders.
Shareholders rely on the ability of the Operating Manager to choose, acquire and dispose the Portfolio Assets, and there is no assurance that the Operating Manager will find attractive opportunities to meet the Company's objectives or that the Company will be able to acquire and dispose the Portfolio Assets (including Asset-Backed Instrument) or other assets. The realizable value of a highly illiquid asset, at any given time, could be less than its intrinsic value. In addition, it is possible that certain Portfolio Assets held by the Company's subsidiaries will require a substantial amount of time to liquidate. There can be no assurance that the Company will be able to generate returns for its Shareholders or that the returns will be commensurate with the risks of acquiring the type of companies and transactions described herein. There can be no assurance that any Shareholder will receive any distribution from the Company. The Company bears fees, costs and expenses incurred in developing, investigating, negotiating or structuring any acquisition of Portfolio Assets (including the Asset-Backed Instruments) in which the Company does not actually consummate (including any such fees, costs and expenses not borne by Co-Investors (as defined below)) and fees, costs and expenses associated with joint ventures or similar arrangements ("Joint Venture") and portfolios of Asset-Backed Instruments which are part of the same acquisition strategy ("Programmatic Acquisition").

In certain instances, the Company, through its subsidiaries, may acquire a Portfolio Asset (including an Asset-Backed Instrument) with the intent to subsequently sell or syndicate a portion of such Portfolio Asset to Co-Investors or other persons (including PIMCO or PIMCO Clients) prior to the closing of the acquisition of such Portfolio Asset. In such event, the Company will bear the risk that any or all of the excess portion of such Portfolio Asset will not be sold or will only be sold on unattractive terms and that, as a consequence, the Company will bear the entire portion of any fees, costs and expenses related to such Portfolio Asset, hold a larger than expected Portfolio Assets in the applicable asset class or could realize lower than expected returns from such Portfolio Assets (see also "—*Additional Risks Related to the Operation of the Company Generally*—*The Company's business may be affected by offering Co-Investments or opportunities to provide debt financing to any person*" below). Any such sell down or syndication will not be deemed to be a cross trade or principal trade and, as such, will not require the approval of the Board, the Shareholders or any other person. Further, any "back-to-back" commitment or assignment of a commitment in connection with an acquisition similarly will not be deemed a cross trade or a principal trade. Accordingly, an investment in the Company should only be considered by prospective investors who do not require current income and can afford a loss of their entire investment.

***The Company's ability to achieve its business objectives depends on the Operating Manager because the Operating Manager has significant discretion as to the implementation of the Company's objectives and policies.***

The Company depends on the diligence, skill and business relationships of the employees of the Operating Manager. The Company is reliant on the Operating Manager. In particular, the Company's performance will depend on the success of the Operating Manager's acquisition and disposition of the Portfolio Assets. The Company depends on the Operating Manager's assessment of appropriate economic terms when entering transactions to acquire or dispose the Portfolio Assets. Economic terms determined by the Operating Manager in respect of each acquisition will be based on the Operating Manager's assessment of a variety of factors. Each of these factors involves subjective judgments and forward-looking determinations by the Operating Manager. In conducting such assessment, the Operating Manager expects to use publicly available information as well as private information, including from consultants and investment bankers. If the Operating Manager misprices an acquisition (for whatever reason) or due to unanticipated illiquidity, the actual returns on the acquisition could be less than anticipated at the time of acquisition or disposition and could result in a disposition at a price less than the acquisition price.

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In addition, the acquisition processes described herein are subject to change at any time without notice. There can be no assurance that (i) the acquisition processes identified herein will continue to be employed by the Company or the Operating Manager or (ii) members of the PALCO acquisition team identified herein will continue to be associated with or employed by PIMCO or any of its affiliates. Past performance of any PIMCO Client or acquisition utilizing any of the acquisition processes identified above is in no way indicative of future results.

#### The Company's Shares are not registered under the Securities Act, so they are subject to heightened restrictions on transferability and resale.
The Shares are not registered under the Securities Act or the securities laws of any state or other jurisdiction and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such laws. It is not contemplated that the Shares will ever be registered under the Securities Act. The Shares are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under the Securities Act and other applicable securities laws. Shareholders' Subscription Agreements and the LLC Agreement contain representations and impose restrictions on transferability designed to assure that the conditions of the exemptions from such registration requirements are met. Shareholders also may not be permitted to transfer all or any part of their Shares to a person which gives rise to CFIUS (as defined below) or national security considerations with respect to the Company, an existing or potential Portfolio Assets or any of their actual or potential underlying assets. See "—*The Company could be subject to review and approval by CFIUS or other regulatory agencies resulting in limitations or restrictions on its acquisitions and Joint Ventures*" below. Shareholders also may not be permitted to transfer all or any part of their Shares to a person that would require PALCO to register under the Investment Company Act.

***There is no market for the Shares, and Shareholders bear the risks of owning Shares for an extended period of time due to limited repurchases.***

The Shares have not been registered under the Securities Act, the securities laws of any state or the securities laws of any other jurisdiction and cannot be resold unless they are subsequently registered under the Securities Act and other applicable securities laws or an exemption from registration is available. There is no public market for the Shares and none is expected to develop. Accordingly, there are no quoted prices for the Shares. In addition, there are substantial restrictions upon the repurchase of Shares under the LLC Agreement and applicable securities laws, including that the Company may limit the number of Shares subject to Share Repurchases or may decide to not conduct Share Repurchases for certain periods. Consequently, Shareholders must be prepared to bear the risks of owning Shares for an extended period of time. See "*Item 1. Business—Share Repurchases*."

***Shareholders have limited liquidity and may be limited in their opportunity to have their Shares repurchased and may not receive a full return of their invested capital if they elect to have their Shares repurchased by the Company.***

A purchase of the Company's Shares requires a long-term commitment, with no certainty of return and should be viewed as an illiquid investment. Certain Portfolio Assets may be held for the long term. Since there is no established market for the Shares, and none is expected to develop, a Shareholder of the Company will be unable to sell or otherwise dispose its Portfolio Assets readily and may encounter difficulty ascertaining the market value of its Shares. Shares in the Company are subject to restrictions on resales under applicable securities laws. Repurchases of Shares by the Company will likely be the only way for a Shareholder to dispose of Shares. It is uncertain as to when profits, if any, will be realized by a Shareholder and if such Shareholder will realize profits from the Company prior to the Company repurchasing its Shares. Losses on dispositions of unsuccessful Portfolio Assets may be realized before gains on dispositions of successful Portfolio Assets are realized. Furthermore, the expenses of operating the Company (including any fees payable to the Operating Manager (or an affiliate thereof)) may exceed its income, thereby requiring that the difference be paid from the Company's assets. The Company is not obligated to liquidate any instruments in order to meet repurchase requests under the Repurchase Plan and the Company may not have sufficient cash flow to meet repurchase requests at any given time. If the Operating Manager determines there is insufficient liquidity to meet repurchase requests, such requests will be delayed until the Operating Manager determines there is sufficient liquidity; such delay may be significant. The Company, through its subsidiaries, intends to primarily own Portfolio Assets for the long term. The number of potential purchasers and sellers is expected to be

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limited. This factor could have the effect of limiting the availability of Portfolio Assets for purchase by the Company and will also limit the ability of the Company to sell Portfolio Assets at their fair market value in response to changes in the economy or financial markets. Illiquidity could also result from legal or contractual restrictions on their resale.

The realizable value of a highly illiquid Portfolio Asset at any given time could be less than its intrinsic value. In addition, certain types of Portfolio Assets owned by the Company's subsidiaries are likely to require a substantial length of time to liquidate. There can be no assurance that the Company will be able to dispose of its instruments at the price and at the time it wishes to do so. Such illiquidity may continue even if the underlying entities obtain listings on securities exchanges.

A purchase of the Company's Shares is suitable only for sophisticated investors and an investor must have the financial ability to understand and the willingness to accept the extent of its exposure to the risks and lack of liquidity inherent in a purchase of the Company's Shares. Shareholders should consult their professional advisors to assist them in making their own legal, tax, regulatory, accounting and financial evaluation of the merits and risks of a purchase of the Company's Shares in light of their own circumstances and financial condition.

Certain acquisitions by the Company may be of securities that are or become publicly traded and are therefore subject to the risks inherent in holding public securities. Such holdings will involve economic, political, interest rate and other risks, any of which could result in an adverse change in the market price. In addition, in some cases the Company will be prohibited by contract or other limitations from selling such securities for a period of time so that the Company is unable to take advantage of favorable market prices. Such factors will be used in calculating monthly NAV, and the Company's monthly NAV is not audited by its independent registered public accounting firm. The Company calculates and publishes the NAV of its Shares monthly solely for purposes of establishing the price at which the Company sells and repurchase its Shares, and for publishing the value of each Shareholder's investment in the Company on such Shareholder's customer account statement, and the Company's monthly NAV should not be viewed as a measure of the Company's historical or future financial condition or performance. The components and methodology used in calculating the Company's monthly NAV may differ from those used by other companies now or in the future. Errors may occur in calculating the Company's monthly NAV, which could impact the price at which the Company sells and repurchases its Shares.

***There is no public trading market for the Shares; therefore, a Shareholder's ability to dispose of its Shares will likely be limited to repurchase by the Company. If a Shareholder sells its Shares to the Company, the Shareholder may receive less than the price it paid.***

There is no current public trading market for the Shares, and the Company does not expect that such a market will ever develop. Therefore, repurchase of Shares by the Company will likely be the only way for a Shareholder to dispose of its Shares. While the Company intends to continue to conduct quarterly Share Repurchases, there is no guarantee that the Company will elect to conduct a Share Repurchase. Moreover, even if the Company conducts a Share Repurchase, there is no guarantee that Shareholders will be able to sell all of the Shares that they desire to sell in any particular Share Repurchase. In the event that the Company repurchases Shares in any Share Repurchase, the Company expects to repurchase Shares at an applicable price equal to either the NAV per Share, or a discount to the NAV per Share, of the type of Shares being repurchased as of the last calendar day of the calendar quarter prior to the commencement of the Share Repurchase and not based on the price at which a Shareholder initially purchased its Shares. As a result, a Shareholder may receive less than the price it paid for its Shares when the Shareholder sells them to the Company pursuant to any Share Repurchase.

***Economic events that may cause the Company's Shareholders to request that the Company repurchase their Shares in connection with a Share Repurchase may materially and adversely affect the Company's cash flows, its results of operations and its financial condition.***

Economic events could cause the Company's Shareholders to seek to sell their Shares to the Company pursuant to any Share Repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of the Company's outstanding Shares at an applicable price based on the NAV per Share at a time when such events are adversely affecting the performance of the Company. Even if the Company decides to satisfy all resulting repurchase requests, its cash flow could be materially adversely affected. In addition, if the Company determines to sell Portfolio Assets to fund a Share Repurchase, the Company may not be able to meet future repurchase requests, take advantage of new acquisition opportunities or realize the return on such Portfolio Assets that the Company may have been able to achieve had it sold at a more favorable time, and the Company's results of operations and financial condition could be materially adversely affected.

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#### The Company may require a Shareholder to have their Shares repurchased at any time in the Company's sole discretion.
The Company may require a Shareholder to surrender and have all or any portion of its Shares repurchased at any time if the Company determines that it would be in its interest, in consultation with the Operating Manager, for the Company to repurchase the Shares or for certain other reasons enumerated in the LLC Agreement. To the extent that the Company requires the mandatory repurchase of any Shares of any Shareholder, such repurchase will not be subject to the repurchase limits on quarterly Share Repurchases, unless otherwise determined by the Company in its sole discretion.

#### The amount of any distributions the Company may pay is uncertain. The Company may not be able to sustain the payment of distributions.
Distributions to Shareholders will be made only if, as and when declared by the Board. Shareholders may or may not receive distributions. In addition, some of the Company's distributions may include a return of capital. The Company cannot make assurances as to when or whether cash distributions will be made to Shareholders, the amount of any such distribution or the availability of cash for any such distribution, since the ability to make distributions will be dependent upon the cash flow, financial condition and other factors relating to the Portfolio Assets. Such factors include the ability to generate sufficient cash from operations to pay expenses, service debt and to satisfy other liabilities as they come due. Furthermore, the Operating Manager, in its sole discretion, may use or set aside cash for working capital purposes, or for the funding of present or future reserves for contingent liabilities, taxes, acquisition activities, or actual or anticipated Management Fees. If the Operating Manager determines that all or any portion of net capital event proceeds are not necessary for ongoing expenses (including debt payments and fees), anticipated acquisitions, capital expenditures and reserves, such amounts may be used to satisfy repurchase requests at the Board's discretion in consultation with the Operating Manager. Accordingly, the payment of cash distributions is subject to the discretion of the Board, based on information provided by the Operating Manager.

The Operating Manager has the right to reinvest certain proceeds realized from Portfolio Assets by the Company. For all such purposes, proceeds realized by the Company will include amounts deemed distributed, but not actually distributed, to a Shareholder in respect of taxes (whether withheld from distributions to the Company or otherwise attributable to a Shareholder). Subject to oversight by the Board, the Operating Manager may elect to reinvest all such proceeds otherwise available for distribution to Shareholders.

There could be circumstances under which the Operating Manager elects to withhold distributions to, among other reasons, pay obligations such as indebtedness of the Company, or of any subsidiary or assets thereof, which could result in such amounts, and the retention and reuse thereof, not being subject to the terms and limitations of the LLC Agreement.

Neither the Operating Manager nor any of its affiliates is obligated to support or guarantee any level of distributions. In addition, because the Operating Manager does not charge a Management Fee on, and the Operating Manager does not receive a Performance Fee for, the E Shares, the per Share amount of distributions on the E Shares could be higher compared to the Shares.

#### The Company is subject to substantial fees and expenses, which could impact Shareholder returns.
The Company pays the Management Fee, Organizational and Offering Expenses and Operating Expenses whether or not it makes any profits, as set forth in the Operating Agreement and the LLC Agreement. If PIMCO pays such expenses on behalf of the Company or related to any Portfolio Assets, PIMCO will seek and obtain reimbursement from the Company or through such Portfolio Assets and, to the extent PIMCO incurred a cost of capital for the time period between payment of the expense and reimbursement by the Company or through such Portfolio Asset, PIMCO has the authority to include such amount in the amount reimbursed from the Company or through such

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Portfolio Assets (with PIMCO determining in its discretion whether to include (i) the calculation of the aggregate amount of the cost of capital and (ii) such amount as part of the reimbursement). This includes amounts payable to or in respect of any PIMCO personnel or engagement of consultants, operating partners, operating executives or similar persons. No such amounts will constitute Special Fees and, therefore, such amounts will not reduce Management Fees paid by the Company. It is difficult to predict the future expenses of the Company. Such expenses will be substantial, and neither the Company's expenses nor its fees (other than the amount of Organizational and Offering Expenses that may be ultimately borne by the Company) is subject to any cap.

#### Payment by the Company of the Management Fee or Performance Fee in Shares will dilute a Shareholder's interest in the Company.
At the Operating Manager's election, the Company may pay the Operating Manager all or a portion of its Management Fees in the E Shares in lieu of paying the Operating Manager an equivalent amount of such Management Fee in cash, which will dilute the interests of Shares issued by the Company. In addition, the Company may pay PIMCO all or a portion of its Performance Fee in the E Shares in lieu of paying PIMCO an equivalent amount of such Performance Fee in cash, which will similarly dilute the interests of Shares issued by the Company.

***The Company is responsible for the costs of its personnel and employees and for the costs of certain of the Operating Manager's employees when used for the Company's benefit.***

PIMCO has in-house accounting, legal, compliance, tax, administrative, management, operational, finance, risk, reporting, technology, investor servicing and other types of personnel or employees that provide support to PIMCO Clients (including the Company and its Portfolio Assets) and their respective subsidiaries and potential and existing platforms on an ongoing basis. These employees assist with, among other things, the legal, compliance, tax, administrative, operational, finance, risk, reporting, technology, investor servicing and other functions of the Operating Manager, their affiliates and PIMCO Clients (including the formation of, and capital raising for, PIMCO Clients) and their respective acquisition, due diligence, holding, maintenance, financing, restructuring and disposition of investments, including, without limitation, mergers and acquisitions, financing and accounting, legal, tax and operational support and risk, litigation and regulatory management and compliance. The performance of such functions by PIMCO employees could be in addition to or as an alternative to the outsourcing of any such services to third party Service Providers at market rates, including entities and persons regularly used by PIMCO and its affiliates, PIMCO Clients and their respective potential and existing platforms.

All fees, costs and expenses incurred by PIMCO (including allocable compensation (such as salary, bonus and payroll taxes) and benefits (such as health insurance and compensation for vacation time and sick time) of such personnel or employees and other related overhead otherwise payable by PIMCO in connection with their employment, such as rent, property taxes and utilities allocable to workspaces) in connection with services performed by personnel or employees of the Operating Manager or their affiliates that constitute services for or in respect of the Company, its subsidiaries and its existing and potential Portfolio Assets, are allocable to and borne by the Company. Without prejudice to the above, in relation to the Operating Manager, the overhead allocation could also specifically include fees, costs and/or expenses relating to services connected to the valuation function, the risk management function and the finance function (as well as the supervision and oversight of the central administration function). Such allocations to the Company will be based on any of the following methodologies (or any combination thereof), among others: (i) requiring personnel to periodically allocate their historical time spent with respect to the Company, other PIMCO Clients or the Operating Manager, approximating the proportion of certain personnel's time spent with respect to the Company (which is anticipated to be tracked on a regular, but not necessarily weekly or biweekly or similar basis), and, in each case, either allocating their compensation and allocable overhead based on such approximations of time spent, or charging such approximations of time spent at market rates, (ii) the assessment of an overall dollar amount (based on a fixed fee or percentage of AUM) that the Operating Manager determines in good faith represents a fair recoupment of expenses and a market rate for such services or (iii) any other methodology determined by the Operating Manager in good faith to be appropriate and practicable under the circumstances. Such methodologies take into account an employee's aggregate compensation without any deduction for compensation allocable to vacation time, sick time, weekend time, break time, overnight hours, time spent in training or other administrative tasks or any other hours during a year when an employee is not working on PIMCO or PIMCO Client matters. This means, for example, that allocable compensation and benefits attributable to an employee that is on vacation for one week out of a month will still be based on the full amount of compensation paid to the employee for such month, without any deduction for the vacation week.

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The methodology described above utilized for one personnel group could be different from the methodology utilized by another personnel group, and different methodologies may be utilized, including within a single personnel group, at different times or in determining different types of allocations (such as allocations among PIMCO Clients, on the one hand, and allocations as between PIMCO Clients and PIMCO affiliates, on the other hand). Determining such charges based on approximate allocations, rather than time recorded on an hourly or similar basis (which will not be undertaken), could result in the Company being charged a different amount (including relative to another PIMCO Client), which could be higher or lower, than would be the case under a different methodology. Any methodology (including the choice thereof), as well as the application of any approximations it entails, involves inherent conflicts between the interests of the Company, on the one hand, and any other PIMCO Client or PIMCO affiliate to which all or a portion of the relevant personnel's time would otherwise be charged, on the other hand, and could result in incurrence of greater expenses by the Company and its subsidiaries and potential and existing Portfolio Assets than would be the case if such services were provided by third parties at market rates. Further, there could be PIMCO Clients whose governing documents restrict or preclude the allocation of any of the foregoing amounts to such PIMCO Clients, in which case such PIMCO Clients could bear a lesser amount of such expenses relative to the Company or any other PIMCO Client or not bear any such expenses at all.

#### Valuations of the Company's assets are estimates of fair value and may not necessarily correspond to realizable value.
Within the parameters of the Company's valuation policies and procedures, the valuation methodologies used to value the Company's instruments involve subjective judgments and projections and that ultimately may not materialize. Ultimate realization of the value of an instrument depends to a great extent on economic, market and other conditions beyond the Company's control and the control of the Operating Manager. Rapidly changing market conditions or material events may not be immediately reflected in the Company's NAV.

Among the Company's important features are the provisions relating to the purchase and repurchase of Shares. The valuation of Shares upon purchase (including any reinvestment of cash distributions in additional Shares), the amount payable to investors upon repurchase and certain other valuations are generally based upon the Company's NAV per Share as of the last calendar day of the immediately preceding calendar quarter. The Company relies on the Operating Manager and its affiliates for valuation of the Company's assets and liabilities.

The values of the Company's assets are established in accordance with the Company's valuation policies and procedures approved by the Board. The valuation policies and procedures can be modified by the Board. The Company primarily holds and will continue to primarily hold Portfolio Assets and other assets that do not have readily assessable market values. The Operating Manager determines the estimated values of the Company's Portfolio Assets and the Company uses the estimated values provided as well as inputs from other sources in computing the Company's monthly NAV per Share.

The monthly valuations performed by the Operating Manager may vary from similar valuations performed by any independent third parties for similar types of assets. The valuation of illiquid assets is inherently subjective and subject to increased risk that the information utilized to value such assets or to create the pricing models may be inaccurate or subject to other error. In addition, valuations rely on a variety of assumptions, including assumptions about projected cash flows for the remaining holding periods for the assets, market conditions at the time of such valuations and/or any anticipated disposition of the assets, legal and contractual restrictions on transfers that may limit liquidity, and any transaction costs related to, and the timing and manner of, any anticipated disposition of the assets, all of which may materially differ from the assumptions and circumstances on which the valuations are based. The value of the Company's assets may also be affected by any changes in tax rates, accounting standards, policies or practices as well as general economic, political, regulatory and market conditions, global equity market conditions, changes in credit markets and interest rates, foreign exchange rates, commodity prices, natural or man-made disasters or catastrophes and the actual operations of the Portfolio Assets, which are not predictable and can have a material impact on the reliability and accuracy of such valuations. Shareholders that redeem will not benefit from any such changes after their redemption, and conversely, Shareholders that do not redeem may be burdened by the impact of any such changes, including with respect to the impact of any such changes on the portion of any asset attributable to

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redeemed Shareholders. As such, the carrying value of an asset may not reflect the price at which the asset could be sold in the market, since market prices of assets can only be determined by negotiation between a willing buyer and seller, and the difference between carrying value and the ultimate sales price could be material. Further, any volatility smoothing biases in the Company's valuation process, generally, may lower the volatility of the Company's NAV and cause the Company's NAV to not accurately reflect the actual value of Portfolio Assets. Accordingly, such values may not accurately reflect the actual market values of the assets, and, thus, Shareholders will likely make decisions as to whether to purchase Shares or submit Shares for repurchase without complete and accurate valuation information.

Determining the impact of these factors on the valuation of Portfolio Assets involves a significant degree of judgment. Because valuations, and in particular valuations of assets for which market quotations are not readily available, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, the Operating Manager's fair value determinations may differ materially from the values that would have resulted if a ready market had existed.

During periods of market uncertainty and volatility, accurate valuations may be even more difficult to obtain. This is particularly true during periods of low transaction volume because there are fewer market transactions that can be considered in the context of a valuation. Changes in credit markets can also impact valuations and may have offsetting results when using discounted cash flow analysis for Portfolio Assets that do not have readily observable market prices. For example, if applicable interest rates rise, then the assumed cost of capital would be expected to increase under the discounted cash flow analysis, and this effect would negatively impact their valuations if not offset by other factors. Rising U.S. interest rates may also negatively impact certain foreign currencies that depend on foreign capital flows.

In addition, Shareholders would be adversely affected by higher Management Fees and by higher Performance Fees if the Company's NAV is overstated. Due to a wide variety of market factors and the nature of certain instruments to be held by the Company, there is no guarantee that the value determined by the Company will represent the value that will be realized by the Company on a realization of the instruments or that would, in fact, be realized upon an immediate disposition of the instruments.

The Operating Manager may benefit by the Company retaining ownership of the Company's instruments at times when the Shareholders may be better served by the sale or disposition of the Company's instruments in order to avoid a reduction in the Company's NAV. If the Company's NAV is calculated in a way that is not reflective of its actual NAV, then the purchase price of the Shares or the price paid for the repurchase of the Shares on a given date may not accurately reflect the value of the Company's holdings, and Shares may be worth less than the purchase price or more than the repurchase price.

Further, in connection with each subscription or repurchase of Shares, a Shareholder will receive a number of Shares or cash, respectively, at a price that reflects the Company's most recently calculated NAV (which generally will be the Company's NAV as determined as of the last calendar day of the immediately preceding (i) calendar month for subscriptions and (ii) calendar quarter for repurchases). There is no requirement, and it is not anticipated, that a new valuation will be made in connection with any such purchase and related issuance of Shares and, as a result, the price paid for Shares may not accurately reflect the current NAV at the time of issuance.

Any discrepancy between the NAV of the Company used in connection with the repurchase or issuance and the actual NAV of the Company as of the date of such repurchase or issuance may have an adverse effect on the Shareholder from whom Shares are repurchased, the Shareholder to whom Shares are issued or the Company as a whole, as applicable. Any such discrepancy may also lead the Company to dispose of more instruments than necessary, and potentially at less advantageous prices. By way of example, in the event the Company were to liquidate instruments in order to satisfy repurchase requests based on a determination of NAV of the Company used in connection with the repurchase that in retrospect turns out to be higher than the actual NAV of the Company as of the repurchase date, a Shareholder requesting the repurchase of a certain percentage of its Shares may receive a greater amount of repurchase proceeds than the repurchase proceeds it should have received in respect of such repurchase, thereby adversely affecting remaining Shareholders and the ability of the Company to employ the excess amounts paid out for the instruments of the Company or other cash needs. If the Company were to borrow amounts to satisfy such repurchase request, the amounts borrowed might be higher than the amounts the Company would have borrowed had the correct or lower NAV been used to calculate repurchase proceeds, and such higher borrowing may have an adverse effect on the remaining Shareholders. In addition, if a new purchase of Shares by a new Shareholder is made based on such erroneously high or temporarily elevated NAV, the number of Shares issued to such new Shareholder will be lower than the number of Shares it should have received.

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#### Monthly NAV calculations are not governed by governmental or independent securities, financial or accounting rules or standards.
The methods the Company uses to calculate its monthly NAV, which is the basis for the offering price for the Shares, the investment value published in customer account statements for the Shareholders, and amounts paid to Shareholders under the Repurchase Plan, are not prescribed by the rules of the SEC or any other regulatory agency. Further, there are no accounting rules or standards that prescribe which components should be used in calculating monthly NAV, and, while the Company may consult with its auditors or other independent valuation agents when valuing certain of its Portfolio Assets or other, the Company's monthly NAV is not audited by its independent registered public accounting firm. The components and methodology used in calculating the Company's monthly NAV may differ from those used by other companies now or in the future. The Company's monthly NAV should not be viewed as a measure of the Company's historical or future financial condition or performance. Errors may occur in calculating the Company's monthly NAV, which could impact the price at which the Company sells and repurchases its Shares. The Company and the Operating Manager cannot provide assurance that it will be able to choose, make or realize returns in any particular Portfolio Assets. There can be no assurance that the Company will be able to generate returns for the Shareholders or that the returns will be commensurate with the risks of owning the type of Portfolio Assets described herein. There can be no assurance that any Shareholder will receive any distribution from the Company or liquid assets with respect to the repurchase of its Shares. Accordingly, a purchase of the Company's Shares should only be considered by persons who can afford a loss of their entire investment.

***Shareholders do not have control or influence over Company policies, operations or acquisitions or the decision to conduct Share repurchases or the selection of Service Providers. Further, under certain circumstances, the Company may amend the LLC Agreement without Shareholder approval and Shareholders are not entitled to vote for the election of directors.***

Shareholders are not able to make decisions about acquisitions or any other decisions concerning the management of the Company. The management, financing and disposition policies of the Company are determined by the Board and implemented with the assistance of the Operating Manager and the Board. These policies may be changed from time to time at the discretion of the Board without a vote of the Shareholders, although the Board has no present intention to make any such changes. Any such changes could be detrimental to the value of the Company. Shareholders have no right to participate in the day-to-day operation of the Company, including, acquisition and disposition decisions and decisions regarding the selection of Service Providers (including Affiliated Service Providers) and the operation and financing of its acquisitions. The Shareholders also have no opportunity to evaluate any economic, financial or other information that is utilized by the Operating Manager in the performance of its obligations under the Operating Agreement, nor will Shareholders receive all financial information with respect to any acquisition that is available to the Company or the Operating Manager. Shareholders do not have an opportunity to evaluate for themselves or to approve any Portfolio Assets. Shareholders therefore rely on the ability of the Operating Manager to select Portfolio Assets to be acquired by the Company. Finally, as further discussed in *"—Potential Conflicts of Interest; Other Activities of the Operating Manager,"* the Board, with the assistance of the Operating Manager, will select the Service Providers (which include Affiliated Service Providers) and determine the compensation of such providers without the review by or consent or approval of the Shareholders or any other independent party, except as may otherwise be provided in the LLC Agreement. The Shareholders must therefore rely on the ability of the Board and the Company's officers, with the assistance of the Operating Manager, to select and compensate Service Providers in a manner beneficial to the Company and to make and manage acquisitions and dispose of such acquisitions. The success of the Company depends on the ability of the Company's management, with the assistance of the Operating Manager, to identify suitable acquisitions, to negotiate and arrange the closing of appropriate transactions and to arrange the timely disposition of acquisitions. The Operating Manager may be unable to find a sufficient number of suitable attractive opportunities to meet the Company's businesses strategy. No person should purchase a Share unless such person is willing to entrust all aspects of the management of the Company to the Board and the Operating Manager.

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The Board may cause the Company to repurchase Shares from time to time or assign this right to PIMCO or its affiliates. The Board may use its own discretion, free of fiduciary duty restrictions, in determining whether to cause the Company to exercise this right. As a result, Shareholders may have their Shares repurchased at an undesirable time or price. For additional information, see the LLC Agreement which has been filed with the SEC.

Further, the LLC Agreement can be amended from time to time generally by the Board with the consent of the Members holding a majority of the V Shares, which are currently and are expected going forward to be held solely by PIMCO GP LXXXII, LLC and/or its affiliates, and without the consent of the Shareholders as set forth in the LLC Agreement. The LLC Agreement sets forth certain other procedures for its amendment, including provisions allowing the amendment of the LLC Agreement without the consent of the Shareholders in certain circumstances. In addition, lenders to the Company will, under the terms of financing arrangements put in place with them, require the Company to seek lender approval of certain amendments to the LLC Agreement prior to the Board adopting any such amendment. The Company will file a Form 8-K with the SEC disclosing any amendments made to its LLC Agreement.

The Shares do not have voting power, which is instead vested exclusively in the Members. PIMCO GP LXXXII, LLC and/or its affiliates own and are expected to continue to own all of the Company's outstanding V Shares and have the sole ability to elect directors of the Company. Shareholders have no opportunity to control either larger strategic goals or the day-to-day operations, including acquisition and disposition decisions, of the Company. Shareholders must rely entirely on the Board, the Operating Manager, PIMCO and their affiliates to conduct and manage the affairs of the Company and its Portfolio Assets (including the Asset-Backed Instruments).

#### Prospective Shareholders will not know the NAV per Share of their investment until after the investment has been accepted.
Prospective Shareholders will not know the NAV per Share of their investment until after their subscription has been accepted. Prospective Shareholders will be required to subscribe for a dollar amount, and the number of Shares that such Shareholder receives will subsequently be determined based on our NAV per Share as of the end of the month immediately before such prospective Shareholder's subscription is accepted by the Company (e.g., a subscription for Shares accepted by the Company on September 1 of a calendar year will be based upon the Company's NAV as of August 31 of that year, which NAV will generally not be available until after September 1 of that year). Prospective Shareholders will learn of such NAV and the corresponding number of Shares represented by their subscription after the Company publishes the NAV per Share.

***If the Company's series limited liability company structure is not respected, then Shareholders may have to share any liabilities of the Company and the other Series with all Shareholders and not just those who hold Shares of the same Series as them.***

The Company is structured as a Delaware limited liability company that issues separate types of Shares for each Series. Each Series is a separate series under Delaware law and not a separate legal entity. Under the LLC Act, if certain conditions (as set forth in Sections 18-215(b) or 18-218(c) of the LLC Act, depending on whether such series is established as a "protected series" under Section 18-215(b) of the LLC Act or a "registered Series" under Section 18-218 of the LLC Act) are met, the debts, liabilities, obligations and expenses of one Series are segregated from the debts, liabilities, obligations and expenses of the other Series and the assets of one Series are not available to satisfy the debts, liabilities, obligations or expenses of the other Series. Although this limitation of liability is recognized by Delaware, there is no guarantee that if challenged in the courts of another U.S. state or a foreign jurisdiction or in a U.S. federal court, such courts will uphold this statutory segregation of liabilities. If the Company's series limited liability company structure is not respected, then the assets of a Series may be subject to the liabilities of another Series, of the Company, generally, and not just of that particular Series. Furthermore, while the Company intends to maintain separate and distinct records for each Series and account for them separately and otherwise meet the requirements of the LLC Act, it is possible a court could conclude that the methods used did not satisfy Section 18-215(b) or Section 18-218(c) of the LLC Act, as applicable, and thus potentially expose the assets of a Series to the liabilities of another Series or of the Company generally. The consequence of this is that Shareholders may have to bear higher than anticipated expenses which would adversely affect the value of their Shares of the applicable Series or the likelihood of any distributions being made by a particular Series to its Shareholders, and the Series could be treated as a single entity for U.S. federal tax purposes with different consequences to Shareholders. The state tax treatment of a series limited liability company depends on the laws of each state, and it is possible that a particular

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state may treat Series I and Series II as a single entity for state tax purposes or may treat Series I or Series II as separate entities but classified differently than the IRS does for U.S. federal income tax purposes. In addition, the Company is not aware of any court case that has tested the limitations on inter-series liability provided by Section 18-215(b) or Section 18-218 of the LLC Act in federal bankruptcy courts and it is possible that a bankruptcy court could determine that the assets of one Series should be applied to meet the liabilities of the other Series or the liabilities of the Company generally where the assets of such other Series or of the Company generally are insufficient to meet its liabilities.

***While the Company believes neither Series nor the Company is or will be an investment company under the Investment Company Act, the Company cannot guarantee it will always be able to maintain its intended status under the Investment Company Act.***

The Company seeks to conduct its operations directly and through wholly or majority-owned subsidiaries in a manner such that the Company and each of its Series do not fall within, or are excluded from, the definition of an "investment company" under the Investment Company Act.

The Investment Company Act contains two relevant definitions for the term "investment company." Under Section 3(a)(1)(A) of the Investment Company Act, a company is deemed to be an "investment company" if it is, or holds itself out as being, engaged primarily, or proposes to engage primarily, in the business of investing, reinvesting, or trading in securities. The Company refers to this as the "Subjective Test." Under Section 3(a)(1)(C) of the Investment Company Act, a company is deemed to be an "investment company" if it is engaged, or proposes to engage, in the business of investing, reinvesting, owning, holding or trading in securities, and owns or proposes to acquire "investment securities" having a value exceeding 40% of the value of its total assets (exclusive of U.S. Government securities and cash items) on an unconsolidated basis. The Company refers to this as the "Objective Test." Excluded from the term "investment securities," as that term is used under the Objective Test, are U.S. Government securities and securities issued by majority-owned subsidiaries that are not themselves investment companies and are not relying on the exception from the definition of "investment company" set forth in Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act.

The Company does not believe either Series or the Company is or will become an "investment company" under either definition. The Company does not engage primarily or hold itself out as proposing to become engaged primarily in the business of investing, reinvesting, or trading in securities. Each Series is a holding company that will primarily engage in the business of their jointly held subsidiaries that are primarily engaged in non-investment company businesses.

The Company believes neither Series nor the Company is an investment company under the Objective Test because more than 60% of the value of each Series' assets, exclusive of cash and government securities, will be assets that are not "investment securities," as that term is defined and used under the Investment Company Act. The Company expects most of its wholly owned and majority-owned subsidiaries to primarily be outside the definitions of "investment company" found under the Subjective Test and the Objective Test, or as further explained below, to rely on an exception from the definition of "investment company" other than the exceptions under Section 3(c)(1) and Section 3(c)(7) of the Investment Company Act. Consequently, the Series' interests in these subsidiaries (which are expected to constitute most of the Company's assets collectively) generally will not constitute "investment securities." Accordingly, the Company believes it is not and will continue to not be considered an investment company under the Objective Test.

Some of the Company's majority-owned subsidiaries rely on the exceptions from the definition of investment company under Section 3(c)(5)(A) or (B) of the Investment Company Act, which except from the definition of investment company, respectively, (i) any person who is primarily engaged in the business of purchasing or otherwise acquiring notes, drafts, acceptances, open accounts receivable and other obligations representing part or all of the sales price of merchandise, insurance and services; or (ii) any person that is primarily engaged in the business of making loans to manufacturers, wholesalers and retailers of, and to prospective purchasers of, specified merchandise, insurance and services. The SEC staff has issued no-action letters interpreting Section 3(c)(5)(A) and (B) pursuant to which it has taken the position that these exceptions are available to a company with at least 55% of its assets consisting of eligible loans and receivables of the type specified in Section 3(c)(5)(A) and (B). The SEC staff has indicated that the single most important factor in determining whether an issuer may rely on Section 3(c)(5)(A) and/or Section 3(c)(5)(B) is the strength of the connection between the obligations held by the issuer and the specific merchandise,

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insurance, services purchased and sold. In that connection, the SEC staﬀ has taken the position that loans and receivables for the sale of a broad array of merchandise, insurance and services are within the scope of Section 3(c)(5)(A) and/or (B), including (i) loans and notes evidencing loans to project companies or managing members of project companies for generating, transmitting, and distributing energy and related services, (ii) loans to finance the purchase of electric generating transmission, and distribution facilities, equipment, and machinery, (iii) loans to finance public works projects, and (iv) student loans to finance the purchase of education services. Notably, the SEC staﬀ has refused to grant no-action relief when a company's loans have not related to the sale of specific merchandise, insurance or services. For example, the staff has refused to grant no-action relief to entities holding general commercial loans. In recognition of the fact that eligible loans or notes evidencing loans under Section 3(c)(5)(A) and/or (B) must be used for purchasing specific merchandise or services, the Company's subsidiaries that intend to rely on Section 3(c)(5)(A) and/or (B) will (i) not issue redeemable securities and (ii) will be primarily engaged in a business of the type specified in the Section. Accordingly, the Company expects that at least 55% of the assets of such Company subsidiaries will consist of loans and notes evidencing loans in which the use of proceeds is specifically tied to the financing of, among other things, consumer products and hard assets. However, no assurance can be given that the SEC or the SEC staff will concur with this position. In addition, the SEC or the SEC staff may, in the future, issue further guidance that may require the Company to reclassify its assets for purposes of qualifying with this exclusion. A change in the value of the Company's assets could cause it or one or more of the Company's wholly or majority-owned subsidiaries, including those relying on Section 3(c)(5)(A) or (B), to fall within the definition of "investment company," and negatively affect the Company's ability to not fall within the definition of "investment company" under the Investment Company Act.

Certain of the Company's subsidiaries rely on the exception from the definition of investment company under Section 3(c)(5)(C) of the Investment Company Act, which excepts from the definition of investment company any entity primarily engaged in the business of purchasing or otherwise acquiring mortgages and other liens on and interests in real estate. The SEC staff has taken the position that this exception, in addition to prohibiting the issuance of certain types of securities, generally requires that at least 55% of an entity's assets must be comprised of mortgages and other liens on and interests in real estate, also known as "qualifying assets," and at least another 25% of the entity's assets must be comprised of additional qualifying assets or a broader category of assets that the Company refers to as "real estate-related assets" under the Investment Company Act (and no more than 20% of the entity's assets may be comprised of miscellaneous assets). "Qualifying assets" for this purpose include senior loans, certain B-Notes and certain mezzanine loans that satisfy various conditions as set forth in SEC staff no-action letters and other guidance, and other assets that the SEC staff in various no-action letters and other guidance has determined are the functional equivalent of senior loans for the purposes of the Investment Company Act. The Company treats as real estate-related assets B-Notes and mezzanine loans that do not satisfy the conditions set forth in the relevant SEC staff no-action letters and other guidance, and debt and equity securities of companies primarily engaged in real estate businesses. Unless a relevant SEC staff no-action letter or other guidance applies, the Company expects to treat preferred equity interests as real estate-related assets. These no-action positions are based on specific factual situations that may be substantially different from the factual situations the Company and its subsidiaries may face, and a number of these no-action positions were issued more than twenty years ago. There may be no guidance from the SEC staff that applies directly to the Company's factual situations and as a result the Company may have to apply SEC staff guidance that relates to other factual situations by analogy. No assurance can be given that the SEC or its staff will concur with the Company's classification of its assets. In addition, the SEC or its staff may, in the future, issue further guidance that may require the Company to re-classify its assets for purposes of the Investment Company Act, including for purposes of the Company's subsidiaries' compliance with the exclusion provided in Section 3(c)(5)(C) of the Investment Company Act.

Certain of the Company's subsidiaries may rely on the exception from the definition of investment company under Section 3(c)(3) of the Investment Company Act, which excepts from the definition of investment company any domestic entity regulated as an insurance company. Certain other of the Company's subsidiaries may rely on the exception under Rule 3a-6 under the Investment Company Act for any company organized and regulated as a foreign insurance company which is engaged primarily and predominantly in the reinsurance of risks on insurance agreements. With respect to foreign insurance companies, the law in this area is subjective and there is a lack of guidance as to the meaning of "primarily and predominantly" under the relevant exception to the Investment Company Act. For example, there is no standard for the amount of premiums that need to be written relative to the level of a company's capital in order to qualify for the exception. There is no guarantee that the Company will be able to ensure that any foreign insurance or reinsurance subsidiaries maintain an exclusion from registration under the Investment Company Act and any adjustment in the Company's strategy or assets could have a material adverse effect on the Company.

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Although the Company expects to operate in a manner such that it does not meet the definition of an investment company under Section 3(a)(1), the Company may also seek to rely on Section 3(c)(6) of the Investment Company Act, which excepts from the definition of investment company any holding company primarily engaged, directly or through majority-owned subsidiaries, in one or more businesses described in Sections 3(c)(3), 3(c)(4), and 3(c)(5) (from which not less than 25% of the holding company's gross income during its last fiscal year was derived) together with an additional business or businesses other than investing, reinvesting, owning, holding, or trading in securities. The SEC has indicated that Section 3(c)(6) requires a company to hold at least 55% of its assets in, and derive 55% of its income from, subsidiaries engaged in businesses described in Sections 3(c)(3), 3(c)(4), and 3(c)(5). The staff of the SEC has issued little additional interpretive guidance with respect to Section 3(c)(6). To the extent that the Company sought to rely on Section 3(c)(6) as opposed to Section 3(a)(1), the Company would monitor the assets and income of its subsidiaries that rely on Sections 3(c)(5)(A), 3(c)(5)(B), or 3(c)(5)(C) to determine compliance with the Section 3(c)(6) exclusion. In order to rely on Section 3(c)(6), the Company would need to ensure that it was primarily engaged in businesses described in Sections 3(c)(3), 3(c)(4), and 3(c)(5), which would potentially limit the ability of the Company to pursue other business opportunities that fall outside of Sections 3(c)(3), 3(c)(4), and 3(c)(5) of the Investment Company Act.

Notwithstanding the Company's intentions and expected efforts, there can be no assurance that each Series and the Company will avoid being deemed an investment company under the Investment Company Act.

***The Company may take actions or forgo potential opportunities to ensure that it is not deemed an investment company and there is no guarantee that the Company will be able to adjust its assets in the manner required to maintain an exclusion from registration under the Investment Company Act and any adjustment in the Company's strategy or assets could have a material adverse effect on the Company.***

As stated above, the Company seeks to continue to conduct its operations so that neither Series nor the Company would fall within the definition of an investment company under the Investment Company Act. When determining whether to acquire any additional assets, the Company analyzes both (i) the status of the potential asset under the Investment Company Act and (ii) the potential effect of such asset on the status of the Company, Series I and Series II. Additionally, the Company analyzes the Investment Company Act status of its wholly owned and majority-owned subsidiaries on an ongoing basis to make sure that the Company satisfies the Objective Test.

To ensure that neither Series nor the Company is deemed to be an investment company, the Company may be required to materially restrict or limit the scope of its operations or plans. A change in the value of the Company's assets could cause either Series to fall within the definition of "investment company" inadvertently, and negatively affect the Company's ability to avoid being defined as an investment company under the Investment Company Act. As described above, in such a situation the Company would seek to rely on the exception from the definition of investment company set out in Section 3(c)(6) of the Investment Company Act.

To avoid being deemed an investment company under the Investment Company Act, the Company may be unable to sell assets it would otherwise want to sell, or the Company may need to sell assets it would otherwise wish to retain. In addition, the Company may have to forgo opportunities to acquire interests in companies that it would otherwise want to acquire and that would otherwise be additive to the Company's business strategy (particularly if the Company were to rely on Section 3(c)(6) of the Investment Company Act).

If either Series or the Company became defined as an investment company that is required to register but failed to do so, such Series would be prohibited from engaging in any business, and criminal and civil actions could be brought against that Series or the Company.

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#### The Company may have control positions in certain portfolio companies, which may expose the Company to additional liabilities and other legal risks and burdens.
The Company may have controlling interests in certain companies (including any Platform Companies) (because of its equity ownership, representation on the board of directors and/or contractual rights), either on its own or, in certain cases, with another financial partner or vehicle. The exercise of control over a company may impose additional risks of liability for environmental damage, product defects, failure to supervise management, pension and other fringe benefits, violation of governmental regulations (including securities laws, anticorruption laws, anti-money laundering, and economic sanctions) or other types of related liability in which the limited liability characteristics of the Company may be ignored, particularly when the such company operates in a regulated industry. If these liabilities were to arise, the Company might suffer a significant loss. In addition, it is possible that employees of the Operating Manager will serve as directors of certain of such companies, including public companies, and as such, will have duties to persons other than the Company.

To the extent that the Company owns a controlling stake in or is deemed to be an affiliate of a particular company, it may also be subject to certain additional bankruptcy or securities law risks and restrictions that could affect the liquidity of the Company's interest, the Company's potential liability and the Company's ability to liquidate its interest without materially and adversely impacting the price thereof, including control person liability under applicable securities laws, insider trading restrictions, the affiliate sale restrictions of Rule 144 of the Securities Act and the disclosure requirements of Sections 13 and 16 of the Exchange Act. Further, to the extent that affiliates of the Company or the Operating Manager are subject to such restrictions, the Company, by virtue of its affiliation with such entities, may be similarly restricted, regardless of whether the Company stands to benefit from such affiliate's ownership.

If the Company, alone, in some cases together with other PIMCO Clients or as part of a group acting together for certain purposes, becomes the beneficial owner of more than 10% of a registered class of equity securities of a U.S. public company, or an employee of PIMCO or its affiliates serves on the board of directors of such a company or otherwise seeks to or has the effect of controlling the company, the Company likely would be subject to certain additional reporting requirements under Sections 13 and 16 of the Exchange Act and to liability for short-swing profits under Section 16 of the Exchange Act, which may have the effect of limiting liquidity of the Company's interest and/or preventing the Company from acquiring additional securities. Furthermore, the Company may also be subject to similar reporting requirements and other limitations in non-U.S. jurisdictions where it holds significant positions in companies in such jurisdictions.

The exercise of control over a company, depending upon the amount and type of securities owned by the Company, contractual arrangements between the company and the Company, employees of the Company and or the Operating Manager or its affiliates serving as directors or officers of a company, and other relevant factual circumstances, could result in bankruptcy law risks, including an extension to one year of the general 90-day bankruptcy preference period with respect to payments made to the Company. See *"—The Company's instruments are subject to fraudulent conveyance and preference considerations and thus involve heightened risk of loss*" below. The exercise of control over a company and other relevant factual circumstances may also provide grounds for challenges to the priority and enforceability of Portfolio Assets or other claims the Company may have against the company, including under doctrines of debt recharacterization and equitable subordination, if the company is subject to a bankruptcy case or other insolvency proceeding. See *"—The Company may be subject to claims under lender liability, equitable subordination and debt recharacterization theories*" below.

#### Risks Related to Owning and Managing a Platform of Underlying Asset-Backed Instruments

#### The Company faces heightened risks relating to owning and managing Asset-Backed Instruments.
All acquisitions involve risks, including the risk that the entire amount deployed may be lost. No guarantee or representation is made that the Company's objectives will be achieved. The Company is subject to the risks involved with indirectly owning and managing asset-based finance instruments-related assets. See "—*Risks Related to Owning and Managing a Platform of Underlying Asset-Backed Instruments.*" In addition, the Company may utilize various techniques, such as leverage and derivatives (including swaps), which can in certain circumstances increase the adverse impact to which the Company's assets may be subject. See "—*The availability of capital is generally a* 

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*function of capital market conditions that are beyond the control of the Company or any Asset-Backed Instrument and this may increase the exposure of such Asset-Backed Instrument to adverse economic factors or unfavorable financing terms, which may subject the Company to risks or adversely affect its business*" below. In the event of the insolvency of the issuer of securities directly or indirectly owned by the Company, or a related event such as a bail-in under which creditors of the issuer (including bondholders) are required to accept a write-off of amounts owed, some or all of the amount deployed is likely to be lost.

***The Company's lending platform manages a significant amount of asset-based securities in a range of asset classes that subject them to further risks, including, among others, credit risk, liquidity risk, interest rate and other market risk, operational risk, structural risk, sponsor risk, monoline wrapper risk and other legal risk.***

The characteristics of ABS differ from traditional debt securities. Among the major differences are that interest and principal payments are made more frequently, usually monthly, and that the principal may be prepaid at any time because the underlying loans or other assets generally may be prepaid at any time. ABS are not secured by an interest in the related collateral. Credit card receivables, for example, are generally unsecured and the debtors are entitled to the protection of a number of state and federal consumer loan laws, many of which give such debtors the right to set off certain amounts owed on the credit cards, thereby reducing the balance due. Most issuers of ABS backed by automobile receivables permit the servicers to retain possession of the underlying obligations. If the servicer were to sell these obligations to another party, there is a risk that the purchaser would acquire an interest superior to that of the holders of the related ABS. In addition, because of the large number of vehicles involved in a typical issuance and technical requirements under state laws, the trustee for the holders of the ABS may not have a proper security interest in all of the obligations backing such ABS. Therefore, there is a possibility that recoveries on repossessed collateral may not, in some cases, be available to support payments on these securities. The risk of acquiring ABS is ultimately dependent upon payment of underling loans by the debtor.

The collateral supporting ABS is of shorter maturity than certain other types of loans and is less likely to experience substantial prepayments. ABS are often backed by pools of any variety of assets, including, for example, real property leases, mobile home loans and aircraft leases, which represent the obligations of a number of different parties and use credit enhancement techniques such as letters of credit, guarantees or preference rights. The value of an ABS is affected by changes in the market's perception of the asset backing the security and the creditworthiness of the servicing agent for the loan pool, the originator of the loans or the financial institution providing any credit enhancement, as well as by the expiration or removal of any credit enhancement.

In addition, exposure to subordinated ABS involve greater credit risk of default than the senior classes of the issue or series. Default risks may be further pronounced in the case of ABS secured by, or evidencing an interest in, a relatively small or less diverse pool of underlying loans. Certain subordinated securities absorb all losses from default before any other class of securities is at risk, particularly if such securities have been issued with little or no credit enhancement equity. Such securities, therefore, possess some of the attributes typically associated with equity holdings.

There may also be no established, liquid secondary market for many of the ABS the Company may purchase. The lack of such an established, liquid secondary market could have an adverse effect on the market value of such ABS and the Company's ability to sell them. Further, ABS may be subject to certain transfer restrictions that may further restrict liquidity. Finally, the Company may engage in enforcement actions, litigation and settlement discussions that may expose the Company to additional expenses, legal proceedings and restrict its trading activities. There is no assurance that any of these enforcement actions or other activist efforts by the Company will prove successful.

***The Company faces heightened risk because its strategy concentrates its assets in Asset-Backed Instruments. Because a significant amount of the Company's aggregate capital could be invested in a single Asset-Backed Instrument, a loss with respect to such Asset-Backed Instrument could have a significant adverse impact on the Company's capital.***

While diversification is an objective of the Company's business strategy, there is no assurance as to the degree of diversification that will actually be achieved in the Company's Portfolio Assets. Because a significant amount of the Company's aggregate capital may be invested in a single Asset-Backed Instrument

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(and also a significant amount in connection with a financing transaction (including loan guarantees) intended to be repaid within 12 months or less entered into between the Company and an Asset-Backed Instrument on an interim basis pending the expected refinancing, satisfaction or sale of such financing to another person or entity in connection with, or in order to facilitate, the consummation of the Company's acquisition of such Asset-Backed Instrument or with cost overruns) a loss with respect to such Asset-Backed Instrument could have a significant adverse impact on the Company's capital. To the extent that the Company acquires more than one Asset-Backed Instrument partnering with a single operational management team or other acquisition of an Asset-Backed Instrument consisting of multiple assets or operating businesses, a series of related transactions, Joint Ventures or similar arrangements in one or more Asset-Backed Instruments which is both (i) designated as a Programmatic Acquisition for purposes of the LLC Agreement by the Operating Manager, either at the time of the applicable acquisition or thereafter in connection with a subsequent acquisition that will comprise part of such Programmatic Acquisition; and (ii) made in connection with a programmatic Joint Venture, platform Joint Venture, series Joint Venture, asset acquisition/build up strategy and/or other operating platform, arrangement, company or business established in connection with developing, sourcing or operating opportunities. For the avoidance of doubt, Programmatic Acquisitions may include: (a) multiple ventures or platforms investing in the same asset-backed finance industry segment, (b) portfolios of Asset-Backed Instruments that are related or in the same asset-backed finance industry segment, (c) multiple ventures or platforms with the same operating or developer partner investing in different asset-backed finance industry segments and (d) portfolios of Asset-Backed Instruments which are part of the same investment strategy, such concentration will be more pronounced.

Because the Operating Manager has developed expertise in certain core industries, the Company's assets could be concentrated in one or more of such industries. Moreover, the Company's assets and the acquisitions are and will continue to be concentrated within the asset-backed finance sector. Concentration of acquisitions in an industry, sector, security or geographic region make the Company's holdings more susceptible to fluctuations in value resulting from adverse economic and business conditions in those industries, sectors, securities or geographic regions. The risk of loss on the Company's assets is likely to be increased as a result of such concentration. If the Company co-invests with private equity, credit or real asset funds, including other PIMCO Clients, a Shareholder invested in such other vehicle could have exposure to an Asset-Backed Instrument through more than one vehicle. Further, the Operating Manager may determine that there are exceptions to the aforementioned limitations (i) for payments made under, or required by, any non-recourse carve out guarantees, completion guarantees, equity commitment letters, environmental indemnities, hedging guarantees or guarantees made in order to facilitate or finance acquisitions, including in respect of customary key principal, "bad acts" or other performance-related matters, or (ii) in the event the Company has procured the binding commitment of one or more persons, including other PIMCO Clients and/or Co-Investors, to acquire a portion of the Company's interest.

To the extent there is a downturn affecting a country, region or asset type in which the Company's holdings are concentrated, this could increase the risk of defaults, reduce the amount of payments the Company receives on its assets and, consequently, could have an adverse impact on the Company's financial condition and results and its ability to make distributions. It is not reasonable to expect all of the Company's assets to perform well or even return capital; accordingly, for the Company to achieve above-average returns, at least one or a few of its assets must significantly exceed performance expectations. There are no assurances that such performance returns will be achieved.

The Company will be able to make acquisitions in the most junior levels of an Asset-Backed Instrument's capital structure and, therefore, relative to other investors in the Asset-Backed Instrument, may be subject to the greatest risk of loss, including, in certain circumstances, as a result of events not related directly to the Asset-Backed Instrument itself. Further, in circumstances where the Operating Manager intends to refinance all or a portion of the capital in a future acquisition, there will be a risk that such refinancing may not be completed, which could lead to increased risk as a result of the Company having an unintended long-term interest as to a portion of the amount invested and/or reduced diversification.

The Company's holdings could include Asset-Backed Instruments based in, or companies that conduct all or a large portion of their operations in, countries outside North America and Europe, and such countries could have a short history as market economies. Loans to companies or acquisitions of assets or companies in such countries could entail a higher risk than loans to companies or acquisitions of assets or companies with operations or assets wholly or substantially within North America or Europe. Particular risks associated with assets based in, or companies that conduct all or a large portion of their operations in countries outside, North America and Europe include changes in

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exchange control regulations, political and social instability, government expropriation, imposition of unanticipated taxes, illiquid markets and limited information, high transaction costs, limited government supervision of exchanges, brokers and companies, complex or undeveloped insolvency laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.

#### The Company's Portfolio Assets may also be impacted by interest rate fluctuations which may be beyond the control of the Company.
General fluctuations in the market prices of securities and interest rates may affect the value of the assets held by the Company. Volatility and instability in the securities markets may also increase the risks inherent in the Company's assets. The ability of companies, businesses, Asset-Backed Instruments or other assets in which the Company may acquire to refinance debt securities and/or other financial instruments may depend on their ability to sell new securities and/or debt instruments in the high-yield debt or bank financing markets, which may be difficult to access at favorable rates. Interest rate changes may affect the value of a debt instrument indirectly (especially in the case of fixed-rate securities) and directly (especially in the case of instruments whose rates are adjustable). In general, rising interest rates will negatively impact the price of a fixed rate debt instrument and falling interest rates will have a positive effect on price. Adjustable rate instruments also react to interest rate changes in a similar manner although generally to a lesser degree (depending, however, on the characteristics of the reset terms, including the index chosen, frequency of reset and reset caps or floors, among other factors). Interest rate sensitivity is generally more pronounced and less predictable in instruments with uncertain payment or prepayment schedules. The Company may experience increased interest rate risk to the extent it acquires, if at all, lower-rated instruments, debt instruments with longer maturities, debt instruments paying no interest (such as zero coupon debt instruments) or debt instruments paying non-cash interest in the form of other debt instruments.

#### The Company faces risks by originating loans if then unable to sell, assign or close a transaction for such loan.
The Company's strategy may include the origination of loans, including secured and unsecured notes, senior and second lien loans, mezzanine loans and other similar instruments. From time to time, the Company may offer participations in and/or assignments or sales of loans (or interests therein) to other PIMCO Clients or sales of loans (or interests therein) to third parties, in either case that the Company has originated or purchased; *provided* that there is no assurance that the Company will complete the sale of such an instrument. See also "—*Risks Related to the Company and an Investment in the Shares*—*The Company's Portfolio Assets (including the Asset-Backed Instruments) may not achieve the Company's business objectives or generate returns for Shareholders*" and "—*The Company's business may be affected by offering Co-Investments or opportunities to provide debt financing to any person*" herein. In the event of such an offer to other PIMCO Clients, the price of the participation, assignment or sale will not be set by the Operating Manager or the Company, but rather will be established based on third-party valuations. Further, the decision by any PIMCO Client to accept or reject the offer may be made by a party independent of the Operating Manager, such as an independent third-party valuation firm or the independent directors of such PIMCO Client, if any, or an advisory or credit committee composed of individuals who are not affiliated with PIMCO. In determining the target amount to allocate to a particular loan origination, the Company may take into consideration the fact that it may sell, assign or offer participations in such acquisition to third parties as described above. If the Company is unable to sell, assign or successfully close transactions for the loans that it originates, the Company will be forced to hold its interest in such loans until such time as it can be disposed. This could result in the Company's assets being over-concentrated in certain borrowers. Loan origination presents special tax considerations for the Company and its Shareholders, including potentially generating ECI for non-U.S. Series II Shareholders that are ECI-sensitive. Series II Shareholders are expected to hold originated loans through a "blocker" vehicle taxable as a corporation for U.S. federal income tax purposes. See "—*The Company's business may be affected by offering Co-Investments or opportunities to provide debt financing to any person"* and *"*—*Certain United States Federal Income Tax Considerations.*"

***Being a control person in a company may give rise to increased risk of liability for the Company and the Operating Manager, which could adversely affect a portion of the Company's assets.***

The Company has and will continue to have controlling interests in a number of its Portfolio Assets. The fact that the Company or the Operating Manager exercises control or exerts influence (or merely has the ability to exercise control or exert influence) over an issues may give rise to risks of liability (including under various theories of parental

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liability and piercing the corporate veil doctrines) for, among other things, personal injury and/or property or environmental damage claims arising from an accident or other unforeseen event, product defects, employee benefits (including pension and other fringe benefits), failure to supervise management, violation of laws and governmental regulations (including securities laws, anti-trust laws, employment laws, insurance laws, anti-bribery (and other anti-corruption laws)) and other types of liability for which the limited liability characteristic of business ownership and the Company itself (and the limited liability structures that may be utilized by the Company in connection with its ownership of Portfolio Assets or otherwise) may be ignored or pierced, as if such limited liability characteristics or structures did not exist for purposes of the application of such laws, rules, regulations and court decisions. These risks of liability may arise pursuant to U.S. and non-U.S. laws, rules, regulations, court decisions or otherwise (including the laws, rules, regulations and court decisions that apply in jurisdictions in which an issuer or its subsidiaries are organized, headquartered or conduct business). Such liabilities may also arise to the extent that any such laws, rules, regulations or court decisions are interpreted or applied in a manner that imposes liability on all persons that stand to economically benefit (directly or indirectly) from ownership of Portfolio Assets, even if such persons do not exercise control or otherwise exert influence over such issuers (*e.g.*, Shareholders). Lawmakers, regulators and plaintiffs have recently made (and may continue to make) claims along the lines of the foregoing, some of which have been successful. If these liabilities were to arise with respect to the Company or its Portfolio Assets, the Company might suffer significant losses and incur significant liabilities and obligations. The having or exercise of control or influence over an issuer could expose the assets of the Company, its Shareholders, the Operating Manager and their respective affiliates to claims by such issuer, its security holders and creditors and regulatory authorities or other bodies. While the Operating Manager seeks to manage the Company to minimize exposure to these risks, the possibility of successful claims cannot be precluded, nor can there be any assurance as to whether such laws, rules, regulations or court decisions will be expanded or otherwise applied in a manner that is adverse to the Portfolio Assets, the Company, and its Shareholders. Moreover, it is possible that, when evaluating a potential asset, the Operating Manager may choose not to pursue or consummate the acquisition of such asset, if any of the foregoing risks may create liabilities or other obligations for any of the Company, the Operating Manager or any of their respective affiliates, the Portfolio Assets, partners or employees.

***There is no restriction on credit quality for Company acquisitions of debt instruments and the amount and timing of payments with respect to loans are not guaranteed, which may cause losses.***

The Company may, in certain circumstances, acquire Asset-Backed Instruments, other debt instruments or convertible debt securities in connection with acquisitions in equity or equity-related securities (including as additional acquisitions) or may make debt acquisitions, which could take into account leverage incurred in connection with such acquisitions, comparable to equity or equity-related securities. Such debt may be unsecured and structurally or contractually subordinated to substantial amounts of senior indebtedness, all or a significant portion of which may be secured. Moreover, such debt acquisitions may not be protected by financial covenants or limitations upon additional indebtedness and there is no minimum credit rating for such debt acquisitions. Other factors may materially and adversely affect the market price and yield of such debt acquisitions, including investor demand, changes in the financial condition of the applicable issuer, government fiscal policy and domestic or worldwide economic conditions. Certain debt instruments which the Company may acquire may have speculative characteristics. A secured debt acquisition is subject to the same risks as the underlying asset securing the debt.

There are no restrictions on the credit quality of the acquisitions of the Company. Rating agencies rate debt securities based upon their assessment of the likelihood of the receipt of principal and interest payments. Rating agencies do not consider the risks of fluctuations in market value or other factors that may influence the value of debt securities. Therefore, the credit rating assigned to a particular instrument may not fully reflect the true risks of an acquisition in such instrument. Credit rating agencies may change their methods of evaluating credit risk and determining ratings. These changes may occur quickly and often. While the Company may give some consideration to ratings, ratings may not be indicative of the actual credit risk of the Company's assets in rated instruments.

Generally, acquisitions in speculative securities offer a higher return potential than higher-rated securities, but involve greater volatility of price and greater risk of loss of income and principal. The issuers of such instruments (including sovereign issuers) may face significant ongoing uncertainties and exposure to adverse conditions that may undermine the issuer's ability to make timely payment of interest and principal. Such instruments are regarded as predominantly speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligations and involve major risk exposure to adverse conditions. In addition, an economic recession could severely disrupt the market for most of these instruments and may have an adverse impact on the value of such instruments. It also is likely that any such economic downturn could adversely affect the ability of the issuers of such instruments to repay principal and pay interest thereon and increase the incidence of default for such instruments.

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The Company's portfolio, held indirectly through its subsidiaries, includes and will continue to include loans, which may be non-performing and possibly in default. Furthermore, the obligor and/or relevant guarantor may also be in bankruptcy or liquidation. There can be no assurance as to the amount and timing of payments with respect to such loans. Although the Operating Manager seeks to manage these risks, there can be no assurance that these acquisitions will increase in value or that the Company will not incur significant losses. The Operating Manager anticipates that several of the Company's assets will incur losses.

#### Acquiring Asset-Backed Instruments puts the Company at risk of any adverse changes of those assets.
The Asset-Backed Instruments which the Company acquires could deteriorate as a result of, among other factors, an adverse development in their business, a change in their competitive environment, or an economic downturn. As a result, Asset-Backed Instruments that the Company may have expected to be stable may operate at a loss or have significant variations in operating results, may require substantial additional capital to support their operations or to maintain their competitive positions or may otherwise have a weak financial condition or be experiencing financial distress. In some cases, the success of the Company's strategy and approach depends, in part, on the ability of the Company to effect improvements in the operations of the Asset-Backed Instruments and/or recapitalize their balance sheets. The activity of identifying and implementing operating improvements and/or recapitalization programs at the Asset-Backed Instruments entails a high degree of uncertainty. There can be no assurance that the Company will be able to successfully identify and implement such operating improvements and/or recapitalization programs. In addition, the Company may cause its Asset-Backed Instruments to bear certain fees, costs and expenses that the Company would otherwise bear, including the fees, costs and expenses incurred in developing, investigating, negotiating, structuring or consummating the Company's or any other acquisitions of such Asset-Backed Instruments. For example, the Operating Manager may cause such Asset-Backed Instruments to bear the fees, costs and expenses that are incurred in connection and concurrently with the acquisition of such Asset-Backed Instruments and such other fees, costs and expenses that may otherwise be treated as Operating Expenses.

The payment of such fees, costs and expenses by such Asset-Backed Instruments may reduce the amount of cash that the Asset-Backed Instruments have on hand.

#### The Company faces risks associated with opportunities in loans secured by real estate.
The Company acquires (indirectly through its subsidiaries) loans secured by real estate, and may, as a result of default, foreclosure or otherwise, hold real estate assets it was not otherwise expecting to hold. Real estate historically has experienced significant fluctuations and cycles in performance that may result in reductions in the value of the Company's opportunities. The Company may be subject to the varying degrees of risk generally incident to ownership and operations of the properties to which the Company will be exposed and which collateralize or support its assets. Of particular concern may be those environmental risks provided by mortgaged properties that are, or have been, the site of manufacturing, industrial or disposal activity. Such environmental risks may give rise to a diminution in the value of property (including real property securing any platform) or liability for cleanup costs or other remedial actions, which liability could exceed the value of such property or the principal balance of the related Portfolio Assets of the Company. In certain circumstances, a lender may choose not to foreclose on contaminated property rather than risk incurring liability for remedial actions.

The ultimate performance and value of the Company's real estate-related instruments depend upon, in large part, the Company's ability to operate each such instrument so that it provides sufficient cash flows necessary to pay the Company's equity acquisition and a return on such acquisition, or to pay interest and principal due to the Company or a lender. Revenues and cash flows may be adversely affected by*:*

• changes in local real estate market conditions due to changes in national or local economic conditions or changes in local property market characteristics;

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• government regulation including taking or condemnation losses and limitations on rent, such as rent control and rent stabilization;

• competition from other properties and changes in the supply and demand for competing properties in an area;

• fluctuations in building occupancy and the financial resources of tenants;

• changes in interest rates and in the state of the debt and equity capital markets, particularly the availability of debt financing which may render the sale or refinancing of properties difficult or impracticable;

• the ongoing need for capital improvements, particularly in older buildings;

• changes in real estate tax rates and other operating expenses;

• adverse changes in governmental rules and fiscal policies, civil unrest, acts of God, including earthquakes, hurricanes, floods, fires and other natural disasters, acts of war or terrorism, which may decrease the availability of or increase the cost of insurance or result in uninsured losses;

• adverse changes in zoning laws;

• the impact of present or future environmental legislation and compliance with environmental laws;

• the impact of lawsuits which could cause the Company to incur significant legal expenses and divert management's time and attention from day-to-day operations of the Company; and

• other adverse factors that are beyond the Company's control.

In the event that any of the Company's Portfolio Assets experience any of the foregoing events or occurrences, the value of, and return on, such acquisition would be negatively impacted.

#### The Company faces risks associated with acquiring residential mortgage-backed securities.
The Company, through its subsidiaries, may acquire certain of its assets in residential mortgage-backed securities ("RMBS") and become holders of RMBS. Holders of RMBS bear various risks, including credit, market, interest rate, structural and legal risks. RMBS represent interests in pools of residential mortgage loans secured by residential mortgage loans. Such loans may be prepaid at any time. Residential mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity, although such loans may be securitized and the securities issued in such securitization may be guaranteed or credit enhanced. The rate of defaults and losses on residential mortgage loans will be affected by a number of factors, including general economic conditions and those in the area where the related mortgaged property is located, the borrower's equity in the mortgaged property and the financial circumstances of the borrower. If a residential mortgage loan is in default, foreclosure of such residential mortgage loan may be a lengthy and difficult process, and may involve significant expenses. Furthermore, the market for defaulted residential mortgage loans or foreclosed properties may be very limited.

At any one time, a portfolio of RMBS may be backed by residential mortgage loans with disproportionately large aggregate principal amounts secured by properties in only a few states or regions. As a result, the residential mortgage loans may be more susceptible to geographic risks relating to such areas, such as adverse economic conditions, adverse events affecting industries located in such areas and natural hazards affecting such areas, than would be the case for a pool of mortgage loans having more diverse property locations. In addition, the residential mortgage loans may include so-called "Jumbo" mortgage loans, having original principal balances that are higher than is generally the case for residential mortgage loans. As a result, such a portfolio of RMBS could experience increased losses.

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Each underlying residential mortgage loan in an issue of RMBS may have a balloon payment due on its maturity date. Balloon residential mortgage loans involve a greater risk to a lender than self-amortizing loans, because the ability of a borrower to pay such amount will normally depend on its ability to obtain refinancing of the related mortgage loan or sell the related mortgaged property at a price sufficient to permit the borrower to make the balloon payment, which will depend on a number of factors prevailing at the time such refinancing or sale is required, including the strength of the residential real estate markets, tax laws, the financial situation and operating history of the underlying property, interest rates and general economic conditions. If the borrower is unable to make such balloon payment, the related issue of RMBS may experience losses.

Prepayments on the underlying residential mortgage loans in an issue of RMBS will be influenced by the prepayment provisions of the related mortgage notes and may also be affected by a variety of economic, geographic and other factors, including the difference between the interest rates on the underlying residential mortgage loans (giving consideration to the cost of refinancing) and prevailing mortgage rates and the availability of refinancing. In general, if prevailing interest rates fall significantly below the interest rates on the related residential mortgage loans, the rate of prepayment on the underlying residential mortgage loans would be expected to increase. Conversely, if prevailing interest rates rise to a level significantly above the interest rates on the related mortgages, the rate of prepayment would be expected to decrease. Prepayments could reduce the yield received on the related issue of RMBS.

Residential mortgage loans in an issue of RMBS may be subject to various federal and state laws, public policies and principles of equity that protect consumers, which among other things may regulate interest rates and other charges, require certain disclosures, require licensing of originators, prohibit discriminatory lending practices, regulate the use of consumer credit information and regulate debt collection practices. Violation of certain provisions of these laws, public policies and principles may limit the servicer's ability to collect all or part of the principal of or interest on a residential mortgage loan, entitle the borrower to a refund of amounts previously paid by it, or subject the servicer to damages and sanctions. Any such violation could result also in cash flow delays and losses on the related issue of RMBS.

RMBS may have structural characteristics that distinguish them from other asset-based securities. The rate of interest payable on RMBS may be set or effectively capped at the weighted average net coupon of the underlying mortgage loans themselves. As a result of this cap, the return to investors is dependent on the relative timing and rate of delinquencies and prepayments of mortgage loans bearing a higher rate of interest. In general, early prepayments will have a greater impact on the yield to investors. Federal and state law may also affect the return to investors by capping the interest rates payable by certain mortgagors. The Servicemembers Civil Relief Act of 2003 provides relief for soldiers and members of the reserve called to active duty by capping the interest rates on their mortgage loans at 6% per annum. Certain RMBS may provide for the payment of only interest for a stated period of time.

In addition, structural and legal risks of RMBS include the possibility that, in a bankruptcy or similar proceeding involving the originator or the servicer (often the same entity or affiliates), the assets of the issuer could be treated as never having been truly sold by the originator to the issuer and could be substantively consolidated with those of the originator, or the transfer of such assets to the issuer could be voided as a fraudulent transfer. Challenges based on such doctrines could result also in cash flow delays and losses on the related issue of RMBS.

Bankruptcy-related reorganizations can be contentious and adversarial. It is by no means unusual for participants to use the threat of, as well as actual, litigation as a negotiating technique. The Operating Manager anticipates that during the term of the Company, the Operating Manager and the Company may be named as defendants in civil proceedings. The expense of defending against claims by third parties and paying any amounts pursuant to settlements or judgments would generally be borne by the Company or the relevant assets and would reduce net assets.

It is not expected that RMBS will be guaranteed or insured by any governmental agency or instrumentality or by any other person, although the Company will be permitted to acquire direct obligations of, or that are fully guaranteed as to principal and interest by, the United States or certain instrumentalities thereof. Distributions on RMBS will depend solely upon the amount and timing of payments and other collections on the related underlying mortgage loans.

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#### The Company may face risks associated with purchasing participation interests in debt instruments.
The Company may purchase participation interests in debt instruments which do not entitle the holder thereof to direct rights against the obligor. Participations held by the Company's subsidiaries in a seller's portion of a debt instrument typically result in a contractual relationship only with such seller, not with the obligor. The Company has the right to receive payments of principal, interest and any fees to which it is entitled only from the seller and only upon receipt by such seller of such payments from the obligor. In connection with purchasing participations, the Company generally has no right to enforce compliance by the obligor with the terms of the related loan agreement, nor any rights of set-off against the obligor and the Company may not directly benefit from the collateral supporting the debt instrument in which it has purchased the participation. As a result, the Company assumes the credit risk of both the obligor and the seller selling the participation. In the event of the insolvency of such seller, the Company may be treated as a general creditor of such seller and may not benefit from any set-off between such seller and the obligor. When the Company holds a participation in a debt instrument, it may not have the right to vote to waive enforcement of any restrictive covenant breached by an obligor or, if the Company does not vote as requested by the seller, it may be subject to repurchase of the participation at par. Sellers voting in connection with a potential waiver of a restrictive covenant may have interests different from those of the Company, and such selling institutions may not consider the interests of the Company in connection with their votes.

#### The Company's business may be affected by prepayment risk.
The frequency at which prepayments (including voluntary prepayments by obligors and accelerations due to defaults) occur on bonds and loans will be affected by a variety of factors, including the prevailing level of interest rates and spreads, as well as economic, demographic, tax, social, legal and other factors. Generally, obligors tend to prepay their fixed-rate obligations when prevailing interest rates fall below the coupon rates on their obligations. Similarly, floating rate issuers and borrowers tend to prepay their obligations when spreads narrow.

In general, "premium" securities (securities whose market values exceed their principal or par amounts) are adversely affected by faster than anticipated prepayments. Since many fixed-rate obligations will be premium instruments when interest rates and/or spreads are low, such debt instruments and Asset-Backed Instruments may be adversely affected by changes in prepayments in any interest rate environment.

The adverse effects of prepayments may impact the Company's holdings in two ways. First, particular instruments may experience outright losses, as in the case of an interest-only instrument in an environment of faster actual or anticipated prepayments. Second, particular instruments may underperform relative to hedges that the Operating Manager may have constructed for these assets, resulting in a loss to the Company's overall portfolio. In particular, prepayments (at par) may limit the potential upside of many instruments to their principal or par amounts, whereas their corresponding hedges often have the potential for unlimited loss.

***If a REIT Subsidiary does not qualify as a REIT, it will be subject to tax as a regular corporation and could face a substantial tax liability.***

The Company may (but is not required to) hold a portion of its Portfolio Assets through one or more affiliated entities electing to be treated as REIT. However, qualification as a REIT involves the application of highly technical and complex Code provisions for which only a limited number of judicial or administrative interpretations exist. Notwithstanding the availability of cure provisions in the Code, various compliance requirements could be failed and could jeopardize the REIT status of any REIT Subsidiary. Furthermore, new tax legislation, administrative guidance or court decisions, in each instance potentially with retroactive effect, could make it more difficult or impossible for a REIT Subsidiary to qualify as a REIT. If a REIT Subsidiary fails to qualify as a REIT in any tax year, then:

• it would be taxed as a regular domestic corporation, which under current laws, among other things, means being unable to deduct distributions to stockholders in computing taxable income and being subject to federal income tax on its taxable income at regular corporate income tax rates; any resulting tax liability could be substantial and could have an adverse effect on the value of the Shares;

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• unless it is entitled to relief under applicable statutory provisions, it would be required to pay taxes, and thus, its cash available for distribution to stockholders would be reduced for each of the years during which it did not qualify as a REIT and for which it had taxable income; and

• it generally would not be eligible to requalify as a REIT for the subsequent four full taxable years.

#### The Company may face risks associated with REITs.
In the event that the Company chooses to acquire or form a REIT Subsidiary in the future, such event could subject the Company to numerous risks. If a REIT Subsidiary does not qualify as a REIT or certain REIT Subsidiary assets are held through taxable REIT Subsidiaries, it will be subject to tax as a regular corporation and could face a substantial tax liability or other restrictions in its acquisition activities. In addition, for a REIT Subsidiary to maintain its REIT status, it may have to borrow funds on a short-term basis during unfavorable market conditions, which would adversely affect the Company's (and in turn the Shares') performance.

***Due to different accounting and other standards, the Company may be presented with information that is less reliable and less sophisticated than GAAP principles would allow for, which would adversely affect the Company's business.***

Accounting, financial, auditing and other reporting standards, practices and disclosure requirements that are not equivalent to GAAP, may differ in fundamental ways. Accordingly, information available to the Company that is not consistent with GAAP, including both general economic and commercial information and information concerning specific Portfolio Assets, may be less reliable and less detailed than information available in more financially sophisticated countries, which could adversely impact, among other things, the Company's due diligence and reporting activities. Assets and profits appearing on the financial statements of a Portfolio Asset may not reflect its financial position or results of operations in the way they would be reflected had such financial statements been prepared in accordance with GAAP. Even for financial statements prepared in accordance with GAAP, the accounting entries and adjustments may not reflect economic reality and actual value.

Furthermore, for a Portfolio Asset that keeps accounting records in a currency other than U.S. dollars, inflation accounting rules in certain markets require, for both tax and accounting purposes, that certain assets and liabilities be restated on the Portfolio Asset's balance sheet in order to express items in terms of a currency of constant purchasing power. As a result, financial data of acquisition targets may be materially affected by restatements for inflation and may not accurately reflect actual value. Accordingly, the Company's ability to conduct due diligence in connection with an acquisition and to monitor acquired assets may be adversely affected by these factors.

#### Some Asset-Backed Instrument acquisitions occur on an expedited basis which may result in limited financial information being available, and limited time to conduct analysis.
Investment analyses and recommendations by the Operating Manager and investment decisions by the Acquisition Committee will often be undertaken on an expedited basis in order for the Company to take advantage of acquisition opportunities. In such cases, the information available to the Operating Manager and/or the Acquisition Committee at the time of an acquisition-related recommendation and/or decision, respectively, may be limited, and one or both of them may not have access to the detailed information necessary for a full evaluation of the opportunity. In addition, the financial information available to the Operating Manager and/or the Acquisition Committee may not be accurate or provided based upon accepted accounting methods. The Acquisition Committee will rely upon consultants or advisors in connection with the evaluation of proposed acquisitions. There can be no assurance that these consultants or advisors will accurately evaluate such acquisitions.

***The Company may need to incur financial leverage to be able to achieve its business objectives. The Company cannot guarantee the availability of such financing.***

Borrowing money to partially or wholly purchase Portfolio Assets could provide the Company with the opportunity for greater capital appreciation but, at the same time, will increase the Company's exposure to capital and interest rate risk and higher expenses. The terms and cost of such borrowing will be dependent on market conditions

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and could involve one or more types of financing, including without limitation, asset-based financing, repurchase agreements, securities lending, and/or prime brokerage financing, including margin lending. See "—*The availability of capital is generally a function of capital market conditions that are beyond the control of the Company or any Portfolio Asset and this may increase the exposure of such Portfolio Asset to adverse economic factors or unfavorable financing terms, which may subject the Company to risks or adversely affect its business*" below. If the assets of the Company are not sufficient to pay the principal of, and interest on, the debt when due, or if the Company breaches any covenant or any other obligation with respect to such borrowing, then the Company could sustain a total loss of its Portfolio Assets.

***The success of the Company depends on its ability to navigate the acquisitions and competition of the market. It is possible that competition for appropriate acquisition opportunities may increase, thus reducing the number of opportunities available to the Company and adversely affecting the terms, including pricing, upon which Asset-Backed Instruments can be acquired.***

There is currently, and will continue to be, competition for acquisition opportunities by vehicles, with objectives and strategies similar to the Company's objectives and strategies, as well as by private equity funds, business development companies, strategic investors, hedge funds and others. See "*—Due to conflicts between PIMCO or its affiliates and the Company regarding allocation of acquisition opportunities, there is no guarantee that the Company will participate in specific PIMCO opportunities, which may harm the Company's performance.*" Some of these competitors may have more relevant experience, greater financial, technical, marketing and other resources, more personnel, higher risk tolerances, different risk assessments, lower return thresholds, lower cost of capital, access to funding sources unavailable to the Company and a greater ability to achieve synergistic cost savings in respect of an investment other than the Company, the Operating Manager, PIMCO and each of their respective affiliates. It is possible that competition for appropriate acquisition opportunities may increase, thus reducing the number of opportunities available to the Company and adversely affecting the terms, including pricing, upon which acquisition of Asset-Backed Instruments can be made. Such competition is particularly acute with respect to participation by the Company in auction proceedings. To the extent that the Company encounters competition for acquisitions, returns to Shareholders may decrease, including as a result of significant fees and expenses identifying, investigating and attempting to acquire potential assets that the Company does not ultimately acquire, including fees and expenses relating to due diligence, travel and related expenses.

Based on the foregoing, there can be no assurance that the Company will be able to identify or consummate acquisitions that satisfy the Company's rate of return objectives or realize upon their values, or that the Company will be able to deploy fully its committed capital. The success of the Company depends on the Operating Manager's ability to identify suitable acquisitions, to negotiate and arrange the closing of appropriate transactions and to arrange the timely disposition of Asset-Backed Instruments.

***Credit facilities may impose limitations on the Company's business, such as caps on borrowings, or result in the Company being liable for borrowings of another party to a transaction.***

As described in "*Item 1. Business—Borrowings and Leverage*," the Company and/or the Series are expected to obtain one or more credit facilities in order to (i) facilitate acquisitions, financings or dispositions by the Company and Portfolio Assets, (ii) fund Organizational and Offering Expenses, Operating Expenses, Management Fees, placement fees or other obligations of the Company (including to facilitate the making of distributions, including Performance Fee distributions) or Portfolio Assets, (iii) to conduct Share Repurchases under the Repurchase Plan or (iv) otherwise carry out the activities of the Company. There is no guarantee the Company will obtain any such credit facilities on favorable terms or at all. If the Company obtains a credit facility, it is generally expected that the Company's interim capital needs would be satisfied through borrowings by the Company under the credit facility, including those used to pay interest on credit facilities. Credit facilities are utilized by operating companies for various purposes, including to bridge the time between the closing of an acquisition and the receipt of proceeds from periodic subscriptions, to make distributions and for broader cash management purposes. From the Shareholders' perspective, such facilities can smooth cash flows. In addition, such facilities permit the Company to have ready access to cash in the event short-term funding obligations (e.g*.*, margin requirements) arise, which allows for efficient cash management (as opposed to holding larger cash reserves).

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Borrowings by the Company or its operating entities or other subsidiaries also may, in whole or in part, be directly or indirectly secured by the Company's assets.

For the avoidance of doubt, neither the foregoing restrictions pertaining to borrowings and guarantees nor the Company's acquisition limitations, if any, will apply to, or prevent the Company from entering into (a) any non-recourse asset-based financing or (b) agreements to indemnify or provide funds in the event of breaches of contractual provisions by the Company, its subsidiaries or its acquisitions (whether such agreement to provide funds is described as a guarantee, performance undertaking or otherwise). Any funded guarantees of indebtedness or other obligations of Portfolio Assets or such other entities will only be included with the interests of the Company in the relevant acquisition for purposes of measuring the Company's limitations, if any, to the extent determined by the Operating Manager.

There are no limitations under the LLC Agreement on the time any borrowings or guarantees by the Company under a credit facility may remain outstanding, and the interest expense and other fees, costs and expenses of or related to any borrowings or guarantees by the Company will be Operating Expenses and, accordingly, will decrease net returns of the Company.

As the Operating Manager determines, in its discretion, lenders or other providers of financing to the Company or its existing or potential assets, operating entities or other subsidiaries can include PIMCO, PIMCO Clients or any of their respective affiliates or existing or potential Portfolio Assets, and could take the form of stapled or seller financing to Portfolio Assets that are the subject of a disposition. Any such transactions will give rise to conflicts of interest between PIMCO or the relevant financing provider, on the one hand, and the Company, on the other hand; however, subject to the Operating Manager's policies and procedures then in effect and the terms of the LLC Agreement, such transactions generally will not require the approval of the Board or consent of the Shareholders and as described in "—*Potential Conflicts of Interest—Other Activities of the Operating Manager*" below.

It is possible that a counterparty, lender or other unaffiliated participant in credit facilities (or otherwise in connection with the acquisition of Portfolio Assets) requires or desires to face only one entity or group of entities, which may result in (i) the Company and/or a Portfolio Asset being solely liable with respect to such third party for such other entities' share of the applicable obligation or (ii) the Company or such Portfolio Asset being jointly and severally liable for the full amount of such applicable obligation. Such arrangements may result in the Company and such third party or third parties (which could include PIMCO, its affiliates or other PIMCO Clients) entering into, participating in or applying a back-to-back or other similar reimbursement arrangement (and in most circumstances, especially where there are back-to-back or other similar reimbursement obligations, the Company and/or such third parties, as applicable, would not be compensated (or provide compensation to the other) for being primarily liable to, contributing amounts in excess of its *pro rata* share to or otherwise directly contracting with such counterparty, lender or other unaffiliated participant) which also could include provisions intended to mitigate certain impacts that may arise with respect to the primary obligor, which could be the Company or PIMCO, its affiliates or another PIMCO Client (*e.g.*, any reduction in the borrowing base of the Company, as the primary obligor attributable to credit support attributable to PIMCO, its affiliates or one or more other PIMCO Clients that are indirect obligors) relating to a reduction in its borrowing base under a credit facility. If the Company enters into any such arrangements with PIMCO, its affiliates or one or more other PIMCO Clients, it will be subject to the counterparty risk of PIMCO, its affiliates or the other PIMCO Clients involved, including, without limitation, the risk of a default or delay in the performance of PIMCO, its affiliates or such other PIMCO Client's obligations. The foregoing arrangements will arise in connection with Co-Investments, in particular where a counterparty transacts with a single entity resulting in the Company having to enter into back-to-back arrangements with Co-Investors or a co-investment vehicle. Although the Operating Manager will, in good faith, allocate the related repayment obligations and other related liabilities arising out of such credit facilities among the foregoing (to the extent applicable), the alternative investment vehicles of the Company will, in such circumstance, be subject to each other's credit risk, as well as the credit risk of such Portfolio Assets. In such situations it is not expected that the Company and/or such Portfolio Asset would be compensated (or provide compensation to the other) for being primarily liable vis-à-vis such third-party counterparty, and even where the Company incurs primary liability and PIMCO, its affiliates or other PIMCO Clients participate in such obligation by virtue of sharing arrangements, a portion of any guarantee or other similar fees paid to the Company likely would be shared with PIMCO, its affiliates or the applicable other PIMCO Client(s), despite the incremental risk taken on by the Company.

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The Operating Manager may be subject to conflicts of interest in allocating such repayment obligations and other related liabilities. As stated above, the Company is authorized to make permanent borrowings utilizing a credit facility or other forms of leverage, whereby the Company borrows money with no intention at the time of the borrowing to repay it using capital contributions for any purpose, including the making of equity, debt or other assets, even if the asset is initially being permanently levered using a credit facility but ultimately replaced in whole or in part with other forms of permanent financing. Such forms of permanent leverage could be used in addition to or in lieu of asset-level financing in connection with the acquisition, financing or realization (in whole or in part) of an asset. This could result in the capital structures of Portfolio Asset being structured or managed in a way that utilizes permanent forms of financing (such as permanent borrowings under a credit facility) where such forms of financing are not necessarily required in connection with the acquisition or other activity with respect to the Portfolio Asset. The Operating Manager will, in its discretion, determine whether and to what extent a borrowing is "recourse" to the applicable Series (and could determine to count such borrowing or indebtedness for purposes of such cap only to the extent that it is so secured), and will be subject to conflicts of interest in making such determination given that, among other things, if a borrowing is not deemed to be recourse to such Series, then it will not count towards the aforementioned cap on borrowings at such Series level or be subject to certain of the limitations applicable to certain assets across the capital structure (including in different levels thereof) of Portfolio Assets. Furthermore, it is possible that an Affiliated Service Provider could earn Other Fees in connection with the structuring, placement or syndication of any such credit facility or other fund-level financing.

At any time, the Operating Manager has the ability to cause the Company and/or related entities, including subsidiaries and intermediate entities or SPVs that have been or will be formed for the purpose of holding one or more Portfolio Assets, including newly formed entities, to enter into "NAV" facilities or similar financing arrangements the effect of which, among other things, could accelerate the receipt of distributions, including Performance Fee, to PIMCO. The provider of any such financing can be any person that is permitted to provide financing to the Company. In connection with such transactions, the Operating Manager has the ability to pledge the Company's assets, including on a cross-collateralized basis. Such financing arrangements will not be considered borrowings by the Company for purposes of the limitations on borrowings (or any limits on issuing additional interests) by the Company and will be excluded from the calculation of applicable acquisition limitations of the Company, if any.

#### Industry and Sector Specific Risks

#### Risks Related to Strategic Investments in Securities and Other Asset-Backed Instruments
***The Company's acquisition of Asset-Backed Instruments may involve risks that differ from or are greater than risks associated with other types of instruments. Such risks include, among others, credit risk, liquidity risk, interest rate and other market risk, operational risk, structural risk, sponsor risk and other legal risk.***

An ABS is a fixed income security that predominantly derives its creditworthiness from cash flows relating to a pool of assets. These securities include securities backed by many types of assets, including pools of automobile loans, residential mortgages, educational loans, home equity loans, credit card receivables and secured or unsecured bonds issued by corporate or sovereign obligors, unsecured loans made to a variety of industrial loan customers of one or more lending banks or a combination of those bonds and loans (*i.e.*, CLOs or CDOs).

Payment of interest and repayment of principal on ABSs largely depends on the cash flows generated by the underlying assets backing the securities and, in certain cases, may be supported by letters of credit, surety bonds or other credit enhancements. The amount of market risk associated with ABSs depends on many factors, including the deal structure, such as determinations as to the required amount of underlying assets or other support needed to produce the cash flows necessary to service interest and principal payments, the quality of the underlying assets, the level of credit support, if any, provided for the securities, and the credit quality of the credit-support provider, if any. ABSs involve risk of loss of principal if obligors of the underlying obligations default and the defaulted amounts exceed the securities' credit support. Principal repayment could be materially slowed depending on the cash flows generated by the underlying assets and/or principal losses may materially reduce payments received by a holder. Payments may be affected by changes in prepayment and delinquency rates, loss severity, ability of bond insurers to honor obligations, future levels of interest rates, the structure of legal contracts and assumptions made by the Operating Manager.

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The obligations underlying ABSs, in particular mortgage-backed securities ("MBSs"), also are subject to unscheduled prepayment and the Company may be unable to redeploy prepayments at as high a yield as the ABS. Further, early payment may cause these securities to experience significantly greater price and yield volatility than traditional fixed income securities. If the life of an ABS is inaccurately predicted, the Company may not be able to realize the rate of return it expected.

MBSs are subject to varying degrees of credit risk, depending on whether they are issued by agencies or instrumentalities of the U.S. government, including those whose securities are neither guaranteed nor insured by the U.S. government, or by U.S. governments or non-governmental issuers. In addition, MBSs are subject to the risk of loss of principal if the obligors of the underlying obligations default in their payment obligations, and to certain other risks. A mortgage pool may issue securities subject to various levels of subordination; the risk of non-payment affects securities at each level, although the risk is greater in the case of more highly subordinated securities. For example, if the Company purchases MBSs that are "subordinated" to other interests in the same mortgage pool, the Company as a holder of those securities may only receive payments after the pool's obligations to other holders have been satisfied. An unexpectedly high rate of defaults on the mortgages held by a mortgage pool may limit substantially the pool's ability to make payments of principal or interest to the Company as a holder of such subordinated securities, reducing the market values of those securities or in some cases rendering them worthless; the risk of such defaults is generally higher in the case of mortgage pools that include so-called "sub-prime" mortgages. An unexpectedly high or low rate of prepayments on a pool's underlying mortgages may have a similar effect on subordinated securities.

Government actions and proposals affecting the terms of underlying home and consumer loans, changes in demand for products, such as automobiles, financed by those loans and the inability of borrowers to refinance existing loans, such as subprime mortgages, have had, and may continue to have, adverse valuation and liquidity effects on ABSs. In addition, the SEC has proposed certain disclosure requirements for issuers of ABSs and the effect of these proposals on the market for ABSs is currently unknown and may be significant and adverse.

In addition, many agency MBSs are purchased in forward-settling transactions conducted in the TBA market. The parties to such transactions bear counterparty risk, particularly if the transactions are uncleared and the parties did not agree to post-collateral or margin. The Federal Reserve Bank of New York's Treasury Market Practices Group has recommended introducing margin requirements for all forward-settling agency MBSs, which historically have not been collateralized. Further, in early 2014, FINRA proposed amendments to the FINRA rules that would establish mandatory margin requirements for the TBA market, including TBA transactions, certain MBS and ABS pool transactions and certain transactions in collateralized mortgage obligations ("CMOs"), in each case for which the difference between the trade date and the contractual settlement date is greater than three (3) business days, with limited exceptions. The collateralization of TBA trades is intended to mitigate counterparty credit risk between trade and settlement, but imposes added operational complexity.

The value of ABSs also may be affected by other factors, such as the availability of information concerning the pool and its structure, the creditworthiness of the servicing agent for the pool and its ability to service the underlying collateral, the originator of the underlying assets or the entities providing the credit enhancement. In addition, the value of ABSs is subject to risks associated with the servicers' performance. In some circumstances, a servicer's or originator's mishandling of documentation related to the underlying collateral, such as failure to properly document a security interest in the underlying collateral, may affect the rights of the security holders in and to the underlying collateral. A single financial institution may serve as a trustee for multiple ABSs. As a result, a disruption in that institution's business may have a material impact on multiple ABSs. In addition, the insolvency of entities that generate receivables or that utilize the underlying assets may result in a decline in the value of the underlying assets as well as costs and delays.

Certain types of ABSs may not have the benefit of a security interest in the related assets. In addition, the Company may acquire securities backed by pools of corporate or sovereign bonds, bank loans made to corporations or a combination of those bonds and loans, many of which may be unsecured. In other instances, the holders of the receivables underlying an ABS may not have a proper security interest or even when security interests are present, the ability of an issuer of certain types of ABSs to enforce those interests may be more limited than that of an issuer of MBSs. In addition, certain types of ABSs may experience losses on the underlying assets as a result of certain rights provided to consumer debtors under federal and state law.

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As with MBSs, ABSs are subject to the risks associated with the loans or other underlying assets.

***Positions in smaller and middle-market companies can involve heightened risks due to, among other factors, lack of resources, wider price fluctuations and reduced liquidity from lower frequency and volume of trading in the company's securities.***

While smaller and middle-market companies generally have potential for rapid growth, they often involve higher risks, including because they may lack the management experience, financial resources, product diversification, competitive strength or access to capital of larger companies. In addition, in many instances, the frequency and volume of the trading of securities for such companies may be substantially less than is typical of larger companies. As a result, the securities of smaller and middle-market companies may be subject to wider price fluctuations. When liquidating positions in smaller and middle-market companies, the Company may have to sell portfolio holdings at discounts from quoted prices or may have to make a series of small transactions over an extended period of time. In addition, positions in such companies may also be particularly difficult to analyze due to, among other factors, limited attention from analysts and large institutional investors and, in certain cases, limited publicly available financial information. With respect to the Company's position in small- and medium-size enterprise loans and similar loans, the Company may receive less borrower information, receive less collateral and be subject to heightened default risk as compared to loans made to other types of entities. These factors related to positions in smaller and middle-market companies may materially and adversely affect the Company's business, results of operations, financial condition and net worth.

#### Positions in stressed and distressed assets are speculative in nature and may incur significant or total losses for the Company.
The Company is expected to take positions, on an active or opportunistic basis, in bonds, loans, notes and other obligations and securities, including derivatives relating to any of the foregoing, of issuers experiencing, or expected to experience, financial stress or distress, which may include supporting and/or participating in the provision of debtor-in-possession or rescue loans. Such Portfolio Assets may trade significantly below par, are considered speculative and entail substantial inherent risks, which are generally significantly higher than the risks involved in investing in other companies. In particular, defaulted obligations might be repaid, if at all, only after lengthy workout or bankruptcy proceedings, during which the issuer might not receive, or even accrue, any interest or other payments; the amount of any recovery may be affected by the relative security of the Company's position in the issuer's capital structure, and the recovery could be in the form of instruments or interests different from the instrument or interest providing the basis for the claim and on terms that may differ from prevailing market terms for similar instruments or interests. In addition, such Portfolio Assets are more likely to be challenged as fraudulent conveyances, and amounts paid on the Portfolio Assets may be subject to avoidance as a preference under certain circumstances. See "*—The Company's instruments are subject to fraudulent conveyance and preference considerations and thus involve heightened risk of loss.*" and "*—Bankruptcy and insolvency cases involve many significant risks and may lead to material or total losses on the Company's positions*" below.

#### Bankruptcy and insolvency cases involve many significant risks and may lead to material or total losses on the Company's positions.
If any issuers of debt or equity held by the Company or any counterparties to the derivatives transactions and other transactions entered into by the Company, or any custodians of the Company's assets or any obligors in connection with Portfolio Assets, are involved in bankruptcy proceedings, the Company will be subject to certain risks inherent in bankruptcy proceedings, including the duration, administrative costs and impact of a bankruptcy case on the value of assets administered in bankruptcy or on a company's or asset's value, including that a bankruptcy case may damage or diminish a company's relationship with its employees, customers and/or suppliers. Many of the events within a bankruptcy or insolvency case are adversarial and often beyond the control of the debtor's management, creditors, equityholders and other interested parties. In a bankruptcy case, while creditors and other interested parties generally are afforded an opportunity to object to significant actions, or to demand that certain actions take place, there can be no assurance that a court would not approve actions or inaction which may be contrary to the interests of the Company.

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Generally, the duration of a bankruptcy or insolvency case can only be roughly estimated. The reorganization of a company can involve substantial legal, professional and administrative costs to the company and to the Company; it is subject to unpredictable and lengthy delays, and during the process the company's competitive position may erode, key management and employees may depart and the company may not have access to capital to make expenditures necessary to preserve the value of its business. In some cases, the company may not be able to reorganize and may be required to liquidate assets on an expedited basis. The debt of companies in bankruptcy proceedings may, in some cases, not pay current interest and other charges, may not accrue interest and other charges during pendency of the bankruptcy case, may not be entitled to payment of pre-payment premiums and may be adversely affected by an erosion of the issuer's fundamental value. In addition, the priority and enforceability of debt against a company in bankruptcy may be subject to challenge in a bankruptcy proceeding, including with respect to fees that may have been paid prior to the commencement of the bankruptcy proceeding and any original issue discount on the price of the debt at the time of issuance. The status and priority of debt may be challenged in bankruptcy under the doctrines of debt recharacterization and equitable subordination. Further, a debtor seeking to reorganize under U.S. federal bankruptcy law will frequently obtain relief from the bankruptcy court limiting trading in claims against, and shares of, the debtor in order to maximize the debtor's ability to utilize tax attributes, such as net operating losses, following a reorganization. This relief may limit the Company's ability to buy or sell debt and equity positions.

During the pendency of a bankruptcy case, an automatic stay put in place by the applicable bankruptcy court will, unless lifted by the court, generally prevent creditors from taking action against the debtor to foreclose on collateral or otherwise to collect on amounts owed to such creditors. Unless a creditor's claim in such case is secured by assets having a value in excess of such claim, or the bankruptcy estate is determined to be solvent, no interest on debt claims will accrue during the pendency of the bankruptcy case. Moreover, even under circumstances where interest may accrue during the pendency of the bankruptcy case, a court may limit the amount of such interest, including preventing the collection of default interest or penalties that the debtor might otherwise be liable for. Therefore, even in a successful bankruptcy reorganization, a creditor's return can be adversely affected by the passage of time during which a plan of reorganization or liquidation of the debtor is being developed and negotiated, approved by the applicable creditors and holders of interests and confirmed by the bankruptcy court.

The priority of valid and perfected liens held by secured creditors as of the commencement of the bankruptcy case is typically recognized in a bankruptcy case, unless avoided as a preference or fraudulent transfer. However, under certain circumstances, a court may allow a debtor-in-possession to obtain post-petition financing by granting liens that are *pari passu* or senior to preexisting, valid liens. Under certain circumstances, such post-petition financing can also include pre-existing debt that is rolled into such *pari passu* or senior post-petition financing. In addition, under certain circumstances, a court may allow a debtor-in-possession to sell assets subject to a valid and perfected lien, with such lien attaching to the proceeds of such sale. Although a secured creditor with valid and perfected liens on such assets usually has the ability to "credit bid" on such assets up to the full value of the debt secured by such assets, under certain circumstances a court can prevent or restrict this ability to credit bid.

The administrative costs in connection with a bankruptcy case, including any post-petition financing, are frequently high and will generally be satisfied from assets of the debtor's estate prior to any distributions to creditors, other than out of assets or proceeds thereof which are subject to valid and enforceable liens and other security interests, and equityholders. In addition, certain types of unsecured claims have legal priority to bankruptcy estate distributions over the claims of other general unsecured creditors, for example, claims arising post-petition and certain claims for wages and taxes.

U.S. bankruptcy law generally does not permit the separate classification of "substantially similar" claims in determining the classification of claims in a reorganization for the purpose of voting on a plan of reorganization. However, because the standard for classification is vague, there exists a significant risk that the Company's bankruptcy plan voting rights with respect to a class of debt or equity can be diminished by the inflation of the number and the amount of claims in, or other gerrymandering of, bankruptcy plan voting classes.

Although a claimant is not typically compelled to release direct claims it may have against non-debtor third parties, in certain circumstances a court may compel such release in the context of a plan of reorganization or liquidation.

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Claims in bankruptcy cases often recover less than the full allowed amount of such claims, and, depending on the debtor's assets and liabilities, there may be no recovery at all for some classes of creditors. The claims of even over-secured creditors are sometimes paid out over time and may receive, as bankruptcy plan consideration, debt instruments that will trade below par. At the outset of a bankruptcy case, only the debtor may file a proposed plan of reorganization or liquidation. While the U.S. Bankruptcy Code permits other parties-in-interest to file proposed plans of reorganization or liquidation after the debtors' "exclusive period" to do so ends, bankruptcy courts typically extend the debtor's exclusive period, which effectively permits only the debtor to file a proposed reorganization or liquidation plan. While impaired creditors and equityholders can vote on the plan of reorganization or liquidation, the unanimous consent of all creditor and equityholder classes is often not required for the bankruptcy court to confirm a proposed plan. Therefore, subject to certain provisions of the U.S. Bankruptcy Code, a proposed plan may be "crammed down" on dissenting classes of creditors and equityholders upon the acceptance of that plan by at least one impaired accepting creditor class. Moreover, minority members of a class may be deemed to be members of an accepting class if the requisite majority of that class votes to accept the proposed plan.

Even if a class of claims is entitled to a recovery in a reorganization or liquidation proceeding, such recovery could be in the form of instruments or interests different from the form of instrument or interest which formed the basis for the original claims, including debt securities, equity securities, convertible securities, warrants, options, cash, interests in litigation claims or trusts formed to pursue such litigation claims, interests in liquidation trusts or other property or interests, any of which could be illiquid and/or difficult to value. Furthermore, the terms of instruments or interests distributed in a bankruptcy or insolvency proceeding may differ from prevailing market terms for similar instruments or interests, and may have a market value of less than par.

The Company may be presented with the opportunity to take new positions in connection with the reorganization or liquidation of an issuer of Portfolio Assets, including through a post-petition financing, equity or equity rights offering, litigation financing, bridge financing or other exit financing. The Company may take such positions as part of an in-court or out-of-court restructuring of an issuer of Portfolio Assets, and any such position will be subject to the same risks as other Portfolio Assets of the Company and others associated with past bankruptcy entities.

Contractual subordination provisions are generally enforceable when a company is in bankruptcy, as are most inter-creditor agreement terms. However, there are instances where creditors and equityholders may lose their ranking and priority when they take over management and functional operating control of a debtor. In those cases where the Company, by virtue of such action, is found to exercise "domination and control" of a debtor, the Company may lose its priority if the debtor or other creditors can demonstrate that the debtor's business was adversely impacted or other creditors and/or equityholders were harmed by improper or unfair actions of the Company, whether or not the Company is found to be a controlling party of the debtor. In addition, debt extended to a financially distressed company by an entity that owns an equity interest in the borrower may be recharacterized as having been an equity capital contribution, rather than a debt obligation.

Notwithstanding the corporate structure of various debtor entities, such as special purpose entities created to hold assets and to structure for bankruptcy remoteness, such entities may, in certain cases, be consolidated in bankruptcy proceedings, which can affect the outcome of such proceedings and the amounts ultimately received by creditors. In addition, if a claim can be asserted against only a corporate holding entity, such claim may be structurally subordinated to direct claims against an affiliated entity that owns assets directly.

Any one or more of the above factors could materially and adversely affect the value of, and return on, the Company's assets.

#### Changes in bankruptcy and insolvency laws may increase the risk of losses on the Company's positions.
The U.S. Bankruptcy Code and other laws and regulations affecting debtors' and creditors' rights are subject to change, including by way of legislative action or judicial interpretation. By way of example, in 2021, legislation was proposed (S. 3022, the Stop Wall Street Looting Act of 2021) that could impose additional risks of liability for the Company or its positions. As proposed, this legislation could make the Company jointly and severally liable for all liabilities of an asset, including debt, legal judgments, WARN Act violations and pension-related obligations and impose a statutory presumption that fraudulent transfers have occurred with respect to certain "change in control

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transactions" undertaken in the eight years before a bankruptcy filing. In addition, governmental actors have shown a willingness to intervene in bankruptcy-related matters, for example, the U.S. government's bailouts of General Motors and Chrysler, which may increase uncertainty regarding the enforcement of creditors' rights and the bankruptcy process generally. Any such actions could alter the expected outcome or timeline, or introduce greater uncertainty regarding the expected outcome of an asset of the Company, which may adversely affect such asset or the Company's program.

#### Non-U.S. bankruptcy and insolvency laws may increase the risk of losses on the Company's positions.
Portfolio Assets may include securities or obligations collateralized by assets located outside of the United States, or of issuers or guarantors organized under the laws of jurisdictions other than the United States. Similarly, issuers or guarantors of securities constituting Portfolio Assets may have a principal place of business, establishment or substantial assets or personnel located outside of the United States. As a result, such securities or obligations may be subject to bankruptcy or insolvency laws of non-U.S. jurisdictions. These laws may be substantially less favorable to creditors than the U.S. Bankruptcy Code, which may materially and adversely affect the Company's business, results of operations, financial condition and net worth.

***The Company faces risks arising from providing debtor-in-possession and rescue financing and could incur partial or total losses if the debtor fails to successfully restructure or reorganize or due to insufficient collateral or otherwise.***

The Company may support and/or participate in the provision of debtor-in-possession ("DIP") or rescue loans in implementing its strategy. A DIP or rescue loan may be needed to enable a financially distressed company to operate during a bankruptcy case or pending approval or completion of an acquisition or restructuring. A DIP loan is made to a debtor in bankruptcy and requires the approval of the bankruptcy court in which the case is pending. In the context of a DIP or rescue loan, the Company generally will obtain a secured and/or a priority claim against the debtor's assets that would permit the Company to foreclose on its collateral if the debtor fails to restructure or reorganize. In addition, if the Company wished to participate in the restructured or reorganized entity, it could agree to convert its loan into debt or equity interests issued in connection with the restructuring or reorganization. If the debtor fails to successfully restructure or reorganize, or if the assets pledged or charged as collateral for the Company's DIP or rescue loan are insufficient, the Company may not be able to recover the full amount lent to the debtor and may lose money.

#### The Company may be subject to claims under lender liability, equitable subordination and debt recharacterization theories.
Some judicial decisions in the United States have upheld the right of borrowers or their creditors to sue lending institutions on the basis of various evolving legal theories (collectively termed "lender liability"). Generally, lender liability is founded upon the premise that a lender has violated a duty, whether implied or contractual, owed to the borrower or has assumed a degree of control over the borrower resulting in creation of a fiduciary duty owed to the borrower or its other creditors or shareholders. In addition, courts have in some cases applied the doctrine of equitable subordination to subordinate a creditor's claim against a borrower to claims of other creditors of the borrower when the creditor is found to have engaged in unfair, inequitable or fraudulent conduct. There can be no assurance as to whether any fund, lending institution or other party from which the Company may directly or indirectly acquire such claims engaged in any such conduct and, if it did, as to whether the Company would be subject to claims that the Portfolio Assets should be equitably subordinated based on such conduct. Because of the nature of certain of the Portfolio Assets, the Company could be subject to allegations of lender liability or to claims that the Portfolio Assets should be equitably subordinated.

In addition, claims of creditors can be recharacterized as equity if a court determines that the terms of the debt or the creditor's actions in failing to enforce the debt evidence an intention to treat the debt as equity. Debt recharacterization is often based on multi-factor tests derived from tax court cases that afford a bankruptcy court considerable discretion to recharacterize and alter the status and enforceability of debt. Debt recharacterization is a greater risk in situations where a creditor, such as the Company, owns both equity and debt of an entity. Recharacterization could materially and adversely affect the value of the Company's assets.

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#### The Company's instruments are subject to fraudulent conveyance and preference considerations and thus involve heightened risk of loss.
Various federal and state laws enacted for the protection of creditors may apply to the purchase of the Portfolio Assets, transfers, payments or liens related thereto, by virtue of the Company's role as a creditor with respect to the borrowers under such Portfolio Assets. If a court, in a lawsuit brought by an unpaid creditor, a debtor-in-possession, a trustee in bankruptcy or their respective representatives, were to find that the debtor either (i) took any action to intentionally delay or frustrate exercise of creditor rights or (ii) (a) did not receive fair consideration or reasonably equivalent value for incurring indebtedness or the grant of any security interest or other lien securing such indebtedness and, (b) after giving effect to such indebtedness and/or grant of any security interest or other lien, the debtor (1) was insolvent, (2) was engaged in a business for which the remaining assets of such issuer constituted unreasonably small capital or (3) intended to incur, or believed that it would incur, debts beyond its ability to pay such debts as they mature, such court could, under certain circumstances, invalidate, in whole or in part, such indebtedness and such security interest or other lien as fraudulent conveyances, could subordinate such indebtedness to existing or future creditors of the debtor and could allow the debtor to recover amounts previously paid by the debtor to the creditor, including to the Company, in satisfaction of such indebtedness or proceeds of such security interest or other lien previously applied in satisfaction of such indebtedness.

The measure of insolvency for purposes of the foregoing will vary. Generally, an issuer or obligor would be considered insolvent at a particular time if the sum of its debts were then greater than all of its property at a fair valuation, or if the present fair saleable value of its assets were less than the amount that would be required to pay its probable liabilities on its existing debts as they became absolute and matured. There can be no assurance as to what standard a court would apply in order to determine whether the issuer or obligor was "insolvent" after giving effect to the incurrence of the indebtedness and/or the granting of any security interest or other lien or that, regardless of the method of valuation, a court would not determine that the issuer was "insolvent" upon giving effect to such incurrence of indebtedness and/or grant of security interests or other lien.

The Company may acquire bank debt or other indebtedness issued by a debtor which is guaranteed by other entities within the debtor's corporate family. In such circumstances, the debtor entity may own few or no assets other than the equity of its subsidiaries and, as a result, any recovery may be available only, if at all, from the entities that guaranteed the indebtedness. There is a risk, however, that the obligations of such guarantors and any security interests or other liens issued by the guarantors to secure such obligations may be avoided as fraudulent conveyances in the event that a court were to determine that such guarantors were financially impaired or insolvent and did not receive reasonably equivalent value in exchange for the issuance of the guarantees and for the security interests or other liens granted by the guarantors. A court could determine that the guarantors did not receive reasonably equivalent value or fair consideration in incurring the obligations or granting the security interests or other liens despite the existence of "indirect" benefits to the guarantors, such as the strengthening of the corporate enterprise in the transaction. In addition, provisions in guarantees and other similar documents governing similar obligations by which fraudulent conveyance exposure is sought to be reduced or eliminated, such as so-called "savings clauses," may not be enforceable. As a result, the Portfolio Asset in corporate bank debt or other indebtedness guaranteed by subsidiaries of a borrower could be subject to avoidance as a fraudulent conveyance.

If a transaction is found to have been a fraudulent conveyance, the transferee may be compelled to return the value of the assets transferred as of the time of the transfer, even if the then current value of the assets is substantially less. In addition, unless the transferee is deemed to be a "good faith" transferee, the return of the asset value may not even provide for reductions based on value provided by the transferee to the transferor.

In addition, in the event of the insolvency, as determined by a court based on the law of the jurisdiction which is being applied, of an issuer of a Portfolio Asset, payments made on the Portfolio Asset, management or similar fees paid to the Company or new liens granted, could be subject to avoidance as a "preference" if made within a certain period of time, which may be as long as one year, before a bankruptcy filing depending on a number of factors.

In general, if payments on a Portfolio Asset are avoidable, whether as a fraudulent conveyance or preference, such payments can be recaptured either from the initial recipient, such as the Company, or from subsequent transferees of such payments, potentially including Shareholders. In addition, if the grant of a security interest or other lien is avoidable, whether as a fraudulent conveyance or preference, the value of the security interest or other lien can be recovered from the initial transferee or the entity for whose benefit such transfer was made, such as the Company, and such recovery could include the diminution in value of the property which was subject to the security interest or other lien from the date of transfer.

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There can be no assurance that a successful cause of action for fraudulent conveyance or preference will not occur, or as to whether any fund, lending institution or other party from which the Company may directly or indirectly acquire a Portfolio Asset engaged in any conduct to give rise to such causes of action, and if it did, as to whether such causes of action could be asserted against the Company.

#### The Company faces portfolio company risk, especially with respect to those assets which are stressed, distressed, in special situations or otherwise experiencing financial difficulties.
The Company's Portfolio Assets, some of which are expected to be in stressed and distressed companies or represent "special situations", may involve a high degree of business and financial risk. See "*—Positions in stressed and distressed assets are speculative in nature and may incur significant or total losses for the Company.*" and "*—The Company may acquire or take positions in "special situations", which typically involve elevated risk due to, among other things, incomplete information and asymmetric risks*." Portfolio companies, including any Platform Company, may be in early stages of development, may have operating losses or significant variations in operating results and may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence. Portfolio companies, including any Platform Companies, will also include companies that are experiencing or are expected to experience financial difficulties, which may never be overcome. In addition, many of them will have weak financial conditions and may require substantial additional capital to support their operations, to finance expansion or to maintain their competitive positions. Portfolio companies, including any Platform Companies, may face intense competition, including competition from companies with greater financial resources, more extensive development, manufacturing, marketing and other capabilities and a larger number of qualified managerial and technical personnel. In addition, portfolio companies, including any Platform Companies, in which the Company expects to acquire may be required to comply with numerous U.S. and non-U.S. statutory and regulatory standards. A portfolio company, including any Platform Company, in which the Company acquires could be materially and adversely affected as a result of statutory or regulatory changes or changes in judicial or administrative interpretations of existing laws and regulations that impose more comprehensive or stringent requirements on such company, the markets in which such company operates or such company's industry generally.

There can be no assurance that a portfolio company's management team, including a Platform Company's management team, will be able to operate such company successfully. In addition, instances of fraud or other illegal practices committed by the management team of a portfolio company may undermine the Company's position in such portfolio company, or Platform Company, as applicable, and the Company may suffer losses. In addition, portfolio companies, including any Platform Companies, need to attract, retain and develop executives and members of their management teams. There can be no assurance that a portfolio company, including any Platform Company, will be able to attract, retain and develop suitable members of its management team, which may adversely and materially affect the Company.

#### The Company may incur contingent liabilities in connection with its acquisitions, which would involve a higher risk of loss.
The Company is expected to from time to time incur contingent liabilities in connection with an asset. For example, the Company may participate in one or more positions that are structured as "future funding" or "delayed-draws." If the borrower subsequently draws down on the delayed-draw facility, the Company would be obligated to fund the amounts due. However, there can be no assurance that an issuer will ultimately draw down on any such obligation, in which case the Company may never fund the position (in full or in part), which may result in the Company not fully deploying their committed capital. In addition, it is possible that a delayed-draw would be bifurcated by PIMCO into separate positions, with certain holders, which may or may not include the Company, participating in the initial drawdowns and other holders, which may or may not include the Company, participating in the later drawdowns. In this situation, it is possible that only those holders that participate in such position at the initial closing will benefit from any upfront fees or other original issue discount from such position. The Company is expected to also incur numerous other types of contingent liabilities. There can be no assurance that the Company will adequately reserve for its contingent liabilities and that such liabilities will not materially and adversely affect the Company's business, results of operations, financial condition and net worth.

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#### The Company faces certain risks related to Portfolio Asset monitoring and involvement as well as the related potential conflicts of interest.
The Company's strategy may from time to time enable it to place representatives on the creditors' or steering committees and/or the boards of directors of certain companies in which it has acquired. While such involvement may enable the Operating Manager to enhance the value of the Company's Portfolio Assets, it may also prevent the Company from freely disposing of such Portfolio Assets, while also exposing it to legal claims and adverse publicity, including claims of breach of duty of loyalty, securities claims and other management-related claims. In addition, if the Operating Manager's representatives are serving as directors of companies that are insolvent, such persons may have a fiduciary obligation to consider the interests of the creditors of such entity as well as the interests of the shareholders of such entity. The interests of such parties may be adverse to the interests of the Company. These fiduciary obligations may conflict with the Operating Manager's obligation to the Company, and the Operating Manager may cause its representatives to resign from such positions in order to reduce such conflicts. Any involvement by representatives of the Operating Manager, including through serving on a board of directors, or permanent or ad hoc creditors' or steering committees, may also entail a substantial time commitment, which may limit such representatives' ability to participate in other Company matters and its acquisitions.

#### The Company may acquire trade claims, which are speculative, illiquid and may be subject to transfer restrictions and carry a high degree of risk.
The Company may acquire in trade claims. Trade claims are purchased from creditors of companies in financial difficulty and often involved in bankruptcy proceedings, or from various third parties, including suppliers of goods or services, landlords and judgment creditors. For purchasers such as the Company, trade claims offer the potential for profits since they are often purchased at a significant discount from face value and, consequently, may generate capital appreciation in the event that the market value of the claim increases as the debtor's financial position improves or the claim is paid.

A position in trade claims is very speculative and carries a high degree of risk. Trade claims are illiquid instruments which generally do not pay interest and there can be no guarantee that the debtor will ever be able to satisfy the obligation on the trade claim. In addition, there can be restrictions on the purchase, sale and/or transferability of trade claims during all or part of a bankruptcy proceeding. The markets in trade claims are not regulated by federal securities laws or the SEC. The purchase and sale of trade claims are generally consummated by written contract between the parties and often contain customary language regarding the return of a portion of the purchase price in the event that all or a portion of the claim is disallowed or rejected. Because trade claims are typically unsecured, holders of trade claims may have a lower priority in terms of payment than certain other creditors in a bankruptcy proceeding. Further, the validity of trade claims may be challenged by a debtor or by other creditors and, if such challenge is successful, rejected in whole or in part, which may require the sellers to return a portion of the purchase price consideration, which may or may not have been paid by the seller.

***The Company may acquire or take positions in "special situations", which typically involve elevated risk due to, among other things, incomplete information and asymmetric risks.***

The Company is expected to take positions in "special situations," on a control or non-control basis, including recapitalizations, spinoffs, corporate and financial restructurings, acquiring or otherwise taking control of a pooled investment vehicle, such as a business development company, or its assets, litigation or other catalyst-orientated situations. Such positions are often difficult to analyze and subject to incomplete information and asymmetric risks. In any such opportunity, there exists the risk that the relevant transaction either will be unsuccessful, will take considerable time or will result in a distribution of cash or a new security the value of which will be less than the purchase price to the Company of the security or other financial instrument in respect of which such distribution is received, if any distribution is received. Similarly, if an anticipated catalyst produces an unanticipated result or does not in fact occur, the Company may choose to sell the Portfolio Asset at a loss or hold the Portfolio Asset and ultimately recover less than the amount of its initial cost of acquisition, if any amount is recovered at all. Any risk management strategies employed cannot fully insulate the Company from the risks inherent in its planned activities. Moreover, in certain situations, the Company may be unable to, or may choose not to, implement risk management strategies because of the costs involved or other relevant circumstances.

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#### The Company's acquisitions of equity securities may be subject to limited marketability and price volatility.
As with other Portfolio Assets, the value of equity securities held by the Company may be adversely affected by actual or perceived negative events relating to the issuer of such securities, the industry or geographic areas in which such issuer operates or the financial markets generally. However, equity securities may be even more susceptible to such events given their subordinate position in the issuer's capital structure. As such, equity securities generally have greater price volatility than fixed income securities, and the market price of equity securities owned by the Company is more susceptible to moving up or down in a rapid or unpredictable manner. In addition, equity securities often lose a significant amount of their value and may become worthless as a result of a bankruptcy proceeding, liquidation or reorganization.

#### The Company may acquire corporate debt, which may be sensitive to interest rates and expose the Company to other types of volatility.
The Company is expected to acquire a variety of bonds and related debt obligations of varying maturities issued by U.S. and non-U.S. companies, banks, savings and loan holding companies, insured depository institutions and other corporate entities. Corporate debt securities include bills, notes, debentures, money market instruments and similar instruments and securities, and are generally used by corporations and other issuers to borrow money from investors for such purposes as working capital or capital expenditures. The issuer pays the investor a variable or fixed rate of interest and normally must repay the amount borrowed on or before maturity. Certain bonds are "perpetual" in that they have no maturity date.

The return of corporate debt securities reflects interest earnings, changes in the market value of the security and the expected principal recovery amount. The market value of a corporate debt obligation may be expected to rise and fall inversely with interest rates generally. Debt securities with longer maturities tend to be more sensitive to interest rate movements than those with shorter maturities. In addition to interest rate risk, corporate debt securities also involve the risk that the issuers of the securities may not be able to meet their obligations on interest or principal payments at the time called for by an instrument. The rate of return or return of principal on some debt securities may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies. Corporate debt securities are subject to the risk of the issuer's inability to meet principal and interest payments on the obligation and may also be subject to price volatility due to such factors as interest rate sensitivity, market perception of the creditworthiness of the issuer and general market liquidity.

#### The Company may acquire high yield debt and unrated securities, which have greater credit and liquidity risk than more highly rated assets.
High yield securities are typically junior to the obligations of companies to senior creditors, trade creditors and employees, in particular with respect to the value of any assets pledged as collateral for such obligation. High yield securities and unrated securities, which are not rated by a rating agency, may be more susceptible to real or perceived adverse economic and competitive industry conditions than investment-grade securities. A projection of an economic downturn or of a period of rising interest rates, for example, could cause a decline in the prices of high yield securities and unrated securities, because the advent of a recession could lessen the ability of an issuer to make principal and interest payments on its debt obligations. In addition, such securities have historically experienced greater default rates than investment grade securities. The ability of holders of high yield debt to influence a company's affairs is often substantially less than that of senior creditors, especially during periods of financial distress or following insolvency.

As with other Portfolio Assets, there may not be a liquid market, if there is any market, for certain high yield debt which is held by the Company, which could result in the Company being unable to sell such securities for an extended period of time, if at all. In addition, as with other types of Portfolio Assets, the market for high yield debt has historically been subject to material disruptions that have caused substantial volatility in the prices of such securities. Consolidation in the financial services industry has resulted in there being fewer market makers for high yield debt, which may result in further risk of illiquidity and volatility with respect to high yield debt held by the

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Company, and this trend may continue in the future. Furthermore, high yield debt which is held by the Company is unlikely to be registered under the Securities Act, and, unless so registered, the Company will not be able to sell such high yield debt except pursuant to an exemption from registration under the Securities Act. Unrated securities may be less liquid than comparable rated securities and may also involve the risk that the Operating Manager may not accurately evaluate the security's comparative credit rating.

Analysis of creditworthiness of issuers of high yield and unrated securities may be more complex than for issuers of higher-quality fixed income securities. Since it is expected that most of the Company's assets will not be rated by any rating agency or will be rated below investment grade, the Company will be more dependent on the Operating Manager's creditworthiness analysis than if the Company acquired exclusively in higher-quality and rated securities. See "*—There is no restriction on credit quality for Company acquisitions of debt instruments and the amount and timing of payments with respect to loans are not guaranteed, which may cause losses.*" above.

#### Bank loans and corporate loans may not be readily marketable and may be subject to resale restrictions and other risks.
Bank loans and corporate loans, which the Company or its affiliates is expected to acquire or otherwise gain exposure to, may not be readily marketable and may be subject to restrictions on resale. In some cases, negotiations involved in disposing of indebtedness may require weeks or months to complete. Consequently, some indebtedness may be difficult or impossible to dispose of readily at what the Operating Manager believes to be a fair price. In addition, bank loans and corporate loans are often less liquid than other types of debt securities, particularly in times of significant market dislocation. Loans to SMEs and similar loans may involve certain heightened risks.

Holders of bank loans, corporate loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the corporate or other borrower for payment of principal and interest. If the Company does not receive scheduled interest or principal payments on such indebtedness, the value of the Company's positions could be adversely affected. The Company is expected to acquire secured and unsecured bank loans and corporate loans. Bank loans and corporate loans that are secured may offer the Company more protection than an unsecured loan in the event of non-payment of scheduled interest or principal. However, there is no assurance that the liquidation of any collateral from a secured bank loan or corporate loan would satisfy the borrower's obligation, or that such collateral could be liquidated. In the event of the bankruptcy of a borrower, the Company could experience delays or limitations in its ability to realize the benefits of any collateral securing a loan and could be compelled to accept new instruments or interests in respect of its claims under the bank loan in a plan of reorganization. These new instruments or interests may be on terms different from prevailing market terms for similar instruments and interests.

Bank loans usually require, in addition to scheduled payments of interest and principal, the prepayment of the bank loan from free cash flow. The degree to which borrowers prepay bank loans, whether as a contractual requirement or at their election, may be affected by general business conditions, the financial condition of the borrower and competitive conditions among lenders, among others. As such, prepayments cannot be predicted with accuracy. Upon a prepayment, either in part or in full, the actual outstanding debt on which the Company derives interest income will be reduced. The effect of prepayments on the Company's performance may or may not be mitigated by the receipt of prepayment fees and/or the Company's allocation of prepayments in other bank loans that have similar or identical yields.

The Company may purchase "assignments" of bank loans from lenders. The purchaser of an assignment typically succeeds to all the rights and obligations under the loan agreement with the same rights and obligations as the assigning lender. Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. See "*—Risks Related to Regulatory Matters*."

The Company may also acquire "participations" in bank loans. Participations by the Company in a lender's portion of a bank loan typically will result in the Company having a contractual relationship only with such lender, not with the borrower. As a result, the Company may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by such lender of such payments from the borrower. In connection with purchasing participations, the Company generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights with respect to any funds acquired by other lenders through set-off against the borrower, and the Company may not directly benefit from any collateral supporting the bank loan in which it has purchased the participation. As a result, the Company assumes the credit risk of both the borrower and the lender selling the participation.

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In many cases bank loans and loan participations would not be deemed to be securities for purposes of U.S. federal and/or state securities laws. As a result, a position in bank loans would not be afforded the same protections as a position in securities, such as the extensive disclosure requirements under U.S. federal and/or state securities laws, which may adversely impact the Company's ability to seek recourse in respect of such positions.

#### The Company faces risks related to holding mortgages or other consumer loans, including, among others, risk of prepayment, delinquency, default and foreclosure.
The Company may hold or be exposed to, such as through a Structured Instrument (as defined below), mortgage loans and consumer loans, such as credit card receivables, automobile loans, student loans, peer-to-peer loans, unsecured consumer credit loans or other loans. These loans are subject to risks of prepayment, delinquency, default, foreclosure and other risks similar to those present in mortgage loans. The ability of a borrower to repay any such loan is dependent on a number of factors, including the income and assets of the borrower. The Company may acquire loans that have been made to borrowers of varying creditworthiness, and it may acquire loans that have been extended pursuant to varying underwriting guidelines, to no underwriting guidelines at all, or to fraudulent origination practices. Such loans are also subject to extensive and unpredictable regulation as well as debtor relief laws, which may impede collection efforts relating to, or otherwise impact the value of, the Company's positions therein. Consumer loans may be backed by collateral, as in automobile loans, or they may be unsecured, exposing the Company to default risk as an unsecured creditor of an individual borrower.

Congress, regulators such as the U.S. Consumer Financial Protection Bureau (CFPB) and the individual states may further regulate the consumer credit industry in ways that make it more difficult for servicers of such loans to collect payments on such loans, resulting in reduced collections. Such laws and regulations may, among other things, regulate interest rates and other charges, require certain disclosures, regulate the use of consumer credit information and regulate debt collection practices. Violation of certain provisions of these laws and regulations may limit a servicer's ability to collect all or part of the principal of, or interest on, such loans, entitle the borrower to a refund of amounts previously paid by it, or subject the servicer to damages and sanctions. Changes to federal or state bankruptcy or debtor relief laws may also impede collection efforts or alter timing and amount of collections. If an obligor sought protection under federal or state bankruptcy or debtor relief laws, a court could reduce or discharge completely the obligor's obligations to repay amounts due on its loan.

Risks specific to different categories of consumer loans may affect the Company's return on such positions. In the case of credit card loans, for example, various and unpredictable social, economic and geographic factors may affect the payment patterns and rates of default by borrowers, including consumer confidence and attitudes toward debt, rates of inflation and unemployment and prevailing interest rates. Rates of prepayment and default on student loans will similarly vary based on a number of factors, but will also be affected by contractual terms present in such loans, including the extension of grace periods, deferment periods and, under some circumstances, forbearance periods. The Operating Manager cannot predict how these and other factors may affect the Company's positions in consumer loans.

#### The Company faces risks associated with acquiring residential mortgage loans, including, among others, the risk of default, delinquency or foreclosure.
The Company expects to hold or, either directly or through assets such as CDOs and RMBSs, be exposed to residential mortgage loans. Residential mortgage loans are secured by residential property and are subject to risks of delinquency and foreclosure and risks of loss. The ability of a borrower to repay a loan secured by a residential property is dependent upon various factors, including the income or assets of the borrower. If a residential mortgage loan is in default, foreclosure of such residential mortgage loan may be a lengthy and difficult process and may involve significant expenses. The ultimate disposition of a foreclosed property may yield a price insufficient to cover the cost of the foreclosure process and the balance attached to the defaulted mortgage loan. The Company is expected to hold or acquire RMBS backed by non-prime or sub-prime residential mortgage loans, which are subject to higher delinquency, foreclosure and loss rates than prime residential mortgage loans, which could result in higher losses to

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the Company. Non-prime and sub-prime residential mortgage loans are made to borrowers who have poor or limited credit histories and, as a result, do not qualify for traditional mortgage products. In addition, these loans may have been extended pursuant to varying underwriting guidelines, to no underwriting guidelines at all or to fraudulent origination practices. Because of the poor, or lack of, credit history, non-prime and sub-prime borrowers have materially higher rates of delinquency, foreclosure and loss, all else being equal, compared to prime credit quality borrowers. There is limited history with respect to the performance of RMBS backed by residential mortgage loans over various economic cycles. Positions in non-prime and sub-prime RMBS backed by non-prime or sub-prime residential mortgage loans and derivatives transactions that reference non-prime or sub-prime RMBS, all else being equal, have higher risk than acquiring RMBS backed by prime residential mortgage loans.

***Due to the long holding period and other unique characteristics often associated with land banking positions, the Company faces heightened entitlement and other regulatory risks.***

The Company is expected to participate in transactions involving the acquisition of undeveloped land for residential or commercial land banking purposes. In addition to risks associated with real estate development, due to the long-term holding period often associated with land banking positions, entitlement and other regulatory risks may be heightened. Further, until the disposition or development of such undeveloped land, the Company would not realize any income from such land banking positions. Undeveloped land is also a highly illiquid asset, and the Company may not be able to dispose of undeveloped land when desired due to various changes in market conditions.

#### The Company's origination and syndication of certain assets are subject to market competition and supply of qualifying loans, which could reduce the Company's returns.
The Company or its affiliates intend to originate certain assets and may syndicate a portion of one or more assets to other affiliated funds or third parties, subject to the completion of each such purchaser's own review process. In originating and purchasing loans, the Company competes with a broad spectrum of lenders, some of which may have greater financial resources than the Company. Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on such loans, which could reduce returns to the Company. Prior to any syndication of such loans, or if such syndication is not successful, the Company's exposure to the originated asset may exceed the exposure that the Company intends to have over the long-term or would have had if it had purchased such asset in the secondary market rather than originating it. Specifically, if the Company is unable to sell, assign or successfully close transactions for the loans that it originates, the Company will be forced to hold its interest in such loans for an indeterminate period of time. This could result in the Company being over-concentrated in certain borrowers. In such circumstances, the Company may elect to sell all or a portion of an originated asset at a loss in order to rebalance the Company's portfolio.

The level of analytical sophistication, both financial and legal, necessary for successful financing to companies, particularly companies experiencing significant business and financial difficulties is unusually high. There is no assurance that the Operating Manager will correctly evaluate the value of the assets collateralizing the Company's loans or the prospects for successful repayment or a successful reorganization or similar action.

#### The Company faces risks based on its ability to acquire loans on advantageous terms and competition and supply.
The Company's success depends, in part, on the ability of the Company or its affiliates to purchase loans on advantageous terms. In purchasing loans, the Company or its affiliates will compete with a broad spectrum of lenders. Increased competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on such loans, which could reduce returns (if any) to investors.

***The Company faces risks associated with owning convertible securities, which may be subject to redemption at the option of the issuer at a price established in the convertible security's governing instrument.***

Convertible securities generally offer lower interest or dividend yields than non-convertible debt securities of similar quality. The market values of convertible securities tend to decline as interest rates increase and, conversely, to increase as interest rates decline. However, a convertible security's market value tends to reflect the market price of the common stock of the issuing company when that stock price approaches or is greater than the convertible

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security's "conversion price." The conversion price is defined as the predetermined price at which the convertible security could be exchanged profitably for the associated stock. As the market price of the underlying common stock declines, the price of the convertible security tends to be influenced more by the yield of the convertible security. Thus, it may not decline in price to the same extent as the underlying common stock. Generally, in the event of a liquidation of the issuing company, holders of convertible securities would be paid before the company's common stockholders but after holders of any debt obligations of the company. Consequently, the issuer's convertible securities generally entail less risk than its common stock but more risk than its debt obligations. There is also a risk that, under certain circumstances, a bankruptcy court may order that convertible securities are treated as equity.

The Company may acquire synthetic convertible securities, which are created through a combination of separate securities that possess the two principal characteristics of a traditional convertible security, such as an income-producing security ("income-producing component") and the right to acquire an equity security ("convertible component"). The income-producing component is achieved by purchasing a non-convertible, income-producing securities, such as bonds, preferred stocks and money market instruments. The convertible component is achieved by purchasing warrants or options to buy common stock at a certain exercise price, or options on a stock index. The values of synthetic convertible securities will respond differently to market fluctuations than a traditional convertible security because a synthetic convertible is composed of two or more separate instruments, each with its own market value. Synthetic convertible securities are also subject to the risks associated with derivatives. In addition, if the value of the underlying common stock or the level of the index involved in the convertible element falls below the strike price of the warrant or option, the warrant or option may lose all value.

#### The Company may be subject to macroeconomic risk factors affecting financial entities, including economic and political conditions, market trends, capital requirements and regulation.
Banking Portfolio Assets and other financial institutions (collectively, "Financial Entities") generally have asset and liability structures that are essentially monetary in nature and are directly affected by many factors, including, among others, domestic and international economic and political conditions, broad trends in business and finance, legislation and regulation affecting the local, national and international business and financial communities, including the Dodd-Frank Act as discussed below, monetary and fiscal policies, interest rates, inflation, currency values, market conditions, the availability and cost of short-term or long-term funding and capital, the credit capacity or perceived creditworthiness of customers and counterparties and the level and volatility of trading markets. Such factors can affect customers and counterparties of banking entities and may affect the value of financial instruments held by banking entities. Fluctuations in interest rates, which affect the value of assets and the cost of funding liabilities, are not predictable or controllable and may affect economic activity in various regions or could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

#### The Company faces competitive conditions in the financial services industry.
The financial services industry is extremely competitive, and it is expected that competitive conditions in the industry will continue to intensify. Merger activity in the financial services industry has resulted in larger institutions with greater financial and other resources that are capable of offering a wider array of financial products and services. The financial services industry has become considerably more concentrated as numerous financial institutions have been acquired by or merged into other institutions. In addition, technological advances and the growth of e-commerce have made it possible for non-financial institutions to offer competing products and services that have been traditionally offered by financial services institutions. It is expected that cross-industry competition will continue to grow. As a result, the competitive position of the Financial Entities in which the Company holds positions could be weakened, which could adversely affect the Company.

#### The Company also faces operational risks associated with the financial services industry.
The financial services industry is highly dependent on communications and information systems and is exposed to many types of operational risk, including the risk of fraud by employees or other parties, recordkeeping error, errors resulting from faulty computer or telecommunication systems, computer failures and damage to computer and telecommunication systems caused by internal or external events. The occurrence of any of these failures, errors or breaches could result in a loss of information, business or regulatory scrutiny, or other events, any of which could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

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A concentration of loans in a primary market area may increase risk. The Company's success may depend on the general economic conditions in the area in which any future target bank in which the Company holds positions may have a concentration of branches. The local economic conditions in such areas may have a significant impact on the ability of borrowers to repay loans. As such, a decline in real estate valuations in this market would lower the value of the collateral securing those loans. In addition, a significant weakening in general economic conditions, such as inflation, recession, unemployment, vacancy rates or other factors beyond the Company's control, could negatively affect the Company.

#### The Company faces risks associated with banking, which is a highly leveraged business.
While banking entities are subject to minimum capital standards, nonetheless, banking remains a highly leveraged business. The liabilities of banks, consisting primarily of deposit liabilities, are typically many multiples of the Shareholders' equity. In addition, many of the assets of banks are not highly liquid. Accordingly, declines in asset values, increases in the cost of liabilities, the inability to maintain adequate liquidity or a multitude of other factors can adversely affect the Company.

#### The Company's acquisitions may be subject to state banking regulations.
State-chartered banks and thrifts are subject to state as well as federal supervision and regulation. In general, most state bank and thrift supervision and regulation is similar to its federal counterparts. However, in some instances, state regulation and supervision may be more onerous and restrictive, and cost more to comply with, than the corresponding federal regulation and supervision.

#### The Company's acquisitions may be subject to other bank and thrift-related laws and regulations.
In addition to laws and regulations that affect businesses in general, banks and thrifts are subject to a number of federal and state laws and regulations that may have a material impact on their business. These include, among others, state usury laws, state laws relating to fiduciaries, the Truth-in-Lending Act, the Truth-in-Savings Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Expedited Funds Availability Act, the Home-Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Uniting and Strengthening America By Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 and the Bank Secrecy Act and the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Regulation issued thereunder by the U.S. Department of the Treasury ("Treasury"), electronic funds transfer laws, redlining laws, antitrust laws, environmental laws and privacy laws. Violation of any of these laws could result, in addition to serious reputational and other negative consequences, in significant fines and penalties to banks and their directors and officers and could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

#### The Company's acquisitions may be subject to foreign bank or financial company-related laws and regulations.
The Company is expected to acquire banks or financial companies located outside the United States ("Foreign Financial Entities"). Foreign Financial Entities are subject to the laws and regulations of their jurisdictions of incorporation as well as the laws and regulations of other jurisdictions in which they conduct business or own assets. Such laws and regulations may, among other things, result in the Company being subject to lock-up periods, heightened regulatory oversight or increased reporting requirements or compliance costs. Changes in foreign laws or regulations may reduce the profitability of the Company's assets in Foreign Financial Entities or require the Company to reduce its stake in or divest itself entirely from Foreign Financial Entities. Failure to comply with existing or future foreign laws or regulations could result in significant fines and penalties to Foreign Financial Entities and their directors and officers and could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

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***The Company faces risks associated with ownership of restricted securities, including reduced liquidity, infrequent and reduced trades, less available information, difficulty in valuation and trading restrictions.***

It is expected that a significant portion of the Company's Portfolio Assets are securities ("restricted securities") that have not been registered for sale to the public under the Securities Act pursuant to an exemption from registration, including, for example, Section 4(a)(2) of, or Rule 144A under, the Securities Act. Restricted securities are generally only sold to institutional investors in private sales from the issuer or from an affiliate of the issuer. These securities may be less liquid than securities registered for sale to the general public. The liquidity of a restricted security may be affected by a number of factors, including: (i) the credit quality of the issuer; (ii) the frequency of trades and quotes for the security; (iii) the number of dealers willing to purchase or sell the security and the number of other potential purchasers; (iv) dealer undertakings to make a market in the security; and (v) the nature of the security and the nature of marketplace trades. Also, restricted securities may be difficult to value because market quotations may not be readily available.

In addition, a debtor in a bankruptcy or reorganization case may be granted a trading restriction order by a bankruptcy court in order to protect such debtor's tax attributes, such as net operating losses (a "NOL Order"). Such an order may prohibit or severely restrict the ability of some creditors and equityholders to sell their claims and interests in the debtor. The Company's ability to transfer its interests in such a debtor may be impaired, delayed or prohibited as a consequence of a NOL Order. The Company may also incur added expenses if it attempts to challenge or limit the scope of a NOL Order, and such an attempt may not be successful. Similarly, issuers with net operating losses sometimes adopt shareholder rights plans or similar arrangements in order to preserve the ability to utilize such net operating losses in the future; any such actions could also limit or otherwise adversely impact the Company's ability to transfer or dispose of its interests in any such issuer.

***Because of the Company's interest in zero-coupon bonds, deferred interest rate bonds and payment-interest securities, the Company may face outsized impacts from interest rate fluctuations and other credit risks which may be beyond the control of the Company.***

Zero-coupon bonds pay interest only at maturity rather than at intervals during the life of the security. Deferred interest rate bonds generally provide for a period of delay before the regular payment of interest begins. Payment-in-kind securities ("PIKs") are debt obligations that pay "interest" in the form of other debt obligations, instead of in cash. Each of these instruments is normally issued and traded at a deep discount from face value. Zero-coupon bonds, deferred interest rate bonds and PIKs allow an issuer to avoid or delay the need to generate cash to meet current interest payments and, as a result, may involve greater credit risk than bonds that pay interest currently or in cash. The market value of such securities is often more volatile than that of non-zero coupon fixed income securities of comparable quality and maturity. This volatility stems from the fact that such securities are particularly sensitive to downward pricing pressures from rising interest rates or widening credit spreads and may require the Company to recognize income without receiving cash payments.

#### The Company faces interest-rate risks associated with ownership of inflation-indexed bonds.
Inflation-indexed bonds, other than municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, as described below, are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of inflation-indexed bonds, other than municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, will be adjusted downward, and consequently the interest payable on these securities, calculated with respect to a smaller principal amount, will be reduced. Repayment of the original bond principal upon maturity as adjusted for inflation is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.

The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates are tied to the relationship between nominal interest rates and the rate of inflation. If nominal interest rates increase at a faster rate than inflation, real interest rates may rise, leading to a decrease in the value of inflation-indexed bonds.

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#### The Company faces volatility and other unanticipated risks, including, among others, counterparty and credit risk, associated with ownership of event-linked instruments.
The Company is expected to obtain event-linked exposure by acquiring "event-linked bonds" or "event-linked swaps" or by implementing "event-linked strategies." Event-linked exposure results in gains or losses that typically are contingent or formulaically related to defined trigger events. Examples of trigger events include hurricanes, earthquakes, weather-related phenomena or statistics relating to such events. Some event-linked bonds are commonly referred to as "catastrophe bonds." If a trigger event occurs, the Company may lose a portion of its entire principal used to acquire the bond or notional amount on a swap. Event-linked exposure often provides for an extension of maturity to process and audit loss claims where a trigger event has, or possibly has, occurred. An extension of maturity may increase volatility. Event-linked exposure may also expose the Company to certain unanticipated risks including credit risk, counterparty risk and adverse regulatory or jurisdictional interpretations. Event-linked exposures may also be subject to liquidity risk.

***The Company's potential acquisitions of term loans, delayed draw loans, revolvers and bridge loans may require the Company to increase its position even if repayment is unlikely, and such acquisitions may be difficult to transfer or resell.***

The Company is expected to acquire a variety of different types of debt, including but not limited to term loans, delayed draw term loans, bridge loans and revolving loans. A term loan is a loan that has a specified repayment schedule. A delayed draw loan is a loan that typically permits the borrower to withdraw predetermined portions of the total amount borrowed at certain times. A revolving credit facility differs from a delayed draw loan in that as the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term of the revolving credit facility. Delayed draw loans and revolving credit facilities usually provide for floating or variable rates of interest. If the Company enters into or acquires a commitment with a borrower regarding a delayed draw loan or a revolver, the Company will be obligated on one or more dates in the future to lend the borrower monies, up to an aggregate stated amount, if called upon to do so by the borrower. These commitments may have the effect of requiring the Company to increase its position in a borrower at a time when it might not otherwise decide to do so, including at a time when the company's financial condition makes it unlikely that such amounts will be repaid. Delayed draw loans and revolvers may be subject to restrictions on transfer, and only limited opportunities may exist to resell such instruments. As a result, the Company may be unable to sell such instruments at an opportune time or may have to resell them at less than fair market value.

The Company may make bridge loans to borrowers with the expectation of a subsequent refinancing or sell down. For reasons not always in the Company's control, such refinancing or sell down may not occur, which would result in the bridge loan remaining outstanding longer than anticipated. In such event, the Company may have more risk associated with such instruments or a larger overall position in the borrowers and/or market sector than originally anticipated.

***The Company faces risks associated with participation on committees formed by creditors, including restrictions on disposing Portfolio Assets and exposure to legal claims and adverse publicity.***

While the Company has no obligation to do so, it may participate on committees formed by creditors to negotiate the management or potential restructuring of financially troubled companies that may or may not be in bankruptcy, or the Company may seek to negotiate directly with the debtors with respect to restructuring issues. See "*—The Company may have control positions in certain portfolio companies, which may expose the Company to additional liabilities and other legal risks and burdens*" above. If the Company does join a committee formed by creditors, the participants on the committee would be interested in obtaining an outcome that is in their respective individual best interests or the interests of the constituency that the committee represents and there can be no assurance of obtaining results most favorable to the Company in such proceedings. While such involvement may enable the Operating Manager to enhance the value of the Company's Portfolio Assets, it may also prevent the Company from freely disposing of such Portfolio Assets, while also exposing it to legal claims and adverse publicity, including claims of breach of fiduciary duties, securities claims and other management-related claims. In addition, if the Operating Manager's representatives are serving as directors of companies which are insolvent, such persons may have fiduciary obligations to consider the interest of creditors of such entity as well as the shareholders of such entity. The interests of such parties may be adverse to the interests of the Company. These fiduciary obligations may conflict with the

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Operating Manager's obligation to the Company, and the Operating Manager may cause its representatives to resign from such positions in order to reduce such conflicts. Any involvement by representatives of the Operating Manager, including through serving on a board of directors, or permanent or ad hoc creditors' or steering committees, may also entail a substantial time commitment, which may limit such representatives' ability to participate in other Company matters and assets.

The Company may be provided with material non-public information that may restrict its ability to trade in the company's securities or be subject to other limitations on trading. Conversely, the Company may trade in the company's securities while engaged in the company's restructuring activities, which creates a risk of litigation and liability that may cause the Company to incur significant legal fees and potential losses. As the Company will typically indemnify any person serving on a committee on its behalf, indemnification payments could adversely affect the return on the Company's position in a portfolio company. In certain cases, the Company may not be permitted to serve on a committee even where it would desire to do so as a result of the Company's holdings of other securities of an issuer or may decline to serve because of these or other conflicts.

#### The Company faces risks associated with acquiring secondary instruments, including incomplete information and the reduced ability to negotiate the structure of such instrument.
The Company may acquire assets other than at original issue, including secondary debt ("Secondary Instruments"). In many cases, the economic, financial and other information available to and utilized by the Operating Manager in selecting and structuring Secondary Instruments may be incomplete or unreliable. The Company may also not have the opportunity to negotiate the terms of Secondary Instruments, and such instruments may therefore not include covenants and protections generally sought when the Company makes its primary Portfolio Assets. For example, certain debt instruments (so-called "covenant lite" deals) often imposed less stringent covenants on the borrowers of such debt instruments than the covenants the Company expects to include for loans acquired by the Company or its affiliates. Many "covenant lite" debt instruments issued during that time period may not obligate such Portfolio Assets to observe and maintain financial maintenance covenants, such as covenants requiring issuers to comply with a maximum leverage ratio, a minimum interest or fixed charge coverage ratio or maximum capital expenditures. Ownership of covenant lite instruments may expose the Company to different risks, including with respect to liquidity, price volatility and ability to restructure loans, than is the case with loans that have such requirements and restrictions. As a result of the exposure to covenant lite instruments, the Company's losses may be increased, which could result in an adverse impact on the Company's ability to make distributions. Even if such covenants and protections are included in the instruments held by the Company, the terms of the instruments may provide such Portfolio Assets substantial flexibility in determining compliance with such covenants.

Moreover, the purchase price of Secondary Instruments will be subject to negotiation with the sellers of such interests and may, in certain cases, include the Company's assumption of certain contingent liabilities. The overall performance of the Company may depend in part on the accuracy of the information available to the Operating Manager, the acquisition price paid by the Company for the Secondary Instruments and the structure of such acquisitions and the Company's ultimate exposure to any assumed liabilities.

The Company may have the opportunity to acquire a portfolio of Secondary Instruments from a seller on an "all or nothing" basis. Certain of the Secondary Instruments in the portfolio may be less attractive than others, and certain of the sponsors of such Secondary Instruments may be more familiar to the Operating Manager than others, or may be more experienced or highly regarded than others. In such cases, it may not be possible for the Company to exclude from such purchases those instruments which the Operating Manager considers, for commercial, tax, legal or other reasons, less attractive.

#### Residential mortgage servicing state license requirements may materially and adversely affect the Company.
State mortgage finance licensing laws vary considerably. Many of the mortgage licensing laws impose a licensing obligation to service residential mortgage loans. Certain state collection agency licensing laws require entities collecting on delinquent or defaulted loans for others or acquiring such loans to be licensed. Failure to obtain and maintain the appropriate state licenses, or to qualify for the appropriate exemptions, could materially and adversely affect the Company's positions to the extent the Company seeks to engage in loan servicing activities directly or has a financial interest in a servicer.

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#### The Company faces interest-rate risk, which may cause changes in prepayment rates and lead to reduced returns or losses.
Changes in prepayment rates could reduce the value of mortgage loans directly held by the Company or underlying a security held by the Company. In the case of residential mortgage loans, there are seldom any restrictions on borrowers' abilities to prepay their loans. Homeowners tend to prepay mortgage loans faster when interest rates fall. Consequently, owners of the loans have to reinvest the money received from the prepayments at the lower prevailing interest rates. Conversely, homeowners tend not to prepay mortgage loans when interest rates rise. Consequently, owners of the loans are unable to reinvest money that would have otherwise been received from prepayments. This volatility in prepayment rates may impair the Company's ability to maintain targeted amounts of leverage on its portfolio and result in reduced earnings or losses and reduce the availability of cash.

#### Loans secured by lower quality collateral may have higher default and other risks.
There are no restrictions on the credit quality of the properties and/or other collateral securing the Company's loans. While the Company may seek to over-collateralize loans secured by properties that it deems to be of lesser quality, loans arranged by the Company may nonetheless have exposures to default in payment of interest and/or principal due to risks relating to such properties, and the market values of such properties also tend to be more sensitive to changes in economic conditions than better quality properties.

#### The Company's business may be affected by prepayment, which could reduce the assets which the Company acquires.
The terms of loans which the Company acquires may be subject to early redemption features, refinancing options, prepayment options or similar provisions which, in each case, could result in the issuer repaying the principal on an obligation held by the Company earlier than expected, either with or without a prepayment premium. This may happen when there is a decline in interest rates, when the borrower's improved credit or operating or financial performance allows the refinancing of certain classes of debt with lower cost debt. Assuming an improvement in the credit market conditions, early repayments of the obligations held by the Company could increase. The yield of the Company's assets may be affected by the rate of prepayments differing from the Operating Manager's expectations. In addition, there is no assurance that the Company will be able to re-deploy proceeds received from prepayments in assets that satisfy its objectives, and any delay in re-deploying such proceeds may materially affect the performance of the Company. Conversely, delays in prepayment may postpone distributions to Shareholders. Furthermore, changes in prepayment rates could reduce the value of loans directly held by the Company or underlying a security held by the Company, and volatility with respect to prepayment risks may impair the Company's ability to maintain targeted amounts of leverage on its portfolio and result in reduced earnings or losses and reduce the availability of cash.

#### The Company's exit strategies for its assets are uncertain.
Due to the less liquid nature of most of the assets which the Company is expected to acquire, the Operating Manager is unable to predict with confidence what the exit strategy will ultimately be for any given position, or that one will definitely be available. Exit strategies which appear to be viable when an asset is initiated may be precluded by the time the asset is ready to be realized due to economic, legal, political or other factors.

***The Company's business is subject to the risk that any obligations arising from an asset may be modified contrary to the preferences of the Company.***

The terms and conditions of loan agreements and related assignments generally may be amended, modified or waived only by the agreement of the lenders. Generally, any such agreement must include a majority or a super majority, measured by outstanding loans or commitments, or, in certain circumstances, a unanimous vote of the lenders. Consequently, the terms and conditions of the payment obligation arising from Portfolio Assets could be modified, amended or waived in a manner contrary to the preferences of the Company if a sufficient number of the other lenders concurred with such modification, amendment or waiver. There can be no assurance that any obligations arising from a Portfolio Asset will maintain the terms and conditions to which the Company originally agreed.

