# EDGAR Filing Document

**Accession Number:** 0001396440
**File Stem:** 0001396440-23-000035
**Filing Date:** 2023-2
**Character Count:** 1659278
**Document Hash:** 969c94b9df4d7cc4fa2a79a968fe3361
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001396440-23-000035.hdr.sgml**: 20230224

**ACCESSION NUMBER**: 0001396440-23-000035

**CONFORMED SUBMISSION TYPE**: 10-K

**PUBLIC DOCUMENT COUNT**: 101

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230224

**DATE AS OF CHANGE**: 20230224

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Main Street Capital CORP
- **CENTRAL INDEX KEY:** 0001396440
- **IRS NUMBER:** 412230745
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 814-00746
- **FILM NUMBER:** 23664396

**BUSINESS ADDRESS:**
- **STREET 1:** 1300 POST OAK BOULEVARD
- **STREET 2:** 8TH FLOOR
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77056
- **BUSINESS PHONE:** (713) 350-6000

**MAIL ADDRESS:**
- **STREET 1:** 1300 POST OAK BOULEVARD
- **STREET 2:** 8TH FLOOR
- **CITY:** HOUSTON
- **STATE:** TX
- **ZIP:** 77056

?xml version="1.0" ? main-20221231

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 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, 2022**

**OR**

□ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

**Commission File Number: 001-33723**

**Main Street Capital Corporation**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Maryland** | **41-2230745** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |
| **1300 Post Oak Boulevard, 8**<sup>th</sup> **Floor**<br>**Houston, TX** | **77056** |
| (Address of principal executive offices) | (Zip Code) |

---

**(713) 350-6000**

(Registrant's telephone number including area code)

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

---

| | | |
|:---|:---|:---|
| **Title of Each Class** | **Trading Symbol** | **Name of Each Exchange on Which**<br>**Registered** |
| Common Stock, par value $0.01 per share | MAIN | New York Stock Exchange |

---

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

**None**

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 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 ⌧

The aggregate market value of the registrant's common stock held by non-affiliates of the registrant as of June 30, 2022, was $2,711.4 million based upon the last sale price for the registrant's common stock on that date.

The number of shares outstanding of the issuer's common stock as of February 23, 2023 was 79,549,888.

**DOCUMENTS INCORPORATED BY REFERENCE**

Portions of the registrants' definitive Proxy Statement for its 2023 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission, are incorporated by reference in this Annual Report on Form 10-K in response to Part III.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| | **<u>[PART I](#i2fdd50ddfd9c475aa1777f627f470473_13)</u>** | |
| <u>[Item 1.](#i2fdd50ddfd9c475aa1777f627f470473_16)</u> | <u>[Business](#i2fdd50ddfd9c475aa1777f627f470473_16)</u> | [2](#i2fdd50ddfd9c475aa1777f627f470473_16) |
| <u>[Item 1A.](#i2fdd50ddfd9c475aa1777f627f470473_19)</u> | <u>[Risk Factors](#i2fdd50ddfd9c475aa1777f627f470473_19)</u> | [22](#i2fdd50ddfd9c475aa1777f627f470473_19) |
| <u>[Item 1B.](#i2fdd50ddfd9c475aa1777f627f470473_22)</u> | <u>[Unresolved Staff Comments](#i2fdd50ddfd9c475aa1777f627f470473_22)</u> | [44](#i2fdd50ddfd9c475aa1777f627f470473_22) |
| <u>[Item 2.](#i2fdd50ddfd9c475aa1777f627f470473_25)</u> | <u>[Properties](#i2fdd50ddfd9c475aa1777f627f470473_25)</u> | [44](#i2fdd50ddfd9c475aa1777f627f470473_25) |
| <u>[Item 3.](#i2fdd50ddfd9c475aa1777f627f470473_28)</u> | <u>[Legal Proceedings](#i2fdd50ddfd9c475aa1777f627f470473_28)</u> | [44](#i2fdd50ddfd9c475aa1777f627f470473_28) |
| <u>[Item 4.](#i2fdd50ddfd9c475aa1777f627f470473_31)</u> | <u>[Mine Safety Disclosures](#i2fdd50ddfd9c475aa1777f627f470473_31)</u> | [44](#i2fdd50ddfd9c475aa1777f627f470473_31) |
|  | **<u>[PART II](#i2fdd50ddfd9c475aa1777f627f470473_34)</u>** |  |
| <u>[Item 5.](#i2fdd50ddfd9c475aa1777f627f470473_37)</u> | <u>[Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](#i2fdd50ddfd9c475aa1777f627f470473_37)</u> | [45](#i2fdd50ddfd9c475aa1777f627f470473_37) |
| <u>[Item 6.](#i2fdd50ddfd9c475aa1777f627f470473_40)</u> | <u>[\[Reserved.\]](#i2fdd50ddfd9c475aa1777f627f470473_40)</u> | [48](#i2fdd50ddfd9c475aa1777f627f470473_40) |
| <u>[Item 7.](#i2fdd50ddfd9c475aa1777f627f470473_43)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2fdd50ddfd9c475aa1777f627f470473_43)</u> | [49](#i2fdd50ddfd9c475aa1777f627f470473_43) |
| <u>[Item 7A.](#i2fdd50ddfd9c475aa1777f627f470473_64)</u> | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i2fdd50ddfd9c475aa1777f627f470473_64)</u> | [63](#i2fdd50ddfd9c475aa1777f627f470473_64) |
| <u>[Item 8.](#i2fdd50ddfd9c475aa1777f627f470473_67)</u> | <u>[Consolidated Financial Statements and Supplementary Data](#i2fdd50ddfd9c475aa1777f627f470473_67)</u> | [65](#i2fdd50ddfd9c475aa1777f627f470473_67) |
| <u>[Item 9.](#i2fdd50ddfd9c475aa1777f627f470473_148)</u> | <u>[Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i2fdd50ddfd9c475aa1777f627f470473_148)</u> | [195](#i2fdd50ddfd9c475aa1777f627f470473_148) |
| <u>[Item 9A.](#i2fdd50ddfd9c475aa1777f627f470473_151)</u> | <u>[Controls and Procedures](#i2fdd50ddfd9c475aa1777f627f470473_151)</u> | [195](#i2fdd50ddfd9c475aa1777f627f470473_151) |
| <u>[Item 9B.](#i2fdd50ddfd9c475aa1777f627f470473_154)</u> | <u>[Other Information](#i2fdd50ddfd9c475aa1777f627f470473_154)</u> | [195](#i2fdd50ddfd9c475aa1777f627f470473_154) |
| <u>[Item 9C.](#i2fdd50ddfd9c475aa1777f627f470473_157)</u> | <u>[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i2fdd50ddfd9c475aa1777f627f470473_157)</u> | [197](#i2fdd50ddfd9c475aa1777f627f470473_157) |
|  | **<u>[PART III](#i2fdd50ddfd9c475aa1777f627f470473_160)</u>** |  |
| <u>[Item 10.](#i2fdd50ddfd9c475aa1777f627f470473_163)</u> | <u>[Directors, Executive Officers and Corporate Governance](#i2fdd50ddfd9c475aa1777f627f470473_163)</u> | [197](#i2fdd50ddfd9c475aa1777f627f470473_163) |
| <u>[Item 11.](#i2fdd50ddfd9c475aa1777f627f470473_166)</u> | <u>[Executive Compensation](#i2fdd50ddfd9c475aa1777f627f470473_166)</u> | [198](#i2fdd50ddfd9c475aa1777f627f470473_166) |
| <u>[Item 12.](#i2fdd50ddfd9c475aa1777f627f470473_169)</u> | <u>[Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](#i2fdd50ddfd9c475aa1777f627f470473_169)</u> | [198](#i2fdd50ddfd9c475aa1777f627f470473_169) |
| <u>[Item 13.](#i2fdd50ddfd9c475aa1777f627f470473_172)</u> | <u>[Certain Relationships and Related Transactions, and Director Independence](#i2fdd50ddfd9c475aa1777f627f470473_172)</u> | [198](#i2fdd50ddfd9c475aa1777f627f470473_172) |
| <u>[Item 14.](#i2fdd50ddfd9c475aa1777f627f470473_175)</u> | <u>[Principal Accountant Fees and Services](#i2fdd50ddfd9c475aa1777f627f470473_175)</u> | [198](#i2fdd50ddfd9c475aa1777f627f470473_175) |
|  | **<u>[PART IV](#i2fdd50ddfd9c475aa1777f627f470473_178)</u>** |  |
| <u>[Item 15.](#i2fdd50ddfd9c475aa1777f627f470473_181)</u> | <u>[Exhibits and Consolidated Financial Statement Schedules](#i2fdd50ddfd9c475aa1777f627f470473_181)</u> | [199](#i2fdd50ddfd9c475aa1777f627f470473_181) |
| <u>[Signatures](#i2fdd50ddfd9c475aa1777f627f470473_184)</u> | <u>[Signatures](#i2fdd50ddfd9c475aa1777f627f470473_184)</u> | [202](#i2fdd50ddfd9c475aa1777f627f470473_184) |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS**

*This Annual Report on Form 10-K contains forward-looking statements regarding the plans and objectives of management for future operations and which relate to future events or our future performance or financial condition. Any such forward-looking statements may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by any forward-looking statements. Forward-looking statements, which involve assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "should," "expect," "anticipate," "estimate," "believe," "intend" or "project" or the negative of these words or other variations on these words or comparable terminology. These forward-looking statements are based on assumptions that may be incorrect, and we cannot assure you that the projections included in these forward-looking statements will come to pass. Our actual results could differ materially from those expressed or implied by the forward-looking statements as a result of various factors, including, without limitation, the factors discussed in Item 1A entitled "Risk Factors" in Part I of this Annual Report on Form 10-K and elsewhere in this Annual Report on Form 10-K and in other filings we may make with the Securities and Exchange Commission ("SEC") from time to time. Other factors that could cause actual results to differ materially include changes in the economy and future changes in laws or regulations and conditions in our operating areas.*

*We have based the forward-looking statements included in this Annual Report on Form 10-K on information available to us on the date of this Annual Report on Form 10-K, and we assume no obligation to update any such forward-looking statements, unless we are required to do so by applicable law. However, you are advised to refer to any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including subsequent annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.*

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**PART I**

**Item 1. *Business***

**ORGANIZATION**

Main Street Capital Corporation ("MSCC") is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ("LMM") companies and debt capital to middle market ("Middle Market") companies. The portfolio investments of MSCC and its consolidated subsidiaries are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. MSCC seeks to partner with entrepreneurs, business owners and management teams and generally provides "one-stop" financing alternatives within its LMM investment strategy. MSCC and its consolidated subsidiaries invest primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.

MSCC was formed in March 2007 to operate as an internally managed business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.

MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP ("MSMF") and Main Street Capital III, LP ("MSC III" and, together with MSMF, the "Funds"), and each of their general partners. The Funds are each licensed as a Small Business Investment Company ("SBIC") by the United States Small Business Administration ("SBA").

MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly-owned subsidiary of MSCC to provide investment management and other services to parties other than MSCC and its subsidiaries ("External Parties") and receives fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission ("SEC") to allow the External Investment Manager to register as a registered investment adviser under the Investment Advisers Act of 1940, as amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements.

MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a result, MSCC generally does not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.

MSCC has certain direct and indirect wholly-owned subsidiaries that have elected to be taxable entities (the "Taxable Subsidiaries"). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes. MSCC also has certain direct and indirect wholly-owned subsidiaries formed for financing purposes (the "Structured Subsidiaries").

Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our," the "Company" and "Main Street" refer to MSCC and its consolidated subsidiaries, which include the Funds, the Taxable Subsidiaries and the Structured Subsidiaries.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

The following diagram depicts our organizational structure:

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** | **Main Street Capital Corporation ("MSCC")** |
|  |  | 100% | 100% |  |  |  | 100% |  |  |
|  | **Main Street Mezzanine Management, LLC** | **Main Street Mezzanine Management, LLC** | **Main Street Capital III GP, LLC** | **Main Street Capital III GP, LLC** |  | **Other Holding Companies\*** | **Other Holding Companies\*** | **Other Holding Companies\*** |  |
| 99.6% | 0.4% |  |  | 1% | 99% |  |  |  | 100% |
| **Main Street Mezzanine Fund, LP ("MSMF")** | **Main Street Mezzanine Fund, LP ("MSMF")** |  |  | **Main Street Capital III, LP ("MSC III")** | **Main Street Capital III, LP ("MSC III")** | **Main Street Capital III, LP ("MSC III")** |  | **MSC Adviser I, LLC ("External Investment Manager")\*\*** | **MSC Adviser I, LLC ("External Investment Manager")\*\*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;

______________________

\*&nbsp;&nbsp;&nbsp;&nbsp;Other Holding Companies includes the Taxable Subsidiaries, the Structured Subsidiaries and other entities formed for operational purposes. Each of these companies is directly or indirectly wholly-owned by MSCC.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;The External Investment Manager is accounted for as a portfolio investment at fair value, as opposed to a consolidated subsidiary, and is indirectly wholly-owned by MSCC.

**CORPORATE INFORMATION**

Our principal executive offices are located at 1300 Post Oak Boulevard, 8<sup>th</sup> Floor, Houston, Texas 77056. We maintain a website on the Internet at <u>www.mainstcapital.com</u>. We make available free of charge on our website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports as soon as reasonably practicable after such material is electronically filed with or furnished to the SEC. Information contained on our website is not incorporated by reference into this Annual Report on Form 10-K, and you should not consider that information to be part of this Annual Report on Form 10-K. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and all amendments to those reports and other public filings are also available free of charge on the EDGAR Database on the SEC's website at <u>www.sec.gov</u>.

**OVERVIEW OF OUR BUSINESS**

Our principal investment objective is to maximize our portfolio's total return by generating current income from our debt investments and current income and capital appreciation from our equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company. We seek to achieve our investment objective through our LMM, Private Loan (as defined below) and Middle Market investment strategies. Our LMM investment strategy involves investments in companies that generally have annual revenues between $10 million and $150 million, and our LMM portfolio investments generally range in size from $5 million to $75 million. Our private loan ("Private Loan") investment strategy involves investments in companies that are consistent with the size of the companies in our LMM and Middle Market investment strategies, and our Private Loan investments generally range in size from $10 million to $75 million. Our Middle Market investment strategy involves investments in companies that are generally larger in size than our LMM companies, with annual revenues typically between $150 million and $1.5 billion, and our Middle Market investments generally range in size from $3 million to $25 million.

We seek to fill the financing gap for LMM businesses, which, historically, have had limited access to financing from commercial banks and other traditional sources. The underserved nature of the LMM creates the opportunity for us to meet the financing needs of LMM companies while also negotiating favorable transaction terms and equity participation. Our ability to invest across a company's capital structure, from secured loans to equity securities, allows us to offer portfolio companies a comprehensive suite of financing options, or a "one-stop" financing solution. Providing customized, "one-stop" financing solutions is important to LMM portfolio companies. We generally seek to partner directly with

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

entrepreneurs, management teams and business owners in making our investments. Our LMM portfolio debt investments are generally secured by a first lien on the assets of the portfolio company and typically have a term of between five and seven years from the original investment date.

Private Loan investments consist generally of loans that either (i) primarily have originated directly by us or (ii) to a lesser extent, through strategic relationships with other investment funds on a collaborative basis that are often referred to in the debt markets as "club deals" because of the small lender group size. In both cases, our Private Loan investments are typically made to a company to support the acquisition of the company by a private equity sponsor. Private Loan investments are typically similar in size, structure, terms and conditions to investments we hold in our LMM portfolio and Middle Market portfolio. Our Private Loan portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date. We may also invest alongside the sponsor in the equity securities of our Private Loan portfolio companies.

Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing syndicated loans or debt securities in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have an expected duration of between three and seven years from the original investment date.

Our other portfolio ("Other Portfolio") investments primarily consist of investments that are not consistent with the typical profiles for our LMM, Private Loan or Middle Market portfolio investments, including investments which may be managed by third parties. In our Other Portfolio, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.

Subject to changes in our cash and overall liquidity, our Investment Portfolio (as defined below) may also include short-term portfolio investments that are atypical of our LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital. These assets are typically expected to be liquidated in one year or less and are not expected to be a significant portion of the overall Investment Portfolio.

Our external asset management business is conducted through the External Investment Manager. The External Investment Manager earns management fees based on the assets of the funds under management and may earn incentive fees, or a carried interest, based on the performance of the funds managed.

Our portfolio investments are generally made through MSCC, the Taxable Subsidiaries, the Funds and the Structured Subsidiaries. MSCC, the Taxable Subsidiaries, the Funds and the Structured Subsidiaries share the same investment strategies and criteria, although they are subject to different regulatory regimes (see *Regulation*). An investor's return in MSCC will depend, in part, on the Taxable Subsidiaries', the Funds' and the Structured Subsidiaries' investment returns as they are wholly-owned subsidiaries of MSCC.

The level of new portfolio investment activity will fluctuate from period to period based upon our view of the current economic fundamentals, our ability to identify new investment opportunities that meet our investment criteria, and our ability to consummate the identified opportunities. The level of new investment activity, and associated interest and fee income, will directly impact future investment income. In addition, the level of dividends paid by portfolio companies and the portion of our portfolio debt investments on non-accrual status will directly impact future investment income. While we intend to grow our portfolio and our investment income over the long term, our growth and our operating results may be more limited during depressed economic periods. However, we intend to appropriately manage our cost structure and liquidity position based on applicable economic conditions and our investment outlook. The level of realized gains or losses and unrealized appreciation or depreciation on our investments will also fluctuate depending upon portfolio activity, economic conditions and the performance of our individual portfolio companies. The changes in realized gains and losses and unrealized appreciation or depreciation could have a material impact on our operating results.

Because we are internally managed, we do not pay any external investment advisory fees, but instead directly incur the operating costs associated with employing investment and portfolio management professionals. We believe that our internally managed structure provides us with a better alignment of interests between our management team and our employees and our shareholders and a beneficial operating expense structure when compared to other publicly traded and privately held investment firms which are externally managed, and our internally managed structure allows us the opportunity to leverage our non-interest operating expenses as we grow our Investment Portfolio (as defined below) and our External Investment Manager's asset management business (as defined below). For the years ended December 31,

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

2022 and 2021, the ratio of our total operating expenses, excluding interest expense, as a percentage of our quarterly average total assets was 1.4% and 1.5%, respectively. The ratio of our total operating expenses, including interest expense, as a percentage of our quarterly average total assets was 3.3% and 3.4%, respectively, for the years ended December 31, 2022 and 2021. For further information on our expense ratio refer to Note F to the consolidated financial statements included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

Through the External Investment Manager, we serve as the sole investment adviser and administrator to MSC Income Fund, Inc. ("MSC Income") pursuant to an Investment Advisory and Administrative Services Agreement entered into between the External Investment Manager and MSC Income (the "Advisory Agreement"). Under the Advisory Agreement, the External Investment Manager earns a 1.75% annual base management fee and a 20% incentive fee on MSC Income's pre-investment fee net investment income above a specified hurdle rate in exchange for providing advisory services to MSC Income.

Additionally, the External Investment Manager has entered into an Investment Management Agreement with MS Private Loan Fund I, LP, a private investment fund with a strategy to co-invest with Main Street in Private Loan portfolio investments (the "Private Loan Fund"), pursuant to which the External Investment Manager provides investment advisory and management services to the Private Loan Fund in exchange for an asset-based fee and certain incentive fees. The External Investment Manager may also advise other clients, including funds and separately managed accounts, pursuant to advisory and services agreements with such clients in exchange for asset-based and incentive fees.

The External Investment Manager earns management fees based on the assets of the funds and accounts under management and may earn incentive fees, or a carried interest, based on the performance of the funds and accounts managed. The total contribution of the External Investment Manager to our net investment income consists of the combination of the expenses allocated to the External Investment Manager and the dividend income earned from the External Investment Manager. For the years ended December 31, 2022, 2021 and 2020, the total contribution of the External Investment Manager to our net investment income was $22.3 million, $16.5 million and $9.9 million, respectively. During the year ended December 31, 2022, the External Investment Manager earned $21.8 million in base management fees, and $2.5 million in incentive fees and $0.6 million in administrative service fees compared to $17.7 million of base management fees and $0.6 million in incentive fees in 2021 and $10.7 million of base management fees and no incentive fees in 2020 for the investment advisory services provided to MSC Income, the Private Loan Fund and other clients.

We have entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with MSC Income and its other clients. Through this agreement, we share employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities, and we allocate the related expenses to the External Investment Manager pursuant to the sharing agreement. Our total expenses for the years ended December 31, 2022, 2021 and 2020 are net of expenses allocated to the External Investment Manager of $13.0 million, $10.3 million and $7.4 million, respectively.

We have received an exemptive order from the SEC permitting co-investments among us, MSC Income and other funds and clients advised by the External Investment Manager in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act. We have made co-investments with, and in the future intend to continue to make co-investments with MSC Income, the Private Loan Fund and other clients advised by the External Investment Manager, in accordance with the conditions of the order. The order requires, among other things, that we and the External Investment Manager consider whether each such investment opportunity is appropriate for us and the External Investment Manager's advised clients, as applicable, and if it is appropriate, to propose an allocation of the investment opportunity between such parties. Because the External Investment Manager may receive performance-based fee compensation from funds and clients advised by the External Investment Manager, this may provide the Company and the External Investment Manager an incentive to allocate opportunities to other participating funds and clients instead of us. However, both we and the External Investment Manager have policies and procedures in place to manage this conflict, including oversight by the independent members of our Board of Directors. In addition to the co-investment program described above, we also co-invest in syndicated deals and other transactions where price is the only negotiated point by us and our affiliates.

**BUSINESS STRATEGIES**

Our principal investment objective is to maximize our portfolio's total return by generating current income from our debt investments and current income and capital appreciation from our equity and equity-related investments, including

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

warrants, convertible securities and other rights to acquire equity securities in a portfolio company. We have adopted the following business strategies to achieve our investment objective:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Deliver Customized Financing Solutions in the Lower Middle Market.* We offer LMM portfolio companies customized debt and equity financing solutions that are tailored to the facts and circumstances of each situation. We believe our ability to provide a broad range of customized financing solutions to LMM companies sets us apart from other capital providers that focus on providing a limited number of financing solutions. Our ability to invest across a company's capital structure, from senior secured loans to subordinated debt to equity securities, allows us to offer LMM portfolio companies a comprehensive suite of financing options, or a "one-stop" financing solution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Focus on Established Companies.* We generally invest in companies with established market positions, experienced management teams and proven revenue streams. We believe that those companies generally possess better risk-adjusted return profiles than newer companies that are building their management teams or are in the early stages of building a revenue base. We also believe that established companies in our targeted size range also generally provide opportunities for capital appreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Leverage the Skills and Experience of our Investment Team.* Our investment team has significant experience in lending to and investing in LMM and Middle Market companies. The members of our investment team have broad investment backgrounds, with prior experience at private investment funds, investment banks and other financial services companies and currently include seven certified public accountants and two Chartered Financial Analyst<sup>®</sup> charter holders. The expertise of our investment team in analyzing, valuing, structuring, negotiating and closing transactions should provide us with competitive advantages by allowing us to consider customized financing solutions and non-traditional or complex structures for our portfolio companies. Also, the reputation of our investment team has and should continue to enable us to generate additional revenue in the form of management and incentive fees in connection with us providing advisory services to other investment funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Invest Across Multiple Companies, Industries, Regions and End Markets.* We seek to maintain a portfolio of investments that is appropriately balanced among various companies, industries, geographic regions and end markets. This portfolio balance is intended to mitigate the potential effects of negative economic events for particular companies, regions, industries and end markets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Capitalize on Strong Transaction Sourcing Network.* Our investment team seeks to leverage its extensive network of referral sources for portfolio company investments. We have developed a reputation in our marketplace as a responsive, efficient and reliable source of financing, which has created a growing stream of proprietary deal flow for us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Grow our Asset Management Business.* Our asset management business provides us with a recurring source of income, additional income diversification from sources of income directly tied to invested capital and the opportunity for greater stockholder returns through the utilization of our existing investment expertise, strong historical track record and favorable reputation. We seek to grow our asset management business within our internally managed BDC structure in order to increase the value of this unique benefit to our stakeholders. We expect such growth to come organically through the expansion of the investment capital that we manage for third parties and the potential extension of our asset management business to new investment strategies, and potentially through mergers and acquisition activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Benefit from Lower, Fixed, Long-Term Cost of Capital.* The SBIC licenses held by the Funds have allowed them to issue SBA-guaranteed debentures. SBA-guaranteed debentures carry long-term fixed interest rates that are generally lower than interest rates on comparable bank loans and other debt. Because lower-cost SBA leverage is, and will continue to be, a significant part of our capital base through the Funds, our relative cost of debt capital should be lower than many of our competitors. In addition, the SBIC leverage that we receive through the Funds represents a stable, long-term component of our capital structure with proper matching of duration and cost compared to our LMM portfolio investments. We also maintain investment grade ratings from both Standard & Poor's Ratings Services and Fitch Ratings, which provide us the opportunity and flexibility to obtain additional, attractive long-term financing options to supplement our capital structure, including the unsecured notes with fixed interest rates we issued in 2019, 2020, 2021, 2022 and 2023.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**INVESTMENT CRITERIA**

Our investment team has identified the following investment criteria that it believes are important in evaluating prospective portfolio companies. Our investment team uses these criteria in evaluating investment opportunities. However, not all of these criteria have been, or will be, met in connection with each of our investments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Proven Management Team with Meaningful Equity Stake.* We look for operationally-oriented management with direct industry experience and a successful track record. In addition, we expect the management team of each LMM portfolio company to have meaningful equity ownership in the portfolio company to better align our respective economic interests. We believe management teams with these attributes are more likely to manage the companies in a manner that both protects our debt investment and enhances the value of our equity investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Established Companies with Positive Cash Flow.* We seek to invest in established companies with sound historical financial performance. We typically focus on LMM companies that have historically generated earnings before interest, taxes, depreciation and amortization ("EBITDA") of $3 million to $20 million and commensurate levels of free cash flow. We also pursue investments in debt securities of Middle Market companies that are generally established companies with sound historical financial performance that are generally larger in size than LMM companies. We generally do not invest in start-up companies or companies with speculative business plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Defensible Competitive Advantages/Favorable Industry Position.* We primarily focus on companies having competitive advantages in their respective markets and/or operating in industries with barriers to entry, which may help to protect their market position and profitability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Exit Alternatives.* We exit our debt investments primarily through the repayment of our investment from internally generated cash flow of the portfolio company and/or a refinancing. In addition, we seek to invest in companies whose business models and expected future cash flows may provide alternate methods of repaying our investment, such as through a strategic acquisition by other industry participants or a recapitalization.

**INVESTMENT PORTFOLIO**

The "Investment Portfolio", as used herein, refers to all of our investments in LMM companies (including both our LMM and Private Loan portfolio investments) and investments in Middle Market companies (including both our Private Loan and Middle Market portfolio investments), Other Portfolio investments and our investment in the External Investment Manager. Our LMM portfolio investments primarily consist of secured debt, direct equity investments and equity warrants in privately held, LMM companies based in the United States. Our Private Loan portfolio investments primarily consist of investments in interest-bearing debt securities in companies that are consistent with the size of the companies in our LMM portfolio and Middle Market portfolio and are originated either (i) directly by us or (ii) to a lesser extent, through strategic relationships with other investment funds on a collaborative basis that are often referred to in the debt markets as "club deals" because of the small lender group size. In both cases, our Private Loan investments are typically made to a company to support the acquisition of the company by a private equity sponsor. Our Middle Market portfolio investments primarily consist of direct investments in or secondary purchases of interest-bearing debt securities in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Other Portfolio investments primarily consist of investments that are not consistent with the typical profiles for our LMM, Private Loan and Middle Market portfolio investments, including investments which may be managed by third parties. In our Other Portfolio, we may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds.

***Debt Investments***

Historically, we have made LMM debt investments principally in the form of single tranche debt. Single tranche debt financing involves issuing one debt security that blends the risk and return profiles of both first lien secured and subordinated debt. We believe that single tranche debt is more appropriate for many LMM companies given their size in order to reduce structural complexity and potential conflicts among creditors.

Our LMM debt investments generally have a term of five to seven years from the original investment date, with limited required amortization prior to maturity, and provide for monthly or quarterly payment of interest at interest rates

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

generally between 10% and 14% per annum, payable currently in cash. Interest rate terms can include either fixed or floating rate terms. The LMM debt investments with floating interest rates will generally bear interest at the London Interbank Offered Rate ("LIBOR"), the Secured Overnight Financing Rate ("SOFR") or the Prime rate typically subject to a contractual minimum interest rate (an "interest rate floor"), plus a margin. In addition, certain LMM debt investments may have a form of interest that is not paid currently but is accrued and added to the loan balance and paid at maturity. We refer to this form of interest as payment-in-kind, or PIK, interest. We typically structure our LMM debt investments with the maximum seniority and collateral that we can reasonably obtain while seeking to achieve our total return target. In most cases, our LMM debt investment will be collateralized by a first priority lien on substantially all the assets of the portfolio company. In addition to seeking a senior lien position in the capital structure of our LMM portfolio companies, we seek to limit the downside potential of our LMM debt investments by negotiating covenants that are designed to protect our LMM debt investments while affording our portfolio companies as much flexibility in managing their businesses as is reasonable. Such restrictions may include affirmative and negative covenants, default penalties, lien protection, change of control or change of management provisions, key-man life insurance, guarantees, equity pledges, personal guaranties, where appropriate, and put rights. In addition, we typically seek board representation or observation rights in all of our LMM portfolio companies.

While we will continue to focus our LMM debt investments primarily on single tranche debt investments, we may structure some of our debt investments as mezzanine loans. These mezzanine loans would be primarily junior secured or unsecured, subordinated loans that would provide for relatively high interest rates, payable currently in cash, and would provide us with significant interest income. These mezzanine loans would afford us the additional opportunity for income and gains through PIK interest and equity warrants and other similar equity instruments issued in conjunction with these mezzanine loans. These loans typically would have interest-only payments in the early years, with amortization of principal deferred to the later years of the mezzanine loan term. Typically, these mezzanine loans would have maturities of three to five years. We would generally target interest rates of 12% to 14%, payable currently in cash, for our mezzanine loan investments with higher targeted total returns from equity warrants or PIK interest.

Our Private Loan portfolio investments primarily consist of investments in interest-bearing debt securities in companies that are consistent with the size of companies in our LMM portfolio or our Middle Market portfolio, but are investments which have been originated directly by Main Street or through strategic relationships with other investment funds on a collaborative basis and are typically made to a company to support the acquisition of the company by a private equity sponsor. The debt investments in our Private Loan portfolio have rights and protections that are similar to those in our LMM debt investments, which may include affirmative and negative covenants, default penalties, lien protection, change of control provisions, guarantees and equity pledges. Our Private Loan portfolio debt investments are generally secured by a first priority lien and typically have a term of between three and seven years from the original investment date. Our Private Loan debt investments generally have floating interest rates at LIBOR, SOFR or Prime rate typically subject to an interest rate floor, plus a margin.

We also pursue debt investments in Middle Market companies. Our Middle Market portfolio investments primarily consist of direct investments or secondary purchases of interest-bearing debt securities in privately held companies based in the United States that are generally larger in size than the companies included in our LMM portfolio. Our Middle Market portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date. The debt investments in our Middle Market portfolio usually have rights and protections that are similar to those in our LMM and Private Loan debt investments. The Middle Market debt investments generally have floating interest rates at LIBOR, SOFR or Prime rate typically subject to an interest rate floor, plus a margin.

***Warrants***

In connection with our LMM debt investments, we occasionally receive equity warrants to establish or increase our equity interest in the portfolio company. Warrants that we receive in connection with a debt investment typically require only a nominal cost to exercise, and thus, as a portfolio company appreciates in value, we may achieve additional investment return from this equity interest. We typically structure the warrants to provide provisions protecting our rights as a minority-interest holder, as well as secured or unsecured put rights, or rights to sell such securities back to the portfolio company, upon the occurrence of specified events. In certain cases, we also may obtain registration rights in connection with these equity interests, which may include demand and "piggyback" registration rights.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***Direct Equity Investments***

We also seek to make direct equity investments to align our interests with key management and stockholders of our LMM portfolio companies, and to allow for participation in the appreciation in the equity values of our LMM portfolio companies. We usually make our direct equity investments in connection with debt investments in our LMM portfolio companies. In addition, we may have both equity warrants and direct equity positions in some of our LMM portfolio companies. We seek to maintain fully diluted equity positions in our LMM portfolio companies of 5% to 50%, and may have controlling equity interests in some instances. We have a value orientation toward our direct equity investments and have traditionally been able to purchase our equity investments at reasonable valuations. We will also have, from time to time, the opportunity to make an equity co-investment in the equity securities of our Private Loan portfolio companies alongside the private equity sponsor. The equity co-investment aligns our interests with those of the private equity sponsor and provides us with the opportunity to benefit from appreciation on our investment.

**INVESTMENT PROCESS**

Our management team's investment committee is responsible for all aspects of our investment processes. The current members of our investment committee are Dwayne L. Hyzak, our Chief Executive Officer, David Magdol, our President and Chief Investment Officer, and Vincent D. Foster, our Senior Advisor and Chairman of the Board.

The investment processes for LMM, Private Loan and Middle Market portfolio investments are outlined below. Our investment strategy involves a "team" approach, whereby potential transactions are screened by several members of our investment team before being presented to the investment committee. Our investment committee meets on an as-needed basis depending on transaction volume. We generally categorize our investment process into seven distinct stages:

***Deal Generation/Origination***

Deal generation and origination is maximized through long-standing and extensive relationships with industry contacts, brokers, commercial and investment bankers, entrepreneurs, service providers such as lawyers, financial advisors and accountants, and current and former portfolio companies and investors. Our investment team has focused its deal generation and origination efforts on LMM, Private Loan and Middle Market investments, and we have developed a reputation as a knowledgeable, reliable and active source of capital and assistance in these markets.

***Screening***

During the screening process, if a transaction initially meets our investment criteria, we will perform preliminary due diligence, taking into consideration some or all of the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a comprehensive financial model based on quantitative analysis of historical financial performance, projections and pro forma adjustments to determine the estimated internal rate of return;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a brief industry and market analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• direct industry expertise imported from other portfolio companies or investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• preliminary qualitative analysis of the management team's competencies and backgrounds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• potential investment structures and pricing terms; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory compliance.

Upon successful screening of a proposed LMM transaction, the investment team makes a recommendation to our investment committee. If our investment committee concurs with moving forward on the proposed LMM transaction, we typically issue a non-binding term sheet or letter of intent to the company. Upon successful screening of a proposed Private Loan transaction, the investment team makes a recommendation to our investment committee. If our investment committee concurs with moving forward on the proposed Private Loan transaction, we typically issue a non-binding term sheet to the company. For Middle Market portfolio investments, the initial term sheet is typically issued by the borrower, through the syndicating bank, and is screened by the investment team which makes a recommendation to our investment committee.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***Term Sheet***

For proposed LMM transactions, the non-binding term sheet or letter of intent will include the key economic terms based upon our analysis performed during the screening process, as well as a proposed timeline and our qualitative expectation for the transaction. While the term sheet or letter of intent for LMM investments is non-binding, we typically receive an expense deposit in order to move the transaction to the due diligence phase. Upon execution of a term sheet, we begin our formal due diligence process.

For proposed Private Loan transactions, the non-binding term sheet will include the key economic terms based upon our analysis performed during the screening process, as well as a proposed timeline and our qualitative expectation for the transaction. Upon execution of a term sheet, we begin our formal due diligence process.

For proposed Middle Market transactions, the initial term sheet will include key economic terms and other conditions proposed by the borrower and its representatives and the proposed timeline for the investment, which are reviewed by our investment team to determine if such terms and conditions are in agreement with our investment objectives.

***Due Diligence***

Due diligence on a proposed LMM investment is performed by a minimum of three of our investment professionals, whom we refer to collectively as the investment team, and certain external resources, who together conduct due diligence to understand the relationships among the prospective portfolio company's business plan, operations and financial performance. Our LMM due diligence review includes some or all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• site visits with management and key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detailed review of historical and projected financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• operational reviews and analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interviews with customers and suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detailed evaluation of company management, including background checks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review of material contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in-depth industry, market and strategy analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory compliance analysis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• review by legal, environmental or other consultants, if applicable.

Due diligence on a proposed Private Loan or Middle Market investment is generally performed on materials and information obtained from certain external resources and assessed internally by a minimum of three of our investment professionals, who work to understand the relationships among the prospective portfolio company's business plan, operations and financial performance using the accumulated due diligence information. Our typical Private Loan and Middle Market due diligence review includes some or all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detailed review of historical and projected financial statements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• site visits or other discussions with management and key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in-depth industry, market, operational and strategy analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory compliance analysis; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detailed review of the company's management team and their capabilities.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

During the due diligence process, significant attention is given to sensitivity analyses and how the company might be expected to perform given downside, base-case and upside scenarios. In certain cases, we may decide not to make an investment based on the results of the diligence process.

***Document and Close***

Upon completion of a satisfactory due diligence review of a proposed LMM portfolio investment, the investment team presents the findings and a recommendation to our investment committee. The presentation contains information which can include, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company history and overview;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transaction overview, history and rationale, including an analysis of transaction strengths and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• analysis of key customers and suppliers and key contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a working capital analysis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an analysis of the company's business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a management and key equity investor background check and assessment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• third-party accounting, legal, environmental or other due diligence findings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment structure and expected returns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anticipated sources of repayment and potential exit strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pro forma capitalization and ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an analysis of historical financial results and key financial ratios;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sensitivities to management's financial projections;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory compliance analysis findings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• detailed reconciliations of historical to pro forma results.

Upon completion of a satisfactory due diligence review of a proposed Private Loan or Middle Market portfolio investment, the investment team presents the findings and a recommendation to our investment committee. The presentation contains information which can include, but is not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• company history and overview;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transaction overview, history and rationale, including an analysis of transaction strengths and risks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• analysis of key customers and suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an analysis of the company's business strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment structure and expected returns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anticipated sources of repayment and potential exit strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pro forma capitalization and ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• regulatory compliance analysis findings; and

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an analysis of historical financial results and key financial ratios.

If any adjustments to the transaction terms or structures are proposed by the investment committee, such changes are made and applicable analyses are updated prior to approval of the transaction. Approval for the transaction must be made by the affirmative vote from a majority of the members of the investment committee, with the committee member managing the transaction, if any, abstaining from the vote. Upon receipt of transaction approval, the investment team will re-confirm regulatory compliance, process and finalize all required legal documents, and fund the investment.

***Post-Investment***

We continuously monitor the status and progress of the portfolio companies. We generally offer managerial assistance to our portfolio companies, giving them access to our investment experience, direct industry expertise and contacts. The same investment team that was involved in the investment process will continue its involvement in the portfolio company post-investment. This provides for continuity of knowledge and allows the investment team to maintain a strong business relationship with key management of our portfolio companies for post-investment assistance and monitoring purposes.

As part of the monitoring process of LMM portfolio investments, the investment team will analyze monthly and quarterly financial statements versus the previous periods and year, review financial projections, meet and discuss issues or opportunities with management, attend board meetings and review all compliance certificates and covenants. While we maintain limited involvement in the ordinary course operations of our LMM portfolio companies, we maintain a higher level of involvement in non-ordinary course financing or strategic activities and any non-performing scenarios.

As part of the monitoring process of our Private Loan and Middle Market portfolio investments, the investment team will analyze monthly and quarterly financial statements versus the previous periods and year, review financial projections and review all compliance certificates and covenants. Depending upon the nature of our Private Loan portfolio investments, our investment team may also attend board meetings, and meet and discuss issues or opportunities with the portfolio company's management team or private equity owners, however, due to the larger size and nature of our "lender only" relationship with these Private Loan and Middle Market companies in comparison to our LMM portfolio companies, it is not necessary or practical to have as much direct management interface.

We utilize an internally developed investment rating system to rate the performance of each LMM, Private Loan and Middle Market portfolio company and to monitor our expected level of returns on each of our LMM, Private Loan and Middle Market investments in relation to our expectations for the portfolio company. The investment rating system takes into consideration various factors, including, but not limited to, each investment's expected level of returns, the collectability of our debt investments and the ability to receive a return of the invested capital in our equity investments, comparisons to competitors and other industry participants, the portfolio company's future outlook and other factors that are deemed to be significant to the portfolio company.

***Exit Strategies/Refinancing***

While we generally exit most investments through the refinancing or repayment of our debt and redemption or sale of our equity positions, we typically assist our LMM portfolio companies in developing and planning exit opportunities, including any sale or merger of our portfolio companies. We may also assist in the structure, timing, execution and transition of the exit strategy. The refinancing or repayment of Private Loan investments and Middle Market debt investments typically do not require our assistance due to the additional resources available to these larger Private Loan and Middle Market companies.

**DETERMINATION OF NET ASSET VALUE AND INVESTMENT PORTFOLIO VALUATION PROCESS**

We determine the net asset value ("NAV") per share of our common stock on a quarterly basis. The NAV per share is equal to our total assets minus total liabilities divided by the total number of shares of common stock outstanding.

We are required to report our investments at fair value. As a result, the most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our Investment Portfolio and the related amounts of unrealized appreciation and depreciation. We follow the provisions of the Financial Accounting Standards Board Accounting Standards Codification ("ASC") 820, *Fair Value Measurements and Disclosures* ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires us to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.

We determine in good faith the fair value of our Investment Portfolio pursuant to a valuation policy in accordance with ASC 820 and a valuation process approved by our Board of Directors and in accordance with the 1940 Act. Our valuation policies and processes are intended to provide a consistent basis for determining the fair value of our Investment Portfolio. See *Note B.1. — Valuation of the Investment Portfolio* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K for a detailed discussion of our Investment Portfolio valuation process and procedures.

Due to the inherent uncertainty in the valuation process, our determination of fair value for our Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation.

The 1940 Act requires valuation of a portfolio security at "market value" if market quotations for the security are "readily available." Portfolio securities for which market quotations are not readily available must be valued at fair value as determined in good faith by the board of directors. In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which permits a BDC's board of directors to designate its executive officers or investment adviser as a valuation designee to determine the fair value for its investment portfolio, subject to the active oversight of the board.

Our Board of Directors adopted policies and procedures pursuant to Rule 2a-5 (the "Valuation Procedures") and designated a group of our executive officers to serve as the Board's valuation designee thereunder (the "Valuation Committee") effective April 1, 2021. Pursuant to the Valuation Procedures, we undertake a multi-step process each quarter in connection with determining the fair value of our investments.

The following outlines our valuation process as established under the Valuation Procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our quarterly process begins with an initial valuation of each portfolio investment performed by the valuation team consisting of several professionals who apply the appropriate valuation methodology depending on the type of investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each valuation model is then reviewed by the investment team responsible for monitoring the portfolio investment for accuracy, with any recommended changes reviewed by the valuation team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Updated valuation conclusions are then reviewed by and discussed with the Valuation Committee at quarterly valuation meetings. Valuation meetings are generally attended by the Valuation Committee, the valuation team, members of the investment team responsible for each investment and members of the compliance team. Valuation models and valuation conclusions are adjusted as necessary following such meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A nationally recognized independent financial advisory services firm analyzes and provides observations, recommendations and an assurance certification regarding the determinations of the fair value for the majority of our portfolio companies on a rotational basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• After incorporating commentary by the Valuation Committee and review of recommendations provided by the independent financial advisory services firm, valuation results are finalized and approved by the Valuation Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Directors oversees the process through its Audit Committee in accordance with Rule 2a-5 pursuant to the Valuation Procedures.

Determination of fair value involves subjective judgments and estimates. The notes to our consolidated financial statements refer to the uncertainty with respect to the possible effect of such valuations, and any change in such valuations, on our financial results and financial condition.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**COMPETITION**

We compete for investments with a number of investment funds (including private equity funds, mezzanine funds, BDCs, and SBICs), as well as traditional financial services companies such as commercial banks and other sources of financing. Many of the entities that compete with us are larger and have more resources available to them. We believe we are able to be competitive with these entities primarily on the basis of our focus toward the underserved LMM, the experience and contacts of our management team, our responsive and efficient investment analysis and decision-making processes, our comprehensive suite of customized financing solutions and the investment terms we offer.

We believe that some of our competitors make senior secured loans, junior secured loans and subordinated debt investments with interest rates and returns that are comparable to or lower than the rates and returns that we target. Therefore, we do not seek to compete primarily on the interest rates and returns that we offer to potential portfolio companies. For additional information concerning the competitive risks we face, see *Item 1A. Risk Factors — Risks Related to Our Business and Structure — We face increasing competition for investment opportunities.*

**HUMAN CAPITAL**

Our employees are vital to our success as a principal investment firm. As a human-capital intensive business, the long-term success of our company depends on our people. We strive to attract, develop and retain our employees by offering unique employment opportunities, superior advancement and promotion opportunities, attractive compensation and benefit structures and a close-knit culture. The departure of our key investment and other personnel could cause our operating results to suffer.

Our LMM business segment depends heavily on the business owners and management teams of our portfolio companies and their respective employees, contractors and service providers. In our investment process for LMM portfolio investments, the analysis of these individuals is a critical part of our overall investment underwriting process and as a result we carefully review the qualifications and experience of the portfolio company's business owners and management team and their employment practices. We strive to partner with business owners and management teams whose business practices reflect our core values.

We strive to recruit talented and driven individuals who share our values. We have competitive programs dedicated to attracting and retaining new talent and enhancing the skills of our employees. Our recruiting efforts utilize strong relationships with a variety of sources from which we recruit. Among other opportunities, we offer selected students investment analyst internships, which are expected to lead to permanent roles for high performing and high potential interns. Through our internship program, individuals who want to become investment analysts have the opportunity to see the full investment process from origination to closing, as well as post-closing portfolio management activities. We routinely recruit from within, promoting current employees who have shown the technical ability, attitude, interest and the initiative to take on greater responsibility.

We have designed a compensation structure, including an array of benefit plans and programs, that we believe is attractive to our current and prospective employees. We also offer formal and informal training and mentorship programs that provide employees with access to senior level executives. Through our annual goal setting and performance review processes, our employees are annually evaluated by supervisors and our senior management team to ensure employees continue to develop and advance as expected. We are committed to having a diverse workforce, and an inclusive work environment is a natural extension of our culture. We also maintain a Women's Initiative that provides employees with opportunities to network internally at Main Street and externally with other women in the financial services industry. Our employees have access to several programs designed to enable our employees to balance work, family and family-related situations including flexible working arrangements and parental leave for birth and adoption placement. We are committed to creating and maintaining an atmosphere where all employees feel welcomed, valued, respected and heard so that they feel motivated and encouraged to contribute fully to their careers, our company and our communities.