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***The Company faces default and foreclosure risks, among others, on the mortgage loans it acquires, which may lead to reduced returns or a total loss of capital.***

The Company is expected to acquire loans, or securities backed by loans, that may be at the time of their acquisition, or may become after origination or acquisition, non-performing loans. By their nature, these assets can involve a high degree of financial risk, and there can be no assurance that the Company's return objectives will be realized or that there will be any return of capital. In the event of any default under a loan directly held by the Company or a loan underlying a security held by the Company, the Company will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the loan, which could materially and adversely affect the Company's business, results of operations, financial condition and net worth. Other non-performing loans may require workout negotiations and/or restructuring, which may entail, among other things, a substantial reduction in the interest rate, capitalization of interest payments and/or a substantial write-down of the original principal amount of such loans. Further, even if a restructuring were successfully accomplished, unless the restructuring provided for full amortization on or prior to maturity and the borrower strictly complied with that restructuring, a risk exists that upon maturity of such loans, replacement financing will not be available and such loans may not be repaid. In the event of the bankruptcy of a borrower, the loan to that borrower will be deemed to be secured only to the extent of the value of the underlying collateral at the time of bankruptcy, as determined by the bankruptcy court, the lien securing the loan will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law, and realizing any value under such circumstances can be an expensive and lengthy process that could have a substantial negative effect on the anticipated return on the loan and on the security backed by such loan. Other risks attendant to a bankruptcy filing are described above. The foregoing statement does not apply in the context of a borrower insolvency case commenced under chapter 13 of the U.S. Bankruptcy Code where the underlying collateral is used as the principal residence of the borrower, but in such instances, the lender will nonetheless be stayed from the collection of its claim, taking possession of the collateral and enforcing its lien unless and until the lender obtains relief from the automatic stay under the U.S. Bankruptcy Code.

It is possible that the Operating Manager may find it necessary or desirable to foreclose on collateral securing one or more loans purchased by the Company. The foreclosure process varies by jurisdiction and can be expensive and lengthy, which could have a substantial negative effect on the Company's anticipated return on the foreclosed mortgage loan, and may be adversely affected by the operation of state law governing the foreclosure process as well as other creditor's rights provided in the governing loan instruments. Inadequate documentation of loans or assignments of loans and erroneous or incomplete recordkeeping with respect to loans that were formerly securitized in loan pools may impair the Company's ability to foreclose on collateral securing loans. Borrowers often resist foreclosure actions by asserting numerous claims, including lender liability claims, and may also file for bankruptcy at any time during the foreclosure process. The foreclosure process also tends to create a negative public image of the collateral and may result in the disruption of the collateral's ongoing activities. The Company's involvement in the foreclosure process may also expose the Company and/or its affiliates to negative publicity, adverse public sentiment, regulatory scrutiny or legal disputes, which may adversely impact the Company and its anticipated assets. In some situations, the Company may be unable or unwilling to foreclose because of holdings of other PIMCO accounts or other conflicts, which could disadvantage the Company.

Also, a number of mortgage loan originators have previously experienced serious financial difficulties or bankruptcy. The foregoing, pullbacks by banks in trading and other refinancing difficulties, has resulted in reduced demand for mortgage loans and mortgage-related securities and increased investor yield requirements and has caused limited liquidity in the secondary market for mortgage-related securities, both of which can adversely affect the market value of mortgage-related securities. As a result, the performance of the Company's mortgage loans and other assets backed by mortgage loans could be correspondingly adversely affected.

A number of local governments have in the past and may in the future consider using eminent domain to seize loans and forgive principal on the loans. Such seizures, if they are successful, could result in losses and write-downs relating to the Company's loans and other assets backed by mortgage loans, such as MBSs, and could increase the Company's credit losses. These actions and others that state and local governments may pursue in the future could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

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***The servicers who service loans that the Company has acquired or is exposed to may experience financial difficulty or bankruptcy, negatively affecting the Company's positions.***

In addition to risks associated with attempting to predict default and recovery rates on loans that the Company or its affiliates are expected to acquire or to which it otherwise has exposure, the creditworthiness, servicing practices and viability of the servicers of such loans are also significant risks. For example, CDOs and RMBSs may provide that the servicer is required to make advances in respect of delinquent loans. However, servicers experiencing financial difficulties may not be able to perform these or their other obligations. Servicers who have sought bankruptcy protection may, due to application of the provisions of bankruptcy law, not be required to advance such amounts. Even if a servicer were able to advance amounts in respect of delinquent loans, its obligation to make such advances may be limited to the extent that it does not expect to recover such advances due to the deteriorating credit of the delinquent loans. In addition, a servicer's obligation to make such advances may be limited to the amount of its servicing fee.

Illiquidity and unpredictability in these markets make it difficult to determine whether such servicers have sufficient capital and adequate staffing levels to fulfill their servicing obligations and the extent to which such servicers are subject to regulatory risks and risk of error. Recently, a number of originators and servicers of loans have experienced serious financial difficulties and, in some cases, have entered bankruptcy proceedings. Such financial difficulties may have a negative effect on the ability of servicers to pursue collection on loans that are experiencing increased delinquencies and defaults and to maximize recoveries on sale of underlying collateral.

The Company will also be exposed to these and other risks to the extent it has a financial interest in a servicer or otherwise engages in servicing activities. While the Company may utilize, or replace existing servicers with, affiliated servicers, there can be no assurance that any such affiliated servicer will be successful or will have a positive impact on the Company's performance.

#### The Company faces higher risk of loss on loans secured by non-owner occupied properties.
Certain mortgage loans may be secured by residential properties where the occupant is not the owner. These mortgage loans may present a greater risk of loss because these borrowers may be more likely to default on a mortgage loan secured by non-owner-occupied property than a mortgage loan secured by a primary residence of a borrower.

#### The Company faces litigation and related risks associated with loan origination and servicing.
Loan origination and servicing companies are routinely involved in legal proceedings concerning matters that arise in the ordinary course of their business. These legal proceedings range from actions involving a single plaintiff to class action lawsuits with potentially tens of thousands of class members or more. In addition, a number of participants in the loan origination and servicing industry, including control persons of industry participants, have been the subject of regulatory actions by state regulators, including state Attorneys General, and by the federal government. Governmental investigations, examinations or regulatory actions or private lawsuits, including purported class action lawsuits, may materially and adversely affect such companies' financial results. To the extent the Company seeks to engage in origination and/or servicing directly, or has a financial interest in, or is otherwise affiliated with, an origination or servicing company, the Company will be subject to enhanced risks of litigation, regulatory actions and other proceedings. As a result, the Company may be required to pay legal fees, settlement costs, damages, penalties or other charges, any or all of which could materially and adversely affect the Company and its assets.

A number of regulatory authorities have taken action against certain loan originators and servicers for alleged violations of laws. Certain of those actions prohibit those servicers from pursuing foreclosure actions. In the future, additional jurisdictions could seek similar limitations on the ability of loan servicers to take actions, such as pursuing foreclosures, that may be essential to service and preserve the value of the loans on behalf of their holders. Any such limitations that applied to a servicer of the loans could adversely affect the holder's ability to realize proceeds on such loans.

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#### The Company is subject to the risk that violations of various federal, state and local laws may result in losses on mortgage loans.
Violations of certain federal, state or local laws and regulations relating to the protection of consumers, unfair and deceptive practices and debt collection practices may limit the ability of the Company, servicers and/or their affiliates to collect all or part of the principal of or interest on the residential mortgage loans and, in addition, could subject the Company, servicers and/or their affiliates to damages and administrative enforcement.

#### The Company is subject to risks associated with purchasing pools of loans.
In connection with the acquisition of whole or other loans, the Company may be required to purchase other types of assets as part of an available pool of assets in order to acquire the desired loans. These other assets may include assets that subject the Company to additional risks. Acquisition of less desirable assets may impair the performance of the Company and reduce returns, if any, to investors.

***The Company faces risks associated with assignments and participations in loans, including assumption of credit risk and exit restrictions. In addition, in purchasing a participation, the Company may not have the right to enforce compliance by the obligor and may not directly benefit from the collateral supporting the loan obligation.***

The Company is expected to acquire positions by way of assignment or by way of participation. Holders of indirect participation interests are subject to additional risks not applicable to a holder of a direct assignment interest in a loan. In purchasing an assignment of a loan obligation, the Company would typically succeed to all the rights and obligations of the selling institution and become a lender under the loan or credit agreement with respect to the loan obligation. In contrast, participations acquired by the Company in a portion of a loan obligation held by a selling institution would typically result in a contractual relationship only with such selling institution, not with the obligor. The Company would have the right to receive payments of principal, interest and any fees to which they are entitled under the participation only from the selling institution and only upon receipt by the selling institution of such payments from the obligor. In purchasing a participation, the Company generally will have no right to enforce compliance by the obligor with the terms of the loan or credit agreement or other instrument evidencing such loan obligation, nor any rights of set-off against the obligor, and the Company may not directly benefit from the collateral supporting the loan obligation in which they have purchased the participation. As a result, the Company will assume the credit risk of both the obligor and the selling institution, which will remain the legal owner of record of the applicable loan. In the event of the insolvency of the selling institution, the Company may be treated as a general creditor of the selling institution in respect of the participation, may not benefit from any set-off exercised by the selling institution against the obligor and may be subject to any set-off exercised by the obligor against the selling institution. If the Company purchases a participation from a selling institution that does not itself retain any portion of the applicable loan, the Company may have limited ability to monitor the terms of the loan agreement and the continuing creditworthiness of the borrower. In addition, when the Company holds a participation in a loan obligation, the Company may not have the right to vote to waive enforcement of any default by an obligor. A selling institution may have interests different from those of the Company, and the selling institution might not consider the interests of the Company when taking actions with respect to the loan underlying the participation. Selling institutions typically reserve the right to administer the debt obligations sold by them as they see fit and to amend the documentation evidencing such debt obligations in all respects. In addition, some participation agreements that provide voting rights to the participant further provide that if the participant does not vote in favor of amendments, modifications or waivers, the selling institution may repurchase such participation at par. The Company is expected to enter into a participation arrangement with the intent of ultimately acquiring the underlying instrument by way of assignment, but such transaction may take longer than the Company originally anticipated or may never occur. Assignments and participations are typically sold strictly without recourse to the selling institution thereof, and the selling institution will generally make no representations or warranties about the underlying loan, the borrowers, the documentation of the loans or any collateral securing the loans. Certain loans have restrictions on assignments and participations that may negatively impact the Company's ability to exit from all or part of a loan.

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***The Company faces risks associated with acquisitions of structured instruments, including prepayment risk, market and regulatory uncertainty, extension risk, interest rate risk, subordination risk, default-related risks and the possibility of material misrepresentation or omission from issuers or guarantors.***

The Company is expected to acquire interests in various tranches of structured products, securitizations and other ABSs backed by assets of any type, including non-agency RMBSs and ABSs, CDOs, CMOs, including interest-only and principal-only classes and repackaged securities (collectively, "Structured Instruments"). Structured Instruments are highly complex instruments that are subject to a number of risks. These risks include prepayment risk, market and regulatory uncertainty, extension risk, interest rate risk, subordination risk, default-related risks, as well as the possibility of material misrepresentation or omission from issuers/guarantors. In addition, Structured Instruments are often leveraged, thereby increasing their risk, and due to their complex structure, they may be difficult to value and may have reduced liquidity. Structured Instruments are also subject to the risks associated with the underlying issuers and underlying assets, such as mortgage loans and real estate assets, such as default or bankruptcy at the underlying asset level and claims of fraudulent conveyance, and because the Company will not own such assets directly, it will not benefit from general rights applicable to the holders of such assets, such as the right to indemnity and the rights of setoff, or have voting rights with respect to such assets. In addition, the Company is expected to securitize certain Portfolio Assets, including through repackaged securities, as well as the creation of securitized vehicles to which the Company contributes a pool of assets and sells debt interests in such securitized vehicle to purchasers, including other PIMCO Clients. In some cases, short-term credit facilities, including facilities that are recourse to the Company, may be used to finance the acquisition by securitized vehicles of assets until a sufficient quantity of assets is accumulated, at which time the credit facility is refinanced. As a result, the Company is subject to the risk that it will not be able to obtain, or renew or extend, such short-term facilities or that it will not be able to acquire, during the period that any such short-term facilities are available, a sufficient amount of eligible assets for the purposes of a securitization. In addition, the Company is expected to hold equity interests in securitized vehicles that are not secured by the assets of the securitized vehicles, and the Company may rank behind all creditors of the securitized vehicles. To the extent that any losses are incurred by the securitized vehicle in respect of any collateral, such losses will be borne first by the Company as a holder of common or preferred shares or other junior interests. In addition, conflicts of interest will arise if the Company participates as a sponsor or purchaser of interests of a securitized vehicle in which other PIMCO Clients or affiliates also participate. These conflicts may not be resolved in a way that is beneficial to the Company. The Company may also bear certain additional fees and expenses with respect to any Structured Instruments and such fees and expenses may not be offset against the Management Fee.

#### The Company faces risks associated with acquiring mortgage-backed securities, including prepayment risk, interest rate risk, risk of default and substantially reduced liquidity.
MBSs are securitized debt obligations, typically issued in senior and subordinated classes and structured with various forms of credit enhancements. The Company is expected to acquire RMBSs. The yield and payment characteristics of MBSs differ from traditional debt securities. Interest and principal prepayments are made more frequently, usually monthly, over the life of the mortgage loans, and principal generally may be prepaid at any time because the underlying mortgage loans generally may be prepaid at any time. MBSs are therefore subject to prepayment risk. In particular, faster or slower prepayments than expected on underlying mortgage loans can increase volatility and dramatically alter the yield to maturity of an MBS, and early repayment of principal on some MBSs may expose the Company to a lower rate of return upon re-deployment of principal.

The value of most MBSs, like traditional debt securities, tends to vary inversely with changes in interest rates. When interest rates rise, the value of MBSs generally will decline; however, when interest rates decline, the value of MBSs with prepayment features may not increase as much as other fixed income securities because prepayment of mortgage loans tends to accelerate during periods of declining interest rates. Alternatively, during periods of rising interest rates, the average life of certain types of MBSs may be extended because of slower than expected principal payments. This could in effect result in locking in a below-market interest rate, increasing the security's duration and reducing the value of the security. Extension risk may be heightened during periods of adverse economic conditions generally, as payment rates decline due to higher unemployment levels and other factors.

The Company is expected to acquire MBSs that are subordinate in right of payment and rank junior to other securities. Subordinated MBSs involve greater credit risk of default than is applicable to the senior classes. Many of the default-related risks of mortgages will be magnified in subordinated securities. Default risks may be further pronounced in the case of MBSs secured by, or evidencing an interest in, a relatively small or less diverse pool of underlying loans.

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Developments in the market for many types of mortgage products, including MBSs, have resulted in substantially reduced liquidity for these assets. Although this reduction in liquidity has been most acute with regard to sub-prime assets, there has been an overall reduction in liquidity across the credit spectrum of mortgage products, which could have an adverse impact on the Company's MBS assets.

In addition, MBSs are subject to risks relating to mortgage loans and real estate assets, which are described elsewhere in this Annual Report. In particular, the value of MBSs may be substantially dependent on the servicing of the underlying asset pools and are therefore subject to risks associated with the fraud or negligence by, or defalcation of, their servicers. In certain circumstances, the mishandling of related documentation may also affect the rights of securityholders in and to the underlying collateral.

***In addition to the typical risks associated with fixed income securities, the Company faces risks specifically associated with taking positions in CDOs, including, but not limited to, the speculative nature of such acquisitions.***

The risks of a CDO depend largely on the type of the collateral securities and the class of the CDO which the Company acquires. Normally, collateralized bond obligations ("CBOs") and other CDOs are privately offered and sold, and thus, are not registered under the securities laws. CDOs are subject to the typical risks associated with fixed income securities. In addition to the other risks associated with fixed income securities, CDOs may entail a variety of unique risks. Among other risks, CDOs may be subject to prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest rate risk, which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in interest rates or inversely to changes in interest rates. Additional risks include, without limitation, (i) the possibility that distributions from collateral securities will be insufficient to make interest or other payments, (ii) the possibility that the quality of the collateral may decline in value or default, (iii) the performance of a structure of the issuer thereof, the availability of any credit enhancement, the level and timing of payments and recoveries on and the characteristics of the underlying receivables, loans or other assets that are being securitized, remoteness of those assets from the originator or transferor, the adequacy of and ability to realize upon any related collateral and the capability of the servicer of the securitized assets, (iv) the price of a structured finance instrument, if required to be sold, may also be subject to certain market and liquidity risks for securities of its type at the time of sale, (v) if the particular structured product is a security in which the Company is also interested, this would tend to increase the Company's overall exposure to the credit of the issuer of such securities, at least on an absolute, if not on a relative basis, (vi) the assets collateralizing any CDO may have more correlated performance than expected at the time of structuring such CDO and therefore may perform worse than projected in a default scenario and (vii) the issuer and the holders may interpret the terms of the instrument differently, giving rise to disputes. A CDO also is subject to the risk that the issuer and the holders may interpret the terms of the instrument differently, giving rise to disputes.

For CBOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the residual or "equity" tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Because they may be partially protected from defaults, senior tranches of a CBO trust typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the potential protection from the equity tranche, senior CBO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, fraud by the trust and the illiquidity of CBO securities. The Company may acquire any tranche of a CBO.

Some structured financing may have prepayment provisions or which are prepaid because underlying loans are prepaid earlier than expected or capital may otherwise be repaid earlier than expected. If the Operating Manager is unable to identify new accretive income producing assets that meet the Company's objectives and policy, or are unable to do so in a timely manner, this could materially and adversely affect the Company's objectives and policy.

In many securitizations, such as CDO transactions, there are asset and counterparty performance requirements that must be met to ensure income is paid to all holders, rather than being retained in a lock-up or cash reserve as additional credit or liquidity support for senior holders. If the Company takes subordinated positions in such transactions, it could result in an elimination, deferral or reduction of the income received by the Company.

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The underlying collateral in a loan portfolio or securitization is not necessarily individually assessed prior to purchase. The manager of the loan portfolio is responsible for managing the collateral, but may not be able to prevent losses. Losses may occur not only because of default, but an adverse change in interest rates, poor servicing by a portfolio manager, prepayment occurring outside historical averages, adverse credit spread moves, basis risk movements and lower than assumed collateral recover rates, amongst others. Such losses within the collateral may adversely impact the loan portfolio or securitization assets which the Company may hold.

The Company may hold a minority position in structured finance transactions and have little or no capacity to influence the transaction and may result in the Operating Manager being forced to take an action which it believes is not in the best interest of the Company.

Each loan portfolio is administered by a servicer whose role may include underwriting the loan portfolio, arranging its securitization, administering cash flows and arrears, overseeing the realization of security where a loan has gone into default. The Company's assets and the return to the Company may be materially and adversely impacted where, among other things, the servicer (i) fails to follow best practices in realizing any security values or (ii) fails to adequately administer the loans that fall into arrears or default. In the event that the servicer is unable to meet its administrative obligations, a substitute servicer will need to be appointed. There is a risk that a substitute servicer will not be available when required, that the substitute servicers will not be able to perform its duties with the requisite level of skill and competence or that it will require extra time to assume responsibility for the portfolio.

#### The Company faces market, prepayment and extension risks associated with taking positions in CMOs.
CMOs are debt obligations collateralized by whole mortgage loans or mortgage pass-through securities. CMOs are subject to market risk, prepayment risk and extension risk similar to MBSs, and certain classes or series may have more or less volatility depending upon the cash flow predictability for such class or series. In particular, for certain CMOs (known as "sequential pay" CMOs), payments of principal received from the pool of underlying mortgages, including pre-payments, are applied to the classes of CMOs in the order of their respective final distribution dates. Thus, no payment of principal will be made to any class of sequential pay CMOs until all other classes having an earlier final distribution date have been paid in full.

In addition, certain classes of CMOs (such as Interest Only ("IO") and Principal Only ("PO") classes) are structured in a manner that makes them more sensitive to changes in prepayment rates. IOs are entitled to receive all or a portion of the interest, but none (or only a nominal amount) of the principal payments, from the underlying mortgage assets. If the mortgage assets underlying an IO experience greater than anticipated principal prepayments, then the total amount of interest payments allocable to the IO class, and therefore the total return to investors, generally will be reduced. Conversely, PO classes are entitled to receive all or a portion of the principal payments, but none of the interest, from the underlying mortgage assets. PO classes are purchased at substantial discounts from par, and the total return to investors will be reduced if principal prepayments are slower than expected. Some IOs and POs, as well as other CMO classes, are structured to have special protections against the effect of prepayments. These structural protections, however, normally are effective only within certain ranges of prepayment rates and thus do not protect holders in all circumstances.

Inverse floating rate CMO classes also may be volatile. These classes pay interest at a rate that decreases (increases) when a specified index of rates increases (decreases).

As CMOs have evolved, some classes of CMO bonds have become more common. For example, the Company may acquire parallel-pay and planned amortization class ("PAC") CMOs and multi-class, pass-through certificates. Parallel-pay CMOs and multi-class, pass-through certificates are structured to provide payments of principal on each payment date to more than one class. These simultaneous payments are taken into account in calculating the stated maturity date or final distribution date of each class, which, as with other CMO and multi-class pass-through structures, must be retired by its stated maturity date or final distribution date but may be retired earlier. PACs generally require payments of a specified amount of principal on each payment date. PACs are parallel-pay CMOs with the required principal amount on such securities having the highest priority after interest has been paid to

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all classes. Any CMO or multi-class pass through structure that includes PAC securities must also have support tranches—known as support bonds, companion bonds or non-PAC bonds—which lend or absorb principal cash flows to allow the PAC securities to maintain their stated maturities and final distribution dates within a range of actual prepayment experience. These support tranches are subject to a higher level of maturity risk compared to other mortgage-related securities, and usually provide a higher yield to compensate holders. If principal cash flows are received in amounts outside a pre-determined range such that the support bonds cannot lend or absorb sufficient cash flows to the PAC securities as intended, the PAC securities are subject to heightened maturity risk. Consistent with the Company's business objectives and policies, the Company may acquire various tranches of CMO bonds, including support bonds.

#### The Company faces market, prepayment and interest rate risks associated with taking positions in CMO residuals.
CMO residuals are mortgage securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or holders of, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment banks and special purpose entities of the foregoing.

The cash flow generated by the mortgage assets underlying a series of CMOs is applied first to make required payments of principal and interest on the CMOs and second to pay the related administrative expenses and any management fee of the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining after making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual represents income and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on, among other things, the characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates, the amount of administrative expenses and the pre-payment experience on the mortgage assets. In particular, the yield to maturity on CMO residuals is extremely sensitive to pre-payments on the related underlying mortgage assets, in the same manner as an IO class of stripped mortgage-backed securities. In addition, if a series of a CMO includes a class that bears interest at an adjustable rate, the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which interest rate adjustments are based. As described below with respect to stripped mortgage-backed securities, in certain circumstances the Company may fail to recoup fully, or at all, its initial investment in a CMO residual.

CMO residuals are generally purchased and sold by institutional investors through several investment banking firms acting as brokers or dealers. Transactions in CMO residuals are generally completed only after careful review of the characteristics of the securities in question. However, such transactions inherently involve significant risks up to and including a total loss of the initial purchase amounts. In addition, CMO residuals may, or pursuant to an exemption therefrom, may not have been registered under the Securities Act. CMO residuals, whether or not registered under the Securities Act, may be subject to certain restrictions on transferability.

#### The Company faces risks associated with taking positions in real estate mortgage conduits.
Real Estate Mortgage Conduits ("REMCs") are private entities formed for the purpose of holding a fixed pool of mortgages secured by an interest in real property. The general characteristics and risks of REMCs are similar to those of CMOs described above.

#### The Company faces prepayment, extension, default and subordination risks associated with acquiring repackaged securities.
Repackaged securities are typically structured using a trust that acquires securities of one or more issuers (the "underlying securities") through the secondary market and/or in private transactions and then sells trust certificates representing interests in the underlying securities. Repackaged securities are subject to many of the same risks applicable to Structured Instruments generally as described herein, including prepayment, extension, default and subordination risks, as well as risks associated with the underlying issuers and their underlying securities.

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***The Company faces increased risks due to the complex, leveraged and speculative nature of structured instruments, which could lead to reduced returns or a partial or complete loss of the Company's principal interest in a structured instrument.***

Structured Instruments are often leveraged, thereby increasing their risk. Utilization of leverage is a speculative technique and will generally magnify the opportunities for gain and risk of loss borne by a holder in the equity or subordinated debt securities issued by a Structured Instrument. Many Structured Instruments contain covenants designed to protect the providers of debt financing to such Structured Instruments. A failure to satisfy those covenants could result in the untimely liquidation of the Structured Instrument and a complete loss of the Company's interest therein. In addition, if the particular Structured Instrument is invested in a security in which the Company is also interested, this would tend to increase the Company's overall exposure to the credit of the issuer of such securities.

Structured Instruments are highly complex instruments. Their complexity gives rise to the risk that investors, parties involved in their creation and issuance, and other parties with an interest in them may not have the same understanding of how these instruments behave, or the rights that the various interested parties have with respect to them. Furthermore, the documents governing these instruments may contain some ambiguities that are subject to differing interpretations. Even in the absence of such ambiguities, if a dispute were to arise concerning these instruments, there is a risk that a court or other tribunal might not fully understand or properly interpret all aspects of these instruments and might rule in a manner contrary to both the terms and the intent of the documents. Therefore, the Company cannot be fully assured that it will be able to enjoy all of the rights that it expects to have when it acquires Structured Instruments. In addition, due to their complex structure, Structured Instruments may be difficult to value and may have reduced liquidity. Structured Instruments are also a relatively recent development in the financial markets. Consequently, there are certain tax and market uncertainties that present risks relating to acquiring Structured Instruments.

As noted above, Structured Instruments are subject to the risks of the underlying assets. These risks include, among other things, the possibility of a default by, or bankruptcy of, the issuers of such assets or a claim that the pledging of collateral to secure any such asset constituted a fraudulent conveyance or preferential transfer that can be subordinated to the rights of other creditors of the issuer of such asset or nullified under applicable law. The Company will not own such assets directly and will therefore not benefit from general rights applicable to the holders of assets, such as the right to indemnity and the rights of setoff, or have voting rights with respect to such assets.

Structured Instruments are also subject to risks relating to the quality of the control and other systems and procedures used by the parties originating and servicing the underlying assets. Deficiencies in these systems may result in higher-than-expected borrower delinquencies or other factors affecting the value of the underlying assets, such as the inability to effectively pursue remedies against borrowers due to defective documentation. The Company may rely upon representations of the securitization vehicles in respect of control and other systems and the securitized assets and conduct little or no diligence in respect of them. Accordingly, there can be no assurance that such systems and underlying assets will not be defective in a manner that could adversely affect the Company.

A number of high-profile cases have alleged that originators and other Structured Instrument parties made misrepresentations with respect to loans or other underlying assets. While such misrepresentations often expose such parties to "putback" liability, there are several potential obstacles to any such action. In particular, transaction documents often provide that only a specified percentage of Structured Instrument securityholders can direct the trustee to take actions, such as obtaining loan files and/or commencing litigation, and only upon the provision of a reasonable indemnity in favor of the trustee. There can be no guarantee that the Company will be able to meet such percentage threshold or successfully negotiate with the trustee, which may not be sufficiently compensated or incentivized to take such actions. To the extent the Company is required or elects to partner with other securityholders, there may be disputes within the group relating to the proper course of action. Documents relating to the underlying assets may be missing or incomplete, and the transaction documents themselves often contain provisions that are complex, ambiguous and/or potentially inconsistent. Any such action may also generate significant publicity and the involvement of governmental, regulatory or other bodies, which introduces an additional element of uncertainty. Similarly, it is often extremely difficult to replace the servicer or manager of a Structured Instrument even when it would be in the securityholders' best interests to do so. For these and other reasons, any such actions are likely to be complex, lengthy and expensive and may not be ultimately resolved in the Company's favor. Neither the Company nor Operating Manager on behalf of the Company will be required to threaten or commence any such actions even if it may be beneficial to do so.

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Conversely, to the extent the Company sponsors or is otherwise involved in the creation of a Structured Instrument, it will be subject to similar claims from investors therein, any of which could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

#### The Company faces certain risks related to fund-sponsored structured instruments.
In connection with the acquisition, financing or disposition of certain Portfolio Assets, the Company is expected to securitize certain Portfolio Assets, including through repackaged securities, while sometimes retaining the exposure to the performance of these instruments. This would sometimes involve creating a special purpose vehicle, contributing a pool of Company assets to it or a related entity (each, a "Securitized Vehicle") and selling debt interests in such Securitized Vehicle to purchasers (which may include other clients of PIMCO; see "*—Potential Conflicts of Interest; Other Activities of the Operating Manager*" below). The Company is expected to retain equity of the Securitized Vehicle, together possibly with other tranches as well. In addition, the Company may seek to acquire a Securitized Vehicle rather than creating it.

*Accumulation of Assets for Securitized Vehicles; Access to Short-Term Financing; Company Guarantees*. In some cases, relatively short-term credit facilities may be used to finance the acquisition by Securitized Vehicles of loans and other assets until a sufficient quantity of assets is accumulated, at which time the credit facility is refinanced through a portfolio level financing, such as a securitization. As a result, the Company is subject to the risk that it will not be able to acquire, during the period that the short-term facilities are available, a sufficient amount of eligible assets for the purposes of a securitization. The Company also bears the risk that it will not be able to obtain such short-term credit facilities or may not be able to renew any short-term credit facilities after they expire should it find it necessary to obtain extensions for such short-term credit facilities to allow more time to obtain a long-term financing or to seek and acquire the necessary eligible instruments for a long-term financing. Inability to renew or extend these short-term credit facilities may require the Company to seek more costly financing for these assets or to lose the ability to utilize them in connection with a securitization. These facilities may be recourse to the Company, and even if they are otherwise "non-recourse", the Company may bear the "first loss" associated with any decreases in value of the assets. The Company expects to provide guarantees in support of credit facilities used to acquire assets, and there can be no assurance that such guarantees will not have adverse consequences for the Company.

*Loss on Non-Conforming Assets*. If any of the loans or securities that the Company or its affiliates acquires and subsequently sells or finances do not comply with representations and warranties about certain characteristics of the loans or securities, the underlying borrowers or issuers and the underlying assets, the Company may be required to repurchase such loans or securities or replace them with substitute loans or securities. In addition, in the case of loans or securities that the Company has transferred to a Securitized Vehicle and that the Securitized Vehicle has sold instead of retained, the Securitized Vehicle may be required to indemnify purchasers for losses or expenses incurred as a result of a breach of a representation or warranty. Any significant repurchases or indemnification payments could materially and adversely affect the liquidity, financial condition and operating results of the Securitized Vehicle and/or the Company.

*Structural Subordination of Equity or Other Junior Interests*. The Company is expected to hold equity interests in Securitized Vehicles that are not secured by the assets of the Securitized Vehicles, and the Company may rank behind all known or unknown creditors, whether secured or unsecured, of the Securitized Vehicles. No person or entity other than the Securitized Vehicle is typically required to make any distributions on the equity interests. Payments from a Securitized Vehicle on its common or preferred shares or other equity interests are subordinate to payments on its debt. To the extent that any losses are incurred by the Securitized Vehicle in respect of any collateral, such losses will be borne first by the Company as a holder of common or preferred shares or other junior interests.

*Conflicts of Interest*. Conflicts of interest will arise if the Company participates as a sponsor or purchaser of interests of a Securitized Vehicle in which other PIMCO Clients or affiliates also participate. These conflicts may not be resolved in a way that is beneficial to the Company. See "*—Potential Conflicts of Interest; Other Activities of the Operating Manager*" below.

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***By using warehouse facilities, the Company faces the risk that it will not be able to acquire a sufficient amount of eligible assets within the necessary time period.***

The Company is expected to acquire interests in credit facilities secured by Portfolio Assets. Typically, these warehouse facilities will be used to finance the acquisition of loans and other assets until a sufficient quantity of assets is accumulated, at which time the credit facility is refinanced through a securitization. As a result, the Company is subject to the risk that such warehouse vehicle will not be able to acquire, during the period that the short-term facilities are available, a sufficient amount of eligible assets for the purposes of subsequent securitizations. These facilities may be recourse to the Company, and even if they are otherwise "non-recourse", the Company may bear the "first loss" associated with any decreases in value of the assets. Except in certain distress scenarios, the ability of the Company to exercise control over these assets may be limited. The Company may provide guarantees in support of credit facilities used to acquire assets, and there can be no assurance that such guarantees will not have material and adverse consequences for the Company. There is no guarantee that the securitization will close or that the securitization market in general would allow a takeout of any warehouse facility and therefore these would constitute credit risks for the Company.

#### The Company faces risks related to acquisitions of Platform Companies.
The Company has made, and will continue to make, acquisitions indirectly through SPV(s) in the equity interests, and potentially controlling equity interests, in Platform Companies that originate, underwrite and/or service the asset types that fall into the Company's areas of strategy focus (such acquisitions, "Platform Acquisitions"). Without limitation, the Company may acquire Platform Companies that provide services to, originate and sell assets to or are used for activities by the Company, the Operating Manager, the Operating Manager's clients and their respective affiliates. The Company, the Operating Manager or its affiliates may form a new Platform Company and recruit an existing or newly formed management team to build a Platform Company through acquisitions and organic growth. As an operating company, each Platform Company bears ordinary operating expenses, which include all normal administrative and operating business expenses, such as salary, rent, the cost of borrowed funds, consultants and advisors, among others, and including expenses relating to its activities. The income, servicing fees and other revenue earned by a Platform Company from its customers are used to pay these expenses. The Company may realize an equity interest in a Platform Company, in whole or in part, through sale of the Platform Company or a disposition of assets held by the Platform Company. The Company may also obtain primary or secondary positions in or otherwise gain exposure to the Platform Acquisitions originated and serviced by Platform Companies.

The structure of each Platform Company will vary, including in respect of whether a management team's services are exclusive to the Platform Company and whether members of the management team are employed directly by such Platform Company or indirectly through a separate manager to such Platform Company and such structures are subject to change throughout a Platform Acquisition's hold period, for example, in connection with potential restructurings, refinancings and/or dispositions. Members of the management team for a Platform Acquisition may include current and former PIMCO personnel, advisors, senior advisors, consultants or operating executives.

Platform Companies may provide products and services for fees to the Company, the Operating Manager or its affiliates, including any Service Providers, other PIMCO-managed funds, vehicles or accounts and their portfolio entities, personnel and related parties, as applicable, as well as third parties. Platform Companies could provide products and services for fees to such parties in circumstances where third-party Service Providers are concurrently providing similar services to such parties. Contracting for a product or service from a Platform Company would provide not only current income to the Platform Company and its stakeholders, but could also create significant enterprise value, which could benefit the Operating Manager or its affiliates directly and indirectly. The services provided by the Platform Company's management team may be similar to, and overlap with, services provided by the Company, the Operating Manager or its affiliates, including any Service Providers, to the Company or to other PIMCO-managed funds, vehicles or accounts. As with the Company's other Platform Acquisitions, in respect of all Platform Company arrangements, the Company will bear expenses of the management team and/or portfolio company, as the case may be, including, for example, any overhead expenses, management fees or other fees, employee compensation, diligence expenses or other expenses in connection with backing the management team and/or the build out of the Platform Company. Such expenses may be borne directly by the Company as Company expenses, or broken deal expenses, if applicable, or indirectly as the Company bears the start-up and ongoing expenses of the newly formed Platform Company. The compensation of management of a Platform Company may include management fees, or

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other fees, including, for example, origination fees regardless of whether the transactions are consummated, interests in the profits of a portfolio company, including profits realized in connection with the disposition of an asset and other performance-based compensation. Although a Platform Company may be controlled by the Company, members of a management team will not be treated as affiliates of the Company, the Operating Manager or their affiliates. Accordingly, none of the expenses described above will be offset against any of the Company's Management Fees payable to, and Performance Fee distributable to, the Operating Manager. In addition, the Operating Manager is expected to receive fees associated with capital provided by co-investors relating to Platform Acquisitions in which the Company participates.

The Company may realize a Platform Acquisition, in whole or in part, by causing a Platform Acquisition to be realized, or partially realized, in any number of ways, including, without limitation, by: (1) sale, partial sale or other disposition of the Platform Acquisition to a third party, including through the direct or indirect sale of interest in the Platform Acquisition to co-investors or through an initial public offering; (2) distributing any dividends or other current income received by the Platform Acquisition; (3) causing the Company or an affiliate of the Operating Manager or the Company to exchange for cash or cash equivalents, all, certain, or a portion of a Platform Acquisition at the fair market value thereof determined in accordance with the valuation procedures set forth in the Company's valuation policy (which may include the use of third-party valuation Service Providers); and/or (4) permanently writing down or writing off a Platform Acquisition.

***The Company may engage in a variety of over-the-counter and other derivative transactions as part of their hedging or other strategies, which may subject the Company to increased risk or adversely affect the Company's business. The Company could buy or sell options which involves the risk of losing the value of or incurring liability relating to those options.***

The Company is expected to engage in a variety of derivatives transactions. A derivative is a financial contract the value of which depends upon, or is derived from, the value of underlying assets, reference rates or indices. Derivatives may relate to securities, interest rates, currencies or currency exchange rates, inflation rates, commodities and related indices, and include foreign currency contracts, swap contracts, options, forward and futures contracts (including options thereon), repurchase or reverse repurchase agreements or other OTC contracts. The Company is expected to use derivatives for many purposes, including as a substitute for direct exposure, as a way to adjust its exposure to various securities, markets and currencies without actually having to sell existing positions and/or make new acquisitions, and as a means to hedge other positions and to manage liquidity and excess cash. The Company's use of derivatives may result in losses, reduce the Company's return and/or increase the volatility of the Company, particularly since many derivatives are inherently leveraged, especially in unusual or extreme market conditions.

All derivatives transactions involve risks different from, and potentially greater than, the risks associated with directly acquiring securities and other more traditional assets, including:

*Market Risk*. This is the general risk that the value of a particular asset or transaction, including derivatives, will change in a way detrimental to the Company's interests. General economic and capital and credit market conditions may have a significant impact on the business and assets of the Company. Interest rates, fluctuations in the price of assets and increased competition may adversely and materially affect the value of assets held by the Company and the ability of the Company to make or dispose of assets at attractive prices.

*Management Risk*. Derivatives contracts are specialized contracts that require techniques and risk analyses with additional levels of complexity associated with the underlying assets. The use of a derivative requires an understanding not only of the underlying instrument, but also of the derivative itself. In particular, the use and complexity of derivatives require the maintenance of adequate controls to monitor the transactions entered into and the ability to assess the risk that a derivative adds to the Company's portfolio. The Company's use of derivatives may not be effective or have the desired result, which could negatively impact the Company's performance. Also, suitable derivatives may not be available in all circumstances and there can be no assurance that the Company will be able to identify or employ a desirable derivatives transaction at any time or from time or time, or that any such transactions will be successful or have the intended result. In addition, the Company may decide not to use derivatives to hedge or otherwise reduce the Company's risk exposures, potentially resulting in losses for the Company. See "*—The Company may engage in a variety of over-the-counter and other derivative transactions as part of their hedging or other strategies, which may subject the Company to increased risk or adversely affect the Company's business. The Company could buy or sell options which involves the risk of losing the value of or incurring liability relating to those options*."

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*Counterparty Risk*. With respect to derivatives transactions, estimating counterparty risk exposure entails, among other things, reviewing the current market value of open positions, collateral posted in or out against positions, unsettled or failing movements of any cash payments or collateral obligations due from the counterparty and potential replacement cost of positions. When entering into OTC derivatives, there is risk that a loss may be sustained by the Company as a result of the insolvency of the counterparty or its affiliates, or the failure of the counterparty to comply with the terms of the derivative contract. In the event of default by a counterparty, the Company may have contractual remedies pursuant to the agreements related to the transaction, but there is no assurance that the Company will succeed in enforcing contractual remedies. The Company may be delayed in and/or not be able to recover amounts owed to it by an insolvent counterparty. Some derivative transactions, including futures contracts and certain interest rate and index credit default swaps, are required to be or are capable of being centrally cleared. When the Company enters into such derivative transactions, it is subject to the credit risk of the clearing house and the clearing member through which it holds such positions. In general, cleared derivatives transactions can have a lower level of counterparty risk, while OTC derivatives and other uncleared transactions can have a more significant level of counterparty risk. Counterparty credit risk still exists even if a counterparty's obligations are secured by collateral because the Company's interest in collateral may not be perfected or additional collateral may not be promptly posted as required. Counterparty credit risk also may be more pronounced if a counterparty's obligations exceed the amount of collateral held by the Company, if any, the Company is unable to exercise or is delayed in exercising its interest in collateral upon default by the counterparty or its affiliates, or the termination value of the instrument varies significantly from the marked-to-market value of the instrument.

*Documentation Risk*. Many derivatives transactions also have documentation risk, which is the risk that ambiguities, inconsistencies or errors in the documentation relating to a derivative transaction may lead to a dispute with the counterparty or unintended results. Because the contract for each OTC derivative transaction is often individually negotiated, the counterparty may interpret contractual terms, such as the definition of default, differently than the Company. If that occurs, the cost and unpredictability of the legal proceedings required for the Company to enforce its contractual rights may lead the Company to decide not to pursue its claims against the counterparty. The Company, therefore, assumes the risk that it may be unable to obtain payments the Operating Manager believes are owed to it under derivatives transactions or those payments may be delayed or made only after the Company has incurred the costs of litigation. Also, payment amounts calculated in connection with standard industry conventions for resolving contractual issues, such as ISDA protocols and auction processes, may be different than would be realized if a counterparty were required to comply with the literal terms of the derivatives transactions, such as physical delivery. There is little case law interpreting the terms of most derivatives or characterizing their tax treatment.

*Liquidity Risk*. Liquidity risk exists when a particular instrument is difficult impractical or impossible to purchase or sell. If a derivative transaction is particularly large or if the relevant market is illiquid, as is the case with many OTC derivatives, it may not be possible to initiate a transaction or liquidate a position at an advantageous price, if at all. Less liquid derivatives may also fall more in price than other derivatives or related securities during market falls. During periods of market disruption, the Company may have a greater need for cash to provide collateral for large swings in the mark-to-market obligations arising under the derivative instruments used by the Company or to provide additional initial margin if required by a clearing house, clearing member or other counterparty and may be forced to sell assets to satisfy margin calls or post collateral to counterparties at times when the Company would otherwise prefer to hold such assets. These risks may be further exacerbated by requirements under rules issued pursuant to financial reform legislation.

*Leverage Risk*. Since many derivatives have a leverage component, such as a notional value in excess of the assets needed to establish and/or maintain the derivative position, adverse changes in the value or level of the underlying asset, rate or index can result in a loss substantially greater than the amount used to acquire the derivative itself. Certain derivatives have the potential to expose the Company to unlimited loss, regardless of the size of the initial position in the derivative.

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*Regulatory Risk*. The derivatives market is subject to various risks related to existing as well as new and evolving regulation both within and outside the United States. Additional regulation of the derivatives markets may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the value or performance of derivatives. Any such adverse future developments could impair the effectiveness of the Company's derivatives transactions and cause the Company to lose value. They may also render certain strategies in which the Company might otherwise engage impossible or so costly that they will no longer be economical to implement. See "—*Risks Related to Regulatory Matters*."

*Other Risks*. Other risks in using derivatives include the risk of mispricing or improper valuation of derivatives. Many derivatives, in particular OTC derivatives, are complex and their valuation often requires modeling and judgment, which increases the risk of mispricing or improper valuation, and there can be no assurance that the pricing models employed by the Company will produce valuations that are consistent with the values realized when OTC derivatives are actually closed out or sold. This valuation risk is more pronounced when the Company enters into OTC derivatives with specialized terms because the value of those derivatives in some cases is determined in part by reference to similar derivatives with more standardized terms. Improper valuations may result in increased cash payment requirements to counterparties, under collateralization and/or errors in calculation of the Company's NAV. Furthermore, derivatives also involve the risk that changes in their value may not correlate perfectly with their underlying assets, rates or indices. The risk may be more pronounced when outstanding notional amounts in the market exceed the amounts of the referenced assets. Derivatives are also subject to currency and other risks. Suitable derivatives are not available in all circumstances. For example, the economic costs of taking some derivatives positions may be prohibitive. Under the terms of certain contracts governing derivative transactions, the occurrence of certain events with respect to the Company, such as a decline in the Company's NAV, may cause the Company's derivatives transactions to be terminated early, including at an inopportune time or at an unfavorable price.

#### The Company may enter into swap contracts with unlimited notional amounts, which may expose the Company to unlimited risk of loss.
Swap contracts are two-party contracts entered into primarily by institutional holders for periods ranging from a few weeks to a number of years. Under a typical fixed income swap, one party may agree to pay a fixed or variable amount determined by reference to one or more specified instruments, rates or indices, multiplied in each case by a specified amount ("notional amount"), while the other party agrees to pay an amount equal to a different rate multiplied by the same notional amount. Other swaps may be used to provide or hedge exposure to other assets, such as stocks, bonds or currencies. The Company may enter into swaps for speculative or hedging purposes. Notional amounts of swap transactions are not subject to any limitations, and swap contracts may expose the Company to unlimited risk of loss. Swaps may be used as an alternative to futures contracts.

Under current U.S. law, "swaps" (as defined in Section 1a of the U.S. Commodity Exchange Act (the "<u>CEA</u>") and applicable regulations) are regulated by the CFTC, while "security-based swaps" (as defined in Section 1a of the CEA and applicable regulations) are regulated by the SEC and "mixed swaps" (as defined in Section 1a of the CEA and applicable regulations) are jointly regulated by the CFTC and SEC. "Swaps" include, but are not limited to, certain foreign exchange and currency swaps, forwards and options, interest rate swaps and options, commodity swaps and swaps referencing broad-based securities indices. "Security-based swaps" include, but are not limited to, swaps referencing single securities or narrow-based securities indices. "Mixed swaps" include total return swaps on a single security that also create foreign exchange exposure and basket swaps that include a narrow-based index of securities and an index or basket of commodities.

Swaps are either subject to a bilateral agreement with a counterparty or are cleared through a central clearing organization. Under certain rules and regulations, transactions in some types of swaps, including certain interest rate swaps and credit default swaps on North American and European indices, are required to be centrally cleared. To the extent the Company enters into swaps, forwards, options and other transactions that are not cleared by a central clearing organization, counterparty exposures can develop and the Company takes the risk of nonperformance by the other party on the contract. Swaps, futures, options and other instruments that are cleared by a central clearing organization, which generally are supported by guarantees of the clearing organization's members, daily marking-to-market and settlement and segregation and minimum capital requirements applicable to intermediaries, are subject to different risks, including the creditworthiness of the central clearing organization and its members.

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The U.S., the United Kingdom ("UK"), the European Union ("EU") and certain other jurisdictions have enacted legislation that provides for increased regulation of the derivatives market, which could restrict the Company's ability to engage in swap transactions or increase the cost or uncertainty involved in such transactions. See "*Risks Related to Regulatory Matters*." For example, the U.S., the UK, the EU and certain other jurisdictions have adopted minimum margin and capital requirements for uncleared derivatives transactions. It is expected that these regulations will have a material impact on the Company's use of uncleared derivatives. These rules impose minimum margin requirements on derivatives transactions between the Company and its swap counterparties and may increase the amount of margin the Company is required to provide. They impose regulatory requirements on the timing of transferring margin and the types of collateral that parties are permitted to exchange.

Some swaps are required to be executed on an exchange or on a swap execution facility. A swap execution facility is a trading platform where multiple market participants can execute derivatives by accepting bids and offers made by multiple other participants in the platform. While this execution requirement is designed to increase transparency and liquidity in the cleared derivatives market, trading on a swap execution facility can create additional costs and risks for the Company. For example, swap execution facilities typically charge fees, and if the Company executes derivatives on a swap execution facility through a broker intermediary, the intermediary may impose fees as well. In addition, the Company may be required to indemnify a swap execution facility, or a broker intermediary who executes cleared derivatives on a swap execution facility on the Company's behalf, against any losses or costs that may be incurred as a result of the Company's transactions on the swap execution facility.

***The Company may take positions in credit default swaps, total return swaps and other credit derivatives, and the counterparties of such transactions may default, become insolvent or have other credit risk. In addition, due to limited relevant case law and litigation, judicial interpretation of various provisions in derivatives is unclear.***

The Company may have exposure to credit default swaps, total return swaps and other credit derivatives, such as credit default index swaps, in connection with its positions and/or may enter into such derivatives for speculative or hedging purposes. These transactions generally provide for the transfer from one counterparty to another of certain credit risks and return characteristics inherent in the ownership of a financial asset such as a stock, bank loan or a debt security. Such risks include the risk of default and insolvency of the issuer of such asset, and the risk that the credit of the issuer or any underlying collateral will decline or that credit spreads for like assets will change, thus affecting the market value of the financial asset. The transfer of credit risk pursuant to a credit derivative may be complete or partial, and may be for the life of the related asset or for a shorter period. Credit derivatives may be used as a risk management tool for a pool of financial assets, providing the Company with the opportunity to gain exposure to one or more reference loans or other financial assets (each, a "reference asset") without actually owning such assets in order, for example, to reduce a concentration risk or to diversify the Company.

There are certain legal, tax and market uncertainties that present risks in entering into total return swaps and other credit derivatives. There is currently little or no case law or litigation characterizing total return swaps or other credit derivatives, interpreting their provisions or characterizing their tax treatment. In addition, additional regulations and laws may apply to total return swaps or other credit derivatives that have not heretofore been applied. There can be no assurance that future decisions construing similar provisions to those in any swap agreement or other related documents or additional regulations and laws governing total return swaps or other credit derivatives will not materially and adversely affect the Company's business, results of operations, financial condition and net worth. Recent turmoil in the securities market generally and among monoline insurers in particular has increased the volatility and other risks associated with these instruments.

The use of leverage will significantly increase the sensitivity of the market value of the total return swaps or other credit derivatives to changes in the market value of the reference assets. The reference assets are subject to the risks related to the credit of the underlying issuers, many of which are described herein. These risks include the possibility of a default or bankruptcy of the issuer or a claim that the pledging of collateral to secure a loan constituted a fraudulent conveyance or preferential transfer that can be subordinated to the rights of other creditors of the issuers or nullified under applicable law.

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***The Company's successful use of interest rate swaps depends on the Operating Manager's ability to correctly predict whether certain assets are likely to produce greater returns than other assets. The Operating Manager's predictions are in no manner guaranteed to prove correct.***

Interest rate swaps typically involve the exchange of the two parties' respective commitments to pay or receive interest on a notional principal amount, such as an exchange of floating rate payments for fixed rate payments. Whether the Company's use of interest rate swaps will be successful in furthering its objectives will depend on the Operating Manager's ability to predict correctly whether certain types of assets are likely to produce greater returns than other assets. The Company will also bear the risk that the Operating Manager will not accurately forecast future market trends, reference rates or the values of assets, indexes or other economic factors in establishing interest rate swap positions for the Company. There is no assurance that interest rate swaps will be available for utilization by the Company, or that they will be successful in any of their intended objectives. Any termination of an interest rate swap transaction could also result in a termination payment by or to the Company.

#### The Company could enter into repurchase or reverse repurchase agreements or similar transactions which involve the risk of market volatility.
*Reverse Repurchase Agreements*. Reverse repurchase agreements involve sales by the Company of its securities concurrently with an agreement by the Company to repurchase the same securities at a later date at a fixed price. During the reverse repurchase agreement period, the Company continues to receive principal and interest payments on the securities and has the opportunity to earn a return on the collateral furnished by the counterparty to secure its obligation to redeliver the securities.

Dollar rolls are transactions in which the Company sells securities for delivery in the current month and simultaneously contracts to repurchase substantially similar, with the same type and coupon, securities on a specified future date. During the roll period, the Company forgoes principal and interest paid on the securities. The Company is compensated by the difference between the current sales price and the forward price for the future purchase as well as by the interest earned on the cash proceeds of the initial sale.

If the buyer in a reverse repurchase agreement, dollar roll or similar transaction files for bankruptcy or becomes insolvent, the Company's use of proceeds from the sale of its securities may be restricted while the other party or its trustee or receiver determines whether to honor the Company's right to repurchase the securities. Furthermore, in that situation, the Company may be unable to recover the securities it sold in connection with a reverse repurchase agreement and as a result would realize a loss equal to the difference between the value of the securities and the payment it received for them. This loss would be greater to the extent the buyer paid less than the value of the securities the Company sold to it. In addition, reverse repurchase agreements entail many of the same risks as OTC derivatives. These include the risk that the counterparty to the reverse repurchase agreement may not be able to fulfill its obligations, that the parties may disagree as to the meaning or application of contractual terms, or that the instruments may not perform as expected.

*Repurchase Agreements*. The Company may enter into repurchase agreements with banks and broker-dealers. A repurchase agreement is a contract under which the Company acquires a security, usually an obligation of the government in the jurisdiction where the transaction is initiated or in whose currency the agreement is denominated, for a relatively short period, usually less than a week, for cash and subject to the commitment of the seller to repurchase the security for an agreed-upon price on a specified date. The repurchase price exceeds the acquisition price and reflects an agreed-upon market rate unrelated to the coupon rate on the purchased security. Repurchase agreements afford the Company the opportunity to earn a return on temporarily available cash without market risk, although the Company bears the risk of the seller defaulting in its obligation to pay the repurchase price when it is required to do so. Such a default may subject the Company to expenses, delays and risks of loss including: (i) possible declines in the value of the underlying security while the Company is seeking to enforce its rights thereto, (ii) possible reduced levels of income and lack of access to income during this period and (iii) inability to enforce its rights and the expenses involved in attempted enforcement. In the event of such a default, the Company could realize a loss on the sale of the underlying security to the extent that the proceeds of the sale including accrued interest are less than the resale price provided in the agreement including interest. In addition, if the seller becomes involved in bankruptcy or litigation proceedings, the Company may incur delay and costs in selling the underlying security or may suffer a loss of principal and interest if the Company is treated as an unsecured creditor and is required to return the underlying collateral to the seller's estate. In addition, repurchase agreements entail many of the same risks as OTC derivatives. These include the risk that the counterparty to the repurchase agreement may not be able to fulfill its obligations, that the parties may disagree as to the meaning or application of contractual terms, or that the instruments may not perform as expected.

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#### The Company faces risks associated with taking positions in structured notes and indexed securities, including volatility, illiquidity and the loss of deployed capital.
Structured notes are derivative debt securities, the interest rate or principal of which is determined by an unrelated indicator. Indexed securities include structured notes as well as securities other than debt securities, the interest rate or principal of which is determined by an unrelated indicator. Indexed securities may include a multiplier that multiplies the indexed element by a specified factor and, therefore, the value of such securities may be very volatile. The terms of the structured and indexed securities may provide that in certain circumstances no principal is due at maturity and therefore may result in a loss of deployed capital. Structured and indexed securities may be positively or negatively indexed, so that appreciation of the reference may produce an increase or a decrease in the interest rate or the value of the structured or indexed security at maturity may be calculated as a specified multiple of the change in the value of the reference; therefore, the value of such security may be very volatile. Structured and indexed securities may entail a greater degree of market risk than other types of debt securities because the investor bears the risk of the reference. Structured or indexed securities may also be more volatile, less liquid and more difficult to accurately price than less complex securities or more traditional debt securities. Structured securities also may involve significant credit risk and risk of default by the counterparty.

***The Company may enter into forward contracts that are not regulated or traded on exchanges. Market illiquidity or disruptions due to, for example, trading volume or political intervention could result in significant or total losses to the Company.***

The Company may enter into forward contracts and options thereon which are not traded on exchanges and are generally not regulated. There are no limitations on daily price movements of forward contracts, and forward contracts are not necessarily marked to market on a daily basis or otherwise subject to margin requirements. The Company may be required to deposit margin with respect to such trading. The Company's counterparties are not required to continue to make markets in such contracts and these contracts can experience periods of illiquidity, sometimes of significant duration. There have been periods during which certain counterparties have refused to continue to quote prices for forward contracts or have quoted prices with an unusually wide spread, the difference between the price at which the counterparty is prepared to buy and that at which it is prepared to sell. Arrangements to trade forward contracts may be available with only one or a few counterparties, and liquidity problems therefore might be greater than when numerous counterparties are available to enter into such arrangements. The imposition of credit controls by governmental authorities or the implementation of regulations pursuant to the Dodd-Frank Act might limit such forward trading to less than that which the Operating Manager would otherwise recommend, to the possible detriment of the Company. In addition, disruptions can occur in any market traded by the Company due to unusually high trading volume, political intervention or other factors. Market illiquidity or disruption could result in major losses to the Company.

In addition, the Company may be exposed to credit risks with regard to counterparties with whom it trades as well as risks relating to settlement default. Such risks could result in substantial losses to the Company.

#### The Company faces various risks associated with engaging in securities lending transactions, including counterparty risk.
The Company may engage in securities lending transactions with broker-dealers and other financial institutions. In such transactions, the Company would typically continue to receive interest or dividends on the securities it loans and would typically place the cash collateral in short-term instruments or funds that acquire short-term instruments. With respect to such transactions, the Company will be subject to risks such as (i) counterparty risk, such as delays in collateral recovery and losses of collateral rights if the borrower of the securities fails to return the securities loaned or becomes insolvent, (ii) the Operating Manager being unable to furnish additional collateral required by counterparties as a result of market movements or otherwise and (iii) risks associated with the instruments in which cash collateral is acquired, including losses experienced by and defaults of such instruments.

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#### If the Company engages in short sales, it may be exposed to a possible unlimited loss.
The Company is not generally expected to engage in short sales, but there could be specific situations in which the Company engages in such transactions to mitigate risk of capital loss. A short sale involves the sale of a security that the Company does not own in the expectation of purchasing the same security, or a security exchangeable therefor, at a later date at a lower price. A short sale involves a theoretically unlimited risk of an increase in the market price of the security sold short, increasing the cost of buying those securities to cover the short position, and thus a possible unlimited loss to the Company. There can be no assurance that the security necessary to cover a short position will be available for purchase or to be borrowed. Purchasing securities to close out the short position can itself cause the price of the securities to rise further, thereby exacerbating the loss. Securities borrowed to be sold short are generally required to be returned to the lender on short notice. Thus, the Company would be required to purchase the security at the market price. If the market price increases, the Company could be required to purchase the securities at a higher price in order to close out the short positions. This may result in losses to the Company.

Securities may be sold short by the Company in a long/short strategy to hedge a long position, or to enable the Company to express a view as to the relative value between the long and short positions. There is no assurance that the objective of this strategy will be achieved, or specifically that the long positions will not decrease in value and the short positions will not increase in value, causing the Company losses on both components of the transaction. In addition, when the Company effects a short sale, it may be obligated to leave the proceeds thereof with the broker and also deposit with the broker an amount of cash or other securities, subject to requirements of applicable law, that is sufficient under any applicable margin or similar regulations to collateralize its obligation to replace the borrowed securities that have been sold, thus exposing the Company to counterparty risk. The Company may gain similar economic exposure and be subject to similar risks through other assets, such as derivatives, that allow it to take short positions.

#### The Company faces the risk of price and yield fluctuations associated with taking positions in forward commitments and "when-issued" transactions.
The Company may purchase and sell securities or other instruments on a "when-issued" and "delayed delivery" basis. The payment obligation and the interest rate receivable on a forward-commitment, delayed delivery or when-issued security are fixed when the Company enters into the commitment, but the Company does not make payment until it receives delivery from the counterparty. No income accrues to the Company on such securities in purchase transactions prior to the date the Company actually takes delivery of the securities.

When purchasing or otherwise receiving a security on a when-issued, delayed delivery or forward-commitment basis, the Company assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. When the Company sells a security on a when-issued, delayed delivery or forward-commitment basis, the Company does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to deliver or pay for the securities, the Company could miss a favorable price or yield opportunity or could suffer a loss.

***The Company may take positions using options, the value of which can be adversely affected by, among others, the value of the underlying asset and the market for such option.***

The Company may purchase and sell put and call options of any type, including options on securities, both narrow- and broad-based indices, currencies, swaps, futures and forward contracts, U.S. government securities, commodities, realized volatility and realized variance. The Company may also acquire auto-hedged options.

The Company may purchase and sell both put and call options in standardized contracts traded on U.S. or non-U.S. securities exchanges, boards of trade or similar entities, or quoted on Nasdaq or on an OTC market, and agreements, sometimes called cash puts, which may accompany the purchase of a new issue of bonds from a dealer. The Company may write covered straddles consisting of a combination of a call and a put written on the same underlying security.

An option on a security or index is a contract that, in return for a premium, gives the holder of the option the right, but not the obligation, to buy from, in the case of a call, or sell to, in the case of a put, the writer of the option the security underlying the option, or the cash value of the index underlying the option, at a specified price.

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Purchasing put and call options, as well as writing such options, are highly specialized activities and entail greater than ordinary risks. For example, the seller ("writer") of an uncovered put or call option, in other words, where the writer has effectively a long or a short position in the underlying security, index, currency or instrument, assumes the risk. Such risk theoretically may be unlimited in the case of a written option, of a decrease or increase in the market price of the underlying security, index, currency or instrument below or above the sale or purchase price.

There are several risks associated with transactions in options on securities and on indexes. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful because of market behavior or unexpected events.

The value of options written by the Company will be affected by, among other factors, changes in the value of the underlying assets, including those comprising an index, changes in the dividend rates of underlying assets, including those comprising an index, changes in interest rates, changes in the actual or perceived volatility of the market and underlying asset, and the remaining time to an option's expiration. The value of an option may be materially and adversely affected if the market for the option is reduced or becomes less liquid.

In addition, since an American style option allows the holder to exercise its rights any time prior to expiration of the option, the writer of an American style option has no control over the time when it may be required to fulfill its obligations as a writer of the option.

The hours of trading for options on exchanges may not conform to the hours during which the underlying assets are traded. To the extent that the options markets close before or open later than the markets for the underlying assets, significant price and rate movements can take place in the underlying markets that may not be reflected in the options markets.

An exchange-traded option may be closed out by means of an offsetting transaction only on an exchange, which generally provides a liquid market for an option of the same series. If a liquid market for an exchange-traded option does not exist, the Company might not be able to effect an offsetting closing transaction for a particular option as described above.

National securities exchanges have established limits on the maximum number of options an investor or group of investors acting in concert may write or purchase. The Company, the Operating Manager and other clients of the Operating Manager and its affiliates constitute such a group.

The terms of OTC options, options not traded on exchanges, are generally established through negotiation with the other party to the option contract. While this type of arrangement allows the Company greater flexibility to tailor an option to its needs, OTC options generally involve greater credit risk than exchange-traded options, which are guaranteed by the clearing organization of the exchanges where they are traded.

No guarantee exists that the Company will be able to effect a closing purchase or a closing sale with respect to a specific option at any particular time.

***The Company may acquire warrants and rights which are likely to be less liquid and may have terms limiting the Company's ability to exercise such warrants or rights.***

The Company may purchase or otherwise receive warrants or rights. Warrants and rights generally give the holder the right to receive, upon exercise, a security of the issuer at a stated price. Risks associated with the use of warrants and rights are generally similar to risks associated with the use of options. Unlike most options, however, warrants and rights are issued in specific amounts, and warrants generally have longer terms than options. Warrants and rights are not likely to be as liquid as exchange-traded options backed by a recognized clearing agency. In addition, the terms of warrants or rights may limit the Company's ability to exercise the warrants or rights at such time, or in such quantities, as the Company would otherwise wish.

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#### The Company may enter into futures contracts that may be illiquid or otherwise difficult to exit.
A futures contract involves an agreement to buy and sell a specific quantity of an asset at a predetermined price on a future date. In general, futures contracts give rise to risks similar to those associated with derivatives transactions. Prior to exercise or expiration, a futures position typically can be terminated only by entering into an offsetting transaction, which requires a liquid secondary market on the exchange on which the original position was established. If a liquid secondary market does not exist, the Company may be unable (or delayed in its ability to) liquidate a position. Liquidity may also be impacted by "daily price fluctuation limits" (which limit trading to prices within an established range), trading halts, suspensions, exchange or clearing house equipment failures, government intervention, insolvency of a brokerage firm, clearing house or exchange or other disruptions of normal trading activity. The successful use of futures for speculative purposes is subject to the ability to correctly predict movements in the direction of the relevant market and, to the extent the transaction is entered into for hedging purposes, to ascertain the appropriate correlation between the transaction being hedged and the price movements of the futures contract.

#### Changes in currency exchange rates may affect the value, dividends, interest and sale of assets of the Company.
Assets of the Company may be denominated in, or linked to, currencies other than the U.S. dollar, and hence the value of such assets will depend in part on the relative strength of the U.S. dollar. The Company may be affected favorably or unfavorably by exchange control regulations or changes in the exchange rate between such currencies and the U.S. dollar. A change in the value of a non-U.S. currency relative to the U.S. dollar will result in a corresponding change in the dollar value of the Company's assets denominated in that non-U.S. currency as well as the dollar value of non-U.S. currency held by the Company. Changes in currency exchange rates may also affect the value of dividends and interest earned and gains and losses realized on the sale of securities held by the Company.

The Company may enter into forward currency exchange contracts or acquire currency futures contracts and options on currencies and futures as well as swap agreements and options on swaps for various reasons, including to hedge against currency exchange risk, to manage the Company's exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one currency to another. A forward currency exchange contract which involves an obligation to purchase or sell a specific currency at a future date at a price set at the time of the contract reduces the Company's exposure to changes in the value of the currency it will deliver and increases its exposure to changes in the value of the currency it will receive for the duration of the contract. The effect on the value of the Company is similar to selling securities denominated in one currency and purchasing securities denominated in another currency. A contract to sell foreign currency would limit any potential gain which might be realized if the value of the hedged currency increases.

The Company is not obligated to engage in any currency hedging operations, and there can be no assurance that the Company will engage in such transactions at any given time or from time to time. In addition, suitable hedging transactions may not be available in all circumstances, or such transactions may not be successful and may eliminate any chance for the Company to benefit from favorable fluctuations in relevant currencies. The Company may use one currency or a basket of currencies to hedge against adverse changes in the value of another currency or a basket of currencies when the Operating Manager believes that exchange rates between the two currencies are correlated. See "*—The Company may engage in a variety of over-the-counter and other derivative transactions as part of their hedging or other strategies, which may subject the Company to increased risk or adversely affect the Company's business. The Company could buy or sell options which involves the risk of losing the value of or incurring liability relating to those options*" above.

***Money market and other liquid instruments that the Company may acquire are subject to the risk of loss and may lower overall returns of the Company.***

The Company may acquire its assets in such liquid securities as the Operating Manager may deem to be advisable, including fixed income securities, money market instruments, money market mutual funds and debt securities issued or guaranteed by the United States, certain U.S. government agencies or instrumentalities. Money market instruments are short-term fixed income obligations, which generally have remaining maturities of one (1) year or less, and may include commercial paper, certificates of deposit and bankers' acceptances issued by domestic branches of U.S. banks that are members of the FDIC. The Company may be prevented from achieving its objectives during any period in which its assets are not substantially allocated in accordance with its strategy. Notwithstanding their general high-quality nature, money market funds and liquid securities are subject to the risk of loss.

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Among other liquid instruments, the Company is expected to hold cash, pending deployment, redeployment or distribution thereof or in connection with the maintenance of reserves, in Cash Management Vehicles.

***The Company is dependent on the manager or sponsor of pooled investment vehicles and pass-through entities and may have limited or no ability to influence such manager or sponsor's actions.***

The Company is expected to acquire or take short positions in pooled investment vehicle and pass-through entities, including affiliated or third-party unregistered investment vehicles, investment companies registered under the Investment Company Act (including exchange-traded funds and closed-end companies) and master limited partnerships ("Pooled Investment Vehicles") on a primary or secondary basis, including in a general partner-led secondary transaction or other recapitalization of an existing Pooled Investment Vehicle. See "*—The Company faces risks associated with acquiring secondary instruments, including incomplete information and the reduced ability to negotiate the structure of such instrument.*" Positions in Pooled Investment Vehicles may result in the Company bearing the fees and expenses of the Pooled Investment Vehicle, in addition to those of the Company. See "*—Potential Conflicts of Interest; Other Activities of the Operating Manager*." To the extent the Company directly holds Pooled Investment Vehicles and other "pass-through" entities, which are treated as partnerships for federal income taxation purposes, the Company must rely on such vehicles to deliver to it certain tax information that is necessary to complete the Company's own tax returns. If this information is not delivered to the Company in a timely fashion, the Company will be delayed in providing tax information to the Shareholders.

The Company will be dependent on the manager or sponsor of any Pooled Investment Vehicle and may have limited or no ability to influence such manager or sponsor's actions. Moreover, managers or sponsors of Pooled Investment Vehicles may have inconsistent interests with those of the Company and may take or block actions in a manner materially adverse to the Company's interests. The Company may have little opportunity to negotiate the terms of an interest in a Pooled Investment Vehicle and may receive incomplete or unreliable information in connection with evaluating any such interest. The Company's ability to withdraw from or transfer its interest in certain Pooled Investment Vehicles will also typically be limited.

In some cases, the Company may make or dispose of its interest in one or more Pooled Investment Vehicles in secondary transactions. Approval of the sponsors of Pooled Investment Vehicles will often be required to effect any such secondary purchase or sale and there can be no assurances that such approval will be given. In addition, the price paid or received by the Company may represent a substantial mark-up or discount relative to its valuation or the amount of capital contributed. The Company may be required to agree to (a) undertake certain liabilities relating to the Pooled Investment Vehicle incurred before it is purchased or (b) retain certain liabilities relating to the Pooled Investment Vehicle even after it is sold, which in each case may require the Company to incur certain contingent liabilities, including in respect of indemnification obligations. Some Pooled Investment Vehicles have the right to recall distributions to their holders, and the Company may be forced to recall distributions to Shareholders or otherwise reserve amounts to satisfy such obligations, which may prevent the Company from pursuing other opportunities.

When permitted by applicable law and subject to and in accordance with the terms of the LLC Agreement, the Company may acquire or dispose of the Pooled Investment Vehicles in trades between the Company, on one side, and portfolio companies of PIMCO or other PIMCO Clients, on the other side. Conflicts of interest or regulatory issues relating to these transactions could arise which could limit the Company's decision to engage in these transactions. In connection with a cross trade or a principal transaction, the Operating Manager and/or its affiliates may have a potentially conflicting division of loyalties and responsibilities regarding the Company and the other parties involved in such trade or transaction. The policies and procedures that the Operating Manager has developed to address those types of conflicts may prove inadequate and impact Company performance. However, there can be no assurance that such transactions will be effected, or that such transactions will be effected in the manner that is most favorable to the Company as a party to any such transaction. See "*—Potential Conflicts of Interest; Other Activities of the Operating Manager*" below.

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The Company may engage in transactions with Pooled Investment Vehicles that involve high levels of complexity, such as spin-outs, initial public offerings, acquisitions of cornerstone positions, portfolios of co-investments and direct interests and fund restructurings. These transactions may present additional risks that are not present in primary transactions or more traditional secondary interest transactions. In particular, any such transaction will typically involve higher transaction costs, increased regulatory risk and the consent of or negotiations with the Pooled Investment Vehicle's sponsor and/or underlying investors and other qualification requirements that may make such purchase or a sale of an asset more difficult or, ultimately, prevent it.

#### The Company faces risks relating to REITs, including the risks associated with direct ownership of real estate.
Holding interests in real estate (including through an interest in a REIT that holds real estate) will subject the Company to many of the risks associated with direct ownership of real estate, such as losses from casualty, condemnation or mismanagement and changes in local and general economic conditions, supply and demand, interest rates, zoning laws, regulatory limitations on rents, property taxes and operating expenses. In addition, the Company's holding in a REIT may subject the Company to certain tax risks. REITs are not subject to entity level tax, provided that they comply with certain stringent and complex requirements. If a REIT which the Company holds fails to meet the relevant qualification tests, such REIT may become subject to material taxation or other penalties, which could result in losses for the Company.

***The Company faces risks associated with acquiring U.S. government and agency securities, including downgrades and the credit risk that such securities may not be supported by the full faith and credit of the U.S. government.***

The Company is expected to acquire debt securities issued or guaranteed by certain U.S. government agencies, instrumentalities and sponsored enterprises. Some U.S. government securities, such as Treasury bills, notes and bonds, are supported by the full faith and credit of the United States; others are supported by the right of the issuer to borrow from the U.S. Treasury; others are supported by the discretionary authority of the U.S. government to purchase the agency's obligations; and still others are supported only by the credit of the instrumentality. Although U.S. government-sponsored enterprises, such as Fannie Mae and Freddie Mac, may be chartered or sponsored by Congress, they are not funded by Congressional appropriations, and their securities are not issued by the U.S. Treasury or supported by the full faith and credit of the U.S. government and involve increased credit risks. In addition, certain governmental entities have been subject to regulatory scrutiny regarding their accounting policies and practices and other concerns that may result in legislation, changes in regulatory oversight and/or other consequences that could materially adversely affect the credit quality, availability or character of securities issued by these entities.

***The Company may dispose of its assets through various methods, each of which is subject to risks, including, among others, legal risk or breaches of representations and warranties.***

The Company may dispose of its assets through whatever manner it deems to be advisable, including through asset sales; repackaging transactions; securitizations; selling to a strategic or financial investor; initial public or secondary offerings; separating an enterprise into separate functional entities, disposing of some and retaining the balance; leveraging a company and distributing cash; selling or converting a specific security; out of court exchange offers, where debt is exchanged for cash and/or different securities; recapitalizations; liquidations; strategic transactions and other mergers and acquisitions activity and/or any combination thereof. Therefore, the disposition of Company assets will be subject to the risks associated with the particular exit strategy utilized. In particular, certain disposition techniques and structures may expose the Company to liability for, among other things, securities laws violations, breaches of representations and warranties and repurchase or "putback" obligations with respect to securitizations or similar structures.

***The Company faces risks relating to reference rates, including fraud, changes to, or flaws in, the rate-setting process, new regulations or the removal of benchmarks.***

Certain financial institutions have in the past been accused by various regulators of manipulating certain reference rates, such as the London Interbank Offered Rate or "LIBOR", and have been alleged to have altered costs when reporting them to regulators. There can be no assurance that the rate-setting process for reference rates will not be affected by similar conduct in the future, or that the investigations into any rate-setting process and any related litigation will not result in disruptive changes in the process used to determine reference rates or will not affect the use of reference rates going forward. Therefore, the performance, availability or prices of the Company's assets which are based on reference rates, such as certain interest rate swaps, may be materially and adversely affected by misconduct in the rate-setting process for reference rates and/or as a result of future changes to such process or reference rates becoming no longer available.

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In addition, interest rates or other types of rates and indices which are classed as "benchmarks" have been the subject of ongoing national and international regulatory reform, including under the EU regulation on indices used as benchmarks in financial instruments and financial contracts (known as the "Benchmarks Regulation"). The Benchmarks Regulation has been enacted into UK law by virtue of the European Union (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the implementation of these reforms, the manner of administration of benchmarks has changed and may in the future change, with the result that they may perform differently than in the past, the use of benchmarks that are not compliant with the new standards by certain supervised entities is restricted, certain benchmarks are in the process of being eliminated entirely and there could be other negative consequences which cannot be predicted.

LIBOR was the offered rate for short-term Eurodollar deposits between major international banks. In connection with the global transition away from LIBOR led by regulators and market participants, LIBOR was last published on a representative basis at the end of June 2023. Alternative reference rates to LIBOR have been established in most major currencies and the transition to new reference rates continues. Markets in these new rates are developing, but questions around liquidity and how to appropriately mitigate any economic value transfer as a result of the transition remain a concern.

The elimination of the LIBOR benchmark or any other benchmark, or those benchmarks being non-compliant under any regulatory regime, changes in the manner of administration of any benchmark or actions by regulators or law enforcement agencies could result in changes to the levels of the published rates of certain benchmarks, or those benchmarks being discontinued or replaced and could involve, among other things, increased volatility or illiquidity in markets for instruments that rely on such benchmarks. The discontinuation or replacement of a benchmark could require an adjustment to the terms and conditions, including a value payment between the parties, or otherwise result in rates being determined in accordance with fallback provisions contained in the terms and conditions, or have other consequences, in respect of any debt or hedging linked to such benchmark, and there may be mismatches between the rates applicable to different types of financial contracts that are linked to the same benchmark. For example, certain assets may involve individual contracts that have no existing fallback provision or language that contemplates the discontinuation of LIBOR, and those assets could experience increased volatility or illiquidity as a result of the transition process. In addition, interest rate provisions included in such contracts, or in contracts or other arrangements may need to be renegotiated. On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act was signed into law in the U.S. This law provides a statutory fallback mechanism on a nationwide basis for certain contracts that reference USD-LIBOR and contain no, or insufficient, fallback provisions. Generally, the fallback mechanism replaces USD-LIBOR with a benchmark rate that is based on the Secured Overnight Financing Rate (SOFR) that has been selected by the Board of Governors of the Federal Reserve System pursuant to the implementing regulation it adopted in December 2022. The transition of an instrument from LIBOR to a replacement rate as a result of amendment, application of existing fallbacks, statutory requirements or otherwise may result in a reduction in the value of certain instruments held by the Company, or a reduction in the effectiveness of related transactions such as hedges. The discontinuation of LIBOR or changes to or discontinuation of other benchmarks could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

#### The Company faces general risks related to holding real estate, including the impact of state and federal regulations, general economic climate and liquidity.
The Company expects to make acquisitions of residential and possibly commercial real estate and real estate-related assets, such as RMBSs, and so will be directly and indirectly exposed to the risks of holding real estate generally. The real estate industry is extensively regulated and subject to frequent regulatory change. The adoption of new government laws and regulations, including laws and regulations with respect to usage, improvements, disclosures, leasing, zoning and taxes, or changes in, or new interpretations of, existing laws can have a significant impact on methods of doing business, costs of doing business and amounts of reimbursement from governmental and other agencies. The real estate industry is and will continue to be subject to varying degrees of regulation and licensing by federal and state regulatory authorities in various states and localities. The Company may be required to incur significant costs to comply with any future changes in such laws or regulations. However, non-compliance with the

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existing or future laws and regulations to which each real property is subject could result in substantial capital expenditures to bring the relevant real property into compliance, as well as the imposition of fines or an award of damages to private litigants, which might materially and adversely affect the Company. In addition, real estate assets are subject to a variety of inherent risks, some of which are described in more detail below, that may have an adverse impact on the values of, and returns, if any, from, such assets, including: changes in the general economic climate, local conditions, such as an oversupply of space or a reduction in demand for space, the quality and philosophy of management, competition based on rental rates, attractiveness and location of the properties, physical condition of the properties, the financial condition of tenants, buyers and sellers of properties, the quality of maintenance, insurance and management services, changes in operating costs, interest rate levels, the availability of financing, potential liability under environmental and other laws, including costs of remediation and liabilities associated with environmental conditions, energy prices, the ongoing need for capital improvements, tenant default or distress, construction risks, as well as natural catastrophes (such as earthquakes, hurricanes, floods, pandemics and other natural disasters), acts of war, terrorism, civil unrest, vandalism, uninsurable losses and other factors beyond the Company's control. The Company is also exposed to the risk of mismanagement of the real estate assets by third parties, including portfolio companies, Joint Venture operating partners and asset managers, agents, servicers and developers, and there can be no assurance that such risk will be alleviated where such third parties are affiliated with the Company or PIMCO. In addition, there is no assurance that there will be a ready market for resale of assets because real estate assets generally are not liquid. Illiquidity may result from the absence of an established market for the assets, as well as from contractual restrictions in agreements with third-party operating partners. Real estate historically has experienced significant fluctuations and cycles in value, and the Company may buy and/or sell assets at less than optimal times.

#### Characterization of the Company's sale-leaseback transactions could jeopardize the amount of capital gain recognized by the Company.
If a sale-leaseback transaction were recharacterized as a financing arrangement, the Company would not be entitled to depreciation deductions with respect to the related real estate or equipment, and the rental or lease payments received by the Company and, in certain circumstances, any gain on the sale of the related real estate or equipment would be treated, at least in part, as interest income. Such a recharacterization could increase the amount of ordinary income and decrease the amount of capital gain recognized by the Company.

#### The Company faces risks associated with lending against equipment, such as default risk and the costs associated with a non-performing lessee.
In a loan against equipment transaction, also known as a sale leaseback, equipment is sold on paper by the seller and leased back. The seller obtains working capital and keeps the equipment on their property. As with equipment leasing, there are considerable costs associated with terminating such loans and retrieving hard assets if a borrower fails to make timely payments on the loan. Further, the value of the subject equipment will decline over time as a result of use by the borrower, reducing the value of the collateral backing the loan and increasing the risk that the Company will lose money in the event of borrower default. The Company is expected to also engage in equipment leasing, which may expose the Shareholders to considerable risk. In cases of a non-performing lessee, there are considerable costs associated with terminating leases and retrieving hard assets that can disrupt and reduce cash flow. These risks may be exacerbated in the case of lessee bankruptcy. Further, it may be difficult to re-lease or sell retrieved equipment, depending on market conditions, especially if such equipment is outdated or has been misused.

#### The Company faces general financial, cash flow and operational risks associated with real estate assets.
As a result of interests in mortgages and other positions secured by real estate-related assets, the Company may be subject to certain underlying risks and restrictions incident to the ownership and operation of real estate, including (i) risks associated with the general economic climate; (ii) local real estate conditions; (iii) risks due to dependence on cash flow; (iv) risks and operating problems arising out of the absence of certain construction materials; (v) design, construction or other defects requiring unforeseen capital expenditures; (vi) changes in supply of, or demand for, competing properties in an area (as a result, for instance, of over-building or changes in the relative popularity of property types and locations); (vii) the financial condition of tenants, buyers and sellers of properties; (viii) changes in availability of financing; (ix) energy and supply shortages and fluctuations in energy prices; (x) laws, local governmental regulations and various administrative guidelines relating to real estate lending, management

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and/or ownership that are complex or unclear or otherwise difficult to comply with; (xi) changes in tax, real estate, environmental and zoning laws and regulations (and unanticipated expenditures in connection therewith); (xii) various uninsured or uninsurable risks; (xiii) natural disasters; (xiv) risks related to tenants operating in regulated industries such as banking, insurance, gaming, hazardous materials or communications; and (xv) the ability of the Company or third-party Service Providers to manage the real properties.

***The Company faces risks associated with the development, redevelopment and renovation of acquired properties, including, among others, availability of financing, unanticipated costs and delays and delayed cash flow.***

The Company is expected to from time to time make acquisitions with exposure to properties in need of substantial development, redevelopment or renovation or in new properties. In addition to the risks inherent in the ownership of any real property, risks associated with new project development, redevelopment and major renovation work include risks of the availability of construction financing and the risks of construction delays (including the risks of strikes, shortages of materials, adverse weather conditions, uninsurable losses and other factors beyond the Company's control), significant cost overruns that may increase project costs, risks that the properties will not achieve anticipated sales prices or occupancy levels or sustain anticipated rent levels and new project commencement risks, such as the failure to obtain entitlement, zoning, occupancy and other required governmental permits and authorizations and the incurrence of development costs in connection with projects that are not pursued to completion. In addition, market conditions may change during the course of development making such acquisitions less attractive than at the time they were commenced. Properties under development may receive little or no cash flow from the date of acquisition through the date of completion of development and may still experience operating deficits well after the date of completion. Newly developed or newly renovated properties do not have the operating history that would allow the Company to make objective pricing decisions in determining whether to deploy the Company's capital in these properties. For all of these reasons, development, redevelopment and renovation projects entail risks that assets may not perform in accordance with expectations and can carry an increased risk of litigation (and its attendant risks) with contractors, subcontractors, suppliers, development and/or operating partners and others. In addition, these risks could result in substantial unanticipated expenses or delays, and under certain circumstances, could prevent the completion of development, redevelopment or renovation activities.

***The Company faces the risk of defects and property-level liabilities in the Company's assets that may be difficult to ascertain and may impair the value of such assets.***

The Company's properties and properties underlying the Company's assets may have design, construction, title, environmental or other defects or problems that require unforeseen capital expenditures, special repair or maintenance expenses, the payment of damages to third parties, or otherwise reduce the value of the Company's assets. Engineering, seismic and other reports on which the Company relies as part of its pre-acquisition due diligence investigations of these properties may be inaccurate or deficient, at least in part because defects may be difficult or impossible to ascertain. Due diligence may not reveal or highlight matters that could have a material adverse effect on the value of assets. Statutory or contractual covenants, representations and warranties made by various contractual counterparties relating to properties that the Company acquires exposure to may not protect the Company from liabilities arising from defects, and in many circumstances the Company may gain exposure to property on an "as-is" basis, where the Company waives, or does not obtain, statutory or contractual covenants, representations and warranties. Furthermore, after divesting its exposure to a property in its portfolio, the Company may continue to have statutory or contractual liability with respect to such property, including statutory warranty obligations to the purchaser if any latent defects in such property are subsequently discovered, liability relating to environmental matters or contractual liability.

***The Company may have exposure to properties that face the risk of uninsurable losses. If such loss occurs, the Company may lose both capital and anticipated revenues from the affected properties.***

The Company is expected to from time to time have exposure to properties that may be covered by comprehensive liability, fire, flood and extended insurance coverage. There are, however, types of losses (such as from hurricanes, floods, wars, terrorist attacks, pandemics or earthquakes or other natural or man-made disasters or casualty events) which may be uninsurable, or the cost of insuring against these losses may not be economically justifiable. If an uninsured loss occurs or a loss exceeds policy limits, the Company could lose both its capital and anticipated revenues from the affected properties, thereby reducing the Company's returns (if any). In general, losses

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related to terrorism are becoming harder and more expensive to insure against. Most insurers are excluding terrorism coverage from their all-risk policies. In some cases, the insurers are offering significantly limited coverage against terrorist acts for additional premiums, which can greatly increase the total costs of casualty insurance for a property. As a result, not all of the Company's real estate assets may be insured against terrorism. Further, the Company or its tenants may not maintain adequate insurance coverage against liability for personal injury and property damage in the event of accidents or other casualty events in connection with such properties.

#### Force majeure events such as natural disasters may adversely affect the Company's assets.
Damage to the real estate underlying the Company's assets due to fires, earthquakes, floods, pandemics or other natural or man-made disasters or casualty events could materially and adversely affect the Company's business, results of operations, financial condition and net worth. In addition, a portion of the Company's assets will be mortgaged loans secured by, or other assets that derive their value from, real property, and the occurrence of a natural disaster could impair the value of the collateral and thereby negatively affect the financial condition and results of the Company. Insurance may not be obtained and any insurance, even if obtained, may be insufficient to compensate the Company in the event of a natural disaster. Any future disasters may also adversely affect the liquidity of both affected and unaffected assets.

#### The Company faces litigation risks associated with acquisition, ownership or disposition of real property.
Any acquisition, ownership or disposition of real properties entails certain litigation risks. Litigation may be commenced with respect to a property acquired by the Company in relation to activities that took place prior to the Company's acquisition of such property.

***The Company faces risks involved in acquiring assets that are leased to tenants, including the risk of default by the tenant. The return on such assets materially depends on the financial stability of its tenants.***

The Company may engage in acquisition of real properties and related assets that are leased to tenants. Therefore, the financial failure of, or other default by, tenants under their lease is likely to cause a significant, if not complete, reduction in the operating cash flow generated by the property leased to the tenants and might decrease the value of that property. The success of the Company's assets will be materially dependent on the financial stability of these tenants. Lease payment defaults by tenants will negatively impact the Company's net income. In addition, if a tenant at a single-user facility, which has been designed or built primarily for a particular tenant or a specific type of use, fails to renew its lease or defaults on its lease obligations, the Company may not be able to readily market a single-user facility to a new tenant, if at all, without making substantial capital improvements or incurring other significant re-leasing costs. Further, the Company may enter into leases containing co-tenancy provisions. Co-tenancy provisions may allow a tenant to exercise certain rights if, among other things, another tenant fails to open for business, delays its opening or ceases to operate, or if a percentage of the property's gross leasable space or a particular portion of the property is not leased or subsequently becomes vacant. A tenant exercising co-tenancy rights may be able to abate minimum rent, reduce its share or the amount of its payments with respect to common area operating expenses and property taxes or cancel its lease. In addition, the bankruptcy of a tenant could cause the loss of lease payments, an increase in the costs incurred to carry the property and related assets, or a rejection of the lease itself. Not only could the damages claim resulting from a post-petition lease rejection be a pre-petition claim, but the calculation of such damages may be capped by the provisions of the U.S. Bankruptcy Code. In the event of a default, the Company may experience delays in enforcing its rights as landlord and may incur substantial costs in protecting the asset and re-leasing the property. If a lease is terminated, there can be no assurance that the Company will be able to re-lease the property for the rent previously received or sell the property without incurring a loss. In addition, revenues from certain of the Company's major tenants and/or their guarantors could constitute a significant percentage of the Company's base rental revenues. The default, financial distress or bankruptcy of any of the tenants and/or guarantors of these properties could cause interruptions in the receipt of lease revenues and/or result in vacancies, which would reduce the Company's revenues and increase Operating Expenses until the affected property is re-let, and could decrease the ultimate sales value of that property. Other risks attendant to a bankruptcy filing are discussed above.

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#### The Company faces risks associated with acquiring properties subject to ground leases that could impair the Company's interest in such leases.
The Company is expected to acquire leasehold interests in respect of properties that are the subject of a ground lease, where third-party owners hold the fee interest in those properties (each, a "Fee Owner"). This means that while the Company has a right to use the property, it does not hold fee title to the underlying land. In such cases, the Company's interest in such a property will be subordinate to the Fee Owner's interest in that property, and the Company's interest in the leasehold will be subject not only to the potentially competing interests of the Fee Owner, but also to interests held by third parties, such as mortgages or other liens (*e.g.*, mechanic's liens) that encumber the Fee Owner's fee interest and which may be superior and potentially adverse to the interests of the Company. A default by the Fee Owner under any of these competing interests and the enforcement or foreclosure of those interests by the holders thereof may also result in the termination or impairment of the Company's leasehold interest. In addition, any bankruptcy or insolvency of the Fee Owner could potentially impair or terminate the Company's leasehold interest. This risk is increased if the fee interest were itself subject to financing liens. In the event of the Fee Owner's bankruptcy, there can be no assurance that a tenant will not acquiesce in a rejection or disaffirmance of the lease by the Fee Owner or its trustee in bankruptcy, or that the Fee Owner's bankruptcy trustee will not seek to sell the property free and clear of the lease.

#### The Company faces the risk of environmental liabilities associated with properties that have undisclosed or unknown environmental, health or occupational safety matters.
The Company is expected to from time to time take positions with exposure to properties that have substantial risk of loss from environmental claims arising from its properties involving undisclosed or unknown environmental, health or occupational safety matters, or problems with inadequate reserves, insurance or insurance proceeds for such matters that have been previously identified. The particular environmental laws that apply to any given community vary greatly according to the community site, the site's environmental conditions and the present and former use of the site. Environmental laws may result in delays, may cause the Company to incur substantial compliance and other costs and may prohibit or severely restrict development in certain environmentally sensitive regions or areas. Under various national, federal, state and local laws, ordinances and regulations, an owner of real property may be liable for the costs of removal or remediation of certain hazardous or toxic substances on or in such property. Such laws may impose joint and several liability, which can result in a party being obligated to pay for greater than its share, or even all, of the liability involved. Such liability may also be imposed without regard to whether the owner knew of, or was responsible for, the presence of such hazardous or toxic substances. The cost of any required remediation and the owner's liability therefor as to any property are generally not limited under such laws and could exceed the value of the property and/or the aggregate assets of the owner. The presence of such substances, or the failure to properly remediate contamination from such substances, may materially and adversely affect the owner's ability to sell the real estate or to borrow funds using such property as collateral, which could materially and adversely affect the Company's business, results of operations, financial condition and net worth. Environmental claims with respect to a specific asset may exceed the value of such asset, and under certain circumstances, subject the other assets of the Company to such liabilities. In addition, even in cases where the Company is indemnified by the seller with respect to an asset against liabilities arising out of violations of environmental laws and regulations, there can be no assurance as to the financial viability of the seller to satisfy such indemnities or the ability of the Company to achieve enforcement of such indemnities.

#### The Company faces the risk of state law restrictions on ownership of real property.
Certain U.S. states have proposed, recently enacted or are in the process of adopting new legislation (including Senate Bill 264 in the State of Florida) that restricts the ability of a wide range of governmental bodies and persons or entities from or domiciled in foreign countries of concern to directly or indirectly own or acquire interests in "real property" (*e.g.*, land, buildings, fixtures and all other improvements to land) located in the relevant states, subject to certain limited exceptions (such laws as in effect from time to time, the "State Real Estate Laws"). Certain Portfolio Assets acquired by the Company or its subsidiaries may constitute acquisitions in "real property" for purposes of these laws (such Portfolio Assets, "Restricted Interests"). In the event that the any of the Company's direct or indirect shareholders are residents of or domiciled in any foreign country of concern, as defined in the applicable U.S. state's laws, such as the People's Republic of China (any such direct or indirect shareholder, a "Covered Shareholder"), the Company may be required to restrict the indirect ownership of any Restricted Interests by such

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Covered Shareholders. The Operating Manager may determine, in accordance with the LLC Agreement, whether to restrict such indirect ownership (i) by excluding Covered Shareholders from the relevant Restricted Interest(s) or (ii) by causing the mandatory withdrawal of such Covered Shareholders from the Company. Any such determination by the Operating Manager may increase the *pro rata* interest of each shareholder that is not a Covered Shareholder in that particular Restricted Interest (in the case of an exclusion) or in all future Portfolio Assets (in the case of a mandatory withdrawal) and may decrease the *pro rata* interest of each Shareholder that is not a Covered Shareholder in all Portfolio Assets that are not Restricted Interests (in the case of an exclusion). In addition, any such determination by the Operating Manager may increase the *pro rata* interest of each Covered Shareholder in all Portfolio Assets that are not Restricted Interests (in the case of an exclusion).

Given the developing nature of the State Real Estate Laws, it is difficult to predict the full scope of their impact on the Company's Portfolio Assets and investor base. It is possible that state legislators and/or regulators may, in the future, issue guidance indicating that the exclusion of a Covered Shareholder from a particular Restricted Interest is insufficient to comply with the relevant legislation. If this occurs, the Company as a whole may be prohibited from making Restricted Interest on a going-forward basis, or the Company may be required to cause the mandatory withdrawal of all Covered Shareholder to avoid a violation of the applicable State Real Estate Law. Any of these outcomes could make it difficult for the Company to act successfully on opportunities and may materially and adversely affect the Company's business, results of operations, financial condition and net worth.

The State Real Estate Laws present certain risks and conflicts regarding valuation of Restricted Interests. In certain situations, State Real Estate Laws may permit the indirect ownership of debt interests in Restricted Interests by Covered Shareholders, but require disposal of any equity interest in a Restricted Interest acquired via a foreclosure within a specified period of time.

The Company intends to comply with the State Real Estate Laws, and may, to comply with such laws, release confidential information about any Shareholder and, if applicable, any underlying beneficial ownership, to applicable authorities if the Company, the Operating Manager and/or the Administrative Agent, each in its sole discretion, determines that it is in the best interests of the Company or its affiliates in light of the relevant laws or regulations or upon the request of regulators. By purchasing Shares, each Shareholder agrees to the release of any such information and to provide such additional information as reasonably requested by the Company, the Operating Manager and/or the Administrative Agent.

#### The Company faces uncertainties associated with equipment loans and leasing arrangements.
There are a number of uncertainties associated with airplane, vehicle and equipment loans or leasing arrangements that may materially and adversely affect the Company's business, results of operations, financial condition and net worth. These include: (i) fluctuations in demand, interest rates and inflation rates; (ii) the continuing economic life and value of such assets; (iii) the technological and economic obsolescence of such assets; (iv) potential defaults by borrowers, lessees or other counterparties; and (v) increases in expenses associated with such assets, including taxes and insurance expenses.

#### The Company faces risks related to engaging in equipment leasing, including considerable costs in relation to enforcing the terms such leases.
The Company is expected to engage in equipment leasing, which may expose the Company to considerable risk. In cases of a non-performing lessee, there are considerable costs associated with terminating leases and retrieving hard assets that can disrupt and reduce cash flow. These risks may be exacerbated in the case of lessee bankruptcy. Further, it may be difficult to re-lease or sell retrieved equipment, depending on market conditions, especially if such equipment is outdated or has been misused.

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***The Company faces risks related to acquiring assets in the aviation industry, a highly cyclical business significantly impacted by, among others, regulations, market trends, the strength of the local and global economy and consumer sentiment.***

Airline business and results of operations are significantly impacted by general economic and industry conditions. The airline industry is highly cyclical, and the level of demand for air travel is correlated to the strength of the U.S. and global economies. Robust demand for air transportation services depends on favorable economic conditions, including the strength of the domestic and foreign economies, low unemployment levels, strong consumer confidence levels and the availability of consumer and business credit. In addition, airlines are subject to extensive regulatory oversight. Compliance with U.S. and international regulations imposes significant costs and may have adverse effects on an airline.

In addition to factors linked to the aviation industry, other factors that may affect the value of an aircraft at any time include: (i) the particular maintenance and operating history of the related airframe and engines; (ii) manufacture and type or model of aircraft or engines, including the number of operators using such type or model; (iii) whether the aircraft is subject to a lease and, if so, whether the lease terms are favorable to the lessor; (iv) the age of the aircraft; (v) the advent of newer models of such aircraft or aircraft types competing with such aircraft; (vi) any tax, customs, regulatory and legal requirements that must be satisfied when an aircraft is purchased, sold or released; (vii) compatibility of aircraft configurations or specifications with other aircraft operated by operators of that type of aircraft; (viii) regulatory actions, including mandatory grounding of the aircraft; (ix) any renegotiation of a lease on less favorable terms; (x) decreases in creditworthiness of lessees; (xi) manufacturing quality and quality control; and (xii) the availability of spare parts. Any decrease in values of and lease rates for used commercial aircraft which may result from the above factors or other unanticipated factors may materially and adversely affect the Company's business, results of operations, financial condition and net worth.

***The Company may acquire assets in the railcar industry, which is highly cyclical and may result in lower returns during economic downturns or due to other factors, including a change in environmental regulations or other regulatory requirements and competitive pricing.***

The railcar industry is highly cyclical and may result in lower returns during economic downturns or due to other factors, including a change in environmental regulations or other regulatory requirements and competitive pricing. Increases to railcar sales may or may not continue. Reductions in oil prices may result in reduced demand for U.S. oil, and thus drive down demand for railcars that service the crude oil industry. The use of railcars as a significant mode of transporting freight could decline over time in favor of other more economic modes of transportation, and operations could be materially and adversely affected by changes in the preferred method to ship products. Further, fluctuations in the supply of components and raw materials necessary to manufacture railcars, which are often only available from a limited number of suppliers, could cause production delays or reductions in the number of railcars that can be manufactured. In addition, the nature of the railcar industry exposes it to potential claims for and litigation related to personal injury and property damage, environmental claims and various other matters.

***Adverse changes to factors beyond the Company's control, including market conditions, economic trends, government policies, terrorism and ability to secure financing, could detrimentally affect the Company's ability to acquire attractive assets in the shipping industry.***

The Company may acquire assets in the shipping industry, which may include shipping assets (including containerships, dry bulk vessels, tankers, tugs and barges and their related-containers), and other public or private shipping-related assets. The ability of the Company to acquire attractive shipping-related assets may be subject to a variety of considerations, including general supply/demand trends, overall economic development and growth, general market conditions, socioeconomic changes and changes relating to governmental spending and related policies. Any adverse or unexpected changes in such conditions could materially and adversely affect the Company's ability to acquire attractive shipping-related assets. The international shipping market is highly competitive, and the Company may not be able to compete successfully. The cyclical nature of the shipping industry may lead to decreases in shipping rates, which indirectly may reduce returns to the Company. The shipping industry has inherent operational risks that may not be adequately covered by certain operators' insurance. With regard to dry bulk shipping, global economic conditions may continue to affect the dry bulk shipping industry. Current global conditions have and may continue to have a number of material adverse consequences for dry bulk and other shipping sectors, including, among other things: (i) low charter rates; (ii) decrease in market value of dry bulk vessels and limited secondhand market for the sale of vessels; (iii) limited financing for vessels; (iv) widespread loan covenant defaults; (v) terrorism and international hostilities; and (vi) the declaration of bankruptcy by certain vessel operators, vessel owners, shipyards or charterers.

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***Although the perceived value of intangible assets that the Company may acquire depends on protecting its intellectual property rights or licenses, such protection cannot be guaranteed.***

The Company is expected to acquire intangible assets, such as intellectual property and licenses, and royalties associated therewith. In many cases, the perceived value of such Portfolio Assets is dependent upon protecting proprietary rights with respect to one or more products ("Portfolio Products"). In many cases, a party's ability to pay the required royalty, or the Company's ability to realize a positive increase in the value of a Portfolio Asset with respect to a Portfolio Product, depends on obtaining and maintaining patent and trade secret protection of Portfolio Products, their use and the methods used to manufacture them, as well as successfully defending those intellectual property rights against third-party challenges. The degree of future protection to be afforded to Portfolio Products is uncertain because legal means afford only limited protection and may not adequately protect the rights of the entities with an interest in the Portfolio Product (an "Interested Party") or permit them to gain or keep their competitive advantage. It is difficult and costly to protect the proprietary rights associated with Portfolio Products, and their protection cannot be ensured. There can be no assurance that any issued patents underlying Portfolio Products will provide sufficient protection to allow Interested Parties to conduct their business in the ordinary course. Interested Parties may incur substantial costs as a result of result of litigation or other proceedings relating to patent and other intellectual property rights related to Portfolio Products and they may be unable to protect their rights to, or commercialize, the applicable Portfolio Products. Moreover, there can be no assurance that Interested Parties will remain free from intellectual property infringement claims by third parties. If a third party claims that an Interested Party is using inventions covered by the third party's intellectual property rights, that third party may go to court to stop the Interested Party from engaging in its business in the ordinary course, which would likely materially and adversely impact the value of the Company's related Portfolio Asset. Intellectual property infringement lawsuits are costly, would likely affect the results of operations of the Interested Party and divert the attention of their management.

In addition, certain of the Company's Portfolio Assets are expected to relate to Portfolio Products which are still in development or have not otherwise received the required regulatory approvals (if any). A failure to gain such required regulatory approval would materially and adversely affect those Portfolio Assets. Regulatory approval processes may be extensive, time consuming and uncertain and may prevent Interested Parties from obtaining approvals for the commercialization of some Portfolio Products.

***The Company may acquire insurance products, which are subject to changing industry practices and market conditions and the full extent of liability as a result of such changes may not be known for many years following the Company's acquisition of such products.***

The Company is expected to acquire in niche asset classes such as the insurance capital markets, which include insurance-linked securities, insurance securitizations, catastrophe bonds, life insurance/life annuity combination bonds, structured settlements, insurance reserve financing, mortality/longevity swaps, life settlements, premium finance loans and other similar ABSs or instruments. These are specialized asset classes with unique risks, any of which could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

As industry practices and legal, judicial, social and other environmental conditions change, unexpected and unintended issues related to claims and coverage may emerge. These issues may adversely affect the Company's positions in certain insurance-linked instruments and in some instances, these changes may not become apparent until these instruments are affected by these changes. As a result, the full extent of liability as a result of these changes may not be known for many years following the Company's acquisition of such instruments. In addition, in recent years, the insurance and reinsurance regulatory framework has been subject to increased scrutiny in the United States and various states within the United States.

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In the past, there have been Congressional and other initiatives in the United States regarding increased supervision and regulation of the insurance industry. It is not possible to predict the future impact, if any, of changing law or regulation on the operations of the Company. For example, many regulators, lawmakers and other governmental authorities, as well as many insurance companies and insurance industry organizations, are hostile to, or otherwise concerned about certain aspects of, the life settlement and premium finance markets. The life settlement industry and some of its participants have also been, and may continue to be, portrayed negatively in a number of widely read publications and other forms of media. These opponents regularly contend that life settlement and premium finance transactions are contrary to public policy by promoting financial speculation on human life and often involve elements of fraud and other wrongdoing. Continued public and political opposition to the life settlement and premium finance industries, as well as actual or alleged wrongdoing by participants in the industries, could materially and adversely affect the Company's business, results of operations, financial condition and net worth.

***The Company may gain exposure to the financing of legal or regulatory claims, which may be later prohibited by applicable laws, delayed in collecting financial awards, subject to unfavorable legal developments and cannot be controlled by the Company.***

The Company is expected to participate in, or otherwise gain exposure to, the financing of legal or regulatory claims, processes and/or matters related thereto ("Legal/Regulatory Finance Interests"). Legal/Regulatory Finance Interests are subject to numerous risks. In particular, (i) applicable laws and professional regulations may prohibit or restrict Legal/Regulatory Finance Interests; (ii) a holder of a Legal/Regulatory Finance Interests is generally unable (or significantly limited in its ability) to impact or control the relevant action; (iii) there may be significant difficulties or delays in collecting any judgments or awards; (iv) there may be unfavorable case developments; and (v) acquiring Legal/Regulatory Finance Interests may subject the Company to reputational, legal and regulatory risks, including the risks of investigation and litigation.

***The Company faces risks related to life settlement contracts, which depend, among other things, on the life expectancy of the insured, the forecasting of which cannot be guaranteed.***

The Company is expected to acquire or otherwise gain exposure to life settlement contracts and related instruments. Life settlement contracts are transfers of the beneficial interest in a life insurance policy, generally at a price that is more than the cash surrender value but at a discount to the full face value, by the underlying insured person to a third party. The purchaser is generally responsible for premiums payable on the policy and is entitled to receive the full face value from the insurance company upon the death of the insured. In general, the longer the insured lives, the lower the rate of return on the related life settlement contract will be.

Inaccurate forecasting of an insured's life expectancy could result from, among other things, advances in medical treatment; inaccurate diagnosis or prognosis; the insured's improved health; and/or fraud or misrepresentation by the insured. If an insured outlives his or her predicted life expectancy, the amount and duration of ongoing premiums may be higher than initially expected, and premiums may also increase over time. Life settlement contracts also carry a number of other risks, including the risk of an insurance carrier's insolvency; liquidity risk; the risk of privacy and other laws limiting available information about the insured; the risk that an insurance policy is deemed unenforceable or is otherwise rescinded or cancelled; and the risk of changes in law or regulation that could restrict or otherwise encumber the transfer of life insurance policies in life settlement contracts.

#### Additional Risks Related to the Operation of the Company Generally
***The Board or a committee of the Board may resolve potential conflicts of interest between the Company and PIMCO, the Operating Manager and any of their respective affiliates. Under the LLC Agreement, it will be difficult for Shareholders to successfully challenge a resolution of a conflict of interest.***

Whenever a potential conflict of interest arises among PIMCO, the Operating Manager or any of their respective affiliates, on the one hand, and the Company generally, a Series, any of the Shareholders or any of the Members, on the other hand, which is not already pre-approved in the LLC Agreement, the Board (or a committee of the Board consisting of independent directors, which is the Audit Committee) or the Operating Manager or affiliates of the Operating Manager may resolve such conflict of interest. If the Board or the Operating Manager determines that its resolution of the conflict of interest is on terms no less favorable to the Company generally or a Series, as applicable, than those generally being provided to or available from unrelated third parties or is fair and reasonable to the Company generally or a Series, as applicable, taking into account other transactions that may be particularly

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favorable or advantageous to the Company generally or a Series, as applicable, then such determination shall not constitute a breach of the LLC Agreement at law or in equity. This is different from the situation with a typical Delaware corporation, where a conflict resolution by an interested party would be presumed to be unfair and the interested party would have the burden of demonstrating that the resolution was fair.

Also, if the Board obtains the approval of a committee of the Company's independent directors (including the Audit Committee), the resolution will be permitted and deemed to be approved by all Shareholders and Members of the Company and shall not constitute a breach of the LLC Agreement, any agreement contemplated therein, or any duty otherwise existing under the LLC Agreement, at law or in equity. This is different from the situation with a typical Delaware corporation, where a conflict resolution by a committee consisting solely of independent directors may, in certain circumstances, merely shift the burden of demonstrating unfairness to the plaintiff. If Shareholders purchase, receive or otherwise hold Shares, they will be treated as having consented to the provisions set forth in the LLC Agreement, including provisions regarding conflicts of interest situations that, in the absence of such provisions, might be considered a breach of fiduciary or other duties under applicable state law. As a result, Shareholders will, as a practical matter, not be able to successfully challenge an informed decision by a committee of the Company's independent directors (including the Audit Committee).

Any claims, suits, actions or proceedings concerning the matters described above or any other matter arising out of or relating in any way to the LLC Agreement may only be brought in the Court of Chancery of the State of Delaware or, if such court does not have subject matter jurisdiction thereof, any other court in the State of Delaware with subject matter jurisdiction or in the United States District Court for the District of Delaware.

***The LLC Agreement eliminates certain duties (including fiduciary duties) owed by the Board or other parties to the Company, the Members and the Shareholders. The Board, the Members, the Operating Manager, the Company's officers and their respective affiliates and certain Service Providers are entitled to exculpation and indemnification resulting in limited right of action for Shareholders.***

The LLC Agreement contains provisions that, subject to applicable law, reduce, modify, eliminate or replace the fiduciary duties that an Indemnified Party would otherwise owe to the Company, the Series, the Members and the Shareholders. For example, the LLC Agreement provides that whenever the Operating Manager or the Board (or any committee thereof) makes a determination or takes or declines to take any other action on behalf of the Company, or any affiliate of the Operating Manager causes the Operating Manager to do so, whether under the LLC Agreement or any other agreement, then, unless another express lesser standard is provided for in the LLC Agreement, the Operating Manager, the Board or such committee or such affiliates causing the Operating Manager to do so, shall make such determination or take or decline to take such other action in good faith and shall not be subject to any other or different duties or standards (including fiduciary duties or standards) imposed by the LLC Agreement any other agreement contemplated thereby or under any other law, rule or regulation or at equity. A determination or other action or inaction will conclusively be deemed to be in "good faith" for all purposes of the LLC Agreement if the person or persons making such determination or taking or declining to take such other action reasonably believes that the determination or other action or inaction is in, or not adverse to, the best interests of the Company or the applicable Series. In addition, the LLC Agreement provides that, subject to the above, when the Operating Manager or its directors, employees or affiliates makes a determination or takes or declines to take any other action, or any of its affiliates causes it to do so, in its individual capacity as opposed to in its capacity as Operating Manager, whether under the LLC Agreement or any other agreement contemplated thereby or otherwise, then the Operating Manager or its directors, officers or affiliates, or such affiliates causing it to do so, are entitled, to the fullest extent permitted by law, to make such determination or to take or decline to take such other action free of any duty or obligation whatsoever, other than those described in the LLC Agreement, to the Company, the Series, any Members, any Shareholder or any other person bound by the LLC Agreement, and the Operating Manager and its directors, officers and affiliates, or such affiliates causing it to do so, shall not, to the fullest extent permitted by law, be required to act pursuant to any other standard imposed by any other agreement contemplated under the LLC Agreement or under any other law, rule or regulation or at equity, and the person or persons making such determination or taking or declining to take such other action shall be permitted to do so in their sole and absolute discretion.

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The LLC Agreement also permits Indemnified Parties to engage in other business or activities, including those that might compete directly with the Company. The LLC Agreement provides that, notwithstanding any other provision thereof or any duty that would otherwise exist at law or in equity, each of the Indemnified Parties may engage in or possess an interest in any other business or venture of any kind, independently or with others, on its own behalf or on behalf of other entities with which any of the Indemnified Parties is affiliated or otherwise, and each of the Indemnified Parties may engage in any such activities, whether or not competitive with the Company, the Series, any affiliate of the Company or any affiliate of a Series, without any obligation to offer any interest in such activities to the Company, the Series, an affiliate of the Company, an affiliate of the Series or to any Member or Shareholder, and the pursuit of such activities, even if competitive with the business of the Company, an affiliate of the Company, the Series or an affiliate of the Series shall not be deemed wrongful or improper or the breach of the LLC Agreement or of any duty otherwise existing hereunder, at law, in equity or otherwise.

These contractual standards replace the fiduciary duties to which such persons would otherwise be held under common law.

The above modifications and replacements of fiduciary duties are expressly permitted by Delaware law. Hence, the Company and holders of the Shares will only have recourse and be able to seek remedies against the Indemnified Parties if the Indemnified Parties breach their obligations under the LLC Agreement or any implied contractual covenant of good faith and fair dealing owed to the Company, the Members or the Shareholders. Unless an Indemnified Party breaches their obligations pursuant to the LLC Agreement or any implied contractual covenant of good faith and fair dealing owed to the Company, the Members or the Shareholders, the Company and holders of the Shares will not have any recourse against such any Indemnified Party even if such Indemnified Party were to act in a manner that was inconsistent with traditional fiduciary duties.

Under the LLC Agreement, each Indemnified Party (i) will not be liable to the Company, any Series, any Member, any Shareholder or any other person bound by the LLC Agreement for (A) any losses due to any act or omission by any Indemnified Party in connection with the conduct of the business of the Company or the Series unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in question, such act or omission constitutes a Triggering Event (as defined below) by such Indemnified Party, (B) any losses due to any action or omission by any other person or entity, (C) any losses due to any mistake, action, inaction, negligence, dishonesty, actual fraud or bad faith of any broker, placement agent or other agent as provided in the LLC Agreement or (D) any change in U.S. federal, state or local or non-U.S. income tax laws, or in interpretations thereof, as they apply to the Company, the Series, the Members or the Shareholders, whether the change occurs through legislative, judicial or administrative action, and (ii) will be indemnified by the Company or the applicable Series from and against any and all claims, liabilities, damages, losses, costs and expenses of any kind, including legal fees and amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and expenses of investigating or defending against any claim or alleged claim, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnified Party and arise out of or in connection with the business of the Company, the business of a Series or the performance by the Indemnified Party of any of its responsibilities under the LLC Agreement, in each case unless such claims, liabilities, damages, losses, costs or expenses result from an Indemnified Party's act or omission constituting a Triggering Event; provided, however, that such claims, liabilities, damages, losses costs or expenses did not arise solely out of a dispute between or among the officers, directors, employees or partners of PIMCO or its affiliates. "Triggering Event" means an act or omission that constitutes actual fraud, willful misconduct, gross negligence, bad faith, a willful material and adverse breach of the LLC Agreement or applicable law.

Each Indemnified Party may be entitled to receive advances for any expenses (including legal fees and expenses) incurred by such Indemnified Party in appearing at, participating in or defending any claim, demand, action, suit or proceeding that may be subject to a right of indemnification. For example, in their capacity as directors (or in a similar capacity) of the Portfolio Assets or other entities which the Company acquires, the applicable Indemnified Party may be subject to derivative or other similar claims brought by shareholders of, or other investors in, such entities. Any Indemnified Party may seek indemnification or advancement from the Company (which indemnification or advancement will be considered an Operating Expense of, and be borne by, the applicable Series) prior to or in addition to seeking to cause such amounts to be borne by any other indemnitor (including any insurance maintained by PIMCO, the Operating Manager, the Company or the applicable asset), regardless of the ultimate allocation of the corresponding liabilities. For the avoidance of doubt, the unavailability of exculpation or indemnification under the LLC Agreement will not preclude any Indemnified Party from recovering under any insurance policy the cost of which is borne by the Company and/or PIMCO or its affiliates.

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The expenses (including legal fees and expenses) (whether or not advanced) and other liabilities resulting from the applicable Series' indemnification obligations are generally Operating Expenses and will be paid by or otherwise satisfied out of the assets of the applicable Series. The application of the foregoing standards may result in Shareholders having a more limited right of action in certain cases than they would have in the absence of such standards. To the fullest extent permitted by applicable law, except in the case of a Triggering Event, in the exercise of its authority pursuant to the LLC Agreement, the Operating Manager is not required or expected to disregard the interests of other PIMCO Clients and other PIMCO stakeholders (including PIMCO, its subsidiaries and their owners) if such interests are in conflict with those of the Company (although the Operating Manager is not authorized to disregard the interests of the Company). Further, members of the Board and each committee thereof are held to a duty of good faith and generally will be considered to have acted in good faith if they reasonably believe that a decision is in the best interests of the Company. As a result of these considerations, even though such provisions in the LLC Agreement do not act as a waiver on the part of any Shareholder of any of its rights under applicable U.S. securities laws or other laws the applicability of which is not permitted to be waived, the Company may bear significant financial losses even where such losses were caused by the negligence (even if heightened) of such Indemnified Parties. Such financial losses may have an adverse effect on the returns to the Shareholders.

***The LLC Agreement includes a jury trial waiver that could limit the ability of Shareholders of the Company to bring or demand a jury trial in any claim or cause of action arising out of or relating to the LLC Agreement or the business or affairs of the Company.***

The LLC Agreement contains a provision pursuant to which Shareholders waive and release their respective rights to a trial by jury in any action or proceeding arising out of or relating to the LLC Agreement, or the transactions contemplated thereby. This jury trial waiver does not apply to any claim or cause of action arising out of or relating to the U.S. federal securities laws. Any person who becomes a Shareholder of the Company as a result of a transfer or assignment of Shares, including any purchasers in a secondary transaction, would become subject to the terms of the LLC Agreement, including the waiver of jury trial provisions.

If the Company opposed a jury trial demand based on the jury trial waiver, the appropriate court would determine whether the waiver was enforceable based on the facts and circumstances of that case in accordance with the applicable state and federal law, including in respect of U.S. federal securities laws claims.

This waiver of jury trial provision may limit the ability of a Shareholder of the Company to bring or demand a jury trial in any claim or cause of action arising out of or relating to the LLC Agreement or the business or affairs of the Company, which may discourage lawsuits with respect to such claims. Alternatively, if a court were to find the waiver of jury trial provision contained in the LLC Agreement to be inapplicable or unenforceable in an action, the Company may incur additional costs associated with resolving such action, which could harm its business, operating results and financial condition.

***The LLC Agreement designates the Court of Chancery of the State of Delaware or, if such court lacks jurisdiction, the state courts in the State of Delaware or the United States District Court for the District of Delaware, and any appellate court thereof, as applicable, as the sole and exclusive forums for certain types of actions and proceedings that may be initiated by Shareholders, which could limit the Company's Shareholders' ability to obtain a favorable judicial forum for disputes with the Company or its directors, members, managers, officers or other employees or their affiliates.***

As permitted by the LLC Act, the LLC Agreement provides that, subject to certain exceptions, the Court of Chancery of the State of Delaware is the exclusive forum for any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, the LLC Agreement or the transactions contemplated thereby, including any claim or cause of action (whether in contract, tort, statute, common law or otherwise) that may be based upon, arise out of or relate to the negotiation, execution or performance of the LLC Agreement including any claim (A) related to a representation or warranty made in connection with the LLC Agreement, (B) brought on behalf of the Company or a Series, (C) asserting a breach of a duty, owed by any current or former Director, officer, employee, Operating Manager, Member or Shareholder of the Company or a Series, (D) arising pursuant to any provision of the LLC Act or the LLC Agreement or (E) governed by the internal affairs doctrine or, if such court lacks jurisdiction over the subject matter of such proceeding or if such jurisdiction is not available, the other courts of the State of Delaware or the United States District Court for the State of Delaware, and any appellate

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To prevent the Company from having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, the LLC Agreement provides that, unless the Company consents in writing to the selection of an alternative forum, the federal district courts of the United States shall be the exclusive forum for the resolution of any complaint asserting a cause of action arising under the Securities Act. This provision may have the effect of increasing Shareholders' difficulty in bringing claims against the Company or its directors, members, managers, officers or employees or their affiliates, potentially increasing the costs associated with bringing such claims and discouraging such claims. Any such provision in the Company's LLC Agreement remains subject to any related substantive requirements under the Securities Act.

In connection with the submission to such courts in an appropriate action or proceeding, the LLC Agreement provides that each Shareholder waives any objection to venue in such courts and defense of inconvenient forum to the maintenance of such action or proceeding in such courts, in each case, to the fullest extent permitted by applicable law. Shareholders will not be deemed to have waived compliance with the federal securities laws and the rules and regulations thereunder as a result of the forum selection provisions in the LLC Agreement. Furthermore, the validity of the Company's forum selection provision could be challenged and a court could rule that such provision is inapplicable or unenforceable. If a court were to find the Company's forum selection provision inapplicable to, or unenforceable in respect of, one or more of the specified types of actions or proceedings, the Company may incur additional costs associated with resolving such matters in other jurisdictions and the Company may not obtain the benefits of limiting jurisdiction to the courts selected.

Any person or entity purchasing or otherwise acquiring any interest in Shares of the Company will be deemed to have notice of and consented to the forum provisions in the LLC Agreement. Moreover, this choice of forum provision may limit a Shareholder's ability to bring a claim in a judicial forum that the Shareholder finds favorable for disputes with the Company or any Series or any of the Company's or any Series' directors, officers, members, managers, other employees or Shareholders or their affiliates, which may discourage lawsuits with respect to such claims.

***The Company's business is subject to heightened risk because of its plans to acquire Portfolio Assets outside of the United States, which results in numerous risks related to foreign acquisition, including additional economic and political risk.***

The Company may acquire companies domiciled in or with operations or assets in countries outside of the United States, some of which may prove to be unstable. Additionally, there is often a high degree of government regulation in non-U.S. economies, including in the securities markets. Action by such governments may directly affect foreign acquisition of securities in those countries and may also have a significant indirect effect on the market prices of securities and of the payment of dividends and interest.

Acquisitions of non-U.S. assets involve certain risks not typically associated with acquisitions in the United States, including risks relating to: (i) currency exchange matters, such as fluctuations in the rate of exchange between the U.S. dollar and the various non-U.S. currencies in which the Company's non-U.S. assets may be denominated and costs associated with the conversion of deployed principal and income from one currency into another (see also "—*The Company faces heightened risks with non-U.S. currencies because the value of the currency with respect to the U.S. dollar may change*" below); (ii) the imposition or modification of foreign exchange controls; (iii) the unpredictability of international trade patterns; (iv) differences between U.S. and non-U.S. markets, including potential price volatility in, and relative illiquidity of, some non-U.S. markets; (v) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and less government supervision and

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regulation across some countries; (vi) certain economic, social and political risks, including restrictions on non-U.S. acquisition and repatriation of capital, the risks of economic, social and political instability (including the risk of war, terrorism, social unrest or conflicts) and the possibility of nationalization, confiscatory taxation or expropriation of assets; (vii) the possible imposition on Shareholders of non-U.S. taxes on income and gains recognized with respect to such non-U.S. assets (possibly directly) and the possible imposition of withholding taxes or branch taxes on earnings of the Company from acquisitions in such jurisdictions; (viii) different insurance or bankruptcy laws and customs; (ix) high transaction costs and difficulty in enforcing contractual obligations; (x) less developed corporate laws and limited information regarding, among other things, fiduciary duties and the protection of investors; (xi) higher dependence on exports and the corresponding importance of international trade; (xii) greater risk of inflation; (xiii) inability to exchange local currencies for U.S. dollars; (xiv) increased likelihood of governmental involvement in and control over the economy; (xv) governmental decisions to cease support of economic reform programs or to impose centrally planned economies; (xvi) less developed compliance culture; (xvii) risks associated with differing cultural expectations and norms regarding business practices; (xviii) longer settlement periods for transactions and less reliable clearance and custody arrangements; (xix) less developed, reliable or independent judiciary systems for the enforcement of contracts or claims, including less developed bankruptcy laws and processes; (xx) greater regulatory uncertainty; (xxi) maintenance of the Company's assets with non-U.S. brokers and securities depositories; (xxii) threats or incidents of corruption or fraud; (xxiii) less developed securities markets, which could result in potential price volatility and relative illiquidity; (xxiv) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and less government supervision and regulation, which could result in lower quality information being available and less developed corporate laws regarding fiduciary duties and the protection of investors; (xxv) certain economic and political risks, including potential economic, political or social instability, exchange control regulations, restrictions on foreign acquisition and repatriation of capital (possibly requiring government approval), expropriation or confiscatory taxation and higher rates of inflation and reliance on a more limited number of commodity inputs, Service Providers and/or distribution mechanisms; and (xxvi) fewer or less attractive financing and structuring alternatives and exit strategies.

In addition, these countries may have a short history as market economies, and acquisitions of assets or companies in such countries may entail a higher risk than with companies in North America or Europe. The Operating Manager will analyze risks in the applicable non-U.S. countries before making such acquisitions, but no assurance can be given that a change in political or economic climate, a lack of reliable and less detailed information than information typically available from acquisitions in the U.S. or particular legal or regulatory risks might not adversely affect an acquisition by the Company.

Repatriation of income, assets and the proceeds of sales by companies foreign to such markets, such as the Company, may require governmental registration and/or approval in some emerging markets. The Company could be adversely affected by delays in or a refusal to grant any required governmental registration or approval for such repatriation or by withholding taxes imposed by emerging market countries on interest or dividends. In emerging markets, there is often less government supervision and regulation of business and industry practices, stock exchanges, over-the-counter markets, brokers, dealers, counterparties and issuers than in other more established markets. Any regulatory supervision that is in place may be subject to manipulation or control. Some emerging market countries do not have mature legal systems comparable to those of more developed countries. Moreover, the process of legal and regulatory reform may not be proceeding at the same pace as market developments, which could result in acquisition risk. Legislation to safeguard the rights of private ownership may not yet be in place in certain areas, and there may be the risk of conflict among local, regional and national requirements or authorities. In certain cases, the laws and regulations governing investments in securities may not exist or may be subject to inconsistent or arbitrary application or interpretation. Both the independence of judicial systems and their immunity from economic, political or nationalistic influences remain largely untested in many countries. The Company may also encounter difficulties in pursuing legal remedies or in obtaining and enforcing judgments in non-U.S. courts.

Future political and economic conditions in any of those countries may result in its government adopting different policies with respect to foreign acquisition. Any such changes in policy may affect ownership of assets, taxation, rates of exchange, environmental protection, repatriation of income and return of capital, with potentially adverse effects on the Company's assets. Future actions of any relevant governments could have a significant effect on the relevant country's economy, which could adversely affect private sector companies, market conditions and prices and yields of the Company's assets. In recent years many countries have witnessed various terrorist attacks, civil unrest and other acts of violence, and it is possible that in the future such events as well as other adverse social, economic or political events in the Company's target markets may adversely affect the value and prospects of the Company's assets.

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Changing political environments, regulatory restrictions and changes in government institutions and policies outside of the United States could adversely affect private acquisitions. Civil unrest, ethnic conflict or regional hostilities may contribute to instability in some countries outside of the United States. Such instability may impede business activity and adversely affect the environment for foreign acquisitions. The Company does not intend to obtain political risk insurance. Actions in the future of one or more non-U.S. governments could have a significant effect on the various economies, which could affect market conditions, prices and yields of securities in the Company's holdings. Political and economic instability in any of the countries outside the United States in which the Company operates could adversely affect the Company's assets.

The above factors will affect the evaluation of potential acquisitions and the Company's ability to perform due diligence.

***The Company's business may be affected by acquisitions and dispositions through partnerships, joint ventures and special purpose vehicles. Risks could include the possibility that the Company will not be able to implement acquisition decisions or exit strategies because of limitations on the Company's control of the Asset or that its partner or co-venturer may experience economic difficulties or have divergent goals.***

The Company may acquire as a partner or a co-venturer with an unaffiliated third party. Joint Venture acquisitions may, under certain circumstances, involve risks not otherwise present, including the possibility that the Company will not be able to implement acquisition decisions or exit strategies because of limitations on the Company's control of the Portfolio Asset and its general business discretion under the applicable agreements with a partner or co-venturer, or that a partner or co-venturer may become bankrupt, or may at any time have economic or business interests or goals that are inconsistent with those of the Company, may fail to fund its share of required capital contributions or otherwise default on its obligations, may make business decisions with which the Operating Manager does not agree or may block or delay necessary decisions. Such a partner or co-venturer does not have fiduciary duties to the Company and may also be in a position to take action contrary to the Company's objectives, including forcing the sale of a Portfolio Asset prior to the end of the Company's optimal holding period. Such acquisitions may also have the potential risk of an impasse on decisions if neither partner nor co-venturer has full control over the partnership or Joint Venture. The Company will, however, seek to maintain sufficient rights with respect to such partnerships, Joint Ventures or Programmatic Acquisitions to permit the Company's objectives to be achieved.

Disputes between the Company and a partner or co-venturer may result in litigation or arbitration that would increase the Company's expenses and prevent the Company's management and the Operating Manager from focusing their time and effort on the Company's businesses and assets. Consequently, actions by, or disputes with, a partner or co-venturer might result in additional risks, including liability for the actions of a third-party partner or co-venturer and the inability to enforce fully, all rights one partner or co-venturer may have against the other. In the event of litigation, the Company could be found liable to its co-venturer or partner for a range of damages available under applicable law under theories arising in contract, tort or otherwise, including consequential damages well in excess of amounts originally at stake. Additionally, the Company and a co-venturer may provide joint guarantees or indemnities (or the Company may seek a back-to-back guarantee or indemnity from a co-venturer) in connection with a Joint Venture and, to the extent the co-venturer does not satisfy all or a portion of such obligations (or does not assume any such obligations), the Company may be required to satisfy the entirety of such obligation or such shortfall.

The Operating Manager may not have the opportunity to diligence the individual opportunities in which the Company participates pursuant to a Joint Venture and certain service contracts. Instead, the Operating Manager will need to depend on its arrangement with, and diligence of, the applicable sourcing or Joint Venture partner. The incentives of such a sourcing or Joint Venture partner, however, may not be aligned with those of the Company, and such a partner will not owe any fiduciary or other similar duties to the Company. Certain Joint Venture or sourcing arrangements may entail the Operating Manager's binding commitment of a minimum amount to such an arrangement. In connection with a sourcing or Joint Venture arrangement, the Company may be obligated to bear retainers, closing, performance or other fees paid to sourcing, operating and Joint Venture partners, unless the Company is reimbursed for such fees. Sourcing, operating or Joint Venture partners may receive compensation calculated on investment performance, which may incentivize the making of higher risk investments, and may incur substantial expenses that

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are borne by the Company. In addition, the Company or an Asset may compensate sourcing, operating and/or Joint Venture partners for certain services, even where the Operating Manager has the capacity to provide and/or has historically provided the same services to the Company or other PIMCO Clients without charge. In connection with certain acquisitions, sourcing, operating and/or Joint Venture partners may receive origination fees, commitment fees, ticking fees and breakup fees, upfront fees, amendment fees, prepayment premiums and other types of third-party fees not shared with the Company. The Operating Manager may reduce or waive management fees with respect to sourcing, operating and/or Joint Venture partners in connection with any investment by such partners in the Company.

***The Company faces increased risk in acquiring portfolios of Asset-Backed Instruments, because it may be required to bid on Asset-Backed Instruments in a very short time frame and as a result may not be able to perform normal due diligence on such acquisitions. Additionally, the uncertainty of financial projections could have a material adverse impact on the ability of an Asset-Backed Instrument to realize projected values.***

The Company, through its subsidiaries, may seek to purchase entire portfolios or substantial portions of portfolios from market participants in need of liquidity or suffering from adverse valuations. The Operating Manager may designate, in its discretion, whether any acquisition by the Company of multiple securities of one or more issuers or a series or pool of securities, instruments, interests, obligations or assets will constitute a single asset or several assets of the Company (including for purposes of the Company's diversification limits and distribution waterfall). The Company may be required to bid on such portfolios in a very short time frame and may not be able to perform normal due diligence on the portfolio. Such a portfolio may contain instruments or complex arrangements of multiple instruments that are difficult to understand or evaluate. Such a portfolio may suffer further deterioration after purchase by the Company before it is possible to ameliorate such risk. As a consequence, there is substantial risk that the Operating Manager will not be able to adequately evaluate particular risks or that market movements or other adverse developments will cause the Company to incur substantial losses on such transactions.

While bidding on and operating Asset-Backed Instruments, the Operating Manager will generally design and, after an acquisition, establish the capital structure of Asset-Backed Instruments on the basis of financial projections for such Asset-Backed Instruments. Projections are forward-looking statements and are based upon certain assumptions. Projected operating results will normally be based primarily on management judgments. In all cases, projections are only estimates of future results that are based upon assumptions that the Operating Manager believes are reasonable at the time that the projections are developed. Projections are subject to a wide range of risks and uncertainties, however, and there can be no assurance that the actual results may not differ materially from those expressed or implied by such projections. Moreover, the inaccuracy of certain assumptions, the failure to satisfy certain financial requirements and the occurrence of other unforeseen events could impair the ability of an Asset-Backed Instrument to realize projected values. General economic conditions, which are not predictable, can also have a material adverse impact on the reliability of such projections.

#### The Company's business may be affected by purchasing, holding or disposing of special purpose vehicles or subsidiaries.
The Company purchased and holds, and is expected to continue to purchase or hold through one or more special purpose vehicles or other subsidiaries a group of assets (regardless of whether such assets are related, purchased from a single seller or neither) in a single issuer or a group of issuers. If the Company purchases or holds through a special purpose vehicle or other subsidiary a group of assets (regardless of whether such assets are related, purchased from a single seller or neither) in a single issuer or a group of issuers, the Board or the Operating Manager, pursuant to delegation by the Board, has the authority, in its discretion, to designate any such special purpose vehicle or subsidiary as an Asset-Backed Instrument at any time, including before or after the creation or utilization thereof, and the Operating Manager will, in its discretion, define which entity or entities constitutes the Asset-Backed Instrument. Any such special purpose vehicle or other subsidiary (and not, for the avoidance of doubt, any asset made or held through such entity) will, unless otherwise determined by the Operating Manager in its discretion, be treated as an "Asset-Backed Instrument" for all purposes under the LLC Agreement, including that any such entity will be authorized to freely reinvest proceeds in, substitute collateral for, provide one or more guarantees, letters of credit, equity commitment letters or similar credit support (including on a joint and several or cross-collateralized basis or otherwise as described herein or in the LLC Agreement) for, and otherwise engage in financial transactions with, any of the entities comprising the enterprise conducted through such special purpose vehicle or other subsidiary and otherwise optimize its portfolio. In connection therewith, any such special purpose vehicle or other subsidiary may

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The Operating Manager or an affiliate thereof could serve as the controlling person of a special purpose vehicle formed for the purpose of holding and subsequently liquidating assets of the Company. There can be no assurance that the Operating Manager will be able to sell or otherwise dispose of all or any portion of the assets held by any such special purpose vehicle in a timely manner, if at all, or at prices that reflect the value of such assets.

#### Acquisitions through offshore holding companies could be subject to registration.
The Company is permitted to acquire Asset-Backed Instruments issued in a particular country indirectly through holding companies organized outside of such country. Government regulation in such country could, however, restrict the ability of such Asset-Backed Instruments to pay interest or dividends or make other payments to a "foreign" holding company. Additionally, any transfer of funds from a "foreign" holding company to its subsidiary, either as a shareholder loan or as an increase in equity capital, could be subject to taxation or registration with or approval by government authorities in such country. Such restrictions could materially and adversely limit the ability of any "foreign" holding company in which the Company holds a position to grow or make acquisitions that could be beneficial to its businesses, pay dividends or otherwise fund and conduct its business.

***The Company is subject to heightened risk of conflicts of interests due to PIMCO or its affiliate's ability to provide debt financing to Shareholders while acting as Operating Manager.***

From time to time, prospective and existing Shareholders may inform the Operating Manager that they intend or would like to finance or lever their investment in the Company using both equity and debt financing, with all or a portion of the debt financing being provided by a lender that has, among other things, such Shareholders' Shares in the Company as collateral for such debt financing. It is possible that the lender could be PIMCO, its affiliates, PIMCO Clients or one or more of their respective Portfolio Assets. In this instance, there could be conflicts of interest with respect to the provision of such debt financing by any such person to such Shareholder or a PIMCO-managed vehicles through which such Shareholders invest in the Company. Such lenders would earn and/or be reimbursed for customary fees, costs and expenses, and none of the foregoing amounts would offset Management Fees payable by the Company. It is also possible that such lending activities could have adverse effects on the Company and the manner in which it is managed, given that an affiliate of PIMCO could be the Operating Manager and the lender to the Shareholder. None of the foregoing transactions will be subject to the approval of or be subject to a notification requirement in favor of the Board or any other Shareholder.

***Due to conflicts between PIMCO or its affiliates and the Company regarding allocation of acquisition opportunities, there is no guarantee that the Company will participate in specific PIMCO opportunities, which may harm the Company's performance.***

PIMCO provides investment management services to other PIMCO Clients, and PIMCO and/or such PIMCO Clients will have one or more strategies that overlap or conflict with those of the Company. The employment by PIMCO of conflicting strategies for other PIMCO Clients could adversely affect the prices and availability of the securities and other assets which the Company acquires.

As a general matter, the Company is permitted to participate in acquisition opportunities alongside other PIMCO Clients and in certain instances alongside PIMCO affiliates (such as Syndication Entities (as defined below)), subject to and in accordance with PIMCO's allocation policies and procedures, in effect from time to time. If participation in specific acquisition opportunities is appropriate for both the Company and one or more other PIMCO

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Clients (or PIMCO itself, such as a PIMCO SPAC), participation in such opportunities will be allocated pursuant to PIMCO's allocation policies and procedures. There can be no assurance, however, that the application of such policies will result in the allocation of a specific opportunity to the Company or that the Company will participate in all opportunities falling within its objective. Such considerations can result in allocations of certain opportunities among the Company and other PIMCO Clients on other than a *pari passu* basis and, in some cases, to a newly formed PIMCO Client (or a PIMCO SPAC) established for a particular acquisition. In the past, the application of such policies has resulted in the allocation by PIMCO of certain acquisition opportunities relating to the alternative investment management business to (i) PIMCO (or a PIMCO SPAC) rather than to PIMCO Clients or (ii) a newly formed PIMCO Client created for a particular acquisition opportunity, and PIMCO expects to allocate such opportunities in a similar manner in the future. As PIMCO continues to seek additional sourcing channels for acquisition opportunities for the Company and other PIMCO Clients, as well as PIMCO, it is also anticipated that there will be opportunities for acquisitions in various companies or businesses, including among others financial services companies and investment advisory/management businesses, that would be allocated to PIMCO (and not PIMCO Clients, including the Company) as part of developing investment sourcing opportunities for the platform, including as part of such underlying investment, a commitment to fund or otherwise contemporaneously participate in such sourcing opportunities by PIMCO Clients, including the Company (such investments, "Platform Investments"). Any fees, costs and expenses arising from or in connection with the discovery, evaluation, investigation, development and consummation of potential Platform Investments or Joint Venture (including Joint Ventures formed in connection with Platform Investments) will be considered Operating Expenses and will be borne by the Company in accordance with PIMCO's expense allocation procedures as further discussed in "—*Potential Conflicts of Interest—Certain Potential Conflicts Relating to Expenses*." In addition, for any such Platform Investments or Joint Ventures, to the extent the Company participates in one or more acquisition opportunities sourced by such platform (irrespective of whether any such acquisition is consummated), any fees earned by PIMCO in respect of such Platform Investment or Joint Venture, including management fees or other incentive compensation arrangements, will not constitute Special Fees and will not be applied to reduce Management Fees; instead such payments will be treated as Other Fees. None of the Shareholders will have an interest in investments made by such other PIMCO Clients solely by reason of their investment in the Company.

To the extent that the participation of the Company or any Shareholder in an acquisition opportunity that is otherwise suitable for the Company and other PIMCO Clients would cause the acquisition to become subject to requirements and restrictions of a law, rule or regulation that could have an adverse impact on any participating Shareholder in such opportunity, PIMCO may determine to modify some or all of the terms of such opportunity or to exclude the Company or any such Shareholder in the Company from participating in such opportunity. See "—*Potential Conflicts of Interest—Other Activities of the Operating Manager*" below.

***The Company faces heightened risk of conflicts of interest with the boards of directors of Asset-Backed Instruments because it expects the Company or its affiliates' officers and employees to serve as members of such boards.***

Certain of the Company's and its affiliates' officers, employees, consultants or operating partners may serve as directors of certain Asset-Backed Instruments. In addition to any duties such persons may owe to the Company, as directors of Asset-Backed Instruments, these individuals will also owe duties to the shareholders of the Asset-Backed Instruments and persons other than the Company (which, in each case, could include other PIMCO Clients who are themselves shareholders of such Asset). In general, such positions are often important to the Company's strategy and may enhance the ability of the Operating Manager to manage the Company's assets. However, such positions may have the effect of impairing the ability of the Company to sell the related assets when, and upon the terms, the Operating Manager may otherwise desire. In addition, such positions may place the Company's officers or such other persons in a position where they must make a decision that is either not in the best interests of the Company or not in the best interests of the shareholders of the Asset-Backed Instrument. Should a Company officer or other representative make a decision that is not in the best interests of the shareholders of an Asset, such decision may subject the Operating Manager and the Company to claims they would not otherwise be subject to as a shareholder, including claims of breach of the duty of loyalty, securities claims and other director-related claims. In general, the Company will indemnify the Operating Manager and other Indemnified Parties from such claims.

In addition, the interests of PIMCO, its affiliates and other PIMCO Clients that have invested in the Asset-Backed Instrument with respect to the management, investment decisions or operations of an Asset-Backed Instrument may at times be in direct conflict with those of the Company. As a result, in such circumstances, PIMCO and its affiliates will face actual or apparent conflicts of interest, in particular in exercising powers of control over, or making decisions with respect to, such Asset-Backed Instruments.

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***The Company faces heightened risks due to the incentives and discretion of the Operating Manager and affiliates to allocate fees or performance based compensation to Co-Investors.***

The Operating Manager, any PIMCO Clients, any PIMCO affiliates or any of their respective affiliates may (or may not) in their discretion, (i) charge or otherwise receive incentive allocation, management fees, performance fees, consulting fees, transaction fees and other fees and costs to any Co-Investors (including at lower rates than what is being charged to Shareholders) and may make an acquisition, or otherwise participate, in any vehicle formed to structure a Co-Investment and facilitate receipt of such performance fees, incentive allocation, management fees, consulting fees, transaction fees and other fees and costs or (ii) collect customary fees (including breakup fees) in connection with actual or contemplated acquisitions that are the subject of such Co-Investment arrangements. Any performance-based compensation (such as performance fees), management fees or other similar fees received from Co-Investors with respect to any Co-Investment may (or may not) differ from those charged to the Company. Furthermore, since the Operating Manager may receive performance-based compensation (such as performance fees), management fees or other similar fees under its agreement with such a Co-Investor, which may be more favorable than the fees paid by the Company, there may be an incentive for the Operating Manager to transfer interests in a Portfolio Asset to a Co-Investor in greater amounts and on terms, including price, that are less favorable to the Company than they would otherwise be. Additionally, in those circumstances where the applicable Co-Investors include one or more members of a Portfolio Asset's management group, the Co-Investors who are members of such management group may receive compensation relating to the acquisition of such Portfolio Asset, including incentive compensation arrangements. With respect to consummated Co-Investments, Co-Investors will typically bear their *pro rata* share of fees, costs and expenses related to the discovery, investigation, development, acquisition or consummation, ownership, maintenance, monitoring, hedging and disposition of their Co-Investments.

***The Company faces heightened risk from working with Affiliated Service Providers since key personnel will not devote their full time or attention to the Company and could leave the Affiliated Service Provider at any time.***

The Company and its Portfolio Assets will acquire or appoint from time to time Affiliated Service Providers to provide particular services to the Portfolio Assets and the Company as discussed in more detail below. The Company and any such Portfolio Assets depend upon the diligence, skill and business relationships of the Affiliated Service Providers. Key employees of an Affiliated Service Provider could depart at any time. The departure of one or more key employees or a significant number of the employees of an Affiliated Service Provider could therefore affect such Affiliated Service Provider's ability to provide services to the Company or its Portfolio Assets, which could have a material adverse effect on the Company's ability to achieve its objectives. Affiliated Service Providers will not provide services to the Company or its Portfolio Assets on an exclusive basis, and could prioritize servicing other PIMCO Clients, PIMCO or its affiliates or their respective portfolio investments over the Company or its Portfolio Assets.

Furthermore, although the PIMCO leadership team and other investment professionals intend to devote sufficient time to the Company so that it can carry out its proposed activities, all of the PIMCO leadership team members are also responsible for the broader PIMCO asset-based finance platform and, as a result, not all of their business time will be devoted to the Company as they will be responsible for the day-to-day activities and investments of certain PIMCO asset-based finance platform businesses (including, without limitation, asset-based funds, vehicles and/or accounts; which include specific time commitment requirements) as further described in "—*Potential Conflicts of Interest—Other Activities of the Operating Manager*" below. In addition, PIMCO may from time to time establish PIMCO vehicles that focus on investments that fall within and outside of the Company's strategy and objective and PIMCO investment professionals (including certain of the Company's team members) will spend time and attention on such PIMCO vehicles.

The historical performance of an Affiliated Service Provider is not indicative, or a guarantee, of its future performance and may vary as a result of an adverse development in the Affiliated Service Provider's business, an economic downturn or legal, tax, regulatory or other changes. Affiliated Service Providers may operate at a loss, may require substantial additional capital to support their operations or to maintain their competitive position, or may otherwise have a weak financial condition or experience financial distress, any of which may result in a loss to the Company and diminish the Company's ability to make other acquisitions. Any adverse development affecting an Affiliated Service Provider's financial condition may also result in an interruption of services to the Company, which could have a material adverse effect on the Company's ability to meet its objectives.

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***Due to the Company or its affiliates entering into exclusivity arrangements, the Company faces the risk of having to turn down opportunities it might otherwise be interested in.***

It is possible that, from time to time, the Company, PIMCO, other PIMCO Clients or any of their respective affiliates or Portfolio Assets, could enter into exclusivity, non-competition or other arrangements with one or more Joint Venture partners, operating partners or other third parties with respect to potential acquisitions in a particular geographic region or with respect to a specific industry or asset type pursuant to which the Company or PIMCO or any of their respective affiliates, could agree, among other things, not to make acquisitions in such region or with respect to such industry or asset type outside of its arrangement with such person. Similar issues could arise in connection with the disposition of an asset. Accordingly, there could be circumstances in which PIMCO or a PIMCO Client could source a potential acquisition opportunity or be presented with an opportunity by a third party, and, as a result of such arrangements with such person, the Company or its assets could be precluded from pursuing such acquisition opportunity.

Such acquisitions will involve risks in connection with such third-party involvement, including the possibility that a third party could have financial difficulties resulting in a negative impact on such acquisitions. Furthermore, a third-party co-investor, operating partner or Joint Venture partner advisor might have economic or business interests or goals that are inconsistent with those of the Company or could be in a position to take (or block) action in a manner contrary to the objectives of the Company. The Company might also in certain circumstances be liable for the actions of such third parties. While the Company can seek to obtain indemnities to mitigate such risk, such efforts might not be successful. In addition, acquiring alongside a third party may require that the Company participate through tax structures that are different than, and in some circumstances may be less advantageous for Shareholders of the Company than, if the acquisition was made exclusively by the Company (or the Company and other PIMCO Clients). Acquisitions made with such third parties in Joint Ventures or other entities could involve arrangements whereby the Company would bear a disproportionate share of the expenses of the Joint Venture and/or portfolio entity, as the case may be, including any overhead expenses, management fees or other fees payable to the Joint Venture partner (or the management team of the Joint Venture portfolio entity), employee compensation, diligence expenses or other related expenses in connection with backing the Joint Venture or the build out of the Joint Venture portfolio entity. Such expenses can be borne directly by the Company as Operating Expenses or indirectly as the Company bears the start-up and ongoing expenses of the newly formed Joint Venture portfolio entity.

The compensation paid to Joint Venture and operating partners, if any, could be comprised of various types of arrangements, including one or more of the following: (i) management or other fees, including, for example, origination fees and development fees payable to the Joint Venture partner (or the management team of the Joint Venture portfolio entity); (ii) performance fee distributions and/or other profit sharing arrangements payable to the Joint Venture partner (or the management team of the Joint Venture portfolio entity), including profits realized in connection with the disposition of a single asset, the whole Joint Venture portfolio entity or some combination thereof; and (iii) other types of fees, bonuses and compensation not otherwise specified above. None of the compensation or expenses described above, if any, will be offset against any Management Fees or Performance Fee distributions payable to the Operating Manager or PIMCO in respect of the Company. In addition, Joint Venture and operating partners (and/or their officers, directors, employees or other associated persons), if any, could be permitted to invest in the Company, other PIMCO Clients or specific transactions (including Portfolio Assets) on a no-fee/no-carry basis. Members of the management team for a Joint Venture portfolio entity could include consultants and/or former PIMCO employees.

In the event that the Company has a non-controlling interest in any such acquisition, there can be no assurance that minority rights will be available to it or that such rights will provide sufficient protection of the Company's interests. The Company's business strategies in certain assets could, but are not expected to, depend on its ability to enter into satisfactory relationships with Joint Venture or operating partners. There can be no assurance that PIMCO's future relationship with any such partner or operator would continue (whether on currently applicable terms or otherwise) with respect to the Company or that any relationship with other such persons would be able to be established in the future as desired with respect to any sector or geographic market and on terms favorable to the Company.

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The Company is subject to management risk because the Operating Manager manages its portfolio under the Board's supervision.

The Operating Manager seeks to apply acquisition and disposition techniques and risk analyses in evaluating and recommending acquisition and disposition opportunities for the Company to the Board and/or the Acquisition Committee, but there can be no guarantee that these will produce the desired results. In addition, as Shareholders may not participate in the management of the Company, only investors who are willing to entrust all aspects of the management of the Company to the Board, the Acquisition Committee and the Operating Manager should subscribe for Shares.

***The Company expects its acquisitions to include Asset-Backed Instruments in regulated industries that could negatively affect the Company. Acquisitions of Asset-Backed Instruments in regulated industries exposes the Company to a higher level of regulatory control than typically imposed on other businesses.***

In some instances, the making or acquisition of Asset-Backed Instruments involves an ongoing commitment to a municipal, state or federal government, quasi-government, industry, self-regulatory or other relevant regulatory authority, body or agency ("Regulatory Agencies"). These more highly regulated industries include among others, real estate, financial services (including banking, investing and mortgage servicing), transportation (*e.g.*, aviation), energy and power generation, civil engineering and urban development, construction and businesses that serve primarily customers that are governmental entities, including the defense industry. Certain Asset-Backed Instruments (*e.g.*, those involving hospitality, hotels and leisure) also can involve regulated activities (*e.g.*, gaming and liquor). The nature of these obligations exposes the owners of Asset-Backed Instruments to a higher level of regulatory control than typically imposed on other businesses, including rules regarding transfer of ownership. Regulatory Agencies may impose conditions on the construction, operations and activities of an Asset-Backed Instrument as a condition to granting their approval or to satisfy regulatory requirements. This may include requirements that such assets remain managed by the Company, the Operating Manager or their respective affiliates, which may limit the ability of the Asset-Backed Instruments to dispose of the assets at opportune times.

Regulatory Agencies may have considerable discretion to change or increase regulation of the operations of an Asset-Backed Instrument or to otherwise implement laws, regulations or policies affecting its operations (including, in each case, with retroactive effect), separate from any contractual rights that the Regulatory Agency counterparties may have. Accordingly, additional or unanticipated regulatory approvals, or reviews, including, without limitation, renewals, extensions, transfers, assignments, reissuances or similar actions, may be required to acquire Asset-Backed Instruments, and additional approvals, or reviews, may become applicable in the future due to, among other reasons, a change in applicable laws and regulations or a change in the relevant Asset-Backed Instrument's customer base. There can be no assurance that an Asset-Backed Instrument will be able to: (i) obtain all required regulatory approvals that they do not yet have or that they may require in the future; (ii) obtain any necessary modifications to existing regulatory approvals; or (iii) maintain required regulatory approvals. Licenses and regulatory approvals may be expensive or result in delays to transfer of development of Asset-Backed Instruments. Delay in obtaining or failure to obtain and maintain in full force and effect any regulatory approvals, or amendments thereto, or delay or failure to satisfy any regulatory conditions or other applicable requirements could prevent operation of a facility owned by an Asset-Backed Instrument, the completion of a previously announced acquisition or sale to a third party, or could prevent operation of a facility owned by an Asset-Backed Instrument, the completion of a previously announced acquisition or sale to a third party, or could otherwise result in additional costs to the Asset-Backed Instrument and the Company.

Since many Asset-Backed Instruments will provide basic, everyday services and face limited competition, Regulatory Agencies may be influenced by political considerations and may make decisions that adversely affect the Asset-Backed Instrument's business. Certain types of Asset-Backed Instruments are very much in the "public eye" and politically sensitive, and as a result the Company's activities, may attract an undesirable level of publicity. Additionally, pressure groups and lobbyists may induce Regulatory Agency action to the detriment of the Company as the owner of the relevant asset or business. There can be no assurance that the relevant government will not legislate, impose regulations or change applicable laws or act contrary to the law in a way that would materially and adversely affect the business of the Asset-Backed Instruments. The profitability of certain types of Asset-Backed Instruments may be materially dependent on government subsidies being maintained (for example, government programs encouraging the development of certain technologies such as solar and wind power generation). Reductions or eliminations of such subsidies may have a material adverse impact on the Asset-Backed Instruments and the Company.

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Where the Company or an Asset-Backed Instrument holds a concession or lease from a Regulatory Agency, such arrangements are subject to special risks as a result of the nature of the counterparty. The concession or lease may restrict the operation of the relevant asset or business in a way that maximizes cash flows and profitability. The lease or concession may also contain clauses more favorable to the Regulatory Agency counterparty than a typical commercial contract. In addition, there is the risk that the relevant Regulatory Agency will exercise sovereign rights and take actions contrary to the rights of the Company or an Asset-Backed Instrument under the relevant agreement. Poor performance and other events during construction or operating phases may lead to termination of the relevant concession or lease agreement, which may or may not provide for compensation to the relevant Asset-Backed Instrument. If it does, as the Asset-Backed Instrument would generally be deemed to have been "at fault," then often the amount of any related senior debt may not be paid out in full and compensation for lost equity returns may not be provided.

Certain Asset-Backed Instruments may require the use of public ways or may operate under easements. Regulatory Agencies may retain the right to restrict the use of such public ways or easements or require an Asset-Backed Instrument to remove, modify, replace or relocate facilities relating to Asset-Backed Instruments at its own expense. If a Regulatory Agency exercises these rights, an Asset-Backed Instrument could incur significant costs and their ability to provide services to their customers could be disrupted, which could adversely impact the performance of such assets.

Changes in applicable laws or regulations, or in the interpretations of these laws and regulations, could result in increased compliance costs or the need for additional capital expenditures and/or regulatory capital requirements in the case of banks or similarly regulated entities. If an Asset-Backed Instrument fails to comply with these requirements, it could also be subject to civil or criminal liability and the imposition of fines.

An Asset-Backed Instrument also could be negatively affected as a result of statutory or regulatory changes or judicial or administrative interpretations of existing laws and regulations that impose more comprehensive or stringent requirements on such company. Governments have considerable discretion in implementing regulations that could impact an Asset-Backed Instrument's business and governments may be influenced by political considerations and may make decisions that adversely affect an Asset-Backed Instrument's business. Additionally, certain Asset-Backed Instruments have unionized work forces or employees who are covered by a collective bargaining agreement, which could subject any such Asset-Backed Instrument's activities and labor relations matters to complex laws and regulations relating thereto.

Moreover, an Asset-Backed Instrument's operations and profitability could suffer if it experiences labor relations problems. Upon the expiration of any such Asset-Backed Instrument's collective bargaining agreements, it may be unable to negotiate new collective bargaining agreements on terms favorable to it, and its business operations at one or more of its facilities may be interrupted as a result of labor disputes or difficulties and delays in the process of renegotiating its collective bargaining agreements. A work stoppage at one or more of any such company's facilities could have a negative effect on its business, results of operations and financial condition. Additionally, any such problems may bring scrutiny and attention to the Company itself, which could adversely affect the Company's ability to implement its objectives.

An Asset-Backed Instrument's operations may rely on government licenses, concessions, leases or contracts that are generally very complex and may result in a dispute over interpretation or enforceability. Even though most permits and licenses are obtained prior to the commencement of full project operations, many of these licenses and permits have to be maintained over the project's life. If the Company or an Asset-Backed Instrument fails to comply with these regulations or contractual obligations, they could be subject to monetary penalties or may lose their right to operate the affected asset, or both.

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***The use of back leverage increases the risks associated with collateralized assets held through the same leverage facilities. The use of back leverage also could limit the ability of a collateralized vehicle to make distributions.***

The Company may (i) create a special purpose vehicle, contribute the Company assets to such vehicle (or make acquisitions directly through such vehicles) and cause such vehicle to make borrowings or (ii) cause multiple such vehicles to engage in joint borrowings and/or cross-collateralize assets held by such vehicles. The lender or other provider of financing in any such arrangement can be any party from which the Company is permitted to borrow, as described under "—*Credit facilities may impose limitations on the Company's business, such as caps on borrowings, or result in the Company being liable for borrowings of another party to a transaction*" above. Any arrangements entered into by such vehicle or entity (and not the Company itself), will not be considered borrowings by the Company for purposes of the limits on borrowings (or any limits on issuing additional interests) by the Company or limits on cross-collateralization. In either case of (i) or (ii), such vehicle(s) will not be treated as a single vehicle for purposes of PALCO's acquisition limitations, if any even if multiple Portfolio Assets are pledged to and at risk with respect to a borrowing with respect to one single Portfolio Asset. In connection with the foregoing, distributions from one Portfolio Asset may be used to pay interest and/or principal on borrowing secured by other Portfolio Assets, which amounts will also not be treated as interest by the Company for purposes of any limitations. The use of back leverage potentially enhances the return profile of these Portfolio Assets and the Company overall, but also increases the risk of the applicable Portfolio Assets, including the risks associated with collateralized Portfolio Assets held through the same leverage facilities. See "—*The availability of capital is generally a function of capital market conditions that are beyond the control of the Company or any Asset-Backed Instrument and this may increase the exposure of such Asset-Backed Instrument to adverse economic factors or unfavorable financing terms, which may subject the Company to risks or adversely affect its business*" below.

If the Company were to create one or more of such vehicles, the Company would depend on distributions from a vehicle's assets out of its earnings and cash flows to enable the Company to make distributions to its Shareholders. The ability of such a vehicle to make distributions will be subject to various limitations, including the terms and covenants of the debt it issues. For example, tests (based on interest coverage or other financial ratios or other criteria) may restrict the Company's ability, as the holder of a vehicle's common equity interests, to receive cash flow from these Portfolio Assets. There is no assurance any such performance tests will be satisfied. Also, a vehicle may take actions that delay distributions in order to preserve ratings and to keep the cost of present and future financings lower. As a result, there may be a lag, which could be significant, between the repayment or other realization on a loan in, and the distribution of cash out of, such a vehicle, or cash flows may be completely restricted for the life of the relevant vehicle. Such restrictions or other delays in distributions resulting from these arrangements could also result in the Series II Shareholders being subject to tax on income or gains without receiving corresponding cash distributions from the Series II, which taxes may be material.

***The Company faces heightened risk of the adverse effects associated with bridge financings, and the interest rates on such financings might not reflect that risk. When a short-term loan (or bridge financing) remains outstanding for long periods of time or when expected sources of cash to repay loans to the borrower do not become available, the interest rate charged may not adequately reflect the risk associated with the position taken by the Company.***

From time to time, the Company may provide interim financing to Asset-Backed Instruments or may "underwrite" co-investment capital in order to facilitate an acquisition, typically on an unsecured basis (which may initially be intended on a short-term basis but may become a long-term basis as more fully described below) in anticipation of a future issuance of equity or long-term debt securities, repayment, refinancing or "sell-down" to co-investors. It can be expected that the Company will make loans to Asset-Backed Instruments where such Asset requires an infusion of cash for various reasons, including, but not limited to, capital expenditures. In some situations, the Company expects to make a short-term loan or otherwise acquire on an interim basis in an Asset-Backed Instrument. In particular, the Company may make (i) acquisitions in excess of the amounts that the Company wishes to hold therein with a view to selling the excess to another person or entity within 12 months or less of such acquisition, (ii) acquisitions intended to be financed by the Company or a special purpose vehicle with a third party within 12 months or less of its acquisition or (iii) engage in financing transactions (including loan guarantees) intended to be repaid in 12 months or less entered into between the Company and an Asset-Backed Instrument or through an Asset-Backed Instrument on an interim basis pending the refinancing or sale to another person or entity in connection with, or in order to facilitate, the consummation of the Company's acquisition of the Asset-Backed Instruments or through an Asset-Backed Instruments. While any such short-term loan (or bridge financing) could be converted into a more

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permanent, long-term security, it is entirely possible, for reasons not always in the Company's control, issuance of long-term securities or other refinancing or syndication may not occur and such short-term loans (or bridge financings) may remain outstanding for long periods of time. Similarly, expected sources of cash to repay loans to the borrower may not become available. In such events, the interest rate charged may not adequately reflect the risk associated with the position taken by the Company.

Where both the Company and one or more Syndication Entities commit to all or any portion of an asset that is expected to be syndicated, PIMCO may choose to split the post-closing syndication between the Company and such Syndication Entities based on a methodology determined by PIMCO, in its discretion, which could include syndication on a non-*pro rata* basis. If there is insufficient demand and the full amount bridged by the Company and Syndication Entities in the aggregate is not repaid, refinanced or syndicated (including for reasons outside of the control of the Company or such Syndication Entities), the Company will be left with a more concentrated exposure to the relevant asset than was originally desired and a more concentrated exposure than it would have had if the Company's bridge financing were syndicated on a priority basis relative to Syndication Entities. In addition, where Syndication Entities and/or the Company commit to any portion of a follow-on investment that is expected to be syndicated and any portion of such follow-on investment is not successfully syndicated, Syndication Entities and/or the Company could as a result participate in the follow-on investment on a non-*pro rata* basis relative to their share of the original investment. In connection with any syndication undertaken together by the Company and any Syndication Entities, it is anticipated that the Company would obtain "back-to-back" commitments or support from such Syndication Entities and bear the credit risk of such Syndication Entities vis-à-vis the potential Asset-Backed Instrument. The Company may not be compensated for bearing such credit risk of Syndication Entities regarding the potential Portfolio Asset; however, it is not anticipated that such risk would be material. Furthermore, the interest rate (if any) on a bridge financing may not adequately reflect the risk associated with the unsecured position taken by the Company.

#### The Company's business may be affected by offering Co-Investments or opportunities to provide debt financing to any person.
The Operating Manager may, from time to time, depending on the type of acquisition opportunity, in its discretion, offer Co-Investments to, reserve Co-Investments for or otherwise cause the Company to participate in Co-Investments with Co-Investors (including participants in side-by-side co-investment rights). The Operating Manager may also structure a Co-Investment in a manner that does not involve forming a vehicle managed or advised by the Operating Manager or one of its affiliates, and any Shareholders so participating in such Co-Investment will not be Co-Investors for purposes of the LLC Agreement unless otherwise determined by the Operating Manager, in its discretion.

PIMCO has the authority to allocate Co-Investments among Co-Investors in any manner it deems appropriate, taking into account those factors that it deems relevant under the circumstances, including: (i) the character or nature of the Co-Investment (*e.g.*, its size, structure, geographic location, relevant industry, tax characteristics, timing and any contemplated minimum commitment threshold); (ii) the level of demand for participation in such Co-Investment; (iii) the ability of a prospective Co-Investor to analyze or consummate a potential Co-Investment on an expedited basis; (iv) certainty of funding and whether a prospective Co-Investor has the financial resources to provide the requisite capital; (v) the investing objectives and existing portfolio of the prospective Co-Investor; (vi) as noted above, whether a prospective Co-Investor meets any of the criteria described herein; (vii) the reporting, public relations, competitive, confidentiality or other issues that may also arise as a result of the Co-Investment; (viii) the legal or regulatory constraints to which the proposed instrument is expected to give rise; (ix) the ability of the prospective Co-Investor to make commitments to invest in other PIMCO Clients (including contemporaneously with the applicable Co-Investment); (x) PIMCO's own interests; (xi) whether the prospective Co-Investor can provide a strategic, sourcing or similar benefit to PIMCO and/or its portfolio investments, the Company and/or its Portfolio Assets or one or more of their respective affiliates due to industry expertise, regulatory expertise, end-user expertise or otherwise and (xii) the prospective Co-Investor's existing or prospective relationship with PIMCO, including, for example, the fact that certain insurance balance sheet investors are affiliates of PIMCO as well as PIMCO Clients. With respect to allocations influenced by PIMCO's own interests, there may be a variety of circumstances where PIMCO will be incentivized to afford Co-Investments to one Co-Investor over another. PIMCO expects that these factors will lead PIMCO to favor some potential Co-Investors over others with respect to the frequency with which PIMCO offers them Co-Investments. PIMCO also expects to allocate certain Co-Investors a greater proportion of an acquisition opportunity than others as a result of these factors. In addition, depending on the fee structure of the Co-Investment,

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if any, PIMCO could be economically incentivized to offer such Co-Investment to certain Co-Investors over others based on its economic arrangement with such Co-Investors in connection with the applicable Co-Investment or otherwise, including in connection with facilitating such Co-Investor (in its capacity as such with respect to the Company or any other PIMCO Client) to express interest and participate as a Shareholder of the Company, the terms of which will not be available for election through any "most favored nations process."

PIMCO could be contractually incentivized or obligated to offer certain Co-Investors a minimum amount of Co-Investments, or otherwise bear adverse economic consequences for failure to do so, which consequences may include, a loss of future economic rights, including performance fee or other incentive arrangements. PIMCO also could agree, in a PIMCO Client's governing documents, that all or certain of the investors in such PIMCO Client will be offered Co-Investments arising out of such PIMCO Client's investment activities on a priority basis before any other person is offered all or a portion of any such opportunity (however, such an agreement generally would be expected to be subordinate to PIMCO's ability to offer Co-Investments to other PIMCO Clients or strategic Co-Investors). Further, from time to time, PIMCO establishes PIMCO Clients for the sole purposes of investing in co-acquisition opportunities that arise. No Shareholder (i) should have any expectation of receiving a Co-Investment or (ii) will be owed any duty or obligation in connection therewith.

PIMCO could allocate Co-Investments to prospective Co-Investors that ultimately decline to participate in the offered Co-Investment. In such instance, if another Co-Investor is not identified, the Company may be unable to consummate an acquisition, or may end up holding a larger portion of an instrument than the Operating Manager had initially anticipated, in which case the Company may have insufficient capital to pursue other opportunities or may not achieve its intended asset diversification. If the Company has participated in a Co-Investment alongside any co-investment vehicle or other PIMCO Client and the Company is subsequently called upon to make an additional acquisition in respect of such Co-investment, the Company may participate in such additional acquisition for a non-*pro rata* share up to the full amount of such additional acquisition.

Co-Investments involving the raising of passive investor capital will generally be made at substantially the same time as (or within a reasonable time before or after) the Company's acquisition and on economic terms at the level substantially no more favorable to the applicable Co-Investors than those on which the Company acquires at the time of such Co-Investment (to the extent reasonably practicable, taking into account such facts and circumstances as are applicable with respect to such Co-Investment at the time of such Co-Investment and it being understood that legal, tax, regulatory or similar considerations or limitations may affect the form of such Co-Investments). Any such Co-Investment (other than a Co-Investment by another PIMCO Client that was not formed for the purpose of co-investing in the applicable Co-Investment) generally will be sold or otherwise disposed of at substantially the same time (and, in the case of a partial disposition, in substantially the same proportion) as the Company's disposition of its interest in such instrument and on economic terms at the level substantially no more favorable to such Co-Investors than those on which the Company disposes of its interest in such instrument at the time of such disposition (to the extent reasonably practicable, taking into account such facts and circumstances as are applicable with respect to such Co-Investment at the time of the disposition of such Co-Investment), unless, in either case, the Operating Manager determines in good faith that (i) other terms, proportions or timing are (a) advisable due to legal, tax, regulatory or similar considerations or limitations or (b) advisable in order to facilitate a transaction or (ii) such Co-Investment is or was intended, on or prior to the date of the consummation of the relevant instrument, to be syndicated. The previous sentence will also not apply to any investments by (1) management or employees of the relevant Portfolio Asset, (2) consultants or advisors with respect to such Portfolio Asset, (3) preexisting investors or other persons that are not affiliates of the Operating Manager and are associated with such Portfolio Asset, (4) any joint-venture partner, (5) any private fund or similar person or business sponsored, managed or advised by persons other than PIMCO and (6) any person or entity whom the Operating Manager believes will be of benefit to the Company or one or more Portfolio Assets or who may provide a strategic, sourcing, tax, structuring, regulatory or similar benefit to a Portfolio Asset due to industry expertise, regulatory expertise, end-user expertise or otherwise (including private funds sponsored by persons other than PIMCO).

Co-Investors in certain transactions could be offered the ability to participate in any leverage arrangements utilized by the Company, or in similar arrangements designed to approximate the leverage arrangements utilized by the Company; however, such opportunities will not always be available or practicable, the terms of any such arrangements utilized for Co-Investors may differ from those of the arrangements utilized for the Company and, even where available, Co-Investors will not be required to participate or to make the same election as one another in this

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regard. Any of the foregoing could result in the returns from such instrument experienced by the Company, on the one hand, differing from the returns experienced by some or all of the Co-Investors, on the other hand, and no such transaction, arrangement or variation will be deemed to contravene the investment-level alignment principles contemplated by the applicable agreement or governing document. Further, the use of such leverage arrangements by the Company and not by a co-investment vehicle could present conflicts of interest for PIMCO in terms of how it manages the underlying asset or in the event of a default or margin call in respect of the asset that is the subject of a margin loan.

With respect to broken deal expenses, the Operating Manager may, but is not required to, seek to cause Co-Investors to bear their respective *pro rata* portions of broken deal expenses; however, there can be no assurance that the Operating Manager will be successful in causing any such Co-Investors to bear their respective *pro rata* portions of such broken deal expenses. Any such fees, costs or expenses related to Co-Investments (irrespective of whether such Co-Investments are ultimately consummated) that are not borne by Co-Investors, will be considered Operating Expenses of, and be borne by, the Company. In practice, it is anticipated that the Company will be responsible for the payment of all broken deal expenses, including legal fees, due diligence expenses, travel and related expenses and other fees, costs and expenses.

With respect to a given proposed acquisition or proposed disposition considered by the Company and one or more other PIMCO Clients, (i) to the extent not reimbursed by a third party, all third-party and internal expenses incurred by the Company in connection with such proposed acquisition, where such proposed acquisition is not ultimately made by the Company, or in connection with such proposed disposition, where such proposed disposition is not actually consummated by the Company and (ii) to the extent not reimbursed by a third party, all third-party and internal expenses incurred by any other PIMCO Client in connection with such proposed acquisition, where such proposed acquisition is not ultimately made by the other PIMCO Client but is made by the Company, or in connection with such proposed disposition, where such proposed disposition is not actually consummated by the other PIMCO Client but is consummated by the Company, may be borne, in whole or in part (at the Operating Manager's sole discretion) by the Company (and to the extent borne by the Company, will be allocated *pro rata* to all Shareholders). For purposes of this paragraph, the third-party and internal expenses referred to herein include, without limitation, commitment fees that become payable in connection with a proposed acquisition that is not ultimately made, refundable deposits, legal, tax, administrative, accounting, advisory and consulting fees and expenses, travel, accommodation, dining (including, *e.g.*, late-night meals for Operating Manager employees working on a proposed acquisition or disposition), entertainment and related expenses, consulting and printing expenses, forfeited deposits or similar payments.

In connection with any Co-Investment, the Operating Manager or any of its affiliates will retain the portion of the Special Fees allocable or otherwise attributable to the closing of the acquisition of instruments by any such Co-Investors, whether or not such closing occurs.

PIMCO is under no obligation to provide Co-Investments and could offer a Co-Investment to one or more Co-Investors without offering such opportunity to other potential Co-Investors and will take into consideration, among other things, the size of a Shareholder's subscription and a number of other factors in determining whether to provide such opportunities to such Shareholder. The Operating Manager will, in its discretion, determine if an acquisition by the Company alongside or with another person or entity in a given Portfolio Asset or other issuer of securities constitutes a Co-Investment.

In those circumstances where such Co-Investors involve a Portfolio Asset's management group, such Co-Investors may receive compensation arrangements relating to the investment, including incentive compensation arrangements. Some of the Co-Investors with whom the Company may co-invest have preexisting investments with PIMCO, and the terms of such preexisting investments may differ from the terms upon which such persons may acquire with the Company in such acquisition.

The Company may acquire an interest in an instrument through a sale or other disposition of a portion of another PIMCO Client's interest in such instrument. In connection therewith, unless otherwise determined by the Operating Manager, the Company will pay to such PIMCO Client a purchase price determined in accordance with PIMCO's policies and procedures and the governing documents of the applicable PIMCO Clients.

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In order to facilitate the acquisition of, or other investment in or extension of credit to, a Portfolio Asset, the Company may make (or commit to make) an acquisition that exceeds the desired amount with a view to selling a portion of such asset to Co-Investors or other persons prior to or within the 12-month period after the closing of the acquisition or otherwise to one or more other PIMCO Clients. In such event, the Company will bear the risk that the transaction will not be consummated, or that any or all of the excess portion of such instrument may not be sold or may only be sold on unattractive terms, and that, as a consequence, the Company may bear the entire portion of any break-up fee or other fees, costs and expenses related to such instrument, including break-up fees and hold a larger than expected portion of such Portfolio Asset or other instrument or may realize lower than expected returns from such instrument. The Operating Manager endeavors to address such risks by requiring such acquisitions to be in the best interests of the Company, regardless of whether any sell-down ultimately occurs. The Operating Manager or any of its affiliates will not be deemed to have violated any duty or other obligation to the Company or any of its Shareholders by engaging in such acquisition and sell-down activities.

Any references in this Annual Report to "Co-Investment," "Co-Investments," "Co-Investors" and any similar terminology are intended to refer to acquisition opportunities that are allocated to the Company based on its strategy and objectives and with respect to which the Operating Manager or PIMCO has, in each case, in its discretion, determined that it is appropriate to offer the opportunity to co-invest alongside the Company to one or more such Co-Investors. Any such references are not intended to refer to investments made by persons in debt or similar securities (including certain types of securities with equity-like attributes, such as preferred equity) that are issued by Portfolio Assets, including debt or similar securities with respect to which Affiliated Service Provider that may act as a broker or dealer in reselling such debt or similar securities or otherwise assisting in structuring or facilitating the initial resales of such debt or similar securities under Rule 144A under the Securities Act or otherwise. By way of example only, no financial institution or other person that is investing in the corporate debt or similar securities issued by an Asset or otherwise providing any form of debt financing in connection with the Company's acquisition of such Asset will be deemed a "co-investor" for purposes of this Annual Report or the LLC Agreement, nor will any such acquisition by any such person in such corporate debt or similar securities be deemed a "co-investment" or "co-investments" for purposes of this Annual Report or the LLC Agreement. Further, if the Company acquires (or commits to acquire) certain outstanding debt or similar securities of an Asset or acquires (or commits to acquire) debt or similar securities issued (or proposed to be issued) in connection with the Company's acquisition of an Asset, the Company will not be deemed to be co-investing with any other holder of any such securities, no such person will be deemed a Co-Investor in respect of their acquisition of such securities and it is possible that none of the Operating Manager or PIMCO will be under any obligation to offer the right to participate in the acquisition of such securities alongside the Company to any Co-Investor who is co-investing alongside the Company in the equity (or similar) securities of such Portfolio Assets, unless, in each case, the Operating Manager determines otherwise, in its discretion. Moreover, Affiliated Service Provider's offering, placement, arrangement, underwriting or other role with respect to the sale or resale of debt or other securities will not be subject to any of the Co-Investment allocation processes, procedures, considerations or restrictions (if any) that are contemplated by this Annual Report or the LLC Agreement.

The commitment of Co-Investors to a Portfolio Assets could be substantial and such acquisitions may involve risks not present in acquisitions where such Co-Investors are not involved. Any fees, costs or expenses related to Co-Investments will generally be borne, directly or indirectly (including by the Asset), by the Company, irrespective of whether such Co-Investments are ultimately consummated, and include, among other things, broken deal expenses and any other expenses that a Co-Investor refuses to bear. All such amounts, including broken deal expenses that are not borne by Co-Investors, will be considered Operating Expenses of, and be borne by, the Company. Further, the Company may, in certain circumstances, be liable for the entire amount of such fees, costs and expenses, even if Co-Investors commit to participate in the relevant acquisitions at the same time as the Company. Further, it is possible that a Co-Investor may experience financial, legal or regulatory difficulties, may at any time have economic, tax or business interests or goals that are inconsistent with those of the Company, may take a different view from PIMCO as to the appropriate strategy for an acquisition or may be in a position to take action contrary to the Company's objectives. Additionally, the Company's position could also be diluted or subordinated by subsequent investments of Co-Investors. Finally, the Company may in certain circumstances be liable for the actions or omissions of Co-Investors. See also "—*The Company's business may be affected by offering Co-Investments or opportunities to provide debt financing to any person*" above.

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As described in "—*Potential Conflicts of Interest—Other Activities of the Operating Manager*," PIMCO and its affiliates (which may include participation by PIMCO professionals and employees and other PIMCO Clients or entities and other advisors/relationships of PIMCO) will be permitted to acquire Portfolio Assets outside of the Company, on terms no more favorable than the terms on which the Company participates in such asset to the extent reasonably practicable and subject to legal, tax, regulatory or similar considerations applicable to such persons. Such Co-Investments, if offered, will be in addition to any other Co-Investments offered to any other person.

In addition to one or more investment vehicles through which PIMCO will offer certain qualified PIMCO professionals and employees (and in certain cases, employees of portfolio investments of PIMCO or PIMCO Clients) the opportunity to invest in the Company, PIMCO, including PIMCO professionals and employees and other PIMCO Clients or entities and other key advisors/relationships of PIMCO, are permitted to invest in portfolio investments outside of the Company (the "PIMCO Co-Investment").

***Acquisitions with Syndication Entities or other third parties could subject the Company to a conflict of interest in determining the portion of such acquisition to be allocated to the Company.***

In addition to the ability to syndicate the Company's assets to Co-Investors as described herein, PIMCO has established one or more investment vehicles (which, or the investors in which, include PIMCO affiliates, PIMCO Clients and third parties) that are dedicated syndication vehicles whose purpose includes committing to investments (in the form of equity or debt financing in either the same or different classes, series or tranches) including alongside the Company and/or other PIMCO Clients, with a view toward syndicating all or a portion of certain of such assets to the Company, other PIMCO Clients, PIMCO professionals, employees or other professionals and their friends and family members (including their respective family offices), PIMCO itself, co-investors and/or other third parties in certain circumstances (each a "Syndication Entity"). Syndication Entities are anticipated to be permitted to be offered the opportunity to participate in acquisition opportunities only after the Company has been allocated its share of the applicable opportunity (as determined pursuant to PIMCO's allocation policies and procedures) and any Shareholder co-investment syndication has been accounted for. In the case of acquisitions, it is anticipated that the presence of a Syndication Entity could be beneficial to the Company and the potential acquisition in certain circumstances, including, among other things: (i) where the Company has exhausted its available capital for the applicable transaction; (ii) a customary co-invest syndication is not available or practical under the circumstances or does not (or is not expected to) result in a successful syndication of the full amount required; (iii) an acquisition is larger than what the Company would otherwise be able to speak for; (iv) a Syndication Entity could help to reduce concentration risk through syndicating excess deal capacity (after giving effect to the portions of the acquisitions that are allocated to the Company or, under certain circumstances, offered to Co-Investors); or (v) timing, legal, regulatory, tax or similar constraints could be mitigated or nullified to the extent a Syndication Entity commits to the transaction alongside the Company. Consistent with PIMCO's prior practice and experience, it is anticipated that co-investment opportunities will continue to play an important role in the Company's acquisition program and will often be available for relatively large acquisitions (it being understood that there can be no guarantee on the ultimate availability of Co-Investment opportunities), and it is PIMCO's belief that a Syndication Entity could contribute to the execution of this program by allowing the Company to source and execute relatively larger transactions. The presence of a Syndication Entity could broaden the universe of attractive acquisitions available to the Company by allowing the Company to speak for larger deals while maintaining both what PIMCO believes to be appropriate asset construction within the Company and PIMCO's typical levels of co-investor participation (without increasing duplicative exposure for co-investors) and could enable the Company to avoid complex consortium dynamics.

Such acquisitions will likely involve risks not present in acquisitions where a third party is not involved, including the possibility that a co-venturer or partner of the Company will at any time have economic or business interests or goals that are inconsistent with those of the Company, or may be in a position to take action contrary to the Company's objectives. In addition, the Company could be liable for actions of its co-venturers or partners.

While it is not anticipated that a Syndication Entity will be entitled to be offered any acquisition opportunities in any particular strategy on a priority basis, PIMCO could be subject to a conflict of interest in connection with its determination of the portion of such acquisition opportunity that is to be allocated to the Company or offered to Co-Investors. Further, Syndication Entities are anticipated to participate in the equity and debt of Asset-Backed Instruments, including where the Company participates (along with any Co-Investors) only in the equity of such Asset-Backed Instruments, in another level of the capital structure or in a non-*pari passu* manner vis-à-vis such Syndication Entities. No such participation will be included in the PIMCO Co-Investment, nor will any such participation constitute a Co-Investment or be subject to the limitations thereon set forth in the LLC Agreement. To the extent any such arrangements are entered into, they could result in fewer co-investment opportunities being made available to the Shareholders.

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In determining the allocation of such Co-Investments, PIMCO considers a multitude of factors, including its own interest in the opportunity and any PIMCO Co-Investment. Additionally, to the extent a deposit, commitment (financial or otherwise) or other contingency is required or otherwise viewed at the time as prudent for an acquisition or transaction process, the Company or another PIMCO Client could make the deposit, provide the commitment or make such arrangements to support and be liable for the contingency on behalf of itself and other PIMCO Clients. See "—*The Company's business may be affected by offering Co-Investments or opportunities to provide debt financing to any person", and "—Potential Conflicts of Interest—Other Activities of the Operating Manager"* below.

In addition, PIMCO or one or more Affiliated Service Providers are expected to receive fees (including from investors acquiring interests in the relevant investment through the applicable syndication and from Asset-Backed Instruments) in connection with a Syndication Entity's participation in any acquisition. Any such fees, as well as the portion of any Special Fees allocable to a Syndication Entity's participation in any acquisition alongside the Company, will be for the benefit of PIMCO or the applicable Affiliated Service Provider, and will not be treated as Special Fees or offset Management Fees payable by the Company. Shareholders, including certain strategic partners and third-party investors, who ultimately participate in an acquisition syndicated through a Syndication Entity, may participate pursuant to more favorable rights or pre-negotiated terms, including with respect to discounts or rebates of performance-based compensation or management fees. See generally "—*Potential Conflicts of Interest—Other Activities of the Operating Manager*."

#### The Company faces heightened risks with non-U.S. currencies because the value of the currency with respect to the U.S. dollar may change.
While the Company has made and expects to continue to make acquisitions that are denominated in U.S. dollars, the Company may also acquire Portfolio Assets denominated in other currencies around the world. Portfolio Assets that are denominated in currencies other than U.S. dollars are subject to the risk from an investor's perspective that the value of the currency could change in relation to one or more other currencies, including the U.S. dollar, the currency in which the books of the Company are kept and contributions and distributions generally will be made. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. The Company will incur costs in converting proceeds from one currency to another. The Operating Manager may, but is under no obligation to, employ hedging techniques to minimize these risks, the costs of which will be borne by the Company, although there can be no assurance that such strategies will be effective. See "*—The Company may engage in a variety of over-the-counter and other derivative transactions as part of their hedging or other strategies, which may subject the Company to increased risk or adversely affect the Company's business. The Company could buy or sell options which involves the risk of losing the value of or incurring liability relating to those options"* above. Non-U.S. prospective investors should note that the Shares are denominated in U.S. dollars. Prospective investors subscribing for Shares in any country in which U.S. dollars are not the local currency should note that changes in the value of foreign exchange between the U.S. dollar and such currency may have an adverse effect on the value, price or income of the investment to such prospective investors. In all instances, the fees, costs and expenses associated with hedging and similar transactions will be Operating Expenses and not considered borrowings by the Company.

***The Company's Asset-Backed Instruments may enter into financing arrangements which involve risk of loss, covenants to maintain certain financial ratios or reduce or suspend distributions to the Company.***

To the extent that the Company enters into financing arrangements, it is possible that such arrangements contain provisions that expose it to particular risk of loss. For example, any cross-default provisions could magnify the effect of an individual default. A cross-default provision in a bond indenture or loan agreement puts a borrower in default if the borrower defaults on another obligation. If a cross-default provision were exercised, this could result in a substantial loss for the Company, and/or the Company could lose its interests in performing acquisitions if they are cross-collateralized with poorly performing or non-performing acquisitions. Also, the Company or any Asset-Backed Instrument may, in the future, enter into financing arrangements that contain financial covenants that could require it to maintain certain financial ratios. If the Company or an Asset-Backed Instrument were to breach the financial

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covenants contained in any such financing arrangement, it might be required to repay such debt immediately in whole or in part, together with any attendant costs, and the Company might be forced to sell Asset-Backed Instruments. The Company might also be required to reduce or suspend distributions. Such financial covenants would also limit the ability of the Operating Manager to adopt the financial structure (*e.g.*, by reducing levels of borrowing) which it would have adopted in the absence of such covenants. In addition, pursuant to the Operating Agreement, the Operating Manager is permitted to pledge assets of the Company and also guarantee the indebtedness of others (including Asset-Backed Instruments and entities through which acquisitions by the Company are held).

***Certain clients of financial intermediaries who purchase certain Shares other than the Standard Shares may have a lower Management Fee and Performance Fee and other fees associated with them compared with the Standard Shares offered. Investors may not know whether their financial intermediaries will be eligible to acquire such Shares.***

The Company offers additional Classes of Shares besides the Standard A Shares and Standard B Shares (collectively, the "Standard Shares"). Such additional Classes of Shares were offered prior to the Launch Date and continue to be offered by the Company (collectively, the "Non-Standard Shares") as described in "*Item 1. Business*—*Private Offering of Shares*."

Investors are subject to the same investment risks regardless of whether they are eligible to acquire the Non-Standard Shares, which are structured to receive greater benefits as compared to the Standard Shares in this offering. Lower or no upfront selling commissions, Dealer Manager Fees or shareholder servicing fees are paid with respect to the Non-Standard Shares. Additionally, lower Management Fees and Performance Fee are paid with respect to the Non-Standard Shares compared with the Standard Shares. As a result, the per Share amount of distributions on the Non-Standard Shares could be higher compared to the Standard Shares. To the extent lower Management Fees and Performance Fees are paid with respect to the Non-Standard Shares, the Management Fees or Performance Fees associated with the Standard Shares are not affected. The differences in fees between different types of Shares may result in the dilution of Shares with higher fees rates compared to Share types with lower fees.

Investors' ability to acquire Non-Standard Shares, and receive the benefits associated with the Non-Standard Shares, may depend on the eligibility of investors' financial intermediaries through which they purchase the Non-Standard Shares. For example, if an investor purchases Shares through a financial intermediary that does not meet the applicable eligibility criteria set forth in "*Item 1. Business*—*Private Offering of Shares*," then that investor will not qualify to purchase the Non-Standard Shares without further action by the Shareholder. An investor may not know whether their financial intermediary is eligible to acquire Non-Standard Shares. Accordingly, investors should consult with their financial intermediary about the ability to acquire Non-Standard Shares and determine if it is in the investor's best interest to invest through a financial intermediary eligible to sell or recommend the Non-Standard Shares.

#### The Company may face risks associated with its use of certain computer and algorithmic research tools.
Research and creative tools that harness generative artificial intelligence (collectively, "Computer and Algorithmic Research Tools"), as well as other machine learning techniques, will continue to become more accessible to PIMCO, to the Company and to its Portfolio Assets. Prospective investors should anticipate that PIMCO will utilize Computer and Algorithmic Research Tools in connection with its business activities, including acquisition activities. The use of Computer and Algorithmic Research Tools brings with it known, anticipated, and as-yet-unknown risks and conflicts, including the risk that PIMCO's compliance and operational policies and procedures will not anticipate every potential issue and conflict, and that PIMCO's surveillance and control systems might not be sufficient to identify every instance of non-compliance. Among other things, this means that PIMCO's policies and procedures relating to Computer and Algorithmic Research Tools will continue to evolve rapidly, and without notice to investors. As is the case with all third-party services and products, PIMCO will exercise appropriate levels of review and testing before deployment, but the relative novelty of Computer and Algorithmic Research Tools likely will result in more incorrect or unclear inputs into PIMCO's acquisition and operations process. This could lead to an increase in interpretative issues, errors of judgement and systems errors, notwithstanding the benefits that deploying new services and products is expected to create. Where appropriate, PIMCO will work with providers and vendors to improve or fix licensed services and products, but that will not always be the case. To the extent that PIMCO develops proprietary Computer and Algorithmic Research Tools, similar risks will exist.

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PIMCO's use of Computer and Algorithmic Research Tools will be subject to its policies and procedures on cybersecurity, privacy and confidentiality. However, the effectiveness of those policies when using Computer and Algorithmic Research Tools is dependent on the licensor adhering to its contractual commitments and to applicable law, as well as the effectiveness of the licensor's (and PIMCO's) cybersecurity, systems and other structural safeguards being effective in design and operation. To the extent that there is breach or failure in any of these safeguards, investors could be harmed by the theft, misappropriation or release of their confidential information, or by an impairment in the value of the Company's Portfolio Assets directly or indirectly caused by such breach or failure.

Independent of its context of use, certain varieties of Computer and Algorithmic Research Tools are generally highly reliant on the collection and analysis of large amounts of data, and it is not possible or practicable to incorporate all relevant data into the model that Computer and Algorithmic Research Tools utilize to operate. Therefore, it is possible that certain data in such models may contain a degree of inaccuracy and error – potentially materially so – and that such data as well as the algorithms in use could otherwise be inadequate or flawed, which would be likely to degrade the effectiveness of Computer and Algorithmic Research Tools. Such models also are subject to inherent bias (owing to the structure of its initial programming) as well as acquired biases (reflecting the data upon which it was trained). If the data PIMCO, the Company or its Portfolio Assets (or third parties whose services such parties rely on) use in connection with the possible development or deployment of Computer and Algorithmic Research Tools is incomplete, inadequate or biased in some way, the performance of PIMCO, the Company or its Portfolio Assets' products, services, and businesses could suffer. Further, the use of Computer and Algorithmic Research Tools could result in claims by third parties of infringement, misappropriation or other violations of intellectual property, including based on the use of large datasets to train Computer and Algorithmic Research Tools, or the use of output generated by Computer and Algorithmic Research Tools, in either case which may contain or be substantially similar to third-party material protected by intellectual property, including patents, copyrights or trademarks. PIMCO, the Company or its Portfolio Assets may not be in a position to control the manner in which third-party Computer and Algorithmic Research Tools are provided, developed, used or maintained. To the extent that PIMCO, the Company or its Portfolio Assets are exposed to the risks of using Computer and Algorithmic Research Tools, any such inaccuracies or errors could have adverse impacts on PIMCO, the Company or its Portfolio Assets.

PIMCO, the Company and its Portfolio Assets could be exposed to risks to the extent third-party service providers, or any counterparties use Computer and Algorithmic Research Tools in their business activities. There is also a risk that Computer and Algorithmic Research Tools may be misused or misappropriated by PIMCO, the Company or its Portfolio Assets and/or third parties engaged by such parties. For example, a user may input confidential information, including material non-public information or personal information, into a Computer and Algorithmic Research Tool, resulting in such information becoming part of a dataset that is accessible by third-party Computer and Algorithmic Research Tools and users, including competitors of PIMCO, the Company or its Portfolio Assets. Such actions could subject PIMCO, the Company or its Portfolio Assets to legal and regulatory investigations and/or actions. In addition, PIMCO, the Company and its Portfolio Assets may not be able to control how third-party Computer and Algorithmic Research Tools that such parties choose to use are developed or maintained, or how data such parties input is used or disclosed, even where such parties have sought contractual protections with respect to these matters. PIMCO, the Company and its Portfolio Assets may be subject to legal and regulatory investigations and/or actions related to use of Computer and Algorithmic Research Tools, including as related to alleged misuse or misappropriation of data. This could also have an adverse impact on the reputation of PIMCO, the Company or its Portfolio Assets. We may also communicate externally regarding Computer and Algorithmic Research Tools initiatives, including PIMCO, the Company and its Portfolio Assets' development and use of Computer and Algorithmic Research Tools, if any, which could subject such parties to the risk of being accused of making inaccurate or misleading statements regarding such parties' ability to avail themselves of the potential benefits of such Computer and Algorithmic Research Tools.

Regulations related to Computer and Algorithmic Research Tools may also impose certain obligations on organisations, and the costs of monitoring and responding to such regulations, as well as the consequences of non-compliance, could have an adverse effect on PIMCO, the Company or its Portfolio Assets. For example, the EU has introduced a new regulation applicable to certain artificial intelligence ("AI") systems and the data used to train, test and deploy them (the "EU AI Act"). The EU AI Act, which entered into force on August 1, 2024, establishes a risk-based governance framework which categorises AI systems based on the risks associated with their intended purposes (e.g., "unacceptable" or "high" risk). Use of AI systems that pose "unacceptable" risk are prohibited outright and in

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due course material requirements are due to be imposed on both the providers and deployers of AI systems posing a "high" risk. The EU AI Act also sets out significant penalties for non-compliance, including fines of up to 7% of annual worldwide turnover or €35 million (whichever is higher) for the most serious breaches. The EU is currently considering targeted amendments to the EU AI Act. Preparing for and complying with the EU AI Act and other regulations related to Computer and Algorithmic Research Tools could involve material compliance costs and/or adversely affect the operations or results of PIMCO, the Company or its Portfolio Assets.

As technological developments in Computer and Algorithmic Research Tools, and their current and future applications continue to evolve, the full extent of current or future risks related thereto is not possible to predict. In addition, new regulations or changes in the interpretation of existing regulations relating to Computer and Algorithmic Research Tools may also impose on PIMCO, the Company and its Portfolio Assets, certain obligations and costs related to monitoring and compliance.

***The Company's business may be affected by using hedging strategies which are intended to reduce certain risks but may not achieve all anticipated benefits and may entail certain other risks such as the risk that counterparties to such transactions default on their obligations and the risk that the prices and/or cash flows being hedged behave differently than expected.***

In connection with certain acquisitions, the Company and/or its Portfolio Assets expect to employ hedging strategies (whether by means of derivatives or otherwise and whether in support of financing techniques or otherwise) that are designed to reduce the risks to the Company and/or such Portfolio Assets of fluctuations in interest rates, securities, commodities and other asset prices and currency exchange rates, as well as other identifiable risks. While the transactions implementing such hedging strategies are intended to reduce certain risks, such transactions themselves entail certain other risks, such as the risk that counterparties to such transactions default on their obligations and the risk that the prices and/or cash flows being hedged behave differently than expected. Thus, while the Company and/or its Portfolio Assets may benefit from the use of these hedging strategies, unanticipated changes in interest rates, securities, commodities and other asset prices or currency exchange rates or other events related to hedging activities may result in a poorer overall performance for the Company and/or its asset-based finance instruments than if it or its Portfolio Assets had not implemented such hedging strategies.

With respect to any potential financings, general increases in interest rates over time may cause the interest expense associated with the Company's borrowings to increase and the value of the Company's debt acquisitions to decline. The Company may seek to stabilize its financing costs as well as any potential decline in its assets by entering into derivatives, swaps or other financial products in an attempt to hedge the Company's interest rate risk. In the event the Company pursues any projects or acquisitions outside of the United States, the Company may have foreign currency risks related to its revenue and operating expenses denominated in currencies other than the U.S. dollar. The Company may in the future enter into derivatives or other financial instruments in an attempt to hedge its foreign currency exchange risk. It is difficult to predict the impact hedging activities would have on the Company's results of operations.

***The availability of capital is generally a function of capital market conditions that are beyond the control of the Company or any Asset-Backed Instrument and this may increase the exposure of such Asset-Backed Instrument to adverse economic factors or unfavorable financing terms, which may subject the Company to risks or adversely affect its business.***

The availability of capital is generally a function of capital market conditions that are beyond the control of the Company or any Asset-Backed Instrument. The Company will typically leverage its acquisitions with debt financing at the Company, special purpose vehicle and/or Asset-Backed Instrument level. Utilization of such leverage (including through credit facilities (including subscription line facilities), guarantees, letters of credit, equity commitment letters, reverse repurchase agreements, dollar rolls, margin financing, options, futures, repurchase agreements, contracts, short sales, swaps (including TRS) and other derivative instruments or similar credit support (including on a joint and several or cross-collateralized basis or other forms of indebtedness or credit support)) will result in fees, expenses and interest costs borne by the Company. Although Asset-Backed Instrument-level debt is generally expected to be recourse only to the financed Asset-Backed Instrument, the Company may be required to provide equity commitment letters, completion guarantees, payment guarantees, environmental indemnities and so-called "non-recourse carve out guarantees" (*e.g.*, guarantees of losses suffered by the lender, and in some cases of the

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full principal amount of the loan, in the event that the borrowing entity or its equity owners engage in certain conduct such as fraud, misappropriation of funds, unauthorized transfers of the financed property or equity interests in the borrowing entity, the commencement of a voluntary bankruptcy case by the borrowing entity or under other circumstances provided for in such guaranty or indemnity). Such arrangements will not constitute borrowings or guarantees under the LLC Agreement and will not be subject to the related caps, even though these arrangements pose many of the same risks and conflicts associated with the use of leverage that the caps intend to address. Although the use of leverage could enhance returns and increase the number of acquisitions that can be made by the Company, because leveraged assets are inherently more sensitive to declines in revenues and to increases in expenses and interest rates, they may also be at substantially increased risk of loss.

As an example, a special purpose vehicle could enter into a "margin loan" whereby it borrows money from a bank (distributing the proceeds to the applicable Series for further distribution to the Shareholders, including, where applicable, Performance Fee distributions to the Operating Manager) and pledges the Shares of the underlying Asset-Backed Instrument (or other asset) as collateral for the loan. Under these arrangements, the special purpose vehicle would typically be subject to a margin call if the value of the underlying assets decreases significantly. In order to meet the margin call, the special purpose vehicle will need additional assets to avoid foreclosure. Even if the margin loan is not recourse to the applicable Series (which is the expectation), such Series may contribute additional capital to the special purpose vehicle to avoid adverse consequences to the acquisition, including foreclosure on the collateral at a lower valuation. The interests of Shareholders and Co-Investors – or of PIMCO with respect thereto, where Co-Investors do not bear Performance Fee – could diverge in connection with the utilization of a margin loan for an asset that includes a co-investment. PIMCO will seek to cause Co-Investors to participate in any such margin loan. Furthermore, it is possible that an Affiliated Service Provider could earn Other Fees in connection with the structuring, placement or syndication of any margin loan that is directly or indirectly for the benefit of the Company or co-investment vehicles.

The leveraged capital structure of any Asset-Backed Instrument will increase the exposure of such Asset-Backed Instrument to adverse economic factors (such as rising interest rates, changes in commodity prices, downturns in the economy or a deterioration in the condition of such Asset-Backed Instrument or its industry), each of which may impair such Asset-Backed Instrument's ability to finance its future operations and capital needs and may result in the imposition of restrictive financial and operating covenants. If any such factors cause or contribute to such Asset-Backed Instrument's inability to generate sufficient cash flow to meet principal and/or interest payments on its indebtedness or similar payments or obligations, such Asset-Backed Instrument's flexibility to respond to changing business and economic conditions may be constrained materially and may increase the risk of insolvency and the value of the applicable Series' Asset-Backed Instrument could be significantly reduced or even eliminated. Similarly, with respect to leverage at the level of the applicable Series, if the assets of such Series are not sufficient to pay the principal of, and interest on, the debt when due, such Series could sustain a total loss of its acquisitions. The ability of Asset-Backed Instruments and other issuers to refinance debt securities may depend on their ability to sell new securities in the public high-yield debt market or otherwise, or to raise capital in the leveraged finance debt markets, which historically have been cyclical with regard to the availability of financing.

Each Series may enter into contractual arrangements, including deferred purchase price payments, staged funding obligations, earn outs, milestone payments, equity commitment letters and other forms of credit support, and other contractual undertakings such as indemnification obligations or so-called "bad-boy" guarantees, that obligate it to fund amounts to special purpose vehicles, Asset-Backed Instruments or other third parties. Such arrangements may not constitute borrowings or guarantees under the LLC Agreement and will not be subject to the related caps, even though these arrangements pose many of the same risks and conflicts associated with the use of leverage that the caps intend to address.

In addition, if all or a portion of the acquisition cost of an asset has been funded with the proceeds of borrowing under a credit facility and no capital contributions (or capital contributions for less than the full acquisition cost, as applicable) have been made by Management Fee-bearing Shareholders for purposes of such acquisition, the "Adjusted Cost" of such acquisition will be the cost thereof, as paid with the proceeds of borrowing under such credit facility (*i.e.*, Management Fees, to the extent calculated on the basis of Adjusted Cost, will be payable on the cost basis of such acquisition notwithstanding that it was acquired using such credit facility rather than through capital contributions). The Operating Manager will, in its discretion, select and apply the calculation methodology for determining the cost basis of the applicable Series' assets for purposes of calculating the Management Fee, including

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in connection with determining the types and amounts of expenses associated with an acquisition that will be included in the calculation of Adjusted Cost (which will include expenses capitalized into the acquisition cost of an asset and certain ongoing expenses associated with such asset) and whether and to what extent a disposition has occurred with respect to an asset, including for purposes of determining whether Adjusted Cost should be reduced or distributions should be made. The Operating Manager will be subject to conflicts of interest in making that determination given the associated economic consequences. Additionally, the Operating Manager will determine, in its discretion, whether the Management Fees with respect to an Asset-Backed Instrument will be calculated as of, and, therefore include any amounts accrued, posted or committed (including any upfront margin) commencing from, such date through the date of a full or partial disposition thereof, the trade date or the settlement or closing date of such Asset-Backed Instrument, on a case by case basis.

The instruments and borrowings utilized by each Series to leverage acquisitions may be collateralized by any assets of such Series (and may be cross-collateralized with the assets of special purpose vehicles of the Company, Asset-Backed Instrument or other PIMCO Client formed for the purpose of co-investing in a particular acquisition alongside the Company, and such entities may be held jointly and severally liable for the full amount of the obligations arising out of such instruments and borrowings). Accordingly, each Series may pledge its assets in order to borrow additional funds or otherwise obtain leverage for acquisitions or other purposes (including to make distributions, enhance returns and provide financing for Co-Investors (as defined above) prior to permanent financing being established). The amount of borrowings which each Series may have outstanding at any time may be substantial in relation to its capital.

The principal, interest expense and other costs incurred in connection with any leverage used by each Series may not be recovered by the proceeds from the upfront commitment, unused fees or similar fees, if any, from the issuer of a portfolio investment, income from interest and repayment of borrowings by the Asset-Backed Instrument. Lenders may, under the terms of financing arrangements put in place with them, have the right to cause the Operating Manager to withhold distributions from the applicable Series for various reasons, including in the event that any Asset-Backed Instrument fails to perform to expectation.

The extent to which the applicable Series uses leverage may have consequences to the Shareholders, including the following: (i) use of cash flow (including capital contributions) for debt service and related costs and expenses, rather than for a Joint Venture or Programmatic Acquisition in excess of its reserved amount, distributions or other purposes; (ii) increased interest expense if interest rate levels were to increase significantly; (iii) in certain circumstances, prematurely harvesting investments to service such Series' debt obligations; and (iv) limitation on the flexibility of the Company to make distributions to its Shareholders or sell assets that are pledged to secure the indebtedness.

In addition, and as discussed below under *"—The Company's acquisitions and assets are affected by the general economy and recent events, including market volatility, inflation and public health crises"* uncertainty in the global financial system could lead to an overall weakening of the U.S. and global economies, which could adversely affect the financial resources of the applicable Series' Asset-Backed Instrument. Favorable borrowing conditions in the debt markets, which historically have been cyclical, have often benefited investments by PIMCO Clients and enabled PIMCO to make substantial distributions from the portfolio investments of its managed funds. However, there have been periods of volatility, uncertainty and a deterioration of the global credit markets which reduced shareholder demand and liquidity for investment-grade, high-yield and senior bank debt and caused some investment banks and other lenders to be unwilling (or significantly less willing) to finance new investments or to offer committed financing for investments on terms less favorable than terms offered in the past, making it significantly more difficult for sponsors or potential buyers to obtain favorable financing. There remain elevated levels of uncertainty in the global financial markets today and there can be no certainty that recurring periods of limited financing availability (or an increase in the interest cost) for leveraged transactions could return or persist, and should such conditions arise, they could impair, potentially materially, the applicable Series' or an Asset-Backed Instrument's ability to consummate transactions or could cause the applicable Series or an Asset-Backed Instrument to enter into certain leveraged transactions on less attractive terms.

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The availability of debt facilities may be further limited following guidance issued to banks in March 2013 by the U.S. Federal Reserve (the "Federal Reserve"), the U.S. Office of the Comptroller of the Currency and the U.S. Federal Deposit Insurance Corp. relating to loans to highly leveraged companies and reported recent statements by the Federal Reserve and Office of the Comptroller of the Currency reaffirming their position on such loans. As such, there can be no guarantee that debt facilities will be available at commercially attractive rates when due for refinancing. If the applicable Series is unable to obtain favorable financing terms for its investments, refinance its indebtedness or maintain a desired or optimal amount of financial leverage for its acquisitions, such Series may hold a larger than expected equity interest in one or more Asset-Backed Instruments and may realize lower than expected returns from such Asset-Backed Instruments that would adversely affect such Series' ability to generate attractive returns for the Shareholders. Any failure by lenders to provide previously committed financing could also expose the applicable Series to potential claims by sellers of businesses which such Series may have been contracted to purchase.

***The Company is uncertain that the additional capital it will raise for future transactions will be sufficient since the availability of future capital is based on market conditions out of the Company's control. If it is not, the Company might have to raise additional capital at a price unfavorable to existing Shareholders.***

The Company expects to make additional acquisitions and fund obligations (subject to certain limitations) for, among other reasons, the funding of add-on acquisitions or other interests or repayment of indebtedness by the Company or a Portfolio Asset or other obligations, contingencies or liabilities, to satisfy working capital requirements or capital expenditures or in furtherance of the Company or a Portfolio Asset's or any of its subsidiaries' or affiliates' strategies. The amount of additional acquisitions needed will depend upon the maturity and objectives of the particular asset. Each such round of financing (whether from the Company or other Shareholders) could be intended to provide a Portfolio Asset with enough capital to reach the next major corporate milestone or for any other initiative, including to preserve, protect, enhance or optimize any existing asset. If the funds provided are not sufficient, such Portfolio Asset may have to raise additional capital at a price unfavorable to the existing Shareholders, including the Company.

The Company also may make additional debt and equity acquisitions in a Portfolio Asset for purposes of, for example, exercising its preemptive rights or warrants or options or converting convertible securities that were issued in connection with existing holdings in such Portfolio Asset in order to, among other things, preserve the Company's proportionate ownership when a subsequent equity or debt financing is planned, to protect the Company's interest when, for example, such Portfolio Asset's performance does not meet expectations, to preserve or enhance the value of an existing interest (including through add-on acquisitions or other investments) or in anticipation of disposition, refinancing, recapitalization or other transactions. The availability of capital is generally a function of capital market conditions that are beyond the control of the Company, and there can be no assurance that the Company will be able to predict accurately the future capital requirements necessary for success or whether or not additional funds will be needed or be available from the Company or any other financing source. For instance, the Company may be called upon to make additional contributions or have the opportunity to increase its interest in a Portfolio Asset. There can be no assurance that the Company will make additional contributions or that it will have sufficient funds or the ability to do so. Any decision by the Company not to make an additional contribution or its inability to make such a contribution may, in either case, have a substantial negative impact on a Portfolio Asset in need of such a contribution. Such decision or inability may also result in dilution of the Company's interest in a Joint Venture or a default in the Company's funding obligations under a Joint Venture agreement, which may cause a diminution of the Company's voting rights under the Joint Venture agreement or the exercise of remedies by any Joint Venture partner of the Company or may diminish the Company's ability to influence the Portfolio Asset's future development. The Operating Manager, in its discretion, will have the authority to determine if a contribution of capital to a Portfolio Asset (or to another issuer, including a successor of a Portfolio Asset) is an additional contribution, a bridge financing or other obligation of the Company and what entity or entities comprise the Portfolio Asset for this purpose, including for purposes of the LLC Agreement and the limitations set forth therein. The Operating Manager could be subject to conflicts of interest in making these decisions, or it could affect, among other things, the amount of capital available to acquire. Further, proceeds generated from a restructuring or similar transaction that are subsequently re-deployed are not expected to be subject to such limitations.

***The Company may face a breach of its cyber security, which could result in exposure of confidential information and adverse consequences to the Company's operations.***

The Operating Manager relies extensively on computer programs and systems (and may rely on new systems and technology in the future) for various purposes, including trading, clearing and settling transactions, evaluating certain acquisitions, monitoring its portfolio and net capital, processing Shareholder data and administration of the Company and generating risk management and other reports, all of which are critical to oversight of the Company's

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activities. Certain of the Company's and the Operating Manager's operations will be dependent upon systems operated by third parties, including prime brokers, administrators, depositaries, market counterparties and their sub-custodians and other Service Providers. The Service Providers, including any Affiliated Service Providers, may also depend on information technology systems, and, notwithstanding the diligence that the Company or the Operating Manager may perform on its Service Providers, the Company may not be in a position to verify the risks or reliability of such information technology systems.

The Company, the Operating Manager, the Portfolio Assets, their respective affiliates and their respective Service Providers are subject to risks associated with a breach in cybersecurity. Cybersecurity is a generic term used to describe the technology, processes and practices designed to protect networks, systems, computers, programs and data from both intentional cyber-attacks and hacking by other computer users, as well as unintentional damage or interruption that, in either case, can result in damage and disruption to hardware and software systems, loss or corruption of data and/or misappropriation of confidential information. For example, information and technology systems are vulnerable to damage or interruption from computer viruses, network failures, computer and telecommunication failures, infiltration by unauthorized persons and security breaches, usage errors by their respective professionals, power outages and catastrophic events such as fires, tornadoes, floods, hurricanes and earthquakes. Such damage or interruptions to information technology systems may cause losses to the Company, Shareholders or Portfolio Assets, without limitation, by interfering with the processing of transactions, affecting the Company's or a Portfolio Asset's ability to conduct valuations or impeding or sabotaging trading or operations.

The Company and its Portfolio Assets may incur substantial costs as the result of a cybersecurity breach, including those associated with forensic analysis of the origin and scope of the breach, payments made and costs incurred in connection with ransomware attacks, increased and upgraded cybersecurity, identity theft, unauthorized use of proprietary information, litigation, adverse Shareholder reaction, the dissemination of confidential and proprietary information and reputational damage. Any such breach could expose the Company and the Operating Manager (which in turn is generally entitled to indemnification by the Company) and the Portfolio Assets to civil liability as well as regulatory inquiry and/or action. Shareholders could also be exposed to losses resulting from unauthorized use of their personal information. Similar types of cybersecurity risks also are present for the Portfolio Assets which the Company acquires, which could affect their business and financial performance, resulting in material adverse consequences for such Portfolio Assets and other issuers and causing the Company's assets to lose value. In addition, there are increased risks relating to the Operating Manager's, Affiliated Services Providers' and the Portfolio Assets' reliance on their computer programs and systems when their personnel are required to work remotely for extended periods of time, including in connection with events such as the outbreak of infectious disease or other adverse public health developments or natural disasters, which risks include an increased risk of cyber-attacks and unauthorized access to their computer systems.

#### The Company's business may be affected by changes in technology.
The Company may be exposed to the risk that a change could occur in the way a service or product is delivered to the Portfolio Asset, rendering the existing technology obsolete. While the risk could be considered as low in the asset-based finance sector given the massive fixed costs involved in constructing assets and the fact that many asset-based finance technologies are well established, any technological change that occurs over the medium term could threaten the profitability of a Portfolio Asset. If such a change were to occur, these Portfolio Assets would have very few alternative uses should they become obsolete. In addition, new technology installed in a power plant may not work or may diminish the capacity, output and efficiency of the Portfolio Assets.

#### The Company's business, results of operations and financial condition may be adversely affected by the ongoing conflicts and crises.
Sustained uncertainty about, or worsening of, global geopolitical tensions, including further escalation of war between Russia and Ukraine or further escalation in the armed conflicts and tensions in the Middle East, could result in a global economic slowdown and long-term changes to global trade. Recently, various countries have experienced significant geopolitical conflicts, including civil wars, and the occurrence of new disturbances due to acts of war or terrorism or other political developments may occur. In addition, stable political, economic and other systems may experience periods of disruption or reversals of policy. Nationalization, expropriation, currency blockage, political, regulatory or social instability or uncertainty or diplomatic developments, including the imposition of sanctions, trade restrictions, or other similar measures, could adversely affect the Company's business, Portfolio Assets or results.

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Recent examples of conflicts and crises include the ongoing armed conflict between Russia and Ukraine and recent escalation of conflict in the Middle East. Most recently, on February 28, 2026, the United States and Israel launched a major assault on Iran with the stated aim of toppling the regime in Tehran, triggering regional Iranian retaliation across the Gulf, including attacks against targets in Qatar, the United Arab Emirates, Kuwait, Bahrain and Saudi Arabia. An escalation in this or other global conflicts may have a material adverse impact on the Company, its Portfolio Assets and the market generally, including as a result of intense regional and global military and/or economic retaliation, major maritime disruptions in the Strait of Hormuz, and large-scale cyber warfare.

The extent, duration and impact of these conflicts, related sanctions, trade restrictions, and retaliatory actions are difficult to ascertain, but could be significant and have severe adverse effects, including significant adverse effects on the regional or global economies and the markets for certain assets, securities, commodities, and currencies. Depending on the nature of current or future military conflicts, companies worldwide operating in many sectors, including energy, financial services, and defense may be impacted. These impacts could result in restricted or no access to certain assets, markets, investments, service providers or counterparties, negatively affecting the Company's business, Portfolio Assets or results. Increased volatility, currency fluctuations, liquidity constraints, counterparty default, valuation and settlement difficulties and operational risk resulting from such conflicts may also negatively impact the performance of the Company, Portfolio Assets or results.

In addition, one or more Shareholders could become subject to sanctions or similar restrictions, which could result in adverse consequences to such Shareholder(s) or the Company or its Portfolio Assets, including as it relates to the Company's ability to consummate acquisitions or a Portfolio Asset's ability to obtain financing. Military action by Russia in Ukraine has led to and may lead to additional sanctions and export control restrictions being levied by the U.S., European Union, UK, Canada, and other countries. These sanctions measures and trade restrictions may increase or alternatively be eased as part of peace negotiations or other diplomatic efforts. However, the Company may not be able to benefit from the easing of sanctions in all cases, depending on the nature and location of its investments or Portfolio Assets. Additionally, to the extent new sanctions, trade restrictions, or tariffs are imposed or previously relaxed sanctions, trade restrictions or tariffs are re-imposed, such actions may result in adverse impacts on the Company, its Portfolio Assets or investments.

Overall, the global situation remains uncertain and how events unfold or impact the Company's business, Portfolio Assets, or results of operations cannot be predicted. The potential further repercussions surrounding global or regional conflicts or crises are unknown and cannot be predicted, and no assurance can be given regarding the future of relations between countries.

Expanding geopolitical tensions and social unrest, and any resulting market disruptions could be significant and could potentially have a substantial impact on the global economy and the Company or its Portfolio Assets, including a material adverse effect on the Company's financial condition and results of operations.

Any or all of the above factors could have a material adverse effect on the Company's business, financial condition, results of operations and prospects.

#### The Company's acquisitions and assets are affected by the general economy and recent events, including market volatility, inflation and public health crises.
Pandemics and other widespread public health emergencies, including outbreaks of infectious diseases such as SARS, H1N1/09 flu, avian flu, Ebola and COVID-19, have resulted in market volatility and disruption, and future such emergencies have the potential to materially and adversely impact economic production and activity in ways that are impossible to predict, all of which may result in significant losses to the Company.

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The ultimate impact of public health emergencies on global economic conditions, and on the operations, financial condition and performance of any particular industry or business, is impossible to predict, although ongoing and potential additional materially adverse effects, including a further global or regional economic downturn (including a recession) of indeterminate duration and severity, are possible. In addition, the consumer industry is particularly susceptible to economic contraction, economic uncertainty or the perception of weak or weakening economic conditions, public health emergencies, and the associated impact on discretionary consumer spending on consumer goods. A recession, economic slowdown or any other significant economic condition affecting consumers or corporations caused by public health emergencies is expected to cause a reduction in consumer spending, and have the potential to adversely impact the Company's assets and performance. The extent of the impact of such public health emergencies will depend on many factors, including the ultimate duration and scope of the public health emergency and the restrictive countermeasures being undertaken, as well as the effectiveness of vaccines and governmental, legislative and financial and monetary policy interventions designed to mitigate the crisis and address its negative externalities; the extent of any related travel advisories and restrictions implemented (including any government-imposed quarantine measures and any voluntary and precautionary restrictions on travel or meetings) and the impact of such public health emergency on overall supply and demand, goods and services, investor and asset liquidity, credit markets, consumer confidence, recession and fears of recession, availability of consumer credit, consumer debt levels, consumer perceptions of personal well-being and security and levels of economic activity, all of which are evolving rapidly and may have unpredictable results. It is difficult to assess what the longer-term impacts of an extended period of unprecedented economic dislocation and disruption from a public health emergency would be on future macro- and micro-economic developments, the health of certain industries and businesses, and commercial and consumer behavior. The effects of public health emergencies are unpredictable and it is difficult to forecast their impact on the value and performance of the Company's assets, the Company's ability to source, make, manage and divest assets and the Company's ability to achieve its objectives, all of which could result in significant losses to the Company.

As indicated above, the extent of the impact on the Company and its assets' operational and financial performance will depend on many factors, all of which are highly uncertain and cannot be predicted, and this impact may include significant reductions in revenue and growth, unexpected operational losses and liabilities, impairments to credit quality and reductions in the availability of capital. These same factors have the potential to limit the ability of the Company to source, diligence and execute new capital allocation and to manage, finance and divest assets in the future, and governmental mitigation actions may constrain or alter existing financial, legal and regulatory frameworks in ways that are adverse to the strategy the Company intends to pursue, all of which could adversely affect the Company's ability to fulfill its objectives. They may also impair the ability of portfolio companies or their counterparties to perform their respective obligations under debt instruments and other commercial agreements (including their ability to pay obligations as they become due), potentially leading to defaults with uncertain consequences. In addition, the operations of the Company, its assets, and the Operating Manager may be significantly impacted, or even temporarily or permanently halted, as a result of government quarantine measures, restrictions on travel and movement, remote-working requirements and other factors related to a public health emergency, including its potential adverse impact on the health of any such entity's personnel. These measures may also hinder such entities' ability to conduct their affairs and activities as they normally would, including by impairing usual communication channels and methods, hampering the performance of administrative functions such as processing payments and invoices, and diminishing their ability to make accurate and timely projections of financial performance.

#### Force Majeure events may adversely affect the Company's Asset-Backed Instruments.
Asset-Backed Instruments or assets may be affected by force majeure events (*i.e.*, events beyond the control of the party claiming that the event has occurred, including, without limitation, acts of God, fire, flood, earthquakes, hurricanes, outbreaks of infectious disease, pandemic or any other serious public health concern, war, regional armed conflict, terrorism and labor strikes). Natural disasters, epidemics, pandemics and other acts of God, which are beyond the control of the Operating Manager, may negatively affect the economy, assets and livelihood of people throughout the world. For example, Southeast Asia and many countries in Asia, including China, Japan, Indonesia and Australia have been affected by earthquakes, floods, typhoons, drought, heat waves or forest fires. Disease outbreaks have occurred globally in the past (including severe acute respiratory syndrome, or SARS, avian flu, H1N1/09 flu and COVID-19), and any prolonged occurrence of infectious disease, or other adverse public health developments or natural disasters in any country related to the Company's assets may have a negative effect on the Company. Resulting catastrophic losses may either be uninsurable or insurable at such high rates as to make such coverage impracticable. If such a major uninsured loss were to occur with respect to any of the Company's assets, the Company could lose both deployed capital and anticipated profits.

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Some force majeure events may adversely affect the ability of a party (including an Asset-Backed Instrument or a counterparty to the Company or an Asset-Backed Instrument) to perform its obligations until it is able to remedy the force majeure event. In addition, the cost to an Asset-Backed Instrument or the Company of repairing or replacing damaged assets resulting from such force majeure event could be considerable. Certain force majeure events (such as war or an outbreak of an infectious disease) could have a broader negative impact on the world economy and international business activity generally, or in any of the countries in which the Company may operate specifically. Additionally, a major governmental intervention into industry, including the nationalization of an industry or the assertion of control over one or more Asset-Backed Instruments or its assets, could result in a loss to the Company, including if its position in such Asset-Backed Instrument is canceled, unwound or acquired (which could be without what the Company considers to be adequate compensation). Any of the foregoing may therefore adversely affect the performance of the Company and its assets.

***The effect of global climate change may impact the Company's business such as through increased operating and capital costs and reduced demand for the products and services of certain Asset-Backed Instruments.***

Climate change and related regulation could result in significantly increased operating and capital costs and could reduce demand for the products and service of certain platform entities. The Company may acquire assets that are located in areas which are subject to heightened physical risks associated with climate change and, as such, there may be significant physical effects of climate change that have the potential to have a material effect on the Company's business and operations. Physical impacts of climate change may include: increased storm frequency and severity of weather events (*e.g.*, floods or hurricanes); wildfires; sea level rise; and extreme temperatures. For example, many climate models indicate that global warming is likely to result in rising sea levels, high tide flooding, hurricanes and risk of increased frequency and severity of weather events, which may lead to higher insurance costs, or a decrease in available coverage, for Asset-Backed Instruments located in affected areas subject to severe weather. These climate-related changes could damage assets underlying Asset-Backed Instruments, especially assets located in low-lying areas near coasts and riverbanks, and facilities situated in hurricane-prone and rain-susceptible regions.

Moreover, the Company may be impacted by various climate-related transition risks, including increased focus by international, federal, state and local regulatory and legislative bodies, particularly in the EU and UK, on current and future laws, regulations, treaties or international agreements related to the emission of Greenhouse Gasses ("GHGs") such as methane and CO<sub>2 </sub>and energy policies and sustainability practices more generally that could increase the compliance costs of certain Portfolio Assets, including state actions to develop statewide or regional programs to reduce GHG emissions and energy costs. Proposed approaches to further regulate GHG emissions in several U.S. states include establishing GHG "cap and trade" programs, increased efficiency standards and incentives or mandates for pollution reduction, use of renewable energy sources or use of alternative fuels with lower carbon content. Adoption of any such laws or regulations could increase Asset-Backed Instruments' costs to operate and maintain assets and could require the installation of new emission controls, acquire allowances for GHG emissions, tax payments related to GHG emissions and the administration and management of a GHG emissions program. These more restrictive regulations could materially impact the revenues and expenses available to service the Asset-Backed Instruments.

Additionally, efforts to disclose GHG emissions and climate-related financial risks through environmental sustainability legislation and regulation, or non-binding standards or accords, is an increased focus of global, national, regional and state regulators. The Company's operations may be subject to regulations in the U.S. and abroad that would require the Company to disclose certain information, such as GHG emissions and climate-related financial risks. Future costs to comply with such regulations are likely to increase the Company's Operating Expenses over time.

As a result of physical impacts from climate-related events, the Company may be vulnerable to the following: risks of damage to the Company's assets; indirect financial and operational impacts from disruptions to the operations of the Company's assets due to severe weather or other unforeseen climate-related events; increased insurance premiums and deductibles or a decrease in the availability of coverage for Asset-Backed Instruments in areas subject to severe weather events; increased insurance claims and liabilities; increase in energy cost impacting operational returns; changes in the availability or quality of water or other natural resources on which businesses assets' depend; decreased consumer demand for relevant products or services resulting from physical changes associated with climate change; incorrect long-term valuation of an equity asset due to changing conditions not previously anticipated at the time of the acquisition; and economic disturbances arising from the foregoing.

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#### The burden of complying with conflicting laws may have an adverse impact on the operations of the Company.
Investment in non-U.S. securities involves considerations and possible risks not typically involved with investment in the securities of U.S. issuers, including changes in applicable laws, changes in governmental administration or economic or monetary policy (in the United States or elsewhere) or changed circumstances in dealings between nations. The application of non-U.S. tax laws (*e.g.*, the imposition of withholding taxes on dividend or interest payments) may also affect investment in non-U.S. securities. Higher expenses may result from investment in non-U.S. securities than would result from investment in U.S. securities because of the costs that must be incurred in connection with conversions between various currencies and non-U.S. brokerage commissions that may be higher than in the United States. Non-U.S. securities markets also may be less liquid and more volatile.

Laws affecting international investment and business continue to evolve, although at times in an uncertain manner that may not coincide with local or accepted international practices. Laws and regulations, particularly those concerning foreign investment, insurance and taxation, can change quickly and unpredictably. Inconsistencies and discrepancies among the vast number of local, regional and national laws, the lack of judicial or legislative guidance on unclear or conflicting laws and broad discretion on the part of government authorities implementing the laws produce additional legal uncertainties. The burden of complying with conflicting laws may have an adverse impact on the operations of the Company.

#### Tax Risks Related to the Company, the Shares and the Company's Portfolio Assets

#### The Company's acquisition decisions will be based on economic considerations which could result in adverse tax consequences.
An investment in the Company involves complex U.S. and non-U.S. tax considerations that will differ for each Shareholder depending on the Shareholder's particular circumstances and whether an investment is made through Series I or Series II. The recommendations of the Operating Manager to the Company will be based primarily upon economic, not tax, considerations, and could result, from time to time, in adverse tax consequences to some or all Shareholders. In addition, the Company's Shareholder base is expected to be diverse, such that the tax considerations relevant to each individual Shareholder may differ from those of other Shareholders, and the tax considerations relevant to the Shareholders may be different from those relevant to the Operating Manager. There can be no assurance that the structure or tax position of the Company or of any Portfolio Asset (or the Company's investment therein) will be tax-efficient for any particular shareholder, for the Series I Shareholders as a whole, or for the Series II Shareholders as a whole. It is likely that Series II Shareholders and Series I Shareholders will have different tax burdens.

#### Shareholders may be subject to taxes on phantom income.
The Company may make certain acquisitions, such as acquisitions in original issue discount obligations, credit acquisitions with an equity component, obligations with payment-in-kind features, preferred stock with redemption or repayment premiums or investments in vehicles that are treated as transparent or flow-through with respect to such Shareholder, which, under the tax law of a Shareholder's jurisdiction of residence or domicile, could give rise to taxable income to the Shareholder without such Shareholder receiving any cash (or receiving cash that is reinvested pursuant to the DRIP). For U.S. Shareholders investing through Series II, such income may also arise as a result of the Company's acquisitions in equity of certain non-U.S. entities treated as corporations for U.S. federal income tax purposes (*e.g.*, if such entity is treated as a "controlled foreign corporation" or "passive foreign investment company" for U.S. federal income tax purposes). In such cases, taxable income allocated to a Shareholder may exceed cash distributions, if any, made to such Shareholder, in which case such Shareholder would have to satisfy tax liabilities arising from an investment in this Company from other assets of such Shareholder.

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***The Company faces the risk of owning SPVs in a manner that is not fully tax efficient because certain jurisdictional rules or other factors may limit its ability to hold SPVs in the most tax efficient manner.***

The Company holds and expects to continue to hold certain of its Portfolio Assets through wholly or partially owned SPVs. When possible, the Company will seek to structure acquisitions through SPVs in a tax efficient manner so as to be exempt from, or reduce income and withholding taxes in a particular SPV's jurisdiction of formation or incorporation and any other jurisdictions in which the SPV operates, as well as withholding taxes or capital gains taxes arising in, or on payments from, the jurisdictions of the Company's assets or activities. However, there is no guarantee that such benefits will be available, and, in some cases, the availability of these benefits may be subject to subsequent challenge and clawback. In some cases, certain procedural formalities may need to be completed before payments in respect of Portfolio Assets can be made free of withholding tax. The completion of such formalities may depend on the agreement of taxation authorities or the provision of certain information by Shareholders, the timing of which cannot be guaranteed. The implementation of the structures described above could also give rise to additional Company expenses, which would be borne by the Shareholders, and any withholding tax, non-resident capital gains tax or income tax imposed by the jurisdiction in which the SPV is formed or in which the asset is based or operates could reduce returns realized by the Shareholders.

***If Series II were to be treated as a corporation for U.S. federal income tax purposes, the value of the Company's Series II Shares might be adversely affected.***

The value of the Company's Series II Shares to Shareholders will depend in part on the treatment of Series II as a partnership for U.S. federal income tax purposes. However, in order for Series II to be treated as a partnership for U.S. federal income tax purposes, under present law, 90% or more of Series II's gross income for every taxable year must consist of "qualifying income," as defined in Section 7704 of the Code and Series II must not be required to register under the Investment Company Act, or another exception to the "publicly traded partnership" rules must apply. Although Series II seeks to continue to operate in a manner such that it will meet the 90% test described above in each taxable year, Series II may not meet such requirement, or current law may change so as to cause, in either event, Series II to be treated as a corporation for U.S. federal income tax purposes. If Series II were treated as a corporation for U.S. federal income tax purposes, adverse U.S. federal income tax consequences could result for the Shareholders and Series II.

***Series II and its corporate subsidiaries face the risk of a tax audit which may have adverse consequences for Series II and/or the Series II Shareholders.***

Series II may take positions with respect to certain tax issues, including with respect to partnership allocations, that depend on legal and other interpretive conclusions. Should any such positions be successfully challenged by the IRS or any other tax authority, a Series II Shareholder might be found to have a different U.S. tax liability (or any tax liability under the law of another jurisdiction), for that year than that reported on its federal (or other) income tax return.

An audit of Series II may result in an audit of the returns of some or all of the Series II Shareholders, which examination could result in adjustments to the tax consequences initially reported by Series II and affect items not related to a Shareholder's investment in Series II. If such adjustments result in an increase in a Shareholder's federal income tax liability for any year, such Shareholder may also be liable for interest and penalties with respect to the amount of underpayment. The legal and accounting costs incurred in connection with any audit of Series II's tax return will be borne by Series II. The cost of any audit of a Shareholder's tax return will be borne solely by the Shareholder.

Pursuant to legislation governing U.S. tax audits enacted by the U.S. Congress in 2015, as subsequently amended, the regulations promulgated and the guidance issued thereunder, and similar state or local tax rules (collectively, the "BBA Rules"), unless Series II makes the election described below, the IRS is generally permitted to determine adjustments to Series II tax items, and assess and collect taxes attributable thereto (including any applicable penalties and interest), at Series II level in the tax year during which the audit is finalized (the "adjustment year"). In this case, Shareholders of Series II in the adjustment year, rather than the persons that were Shareholders during Series II tax year under audit (the "reviewed year"), would bear the cost of the audit adjustment. In general, under this regime, taxes imposed on Series II would be assessed at the highest rate of tax applicable for the reviewed year and determined without regard to the character of the income or gain, Shareholders' status or the benefit of

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Shareholder-level tax attributes (that could otherwise reduce tax due). However, Series II may be able to reduce the underpayment of taxes owed by Series II, to the extent that Series II demonstrates such taxes are allocable to a Shareholder that would not owe any tax by reason of its status as a "tax-exempt entity" or if the character of income is subject to a lower rate of tax.

Series II may under certain circumstances have the ability to avoid the entity-level tax assessment or collection (described above), by electing to "push-out" any adjustments to persons that were Shareholders during the reviewed year (the "Push-out Election") and issuing them adjusted Schedule K-1s. If Series II makes the Push-out Election, such Shareholders would be responsible for paying any taxes associated with the audit adjustments in the adjustment year (including interest and penalties). In such case, the Shareholders of the reviewed year would also incur a two-percentage point increase on the interest rate that would otherwise have been imposed on any underpayment of taxes (unless such Shareholder is a pass-through entity and makes a valid Push-out Election to "push out" its share of the adjustments to its shareholders, members or owners). If Series II makes a Push-out Election with respect to Shareholders or former Shareholders whose allocable Shares of adjustments would have been subject to U.S. federal withholding tax, such Shareholders or former Shareholders may be required to file a U.S. federal income tax return and pay their allocable Shares of interest, penalties and additions to tax even though Series II is required to pay the withholding tax. The Operating Manager has discretion whether or not to make the Push-out Election and has not yet determined whether or to what extent such election will be appropriate. The Operating Manager or the person the Operating Manager appoints will be the "partnership representative" for purposes of the BBA Rules and will have broad authority to represent Series II in respect of tax audits, including the authority to make the Push-out Election.

Certain of the Company's Portfolio Assets, such as Portfolio Assets that are operating partnerships, will be subject to the rules described above, in which case the BBA Rules would be expected to apply to the Company as a partner therein. The Company may also make acquisitions through tiered partnership structures (including as a minority partner), in which case its capacity to make a "push out" election in respect of such tiered partnership investment may be limited by the timing of information provided by the underlying Portfolio Assets or decisions by the underlying Portfolio Assets that the Company may not have control over.

In addition, Series II "blocker" vehicles taxable as corporations for U.S. federal income tax purposes are subject to the examination of their income and other tax returns by the IRS and other authorities.

#### Series I faces the risk of a tax audit which may have adverse consequences for Series I and/or the Series I Shareholders.
Series I is subject to the examination of its income and other tax returns by the IRS and other tax authorities. Series I regularly assesses the likelihood of adverse outcomes resulting from such examinations to determine the adequacy of the Company's provision for income taxes. Although Series I seeks to continue to make appropriate provisions for taxes in the jurisdictions in which it operates, changes in the tax laws or challenges from tax authorities under existing laws could adversely affect Series I's business, financial condition and results of operations.

In addition, certain of the Company's Portfolio Assets, such as Portfolio Assets that are operating partnerships, will be subject to the rules described above under "—*Series II and its corporate subsidiaries face the risk of a tax audit which may have adverse consequences for Series II and/or the Series II Shareholders*," in which case the BBA Rules would be expected to apply to the Company as a partner therein. The Company may also acquire through tiered partnership structures (including as a minority partner), in which case its capacity to cause a "push out" election to be made in respect of such tiered partnership investment may be limited by the timing of information provided by the underlying Portfolio Asset or decisions by the underlying Portfolio Asset that the Company may not have control over.

***There is no assurance that Schedules K-1 will be provided within a particular time-frame to Series II Shareholders and any such Schedule K-1 may be based on the best available estimates at the time of issuance.***

The Operating Manager will endeavor to provide Series II Shareholders with estimates of the taxable income or loss computed for U.S. tax purposes allocated to them in connection with their investment in Series II within 90 calendar days of the end of the fiscal year. However, while delays are not expected, there is no assurance that such estimates or final Schedules K-1s will ultimately be provided within the applicable time frame, given, among other

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things, evolving reporting and compliance requirements or other events, and final statements, including Schedules K-1s, may not be available until after the completion of Series II's annual audit. Neither the Company nor the Operating Manager will be liable for any failure to provide or delay in providing such final Schedules K-1s. Series II Shareholders may be required to obtain extensions of the filing date for their income tax returns at the U.S. federal, state and local levels (and, to the extent applicable, any non-U.S. income tax returns).

#### Increases to the corporate tax rate would likely decrease the Company's returns.
Any increase in the corporate income tax rate or changes to the corporate income tax rules that have the effect of increasing the effective corporate income tax rate would likely result in an increase of the overall tax burden borne by Series I and any Series II "blocker" vehicles taxable as corporations for U.S. federal income tax purposes and, as a result, such changes could materially affect the Company's returns. In addition, the value of the Company's assets may be affected by any changes in tax rates or tax rules, and Shareholders that redeem will not benefit from any such changes after their redemption, and conversely, Shareholders that do not redeem may be burdened by the impact of any such changes, including with respect to the impact of any such changes on the portion of any asset attributable to redeemed Shareholders. See the discussion under the heading "—*Valuations of the Company's assets are estimates of fair value and may not necessarily correspond to realizable value*."

#### The IRS might not agree with the Company's assessment regarding the treatment of Special Fees.
Series II intends to take the position that the reduction of the Management Fee for Special Fees received by the Operating Manager or its affiliates should not cause Series II or its Shareholders to be treated as being engaged in a U.S. trade or business, but there is a risk that the IRS might take the position that tax-exempt and Non-U.S. Series II Shareholders should be treated as having received a portion of such Special Fees and, if such fees were regularly received by Series II, that a tax-exempt or Non-U.S. Series II Shareholder's allocable share of such fees should be treated as UBTI or ECI, as applicable. Additionally, if such Special Fees are treated as being received directly by Series II, such fees would not be qualifying income for purposes of the Qualifying Income Exception from the publicly traded partnership rules, and as a result, Series II may not qualify for the Qualifying Income Exception in which case, unless another exception applied, Series II would likely be subject to taxation as a corporation for U.S. federal income tax purposes, and such treatment would materially adversely affect the value of the Series II Shares.

#### Non-U.S. Shareholders may be subject to U.S. federal income tax with respect to the gain on disposition of their Shares.
The Company believes it is possible that Series I may become a "United States real property holding corporation" and/or Series II may hold interests in a "United States real property interest," each as defined in the Code and applicable Treasury regulations. As a result, Non-U.S. Series I Shareholders may be subject to United States federal income tax on a sale, exchange or other disposition of the Series I Investor Shares and may be required to file a United States federal income tax return, and Non-U.S. Series II Shareholders may be subject to federal income tax and withholding tax on a sale, exchange or other disposition of the Company's Series II Shares pursuant to Section 1445 of the Code. See "—*Certain United States Federal Income Tax Considerations—Series I —Gain on Disposition of Series I Shares*" and "—*Certain United States Federal Income Tax Considerations—Series II—Consequences to Non-U.S. Series II Shareholders*."

***If the Company is required to register as an investment company under the Investment Company Act, Series II may be treated as a publicly traded partnership that is subject to corporate income taxes.***

If Series II were deemed to be an investment company under the Investment Company Act, the Qualifying Income Exception to the publicly traded partnership rules would no longer apply, and in that case, unless another exception applied, Series II would likely be subject to taxation as a corporation for U.S. federal income tax purposes, and such treatment would materially adversely affect the value of the Series II Shares.

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#### Transfers of Interests are subject to certain restrictions.
Transfer of interests is prohibited if such transfer would, among other things, result in the termination of Series II's status as a partnership, or cause Series II to be treated as a "publicly traded partnership" taxable as a corporation, for U.S. federal or state income tax purposes.

#### The Company's business may be affected by changes to tax regimes.
The Company and/or the Shareholders could become subject to additional or unforeseen taxation in jurisdictions in which the Company operates. Changes to taxation treaties (or their interpretation) between the countries relevant for the Company's assets may adversely affect the Company's ability to efficiently realize income or capital gains. Tax laws of different jurisdictions vary substantially with respect to the treatment of specific items of income, gain, loss, deduction and credit, and with respect to the bases on which such tax is or may be assessed. The Company expects to acquire a substantial amount of capital in the U.S. and non-U.S. jurisdictions and the impact of tax laws in the relevant jurisdictions in respect of any particular asset, or on any specific Portfolio Assets, may be material. For example, interest payments on Company holdings in certain jurisdictions and certain other items of income may be subject to withholding taxes or non-resident capital gains taxes, and in some cases, the withholding taxes or non-resident capital gains taxes may be greater than if such Company holdings were held directly by the Shareholders.

In addition, tax laws, including their interpretation, are subject to change, and the Company cannot predict what effect such changes might have on the Company and/or Shareholders. The Company and/or the Shareholders could become subject to additional or unforeseen taxation in jurisdictions in which the Company operates, and local tax incurred in these jurisdictions by the Company vehicles may not be creditable or deductible to Shareholders in their jurisdiction of residence. There can also be no assurance that U.S. tax credits (or credits in any non-U.S. jurisdiction) may be claimed with respect to non-U.S. taxes incurred, including in respect of the withholding taxes described above. Shareholders wishing to claim the benefit of an applicable tax treaty may be required to submit information to tax authorities in such jurisdictions. Further, changes to taxation treaties (or their interpretation) between the United States and the countries in which the Company operates may adversely affect the Company's ability to efficiently realize income or capital gains, which may result in additional taxation to Company vehicles used to facilitate investments in such non-U.S. jurisdictions or to the Shareholders.

The OECD and other government agencies in other jurisdictions have continued to recommend and implement changes related to the taxation of multinational companies. In particular, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting ("OECD IF") has committed to a proposal that allocates a formulaic share of the consolidated profit of a multinational enterprise to jurisdictions where their consumers are located (*i.e.*, where sales arise) resulting in additional tax in such jurisdictions ("Pillar 1"). The OECD IF also announced an agreement among 138 countries (as of December 16, 2022), including all G7 and G20 countries, on the key principles with respect to the introduction of a corporate global minimum tax rate of 15% (assessed on a jurisdiction-by-jurisdiction basis) with a target of such proposal being effective domestically during 2023 ("Pillar 2"). On December 20, 2021, the Inclusive Framework released model rules on Pillar 2 ("Pillar 2 Rules"), and later commentary and administrative guidance. On December 15, 2022, the EU Council adopted a Council Directive to implement the Pillar 2 Rules in member states of the European Economic Area ("Member States"). Depending on how countries amend their tax laws to adopt all or part of the Pillar 2 Rules (and, when finalized, measures from Pillar 1), there may be an increase in tax uncertainty and an increase in taxes applicable to the Company, Shareholders or Portfolio Assets. The Company cannot predict whether the U.S. Congress or any other legislative body will enact new tax legislation (including increases to tax rates), whether the IRS or any other tax authority will issue new regulations or other guidance, whether the OECD or any other intergovernmental organization will publish any guidelines on global taxation, whether Member States will implement such guidelines and to which degree, nor can it predict what effect such legislation, regulations or international guidelines might have, including any potential impact on global markets. There can be no assurance that new legislation or regulations, including changes to existing laws and regulations, will not have an adverse effect on the Company's performance.

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On October 5, 2015, the OECD published 13 final reports and an explanatory statement outlining consensus actions under the Base Erosion and Profit Shifting ("BEPS") project. This project involves a coordinated multijurisdictional approach to increase transparency and exchange of information in tax matters, and to address weaknesses of the international tax system that create opportunities for BEPS by multinational companies. The reports cover measures such as new minimum standards, the revision of existing standards, common approaches which will facilitate the convergence of national practices and guidance drawing on best practices. The outcome of the BEPS project, including limiting interest deductibility, changes in transfer pricing, new rules around hybrid instruments or entities and loss of eligibility for benefits of double tax treaties could increase tax uncertainty and impact the tax treatment of the Company's earnings. This may adversely impact the returns of the Company or limit future opportunities due to potential tax leakage.

Implementation into domestic legislation has not been uniform across the participating states.

On November 24, 2016, the OECD published the text of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, which is intended to expedite the interaction of the tax treaty changes of the BEPS project. Several of the proposed measures, including measures covering treaty abuse, the deductibility of interest expense, local nexus requirements, transfer pricing and hybrid mismatch arrangements are potentially relevant to the Company and could have an adverse tax impact on the Company, Shareholders and/or Portfolio Assets. On June 7, 2017, the first wave of countries (68 in total) participated in the signing ceremony of the multilateral instrument ("MLI"). The MLI went into effect on July 1, 2018 with the intention to override and complement certain provisions in existing bilateral tax treaties. The MLI may not have immediate effect but, rather, when it applies will depend on a number of factors, including further steps required to ratify changes to treaties according to the local law of the signatory countries. There is a lack of certainty as to how the signatories will apply the MLI and from when. The ratification process of Luxembourg has been achieved through the law of March 7, 2019 and the deposit of the instrument of ratification with the OECD on April 9, 2019. As a consequence, the MLI entered into force on August 1, 2019. Its application per double tax treaty concluded with Luxembourg will depend on the ratification by the other contracting state and on the type of tax concerned. There are some countries that have not yet signed including the United States and Brazil. Significant uncertainty remains around the access to tax treaties for the Company's assets holding structures, which could create situations of double taxation and adversely impact the returns of the Company.

The OECD is continuing with the BEPS project with additional proposals. These approaches go beyond the original measures from the 2015 reports and may have the effect of changing the way that the tax base for the Company and its Portfolio Assets are established. The impact for financial services businesses is currently unclear. To the extent that the Operating Manager determines in its sole discretion that additional taxes imposed on the Company, intermediate entities or Portfolio Assets are properly attributable to a Shareholder or group of Shareholders, including as a result of a hybrid mismatch/non-inclusion (because of the tax classification of the entities or instruments in a Shareholder's local jurisdiction) or a Shareholder's failure to provide requested information (which may support compliance with the rules described in the foregoing), such taxes may be deemed distributed to or otherwise allocated to such Shareholder or group of Shareholders pursuant to the terms of the LLC Agreement.

In December 2017, an EU list of non-cooperative tax jurisdictions was agreed by the finance ministers of Member States. The EU's list is intended to promote good governance in taxation worldwide, maximizing efforts to prevent tax avoidance, tax fraud and tax evasion. If a jurisdiction in which the Company directly or indirectly invests or receives payments from, is considered as non-cooperative tax jurisdiction (at the time the investment is made or at a later stage), this may result in adverse tax consequences for the Company and/or Shareholders. The list is regularly updated and was (last revised on February 14, 2023).

The Business in Europe: Framework for Income Taxation ("BEFIT") is a European Commission proposal for a directive to produce a comprehensive solution for business taxation in the EU. BEFIT aims to introduce a common set of rules for EU companies to calculate their taxable base while ensuring a more effective allocation of profits between EU countries. BEFIT has the potential to alter taxing rights with the EU, and may include substantive changes to applicable tax rules (including, for example, the debt-equity bias reduction allowance proposal, which would, if adopted, introduce both a tax allowance on increases in company equity and a limitation of the tax deductibility of interest payments). Consultation of BEFIT concluded in January 2023, it is expected that the European Commission will decide whether to adopt BEFIT in the third quarter of 2023. Whether this proposal will be taken forward, and if so the details and timing of its implementation, is therefore uncertain.

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***ATAD I-III, DAC6 and the UK MDR Regime may place additional administrative burdens on the Operating Manager's management team or portfolio investment management and ultimately could lead to increased cost, which could adversely affect profitability.***

The European Council has adopted two Anti-Tax Avoidance Directives, Council Directive (EU) 2016/1164 of July 12, 2016 laying down rules against tax avoidance practices that directly affect the functioning of the internal market ("ATAD I") and Directive 2017/952/EU of May 29, 2017, amending ATAD I as regards to hybrid mismatches with third countries ("ATAD II"). The measures included in ATAD I and ATAD II were implemented into Luxembourg law on, respectively, December 21, 2018, and December 20, 2019, and all of them are applicable gradually since January 1, 2019, January 1, 2020 or January 1, 2022, depending on the measure. ATAD I and ATAD II may place additional administrative burdens on the Operating Manager's management team or portfolio investment management to assess the impact of such rules on the assets of the Company and ultimately could lead to increased cost, which could adversely affect profitability. ATAD I and ATAD II may also impact the returns of the Company.

On January 17, 2023, the European Parliament approved a proposal for a further anti-tax avoidance directive laying down rules to prevent the misuse of shell entities for tax purposes within the EU U ("ATAD III"). The final text will need to be approved by the Council of the European Union. The rules contained in ATAD III aim to target EU entities mainly involved in cross-border activities, having predominantly passive income flows and outsourcing the administration of day-to-day operations and the decision-making on significant functions. ATAD III could result in additional reporting and disclosure obligations that may result in the denial of certain EU Directives and tax treaty benefits on EU entities not meeting certain minimum substance criteria (the so-called "shell entities"). ATAD III is a proposal still subject to the unanimous consent of the Member States and, to the extent it is passed in its current form, will only become effective after the national transposition by the Member States and may be subject to certain exemptions incorporated in its provisions.

The EU has taken further steps towards tax transparency with the sixth version of the EU Directive on administration and cooperation for implementation by Member States ("DAC6 Rules"). In addition, the UK repealed DAC6 and implemented reporting rules following the OECD Mandatory Disclosure Rules ("UK MDR Rules"). DAC6 Rules and UK MDR Rules could require taxpayers and their advisers to report on cross-border arrangements with an EU or UK component that bear one of the prescribed hallmarks. The hallmarks are widely drafted and may require many transactions to be reported. Failure to comply with disclosure obligations can result in fines and penalties. DAC6 Rules or UK MDR Rules could expose the Company's business activities to increased scrutiny from European or UK tax authorities.

#### Risks Related to Regulatory Matters
***The Company has certain reporting obligations not applicable to private companies. The Company needs to make significant capital expenditures to be in compliance with certain regulations not applicable to private companies. Failure to comply with such regulations may have an adverse effect on the Company's business.***

The Company is subject to regulations not applicable to private companies, such as provisions of the Sarbanes-Oxley Act. Efforts to comply with such regulations involves significant expenditures, and non-compliance with such regulations may adversely affect the Company.

The Company is subject to the Sarbanes-Oxley Act, and the related rules and regulations promulgated by the SEC. The Company is required to report on its internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act by the time the Company files its second annual report on Form 10-K. The Company is required to review on an annual basis its internal control over financial reporting, and on a quarterly and annual basis to evaluate and disclose changes in its internal control over financial reporting. As a new company, developing and maintaining an effective system of internal controls may require significant expenditures, which may negatively impact the Company's financial performance and its ability to make distributions. This process also will result in a diversion of Company management's time and attention. The Company cannot be certain of when its evaluation, testing and remediation actions will be completed or the impact of the same on its operations. In addition, the Company may be unable to ensure that the process is effective or that its internal controls over financial reporting are or will be effective in a timely manner. In the event that the Company is unable to develop or maintain an effective system of internal controls and maintain or achieve compliance with the Sarbanes-Oxley Act and related rules, the Company may be adversely affected.

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The Company's independent registered public accounting firm is not required to formally attest to the effectiveness of the Company's internal control over financial reporting for so long as the Company remains an "emerging growth company." Even if the Company no longer qualify as an "emerging growth company," the Company's independent registered public accounting firm will not be required to formally attest to the effectiveness of the Company's internal control over financial reporting until there is a public market for the Shares, which is not expected to occur.

In addition, the Company has elected to avail ourselves of the extended transition period for complying with new or revised accounting standards available for "emerging growth companies" and, therefore, the Company is not subject to the same new or revised accounting standards as other public companies that are not emerging growth companies. As a result, the Company's financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates and may result in less investor confidence. In this Annual Report, the Company has not included all of the executive compensation-related information that would be required if it was not an emerging growth company.

#### The Company faces the risk that the Operating Manager or any affiliated entities may experience a compliance failure, which would adversely affect the Company.
PIMCO and certain of its affiliates, including the Operating Manager, are regulated entities, and any compliance failures or other inappropriate behavior by them may have a material and/or adverse effect on the Company. The provision of investment management services is regulated in most relevant jurisdictions, and the Operating Manager (and PIMCO generally) must maintain its regulatory authorizations to continue to be involved both in the management of the Company's assets and to continue PIMCO's businesses generally. The Operating Manager's ability to source and execute transactions for the Company, and investor sentiment with respect to the Company, may be adversely affected by negative publicity arising from any regulatory compliance failures or other inappropriate behavior by any PIMCO affiliate or its investment professionals.

#### The Company faces the risk that the legal and regulatory fields will change in a manner which adversely affects the Company.
Legal and regulatory changes could occur during the Company's term that may adversely affect the Company or its assets. There has been, and it is possible that there will be, further involvement of governmental and regulatory authorities in financial markets around the world. See "*—While the Company believes neither Series is or will be an investment company under the Investment Company Act, the Company cannot guarantee it will always be able to maintain its intended status under the Investment Company Act.*" above. For example, the Company expects to make acquisitions in a number of different industries, some of which are or may become subject to regulation by one or more governmental agencies or authorities. New and existing regulations, changing regulatory requirements and the burdens of regulatory compliance all may have an adverse effect on the performance of Portfolio Assets that operate in these industries.

The Company and the Operating Manager cannot predict whether new legislation or regulation (including new tax measures) will be enacted by legislative bodies or governmental agencies, nor can either of them predict what effect such legislation or regulation might have. There can be no assurance that new legislation or regulation, including changes to existing laws and regulations, will not have an adverse effect on the Company's business performance.

***The Company, the Operating Manager and its affiliates are subject to the FCPA and other anti-bribery laws, which can result in significant civil and criminal penalties and may prevent certain acquisitions.***

PIMCO's professionals, the Operating Manager, the Company, its Portfolio Assets and their respective affiliates are subject to the U.S. Foreign Corrupt Practices Act of 1977 (as amended from time to time, the "FCPA") and other anti-corruption, anti-bribery, anti-boycott and other similar and/or relevant laws and regulations that apply to the Company in connection with its acquisition opportunities throughout the U.K., the EU and other jurisdictions in which the Company may acquire from time to time.

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In recent years, the U.S. Department of Justice and the SEC have devoted significant resources to enforcement of the FCPA and penalty amounts in FCPA cases have risen dramatically. In addition, the U.K. has significantly expanded the reach of its anti-bribery laws and other countries have become active in these areas of enforcement, especially with respect to anti-corruption. While PIMCO has developed and implemented policies and procedures designed to ensure strict compliance by PIMCO and its personnel with the FCPA, such policies and procedures may not be effective to prevent violations in all instances. In addition, in spite of PIMCO's policies and procedures, affiliates of Portfolio Assets, particularly in cases where the Company or another PIMCO Client does not control such Portfolio Assets, may engage in activities that could result in anti-corruption violations. Any determination that the Company or PIMCO has violated the FCPA, or other applicable anti-corruption laws or anti-bribery laws, could subject it to, among other things, civil and criminal penalties, material fines, profit disgorgement, injunctions on future conduct, securities litigation, problems with lenders and a general loss of Shareholder confidence, any one of which could adversely affect the Company's and PIMCO's business prospects and/or financial position, as well as the Company's ability to achieve its objective and/or conduct its operations. Some applicable anti-corruption laws, including the portions of the FCPA that apply to U.S. issuers, affirmatively require companies to make and keep accurate and reasonably detailed books and records and to maintain adequate policies, procedures and internal controls to, among other things, prevent bribery and provide reasonable assurances that transactions are made with appropriate management authorization. These requirements may impose an added compliance cost which could affect the Company's, PIMCO's or Portfolio Assets' financial prospects. Additionally, such laws and regulations may make it difficult in certain circumstances for the Company to act successfully on opportunities and for such Portfolio Assets to obtain or retain business as some business competitors may not adhere to applicable anti-corruption laws.

***Federal, state and foreign anti-money laundering, economic sanctions, and trade control laws and regulations, applicable to us and our Portfolio Assets may create the potential for liabilities and penalties, the inability to complete transactions, imposition of significant costs and burdens, and reputational harm.***

We are, or may in the future be, subject to anti-money laundering ("AML"), economic sanctions, and trade control laws and regulations administered by the Treasury's Financial Crimes Enforcement Network ("FinCEN") and Office of Foreign Assets Control ("OFAC"), U.S. Department of State, and U.S. Department of Commerce, and similar laws and regulations administered by other U.S. and non-U.S. governmental authorities. FinCEN has proposed other rules and regulations which, if and when they go into effect, may impose additional AML regulatory obligations on us or our affiliates, potentially increasing the cost of our operations.

These laws and regulations may implicate a number of aspects of our business, including servicing existing investors, finding new investors and sourcing the acquisition of new Portfolio Assets, as well as activities by our Portfolio Assets. Some of these regulations provide that penalties can be imposed on us for the conduct of a portfolio company, even if we have not ourselves violated any regulation. Further, anti-money laundering, economic sanctions, or trade control laws and regulations enforced in non-U.S. jurisdictions, such as EU sanctions and blocking statutes, may impose stricter or more onerous requirements than those imposed by U.S. regulatory authorities and may disrupt our business or cause us to incur costs to comply with those laws. Moreover, different AML, economic sanctions and trade control laws and regulations may also contain conflicting provisions, making compliance with all laws more difficult.

The Iran Threat Reduction and Syrian Human Rights Act of 2012 expanded the scope of U.S. sanctions against Iran and requires public reporting companies to disclose in their annual or quarterly reports certain dealings or transactions the company or its affiliates "knowingly" engaged in during the previous reporting period involving Iran or other individuals and entities targeted by certain OFAC sanctions. Disclosure of such activity, even if such activity is not subject to sanctions under applicable law, and any sanctions actually imposed on PIMCO, the Company, its Portfolio Assets or their respective affiliates as a result of these activities, could harm our reputation and have a negative impact on our business.

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The U.S. government has implemented and expanded a number of economic and trade sanctions programs and export controls that target Chinese entities and nationals on national security grounds and has imposed restrictions on acquiring and retaining interests in the securities of certain Chinese entities. In return, China has issued rules and laws to counteract the impact of foreign sanctions on Chinese persons including by the imposition of countermeasures such that a company that complies with U.S. sanctions against a Chinese entity may face penalties in China. China has also instituted tariffs on certain U.S. goods and may impose additional tariffs on U.S. products in the future.

The DOJ's final rule on Preventing Access to Americans' Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern (or, the "Bulk Data Rule") took effect in April 2025. The Bulk Data Rule prohibits or restricts U.S. persons from knowingly directing or engaging in defined classes of transactions that allow persons in countries of concern (which currently include China, Hong Kong, Macau, Cuba, Iran, North Korea, Russia, and Venezuela) or those otherwise deemed a "covered person" access to enumerated categories of sensitive data, specifically bulk U.S. sensitive personal data and U.S. government-related data.

These and other U.S. and non-U.S. AML, economic sanctions, and trade control laws and regulations create the potential for significant liabilities and penalties and other harms, any of which could materially and adversely affect our business, results of operations, and financial condition. U.S. and non-U.S. governments have the authority to impose a variety of actions arising from these laws and regulations that could limit our ability to find suitable portfolio companies, cause delays in consummating transactions, result in the abandonment of transactions, and impose burdensome operational requirements on our Portfolio Assets. These laws could also negatively impact our ability to attract investors by causing us to exclude or limit certain investors in us or co-investors for our transactions. Moreover, these laws may make it difficult for us to identify suitable buyers for our Portfolio Assets that we want to exit and could constrain the universe of exit opportunities generally. Complying with these laws imposes potentially significant costs and complex additional burdens, and any failure by us or our Portfolio Assets to comply with them could expose us to significant penalties, sanctions, loss of future acquisition opportunities, additional regulatory scrutiny, and reputational harm. In addition, we may be subject to successor liability violations of applicable AML, economic sanctions, or trade control laws committed by portfolio companies which we acquire.

#### The prices of the Company's Asset-Backed Instruments are volatile and could change as a result of valuations and changing accounting standards.
The valuation of the assets of the Company will affect the Company's reported performance. Although valuations of the Company's assets are performed in accordance with the terms of the valuation guidelines as approved by the Board, the Company's assets are investments for which there is no, or a limited, liquid market and the fair value of such assets may not be readily determinable. There is no assurance that the value assigned to an asset at a certain time will accurately reflect the value that will be realized by the Company upon the eventual disposition of the asset and the performance of the Company could be adversely affected if such valuation determinations are materially higher than the value ultimately realized upon the disposition of the asset. Such valuations also may vary from similar valuations performed by independent third parties for similar types of securities or assets.

Valuation methodologies used to value an asset involve subjective judgments and projections and may not be accurate. Valuation methodologies also involve assumptions and opinions about future events, which may or may not turn out to be correct. For example, the Operating Manager could believe that capitalization rates will be lower upon sale of an asset than they ultimately are, or that interest rates will decline during the hold period of an asset thereby creating attractive value even though rates do not decline. Valuation methodologies may permit reliance on a prior period valuation of particular assets. Ultimate realization of the value of an asset depends to a great extent on economic, market and other conditions beyond the Operating Manager's or the Company's control. The valuation of assets will affect the amount and timing of the Performance Fee and the amount of Management Fees paid to the Operating Manager. As a result, there may be circumstances where PIMCO is incentivized to determine valuations that are higher than the actual fair value of assets. There will be no retroactive adjustment in the valuation of any asset or the amount of Performance Fee allocated to PIMCO or Management Fees paid to the Operating Manager to the extent any valuation proves to not accurately reflect the realizable value of an asset.

For purposes of financial reporting that is compliant with GAAP, the Company is required to follow the requirements for valuation set forth in Accounting Standards Codification 820 ("ASC 820"), "Fair Value Measurements and Disclosures" (formerly, Financial Accounting Standards No. 157, "Fair Value Measurements"), which defines and establishes a framework for measuring fair value under GAAP and expands financial statement disclosure requirements relating to Fair Value Measurements. Additional Financial Accounting Standards Board ("FASB") Statements and guidance and additional provisions of GAAP that may be adopted in the future may also

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impose additional, or different, specific requirements as to the valuation of assets and liabilities for purposes of GAAP-compliant financial reporting. Except as described below, the Operating Manager intends to apply ASC 820 and other relevant FASB statements and guidance to the valuation of the Company's assets and liabilities. In particular, the Operating Manager seeks to apply the ASC 820 requirement that the fair value of an asset must reflect any restrictions on the sale, transfer or redemption of such asset—a requirement that may result in the imposition of a discount when determining the fair values of assets that are subject to such restrictions.

ASC 820 and other accounting rules applicable to the Company and various assets in which it acquires are subject to change. Notwithstanding that the Company is a lending platform that conducts its operations so that the Company does not fall within or is excluded from the definition of an "investment company" under the Investment Company Act, the Company expects to utilize investment company accounting methods. Accordingly, such changes may adversely affect the Company. For example, changes in the rules governing the determination of the fair value of assets to the extent such rules become more stringent would tend to increase the cost and/or reduce the availability of third-party determinations of fair value. This may in turn increase the costs associated with selling assets or affect their liquidity due to inability to obtain a third-party determination of fair value.

Notwithstanding the foregoing, the Operating Manager may determine in certain instances to assign to a particular asset or liability a different value under the terms of the LLC Agreement than the value assigned to such asset or liability for financial reporting purposes (in particular, the value assigned to such asset or liability as required by GAAP). In particular, the Operating Manager may not apply GAAP when determining whether an asset has been disposed of (*e.g.*, whether the decline in value is to be treated as significant and permanent for the purposes of determining distributions (including distributions of Performance Fee) and management fees payable to or by the Company that are determined on the bases of Adjusted Cost).

Accordingly, Shareholders should only expect such assets or liabilities to be valued in accordance with GAAP for purposes of preparing the Company's GAAP-compliant audited financial statements. Otherwise, except as expressly required by the terms of the LLC Agreement, the Operating Manager may assign such assets or liabilities a different value for all other purposes (including, without limitation, for purposes of allocating gains and losses), without regard to any GAAP requirements relating to the determination of fair value.

***The Company may be subject to pay-to-play laws, regulations and policies, which prohibit, restrict or require disclosure of payments to state officials by individuals and entities seeking to do business with state entities, including those seeking investments by public retirement funds.***

A number of U.S. states and municipal pension plans have adopted so-called "pay-to-play" laws, regulations or policies which prohibit, restrict or require disclosure of payments to (and/or certain contacts with) state officials by individuals and entities seeking to do business with state entities, including those seeking investments by public retirement funds. The SEC has adopted rules that, among other things, prohibit an investment adviser from providing advisory services for compensation to a government client for two years after the adviser or certain of its executives, employees or agents makes a contribution to certain elected officials or candidates. If the Operating Manager, any of its employees or affiliates or any Service Provider acting on their behalf fails to comply with such laws, regulations or policies, such non-compliance could have an adverse effect on the Company and PIMCO generally, and may require the applicable Shareholder to withdraw from the Company, which in turn could adversely affect the other Shareholders. There are also similar rules at the state level. Any failure on PIMCO or the Company's part to comply with such rules could result in enforcement action, exposing either party to significant penalties and reputational damage.

***While the Company tries to comply with privacy, data protection, information security and wider data laws, it cannot always accurately anticipate the ways in which those laws will be interpreted, potentially subjecting the Company to liability.***

Privacy, data protection, information security and wider data have become top priorities for regulation in the United States and around the world. Many jurisdictions in which PIMCO, the Company and its Portfolio Assets operate have laws and regulations in relation to privacy, data protection, information security and wider data, including as examples the Gramm-Leach-Bliley Act ("GLBA") (including recent amendments to Regulation S-P promulgated under the GLBA), the General Data Protection Regulation ("GDPR") in the European Union, the GDPR as retained

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in U.K. law ("UK GDPR"), and the California Privacy Rights Act ("CPRA"). The Company's and/or the Operating Manager's processing of personal data associated with their staff and representatives, natural person investors, Service Provider representatives and others, including the use of third-party processors and cloud-based services to, among other things, store and maintain personal data, imposes legal and regulatory risks. Legal requirements relating to the collection, storage, handling and transfer of data, including personal data, continue to develop.

Data security and privacy compliance obligations to which PIMCO, the Company and its Portfolio Assets are subject impose compliance costs on such parties, which could increase significantly as laws and regulations evolve globally. PIMCO, the Company and its Portfolio Assets' compliance obligations include those relating to U.S. laws and regulations, including, without limitation, state regulations such as the CPRA, which provides for enhanced consumer protections for California residents, a private right of action for data breaches and statutory fines and damages for data breaches or other California Consumer Privacy Act ("CCPA") violations, as well as a requirement of "reasonable" cybersecurity. At the U.S. federal level, the SEC has adopted amendments to Regulation S-P that took effect December 3, 2025. These amendments impose operationally challenging notification requirements and deadlines and obligations to implement written policies and procedures to govern oversight of service providers that will likely increase associated compliance costs.

Outside of the U.S., the GDPR and the UK GDPR, impose stringent operational requirements on entities which process personal data, including requirements to notify certain data breaches and restrictions on international data transfers, and provide regulators with significant enforcement powers, including the ability to impose penalties of up to the higher of 4% of total annual worldwide turnover or €20 million for the GDPR (£17.5 million for the UK GDPR). These requirements are subject to ongoing judicial and regulatory interpretation. For instance, the GDPR and UK GDPR regulate transfers of personal data to third countries that have not been found to provide adequate protection to such personal data, including the U.S., and the efficacy and longevity of current transfer mechanisms remains uncertain. Any changes to such requirement may further increase compliance costs and/or reduce the ability to send personal data outside of the EEA and/or UK.

The EU and UK are also considering or have enacted a variety of other laws and regulations relating to data which could have a material impact on PIMCO, the Company, its Portfolio Assets or their respective affiliates. For example, the EU has recently introduced the EU AI Act, which will likely apply to certain AI systems and the data used to train, test and deploy AI (see "—*The Company may face risks associated with its use of certain computer and algorithmic research tools*." above). Other potentially relevant regulations include the Digital Operational Resilience Act (EEA) and the (draft) Financial Data Access Regulation (EEA). PIMCO, the Company and its Portfolio Assets cannot predict how these and other data laws may develop, or how they will be applied or interpreted by regulators and courts, and they may result in the business practices of the Operating Manager, the Company, its Portfolio Assets or their respective affiliates changing in a manner which adversely affects the Company.

Further legislative evolution in the field of data protection and privacy is also expected. For example, the UK's Data (Use and Access) Act received Royal Assent on June 19, 2025 and is making various amendments to the current UK data protection regime, including to bring the maximum fine threshold for infringement of certain requirements relating to direct marketing and the use of cookies (currently £500,000) in line with the UK GDPR threshold (i.e., the higher of £17.5 million or 4% of annual global turnover), as well as introducing new data sharing frameworks. In addition, on November 19, 2025, the EU published a proposal to make certain simplifications to the GDPR and other data, privacy and cybersecurity related laws, including the ePrivacy Directive and EU AI Act. This is increasing divergence between EEA and UK requirements, which may create a greater dual regulatory compliance burden in circumstances where entities are subject to both regimes.

While the Company, the Operating Manager and other members of PIMCO or its affiliates seek to comply with their privacy, data protection, information security and wider data obligations under applicable laws, they may not be able to accurately anticipate the ways in which regulators and courts will apply or interpret the law. The failure of the Company and/or the Operating Manager, or another member of PIMCO's or its affiliates' indirectly providing services to the Company to comply, or perceived inability to comply, with privacy and data protection laws could result in negative publicity and may subject the Company to significant costs associated with litigation, settlements, regulatory action, judgments, liabilities or penalties. And if privacy or data protection laws are implemented, interpreted or applied in a manner inconsistent with PIMCO's expectations, that may result in business practices changing in a manner that adversely impacts the Company. Moreover, if the Company and/or the Operating Manager, or other members of PIMCO or its affiliates suffer a security breach impacting personal data, there may be obligations to notify government authorities or stakeholders, which may divert the Operating Manager's time and effort and entail substantial expense.

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Many regulators have indicated an intention to take more aggressive enforcement actions regarding data privacy matters, and private litigation resulting from such matters is increasing and resulting in progressively larger judgments and settlements. For example, the SEC's stated 2026 examination priorities included an intended focus on policies and procedures related to information security and operational risks in the safeguarding of customer records and information. Furthermore, as new data protection and privacy-related laws and regulations are implemented, the time and resources needed for the Company and its Portfolio Assets to comply with such laws and regulations continues to increase and become a significant compliance workstream.

***Compliance with the SEC's Regulation Best Interest ("Regulation Best Interest") by participating broker-dealers may negatively impact the Company's ability to raise capital in this offering, which could harm the Company's ability to achieve its objectives.***

Broker-dealers must comply with Regulation Best Interest, which, among other requirements, establishes a standard of conduct for broker-dealers and their associated persons when making a recommendation of any securities transaction or investment strategy involving securities to a retail customer. The full impact of Regulation Best Interest on participating broker-dealers cannot be determined at this time, and it may negatively impact whether participating broker-dealers and their associated persons recommend this offering to certain retail customers, or the number of Shares which are recommended to such customers. In particular, under SEC guidance concerning Regulation Best Interest, a broker-dealer recommending an investment in the Shares should consider a number of factors under the duty of care obligation of Regulation Best Interest, including but not limited to cost and complexity of the investment and reasonably available alternatives in determining whether there is a reasonable basis for the recommendation. Broker-dealers may recommend a more costly or complex product as long as they have a reasonable basis to believe it is in the best interest of a particular retail customer. However, if broker-dealers choose alternatives to the Shares, many of which likely exist, the Company's ability to raise capital may be adversely affected. Shareholders should ask their broker-dealer or other financial professional about what reasonable alternatives exist for them, and how the Company's offering compares to other types of investments (*e.g.*, listed entities) that may have lower costs, complexities, and/or risks, and that may be available for lower or no commissions. If Regulation Best Interest reduces the Company's ability to raise capital in this offering, it may harm the Company's ability to achieve its objectives.

***The Company could be subject to review and approval by CFIUS or other regulatory agencies resulting in limitations or restrictions on its acquisitions and Joint Ventures.***

Certain acquisitions made by the Company, including those that involve a business or real estate connected with, related to or that implicates national security, critical technology, critical infrastructure, or the collection or storage of sensitive data, could be subject to review and approval by the Committee on Foreign Investment in the United States ("CFIUS") and/or non-U.S. national security/investment clearance regulators or other regulators (each, a "FDI Regulator"), depending on the beneficial ownership and control of Shares in the Company, as well as access to information and other rights regarding Company assets. In the event that a FDI Regulator reviews one or more of the Company's proposed or existing acquisitions, there can be no assurances that the Company will be able to maintain, or proceed with, such acquisitions on terms acceptable to the Company. FDI Regulators may seek to impose limitations or restrictions that prevent the Company from maintaining or pursuing acquisitions, which could adversely affect the Company's performance with respect to such acquisitions (if consummated) and thus the Company's performance as a whole. In the event that restrictions are anticipated to be imposed on any acquisition by the Company due to the non-U.S. status of a Shareholder or group of Shareholders or other related CFIUS, national security or other regulatory considerations, the Operating Manager could choose to exclude such Shareholder(s) from participating in such acquisition, require the Shareholder(s) to withdraw from the Company, restrict transfers by a Shareholder, substitute required votes by the Board or Shareholders, restrict or otherwise limit information otherwise required to be provided to Shareholders or the Board or implement a structure for such acquisition that results in different instruments being held by or for the benefit of such Shareholders, which could result in such Shareholders receiving all or a portion of any distributions relating to such acquisition in a different manner, or on different timing, than other Shareholders or the Operating Manager (including in respect of the Operating Manager's Performance Fee). The outcome of CFIUS's and other FDI Regulators' processes may be difficult to predict, and there is no guarantee that, if applicable to a Portfolio Asset, the decisions of CFIUS or other FDI Regulators would not adversely impact the Company's acquisition of such entity.

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If the Company acquires a Portfolio Asset for which approval by CFIUS or a FDI Regulator is being sought, the Company and a governmental entity might address perceived threats to national security or other relevant concerns through mitigation measures such as, including contractual undertakings with such governmental entity, board resolutions and proxy agreements, among others. Such measures may include the disclosure of certain identifying information relating to some or all of the Shareholders to the applicable regulator and/or, in certain circumstances, filing requirements being imposed on one or more Shareholders and/or Co-Investors and complying with these laws or measures may impose potentially significant costs and complex additional burdens. The time it takes to negotiate any such measures or the length of the review process of a FDI Regulator could place the Company at a competitive disadvantage to purchasers not subject to review by a FDI Regulator. Should approval by a FDI Regulator be a closing condition to a prospective transaction, there is a risk that such approval might not be granted and the Company will have to bear the costs and expenses relating to such unconsummated acquisition.

#### U.S. Outbound Investment Security Program.
The Treasury's Outbound Investment Security Program, which became effective on January 2, 2025, provides for a targeted national security regulatory framework currently directed at regulating outbound investment from the United States into entities from the People's Republic of China, Hong Kong, and Macau engaged in the semiconductors and microelectronics, quantum information technologies, and artificial intelligence sectors. Codified at 31 C.F.R. § 850.101 et seq, the Outbound Investment Security Program imposes notification requirements and prohibitions for certain categories of transactions involving such entities. The Outbound Investment Security Program results in legal obligations and reporting requirements relating to new investments in such entities and could negatively impact the Company's operations or its ability to make and exit investments, including without limitation by (i) limiting the scope of its investment activities, and (ii) limiting the Company's ability to exit certain investments or the range of exit opportunities.

On December 18, 2025, President Trump signed into law the National Defense Authorization Act for Fiscal Year 2026 ("NDAA"), which provides the Treasury with new authority to expand the Outbound Investment Security Program through the regulatory process. Namely, the relevant provisions of the NDAA—referred to as the Comprehensive Outbound Investment National Security Act of 2025—appropriate $150,000,000 to Treasury and require that Treasury issue new regulations regarding notifiable transactions within 450 days of enactment. Notable changes include the expansion of covered technologies to include those related to high-performance computing and supercomputing as well as hypersonic systems. In addition, the NDAA adds Cuba, Iran, North Korea, Russia, and Venezuela to the list of "countries of concern." As a result, future regulatory updates could expand the types of transactions that are prohibited or require notification; such changes could further impact our ability to participate in transactions—either as buyer or seller—or otherwise affect our investment strategies. Finally, it is unclear how the Outbound Investment Security Program, as it may be amended, and any related future regulations, will be interpreted and implemented by the U.S. government. Therefore, the Company cannot fully anticipate its scope or guarantee compliance with the rules.

#### Acquiring Asset-Backed Instruments that derive substantially all of their revenues from throughput-related fees subjects the Company to increased regulation.
The Company may acquire Asset-Backed Instruments that derive substantially all of their revenues from tolls, tariffs or other usage or throughput-related fees. Services provided by such Asset-Backed Instruments may be subject to rate regulation by a Regulatory Agency that determines or limits the prices that may be charged, particularly if the relevant Asset-Backed Instrument is the sole or predominant Service Provider in its service area or provides services that are essential to the community. An Asset-Backed Instrument may be subject to unfavorable regulatory determinations that may be final with no right of appeal or that, despite a right of appeal, could result in their profits being negatively affected and assets not meeting initial return expectations. Users of the applicable service provided by an Asset-Backed Instrument may react negatively to any adjustments to the applicable rates, or public pressure may cause a Regulatory Agency to challenge such rates. In addition, adverse public opinion, or lobbying efforts by specific interest groups, could result in government pressure on such Asset-Backed Instrument to reduce their rates or to forego planned rate increases or may otherwise result in a reduction of usage volume by users of the applicable

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service. It cannot be guaranteed that Regulatory Agencies with which the Asset-Backed Instrument has concession agreements will not try to exempt certain users from tolls, tariffs or other fees or negotiate lower rates. If public pressure or government action forces an Asset-Backed Instrument to restrict their rate increases or reduce their rates or reductions in usage of the relevant services and cannot be reversed or become significant and/or long term and the Asset-Backed Instrument is not able to secure adequate compensation to restore the economic balance of the relevant concession agreement, the Company's business, financial condition and results of operations could be adversely affected. To the extent that the Operating Manager's assumptions regarding the demand, usage and patronage of assets prove incorrect, the Company's financial returns could be adversely affected. Some of these Asset-Backed Instruments may be subject to seasonal variations in terms of usage. Accordingly, the Company's operating results for any particular Asset-Backed Instruments in any particular quarter may not be indicative of the results that can be expected for such Asset-Backed Instruments throughout the entire year.

***Changes in economic policy, the regulation of the asset management industry, insurance law, tax law, immigration policy, environmental protection and/or climate change policies or regulations and/or government entitlement programs could negatively affect the Company.***

Any significant changes in, among other things, economic policy (including with respect to interest rates and foreign trade), the regulation of the asset management industry, insurance law, tax law, immigration policy, environmental protection and/or climate change policies or regulations and/or government entitlement programs could have a material adverse impact on the Company and its assets. More generally, legislative acts, rulemaking, adjudicatory or other activities by U.S. or non-U.S. governmental, quasi-governmental or self-regulatory bodies, agencies and regulatory organizations could make it more difficult (or less attractive) for the Company to achieve its objectives or for some or all of the Company's Portfolio Assets to engage in their respective businesses.

Populist, protectionist and anti-globalization movements, particularly in Western Europe and the United States, could result in material changes in economic, trade and immigration policies, all of which could lead to significant disruption of global markets and could have materially adverse consequences on the instruments of the Company, including in particular on Portfolio Assets whose operations are directly or indirectly dependent on international trade.

There can be no assurance that the Company will achieve its objective or any particular level of returns. An investor may lose all of its money by investing in the Company. Moreover, an investment in the Company is not a deposit of a bank and is not guaranteed or insured by any government agency. PIMCO does not guarantee the success, repayment of capital or any rate of return on income or capital or performance of the Company.

#### Item 1B. Unresolved Staff Comments
None.

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Item 1C. Cybersecurity

The Operating Manager, led by its Global Chief Information Security Officer, with support from the Company's management, including the Company's Chief Legal Officer, are responsible for conducting a risk assessment which includes cybersecurity threats. The Operating Manager possesses relevant expertise, and members of Company management possess relevant experience, in various disciplines that are important to effectively managing cybersecurity related risks including Security Operations, Vulnerability Management, Network Security, Application and Cloud Security, and cybersecurity risk management. The Operating Manager and the Company maintain compliance policies and programs, which include policies and procedures that are reasonably designed to address regulatory risks related to cybersecurity. The compliance programs include controls to monitor the prevention, detection, mitigation and remediation of cybersecurity incidents impacting the Company.

#### Cybersecurity Program Overview
The Operating Manager has instituted a cybersecurity program designed to identify, assess, and mitigate cyber risks applicable to the Company. The cyber risk management program involves risk assessments, implementation of security measures, and ongoing monitoring of systems and networks, including networks on which the Company relies. The Operating Manager actively monitors the current threat landscape in an effort to identify material risks arising from new and evolving cybersecurity threats, including material risks faced by the Company.

The Company relies on the Operating Manager to engage external experts, including cybersecurity assessors, consultants, and internal auditors to evaluate cybersecurity measures and risk management processes, including those applicable to the Company. The Company relies on the Operating Manager's risk management program and processes, which include cyber risk assessments.

The Company depends on and engages various third parties, including suppliers, vendors, and service providers, to operate its business. The Company relies on the expertise of risk management, legal, information technology, and compliance personnel of the Operating Manager when identifying and overseeing risks from cybersecurity threats associated with our use of such entities.

#### Board Oversight of Cybersecurity Risks
The Board provides oversight on cybersecurity matters, including risks associated with cybersecurity threats. The Board receives periodic updates from the Operating Manager's Global Chief Information Security Officer or their designee and the Company's Chief Legal Officer regarding the overall state of the Operating Manager's cybersecurity program, information on the current threat landscape, and risks from cybersecurity threats and cybersecurity incidents impacting the Company.

#### Management's Role in Cybersecurity Risk Management
The Operating Manager's Global Chief Information Security Officer and the Company's management, including the Company's Chief Legal Officer, are responsible for assessing and managing material risks from cybersecurity threats. Members of Company management possess relevant expertise in various disciplines that are key to effectively managing such risks. Management of the Company is informed about and monitors the prevention, detection, mitigation, and remediation of cybersecurity incidents impacting the Company, including through the receipt of notifications from service providers and reliance on communications with risk management, legal, information technology, and/or compliance personnel of the Operating Manager.

#### Assessment of Cybersecurity Risk
The potential impact of risks from cybersecurity threats on the Company are assessed on an ongoing basis, and how such risks could materially affect the Company's business strategy, operational results, and financial condition are regularly evaluated. During the reporting period, neither the Operating Manager's Global Chief Information Security Officer nor the Company has identified any risks from cybersecurity threats, including as a result of previous cybersecurity incidents, that the Company believes have materially affected, or are reasonably likely to materially affect, the Company, including its business strategy, operational results, and financial condition.

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#### Item 2. Properties
Our corporate headquarters are located at 650 Newport Center Drive, Newport Beach, CA 92660, and are provided by the Operating Manager. We believe that our office facilities are suitable and adequate for our business as it is contemplated to be conducted.

#### Item 3. Legal Proceedings
We are not currently subject to any material legal proceedings, nor, to our knowledge, are any material legal proceedings threatened against us. In addition, we are not aware of any legal proceedings, actual or threatened, that would be expected to materially adversely affect the Operating Manager's ability to meet its obligations to the Company pursuant to the Operating Agreement. From time to time, we, or the Operating Manager, may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under contracts with our Portfolio Assets. We may also be subject to regulatory proceedings.

#### Item 4. Mine Safety Disclosures
Not applicable.

#### Part II.

#### Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information
Our outstanding Investor Shares are offered and sold in transactions exempt from registration under Regulation D and/or Regulation S. See "*Item 1. Business—Private Offering of Shares*" for more information. There is no public market for our Shares currently, nor do we expect that one will develop.

Because our Investor Shares are, and will continue to be, purchased by investors in one or more transactions "not involving a public offering," they are "restricted securities" and may be required to be held indefinitely. Our Investor Shares may not be sold or transferred (i) except as permitted under the LLC Agreement and (ii) unless the Investor Shares are registered under applicable securities laws or specifically exempted from registration. Accordingly, an investor must be willing to bear the economic risk of investment in the Investor Shares unless and until we accept their repurchase or transfer. No sale, transfer, assignment, pledge or other disposition, whether voluntary or involuntary, of the Investor Shares may be made except by registration of the transfer on our books. Each transferee will be required to execute an instrument agreeing to be bound by these restrictions and the other restrictions imposed on the Investor Shares and to execute such other instruments or certifications as are reasonably required by us.

#### Holders
As of February 28, 2026, the Company had the below number of holders of record for each outstanding type of Shares:

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| | |
|:---|:---|
| **Type** | **Number of Holders** |
| **Series I** | **Series I** |
| Anchor I Shares | 2 |
| Anchor II Shares | 91 |
| Anchor II-B Shares | 1 |
| Standard A Shares | 6 |
| Standard B Shares | 1 |
| E Shares | 17 |
| V Shares | 1 |
| **Series II** | **Series II** |
| Anchor I Shares | 82 |
| Anchor II Shares | 29 |
| Anchor III Shares | 1 |
| Standard A Shares | 5 |
| E Shares | 24 |
| V Shares | 1 |

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The number of Shares outstanding excludes March 2, 2026 subscriptions since the relevant NAV has not been published and Shares have not been allocated as of the date of this filing.

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#### Net Asset Value

#### Calculation of NAV
The Company determines NAV of the Shares no less frequently than monthly. The Operating Manager prepares and intends to continue preparing valuations with respect to each of our assets in accordance with its valuation guidelines approved by the Board. The Administrative Agent uses and intends to continue using the estimated values provided as well as inputs from other sources in its calculation of our monthly NAV per Share. The NAV per Share of each type of the Company's Shares is determined by dividing the total assets of the Company (the value of assets, plus cash or other assets, including interest and distributions accrued but not yet received) attributable to such type less the value of any liabilities (including accrued expenses or distributions) of such class, by the total number of Shares outstanding of such class.

#### Timing of Valuations
The value of the Company's Portfolio Assets is monitored for material changes on a monthly basis for purposes of updating the Company's monthly NAV. The Company intends to report its NAV per Share for each type of Share outstanding as of the last day of each month on its website at https://pimco.com/palcoseriesi or https://pimco.com/palcoseriesii, as applicable, within 28 days of the last day of each month.

#### Valuation Guidelines
The Portfolio Assets shall be valued at fair value in a manner consistent with generally accepted accounting principles in the United States ("GAAP"), including Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosure ("ASC Topic 820"), issued by the Financial Accounting Standards Board. ASC Topic 820 defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each acquisition while employing a valuation process that is consistently followed. Determinations of fair value involve subjective judgments and estimates.

When making fair value determinations for Portfolio Assets that do not have readily available market prices, we intend to consider industry-accepted valuation methodologies, primarily consisting of an income approach and market approach. The income approach derives fair value based on the present value of cash flows that a business or security is expected to generate in the future. The market approach relies upon valuations for comparable public companies, transactions or assets, and includes making judgments about which companies, transactions or assets are comparable. A blend of approaches may be relied upon in arriving at an estimate of fair value, though there may be instances where it is more appropriate to utilize one approach. We also consider a range of additional factors that we deem relevant, including a potential sale of the Portfolio Assets, macro and local market conditions, industry information and the relevant Portfolio Assets' historical and projected financial data.

The Board has adopted the Operating Manager's valuation policy as the valuation policy of the Company. At least annually, the Board, including our independent directors, will review the appropriateness of our valuation policy and guidelines. From time to time, the Board, including our independent directors, may adopt material changes to the valuation policy on occasions in which it has determined or in the future determines that such changes are likely to result in a more accurate reflection of estimated fair value. Any other, non-material, changes may be made by the Company or the Operating Manager.

#### Distributions
Beginning February 2026, the Company started paying distributions to its Shareholders. The Company intends to declare, accrue and pay distributions on a monthly basis. However, there can be no guarantee that the Company will declare distributions consistently and at a specific rate, or at all. Each class of the Shares receives the same gross distribution per Share, when distributions are declared on such class. The net distribution varies for each class based on the estimated applicable shareholder servicing fees and distribution fees, which are deducted from the monthly distribution per Share and paid directly to the Dealer-Manager. The net distributions will be paid in cash or reinvested in Shares of the Company for Shareholders participating in the Company's DRIP. See "*Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations—Distributions*." For the calendar year-ended December 31, 2025, the Company did not declare or pay any distributions.

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#### Share Repurchases
The Company intends to conduct a quarterly share repurchase (each, a "Share Repurchase") for up to 5.0% of the aggregate NAV (measured collectively across both Series) of outstanding Shares at a price based on the NAV per Share as of the last calendar day of the quarter prior to the commencement of a Share Repurchase (the "Repurchase Plan"); *provided* that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law. The Company commenced its Share Repurchases beginning February 2026. Due to differential fees (including accrued, but unpaid Performance Fees) and other factors, the NAV of each type of Shares will differ, but all NAV calculations are expected to be based on the joint underlying economic interests of the Company in the assets underlying its portfolio assets.

Until the second anniversary of the Launch Date, Shares requested to be repurchased shall be subject to an early repurchase fee (the "Early Repurchase Fee") of 5.0% of the NAV of the Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares and Anchor III Shares repurchased.

During the calendar year ended December 31, 2025, the Company did not repurchase any Shares.

#### Recent Sales of Unregistered Securities and Use of Proceeds
The Company did not make any sales of unregistered securities during the fiscal year ended December 31, 2025 that were not previously disclosed in a quarterly report on Form 10-Q or a current report on Form 8-K.

#### Item 6. [Reserved]

#### Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read in conjunction with the financial statements and notes thereto appearing elsewhere in this Annual Report. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those in this discussion as a result of various factors, including but not limited to those discussed in *"Item 1A. Risk Factors"* in this Annual Report.

#### Overview
The Company was formed on March 11, 2025 as a Delaware limited liability company. The Company commenced operations on July 15, 2025 and was formed to build a diversified portfolio of Asset-Backed Instruments through its wholly or majority-owned subsidiaries. The Company seeks to achieve its investment objectives by investing primarily in Asset-Backed Instruments. To accomplish this, the Company plans to focus on assets outside the traditional corporate and commercial real estate lending markets.

The Company formed separate Series pursuant to Sections 18-215(c) and 18-218(c)(1) of the LLC Act, and although the Internal Revenue Service ("IRS") has only issued proposed regulations relating to series entities, each Series is intended to be treated as a separate entity for U.S. federal income tax purposes. Although the Series are separate legal entities, they are expected to invest, directly or indirectly, in the same Portfolio Assets on a *pro rata* basis, with equal voting rights with respect thereto. While it is the Company's intention that the Series will generally hold *pro rata* economic interests in each Asset-Backed Instruments, such economic interests may not be *pro rata* in all instances. The Company expects that deviations from this *pro rata* holding intention would be a result of cash flows into the Series and different tax obligations between the Series. The Series conduct the business of the Company jointly and although they have the ability and intention to contract in their own names, they expect to do so jointly and in coordination with one another. Each Series is overseen by the Board and managed by PIMCO. As a Delaware limited liability company with two different series, to the extent the records maintained for a Series account for the assets associated with a Series separately from the assets of the Company or any other Series, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to such Series are segregated and enforceable only against the assets of such Series and not the assets of the Company generally or of any other Series, as provided under Delaware law. Each of Series I and Series II has elected to be treated as a separate entity for U.S.

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federal income tax purposes. Series I has elected to be treated as a corporation for U.S. federal income tax purposes and Series II has elected to be treated as a partnership for U.S. federal income tax purposes. The state tax treatment of a limited liability company, and of different series in a series limited liability company, depends on the laws of each state. Although there is no direct authority on point, the Company generally expects that the vast majority of states will follow the U.S. federal tax treatment. However, it is possible that a state may classify Series I and/or Series II differently than the IRS does for U.S. federal income tax purposes. The state tax treatment of a series limited liability company depends on the laws of each state, and it is possible that a particular state may treat Series I and Series II as a single entity for state tax purposes or may treat Series I or Series II as separate entities but classified differently than the IRS does for U.S. federal income tax purposes.

The Company is conducting a continuous private offering of its limited liability company interests ("Shares") in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), to (i) accredited investors (as defined in Regulation D under the Securities Act) and (ii) in the case of shares sold outside of the United States, to persons that are not "U.S. persons" (as defined in Regulation S under the Securities Act). The Company currently offers six types of Shares in Series I and eight types of Shares in Series II. For Series I, there are: Anchor I Shares, Anchor II Shares, Anchor II-B Shares, Standard A Shares, Standard B Shares and E Shares. (collectively, the "Series I Shares"). For Series II, there are: Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares, Standard B Shares and E Shares (collectively, the "Series II Shares"). The Company may offer additional types of Shares in the future. The share types have different upfront selling commissions and ongoing distribution and shareholder servicing fees.

#### Key Components of the Company's Combined Results of Operations

#### Investments
The Company's level of investment activity can, does, and will vary substantially from period to period depending on many factors, including the amount of debt available to middle-market companies, the general economic environment and the competitive environment for the type of investments the Company makes.

#### Revenue Recognition
The Company records dividend income and accrues interest income pursuant to the terms of the respective Asset-Backed Instruments, unless, in the case of dividend income, the Company determines that the Asset-Backed Instruments do not have positive earnings in which case such dividend income is treated as a return of capital. In the case of proceeds received from investments in a partnership investment vehicle and limited partnerships, the Company determines the character of such proceeds and records any interest income, dividend income, realized gains or returns of capital accordingly. For the period from March 11, 2025 (date of formation) to December 31, 2025, investment income was comprised of interest income from Asset-Backed Instruments, as well as dividend income from affiliates and cash.

Investments are placed on non-accrual status when it is probable that principal, interest or dividends will not be collected according to contractual terms. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management's judgement. Non-accrual investments are restored to accrual status when past due principal and interest or dividends are paid and, in management's judgement, principal and interest or dividend payments are likely to remain current. The Company may make exceptions to this treatment if a loan has sufficient collateral value and is in the process of collection.

#### Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss)
Without regard to unrealized gain (loss) previously recognized, realized gains or losses will be measured as the difference between the net proceeds from the sale, repayment, or disposal of an asset and the adjusted cost basis of the asset. Net change in unrealized gain (loss) will reflect the change in investment values during the reporting period, including the reversal of any previously recorded unrealized gain (loss) when gains or losses are realized.

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#### Expenses
The Company's primary operating expenses include the payment of: (i) Management Fee to the Operating Manager pursuant to the Operating Agreement between the Company and the Operating Manager (unless waived); (ii) Performance Fee payable to the Operating Manager pursuant to the Operating Agreement between the Company and the Operating Manager; and (iii) other operating expenses as detailed below:

• salaries and other compensation or expenses, including travel expenses, of any of the Company's executive officers, directors and employees, if any, who are not officers, directors, stockholders, members, partners or employees of PIMCO or its subsidiaries or affiliates;

• taxes and governmental fees, if any, levied against the Company;

• payments, fees, costs, expenses and other liabilities, allocable overhead or other amounts or compensation (such as arranger, brokerage, placement, syndication, solicitation, underwriting, agency, origination, sourcing, group purchasing, structuring, collateral management, special purpose vehicle (including any special purpose vehicle of a Portfolio Asset), capital markets syndication and advisory fees (including underwriting and debt advisory fees) or subsidiary management or administration, operation, asset service, advisory, commitment, facility, float, insurance, reinsurance or other fees, discounts, retainers, spreads, commissions and concessions or other fees associated with the effectuation of any securities or financing transactions, but not merger and acquisition transaction advisory services fees related to the negotiation of the acquisition of a Portfolio Asset (including, for the avoidance of doubt, collateralized loan obligations, collateralized debt obligations, residential mortgage-backed securities and other structures acquired by the Company) earned by or paid (whether in cash or in kind) to an Affiliated Service Provider, or another person with respect to services rendered by such Affiliated Service Provider or other person); provided that if such Affiliated Service Provider is engaged in the relevant activity or service on a for-profit basis, as determined by the Operating Manager in good faith, then, unless approved by the Board, the applicable fees paid to it for such services will be on terms as determined by the Operating Manager which the Operating Manager determines are not materially less favorable to the Company or the applicable Portfolio Asset than the fees that could be paid to a third party with commensurate skill, expertise or experience (to the extent applicable), in each case, as determined by the Operating Manager in good faith; expenses related to SPVs (including, without limitation, overhead expenses related thereto);

• costs, including interest expenses, of borrowing money or engaging in other types of leverage financing including, without limitation, through the use by the Company of reverse repurchase agreements, dollar rolls/buy backs, bank borrowings, credit facilities and tender option bonds;

• fees and expenses of any underlying funds or other pooled vehicles in which the Company invests;

• expenses of any third party valuation agent engaged to assist in valuing the Company's assets;

• extraordinary expenses, including extraordinary legal expenses, as may arise, including, without limitation, expenses incurred in connection with litigation, proceedings, other claims, and the legal obligations of the Company to indemnify its directors, officers, employees, stockholders, distributors, and agents with respect thereto;

• fees and expenses, including legal, printing and mailing, solicitation and other fees and expenses associated with and incident to stockholder meetings and proxy solicitations;

• allocated costs incurred by PIMCO in providing managerial assistance to those companies in which the Company has invested who request it;

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• the Company's pro rata portion of insurance premiums (including costs relating to directors' and officers' liability insurance and errors and omissions insurance);

• all fees, costs, expenses, and liabilities relating to currency hedging and portfolio hedging transactions;

• all fees, costs, expenses and liabilities of liquidating the Company;

• all fees, costs, expenses and liabilities that are specific to the operations of the Company; and

• all expenses of the Company that are capitalized in accordance with generally accepted accounting principles.

The Company reimburses the Operating Manager or its affiliates for amounts paid or costs borne that properly constitute Company expenses as set forth in the Operating Agreement or otherwise. The Company expects its general and administrative expenses to be relatively stable or to decline as a percentage of total assets during periods of asset growth and to increase during periods of asset declines.

#### Portfolio, Investment Activity and Combined Results of Operations
The Company's Asset-Backed Instruments were comprised of 100.0% fixed rate investments with fair values of $7.5 million, $141.7 million and $149.2 million for Series I, Series II and the Company, respectively, as of December 31, 2025.

#### Combined Results of Operations
The following table represents the Company's operating results from March 11, 2025 (date of formation) to December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Series I** | **Series II** | **PIMCO Asset-<br>Based Lending<br>Company LLC** |
|  Total Investment Income | $356 | $9404 | $9760 |
|  Less: Net expenses | 92 | 2078 | 2170 |
|  Provision for (benefit from) income taxes | 65 | 15 | 80 |
|  **Net investment income (loss)** | $**199** | $**7311** | $**7510** |
|  Net realized gain (loss) | 1 | 14 | 15 |
|  Net change in unrealized appreciation (depreciation) | (4) | 640 | 636 |
|  **Net increase (decrease) in Net Assets resulting from operation** | $**196** | $**7965** | $**8161** |

---

Investment income from March 11, 2025 (date of formation) to December 31, 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **Series I** | **Series II** | **PIMCO Asset-<br>Based Lending<br>Company LLC** |
|  **Investment Income:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | $212 | $5341 | $5553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income from affiliates | 144 | 4063 | 4207 |
|  **Total Investment Income** | $**356** | $**9404** | $**9760** |

---

For the period from March 11, 2025 (date of formation) to December 31, 2025, total investment income was driven by the Company's deployment of capital and invested balance of investments. The size of the Company's investment portfolio at fair value was $333.5 million as of December 31, 2025 and, as of such date, all of the Company's investments were income-producing.

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#### Expenses
Expenses from March 11, 2025 (date of formation) to December 31, 2025 were as follows (amounts in thousands):

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| | | | |
|:---|:---|:---|:---|
|  | **Series I** | **Series II** | **PIMCO Asset-<br>Based Lending<br>Company LLC** |
|  **Expenses:** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General and administrative expenses | $117 | $3384 | $3501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organizational expenses | 319 | 1733 | 2052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred offering expenses amortization | 251 | 1161 | 1412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management Fee | 23 | 536 | 559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance Fee | 15 | 415 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors fee | 6 | 262 | 268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 12 | 248 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Related party professional fees | 5 | 185 | 190 |
|  **Total expenses** | $**748** | $**7924** | $**8672** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense support, waiver and rebate | (656) | (5846) | (6502) |
|  **Net expenses** | $**92** | $**2078** | $**2170** |

---

General and administrative expenses include valuation, insurance, filing, research, subscriptions and other costs. Organizational and Offering Expenses include expenses incurred in the Company's initial formation and the Company's offering of Shares.

"Expense support, waiver and rebate" includes expense support provided by the Operating Manager, Management Fee waivers and Management Fee rebates related to investments in affiliates.

#### Income Taxes
Series I and Series II are treated as separate entities for U.S. federal income tax purposes with segregated assets and liabilities. Series I is treated as a corporation for U.S. federal income tax purposes, and Series II is treated as a partnership for U.S. federal income tax purposes. The Company conducts its operations so that it does not fall within the definition of an "investment company" under the Investment Company Act.

#### Financial Condition, Liquidity and Capital Resources
The Company generates cash from the net proceeds of offerings of its Shares, and from cash flows from interest and fees earned from its investments and principal repayments and proceeds from sales of its investments. The Company may also fund a portion of its investments through borrowings from banks and issuances of senior securities, including before the Company has fully invested the proceeds of any closing of the Company's continuous private offering of its Shares. The Company believes that cash provided by such means will be sufficient to satisfy its anticipated cash requirements for the next twelve months and foreseeable future. The Company uses cash primarily for investments in portfolio companies, payments of Company expenses and payment of cash distributions to Shareholders.

#### Financing Transactions
As of December 31, 2025, the Company did not have any outstanding borrowings. The Company may also from time to time enter into new credit facilities, increase the size of existing credit facilities or issue debt securities.

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Any such incurrence or issuance would be subject to prevailing market conditions, the Company's liquidity requirements, contractual and regulatory restrictions and other factors.

#### Revolving Credit Facilities
*Barclays Facility* 

On September 9, 2025, PAL RL REI I LLC, a wholly owned subsidiary of PALCO LVS 4 LP (a subsidiary of the Company, Series I and Series II), entered a TBMA/ISMA Global Master Repurchase Agreement with Barclays Bank PLC ("Barclays"), with PIMCO acting in its own capacity and as manager of the accounts party thereto (the "Barclays Repo Facility"). The Barclays Repo Facility provides for a maximum aggregate purchase price of $5.0 million for all PIMCO accounts party thereto. Borrowings under the facility bear interest at the rate defined in the applicable confirmation annex. The facility matures in March 2027. In connection with the Barclays Repo Facility, the Company provided guarantees in favor of Barclays (the "Guarantee Agreement"), under which the Company guarantees all existing and future payment obligations of PALCO LVS 4 LP to Barclays solely arising out of the Barclays Repo Facility. The Company is also liable under the Guarantee Agreement for all fees and out of pocket expenses relating to the enforcement or protection of the rights of Barclays arising thereunder. The Barclays Repo Facility and the Guarantee Agreement contain representations, warranties, covenants, events of default and indemnities that are customary for similar agreements. As of December 31, 2025, the Company had no outstanding repurchase obligations and was in compliance with all covenants under the Barclays Repo Facility and the Guarantee Agreement.

*Santander Facility* 

On December 12, 2025, PALCO LVS 6, a subsidiary of the Company, Series I and Series II, through its fully owned entity, PAL CL Trust 1, a New York common law trust (the "Trust") entered a revolving credit facility with Banco Santander S.A. (the "Santander Facility"). UMB Bank, National Association is the trustee of the Trust. The Santander Facility's maximum borrowing limit is $200.0 million with a borrowing buffer of $25.0 million as defined in the credit and security agreement. The Company pays an unused fee of 0.40% of the borrowing buffer and an interest rate of SOFR+1.5% on the outstanding principal of the Santander Facility. The maturity date of this facility is December 12, 2026. The Company provides limited guarantees in favor of Banco Santander in accordance with limited guaranty and indemnity agreement. The Trust did not draw down any proceeds from the Santander Facility as of December 31, 2025.

#### Off-Balance Sheet Arrangements
The Company may become a party to investment commitments and to financial instruments with off-balance sheet risk in the normal course of its business to fund investments and to meet the financial needs of its portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the Combined Statement of Assets and Liabilities. As of December 31, 2025, Series I, Series II and the Company had no unfunded commitments on its investment portfolio.

#### Distributions and Distribution Reinvestment

#### Distribution Reinvestment Plan
The Company adopted the DRIP in which cash distributions to Shareholders will automatically be reinvested in additional whole and fractional shares attributable to the type of Shares that a Shareholder owns unless and until an election is made by, or on behalf of, such participating shareholder to withdraw from the DRIP and receive distributions in cash. The number of Shares to be received when distributions are reinvested will be determined by dividing the amount of the distribution, net of any applicable withholding taxes, by the Series' NAV per share as of the end of the prior month. Shares will be distributed in proportion to the Series and types of Shares held by the shareholder under the DRIP. There will be no sales load charges on Shares issued to a Shareholder under the DRIP.

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#### Distributions
Beginning February 2026, the Company started paying distributions to its shareholders. The Company intends to declare, accrue and pay distributions on a monthly basis. However, there is no guarantee that Series I, Series II or the Company will pay monthly distributions consistently and at a specific rate, or at all.

There were no distributions declared for the period from March 11, 2025 (date of formation) to December 31, 2025.

#### Critical Accounting Estimates
The preparation of the Company's Combined financial statements requires the Company to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. The Company's critical accounting policies, including those relating to the valuation of its investment portfolio, should be read in connection with the Company's Combined Financial Statements in Part II, Item 8 and "Risk Factors" in Part I, Item 1A of this Annual Report.

For additional information regarding sensitivities to interest rate risk and the valuation of Portfolio Assets, see Item 5. "Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information—Net Asset Value—Valuations Guidelines" and Item 7A. "Quantitative and Qualitative Disclosures About Market Risk".

#### Related Party Transactions
The Company has entered into a number of business relationships with affiliated or related parties, including the following (which are defined in the notes to the accompanying audited Combined financial statements if not defined herein):

• the Operating Agreement;

• the Expense Limitation and Reimbursement Agreement; and

• the Dealer Manager Agreement.

See "*Item 8. Financial Statements and Supplementary Data—Audited Combined Financial Statements-Notes to audited Combined financial statements-Note 3. Agreements and Related Party Transactions*."

#### Item 7A. Quantitative and Qualitative Disclosures about Market Risk
The Company is subject to financial market risks, including changes in interest rates with respect to the Asset-Backed Instruments. Subject to oversight by the Board, the Operating Manager is responsible for the oversight of risks to the Company's business.

#### Changes in Market Interest Rates
With respect to the Company's business operations, general decreases in interest rates over time may cause the interest income associated with the Company's Asset-Backed Instruments to decrease. Conversely, general increases in interest rates over time may cause the interest income associated with the Company's Asset-Backed Instruments to increase. General increases or decreases in interest rates over time may have an impact on the value of the Company's Asset-Backed Instruments.

The Company's Asset-Backed Instruments were comprised of 100.0% fixed rate investments with fair values of $7,479, $141,691 and $149,170 for Series I, Series II and the Company, respectively, as of December 31, 2025. All positions currently held by the Company are fixed rate and contractually determined, changes in market interest rates would not have an effect on interest income.

In addition, although the Company does not currently intend to make investments that are denominated in a foreign currency, to the extent it does, the Company will be subject to risks associated with changes in currency exchange rates. These risks include the possibility of significant fluctuations in the foreign currency markets, the imposition or modification of foreign exchange controls and potential illiquidity in the secondary market. These risks will vary depending upon the currency or currencies involved.

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0.1912 #### Item 8. Financial Statements and Supplementary Data

#### Index to Combined Financial Statements

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| | |
|:---|:---|
|  | Page |
| [Report of Independent Registered Public Accounting Firm PCAOB ID 238](#fin112132_1) | 179 |
| [Combined Statements of Assets and Liabilities](#fin112132_2) | 180 |
| [Combined Statements of Operations](#fin112132_3) | 182 |
| [Combined Statement of Changes in Net Assets](#fin112132_4) | 183 |
| [Combined Statement of Cash Flows](#fin112132_5) | 184 |
| [Combined Condensed Schedule of Investments](#fin112132_6) | 185 |
| [Notes to Combined Financial Statements](#fin112132_7) | 188 |

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#### **Table of Contents**

#### Report of Independent Registered Public Accounting Firm
To the Board of Directors of PIMCO Asset-Based Lending Company LLC and Shareholders of PIMCO Asset-Based Lending Company LLC – Series I and PIMCO Asset-Based Lending Company LLC – Series II

#### Opinions on the Financial Statements
We have audited the accompanying combined statement of assets and liabilities, including the combined condensed schedule of investments of PIMCO Asset-Based Lending Company LLC and its subsidiaries (the "Company") and the individual statement of assets and liabilities, including the individual condensed schedule of investments, of PIMCO Asset-Based Lending Company LLC – Series I ("Series I") and of PIMCO Asset-Based Lending Company LLC – Series II ("Series II") as of December 31, 2025, and the related combined and individual statements of operations, of changes in net assets, and of cash flows, including the related notes, for the period March 11, 2025 (date of formation) to December 31, 2025 (collectively referred to as the "financial statements"). In our opinion, the combined and individual financial statements present fairly, in all material respects, the combined financial position of the Company and the individual financial position of each of Series I and Series II as of December 31, 2025, and the combined and individual results of each of their operations, changes in each of their net assets and each of their cash flows for the period March 11, 2025 (date of formation) to December 31, 2025 in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinions
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company, Series I and Series II in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinions.

/s/PricewaterhouseCoopers LLP

Kansas City, Missouri

March 31, 2026

We have served as the auditor of the Company, Series I, and Series II since 2025.

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#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Combined Statement of Assets and Liabilities

#### As of December 31, 2025

#### (Amounts in thousands, except share and per share amounts)

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| | | | |
|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 |
|  | Series I | Series II | PIMCO Asset-Based<br>Lending Company LLC |
| Assets |  |  |  |
|  Investments at fair value (Cost at December 31, 2025 of $11,954, $226,681 and $238,635, respectively)\* | $11940 | $226198 | $238138 |
|  Investments in affiliates at fair value (Cost at December 31, 2025 of $4,772, $89,374 and $94,146, respectively) | 4782 | 90589 | 95371 |
|  Derivative assets, at fair value Exchange-traded or centrally cleared | 2 | 30 | 32 |
|  Cash | 918 | 39362 | 40280 |
|  Receivable for paydowns and sales of investments | 44 | 826 | 870 |
|  Deposits with counterparty | 48 | 916 | 964 |
|  Due from Operating Manager | 652 | 5488 | 6140 |
|  Due from affiliate | 1 | 1 | 2 |
|  Deferred offering expenses | 301 | 1632 | 1933 |
|  Deferred financing costs | 11 | 207 | 218 |
|  Interest receivable | 81 | 1542 | 1623 |
|  Other assets | 2 | 44 | 46 |
|  Total Assets | $18782 | $366835 | $385617 |
|  Liabilities |  |  |  |
|  Notes payable and other secured borrowings | 33 | 621 | 654 |
|  Capital subscriptions received in advance | 900 | 39031 | 39931 |
|  Offering expenses payable to Operating Manager | 552 | 2793 | 3345 |
|  Organizational expenses payable to Operating Manager | 319 | 1732 | 2051 |
|  Current tax liability | 139 |  | 139 |
|  Performance Fee payable | 15 | 415 | 430 |
|  Management Fee payable | 20 | 174 | 194 |
|  Tax compliance payable | 24 | 465 | 489 |
|  Interest payable | 0 | 5 | 5 |
|  Other accrued expenses and liabilities | 16 | 3362 | 3378 |
|  Total Liabilities | $2018 | $48598 | $50616 |
|  Commitments & Contingencies (Note 7) |  |  |  |
|  Total Net Assets | $16764 | $318237 | $335001 |
|  \*includes repurchase agreements of: | $4212 | $79788 | $84000 |

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A zero balance may reflect actual amounts rounding to less than one thousand.

The accompanying notes are part of these combined audited financial statements.

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#### PIMCO Asset-Based Lending Company LLC

#### Combined Statement of Assets and Liabilities

#### As of December 31, 2025

#### (Amounts in thousands, except share and per share amounts)

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| | | | |
|:---|:---|:---|:---|
|  | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC |
|  Net asset value per share |  |  |  |
|  Anchor I Shares: |  |  |  |
|  Net assets | $756 | $84918 | $85674 |
|  Shares outstanding | 73617 | 8213773 | 8287390 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $10.27 | $10.34 | $10.34 |
|  Anchor II Shares: |  |  |  |
|  Net assets | $13530 | $83610 | $97140 |
|  Shares outstanding | 1322512 | 8104882 | 9427394 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $10.23 | $10.32 | $10.30 |
|  Anchor II-B Shares: |  |  |  |
|  Net assets | $1 | $- | $1 |
|  Shares outstanding | 110 |  | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $10.26 | $- | $10.26 |
|  Anchor III Shares: |  |  |  |
|  Net assets | $- | $103583 | $103583 |
|  Shares outstanding |  | 10000000 | 10000000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $- | $10.36 | $10.36 |
|  Standard A Shares: |  |  |  |
|  Net assets | $339 | $1768 | $2107 |
|  Shares outstanding | 33060 | 171436 | 204496 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $10.24 | $10.31 | $10.30 |
|  Standard B Shares: |  |  |  |
|  Net assets | $1 | $- | $1 |
|  Shares outstanding | 110 |  | 110 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $10.24 | $- | $10.24 |
|  E Shares: |  |  |  |
|  Net assets | $2136 | $44357 | $46493 |
|  Shares outstanding | 207585 | 4274290 | 4481875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $10.29 | $10.38 | $10.37 |
|  V Shares: |  |  |  |
|  Net assets | $1 | $1 | $2 |
|  Shares outstanding | 40 | 40 | 80 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net asset value per share | $25.00 | $25.00 | $25.00 |

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A zero balance may reflect actual amounts rounding to less than one thousand.