We seek to maintain a close-knit culture, which we believe is an important factor in employee retention, which is reinforced by our Community Building Committee. Our Community Building Committee, which is composed of a substantial cross section of employees across our organization, develops programs and initiatives that promote an open and inclusive atmosphere and encourage employee outreach with our community, in each case based upon feedback received from our employees. Initiatives generated by our Community Building Committee include employee well-being and engagement activities along with volunteer and donation opportunities with local charitable organizations. We encourage

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

you to visit our website for more information about charitable organizations receiving our ongoing support. Nothing on our website, however, shall be deemed incorporated by reference into this Annual Report on Form 10-K.

We monitor and evaluate various turnover and attrition metrics throughout our management team. Our annualized voluntary turnover is relatively low, a record which we attribute to our strong corporate culture, commitment to career development and attractive compensation and benefit programs. For additional information concerning the competitive risks we face, see *Item 1A. Risk Factors — Risks Related to Our Business and Structure — Our success depends on attracting and retaining qualified personnel in a competitive environment.*

As of December 31, 2022, we had 91 employees, 53 of whom we characterize as investment and portfolio management professionals, and the others include operations professionals and administrative staff. None of our employees are represented by a collective bargaining agreement. As necessary, we will hire additional investment professionals and administrative personnel. All but two of our employees are located in our Houston, Texas office.

**REGULATION**

***Regulation as a Business Development Company***

We have elected to be regulated as a BDC under the 1940 Act. The 1940 Act contains prohibitions and restrictions relating to transactions between BDCs and their affiliates, principal underwriters and affiliates of those affiliates or underwriters. The 1940 Act requires that a majority of the members of the board of directors of a BDC be persons other than "interested persons," as that term is defined in the 1940 Act. In addition, the 1940 Act provides that we may not change the nature of our business so as to cease to be, or to withdraw our election as, a BDC unless approved by a majority of our outstanding voting securities.

The 1940 Act defines "a majority of the outstanding voting securities" as the lesser of (i) 67% or more of the voting securities present at a meeting if the holders of more than 50% of our outstanding voting securities are present or represented by proxy or (ii) more than 50% of our outstanding voting securities.

*Qualifying Assets*

Under the 1940 Act, a BDC may not acquire any asset other than assets of the type listed in Section 55(a) of the 1940 Act, which are referred to as qualifying assets, unless, at the time the acquisition is made, qualifying assets represent at least 70% of the company's total assets. The principal categories of qualifying assets relevant to our business are any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Securities purchased in transactions not involving any public offering from the issuer of such securities, which issuer (subject to certain limited exceptions) is an eligible portfolio company (as defined below), or from any person who is, or has been during the preceding 13 months, an affiliated person of an eligible portfolio company, or from any other person, subject to such rules as may be prescribed by the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Securities of any eligible portfolio company that we control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Securities purchased in a private transaction from a U.S. issuer that is not an investment company or from an affiliated person of the issuer, or in transactions incident thereto, if the issuer is in bankruptcy and subject to reorganization or if the issuer, immediately prior to the purchase of its securities was unable to meet its obligations as they came due without material assistance other than conventional lending or financing arrangements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Securities of an eligible portfolio company purchased from any person in a private transaction if there is no ready market for such securities and we already own 60% of the outstanding equity of the eligible portfolio company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Securities received in exchange for or distributed on or with respect to securities described in (1) through (4) above, or pursuant to the exercise of warrants or rights relating to such securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

In addition, a BDC must have been organized and have its principal place of business in the United States and must be operated for the purpose of making investments in the types of securities described in (1), (2) or (3) above.

An eligible portfolio company is defined in the 1940 Act as any issuer which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is organized under the laws of, and has its principal place of business in, the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)is not an investment company (other than a small business investment company wholly-owned by the BDC) or a company that would be an investment company but for certain exclusions under the 1940 Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)satisfies any of the following:

&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)does not have any class of securities that is traded on a national securities exchange or has a class of securities listed on a national securities exchange but has an aggregate market value of outstanding voting and non-voting common equity of less than $250 million;

&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)is controlled by a BDC or a group of companies including a BDC and the BDC has an affiliated person who is a director of the eligible portfolio company; or

&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)is a small and solvent company having total assets of not more than $4 million and capital and surplus of not less than $2 million.

*Managerial Assistance to Portfolio Companies*

As noted above, a BDC must be operated for the purpose of making investments in the type of securities described in (1), (2) or (3) above under the heading entitled "— Qualifying Assets." In addition, BDCs must generally offer to make available to such issuer of the securities (other than small and solvent companies described above) significant managerial assistance; except that, where we purchase such securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company. However, if a BDC purchases securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such significant managerial assistance on behalf of all investors in the group.

*Temporary Investments*

Pending investment in "qualifying assets," as described above, our investments may consist of cash, cash equivalents, U.S. government securities and high-quality debt securities maturing in one year or less from time of investment therein, so that 70% of our assets are qualifying assets.

*Senior Securities*

Prior to 2018 legislation that modified the asset coverage requirements of the 1940 Act, we were permitted, as a BDC, to issue senior securities only in amounts such that our asset coverage, as defined in the 1940 Act, equals at least 200% of all debt and/or senior stock immediately after each such issuance. However, 2018 legislation modified the 1940 Act by allowing a BDC to increase the maximum amount of leverage it may incur from an asset coverage ratio, or BDC asset coverage ratio, of 200% to an asset coverage ratio of 150%, if certain requirements are met. In May 2022, our stockholders approved the application of the reduced BDC asset coverage ratio. As a result, the BDC asset coverage ratio applicable to us decreased from 200% to 150% effective May 3, 2022.

We have received exemptive relief from the SEC to permit us to exclude the SBA-guaranteed debentures of the Funds from our 150% asset coverage test under the 1940 Act. As such, our ratio of total consolidated assets to outstanding indebtedness may be less than 150%. This provides us with increased investment flexibility but also increases our risks related to leverage.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

In addition, while any senior securities remain outstanding (other than senior securities representing indebtedness issued in consideration of a privately arranged loan which is not intended to be publicly distributed), we must generally include provisions in the documents governing new senior securities to prohibit any cash distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage with such borrowings not constituting senior securities for purposes of the asset coverage ratio requirements of the 1940 Act. A loan is presumed to be for temporary purposes if it is repaid within sixty days and not extended or renewed. For a discussion of the risks associated with leverage, see *Item 1A. Risk Factors — Risks Related to Leverage,* including, without limitation, *— Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.*

*Common Stock*

We are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, sell our common stock, warrants, options or rights to acquire our common stock, at a price below the current NAV of the common stock if our Board of Directors determines that such sale is in our best interests and that of our stockholders, and our stockholders approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price which, in the determination of our Board of Directors, closely approximates the market value of such securities (less any distributing commission or discount). We did not seek stockholder authorization to sell shares of our common stock below the then current NAV per share of our common stock at our 2022 Annual Meeting of Stockholders, and have not sought such stockholder authorization since 2012, because our common stock price had been trading significantly above the NAV per share of our common stock since 2011. Our stockholders have previously approved a proposal that authorizes us to issue securities to subscribe to, convert to, or purchase shares of our common stock in one or more offerings. We may also make rights offerings to our stockholders at prices per share less than the NAV per share, subject to applicable requirements of the 1940 Act. See *Item 1A. Risk Factors — Risks Related to our Securities — Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.*

*Code of Ethics*

We have adopted a code of ethics pursuant to Rule 17j-1 under the 1940 Act that establishes procedures for personal investments and restricts certain personal securities transactions. Personnel subject to the code may invest in securities for their personal investment accounts, including securities that may be purchased or held by us, so long as such investments are made in accordance with the code's requirements. The code of ethics is available on the EDGAR Database on the SEC's website at <u>http://www.sec.gov</u>.

*Proxy Voting Policies and Procedures*

We vote proxies relating to our portfolio securities in a manner in which we believe is consistent with the best interest of our stockholders. We review on a case-by-case basis each proposal submitted to a stockholder vote to determine its impact on the portfolio securities held by us. Although we generally vote against proposals that we expect would have a negative impact on our portfolio securities, we may vote for such a proposal if there exists compelling long-term reasons to do so.

Our proxy voting decisions are made by the investment team which is responsible for monitoring each of our investments. To ensure that our vote is not the product of a conflict of interest, we require that anyone involved in the decision-making process discloses to our chief compliance officer any potential conflict regarding a proxy vote of which he or she is aware.

Stockholders may obtain information, without charge, regarding how we voted proxies with respect to our portfolio securities by making a written request for proxy voting information to: Chief Compliance Officer, 1300 Post Oak Boulevard, 8<sup>th</sup> Floor, Houston, Texas 77056.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

*Other 1940 Act Regulations*

We are also prohibited under the 1940 Act from knowingly participating in certain transactions with our affiliates without the prior approval of our Board of Directors who are not interested persons and, in some cases, prior approval by the SEC.

We are required to provide and maintain a bond issued by a reputable fidelity insurance company to protect us against larceny and embezzlement. Furthermore, as a BDC, we are prohibited from protecting any director or officer against any liability to us or our stockholders arising from willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of such person's office.

We are required to adopt and implement written policies and procedures reasonably designed to prevent violation of the federal securities laws, review these policies and procedures no less frequently than annually for their adequacy and the effectiveness of their implementation, and to designate a chief compliance officer to be responsible for administering the policies and procedures.

We may be periodically examined by the SEC for compliance with the 1940 Act.

***Small Business Investment Company Regulations***

Each of the Funds is licensed by the SBA to operate as a SBIC under Section 301(c) of the Small Business Investment Act of 1958. MSMF obtained its SBIC license in 2002 and MSC III obtained its license in 2016.

SBICs are designed to stimulate the flow of private capital to eligible small businesses. Under SBIC regulations, SBICs may make loans to eligible small businesses, invest in the equity securities of such businesses and provide them with consulting and advisory services. Each of the Funds has typically invested in secured debt, acquired warrants and/or made equity investments in qualifying small businesses.

The Funds are subject to regulation and oversight by the SBA, including requirements with respect to reporting financial information, such as the extent of capital impairment if applicable, on a regular basis and annual examinations conducted by the SBA. The SBA, as a creditor, will have a superior claim to the Funds' assets over our securities holders in the event the Funds are liquidated or the SBA exercises its remedies under the SBA-guaranteed debentures issued by the Funds upon an event of default.

Under present SBIC regulations, eligible small businesses generally include businesses that (together with their affiliates) have a tangible net worth not exceeding $19.5 million or have average annual net income after U.S. federal income taxes not exceeding $6.5 million (average net income to be computed without benefit of any carryover loss) for the two most recent fiscal years. In addition, an SBIC must devote 25% of its investment activity to "smaller" enterprises as defined by the SBA. A smaller enterprise generally includes businesses that have a tangible net worth not exceeding $6 million and have average annual net income after U.S. federal income taxes not exceeding $2 million (average net income to be computed without benefit of any net carryover loss) for the two most recent fiscal years. SBIC regulations also provide alternative size standard criteria to determine eligibility for designation as an eligible small business or smaller enterprise, which criteria depend on the primary industry in which the business is engaged and are based on such factors as the number of employees and gross revenue. However, once an SBIC has invested in a company, it generally may continue to make follow-on investments in the company, regardless of the size of the portfolio company at the time of the follow-on investment, up to the time of the portfolio company's initial public offering.

The SBA prohibits an SBIC from providing funds to small businesses for certain purposes, such as relending and investment outside the United States, to businesses engaged in certain prohibited industries, and to certain "passive" (non-operating) companies. In addition, without prior SBA approval, an SBIC may not invest an amount equal to more than 30% of the SBIC's regulatory capital, as defined by the SBA, in any one portfolio company and its affiliates.

The SBA places certain limitations on the financing terms of investments by SBICs in portfolio companies (such as limiting the permissible interest rate on debt securities held by an SBIC in a portfolio company). Included in such limitations are SBIC regulations which allow an SBIC to exercise control over a small business for a period of seven years from the date on which the SBIC initially acquires its control position. This control period may be extended for an additional period of time with the SBA's prior written approval.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

The SBA restricts the ability of an SBIC to lend money to any of its officers, directors and employees or to invest in affiliates thereof. The SBA also prohibits, without prior SBA approval, a "change of control" of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10% or more of a class of equity of a licensed SBIC. A "change of control" is any event which would result in the transfer of the power, direct or indirect, to direct the management and policies of an SBIC, whether through ownership, contractual arrangements or otherwise.

The SBIC licenses allow the Funds to incur leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment and certain approvals by the SBA and customary procedures. SBA-guaranteed debentures carry long-term fixed rates that are generally lower than rates on comparable bank and other debt. Under applicable regulations, an SBIC may generally have outstanding debentures guaranteed by the SBA in amounts up to twice the amount of the privately raised funds of the SBIC. Debentures guaranteed by the SBA have a maturity of ten years, require semiannual payments of interest, do not require any principal payments prior to maturity, and are not subject to prepayment penalties. As of December 31, 2022, we, through the Funds, had $350.0 million of outstanding SBA-guaranteed debentures, which had an annual weighted-average interest rate of 2.9%.

SBICs must invest idle funds that are not being used to make loans in investments permitted under SBIC regulations in the following limited types of securities: (i) direct obligations of, or obligations guaranteed as to principal and interest by, the United States government, which mature within 15 months from the date of the investment; (ii) repurchase agreements with federally insured institutions with a maturity of seven days or less (and the securities underlying the repurchase obligations must be direct obligations of or guaranteed by the federal government); (iii) certificates of deposit with a maturity of one year or less, issued by a federally insured institution; (iv) a deposit account in a federally insured institution that is subject to a withdrawal restriction of one year or less; (v) a checking account in a federally insured institution; or (vi) a reasonable petty cash fund.

SBICs are periodically examined and audited by the SBA's staff to determine their compliance with SBIC regulations and are periodically required to file certain financial information and other documents with the SBA.

Neither the SBA nor the U.S. government or any of its agencies or officers has approved any ownership interest to be issued by us or any obligation that we or any of our subsidiaries may incur.

***Securities Exchange Act of 1934 and Sarbanes-Oxley Act Compliance***

We are subject to the reporting and disclosure requirements of the Securities Exchange Act of 1934 (the "Exchange Act"), including the filing of quarterly, annual and current reports, proxy statements and other required items. In addition, we are subject to the Sarbanes-Oxley Act of 2002, which imposes a wide variety of regulatory requirements on publicly-held companies and their insiders. For example:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Rule 13a-14 of the Exchange Act, our Chief Executive Officer and Chief Financial Officer are required to certify the accuracy of the consolidated financial statements contained in our periodic reports;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Item 307 of Regulation S-K, our periodic reports are required to disclose our conclusions about the effectiveness of our disclosure controls and procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Rule 13a-15 of the Exchange Act, our management is required to prepare a report regarding its assessment of our internal control over financial reporting, and our independent registered public accounting firm separately audits our internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Item 308 of Regulation S-K and Rule 13a-15 of the Exchange Act, our periodic reports must disclose whether there were significant changes in our internal control over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

***The New York Stock Exchange Corporate Governance Regulations***

The New York Stock Exchange ("NYSE") has adopted corporate governance regulations that listed companies must comply with. We believe we are in compliance with such corporate governance listing standards. We intend to monitor our compliance with all future listing standards and to take all necessary actions to ensure that we stay in compliance.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***Investment Adviser Regulations***

The External Investment Manager, which is wholly-owned by us, is subject to regulation under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Advisers Act establishes, among other things, recordkeeping and reporting requirements, disclosure requirements, limitations on transactions between the adviser's account and an advisory client's account, limitations on transactions between the accounts of advisory clients, and general anti-fraud prohibitions. The External Investment Manager may be examined by the SEC from time to time for compliance with the Advisers Act.

***Taxation as a Regulated Investment Company***

MSCC has elected to be treated for U.S. federal income tax purposes as a RIC under Subchapter M of the Code. MSCC's taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any income that we distribute to our stockholders as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements (as described below). In addition, in order to obtain RIC tax treatment, we must distribute to our stockholders, for each taxable year, at least 90% of our "investment company taxable income," which is generally our net ordinary taxable income plus the excess of realized net short-term capital gains over realized net long-term capital losses, and 90% of our tax-exempt income (the "Annual Distribution Requirement"). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to 12 months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.

For any taxable year in which we qualify as a RIC and satisfy the Annual Distribution Requirement, we will not be subject to U.S. federal income tax on the portion of our income or capital gains we distribute (or are deemed to distribute) to stockholders. We will be subject to U.S. federal income tax at the regular corporate rates on any income or capital gains not distributed (or deemed distributed) to our stockholders.

We are subject to a 4% non-deductible U.S. federal excise tax on certain undistributed income unless we distribute in a timely manner an amount at least equal to the sum of (1) 98% of our net ordinary taxable income for each calendar year, (2) 98.2% of our capital gain net income for the one-year period ending December 31 in that calendar year and (3) any taxable income recognized, but not distributed, in preceding years on which we paid no U.S. federal income tax (the "Excise Tax Avoidance Requirement"). Dividends declared and paid by us in a year will generally differ from taxable income for that year as such dividends may include the distribution of current year taxable income, exclude amounts carried over into the following year, and include the distribution of prior year taxable income carried over into and distributed in the current year. For amounts we carry over into the following year, we will be required to pay the 4% U.S. federal excise tax on the excess of 98% of our annual investment company taxable income and 98.2% of our capital gain net income over our distributions for the year.

In order to qualify as a RIC for U.S. federal income tax purposes, we must, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continue to qualify as a BDC under the 1940 Act at all times during each taxable year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• derive in each taxable year at least 90% of our gross income from dividends, interest, payments with respect to certain securities, loans, gains from the sale of stock or other securities, net income from certain "qualified publicly traded partnerships," or other income derived with respect to our business of investing in such stock or securities (the "90% Income Test"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• diversify our holdings so that at the end of each quarter of the taxable year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least 50% of the value of our assets consists of cash, cash equivalents, U.S. government securities, securities of other RICs, and other securities if such other securities of any one issuer do not represent more than 5% of the value of our assets or more than 10% of the outstanding voting securities of the issuer; and

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no more than 25% of the value of our assets is invested in the securities, other than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of certain "qualified publicly traded partnerships" (collectively, the "Diversification Tests").

In order to comply with the 90% Income Test, we formed the Taxable Subsidiaries as wholly-owned taxable subsidiaries for the primary purpose of permitting us to own equity interests in portfolio companies which are "pass-through" entities for tax purposes. Absent the taxable status of the Taxable Subsidiaries, a portion of the gross income from such portfolio companies would flow directly to us for purposes of the 90% Income Test. To the extent such income did not consist of income derived from securities, such as dividends and interest, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant U.S. federal income taxes. The Taxable Subsidiaries are consolidated with Main Street for generally accepted accounting principles in the United States of America ("U.S. GAAP") purposes and are included in our consolidated financial statements, and the portfolio investments held by the Taxable Subsidiaries are included in our consolidated financial statements. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, as a result of their ownership of the portfolio investments. The income tax expense, or benefit, if any, and any related tax assets and liabilities, are reflected in our consolidated financial statements.

The External Investment Manager is accounted for as a portfolio investment for U.S. GAAP purposes and is an indirect wholly-owned subsidiary of MSCC, owned through a Taxable Subsidiary. The External Investment Manager is owned by a Taxable Subsidiary in order to comply with the 90% Income Test, since the External Investment Manager's income would likely not consist of income derived from securities, such as dividends and interest, and as result, it could jeopardize our ability to qualify as a RIC and, therefore, cause us to incur significant U.S. federal income taxes. As a result of its ownership by a Taxable Subsidiary, the External Investment Manager is a disregarded entity for tax purposes. The External Investment Manager has also entered into a tax sharing agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for its stand-alone financial reporting purposes the External Investment Manager is treated as if it is taxed at normal corporate tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the External Investment Manager are reflected in the External Investment Manager's separate financial statements.

We may be required to recognize taxable income in circumstances in which we do not receive cash. For example, if we hold debt obligations that are treated under applicable tax rules as having original issue discount (such as debt instruments issued with warrants and debt securities invested in at a discount to par), we must include in income each year a portion of the original issue discount that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income other amounts that we have not yet received in cash such as PIK interest, cumulative dividends or amounts that are received in non-cash compensation such as warrants or stock. Because any original issue discount or other amounts accrued will be included in our investment company taxable income for the year of accrual, we may be required to make a distribution to our stockholders in order to satisfy the Annual Distribution Requirement, even though we will not have received any corresponding cash amount.

Although we do not presently expect to do so, we are authorized to borrow funds and to sell assets in order to satisfy distribution requirements. However, under the 1940 Act, we are not permitted to make distributions to our stockholders in certain circumstances while our debt obligations and other senior securities are outstanding unless certain "asset coverage" tests are met. See *Regulation — Regulation as a Business Development Company — Senior Securities*. Moreover, our ability to dispose of assets to meet our distribution requirements may be limited by (1) the illiquid nature of our portfolio and/or (2) other requirements relating to our status as a RIC, including the Diversification Tests. If we dispose of assets in order to meet the Annual Distribution Requirement or the Excise Tax Avoidance Requirement, we may make such dispositions at times that, from an investment standpoint, are not advantageous.

We may distribute taxable dividends that are payable in part in our stock. Under certain applicable provisions of the Code and the U.S. Department of the Treasury ("Treasury") regulations, distributions payable by us in cash or in shares of stock (at the stockholders' election) would satisfy the Annual Distribution Requirement. The Internal Revenue Service has issued guidance indicating that this rule will apply even where the total amount of cash that may be distributed is limited to no more than 20% of the total distribution. According to this guidance, if too many stockholders elect to receive their distributions in cash, each such stockholder would receive a pro rata share of the total cash to be distributed and would

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

receive the remainder of their distribution in shares of stock. Taxable stockholders receiving such dividends will be required to include the full amount of the dividend (whether received in cash, our stock, or a combination thereof) as (i) ordinary income (including any qualified dividend income that, in the case of a noncorporate stockholder, may be eligible for the same reduced maximum tax rate applicable to long-term capital gains to the extent such distribution is properly reported by us as qualified dividend income and such stockholder satisfies certain minimum holding period requirements with respect to our stock) or (ii) long-term capital gain (to the extent such distribution is properly reported as a capital gain dividend), to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.

***Failure to Qualify as a RIC***

If we fail to satisfy the 90% Income Test or the Diversification Tests for any taxable year, we may nevertheless continue to qualify as a RIC for such year if certain relief provisions are applicable (which may, among other things, require us to pay certain corporate-level U.S. federal taxes or to dispose of certain assets).

If we were unable to qualify for treatment as a RIC and the foregoing relief provisions are not applicable, we would be subject to tax on all of our taxable income at regular corporate rates. We would not be able to deduct distributions to stockholders, nor would they be required to be made. If we were subject to tax on all of our taxable income at regular corporate rates, then distributions we make after being subject to such tax would be taxable to our stockholders and, provided certain holding period and other requirements were met, could qualify for treatment as "qualified dividend income" eligible for the maximum 20% rate (plus a 3.8% Medicare surtax, if applicable) applicable to qualified dividends to the extent of our current and accumulated earnings and profits. Subject to certain limitations under the Code, corporate taxpayers would be eligible for a dividends-received deduction on distributions they receive. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the stockholder's tax basis, and any remaining distributions would be treated as a capital gain. To requalify as a RIC in a subsequent taxable year, we would be required to satisfy the RIC qualification requirements for that year and dispose of any earnings and profits from any year in which we failed to qualify as a RIC. Subject to a limited exception applicable to RICs that qualified as such under Subchapter M of the Code for at least one year prior to disqualification and that requalify as a RIC no later than the second year following the nonqualifying year, we could be subject to tax on any unrealized net built-in gains in the assets held by us during the period in which we failed to qualify as a RIC that are recognized within the subsequent five years, unless we made a special election to pay corporate-level U.S. federal income tax on such built-in gain at the time of our requalification as a RIC.

**Item 1A. *Risk Factors***

*Investing in our securities involves a number of significant risks. In addition to the other information contained in this Annual Report on Form 10-K, you should consider carefully the following information before making an investment in our securities. The risks set out below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us might also impair our operations and performance. If any of the following events occur, our business, financial condition and results of operations could be materially and adversely affected. In such case, our NAV, the trading price of our common stock and the value of our other securities could decline, and you may lose all or part of your investment.*

**SUMMARY OF RISK FACTORS**

The following is a summary of the principal risk factors associated with an investment in our securities. Further details regarding each risk included in the below summary list can be found further below.

**Risks Related to our Business and Structure**

&nbsp;&nbsp;&nbsp;&nbsp;• Because our Investment Portfolio is recorded at fair value, there is and will continue to be uncertainty as to the value of our portfolio investments.

&nbsp;&nbsp;&nbsp;&nbsp;• Our financial condition and results of operations depends on our ability to effectively manage and deploy capital.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to risks associated with the interest rate environment and changes in interest rates will affect our cost of capital, net investment income and the value of our investments.

&nbsp;&nbsp;&nbsp;&nbsp;• We face increasing competition for investment opportunities.

&nbsp;&nbsp;&nbsp;&nbsp;• We are dependent upon our key investment personnel for our future success.

&nbsp;&nbsp;&nbsp;&nbsp;• Our success depends on attracting and retaining qualified personnel in a competitive environment.

&nbsp;&nbsp;&nbsp;&nbsp;• Our business model depends to a significant extent upon strong referral relationships.

&nbsp;&nbsp;&nbsp;&nbsp;• Our Board of Directors may change our operating policies and strategies without prior notice or stockholder approval, the effects of which may be adverse.

**Risks Related to our Investments**

&nbsp;&nbsp;&nbsp;&nbsp;• The types of portfolio companies in which we invest involve significant risks and we could lose all or part of our investment.

&nbsp;&nbsp;&nbsp;&nbsp;• Economic recessions or downturns could impair our portfolio companies' performance and defaults by our portfolio companies will harm our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;• Rising credit spreads could affect the value of our investments, and rising interest rates make it more difficult for portfolio companies to make periodic payments on their loans.

&nbsp;&nbsp;&nbsp;&nbsp;• Inflation could adversely affect the business, results of operations and financial condition of our portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;• We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest.

&nbsp;&nbsp;&nbsp;&nbsp;• The lack of liquidity in our investments may adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;• We may not have the funds or ability to make additional investments in our portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;• There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.

&nbsp;&nbsp;&nbsp;&nbsp;• We generally will not control our portfolio companies.

&nbsp;&nbsp;&nbsp;&nbsp;• Defaults by our portfolio companies will harm our operating results.

&nbsp;&nbsp;&nbsp;&nbsp;• Any unrealized depreciation that we experience in our portfolio may be an indication of future realized losses, which could reduce our income and gains available for distribution.

&nbsp;&nbsp;&nbsp;&nbsp;• Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.

&nbsp;&nbsp;&nbsp;&nbsp;• The interest rates of some of our investments are priced using a spread over LIBOR, which will be phased out in the future.

&nbsp;&nbsp;&nbsp;&nbsp;• We may be subject to risks associated with "covenant-lite" loans.

&nbsp;&nbsp;&nbsp;&nbsp;• We may not realize gains from our equity investments.

**Risks Related to Leverage**

&nbsp;&nbsp;&nbsp;&nbsp;• Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.

&nbsp;&nbsp;&nbsp;&nbsp;• All of our assets are subject to security interests under our senior securities and if we default on our obligations under our senior securities, we may suffer adverse consequences, including foreclosure on our assets.

&nbsp;&nbsp;&nbsp;&nbsp;• We are subject to risks associated with any revolving credit facility that utilizes a Structured Subsidiary as our interests in any Structured Subsidiary are subordinated and we could be prevented from receiving cash on our equity interests from a Structured Subsidiary.

**Risks Related to our Investment Management Activities**

&nbsp;&nbsp;&nbsp;&nbsp;• Our executive officers and employees, through the External Investment Manager, may manage other investment funds that operate in the same or a related line of business as we do, and may invest in such funds, which may result in significant conflicts of interest.

&nbsp;&nbsp;&nbsp;&nbsp;• We, through the External Investment Manager, derive revenues from managing third-party funds pursuant to management agreements that may be terminated.

**Risks Related to BDCs**

&nbsp;&nbsp;&nbsp;&nbsp;• Failure to comply with applicable laws or regulations and changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.

&nbsp;&nbsp;&nbsp;&nbsp;• Operating under the constraints imposed on us as a BDC and RIC may hinder the achievement of our investment objectives.

**Risks Related to our Securities**

&nbsp;&nbsp;&nbsp;&nbsp;• Investing in our securities may involve a high degree of risk.

&nbsp;&nbsp;&nbsp;&nbsp;• Shares of closed-end investment companies, including BDCs, may trade at a discount to their NAV.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to pay distributions to our stockholders, our distributions may not grow over time, and a portion of distributions paid to our stockholders may be a return of capital.

**Risks Related to our SBIC Funds**

&nbsp;&nbsp;&nbsp;&nbsp;• We, through the Funds, issue debt securities guaranteed by the SBA and sold in the capital markets. As a result of its guarantee of the debt securities, the SBA has fixed dollar claims on the assets of the Funds that are superior to the claims of our securities holders.

**Federal Income Tax Risks**

&nbsp;&nbsp;&nbsp;&nbsp;• We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;• We may have difficulty paying the distributions required to maintain RIC tax treatment under the Code if we recognize income before or without receiving cash representing such income.

**General Risk Factors**

&nbsp;&nbsp;&nbsp;&nbsp;• Events outside of our control, including public health crises, supply chain disruptions and inflation, could negatively affect our portfolio companies and the results of our operations.

&nbsp;&nbsp;&nbsp;&nbsp;• We are currently operating in a period of capital markets disruption and economic uncertainty, and capital markets may experience periods of disruption and instability in the future.

&nbsp;&nbsp;&nbsp;&nbsp;• Government intervention in the credit markets could adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;• We are highly dependent on information systems and systems failures could significantly disrupt our business.

**RISKS RELATED TO OUR BUSINESS AND STRUCTURE**

***Because our Investment Portfolio is recorded at fair value, there is and will continue to be uncertainty as to the value of our portfolio investments.***

Under the 1940 Act, we are required to carry our portfolio investments at market value or, if there is no readily available market value, at fair value as determined by us pursuant to procedures established and overseen by our Board of Directors. Typically, there is not a public market for the securities of the privately held companies in which we invest through our LMM and Private Loan investment strategies. As a result, we value these securities quarterly at fair value based on inputs from management and a nationally recognized independent financial advisory services firm (on a rotational basis) pursuant to Valuation Procedures approved by our Board of Directors. In addition, the market for investments in companies that we invest through our Middle Market investment strategy is generally not a liquid market, and therefore, we primarily use a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs, pursuant to our Valuation Procedures. See *Note B.1. — Valuation of the Investment Portfolio* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K for a detailed discussion of our Investment Portfolio valuation process and procedures.

The determination of fair value and consequently, the amount of unrealized gains and losses in our portfolio, are to a certain degree, subjective and dependent on a valuation process approved by our Board of Directors. Certain factors that may be considered in determining the fair value of our investments include external events, such as private mergers, sales and acquisitions involving comparable companies. Because such valuations, and particularly valuations of securities in privately held companies, are inherently uncertain, may fluctuate over short periods of time and may be based on estimates, our determinations of fair value may differ materially from the values that would have been used if a ready market for these securities existed. Due to this uncertainty, our fair value determinations may cause our NAV on a given date to materially understate or overstate the value that we may ultimately realize on one or more of our investments. As a result, investors purchasing our securities based on an overstated NAV would pay a higher price than the value of our investments might warrant. Conversely, investors selling our securities during a period in which the NAV understates the value of our investments may receive a lower price for their securities than the value of our investments might warrant.

***Our financial condition and results of operations depends on our ability to effectively manage and deploy capital.***

Our ability to achieve our investment objective of maximizing our portfolio's total return by generating current income from our debt investments and current income and capital appreciation from our equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company,

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

depends on our ability to effectively manage and deploy capital, which depends, in turn, on our investment team's ability to identify, evaluate and monitor, and our ability to finance and invest in, companies that meet our investment criteria.

Accomplishing our investment objective on a cost-effective basis is largely a function of our investment team's handling of the investment process, its ability to provide competent, attentive and efficient services and our access to investments offering acceptable terms. In addition to monitoring the performance of our existing investments, members of our investment team are also called upon, from time to time, to provide managerial assistance to some of our portfolio companies. These demands on their time may distract them or slow the rate of investment.

Even if we are able to grow and build upon our investment operations, any failure to manage our growth effectively could have a material adverse effect on our business, financial condition, results of operations and prospects. The results of our operations will depend on many factors, including the availability of opportunities for investment, readily accessible short and long-term funding alternatives in the financial markets and economic conditions. Furthermore, if we cannot successfully operate our business or implement our investment policies and strategies as described herein, it could negatively impact our ability to pay dividends.

***We are subject to risks associated with the interest rate environment and changes in interest rates will affect our cost of capital, net investment income and the value of our investments.***

To the extent we borrow money or issue debt securities or preferred stock to make investments, our net investment income will depend, in part, upon the difference between the rate at which we borrow funds or pay interest or dividends on such debt securities or preferred stock and the rate at which we invest these funds. In addition, many of our debt investments and borrowings have floating interest rates that reset on a periodic basis, and many of our investments are subject to interest rate floors. As a result, a change in market interest rates could have a material adverse effect on our net investment income. In periods of rising interest rates, our cost of funds will increase because the interest rates on the amounts borrowed under our credit facilities are floating, and any new fixed rate debt may be issued a higher coupon rates, which could reduce our net investment income to the extent any debt investments have either fixed interest rates, or in periods when debt investments with floating interest rates are subject to an interest rate floor above then current levels. In periods of declining interest rates, our interest income and our net investment income could be reduced as the interest income earned on our floating rate debt investments declines and any new fixed rate debt may be issued at lower coupon rates. See further discussion and analysis at *Item 7A. Quantitative and Qualitative Disclosures about Market Risk*.

We can use interest rate risk management techniques in an effort to limit our exposure to interest rate fluctuations. Such techniques could include various interest rate hedging activities to the extent permitted by the 1940 Act and applicable commodities laws. These activities could limit our ability to participate in the benefits of lower interest rates with respect to the hedged borrowings. Adverse developments resulting from changes in interest rates or hedging transactions could have a material adverse effect on our business, financial condition and results of operations.

An increase in the market pricing of the spreads charged over index rates on floating rate investments could lead to a decline in the fair value of the debt securities we own, which would adversely affect our NAV. Also, an increase in interest rates available to investors could make an investment in our common stock less attractive if we are not able to increase our dividends, which could reduce the value of our common stock.

***We face increasing competition for investment opportunities.***

We compete for investments with other investment funds (including private equity funds, debt funds, mezzanine funds, collateralized loan obligation funds, or CLOs, BDCs and SBICs), as well as traditional financial services companies such as commercial banks and other sources of funding. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of capital and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than we have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer better pricing and more flexible structuring than we are able to do. We may lose investment opportunities if we do not match our competitors' pricing, terms and structure. If we are forced to match our competitors' pricing, terms and structure, we may not be able to achieve acceptable returns on our investments or may bear substantial risk of capital loss. A significant part of our competitive advantage stems from the fact that the market for investments in LMM companies is underserved by traditional commercial banks and other financing sources. A significant increase in the number and/or the size of our competitors in this target market could

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

force us to accept less attractive investment terms. Furthermore, many of our competitors are not subject to the regulatory restrictions that the 1940 Act imposes on us as a BDC.

***We are dependent upon our key investment personnel for our future success.***

We depend on the members of our investment team, particularly Dwayne L. Hyzak, David L. Magdol, Jesse E. Morris, Jaime Arreola, K. Colton Braud, III, Damian T. Burke, Samuel A. Cashiola, Diego Fernandez and Nicholas T. Meserve for the identification, review, final selection, structuring, closing and monitoring of our investments. These employees have significant investment expertise and relationships that we rely on to implement our business plan. Although we have entered into non-compete arrangements with all of our executive officers and other key employees, we cannot guarantee that any employees will remain employed with us. If we lose the services of the individuals mentioned above, we may not be able to operate our business as we expect, and our ability to compete could be harmed, which could cause our operating results to suffer.

***Our success depends on attracting and retaining qualified personnel in a competitive environment.***

Our growth will require that we retain new investment and administrative personnel in a competitive market. Our ability to attract and retain personnel with the requisite credentials, experience and skills depends on several factors including, but not limited to, our ability to offer competitive wages, benefits and professional growth opportunities. Many of the entities, including investment funds (such as private equity funds, debt funds and mezzanine funds) and traditional financial services companies, with which we compete for experienced personnel have greater resources than we have.

The competitive environment for qualified personnel may require us to take certain measures to ensure that we are able to attract and retain experienced personnel. Such measures may include increasing the attractiveness of our overall compensation packages, altering the structure of our compensation packages through the use of additional forms of compensation, or other steps. The inability to attract and retain experienced personnel would have a material adverse effect on our business.

***Our business model depends to a significant extent upon strong referral relationships.***

We expect that members of our management team will maintain their relationships with intermediaries, financial institutions, investment bankers, commercial bankers, financial advisors, attorneys, accountants, consultants and other individuals within our network, and we will rely to a significant extent upon these relationships to provide us with potential investment opportunities. If our management team fails to maintain its existing relationships or develop new relationships with sources of investment opportunities, we will not be able to grow our Investment Portfolio. In addition, individuals with whom members of our management team have relationships are not obligated to provide us with investment opportunities, and, therefore, there is no assurance that such relationships will generate investment opportunities for us.

***Our Board of Directors may change our operating policies and strategies without prior notice or stockholder approval, the effects of which may be adverse.***

Our Board of Directors has the authority to modify or waive our current operating policies, investment criteria and strategies without prior notice and without stockholder approval. We cannot predict the effect any changes to our current operating policies, investment criteria and strategies would have on our business, NAV, operating results and value of our stock. However, the effects might be adverse, which could negatively impact our ability to pay interest and principal payments to holders of our debt instruments and dividends to our stockholders and cause our investors to lose all or part of their investment in us.

***We are a non-diversified investment company within the meaning of the 1940 Act, and therefore we are not limited with respect to the proportion of our assets that may be invested in securities of a single issuer.***

We are classified as a non-diversified investment company within the meaning of the 1940 Act, which means that we are not limited by the 1940 Act with respect to the proportion of our assets that we may invest in securities of a single issuer. Under the 1940 Act, a "diversified" investment company is required to invest at least 75% of the value of its total assets in cash and cash items, government securities, securities of other investment companies and other securities limited in respect of any one issuer to an amount not greater than 5% of the value of the total assets of such company and no more than 10% of the outstanding voting securities of such issuer. As a non-diversified investment company, we are not subject to this requirement. To the extent that we assume large positions in the securities of a small number of issuers, our NAV

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market's assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond our RIC asset diversification requirements, we do not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies. See *Risk Factors — Federal Income Tax Risks — We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code.*

***We are subject to risks related to corporate social responsibility.***

Our business faces increasing public scrutiny related to environmental, social and governance ("ESG") activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as diversity and inclusion, environmental stewardship, support for local communities, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business.

**RISKS RELATED TO OUR INVESTMENTS**

***The types of portfolio companies in which we invest involve significant risks and we could lose all or part of our investment.***

Investing in the types of companies that comprise our portfolio companies exposes us to a number of significant risks. Among other things, these companies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may have limited financial resources and may be unable to meet their obligations under their debt instruments that we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing any guarantees from subsidiaries or affiliates of our portfolio companies that we may have obtained in connection with our investment, as well as a corresponding decrease in the value of the equity components of our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may have shorter operating histories, narrower product lines, smaller market shares and/or significant customer concentrations than larger businesses, which tend to render them more vulnerable to competitors' actions and market conditions, as well as general economic downturns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation, termination or significant under-performance of one or more of these persons could have a material adverse impact on our portfolio company and, in turn, on us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• generally have less publicly available information about their businesses, operations and financial condition. We are required to rely on the ability of our management team and investment professionals to obtain adequate information to evaluate the potential returns from investing in these companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and may lose all or part of our investment.

In addition certain of our officers and directors may serve as directors on the boards of our portfolio companies. To the extent that litigation arises out of our investments in these companies, our officers and directors may be named as defendants in such litigation, which could result in an expenditure of funds (through our indemnification of such officers and directors) and the diversion of management time and resources.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***Economic recessions or downturns could impair our portfolio companies' performance and defaults by our portfolio companies will harm our operating results.***

Many of our portfolio companies are susceptible to economic slowdowns or recessions and could be unable to repay our loans during these periods. Therefore, the number of non-performing assets are likely to increase and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions could decrease the value of collateral securing any of our loans and the value of any equity investments. A severe recession could further decrease the value of such collateral and result in losses of value in our portfolio and a decrease in our revenues, net income, assets and net worth. Economic slowdowns or recessions could lead to financial losses in our portfolio and a decrease in revenues, net income and assets. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm our operating results.

Any deterioration of general economic conditions could lead to significant declines in corporate earnings or loan performance, and the ability of corporate borrowers to service their debt, any of which could trigger a period of global economic slowdown, and have an adverse impact on our performance and financial results, and the value and the liquidity of our investments. In an economic downturn, we could have non-performing assets or an increase in non-performing assets, and we would anticipate that the value of our portfolio would decrease during these periods. Failure to satisfy financial or operating covenants imposed by lenders, including us, to a portfolio company could lead to defaults and, potentially, acceleration of payments on such loans and foreclosure on the assets representing collateral for the portfolio company's obligations. Cross default provisions under other agreements could be triggered and thus limit the portfolio company's ability to satisfy its obligations under any debt that we hold and affect the value of any equity securities we own. We would expect to incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a portfolio company following or in anticipation of a default.

***Rising credit spreads could affect the value of our investments, and rising interest rates make it more difficult for portfolio companies to make periodic payments on their loans.***

Some of our portfolio investments are debt securities that bear interest at variable rates and may be negatively affected by changes in market interest rates. Rising interest rates make it more difficult for borrowers to repay debt, which could increase the risk of payment defaults and cause the portfolio companies to defer or cancel needed investment. Any failure of one or more portfolio companies to repay or refinance its debt at or prior to maturity or the inability of one or more portfolio companies to make ongoing payments following an increase in contractual interest rates could have a material adverse effect on our business, financial condition, results of operations and cash flows. The value of our securities could also be reduced from an increase in market credit spreads as rates available to investors could make an investment in our securities less attractive than alternative investments.

Conversely, decreases in market interest rates could negatively impact the interest income from our variable rate debt investments while the interest we pay on our fixed rate debt securities does not change. A decrease in market interest rates may also have an adverse impact on our returns by requiring us to accept lower yields on our debt investments and by increasing the risk that our portfolio companies will prepay our debt investments, resulting in the need to redeploy capital at potentially lower rates.

***Inflation could adversely affect the business, results of operations and financial condition of our portfolio companies.***

Certain of our portfolio companies are in industries that could be impacted by inflation. If such portfolio companies are unable to pass any increases in their costs of operations along to their customers, it could adversely affect their operating results and impact their ability to pay dividends on our equity investments and/or interest and principal on our loans, particularly if interest rates rise in response to inflation. In addition, any projected future decreases in our portfolio companies' operating results due to inflation could adversely impact the fair value of those investments. Any decreases in the fair value of our investments could result in future realized or unrealized losses and therefore reduce our net increase (decrease) in net assets resulting from operations.

***We may be exposed to higher risks with respect to our investments that include original issue discount or PIK interest.***

Our investments may include original issue discount and contractual PIK interest, which represents contractual interest added to a loan balance and due at the end of such loan's term. To the extent original issue discount or PIK interest

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

constitute a portion of our income, we are exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• original issue discount and PIK instruments may have higher yields, which reflect the payment deferral and credit risk associated with these instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for accounting purposes, cash distributions to investors representing original issue discount income are not derived from paid in capital, although they may be effectively paid from any offering proceeds during any given period; thus, although the source for the cash used to pay a distribution of original issue discount income may come from the cash invested by investors, the 1940 Act does not require that investors be given notice of this fact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• original issue discount and PIK instruments may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of the collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• original issue discount and PIK instruments may represent a higher credit risk than coupon loans; even if the conditions for income accrual under generally accepted accounting principles in the United States of America are satisfied, a borrower could still default when actual payment is due upon the maturity of such loan.

***The lack of liquidity in our investments may adversely affect our business.***

We generally invest in companies whose securities are not publicly traded and whose securities will be subject to legal and other restrictions on resale or will otherwise be less liquid than publicly traded securities. The illiquidity of these investments may make it difficult for us to sell these investments when desired. In addition, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded these investments. As a result, we do not expect to achieve liquidity in our investments in the near-term. Our investments are usually subject to contractual or legal restrictions on resale or are otherwise illiquid because there is usually no established trading market for such investments. The illiquidity of most of our investments may make it difficult for us to dispose of them at a favorable price and, as a result, we may suffer losses.

***We may not have the funds or ability to make additional investments in our portfolio companies.***

We may not have the funds or ability to make additional investments in our portfolio companies. After our initial investment in a portfolio company, we may be called upon from time to time to provide additional funds to such company or have the opportunity to increase our investment through the extension of additional loans, the exercise of a warrant to purchase equity securities, or the funding of additional equity investments. There is no assurance that we will make, or will have sufficient funds to make, follow-on investments. Any decisions not to make a follow-on investment or any inability on our part to make such an investment may have a negative impact on a portfolio company in need of such an investment, may result in a missed opportunity for us to increase our participation in a successful operation, may reduce our ability to protect an existing investment or may reduce the expected yield on the investment.

***There may be circumstances where our debt investments could be subordinated to claims of other creditors or we could be subject to lender liability claims.***

Our portfolio companies may have, or may be permitted to incur, other debt that ranks equally with, or senior to, the debt in which we invest. By their terms, such debt instruments may entitle the holders to receive payment of interest or principal on or before the dates on which we are entitled to receive payments with respect to the debt instruments in which we invest. Also, in the event of insolvency, liquidation, dissolution, reorganization or bankruptcy of a portfolio company, holders of debt instruments ranking senior to our investment in that portfolio company would typically be entitled to receive payment in full before we receive any distribution. After repaying such senior creditors, such portfolio company may not have any remaining assets to use for repaying its obligation to us. In the case of debt ranking equally with debt instruments in which we invest, we would have to share on an equal basis any distributions with other creditors holding such debt in the event of an insolvency, liquidation, dissolution, reorganization or bankruptcy of the relevant portfolio company.

Even if our investment is structured as a senior-secured loan, principles of equitable subordination, as defined by existing case law, could lead a bankruptcy court to subordinate all or a portion of our claim to that of other creditors and

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

transfer any lien securing such subordinated claim to the bankruptcy estate. The principles of equitable subordination defined by case law have generally indicated that a claim may be subordinated only if its holder is guilty of misconduct or where the senior loan is re-characterized as an equity investment and the senior lender has actually provided significant managerial assistance to the bankrupt debtor. We may also be subject to lender liability claims for actions taken by us with respect to a borrower's business or instances where we exercise control over the borrower. It is possible that we could become subject to a lender liability claim, including as a result of actions taken in rendering significant managerial assistance or actions to compel and collect payments from the borrower outside the ordinary course of business.