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#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Combined Statements of Operations

#### (Amounts in thousands, except share and per share amounts)

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| | | | |
|:---|:---|:---|:---|
|  | For the period March 11, 2025<br> (date of formation) to December 31, 2025 | For the period March 11, 2025<br> (date of formation) to December 31, 2025 | For the period March 11, 2025<br> (date of formation) to December 31, 2025 |
|  | Series I | Series II | PIMCO Asset-Based<br> Lending Company<br> LLC |
| Investment Income |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest income | $212 | $5341 | $5553 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend income from affiliates | 144 | 4063 | 4207 |
| Total investment income | $356 | $9404 | $9760 |
| Expenses |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General and administrative expenses | $117 | $3384 | $3501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Organizational expenses | 319 | 1733 | 2052 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred offering expenses amortization | 251 | 1161 | 1412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management Fee | 23 | 536 | 559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Performance Fee | 15 | 415 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors fee | 6 | 262 | 268 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 12 | 248 | 260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Related party professional fees | 5 | 185 | 190 |
| Total expenses | $748 | $7924 | $8672 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Expense support, waiver and rebate (Note 3) | (656) | (5846) | (6502) |
| Net expenses | $92 | $2078 | $2170 |
| Net investment income (loss) before taxes | $264 | $7326 | $7590 |
| Provision for (benefit from) income taxes | 65 | 15 | 80 |
| Net investment income | 199 | $7311 | 7510 |
| Net realized and change in unrealized gains (losses) on investments and derivatives: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized gain (loss) on investments in affiliates | $1 | $14 | $15 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments | (14) | (483) | (497) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on investments in affiliates | 10 | 1215 | 1225 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized appreciation (depreciation) on exchange-traded or centrally cleared derivatives | 0 | (92) | (92) |
| Net realized and change in unrealized gains (losses) | $(3) | $654 | $651 |
| Net increase (decrease) in net assets resulting from operations | $196 | $7965 | $8161 |

---

A zero balance may reflect actual amounts rounding to less than one thousand.

The accompanying notes are part of these combined audited financial statements.

------

#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Combined Statement of Changes in Net Assets

#### (Amounts in thousands, except share and per share amounts)

---

| | | | |
|:---|:---|:---|:---|
|  | For the period March 11, 2025<br> (date of formation) to December 31, 2025 | For the period March 11, 2025<br> (date of formation) to December 31, 2025 | For the period March 11, 2025<br> (date of formation) to December 31, 2025 |
|  | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC |
|  Operations: |  |  |  |
|  Net investment income | $199 | $7311 | $7510 |
|  Net realized gain (loss) on investments in affiliates | 1 | 14 | 15 |
|  Net change in unrealized appreciation (depreciation) on investments | (14) | (483) | (497) |
|  Net change in unrealized appreciation (depreciation) on investments in affiliates | 10 | 1215 | 1225 |
|  Net change in unrealized appreciation (depreciation) on exchange-traded or centrally cleared derivatives | 0 | (92) | (92) |
|  Net increase in net assets resulting from operations | $196 | $7965 | $8161 |
|  Capital Transactions |  |  |  |
|  Proceeds from issuance of Shares | $16568 | $310272 | $326840 |
|  Net increase in net assets resulting from capital transactions | $16568 | $310272 | $326840 |
|  Net increase (decrease) in net assets during the period | $16764 | $318237 | $335001 |
|  Net assets at beginning of period | $- | $- | $- |
|  Net assets at end of period | $**16764** | $**318237** | $**335001** |

---

A zero balance may reflect actual amounts rounding to less than one thousand.

The accompanying notes are part of these combined audited financial statements.

------

#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Combined Statement of Cash Flows

#### (Amounts in thousands)

---

| | | | |
|:---|:---|:---|:---|
|  | For the period March 11, 2025 (date of formation)<br> to December 31, 2025 | For the period March 11, 2025 (date of formation)<br> to December 31, 2025 | For the period March 11, 2025 (date of formation)<br> to December 31, 2025 |
|  | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC |
| Cash Flows From Operating Activities: |  |  |  |
| Net increase (decrease) in net assets from operations | $196 | $7965 | $8161 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of long-term securities | (8184) | (155246) | (163430) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of long-term investments in affiliates | (4833) | (90542) | (95375) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of long-term securities | 434 | 8229 | 8663 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of investments in affiliates | 62 | 1182 | 1244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales (purchases) of short-term portfolio investments, net | (4211) | (79782) | (83993) |
| Proceeds from (Payments on) exchange-traded financial derivative instruments | (2) | (122) | (124) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in deposits with counterparty | (48) | (916) | (964) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) on investments | 14 | 483 | 497 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized (appreciation) on investments in affiliates | (10) | (1215) | (1225) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net change in unrealized depreciation on exchange-traded or centrally cleared derivatives | 0 | 92 | 92 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net realized (gain) loss on investments in affiliates | (1) | (14) | (15) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (accretion) on investments | 7 | 118 | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 0 | 4 | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred offering costs | 251 | 1161 | 1412 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense support for amortization of deferred offering costs | (251) | (1161) | (1412) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in due from Operating Manager | (652) | (5488) | (6140) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in due from affiliate | (1) | (1) | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in deferred offering expenses | (301) | (1632) | (1933) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in interest receivable | (81) | (1542) | (1623) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in receivable for paydowns and sales of investments | (44) | (826) | (870) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Increase) decrease in other assets | (2) | (44) | (46) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in current tax liability | 139 |  | 139 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in tax compliance payable | 24 | 465 | 489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in interest payable | 0 | 5 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in offering expense payable to Operating Manager | 552 | 2793 | 3345 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in organizational expense payable to Operating Manager | 319 | 1732 | 2051 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in Performance Fee payable | 15 | 415 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in Management Fee payable | 20 | 174 | 194 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease) in other accrued expenses and liabilities | 16 | 3362 | 3378 |
| Net cash provided by (used in) operating activities | $(16572) | $(310351) | $(326923) |
| Cash flows from financing activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of Shares (net of capital subscriptions received in advance) | $17468 | 349303 | $366771 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on reverse repurchase agreements | (11029) | (208944) | (219973) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from reverse repurchase agreements | 11029 | 208944 | 219973 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on sale-buyback transactions | (2196) | (41608) | (43804) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale-buyback transactions | 2196 | 41608 | 43804 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs paid | (11) | (211) | (222) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from notes payable and other secured borrowings | 33 | 621 | 654 |
| Net cash provided by (used in) financing activities | $17490 | $349713 | $367203 |
| Net increase (decrease) in cash | $918 | $39362 | $40280 |
| Cash, beginning of period |  |  |  |
| Cash, end of period | $918 | $39362 | $40280 |
| Supplemental disclosure of cash flow information: |  |  |  |
| Interest paid during the period | $12 | $239 | $251 |
| Tax expenses paid during the period | $7 | $36 | $43 |

---

A zero balance may reflect actual amounts rounding to less than one thousand.

The accompanying notes are part of these combined audited financial statements.

------

#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Combined Condensed Schedule of Investments as of December 31, 2025

#### (Amounts in thousands, except share amounts)

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series I | Series I | Series I | Series II | Series II | Series II | PIMCO Asset-Based Lending Company<br> LLC | PIMCO Asset-Based Lending Company<br> LLC | PIMCO Asset-Based Lending Company<br> LLC |
| Description | Principal Amount<br> / Shares | Fair Value | % of Net<br> Assets | Principal Amount<br> / Shares | Fair Value | % of Net<br> Assets | Principal Amount<br> / Shares | Fair Value | % of Net<br> Assets |
|  Investments, at fair value\*<sup>(a)</sup> |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Asset Backed Securities |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Auto Loans |  | $97 | 0.58% |  | $1838 | 0.58% |  | $1935 | 0.58% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Asset Backed Securities (cost of $96; $1,811; $1,907 respectively) |  | $97 | 0.58% |  | $1838 | 0.58% |  | $1935 | 0.58% |
| &nbsp;&nbsp;&nbsp;&nbsp; Consumer Loans |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Loans |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PAL CL Trust 1, 8.50%, 3/22/2034<sup>(b)</sup> | $1982 | $1871 | 11.16% | $37538 | $35446 | 11.14% | $39520 | $37317 | 11.14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Consumer Loans (cost of $1,892; $35,844; $37,736 respectively) |  | $1871 | 11.16% |  | $35446 | 11.14% |  | $37317 | 11.14% |
| &nbsp;&nbsp;&nbsp;&nbsp; Common Stock |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Origination Platforms |  | $23 | 0.14% |  | $445 | 0.14% |  | $468 | 0.14% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Common Stock (cost of $23; $445; $468 respectively) |  | $23 | 0.14% |  | $445 | 0.14% |  | $468 | 0.14% |
| &nbsp;&nbsp;&nbsp;&nbsp; Preferred Stock |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Origination Platforms |  | $226 | 1.34% |  | $4274 | 1.34% |  | $4500 | 1.34% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Preferred Stock (cost of $227; $4,292; $4,519 respectively) |  | $226 | 1.34% |  | $4274 | 1.34% |  | $4500 | 1.34% |
| &nbsp;&nbsp;&nbsp;&nbsp; Residential Loans |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. Cooper, 2.04%-8.79%, 11/25/2060<sup>(c)</sup> |  | $1331 | 7.93% |  | $25215 | 7.92% |  | $26546 | 7.92% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PAL RL Trust 1, 9.12%-9.36%, 12/1/2026-4/1/2027<sup>(c)</sup> |  | $1779 | 10.60% |  | $33691 | 10.59% |  | $35470 | 10.59% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Residential Loans |  | $665 | 3.96% |  | $12595 | 3.96% |  | $13260 | 3.96% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Residential Loans (cost of $3,770; $71,651; $75,421 respectively) |  | $3775 | 22.49% |  | $71501 | 22.47% |  | $75276 | 22.47% |
| &nbsp;&nbsp;&nbsp;&nbsp; Securitized Loans |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consumer Loans |  | $100 | 0.60% |  | $1898 | 0.60% |  | $1998 | 0.60% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-Consumer |  | $150 | 0.90% |  | $2849 | 0.90% |  | $2999 | 0.90% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; FNMA Mortgage Pool, 5.00%-6.00%, 4/1/2053-12/1/2055 |  | $1486 | 8.86% |  | $28159 | 8.85% |  | $29645 | 8.85% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Securitized Loans (cost of $1,734; $32,850; $34,584 respectively) |  | $1736 | 10.36% |  | $32906 | 10.35% |  | $34642 | 10.35% |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-Term Investments |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repurchase Agreements<sup>(k)</sup> |  | $4212 | 25.12% |  | $79788 | 25.07% |  | $84000 | 25.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Short-Term Investments (cost of $4,212; $79,788; $84,000 respectively) |  | $4212 | 25.12% |  | $79788 | 25.07% |  | $84000 | 25.07% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments at fair value (cost of $11,954; $226,681; $238,635 respectively) |  | $11940 | 71.19% |  | $226198 | 71.09% |  | $238138 | 71.09% |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments in affiliates |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aircraft Loans |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Phantom Long Ridge Offshore LP Non-US<sup>(d)</sup> | 84217 | $84 | 0.50% | 1595432 | $1595 | 0.50% | 1679649 | $1679 | 0.50% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Auto Loans |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cavendish LLC<sup>(e)</sup> | 308324 | $308 | 1.83% | 5840998 | $5837 | 1.83% | 6149322 | $6145 | 1.83% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diversified ABF |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PIMCO ABS and Short-Term Investments Portoflio<sup>(f)</sup> | 127360 | $1508 | 8.99% | 2412750 | $28567 | 8.98% | 2540110 | $30075 | 8.98% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Origination Platforms |  |  |  |  |  |  |  |  |  |
| Cavendish FF, LLC, Series I<sup>(g)</sup> | 6803 | $7 | 0.04% | 128872 | $130 | 0.04% | 135675 | $137 | 0.04% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal Loans |  |  |  |  |  |  |  |  |  |
| MPL Aggregator XII LTD<sup>(h)(i)</sup> | 266677 | $269 | 1.60% | 5052029 | $5097 | 1.60% | 5318706 | $5366 | 1.60% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; US Residential Real Estate - Mix |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PIMCO Private Mortgage Opportunities Fund Onshore, L.P.<sup>(j)</sup> | 2549 | $2606 | 15.55% | 48285 | $49363 | 15.51% | 50834 | $51969 | 15.51% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments in affiliates at fair value (cost of $4,772; $89,374; $94,146 respectively) |  | $4782 | 28.50% |  | $90589 | 28.46% |  | $95371 | 28.46% |

---

\* Only issuers that exceed 5% of net assets are presented. 

The accompanying notes are part of these combined audited financial statements.

------

#### **Table of Contents**
(a) All investments are U.S. domiciled, unless otherwise indicated.

(b) Represents personal loans held through a joint venture between the Company and multiple funds affiliated with the Operating Manager.

(c) Pool of residential fix-and-flip loans acquired through a domestic common law trust, with a federally chartered bank serving as trustee. The Company accrues interest income at the pool level at the rate indicated, which represents estimated loan interest net of certain service provider fees.

(d) Represents aircraft loans held through a joint venture between the Company and multiple funds affiliated with the Operating Manager. Loan interest rates range from 6.78% to 6.91% and loan maturity dates range from 12/13/2033 to 12/18/2037. Through these investments in an affiliate, both Series and the Company indirectly owned other investments in affiliates. In aggregate, each Series proportional share of the market value of individual issuers does not exceed 5% of the respective Series' net assets.

(e) Represents auto loans held through a joint venture between the Company and multiple funds affiliated with the Operating Manager. Weighted average interest rate is 15.94% and weighted average maturity is 57 months. Through these investments in an affiliate, both Series and the Company indirectly owned other investments in affiliates. In aggregate, each Series proportional share of the market value of individual issuers that exceed 5% of the respective Series' net assets were as follows:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | | | Series I | Series I | Series I | Series II | Series II | Series II |
| Auto Loans | Interest Rate | Maturity | Principal | Market Value | Proportional<br>Share of Market<br>Value | Principal | Market Value | Proportional<br>Share of<br>Market Value |
|  Project Cavendish | 6.20% | 12/31/2033 | $1802105 | $1879855 | $1895 | $1802105 | $1879855 | $35890 |

---

(f) Affiliated to the Company. As of December 31, 2025, Series I owned 0.02% and Series II owned 0.35% of the PIMCO ABS and Short-Term Investments Portfolio. Through these investments in an affiliate, both Series and the Company indirectly owned other investments in affiliates. In aggregate, each Series proportional share of the market value of individual issuers does not exceed 5% of the respective Series' net assets.

(g) Represents auto loans held through a joint venture between the Company and multiple funds affiliated with the Operating Manager. Weighted average interest rate is 14.40% and weighted average maturity is 73 months. Through these investments in an affiliate, both Series and the Company indirectly owned other investments in affiliates. In aggregate, each Series proportional share of the market value of individual issuers does not exceed 5% of the respective Series' net assets.

(h) Investment is Cayman Islands domiciled.

(i) Represents personal loans held through a joint venture between the Company and multiple funds affiliated with the Operating Manager. Weighted average interest rate is 12.29% and weighted average maturity is 12/10/2027. Through these investments in an affiliate, both Series and the Company indirectly owned other investments in affiliates. In aggregate, each Series proportional share of the market value of individual issuers does not exceed 5% of the respective Series' net assets.

(j) Affiliated to the Company. As of December 31, 2025, Series I owned 1.07% and Series II owned 20.19% of the PIMCO Private Mortgage Opportunities Fund Onshore, L.P. Through these investments in an affiliate, both Series and the Company indirectly owned other investments in affiliates. In aggregate, each Series proportional share of the market value of individual issuers does not exceed 5% of the respective Series' net assets.

#### Borrowings and other Financing Transactions summary

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| (k) Repurchase Agreements | (k) Repurchase Agreements | (k) Repurchase Agreements | (k) Repurchase Agreements | (k) Repurchase Agreements | (k) Repurchase Agreements | (k) Repurchase Agreements | (k) Repurchase Agreements |
| Series I |  |  |  |  |  |  |  |
| Counterparty | Lending Rate | Maturity Date | Principal Amount | Collateralized By | Collateral<br> (Received) | Repurchase<br> Agreements,<br> at Value | Repurchase<br> Agreement Proceeds<br> to be Received |
|  BofA Securities, Inc. | 3.900% | 1/2/2026 | $4235 | U.S. Government Debt | $(4263) | $4212 | $4212 |
|  Total Repurchase Agreements |  |  |  |  | $(4263) | $4212 | $4212 |
| Series II |  |  |  |  |  |  |  |
| Counterparty | Lending Rate | Maturity Date | Principal Amount | Collateralized By | Collateral<br> (Received) | Repurchase<br> Agreements,<br> at Value | Repurchase<br> Agreement Proceeds<br> to be Received |
|  BofA Securities, Inc. | 3.900% | 1/2/2026 | $80223 | U.S. Government Debt | $(80752) | $79788 | $79797 |
|  Total Repurchase Agreements |  |  |  |  | $(80752) | $79788 | $79797 |

---

The following is a summary by counterparty of the market value of Borrowings and Other Financing Transactions and collateral (received)/pledged as of December 31, 2025:

#### Global Master Repurchase Agreement

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Repurchase Agreement Proceeds to be<br>Received | Repurchase Agreement Proceeds to be<br>Received | Repurchase Agreement Proceeds to be<br>Received | Total Borrowings and Other Financing<br>Transactions | Total Borrowings and Other Financing<br>Transactions | Total Borrowings and Other Financing<br>Transactions | Collateral (Received)/Pledged | Collateral (Received)/Pledged | Collateral (Received)/Pledged | Net Exposure<sup>(1)</sup> | Net Exposure<sup>(1)</sup> | Net Exposure<sup>(1)</sup> |
| Counterparty | Series I | Series II | PIMCO Asset-<br>Based Lending<br>Company LLC | Series I | Series II | PIMCO Asset-<br>Based Lending<br>Company LLC | Series I | Series II | PIMCO Asset-<br>Based Lending<br>Company LLC | Series I | Series II | PIMCO Asset-<br>Based Lending<br>Company LLC |
|  Bank of Scotland | $4212 | $79797 | $84009 | $4212 | $79788 | $84000 | $(4263) | $(80752) | $(85015) | $(51) | $(964) | $(1015) |

---

(1) Net Exposure represents the net receivable/(payable) that would be due from/to the counterparty in the event of a default. Exposure from the Borrowings and Other Financing Transactions can only be netted across transactions governed under the same master across transactions governed under the same master agreements with the same legal entity.

The accompanying notes are part of these combined audited financial statements.

------

#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Combined Condensed Schedule of Investments as of December 31, 2025

#### (in thousands)

#### Financial Derivative Instruments: Exchange-Traded or Centrally Cleared Summary
The following is a summary of the fair value of exchange-traded or centrally cleared financial derivative instruments as of December 31, 2025:

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value | Derivative assets, at fair value |
|  |  |  | Series I | Series I | Series II | Series II | PIMCO Asset-Based<br> Lending Company LLC | PIMCO Asset-Based<br> Lending Company LLC |
| Contract name | Type | Maturity | Fair Value | % of Net<br> Assets | Fair Value | % of Net<br> Assets | Fair Value | % of Net<br> Assets |
|  OIS, Notional amount of $2,462, $46,648 and $49,110, respectively | Overnight Index<br> Swaps | 9/17/2027 -<br> 12/17/2027 | $2 | 0.01% | $30 | 0.01% | $32 | 0.01% |
|  Total Derivative assets |  |  | $2 | 0.01% | $30 | 0.01% | $32 | 0.01% |

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Cash of $48 for Series I, $916 for Series II and $964 for the Company has been pledged as collateral for exchange-traded or centrally cleared financial derivative instruments as of December 31, 2025.

The accompanying notes are part of these combined audited financial statements.

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#### **Table of Contents**

#### PIMCO Asset-Based Lending Company LLC

#### Notes to Combined financial statements

#### (Amounts in thousands, except share and per share amounts, percentages and as otherwise indicated)

#### December 31, 2025
1. Organization

PIMCO Asset-Based Lending Company LLC (together with its subsidiaries, "PALCO", the "Company", "we" or "us") was formed on March 11, 2025 as a Delaware limited liability company. On March 11, 2025, the Company established two registered series of limited liability company interests, PIMCO Asset-Based Lending Company LLC - Series I ("Series I") and PIMCO Asset-Based Lending Company LLC - Series II ("Series II"). Series I and Series II are treated as separate entities for U.S. federal income tax purposes with segregated assets and liabilities. Each Series conducts its business and enters into contracts in its own name to the extent such activities are undertaken with respect to a particular Series and title to the relevant property is held by or for the benefit of, the relevant Series. Under the LLC Act, if certain conditions are met, to the extent the records maintained for a Series account for the assets associated with such Series separately from the other assets of the Company or any other Series, the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to such Series are segregated and enforceable only against the assets of such Series and not against the assets of the Company generally or any other Series. Notwithstanding the foregoing, any agreement or arrangement may be reallocated between the Series in the Company's discretion to reflect the relative benefits and obligations of such arrangements. The Company conducts its operations so that it does not fall within the definition of an "investment company" under the Investment Company Act of 1940, as amended. Pacific Investment Management Company LLC ("PIMCO" or the "Operating Manager") has established the Company as a lending platform that intends to fund, finance and structure Asset-Backed Instruments. "Asset-Backed Instruments" refers to loans and other instruments that are collateralized by, or payable from a stream of payments generated by, a specified pool of real assets, financial assets, insurance assets or other assets.

The Company's objective is to build a diversified portfolio of Asset-Backed Instruments through its wholly or majority-owned subsidiaries. The Company seeks opportunities in Asset-Backed Instruments, focusing on assets outside the traditional corporate and commercial real estate lending markets. The Company's strategy is structured to offer access to differentiated Asset-Backed Instruments, including consumer loans (e.g., student loans, auto loans, credit card receivables and mortgages) and non-consumer loans (e.g., nonperforming loan financing, trade financing, asset-based lending, royalties, small and medium-sized enterprise lending and risk transfer), as well as select platform acquisitions of specialty lenders, servicers, insurers or reinsurers. The Company acquires primarily private income producing assets from the aforementioned areas.

The business strategy of the Company is to acquire loans, mortgages, leases, hard assets, royalties, insurance assets and other forms of credit provision or contractual cash flow. The Company principally seeks to acquire (or otherwise gain exposure to) individual income streams where risk of capital loss is deemed low or in pools of loans where returns adjusted for expected losses are attractive, even under stress scenarios. Over the long term, the returns of the Company's strategy are expected to consist of a combination of capital gains and income.

The Company is conducting a continuous private offering of its limited liability company interests ("Shares") to (i) "accredited investors" (as defined in Regulation D under the Securities Act of 1933, as amended (the "Securities Act")) and (ii) in the case of Shares sold outside of the United States, to persons that are not "U.S. persons" (as defined in Regulation S under the Securities Act) in reliance on exemptions from the registration requirements of the Securities Act. As of December 31, 2025, the Company offers six types of Shares in Series I and seven types of Shares in Series II. For Series I, there are: Anchor I Shares, Anchor II Shares, Anchor II-B Shares, Standard A Shares, Standard B Shares and E Shares (collectively, the "Series I Shares"). For Series II, there are: Anchor I Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares, Standard B Shares and E Shares (collectively, the "Series II Shares").

Shares are offered on a monthly basis at net asset value ("NAV") per Share (generally measured as of the end of the month immediately preceding the date of the allocation of Shares to subscribing shareholders of the Company (the "Shareholders")), plus any applicable upfront commissions and fees payable to the Company's dealer manager, PIMCO Investments LLC (the "Dealer Manager").

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#### **Table of Contents**
The Company may offer additional types of Shares in the future. The share types have different upfront selling commissions and ongoing distribution and shareholder servicing fees.

PIMCO, as an investment adviser registered under the Investment Advisers Act of 1940, as amended, serves as the Operating Manager for the Company on a day-to-day basis subject to the directions of the Company's acquisition committee (the "Acquisition Committee") and to the supervision of the Company's board of directors (the "Board"). The Operating Manager provides certain management, administrative and advisory services to the Company related to funding, financing and/or structuring the Portfolio Assets (including Asset-Backed Instruments); provided, however, that the Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, a committee of the Board, as applicable) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager.

The initial meeting of the Board was held on June 2, 2025. The Company issued V Shares (the "V Shares") of Series I and Series II at the aggregate issue prices of $1 and $1, respectively, to PIMCO GP LXXXII, LLC on March 11, 2025 (date of formation) and Anchor II Shares of Series I and Series II at the aggregate issue prices of $15 and $15, respectively, on July 1, 2025 to affiliated entities of PIMCO. V Shares have special rights and privileges, including entitling the holders thereof to the exclusive right to appoint and remove directors of the Company, increase or decrease the number of directors of the Company and fill any vacancies on the Board. V Shares do not have economic participation in the Company. V Shares are held only by PIMCO GP LXXXII, LLC and/or its affiliates, and are not being offered to other investors. The purchase of Shares in a Series of the Company is an investment only in that particular Series and not an investment in the Company as a whole. The Company may issue additional classes of Shares in its sole discretion for each of its two series: Series I and Series II. The Company commenced operations on July 15, 2025.

2. Significant Accounting Policies

#### Basis of Accounting
The combined financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and are presented in U.S. dollars, which is the Company's functional currency. The Company's fiscal year end is December 31.

The Company's combined financial statements are prepared using the accounting and reporting guidance under Financial Accounting Standards Board Accounting Standards Codification (ASC) 946, Financial Services – Investment Companies.

#### Basis of Presentation
Series I and Series II are treated as separate entities for U.S. federal income tax purposes with segregated assets, liabilities, and expenses. Allocation to each Series is based on attributable investment activity, NAV, or other equitable allocation methodologies as determined by the Operating Manager. These combined financial statements incorporate the assets and liabilities, and results of operations, of the Company as a whole, as well as each Series of interest in the Company. Series I and Series II reflect their pro rata share of assets and liabilities of the Company's wholly-owned subsidiaries on the Combined Statements of Assets and Liabilities. Series I and Series II record their allocable share of profits and losses each month based on their relative ownership of the wholly-owned subsidiaries on the Combined Statements of Operations.

#### Use of Estimates
The preparation of the combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that may affect the reported amounts in the combined financial statements and accompanying notes. Actual results could differ from those estimates.

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#### **Table of Contents**

#### Basis of Consolidation
As provided under Regulation S-X and ASC 946, the Series I, Series II and the Company will generally not consolidate its investment in a company other than a wholly-owned investment company or controlled operating company whose business primarily consists of providing services to the Company. Accordingly, Series I, Series II and the Company combined the results of its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

#### Calculation of NAV
The NAV per Share of each Series is determined by dividing the total assets of the Company (the value of investments, plus cash or other assets) attributable to such Series less the value of any liabilities of such Series, by the total number of Shares outstanding of such Series.

#### Organizational Expenses
Organizational expenses to establish the Company are charged to expense as incurred. These expenses consist primarily of legal fees and other costs of organizing the Company. The Operating Manager may elect to pay certain organizational costs on behalf of the Company and each Series and for which the Company or the Series, as applicable, may reimburse the Operating Manager pursuant to the Expense Support and Conditional Reimbursement Agreement (Note 3) between the Company and Operating Manager. If the Company is dissolved prior to the full reimbursement of the organizational expenses, the Operating Manager shall not seek reimbursement of any remaining amounts upon dissolution. As of December 31, 2025, Series I, Series II and the Company incurred organizational expenses of $0.3 million, $1.7 million and $2.0 million, respectively.

#### Offering Expenses
Offering expenses in connection with the offering of common stock in each Series of the Company are capitalized as a deferred charge and amortized to expense on a straight-line basis over 12 months from July 15, 2025 (commencement of operations). The Operating Manager may elect to pay certain offering expenses of the Company and each Series on the Company's and each Series behalf and for which the Company or the Series, as applicable, may reimburse the Operating Manager pursuant to the Expense Support and Conditional Reimbursement Agreement (Note 3) between the Company and Operating Manager. If the Company is dissolved prior to the full reimbursement of the offering expenses, the Operating Manager shall not seek reimbursement of any remaining amounts upon dissolution. The Offering Expenses incurred shall be recognized as a deferred charge in accordance with ASC 946. As of December 31, 2025, Series I, Series II and the Company had capitalized deferred offering expenses of $0.3 million, $1.6 million and $1.9 million, respectively. As of December 31, 2025, Series I, Series II and the Company has amortized $0.3 million, $1.1 million and $1.4 million, respectively, of these deferred offering expenses.

#### Cash
As of December 31, 2025, cash was comprised of cash at the custodian bank. As of December 31, 2025, Series I, Series II and the Company held $0.9 million, $39.4 million and $40.3 million, respectively, in cash.

#### Fair Value of Investments
The Company applies fair value to all its financial instruments in accordance with ASC Topic 820 - Fair Value Measurement ("ASC Topic 820"). ASC Topic 820 defines fair value, establishes a framework used to measure fair value and requires disclosures for fair value measurements. In accordance with ASC Topic 820, the Company has categorized its financial instruments carried at fair value, based on the priority of the valuation technique, into a three-level fair value hierarchy. Fair value is a market-based measure considered from the perspective of the market participant who holds the financial instrument rather than an entity-specific measure. Therefore, when market assumptions are not readily available, the Company's own assumptions are set to reflect those that management believes market participants would use in pricing the financial instrument at the measurement date.

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#### **Table of Contents**

#### Revenue Recognition
The Company records dividend income and accrues interest income pursuant to the terms of the respective Asset-Backed Instruments, unless, in the case of dividend income, the Company determines that the Asset-Backed Instruments do not have positive earnings in which case such dividend income is treated as a return of capital. In the case of proceeds received from investments in a partnership investment vehicle and limited partnerships, the Company determines the character of such proceeds and records any interest income, dividend income, realized gains or returns of capital accordingly. For the period from March 11, 2025 (date of formation) to December 31, 2025, investment income was comprised of interest income from Asset-Backed Instruments, as well as dividend income from affiliates and cash.

Investments are placed on non-accrual status when it is probable that principal, interest or dividends will not be collected according to contractual terms. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management's judgement. Non-accrual investments are restored to accrual status when past due principal and interest or dividends are paid and, in management's judgement, principal and interest or dividend payments are likely to remain current. The Company may make exceptions to this treatment if a loan has sufficient collateral value and is in the process of collection.

#### Net Realized Gain (Loss) and Net Change in Unrealized Gain (Loss)
Without regard to unrealized gain (loss) previously recognized, realized gains or losses will be measured as the difference between the net proceeds from the sale, repayment, or disposal of an asset and the adjusted cost basis of the asset. Net change in unrealized gain (loss) will reflect the change in investment values during the reporting period, including the reversal of any previously recorded unrealized gain (loss) when gains or losses are realized.

#### Payment In-Kind Interest
The Company may have investments that contain Payment-In-Kind ("PIK") provisions. PIK income, computed at the contractual rate specified in the Company investment agreement, is added to the principal balance of the investment and recorded as PIK interest on the Combined Statements of Operations. The Company prospectively ceases recognition of PIK income and the associated principal balance if such amounts and balances are deemed to be doubtful of collection. For investments with PIK income, the Company calculates income accruals based on the principal balance including any PIK.

#### General and Administrative Expenses
All costs associated with consummated investments are included in the cost of such investments. Broken deal expenses incurred in connection with investment transactions which are not successfully consummated are expensed as a component of general and administrative expenses on the Combined Statements of Operations. In addition, valuation, insurance, filing, research, consulting, subscriptions, directors' out-of-pocket expenses and other costs, are included as components of general and administrative expenses on Combined Statements of Operations and other accrued expenses and liabilities on the Combined Statement of Assets and Liabilities.

#### Legal Expense
Legal expenses are primarily for legal guidance related to organizational, reporting, investments, financing, co-investment matters and Board member advice. These expenses are included as general and administrative expenses on the Combined Statements of Operations and other accrued expenses and liabilities on the Combined Statement of Assets and Liabilities.

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#### **Table of Contents**

#### Derivatives
The Company recognizes all derivative instruments as assets or liabilities at fair value in its Combined financial statements. The Company does not utilize hedge accounting with respect to derivative instruments and as such, the Company recognizes its derivative instruments at fair value with changes included in net change in unrealized gain (loss) on derivatives on the Combined Statements of Operations.

Derivative instruments are measured in terms of the notional contract amount and derive their value based upon one or more underlying instruments. Derivative instruments are subject to various risks similar to non-derivative instruments, including market, credit, liquidity, interest rate, foreign currency and operational risks. The Company manages these risks on an aggregate basis as part of its risk management process. The derivatives may require the Company to pay or receive an upfront fee or premium. These upfront fees or premiums are carried forward as cost or proceeds to the derivatives.

The Company enters into various swap contracts as part of its investment strategies. Cash flows are exchanged based on the underlying assets or index of the swap. The terms of swap contracts can vary greatly. Swap agreements are carried at fair value in the accompanying Combined Statement of Assets and Liabilities and changes in fair value are reflected in the accompanying Combined Statements of Operations as net change in unrealized gain (loss) on derivatives. Any cash collateral amounts posted to or received from the counterparty to cover collateral obligations under the terms of the swap contracts are included in "Deposits with or from counterparty" on the Company's Combined Statement of Assets and Liabilities.

#### Income Taxes
Series I has elected to be taxed as a corporation for U.S. federal income tax purposes. Series I is liable for income taxes, if any, on its net taxable income.

Series II operates so that it will qualify to be treated as a partnership for U.S. federal income tax purposes under the Internal Revenue Code and not a publicly traded partnership treated as a corporation. As such, it will not be subject to any U.S. federal, state and/or local income taxes. In any year, it is possible that Series II will not meet the qualifying income exception, which would result in Series II being treated as a publicly traded partnership taxed as a corporation, rather than a partnership. If Series II does not meet the qualifying income exception, the holders of interest in Series II would then be treated as stockholders in a corporation, and the Series II would become taxable as a corporation for U.S. federal income tax purposes. In such case, Series II would be required to pay income tax at corporate rates on its net taxable income. In addition, Series II holds interests in Portfolio Assets, through subsidiaries that are treated as corporations for U.S. or non-U.S. tax purposes and therefore may be subject to current and deferred U.S. federal, state and/or local income taxes at the subsidiary level.

Deferred taxes are provided for the effects of potential future tax liabilities in future years resulting from differences between the tax basis of an asset and liability and its reported valuation in the accompanying combined financial statements. Income taxes for both Series I and Series II are accounted for under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the combined financial statements. Under this method, deferred tax assets and liabilities are determined on the temporary differences in the basis of assets and liabilities for income tax and financial reporting purposes using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in the Combined Statements of Operations in the period that includes the enactment date. For a particular tax-paying component of an entity and within a particular tax jurisdiction, deferred tax assets and liabilities are offset and presented as a single amount within prepaid expenses and other assets or other accrued expenses and liabilities, as applicable, in the accompanying Combined Statement of Assets and Liabilities.

Both Series I and Series II recognize the tax benefits of uncertain tax positions only where the position is "more likely than not" to be sustained assuming examination by tax authorities. Both Series I and Series II review and evaluate tax positions in their major jurisdictions and determine whether or not there are uncertain tax positions that require financial statement recognition. The reserve for uncertain tax positions is recorded in other accrued expenses and liabilities, as applicable, in the accompanying Combined Statement of Assets and Liabilities. Based on this review, both Series I and Series II have determined the major tax jurisdictions to be where both Series I and Series II are organized, where both Series I and Series II hold interests in Portfolio Assets, and where the Operating Manager is located; however, no reserves for uncertain tax positions were recorded for Series I and Series II for the period from March 11, 2025 (date of formation) to December 31, 2025. Both Series I and Series II are not aware of any tax positions

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#### **Table of Contents**
for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months. Generally, both Series I and Series II's returns may be subject to examination for a period of three to five years from when they are filed under varying statutes of limitations. For the period from March 11, 2025 (date of formation) to December 31, 2025, there were tax provisions of $65, $15 and $80 for Series I, Series II and the Company, respectively.

#### New Accounting Pronouncement
In this reporting period, the Company adopted FASB Accounting Standards Update 2023-09, Income Taxes (Topic 740) – Improvement to Income Tax Disclosures (ASU 2023-09), which requires enhanced disclosure, disaggregated by jurisdiction, on income taxes paid. Adoption of the new standard impacted financial statement disclosures only and did not affect the Company's financial position or the results of its operations. For the period covered by this Annual Report, the Company did not pay any material income taxes in foreign jurisdictions.

3. Related Party Transactions and Agreements

Operating Agreement

Pursuant to the Amended and Restated Operating Agreement, dated October 1, 2025, with the Operating Manager (as further amended, restated, supplemented or otherwise modified from time to time, the "Operating Agreement"), the Operating Manager is responsible for sourcing, evaluating and monitoring the Company's investment opportunities and making recommendations to the Company related to the acquisition, management, financing and disposition of the Company's assets, in accordance with the Company's investment objectives, guidelines, policies and limitations. The Operating Manager or an affiliate may rebate, waive or reduce the management fee charged to certain shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be effected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the shareholder or by way of rebate to the relevant shareholder's account. For the period from March 11, 2025 (date of formation) to December 31, 2025, there were rebates of $4, $143 and $147 for Series I, Series II and the Company, respectively. For the period from March 11, 2025 (date of formation) to December 31, 2025, there were waivers of $0, $215 and $215 for Series I, Series II and the Company, respectively.

Pursuant to the Operating Agreement, the Operating Manager is entitled to receive a management fee (the "Management Fee"). The Management Fee is payable monthly in arrears in an amount equal to (i) 0.50% per annum of the month-end NAV attributable to the Anchor I Shares and Anchor III Shares; (ii) 0.75% per annum of the month-end NAV attributable to the Anchor II Shares and Anchor II-B Shares; and 1.25% per annum of the month-end NAV attributable to Standard A Shares and Standard B Shares; provided that this Management Fee is reduced by any applicable Special Fees (as defined below); provided, however, that this Management Fee is not reduced for any Other Fees (as described in this Annual Report). In calculating the Management Fee, the Company uses NAV before giving effect to accruals for the Management Fee, Performance Fee (as defined below), combined annual distribution fee and shareholder servicing fee or distributions payable on the Shares. E Shares are not subject to the Management Fee.

The Management Fee is payable by the Company and may, in the Operating Manager's discretion, be paid in whole or in part by the Company's subsidiaries. Such payments do not affect the total combined management fee expense.

100% of any net consulting (including management consulting) or monitoring fees (including any early termination fee or acceleration of any such management consulting fee on a one-time basis that is approved by the Board), advisory fees related to the negotiation of the structuring of a Portfolio Asset (other than debt investments or investments with respect to which the Operating Manager does not exercise direct control with respect to the decision to engage the services giving rise to the relevant fees, costs and expenses) and similar fees (including bridge financing fees), whether in cash or in kind, including options, warrants and other non-cash consideration paid to the Operating Manager or any of its affiliates or any employees of the foregoing in connection with actual or contemplated acquisitions or investments (and allocable to the Company) (collectively, "Special Fees") that are allocable to those Shareholders who bear Management Fees, are applied to reduce the Management Fees paid by such management fee-bearing Shareholders.

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#### **Table of Contents**
For the period from March 11, 2025 (date of formation) to December 31, 2025, the Operating Manager earned gross Management Fees of $23, $536 and $559 from Series I, Series II and the Company, respectively, with no Special Fees offsets.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to be entitled to receive a performance fee (the "Performance Fee") equal to:

(i) First, if the total return with respect to Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period, and (ii) the Loss Carryforward Amount (any such excess, "Excess Profits"), 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 12.5% for Standard A and Standard B Shares, 5.0% for Anchor I Shares and Anchor III Shares, and 7.5% for Anchor II Shares and Anchor II-B Shares of the sum of (x) the Hurdle Amount with respect to such type of Shares for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause (any such amount, the "Catch-Up"); and

(ii) Second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits for Standard A Shares and Standard B Shares, 5.0% for Anchor I Shares and Anchor III Shares of such remaining Excess Profits, and 7.5% of such remaining Excess Profits for Anchor II Shares and Anchor II-B Shares.

E Shares are not subject to the Performance Fee.

For the period from March 11, 2025 (date of formation) to December 31, 2025, the Operating Manager earned Performance Fees of $15, $415 and $430 Series I, Series II and the Company, respectively.

Dealer Manager Agreement

The Dealer Manager may receive a dealer manager fee up to 3.5% of the transaction price of the Anchor I Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares and Standard B Shares.

For the period from March 11, 2025 (date of formation) to December 31, 2025, the Dealer Manager was entitled to receive a distribution and servicing fee from the Company or its affiliates in the amount of 0.75% per annum of the aggregate NAV for the Anchor II-B Shares and Standard B Shares, in each case, payable monthly. However, the Dealer Manager has waived the distribution and servicing fee effective from October 1, 2025 until such date as determined in its sole discretion. In addition, notwithstanding the ongoing waiver, on March 4, 2026, the Company and the Dealer Manager agreed to an increase in the distribution and servicing fees for Anchor II-B Shares and Standard B Shares from 0.75% to 0.85% per annum of the outstanding Anchor II-B Shares and Standard B Shares.

The Dealer Manager anticipates that all or a portion of selling commissions and dealer manager fees will be reallowed to participating broker-dealers. The E Shares and V Shares will not incur any upfront selling costs or ongoing servicing costs.

For the period from March 11, 2025 (date of formation) to December 31, 2025, Series I, Series II and the Company did not incur any distribution fees, shareholder servicing fees or dealer manager fees.

Special Fees

Various affiliates of the Operating Manager are potentially involved in transactions with the Company's investments in Portfolio Assets, and whereby affiliates of the Operating Manager may earn fees in, including but not limited to, structuring, underwriting, arrangement, placement, syndication, advisory or similar services (collectively, "Capital Solution" services).

For the period from March 11, 2025 (date of formation) to December 31, 2025, no fees were paid by the Company's Portfolio Assets to affiliates of the Operating Manager for Capital Solution services.

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Related Party Professional Fees

Company expenses may be paid to service providers owned by, employed by or otherwise related to the Company, the Operating Manager, affiliates and/or their respective personnel ("Related Party Professional Fees"). Related Party Professional Fees do not offset Management Fees. For the period from March 11, 2025 (date of formation) to December 31, 2025, Series I paid $5, Series II paid $185 and the Company paid $190 in Related Party Professional Fees.

Company Expense Support and Conditional Reimbursement Agreement

As discussed in Note 2, the Operating Manager may elect to pay certain of the Company's expenses, including certain organizational and offering expenses (the "Organizational and Offering Expenses") on the Company's behalf (the "Expense Support").

The Company's right to receive an Expense Support shall be an asset of the Company upon the Operating Manager's commitment in writing to pay the Expense Support. Any Expense Support that the Operating Manager has committed to pay must be paid by the Operating Manager to the Company in any combination of cash or other immediately available funds no later than 45 days after such commitment was made in writing, and/or offset against the amounts due from the Company to the Operating Manager or its affiliates.

To the extent an Expense Support is made, following any calendar month in which the Specified Expenses (as defined below) are below 0.75% of the Company's net assets on an annualized basis, the Company shall reimburse the Operating Manager, fully or partially, for the Expense Support, but only if and to the extent that Specified Expenses plus any Reimbursement Payments (as defined below) do not exceed 0.75% of the Company's net assets at the end of each calendar month on an annualized basis, until such time as all Expense Support made by the Operating Manager to the Company within three years prior to the last business day of such calendar month have been reimbursed. Any payments required to be made by the Company in the prior sentence shall be referred to herein as a "Reimbursement Payment."

"Specified Expenses" is defined to include all expenses incurred in the business of the Company with the exception of (i) the management fee, (ii) the performance fee, (iii) the combined annual distribution fees and shareholder servicing fees of the Company and the Company's Related Acquisition Vehicles, (iv) the dealer manager fees (including selling commissions), (v) expenses related to any assets acquired by the Company and the Company's Related Acquisition Vehicles, including, without limitation, brokerage costs or other acquisition-related out-of-pocket expenses (regardless of whether the transactions are consummated), (vi) ordinary corporate operating expenses of the Company and the Company's Related Acquisition Vehicles, (vii) interest expenses, commitment fees, or other expenses related to any leverage incurred by the Company, (viii) taxes, (ix) certain insurance costs, (x) Organizational and Offering. Expenses, (xi) certain non-routine items (as determined in the sole discretion of the Operating Manager) and (xii) extraordinary expenses (as determined in the sole discretion of the Operating Manager).

Subject to the limitations set forth above, the Operating Manager in its sole discretion included certain ordinary operating expenses in Specified Expenses and, as a result, voluntarily impacted the amount the Company may reimburse the Operating Manager in current and future periods.

For the period from March 11, 2025 (date of formation) to December 31, 2025, the Operating Manager agreed to provide Expense Support of $0.6 million, $5.0 million and $5.6 million for expenses incurred by Series I, Series II and the Company, respectively. As of December 31, 2025, Series I, Series II and the Company had no outstanding amounts payable to the Operating Manager related to expense support reimbursements.

The Expense Support and Conditional Reimbursement Agreement may require the Company to repay the Operating Manager for previously waived reimbursement of expense payments under certain circumstances. The previously waived expenses are potentially subject to repayment by the Company, if at all, within a period not to exceed three years from the date of the relevant waiver.

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The below table breaks out the year in which expense support provided by the Operating Manager to Series I, Series II and the Company, respectively, expires subject to the three-year rolling window.

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Expires by December 31, 2025 | Expires by December 31, 2025 | Expires by December 31, 2025 | Expires by December 31, 2026 | Expires by December 31, 2026 | Expires by December 31, 2026 | Expires by December 31, 2027 | Expires by December 31, 2027 | Expires by December 31, 2027 | Expires by December 31, 2028 | Expires by December 31, 2028 | Expires by December 31, 2028 |
| Series I | Series II | PIMCO Asset-Based<br>Lending Company LLC | Series I | Series II | PIMCO Asset-Based<br>Lending Company LLC | Series I | Series II | PIMCO Asset-Based<br>Lending Company LLC | Series I | Series II | PIMCO Asset-Based<br>Lending Company LLC |
| $- | $- | $- | $- | $- | $- | $- | $- | $- | $652 | $5488 | $6140 |

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Investment Transactions

In connection with its investment activities, the Company may, from time to time, engage in certain transactions including purchases and sales from or with affiliates of the Operating Manager. For the period from March 11, 2025 (date of formation) to December 31, 2025, the Company purchased $95.4 million of investments in affiliates of the Operating Manager.

On November 26, 2025, the Company entered into an uncommitted unsecured line of credit (the "Line") with PIMCO Asset Based Lending Trust (USD) 1 (the "Fund"). Under the Line, the aggregate borrowing amount is $1.0 million (the "Line Amount") , which may be increased from time to time up to a maximum aggregate amount of $20.0 million in the Company's sole discretion, subject to the terms of the agreement (the "Line of Credit Agreement"). The Line has a 12 month maturity, subject to extension, as set forth in the Line of Credit Agreement. As of December 31, 2025, the Line had unfunded commitments of $0.1 million, $0.9 million and $1.0 million, from Series I, Series II and the Company, respectively.

Investments in Affiliates held at NAV

The Company invests in Cavendish LLC, Cavendish FF, LLC, Series I, PIMCO ABS and Short-Term Investments Portfolio, MPL Aggregator XVII Ltd and PIMCO Private Mortgage Opportunities Fund Onshore, L.P. These investments can be redeemed at any time, with the exception of PIMCO Private Mortgage Opportunities Fund Onshore, L.P., which can only be redeemed monthly.

4. Borrowings

The following disclosures contain information on the Company's ability to lend or borrow cash or securities, which may be viewed as borrowing or financing transactions by the Company.

#### Repurchase Agreements
Under the terms of a typical repurchase agreement, the Company purchases an underlying debt obligation (collateral) subject to an obligation of the seller to repurchase, and the Company to resell, the obligation at an agreed-upon price and time. In an open maturity repurchase agreement, there is no pre-determined repurchase date and the agreement can be terminated by the Company or counterparty at any time. The underlying securities for all repurchase agreements are held by the Company's custodian or designated subcustodians (in the case of tri-party repurchase agreements) and in certain instances will remain in custody with the counterparty. Traditionally, the Company has used bilateral repurchase agreements wherein the underlying securities will be held by the Company's custodian. The market value of the collateral must be equal to or exceed the total amount of the repurchase obligations, including interest. Repurchase agreements, if any, including accrued interest, are included on the Combined Statement of Assets and Liabilities. Interest earned is recorded as a component of interest income on the Combined Statements of Operations. In periods of increased demand for collateral, the Company may pay a fee for the receipt of collateral, which may result in interest expense to the Company. Refer to the Combined Condensed Schedule of Investments for the repurchase agreements held as of December 31, 2025.

#### Reverse Repurchase Agreements
The Company may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Company delivers a security in exchange for cash to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed upon price and date. The Company is entitled to receive principal and interest payments, if any, made on the security delivered to the counterparty during the term of the agreement. Cash received in exchange for securities delivered plus accrued interest payments to be

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#### **Table of Contents**
made by the Company to counterparties is reflected as a liability on the Combined Statement of Assets and Liabilities. Interest payments made by the Company to counterparties are recorded as a component of interest expense on the Combined Statements of Operations. In periods of increased demand for the security, the Company may receive a fee for use of the security by the counterparty, which may result in interest income to the Company. The Company will segregate assets determined to be liquid by the Operating Manager or will otherwise cover its obligations under reverse repurchase agreements. The Company did not hold any reverse repurchase agreements as of December 31, 2025.

#### Sale-Buybacks
The Company may enter into financing transactions referred to as 'sale-buybacks.' A sale-buyback transaction consists of a sale of a security by the Company to a financial institution, the counterparty, with a simultaneous agreement to repurchase the same or substantially the same security at an agreed-upon price and date. The Company is not entitled to receive principal and interest payments, if any, made on the security sold to the counterparty during the term of the agreement. The agreed-upon proceeds for securities to be repurchased by the Company are reflected as a payable net of the price drop on the Combined Statement of Assets and Liabilities. Foregone interest and inflationary income adjustments, if any, are recorded as components of interest income on the Combined Statements of Operations. Net interest payments based upon negotiated financing terms made between the Company and counterparties are recorded as a component of interest expense on the Combined Statements of Operations. In periods of increased demand for the security, the Company may receive a fee for use of the security by the counterparty, which may result in interest income to the Company. The Company will segregate assets determined to be liquid by the Operating Manager or will otherwise cover its obligations under sale-buyback transactions. The Company did not hold any sale-buy backs as of December 31, 2025.

#### Notes Payable
The Company's outstanding debt obligations as of December 31, 2025, were as follows:

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| | | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Aggregated Principal Committed | Aggregated Principal Committed | Aggregated Principal Committed | Outstanding Principal | Outstanding Principal | Outstanding Principal | Unused Portion | Unused Portion | Unused Portion | Carrying Value | Carrying Value | Carrying Value | Fair Value<sup>(1)</sup> | Fair Value<sup>(1)</sup> | Fair Value<sup>(1)</sup> |
|  | Series I | Series II | PIMCO Asset-<br> Based Lending<br> Company LLC | Series I | Series II | PIMCO Asset-<br> Based Lending<br> Company LLC | Series I | Series II | PIMCO Asset-<br> Based Lending<br> Company LLC | Series I | Series II | PIMCO Asset-<br> Based Lending<br> Company LLC | Series I | Series II | PIMCO Asset-<br> Based Lending<br> Company LLC |
|  Promissory Notes | $33 | $627 | $660 | $33 | $627 | $660 | $- | $- | $- | $33 | $621 | $654 | $33 | $621 | $654 |
|  Total | $33 | $627 | $660 | $33 | $627 | $660 | $- | $- | $- | $33 | $621 | $654 | $33 | $621 | $654 |

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(1) The carrying amount outstanding under these debt obligations approximate their fair value as of December 31, 2025.

Promissory Notes

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| | | | |
|:---|:---|:---|:---|
|  | Fair Value | Fair Value | Fair Value |
| Legal Maturity | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC |
|  10/1/2055 | $33 | $621 | $654 |
|  Total | $33 | $621 | $654 |

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The Company has elected the fair value option, or "FVO," for its promissory notes and they are reflected within notes payable on the Company's Combined Statements of Assets and Liabilities. The promissory notes pay interest on the principal balances at a rate of 12.0% per annum. Fair value was estimated based on current rates available to the Company for debt of the same maturities and which would be considered Level 2 in the fair value hierarchy. Change in unrealized gains and losses on the Company's Notes Payable are included in Unrealized gains (losses) on Notes Payable, at fair value, on the Combined Statement of Operations.

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#### **Table of Contents**

#### Lines of Credit
Barclays Facility

On September 9, 2025, Series I and Series II on behalf of PALCO LVS 4 LP, a subsidiary of the Company through Series I and Series II, entered into a TBMA/ISMA Global Master Repurchase Agreement with Barclays Bank PLC ("Barclays"), with PIMCO acting in its own capacity and as manager of the accounts party thereto (the "Barclays Repo Facility"). The Barclays Repo Facility provides for a maximum aggregate purchase price of $5,000 for all PIMCO accounts party thereto. Borrowings under the facility bear interest at the rate defined in the applicable confirmation annex. The facility matures in March 2027. In connection with the Barclays Repo Facility, the Company provided guarantees in favor of Barclays (the "Guarantee Agreement"), under which the Company guarantees all existing and future payment obligations of PALCO LVS 4 LP to Barclays solely arising out of the Barclays Repo Facility. The Company is also liable under the Guarantee Agreement for all fees and out of pocket expenses relating to the enforcement or protection of the rights of Barclays arising thereunder. The Barclays Repo Facility and the Guarantee Agreement contain representations, warranties, covenants, events of default and indemnities that are customary for similar agreements. As of December 31, 2025, the Company had no outstanding repurchase obligations and was in compliance with all covenants under the Barclays Repo Facility and the Guarantee Agreement.

Santander Facility

On December 12, 2025, PALCO LVS 6, a subsidiary of the Company through Series I and Series II, through its fully owned entity, PAL CL Trust 1, a New York common law trust (the "Trust") entered a revolving credit facility with Banco Santander S.A. (the "Santander Facility"). UMB Bank, National Association is the trustee of the Trust. The Santander Facility's maximum borrowing limit is $200,000 with a borrowing buffer of $2,500 as defined in the credit and security agreement. The Company pays an unused fee of 0.40% of the borrowing buffer and an interest rate of SOFR+1.5% on the outstanding principal of the Santander Facility. The maturity date of this facility is December 12, 2026. The Company provides limited guarantees in favor of Banco Santander in accordance with limited guaranty and indemnity agreement. The Trust did not draw down any proceeds from the Santander Facility as of December 31, 2025.

The Company did not have any outstanding borrowings on lines of credit as of December 31, 2025.

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Aggregated Principal Committed | Aggregated Principal Committed | Aggregated Principal Committed | Outstanding Principal | Outstanding Principal | Outstanding Principal | Unused Portion | Unused Portion | Unused Portion |
|  | Series I | Series II | PIMCO<br>Asset-Based<br>Lending<br>Company LLC | Series I | Series II | PIMCO<br>Asset-Based<br>Lending<br>Company LLC | Series I | Series II | PIMCO<br>Asset - Based<br>Lending<br>Company LLC |
|  Santander | $1253 | $23747 | $25000 | $- | $- | $- | $1253 | $23747 | $25000 |
|  Total | $1253 | $23747 | $25000 | $- | $- | $- | $1253 | $23747 | $25000 |

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5. Fair Value Measurement

In accordance with ASC Topic 820, fair value is defined as the price that the Company would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 also establishes a framework for measuring fair value and a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability as of the reporting date.

Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs reflect the Company's own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. Each investment is assigned a level based upon the observability of the inputs which are significant to the overall valuation.

The three-tier hierarchy of inputs is summarized below:

• Level 1 – Quoted prices in active markets for identical investments.

• Level 2 – Other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.).

• Level 3 – Significant unobservable inputs (including the Company's own assumptions in determining the fair value of investments at the reporting date).

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#### **Table of Contents**
The level in the fair value hierarchy within which the fair value measurement is categorized in its entirety is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety. For this purpose, the significance of an input is assessed against the fair value measurement in its entirety. If a fair value measurement uses observable inputs that require significant adjustment based on unobservable inputs, that measurement is a Level 3 measurement. If a fair value measurement uses price data vendors or observable market price quotations, that measurement may be a Level 2 or Level 3 measurement. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability.

Investments in certain funds for which fair value is measured using NAV per share (or its equivalent) as a practical expedient are not categorized within the fair value hierarchy.

The determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be that market data that is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market.

#### Valuation of Investments
The Company's Portfolio Assets are valued at fair value in a manner consistent U.S. GAAP, and ASC Topic 820. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each acquisition while employing a valuation process that is consistently followed. Determinations of fair value involve subjective judgments and estimates.

When making fair value determinations for Portfolio Assets that do not have readily available market prices, the Company considers industry- accepted valuation methodologies, primarily consisting of an income approach and market approach. The income approach derives fair value based on the present value of cash flows that a business or security is expected to generate in the future. The market approach relies upon valuations for comparable public companies, transactions or assets, and includes making judgments about which companies, transactions or assets are comparable. A blend of approaches may be relied upon in arriving at an estimate of fair value, though there may be instances where it is more appropriate to utilize one approach. The Company also considers a range of additional factors that it deems relevant, including a potential sale of the Portfolio Assets, macro and local market conditions, industry information and the relevant Portfolio Assets' historical and projected financial data.

The Board has adopted the Operating Manager's valuation policy as the valuation policy of the Company. At least annually, the Board, including the independent directors, reviews the appropriateness of the Company's valuation policy and guidelines. From time to time, the Board, including the independent directors, may adopt material changes to the valuation policy on occasions in which it has determined or in the future determines that such changes are likely to result in a more accurate reflection of estimated fair value. Any other, non-material, changes may be made by the Company or the Operating Manager.

The following table summarizes the fair value of the Company's investments as of December 31, 2025 (amounts in thousands):

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Series I | Series I | Series I | Series I | Series II | Series II | Series II | Series II | PIMCO Asset-Based Lending Company LLC | PIMCO Asset-Based Lending Company LLC | PIMCO Asset-Based Lending Company LLC | PIMCO Asset-Based Lending Company LLC |
| Description | Level I | Level II | Level III | NAV\* | Level I | Level II | Level III | NAV\* | Level I | Level II | Level III | NAV\* |
| Investments, at fair value |  |  |  |  |  |  |  |  |  |  |  |  |
|  Asset Backed Securities | $- | $- | $97 | $- | $- | $- | $1838 | $- | $- | $- | $1935 | $- |
|  Consumer Loans |  |  | 1871 |  |  |  | 35446 |  |  |  | 37317 |  |
|  Common Stock |  |  | 23 |  |  |  | 445 |  |  |  | 468 |  |
|  Preferred Stock |  |  | 226 |  |  |  | 4274 |  |  |  | 4500 |  |
|  Residential Loans |  | 1331 | 2444 |  |  | 25215 | 46286 |  |  | 26546 | 48730 |  |
|  Securitized Loans |  | 1736 |  |  |  | 32906 |  |  |  | 34642 |  |  |
|  Short-Term Investments |  | 4212 |  |  |  | 79788 |  |  |  | 84000 |  |  |
|  Total Investments, at fair value | $- | $7279 | $4661 | $- | $- | $137909 | $88289 | $- | $- | $145188 | $92950 | $- |
|  Investments in affiliates |  |  |  |  |  |  |  |  |  |  |  |  |
|  Investments in affiliates | $1508 | $- | $2606 | $668 | $28567 | $- | $49363 | $12659 | $30075 | $- | $51969 | $13327 |
|  Total Investments in affiliates | $1508 | $- | $2606 | $668 | $28567 | $- | $49363 | $12659 | $30075 | $- | $51969 | $13327 |
|  **Derivative Assets, at fair value** |  |  |  |  |  |  |  |  |  |  |  |  |
|  Overnight Index Swaps | $- | $2 | $- | $- | $- | $30 | $- | $- | $- | $32 | $- | $- |
|  **Total Derivative Assets, at fair value** | $- | $2 | $- | $- | $- | $30 | $- | $- | $- | $32 | $- | $- |

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\* Investments for which fair value is measured using NAV per Share (or its equivalent) as a practical expedient are not categorized within the fair value hierarchy. The fair value presented in the table is intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Combined Statement of Assets and Liabilities and Combined Statements of Changes in Net Assets. 

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#### **Table of Contents**
Cash at Series I, Series II and the Company include $0.9 million, $39.4 million and $40.3 million, respectively, which are considered Level I Assets.

The below table presents a summary of changes in fair value of Level 3 assets for the period from March 11, 2025 (date of formation) to December 31, 2025 (amounts in thousands):

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| | | | |
|:---|:---|:---|:---|
| Description | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC |
| Balance at March 11, 2025 (date of formation) | $- | $- | $- |
| Purchases | 7605 | 144083 | 151688 |
| Sales | (415) | (7862) | (8277) |
| Accrued Discounts/ (Premiums) | 1 | 24 | 25 |
| Change in unrealized gain (loss) | 76 | 1407 | 1483 |
| Balance as of December 31, 2025 | $7267 | $137652 | $144919 |

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The following table presents quantitative information about the significant unobservable inputs of the Company's Level 3 financial instruments as of December 31, 2025. The table is not intended to be all-inclusive but instead captures the significant unobservable inputs relevant to the Company's determination of fair value (amounts in thousands).

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Level III Fair Value | Level III Fair Value | Level III Fair Value | | | | |
| Asset Type | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC | Valuation Technique | Unobservable Inputs | Input Value(s) | Weighted Average |
| Asset Backed Securities | $97 | $1838 | $1935 | Discounted Cash Flow | Discount Rate | 20.00% - 26.25% | 24.34% |
| Consumer Loans | 1871 | 35446 | 37317 | Discounted Cash Flow | Discount Rate | 8.55% | 8.55% |
| Common Stock | 23 | 445 | 468 | Recent Transaction | Purchase Price | n/a | n/a |
| Preferred Stock | 226 | 4274 | 4500 | Recent Transaction | Purchase Price | n/a | n/a |
| Resdiential Loans | 2444 | 46286 | 48730 | Discounted Cash Flow | Discount Rate | 8.42% - 9.74% | 9.40% |
| Investments in Affiliates | 2606 | 49363 | 51969 | Sum of the Parts | Discount Rate | 5.08% - 24.36% | 6.42% |
| Total | $7267 | $137652 | $144919 |  |  |  |  |

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6. Derivatives

In order to better define its contractual rights and to secure rights that will help the Company mitigate its counterparty risk, the Company may enter into an International Swaps and Derivatives Association, Inc. Master Agreement ("ISDA Master Agreement") or a similar agreement with its derivative counterparties. An ISDA Master Agreement is a bilateral agreement between the Company and a counterparty that governs over-the-counter derivatives, including foreign currency forward contracts, and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of a default (close-out netting) or similar event, including the bankruptcy or insolvency of the counterparty.

For financial reporting purposes, cash collateral that has been pledged to cover obligations of the Company and cash collateral received from the counterparty, if any, is included on the Combined Statements of Assets and Liabilities as "Deposits with or from counterparty." The Company minimizes counterparty credit risk by only entering into agreements with counterparties that it believes to be in good standing and by monitoring the financial stability of those counterparties.

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The following table presents the fair value of the derivative assets of Series I, Series II and the Company as reflected in the Combined Statement of Assets and Liabilities as of December 31, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| Derivative Assets, at fair value | Derivative Assets, at fair value | Derivative Assets, at fair value | Derivative Assets, at fair value | Derivative Assets, at fair value |
|  |  | Fair Value | Fair Value | Fair Value |
| Primary underlying Risk | Derivative | Series I | Series II | PIMCO<br> Asset- Based<br> Lending<br> Company LLC |
| Interest Rate Risk | Overnight Index Swaps | $2 | $30 | $32 |

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The following table presents the gains (losses) recognized on derivatives, by contract type, included in the Combined Statements of Operations for the period from March 11, 2025 (date of formation) to December 31, 2025:

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| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Average Notional / Contracts | Average Notional / Contracts | Average Notional / Contracts | Net Realized gain (loss) in derivatives | Net Realized gain (loss) in derivatives | Net Realized gain (loss) in derivatives | Change in unrealized gain (loss) on derivatives | Change in unrealized gain (loss) on derivatives | Change in unrealized gain (loss) on derivatives |
| Primary underlying Risk | Derivative | Series I | Series II | PIMCO<br>Asset-Based<br>Lending<br>Company LLC | Series I | Series II | PIMCO<br>Asset-Based<br>Lending<br>Company LLC | Series I | Series II | PIMCO<br>Asset-Based<br>Lending<br>Company LLC |
| Interest Rate Risk | Overnight Index Swaps | $1610 | $30492 | $32102 | $- | $- | $- | $0 | $(92) | $(92) |

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7. Commitments & Contingencies

#### Commitments
The Company may enter into commitments to fund investments. As of December 31, 2025, the management team believed that the Company had adequate financial resources to satisfy its unfunded commitments, if any. The fair value of the amounts associated with unfunded commitments to provide funds to portfolio companies are not recorded in the Company's Combined Statement of Assets and Liabilities unless determined to be material. Since these commitments and the associated amounts may expire without being drawn upon, the total commitment amount does not necessarily represent a future cash requirement.

As of December 31, 2025, Series I, Series II and the Company had no unfunded commitments on its investment portfolio.

#### Contingencies
In the normal course of business, the Company enters into contracts that provide a variety of general indemnifications. Any exposure to the Company under these arrangements could involve future claims that may be made against the Company. Currently, no such claims exist or are expected to arise and, accordingly, the Company has not accrued any liability in connection with such indemnifications.

#### Litigation
The Company is not named as a defendant in any material litigation or arbitration proceedings and is not aware of any material litigation or claim pending or threatened against it. The foregoing speaks only as of the date of this report.

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#### **Table of Contents**
8. Shareholders' Equity

#### Equity Issuance
The following table summarizes the total shares transactions during the period March 11, 2025 (date of formation) to December 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Series I | Series I | Series II | Series II | PIMCO Asset-Based Lending Company LLC | PIMCO Asset-Based Lending Company LLC |
|  | Shares | Consideration<br>Amount | Shares | Consideration<br>Amount | Shares | Consideration<br>Amount |
| Anchor I Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 73617 | $751 | 8213773 | $83514 | 8287390 | $84265 |
|  Shares issued under the DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 73617 | $751 | 8213773 | $83514 | 8287390 | $84265 |
|  Anchor II Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 1322512 | $13397 | 8104882 | $81764 | 9427394 | $95161 |
|  Shares issued under the DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 1322512 | $13397 | 8104882 | $81764 | 9427394 | $95161 |
|  Anchor II-B Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 110 | $1 |  | $- | 110 | $1 |
|  Shares issued under DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 110 | $1 |  | $- | 110 | $1 |
|  Anchor III Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares |  | $- | 10000000 | $100000 | 10000000 | $100000 |
|  Shares issued under the DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) |  | $- | 10000000 | $100000 | 10000000 | $100000 |
|  Standard A Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 33060 | $336 | 171436 | $1750 | 204496 | $2086 |
|  Shares issued under DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 33060 | $336 | 171436 | $1750 | 204496 | $2086 |
|  Standard B Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 110 | $1 |  | $- | 110 | $1 |
|  Shares issued under DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 110 | $1 |  | $- | 110 | $1 |
|  E Shares: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 207585 | $2081 | 4274290 | $43245 | 4481875 | $45326 |
|  Shares issued under the DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 207585 | $2081 | 4274290 | $43245 | 4481875 | $45326 |
|  V Shares\*: |  |  |  |  |  |  |
|  Proceeds from issuance of Shares | 40 | $1 | 40 | $1 | 80 | $2 |
|  Shares issued under the DRIP |  |  |  |  |  |  |
|  Shares repurchased or exchanged |  |  |  |  |  |  |
|  Net increase (decrease) | 40 | $1 | 40 | $1 | 80 | $2 |
|  Total net increase (decrease) | 1637034 | $16568 | 30764421 | $310274 | 32401455 | $326842 |

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\* Reflected as "Due from affiliate" on the Combined Statement of Assets and Liabilities.

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#### **Table of Contents**

#### Distribution Reinvestment Plan
The Company adopted a distribution reinvestment plan (the "DRIP") in which cash distributions to Shareholders will automatically be reinvested in additional whole and fractional shares attributable to the type of Shares that a Shareholder owns unless and until an election is made by, or on behalf of, such participating shareholder to withdraw from the DRIP and receive distributions in cash. The number of Shares to be received when distributions are reinvested will be determined by dividing the amount of the distribution, net of any applicable withholding taxes, by the Series' NAV per share as of the end of the prior month. Shares will be distributed in proportion to the Series and types of Shares held by the shareholder under the DRIP. There will be no sales load charges on Shares issued to a Shareholder under the DRIP.

#### Distributions
Beginning February 2026, the Company started paying distributions to its shareholders. The Company intends to declare, accrue and pay distributions on a monthly basis. However, there is no guarantee that Series I, Series II or the Company will pay monthly distributions consistently and at a specific rate, or at all. There were no distributions declared for the period from March 11, 2025 (date of formation) to December 31, 2025.

#### Share Repurchase Program
The Company will conduct a quarterly share repurchase (each, a "Share Repurchase") for up to 5.0% of the aggregate NAV (measured collectively across both Series) of outstanding Shares at a price based on the NAV per Share as of the last calendar day of the quarter prior to the commencement of a Share Repurchase (the "Repurchase Plan"); provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement (as defined below) and applicable securities law. The Company commenced its Share Repurchases beginning February 2026. Due to differential fees (including accrued, but unpaid Performance Fees) and other factors, the NAV of each type of Shares will differ, but all NAV calculations are expected to be based on the joint underlying economic interests of the Company in the assets underlying its portfolio assets.

Until the second anniversary of the Launch Date, Shares requested to be repurchased shall be subject to an early repurchase fee (the "Early Repurchase Fee") of 5.0% of the NAV of the Anchor I Shares, Anchor II Shares, Anchor II-B Shares and Anchor III Shares repurchased.

#### Compensation of Directors
The Company's directors who are not independent directors may receive compensation from the Company in the form of E Shares but will not otherwise receive direct compensation from the Company. The Company pays each independent director: (i) an annual fee (prorated for any partial year) which is at a market rate in an amount to be determined by the Board, or committee thereof, at a later date and (ii) an additional annual fee which is at a market rate in an amount to be determined by the Board, or committee thereof, at a later date for the Chair of the Audit Committee. On an annual basis, pursuant to the Director Compensation Program, each Independent Director shall receive a portion of his or her annual compensation in Series I E Shares or Series II E Shares (as may be elected by such Independent Director) (the "Share Grants") equivalent to $50,000 (prorated for any partial year of service) and subject to such other terms as the Board may approve from time to time. Share grants will generally vest upon issuance.

There were no E Shares redeemed or exchanged for the period from March 11, 2025 (date of formation) to December 31, 2025.

9. Income Taxes

Series I has elected to be treated as a corporation and is subject to current and deferred U.S. federal, state and/or local income taxes. Series II holds interests in Portfolio Assets, through subsidiaries that are treated as corporations for U.S. and non-U.S. tax purposes and therefore are subject to current and deferred U.S. federal, state and/or local income taxes at the subsidiary level.

In this reporting period, the Company adopted FASB Accounting Standards Update 2023-09, Income Taxes (Topic 740) – Improvement to Income Tax Disclosures (ASU 2023-09), which requires enhanced disclosure, disaggregated by jurisdiction, on income taxes paid. Adoption of the new standard impacted financial statement disclosures only and did not affect the Company's financial position or the results of its operations. For the period covered by this Annual Report, the Company did not pay any material income taxes in foreign jurisdictions.

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#### **Table of Contents**
The components of the provision for (benefit from) income taxes are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | For the period ended December 31, 2025 | For the period ended December 31, 2025 | For the period ended December 31, 2025 |
|  | Series I | Series II | PIMCO Asset-Based<br> Lending Company LLC |
| Current Tax | $146 | $12 | $158 |
| Deferred Tax | $(81) | $3 | $(78) |
| Total Income Tax Provision (Benefit) | $65 | $15 | $80 |

---

The following table represents significant components of the Company's deferred tax assets and liabilities:

---

| | | | |
|:---|:---|:---|:---|
|  | For the period ended December 31, 2025 | For the period ended December 31, 2025 | For the period ended December 31, 2025 |
|  | Series I | Series II | PIMCO Asset-Based<br>Lending Company LLC |
| Deferred Tax Asset |  |  |  |
| Unrealized appreciation/depreciation | $81 | $- | $81 |
| Deferred Tax Liability |  |  |  |
| Unrealized appreciation/depreciation | $- | $(3) | $(3) |

---

In evaluating the realizability of deferred tax assets, the Company assesses whether it is more likely than not that some portion, or all, of the deferred tax assets, will be realized. The Company considers, among other things, the generation of future taxable income (including reversals of deferred tax assets) during the periods in which the related temporary differences will become deductible.

As of December 31, 2025, the Company has no open tax years under the general statute of limitations provision that could be subjected to examination as 2025 is the Company's initial tax year. Currently, there are no audits in process.

10. Indemnification

Under the LLC Agreement, members of the Board, PIMCO, holders of the V Shares, the members of the Acquisition Committee, their respective affiliates, directors, officers, representatives, agents, shareholders, members, managers, partners and employees, and any other person who serves at the request of PIMCO or its affiliates as a director, officer, agent, member, manager, partner, shareholder, trustee or employee of the Company, Series I or Series II or any other person (each such person being an "Indemnified Party") are indemnified against any and all claims, liabilities, damages, losses, costs and expenses of any kind, including legal fees and amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and expenses of investigating or defending against any claim or alleged claim, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnified Party and arise out of or in connection with the business of the Company or the performance by the Indemnified Party of any of its responsibilities under the LLC Agreement or the Operating Agreement, so long as the Indemnified Party did not act with actual fraud, willful misconduct, gross negligence, bad faith, a willful material and adverse breach of the LLC Agreement or applicable law. Thus, one or more of the foregoing persons could be indemnified for its negligent acts if it met the requirements set forth above.

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11. Administration Fees and Other Agreements

Company Administration Fees

The Company has entered into an administration agreement with SEI Global Services (the "Administrator"), pursuant to which the Administrator maintains the Company's official books and records and provides accounting services and audit support. The Administrator receives customary fees from the Company for such services. The Administrator is also reimbursed by the Company for certain out of pocket expenses. Administrator fees are included in the general and administrative expenses on the Combined Statements of Operations.

Transfer Agency Fees, Custody Fees and Expenses

State Street Bank and Trust Company serves as transfer, distribution and shareholder servicing agent for the Company and is the Company's custodian and receives customary fees from the Company for such services.

12. Financial Highlights

The following are the financial highlights for the period from March 11, 2025 (date of formation) to December 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Series I | Series I | Series I | Series I | Series I | Series I |
|  | Anchor I Shares<sup>(1)</sup> | Anchor II Shares<sup>(2)</sup> | Anchor II-B Shares<sup>(1)</sup> | Standard A Shares<sup>(1)</sup> | Standard B Shares<sup>(1)</sup> | E Shares<sup>(3)</sup> |
| Per share data: |  |  |  |  |  |  |
| Net asset value, beginning of period | $- | $- | $- | $- | $- | $- |
| Proceeds from issuance of Shares | 10.14 | 10.00 | 10.14 | 10.14 | 10.14 | 10.00 |
| Net investment income<sup>(4)</sup> | 0.85 | 0.31 | 0.27 | 0.34 | 0.21 | 0.29 |
| Net realized and unrealized gain/(loss)<sup>(5)</sup> | (0.72) | (0.08) | (0.15) | (0.24) | (0.11) |  |
| Net increase (decrease) in net assets from operations | 10.27 | 10.23 | 10.26 | 10.24 | 10.24 | 10.29 |
| Net asset value, end of period | $10.27 | $10.23 | $10.26 | $10.24 | $10.24 | $10.29 |
| Shares outstanding, end of period | 73617 | 1322512 | 110 | 33060 | 110 | 207585 |
| Weighted average shares outstanding | 24879 | 571008 | 110 | 23419 | 110 | 193732 |
| Ratios / supplemental data<sup>(9)</sup>: |  |  |  |  |  |  |
| Net assets, end of period | $756 | $13530 | $1 | $339 | $1 | $2136 |
| Total expenses before expense support, waiver and rebate, after Performance Fee<sup>(6)(7)(8)</sup> | (20.58)% | 14.79% | (0.18)% | (3.00)% | 0.39% | 12.47% |
| Total expenses after expense support, waiver and rebate, after Performance Fee<sup>(6)(7)(8)</sup> | 3.14% | 2.78% | 2.21% | 3.19% | 2.78% | 1.22% |
| Total expenses after expense support, waiver and rebate, before Performance Fee<sup>(6)(7)(8)</sup> | 2.95% | 2.49% | 2.09% | 2.97% | 2.59% | 1.22% |
| Net investment income<sup>(7)(8)(9)</sup> | 11.09% | 3.54% | 2.65% | 3.68% | 2.09% | 2.90% |
| Total return<sup>(10)</sup> | 1.28% | 2.31% | 1.14% | 0.96% | 0.94% | 2.91% |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Series II | Series II | Series II | Series II | Series II |
|  | Anchor I Shares<sup>(3)</sup> | Anchor II Shares<sup>(2)</sup> | Anchor III Shares<sup>(3)</sup> | Standard A Shares<sup>(1)</sup> | E Shares<sup>(3)</sup> |
| Per share data: |  |  |  |  |  |
| Net asset value, beginning of period | $- | $- | $- | $- | $- |
| Proceeds from issuance of Shares | 10.00 | 10.00 | 10.00 | 10.17 | 10.00 |
| Net investment income<sup>(4)</sup> | 0.56 | 0.33 | 0.41 | 0.49 | 0.57 |
| Net realized and unrealized gain/(loss)<sup>(5)</sup> | (0.22) | (0.01) | (0.05) | (0.35) | (0.19) |
| Net increase (decrease) in net assets from operations | 10.34 | 10.32 | 10.36 | 10.31 | 10.38 |
| Net asset value, end of period | $10.34 | $10.32 | $10.36 | $10.31 | $10.38 |
| Shares outstanding, end of period | 8213773 | 8104882 | 10000000 | 171436 | 4274290 |
| Weighted average shares outstanding | 4920966 | 5439055 | 10000000 | 138507 | 3421986 |
| Ratios / supplemental data(9): |  |  |  |  |  |
| Net assets, end of period | $84918 | $83610 | $103583 | $1768 | $44357 |
| Total expenses before expense support, waiver and rebate, after Performance Fee<sup>(6)(7)(8)</sup> | 6.10% | 10.65% | 5.25% | 6.50% | 5.12% |
| Total expenses after expense support, waiver and rebate, after Performance Fee<sup>(6)(7)(8)</sup> | 2.69% | 3.24% | 1.58% | 3.67% | 1.71% |
| Total expenses after expense support, waiver and rebate, before Performance Fee<sup>(6)(7)(8)</sup> | 2.52% | 2.90% | 1.39% | 3.51% | 1.71% |
| Net investment income<sup>(7)(8)(9)</sup> | 6.38% | 4.02% | 3.98% | 5.35% | 6.31% |
| Total return<sup>(10)</sup> | 3.38% | 3.16% | 3.58% | 1.37% | 3.78% |

---

V Shares are not presented as they do not have economic participation in the Company.

(1) First issued on October 1, 2025.

(2) First issued on July 1, 2025.

(3) First issued on August 1, 2025.

(4) The per share data was derived by using the weighted average shares outstanding during the applicable period.

(5) The amount shown at this caption is the balancing amount derived from the other figures in the table. The amount shown at this caption for a share outstanding throughout the period may not agree with the change in the aggregate gains and losses in investments for the period because of the timing of sales of shares in relation to fluctuating market value for the portfolio.

(6) Actual results may not be indicative of future results. Additionally, a Shareholder's ratio may vary from the ratios presented for a Share class as a whole. For the applicable period, operating expenses are annualized except for Organizational and Offering Expenses and Performance Fees.

(7) The ratios were derived using the simple average net assets during the applicable period.

(8) Ratios do not reflect Series I and Series II's proportionate share of income and expenses of the underlying investments in affiliates. See Note 3, Agreements and Related Party Transactions, in the Notes to audited combined financial statements for additional information.

(9) For the applicable period, investment income and operating expenses are annualized except for Organizational and Offering Expenses and Performance Fees.

(10) The total return is calculated for each Share class as the change in the NAV for such Share class during the period. Amounts are not annualized and are not representative of total return as calculated for purposes of the Performance Fees as described in Note 3. The Company, Series I and Series II's performance changes over time and currently may be different than that shown above. Past performance is no guarantee of future results. Investment performance is presented without regard to sales load that may be incurred by Shareholders in the purchase of the Company, Series I and Series II's shares.

13. Segment Reporting

An operating segment is defined in FASB ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segment and to assess its performance, and has discrete financial information available. The executive officers of the Company, as disclosed in this Annual Report, act as the Company's CODM. Series I, Series II and the Company represent a single operating segment, as the CODM monitors the operating results of the Company as a whole and the Company's long-term strategic asset allocation, based on a defined investment strategy which is executed by the Company's portfolio managers as a team. The CODM uses net increase (decrease) in net asset values and returns to assess financial performance and make key strategic decisions, such as identifying attractive Portfolio Assets to allocate capital. The financial information reflected in the Company's portfolio composition, total returns, expense ratios and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions), which are used by the CODM to assess the segment's performance versus the Company's comparative benchmarks and to make resource allocation decisions for the Company's single segment, is consistent with that presented within the Company's combined financial statements. Segment assets are reflected on the accompanying Combined Statement of Assets and Liabilities as "total assets" and significant segment expenses are listed on the accompanying Combined Statements of Operations.

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14. Subsequent Events

Subsequent events after the Statement of Assets and Liabilities date have been evaluated through the date the combined financial statements were issued. The Company has evaluated subsequent events and determined to disclose the following subsequent events and transactions.

On February 26, 2026, the Board unanimously approved the creation and issuance of Anchor I-B Shares.

On March 4, 2026, the Company and the Dealer Manager agreed to an increase in the distribution and servicing fees for Anchor II-B Shares and Standard B Shares from 0.75% to 0.85% per annum of the outstanding Anchor II-B Shares and Standard B Shares.

January Financial Update

On January 2, 2026, the Company issued and sold the following Shares to third party investors for cash:

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| | | |
|:---|:---|:---|
|  | Number of Shares Sold | Aggregate Consideration |
| Class |  |  |
| Series I |  |  |
| Anchor I Shares |  | $- |
| Anchor II Shares | 78197 | 800000 |
| Anchor II-B Shares |  |  |
| E Shares | 5669 | 58334 |
| Standard A Shares | 9766 | 100000 |
| Series II |  |  |
| Anchor I Shares | 1954869 | 20210300 |
| Anchor II Shares | 1814695 | 18720359 |
| Anchor III Shares |  |  |
| E Shares | 12447 | 129167 |
| Standard A Shares |  |  |

---

February Financial Update

On February 28, 2026, the Company issued and sold the following Shares to third party investors for cash:

---

| | | |
|:---|:---|:---|
|  | Number of Shares Sold<sup>(1)</sup> | Aggregate Consideration<sup>(1)</sup> |
| Class |  |  |
| Series I |  |  |
| Anchor I Shares |  | $- |
| Anchor II Shares | 1714 | 17522 |
| Anchor II-B Shares |  |  |
| E Shares | 1307 | 13452 |
| Standard A Shares | 183 | 1863 |
| Series II |  |  |
| Anchor I Shares | 1004880 | 10403595 |
| Anchor II Shares | 715851 | 7392265 |
| Anchor III Shares | 61481 | 638000 |
| E Shares | 24188 | 251572 |
| Standard A Shares | 319862 | 3300000 |

---

<sup>(1)</sup> Inclusive of shares issued pursuant to the Company's Distribution Reinvestment Plan.

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Board Compensation

The Board approved the director compensation program for Independent Directors, pursuant to which, E Shares may be granted to independent directors. Effective January 1, 2026, Series I and Series II granted 5,696.41 and 2,810.56 E Shares to the Independent Directors with a grant date fair value of $0.06 million and $0.03 million, respectively, as part of the director compensation program. The Shares immediately vested upon issuance.

Series I Liquidation

On March 12, 2026, the Board approved management's proposal that Series I liquidate its assets, wind up its business and subsequently dissolve as a legal entity, and, in connection therewith, offer Series I shareholders the opportunity to reinvest in corresponding classes of Series II using the proceeds they are credited with in connection with the liquidation of their Series I Shares (the "Liquidation Proposal"). Given, as of December 31, 2025, only approximately 5% of the Company's NAV was attributable to Series I, management intends to move forward with the Liquidation Proposal and currently expects settlement in the second or third quarter of 2026. Any Series I shareholders who elect to reinvest in Shares of Series II will do so as part of the Company's ordinary course monthly subscription process in existing classes of Series II.

#### Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
There are not and have not been any disagreements between the Company and its accountant on any matter of accounting principles, practices, or financial statement disclosure.

#### Item 9A. Controls and Procedures

#### Evaluation of disclosure controls and procedures
The Company and each Series maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that the information required to be disclosed by the Company in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and such information is accumulated and communicated to management, including the Principal Executive Officer and the Principal Financial Officer of the Company, as appropriate, to allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurances of achieving the desired control objectives. As of the end of the period covered by this Annual Report, the Company carried out an evaluation, under the supervision and with the participation of the Series and Company's management, including the Company's Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on that evaluation, the Company's Principal Executive Officer and Principal Financial Officer have concluded that as of December 31, 2025, the disclosure controls and procedures of the Company and each Series were effective to accomplish their objectives at the reasonable assurance level.

#### Changes in internal control over financial reporting
There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter ended December 31, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

#### Management's report on internal control over financial reporting
This Annual Report on Form 10-K does not include a report of management's assessment regarding internal control over financial reporting or an attestation report of the Company's registered public accounting firm due to a transition period established by rules of the SEC for newly public companies.

#### **Table of Contents**

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##### [**Table of Contents**](#toc)

#### Certifications
The certifications of the Principal Executive Officer and Principal Financial Officer of the Company required by Section 302 and Section 906 of the Sarbanes-Oxley Act, which are filed or furnished as Exhibits 31.1, 31.2 and 32.1 to this Annual Report, are applicable to each Series individually and to the Company as a whole.

#### Item 9B. Other Information
On March 12, 2026, the Board approved the Operating Manager's proposal that Series I liquidate its assets, wind up its business and subsequently dissolve as a legal entity, and, in connection therewith, offer Series I shareholders the opportunity to reinvest in shares of Series II using the proceeds they are credited with in connection with the liquidation of their Series I shares.

#### Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
None.

#### PART III

#### Item 10. Directors, Executive Officers and Corporate Governance

#### Board Purpose and Structure
Overall responsibility for the Company's and each Series' oversight rests with the Board. To the extent permitted by applicable law, the Board may delegate any of its rights, powers and authority to, among others, any committee of the Board, the officers of the Company or the Operating Manager. As of the date of this Annual Report, the Board consists of six members, three of whom the Board has determined are independent directors, as such term is defined in Section 303A.02 of the New York Stock Exchange Listed Company Manual.

#### Board of Directors and Executive Officers
The following individuals have been appointed as members of the Board and/or executive officers, as applicable, as set forth below:

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| | | | |
|:---|:---|:---|:---|
| Name | Year of Birth | Position | Position Held Since |
| BOARD OF DIRECTORS | BOARD OF DIRECTORS | BOARD OF DIRECTORS | BOARD OF DIRECTORS |
| Richard LeBrun | 1976 | Chairperson / Non-Independent Director | 2025 |
| Christian Clayton | 1984 | Non-Independent Director | 2025 |
| David Flattum | 1964 | Non-Independent Director | 2025 |
| Debra Huddleston | 1962 | Independent Director | 2025 |
| Jeff Mayer | 1959 | Independent Director | 2025 |
| Jeff Gelfand | 1966 | Independent Director | 2025 |
| EXECUTIVE OFFICERS | EXECUTIVE OFFICERS | EXECUTIVE OFFICERS | EXECUTIVE OFFICERS |
| Jason Steiner | 1976 | Co-President | 2025 |
| Harin de Silva | 1969 | Co-President | 2025 |
| Jason Mandinach | 1984 | Principal Executive Officer | 2025 |
| Crystal Porter | 1982 | Principal Financial Officer and Principal Accounting Officer | 2025 |
| Ryan Leshaw | 1980 | Chief Legal Officer | 2025 |

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#### **Table of Contents**
Each director will hold office until his or her disability, death, resignation, removal or disqualification. The address for each of our directors is c/o PIMCO Asset-Based Lending Company LLC, 650 Newport Center Drive, Newport Beach, CA 92660.

Each executive officer holds office at the pleasure of the Board until his or her successor is duly appointed and qualified or until their earlier disability, death, resignation or removal or as the Board otherwise determines in its sole discretion.

#### Biographical Information

#### Directors
Our directors have been divided into two groups—independent directors and non-independent directors.

Non-Independent Directors

Richard LeBrun. Mr. LeBrun is a managing director and head of alternatives business management at PIMCO, located in the Newport Beach office. Previously, Mr. LeBrun was deputy general counsel, primarily responsible for the firm's alternative funds and transactions. Prior to joining PIMCO in 2005, he was an associate with Ropes & Gray, focusing on investment management and private-equity-related matters. He has 21 years of legal experience and holds a J.D. from the University of Michigan Law School where he was admitted to the Order of the Coif. He received an undergraduate degree from Northwood University. He was admitted to the bar in Massachusetts and New York. We believe Mr. LeBrun's extensive alternative asset investment experience makes him a well-qualified member of the Board.

Christian Clayton. Mr. Clayton is an executive vice president in the Newport Beach office. He leads product strategy for PIMCO's private strategies platform in the Americas, responsible for corporate, asset-based, multi-asset public and private credit, and tax-efficient strategies. As part of this role he leads product strategy for PIMCO's global wealth alternatives platform. Prior to joining PIMCO in 2014, he worked in the investment banking division at Citigroup in Hong Kong. He holds an MBA from the Marshall School of Business at the University of Southern California and a master's degree in East Asian Studies from Columbia University. Mr. Clayton received an undergraduate degree from Brigham Young University. We believe Mr. Clayton's extensive experience in private investment strategies makes him a well-qualified member of the Board.

David Flattum. Mr. Flattum joined PIMCO as Global General Counsel in 2006. Previously, he was General Counsel and Chief Operating Officer of Allianz Asset Management of America and a partner at the law firm of Latham & Watkins, specializing in mergers and acquisitions. He has served in numerous leadership capacities, including as Chair of PIMCO's Audit, Risk, Conflicts, and Pricing Committees and as Chief Legal Officer for the PIMCO Funds. He retired from his role as Global General Counsel of PIMCO at the end of 2023 and has continued to stay engaged with PIMCO as a consultant. We believe Mr. Flattum's extensive alternative asset investment experience makes him a well-qualified member of the Board.

#### Independent Directors
Debra Huddleston. Ms. Huddleston currently serves as an independent trustee for PIMCO Flexible Real Estate Income Trust, as an independent director for PIMCO Capital Solutions BDC Corp. and as a member of the board of directors for Community Development Trust, where she is on the audit committee. She is also currently employed as a managing director at Brean Capital. Previously, Ms. Huddleston was an independent advisor to Phoenix RealTech until 2025, a member of the board of directors of National Cooperative Bank until 2023, an independent non-executive member of the board of directors of Fieldpoint Private Bank until 2023, a partner of Ajax Partners until 2022 and has been a managing director at financial institutions such as Centennial Bank, Ranieri Partners, Perella Weinberg Partners, BlackRock and Credit Suisse. Ms. Huddleston holds an MBA degree from the Wharton School of the University of Pennsylvania and received an undergraduate degree from Brown University. We believe that Ms. Huddleston's extensive experience in the finance and asset management industries and her experience serving on numerous boards make her a well-qualified member of the Board.

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#### **Table of Contents**
Jeff Mayer. Mr. Mayer is currently an active private investor and invests in early-stage private equity and private real estate deals, as well as being active in public markets. Mr. Mayer's career spanned 40 years within large financial service institutions and he held leadership positions for 25 of those years. From October 2015 to November 2019, Mr. Mayer was Senior Managing Director at Cerberus Capital Management where he was a founder and Executive Chairman of FirstKey Holdings, LLC. At FirstKey, he oversaw from August 2014 to October 2015 the entity's activities in residential and commercial mortgage origination, loan transaction management and single-family rental and residential property management. Prior to these roles, Mr. Mayer was at Deutsche Bank AG, where he was Head of the Corporate Banking and Securities Division in North America and sat on the Investment Bank Executive Committee. He was at UBS Investment Bank, where he led the global sales and trading of all fixed income and currency products and sat on the Investment Bank Executive Committee. Mr. Mayer had a 19-year career at Bear, Stearns & Co. Inc., where he played a significant role in the growth and expansion of the firm's global fixed income franchise and sat on the company's Operating Management and Executive Committees. We believe Mr. Mayer's extensive experience across the asset management industry and various roles in finance make him a well-qualified member of the Board.

Jeff Gelfand. Since his retirement from Centerbridge in 2018, Mr. Gelfand has offered selective, strategic consulting for alternative investment firms and investment management focused FinTech companies. Mr. Gelfand was with Centerbridge from 2006 to 2018, where he oversaw the firm's accounting, tax, operations, investor services, and technology functions. Prior to joining Centerbridge, Mr. Gelfand was the chief financial officer of Silver Point Capital LP, where he was responsible for finance, operations, and administration from that firm's inception through December 2005. Prior to Silver Point Capital LP, Mr. Gelfand was the chief financial officer of AOL Time Warner's investment company. Previously, he was the chief financial officer and managing director at Evercore Partners Inc. Mr. Gelfand began his career at Ernst & Young LLP. Mr. Gelfand received a BBA from Michigan Ross. He qualified in 1992 as a certified public accountant, licensed in New York, and is an American Institute of Certified Public Accountants member. We believe that Mr. Gelfand's financial and accounting expertise make him a well-qualified member of the Board.

#### Executive Officers
Jason Steiner. Mr. Steiner is a managing director and portfolio manager in PIMCO's Newport Beach office. He is a lead portfolio manager for PIMCO's multi-sector and asset-based private lending and opportunistic strategies. He is responsible for residential mortgage credit across public and private markets. In addition to his portfolio management responsibilities, he sits on PIMCO's Executive Committee and is a member of the PM management committee. Prior to joining PIMCO in 2009, Mr. Steiner spent eight years at Natixis Capital Markets in New York, focusing on trading RMBS. He has 24 years of investment and financial services experience and holds undergraduate degrees in mathematics and computer science from Boston College.

Harin de Silva. Mr. de Silva is a managing director and portfolio manager in the New York office. He chairs PIMCO's private strategies leadership team and has oversight of the portfolio management team focused on private strategies. In addition, Mr. de Silva co-leads the specialty finance team globally and is a lead portfolio manager for PIMCO's multi-sector private credit, asset-based lending, and opportunistic strategies. Prior to joining PIMCO in 2009, he was a managing director at Merrill Lynch with a focus on structured credit. Mr. de Silva previously worked at Credit Suisse First Boston and Prudential Securities, focusing on structured finance, CDOs, and credit derivatives. He began his career in the actuarial department at Royal Sun Alliance. He has 29 years of investment experience and holds an MBA in analytical finance from the University of Chicago and a bachelor's degree in applied mathematics from Davidson College in North Carolina.

Jason Mandinach. Mr. Mandinach is a managing director in PIMCO's Newport Beach office. He leads product strategy for PIMCO's global alternative credit and private strategies platform, responsible for opportunistic credit, private lending, alternative credit and real estate offerings for our institutional and wealth management clients. Prior to joining PIMCO in 2010, he worked in business development for the Chicago Climate Futures Exchange, where he developed derivative contracts on environmental commodities. Previously, he was a vice president in the structured products group at Bear Stearns. He has 18 years of investment experience and holds an undergraduate degree from the University of Delaware.

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#### **Table of Contents**
Crystal Porter. Ms. Porter is an executive vice president in PIMCO's Newport Beach office, focusing on the financial accounting, reporting, and operations for alternative funds. Prior to joining PIMCO in 2014, she was a senior manager in the investment management practice at PricewaterhouseCoopers LLP, with a focus on hedge and private equity fund audits. She has 22 years of investment and financial services experience and holds an undergraduate degree in business economics with an emphasis in accounting from the University of California, Santa Barbara.

Ryan Leshaw. Mr. Leshaw is an executive vice president and deputy general counsel in the legal and compliance department in PIMCO's Newport Beach office. He provides legal support primarily to PIMCO's commingled funds and vehicles. Prior to joining PIMCO in 2011, he was an associate in the investment management practice group at Willkie Farr & Gallagher LLP, focusing on registered funds. He has 18 years of legal experience and holds an undergraduate degree from Emory University and a J.D. from the University of San Diego School of Law. He is a member of the bar in the District of Columbia and California.

#### Acquisition Committee
PIMCO has established the Acquisition Committee to seek to incorporate cross-sector perspectives and relative value input with respect to PIMCO as a whole. The Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, a committee of the Board, as applicable) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager, as well as overseeing the ongoing performance of Portfolio Assets on a periodic basis. The composition, structure and/or operations of the Acquisition Committee may change from time to time (or the Company may cease to have the Acquisition Committee or a similar committee), each without the consent of or notice to the Shareholders.

The Acquisition Committee includes Dan Ivascyn, Harin de Silva, Kristofer Kraus, Jason Steiner, Giang Bui, Michael Chiao, Ben Ensminger-Law and Craig Wunderlich, each as voting members, and Nick Mosich as a non-voting member. Mr. Ivascyn serves as Executive Chair of the Acquisition Committee. The senior team of asset and company management professionals, including with respect to membership on the Acquisition Committee, may be adjusted by the Board at its sole discretion without notice to the Shareholders.

Dan Ivascyn. Mr. Ivascyn is Executive Chair of the Acquisition Committee. Mr. Ivascyn is Group Chief Investment Officer and a managing director in PIMCO's Newport Beach office. He is lead portfolio manager for PIMCO's income, credit hedge fund, and mortgage opportunistic strategies, and is also a portfolio manager for total return strategies. He is a member of PIMCO's Executive Committee and a member of the Acquisition Committee. Morningstar named him Fixed-Income Fund Manager of the Year (U.S.) for 2013, and he was inducted into the Fixed Income Analysts Society Hall of Fame in 2019. Prior to joining PIMCO in 1998, he worked at Bear Stearns in the asset-backed securities group, as well as T. Rowe Price and Fidelity Investments. He has 31 years of investment experience and holds an MBA in analytic finance from the University of Chicago Graduate School of Business and a bachelor's degree in economics from Occidental College.

Jason Steiner. Mr. Steiner is Co-President of the Company and a member of the Acquisition Committee. See "—Executive Officers" above for Mr. Steiner's biography.

Harin de Silva. Mr. de Silva is Co-President of the Company and a member of the Acquisition Committee. See "—Executive Officers" above for Mr. de Silva's biography.

Kristofer Kraus. Mr. Kraus is a managing director and portfolio manager in the New York office. His responsibilities include sourcing, underwriting and managing opportunistic specialty finance investments in the U.S. and Europe. Prior to joining PIMCO in 2010, he was a managing director at Barclays Capital, where he oversaw trading and structuring for structured credit products. Mr. Kraus was previously with Credit Suisse First Boston, focusing on structured products, mortgage-backed securities and loan funds. He has 28 years of investment experience and holds a bachelor's degree in economics from the Wharton School of the University of Pennsylvania.

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#### **Table of Contents**
Ben Ensminger-Law. Mr. Ensminger-Law is a managing director and portfolio manager in the New York office. His responsibilities include sourcing and underwriting specialty finance and asset-based investments in the U.S. Prior to joining PIMCO in 2018, he was an analyst at Claren Road with a focus on structured credit and specialty finance investments. Mr. Ensminger-Law previously worked at Citigroup in the U.S. and Asia, focusing on structured finance, securitized products, and credit derivatives. He began his career at MMC, where he worked in a variety of roles focused on structured insurance and reinsurance transactions. He has 24 years of investment experience and holds an MBA from the University of Virginia and a bachelor's degree from Brown University.

Giang Bui. Ms. Bui is an executive vice president in PIMCO's Newport Beach office and a portfolio manager and trader of securitized debt instruments, focusing on CLOs, asset-backed collateralized debt obligations, and off-the-run sectors within structured products. Ms. Bui joined PIMCO in 2000 and was previously a member of the bank loan portfolio management team, responsible for bank loan investments and the management of PIMCO-issued CLOs. She has 23 years of investment experience and holds an MBA from the Anderson School of Management at the University of California, Los Angeles, and an undergraduate degree from the University of California, San Diego.

Michael Chiao. Mr. Chiao is a portfolio manager focusing primarily on residential loan investments. Prior to joining PIMCO in 2017, he worked at Fortress Investment Group, focused on non-agency residential mortgage-backed securities (RMBS) and various structured products. Previously, Mr. Chiao spent three years at PIMCO as a portfolio management associate, and he began his career as an analyst in the whole loan trading and securitization group at Countrywide Capital Markets. He holds an undergraduate degree from California State Polytechnic University, Pomona.

Craig Wunderlich. Mr. Wunderlich is an executive vice president and portfolio manager in the New York office focused on sourcing, executing, and managing private equity and structured equity investments in the firm's alternatives investing complex. Prior to joining PIMCO in 2023, Mr. Wunderlich led investments across specialty finance, financial technology, and business services as a managing director in Värde Partners' financial services team, which he joined in 2020, and as an investment professional at Aquiline Capital Partners, which he joined in 2011. He previously held positions at Morgan Stanley, Barclays Capital, GE Capital, and IBM. He has 24 years of investment and financial services experience and holds an MBA and a bachelor's degree in engineering from University of Illinois.

Nick Mosich. Mr. Mosich is a managing director and deputy general counsel in PIMCO's Newport Beach office. He is PIMCO's head of alternatives legal, with responsibility for coordinating and overseeing coverage of legal matters relating to the firm's alternatives business and trade floor transactions on a global basis. Prior to joining PIMCO in 2013, he was a senior associate with Latham & Watkins LLP, focusing on M&A, capital markets and general corporate matters. Prior to that, he clerked for a judge on the United States Court of Appeals for the 10th Circuit. He has 18 years of legal experience and holds a J.D. from the University of Southern California Gould School of Law, where he served as managing editor of the Southern California Law Review. He holds an undergraduate degree from the University of Southern California Marshall School of Business. Mr. Mosich is a member of the California Bar.

#### Committees
The Board has formed the Audit Committee and may form additional committees, ad hoc committees or working groups in the future.

#### Audit Committee
The primary purpose of the Audit Committee is to assist the Board in overseeing and monitoring (i) the integrity of our financial statements and other financial information provided by the Company to its Shareholders, the public and others, (ii) our compliance with legal and regulatory requirements and (iii) the qualifications, independence and performance of our independent auditor. In addition, transactions and other matters of the Company that present a material conflict of interest may be subjected to the review and approval of a majority of the non-interested members of the Board or a duly-appointed committee thereof, which is the Audit Committee that is composed entirely of independent directors.

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#### **Table of Contents**
As of the date of this Annual Report, the members of the Audit Committee are our three independent directors. The Board has determined that each of the members of the Audit Committee meets the independence standards and financial literacy requirements for service on an audit committee of a board of directors pursuant to the Exchange Act and New York Stock Exchange rules applicable to audit committees and corporate governance. The Board has determined that Jeff Gelfand qualifies as an "audit committee financial expert" within the meaning of Item 407(d)(5) of Regulation S-K.

#### Executive Officers
The Company's executive officers or the Acquisition Committee (in each case through a delegation of authority from the Board) or, in certain cases, a committee of the Board, as applicable, are responsible for making capital allocation decisions proposed by the Operating Manager and overseeing the management of the Company.

#### Operating Manager
Pursuant to the terms of the Operating Agreement, the Operating Manager is an investment adviser registered with the SEC under the Advisers Act, manages the Company on a day-to-day basis (subject to the directions of the Acquisition Committee and to the supervision of the Board). The Operating Manager provides certain management, administrative and advisory services to the Company related to funding, financing and/or structuring the Portfolio Assets (including the Asset-Backed Instruments); provided, however, that the Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, a committee of the Board, as applicable) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager.

#### Code of Ethics
We have a Code of Business Conduct and Ethics that applies to all officers and directors of the Company, which is filed as an exhibit to this Annual Report. In accordance with, and to the extent required by the rules and regulations of the SEC, we intend to disclose amendments to or waivers of the Code of Business Conduct and Ethics in a current report on Form 8-K filing.

#### Insider Trading Policy
The Company's insider trading policies are included in the Company's Code of Business Conduct and Ethics, which governs the purchase, sale and other dispositions of our securities by any of our directors or employees, partners, employee directors and officers of PIMCO, for the purpose of promoting compliance with insider trading laws, rules and regulations. A copy of our insider trading policy, which is contained within the Company's Code of Business Conduct of Ethics, is filed as an exhibit to this Annual Report. Furthermore, with regard to the Company's trading in its own securities, it is the Company's policy to comply with applicable laws, rules and regulations.

#### Item 11. Executive Compensation
(a) Compensation of Executive Officers

We do not currently have any employees. Our corporate senior management team is comprised of Company officers, who are employees of PIMCO that are assigned or seconded to the Company. We may also engage other personnel which may be supplied by the Operating Manager, or may be directly hired by the Company or one or more of its subsidiaries. Services necessary for our business are generally provided by individuals who are employees of the Operating Manager, or its affiliates, pursuant to the terms of the Operating Agreement, as applicable. Our day-to-day business operations is managed by the Operating Manager. Most of the services necessary for the sourcing and administration of our portfolio are provided by investment professionals employed by the Operating Manager or its affiliates. Certain risks and potential conflicts exist as a result of our receiving services from the Operating Manager and its affiliates and not having any full-time employees. See "Item 1A. Risk Factors—Risks Related to our Company and an Investment in our Shares—The Company faces heightened risk from working with Affiliated Service Providers since key personnel will not devote their full time or attention to the Company and could leave the Affiliated Service Provider at any time."

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#### **Table of Contents**
Our executive officers may receive compensation from us in the form of E Shares but will not otherwise receive direct compensation from us. We reimburse the Operating Manager and/or their affiliates for Company expenses incurred on our behalf, which can include the compensation, overhead (including rent, office equipment and utilities) and other expenses incurred, charged or specifically attributed or allocated by the Operating Manager and/or their affiliates in performing administrative and/or accounting services for the Company or any Portfolio Asset (including but not limited to legal and compliance, finance, accounting, operations, investor relations, tax, valuation and internal audit personnel and other non-investment professionals that provide services to the Company). See "Item 1. Business—Operating Agreement" and "Item 13. Certain Relationships and Related Transactions, and Director Independence."

(b) Compensation of Directors

Our directors who are not independent directors may receive compensation from us in the form of E Shares but will not otherwise receive direct compensation from us. We pay each independent director: (i) annual compensation in the amount of $150,000 per year (prorated for any partial year), consisting of (a) $100,000 in cash, quarterly in arrears, together with (b) restricted E Shares with an aggregate value of $50,000 based on the then-current per Share transaction price of our E Shares at the time of grant. We pay the Chair of the Audit Committee an additional annual fee of $10,000. Restricted stock grants generally vest one year from the date of grant. Upon the declaration of a distribution payable to holders of E Shares, our directors will receive distribution payments on restricted E Shares or other equity awards they hold to the same extent, and in the same per Share amounts, as other holders of E Shares. We are also authorized to pay the reasonable out-of-pocket expenses of each independent director incurred by such director in connection with the fulfillment of his or her duties as an independent director.

The following table sets forth the compensation earned by our directors for the period from March 11, 2025 (date of formation) to December 31, 2025:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Name of Director | Fees<br>Earned<br>or Paid in<br>Cash | Stock<br>Awards | Option<br>Awards | Non-Equity<br>Incentive Plan<br>Compensation | Change in Pension<br>Value and Non-<br>Qualified<br>Deferred<br>Compensation<br>Earnings | All Other<br>Compensation | Total<br>Compensation |
| Interested Director |  |  |  |  |  |  |  |
| Richard LeBrun | $- |  |  |  |  |  |  |
| Christian Clayton | $- |  |  |  |  |  |  |
| David Flattum | $- |  |  |  |  |  |  |
| Independent Directors |  |  |  |  |  |  |  |
| Debra W. Huddleston | $88 |  |  |  |  |  | 88 |
| Jeff Mayer | $88 |  |  |  |  |  | 88 |
| Jeff Gelfand | $92 |  |  |  |  |  | 92 |

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#### Compensation Committee Interlocks and Insider Participation
We currently do not have a compensation committee of our Board and our Board does not make determinations regarding compensation of executive officers because we do not directly pay any compensation to our executive officers.

#### Policies and Practices Related to the Timing of Equity Awards
We do not grant options, and accordingly, we have no policy, program, practice, or plan pertaining to the timing of stock option grants with respect to the release of material non-public information. Furthermore, given that we do not directly compensate our executive officers, we also have not timed the release of material non-public information for the purpose of affecting the value of executive compensation.

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#### Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

#### Security Ownership of Certain Beneficial Owners and Management
The following table sets forth, as of February 28, 2026, information with respect to the beneficial ownership of our Shares by

• each person known to us to beneficially own more than 5% of any class of voting Shares;

• each of our directors and named executive officers; and

• all of our directors and executive officers as a group.

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. Unless otherwise indicated, all Shares are owned directly, and the indicated person has sole voting and investment power.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Address** | **Number of<br>Series I V<br>Shares<br>Beneficially<br>Owned** | **Percent of<br>Series I V<br>Shares<br>Beneficially<br>Owned** | **Number of<br>Series II V<br>Shares<br>Beneficially<br>Owned** | **Percent of<br>Series II V<br>Shares<br>Beneficially<br>Owned** |
|  **Greater than 5% Beneficial Owners of Voting Shares** |  |  |  |  |
|  PIMCO GP LXXXII, LLC<sup>(1)</sup> | 40 | 100% | 40 | 100% |

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(1) Number of Shares and percent beneficially owned presented in the table relate to Series I V Shares and Series II V Shares, which are the only share classes held by the beneficial owner, and such shares have voting rights. PIMCO GP LXXXII, LLC is managed by PIMCO. The address of PIMCO GP LXXXII, LLC is 650 Newport Center Drive, Newport Beach, California 92660.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name and Address** | **Number of<br>Series I E<br>Shares<br>Beneficially<br>Owned** | **Percent of<br>Series I E<br>Shares<br>Beneficially<br>Owned** | **Number of<br>Series II E<br>Shares<br>Beneficially<br>Owned** | **Percent of<br>Series II E<br>Shares<br>Beneficially<br>Owned** |
|  **Directors and Executive officers<sup>(</sup><sup>1)</sup>** |  |  |  |  |
|  Richard LeBrun |  |  | 100614 | 2.33 |
|  Christian Clayton |  |  |  |  |
|  David Flattum |  |  | 100614 | 2.33 |
|  Debra Huddleston | 2852 | 1.34 |  |  |
|  Jeff Mayer | 2852 | 1.34 |  |  |
|  Jeff Gelfand |  |  | 2828 | \* |
|  Jason Steiner |  |  | 100614 | 2.33 |
|  Harin de Silva |  |  |  |  |
|  Jason Mandinach |  |  | 25154 | \* |
|  Crystal Porter |  |  |  |  |
|  Ryan Leshaw |  |  |  |  |
|  All directors and executive officers as a group (eleven persons) | 5704 | 2.68 | 329824 | 7.65 |

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\* Represents less than 1% 

(1) The business address of each director and executive officer is c/o PIMCO Asset-Based Lending Company LLC, 650 Newport Center Drive, Newport Beach, California 92660.

#### Securities Authorized for Issuance Under Equity Compensation Plans
The Company does not have any equity compensation plans. For a description of equity awarded to our directors as part of our director compensation policy, see "*Item 11. Executive Compensation-Compensation of Directors."*

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#### Item 13. Certain Relationships and Related Transactions, and Director Independence
Transactions with Related Persons, Promoters and Certain Control Persons.

#### Statement of Policy Regarding Transactions with Related Persons
Our Board has adopted a written policy on transactions with related persons (the "Conflicts of Interest and Related Party Transactions Policy"), as reflected in our Code of Business Conduct and Ethics and Audit Committee Charter. Under the Conflicts of Interest and Related Party Transactions Policy, unless otherwise approved, pre-approved or ratified pursuant to the LLC Agreement, the members of the Audit Committee, who are disinterested with respect to a particular transaction, shall review and approve or ratify all transactions between the Company and any Related Person that are required to be disclosed pursuant to Item 404(a) of Regulation S-K ("Item 404(a)"). "Related Person" shall have the meaning given to such term in Item 404(a), as amended from time to time.

#### Asset-Backed Instruments
In connection with its investment activities, the Company may, from time to time, engage in certain transactions including purchases and sales of Asset-Backed Instruments from or to affiliates of the Operating Manager. For the period from March 11, 2025 (date of formation) to December 31, 2025, the Company received $95,375 of sales proceeds from sales of Asset-Backed Instruments to affiliates of the Operating Manager, and deployed $1,244 in purchase payments for purchases of Asset-Backed Instruments from affiliates of the Operating Managers.

#### Operating Agreement
Prior to accepting subscriptions for Shares of unaffiliated investors, the Company and the Operating Manager entered into the Operating Agreement pursuant to which the Operating Manager is entitled to receive the Management Fee and Performance Fee. See "*Item 1. Business—Compensation of the Operating Manager—Management Fee*" and "*Item 1. Business—Compensation of the Operating Manager—Performance Fee*" for additional information.

#### Operating Expenses
The Company incurred certain Operating Expenses related to services provided by personnel of the Operating Manager and/or its affiliates under the Operating Agreement. For the period from March 11, 2025 (date of formation) to December 31, 2025, these Operating Expenses were $5, $185, and $190 for Series I, Series II and the Company, respectively. These Operating Expenses are included in General and Administration Expenses in the Combined Statements of Operations; and also in the Due to Operating Manager and Other Accrued Expenses and liabilities in the Combined Statements of Assets and Liabilities.

#### Expense Support and Conditional Reimbursement Agreement
On July 11, 2025, the Company entered into the Reimbursement Agreement pursuant to which the Operating Manager may elect to pay certain of the Company's expenses, including certain Organizational and Offering Expenses on the Company's behalf (the "Expense Support"). See *"Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations."*

The Operating Manager elected to pay Expense Support of $0.6 million, $5.0 million and $5.6 million incurred by Series I, Series II and the Company, respectively, for the period from March 11, 2025 (date of formation) to December 31, 2025.

As of December 31, 2025, Series I, Series II and the Company had an outstanding amount payable to the Operating Manager of $0.3 million, $1.7 million and $2.0 million, respectively, for payments made on their behalf.

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#### Management Fees
The Shareholders are subject to Management Fees regardless of the performance of the Portfolio Assets. PIMCO's entitlement to non-performance-based compensation might reduce its incentive to devote the time and effort of its professionals to seeking profitable opportunities for the Company's Portfolio Assets. For the period from March 11, 2025 (date of formation) to December 31, 2025, the Company incurred Management Fees of $23, $536, and $559 for Series I, Series II and the Company, respectively.

#### Performance Fee; Use of Leverage
The Operating Manager receives a Performance Fee, as described under "*Item 1. Business—Compensation of the Operating Manager—Performance Fee*." The existence of the Operating Manager's Performance Fee creates an incentive for the Operating Manager to make more speculative acquisitions on behalf of the Company than it might otherwise make in the absence of such performance-based compensation. In addition, the Operating Manager may be incentivized to defer disposition of one or more assets or delay the liquidation of the Company if the disposition and/or liquidation would result in a realized loss to the Company. For the period from March 11, 2025 (date of formation) to December 31, 2025, the Company incurred Performance Fees of $15, $415, and $430 for Series I, Series II and the Company, respectively.

In addition, the Company has broad authority to utilize leverage by borrowing from any source, including affiliates or other PIMCO clients; as the use of leverage has the potential to magnify gains, the Operating Manager may be incentivized to utilize leverage in an effort to enhance Company performance and/or generate Performance Fees for itself. In particular, the Operating Manager may be incentivized to utilize any commitment-based Company credit facility, since borrowings associated with such facility generally will be included for purposes of the Management Fee payable to the Operating Manager. The Company may enter into financing arrangements with other PIMCO-advised accounts that are cross-collateralized. With respect to these or similar joint arrangements, PIMCO may be incentivized to favor certain accounts over others, for example, due to their terms or performance, which may materially and adversely impact the Company.

If certain holding period requirements are not met, the Operating Manager's Performance Fee will be subject to short-term capital gain. This holding period limitation could affect the decisions of the Operating Manager and the Company, including the timing of dispositions, and materially and adversely impact returns for Shareholders, and could also make it more difficult for the Operating Manager to incentivize, attract and retain individuals to perform services for the Company.

#### Letter Agreement
Since the commencement of operations, the Company received subscriptions of $26,835,125 from an affiliate of the Operating Manager (such investor, the "Seed Investor") and, in return, issued Anchor II Shares of Series II, to assist the Company with initial operational and acquisition activities. In connection with the Seed Investor's investment, the Company and the Seed Investor entered into a letter agreement pursuant to which in the event the Seed Investor's aggregate economic interests in the Company equal or exceed seventeen percent (17%) of the total outstanding economic interest of the Company (the "Ownership Limitation") on the last business day of the second month of any calendar quarter, the Company agreed that it shall, effective prior to the last business day of the applicable calendar quarter, repurchase Shares from the Seed Investor or its affiliates, without penalty, to the extent necessary such that their aggregate economic interests in the Company shall no longer equal or exceed the Ownership Limitation after giving effect to such Share repurchases. Such repurchases will not be subject to or counted towards the quarterly repurchase cap of 5.0% of the aggregate NAV (measured collectively across both Series) of the outstanding Shares.

#### Dealer Manager Fees, Selling Commissions and Ongoing Distribution and Servicing Fees
PIMCO Investments LLC (the "Dealer Manager") receives a dealer manager fee of 3.5% of the transaction price of the Anchor I Shares, Anchor I-B Shares, Anchor II Shares, Anchor II-B Shares, Anchor III Shares, Standard A Shares and Standard B Shares. For the period from March 11, 2025 (date of formation) to December 31, 2025, the Company did not incur Dealer Manager Fees for Series I, Series II and the Company.

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The Dealer Manager is entitled to receive upfront commissions based on the transaction price of certain Classes of Shares. Any participating broker-dealers are compensated from such amounts by reallowance from the Dealer Manager. For the period from March 11, 2025 (date of formation) to December 31, 2025, the Dealer Manager was entitled to receive a combined annual distribution fee and shareholder servicing fee of 0.75% per annum of the aggregate NAV of the outstanding Anchor II-B Shares and Standard B Shares. However, the Dealer Manager has waived the distribution and servicing fee effective from October 1, 2025 until such date as determined in its sole discretion. In addition, notwithstanding the ongoing waiver, on March 4, 2026, the Company and the Dealer Manager agreed to an increase in the distribution and servicing fees for Anchor II-B Shares and Standard B Shares from 0.75% to 0.85% per annum of the outstanding Anchor II-B Shares and Standard B Shares.

The Dealer Manager anticipates that all or a portion of upfront commissions and Dealer Manager Fees will be reallowed to participating broker-dealers and other distribution partners.

For the period from March 11, 2025 (date of formation) to December 31, 2025, Series I, Series II and the Company did not incur annual distribution fees and servicing fees.

#### Potential Conflicts of Interest
The Operating Manager is a leading global asset management firm that offers a wide variety of products and services to a diverse global client base. In addition, the Operating Manager is affiliated with Allianz SE, a worldwide asset management and financial services organization, and the Company may indirectly acquire, among other assets, the Insurance Assets owned (in whole or in part), insured, reinsured or managed by Allianz SE or its affiliates or other affiliates of the Company. Accordingly, there are numerous conflicts of interest that will arise in connection with the Company's operations. In particular, the Operating Manager may provide different advice to different clients, and advise a particular client to take or refrain from actions that are directly or indirectly adverse to other clients. In addition, the Operating Manager expects to cause the Company to use or transact with one or more PIMCO affiliates (and to pay them fees or other compensation), and to otherwise take actions that benefit its affiliates at the expense of its clients. References to clients or accounts herein mean all advisory clients of the Operating Manager and its affiliates, as applicable.

The discussion below enumerates certain actual and potential conflicts of interest relating to the Operating Manager's management of the Company. The discussion sets forth certain potential conflicts of interest that should be carefully evaluated before making an investment in the Company. Attention is also drawn to certain risk factors (see generally "*Item 1A. Risk Factor*s" above) that refer to potential conflicts of interest. Such discussions are not complete enumerations or explanations of all actual and potential conflicts of interest. The Operating Manager can give no assurance that any conflicts of interest will be resolved in favor of the Company. By acquiring Shares, each Shareholder will be deemed to have acknowledged the existence of actual and potential conflicts of interest, to have consented to the Operating Manager's decision with respect thereto and to have waived any claim with respect to any liability arising from the existence of any such conflict of interest or the resolution thereof as described herein.

The below summary is not intended to be an exhaustive list of all conflicts or their potential consequences. Identifying potential conflicts of interest is complex and fact-intensive, and it is not possible to foresee every conflict of interest that could arise during the life of the Company. In particular, the Company or the Operating Manager could in the future identify additional conflicts of interest that currently are not apparent to them, as well as conflicts of interest that arise or increase in materiality over time.

The Operating Manager's Form ADV Part 2A, copies of which are publicly available and available from the Operating Manager upon request and will be furnished to each investor prior to its admission to the Company, also contains further information regarding conflicts of interest relating to the Operating Manager that are relevant to the Company. Shareholders are encouraged to read such Form ADV Part 2A prior to investing.

We are subject to conflicts of interest arising out of our relationship with the Operating Manager and its affiliates. Additionally, the compensation arrangements of the Operating Manager or its affiliates and their personnel (including certain of their personnel who also serve as officers and/or directors of the Company) could influence the Operating Manager's services to the Company. The Company has established policies and procedures, including the adoption of a Conflicts of Interest and Related Party Transactions Policy, consistent with the LLC Agreement, that

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allows the Company to address some types of conflicts by seeking the approval of the Board or a committee of the Board consisting of independent directors (which is the Audit Committee); *provided* that any transaction that is identified in Section 15.1 of the LLC Agreement will be deemed to be approved by Shareholders. When the Audit Committee considers a matter, including those referred to it by the Operating Manager or an affected director or executive officer, where required by the Company's Conflicts of Interest and Related Party Transactions Policy or applicable law, it will determine if the potential conflict is a related party transaction and, if so, whether to approve the conflict pursuant to the terms of the LLC Agreement. For example, transactions in which the Company is a participant and any "related party" (any of our directors, executive officers, Shareholders beneficially owning greater than 5% of our voting securities, or immediate family members of any of the foregoing) has a direct or indirect material interest that is required to be disclosed pursuant to Item 404 of Regulation S-K under the Exchange Act, will be approved and/or ratified by the Board or by the Audit Committee or a committee appointed by the Board consisting solely of disinterested directors pursuant to the Company's Conflicts of Interest and Related Party Transactions Policy. Any directors who are involved in such transaction will be recused from all discussions and decisions by the Board, the Audit Committee or other applicable appointed committee. In addition, if required by the Advisers Act or applicable law, the Audit Committee will review and potentially approve conflicts of interest. If a potential conflict of interest is not required to be addressed by the Audit Committee, by the Company's Conflicts of Interest and Related Party Transactions Policy or applicable law, the resolution of the conflict will depend on the exercise of the Company's and the Operating Manager's discretion in light of the relevant facts and circumstances at the time, including the immediate and long-term interests of the relevant PIMCO Clients, including the Company and its respective Portfolio Assets, as applicable. The specific weight ascribed to each of the relevant factors is a subjective judgment about which reasonable people may differ, and such judgments will remain in the Company's and the Operating Manager's complete discretion. For the avoidance of doubt, the Company is not required to and generally does not expect to seek Board or Shareholder approval to manage the conflicts of interest described herein or other potential conflicts of interest that may arise from time to time unless required by applicable law, the LLC Agreement, the Company's Conflicts of Interest and Related Party Transactions Policy or the Operating Agreement. Furthermore, any prohibition or restriction contained in the LLC Agreement applies only at the Company and Series levels and does not apply to any transaction by one or more of the Portfolio Assets. There is no guarantee that the policies and procedures adopted by the Company, the terms of the LLC Agreement, the terms and conditions of the Operating Agreement or the policies and procedures adopted by the Operating Manager and its affiliates, will enable us to identify, adequately address or mitigate these conflicts of interest.

By acquiring the Shares, each Shareholder is deemed to acknowledge and agree that: (i) the Operating Manager and their respective affiliates are authorized to engage, without liability to the Company, the Series or the Shareholders, in any or all of the activities of the type or character described or contemplated in the LLC Agreement, "*Item 1A.—Risk Factors*" above, this section "*Potential Conflicts of Interest*" and the Operating Agreement whether or not such activities have or could have an effect on the Company's or the Series' affairs or on any Portfolio Assets; (ii) no such activity will in and of itself constitute a breach of the LLC Agreement or of any duty owed by any such person to the Shareholders or the Company or the Series; and (iii) the public availability of the LLC Agreement and the distribution of the Company's confidential private offering memorandum (as amended, restated, supplemented or otherwise modified from time to time) prior to the closing date as of which such Shareholder is admitted to the Company will be deemed to constitute disclosure of all such activities provided prior to such Shareholder making any subscription. The rights of Shareholders under the LLC Agreement and Delaware law with respect to the Company may differ from rights of Shareholders in other entities organized under Delaware law. To the extent that prospective investors would benefit from an independent review, such benefit is not available through Simpson Thacher & Bartlett LLP or other legal counsel or through the Operating Manager or any of their respective affiliates.

#### Conflicts Generally
The Operating Manager, the Company's administrative agent (the "Administrative Agent"), the Company's custodian (the "Custodian"), the Dealer Manager and their respective affiliates act as general partner, manager, managing member, investment adviser, agent and administrator, custodian and prime broker, respectively, or carry out other functions as may be required in relation to or be otherwise involved in or with, other companies and clients which have similar objectives to those of the Company and with other businesses in general. The Operating Manager, the Administrative Agent, the Custodian and the Dealer Manager and their respective affiliates may also conduct business with Shareholders which invest in the Company, or may provide other consideration to such Shareholders or recognized agents. It is therefore possible that any of them may have potential conflicts of interest with the Company.

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In addition, any of the foregoing may deal, as principal or agent, with the Company for the Company's account; provided that such dealings are subject to any limitations set forth in the LLC Agreement.

#### Conflicts of Interest
Conflicts of interest exist and may arise in the future as a result of the relationships among PIMCO, the Operating Manager or any of their respective affiliates, on the one hand, and the Company generally, a Series, or any of the Shareholders, on the other hand. Whenever a potential conflict arises among PIMCO, the Operating Manager or any of their respective affiliates, on the one hand, and the Company generally, a Series, or any of the Shareholders, on the other hand, the Board or the Operating Manager may, but shall not be required to, resolve that conflict by seeking approval from a committee of our independent directors (which is our Audit Committee). Our LLC Agreement contains provisions that reduce or eliminate certain of the duties of the Board, including fiduciary duties, to the Company, the Series, and our Shareholders. Our LLC Agreement also restricts the remedies available to Shareholders and Members for actions taken that without those limitations might constitute breaches of duty, including fiduciary duties. See "*Item 1A. Risk Factors—Additional Risks Related to the Operation of the Company Generally—The LLC Agreement eliminates certain duties (including fiduciary duties) owed by the Board or other parties to the Company, the Members and the Shareholders. The Board, PIMCO, the Members, the Operating Manager, the Company's officers and their respective affiliates and certain Service Providers will be entitled to exculpation and indemnification resulting in limited right of action for Shareholders.*"

Under our LLC Agreement, the Board or the Operating Manager will not be in breach of its obligations under the LLC Agreement or its duties to us or our Shareholders if the resolution of the conflict of interest or the course of action in respect of the conflict of interest is:

• approved by a committee of our independent directors, the Audit Committee, although the Board or the Operating Manager is not obligated to seek such approval;

• on terms which are, in the aggregate, no less favorable to the Company generally or a Series, as applicable, than those generally being provided to or available from unrelated third parties;

• fair and reasonable to the Company generally or a Series, as applicable; or

• approved by the vote of Shareholders owning a majority of the outstanding Investor Shares, excluding any Investor Shares owned by PIMCO or any of its affiliates, although the Board or the Operating Manager is not obligated to seek such approval.

The Board or the Operating Manager may, but is not required to, seek the approval of such resolution from the Audit Committee, any other committee of our independent directors or our Shareholders. If the Board or the Operating Manager does not seek approval from the Audit Committee, any other committee of our independent directors or our Shareholders and the Board or the Operating Manager, as applicable, determines that the resolution or course of action taken with respect to the conflict of interest satisfies either of the standards set forth in the second and third bullet points above, then such determination shall be deemed valid and binding on all persons, and any resolution or course of action so approved shall not constitute a breach of the LLC Agreement or of any fiduciary or other duty existing at law or in equity, except in the case of a final, non-appealable judicial determination of actual fraud, willful misconduct, or bad faith by the Board or the Operating Manager, as applicable. Unless the resolution of a conflict is specifically provided for in our LLC Agreement, notwithstanding any duty existing at law or in equity, the Board, the Operating Manager or a committee of the Board consisting of independent directors, which is the Audit Committee, may consider any factors they determine in their sole discretion to consider when resolving a conflict of interest. Our LLC Agreement provides that the Board or the Operating Manager will be conclusively deemed to be acting in good faith if the Board or the Operating Manager, as applicable, reasonably believes that the determination made or not made is in or not adverse to the best interests of the Company generally or the applicable Series, or, with respect to resolutions of conflicts of interest pursuant to the second or third bullet points above, if the Board or the Operating Manager reasonably believes that the action or inaction meets the standard set forth therein.

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#### Fiduciary Duties
The Board is accountable to Shareholders, and the fiduciary duties owed to the Shareholders by the Board are prescribed by law and the LLC Agreement. The LLC Act provides that Delaware limited liability companies may in their limited liability company agreements expand, restrict or eliminate the duties, including fiduciary duties, otherwise owed by our directors, managers, controlling members, their affiliates and other persons to members, the limited liability company and other persons bound by the LLC Agreement.

The LLC Agreement contains various provisions modifying, restricting and eliminating the duties, including fiduciary duties, that might otherwise be owed by our directors, managers, controlling members and their affiliates. The Company has adopted these modifications to allow PIMCO, the Operating Manager and their respective affiliates to engage in transactions with us that would otherwise be prohibited by state-law fiduciary duty standards or subjected to enhanced scrutiny and to take into account the interests of other parties in addition to our interests when resolving conflicts of interest. Without these modifications, the ability of the Board and Audit Committee to make decisions involving conflicts of interest could be restricted. These modifications may be detrimental to the Shareholders because they restrict the remedies available to the Shareholders for actions that without those limitations might constitute breaches of duty, including a fiduciary duty, as described below, and they permit the Board and the Audit Committee to take into account the interests of third parties in addition to our interests when resolving conflicts of interest. See "*Item 1A. Risk Factors— Additional Risks Related to the Operation of the Company Generally—The LLC Agreement eliminates certain duties (including fiduciary duties) owed by the Board or other parties to the Company, the Members and the Shareholders. The Board, the Members, the Operating Manager, the Company's officers and their respective affiliates and certain Service Providers are entitled to exculpation and indemnification resulting in limited right of action for Shareholders.*"

#### LLC Agreement Modified Standards
The LLC Agreement contains provisions that modify or eliminate duties of or consent to conduct by the Board, the Operating Manager and its affiliates that might otherwise raise issues about compliance with fiduciary duties or applicable law. In addition to the other more specific provisions limiting the obligations of the Board, the LLC Agreement further provides that none of the Indemnified Parties will be liable to the Company generally, the Series, the Shareholders or any other person bound by the LLC Agreement for any losses due to any act or omission by any Indemnified Party in connection with the conduct of the business of the Company generally or the Series unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that such act or omission constitutes actual fraud, willful misconduct, gross negligence, bad faith, or a willful material and adverse breach of the LLC Agreement or applicable law.

#### Other Activities of the Operating Manager
Various potential and actual conflicts of interest are expected to arise from the overall activities of the Operating Manager and its affiliates for their own accounts and the accounts of other entities and/or clients, some of which are noted below. Furthermore, the Operating Manager and its affiliates serve as an adviser to other entities and/or clients, and expect to make decisions for their own accounts and for the accounts of other entities and/or clients advised by the Operating Manager that are different from those that will be made by the Operating Manager on behalf of the Company. Such conflicts may arise, for example, when entities, clients or affiliates of the Operating Manager acquire (i) securities or other instruments issued by a particular issuer and in certain assets owned by such issuer; and (ii) different parts of an issuer's capital structure (*e.g.*, where one or more entities and/or clients own senior debt obligations of an issuer and other entities and/or clients own junior debt or equity of the same issuer, or one or more entities and/or clients own public securities and other entities and/or clients own private securities, as well as other circumstances in which entities and/or clients acquire different securities of the same issuer). In such circumstances, matters such as decisions over the operations or activities of the issuer involved; negotiations over the terms and conditions of the asset; decisions with respect to amendments, consents or waivers; the targeted returns from the asset; the timeframe for, or method of, exiting the asset; or bankruptcy-related matters (including decisions over whether to trigger an event of default or over the terms of any workout) are likely to result in conflicts of interest.

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Similar conflicts of interest are likely to arise to the extent a Portfolio Asset is in competition with, is a customer of, or is a Service Provider to, assets owned by the Operating Manager, its funds, clients or affiliates (*e.g.*, assets in similar regions or markets may compete with respect to customers, tenants and/or purchasers). In order to minimize such conflicts, the Company may avoid acquiring certain assets or taking certain actions that would potentially give rise to conflicts of interest, which could have the effect of limiting the Company's opportunities. Alternatively, the Company might resolve the conflict by adopting a particular strategy (including disposing of an asset earlier than it otherwise would have if no conflict existed), which could result in a different outcome than might arise if the Company had adopted an otherwise different strategy. Most conflicts of interest will be resolved by the Operating Manager in its sole discretion; *provided*, *however*, the Operating Manager shall keep the Board and the Acquisition Committee reasonably informed on a periodic basis in connection with the foregoing. When making decisions where a conflict of interest may arise, the Operating Manager will endeavor to act in a fair and equitable manner as between the Company and other entities and/or clients; however, in certain instances the resolution of the conflict may result in the Operating Manager acting on behalf of itself, an affiliate or another entity or client (for example, by foreclosing on loans, putting an issuer into default and/or transacting with an issuer) in a manner that is not in the best interests, or is opposed to the interests, of the Company. Subject to the foregoing and applicable law, (i) the Operating Manager and its affiliates are expected to transact for their own accounts and for the accounts of other entities and/or clients in various securities or other instruments that are senior, *pari passu* or junior to, or have interests different from or adverse to, the securities or other instruments that are owned by the Company; (ii) other clients of the Operating Manager are expected to take interests alongside the Company, including in the same underlying assets, including pursuant to strategies that are the same or substantially similar to or different than that of the Company; (iii) in conducting business activities or acquiring assets for other business interests (whether different from or similar to those of the Company), the Operating Manager and any of their respective members, partners, officers, employees and affiliates, and officers or agents of the Company shall, except as specifically provided to the contrary herein, be under no duty or obligation to make business opportunities (including any opportunity to acquire assets) available to the Company; (iv) the Operating Manager and the officers or agents of the Company are authorized to combine purchase or sale orders on behalf of the Company together with orders for other accounts managed by the Operating Manager or its affiliates and to allocate the securities or other assets so purchased or sold, on an equitable basis, among such accounts; (v) the Operating Manager and its affiliates are expected to, subject to the LLC Agreement, engage in transactions that arrange for or provide financing or leverage for the Company's activities and/or assets, and the Company and/or its assets are expected to, subject to the LLC Agreement, pledge, charge or sell assets (including pursuant to reverse repurchase agreements) to the Operating Manager and its affiliates in connection therewith (conversely, the Company could engage in comparable transactions that arrange for or provide financing or leverage to the Operating Manager's affiliates and/or their respective acquisitions); (vi) the Operating Manager expects to at certain times (subject to applicable law, including ERISA) be simultaneously seeking to purchase (or sell) assets for the Company and to sell (or purchase) the same asset for accounts, funds, clients or structured products for which it serves as manager now or in the future, or for its clients or affiliates, and to enter into cross trades (including similar transactions such as novations of derivatives transactions) in such circumstances, including with respect to securities or other assets that may be illiquid and difficult to value, as discussed further below; and (vii) the Operating Manager and its affiliates are expected to be retained from time to time to act as Service Providers to, or to otherwise be utilized by or engage in transactions with, the Company or any SPVs (for example, the Company may acquire loans from an origination company or another person that is an affiliate of the Company, and such origination company or other person may also serve as servicer of such loans). In addition, the Operating Manager and its affiliates are expected to, from time to time, act as principal for their own account in connection with the Company's acquisitions and other transactions, including buying securities and other assets as principal from, and selling securities and other assets as principal to, the Company, if permitted by and in accordance with applicable law and PALCO's governing documents. The Operating Manager and its affiliates may retain any profits that they make in such transactions. The Operating Manager and its affiliates may also act as broker or agent for such transactions and receive fees in connection therewith, which amounts shall not be considered Special Fees or otherwise offset any fees or amounts payable to the Operating Manager or its affiliates. These other relationships may also result in securities laws restrictions on transactions in these instruments by the Company and otherwise create potential conflicts of interest for the Operating Manager.

As noted above, the Company may acquire a tranche of a Structured Instrument where, at the same or different time, another client of the Operating Manager acquires a different tranche of the same Structured Instrument, which tranche's interests may be adverse to other tranches. Similarly, the Company and its assets may contribute other assets to, create or otherwise sponsor Structured Instruments in which it and other clients of the Operating Manager and its affiliates hold positions in different and potentially adverse tranches; conversely, the Company may also acquire (sometimes along with other clients of the Operating Manager and/or its affiliates) Structured Instruments

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(at the same or a different level of the capital structure) that are created, managed or otherwise sponsored by the Operating Manager, its affiliates and/or other clients of the Operating Manager. In addition, the Company may acquire similar types of Structured Instruments where the assets were contributed, created or otherwise sponsored by other investment managers or unaffiliated funds. The Operating Manager and its affiliates also may cause another client to purchase from, or sell assets to, an entity, such as a Structured Instrument, in which the Company may have an interest, potentially in a manner that will have a material adverse effect on the Company.

Conflicts of interest are expected to also arise where, for example, the Company holds certain loans or equity of an issuer, and that same issuer has issued other loans, equity or other instruments that are owned by other clients of the Operating Manager or by an entity, such as a Structured Instrument, in which other clients of the Operating Manager have an interest; in such circumstances, the Operating Manager may take actions with respect to the assets held by another client that are material and adverse to the Company, for example, by foreclosing on loans, disposing of equity or by putting an issuer into default. In negotiating the terms and conditions of any such instruments, or any subsequent amendments or waivers, the Operating Manager may find that the interests of the Company and the interests of one or more other clients of the Operating Manager could conflict. In these situations, decisions over whether to make an acquisition, proxy voting, corporate reorganization, how to exit an asset, the order in which the Company and other clients of the Operating Manager exit assets, the servicing of loans or bankruptcy matters are likely to result in conflicts of interest. Similarly, if an issuer in which the Company and one or more other entities or clients advised by the Operating Manager directly or indirectly hold different classes of securities (or other assets, instruments or obligations issued by such issuer or underlying assets of such issuer) encounters financial problems, decisions over the terms of any restructuring or workout are likely to raise conflicts of interests (including, for example, conflicts over proposed waivers and amendments to debt covenants). For example, a debt holder may be better served by a liquidation of the issuer in which it may be paid in full, whereas an equity or junior bond holder might prefer a reorganization that holds the potential to create value for the equity holders. Although in some cases the Operating Manager may refrain from taking certain actions or making acquisitions on behalf of its clients because of the existence of or perceived appearance of conflicts (potentially disadvantaging the clients (including the Company) on whose behalf the actions are not taken or acquisitions not made), in other cases the Operating Manager will not refrain from taking actions or making acquisitions on behalf of some clients that have the potential to disadvantage other clients (including the Company). Examples of when such determinations may be made include, but are not limited to, (i) where the Operating Manager or its affiliates are providing (or may provide) advice or services to an entity involved in such activity or transaction, (ii) where the Operating Manager or an affiliate may be engaged in the same or a related activity or transaction to that being considered on behalf of the client (including the Company), (iii) where there are political, public relations, or other reputational considerations relating to counterparties or other participants in such activity or transaction or (iv) where such activity or transaction on behalf of or in respect of an Operating Manager-advised entity, account or client could affect in tangible or intangible ways the Operating Manager, its affiliates, and/or other Operating Manager-advised entities, accounts or clients (including the Company).

Matters approved by the Operating Manager, Audit Committee or a majority in interest of the Shareholders will be final and binding on the Company, Shareholders, the Related Acquisition Vehicles, notwithstanding that the Operating Manager, Audit Committee or such majority in interest may also be conflicted in making their decision.

Certain Portfolio Assets may engage in activities or take actions that adversely impact the Company or its assets. With respect to Portfolio Assets for which it does not exercise influence or control, the Operating Manager will likely have limited or no ability to impact such matters. In addition, if other clients of the Operating Manager have a controlling interest and exercise influence or control over the management or operational decisions of a Portfolio Asset, such decisions may, at times, be in direct conflict with the interests of the Company. Furthermore, with respect to Portfolio Assets for which it does exercise influence or control, there can be no assurance that the Operating Manager will be able to impact matters that adversely or materially impact the Company or its assets; for example, directors appointed by the Operating Manager will have duties to persons other than the Company and/or may recuse themselves from matters presenting actual or potential conflicts of interest.

The Company may be unable or limited in its ability to acquire Portfolio Assets or take certain actions with respect to Portfolio Assets (including taking "active" positions with respect to such Portfolio Assets) due to the Operating Manager's duties to other clients or under applicable law (including the Advisers Act, the Investment Company Act and ERISA) or by the Operating Manager's intention to avoid certain potential conflicts of interest or

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regulatory issues or obligations, and individual members of the Audit Committee may be subject to similar constraints (or unable to participate in certain Company matters) due to similar considerations. Similarly, the Operating Manager may choose or be required to take certain actions (including disposing of assets owned by the Company and/or other clients) due to such issues, obligations or potential conflicts. In order for the Operating Manager to adhere to its applicable fiduciary obligations as well as to address and/or mitigate conflicts of interest, it may not be possible or appropriate to make available resources of the Operating Manager that might be relevant to particular decisions by the professionals responsible for the Company's strategy. Such restrictions could result in such professionals making acquisition or other decisions for the Company that are different from the decisions they would make if there were no such restrictions.

It is expected that the Company competes with PIMCO, PIMCO-sponsored funds or entities or other affiliates of PIMCO with respect to opportunities; similarly, it is expected that certain Portfolio Assets will be in competition with assets owned by or affiliated with PIMCO, PIMCO-sponsored entities or other affiliates of PIMCO. For example, assets in similar geographic regions or markets may compete with respect to customers, tenants and/or purchasers. PIMCO is subject to conflicts of interest in resolving such matters; for instance, PIMCO may be incentivized to use Company information for the benefit of a competitor entity, or to direct business to entities with respect to which PIMCO expects to receive higher fees or other compensation.

The Operating Manager and its affiliates expect to continue to sponsor and manage new vehicles as they continue to develop their asset management and related businesses, including by engaging in strategic transactions involving the acquisition of or investment in other financial services-related companies or vehicles. Strategic transactions pursued by the Operating Manager or its affiliates for their own accounts may overlap or compete with potential opportunities for clients and accounts managed by the Operating Manager (including the Company), and the Operating Manager or its affiliates may be incentivized to pursue such strategic transactions exclusively or predominantly for their own accounts. Furthermore, any overlap among future vehicles and businesses could give rise to additional conflicts of interest, such as those related to competition for the same or related opportunities, allocation of resources and competition for capital from investors. The Operating Manager may also be incentivized or decline to pursue a transaction for a client (including the Company) due to the potential impact of such transaction on the Operating Manager, its clients and/or its affiliates. Such transactions may involve multiple additional levels of fees and other asset-based or performance-based compensation, and the Operating Manager may or may not (depending on the circumstances) reduce or waive its management, performance and incentive fees or other compensation, as applicable, so that Shareholders do not indirectly bear the economic burden of such amounts in excess of what they would have borne if such entity or product were not subject to management, performance and incentive fees, as applicable. The Operating Manager could be incentivized to structure such transactions in a manner that avoids any such reduction or waiver. In addition, even if the Operating Manager does reduce or waive such fees or other compensation, the Operating Manager may still be incentivized to allocate assets to entities and products advised by or affiliated with the Operating Manager (for example, to increase the AUM of, or otherwise provide support to, such entities, products or lines of business).

Although the principals and employees of the Operating Manager will devote as much time to the Company as the Operating Manager deems appropriate, the principals and employees may have conflicts in allocating their time and services among the Company and the other accounts now or hereafter advised by the Operating Manager and/or its affiliates. Such principals and employees will also have ownership or other interests in such other accounts as well as other outside interests, all of which may influence their decisions on Company-related matters.

The Operating Manager, the Company's administrative agent and the Company's custodian will from time to time act as investment managers, sub-advisors, administrative agents or custodians in relation to, or otherwise be involved with, other companies established by parties other than the Company. Such companies may have similar objectives to the Company. Should a conflict of interest arise, the Operating Manager or Audit Committee, as applicable, will endeavor to ensure that it is resolved fairly, to the extent it is in a position to do so.

The Company is expected to make acquisitions involving, or engage in activities with, parties that have relationships with, or who are employed by, the Operating Manager, its affiliates and/or their respective personnel, including their actual or prospective clients or investors. For example, the Company may (directly or indirectly, including through a Portfolio Asset, joint venture or other instrument) make loans to such parties, or offer products or services for purchase by such parties. In addition, personnel of the Operating Manager or its affiliates may take

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positions in a personal capacity alongside the Company in certain assets. Such assets and activities will involve conflicts of interest; in particular, (i) the Company may be less incentivized to negotiate transaction terms with, or exercise enforcement or default rights against, such parties and (ii) acquisitions or other actions by the Company may, directly or indirectly, benefit such parties and/or their assets.

In connection with its strategy, the Company could acquire rights arising under existing contractual arrangements (including agreements with joint venture partners, servicers, originators and Portfolio Assets), such as rights of first offer, rights of first refusal, non-competition rights, exclusivity rights and purchase rights, from, and/or may seek to transfer such rights to, the Operating Manager, other Operating Manager-advised entities or clients or other affiliates of the Operating Manager. Any transfer of rights may or may not involve the receipt by the transferor of a purchase price or direct consideration, depending on the circumstances. Such activities are likely to give rise to certain conflicts of interest. In particular, (i) any such rights will likely be illiquid, and if sold will likely be difficult to value (see "*Item 1. Business—The Company's Approach to Acquiring Portfolio Assets—Acquisition Guidelines—Valuation of Portfolio Assets – Determination of Net Asset Value*" above); (ii) the Operating Manager will be conflicted in determining whether to assign a value to any such right, as well as in determining any value assigned thereto; (iii) the Operating Manager may be incentivized to pursue opportunities arising under such arrangements (including due to a desire to maintain a long-term relationship with a transaction counterparty), and may forgo other attractive opportunities for the Company as a result; and (iv) to the extent the Company's rights are dependent on its ownership of a Portfolio Asset, the Operating Manager may be incentivized to extend such Portfolio Asset's duration to enable such rights to be transferred to another entity. Conversely, the Company may not (or may be unable to) acquire or dispose of such rights, which could give rise to certain conflicts of interest; for instance, if another client of the Operating Manager has a right of first offer with respect to transaction types, the Company's ability to pursue such transactions could be constrained if it does not acquire such right. In addition, the documentation relating to any assignment of such rights could be complex, difficult to enforce and (among other things) potentially expose the Company to the liabilities of another related entity.

The Company expects to acquire positions in products advised by or affiliated with the Operating Manager, including those where the Operating Manager or an affiliate is attempting to establish new products and/or lines of business. For example, the Company may in the future acquire positions in a REIT or a Structured Instrument that is established by, and the investors of which are, one or more other PIMCO-advised entities or accounts. Such acquisitions may involve multiple additional levels of fees and other asset-based or performance-based compensation, and the Operating Manager may or may not (depending on the circumstances) reduce or waive its management, performance and incentive fees or other compensation, as applicable, so that Shareholders do not indirectly bear the economic burden of such amounts in excess of what they would have borne if such fund or product were not subject to management, performance and incentive fees, as applicable, and the Operating Manager will be incentivized to structure such transactions in a manner that avoids any such reduction or waiver. However, even if the Operating Manager does reduce or waive such fees or other compensation, the Operating Manager may still be incentivized to allocate assets to entities and products (including Structured Instruments) advised by or affiliated with the Operating Manager (for example, to increase the AUM of, or otherwise provide support to, such entities, products or lines of business), and may be incentivized to delay the disposition or liquidation of such assets. The Company may also bear certain other fees and expenses with respect to any such vehicles managed or advised by the Operating Manager or its affiliates and such fees and expenses may not be offset against the Management Fee. The Company also may provide some or all of the required "risk retention" capital with respect to Structured Instruments managed or sponsored by the Operating Manager and/or its affiliates, which could have the effect of supporting a product or line of business even if it is not in the Company's best interest to do so. Furthermore, although the Company is permitted to allocate assets to Operating Manager-affiliated instruments (including entities and Structured Instruments), Shareholders should not expect the Operating Manager to have better information with respect to such assets than other holders have. Even if the Operating Manager has such information, it is not permitted to act upon it in a manner that disadvantages the other holders in such entities.

The Company has made and expects to continue to make acquisitions through joint ventures, strategic partnerships or similar arrangements with third parties, the terms of which will often provide for the payment of fees, incentive compensation, equity compensation and/or other amounts to such third parties. These amounts are typically borne (directly or indirectly) by the Company. Such amounts generally do not give rise to a reduction in the Management Fees or Performance Fees payable by the Company, and the Operating Manager may therefore be incentivized to pursue opportunities arising under such arrangements (including to maintain or develop a long-term or strategic relationship with a third party).

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The Dealer Manager is PIMCO Investments LLC, a wholly owned subsidiary of the Operating Manager. Furthermore, representatives of the Dealer Manager are often also employees or associated persons of the Operating Manager. Because of these affiliations with the Operating Manager, the interests of the Dealer Manager may conflict with the interests of the Shareholders. The Company or Dealer Manager also engages other affiliates or non-affiliates of the Operating Manager to serve as placement agents, sub-placement agents or distribution agents, or to otherwise participate in the distribution of the Shares. To the extent any such entities are affiliated with the Operating Manager, they will be subject to similar conflicts.

Allianz SE, along with its affiliates, is a worldwide asset management and financial services organization, and a major participant in global financial markets. As such, it acts as an investor, investment manager, advisor, lender, insurance provider, agent and principal, and has other direct and indirect interests, in the markets in which the Company and the Company's Portfolio Assets directly and indirectly transact. As a result, Allianz SE, the Operating Manager, and their affiliates, directors, partners, managers, members, officers and personnel, including those who may be involved in the management, sales, investment activities, business operations or distribution of the Company and the Portfolio Assets, are engaged in businesses and have interests other than that of managing the Company or the Portfolio Assets. The Company will not be entitled to compensation related to such businesses. These activities and interests include potential multiple advisory, transactional, financial and other interests in securities, instruments and companies that may be directly or indirectly purchased or sold by the Company or its Service Providers. Such activities and interests may give rise to conflicts of interest relating to the Company; for example, (i) the Company's willingness to negotiate terms or take actions with respect to an asset may be, directly or indirectly, constrained or otherwise impacted to the extent Allianz SE, the Operating Manager, and/or their affiliates, directors, partners, managers, members, officers or personnel are also interested therein or otherwise have a connection to the subject asset, such as serving as a trustee or board member thereof; (ii) Allianz SE, its clients and their respective affiliates may take actions that are materially adverse or harmful to the Company, but which the Company and the Operating Manager are unable to anticipate or control; (iii) certain legal or regulatory restrictions arising from the Company's affiliation with Allianz SE, the Operating Manager and/or their affiliates may prohibit or limit the Company's ability to make certain acquisitions or utilize certain counterparties or Service Providers; and (iv) the Company may make acquisitions with respect to which Allianz SE, the Operating Manager, and/or their affiliates, directors, partners, managers, members, officers or personnel function as Service Providers or are interested at different levels of the subject issuer's capital structure.

Specifically, the Company may, but is not required to, acquire directly or indirectly the Insurance Assets owned (in whole or in part), insured, reinsured and/or managed by Allianz SE and its affiliates or other affiliates of the Company. Allianz SE or its affiliates develop new insurance products for the market from time to time, some of which may compete with any Insurance Assets acquired by the Company. In writing new business, Allianz SE or its affiliates' considerations for new business credited, interest rates and related pricing may be different from those of the Insurance Assets. Policyholders of annuity products included in the Insurance Assets may from time to time seek to convert their annuity to, or otherwise allow their annuity to lapse in favor of, alternative products offered by Allianz SE or its affiliates or other affiliates of the Company, which actions, if substantial, could have a material negative impact on the expected economic benefits of such Insurance Assets. The Insurance Assets as well as Allianz SE and its affiliates and relevant other affiliates of the Company are subject to U.S. and non-U.S. regulations applicable to insurance-related businesses, such as minimum capitalization, minimum reserves and minimum liquidity requirements, which may adversely impact the returns of the Insurance Assets. Furthermore, Allianz SE or its affiliates or other affiliates of the Company may suspend reinsurance upon the occurrence of certain triggering events (such as certain recapture and termination provisions). Upon such an event, certain Insurance Assets may no longer be insured or reinsured by Allianz SE or its affiliates or other affiliates of the Company, and Allianz SE or its affiliates or other affiliates of the Company will have the sole discretion to lift the suspension and recommence of the insurance or reinsurance of such Insurance Assets. Other conflicts similar to those arising from the activities of the Operating Manager, its funds, clients and affiliates described elsewhere in this *"Item 13. Certain Relationships and Related Transactions, and Director Independence—Potential Conflicts of Interest*" section are also expected to arise from the activities of Allianz SE, its clients and affiliates. These are considerations of which Shareholders in the Company should be aware, and which may cause conflicts that could disadvantage the Company and its assets. Present and future activities of Allianz SE, its clients and affiliates may give rise to additional conflicts of interest.

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In connection with its strategy, the Company in the sole discretion of the Operating Manager may, in some cases along with other investors and/or other parties, take various forms of action ("Litigation Actions"), including issuing demand letters, making and defending claims, filing lawsuits and/or taking other dispute resolution-related measures. In connection with such Litigation Actions, the Company may be required to bear certain fees, costs, expenses and liabilities. Other clients of the Operating Manager that are or were holders in, or otherwise involved with, the subject assets may or may not (depending on the circumstances) be parties to such Litigation Actions, with the result that the Company may participate in Litigation Actions in which not all clients of the Operating Manager with similar assets may participate, and such nonparticipating clients may benefit from the results of such Litigation Actions without bearing or otherwise being subject to the associated fees, costs, expenses and liabilities. The Operating Manager, for example, typically does not pursue legal claims on behalf of its separately managed client accounts but these client accounts may benefit from litigation pursued on behalf of the Company.

#### Borrowing from the Operating Manager and/or its Affiliates
The Company may seek to borrow certain amounts from certain affiliates of the Operating Manager. However, these affiliates of the Operating Manager are under no obligation to lend any amounts to the Company and there can be no assurance that any affiliate of the Operating Manager will provide any such financings to the Company. Such potential borrowings may present numerous conflicts of interest, which may not be resolved in a manner that is favorable to the Company's interests.

#### Certain Potential Conflicts Relating to Expenses
The appropriate allocation of fees and expenses among the Company and other Operating Manager-advised entities or accounts often cannot be resolved by reference to a pre-existing formula and will require the exercise of discretion. In addition, it is expected that the Company will bear dead deal costs. While the Operating Manager has adopted policies and procedures designed to fairly and equitably allocate expenses, the Operating Manager will be subject to conflicts of interest in making such determinations, and there can be no assurance that errors will not arise in such allocations, or that any allocations (i) will reflect an entity's *pro rata* share of such expenses based on the amounts funded (or anticipated to be funded) / market value of the asset held (or anticipated to be held) by each entity managed by the Operating Manager or will otherwise be allocated appropriately, (ii) will be in proportion to the number of participating entities managed by the Operating Manager or the proportion of time spent on each such entity, or (iii) will not confer an economic benefit on other entities (including the Operating Manager and/or its affiliates) at the Company's expense. For instance, certain services relating to the Company's assets may also confer benefits on the Operating Manager (such as analytics or reporting that enables the Operating Manager to more efficiently review acquisition-related information, and (as further described below) analyzing the impact of actual or potential Company assets on the Operating Manager, its affiliates and their respective clients), and the Company will bear all fees, costs and expenses associated with such services notwithstanding such ancillary benefits. Similarly, the determination of whether an expense (for instance, the fees and expenses of Service Providers who work on Company-related matters) is appropriately borne by the Company or the Operating Manager often cannot be resolved by reference to a pre-existing formula and will require the exercise of discretion, and the Operating Manager will be subject to conflicts of interest in making such determinations. In particular, the Operating Manager will be incentivized to (i) classify expenses as borne by the Company or a Related Acquisition Vehicle as opposed to the Operating Manager and (ii) decrease the level or quality of third-party services provided to the Company to the extent such services are paid for by the Operating Manager.

For administrative and other reasons, the Operating Manager may (i) cause one or more vehicles managed by the Operating Manager (including the Company) to be invoiced for, advance or otherwise bear on a temporary basis all or a portion of an expense ultimately intended to be borne in whole or in part by another vehicle managed by the Operating Manager and/or (ii) make corrective allocations of expenses among such vehicles to reflect their appropriate share of such expenses. Such measures generally will not include the imposition of an interest charge or other payments designed to compensate (whether for time value, opportunity cost or otherwise) a particular vehicle for temporarily bearing a disproportionate share of expenses. If the Company uses in connection with its transactions, whether or not such transactions are ultimately consummated, or otherwise benefits from, the documentation, structuring or other technology used by other vehicles managed by PIMCO and its affiliates (including in transactions in which the Company does not participate), the Company may bear a portion of the expenses and fees associated with such documentation, structuring or other technology, as determined by the Operating Manager in its sole discretion.

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##### [**Table of Contents**](#toc)
Similarly, the Company may bear a portion of the organizational or other expenses incurred by such other vehicles, if the Operating Manager determines in its sole discretion that the Company utilized or otherwise benefitted from the documentation, structuring or other technology used by such other vehicles. The Operating Manager and/or its affiliates may also advance amounts to enable the Company to pay expenses relating to its organization and ongoing operations, including amounts relating to potential transactions consummated prior to the Company's initial sales to third party Shareholders, in which case the Company would subsequently reimburse the Operating Manager and/or its affiliates for such amounts, which reimbursement may or may not include an interest charge.

The Operating Manager expects to analyze the impact of actual or potential Company transactions on the Operating Manager, its affiliates and their respective clients. Such analysis may include the impact of regulatory requirements, the management of conflict of interest issues, and material non-public information issues and related trading restrictions. The Company will bear all fees, costs, expenses and liabilities relating to such analyses, even though the Operating Manager, its affiliates and their other respective clients may also benefit from or otherwise rely on such analyses; for example, such analysis may permit the Operating Manager's other clients to continue trading in the securities of an issuer that is an actual or potential Company asset. In addition, to the extent a transaction is not consummated due to these or other issues impacting the Operating Manager, its affiliates and their respective clients, such as reputational considerations, the Company will nevertheless bear the associated dead deal costs.

The Company may sometimes bear more than its *pro rata* share of expenses relating to a matter, in particular where other parties in a transaction (including other PIMCO Clients) are prohibited from or unwilling to bear such expenses for regulatory, contractual or other reasons. In such cases, the Company may bear such other parties' share of the expenses, notwithstanding that such other parties will still benefit from the associated services or actions. In addition, the allocation of expenses among the Company and other PIMCO Clients may in certain cases be based on estimates, which estimates may not be adjusted in light of actual information; the use of estimates may result in the Company bearing a greater share of expenses than it would have if actual information was used.

#### Valuation
The Operating Manager will fair value certain securities, loans or other instruments, including Platform Acquisitions, and will be subject to certain conflicts of interest in doing so. In particular, the Operating Manager may be incentivized to produce higher valuations in order to enhance Company performance and indirectly, increase any fees payable or amounts allocable to the Operating Manager or its affiliates in respect of the Company's performance. In addition, the Operating Manager may be incentivized to have the Company engage in cross trades to enable the Company or another Operating Manager-sponsored entity to liquidate in a timely manner, which cross trades would typically include assets that are illiquid and difficult to value.

#### Indemnification Agreements with Directors and Officers
We have entered into indemnification agreements with each of our directors and executive officers. Pursuant to the terms of these indemnification agreements, we must indemnify and advance expenses and costs incurred by our directors and executive officers in connection with any claims, suits or proceedings brought against such directors and executive officers as a result of their service. We also maintain a directors and officers insurance policy.

#### Director Independence
See "*Item 10. Directors, Executive Officers and Corporate Governance*" for information on director independence.

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##### [**Table of Contents**](#toc)

#### Item 14. Principal Accountant Fees and Services

#### Independent Registered Public Accounting Firm
For the period from March 11, 2025 (date of formation) to December 31, 2025, PricewaterhouseCoopers LLP ("PwC") served as our independent registered public accounting firm.

#### Audit and Non-Audit Fees
Aggregate fees that we were billed for the period from March 11, 2025 (date of formation) through December 31, 2025 by our independent registered public accounting firm, PwC, were as follows:

---

| | |
|:---|:---|
|  | **Period Ended<br>December 31, 2025** |
|  **Audit Fees<sup>(1)</sup>** | $- |
|  **Audit-related fees** |  |
|  **Tax fees** | 143 |
|  **All other fees** |  |
|  **Total** | $143 |

---

(1) Audit fees include amounts billed to us related to annual financial statement audit work, seed balance sheet audit work, quarterly financial statement reviews and review of SEC registration statements.

The Audit Committee of the Board was advised that there were no services provided by PwC that were unrelated to the audit of the annual fiscal year-end financial statements and the audit of the financial statements as of and for the period from March 11, 2025 (date of formation) to December 31, 2025 that could impair PwC from maintaining its independence as our independent auditor and concluded that it was independent.

#### Audit Committee Pre-Approval Policies and Procedures
Our Audit committee Charter requires the Audit Committee of our Board to approve in advance all audit and non-audit related services to be provided by our independent registered public accounting firm in accordance with the Audit Committee's pre-approval policies and procedures. All services reported in the Audit, Audit-related and Tax categories above were approved by the Audit Committee.

#### PART IV

#### Item 15. Exhibits and Financial Statement Schedules
The following exhibits are filed as part of this Annual Report or are hereby incorporated by reference to exhibits previously filed with the Securities and Exchange Commission:

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;3.1 | [Certificate of Formation (incorporated by reference to Exhibit 3.1 to the Registrant's Form 10 filed with the SEC on July 21, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525161296/d893291dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.2 | [Second Amended and Restated Limited Liability Company Agreement (incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on March 5, 2026).](http://www.sec.gov/Archives/edgar/data/2073537/000119312526094186/d61154dex31.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.3 | [Series Agreement of PIMCO Asset-Based Lending Company LLC - Series I (incorporated by reference to Exhibit 3.3 to the Registrant's Form 10 filed with the SEC on July 21, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525161296/d893291dex33.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.4 | [Series Agreement of PIMCO Asset-Based Lending Company LLC - Series II (incorporated by reference to Exhibit 3.4 to the Registrant's Form 10 filed with the SEC on July 21, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525161296/d893291dex34.htm) |

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;3.5 | [Certificate of Registered Series of PIMCO Asset-Based Lending Company LLC - Series I (incorporated by reference to Exhibit 3.2 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525283334/d17660dex32.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;3.6 | [Certificate of Registered Series of PIMCO Asset-Based Lending Company LLC - Series II (incorporated by reference to Exhibit 3.3 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525283334/d17660dex33.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.1\* | [Description of Registrant's Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.](d112132dex41.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.2\* | [Form of Subscription Agreement for US Investors.](d112132dex42.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.3\* | [Form of Subscription Agreement for non-US Investors.](d112132dex43.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.4 | [Amended and Restated Distribution Reinvestment Plan (incorporated by reference to Exhibit 4.3 to the Registrant's Quarterly Report on Form 10-Q filed with the SEC on November 14, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525283334/d17660dex43.htm) |
| &nbsp;&nbsp;&nbsp;&nbsp;4.5 | [Share Repurchase Plan (incorporated by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed with the SEC on March 5, 2026).](http://www.sec.gov/Archives/edgar/data/2073537/000119312526094186/d61154dex103.htm) |
| 10.1 | [Second Amended and Restated Operating Agreement (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed with the SEC on March 5, 2026).](http://www.sec.gov/Archives/edgar/data/2073537/000119312526094186/d61154dex101.htm) |
| 10.2 | [Second Amended and Restated Dealer Manager Agreement (incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed with the SEC on March 5, 2026).](http://www.sec.gov/Archives/edgar/data/2073537/000119312526094186/d61154dex102.htm) |
| 10.3 | [Expense Limitation and Reimbursement Agreement (incorporated by reference to Exhibit 10.3 to the Registrant's Form 10 filed with the SEC on July 21, 2025).](http://www.sec.gov/Archives/edgar/data/2073537/000119312525161296/d893291dex103.htm) |
| 10.4\* | [Letter Agreement.](d112132dex104.htm) |
| 10.5\* | [Form of Indemnification Agreement.](d112132dex105.htm) |
| 10.6\* | [Credit and Security Agreement, dated as of December 12, 2025, among PALCO LVS 6 LP, a subsidiary of the Company, as the Borrower and the Program Manager, UMB Bank, National Association, not in its individual capacity, but solely as trustee for PAL CL Trust 1, a subsidiary of the Company, as the Trust, Banco Santander S.A., New York Branch and the Other Financial Institutions from time to time party thereto as Lenders, and Banco Santander S.A., New York Branch as Administrative Agent.](d112132dex106.htm) |
| 10.7\* | [TBMS/ISMA Global Master Repurchase Agreement, dated as of September 23, 2009 (together with each other annex, schedule or appendix thereto) between Barclays Bank PLC and Pacific Investment Management Company LLC.](d112132dex107.htm) |
| 14.1\* | [Code of Business Conduct and Ethics.](d112132dex141.htm) |
| 19.1\* | [Insider Trading Policies and Procedures (included in Exhibit 14.1).](d112132dex141.htm) |
| 21.1\* | [List of Subsidiaries.](d112132dex211.htm) |
| 31.1\* | [Certification of Principal Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.](d112132dex311.htm) |

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##### [**Table of Contents**](#toc)

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| | |
|:---|:---|
| 31.2\* | [Certification of Principal Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as amended.](d112132dex312.htm) |
| 32.1\* | [Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](d112132dex321.htm) |
| 101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | Inline XBRL Taxonomy Extension Schema with Embedded Linkbase Documents. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

\* Filed herewith.

The agreements and other documents filed as exhibits to this Annual Report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

#### Item 16. Form 10-K Summary
None.

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##### [**Table of Contents**](#toc)

#### SIGNATURES
Pursuant to the requirements of <u>Section 13</u> or <u>15(d) of the Securities Exchange Act of 1934</u>, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

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| | | |
|:---|:---|:---|
|  |  | **PIMCO Asset-Based Lending Company LLC** |
| **Date:** March 31, 2026 | By: | /s/ Jason Mandinach |
|  |  | Jason Mandinach |
|  |  | Principal Executive Officer |

---

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Date:** March 31, 2026 | By: | /s/ Jason Mandinach |
|  |  | Jason Mandinach |
|  |  | Principal Executive Officer |
| **Date:** March 31, 2026 | By: | /s/ Crystal Porter |
|  |  | Crystal Porter |
|  |  | Principal Financial Officer and Principal Accounting Officer |
| **Date:** March 31, 2026 | By: | /s/ Richard LeBrun |
|  |  | Richard LeBrun |
|  |  | Chairman of the Board |
| **Date:** March 31, 2026 | By: | /s/ Christian Clayton |
|  |  | Christian Clayton |
|  |  | Director |
| **Date:** March 31, 2026 | By: | /s/ David Flattum |
|  |  | David Flattum |
|  |  | Director |
| **Date:** March 31, 2026 | By: | /s/ Debra Huddleston |
|  |  | Debra Huddleston |
|  |  | Director |
| **Date:** March 31, 2026 | By: | /s/ Jeff Mayer |
|  |  | Jeff Mayer |
|  |  | Director |
| **Date:** March 31, 2026 | By: | /s/ Jeff Gelfand |
|  |  | Jeff Gelfand |
|  |  | Director |

---

## Exhibit 4.1

**Exhibit 4.1** 

**DESCRIPTION OF THE REGISTRANT'S SECURITIES** 

**REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934** 

*All capitalized terms used herein but not defined shall have the meaning ascribed to them in the Company's annual report on Form 10-K, filed with the Securities and Exchange Commission (the "SEC") on March 31, 2026.* 

**Description of our Shares** 

There is currently no market for our Shares, and we do not expect that a market for our Shares will develop in the future. We do not intend for the Shares to be listed on any national securities exchange. There are no outstanding options or warrants to purchase our Shares. Under the terms of the LLC Agreement, except as required by law, the liability of each Shareholder in such capacity shall be limited to the amount of such Shareholder's total investments and pro rata share of any undistributed profits. Except as may otherwise be provided in the LLC Agreement or in any class designation and except as required by law, after the payment of all subscription proceeds for the Shares of any Series purchased by such Shareholder, no Shareholder shall have any further obligations to the Company, be subject to any additional assessment or contribute any additional capital, or to loan any funds, with respect to such Series (except for the return of distributions under certain circumstances as required by Sections 18-215, 18-218, 18-607 and 18-804 of the LLC Act), unless otherwise agreed by the Company and the Shareholder. No Shareholder shall have any personal liability on account of any obligations and liabilities of, including any amounts payable by, the applicable Series under or pursuant to, or otherwise in connection with, the LLC Agreement or the conduct of the business of the Company solely by reason of being a Shareholder of the applicable Series.

**Summary of the LLC Agreement** 

*The following is a summary of the material provisions of the LLC Agreement. The LLC Agreement sets forth the terms and conditions upon which we conduct our business and affairs and it sets forth the rights and obligations of our Shareholders. This summary is not complete and is subject to and qualified by the detailed provisions of the LLC Agreement and the applicable series agreement for each Series. Potential investors should study the LLC Agreement and the applicable series agreement for each Series carefully before making any investment in our Shares. The LLC Agreement and the applicable series agreement for each Series are filed as exhibits to the Annual Report on Form 10-K to which this exhibit relates.* 

***Name and Address***

We conduct business under the name "PIMCO Asset-Based Lending Company LLC" with our principal office and place of business at 650 Newport Center Drive, Newport Beach, CA 92660 (unless we change the office or place of business).

***Purpose***

Under our LLC Agreement we are permitted to engage, directly or indirectly, in any business activity that is approved by the Board and that lawfully may be conducted by a limited liability company formed under the LLC Act. Under the applicable series agreement, each of Series I and Series II is permitted to engage, directly or indirectly, in any business activity that is approved by the Board and that lawfully may be conducted by a registered series of a limited liability company formed under the LLC Act.

***Establishment and Nature***

We are a series limited liability company with series established pursuant to Sections 18-215 or 18-218 of the LLC Act. In accordance with the LLC Act, each Series is a separate series of assets or limited liability company interests of the Company and not a separate legal entity. Overall responsibility for the Company's oversight rests with our Board. To the extent permitted by applicable law, the Board may delegate any of its rights, powers and authority to, among others, any committee of the Board, the officers of the Company or the Operating Manager.

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***Our Management***

*Our Management* 

Except as otherwise specifically provided in our LLC Agreement, the Board has complete and exclusive discretion in carrying out its responsibilities and affairs and is authorized to employ all powers necessary or advisable to carry out our purposes and policies, conduct our business and affairs and exercise our powers. The Board has delegated to our Operating Manager certain asset recommendation functions, subject to the Board and the Acquisition Committee's supervision. Notwithstanding the foregoing, the Acquisition Committee (pursuant to a delegation of authority from the Board and, in certain instances, the Board or a committee of the Board) is responsible for making capital allocation and acquisition decisions proposed by the Operating Manager.

The Board has the sole and absolute discretion to accept or refuse to accept the admission of any member of the Company or any Series. Except to the extent limited by Delaware law or our LLC Agreement, the Board may delegate any or all of its duties under our LLC Agreement to any person, including any committee of the Board or any affiliates of PIMCO.

*Shareholders' Powers* 

Except as otherwise specifically provided in the LLC Agreement, no Shareholder that holds Investor Shares can participate in or have any control over our business and affairs or have any right or authority to act for, or to bind or otherwise obligate, us.

***Capital Contribution***

*Our Contribution* 

On March 11, 2025, an affiliate of PIMCO purchased 40 V Shares of Series I at a purchase price of $25.00 per Share and 40 V Shares of Series II at a purchase price of $25.00 per Share. On July 1, 2025, an affiliate of PIMCO purchased 1,500 Anchor II Shares of Series I at a purchase price of $10.00 per Share and 1,500 Anchor II Shares of Series II at a purchase price of $10.00 per Share. Since the commencement of operations, the Company received subscriptions of $26,835,125 from an affiliate of PIMCO and, in return, issued Anchor II Shares of Series II, to assist the Company with initial operational and acquisition activities.

*Shareholders' Contribution* 

Each Series offers the applicable Investor Shares to eligible investors on a monthly basis at NAV per Share (generally measured as of the end of the month immediately preceding the date of the allocation of Shares to subscribing Shareholders), plus any applicable upfront commissions and Dealer Manager Fees.

***No Further Contribution***

After Shareholders pay for their Shares, Shareholders will not have any further obligations to us or be required to contribute any capital to, or loan any funds to, us. However, under certain circumstances, a Shareholder may be required to return distributions made to them in violation of Delaware law.

***Classes of Shares***

Other than Anchor III Shares, which represent a class of limited liability company interests only in Series II, each class of Shares described below represents the applicable class of limited liability company interest in each of Series I and Series II. The same class of each Series has the same terms unless otherwise indicated.

*Investor Shares* 

Holders of Investor Shares have equal rights and privileges with each other except as noted below in respect of certain fees and expenses (including the Management Fee, Performance Fee and Dealer Manager Fees) and certain other terms. Holders of Investor Shares are not entitled to nominate, remove or participate in the appointment of directors of the Company.

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*Anchor I Shares* 

The Company offers the Anchor I Shares in two separate series: Series I and Series II. Each Series is a separate series under Delaware law and not a separate legal entity. Series I has elected to be treated as a corporation for U.S. tax purposes and Series II has elected to be treated as a partnership for U.S. tax purposes. Anchor I Shares have equal rights and privileges with other classes of Investor Shares.

The minimum initial purchase amount for U.S. investors is $10,000 for the Anchor I Shares. The minimum initial purchase amount for non-U.S. investors is $1,000,000 for the Anchor I Shares. The minimum subsequent purchase amount is $1,000 for Anchor I Shares, except for additional purchases pursuant to the DRIP, which are not subject to a minimum purchase amount. The minimum purchase amount for each type of Shares can be modified or waived in the sole discretion of the Company or the Dealer Manager, including for certain financial firms that submit orders on behalf of their customers, our officers and directors and certain employees of PIMCO, including its affiliates, vehicles controlled by such employees and their extended family members. The Company and the Dealer Manager each reserves the right to designate and re-designate the status of financial intermediaries in its sole discretion.

So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee monthly in arrears in an amount equal to 0.50% per annum of the month-end NAV attributable to the Anchor I Shares; provided that the Management Fee is reduced by any applicable Special Fees; provided, however, that the Management Fee is not ****reduced for any Other Fees. In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares.

The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, instead be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to be entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to, with respect to the Anchor I Shares: (i) first, if the Total Return with respect to the Anchor I Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount (any such excess, "Excess Profits"), 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 5.0% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause (any such amount, the "Catch-Up"); and second, to the extent there are remaining Excess Profits, 5.0% of such remaining Excess Profits.

The Dealer Manager receives a Dealer Manager Fee of 3.5% of the transaction price of the Anchor I Shares.

The minimum commitment size for Anchor Share distribution partners is $100 million for the Anchor I Shares. The Anchor I Shares have an aggregate commitment capacity of $500 million. After the aggregate commitment capacity has been exhausted, determined on a first-come, first-served basis based on the time-stamp of when the Company receives the completed indication of interest ("Indication of Interest"), the Anchor I Shares will no longer be available for subscription.

Of the $500 million aggregate commitment capacity, $50 million is available to only RIA Advisory Board members, in which case there is $10 million minimum commitment amount for the applicable shareholders. The $50 million of the RIA reserved capacity is available on a first-come, first-serve basis, and once it is fully subscribed, future purchases can be made in Anchor I Shares, until the aggregate commitment capacity of the Anchor I Shares has been exhausted. The offering periods, minimum commitment size and/or capacity for Anchor I Shares may be waived, extended or otherwise modified from time to time or at any time in the sole discretion of the Company or the Operating Manager.

We expect that the Company will, in its sole discretion, conduct a quarterly share repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last business day of the calendar quarter prior to the commencement of a share repurchase; provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law.

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Until the 2<sup>nd</sup> anniversary of the Launch Date, the Anchor I Shares requested to be repurchased shall be subject to an Early Repurchase Fee of 5.0% of the NAV of the Anchor I Shares repurchased.

Holders of Anchor I Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*Anchor II Shares* 

The Company offers the Anchor II Shares in two separate series: Series I and Series II. Each Series is a separate series under Delaware law and not a separate legal entity. Series I has elected to be treated as a corporation for U.S. tax purposes and Series II has elected to be treated as a partnership for U.S. tax purposes. Anchor II Shares have equal rights and privileges with other classes of Investor Shares.

The minimum initial purchase amount for U.S. investors is $10,000 for the Anchor II Shares. The minimum initial purchase amount for non-U.S. investors is $1,000,000 for the Anchor II Shares. The minimum subsequent purchase amount is $1,000 for Anchor II Shares, except for additional purchases pursuant to the DRIP, which are not subject to a minimum purchase amount. The minimum purchase amount for each type of Shares can be modified or waived in the sole discretion of the Company or the Dealer Manager, including for certain financial firms that submit orders on behalf of their customers, our officers and directors and certain employees of PIMCO, including its affiliates, vehicles controlled by such employees and their extended family members. The Company and the Dealer Manager each reserves the right to designate and re-designate the status of financial intermediaries in its sole discretion.

So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee monthly in arrears in an amount equal to 0.75% per annum of the month-end NAV attributable to the Anchor II Shares; provided that the Management Fee is reduced by any applicable Special Fees; provided, however, that the Management Fee is not ****reduced for any Other Fees. In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares.

The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, instead be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to ****be entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to, with respect to the Anchor II Shares: (i) first, if the Total Return with respect to the Anchor II Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount, 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 7.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause; and (ii) second, to the extent there are remaining Excess Profits, 7.5% of such remaining Excess Profits.

The Dealer Manager receives a Dealer Manager Fee of 3.5% of the transaction price of the Anchor II Shares.

The minimum commitment size for Anchor Share distribution partners is $10 million for the Anchor II Shares. Anchor II Shares and Anchor II-B Shares are collectively subject to an aggregate commitment capacity of $1.5 billion cumulatively.

The offering periods, minimum commitment size and/or capacity for Anchor II Shares may be waived, extended or otherwise modified from time to time or at any time in the sole discretion of the Company or the Operating Manager.

We expect that the Company will, in its sole discretion, conduct a quarterly share repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last business day of the calendar quarter prior to the commencement of a share repurchase; provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law.

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Until the 2<sup>nd</sup> anniversary of the Launch Date, the Anchor II Shares requested to be repurchased shall be subject to an Early Repurchase Fee of 5.0% of the NAV of the Anchor II Shares repurchased.

Holders of Anchor II Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*Anchor II-B Shares* 

The Company offers the Anchor II-B Shares in two separate series: Series I and Series II. Each Series is a separate series under Delaware law and not a separate legal entity. Series I has elected to be treated as a corporation for U.S. tax purposes and Series II has elected to be treated as a partnership for U.S. tax purposes. Anchor II-B Shares have equal rights and privileges with other classes of Investor Shares. Anchor II-B Shares have equal rights and privileges with other classes of Investor Shares.

The minimum initial purchase amount for U.S. investors is $10,000 for the Anchor II-B Shares. The minimum initial purchase amount for non-U.S. investors is $1,000,000 for the Anchor II-B Shares. The minimum subsequent purchase amount is $1,000 for Anchor II-B Shares, except for additional purchases pursuant to the DRIP, which are not subject to a minimum purchase amount. The minimum purchase amount for each type of Shares can be modified or waived in the sole discretion of the Company or the Dealer Manager, including for certain financial firms that submit orders on behalf of their customers, our officers and directors and certain employees of PIMCO, including its affiliates, vehicles controlled by such employees and their extended family members. The Company and the Dealer Manager each reserves the right to designate and re-designate the status of financial intermediaries in its sole discretion.

So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee monthly in arrears in an amount equal to 0.75% per annum of the month-end NAV attributable to the Anchor II-B Shares; provided that the Management Fee is ****reduced by any applicable Special Fees; provided, however, that the Management Fee is not ****reduced for any Other Fees. In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares.

The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, instead be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to ****be entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to, with respect to the Anchor II-B Shares: (i) first, if the Total Return with respect to the Anchor II-B Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount, 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 7.50% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause; and (ii) second, to the extent there are remaining Excess Profits, 7.50% of such remaining Excess Profits.

The Dealer Manager has waived the distribution and servicing fee effective from October 1, 2025 until such date as determined in its sole discretion. In addition, notwithstanding the ongoing waiver, on March 4, 2026, the Company and the Dealer Manager agreed to an increase in the distribution and servicing fees for Anchor II-B Shares and Standard B Shares from 0.75% to 0.85% per annum of the outstanding Anchor II-B Shares and Standard B Shares.

The minimum commitment size for Anchor Share distribution partners is $10 million for the Anchor II-B Shares. Anchor II Shares and Anchor II-B Shares are collectively subject to an aggregate commitment capacity of $1.5 billion cumulatively.

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The offering periods, minimum commitment size and/or capacity for Anchor II-B Shares may be waived, extended or otherwise modified from time to time or at any time in the sole discretion of the Company or the Operating Manager.

We expect that the Company will, in its sole discretion, conduct a quarterly share repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last business day of the calendar quarter prior to the commencement of a share repurchase; provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law.

Until the 2<sup>nd</sup> anniversary of the Launch Date, the Anchor II-B Shares requested to be repurchased shall be subject to an Early Repurchase Fee of 5.0% of the NAV of the Anchor II-B Shares repurchased.

Holders of Anchor II-B Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*Anchor III Shares* 

The Company offers the Anchor III Shares in one series: Series II. Series II is a series of the Company under Delaware law and not a separate legal entity. Series II has elected to be treated as a partnership for U.S. tax purposes. Anchor III Shares have equal rights and privileges with other classes of Investor Shares.

The minimum initial purchase amount for U.S. investors is $10,000 for the Anchor III Shares. The minimum initial purchase amount for non-U.S. investors is $1,000,000 for the Anchor III Shares. The minimum subsequent purchase amount is $1,000 for Anchor III Shares, except for additional purchases pursuant to the DRIP, which are not subject to a minimum purchase amount. The minimum purchase amount for each type of Shares can be modified or waived in the sole discretion of the Company or the Dealer Manager, including for certain financial firms that submit orders on behalf of their customers, our officers and directors and certain employees of PIMCO, including its affiliates, vehicles controlled by such employees and their extended family members. The Company and the Dealer Manager each reserves the right to designate and re-designate the status of financial intermediaries in its sole discretion.

So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee monthly in arrears in an amount equal to 0.50% per annum of the month-end NAV attributable to the Anchor III Shares; provided that the Management Fee is ****reduced by any applicable Special Fees; provided, however, that the Management Fee is not ****reduced for any Other Fees. In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares.

For the Anchor III Shares, the Operating Manager has agreed to waive 100% of the Management Fee for one year following the Launch Date.

The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, instead be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to be entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to, with respect to the Anchor III Shares: (i) first, if the Total Return with respect to the Anchor III Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount, 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 5.0% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause; and second, to the extent there are remaining Excess Profits, 5.0% of such remaining Excess Profits.

The Dealer Manager receives a Dealer Manager Fee of 3.5% of the transaction price of the Anchor III Shares.

------

The minimum commitment size for Anchor Share distribution partners is $100 million for the Anchor III Shares. The Anchor III Shares have an aggregate commitment capacity of $500 million. After the aggregate commitment capacity has been exhausted, determined on a first-come, first-served basis based on the time-stamp of when the Company receives the completed Indication of Interest, the Anchor III Shares will no longer be available for subscription.

Of the $500 million aggregate commitment capacity, $50 million is available to only RIA Advisory Board members, in which case there is $10 million minimum commitment amount for the applicable shareholders. The $50 million of the RIA reserved capacity is available on a first-come, first-serve basis, and once it is fully subscribed, future purchases can be made in Anchor III Shares, until the aggregate commitment capacity of the Anchor III Shares has been exhausted. The offering periods, minimum commitment size and/or capacity for Anchor III Shares may be waived, extended or otherwise modified from time to time or at any time in the sole discretion of the Company or the Operating Manager.

We expect that the Company will, in its sole discretion, conduct a quarterly share repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last business day of the calendar quarter prior to the commencement of a share repurchase; provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law.

Until the 2<sup>nd</sup> anniversary of the Launch Date, the Anchor III Shares requested to be repurchased shall be subject to an Early Repurchase Fee of 5.0% of the NAV of the Anchor III Shares repurchased.

Holders of Anchor III Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*Standard A Shares* 

The Company offers the Standard A Shares in two separate series: Series I and Series II. Each Series is a separate series under Delaware law and not a separate legal entity. Series I has elected to be treated as a corporation for U.S. tax purposes and Series II has elected to be treated as a partnership for U.S. tax purposes. Standard A Shares have equal rights and privileges with other types of Investor Shares.

The minimum initial purchase amount for U.S. investors is $10,000 for the Standard A Shares. The minimum initial purchase amount for non-U.S. investors is $1,000,000 for the Standard A Shares. The minimum subsequent purchase amount is $1,000 for Standard A Shares, except for additional purchases pursuant to the DRIP, which are not subject to a minimum purchase amount. The minimum purchase amount for each type of Shares can be modified or waived in the sole discretion of the Company or the Dealer Manager, including for certain financial firms that submit orders on behalf of their customers, our officers and directors and certain employees of PIMCO, including its affiliates, vehicles controlled by such employees and their extended family members. The Company and the Dealer Manager each reserves the right to designate and re-designate the status of financial intermediaries in its sole discretion.

So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee monthly in arrears in an amount equal to 1.25% per annum of the month-end NAV attributable to the Standard A Shares; provided that the Management Fee is ****reduced by any applicable Special Fees; provided, however, that the Management Fee is not ****reduced for any Other Fees. In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares.

The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, instead be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to be entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to, with respect to the Standard A Shares: (i) first, if the Total Return with respect to the Standard A Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount, 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause; and (ii) second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

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The Dealer Manager receives a Dealer Manager Fee of 3.5% of the transaction price of the Standard A Shares.

The minimum commitment size for Standard A Shares is $10,000. There is no aggregate commitment capacity for Standard A Shares.

We expect that the Company will, in its sole discretion, conduct a quarterly share repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last business day of the calendar quarter prior to the commencement of a share repurchase; provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law.

The Standard A Shares shall not be subject to an Early Repurchase Fee.

Holders of Standard A Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*Standard B Shares* 

The Company offers the Standard B Shares in two separate series: Series I and Series II. Each Series is a separate series under Delaware law and not a separate legal entity. Series I has elected to be treated as a corporation for U.S. tax purposes and Series II has elected to be treated as a partnership for U.S. tax purposes. Standard B Shares have equal rights and privileges with other types of Investor Shares.

The minimum initial purchase amount for U.S. investors is $10,000 for the Standard B Shares. The minimum initial purchase amount for non-U.S. investors is $1,000,000 for the Standard B Shares. The minimum subsequent purchase amount is $1,000 for Standard B Shares, except for additional purchases pursuant to the DRIP, which are not subject to a minimum purchase amount. The minimum purchase amount for each type of Shares can be modified or waived in the sole discretion of the Company or the Dealer Manager, including for certain financial firms that submit orders on behalf of their customers, our officers and directors and certain employees of PIMCO, including its affiliates, vehicles controlled by such employees and their extended family members. The Company and the Dealer Manager each reserves the right to designate and re-designate the status of financial intermediaries in its sole discretion.

So long as the Operating Agreement has not been terminated, we will continue to pay the Operating Manager a management fee monthly in arrears in an amount equal to 1.25% per annum of the month-end NAV attributable to the Standard B Shares; provided that the Management Fee is ****reduced by any applicable Special Fees; provided, however, that the Management Fee is not ****reduced for any Other Fees. In calculating the Management Fee, the Company uses its NAV before giving effect to accruals for the Management Fee, the Performance Fee, combined annual distribution fees and shareholder servicing fees or distributions payable on its Shares.

The Operating Manager or an affiliate may rebate, waive or reduce the Management Fee charged to certain Shareholders at the sole discretion of the Operating Manager or such affiliate. Any such rebate, waiver or reduction may be affected either by way of purchase of additional Shares by the Operating Manager or such affiliate for the Shareholder or by way of rebate to the relevant Shareholder's account. The Management Fee may alternatively, in the discretion of the Operating Manager, instead be paid in whole or in part by the Company's subsidiaries, in which case it shall result in a change in the cash or retained earnings of such subsidiaries.

So long as the Operating Agreement has not been terminated, the Operating Manager will continue to ****be entitled to receive, promptly following the end of each Reference Period, Performance Fees equal to, with respect to the Standard B Shares: (i) first, if the Total Return with respect to the Standard B Shares for the applicable period exceeds the sum, with respect to such relevant type of Shares, of (i) the Hurdle Amount for that period and (ii) the Loss Carryforward Amount, 100% of such Excess Profits until the total amount allocated to the Operating Manager equals 12.5% of the sum of (x) the Hurdle Amount for that period and (y) any amount allocated to the Operating Manager with respect to such type of Shares pursuant to this clause; and (ii) second, to the extent there are remaining Excess Profits, 12.5% of such remaining Excess Profits.

The Dealer Manager has waived the distribution and servicing fee effective from October 1, 2025 until such date as determined in its sole discretion. In addition, notwithstanding the ongoing waiver, on March 4, 2026, the Company and the Dealer Manager agreed to an increase in the distribution and servicing fees for Anchor II-B Shares and Standard B Shares from 0.75% to 0.85% per annum of the outstanding Anchor II-B Shares and Standard B Shares. The Dealer Manager receives a Dealer Manager Fee of 3.5% of the transaction price of the Standard B Shares.

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The minimum commitment size for Standard B Shares is $10,000. There is no aggregate commitment capacity for Standard B Shares.

We expect that the Company will, in its sole discretion, conduct a quarterly share repurchase for up to 5.0% of the aggregate NAV (measured collectively across both Series) of our outstanding Shares at a price based on the NAV per Share as of the last business day of the calendar quarter prior to the commencement of a share repurchase; provided that the Company may further limit the number of Shares subject to the quarterly repurchases of the Shares in accordance with the LLC Agreement and applicable securities law.

The Standard B Shares shall not be subject to an Early Repurchase Fee.

Holders of Standard B Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*PIMCO Shares* 

*E Shares* 

E Shares have equal rights and privileges with Investor Shares. E Shares do not pay a sales load or Dealer Manager Fees and investors do not pay any servicing or distribution fees with respect to E Shares. E Shares are not subject to the Management Fee or the Performance Fee. E Shares are held only by PIMCO, its affiliates, its officers and employees, the directors, officers and employees of the Company and certain other investor's in the Operating Managers' sole discretion, and are not being offered to other investors.

Holders of E Shares are not entitled to vote on any matters relating to the Company, including the election of directors, and are not entitled to nominate, remove or participate in the appointment of directors of the Company.

*V Shares* 

V Shares have special rights and privileges, including entitling the holders thereof to the exclusive right to appoint and remove directors of the Company, increase or decrease the number of directors of the Company and fill any vacancies on the Board. V Shares do not have economic participation in the Company. V Shares are held only by PIMCO GP LXXXII, LLC and/or its affiliates and are not being offered to other investors. V Shares may be transferred to a PIMCO affiliate or PIMCO Client. If a PIMCO affiliate or PIMCO Client becomes the holder of a majority of the V Shares, that entity would have majority control over the Company, including the right to vote for the appointment of the Company's directors.

V Shares do not pay a sales load or Dealer Manager Fees and investors do not pay any servicing or distribution fees with respect to V Shares. V Shares are not subject to the Management Fee or the Performance Fee.

***Rights Upon Liquidation***

Upon the dissolution of a Series or the Company as a whole, as applicable, after paying or making reasonable provision for the payment of the Series' or the Company's creditors, as applicable, for all claims and obligations in accordance with the LLC Act, the remaining assets of the Series or the Company as a whole, as applicable, shall be distributed among the holders of Shares of the applicable Series or of the Company generally pro rata in proportion to the number of Shares held by such holder (subject to the rights of any holders of Shares specified in the LLC Agreement, a series agreement or in any class designation), which distribution within a Series will be made consistent with any preferences which exist within such Series.

***Authorized Shares***

Each of our Shares represents a limited liability company interest in the Company associated with the applicable Series. Only PIMCO, its affiliates, subsidiaries, officers and employees, officers, directors and employees of the Company, certain PIMCO Clients and/or certain other investors in the Operating Manager's sole discretion are expected to hold PIMCO Shares.

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***Issuance of Additional Securities***

Our LLC Agreement authorizes the Board, without the consent of any other person, to create additional classes of Shares, including Investor Shares and PIMCO Shares, of any Series, having such terms, rights, designations, preferences, powers and duties (which rights or powers may be senior to existing types of Shares), as the Board shall determine. Our LLC Agreement also authorizes the Board, without the consent of any other person, to issue additional Shares of any Series of any class for the consideration and on the terms and conditions established by the Board.

***Transfer of Our Shares***

Shareholders may resign as a Shareholder of PIMCO Asset-Based Lending Company LLC associated with any Series by selling, transferring or assigning their Shares of such Series or having all of their Shares of such Series repurchased or redeemed in accordance with our Repurchase Plan, our LLC Agreement and any applicable securities laws. Shareholders may generally transfer all or a portion of their Shares except to impermissible types of transferees or by transfers that would adversely affect us, including transfers that would violate the ownership restrictions imposed in our LLC Agreement.

***Formation and Duration***

The Company was formed on March 11, 2025, as a Delaware limited liability company. On March 11, 2025, the Company established two registered series of limited liability company interests, PIMCO Asset-Based Lending Company LLC—Series I and PIMCO Asset-Based Lending Company LLC—Series II. The Company will remain in existence until its certificate of formation has been cancelled in the manner required by the LLC Act following the Company's dissolution and the completion of the winding up of the Company in accordance with our LLC Agreement and Delaware law. The LLC Agreement provides that the Company will be dissolved upon (a) the adoption of a resolution by the Board approving the dissolution of the Company and the approval of such action by Members holding a majority of the outstanding V Shares, (b) the operations of the Company ceasing to constitute legal activities under the LLC Act or any other applicable law (as determined by the Board), (c) at any time there are no members of the Company unless the Company is continued without dissolution in accordance with the LLC Act or (d) the entry of a decree of judicial dissolution of the Company under Section 18-802 of the LLC Act.

Each of Series I and Series II were formed on March 11, 2025, as a registered series of the Company. Each of Series I and Series II will remain in existence until its certificate of registered series has been cancelled in the manner required by the LLC Act following Series I's or Series II's, as applicable, dissolution and the completion of the winding up of such Series in accordance with our LLC Agreement, the applicable series agreement and Delaware law. The LLC Agreement and the applicable series agreement provides that Series I or Series II will be dissolved upon (a) the adoption of a resolution by the Board approving the dissolution of Series I or Series II, as applicable, and the approval of such action by Members holding a majority of the outstanding V Shares, (b) the operations of Series I or Series II, as applicable, ceasing to constitute legal activities under the LLC Act or any other applicable law (as determined by the Board), (c) the entry of a decree of judicial dissolution of a Series under Section 18-218(c)(11) of the LLC Act, or (d) the dissolution of the Company.

***Limited Liability of our Shareholders and Members; Indemnification***

Shareholders of the Company have no personal liability for any of the Company's obligations or liabilities solely by reason of being a member of the Company generally or being associated with any Series. Shareholders and members associated with a Series are only liable, in their capacity as a holder of an interest in the Company with respect to the applicable Series or a member of the Company generally or associated with a Series, respectively, to the extent of their capital contribution and pro rata share of any of our undistributed profits. Delaware law provides that, for a period of three years from the date on which any distribution is made to the Shareholders (or later, if an action to recover the distribution is commenced prior to the expiration of such three-year period), Shareholders may be liable to us to return the distribution if both of the following are true:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the distribution was made in violation of the LLC Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Shareholder knew at the time they received the distribution that it was made in violation of the LLC Act.

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As further explained in the LLC Agreement, and to the fullest extent permitted by law, the Company will indemnify and hold harmless members of the Board, PIMCO, holders of the V Shares, the members of the Acquisition Committee, their respective affiliates, directors, officers, representatives, agents, shareholders, members, managers, partners and employees, and any other person who serves at the request of PIMCO or its affiliates as a director, officer, agent, member, manager, partner, shareholder, trustee or employee of the Company, Series I or Series II or any other person (each such person being an "Indemnified Party") from and against any and all claims, liabilities, damages, losses, costs and expenses of any kind, including legal fees and amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and expenses of investigating or defending against any claim or alleged claim, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnified Party and arise out of or in connection with the business of the Company or the performance by the Indemnified Party of any of its responsibilities under the LLC Agreement, so long as the Indemnified Party's act or omission does not constitute actual fraud, willful misconduct, gross negligence, bad faith, a willful material and adverse breach of the LLC Agreement or applicable law. Thus, one or more of the foregoing persons could be indemnified for its negligent acts if it met the requirements set forth above. To the extent these provisions purport to include indemnification for liabilities arising under the Securities Act, in the opinion of the SEC such indemnification is contrary to public policy and therefore unenforceable.

***Conflicts of Interest***

Conflicts of interest exist and may arise in the future as a result of the relationships among PIMCO, the Operating Manager or any of their respective affiliates, on the one hand, and the Company generally, a Series, or any of the Shareholders, on the other hand. Whenever a potential conflict arises among PIMCO, the Operating Manager or any of their respective affiliates, on the one hand, and the Company generally, a Series, or any of the Shareholders, on the other hand, the Board or the Operating Manager may, but shall not be required to, resolve that conflict by seeking approval from a committee of our independent directors (which is our Audit Committee). Our LLC Agreement contains provisions that reduce or eliminate certain of the duties of the Board, including fiduciary duties, to the Company, the Series, and our Shareholders. Our LLC Agreement also restricts the remedies available to Shareholders and Members for actions taken that without those limitations might constitute breaches of duty, including fiduciary duties.

Under our LLC Agreement, the Board or the Operating Manager will not be in breach of its obligations under the LLC Agreement or its duties to us or our Shareholders if the resolution of the conflict of interest or the course of action in respect of the conflict of interest is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approved by a committee of our independent directors, which is the Audit Committee, although the Board or the
Operating Manager is not obligated to seek such approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on terms which are, in the aggregate, no less favorable to the Company generally or a Series, as applicable, than
those generally being provided to or available from unrelated third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair and reasonable to the Company generally or a Series, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• approved by the vote of Shareholders owning a majority of the outstanding Investor Shares, excluding any Investor
Shares owned by PIMCO or any of its affiliates, although the Board or the Operating Manager is not obligated to seek such approval.

The Board or the Operating Manager may, but is not required to, seek the approval of such resolution from the Audit Committee, any other committee of our independent directors or our Shareholders. If the Board or the Operating Manager does not seek approval from the Audit Committee, any other committee of our independent directors or our Shareholders and the Board or the Operating Manager, as applicable, determines that the resolution or course of action taken with respect to the conflict of interest satisfies either of the standards set forth in the second and third bullet points above, then such determination shall be deemed valid and binding on all persons, and any resolution or course of action so approved shall not constitute a breach of the LLC Agreement or of any fiduciary or other duty existing at law or in equity, except in the case of a final, non-appealable judicial determination of actual fraud, willful misconduct, or bad faith by the Board or the Operating Manager, as applicable. Unless the resolution of a conflict is specifically provided for in our LLC Agreement, notwithstanding any duty existing at law or in equity, the Board, the Operating Manager or a committee of the Board consisting of independent directors, which is the Audit Committee, may consider any factors they determine in their sole discretion to consider when resolving a conflict of interest. Our LLC Agreement provides that the Board or the Operating Manager will be conclusively deemed to be

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acting in good faith if the Board or the Operating Manager, as applicable, reasonably believes that the determination made or not made is in or not adverse to the best interests of the Company generally or the applicable Series, or, with respect to resolutions of conflicts of interest pursuant to the second or third bullet points above, if the Board or the Operating Manager reasonably believes that the action or inaction meets the standard set forth therein.

***Fiduciary Duties***

The Board is accountable to Shareholders, and the fiduciary duties owed to the Shareholders by the Board are prescribed by law and the LLC Agreement. The LLC Act provides that Delaware limited liability companies may in their limited liability company agreements expand, restrict or eliminate the duties, including fiduciary duties, otherwise owed by our directors, managers, controlling members, their affiliates and other persons to members, the limited liability company and other persons bound by the LLC Agreement.

The LLC Agreement contains various provisions modifying, restricting and eliminating the duties, including fiduciary duties, that might otherwise be owed by our directors, managers, controlling members and their affiliates. The Company has adopted these modifications to allow PIMCO, the Operating Manager and their respective affiliates to engage in transactions with us that would otherwise be prohibited by state-law fiduciary duty standards or subjected to enhanced scrutiny and to take into account the interests of other parties in addition to our interests when resolving conflicts of interest. Without these modifications, the ability of the Board and Audit Committee to make decisions involving conflicts of interest could be restricted. These modifications may be detrimental to the Shareholders because they restrict the remedies available to the Shareholders for actions that without those limitations might constitute breaches of duty, including a fiduciary duty, as described below, and they permit the Board and the Audit Committee to take into account the interests of third parties in addition to our interests when resolving conflicts of interest.

***State Law Fiduciary Duty Standards***

Fiduciary duties are generally considered to include an obligation to act in good faith and with due care and loyalty. In the absence of a provision in a limited liability company agreement providing otherwise, the duty of care would generally require a board of directors of a Delaware limited liability company to make decisions in a deliberate and fully informed manner after taking into consideration all material information reasonably available. In the absence of a provision in a limited liability company agreement providing otherwise, the duty of loyalty would generally require a board of directors of a Delaware limited liability company to take any action or omit to take action on a disinterested basis, in good faith, with an honest belief that it is in the best interests of the limited liability company.

***LLC Agreement Modified Standards***

Our LLC Agreement contains provisions that modify or eliminate duties of or consent to conduct by the Board, the Operating Manager and its affiliates that might otherwise raise issues about compliance with fiduciary duties or applicable law.

In addition to the other more specific provisions limiting the obligations of the Board, our LLC Agreement further provides that none of the Indemnified Parties will be liable to the Company generally, the Series, the Shareholders or any other person bound by the LLC Agreement for any losses due to any act or omission by any Indemnified Party in connection with the conduct of the business of the Company generally or the Series unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that such act or omission constitutes actual fraud, willful misconduct, gross negligence, bad faith, or a willful material and adverse breach of the LLC Agreement or applicable law.

***Special Provisions Regarding Affiliated Transactions***

Our LLC Agreement generally provides that affiliated transactions and resolutions of conflicts of interest not involving a vote of Shareholders and that are not approved by a committee of our independent directors may also be permitted and deemed approved by all Shareholders and not constitute a breach of duty if the Board determines that the course of action is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• on terms no less favorable to the Company generally or a Series, as applicable, than those generally being
provided to or available from unrelated third parties; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fair and reasonable to the Company generally or a Series, as applicable.

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If the Board or the Operating Manager does not seek approval from a committee of our independent directors or our Shareholders and the Board or the Operating Manager, as applicable, determines that the resolution or course of action taken with respect to the conflict of interest satisfies either of the standards set forth in the second and third bullet points above under "*—Conflicts of Interest*," such determination shall be deemed valid and binding on all persons, and any resolution or course of action so approved shall not constitute a breach of the LLC Agreement or of any fiduciary or other duty existing at law or in equity, except in the case of a final, non-appealable judicial determination of actual fraud, willful misconduct, or bad faith by the Board or the Operating Manager, as applicable. These standards reduce the obligations to which our directors or the Operating Manager would otherwise be held.

***Exculpation and Indemnification***

To the fullest extent permitted by applicable law, none of the Indemnified Parties will be liable to the Company generally, the Series or any Shareholders for (i) any losses due to any act or omission by any Indemnified Party in connection with the conduct of the business of the Company generally or the Series unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in question, such Indemnified Party's act or omission constitutes actual fraud, willful misconduct, gross negligence, bad faith, or a willful material and adverse breach of the LLC Agreement or applicable law, (ii) any losses due to any action or omission by any other person, (iii) any losses due to any mistake, action, inaction, negligence, dishonesty, actual fraud or bad faith of any broker, placement agent or other agent as provided in the LLC Agreement or (iv) any change in U.S. federal, state or local or non-U.S. income tax laws, or in interpretations thereof, as they apply to the Company generally, the Series or the Shareholders, whether the change occurs through legislative, judicial or administrative action.

To the fullest extent permitted by applicable law, except in the case of a final and non-appealable judgment entered by a court of competent jurisdiction determining that, in respect of the matter in question, such Indemnified Party's act or omission constitutes actual fraud, willful misconduct, gross negligence, bad faith, or a willful material and adverse breach of the LLC Agreement or applicable law, the Company generally or the applicable Series will indemnify and hold harmless each Indemnified Party from and against any and all claims, liabilities, damages, losses, costs and expenses of any kind, including legal fees and amounts paid in satisfaction of judgments, in compromises and settlements, as fines and penalties and legal or other costs and expenses of investigating or defending against any claim or alleged claim, of any nature whatsoever, known or unknown, liquidated or unliquidated, that are incurred by any Indemnified Party and arise out of or in connection with the business of the Company generally, the business of a Series or the performance by the Indemnified Party of any of its responsibilities under the LLC Agreement; *provided*, that such claims, liabilities, damages, losses, costs or expenses did not arise solely out of a dispute between or among the officers, directors, employees or partners of PIMCO or its affiliates.

***Mandatory Sales to the Company***

Under the Company's LLC Agreement, the Company or a Series may repurchase all or any portion of the Shares of a Shareholder without consent or other action by the Shareholder or other person if the Board determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Shares have been transferred in violation of the LLC Agreement, or have vested in any person by operation of
law as a result of the disability, death, divorce, dissolution, termination, bankruptcy, insolvency or adjudicated incompetence of the Shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any transferee does not meet any investor eligibility requirements established by the Company or the applicable
Series from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ownership of Shares by a Shareholder or other person is likely to cause the Company generally or a Series to be
in violation of, or require registration of the Shares under, or subject the Company generally or a Series to additional registration or regulation under, the securities, commodities or other laws of the United States or any other relevant
jurisdiction, including without limitation the Investment Company Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continued ownership of the Shares by a Shareholder may be harmful or injurious to the business or reputation of
the Company generally, a Series, the Operating Manager, PIMCO or any of their affiliates, or may subject the Company generally, a Series or any Shareholder to an undue risk of adverse tax or other fiscal or regulatory consequences;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any Shareholder fails to maintain a minimum balance of $500 of its Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any of the representations and warranties made by a Shareholder or other person in connection with the
acquisition of Shares was not true when made or has ceased to be true;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• with respect to a Shareholder subject to special laws or regulations, the Shareholder is likely to be subject to
additional regulatory or compliance requirements under these special laws or regulations by virtue of continuing to hold any Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• it would be in the interest of the Company generally or a Series, as determined by the Board, for the Company or
such Series, as applicable, to repurchase the Shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continued ownership of any Shares by a Shareholder of may cause all or any portion of the assets of the Company
generally or a Series to be characterized as plan assets of such Shareholder for purposes of Title I of ERISA, Section 4975 of the Code or any applicable Similar Law.

***Third-Party Tender Offers***

Our LLC Agreement contains provisions that apply to tender offers by third parties including compliance with the applicable laws for such tender offers in addition to certain obligations to the Company regarding notice and reimbursement of Company expenses.

***Submission to Jurisdiction***

***Jury Trial Waiver***

The LLC Agreement provides that our Shareholders waive and release their respective rights to a trial by jury in any action, suit or proceeding arising out of or related to LLC Agreement. Such waiver applies to purchasers in secondary transactions. Such waiver of a jury trial does not, however, serve as a waiver by any parties of any claim or cause of action arising out of or relating to the U.S. federal securities laws. In addition, investors cannot waive the Company's compliance with the U.S. federal securities laws and the rules and regulations promulgated thereunder.

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**Distributions** 

Beginning February 2026, we started paying distributions to our Shareholders. We intend to pay regular monthly distributions to Shareholders of record. We intend to declare, accrue and pay distributions monthly. However, there can be no guarantee that we will pay monthly distributions consistently and at a specific rate, or at all. While we expect to declare and pay regular monthly distributions, and accordingly, we are subject to Delaware distribution rules with respect to limited liability companies, we do not intend to adopt a written distribution policy. The ultimate decision to declare distributions will be a case-by-case determination by the Board. If the Company decides to adopt a distribution policy, it will provide appropriate disclosure in advance. Due to tax considerations and other factors, the amount of the distributions ultimately received by each Shareholder may differ. The record date for distributions will be the last calendar day of the month immediately preceding the distribution.

Cash distributions to Shareholders will be automatically reinvested under the Company's distribution reinvestment plan (the "DRIP") in additional whole and fractional Shares attributable to the type of Shares that a Shareholder owns unless and until an election is made on behalf of such participating Shareholder to withdraw from the DRIP and receive distributions in cash. The number of Shares to be received when distributions are reinvested will be determined by dividing the amount of the distribution, net of any applicable withholding taxes, by the applicable NAV per share as of the end of the prior month. Shares will be distributed in proportion to the type of Shares held by the Shareholder under the DRIP. There will be no upfront commissions charged on Shares issued to a Shareholder under the DRIP.

## Exhibit 4.2

**Exhibit 4.2**![LOGO](g112132g20a40.jpg)

PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors The undersigned (the "Subscriber") hereby tenders this Subscription Agreement and applies for the purchase of the dollar amount of limited liability company interests (the "Shares") in Series [I/II] of PIMCO Asset-Based Lending Company LLC ("PALCO") set forth below. PALCO is managed by its operating manager, Pacific Investment Management Company LLC (the "Manager" and together with its affiliates and subsidiaries, "PIMCO"). Please see the confidential private placement memorandum, as may be amended and/or supplemented from time to time ("PPM"), for complete details regarding the offering by PALCO. This Subscription Agreement must be used only for the purpose of purchasing the Shares in Series [I/II] of PALCO. If you wish to purchase shares in Series [I/II] of PALCO, please complete a subscription agreement for Series [I/II] of PALCO. (1) YOUR INVESTMENT A. Investment Investment Amount $($10,000 minimum initial investment) For your subscription request to be accepted for any given month, the full investment amount above must be received by PALCO's custodian or its designee no later than 4 PM EST five (5) business days prior to the first calendar day of the applicable month (unless waived). B. Investment Method Please identify the bank or other financial institution from which the Subscriber's funds will be wired. Name of U.S. financial institution: Address: Routing Number (ABA): Beneficiary Number: Beneficiary Account Name: Account Number: Account Name: Account Representative: Telephone: Intermediary Bank Name Intermediary Bank SWIFT Code: Beneficiary Bank Name: Beneficiary Bank SWIFT Code: Beneficiary Bank Account Number: Remittance Remarks: Repurchase proceeds will only be remitted to the financial institution from which the investment amounts originated, unless PALCO consents otherwise in its sole discretion. In the event that you elect to opt out of the Distribution Reinvestment Plan, any distributions will be remitted to the financial institution from which the investment amounts originated, unless PALCO consents otherwise in its sole discretion. Repurchase requests may be submitted to PALCO's administrator (the "Administrator"), provided that the signed repurchase request is received by the Administrator prior to the end of the repurchase window in accordance with the PPM. If requested, the Administrator will undertake to promptly confirm in writing all repurchase requests which are received in good order. Subscribers failing to receive such requested written confirmation from the Administrator should contact the Administrator to obtain the same. C. Share Selection (required) Series [I/II] – Anchor I Shares [Series II – Anchor I-B Shares] Series [I/II] – Anchor II Shares Series [I/II] – Anchor II-B Shares [Series II – Anchor III Shares] Series [I/II] – Standard A Shares Series [I/II] – Standard B Shares Series [I/II] – E Shares (2) OWNERSHIP TYPE (Select Only One) Entity Name – Retirement Plan / Trust / Corporation / Partnership / Other Trustee(s) and/or authorized signatory(s) information MUST be provided in Sections 3.A and 3.B Entity Name Tax ID Number Date of Trust or Formation Exemptions (See Form W-9 instructions at www.irs.gov) Entity Type (Select one. Required) Retirement Plan Trust S-Corp C-Corp LLC Partnership Other If you are applying for the purchase of Shares in Series [I/II] and you (i) checked "Trust" above, (ii) checked "LLC" above and are treated as a partnership for U.S. federal income tax purposes or (iii) checked "Other" above and are an estate, please check this box if you have any foreign partners, owners, or beneficiaries. Jurisdiction (if Non-U.S.) Exempt payee code (if any) Exemption from FATCA reporting code (if any) (Attach completed applicable Form W-8) (3) INVESTOR INFORMATION A. Investor Name (Investor / Trustee / Executor / Authorized Signatory Information) (Residential street address MUST be provided. See Section 4 if mailing address is different than residential street address.) Subscriber Name (if an entity, state the entity name): Contact Person: Mailing Address: Page 1 of 21

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![LOGO](g112132g20a41.jpg)

PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement US Investors (3) INVESTOR INFORMATION (Cont'd) Telephone: Facsimile: Email: Year of Organization (entities): Date of Birth (individuals): Social Security Number / Tax ID: The subscriber will hold the investment in PALCO: as principal as agent, nominee, or on behalf of another member Residence/Principal Place of Business (if different from the mailing address indicated above): Address: Registered Address (if different from the mailing address indicated above): Address: Address to which duplicate correspondence should be sent (if applicable): Address: Contact Person: Telephone: Facsimile: E-mail: Relationship to the Subscriber: If you are an "Institutional Account" as defined in the Financial Industry Regulatory Authority Rule 4512(c), please complete and sign the Institutional Suitability Certificate (attached hereto as Appendix B).1 If you are a PIMCO or PALCO employee, certain non-employee personnel, officer, director, or an Immediate Family Member thereof, please complete the Pre-Clearance Questions (attached hereto as Appendix E). B. Co-Investor Name (Co-Investor / Co-Trustee / Co-Executor / Co-Authorized Signatory Information, if applicable.) (Residential street address MUST be provided. See Section 4 if mailing address is different than residential street address.) Subscriber Name (if an entity, state the entity name): Contact Person: Mailing Address: Telephone: Facsimile: Email: Year of Organization (entities): Date of Birth (individuals): Social Security Number / Tax ID: The subscriber will hold the investment in PALCO: ☐ as principal ☐ as agent, nominee, or on behalf of another member Residence/Principal Place of Business (if different from the mailing address indicated above): Address: Registered Address (if different from the mailing address indicated above): Address: Address to which duplicate correspondence should be sent (if applicable): Address: 1 An "Institutional Account" means the account of: (a) a bank, savings and loan association, insurance company or registered investment company; (b) an investment adviser registered either with the U.S. Securities and Exchange Commission under Section 203 of the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"), or with a state securities commission (or any agency or office performing like functions); or (c) any other person (whether an individual / natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million as of the date the subscriber executes this Subscription Agreement (whether such assets are invested for such person's own account or under management for the account of others). 2 "Immediate Family Member" means (1) an employee's spouse; (2) any of the following persons sharing the same household with the employee (which does not include temporary house guests): a person's child, stepchild, grandchild, parent, stepparent, grandparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-inlaw, sister-in-law, legal guardian, adoptive relative, or domestic partner; (3) any person sharing the same household with the employee (which does not include temporary house guests) that holds an account in which the employee is a joint owner or listed as a beneficiary; or (4) any person sharing the same household with the employee in which the employee contributes to the maintenance of the household and material financial support of such person. Page 2 of 21

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![LOGO](g112132g20a42.jpg)

PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement US Investors (3) INVESTOR INFORMATION (Cont'd) Contact Person: Telephone: Facsimile: E-mail: Relationship to the Subscriber: C. Financial Intermediary Name (Street address MUST be provided.) Entity Name: Mailing Address: (4) CONTACT INFORMATION (If different than provided in Section 3.A) Address: Telephone: Facsimile: E-mail: (5) INTERESTED PARTY INFORMATION (For mailed statements) FIRST NAME (MI) LAST NAME DAYTIME PHONE NUMBER RESIDENTIAL STREET ADDRESS CITY STATE ZIP (6) SELECT HOW YOU WANT TO RECEIVE YOUR DISTRIBUTIONS (Select only one) Please read entire section carefully. A. You are automatically enrolled in our Distribution Reinvestment Plan. If you do NOT wish to be enrolled in our Distribution Reinvestment Plan, and you instead elect to receive cash distributions, check this box and complete the information in Section 6.B : ☐ B. Complete the section below by selecting one of the four methods to receive cash distributions ONLY if you are NOT participating in the Distribution Reinvestment Plan and you instead have elected above to receive cash distributions per Section 6.A above. For Custodial held accounts, if you elect cash distributions the funds must be sent to the Custodian. 1. ☐ Wire transfer per the information set forth in Section 1.B above. 2. ☐ Cash/Check Mailed to the address set forth above (Available for Non-Custodial Investors only.) 3. ☐ Cash/Check Mailed to Third Party/Custodian NAME / ENTITY NAME / FINANCIAL INSTITUTION MAILING ADDRESS CITY STATE ZIP ACCOUNT NUMBER (required) 4. ☐ Cash/Direct Deposit Attach a pre-printed voided check. (Non-Custodial Investors Only) I authorize PIMCO Asset-Based Lending Company LLC or its agent to deposit my distribution into my checking or savings account. This authority will remain in force until I notify PIMCO Asset-Based Lending Company LLC in writing to cancel it. In the event that PIMCO Asset-Based Lending Company LLC deposits funds erroneously into my account, PIMCO Asset-Based Lending Company LLC is authorized to debit my account for an amount not to exceed the amount of the erroneous deposit. FINANCIAL INSTITUTION NAME MAILING ADDRESS CITY STATE ZIP YOUR BANK'S ABA ROUTING NUMBER YOUR BANK ACCOUNT NUMBER (7) ELECTRONIC DELIVERY FORM (Optional) By providing the Subscriber's initial and email address in this Section (7) below, the Subscriber consents to the delivery by PALCO, the Manager and/or the Administrator to the Subscriber (or the Subscriber's designated agents) of statements related to the Subscriber's investment in PALCO, reports and other communications relating to PALCO and/or the Subscriber's investment in PALCO (including, without limitation, net asset value information, subscription and repurchase activity, annual, quarterly or other reports, any notice (or updates thereto) from time to time required to be provided under applicable privacy and data protection laws that may be enacted or amended from time to time, including the California Consumer Privacy Act (the "CCPA"), the Data Protection Act, 2017 of the Cayman Islands (the "Cayman DPA"), the General Data Protection Regulation 2016/679 (the "GDPR"), the UK Data Protection Act 2018 (the "UK DPA") and the "UK GDPR" (as defined in the UK DPA as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019, and together with the CCPA, Cayman DPA, GDPR and UK DPA, the "Data Protection Legislation"), and any updates of consumer privacy policies and procedures) in electronic form, such as email or a password-protected website maintained by PIMCO or a third party, in lieu of or in addition to the delivery of such information through mail or fax transmission, unless the Subscriber has made a request in writing to the contrary. Please note that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with without the knowledge of the sender or the intended recipient. None of PALCO, the Manager or the Administrator makes any warranties in relation to these matters. Please note that PALCO, the Manager and the Administrator reserve the right to intercept, monitor and retain email messages to and from their systems as permitted by applicable law. If you have any doubts about the authenticity of an email purportedly sent by PALCO, the Manager or the Administrator, you would be required to contact the purported sender immediately. If the Subscriber consents to the electronic delivery as described above, the Subscriber must notify PALCO in writing if the Subscriber's email address listed herein changes. The Subscriber agrees and acknowledges that none of PALCO, the Manager, the Administrator or their agents or affiliates will incur any liability for any misdirected or intercepted communications, including those sent by email or any other electronic means. Please initial to consent to electronic delivery EMAIL (If blank, the email provided in Section 4 or Section 3.A will be used.) Page 3 of 21

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![LOGO](g112132g20a43.jpg)

PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement US Investors (8) POWER OF ATTORNEY By executing this Subscription Agreement and subscribing for Shares, the Subscriber hereby irrevocably makes, constitutes, and appoints the Manager and PIMCO Asset-Based Lending Company LLC with full power of substitution, the true and lawful representatives and attorney-in-fact of, and in the name, place and stead of, such Subscriber with power from time to time to make, execute, sign, acknowledge, swear to verify, deliver, record, file and/or publish (a) the limited liability company agreement of PIMCO Asset-Based Lending Company LLC (as amended, restated, supplemented or otherwise modified from time to time, the "LLC Agreement") and any instrument, document or certificate necessary or appropriate thereto on behalf of such Subscriber; (b) any amendment, restatement or supplement to the LLC Agreement that complies with the provisions of the LLC Agreement; (c) the certificate of formation of PIMCO Asset-Based Lending Company LLC and any amendment thereof required because the LLC Agreement is amended, including, without limitation, an amendment to effectuate any change in the membership of PIMCO Asset-Based Lending Company LLC, the capital contributions of other investors of PIMCO Asset-Based Lending Company LLC, the name of PIMCO Asset-Based Lending Company LLC or the structure of PIMCO Asset-Based Lending Company LLC; and (d) all such other instruments, documents and certificates that, in the opinion of legal counsel to PIMCO Asset-Based Lending Company LLC, may from time to time be required by the laws of the United States, the State of Delaware, the Cayman Islands or any other jurisdiction in which PIMCO Asset-Based Lending Company LLC shall determine to do business, or any political subdivision or agency thereof, or that such legal counsel may deem necessary for PIMCO Asset-Based Lending Company LLC to implement and continue the valid and subsisting existence and business of PIMCO Asset-Based Lending Company LLC in its current form of organization or to effect a change of name of PIMCO Asset-Based Lending Company LLC or to effect the dissolution or winding up, as the case may be, or termination of PIMCO Asset-Based Lending Company LLC. The foregoing power of attorney (i) is intended to secure an interest in property, and the obligation of the Subscriber under this Subscription Agreement, is irrevocable and shall be deemed to be coupled with an interest sufficient in law to support an irrevocable power; (ii) shall not be affected by subsequent death, disability, dissolution, bankruptcy, insolvency or incapacity of the principal Subscriber; and (iii) shall be governed, construed and enforced in accordance with the laws of the State of Delaware. If required, the Subscriber shall execute and deliver to the Manager or PIMCO Asset-Based Lending Company LLC, within five business days after receipt of a request therefor, such further designations, powers of attorney or other instruments as PIMCO shall determine to be necessary for the purposes hereof consistent with the provisions of the LLC Agreement. To the fullest extent permitted by applicable law, the Subscriber hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of PIMCO Asset-Based Lending Company LLC, PIMCO, the Administrator or their affiliates taken in good faith under this power of attorney. Any attorney-in-fact appointed pursuant to this Section 8 may execute any document on behalf of any or all investors in PIMCO Asset-Based Lending Company LLC without the need to list all of the investors in PIMCO Asset-Based Lending Company LLC. The execution of this power of attorney is not intended to, and does not, revoke any prior powers of attorney. (9) ANTI-MONEY LAUNDERING The Subscriber acknowledges that, due to applicable anti-money laundering and anti-terrorist and proliferation finance and related legislation and regulations ("Applicable AML Laws"), PALCO, the Manager on PALCO's behalf, the Administrator, and/or any of their designees may require further identification information from the Subscriber and, as applicable, its Beneficial Owners3, control persons and/or anyone authorized to give instructions on the Subscriber's behalf, and may also require receipt of the information from the Subscriber's remitting financial institution before the Subscriber's Subscription Agreement can be processed. In addition, the PALCO, the Manager on PALCO's behalf, the Administrator and/or any of their designees may request such information or documentation as is necessary to verify (a) the identity of the Subscriber, its Beneficial Owners, control persons, and/or anyone authorized to give instructions on the Subscriber's behalf; and (b) the source of the Subscriber's wealth and subscription funds. In the event of delay or failure by the Subscriber to produce the requested information (or any additional information or documentation subsequently requested by PALCO, the Administrator, and/or their designees), PALCO or the Administrator may refuse to process a subscription or accept any monies from the Subscriber or process any redemption requests from or pay any distributions to the Subscriber until proper information has been provided. The Subscriber acknowledges and agrees that PALCO's Board of Directors (and each Director), PALCO, the Manager, the Administrator and each of their respective affiliates shall be held harmless and indemnified against any loss arising as a result of a failure to process a subscription or redemption request or pay any distributions if the Subscriber has not provided documentation or information requested or required by PALCO, the Manager on PALCO's behalf, and/or the Administrator to the satisfaction of PALCO, the Manager on PALCO's behalf, and/or the Administrator. The Subscriber also acknowledges and agrees that waiver of any secrecy or privacy rights to which it is otherwise entitled is a condition of PALCO's acceptance of the Subscriber's subscription, to the extent necessary in order for PALCO to satisfy its obligations under Applicable AML Laws or Applicable Sanctions Laws, as defined below. The Subscriber acknowledges and agrees that (i) PALCO is not required to accept the Subscriber's subscription or the subscription of any other person, (ii) all or a portion of the subscription payment of the Subscriber may therefore be returned at any time prior to the sale of shares, and (iii) the offering may be suspended or terminated at any time. The Subscriber acknowledges and agrees that PALCO generally prohibits any investment in PALCO by, on behalf of, or through the following persons, directly or indirectly (each, a "Prohibited Investor"): (a) A person or entity that is subject to economic or trade sanctions administered by the United States (including, but not limited to, the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC") or the U.S. State Department), the UK (including by HM Treasury), the European Union ("EU") and its member states, the United Nations Security Council ("UNSC"), or any other relevant sanctions authority (together with U.S., UK, EU, and UNSC laws, "Applicable Sanctions Laws," and persons or entities sanctioned under such laws, "Sanctioned Persons"); (b) Any entity owned or controlled by a Sanctioned Person; (c) A person or entity that is located, organized or ordinarily resident in a jurisdiction subject to comprehensive sanctions under Applicable Sanctions Laws (as of the time of this agreement, the Crimea, the so-called Luhansk People's Republic and so-called Donetsk People's Republic regions of Ukraine, the non-governmental controlled oblasts of Kherson and Zaporizhzhia, Cuba, Iran, North Korea and Syria) (a "Sanctioned Country"); (d) A person or entity with whom PALCO is otherwise prohibited from dealing under Applicable Sanctions Laws; (e) A Foreign Shell Bank (as defined herein). A "Foreign Shell Bank" means a Foreign Bank (as defined herein) without a physical presence in any country, but does not include a Regulated Affiliate (as defined herein). A "Foreign Bank" means an organization that (a) is organized under the laws of a country outside the United States; (b) engages in the business of banking; (c) is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal banking operations; (d) receives deposits to a substantial extent in the regular course of its business; and (e) has the power to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank. A "Regulated Affiliate" means a Foreign Shell Bank that (a) is an affiliate of a depository institution, credit union, or Foreign Bank that maintains a physical presence in the United States or a foreign country; and (b) is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or Foreign Bank; (f) A person or entity that has been designated by, or is resident in, or organized or chartered under the laws of, a jurisdiction that has been designated as a "primary money laundering concern" by the Secretary of the Treasury under Section 311 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 or Section 9714 of the Combatting Russian Money Laundering Act, unless waived by PALCO after conducting enhanced due diligence; (g) A person that appears on a list of known or suspected terrorists designated pursuant to the customer identification program regulations adopted under 31 U.S.C. §5318(l); or (h) A person or entity that has been convicted of or is under investigation for financial crimes, including activity that violates Applicable AML Laws, Applicable Sanctions Laws, or applicable anti-corruption or anti-bribery laws ("Applicable Anti-Corruption Laws"), unless waived by PALCO after conducting enhanced due diligence. The Subscriber represents and warrants that none of the Subscriber nor any person or entity controlling, controlled by, or, to the knowledge of the Subscriber, under common control with, such Subscriber, nor any Beneficial Owner or underlying investor of such Subscriber, is a Prohibited Investor. The Subscriber represents and warrants that none of the funds used by the Subscriber to fund its investment will be derived directly or indirectly from activity that violates Applicable Sanctions Laws or dealings with Sanctioned Persons or Sanctioned Countries. The Subscriber represents and warrants that none of the Subscriber, any Beneficial Owner, underlying investor, or any party acting on behalf of the Subscriber or any Beneficial Owner, has received, made, offered, or promised any unlawful payment or benefit in furtherance of its potential investment in PALCO. The Subscriber represents and warrants that, if the Subscriber is an entity, including a fund-of-funds, trust, pension plan, nominee, or any other entity that is not a natural person, the Subscriber: (a) has adopted policies and procedures designed to comply with Applicable AML Laws and, pursuant to those policies and procedures, it (i) has 3 "Beneficial Owner" shall have the meaning given it under Applicable AML Laws, and such term shall have such meaning when used in this Subscription Agreement in the context of anti-money laundering and sanctions representations, warranties, covenants, acknowledgments, or when otherwise required. Page 4 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement US Investors (9) ANTI-MONEY LAUNDERING (Cont'd) carried out thorough due diligence (and, as applicable, enhanced due diligence) as to, and has established the identities of, any Beneficial Owner of the Subscriber, (ii) holds the evidence of such identities, (iii) as required or appropriate, has identified the source of funds or source of wealth of any Beneficial Owner, (iv) will maintain all such evidence for the period required by applicable law (and in any event at least ten years from the date of the Subscriber's complete redemption from PALCO), (v) will make such information available to PALCO or any of its designees upon their reasonable request and (vi) monitors for, and reports suspicious activity of, such persons or entities, and complies with relevant transaction and/or currency reporting requirements as required by Applicable AML Laws; (b) will obtain from its underlying investors a waiver of such investors' secrecy and privacy rights as a condition of investment, to the extent necessary in order for the Subscriber and PALCO to satisfy their respective obligations under Applicable AML Laws, and the Subscriber will reject or terminate the investment of any underlying investor who refuses to provide, or attempts to revoke, such waiver; (c) has adopted and adhered to policies and procedures reasonably designed to comply with Applicable Sanctions Laws and Applicable Anti-Corruption Laws, and to identify underlying investors who might be Prohibited Investors; and (d) based on application of its policies and procedures designed to comply with Applicable AML Laws, Anti-Money Laundering Laws, Applicable Anti- Corruption Laws, and Applicable Sanctions Laws, Subscriber has no reason to believe that any underlying investor is a Prohibited Investor or is engaged in suspicious activity by, through or at PALCO. The Subscriber represents and warrants that the money that the Subscriber seeks to invest (a) is not derived from, or related to, money laundering, terrorism, illegal drug activity, or any other activity that is deemed criminal under U.S. or other applicable law; (b) will not cause PALCO, the Manager, the Administrator or any of their respective affiliates to be in violation of Applicable AML Laws, Applicable Sanctions Laws, or Applicable Anti-Corruption Laws; and (c) will not originate from, be routed through, or be transferred from or through an account maintained at a Foreign Shell Bank, an "offshore bank," or a bank organized or chartered under the laws of a Non-Cooperative Jurisdiction or Territory4. The Subscriber represents and warrants that it does not know, or have reason to suspect, that the proceeds of its investment will be used in any manner that would cause PALCO, the Manager, the Administrator or any of their respective affiliates to be in violation of Applicable AML Laws, Applicable Sanctions Laws, or Applicable Anti-Corruption Laws. The Subscriber represents and warrants that it will provide to PALCO, the Manager, and/or the Administrator such information and documentation as PALCO, the Administrator, the Manager or any of their affiliates may require to comply with Applicable AML Laws, Applicable Sanctions Laws, and/or Applicable Anti-Corruption Laws. The representations and warranties set forth in this Section 9 are ongoing and shall be deemed repeated at the time of each subscription and repurchase. The Subscriber agrees to notify PALCO and/or the Administrator immediately of any change in information affecting the representations and covenants in this Section 9. The Subscriber acknowledges that (a) if the Subscriber is, or PALCO, Manager or the Administrator reasonably believes that the Subscriber or any of its Beneficial Owners, underlying investors or control persons is, a Prohibited Investor, (b) the foregoing representations in this Section 9 are incorrect, (c) if otherwise required by applicable law or regulation related to money laundering, economic sanctions, and similar activities, or (d) if PALCO, the Manager and/or the Administrator deems it reasonably necessary for the commercial best interests of other investors in PALCO, the Manager and/or the Administrator may, in their sole discretion, undertake appropriate actions to ensure compliance with applicable law or regulations or commercial best interests of other investors, including but not limited to freezing, segregating or redeeming the Subscriber's subscription in PALCO. Freezing the Subscriber's subscription in PALCO may mean that the Subscriber's subscription cannot be redeemed. In the event that a redemption notice has been or is submitted in relation to frozen assets, either prior to or after assets are required by applicable law or regulations to be frozen, but the redemption has not yet completed, PALCO, the Manager and/or the Administrator may, in their sole discretion, disregard the redemption notice in question. PALCO, the Manager, and/or the Administrator shall be under no obligation to communicate with a Prohibited Investor in relation to the appropriate actions taken. In this event, the Subscriber shall have no claim against PALCO, the Manager, the Administrator, or any of their respective affiliates, for any form of damages that result from any of the aforementioned actions. The Subscriber represents and covenants that if it is or becomes, or any of its Beneficial Owners are or become, a Senior Foreign Political Figure5 or Politically Exposed Person6, it has provided or will provide notice of such status to PALCO, the Manager, and/or the Administrator and will provide any information requested by PALCO, the Manager, the Administrator, and/or their designees to conduct any enhanced due diligence as may be appropriate in PALCO's, the Manager's, and/or the Administrator's sole discretion. The Subscriber likewise represents and covenants that if it is investing on behalf of others, it will conduct or has conducted enhanced due diligence on underlying investors who are or become Senior Foreign Political Figures or Politically Exposed Persons to confirm that such investors' source of wealth or funds is not derived from corruption or other illegal activity. The Subscriber is advised that PALCO could be requested or required to disclose confidential information about the Subscriber and, if applicable, any of the Subscriber's Beneficial Owners, underlying investors, control persons and/or persons authorized to give instructions on the Subscriber's behalf, to governmental, regulatory or other authorities or to financial intermediaries if PALCO, Manager and/or the Administrator, in their sole discretion, determine that it is in their best interests in light of relevant laws or regulations concerning money laundering, economic sanctions, and similar activities. Notwithstanding any other provision of this Subscription Agreement to the contrary, PALCO, and the Manager, in its own name and on behalf of PALCO, shall be authorized, without the consent of any person or entity, including the undersigned, to take such action as it determines to be necessary or advisable to comply, or to cause PALCO to comply, with any anti-money laundering, economic sanctions, or anti-terrorist laws, rules, regulations, directives or special measures. Subscriber represents and warrants that it has read and completed "Appendix C: Information Regarding Applicability of Rule 506(d)" and "Appendix D: AML Subscriber Identification Questionnaire" herein and the information supplied is true and correct and may be relied upon by PALCO. Subscriber represents and warrants that neither investor nor (if investor is an entity) any shareholders, partners or other holders of equity or beneficial interests (including any person reasonably known to be controlling investor) is: a person or entity (a) whose name appears on the List of Specially Designated Nationals and Blocked Persons administered by the OFAC of the U.S. Department of Treasury or any similar list of sanctioned persons maintained by the United Nations, EU, or UK, as such lists may be amended from time to time; (b) who is incorporated, ordinarily resident, or located in a country or territory subject to comprehensive sanctions (at the time of this agreement the Crimea, the so-called Luhansk People's Republic and so-called Donetsk People's Republic regions of Ukraine, the non-governmental controlled oblasts of Kherson and Zaporizhzhia, Cuba, Iran, North Korea, and Syria); or (c) with whom dealings are restricted, prohibited, or sanctionable pursuant to applicable sanctions, including the sanctions programs administered by OFAC. Subscriber represents and warrants that (a) the amounts contributed by investor to PALCO were not and are not directly or indirectly derived from activities that may contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations; (b) no contribution by the you to PALCO will result in a violation by PALCO or the Manager of any U.S. federal or any state or non-U.S. laws and regulations, including anti-money laundering, economic sanctions, or anti-terrorist laws and regulations, and (c) none of the proceeds from investor's investment in PALCO will be used to finance any activities that contravene laws or regulations or in any other manner that would cause PALCO or the Manager to be in violation of laws or regulations. 4 "Non-Cooperative Jurisdiction or Territory" means any non-U.S. country or territory that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization concurs. 5 "Senior Foreign Political Figure" means (a) a current or former senior official in the executive, legislative, administrative, military or judicial branches of a non-U.S. government (whether elected or not), a current or former senior official of a major non-U.S. political party, or a current or former senior executive of a non-U.S. government-owned commercial enterprise, (b) a corporation, business, or other entity that has been formed by, or for the benefit of, any such individual, (c) an Immediate Family Member of any such individual, and (d) a person who is widely and publicly known (or is actually known) to be a Close Associate of such individual. For purposes of this definition, a "senior official" or "senior executive" means an individual with substantial authority over policy, operations, or the use of government-owned resources. "Close Associate" means, with respect to a Senior Foreign Political Figure or a Politically Exposed Person, a person who is widely and publicly known internationally (or actually known to the Subscriber) to maintain an unusually close relationship with the Senior Foreign Political Figure or Politically Exposed Person, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior Foreign Political Figure or Politically Exposed Person. For the purposes of this Part 9, "Immediate Family Member" means a spouse or a person considered to be the equivalent of a spouse, parent, sibling, children and their spouses or persons considered to be equivalent of a spouse, or a spouse's parents and siblings. 6 "Politically Exposed Person" means individuals who are or have been entrusted with prominent public functions in a foreign or domestic country, including heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations or international organizations, important political party officials, and family members or Close Associates of any of the foregoing. In addition, a Politically Exposed Person includes any corporation, business or other entity that has been formed by, or for the benefit of, a Politically Exposed Person, as well as Immediate Family Member (as defined in footnote 5)and Close Associates of Politically Exposed Persons. 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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors (10) GOVERNING LAW This Subscription Agreement will be governed by and construed in accordance with the laws of the State of Delaware (without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of Delaware). (11) ENTIRE AGREEMENT This Subscription Agreement, the LLC Agreement and the other agreements or documents referred to herein or in the LLC Agreement contain the entire agreement of the parties hereto or therein with respect to the subject matter hereof and thereof, and there are no representations, covenants or other agreements except as set forth herein or therein. (12) SUBSCRIBER SIGNATURES PIMCO Asset-Based Lending Company LLC is required by law to obtain, verify and record certain personal information from you or persons on your behalf in order to establish the account. Required information includes name, date of birth, permanent residential address and social security/ taxpayer identification number. We may also ask to see other identifying documents. If you do not provide the information, PIMCO Asset-Based Lending Company LLC may not be able to open your account. By signing this Subscription Agreement, you agree to provide this information and confirm that this information is true and correct. If we are unable to verify your identity, or that of another person(s) authorized to act on your behalf, or if we believe we have identified potentially criminal activity, we reserve the right to take action as we deem appropriate which may include closing your account. The undersigned's signature pages to this Subscription Agreement shall also constitute a counterpart signature page to the LLC Agreement upon acceptance thereof by PALCO. Please separately initial each of the representations below. Except in the case of fiduciary accounts, you may not grant any person a power of attorney to make the representations on your behalf. In order to induce PIMCO Asset-Based Lending Company LLC to accept this subscription, I hereby represent and warrant to you as follows: I have received a copy of the PPM. INVESTOR CO-INVESTOR INITIALS INITIALS I am an "accredited investor" as defined in Rule 501 promulgated under Regulation D under the U.S. Securities Act of 1933, as amended (the "Securities Act"). All investors please also complete the questionnaires in Appendix A and D. INITIALS INITIALS I acknowledge that there is no public market for the Shares and, thus, my investment in Shares is not liquid. INITIALS INITIALS I acknowledge that the Shares have not been registered and are not expected to be registered under the laws of any country or jurisdiction outside of the United States except as otherwise described in the PPM. INITIALS INITIALS I am purchasing the Shares for my own account. INITIALS INITIALS I understand that the transaction price per Share at which my investment will be executed will be made available on PIMCO Asset-Based Lending Company LLC's website at [www.pimco.com/palcoseriesi/www.pimco.com/palcoseriesii]. INITIALS INITIALS I understand that I am not committed to purchase Shares at the time my subscription order is submitted and I may cancel my subscription at any time before five business days prior to the last business day of the month. I understand that I may withdraw my purchase request by notifying the transfer agent, through my financial intermediary or directly on PIMCO Asset-Based Lending Company LLC's toll-free, automated telephone line, (844) 705-0386. INITIALS INITIALS I am a benefit plan investor within the meaning of Section 3(42) of the Employee Retirement Income Security Act of 1974 ("ERISA").7 (Initial ONLY if applicable) INITIALS INITIALS I declare that the information supplied in this Subscription Agreement (including, without limitation, Appendices) is true and correct and may be relied upon by PIMCO Asset-Based Lending Company LLC. I acknowledge that the Broker-Dealer/Registered Representative (Broker-Dealer/Registered Representative of record) and its designated clearing agent, if any, will have full access to my account information, including the number of shares I own, tax information (including tax documents) and redemption information. Subscriber may change the Broker-Dealer/Registered Representative of record at any time by contacting PIMCO Asset-Based Lending Company LLC at the number indicated below. SUBSTITUTE IRS FORM W-9 CERTIFICATIONS (required for U.S. investors): Under penalties of perjury, I certify that: (1) The number shown on this Subscription Agreement is my correct taxpayer identification number (or I am waiting for a number to be issued to me) and the information provided in Section 2 (Ownership Type) and Section 3 (Investor Information), as applicable, is correct; and (2) I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service ("IRS") that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding; and (3) I am a U.S. citizen or other U.S. person (including a resident alien) (defined in IRS Form W-9); (4) The FATCA code(s) entered on this form (if any) indicating that I am exempt from FATCA reporting is correct; and (5) The that the information contained in the executed copy (or copies) of IRS Form W-9 (and any accompanying required documentation) and any Cayman Islands self-certification, when submitted to PALCO will, in each case, be true, correct and complete. In the event of any change in the applicable status of the Subscriber or in the event that any IRS Form W-9 or a Cayman Islands self-certification (or other applicable tax form) previously provided becomes incorrect or obsolete, including by operation of law, the Subscriber will promptly inform the Administrator thereof and execute and deliver a new IRS Form W-9 or a Cayman Islands self-certification (or other applicable tax form). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. The Internal Revenue Service does not require your consent to any provision of this document other than the certifications required to avoid backup withholding. 7 The term "benefit plan investor" is defined to include (i) employee benefit plans subject to Title I of ERISA (e.g., US corporate pension plans, Taft-Hartley plans, and 401(k) plans), (ii) plans subject to Section 4975 of the Internal Revenue Code (e.g., "Keogh" plans and individual retirement accounts and arrangements ("IRAs")), and (iii) entities (e.g., a fund-of-funds and a collective investment trust) whose underlying assets are deemed to constitute "plan assets" under ERISA due to a failure of the entity to meet one of the regulatory exceptions under ERISA. Governmental plans and non-US plans are not included in this definition. Page 6 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors (12) SUBSCRIBER SIGNATURES (Cont'd) ERISA INVESTORS If I am, or am investing on behalf of, any plan that is subject to Title I of ERISA, Section 4975 of the U.S. Internal Revenue Code of 1986, as amended (the "Code") or any other U.S. or non-U.S. federal, state, local or other laws or regulations that are similar to the fiduciary responsibility or prohibited transaction provisions of Title I of ERISA or the Code (collectively, "Other Plan Laws"): (1) I represent and warrant that my acquisition and holding of the Shares will not violate or otherwise result in a non-exempt prohibited transaction under ERISA, the Code or a violation of, or otherwise subject PALCO or PIMCO to, any applicable Other Plan Law. (2) I acknowledge and agree that I have neither sought, nor received, any advice, including, without limitation, in a fiduciary capacity, from PIMCO in connection with the purchase and holding of the Shares. (3) I have independently determined that the purchase and holding of the Shares is in accordance with the terms of my governing instruments, if any, and complies with all applicable requirements of ERISA, the Code and any applicable Other Plan Law. (MUST BE SIGNED BY CUSTODIAN OR TRUSTEE IF PLAN IS ADMINISTERED BY A THIRD PARTY) SIGNATURE OF INVESTOR DATE SIGNATURE OF CO-INVESTOR OR CUSTODIAN (If applicable) DATE (13a) REGISTERED REPRESENTATIVE (Please complete ONLY if you are a Registered Representative otherwise skip to Section 13b.) BROKER-DEALER (Required information for sales made directly through a Broker-Dealer. If the shares are being purchased through an RIA, please complete Section 13b instead.) Please note that unless previously agreed to in writing by PALCO, all sales of securities must be made through a Broker-Dealer or a Registered Investment Adviser firm ("RIA"). This Section 13a must be completed for shares being purchased directly through a Broker-Dealer. If the shares are being purchased through an RIA, please complete Section 13b of this Subscription Agreement instead. The Registered Representative must sign below to complete the order. Registered Representative hereby warrants that he/she is duly licensed and may lawfully sell shares in the state designated as the investor's legal residence. BROKER-DEALER REGISTERED REP ADVISOR MAILING ADDRESS CITY STATE ZIP FIRM CRD NUMBER REP/RIA CRD NUMBER TELEPHONE NUMBER E-MAIL ADDRESS FAX NUMBER OPERATIONS CONTACT NAME OPERATIONS CONTACT E-MAIL ADDRESS The undersigned confirm(s), which confirmation is made on behalf of the Broker-Dealer with respect to sales of securities made through a Broker-Dealer, that they (i) have reasonable grounds to believe that the information and representations concerning the investor identified herein are true, correct and complete in all respects; (ii) have discussed such investor's prospective purchase of Shares with such investor; (iii) have advised such investor of all pertinent facts with regard to the lack of liquidity and marketability of the Shares; (iv) have delivered or made available the PPM to such investor; (v) have reasonable grounds to believe that the investor is purchasing these Shares for his or her own account; (vi) have reasonable grounds to believe that the purchase of Shares is a suitable investment for such investor, that such investor meets the suitability standards applicable to such investor set forth in the PPM and that such investor is in a financial position to enable such investor to realize the benefits of such an investment and to suffer any loss that may occur with respect thereto; and (vii) have advised such investor that the Shares have not been registered and are not expected to be registered under the laws of any country or jurisdiction outside of the United States except as otherwise described in the PPM. The undersigned Registered Representative represents and certifies that, if the investor is a "retail customer" as defined in the Securities Exchange Act of 1934 (the "Exchange Act") Rule 15l-1 ("Regulation Best Interest"), (i) the undersigned has a reasonable basis to believe that (a) a purchase of Shares would be in the best interest of the investor based upon the investor's investment profile and the potential risks, rewards, and costs associated with such an investment and (b)(i) the undersigned has not placed its interests or those of the Registered Representative ahead of the interest of the investor in recommending such investment and (ii) undersigned and the Registered Representative have complied with any applicable enhanced standard of conduct, including but not limited to, the other requirements of Regulation Best Interest in relation to the proposed purchase of Shares. The undersigned Registered Representative further represents and certifies that, in connection with this subscription for Shares, he or she has complied with and has followed all applicable policies and procedures under his or her firm's existing anti-money laundering program and customer identification program, including applicable document/information retention requirements. The undersigned Registered Representative further represents and certifies that, upon request from PALCO or an affiliate, such Registered Representative will provide PALCO with identification documentation and other information about the investor collected pursuant to these policies and procedures. During the life of the investment, but no more than annually, the undersigned Registered Representative agrees to provide, upon request from PALCO or an affiliate, a verification of continued compliance with this section 13a. THIS SUBSCRIPTION AGREEMENT AND ALL RIGHTS HEREUNDER SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. REGISTERED REP DATE BRANCH MANAGER SIGNATURE (If required by Broker-Dealer) DATE (13b) INVESTMENT ADVISOR REPRESENTATIVE/ RIA INFORMATION (Required information for sales made through an The Investment Advisor Representative ("Representative"), on behalf of the Representative and the RIA, must sign below to complete the order. A principal or other authorized signatory of the RIA must also sign if required by the RIA. Representative hereby warrants that Representative is duly licensed and authorized to execute this Subscription Agreement on behalf of Representative and the RIA, and may lawfully provide investment advice regarding the shares in the state designated as the investor's legal residence. RIA FIRM INVESTMENT ADVISOR REPRESENTATIVE NAME MAILING ADDRESS Page 7 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors RIA. If the shares are being purchased directly through a Broker-Dealer, please complete Section 13a instead.) CITY STATE ZIP IARD NUMBER (if known) RIA NUMBER TELEPHONE NUMBER E-MAIL ADDRESS FAX NUMBER OPERATIONS CONTACT NAME OPERATIONS CONTACT E-MAIL ADDRESS The undersigned confirm by their signature, on behalf of the Representative and RIA, that Representative and RIA: (i) have reasonable grounds to believe that the information and representations concerning the investor identified herein are true, correct and complete in all respects; (ii) have verified, if other than individual ownership, that the individual executing on behalf of the investor is properly authorized and identified; (iii) have discussed such investor's prospective purchase of shares with such investor; and (iv) have advised such investor of all pertinent facts with regard to the liquidity and marketability of the shares. The Representative and RIA are not authorized or permitted to give, and represents that they have not given to a prospective investor, any information or any representation concerning the shares except (i) as set forth in the PPM and (ii) any sales literature which has been approved in advance in writing by PALCO (such information, the "Supplemental Information"). The Representative represents that Representative has not used or will not use any unapproved materials related to PALCO. The Representative has delivered a copy of the PPM, to each investor to whom an offer is made prior to or simultaneously with the execution of this Subscription Agreement. The Representative and RIA represent that it has not shown or given to the investor any material marked "RIA only," "For Financial Advisor Use Only" or otherwise bearing a legend denoting that it is not to be shared with or given to prospective investors. The Representative and RIA hereby agree to, and shall, indemnify and hold harmless PALCO, its respective affiliates, and any directors, officers, partners, employees or agents of the foregoing (collectively, "PALCO Affiliates"), against any and all direct or third-party claims, losses, damages, or liabilities, joint or several, including but not limited to any claims, losses, damages, or liabilities relating to or regarding the suitability of the investment for the investor, whether or not the investment was in the best interest of the investor, and/or any claims relating to statements made by the RIA to the investor with respect to the purchase of shares or otherwise with respect to PALCO (including any investigative, legal, and other costs and expenses reasonably incurred in connection with, and any amounts paid in settlement of any action, suit, proceeding, or legislative or regulatory inquiry) (collectively "Claims"), for which any of the PALCO Affiliates may become subject, to the extent that such Claims arise out of or are based upon: (i) the Representative or RIA's fraud, willful default, or negligence; or (ii) the Representative or RIA's (a) violation of applicable law or regulation, (b) misrepresentation to the investor(s), (c) breach of any warranty or representation of the Representative or RIA herein, or (d) failure to fulfill any covenant or agreement of the Representative or RIA contained herein. The Representative and RIA shall not be liable under the indemnification provisions of this Subscription Agreement with respect to a party or other person entitled to indemnification hereunder (the "Indemnified Party") unless such Indemnified Party shall have notified the Representative and RIA in writing within a reasonable time after notice giving information of the nature of the claim shall have been received by such Indemnified Party, but failure to notify the Representative or RIA of any such claim shall not relieve the Representative or RIA from any liability that it may have to the Indemnified Party against whom such claim is made, except to the extent that the failure to notify results in the failure of actual notice to the Representative or RIA and such indemnifying party is materially damaged by being unable effectively to defend such claim solely as a result of failure to give or delay in giving such notice. In case an action is brought directly against the Indemnified Party, or the Indemnified Party becomes directly involved in the action, the Representative or RIA will be entitled to participate, at their own expense, in the defense thereof. The Representative and RIA also shall be entitled to assume the defense thereof, with counsel satisfactory to the Indemnified Party in its reasonable judgment. After notice from the Representative or RIA to the Indemnified Party of the Representative's or RIA's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Representative or RIA will not be liable to such party under this Subscription Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation, unless (i) the Representative or RIA and the Indemnified Party 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 the RIA and the Indemnified Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between or among them. Neither the Representative nor the RIA shall be liable for any settlement of any proceeding effected without its written consent but if settled with such consent, the Representative and RIA agree to indemnify the Indemnified Party from and against any loss or liability by reason of such settlement. The RIA may settle any Claim covered by indemnification hereunder, provided such settlement involves solely the payment of money and a complete and total release from said Claim. A successor by law of the Indemnified Parties shall be entitled to the benefits of the indemnification contained in this Subscription Agreement. The RIA represents that it is properly licensed and presently registered as an investment adviser under the Advisers Act, and has complied with registration or notice filing requirements of the appropriate regulatory agency of each state in which the RIA has clients or is exempt from such registration requirements. The Representative and RIA represent that each is in compliance with all the applicable requirements imposed upon it under (a) the Securities Act, the Exchange Act, and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") promulgated under both such acts, (b) all applicable state securities laws and regulations as from time to time in effect, (c) any other state and federal laws and regulations applicable to the activities of the Representative or RIA pursuant to this Subscription Agreement, including without limitation the privacy standards and requirements of state and federal laws, including the Gramm-Leach-Bliley Act of 1999, and the laws governing money laundering abatement and anti-terrorist financing efforts, including the applicable rules of the SEC; and d) this Subscription Agreement and the PPM. The RIA agrees to comply with the record-keeping requirements imposed by federal and state laws, including those records related to suitability and to make the suitability records available to PALCO upon request. The Representative and RIA represent that the investor meets the suitability and financial qualifications set forth in Section 12 and Appendix A of this Subscription Agreement and the PPM, and is a person who is eligible to purchase the applicable type of shares as described in the PPM. The Representative and RIA have reasonable grounds to believe that the purchase of shares by the investor is a suitable and appropriate investment for such investor. In making this determination, the RIA has reasonable grounds to believe that the investor: (a) can reasonably benefit from an investment in PALCO based on the prospective investor's overall investment objectives and portfolio structure; (b) is able to bear the economic risk of the investment based on the prospective investor's overall financial situation; and (c) has apparent understanding of (1) the fundamental risks of the investment, (2) the risk that the investor may lose the entire investment, (3) the lack of liquidity of the shares, (4) the restrictions on transferability of the shares, (5) the tax consequences of the investment, and (6) the background and qualifications of PIMCO. The Representative and RIA have made this determination on the basis of information it has obtained from the investor, including at least the age, investment objectives, investment experiences, income, net worth, financial situation, and other investments of the prospective investor, as well as any other pertinent factors. Page 8 of 21

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(13b) INVESTMENT ADVISOR REPRESENTATIVE/ RIA INFORMATION (Required information for sales made through an RIA. If the shares are being purchased directly through a Broker-Dealer, please complete Section 13a instead.) (Continued) The Representative and RIA represent further that they have conducted, or have directed an agent or the account custodian to conduct on the RIA's behalf, all necessary due diligence and "know your customer" checks on the investor in order to comply with any and all applicable laws, rules, and regulations including, but not limited to, the USA Patriot Act of 2001, the Bank Secrecy Act of 1970, as amended, regulations or orders issued by OFAC, and any other applicable anti-money laundering laws, rules, or regulations. With respect to any use by the Representative and RIA of electronic delivery of the PPM and Supplemental Information and electronic signature of the Subscription Agreement, the Representative and RIA represent and warrant that each will comply with (a) all applicable rules, regulations and guidelines issued by the SEC and any other applicable laws or regulations and guidelines; and (b) the Electronic Signatures in the Global and National Commerce Act and the Uniform Electronic Transactions Act, to the extent applicable, as adopted in each applicable jurisdiction and any other applicable laws. The undersigned represents that the shares will be purchased through the RIA listed above. RIA and PALCO acknowledge that if RIA and PALCO have executed an RIA selected dealer (or other comparable) agreement for the offering of shares of PALCO, then such agreement shall supersede any conflicting representations contained herein in this Section 13b. THIS SUBSCRIPTION AGREEMENT AND ALL RIGHTS HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. INVESTMENT ADVISOR REPRESENTATIVE SIGNATURE DATE PRINCIPAL OR OTHER RIA AUTHORIZED SIGNATORY SIGNATURE (if required by RIA) (14) MISCELLANEOUS If investors participating in the Distribution Reinvestment Plan or making subsequent purchases of Shares of PIMCO Asset-Based Lending Company LLC experience a material adverse change in their financial condition or can no longer make the representations or warranties set forth in Section 12 above, they are asked to promptly notify PIMCO Asset-Based Lending Company LLC and the Broker-Dealer in writing. The Broker-Dealer may notify PIMCO Asset-Based Lending Company LLC if an investor participating in the Distribution Reinvestment Plan can no longer make the representations or warranties set forth in Section 12 above, and PIMCO Asset-Based Lending Company LLC may rely on such notification to terminate such investor's participation in the Distribution Reinvestment Plan. All items on this Subscription Agreement must be completed in order for your subscription to be processed. For your subscription request to be accepted for any given month, the completed and executed Subscription Agreement and the full subscription amount must be received by PALCO or its designee no later than 4 PM EST five (5) business days prior to the first calendar day of the applicable month (unless waived). Upon acceptance of your subscription request, you will receive a written confirmation of your purchase. Subscribers are encouraged to read the PPM in its entirety for a complete explanation of an investment in the Shares of PIMCO Asset-Based Lending Company LLC. Return the completed Subscription Agreement to: Regular Mail To: PIMCO Asset-Based Lending Company LLC – Series [I/II] 650 Newport Center Drive, Newport Beach, CA 92660 Overnight To: PIMCO Asset-Based Lending Company LLC – Series [I/II] 650 Newport Center Drive, Newport Beach, CA 92660 PIMCO Asset-Based Lending Company LLC – Series [I/II] Investor Relations: (212) 776-1689 Email: AltsInvestorServicing@pimco.com Submit the Investment Amount provided in Section [I/II]: By Mail — Attach a check made payable to By Wire — Bank Name: State Street Bank and Trust Company Account Name: Address: John Adams Building, 1776 Heritage Dr, North Quincy, MA 02171 ABA Routing Number: Demand Deposit Account Number: Please request when sending a wire that the wire reference the subscriber's name in order to assure that the wire is credited to the proper account. Page 9 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors The Subscriber qualifies as an "accredited investor" within the meaning of Regulation D under the Securities Act. The Subscriber is eligible to invest in PALCO as an accredited investor if the Subscriber is able to affirmatively check one of the boxes below (please check each box that accurately describes the Subscriber): (a) The Subscriber is a natural person who had an income in excess of $200,000 in each of the two most recent years (or joint income with the Subscriber's spouse or "spousal equivalent"8 in excess of $300,000 in each of those years) and has a reasonable expectation of reaching the same income level in the current year. (b) The Subscriber is a natural person who has a net worth (or joint net worth with the Subscriber's spouse or spousal equivalent) in excess of $1,000,000.9 NOTE: When calculating net worth, exclude from the calculation the estimated fair market value of the Subscriber's primary residence at the time of the sale of the Shares; exclude from the calculation all indebtedness (e.g., a mortgage or home equity loan or line of credit) secured by the Subscriber's primary residence, up to the estimated fair market value of such primary residence at the time of the sale of the Shares; and include in the calculation as a liability the indebtedness secured by the Subscriber's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of the Shares. NOTE: When calculating joint net worth, can aggregate the net worth of the Subscriber and the Subscriber's spouse or spousal equivalent; to include assets in the calculation, the assets need not be held jointly; and to rely on this joint net worth standard, securities need not be purchased jointly. (c) The Subscriber is a natural person holding in good standing the General Securities Representative license (Series 7), the Investment Adviser Representative license (Series 65), the Private Securities Offerings Representative license (Series 82), and/or any other professional certifications or designations or credentials from an accredited educational institution that the U.S. Securities and Exchange Commission ("SEC") has designated as qualifying an individual for accredited investor status.10 (d) The Subscriber is a "family office,"11 as defined under the Advisers Act, (x) with assets under management in excess of $5,000,000; (y) that was not formed for the specific purpose of acquiring the securities offered, and (z) whose subscription in PALCO is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment and does not rely on PALCO or its affiliates for a recommendation. (e) The Subscriber is a "family client," as defined under the Advisers Act, that meets the requirements (x), (y), and (z) set forth in paragraph (2)(d) above, whose subscription in PALCO is directed by such "family office" pursuant to the Advisers Act. (f) The Subscriber is a trust (e.g., a personal trust) (i) with total assets in excess of $5,000,000, (ii) that was not formed for the specific purpose of investing in PALCO, and (iii) whose selected person responsible for directing the investment of assets of the trust in PALCO has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of an investment in PALCO. (g) The Subscriber is an entity with total assets in excess of $5,000,000 which was not formed for the specific purpose of investing in PALCO and which is one of the following: (i) a corporation; or (ii) a partnership; or (iii) a limited liability company; or (iv) a Massachusetts or similar business trust; or (v) an organization described in Section 501(c)(3) of the Code. (h) The Subscriber is a revocable trust which may be amended or revoked at any time by the grantors thereof, and of which all of the grantors are "accredited investors" because each grantor is an individual who (i) has a net worth (or joint net worth with the Subscriber's spouse or spousal equivalent) in excess of $1,000,000 (calculated in the manner set forth in paragraph (2)(b) above); (ii) had individual income in excess of $200,000 in each of the two most recent years and expects to have individual income in excess of $200,000 in the current year; or (iii) had joint income together with the Subscriber's spouse or spousal equivalent in excess of $300,000 in each of the two most recent years and expects to have joint income in excess of $300,000 in the current year.12 (i) The Subscriber is licensed, or subject to supervision, by U.S. federal or state examining authorities as a "bank" (as defined in Section 3(a)(2) of the Securities Act), a "savings and loan association" (or other institution described in Section 3(a)(5)(A) of the Securities Act) or an "insurance company" (as defined in Section 2(a)(13) of the Securities Act), or is an account for which a bank or savings and loan association is subscribing in a fiduciary capacity. (j) The Subscriber is registered with the SEC as a broker or dealer under the Exchange Act, or is an investment company registered under the Investment Company Act, or has elected to be treated or qualifies as a "business development company" (within the meaning of Section 2(a)(48) of the Investment Company Act). (k) The Subscriber is an investment adviser registered pursuant to Section 203 of the Advisers Act or registered pursuant to the laws of a state. (l) The Subscriber is an investment adviser relying on the exemption from registering with the SEC under Section 203(l) or (m) of the Advisers Act. (m) The Subscriber is a Small Business Investment Company ("SBIC") licensed by the Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958, as amended. (n) The Subscriber is a Rural Business Investment Company ("RBIC")13 as defined in Section 384A of the Consolidated Farm and Rural Development Act, as amended. 8 The term "spousal equivalent" shall mean a cohabitant occupying a relationship generally equivalent to that of a spouse. Spousal equivalents may pool their finances for the purposes of qualifying as accredited investors. 9 If the Subscriber has increased the amount of indebtedness secured by the Subscriber's primary residence within 60 days prior to the sale of the Shares and such increase is not as a result of the acquisition of the primary residence, the Subscriber must include in the calculation as a liability such increase regardless of whether the amount of overall indebtedness is less than the estimated fair market value of the residence. 10 For purposes of this item, eligible professional certifications, designations and credentials are set forth at sec.gov/rules/other/2020/33-10823.pdf. 11 "Family offices" are entities established by families to manage their assets, plan for their families' financial future, and provide other services to family members. Subscribers who check this box under the capacity of "family office" are expected to have no clients other than "family clients." "Family clients" generally are family members, former family members, and certain key employees of the family office, as well as certain of their charitable organizations, trusts, and other types of entities. Although the definition of "family client" from Rule 501(a)(13) includes both natural persons and institutions, only family clients that are institutions may be considered institutional accredited investors. 12 In general, a trust other than a revocable grantor trust will not qualify as an "accredited investor" solely because all of its grantors and/or all of its beneficiaries are "accredited investors." 13 An RBIC is a company that is approved by the Secretary of Agriculture and that has entered into a participation agreement with the Secretary of Agriculture. Page 10 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix A (o) The Subscriber is a private business development company as defined in Section 202(a)(22) of the Advisers Act. (p) The Subscriber is an employee benefit plan (other than a participant-directed plan) established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, with total assets in excess of $5,000,000. (q) The Subscriber is an employee benefit plan within the meaning of ERISA, (i) which has total assets in excess of $5,000,000, (ii) for which investment decisions are made by a plan fiduciary which is a bank, savings and loan association, insurance company, or registered investment adviser, or (iii) if a self-directed plan, in which investment decisions are made solely by persons that are "accredited investors." (r) The Subscriber is an entity in which all of the equity owners are directly or indirectly persons described in this Appendix A.14 (s) The Subscriber is any entity of a type not listed in (f) through (r) above, (x) that owns "investments," as defined in Rule 2a51-1(b) under the Investment Company Act, (y) in excess of $5,000,000 and (z) that was not formed for the specific purpose of acquiring the securities offered.15 14 In determining accredited investor status under Rule 501(a)(8), one may look through various forms of equity ownership to natural persons. If those natural persons are themselves accredited investors, and if all other equity owners of the entity are accredited investors, the entity would be an accredited investor under Rule 501(a)(8). 15 For example, the Subscriber may be an Indian tribe, governmental body, fund, or entity organized under the laws of a foreign country, (i) that owns "investments," as defined in Rule 2a51-1(b) under the Investment Company Act, (ii) in excess of $5,000,000 and (iii) that was not formed for the specific purpose of investing in the securities offered. Page 11 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix B INSTITUTIONAL SUITABILITY CERTIFICATE AFFIRMATIVE INDICATION OF EXERCISE OF INDEPENDENT JUDGMENT (Pursuant to FINRA Rule 2111) 1 Please fill out this form, sign, and reply via email: PALCOTA_INQ@statestreet.com In connection with any recommended2 transaction or investment strategy by a registered broker-dealer, the undersigned acknowledges on behalf of the Institution named below that: I. It is an Institutional Account as defined in FINRA Rule 4512(c)3 or is a "family office" (as defined in Rule 202(a)(11)(G)-1 under the Advisers Act) with assets under management in excess of $50,000,000 or more, not formed for the specific purpose of acquiring the Shares offered, and whose purchase of the Shares is directed by one or more experienced securities or financial services professionals who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the purchase of the Shares and does not rely on PALCO or its affiliates for a recommendation4; II. It (1) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; and (2) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; III. It will notify PIMCO if anything in this Certificate ceases to be true; IV. This Certificate and the information contained herein may be shared with broker-dealers or third parties, including via a secure database or electronic platform established by PIMCO; and V. He or she is authorized to sign on behalf of the Institutional Account named below. NOTE: This Certificate shall apply with respect to all recommended transactions and investment strategies involving securities that are entered into by the "Institutional Account" named in this Certificate, whether for the account of such Institutional Account or for the account of any beneficial owner that has delegated decision making authority to such Institutional Account. Institutional Account Name: Address, City, State, Zip: Name of Authorized Signatory: U.S. Tax ID/EIN (if applicable): Title of Authorized Signatory: Telephone: Email Address: Signature of Authorized Signatory: Date: Name of Contact at Institution (for questions and updates) Telephone: Email Address: 1 Available at http://www.finra.org/Industry/Regulation/FINRARules/. 2 As defined in FINRA Rules. 3 The term "Institutional Account" means the account of: (1) a bank, savings and loan association, insurance company or registered investment company; (2) an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions); or (3) any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million as of the date of this Certificate (whether such assets are invested for such person's own account or under management for the account of others). 4 "Family offices" that meet these criteria are not considered "retail customers" for the purposes of the SEC's Regulation Best Interest and Form CRS under the Exchange Act, as amended. Page 12 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix C Information Regarding Applicability of Rule 506(d) Rule 506(d) Representations The Subscriber should answer each of the statements below in respect of the Beneficial Owner and any other person who could be deemed to be a "beneficial owner"16 of the Shares held by the Beneficial Owner (collectively with the Beneficial Owner, the "Covered Party"). The Subscriber represents and warrants: True False The Covered Party has not been convicted of any felony or misdemeanor: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities. The Covered Party is not subject to any order, judgment or decree of any court of competent jurisdiction that restrains or enjoins it from engaging or continuing to engage in any conduct or practice: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities. The Covered Party is not subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the CFTC; or the National Credit Union Administration that: (i) bars it from association with an entity regulated by such commission, authority, agency, or officer; (ii) bars it from engaging in the business of securities, insurance or banking; (iii) bars it from engaging in savings association or credit union activities; or (iv) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct. The Covered Party is not subject to an order of the SEC entered pursuant to Section 15(b) or 15B(c) of the Exchange Act (15 U.S.C. 78o(b) or 78o-4(c)) or Section 203(e) or (f) of the Advisers Act (15 U.S.C. 80b-3(e) or (f)) that: (i) suspends or revokes its registration as a broker, dealer, municipal securities dealer or investment adviser; (ii) places limitations on its activities, functions or operations; or (iii) bars it from being associated with any entity or from participating in the offering of any penny stock. The Covered Party is not subject to any order of the SEC that orders it to cease and desist from committing or causing a violation or future violation of: (i) any scienter-based anti-fraud provision of the federal securities laws or any other rule or regulation thereunder;17 or (ii) Section 5 of the Securities Act (15 U.S.C. 77e). The Covered Party is not suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade. The Covered Party has not filed (as a registrant or issuer), and was not, and was not named as an underwriter in, any registration statement or Regulation A offering statement filed with the SEC that was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, and is not the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued. The Covered Party is not subject to a U.S. Postal Service false representation order entered within five years of the date of this Subscription Agreement and the Covered Party is not subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the U.S. Postal Service to constitute a scheme or device for obtaining money or property by means of false representations. There is no action, suit, claim, proceeding, arbitration, inquiry or investigation pending or, to the Subscriber's knowledge, threatened against the Covered Party, which if adversely deter-mined, would give rise to any of the events described in (a) through (h) above. If the Subscriber responded "False" to any question above, please provide a description of the event, including the date or dates that each conviction, order, judgment, decree, suspension, expulsion or bar occurred or was issued, or a description of the status of any action, suit, claim, proceeding, arbitration, inquiry or investigation. Please also include any additional relevant in-formation as attachments to this Subscription Agreement. The representations and warranties in clauses (a) through (i) above shall be true and correct at all times while the Subscriber holds Shares in PALCO, and, notwithstanding any other provisions of this Subscription Agreement, if such representations and warranties are no longer true and correct then the Subscriber shall immediately notify PIMCO in16 "Beneficial owner" of a security under the Rule 506(d) of the Securities Act has the same meaning as it does under Rule 13d-3 of the Exchange Act, which defines it to include any person who directly or indirectly has or shares voting power (including the power to vote, or to direct the voting of, such security) and/or investment power (including the power to dispose, or to direct the disposition of, such security). 17 Scienter-based anti-fraud provisions of the federal securities laws include section 17(a)(1) of the Securities Act (15 U.S.C. 77q(a)(1)), Section 10(b) of the Exchange Act (15 U.S.C. 78j(b)) and 17 CFR 240.10b-5, Section 15(c)(1) of the Exchange Act (15 U.S.C. 78o(c)(1)) and Section 206(1) of the Advisers Act (15 U.S.C. 80b-6(1)), or any other rule or regulation thereunder. 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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix C writing. The Subscriber shall also immediately notify PIMCO upon the occurrence of any pending investigation, proceeding, or other action that could give rise to an occurrence described in the prior clauses (a) through (i). PALCO may, in its sole discretion, cause the Subscriber to compulsorily withdraw from PALCO, in whole or in part, at any time if PIMCO knows or has reason to believe that the Subscriber has breached or may breach one or more of the representations and warranties set forth above. In addition, Subscribers that are not able to check "True" with respect to the representations (a) through (i) above are hereby notified that they may be required as a condition to their holding the Shares and not being withdrawn from PALCO in whole or in part to provide a description in writing on a form acceptable to PIMCO in its sole discretion of any matters covered in (a) through (i) and that such description may be disclosed to investors in PALCO. Page 14 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix D AML Subscriber Identification Questionnaire Please fill out this form, sign, and reply via email or fax. (a) General Information (1) Subscriber full name, including any aliases (2) Subscriber Physical or Residential Address (3) Principal Business Address (if different address above) (4) Nature / Purpose / Objective of Entity, if applicable (5) Domicile of Formation, if applicable (6) Subscriber's Nationality (Individual) (7) Subscriber's Place of Birth (Individual) (8) Subscriber's Occupation (Individual) (b) Senior Political Figure Status (1) Is the Subscriber or any of the Beneficial Owners or Control Persons (as defined below) a Senior Political Figure or Politically Exposed Person, as defined in Section (o)? Yes No (2) If "Yes," provide relationship of Senior Political Figure or Politically Exposed Person to Subscriber. (c) Source of Funds (1) Please indicate the source of funds to be invested: (2) Is the source of funds family capital or is the Subscriber a family office? Yes No (d) Business / Source of Wealth Please provide an explanation of the Subscriber's Business / Source of Wealth (e) Indication of Expected Turnover Please indicate the number of expected transactions through the account Page 15 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix D (f) Fund of Fund Status Is the amount of the Subscriber's subscription (as set forth in this Agreement, combined with any previous investments in the Fund) 40% or more of the total assets and committed capital of the Subscriber? Yes No (g) Agent or Nominee Status (1) Is the Subscriber investing as an agent, nominee, or on behalf of another person? Yes No (2) If "Yes," provide name of such person and briefly describe their relationship to the Subscriber. (h) Bearer Shares Has the Subscriber issued, or does or will it issue, bearer shares or bearer instruments? Yes No (i) Beneficial Owners For Legal Entity Subscribers, unless one of the exceptions in Section (n) applies, please identify each natural person who holds 10% or greater direct or indirect equity interest in the Subscriber. Note: The Fund may seek additional information on beneficial owners. Name and any Aliases Date of Birth Place of Birth Nationality SSN Residential Address Percentage Ownership Page 16 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix D (j) Control Persons For Legal Entity Subscribers, unless one of the exceptions in Section (n) applies, please identify at least one "Control Person" of the Entity, meaning any individual with significant responsibility to control, manage, or direct the legal entity. A Control Person may be an executive officer or senior manager (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Treasurer). For Trusts, identify any Trustees, Grantors, Settlor, Protector (if any), of the Trust, and the beneficiaries (including every beneficiary that falls within a designated characteristic or class) or the Trust. Name and any Aliases Date of Birth Place of Birth Nationality SSN Residential Address (k) Power of Attorney For legal entities, unless one of the exceptions in Section (n) applies, please identify any natural persons having powers of attorney over the Subscriber, if applicable. For each such person, provide a copy of a current photographic ID and copy of proof of address. Name and any Aliases Residential Address Page 17 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix D (l) Identity Verification (1) Natural Persons Subscribers: Provide a copy of a current valid passport, national ID card, driver's license (bearing photo and signature) and a copy or original of a bank reference, professional character reference, utility bill, or bank statement dated within the past 6 months that confirms the Subscriber's address. (2) Legal Entity Subscribers: a. Proof of Legal Existence: Provide the following, as applicable: Companies (a) A copy of certificate of incorporation (or equivalent) or copy of verification from a government registry website or a copy of a certificate of incorporation (or equivalent) and a copy of verification from government registry website; and a copy of the company constitution, memorandum and articles of association, or equivalent and (b) The directors' register and (c) A copy of the mandate authorizing the director(s) to enter the subscription (i.e., a board resolution or reference in constitutional document) Partnerships (a) A copy of certificate of registration (or equivalent) or copy of certificate of registration (or equivalent) and a copy of verification from a government registry website; and A copy of the partnership agreement or equivalent and (b) A copy of the mandate authorizing the general partner to enter into the subscription (board resolution or reference in constitutional document) Trusts (a) Copy of the trust deed (this may be redacted if one can clearly identify the information required) Unregistered Pension, Government Entity, Charities, Clubs and Societies (a) The articles of incorporation/corporate charter/extract from approved government registry and proof of tax exempt status of the legal entity (including obtaining a copy of a form submitted to the government tax collection body within the Subscriber's jurisdiction) b. Beneficial and Control Persons: Unless one of the exceptions in Section (n) applies, for each Beneficial Owner listed in Section (i) and/or Control Person listed in Section (j) above, provide a copy of a current valid passport, national ID card, driver's license (bearing photo and signature) and a copy or original of a bank reference, professional character reference, utility bill or bank statement dated within the past 6 months that confirms the person's address.Page 18 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix D (m) Authorized Signatories Please provide below or attach a list of authorized signatories for this investment and their signature specimens and provide evidence of appointment. Full Name Signature Specimen (n) Exceptions (1) If the Subscriber qualifies under any of the categories below, the Subscriber does not need to identify Beneficial Owners in Section (i) or Control Persons in Section (j). Please check any that apply and provide proof of status as indicated. Subscriber Type Applies (A) A Bank regulated by a U.S. Federal Functional Regulator or by a State bank regulator; a Banking Holding Company; or a Savings and Loan Bank Holding Company (provide proof of regulation) (B) A U.S. Government, U.S. Government Agency, and U.S. Central Bank / Monetary Authority18 (provide proof of government affiliation) (C) An Insurance Company regulated by a State (provide proof of regulation) (D) An Investment Adviser registered with the SEC under Section 202(a)(11) of the Investment Advisers Act of 1940 (provide proof of regulation) (E) A Mutual Fund regulated by the OCC or the SEC OR a company registered with the SEC under the Investment Company Act of 1940 (provide proof of regulation) (F) A Non-Financial Institution Public Company listed on the New York Stock Exchange, American Stock exchange, or NASDAQ Stock Market19 OR has a class of equity securities that is held of record by either (i) 2,000 persons, or (ii) 500 persons who are not accredited investors and, and on the last day of the subscriber's fiscal year, its total assets exceed $10 million (provide proof of listing) OR has issued equity or debt securities to the public in a registered offering and is required to file a registration statement under the Securities Act of 1933 (provide evidence of exchange registration) (G) A Securities and Commodities Broker/Dealer regulated by the SEC or the CFTC OR registered with the SEC under the Securities Exchange Act of 1934. The Securities Exchange Act of 1934 requires, without limitation, the following entities to be registered with SEC: Securities brokers or dealers; or an association of brokers and dealers registered as a national securities association OR registered with the CFTC (provide proof of government affiliation) (H) A Foreign Financial Institution that is required to provide beneficial ownership information to a collector (provide proof of regulation AND frequency and form in which it reports UBO information to their regulator and the regulatory citation that requires such reporting) (I) A non-U.S. Government, Non-U.S. Government Agency, Non-U.S. Central Bank/Monetary Authority or Supra-national Organization20 (provide proof of government affiliation) (J) A pension fund for a professional association or trade union or that is acting on behalf of employees of the entities listed above, including a plan established under the Employee Retirement Income Security Act of 1974 ("ERISA") in the U.S., or its equivalent outside of the U.S.; a Defined Contribution / Benefit Plan; an Individual Retirement Account (Employer sponsored only); Pension Schemes; a Superannuation Plan; and Registered Retirement Savings Plan (provide evidence of license to operate under the regulatory body; evidence of filings of required documentation with the regulatory body; letter of good standing from the regulatory body; or name of regulator and screenshot from the regulator's website showing proof of regulation by the regulatory body). (K) Any direct majority-owned subsidiary or direct or indirect wholly-owned subsidiary of any of the above (please provide copy of corporate structure depicting relationship and including all layers of ownership AND the proof of status required for the exempt parent entity) (2) If the Subscriber qualifies under any of these categories and provides the required documentation, the Subscriber does not need to identify Beneficial Owners in Section (i). Control Persons do need to be identified in Section (j) and such Control Persons need to provide the relevant identity verification information requested in Section (l). Please check any that apply and provide proof of status as indicated. Subscriber Type Applies (A) A charity, religious group or non-profit that is a nonprofit corporation or similar entity and filed its organizational documents with the appropriate State Authority (provide completed legal documentation for the entity type) (B) A Foundation or Endowment that is a nonprofit corporation or similar entity and filed its organizational documents with the appropriate State Authority (provide completed legal documentation for the entity type) (C) A University or Hospital that is a nonprofit corporation or similar entity and filed its organizational documents with the appropriate State Authority (provide completed legal documentation for the entity type) (D) A pooled investment vehicle that is operated or advised by a financial institution excluded under Section (n). 18 For the purposes of this exception, the Subscriber may be a department or agency of the U.S. OR the Subscriber may be a "subsidiary" of such department or agency. To meet the subsidiary test and qualify for the exclusion, the entity must: (1) be wholly or majority owned or controlled by the U.S. government; AND (2) exercise governmental authority on behalf of the U.S. 19 The non-FI public company must be designated as a "NASDAQ National Market Security" (except stock or interests listed under the separate "NASDAQ Capital Markets Companies" heading). 20 This exception includes a department or agency of a non-US government so long as the non-US government department or agency does not engage in the type of activity a private citizen or company can also participate in (i.e., standard financial transactions or business transactions). Page 19 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix D (o) Anti-Money Laundering and Sanctions Compliance Definitions As used in this Appendix D, the following terms shall have the following meanings: 1. Close Associate. "Close Associate" means, with respect to a Senior Foreign Political Figure or a Politically Exposed Person, a person who is widely and publicly known internationally (or actually known to the Subscriber) to maintain an unusually close relationship with the Senior Foreign Political Figure or Politically Exposed Person, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior Foreign Political Figure or Politically Exposed Person. 2. Foreign Bank. "Foreign Bank" means an organization that (a) is organized under the laws of a country outside the United States; (b) engages in the business of banking; (c) is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal banking operations; (d) receives deposits to a substantial extent in the regular course of its business; and (e) has the power to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank. 3. Foreign Shell Bank. "Foreign Shell Bank" means a Foreign Bank without a physical presence in any country, but does not include a Regulated Affiliate. 4. Immediate Family Member. "Immediate Family Member" means, for the purpose of this Appendix D, a spouse or a person considered to be the equivalent of a spouse, parent, sibling, children and their spouses or persons considered to be equivalent of a spouse, or a spouse's parents and siblings. 5. Non-Cooperative Jurisdiction or Territory. "Non-Cooperative Jurisdiction or Territory" means any non-U.S. country or territory that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization concurs. 6. Politically Exposed Person. "Politically Exposed Person" means individuals who are or have been entrusted with prominent public functions in a foreign or domestic country, including heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations or international organizations, important political party officials, and family members or Close Associates of any of the foregoing. In addition, a Politically Exposed Person includes any corporation, business or other entity that has been formed by, or for the benefit of, a Politically Exposed Person, as well as Immediate Family Members (as defined in this Appendix D) and Close Associates of Politically Exposed Persons. 7. Regulated Affiliate. "Regulated Affiliate" means a Foreign Shell Bank that (a) is an affiliate of a depository institution, credit union, or Foreign Bank that maintains a physical presence in the United States or a foreign country; and (b) is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or Foreign 8. Senior Political Figure. "Senior Political Figure" means (a) a current or former senior official in the executive, legislative, administrative, military or judicial branches of a government (whether elected or not), a current or former senior official of a major political party, or a current or former senior executive of a government-owned commercial enterprise, (b) a corporation, business, or other entity that has been formed by, or for the benefit of, any such individual, (c) an Immediate Family Member (as defined in this Appendix D) of any such individual, and (d) a person who is widely and publicly known (or is actually known) to be a Close Associate of such individual. For purposes of this definition, a "senior official" or "senior executive" means an individual with substantial authority over policy, operations, or the use of government-owned resources. Page 20 of 21

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for US Investors Appendix E Required Pre-Clearance Questions If you are a PIMCO or PALCO employee, certain non-employee personnel, officer, director, or an Immediate Family Member thereof, please select one or more applicable option(s) below (required) and complete the below Pre-Clearance Questions in this Appendix E: PIMCO employee/personnel or Immediate Family Member PALCO officer or director (including PIMCO employee who is PALCO officer or director) or Immediate Family Member For all transactions via the Executive Deferred Compensation Plan or otherwise in respect of PALCO, please answer the following questions to the best of your knowledge and belief: Yes No Do you have any questions about the fact that written approval is required prior to (i) transferring an interest in or (ii) partially or fully requesting repurchases of shares of in PALCO prior to PALCO being wound down and that requests to transfer or have shares repurchased will be reviewed on a case-by-case basis and there is no guarantee that the request will be approved? Do you possess information regarding any material and nonpublic changes to PALCO (e.g., pending changes in the share repurchase plan withdrawal rights, changes to the strategy, key personnel, material changes to NAV or otherwise)? Do you have any questions regarding your obligations under PIMCO's MNPI Policy, which prohibits (i) sharing material non-public information about PALCO or PALCO's holdings with any individual who is not authorized to possess such information; or (ii) using such information to make or influence others to make an investment decision with respect to PALCO? Are you a Section 16 filer of PALCO? •If yes, have you engaged in any opposite way transaction with PALCO, including compensation with PALCO, within the last 180 days? 21 "Immediate Family Member" (for the purpose of this Appendix E) means (1) an employee's spouse; (2) any of the following persons sharing the same household with the employee (which does not include temporary house guests): a person's child, stepchild, grandchild, parent, stepparent, grandparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, legal guardian, adoptive relative, or domestic partner; (3) any person sharing the same household with the employee (which does not include temporary house guests) that holds an account in which the employee is a joint owner or listed as a beneficiary; or (4) any person sharing the same household with the employee in which the employee contributes to the maintenance of the household and material financial support of such person. Page 21 of 21

## Exhibit 4.3

**Exhibit 4.3**![LOGO](g112132g01f01.jpg)

PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors Subscription Agreement for Non-US Investors The undersigned (the "Subscriber") hereby tenders this Subscription Agreement and applies for the purchase of the dollar amount of limited liability company interests (the "Shares") in Series [I/II] of PIMCO Asset-Based Lending Company LLC ("PALCO") set forth below. PALCO is managed by its operating manager, Pacific Investment Management Company LLC (the "Manager" and together with its affiliates and subsidiaries, "PIMCO"). Please see the confidential private placement memorandum, as may be amended and/or supplemented from time to time ("PPM"), for complete details regarding the offering by PALCO. This Subscription Agreement must be used only for the purpose of purchasing the Shares in Series [I/II] of PALCO. If you wish to purchase shares in Series [I/II] of PALCO, please complete a subscription agreement for Series [I/II] of PALCO. A. Investment Investment Amount $($1 million minimum initial investment) For your subscription request to be accepted for any given month, the full investment amount above must be received by PALCO's custodian or its designee no later than 4 PM EST five (5) business days prior to the first calendar day of the applicable month (unless waived). B. Investment Method Please identify the bank or other financial institution from which the Subscriber's funds will be wired. Name of U.S. financial institution:Address: Routing Number (ABA): Beneficiary Number: Beneficiary Account Name: Account Number: Telephone: Intermediary Bank Name Intermediary Bank SWIFT Code: Beneficiary Bank Name: Beneficiary Bank SWIFT Code: Beneficiary Bank Account Number: Remittance Remarks: Repurchase proceeds will only be remitted to the financial institution from which the investment amounts originated, unless PALCO consents otherwise in its sole discretion. In the event that you elect to opt out of the Distribution Reinvestment Plan, any distributions will be remitted to the financial institution from which the investment amounts originated, unless PALCO consents otherwise in its sole discretion. Repurchase requests may be submitted to PALCO's administrator (the "Administrator"), provided that the signed repurchase request is received by the Administrator prior to the end of the repurchase window in accordance with the PPM. If requested, the Administrator will undertake to promptly confirm in writing all repurchase requests which are received in good order. Subscribers failing to receive such requested written confirmation from the Administrator should contact the Administrator to obtain the same. C. Share Selection (required) Series [I/II] – Anchor I Shares [Series II – Anchor I-B Shares] Series [I/II] – Anchor II Shares Series [I/II] – Anchor II-B Shares [Series II – Anchor III Shares] Series [I/II] – Standard A Shares Series [I/II] – Standard B Shares Series [I/II] – E Shares (2) OWNERSHIP TYPE (Select Only One) Entity Name – Retirement Plan / Trust / Corporation / Partnership / Other Trustee(s) and/or authorized signatory(s) information MUST be provided in Sections 3.A and 3.B Entity Name Tax ID Number Date of Trust or Formation Entity Type (Select one. Required) Retirement Plan Trust Corp LLC Partnership Other Non-U.S. Jurisdiction (a) General Information (1) Subscriber full name, including any aliases (2) Subscriber Physical or Residential Address (3) Principal Business Address (if different address above) (4) Nature / Purpose / Objective of Entity, if applicable (5) Domicile of Formation, if applicable (6) Subscriber's Nationality (Individual) (7) Subscriber's Place of Birth (Individual) (8) Subscriber's Occupation (Individual) (b) Senior Political Figure Status (1) Is the Subscriber or any of the Beneficial Owners or Control Persons (as defined below) a Senior Political Figure or Politically Exposed Person, as defined in Section (o)? Yes No (2) If "Yes," provide relationship of Senior Political Figure or Politically Exposed Person to Subscriber. (c) Source of Funds (1) Please indicate the source of funds to be invested: (2) Is the source of funds family capital or is the Subscriber a family office? Yes No (d) Business / Source of Wealth Please provide an explanation of the Subscriber's Business / Source of Wealth (e) Indication of Expected Turnover Please indicate the number of expected transactions through the account Attach completed applicable Form(s) W-8BEN, W-8BEN-E, W-8IMY, W-8ECI and/or W-8EXP.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (3) INVESTOR INFORMATION (3) INVESTOR INFORMATION (Cont'd) A. Investor Name (Investor / Trustee / Executor / Authorized Signatory Information) (Residential street address MUST be provided. See Section 4 if mailing address is different than residential street address.) Subscriber Name (if an entity, state the entity name): Contact Person: Mailing Address: Telephone: Facsimile: Email: Year of Organization (entities): Date of Birth (individuals): Tax ID Number: The subscriber will hold the investment in PALCO: as principal as agent, nominee, or on behalf of another member Attach completed applicable Form(s) W-8BEN, W-8BEN-E, W-8IMY, W-8ECI and/or W-8EXP. Residence/Principal Place of Business (if different from the mailing address indicated above): Address: Registered Address (if different from the mailing address indicated above): Address: Address to which duplicate correspondence should be sent (if applicable): Address: Contact Person: Telephone: Facsimile: E-mail: Relationship to the Subscriber: If you are an "Institutional Account" as defined in the Financial Industry Regulatory Authority Rule 4512(c), please complete and sign the Institutional Suitability Certificate (attached hereto as Appendix B). If you are a PIMCO or PALCO employee, certain non-employee personnel, officer, director, or an Immediate Family Member thereof, please complete the Pre-Clearance Questions (attached hereto as Appendix E).

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (3) INVESTOR INFORMATION (Cont'd) B. Co-Investor Name (Co-Investor / Co-Trustee / Co-Executor / Co-Authorized Signatory Information, if applicable.) (Residential street address MUST be provided. See Section 4 if mailing address is different than residential street address.) Subscriber Name (if an entity, state the entity name): Contact Person: Mailing Address: Telephone: Facsimile: Email: Year of Organization (entities): Date of Birth (individuals): Tax ID Number: The subscriber will hold the investment in PALCO: as principal as agent, nominee, or on behalf of another member Attach completed applicable Form(s) W-8BEN, W-8BEN-E, W-8IMY, W-8ECI and/or W-8EXP. Residence/Principal Place of Business (if different from the mailing address indicated above): Address: Registered Address (if different from the mailing address indicated above): Address: Address to which duplicate correspondence should be sent (if applicable): Address: Contact Person: Telephone: Facsimile: E-mail: Relationship to the Subscriber: C. Financial Intermediary Name (Street address MUST be provided.) Entity Name: Mailing Address: (4) CONTACT INFORMATION (If different than provided in Section 3.A) Address: Telepho ne: Facsimile: E-mail: (5) INTERESTED PARTY INFORMATION (For mailed statements) FIRST NAME (MI) LAST NAME DAYTIME PHONE NUMBER RESIDENTIAL STREET ADDRESS CITY STATE ZIP (6) SELECT HOW YOU WANT TO RECEIVE YOUR DISTRIBUTIONS (Select only one) Please read entire section carefully. A. You are automatically enrolled in our Distribution Reinvestment Plan. If you do NOT wish to be enrolled in our Distribution Reinvestment Plan, and you instead elect to receive cash distributions, check this box and complete the information in Section 6.B : B. Complete the section below by selecting one of the four methods to receive cash distributions ONLY if you are NOT participating in the Distribution Reinvestment Plan and you instead have elected above to receive cash distributions per Section 6.A above. For Custodial held accounts, if you elect cash distributions the funds must be sent to the Custodian. 1. Wire transfer per the information set forth in Section 1.B above. 2. Cash/Check Mailed to the address set forth above (Available for Non-Custodial Investors only.) 3. Cash/Check Mailed to Third Party/Custodian NAME / ENTITY NAME / FINANCIAL INSTITUTION MAILING ADDRESS CITY STATE ZIP ACCOUNT NUMBER (required) 4. Cash/Direct Deposit Attach a pre-printed voided check. (Non-Custodial Investors Only) I authorize PIMCO Asset-Based Lending Company LLC or its agent to deposit my distribution into my checking or savings account. This authority will remain in force until I notify PIMCO Asset-Based Lending Company LLC in writing to cancel it. In the event that PIMCO Asset-Based Lending Company LLC deposits funds erroneously into my account, PIMCO Asset-Based Lending Company LLC is authorized to debit my account for an amount not to exceed the amount of the erroneous deposit. FINANCIAL INSTITUTION NAME MAILING ADDRESS CITY STATE ZIP YOUR BANK'S ABA ROUTING NUMBER YOUR BANK ACCOUNT NUMBER

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (7) ELECTRONIC DELIVERY FORM (Optional) By providing the Subscriber's initial and email address in this Section (7) below, the Subscriber consents to the delivery by PALCO, the Manager and/or the Administrator to the Subscriber (or the Subscriber's designated agents) of statements related to the Subscriber's investment in PALCO, reports and other communications relating to PALCO and/or the Subscriber's investment in PALCO (including, without limitation, net asset value information, subscription and repurchase activity, annual, quarterly or other reports, any notice (or updates thereto) from time to time required to be provided under applicable privacy and data protection laws that may be enacted or amended from time to time, including the California Consumer Privacy Act (the "CCPA"), the Data Protection Act, 2017 of the Cayman Islands (the "Cayman DPA"), the General Data Protection Regulation 2016/679 (the "GDPR"), the UK Data Protection Act 2018 (the "UK DPA") and the "UK GDPR" (as defined in the UK DPA as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019, and together with the CCPA, Cayman DPA, GDPR and UK DPA, the "Data Protection Legislation"), and any updates of consumer privacy policies and procedures) in electronic form, such as email or a password-protected website maintained by PIMCO or a third party, in lieu of or in addition to the delivery of such information through mail or fax transmission, unless the Subscriber has made a request in writing to the contrary. Please note that email messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems, or may be intercepted, deleted or interfered with without the knowledge of the sender or the intended recipient. None of PALCO, the Manager or the Administrator makes any warranties in relation to these matters. Please note that PALCO, the Manager and the Administrator reserve the right to intercept, monitor and retain email messages to and from their systems as permitted by applicable law. If you have any doubts about the authenticity of an email purportedly sent by PALCO, the Manager or the Administrator, you would be required to contact the purported sender immediately. If the Subscriber consents to the electronic delivery as described above, the Subscriber must notify PALCO in writing if the Subscriber's email address listed herein changes. The Subscriber agrees and acknowledges that none of PALCO, the Manager, the Administrator or their agents or affiliates will incur any liability for any misdirected or intercepted communications, including those sent by email or any other electronic means. Please initial to consent to electronic delivery EMAIL (If blank, the email provided in Section 4 or Section 3.A will be used.)