***We generally will not control our portfolio companies.***

We do not, and do not expect to, control the decision making in many of our portfolio companies, even though we may have board representation or board observation rights, and our debt agreements may contain certain restrictive covenants. As a result, we are subject to the risk that a portfolio company in which we invest will make business decisions with which we disagree and the management of such company will take risks or otherwise act in ways that do not serve our interests as debt investors or minority equity holders. Due to the lack of liquidity for our investments in non-traded companies, we may not be able to dispose of our interests in our portfolio companies as readily as we would like or at an appropriate valuation. As a result, a portfolio company may make decisions that would decrease the value of our portfolio holdings.

***Defaults by our portfolio companies will harm our operating results.***

A portfolio company's failure to satisfy financial or operating covenants imposed by us or other lenders could lead to non-payment of interest and other defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize a portfolio company's ability to meet its obligations under the debt or equity securities that we hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms, which may include the waiver of certain financial covenants, with a defaulting portfolio company.

***Any unrealized depreciation that we experience in our portfolio may be an indication of future realized losses, which could reduce our income and gains available for distribution.***

As a BDC, we are required to carry our investments at market value or, if no market value is ascertainable, at the fair value as determined in accordance with our Valuation Procedures adopted pursuant to Rule 2a-5 under the 1940 Act. Decreases in the market values or fair values of our investments will be recorded as unrealized depreciation. Any unrealized depreciation in our portfolio could be an indication of a portfolio company's inability to meet its repayment obligations to us with respect to affected loans or a potential impairment of the value of affected equity investments.

This could result in realized losses in the future and ultimately in reductions of our income and gains available for distribution in future periods.

***Prepayments of our debt investments by our portfolio companies could adversely impact our results of operations and reduce our return on equity.***

We are subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity. When this occurs, we will generally reinvest these proceeds in temporary investments, pending their future investment in new portfolio companies. These temporary investments will typically have substantially lower yields than the debt being prepaid and we could experience significant delays in reinvesting these amounts. Any future investment in a new portfolio company may also be at lower yields than the debt that was repaid. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments could negatively impact our return on equity, which could result in a decline in the market price of our securities.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***The interest rates of some of our investments are priced using a spread over LIBOR, which will be phased out in the future.***

LIBOR is the basic rate of interest used in lending between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. On July 27, 2017, the U.K Financial Conduct Authority ("FCA") announced that it would phase out LIBOR as a benchmark by the end of 2021. As of December 31, 2021, all non-U.S. dollar LIBOR publications have been phased out. The phase out of a majority of the U.S. dollar publications is delayed until June 30, 2023. The Alternative Reference Rates Committee ("ARRC") of the Federal Reserve Bank of New York previously confirmed that this constitutes a "benchmark transition event" and established "benchmark replacement dates" in ARRC standard LIBOR transition provisions that exist in many U.S. law contracts using LIBOR. There is currently no definitive information regarding the future utilization of LIBOR.

The ARRC has identified SOFR as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by the U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, it is not possible to predict whether SOFR will attain market traction as a LIBOR replacement tool, and the future of LIBOR is still uncertain. The effect of any such changes, any establishment of alternative reference rates or any other reforms to LIBOR or other reference rates that may be enacted in the United States, United Kingdom or elsewhere cannot be predicted at this time, and it is not possible to predict whether LIBOR will continue to be viewed as an acceptable market benchmark, what rate or rates may become accepted alternatives to LIBOR, or what the effect of any such changes in views or alternatives may have on the financial markets for financial instruments based on LIBOR.

To date, nearly all of the agreements with our portfolio companies governing floating rate loans are already utilizing SOFR or include fallback language providing a mechanism for a new reference interest rate in the event that LIBOR ceases to exist, and our credit facilities have been amended to utilize SOFR. Factors such as the pace of the transition to replacement or reformed rates, the specific terms and parameters for and market acceptance of any alternative reference rate, prices of and the liquidity of trading markets for products based on alternative reference rates, and our ability to transition and develop appropriate systems and analytics for one or more alternative reference rates could also have a material adverse effect on our business, financial condition and results of operations. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have a material adverse effect on our business, financial condition and results of operations.

***We may be subject to risks associated with "covenant-lite" loans.***

Some of the loans in which we invest may be "covenant-lite" loans, which means the loans contain fewer maintenance covenants than other loans (in some cases, none) and do not include terms which allow the lender to monitor the performance of the borrower and declare a default if certain criteria are breached. Generally, "covenant-lite" loans provide borrower companies more freedom to negatively impact lenders because their covenants are incurrence-based, which means they are only tested and can only be breached following an affirmative action of the borrower, rather than by a deterioration in the borrower's financial condition. To the extent we invest in covenant-lite loans, we may have fewer rights against a borrower and may have a greater risk of loss on such investments as compared to investments in loans with finance maintenance covenants.

***We may not realize gains from our equity investments.***

Certain investments that we have made in the past and may make in the future include warrants or other equity securities. Investments in equity securities involve a number of significant risks, including the risk of further dilution as a result of additional issuances, inability to access additional capital and failure to pay current distributions. Investments in preferred securities involve special risks, such as the risk of deferred distributions, credit risk, illiquidity and limited voting rights. In addition, we may from time to time make non-control, equity investments in portfolio companies. Our goal is ultimately to realize gains upon our disposition of such equity interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience. We also may be unable to realize any value if a portfolio company does not have a liquidity event, such as a sale of the business, recapitalization or public offering, which would allow us to sell the underlying equity interests. We often seek puts or similar rights to give us the right to sell our equity securities back to the portfolio company

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

issuer; however, we may be unable to exercise these put rights for the consideration provided in our investment documents if the issuer is in financial distress.

***Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.***

Our investment strategy contemplates potential investments in debt securities of foreign companies. Investing in foreign companies may expose us to additional risks not typically associated with investing in securities of U.S. companies. These risks include changes in exchange control regulations, political and social instability, expropriation, imposition of foreign taxes, less liquid markets and less available information than is generally the case in the U.S., higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility.

Although most of our investments will be U.S. dollar denominated, any investments denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. 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.

**RISKS RELATED TO LEVERAGE**

***Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.***

Borrowings, also known as leverage, magnify the potential for loss on investments in our indebtedness and gain or loss on investments in our equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. Accordingly, any event that adversely affects the value of an investment would be magnified to the extent we use leverage. Such events could result in a substantial loss to us, which would be greater than if leverage had not been used. In addition, our investment objectives are dependent on the continued availability of leverage at attractive relative interest rates.

We may also borrow from banks and other lenders and may issue debt securities or enter into other types of borrowing arrangements in the future. Lenders of these senior securities will have fixed dollar claims on our assets that are superior to the claims of our common stockholders, and we would expect such lenders to seek recovery against our assets in the event of a default. We have the ability to pledge up to 100% of our assets and can grant a security interest in all of our assets under the terms of any debt instruments we could enter into with lenders. The terms of our existing indebtedness require us to comply with certain financial and operational covenants, and we expect similar covenants in future debt instruments. Failure to comply with such covenants could result in a default under the applicable credit facility or debt instrument if we are unable to obtain a waiver from the applicable lender or holder, and such lender or holder could accelerate repayment under such indebtedness and negatively affect our business, financial condition, results of operations and cash flows. In addition, under the terms of any credit facility or other debt instrument we enter into, in the event of a default, we are likely to be required by its terms to use the net proceeds of any investments that we sell to repay a portion of the amount borrowed under such facility or instrument before applying such net proceeds to any other uses. See *Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — Capital Resources* for a discussion regarding our outstanding indebtedness.

If the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any decrease in our income would cause net investment income to decline more sharply than it would have had we not leveraged our business. Such a decline could negatively affect our ability to pay common stock dividends, scheduled debt payments or other payments related to our securities.

*Illustration:* The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Assumed Return on Our Portfolio**<sup>(1)</sup> **(net of expenses)** | **(10.0) %** | **(5.0) %** | **0.0%** | **5.0%** | **10.0%** |
| Corresponding Net Return to Common Stock Holder<sup>(2)</sup> | (24.6)% | (14.6)% | (4.6)% | 5.5% | 15.5% |

---

______________________

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

(1)Assumes, as of December 31, 2022, $4,241.9 million in total assets, $2,007.0 million in debt outstanding, $2,108.6 million in net assets, and a weighted-average interest rate of 4.8%. Actual interest payments may be different.

(2)In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our December 31, 2022 total assets of at least 2.3%.

Our ability to achieve our investment objective may depend in part on our ability to access additional leverage on favorable terms and there can be no assurance that such additional leverage can in fact be achieved. If we are unable to obtain leverage or if the interest rates of such leverage are not attractive, we could experience diminished returns. The number of leverage providers and the total amount of financing available could decrease or remain static.

***All of our assets are subject to security interests under our senior securities and if we default on our obligations under our senior securities, we may suffer adverse consequences, including foreclosure on our assets.***

Substantially all of our assets are currently pledged as collateral under our senior securities, including any credit facilities or notes. If we default on our obligations under our senior securities, our lenders may have the right to foreclose upon and sell, or otherwise transfer, the collateral subject to their security interests or their superior claim. In such event, we may be forced to sell our investments to raise funds to repay our outstanding borrowings in order to avoid foreclosure and these forced sales may be at times and at prices we would not consider advantageous. Moreover, such deleveraging of our company could significantly impair our ability to effectively operate our business in the manner in which we have historically operated. As a result, we could be forced to curtail or cease new investment activities and lower or eliminate the dividends that we have historically paid to our stockholders. In addition, if the lenders exercise their right to sell the assets pledged under our senior securities, such sales may be completed at distressed sale prices, thereby diminishing or potentially eliminating the amount of cash available to us after repayment of the amounts outstanding under the senior securities.

If our operating performance declines and we are not able to generate sufficient cash flow to service our debt obligations, we may in the future need to refinance or restructure our debt, sell assets, reduce or delay capital investments, seek to raise additional capital or seek to obtain waivers from the required lenders under our senior securities to avoid being in default. If we are unable to implement one or more of these alternatives, we may not be able to meet our payment obligations under our senior securities. If we breach our covenants under our senior securities and seek a waiver, we may not be able to obtain a waiver from the required lenders or debt holders. If this occurs, we would be in default under our senior securities, the lenders or debt holders could exercise their rights as described above, and we could be forced into bankruptcy or liquidation. If we are unable to repay debt, lenders having secured obligations could proceed against the collateral securing the debt. Because certain of our senior securities have customary cross-default provisions, if the indebtedness under our senior securities is accelerated, we may be unable to repay or finance the amounts due.

***We are subject to risks associated with any revolving credit facility that utilizes a Structured Subsidiary as our interests in any Structured Subsidiary are subordinated and we could be prevented from receiving cash on our equity interests from a Structured Subsidiary.***

We own directly or indirectly 100% of the equity interests in MSCC Funding I, LLC ("MSCC Funding"), a special purpose Structured Subsidiary utilized in our senior secured special purpose vehicle revolving credit facility (the "SPV Facility"). We consolidate the financial statements of the MSCC Funding in our consolidated financial statements and treat the indebtedness under the SPV Facility as our leverage. Our interest in MSCC Funding is subordinated in priority of payment to every other obligation of MSCC Funding and is subject to certain payment restrictions set forth in the SPV Facility.

We receive cash from MSCC Funding only to the extent that we receive distributions on our equity interests therein. MSCC Funding could make distributions on its equity interests only to the extent permitted by the payment priority provisions of the SPV Facility. The SPV Facility generally provides that payments on the respective interests could not be made on any payment date unless all amounts owing to the lenders and other secured parties are paid in full. In addition, if MSCC Funding does not meet the asset coverage tests or the interest coverage test set forth in the agreement governing the SPV Facility, a default could occur. In the event of a default under the SPV Facility credit agreement, cash would be diverted from us to pay the applicable lenders and other secured parties in amounts sufficient to cause such tests to be satisfied. In the event that we fail to receive cash from MSCC Funding, we could be unable to make distributions to our stockholders in amounts sufficient to maintain our status as a RIC, or at all. We also could be forced to sell investments in portfolio companies at less than their fair value in order to continue making such distributions. We cannot assure you that

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

distributions on the assets held by MSCC Funding will be sufficient to make any distributions to us or that such distributions will meet our expectations.

Our equity interest in MSCC Funding ranks behind all of the secured and unsecured creditors, known or unknown, including the lenders in the SPV Facility. Consequently, to the extent that the value of MSCC Funding's portfolio of loan investments has been reduced as a result of conditions in the credit markets, defaulted loans, capital gains and losses on the underlying assets, prepayment or changes in interest rates, the returns on our investments in MSCC Funding could be reduced. Accordingly, our investments in MSCC Funding could be subject to up to 100% loss.

***The ability to sell investments held by a Structured Subsidiary is limited.***

The credit agreement governing the SPV Facility places significant restrictions on our ability, as servicer, to sell investments. As a result, there could be times or circumstances during which we are unable to sell investments or take other actions that might be in our best interests.

***We may invest in derivatives or other assets that expose us to certain risks, including market risk, liquidity risk and other risks similar to those associated with the use of leverage.***

We may invest in derivatives and other assets that are subject to many of the same types of risks related to the use of leverage. In October 2020, the SEC adopted Rule 18f-4 under the 1940 Act regarding the ability of a BDC to use derivatives and other transactions that create future payment or delivery obligations. Under Rule 18f-4, BDCs that use derivatives are subject to a value-at-risk leverage limit, a derivatives risk management program and testing requirements and requirements related to board reporting. These requirements apply unless the BDC qualifies as a "limited derivatives user," as defined under Rule 18f-4. Under Rule 18f-4, a BDC may enter into an unfunded commitment agreement (which may include delayed draw and revolving loans) that will not be deemed to be a derivatives transaction, such as an agreement to provide financing to a portfolio company, if the BDC has, among other things, a reasonable belief, at the time it enters into such an agreement, that it will have sufficient cash and cash equivalents to meet its obligations with respect to all of its unfunded commitment agreements, in each case as it becomes due. Collectively, these requirements may limit our ability to use derivatives and/or enter into certain other financial contracts.

We have adopted updated policies and procedures in compliance with Rule 18f-4. We expect to qualify as a "limited derivatives user." Future legislation or rules may modify how we treat derivatives and other financial arrangements for purposes of our compliance with the leverage limitations of the 1940 Act. Future legislation or rules, may modify how leverage is calculated under the 1940 Act and, therefore, may increase or decrease the amount of leverage currently available to us under the 1940 Act, which may be materially adverse to us and our investors.

**RISKS RELATED TO OUR INVESTMENT MANAGEMENT ACTIVITIES**

***Our executive officers and employees, through the External Investment Manager, may manage other investment funds that operate in the same or a related line of business as we do, and may invest in such funds, which may result in significant conflicts of interest.***

Our executive officers and employees, through the External Investment Manager, may manage other investment funds or assets for other clients that operate in the same or a related line of business as we do, and which funds may be invested in by us and/or our executive officers and employees. Accordingly, they may have obligations to, or pecuniary interests in, such other entities, and the fulfillment of such obligations may not be in the best interests of us or our stockholders and may create conflicts of interest.

We have made and, in the future, intend to make co-investments with other funds or clients advised by the External Investment Manager in accordance with the conditions of an exemptive relief order from the SEC permitting such co-investment transactions. The order requires, among other things, that we and the External Investment Manager consider whether each such investment opportunity is appropriate for us and the External Investment Manager's advised clients and, if it is appropriate, to propose an allocation of the investment opportunity between such other parties. As a consequence, it may be more difficult for us to maintain or increase the size of our Investment Portfolio in the future. Although we will endeavor to allocate investment opportunities in a fair and equitable manner, including in accordance with the conditions set forth in the order issued by the SEC when relying on such order, we may face conflicts in allocating investment opportunities between us and other funds and accounts managed by the External Investment Manager. Because the External Investment Manager may receive performance-based fee compensation from other funds and accounts it manages,

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

this may provide the Company and the External Investment Manager an incentive to allocate opportunities to other funds and accounts the External Investment Manager manages, instead of us. We and the External Investment Manager have implemented an allocation policy to ensure the equitable distribution of investment opportunities and, as a result, may be unable to participate in certain investments based upon such allocation policy.

***We, through the External Investment Manager, derive revenues from managing third-party funds pursuant to management agreements that may be terminated.***

The External Investment Manager earns management fees based on the assets of the funds or other clients under management and may earn incentive fees, or a carried interest, based on the performance of the funds or accounts managed. The terms of fund investment management agreements generally give the manager of the fund and the fund itself the right to terminate the management agreement in certain circumstances. With respect to funds that are not exempt from regulation under the 1940 Act, the fund's investment management agreement must be approved annually by (a) such fund's board of directors or by the vote of a majority of such fund's stockholders and (b) the majority of the independent members of such fund's board of directors and, in certain cases, by its stockholders, as required by law. The funds' investment management agreements can also be terminated by the majority of such fund's stockholders. Termination of any such management agreements would reduce the fees we earn from the relevant funds or other clients through the External Investment Manager, which could have a material adverse effect on our results of operations.

**RISKS RELATED TO BDCs**

***Failure to comply with applicable laws or regulations and changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.***

We, the Funds, and our portfolio companies are subject to applicable local, state and federal laws and regulations. Failure to comply with any applicable local, state or federal law or regulation could negatively impact our reputation and our business results. New legislation may also be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we are permitted to make, any of which could harm us and our stockholders, potentially with retroactive effect. Additionally, any changes to the laws and regulations governing our operations relating to permitted investments may cause us to alter our investment strategy in order to avail ourselves of new or different opportunities. Such changes could result in material differences to the strategies and plans set forth herein and may result in our investment focus shifting from the areas of expertise of our investment team to other types of investments in which our investment team may have less expertise or little or no experience. Thus, any such changes, if they occur, could have a material adverse effect on our results of operations and the value of your investment.

***Failure to maintain our status as a BDC would reduce our operating flexibility.***

If we do not remain a BDC, we might be regulated as a closed-end investment company under the 1940 Act, which would subject us to substantially more regulatory restrictions under the 1940 Act and correspondingly decrease our operating flexibility.

***Operating under the constraints imposed on us as a BDC and RIC may hinder the achievement of our investment objectives.***

The 1940 Act and the Code impose numerous constraints on the operations of BDCs and RICs that do not apply to certain of the other investment vehicles that we may compete with. BDCs are required, for example, to invest at least 70% of their total assets in certain qualifying assets, including U.S. private or thinly traded public companies, cash, cash equivalents, U.S. government securities and other high-quality debt instruments that mature in one year or less from the date of investment. Moreover, qualification for taxation as a RIC requires satisfaction of source-of-income, asset diversification and distribution requirements. Operating under these constraints may hinder our ability to take advantage of attractive investment opportunities and to achieve our investment objective. Any failure to do so could subject us to enforcement action by the SEC, cause us to fail to satisfy the requirements associated with RIC status and subject us to entity-level corporate income taxation, cause us to fail the 70% test described above or otherwise have a material adverse effect on our business, financial condition or results of operations.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***Regulations governing our operation as a BDC will affect our ability to, and the way in which we, raise additional capital.***

Our business will require capital to operate and grow. We may acquire such additional capital from the following sources:

*Senior Securities* 

We may issue debt securities or preferred stock and/or borrow money from banks or other financial institutions, which we refer to collectively as senior securities. As a result of issuing senior securities, we will be exposed to additional risks, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prior to the approval of our stockholders, under the provisions of the 1940 Act we were permitted, as a BDC, to issue senior securities only in amounts such that our BDC asset coverage ratio, as defined in the 1940 Act, equaled at least 200% immediately after each issuance of senior securities. Following the approval of our stockholders of the reduced asset coverage requirements in Section 61(a)(2) of the 1940 Act and subject to our compliance with certain disclosure requirements, effective as of May 3, 2022, under the provisions of the 1940 Act, we are permitted to issue senior securities in amounts such that our BDC asset coverage ratio, as defined in the 1940 Act, equals at least 150% of gross assets less all liabilities and indebtedness not represented by senior securities, after each issuance of senior securities. If the value of our assets declines, we may be unable to satisfy this test. If that happens, we will be prohibited from issuing debt securities or preferred stock and/or borrowing money from banks or other financial institutions and may not be permitted to declare a dividend or make any distribution to stockholders or repurchase shares until such time as we satisfy this test.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any amounts that we use to service our debt or make payments on preferred stock will not be available for dividends to our common stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is likely that any senior securities or other indebtedness we issue will be governed by an indenture or other instrument containing covenants restricting our operating flexibility. Additionally, some of these securities or other indebtedness may be rated by rating agencies, and in obtaining a rating for such securities and other indebtedness, we may be required to abide by operating and investment guidelines that further restrict operating and financial flexibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We and, indirectly, our stockholders will bear the cost of issuing and servicing such securities and other indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Preferred stock or any convertible or exchangeable securities that we issue in the future may have rights, preferences and privileges more favorable than those of our common stock, including separate voting rights and could delay or prevent a transaction or a change in control to the detriment of the holders of our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any unsecured debt issued by us would generally rank (i) pari passu with our current and future unsecured indebtedness and effectively subordinated to all of our existing and future secured indebtedness, to the extent of the value of the assets securing such indebtedness, and (ii) structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries.

*Additional Common Stock*

We are not generally able to issue and sell our common stock at a price below NAV per share. We may, however, sell our common stock, warrants, options or rights to acquire our common stock, at a price below the current NAV of the common stock if our Board of Directors determines that such sale is in the best interests of our stockholders, and our stockholders approve such sale. See *Risk Factors — Risks Related to our Securities — Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.* for a discussion related to us issuing shares of our common stock below NAV. Our stockholders have authorized us to issue warrants, options or rights to subscribe for, convert to, or purchase shares of our common stock at a price per share below the NAV per share, subject to the applicable requirements of the 1940 Act. There is no expiration date on our ability to issue such

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

warrants, options, rights or convertible securities based on this stockholder approval. If we raise additional funds by issuing more common stock or senior securities convertible into, or exchangeable for, our common stock, the percentage ownership of our stockholders at that time would decrease, and they may experience dilution. Moreover, we can offer no assurance that we will be able to issue and sell additional equity securities in the future, on favorable terms or at all.

**RISKS RELATED TO OUR SECURITIES**

***Investing in our securities may involve a high degree of risk.***

The investments we make in accordance with our investment objective may result in a higher amount of risk than alternative investment options and a higher risk of volatility or loss of principal. Our investments in portfolio companies involve higher levels of risk, and therefore, an investment in our securities may not be suitable for someone with lower risk tolerance.

***Shares of closed-end investment companies, including BDCs, may trade at a discount to their NAV.***

Shares of closed-end investment companies, including BDCs, may trade at a discount to NAV. This characteristic of closed-end investment companies and BDCs is separate and distinct from the risk that our NAV per share may decline. We cannot predict whether our common stock will trade at, above or below NAV. In addition, if our common stock trades below our NAV per share, we will generally not be able to issue additional common stock at the market price unless our stockholders approve such a sale and our Board of Directors makes certain determinations. See *Risk Factors — Risks Related to our Securities — Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.* for a discussion related to us issuing shares of our common stock below NAV.

***The market price of our securities may be volatile and fluctuate significantly.***

Fluctuations in the trading prices of our securities may adversely affect the liquidity of the trading market for our securities and, if we seek to raise capital through future securities offerings, our ability to raise such capital. The market price and liquidity of the market for our securities may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant volatility in the market price and trading volume of securities of BDCs or other companies in our sector, which are not necessarily related to the operating performance of these companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in regulatory policies, accounting pronouncements or tax guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exclusion of BDC common stock from certain market indices, such as what happened with respect to the Russell indices and the Standard and Poor's indices, could reduce the ability of certain investment funds to own our common stock and limit the number of owners of our common stock and otherwise negatively impact the market price of our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• inability to obtain any exemptive relief that may be required by us in the future from the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of our BDC or RIC status or any of the Funds' status as an SBIC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in our earnings or variations in our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the value of our portfolio of investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any shortfall in our investment income or net investment income or any increase in losses from levels expected by investors or securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of a major funding source;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fluctuations in interest rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the operating performance of companies comparable to us;

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• departure of our key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• proposed, or completed, offerings of our securities, including classes other than our common stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• global or national credit market changes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic trends and other external factors.

***We may not be able to pay distributions to our stockholders, our distributions may not grow over time, and a portion of distributions paid to our stockholders may be a return of capital.***

We intend to pay distributions to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to pay a specified level of cash distributions, previously projected distributions for future periods, or year-to-year increases in cash distributions. Our ability to pay distributions might be adversely affected by, among other things, the impact of one or more of the risk factors described herein. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC could limit our ability to pay distributions. All distributions will be paid at the discretion of our Board of Directors and will depend on our earnings, our financial condition, maintenance of our RIC status, compliance with applicable BDC regulations, compliance with our debt covenants and such other factors as our Board of Directors may deem relevant from time to time. We cannot assure you that we will pay distributions to our stockholders in the future.

When we make distributions, we will be required to determine the extent to which such distributions are paid out of current or accumulated taxable earnings, recognized capital gains or capital. To the extent there is a return of capital, investors will be required to reduce their basis in our stock for U.S. federal income tax purposes, which may result in higher tax liability when the shares are sold, even if they have not increased in value or have lost value. In addition, any return of capital will be net of any sales load and offering expenses associated with sales of shares of our common stock. In the future, our distributions may include a return of capital.

***Stockholders may incur dilution if we sell shares of our common stock in one or more offerings at prices below the then current NAV per share of our common stock or issue securities to subscribe to, convert to or purchase shares of our common stock.***

The 1940 Act prohibits us from selling shares of our common stock at a price below the current NAV per share of such stock, with certain exceptions. One such exception is prior stockholder approval of issuances below NAV provided that our Board of Directors makes certain determinations. We did not seek stockholder authorization to sell shares of our common stock below the then current NAV per share of our common stock at our 2022 Annual Meeting of Stockholders, and have not sought such authorization since 2012, because our common stock price per share had been trading significantly above the NAV per share of our common stock since 2011. We may, however, seek such authorization at future annual or special meetings of stockholders. Our stockholders have previously approved a proposal to authorize us to issue securities to subscribe to, convert to, or purchase shares of our common stock in one or more offerings. Any decision to sell shares of our common stock below the then current NAV per share of our common stock or securities to subscribe to, convert to, or purchase shares of our common stock would be subject to the determination by our Board of Directors that such issuance is in our and our stockholders' best interests.

If we were to sell shares of our common stock below NAV per share, such sales would result in an immediate dilution to the NAV per share. This dilution would occur as a result of the sale of shares at a price below the then current NAV per share of our common stock and a proportionately greater decrease in a stockholder's interest in our earnings and assets and voting interest in us than the increase in our assets resulting from such issuance. In addition, if we issue securities to subscribe to, convert to or purchase shares of common stock, the exercise or conversion of such securities would increase the number of outstanding shares of our common stock. Any such exercise would be dilutive on the voting power of existing stockholders and could be dilutive with regard to dividends and our NAV, and other economic aspects of the common stock.

Because the number of shares of common stock that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted; however, the example below illustrates the effect of dilution to existing stockholders resulting from the sale of common stock at prices below the NAV of such shares.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

*Illustration: Example of Dilutive Effect of the Issuance of Shares Below NAV.* Assume that Company XYZ has 1,000,000 total shares outstanding, $15,000,000 in total assets and $5,000,000 in total liabilities. The NAV per share of the common stock of Company XYZ is $10.00. The following table illustrates the reduction to NAV and the dilution experienced by Stockholder A following the sale of 40,000 shares of the common stock of Company XYZ at $9.50 per share, a price below its NAV per share.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Prior to Sale**<br>**Below NAV** | **Following Sale**<br>**Below NAV** | **Following Sale**<br>**Below NAV** | **Percentage**<br>**Change** |
| ***Reduction to NAV*** |  |  |  |  |
| Total Shares Outstanding | 1000000 | 1040000 |  | 4.0% |
| NAV per share | $10.00 | $9.98 |  | (0.2)% |
| ***Dilution to Existing Stockholder*** |  |  |  |  |
| Shares Held by Stockholder A | 10000 | 10000 | (1) | 0.0% |
| Percentage Held by Stockholder A | 1.00% | 0.96% |  | (3.8)% |
| Total Interest of Stockholder A in NAV | $100000 | $99808 |  | (0.2)% |

---

______________________

(1)Assumes that Stockholder A does not purchase additional shares in the sale of shares below NAV.

***Provisions of the Maryland General Corporation Law and our articles of incorporation and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.***

The Maryland General Corporation Law and our articles of incorporation and bylaws contain provisions that may have the effect of discouraging, delaying or making difficult a change in control of our company or the removal of our incumbent directors. The existence of these provisions, among others, may have a negative impact on the price of our common stock and may discourage third-party bids for ownership of our company. These provisions may prevent any premiums being offered to you for our common stock.

***We may in the future determine to issue preferred stock, which could adversely affect the market value of our common stock.***

The issuance of shares of preferred stock with dividend or conversion rights, liquidation preferences or other economic terms favorable to the holders of preferred stock could adversely affect the market price for our common stock by making an investment in the common stock less attractive. In addition, the dividends on any preferred stock we issue must be cumulative. Payment of dividends and repayment of the liquidation preference of preferred stock must take preference over any dividends or other payments to our common stockholders, and holders of preferred stock are not subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference (other than convertible preferred stock that converts into common stock). In addition, under the 1940 Act, preferred stock constitutes a "senior security" for purposes of the asset coverage test.

**RISKS RELATED TO OUR SBIC FUNDS**

***We, through the Funds, issue debt securities guaranteed by the SBA and sold in the capital markets. As a result of its guarantee of the debt securities, the SBA has fixed dollar claims on the assets of the Funds that are superior to the claims of our securities holders.***

We, through the Funds, have outstanding SBIC debentures guaranteed by the SBA. The debentures guaranteed by the SBA have a maturity of ten years from the date of issuance and require semiannual payments of interest. We will need to generate sufficient cash flow to make required interest payments on the debentures. If we are unable to meet the financial obligations under the debentures, the SBA, as a creditor, will have a superior claim to the assets of the Funds over our securities holders in the event we liquidate or the SBA exercises its remedies under such debentures as the result of a default by us.

***The Funds are licensed by the SBA, and therefore subject to SBIC regulations.***

The Funds, our wholly-owned subsidiaries, are licensed to act as SBICs and are regulated by the SBA. The SBA also places certain limitations on the financing terms of investments by SBICs in portfolio companies and prohibits SBICs

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

from providing funds for certain purposes or to businesses in a few prohibited industries. Compliance with SBA requirements may cause the Funds to forego attractive investment opportunities that are not permitted under SBIC regulations.

Further, the SBIC regulations require, among other things, that a licensed SBIC be periodically examined by the SBA and audited by an independent auditor, in each case to determine the SBIC's compliance with the relevant SBIC regulations. The SBA prohibits, without prior SBA approval, a "change of control" of an SBIC or transfers that would result in any person (or a group of persons acting in concert) owning 10% or more of a class of capital stock of a licensed SBIC. If the Funds fail to comply with applicable SBIC regulations, the SBA could, depending on the severity of the violation, limit or prohibit their use of SBIC debentures, declare outstanding SBIC debentures immediately due and payable, and/or limit them from making new investments. In addition, the SBA can revoke or suspend a license for willful or repeated violation of, or willful or repeated failure to observe, any provision of the Small Business Investment Act of 1958 or any rule or regulation promulgated thereunder. Such actions by the SBA would, in turn, negatively affect us.

***Each of the Funds, as an SBIC, may be unable to make distributions to us that will enable us to meet or maintain RIC status, which could result in the imposition of an entity-level tax.***

In order for us to continue to qualify for RIC tax treatment and to minimize corporate-level U.S. federal taxes, we will be required to distribute substantially all of our net ordinary taxable income and net capital gain income, including taxable income from certain of our subsidiaries, which includes the income from the Funds. We will be partially dependent on the Funds for cash distributions to enable us to meet the RIC distribution requirements. The Funds may be limited by SBIC regulations from making certain distributions to us that may be necessary to enable us to maintain our status as a RIC. We may have to request a waiver of the SBA's restrictions for the Funds to make certain distributions to maintain our eligibility for RIC status. We cannot assure you that the SBA will grant such waiver and if the Funds are unable to obtain a waiver, compliance with the SBIC regulations may result in loss of RIC tax treatment and a consequent imposition of an entity-level tax on us.

**FEDERAL INCOME TAX RISKS**

***We will be subject to corporate-level U.S. federal income tax if we are unable to qualify as a RIC under Subchapter M of the Code.***

To maintain RIC tax treatment under the Code, we must meet the following annual distribution, income source and asset diversification requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Annual Distribution Requirement for a RIC will be satisfied if we distribute to our stockholders on an annual basis at least 90% of our net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses, if any. Depending on the level of taxable income earned in a tax year, we may choose to carry forward taxable income in excess of current year distributions into the next tax year and pay a 4% U.S. federal excise tax on such income. Any such carryover taxable income must be distributed through a dividend declared prior to filing the final tax return related to the year which generated such taxable income. For more information regarding tax treatment, see *Business — Regulation — Taxation as a Regulated Investment Company.* Because we use debt financing, we are subject to certain asset coverage ratio requirements under the 1940 Act and are (and may in the future become) subject to certain financial covenants under loan and credit agreements that could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirement. In addition, because we receive non-cash sources of income such as PIK interest which involves us recognizing taxable income without receiving the cash representing such income, we may have difficulty meeting the distribution requirement. If we are unable to obtain cash from other sources, we could fail to qualify for RIC tax treatment and thus become subject to corporate-level U.S. federal income tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The source-of-income requirement will be satisfied if we obtain at least 90% of our gross income for each year from distributions, interest, gains from the sale of stock or securities or similar sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The asset diversification requirement will be satisfied if we meet certain asset diversification requirements at the end of each quarter of our taxable year. To satisfy this requirement, at least 50% of the value of our assets must consist of cash, cash equivalents, U.S. government securities, securities of other RICs, and other acceptable securities; and no more than 25% of the value of our assets can be invested in the securities, other

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

than U.S. government securities or securities of other RICs, (i) of one issuer, (ii) of two or more issuers that are controlled, as determined under applicable Code rules, by us and that are engaged in the same or similar or related trades or businesses or (iii) of certain "qualified publicly traded partnerships."

Failure to meet these requirements may result in our having to dispose of certain investments quickly in order to prevent the loss of RIC status. Because most of our investments are in privately held companies, and therefore illiquid, any such dispositions could be made at disadvantageous prices and could result in substantial losses. Moreover, if we fail to maintain RIC tax treatment for any reason and are subject to corporate income tax, the resulting corporate taxes could substantially reduce our net assets, the amount of income available for distribution and the amount of our distributions.

***We may have difficulty paying the distributions required to maintain RIC tax treatment under the Code if we recognize income before or without receiving cash representing such income.***

We will include in income certain amounts that we have not yet received in cash, such as: (i) amortization of original issue discount, which may arise if we receive warrants in connection with the origination of a loan such that ascribing a value to the warrants creates original issue discount in the debt instrument, if we invest in a debt investment at a discount to the par value of the debt security or possibly in other circumstances; (ii) contractual payment-in-kind, or PIK, interest, which represents contractual interest added to the loan balance and due at the end of the loan term; (iii) contractual preferred dividends, which represents contractual dividends added to the preferred stock and due at the end of the preferred stock term, subject to adequate profitability at the portfolio company; or (iv) amortization of market discount, which is associated with loans purchased in the secondary market at a discount to par value. Such amortization of original issue discounts, increases in loan balances as a result of contractual PIK arrangements, cumulative preferred dividends, or amortization of market discount will be included in income before we receive the corresponding cash payments. We also may be required to include in income certain other amounts before we receive such amounts in cash. Investments structured with these features may represent a higher level of credit risk compared to investments generating income which must be paid in cash on a current basis.

Since, in certain cases, we may recognize taxable income before or without receiving cash representing such income, we may have difficulty meeting the Annual Distribution Requirement necessary to maintain RIC tax treatment under the Code. Accordingly, we may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities for this purpose. If we are not able to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus become subject to corporate-level U.S. federal income tax. For additional discussion regarding the tax implications of a RIC, please see *Business — Regulation — Taxation as a Regulated Investment Company*.

***We may in the future choose to pay dividends in our own stock, in which case you may be required to pay tax in excess of the cash you receive.***

We may distribute taxable dividends that are payable in part in our stock. Under certain applicable provisions of the Code and the Treasury regulations, distributions payable by us in cash or in shares of stock (at the stockholders' election) would satisfy the Annual Distribution Requirement. Taxable stockholders receiving such dividends will be required to include the full amount of the dividend as ordinary income (or as long-term capital gain to the extent such dividend is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. stockholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our stock.

***Stockholders may have current tax liability on dividends they elect to reinvest in our common stock but would not receive cash from such dividends to pay such tax liability.***

If stockholders participate in our dividend reinvestment plan, they will be deemed to have received, and for federal income tax purposes will be taxed on, the amount reinvested in our common stock to the extent the amount reinvested was not a tax-free return of capital. As a result, unless a stockholder is a tax-exempt entity, it may have to use

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

funds from other sources to pay its tax liability on the value of the dividend that they have elected to have reinvested in our common stock.

***Legislative or regulatory tax changes could adversely affect our stockholders.***

At any time, the federal income tax laws governing RICs or the administrative interpretations of those laws or regulations may be amended. Any new laws, regulations or interpretations may take effect retroactively and could adversely affect the taxation of us or our stockholders. Therefore, changes in tax laws, regulations or administrative interpretations or any amendments thereto could diminish the value of an investment in our shares or the value or the resale potential of our investments. If we do not comply with applicable laws and regulations, we could lose any licenses that we then hold for the conduct of our business and may be subject to civil fines and criminal penalties.

**GENERAL RISK FACTORS**

***Events outside of our control, including public health crises, supply chain disruptions and inflation, could negatively affect our portfolio companies and the results of our operations.***

Periods of market volatility could occur in response to pandemics or other events outside of our control. We and the portfolio companies in which we invest in could be affected by force majeure events (i.e., events beyond the control of the party claiming that the event has occurred, such as acts of God, fire, flood, earthquakes, outbreaks of an infectious disease, pandemic or any other serious public health concern, war, terrorism, labor strikes, major plant breakdowns, pipeline or electricity line ruptures, failure of technology, defective design and construction, accidents, demographic changes, government macroeconomic policies, social instability, etc.). Some force majeure events could adversely affect the ability of a party (including us, a portfolio company or a counterparty to us) to perform its obligations until it is able to remedy the force majeure event. In addition, force majeure events, such as the cessation of the operation of equipment for repair or upgrade, could similarly lead to the unavailability of essential equipment and technologies. These risks could, among other effects, adversely impact the cash flows available from a portfolio company, cause personal injury or loss of life, including to an officer, director or a member of our investment team, damage property, or instigate disruptions of service. In addition, the cost to a portfolio company or us of repairing or replacing damaged assets resulting from such force majeure event could be considerable.

It will not be possible to insure against all such events, and insurance proceeds received, if any, could be inadequate to completely or even partially cover any loss of revenues or investments, any increases in operating and maintenance expenses, or any replacements or rehabilitation of property. Certain events causing catastrophic loss could be either uninsurable, or insurable at such high rates as to adversely impact us or portfolio companies, as applicable. Force majeure events that are incapable of or are too costly to cure could have permanent adverse effects. 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 we invest or our portfolio companies operate specifically. Such force majeure events could result in or coincide with: increased volatility in the global securities, derivatives and currency markets; a decrease in the reliability of market prices and difficulty in valuing assets; greater fluctuations in currency exchange rates; increased risk of default (by both government and private issuers); further social, economic, and political instability; nationalization of private enterprise; greater governmental involvement in the economy or in social factors that impact the economy; less governmental regulation and supervision of the securities markets and market participants and decreased monitoring of the markets by governments or self-regulatory organizations and reduced enforcement of regulations; limited, or limitations on, the activities of investors in such markets; controls or restrictions on foreign investment, capital controls and limitations on repatriation of invested capital; inability to purchase and sell investments or otherwise settle security or derivative transactions (i.e., a market freeze); unavailability of currency hedging techniques; substantial, and in some periods extremely high, rates of inflation, which can last many years and have substantial negative effects on credit and securities markets as well as the economy as a whole; recessions; and difficulties in obtaining and/or enforcing legal judgments.

***We are currently operating in a period of capital markets disruption and economic uncertainty, and capital markets may experience periods of disruption and instability in the future. These market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which may have a negative impact on our business and operations.***

The success of our activities is affected by general economic and market conditions, including, among others, interest rates, availability of credit, inflation rates, economic uncertainty, changes in laws, and trade barriers. These factors

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

could affect the level and volatility of securities prices and the liquidity of our investments. Volatility or illiquidity could impair our profitability or result in losses. These factors also could adversely affect the availability or cost of our leverage, which would result in lower returns.

These disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. Such disruptions could adversely affect our business, financial condition, results of operations and cash flows, and future market disruptions and/or illiquidity could negatively impact us. These unfavorable economic conditions could increase our funding costs and limit our access to the capital markets, and could result in a decision by lenders not to extend credit to us in the future. These events could limit our investments, our ability to grow and could negatively impact our operating results and the fair values of our debt and equity investments.

***Government intervention in the credit markets could adversely affect our business.***

The central banks and, in particular, the U.S. Federal Reserve, have taken unprecedented steps since the financial crises of 2008-2009 and the COVID-19 global pandemic and in response to inflationary pressures. It is impossible to predict if, how, and to what extent the United States and other governments would further intervene in the credit markets. Such intervention is often prompted by politically sensitive issues involving family homes, student loans, real estate speculation, credit card receivables, pandemics, etc., and could, as a result, be contrary to what we would predict from an "economically rational" perspective.

On the other hand, recent governmental intervention could mean that the willingness of governmental bodies to take additional extraordinary action is diminished. As a result, in the event of near-term major market disruptions, like those caused by the COVID-19 pandemic, there might be only limited additional government intervention, resulting in correspondingly greater market dislocation and materially greater market risk.

***We may experience fluctuations in our operating results.***

We could experience fluctuations in our operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment criteria, the interest rate payable on the debt securities we acquire, the level of portfolio dividend and fee income, the level of our expenses, variations in and the timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets and general economic conditions. As a result of these factors, operating results for any period should not be relied upon as being indicative of performance in future periods.

***Technological innovations and industry disruptions may negatively impact us.***

Technological innovations have disrupted traditional approaches in multiple industries and can permit younger companies to achieve success and in the process disrupt markets and market practices. We can provide no assurance that new businesses and approaches will not be created that would compete with us and/or our portfolio companies or alter the market practices in which we have been designed to function within and on which we depend on for our investment return. New approaches could damage our investments, disrupt the market in which we operate and subject us to increased competition, which could materially and adversely affect our business, financial condition and results of investments.

***We are highly dependent on information systems and systems failures could significantly disrupt our business, which may, in turn, negatively affect the market price of our common stock and our ability to pay dividends.***

Our business is highly dependent on our and third parties' communications and information systems. Any failure or interruption of those systems, including as a result of the termination of an agreement with any third-party service providers, could cause delays or other problems in our activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sudden electrical or telecommunications outages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• natural disasters such as earthquakes, tornadoes and hurricanes;

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• disease pandemics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• events arising from local or larger scale political or social matters, including terrorist acts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cyber attacks, including software viruses, ransomware, malware and phishing and vishing schemes.

***The failure in cyber security systems, as well as the occurrence of events unanticipated in our disaster recovery systems and management continuity planning could impair our ability to conduct business effectively.***

The occurrence of a disaster such as a cyber-attack, a natural catastrophe, an industrial accident, a terrorist attack or war, events unanticipated in our disaster recovery systems, or a support failure from external providers, could have an adverse effect on our ability to conduct business and on our results of operations and financial condition, particularly if those events affect our computer-based data processing, transmission, storage, and retrieval systems or destroy data. If a significant number of our managers were unavailable in the event of a disaster, our ability to effectively conduct our business could be severely compromised.

We depend heavily upon computer systems to perform necessary business functions. Despite our implementation of a variety of security measures, our computer systems could be subject to cyber-attacks and unauthorized access, such as physical and electronic break-ins or unauthorized tampering. Like other companies, we may experience threats to our data and systems, including malware and computer virus attacks, unauthorized access, system failures and disruptions. If one or more of these events occurs, it could potentially jeopardize the confidential, proprietary and other information processed and stored in, and transmitted through, our computer systems and networks, or otherwise cause interruptions or malfunctions in our operations, which could result in damage to our reputation, financial losses, litigation, increased costs, regulatory penalties and/or customer dissatisfaction or loss.

Third parties with which we do business (including, but not limited to, service providers, such as accountants, custodians, transfer agents and administrators, and the issuers of securities in which we invest) may also be sources or targets of cyber security or other technological risks. While we engage in actions to reduce our exposure resulting from outsourcing, we cannot control the cyber security plans and systems put in place by these third parties and ongoing threats may result in unauthorized access, loss, exposure or destruction of data, or other cybersecurity incidents, with increased costs and other consequences, including those described above. Privacy and information security laws and regulation changes, and compliance with those changes, may also result in cost increases due to system changes and the development of new administrative processes.

**Item 1B. *Unresolved Staff Comments***

None.

**Item 2. *Properties***

We do not own any real estate or other physical properties materially important to our operations. Currently, we lease office space in Houston, Texas for our corporate headquarters.

**Item 3. *Legal Proceedings***

We may, from time to time, be involved in litigation arising out of our operations in the normal course of business or otherwise. Furthermore, third parties may seek to impose liability on us in connection with the activities of our portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, we do not expect any current matters will materially affect our financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on our financial condition or results of operations in any future reporting period.

**Item 4. *Mine Safety Disclosures***

Not applicable.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**PART II** 

**Item 5. *Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities***

**COMMON STOCK AND HOLDERS** 

Our common stock is traded on the NYSE under the symbol "MAIN."

The following table sets forth, for the periods indicated, the range of high and low closing prices of our common stock as reported on the NYSE, and the sales price as a percentage of the NAV per share of our common stock.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | | **Price Range** | **Price Range** | | |
| |<br>**NAV(1)** | **High** | **Low** | **Premium of<br>High Sales <br>Price to**<br>**NAV(2)** | **Premium of<br>Low Sales <br>Price to**<br>**NAV(2)** |
| ***Year ending December 31, 2023*** | | | | | |
| &nbsp;&nbsp;&nbsp;First Quarter (through February 23, 2023) | \* | $40.28 | $36.87 | \* | \* |
| ***Year ended December 31, 2022*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fourth Quarter | $26.86 | $39.50 | $32.57 | 47% | 21% |
| &nbsp;&nbsp;&nbsp;Third Quarter | 25.94 | 45.28 | 33.23 | 75% | 28% |
| &nbsp;&nbsp;&nbsp;Second Quarter | 25.37 | 43.65 | 34.59 | 72% | 36% |
| &nbsp;&nbsp;&nbsp;First Quarter | 25.89 | 44.88 | 39.94 | 73% | 54% |
| ***Year ended December 31, 2021*** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fourth Quarter | $25.29 | $46.61 | $41.35 | 84% | 64% |
| &nbsp;&nbsp;&nbsp;Third Quarter | 24.27 | 42.81 | 40.20 | 76% | 66% |
| &nbsp;&nbsp;&nbsp;Second Quarter | 23.42 | 43.41 | 38.14 | 85% | 63% |
| &nbsp;&nbsp;&nbsp;First Quarter | 22.65 | 39.56 | 31.35 | 75% | 38% |

---

______________________

\*NAV has not yet been determined for the first quarter of 2023.

(1)NAV is determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low closing prices. The net asset values shown are based on outstanding shares at the end of each period.

(2)Calculated for each quarter as (i) NAV subtracted from the respective high or low share price divided by (ii) NAV.

On February 23, 2023, the last sale price of our common stock on the NYSE was $40.19 per share, and there were 381 holders of record of the common stock which did not include stockholders for whom shares are held in "nominee" or "street name." The NAV per share of our common stock on December 31, 2022 was $26.86, and the premium of the February 23, 2023 closing price of our common stock was 50% to this NAV per share.

Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from NAV per share or at premiums that are unsustainable over the long term are separate and distinct from the risk that our NAV per share will decrease. It is not possible to predict whether our common stock will trade at, above, or below NAV per share. Since our IPO in October 2007, our shares of common stock have traded at prices both less than and exceeding our NAV per share.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**DIVIDEND/DISTRIBUTION POLICY**

We currently intend to distribute dividends or make distributions to our stockholders out of assets legally available for distribution. Our dividends and other distributions, if any, will be determined by our Board of Directors from time to time. Our ability to declare dividends depends on our earnings, our overall financial condition (including our liquidity position), maintenance of our RIC status and such other factors as our Board of Directors may deem relevant from time to time. When we make distributions, we are required to determine the extent to which such distributions are paid out of current or accumulated earnings, recognized capital gains or capital. To the extent there is a return of capital (a distribution of the stockholders' invested capital), investors will be required to reduce their basis in our stock for federal tax purposes. In the future, our distributions may include a return of capital.

We have adopted a dividend reinvestment and direct stock purchase plan (the "Plan"). The dividend reinvestment feature of the Plan (the "DRIP") provides for the reinvestment of dividends on behalf of our stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if we declare a cash dividend, our stockholders who have not "opted out" of the DRIP by the dividend record date will have their cash dividend automatically reinvested into additional shares of MSCC common stock. The share requirements of the DRIP may be satisfied through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares will be valued based upon the final closing price of MSCC's common stock on a valuation date determined for each dividend by our Board of Directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs. Our DRIP is administered by our transfer agent on behalf of our record holders and participating brokerage firms. Brokerage firms and other financial intermediaries may decide not to participate in our DRIP but may provide a similar dividend reinvestment plan for their clients.

**SALES OF UNREGISTERED SECURITIES**

During the year ended December 31, 2022, we issued a total of 625,196 shares of our common stock under the DRIP. These issuances were not subject to the registration requirements of the Securities Act of 1933, as amended. The aggregate value of the shares of our common stock issued under the DRIP during 2022 was $24.1 million.

**PURCHASES OF EQUITY SECURITIES**

Upon vesting of restricted stock awarded pursuant to our employee equity compensation plan, shares may be withheld to meet applicable tax withholding requirements. Any withheld shares are treated as common stock purchases by the Company in our consolidated financial statements as they reduce the number of shares received by employees upon vesting (see "Purchase of vested stock for employee payroll tax withholding" in the consolidated statements of changes in net assets for share amounts withheld).

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**STOCK PERFORMANCE GRAPH**

The following graph compares the stockholder return on our common stock from October 5, 2007 to December 31, 2022 with the S&P 500 Index, the Russell 2000 Index, the KBW Regional Bank Index and the S&P BDC Index. This comparison assumes $100.00 was invested on October 5, 2007 (the date our common stock began to trade in connection with our initial public offering) in our common stock and in the comparison groups and assumes the reinvestment of all cash dividends prior to any tax effect. The comparisons in the graph below are based on historical data and are not intended to forecast the possible future performance of our common stock.

**COMPARISON OF STOCKHOLDER RETURN**<sup>(1)</sup>

**Among Main Street Capital Corporation, the S&P 500 Index, the Russell 2000 Index, the KBW**

**Regional Bank Index, the Main Street Peer Group**<sup>(2)(3)</sup> **and the S&P BDC Index**<sup>(3)</sup>

**(For the Period October 5, 2007 to December 31, 2022)**

**TOTAL RETURN PERFORMANCE SINCE IPO**

![main-20221231_g1.jpg](main-20221231_g1.jpg)

______________________

(1)Total return includes reinvestment of dividends through December 31, 2022.

(2)The Main Street Peer Group is composed of Ares Capital Corporation, Barings BDC Inc., Bain Capital Specialty Finance Inc., Blackrock Capital Investment Corp., Crescent Capital BDC Inc., Carlyle Secured Lending Inc., Capital Southwest Corporation, Fidus Investment Corp., FS KKR Capital Corp., Gladstone Investment Corporation, Golub Capital BDC Inc., Gladstone Capital Corporation, Goldman Sachs BDC Inc., Horizon Technology Finance Corp., Hercules Capital Inc., MidCap Financial Investment Corp., Monroe Capital Corp., New Mountain Finance Corp., Oaktree Specialty Lending Corp., OFS Capital Corp., Owl Rock Capital Corp., PennantPark Floating Rate Capital Ltd., PennantPark Investment Corp., Prospect Capital Corporation, Portman Ridge Finance Corp., Saratoga Investment Corp., Stellus Capital Investment Corp., SLR Investment Corp., BlackRock TCP Capital Corp, Triplepoint Venture Growth BDC Corp., Sixth Street Specialty Lending Inc. and White Horse Finance Inc.

(3)Beginning with the Form 10-K for our fiscal year ending December 31, 2023, the Main Street Peer Group will be removed from the comparison graph above and replaced by the S&P BDC Index, which we believe is a better representation of performance among our peers.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**Item 6. [Reserved.]**

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**Item 7. *Management's Discussion and Analysis of Financial Condition and Results of Operations***

*The following discussion should be read in conjunction with our consolidated financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K.*

*Statements we make in the following discussion which express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements that are subject to risks, uncertainties and assumptions. Our actual results, performance or achievements, or industry results, could differ materially from those we express in the following discussion as a result of a variety of factors, including the risks and uncertainties we have referred to under the headings "Cautionary Statement Concerning Forward-Looking Statements" and "Risk Factors" in Part I of this report.*

**INVESTMENT PORTFOLIO SUMMARY**

The following tables provide a summary of our investments in the LMM, Private Loan and Middle Market portfolios as of December 31, 2022 and 2021 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager which are discussed further below):

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2022** |
| | **LMM (a)** | **Private Loan** | **Middle Market** |
| | **(dollars in millions)** | **(dollars in millions)** | **(dollars in millions)** |
| Number of portfolio companies | 78 | 85 | 31 |
| Fair value | $2060.5 | $1471.5 | $329.1 |
| Cost | $1719.9 | $1500.3 | $401.7 |
| Debt investments as a % of portfolio (at cost) | 73.7% | 97.1% | 93.8% |
| Equity investments as a % of portfolio (at cost) | 26.3% | 2.9% | 6.2% |
| % of debt investments at cost secured by first priority lien | 99.1% | 99.6% | 98.8% |
| Weighted-average annual effective yield (b) | 12.3% | 11.6% | 11.0% |
| Average EBITDA (c) | $8.0 | $38.1 | $68.7 |

---

______________________

(a)At December 31, 2022, we had equity ownership in all of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 41%.

(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2022, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on our debt portfolio as of December 31, 2022 including debt investments on non-accrual status was 11.6% for our LMM portfolio, 11.2% for our Private Loan portfolio and 10.3% for our Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of our common stock will realize on its investment because it does not reflect changes in the market value of our stock, our utilization of debt capital in our capital structure, our expenses or any sales load paid by an investor.

(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including three LMM portfolio companies and two Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2021** | **As of December 31, 2021** | **As of December 31, 2021** |
| | **LMM (a)** | **Private Loan** | **Middle Market** |
| | **(dollars in millions)** | **(dollars in millions)** | **(dollars in millions)** |
| Number of portfolio companies | 73 | 75 | 36 |
| Fair value | $1716.4 | $1141.8 | $395.2 |
| Cost | $1455.7 | $1157.5 | $440.9 |
| Debt investments as a % of portfolio (at cost) | 70.9% | 95.7% | 93.3% |
| Equity investments as a % of portfolio (at cost) | 29.1% | 4.3% | 6.7% |
| % of debt investments at cost secured by first priority lien | 99.0% | 98.7% | 98.7% |
| Weighted-average annual effective yield (b) | 11.2% | 8.2% | 7.5% |
| Average EBITDA (c) | $6.2 | $41.3 | $76.0 |

---

______________________

(a)At December 31, 2021, we had equity ownership in all of our LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 40%.

(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2021, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on our debt portfolio as of December 31, 2021 including debt investments on non-accrual status was 10.6% for our LMM portfolio, 8.0% for our Private Loan portfolio and 6.9% for our Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of our common stock will realize on its investment because it does not reflect changes in the market value of our stock, our utilization of debt capital in our capital structure, our expenses or any sales load paid by an investor.

(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including three LMM portfolio companies, three Private Loan portfolio companies and one Middle Market portfolio company, as EBITDA is not a meaningful valuation metric for our investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

For the years ended December 31, 2022 and 2021, we achieved a total return on investments of 11.1% and 16.6%, respectively. Total return on investments is calculated using the interest, dividend, and fee income, as well as the realized and unrealized change in fair value of the Investment Portfolio for the specified period. Our total return on investments is not reflective of what an investor in shares of our common stock will realize on its investment because it does not reflect changes in the market value of our stock, our utilization of debt capital in our capital structure, our expenses or any sales load paid by an investor.

As of December 31, 2022, we had Other Portfolio investments in 14 companies, collectively totaling $116.3 million in fair value and $120.4 million in cost basis and which comprised 2.8% and 3.2% of our Investment Portfolio at fair value and cost, respectively. As of December 31, 2021, we had Other Portfolio investments in 13 companies, collectively totaling $166.1 million in fair value and $173.7 million in cost basis and which comprised 4.7% and 5.3% of our Investment Portfolio at fair value and cost, respectively.

As previously discussed, the External Investment Manager is a wholly-owned subsidiary that is treated as a portfolio investment. As of December 31, 2022, this investment had a fair value of $122.9 million and a cost basis of $29.5 million, which comprised 3.0% and 0.8% of our Investment Portfolio at fair value and cost, respectively. As of December 31, 2021, this investment had a fair value of $140.4 million and a cost basis of $29.5 million, which comprised 3.9% and 0.9% of our Investment Portfolio at fair value and cost, respectively.

**CRITICAL ACCOUNTING POLICIES**

The preparation of financial statements and related disclosures in conformity with generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. Critical accounting policies are

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

those that require management to make subjective or complex judgments about the effect of matters that are inherently uncertain and may change in subsequent periods. Changes that may be required in the underlying assumptions or estimates in these areas could have a material impact on our current and future financial condition and results of operations.

Management has discussed the development and selection of each critical accounting policy and estimate with the Audit Committee of the Board of Directors. Our critical accounting policies and estimates include the Investment Portfolio Valuation and Revenue Recognition policies described below. Our significant accounting policies are described in greater detail in *Note B — Summary of Significant Accounting Policies* to the consolidated financial statements included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

***Investment Portfolio Valuation***

The most significant determination inherent in the preparation of our consolidated financial statements is the valuation of our Investment Portfolio and the related amounts of unrealized appreciation and depreciation. We consider this determination to be a critical accounting estimate, given the significant judgments and subjective measurements required. As of both December 31, 2022 and 2021, our Investment Portfolio valued at fair value represented 97% of our total assets. We are required to report our investments at fair value. We follow the provisions of FASB ASC 820, *Fair Value Measurements and Disclosures* ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires us to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact. See *Note B.1. — Valuation of the Investment Portfolio* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K for a detailed discussion of our Investment Portfolio valuation process and procedures.

Due to the inherent uncertainty in the valuation process, our determination of fair value for our Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. We determine the fair value of each individual investment and record changes in fair value as unrealized appreciation or depreciation.

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which permits a BDC's board of directors to designate its executive officers or investment adviser as a valuation designee to determine the fair value for its investment portfolio, subject to the active oversight of the board. Our Board of Directors has approved policies and procedures pursuant to Rule 2a-5 (the "Valuation Procedures") and has designated a group of our executive officers to serve as the Board of Directors' valuation designee. We believe our Investment Portfolio as of December 31, 2022 and 2021 approximates fair value as of those dates based on the markets in which we operate and other conditions in existence on those reporting dates.

***Revenue Recognition***

*Interest and Dividend Income*

We record interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with our valuation policies, we evaluate accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if we otherwise do not expect the debtor to be able to service its debt obligation, we will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security's status significantly improves regarding the debtor's ability to service the debt obligation, or if a loan or debt security is sold or written off, we remove it from non-accrual status.

*Fee Income*

We may periodically provide services, including structuring and advisory services to our portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, fee income is

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into income over the life of the financing.

*Payment-in-Kind ("PIK") Interest and Cumulative Dividends*

We hold certain debt and preferred equity instruments in our Investment Portfolio that contain PIK interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed in *Note B.9. — Summary of Significant Accounting Policies — Income Taxes* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though we may not have collected the PIK interest and cumulative dividends in cash. We stop accruing PIK interest and cumulative dividends and write off any accrued and uncollected interest and dividends in arrears when we determine that such PIK interest and dividends in arrears are no longer collectible. For the years ended December 31, 2022, 2021 and 2020 (i) 1.4%, 2.6% and 2.8%, respectively, of our total investment income was attributable to PIK interest income not paid currently in cash and (ii) 0.5%, 0.6% and 0.8%, respectively, of our total investment income was attributable to cumulative dividend income not paid currently in cash.

**INVESTMENT PORTFOLIO COMPOSITION**

The following tables summarize the composition of our total combined LMM, Private Loan and Middle Market portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM, Private Loan and Middle Market portfolio investments as of December 31, 2022 and 2021 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager).

---

| | | |
|:---|:---|:---|
| **Cost:** | **December 31, 2022** | **December 31, 2021** |
| First lien debt | 85.0% | 82.5% |
| Equity | 14.2 | 16.2 |
| Second lien debt | 0.3 | 0.6 |
| Equity warrants | 0.2 | 0.3 |
| Other | 0.3 | 0.4 |
|  | 100.0% | 100.0% |

---

---

| | | |
|:---|:---|:---|
| **Fair Value:** | **December 31, 2022** | **December 31, 2021** |
| First lien debt | 75.2% | 74.3% |
| Equity | 24.1 | 24.6 |
| Second lien debt | 0.3 | 0.5 |
| Equity warrants | 0.1 | 0.2 |
| Other | 0.3 | 0.4 |
|  | 100.0% | 100.0% |

---

Our LMM, Private Loan and Middle Market portfolio investments carry a number of risks including: (1) investing in companies which may have limited operating histories and financial resources; (2) holding investments that generally are not publicly traded and which may be subject to legal and other restrictions on resale; and (3) other risks common to investing in below investment-grade debt and equity investments in our Investment Portfolio. Please see *Item 1A. Risk Factors — Risks Related to our Investments* contained in this Annual Report on Form 10-K for a more complete discussion of the risks involved with investing in our Investment Portfolio.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**PORTFOLIO ASSET QUALITY**

We utilize an internally developed investment rating system to rate the performance of each LMM, Private Loan and Middle Market portfolio company and to monitor our expected level of returns on each of our LMM, Private Loan and Middle Market investments in relation to our expectations for the portfolio company. The investment rating system takes into consideration various factors, including each investment's expected level of returns, the collectability of our debt investments and the ability to receive a return of the invested capital in our equity investments, comparisons to competitors and other industry participants, the portfolio company's future outlook and other factors that are deemed to be significant to the portfolio company.

As of December 31, 2022, our total Investment Portfolio had 12 investments on non-accrual status, which comprised 0.6% of its fair value and 3.7% of its cost. As of December 31, 2021, our total Investment Portfolio had nine investments on non-accrual status, which comprised 0.7% of its fair value and 3.3% of its cost.

The operating results of our portfolio companies are impacted by changes in the broader fundamentals of the United States economy. In periods during which the United States economy contracts, it is likely that the financial results of small to mid-sized companies, like those in which we invest, could experience deterioration or limited growth from current levels, which could ultimately lead to difficulty in meeting their debt service requirements, to an increase in defaults on our debt investments or in realized losses on our investments and to difficulty in maintaining historical dividend payment rates and unrealized appreciation on our equity investments. Consequently, we can provide no assurance that the performance of certain portfolio companies will not be negatively impacted by future economic cycles or other conditions, which could also have a negative impact on our future results.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS**

Set forth below is a comparison of the results of operations and changes in financial condition for the years ended December 31, 2022 and 2021. The comparison of, and changes between, the fiscal years ended December 31, 2021 and 2020 can be found within *Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations* included in Part II of our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which is incorporated herein by reference.

***Comparison of the years ended December 31, 2022 and 2021***

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** | **Net Change** | **Net Change** |
| | **2022** | **2021** | **Amount** | **%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Total investment income | $376860 | $289047 | $87813 | 30% |
| Total expenses | (131533) | (106382) | (25151) | 24% |
| &nbsp;&nbsp;&nbsp;Net investment income | 245327 | 182665 | 62662 | 34% |
| Net realized gain (loss) from investments | (5212) | 45336 | (50548) | NM |
| Net unrealized appreciation from investments | 24816 | 135624 | (110808) | NM |
| Income tax provision | (23325) | (32863) | 9538 | NM |
| &nbsp;&nbsp;&nbsp;Net increase in net assets resulting from operations | $241606 | $330762 | $(89156) | (27)% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br>December 31,** | **Year Ended <br>December 31,** | **Net Change** | **Net Change** |
| | **2022** | **2021** | **Amount** | **%** |
| | **(dollars in thousands, except per share amounts)** | **(dollars in thousands, except per share amounts)** | **(dollars in thousands, except per share amounts)** | **(dollars in thousands, except per share amounts)** |
| Net investment income | $245327 | $182665 | $62662 | 34% |
| Share-based compensation expense | 13629 | 10887 | 2742 | 25% |
| Deferred compensation expense (benefit) | (1434) | 1190 | (2624) | NM |
| Distributable net investment income (a) | $257522 | $194742 | $62780 | 32% |
| Net investment income per share—Basic and diluted | $3.29 | $2.65 | $0.64 | 24% |
| Distributable net investment income per share—Basic and diluted (a) | $3.46 | $2.82 | $0.64 | 23% |

---

______________________

NM *—* Net Change % not meaningful

(a)Distributable net investment income is net investment income as determined in accordance with U.S. GAAP, excluding the impacts of share-based compensation expense and deferred compensation expense or benefit. We believe presenting distributable net investment income and the related per share amounts is useful and appropriate supplemental disclosure for analyzing our financial performance since share-based compensation does not require settlement in cash and deferred compensation expense or benefit does not result in a net cash impact to Main Street upon settlement. However, distributable net investment income is a non-U.S. GAAP measure and should not be considered as a replacement for net investment income or other earnings measures presented in accordance with U.S. GAAP and should be reviewed only in connection with such U.S. GAAP measures in analyzing our financial performance. A reconciliation of net investment income in accordance with U.S. GAAP to distributable net investment income is detailed in the table above.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

*Investment Income*

Total investment income for the year ended December 31, 2022 was $376.9 million, a 30% increase from the $289.0 million of total investment income for the prior year. The following table provides a summary of the changes in the comparable period activity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Net Change** | **Net Change** | |
| | **2022** | **2021** | **Amount** | **%** | |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | |
| Interest income | $284746 | $193667 | $91079 | 47% | (a) |
| Dividend income | 76375 | 81153 | (4778) | (6)% | (b) |
| Fee income | 15739 | 14227 | 1512 | 11% | (c) |
| &nbsp;&nbsp;Total investment income | $376860 | $289047 | $87813 | 30% | (d) |

---

______________________

(a)The increase in interest income was primarily due to (i) higher average levels of Investment Portfolio debt investments and (ii) higher floating interest rates on Investment Portfolio debt investments based upon the increase in the market index rates for these floating rate investments, which are primarily London Interbank Offered Rate ("LIBOR") and the Secured Overnight Financing Rate ("SOFR"). These increases were partially offset by a $1.2 million decrease in accelerated, prepayment, repricing and other activity related to certain Investment Portfolio debt investments.

(b)The decrease in dividend income from Investment Portfolio equity investments was primarily a result of an $11.3 million decrease in dividend income considered to be less consistent or non-recurring, partially offset by increased dividend income from certain of our portfolio companies resulting from the improved operating results, financial condition and liquidity positions.

(c)The increase in fee income was primarily related to (i) a $0.6 million increase related to higher originations of Investment Portfolio investments, as discussed above, and (ii) a $0.9 million increase from refinancing and prepayment of debt investments.

(d)The increase in total investment income includes a net reduction of $12.5 million in the impact of certain income considered less consistent or non-recurring, including (i) an $11.3 million decrease in dividend income and (ii) a $1.2 million decrease in accelerated prepayment, repricing and other activity related to certain Investment Portfolio debt investments.

*Expenses*

Total expenses for the year ended December 31, 2022 were $131.5 million, a 24% increase from $106.4 million in the prior year. The following table provides a summary of the changes in the comparable period activity.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Net Change** | **Net Change** | **Net Change** |
| | **2022** | **2021** | **Amount** | **%** | **%** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Cash compensation | $37977 | $33002 | $4975 | 15% | (a) |
| Deferred compensation plan expense (benefit) | (1434) | 1440 | (2874) | (200)% | (b) |
| Compensation | 36543 | 34442 | 2101 | 6% |  |
| General and administrative | 16050 | 12494 | 3556 | 28% |  |
| Interest | 78276 | 58836 | 19440 | 33% | (c) |
| Share-based compensation | 13629 | 10887 | 2742 | 25% |  |
| Gross expenses | 144498 | 116659 | 27839 | 24% |  |
| Expenses allocated to the External Investment Manager | (12965) | (10277) | (2688) | 26% |  |
| Total expenses | $131533 | $106382 | $25151 | 24% |  |

---

______________________

(a)The increase in cash compensation expense was primarily related to increased base compensation rates, incentive compensation accruals and headcount.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

(b)The change in the non-cash deferred compensation plan expense (benefit) was due to the reduction to compensation expense resulting from a decrease in the fair value of deferred compensation plan assets and corresponding liabilities during 2022 compared to an increase in such fair values in 2021.

(c)The increase in interest expense was primarily related to increased borrowings to support our investment activity, including borrowings under our Credit Facilities (as defined in *Liquidity and Capital Resources* below) and an aggregate of $100.0 million in principal amount of our December 2025 Notes issued in December 2022 (as defined in *Liquidity and Capital Resources* below), partially offset by the repayment of $185.0 million in principal amount of our December 2022 Notes (as defined in *Liquidity and Capital Resources* below).

*Net Investment Income*

Net investment income for the year ended December 31, 2022 increased 34% to $245.3 million, or $3.29 per share, compared to net investment income of $182.7 million, or $2.65 per share, in 2021. The increase in net investment income was principally attributable to the increase in total investment income, partially offset by higher operating expenses, both as discussed above. The increase in net investment income per share reflects these changes and the impact of the increase in weighted average shares outstanding for the year ended December 31, 2022, primarily due to (i) shares issued through our public offering in August 2022 and our at-the-market equity program (the "ATM Program"), (ii) shares issued through our equity incentive plans and (iii) shares issued through our dividend reinvestment plan. The increase in net investment income on a per share basis includes (i) a $0.18 per share decrease in investment income considered less consistent or non-recurring, partially offset by a decrease in deferred compensation expense of $0.04 per share resulting from the comparable period difference in the fair value of deferred compensation plan assets and corresponding liabilities, both of which are discussed above.

*Distributable Net Investment Income*

Distributable net investment income for the year ended December 31, 2022 increased 32% to $257.5 million, or $3.46 per share, compared with $194.7 million, or $2.82 per share, in 2021. The increase in distributable net investment income was primarily due to the increased level of total investment income, partially offset by higher operating expenses, excluding the impact of share-based compensation expense and deferred compensation expense (benefit), both as discussed above. The increase in distributable net investment income per share reflects the net impact of the increase in weighted average shares outstanding for the year ended December 31, 2022, primarily due to (i) shares issued through our public offering in August 2022 and our ATM Program, (ii) shares issued through our equity incentive plans and (iii) shares issued through our dividend reinvestment plan. The increase in distributable net investment income on a per share basis includes a $0.18 per share decrease in investment income considered less consistent or non-recurring, as discussed above.

*Net Realized Gain (Loss)*

The following table provides a summary of the primary components of the total net realized loss on investments of $5.2 million for the year ended December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| | **Full Exits** | **Full Exits** | **Partial Exits** | **Partial Exits** | **Restructures** | **Restructures** | **Other (a)** | **Total** |
| | **Net Gain/(Loss)** | **# of Investments** | **Net Gain/(Loss)** | **# of Investments** | **Net Gain/(Loss)** | **# of Investments** | **Net Gain/(Loss)** | **Net Gain/(Loss)** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| LMM portfolio | $— |  | $1219 | 1 | $(5822) | 1 | $(774) | $(5377) |
| Private Loan portfolio | 10415 | 4 |  |  | (8395) | 2 | 313 | 2333 |
| Middle Market portfolio | (6265) | 3 |  |  |  |  | 59 | (6206) |
| Other Portfolio |  |  | 3119 | 2 |  |  | 875 | 3994 |
| Short-term portfolio |  |  |  |  |  |  | 44 | 44 |
| Total net realized gain (loss) | $4150 | 7 | $4338 | 3 | $(14217) | 3 | $517 | $(5212) |

---

(a)Other activity includes realized gains and losses from transactions involving 17 portfolio companies which are not considered to be significant individually or in the aggregate.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

The following table provides a summary of the primary components of the total net realized gain on investments of $45.3 million for the year ended December 31, 2021:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| | **Full Exits** | **Full Exits** | **Partial Exits** | **Partial Exits** | **Restructures** | **Restructures** | **Other (a)** | **Total** |
| | **Net Gain/(Loss)** | **# of Investments** | **Net Gain/(Loss)** | **# of Investments** | **Net Gain/(Loss)** | **# of Investments** | **Net Gain/(Loss)** | **Net Gain/(Loss)** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| LMM portfolio | $51019 | 7 | $— |  | $(10925) | 1 | $(493) | $39601 |
| Private Loan portfolio | 5547 | 2 |  |  |  |  | 45 | 5592 |
| Middle Market portfolio | (3749) | 3 | 6153 | 1 | (4528) | 1 | 464 | (1660) |
| Other Portfolio | (4449) | 1 | 5920 | 4 |  |  | 351 | 1822 |
| Short-term portfolio |  |  |  |  |  |  | (19) | (19) |
| Total net realized gain (loss) | $48368 | 13 | $12073 | 5 | $(15453) | 2 | $348 | $45336 |

---

(a)Other activity includes realized gains and losses from transactions involving 27 portfolio companies which are not considered to be significant individually or in the aggregate.

*Net Unrealized Appreciation (Depreciation)*

The following table provides a summary of the total net unrealized appreciation of $24.8 million for the year ended December 31, 2022:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
| | **LMM (a)** | **Private<br>Loan** | **Middle<br>Market** | **Other** | | **Total** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period | $6055 | $(2008) | $4966 | $(3702) |  | $5311 |
| Net unrealized appreciation (depreciation) relating to portfolio investments | $73840 | $(10545) | $(31836) | $(11955) | (b) | $19505 |
| Total net unrealized appreciation (depreciation) relating to portfolio investments | $79895 | $(12553) | $(26870) | $(15657) |  | $24816 |

---

______________________

(a)Includes unrealized appreciation on 38 LMM portfolio investments and unrealized depreciation on 28 LMM portfolio investments.

(b)Other includes (i) $17.5 million of unrealized depreciation relating to the External Investment Manager and (ii) $1.7 million of net unrealized depreciation relating to the assets of the deferred compensation plan, partially offset by $7.2 million of net unrealized appreciation relating to the Other Portfolio.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

The following table provides a summary of the total net unrealized appreciation of $135.6 million for the year ended December 31, 2021:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
| | **LMM (a)** | **Private<br>Loan** | **Middle<br>Market** | **Other** | | **Total** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Accounting reversals of net unrealized (appreciation) depreciation recognized in prior periods due to net realized (gains / income) losses recognized during the current period | $(27451) | $(3698) | $1501 | $4181 |  | $(25467) |
| Net unrealized appreciation (depreciation) relating to portfolio investments | 107187 | 17153 | (3679) | 40430 | (b) | 161091 |
| Total net unrealized appreciation (depreciation) relating to portfolio investments | $79736 | $13455 | $(2178) | $44611 |  | $135624 |

---

______________________

(a)Includes unrealized appreciation on 43 LMM portfolio investments and unrealized depreciation on 23 LMM portfolio investments.

(b)Includes (i) $23.7 million of unrealized appreciation relating to the External Investment Manager and (ii) $16.3 million of net unrealized appreciation relating to the Other Portfolio.

*Income Tax Benefit (Provision)*

The income tax provision for the year ended December 31, 2022 of $23.3 million principally consisted of (i) a deferred tax provision of $18.1 million, which is primarily the result of the net activity relating to our portfolio investments held in our Taxable Subsidiaries, including changes in loss carryforwards, changes in net unrealized appreciation/depreciation and other temporary book-tax differences, and (ii) a current tax provision of $5.2 million related to a $2.8 million provision for excise tax on our estimated undistributed taxable income and a $2.4 million provision for current U.S. federal and state income taxes.

The income tax provision for the year ended December 31, 2021 of $32.9 million principally consisted of (i) a deferred tax provision of $27.1 million and (ii) a current tax provision of $5.7 million primarily related to a $3.1 million provision for current U.S. federal and state income taxes and a $2.6 million provision for excise tax on our estimated undistributed taxable income.

*Net Increase in Net Assets Resulting from Operations*

The net increase in net assets resulting from operations for the year ended December 31, 2022 was $241.6 million, or $3.24 per share, compared with $330.8 million, or $4.80 per share, during the year ended December 31, 2021. The tables above provide a summary of the reasons for the change in net assets resulting from operations for the year ended December 31, 2022 as compared to the year ended December 31, 2021.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

***LIQUIDITY AND CAPITAL RESOURCES***

*Cash Flows*

For the year ended December 31, 2022, we realized a net increase in cash and cash equivalents of $16.5 million, which is the result of $246.9 million of cash used in our operating activities and $263.4 million of cash provided by our financing activities.

The $246.9 million of cash used in our operating activities resulted primarily from (i) cash uses totaling $1,152.6 million for the funding of new and follow-on portfolio company investments and settlement of accruals for portfolio investments existing as of December 31, 2021 and (ii) cash payments of $14.2 million related to changes in other assets and liabilities, partially offset by (i) cash proceeds totaling $680.0 million from the sales and repayments of debt investments and sales of and return on capital from equity investments and (ii) cash flows that we generated from the operating profits earned totaling $239.9 million, which is our distributable net investment income, excluding the non-cash effects of the accretion of unearned income, payment-in-kind interest income, cumulative dividends and the amortization expense for deferred financing costs.

The $263.4 million of cash provided by our financing activities principally consisted of (i) $287.0 million in net proceeds from our multi-year corporate-level revolving credit facility (the "Corporate Facility") and the SPV Facility (together, the "Credit Facilities"), (ii) $265.6 million in net cash proceeds from equity offerings from our ATM Program and Equity Offering (both as described below) and direct stock purchase plan and (iii) $100.0 million in proceeds from the initial issuance of the December 2025 Notes (as defined below), partially offset by (i) $194.2 million in cash dividends paid to stockholders, (ii) $185.0 million for the redemption of the December 2022 Notes (as defined below), (iii) $5.1 million for payments of deferred debt issuance costs, SBIC debenture fees and other costs, net of debt issuance premiums, and (iv) $4.9 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock.

For the year ended December 31, 2021, we experienced a net increase in cash and cash equivalents in the amount of $0.7 million, which is the net result of $515.4 million of cash used in our operating activities and $516.1 million of cash provided by our financing activities.

The $515.4 million of cash used in our operating activities resulted primarily from cash uses totaling $1,763.8 million for the funding of new and follow-on portfolio company investments and settlement of accruals for portfolio investments existing as of December 31, 2020, partially offset by (i) cash proceeds totaling $1,054.5 million from the sales and repayments of debt investments and sales of and return on capital from equity investments, (ii) cash flows generated from the operating profits earned totaling $171.7 million, which is our distributable net investment income, excluding the non-cash effects of the accretion of unearned income, payment-in-kind interest income, cumulative dividends and the amortization expense for deferred financing costs, and (iii) cash proceeds of $22.2 million related to changes in other assets and liabilities.

The $516.1 million of cash provided by our financing activities principally consisted of (i) $500.0 million in proceeds from the initial and follow-on issuance of the July 2026 Notes (as defined below), (ii) $98.9 million in net cash proceeds from our ATM Program (described below) and direct stock purchase plan, (iii) $80.2 million in cash proceeds from the issuance of SBIC debentures and (iv) $51.0 million in net proceeds from the Corporate Facility, partially offset by (i) $160.5 million in cash dividends paid to stockholders, (ii) $40.0 million in repayment of SBIC debentures, (iii) $8.2 million for debt issuance premiums, net of payments of deferred debt issuance costs, SBIC debenture fees and other costs, and (iv) $5.3 million for purchases of vested restricted stock from employees to satisfy their tax withholding requirements upon the vesting of such restricted stock.

*Capital Resources*

As of December 31, 2022, we had $49.1 million in cash and cash equivalents and $568.0 million of unused capacity under the Credit Facilities which we maintain to support our investment and operating activities. As of December 31, 2022, our NAV totaled $2,108.6 million, or $26.86 per share.

As of December 31, 2022, we had $407.0 million outstanding and $513.0 million of undrawn commitments under the Corporate Facility, and $200.0 million outstanding and $55.0 million of undrawn commitments under our SPV Facility, both of which we estimated approximated fair value. Availability under the Credit Facilities are both subject to certain

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

borrowing base limitations, various covenants, reporting requirements and other customary requirements for similar credit facilities. For further information on our Credit Facilities, including key terms and financial covenants, refer to *Note E — Debt* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

Through the Funds, we have the ability to issue SBIC debentures guaranteed by the SBA at favorable interest rates and favorable terms and conditions. Under existing SBIC regulations, SBA-approved SBICs under common control have the ability to issue debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. Under existing SBA-approved commitments, we had $350.0 million of outstanding SBIC debentures guaranteed by the SBA as of December 31, 2022 through our wholly-owned SBICs, which bear a weighted-average annual fixed interest rate of 2.9%, paid semiannually, and mature ten years from issuance. The first maturity related to our SBIC debentures occurs in March 2023, and the weighted-average remaining duration is 5.1 years as of December 31, 2022. Debentures guaranteed by the SBA have fixed interest rates that equal prevailing 10-year Treasury Note rates plus a market spread and have a maturity of ten years with interest payable semiannually. The principal amount of the debentures is not required to be paid before maturity, but may be pre-paid at any time with no prepayment penalty. We expect to maintain SBIC debentures under the SBIC program in the future, subject to periodic repayments and borrowings, in an amount up to the regulatory maximum amount for affiliated SBIC funds.

In November 2017, we issued $185.0 million in aggregate principal amount of 4.50% unsecured notes due December 1, 2022 (the "December 2022 Notes"). In December 2022, we repaid the entire principal amount of the outstanding December 2022 Notes. The outstanding aggregate principal amount of the December 2022 Notes was $185.0 million as of December 31, 2021.

In April 2019, we issued $250.0 million in aggregate principal amount of 5.20% unsecured notes due May 1, 2024 (the "May 2024 Notes"). In December 2019 and July 2020, we issued an additional $75.0 million and $125.0 million, respectively, in aggregate principal amount of the May 2024 Notes. The outstanding aggregate principal amount of the May 2024 Notes was $450.0 million as of both December 31, 2022 and December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In January 2021, we issued $300.0 million in aggregate principal amount of 3.00% unsecured notes due July 14, 2026 (the "July 2026 Notes"). In October 2021, we issued an additional $200.0 million in aggregate principal amount of the July 2026 Notes. The outstanding aggregate principal amount of the July 2026 Notes was $500.0 million as of both December 31, 2022 and December 31, 2021.

In December 2022, we issued $100.0 million in aggregate principal amount of 7.84% Series A unsecured notes due December 23, 2025 (the "December 2025 Notes"), all of which remained outstanding as of December 31, 2022.

We maintain a program with certain selling agents through which we can sell shares of our common stock by means of at-the-market offerings from time to time (the "ATM Program").

During the year ended December 31, 2022, we sold 5,407,382 shares of our common stock at a weighted-average price of $39.29 per share and raised $212.4 million of gross proceeds under the ATM Program. Net proceeds were $209.9 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2022, sales transactions representing 43,217 shares had not settled and are not included in shares issued and outstanding on the face of the Consolidated Balance Sheets but are included in the weighted average shares outstanding in the Consolidated Statements of Operations and in the shares used to calculate the NAV per share. In March 2022, we entered into new distribution agreements to sell up to 15,000,000 shares through the ATM Program. As of December 31, 2022, 10,462,684 shares remained available for sale under the ATM Program.

In August 2022, we completed a public equity offering (the "Equity Offering") of 1,345,500 shares of common stock at a public offering price of $42.85 per share, including the underwriters' full exercise of their option to purchase 175,500 additional shares, resulting in total net proceeds, including exercise of the underwriters' option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $55.1 million.

During the year ended December 31, 2021, we sold 2,332,795 shares of our common stock at a weighted-average price of $42.71 per share and raised $99.6 million of gross proceeds under the ATM Program. Net proceeds were $98.4 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2021, sales transactions representing 36,136 shares had not settled and are not included in shares issued and outstanding on the face of the Consolidated Balance Sheets but are included in the weighted average shares outstanding in the Consolidated Statements of Operations and in the shares used to calculate the NAV per share.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

We anticipate that we will continue to fund our investment activities through existing cash and cash equivalents, cash flows generated through our ongoing operating activities, utilization of available borrowings under our Credit Facilities, and a combination of future issuances of debt and equity capital. Our primary uses of funds will be investments in portfolio companies, operating expenses, cash distributions to holders of our common stock and repayments of note and debenture obligations as they come due.

We periodically invest excess cash balances into marketable securities and idle funds investments. The primary investment objective of marketable securities and idle funds investments is to generate incremental cash returns on excess cash balances prior to utilizing those funds for investment in our LMM, Private Loan and Middle Market portfolio investments. Marketable securities and idle funds investments generally consist of debt investments, independently rated debt investments, certificates of deposit with financial institutions, diversified bond funds and publicly traded debt and equity investments. We may also invest in short-term portfolio investments that are atypical of our LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital and are more liquid than investments within the other portfolios. Short-term portfolio investments consist primarily of investments in secured debt investments and independently rated debt investments.

If our common stock trades below our NAV per share, we will generally not be able to issue additional common stock at the market price, unless our stockholders approve such a sale and our Board of Directors makes certain determinations. We did not seek stockholder authorization to sell shares of our common stock below the then current NAV per share of our common stock at our 2022 Annual Meeting of Stockholders, and have not sought such authorization since 2012, because our common stock price per share has generally traded significantly above the NAV per share of our common stock since 2011. We would therefore need future approval from our stockholders to issue shares below the then current NAV per share.

In order to satisfy the Code requirements applicable to a RIC, we intend to distribute to our stockholders, after consideration and application of our ability under the Code to carry forward certain excess undistributed taxable income from one tax year into the next tax year, substantially all of our taxable income.

In addition, as a BDC, we generally are required to meet a coverage ratio, or BDC asset coverage ratio, of total assets to total senior securities, which include borrowings and any preferred stock we may issue in the future, of at least 200% (or 150% if certain requirements are met). In January 2008, we received an exemptive order from the SEC to exclude SBA-guaranteed debt securities issued by the Funds and any other wholly-owned subsidiaries of ours which operate as SBICs from the BDC asset coverage ratio which, in turn, enables us to fund more investments with debt capital. In May 2022, our stockholders also approved the application of the reduced BDC asset coverage ratio. As a result, the BDC asset coverage ratio applicable to us decreased from 200% to 150% effective May 3, 2022. As of December 31, 2022, our BDC asset coverage ratio was 227%.

Although we have been able to secure access to additional liquidity, including through the Credit Facilities, public and private debt issuances, leverage available through the SBIC program and equity offerings, there is no assurance that debt or equity capital will be available to us in the future on favorable terms, or at all.

*Recently Issued or Adopted Accounting Standards*

From time to time, new accounting pronouncements are issued by the FASB or other standards setting bodies that are adopted by us as of the specified effective date. We believe that the impact of recently issued standards and any that are not yet effective will not have a material impact on our consolidated financial statements upon adoption. For a description of recently issued or adopted accounting standards, see *Note B.13. — Recently Issued or Adopted Accounting Standards* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

*Inflation*

Inflation has not historically had a significant effect on our results of operations in any of the reporting periods presented herein. However, our portfolio companies have experienced, specifically including over the last few years, as a result of recent geopolitical events, supply chain and labor issues, and may continue to experience, the increasing impacts of inflation on their operating results, including periodic escalations in their costs for labor, raw materials and third-party services and required energy consumption. These issues and challenges related to inflation are receiving significant attention from our investment teams and the management teams of our portfolio companies as we work to manage these growing challenges. Prolonged or more severe impacts of inflation to our portfolio companies could continue to impact

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

their operating profits and, thereby, increase their borrowing costs, and as a result negatively impact their ability to service their debt obligations and/or reduce their available cash for distributions. In addition, these factors could have a negative impact on the fair value of our investments in these portfolio companies. The combined impacts of these impacts in turn could negatively affect our results of operations.

*Off-Balance Sheet Arrangements*

We may be a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments include commitments to extend credit and fund equity capital and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the Consolidated Balance Sheets. At December 31, 2022, we had a total of $274.4 million in outstanding commitments comprised of (i) 83 investments with commitments to fund revolving loans that had not been fully drawn or term loans with additional commitments not yet funded and (ii) ten investments with equity capital commitments that had not been fully called.

*Contractual Obligations*

As of December 31, 2022, the future fixed commitments for cash payments in connection with our SBIC debentures, the May 2024 Notes, the July 2026 Notes, the December 2025 Notes, and rent obligations under our office lease for each of the next five years and thereafter are as follows (dollars in thousands):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** | **2027** | **Thereafter**  | **Total**  |
| July 2026 Notes | $— | $— | $— | $500000 | $— | $— | $500000 |
| Interest due on July 2026 Notes | 15017 | 15000 | 15000 | 15000 |  |  | 60017 |
| May 2024 Notes |  | 450000 |  |  |  |  | 450000 |
| Interest due on May 2024 Notes | 23400 | 11700 |  |  |  |  | 35100 |
| SBIC debentures | 16000 | 63800 |  |  | 75000 | 195200 | 350000 |
| Interest due on SBIC debentures | 9960 | 8455 | 7228 | 7228 | 6512 | 9053 | 48436 |
| December 2025 Notes |  |  | 100000 |  |  |  | 100000 |
| Interest due on December 2025 Notes | 7840 | 7840 | 7753 |  |  |  | 23433 |
| Operating Lease Obligation (1) | 389 | 1020 | 1115 | 1135 | 1155 | 7673 | 12487 |
| Total | $72606 | $557815 | $131096 | $523363 | $82667 | $211926 | $1579473 |

---

______________________

(1)Operating Lease Obligation means a rent payment obligation under a lease classified as an operating lease and disclosed pursuant to ASC 842, as may be modified or supplemented.

As of December 31, 2022, we had $407.0 million in borrowings outstanding under our Corporate Facility, and the Corporate Facility is scheduled to mature in August 2027. As of December 31, 2022, we had $200.0 million in borrowings outstanding under our SPV Facility, and the SPV Facility is scheduled to mature in November 2027.

*Related Party Transactions and Agreements*

We have entered into agreements and transactions with the External Investment Manager, MSC Income and the Private Loan Fund, whereby we have made debt and equity investments and receive certain fees, expense reimbursements and investment income. See *Note D — External Investment Manager* and *Note L — Related Party Transactions* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K for additional information regarding these related party transactions and agreements.

In addition, we have a deferred compensation plan, whereby non-employee directors and certain key employees may defer receipt of some or all of their cash compensation and directors' fees, subject to certain limitations. See *Note L —* 

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

*Related Party Transactions* included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K for additional information regarding the deferred compensation plan.

*Recent Developments*

In January 2023, we expanded our total commitments under the Corporate Facility from $920.0 million to $980.0 million. The recent increase in total commitments was executed under the accordion feature of the Corporate Facility which allows for an increase up to $1.4 billion in total commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments.

In February 2023, we entered into a first supplement to the Master Note Purchase Agreement dated December 23, 2022, governing the issuance of $50.0 million in aggregate principal amount of 7.53% Series B unsecured notes (the "December 2025 Follow-On Notes") to qualified institutional investors in a private placement. The December 2025 Follow-On Notes were issued on February 2, 2023 and will mature on December 23, 2025 unless redeemed, purchased or prepaid prior to such date by us or our affiliates in accordance with their terms. Interest on the December 2025 Follow-On Notes will be due semiannually on June 23 and December 23. In addition, we are obligated to offer to repay the December 2025 Follow-On Notes at par plus accrued and unpaid interest if certain change in control events occur. The December 2025 Follow-On Notes are general unsecured obligations of ours that rank pari passu with all of our outstanding and future unsecured unsubordinated indebtedness.

In February 2023, we declared a supplemental cash dividend of $0.175 per share payable in March 2023. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that we declared of $0.225 per share for each of January, February and March 2023, or total regular monthly cash dividends of $0.675 per share for the first quarter of 2023.

In February 2023, we declared regular monthly dividends of $0.225 per share for each of April, May and June of 2023. These regular monthly dividends equal a total of $0.675 per share for the second quarter of 2023, representing a 4.7% increase from the regular monthly dividends paid in the second quarter of 2022. Including the regular monthly and supplemental dividends declared for the first and second quarters of 2023 we will have paid $36.645 per share in cumulative dividends since our October 2007 initial public offering.

**Item 7A. *Quantitative and Qualitative Disclosures about Market Risk***

We are subject to financial market risks, including changes in interest rates, and changes in interest rates may affect both our interest expense on the debt outstanding under our Credit Facilities and our interest income from portfolio investments. Our risk management systems and procedures are designed to identify and analyze our risk, to set appropriate policies and limits and to continually monitor these risks. Our investment income will be affected by changes in various interest rate indices, including LIBOR, SOFR and Prime rates, to the extent that any debt investments include floating interest rates. See *Risk Factors—Risks Related to our Investments — The interest rates of some of our investments are priced using a spread over LIBOR, which will be phased out in the future.*, *Risk Factors — Risks Related to our Business and Structure — We are subject to risks associated with the interest rate environment and changes in interest rates will affect our cost of capital, net investment income and the value of our investments.* and *Risk Factors — Risks Related to Leverage — Because we borrow money, the potential for gain or loss on amounts invested in us is magnified and may increase the risk of investing in us.* included in *Item 1A. Risk Factors* of this Annual Report on Form 10-K for more information regarding risks associated with our debt investments and borrowings that utilize LIBOR, SOFR or Prime as a reference rate.