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (8) POWER OF ATTORNEY By executing this Subscription Agreement and subscribing for Shares, the Subscriber hereby irrevocably makes, constitutes, and appoints the Manager and PIMCO Asset-Based Lending Company LLC with full power of substitution, the true and lawful representatives and attorney-in-fact of, and in the name, place and stead of, such Subscriber with power from time to time to make, execute, sign, acknowledge, swear to verify, deliver, record, file and/or publish (a) the limited liability company agreement of PIMCO Asset-Based Lending Company LLC (as amended, restated, supplemented or otherwise modified from time to time, the "LLC Agreement") and any instrument, document or certificate necessary or appropriate thereto on behalf of such Subscriber; (b) any amendment, restatement or supplement to the LLC Agreement that complies with the provisions of the LLC Agreement; (c) the certificate of formation of PIMCO Asset-Based Lending Company LLC and any amendment thereof required because the LLC Agreement is amended, including, without limitation, an amendment to effectuate any change in the membership of PIMCO Asset-Based Lending Company LLC, the capital contributions of other investors of PIMCO Asset-Based Lending Company LLC, the name of PIMCO Asset-Based Lending Company LLC or the structure of PIMCO Asset-Based Lending Company LLC; and (d) all such other instruments, documents and certificates that, in the opinion of legal counsel to PIMCO Asset-Based Lending Company LLC, may from time to time be required by the laws of the United States, the State of Delaware, the Cayman Islands or any other jurisdiction in which PIMCO Asset-Based Lending Company LLC shall determine to do business, or any political subdivision or agency thereof, or that such legal counsel may deem necessary for PIMCO Asset-Based Lending Company LLC to implement and continue the valid and subsisting existence and business of PIMCO Asset-Based Lending Company LLC in its current form of organization or to effect a change of name of PIMCO Asset-Based Lending Company LLC or to effect the dissolution or winding up, as the case may be, or termination of PIMCO Asset-Based Lending Company LLC. The foregoing power of attorney (i) is intended to secure an interest in property, and the obligation of the Subscriber under this Subscription Agreement, is irrevocable and shall be deemed to be coupled with an interest sufficient in law to support an irrevocable power; (ii) shall not be affected by subsequent death, disability, dissolution, bankruptcy, insolvency or incapacity of the principal Subscriber; and (iii) shall be governed, construed and enforced in accordance with the laws of the State of Delaware. If required, the Subscriber shall execute and deliver to the Manager or PIMCO Asset-Based Lending Company LLC, within five business days after receipt of a request therefor, such further designations, powers of attorney or other instruments as PIMCO shall determine to be necessary for the purposes hereof consistent with the provisions of the LLC Agreement. To the fullest extent permitted by applicable law, the Subscriber hereby waives any and all defenses that may be available to contest, negate or disaffirm the actions of PIMCO Asset-Based Lending Company LLC, PIMCO, the Administrator or their affiliates taken in good faith under this power of attorney. Any attorney-in-fact appointed pursuant to this Section 8 may execute any document on behalf of any or all investors in PIMCO Asset-Based Lending Company LLC without the need to list all of the investors in PIMCO Asset-Based Lending Company LLC. The execution of this power of attorney is not intended to, and does not, revoke any prior powers of attorney.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (9) ANTI-MONEY LAUNDERING (9) ANTI-MONEY LAUNDERING (Cont'd) The Subscriber acknowledges that, due to applicable anti-money laundering and anti-terrorist and proliferation finance and related legislation and regulations ("Applicable AML Laws"), PALCO, the Manager on PALCO's behalf, the Administrator, and/or any of their designees may require further identification information from the Subscriber and, as applicable, its Beneficial Owners3, control persons and/or anyone authorized to give instructions on the Subscriber's behalf, and may also require receipt of the information from the Subscriber's remitting financial institution before the Subscriber's Subscription Agreement can be processed. In addition, the PALCO, the Manager on PALCO's behalf, the Administrator and/or any of their designees may request such information or documentation as is necessary to verify (a) the identity of the Subscriber, its Beneficial Owners, control persons, and/or anyone authorized to give instructions on the Subscriber's behalf; and (b) the source of the Subscriber's wealth and subscription funds. In the event of delay or failure by the Subscriber to produce the requested information (or any additional information or documentation subsequently requested by PALCO, the Administrator, and/or their designees), PALCO or the Administrator may refuse to process a subscription or accept any monies from the Subscriber or process any redemption requests from or pay any distributions to the Subscriber until proper information has been provided. The Subscriber acknowledges and agrees that PALCO's Board of Directors (and each Director), PALCO, the Manager, the Administrator and each of their respective affiliates shall be held harmless and indemnified against any loss arising as a result of a failure to process a subscription or redemption request or pay any distributions if the Subscriber has not provided documentation or information requested or required by PALCO, the Manager on PALCO's behalf, and/or the Administrator to the satisfaction of PALCO, the Manager on PALCO's behalf, and/or the Administrator. The Subscriber also acknowledges and agrees that waiver of any secrecy or privacy rights to which it is otherwise entitled is a condition of PALCO's acceptance of the Subscriber's subscription, to the extent necessary in order for PALCO to satisfy its obligations under Applicable AML Laws or Applicable Sanctions Laws, as defined below. The Subscriber acknowledges and agrees that (i) PALCO is not required to accept the Subscriber's subscription or the subscription of any other person, (ii) all or a portion of the subscription payment of the Subscriber may therefore be returned at any time prior to the sale of shares, and (iii) the offering may be suspended or terminated at any time. The Subscriber acknowledges and agrees that PALCO generally prohibits any investment in PALCO by, on behalf of, or through the following persons, directly or indirectly (each, a "Prohibited Investor"): (a) A person or entity that is subject to economic or trade sanctions administered by the United States (including, but not limited to, the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC") or the U.S. State Department), the UK (including by HM Treasury), the European Union ("EU") and its member states, the United Nations Security Council ("UNSC"), or any other relevant sanctions authority (together with U.S., UK, EU, and UNSC laws, "Applicable Sanctions Laws," and persons or entities sanctioned under such laws, "Sanctioned Persons"); (b) Any entity owned or controlled by a Sanctioned Person; (c) A person or entity that is located, organized or ordinarily resident in a jurisdiction subject to comprehensive sanctions under Applicable Sanctions Laws (as of the time of this agreement, the Crimea, the so-called Luhansk People's Republic and so-called Donetsk People's Republic regions of Ukraine, the non-governmental controlled oblasts of Kherson and Zaporizhzhia, Cuba, Iran, North Korea and Syria) (a "Sanctioned Country"); (d) A person or entity with whom PALCO is otherwise prohibited from dealing under Applicable Sanctions Laws; (e) A Foreign Shell Bank (as defined herein). A "Foreign Shell Bank" means a Foreign Bank (as defined herein) without a physical presence in any country, but does not include a Regulated Affiliate (as defined herein). A "Foreign Bank" means an organization that (a) is organized under the laws of a country outside the United States; (b) engages in the business of banking; (c) is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal banking operations; (d) receives deposits to a substantial extent in the regular course of its business; and (e) has the power to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank. A "Regulated Affiliate" means a Foreign Shell Bank that (a) is an affiliate of a depository institution, credit union, or Foreign Bank that maintains a physical presence in the United States or a foreign country; and (b) is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or Foreign Bank; (f) A person or entity that has been designated by, or is resident in, or organized or chartered under the laws of, a jurisdiction that has been designated as a "primary money laundering concern" by the Secretary of the Treasury under Section 311 of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001 or Section 9714 of the Combatting Russian Money Laundering Act, unless waived by PALCO after conducting enhanced due diligence; (g) A person that appears on a list of known or suspected terrorists designated pursuant to the customer identification program regulations adopted under 31 U.S.C. §5318(l); or (h) A person or entity that has been convicted of or is under investigation for financial crimes, including activity that violates Applicable AML Laws, Applicable Sanctions Laws, or applicable anti-corruption or anti-bribery laws ("Applicable Anti-Corruption Laws"), unless waived by PALCO after conducting enhanced due diligence. The Subscriber represents and warrants that none of the Subscriber nor any person or entity controlling, controlled by, or, to the knowledge of the Subscriber, under common control with, such Subscriber, nor any Beneficial Owner or underlying investor of such Subscriber, is a Prohibited Investor. The Subscriber represents and warrants that none of the funds used by the Subscriber to fund its investment will be derived directly or indirectly from activity that violates Applicable Sanctions Laws or dealings with Sanctioned Persons or Sanctioned Countries. The Subscriber represents and warrants that none of the Subscriber, any Beneficial Owner, underlying investor, or any party acting on behalf of the Subscriber or any Beneficial Owner, has received, made, offered, or promised any unlawful payment or benefit in furtherance of its potential investment in PALCO. The Subscriber represents and warrants that, if the Subscriber is an entity, including a fund-of-funds, trust, pension plan, nominee, or any other entity that is not a natural person, the Subscriber: (a) has adopted policies and procedures designed to comply with Applicable AML Laws and, pursuant to those policies and procedures, it (i) has carried out thorough due diligence (and, as applicable, enhanced due diligence) as to, and has established the identities of, any Beneficial Owner of the Subscriber, (ii) holds the evidence of such identities, (iii) as required or appropriate, has identified the source of funds or source of wealth of any Beneficial Owner, (iv) will maintain all such evidence for the period required by applicable law (and in any event at least ten years from the date of the Subscriber's complete redemption from PALCO), (v) will make such information available to PALCO or any of its designees upon their reasonable request and (vi) monitors for, and reports suspicious activity of, such persons or entities, and complies with relevant transaction and/or currency reporting requirements as required by Applicable AML Laws; (b) will obtain from its underlying investors a waiver of such investors' secrecy and privacy rights as a condition of investment, to the extent necessary in order for the Subscriber and PALCO to satisfy their respective obligations under Applicable AML Laws, and the Subscriber will reject or terminate the investment of any underlying investor who refuses to provide, or attempts to revoke, such waiver; (c) has adopted and adhered to policies and procedures reasonably designed to comply with Applicable Sanctions Laws and Applicable Anti-Corruption Laws, and to identify underlying investors who might be Prohibited Investors; and (d) based on application of its policies and procedures designed to comply with Applicable AML Laws, Anti-Money Laundering Laws, Applicable Anti- Corruption Laws, and Applicable Sanctions Laws, Subscriber has no reason to believe that any underlying investor is a Prohibited Investor or is engaged in suspicious activity by, through or at PALCO. The Subscriber represents and warrants that the money that the Subscriber seeks to invest (a) is not derived from, or related to, money laundering, terrorism, illegal drug activity, or any other activity that is deemed criminal under U.S. or other applicable law; (b) will not cause PALCO, the Manager, the Administrator or any of their respective affiliates to be in violation of Applicable AML Laws, Applicable Sanctions Laws, or Applicable Anti-Corruption Laws; and (c) will not originate from, be routed through, or be transferred from or through an account maintained at a Foreign Shell Bank, an "offshore bank," or a bank organized or chartered under the laws of a Non-Cooperative Jurisdiction or Territory4. The Subscriber represents and warrants that it does not know, or have reason to suspect, that the proceeds of its investment will be used in any manner that would cause PALCO, the Manager, the Administrator or any of their respective affiliates to be in violation of Applicable AML Laws, Applicable Sanctions Laws, or Applicable Anti-Corruption Laws. The Subscriber represents and warrants that it will provide to PALCO, the Manager, and/or the Administrator such information and documentation as PALCO, the Administrator, the Manager or any of their affiliates may require to comply with Applicable AML Laws, Applicable Sanctions Laws, and/or Applicable Anti-Corruption Laws. The representations and warranties set forth in this Section 9 are ongoing and shall be deemed repeated at the time of each subscription and repurchase. The Subscriber agrees to notify PALCO and/or the Administrator immediately of any change in information affecting the representations and covenants in this Section 9. The Subscriber acknowledges that (a) if the Subscriber is, or PALCO, Manager or the Administrator reasonably believes that the Subscriber or any of its Beneficial Owners, underlying investors or control persons is, a Prohibited Investor, (b) the foregoing representations in this Section 9 are incorrect, (c) if otherwise required by applicable law or regulation related to money laundering, economic sanctions, and similar activities, or (d) if PALCO, the Manager and/or the Administrator deems it reasonably necessary for the commercial best interests of other investors in PALCO, the Manager and/or the Administrator may, in their sole discretion, undertake appropriate actions to ensure compliance with applicable law or regulations or commercial best interests of other investors, including but not limited to freezing, segregating or redeeming the Subscriber's subscription in PALCO. Freezing the Subscriber's subscription in PALCO may mean that the Subscriber's subscription cannot be redeemed. In the event that a redemption notice has been or is submitted in relation to frozen assets, either prior to or after assets are required by applicable law or regulations to be frozen, but the redemption has not yet completed, PALCO, the Manager and/or the Administrator may, in their sole discretion, disregard the redemption notice in question. PALCO, the Manager, and/or the Administrator shall be under no obligation to communicate with a Prohibited Investor in relation to the appropriate actions taken. In this event, the Subscriber shall have no claim against PALCO, the Manager, the Administrator, or any of their respective affiliates, for any form of damages that result from any of the aforementioned actions. The Subscriber represents and covenants that if it is or becomes, or any of its Beneficial Owners are or become, a Senior Foreign Political Figure5 or Politically Exposed Person6, it has provided or will provide notice of such status to PALCO, the Manager, and/or the Administrator and will provide any information requested by PALCO, the Manager, the Administrator, and/or their designees to conduct any enhanced due diligence as may be appropriate in PALCO's, the Manager's, and/or the Administrator's sole discretion. The Subscriber likewise represents and covenants that if it is investing on behalf of others, it will conduct or has conducted enhanced due diligence on underlying investors who are or become Senior Foreign Political Figures or Politically Exposed Persons to confirm that such investors' source of wealth or funds is not derived from corruption or other illegal activity. The Subscriber is advised that PALCO could be requested or required to disclose confidential information about the Subscriber and, if applicable, any of the Subscriber's Beneficial Owners, underlying investors, control persons and/or persons authorized to give instructions on the Subscriber's behalf, to governmental, regulatory or other authorities or to financial intermediaries if PALCO, Manager and/or the Administrator, in their sole discretion, determine that it is in their best interests in light of relevant laws or regulations concerning money laundering, economic sanctions, and similar activities. Notwithstanding any other provision of this Subscription Agreement to the contrary, PALCO, and the Manager, in its own name and on behalf of PALCO, shall be authorized, without the consent of any person or entity, including the undersigned, to take such action as it determines to be necessary or advisable to comply, or to cause PALCO to comply, with any anti-money laundering, economic sanctions, or anti-terrorist laws, rules, regulations, directives or special measures. Subscriber represents and warrants that it has read and completed "Appendix C: Information Regarding Applicability of Rule 506(d)" and "Appendix D: AML Subscriber Identification Questionnaire" herein and the information supplied is true and correct and may be relied upon by PALCO. Subscriber represents and warrants that neither investor nor (if investor is an entity) any shareholders, partners or other holders of equity or beneficial interests (including any person reasonably known to be controlling investor) is: a person or entity (a) whose name appears on the List of Specially Designated Nationals and Blocked Persons administered by the OFAC of the U.S. Department of Treasury or any similar list of sanctioned persons maintained by the United Nations, EU, or UK, as such lists may be amended from time to time; (b) who is incorporated, ordinarily resident, or located in a country or territory subject to comprehensive sanctions (at the time of this agreement the Crimea, the so-called Luhansk People's Republic and so-called Donetsk People's Republic regions of Ukraine, the non-governmental controlled oblasts of Kherson and Zaporizhzhia, Cuba, Iran, North Korea, and Syria); or (c) with whom dealings are restricted, prohibited, or sanctionable pursuant to applicable sanctions, including the sanctions programs administered by OFAC. Subscriber represents and warrants that (a) the amounts contributed by investor to PALCO were not and are not directly or indirectly derived from activities that may contravene federal, state or international laws and regulations, including anti-money laundering laws and regulations; (b) no contribution by the you to PALCO will result in a violation by PALCO or the Manager of any U.S. federal or any state or non-U.S. laws and regulations, including anti-money laundering, economic sanctions, or anti-terrorist laws and regulations, and (c) none of the proceeds from investor's investment in PALCO will be used to finance any activities that contravene laws or regulations or in any other manner that would cause PALCO or the Manager to be in violation of laws or regulations. (10) GOVERNING LAW This Subscription Agreement will be governed by and construed in accordance with the laws of the State of Delaware (without giving effect to any choice of law or conflict of law rules or provisions that would cause the application of the laws of any jurisdiction other than the State of Delaware). (11) ENTIRE AGREEMENT This Subscription Agreement, the LLC Agreement and the other agreements or documents referred to herein or in the LLC Agreement contain the entire agreement of the parties hereto or therein with respect to the subject matter hereof and thereof, and there are no representations, covenants or other agreements except as set forth herein or therein. (12) SUBSCRIBER SIGNATURES PIMCO Asset-Based Lending Company LLC is required by law to obtain, verify and record certain personal information from you or persons on your behalf in order to establish the account. Required information includes name, date of birth, permanent residential address and social security/ taxpayer identification number. We may also ask to see other identifying documents. If you do not provide the information, PIMCO Asset-Based Lending Company LLC may not be able to open your account. By signing this Subscription Agreement, you agree to provide this information and confirm that this information is true and correct. If we are unable to verify your identity, or that of another person(s) authorized to act on your behalf, or if we believe we have identified potentially criminal activity, we reserve the right to take action as we deem appropriate which may include closing your account. The undersigned's signature pages to this Subscription Agreement shall also constitute a counterpart signature page to the LLC Agreement upon acceptance thereof by PALCO. Please separately initial each of the representations below. Except in the case of fiduciary accounts, you may not grant any person a power of attorney to make the representations on your behalf. In order to induce PIMCO Asset-Based Lending Company LLC to accept this subscription, I hereby represent and warrant to you as follows: I have received a copy of the PPM. INVESTOR CO-INVESTOR INITIALS INITIALS I am a non-"U.S. Person" as defined in U.S. Securities Act of 1933, as amended (the "Securities Act") and an "accredited investor" as defined in Rule 501 promulgated under Regulation D under the Securities Act. All investors must complete the questionnaires in Appendices A and D INITIALS INITIALS I acknowledge that there is no public market for the Shares and, thus, my investment in Shares is not liquid. INITIALS INITIALS I acknowledge that the Shares have not been registered and are not expected to be registered under the laws of any country or jurisdiction outside of the United States except as otherwise described in the PPM. INITIALS INITIALS I am purchasing the Shares for my own account. INITIALS INITIALS I understand that the transaction price per Share at which my investment will be executed will be made available on PIMCO Asset-Based Lending Company LLC's website at [www.pimco.com/palcoseriesi/www.pimco.com/palcoseriesii]. INITIALS INITIALS I understand that I am not committed to purchase Shares at the time my subscription order is submitted and I may cancel my subscription at any time before five business days prior to the last business day of the month. I understand that I may withdraw my purchase request by notifying the transfer agent, through my financial intermediary or directly on PIMCO Asset-Based Lending Company LLC's toll-free, automated telephone line, (844) 705-0386. INITIALS INITIALS I am a benefit plan investor within the meaning of Section 3(42) of the Employee Retirement Income Security Act of 1974 ("ERISA").7 (Initial ONLY if applicable) INITIALS INITIALS I declare that the information supplied in this Subscription Agreement (including, without limitation, Appendices) is true and correct and may be relied upon by PIMCO Asset-Based Lending Company LLC. I acknowledge that the Broker-Dealer/Registered Representative (Broker-Dealer/Registered Representative of record) and its designated clearing agent, if any, will have full access to my account information, including the number of shares I own, tax information (including tax documents) and redemption information. Subscriber may change the Broker-Dealer/Registered Representative of record at any time by contacting PIMCO Asset-Based Lending Company LLC at the number indicated below. ERISA INVESTORS If I am, or am investing on behalf of, any plan that is subject to Title I of ERISA, Section 4975 of the U.S. Internal Revenue Code of 1986, as amended (the "Code") or any other U.S. or non-U.S. federal, state, local or other laws or regulations that are similar to the fiduciary responsibility or prohibited transaction provisions of Title I of ERISA or the Code (collectively, "Other Plan Laws"): (1) I represent and warrant that my acquisition and holding of the Shares will not violate or otherwise result in a non-exempt prohibited transaction under ERISA, the Code or a violation of, or otherwise subject PALCO or PIMCO to, any applicable Other Plan Law. (2) I acknowledge and agree that I have neither sought, nor received, any advice, including, without limitation, in a fiduciary capacity, from PIMCO in connection with the purchase and holding of the Shares. (3) I have independently determined that the purchase and holding of the Shares is in accordance with the terms of my governing instruments, if any, and complies with all applicable requirements of ERISA, the Code and any applicable Other Plan Law.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (13a) REGISTERED REPRESENTATIVE (Please complete ONLY if you are a Registered Representative otherwise skip to Section 13b.) BROKER-DEALER (Required information for sales made directly through a Broker-Dealer. If the shares are being purchased through an RIA, please complete Section 13b instead.) Please note that unless previously agreed to in writing by PALCO, all sales of securities must be made through a Broker-Dealer or a Registered Investment Adviser firm ("RIA"). This Section 13a must be completed for shares being purchased directly through a Broker-Dealer. If the shares are being purchased through an RIA, please complete Section 13b of this Subscription Agreement instead. The Registered Representative must sign below to complete the order. Registered Representative hereby warrants that he/she is duly licensed and may lawfully sell shares in the state designated as the investor's legal residence. BROKER-DEALER REGISTERED REP ADVISOR MAILING ADDRESS CITY STATE ZIP FIRM CRD NUMBER REP/RIA CRD NUMBER TELEPHONE NUMBER E-MAIL ADDRESS FAX NUMBER OPERATIONS CONTACT NAME OPERATIONS CONTACT E-MAIL ADDRESS The undersigned confirm(s), which confirmation is made on behalf of the Broker-Dealer with respect to sales of securities made through a Broker-Dealer, that they (i) have reasonable grounds to believe that the information and representations concerning the investor identified herein are true, correct and complete in all respects; (ii) have discussed such investor's prospective purchase of Shares with such investor; (iii) have advised such investor of all pertinent facts with regard to the lack of liquidity and marketability of the Shares; (iv) have delivered or made available the PPM to such investor; (v) have reasonable grounds to believe that the investor is purchasing these Shares for his or her own account; (vi) have reasonable grounds to believe that the purchase of Shares is a suitable investment for such investor, that such investor meets the suitability standards applicable to such investor set forth in the PPM and that such investor is in a financial position to enable such investor to realize the benefits of such an investment and to suffer any loss that may occur with respect thereto; and (vii) have advised such investor that the Shares have not been registered and are not expected to be registered under the laws of any country or jurisdiction outside of the United States except as otherwise described in the PPM. The undersigned Registered Representative represents and certifies that, if the investor is a "retail customer" as defined in the Securities Exchange Act of 1934 (the "Exchange Act") Rule 15l-1 ("Regulation Best Interest"), (i) the undersigned has a reasonable basis to believe that (a) a purchase of Shares would be in the best interest of the investor based upon the investor's investment profile and the potential risks, rewards, and costs associated with such an investment and (b)(i) the undersigned has not placed its interests or those of the Registered Representative ahead of the interest of the investor in recommending such investment and (ii) undersigned and the Registered Representative have complied with any applicable enhanced standard of conduct, including but not limited to, the other requirements of Regulation Best Interest in relation to the proposed purchase of Shares. The undersigned Registered Representative further represents and certifies that, in connection with this subscription for Shares, he or she has complied with and has followed all applicable policies and procedures under his or her firm's existing anti-money laundering program and customer identification program, including applicable document/information retention requirements. The undersigned Registered Representative further represents and certifies that, upon request from PALCO or an affiliate, such Registered Representative will provide PALCO with identification documentation and other information about the investor collected pursuant to these policies and procedures. During the life of the investment, but no more than annually, the undersigned Registered Representative agrees to provide, upon request from PALCO or an affiliate, a verification of continued compliance with this section 13a. THIS SUBSCRIPTION AGREEMENT AND ALL RIGHTS HEREUNDER SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. REGISTERED REP DATE BRANCH MANAGER SIGNATURE (If required by Broker-Dealer) DATE (13b) INVESTMENT ADVISOR REPRESENTATIVE/ RIA INFORMATION (Required information for sales made through an RIA. If the shares are being purchased directly through a Broker-Dealer, please complete Section 13a instead.) The Investment Advisor Representative ("Representative"), on behalf of the Representative and the RIA, must sign below to complete the order. A principal or other authorized signatory of the RIA must also sign if required by the RIA. Representative hereby warrants that Representative is duly licensed and authorized to execute this Subscription Agreement on behalf of Representative and the RIA, and may lawfully provide investment advice regarding the shares in the state designated as the investor's legal residence. RIA FIRM INVESTMENT ADVISOR REPRESENTATIVE NAME MAILING ADDRESS CITY STATE ZIP IARD NUMBER (if known) RIA NUMBER TELEPHONE NUMBER E-MAIL ADDRESS FAX NUMBER OPERATIONS CONTACT NAME OPERATIONS CONTACT E-MAIL ADDRESS

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (13b) INVESTMENT ADVISOR REPRESENTATIVE/ RIA INFORMATION (Required information for sales made through an RIA. If the shares are being purchased directly through a Broker-Dealer, please complete Section 13a instead.) (Continued) The undersigned confirm by their signature, on behalf of the Representative and RIA, that Representative and RIA: (i) have reasonable grounds to believe that the information and representations concerning the investor identified herein are true, correct and complete in all respects; (ii) have verified, if other than individual ownership, that the individual executing on behalf of the investor is properly authorized and identified; (iii) have discussed such investor's prospective purchase of shares with such investor; and (iv) have advised such investor of all pertinent facts with regard to the liquidity and marketability of the shares. The Representative and RIA are not authorized or permitted to give, and represents that they have not given to a prospective investor, any information or any representation concerning the shares except (i) as set forth in the PPM and (ii) any sales literature which has been approved in advance in writing by PALCO (such information, the "Supplemental Information"). The Representative represents that Representative has not used or will not use any unapproved materials related to PALCO. The Representative has delivered a copy of the PPM, to each investor to whom an offer is made prior to or simultaneously with the execution of this Subscription Agreement. The Representative and RIA represent that it has not shown or given to the investor any material marked "RIA only," "For Financial Advisor Use Only" or otherwise bearing a legend denoting that it is not to be shared with or given to prospective investors. The Representative and RIA hereby agree to, and shall, indemnify and hold harmless PALCO, its respective affiliates, and any directors, officers, partners, employees or agents of the foregoing (collectively, "PALCO Affiliates"), against any and all direct or third-party claims, losses, damages, or liabilities, joint or several, including but not limited to any claims, losses, damages, or liabilities relating to or regarding the suitability of the investment for the investor, whether or not the investment was in the best interest of the investor, and/or any claims relating to statements made by the RIA to the investor with respect to the purchase of shares or otherwise with respect to PALCO (including any investigative, legal, and other costs and expenses reasonably incurred in connection with, and any amounts paid in settlement of any action, suit, proceeding, or legislative or regulatory inquiry) (collectively "Claims"), for which any of the PALCO Affiliates may become subject, to the extent that such Claims arise out of or are based upon: (i) the Representative or RIA's fraud, willful default, or negligence; or (ii) the Representative or RIA's (a) violation of applicable law or regulation, (b) misrepresentation to the investor(s), (c) breach of any warranty or representation of the Representative or RIA herein, or (d) failure to fulfill any covenant or agreement of the Representative or RIA contained herein. The Representative and RIA shall not be liable under the indemnification provisions of this Subscription Agreement with respect to a party or other person entitled to indemnification hereunder (the "Indemnified Party") unless such Indemnified Party shall have notified the Representative and RIA in writing within a reasonable time after notice giving information of the nature of the claim shall have been received by such Indemnified Party, but failure to notify the Representative or RIA of any such claim shall not relieve the Representative or RIA from any liability that it may have to the Indemnified Party against whom such claim is made, except to the extent that the failure to notify results in the failure of actual notice to the Representative or RIA and such indemnifying party is materially damaged by being unable effectively to defend such claim solely as a result of failure to give or delay in giving such notice. In case an action is brought directly against the Indemnified Party, or the Indemnified Party becomes directly involved in the action, the Representative or RIA will be entitled to participate, at their own expense, in the defense thereof. The Representative and RIA also shall be entitled to assume the defense thereof, with counsel satisfactory to the Indemnified Party in its reasonable judgment. After notice from the Representative or RIA to the Indemnified Party of the Representative's or RIA's election to assume the defense thereof, the Indemnified Party shall bear the fees and expenses of any additional counsel retained by it, and the Representative or RIA will not be liable to such party under this Subscription Agreement for any legal or other expenses subsequently incurred by such party independently in connection with the defense thereof other than reasonable costs of investigation, unless (i) the Representative or RIA and the Indemnified Party 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 the RIA and the Indemnified Party and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between or among them. Neither the Representative nor the RIA shall be liable for any settlement of any proceeding effected without its written consent but if settled with such consent, the Representative and RIA agree to indemnify the Indemnified Party from and against any loss or liability by reason of such settlement. The RIA may settle any Claim covered by indemnification hereunder, provided such settlement involves solely the payment of money and a complete and total release from said Claim. A successor by law of the Indemnified Parties shall be entitled to the benefits of the indemnification contained in this Subscription Agreement. The RIA represents that it is properly licensed and presently registered as an investment adviser under the Advisers Act, and has complied with registration or notice filing requirements of the appropriate regulatory agency of each state in which the RIA has clients or is exempt from such registration requirements. The Representative and RIA represent that each is in compliance with all the applicable requirements imposed upon it under (a) the Securities Act, the Exchange Act, and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") promulgated under both such acts, (b) all applicable state securities laws and regulations as from time to time in effect, (c) any other state and federal laws and regulations applicable to the activities of the Representative or RIA pursuant to this Subscription Agreement, including without limitation the privacy standards and requirements of state and federal laws, including the Gramm-Leach-Bliley Act of 1999, and the laws governing money laundering abatement and anti-terrorist financing efforts, including the applicable rules of the SEC; and d) this Subscription Agreement and the PPM. The RIA agrees to comply with the record-keeping requirements imposed by federal and state laws, including those records related to suitability and to make the suitability records available to PALCO upon request. The Representative and RIA represent that the investor meets the suitability and financial qualifications set forth in Section 12 and Appendix A of this Subscription Agreement and the PPM, and is a person who is eligible to purchase the applicable type of shares as described in the PPM. The Representative and RIA have reasonable grounds to believe that the purchase of shares by the investor is a suitable and appropriate investment for such investor. In making this determination, the RIA has reasonable grounds to believe that the investor: (a) can reasonably benefit from an investment in PALCO based on the prospective investor's overall investment objectives and portfolio structure; (b) is able to bear the economic risk of the investment based on the prospective investor's overall financial situation; and (c) has apparent understanding of (1) the fundamental risks of the investment, (2) the risk that the investor may lose the entire investment, (3) the lack of liquidity of the shares, (4) the restrictions on transferability of the shares, (5) the tax consequences of the investment, and (6) the background and qualifications of PIMCO. The Representative and RIA have made this determination on the basis of information it has obtained from the investor, including at least the age, investment objectives, investment experiences, income, net worth, financial situation, and other investments of the prospective investor, as well as any other pertinent factors. The Representative and RIA represent further that they have conducted, or have directed an agent or the account custodian to conduct on the RIA's behalf, all necessary due diligence and "know your customer" checks on the investor in order to comply with any and all applicable laws, rules, and regulations including, but not limited to, the USA Patriot Act of 2001, the Bank Secrecy Act of 1970, as amended, regulations or orders issued by OFAC, and any other applicable anti-money laundering laws, rules, or regulations. With respect to any use by the Representative and RIA of electronic delivery of the PPM and Supplemental Information and electronic signature of the Subscription Agreement, the Representative and RIA represent and warrant that each will comply with (a) all applicable rules, regulations and guidelines issued by the SEC and any other applicable laws or regulations and guidelines; and (b) the Electronic Signatures in the Global and National Commerce Act and the Uniform Electronic Transactions Act, to the extent applicable, as adopted in each applicable jurisdiction and any other applicable laws. The undersigned represents that the shares will be purchased through the RIA listed above. RIA and PALCO acknowledge that if RIA and PALCO have executed an RIA selected dealer (or other comparable) agreement for the offering of shares of PALCO, then such agreement shall supersede any conflicting representations contained herein in this Section 13b. THIS SUBSCRIPTION AGREEMENT AND ALL RIGHTS HEREUNDER SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE. INVESTMENT ADVISOR REPRESENTATIVE SIGNATURE DATE PRINCIPAL OR OTHER RIA AUTHORIZED SIGNATORY SIGNATURE (if required by RIA) (14) MISCELLANEOUS If investors participating in the Distribution Reinvestment Plan or making subsequent purchases of Shares of PIMCO Asset-Based Lending Company LLC experience a material adverse change in their financial condition or can no longer make the representations or warranties set forth in Section 12 above, they are asked to promptly notify PIMCO Asset-Based Lending Company LLC and the Broker-Dealer in writing. The Broker-Dealer may notify PIMCO Asset-Based Lending Company LLC if an investor participating in the Distribution Reinvestment Plan can no longer make the representations or warranties set forth in Section 12 above, and PIMCO Asset-Based Lending Company LLC may rely on such notification to terminate such investor's participation in the Distribution Reinvestment Plan. All items on this Subscription Agreement must be completed in order for your subscription to be processed. For your subscription request to be accepted for any given month, the completed and executed Subscription Agreement and the full subscription amount must be received by PALCO or its designee no later than 4 PM EST five (5) business days prior to the first calendar day of the applicable month (unless waived). Upon acceptance of your subscription request, you will receive a written confirmation of your purchase. Subscribers are encouraged to read the PPM in its entirety for a complete explanation of an investment in the Shares of PIMCO Asset-Based Lending Company LLC.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors Return the completed Subscription Agreement to: Regular Mail To: PIMCO Asset-Based Lending Company LLC—Series [I/II] 650 Newport Center Drive, Newport Beach, CA 92660 Overnight To: PIMCO Asset-Based Lending Company LLC—Series [I/II] 650 Newport Center Drive, Newport Beach, CA 92660 PIMCO Asset-Based Lending Company LLC—Series [I/II] Investor Relations: (212) 776-1689 Email: AltsInvestorServicing@pimco.com Submit the Investment Amount provided in Section I: By Mail — Attach a check made payable to By Wire — Bank Name: State Street Bank and Trust Company Account Name: Address: John Adams Building, 1776 Heritage Dr, North Quincy, MA 02171 ABA Routing Number: Demand Deposit Account Number: Please request when sending a wire that the wire reference the subscriber's name in order to assure that the wire is credited to the proper account.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors The Subscriber qualifies as an "accredited investor" within the meaning of Regulation D under the Securities Act. The Subscriber is eligible to invest in PALCO as an accredited investor if the Subscriber is able to affirmatively check one of the boxes below (please check each box that accurately describes the Subscriber): (a) The Subscriber is a natural person who had an income in excess of $200,000 in each of the two most recent years (or joint income with the Subscriber's spouse or "spousal equivalent"8 in excess of $300,000 in each of those years) and has a reasonable expectation of reaching the same income level in the current year. (b) The Subscriber is a natural person who has a net worth (or joint net worth with the Subscriber's spouse or spousal equivalent) in excess of $1,000,000.9 NOTE: When calculating net worth, •exclude from the calculation the estimated fair market value of the Subscriber's primary residence at the time of the sale of the Shares; •exclude from the calculation all indebtedness (e.g., a mortgage or home equity loan or line of credit) secured by the Subscriber's primary residence, up to the estimated fair market value of such primary residence at the time of the sale of the Shares; and •include in the calculation as a liability the indebtedness secured by the Subscriber's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of the Shares. NOTE: When calculating joint net worth, •can aggregate the net worth of the Subscriber and the Subscriber's spouse or spousal equivalent; •to include assets in the calculation, the assets need not be held jointly; and •• to rely on this joint net worth standard, securities need not be purchased jointly. (c) The Subscriber is a natural person holding in good standing the General Securities Representative license (Series 7), the Investment Adviser Representative license (Series 65), the Private Securities Offerings Representative license (Series 82), and/or any other professional certifications or designations or credentials from an accredited educational institution that the U.S. Securities and Exchange Commission ("SEC") has designated as qualifying an individual for accredited investor status.10 (d) The Subscriber is a "family office,"11 as defined under the Advisers Act, (x) with assets under management in excess of $5,000,000; (y) that was not formed for the specific purpose of acquiring the securities offered, and (z) whose subscription in PALCO is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment and does not rely on PALCO or its affiliates for a recommendation. (e) The Subscriber is a "family client," as defined under the Advisers Act, that meets the requirements (x), (y), and (z) set forth in paragraph (2)(d) above, whose subscription in PALCO is directed by such "family office" pursuant to the Advisers Act. (f) The Subscriber is a trust (e.g., a personal trust) (i) with total assets in excess of $5,000,000, (ii) that was not formed for the specific purpose of investing in PALCO, and (iii) whose selected person responsible for directing the investment of assets of the trust in PALCO has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of an investment in PALCO. (g) The Subscriber is an entity with total assets in excess of $5,000,000 which was not formed for the specific purpose of investing in PALCO and which is one of the following: (i) a corporation; or (ii) a partnership; or (iii) a limited liability company; or (iv) a Massachusetts or similar business trust; or (v) an organization described in Section 501(c)(3) of the Code. (h) The Subscriber is a revocable trust which may be amended or revoked at any time by the grantors thereof, and of which all of the grantors are "accredited investors" because each grantor is an individual who (i) has a net worth (or joint net worth with the Subscriber's spouse or spousal equivalent) in excess of $1,000,000 (calculated in the manner set forth in paragraph (2)(b) above); (ii) had individual income in excess of $200,000 in each of the two most recent years and expects to have individual income in excess of $200,000 in the current year; or (iii) had joint income together with the Subscriber's spouse or spousal equivalent in excess of $300,000 in each of the two most recent years and expects to have joint income in excess of $300,000 in the current year.12 (i) The Subscriber is licensed, or subject to supervision, by U.S. federal or state examining authorities as a "bank" (as defined in Section 3(a)(2) of the Securities Act), a "savings and loan association" (or other institution described in Section 3(a)(5)(A) of the Securities Act) or an "insurance company" (as defined in Section 2(a)(13) of the Securities Act), or is an account for which a bank or savings and loan association is subscribing in a fiduciary capacity. (j) The Subscriber is registered with the SEC as a broker or dealer under the Exchange Act, or is an investment company registered under the Investment Company Act, or has elected to be treated or qualifies as a "business development company" (within the meaning of Section 2(a)(48) of the Investment Company Act). (k) The Subscriber is an investment adviser registered pursuant to Section 203 of the Advisers Act or registered pursuant to the laws of a state. (l) The Subscriber is an investment adviser relying on the exemption from registering with the SEC under Section 203(l) or (m) of the Advisers Act. (m) The Subscriber is a Small Business Investment Company ("SBIC") licensed by the Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958, as amended. (n) The Subscriber is a Rural Business Investment Company ("RBIC")13 as defined in Section 384A of the Consolidated Farm and Rural Development Act, as amended.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors) The Subscriber is a private business development company as defined in Section 202(a)(22) of the Advisers Act. (p) The Subscriber is an employee benefit plan (other than a participant-directed plan) established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, with total assets in excess of $5,000,000. (q) The Subscriber is an employee benefit plan within the meaning of ERISA, (i) which has total assets in excess of $5,000,000, (ii) for which investment decisions are made by a plan fiduciary which is a bank, savings and loan association, insurance company, or registered investment adviser, or (iii) if a self-directed plan, in which investment decisions are made solely by persons that are "accredited investors." (r) The Subscriber is an entity in which all of the equity owners are directly or indirectly persons described in this Appendix A.14 (s) The Subscriber is any entity of a type not listed in (f) through (r) above, (x) that owns "investments," as defined in Rule 2a51-1(b) under the Investment Company Act, (y) in excess of $5,000,000 and (z) that was not formed for the specific purpose of acquiring the securities offered.15

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors INSTITUTIONAL SUITABILITY CERTIFICATE AFFIRMATIVE INDICATION OF EXERCISE OF INDEPENDENT JUDGMENT (Pursuant to FINRA Rule 2111) 1 Please fill out this form, sign, and reply via email: PALCOTA_INQ@statestreet.com In connection with any recommended2 transaction or investment strategy by a registered broker-dealer, the undersigned acknowledges on behalf of the Institution named below that: I. It is an Institutional Account as defined in FINRA Rule 4512(c)3 or is a "family office" (as defined in Rule 202(a)(11)(G)-1 under the Advisers Act) with assets under management in excess of $50,000,000 or more, not formed for the specific purpose of acquiring the Shares offered, and whose purchase of the Shares is directed by one or more experienced securities or financial services professionals who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the purchase of the Shares and does not rely on PALCO or its affiliates for a recommendation4; II. It (1) is capable of evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities; and (2) will exercise independent judgment in evaluating the recommendations of any broker-dealer or its associated persons, unless it has otherwise notified the broker-dealer in writing; III. It will notify PIMCO if anything in this Certificate ceases to be true; IV. This Certificate and the information contained herein may be shared with broker-dealers or third parties, including via a secure database or electronic platform established by PIMCO; and V. He or she is authorized to sign on behalf of the Institutional Account named below. NOTE: This Certificate shall apply with respect to all recommended transactions and investment strategies involving securities that are entered into by the "Institutional Account" named in this Certificate, whether for the account of such Institutional Account or for the account of any beneficial owner that has delegated decision making authority to such Institutional Account. Institutional Account Name: Address, City, State, Zip: Name of Authorized Signatory: U.S. Tax ID/EIN (if applicable): Title of Authorized Signatory: Telephone: Email Address: Signature of Authorized Signatory: Date: Name of Contact at Institution (for questions and updates) Telephone: Email Address: 1 Available at http://www.finra.org/Industry/Regulation/FINRARules/. 2 As defined in FINRA Rules. 3 The term "Institutional Account" means the account of: (1) a bank, savings and loan association, insurance company or registered investment company; (2) an investment adviser registered either with the SEC under Section 203 of the Investment Advisers Act or with a state securities commission (or any agency or office performing like functions); or (3) any other person (whether a natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million as of the date of this Certificate (whether such assets are invested for such person's own account or under management for the account of others). 4 "Family offices" that meet these criteria are not considered "retail customers" for the purposes of the SEC's Regulation Best Interest and Form CRS under the Exchange Act, as amended.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors Information Regarding Applicability of Rule 506(d) Rule 506(d) Representations The Subscriber should answer each of the statements below in respect of the Beneficial Owner and any other person who could be deemed to be a "beneficial owner" of the Shares held by the Beneficial Owner (collectively with the Beneficial Owner, the "Covered Party"). The Subscriber represents and warrants: True False The Covered Party has not been convicted of any felony or misdemeanor: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities. The Covered Party is not subject to any order, judgment or decree of any court of competent jurisdiction that restrains or enjoins it from engaging or continuing to engage in any conduct or practice: (i) in connection with the purchase or sale of any security; (ii) involving the making of any false filing with the SEC; or (iii) arising out of the conduct of the business of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities. The Covered Party is not subject to a final order of a state securities commission (or an agency or officer of a state performing like functions); a state authority that supervises or examines banks, savings associations, or credit unions; a state insurance commission (or an agency or officer of a state performing like functions); an appropriate federal banking agency; the CFTC; or the National Credit Union Administration that: (i) bars it from association with an entity regulated by such commission, authority, agency, or officer; (ii) bars it from engaging in the business of securities, insurance or banking; (iii) bars it from engaging in savings association or credit union activities; or (iv) constitutes a final order based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct. The Covered Party is not subject to an order of the SEC entered pursuant to Section 15(b) or 15B(c) of the Exchange Act (15 U.S.C. 78o(b) or 78o-4(c)) or Section 203(e) or (f) of the Advisers Act (15 U.S.C. 80b-3(e) or (f)) that: (i) suspends or revokes its registration as a broker, dealer, municipal securities dealer or investment adviser; (ii) places limitations on its activities, functions or operations; or (iii) bars it from being associated with any entity or from participating in the offering of any penny stock. The Covered Party is not subject to any order of the SEC that orders it to cease and desist from committing or causing a violation or future violation of: (i) any scienter-based anti-fraud provision of the federal securities laws or any other rule or regulation thereunder;17 or (ii) Section 5 of the Securities Act (15 U.S.C. 77e). The Covered Party is not suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities association for any act or omission to act constituting conduct inconsistent with just and equitable principles of trade. The Covered Party has not filed (as a registrant or issuer), and was not, and was not named as an underwriter in, any registration statement or Regulation A offering statement filed with the SEC that was the subject of a refusal order, stop order, or order suspending the Regulation A exemption, and is not the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued. The Covered Party is not subject to a U.S. Postal Service false representation order entered within five years of the date of this Subscription Agreement and the Covered Party is not subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the U.S. Postal Service to constitute a scheme or device for obtaining money or property by means of false representations. There is no action, suit, claim, proceeding, arbitration, inquiry or investigation pending or, to the Subscriber's knowledge, threatened against the Covered Party, which if adversely deter-mined, would give rise to any of the events described in (a) through (h) above. If the Subscriber responded "False" to any question above, please provide a description of the event, including the date or dates that each conviction, order, judgment, decree, suspension, expulsion or bar occurred or was issued, or a description of the status of any action, suit, claim, proceeding, arbitration, inquiry or investigation. Please also include any additional relevant in-formation as attachments to this Subscription Agreement. The representations and warranties in clauses (a) through (i) above shall be true and correct at all times while the Subscriber holds Shares in PALCO, and, notwithstanding any other provisions of this Subscription Agreement, if such representations and warranties are no longer true and correct then the Subscriber shall immediately notify PIMCO in 16 "Beneficial owner" of a security under the Rule 506(d) of the Securities Act has the same meaning as it does under Rule 13d-3 of the Exchange Act, which defines it to include any person who directly or indirectly has or shares voting power (including the power to vote, or to direct the voting of, such security) and/or investment power (including the power to dispose, or to direct the disposition of, such security). 17 Scienter-based anti-fraud provisions of the federal securities laws include section 17(a)(1) of the Securities Act (15 U.S.C. 77q(a)(1)), Section 10(b) of the Exchange Act (15 U.S.C. 78j(b)) and 17 CFR 240.10b-5, Section 15(c)(1) of the Exchange Act (15 U.S.C. 78o(c)(1)) and Section 206(1) of the Advisers Act (15 U.S.C. 80b-6(1)), or any other rule or regulation thereunder. 1 An "Institutional Account" means the account of: (a) a bank, savings and loan association, insurance company or registered investment company; (b) an investment adviser registered either with the U.S. Securities and Exchange Commission under Section 203 of the U.S. Investment Advisers Act of 1940, as amended (the "Advisers Act"), or with a state securities commission (or any agency or office performing like functions); or (c) any other person (whether an individual / natural person, corporation, partnership, trust or otherwise) with total assets of at least $50 million as of the date the subscriber executes this Subscription Agreement (whether such assets are invested for such person's own account or under management for the account of others). 2 Immediate Family Member" means (1) an employee's spouse; (2) any of the following persons sharing the same household with the employee (which does not include temporary house guests): a person's child, stepchild, grandchild, parent, stepparent, grandparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, legal guardian, adoptive relative, or domestic partner; (3) any person sharing the same household with the employee (which does not include temporary house guests) that holds an account in which the employee is a joint owner or listed as a beneficiary; or (4) any person sharing the same household with the employee in which the employee contributes to the maintenance of the household and material financial support of such person. 3 "Beneficial Owner" shall have the meaning given it under Applicable AML Laws, and such term shall have such meaning when used in this Subscription Agreement in the context of anti-money laundering and sanctions representations, warranties, covenants, acknowledgments, or when otherwise required. 4 "Non-Cooperative Jurisdiction or Territory" means any non-U.S. country or territory that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization concurs. 5 "Senior Foreign Political Figure" means (a) a current or former senior official in the executive, legislative, administrative, military or judicial branches of a non-U.S. government (whether elected or not), a current or former senior official of a major non-U.S. political party, or a current or former senior executive of a non-U.S. government-owned commercial enterprise, (b) a corporation, business, or other entity that has been formed by, or for the benefit of, any such individual, (c) an Immediate Family Member of any such individual, and (d) a person who is widely and publicly known (or is actually known) to be a Close Associate of such individual. For purposes of this definition, a "senior official" or "senior executive" means an individual with substantial authority over policy, operations, or the use of government-owned resources. "Close Associate" means, with respect to a Senior Foreign Political Figure or a Politically Exposed Person, a person who is widely and publicly known internationally (or actually known to the Subscriber) to maintain an unusually close relationship with the Senior Foreign Political Figure or Politically Exposed Person, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior Foreign Political Figure or Politically Exposed Person. For the purposes of this Part 9, "Immediate Family Member" means a spouse or a person considered to be the equivalent of a spouse, parent, sibling, children and their spouses or persons considered to be equivalent of a spouse, or a spouse's parents and siblings. 6 "Politically Exposed Person" means individuals who are or have been entrusted with prominent public functions in a foreign or domestic country, including heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations or international organizations, important political party officials, and family members or Close Associates of any of the foregoing. In addition, a Politically Exposed Person includes any corporation, business or other entity that has been formed by, or for the benefit of, a Politically Exposed Person, as well as Immediate Family Members (as defined in footnote 5) and Close Associates of Politically Exposed Persons. 7 The term "benefit plan investor" is defined to include (i) employee benefit plans subject to Title I of ERISA (e.g., US corporate pension plans, Taft-Hartley plans, and 401(k) plans), (ii) plans subject to Section 4975 of the Internal Revenue Code (e.g., "Keogh" plans and individual retirement accounts and arrangements ("IRAs")), and (iii) entities (e.g., a fund-of-funds and a collective investment trust) whose underlying assets are deemed to constitute "plan assets" under ERISA due to a failure of the entity to meet one of the regulatory exceptions under ERISA. Governmental plans and non-US plans are not included in this definition. 8 The term "spousal equivalent" shall mean a cohabitant occupying a relationship generally equivalent to that of a spouse. Spousal equivalents may pool their finances for the purposes of qualifying as accredited investors. 9 If the Subscriber has increased the amount of indebtedness secured by the Subscriber's primary residence within 60 days prior to the sale of the Shares and such increase is not as a result of the acquisition of the primary residence, the Subscriber must include in the calculation as a liability such increase regardless of whether the amount of overall indebtedness is less than the estimated fair market value of the residence. 10 For purposes of this item, eligible professional certifications, designations and credentials are set forth at sec.gov/rules/other/2020/33-10823.pdf. 11 "Family offices" are entities established by families to manage their assets, plan for their families' financial future, and provide other services to family members. Subscribers who check this box under the capacity of "family office" are expected to have no clients other than "family clients." "Family clients" generally are family members, former family members, and certain key employees of the family office, as well as certain of their charitable organizations, trusts, and other types of entities. Although the definition of "family client" from Rule 501(a)(13) includes both natural persons and institutions, only family clients that are institutions may be considered institutional accredited investors. 12 In general, a trust other than a revocable grantor trust will not qualify as an "accredited investor" solely because all of its grantors and/or all of its beneficiaries are "accredited investors." 13 An RBIC is a company that is approved by the Secretary of Agriculture and that has entered into a participation agreement with the Secretary of Agriculture. 14 In determining accredited investor status under Rule 501(a)(8), one may look through various forms of equity ownership to natural persons. If those natural persons are themselves accredited investors, and if all other equity owners of the entity are accredited investors, the entity would be an accredited investor under Rule 501(a)(8). 15 For example, the Subscriber may be an Indian tribe, governmental body, fund, or entity organized under the laws of a foreign country, (i) that owns "investments," as defined in Rule 2a51-1(b) under the Investment Company Act, (ii) in excess of $5,000,000 and (iii) that was not formed for the specific purpose of investing in the securities offered.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors writing. The Subscriber shall also immediately notify PIMCO upon the occurrence of any pending investigation, proceeding, or other action that could give rise to an occurrence described in the prior clauses (a) through (i). PALCO may, in its sole discretion, cause the Subscriber to compulsorily withdraw from PALCO, in whole or in part, at any time if PIMCO knows or has reason to believe that the Subscriber has breached or may breach one or more of the representations and warranties set forth above. In addition, Subscribers that are not able to check "True" with respect to the representations (a) through (i) above are hereby notified that they may be required as a condition to their holding the Shares and not being withdrawn from PALCO in whole or in part to provide a description in writing on a form acceptable to PIMCO in its sole discretion of any matters covered in (a) through (i) and that such description may be disclosed to investors in PALCO.

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors AML Subscriber Identification Questionnaire Please fill out this form, sign, and reply via email or fax. (a) General Information (1) Subscriber full name, including any aliases (2) Subscriber Physical or Residential Address (3) Principal Business Address (if different address above) (4) Nature / Purpose / Objective of Entity, if applicable (5) Domicile of Formation, if applicable (6) Subscriber's Nationality (Individual) (7) Subscriber's Place of Birth (Individual) (8) Subscriber's Occupation (Individual) (b) Senior Political Figure Status (1) Is the Subscriber or any of the Beneficial Owners or Control Persons (as defined below) a Senior Political Figure or Politically Exposed Person, as defined in Section (o)? Yes No (2) If "Yes," provide relationship of Senior Political Figure or Politically Exposed Person to Subscriber. (c) Source of Funds (1) Please indicate the source of funds to be invested: (2) Is the source of funds family capital or is the Subscriber a family office? Yes No

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (d) Business / Source of Wealth Please provide an explanation of the Subscriber's Business / Source of Wealth (e) Indication of Expected Turnover Please indicate the number of expected transactions through the account (f) Fund of Fund Status Is the amount of the Subscriber's subscription (as set forth in this Agreement, combined with any previous investments in the Fund) 40% or more of the total assets and committed capital of the Subscriber? Yes No (g) Agent or Nominee Status (1) Is the Subscriber investing as an agent, nominee, or on behalf of another person? Yes No (2) If "Yes," provide name of such person and briefly describe their relationship to the Subscriber. (h) Bearer Shares Has the Subscriber issued, or does or will it issue, bearer shares or bearer instruments? Yes No (i) Beneficial Owners For Legal Entity Subscribers, unless one of the exceptions in Section (n) applies, please identify each natural person who holds 10% or greater direct or indirect equity interest in the Subscriber. Note: The Fund may seek additional information on beneficial owners. Name and any Aliases Date of Birth Place of Birth Nationality SSN, passport number, or other similar Identification Number Residential Address Percentage Ownership

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (j) Control Persons For Legal Entity Subscribers, unless one of the exceptions in Section (n) applies, please identify at least one "Control Person" of the Entity, meaning any individual with significant responsibility to control, manage, or direct the legal entity. A Control Person may be an executive officer or senior manager (e.g., Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Managing Member, General Partner, President, Treasurer). For Trusts, identify any Trustees, Grantors, Settlor, Protector (if any), of the Trust, and the beneficiaries (including every beneficiary that falls within a designated characteristic or class) or the Trust. Name and any Aliases Date of Birth Place of Birth Nationality SSN, passport number, or other similar Identification Number Residential Address (k) Power of Attorney For legal entities, unless one of the exceptions in Section (n) applies, please identify any natural persons having powers of attorney over the Subscriber, if applicable. For each such person, provide a copy of a current photographic ID and copy of proof of address. Name and any Aliases Residential Address (l)

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors Identity Verification (1) Natural Persons Subscribers: Provide a copy of a current valid passport, national ID card, driver's license (bearing photo and signature) and a copy or original of a bank reference, professional character reference, utility bill, or bank statement dated within the past 6 months that confirms the Subscriber's address. (2) Legal Entity Subscribers: a. Proof of Legal Existence: Provide the following, as applicable: Companies (a) A copy of certificate of incorporation (or equivalent) or copy of verification from a government registry website or a copy of a certificate of incorporation (or equivalent) and a copy of verification from government registry website; and a copy of the company constitution, memorandum and articles of association, or equivalent and (b) The directors' register and (c) A copy of the mandate authorizing the director(s) to enter the subscription (i.e., a board resolution or reference in constitutional document) Partnerships (a) A copy of certificate of registration (or equivalent) or copy of certificate of registration (or equivalent) and a copy of verification from a government registry website; and A copy of the partnership agreement or equivalent and (b) A copy of the mandate authorizing the general partner to enter into the subscription (board resolution or reference in constitutional document) Trusts (a) Copy of the trust deed (this may be redacted if one can clearly identify the information required) Unregistered Pension, Government Entity, Charities, Clubs and Societies (a) The articles of incorporation/corporate charter/extract from approved government registry and proof of tax exempt status of the legal entity (including obtaining a copy of a form submitted to the government tax collection body within the Subscriber's jurisdiction) b. Beneficial and Control Persons: Unless one of the exceptions in Section (n) applies, for each Beneficial Owner listed in Section (i) and/or Control Person listed in Section (j) above, provide a copy of a current valid passport, national ID card, driver's license (bearing photo and signature) and a copy or original of a bank reference, professional character reference, utility bill or bank statement dated within the past 6 months that confirms the person's address. (m)

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors Authorized Signatories Please provide below or attach a list of authorized signatories for this investment and their signature specimens and provide evidence of appointment. Full Name Signature Specimen (n) Exceptions (1) If the Subscriber qualifies under any of the categories below, the Subscriber does not need to identify Beneficial Owners in Section (i) or Control Persons in Section (j). Please check any that apply and provide proof of status as indicated. Subscriber Type Applies (A) A Bank regulated by a U.S. Federal Functional Regulator or by a State bank regulator; a Banking Holding Company; or a Savings and Loan Bank Holding Company (provide proof of regulation) (B) A U.S. Government, U.S. Government Agency, and U.S. Central Bank / Monetary Authority18 (provide proof of government affiliation) (C) An Insurance Company regulated by a State (provide proof of regulation) (D) An Investment Adviser registered with the SEC under Section 202(a)(11) of the Investment Advisers Act of 1940 (provide proof of regulation) (E) A Mutual Fund regulated by the OCC or the SEC OR a company registered with the SEC under the Investment Company Act of 1940 (provide proof of regulation) (F) A Non-Financial Institution Public Company listed on the New York Stock Exchange, American Stock exchange, or NASDAQ Stock Market19 OR has a class of equity securities that is held of record by either (i) 2,000 persons, or (ii) 500 persons who are not accredited investors and, and on the last day of the subscriber's fiscal year, its total assets exceed $10 million (provide proof of listing) OR has issued equity or debt securities to the public in a registered offering and is required to file a registration statement under the Securities Act of 1933 (provide evidence of exchange registration) (G) A Securities and Commodities Broker/Dealer regulated by the SEC or the CFTC OR registered with the SEC under the Securities Exchange Act of 1934. The Securities Exchange Act of 1934 requires, without limitation, the following entities to be registered with SEC: Securities brokers or dealers; or an association of brokers and dealers registered as a national securities association OR registered with the CFTC (provide proof of government affiliation) (H) A Foreign Financial Institution that is required to provide beneficial ownership information to a collector (provide proof of regulation AND frequency and form in which it reports UBO information to their regulator and the regulatory citation that requires such reporting) (I) A non-U.S. Government, Non-U.S. Government Agency, Non-U.S. Central Bank/Monetary Authority or Supra-national Organization20 (provide proof of government affiliation) (J) A pension fund for a professional association or trade union or that is acting on behalf of employees of the entities listed above, including a plan established under the Employee Retirement Income Security Act of 1974 ("ERISA") in the U.S., or its equivalent outside of the U.S.; a Defined Contribution / Benefit Plan; an Individual Retirement Account (Employer sponsored only); Pension Schemes; a Superannuation Plan; and Registered Retirement Savings Plan (provide evidence of license to operate under the regulatory body; evidence of filings of required documentation with the regulatory body; letter of good standing from the regulatory body; or name of regulator and screenshot from the regulator's website showing proof of regulation by the regulatory body). (K) Any direct majority-owned subsidiary or direct or indirect wholly-owned subsidiary of any of the above (please provide copy of corporate structure depicting relationship and including all layers of ownership AND the proof of status required for the exempt parent entity) (2) If the Subscriber qualifies under any of these categories and provides the required documentation, the Subscriber does not need to identify Beneficial Owners in Section (i). Control Persons do need to be identified in Section (j) and such Control Persons need to provide the relevant identity verification information requested in Section (l). Please check any that apply and provide proof of status as indicated. Subscriber Type Applies (A) A charity, religious group or non-profit that is a nonprofit corporation or similar entity and filed its organizational documents with the appropriate State Authority (provide completed legal documentation for the entity type) (B) A Foundation or Endowment that is a nonprofit corporation or similar entity and filed its organizational documents with the appropriate State Authority (provide completed legal documentation for the entity type) (C) A University or Hospital that is a nonprofit corporation or similar entity and filed its organizational documents with the appropriate State Authority (provide completed legal documentation for the entity type) (D) A pooled investment vehicle that is operated or advised by a financial institution excluded under Section (n).

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PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors (o) Anti-Money Laundering and Sanctions Compliance Definitions As used in this Appendix D, the following terms shall have the following meanings: 1. Close Associate. "Close Associate" means, with respect to a Senior Foreign Political Figure or a Politically Exposed Person, a person who is widely and publicly known internationally (or actually known to the Subscriber) to maintain an unusually close relationship with the Senior Foreign Political Figure or Politically Exposed Person, and includes a person who is in a position to conduct substantial domestic and international financial transactions on behalf of the Senior Foreign Political Figure or Politically Exposed Person. 2. Foreign Bank. "Foreign Bank" means an organization that (a) is organized under the laws of a country outside the United States; (b) engages in the business of banking; (c) is recognized as a bank by the bank supervisory or monetary authority of the country of its organization or principal banking operations; (d) receives deposits to a substantial extent in the regular course of its business; and (e) has the power to accept demand deposits, but does not include the U.S. branches or agencies of a foreign bank. 3. Foreign Shell Bank. "Foreign Shell Bank" means a Foreign Bank without a physical presence in any country, but does not include a Regulated Affiliate. 4. Immediate Family Member. "Immediate Family Member" means, for the purpose of this Appendix D, a spouse or a person considered to be the equivalent of a spouse, parent, sibling, children and their spouses or persons considered to be equivalent of a spouse, or a spouse's parents and siblings. 5. Non-Cooperative Jurisdiction or Territory. "Non-Cooperative Jurisdiction or Territory" means any non-U.S. country or territory that has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, such as the Financial Action Task Force on Money Laundering, of which the United States is a member and with which designation the United States representative to the group or organization concurs. 6. Politically Exposed Person. "Politically Exposed Person" means individuals who are or have been entrusted with prominent public functions in a foreign or domestic country, including heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations or international organizations, important political party officials, and family members or Close Associates of any of the foregoing. In addition, a Politically Exposed Person includes any corporation, business or other entity that has been formed by, or for the benefit of, a Politically Exposed Person, as well as Immediate Family Members (as defined in this Appendix D) and Close Associates of Politically Exposed Persons. 7. Regulated Affiliate. "Regulated Affiliate" means a Foreign Shell Bank that (a) is an affiliate of a depository institution, credit union, or Foreign Bank that maintains a physical presence in the United States or a foreign country; and (b) is subject to supervision by a banking authority in the country regulating such affiliated depository institution, credit union, or Foreign 8. Senior Political Figure. "Senior Political Figure" means (a) a current or former senior official in the executive, legislative, administrative, military or judicial branches of a government (whether elected or not), a current or former senior official of a major political party, or a current or former senior executive of a government-owned commercial enterprise, (b) a corporation, business, or other entity that has been formed by, or for the benefit of, any such individual, (c) an Immediate Family Member (as defined in this Appendix D) of any such individual, and (d) a person who is widely and publicly known (or is actually known) to be a Close Associate of such individual. For purposes of this definition, a "senior official" or "senior executive" means an individual with substantial authority over policy, operations, or the use of government-owned resources.

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![LOGO](g112132g01f21.jpg)

PIMCO Asset-Based Lending Company LLC – Series [I/II] Subscription Agreement for Non-US Investors Required Pre-Clearance Questions If you are a PIMCO or PALCO employee, certain non-employee personnel, officer, director, or an Immediate Family Member thereof, please select one or more applicable option(s) below (required) and complete the below Pre-Clearance Questions in this Appendix E: PIMCO employee/personnel or Immediate Family Member PALCO officer or director (including PIMCO employee who is PALCO officer or director) or Immediate Family Member For all transactions via the Executive Deferred Compensation Plan or otherwise in respect of PALCO, please answer the following questions to the best of your knowledge and belief: Yes No Do you have any questions about the fact that written approval is required prior to (i) transferring an interest in or (ii) partially or fully requesting repurchases of shares of in PALCO prior to PALCO being wound down and that requests to transfer or have shares repurchased will be reviewed on a case-by-case basis and there is no guarantee that the request will be approved? Do you possess information regarding any material and nonpublic changes to PALCO (e.g., pending changes in the share repurchase plan withdrawal rights, changes to the strategy, key personnel, material changes to NAV or otherwise)? Do you have any questions regarding your obligations under PIMCO's MNPI Policy, which prohibits (i) sharing material non-public information about PALCO or PALCO's holdings with any individual who is not authorized to possess such information; or (ii) using such information to make or influence others to make an investment decision with respect to PALCO? Are you a Section 16 filer of PALCO? •If yes, have you engaged in any opposite way transaction with PALCO, including compensation with PALCO, within the last 180 days?or the purposes of this exception, the Subscriber may be a department or agency of the U.S. OR the Subscriber may be a "subsidiary" of such department or agency. To meet the subsidiary test and qualify for the exclusion, the entity must: (1) be wholly or majority owned or controlled by the U.S. government; AND (2) exercise governmental authority on behalf of the U.S. For the purposes of this exception, the Subscriber may be a department or agency of the U.S. OR the Subscriber may be a "subsidiary" of such department or agency. To meet the subsidiary test and qualify for the exclusion, the entity must: (1) be wholly or majority owned or controlled by the U.S. government; AND (2) exercise governmental authority on behalf of the U.S. 9 The non-FI public company must be designated as a "NASDAQ National Market Security" (except stock or interests listed under the separate "NASDAQ Capital Markets Companies" heading). 20 This exception includes a department or agency of a non-US government so long as the non-US government department or agency does not engage in the type of activity a private citizen or company can also participate in (i.e., standard financial transactions or business transactions). 21 "Immediate Family Member" (for the purpose of this Appendix E) means (1) an employee's spouse; (2) any of the following persons sharing the same household with the employee (which does not include temporary house guests): a person's child, stepchild, grandchild, parent, stepparent, grandparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, legal guardian, adoptive relative, or domestic partner; (3) any person sharing the same household with the employee (which does not include temporary house guests) that holds an account in which the employee is a joint owner or listed as a beneficiary; or (4) any person sharing the same household with the employee in which the employee contributes to the maintenance of the household and material financial support of such person.

## Exhibit 10.4

**Exhibit 10.4** 

**PIMCO Asset-Based Lending** 

**Company LLC** 

650 Newport Center Drive

Newport Beach, CA 92660

September 19, 2025

**Allianz Asset Management of America LLC** 

**650 Newport Center Drive** 

**Newport Beach, CA, 92677** 

RE: Investment in PIMCO Asset-Based Lending Company LLC

Ladies and Gentlemen:

This amended and restated letter agreement (this "**Letter Agreement**") is being entered into in connection with the proposed investment by Allianz Asset Management of America LLC, a Delaware limited liability company (the "**Investor**"), in PIMCO Asset-Based Lending Company LLC - Series II ("**Series II**"), a registered series of PIMCO Asset-Based Lending Company LLC, a Delaware limited liability company (the "**Company**") and amends and restates the letter agreement, dated July 15, 2025, by and among the Operating Manager (as defined below), the Investor, Series II and the Company (the "**Original Agreement**"), in its entirety. Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to them in the Amended and Restated Limited Liability Company Agreement of the Company dated June 12, 2025, as amended, restated, modified or supplemented from time to time (the "**LLC Agreement**"), and the Confidential Private Placement Memorandum of the Company dated June 2025, as amended, restated, modified or supplemented from time to time (the "**Memorandum**" and together with the LLC Agreement, the "**Company Documents**"), as the context may require. Notwithstanding any of the provisions set forth in the Investor's Subscription Agreement, the Original Agreement and the Company Documents, and in consideration of the Investor's investment in the Company, the Company, Series II, Pacific Investment Management Company LLC ("**Operating Manager**" or "**PIMCO**") and the Investor agree that the following provisions will be given effect:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **<u>Transfer</u>**. The Company agrees that it will not unreasonably withhold its consent to any reasonable request (including, for the avoidance of doubt, a request in connection with a change in law or interpretation by a regulatory or administrative body that has jurisdiction over the operations of the Investor which affects the Investor's ability to invest or causes unfavorable tax treatment with respect to the Investor's investment in the Company) by the Investor to transfer its Shares to any of its affiliates that control, are controlled by, or under common control with, the Investor and that satisfy the Company's qualification requirements (including, for the avoidance of doubt, that such transfer will not cause adverse tax consequences to the Company) and the requirements set forth in the Company Documents; provided, however, that the Investor may transfer all of its Shares notwithstanding the provisions of LLC Agreement Section 10.3(b)(vi). The terms of this Letter Agreement shall apply and remain in effect to any transferee pursuant to this paragraph 1 unless otherwise agreed by the parties hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **<u>Distributions in Kind</u>**. If the Company intends to make any distribution or withdrawal payment in kind (including during the dissolution and winding up of the Company), the Company shall provide 10 Business Days' prior written notice thereof to the Investor. Furthermore, in the event the Company determines to make a distribution in kind to the Investor, PIMCO agrees that, at the Investor's request, any in-kind distribution to the Investor shall be distributed to a separate account established with PIMCO for the benefit of the Investor (the "**Separate Account**"). PIMCO agrees that it will manage such Separate Account for the benefit of the Investor and, as soon as reasonably possible, will use reasonable efforts to arrange for the liquidation of the assets in such Separate Account at their fair market value. The Investor and PIMCO shall negotiate in good faith reasonable compensation for the services to be provided by PIMCO in connection with the establishment or management of any Separate Account pursuant to this paragraph. If PIMCO is unable to sell the assets in such Separate Account within a reasonable time, PIMCO shall be permitted, in its sole discretion, to terminate the engagement or assign the management of such Separate Account to another manager selected by the Investor or agree on alternative methods of disposition with the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **<u>Third-Party Disclosure</u>**. The Operating Manager consents to the Investor's disclosure of confidential information of the Company to the Investor's affiliates, service providers, accountants, auditors, attorneys, investment consultants, professional advisors, fiduciaries and similar advisors bound by a duty or obligation of confidentiality that is substantially similar to the Investor's confidentiality obligations under the Company Documents, as modified by this Letter Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **<u>Power of Attorney</u>**. Notwithstanding anything to the contrary in the Company Documents or the Subscription Agreement, any power of attorney granted by the Investor under the LLC Agreement or the Subscription Agreement is limited to ministerial acts performed by the Operating Manager, the Company or the Series in which the Investor has subscribed for Shares, as applicable, on behalf of the Investor, and the Operating Manager shall not use the power of attorney granted to it by the Investor to reduce the Investor's rights or increase its obligations under the Company Documents, without the written consent of the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **<u>Notifications</u>**. Any notices to the Investor shall not be deemed effective until and unless they are actually received by the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **<u>Deemed Consent</u>**. The Company hereby agrees that, in the event that the Investor acts neither affirmatively nor negatively with respect to any matter as to which its consent or approval is solicited pursuant to the LLC Agreement, the Investor shall be deemed not to have consented to or approved the taking of such action, provided, however, that this provision shall not apply to any notification of proposed material changes in respect of which the Investor has been granted a prior notice period to object pursuant to the Company Documents. In such cases, the absence of a written objection within the notice period shall be interpreted in accordance with the Company Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **<u>Reliance by the Investor</u>**. It is understood that the representations, warranties, covenants and acknowledgements set forth herein will be relied upon by the Investor during the term of this Letter Agreement and the Investor's investment in the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **<u>Compliance with Laws</u>**. PIMCO and the Company represent and warrant that they are subject to internal controls and procedures reasonably designed to achieve compliance with applicable anti-bribery laws, anti-money laundering laws, and economic sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **<u>Closing Documents</u>**. Within 30 days after Investor's initial purchase of Shares, the Operating Manager will provide the Investor with electronic copies of the executed organizational documents of the Company, and any other agreements entered into with the Investor with respect to the Investor's investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **<u>Amendments to the LLC Agreement</u>**. The Company shall provide to the Investor true and correct copies of all amendments to the LLC Agreement that are adopted by the Company as soon as reasonably practicable after the adoption of such amendment. The Investor agrees that the requirements of this paragraph shall be satisfied if the Company files a Form 8-K with the U.S. Securities Exchange Commission ("**SEC**") disclosing any amendments to the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **<u>Investor Master Data Reporting.</u>** Subject to the Investor's confidentiality obligations under the Company Documents, as modified by this Letter Agreement and to the extent consistent with applicable law, the Company agrees to use reasonable efforts to provide the Investor either (1) the *aggregate* NAV of *all* Classes of Shares outstanding at the same time as the Company provides such information to other shareholders of the Company, which is expected to be no later than twenty-eight (28) calendar days following the end of each calendar month or (2) the Investor's share of the aggregate economic interests of the Company as a percentage within the same time period. The Investor agrees that the requirements of this paragraph shall be satisfied if the Company reports its NAV per Share and number of Shares outstanding for each type of Share outstanding as of the last day of each month on its website as described in the Memorandum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **<u>Reporting Requirements</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company agrees to cause the preparation and provision to the Investor, generally within forty-five (45) calendar days following the end of each fiscal quarter other than the final quarter of each fiscal year, and within ninety (90) calendar days following the end of each fiscal year, of a balance sheet including assets and liabilities of the Company, generally prepared in accordance with U.S. generally accepted accounting principles that will detail, at a minimum (i) the Company's fair market value of investments and a description of the composition of the investments, and (ii) a short description on composition of liabilities, including debt and derivatives. The Investor agrees that the requirements of this paragraph shall be satisfied if the Company files a Form 10-Q or a Form 10-K, as applicable, with the SEC after each fiscal quarter within the timeline required by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company agrees to collaborate with the Investor to assess whether liabilities accounted for as amortized costs serve as a proxy for fair value under the International Financial Reporting Standard ("**IFRS**"). Following any such assessment, if the Investor determines that the liabilities accounted for as amortized costs do not serve as a proxy for fair value under IFRS, the Company will use commercially reasonable efforts to cooperate with the Investor, at the

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Investor's expense, to engage a third-party provider to perform the fair value analysis, and the Company will provide to the third party provider all information necessary for such purpose. For the avoidance of doubt, any other third-party costs associated with this paragraph 12 of this Letter Agreement will be at the Investor's own expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company shall provide the Investor the information reasonably required for the Investor's tax filings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **<u>Future Investment</u>**. The Company and the Investor hereby agree that this Letter Agreement (including paragraphs 11, 12 and 13 hereof) shall apply solely to (i) the seed capital contributed by the Investor and (ii) any subsequent investment in Shares made by the Investor or any Affiliate of the Investor (each such subsequent investment an "**Additional Subscription**") within two years of the date of the Original Agreement, and shall not apply to any other Additional Subscription or any other subscription for Shares. In the event that any Additional Subscription results in a change in accounting treatment or reporting requirements of the Investor with respect to its investment in the Company, then the Investor and the Company shall use commercially reasonable efforts to agree on (1) any revised or supplemental reporting obligations applicable to such Additional Subscription and on (2) any statement of accountability. In this case, the Company will provide the Investor with a contact person and department which will be responsible to provide Investor with the information described in this paragraph 13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **<u>Potential Consolidation as of September</u> <u>30, 2025</u>**. If Investor is anticipated to exceed the Ownership Limitation (as defined below) as of September 30, 2025 based on the best information available prior to the Investor's internal financial reporting deadline, then the Company shall provide Investor the following information to allow Investor to consolidate the Company with the Investor in its financial statements with respect to the third quarter of fiscal year 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Unadjusted and unaudited trial balance as of August 31, with sufficient data on asset class categories for
investments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Acquisition cost basis for investments as of August 31

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Par value of leverage as of August 31

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. September subscription flows/amounts into PALCO

The information to be delivered by the Company with respect to the third quarter of 2025 pursuant to this Section 14 shall be in lieu of information that would have otherwise been required pursuant to Section 15.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **<u>Ownership Limitation</u>**. The Operating Manager and the Company hereby agree to seek investments in Shares of the Company from third party investors such that, as of December 31, 2025 and on an ongoing basis thereafter measured as of the last business day of each calendar quarter thereafter, the aggregate economic interests of the Investor and its Affiliates (collectively, the "**Investor Parties**") in the Company is less than seventeen percent (17%) of the total outstanding economic interests in the Company (the "**Ownership Limitation**"). In the event the Investor Parties' aggregate economic interests in the Company equal or exceed the Ownership Limitation on November 30, 2025 or on the last business day of the second month of any calendar quarter thereafter, the Company agrees that it shall, effective prior to the last business day of the applicable calendar quarter, repurchase Shares from the Investor Parties, without penalty to any

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Investor Parties, to the extent necessary such that the Investor Parties' aggregate economic interests in the Company shall no longer equal or exceed the Ownership Limitation after giving effect to such Share repurchases. For the avoidance of doubt, any such Share repurchases shall not be pursuant to, or subject to any limitations under, the Repurchase Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. **<u>Confidentiality</u>**. The Investor agrees, and shall cause each of its Affiliates and agents to agree, to keep confidential and shall not disclose without the prior written consent of the Operating Manager (other than as set forth in paragraph 3 of this Letter Agreement) any information with respect to the Company or any Portfolio Asset, including the Company Documents and the terms thereof and this Letter Agreement and the terms hereof, the quarterly and annual reports and financial statements of the Company and any information contained therein, and any other communications from the Company and/or the Operating Manager to the Investor, and to use all such information solely in connection with its Shares; provided, that the Investor may disclose any such information (i) as has become generally available to the public other than as a result of the breach of this paragraph 16 by the Investor or any agent or Affiliates of the Investor, (ii) as may be required to be included in any report, statement or testimony required or requested to be submitted to any municipal, state or national regulatory body having jurisdiction over the Investor, (iii) as may be required in response to any summons or subpoena or similar demand or in connection with any litigation; provided, that the Investor notifies the Operating Manager and the Company promptly before any confidential information of the Company or any Portfolio Asset is disclosed, so that the Company has an opportunity to seek a protective order or similar protections, (iv) to the extent necessary in order to comply with any law (including any public records law), order, regulation, ruling or governmental request applicable to the Investor, (v) as set forth in paragraph 3 of this Letter Agreement, (vi) with sufficient prior notice to the Company, as may be required to be disclosed in financial statements and related disclosures of Allianz SE and (vii) as may be required in connection with an audit by any taxing authority. Notwithstanding the foregoing or anything else in this Letter Agreement or the Company Documents to the contrary, the Investor (and each employee, representative or other agent of the Investor) may disclose to any and all persons the tax treatment and tax structure of the Company, the Series, and the Portfolio Assets and the Company's tax strategies. For this purpose, the terms "tax structure," "tax treatment" and "tax strategies" include only those facts and information that are relevant to the U.S. federal income tax treatment of the transaction and do not include (x) information relating to the identity of the Company, any Members or any Portfolio Assets or (y) the terms of this Letter Agreement, the Company Documents and the other agreements and documents referred to herein and therein or information relating to any Portfolio Asset to the extent such terms or information are not relevant to such tax treatment, structure or strategies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. **<u>Miscellaneous</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Headings; Captions</u>. The captions in this Letter Agreement are included for convenience of reference only and in no way define or delineate any of the provisions hereof or otherwise affect their construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transferability</u>. This Letter Agreement will be binding upon, and will inure to the benefit of and be enforceable by, the parties and their respective successors and permitted assigns. This Letter Agreement, its terms and the rights granted hereunder are personal to the Investor and the rights shall not be transferable to a third party without consent except as provided in paragraph 1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Representations and Warranties</u>. By executing this Letter Agreement, the Investor represents and warrants that (i) it has duly authorized the execution, delivery, and performance of this Letter Agreement; (ii) the terms of this Letter Agreement are binding upon, and in full force and effect against, the Investor, subject to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors' rights and remedies generally and to general principles of equity; and (iii) the execution, delivery and performance of this Letter Agreement by the Investor does not and will not violate any agreement or arrangement to which it is a party or by which it may be bound, or any order or decree to which it is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Governing Law</u>. This Letter Agreement is an "Other Agreement" within the meaning of Section 19.3 of the LLC Agreement, and shall be governed by and construed and enforced in accordance with the laws of the State of Delaware, without regard to the principles of conflicts of law. Any disputes arising out of or in connection with this Letter Agreement shall be brought exclusively in the Court of Chancery of the State of Delaware, or if such jurisdiction is not available, in the other courts of the State of Delaware or in the United States District Court for the District of Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Agreement Supremacy</u>. This Letter Agreement supersedes all other prior letters (including the Original Agreement) and understandings, both written and verbal, among the parties or any of them with respect to the matters specifically addressed herein. To the extent permissible under applicable law, in the event of any inconsistency between the terms of this Letter Agreement and the LLC Agreement or any other document or agreement relating to the Investor's investment in the Company, the parties agree that the terms of this Letter Agreement shall prevail. Except as expressly modified by this Letter Agreement, the LLC Agreement shall in all respects remain in full force and effect with respect to the Investor, and the provisions in the LLC Agreement regarding the enforcement thereof shall apply to the matters covered herein as if such matters had been included in the LLC Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendment</u>. No amendment or modification of this Letter Agreement shall have any force or effect unless it is in writing and signed by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Severability</u>. If any term in this Letter Agreement is deemed invalid or unenforceable, such term shall be deemed to be modified or limited to the extent necessary to make the term valid and enforceable, or if such modification or limitation will not have the desired effect, the term shall no longer form part of this Letter Agreement and shall not have any effect upon the validity or enforceability of the remaining terms set out in this Letter Agreement. Any term or provision of this Letter Agreement that is invalid or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms or provisions of this Letter Agreement or affecting the validity or enforceability of any of the terms or provisions of this Letter Agreement in any other jurisdiction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Counterparts</u>. This Letter Agreement may be executed in one or more counterparts, all of which shall constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall have the same force and effect as if such facsimile or ".pdf" signature page were an original counterpart of such signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Assignment</u>. This Letter Agreement may not be assigned by any party without the prior written consent of all parties hereto; provided however that if the Company's operating agreement is assigned to a successor operating manager in accordance with the requirements of such operating agreement and the LLC Agreement, this Letter Agreement may be assigned by the Operating Manager to the successor operating manager without the prior written consent of the other parties hereto; provided further, that the Investor may assign this Letter Agreement to any affiliate to which it transfers its interest in the Company pursuant to paragraph 1 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>No Waiver</u>. Neither the failure nor any delay on the part of any party hereto to exercise any right under this Letter Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right preclude any other or further exercise of the same or of any other rights, nor shall any waiver of any rights with respect to any occurrence be construed as a waiver of such right with respect to any other occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Term and Termination</u>. Without prejudice to any rights or obligations which have accrued before its termination, this Letter Agreement shall terminate upon the earlier of (i) the agreement of the signatories of this Letter Agreement in writing, (ii) the date on which the dissolution and winding up of the Company are completed or (iii) the date the Investor no longer holds any Shares in the Company.

*[No further text on this page]* 

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Please indicate below if you are in agreement with the terms of this letter.

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| | |
|:---|:---|
| Yours faithfully, | Yours faithfully, |
| **PACIFIC INVESTMENT MANAGEMENT<br>COMPANY LLC** | **PACIFIC INVESTMENT MANAGEMENT<br>COMPANY LLC** |
| By: | /s/ Jason Mandinach |

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| | |
|:---|:---|
| Name: | Jason Mandinach |
| Title: | Managing Director |
| <br> **PIMCO ASSET-BASED LENDING COMPANY LLC** | <br> **PIMCO ASSET-BASED LENDING COMPANY LLC** |

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| | |
|:---|:---|
| By: | /s/ Jason Mandinach |

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| | |
|:---|:---|
| Name: | Jason Mandinach |
| Title: | Principal Executive Officer |
| <br> **PIMCO ASSET-BASED LENDING COMPANY<br>LLC – SERIES II** | <br> **PIMCO ASSET-BASED LENDING COMPANY<br>LLC – SERIES II** |

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| | |
|:---|:---|
| By: | /s/ Jason Mandinach |

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Name: Jason Mandinach <br> Title: Principal Executive Officer

ACKNOWLEDGED AND AGREED AS

OF THE DATE FIRST ABOVE WRITTEN:

**ALLIANZ ASSET MANAGEMENT OF AMERICA LLC** 

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| | |
|:---|:---|
| By: | /s/ Tucker Fitzpatrick |

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Name: Tucker Fitzpatrick

Title: Head of Allianz Asset Management U.S.

## Exhibit 10.5

**Exhibit 10.5** 

**<u>FORM OF INDEMNIFICATION AGREEMENT</u>**

THIS INDEMNIFICATION AGREEMENT ("Agreement") is made and entered into as of the _____ day of _______________, _____, by and between PIMCO Asset-Based Lending Company LLC, a Delaware limited liability company ("Company"), PIMCO Asset-Based Lending Company LLC - Series I ("Series I") and PIMCO Asset-Based Lending Company LLC - Series II ("Series II" and together with Series I, the "Series"), and _________________________ ("Indemnitee").

WHEREAS, at the request of the Company and the Series, as applicable, Indemnitee currently serves or will serve as a director or officer of the Company and may, therefore, be subjected to claims, suits or proceedings arising as a result of such service or related service to the Company and the Series;

WHEREAS, as an inducement to Indemnitee to serve or continue to serve in such capacity, the Company and each Series have separately (but without duplication) agreed to indemnify Indemnitee and to advance expenses and costs incurred by Indemnitee in connection with any such claims, suits or proceedings relating to the Company and each Series, as applicable; and

WHEREAS, the parties by this Agreement desire to set forth their agreement regarding indemnification and advance of expenses.

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

Section 1. <u>Definitions</u>. For purposes of this Agreement:

(a) "Applicable Legal Rate" means a fixed rate of interest equal to the applicable federal rate for mid-term debt instruments as of the day that it is determined that Indemnitee must repay any advanced expenses.

(b) "Change in Control" means a change in control of the Company occurring after the Effective Date of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), whether or not the Company is then subject to such reporting requirement; provided, however, that, without limitation, such a Change in Control shall be deemed to have occurred if, after the Effective Date, (i) any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing 15% or more of the combined voting power of all of the Company's then-outstanding securities entitled to vote generally in the election of directors without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such person's attaining such percentage interest or (ii) the Company is a party to a merger, consolidation, sale of assets, plan of liquidation or other reorganization not approved by at least two-thirds of the members of the Board of Directors then in office, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter

(c) "Corporate Status" means the status of a person as a present or former director, manager, officer, employee or agent of the Company or a Series or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company or a Series. As a clarification and without limiting the circumstances in which Indemnitee may be serving at the request of the Company or a Series, service by Indemnitee shall be deemed to be at the request of the Company or a Series: (i) if Indemnitee serves or served as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any corporation, partnership, limited liability company, joint venture, trust or other enterprise (A) of which a majority of the voting power or equity interest is or was owned directly or indirectly by the Company or a Series or (B) the management of which is controlled directly or indirectly by the Company or a Series or (ii) if, as a result of Indemnitee's service to the Company, or a Series, or any of its affiliated entities, Indemnitee is subject to duties to, or required to perform services for, an employee benefit plan or its participants or beneficiaries, including as a deemed fiduciary thereof.

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(d) "Disinterested Director" means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification and/or advance of Expenses is sought by Indemnitee.

(e) "Effective Date" means the date set forth in the first paragraph of this Agreement.

(f) "Expenses" means any and all reasonable and out-of-pocket attorneys' fees and costs, retainers, court costs, arbitration and mediation costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties and any other disbursements or expenses incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness or deponent in or otherwise participating in a Proceeding. Expenses shall also include expenses incurred in connection with any appeal resulting from any Proceeding including, without limitation, the premium for, security for and other costs relating to any cost bond, supersedeas bond or other appeal bond or its equivalent.

(g) "LLCA" means the Limited Liability Company Agreement of the Company (as amended from time to time and including any schedules, exhibits, annexes or other documents attached to the LLCA).

(h) "Person" means a natural person, partnership (whether general or limited), limited liability company, trust (including a common law trust, business trust, statutory trust, voting trust or any other form of trust), estate, association (including any group, organization, co-tenancy, plan, board, council or committee), corporation, government (including a country, state, county or any other governmental subdivision, agency or instrumentality), custodian, nominee or any other individual or entity (or series thereof) in its own or any representative capacity, in each case, whether domestic or foreign.

(i) "Proceeding" includes any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing, claim, counterclaim, crossclaim, demand or discovery request or any other actual, threatened or completed proceeding, whether brought by or in the right of the Company or otherwise and whether of a civil (including intentional or unintentional tort claims), criminal, administrative, legislative, regulatory or investigative (formal or informal) nature, including any appeal therefrom, except one pending or completed on or before the Effective Date, unless otherwise specifically agreed in writing by the Company and Indemnitee, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of Indemnitee's Corporate Status, by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) on Indemnitee's part while acting pursuant to Indemnitee's Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. If Indemnitee reasonably believes that a given situation may lead to or culminate in the institution of a Proceeding, such situation shall also be considered a Proceeding.

Section 2. <u>Services by Indemnitee</u>. Indemnitee serves or will serve as a director or officer of the Company, and in doing so will also perform services for or on behalf of the Series. However, this Agreement shall not impose any independent obligation on Indemnitee, the Company or any Series to continue Indemnitee's service to the Company or any Series. This Agreement shall not be deemed an employment contract between the Company or any Series (or any other Person) and Indemnitee.

Section 3. <u>General</u>. The Company and each Series separately (but without duplication) shall indemnify, and advance Expenses to, Indemnitee as provided in this Agreement and as otherwise permitted by Delaware law in effect on the Effective Date and as amended from time to time; provided, however, that no change in Delaware law shall have the effect of reducing the benefits available to Indemnitee hereunder based on Delaware law as in effect on the Effective Date. The rights of Indemnitee provided in this Section 3 shall include and be limited by, without limitation, the rights set forth in the other sections of this Agreement, including any additional indemnification provided to Indemnitee permitted by the Delaware Limited Liability Company Act (the "Act"), including, without limitation, Section 18-108 of the Act.

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Section 4. <u>Standard for Indemnification</u>. If Indemnitee is, or threatened to be made, a party to or a participant in any Proceeding, the Company and each Series separately (but without duplication) shall indemnify Indemnitee against all judgments, penalties, fines and amounts paid in settlement and all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with any such Proceeding unless it is established by clear and convincing evidence that such act or omission constitutes actual fraud or willful misconduct. Additionally, the Indemnitee will not be liable to the Company, either Series, the Shareholders, the Members or any other person bound by the LLCA for any losses due to any act or omission by the Indemnitee in connection with the conduct of the Company's business unless there has been a final and non-appealable judgment entered by a court of competent jurisdiction determining that such act or omission constitutes actual fraud or willful misconduct.

Section 5. <u>Indemnification for Expenses of an Indemnitee Who is Wholly or Partially Successful</u>. To the extent that Indemnitee was or is a party to (or otherwise becomes a participant in) any Proceeding and is successful (in whole or in part), on the merits or otherwise, in the defense of such Proceeding, the Company and each Series (without duplication) shall indemnify Indemnitee for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company and each Series (without duplication) shall indemnify Indemnitee under this Section 5 for all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with each such claim, issue or matter, allocated on a reasonable and proportionate basis. For purposes of this Section 5, and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 6. <u>Advance of Expenses for Indemnitee</u>. If Indemnitee is, or is threatened to be, made a party to, a witness or other participant in any Proceeding, the Company and each Series (without duplication) shall, without requiring a preliminary determination of Indemnitee's ultimate entitlement to indemnification hereunder, advance all Expenses incurred by or on behalf of Indemnitee in connection with (a) such Proceeding if it is initiated by a third party who is not a shareholder or member of the Company or a Series or (b) such Proceeding if it is initiated by a shareholder or member of the Company or a Series acting in his or her capacity as such, and which relates to acts or omissions with respect to the performance of duties or services on behalf of the Company or a Series. The Company shall make such advance or advances of incurred Expenses within ten days after the receipt by the Company of a statement or statements requesting such advance from time to time, whether prior to or after final disposition of such Proceeding, which advance may be in the form of, in the reasonable discretion of Indemnitee (but without duplication), (a) payment of such Expenses directly to third parties on behalf of Indemnitee, (b) advance of funds to Indemnitee in an amount sufficient to pay such Expenses or (c) reimbursement to Indemnitee for Indemnitee's payment of such Expenses. Such statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall include or be preceded or accompanied by a written affirmation by Indemnitee and a written undertaking by or on behalf of Indemnitee, in substantially the form attached hereto as <u>Exhibit A</u> or in such form as may be required under applicable law as in effect at the time of the execution thereof. To the extent that Expenses advanced to Indemnitee do not relate to a specific claim, issue or matter in the Proceeding, such Expenses shall be allocated on a reasonable and proportionate basis. The undertaking required by this Section 6 shall be an unlimited general obligation by or on behalf of Indemnitee and shall be accepted without reference to Indemnitee's financial ability to repay such advanced Expenses and without any requirement to post security therefor.<u> </u>

Section 7. <u>Indemnification as a Witness or Other Participant</u>. To the extent that Indemnitee is or may be, by reason of service in Indemnitee's Corporate Status, made a witness or otherwise asked to participate in any Proceeding, whether instituted by the Company, either Series or any other Person, and to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith within ten days after the receipt by the Company of a statement or statements requesting any indemnification from time to time, whether prior to or after final disposition of such Proceeding. Such statement or statements shall reasonably evidence to the Board's satisfaction the Expenses incurred by Indemnitee. In connection with any such advance of Expenses, the Company may require Indemnitee to provide an affirmation and undertaking substantially in the form attached hereto as <u>Exhibit A</u> or in such form as may be required under applicable law as in effect at the time of execution thereof.

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Section 8. <u>Procedure for Determination of Entitlement to Indemnification</u>.

(a) To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary or appropriate to determine whether and to what extent Indemnitee is entitled to indemnification. Indemnitee may submit one or more such requests from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee's sole discretion. The officer of the Company receiving any such request from Indemnitee shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors in writing that Indemnitee has requested indemnification.

(b) Upon written request by Indemnitee for indemnification pursuant to Section 8(a) above, a determination with respect to Indemnitee's entitlement thereto shall promptly be made in the specific case: (i) by the Board of Directors by a majority vote of the Disinterested Directors (even if less than a quorum) or by a majority vote of a committee of the Board of Directors consisting of one or more Disinterested Directors designated to act in the matter by a majority vote of the Disinterested Directors (even if less than a quorum), or (ii) if so directed by the Board of Directors, by the shareholders of the Company, other than directors or officers who are parties to the Proceeding. If it is so determined that Indemnitee is entitled to indemnification, the Company shall make payment to Indemnitee within ten days after such determination. Indemnitee shall cooperate with the Person or Persons making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such Person or Persons upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary or appropriate to such determination in the discretion of the Board of Directors. Any Expenses incurred by Indemnitee in so cooperating with the Person or Persons making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company shall indemnify and hold Indemnitee harmless therefrom.

Section 9. <u>Presumptions and Effect of Certain Proceedings</u>.

(a) In making any determination with respect to entitlement to indemnification hereunder, the Person or Persons (including any court having jurisdiction over the matter) making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 8(a) of this Agreement, and the Company shall have the burden of overcoming that presumption in connection with the making of any determination contrary to that presumption.

(b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, upon a plea of <u>nolo</u> <u>contendere</u> or its equivalent, or entry of an order of probation prior to judgment, does not create a presumption that Indemnitee did not meet the requisite standard of conduct described herein for indemnification.

(c) The knowledge and/or actions, or failure to act, of any other director, officer, employee or agent of the Company or a Series or any other director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall not be imputed to Indemnitee for purposes of determining any other right to indemnification under this Agreement.

Section 10. <u>Remedies of Indemnitee</u>.

(a) If (i) a determination is made pursuant to Section 8(b) of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advance of Expenses is not timely made pursuant to Section 6 or 7 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 8(b) of this Agreement within 60 days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 7 of this Agreement within ten days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to any other section of this Agreement or the LLCA of the Company is not made within ten days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication in an appropriate court located in the State of Delaware, [or in any other court of competent jurisdiction, or in an arbitration conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association], of Indemnitee's entitlement to

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indemnification or advance of Expenses. Indemnitee shall commence a proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 10(a); provided, however, that the foregoing clause shall not apply to a proceeding brought by Indemnitee to enforce Indemnitee's rights under Section 5 of this Agreement. [Except as set forth herein, the provisions of Delaware law (without regard to its conflicts of laws rules) shall apply to any such arbitration. The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration.]

(b) In any judicial proceeding or arbitration commenced pursuant to this Section 10, Indemnitee shall be presumed to be entitled to indemnification or advance of Expenses, as the case may be, under this Agreement and the Company shall have the burden of proving that Indemnitee is not entitled to indemnification or advance of Expenses, as the case may be. If Indemnitee commences a judicial proceeding [or arbitration] pursuant to this Section 10, Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 6 of this Agreement until a final determination is made with respect to Indemnitee's entitlement to indemnification (as to which all rights of appeal have been exhausted or lapsed). The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding [or arbitration] commenced pursuant to this Section 10 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court [or before any such arbitrator] that the Company is bound by all of the provisions of this Agreement.

(c) If a determination shall have been made pursuant to Section 8(b) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding [or arbitration] commenced pursuant to this Section 10, absent a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification that was not disclosed in connection with the determination.

(d) In the event that Indemnitee is successful in seeking, pursuant to this Section 10, a judicial adjudication of [or an award in arbitration to enforce] Indemnitee's rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Company, and shall be indemnified by the Company for, any and all Expenses actually and reasonably incurred by Indemnitee in such judicial adjudication [or arbitration]. If it shall be determined in such judicial adjudication [or arbitration] that Indemnitee is entitled to receive part but not all of the indemnification or advance of Expenses sought, the Expenses incurred by Indemnitee in connection with such judicial adjudication [or arbitration] shall be appropriately prorated.

(e) Interest shall be paid by the Company to Indemnitee at the maximum rate allowed to be charged for judgments under Title 6, Section 2301 of the Delaware Code for amounts which the Company pays or is obligated to pay for the period (i) commencing with either the tenth day after the date on which the Company was requested to advance Expenses in accordance with Section 6 or 7 of this Agreement or the 60th day after the date on which the Company was requested to make the determination of entitlement to indemnification under Section 8(b) of this Agreement, as applicable, and (ii) ending on the date such payment is made to Indemnitee by the Company.

Section 11. <u>Defense of the Underlying Proceeding</u>.

(a) Indemnitee shall notify the Company promptly in writing upon being served with any summons, citation, subpoena, complaint, indictment, request or other document relating to any Proceeding which may result in the right to indemnification or the advance of Expenses hereunder and shall include with such notice a description of the nature of the Proceeding and a summary of the facts underlying the Proceeding. The failure to give any such notice shall not disqualify Indemnitee from the right, or otherwise affect in any manner any right of Indemnitee, to indemnification or the advance of Expenses under this Agreement unless the Company's ability to defend in such Proceeding or to obtain proceeds under any insurance policy is materially and adversely prejudiced thereby, and then only to the extent the Company is thereby actually so prejudiced.

(b) Subject to the provisions of the last sentence of this Section 11(b) and of Section 11(c) below, the Company shall have the right to defend Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided, however, that the Company shall notify Indemnitee of any such decision to defend within 15 days following receipt of notice of any such Proceeding under Section 11(a) above. The Company shall not, without the prior written consent of Indemnitee, which shall not be unreasonably withheld or delayed, consent to the entry of any judgment against Indemnitee or enter into any settlement or compromise with respect to Indemnitee which (i) includes an admission of

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fault of Indemnitee, (ii) does not include, as an unconditional term thereof, the full release of Indemnitee from all liability in respect of such Proceeding, which release shall be in form and substance reasonably satisfactory to Indemnitee, or (iii) would impose any Expense, judgment, fine, penalty or limitation on Indemnitee. This Section 11(b) shall not apply to a Proceeding brought by Indemnitee under Section 10 of this Agreement.

(c) Notwithstanding the provisions of Section 11(b) above, if in a Proceeding to which Indemnitee is a party (i) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld or delayed, that Indemnitee may have separate defenses or counterclaims to assert with respect to any issue which may not be consistent with other defendants in such Proceeding, (ii) Indemnitee reasonably concludes, based upon an opinion of counsel approved by the Company, which approval shall not be unreasonably withheld or delayed, that an actual or apparent conflict of interest or potential conflict of interest exists between Indemnitee and the Company, or (iii) if the Company fails to assume the defense of such Proceeding in a timely manner, Indemnitee shall be entitled to be represented by separate legal counsel of Indemnitee's choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld or delayed, at the expense of the Company. In addition, if the Company fails to comply with any of its obligations under this Agreement or in the event that the Company or any other person takes any action to declare this Agreement void or unenforceable, or institutes any Proceeding to deny or to recover from Indemnitee the benefits intended to be provided to Indemnitee hereunder, Indemnitee shall have the right to retain counsel of Indemnitee's choice, subject to the prior approval of the Company, which approval shall not be unreasonably withheld or delayed, at the expense of the Company (subject to Section 10(d) of this Agreement), to represent Indemnitee in connection with any such matter.

Section 12. <u>Non-Exclusivity; Survival of Rights; Subrogation</u>.

(a) The rights of indemnification and advance of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the LLCA, any agreement or a resolution of the Board of Directors, or otherwise. Unless consented to in writing by Indemnitee, no amendment, alteration or repeal of the LLCA, this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in Indemnitee's Corporate Status prior to such amendment, alteration or repeal, regardless of whether a claim with respect to such action or inaction is raised prior or subsequent to such amendment, alteration or repeal. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right or remedy shall be cumulative and in addition to every other right or remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion of any right or remedy hereunder, or otherwise, shall not prohibit the concurrent assertion or employment of any other right or remedy.

(b) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

(c) The Company's obligation to indemnify or make advances hereunder to Indemnitee who is or was serving at the request of the Company as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advances from such other corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise.

Section 13. <u>Insurance</u>.

(a) The Company will use its reasonable best efforts to acquire directors and officers liability insurance, on terms and conditions deemed appropriate by the Board of Directors, with the advice of counsel, covering Indemnitee or any claim made against Indemnitee by reason of service in Indemnitee's Corporate Status and covering the Company for any indemnification or advance of Expenses made by the Company to Indemnitee for any claims made against Indemnitee by reason of service in Indemnitee's Corporate Status. In the event of a Change in Control, the Company shall maintain in force any and all directors and officers liability insurance policies that were maintained by the Company immediately prior to the Change in Control for a period of six years with the insurance carrier or carriers

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and through the insurance broker in place at the time of the Change in Control; provided, however, (i) if the carriers will not offer the same policy and an expiring policy needs to be replaced, a policy substantially comparable in scope and amount shall be obtained and (ii) if any replacement insurance carrier is necessary to obtain a policy substantially comparable in scope and amount, such insurance carrier shall have an AM Best rating that is the same or better than the AM Best rating of the existing insurance carrier; provided, further, however, in no event shall the Company be required to expend in the aggregate in excess of 300% of the annual premium or premiums paid by the Company for directors and officers liability insurance in effect on the date of the Change in Control. In the event that 300% of the annual premium paid by the Company for such existing directors and officers liability insurance is insufficient for such coverage, the Company shall spend up to that amount to purchase such lesser coverage as may be obtained with such amount.

(b) Without in any way limiting any other obligation under this Agreement, the Company shall indemnify Indemnitee for any payment by Indemnitee which would otherwise be indemnifiable hereunder arising out of the amount of any deductible or retention and the amount of any excess of the aggregate of all judgments, penalties, fines, settlements and Expenses incurred by Indemnitee in connection with a Proceeding over the coverage of any insurance referred to in Section 13(a). The purchase, establishment and maintenance of any such insurance shall not in any way limit or affect the rights or obligations of the Company or Indemnitee under this Agreement except as expressly provided herein, and the execution and delivery of this Agreement by the Company and Indemnitee shall not in any way limit or affect the rights or obligations of the Company under any such insurance policies. If, at the time the Company receives notice from any source of a Proceeding to which Indemnitee is a party or a participant (as a witness or otherwise), the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such Proceeding to the insurers in accordance with the procedures set forth in the respective policies.

(c) Indemnitee shall cooperate with the Company or any insurance carrier of the Company with respect to any Proceeding.

Section 14. <u>Coordination of Payments</u>. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable or payable or reimbursable as Expenses hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

Section 15. <u>Contribution</u>. If the indemnification provided in this Agreement is unavailable in whole or in part and may not be paid to Indemnitee for any reason, other than for failure to satisfy the standard of conduct set forth in Section 4, then, with respect to any Proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such Proceeding), to the fullest extent permissible under applicable law, the Company, in lieu of indemnifying and holding harmless Indemnitee, shall pay, in the first instance, the entire amount incurred by Indemnitee, whether for Expenses, judgments, penalties, and/or amounts paid or to be paid in settlement, in connection with any Proceeding without requiring Indemnitee to contribute to such payment, and the Company hereby waives and relinquishes any right of contribution it may have at any time against Indemnitee.

Section 16. <u>Reports to Shareholders</u>. To the extent required by the Act or the Exchange Act, the Company shall report in writing to its shareholders the payment of any amounts for indemnification of, or advance of Expenses to, Indemnitee under this Agreement arising out of a Proceeding by or in the right of the Company with the Annual Report on Form 10-K of the Company next following the date of the payment of any such indemnification or advance of Expenses.

Section 17. <u>Duration of Agreement; Binding Effect</u>.

(a) This Agreement shall continue until and terminate on the later of (i) the date that Indemnitee shall have ceased to serve as a director, manager, officer, employee or agent of the Company or a Series or as a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company or a Series and (ii) the date that Indemnitee is no longer subject to any actual or possible Proceeding (including any rights of appeal thereto and any Proceeding commenced by Indemnitee pursuant to Section 10 of this Agreement).

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(b) The indemnification and advance of Expenses provided by, or granted pursuant to, this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company or a Series), shall continue as to an Indemnitee who has ceased to be a director, manager, officer, employee or agent of the Company or a Series or a director, trustee, officer, partner, manager, managing member, fiduciary, employee or agent of any other foreign or domestic corporation, real estate investment trust, partnership, limited liability company, joint venture, trust, employee benefit plan or other enterprise that such person is or was serving in such capacity at the request of the Company or a Series, and shall inure to the benefit of Indemnitee and Indemnitee's spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

(c) The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of the business and/or assets of the Company or a Series, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

(d) The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or obtaining any other relief to which Indemnitee may be entitled. Indemnitee shall further be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges that, in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court, and the Company hereby waives any such requirement of such a bond or undertaking.

Section 18. <u>Severability</u>. If any provision or provisions of this Agreement shall be held to be invalid, void, illegal or otherwise unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, void, illegal or otherwise unenforceable that is not itself invalid, void, illegal or otherwise unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section, paragraph or sentence of this Agreement containing any such provision held to be invalid, void, illegal or otherwise unenforceable, that is not itself invalid, void, illegal or otherwise unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 19. <u>Counterparts</u>. This Agreement may be executed in one or more counterparts (delivery of which may be by facsimile or via e-mail as a portable document format (.pdf) or other electronic format), each of which will be deemed to be an original, and it will not be necessary in making proof of this Agreement or the terms of this Agreement to produce or account for more than one such counterpart. One such counterpart signed by the party against whom enforceability is sought shall be sufficient to evidence the existence of this Agreement.

Section 20. <u>Headings</u>. The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 21. <u>Modification and Waiver</u>. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar) nor, unless otherwise expressly stated, shall such waiver constitute a continuing waiver.

Section 22. <u>Notices</u>. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the day of such delivery, or (ii) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:

(a) If to Indemnitee, to the address set forth on the signature page hereto.

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(b) If to the Company or any Series, to:

PIMCO Asset-Based Lending Company LLC

650 Newport Center Drive

Newport Beach, California 92660

Attn: Ryan Leshaw

or to such other address as may have been furnished in writing to Indemnitee by the Company or to the Company by Indemnitee, as the case may be.

Section 23. <u>Governing Law</u>. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflicts of laws rules.

Section 24. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, among the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the LLCA, any directors' and officers' insurance maintained by the Company or any Series and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written.

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| | |
|:---|:---|
| PIMCO ASSET-BASED LENDING COMPANY LLC | PIMCO ASSET-BASED LENDING COMPANY LLC |
| By: |  |
|  | Name: |
|  | Title: |
| PIMCO ASSET-BASED LENDING COMPANY LLC - SERIES I | PIMCO ASSET-BASED LENDING COMPANY LLC - SERIES I |
| By: |  |
|  | Name: |
|  | Title: |
| PIMCO ASSET-BASED LENDING COMPANY LLC - SERIES II | PIMCO ASSET-BASED LENDING COMPANY LLC - SERIES II |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| |
|:---|
| INDEMNITEE |
| Name: |
| Address: |

---

------

**EXHIBIT A** 

AFFIRMATION AND UNDERTAKING TO REPAY EXPENSES ADVANCED

To: The Board of Directors of PIMCO Asset-Based Lending Company LLC

Re: Affirmation and Undertaking

Ladies and Gentlemen:

This Affirmation and Undertaking is being provided pursuant to that certain Indemnification Agreement, dated the _____ day of _______________, _____, by and between PIMCO Asset-Based Lending Company LLC, a Delaware limited liability company ("PALCO"), PIMCO Asset-Based Lending Company LLC - Series I ("Series I") and PIMCO Asset-Based Lending Company LLC - Series II ("Series II" and together with Series I, the "Series", and the Series together with PALCO, the "Company"), and the undersigned Indemnitee (the "Indemnification Agreement"), pursuant to which I am entitled to advance of Expenses in connection with **[Description of Proceeding]** (the "Proceeding").

Terms used herein and not otherwise defined shall have the meanings specified in the Indemnification Agreement.

I am subject to the Proceeding by reason of service in my Corporate Status. I hereby affirm my good faith belief that at all times, insofar as I was involved as a director, manager or officer of the Company, in any of the facts or events giving rise to the Proceeding, I did not act or omit to act with actual fraud or willful misconduct.

In consideration of the advance by the Company for Expenses incurred by me in connection with the Proceeding (the "Advanced Expenses"), I hereby agree that if, in connection with the Proceeding, it is established by a final and non-appealable judgment entered by a court of competent jurisdiction that (1) an act or omission by me constituted actual fraud or willful misconduct or (2) in the case of any alleged federal or state securities law violation by me, (a) there was not a successful adjudication on the merits of each count involving alleged securities law violations, (b) such claims were not dismissed with prejudice on the merits by a court of competent jurisdiction or (c) a court of competent jurisdiction, which had been advised of the position of the Securities and Exchange Commission and of the published position of any state securities regulatory authority in which securities of the Company were offered or sold as to indemnification for violations of securities laws, did not approve a settlement of such claims and find that indemnification of the settlement and related costs should be made, then I shall promptly reimburse the portion of the Advanced Expenses, together with the Applicable Legal Rate of interest thereon, relating to the claims, issues or matters in the Proceeding as to which the foregoing findings have been established.

IN WITNESS WHEREOF, I have executed this Affirmation and Undertaking on this day of ____________, 20 __.

 Name:<br>

## Exhibit 10.6

**Exhibit 10.6** 

*Execution Version*

**CREDIT AND SECURITY AGREEMENT** 

by and among

**PALCO LVS 6 LP,** 

as the Borrower and the Program Manager

**UMB BANK, NATIONAL ASSOCIATION,** 

**not in its individual capacity, but solely as trustee for** 

**PAL CL Trust 1** 

as the Trust,

**BANCO SANTANDER S.A., NEW YORK BRANCH AND THE OTHER FINANCIAL** 

**INSTITUTIONS FROM TIME TO TIME PARTY HERETO** 

as Lenders

and

**BANCO SANTANDER S.A., NEW YORK BRANCH,** 

as Administrative Agent

Dated as of December 12, 2025

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  **Article I** ADVANCES | **Article I** ADVANCES | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.01 | Advances | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.02 | Borrowing Procedures | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1.03 | Grant of Security Interest | 3 |
|  **Article II** THE FACILITY | **Article II** THE FACILITY | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.01 | Note | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.02 | Interest on Advances | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.03 | Repayments and Prepayments | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.04 | General Procedures | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.05 | Characterization of Note | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.06 | Taxes | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2.07 | Benchmark Replacement Setting | 11 |
|  **Article III** SETTLEMENTS | **Article III** SETTLEMENTS | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.01 | Collection Account | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.02 | Collection of Moneys and the Collection Account | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.03 | Distributions from the Collection Account | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.04 | Payments and Computations, Etc | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3.05 | Release of Funds from Collection Account; Corrected Monthly Reports | 18 |
|  **Article IV** FEES AND YIELD PROTECTION | **Article IV** FEES AND YIELD PROTECTION | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.01 | Fees | 18 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.02 | Increased Costs; Capital Adequacy | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 4.03 | Funding Indemnification | 20 |
|  **Article V** CONDITIONS OF BORROWINGS | **Article V** CONDITIONS OF BORROWINGS | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.01 | Closing Date Conditions Precedent | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 5.02 | Conditions Precedent to All Advances | 22 |
|  **Article VI** REPRESENTATIONS AND WARRANTIES | **Article VI** REPRESENTATIONS AND WARRANTIES | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.01 | Representations and Warranties of Borrower and the Program Manager | 23 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.02 | Additional Representations and Warranties | 27 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.03 | Representations of the Trustee | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.04 | Patriot Act | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 6.05 | EU Risk Retention | 30 |

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i

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| | | |
|:---|:---|:---|
|  **Article VII** COVENANTS | **Article VII** COVENANTS | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.01 | Affirmative Covenants of the Borrower, the Program Manager and the Trustee | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.02 | Reporting Requirements | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 7.03 | Negative Covenants of the Borrower and Trustee | 39 |
|  **Article VIII** AMORTIZATION EVENTS; EVENTS OF DEFAULT; REMEDIES | **Article VIII** AMORTIZATION EVENTS; EVENTS OF DEFAULT; REMEDIES | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.01 | Amortization Events | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.02 | Events of Default | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 8.03 | Remedies upon an Event of Default | 44 |
|  **Article IX** ASSIGNMENT OF LENDERS' INTERESTS | **Article IX** ASSIGNMENT OF LENDERS' INTERESTS | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.01 | Assignments | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.02 | Rights of Assignee | 47 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.03 | Evidence of Assignment | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.04 | Pledge; Federal Reserve | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 9.05 | Patriot Act | 48 |
|  **Article X** INDEMNIFICATION | **Article X** INDEMNIFICATION | 48 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 10.01 | Indemnities | 48 |
|  **Article XI** RESERVED | **Article XI** RESERVED | 50 |
|  **Article XII** MISCELLANEOUS | **Article XII** MISCELLANEOUS | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.01 | Amendments, Etc. | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.02 | Notices, Etc. | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.03 | No Waiver; Remedies | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.04 | Binding Effect; Survival | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.05 | Costs and Expenses | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.06 | Captions and Cross References | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.07 | Integration | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.08 | Governing Law | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.09 | Waiver of Jury Trial; Submission to Jurisdiction | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.10 | Execution in Counterparts; Severability | 52 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.11 | No Recourse Against Other Parties | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.12 | Confidentiality | 53 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.13 | Limitation of Liability | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.14 | No Advisory or Fiduciary Responsibility | 57 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.15 | Permitted Releases | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.16 | Nonpetition | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.17 | Limited Recourse | 58 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.18 | Erroneous Payments | 59 |

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ii

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 12.19 | Acknowledgement and Consent to Bail-In of Affected Financial Institutions | 60 |
|  **Article XIII** THE ADMINISTRATIVE AGENT | **Article XIII** THE ADMINISTRATIVE AGENT | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.01 | Authorization and Action | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.02 | Delegation of Duties | 61 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.03 | Agent's Reliance, Etc | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.04 | Indemnification | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.05 | Successor Administrative Agent | 63 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.06 | Administrative Agent's Capacity as a Lender | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.07 | Delivery of Notices and Reports | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 13.08 | Exercise of Trustee Discretion; Limitation of Trustee Liability | 64 |

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**APPENDICES** 

Appendix A Definitions

**SCHEDULES** 

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| | |
|:---|:---|
| SCHEDULE 6.01(l) | List of Offices of the Borrower where Records are Kept and Changes in Borrower Information |
| SCHEDULE 12.02 | Notice Addresses |

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**EXHIBITS** 

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| | |
|:---|:---|
| Exhibit A | Form of Borrowing Request |
| Exhibit B | Form of Note |
| Exhibit C | Closing List |
| Exhibit D | Reserved |
| Exhibit E | Information to be Included in the Schedule of Pledged Consumer Loans |
| Exhibit F | Form of Assignment and Acceptance |
| Exhibit G | Eligible Consumer Loan Forms |
| Exhibit H | Form of Monthly Report |
| Exhibit I | Program Requirements |
| Exhibit J | Form of Compliance Certificate |
| Exhibit K | Form of Reconciliation Email |
| Exhibit L-1 | Form of Tax Compliance Certificate (Non-Partnership Lenders) |
| Exhibit L-2 | Form of Tax Compliance Certificate (Non-Partnership Participants) |
| Exhibit L-3 | Form of Tax Compliance Certificate (Partnership Participants) |
| Exhibit L-4 | Form of Tax Compliance Certificate (Partnership Lenders) |

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iii

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**CREDIT AND SECURITY AGREEMENT** 

**PREAMBLE** 

This **CREDIT AND SECURITY AGREEMENT** (as amended, restated, supplemented or otherwise modified from time to time, and including all Appendices, Schedules and Exhibits hereto, this "**<u>Agreement</u>**") is made as of December 12, 2025, by and among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee (in such capacity, the "**<u>Trustee</u>**") for **PAL CL Trust 1**, a New York common law trust (the "**<u>Trust</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"), and the other financial institutions from time to time party hereto as lenders (together with the Initial Lender, the "**<u>Lenders</u>**"). Unless otherwise indicated, capitalized terms used in this Agreement are defined in, and this Agreement shall be interpreted in accordance with the provisions of, **Appendix A** (*Definitions*) to this Agreement.

**BACKGROUND** 

1. The Borrower owns of the Equity Interest of
the Trust.

2. From and after the Closing Date, the Trustee intends to purchase Consumer Loans from the Seller on behalf of
the Trust.

3. The Borrower intends to finance the Trustee's purchase of Consumer Loans as provided herein by requesting
Advances from the Lenders.

4. The Borrower may request, from time to time, and the Lenders shall, in each case subject to the terms and
conditions contained in this Agreement, make Advances to the Borrower.

5. The Borrower has requested that Prosper Funding LLC act, and Prosper Funding LLC has agreed to act, as servicer
of the Pledged Consumer Loans.

**NOW, THEREFORE**, in consideration of the premises and the mutual agreements herein contained, the parties hereto agree as follows:

**ARTICLE I** 

**ADVANCES** 

**Section 1.01 <u>Advances</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the terms and subject to the conditions hereinafter set forth, the Lenders shall, severally but not jointly, from time to time prior to the earlier of (i) the occurrence of an Amortization Event or (ii) December 12, 2026 (the "**<u>Revolving Period End Date</u>**"), make loans to the Borrower secured by the Collateral (each such loan, an "**<u>Advance</u>**"); <u>provided</u>, <u>however</u>, <u>that</u>, no such Advance shall cause (a) the aggregate outstanding Loan Amount to exceed the lesser of the Program Limit and the Borrowing Base or (b) the outstanding Loan Amount for any Lender to exceed such Lender's Percentage of the Program Limit. If at any time there is more than one Lender, each such Lender shall lend its Percentage of each requested Advance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, subject to the terms and conditions hereof, from time to time during the Revolving Period, the Lenders may, in their sole and absolute discretion, make Advances requested by the Borrower that would cause the aggregate outstanding Loan Amount to exceed the then applicable Program Limit on such date; <u>provided</u> that, after giving effect to any Advances pursuant to this Section 1.01(b), the aggregate outstanding Loan Amount shall not exceed the Maximum Commitment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower acknowledges and agrees that notwithstanding anything in this Agreement to the contrary, the Borrower shall use the proceeds of each Advance solely to finance the purchase of Eligible Consumer Loans by the Trustee pursuant to the Purchase and Sale Agreement on the date of such Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender that is a party to this Agreement on the Closing Date hereby represents and warrants that it is a Qualified Purchaser.

**Section 1.02 <u>Borrowing Procedures</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Borrowing Request</u>***. Each Advance to be made hereunder shall be requested upon the Borrower's submission to the Administrative Agent of (i) an excel file showing the approximate amount of Pledged Consumer Loans to be added and a computation of the Borrowing Base on a pro forma basis, by no later than **<u>4:00 p.m</u>.** (New York City time) **<u>two</u>** Business Days prior to the requested Borrowing Date, and (ii) a Borrowing Request, substantially in the form of <u>**Exhibit A**</u> (*Form of Borrowing Request*) (each such request, a "**<u>Borrowing Request</u>**") and a Monthly Report which will include (1) a computation of the Borrowing Base, on a pro forma basis, after giving effect to the Advance to be made on the proposed Borrowing Date and (2) an updated Schedule of Pledged Consumer Loans reflecting the information set forth on **<u>Exhibit E</u>** (*Information to be Included in the Schedule of Pledged Consumer Loans*) for each Consumer Loan that is to be acquired or otherwise funded with the proceeds of such Advance, by no later than **<u>5:00</u> <u>p.m.</u>** (New York City time) **one** Business Day prior to the requested Borrowing Date, and the Administrative Agent shall promptly transmit such Borrowing Request and Monthly Report to each Lender. Up to **<u>three</u>** Advances will be permitted during any given week. Each Borrowing Request shall specify (A) the amount requested to be advanced by the Lenders (which amount shall be in a minimum amount of), (B) the proposed Borrowing Date, and (C) that all prerequisite conditions for the making of such Advance have been, or will be, satisfied. Each Borrowing Request shall be accompanied by the Schedule of Pledged Consumer Loans (or *pro forma* supplement thereto) that provides all applicable information required by such schedule with respect to each Consumer Loan that is to be acquired or otherwise funded with the proceeds of such Advance. Each such Borrowing Request shall be deemed to be a request by the Borrower to each Lender to fund such Lender's Percentage of the requested Advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Funding</u>***. On each Borrowing Date, upon satisfaction of the applicable conditions set forth in **<u>Article V</u>** (*Conditions of Borrowings*) below, and subject to **<u>Section</u> 1.01** (*Advances*) above, the Lenders shall disburse their respective Percentages of such Advance in U.S. Dollars and immediately available funds to the Administrative Agent no later than **<u>1:00 p.m.</u>** (New York City time) on the Borrowing Date, and the Administrative Agent will disburse such funds to the Seller Deposit Account, or such other account approved by the Administrative as set forth on the Borrowing Request on behalf of the Borrower.

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**Section 1.03 <u>Grant of Security Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower hereby grants to the Administrative Agent, for the benefit of the Secured Parties, a valid, perfected and continuing first priority (subject to Liens permitted by this Agreement) lien and security interest in all right, title and interest of the Borrower in, to and under the Collateral, whether now owned or existing or hereafter acquired or arising. Such lien and security interest shall secure all of the Borrower's Obligations to the Secured Parties (monetary or otherwise) hereunder and under the other Transaction Documents to which the Borrower is a party, including, without limitation, the payments on the Note, the payment of all Indemnified Amounts, and the obligation of the Borrower to cause the Servicer to remit all Collections, if any, for deposit into the Collection Account (such secured obligations are hereinafter sometimes collectively referred to as the "**<u>Secured Obligations</u>**"). The Administrative Agent hereby accepts the foregoing grant of a security interest in the Collateral, and agrees to hold such security interest for the benefit of the Secured Parties pursuant to the terms of this Agreement. This Agreement constitutes a security agreement within the meaning of the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties acknowledge and agree that the foregoing grant of a security interest includes a collateral assignment to the Administrative Agent, for the benefit of the Secured Parties, of all of the Borrower's right, title and interest in, to and under the Servicing Agreement and the other Transaction Documents to which the Borrower is a party, and the Borrower agrees that the Administrative Agent (on behalf of the Secured Parties) has the right, at any time after the occurrence and during the continuance of an Event of Default, to give or withhold consents, directions, demands, extensions or waivers (in each case, on behalf of the Borrower) under or with respect to, and the right to take such actions necessary to maintain in full force and effect, the Servicing Agreement and the other Transaction Documents, in each case to the extent applicable to the Pledged Consumer Loans and the other Collateral. In furtherance of the foregoing, the Borrower hereby grants to the Administrative Agent a power of attorney to be used at any time, in the Administrative Agent's sole discretion following the occurrence and during the continuance of an Event of Default, to act in the Borrower's name and on the Borrower's behalf with respect to such matters set forth above in this **<u>Section 1.03(b)</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower acknowledges that the foregoing grant of a security interest in the Collateral is intended to grant a security interest in all of the Borrower's assets (except to the extent expressly excluded in the definition of Collateral). The Borrower hereby irrevocably authorizes the Administrative Agent at any time and from time to time to file in any filing office in any UCC jurisdiction any initial financing statements and amendments (including continuation statements) thereto that (a) indicate the Collateral (i) as all assets of the Borrower or words of similar effect, regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC, or (ii) as being of an equal or lesser scope or with greater detail, and (b) provide any other information required by part 5 of Article 9 of the UCC for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Borrower is an organization, the type of organization and any organizational identification number issued to the Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To secure the payment and performance of the Secured Obligations, Trustee, at the direction of Borrower, hereby grants to Administrative Agent, for the benefit of itself and the other Secured Parties, a valid, perfected and continuing first priority (subject to Liens permitted by this Agreement) Lien upon all of Trustee's right, title, and interest, whether now owned or existing or hereafter from time to time acquired or coming into existence, in, to, and under all of the Trust's assets, including: (i) all of the Trust's interests in Pledged Consumer Loans and all amounts due or to become due from or on behalf of each Obligor under each Pledged Consumer Loan, (ii) the Purchase and Sale Agreement, the Servicing Agreement and the Back-up Servicing Agreement and all rights, remedies, powers, privileges, and claims under those contracts, (iv) all of the Trust's Accounts, General Intangibles, Chattel Paper, Instruments, Documents, Goods, money and any rights to the payment of money or other forms of consideration of any kind, deposit accounts, investment property, letters of credit, Letter-of-Credit Rights, Contract Rights, Contracts, Supporting Obligations, Equipment, Inventory, Fixtures, Computer Hardware, Software, securities, Permits, intellectual property, and oil, gas and other minerals, (v) all other personal property and other types of property of the Trust, including all of the books and records of the Trust and (vi) all Proceeds of all of the foregoing and all other types of property of the Trust (collectively, the "**<u>Trust Collateral</u>**"). Capitalized terms in clauses (iv) and (vi) above shall have the meaning assigned to such terms in the UCC.

**ARTICLE II** 

**THE FACILITY** 

**Section 2.01 <u>Note</u>**. The Advances of the Lenders shall be evidenced by a promissory note upon request by the Lenders (as from time to time supplemented, extended, amended or replaced, the "**<u>Note</u>**"), and to be substantially in the form set forth in **<u>Exhibit B</u>** (*Form of Note*) and dated as of the Closing Date, with additional appropriate insertions to be made on each Borrowing Date, payable to the order of the Administrative Agent, on behalf of the Lenders, in the maximum principal amount equal to the Program Limit (or, if less, in the aggregate unpaid principal amount of all of the Advances made by the Lenders) on the Final Maturity Date or such other earlier date(s) as is specified herein. The aggregate Loan Amount shall be paid from time to time as set forth in **<u>Sections 2.03</u>** (*Repayments and Prepayments*) and **<u>3.03</u>** (*Distributions from the Collection Account*). The Administrative Agent, on behalf of the Lenders, shall record in its records the date and amount of each Advance made hereunder, each repayment thereof, and other information it deems appropriate. The Loan Amount so recorded shall be presumptive evidence of the principal amount owing and unpaid on the Note. The failure to record any such information or any error in so recording any such information shall not, however, limit or otherwise affect the actual obligations of the Borrower hereunder or under the Note to repay the Loan Amount, together with all interest accruing thereon, as set forth in this Agreement.

**Section 2.02 <u>Interest on Advances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Interest Rates</u>***. Each Advance shall accrue interest for the period from and including the Borrowing Date of such Advance to but excluding the date such Advance shall be paid in full at a *per annum* rate equal to the Interest Rate for such Advance for the Interest Period therefor, which interest shall be payable as set forth in **<u>Section 2.02(b)</u>** (*Interest Settlement Dates*) below, based upon calculations performed by the Administrative Agent; <u>provided</u>, <u>however</u>, <u>that</u> (i) as provided in **<u>Section 8.01</u>** (*Amortization Events)*, for any day while an Amortization Event

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exists (other than an Amortization Event caused by **<u>Section 8.01(f))</u>**, if so designated by the Administrative Agent, by notice in writing to the Borrower, the rate of interest on the Advances shall be a *per annum* rate equal to the Amortization Rate, and (ii) subject to **<u>Section 8.03</u>** (*Remedies upon an Event of Default*) below, for any day while an Event of Default exists, if so designated by the Administrative Agent, by notice in writing to the Borrower, the rate of interest on the Advances shall be a *per annum* rate equal to the Default Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Interest Settlement Dates</u>***. Except as otherwise expressly provided herein, interest accrued on the Loan Amount shall be paid on each Settlement Date and the Final Maturity Date.

**Section 2.03 <u>Repayments and Prepayments</u>**. The Borrower shall repay in full the Loan Amount on the Final Maturity Date. In addition, the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall, subject to **<u>clause (c)</u>** below and without requiring the prior consent of the Lenders or the Administrative Agent, on any Settlement Date or on the closing date of any Permitted Release pursuant to **<u>Section 12.15</u>** (*Permitted Releases*) below on which the Loan Amount exceeds the Borrowing Base after giving effect to payments to be made on the related Settlement Date pursuant to **<u>Section 3.03(a)</u>** (*Distributions Prior to an Amortization Event, an Event of Default, or the Final Payout Date*) below, prepay the Loan Amount in an amount equal to such excess;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) may, if any Affected Party requests compensation under **<u>Section 4.02</u>** (*Increased Costs; Capital Adequacy*) below or if the Borrower is required to pay additional amounts to any Affected Party or any Governmental Authority for the account of any Affected Party pursuant to **<u>Section 2.06</u>** (*Taxes*) below, on any Business Day within 30 days of such event, by giving at least five Business Days' prior written notice to the Administrative Agent and the related Lender, make a voluntary prepayment in whole (but not in part) of the outstanding principal amount of, plus accrued and unpaid interest on, such Lender's outstanding Advances together with all other amounts due and owing to such Lender under the Transaction Documents; provided, however, that, notwithstanding anything to the contrary, all such amounts shall be paid solely to such Lender and shall not be allocated to any other Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) may, on any Settlement Date on which the Loan Amount exceeds the Borrowing Base, after giving effect to payments to be made on the related Settlement Date pursuant to **<u>Section 3.03(a)</u>** (*Distributions Prior to an Amortization Event, an Event of Default, or the Final Payout Date*) below, in lieu of (or in addition to) making any prepayment in accordance with **<u>Section 2.03(a)</u>** above to cure such excess, contribute additional Included Consumer Loans in an amount such that the Borrowing Base shall equal or exceed the Loan Amount, upon such contribution, such Included Consumer Loans shall be Collateral hereunder without any further action by the Administrative Agent or the Lenders; <u>provided</u> that, immediately prior to and immediately after giving effect to such contribution, (i) no Amortization Event or Event of Default exists, and (ii) each of the representations, warranties, covenants and agreements made or deemed to be made by the Borrower or the Trustee under or in connection with this Agreement and/or the Transaction Documents to which they are parties, is true and correct in all material respects as of such Settlement Date; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) may prepay the Obligations in whole or in part on any Business Day after the Closing Date and prior to the Final Maturity Date; <u>provided</u> that, immediately prior to and immediately after giving effect to such prepayment, (i) no Amortization Event or Event of Default exists, and (ii) each of the representations, warranties, covenants and agreements made or deemed to be made by each of the Borrower or the Trustee under or in connection with this Agreement and/or the Transaction Documents to which they are parties, is true and correct in all material respects as of such Settlement Date. The applicable Obligations to be prepaid as provided in this Section **<u>2.03(d)</u>** (*Repayments and Prepayments*) shall include, without limitation, (i) all or some of the outstanding Advances made prior to such prepayment date, plus (ii) accrued and unpaid interest on all such Advances being prepaid on such prepayment date, plus (iii) any unpaid fees, expenses and indemnities required to be paid by Borrower under this Agreement and all other unpaid Obligations (other than indemnity obligations of Borrower under the Loan Documents that are not then due and payable or for which any events or claims that would give rise thereto are not then pending) in relation to such Obligations to be prepaid on the prepayment date. The Borrower shall give the Administrative Agent and the Collateral Agent written notice of the proposed prepayment not less than five (5) Business Days in advance of the proposed prepayment date.

Each of the foregoing repayments and prepayments, as applicable, shall be deposited into the Collection Account and be immediately applied by the Administrative Agent in accordance with **<u>Section 3.03</u>** (*Distributions from the Collection Account*).

Upon the Administrative Agent's receipt of a prepayment of the Loan Amount pursuant to this **<u>Section 2.03</u>** related to any Pledged Consumer Loan that is subject to a Permitted Release in accordance with **<u>Section 12.15</u>** (*Permitted Releases*) below, (i) all right, title and interest of the Administrative Agent, on behalf of the Secured Parties, in, to and under such Pledged Consumer Loan shall terminate and revert to the Borrower, its successors and assigns and (ii) thereafter such Pledged Consumer Loan shall not constitute Collateral. The Administrative Agent and the Lenders agree and acknowledge that no releases of financing statements or other recorded evidence of the right, title and interest of the Administrative Agent, on behalf of the Secured Parties, shall be necessary to effect the release thereof; <u>provided</u>, <u>however</u>, that, the Administrative Agent shall promptly authorize the filing of any such releases of financing statements and take such actions as may be reasonably requested by the Borrower to evidence termination of the Lien created hereby with respect to the Pledged Consumer Loans released pursuant to this **<u>Section 2.03</u>** at the Borrower's sole expense. The Borrower, each Lender, the Administrative Agent and the Servicer, as the case may be, shall inform the other parties to this Agreement promptly, in writing, upon the discovery of any event that would give rise to a prepayment obligation pursuant to this **<u>Section 2.03</u>**. For the avoidance of doubt, all prepayments pursuant to this Agreement shall be subject to the payment of any Breakage Costs as set forth in **<u>Section 4.03</u>** (*Funding Indemnification*) below, except for any payments and prepayments in connection with a Permitted Release.

**Section 2.04 <u>General Procedures</u>**. The Loan Amount shall not be considered reduced by any allocation, setting aside or distribution of any portion of Collections unless such Collections shall have been actually delivered to the Administrative Agent for the purpose of paying such principal. No principal or interest shall be considered paid by any distribution of any portion of Collections if at any time such distribution is rescinded or must otherwise be returned for any reason. No provision of this Agreement shall require the payment or permit the collection of interest in excess of the maximum permitted by applicable law.

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**Section 2.05 <u>Characterization of Note</u>**. The Borrower and the Lenders agree to treat the Note for federal, state and local income and franchise tax purposes, and for book purposes, as indebtedness.

**Section 2.06 <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Defined Terms</u>***. For purposes of this **<u>Section 2.06</u>**, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Payments Free of Taxes</u>***. Any and all payments by or on account of any obligation of the Borrower under any Transaction Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of the applicable Borrower) requires the deduction or withholding of any Tax from any such payment by the Borrower, then the Borrower shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this **<u>Section 2.06</u>**) the applicable Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Payment of Other Taxes by the Borrower</u>***. The Borrower shall timely pay to the relevant Governmental Authority, in accordance with applicable law, or at the option of the Administrative Agent, timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Indemnification by the Borrower</u>***. The Borrower shall indemnify each Lender and the Administrative Agent within ten days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this **<u>Section 2.06</u>**) payable or paid by such Lender or the Administrative Agent or required to be withheld or deducted from a payment to such Lender or the Administrative Agent and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Lender (with a copy to the Administrative Agent) or by the Administrative Agent on its own behalf or on behalf of a Lender, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Indemnification by the Lenders</u>***. Each Lender shall severally indemnify the Administrative Agent, within **<u>ten</u>** days after demand therefor, for (i) any Indemnified Taxes attributable to such Lender (but only to the extent that the Borrower has not already indemnified the Administrative Agent for such Indemnified Taxes and without limiting the obligation of the Borrower to do so), (ii) any Taxes attributable to such Lender's failure to comply with the provisions of **<u>Section 9.01</u>** (*Assignments*) below relating to the maintenance of the Register or Participant Register, and (iii) any Excluded Taxes attributable to such Lender, in each case, that are payable or paid by the Administrative Agent in connection with any Transaction Document, and any reasonable expenses arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to any Lender by the Administrative Agent shall be conclusive absent manifest error. Each Lender hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Transaction Document or otherwise payable by the Administrative Agent to the Lender from any other source against any amount due to the Administrative Agent under this **<u>Section 2.06(e)</u>**.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***<u>Evidence of Payments</u>***. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this **<u>Section 2.06(e)</u>**, the Borrower (which, in the case of the Trust, shall be the Program Manager on behalf of the Trust) shall deliver to the Lenders the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ***<u>Status of Lenders</u>***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each Lender, if entitled to an exemption from or reduction of withholding Tax with respect to payments made
under any Transaction Document, shall deliver to the Borrower and the Administrative Agent, at the time or times reasonably requested by the Borrower or the Administrative Agent, such properly completed and executed documentation reasonably
requested by the Borrower or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, each Lender, if reasonably requested by the Borrower or the Administrative Agent,
shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent to determine whether or not such Lender is subject to
backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in  **<u>Section 2.06(g)(ii)(A), (ii)(B)</u>** and  **<u>(ii)(D</u>)** below) shall not be required if in such Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed
cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) any Lender that is a U.S. Person shall deliver to the Borrower and the Administrative Agent on or prior to the
date on which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or the Administrative Agent), executed copies of IRS Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the Borrower) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the
Borrower or the Administrative Agent), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a
party (x) with respect to payments of interest under any Transaction Document, executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and
(y) with respect to any other applicable payments under any Transaction Document, IRS Form W-8BEN or IRS Form W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under
Section 881(c) of the Code, (x) a certificate substantially in the form of  **<u>Exhibit L-1</u>** (*Form of Tax Compliance Certificate (Non-Partnership Lenders*)) to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B)
of the Code, or a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code (a "  **<u>U.S. Tax Compliance Certificate</u>**") and (y) executed copies of IRS Form W-8BEN or IRS Form W-8BEN-E; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of  **<u>Exhibit L-2</u>** (*Form of Tax Compliance Certificate (Non- Partnership Participants*)) or  **<u>Exhibit L-3</u>** (*Form of Tax Compliance Certificate (Partnership Participants*)), IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable;  **<u>provided</u>** that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign
Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of  **<u>Exhibit L-4</u>** (*Form of Tax Compliance Certificate (Partnership Lenders*)) on behalf of each such direct and indirect partner;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the Borrower or the Administrative Agent) on or prior to the date on which such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent) executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such
supplementary documentation as may be prescribed by applicable law to permit the Borrower or the Administrative Agent to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) if a payment made to a Lender under any Transaction Document would be subject to U.S. federal withholding Tax
imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrower and the
Administrative Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower or the Administrative Agent such documentation prescribed by applicable law (including as prescribed by
Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower or the Administrative Agent as may be necessary for the Borrower and the Administrative Agent to comply with their obligations under
FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this  **<u>clause (D)</u>** , "FATCA"
shall include any amendments made to FATCA after the date of this Agreement.

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower and the Administrative Agent in writing of its legal inability to do so.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) ***<u>Treatment of Certain Refunds</u>***. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this <u>**Section 2.06**</u> (including by the payment of additional amounts pursuant to this **<u>Section 2.06</u>**), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this **<u>Section 2.06</u>** with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this **<u>paragraph (h)</u>** (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this **<u>paragraph (h</u>)**, in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this **<u>paragraph (h)</u>** the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **<u>Survival</u>**. Each party's obligations under this **<u>Section 2.06</u>** shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Obligations and the repayment, satisfaction or discharge of all obligations under any Transaction Document.

**Section 2.07 <u>Benchmark Replacement Setting</u>**. Notwithstanding anything to the contrary herein or in any other Transaction Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior to any setting of the then-current Benchmark, then (i) if a Benchmark Replacement is determined in accordance with clause (a) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace the then-current Benchmark for all purposes hereunder and under any Transaction Document in respect of such Benchmark setting and subsequent Benchmark settings without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document, and (ii) if a Benchmark Replacement is determined in accordance with clause (b) of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Transaction Document in respect of any Benchmark setting at or after 5:00 p.m. on the fifth Business Day after the date notice of such Benchmark Replacement is provided to the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Transaction Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with the implementation and administration of a Benchmark Replacement, the Administrative Agent will have the right, in consultation with the Borrower, to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Transaction Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent will promptly notify the Borrower and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Benchmark Replacement Conforming Changes. Any determination, decision or election that may be made by the Administrative Agent pursuant to this **<u>Section 2.07</u>**, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent demonstrable error and may be made in its reasonable good faith discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this **<u>Section 2.07</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate (including the Term SOFR Reference Rate) and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Administrative Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is not or will not be representative, then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Administrative Agent may modify the definition of "Interest Period" (or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, (i) the Borrower may revoke any pending request for a SOFR Loan of, conversion to or continuation of SOFR Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to ABR Loans and (ii) any outstanding affected SOFR Loans will be deemed to have been converted to ABR Loans at the end of the applicable Interest Period. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of ABR based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of ABR.

**ARTICLE III** 

**SETTLEMENTS** 

**Section 3.01 <u>Collection Account</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Accounts</u>***. The Program Manager shall establish the Collection Account on or before the Closing Date, which account shall be an account maintained at and segregated on the books and records of the Account Institution in accordance with the Account Control Agreement, dated as of the date hereof, among the Borrower, the Administrative Agent and the Account Institution. The Collection Account shall be subject to the sole dominion and control (as defined

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in Section 8-106 or 9-104, as applicable, of the UCC) of the Administrative Agent, on behalf of the Secured Parties, and neither the Borrower nor the Servicer shall have withdrawal rights therefrom. All amounts in the Collection Account and all investments made with such amounts, including all income and other gains from such investments, shall be held by the Account Institution for the benefit of the Secured Parties as part of the Collateral. On the Final Payout Date, upon the Account Institution's receipt of notice from the Administrative Agent that all Secured Obligations have been paid in full, any funds remaining in the Collection Account shall be released to the Borrower or its designee and control over the Collection Account shall revert to the Borrower. The Administrative Agent agrees to provide such notice promptly following the Final Payout Date and the payment in full of all Secured Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Investments</u>***. If the Collection Account is a securities account, amounts in the Collection Account shall be invested and reinvested by the Administrative Agent in Eligible Investments as directed in writing by the Program Manager. Absent direction from the Program Manager, amounts in the Collection Account shall remain uninvested. Any income or other gains realized from such Eligible Investments invested through funds from the Collection Account shall be deposited by the Administrative Agent in the Collection Account on or prior to the last day of the Collection Period in which they were received and shall be deemed to constitute a portion of the Available Funds for the related Settlement Date. Subject to the foregoing sentence and the other provisions of this Agreement, any Investment Earnings shall be for the account of the Borrower and the Borrower agrees to report as its income for financial reporting and tax purposes (to the extent reportable) any Investment Earnings on amounts in the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Lenders Not Liable</u>***. Neither the Administrative Agent nor any Lender shall in any way be held liable by reason of any insufficiency in the Collection Account resulting from losses on any investments made in the Collection Account in accordance with **<u>Section</u> 3.01(b)** (*Investments*) above, if applicable.

**Section 3.02 <u>Collection of Moneys and the Collection Account</u>**. The Program Manager shall cause the deposit of, or direct the Servicer to deposit, any net Collections into the Collection Account as required by the terms of the Servicing Agreement. If, at any time, any of the Borrower, the Trustee or any Affiliate of the Borrower or the Trustee shall receive any Collections, such Person shall hold such Collections for the benefit of the Secured Parties and, upon identification thereof, shall segregate such Collections from the other property of such Person and shall, within two Business Days after receipt and identification thereof, deliver such Collections in the form received (endorsed as necessary for transfer) to the Servicer for deposit in the Collection Account.

**Section 3.03 Distributions from the Collection Account**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Distributions Prior to an Amortization Event, an Event of Default, or the Final Payout Date</u>.*** Along with the delivery of a Monthly Report, the Program Manager shall submit to the Administrative Agent a notice via electronic mail indicating the Program Manager's determination of how the Available Funds with respect to the related Settlement Date should be applied on such Settlement Date in accordance with Section 3.03 (such notice, which shall be in substantially the form attached hereto as **<u>Exhibit K</u>** (the "*Reconciliation E-Mail*"). The Administrative Agent shall use commercially reasonable efforts to respond to each Reconciliation

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E-Mail by the end of the Business Day following the Administrative Agent's receipt thereof (the "*Response E-Mail*") which response shall state whether the Administrative Agent agrees with the Reconciliation E-Mail (which agreement (i) shall not be deemed to be an agreement by any Lender as to the accuracy of the information contained therein and (ii) shall not constitute a waiver, amendment or impairment of, or otherwise affect, any rights of any Lender under this Agreement). If the Response E-Mail states the Administrative Agent's agreement with the Program Manager's determination set forth in the Reconciliation E-Mail, the Available Funds for each Settlement Date, prior to the occurrence of an Amortization Event, an Event of Default, or the Final Payout Date, on deposit in the Collection Account on such Settlement Date shall be disbursed by the Account Institution from the Collection Account and applied on such Settlement Date in the following order of priority:

<u>first</u>, to each of the Trustee and the Account Institution, any accrued and unpaid fees and any other amounts due and owing to each of the Trustee and the Account Institution on such date; *provided*, that the cumulative fees, expenses and other payments payable to the Account Institution pursuant to this clause shall be limited to a total of in the aggregate in each calendar year;

<u>second</u>, to (i) the Back-Up Servicer and the Verification Agent, an amount sufficient to pay the Back-Up Servicer's Fee and the Verification Agent Fee with respect to the preceding Collection Period, *pro rata*, in proportion to the amount owed to each such Person in accordance with this Agreement and the other Transaction Documents on such date; plus any due and accrued expenses and indemnities payable to the Back-Up Servicer and the Verification Agent; *provided*, that the cumulative expenses and other payments payable to the Back-Up Servicer and the Verification Agent pursuant to this clause shall be limited to a total of on each Settlement Date and (ii) any Transition Costs;

<u>third</u>, to the Servicer, an amount equal to the Servicing Compensation and any other fees payable to the Servicer pursuant to Section 3.06 of the Servicing Agreement (or Section 4.01 of the Successor Servicing Agreement) with respect to the preceding Collection Period; plus, in the case of the successor Servicer, due and accrued expenses and indemnities payable to the successor Servicer under the Successor Servicing Agreement; *provided*, that the cumulative expenses and other payments payable to the Servicer pursuant to this clause shall be limited to a total of on each Settlement Date;

<u>fourth</u>, an amount equal to all interest accrued at the applicable Interest Rate in respect of the Loan Amount for the related Interest Period (including any adjustments made pursuant to the proviso to **<u>Section 2.02(a)</u>** (*Interest Rates*) above and any accrued and unpaid amounts) shall be paid to the Administrative Agent, for distribution to each Lender on such date, pro rata, in proportion to the amount of accrued interest owed to each Lender;

<u>fifth</u>, the Unused Fee due and owed on such Settlement Date shall be paid to the Administrative Agent for distribution to each Lender on such date, pro rata pursuant to their respective portion of the Loan Amount;

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<u>sixth</u>, the Principal Payment Amount shall be paid to the Administrative Agent, for distribution to each Lender, *pro rata*, based on the Loan Amount held by such Lender, to be applied to the reduction of the Loan Amount on such date;

<u>seventh</u>, an amount equal to any other amounts due and owing to the Administrative Agent, each Lender, any Affected Party, any Indemnified Party, or any Secured Party pursuant to this Agreement or the other Transaction Documents shall, in each case, be paid to the Administrative Agent, for distribution to each Lender, such Affected Parties, such Indemnified Parties, or such Secured Parties, as the case may be, *pro rata*, in proportion to the amount owed to each such Person in accordance with this Agreement and the other Transaction Documents on such date;

<u>eighth</u>, an amount equal to any other amounts due and owing to the Trustee, the Account Institution, the Servicer, the Verification Agent or the Back-Up Servicer pursuant to this Agreement or the other Transaction Documents, *pro rata*, in proportion to the amount owed to each such Person in accordance with this Agreement and the other Transaction Documents on such date; and

<u>ninth</u>, to the lenders under the Subordinated Loan Agreement, amounts due to such lenders pursuant to the Subordinated Loan Agreement; and

<u>tenth</u>, so long as no Amortization Event or Event of Default shall have occurred and be continuing or would result from the release of any remaining amounts, any such remaining amounts may, at the Borrower's election, (i) be released to the Borrower or its designee, (ii) distributed to Sponsor in respect of its membership interest in the Borrower which distribution shall be allocated first to the amount of the Retained Interest described in Section 6.05 or (iii) be applied to the reduction of the related Loan Amount on such date.

If the Administrative Agent does not agree with the terms in the Reconciliation E-Mail, the Administrative Agent will notify the Program Manager regarding its comments and the parties will then discuss the appropriate terms. Once the Administrative Agent and the Program Manager have agreed to the terms regarding the application of such Available Funds, the Program Manager shall submit a revised Reconciliation E-Mail with respect to the application of the Available Funds, and the Available Funds for such Settlement Date shall be disbursed by the Account Institution from the Collection Account and applied on such Settlement Date in the order of priority set forth in this **<u>Section 3.03(a).</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Distributions Following an Amortization Event or an Event of Default, or on the</u> Final Payout Date***. On the Final Payout Date or following the designation of an Amortization Event or an Event of Default, along with the delivery of a Monthly Report, the Program Manager shall submit to the Administrative Agent a Reconciliation E-Mail. The Administrative Agent shall use commercially reasonable efforts to deliver the Response Email by the end of the Business Day following the Administrative Agent's receipt thereof, which response shall state whether the Administrative Agent agrees with the Reconciliation E-Mail (which agreement (i) shall not be deemed to be an agreement by any Lender as to the accuracy of the information contained therein and (ii) shall not constitute a waiver, amendment or impairment of, or otherwise affect, any rights of any Lender under this Agreement). If the Response E-Mail states the Administrative Agent's agreement with the Program Manager's determination set forth in the Reconciliation E-Mail, the Available Funds for each Settlement Date on deposit in the Collection Account on such Settlement Date shall be disbursed by the Account Institution from the Collection Account and applied on such Settlement Date in the following order of priority:

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<u>first</u>, to each of the Trustee and the Account Institution, any accrued and unpaid fees and any other amounts due and owing to each of the Trustee and the Account Institution;

<u>second</u>, to the Back-Up Servicer and the Verification Agent, an amount sufficient to pay the Back-Up Servicer's Fee, any Transition Costs and the Verification Agent Fee with respect to the preceding Collection Period plus any other expenses and indemnities payable to the Back-Up Servicer or Verification Agent, *pro rata*, in proportion to the amount owed to each such Person in accordance with this Agreement and the other Transaction Documents on such date;

<u>third</u>, to the Servicer, an amount equal to the Servicing Compensation and any other fees payable to the Servicer pursuant to Section 3.06 of the Servicing Agreement and in the case of the Successor Servicer, any expenses and indemnities due and payable to the successor Servicer with respect to the preceding Collection Period;

<u>fourth</u>, an amount equal to all interest accrued at the applicable Interest Rate in respect of the Loan Amount for the related Interest Period (including any adjustments made pursuant to the proviso to **<u>Section 2.02(a)</u>** (*Interest Rates*) above and any accrued and unpaid amounts) shall be paid to the Administrative Agent, for distribution to each Lender on such date, pro rata, in proportion to the amount of accrued interest owed to each Lender;

<u>fifth</u>, all remaining amounts shall be paid to the Administrative Agent, for distribution to each Lender, *pro rata*, based on the Loan Amount held by such Lender, to be applied to the reduction of the Loan Amount to zero on such date;

<u>sixth</u>, an amount equal to any other amounts due and owing to the Administrative Agent, each Lender, any Affected Party, any Indemnified Party, any Secured Party, the Trustee, the Account Institution, the Servicer, the Verification Agent or the Back-Up Servicer pursuant to this Agreement or the other Transaction Documents shall, in each case, be paid to the Administrative Agent, for distribution to each applicable party, as the case may be, *pro rata*, in proportion to the amount owed to each such Person in accordance with this Agreement and the other Transaction Documents on such date; and

<u>seventh</u>, all remaining amounts, if any, may, at the Borrower's election, (i) be released to the Borrower or its designee or (ii) distributed to Sponsor in respect of its membership interest in the Borrower which distribution shall be allocated first to the amount of the Retained Interest described in Section 6.05 and, on the Final Payout Date, control over and ownership of the Collection Account shall revert to the Borrower.

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If the Administrative Agent does not agree with the terms in the Reconciliation E-Mail, the Administrative Agent will notify the Program Manager regarding its comments and the parties will then discuss the appropriate terms. Once the Administrative Agent and the Program Manager have agreed to the terms regarding the application of such Available Funds, the Program Manager shall submit a revised Reconciliation E-Mail with respect to the application of the Available Funds, and the Available Funds for such Settlement Date shall be disbursed by the Account Institution from the Collection Account and applied on such Settlement Date in the order of priority set forth in this **<u>Section 3.03(b)</u>.**

**Section 3.04 <u>Payments and Computations, Etc</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Payments</u>***. All amounts to be paid or deposited by the Borrower to the Administrative Agent hereunder shall be paid or deposited in accordance with the terms hereof no later than<u>**2:00 p.m**.</u> (New York City time) on the day when due in U.S. Dollars in same day funds, to the Administrative Agent's Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Late Payments</u>***. The Borrower shall, to the extent permitted by law and subject to **<u>Section</u> 2.04** (*General Procedures*) above, pay interest to the Lenders on all amounts not paid when due at the Default Rate, in each case payable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Method of Computation</u>***. All computations of interest hereunder shall be calculated by the Administrative Agent on the basis of a year of 360 days, for actual days elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Lenders' Reliance</u>***. In making the investments, deposits, distributions and calculations required to be made by it hereunder, the Administrative Agent and the Lenders shall be entitled to rely on information supplied to it by the Borrower. Neither the Administrative Agent nor any Lender shall in any way be held liable for any incorrect investments, deposits, distributions or calculations made by it hereunder as a result of any errors contained in, or omissions from, information supplied to it by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Inability to Determine Rates</u>***. Subject to **<u>Section</u> 2.07** (*Benchmark Replacement Setting*) if, on or prior to the first day of any Interest Period for any SOFR Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Administrative Agent determines (which determination shall be conclusive and binding absent demonstrable
error) that "Term SOFR" cannot be determined pursuant to the definition thereof, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Required Lenders determine that for any reason in connection with any request for a SOFR Loan or a
conversion thereto or a continuation thereof that Term SOFR for any requested Interest Period with respect to a proposed SOFR Loan does not adequately and fairly reflect the cost to such Lenders of making and maintaining such Loan, and the Required
Lenders have provided notice of such determination to the Administrative Agent,

then, in each case, the Administrative Agent will promptly so notify the Borrower and each Lender.

Upon notice thereof by the Administrative Agent to the Borrower, any obligation of the Lenders to make SOFR Loans, and any right of the Borrower to continue SOFR Loans or to convert ABR Loans to SOFR Loans, shall be suspended (to the extent of the affected SOFR Loans or affected Interest Periods) until the Administrative Agent (with respect to clause (ii), at the instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, (i) the Borrower may

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revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans (to the extent of the affected SOFR Loans or affected Interest Periods) or, failing that, the Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to ABR Loans in the amount specified therein and (ii) any outstanding affected SOFR Loans will be deemed to have been converted into ABR Loans at the end of the applicable Interest Period. Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted. Subject to **<u>Section</u> 2.07**, if the Administrative Agent determines (which determination shall be conclusive and binding absent demonstrable error) that "Term SOFR" cannot be determined pursuant to the definition thereof on any given day, the interest rate on ABR Loans shall be determined by the Administrative Agent without reference to clause (c) of the definition of "ABR" until the Administrative Agent revokes such determination.

**Section 3.05 <u>Release of Funds from Collection Account; Corrected Monthly Reports</u>.** In the event that any Monthly Report contains mistakes, the Borrower will provide a corrected report within three Business Days after becoming first aware or being notified of such mistakes. To the extent that any amounts were released to the Borrower from the Collection Account on any Settlement Date based on an inaccurate Monthly Report, the Borrower hereby agrees (1) that such amounts which the Borrower was not entitled to receive on such Settlement Date constitute proceeds of Collateral which were improperly received by the Borrower and (2) to deposit available funds into the Collection Account, within three Business Days after the Borrower first becomes aware or has been provided notice of such mistakes, in an amount equal to any funds that were released to the Borrower in reliance on such inaccurate Monthly Report (and that would not have been released to the Borrower on such Settlement Date pursuant to an accurate Monthly Report) such that the aggregate amount of funds retained by the Borrower is equal to the aggregate amount of funds that would have been released to the Borrower had such Monthly Report been accurate.

**ARTICLE IV** 

**FEES AND YIELD PROTECTION** 

**Section 4.01 <u>Fees</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Upfront Fee</u>***. On or prior to the Closing Date, the Borrower agrees to pay to the Administrative Agent, for distribution to the Lenders, *pro rata*, in accordance with their respective Percentages, the Upfront Fee. The Upfront Fee shall be non-refundable, fully-earned and due and payable, in full, on the Closing Date. On each Borrowing Date, the Borrower shall pay an additional Upfront Fee (if any) in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Unused Fee</u>***. The Borrower agrees to pay the Unused Fee to the Administrative Agent, for distribution to the Lenders, pro rata, in accordance with their respective Percentages. The Unused Fee shall be due and payable on each Settlement Date, through and including the Settlement Date immediately following the Revolving Period End Date.

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**Section 4.02 <u>Increased Costs; Capital Adequacy</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Regulatory Change (i) subjects any Affected Party to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in **<u>clauses (b)</u>** through **<u>(d)</u>** of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto, (ii) imposes, modifies or deems applicable any reserve, assessment, fee, insurance charge, special deposit or similar requirement (other than Taxes) against assets of, deposits with or for the account of, or liabilities of an Affected Party, or credit extended by an Affected Party pursuant to this Agreement or (iii) imposes any other condition (other than Taxes), the result of which is to increase the cost to an Affected Party of performing its obligations under this Agreement, or to reduce the rate of return on an Affected Party's capital as a consequence of its obligations under this Agreement, or to reduce the amount of any sum received or receivable by an Affected Party under this Agreement, or to require any payment calculated by reference to the amount of interests or loans held or interest received by it, then, upon written demand by any Lender accompanied by the certificate described in **<u>Section 4.02(b)</u>** below, the Borrower shall pay to such Lender, for the benefit of the relevant Affected Party, such amounts charged to such Affected Party or such amounts to otherwise compensate such Affected Party for such increased cost or such reduction. The term "**<u>Regulatory Change</u>**" shall mean (i) the adoption after the date hereof of any applicable law, rule or regulation (including any applicable law, rule or regulation regarding capital adequacy) or any change therein after the date hereof or (ii) any change after the date hereof in the interpretation or administration thereof by any Governmental Authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency; **<u>provided</u>** that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Regulatory Change", regardless of the date enacted, adopted or issued. In determining whether such additional amount or amounts are owed, each Lender will treat Borrower in the same manner it treats other similarly situated borrowers in facilities with similar assets in other similar transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Lender determines that any Regulatory Change affecting such Lender or any lending office of such Lender or such Lender's holding company, if any, regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Lender's capital or on the capital of such Lender's holding company, if any, as a consequence of this Agreement, such Lender's Percentage of the Program Limit or the Advances made by such Lender to a level below that which such Lender or such Lender's holding company could have achieved but for such Regulatory Change (taking into consideration such Lender's policies and the policies of such Lender's holding company with respect to capital adequacy) or results in the imposition of an internal liquidity charge on such Lender or such Lender's holding company, then from time to time the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender or such Lender's holding company for any such reduction or charge suffered. In determining whether such additional amount or amounts are owed, each Lender will treat Borrower in the same manner it treats other similarly situated borrowers in facilities with similar assets in other similar transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A certificate of the applicable Affected Party setting forth the amount or amounts necessary to compensate such Affected Party pursuant to **<u>Section 4.02(a)</u>** or **<u>(b)</u>** shall be delivered to Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Affected Party the amount due on any such certificate on the next Settlement Date following receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any Affected Party requests compensation under **<u>Section 4.02</u>** (*Increased Costs; Capital Adequacy*) above or if the Borrower is required to pay additional amounts to any Affected Party or any Governmental Authority for the account of any Affected Party pursuant to **<u>Section 2.06</u>** (*Taxes*) above, then the Borrower may (A) request such Lender use reasonable efforts to designate a different lending office for funding or booking its Loan hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to this Section 4.02 in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender, or (B), at its sole expense and effort, (i) prepay the Loan Amount applicable to such Affected Party, or (ii) upon notice to such Affected Party, require the Affected Party to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, **<u>Section 9.01</u>** (*Assignments*) below), all of its interests, rights (other than its existing rights to payments pursuant to **<u>Section 2.06</u>** (*Taxes*) or this **<u>Section 4.02</u>**) and obligations under this Agreement and the related Transaction Documents to an assignee designated by the Borrower that shall assume such obligations (which assignee may be another Affected Party, if such other Affected Party accepts such assignment); **<u>provided</u>** that no such assignment shall be required or effective unless and until all of the Borrower's obligations to the assigning Affected Party hereunder and other any other Transaction Document, including any amounts demanded under this **<u>Section</u> 4.02** or **<u>Section 2.06</u>** (*Taxes*) above (as applicable), shall have been paid in full.

**Section 4.03 <u>Funding Indemnification</u>**. If an Advance is not made on the date requested by the Borrower in any Borrowing Request for any reason other than a failure by a Lender to deposit funds in accordance with **<u>Section 1.02(b)</u>** (*Funding*) above, then the Borrower shall indemnify the Lenders for any Breakage Cost related to such proposed Advance. If any prepayment of any Advance other than in connection with a Permitted Release (whether such payment or prepayment is voluntary, mandatory, automatic, by reason of acceleration, or otherwise) results in any Breakage Cost, then the Borrower shall pay and indemnify the applicable Lender for the Breakage Cost related to such prepayment.

**ARTICLE V** 

**CONDITIONS OF BORROWINGS** 

**Section 5.01 <u>Closing Date Conditions Precedent</u>**. The effectiveness of this Agreement and the obligations of the parties hereto are subject to the conditions precedent that the Administrative Agent shall have received or waived receipt of the following on or prior to the Closing Date (unless otherwise noted):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a copy of this Agreement and each of the other Transaction Documents identified on the closing list attached as **<u>Exhibit C</u>** (*Closing List*) hereto, in each case duly executed by each party thereto, and each other item identified on such closing list;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for each Credit Party, a list of such Credit Party's officers who are authorized to act on behalf of such Credit Party pursuant to the Transaction Documents, together with incumbency signatures therefor, duly certified by the secretary or assistant secretary of such Credit Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a copy of the resolutions or consents of the board of directors or other governing body of each Credit Party authorizing the transactions contemplated hereby, certified by the secretary or assistant secretary of such Credit Party, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) evidence that the Collection Account has been established;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) financing statements on Form UCC1 or amendments thereto naming the Borrower as debtor and the Administrative Agent as secured party in proper form for filing in the office in which the filings are necessary or, in the reasonable opinion of the Administrative Agent, desirable under the UCC or any comparable law of all appropriate jurisdictions to perfect the security interest of the Administrative Agent granted in **<u>Section 1.03</u>** (*Grant of Security Interest*) above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) search reports provided in writing to the Administrative Agent by the applicable filing offices, listing all effective financing statements that name any of the Trustee, the Trust or the Borrower as debtor and that are filed in the jurisdiction in which the Trustee, the Trust or the Borrower, as applicable, is "located" as defined in Section 9-307 of the UCC, together with copies of such financing statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) copies of all filed UCC termination statements and amendments necessary to ensure that the Administrative Agent has a first priority perfected security interest in the Collateral (subject to Liens permitted by this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) evidence that all fees and expenses then due hereunder and presented to the Borrower shall have been paid in full unless specific written arrangements for the payment of such fees, expenses or other payments at a later date shall have been made;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) usual and customary legal opinions in form and substance satisfactory to the Administrative Agent and its counsel (including, but not limited to, those regarding corporate matters, enforceability, Investment Company Act, non-consolidation and security interest perfection);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) since June 30, 2025, there shall not have occurred a Material Adverse Change in any Credit Party, and no event or circumstance has occurred, which has had, or is reasonably likely to have, a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) evidence that each of the conditions precedent to the execution, delivery and effectiveness of all documentation, including all Transaction Documents has been satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the representations and warranties of the Borrower and the Trustee contained in the Transaction Documents are true and correct in all material respects (except for such representations and warranties as are qualified by materiality or any similar qualifier, which such representations and warranties are true and correct in all respects) on and as of such day as though made on and as of such day and shall be deemed to have been made on such day (unless the same explicitly relates solely to an earlier date, in which case, such representations and warranties are true and correct in all material respects (except for such representations and warranties as are qualified by materiality or any similar qualifier, which such representations and warranties are true and correct in all respects) as of such earlier date).

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**Section 5.02 <u>Conditions Precedent to All Advances</u>**. Each Advance shall be subject to the further conditions precedent that on the date of such Advance the following statements shall be true (and will be true immediately after using the proceeds of such Advance for the purpose or purposes for which such proceeds were borrowed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representations and warranties of the Borrower and the Trustee contained in the Transaction Documents are true and correct in all material respects (except for such representations and warranties as are qualified by materiality or any similar qualifier, which such representations and warranties are true and correct in all respects) on and as of such day as though made on and as of such day and shall be deemed to have been made on such day (unless the same explicitly relates solely to an earlier date, in which case, such representations and warranties are true and correct in all material respects (except for such representations and warranties as are qualified by materiality or any similar qualifier, which such representations and warranties are true and correct in all respects) as of such earlier date), including, for the avoidance of doubt, that all Consumer Loans being acquired with the proceeds of such Advances are Eligible Consumer Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each of the Transaction Documents identified on the closing list attached as Exhibit C are in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each Credit Party is in compliance in all material respects with all applicable terms, covenants and agreements contained in the Transaction Documents to which such Credit Party is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no event has occurred and is continuing, or would result from such Advance that constitutes an Event of Default, Amortization Event or Servicer Event of Default, and no event has occurred that, but for the passage of time, would become an Event of Default, Amortization Event or Servicer Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Loan Amount will not exceed the Borrowing Base immediately after giving effect to such Advance and the Administrative Agent shall have received a Monthly Report showing a calculation of each of the Loan Amount and the Borrowing Base both immediately before and after giving effect to such proposed Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Administrative Agent shall have received a duly executed and completed Borrowing Request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Administrative Agent shall have received acknowledgment of releases or termination statements on Form UCC3 and any other documents necessary to evidence or release any security interest (other than any security interest permitted by this Agreement or the other Transaction Documents) in the Consumer Loans to be acquired with the proceeds of such Advance, to the extent required for any such prior security interest to be terminated;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Administrative Agent shall have received from the Borrower, no later than 11:00 a.m., (New York City time) on the applicable Borrowing Date, an updated Schedule of Pledged Consumer Loans and other information required to be provided with respect to such Pledged Consumer Loans pursuant to this Agreement, or a supplement thereto, that includes all applicable information required to be included on such schedule with respect to each Consumer Loan that is to be acquired or otherwise funded with the proceeds of such Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Consumer Loan Files have been delivered to the Servicer in accordance with the Servicing Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) all fees and other amounts (including costs, expenses and indemnified amounts) then due and billed or otherwise known by the Borrower to be payable to the Administrative Agent and the Lenders shall have been paid in full (or will be paid concurrently with the proceeds of such Advance); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) on or after the Closing Date there shall not have occurred and be continuing a Material Adverse Change in any Credit Party, and no event or circumstance has occurred which has had, or is reasonably likely to have, a Material Adverse Effect with respect to such Person.