The majority of our debt investments are made with either fixed interest rates or floating rates that are subject to contractual minimum interest rates for the term of the investment. As of December 31, 2022, 73% of our debt Investment Portfolio (at cost) bore interest at floating rates, 92% of which were subject to contractual minimum interest rates. As of December 31, 2022, 70% of our debt obligations bore interest at fixed rates. Our interest expense will be affected by changes in the published SOFR rate in connection with our Credit Facilities; however, the interest rates on our outstanding SBIC debentures, May 2024 Notes, July 2026 Notes and December 2025 Notes which collectively comprise the majority of our outstanding debt, are fixed for the life of such debt. As of December 31, 2022, we had not entered into any interest rate hedging arrangements. Due to our limited use of derivatives, we have claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act and, therefore, are not subject to registration or regulation as a pool operator under such Act. The Company intends to operate as a "limited derivatives user" under Rule 18f-4 under the 1940 Act.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

The following table shows the approximate annualized increase or decrease in the components of net investment income due to hypothetical base rate changes in interest rates, assuming no changes in our investments and borrowings as of December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Basis Point Change** | **Increase<br>(Decrease)<br>in Interest<br>Income** | **(Increase)<br>Decrease<br>in Interest<br>Expense** | **Increase<br>(Decrease) in Net<br>Investment<br>Income** | **Increase<br>(Decrease) in Net<br>Investment<br>Income per Share** |
| | **(dollars in thousands, except per share amounts)** | **(dollars in thousands, except per share amounts)** | **(dollars in thousands, except per share amounts)** | **(dollars in thousands, except per share amounts)** |
| (200) | $(46771) | $12747 | $(34024) | $(0.43) |
| (175) | (41022) | 11230 | (29792) | (0.38) |
| (150) | (35273) | 9712 | (25561) | (0.33) |
| (125) | (29524) | 8195 | (21329) | (0.27) |
| (100) | (23775) | 6677 | (17098) | (0.22) |
| (75) | (18026) | 5160 | (12866) | (0.16) |
| (50) | (12277) | 3642 | (8635) | (0.11) |
| (25) | (6528) | 2125 | (4403) | (0.06) |
| 25 | 4992 | (911) | 4081 | 0.05 |
| 50 | 10720 | (2428) | 8292 | 0.11 |
| 75 | 16469 | (3946) | 12523 | 0.16 |
| 100 | 22218 | (5463) | 16755 | 0.21 |
| 125 | 27967 | (6981) | 20986 | 0.27 |
| 150 | 33716 | (8498) | 25218 | 0.32 |
| 175 | 39465 | (10016) | 29449 | 0.38 |
| 200 | 45214 | (11533) | 33681 | 0.43 |

---

Although we believe that this analysis is indicative of the impact of interest rate changes to our Net Investment Income as of December 31, 2022, the analysis does not take into consideration future changes in the credit market, credit quality or other business or economic developments that could affect our Net Investment Income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above. The hypothetical results assume that all LIBOR, SOFR and Prime rate changes would be effective on the first day of the period. However, the contractual LIBOR, SOFR and Prime rate reset dates would vary throughout the period. The majority of our investments are based on contracts which reset quarterly, while our Credit Facilities reset monthly. The hypothetical results would also be impacted by the changes in the amount of debt outstanding under our Credit Facilities (with an increase (decrease) in the debt outstanding under the Credit Facilities resulting in an (increase) decrease in the hypothetical interest expense).

------

<u>[**Table of Contents**](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**Item 8. *Consolidated Financial Statements and Supplementary Data***

**Index to Consolidated Financial Statements**

---

| | |
|:---|:---|
| <u>[Reports of Independent Registered Public Accounting Firm](#i2fdd50ddfd9c475aa1777f627f470473_73)</u> (PCAOB ID Number 248) | [66](#i2fdd50ddfd9c475aa1777f627f470473_73) |
| <u>[Consolidated Balance Sheets—As of December 31, 2022 and December 31, 2021](#i2fdd50ddfd9c475aa1777f627f470473_76)</u> | [69](#i2fdd50ddfd9c475aa1777f627f470473_76) |
| <u>[Consolidated Statements of Operations—For the years ended December 31, 2022, 2021 and 2020](#i2fdd50ddfd9c475aa1777f627f470473_79)</u> | [70](#i2fdd50ddfd9c475aa1777f627f470473_79) |
| <u>[Consolidated Statements of Changes in Net Assets—For the years ended December 31, 2022, 2021 and 2020](#i2fdd50ddfd9c475aa1777f627f470473_82)</u> | [71](#i2fdd50ddfd9c475aa1777f627f470473_82) |
| <u>[Consolidated Statements of Cash Flows— For the years ended December 31, 2022, 2021 and 2020](#i2fdd50ddfd9c475aa1777f627f470473_85)</u> | [72](#i2fdd50ddfd9c475aa1777f627f470473_85) |
| <u>[Consolidated Schedule of Investments—December 31, 2022](#i2fdd50ddfd9c475aa1777f627f470473_88)</u> | [73](#i2fdd50ddfd9c475aa1777f627f470473_88) |
| <u>[Consolidated Schedule of Investments—December 31, 2021](#i2fdd50ddfd9c475aa1777f627f470473_91)</u> | [105](#i2fdd50ddfd9c475aa1777f627f470473_91) |
| <u>[Notes to Consolidated Financial Statements](#i2fdd50ddfd9c475aa1777f627f470473_94)</u> | [131](#i2fdd50ddfd9c475aa1777f627f470473_94) |
| <u>[Consolidated Schedules of Investments in and Advances to Affiliates— For the years ended December 31, 2022 and 2021](#i2fdd50ddfd9c475aa1777f627f470473_142)</u> | [177](#i2fdd50ddfd9c475aa1777f627f470473_142) |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**Report of Independent Registered Public Accounting Firm**

Board of Directors and Stockholders

Main Street Capital Corporation

Opinion on the financial statements

We have audited the accompanying consolidated balance sheets of Main Street Capital Corporation (a Maryland corporation) and subsidiaries (the "Company"), including the consolidated schedule of investments, as of December 31, 2022 and 2021, the related consolidated statements of operations, changes in net assets, and cash flows for each of the three years in the period ended December 31, 2022, and the related notes and financial statement schedule included under Item 15(2) (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the Company's internal control over financial reporting as of December 31, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"), and our report dated February 24, 2023 expressed an unqualified opinion.

Basis for opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company 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 in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit 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 opinion.

Critical audit matter

The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing a separate opinions on the critical audit matter or on the accounts or disclosures to which it relates.

*Fair Value Investments*

As described further in Note C to the financial statements, the Company's investments at fair value were $4,102,177 thousand at December 31, 2022, of which $4,100,273 thousand were categorized as Level 3 investments within the fair value hierarchy. Management's valuation techniques of these investments, for which there are no readily available market values, are measured using significant unobservable inputs and assumptions, and generally use valuation techniques such as the income and market approach. The significant unobservable inputs disclosed by management include, among others, weighted-average cost of capital ("WACC") inputs and market multiples for equity investments, and risk adjusted discount rates, percentage of expected principal recovery and third-party quotes for debt investments. Changes in these assumptions could have a significant impact on the determination of fair value. As such, we identified fair value of Level 3 investments measured using significant unobservable inputs and assumptions as a critical audit matter.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**Report of Independent Registered Public Accounting Firm**

The principal considerations for our determination that fair value of Level 3 investments measured using significant unobservable inputs is a critical audit matter are the significant management judgements used in developing complex valuation techniques and inherent estimation uncertainty. Auditing these investments requires a high degree of subjective auditor judgement, including use of valuation professionals with specialized skills and knowledge, to evaluate the reasonableness of unobservable inputs and assumptions.

Our audit procedures related to the critical audit matter included the following, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Testing the design and operating effectiveness of controls over management's process to determine investment fair value. Specifically, we identified and tested key attributes of management's fair value determination review. These attributes addressed the relevance, adequacy and appropriateness of the data, assumptions, valuation methods, and mathematical accuracy used to determine investment fair value as of the reporting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Evaluated the ability to estimate fair value by comparing prior period fair values to transaction prices of transactions occurring subsequent to the prior period valuation date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• With the assistance of internal valuation specialists to evaluate and test management's process to develop the valuation estimates, we performed substantive audit procedures to determine mathematical accuracy and to determine that the data, valuation methods, and significant unobservable inputs and assumptions used to determine investment fair value as of the Company's reporting date were reasonable. We tested certain key inputs/assumptions for a selection of investments, including the following, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• enterprise values,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• weighted-average cost of capital ("WACC"),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discount rates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• forecasted cash flows and long-term growth rates,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discount for lack of marketability,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• market multiples,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• weighting between valuation techniques,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risk adjusted discount factor,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• percentage of expected principal recovery, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• third party quotes, in conjunction with other inputs

In testing the above, we considered available third-party market information and published studies, current economic conditions and subsequent events, and other information that could be corroborated to source information.

/s/ GRANT THORNTON LLP

We have served as the Company's auditor since 2007.

Houston, Texas

February 24, 2023

Board of Directors and Stockholders

Main Street Capital Corporation

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**Report of Independent Registered Public Accounting Firm**

Opinion on internal control over financial reporting

We have audited the internal control over financial reporting of Main Street Capital Corporation (a Maryland corporation) and subsidiaries (the "Company") as of December 31, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in the 2013 Internal Control—Integrated Framework issued by COSO.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) ("PCAOB"), the consolidated financial statements of the Company as of and for the year ended December 31, 2022, and our report dated February 24, 2023 expressed an unqualified opinion on those financial statements.

Basis for opinion

The Company's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company 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 audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and limitations of internal control over financial reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Houston, Texas

February 24, 2023

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Balance Sheets**

**(dollars in thousands, except shares and per share amounts)**

---

| | | |
|:---|:---|:---|
| | **December 31, 2022** | **December 31, 2021** |
| **ASSETS** | | |
| &nbsp;&nbsp;Investments at fair value: |  |  |
| &nbsp;&nbsp;&nbsp;Control investments (cost: $1,270,802 and $1,107,597 as of December 31, 2022 and December 31, 2021, respectively) | $1703172 | $1489257 |
| &nbsp;&nbsp;&nbsp;Affiliate investments (cost: $635,536 and $578,539 as of December 31, 2022 and December 31, 2021, respectively) | 618359 | 549214 |
| &nbsp;&nbsp;&nbsp;Non-Control/Non-Affiliate investments (cost: $1,867,414 and $1,573,110 as of December 31, 2022 and December 31, 2021, respectively) | 1780646 | 1523360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investments (cost: $3,773,752 and $3,259,246 as of December 31, 2022 and December 31, 2021, respectively) | 4102177 | 3561831 |
| &nbsp;&nbsp;Cash and cash equivalents | 49121 | 32629 |
| &nbsp;&nbsp;Interest and dividend receivable and other assets | 82731 | 56488 |
| &nbsp;&nbsp;Receivable for securities sold | 381 | 35125 |
| &nbsp;&nbsp;Deferred financing costs (net of accumulated amortization of $10,603 and $9,462 as of December 31, 2022 and December 31, 2021, respectively) | 7475 | 4217 |
| &nbsp;&nbsp;&nbsp;Total assets | $4241885 | $3690290 |
| **LIABILITIES** |  |  |
| &nbsp;&nbsp;Credit Facilities | $607000 | $320000 |
| &nbsp;&nbsp;July 2026 Notes (par: $500,000 as of both December 31, 2022 and December 31, 2021) | 498136 | 497609 |
| &nbsp;&nbsp;May 2024 Notes (par: $450,000 as of both December 31, 2022 and December 31, 2021) | 450727 | 451272 |
| &nbsp;&nbsp;SBIC debentures (par: $350,000 ($16,000 due within one year) as of both December 31, 2022 and December 31, 2021) | 343914 | 342731 |
| &nbsp;&nbsp;December 2025 Notes (par: $100,000 as of December 31, 2022) | 99325 |  |
| &nbsp;&nbsp;December 2022 Notes (par: $185,000 as of December 31, 2021) |  | 184444 |
| &nbsp;&nbsp;Accounts payable and other liabilities | 52092 | 40469 |
| &nbsp;&nbsp;Payable for securities purchased |  | 5111 |
| &nbsp;&nbsp;Interest payable | 16580 | 14926 |
| &nbsp;&nbsp;Dividend payable | 17676 | 15159 |
| &nbsp;&nbsp;Deferred tax liability, net | 47849 | 29723 |
| &nbsp;&nbsp;&nbsp;Total liabilities | 2133299 | 1901444 |
| Commitments and contingencies (Note K) |  |  |
| **NET ASSETS** |  |  |
| &nbsp;&nbsp;Common stock, $0.01 par value per share (150,000,000 shares authorized; 78,463,599 and 70,700,885 shares issued and outstanding as of December 31, 2022 and December 31, 2021, respectively) | 784 | 707 |
| &nbsp;&nbsp;Additional paid-in capital | 2030531 | 1736346 |
| &nbsp;&nbsp;Total undistributed earnings | 77271 | 51793 |
| &nbsp;&nbsp;&nbsp;Total net assets | 2108586 | 1788846 |
| &nbsp;&nbsp;&nbsp;Total liabilities and net assets | $4241885 | $3690290 |
| **NET ASSET VALUE PER SHARE** | $26.86 | $25.29 |

---

The accompanying notes are an integral part of these consolidated financial statements

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Statements of Operations**

**(dollars in thousands, except shares and per share amounts)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| **INVESTMENT INCOME:** |  |  |  |
| &nbsp;&nbsp;Interest, fee and dividend income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | $155967 | $122277 | $81155 |
| &nbsp;&nbsp;&nbsp;Affiliate investments | 54963 | 51278 | 32435 |
| &nbsp;&nbsp;&nbsp;Non-Control/Non-Affiliate investments | 165930 | 115492 | 109024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total investment income | 376860 | 289047 | 222614 |
| **EXPENSES:** |  |  |  |
| &nbsp;&nbsp;Interest | (78276) | (58836) | (49587) |
| &nbsp;&nbsp;Compensation | (36543) | (34442) | (18981) |
| &nbsp;&nbsp;General and administrative | (16050) | (12494) | (12702) |
| &nbsp;&nbsp;Share-based compensation | (13629) | (10887) | (10828) |
| &nbsp;&nbsp;Expenses allocated to the External Investment Manager | 12965 | 10277 | 7429 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | (131533) | (106382) | (84669) |
| **NET INVESTMENT INCOME** | 245327 | 182665 | 137945 |
| **NET REALIZED GAIN (LOSS):** |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | (5822) | 6494 | (59594) |
| &nbsp;&nbsp;&nbsp;Affiliate investments | (3319) | 17181 | 2203 |
| &nbsp;&nbsp;&nbsp;Non-Control/Non-Affiliate investments | 3929 | 21661 | (58556) |
| &nbsp;&nbsp;&nbsp;Realized loss on extinguishment of debt |  |  | (534) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net realized gain (loss) | (5212) | 45336 | (116481) |
| **NET UNREALIZED APPRECIATION (DEPRECIATION):** |  |  |  |
| &nbsp;&nbsp;&nbsp;Control investments | 56682 | 99420 | 37924 |
| &nbsp;&nbsp;&nbsp;Affiliate investments | 10314 | 21989 | (29038) |
| &nbsp;&nbsp;&nbsp;Non-Control/Non-Affiliate investments | (42180) | 14215 | (14968) |
| &nbsp;&nbsp;&nbsp;SBIC debentures |  |  | 460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net unrealized appreciation (depreciation) | 24816 | 135624 | (5622) |
| **INCOME TAXES:** |  |  |  |
| &nbsp;&nbsp;&nbsp;Federal and state income, excise and other taxes | (5199) | (5732) | (590) |
| &nbsp;&nbsp;&nbsp;Deferred taxes | $(18126) | $(27131) | 14131 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax benefit (provision) | (23325) | (32863) | 13541 |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS** | $241606 | $330762 | $29383 |
| **NET INVESTMENT INCOME PER SHARE—BASIC AND DILUTED** | $3.29 | $2.65 | $2.10 |
| **NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE—BASIC AND DILUTED** | $3.24 | $4.80 | $0.45 |
| **WEIGHTED AVERAGE SHARES <br>OUTSTANDING—BASIC AND DILUTED** | 74482176 | 68960923 | 65705963 |

---

The accompanying notes are an integral part of these consolidated financial statements

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Statements of Changes in Net Assets**

**(dollars in thousands, except shares)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Common Stock** | **Common Stock** | **Additional<br>Paid-In<br>Capital** | **Total<br>Undistributed<br>Earnings** | **Total Net<br>Asset Value** |
| | **Number of<br>Shares** | **Par<br>Value** | **Additional<br>Paid-In<br>Capital** | **Total<br>Undistributed<br>Earnings** | **Total Net<br>Asset Value** |
| **Balances at December 31, 2019** | 64252937 | $643 | $1512435 | $23312 | $1536390 |
| Public offering of common stock, net of offering costs | 2662777 | 27 | 84354 |  | 84381 |
| Share-based compensation |  |  | 10828 |  | 10828 |
| Purchase of vested stock for employee payroll tax withholding | (89447) | (1) | (1890) |  | (1891) |
| Dividend reinvestment | 517796 | 4 | 16230 |  | 16234 |
| Amortization of directors' deferred compensation |  |  | 853 |  | 853 |
| Issuance of restricted stock, net of forfeited shares | 417969 | 4 | (4) |  |  |
| Dividends to stockholders |  |  | 385 | (161796) | (161411) |
| Reclassification for certain permanent book-to-tax differences |  |  | (7251) | 7251 |  |
| Net increase resulting from operations |  |  |  | 29383 | 29383 |
| **Balances at December 31, 2020** | 67762032 | $677 | $1615940 | $(101850) | $1514767 |
| Public offering of common stock, net of offering costs | 2345554 | 24 | 98865 |  | 98889 |
| Share-based compensation |  |  | 10887 |  | 10887 |
| Purchase of vested stock for employee payroll tax withholding | (134238) | (1) | (5302) |  | (5303) |
| Dividend reinvestment | 404384 | 4 | 16279 |  | 16283 |
| Amortization of directors' deferred compensation |  |  | 652 |  | 652 |
| Issuance of restricted stock, net of forfeited shares | 359289 | 3 | (3) |  |  |
| Dividends to stockholders |  |  | 406 | (178497) | (178091) |
| Reclassification for certain permanent book-to-tax differences |  |  | (1378) | 1378 |  |
| Net increase resulting from operations |  |  |  | 330762 | 330762 |
| **Balances at December 31, 2021** | 70737021 | $707 | $1736346 | $51793 | $1788846 |
| Public offering of common stock, net of offering costs | 6763166 | 67 | 265553 |  | 265620 |
| Share-based compensation |  |  | 13629 |  | 13629 |
| Purchase of vested stock for employee payroll tax withholding | (116177) | (1) | (4942) |  | (4943) |
| Dividend reinvestment | 625196 | 6 | 24125 |  | 24131 |
| Amortization of directors' deferred compensation |  |  | 519 |  | 519 |
| Issuance of restricted stock, net of forfeited shares | 497610 | 5 | (5) |  |  |
| Dividends to stockholders |  |  | 466 | (221288) | (220822) |
| Reclassification for certain permanent book-to-tax differences |  |  | (5160) | 5160 |  |
| Net increase resulting from operations |  |  |  | 241606 | 241606 |
| **Balances at December 31, 2022** | 78506816 | $784 | $2030531 | $77271 | $2108586 |

---

The accompanying notes are an integral part of these consolidated financial statements

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Statements of Cash Flows**

**(dollars in thousands)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2020** |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;Net increase in net assets resulting from operations | $241606 | $330762 | $29383 |
| &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;Investments in portfolio companies | (1152594) | (1763755) | (669007) |
| &nbsp;&nbsp;&nbsp;Proceeds from sales and repayments of debt investments in portfolio companies | 608330 | 920828 | 443573 |
| &nbsp;&nbsp;&nbsp;Proceeds from sales and return of capital of equity investments in portfolio companies | 71695 | 133644 | 34439 |
| &nbsp;&nbsp;&nbsp;Net unrealized (appreciation) depreciation | (24816) | (135624) | 5622 |
| &nbsp;&nbsp;&nbsp;Net realized (gain) loss | 5212 | (45336) | 116481 |
| &nbsp;&nbsp;&nbsp;Accretion of unearned income | (13413) | (15619) | (11756) |
| &nbsp;&nbsp;&nbsp;Payment-in-kind interest | (5352) | (7573) | (6225) |
| &nbsp;&nbsp;&nbsp;Cumulative dividends | (1770) | (1739) | (1791) |
| &nbsp;&nbsp;&nbsp;Share-based compensation expense | 13629 | 10887 | 10828 |
| &nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 2863 | 2998 | 2513 |
| &nbsp;&nbsp;&nbsp;Deferred tax (benefit) provision | 18126 | 27131 | (14131) |
| &nbsp;&nbsp;&nbsp;Changes in other assets and liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and dividend receivable and other assets | (28186) | (5504) | 4599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest payable | 1654 | 6268 | 1366 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities | 12254 | 20289 | (2846) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred fees and other | 3826 | 6970 | 2868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in operating activities | (246936) | (515373) | (54084) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;Proceeds from public offering of common stock, net of offering costs | 265620 | 98889 | 84381 |
| &nbsp;&nbsp;Proceeds from public offering of May 2024 Notes |  |  | 125000 |
| &nbsp;&nbsp;Proceeds from public offering of July 2026 Notes |  | 500000 |  |
| &nbsp;&nbsp;Proceeds from public offering of December 2025 Notes | 100000 |  |  |
| &nbsp;&nbsp;Dividends paid | (194174) | (160537) | (144462) |
| &nbsp;&nbsp;Proceeds from issuance of SBIC debentures |  | 80200 | 40000 |
| &nbsp;&nbsp;Repayments of SBIC debentures |  | (40000) | (42000) |
| &nbsp;&nbsp;Redemption of December 2022 Notes | (185000) |  |  |
| &nbsp;&nbsp;Proceeds from credit facility | 1032000 | 1100000 | 399000 |
| &nbsp;&nbsp;Repayments on credit facility | (745000) | (1049000) | (430000) |
| &nbsp;&nbsp;Debt issuance premiums (costs), net | (5075) | (8166) | 729 |
| &nbsp;&nbsp;Purchases of vested stock for employee payroll tax withholding | (4943) | (5303) | (1891) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 263428 | 516083 | 30757 |
| Net increase (decrease) in cash and cash equivalents | 16492 | 710 | (23327) |
| **CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD** | 32629 | 31919 | 55246 |
| **CASH AND CASH EQUIVALENTS AT END OF PERIOD** | $49121 | $32629 | $31919 |
| **Supplemental cash flow disclosures:** |  |  |  |
| Interest paid | $73635 | $50729 | $45582 |
| Taxes paid | $6596 | $2233 | $3136 |
| **Operating non-cash activities:** |  |  |  |
| Right-of-use assets obtained in exchange for operating lease liabilities | $5449 | $— | $— |
| **Non-cash financing activities:** |  |  |  |
| Value of shares issued pursuant to the DRIP | $24131 | $16283 | $16234 |

---

The accompanying notes are an integral part of these consolidated financial statements

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments** 

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Control Investments (5)** | | | | | | | | | | | | | | |
| **Analytical Systems Keco Holdings, LLC** |  | Manufacturer of Liquid and Gas Analyzers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 8/16/2019 |  |  | L+ | 10.00% |  | 8/16/2024 | $— | $(3) | $(3) |
|  |  |  | Secured Debt | (9) | 8/16/2019 |  | 14.13% | L+ | 10.00% |  | 8/16/2024 | 4665 | 4545 | 4545 |
|  |  |  | Preferred Member Units |  | 8/16/2019 | 3200 | 14.13% |  |  |  |  |  | 3200 |  |
|  |  |  | Preferred Member Units |  | 5/20/2021 | 2427 |  |  |  |  |  |  | 2427 | 3504 |
|  |  |  | Warrants | (27) | 8/16/2019 | 420 |  |  |  |  | 8/16/2029 |  | 316 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 10485 | 8046 |
| **ASC Interests, LLC** |  | Recreational and Educational Shooting Facility |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/31/2019 |  | 13.00% |  |  |  | 7/31/2024 | 400 | 400 | 400 |
|  |  |  | Secured Debt |  | 8/1/2013 |  | 13.00% |  |  |  | 7/31/2024 | 1650 | 1649 | 1649 |
|  |  |  | Member Units |  | 8/1/2013 | 1500 |  |  |  |  |  |  | 1500 | 800 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3549 | 2849 |
| **ATS Workholding, LLC** | (10) | Manufacturer of Machine Cutting Tools and Accessories |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) | 11/16/2017 |  | 5.00% |  |  |  | 8/16/2023 | 1901 | 1901 | 634 |
|  |  |  | Secured Debt | (14) | 11/16/2017 |  | 5.00% |  |  |  | 8/16/2023 | 3015 | 2857 | 1005 |
|  |  |  | Preferred Member Units |  | 11/16/2017 | 3725862 |  |  |  |  |  |  | 3726 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8484 | 1639 |
| **Barfly Ventures, LLC** | (10) | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 10/15/2020 |  | 7.00% |  |  |  | 10/31/2024 | 711 | 711 | 711 |
|  |  |  | Member Units |  | 10/26/2020 | 37 |  |  |  |  |  |  | 1584 | 3320 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2295 | 4031 |
| **Batjer TopCo, LLC** |  | HVAC Mechanical Contractor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 3/7/2022 |  |  |  |  |  | 3/31/2027 |  | (8) | (8) |
|  |  |  | Secured Debt | (25) | 3/7/2022 |  |  |  |  |  | 3/31/2027 |  |  |  |
|  |  |  | Secured Debt |  | 3/7/2022 |  | 11.00% |  |  |  | 3/31/2027 | 11025 | 10933 | 10933 |
|  |  |  | Preferred Stock | (8) | 3/7/2022 | 4073 |  |  |  |  |  |  | 4095 | 4095 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 15020 | 15020 |
| **Bolder Panther Group, LLC** |  | Consumer Goods and Fuel Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) (40) | 12/31/2020 |  | 13.39% | SF+ | 9.26% |  | 10/31/2027 | 99194 | 98576 | 99194 |
|  |  |  | Class B Preferred Member Units | (8) | 12/31/2020 | 140000 | 8.00% |  |  |  |  |  | 14000 | 31420 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 112576 | 130614 |
| **Brewer Crane Holdings, LLC** |  | Provider of Crane Rental and Operating Services |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  | Secured Debt | (9) | 1/9/2018 |  | 14.12% | L+ | 10.00% |  | 1/9/2023 | 5964 | 5964 | 5964 |
|  |  | Preferred Member Units | (8) | 1/9/2018 | 2950 |  |  |  |  |  |  | 4280 | 7080 |
|  |  |  |  |  |  |  |  |  |  |  |  | 10244 | 13044 |
| **Bridge Capital Solutions Corporation** | Financial Services and Cash Flow Solutions Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 7/25/2016 |  | 13.00% |  |  |  | 12/11/2024 | 8813 | 8813 | 8813 |
|  |  | Secured Debt | (30) | 7/25/2016 |  | 13.00% |  |  |  | 12/11/2024 | 1000 | 1000 | 1000 |
|  |  | Preferred Member Units | (8) (30) | 7/25/2016 | 17742 |  |  |  |  |  |  | 1000 | 1000 |
|  |  | Warrants | (27) | 7/25/2016 | 82 |  |  |  |  | 7/25/2026 |  | 2132 | 4340 |
|  |  |  |  |  |  |  |  |  |  |  |  | 12945 | 15153 |
| **Café Brazil, LLC** | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units | (8) | 6/9/2006 | 1233 |  |  |  |  |  |  | 1742 | 2210 |
| **California Splendor Holdings LLC** | Processor of Frozen Fruits |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 3/30/2018 |  | 13.75% | L+ | 10.00% |  | 7/29/2026 | 28000 | 27951 | 28000 |
|  |  | Preferred Member Units | (8) | 3/30/2018 | 6157 |  |  |  |  |  |  | 10775 | 25495 |
|  |  | Preferred Member Units | (8) | 7/31/2019 | 3671 | 15.00% |  |  | 15.00% |  |  | 3994 | 3994 |
|  |  |  |  |  |  |  |  |  |  |  |  | 42720 | 57489 |
| **CBT Nuggets, LLC** | Produces and Sells IT Training Certification Videos |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units | (8) | 6/1/2006 | 416 |  |  |  |  |  |  | 1300 | 49002 |
| **Centre Technologies Holdings, LLC** | Provider of IT Hardware Services and Software Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 1/4/2019 |  |  | L+ | 9.00% |  | 1/4/2026 |  |  |  |
|  |  | Secured Debt | (9) | 1/4/2019 |  | 13.13% | L+ | 9.00% |  | 1/4/2026 | 15030 | 14954 | 14954 |
|  |  | Preferred Member Units |  | 1/4/2019 | 13309 |  |  |  |  |  |  | 6122 | 8700 |
|  |  |  |  |  |  |  |  |  |  |  |  | 21076 | 23654 |
| **Chamberlin Holding LLC** | Roofing and Waterproofing Specialty Contractor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 2/26/2018 |  |  | L+ | 6.00% |  | 2/26/2023 |  |  |  |
|  |  | Secured Debt | (9) | 2/26/2018 |  | 12.13% | L+ | 8.00% |  | 2/26/2023 | 16945 | 16935 | 16945 |
|  |  | Member Units | (8) | 2/26/2018 | 4347 |  |  |  |  |  |  | 11440 | 22920 |
|  |  | Member Units | (8) (30) | 11/2/2018 | 1047146 |  |  |  |  |  |  | 1773 | 2710 |
|  |  |  |  |  |  |  |  |  |  |  |  | 30148 | 42575 |
| **Charps, LLC** | Pipeline Maintenance and Construction |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Unsecured Debt |  | 8/26/2020 |  | 10.00% |  |  |  | 1/31/2026 | 5694 | 4643 | 5694 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Preferred Member Units | (8) | 2/3/2017 | 1829 |  |  |  |  |  |  | 1963 | 13340 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6606 | 19034 |
| **Clad-Rex Steel, LLC** |  | Specialty Manufacturer of Vinyl-Clad Metal |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 10/28/2022 |  |  | SF+ | 9.00% |  | 1/15/2024 |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 12/20/2016 |  | 13.23% | SF+ | 9.00% |  | 1/15/2024 | 10480 | 10440 | 10440 |
|  |  |  | Secured Debt |  | 12/20/2016 |  | 10.00% |  |  |  | 12/20/2036 | 1049 | 1039 | 1039 |
|  |  |  | Member Units | (8) | 12/20/2016 | 717 |  |  |  |  |  |  | 7280 | 8220 |
|  |  |  | Member Units | (30) | 12/20/2016 | 800 |  |  |  |  |  |  | 210 | 610 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 18969 | 20309 |
| **CMS Minerals Investments** |  | Oil & Gas Exploration & Production |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) (30) | 4/1/2016 | 100 |  |  |  |  |  |  | 1304 | 1670 |
| **Cody Pools, Inc.** |  | Designer of Residential and Commercial Pools |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/6/2020 |  | 15.38% | L+ | 10.50% |  | 12/17/2026 | 1462 | 1443 | 1462 |
|  |  |  | Secured Debt | (9) | 3/6/2020 |  | 15.38% | L+ | 10.50% |  | 12/17/2026 | 40801 | 40521 | 40801 |
|  |  |  | Preferred Member Units | (8) (30) | 3/6/2020 | 587 |  |  |  |  |  |  | 8317 | 58180 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 50281 | 100443 |
| **Colonial Electric Company LLC** |  | Provider of Electrical Contracting Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 3/31/2021 |  |  |  |  |  | 3/31/2026 |  |  |  |
|  |  |  | Secured Debt |  | 3/31/2021 |  | 12.00% |  |  |  | 3/31/2026 | 23310 | 23151 | 23151 |
|  |  |  | Preferred Member Units | (8) | 3/31/2021 | 17280 |  |  |  |  |  |  | 7680 | 9160 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 30831 | 32311 |
| **CompareNetworks Topco, LLC** |  | Internet Publishing and Web Search Portals |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (17) (25) | 1/29/2019 |  |  | L+ | 9.00% |  | 1/29/2022 |  |  |  |
|  |  |  | Secured Debt | (9) | 1/29/2019 |  | 13.13% | L+ | 9.00% |  | 1/29/2024 | 5241 | 5232 | 5241 |
|  |  |  | Preferred Member Units | (8) | 1/29/2019 | 1975 |  |  |  |  |  |  | 1975 | 19830 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 7207 | 25071 |
| **Copper Trail Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (CTMH, LP) | (31) | 7/17/2017 | 38.75% |  |  |  |  |  |  | 588 | 588 |
| **Datacom, LLC** |  | Technology and Telecommunications Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/1/2022 |  | 7.50% |  |  |  | 12/31/2025 | 223 | 223 | 223 |
|  |  |  | Secured Debt |  | 3/31/2021 |  | 7.50% |  |  |  | 12/31/2025 | 8622 | 8190 | 7789 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  | Preferred Member Units | (8) | 3/31/2021 | 9000 |  |  |  |  |  |  | 2610 | 2670 |
|  |  |  |  |  |  |  |  |  |  |  |  | 11023 | 10682 |
| **Digital Products Holdings LLC** | Designer and Distributor of Consumer Electronics |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 4/1/2018 |  | 14.13% | L+ | 10.00% |  | 4/1/2023 | 15533 | 15523 | 15523 |
|  |  | Preferred Member Units | (8) | 4/1/2018 | 3857 |  |  |  |  |  |  | 9501 | 9835 |
|  |  |  |  |  |  |  |  |  |  |  |  | 25024 | 25358 |
| **Direct Marketing Solutions, Inc.** | Provider of Omni-Channel Direct Marketing Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 2/13/2018 |  |  | L+ | 11.00% |  | 2/13/2026 |  | (88) |  |
|  |  | Secured Debt | (9) | 12/27/2022 |  | 15.13% | L+ | 11.00% |  | 2/13/2026 | 27267 | 27122 | 27267 |
|  |  | Preferred Stock | (8) | 2/13/2018 | 8400 |  |  |  |  |  |  | 8400 | 22220 |
|  |  |  |  |  |  |  |  |  |  |  |  | 35434 | 49487 |
| **Elgin AcquireCo, LLC** | Manufacturer and Distributor of Engine and Chassic Components |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) (29) | 10/3/2022 |  |  | SF+ | 6.00% |  | 10/3/2027 |  | (9) | (9) |
|  |  | Secured Debt |  | 10/3/2022 |  | 12.00% |  |  |  | 10/3/2027 | 18773 | 18594 | 18594 |
|  |  | Secured Debt |  | 10/3/2022 |  | 9.00% |  |  |  | 10/3/2052 | 6357 | 6294 | 6294 |
|  |  | Common Stock |  | 10/3/2022 | 378 |  |  |  |  |  |  | 7603 | 7603 |
|  |  | Common Stock | (30) | 10/3/2022 | 939 |  |  |  |  |  |  | 1558 | 1558 |
|  |  |  |  |  |  |  |  |  |  |  |  | 34040 | 34040 |
| **Gamber-Johnson Holdings, LLC** | Manufacturer of Ruggedized Computer Mounting Systems |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) (29) | 6/24/2016 |  |  | SF+ | 8.50% |  | 1/1/2028 |  |  |  |
|  |  | Secured Debt | (9) (29) | 12/15/2022 |  | 11.50% | SF+ | 8.50% |  | 1/1/2028 | 64078 | 63685 | 64078 |
|  |  | Member Units | (8) | 6/24/2016 | 9042 |  |  |  |  |  |  | 17692 | 50890 |
|  |  |  |  |  |  |  |  |  |  |  |  | 81377 | 114968 |
| **Garreco, LLC** | Manufacturer and Supplier of Dental Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (37) | 7/15/2013 |  | 9.50% | L+ | 8.00% |  | 7/31/2023 | 3826 | 3826 | 3826 |
|  |  | Member Units | (8) | 7/15/2013 | 1200 |  |  |  |  |  |  | 1200 | 1800 |
|  |  |  |  |  |  |  |  |  |  |  |  | 5026 | 5626 |
| **GRT Rubber Technologies LLC** | Manufacturer of Engineered Rubber Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 12/21/2018 |  | 10.12% | L+ | 6.00% |  | 12/21/2023 | 670 | 670 | 670 |
|  |  | Secured Debt |  | 12/19/2014 |  | 12.12% | L+ | 8.00% |  | 10/29/2026 | 40493 | 40313 | 40493 |
|  |  | Member Units | (8) | 12/19/2014 | 5879 |  |  |  |  |  |  | 13065 | 44440 |
|  |  |  |  |  |  |  |  |  |  |  |  | 54048 | 85603 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Gulf Manufacturing, LLC** |  | Manufacturer of Specialty Fabricated Industrial Piping Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 8/31/2007 | 438 |  |  |  |  |  |  | 2980 | 6790 |
| **Gulf Publishing Holdings, LLC** |  | Energy Industry Focused Media and Publishing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 9/29/2017 |  |  | L+ | 9.50% |  | 7/1/2027 |  |  |  |
|  |  |  | Secured Debt |  | 7/1/2022 |  | 12.50% |  |  |  | 7/1/2027 | 2400 | 2400 | 2284 |
|  |  |  | Preferred Equity |  | 7/1/2022 | 63720 |  |  |  |  |  |  | 5600 | 3780 |
|  |  |  | Member Units |  | 4/29/2016 | 3681 |  |  |  |  |  |  | 3681 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 11681 | 6064 |
| **Harris Preston Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (2717 MH, L.P.) | (31) | 10/1/2017 | 49.26% |  |  |  |  |  |  | 3895 | 7552 |
|  |  |  | LP Interests (2717 HPP-MS, L.P.) | (31) | 3/11/2022 | 49.26% |  |  |  |  |  |  | 248 | 248 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 4143 | 7800 |
| **Harrison Hydra-Gen, Ltd.** |  | Manufacturer of Hydraulic Generators |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Stock |  | 6/4/2010 | 107456 |  |  |  |  |  |  | 718 | 3280 |
| **Jensen Jewelers of Idaho, LLC** |  | Retail Jewelry Store |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 8/29/2017 |  |  | P+ | 6.75% |  | 11/14/2023 |  |  |  |
|  |  |  | Secured Debt | (9) | 11/14/2006 |  | 13.75% | P+ | 6.75% |  | 11/14/2023 | 2450 | 2444 | 2450 |
|  |  |  | Member Units | (8) | 11/14/2006 | 627 |  |  |  |  |  |  | 811 | 14970 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3255 | 17420 |
| **Johnson Downie Opco, LLC** |  | Executive Search Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 12/10/2021 |  |  | L+ | 11.50% |  | 12/10/2026 |  | (14) |  |
|  |  |  | Secured Debt | (9) | 12/10/2021 |  | 15.63% | L+ | 11.50% |  | 12/10/2026 | 9999 | 9920 | 9999 |
|  |  |  | Preferred Equity | (8) | 12/10/2021 | 3150 |  |  |  |  |  |  | 3150 | 5540 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13056 | 15539 |
| **JorVet Holdings, LLC** |  | Supplier and Distributor of Veterinary Equipment and Supplies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/28/2022 |  | 12.00% |  |  |  | 3/28/2027 | 25650 | 25432 | 25432 |
|  |  |  | Preferred Equity | (8) | 3/28/2022 | 107406 |  |  |  |  |  |  | 10741 | 10741 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 36173 | 36173 |
| **KBK Industries, LLC** |  | Manufacturer of Specialty Oilfield and Industrial Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 1/23/2006 | 325 |  |  |  |  |  |  | 783 | 15570 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Kickhaefer Manufacturing Company, LLC** |  | Precision Metal Parts Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 10/31/2018 |  | 11.50% |  |  |  | 10/31/2023 | 20415 | 20374 | 20374 |
|  |  |  | Secured Debt |  | 10/31/2018 |  | 9.00% |  |  |  | 10/31/2048 | 3879 | 3842 | 3842 |
|  |  |  | Preferred Equity |  | 10/31/2018 | 581 |  |  |  |  |  |  | 12240 | 7220 |
|  |  |  | Member Units | (8) (30) | 10/31/2018 | 800 |  |  |  |  |  |  | 992 | 2850 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 37448 | 34286 |
| **Market Force Information, LLC** |  | Provider of Customer Experience Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/28/2017 |  | 15.13% | L+ | 11.00% |  | 7/28/2023 | 6275 | 6253 | 6090 |
|  |  |  | Secured Debt | (14) | 7/28/2017 |  | 12.00% |  |  | 12.00% | 7/28/2023 | 26079 | 25952 | 1610 |
|  |  |  | Member Units |  | 7/28/2017 | 743921 |  |  |  |  |  |  | 16642 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 48847 | 7700 |
| **MetalForming AcquireCo, LLC** |  | Distributor of Sheet Metal Folding and Metal Forming Equipment |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 10/19/2022 |  |  |  |  |  | 10/19/2024 |  |  |  |
|  |  |  | Secured Debt |  | 10/19/2022 |  | 12.75% |  |  |  | 10/19/2027 | 23802 | 23576 | 23576 |
|  |  |  | Preferred Equity | (8) | 10/19/2022 | 5915585 | 8.00% |  |  | 8.00% |  |  | 6010 | 6010 |
|  |  |  | Common Stock |  | 10/19/2022 | 1537219 |  |  |  |  |  |  | 1537 | 1537 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 31123 | 31123 |
| **MH Corbin Holding LLC** |  | Manufacturer and Distributor of Traffic Safety Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2015 |  | 13.00% |  |  |  | 12/31/2022 | 6156 | 6156 | 4548 |
|  |  |  | Preferred Member Units |  | 3/15/2019 | 66000 |  |  |  |  |  |  | 4400 |  |
|  |  |  | Preferred Member Units |  | 9/1/2015 | 4000 |  |  |  |  |  |  | 6000 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16556 | 4548 |
| **MS Private Loan Fund I, LP** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 1/26/2021 |  |  |  |  |  | 12/31/2024 |  |  |  |
|  |  |  | LP Interests | (8) (31) | 1/26/2021 | 14.51% |  |  |  |  |  |  | 14250 | 14833 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14250 | 14833 |
| **MSC Adviser I, LLC** | (16) | Third Party Investment Advisory Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 11/22/2013 | 1 |  |  |  |  |  |  | 29500 | 122930 |
| **MSC Income Fund, Inc.** | (12) (13) | Business Development Company |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Equity | (8) | 5/2/2022 | 94697 |  |  |  |  |  |  | 750 | 753 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Mystic Logistics Holdings, LLC** | Logistics and Distribution Services Provider for Large Volume Mailers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (25) | 8/18/2014 |  |  |  |  |  | 1/31/2024 |  |  |  |
|  |  | Secured Debt |  | 8/18/2014 |  | 10.00% |  |  |  | 1/31/2024 | 5746 | 5746 | 5746 |
|  |  | Common Stock | (8) | 8/18/2014 | 5873 |  |  |  |  |  |  | 2720 | 22830 |
|  |  |  |  |  |  |  |  |  |  |  |  | 8466 | 28576 |
| **NAPCO Precast, LLC** | Precast Concrete Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units |  | 1/31/2008 | 2955 |  |  |  |  |  |  | 2975 | 11830 |
| **Nebraska Vet AcquireCo, LLC** | Mixed-Animal Veterinary and Animal Health Product Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 12/31/2020 |  |  | L+ | 7.00% |  | 12/31/2025 |  |  |  |
|  |  | Secured Debt |  | 12/31/2020 |  | 12.00% |  |  |  | 12/31/2025 | 20094 | 19972 | 20094 |
|  |  | Secured Debt |  | 12/31/2020 |  | 12.00% |  |  |  | 12/31/2025 | 10500 | 10434 | 10500 |
|  |  | Preferred Member Units |  | 12/31/2020 | 6987 |  |  |  |  |  |  | 6987 | 7700 |
|  |  |  |  |  |  |  |  |  |  |  |  | 37393 | 38294 |
| **NexRev LLC** | Provider of Energy Efficiency Products & Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (25) | 2/28/2018 |  |  |  |  |  | 2/28/2025 |  |  |  |
|  |  | Secured Debt |  | 2/28/2018 |  | 11.00% |  |  |  | 2/28/2025 | 11465 | 11335 | 8477 |
|  |  | Preferred Member Units | (8) | 2/28/2018 | 103144186 |  |  |  |  |  |  | 8213 | 1110 |
|  |  |  |  |  |  |  |  |  |  |  |  | 19548 | 9587 |
| **NRP Jones, LLC** | Manufacturer of Hoses, Fittings and Assemblies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 12/21/2017 |  | 12.00% |  |  |  | 3/20/2023 | 2080 | 2080 | 2080 |
|  |  | Member Units | (8) | 12/22/2011 | 65962 |  |  |  |  |  |  | 3717 | 4790 |
|  |  |  |  |  |  |  |  |  |  |  |  | 5797 | 6870 |
| **NuStep, LLC** | Designer, Manufacturer and Distributor of Fitness Equipment |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 1/31/2017 |  | 10.63% | L+ | 6.50% |  | 1/31/2025 | 4400 | 4399 | 4399 |
|  |  | Secured Debt |  | 1/31/2017 |  | 12.00% |  |  |  | 1/31/2025 | 18440 | 18414 | 18414 |
|  |  | Preferred Member Units |  | 1/31/2017 | 406 |  |  |  |  |  |  | 10200 | 8040 |
|  |  | Preferred Member Units |  | 11/2/2022 | 2062 |  |  |  |  |  |  | 2062 | 5150 |
|  |  |  |  |  |  |  |  |  |  |  |  | 35075 | 36003 |
| **OMi Topco, LLC** | Manufacturer of Overhead Cranes |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 8/31/2021 |  | 12.00% |  |  |  | 8/31/2026 | 15750 | 15634 | 15750 |
|  |  | Preferred Member Units | (8) | 4/1/2008 | 900 |  |  |  |  |  |  | 1080 | 22810 |
|  |  |  |  |  |  |  |  |  |  |  |  | 16714 | 38560 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Orttech Holdings, LLC** | Distributor of Industrial Clutches, Brakes and Other Components |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 7/30/2021 |  |  | L+ | 11.00% |  | 7/31/2026 |  |  |  |
|  |  | Secured Debt | (9) | 7/30/2021 |  | 15.13% | L+ | 11.00% |  | 7/31/2026 | 23600 | 23429 | 23429 |
|  |  | Preferred Stock | (8) (30) | 7/30/2021 | 10000 |  |  |  |  |  |  | 10000 | 11750 |
|  |  |  |  |  |  |  |  |  |  |  |  | 33429 | 35179 |
| **Pearl Meyer Topco LLC** | Provider of Executive Compensation Consulting Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (25) | 4/27/2020 |  |  |  |  |  | 4/27/2025 |  |  |  |
|  |  | Secured Debt | (25) | 4/27/2020 |  |  |  |  |  | 4/27/2025 |  |  |  |
|  |  | Secured Debt |  | 4/27/2020 |  | 12.00% |  |  |  | 4/27/2025 | 28681 | 28537 | 28681 |
|  |  | Preferred Equity | (8) | 4/27/2020 | 13800 |  |  |  |  |  |  | 13000 | 43260 |
|  |  |  |  |  |  |  |  |  |  |  |  | 41537 | 71941 |
| **PPL RVs, Inc.** | Recreational Vehicle Dealer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 10/31/2019 |  |  | L+ | 7.00% |  | 11/15/2027 |  | (9) |  |
|  |  | Secured Debt | (9) | 11/15/2016 |  | 10.25% | L+ | 7.00% |  | 11/15/2027 | 21655 | 21408 | 21655 |
|  |  | Common Stock | (8) | 6/10/2010 | 2000 |  |  |  |  |  |  | 2150 | 18950 |
|  |  | Common Stock |  | 6/14/2022 | 238421 |  |  |  |  |  |  | 238 | 238 |
|  |  |  |  |  |  |  |  |  |  |  |  | 23787 | 40843 |
| **Principle Environmental, LLC** | Noise Abatement Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (25) | 2/1/2011 |  |  |  |  |  | 11/15/2026 |  |  |  |
|  |  | Secured Debt |  | 7/1/2011 |  | 13.00% |  |  |  | 11/15/2026 | 5897 | 5806 | 5806 |
|  |  | Preferred Member Units | (8) | 2/1/2011 | 21806 |  |  |  |  |  |  | 5709 | 12420 |
|  |  | Common Stock |  | 1/27/2021 | 1037 |  |  |  |  |  |  | 1200 | 590 |
|  |  |  |  |  |  |  |  |  |  |  |  | 12715 | 18816 |
| **Quality Lease Service, LLC** | Provider of Rigsite Accommodation Unit Rentals and Related Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units |  | 6/8/2015 | 1000 |  |  |  |  |  |  | 7513 | 525 |
| **River Aggregates, LLC** | Processor of Construction Aggregates |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units | (30) | 12/20/2013 | 1500 |  |  |  |  |  |  | 369 | 3620 |
| **Robbins Bros. Jewelry, Inc.** | Bridal Jewelry Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) (25) | 12/15/2021 |  |  |  |  |  | 12/15/2026 |  | (35) | (35) |
|  |  | Secured Debt | (9) | 12/15/2021 |  | 12.50% |  |  |  | 12/15/2026 | 35685 | 35404 | 35404 |
|  |  | Preferred Equity |  | 12/15/2021 | 11070 |  |  |  |  |  |  | 11070 | 14880 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 46439 | 50249 |
| **Tedder Industries, LLC** |  | Manufacturer of Firearm Holsters and Accessories |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2018 |  | 12.00% |  |  |  | 8/31/2023 | 1840 | 1840 | 1840 |
|  |  |  | Secured Debt |  | 8/31/2018 |  | 12.00% |  |  |  | 8/31/2023 | 15200 | 15192 | 15120 |
|  |  |  | Preferred Member Units |  | 8/31/2018 | 544 |  |  |  |  |  |  | 9245 | 7681 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 26277 | 24641 |
| **Televerde, LLC** |  | Provider of Telemarketing and Data Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 1/6/2011 | 460 |  |  |  |  |  |  | 1290 | 5408 |
|  |  |  | Preferred Stock |  | 1/26/2022 | 248 |  |  |  |  |  |  | 718 | 1794 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2008 | 7202 |
| **Trantech Radiator Topco, LLC** |  | Transformer Cooling Products and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 5/31/2019 |  |  |  |  |  | 5/31/2024 |  | (5) |  |
|  |  |  | Secured Debt |  | 5/31/2019 |  | 12.00% |  |  |  | 5/31/2024 | 7920 | 7894 | 7920 |
|  |  |  | Common Stock | (8) | 5/31/2019 | 615 |  |  |  |  |  |  | 4655 | 7800 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12544 | 15720 |
| **Vision Interests, Inc.** |  | Manufacturer / Installer of Commercial Signage |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Series A Preferred Stock | (8) | 12/23/2011 | 3000000 |  |  |  |  |  |  | 3000 | 3000 |
| **VVS Holdco LLC** |  | Omnichannel Retailer of Animal Health Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (30) | 12/1/2021 |  |  | L+ | 6.00% |  | 12/1/2023 |  | (21) | (21) |
|  |  |  | Secured Debt | (30) | 12/1/2021 |  | 11.50% |  |  |  | 12/1/2026 | 30400 | 30158 | 30161 |
|  |  |  | Preferred Equity | (8) (30) | 12/1/2021 | 11840 |  |  |  |  |  |  | 11840 | 11940 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 41977 | 42080 |
| **Ziegler's NYPD, LLC** |  | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 6/1/2015 |  | 12.00% |  |  |  | 10/1/2024 | 450 | 450 | 450 |
|  |  |  | Secured Debt |  | 10/1/2008 |  | 6.50% |  |  |  | 10/1/2024 | 1000 | 1000 | 945 |
|  |  |  | Secured Debt |  | 10/1/2008 |  | 14.00% |  |  |  | 10/1/2024 | 2750 | 2750 | 2676 |
|  |  |  | Preferred Member Units |  | 6/30/2015 | 10072 |  |  |  |  |  |  | 2834 | 240 |
|  |  |  | Warrants | (27) | 7/1/2015 | 587 |  |  |  |  | 10/1/2025 |  | 600 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 7634 | 4311 |
| **Subtotal Control Investments (80.8% of net assets at fair value)** |  |  |  |  |  |  |  |  |  |  |  |  | $1270802 | $1703172 |
| **<u>Affiliate Investments</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **AAC Holdings, Inc.** | (11) | Substance Abuse Treatment Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt |  | 12/11/2020 |  | 18.00% |  |  | 18.00% | 6/25/2025 | $11726 | $11590 | $11550 |
|  |  |  | Common Stock |  | 12/11/2020 | 593928 |  |  |  |  |  |  | 3148 |  |
|  |  |  | Warrants | (27) | 12/11/2020 | 554353 |  |  |  |  | 12/11/2025 |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14738 | 11550 |
| **AFG Capital Group, LLC** |  | Provider of Rent-to-Own Financing Solutions and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Member Units | (8) | 11/7/2014 | 186 |  |  |  |  |  |  | 1200 | 9400 |
| **ATX Networks Corp.** | (11) | Provider of Radio Frequency Management Equipment |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 9/1/2021 |  | 12.23% | L+ | 7.50% |  | 9/1/2026 | 6783 | 6208 | 6343 |
|  |  |  | Unsecured Debt |  | 9/1/2021 |  | 10.00% |  |  | 10.00% | 9/1/2028 | 3396 | 2291 | 2598 |
|  |  |  | Common Stock |  | 9/1/2021 | 583 |  |  |  |  |  |  |  | 3270 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8499 | 12211 |
| **BBB Tank Services, LLC** |  | Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Unsecured Debt | (9) (17) | 4/8/2016 |  | 15.12% | L+ | 11.00% |  | 4/8/2021 | 800 | 800 | 800 |
|  |  |  | Unsecured Debt | (9) (17) | 4/8/2016 |  | 15.12% | L+ | 11.00% |  | 4/8/2021 | 4000 | 4000 | 2086 |
|  |  |  | Member Units |  | 4/8/2016 | 800000 |  |  |  |  |  |  | 800 |  |
|  |  |  | Preferred Stock (non-voting) |  | 12/17/2018 |  | 15.00% |  |  |  |  |  | 162 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5762 | 2886 |
| **Boccella Precast Products LLC** |  | Manufacturer of Precast Hollow Core Concrete |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 9/23/2021 |  | 10.00% |  |  |  | 2/28/2027 | 320 | 320 | 320 |
|  |  |  | Member Units | (8) | 6/30/2017 | 2160000 |  |  |  |  |  |  | 2256 | 2970 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2576 | 3290 |
| **Buca C, LLC** |  | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 6/30/2015 |  | 9.00% |  |  |  | 6/30/2023 | 17355 | 17355 | 12337 |
|  |  |  | Preferred Member Units |  | 6/30/2015 | 6 | 6.00% |  |  | 6.00% |  |  | 4770 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 22125 | 12337 |
| **Career Team Holdings, LLC** |  | Provider of Workforce Training and Career Development Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 12/17/2021 |  |  | L+ | 6.00% |  | 12/17/2026 |  | (9) | (9) |
|  |  |  | Secured Debt |  | 12/17/2021 |  | 12.50% |  |  |  | 12/17/2026 | 20250 | 20090 | 20090 |
|  |  |  | Common Stock |  | 12/17/2021 | 450000 |  |  |  |  |  |  | 4500 | 4500 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 24581 | 24581 |
| **Chandler Signs Holdings, LLC** | (10) | Sign Manufacturer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Class A Units |  | 1/4/2016 | 1500000 |  |  |  |  |  |  | 1500 | 1790 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Classic H&G Holdings, LLC** |  | Provider of Engineered Packaging Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/12/2020 |  | 9.75% | L+ | 6.00% |  | 3/12/2025 | 4560 | 4560 | 4560 |
|  |  |  | Secured Debt |  | 3/12/2020 |  | 8.00% |  |  |  | 3/12/2025 | 19274 | 19182 | 19274 |
|  |  |  | Preferred Member Units | (8) | 3/12/2020 | 154 |  |  |  |  |  |  | 5760 | 24637 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 29502 | 48471 |
| **Congruent Credit Opportunities Funds** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Congruent Credit Opportunities Fund <br> III, LP) | (8) (31) | 2/4/2015 | 13.32% |  |  |  |  |  |  | 8096 | 7657 |
| **DMA Industries, LLC** |  | Distributor of aftermarket ride control products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 11/19/2021 |  | 12.00% |  |  |  | 11/19/2026 | 21200 | 21035 | 21200 |
|  |  |  | Preferred Equity |  | 11/19/2021 | 5944 |  |  |  |  |  |  | 5944 | 7260 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 26979 | 28460 |
| **Dos Rios Partners** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Dos Rios Partners, LP) | (31) | 4/25/2013 | 20.24% |  |  |  |  |  |  | 6459 | 9127 |
|  |  |  | LP Interests (Dos Rios Partners - A, LP) | (31) | 4/25/2013 | 6.43% |  |  |  |  |  |  | 2051 | 2898 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8510 | 12025 |
| **Dos Rios Stone Products LLC** | (10) | Limestone and Sandstone Dimension Cut Stone Mining Quarries |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Class A Preferred Units | (30) | 6/27/2016 | 2000000 |  |  |  |  |  |  | 2000 | 1330 |
| **EIG Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (EIG Global Private Debt Fund-A, L.P.) | (8) (31) | 11/6/2015 | 5000000 |  |  |  |  |  |  | 1060 | 1013 |
| **Flame King Holdings, LLC** |  | Propane Tank and Accessories Distributor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 10.75% | L+ | 6.50% |  | 10/31/2026 | 7600 | 7537 | 7600 |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 13.25% | L+ | 9.00% |  | 10/31/2026 | 21200 | 21038 | 21200 |
|  |  |  | Preferred Equity | (8) | 10/29/2021 | 9360 |  |  |  |  |  |  | 10400 | 17580 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 38975 | 46380 |
| **Freeport Financial Funds** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | LP Interests (Freeport Financial SBIC Fund LP) | (31) | 3/23/2015 | 9.30% |  |  |  |  |  |  | 3507 | 3483 |
|  |  |  | LP Interests (Freeport First Lien Loan Fund III LP) | (8) (31) | 7/31/2015 | 5.95% |  |  |  |  |  |  | 6303 | 5848 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 9810 | 9331 |
| **GFG Group, LLC.** |  | Grower and Distributor of a Variety of Plants and Products to Other Wholesalers, Retailers and Garden Centers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/31/2021 |  | 9.00% |  |  |  | 3/31/2026 | 11345 | 11269 | 11345 |
|  |  |  | Preferred Member Units | (8) | 3/31/2021 | 226 |  |  |  |  |  |  | 4900 | 7140 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16169 | 18485 |
| **Harris Preston Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (HPEP 3, L.P.) | (31) | 8/9/2017 | 8.22% |  |  |  |  |  |  | 2558 | 4331 |
|  |  |  | LP Interests (HPEP 4, L.P.) | (31) | 7/12/2022 | 8.71% |  |  |  |  |  |  | 2332 | 2332 |
|  |  |  | LP Interests (423 COR, LP) | (31) | 6/2/2022 | 22.93% |  |  |  |  |  |  | 1400 | 1400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6290 | 8063 |
| **Hawk Ridge Systems, LLC** |  | Value-Added Reseller of Engineering Design and Manufacturing Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/2/2016 |  | 10.13% | L+ | 6.00% |  | 1/15/2026 | 3185 | 3183 | 3185 |
|  |  |  | Secured Debt |  | 12/2/2016 |  | 9.00% |  |  |  | 1/15/2026 | 37800 | 37685 | 37800 |
|  |  |  | Preferred Member Units | (8) | 12/2/2016 | 226 |  |  |  |  |  |  | 2850 | 17460 |
|  |  |  | Preferred Member Units | (30) | 12/2/2016 | 226 |  |  |  |  |  |  | 150 | 920 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 43868 | 59365 |
| **Houston Plating and Coatings, LLC** |  | Provider of Plating and Industrial Coating Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Unsecured Convertible Debt |  | 5/1/2017 |  | 8.00% |  |  |  | 10/2/2024 | 3000 | 3000 | 3000 |
|  |  |  | Member Units |  | 1/8/2003 | 322297 |  |  |  |  |  |  | 2352 | 2400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5352 | 5400 |
| **I-45 SLF LLC** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units (Fully diluted 20.0%; 21.75% profits<br>&nbsp;&nbsp;&nbsp;&nbsp;interest) | (8) | 10/20/2015 | 20.00% |  |  |  |  |  |  | 19000 | 11758 |
| **Iron-Main Investments, LLC** |  | Consumer Reporting Agency Providing Employment Background Checks and Drug Testing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/2/2021 |  | 12.50% |  |  |  | 11/15/2026 | 4534 | 4500 | 4500 |
|  |  |  | Secured Debt |  | 9/1/2021 |  | 12.50% |  |  |  | 11/15/2026 | 3154 | 3130 | 3130 |
|  |  |  | Secured Debt |  | 11/15/2021 |  | 12.50% |  |  |  | 11/15/2026 | 8944 | 8944 | 8944 |
|  |  |  | Secured Debt |  | 11/15/2021 |  | 12.50% |  |  |  | 11/15/2026 | 19712 | 19559 | 19559 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Common Stock |  | 8/3/2021 | 179778 |  |  |  |  |  |  | 1798 | 1798 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 37931 | 37931 |
| **OnAsset Intelligence, Inc.** |  | Provider of Transportation Monitoring / Tracking Products and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) | 5/20/2014 |  | 12.00% |  |  | 12.00% | 12/31/2023 | 964 | 964 | 569 |
|  |  |  | Secured Debt | (14) | 3/21/2014 |  | 12.00% |  |  | 12.00% | 12/31/2023 | 983 | 983 | 580 |
|  |  |  | Secured Debt | (14) | 5/10/2013 |  | 12.00% |  |  | 12.00% | 12/31/2023 | 2116 | 2116 | 1249 |
|  |  |  | Secured Debt | (14) | 4/18/2011 |  | 12.00% |  |  | 12.00% | 12/31/2023 | 4415 | 4415 | 2606 |
|  |  |  | Unsecured Debt | (14) | 6/5/2017 |  | 10.00% |  |  | 10.00% | 12/31/2023 | 305 | 305 | 305 |
|  |  |  | Preferred Stock |  | 4/18/2011 | 912 | 7.00% |  |  | 7.00% |  |  | 1981 |  |
|  |  |  | Common Stock |  | 4/15/2021 | 635 |  |  |  |  |  |  | 830 |  |
|  |  |  | Warrants | (27) | 4/18/2011 | 4699 |  |  |  |  | 12/31/2023 |  | 1089 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12683 | 5309 |
| **Oneliance, LLC** |  | Construction Cleaning Company |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 8/6/2021 |  |  | L+ | 11.00% |  | 8/6/2023 |  |  |  |
|  |  |  | Secured Debt | (9) | 8/6/2021 |  | 15.13% | L+ | 11.00% |  | 8/6/2026 | 5600 | 5559 | 5559 |
|  |  |  | Preferred Stock |  | 8/6/2021 | 1056 |  |  |  |  |  |  | 1056 | 1056 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6615 | 6615 |
| **Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)** |  | Provider of Rigsite Accommodation Unit Rentals and Related Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) (17) (39) | 6/30/2015 |  | 12.00% |  |  |  | 1/8/2018 | 30369 | 29865 |  |
|  |  |  | Preferred Member Units |  | 1/8/2013 | 250 |  |  |  |  |  |  | 2500 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 32365 |  |
| **SI East, LLC** |  | Rigid Industrial Packaging Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 8/31/2018 |  |  |  |  |  | 8/31/2023 |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2018 |  | 9.50% |  |  |  | 8/31/2023 | 89786 | 89708 | 89786 |
|  |  |  | Preferred Member Units | (8) | 8/31/2018 | 157 |  |  |  |  |  |  | 1218 | 13650 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 90926 | 103436 |
| **Slick Innovations, LLC** |  | Text Message Marketing Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 9/13/2018 |  | 14.00% |  |  |  | 12/22/2027 | 13840 | 13698 | 13840 |
|  |  |  | Common Stock | (8) | 9/13/2018 | 70000 |  |  |  |  |  |  | 456 | 1530 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14154 | 15370 |
| **Sonic Systems International, LLC** | (10) | Nuclear Power Staffing Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/20/2021 |  | 11.24% | L+ | 7.50% |  | 8/20/2026 | 15769 | 15527 | 15769 |
|  |  |  | Common Stock |  | 8/20/2021 | 9968 |  |  |  |  |  |  | 1356 | 1280 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16883 | 17049 |
| **Student Resource Center, LLC** | (10) | Higher Education Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/31/2022 |  | 13.27% | L+ | 8.50% |  | 12/31/2027 | 5000 | 4556 | 4556 |
|  |  |  | Preferred Equity |  | 12/31/2022 | 5907649 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 4556 | 4556 |
| **Superior Rigging & Erecting Co.** |  | Provider of Steel Erecting, Crane Rental & Rigging Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2020 |  | 12.00% |  |  |  | 8/31/2025 | 21500 | 21378 | 21378 |
|  |  |  | Preferred Member Units |  | 8/31/2020 | 1571 |  |  |  |  |  |  | 4500 | 4500 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 25878 | 25878 |
| **The Affiliati Network, LLC** |  | Performance Marketing Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/9/2021 |  | 13.00% |  |  |  | 8/9/2026 | 120 | 106 | 106 |
|  |  |  | Secured Debt |  | 8/9/2021 |  | 13.00% |  |  |  | 8/9/2026 | 9521 | 9442 | 9442 |
|  |  |  | Preferred Stock | (8) | 8/9/2021 | 1280000 |  |  |  |  |  |  | 6400 | 6400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 15948 | 15948 |
| **UnionRock Energy Fund II, LP** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests | (8) (31) | 6/15/2020 | 11.11% |  |  |  |  |  |  | 3734 | 5855 |
| **UniTek Global Services, Inc.** | (11) | Provider of Outsourced Infrastructure Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 10/15/2018 |  | 10.76% | SF+ | 5.50% | 2.00% | 8/20/2024 | 406 | 405 | 382 |
|  |  |  | Secured Debt | (9) (29) | 8/27/2018 |  | 10.76% | SF+ | 5.50% | 2.00% | 8/20/2024 | 1814 | 1807 | 1712 |
|  |  |  | Secured Convertible Debt |  | 1/1/2021 |  | 15.00% |  |  | 15.00% | 2/20/2025 | 2403 | 2403 | 4592 |
|  |  |  | Preferred Stock | (8) | 8/29/2019 | 1133102 | 20.00% |  |  | 20.00% |  |  | 2141 | 2833 |
|  |  |  | Preferred Stock |  | 8/21/2018 | 1521122 | 20.00% |  |  | 20.00% |  |  | 2188 | 1991 |
|  |  |  | Preferred Stock |  | 6/30/2017 | 2281682 | 19.00% |  |  | 19.00% |  |  | 3667 |  |
|  |  |  | Preferred Stock |  | 1/15/2015 | 4336866 | 13.50% |  |  | 13.50% |  |  | 7924 |  |
|  |  |  | Common Stock |  | 4/1/2020 | 945507 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 20535 | 11510 |
| **Universal Wellhead Services Holdings, LLC** | (10) | Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Member Units | (30) | 12/7/2016 | 716949 | 14.00% |  |  | 14.00% |  |  | 1032 | 220 |
|  |  |  | Member Units | (30) | 12/7/2016 | 4000000 |  |  |  |  |  |  | 4000 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5032 | 220 |
| **Volusion, LLC** |  | Provider of Online Software-as-a-Service eCommerce Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (17) | 1/26/2015 |  | 11.50% |  |  |  | 1/26/2020 | 16734 | 16734 | 14914 |
|  |  |  | Unsecured Convertible Debt |  | 5/16/2018 |  | 8.00% |  |  |  | 11/16/2023 | 409 | 409 |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Preferred Member Units |  | 1/26/2015 | 4876670 |  |  |  |  |  |  | 14000 |  |
|  |  |  | Warrants | (27) | 1/26/2015 | 1831355 |  |  |  |  | 1/26/2025 |  | 2576 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 33719 | 14914 |
| **World Micro Holdings, LLC** |  | Supply Chain Management |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/12/2022 |  | 13.00% |  |  |  | 12/12/2027 | $14280 | $14140 | $14140 |
|  |  |  | Preferred Equity |  | 12/12/2022 | 3845 |  |  |  |  |  |  | $3845 | $3845 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | $17985 | $17985 |
| **Subtotal Affiliate Investments (29.3% of net assets at fair value)** |  |  |  |  |  |  |  |  |  |  |  |  | $635536 | $618359 |
| **<u>Non-Control Investments</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **AB Centers Acquisition Corporation** | (10) | Applied Behavior Analysis Therapy Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 9/6/2022 |  |  | SF+ | 6.00% |  | 9/6/2028 | $— | $(39) | $(39) |
|  |  |  | Secured Debt | (9) (29) | 9/6/2022 |  | 10.20% | SF+ | 6.00% |  | 9/6/2028 | 741 | 653 | 741 |
|  |  |  | Secured Debt | (9) (29) | 9/6/2022 |  | 10.58% | SF+ | 6.00% |  | 9/6/2028 | 17052 | 16602 | 17052 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 17216 | 17754 |
| **Acousti Engineering Company of Florida** | (10) | Interior Subcontractor Providing Acoustical Walls and Ceilings |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/2/2020 |  | 13.23% | L+ | 8.50% |  | 11/2/2025 | 1678 | 1669 | 1678 |
|  |  |  | Secured Debt | (9) | 11/2/2020 |  | 13.23% | L+ | 8.50% |  | 11/2/2025 | 9891 | 9825 | 9891 |
|  |  |  | Secured Debt | (9) | 5/26/2021 |  | 16.17% | L+ | 12.50% |  | 11/2/2025 | 807 | 800 | 807 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12294 | 12376 |
| **Acumera, Inc.** | (10) | Managed Security Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/28/2022 |  | 13.88% | L+ | 9.50% |  | 10/26/2027 | 14618 | 14291 | 14618 |
|  |  |  | Secured Debt | (9) | 6/28/2022 |  | 13.57% | L+ | 9.00% |  | 10/26/2027 | 4368 | 4270 | 4368 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 18561 | 18986 |
| **Adams Publishing Group, LLC** | (10) | Local Newspaper Operator |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (36) | 3/11/2022 |  | 10.00% | L+ | 6.00% |  | 3/11/2027 | 4729 | 4729 | 4729 |
|  |  |  | Secured Debt | (9) (36) | 3/11/2022 |  | 10.00% | L+ | 7.50% |  | 3/11/2027 | 24086 | 24033 | 24086 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 28762 | 28815 |
| **ADS Tactical, Inc.** | (11) | Value-Added Logistics and Supply Chain Provider to the Defense Industry |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/29/2021 |  | 10.14% | L+ | 5.75% |  | 3/19/2026 | 21077 | 20781 | 18969 |
| **AMEREQUIP LLC.** | (10) | Full Service Provider of Comprehensive Commercial Production Services, Including the Design, Engineering, and Manufacturing of Products It |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) (25) (29) | 8/31/2022 |  |  | SF+ | 7.40% |  | 8/31/2027 |  | (137) | (137) |
|  |  |  | Secured Debt | (9) (29) | 8/31/2022 |  | 11.72% | SF+ | 7.40% |  | 8/31/2027 | 37491 | 36819 | 37463 |
|  |  |  | Common Stock |  | 8/31/2022 | 235 |  |  |  |  |  |  | 1779 | 1779 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 38461 | 39105 |
| **American Health Staffing Group, Inc.** | (10) | Healthcare Temporary Staffing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 11/19/2021 |  |  | L+ | 6.00% |  | 11/19/2026 |  | (10) | (10) |
|  |  |  | Secured Debt | (9) | 11/19/2021 |  | 11.12% | L+ | 6.00% |  | 11/19/2026 | 6617 | 6565 | 6617 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6555 | 6607 |
| **American Nuts, LLC** | (10) | Roaster, Mixer and Packager of Bulk Nuts and Seeds |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 3/11/2022 |  | 10.46% | SF+ | 6.75% |  | 4/10/2026 | 15628 | 15408 | 14606 |
|  |  |  | Secured Debt | (9) (29) | 3/11/2022 |  | 12.46% | SF+ | 8.75% |  | 4/10/2026 | 15628 | 15408 | 14654 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 30816 | 29260 |
| **American Teleconferencing Services, Ltd.** | (11) | Provider of Audio Conferencing and Video Collaboration Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) | 9/17/2021 |  | 7.50% | L+ | 6.50% |  | 1/31/2023 | 2980 | 2980 | 168 |
|  |  |  | Secured Debt | (9) (14) | 5/19/2016 |  | 7.50% | L+ | 6.50% |  | 6/8/2023 | 14370 | 13706 | 808 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16686 | 976 |
| **ArborWorks, LLC** | (10) | Vegetation Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/9/2021 |  | 13.41% | L+ | 9.00% |  | 11/9/2026 | 4678 | 4569 | 3945 |
|  |  |  | Secured Debt | (9) | 11/9/2021 |  | 13.56% | L+ | 9.00% |  | 11/9/2026 | 29722 | 29261 | 25065 |
|  |  |  | Common Equity |  | 11/9/2021 | 234 |  |  |  |  |  |  | 234 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 34064 | 29010 |
| **Archer Systems, LLC** | (10) | Mass Tort Settlement Administration Solutions Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 8/11/2022 |  |  | SF+ | 6.50% |  | 8/11/2027 |  | (135) | (135) |
|  |  |  | Secured Debt | (9) (29) | 8/11/2022 |  | 10.92% | SF+ | 6.50% |  | 8/11/2027 | 67597 | 66330 | 66511 |
|  |  |  | Common Stock |  | 8/11/2022 | 1387832 |  |  |  |  |  |  | 1388 | 1388 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 67583 | 67764 |
| **Arrow International, Inc** | (10) | Manufacturer and Distributor of Charitable Gaming Supplies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (23) (29) | 12/21/2020 |  | 10.36% | SF+ | 6.60% |  | 12/21/2025 | 36000 | 35737 | 36000 |
| **ATS Operating, LLC** | (10) | For-Profit Thrift Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 1/18/2022 |  |  | SF+ | 5.50% |  | 1/18/2027 |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 1/18/2022 |  | 9.32% | SF+ | 5.50% |  | 1/18/2027 | 6660 | 6660 | 6582 |
|  |  |  | Secured Debt | (9) (29) | 1/18/2022 |  | 11.32% | SF+ | 7.50% |  | 1/18/2027 | 6660 | 6660 | 6593 |
|  |  |  | Common Stock |  | 1/18/2022 | 720000 |  |  |  |  |  |  | 720 | 660 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14040 | 13835 |
| **AVEX Aviation Holdings, LLC** | (10) | Specialty Aircraft Dealer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 12/23/2022 |  |  | SF+ | 7.25% |  | 12/23/2027 |  | (57) | (57) |
|  |  |  | Secured Debt | (9) (29) | 12/23/2022 |  | 12.17% | SF+ | 7.25% |  | 12/23/2027 | 29071 | 27927 | 27927 |
|  |  |  | Common Equity |  | 12/15/2021 | 360 |  |  |  |  |  |  | 360 | 406 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 28230 | 28276 |
| **Berry Aviation, Inc.** | (10) | Charter Airline Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 7/6/2018 |  | 12.00% |  | 10.50% | 1.50% | 1/6/2024 | 195 | 195 | 195 |
|  |  |  | Preferred Member Units | (8) (30) | 7/6/2018 | 1548387 | 8.00% |  |  | 8.00% |  |  | 1161 | 4561 |
|  |  |  | Preferred Member Units | (8) (25) (30) | 11/12/2019 | 122416 |  |  |  | 16.00% |  |  |  | 270 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 1356 | 5026 |
| **Bettercloud, Inc.** | (10) | SaaS Provider of Workflow Management and Business Application Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 6/30/2022 |  |  | SF+ | 1.00% | 6.00% | 6/30/2028 |  | (76) | (76) |
|  |  |  | Secured Debt | (9) (29) | 6/30/2022 |  | 11.40% | SF+ | 1.00% | 6.00% | 6/30/2028 | 27505 | 27020 | 27505 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 26944 | 27429 |
| **Binswanger Enterprises, LLC** | (10) | Glass Repair and Installation Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 3/10/2017 | 1050000 |  |  |  |  |  |  | 1050 | 420 |
| **Bluestem Brands, Inc.** | (11) | Multi-Channel Retailer of General Merchandise |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 10/19/2022 |  |  | L+ | 8.50% |  | 8/28/2025 |  |  |  |
|  |  |  | Secured Debt | (9) | 8/28/2020 |  | 12.94% | L+ | 8.50% |  | 8/28/2025 | 3239 | 2280 | 3139 |
|  |  |  | Common Stock | (8) | 10/1/2020 | 723184 |  |  |  |  |  |  | 1 | 4860 |
|  |  |  | Warrants | (27) | 10/19/2022 | 163295 |  |  |  |  | 10/19/2032 |  | 1036 | 1095 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3317 | 9094 |
| **Brainworks Software, LLC** | (10) | Advertising Sales and Newspaper Circulation Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (14) (17) | 8/12/2014 |  | 12.50% | P+ | 9.25% |  | 7/22/2019 | 761 | 761 | 761 |
|  |  |  | Secured Debt | (9) (14) (17) | 8/12/2014 |  | 12.50% | P+ | 9.25% |  | 7/22/2019 | 7056 | 7056 | 2916 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 7817 | 3677 |
| **Brightwood Capital Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Brightwood Capital Fund III, LP) | (8) (31) | 7/21/2014 | 1.55% |  |  |  |  |  |  | 7062 | 4727 |
|  |  |  | LP Interests (Brightwood Capital Fund IV, LP) | (8) (31) | 10/26/2016 | 0.59% |  |  |  |  |  |  | 4350 | 4541 |
|  |  |  | LP Interests (Brightwood Capital Fund V, LP) | (31) | 7/12/2021 | 1.31% |  |  |  |  |  |  | 2000 | 2229 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13412 | 11497 |
| **Burning Glass Intermediate Holding Company, Inc.** | (10) | Provider of Skills-Based Labor Market Analytics |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 6/14/2021 |  |  | L+ | 5.00% |  | 6/10/2026 |  | (28) |  |
|  |  |  | Secured Debt | (9) | 6/14/2021 |  | 8.91% | L+ | 5.00% |  | 6/10/2028 | 19933 | 19656 | 19933 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 19628 | 19933 |
| **Cadence Aerospace LLC** | (10) | Aerostructure Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (34) | 11/14/2017 |  | 11.99% | L+ | 8.50% | 0.01% | 11/14/2023 | 28328 | 28264 | 28328 |
| **CAI Software LLC** |  | Provider of Specialized Enterprise Resource Planning Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Equity | (8) | 12/13/2021 | 1788527 |  |  |  |  |  |  | 1789 | 1789 |
|  |  |  | Preferred Equity |  | 12/13/2021 | 596176 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 1789 | 1789 |
| **Camin Cargo Control, Inc.** | (11) | Provider of Mission Critical Inspection, Testing and Fuel Treatment Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/14/2021 |  | 10.88% | L+ | 6.50% |  | 6/4/2026 | 15218 | 15110 | 14685 |
| **CaseWorthy, Inc.** | (10) | SaaS Provider of Case Management Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 5/18/2022 |  |  | L+ | 6.00% |  | 5/18/2027 |  | (11) | (11) |
|  |  |  | Secured Debt | (9) | 5/18/2022 |  | 10.73% | L+ | 6.00% |  | 5/18/2027 | 7993 | 7914 | 7914 |
|  |  |  | Secured Debt | (9) | 5/18/2022 |  | 10.48% | L+ | 5.75% |  | 5/18/2027 | 6133 | 6079 | 6133 |
|  |  |  | Common Equity |  | 12/30/2022 | 245926 |  |  |  |  |  |  | 246 | 246 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14228 | 14282 |
| **Channel Partners Intermediateco, LLC** | (10) | Outsourced Consumer Services Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) (42) | 2/7/2022 |  | 10.72% | SF+ | 6.25% |  | 2/7/2027 | 1868 | 1767 | 1841 |
|  |  |  | Secured Debt | (9) (28) (29) | 2/7/2022 |  | 10.71% | SF+ | 6.25% |  | 2/7/2027 | 39047 | 38396 | 38484 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 40163 | 40325 |
| **Clarius BIGS, LLC** | (10) | Prints & Advertising Film Financing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) (17) | 9/23/2014 |  | 15.00% |  |  | 15.00% | 1/5/2015 | 2712 | 2712 | 19 |
| **Computer Data Source, LLC** | (10) | Third Party Maintenance Provider to the Data Center Ecosystem |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (43) | 8/6/2021 |  | 12.56% | L+ | 8.00% |  | 8/6/2026 | 5000 | 4928 | 4621 |
|  |  |  | Secured Debt | (9) | 8/6/2021 |  | 12.56% | L+ | 8.00% |  | 8/6/2026 | 18588 | 18315 | 17178 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 23243 | 21799 |
| **Construction Supply Investments, LLC** | (10) | Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 12/29/2016 | 861618 |  |  |  |  |  |  | 3335 | 21165 |
| **Dalton US Inc.** | (10) | Provider of Supplemental Labor Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 8/16/2022 |  | 11.90% | SF+ | 8.00% |  | 8/16/2027 | 1092 | 871 | 1077 |
|  |  |  | Secured Debt | (9) (25) (29) | 8/16/2022 |  |  | SF+ | 8.00% |  | 8/16/2027 |  | (74) | (74) |
|  |  |  | Secured Debt | (9) (29) | 8/16/2022 |  | 12.56% | SF+ | 8.00% |  | 8/16/2027 | 14389 | 14125 | 14186 |
|  |  |  | Common Stock |  | 8/16/2022 | 201 |  |  |  |  |  |  | 201 | 201 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 15123 | 15390 |
| **DTE Enterprises, LLC** | (10) | Industrial Powertrain Repair and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 4/13/2018 |  |  | L+ | 7.50% |  | 4/13/2023 |  | (1) | (1) |
|  |  |  | Secured Debt | (9) | 4/13/2018 |  | 12.24% | L+ | 7.50% |  | 4/13/2023 | 6074 | 6065 | 5934 |
|  |  |  | Class A Preferred Member Units |  | 4/13/2018 | 776316 | 8.00% |  |  | 8.00% |  |  | 776 | 380 |
|  |  |  | Class AA Preferred Member Units (non-voting) | (8) | 4/13/2018 |  | 10.00% |  |  | 10.00% |  |  | 1161 | 1161 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8001 | 7474 |
| **Dynamic Communities, LLC** | (10) | Developer of Business Events and Online Community Groups |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 12/20/2022 |  | 9.18% | SF+ | 4.50% | 9.18% | 12/31/2026 | 1875 | 1717 | 1717 |
|  |  |  | Secured Debt | (9) (29) | 12/20/2022 |  | 11.18% | SF+ | 6.50% | 11.18% | 12/31/2026 | 1875 | 1642 | 1642 |
|  |  |  | Preferred Equity |  | 12/20/2022 | 125000 |  |  |  |  |  |  | 128 | 128 |
|  |  |  | Preferred Equity |  | 12/20/2022 | 2376241 |  |  |  |  |  |  |  |  |
|  |  |  | Common Equity |  | 12/20/2022 | 1250000 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3487 | 3487 |
| **Eastern Wholesale Fence LLC** | (10) | Manufacturer and Distributor of Residential and Commercial Fencing Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/19/2020 |  | 11.73% | L+ | 7.00% |  | 10/30/2025 | 3346 | 3290 | 3276 |
|  |  |  | Secured Debt | (9) | 11/19/2020 |  | 11.73% | L+ | 7.00% |  | 10/30/2025 | 5021 | 4967 | 4916 |
|  |  |  | Secured Debt | (9) | 11/19/2020 |  | 11.73% | L+ | 7.00% |  | 10/30/2025 | 23456 | 23149 | 22967 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 31406 | 31159 |
| **Emerald Technologies Acquisition Co, Inc.** | (11) | Design & Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 2/10/2022 |  | 10.67% | SF+ | 6.25% |  | 2/10/2028 | 9258 | 9099 | 8787 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **EnCap Energy Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (EnCap Energy Capital Fund VIII, L.P.) | (8) (31) | 1/22/2015 | 0.14% |  |  |  |  |  |  | 3566 | 2092 |
|  |  |  | LP Interests (EnCap Energy Capital Fund VIII Co-<br>Investors, L.P.) | (8) (31) | 1/21/2015 | 0.38% |  |  |  |  |  |  | 1984 | 1037 |
|  |  |  | LP Interests (EnCap Energy Capital Fund IX, L.P.) | (8) (31) | 1/22/2015 | 0.10% |  |  |  |  |  |  | 3699 | 2019 |
|  |  |  | LP Interests (EnCap Energy Capital Fund X, L.P.) | (8) (31) | 3/25/2015 | 0.15% |  |  |  |  |  |  | 8236 | 9351 |
|  |  |  | LP Interests (EnCap Flatrock Midstream Fund II, L.P.) | (31) | 3/30/2015 | 0.84% |  |  |  |  |  |  | 5358 | 1688 |
|  |  |  | LP Interests (EnCap Flatrock Midstream Fund III, L.P.) | (8) (31) | 3/27/2015 | 0.25% |  |  |  |  |  |  | 6023 | 5718 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 28866 | 21905 |
| **Engineering Research & Consulting, LLC** | (10) | Provider of Engineering & Consulting Services to US Department of Defense |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 5/23/2022 |  | 11.68% | SF+ | 6.50% |  | 5/23/2027 | 131 | 85 | 131 |
|  |  |  | Secured Debt | (9) (29) | 5/23/2022 |  | 10.92% | SF+ | 6.50% |  | 5/23/2028 | 16338 | 16047 | 16338 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16132 | 16469 |
| **EPIC Y-Grade Services, LP** | (11) | NGL Transportation & Storage |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/22/2018 |  | 10.70% | L+ | 6.00% |  | 6/30/2027 | 6823 | 6764 | 6141 |
| **Event Holdco, LLC** | (10) | Event and Learning Management Software for Healthcare Organizations and Systems |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (30) | 12/22/2021 |  | 10.67% | L+ | 7.00% |  | 12/22/2026 | 3692 | 3663 | 3507 |
|  |  |  | Secured Debt | (9) (30) | 12/22/2021 |  | 10.67% | L+ | 7.00% |  | 12/22/2026 | 44308 | 43955 | 42083 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 47618 | 45590 |
| **Flip Electronics LLC** | (10) | Distributor of Hard-to-Find and Obsolete Electronic Components |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 3/24/2022 |  | 11.21% | SF+ | 7.50% |  | 1/2/2026 | 736 | 736 | 736 |
|  |  |  | Secured Debt | (9) (29) | 1/4/2021 |  | 12.19% | SF+ | 7.50% |  | 1/2/2026 | 11095 | 10852 | 11095 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 11588 | 11831 |
| **Fuse, LLC** | (11) | Cable Networks Operator |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 6/30/2019 |  | 12.00% |  |  |  | 6/28/2024 | 1810 | 1810 | 1512 |
|  |  |  | Common Stock |  | 6/30/2019 | 10429 |  |  |  |  |  |  | 256 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2066 | 1512 |
| **GeoStabilization International (GSI)** | (11) | Geohazard Engineering Services & Maintenance |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt |  | 1/2/2019 |  | 9.44% | SF+ | 5.25% |  | 12/19/2025 | 20497 | 20427 | 19472 |
| **GS HVAM Intermediate, LLC** | (10) | Specialized Food Distributor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/18/2019 |  | 11.20% | L+ | 6.50% |  | 10/2/2024 | 2177 | 2169 | 2171 |
|  |  |  | Secured Debt | (9) | 10/18/2019 |  | 11.24% | L+ | 6.50% |  | 10/2/2024 | 10734 | 10695 | 10705 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12864 | 12876 |
| **GULF PACIFIC ACQUISITION, LLC** | (10) | Rice Processor and Merchandiser |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 9/30/2022 |  | 10.42% | SF+ | 6.00% |  | 9/30/2028 | 252 | 233 | 252 |
|  |  |  | Secured Debt | (9) (25) (29) | 9/30/2022 |  |  | SF+ | 6.00% |  | 9/30/2028 |  | (15) | (15) |
|  |  |  | Secured Debt | (9) (29) | 9/30/2022 |  | 10.73% | SF+ | 6.00% |  | 9/30/2028 | 3661 | 3591 | 3661 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3809 | 3898 |
| **HDC/HW Intermediate Holdings** | (10) | Managed Services and Hosting Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 12/21/2018 |  | 14.34% | SF+ | 9.50% | 2.00% | 12/21/2023 | 320 | 319 | 311 |
|  |  |  | Secured Debt | (9) (29) | 12/21/2018 |  | 14.34% | SF+ | 9.50% | 2.00% | 12/21/2023 | 3277 | 3262 | 3186 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3581 | 3497 |
| **HEADLANDS OP-CO LLC** | (10) | Clinical Trial Sites Operator |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 8/1/2022 |  |  | SF+ | 6.50% |  | 8/1/2027 |  | (62) | (62) |
|  |  |  | Secured Debt | (9) (25) (29) | 8/1/2022 |  |  | SF+ | 6.50% |  | 8/1/2027 |  | (62) | (62) |
|  |  |  | Secured Debt | (9) (29) | 8/1/2022 |  | 10.62% | SF+ | 6.50% |  | 8/1/2027 | 16791 | 16483 | 16791 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16359 | 16667 |
| **Heartland Dental, LLC** | (10) | Dental Support Organization |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 9/9/2020 |  | 10.88% | L+ | 6.50% |  | 4/30/2025 | 14663 | 14430 | 13599 |
| **HOWLCO LLC** | (11) (13) (21) | Provider of Accounting and Business Development Software to Real Estate End Markets |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/19/2021 |  | 10.69% | L+ | 6.00% |  | 10/23/2026 | 25290 | 25290 | 24381 |
| **Hybrid Promotions, LLC** | (10) | Wholesaler of Licensed, Branded and Private Label Apparel |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (29) | 6/30/2021 |  | 12.07% | SF+ | 8.25% |  | 6/30/2026 | 7088 | 6986 | 6144 |
| **IG Parent Corporation** | (11) | Software Engineering |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) (41) | 7/30/2021 |  | 10.17% | SF+ | 5.75% |  | 7/30/2026 | 698 | 670 | 698 |
|  |  |  | Secured Debt | (9) (29) | 7/30/2021 |  | 10.17% | SF+ | 5.75% |  | 7/30/2028 | 14499 | 14304 | 14499 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14974 | 15197 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Implus Footcare, LLC** | (10) | Provider of Footwear and Related Accessories |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/1/2017 |  | 13.98% | L+ | 7.75% | 1.50% | 4/30/2024 | 18515 | 18384 | 17464 |
| **Independent Pet Partners Intermediate Holdings, LLC** | (10) | Omnichannel Retailer of Specialty Pet Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (35) | 8/20/2020 |  | 13.00% | P+ | 5.50% | 13.00% | 2/27/2023 | 7027 | 7027 | 7027 |
|  |  |  | Secured Debt | (14) | 12/10/2020 |  | 6.00% |  |  | 6.00% | 11/20/2023 | 18428 | 17664 | 7633 |
|  |  |  | Secured Debt | (29) | 11/28/2022 |  | 14.42% | SF+ | 10.00% | 14.42% | 2/27/2023 | 806 | 769 | 769 |
|  |  |  | Preferred Stock (non-voting) |  | 12/10/2020 |  | 6.00% |  |  | 6.00% |  |  | 3235 |  |
|  |  |  | Preferred Stock (non-voting) |  | 12/10/2020 |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 11/20/2018 | 1558333 |  |  |  |  |  |  | 1558 |  |
|  |  |  | Warrants | (25) (38) | 11/20/2018 | 242914 |  |  |  |  | 11/19/2028 |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 30253 | 15429 |
| **Industrial Services Acquisition, LLC** | (10) | Industrial Cleaning Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/13/2021 |  | 11.50% | L+ | 6.75% |  | 8/13/2026 | 463 | 430 | 463 |
|  |  |  | Secured Debt | (9) | 8/13/2021 |  | 11.50% | L+ | 6.75% |  | 8/13/2026 | 19239 | 18956 | 19239 |
|  |  |  | Preferred Member Units | (8) (30) | 1/31/2018 | 144 | 10.00% |  |  | 10.00% |  |  | 129 | 145 |
|  |  |  | Preferred Member Units | (8) (30) | 5/17/2019 | 80 | 20.00% |  |  | 20.00% |  |  | 92 | 93 |
|  |  |  | Member Units | (30) | 6/17/2016 | 900 |  |  |  |  |  |  | 900 | 600 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 20507 | 20540 |
| **Infolinks Media Buyco, LLC** | (10) | Exclusive Placement Provider to the Advertising Ecosystem |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 11/1/2021 |  |  | L+ | 5.50% |  | 11/1/2026 |  | (19) | (19) |
|  |  |  | Secured Debt | (9) | 11/1/2021 |  | 10.23% | L+ | 5.50% |  | 11/1/2026 | 8593 | 8461 | 8593 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8442 | 8574 |
| **Interface Security Systems, L.L.C** | (10) | Commercial Security & Alarm Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (44) | 12/9/2021 |  | 14.22% | L+ | 10.00% |  | 8/7/2023 | 1682 | 1682 | 1682 |
|  |  |  | Secured Debt | (9) (14) | 8/7/2019 |  | 12.07% | L+ | 7.00% | 1.00% | 8/7/2023 | 7313 | 7237 | 1082 |
|  |  |  | Common Stock |  | 12/7/2021 | 2143 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8919 | 2764 |
| **Intermedia Holdings, Inc.** | (11) | Unified Communications as a Service |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/3/2018 |  | 10.38% | L+ | 6.00% |  | 7/19/2025 | 20467 | 20418 | 15811 |
| **Invincible Boat Company, LLC.** | (10) | Manufacturer of Sport Fishing Boats |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/28/2019 |  | 10.14% | L+ | 6.50% |  | 8/28/2025 | 622 | 618 | 622 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) | 8/28/2019 |  | 10.17% | L+ | 6.50% |  | 8/28/2025 | 16889 | 16784 | 16889 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 17402 | 17511 |
| **INW Manufacturing, LLC** | (11) | Manufacturer of Nutrition and Wellness Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/19/2021 |  | 10.48% | L+ | 5.75% |  | 3/25/2027 | 7125 | 6968 | 6092 |
| **Isagenix International, LLC** | (11) | Direct Marketer of Health & Wellness Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (14) | 6/21/2018 |  | 9.93% | L+ | 7.75% |  | 6/14/2025 | 5053 | 5038 | 1537 |
| **Jackmont Hospitality, Inc.** | (10) | Franchisee of Casual Dining Restaurants |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/26/2022 |  | 12.23% | L+ | 7.50% |  | 11/4/2024 | 500 | 483 | 500 |
|  |  |  | Secured Debt | (9) | 11/8/2021 |  | 12.23% | L+ | 7.50% |  | 11/4/2024 | 2079 | 2079 | 2079 |
|  |  |  | Preferred Equity | (8) | 11/8/2021 | 2826667 | 12.00% |  |  | 12.00% |  |  | 123 | 623 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2685 | 3202 |
| **Joerns Healthcare, LLC** | (11) | Manufacturer and Distributor of Health Care Equipment & Supplies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 11/15/2021 |  | 18.00% |  |  |  | 1/31/2024 | 2297 | 2297 | 2297 |
|  |  |  | Secured Debt | (14) | 8/21/2019 |  | 19.75% |  |  | 19.75% | 8/21/2024 | 4034 | 3997 | 504 |
|  |  |  | Common Stock |  | 8/21/2019 | 472579 |  |  |  |  |  |  | 4429 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 10723 | 2801 |
| **JTI Electrical & Mechanical, LLC** | (10) | Electrical, Mechanical and Automation Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 12/22/2021 |  |  | L+ | 6.00% |  | 12/22/2026 |  | (135) | (135) |
|  |  |  | Secured Debt | (9) | 12/22/2021 |  | 10.73% | L+ | 6.00% |  | 12/22/2026 | 36947 | 36358 | 36947 |
|  |  |  | Common Equity |  | 12/22/2021 | 1684211 |  |  |  |  |  |  | 1684 | 2840 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 37907 | 39652 |
| **KMS, LLC** | (10) | Wholesaler of Closeout and Value-priced Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/4/2021 |  | 12.00% | L+ | 7.25% |  | 10/4/2026 | 1064 | 1019 | 995 |
|  |  |  | Secured Debt | (9) | 10/4/2021 |  | 12.00% | L+ | 7.25% |  | 10/4/2026 | 7505 | 7391 | 7022 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8410 | 8017 |
| **Kore Wireless Group Inc.** | (11) | Mission Critical Software Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (29) | 12/31/2018 |  | 10.08% | SF+ | 5.50% |  | 9/21/2024 | 11326 | 11280 | 10930 |
| **Lightbox Holdings, L.P.** | (11) | Provider of Commercial Real Estate Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 5/9/2019 |  | 9.73% | L+ | 5.00% |  | 5/9/2026 | 14475 | 14349 | 13968 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **LKCM Headwater Investments I, L.P.** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests | (8) (31) | 1/25/2013 | 2.27% |  |  |  |  |  |  | 1746 | 3197 |
| **LL Management, Inc.** | (10) | Medical Transportation Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 5/2/2019 |  | 11.21% | SF+ | 7.25% |  | 9/25/2023 | 8106 | 8087 | 8047 |
|  |  |  | Secured Debt | (9) (29) | 5/2/2019 |  | 11.67% | SF+ | 7.25% |  | 9/25/2023 | 9197 | 9160 | 9130 |
|  |  |  | Secured Debt | (9) (29) | 5/12/2022 |  | 11.67% | SF+ | 7.25% |  | 9/25/2023 | 10827 | 10733 | 10749 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 27980 | 27926 |
| **LLFlex, LLC** | (10) | Provider of Metal-Based Laminates |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/16/2021 |  | 12.74% | L+ | 9.00% |  | 8/16/2026 | 4444 | 4370 | 4350 |
| **Logix Acquisition Company, LLC** | (10) | Competitive Local Exchange Carrier |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 1/8/2018 |  | 10.13% | L+ | 5.75% |  | 12/22/2024 | 19662 | 19033 | 16221 |
| **Looking Glass Investments, LLC** | (12) (13) | Specialty Consumer Finance |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 7/1/2015 | 3 |  |  |  |  |  |  | 125 | 25 |
| **Mako Steel, LP** | (10) | Self-Storage Design & Construction |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (45) | 3/15/2021 |  | 11.79% | L+ | 7.25% |  | 3/15/2026 | 3103 | 3063 | 3083 |
|  |  |  | Secured Debt | (9) | 3/15/2021 |  | 11.09% | L+ | 7.25% |  | 3/15/2026 | 15324 | 15122 | 15224 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 18185 | 18307 |
| **MB2 Dental Solutions, LLC** | (11) | Dental Partnership Organization |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 1/28/2021 |  | 10.42% | SF+ | 6.00% |  | 1/29/2027 | 8338 | 8267 | 8338 |
|  |  |  | Secured Debt | (9) (29) | 1/28/2021 |  | 10.42% | SF+ | 6.00% |  | 1/29/2027 | 7876 | 7784 | 7876 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16051 | 16214 |
| **Microbe Formulas, LLC** | (10) | Nutritional Supplements Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 4/4/2022 |  |  | SF+ | 6.25% |  | 4/3/2028 |  | (63) | (63) |
|  |  |  | Secured Debt | (9) (29) | 4/4/2022 |  | 9.86% | SF+ | 6.25% |  | 4/3/2028 | 26075 | 25619 | 25181 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 25556 | 25118 |
| **Mills Fleet Farm Group, LLC** | (10) | Omnichannel Retailer of Work, Farm and Lifestyle Merchandise |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/24/2018 |  | 10.66% | L+ | 6.25% |  | 10/24/2024 | 18769 | 18562 | 18338 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **MonitorUS Holding, LLC** | (10) (13) (21) | SaaS Provider of Media Intelligence Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 5/24/2022 |  |  | L+ | 7.00% |  | 5/24/2027 |  | (64) | (64) |
|  |  |  | Secured Debt | (9) | 5/24/2022 |  | 11.73% | L+ | 7.00% |  | 5/24/2027 | 10107 | 9923 | 10714 |
|  |  |  | Secured Debt | (9) | 5/24/2022 |  | 11.73% | L+ | 7.00% |  | 5/24/2027 | 17038 | 16746 | 17038 |
|  |  |  | Common Stock |  | 8/30/2022 | 44445814 |  |  |  |  |  |  | 889 | 889 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 27494 | 28577 |
| **NBG Acquisition Inc** | (11) | Wholesaler of Home Décor Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 4/28/2017 |  | 9.67% | L+ | 5.50% |  | 4/26/2024 | 3849 | 3834 | 1251 |
| **NinjaTrader, LLC** | (10) | Operator of Futures Trading Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 12/18/2019 |  |  | L+ | 6.25% |  | 12/18/2024 |  | (1) |  |
|  |  |  | Secured Debt | (9) (25) | 12/18/2019 |  |  | L+ | 6.25% |  | 12/18/2024 |  | (38) | (38) |
|  |  |  | Secured Debt | (9) | 12/18/2019 |  | 9.99% | L+ | 6.25% |  | 12/18/2024 | 21666 | 21418 | 21666 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 21379 | 21628 |
| **NTM Acquisition Corp.** | (11) | Provider of B2B Travel Information Content |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/12/2016 |  | 9.50% | L+ | 6.25% | 1.00% | 6/7/2024 | 4358 | 4358 | 4228 |
| **NWN Corporation** | (10) | Value Added Reseller and Provider of Managed Services to a Diverse Set of Industries |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) (46) | 5/7/2021 |  | 10.85% | SF+ | 8.00% |  | 5/7/2026 | 3941 | 3797 | 3720 |
|  |  |  | Secured Debt | (9) (29) | 5/7/2021 |  | 12.56% | SF+ | 8.00% |  | 5/7/2026 | 39851 | 39094 | 37616 |
|  |  |  | Secured Debt |  | 12/16/2022 |  | 20.00% |  |  | 20.00% | 8/6/2026 | 6509 | 6194 | 6194 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 49085 | 47530 |
| **Ospemifene Royalty Sub LLC** | (10) | Estrogen-Deficiency Drug Manufacturer and Distributor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) | 7/8/2013 |  | 11.50% |  |  |  | 11/15/2026 | 4489 | 4489 | 103 |
| **OVG Business Services, LLC** | (10) | Venue Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/29/2021 |  | 10.64% | L+ | 6.25% |  | 11/19/2028 | 13930 | 13813 | 13094 |
| **Paragon Healthcare, Inc.** | (10) | Infusion Therapy Treatment Provider |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) (29) | 1/19/2022 |  | 10.26% | SF+ | 5.75% |  | 1/19/2027 | 541 | 437 | 530 |
|  |  |  | Secured Debt | (9) (29) (47) | 1/19/2022 |  | 9.96% | SF+ | 5.75% |  | 1/19/2027 | 2701 | 2609 | 2649 |
|  |  |  | Secured Debt | (9) (29) | 1/19/2022 |  | 9.81% | SF+ | 5.75% |  | 1/19/2027 | 18293 | 17852 | 17939 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 20898 | 21118 |
| **Project Eagle Holdings, LLC** | (10) | Provider of Secure Business Collaboration Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 7/6/2020 |  |  | L+ | 6.25% |  | 7/6/2026 |  | (18) | (18) |
|  |  |  | Secured Debt | (9) | 7/6/2020 |  | 10.64% | L+ | 6.25% |  | 7/6/2026 | 29475 | 29040 | 29419 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 29022 | 29401 |
| **PTL US Bidco, Inc** | (10) (13) | Manufacturers of Equipment, Including Drilling Rigs and Equipment, and Providers of Supplies and Services to Companies Involved In the Drilling, Evaluation and Completion of Oil and Gas Wells. |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 8/19/2022 |  |  | SF+ | 7.25% |  | 8/19/2027 |  | (174) | (174) |
|  |  |  | Secured Debt | (9) (29) | 8/19/2022 |  | 11.80% | SF+ | 7.25% |  | 8/19/2027 | 28265 | 27749 | 27911 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 27575 | 27737 |
| **RA Outdoors LLC** | (10) | Software Solutions Provider for Outdoor Activity Management |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 4/8/2021 |  |  | SF+ | 6.75% |  | 4/8/2026 |  | (11) | (11) |
|  |  |  | Secured Debt | (9) (29) | 4/8/2021 |  | 10.56% | SF+ | 6.75% |  | 4/8/2026 | 13369 | 13241 | 12094 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13230 | 12083 |
| **Research Now Group, Inc. and Survey Sampling International, LLC** | (11) | Provider of Outsourced Online Surveying |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/29/2017 |  | 8.84% | L+ | 5.50% |  | 12/20/2024 | 19966 | 19745 | 15116 |
| **RM Bidder, LLC** | (10) | Scripted and Unscripted TV and Digital Programming Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 11/12/2015 | 2779 |  |  |  |  |  |  | 46 | 19 |
|  |  |  | Warrants | (26) | 11/12/2015 | 327532 |  |  |  |  | 10/20/2025 |  | 425 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 471 | 19 |
| **Roof Opco, LLC** | (10) | Residential Re-Roofing/Repair |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 8/27/2021 |  | 10.97% | SF+ | 6.50% |  | 8/27/2026 | 311 | 300 | 311 |
|  |  |  | Secured Debt | (9) (29) | 8/27/2021 |  | 10.32% | SF+ | 6.50% |  | 8/27/2026 | 2333 | 2291 | 2333 |
|  |  |  | Secured Debt | (9) (29) | 8/27/2021 |  | 10.32% | SF+ | 6.50% |  | 8/27/2026 | 3173 | 3125 | 3173 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5716 | 5817 |
| **RTIC Subsidiary Holdings, LLC** | (10) | Direct-To-Consumer eCommerce Provider of Outdoor Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) (48) | 9/1/2020 |  | 12.02% | SF+ | 7.75% |  | 9/1/2025 | 1361 | 1343 | 1258 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) (29) | 9/1/2020 |  | 11.49% | SF+ | 7.75% |  | 9/1/2025 | 16623 | 16506 | 15367 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 17849 | 16625 |
| **Rug Doctor, LLC.** | (10) | Carpet Cleaning Products and Machinery |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 7/16/2021 |  | 13.02% | SF+ | 6.25% | 2.00% | 11/16/2024 | 5625 | 5590 | 5037 |
|  |  |  | Secured Debt | (9) (29) | 7/16/2021 |  | 13.02% | SF+ | 6.25% | 2.00% | 11/16/2024 | 8340 | 8223 | 7478 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13813 | 12515 |
| **Savers, Inc.** | (11) | For-Profit Thrift Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 5/14/2021 |  | 10.34% | SF+ | 5.50% |  | 4/26/2028 | 11286 | 11199 | 10938 |
| **SIB Holdings, LLC** | (10) | Provider of Cost Reduction Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 11.01% | L+ | 6.25% |  | 10/29/2026 | 417 | 408 | 393 |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 11.01% | L+ | 6.25% |  | 10/29/2026 | 1553 | 1527 | 1433 |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 11.01% | L+ | 6.25% |  | 10/29/2026 | 7750 | 7626 | 7151 |
|  |  |  | Common Equity |  | 10/29/2021 | 95238 |  |  |  |  |  |  | 200 | 146 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 9761 | 9123 |
| **South Coast Terminals Holdings, LLC** | (10) | Specialty Toll Chemical Manufacturer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 12/10/2021 |  |  | L+ | 5.75% |  | 12/13/2026 |  | (71) | (71) |
|  |  |  | Secured Debt | (9) | 12/10/2021 |  | 9.69% | L+ | 5.75% |  | 12/13/2026 | 41255 | 40603 | 41255 |
|  |  |  | Common Equity |  | 12/10/2021 | 863636 |  |  |  |  |  |  | 864 | 1316 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 41396 | 42500 |
| **SPAU Holdings, LLC** | (10) | Digital Photo Product Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 7/1/2022 |  |  | SF+ | 7.50% |  | 7/1/2027 |  | (57) | (57) |
|  |  |  | Secured Debt | (9) (29) | 7/1/2022 |  | 11.06% | SF+ | 7.50% |  | 7/1/2027 | 15928 | 15641 | 15928 |
|  |  |  | Common Stock |  | 7/1/2022 | 638710 |  |  |  |  |  |  | 639 | 639 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16223 | 16510 |
| **Staples Canada ULC** | (10) (13) (21) | Office Supplies Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (22) | 9/14/2017 |  | 11.83% | L+ | 7.00% |  | 9/12/2024 | 13740 | 13698 | 12481 |
| **Stellant Systems, Inc.** | (11) | Manufacturer of Traveling Wave Tubes and Vacuum Electronic Devices |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 10/22/2021 |  | 10.05% | SF+ | 5.50% |  | 10/1/2028 | 7623 | 7559 | 7166 |
| **Tacala Investment Corp.** | (33) | Quick Service Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (32) | 3/19/2021 |  | 7.88% | L+ | 3.50% |  | 2/5/2027 | 1974 | 1974 | 1904 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Team Public Choices, LLC** | (11) | Home-Based Care Employment Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/22/2020 |  | 9.93% | L+ | 5.00% |  | 12/18/2027 | 14964 | 14690 | 14290 |
| **Tectonic Financial, LLC** |  | Financial Services Organization |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Stock | (8) | 5/15/2017 | 200000 |  |  |  |  |  |  | 2000 | 5630 |
| **Tex Tech Tennis, LLC** | (10) | Sporting Goods & Textiles |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Equity | (30) | 7/7/2021 | 1000000 |  |  |  |  |  |  | 1000 | 1830 |
| **U.S. TelePacific Corp.** | (11) | Provider of Communications and Managed Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 5/17/2017 |  | 11.57% | SF+ | 1.25% | 7.25% | 5/2/2026 | 18352 | 18284 | 6859 |
| **USA DeBusk LLC** | (10) | Provider of Industrial Cleaning Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/22/2019 |  | 9.82% | L+ | 5.75% |  | 9/8/2026 | 33577 | 33031 | 33577 |
| **Veregy Consolidated, Inc.** | (11) | Energy Service Company |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 11/9/2020 |  |  | L+ | 5.25% |  | 11/3/2025 |  | (630) | (630) |
|  |  |  | Secured Debt | (9) | 11/9/2020 |  | 10.41% | L+ | 6.00% |  | 11/3/2027 | 17685 | 17381 | 15479 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16751 | 14849 |
| **Vida Capital, Inc** | (11) | Alternative Asset Manager |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 10/10/2019 |  | 10.38% | L+ | 6.00% |  | 10/1/2026 | 15448 | 15313 | 12049 |
| **Vistar Media, Inc.** | (10) | Operator of Digital Out-of-Home Advertising Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Stock |  | 4/3/2019 | 70207 |  |  |  |  |  |  | 767 | 2250 |
| **VORTEQ Coil Finishers, LLC** | (10) | Specialty Coating of Aluminum and Light-Gauge Steel |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Equity | (8) | 11/30/2021 | 1038462 |  |  |  |  |  |  | 1038 | 3930 |
| **Wahoo Fitness Acquisition L.L.C.** | (11) | Fitness Training Equipment Provider |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) (29) | 8/17/2021 |  | 10.64% | SF+ | 5.75% |  | 8/12/2028 | 14625 | 14268 | 8409 |
| **Wall Street Prep, Inc.** | (10) | Financial Training Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 7/19/2021 |  |  | L+ | 7.00% |  | 7/19/2026 |  | (6) | (6) |
|  |  |  | Secured Debt | (9) | 7/19/2021 |  | 10.74% | L+ | 7.00% |  | 7/19/2026 | 4235 | 4173 | 4146 |
|  |  |  | Common Stock |  | 7/19/2021 | 400000 |  |  |  |  |  |  | 400 | 420 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 4567 | 4560 |
| **Watterson Brands, LLC** | (10) | Facility Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/17/2021 |  | 10.73% | L+ | 6.00% |  | 12/17/2026 | 371 | 334 | 370 |
|  |  |  | Secured Debt | (9) | 12/17/2021 |  | 10.73% | L+ | 6.00% |  | 12/17/2026 | 391 | 361 | 391 |
|  |  |  | Secured Debt | (9) | 12/17/2021 |  | 10.73% | L+ | 6.00% |  | 12/17/2026 | 28957 | 28591 | 28947 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 29286 | 29708 |
| **West Star Aviation Acquisition, LLC** | (10) | Aircraft, Aircraft Engine and Engine Parts |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) (29) | 3/1/2022 |  |  | SF+ | 6.00% |  | 3/1/2028 |  | (20) | (20) |
|  |  |  | Secured Debt | (9) (29) | 3/1/2022 |  | 8.59% | SF+ | 6.00% |  | 3/1/2028 | 10794 | 10608 | 10685 |
|  |  |  | Common Stock |  | 3/1/2022 | 1541400 |  |  |  |  |  |  | 1541 | 1950 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12129 | 12615 |
| **Winter Services LLC** | (10) | Provider of Snow Removal and Ice Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (25) | 11/19/2021 |  |  | L+ | 7.00% |  | 11/19/2026 |  | (34) |  |
|  |  |  | Secured Debt | (9) (25) | 11/19/2021 |  |  | L+ | 7.00% |  | 11/19/2026 |  | (17) | (17) |
|  |  |  | Secured Debt | (9) | 11/19/2021 |  | 10.74% | L+ | 7.00% |  | 11/19/2026 | 10000 | 9848 | 9992 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 9797 | 9975 |
| **Xenon Arc, Inc.** | (10) | Tech-enabled Distribution Services to Chemicals and Food Ingredients Primary Producers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (25) | 12/17/2021 |  |  | L+ | 5.25% |  | 12/17/2026 |  | (218) | (218) |
|  |  |  | Secured Debt |  | 12/17/2021 |  | 10.84% | L+ | 5.25% |  | 12/17/2027 | 24300 | 23864 | 24135 |
|  |  |  | Secured Debt |  | 12/17/2021 |  | 8.63% | L+ | 5.25% |  | 12/17/2027 | 38311 | 37691 | 38051 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 61337 | 61968 |
| **YS Garments, LLC** | (11) | Designer and Provider of Branded Activewear |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/22/2018 |  | 9.51% | L+ | 5.50% |  | 8/9/2024 | 12659 | 12619 | 12127 |
| **Zips Car Wash, LLC** | (10) | Express Car Wash Operator |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (29) | 2/11/2022 |  | 11.67% | SF+ | 7.25% |  | 3/1/2024 | 17512 | 17279 | 17512 |
|  |  |  | Secured Debt | (9) (29) (33) | 2/11/2022 |  | 11.67% | SF+ | 7.25% |  | 3/1/2024 | 4389 | 4360 | 4379 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | **Investment Date<br>(24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (29)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  | 21639 | 21891 |
| **Subtotal Non-Control/Non-Affiliate Investments (84.4% of net assets at fair value)** |  |  |  |  |  |  |  |  |  | $1867414 | $1780646 |
| **Total Portfolio Investments, December 31, 2022 (194.5% of net assets at fair value)** |  |  |  |  |  |  |  |  |  | $3773752 | $4102177 |