**ARTICLE VI** 

**REPRESENTATIONS AND WARRANTIES** 

**Section 6.01 <u>Representations and Warranties of Borrower and the Program Manager</u>.** Each of the Borrower and the Program Manager represents and warrants to the Administrative Agent and the Lenders as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Organization, Corporate Powers</u>***. Such Person is an entity, duly organized and validly existing solely under the laws of the State of its organization, is in good standing under the laws of the State of its organization, has all necessary power to carry on its present business, is duly licensed or qualified in all jurisdictions where the nature of its activities require such licensing or qualifying, except where the failure to be so licensed or qualified would not have a Material Adverse Effect, and has full power, right and authority to enter into this Agreement, the other Transaction Documents to which it is a party and the transactions contemplated hereby and thereby, and to perform its obligations herein and therein provided for.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Authority, Binding Obligation</u>***. The execution, delivery and performance by such Person of this Agreement and the other Transaction Documents to which it is a party and the transactions contemplated hereby and thereby have been duly authorized by all necessary action and this Agreement and such other Transaction Documents constitute the legal, valid and binding obligations of such Person enforceable against such Person in accordance with their terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization or other laws affecting creditors' rights generally and general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Compliance with Laws and Contracts</u>***. (i) The execution, delivery and performance by such Person of this Agreement and the other Transaction Documents to which such Person is a party do not and will not (w) conflict with, result in any material breach of any of the terms and provisions of, nor constitute (with or without notice of lapse of time or both) a violation of the certificate of incorporation, by-laws, certificate of formation, limited liability company agreement, certificate of partnership, or limited partnership agreement (or such similar

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organizational documents) of such Person, (x) violate any material provision of any law, rule, regulation, order, writ, judgment, injunction, decree, determination or award to which such Person or its property is subject, (y) result in a material breach of or constitute a material default under the provisions of any indenture, loan or credit agreement or any other material agreement, lease or instrument to which such Person is a party or by which it, or its property, is bound or (z) result in, or require, the creation or imposition of any Lien on or with respect of any of the properties of such Person other than the Lien in favor of the Administrative Agent, for the benefit of the Secured Parties, provided herein or therein; (ii) such Person is in compliance in all material respects with each such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or any such indenture, loan or credit agreement, other agreement, lease or instrument, except to the extent the failure to comply therewith, either individually or in the aggregate, would not be reasonably expected to have a Material Adverse Effect; and (iii) such Person is not in default under any such indenture, loan or credit agreement or other agreement with respect to which such default, either individually or in the aggregate with other defaults, would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Governmental Approvals</u>***. Such Person has obtained all authorizations, consents, approvals, exemptions of or filings or registrations with, and has provided all notices to, all governmental commissions, regulatory bodies, boards, bureaus, agencies and instrumentalities, domestic or foreign, necessary to the conduct of its business or necessary to the valid execution, delivery and performance by such Person of this Agreement and the other Transaction Documents to which such Person is a party (the "**<u>Approvals</u>**") other than any Approvals the absence of which would not reasonably be expected to have a Material Adverse Effect, and such Approvals remain in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Litigation</u>***. There is no action, suit, proceeding, inquiry or investigation at law or in equity or before or by any court, public board or body pending or, to the knowledge of such Person, overtly threatened in writing against or affecting such Person (x) asserting the invalidity of this Agreement or any other Transaction Document, (y) seeking to prevent the consummation of any of the transactions contemplated by this Agreement and the other Transaction Documents or (z) which is reasonably likely to have or give rise to an unfavorable decision, ruling or finding that would have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***<u>Employee Benefit Plans</u>***. Neither the Borrower nor any of its ERISA Affiliates sponsors, maintains or contributes to or has any liability with respect to, or within the past six years has sponsored, maintained, contributed to or has incurred any liability with respect to, any "employee benefit plans" (as such term is defined in section 3(3) of ERISA) that are subject to Title IV of ERISA or the minimum funding standards under Sections 412, 430, 432 or 436 of the Code or Sections 302, 303, 304 or 305 of ERISA ("**<u>Benefit Plans</u>**") that would result in a Material Adverse Effect. In addition, neither the Borrower nor the Trust is (i) a "benefit plan investor" (as such term is defined in section 3(42) of ERISA) nor (ii) a governmental, church, non-U.S. or other plan which is subject to any federal, state, local or non-U.S. law that would subject such Person to any law, rule or regulation substantially similar to the provisions of section 406 of ERISA or section 4975 of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ***<u>Accuracy of Information</u>***. Neither this Agreement nor any other Transaction Document to which such Person is a party, nor any certificate or written report (including, in the case of the Borrower, any Monthly Report, as the same may be corrected pursuant to **<u>Section 3.05</u>** (*Release of Funds from Collection Account; Corrected Monthly Reports*) above) furnished to any Lender or the Administrative Agent by or on behalf of such Person in connection herewith contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein and therein not misleading; it being understood that solely to the extent any data included in such a certificate or statement has been provided by a Person that is not a Credit Party or an Affiliate of a Credit Party, such Person makes this representation and warranty to the best of its knowledge; **<u>provided</u>** that notwithstanding any such representation being made to the best of the applicable representing party's knowledge, a material breach thereof shall constitute a default that will become an Event of Default unless cured within the applicable time frame.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) ***<u>Tax Status</u>***. Such Person has filed all U.S. federal and material state and local tax returns required to be filed by it and has paid or made adequate provision for the payment of all U.S. federal and material state and local taxes, assessments and other governmental charges unless (a) such tax or assessment is being actively contested in good faith and adequate reserves have been established therefor in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ***<u>Program Requirements</u>***. No material changes have been made to the terms of the Program Requirements set forth in **<u>Exhibit I</u>** (*Program Requirements*), other than those which have been disclosed to and consented to by the Administrative Agent in writing in accordance with the terms of this Agreement. For the avoidance of doubt, any change as it relates to the pricing of the credit tiers as outlined in the Program Requirements shall not be construed as a material change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) ***<u>Not an Investment Company</u>***. Such Person is not required to register as an "investment company" or a company controlled by an "investment company" within the meaning of the Investment Company Act of 1940, as amended (the "**<u>Investment Company Act</u>**"). The Borrower is relying upon the exemption from the definition of "investment company" contained in Section 3(c)(7) of the Investment Company Act in making such conclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) ***<u>Margin Regulations</u>***. The use of all funds obtained by the Borrower under this Agreement will not conflict with or contravene any of Regulation T, U or X promulgated by the Board of Governors of the Federal Reserve Board from time to time. No proceeds of any Advance will be used, directly or indirectly, by the Borrower for the purpose of purchasing or carrying any Margin Stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System) or for the purpose of reducing or retiring any indebtedness that was originally incurred to purchase or carry Margin Stock or for any other purpose which might cause any Advance to be a "purpose credit" within the meaning of Regulation U.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) ***<u>Borrower Information</u>***. The chief place of business and chief executive office of the Borrower are located at the address of the Borrower referred to in **<u>Section 12.02</u>** (*Notices, Etc.*) below, and the offices where the Borrower keeps all its books, records and documents relating to the Pledged Consumer Loans are located at the addresses specified in **<u>Schedule 6.01(l)</u>** (*Borrower Information*) or at such other locations, notified to the Administrative Agent in accordance with **<u>Section 7.01(f)</u>** (*Location*) below, in jurisdictions where all action necessary to maintain the Administrative Agent's first priority perfected security interest (subject to Liens permitted by this

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Agreement), for the benefit of the Secured Parties, in the Collateral has been taken and completed), it being understood that the Servicer keeps the Consumer Loan Files relating to the Pledged Consumer Loans at its office. The exact legal name of the Borrower is set forth on the signature page hereof. The Borrower's (or if the Borrower is a disregarded entity for U.S. federal income tax purposes, its sole beneficial owner's) tax identification number is 39-2749274. Except as provided on **<u>Schedule 6.01(l)</u>** (*Borrower Information*), the Borrower has not changed its name, changed its corporate structure, changed its jurisdiction of organization, changed its chief place of business/chief executive office or used any name other than its exact legal name at any time during the past five years. The Location of the Borrower is Delaware.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) ***<u>Capital of the Borrower</u>***. The Borrower is Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) ***<u>Prior Business Activity</u>***. The Borrower has no business activity except as contemplated in this Agreement and the other Transaction Documents and upon the date hereof is not party to any other debt, financing or other material transaction or agreement other than the Transaction Documents and its constitutive documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) ***<u>Subsidiaries</u>***. Other than the Trust, the Borrower has no subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) ***<u>Indebtedness</u>***. The Borrower has not incurred, created or assumed any Indebtedness except for that arising under or expressly permitted by this Agreement or the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) ***<u>Ordinary Course of Business</u>***. Each payment of interest and principal on the Advances will have been (i) in payment of a debt incurred in the ordinary course of business or financial affairs on the part of the Borrower and (ii) made in the ordinary course of business or financial affairs of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) ***<u>No Default</u>***. The Borrower is not in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in, and is not otherwise in default under (i) any Requirements of Law, (ii) any judgment, decree, writ, injunction, order, award or other action of any court or governmental authority or arbitrator or any order, rule or regulation of any federal, state, county, municipal or other governmental or public authority or agency having or asserting jurisdiction over it or any of its properties or (iii) (x) any indebtedness or any instrument or agreement under or pursuant to which any such indebtedness has been, or could be, issued or incurred or (y) any other instrument or agreement to which it is a party or by which it is bound or any of its properties is affected, including, without limitation, the Transaction Documents, that either individually or in the aggregate, has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) ***<u>No Material Adverse Effect</u>***. No Material Adverse Effect in any Credit Party (other than the Borrower) has occurred since June 30, 2025], and no event or circumstance has occurred since the date of the Borrower's formation which has had, or is reasonably likely to have, a Material Adverse Effect with respect to such Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) ***<u>Sanctions; OFAC; AML</u>***. None of the Borrower, any of its subsidiaries, any director or officer, or any employee, agent, or Affiliate, of the Borrower or any of its subsidiaries is a Person that is, or is owned or controlled by Persons that are, (i) the target or subject of any sanctions administered or enforced by the US Department of the Treasury's Office of Foreign Assets Control ("**<u>OFAC</u>**"), the US Department of State, the US Department of Commerce, the United Nations Security Council, the European Union, His Majesty's Treasury, the Hong Kong Monetary Authority (collectively, "**<u>Sanctions</u>**"), or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions, including, without limitation, currently, the Crimea region, Cuba, Iran, North Korea, Syria and Venezuela. No part of the proceeds of the Advances will be used, directly or indirectly, for any payments (i) to fund or facilitate any money laundering or terrorist financing activities or business; or (ii) in any other manner that would cause or result in violation of the Patriot Act. To the best of the Borrower's knowledge, after due inquiry, the Collateral does not include any asset that results from, or may cause or result in, a violation of any applicable anti-money laundering laws, rules or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) ***<u>Sanctions; FCPA</u>***. None of the Borrower, nor to the knowledge of the Borrower, any director, officer, agent, employee, Affiliate or other person acting on behalf of the Borrower or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons of (i) any Sanctions or (ii) any applicable anti-bribery law, including but not limited to, the United Kingdom Bribery Act 2010 (the "**<u>UK Bribery Act</u>**"), or the U.S. Foreign Corrupt Practices Act of 1977 (the "**<u>FCPA</u>**"). Furthermore, the Borrower and, to the knowledge of the Borrower, its Affiliates have conducted their businesses in compliance with Sanctions, the UK Bribery Act, the FCPA, and similar laws, rules or regulations and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

**Section 6.02 <u>Additional Representations and Warranties</u>**. The Borrower represents and warrants to the Administrative Agent and the Lenders as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Perfected Security Interest</u>***. (i) Each Pledged Consumer Loan, including the related original Consumer Loan Note, is owned by the Trustee free and clear of any Lien other than the Lien created hereby and Liens permitted by this Agreement, and (ii) such Pledged Consumer Loan has not been changed, altered, supplemented, amended, or otherwise modified without the prior written consent of the Administrative Agent. All other Collateral is owned by the Borrower or the Trustee free and clear of any adverse claim, judgment or Lien other than the Lien created hereby. Except for the filing of the financing statements as described in **<u>Section 1.03(c)</u>** above and the entering into of the Account Control Agreement, no further action, including any filing or recording of any document, is necessary in order to establish and perfect the first priority security interest (subject to Liens permitted by this Agreement) of the Administrative Agent, for the benefit of the Secured Parties, in the Collateral as against any third party in any applicable jurisdiction, including, without limitation, any purchaser from, or creditor of, the Borrower or the Trust. No financing statement or other instrument similar in effect covering any of the Collateral or any interest therein is on file in any recording office except such as may be filed (i) in connection with any Lien arising solely as the result of any action taken by the Administrative Agent or a Lender (or any assignee thereof), (ii) in favor of the Administrative Agent, (iii) for which UCC termination statements or partial release statements satisfactory to the Administrative Agent have been filed (copies of which, along with any other documents necessary to evidence the release of all security interests (other than that of the Administrative Agent) in such Consumer Loan, to the extent required for all such prior security interests to be terminated, have been delivered to the Administrative Agent) or (iv) in connection with the release of any Collateral

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pursuant to the terms of this Agreement. Other than the filing of financing statements described in **<u>clauses (i)</u>** through **<u>(iii)</u>** of the immediately preceding sentence and any necessary amendments and continuations thereof, no consent of any other Person and no authorization, approval, or other action by, and no notice to or filing with, any Governmental Authority is required (x) for the pledge by the Borrower or the Trustee of the Collateral pursuant to this Agreement, (y) for the perfection or maintenance of the security interest created hereby (including the first priority nature of such security interest, subject to Liens permitted by this Agreement) or (z) for the exercise by the Administrative Agent of the rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Eligible Consumer Loans</u>***. Each Pledged Consumer Loan was, at the time of acquisition by the Trustee, an Eligible Consumer Loan and if designated as an "Included Consumer Loan" in a Monthly Report, Schedule of Pledged Consumer Loans or Borrowing Request, was an Eligible Consumer Loan on the relevant date as set forth in such Monthly Report, Schedule of Pledged Consumer Loans or Borrowing Request, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Acquisition of Consumer Loans</u>***. With respect to each Pledged Consumer Loan, the Trustee acquired such Pledged Consumer Loan from the Seller pursuant to the Purchase and Sale Agreement in exchange for payment to the Seller of an amount which constitutes fair market value, fair consideration and reasonably equivalent value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>No Other Purchases</u>***. The Trustee on behalf of the Trust has not purchased any Consumer Loan other than pursuant to the Purchase and Sale Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Payments</u>***. Any payments which have been allocated to the repayment of principal of or interest on the Pledged Consumer Loans have been applied as required by the applicable Consumer Loan Note or as otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***<u>Schedule</u>***. The information contained in each of the "Material Fields" designated as such on **<u>Exhibit E</u>** (*Information to be Included in the Schedule of Pledged Consumer Loans*), appearing in any Schedule of Pledged Consumer Loans delivered to the Administrative Agent by any Credit Party is complete, true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ***<u>Servicing</u>***. Each Pledged Consumer Loan is being serviced in accordance with the provisions of the Servicing Agreement.

**Section 6.03 <u>Representations of the Trustee</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Due Organization, Licensing and Qualification</u>***. The Trustee is duly organized and validly existing under the laws of the United States of America and has all licenses and qualifications necessary to carry on its business as is then being conducted. The Trustee is in compliance with the laws of any state to the extent necessary to ensure the enforceability of the terms of this Agreement and its ability to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Due qualification</u>***. The Trustee is duly qualified to do business in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions where the failure to do so would materially and adversely affect the performance of its obligations under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Power and Authority</u>***. The Trustee has the power and authority to execute and deliver this Agreement on behalf of the Trust and to carry out the terms hereof; and the execution, delivery and performance of this Agreement have been duly authorized by the Trustee by all necessary action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Binding Obligation</u>***. This Agreement shall constitute the legal, valid and binding obligation of the Trustee enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors' rights generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>No Violation</u>***. The execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement, and the fulfillment of the terms hereof, shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time, or both) a default under, the certificate of formation or other organizational document of the Trustee, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Trustee is a party or by which it is bound, or result in the creation or imposition of any lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement, or violate any law, order, rule or regulation applicable to the Trustee of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Trustee or any of its properties.

**Section 6.04 <u>Patriot Act</u>**. To the extent applicable, the Borrower, the Trustee, the Trust, the Limited Guarantors and the Sponsor (1) are not persons whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (b) have not engaged in any dealings or transactions prohibited by Section 2 of such executive order, and is not any such person in any manner violative of Section 2 of such executive order, (c) are not persons on the list of Specially Designated Nationals and Blocked Persons, and (d) are not subject to the limitations or prohibitions under any other U.S. Department of Treasury's Office of Foreign Assets Control regulation or executive order; (2) are in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT Act of 2001) (the "**<u>Patriot Act</u>**"). No part of the proceeds of the Advances will be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended to the date hereof and from time to time hereafter, and any successor statute.

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**Section 6.05 <u>EU Risk Retention</u>**. While the Advances are outstanding, Sponsor will retain on an ongoing basis, as "originator" (for the purposes of the EU Securitisation Regulation), a net economic interest in the securitization constituted by the Transaction Documents in an amount at least equal to of the nominal value of the Pledged Consumer Loans in the form of a first loss tranche (the "**<u>Retained Interest</u>**"), by holding directly or indirectly, all of the membership interests of the Borrower, which membership interests represent the residual interest of the Borrower in the Pledged Consumer Loans that is released to the Borrower pursuant to clause ninth of Section 3.03(a) or pursuant to clause seventh of Section 3.03(b) and an exposure to the transaction of at least of the nominal value of each of the securitized exposures that ranks subordinate to the credit risk that the Lenders are exposed to in respect of the Pledged Consumer Loans. The Retained Interest shall be measured as of the Closing Date, the last day of each Collection Period and each Determination Date. For this purpose, (i) the amount of the Retained Interest from time to time shall equal the sum of (A) the excess of the Aggregate Included Consumer Loan Balance over the aggregate outstanding Loan Amount, plus (B) the excess of the aggregate nominal values of the Pledged Consumer Loans over the Aggregate Included Consumer Loan Balance, and (ii) the aggregate nominal values of the Pledged Consumer Loans shall be calculated without deduction for or on account of any Consumer Loan having become a Defaulted Consumer Loan after the purchase date under the Purchase and Sale Agreement pursuant to which it was acquired by the Trustee. The method of retention will be in the form as described in Article 6(3)(d) of the EU Securitisation Regulation, which form will not change and which retention will not be subject to any credit risk mitigation or any other hedge and will not be sold, transferred or otherwise surrendered, except as permitted by the EU Securitisation Regulation. Sponsor was not established for, and does not operate for, the sole purpose of securitizing exposures. The Sponsor acknowledges its obligations under Article 9 the EU Securitisation Regulation: (i) in the case of each Eligible Consumer Loan for which the Sponsor, directly or indirectly, is involved in the original agreement which creates such asset, it applies the same sound and well-defined criteria for credit granting which it applies to non-securitised exposures; and (ii) in respect of each Eligible Consumer Loan for which the Sponsor or its related entities, directly or indirectly, was not involved in the original agreement which created such asset, it will, verify to the extent required pursuant to Article 9(3) of the EU Securitisation Regulations that the entity which was, directly or indirectly, involved in the original agreement which created such asset, has applied to the asset the same sound and well-defined criteria for credit-granting that such entity applies to its non-securitised exposures, in each case as is effective at the time of the creation of such Eligible Consumer Loan.

**ARTICLE VII** 

**COVENANTS** 

**Section 7.01 <u>Affirmative Covenants of the Borrower, the Program Manager and the Trustee</u>**. From the date hereof until the Final Payout Date, the Borrower, the Program Manager and the Trustee shall, unless the Administrative Agent shall otherwise consent in writing, covenant as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Compliance with Laws, Etc</u>***. The Borrower and the Trustee shall comply with all applicable federal, state and local laws, rules, regulations, licensing standards and orders, including those with respect to the Pledged Consumer Loans except to the extent the failure to comply therewith, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Preservation of Existence</u>***. The Borrower shall preserve and maintain its existence as a Delaware limited partnership. Each of the Borrower and the Trustee shall preserve and maintain its rights, franchises and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing as a foreign corporation in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises, privileges and qualification would be reasonably expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Audits</u>***. Upon reasonable prior written notice and during regular business hours, the Borrower shall permit (or cause to be permitted) the Administrative Agent or any of its agents or representatives (i) to examine and make copies of and abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of the Borrower relating to the Collateral or the Trustee's acquisition of Consumer Loans, (ii) to visit the offices and properties of the Borrower for the purpose of examining such materials described in **<u>clause (i)</u>** above, and to discuss matters relating to Pledged Consumer Loans or the Borrower's, the Seller's or the Servicer's performance under the Transaction Documents with any of the officers, directors, employees or independent public accountants of the Borrower having knowledge of such matters and (iii) to complete an agreed upon procedures audit covering such items and procedures as may be agreed upon among the Borrower and the Administrative Agent and such additional items and procedures as may be reasonably requested by the Administrative Agent with respect to all Pledged Consumer Loans; **<u>provided</u>** that except following the occurrence and during the continuation of an Event of Default, the Lender's examination, visit and audit rights under this **<u>Section</u> 7.01(c)** shall be limited to one such examination, visit, or audit in each year. All reasonable costs related to any visit and examination pursuant to this **<u>Section</u> 7.01(c)** shall be borne by the Borrower and shall, so long as no Event of Default has occurred and is continuing, be subject to a cap of .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Keeping of Records and Books of Account</u>***. The Borrower shall note on its books and records that the Pledged Consumer Loans have been acquired by the Trustee and pledged to the Administrative Agent, on behalf of the Secured Parties, maintain and implement (or cause to be maintained and implemented) administrative and operating procedures (including, without limitation, an ability to recreate records evidencing the Pledged Consumer Loans in the event of the destruction of the originals thereof), and keep and maintain, or cause to be kept and maintained, all documents, books, records and other information reasonably necessary or advisable for the collection of all of the Pledged Consumer Loans (including records adequate to permit the daily identification of each new Pledged Consumer Loan included in the Collateral from time to time and all Collections of, payments on and adjustments to, each existing Pledged Consumer Loan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Performance and Compliance with Consumer Loans</u>***. At its expense, each of the Borrower and the Trustee shall timely and fully perform and comply with all provisions, covenants and other promises required to be observed by it under the Transaction Documents to which the Borrower or the Trustee is a party, the failure to perform or comply with which would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***<u>Location</u>***. Each of the Borrower and the Trustee shall keep its Location at the Location identified in **<u>Schedule 6.01(l)</u>** or, upon **30** days' prior written notice to the Administrative Agent, at such other Location where all actions required to maintain the Administrative Agent's first priority perfected security interest, for the benefit of the Secured Parties, in the Collateral shall have been taken and completed (subject to Liens permitted by this Agreement).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ***<u>Transaction Documents; Enforcement</u>***. Each of the Program Manager and the Trustee shall maintain in effect the Servicing Agreement (for so long as Pledged Consumer Loans are serviced thereunder) and perform its respective obligations under the Servicing Agreement, the Verification Agent Agreement, the Back-Up Servicing Agreement, and the Account Control Agreement (or, in each case a replacement agreement reasonably acceptable to the Administrative Agent) and diligently and promptly enforce its rights, and the obligations of the other parties thereunder. Without limitation to the foregoing, the Program Manager shall ensure that the Verification Agent delivers to the Administrative Agent each Verification Certificate required to be delivered by the Verification Agent in accordance with the terms of the Verification Agent Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) ***<u>Servicer Delegation</u>***. For so long as any Obligations (other than contingent indemnification obligations for which demand has not been made) remain outstanding, neither the Program Manager nor the Trustee shall, to the extent it has the right to control such matters under the terms of the Servicing Agreement, permit any material outsourcing or delegation of servicing responsibilities with respect to Pledged Consumer Loans under any Servicing Agreement without the prior written consent of the Administrative Agent, except as otherwise provided herein, <u>provided</u> <u>that</u>, for the avoidance of doubt, no such consent of the Administrative Agent shall be required for the outsourcing or delegation by the Servicer of collection activities on Defaulted Consumer Loans to a Collection Agent (as defined in the Servicing Agreement). In addition, at all times, each of the Program Manager and the Trustee shall maintain in effect the Back-Up Servicing Agreement or a replacement back-up servicing agreement reasonably acceptable to the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ***<u>Servicer Events of Default; Replacement Servicers</u>***. If a Servicer Event of Default shall have occurred with respect to the Servicer, or the Servicing Agreement shall not be in full force and effect for any reason, each of the Trustee or the Borrower, as applicable, shall terminate the Servicer and appoint a successor servicer, each in accordance with the terms of the Servicing Agreement. The Borrower shall not terminate the Servicer without the prior consent or authorization of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) ***<u>Separate Business</u>***. Except as provided herein, the Borrower shall, at all times:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (y) maintain financial reports and financial statements (to the extent prepared with respect to the Borrower),
books and records and bank accounts separate from those of any other Person or entity and (z) not permit any other Person (other than the Administrative Agent, on behalf of the Secured Parties) independent access to the Borrower's bank
accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not commingle the Borrower's funds and other assets with those of any other Person or entity (other than
any such commingling expressly permitted by this Agreement and the other Transaction Documents);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) file its own tax returns, if any, as may be required under applicable law, to the extent not part of a
consolidated group filing a consolidated return or returns or not treated as a division or a disregarded entity for tax purposes of another taxpayer, and pay any U.S. federal and material state and local required to be paid by it under applicable
law, other than (a) taxes being actively contested in good faith with respect to which adequate reserves have been established in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to have
a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) conduct the Borrower's business in its own name and hold all of the Borrower's assets in its own
name and in such a manner that it will not be costly or difficult to segregate, ascertain or identify the Borrower's individual assets from those of any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) remain Solvent and pay its debts and liabilities (including employment and overhead expenses) from its assets
as the same become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) observe procedural formalities (including the separateness provisions contained in the Borrower's
organizational documents), and preserve the Borrower's existence as a single-purpose, bankruptcy-remote entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) enter into transactions with Affiliates only if each such transaction is commercially reasonable and on
substantially similar terms as a transaction that would be entered into on an arm's-length basis with a Person other than an Affiliate of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) compensate each of its consultants and agents from its own funds for services provided to it and pay from its
own assets all obligations of any kind incurred;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) not (y) acquire or hold obligations or securities of any Affiliate other than the Credit Parties or
(z) buy or hold any evidence of indebtedness issued by any other Person or entity, other than Eligible Investments and Consumer Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) allocate fairly and reasonably and pay from its own funds the cost of (y) any overhead expenses (including
paying for any office space) shared with any Affiliate of the Borrower and (z) any services (such as asset management, legal and accounting) that are provided jointly to the Borrower and one or more of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) except as arising under or expressly permitted by this Agreement or any other Transaction Documents, to not
incur, create or assume any Indebtedness and not make any loans or advances to, or pledge its assets for the benefit of, any other Person or entity;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) be, and at all times hold itself out to the public as, a legal entity separate and distinct from any other
Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) correct any misunderstanding regarding the separate identity of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) not identify the Borrower as a division or part of any of its Affiliates or any other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) not engage, directly or indirectly, in any business other than the actions required or permitted to be
performed under Section 2 of the limited partnership agreement of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) not amend, modify or otherwise change its organizational documents, or suffer the same to be amended, modified
or otherwise changed in any manner without the prior written consent of the Administrative Agent (such consent not to be unreasonably withheld, conditioned or delayed);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) not guarantee any obligation of any Person, including any Affiliate or become obligated for the debts of any
other Person or hold out its credit as being available to pay the obligations of any other Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) to the fullest extent permitted by law, not engage in any dissolution, liquidation, consolidation, merger, sale
or other transfer of any of its assets outside the ordinary course of the Borrower's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) not form, acquire or hold any subsidiary (whether corporate, partnership, limited liability company or other)
or own any equity interest in any other entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) not own any asset or property other than the Collateral and incidental personal property necessary for the
ownership or operation of the Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) conduct its business and activities in all respects in compliance with the assumptions contained in the legal
opinions of Clifford Chance US LLP dated on or about the Closing Date relating to substantive consolidation issues (the "  **<u>Bankruptcy Opinions</u>** "), unless within  **<u>ten</u>** Business Days of obtaining knowledge or
receiving notice of any non-compliance with such assumptions, it has caused to be delivered to the Lenders a legal opinion of Clifford Chance US LLP (or other counsel reasonably acceptable to the
Administrative Agent) that such non-compliance will not adversely affect the conclusions set forth in the Bankruptcy Opinions.

The Borrower hereby acknowledges that each Lender is entering into the transactions contemplated by this Agreement in reliance upon the Borrower's identity as a legal entity that is separate from any other Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) ***<u>Purchase and Sale Agreement; Enforcement</u>***. The Program Manager shall retain copies of the Purchase and Sale Agreement (including, in each case, all associated assignments and bills of sale). The Program Manager, on behalf of the Trust, shall enforce its rights with respect to (i) all material obligations of the Seller under the Purchase and Sale Agreement and (ii) all other Transaction Documents to which the Seller is a party. Without limitation to the foregoing, the Program Manager, on behalf of the Trust, shall enforce the Seller's obligation to repurchase any Pledged Consumer Loan (i) that was obtained as a result of Verifiable Identity Theft (as defined in the Purchase and Sale Agreement), (ii) that is legally unenforceable due to any of the statements in the representations and warranties of the Seller in Section 4.2 of the Purchase and Sale Agreement not being true and correct as of its related Purchase Date or (iii) in respect of which any of Seller's representations and warranties set forth in Section 4.2 were not true or accurate in any material respect as of the related Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) ***<u>Deposit of Collections</u>***. The Borrower shall deposit (or shall cause to be deposited) all Collections in accordance with the provisions of **<u>Section 3.02</u>** (*Collection of Moneys and the Collection Account*) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) ***<u>Protection and Perfection of Collateral</u>***. The Borrower shall promptly execute and deliver, at its expense, all further instruments and documents, and take all further action necessary, or that the Administrative Agent may reasonably request, in order to maintain the Administrative Agent's first priority perfected security interest in the Collateral for the benefit of the Secured Parties (subject to Liens permitted by this Agreement), and to enable the Administrative Agent, on behalf of the Secured Parties, to exercise or enforce any of its rights and remedies hereunder or under any other Transaction Document. Without limiting the generality of the foregoing, the Borrower shall: (i) authorize and file such financing statements, or amendments (including continuation statements) thereto or assignments thereof, and such other instruments or notices, as may be necessary or appropriate (or as the Administrative Agent may reasonably request); and (ii) mark its master data processing records relating to such Collateral with a numeric code or other appropriate designation evidencing that the Administrative Agent, for the benefit of the Secured Parties, has acquired an interest therein as provided in this Agreement. The Borrower hereby authorizes the Administrative Agent, on behalf of the Borrower, to file one or more financing statements, and amendments (including continuation statements) thereto and assignments thereof, relative to all or any of the Collateral now existing or hereafter arising without the signature of the Borrower where permitted by law. If the Borrower fails to perform any of its agreements or obligations under this **Section 7.01**, the Administrative Agent may (but shall not be required to) itself perform, or cause performance of, such agreement or obligation, and the expenses of the Administrative Agent incurred in connection therewith shall be payable by the Borrower upon the Administrative Agent's demand therefor. For purposes of enabling the Administrative Agent, on behalf of the Secured Parties, to exercise its respective rights described in the preceding sentence and elsewhere in this Agreement, the Borrower hereby authorizes, and irrevocably grants a power of attorney, coupled with an interest, exercisable only after the occurrence and during the continuance of an Event of Default or Servicer Event of Default, to the Administrative Agent and its successors and assigns to take any and all steps in the Borrower's name and on behalf of the Borrower necessary or desirable, in the determination of the Administrative Agent, to collect all amounts due under any and all Pledged Consumer Loans and other Collateral, including, without limitation, (i) endorsing the Consumer Loan Notes to the Administrative Agent or its designee, such that the Administrative Agent or such designee becomes the holder of the Consumer Loan Notes and has the rights and powers of a holder under applicable law, (ii) endorsing the Borrower's name on checks and other instruments representing Collections and (iii) enforcing such Pledged Consumer Loans and other Collateral.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) ***<u>Notice of Material Events</u>***. The Borrower shall inform the Administrative Agent promptly (but in any event within three Business Days after such Person has knowledge of the occurrence of such event) in writing of the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any event or circumstance, including the submission of any claim or the initiation or threat in writing of any
legal process, litigation or administrative or judicial investigation, or rule making or disciplinary proceeding, in each case with respect to the Borrower, which has or would have, if adversely determined, a Material Adverse Effect, including any
material adverse development in any litigation, investigation or proceeding previously disclosed in accordance with this  **<u>clause (i)</u>** ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the commencement of any proceedings by or against any Credit Party under any applicable bankruptcy,
reorganization, liquidation, rehabilitation, insolvency or other similar law now or hereafter in effect or of any proceeding in which a receiver, liquidator, conservator, trustee or similar official shall have been appointed or requested for any
Credit Party or any of their respective assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) (A) any Credit Party that is not under regulatory supervision on the Closing Date being placed under regulatory
supervision, (B) any license, permit, charter, registration or approval material to the conduct of any Credit Party's business being suspended or revoked, or (C) any Credit Party being ordered by a Governmental Authority to cease and
desist any practice, procedure or policy employed by such Credit Party in the conduct of its business, and such cessation would be reasonably likely to have a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the receipt by the Borrower or any of its Affiliates of any subpoena or request for information (a subpoena or
request for information being referred to herein as a "  **<u>Request</u>**") from any federal, state or local government entity, agency or officer thereof, except for Requests (v) arising out of litigation with an Obligor relating
to a single Consumer Loan for which class action status has not been obtained and is not being sought, (w) that would not reasonably be expected to have a Material Adverse Effect, (x) received from the Consumer Financial Protection Bureau
or any state licensing authority in connection with (A) any individual consumer complaints made on the Consumer Financial Protection Bureau's consumer complaint portal, (B) any non-class action
related consumer complaints or (C) any customary, ordinary course of business or routine examinations of any Credit Party that otherwise would not reasonably be expected to have a Material Adverse Effect, and the Borrower's responses in
connection therewith, (y) the giving of such notice of which is prohibited by applicable law or regulation or by the Governmental Authority making such Request or (z) received from a state or federal agency in connection with gathering
information about industry or competitive practices and which is not, in the reasonable opinion of the related Credit Party specifically targeting such Credit Party for enforcement action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) ***<u>Actions with Respect to Bankruptcy Petitions</u>***. The Borrower hereby agrees that it will timely object to all proceedings of the type described in **<u>clause (a)</u>** of the definition of "Event of Bankruptcy" instituted against it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) ***<u>Requests</u>***. With respect to each Request required to be reported to the Administrative Agent pursuant to **<u>clause (v)</u>** of **<u>7.01(p)</u>** (*Notice of Material Events*), the Borrower shall either (a) fully comply with the terms of such Request or (b) serve the Administrative Agent with written notice within **<u>21</u>** days after receipt of such Request that the Borrower intends to object to or otherwise not fully comply with such Request, stating the reason for such objection or non-compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) ***<u>Bills of Sale</u>***. The Program Manager shall send to the Administrative Agent an electronic or physical copy of each duly executed Bill of Sale and Purchased Loan Confirmation (as defined in the Purchase and Sale Agreement) that was delivered pursuant to the Purchase and Sale Agreement promptly following the execution of each such Bill of Sale and Purchased Loan Confirmation but no later than three Business Days following the related Purchase Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) ***<u>EU Reporting Requirements</u>***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) While the Advances are outstanding, the Program Manager, upon written request by the Administrative Agent
(which may be in electronic form) shall use reasonable efforts to, at the Lender's cost, (i) take such further action and provide such information as may be reasonably required by the Lender in order for a Lender to comply with its
obligations under Article 7 of the EU Securitisation Regulation in relation to the Transaction Documents to the extent such information is in its possession or control, and otherwise (ii) cooperate with the Lender's reasonable requests
and to procure such information from the Servicer, **provided that** the Program Manager provides no assurance that the Servicer will be able to, or willing to, provide such information, and, in each case, without breaching a legal or contractual
duty of confidentiality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If (i) an Event of Default has occurred, (ii) there is any material change in the risk
characteristics or performance of the Eligible Consumer Loans or (iii) there is a breach of Sponsor's retention requirements under the EU Securitisation Regulation or Sponsor's representations in Section 6.05, the Program Manager
shall cause the Servicer to include reasonable detail about such event in the Monthly Report.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Program Manager shall, without delay, notify the Administrative Agent following a responsible officer of
the Program Manager obtaining knowledge or receiving notice of the occurrence of any of the following: (i) a material breach of the obligations provided for in the Transaction Documents, including any remedy, waiver or consent subsequently
provided in relation to such a breach; (ii) a change in the structural features that can materially impact the ability of any Credit Party from performing its obligations under the Transaction Documents; and/or (iii) any material amendment
to any Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The Sponsor will use commercially reasonable efforts to provide information that is in its possession but not
otherwise required to be delivered under this Agreement that is reasonably requested by the Administrative Agent to allow the Administrative Agent to comply with its obligations under the EU Securitisation Regulation in respect of the securitization
transaction contemplated by this Agreement.

**Section 7.02 <u>Reporting Requirements</u>**. From the date hereof until the Final Payout Date, the Program Manager shall, or shall cause the Servicer to, unless the Administrative Agent shall otherwise consent in writing, furnish to the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Monthly Report</u>***. On or before each Determination Date, beginning with the Determination Date occurring in January 2026, a Monthly Report with respect to the preceding Collection Period in form and substance mutually agreed to by the Program Manager and the Administrative Agent. For the avoidance of doubt, the Monthly Report will include (1) calculations of the (i) Three Month Average Delinquency Ratio, (ii) Three Month Average Default Ratio, and (iii) Three Month Average Excess Spread Ratio for the prior Collection Period, and (2) an updated Schedule of Pledged Consumer Loans reflecting the information set forth on **<u>Exhibit E</u>** (*Information to be Included in the Schedule of Pledged Consumer Loans*) for all Pledged Consumer Loans as of the end of the most recent Collection Period, certified in writing as true and complete in all material respects by an Authorized Officer of the Program Manager; provided, that, to the extent any financial information regarding any Servicer is included in such Monthly Report or other financial information regarding such Servicer is requested by or provided to the Administrative Agent, Borrower makes no representation thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Quarterly Financial Statements</u>***. As soon as available and in any event within **<u>60</u>** days after the end of each of the first three quarters of each fiscal year of the Borrower, copies of the unaudited consolidated financial statements of the Limited Guarantors, prepared in accordance with GAAP and accompanied by a certificate in the form of **<u>Exhibit J</u>** (*Form of Compliance Certificate*) of an Authorized Officer of the Borrower, which shall certify that such copies are the true and complete copies of the financial statements and that such information fairly presents in all material respects the financial condition of the Borrower as of the date delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Annual Financial Statements</u>***. As soon as available and in any event within **<u>120</u>** days after the end of each fiscal year of the Borrower, copies of the audited consolidated financial statements of the Limited Guarantors prepared in accordance with GAAP, accompanied by an auditor's report, without any material qualification as to scope, of a nationally recognized public accounting firm approved by the Administrative Agent (such approval not to be unreasonably withheld, conditioned or delayed, and the Administrative Agent hereby acknowledging that

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PricewaterhouseCoopers LLP and any other "Big 4 Accounting Firm" is acceptable to the Administrative Agent), any management letters prepared by said accountants and a certificate in the form of **<u>Exhibit J</u>** (*Form of Compliance Certificate*) of an Authorized Officer of the Borrower certifying that such copies are true and complete copies of the financial statements, auditor's report and management letters and that such information fairly presents in all material respects the financial condition of the Borrower as of the date delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Changes in Law</u>***. Promptly after obtaining actual knowledge thereof, written notice of changes in any other law, rule or regulation of the United States or any state or local jurisdiction that would reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Financial Statements and Annual Compliance Audit of the Servicer</u>***. With respect to the Servicer, promptly after receipt thereof, copies of all reports (including audited financial statements, information security reports and annual compliance audit reports, as applicable) and other documents delivered to the Program Manager pursuant to the Servicing Agreement relating to the Servicer's performance or financial condition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***<u>Portfolio Reports</u>***. At least once per month on or before each Settlement Date (or as soon as reasonably practicable in the case of **<u>item (iv)</u>** below), a loan portfolio report of Pledged Consumer Loan portfolio activity and delinquency statistics for the immediately preceding month, segmented by loan type and loan status, including, without limitation, (i) the Principal Balance of each Pledged Consumer Loan as of the end of the most recent Collection Period, (ii) the then current interest rate and monthly payment amount for each Pledged Consumer Loan, (iii) the number of days and amount by which any payment on a Pledged Consumer Loan is delinquent and (iv) any other information with respect to the Pledged Consumer Loans reasonably requested by the Administrative Agent, certified in writing as true and complete by an Authorized Officer of the Borrower; **<u>provided</u>** that, at the Borrower's discretion, any of the information required to be reported under this **<u>Section</u> 7.02(f)** may be included in the Monthly Report and, to the extent so included, shall be deemed to satisfy the related requirement of this subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ***<u>Program Requirements</u>***. Promptly upon any change to the Program Requirements, written notice of such change and a copy of the new Program Requirements.

**Section 7.03 <u>Negative Covenants of the Borrower and Trustee</u>**. From the date hereof until the Final Payout Date, the Borrower and the Trustee (as applicable) shall not, without the prior written consent of the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Sales, Liens, Etc</u>***. Except as otherwise provided in this Agreement, sell, assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Lien upon or with respect to, any Pledged Consumer Loan or other Collateral, or any interest therein, or any account to which any Collections of or payments on any Pledged Consumer Loans or other Collateral are sent, or any right to receive income or proceeds from or in respect of any of the foregoing.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) ***<u>Extension; Termination; Waiver; Amendment and Other Modification</u>***. (i) Extend, terminate, waive, amend or otherwise modify the terms of any Pledged Consumer Loan except (A) in accordance with the express provisions of the Servicing Agreement, including any settlement guidelines set forth in the Servicing Agreement or (B) as may be required by law, (ii) terminate, waive, amend or otherwise modify the terms of or exercise any consent or approval rights under any Transaction Document to which it is a party (other than with the Administrative Agent's' consent), except that, prior to the occurrence and continuance of an Event of Default, such Person may exercise consent and approval rights (but may not, for the avoidance of doubt, amend, supplement or otherwise modify the Servicing Agreement, other than with the Administrative Agent's consent) under the Servicing Agreement, (iii) take or consent to (or permit the Servicer to take or consent to) any other action that impairs the rights of Borrower or any Secured Party to any Collateral or modify, in a manner adverse to any Secured Party, the right of such Secured Party to demand or receive payment under any of the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***<u>Change in Business</u>***. Make any change in the character of its business, which change would reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ***<u>Consolidation, Mergers, Etc</u>***. With respect to the Borrower, to the fullest extent permitted by law, dissolve, liquidate, merge into, or consolidate with, one or more corporations or other entities, or be a party to any transaction involving the transfer of any substantial portion of its assets, revenues or properties to or with any corporation or other Person other than sales of Consumer Loans in accordance with **<u>Section</u> 12.15** (*Permitted Releases*) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ***<u>Use of Proceeds</u>***. Use the proceeds of any Advance for any purpose other than as provided in **<u>Section</u> 1.01**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) ***<u>Servicer Limitations</u>***. Permit, and shall not permit the Servicer to permit any Pledged Consumer Loans to be serviced by any servicer other than the Servicer or pursuant to any servicing agreement (other than the Servicing Agreement or any sub-servicer permitted thereunder) without first obtaining the written consent of the Administrative Agent and in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) ***<u>Payment Instructions</u>***. Change, or permit the Servicer to change, payment instructions to any Obligor other than in accordance with the Servicing Agreement or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) ***<u>ERISA</u>***. Establish, contribute to, become a party to, or otherwise incur any liability with respect to any Benefit Plans that would result in a Material Adverse Effect. In addition, neither the Borrower nor the Trust shall be (i) a "benefit plan investor" (as such term is defined in section 3(42) of ERISA) nor (ii) a governmental, church, non-U.S. or other plan which is subject to any federal, state, local or non-U.S. law that would subject such Person to any law, rule or regulation substantially similar to the provisions of section 406 of ERISA or section 4975 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) ***<u>Borrower's Legal Status</u>***. Without providing at least 30 days' prior written notice to the Administrative Agent and satisfying all other requirements set forth in this Agreement with respect to such action (including all actions required to maintain the Administrative Agent's first priority perfected security interest for the benefit of the Secured Parties in the Collateral, subject to Liens permitted by this Agreement), the Borrower shall not change its name, type of organization, jurisdiction of organization or other legal structure; and following any change of its place of business, chief executive office, any office where it keeps books and records, mailing address or organizational identification number, the Borrower shall provide the Administrative Agent with prompt notice (and in no event later than 30 days) of such change.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) ***<u>Borrower's Business</u>***. The Borrower shall not, (a) Guarantee any obligation of any Person, including any Affiliate; (b) own assets or engage, directly or indirectly, in any business other than the ownership of the assets contemplated by, and actions required or permitted to be performed under, the Transaction Documents; (c) incur, create or assume any Indebtedness not arising under or expressly permitted by this Agreement or any other Transaction Document; (d) make or permit to remain outstanding any loan or advance to, or own or acquire any stock or securities of, any Person, except that the Borrower may acquire Consumer Loans, may invest in those investments permitted under the Transaction Documents and may make any advance required or expressly permitted to be made pursuant to any provision of the Transaction Documents and permit the same to remain outstanding in accordance with such provisions; (e) to the fullest extent permitted by law, engage in any dissolution, liquidation, consolidation, merger, asset sale or transfer of ownership interests other than sales of Consumer Loans, to the extent permitted under **<u>Section</u> 7.03(d)**, and such other activities as are expressly permitted by this Agreement; or (f) form, acquire or hold any subsidiary (whether corporate, partnership, limited liability company or other).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) ***<u>No Dividends or Distributions</u>***. The Borrower will not make (a) any dividend or other distribution, direct or indirect, on account of the membership interests or any other Equity Interests of the Borrower now or hereafter outstanding, or (b) any redemption, retirement, purchase or other acquisition for value, direct or indirect, of the membership interests or any other Equity Interests of the Borrower now or hereafter outstanding; <u>provided</u>, <u>however</u>, <u>that</u> this **<u>Section 7.03(k)</u>** shall not prohibit dividends or distributions from funds released to the Borrower pursuant to clause ninth of **<u>Section 3.03(a)</u>** above or pursuant to clause eighth of <u>**Section 3.03(b)**</u>, or sales, purchases or repurchases, as applicable, of Consumer Loans pursuant to **<u>Section 4.2</u>** of the Purchase and Sale Agreement or **<u>Section 6.03</u>** (*Repurchase upon Breach*) above upon a breach of representation or warranty of the Borrower or the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) ***<u>Program Requirements</u>***. The Borrower shall not consent to any material change to the terms of the Program Requirements set forth in **<u>Exhibit I</u>** (*Program Requirements*), except with the prior written consent of the Administrative Agent. For the avoidance of doubt, any change as it relates to the pricing of the credit tiers as outlined in the Program Requirements shall not be construed as a material change.

**ARTICLE VIII** 

**AMORTIZATION EVENTS; EVENTS OF DEFAULT; REMEDIES** 

[Intentionally Omitted]

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**ARTICLE IX** 

**ASSIGNMENT OF LENDERS' INTERESTS** 

**Section 9.01 <u>Assignments</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement and each Lender's rights and obligations herein (including the Advances) shall be assignable, in whole or in part, by such Lender and its successors and assigns with prompt notice to the Administrative Agent and the Borrower and, so long as no Event of Default, Unmatured Event of Default or Amortization Event exists, such Lender shall obtain the Borrower's written consent (not to be unreasonably withheld, conditioned or delayed) prior to any such assignment unless such assignment is to the Administrative Agent, a third-party collateral trustee for such Lender, another Lender, or an Affiliate of a Lender. In no event may any portion of the Advances be assigned to any Person that is not a Qualified Purchaser. Each assignor may, subject to the restrictions set forth in this **<u>Section</u> 9.01(a)**, in **<u>Section</u> 12.12** and in the Note, in connection with a prospective assignment, disclose to the applicable prospective assignee any information relating to Borrower or the Collateral furnished to such assignor by or on behalf of the Credit Parties, the Administrative Agent or another Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower may not assign its rights or delegate its obligations hereunder or any interest herein without the prior written consent of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting any other rights that may be available under applicable law, the rights of any Lender may be enforced through it or by its agents. The Lenders hereby appoint Banco Santander S.A., New York Branch, as Administrative Agent to act on behalf of all the Lenders and to take actions and make decisions on behalf of all the Lenders; provided that no such action or decision made by any such Administrative Agent shall be materially adverse to the interests of any Lender without their prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender may, without the consent of the Borrower, sell participations to one or more banks or other entities that is a Qualified Purchaser (each, a "**<u>Participant</u>**") in all or a portion of its rights and obligations hereunder (including the outstanding Advances); **<u>provided</u>** that, following the sale of a participation under this Agreement (i) the obligations of such Lender shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the Borrower shall continue to deal solely and directly with the Administrative Agent or such Lender, as appropriate, in connection with such Lender's rights and obligations under this Agreement and (iv) such Participant will not be entitled to receive any payment under **<u>Section 2.06</u>** (*Taxes*), **<u>4.02</u>** (*Increased Costs; Capital Adequacy*) or **<u>10.01</u>** (*Indemnities*) related to Taxes, in excess of the payments such Lender would have been entitled to receive. The Borrower acknowledges and agrees that such Lender's sources of funds may derive in part from its Participants. Accordingly, references in **<u>Article IV</u>**, **<u>Section 12.05</u>** and the other terms and provisions of this Agreement and the other Transaction Documents to determinations, reserve and capital adequacy requirements, expenses, increased costs, reduced receipts and the like as they pertain to such Lender shall be deemed also to include those of its Participants. If any Lender sells a participating interest in any Advance or other interest to a Participant, such Lender shall record in book entries maintained by such Lender the name and the amount of the participating interest of each Participant entitled to receive payments in respect of such participating interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Administrative Agent shall maintain a register (the "**<u>Register</u>**") on which it will record the name and address of each Lender (including any assignees), the principal amounts (and stated interest) owing to each Lender under this Agreement, and any other information necessary to ensure that the Advances are maintained "in registered form" within the meaning of Treasury regulations section 5f.103-1(c). The entries in the Register will be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders will treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Administrative Agent shall update the Register promptly upon receiving written notice from any Lender of an assignment of such Lender's interests hereunder, and no such assignment shall be effective until reflected in the Register. The Register shall be available for inspection by the Borrower and each Lender, at any reasonable time and from time to time upon reasonable prior notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) In the event that any Lender sells a participation of its rights and obligations hereunder, such Lender shall maintain a register (the "**<u>Participant Register</u>**") on which it will record the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in such rights and obligations, and any other information necessary to ensure that the Advances are maintained "in registered form" within the meaning of Treasury regulations section 5f.103-1(c). The entries in the Participant Register will be conclusive absent manifest error, and such Lender will treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement. Such Lender shall update the Participant Register promptly upon a sale of a participation of such Lender's rights and obligations hereunder, and no such sale of a participation shall be effective until reflected in the Participant Register. Such Lender will not have any obligation to disclose all or any portion of the Participant Register to any Person except (i) that it will notify the Borrower of such participation and (ii) to the extent that such disclosure is necessary to establish that the Advances are maintained "in registered form" within the meaning of Treasury regulations section 5f.103-1(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If a Lender is a Non-Consenting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, **<u>Section 9.01</u>**), all of its interests, rights (other than its existing rights to payments hereunder) and obligations under this Agreement and the related Transaction Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), or terminate the commitment of such Lender, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Lender shall have received payment of an amount equal to 100% of the outstanding principal of its Loan Amount, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Transaction Documents from (i) in the case of an assignment, the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts) or (ii) in the case of a termination, the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such assignment does not conflict with applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a Non-Consenting Lender's failure to consent to a proposed change, waiver, discharge or termination with respect to any Transaction Document, the applicable replacement bank or financial institution consents to the proposed change, waiver, discharge or termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in the case of a termination, no Event of Default shall have occurred and be continuing.

**Section 9.02 <u>Rights of Assignee</u>**. Upon the assignment by any Lender in accordance with this **<u>Article IX</u>**, the assignee receiving such assignment shall have all of the rights of such Lender with respect to the Transaction Documents and the Collateral (or such portion thereof as has been assigned), and all of the obligations of such Lender under **<u>Sections 2.06</u>** (*Taxes*) and **<u>9.01(d)</u>**.

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**Section 9.03 <u>Evidence of Assignment</u>**. Any assignment of such Lender's rights and obligations hereunder, and the Advances (or any portion thereof), to any Person may be evidenced by an Assignment and Acceptance or such other instrument(s) or document(s) as may be satisfactory to the assigning Lender, the Borrower (so long as no Event of Default shall have occurred that is continuing) and the assignee.

**Section 9.04 <u>Pledge; Federal Reserve</u>**. Notwithstanding any other provision of this Agreement to the contrary, any Lender may at any time pledge or grant a security interest in all or any portion of its rights (including, without limitation, any interest it has in any Advances and any rights to payment on such Advances or interest thereon) under this Agreement to secure obligations of such Lender or an Affiliate of such Lender to a Federal Reserve Bank, without notice to or consent of the Borrower or any other party hereto; **<u>provided</u>** that no such pledge or grant of a security interest shall release such Lender from any of its obligations hereunder, or substitute any such pledgee or grantee for such Lender as a party hereto.

**Section 9.05 <u>Patriot Act</u>**. Each Lender hereby notifies the Borrower and the Trustee that, pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies the Borrower, the Trust and the Trustee, which information includes the name and address of the Borrower, the Trust and the Trustee and other information that will allow such Lender to identify the Borrower, the Trust and the Trustee in accordance with the Patriot Act.

**ARTICLE X** 

**INDEMNIFICATION** 

**Section 10.01 <u>Indemnities</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ***<u>Indemnity by Borrower</u>***. Without limiting any other rights that any such Person may have hereunder or under applicable law (including, without limitation, the right to recover damages for breach of contract), the Borrower hereby agrees to indemnify the Administrative Agent, each Lender and their respective Affiliates, and all permitted successors and assigns and all officers, directors, stockholders, members, employees, advisors, representatives and agents of any of the foregoing (each an "**<u>Indemnified Party</u>**") from and against any and all damages, losses, claims, liabilities and related costs and expenses, including attorneys' fees and disbursements (all of the foregoing being collectively referred to as "**<u>Indemnified Amounts</u>**") awarded against or incurred by any of them arising out of or relating to the Transaction Documents or the funding of the Advances or the use of proceeds therefrom or in respect of any Pledged Consumer Loan; **<u>but</u> <u>excluding</u>**, **<u>however</u>**, (w) any Taxes, other than any Taxes that represent damages, losses, claims, liabilities, and related costs and expenses arising from any non-Tax claim, (x) Indemnified Amounts to the extent determined by a court of competent jurisdiction to have resulted from gross negligence or willful misconduct on the part of an Indemnified Party, and (y) Indemnified Amounts to the extent the same includes losses in respect of Consumer Loans that are uncollectible solely on account of the insolvency, bankruptcy or lack of creditworthiness of the related Obligor or for diminution of value for Consumer Loans without breach of any representation, warranty or covenant by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any amounts subject to the indemnification provisions of this **<u>Section</u> 10.01(a)** shall be paid by the Borrower to the related Indemnified Party within fifteen Business Days following demand therefor accompanied by reasonable supporting documentation with respect to such amounts.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  ***<u>Control of Litigation and Settlements</u>.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In case any action, suit, proceeding, investigation or claim is brought against an Indemnified Party under this  **<u>Article X</u>** and such party notifies the Indemnifying Parties of the commencement thereof (it being understood that any failure to so notify the Indemnifying Parties shall not relieve any Indemnifying Party from any liability which the
Indemnifying Parties may have pursuant to this  **<u>Article X</u>**), an Indemnifying Party may, solely to the extent it is also a named defendant or target of such action, suit, proceeding, investigation or claim and desires jointly to
participate in the defense thereof, retain counsel satisfactory to and consented to in writing by the Indemnified Party to undertake such joint defense and Indemnifying Party such shall be entitled to participate in such defense and shall cooperate
therein, at such Indemnifying Party's cost, risk and expense;  **<u>provided</u>** , that as a condition to participating in or assuming any part of such defense, the Indemnifying Party must agree in writing that it is liable for any
Indemnified Amounts arising out of or in connection with such action, suit, proceeding, investigation or claim. Notwithstanding the foregoing, any Indemnified Party shall have the right to retain separate counsel and the Borrower shall pay as
incurred (or within five Business Days of presentation of an invoice) the costs, fees, expenses and disbursements of such separate counsel retained by such Indemnified Party in the event (x) the Indemnifying Party shall not have retained
counsel satisfactory to such Indemnified Party in a timely manner to undertake joint representation, (y) such Indemnified Party has reasonably concluded (based on advice of counsel) that there may be legal defenses available to it or other
Indemnified Parties that are different from or in addition to those available to the Indemnifying Party or (z) the named parties to any such proceeding (including any impleaded parties) include both the Indemnifying Party and such Indemnified
Party and joint representation of both such parties by the same counsel would be inappropriate due to actual or potential differing interests between them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Indemnified Party shall, without the prior written consent of the relevant Indemnifying Party (which consent
shall not be unreasonably withheld, conditioned or delayed), settle or compromise or consent to the entry of any judgment in any pending or threatened action, suit, proceeding or claim for which indemnification may be sought hereunder unless such
settlement, compromise or consent includes an unconditional release of such Indemnifying Party from all liability arising out of, related to or in connection with such action, suit, proceeding or claim, and which settlement, compromise or consent,
in each case must not include any admission of liability adverse to such Indemnifying Party. No Indemnifying Party shall, without the prior written consent of all Indemnified Parties that are party thereto (which consent shall not be unreasonably
withheld, conditioned or delayed) settle or compromise or consent to the entry of any judgment in any pending or threatened claim,

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action or proceeding for which indemnification may be sought hereunder, unless such settlement, compromise or consent includes an unconditional release of all such Indemnified Parties from all liability arising out of such claim, action or proceeding, and which settlement in each case must not include any admission of fault or liability adverse to any Indemnified Party other than the payment of money damages by the Indemnifying Party. Each Indemnified Party who is not directly a party to this Agreement is an express third party beneficiary of this Agreement.

**ARTICLE XI** 

**RESERVED** 

**ARTICLE XII** 

**MISCELLANEOUS** 

**Section 12.01 <u>Amendments, Etc.</u>**. No amendment or waiver of any provision of this Agreement or termination of this Agreement nor any consent to any departure by the Borrower or the Trustee therefrom shall in any event be effective unless the same shall be in writing and signed by each of the Borrower, the Trustee, the Required Lenders, and the Administrative Agent. Notwithstanding the foregoing, no Fundamental Amendment shall in any event be effective unless the same shall be in writing and signed by each of the Borrower, the Trustee, each Lender party hereto, and the Administrative Agent. No amendment or waiver of any provision of this Agreement adverse to the interests of the Account Institution shall be effective against the Account Institution without the consent of the Account Institution.

**Section 12.02 <u>Notices, Etc</u>**. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including communication by facsimile copy or e-mail) and mailed, delivered by nationally recognized overnight courier service, transmitted or delivered by hand, as to each party hereto, at its address set forth on **<u>Schedule 12.02</u>** (*Notice Addresses*) hereto (or with respect to Lenders after the Closing Date, as set forth in the Assignment and Acceptance or any amendment or supplement thereto) or at such other address as shall be designated by such party in a written notice to the other parties hereto. Each such notice, request or other communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the specified facsimile number and an appropriate confirmation is received, (ii) if given by e-mail, when sent to the specified e-mail address, (iii) if given by certified or registered mail, **<u>five</u>** days after being postmarked (except that notices and communications by mail pursuant to **<u>Article I</u>** (*Advances*) above or notices of Unmatured Events of Default, Events of Default, Amortization Events and Servicer Events of Default shall not be effective until received), (iv) if given by nationally recognized courier guaranteeing overnight delivery, the Business Day following such day after such communication is delivered to such courier or (v) if by hand delivery, when delivered at the address specified pursuant to this **<u>Section 12.02</u>** (*Notices, Etc.*) above.

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**Section 12.03 <u>No Waiver; Remedies</u>**. No failure on the part of the Borrower, any Lender, any Affected Party, any Indemnified Party or the Administrative Agent to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof (unless waived in writing); nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

**Section 12.04 <u>Binding Effect; Survival</u>**. This Agreement shall be binding upon and inure to the benefit of the Borrower, the Trustee, the Trust, the Administrative Agent and the Lenders, and their respective successors and assigns, and the provisions of **<u>Section 4.02</u>** (*Increased Costs; Capital Adequacy*), **<u>Section 4.03</u>** (*Funding Indemnification*) (with respect to the Affected Parties), and **<u>Article X</u>** (with respect to the Indemnified Parties) shall inure to the benefit of the Affected Parties and the Indemnified Parties, respectively, and their respective successors and assigns; provided, however, that, nothing in the foregoing shall be deemed to authorize any assignment not permitted by **<u>Section 9.01</u>**. This Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms, and shall remain in full force and effect until the Final Payout Date. With the exception of **<u>Article I</u>**, **<u>Article II</u>** (other than **<u>Sections 2.03</u>** (*Repayments and Prepayments*), and **<u>2.06</u>** (*Taxes*)), **<u>Article III</u>** (*Settlements*), **<u>Article IV</u>** (other than **<u>Sections 4.02</u>** (*Increased Costs; Capital Adequacy*) and **<u>4.03</u>** (*Funding Indemnification*)), **<u>Article V</u>** (*Conditions of Borrowings*), **<u>Article VII</u>**, **<u>Article VIII</u>** (other than **<u>Section</u> 8.02**) and **<u>Article XI</u>** the provisions of this Agreement shall survive the Final Payout Date. The Account Institution shall be an express third party beneficiary of this Agreement.

**Section 12.05 <u>Costs and Expenses</u>**. In addition to its obligations under **Article X**, the Borrower agrees to pay, within five Business Days of demand therefor: all costs and expenses incurred by any Lender and its Affiliates in connection with the negotiation, preparation, execution and delivery of, the amendment to, the waiver of, or the enforcement of, this Agreement and the other Transaction Documents, including (i) the fees, charges and disbursements of counsel to any of such Persons incurred in connection with any of the foregoing, such fees, charges and disbursements not to exceed , (ii) the reasonable fees, charges and disbursements of counsel incurred in advising such Persons as to their respective rights and remedies under any of the Transaction Documents following the Closing Date, (iii) all out-of-pocket expenses (including fees and expenses of independent accountants), incurred in connection with any review of the Borrower's books and records including pursuant to **<u>Section 7.01(c)</u>** (*Audits*) above, subject to the limits set forth in such **<u>Section 7.01(c)</u>**, (iv) out-of-pocket expenses incurred in enforcing indemnification rights under the Transaction Documents and (v) out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of the Advances hereunder.

**Section 12.06 <u>Captions and Cross References</u>**. The various captions (including, without limitation, the table of contents) in this Agreement are provided solely for convenience of reference and shall not affect the meaning or interpretation of any provision of this Agreement. Unless otherwise indicated, references in this Agreement to any Section, Appendix, Schedule or Exhibit are to such Section of or Appendix, Schedule or Exhibit to this Agreement, as the case may be, and references in any Section, subsection, or clause to any subsection, clause or subclause are to such subsection, clause or subclause of such Section, subsection or clause.

**Section 12.07 <u>Integration</u>**. This Agreement and the other Transaction Documents, contain a final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire understanding among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings.

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**Section 12.08 <u>Governing Law</u>**. THIS AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES HERETO, AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES), EXCEPT, AS TO ANY TRANSACTION DOCUMENT, AS EXPRESSLY SET FORTH THEREIN AND EXCEPT TO THE EXTENT THAT THE CREATION, PERFECTION OR PRIORITY OF THE INTERESTS OF THE SECURED PARTIES IN THE COLLATERAL IS GOVERNED BY THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW YORK.

**Section 12.09 <u>Waiver of Jury Trial; Submission to Jurisdiction</u>**. EACH OF THE BORROWER, THE SERVICER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY EXPRESSLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR ANY AMENDMENT, INSTRUMENT OR DOCUMENT DELIVERED OR WHICH MAY BE IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY BANKING OR OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. EACH OF THE BORROWER, THE SERVICER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF A SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK AND ANY APPELLATE COURT FROM ANY THEREOF FOR THE PURPOSE OF ADJUDICATING ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT, IN TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY AND, FOR SUCH PURPOSE, HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE THEREIN OF ANY ACTION INSTITUTED HEREUNDER AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT. NOTHING IN THIS **SECTION 12.09** SHALL AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT TO BRING ANY ACTION OR PROCEEDING AGAINST ANY PARTY HERETO OR ITS PROPERTY IN THE COURTS OF ANY OTHER JURISDICTION.

**Section 12.10 <u>Execution in Counterparts; Severability</u>**. This Agreement may be executed by any one or more of the parties hereto in any number of counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument. This Agreement shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an original manual signature, (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other

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electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the UCC (collectively, "**<u>Signature Laws</u>**"), in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof. For the avoidance of doubt, original manual signatures shall be used for execution or indorsement of writings when required under the UCC or other Signature Laws due to the character or intended character of the writings.

**Section 12.11 <u>No Recourse Against Other Parties</u>**. No recourse under any obligation, covenant or agreement of the Administrative Agent, the Lenders, or any Credit Party contained in this Agreement shall be had against any stockholder, member, employee, officer, director, or incorporator of any such party; <u>provided</u>, <u>however</u>, <u>that</u>, nothing in this **<u>Section 12.11</u>** shall relieve any of the foregoing Persons from any liability which such Person may otherwise have for his/her or its gross negligence or willful misconduct.

**Section 12.12 <u>Confidentiality</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender and the Administrative Agent agrees to keep confidential and not disclose the terms hereof and of the other Transaction Documents or the structure of the transaction contemplated by the Transaction Documents (the "**<u>Transaction</u>**"), or any non-public information or documents related to the Borrower or any Affiliate of the Borrower delivered or provided to such Person in connection with this Agreement, any other Transaction Document or the Transaction; <u>provided</u>, <u>however</u>, <u>that</u>, a Lender or the Administrative Agent may disclose such information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the extent required or deemed necessary and/or advisable by such Person's counsel in any judicial,
regulatory, arbitration or governmental proceeding or under any law, regulation, order, subpoena or decree;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to its Affiliates and its Affiliates' officers, directors, employees, accountants, auditors, agents,
potential agents and outside counsel, in each case, provided they are informed of the confidentiality thereof and agree to maintain such confidentiality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to any permitted assignee or participant or potential assignee or participant of or with such Lender so long as
the information disclosed is reasonably related to such Person's evaluation of the participation and such Person agrees in writing for the benefit of the Borrower and the Servicer to maintain the confidentiality of such information on terms
similar in all material respects to this  **<u>Section 12.12</u>;** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in connection with the enforcement of its rights and remedies under this Agreement or of any of the other
Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to any collateral trustee appointed by the Lender to comply with Rule 3a-7 under the Investment Company Act, provided such collateral trustee is informed of the confidential nature of such information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to any nationally recognized statistical rating organization for the purpose of assisting in the negotiation,
completion, administration and evaluation of the Transaction or in compliance with Rule 17g-5 under the Exchange Act (or to any other rating agency in compliance with any similar rule or regulation in any
relevant jurisdiction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) to its and its Affiliates' regulators; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) with the consent of the Borrower.

Notwithstanding the foregoing, the obligations of the Lenders and the Administrative Agent under this **<u>Section</u> 12.12(a)** shall not apply to disclosures of any information, documents or portions thereof that (x) were of public knowledge or literature generally available to the public at the time of such disclosure, (y) have become part of the public domain by publication or otherwise, other than as a result of the failure of any Person required to keep such information confidential as provided in this **<u>Section</u> 12.12(a)** to do so or (z) are disclosed with the prior written consent of the Borrower. Further, notwithstanding anything to the contrary herein, the parties hereto (and each of their employees, representatives and other agents) may disclose to any persons, without limitation of any kind, the tax treatment and tax structure of the transaction contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the Borrower and the Trust agrees that it shall not (and shall not allow any of its Affiliates to) disclose to any Person or entity the specific pricing, advance rate or concentration limit information provided by any Lender and Affiliates of any Lender or the amount or terms of any fees payable to any Lender or any Affiliate of any Lender in connection with the Transaction (collectively, the "**<u>Product Information</u>**"), except

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to its and its Affiliates' employees, officers, directors, advisors, representatives, accountants, legal
counsel and agents (collectively, the "  **<u>Borrower Representatives</u> "**) who have a need to know the Product Information for the purpose of assisting in the negotiation and completion of the Transaction and performing the
Borrower's or its Affiliates' obligations under the Transaction Documents, and who agree to be bound by the provisions of this  **<u>Section 12.12</u>** and to use such Product Information only in connection with the Transaction and
not for any other purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent any Credit Party or any Affiliate or their counsel thereof deems reasonably necessary in order to
comply with any requirement of any law, governmental agency or other regulatory body, or in connection with any judicial, regulatory, arbitration or governmental proceeding;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to any nationally recognized statistical rating organization for the purpose of assisting in the negotiation,
completion, administration and evaluation of the Transaction or in compliance with Rule 17g-5 under the Exchange Act (or to any other rating agency in compliance with any similar rule or regulation in any
relevant jurisdiction);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to its and its Affiliates' regulators;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to the Administrative Agent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) with the prior written consent of such Lender.

"**<u>Product Information</u>**" shall not include, however, information that is a matter of general public knowledge or has heretofore been or is hereafter published in any source generally available to the public other than as a result of a disclosure by any Person required to keep such information confidential as provided in this **<u>Section 12.12</u>**. Each of the Borrower and the Servicer will be responsible for any failure of any Borrower Representative to comply with the provisions of this **<u>Section 12.12</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each party hereto agrees not to use the name of each other party hereto in any press release or marketing materials without the prior written consent of such other party; **<u>provided</u>** that the foregoing shall not apply to any documents that any party reasonably determines are required by applicable law, rule or regulation to include such other party's name and to be filed with the SEC or any other regulatory body so long as the disclosing party has, to the extent reasonably practicable, given such other party the opportunity to review the form and content of such proposed filing in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The parties hereto shall also adhere to the following requirements regarding the confidentiality and security of Obligor Information and Consumer Loan Files:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Definitions:</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "  **<u>Obligor Information</u>**" means any personally identifiable information or records in any
form (oral, written, graphic, electronic, machine-readable, or otherwise) relating to an Obligor, including, but not limited to: an Obligor's name, address, telephone number, account number, or transactional account history, account status;
the fact that the Obligor has a relationship with Borrower or Servicer; and any other personally identifiable information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "  **<u>Information Security Program</u>**" means written policies and procedures adopted and
maintained to (i) ensure the security and confidentiality of Obligor Information, (ii) protect against any anticipated threats or hazards to the security or integrity of the Obligor Information, (iii) protect against unauthorized
access to or use of the Obligor Information that could result in substantial harm or inconvenience to any Obligor, (iv) ensure the proper disposal of such Obligor Information and (v) that fully comply with the applicable provisions of the
Privacy Requirements.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) "  **<u>Privacy Requirements</u>**" means (i) Title V of the Gramm-Leach- Bliley Act, 15
U.S.C. 6801 et seq., (ii) federal regulations implementing such act and codified at 12 CFR Parts 40, 216, 332, and 573 and 16 C.F.R. Part 313, (iii) Interagency Guidelines Establishing Standards For Safeguarding Obligor Information and codified at
12 C.F.R. Parts 30, 208, 211, 225, 263, 308, 364, 568, and 570, and 16 C.F.R. Part 314 and (iv) other applicable federal, state and local laws, rules, regulations, and orders relating to the privacy and security of Obligor Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Protection and Security of Obligor Information Under Gramm-Leach- Bliley Act.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Each party hereto shall maintain at all times an Information Security Program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each party hereto shall assess, manage, and control risks relating to the security and confidentiality of
Obligor Information, and shall implement the standards relating to such risks in the manner set forth in the applicable provisions of the Privacy Requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Without limiting the scope of the above, each party hereto shall use at least the same physical and other
security measures to protect all Obligor Information in such party's possession or control, as such party uses for its own confidential and proprietary information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Compliance with Privacy Requirements</u>. The parties hereto shall comply with all applicable Privacy
Requirements. The parties hereto will not utilize Obligor Information for any purpose not in connection with the transactions contemplated under this Agreement and the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Unauthorized Access to Obligor Information</u>. In the event the Borrower, the Administrative Agent or any
Lender knows or reasonably believes that there has been any unauthorized access to Obligor Information in the possession or control of the Borrower, the Administrative Agent or such Lender, as applicable, that compromises (or threatens to
compromise) the security, confidentiality or integrity of such Obligor Information, the Borrower, the Administrative Agent or such Lender, as applicable, shall take the following actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) promptly notify Servicer of such unauthorized access;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) identify to Servicer what specific Obligor Information may have been accessed, including (if applicable) the
name and account number of each affected Obligor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) take commercially reasonable steps to remedy the circumstances that permitted any such unauthorized access to
occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) take commercially reasonable steps to prohibit further disclosure of Obligor Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) upon Servicer's request, share with such other party the results of any computer forensics analysis of
any unauthorized access; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) cooperate with Servicer as reasonably necessary to facilitate compliance with any applicable laws and
regulations regarding unauthorized access of Obligor Information.

**Section 12.13 <u>Limitation of Liability</u>**. No claim may be made by the Borrower, any of its Affiliates, or any other Person against any Lender or its Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and the Borrower hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor.

**Section 12.14 <u>No Advisory or Fiduciary Responsibility</u>**. The Borrower acknowledges and agrees that: (i) the Transaction is an arm's-length commercial transaction between the Borrower, on the one hand, and the Lenders, on the other hand, and the Borrower is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the Transaction; (ii) in connection with the Transaction each Lender is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary of the Borrower, any Credit Party or any of their respective Affiliates; (iii) no Lender has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower, any Credit Party or any of their respective Affiliates with respect to the Transaction or the process leading thereto (irrespective of whether such Lender has advised or is currently advising any Credit Party and no Lender has any obligation to the Borrower, any Credit Party or any of their respective Affiliates with respect to the Transaction except the obligations expressly set forth in the Transaction Documents; (iv) each Lender and its Affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Credit Parties and their Affiliates, and such Lender has no obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) no Lender has provided any legal, accounting, regulatory or tax advice with respect to the Transaction and the Borrower has consulted its own legal, accounting, regulatory and tax advisors to the extent it deemed appropriate. The Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it may have against any Lender with respect to any breach or alleged breach of agency or fiduciary duty.

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**Section 12.15 <u>Permitted Releases</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary in this Agreement, any or all of the Pledged Consumer Loans may be released from the lien and security interest of the Administrative Agent in connection with any Permitted Release; **<u>provided</u>** that, after giving effect to such Permitted Release, (i) the Loan Amount shall not exceed the Borrowing Base immediately prior to or immediately after the consummation of such Permitted Release, as evidenced by a report summarizing the changes in the outstanding Loan Amount delivered to the Administrative Agent at least one Business Day prior to such Permitted Release, (ii) the Borrower shall make a deposit into the Collection Account in immediately available funds equal to the amount, if any, necessary to cause the Loan Amount (upon prepayment pursuant to **<u>Section 2.03</u>** (*Repayments and Prepayments*) above) to be equal to or less than the Borrowing Base on such date, (iii) the Borrower shall make a deposit into the Collection Account in immediately available funds equal to the related Exit Fee, (iv) no Event of Default or Amortization Event will occur as a result of such Permitted Release, and (v) the credit quality of the remaining pool of Pledged Consumer Loans shall not be materially inferior to such pool prior to the proposed Permitted Release.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At least two Business Days prior to any Permitted Release, the Borrower shall be required to deliver to the Administrative Agent a report (the "**<u>Release Notification Report</u>**"), summarizing the details of such transaction, including (i) a schedule of all Pledged Consumer Loans to be released, (ii) a statement that all conditions precedent for such release pursuant to this Section 12.15 have been met and (iii) a statement that the amount that the outstanding Loan Amount will be paid down simultaneously with the effectiveness of the Permitted Release is a permitted prepayment in accordance with **<u>Section 2.03</u>** *(Repayments and Prepayments)* above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any transaction not in compliance with this **<u>Section 12.15</u>** by the Borrower or its Affiliates shall be null and void and shall not create any lien or security interest, or transfer any right, title, or interest in or to any of the applicable Pledged Consumer Loans.

**Section 12.16 <u>Nonpetition</u>**. Notwithstanding any prior termination of this Agreement, neither the Administrative Agent nor any Lender shall, prior to the date which is one year and one day after the date upon which all obligations and payments under this Agreement have been paid in full, acquiesce, petition or otherwise invoke or cause the Borrower to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against Borrower under any United States federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Borrower or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Borrower.

**Section 12.17 <u>Limited Recourse</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything to the contrary contained herein, the obligations of the Borrower under this Agreement are solely the obligations of the Borrower and, in the case of obligations of the Borrower other than with respect to the Note, shall be payable at such time as funds are received by or are available to the Borrower in excess of funds necessary to pay in full the Note, the claims relating thereto shall not constitute a claim against the Borrower but shall continue to accrue. Each party hereto agrees that the payment of any claim (as defined in the Bankruptcy Code) of any such party shall be subordinated to the payment in full of the Note.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No recourse under any obligation, covenant or agreement of the Borrower contained in this Agreement shall be had against any member, manager, officer, director, employee or agent of the Borrower, the Trustee, the Trust or any of their Affiliates (solely by virtue of such capacity) by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that, except as expressly set forth herein, the Note is solely an obligation of the Borrower individually, and that no personal liability whatever shall attach to or be incurred by any incorporator, stockholder, officer, director, member, employee or agent of the Borrower, the Trustee, the Trust or any of their Affiliates (solely by virtue of such capacity) or any of them under or by reason of any of the obligations, covenants or agreements of the Borrower contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by such party of any of such obligations, covenants or agreements, either at common law or at equity, or by statute, rule or regulation, of every such member, manager, officer, director, employee or agent is hereby expressly waived as a condition of and in consideration for the execution of this Agreement; provided that the foregoing shall not relieve any such Person from any liability it might otherwise have as a result of fraudulent actions taken or omissions made by them. The provisions of this Section 12.17 shall survive termination of this Agreement.

**Section 12.18 <u>Erroneous Payments</u>.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Administrative Agent notifies a Lender or other holder of any Obligations (each, a "**<u>Lender Party</u>**"), or any Person who has received funds on behalf of a Lender Party (any such Lender Party or other recipient, a "**<u>Payment Recipient</u>**"), that the Administrative Agent has determined in its sole discretion (whether or not after receipt of any notice under **<u>Section</u> 12.18(b)**) that any funds received by such Payment Recipient from the Administrative Agent or any of its Affiliates were erroneously transmitted to, or otherwise erroneously received by, such Payment Recipient (whether or not such error is known to any Payment Recipient) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "**<u>Erroneous Payment</u>**") and demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and such Payment Recipient shall promptly, but in no event later than one Business Day thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect. A notice of the Administrative Agent to any Payment Recipient under this clause (a) shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting **<u>Section 12.18(a)</u>**, if any Payment Recipient receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the Administrative Agent (or any of its Affiliates) that (x) is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates), or (z) such Payment Recipient otherwise becomes aware was transmitted, or received, in error (in whole or in part):

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) in the case of immediately preceding clause (x) or (y), an error shall be presumed to have been made
(absent written confirmation from the Administrative Agent to the contrary) or (B) in the case of immediately preceding clause (z), an error has been made, in each case, with respect to such payment, prepayment or repayment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) such Payment Recipient shall promptly (and, in all events, within one Business Day of its knowledge of such
error) notify the Administrative Agent of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this  **<u>Section 12.18(b)</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender Party hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Lender Party under any Transaction Document, or otherwise payable or distributable by the Administrative Agent to such Lender Party from any source, against any amount due to the Administrative Agent under **<u>Section 12.18(a)</u>** or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) An Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations, except to the extent such Erroneous Payment comprises funds received by the Administrative Agent from a Credit Party for the purpose of making such Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent permitted by applicable law, each Payment Recipient hereby agrees not to assert any right or claim to an Erroneous Payment, and hereby waives, and is deemed to waive, any claim, counterclaim, defense or right of set-off or recoupment, including without limitation any defense based on "discharge for value" or any similar doctrine, with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's agreements under this **<u>Section 12.18</u>** shall survive the resignation or replacement of the Administrative Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the commitments, or the repayment, satisfaction or discharge of any or all Obligations.

**Section 12.19 <u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>.** Notwithstanding anything to the contrary in any Transaction Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Affected Financial Institution arising under any Transaction Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder that may be payable to it by any party hereto that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the effects of any Bail-In Action on any such liability, including, if applicable:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in full or in part or cancellation of any such liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such
Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect
to any such liability under this Agreement or any other Transaction Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion
powers of the applicable Resolution Authority.

**ARTICLE XIII** 

**THE ADMINISTRATIVE AGENT** 

**Section 13.01 <u>Authorization and Action</u>**. Each Lender hereby irrevocably appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and, to the extent applicable, the other Transaction Documents as are delegated to the Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, subject to the terms hereof. The Administrative Agent shall not have any duties or responsibilities, except those expressly set forth herein or in the other Transaction Documents, or any fiduciary relationship with any Secured Party, and no implied covenants, functions, responsibilities, duties or obligations or liabilities on the part of the Administrative Agent shall be read into this Agreement or any other Transaction Document to which the Administrative Agent is a party (if any) as duties on its part to be performed or observed. The Administrative Agent shall not have or be construed to have any other duties or responsibilities in respect of this Agreement and the transactions contemplated hereby. As to any matters not expressly provided for by this Agreement or the other Transaction Documents, the Administrative Agent shall not be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the written instructions of the Required Lenders; **<u>provided</u>** that the Administrative Agent shall not be required to take any action which exposes the Administrative Agent, in its judgment, to personal liability or which is contrary to this Agreement, the other Transaction Documents or applicable law, or would be, in its judgment, contrary to its duties hereunder, under any other Transaction Document or under applicable law. Each Lender agrees that in any instance in which the Transaction Documents provide that the Administrative Agent's consent may not be unreasonably withheld, provide for the exercise of the Administrative Agent's reasonable discretion, or provide to a similar effect, it shall not in its instructions (or, by refusing to provide instruction) to the Administrative Agent withhold its consent or exercise its discretion in an unreasonable manner.

**Section 13.02 <u>Delegation of Duties</u>**. The Administrative Agent may execute any of its duties under this Agreement and each other Transaction Document by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

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**Section 13.03 <u>Agent's Reliance, Etc</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with this Agreement or any of the other Transaction Documents, except for its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, the Administrative Agent: (i) may consult with legal counsel (including, without limitation, counsel for the Credit Parties or any of their Affiliates) and independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation to any Secured Party or any other Person and shall not be responsible to any Secured Party or any Person for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or the other Transaction Documents by any other Person; (iii) shall not have any duty to monitor, ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement, the other Transaction Documents or any related documents on the part of the Borrower or the Servicer or any other Person or to inspect the property (including the books and records) of the Credit Parties; (iv) shall not be responsible to any Secured Party or any other Person for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of any Collateral, this Agreement, the other Transaction Documents or any other instrument or document furnished pursuant hereto or thereto or for the validity, perfection, priority or enforceability of the Liens on the Collateral; and (v) shall incur no liability under or in respect of this Agreement or any other Transaction Document by relying on, acting upon (or by refraining from action in reliance on) any notice, consent, certificate, instruction or waiver, report, statement, opinion, direction or other instrument or writing (which may be delivered by telecopier, email, cable or telex, if acceptable to it) believed by it to be genuine and believe by it to be signed or sent by the proper party or parties. The Administrative Agent shall not have any liability to any Credit Party or any other Lender or any other Person for any Credit Party's, or any Lender's, as the case may be, performance of, or failure to perform, any of their respective obligations and duties under this Agreement or any other Transaction Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent shall be entitled to assume the due authority of any signatory and genuineness of any signature appearing on any instrument or document it may receive. The Administrative Agent shall not be liable for any action taken in good faith and reasonably believed by it to be within the powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed, or omitted to be taken by it by reason of the lack of direction or instruction required hereby for such action (including without limitation for refusing to exercise discretion or for withholding its consent in the absence of its receipt of, or resulting from a failure, delay or refusal on the part of the Required Lenders to provide, written instruction to exercise such discretion or grant such consent from the Required Lenders, as applicable). The Administrative Agent shall not be liable for any error of judgment made in good faith unless it shall be proven by a court of competent jurisdiction that the Administrative Agent was grossly negligent in ascertaining the relevant facts. Nothing herein or in any Transaction Documents shall obligate the Administrative Agent to advance, expend or risk its own funds, or to take any action which in its reasonable judgment may cause it to incur any expense or financial or other liability for which it is not adequately indemnified. The Administrative Agent shall not be liable for any indirect, special or consequential damages (included but not limited to lost profits) whatsoever,

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even if it has been informed of the likelihood thereof and regardless of the form of action. The Administrative Agent shall not be charged with knowledge or notice of any matter unless actually known to a responsible officer of the Administrative Agent, or unless and to the extent written notice of such matter is received by the Administrative Agent at its address in accordance with **<u>Section</u> 12.02** (*Notices, Etc*.) above. Any permissive grant of power to the Administrative Agent hereunder shall not be construed to be a duty to act. The Administrative Agent shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, entitlement order, approval or other paper or document. The Administrative Agent shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith, or for any mistakes of fact or law, or for anything that it may do or refrain from doing in connection herewith except in the case of its willful misconduct, bad faith, reckless disregard or grossly negligent performance or omission of its duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Administrative Agent shall not be responsible or liable for delays or failures in performance resulting from acts beyond its control. Such acts shall include but not be limited to acts of God, strikes, lockouts, riots, acts of war, epidemics, governmental regulations imposed after the fact, fire, communication line failures, computer viruses, power failures, earthquakes or other disasters.

**Section 13.04 <u>Indemnification</u>**. Each of the Lenders agrees to indemnify and hold the Administrative Agent harmless (to the extent not reimbursed by or on behalf of the Credit Parties) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including, without limitation, reasonable attorneys' fees and expenses) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against the Administrative Agent in any way relating to or arising out of this Agreement or any other Transaction Document or any action taken or omitted by the Administrative Agent under this Agreement or any other Transaction Document, in each case, to the extent that Borrower or any Credit Party is required to and does not indemnify the Administrative Agent pursuant to the Transaction Documents; **<u>provided</u>** that no Lender shall be liable to the Administrative Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from the Administrative Agent's gross negligence or willful misconduct. The rights of the Administrative Agent and obligations of the Lenders under or pursuant to this **<u>Section 13.04</u>** shall survive the termination of this Agreement, and the earlier removal or resignation of the Administrative Agent hereunder.

**Section 13.05 <u>Successor Administrative Agent</u>**. Subject to the terms of this **<u>Section 13.05</u>**, the Administrative Agent may, upon 30 days' notice to the Lenders and the Borrower, resign as Administrative Agent. If the Administrative Agent shall resign then the Required Lenders shall appoint a successor agent. If for any reason a successor agent is not so appointed and does not accept such appointment within 30 days of notice of resignation the Administrative Agent may appoint a successor agent. The appointment of any successor Administrative Agent shall be subject to the prior written consent of the Borrower (which consent shall not be unreasonably withheld or delayed); provided that the consent of the Borrower to any such appointment shall not be required if (i) an Event of Default shall have occurred and is continuing or (ii) if such successor Administrative Agent is a Lender or an Affiliate of such Administrative Agent or any Lender. Any resignation of the Administrative Agent shall be effective upon the appointment of a successor

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agent pursuant to this **<u>Section 13.05</u>**. After the effectiveness of the retiring Administrative Agent's resignation hereunder as the Administrative Agent, the retiring Administrative Agent shall be discharged from its duties and obligations hereunder and under the other Transaction Documents and the provisions of this **<u>Article XIII</u>** shall continue in effect for its benefit with respect to any actions taken or omitted to be taken by it while it was the Administrative Agent under this Agreement and under the other Transaction Documents. Any Person (i) into which the Administrative Agent may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Administrative Agent shall be a party, or (iii) that may succeed to the properties and assets of the Administrative Agent substantially as a whole, shall be the successor to the Administrative Agent under this Agreement without further act of any of the parties to this Agreement.

**Section 13.06 <u>Administrative Agent's Capacity as a Lender</u>**. The Person serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Administrative Agent, and such Person and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or any other Affiliate thereof as if it were not the Administrative Agent hereunder.

**Section 13.07 <u>Delivery of Notices and Reports</u>**. Promptly upon receipt thereof, the Administrative Agent shall distribute all notices and reports received by it pursuant to this Agreement to each Lender at the address for such Lender to the Administrative Agent in the related Assignment and Acceptance.

**Section 13.08 <u>Exercise of Trustee Discretion; Limitation of Trustee Liability</u>**. Notwithstanding anything to the contrary in this Agreement, and for the avoidance of doubt, it is hereby acknowledged and agreed that each and every exercise of discretion on the part of the Trust or the Trustee under this Agreement (including the election to exercise or waive any right, the delivery of any written notice, and the grant or withholding of any consent or approval), may be made by the Program Manager in accordance with the Trust Agreement, as amended from time to time. It is expressly understood and agreed by the parties hereto (and any Person claiming by or through the parties hereto) that (i) this Agreement is executed and delivered by UMB Bank, not individually or personally but solely as trustee of the Trust, in the exercise of the powers and authority conferred and vested in it under the Trust Agreement, (ii) each of the undertakings and agreements herein made on the part of the Trust or the Trustee is made and intended not as personal undertakings or agreements by UMB Bank but is made and intended for the purpose of binding only the Trust, (iii) nothing herein contained shall be construed as creating any obligation or liability on UMB Bank, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto, and (iv) under no circumstances shall UMB Bank (in its individual capacity or as trustee of the Trust) be personally liable for the payment of any indebtedness, indemnification or expenses of the Trustee or the Trust or be liable for the performance, breach or failure of any obligation or covenant made or undertaken by the Trustee or the Trust under this Agreement or any related document. Without limitation of anything in the foregoing, in no event shall UMB Bank have any liability to any Person under or in connection with this Agreement, any liability of the Trustee or the Trust being solely the liability of the Trust and the assets of the Trust.

[SIGNATURE PAGES FOLLOW]

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**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

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| | | |
|:---|:---|:---|
|  | **PALCO LVS 6 LP**,<br>as the Borrower and Program Manager | **PALCO LVS 6 LP**,<br>as the Borrower and Program Manager |
| ![LOGO](g112132dsp076.jpg) | By: | PALCO LVS 6 GP LLC, its general partner |
| ![LOGO](g112132dsp076.jpg) | By: | /s/ Harin de Silva |
| ![LOGO](g112132dsp076.jpg) | Name: | Harin de Silva |
| ![LOGO](g112132dsp076.jpg) | Title: | Authorized Person |
|  | **PALCO Holdings 3 LP**, a Delaware limited partnership, as Sponsor, solely with respect to Section 6.05 | **PALCO Holdings 3 LP**, a Delaware limited partnership, as Sponsor, solely with respect to Section 6.05 |
|  | (*EU Risk Retention*) | (*EU Risk Retention*) |
| ![LOGO](g112132dsp076.jpg) | By: PIMCO Asset-Based Lending Company LLC—Series I, its co-general partner | By: PIMCO Asset-Based Lending Company LLC—Series I, its co-general partner |
| ![LOGO](g112132dsp076.jpg) | By: | /s/ Harin de Silva |
| ![LOGO](g112132dsp076.jpg) | Name: | Harin de Silva |
|  | Title: | Co-President |
|  | By: PALCO Holding A Offshore LP, its co-general partner | By: PALCO Holding A Offshore LP, its co-general partner |
|  | By: PALCO Holding A Offshore Ltd., its general partner | By: PALCO Holding A Offshore Ltd., its general partner |
| ![LOGO](g112132dsp076.jpg) | By: PIMCO Asset-Based Lending Company LLC—Series | By: PIMCO Asset-Based Lending Company LLC—Series |
| ![LOGO](g112132dsp076.jpg) | II, its sole director | II, its sole director |
| ![LOGO](g112132dsp076.jpg) | By: | /s/ Harin de Silva |
| ![LOGO](g112132dsp076.jpg) | Name: | Harin de Silva |
|  | Title: | Co-President |

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[Signature Page to Credit and Security Agreement]

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| | |
|:---|:---|
| **UMB BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as trustee for PAL CL Trust 1,** | **UMB BANK, NATIONAL ASSOCIATION, not in its individual capacity, but solely as trustee for PAL CL Trust 1,** |
| By: | /s/ Molly Beane |
| Name: | Molly Beane |
| Title: | Vice President |

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[Signature Page to Credit and Security Agreement]

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| | | |
|:---|:---|:---|
| **BANCO SANTANDER S.A., NEW YORK BRANCH,** | **BANCO SANTANDER S.A., NEW YORK BRANCH,** | **BANCO SANTANDER S.A., NEW YORK BRANCH,** |
| as the Administrative Agent | as the Administrative Agent | as the Administrative Agent |
| By: | /s/ Kai Ang /s/ Adam Smith | /s/ Kai Ang /s/ Adam Smith |
| Name: | Kai Ang | Adam Smith |
| Title: | Managing Director | Managing Director |

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[Signature Page to Credit and Security Agreement]

------

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| | | |
|:---|:---|:---|
| **BANCO SANTANDER S.A., NEW YORK BRANCH,** | **BANCO SANTANDER S.A., NEW YORK BRANCH,** | **BANCO SANTANDER S.A., NEW YORK BRANCH,** |
| as Lender | as Lender | as Lender |
| By: | /s/ Kai Ang /s/ Adam Smith | /s/ Kai Ang /s/ Adam Smith |
| Name: | Kai Ang | Adam Smith |
| Title: | Managing Director | Managing Director |

---

[Signature Page to Credit and Security Agreement]

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APPENDIX A

**Definitions** 

This is **<u>Appendix A</u>** is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), UMB Bank, National Association, not in its individual capacity, but solely as trustee (the "**<u>Trustee</u>**") for **PAL CL Trust 1**, a New York common law trust (the "**<u>Trust</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"). Each reference in this **<u>Appendix A</u>** to any Section, the Preamble, Appendix or Exhibit refers to such Section of or Appendix, Preamble or Exhibit to the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. **<u>Defined Terms</u>**. As used in this Agreement, the following terms have the meanings indicated below (such definitions to be applicable to both the singular and plural forms of such terms):

"**<u>ABR</u>**" means, for any day, a rate per annum determined by the Administrative Agent to be equal to the highest of (a) the Prime Rate for such day, (b) the sum of and the Federal Funds Rate for such day, and (c) the sum of Term SOFR plus .

"**<u>ABR Loans</u>**" means Advances denominated in U.S. Dollars bearing interest at a rate based on ABR.

"**<u>Account Control Agreement</u>**" means the Deposit Account Control Agreement, dated as of the Closing Date, among the Account Institution, the Administrative Agent and the Borrower, or, if the Administrative Agent (with the consent of the Borrower; **<u>provided</u>** that no such consent shall be required following the occurrence of an Event of Default or Servicer Event of Default) subsequently designates another account as the Collection Account hereunder, the account control agreement entered into in connection with such account, in form and substance acceptable to the Administrative Agent.

"**<u>Account Institution</u>**" means U.S. Bank National Association, or another Eligible Institution selected by the Borrower and consented to by the Administrative Agent.

"**<u>Administrative Agent</u>**" means Banco Santander S.A., New York Branch and its permitted successors and assigns in such capacity.

"**<u>Administrative Agent's Account</u>**" shall mean the account designated by the Administrative Agent from time to time by notice to the Borrower.

"**<u>Advance</u>**" has the meaning set forth in **<u>Section 1.01</u>** (*Advances*).

"**<u>Advance Rate Percentage Stepdown Event</u>**" shall occur hereunder upon the occurrence of any of the following events:

Appendix A-1 *Definitions*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Three Month Average Delinquency Ratio is greater than as of the last day of any calendar month;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Three Month Average Default Ratio is greater than as of the last day of any calendar month; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Three Month Average Excess Spread Ratio is less than as of the last day of any calendar month.

"**<u>Affected Financial Institution</u>**" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"**<u>Affected Party</u>**" means each Lender and any assignee of such Lender.

"**<u>Affiliate</u>**" when used with respect to a Person, means any other Person controlling, controlled by, or under common control with, such Person.

"**<u>Aggregate Included Consumer Loan Balance</u>**" means, as of any date of determination, the aggregate amount of the Included Consumer Loan Balances of all Included Consumer Loans as of such date.

"**<u>Agreement</u>**" has the meaning set forth in the first paragraph of this **<u>Appendix A</u>**.

"**<u>Amortization Event</u>**" has the meaning set forth in **<u>Section 8.01</u>**.

"**<u>Amortization Rate</u>**" means a rate per annum equal to the Term SOFR plus .

"**<u>Applicable Advance Rate</u>**" means, with respect to each Included Consumer Loan, (i) so long as no Advance Rate Percentage Stepdown Event has occurred and is continuing, the lower of (a) the Advance Rate in the table below corresponding to the Prosper Score of such Consumer Loan and (b) the Maximum Advance Rate; and (ii) upon the occurrence and during the continuation of an Advance Rate Percentage Stepdown Event, the lower of (a) the Advance Rate in the table below corresponding to the Prosper Score of such Consumer Loan and (b) (it being understood that any Included Consumer Loan that does not have a corresponding Cohort in the table below shall be deemed to have an Advance Rate of 0%)

[Intentionally Omitted]

Appendix A-2 *Definitions*

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"**<u>Approvals</u>**" has the meaning set forth in **<u>Section 6.01(d)</u>** (*Governmental Approvals*).

"**<u>Approved State</u>**" has the meaning given to such term in the Purchase and Sale Agreement.

"**<u>Assignment and Acceptance</u>**" means an Assignment and Acceptance Agreement in substantially the form and substance of **<u>Exhibit F</u>** (*Form of Assignment and Acceptance*) attached hereto.

"**<u>Authorized Officer</u>**" means, with respect to any Person, any of the chief executive officer, president, chief financial officer, managing director, treasurer, comptroller, vice president or other officer of similar or higher rank of such Person, who is acting in its capacity as an officer of such Person and authorized to act on behalf of such Person pursuant to the Transaction Documents and who is identified on the incumbency certificate delivered by such Person Party to the Administrative Agent on the Closing Date (as any such incumbency certificate may be modified or supplemented by such Person Party from time to time thereafter and delivered to the Administrative Agent).

"**<u>Available Funds</u>**" means, with respect to any Settlement Date, (i) all Collections received by the Servicer and deposited into the Collection Account during the related Collection Period, (ii) all Repurchase Amounts, (iii) all amounts deposited by the Borrower into the Collection Account under **<u>Section 12.15</u>** (*Permitted Releases*), (iv) any Investment Earnings deposited into the Collection Account during the related Collection Period, (v) all amounts deposited into the Collection Account pursuant to clause ninth of **<u>Section 3.03(a)</u>** (*Distributions Prior to an Amortization Event, an Event of Default, or the Final Payout Date*) above, and (vi) all proceeds or other amounts received by a Lender or the Administrative Agent upon the exercise of such party's rights and remedies set forth in Section 8.03(e) (*Additional Remedies*).

"**<u>Available Tenor</u>**" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (a) if such Benchmark is a term rate, any tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this Agreement or (b) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to **<u>Section 2.07(d)</u>**.

"**<u>Back-Up Servicing Agreement</u>**" means the back-up servicing agreement, among the Servicer, the Trustee and the Back-Up Servicer, dated December 12, 2025, and as it may from time to time be amended, replaced, extended, or otherwise renewed in accordance with the terms thereof.

Appendix A-3 *Definitions*

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"**<u>Back-Up Servicer</u>**" means Systems & Services Technologies, Inc., and any successor thereto as may be chosen by Servicer and Borrower and consented to by the Administrative Agent.

"**<u>Back-Up Servicer's Fee</u>**" means the Servicing Fee (as defined in the Back-Up Servicing Agreement).

"**<u>Bail-In Action</u>**" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"**<u>Bail-In Legislation</u>**" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time that is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).

"**<u>Bank</u>**" has the meaning given to such terms in the Purchase and Sale Agreement.

"**<u>Bank Program</u>**" has the meaning given to such terms in the Purchase and Sale Agreement.

"**<u>Bankruptcy Code</u>**" means 11 U.S.C. §101, et. seq., as amended from time to time, and any successor statute thereto.

"**<u>Bankruptcy Opinions</u>**" has the meaning set forth in **<u>Section 7.01(k)(xxi).</u>**

"**<u>Benchmark</u>**" means, initially, the Term SOFR Reference Rate; provided that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to **<u>Section 2.07(a).</u>**

"**<u>Benchmark Replacement</u>**" means the first alternative set forth in the order below that can be determined by the Administrative Agent for the applicable Benchmark Replacement Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Daily Simple SOFR; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the sum of: (i) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower giving due consideration to (A) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (B) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement to the then-current Benchmark for Dollar-denominated syndicated credit facilities and (ii) the related Benchmark Replacement Adjustment.

Appendix A-4 *Definitions*

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If the Benchmark Replacement as determined pursuant to clause (a) or (b) above would be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement and the other Transaction Documents.

"**<u>Benchmark Replacement Adjustment</u>**" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"**<u>Benchmark Replacement Conforming Changes</u>**" means, with respect to the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "ABR," the definition of "Business Day," the definition of "U.S. Government Securities Business Day," the definition of "Interest Period" or any similar or analogous definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, and other technical, administrative or operational matters) that the Administrative Agent reasonably and in good faith (and in consultation with the Borrower) decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent reasonably and in good faith decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines reasonably and in good faith that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent reasonably and in good faith (in consultation with the Borrower) decides is reasonably necessary in connection with the administration of this Agreement and the other Transaction Documents).

"**<u>Benchmark Replacement Date</u>**" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component thereof); or

Appendix A-5 *Definitions*

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which all Available Tenors of such Benchmark (or the published component used in the calculation thereof) have been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such clause (c) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"**<u>Benchmark Transition Event</u>**" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof), the Federal Reserve Board, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will not be, representative.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"**<u>Benchmark Unavailability Period</u>**" means the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with **<u>Section 2.07</u>** and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with **<u>Section 2.07</u>.**

Appendix A-6 *Definitions*

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"**<u>Borrower</u>**" has the meaning set forth in the Preamble.

"**<u>Borrower GP</u>**" means PALCO LVS 6 GP LLC, a Delaware limited liability company.

"**<u>Borrower Representatives</u>**" has the meaning set forth in **<u>Section 12.12(b)(i)</u>.**

"**<u>Borrowing Base</u>**" means, as of any date, the difference between (x) the aggregate sum, for all Included Consumer Loans as of such date, of the product of (i) the Applicable Advance Rate <u>multiplied by</u> (ii) the lesser of (A) the Included Consumer Loan Balance of each such Included Consumer Loan and (B) the Purchase Price of such Included Consumer Loan <u>minus</u> (y) the Excess Concentration.

"**<u>Borrowing Date</u>**" means each date on which an Advance is made.

"**<u>Borrowing Request</u>**" has the meaning set forth in **<u>Section 1.02(a)</u>** (*Borrowing Request*).

"**<u>Breakage Costs</u>**" shall mean, with respect to (a) a failure by the Borrower, for any reason other than a failure by a Lender to deposit funds in accordance with **<u>Section 1.02(b)</u>** (*Funding*), to borrow any proposed Advance on the date specified in a Borrowing Request (including without limitation, as a result of the Borrower's failure to satisfy any conditions precedent to such borrowing), or (b) a prepayment of any Advance other than in connection with a Permitted Release, the resulting loss, cost or expense actually incurred by any Lender, including, but not limited to, any loss, cost or expense incurred in liquidating or employing deposits from third parties; provided, however, that with respect to the losses, costs or expenses incurred in connection with clause (a) above, such losses, costs or expenses shall not exceed the amount such Lender would have expected to receive as interest on such Advance at the interest rate on such Advance which would have been payable by the Borrower if the Borrower had borrowed such proposed Advance for a period from the date of the proposed Advance to the next Settlement Date.

"**<u>Business Day</u>**" means any day other than a Saturday or Sunday or other day on which banks are authorized or required to close in New York, New York; provided, however, that when used with respect to the Servicer's deposit of Collections, a day on which the Servicer and financial institution(s) through which it processes payments are open for business.

"**<u>Capital Lease Obligations</u>**" of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such Person under GAAP and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP; **provided** that the adoption or issuance of any accounting standards after the Closing Date will not cause any lease that was not or would not have been a capital lease prior to such adoption or issuance to be deemed a capital lease.

Appendix A-7 *Definitions*

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"**<u>Change of Control</u>**" means that (a) the Limited Guarantors shall cease to collectively and directly own and control 100% of the Equity Interest of the Borrower, (b) the Borrower GP ceases to be the general partner of the Borrower, or (c) Borrower shall cease to beneficially own and control, directly or indirectly, 100% of the Equity Interest of the Trust; provided, however, that, any change in the ownership or voting power to which the Administrative Agent has provided its prior written consent shall not be considered a "Change of Control" for purposes hereof.

"**<u>Closing Date</u>**" means .

"**<u>Code</u>**" means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.

"**<u>Collateral</u>**" means all of the Borrower's assets, properties, and rights, now or hereafter existing, including (without limitation) all of the Borrower's right, title and interest now or hereafter existing in, to and under the following: (i) the Trust Interests; (ii) the Collection Account and any other account established by the Borrower pursuant to this Agreement and all investments therein (including Eligible Investments); (iii) all funds on deposit in the accounts described in **<u>clause (ii)</u>**, together with all certificates and instruments, if any, from time to time evidencing such accounts, and funds on deposit and all investments made with such funds (including Eligible Investments), all claims thereunder or in connection therewith, and interest, dividends, moneys, instruments, securities and other property from time to time received, receivable or otherwise distributed in respect of any or all of the foregoing; (iv) the Purchase and Sale Agreement, the Servicing Agreement, the Back-Up Servicing Agreement, the Multi-Party Agreement, the other Transaction Documents and each other document, instrument, certificate and agreement relating to the origination, acquisition, collecting, servicing or administration of any Pledged Consumer Loan or the transactions contemplated by the Transaction Documents; (v) all books and records (including computer tapes and disks) related to the foregoing; (vi) all other goods (including inventory, equipment and any accessions thereto), instruments (including promissory notes), documents, accounts, chattel paper (whether tangible or electronic), deposit accounts, money, letter-of-credit rights, commercial tort claims, securities and other investment property, supporting obligations, any other contract rights or rights to the payment of money, insurance claims and proceeds, and all general intangibles (including all payment intangibles); (vii) all Unapplied Cash; (viii) the Trust Collateral; (ix) all Collections and other proceeds of any and all of the foregoing; **<u>but</u> <u>excluding</u>**, **<u>however</u>**, (a) funds released pursuant to **<u>Section 3.03</u>** (*Distributions from the Collection Account*) hereof, (b) Consumer Loans repurchased by the Seller pursuant to the terms of the Purchase and Sale Agreement, (c) Consumer Loans released pursuant to **<u>Section 2.03</u>** (*Repayments and Prepayments*) above and (d) Collateral (if any) expressly released in writing by the Administrative Agent.

"**<u>Collection Account</u>**" means the account established by the Borrower at the Account Institution in the name of the Borrower, which account has been designated as the "Collection Account" and any other account designated as the "Collection Account" by the Administrative Agent (with the consent of the Borrower; **<u>provided</u>** that no such consent shall be required following the occurrence of an Event of Default or Servicer Event of Default), in each case together with all subaccounts thereof.

"**<u>Collection Period</u>**" means: (i) with respect to the first Settlement Date, the period commencing on the Closing Date and ending at the close of business on December 31, 2025, and (ii) thereafter, each calendar month.

Appendix A-8 *Definitions*

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"**<u>Collections</u>**" means, without duplication, all funds which are received by the Servicer, or any other Person from or on behalf of the Obligors in payment of any amounts owed (including all principal payments, all interest and finance charges and all other charges) in respect of the Pledged Consumer Loans, or applied to such amounts owed by such Obligors.

"**<u>Commitment Amount Buffer</u>**" means .

"**<u>Connection Income Taxes</u>**" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**<u>Consumer Laws</u>**" means federal and State interest and usury laws, the federal Truth-in-Lending Act, the federal Equal Credit Opportunity Act ("**ECOA**"), the federal Fair Credit Reporting Act ("**FCRA**"), the federal Fair Debt Collection Practices Act, the Federal Trade Commission Act and all applicable Federal Trade Commission Trade Regulation Rules, the Federal Reserve Board's Regulations B and Z, the Servicemembers Civil Relief Act, the California Military Reservist Relief Act and any other federal, state or local law relating to credit extensions to servicemembers, State adaptations of the National Consumer Act and of the Uniform Consumer Credit Code, rules and regulations promulgated by the Consumer Financial Protection Bureau, all other federal, State and local consumer credit laws and other consumer protection laws relating to the conduct of the business of the Seller, the Trust, the Borrower or the Trustee, laws requiring the licensing of consumer finance companies and/or lenders, the UCC as it relates to unsecured loans, state and local laws proscribing unlawful, unfair and/or deceptive acts and practices, federal, state and local laws relating to privacy and/or data security, and any rules, regulations and/or interpretations of the foregoing laws.

"**<u>Consumer Loan</u>**" means an unsecured consumer loan, and shall include (a) all disbursements made pursuant to the Consumer Loan Notes; all right, title and interest in and to the Consumer Loan File and all other agreements or documents that relate to such Consumer Loan; (c) all Guarantees and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Consumer Loan, (d) all right to payment of principal from or on behalf of each Obligor under such Consumer Loan; (e) all right to payment of interest, fees, charges and other amounts from or on behalf of each Obligor under such Consumer Loan after the date on which such Consumer Loan becomes a Pledged Consumer Loan; (f) all books and records (including computer tapes and disks) related to the foregoing; (g) all Unapplied Cash; and (h) all Collections and other proceeds of such Consumer Loan or any and all of the foregoing.

"**<u>Consumer Loan Files</u>**" means, with respect to any Consumer Loan, the Consumer Loan Note and any other records and documentation relating to the Consumer Loan that is required to be delivered to the Servicer under the Servicing Agreement.

"**<u>Consumer Loan Notes</u>**" means, collectively, the promissory notes, credit agreements or other records or writings evidencing the Consumer Loans and the indebtedness thereunder, and shall include the applicable regulatory statements (including truth-in-lending, Gramm-Leach-Bliley and ECOA and FRCA disclosures, as applicable) with respect to each advance constituting all or part of such Consumer Loans.

Appendix A-9 *Definitions*

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"**<u>Control</u>**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.

"**<u>Controlling</u>**" and "**<u>Controlled</u>**" have meanings correlative thereto.

"**<u>Credit Guidelines</u>**" has the meaning given to such terms in the Purchase and Sale Agreement.

"**<u>Credit Party</u>**" means each of the Borrower (including in its capacity as the Program Manager) and the Trust.

"**<u>Credit Score</u>**" means for any Consumer Loan a FICO<sup>®</sup> 08 Score credit risk score for the Obligor of such Consumer Loan as determined by a credit bureau, running between **<u>300</u>** and **<u>850</u>**.

"**<u>Daily Simple SOFR</u>**" means, for any day, SOFR, with the conventions for this rate (which will include a lookback) being established by the Administrative Agent in accordance with the conventions for this rate selected or recommended by the Relevant Governmental Body for determining "Daily Simple SOFR" for syndicated business loans; provided that if the Administrative Agent decides that any such convention is not administratively feasible for the Administrative Agent, then the Administrative Agent may establish another convention in its reasonable discretion.

"**<u>Default Rate</u>**" means a rate per annum equal to the Term SOFR plus .

"**<u>Default Ratio</u>**" means, for any Collection Period, the product of (i) 12 and (ii) the ratio (expressed as a percentage) equal to (a) the aggregate Principal Balance of all the Pledged Consumer Loans that became Defaulted Consumer Loans during such calendar month, divided by (b) the aggregate Principal Balance of all the Pledged Consumer Loans as of the first day of such calendar month.

"**<u>Defaulted Consumer Loan</u>**" means any Consumer Loan (i) that is 121 or more days past due with respect to any portion of any payment of principal or interest, (ii) with respect to which the related Eligible Borrower is the subject of an Event of Bankruptcy or is deceased, or (iii) that is (or should be) charged off under the Servicing Agreement in accordance with the Servicing Standard (as defined in the Servicing Agreement).

"**<u>Delinquency Ratio</u>**" means, for any Collection Period, the ratio (expressed as a percentage) equal to (a) the aggregate Principal Balance of all the Pledged Consumer Loans that became Delinquent Consumer Loans or remained a Delinquent Consumer Loan (and did not become a Defaulted Consumer Loan) during such calendar month, divided by (b) the aggregate Principal Balance of all the Pledged Consumer Loans as of the first day of such calendar month.

"**<u>Delinquent Consumer Loan</u>**" means any Consumer Loan (other than any Defaulted Consumer Loan) that is more than 30 days past due with respect to any portion of any payment of principal or interest and is not a Defaulted Consumer Loan.

Appendix A-10 *Definitions*

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"**<u>Delinquent (60)</u> Consumer Loan**" means any Consumer Loan (other than any Defaulted Consumer Loan) that is more than 60 days past due with respect to any portion of any payment of principal or interest and is not a Defaulted Consumer Loan.

"**<u>Determination Date</u>**" means the date which is the second Business Day prior to the Settlement Date.

"**<u>DTI Ratio</u>**" in the case of an Obligor, the ratio of (a) the Obligor's nonmortgage monthly payment obligations reported on such Obligor's credit report to (b) the self-reported monthly income of such Obligor.

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

"**<u>EEA Member Country</u>**" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"**<u>EEA Resolution Authority</u>**" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

[Intentionally Omitted]

Appendix A-11 *Definitions*

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"**<u>Eligible Institution</u>**" means a depository institution organized under the laws of the United States of America or any one of states of the United States of America or the District of Columbia (or any domestic branch of a foreign bank) whose deposits are insured by the FDIC to the fullest extent permitted by applicable law; provided, that such institution also must be rated by Moody's or S&P and may not have a long-term unsecured debt rating from Moody's or from S&P.

Appendix A-12 *Definitions*

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"**<u>Eligible Investments</u>**" means any U.S. Dollar denominated investment maturing (or, in the case of money market funds, redeemable by its terms at par) not later than the Business Day before the next Settlement Date that, at the time it is delivered to the Administrative Agent (directly or through a financial intermediary or bailee), is one or more of the following obligations or securities: (i) demand and time deposits in, certificates of deposit of, interest-bearing trust accounts held by, bankers' acceptances issued by, or federal funds sold by any depository institution or trust company incorporated under the laws of the United States of America (including the Administrative Agent) or any State thereof and subject to supervision and examination by federal and/or State banking authorities so long as the commercial paper and/or the debt obligations of such depository institution or trust company (or, in the case of the principal depository institution in a holding company system, the commercial paper or debt obligations of such holding company) at the time of such investment or contractual commitment providing for such investment have a credit rating of "P-1" by Moody's and at least "A-1" by S&P, in the case of commercial paper and short-term debt obligations; (ii) direct obligations of, and obligations the timely payment of principal and interest on which is fully and expressly guaranteed by, the United States of America or any agency or instrumentality of the United States of America the obligations of which are expressly backed by the full faith and credit of the United States of America; (iii) money market funds which funds have, at all times, credit ratings of "Aaa" and "MR1+" by Moody's or "AAAm" or "AAAm-G" by S&P, respectively; and (iv) commercial paper or other short-term obligations with short-term credit ratings of "P-l" from Moody's and at least "A-l" from S&P.

"**<u>Equity Interests</u>**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest.

"**<u>ERISA</u>**" means the Employee Retirement Income Security Act of 1974, as amended from time to time.

"**<u>ERISA Affiliate</u>**" means (i) any corporation which is a member of the same controlled group of corporations (within the meaning of Section 414(b) of the Code) as the Borrower, (ii) any partnership or other trade or business (whether or not incorporated) under common control (within the meaning of Section 414(c) of the Code) with the Borrower, (iii) any member of the same affiliated service group (within the meaning of Section 414(m) or (o) of the Code) as the Borrower or any corporation described in clause (i) above or any partnership, trade or business described in clause (ii) above, or (iv) any trade or business (whether or not incorporated) which, together with the Borrower, would be treated as a single employer under Section 4001 of ERISA.

"**<u>EU Bail-In Legislation Schedule</u>**" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"**<u>EU Securitisation Regulation</u>**" means Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 as supplemented by any applicable regulatory technical standards or implementing technical standards from time to time (including any technical standards applicable pursuant to transitional provisions).

"**<u>EU Securitisation Rules</u>**" means (i) the EU Securitisation Regulation, (ii) to the extent informing the interpretation of the EU Securitization Regulation, any official guidance published in relation thereto by the European Banking Authority, the European Central Bank, the European Securities and Markets Authority, the European Commission or the European Council (or in each case any predecessor or replacement organization) or any other relevant competent authority (for the purposes of the EU Securitization Regulation) in the European Union and (iii) any implementing laws or regulations in force in any Member State of the European Union or the European Economic Area.

Appendix A-13 *Definitions*

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"**Event of Bankruptcy**" shall be deemed to have occurred with respect to a Person if either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a case or other proceeding shall be commenced, without the application or consent of such Person, in any court,
seeking the liquidation, reorganization, debt arrangement, dissolution, winding up, or composition or readjustment of debts of such Person, the appointment of a trustee, receiver, conservator, custodian, liquidator, assignee, sequestrator or the
like for such Person or all or substantially all of its assets, or any similar action with respect to such Person under any law relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of debts and, in the case of
any Person other than an Obligor, such case or proceeding shall continue undismissed, or unstayed and in effect, for a period of 60 consecutive days; or an order for relief in respect of such Person shall be entered in an involuntary case under the
federal bankruptcy laws or other similar laws now or hereafter in effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person shall commence a voluntary case or other proceeding under any applicable bankruptcy, insolvency,
reorganization, debt arrangement, dissolution or other similar law now or hereafter in effect, or shall consent to the appointment of or taking possession by a receiver, conservator, liquidator, assignee, trustee, custodian, sequestrator (or other
similar official) for, such Person or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as they become due,
or, if a corporation or similar entity, its board of directors shall vote to implement any of the foregoing.

"**<u>Event of Default</u>**" has the meaning set forth in **<u>Section</u> 8.02** (*Events of Default*).

[Intentionally Omitted]

Appendix A-14 *Definitions*

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[Intentionally Omitted]

"**<u>Exchange Act</u>**" means the Securities and Exchange Act of 1934, as amended.

"**<u>Excluded Taxes</u>**" means any of the following Taxes imposed on or with respect to a Lender or required to be withheld or deducted from a payment to a Lender, (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Lender being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in an Advance pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Advance (other than pursuant to an assignment request by the Borrower pursuant to **<u>Section 4.02(d)</u>** above) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to **<u>Section 2.06</u>** (*Taxes*), amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Lender's failure to comply with **<u>Section 2.06(g)</u>** (*Status of Lenders*) and (d) any U.S. federal withholding Taxes imposed under FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbs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Appendix A-15 *Definitions*

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"**<u>FATCA</u>**" means Sections 1471 through 1474 of the Code as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code.

"**<u>FCPA</u>**" has the meaning set forth in **<u>Section 6.01(v)</u>** (*Sanctions; FCPA*).

"**<u>FDIC</u>**" means the Federal Deposit Insurance Corporation of the United States of America.

"**<u>Federal Funds Rate</u>**" means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100th of 1%) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided, that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (adjusted, if necessary, to the nearest 1/100 of 1%) charged to the Administrative Agent or its Affiliates on such day on such transactions as determined by it.

"**<u>Federal Reserve Board</u>**" means the Board of Governors of the Federal Reserve System, or any successor thereto or to the functions thereof.

"**<u>Final Maturity Date</u>**" means the earliest of (i) twelve (12) months following the Revolving Period End Date, and (ii) the Final Maturity Date resulting from (a) a declaration by the Administrative Agent, with the consent of or upon direction of the Required Lenders, following the occurrence of an Event of Default pursuant to **<u>Section 8.03(a)</u>** or (b) the automatic occurrence of the Final Maturity Date pursuant to **<u>Section 8.03(b)</u>.**

"**<u>Final Payout Date</u>**" means the date on which all principal of and interest on the Loan Amount shall have been paid in full and all other Secured Obligations shall have been paid and satisfied in full.

"**<u>Forbearance Consumer Loan</u>**" means any Consumer Loan that is in a forbearance status, under which the borrower of such Consumer Loan is not required to make monthly payments on such Consumer Loan at least equal to the amount of interest that has accrued.

"**<u>Foreign Lender</u>**" means a Lender that is not a U.S. Person.

"**<u>Fundamental Amendment</u>**" means any amendment, modification, waiver or supplement of or to this Agreement or any other Transaction Document that would (a) increase the term of this Agreement or change the Final Maturity Date, (b) extend the date fixed for the payment of principal of or interest on any Advance or any fee hereunder, (c) reduce the amount of any such payment of principal, (d) reduce the rate at which interest is payable thereon or any fee is payable hereunder, (e) release any material portion of the Collateral, except in connection with dispositions permitted hereunder or under any Transaction Document, (f) alter the terms of **<u>Section 8.01</u>** (*Amortization Events*) or **<u>Section 8.02</u>** (*Events of Default*) (provided, however, that, notwithstanding anything to the contrary in **<u>Section 8.02</u>** (*Events of Default*) or otherwise herein,

Appendix A-16 *Definitions*

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the Administrative Agent and the Required Lenders, in their sole discretion, may allow the Credit Parties to cure any Event of Default within no more than **<u>three</u>** Business Days after the occurrence of such Event of Default (including the lapse of any applicable grace period) and, if such Credit Party cures such Event of Default to the satisfaction of the Administrative Agent and the Required Lenders within such period of time, such Event of Default shall be deemed waived by the Lenders), **<u>Section</u> <u>9.01</u>** (*Assignments*), **<u>9.03</u>** (*Evidence of Assignment*) or **<u>12.01</u>** (*Amendments, Etc*.), (g) modify the definition of the terms "Amortization Event," "Defaulted Consumer Loan," "Delinquent Consumer Loan," "Fundamental Amendment," "Required Lenders," "Program Limit," "Borrowing Base," "Eligible Consumer Loan", or "Advance Rate" or modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, (h) extend the Revolving Period End Date, (i) release any Credit Party from its obligations under any Transaction Document, (j) terminate or remove the Seller's obligations to repurchase loans pursuant to the Purchase and Sale Agreement or (k) change the currency required for payments of Obligations under this Agreement.

"**<u>GAAP</u>**" means generally accepted accounting principles in the United States of America, consistently applied.

"**<u>Governmental Authority</u>**" means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any body or entity exercising executive, legislative, judicial, regulatory or administrative functions or pertaining to government, including without limitation any court, and any Person owned or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

"**<u>Guarantee</u>**" of or by any Person (the "**<u>guarantor</u>**") means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any indebtedness or other obligation of any other Person (the "**<u>primary obligor</u>**") in any manner, whether directly or indirectly, and including any obligation of the guarantor, direct or indirect, to purchase or pay (or advance or supply funds for the purchase or payment of) such indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such indebtedness or obligation.

"**<u>Included Consumer Loan Balance</u>**" means, as of any date of determination, the Principal Balance of such Included Consumer Loan as of such date.

"**<u>Included Consumer Loans</u>**" means, as of any date of determination, any Consumer Loan owned by the Trustee on behalf of the Trust that is an Eligible Consumer Loan; **<u>provided</u>**, that, notwithstanding the foregoing, (1) Consumer Loans which were or became Defaulted Consumer Loans as of the beginning of such Collection Period and (2) Consumer Loans which were repurchased or purchased during such Collection Period pursuant to **<u>Section 6.03</u>** shall not be Included Consumer Loans.

Appendix A-17 *Definitions*

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"**<u>Indebtedness</u>**" of any Person at any date means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than current trade payables incurred in the ordinary course of such Person's business and excluding payroll liabilities, deferred compensation obligations, purchase price adjustments, royalties and earn-outs and other contingent or deferred payments of a similar nature), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, all Indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Capital Lease Obligations of such Person, (f) Indebtedness incurred to finance the acquisition, construction or improvement of any fixed or capital asset, (g) all obligations of such Person, contingent or otherwise, as an account party or applicant under or in respect of bankers' acceptances, letters of credit, surety bonds or similar arrangements, (h) all Guarantees of such Person in respect of obligations of the kind referred to in clauses (a) through (g) above, and (i) all obligations of the kind referred to in clauses (a) through (h) above secured by (or for which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned or acquired by such Person, whether or not such Person has assumed or become liable for the payment of such obligation; provided that Indebtedness shall not include obligations with respect to any accounts or funds, or any portion thereof, received by such Person as agent on behalf of third parties in accordance with a written agreement that imposes a duty upon such Person to collect and remit those funds to such third parties; provided, further, that any Indebtedness that is collateralized by a letter of credit, bankers acceptances or similar arrangement for which such is an account party or applicant shall be treated as only one item of Indebtedness in an amount equal to the greater of the maximum aggregate principal amount of such Indebtedness or the amount of such backstop letter of credit, bankers' acceptance, or similar arrangement.

"**<u>Indemnified Amounts</u>**" has the meaning set forth in **<u>Section 10.01(a)</u>** (*Indemnity by Borrower*).

"**<u>Indemnified Party</u>**" has the meaning set forth in **<u>Section 10.01(a)</u>** (*Indemnity by Borrower*).

"**<u>Indemnified Taxes</u>**" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Credit under any Transaction Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**<u>Indemnifying Party</u>**" means the Borrower under **<u>Section 10.01(a)</u>** (*Indemnity by Borrower*).

"**<u>Independent Member</u>**" means a member of the board of directors or managers of the Borrower GP who (i) shall not have been at the time of such Person's appointment or at any time during the preceding five years, and shall not be as long as such Person is a director or manager of the Borrower GP, (A) a director, officer, employee, partner, shareholder, member, manager or Affiliate of any of the following Persons (collectively, the "Independent Parties"): the Sponsor or any of its Affiliates (other than the Borrower GP or another bankruptcy-remote special purpose entity), (B) a supplier to any of the Independent Parties, or a director, officer, employee, partner,

Appendix A-18 *Definitions*

------

shareholder, member, manager or Affiliate of such a supplier, (C) a Person controlling or under common control with any partner, shareholder, member, manager, Affiliate or supplier of any of the Independent Parties, or (D) a member of the immediate family of any director, officer, employee, partner, shareholder, member, manager, Affiliate or supplier of any of the Independent Parties; (ii) has prior experience as an independent director, independent manager or special member for a corporation or limited liability company whose charter or organizational documents required the unanimous consent of all independent directors, independent managers or special members thereof before such corporation or limited liability company could consent to the institution of bankruptcy or other insolvency proceedings against it or could file a petition seeking relief under any applicable federal or state law relating to bankruptcy and (iii) has at least three years of employment experience with one or more entities that provide, in the ordinary course of their respective businesses, advisory, management or placement services (including providing independent managers or managers) to issuers of securitization or structured finance instruments, agreements or securities.

"**<u>Interest Period</u>**" means, with respect to each Advance: (a) initially, the period from the Closing Date to the first subsequent Settlement Date and (b) thereafter, each monthly period from a Settlement Date to the next succeeding Settlement Date.

"**<u>Interest Rate</u>**" means a rate per annum equal to Term SOFR plus .

"**<u>Investment Company Act</u>**" has the meaning set forth in **<u>Section 6.01(j)</u>** (*Not an Investment Company*).

"**<u>Investment Earnings</u>**" means, with respect to each Settlement Date, all investment earnings (net of losses and investment expenses) realized on investments and other amounts which were on deposit in the Collection Account during the related Collection Period.

"**<u>IRS</u>**" means the United States Internal Revenue Service.

"**<u>Lender</u>**" means each financial institution listed on the signature pages hereto as a Lender, and any other Person that becomes a party hereto pursuant to an Assignment and Acceptance. The initial "Lender" shall be Banco Santander S.A., New York Branch

"**<u>Lien</u>**" means any interest in property securing an obligation owed to, judgment in favor of, or a claim by, a Person other than the owner of the property, whether such interest is based on the common law, statute or contract, and including but not limited to the security interest or lien arising from a mortgage, encumbrance, pledge, conditional sale or trust receipt for a lease, consignment or bailment for security purposes. The term "Lien" shall include reservations, exceptions, encroachments, easements, rights of way, covenants, conditions, restrictions, leases and other title exceptions and encumbrances affecting property.

"**<u>Limited Guaranty</u>**" means that Limited Guaranty, dated as of the Closing Date, by the Limited Guarantors, in favor of the Administrative Agent and the Secured Parties, as the same may be amended, restated, modified or supplemented from time to time.

"**<u>Limited Guarantors</u>**" means PIMCO Asset-Based Lending Company LLC – Series I, a registered series of PIMCO Asset-Based Lending Company, LLC, a Delaware limited liability company, and PIMCO Asset-Based Lending Company LLC – Series II, a registered series of PIMCO Asset-Based Lending Company, LLC, a Delaware limited liability company.

Appendix A-19 *Definitions*

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"**<u>Loan Amount</u>**" at any time means the sum of (a) the aggregate amount disbursed to the Borrower by the Lenders in connection with the funding of Advances pursuant to this Agreement, less (b) any payments made by the Borrower and actually received by or on behalf of the Lenders and applied to reduce the principal balance of the Advances pursuant to **<u>Section 2.03</u>** (*Repayments and Prepayments*), **<u>3.03</u>** or **<u>8.03</u>** of this Agreement (which have not been rescinded or otherwise returned for any reason); provided, however, that if the Loan Amount shall have been reduced, pursuant to clause (b) above by any distribution, and thereafter all or a portion of such distribution is rescinded or must otherwise be returned for any reason, the Loan Amount shall be increased by the amount of such rescinded or returned distribution as though it had not been made.

"**<u>Location</u>**" means, with respect to any Person, the location within the meaning of Section 9-307 of the UCC as in effect in the State of New York from time to time.

"**<u>Material Adverse Change</u>**" means the occurrence of an event or a change in circumstances that had or is reasonably likely to have a Material Adverse Effect.

"**<u>Material Adverse Effect</u>**" with respect to any event or circumstance and any Person or the Pledged Consumer Loans, means a material adverse effect on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the business, assets, financial condition or results of operations of the Borrower, the Trust, the Servicer and
any of their respective Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the ability of the Borrower, the Trust, the Servicer or any of their respective Affiliates to perform their
respective obligations under this Agreement or any other Transaction Document to which they are a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower's or the Trust's ownership of the Collateral, the first-priority perfected security
interest of the Administrative Agent in the Collateral, or the rights or remedies of the Administrative Agent under the Transaction Documents; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the validity, or enforceability of this Agreement, or any other Transaction Document against the Borrower, the
Trust, the Servicer or any of their respective Affiliates;

<u>provided</u>, <u>however</u>, <u>that</u>, "Material Adverse Effect" shall not include any effect, change, event or development related to or arising from (A) changes in GAAP or, if applicable, regulatory accounting requirements, (B) direct effects of compliance with this Agreement or any other Transaction Document on the operating performance of the Borrower or any of its Subsidiaries (including, without limitation, expenses incurred by the Borrower or any of its Subsidiaries in consummating the transactions contemplated by this Agreement or any other Transaction Document), (C) any action or omission taken by the Borrower with the prior written consent of the Administrative Agent, (D) national, international or extranational political or social conditions, including acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening thereof, or (E) earthquakes, hurricanes, tsunamis, tornadoes, floods, mudslides, wildfires or other natural disasters, weather conditions and other force majeure events in the U.S. or any other country or region in the world.

Appendix A-20 *Definitions*

------

"**<u>Maximum Advance Rate</u>**" means .

"**<u>Maximum Commitment Amount</u>**" means .

"**<u>Monthly Report</u>**" means a report, in substantially the form of **<u>Exhibit H</u>** (*Form of Monthly Report*) furnished by the Borrower to the Administrative Agent.

"**<u>Moody's</u>**" means Moody's Investors Service, Inc.

"**<u>Non-Consenting Lender</u>**" means any Lender that does not approve any consent, waiver or amendment that requires the approval of all Lenders or all affected Lenders.

"**<u>Note</u>**" has the meaning set forth in **<u>Section 2.01</u>** (*Note*).

"**<u>Obligations</u>**" means all obligations of every nature of the Borrower from time to time owed to the Lenders, in each case under any Transaction Document, whether for principal, interest (including interest which, but for the filing of a petition in bankruptcy with respect to the Borrower, would have accrued on any Obligation, whether or not a claim is allowed against the Borrower for such interest in the related bankruptcy proceeding), fees, expenses, indemnification or otherwise.

"**<u>Obligor</u>**" means any Person primarily or secondarily obligated to make payments with respect to a Consumer Loan, including, to the extent applicable, the borrower, a co-borrower and any guarantor.

"**<u>OFAC</u>**" has the meaning set forth in **<u>Section 6.01(u)</u>** (*Sanctions; OFAC*).

"**<u>Other Connection Taxes</u>**" means, with respect to any Lender, Taxes imposed as a result of a present or former connection between such Lender and the jurisdiction imposing such Tax (other than connections arising from such Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Transaction Document, or sold an interest in any Advance or Transaction Document).

"**<u>Other Taxes</u>**" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Transaction Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to **<u>Section 4.02(d))</u>.**

"**<u>Participant</u>**" has the meaning set forth in **<u>Section 9.01(d)</u>.**

"**<u>Participant Register</u>**" has the meaning set forth in **<u>Section 9.01(f)</u>.**

Appendix A-21 *Definitions*

------

"**<u>Percentage</u>**" means (i) with respect to the Initial Lender, and (ii) with respect to a Lender that has become a party hereto pursuant to an Assignment and Acceptance, the percentage set forth therein as such Lender's "Assigned Percentage," in each case, as such amount is reduced by an Assignment and Acceptance entered into between such Lender and an assignee or increased by any Assignment and Acceptance entered into by such Lender with an assignor.

"**<u>Permitted Release</u>**" means a release of Pledged Consumer Loans in connection with (a) a Whole Loan Sale, (b) a Securitization Transaction, (c) a Repurchase of a Pledged Consumer Loan, or (d) a prepayment the Obligations in whole or in part pursuant to **<u>Section</u> 2.03(d)**; provided, however, that, no release of Collateral pursuant to any of clause (a), (b), (c) or (d) above shall be effected unless and until the Administrative Agent has determined in its sole discretion that such release shall not result in a materially adverse selection of Pledged Consumer Loans remaining part of the Borrowing Base following such release.

"**<u>Person</u>**" means an individual, partnership, corporation, business trust, joint stock company, limited liability company, trust, unincorporated association, joint venture, government or any agency or political subdivision thereof or any other entity.

"**<u>Pledged Consumer Loans</u>**" means, as of any date, all the Consumer Loans owned by the Trust.

"**<u>Prime Rate</u>**" means the rate of interest last quoted by The Wall Street Journal as the "Prime Rate" in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the Administrative Agent). Each change in the Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

"**<u>Principal Balance</u>**" means, with respect to any date and any Consumer Loan, the outstanding principal amount of such Consumer Loan, plus any financed fees and accrued and unpaid interest to be capitalized thereon, as of such date.

"**<u>Principal Payment Amount</u>**" means, (a) for any Settlement Date prior to the occurrence of an Amortization Event or the Final Maturity Date, the amount, if any, by which the Loan Amount on such Settlement Date exceeds the Borrowing Base on such Settlement Date and (b) for any date, amounts paid pursuant to **<u>Section 2.03</u>** (*Repayments and Prepayments*).

"**<u>Product Information</u>**" has the meaning set forth in **<u>Section 12.12(b)</u>.**

"**<u>Program Limit</u>**" means as of (a) the Closing Date, the Commitment Amount Buffer and (b) any other date of determination, the sum of (i) then current outstanding Loan Amount plus (ii) the then then current Commitment Amount Buffer as such amount may be increased pursuant to **<u>Section 1.01(b)</u>**; provided that the Program Limit shall not exceed the Maximum Commitment Amount.

"**<u>Program Manager</u>**" has the meaning set forth in the Preamble.

Appendix A-22 *Definitions*

------

"**<u>Program Requirements</u>**" means the Credit Guidelines applicable to the Bank Program adopted by the Seller with respect to the underwriting and origination of the Consumer Loans, as amended from time to time in accordance with the terms of this Agreement. The Program Requirements as of the Closing Date are set forth in **<u>Exhibit I</u>** (*Program Requirements*) attached hereto.

"**<u>Prosper Score</u>**" has the meaning given to such to such term in the Purchase and Sale Agreement.

"**<u>Purchase and Sale Agreement</u>**" means the Loan Purchase Agreement, dated as of September 30, 2022, between Prosper Funding LLC, as Seller, and the Trustee, as purchaser, together with all assignments and bills of sale associated with transfers of Consumer Loans thereunder.

"**<u>Purchase Date</u>**" means, with respect to any Pledged Consumer Loan, the effective date of the sale by the Seller, and the purchase by the Trust, of such Consumer Loan, as determined pursuant to Section 2.1 of the Purchase and Sale Agreement.

"**<u>Purchase Price</u>**" means, with respect to any Consumer Loan, the dollar amount paid by the Trust in acquiring such Consumer Loan from the Seller.

"**<u>Qualified Purchaser</u>**" means a "qualified purchaser" within the meaning of the Investment Company Act.

"**<u>Regulatory Change</u>**" has the meaning set forth in **<u>Section</u><u> </u><u>4.02(a)</u>**.

"**<u>Relevant Governmental Body</u>**" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"**<u>Repurchase Amount</u>**" means the "Repurchase Price" paid by the Seller in satisfaction of the Seller's obligation to repurchase Consumer Loans in accordance with Article 7 of the Purchase and Sale Agreement.

"**<u>Request</u>**" has the meaning set forth in **<u>clause (v)</u>** of **<u>7.01(p)</u>** (*Notice of Material Events*).

"**<u>Required Lenders</u>**" means, as of any date of determination, one or more Lenders having aggregate Percentages greater than .

"**<u>Requirements of Law</u>**" means as to any Person, the certificate of incorporation and bylaws or other organizational or governing documents of such Person, and any and all federal, state, local and/or applicable foreign statutes, ordinances, rules, regulations, court orders and decrees, administrative orders and decrees, and other legal requirements of any and every conceivable type applicable to the Pledged Consumer Loans, the Transaction Documents, the Borrower, the Trust, the Trustee, the Seller or the Servicer or any portion thereof, including, but not limited to, Consumer Laws, credit disclosure laws and regulations, the Fair Labor Standards Act, and all applicable state and federal usury laws.

Appendix A-23 *Definitions*

------

"**<u>Revolving Period</u>**" means the period (a) commencing on (and including) the Closing Date and (b) ending on (but excluding) the Revolving Period End Date.

"**<u>Revolving Period End Date</u>**" has the meaning set forth in **<u>Section 1.01</u>** (*Advances*).

"**<u>S&P</u>**" means Standard & Poor's Ratings Services, a business of Standard & Poor's Financial Services LLC (a subsidiary of The McGraw-Hill Companies, Inc.).

"**<u>Sanctions</u>**" has the meaning set forth in **<u>Section 6.01(u)</u>** (*Sanctions; OFAC*).

"**<u>Schedule of Pledged Consumer Loans</u>**" means a listing (which shall be in the form of an electronic data tape or other medium in each case reasonably acceptable to the Administrative Agent but, for the avoidance of doubt, not in microfiche or .pdf file) of all Pledged Consumer Loans, including a separate delineation of all Included Consumer Loans subject to a repayment, prepayment or Permitted Release, together with the information listed on **<u>Exhibit E</u>** (*Information to be Included in the Schedule of Pledged Consumer Loans*) to this Agreement and such other information that is reasonably requested by the Administrative Agent from time to time and reasonably available to the Borrower, as such listing may be amended, restated, supplemented or otherwise modified from time to time in accordance with this Agreement.

"**<u>SEC</u>**" means the United States Securities and Exchange Commission.

"**<u>Secured Obligations</u>**" has the meaning set forth in **<u>Section 1.03(a)</u>** above.

"**<u>Secured Parties</u>**" means the Administrative Agent, each Lender, the Indemnified Parties and the Affected Parties, as their respective interests appear under this Agreement.

"**<u>Securitization Transaction</u>**" means a securitization transaction, sponsored by the Sponsor or an Affiliate of the Sponsor, of one or more classes of asset-backed securities, which is secured by Consumer Loans (including formerly Pledged Consumer Loans) serviced or master serviced by the Servicer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"**<u>Seller Deposit Account</u>**" means the Seller's bank account at Wells Fargo Bank, National Associate, ABA No. 121000248, Account No. 4121279236, Beneficiary: Prosper Marketplace, Inc., or such other account as may be designated by the Seller from time to time by notice to the Borrower and the Administrative Agent in writing pursuant to the Purchase and Sale Agreement, for receipt of purchase price payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

"**<u>Servicer Event of Default</u>**" has the meaning set forth in the Servicing Agreement.

"**<u>Servicing Agreement</u>**" means the Amended and Restated Loan Servicing Agreement, dated as of August 14, 2025, among the Servicer, the Trustee and the Program Manager.

Appendix A-24 *Definitions*

------

"**<u>Servicing Compensation</u>**" has the meaning set forth (i) in the case of the initial Servicer, in the Servicing Agreement, and (ii) in the case of the successor Servicer, in the Successor Servicing Agreement.

"**<u>Settlement Date</u>**" means the date which is the 20th day of any calendar month, beginning January 20, 2026; **<u>provided</u>** that, if such 20th day is not a Business Day, the Settlement Date will be the first Business Day immediately following such 20th day; provided, further, that after the occurrence and during the continuance of an Event of Default, "Settlement Date" shall include any other Business Day designated as such by the Administrative Agent.

"**<u>Signature Laws</u>**" has the meaning set forth in **<u>Section 12.10</u>** (*Execution in Counterparts; Severability*).

"**<u>SOFR</u>**" means a rate equal to the secured overnight financing rate as administered by the Term SOFR Administrator.

"**<u>SOFR Loan</u>**" means an Advance that bears interest at a rate based on Term SOFR, other than pursuant to clause (c) of the definition of "ABR".

"**<u>Solvent</u>**" means, with respect to any Person at any time, a condition under which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the fair value and present fair saleable value of such Person's total assets is, on the date of
determination, greater than such Person's total liabilities (including contingent and unliquidated liabilities) at such time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Person is able to pay all of its liabilities as such liabilities are expected to mature; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such Person does not have unreasonably small capital with which to engage in its current and in its anticipated
business.

For purposes of this definition:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the amount of a Person's contingent or unliquidated liabilities at any time shall be that amount which,
in light of all the facts and circumstances then existing, represents the amount which can reasonably be expected to become an actual or matured liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the "fair value" of an asset shall be the amount which may be realized within a reasonable time
either through collection or sale of such asset at its regular market value; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the "present fair saleable value" of an asset means the amount which can be obtained if such asset
is sold with reasonable promptness in an arm's-length transaction in an existing and not theoretical market.

"**<u>Sponsor</u>**" means PALCO Holdings 3 LP, a Delaware limited partnership.

Appendix A-25 *Definitions*

------

"**<u>State Concentration Amount</u>**" means, as of any date of determination, and with respect to any state, the amount determined by summing the Included Consumer Loan Balances of all Included Consumer Loans that were made to Obligors that are resident in such state.

**"<u>Subordinated Loan Agreement</u>**" means the Subordinated Loan Agreement, dated as of the date hereof, among the Borrower, as borrower and the Limited Guarantors, as lenders.

"**<u>subsidiary</u>**" means, with respect to any Person (the "**<u>parent</u>**") at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent's consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company, partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent and which is required by GAAP to be consolidated in the consolidated financial statements of the parent.

"**<u>Successor Servicing Agreement</u>**" has the meaning given to such term in the Back-Up Servicing Agreement.

"**<u>Taxes</u>**" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

"**<u>Term SOFR</u>**" means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for any calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a one month tenor on the day (such day, the "**<u>Periodic Term SOFR Determination Day</u>**") that is two U.S. Government Securities Business Days prior to the first day of such Interest Period, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for any calculation with respect to an ABR Loan on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "**<u>ABR Term SOFR Determination Day</u>**") that is two U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any ABR Term SOFR Determination Day the Term SOFR Reference

Appendix A-26 *Definitions*

------

Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three U.S. Government Securities Business Days prior to such ABR SOFR Determination Day;

provided, further, that if Term SOFR determined as provided above (including pursuant to the proviso under clause (a) or clause (b) above) shall ever be less than zero, then Term SOFR shall be deemed to be zero.

"**<u>Term SOFR Administrator</u>**" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Administrative Agent in its reasonable discretion).

"**<u>Term SOFR Reference Rate</u>**" means the forward-looking term rate based on SOFR.

"**<u>Three Month Average Default Ratio</u>**" means, with respect to any calendar month, an amount, expressed as a percentage, equal to (a) the sum of the Default Ratios for each of the three most recently ended calendar months divided by (b) three; *provided*, that if there were no Pledged Consumer Loans as of the first day of any calendar month, such month shall be excluded from each of clause (a) and clause (b).

"**<u>Three Month Average Delinquency Ratio</u>**" means, with respect to any calendar month, an amount, expressed as a percentage, equal to (a) the sum of the Delinquency Ratios for each of the three most recently ended calendar months divided by (b) three; *provided*, that if there were no Pledged Consumer Loans as of the first day of any calendar month, such month shall be excluded from each of clause (a) and clause (b).

"**<u>Three Month Average Excess Spread Ratio</u>**" means, with respect to any calendar month, an amount, expressed as a percentage, equal to (a) the sum of the Excess Spread Rate for each of the three most recently ended calendar months divided by (b) three; *provided*, that if there were no Pledged Consumer Loans as of the first day of any calendar month, such month shall be excluded from each of clause (a) and clause (b).

"**<u>Transaction</u>**" has the meaning set forth in **<u>Section 12.12</u>**.

"**<u>Transaction Documents</u>**" means, collectively, each agreement listed on the closing list attached hereto as **<u>Exhibit C</u>** (*Closing List*), including, without limitation, this Agreement, the Account Control Agreement, the Note, the Subordinated Loan Agreement, the Servicing Agreement, the Back-Up Servicing Agreement, the Verification Agent Agreement, the Purchase and Sale Agreement (and any bill of sale delivered in connection therewith), the Limited Guaranty and the other agreements to be executed and delivered in connection herewith and therewith, as each of the foregoing may be amended, restated, supplemented or otherwise modified from time to time.

Appendix A-27 *Definitions*

------

"**<u>Transition Costs</u>**" means the documented out-of-pocket expenses and fees reasonably incurred by the Back-Up Servicer in connection with a transfer of servicing under the Back-Up Servicing Agreement.

"**<u>Trust</u>**" has the meaning set forth in the Preamble.

"**<u>Trust Agreement</u>**" means the Trust Agreement, dated as of August 7, 2025, between the Trustee and the Program Manager.

"**<u>Trust Collateral</u>**" has the meaning set forth in **<u>Section 1.03(d)</u>** (*Grant of Security Interest*)

"**<u>Trust Interests</u>**" shall mean (i) any and all of the Borrower's interests, as the case may be, including any uncertificated ownership interest in the Trust and units of trust interest designated as "securities" (as defined in Section 8-102(a)(15) of the UCC), in the Trust, including all its rights to participate in the operation or management of such Trust and all its rights to properties, assets, trust interest and distributions under the Trust Agreement in respect of the Trust, (ii) all accounts receivable arising out of the Trust Agreement; (iii) all general intangibles arising out of the Trust Agreement; and (iv) to the extent not otherwise included, all proceeds of any and all of the foregoing (including within proceeds, whether or not otherwise included therein, any and all contractual rights of the Borrower under any agreement to receive all or any portion of the revenues or profits of the Trust).

"**<u>Trustee</u>**" has the meaning set forth in the Preamble.

"**<u>UCC</u>**" means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction or jurisdictions.

"**<u>UK Bribery Act</u>**" has the meaning set forth in **<u>Section 6.01(v)</u>** (*Sanctions; FCPA*).

"**<u>UK Financial Institution</u>**" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"**<u>UK Resolution Authority</u>**" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"**<u>UMB Bank</u>**" means UMB Bank, National Association.

"**<u>Unadjusted Benchmark Replacement</u>**" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"**<u>Unapplied Cash</u>**" means any collections with respect to a Pledged Consumer Loan that have been received by the Servicer but not yet applied to reduce the outstanding Principal Balance of, or outstanding interest or other charges on, such Pledged Consumer Loan.

Appendix A-28 *Definitions*

------

"**<u>Unmatured Event of Default</u>**" means any event which, with the giving of notice or lapse of time, or both, would become an Event of Default.

"**<u>Unused Fee</u>**" means, during the Revolving Period, for any Interest Period (or partial Interest Period), the amount determined by summing, for each day elapsed during such Interest Period (or partial Interest Period), the product of: (a) (i) the then applicable Program Limit minus (ii) the Loan Amount; multiplied by (b) the Unused Fee Rate, as determined based on the Utilization Rate for such day; multiplied by (c) (i) one divided by (ii) 360.

"**<u>Unused Fee Rate</u>**" means, for any day elapsed during the Revolving Period, a per annum rate equal to .

"**<u>Upfront Fee</u>**" means, (x) as of the Closing Date, a fee equal to the product of (i) multiplied by (ii) the sum of (A) the aggregate outstanding Loan Amount as of the Closing Date and (B) the Commitment Amount Buffer; and (y) as of any Borrowing Date during the Revolving Period, a fee equal to the product of (i) multiplied by (ii) of the positive difference (if any) of (i) the aggregate outstanding Loan Amount after given effect to the Advances funded on such Borrowing Date minus (ii) the highest aggregate outstanding Loan Amount as of any day prior to such Borrowing Date.

"**<u>U.S. Dollars</u>**" means dollars in lawful money of the United States of America.

"**<u>U.S. Government Securities Business Day</u>**" means any day except for (i) a Saturday, (ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**<u>U.S. Person</u>**" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"**<u>U.S. Tax Compliance Certificate</u>**" has the meaning assigned to such term in **<u>Section</u> <u>2.06(g)(ii)(B)(3)</u>**.

"**<u>Verification Agent Agreement</u>**" means the verification agent agreement, among the Servicer, the Verification Agent, the Program Manager and the Administrative Agent, dated December 12, 2025, and as it may from time to time be amended, replaced, extended, or otherwise renewed in accordance with the terms thereof.

"**<u>Verification Agent</u>**" means Systems & Services Technologies, Inc., and any successor thereto as may be chosen by Servicer and Borrower and consented to by the Administrative Agent.

"**<u>Verification Agent Fee</u>**" means the Verification Agent Fee (as defined in the Verification Agent Agreement).

"**<u>Verification Certificate</u>**" means the Verification Certificate (as defined in the Verification Agent Agreement).

Appendix A-29 *Definitions*

------

"**<u>Weighted Average Credit Score</u>**" means, as of any date of determination, the quotient of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the amount determined by summing, with respect to each Included Consumer Loan, the product of (i) the
Included Consumer Loan Balance of such Included Consumer Loan <u>multiplied by</u> (ii) the Credit Score of any related Obligor, as determined in connection with the origination of such Included Consumer Loan; divided by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Aggregate Included Consumer Loan Balance.

"**<u>Weighted Average Loan Interest Rate</u>**" means, as of any date of determination, the quotient of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the amount determined by summing, with respect to each Included Consumer Loan, the product of (i) the
Included Consumer Loan Balance of such Included Consumer Loan multiplied by (ii) the interest rate of such Included Consumer Loan; divided by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Aggregate Included Consumer Loan Balance.

"**<u>Whole Loan Sale</u>**" means a sale of all or a part of the Pledged Consumer Loans to an unaffiliated third-party purchaser in exchange for not less than fair market value.

"**<u>Write-Down and Conversion Powers</u>**" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. **<u>Other Terms</u>**. All accounting terms not specifically defined herein shall be construed in accordance with GAAP. Notwithstanding the foregoing, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made without giving effect to any change to, or modification of, GAAP which would require the capitalization of leases correctly characterized as "operating leases" as of the date of this Agreement (it being understood that financial statements shall be prepared without giving effect to this sentence). Except where the context otherwise indicates, all terms used in Article 9 of the UCC in the State of New York, and not specifically defined herein, are used herein as defined in such Article 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. **<u>Computation of Time Periods</u>**. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each means "to but excluding".

Appendix A-30 *Definitions*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. **<u>Rules of Construction</u>**. The definitions of terms in this Agreement shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall. " Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Transaction Document), (ii) any reference herein to any Person shall be construed to include such Person's successors and permitted assigns (including any debtor-in-possession on behalf of such Person), (iii) the words "herein," "hereof" and "hereunder," and words of similar import refer to this Agreement in its entirety and not to any particular provision hereof, (iv) all references to Articles, Sections, subsections, clauses, Exhibits and Schedules shall be construed to refer to Articles and, Sections, subsections and clauses of, and Exhibits and Schedules to, this Agreement, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties. For all purposes under the Transaction Documents, in connection with any division or plan of division under applicable law: (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its equity interests at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. **<u>Accounting Changes</u>**. If any change in GAAP occurs after the date of this Agreement and such change results in a material variation in the method of calculation of financial covenants or other terms of this Agreement, then the Borrower, the Administrative Agent and the Lenders agree to amend such provisions of this Agreement so as to equitably reflect such change so that the criteria for evaluating the Borrower's financial condition will be the same after such change as if such change had not occurred, and, until such amendment becomes effective, such determinations shall be made without giving effect to such change in GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. <u>Divisions</u>**. For all purposes under the Transaction Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.

Appendix A-31 *Definitions*

------

**SCHEDULE 6.01(L)** 

**Borrower Information** 

1. c/o Pacific Investment Management Company LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

2. c/o UMB Bank, National Association

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Schedule 6.01(l)-1 *Borrower Information*

------

**SCHEDULE 12.02** 

**Notice Addresses** 

***If to the Administrative Agent or the Initial Lender:***

Banco Santander S.A., New York Branch

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*With a copy to:*

Chapman and Cutler LLP

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

***If to the Borrower:***

**PALCO LVS 6 LP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*With a copy to:*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

***If to the Trust or the Trustee:***

UMB Bank, N.A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Schedule 12.02-1 *Notice Addresses*

------

**EXHIBIT A** 

**Form of Borrowing Request** 

**PALCO LVS 6 LP** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Banco Santander S.A., New York Branch

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Re: PALCO LVS 6 LP Borrowing Request

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Agreement.

Pursuant to Section 1.02 of the Agreement, the Borrower hereby requests the following Advance (the "**<u>Requested Advance</u>**"):

---

| | |
|:---|:---|
| Borrowing Date: | [_______], 20[__] |
| Total Requested Advance Amount (minimum $[_____]): | $[_______] |
| [Specify by Lender based on Percentage Interest] |  |
| [Lender] |  |
| [Lender] |  |
| Transfer to: | [Applicable Wire Instructions] |

---

The Borrower will use the proceeds of the Requested Advance to acquire the Eligible Consumer Loans listed on the Schedule of Pledged Consumer Loans that accompanies this request.

Exhibit A-1 80-41097859

------

Please transfer the Requested Advance, on the Borrowing Date written above, in accordance with the wire instructions specified above.

------

The undersigned, being an Authorized Officer of the Borrower, hereby certifies that (i) each of the statements set forth in <u>Section 5.02(a)</u> through <u>(c)</u> of the Agreement is true and correct with respect to the Borrower as of the Borrowing Date and (ii) each of the conditions set forth in <u>Section 5.02(a)</u> through <u>(j)</u> of the Agreement has been satisfied.

---

| |
|:---|
| PALCO LVS 6 LP<br> as the Borrower |
| By: PALCO LVS 6 GP LLC, as its general partner |
| By: |
| Name: |
| Title: |

---

Exhibit A-3 80-41097859

------

**EXHIBIT B** 

**Form of Note** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

December 12, 2025

PALCO LVS 6 LP, a Delaware limited partnership (the "**<u>Borrower</u>**"), promises to pay to the order of Banco Santander S.A., New York Branch, as Administrative Agent for the account of the Lenders (the "**<u>Administrative Agent</u>**"), on the Final Maturity Date set forth in the Credit Agreement (as hereinafter defined), the lesser of the principal sum of DOLLARS () or the aggregate unpaid principal amount of all Advances made by the Lenders, pursuant to the Credit Agreement, in immediately available funds to such account as may be designated by the Administrative Agent, on behalf of the Lenders, from time to time by notice to the Borrower in writing pursuant to the Credit Agreement (with a copy to the Servicer), together with all interest and fees due and owed, in the amounts and on the dates set forth in the Credit Agreement. The Borrower unconditionally agrees that it shall pay the principal of and accrued and unpaid interest and fees on this Note in the amounts and at the times required under the terms of the Credit Agreement.

The Administrative Agent shall, and is hereby authorized to, record in accordance with its usual practice, the date and amount of each Advance and the date and amount of each principal payment hereunder, and any such recordation shall constitute prima facie evidence of the accuracy of the amount so recorded; **<u>provided</u>** that the failure of the Administrative Agent to make such recordation (or any error in such recordation) shall not affect the obligations of the Borrower hereunder or under the Credit Agreement.

This Note is issued pursuant to, and is entitled to the benefits of, the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"), to which reference is hereby made for a statement of the terms and conditions governing this Note, including the terms and conditions under which this Note may be prepaid or its maturity date accelerated. This Note is secured by the Collateral as more particularly described in the Credit Agreement. Capitalized terms used herein and not otherwise defined herein are used with the meanings attributed to them in the Credit Agreement.

This Note will be supplemented by additional appropriate insertions to be made on each Borrowing Date (as supplemented, extended, amended or replaced from time to time, the "**<u>Note</u>**") pursuant to the Credit Agreement.

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "**<u>SECURITIES ACT</u>**"), AND HAS NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR REGULATORY AUTHORITY OF ANY STATE. THIS NOTE HAS BEEN

Exhibit B-1 80-41097859

------

OFFERED AND SOLD PRIVATELY. THE REGISTERED OWNER HEREOF ACKNOWLEDGES THAT THESE SECURITIES ARE "RESTRICTED SECURITIES" THAT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT AND AGREES FOR THE BENEFIT OF THE BORROWER AND ITS AFFILIATES THAT THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (A) TO A PERSON (I) WHOM THE TRANSFEROR REASONABLY BELIEVES IS AN INSTITUTIONAL ACCREDITED INVESTOR TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR TRANSFER IS BEING MADE IN RELIANCE ON REGULATION D, AND IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR OTHER JURISDICTION OR (II) IN A TRANSACTION THAT IS REGISTERED UNDER THE SECURITIES ACT OR THAT IS OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND (B) TO A PERSON THAT IS A "QUALIFIED PURCHASER" WITHIN THE MEANING OF SECTION 2a(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED. THE HOLDER HEREOF, BY ACQUIRING THIS NOTE, REPRESENTS AND AGREES FOR THE BENEFIT OF THE BORROWER, THE SELLER, THE SERVICER, AND THE ADMINISTRATIVE AGENT THAT: IT IS (I) AN INSTITUTIONAL ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1)-(3) AND (7) OF REGULATION D UNDER THE SECURITIES ACT) OR AN ENTITY IN WHICH ALL THE EQUITY OWNERS COME WITHIN SUCH PARAGRAPHS AND (II) A "QUALIFIED PURCHASER" WITHIN THE MEANING OF SECTION 2a(51) OF THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED; ITS ACQUISITION OF THIS NOTE IS OTHERWISE EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND IT IS HOLDING THIS NOTE FOR INVESTMENT PURPOSES AND NOT FOR DISTRIBUTION.