---

____________________

(1)All investments are Lower Middle Market portfolio investments, unless otherwise noted. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Lower Middle Market portfolio investments. All of the Company's investments, unless otherwise noted, are encumbered either as security for the Company's Corporate Facility or SPV Facility (each as defined in *Note B.5. — Deferred Financing Costs*, and together the "Credit Facilities") or in support of the SBA-guaranteed debentures issued by the Funds.

(2)Debt investments are income producing, unless otherwise noted by footnote (14), as described below. Equity and warrants are non-income producing, unless otherwise noted by footnote (8), as described below.

(3)See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* and Schedule 12-14 for a summary of geographic location of portfolio companies.

(4)Principal is net of repayments. Cost is net of repayments and accumulated unearned income. Negative cost is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

(5)Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.

(6)Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.

(7)Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.

(8)Income producing through dividends or distributions.

(9)Index based floating interest rate is subject to contractual minimum interest rate. As noted in this schedule, 66% of these floating rate loans (based on the par amount) contain LIBOR or Term SOFR ("SOFR") floors which range between 0.50% and 2.00%, with a weighted-average floor of 1.04%.

(10)Private Loan portfolio investment. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Private Loan portfolio investments.

(11)Middle Market portfolio investment. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Middle Market portfolio investments.

(12)Other Portfolio investment. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Other Portfolio investments.

(13)Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.

(14)Non-accrual and non-income producing investment.

(15)All of the Company's portfolio investments are generally subject to restrictions on resale as "restricted securities."

(16)External Investment Manager. Investment is not encumbered as security for the Company's Credit Facilities or in support of the SBA-guaranteed debentures issued by the Funds.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

(17)Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.

(18)Investment fair value was determined using significant unobservable inputs, unless otherwise noted. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for further discussion. Negative fair value is the result of the capitalized discount on the loan or the unfunded commitment being valued below par.

(19)Investments may have a portion, or all, of their income received from Paid-in-Kind ("PIK") interest or dividends. PIK interest income and cumulative dividend income represent income not paid currently in cash. The difference between the Total Rate and PIK Rate represents the cash rate as of December 31, 2022.

(20)All portfolio company headquarters are based in the United States, unless otherwise noted.

(21)Portfolio company headquarters are located outside of the United States.

(22)In connection with the Company's debt investment in Staples Canada ULC and in an attempt to mitigate any potential adverse change in foreign exchange rates during the term of the Company's investment, the Company maintains a forward foreign currency contract with Cadence Bank to lend $16.9 million Canadian Dollars and receive $13.1 million U.S. Dollars with a settlement date of September 14, 2023. The unrealized appreciation on the forward foreign currency contract was $0.6 million as of December 31, 2022.

(23)The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of SOFR+6.00% (Floor 1.00%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.

(24)Investment date represents the date of initial investment in the security position.

(25)The position is unfunded and no interest income is being earned as of December 31, 2022. The position may earn a nominal unused facility fee on committed amounts.

(26)Warrants are presented in equivalent units with a strike price of $14.28 per unit.

(27)Warrants are presented in equivalent shares/units with a strike price of $0.01 per share/unit.

(28)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+6.25% (Floor 1.00%). Due to an amendment and subsequent funding during the quarter, the term loan facility has different floating rate reset dates. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(29)A majority of the variable rate loans in the Company's Investment Portfolio bear interest at a rate that may be determined by reference to either LIBOR ("L"), SOFR ("SF") or an alternate Base rate (commonly based on the Federal Funds Rate or the Prime rate ("P")), which typically resets every one, three, or six months at the borrower's option. SOFR based contracts may include a credit spread adjustment (the "Adjustment") that is charged in addition to the stated spread. The Adjustment is applied when the SOFR rate, plus the Adjustment, exceeds the stated floor rate, as applicable. As of December 31, 2022, SOFR based contracts in the portfolio had Adjustments ranging from 0.10% to 0.35%.

(30)Shares/Units represent ownership in a related Real Estate or HoldCo entity.

(31)Investment is not unitized. Presentation is made in percent of fully diluted ownership unless otherwise indicated.

(32)Short-term portfolio investments. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of short-term portfolio investments.

(33)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+7.25% (Floor 1.00%). Each new draw on the delayed draw term loan facility has a different floating rate reset date. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(34)The security has an effective contractual interest rate of 2.00% PIK + LIBOR+6.50%, Floor 1.00%, but the issuer may, in its discretion, elect to pay the PIK interest in cash. The rate presented represents the effective current yield based on actual payments received during the period.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2022**

**(dollars in thousands)**

(35)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+6.50% PIK or Prime+5.50% PIK. Revolving facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(36)Index based floating interest rate is subject to contractual maximum base rate of 2.50%.

(37)Index based floating interest rate is subject to contractual maximum base rate of 1.50%.

(38)Warrants are presented in equivalent shares/units with a strike price of $1.00 per share/unit.

(39)Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investment in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investment in this portfolio company is on non-accrual status.

(40)The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of SOFR+8.00% (Floor 1.50%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.

(41)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+5.75% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(42)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+6.25% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(43)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+8.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(44)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+10.00%. RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(45)As of December 31, 2022, borrowings under the loan facility bore interest at LIBOR+7.25% (Floor 0.75%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(46)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+8.00% (Floor 1.00%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(47)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+5.75% (Floor 1.00%). Delayed draw term loan facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