---

| |
|:---|
| PALCO LVS 6 LP |
| By: PALCO LVS 6 GP LLC, its general partner |
| By: |
| Name: |
| Title: |

---

Exhibit B-2 80-41097859

------

**EXHIBIT C** 

**Closing List** 

1. The Limited Guaranty dated as of December 12, 2025 made by the Limited Guarantors in favor of the
Administrative Agent.

2. The Blocked Account Control Agreement dated as of December 12, 2025, among the Borrower, the
Administrative Agent and U.S. Bank National Association.

3. The Account Agreement dated as of December 12, 2025 between the Borrower and the Account Bank.

4. The Backup Servicing Agreement dated as of December 12, 2025 among the Borrower, the Administrative Agent,
the Trustee and Systems & Services Technologies, Inc., as backup servicer.

5. The Verification Agent Agreement dated as of December 12, 2025 among the Administrative Agent, Prosper
Funding LLC, as servicer, the Borrower and SST, as verification agent;

6. The Multi-Party Agreement dated as of December 12, 2025 among the Borrower, the Trustee, the
Administrative Agent, the Servicer and SST.

7. The Loan Servicing Agreement dated as of August 14, 2025 among the Servicer, the Trustee, and the
Borrower.

8. The Trust Agreement of the Trust dated as of August 7, 2025 between the Trustee and the Program Manager.

9. The Loan Purchase Agreement dated as of August 14, 2025, between Prosper Funding LLC, as seller and the
Trustee.

Exhibit C-1 80-41097859

------

**EXHIBIT D** 

**Reserved** 

Exhibit D-1 80-41097859

------

**EXHIBIT E** 

**Information to be Included in the Schedule of Pledged Consumer Loans** 

*(To be confirmed by Santander and PIMCO)* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• origination date

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loan amount

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• principal balance

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maturity date

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• borrower rate

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• days past due

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• note status

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• FICO Score

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prosper Rating

Exhibit E-1 80-41097859

------

**EXHIBIT F** 

**Form of Assignment and Acceptance** 

ASSIGNMENT AND ACCEPTANCE, dated as of [_______], 20[ ], between [_______] (the "**Assignor**") and [_______] (the "**Assignee**").

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1,** a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"). Terms defined in the Credit Agreement and not otherwise defined herein are used herein with the meanings ascribed thereto in the Credit Agreement.

WHEREAS, the Assignor is a Lender under the Credit Agreement and desires to sell and assign to the Assignee, and the Assignee desires to purchase and assume from the Assignor, on the terms and conditions set forth below, a [__] percent (__)% interest in such Lender's aggregate portion of the Program Limit (including any Advances) and rights and obligations under the Credit Agreement and the other Transaction Documents (the "**<u>Assigned Percentage</u>**").

NOW, THEREFORE, the Assignor and the Assignee hereby agree as follows:

In consideration of the Assignee's payment to the Assignor of $[_______], the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, as of the "Effective Date" (as defined below), the Assigned Percentage, together (a) with all of the Assignor's rights and obligations under the Credit Agreement and the other Transaction Documents with respect to such Assigned Percentage, (b) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in its capacity as the Lender) against any Person, whether known or unknown arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (a) above (the rights and obligations sold and assigned pursuant to clauses (a) and (b) above being referred to herein collectively as, the "**<u>Assigned Interest</u>**"). Such sale and assignment is without recourse to the Assignor and, except as expressly provided in this Assignment and Acceptance, without representation or warranty by the Assignor.

The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or

Exhibit F-1 80-41097859

------

representations made in or in connection with the Credit Agreement or any other Transaction Document (other than those made in clause (a) above), (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Transaction Documents or any collateral thereunder, (iii) the financial condition of the Borrower, any of the Borrower's Affiliates or any other Person obligated in respect of any Transaction Document or (iv) the performance or observance by the Borrower or any of its Affiliates or any other Person of any of their respective obligations under any Transaction Document.

The Assignee (a) represents and warrants that (i) it is a Qualified Purchaser, (ii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (iii) from and after the Effective Date (as defined below), it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 7.02 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase the Assigned Interest on the basis of which it has made such analysis and decision independently and without reliance on the Assignor, and (v) if it is an entity that is not created or organized under the laws of the United States or a political subdivision thereof, attached to the Assignment and Acceptance is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly contemplated and executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on the Assignor, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Transaction Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Transaction Documents are required to be performed by it as a Lender.

This Assignment and Acceptance shall become effective as of [_______], 20[__] (the "**<u>Effective Date</u>**"), following the execution of this Assignment and Acceptance.

From and after the Effective Date, the Administrative Agent or the Assignee, as applicable, shall make all payments under the Credit Agreement in respect of the Assigned Interest (including, without limitation, all payments of principal, interest and fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate adjustments in payments under the Credit Agreement for periods prior to the Effective Date directly between themselves.

This Assignment and Acceptance shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Assignment and Acceptance may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Acceptance by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance.

**THIS ASSIGNMENT AND ACCEPTANCE SHALL BE INTERPRETED, AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES.)** 

Exhibit F-2 80-41097859

------

IN WITNESS WHEREOF, intending to be legally bound, each of the undersigned has caused this Assignment and Acceptance to be executed on its behalf by its officer thereunto duly authorized, as of <_______>.

---

| |
|:---|
| <br> as Assignor |
| By: |
| Name: |
| Title: |
| <br> as Assignee |
| By: |
| Name: |
| Title: |
| Notice Address for Assignee: |

---

Exhibit F-3 80-41097859

------

**EXHIBIT G** 

**Eligible Consumer Loan Forms** 

*[ATTACHED]* 

Exhibit G-1 80-41097859

------

**EXHIBIT H** 

**Form of Monthly Report** 

*(Separately provided)* 

Exhibit H-1 80-41097859

------

**EXHIBIT I** 

**Program Requirements** 

*See Exhibit C to Purchase and Sale Agreement*

Exhibit I-1 80-41097859

------

**EXHIBIT J** 

**Form of Compliance Certificate** 

[Date]

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"). Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Agreement.

Pursuant to the applicable provision of **<u>Section 7.02</u>** (*Reporting Requirements*) of the Agreement, the undersigned, being an Authorized Officer] of PALCO LVS 6 LP, a Delaware limited partnership, hereby certifies that:

<u>Section 7.02(b)</u> (*Quarterly Financial Statements*) of the Agreement on or about the date hereof are true and complete copies of such financial statements and such information fairly presents in all material respects the financial condition of the Borrower as of the date delivered.><sup>1</sup>

<u>Section 7.02(c)</u> (*Annual Financial Statements*) of the Agreement on or about the date hereof are true and complete copies of such financial statements, auditor's report and management letters and such information fairly presents in all material respects the financial condition of the Borrower as of the date delivered.><sup>2</sup>

<sup>1</sup> Include for quarterly submissions only.

<sup>2</sup> Include for annual submissions only.

Exhibit J-1 80-41097859

------

---

| | |
|:---|:---|
| PALCO LVS 6 LP | PALCO LVS 6 LP |
| By: | PALCO LVS 6 GP LLC, its general partner |
| By: |  |
| Name: |  |
| Title: |  |

---

Exhibit J-2 80-41097859

------

**EXHIBIT K-1** 

**Reconciliation Email to Distribute Funds Pursuant to Section 3.03(a) or 3.03(b)** 

To: Banco Santander S.A., New York Branch

Cc: U.S. Bank, National Association

Subject: <u>PALCO LVS 6 LP Collection Account (#295141000)</u>

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**"). Capitalized terms used in this email and not otherwise defined shall have the meanings assigned to them in the Agreement.

In accordance with [**<u>Section 3.03(a)</u>** (*Distributions Prior to an Amortization Event, an Event of Default, or the Final Payout Date*)][**<u>Section 3.03(b)</u>** (*Distributions Following an Amortization Event, an Event of Default, or the Final Payout Date*] of the Agreement, the Program Manager has determined that Available Funds on deposit in the Collection Account should be disbursed as follows on [the next Settlement Date]:

Exhibit K-1 80-41097859

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**EXHIBIT L-1** 

**Form of Tax Compliance Certificate (Non-Partnership Lenders)** 

*(For* ***Foreign Lenders****3 That Are Not Partnerships For U.S. Federal Income Tax Purposes)* 

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender")</u>.**

Pursuant to the provisions of Section 2.06 (*Taxes*) of the Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Advance(s) (as well as the Note, if any, evidencing such Advance(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Credit Party within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to any Credit Party as described in Section 881(c)(3)(C) of the Code.

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

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

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<sup>3</sup> U.S. Lenders do not have to complete.

Exhibit L-1-1 80-41097859

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**EXHIBIT L-2** 

**Form of Tax Compliance Certificate (Non-Partnership Participants)** 

*(For* ***Foreign Participants****<sup>4</sup> That Are Not Partnerships For U.S. Federal Income Tax Purposes)* 

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK,NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**Administrative Agent**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**").

Pursuant to the provisions of <u>Section 2.06</u> (*Taxes*) of the Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of any Credit Party within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to any Credit Party as described in Section 881(c)(3)(C) of the Code.

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

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

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<sup>4</sup> U.S. Lenders do not have to complete.

Exhibit L-2-1 80-41097859

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**EXHIBIT L-3** 

**Form of Tax Compliance Certificate (Partnership Participants)** 

*(For* ***Foreign Participants****<sup>5</sup> That Are Partnerships For U.S. Federal Income Tax Purposes)* 

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**").

Pursuant to the provisions of Section 2.06 (*Taxes*) of the Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of any Credit Party within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to any Credit Party as described in Section 881(c)(3)(C) of the Code.

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

<sup>5</sup> U.S. Lenders do not have to complete.

Exhibit L-3-1 80-41097859

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

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Exhibit L-3-2 80-41097859

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**EXHIBIT L-4** 

**Form of Tax Compliance Certificate (Partnership Lenders)** 

*(For Foreign Lenders<sup>6</sup> That Are Partnerships For U.S. Federal Income Tax Purposes)* 

Reference is made to the Credit and Security Agreement, dated as of December 12, 2025 (as amended, restated, supplemented or otherwise modified from time to time, the "**<u>Agreement</u>**"), among **PALCO LVS 6 LP**, a Delaware limited partnership, in its capacity as the borrower (the "**<u>Borrower</u>**") and the program manager (the "**<u>Program Manager</u>**"), **UMB BANK, NATIONAL ASSOCIATION**, not in its individual capacity, but solely as trustee for **PAL CL TRUST 1**, a New York common law trust, **BANCO SANTANDER S.A., NEW YORK BRANCH**, as the administrative agent (in such capacity, the "**<u>Administrative Agent</u>**"), **BANCO SANTANDER S.A., NEW YORK BRANCH**, as a lender (the "**<u>Initial Lender</u>**").

Pursuant to the provisions of Section 2.06 (*Taxes*) of the Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Advance(s) (as well as the Note, if any, evidencing such Advance(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Advance(s) (as well as the Note, if any, evidencing such Advance(s)), (iii) with respect to the extension of credit pursuant to this Agreement or any other Transaction Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of any Credit Party within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to any Credit Party as described in Section 881(c)(3)(C) of the Code.

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

<sup>6</sup> U.S. Lenders do not have to complete.

Exhibit L-4-1 80-41097859

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

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Exhibit L-4-2 80-41097859

## Exhibit 10.7

**Exhibit 10.7** 

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| The Bond Market Association | International Securities Market Association |
| New York. Washington. London |  |
| www. bondmarkets.com |  |

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**2000 VERSION** 

**TBMA/ISMA** 

**GLOBAL MASTER REPURCHASE AGREEMENT** 

Dated as of 23 September 2009

**Between:** 

BARCLAYS BANK PLC ("PARTY A")

and

**PACIFIC INVESTMENT MANAGEMENT COMPANY LLC ("PIMCO")** IN ITS OWN CAPACITY ANO AS INVESTMENT ADVISER (THE "INVESTMENT ADVISER") FOR EACH OF THE ACCOUNTS LISTED IN ANNEX HJ (IDENTIFICATION OF PR[NCIPALS FOR THE PIMCO ACCOUNTS (each, a **"PARTYB"**)

(a) From time to time the parties hereto may enter into transactions in which one party, acting through a
Designated Office, ("Seller") agrees to sell to the other, acting through a Designated Office, ("Buyer") securities and financial instruments ("Securities") (subject to paragraph 1(c), other than equities and Net
Paying Securities) against the payment of the purchase price by Buyer to Seller, with a simultaneous agreement by Buyer to sell to Seller Securities equivalent to such Securities at a date certain or on demand against the payment of the repurchase
price by Seller to Buyer.

(b) Each such transaction (which may be a repurchase transaction ("Repurchase Transaction") or a buy
and sell back transaction ("Buy/Sell Back Transaction")) shall be referred to herein as a "Transaction" and shall be governed by this Agreement, including any supplemental terms or conditions contained in Annex I hereto,
unless otherwise agreed in writing.

October 2000

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(c) If this Agreement may be applied to-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buy/Sell Back Transactions, this shall be specified in Annex I hereto, and the provisions of the Buy/Sell Back
Annex shall apply to such Buy/Sell Back Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Net Paying Securities, this shall be specified in Annex I hereto and the provisions of Annex I, paragraph 1(b)
shall apply to Transactions involving Net Paying Securities.

(d) If Transactions are to be effected under this Agreement by either party as an agent, this shall be specified in
Annex I hereto, and the provisions of the Agency Annex shall apply to such Agency Transactions.

**2.** **Definitions** 

(a) "Act of Insolvency" shall occur with respect to any party hereto upon -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) its making a general assignment for the benefit of, entering into a reorganisation, arrangement, or composition
with creditors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) its admitting in writing that it is unable to pay its debts as they become due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) its seeking, consenting to or acquiescing in the appointment of any trustee, administrator, receiver or
liquidator or analogous officer of it or any material part of its property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the presentation or filing of a petition in respect of it (other than by the counterparty to this Agreement in
respect of any obligation under this Agreement) in any court or before any agency alleging or for the bankruptcy, winding-up or insolvency of such party (or any analogous proceeding) or seeking any
reorganisation, arrangement, composition, re-adjustment, administration, liquidation, dissolution or similar relief under any present or future statute, law or regulation, such petition (except in the case of
a petition for winding-up or any analogous proceeding, in respect of which no such 30 day period shall apply) not having been stayed or dismissed within 30 days of its filing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the appointment of a receiver, administrator, liquidator or trustee or analogous officer of such party or over
all or any material part of such party's property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the convening of any meeting of its creditors for the purposes of considering a voluntary arrangement as
referred to in section 3 of the Insolvency Act 1986 (or any analogous proceeding);

(b) "Agency Transaction", the meaning specified in paragraph 1 of the Agency Annex;

(c) "Appropriate Market", the meaning specified in paragraph 10;

October 2000 - 2 -

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(d) "Base Currency", the currency indicated in Annex I hereto;

(e) "Business Day"-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in relation to the settlement of any Transaction which is to be settled through Clearstream or Euroclear, a day
on which Clearstream or, as the case may be, Euroclear is open to settle business in the currency in which the Purchase Price and the Repurchase Price are denominated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in relation to the settlement of any Transaction which is to be settled through a settlement system other than
Clearstream or Euroclear, a day on which that settlement system is open to settle such Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in relation to any delivery of Securities not falling within (i) or (ii) above, a day on which banks are
open for business in the place where delivery of the relevant Securities is to be effected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) in relation to any obligation to make a payment not falling within (i) or (ii) above, a day other than a
Saturday or a Sunday on which banks are open for business in the principal financial centre of the country of which the currency in which the payment is denominated is the official currency and, if different, in the place where any account
designated by the parties for the making or receipt of the payment is situated (or, in the case of a payment in euro, a day on which TARGET operates);

(f) "Cash Margin", a cash sum paid to Buyer or Seller in accordance with paragraph 4;

(g) "Clearstream", Clearstream Banking, société anonyme, (previously Cedelbank) or any
successor thereto;

(h) "Confirmation", the meaning specified in paragraph 3(b);

(i) "Contractual Currency", the meaning specified in paragraph 7(a);

(j) "Defaulting Party", the meaning specified in paragraph 10;

(k) "Default Market Value", the meaning specified in paragraph 10;

(I) "Default Notice", a written notice served by the non-Defaulting Party on the Defaulting Party under paragraph 10 stating that an event shall be treated as an Event of Default for the purposes of this Agreement;

(m) "Default Valuation Notice", the meaning specified in paragraph 10;

(n) "Default Valuation Time", the meaning specified in paragraph 10;

(o) "Deliverable Securities", the meaning specified in paragraph 10;

(p) "Designated Office", with respect to a party, a branch or office of that party which is specified
as such in Annex I hereto or such other branch or office as may be agreed to by the parties;

October 2000 - 3 -

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(q) "Distributions", the meaning specified in sub-paragraph (w) below;

(r) "Equivalent Margin Securities", Securities equivalent to Securities previously transferred as
Margin Securities;

(s) "Equivalent Securities", with respect to a Transaction, Securities equivalent to Purchased
Securities under that Transaction. If and to the extent that such Purchased Securities have been redeemed, the expression shall mean a sum of money equivalent to the proceeds of the redemption;

(t) Securities are "equivalent to" other Securities for the purposes of this Agreement if they are:
(i) of the same issuer; (ii) part of the same issue; and (iii) of an identical type, nominal value, description and (except where otherwise stated) amount as those other Securities, provided that -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Securities will be equivalent to other Securities notwithstanding that those Securities have been redenominated
into euro or that the nominal value of those Securities has changed in connection with such redenomination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) where Securities have been converted, subdivided or consolidated or have become the subject of a takeover or
the holders of Securities have become entitled to receive or acquire other Securities or other property or the Securities have become subject to any similar event, the expression "equivalent to" shall mean Securities equivalent to (as
defined in the provisions of this definition preceding the proviso) the original Securities together with or replaced by a sum of money or Securities or other property equivalent to (as so defined) that receivable by holders of such original
Securities resulting from such event;

(u) "Euroclear", Morgan Guaranty Trust Company of New York, Brussels office, as operator of the
Euroclear System or any successor thereto;

(v) "Event of Default", the meaning specified in paragraph 10;

(w) "Income", with respect to any Security at any time, all interest, dividends or other distributions
thereon, but excluding distributions which are a payment or repayment of principal in respect of the relevant securities ("Distributions");

(x) "Income Payment Date", with respect to any Securities, the date on which Income is paid in respect
of such Securities or, in the case of registered Securities, the date by reference to which particular registered holders are identified as being entitled to payment of Income;

October 2000 - 4 -

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(y) "LIBOR", in relation to any sum in any currency, the one month London Inter Bank Offered Rate in
respect of that currency as quoted on page 3750 on the Bridge Telerate Service (or such other page as may replace page 3750 on that service) as of 11:00 a.m., London time, on the date on which it is to be determined;

(z) "Margin Ratio", with respect to a Transaction, the Market Value of the Purchased Securities at the
time when the Transaction was entered into divided by the Purchase Price (and so that, where a Transaction relates to Securities of different descriptions and the Purchase Price is apportioned by the parties among Purchased Securities of each such
description, a separate Margin Ratio shall apply in respect of Securities of each such description), or such other proportion as the parties may agree with respect to that Transaction;

(aa) "Margin Securities", in relation to a Margin Transfer, Securities reasonably acceptable to the
party calling for such Margin Transfer;

(bb) "Margin Transfer'', any, or any combination of, the payment or repayment of Cash Margin and
the transfer of Margin Securities or Equivalent Margin Securities;

(cc) "Market Value", with respect to any Securities as of any time on any date, the price for such
Securities at such time on such date obtained from a generally recognised source agreed to by the parties (and where different prices are obtained for different delivery dates, the price so obtainable for the earliest available such delivery date)
(provided that the price of Securities that are suspended shall (for the purposes of paragraph 4) be nil unless the parties otherwise agree and (for all other purposes) shall be the price of those Securities as of close of business on the dealing
day in the relevant market last preceding the date of suspension) plus the aggregate amount of Income which, as of such date, has accrued but not yet been paid in respect of the Securities to the extent not included in such price as of such date,
and for these purposes any sum in a currency other than the Contractual Currency for the Transaction in question shall be converted into such Contractual Currency at the Spot Rate prevailing at the relevant time;

(dd) "Net Exposure", the meaning specified in paragraph 4(c);

(ee) the "Net Margin" provided to a party at any time, the excess (if any) at that time of (i) the
sum of the amount of Cash Margin paid to that party (including accrued interest on such Cash Margin which has not been paid to the other party) and the Market Value of Margin Securities transferred to that party under paragraph 4(a) (excluding any
Cash Margin which has been repaid to the other party and any Margin Securities in respect of which Equivalent Margin Securities have been transferred to the other party) over (ii) the sum of the amount of Cash Margin paid to the other party
(including accrued interest on such Cash Margin which has not been paid by the other party) and the Market Value of Margin Securities transferred to the other party under paragraph 4(a) (excluding any Cash Margin which has been repaid by the other
party and any Margin Securities in respect of which Equivalent Margin Securities have been transferred by the other party) and for this purpose any amounts not denominated in the Base Currency shall be converted into the Base Currency at the Spot
Rate prevailing at the relevant time;

October 2000 - 5 -

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(ff) "Net Paying Securities", Securities which are of a kind such that, were they to be the subject of a
Transaction to which paragraph 5 applies, any payment made by Buyer under paragraph 5 would be one in respect of which either Buyer would or might be required to make a withholding or deduction for or on account of taxes or duties or Seller might be
required to make or account for a payment for or on account of taxes or duties (in each case other than tax on overall net income) by reference to such payment;

(gg) "Net Value", the meaning specified in paragraph 10;

(hh) "New Purchased Securities", the meaning specified in paragraph 8(a);

(ii) "Price Differential", with respect to any Transaction as of any date, the aggregate amount obtained
by daily application of the Pricing Rate for such Transaction to the Purchase Price for such Transaction (on a 360 day basis or 365 day basis in accordance with the applicable ISMA convention, unless otherwise agreed between the parties for the
Transaction), for the actual number of days during the period commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding) the date of calculation or, if earlier, the Repurchase Date;

(jj) "Pricing Rate", with respect to any Transaction, the per annum percentage rate for calculation of
the Price Differential agreed to by Buyer and Seller in relation to that Transaction;

(kk) "Purchase Date", with respect to any Transaction, the date on which Purchased Securities are to be
sold by Seller to Buyer in relation to that Transaction;

(ll) "Purchase Price", on the Purchase Date, the price at which Purchased Securities are sold or are to
be sold by Seller to Buyer;

(mm) "Purchased Securities", with respect to any Transaction, the Securities sold or to be sold by
Seller to Buyer under that Transaction, and any New Purchased Securities transferred by Seller to Buyer under paragraph 8 in respect of that Transaction;

(nn) "Receivable Securities", the meaning specified in paragraph 10;

(oo) "Repurchase Date", with respect to any Transaction, the date on which Buyer is to sell Equivalent
Securities to Seller in relation to that Transaction;

(pp) "Repurchase Price", with respect to any Transaction and as of any date, the sum of the Purchase
Price and the Price Differential as of such date;

(qq) "Special Default Notice", the meaning specified in paragraph 14;

October 2000 - 6 -

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(rr) "Spot Rate", where an amount in one currency is to be converted into a second currency on any date,
unless the parties otherwise agree, the spot rate of exchange quoted by Barclays Bank PLC in the London inter-bank market for the sale by it of such second currency against a purchase by it of such first currency;

(ss) "TARGET", the Trans-European Automated Real-time Gross Settlement Express Transfer System;

(tt) "Term", with respect to any Transaction, the interval of time commencing with the Purchase Date and
ending with the Repurchase Date;

(uu) "Termination", with respect to any Transaction, refers to the requirement with respect to such
Transaction for Buyer to sell Equivalent Securities against payment by Seller of the Repurchase Price in accordance with paragraph 3(f), and reference to a Transaction having a "fixed term" or being "terminable upon demand"
shall be construed accordingly;

(vv) "Transaction Costs", the meaning specified in paragraph 10;

(ww) "Transaction Exposure", with respect to any Transaction at any time during the period from the
Purchase Date to the Repurchase Date (or, if later, the date on which Equivalent Securities are delivered to Seller or the Transaction is terminated under paragraph 10(g) or 10(h)), the difference between (i) the Repurchase Price at such time
multiplied by the applicable Margin Ratio (or, where the Transaction relates to Securities of more than one description to which different Margin Ratios apply, the amount produced by multiplying the Repurchase Price attributable to Equivalent
Securities of each such description by the applicable Margin Ratio and aggregating the resulting amounts, the Repurchase Price being for this purpose attributed to Equivalent Securities of each such description in the same proportions as those in
which the Purchase Price was apportioned among the Purchased Securities) and (ii) the Market Value of Equivalent Securities at such time. If (i) is greater than (ii), Buyer has a Transaction Exposure for that Transaction equal to that excess.
If (ii) is greater than (i), Seller has a Transaction Exposure for that Transaction equal to that excess; and

(xx) except in paragraphs 14(b)(i) and 18, references in this Agreement to "written" communications and
communications "in writing" include communications made through any electronic system agreed between the parties which is capable of reproducing such communication in hard copy form.

**3.** **Initiation; Confirmation; Termination** 

(a) A Transaction may be entered into orally or in writing at the initiation of either Buyer or Seller.

(b) Upon agreeing to enter into a Transaction hereunder Buyer or Seller (or both), as shall have been agreed, shall
promptly deliver to the other party written confirmation of such Transaction (a "Confirmation").

October 2000 - 7 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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The Confirmation shall describe the Purchased Securities (including CUSIP or IS IN or other identifying number or numbers, if any), identify Buyer and Seller and set forth-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Purchase Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Repurchase Date, unless the Transaction is to be terminable on demand (in which case the Confirmation shall
state that it is terminable on demand);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Pricing Rate applicable to the Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) in respect of each party the details of the bank account[s] to which payments to be made hereunder are to be
credited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) where the Buy/Sell Back Annex applies, whether the Transaction is a Repurchase Transaction or a Buy/Sell Back
Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) where the Agency Annex applies, whether the Transaction is an Agency Transaction and, if so, the identity of
the party which is acting as agent and the name, code or identifier of the Principal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) any additional terms or conditions of the Transaction;

and may be in the form of Annex II hereto or may be in any other form to which the parties ag'ree.

The Confirmation relating to a Transaction shall, together with this Agreement, constitute prima facie evidence of the terms agreed between Buyer and Seller for that Transaction, unless objection is made with respect to the Confirmation promptly after receipt thereof. In the event of any conflict between the terms of such Confirmation and this Agreement, the Confirmation shall prevail in respect of that Transaction and those terms only.

(c) On the Purchase Date for a Transaction, Seller shall transfer the Purchased Securities to Buyer or its agent
against the payment of the Purchase Price by Buyer.

(d) Termination of a Transaction will be effected, in the case of on demand Transactions, on the date specified for
Termination in such demand, and, in the case of fixed term Transactions, on the date fixed for Termination.

(e) In the case of on demand Transactions, demand for Termination shall be made by Buyer or Seller, by telephone or
otherwise, and shall provide for Termination to occur after not less than the minimum period as is customarily required for the settlement or delivery of money or Equivalent Securities of the relevant kind.

October 2000 - 8 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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(f) On the Repurchase Date, Buyer shall transfer to Seller or its agent Equivalent Securities against the payment
of the Repurchase Price by Seller (less any amount then payable and unpaid by Buyer to Seller pursuant to paragraph 5).

**4.** **Margin Maintenance** 

[Intentionally Omitted]

October 2000 - 9 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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**5.** **Income Payments** 

Unless otherwise agreed -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) where the Term of a particular Transaction extends over an Income Payment Date in respect of any Securities
subject to that Transaction, Buyer shall on the date such Income is paid by the issuer transfer to or credit to the account of Seller an amount equal to (and in the same currency as) the amount paid by the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) where Margin Securities are transferred from one party ("the first party") to the other party
("the second party") and an Income Payment Date in respect of such Securities occurs before Equivalent Margin Securities are transferred by the second party to the first party, the second party shall on the date such Income is paid by
the issuer transfer to or credit to the account of the first party an amount equal to (and in the same currency as) the amount paid by the issuer;

and for the avoidance of doubt references in this paragraph to the amount of any Income paid by the issuer of any Securities shall be to an amount paid without any withholding or deduction for or on account of taxes or duties notwithstanding that a payment of such Income made in certain circumstances may be subject to such a withholding or deduction.

October 2000 - 10 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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**6.** **Payment and Transfer** 

[Intentionally Omitted]

October 2000 - 11 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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**7.** **Contractual Currency** 

(a) All the payments made in respect of the Purchase Price or the Repurchase Price of any Transaction shall be made
in the currency of the Purchase Price (the "Contractual Currency") save as provided in paragraph 10(c)(ii). Notwithstanding the foregoing, the payee of any money may, at its option, accept tender thereof in any other currency, provided,
however, that, to the extent permitted by applicable law, the obligation of the payer to pay such money will be discharged only to the extent of the amount of the Contractual Currency that such payee may, consistent with normal banking procedures,
purchase with such other currency (after deduction of any premium and costs of exchange) for delivery within the customary delivery period for spot transactions in respect of the relevant currency.

October 2000 - 12 -

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|:---|:---|
| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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(b) If for any reason the amount in the Contractual Currency received by a party, including amounts received after
conversion of any recovery under any judgment or order expressed in a currency other than the Contractual Currency, falls short of the amount in the Contractual Currency due and payable, the party required to make the payment will, as a separate and
independent obligation, to the extent permitted by applicable law, immediately transfer such additional amount in the Contractual Currency as may be necessary to compensate for the shortfall.

(c) If for any reason the amount in the Contractual Currency received by a party exceeds the amount of the
Contractual Currency due and payable, the party receiving the transfer will refund promptly the amount of such excess.

**8.** **Substitution** 

(a) A Transaction may at any time between the Purchase Date and Repurchase Date, if Seller so requests and Buyer so
agrees, be varied by the transfer by Buyer to Seller of Securities equivalent to the Purchased Securities, or to such of the Purchased Securities as shall be agreed, in exchange for the transfer by Seller to Buyer of other Securities of such amount
and description as shall be agreed ("New Purchased Securities") (being Securities having a Market Value at the date of the variation at least equal to the Market Value of the Equivalent Securities transferred to Seller).

(b) Any variation under sub-paragraph (a) above shall be effected,
subject to paragraph 6(d), by the simultaneous transfer of the Equivalent Securities and New Purchased Securities concerned.

(c) A Transaction which is varied under sub-paragraph (a) above shall
thereafter continue in effect as though the Purchased Securities under that Transaction consisted of or included the New Purchased Securities instead of the Securities in respect of which Equivalent Securities have been transferred to Seller.

(d) Where either party has transferred Margin Securities to the other party it may at any time before Equivalent
Margin Securities are transferred to it under paragraph 4 request the other party to transfer Equivalent Margin Securities to it in exchange for the transfer to the other party of new Margin Securities having a Market Value at the time of transfer
at least equal to that of such Equivalent Margin Securities. If the other party agrees to the request, the exchange shall be effected, subject to paragraph 6(d), by the simultaneous transfer of the Equivalent Margin Securities and new Margin
Securities concerned. Where either or both of such transfers is or are effected through a settlement system in circumstances which under the rules and procedures of that settlement system give rise to a payment by or for the account of one party to
or for the account of the other party, the parties shall cause such payment or payments to be made outside that settlement system, for value the same day as the payments made through that settlement system, as shall ensure that the exchange of
Equivalent Margin Securities and new Margin Securities effected under this sub-paragraph does not give rise to any net payment of cash by either party to the other.

October 2000 - 13 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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**9.** **Representations** 

Each party represents and warrants to the other that -

(a) it is duly authorised to execute and deliver this Agreement, to enter into the Transactions contemplated
hereunder and to perform its obligations hereunder and thereunder and has taken all necessary action to authorise such execution, delivery and performance;

(b) it will engage in this Agreement and the Transactions contemplated hereunder (other than Agency Transactions)
as principal;

(c) the person signing this Agreement on its behalf is, and any person representing it in entering into a
Transaction will be, duly authorised to do so on its behalf;

(d) it has obtained all authorisations of any governmental or regulatory body required in connection with this
Agreement and the Transactions contemplated hereunder and such authorisations are in full force and effect;

(e) the execution, delivery and performance of this Agreement and the Transactions contemplated hereunder will not
violate any law, ordinance, charter, by-law or rule applicable to it or any agreement by which it is bound or by which any of its assets are affected;

(f) it has satisfied itself and will continue to satisfy itself as to the tax implications of the Transactions
contemplated hereunder;

(g) in connection with this Agreement and each Transaction -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) unless there is a written agreement with the other party to the contrary, it is not relying on any advice
(whether written or oral) of the other party, other than the representations expressly set out in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) it has made and will make its own decisions regarding the entering into of any Transaction based upon its own
judgment and upon advice from such professional advisers as it has deemed it necessary to consult;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) it understands the terms, conditions and risks of each Transaction and is willing to assume (financially and
otherwise) those risks; and

(h) at the time of transfer to the other party of any Securities it will have the full and unqualified right to
make such transfer and that upon such transfer of Securities the other party will receive all right, title and interest in and to those Securities free of any lien, claim, charge or encumbrance.

October 2000 - 14 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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On the date on which any Transaction is entered into pursuant hereto, and on each day on which Securities, Equivalent Securities, Margin Securities or Equivalent Margin Securities are to be transferred under any Transaction, Buyer and Seller shall each be deemed to repeat all the foregoing representations. For the avoidance of doubt and notwithstanding any arrangements which Seller or Buyer may have with any third party, each party will be liable as a principal for its obligations under this Agreement and each Transaction.

**10.** **Events of Default** 

(a) If any of the following events (each an "Event of Default") occurs in relation to either party (the
"Defaulting Party", the other party being the "non-Defaulting Party") whether acting as Seller or Buyer-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Buyer fails to pay the Purchase Price upon the applicable Purchase Date or Seller fails to pay the Repurchase
Price upon the applicable Repurchase Date, and the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the parties have specified in Annex I hereto that this sub-paragraph shall apply, Seller fails to deliver Purchased Securities on the Purchase Date or Buyer fails to deliver Equivalent Securities on the Repurchase Date, and the non-Defaulting Party serves a Default Notice on
the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Seller or Buyer fails to pay when due any sum payable under sub-paragraph (g) or (h) below, and the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Seller or Buyer fails to comply with paragraph 4 and the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Seller or Buyer fails to comply with paragraph 5 and the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) an Act of Insolvency occurs with respect to Seller or Buyer and (except in the case of an Act of Insolvency
which is the presentation of a petition for winding-up or any analogous proceeding or the appointment of a liquidator or analogous officer of the Defaulting Party in which case no such notice shall be
required) the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) any representations made by Seller or Buyer are incorrect or untrue in any material respect when made or
repeated or deemed to have been made or repeated, and the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Seller or Buyer admits to the other that it is unable to, or intends not to, perform any of its obligations
hereunder and/or in respect of any Transaction and the non-Defaulting Party serves a Default Notice on the Defaulting Party; or

October 2000 - 15 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Seller or Buyer is suspended or expelled from membership of or participation in any securities exchange or
association or other self regulating organisation, or suspended from dealing in securities by any government agency, or any of the assets of either Seller or Buyer or the assets of investors held by, or to the order of, Seller or Buyer are
transferred or ordered to be transferred to a trustee by a regulatory authority pursuant to any securities regulating legislation and the non-Defaulting Party serves a Default Notice on the Defaulting Party;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Seller or Buyer fails to perform any other of its obligations hereunder and does not remedy such failure within
30 days after notice is given by the non-Defaulting Party requiring it to do so, and the non-Defaulting Party serves a Default Notice on the Defaulting Party;

then sub-paragraphs (b) to (f) below shall apply.

(b) The Repurchase Date for each Transaction hereunder shall be deemed immediately to occur and, subject to the
following provisions, all Cash Margin (including interest accrued) shall be immediately repayable and Equivalent Margin Securities shall be immediately deliverable (and so that, where this sub-paragraph applies, performance of the respective obligations of the parties with respect to the delivery of Securities, the payment of the Repurchase Prices for any Equivalent Securities and the repayment of any Cash Margin shall be effected only in
accordance with the provisions of sub-paragraph (c) below).

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|:---|:---|
| (c) (i) | The Default Market Values of the Equivalent Securities and any Equivalent Margin Securities to be transferred, the amount of any Cash Margin (including the amount of interest accrued) to be transferred and the Repurchase Prices to be paid by each party shall be established by the non-Defaulting Party for all Transactions as at the Repurchase Date; and  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) on the basis of the sums so established, an account shall be taken (as at the Repurchase Date) of what is due
from each party to the other under this Agreement (on the basis that each party's claim against the other in respect of the transfer to it of Equivalent Securities or Equivalent Margin Securities under this Agreement equals the Default Market
Value therefor) and the sums due from one party shall be set off against the sums due from the other and only the balance of the account shall be payable (by the party having the claim valued at the lower amount pursuant to the foregoing) and such
balance shall be due and payable on the next following Business Day. For the purposes of this calculation, all sums not denominated in the Base Currency shall be converted into the Base Currency on the relevant date at the Spot Rate prevailing at
the relevant time.

(d) For the purposes of this Agreement, the "Default Market Value" of any Equivalent Securities or
Equivalent Margin Securities shall be determined in accordance with sub-paragraph (e) below, and for this purpose-

October 2000 - 16 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the "Appropriate Market" means, in relation to Securities of any description, the market which is
the most appropriate market for Securities of that description, as determined by the non-Defaulting Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the "Default Valuation Time" means, in relation to an Event of Default, the close of business in
the Appropriate Market on the fifth dealing day after the day on which that Event of Default occurs or, where that Event of Default is the occurrence of an Act of Insolvency in respect of which under paragraph 10(a) no notice is required from the non-Defaulting Party in order for such event to constitute an Event of Default, the close of business on the fifth dealing day after the day on which the non-Defaulting Party
first became aware of the occurrence of such Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) "Deliverable Securities" means Equivalent Securities or Equivalent Margin Securities to be
delivered by the Defaulting Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) "Net Value" means at any time, in relation to any Deliverable Securities or Receivable Securities,
the amount which, in the reasonable opinion of the non-Defaulting Party, represents their fair market value, having regard to such pricing sources and methods (which may include, without limitation, available
prices for Securities with similar maturities, terms and credit characteristics as the relevant Equivalent Securities or Equivalent Margin Securities) as the non-Defaulting Party considers appropriate, less,
in the case of Receivable Securities, or plus, in the case of Deliverable Securities, all Transaction Costs which would be incurred in connection with the purchase or sale of such Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "Receivable Securities" means Equivalent Securities or Equivalent Margin Securities to be delivered
to the Defaulting Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) "Transaction Costs" in relation to any transaction contemplated in paragraph 10(d) or (e) means the
reasonable costs, commission, fees and expenses (including any mark-up or mark-down) that would be incurred in connection with the purchase of Deliverable Securities or sale of Receivable Securities,
calculated on the assumption that the aggregate thereof is the least that could reasonably be expected to be paid in order to carry out the transaction;

(e) (i) If between the occurrence of the relevant Event of Default and the Default Valuation Time the non-Defaulting Party gives to the Defaulting Party a written notice (a "Default Valuation Notice") which-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) states that, since the occurrence of the relevant Event of Default, the non-Defaulting Party has sold, in the case of Receivable Securities, or purchased, in the case of Deliverable Securities, Securities which form part of the same issue and are of an identical type and
description as those Equivalent Securities or Equivalent Margin Securities, and that the non-Defaulting Party elects to treat as the Default Market Value-

October 2000 - 17 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) in the case of Receivable Securities, the net proceeds of such sale after deducting all reasonable costs, fees
and expenses incurred in connection therewith (provided that, where the Securities sold are not identical in amount to the Equivalent Securities or Equivalent Margin Securities, the non-Defaulting Party may either (x) elect to treat such net
proceeds of sale divided by the amount of Securities sold and multiplied by the amount of the Equivalent Securities or Equivalent Margin Securities as the Default Market Value or (y) elect to treat such net proceeds of sale of the Equivalent
Securities or Equivalent Margin Securities actually sold as the Default Market Value of that proportion of the Equivalent Securities or Equivalent Margin Securities, and, in the case of (y), the Default Market Value of the balance of the Equivalent
Securities or Equivalent Margin Securities shall be determined separately in accordance with the provisions of this paragraph 10(e) and accordingly may be the subject of a separate notice (or notices) under this paragraph 10(e)(i)); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) in the case of Deliverable Securities, the aggregate cost of such purchase, including all reasonable costs,
fees and expenses incurred in connection therewith (provided that, wihere the Securities purchased are not identical in amount to the Equivalent Securities or Equivalent Margin Securities, the non-Defaulting Party may either (x) elect to treat such
aggregate cost divided by the amount of Securities sold and multiplied by the amount of the Equivalent Securities or Equivalent Margin Securities as the Default Market Value or (y) elect to treat the aggregate cost of purchasing the Equivalent
Securities or Equivalent Margin Securities actually purchased as the Default Market Value of that proportion of the Equivalent Securities or Equivalent Margin Securities, and, in the case of (y), the Default Market Value of the balance of the
Equivalent Securities or Equivalent Margin Securities shall be determined separately in accordance with the provisions of this paragraph 10(e) and accordingly may be the subject of a separate notice (or notices) under this paragraph 10(e)(i));

October 2000 - 18 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) states that the non-Defaulting Party has received, in the case of Deliverable Securities, offer quotations or,
in the case of Receivable Securities, bid quotations in respect of Securities of the relevant description from two or more market makers or regular dealers in the Appropriate Market in a commercially reasonable size (as determined by the
non-Defaulting Party) and specifies-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) the price or prices quoted by each of them for, in the case of Deliverable Securities, the sale by the relevant
market marker or dealer of such Securities or, in the case of Receivable Securities, the purchase by the relevant market maker or dealer of such Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) the Transaction Costs which would be incurred in connection with such a transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) that the non-Defaulting Party elects to treat the price so quoted (or, where more than one price is so quoted,
the arithmetic mean of the prices so quoted), after deducting, in the case of Receivable Securities, or adding, in the case of Deliverable Securities, such Transaction Costs, as the Default Market Value of the relevant Equivalent Securities or
Equivalent Margin Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) states-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) that either (x) acting in good faith, the non-Defaulting Party has endeavoured but been unable to sell or
purchase Securities in accordance with sub-paragraph (i)(A) above or to obtain quotations in accordance with sub-paragraph (i)(B) above (or both) or (y) the non-Defaulting Party has determined that it would not be commercially reasonable to obtain
such quotations, or that it would not be commercially reasonable to use any quotations which it has obtained under sub-paragraph (i)(B) above; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) that the non-Defaulting Party has determined the Net Value of the relevant Equivalent Securities or Equivalent
Margin Securities (which shall be specified) and that the non-Defaulting Party elects to treat such Net Value as the Default Market Value of the relevant Equivalent Securities or Equivalent Margin Securities,

then the Default Market Value of the relevant Equivalent Securities or Equivalent Margin Securities shall be an amount equal to the Default Market Value specified in accordance with (A), (B)(cc) or, as the case may be, (C)(bb) above.

October 2000 - 19 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If by the Default Valuation Time the non-Defaulting Party has not given
a Default Valuation Notice, the Default Market Value of the relevant Equivalent Securities or Equivalent Margin Securities shall be an amount equal to their Net Value at the Default Valuation Time; provided that, if at the Default Valuation Time the non-Defaulting Party reasonably determines that, owing to circumstances affecting the market in the Equivalent Securities or Equivalent Margin Securities in question, it is not possible for the non-Defaulting Party to determine a Net Value of such Equivalent Securities or Equivalent Margin Securities which is commercially reasonable, the Default Market Value of such Equivalent Securities or Equivalent
Margin Securities shall be an amount equal to their Net Value as determined by the non-Defaulting Party as soon as reasonably practicable after the Default Valuation Time.

(f) The Defaulting Party shall be liable to the non-Defaulting Party for
the amount of all reasonable legal and other professional expenses incurred by the non-Defaulting Party in connection with or as a consequence of an Event of Default, together with interest thereon at LIBOR
or, in the case of an expense attributable to a particular Transaction, the Pricing Rate for the relevant Transaction if that Pricing Rate is greater than LIBOR.

(g) If Seller fails to deliver Purchased Securities to Buyer on the applicable Purchase Date Buyer may -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if it has paid the Purchase Price to Seller, require Seller immediately to repay the sum so paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if Buyer has a Transaction Exposure to Seller in respect of the relevant Transaction, require Seller from time
to time to pay Cash Margin at least equal to such Transaction Exposure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) at any time while such failure continues, terminate the Transaction by giving written notice to Seller. On such
termination the obligations of Seller and Buyer with respect to delivery of Purchased Securities and Equivalent Securities shall terminate and Seller shall pay to Buyer an amount equal to the excess of the Repurchase Price at the date of Termination
over the Purchase Price.

(h) If Buyer fails to deliver Equivalent Securities to Seller on the applicable Repurchase Date Seller may -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if it has paid the Repurchase Price to Buyer, require Buyer immediately to repay the sum so paid;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if Seller has a Transaction Exposure to Buyer in respect of the relevant Transaction, require Buyer from time
to time to pay Cash Margin at least equal to such Transaction Exposure;

October 2000 - 20 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) at any time while such failure continues, by written notice to Buyer declare that that Transaction (but only
that Transaction) shall be terminated immediately in accordance with sub-paragraph (c) above (disregarding for this purpose references in that sub-paragraph to
transfer of Cash Margin and delivery of Equivalent Margin Securities and as if references to the Repurchase Date were to the date on which notice was given under this sub-paragraph).

(i) The provisions of this Agreement constitute a complete statement of the remedies available to each party in
respect of any Event of Default.

0) Subject to paragraph 10(k), neither party may claim any sum by way of consequential loss or damage in the event of a failure by the other party to perform any of its obligations under this Agreement.

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|:---|:---|
| (k) (i) | Subject to sub-paragraph (ii) below, if as a result of a Transaction terminating before its agreed Repurchase Date under paragraphs 10(b), 10(g)(iii) or 10(h)(iii), the non-Defaulting Party, in the case of paragraph 10(b), Buyer, in the case of paragraph 10(g)(iii), or Seller, in the case of paragraph 10(h)(iii), (in each case the "first party") incurs any loss or expense in entering into replacement transactions, the other party shall be required to pay to the first party the amount determined by the first party in good faith to be equal to the loss or expense incurred in connection with such replacement transactions (including all fees, costs and other expenses) less the amount of any profit or gain made by that party in connection with such replacement transactions; provided that if that calculation results in a negative number, an amount equal to that number shall be payable by the first party to the other party.  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If the first party reasonably decides, instead of entering into such replacement transactions, to replace or
unwind any hedging transactions which the first party entered into in connection with the Transaction so terminating, or to enter into any replacement hedging transactions, the other party shall be required to pay to the first party the amount
determined by the first party in good faith to be equal to the loss or expense incurred in connection with entering into such replacement or unwinding (including all fees, costs and other expenses) less the amount of any profit or gain made by that
party in connection with such replacement or unwinding; provided that if that calculation results in a negative number, an amount equal to that number shall be payable by the first party to the other party.

(I) Each party shall immediately notify the other if an Event of Default, or an event which, upon the serving of a
Default Notice, would be an Event of Default, occurs in relation to it.

October 2000 - 21 -

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| ![LOGO](g112132dsp0141.jpg) | ![LOGO](g112132dsp0141a.jpg) |

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**11.** **Tax Event** 

(a) This paragraph shall apply if either party notifies the other that-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any action taken by a taxing authority or brought in a court of competent jurisdiction (regardless of whether
such action is taken or brought with respect to a party to this Agreement); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a change in the fiscal or regulatory regime (including, but not limited to, a change in law or in the general
interpretation of law but excluding any change in any rate of tax),

has or will, in the notifying party's reasonable opinion, have a material adverse effect on that party in the context of a Transaction.

(b) If so requested by the other party, the notifying party will furnish the other with an opinion of a suitably
qualified adviser that an event referred to in sub-paragraph (a)(i) or (ii) above has occurred and affects the notifying party.

(c) Where this paragraph applies, the party giving the notice referred to in sub-paragraph (a) may, subject to sub-paragraph (d) below, terminate the Transaction with effect from a date specified in the notice, not being earlier (unless so
agreed by the other party) than 30 days after the date of the notice, by nominating that date as the Repurchase Date.

(d) If the party receiving the notice referred to in sub-paragraph (a) so elects, it may override that notice by giving a counter-notice to the other party. If a counter-notice is given, the party which gives the counter-notice will be deemed to have agreed to indemnify the other party against the adverse
effect referred to in sub-paragraph (a) so far as relates to the relevant Transaction and the original Repurchase Date will continue to apply.

(e) Where a Transaction is terminated as described in this paragraph, the party which has given the notice to
terminate shall indemnify the other party against any reasonable legal and other professional expenses incurred by the other party by reason of the termination, but the other party may not claim any sum by way of consequential loss or damage in
respect of a termination in accordance with this paragraph.

(f) This paragraph is without prejudice to paragraph 6(b) (obligation to pay additional amounts if withholding or
deduction required); but an obligation to pay such additional amounts may, where appropriate, be a circumstance which causes this paragraph to apply.

**12.** **Interest** 

[Intentionally Omitted]

October 2000 - 22 -

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[Intentionally Omitted]

**13.** **Single Agreement** 

Each party acknowledges that, and has entered into this Agreement and will enter into each Transaction hereunder in consideration of and in reliance upon the fact that all Transactions hereunder constitute a single business and contractual relationship and are made in consideration of each other. Accordingly, each party agrees (i) to perform all of its obligations in respect of each Transaction hereunder, and that a default in the performance of any such obligations shall constitute a default by it in respect of all Transactions hereunder, and (ii) that payments, deliveries and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments, deliveries and other transfers in respect of any other Transactions hereunder.

**14.** **Notices and Other Communications** 

(a) Any notice or other communication to be given under this Agreement-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall be in the English language, and except where expressly otherwise provided in this Agreement, shall be in
writing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) may be given in any manner described in sub-paragraphs (b) and (c)
below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall be sent to the party to whom it is to be given at the address or number, or in accordance with the
electronic messaging details, set out in Annex I hereto.

(b) Subject to sub-paragraph (c) below, any such notice or other
communication shall be effective-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if in writing and delivered in person or by courier, at the time when it is delivered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if sent by telex, at the time when the recipient's answerback is received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if sent by facsimile transmission, at the time when the transmission is received by a responsible employee of
the recipient in legible form (it being agreed that the burden of proving receipt will be on the sender and will not be met by a transmission report generated by the sender's facsimile machine);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent (return receipt requested), at
the time when that mail is delivered or its delivery is attempted;

October 2000 - 23 -

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if sent by electronic messaging system, at the time that electronic message is received;

except that any notice or communication which is received, or delivery of which is attempted, after close of business on the date of receipt or attempted delivery or on a day which is not a day on which commercial banks are open for business in the place where that notice or other communication is to be given shall be treated as given at the opening of business on the next following day which is such a day.

(c) If-

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) there occurs in relation to either party an event which, upon the service of a Default Notice, would be an
Event of Default; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the non-Defaulting Party, having made all practicable efforts to do so,
including having attempted to use at least two of the methods specified in sub-paragraph (b)(ii), (iii) or (v), has been unable to serve a Default Notice by one of the methods specified in those sub-paragraphs (or such of those methods as are normally used by the non-Defaulting Party when communicating with the Defaulting Party),

the non-Defaulting Party may sign a written notice (a "Special Default Notice") which -

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) specifies the relevant event referred to in paragraph 10(a) which has occurred in relation to the Defaulting
Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) states that the non-Defaulting Party, having made all practicable
efforts to do so, including having attempted to use at least two of the methods specified in sub-paragraph (b)(ii), (iii) or (v), has been unable to serve a Default Notice by one of the methods specified in
those sub-paragraphs (or such of those methods as are normally used by the non-Defaulting Party when communicating with the Defaulting Party);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) specifies the date on which, and the time at which, the Special Default Notice is signed by the non-Defaulting Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) states that the event specified in accordance with sub-paragraph (aa)
above shall be treated as an Event of Default with effect from the date and time so specified.

On the signature of a Special Default Notice the relevant event shall be treated with effect from the date and time so specified as an Event of Default in relation to the Defaulting Party, and accordingly references in paragraph 10 to a Default Notice shall be treated as including a Special Default Notice. A Special Default Notice shall be given to the Defaulting Party as soon as practicable after it is signed.

October 2000 - 24 -

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(d) Either party may by notice to the other change the address, telex or facsimile number or electronic messaging
system details at which notices or other communications are to be given to it

**15.** **Entire Agreement; Severability** 

This Agreement shall supersede any existing agreements between the parties containing general terms and conditions for Transactions. Each provision and agreement herein shall be treated as separate from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement

**16.** **Non-assignability; Termination** 

(a) Subject to sub-paragraph (b) below, neither party may assign,
charge or otherwise deal with (including without limitation any dealing with any interest in or the creation of any interest in) its rights or obligations under this Agreement or under any Transaction without the prior written consent of the other
party. Subject to the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to the benefit of the parties and their respective successors and assigns.

(b) Sub-paragraph (a) above shall not preclude a party from ass1gnmg,
charging or otherwise dealing with all or any part of its interest in any sum payable to it under paragraph 10(c) or (f) above.

(c) Either party may terminate this Agreement by giving written notice to the other, except that this Agreement
shall, notwithstanding such notice, remain applicable to any Transactions then outstanding.

(d) All remedies hereunder shall survive Termination in respect of the relevant Transaction and termination of this
Agreement

(e) The participation of any additional member State of the European Union in economic and monetary union after
1 January 1999 shall not have the effect of altering any term of the Agreement or any Transaction, nor give a party the right unilaterally to alter or terminate the Agreement or any Transaction.

**17.** **Governing Law** 

This Agreement shall be governed by and construed in accordance with the laws of England. Buyer and Seller hereby irrevocably submit for all purposes of or in connection with this Agreement and each Transaction to the jurisdiction of the Courts of England.

Party A hereby appoints the person identified in Annex I hereto as its agent to receive on its behalf service of process in such courts. If such agent ceases to be its agent, Party A shall promptly appoint, and notify Party B of the identity of, a new agent in England.

October 2000 - 25 -

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Party B hereby appoints the person identified in Annex I hereto as its agent to receive on its behalf service of process in such courts. If such agent ceases to be its agent, Party B shall promptly appoint, and notify Party A of the identity of, a new agent in England.

Each party shall deliver to the other, within 30 days of the date of this Agreement in the case of the appointment of a person identified in Annex I or of the date of the appointment of the relevant agent in any other case, evidence of the acceptance by the agent appointed by it pursuant to this paragraph of such appointment.

Nothing in this paragraph shall limit the right of any party to take proceedings in the courts of any other country of competent jurisdiction.

**18.** **No Waivers, etc.** 

No express or implied waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its right to exercise any other remedy hereunder. No modification or waiver of any provision of this Agreement and no consent by any party to a departure herefrom shall be effective unless and until such modification, waiver or consent shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing, the failure to give a notice pursuant to paragraph 4(a) hereof will not constitute a waiver of any right to do so at a later date.

**19.** **Waiver of Immunity** 

Each party hereto hereby waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty or otherwise) from jurisdiction, attachment (both before and after judgment) and execution to which it might otherwise be entitled in any action or proceeding in the Courts of England or of any other country or jurisdiction, relating in any way to this Agreement or any Transaction, and agrees that it will not raise, claim or cause to be pleaded any such immunity at or in respect of any such action or proceeding.

**20.** **Recording** 

The parties agree that each may electronically record all telephone conversations between them.

**21.** **Third Party Rights** 

No person shall have any right to enforce any provision of this Agreement under the Contracts (Rights of Third Parties) Act 1999.

October 2000 - 26 -

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| BARCLAYS BANK PLC **("PARTY A")** By: | BARCLAYS BANK PLC **("PARTY A")** By: | **PACIFIC INVESTMENT MANAGEMENT COMPANY LLC ("PIMCO")** IN ITS OWN CAPACITY AND AS INVESTMENT ADVISER (THE "**INVESTMENT ADVISER**") FOR EACH OF THE ACCOUNTS LISTED IN ANNEX Ill (!DENTIFICATJON OF PRINCIPALS FOR THE PIMCO ACCOUNTS (each, a **"PARTY B")** |
|  | ![LOGO](g112132g90e15.jpg) |  |
| By:<br> Title:<br> Date: | ![LOGO](g112132g90e15.jpg) | By: ![LOGO](g112132g51s14.jpg) <br> Title:<br> Date: |
|  | ![LOGO](g112132g90e15.jpg) |  |
|  | ![LOGO](g112132g90e15.jpg) |  |
| By:<br> Title:<br> Date: | ![LOGO](g112132g90e15.jpg) | ![LOGO](g112132g10v68.jpg) |
|  | ![LOGO](g112132g90e15.jpg) | ![LOGO](g112132g10v68.jpg) |
|  | ![LOGO](g112132g90e15.jpg) | ![LOGO](g112132g10v68.jpg) |

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October 2000 - 27 -

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**ANNEX I** 

**Supplemental Terms or Conditions** 

[Intentionally Omitted]

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**<u>ANNEX II (CONFIRMATION ANNEX)</u>** 

**Form of Confirmation** 

[Intentionally Omitted]

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**ANNEX III** 

[Intentionally Omitted]

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**EXECUTION VERSION** 

PAL MARK-TO-MARKET

**Annex I.K** 

**Additional Supplemental Terms and Conditions** 

This Annex I.K, dated as of September 9, 2025 (the "<u>Annex</u>") forms a part of the TBMA/ISMA Global Master Repurchase Agreement (2000 Version) dated as of September 23, 2009 (together with each other annex, schedule or appendix thereto, as each such annex may be further amended, restated or otherwise modified from time to time, the "<u>Agreement</u>") between BARCLAYS BANK PLC ("<u>Buyer</u>") and PACIFIC INVESTMENT MANAGEMENT COMPANY LLC ("<u>PIMCO</u>" or "<u>Investment Manager</u>") in its own capacity and as investment adviser for each of the accounts listed in <u>Annex III</u> (Identification of Principals for the PIMCO Accounts) which Agreement is hereby incorporated by reference in its entirety herein as modified hereby, but shall only apply to Repurchase Transactions between Buyer and Seller (as defined herein) as contemplated by the terms hereof. The Facility shall be full recourse as to Seller. For purposes of this Annex, "Net Exposure" means any Net Exposure arising solely with respect to Repurchase Transactions between Buyer and Seller as contemplated by the terms of this Annex. Capitalized terms used but not defined in this Annex shall have the meanings ascribed to them in the Agreement.

1. <u>Inconsistency</u>. In the event of any inconsistency between the terms of the Agreement and this Annex, this
Annex shall govern.

2. <u>Definitions</u>. <u>Paragraph 2</u> of the Agreement is hereby amended to add the following definitions and,
in any case where the definition already exists in <u>Paragraph 2</u>, the definition is deleted in <u>Paragraph 2</u> in its entirety and replaced with the following:

"<u>Adjustable Rate Mortgage Loan</u>": A Mortgage Loan that provides for the adjustment of the Mortgage Interest Rate payable in respect thereto.

"<u>Affiliate</u>": With respect to any party, means another entity that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with such party. For purposes of this definition, the term "control" means possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of an entity, whether through the ability to exercise voting power, by contract or otherwise. Without limiting the generality of the foregoing, an entity shall be deemed to be controlled by another entity if such other entity possesses, directly or indirectly, the power to elect a majority of the board of directors or equivalent body of the first entity. Notwithstanding the foregoing, "Affiliate" with respect to Seller or a Guarantor as used in this Annex shall only include each Guarantor and its Subsidiaries (including, for the avoidance of doubt, the Legal Title Trust, the Grantor Trust, the REO Entity and the Holdings Trust).

"<u>Aged Modified Loan</u>": A Modified Loan for which the time between the date on which such Modified Loan was modified, as reflected in the most recent Asset Tape, or, with respect to a Modified Loan within the scope of clause (b)(2) of the definition of Modified Loan, the Payment Date on which such Modified Loan returned to being current (using the MBA Method of Delinquency), as reflected in the most recent Asset Tape, to the date of determination of the Loan Level Advance Rate of such Modified Loan is more than sixty (60) days.

"<u>Agency</u>": Freddie Mac, Fannie Mae or Ginnie Mae, as applicable.

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"<u>Agency Guide</u>": The Freddie Mac Guide, the Fannie Mae Guide, or the Ginnie Mae Guide, as applicable.

"<u>Agency Loan</u>": A Mortgage Loan, that is not a Non-Performing Loan, secured by a one-to four-family residential property eligible for pooling in a Security (not taking into account any limits on types of Mortgage Loans that can be pooled in a Security); <u>provided</u>, <u>however</u>, that any such Agency Loan that is contractually delinquent (using the MBA Method of Delinquency) for ninety (90) or more days will be deemed to be a Non-Performing Loan.

"<u>Agency Program</u>": The Freddie Mac Program, the Fannie Mae Program, or the Ginnie Mae Program, as applicable.

"<u>Applicable Agency</u>": Ginnie Mae, Fannie Mae, or Freddie Mac, as applicable.

"<u>Asset Tape</u>": A computer tape or other electronic medium generated by Seller, and delivered to Calculation Agent and applicable Custodian, which provides information for the Underlying Assets, in a format reasonably acceptable to Calculation Agent.

"<u>Assignment of Mortgage</u>": With respect to any Mortgage, an assignment of the Mortgage, notice of transfer or equivalent instrument in recordable form, sufficient under the laws of the jurisdiction wherein the related Mortgaged Property is located to reflect the assignment of the Mortgage to the Legal Title Trustee for the Legal Title Trust.

"<u>ATR Rules</u>": The "ability to repay" rules specified in the federal Truth-in-Lending Act as amended pursuant to rulemaking authority provided under the Dodd-Frank Act which require lenders make a reasonable, good-faith determination that a borrower has an ability to repay the loan as determined by the following eight (8) underwriting factors: (i) current or reasonably expected income or assets (other than the value of the property that secures the loan) that the mortgagor will rely on to repay the loan, (ii) current employment status (if the originator relies on employment income when assessing the mortgagor's ability to repay), (iii) monthly mortgage payment for the loan, (iv) monthly payment on any simultaneous loans secured by the same property, (v) monthly payments for property taxes and required insurance, and certain other costs related to the property such as homeowners association fees or ground rent, (vi) debts, alimony, and child-support obligations, (vii) monthly debt-to-income ratio or residual income, calculated using the total of all of the mortgage and nonmortgage obligations listed above, as a ratio of gross monthly income and (viii) credit history.

"<u>Bankruptcy Code</u>": Title 11 of the United States Code, 11 U.S.C. § 101 *et seq,* as amended.

"<u>Benchmark</u>": Initially, Term SOFR; *provided*, that if a Benchmark Transition Event has occurred with respect to Term SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to <u>Section 12</u> of this Annex.

"<u>Benchmark Replacement</u>": The sum of:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the alternate benchmark rate that has been selected by Calculation Agent giving due consideration to

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the
Relevant Governmental Body at such time or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any evolving or then-prevailing market convention for determining a rate of interest for Dollar-denominated
syndicated or bilateral credit facilities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Benchmark Replacement Adjustment,

provided that, if at any time, the Benchmark Replacement as so determined pursuant to clause (1) or (2) above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Annex.

"<u>Benchmark Replacement Adjustment</u>": For each applicable Pricing Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by Calculation Agent giving due consideration to the factors set forth in clauses (1)(a) and (1)(b) in the definition of Benchmark Replacement.

"<u>Benchmark Replacement Conforming Changes</u>": With respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Pricing Period," timing and frequency of determining rates and making payments of interest, timing of seller requests for repurchases, the applicability and length of lookback periods and other technical, administrative or operational matters) that the Calculation Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Calculation Agent in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Calculation Agent decides is reasonably necessary in connection with the administration of this Annex).

"<u>Benchmark Replacement Date</u>": The date on which a Benchmark Replacement becomes effective pursuant to <u>Section 12</u> of this Annex.

"<u>Benchmark Transition Event</u>": With respect to any then-current Benchmark, the occurrence of a public statement or publication of information by or on behalf of the administrator of the then-current Benchmark, the regulatory supervisor for the administrator of the Benchmark, the Board of Governors of the Federal Reserve System, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over the administrator for such Benchmark, a resolution authority with jurisdiction over the administrator for such Benchmark or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark, announcing or stating that (a) such administrator has ceased or will cease on a specified date to provide all applicable tenors of such Benchmark, permanently or indefinitely; provided that, at the time of

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such statement or publication, there is no successor administrator that will continue to provide any applicable tenor of such Benchmark, (b) all applicable tenors of such Benchmark are or will no longer be representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored or that such Benchmark is or will not be in compliance or aligned with the International Organization of Securities Commissions Principles for Financial Benchmarks, (c) Calculation Agent determines in its sole discretion that, by reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining such Benchmark, or (d) Calculation Agent determines in its sole discretion that the adoption of, or any Change in Law, or in the interpretation or application thereof shall make it unlawful for Buyer to accrue Price Differential based on such Benchmark.

"<u>Business Day</u>" or "<u>business day</u>": Any day other than (a) a Saturday or a Sunday, (b) a day on which banks in the States of New York, California, Maryland or Delaware are authorized or obligated by law or executive order to be closed, or (c) any day on which the New York Stock Exchange, the Federal Reserve Bank of New York or the Custodian is authorized or obligated by law or executive order to be closed. With respect to any calculation of SOFR or Term SOFR, a U.S. Government Securities Business Day.

"<u>Buyer</u>": Barclays Bank PLC.

"<u>Calculation Agent</u>": Barclays Bank PLC.

"<u>Capital Lease Obligations</u>": With respect to any Person, the amount of all obligations of such Person to pay rent or other amounts under a lease of property to the extent and in the amount that such obligations are required to be classified and accounted for as a capital lease on a balance sheet of such Person.

"<u>Certificate Notional Balance</u>": As defined in the Holdings Trust Agreement.

"<u>Change in Law</u>": (a) The adoption of any Requirements of Law, rule or regulation after the date of this Annex, (b) any change in any Requirements of Law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Annex or (c) compliance by Buyer (or any Affiliate thereof) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this Annex.

"<u>Closing Date</u>": September 10, 2025.

"<u>Collection Account</u>": The separate non-interest bearing trust account having the designation set forth in the Holdings Trust Agreement for the receipt of distributions with respect to the beneficial ownership interests underlying the Purchased Securities.

"<u>Confirmation</u>": A purchase confirmation, which may be in either electronic or physical format, containing the information identified in Paragraph 3(b) duly completed, delivered and agreed to by Seller and Buyer in accordance with Paragraph 3 of the Agreement in connection with a Repurchase Transaction to be governed by this Annex.

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"<u>Construction Mortgage Loan</u>": A Residential Transitional Loan that is underwritten as a ground-up construction loan and which remains in the ground-up construction phase of development, which may be determined in Buyer's sole, good faith, discretion.

"<u>Contractual Obligation</u>": With respect to any Person, any provision of any securities issued by such Person or any indenture, mortgage, deed of trust, deed to secure debt, contract, undertaking, agreement, instrument or other document to which such Person is a party or by which it or any of its property or assets are bound or are subject.

"<u>Custodial Agreement</u>": That certain Master Custodial Agreement, dated as of September 10, 2025, by and among the Custodian, the Program Manager, and the Legal Title Trustee, as amended by that certain Amendment No. 1 to Master Custodial Agreement, dated on or about the date hereof, by and among the Custodian, the Legal Title Trustee and the Program Manager and acknowledged and agreed to by Buyer, as the same may be amended, modified or supplemented from time to time.

"<u>Custodian</u>": Computershare Trust Company, N.A.

"<u>Default Rate</u>": The Pricing Rate plus .

"<u>Delinquent Loan</u>": A Mortgage Loan that is ninety (90) days or more delinquent, as determined using the MBA Method of Delinquency.

"<u>Dispute Procedure</u>": Defined in <u>Section 11</u> of this Annex.

"<u>Eligible Underlying Asset</u>": Any Underlying Asset that is of a Product Type and is not an Ineligible Underlying Asset.

"<u>Escrow Payments</u>": With respect to a Mortgage Loan, the amounts constituting ground rents, taxes, assessments, water charges, sewer rents, municipal charges, mortgage insurance premiums, fire and hazard insurance premiums, condominium charges and other payments as may be required to be escrowed by the mortgagor with the mortgagee pursuant to the terms of the Mortgage or any other document.

"<u>Excluded Obligation</u>": The (a) guarantees of obligations of any Subsidiary of a Guarantor and (b) completion guarantees and other contingent obligations of a Guarantor or any related investing vehicle under customary "carve-outs" from non-recourse provisions.

"<u>Exit Fee</u>": An amount equal to basis points multiplied by the aggregate Repurchase Price applicable to the Eligible Underlying Assets that are sold or otherwise disposed of on such date.

"<u>Expiration Date</u>": The Payment Date occurring in .

"<u>Facility</u>": The uncommitted reverse repurchase facility established pursuant to this Annex, the Agreement and the Program Documents.

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"<u>Fair Market Value</u>": As of any date of determination, the bid-side fair market value of an arms-length transaction between two consenting parties as determined by Buyer in a commercially reasonable manner, using the same methods as it uses for determinations of fair market value of similar assets (including, without limitation, whether such asset is a servicing-released or servicing-retained asset) in similar facilities.

"<u>Fannie Mae</u>": The Federal National Mortgage Association or any successor thereto.

"<u>Fannie Mae Guide</u>": The Fannie Mae MBS Selling and Servicing Guide, as such guide may hereafter from time to time be amended.

"<u>Fannie Mae Mortgage Loan</u>": A Mortgage Loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements specified for the applicable Fannie Mae Program described in the Fannie Mae Guide.

"<u>Fannie Mae Program</u>": The Fannie Mae Guaranteed Mortgage-Backed Securities Programs, as described in the Fannie Mae Guide.

"<u>Fannie Mae Security</u>": An ownership interest in a pool of Fannie Mae Mortgage Loans, evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect to timely payment of interest and ultimate payment of principal, by Fannie Mae and backed by a pool of Fannie Mae Mortgage Loans.

"<u>Federal Reserve Bank of New York's Website</u>": The website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.

"<u>FHA</u>": The Federal Housing Administration, an agency within HUD, or any successor thereto, and including the Federal Housing Commissioner and the Secretary of Housing and Urban Development where appropriate under the FHA regulations.

"<u>FHA Modified Loan</u>": A Modified Loan that is insured by the FHA.

"<u>Floor</u>":

"<u>Flow Assignment Agreement</u>": That certain Flow Assignment Agreement, dated as of September 10, 2025, by and among the Program Manager, the Grantor Trustee, as assignor, and the REO Entity, as assignee, as the same may be amended, restated modified or supplemented from time to time.

"<u>Freddie Mac</u>": The Federal Home Loan Mortgage Corporation, and its successors in interest.

"<u>Freddie Mac Guide</u>": The Freddie Mac Sellers' and Servicers' Guide, as such guide may hereafter from time to time be amended.

"<u>Freddie Mac Mortgage Loan</u>": A Mortgage Loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements specified for the applicable Freddie Mac Program described in the Freddie Mac Guide.

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"<u>Freddie Mac Program</u>": The Freddie Mac Home Mortgage Guarantor Program or the Freddie Mac FHA/VA Home Mortgage Guarantor Program, as described in the Freddie Mac Guide.

"<u>Freddie Mac Security</u>": A modified pass-through mortgage-backed participation certificate, evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York, issued and guaranteed, with respect to timely payment of interest and ultimate payment of principal, by Freddie Mac and backed by a pool of Freddie Mac Mortgage Loans.

"<u>Ginnie Mae</u>": The Government National Mortgage Association and its successors in interest, a wholly-owned corporate instrumentality of the government of the United States of America.

"<u>Ginnie Mae Guide</u>": The Ginnie Mae Mortgage-Backed Securities Guide, as such guide may hereafter from time to time be amended.

"<u>Ginnie Mae Mortgage Loan</u>": A Mortgage Loan that is in Strict Compliance on the related Purchase Date with the eligibility requirements specified for the applicable Ginnie Mae Program in the applicable Ginnie Mae Guide, and such mortgage loan has not been purchased out of a Ginnie Mae Security.

"<u>Ginnie Mae Program</u>": The Ginnie Mae Mortgage-Backed Securities Programs, as described in the Ginnie Mae Guide.

"<u>Ginnie Mae Security</u>": A modified pass-through mortgage-backed certificate guaranteed by Ginnie Mae, evidenced by a book-entry account in a depository institution having book-entry accounts at the Federal Reserve Bank of New York and backed by a pool of Ginnie Mae Mortgage Loans.

"<u>Governing Documents</u>": With respect to any Person, its articles or certificate of incorporation, registration or formation, by-laws, memorandum and articles of association, partnership agreement or exempted limited partnership, limited liability company, operating or trust agreement and/or other organizational, charter or governing documents.

"<u>Governmental Authority</u>": Any (a) nation or government, (b) state or local or other political subdivision thereof, (c) central bank or similar monetary or regulatory authority, (d) Person, agency, authority, instrumentality, court, regulatory body, central bank or other body or entity exercising executive, legislative, judicial, taxing, quasi-judicial, quasi-legislative, regulatory or administrative functions or powers of or pertaining to government, (e) court or arbitrator having jurisdiction over such Person, its Affiliates (other than with respect to Seller) or its assets or properties, (f) stock exchange on which shares of stock of such Person are listed or admitted for trading, (g) accounting board or authority that is responsible for the establishment or interpretation of national or international accounting principles, and (h) supranational body such as the European Union or the European Central Bank.

"<u>Grantor Trust</u>": PAL RL Grantor Trust 1, which was formed pursuant to the Pooling Agreement.

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"<u>Grantor Trust Certificate</u>" The PAL RL Grantor Trust 1 Trust Certificate issued pursuant to the PAL RL Grantor Trust 1 Pooling Agreement.

"<u>Grantor Trustee</u>" UMB Bank, National Association.

"<u>Guarantors</u>": PIMCO Asset-Based Lending Company LLC - Series I, a registered series of PIMCO Asset-Based Lending Company, LLC ("<u>PALCO</u>"), a Delaware limited liability company, and PIMCO Asset-Based Lending Company LLC - Series II, a registered series of PALCO.

"<u>Guaranty</u>": That certain Guaranty, dated on or about the date hereof, by the Guarantors in favor of Buyer, as the same may be amended, restated, modified or supplemented from time to time.

"<u>Guidelines</u>": Such underwriting guidelines provided by Seller to Buyer and approved by Buyer, as amended, modified or supplemented from time to time with the consent of Buyer.

"<u>High Cost Mortgage Loan</u>": A Mortgage Loan classified as (a) a "high cost" loan under the Home Ownership and Equity Protection Act of 1994, as amended, or (b) a "high cost," "threshold," "covered," "abusive," "high risk" or "predatory" loan under any other applicable state, federal or local law (or a similarly classified loan using different terminology under a law, regulation or ordinance imposing heightened regulatory scrutiny or additional legal liability for residential mortgage loans having high interest rates, points and/or fees).

"<u>Holdback Amount</u>": All future funding amounts for the related Mortgagor to improve and rehabilitate the related Mortgaged Property, to the extent required to be deposited and retained in an account held by Seller or the Legal Title Trust.

"<u>Holdback Draw</u>": With respect to each Holdback Loan, a disbursement of additional loan proceeds to the related mortgagor following the completion of the related Holdback Repairs and satisfaction of any conditions to such disbursement set forth in the related Mortgage Loan Documents.

"<u>Holdback Draw Request</u>": With respect to each Holdback Loan, a request by the related mortgagor for disbursement of a Holdback Draw in accordance with the related Mortgage Loan Documents.

"<u>Holdback Loan</u>": A Residential Transitional Loan that requires the disbursement of one or more Holdback Draws pursuant to and in accordance with the terms of the related Mortgage Loan Documents.

"<u>Holdback Repairs</u>": With respect to each Holdback Loan, the repairs, construction work and other mortgagor obligations under the related Mortgage Loan Documents that must be performed and completed by the related mortgagor as a condition to the disbursement of the related Holdback Draws.

"<u>Holder</u>": As defined in the Holdings Trust Agreement.

"<u>Holdings Trust</u>": PAL RL Holdings Trust 1, a New York common law trust.

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"<u>Holdings Trust Agreement</u>": The Trust Agreement, dated on or about the date hereof, by and among the Program Manager, the Trustee, Barclays Bank PLC, as calculation agent, and Computershare Trust Company, N.A., as certificate registrar and paying agent, as modified by that certain Holdings Trust Agreement Side Letter, dated on or about the date hereof, by and among Buyer, the Program Manager, the Trustee and Computershare Trust Company, N.A., as certificate registrar and paying agent, as amended, restated, supplemented or otherwise modified from time to time.

"<u>Holdings Trust Certificate</u>" or "<u>Holdings Trust Certificates</u>": The PAL RL Holdings Trust 1 Trust Certificates issued pursuant to the Holdings Trust Agreement.

"<u>HUD</u>": The United States Department of Housing and Urban Development and its successors.

"<u>Indebtedness</u>": With respect to any Person as of any date of determination, and only to the extent outstanding at such time: the sum of (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise, to repurchase such Property from such Person); (b) obligations to pay the deferred purchase or acquisition price of Property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course of business so long as such trade accounts payable are payable and paid within ninety (90) days of the date the respective goods are delivered or the respective services are rendered; (c) indebtedness of others secured by a Lien on the Property of such Person, whether or not the respective indebtedness so secured has been assumed by such Person; (d) obligations (contingent or otherwise) in respect of letters of credit or similar instruments issued for account of such Person; (e) Capital Lease Obligations; (f) payment obligations under repurchase agreements, single seller financing facilities, warehouse facilities and other lines of credit; (g) indebtedness of others guaranteed on a recourse or partial recourse basis by such Person; (h) all obligations incurred in connection with the acquisition or carrying of fixed assets; (i) indebtedness of general partnerships of which such Person is a general partner; and (j) any other known or contingent liabilities of such Person, less the amount of any non-recourse debt, including any securitization debt, and any intercompany debt eliminated in consolidation by the Guarantors.

"<u>Ineligible Underlying Assets</u>": Any Mortgage Loan or REO Property for which the representations and warranties set forth in Schedule II-A, Schedule II-B, Schedule II-C and/or Schedule II-E to this Annex, as applicable, or, in the case of Agency Loans, Schedule II-D are incorrect or untrue in any material respect when made or repeated or when deemed to have been made or repeated. For the avoidance of doubt, the representations and warranties set forth in Schedules II-A, II-B, II-C, II-D or II-E to this Annex shall not be deemed to be representations and warranties made pursuant to Paragraph 9 of the Agreement or subject to Paragraph 10(a)(vii) of the Agreement.

"<u>Insolvency Laws</u>": The Bankruptcy Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments and similar debtor relief laws from time to time in effect affecting the rights of creditors generally.

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"<u>Insolvency Proceeding</u>": Any case, action or proceeding before any court or other Governmental Authority relating to any Act of Insolvency in any jurisdiction.

"<u>Interest Only Loan</u>": A Mortgage Loan which only requires payments of interest for a period of time specified in the related Mortgage Note.

"<u>Investment Company Act</u>": The Investment Company Act of 1940, as amended, including all rules and regulations promulgated thereunder.

"<u>Legal Fee Cap</u>": , which shall be applicable to this Facility.

"<u>Legal Title Trust</u>": PAL RL Title Trust 1.

"<u>Legal Title Trust Agreement</u>": That certain Trust Agreement, dated as of September 10, 2025, by and between the Program Manager and the Legal Title Trustee, and acknowledged and agreed to by Computershare Trust Company, N.A., as participation agent, as modified by that certain Legal Title Trust Agreement Side Letter, dated on or about the date hereof, by Buyer and acknowledged and agreed to by the Program Manager and the Legal Title Trustee, each as amended, restated, supplemented or otherwise modified from time to time.

"<u>Legal Title Trustee</u>": UMB Bank, National Association.

"<u>Lien</u>": Any mortgage, statutory or other lien, pledge, charge, right, claim, adverse claim, attachment, levy, hypothecation, assignment, deposit arrangement, security interest, UCC financing statement or encumbrance of any kind on or otherwise relating to any Person's assets or properties in favor of any other Person or any preference, priority or other security agreement or preferential arrangement of any kind.

"<u>Lien Position</u>": The priority of the Lien of the Mortgage on the Mortgaged Property.

"<u>Loan Level Advance Rate</u>": The percentage set forth in Section 4 of this Annex; *provided*, that if, at any time, the outstanding principal balance of Delinquent Loans is greater than 50% of the aggregate outstanding principal balance of all Eligible Underlying Assets, the Loan Level Advance Rate for each Delinquent Loan constituting such excess, in order of greatest loan-to-value ratio (calculated for each Delinquent Loan as the outstanding principal balance of such Delinquent Loan divided by the most recent appraised value of the related Mortgaged Property), shall be .

"<u>Margin Notice</u>": A notice provided in writing in accordance with <u>Paragraph 4(b)</u> of the Agreement.

"<u>Market Value</u>": For any Purchased Security as of any date the value ascribed to a Purchased Security based upon the value of the Underlying Assets, determined by Calculation Agent in its reasonable discretion exercised in good faith. For any Mortgage Loan constituting an Underlying Asset, a Fair Market Value, expressed as a dollar amount, of such Mortgage Loan. The value of an Underlying Asset that is an Ineligible Underlying Asset may be deemed by Buyer to be $0. Any determination of Market Value shall be subject to the Dispute Procedure.

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"<u>Master Participation Agreement</u>": That certain Master Participation Agreement, dated as of September 10, 2025, by and among the Program Manager, the Legal Title Trustee and the Participation Agent, each Participation Supplement thereto and that certain Master Participation Agreement Side Letter, dated on or about the date hereof, by Buyer and acknowledged and agreed to by the Program Manager, the Legal Title Trustee, the Participation Agent, and each of the participants party thereto, each as amended, restated, modified or supplemented from time to time.

"<u>Master Servicer</u>": Computershare Trust Company, N.A.

"<u>Master Servicing Agreement</u>": That certain Master Servicing Agreement, dated as of September 10, 2025, by and among the Program Manager, the Legal Title Trustee, the Participation Agent and the Master Servicer, as modified by that certain Master Servicing Agreement Side Letter, dated on or about the date hereof, by Buyer and acknowledged and agreed by the Program Manager, the Legal Title Trustee, the Master Servicer and the Participation Agent, each as amended, restated, modified or supplemented from time to time.

"<u>Material Adverse Effect</u>": A material adverse effect on or material adverse change in or to (a) the business, operations or financial condition of Seller or each Guarantor and their respective Subsidiaries, taken as a whole, (b) the combined ability of Seller and the Guarantors to pay and perform the Obligations, (c) the validity, legality, binding effect or enforceability of any Program Document or security interest granted hereunder or thereunder, (d) the rights and remedies of Buyer under any Program Document, or (e) the perfection or priority of any Lien granted under any Program Document.

"<u>Maximum Aggregate Purchase Price</u>": An uncommitted amount equal to .

"<u>MBA Method of Delinquency</u>": With respect to Mortgage Loans, the methodology used by the Mortgage Bankers Association for assessing delinquency. For the avoidance of doubt, under the MBA Method of Delinquency, a Mortgage Loan is considered "30 days delinquent" if the mortgagor fails to make a monthly payment prior to the close of business on the day that immediately precedes the due date on which the next monthly payment is due. For example, a Mortgage Loan will be considered thirty (30) days delinquent if the mortgagor fails to make a monthly payment originally due on August 1 by the close of business on August 31.

"<u>Measurement Date</u>": The last day of any calendar month.

"<u>MERS</u>": Mortgage Electronic Registration Systems, Inc., a Delaware corporation, or any successor in interest thereto.

"<u>MERS Designated Mortgage Loan</u>": Any Mortgage Loan as to which the related Mortgage or Assignment of Mortgage, has been recorded in the name of MERS, as agent for the holder from time to time of the Mortgage Note.

"<u>MIN</u>": The mortgage identification number of Mortgage Loans registered with MERS on the MERS system.

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"<u>Modified Loan</u>": A Mortgage Loan that (a) is insured by FHA, guaranteed by the VA or guaranteed by the USDA, (b) (1) was purchased out of a Ginnie Mae Security or from a third-party whole loan investor solely as a result of modifications to such Mortgage Loan, or (2) was purchased out of a Ginnie Mae Security or from a third-party whole loan investor as a result of delinquent mortgage payments, but, without any loan modifications, subsequently became reperforming and (c) is a Ginnie Mae Mortgage Loan.

"<u>Monthly Payment</u>": The scheduled monthly payment of principal and interest on a Mortgage Loan as adjusted in accordance with changes in the Mortgage Interest Rate pursuant to the provisions of the Mortgage Note for an Adjustable Rate Mortgage Loan.

"<u>Mortgage</u>": A mortgage, deed of trust, or other security instrument, securing a Mortgage Note.

"<u>Mortgage File</u>": As defined in the Custodial Agreement.

"<u>Mortgage Interest Rate</u>": With respect to each Mortgage Loan, the annual rate at which interest accrues on such Mortgage Loan from time to time in accordance with the provisions of the related Mortgage Note.

"<u>Mortgage Loan</u>": Any fixed-rate or adjustable-rate one- to four-family residential mortgage loan or line of credit that is current (including modified loans), delinquent, and/or in the process of foreclosure and secured by a first lien or second lien Mortgage.

"<u>Mortgage Loan Document</u>": Each document contained in the Mortgage File.

"<u>Mortgage Note</u>": A promissory note or other evidence of indebtedness of the obligor thereunder, evidencing a Mortgage Loan, and secured by the related Mortgage.

"<u>Mortgaged Property</u>": The real property (or leasehold estate, if applicable) securing repayment of the debt evidenced by a Mortgage Note.

"<u>NAV</u>": With respect to each Guarantor, the total assets of such Guarantor and its consolidated Subsidiaries less the aggregate liabilities thereof (including all liabilities where such entity has recourse obligations) in accordance with GAAP in the country in which such Guarantor is organized. On a nonquarter end reporting period, the NAV will be determined based on each Guarantor's internal portfolio accounting systems book of record which does not reflect all required adjustments to be in accordance with GAAP.

"<u>Negative Amortization</u>": The portion of interest accrued at the Mortgage Interest Rate in any month which exceeds the Monthly Payment on the related Mortgage Loan for such month and which, pursuant to the terms of the Mortgage Note, is added to the principal balance of such Mortgage Loan.

"<u>Non-Performing Loan</u>": A Mortgage Loan (i) for which any scheduled monthly payment due thereon is more than sixty (60) days contractually delinquent (using the MBA Method of Delinquency), or (ii) that is deemed to be a Non-Performing Loan pursuant to the definition of Non-QM Loan or Agency Loan, as applicable.

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"<u>Non-QM Loan</u>": A Mortgage Loan, excluding any Agency Loan, which does not have the benefit of the safe harbor from liability under the ATR Rules or a rebuttable presumption for such liability and which satisfies the applicable Guidelines; provided, however, that any such Non-QM Loan that is contractually delinquent (using the MBA Method of Delinquency) for ninety (90) or more days will be deemed to be a Non-Performing Loan.

"<u>Obligations</u>": All obligations of Seller to pay the Repurchase Price on the Repurchase Date and all other obligations and liabilities of Seller to Buyer arising under the Program Documents, whether now existing or hereafter arising, and all interest and fees that accrue thereunder after the commencement by or against Seller of any Insolvency Proceeding naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding (in each case, whether due or accrued).

"<u>Participation Agent</u>": Computershare Trust Company, N.A.

"<u>Participation Supplement</u>": Each of (x) that certain Participation Supplement No. 1 to the Master Participation Agreement, dated as of September 10, 2025, by and between the Program Manager and the Legal Title Trustee and accepted and agreed to by the Grantor Trustee, as participant, and (y) that certain Participation Supplement No. 2 to the Master Participation Agreement, dated September 10, 2025, by and between the Program Manager and the Legal Title Trustee and accepted and agreed to by the REO Entity, as participant.

"<u>Payment Date</u>": The 28th day of each calendar month (or the next succeeding Business Day if the 28th is not a Business Day), commencing with the first such Business Day following the Closing Date, unless otherwise agreed to between Seller and Buyer.

"<u>Permitted Liens</u>": Any of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding has been commenced: (a) Liens for state, municipal, local or other local taxes not yet due and payable, (b) Liens imposed by Requirements of Law, such as materialmen's, mechanics', carriers', workmen's, repairmen's and similar Liens, arising in the ordinary course of business securing obligations that are not overdue for more than thirty (30) days, and (c) Liens granted pursuant to or by the Program Documents.

"<u>Person</u>": An individual, corporation, limited liability company, exempted company, business trust, partnership, exempted limited partnership, trust, unincorporated organization, joint stock company, sole proprietorship, joint venture, Governmental Authority or any other form of entity.

"<u>Pooling Agreement</u>": That certain Pooling Agreement, dated as of September 10, 2025, by and among the Program Manager, the Trustee and the Securities Administrator, as amended by Amendment No. 1 thereto among the Program Manager, the Trustee and the Securities Administrator, and as modified by that certain Pooling Agreement Side Letter, dated on or about the date hereof, by and among Buyer, the Program Manager, the Trustee and the Securities Administrator, as the same may be amended, modified or supplemented from time to time.

"<u>Preapproved Dealers</u>": Any entity that is not an Affiliate of Seller and that is able to provide an firm bid (which bid will be executable upon satisfaction of stipulations and/or other trading protocols that are common practice in the whole loan trading market) to purchase the Underlying Asset subject to the Dispute Procedures.

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"<u>Pricing Margin</u>": With respect to the Product Type indicated in the following table, (i) the applicable percentage set forth in the following table, or (ii) such other Pricing Margin as may be set forth in a Confirmation:

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| | | |
|:---|:---|:---|
| **Product Type** | | **Pricing Margin** |
|  Agency Loan |  |  |
|  FHA Modified Loan |  |  |
|  USDA Modified Loan |  |  |
|  VA Modified Loan |  |  |
|  Non-QM Loan |  |  |
|  Re-Performing Loan |  |  |
|  Non-Performing Loan |  |  |
|  REO Property |  |  |
|  Second Lien Loan |  |  |
|  | Residential<br>Transitional Loan |  |
|  Residential Transitional Loan | Construction Mortgage<br>Loan - contractually<br>delinquent (using the<br>Mortgage Bankers<br>Association method)<br>for less than 60 days |  |

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"<u>Pricing Period</u>": For any Purchased Security, (a) in the case of the first Payment Date, the period from the Purchase Date for such Purchased Security to but excluding such Payment Date, and (b) in the case of any subsequent Payment Date, the one-month period commencing on and including the prior Payment Date and ending on but excluding such Payment Date; provided that no Pricing Period for a Purchased Security shall end after the Repurchase Date for such Purchased Security.

"<u>Pricing Rate</u>": For any Pricing Period, an amount equal to the sum of (a) the greater of (i) the Benchmark for such Pricing Period and (ii) the Floor plus (b) the applicable Pricing Margin, which shall be subject to adjustment and/or conversion as provided in <u>Section 12</u> of this Annex; <u>provided</u> <u>that</u>, during the continuance of any Event of Default, the Pricing Rate shall be the Default Rate.

"<u>Product Type</u>": An Agency Loan, a Modified Loan, an Aged Modified Loan, a Non-QM Loan, a Re-Performing Loan, a Non-Performing Loan, a Second Lien Loan, a Residential Transitional Loan, or a REO Property, as applicable.

"<u>Program Documents</u>": Collectively, this Agreement (including, without limitation, this Annex), the Guaranty, all Confirmations, the Purchased Securities, the Grantor Trust Certificates, the REO Membership Certificate, the Holdings Trust Certificates, the Holdings Trust Agreement, the Legal Title Trust Agreement, the Custodial Agreement, the Master Servicing Agreement, the

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Servicing Agreement, the Pooling Agreement, REO Entity Limited Liability Company Agreement, the Master Participation Agreement and participation supplements thereto, the Flow Assignment Agreement, all UCC financing statements, amendments and continuation statements filed pursuant to any other Program Document, and all additional documents, certificates, agreements entered into in connection with this Annex or any other Program Document.

"<u>Program Manager</u>": PALCO LVS 4 LP.

"<u>Property</u>": Any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

"<u>Purchase Price</u>": In respect of any Purchased Security, (a) as of the Purchase Date set forth in the related Confirmation, the amount set forth in the Confirmation and (b) as of any date of determination after the Purchase Date set forth in the related Confirmation, the amount mutually agreed to by Buyer and Seller on a monthly basis; which, in either case, shall be the sum of the product of (x) the Market Value of each Eligible Underlying Asset and Holdback Amounts held by the Legal Title Trust as of such date of determination as reflected in the Asset Tape delivered by Seller and agreed to by Calculation Agent prior to such date of determination and (y) the Loan Level Advance Rate with respect to each such Eligible Underlying Asset. In no event shall the aggregate Purchase Price of all Purchased Securities exceed the Maximum Aggregate Purchase Price.

"<u>Purchased Securities</u>": Any Holdings Trust Certificate subject to a Repurchase Transaction under the Agreement.

"<u>Re-Performing Loan</u>": A Mortgage Loan that was previously a Non-Performing Loan and is currently less than sixty (60) days contractually delinquent as of the most recent Measurement Date (using the MBA Method of Delinquency).

"<u>Records</u>": All instruments, agreements and other books, records, and reports and data generated by other media for the storage of information maintained by Seller or any Servicer with respect to the Underlying Assets.

"<u>Relevant Governmental Body</u>": The Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York or any successor thereto.

"<u>REO Entity</u>": PAL RL REI 1 LLC.

"<u>REO Entity Limited Liability Company Agreement</u>": The Amended and Restated Limited Liability Company Agreement of the REO Entity (as amended from time to time), by PALCO LVS 4 LP, as manager and sole member.

"<u>REO Membership Certificate</u>": The limited liability membership certificate of the REO Entity issued pursuant to the REO Entity Limited Liability Company Agreement.

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"<u>REO Property</u>": A residential real property including land and improvements, together with all buildings, fixtures and attachments thereto, all insurance proceeds, liquidation proceeds, condemnation proceeds, and all other rights, benefits, proceeds and obligations arising from or in connection therewith by Servicer in the name of the Legal Title Trust, or such other entity as may be required pursuant to contractual or regulatory requirements, as a result of the foreclosure, deed in lieu, or other liquidation.

"<u>Repurchase Price</u>": For any Purchased Security as of any date, an amount equal to the sum of (a) the outstanding Purchase Price for such Purchased Security as of such date, (b) the accrued and unpaid Price Differential for such Purchased Security as of such date and (c) all other amounts due and payable with respect to such Purchased Security under the Agreement (including, without limitation, this Annex) or any other Program Document as of such date of determination (including, without limitation, accrued, invoiced and unpaid fees and expenses due hereunder), as such amount is reduced by (d) the amount of any Cash Margin received by Buyer to cure any Net Exposure pursuant to <u>Paragraph 4</u> of the Agreement and applied to the Purchase Price of such Purchased Security.

"<u>Requirements of Law</u>": As to any Person, any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject.

"<u>Residential Transitional Loan</u>": A residential Mortgage Loan, which satisfies the applicable Guidelines and is underwritten to borrowers with investment in mortgaged properties with purposes of selling, refinancing or renting after making improvements on the mortgaged properties, which, for the avoidance of doubt, includes Construction Mortgage Loans.

"<u>Responsible Officer</u>": With respect to any Person, the chief executive officer, the chief financial officer, the chief accounting officer, the treasurer or the chief operating officer of such Person or such other officer designated as an authorized signatory in such Person's Governing Documents.

"<u>Restricted Mortgage Loan</u>": A (i) "Growing Equity Loan," "Manufactured Home Loan," "Graduated Payment Loan," "Buydown Loan," "Project Loan," "Construction Loan" or "HECM Loan," each as defined in the applicable Agency Guide, (ii) a Mortgage Loan for which the related Escrow Payments have not been made by the next succeeding Due Date, or (iii) a High Cost Mortgage Loan.

"<u>RTL Guarantee</u>": As to each Residential Transitional Loan in which the related mortgagor is a corporation, limited liability company, limited partnership, partnership, joint venture, trust or other entity (rather than an individual), a guaranty or similar instrument in which an individual directly or indirectly owning or affiliated with such mortgagor guarantees the obligations of such mortgagor under the related Mortgage Loan Documents.

"<u>Second Lien Loan</u>": A Mortgage Loan with a second priority Lien Position as of the related date of determination.

"<u>Securities Administrator</u>": Computershare Trust Company, National Association.

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"<u>Security</u>": A Ginnie Mae Security, a Fannie Mae Security or a Freddie Mac Security, as applicable.

"<u>Security Account</u>": As defined in the related Pooling Agreement.

"<u>Seller</u>": PALCO LVS 4 LP.

"<u>Servicer</u>": any servicer approved in writing by Buyer in its reasonable discretion, together with their respective permitted successors and assigns.

"<u>Servicing Agreement</u>": (i) any servicing agreement and servicer acknowledgement approved in writing by Buyer in its reasonable discretion or (ii) all such servicing agreements and servicer acknowledgements as the context may require.

"<u>SOFR</u>": With respect to any day, the secured overnight financing rate published for such day by the SOFR Administrator on the SOFR Administrator's website, currently at http://www.newyorkfed.org, or any successor source identified by the SOFR Administrator from time to time.

"<u>SOFR Administrator</u>": The Federal Reserve Bank of New York, as administrator of SOFR (or a successor administrator).

"<u>Strict Compliance</u>": Compliance of the Mortgage Loans with the requirements of the Agency Guide sufficient to enable an Agency-approved issuer, as applicable, to issue and to service and Ginnie Mae to guarantee or Fannie Mae or Freddie Mac to issue and guarantee a Security.

"<u>Subsidiary</u>": With respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

"<u>Term SOFR</u>": With respect to any date of determination, the forward-looking term rate based on SOFR, for a corresponding tenor of one month, as of two (2) Business Days prior to the first day of the corresponding Pricing Period containing such date of determination, as such rate is published by the Term SOFR Administrator; provided, however, that if as of 5:00 p.m. (New York City time) on any such date Term SOFR has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to Term SOFR has not occurred, then Term SOFR will be the Term SOFR as published by the Term SOFR Administrator on the first preceding Business Day for which such Term SOFR was published by the Term SOFR Administrator so long as such first preceding Business Day is not more than three (3) Business Days prior to such determination date.

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"<u>Term SOFR Administrator</u>": The CME Group Benchmark Administration Limited (or any successor administrator of a forward-looking term rate based on SOFR rate approved by Buyer in its sole discretion).

"<u>Trustee</u>": UMB Bank, National Association, as trustee of Holdings Trust, the Grantor Trust or the Legal Title Trust, as applicable.

"<u>U.S. Government Securities Business Day</u>": Any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the U.S. Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>Underlying Asset Component Purchase Price</u>": With respect to each Underlying Asset, an amount equal to the product of (i) the Market Value of each such Underlying Asset and (ii) the Loan Level Advance Rate applicable to each such Underlying Asset as provided in as provided in <u>Section 4</u> of this Annex.

"<u>Underlying Assets</u>": The Mortgage Loans, the Modified Loans and REO Properties indirectly owned by the Holdings Trust.

"<u>USDA</u>": The United States Department of Agriculture or any successor thereto.

"<u>USDA Modified Loan</u>": A Modified Loan that is guaranteed by USDA.

"<u>VA</u>": The United States Department of Veterans Affairs or any successor thereto.

"<u>VA Loan Guaranty Agreement</u>": The obligation of the United States to pay a specific percentage of a Mortgage Loan (subject to a maximum amount) upon default of the mortgagor pursuant to the Servicemen's Readjustment Act, as amended.

"<u>VA Modified Loan</u>": A Modified Loan that is guaranteed by VA.

3. <u>Voting Rights</u>. So long as the Purchased Securities are subject to the Agreement, Buyer, as Holder of
such Purchased Securities, hereby grants to Seller a revocable license to exercise all voting and direction rights inuring to Holder under the Program Documents; <u>provided</u>, <u>however</u>, that no vote shall be cast or direction right
exercised or other action taken which would impair the Purchased Securities, Buyer's rights thereto or thereunder or the Underlying Assets or which would be inconsistent with, or result in a violation of, any provision of the Agreement or the
Program Documents. Notwithstanding the foregoing, the license granted by Buyer pursuant to the prior sentence is revocable by Buyer upon the occurrence and during the continuance of an Event of Default. Upon revocation of such license, Buyer shall
not cast any vote or exercise any direction right or other action taken which would impair the Purchased Securities, the Underlying Assets or which would be inconsistent with or result in a violation of any provision of the Agreement or the Program
Documents; <u>provided</u>, <u>however</u>, that Buyer may direct the sale and liquidation of the Underlying Assets only upon the occurrence and during the continuance of an Event of Default.

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4. <u>Confirmation</u>. <u>Paragraph 3(b)</u> of the Agreement is hereby amended by deleting the second sentence
thereof in its entirely and replacing it with the following:

The Confirmation shall describe the Purchased Securities (including the current Certificate Notional Balance, stated final maturity date and CUSIP number, if any), identify Buyer and Seller and set forth (i) the Purchase Date, (ii) the Repurchase Date, and (iii) any additional terms or conditions of the Repurchase Transaction not inconsistent with this Agreement. The Purchase Price for the Purchased Securities will be an amount equal to the sum of each Underlying Asset Component Purchase Price.

The "<u>Loan Level Advance Rate</u>" as applicable to each Product Type, shall be as follows, unless otherwise set forth in a Confirmation:

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| | | |
|:---|:---|:---|
| **PRODUCT TYPE** | **STATUS** | **LOAN LEVEL ADVANCE<br>RATE** |
|  Agency Loan |  |  |
|  Non-QM Loan |  |  |
|  Re-Performing Loan |  |  |
|  Second Lien Loan |  |  |
|  Second Lien Loan |  |  |
|  Second Lien Loan |  |  |
|  Second Lien Loan |  |  |
|  Second Lien Loan |  |  |
|  Non-Performing Loan |  |  |
|  REO Property |  |  |
|  FHA Modified Loan |  |  |
|  USDA Modified Loan |  |  |
|  VA Modified Loan |  |  |
|  Residential Transitional Loan that is not a Construction Mortgage Loan |  |  |
|  Construction Mortgage Loan |  | or as otherwise<br>specified in the<br>Confirmation\* |

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\*The Loan Level Advance Rate of each Construction Mortgage Loan that is contractually delinquent (using the Mortgage Bankers Association method) for sixty (60) or more days shall be

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With respect to any Repurchase Transaction, the applicable Loan Level Advance Rate applied to a FHA Modified Loan, a USDA Modified Loan or a VA Modified Loan, as applicable, shall be reduced (i) by on the determination date such Modified Loan becomes an Aged Modified Loan or (ii) to thirty (30) days after the determination date such Modified Loan became an Aged Modified Loan.

5. <u>Application of Income</u>. <u>Paragraph 5</u> of the Agreement is hereby amended by adding the following
subparagraph at the end of such Paragraph:

<u>Seller to Remain Liable</u>. If the amounts remitted to Buyer as provided in this <u>Paragraph 5</u> are insufficient to pay all amounts due and payable from Seller to Buyer under this Agreement or any other Program Document on a Payment Date or a Repurchase Date, upon the occurrence of an Event of Default or otherwise, Seller shall nevertheless remain liable for and shall pay to Buyer when due all such amounts.

6. <u>Additional Events of Default</u>. The occurrence of any one or more of the following events shall constitute
an "Event of Default" under the Agreement and shall entitle Buyer, as the non-defaulting party, to exercise the termination rights under <u>Paragraph 10</u> of the Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Seller or Program Manager fails to observe or perform in any material respect any obligation of Seller or the
Program Manager, respectively under the Program Documents, and such failure continues unremedied for thirty (30) calendar days after the earlier of receipt of written notice thereof from Buyer to Seller or the knowledge of such failure by
Seller or the Program Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) any provision of the Program Documents, any right or remedy of Buyer or obligation, covenant, agreement or
duty of Seller or a Guarantor thereunder, ceases to be the legal, valid, binding and enforceable obligation of Seller or such Guarantor, or any Affiliate thereof that is a party thereto and results in a Material Adverse Effect, (ii) the
validity, effectiveness, binding nature or enforceability thereof is contested, challenged, denied or repudiated by Seller, a Guarantor or any Affiliate thereof that is a party thereto, in each case directly, indirectly, in whole or in part, and the
outcome of such contest, challenge, denial or repudiation would result in a Material Adverse Effect, or (iii) any Lien or security interest granted to Buyer under or in connection with the Program Documents terminates, is declared null and
void, ceases to be valid and effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Holdings Trust ceases for any reason to have a valid and perfected first priority security interest in the
"Purchased Securities" (as defined in the Holdings Trust Agreement) or the Legal Title Trust ceases for any reason to hold all beneficial and equitable interests in each Holdback Draw that remains undrawn related to each Residential
Transitional Loan that is a Holdback Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Seller or a Guarantor is required to register as an "investment company" (as defined in the
Investment Company Act), the arrangements contemplated by the Program Documents shall require registration of Seller or a Guarantor as an "investment company" or the REO Entity, the Holdings Trust, the Grantor Trust or the Legal Title
Trust is determined to be a "covered fund" within the meaning of the final regulations issued December 10, 2013, implementing Section 619 of the Dodd- Frank Wall Street Reform and Consumer Protection Act of 2010, commonly known
as the "Volcker Rule";

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Program Manager or the Trustee fails to deposit into the related Collection Account or related Security
Account, as applicable, amounts as required under the Holdings Trust Agreement or Pooling Agreement, as applicable, and such amount is not deposited into such Collection Account or such Security Account, as applicable, within two (2) Business
Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) at any time, Buyer is not owner of all Holdings Trust Certificates.

7. <u>Exit Fees</u>. Upon the sale or disposition of any Underlying Assets for the purpose of entering into a
reverse repurchase transaction with a party that is not an Affiliate of Buyer, Seller shall pay Buyer the Exit Fee on the date of such sale or disposition; *provided,* that the Exit Fee shall be payable only upon such sale or disposition of an
Eligible Underlying Asset for purposes of entering into a reverse repurchase transaction with a party that is not an Affiliate of Buyer.

8. <u>Additional Cure Periods</u>. In addition to any grace or cure periods provided for in the Agreement and
specified herein, the following cure periods shall apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon receipt of a notice from Buyer of a failure to comply with Sections (i) or (iii) of <u>Paragraph 10</u> of the Agreement, Seller shall have one (1) Business Day to cure such default from receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the actual knowledge of Seller of a failure to comply with Section (vi) of <u>Paragraph 10</u> of the
Agreement (other than the representations and warranties set forth in the Schedules hereto), Seller shall have thirty (30) days to cure such failure, unless Seller shall have made any such representation or warranty with actual knowledge that
they were materially false or misleading at the time made.

9. <u>Additional Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Modifications to Guidelines</u>. Upon a material amendment, modification or supplementation of the
Guidelines, Seller shall provide notice thereof to Buyer. With respect to any Underlying Asset originated pursuant to the Guidelines as materially amended, restated, modified or supplemented, the Guidelines shall not be effective for purposes of
determining whether such Underlying Asset is an Eligible Underlying Asset or an Ineligible Underlying Asset unless and until Buyer has consented to the new Guidelines.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Removal of Ineligible Underlying Assets</u>. To the extent that any Underlying Asset is or has become an
Ineligible Underlying Asset, Seller shall, if requested by Buyer, cause the Legal Title Trust to sell such Underlying Asset and Seller shall pay to Buyer the aggregate Repurchase Price attributable to such Underlying Asset as of the date immediately
prior to the date such Underlying Asset becomes an Ineligible Underlying Asset, which purchase price shall be paid to Buyer in reduction of the Repurchase Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Residential Transitional Loan Sublimit</u>. Seller shall not permit the aggregate unpaid principal balance
of the Underlying Assets held by the Legal Title Trust that are Residential Transitional Loans to exceed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Construction Mortgage Loan Sublimit</u>. The Seller shall not permit the aggregate, outstanding, Purchase
Price allocated by Buyer to the Underlying Assets held by the Legal Title Trust that are Construction Mortgage Loans to exceed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reserved</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Limitations on Transfer</u>. With respect any Holdings Trust Certificate, (a) Seller shall not deliver
a Request for Issuance of Trust Certificate (as defined in the Holdings Trust Agreement) without the prior written consent of the Buyer, which consent may be provided to Seller by e-mail, and (b) subject
to the Section 8.08 of the Holdings Trust Agreement, Seller shall not sell, transfer, assign, or otherwise convey any beneficial ownership interest in the Holdings Trust Certificate to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Additional Series of PALCO</u>. The Seller shall promptly notify Buyer in writing upon the formation,
registration, or inclusion of any additional series of PALCO other than the Guarantors. Upon the formation, registration, or inclusion of any additional series of PALCO other than the Guarantors, Buyer and Seller shall work together in good faith to
amend the terms of this Agreement, the Guaranty and any other applicable Program Documents to reflect such additional series as an additional Guarantor and an additional owner of Seller, consistent with the terms hereof and the Program Documents.

10. <u>Remedies upon an Event of Default</u>. In addition to the remedies provided in <u>Paragraph 10</u> of the
Agreement, upon the occurrence and during the continuance of an Event of Default following notice to Seller, Buyer shall have the right to direct the Trustee to sell and liquidate the Underlying Assets.

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11. [Intentionally Omitted]

12. <u>Benchmark Replacement</u>. Notwithstanding anything to the contrary herein or in any other Program Document:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Replacing Future Benchmarks</u>. Upon the occurrence of a Benchmark Transition Event, the Benchmark
Replacement will replace the then-current Benchmark for all purposes hereunder and under any Program Document in respect of any Benchmark setting at or after 5:00 p.m. on the fifth (5th) Business Day after the date notice of such Benchmark
Replacement is provided to Buyer and Seller without any amendment to, or further action or consent of any other party to, this Annex, the Agreement or any other Program Document so long as the Calculation

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Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Buyer. At any time that the administrator of the then-current Benchmark has permanently or indefinitely ceased to provide such Benchmark or such Benchmark has been announced by the regulatory supervisor for the administrator of such Benchmark pursuant to public statement or publication of information to be no longer representative of the underlying market and economic reality that such Benchmark is intended to measure and that representativeness will not be restored, Seller may revoke any request for a Repurchase Transaction to be made or continued that would bear interest by reference to such Benchmark until Seller's receipt of notice from the Calculation Agent that a Benchmark Replacement has replaced such Benchmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Benchmark Replacement Conforming Changes</u>. In connection with the implementation and administration of a
Benchmark Replacement, the Calculation Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Program Document, any amendments implementing
such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Annex, the Agreement or any other Program Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Notices; Standards for Decisions and Determinations</u>. The Calculation Agent will promptly notify Seller
and Buyer of (i) for any replacement pursuant to Section 12(a) of this Annex, the occurrence of a Benchmark Transition Event, (ii) the implementation of any Benchmark Replacement and (iii) the effectiveness of any Benchmark
Replacement Conforming Changes. Any determination, decision or election that may be made by the Calculation Agent or Buyer pursuant to this Section 12, including any determination with respect to a tenor, rate or adjustment or of the occurrence
or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole
discretion and without consent from any other party hereto or any other Program Document, except, in each case, as expressly required pursuant to this Section 12.

13. <u>Purchase Price Maintenance</u>. The parties agree that in any Repurchase Transaction hereunder whose term
extends over a Payment Date for the Purchased Securities subject to such Repurchase Transaction, Buyer shall, on the date such Income is paid, transferred to or credited to the account of Seller an amount equal to such Income payment or payments
pursuant to <u>Paragraph 5</u> of the Agreement and shall not apply the Income payment or payments to reduce the amount to be transferred to Buyer or Seller upon termination of the Repurchase Transaction pursuant to the subparagraph added to <u>Paragraph 5</u> of the Agreement pursuant to <u>Section 5</u> hereof.

14. <u>Expiration of Facility Terms</u>. The Pricing Margins and Loan Level Advance Rates of the Facility will
expire on the Expiration Date, at which time, Buyer and Seller may negotiate mutually acceptable Pricing Margins, Loan Level Advance Rates and a new Expiration Date.

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15. <u>Conditions Precedent</u>. Buyer shall not be obligated to enter into any Repurchase Transaction or purchase
any Purchased Securities until the following conditions have been satisfied or waived by Buyer, on and as of the Closing Date and the initial Purchase Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Buyer has received the following documents, each dated the Closing Date or as of the Closing Date unless
otherwise specified: (i) each Program Document duly executed and delivered by the parties thereto, (ii) official good standing certificates dated a recent date with respect to Seller, the Guarantors and the REO Entity from the respective
jurisdictions in which they are organized, (iii) certificates of the secretary, an assistant secretary or other authorized person of Seller, the Guarantors and the REO Entity with respect to attached copies of the Governing Documents and
applicable resolutions of Seller, the Guarantors and the REO Entity, and the incumbencies and signatures of officers of Seller, the Guarantors and the REO Entity executing the Program Documents to which such Person is a party, evidencing the
authority of Seller, each Guarantor and the REO Entity with respect to the execution, delivery and performance thereof, (iv) such opinions from counsel to Seller and the Guarantors as Buyer may reasonably require, including with respect to
corporate matters, enforceability, non-contravention, no consents or approvals required other than those that have been obtained, first priority perfected security interests in the Purchased Securities and any
other collateral pledged pursuant to the Program Documents, Investment Company Act matters and the applicability of Bankruptcy Code safe harbors, (v) Asset Tape, and (vi) all other documents, certificates, information, financial
statements, reports, approvals and opinions of counsel as Buyer may reasonably require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) UCC financing statements have been filed against Seller in each filing office necessary for the perfection
of the security interest created hereby, (ii) Buyer has received such searches of UCC filings, tax liens, judgments, pending litigation and other matters relating to Seller, the Purchased Securities and Underlying Assets as Buyer may reasonably
require, and (iii) the results of such searches are reasonably satisfactory to Buyer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Buyer has received payment from Seller of all fees and expenses then payable and invoiced under the Program
Documents, in each case, to the extent due, payable and invoiced on or before the Closing Date, and, in the case of legal fees and expenses, subject to the Legal Fee Cap;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Buyer has completed to its satisfaction such due diligence and modeling as it may require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No Event of Default shall have occurred and be continuing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The following statements shall be true, and Seller, by accepting the Purchase Price shall be deemed to have
certified that:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. the representations and warranties contained in Section 16 and Paragraph 9 of the Agreement are correct in
all respects (in the case of any representation or warranty containing any materiality qualifier) or in all material respects (in the case of any representation or warranty that does not contain any materiality qualifier) on and as of such day as
though made on and as of such date, both before and after giving effect to the Repurchase Transaction (or, to the extent such representations and warranties speak as of a specific date, were true and correct on and as of such date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. all covenants and agreements contained in the Program Documents, including the delivery of all reports required
to be delivered thereunder, shall have been complied with by the parties thereto in all material respects.

The failure of Seller to satisfy any of the conditions precedent in this <u>Section 15</u> with respect to any Repurchase Transaction or the Purchased Security shall, unless such failure was waived in writing by Buyer on or before the Purchase Date, give rise to the right of Buyer at any time to rescind the Repurchase Transaction, whereupon Seller shall promptly pay to Buyer the Repurchase Price of such Purchased Security.

16. <u>Additional Representations and Warranties</u>. Seller, solely with respect to itself, each Guarantor, the
Legal Title Trust, the Grantor Trust, the REO Entity and the Program Documents, hereby represents and warrants to Buyer as follows as of the Closing Date and each Purchase Date (except as otherwise set forth specifically in a particular
representation or warranty):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Seller</u>. Seller has been duly organized and validly exists in good standing as a limited partnership
under the laws of the State of Delaware. Seller (i) has all requisite power, authority, legal right, licenses and franchises, except where the failure to do so would not cause a Material Adverse Effect, (ii) is duly qualified to do
business in all jurisdictions necessary, except where the failure to be so qualified would not cause a Material Adverse Effect, and (iii) has been duly authorized by all necessary action, to (W) own, lease and operate its properties and
assets, (X) conduct its business as currently conducted, (Y) execute, deliver and perform its obligations under the Program Documents to which it is a party, and (Z) acquire, own, sell, assign, pledge and repurchase the Purchased
Securities. Seller's exact legal name is PALCO LVS 4 LP. Seller's location (within the meaning of Article 9 of the UCC) is Delaware. Seller has not changed its name or location within the past twelve (12) months. Seller's tax
identification number is 39-2605313. Seller is the sole beneficial owner of the Purchased Securities and an indirect, wholly-owned subsidiary of the Guarantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Legal Title Trust</u>. The Legal Title Trust has been duly organized and validly exists as a common law
trust formed under the laws of the State of New York. The Legal Title Trust (i) has all requisite power, authority, legal right, licenses and franchises, except where the failure to do so would not cause a Material Adverse Effect, (ii) is
duly qualified to do business in all jurisdictions necessary, except where the failure to do so qualified would not cause a Material Adverse Effect, and (iii) has been duly authorized by all necessary action, to (W) own, lease and operate
its properties and assets, (X) conduct its business as currently conducted, (Y) execute, deliver and perform its obligations under the Program Documents to which it is a party, and (Z) acquire, own, sell, assign, pledge and repurchase
the Purchased Securities. The Legal Title Trust holds all beneficial and equitable interests in each Holdback Draw that remains undrawn in respect of each Residential Transitional Loan that is a Holdback Loan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Grantor Trust</u>. The Grantor Trust has been duly organized and validly exists as a common law trust formed
under the laws of the State of New York. The Grantor Trust (i) has all requisite power, authority, legal right, licenses and franchises, except where the failure to do so would not cause a Material Adverse Effect, (ii) is duly qualified to
do business in all jurisdictions necessary, except where the failure to do so qualified would not cause a Material Adverse Effect, and (iii) has been duly authorized by all necessary action, to (W) own, lease and operate its properties and
assets, (X) conduct its business as currently conducted, (Y) execute, deliver and perform its obligations under the Program Documents to which it is a party, and (Z) acquire, own, sell, assign, pledge and repurchase the participation
interests issued to the Grantor Trust and to issue its Grantor Trust Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>REO Entity</u>. The REO Entity has been duly organized and validly exists in good standing as a limited
liability company formed under the laws of the State of Delaware. The REO Entity (i) has all requisite power, authority, legal right, licenses and franchises, except where the failure to do so would not cause a Material Adverse Effect,
(ii) is duly qualified to do business in all jurisdictions necessary, except where the failure to do so qualified would not cause a Material Adverse Effect, and (iii) has been duly authorized by all necessary action, to (W) own, lease
and operate its properties and assets, (X) conduct its business as currently conducted, (Y) execute, deliver and perform its obligations under the Program Documents to which it is a party, and (Z) acquire, own, sell, assign, pledge
and repurchase the participation interests issued to it and to issue the REO Membership Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Holdings Trust</u>. The Holdings Trust has been duly organized and validly exists as a common law trust
formed under the laws of the State of Delaware. The Holdings Trust (i) has all requisite power, authority, legal right, licenses and franchises, except where the failure to do so would not cause a Material Adverse Effect, (ii) is duly
qualified to do business in all jurisdictions necessary, except where the failure to do so qualified would not cause a Material Adverse Effect, and (iii) has been duly authorized by all necessary action, to (W) own, lease and operate its
properties and assets, (X) conduct its business as currently conducted, (Y) execute, deliver and perform its obligations under the Program Documents to which it is a party, and (Z) acquire, own, sell, assign, pledge and repurchase
(i) the Grantor Trust Certificate issued to it and (ii) the REO Membership Certificate issued to it, and to issue the Holdings Trust Certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Program Documents</u>. Each Program Document to which Seller is a party has been duly executed and delivered
by Seller and, subject to the due execution and delivery by each other party thereto, constitutes the legal, valid and binding obligation of Seller enforceable against Seller in accordance with its terms, except as such enforceability may be limited
by Insolvency Laws and general principles of equity. The execution, delivery and performance by Seller of each Program Document to

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which it is a party do not and will not (i) conflict with, result in a breach of, or constitute (with or without notice or lapse of time or both) a default under, any (X) Governing Document, Indebtedness or Contractual Obligation applicable to Seller or any of its properties or assets, (Y) Requirements of Law, or (Z) approval, consent, judgment, decree, order or demand of any Governmental Authority, in each case that would result in a Material Adverse Effect, or (ii) result in the creation of any Lien (other than Permitted Liens) on any of the properties or assets of Seller. All approvals, authorizations, consents, orders, filings, notices or other actions of any Person or Governmental Authority required for the execution, delivery and performance by Seller of the Program Documents to which it is a party and the sale of and grant of a security interest in Purchased Security to Buyer, have been obtained, effected, waived or given (other than any financing statement that has been or will be filed pursuant to the Agreement) and are in full force and effect. The execution, delivery and performance of the Program Documents do not require compliance by Seller with any "bulk sales" or similar law. There is no material litigation, proceeding or investigation pending or, to the knowledge of Seller threatened, against Seller or the Guarantors before any Governmental Authority (a) asserting the invalidity of any Program Document, (b) seeking to prevent the consummation of any Repurchase Transaction, or (c) seeking any determination or ruling that could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Taxes</u>. Seller has filed all required federal income tax returns and all other material tax returns,
domestic and foreign, required to be filed by it and has paid all income, franchise and other material taxes (including mortgage recording taxes), assessments, fees, and other governmental charges payable by it, or with respect to any of its
properties or assets, which have become due, and except for those taxes that are being contested in good faith by appropriate proceedings diligently conducted and for which appropriate reserves have been established in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Default</u>. No Event of Default exists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Investment Company Act</u>. Seller (i) is not required to register under the Investment Company Act
based upon the exemption provided by Section 3(c)(7) of the Investment Company Act (although other exemptions or exclusions may be applicable), and (ii) is not a "covered fund" within the meaning of the final regulations issued
December 10, 2013, implementing Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, commonly known as the "Volcker Rule".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Location of Books and Records</u>. The location where Seller keeps its books and records, including all
computer tapes and records relating to the Underlying Assets, is its chief executive office, the address of which is set forth in Schedule I to this Annex.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Principal Office; Jurisdiction of Formation</u>. On the Closing Date, each of the principal office, chief
executive office, and principal place of business of Seller is located at the address set forth in <u>Schedule I</u> to this Annex. Seller shall provide Buyer with thirty (30) days' advance notice of any change in Seller's principal
office or place of business or jurisdiction. Seller does not have a trade name.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Noncontravention</u>. The consummation of the transactions contemplated by the Agreement and the other
Program Documents to which Seller is a party is in the ordinary course of business of Seller and will not conflict with, result in the breach of or violate any provision of the Governing Documents of Seller or result in the breach of any provision
of, or conflict with or constitute a default under or result in the acceleration of any obligation under, any agreement, indenture, loan or credit agreement or other instrument to which Seller, the Underlying Assets, the Purchased Securities, or any
of Seller's Property is or may be subject to, or result in the violation of any material law, rule, regulation, order, judgment or decree to which Seller, the Underlying Assets or Seller's Property is subject.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Legal Proceeding</u>. There is no action, suit, proceeding, inquiry or investigation, at law or in equity,
or before or by any court, public board or body pending or, to Seller's knowledge, threatened against Seller with respect to which an unfavorable decision, ruling or finding would materially and adversely affect the validity of the Underlying
Assets, the Purchased Securities or the validity or enforceability of the Agreement, the other Program Documents or any agreement or instrument to which Seller is a party and which is used or contemplated for use in the consummation of the
transactions contemplated thereby, would materially and adversely affect the proceedings of Seller in connection herewith or would or could materially and adversely affect Seller's ability to carry out its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>No Consents</u>. No consent, license, approval or authorization from, or registration, filing or declaration
with, any Governmental Authority, is required in connection with the execution, delivery and performance by Seller of the Agreement or any other Program Document to which Seller is a party, other than (i) any that have heretofore been obtained,
given or made and (ii) filings made in connection with the Liens contemplated by the Agreement and the other Program Documents to which Seller is a party.

17. <u>Margin Calls</u>. With respect to the Repurchase Transactions contemplated by this Annex, Margin Notices
must be made in writing (which writing may be electronically by e-mail) directly to Seller contact listed in <u>Schedule I</u> to this Annex and must include calculations in reasonable detail as to the Market
Value for any Mortgage Loan constituting an Underlying Asset. Margin Notices made orally by telephone shall not be accepted.

18. <u>Notices</u>. Notwithstanding anything in the Agreement or this Annex to the contrary, all notices, demands
and other communications referred to in this Annex and in connection with any Repurchase Transaction, including, without limitation, those made in connection with a margin call or otherwise contemplated by the applicable Confirmation, shall be in
writing and sent by email, facsimile, messenger or otherwise to the address specified in <u>Schedule I</u> hereto, or so sent to such party at any other place specified in a notice of change of address hereafter received by the other. In the case of
any notice, demand or other communication to Seller, such notice, demand or other communication must be addressed to the attention indicated in <u>Schedule I</u> hereto or otherwise to the attention of a Responsible Officer of Seller (or to the
attention of such individual or individuals as subsequently notified in writing by a Responsible Officer of Seller).

------

19. <u>No Reliance</u>. In addition to the representations and warranties set forth in Paragraph 9 of the
Agreement, each party hereby makes the following representations and warranties in connection with the Agreement and each Repurchase Transaction thereunder, which shall continue during the term of any such Repurchase Transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) unless there is a written agreement with the other party to the contrary, it is not relying on any advice
(whether written or oral) of the other party, other than the representations expressly set out in the Agreement, including in this Annex;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has made and will make its own decisions regarding the entering into of any Repurchase Transaction based
upon its own judgment and upon advice from such professional advisers as it has deemed it necessary to consult; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it understands the terms, conditions and risks of each Repurchase Transaction and is willing to assume
(financially and otherwise) those risks.

20. <u>Submission to Jurisdiction</u>. Each party irrevocably and unconditionally (i) submits to the non-exclusive jurisdiction of any United States Federal or New York State court sitting in the Borough of Manhattan in The City of New York, and any appellate court from any such court, solely for the purpose of any
suit, action or proceeding brought to enforce its obligations under the Agreement or relating in any way to the Agreement or any Repurchase Transaction under the Agreement, and (ii) waives, to the fullest extent it may effectively do so, any
defense of an inconvenient forum to the maintenance of such action or proceeding in any such court and any right of jurisdiction on account of its place of residence or domicile.

21. <u>Waiver of Immunity</u>. To the extent that either party has or hereafter may acquire any immunity (sovereign
or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from setoff or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment
or otherwise) with respect to itself or any of its property, such party hereby irrevocably waives and agrees not to plead or claim such immunity in respect of any action brought to enforce its obligations under the Agreement or relating in any way
to the Agreement or any Repurchase Transaction under the Agreement.

22. <u>Notice Regarding Client Money Rules</u>. Buyer, as a CRD credit institution (as such term is defined in the
rules of the FCA), holds all money received and held by it hereunder as banker and not as trustee. Accordingly, money that is received and held by Buyer from Seller will not be held in accordance with the provisions of the FCA's Client Asset
Sourcebook relating to client money (the " <u>Client Money Rules</u> ") and will not be subject to the statutory trust provided for under the Client Money Rules. In particular, Buyer shall not segregate money received by it from Seller
from Buyer money and Buyer shall not be liable to account to Seller for any profits made by Buyer use as banker of such cash and upon failure of Buyer, the client money distribution rules within the Client Asset Sourcebook (the " <u>Client Money Distribution Rules</u> ") will not apply to these sums and so Seller will not be entitled to share in any distribution under the Client Money Distribution Rules.

------

23. <u>Counterparts</u>. This Annex may be executed in any number of counterparts, all of which shall constitute
one and the same instrument, and any party hereto may execute this Annex by signing and delivering one or more counterparts. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original
signatures and are binding on all parties. The original documents shall be promptly delivered, if requested. The parties agree that this Annex, any addendum, exhibit or amendment hereto or any other document necessary for the consummation of the
transactions contemplated by this Annex may be accepted, executed or agreed to through the use of an electronic signature in accordance with the federal Electronic Signatures in Global and National Commerce Act (as amended from time to time), the
Official Text of the Uniform Electronic Transactions Act as approved by the National Conference of Commissioners on Uniform State Laws at its Annual Conference on July 29, 1999 and any applicable state law. Any document accepted, executed or
agreed to in conformity with such laws will be binding on all parties hereto to the same extent as if it were physically executed and each party hereby consents to the use of any secure third party electronic signature capture service with
appropriate document access tracking, electronic signature tracking and document retention as may be reasonably chosen by a signatory hereto, including but not limited to DocuSign.

24. <u>Construction</u>. Save for the amendments made hereby, the parties agree that the text of the body of the
Agreement is intended to conform with the Global Master Repurchase Agreement (2000 Version) promulgated by The Bond Market Association and International Securities Market Association and shall be construed accordingly.

25. <u>Governing Law</u>. This Annex shall be governed by and construed in accordance with the laws of England,
provided, however, <u>Sections 20</u> and <u>21</u> of this Annex shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the conflict of laws principles thereof.

26. <u>Financial Certifications and Reporting</u>. Seller shall deliver to Buyer the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In connection with the delivery of the balance sheets and the financial statements referenced in clause
(b) below, a certificate of a financial officer of each Guarantor certifying the related Guarantor's compliance with the financial covenants in Section 6(f) of this Annex; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as is practicable, but in any event within (i) sixty (60) days after the end of each of the first
three quarterly fiscal periods of each fiscal year, unaudited, consolidated balance sheets of each Guarantor for such fiscal period, and (ii) one hundred twenty (120) days after the last day of each fiscal year, the consolidated financial
statements of the related Guarantor for such fiscal year, presented fairly in accordance with GAAP, and accompanied by an unqualified report of an independent certified public accountant that is a member of the American Institute of Certified Public
Accountants.

------

27. <u>Sanctions; Anti-Corruption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Status under Sanctions</u>. None of Seller, or, to the knowledge of Seller, any director, officer, employee,
agent, or affiliate of Seller or any of its Subsidiaries is an individual or entity (" <u>Person</u> ") that is, or is owned 50 percent or more, individually or in the aggregate, directly or indirectly or controlled by Persons that
are: (i) the subject of any sanctions administered or enforced by the U.S. Department of the Treasury's Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security Council, the European Union, His
Majesty's Treasury, or other relevant sanctions authority (collectively, " <u>Sanctions</u> "), or (ii) located, organized or resident in a country or territory that is the subject of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Compliance with Sanctions and Anti-Corruption Laws</u>. Seller is in compliance with all applicable
Sanctions and with the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the " <u>FCPA</u> "), the UK Bribery Act of 2010 (the " <u>UKBA</u> "), and any other applicable anti-corruption
laws. Seller shall maintain in effect policies and procedures designed to promote compliance by Seller, its Affiliates, and their respective directors, officers, employees, and agents, with applicable Sanctions and with the FCPA, the UKBA, and any
other applicable anti-corruption laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Use of Purchase Price</u>. Seller will not, directly or indirectly, use the Purchase Price or any Cash
Margin, or lend, contribute or otherwise make available the Purchase Price to any subsidiary, joint venture partner or other Person, (i) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or
anything else of value, to any Person in violation of the FCPA, the UKBA, or any other applicable anti-corruption law, or (ii) (A) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of
such funding, is the subject of Sanctions, or (B) in any other manner that would result in a violation of Sanctions by any Person.

28. <u>Intent</u>. For purposes of the Repurchase Transactions contemplated by this Annex, the Agreement is hereby
amended by adding the following as a new Paragraph 23:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. **Intent** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is understood that either party's right to liquidate Purchased Securities delivered to it in
connection with Repurchase Transactions hereunder or to exercise any other remedies pursuant to Paragraph 10 hereof is a contractual right to liquidate such Repurchase Transaction as described in Section 555 of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties agree and acknowledge that if a party hereto is an "insured depository institution," as
such term is defined in the Federal Deposit Insurance Act, as amended ("FDIA"), then each Repurchase Transaction hereunder is a "qualified financial contract," as that term is defined in FDIA and any rules, orders or policy
statements thereunder (except insofar as the type of assets subject to such Repurchase Transaction would render such definition inapplicable).

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is understood that this Agreement constitutes a "netting contract" as defined in and subject to
Title IV of the Federal Deposit Insurance Corporation Improvement Act of 1991 ("FDICIA") and each payment entitlement and payment obligation under any Repurchase Transaction hereunder shall constitute a "covered contractual payment
entitlement" or "covered contractual payment obligation", respectively, as defined in and subject to FDICIA (except insofar as one or both of the parties is not a "financial institution" as that term is defined in
FDICIA).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The parties recognize that each of the Repurchase Transactions and this Agreement is a "securities
contract" as that term is defined in Section 741 of the Bankruptcy Code, or a "qualified financial contract" as that term is defined in the Federal Deposit Insurance Act, as applicable, and a "master netting
agreement" as that term is defined in Section 101 of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The parties intend and agree that (1) that each payment under this Agreement has been made by, to or for
the benefit of a financial institution as defined in Section 101(22) of the Bankruptcy Code, a financial participant as defined in Section 101(22A) of the Bankruptcy Code, a "master netting agreement participant," as defined in
Section 101(38B) of the Bankruptcy Code; and (2) payments under this Agreement are deemed "margin payments" or "settlement payments," as defined in Sections 101 and 741(5) of the Bankruptcy Code or transfers made by
or to (or for the benefit of) a financial institution or financial participant in connection with a securities contract or repurchase agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The parties further intend and agree that: (1) Buyer is (for so long as Buyer is a "financial
institution," "financial participant" or other entity listed in Sections 555, 559, 561, 362(b)(6), 362(b)(7) or 362(b)(27) of the Bankruptcy Code) entitled to, without limitation, the liquidation, termination, acceleration, set-off, and non-avoidability rights afforded to parties, such as Buyer, who are parties to a "securities contract" pursuant to Sections 555, 362(b)(6) and 546(c) of the Bankruptcy Code; and a
"master netting agreement" pursuant to Section 561, 362(b)(27) and 546(j) of the Bankruptcy Code; and (2) Buyer's right to liquidate the Purchased Securities delivered to it in connection with the Repurchase Transactions
hereunder or to accelerate or terminate the Agreement or otherwise exercise any other remedies herein is a contractual right to liquidate, accelerate or terminate such Repurchase Transaction as described in Sections 555, 559 and 561 of the
Bankruptcy Code. The parties also recognize, intend and agree that the Agreement is an agreement to provide financial accommodations and is not subject to assumption pursuant to Section 365(a) of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) With respect to the Guaranty provided by the Guarantors, the parties intend and agreed that the Guaranty is
intended to constitute a security agreement or other arrangement or other credit enhancement related to this Agreement and Repurchase Transactions hereunder as defined under Sections 101(38)(A) and 741(7)(A)(xi) of the Bankruptcy Code.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each party agrees that this Agreement is intended to create mutuality of obligations among the parties, and as
such, this Agreement constitutes a contract which (i) is between all of the parties and (ii) places each party in the same right and capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each party agrees that it shall not challenge the characterization of this Agreement or any Repurchase
Transaction as a securities contract and master netting agreement under the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Each party agrees that this Agreement and the Repurchase Transactions entered into hereunder are part of an
integrated, simultaneously-closing suite of financial contracts.

29. <u>Security Interest Matters</u>. For purposes of the Repurchase Transactions contemplated by this Annex, the
Agreement is hereby amended by adding the following as a new Paragraph 24:

---

| | |
|:---|:---|
| "24. | **Security Interest**.  |

---

Although the parties intend that all Repurchase Transactions hereunder be sales and purchases and not loans (other than for U.S. federal income tax purposes), in the event any such Repurchase Transactions are deemed to be loans, and given that Seller is organized under the laws of Delaware, Seller shall be deemed to have pledged and does hereby pledge to Buyer as security for the performance by Seller of its obligations under each such Repurchase Transaction, and shall be deemed to have granted and does hereby grant to Buyer a security interest in, all of the related Purchased Securities with respect to all Repurchase Transactions hereunder and all Income thereon and other proceeds thereof."

30. <u>Margin Maintenance Matters</u>. Notwithstanding the terms and conditions of Paragraph 4(c) of the Agreement,
Seller shall be deemed to not have Net Exposure in respect of Buyer at any time.

31. <u>Tax Matters</u>. Each party to this Agreement acknowledges that it is its intent for purposes of U.S.
federal and applicable state and local income taxes, to treat each Repurchase Transaction as indebtedness of Seller that is secured by the Purchased Securities and the Purchased Securities as owned by Seller for U.S. federal and applicable state and
local income tax purposes in the absence of an Event of Default by Seller. All parties to this Agreement agree to such treatment and agree to take no action inconsistent with this treatment, unless required by applicable law.

REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK

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IN WITNESS WHEREOF the parties have caused this Annex to be executed by their respective officers, thereunto duly authorized, as of the date first above written.

---

| | | | |
|:---|:---|:---|:---|
| **BARCLAYS BANK PLC** | **BARCLAYS BANK PLC** | **PALCO LVS 4 LP** | **PALCO LVS 4 LP** |
|  |  | By: PALCO LVS 4 GP LLC, its general partner | By: PALCO LVS 4 GP LLC, its general partner |
| By: | /s/ Grace Park | By: | /s/ Michael Chiao |
| Name: | Grace Park | Name: | Michael Chiao |
| Title: | Managing Director | Title: | Authorized Person |

---

![LOGO](g112132dsp271.jpg)

*Signature Page to the Annex I.K* 

------

**<u>SCHEDULE I to ANNEX</u>** 

<u>If to Buyer:</u> 

For all notices and Confirmations under this Annex I.K:

Barclays Bank PLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Barclays Bank PLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

With copies to:

Barclays Bank PLC – Operations US

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>For all legal notices under this Annex</u>:

Barclays Bank PLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

<u>If to Seller</u>:

For notices relating to margin calls or Purchased Securities under Paragraph 4 of the Agreement (as amended) and for notices relating to any notice of dispute with respect to Market Value:

PALCO LVS 4 LP

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Schedule I to Annex I.K

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

All other notices and communications under the Agreement and the related Annex and Schedules thereto shall be sent to:

PALCO LVS 4 LP

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

With a copy in the case of any notice delivered under or pursuant to an Event of Default or event which with the passing of time or the delivery of notice of default under or pursuant to Paragraph 10 of the Agreement (as amended by this Annex), would constitute an Event of Default, and/or any notification communication requesting or relating to a waiver, amendment or variation of the rights and/or obligations of the parties under the Agreement (as amended by this Annex), other than Confirmations delivered pursuant to the Agreement to:

Pacific Investment Management Company LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

AND

Pacific Investment Management Company LLC

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Schedule I to Annex I.K

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Schedule I to Annex I.K

------

**<u>SCHEDULE II-A TO ANNEX</u>**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO** 

**ALL MORTGAGE LOANS** 

[Intentionally Omitted]

Schedule II-A to Annex I.K

------

**<u>SCHEDULE II-B TO ANNEX</u>** 

**ADDITIONAL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO** 

**NON-PERFORMING LOANS AND RE-PERFORMING LOANS** 

[Intentionally Omitted]

Schedule II-B to Annex I.I

------

**<u>SCHEDULE II-C TO ANNEX</u>**

**ADDITIONAL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO** 

**NON-QM LOANS** 

[Intentionally Omitted]

Schedule II-C to Annex I.K

------

**<u>SCHEDULE II-D TO ANNEX</u>**

ADDITIONAL REPRESENTATIONS AND WARRANTIES WITH RESPECT TO AGENCY LOANS

[Intentionally Omitted]

Schedule II-D to Annex I.K

------

**<u>SCHEDULE II-E TO ANNEX</u>**

**REPRESENTATIONS AND WARRANTIES WITH RESPECT TO REO PROPERTY** 

[Intentionally Omitted]

Schedule II-E to Annex I.K

## Exhibit 14.1

**Exhibit 14.1** 

**<u>CODE OF BUSINESS CONDUCT AND ETHICS</u>**

**PIMCO ASSET-BASED LENDING COMPANY LLC** 

**INTRODUCTION** 

The PIMCO Asset-Based Lending Company LLC ("**PALCO**" or the "**Company**") is committed to fostering a culture of honesty and high ethical standards. This Code of Business Conduct and Ethics ("**Code**") is designed to assist all directors, officers, committee members, and employees (if any) of PALCO ("**Personnel**") in adhering to the high ethical standards that PALCO follows in conducting its business.<sup>1</sup> The following general principles must govern the activities of Personnel:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must disclose any actual or potential conflict of interest (as defined below) to the Legal and Compliance
department ()"**Legal and Compliance**") of Pacific Investment Management Company LLC, the Company's operating manager ()"**PIMCO**" or the "**Operating Manager** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must not take inappropriate advantage of your position at PALCO for personal benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must endeavor to ensure that PALCO makes full, fair, accurate, timely, and understandable disclosure in
reports and documents to be filed with, or submitted to, the U.S. Securities and Exchange Commission ()"**SEC**") and in other public communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must comply with applicable governmental laws, rules, and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must promptly report any suspected violations of the Code.

Any questions about how to interpret this Code should be raised with Legal and Compliance.

**CONFLICTS OF INTEREST** 

A "conflict of interest" occurs when the private interests of Personnel improperly interfere with the interests of PALCO or its investors. Personal conflicts of interest are generally prohibited as a matter of PALCO policy, unless they have been approved or waived, as applicable, by PALCO and Legal and Compliance.

Certain Personnel, with the exception of PALCO's independent directors (the "**Independent Directors**"), may also be employees or officers of PIMCO or one of its affiliates. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the relationship between PALCO, the Operating Manager and/or Personnel that are officers, employees and/or directors of more than one of such entities. As a result, this Code recognizes that the Personnel will, in the normal course of their duties (whether for PALCO or the Operating Manager), be involved in establishing policies and implementing decisions that will have different effects on PALCO and the Operating Manager. The participation of the Personnel in such activities is inherent in the relationship between PALCO and the Operating Manager and

<sup>1</sup> Code of Business Conduct and Ethics is intended to meet the standards for a code of ethics under the Sarbanes-Oxley Act of 2002, as amended.

------

is consistent with the performance by the Personnel of their duties as officers, employees, committee members, and/or Directors of PALCO. Thus, if performed in conformity with the provisions of PALCO's amended and restated limited liability agreement, as amended, restated, supplemented or otherwise modified from time to time, such activities will be deemed to have been handled ethically and to not constitute a "conflict of interest" for purposes of this Code.

Nothing in this Code shall be construed to restrict the right of the Operating Manager to engage in any activity or business that it is permitted to engage in under the management agreement or restrict any Personnel, who is also a member, partner or employee of the Operating Manager or its affiliates, from taking any action in connection therewith.

Personnel should engage in and promote honest and ethical conduct, including in their handling of actual or apparent conflicts of interest between personal and professional relationships. Personnel must exercise great care any time their personal interests might conflict with those of PALCO or its investors. As PALCO cannot address or foresee every potential conflict of interest or set of circumstances in written policies and procedures, it is the responsibility of Personnel to identify and promptly escalate conflicts of interest to Legal and Compliance. In addition, Directors are expected to make appropriate disclosures to PALCO's Board of Directors (the "**Board**") and to take appropriate steps to recuse themselves from Board decisions with respect to transactions or other matters involving PALCO as to which they are interested parties or with respect to which a conflict of interest exists. Refer to **PALCO's Conflict of Interest and Related Party Transactions Policy** for additional information.

PALCO's policy with respect to several common conflicts of interest are described below. Conflicts of interest may not be always evident, and Personnel should consult with Legal and Compliance if they are uncertain about any situation.

<u>Gifts, Entertainment, and Other Payments</u> 

As a general rule, Personnel are prohibited from offering or providing anything of value in order to improperly obtain or retain business or otherwise influence a business decision.

See the Company's Anti-Corruption Policy for additional information.

<u>Personal Financial Interests and Insider Trading</u> 

Personnel are required to pre-clear and receive prior approval from Legal and Compliance for their and their Immediate Family Member's participation in the private placements of PALCO securities and transactions with or in PALCO.

Personnel are prohibited from purchasing or selling, directly or indirectly, shares of PALCO based on material, non-public information (MNPI).

Additionally, directors and officers, who are subject to Section 16 of the Securities Exchange Act of 1934, as amended (each a "**Reporting Person**"), must provide to Legal and Compliance a copy of their most recent brokerage statements or statements of their investment accounts at the time they become a Reporting Person and may also be required to provide information regarding any trusts or entities that hold or will transact in PALCO's securities.

------

<u>Outside Business Interests</u> 

Personnel must not engage in activities outside of PIMCO or PALCO, without prior approval from Legal and Compliance.

Legal and Compliance may approve an outside activity in their discretion if they determine that an individual's service or activities outside of PIMCO or PALCO would not be inconsistent with the interests of PALCO and its investors. Legal and Compliance may also stipulate that approval of participate in an outside activity is subject to specified conditions designed to mitigate potential conflicts of interest.

**PUBLIC DISCLOSURE** 

It is PALCO policy to make full, fair, accurate, timely and understandable disclosure in compliance with all applicable laws and regulations in all reports and documents that PALCO files with, or submits to, the SEC and all other governmental, quasi-governmental and self-regulatory bodies and in all other public communications made by PALCO. Personnel shall provide accurate financial and accounting data for inclusion in such communications. Personnel shall not knowingly falsify information, misrepresent material facts or omit material facts necessary to avoid misleading PALCO's independent public auditors or unitholders. Personnel shall never take any action to coerce, manipulate, mislead or fraudulently influence PALCO's independent auditors in the performance of their audit or review of PALCO's financial statements. As Personnel, you are required to promote compliance with this Code and to abide by PALCO standards, policies and procedures designed to promote compliance with this Code.

**COMPLIANCE WITH APPLICABLE LAWS** 

The Company is committed to conducting its business in strict compliance with all applicable governmental, state and local laws, rules and regulations. All Personnel are expected at all times to conduct their activities on behalf of PALCO in accordance with this principle. Any violation of applicable laws, rules and regulations by any Personnel should be reported to Legal and Compliance. Company Personnel should seek guidance whenever they are in doubt as to the applicability of any law, rule or regulation or regarding any contemplated course of action.

**REPORTING SUSPECTED VIOLATIONS** 

If any Personnel knows of or suspects any illegal or unethical conduct, or any other violation of this Code or other PALCO compliance policies, they must promptly report this to Legal and Compliance, the chair of the Board's Audit Committee, via the toll-free number or by accessing the related Internet site set forth in **<u>Appendix A</u>**. Personnel may either identify themselves or remain anonymous when reporting a concern. If submitting a concern anonymously, Personnel may exclude their name and indicate on the submission that it is a "Confidential, Anonymous Submission." Personnel may also report anonymously by calling the toll-free number/accessing the Internet site set forth in **<u>Appendix A</u>**.

Examples of the types of reporting required include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A potential breach of law

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A potential breach of regulatory requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A potential breach of PALCO compliance policies, including this Code

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A perceived questionable practice or decision regarding accounting, internal accounting controls or audit matters
that may raise a legal issue or a potential deviation from applicable accounting standards

To the extent possible, PALCO will endeavor to keep confidential the identity of anyone reporting a violation of this Code. PALCO will also keep confidential the identities of Personnel about whom allegations of violations are brought, unless or until it is established that a violation has occurred. It is the PALCO's policy that retaliation against individuals who report actual or suspected violations of this Code of Conduct is prohibited; anyone who attempts to retaliate will be subject to disciplinary action, up to and including dismissal.

Details of the suspected misconduct may be reported to the person(s) under investigation (unless doing so could compromise the investigation), members of the Board and/or its committees, senior management of the Operating Manager and, if necessary, to regulators, the police or other law enforcement authorities. In addition, this information may be reported to the Operating Manager's parent company, auditors, or other third parties. Although PALCO will endeavor to maintain the confidentiality of the identity of the Personnel submitting the report, in certain instances it may not be possible to do so.

All Personnel are expected to cooperate in internal investigations of alleged misconduct.

**TREATMENT OF REPORTS** 

All reports will undergo an initial review by Legal and Compliance who must (1) promptly forward to the Audit Committee any report (a) involving Personnel or (b) that has the actual or potential effect of resulting in (i) misreporting or (ii) loss to the Company, that could have a material impact on the Company's reputation or financial statements, and (2) promptly determine whether to commence an investigation.

Legal and Compliance may, in its reasonable discretion, determine not to commence an investigation if the report contains only unspecified or broad allegations of wrongdoing without appropriate informational support or credibility. If Legal and Compliance determines that an investigation must be conducted, it will promptly commence the investigation. Any decision not to commence an investigation shall be reported to the Audit Committee at its next ordinary meeting. If the Audit Committee does not accept this decision, it will determine whether the Audit Committee itself or Legal and Compliance will investigate the report. Following all investigations, Legal and Compliance shall report the findings to the Audit Committee.

No action will be taken against any complainant who makes a report in good faith, even if the facts alleged are not confirmed by subsequent investigation. Where alleged facts disclosed pursuant to this policy are not substantiated, the conclusions of the investigation shall, to the extent appropriate, be made known to the complainant who made the report.

------

**RIGHT TO COMMUNICATE DIRECTLY** 

This Code will not be interpreted or applied in any manner that would violate any Personnel's rights under applicable law. For example, nothing in this Code prohibits or in any way restricts any Personnel from reporting possible violations of law or regulation to, otherwise communicating directly with, cooperating with or providing information to any governmental or regulatory body or any self-regulatory organization or making other disclosures that are protected under applicable law or regulations of the SEC or any other governmental or regulatory body or self-regulatory organization. Personnel do not need prior PALCO authorization before taking any such action and Personnel are not required to inform PALCO if they choose to take such action.

**WAIVERS OF CODE OF CONDUCT** 

From time to time, PALCO may waive certain provisions of this Code. Any Personnel who believe that a waiver may be called for should discuss the matter with Legal and Compliance or the Chairperson of the Board, or if the Chairperson of the Board is unavailable, the Chairperson of the Audit Committee. Amendments to and waivers of this Code will be publicly disclosed as required by applicable law and regulations. In particular, waivers for executive officers or trustees may be made only by the Board, or the Audit Committee of the Board and must be promptly disclosed in a Form 8-K or on PALCO's website within four business days. Any such waiver of this Code must be approved in writing by Legal and Compliance.

**ENFORCEMENT** 

Failure to comply with this Code, or to report a violation, could lead to remedial action, including warnings, suspensions, termination of employment or such other actions as may be appropriate under the circumstances, as well as civil and criminal liability, in some cases. Such penalties may include a written letter of reprimand, disgorgement, suspension with or without pay or benefits, and termination of service.

**ACKNOWLEDGEMENT** 

Personnel will be asked annually to sign a statement affirming that they have read and understood this Code and that they are in compliance with the Code.

------

**Appendix A** 

<u>Webpage Access and Toll-Free Phone Numbers</u> 

[*Intentionally Omitted*]

## Exhibit 21.1

**Exhibit 21.1** 

List of Subsidiaries of PIMCO Asset-Based Lending Company LLC (as of March 5, 2026)

---

| | |
|:---|:---|
| **Name of Subsidiary** | **Jurisdiction of Incorporation<br>or Organization** |
| PALCO Holding A LLC | Delaware |
| PALCO Holding B LLC | Delaware |
| PALCO Holding A Offshore LP | Cayman Islands |
| PALCO Holding A Offshore Ltd. | Cayman Islands |
| PALCO Holdings 1 LP | Delaware |
| PALCO Holdings 2 LP | Delaware |
| PALCO Holdings 3 LP | Delaware |
| PALCO Holdings 4 LP | Delaware |
| PALCO Holdings 5 LP | Delaware |
| PALCO Strategies LP | Delaware |
| PALCO Liquid Strategies LP | Delaware |
| PALCO LVS 1 LP | Delaware |
| PALCO LVS 2 LP | Delaware |
| PALCO LVS 3 LP | Delaware |
| PALCO LVS 4 LP | Delaware |
| PALCO LVS 5 LP | Delaware |
| PALCO LVS 6 LP | Delaware |
| PALCO LVS 7 LP | Delaware |
| PALCO LVS 8 LP | Delaware |
| PALCO LVS 9 LP | Delaware |
| PALCO LVS 10 LP | Delaware |
| PALCO LVS 11 LP | Delaware |
| PALCO LVS 12 LP | Delaware |
| PALCO LVS 13 LP | Delaware |
| PALCO LVS 14 LP | Delaware |
| PALCO LVS 15 LP | Delaware |
| PALCO LVS 16 LP | Delaware |
| PALCO LVS 17 LP | Delaware |
| PALCO LVS 18 LP | Delaware |
| PALCO LVS 19 LP | Delaware |
| PALCO LVS 20 LP | Delaware |
| PALCO LVS 21 LP | Delaware |
| PALCO LVS 23 LP | Delaware |
| PALCO LVS 24 LP | Delaware |
| PALCO LVS 25 LP | Delaware |
| PALCO LVS 26 LP | Delaware |
| PALCO LVS 27 LP | Delaware |
| PALCO LVS 29 LP | Delaware |
| PALCO LVS 30 LP | Delaware |
| PALCO LVS 4 GP LLC | Delaware |
| PALCO LVS 5 GP LLC | Delaware |
| PALCO LVS 6 GP LLC | Delaware |
| PALCO LVS 7 GP LLC | Delaware |
| PALCO LVS 9 GP LLC | Delaware |
| PAL RL Holdings Trust 1 | New York |
| PAL RL REI 1 LLC | Delaware |
| PAL RL REI 2 LLC | Delaware |
| PAL RL Grantor Trust 1 | New York |
| PAL RL Grantor Trust 2 | New York |
| PAL RL Title Trust 1 | New York |
| PAL RL Title Trust 2 | New York |
| PAL CL Trust 1 | New York |

---

------

---

| | |
|:---|:---|
| PAL CL Trust 2 | New York |
| Loan Funding Structure VIII LLC | Delaware |
| PAL Offshore 1 LTD | Cayman Islands |
| PAL Residential Funding 1 Securities Holding LLC | Delaware |
| PAL Residential Funding 1 Depositor LLC | Delaware |
| PALCO LRA GP LLC | Delaware |
| Phantom Long Ridge Offshore GP Ltd. | Cayman Islands |

---

## Exhibit 31.1

**Exhibit 31.1** 

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER UNDER** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Jason Mandinach, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of PIMCO Asset-Based
Lending Company LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Intentionally omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| **Date:** March 31, 2026 | By: | /s/ Jason Mandinach |
|  |  | Jason Mandinach |
|  |  | Principal Executive Officer |

---

## Exhibit 31.2

**Exhibit 31.2** 

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER UNDER** 

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002** 

I, Crystal Porter, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 10-K of PIMCO Asset-Based
Lending Company LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The registrant's other certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Intentionally omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Disclosed in this report any change in the registrant's internal control over financial reporting that
occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's
internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of
internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| **Date:** March 31, 2026 | By: | /s/ Crystal Porter |
|  |  | Crystal Porter |
|  |  | Principal Financial Officer |

---

## Exhibit 32.1

**Exhibit 32.1** 

**Certification of Principal Executive Officer and Principal Financial Officer** 

**Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to** 

**Section 906 of the Sarbanes-Oxley Act of 2002** 

In connection with the Annual Report on Form 10-K of PIMCO Asset-Based Lending Company LLC (the "Company") for the period ended December 31, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Jason Mandinach, as Principal Executive Officer of the Company, and Crystal Porter, as Principal Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of such officer's knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities
Exchange Act of 1934, as amended; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Company.

---

| | | |
|:---|:---|:---|
| **Date:** March 31, 2026 | By: | /s/ Jason Mandinach |
|  |  | Jason Mandinach |
|  |  | Principal Executive Officer |
| **Date:** March 31, 2026 | By: | /s/ Crystal Porter |
|  |  | Crystal Porter |
|  |  | Principal Financial Officer |

---

\* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.