(48)As of December 31, 2022, borrowings under the loan facility bore interest at SOFR+7.75% (Floor 1.25%). RLOC facility permits the borrower to make an interest rate election regarding the base rate on each draw under the facility. The rate presented represents a weighted-average rate for borrowings under the facility, as of December 31, 2022.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Control Investments (5)** | | | | | | | | | | | | | | |
| **Analytical Systems Keco Holdings, LLC** |  | Manufacturer of Liquid and Gas Analyzers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/16/2019 |  | 12.00% | L + | 10.00% |  | 8/16/2024 | $4945 | $4736 | $4736 |
|  |  |  | Preferred Member Units |  | 8/16/2019 | 3200 |  |  |  |  |  |  | 3200 |  |
|  |  |  | Preferred Member Units |  | 5/20/2021 | 2427 |  |  |  |  |  |  | 2427 | 4894 |
|  |  |  | Warrants | (27) | 8/16/2019 | 420 |  |  |  |  | 8/16/2029 |  | 316 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 10679 | 9630 |
| **ASC Interests, LLC** |  | Recreational and Educational Shooting Facility |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/31/2019 |  | 13.00% |  |  |  | 7/31/2022 | 200 | 200 | 200 |
|  |  |  | Secured Debt |  | 8/1/2013 |  | 13.00% |  |  |  | 7/31/2022 | 1650 | 1636 | 1636 |
|  |  |  | Member Units |  | 8/1/2013 | 1500 |  |  |  |  |  |  | 1500 | 720 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3336 | 2556 |
| **ATS Workholding, LLC** | (10) | Manufacturer of Machine Cutting Tools and Accessories |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) | 11/16/2017 |  | 5.00% |  |  |  | 8/16/2023 | 4794 | 4635 | 3005 |
|  |  |  | Preferred Member Units |  | 11/16/2017 | 3725862 |  |  |  |  |  |  | 3726 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8361 | 3005 |
| **Barfly Ventures, LLC** | (10) | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 10/15/2020 |  | 7.00% |  |  |  | 10/31/2024 | 711 | 711 | 711 |
|  |  |  | Member Units |  | 10/26/2020 | 37 |  |  |  |  |  |  | 1584 | 1930 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2295 | 2641 |
| **Bolder Panther Group, LLC** |  | Consumer Goods and Fuel Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/31/2020 |  | 10.50% | L + | 9.00% |  | 12/31/2025 | 39000 | 38687 | 39000 |
|  |  |  | Class A Preferred Member Units | (8) | 12/31/2020 |  | 14.00% |  |  |  |  |  | 10194 | 10194 |
|  |  |  | Class B Preferred Member Units | (8) | 12/31/2020 | 140000 | 8.00% |  |  |  |  |  | 14000 | 23170 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 62881 | 72364 |
| **Brewer Crane Holdings, LLC** |  | Provider of Crane Rental and Operating Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 1/9/2018 |  | 11.00% | L + | 10.00% |  | 1/9/2023 | 8060 | 8037 | 8037 |
|  |  |  | Preferred Member Units | (8) | 1/9/2018 | 2950 |  |  |  |  |  |  | 4280 | 7710 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12317 | 15747 |
| **Bridge Capital Solutions Corporation** |  | Financial Services and Cash Flow Solutions Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 7/25/2016 |  | 13.00% |  |  |  | 12/11/2024 | 8813 | 8813 | 8813 |
|  |  |  | Warrants | (27) | 7/25/2016 | 82 |  |  |  |  | 7/25/2026 |  | 2132 | 4060 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  | Secured Debt | (30) | 7/25/2016 |  | 13.00% |  |  |  | 12/11/2024 | 1000 | 1000 | 1000 |
|  |  | Preferred Member Units | (8) (30) | 7/25/2016 | 17742 |  |  |  |  |  |  | 1000 | 1000 |
|  |  |  |  |  |  |  |  |  |  |  |  | 12945 | 14873 |
| **Café Brazil, LLC** | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units | (8) | 6/9/2006 | 1233 |  |  |  |  |  |  | 1742 | 2570 |
| **California Splendor Holdings LLC** | Processor of Frozen Fruits |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 3/30/2018 |  | 11.00% | L + | 10.00% |  | 3/30/2023 | 28000 | 27915 | 27915 |
|  |  | Preferred Member Units | (8) | 7/31/2019 | 6725 | 15.00% |  |  | 15.00% |  |  | 9510 | 9510 |
|  |  | Preferred Member Units | (8) | 3/30/2018 | 6157 |  |  |  |  |  |  | 10775 | 13275 |
|  |  |  |  |  |  |  |  |  |  |  |  | 48200 | 50700 |
| **CBT Nuggets, LLC** | Produces and Sells IT Training Certification Videos |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Member Units | (8) | 6/1/2006 | 416 |  |  |  |  |  |  | 1300 | 50620 |
| **Centre Technologies Holdings, LLC** | Provider of IT Hardware Services and Software Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 1/4/2019 |  | 12.00% | L + | 10.00% |  | 1/4/2024 | 9416 | 9370 | 8864 |
|  |  | Preferred Member Units |  | 1/4/2019 | 12696 |  |  |  |  |  |  | 5840 | 5840 |
|  |  |  |  |  |  |  |  |  |  |  |  | 15210 | 14704 |
| **Chamberlin Holding LLC** | Roofing and Waterproofing Specialty Contractor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 2/26/2018 |  | 9.00% | L + | 8.00% |  | 2/26/2023 | 17817 | 17738 | 17817 |
|  |  | Member Units | (8) | 2/26/2018 | 4347 |  |  |  |  |  |  | 11440 | 24140 |
|  |  | Member Units | (8) (30) | 11/2/2018 | 1047146 |  |  |  |  |  |  | 1322 | 1540 |
|  |  |  |  |  |  |  |  |  |  |  |  | 30500 | 43497 |
| **Charps, LLC** | Pipeline Maintenance and Construction |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Unsecured Debt |  | 8/26/2020 |  | 10.00% |  |  |  | 1/31/2024 | 5694 | 4599 | 5694 |
|  |  | Preferred Member Units | (8) | 2/3/2017 | 1829 |  |  |  |  |  |  | 1963 | 13990 |
|  |  |  |  |  |  |  |  |  |  |  |  | 6562 | 19684 |
| **Clad-Rex Steel, LLC** | Specialty Manufacturer of Vinyl-Clad Metal |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 12/20/2016 |  | 10.50% | L + | 9.50% |  | 1/15/2024 | 10480 | 10401 | 10401 |
|  |  | Member Units | (8) | 12/20/2016 | 717 |  |  |  |  |  |  | 7280 | 10250 |
|  |  | Secured Debt |  | 12/20/2016 |  | 10.00% |  |  |  | 12/20/2036 | 1081 | 1071 | 1071 |
|  |  | Member Units | (30) | 12/20/2016 | 800 |  |  |  |  |  |  | 210 | 530 |
|  |  |  |  |  |  |  |  |  |  |  |  | 18962 | 22252 |
| **CMS Minerals Investments** | Oil & Gas Exploration & Production |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Member Units | (8) (30) | 4/1/2016 | 100 |  |  |  |  |  |  | 1838 | 1974 |
| **Cody Pools, Inc.** |  | Designer of Residential and Commercial Pools |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/6/2020 |  | 12.25% | L + | 10.50% |  | 12/17/2026 | 42497 | 42117 | 42484 |
|  |  |  | Preferred Member Units | (8) (30) | 3/6/2020 | 587 |  |  |  |  |  |  | 8317 | 47640 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 50434 | 90124 |
| **Colonial Electric Company LLC** |  | Provider of Electrical Contracting Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/31/2021 |  | 12.00% |  |  |  | 3/31/2026 | 24570 | 24351 | 24351 |
|  |  |  | Preferred Member Units | (8) | 3/31/2021 | 17280 |  |  |  |  |  |  | 7680 | 9130 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 32031 | 33481 |
| **CompareNetworks Topco, LLC** |  | Internet Publishing and Web Search Portals |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 1/29/2019 |  | 10.00% | L + | 9.00% |  | 1/29/2024 | 6477 | 6452 | 6477 |
|  |  |  | Preferred Member Units | (8) | 1/29/2019 | 1975 |  |  |  |  |  |  | 1975 | 12000 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8427 | 18477 |
| **Copper Trail Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (CTMH, LP) | (31) | 7/17/2017 | 38.8% |  |  |  |  |  |  | 710 | 710 |
| **Datacom, LLC** |  | Technology and Telecommunications Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/31/2021 |  | 5.00% |  |  |  | 12/31/2025 | 8892 | 8296 | 7668 |
|  |  |  | Preferred Member Units |  | 3/31/2021 | 9000 |  |  |  |  |  |  | 2610 | 2610 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 10906 | 10278 |
| **Digital Products Holdings LLC** |  | Designer and Distributor of Consumer Electronics |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 4/1/2018 |  | 11.00% | L + | 10.00% |  | 4/1/2023 | 16853 | 16801 | 16801 |
|  |  |  | Preferred Member Units | (8) | 4/1/2018 | 3857 |  |  |  |  |  |  | 9501 | 9835 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 26302 | 26636 |
| **Direct Marketing Solutions, Inc.** |  | Provider of Omni-Channel Direct Marketing Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 2/13/2018 |  | 12.00% | L + | 11.00% |  | 2/13/2024 | 24070 | 23911 | 24048 |
|  |  |  | Preferred Stock | (8) | 2/13/2018 | 8400 |  |  |  |  |  |  | 8400 | 18350 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 32311 | 42398 |
| **Gamber-Johnson Holdings, LLC** |  | Manufacturer of Ruggedized Computer Mounting Systems |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/24/2016 |  | 9.50% | L + | 7.50% |  | 1/1/2025 | 21598 | 21535 | 21598 |
|  |  |  | Member Units | (8) | 6/24/2016 | 9042 |  |  |  |  |  |  | 17692 | 49700 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 39227 | 71298 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Garreco, LLC** |  | Manufacturer and Supplier of Dental Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (35) | 7/15/2013 |  | 9.00% | L + | 8.00% |  | 7/31/2022 | 4196 | 4196 | 4196 |
|  |  |  | Member Units | (8) | 7/15/2013 | 1200 |  |  |  |  |  |  | 1200 | 2270 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5396 | 6466 |
| **GRT Rubber Technologies LLC** |  | Manufacturer of Engineered Rubber Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/19/2014 |  | 8.10% | L + | 8.00% |  | 10/29/2026 | 38885 | 38672 | 38885 |
|  |  |  | Member Units | (8) | 12/19/2014 | 5879 |  |  |  |  |  |  | 13065 | 46190 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 51737 | 85075 |
| **Gulf Manufacturing, LLC** |  | Manufacturer of Specialty Fabricated Industrial Piping Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 8/31/2007 | 438 |  |  |  |  |  |  | 2980 | 5640 |
| **Gulf Publishing Holdings, LLC** |  | Energy Industry Focused Media and Publishing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (17) | 9/29/2017 |  | 10.50% | L + | 9.50% | 5.25% | 9/30/2020 | 257 | 257 | 257 |
|  |  |  | Secured Debt | (17) | 4/29/2016 |  | 12.50% |  |  | 6.25% | 4/29/2021 | 13565 | 13565 | 9717 |
|  |  |  | Member Units |  | 4/29/2016 | 3681 |  |  |  |  |  |  | 3681 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 17503 | 9974 |
| **Harris Preston Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (2717 MH, L.P.) | (31) | 10/1/2017 | 49.3% |  |  |  |  |  |  | 2703 | 3971 |
| **Harrison Hydra-Gen, Ltd.** |  | Manufacturer of Hydraulic Generators |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Stock |  | 6/4/2010 | 107456 |  |  |  |  |  |  | 718 | 3530 |
| **Jensen Jewelers of Idaho, LLC** |  | Retail Jewelry Store |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/14/2006 |  | 10.00% | P + | 6.75% |  | 11/14/2023 | 2550 | 2536 | 2550 |
|  |  |  | Member Units | (8) | 11/14/2006 | 627 |  |  |  |  |  |  | 811 | 12420 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 3347 | 14970 |
| **Johnson Downie Opco, LLC** |  | Executive Search Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/10/2021 |  | 13.00% | L + | 11.50% |  | 12/10/2026 | 11475 | 11344 | 11344 |
|  |  |  | Preferred Equity |  | 12/10/2021 | 3150 |  |  |  |  |  |  | 3150 | 3150 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14494 | 14494 |
| **KBK Industries, LLC** |  | Manufacturer of Specialty Oilfield and Industrial Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 1/23/2006 | 325 |  |  |  |  |  |  | 783 | 13620 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Kickhaefer Manufacturing Company, LLC** |  | Precision Metal Parts Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 10/31/2018 |  | 11.50% |  |  |  | 10/31/2023 | 20415 | 20324 | 20324 |
|  |  |  | Member Units |  | 10/31/2018 | 581 |  |  |  |  |  |  | 12240 | 12310 |
|  |  |  | Secured Debt |  | 10/31/2018 |  | 9.00% |  |  |  | 10/31/2048 | 3915 | 3876 | 3876 |
|  |  |  | Member Units | (8) (30) | 10/31/2018 | 800 |  |  |  |  |  |  | 992 | 2460 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 37432 | 38970 |
| **Market Force Information, LLC** |  | Provider of Customer Experience Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/28/2017 |  | 12.00% | L + | 11.00% |  | 7/28/2023 | 3400 | 3400 | 3400 |
|  |  |  | Secured Debt | (17) | 7/28/2017 |  | 12.00% |  |  | 12.00% | 7/28/2023 | 26079 | 25952 | 8936 |
|  |  |  | Member Units |  | 7/28/2017 | 743921 |  |  |  |  |  |  | 16642 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 45994 | 12336 |
| **MH Corbin Holding LLC** |  | Manufacturer and Distributor of Traffic Safety Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2015 |  | 13.00% |  |  |  | 3/31/2022 | 8250 | 8241 | 5934 |
|  |  |  | Preferred Member Units |  | 3/15/2019 | 66000 |  |  |  |  |  |  | 4400 |  |
|  |  |  | Preferred Member Units |  | 9/1/2015 | 4000 |  |  |  |  |  |  | 6000 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 18641 | 5934 |
| **MS Private Loan Fund I, LP** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Unsecured Debt |  | 2/11/2021 |  | 5.00% |  |  |  | 2/28/2022 | 63151 | 63151 | 63151 |
|  |  |  | LP Interests | (31) | 1/26/2021 | 12.1% |  |  |  |  |  |  | 2500 | 2581 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 65651 | 65732 |
| **MSC Adviser I, LLC** | (16) | Third Party Investment Advisory Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 11/22/2013 |  |  |  |  |  |  |  | 29500 | 140400 |
| **Mystic Logistics Holdings, LLC** |  | Logistics and Distribution Services Provider for Large Volume Mailers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/18/2014 |  | 12.00% |  |  |  | 1/17/2022 | 6378 | 6377 | 6378 |
|  |  |  | Common Stock | (8) | 8/18/2014 | 5873 |  |  |  |  |  |  | 2720 | 8840 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 9097 | 15218 |
| **NAPCO Precast, LLC** |  | Precast Concrete Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 1/31/2008 | 2955 |  |  |  |  |  |  | 2975 | 13560 |
| **Nebraska Vet AcquireCo, LLC** |  | Mixed-Animal Veterinary and Animal Health Product Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/31/2020 |  | 12.00% |  |  |  | 12/31/2025 | 10500 | 10412 | 10412 |
|  |  |  | Secured Debt |  | 12/31/2020 |  | 12.00% |  |  |  | 12/31/2025 | 4868 | 4829 | 4829 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  | Preferred Member Units |  | 12/31/2020 | 6987 |  |  |  |  |  |  | 6987 | 7700 |
|  |  |  |  |  |  |  |  |  |  |  |  | 22228 | 22941 |
| **NexRev LLC** | Provider of Energy Efficiency Products & Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 2/28/2018 |  | 11.00% |  |  |  | 2/28/2023 | 16217 | 16173 | 14045 |
|  |  | Preferred Member Units | (8) | 2/28/2018 | 86400000 |  |  |  |  |  |  | 6880 | 2690 |
|  |  |  |  |  |  |  |  |  |  |  |  | 23053 | 16735 |
| **NRP Jones, LLC** | Manufacturer of Hoses, Fittings and Assemblies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 12/21/2017 |  | 12.00% |  |  |  | 3/20/2023 | 2080 | 2080 | 2080 |
|  |  | Member Units | (8) | 12/22/2011 | 65962 |  |  |  |  |  |  | 3717 | 6440 |
|  |  |  |  |  |  |  |  |  |  |  |  | 5797 | 8520 |
| **NuStep, LLC** | Designer, Manufacturer and Distributor of Fitness Equipment |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 1/31/2017 |  | 7.50% | L + | 6.50% |  | 1/31/2025 | 1720 | 1720 | 1720 |
|  |  | Secured Debt |  | 1/31/2017 |  | 11.00% |  |  |  | 1/31/2025 | 17240 | 17236 | 17240 |
|  |  | Preferred Member Units |  | 1/31/2017 | 406 |  |  |  |  |  |  | 10200 | 13500 |
|  |  |  |  |  |  |  |  |  |  |  |  | 29156 | 32460 |
| **OMi Topco, LLC** |  | Manufacturer of Overhead Cranes |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 8/31/2021 |  | 12.00% |  |  |  | 8/31/2026 | 18000 | 17831 | 18000 |
|  |  | Preferred Member Units | (8) | 4/1/2008 | 900 |  |  |  |  |  |  | 1080 | 20210 |
|  |  |  |  |  |  |  |  |  |  |  |  | 18911 | 38210 |
| **Orttech Holdings, LLC** | Distributor of Industrial Clutches, Brakes and Other Components |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 7/30/2021 |  | 12.00% | L + | 11.00% |  | 7/31/2026 | 24375 | 24151 | 24151 |
|  |  | Preferred Stock | (8) (30) | 7/30/2021 | 10000 |  |  |  |  |  |  | 10000 | 10000 |
|  |  |  |  |  |  |  |  |  |  |  |  | 34151 | 34151 |
| **Pearl Meyer Topco LLC** | Provider of Executive Compensation Consulting Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt |  | 4/27/2020 |  | 12.00% |  |  |  | 4/27/2025 | 32674 | 32438 | 32674 |
|  |  | Member Units | (8) | 4/27/2020 | 13800 |  |  |  |  |  |  | 13000 | 26970 |
|  |  |  |  |  |  |  |  |  |  |  |  | 45438 | 59644 |
| **PPL RVs, Inc.** | Recreational Vehicle Dealer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Secured Debt | (9) | 10/31/2019 |  | 7.50% | L + | 7.00% |  | 11/15/2022 | 750 | 726 | 726 |
|  |  | Secured Debt | (9) | 11/15/2016 |  | 7.50% | L + | 7.00% |  | 11/15/2022 | 11655 | 11655 | 11655 |
|  |  | Common Stock | (8) | 6/10/2010 | 2000 |  |  |  |  |  |  | 2150 | 14360 |
|  |  |  |  |  |  |  |  |  |  |  |  | 14531 | 26741 |
| **Principle Environmental, LLC** | Noise Abatement Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt |  | 2/1/2011 |  | 13.00% |  |  |  | 11/15/2026 | 1473 | 1465 | 1465 |
|  |  |  | Secured Debt |  | 7/1/2011 |  | 13.00% |  |  |  | 11/15/2026 | 5924 | 5808 | 5808 |
|  |  |  | Preferred Member Units |  | 2/1/2011 | 21806 |  |  |  |  |  |  | 5709 | 11160 |
|  |  |  | Common Stock |  | 1/27/2021 | 1037 |  |  |  |  |  |  | 1200 | 710 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 14182 | 19143 |
| **Quality Lease Service, LLC** |  | Provider of Rigsite Accommodation Unit Rentals and Related Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 6/8/2015 | 1000 |  |  |  |  |  |  | 9213 | 2149 |
| **River Aggregates, LLC** |  | Processor of Construction Aggregates |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) (30) | 12/20/2013 | 1500 |  |  |  |  |  |  | 369 | 3280 |
| **Robbins Bros. Jewelry, Inc.** |  | Bridal Jewelry Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/15/2021 |  | 12.00% | L + | 11.00% |  | 12/15/2026 | 36360 | 35956 | 35956 |
|  |  |  | Preferred Equity |  | 12/15/2021 | 11070 |  |  |  |  |  |  | 11070 | 11070 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 47026 | 47026 |
| **Tedder Industries, LLC** |  | Manufacturer of Firearm Holsters and Accessories |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2018 |  | 12.00% |  |  |  | 8/31/2022 | 16240 | 16181 | 16181 |
|  |  |  | Preferred Member Units |  | 8/31/2018 | 505 |  |  |  |  |  |  | 8579 | 8579 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 24760 | 24760 |
| **Televerde, LLC** |  | Provider of Telemarketing and Data Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 1/6/2011 | 460 |  |  |  |  |  |  | 1290 | 7280 |
| **Trantech Radiator Topco, LLC** |  | Transformer Cooling Products and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 5/31/2019 |  | 12.00% |  |  |  | 5/31/2024 | 8720 | 8663 | 8712 |
|  |  |  | Common Stock | (8) | 5/31/2019 | 615 |  |  |  |  |  |  | 4655 | 8660 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13318 | 17372 |
| **UnionRock Energy Fund II, LP** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests | (8) (31) | 6/15/2020 | 49.6% |  |  |  |  |  |  | 3828 | 6122 |
| **Vision Interests, Inc.** |  | Manufacturer / Installer of Commercial Signage |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Series A Preferred Stock |  | 12/23/2011 | 3000000 |  |  |  |  |  |  | 3000 | 3000 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **VVS Holdco LLC** |  | Omnichannel Retailer of Animal Health Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9)(30) | 12/1/2021 |  | 7.00% | L + | 6.00% |  | 12/1/2026 | 1200 | 1170 | 1169 |
|  |  |  | Secured Debt | (30) | 12/1/2021 |  | 11.50% |  |  |  | 12/1/2026 | 30400 | 30100 | 30100 |
|  |  |  | Preferred Equity | (30) | 12/1/2021 | 11840 |  |  |  |  |  |  | 11840 | 11840 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 43110 | 43109 |
| **Ziegler's NYPD, LLC** |  | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 6/1/2015 |  | 12.00% |  |  |  | 10/1/2022 | 625 | 625 | 625 |
|  |  |  | Secured Debt |  | 10/1/2008 |  | 6.50% |  |  |  | 10/1/2022 | 1000 | 1000 | 1000 |
|  |  |  | Secured Debt |  | 10/1/2008 |  | 14.00% |  |  |  | 10/1/2022 | 2750 | 2750 | 2750 |
|  |  |  | Preferred Member Units |  | 6/30/2015 | 10072 |  |  |  |  |  |  | 2834 | 2130 |
|  |  |  | Warrants | (27) | 7/1/2015 | 587 |  |  |  |  | 10/1/2025 |  | 600 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 7809 | 6505 |
| **Subtotal Control Investments (83.3% of net assets at fair value)** |  |  |  |  |  |  |  |  |  |  |  |  | $1107597 | $1489257 |
| **Affiliate Investments (6)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **AAC Holdings, Inc.** | (11) | Substance Abuse Treatment Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/11/2020 |  | 18.00% |  |  | 8.00% | 6/25/2025 | $10202 | $10011 | $9794 |
|  |  |  | Common Stock |  | 12/11/2020 | 593928 |  |  |  |  |  |  | 3148 | 2079 |
|  |  |  | Warrants | (27) | 12/11/2020 | 554353 |  |  |  |  | 12/11/2025 |  |  | 1940 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13159 | 13813 |
| **AFG Capital Group, LLC** |  | Provider of Rent-to-Own Financing Solutions and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 4/25/2019 |  | 10.00% |  |  |  | 5/25/2022 | 144 | 144 | 144 |
|  |  |  | Preferred Member Units | (8) | 11/7/2014 | 186 |  |  |  |  |  |  | 1200 | 7740 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 1344 | 7884 |
| **ATX Networks Corp.** | (11) | Provider of Radio Frequency Management Equipment |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 9/1/2021 |  | 8.50% | L + | 7.50% |  | 9/1/2026 | 7667 | 7092 | 7092 |
|  |  |  | Unsecured Debt |  | 9/1/2021 |  | 10.00% |  |  | 10.00% | 9/1/2028 | 3067 | 1963 | 1963 |
|  |  |  | Common Stock |  | 9/1/2021 | 583 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 9055 | 9055 |
| **BBB Tank Services, LLC** |  | Maintenance, Repair and Construction Services to the Above-Ground Storage Tank Market |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Unsecured Debt | (9) (17) | 4/8/2016 |  | 12.00% | L + | 11.00% |  | 4/8/2021 | 4800 | 4800 | 2508 |
|  |  |  | Preferred Stock (non-voting) | (8) | 12/17/2018 |  | 15.00% |  |  | 15.00% |  |  | 162 |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Member Units |  | 4/8/2016 | 800000 |  |  |  |  |  |  | 800 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5762 | 2508 |
| **Boccella Precast Products LLC** |  | Manufacturer of Precast Hollow Core Concrete |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 9/23/2021 |  | 10.00% |  |  |  | 2/28/2027 | 320 | 320 | 320 |
|  |  |  | Member Units | (8) | 6/30/2017 | 2160000 |  |  |  |  |  |  | 2256 | 4830 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2576 | 5150 |
| **Brightwood Capital Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Brightwood Capital Fund V, LP) | (31) | 7/12/2021 | 15.8% |  |  |  |  |  |  | 1000 | 1000 |
| **Buca C, LLC** |  | Casual Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (17) | 6/30/2015 |  | 10.25% | L + | 9.25% |  | 6/30/2020 | 19491 | 19491 | 14370 |
|  |  |  | Preferred Member Units |  | 6/30/2015 | 6 | 6.00% |  |  | 6.00% |  |  | 4770 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 24261 | 14370 |
| **Career Team Holdings, LLC** |  | Provider of Workforce Training and Career Development Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/17/2021 |  | 12.50% |  |  |  | 12/17/2026 | 20250 | 20050 | 20050 |
|  |  |  | Class A Common Units |  | 12/17/2021 | 450000 |  |  |  |  |  |  | 4500 | 4500 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 24550 | 24550 |
| **Chandler Signs Holdings, LLC** | (10) | Sign Manufacturer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Class A Units |  | 1/4/2016 | 1500000 |  |  |  |  |  |  | 1500 | 460 |
| **Classic H&G Holdings, LLC** |  | Provider of Engineered Packaging Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/12/2020 |  | 7.00% | L + | 6.00% |  | 3/12/2025 | 4000 | 4000 | 4000 |
|  |  |  | Secured Debt |  | 3/12/2020 |  | 8.00% |  |  |  | 3/12/2025 | 19274 | 19139 | 19274 |
|  |  |  | Preferred Member Units | (8) | 3/12/2020 | 154 |  |  |  |  |  |  | 5760 | 15260 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 28899 | 38534 |
| **Congruent Credit Opportunities Funds** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Congruent Credit Opportunities Fund III, LP) | (8) (31) | 2/4/2015 | 17.4% |  |  |  |  |  |  | 10256 | 9959 |
| **DMA Industries, LLC** |  | Distributor of aftermarket ride control products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 11/19/2021 |  | 12.00% |  |  |  | 11/19/2026 | 21200 | 20993 | 20993 |
|  |  |  | Preferred Equity |  | 11/19/2021 | 5944 |  |  |  |  |  |  | 5944 | 5944 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 26937 | 26937 |
| **Dos Rios Partners** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | LP Interests (Dos Rios Partners, LP) | (31) | 4/25/2013 | 20.2% |  |  |  |  |  |  | 6605 | 10329 |
|  |  |  | LP Interests (Dos Rios Partners - A, LP) | (31) | 4/25/2013 | 6.4% |  |  |  |  |  |  | 2097 | 3280 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8702 | 13609 |
| **Dos Rios Stone Products LLC** | (10) | Limestone and Sandstone Dimension Cut Stone Mining Quarries |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Class A Preferred Units | (30) | 6/27/2016 | 2000000 |  |  |  |  |  |  | 2000 | 640 |
| **EIG Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (EIG Global Private Debt Fund-A, L.P.) | (8) (31) | 11/6/2015 | 5000000 |  |  |  |  |  |  | 594 | 547 |
| **Flame King Holdings, LLC** |  | Propane Tank and Accessories Distributor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 7.50% | L + | 6.50% |  | 10/31/2026 | 6400 | 6324 | 6324 |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 12.00% | L + | 11.00% |  | 10/31/2026 | 21200 | 20996 | 20996 |
|  |  |  | Preferred Equity |  | 10/29/2021 | 9360 |  |  |  |  |  |  | 10400 | 10400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 37720 | 37720 |
| **Freeport Financial Funds** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Freeport Financial SBIC Fund LP) | (31) | 3/23/2015 | 9.3% |  |  |  |  |  |  | 5974 | 6078 |
|  |  |  | LP Interests (Freeport First Lien Loan Fund III LP) | (8) (31) | 7/31/2015 | 6.0% |  |  |  |  |  |  | 7629 | 7231 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13603 | 13309 |
| **GFG Group, LLC.** |  | Grower and Distributor of a Variety of Plants and Products to Other Wholesalers, Retailers and Garden Centers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/31/2021 |  | 12.00% |  |  |  | 3/31/2026 | 12545 | 12435 | 12545 |
|  |  |  | Preferred Member Units | (8) | 3/31/2021 | 226 |  |  |  |  |  |  | 4900 | 6990 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 17335 | 19535 |
| **Harris Preston Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (HPEP 3, L.P.) | (31) | 8/9/2017 | 8.2% |  |  |  |  |  |  | 3193 | 4712 |
| **Hawk Ridge Systems, LLC** | (13) | Value-Added Reseller of Engineering Design and Manufacturing Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/2/2016 |  | 7.00% | L + | 6.00% |  | 1/15/2026 | 2585 | 2585 | 2585 |
|  |  |  | Secured Debt |  | 12/2/2016 |  | 8.00% |  |  |  | 1/15/2026 | 34800 | 34672 | 34800 |
|  |  |  | Preferred Member Units | (8) | 12/2/2016 | 226 |  |  |  |  |  |  | 2850 | 14680 |
|  |  |  | Preferred Member Units | (30) | 12/2/2016 | 226 |  |  |  |  |  |  | 150 | 770 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 40257 | 52835 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Houston Plating and Coatings, LLC** |  | Provider of Plating and Industrial Coating Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Unsecured Convertible Debt |  | 5/1/2017 |  | 8.00% |  |  |  | 5/1/2022 | 3000 | 3000 | 2960 |
|  |  |  | Member Units | (8) | 1/8/2003 | 322297 |  |  |  |  |  |  | 2352 | 3210 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5352 | 6170 |
| **I-45 SLF LLC** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units (Fully diluted 20.0%; 24.40% profits interest) (8) | (8) | 10/20/2015 |  |  |  |  |  |  |  | 19000 | 14387 |
| **Iron-Main Investments, LLC** |  | Consumer Reporting Agency Providing Employment Background Checks and Drug Testing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/3/2021 |  | 13.00% |  |  |  | 8/1/2026 | 4600 | 4557 | 4557 |
|  |  |  | Secured Debt |  | 9/1/2021 |  | 12.50% |  |  |  | 9/1/2026 | 3200 | 3170 | 3170 |
|  |  |  | Secured Debt |  | 8/3/2021 |  | 12.50% |  |  |  | 11/30/2026 | 20000 | 19805 | 19805 |
|  |  |  | Secured Debt |  | 8/3/2021 |  | 12.50% |  |  | 12.50% | 3/31/2022 | 8944 | 8944 | 8944 |
|  |  |  | Common Stock |  | 8/3/2021 | 179778 |  |  |  |  |  |  | 1798 | 1798 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 38274 | 38274 |
| **L.F. Manufacturing Holdings, LLC** | (10) | Manufacturer of Fiberglass Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Member Units (non-voting) | (8) | 1/1/2019 |  | 14.00% |  |  | 14.00% |  |  | 107 | 107 |
|  |  |  | Member Units |  | 12/23/2013 | 2179001 |  |  |  |  |  |  | 2019 | 2557 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2126 | 2664 |
| **OnAsset Intelligence, Inc.** |  | Provider of Transportation Monitoring / Tracking Products and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 5/20/2014 |  | 12.00% |  |  | 12.00% | 12/31/2022 | 935 | 935 | 935 |
|  |  |  | Secured Debt |  | 3/21/2014 |  | 12.00% |  |  | 12.00% | 12/31/2022 | 954 | 954 | 954 |
|  |  |  | Secured Debt |  | 5/10/2013 |  | 12.00% |  |  | 12.00% | 12/31/2022 | 2055 | 2055 | 2055 |
|  |  |  | Secured Debt |  | 4/18/2011 |  | 12.00% |  |  | 12.00% | 12/31/2022 | 4286 | 4286 | 4286 |
|  |  |  | Unsecured Debt |  | 6/5/2017 |  | 10.00% |  |  | 10.00% | 12/31/2022 | 192 | 192 | 192 |
|  |  |  | Preferred Stock |  | 4/18/2011 | 912 | 7.00% |  |  | 7.00% |  |  | 1981 |  |
|  |  |  | Common Stock |  | 4/15/2021 | 635 |  |  |  |  |  |  | 830 |  |
|  |  |  | Warrants | (27) | 4/18/2011 | 4699 |  |  |  |  | 5/10/2023 |  | 1089 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12322 | 8422 |
| **Oneliance, LLC** |  | Construction Cleaning Company |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/6/2021 |  | 12.00% | L + | 11.00% |  | 8/6/2026 | 5600 | 5547 | 5547 |
|  |  |  | Preferred Stock |  | 8/6/2021 | 1056 |  |  |  |  |  |  | 1056 | 1056 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6603 | 6603 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Rocaceia, LLC (Quality Lease and Rental Holdings, LLC)** |  | Provider of Rigsite Accommodation Unit Rentals and Related Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) (17) (36) | 6/30/2015 |  | 12.00% |  |  |  | 1/8/2018 | 30369 | 29865 |  |
|  |  |  | Preferred Member Units |  | 1/8/2013 | 250 |  |  |  |  |  |  | 2500 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 32365 |  |
| **SI East, LLC** |  | Rigid Industrial Packaging Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2018 |  | 10.25% |  |  |  | 8/31/2023 | 65850 | 65738 | 65850 |
|  |  |  | Preferred Member Units | (8) | 8/31/2018 | 157 |  |  |  |  |  |  | 1218 | 11570 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 66956 | 77420 |
| **Slick Innovations, LLC** |  | Text Message Marketing Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 9/13/2018 |  | 13.00% |  |  |  | 9/13/2023 | 5320 | 5248 | 5320 |
|  |  |  | Common Stock |  | 9/13/2018 | 70000 |  |  |  |  |  |  | 700 | 1510 |
|  |  |  | Warrants | (27) | 9/13/2018 | 18084 |  |  |  |  | 9/13/2028 |  | 181 | 400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6129 | 7230 |
| **Sonic Systems International, LLC** | (10) | Nuclear Power Staffing Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/20/2021 |  | 8.50% | L + | 7.50% |  | 8/20/2026 | 11982 | 11757 | 11757 |
|  |  |  | Common Stock |  | 8/20/2021 | 7866 |  |  |  |  |  |  | 1070 | 1070 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12827 | 12827 |
| **Superior Rigging & Erecting Co.** |  | Provider of Steel Erecting, Crane Rental & Rigging Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/31/2020 |  | 12.00% |  |  |  | 8/31/2025 | 21500 | 21332 | 21332 |
|  |  |  | Preferred Member Units |  | 8/31/2020 | 1571 |  |  |  |  |  |  | 4500 | 4500 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 25832 | 25832 |
| **The Affiliati Network, LLC** |  | Performance Marketing Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 8/9/2021 |  | 7.00% |  |  |  | 8/9/2026 | 280 | 262 | 262 |
|  |  |  | Secured Debt |  | 8/9/2021 |  | 11.83% |  |  |  | 8/9/2026 | 12961 | 12834 | 12834 |
|  |  |  | Preferred Stock | (8) | 8/9/2021 | 1280000 |  |  |  |  |  |  | 6400 | 6400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 19496 | 19496 |
| **UniTek Global Services, Inc.** | (11) | Provider of Outsourced Infrastructure Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/15/2018 |  | 8.50% | L + | 5.50% | 2.00% | 8/20/2024 | 397 | 396 | 371 |
|  |  |  | Secured Debt | (9) | 8/27/2018 |  | 8.50% | L + | 5.50% | 2.00% | 8/20/2024 | 1986 | 1974 | 1852 |
|  |  |  | Secured Convertible Debt |  | 1/1/2021 |  | 15.00% |  |  | 15.00% | 2/20/2025 | 1197 | 1197 | 2375 |
|  |  |  | Preferred Stock | (8) | 8/29/2019 | 1133102 | 20.00% |  |  | 20.00% |  |  | 1757 | 2833 |
|  |  |  | Preferred Stock |  | 8/21/2018 | 1521122 | 20.00% |  |  | 20.00% |  |  | 2188 | 1498 |
|  |  |  | Preferred Stock |  | 1/15/2015 | 4336866 | 13.50% |  |  | 13.50% |  |  | 7924 |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Preferred Stock |  | 6/30/2017 | 2281682 | 19.00% |  |  | 19.00% |  |  | 3667 |  |
|  |  |  | Common Stock |  | 4/1/2020 | 945507 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 19103 | 8929 |
| **Universal Wellhead Services Holdings, LLC** | (10) | Provider of Wellhead Equipment, Designs, and Personnel to the Oil & Gas Industry |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Member Units | (30) | 12/7/2016 | 716949 | 14.00% |  |  | 14.00% |  |  | 1032 |  |
|  |  |  | Member Units | (30) | 12/7/2016 | 4000000 |  |  |  |  |  |  | 4000 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5032 |  |
| **Volusion, LLC** |  | Provider of Online Software-as-a-Service eCommerce Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (17) | 1/26/2015 |  | 11.50% |  |  |  | 1/26/2020 | 17434 | 17434 | 17434 |
|  |  |  | Unsecured Convertible Debt |  | 5/16/2018 |  | 8.00% |  |  |  | 11/16/2023 | 409 | 409 | 409 |
|  |  |  | Preferred Member Units |  | 1/26/2015 | 4876670 |  |  |  |  |  |  | 14000 | 5990 |
|  |  |  | Warrants | (27) | 1/26/2015 | 1831355 |  |  |  |  | 1/26/2025 |  | 2576 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 34419 | 23833 |
| **Subtotal Affiliate Investments (30.7% of net assets at fair value)** |  |  |  |  |  |  |  |  |  |  |  |  | $578539 | $549214 |
| **Non-Control/Non-Affiliate Investments (7)** |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Acousti Engineering Company of Florida** | (10) | Interior Subcontractor Providing Acoustical Walls and Ceilings |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/2/2020 |  | 10.00% | L + | 8.50% |  | 11/2/2025 | $12111 | $12005 | $12111 |
|  |  |  | Secured Debt | (9) | 5/26/2021 |  | 14.00% | L + | 12.50% |  | 11/2/2025 | 850 | 841 | 850 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 12846 | 12961 |
| **ADS Tactical, Inc.** | (11) | Value-Added Logistics and Supply Chain Provider to the Defense Industry |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/29/2021 |  | 6.75% | L + | 5.75% |  | 3/19/2026 | 22136 | 21734 | 22012 |
| **American Health Staffing Group, Inc.** | (10) | Healthcare Temporary Staffing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/19/2021 |  | 7.00% | L + | 6.00% |  | 11/19/2026 | 7067 | 6988 | 6988 |
| **American Nuts, LLC** | (10) | Roaster, Mixer and Packager of Bulk Nuts and Seeds |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/21/2018 |  | 9.00% | L + | 8.00% |  | 4/10/2025 | 12017 | 11854 | 12017 |
| **American Teleconferencing Services, Ltd.** | (11) | Provider of Audio Conferencing and Video Collaboration Solutions |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) (14) (17) | 9/17/2021 |  | 7.50% | L + | 6.50% |  | 9/9/2021 | 2980 | 2980 | 89 |
|  |  |  | Secured Debt | (9) (14) | 5/19/2016 |  | 7.50% | L + | 6.50% |  | 6/28/2023 | 14370 | 13706 | 431 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 16686 | 520 |
| **ArborWorks, LLC** | (10) | Vegetation Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/9/2021 |  | 8.00% | L + | 7.00% |  | 11/9/2026 | 32605 | 31873 | 31873 |
|  |  |  | Common Equity |  | 11/9/2021 | 234 |  |  |  |  |  |  | 234 | 234 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 32107 | 32107 |
| **Arrow International, Inc** | (10) | Manufacturer and Distributor of Charitable Gaming Supplies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (23) | 12/21/2020 |  | 9.18% | L + | 7.93% |  | 12/21/2025 | 22500 | 22300 | 22500 |
| **AVEX Aviation Holdings, LLC** | (10) | Specialty Aircraft Dealer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/15/2021 |  | 7.50% | L + | 6.50% |  | 12/15/2026 | 13320 | 13005 | 13005 |
|  |  |  | Common Equity |  | 12/15/2021 | 360 |  |  |  |  |  |  | 360 | 360 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13365 | 13365 |
| **Berry Aviation, Inc.** | (10) | Charter Airline Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 7/6/2018 |  | 12.00% |  |  | 1.50% | 1/6/2024 | 4694 | 4674 | 4694 |
|  |  |  | Preferred Member Units | (8)(30) | 11/12/2019 | 122416 | 16.00% |  |  | 16.00% |  |  | 168 | 208 |
|  |  |  | Preferred Member Units | (30) | 7/6/2018 | 1548387 | 8.00% |  |  | 8.00% |  |  | 1671 | 2487 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6513 | 7389 |
| **Binswanger Enterprises, LLC** | (10) | Glass Repair and Installation Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/10/2017 |  | 9.50% | L + | 8.50% |  | 3/10/2023 | 12194 | 12107 | 12194 |
|  |  |  | Member Units |  | 3/10/2017 | 1050000 |  |  |  |  |  |  | 1050 | 730 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 13157 | 12924 |
| **Bluestem Brands, Inc.** | (11) | Multi-Channel Retailer of General Merchandise |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/28/2020 |  | 10.00% | L + | 8.50% |  | 8/28/2025 | 5357 | 5357 | 5337 |
|  |  |  | Common Stock | (8) | 10/1/2020 | 723184 |  |  |  |  |  |  | 1 | 1515 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5358 | 6852 |
| **Brainworks Software, LLC** | (10) | Advertising Sales and Newspaper Circulation Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (14) (17) | 8/12/2014 |  | 12.50% | P + | 9.25% |  | 7/22/2019 | 7817 | 7817 | 4201 |
| **Brightwood Capital Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (Brightwood Capital Fund III, LP) | (8) (31) | 7/21/2014 | 1.6% |  |  |  |  |  |  | 7200 | 4269 |
|  |  |  | LP Interests (Brightwood Capital Fund IV, LP) | (8) (31) | 10/26/2016 | 0.6% |  |  |  |  |  |  | 4350 | 4394 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 11550 | 8663 |
| **Burning Glass Intermediate Holding Company, Inc.** | (10) | Provider of Skills-Based Labor Market Analytics |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/14/2021 |  | 6.00% | L + | 5.00% |  | 6/10/2026 | 465 | 429 | 429 |
|  |  |  | Secured Debt | (9) | 6/14/2021 |  | 6.00% | L + | 5.00% |  | 6/10/2028 | 20134 | 19803 | 19985 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 20232 | 20414 |
| **Cadence Aerospace LLC** | (10) | Aerostructure Manufacturing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (32) | 11/14/2017 |  | 9.28% |  |  | 0.22% | 11/14/2023 | 28540 | 28399 | 26767 |
| **CAI Software LLC** |  | Provider of Specialized Enterprise Resource Planning Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Equity |  | 12/13/2021 | 1788527 |  |  |  |  |  |  | 1789 | 1789 |
|  |  |  | Preferred Equity |  | 12/13/2021 | 596176 |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 1789 | 1789 |
| **Camin Cargo Control, Inc.** | (11) | Provider of Mission Critical Inspection, Testing and Fuel Treatment Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/14/2021 |  | 7.50% | L + | 6.50% |  | 6/4/2026 | 15920 | 15775 | 15840 |
| **Cenveo Corporation** | (11) | Provider of Digital Marketing Agency Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Stock |  | 9/7/2018 | 322907 |  |  |  |  |  |  | 6183 | 2852 |
| **Chisholm Energy Holdings, LLC** | (10) | Oil & Gas Exploration & Production |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/15/2019 |  | 7.75% | L + | 6.25% |  | 5/15/2026 | 2857 | 2804 | 2663 |
| **Clarius BIGS, LLC** | (10) | Prints & Advertising Film Financing |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) (17) | 9/23/2014 |  | 15.00% |  |  | 15.00% | 1/5/2015 | 2756 | 2756 | 33 |
| **Computer Data Source, LLC** | (10) | Third Party Maintenance Provider to the Data Center Ecosystem |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/6/2021 |  | 8.50% | L + | 7.50% |  | 8/6/2026 | 21681 | 21234 | 21234 |
| **Construction Supply Investments, LLC** | (10) | Distribution Platform of Specialty Construction Materials to Professional Concrete and Masonry Contractors |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units | (8) | 12/29/2016 | 861618 |  |  |  |  |  |  | 3335 | 14640 |
| **Darr Equipment LP** | (10) | Heavy Equipment Dealer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/26/2017 |  | 12.50% |  |  | 1.00% | 6/22/2023 | 4685 | 4685 | 4227 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Warrants | (28) | 4/15/2014 | 915734 |  |  |  |  | 12/23/2023 |  | 474 | 160 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 5159 | 4387 |
| **DTE Enterprises, LLC** | (10) | Industrial Powertrain Repair and Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 4/13/2018 |  | 9.50% | L + | 8.00% |  | 4/13/2023 | 9324 | 9259 | 8884 |
|  |  |  | Class AA Preferred Member Units (non-voting) | (9) | 4/13/2018 |  | 10.00% |  |  | 10.00% |  |  | 1051 | 1051 |
|  |  |  | Class A Preferred Member Units |  | 4/13/2018 | 776316 | 8.00% |  |  | 8.00% |  |  | 776 | 320 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 11086 | 10255 |
| **Dynamic Communities, LLC** | (10) | Developer of Business Events and Online Community Groups |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/17/2018 |  | 9.50% | L + | 8.50% |  | 7/17/2023 | 5681 | 5638 | 5569 |
| **Eastern Wholesale Fence LLC** | (10) | Manufacturer and Distributor of Residential and Commercial Fencing Solutions |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/19/2020 |  | 8.00% | L + | 7.00% |  | 10/30/2025 | 31810 | 31238 | 31810 |
| **EnCap Energy Fund Investments** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests (EnCap Energy Capital Fund VIII, L.P.) | (8) (31) | 1/22/2015 | 0.1% |  |  |  |  |  |  | 3745 | 1599 |
|  |  |  | LP Interests (EnCap Energy Capital Fund VIII Co- Investors, L.P.) | (31) | 1/21/2015 | 0.4% |  |  |  |  |  |  | 2097 | 777 |
|  |  |  | LP Interests (EnCap Energy Capital Fund IX, L.P.) | (8) (31) | 1/22/2015 | 0.1% |  |  |  |  |  |  | 4047 | 2284 |
|  |  |  | LP Interests (EnCap Energy Capital Fund X, L.P.) | (8) (31) | 3/25/2015 | 0.1% |  |  |  |  |  |  | 8443 | 8276 |
|  |  |  | LP Interests (EnCap Flatrock Midstream Fund II, L.P.) | (31) | 3/30/2015 | 0.8% |  |  |  |  |  |  | 6582 | 2796 |
|  |  |  | LP Interests (EnCap Flatrock Midstream Fund III, L.P.) | (8) (31) | 3/27/2015 | 0.2% |  |  |  |  |  |  | 6082 | 5064 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 30996 | 20796 |
| **EPIC Y-Grade Services, LP** | (11) | NGL Transportation & Storage |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/22/2018 |  | 7.00% | L + | 6.00% |  | 6/30/2027 | 6892 | 6819 | 5862 |
| **Event Holdco, LLC** | (10) | Event and Learning Management Software for Healthcare Organizations and Systems |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9)(30) | 12/22/2021 |  | 8.00% | L + | 7.00% |  | 12/22/2026 | 51692 | 51135 | 51135 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Flip Electronics LLC** | (10) | Distributor of Hard-to-Find and Obsolete Electronic Components |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (33) | 1/4/2021 |  | 9.09% | L + | 8.09% |  | 1/2/2026 | 5400 | 5304 | 5287 |
| **Fortna Acquisition Co., Inc.** | (10) | Process, Physical Distribution and Logistics Consulting Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 7/23/2019 |  | 5.09% | L + | 5.00% |  | 4/8/2025 | 7595 | 7525 | 7595 |
| **Fuse, LLC** | (11) | Cable Networks Operator |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 6/30/2019 |  | 12.00% |  |  |  | 6/28/2024 | 1810 | 1810 | 1672 |
|  |  |  | Common Stock |  | 6/30/2019 | 10429 |  |  |  |  |  |  | 256 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2066 | 1672 |
| **GeoStabilization International (GSI)** | (11) | Geohazard Engineering Services & Maintenance |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 1/2/2019 |  | 5.35% | L + | 5.25% |  | 12/19/2025 | 20710 | 20615 | 20606 |
| **GoWireless Holdings, Inc.** | (11) | Provider of Wireless Telecommunications Carrier Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 1/10/2018 |  | 7.50% | L + | 6.50% |  | 12/22/2024 | 18534 | 18440 | 18576 |
| **Grupo Hima San Pablo, Inc.** | (11) | Tertiary Care Hospitals |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (14) (17) | 3/7/2013 |  | 9.25% | L + | 7.00% |  | 4/30/2019 | 4504 | 4504 | 1269 |
|  |  |  | Secured Debt | (14) (17) | 3/7/2013 |  | 13.75% |  |  |  | 10/15/2018 | 2055 | 2040 | 49 |
|  |  |  | Secured Debt | (17) | 3/7/2013 |  | 12.00% |  |  |  | 12/24/2021 | 147 | 147 | 147 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6691 | 1465 |
| **GS HVAM Intermediate, LLC** | (10) | Specialized Food Distributor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/18/2019 |  | 6.75% | L + | 5.75% |  | 10/2/2024 | 13243 | 13167 | 13243 |
| **GS Operating, LLC** | (10) | Distributor of Industrial and Specialty Parts |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 2/24/2020 |  | 8.00% | L + | 6.50% |  | 2/24/2025 | 28451 | 28068 | 28451 |
| **HDC/HW Intermediate Holdings** | (10) | Managed Services and Hosting Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/21/2018 |  | 8.50% | L + | 7.50% |  | 12/21/2023 | 3449 | 3419 | 3059 |
| **Heartland Dental, LLC** | (10) | Dental Support Organization |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 9/9/2020 |  | 7.50% | L + | 6.50% |  | 4/30/2025 | 14813 | 14477 | 14887 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **HOWLCO LLC** | (11) (13) (21) | Provider of Accounting and Business Development Software to Real Estate End Markets |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/19/2021 |  | 7.00% | L + | 6.00% |  | 10/23/2026 | 25546 | 25546 | 25546 |
| **Hybrid Promotions, LLC** | (10) | Wholesaler of Licensed, Branded and Private Label Apparel |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/30/2021 |  | 9.25% | L + | 8.25% |  | 6/30/2026 | 7088 | 6957 | 7028 |
| **IG Parent Corporation** | (11) | Software Engineering |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/30/2021 |  | 6.75% | L + | 5.75% |  | 7/30/2026 | 9591 | 9419 | 9419 |
| **Implus Footcare, LLC** | (10) | Provider of Footwear and Related Accessories |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/1/2017 |  | 8.75% | L + | 7.75% |  | 4/30/2024 | 18702 | 18471 | 17743 |
| **Independent Pet Partners Intermediate Holdings, LLC** | (10) | Omnichannel Retailer of Specialty Pet Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (29) | 8/20/2020 |  | 7.20% |  |  |  | 12/22/2022 | 6563 | 6563 | 6563 |
|  |  |  | Secured Debt |  | 12/10/2020 |  | 6.00% |  |  | 6.00% | 11/20/2023 | 17891 | 16861 | 16861 |
|  |  |  | Preferred Stock (non-voting) |  | 12/10/2020 |  | 6.00% |  |  | 6.00% |  |  | 3235 | 4329 |
|  |  |  | Preferred Stock (non-voting) |  | 12/10/2020 |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 11/20/2018 | 1558333 |  |  |  |  |  |  | 1558 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 28217 | 27753 |
| **Industrial Services Acquisition, LLC** | (10) | Industrial Cleaning Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/13/2021 |  | 7.75% | L + | 6.75% |  | 8/13/2026 | 19897 | 19490 | 19490 |
|  |  |  | Preferred Member Units | (8) (30) | 1/31/2018 | 144 | 10.00% |  |  | 10.00% |  |  | 120 | 164 |
|  |  |  | Preferred Member Units | (8) (30) | 5/17/2019 | 80 | 20.00% |  |  | 20.00% |  |  | 81 | 99 |
|  |  |  | Member Units | (30) | 6/17/2016 | 900 |  |  |  |  |  |  | 900 | 730 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 20591 | 20483 |
| **Infolinks Media Buyco, LLC** | (10) | Exclusive Placement Provider to the Advertising Ecosystem |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/1/2021 |  | 7.00% | L + | 6.00% |  | 11/1/2026 | 8680 | 8487 | 8487 |
| **Interface Security Systems, L.L.C** | (10) | Commercial Security & Alarm Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/9/2021 |  | 11.75% | L + | 10.00% |  | 8/7/2023 | 525 | 525 | 525 |
|  |  |  | Secured Debt | (9) (14) | 8/7/2019 |  | 9.75% | L + | 7.00% | 1.00% | 8/7/2023 | 7313 | 7237 | 5233 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 7762 | 5758 |
| **Intermedia Holdings, Inc.** | (11) | Unified Communications as a Service |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) | 8/3/2018 |  | 7.00% | L + | 6.00% |  | 7/19/2025 | 20627 | 20559 | 20527 |
| **Invincible Boat Company, LLC.** | (10) | Manufacturer of Sport Fishing Boats |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/28/2019 |  | 8.00% | L + | 6.50% |  | 8/28/2025 | 17510 | 17354 | 17510 |
| **INW Manufacturing, LLC** | (11) | Manufacturer of Nutrition and Wellness Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/19/2021 |  | 6.50% | L + | 5.75% |  | 3/25/2027 | 7406 | 7205 | 7258 |
| **Isagenix International, LLC** | (11) | Direct Marketer of Health & Wellness Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/21/2018 |  | 6.75% | L + | 5.75% |  | 6/14/2025 | 5158 | 5135 | 3865 |
| **Jackmont Hospitality, Inc.** | (10) | Franchisee of Casual Dining Restaurants |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/26/2015 |  | 8.00% | L + | 7.00% |  | 11/4/2024 | 2100 | 2100 | 2100 |
|  |  |  | Preferred Equity |  | 11/8/2021 | 2826667 |  |  |  |  |  |  | 314 | 314 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 2414 | 2414 |
| **Joerns Healthcare, LLC** | (11) | Manufacturer and Distributor of Health Care Equipment & Supplies |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/21/2019 |  | 7.00% | L + | 6.00% |  | 8/21/2024 | 4034 | 3989 | 3658 |
|  |  |  | Secured Debt |  | 11/15/2021 |  | 15.00% |  |  | 15.00% | 11/8/2022 | 1000 | 1004 | 1004 |
|  |  |  | Common Stock |  | 8/21/2019 | 472579 |  |  |  |  |  |  | 4429 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 9422 | 4662 |
| **JTI Electrical & Mechanical, LLC** | (10) | Electrical, Mechanical and Automation Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/22/2021 |  | 7.00% | L + | 6.00% |  | 12/22/2026 | 37895 | 36972 | 36972 |
|  |  |  | Common Equity |  | 12/22/2021 | 1684211 |  |  |  |  |  |  | 1684 | 1684 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 38656 | 38656 |
| **Klein Hersh, LLC** | (10) | Executive and C-Suite Placement for the Life Sciences and Healthcare Industries |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/13/2020 |  | 7.75% | L + | 7.00% |  | 11/13/2025 | 43321 | 42342 | 43278 |
| **KMS, LLC** | (10) | Wholesaler of Closeout and Value-priced Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/4/2021 |  | 8.25% | L + | 7.25% |  | 10/4/2026 | 7581 | 7415 | 7415 |
| **Kore Wireless Group Inc.** | (11) (13) | Mission Critical Software Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 12/31/2018 |  | 5.72% | L + | 5.50% |  | 12/20/2024 | 11415 | 11345 | 11400 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Laredo Energy, LLC** | (10) | Oil & Gas Exploration & Production |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 5/4/2020 | 1155952 |  |  |  |  |  |  | 11560 | 9659 |
| **LaserAway Intermediate Holdings II, LLC** | (11) | Aesthetic Dermatology Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/18/2021 |  | 6.50% | L + | 5.75% |  | 10/14/2027 | 4130 | 4050 | 4115 |
| **Lightbox Holdings, L.P.** | (11) | Provider of Commercial Real Estate Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 5/23/2019 |  | 5.22% | L + | 5.00% |  | 5/9/2026 | 14625 | 14460 | 14442 |
| **LKCM Headwater Investments I, L.P.** | (12) (13) | Investment Partnership |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | LP Interests | (8) (31) | 1/25/2013 | 2.3% |  |  |  |  |  |  | 1746 | 2541 |
| **LL Management, Inc.** | (10) | Medical Transportation Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/2/2019 |  | 8.25% | L + | 7.25% |  | 9/25/2023 | 17438 | 17309 | 17438 |
| **LLFlex, LLC** | (10) | Provider of Metal-Based Laminates |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/16/2021 |  | 10.00% | L + | 9.00% |  | 8/16/2026 | 4478 | 4382 | 4382 |
| **Logix Acquisition Company, LLC** | (10) | Competitive Local Exchange Carrier |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 1/8/2018 |  | 6.75% | L + | 5.75% |  | 12/22/2024 | 25850 | 24605 | 24428 |
| **Looking Glass Investments, LLC** | (12) (13) | Specialty Consumer Finance |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 7/1/2015 | 3 |  |  |  |  |  |  | 125 | 25 |
| **Mac Lean-Fogg Company** | (10) | Manufacturer and Supplier for Auto and Power Markets |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 4/22/2019 |  | 5.88% | L + | 5.25% |  | 12/22/2025 | 17080 | 16995 | 17080 |
|  |  |  | Preferred Stock |  | 10/1/2019 |  | 13.75% |  |  | 9.25% |  |  | 1920 | 1920 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 18915 | 19000 |
| **Mako Steel, LP** | (10) | Self-Storage Design & Construction |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/15/2021 |  | 8.00% | L + | 7.25% |  | 3/13/2026 | 17589 | 17267 | 17589 |
| **MB2 Dental Solutions, LLC** | (11) | Dental Partnership Organization |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 1/28/2021 |  | 7.00% | L + | 6.00% |  | 1/29/2027 | 11682 | 11531 | 11682 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Mills Fleet Farm Group, LLC** | (10) | Omnichannel Retailer of Work, Farm and Lifestyle Merchandise |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/24/2018 |  | 7.25% | L + | 6.25% |  | 10/24/2024 | 17781 | 17563 | 17781 |
| **NBG Acquisition Inc** | (11) | Wholesaler of Home Décor Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 4/28/2017 |  | 6.50% | L + | 5.50% |  | 4/26/2024 | 3987 | 3961 | 2758 |
| **NinjaTrader, LLC** | (10) | Operator of Futures Trading Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/18/2019 |  | 7.25% | L + | 6.25% |  | 12/18/2024 | 31425 | 30837 | 31368 |
| **NNE Partners, LLC** | (10) | Oil & Gas Exploration & Production |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 3/2/2017 |  | 9.37% | L + | 4.75% | 4.50% | 12/31/2023 | 24781 | 24709 | 23154 |
| **Northstar Group Services, Inc** | (11) | Commercial & Industrial Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/1/2021 |  | 6.50% | L + | 5.50% |  | 11/12/2026 | 10000 | 9952 | 10034 |
| **NTM Acquisition Corp.** | (11) | Provider of B2B Travel Information Content |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/12/2016 |  | 8.25% | L + | 6.25% | 1.00% | 6/7/2024 | 4598 | 4598 | 4552 |
| **NWN Corporation** | (10) | Value Added Reseller and Provider of Managed Services to a Diverse Set of Industries |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/7/2021 |  | 7.50% | L + | 6.50% |  | 5/7/2026 | 42972 | 42108 | 42323 |
| **Ospemifene Royalty Sub LLC** | (10) | Estrogen-Deficiency Drug Manufacturer and Distributor |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (14) | 7/8/2013 |  | 11.50% |  |  |  | 11/15/2026 | 4562 | 4562 | 112 |
| **OVG Business Services, LLC** | (10) | Venue Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/29/2021 |  | 7.25% | L + | 6.25% |  | 11/19/2028 | 14000 | 13861 | 13861 |
| **Project Eagle Holdings, LLC** | (10) | Provider of Secure Business Collaboration Software |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/6/2020 |  | 7.75% | L + | 6.75% |  | 7/6/2026 | 29738 | 29151 | 29714 |
| **PT Network, LLC** | (10) | Provider of Outpatient Physical Therapy and Sports Medicine Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/12/2017 |  | 8.50% | L + | 5.50% | 2.00% | 11/30/2023 | 8889 | 8889 | 8889 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Common Stock |  | 1/1/2020 | 2 |  |  |  |  |  |  |  | 80 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 8889 | 8969 |
| **RA Outdoors LLC** | (10) | Software Solutions Provider for Outdoor Activity Management |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 4/8/2021 |  | 7.75% | L + | 6.75% |  | 4/8/2026 | 19374 | 19193 | 18352 |
| **Research Now Group, Inc. and Survey Sampling International, LLC** | (11) | Provider of Outsourced Online Surveying |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/29/2017 |  | 6.50% | L + | 5.50% |  | 12/20/2024 | 20124 | 19789 | 19899 |
| **RM Bidder, LLC** | (10) | Scripted and Unscripted TV and Digital Programming Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Member Units |  | 11/12/2015 | 2779 |  |  |  |  |  |  | 46 | 26 |
|  |  |  | Warrants | (26) | 11/12/2015 | 187161 |  |  |  |  | 10/20/2025 |  | 425 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 471 | 26 |
| **Roof Opco, LLC** | (10) | Residential Re-Roofing/Repair |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/27/2021 |  | 7.00% | L + | 6.00% |  | 8/27/2026 | 2800 | 2704 | 2704 |
| **RTIC Subsidiary Holdings, LLC** | (10) | Direct-To-Consumer eCommerce Provider of Outdoor Products |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 9/1/2020 |  | 9.00% | L + | 7.75% |  | 9/1/2025 | 18191 | 17997 | 18191 |
| **Rug Doctor, LLC.** | (10) | Carpet Cleaning Products and Machinery |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/16/2021 |  | 7.25% | L + | 6.25% |  | 11/16/2024 | 11145 | 10902 | 10902 |
| **Salient Partners L.P.** | (11) | Provider of Asset Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/31/2018 |  | 7.00% | L + | 6.00% |  | 10/30/2022 | 6251 | 6247 | 4063 |
|  |  |  | Secured Debt | (9) | 9/30/2021 |  | 6.00% | L + | 5.00% |  | 10/30/2022 | 1250 | 1250 | 2435 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 7497 | 6498 |
| **Savers, Inc.** | (11) | For-Profit Thrift Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/14/2021 |  | 6.25% | L + | 5.50% |  | 4/26/2028 | 11400 | 11295 | 11386 |
| **SIB Holdings, LLC** | (10) | Provider of Cost Reduction Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/29/2021 |  | 7.00% | L + | 6.00% |  | 10/29/2026 | 6282 | 6134 | 6145 |
|  |  |  | Common Equity |  | 10/29/2021 | 95238 |  |  |  |  |  |  | 200 | 200 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 6334 | 6345 |
| **South Coast Terminals Holdings, LLC** | (10) | Specialty Toll Chemical Manufacturer |  |  |  |  |  |  |  |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
|  |  |  | Secured Debt | (9) | 12/10/2021 |  | 7.25% | L + | 6.25% |  | 12/13/2026 | 50704 | 49589 | 49589 |
|  |  |  | Common Equity |  | 12/10/2021 | 863636 |  |  |  |  |  |  | 864 | 864 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 50453 | 50453 |
| **Staples Canada ULC** | (10) (13) (21) | Office Supplies Retailer |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) (22) | 9/14/2017 |  | 8.00% | L + | 7.00% |  | 9/12/2024 | 16116 | 16039 | 15620 |
| **Stellant Systems, Inc.** | (11) | Manufacturer of Traveling Wave Tubes and Vacuum Electronic Devices |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/22/2021 |  | 6.25% | L + | 5.50% |  | 10/1/2028 | 7700 | 7625 | 7700 |
| **Student Resource Center, LLC** | (10) | Higher Education Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 6/25/2021 |  | 9.00% | L + | 8.00% |  | 6/25/2026 | 10969 | 10753 | 10826 |
| **Tacala Investment Corp.** | (34) | Quick Service Restaurant Group |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 3/19/2021 |  | 4.25% | L + | 3.50% |  | 2/5/2027 | 1995 | 1995 | 1994 |
| **Team Public Choices, LLC** | (11) | Home-Based Care Employment Service Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/22/2020 |  | 6.00% | L + | 5.00% |  | 12/18/2027 | 15109 | 14778 | 15071 |
| **Tectonic Financial, LLC** |  | Financial Services Organization |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Stock | (8) | 5/15/2017 | 200000 |  |  |  |  |  |  | 2000 | 4650 |
| **Tex Tech Tennis, LLC** | (10) | Sporting Goods & Textiles |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Common Stock | (30) | 7/7/2021 | 1000000 |  |  |  |  |  |  | 1000 | 1000 |
| **U.S. TelePacific Corp.** | (11) | Provider of Communications and Managed Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 5/17/2017 |  | 7.00% | L + | 6.00% |  | 5/2/2023 | 17088 | 16985 | 12917 |
| **USA DeBusk LLC** | (10) | Provider of Industrial Cleaning Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 10/22/2019 |  | 6.75% | L + | 5.75% |  | 9/8/2026 | 37281 | 36510 | 37281 |
| **Veregy Consolidated, Inc.** | (11) | Energy Service Company |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/9/2020 |  | 6.25% | L + | 5.25% |  | 11/3/2025 | 5875 | 5111 | 5111 |
|  |  |  | Secured Debt | (9) | 11/9/2020 |  | 7.00% | L + | 6.00% |  | 11/3/2027 | 14888 | 14524 | 14925 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 19635 | 20036 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Company (1) (20)** | | **Business Description** | **Type of Investment (2) (3) (15)** | | **Investment Date (24)** | **Shares/Units** | **Total Rate** | **Reference Rate and Spread (25)** | **Reference Rate and Spread (25)** | **PIK Rate (19)** | **Maturity<br>Date** | **Principal (4)** | **Cost (4)** | **Fair Value (18)** |
| **Vida Capital, Inc** | (11) | Alternative Asset Manager |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt |  | 10/10/2019 |  | 6.10% | L + | 6.00% |  | 10/1/2026 | 17089 | 16905 | 15850 |
| **Vistar Media, Inc.** | (10) | Operator of Digital Out-of-Home Advertising Platform |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Preferred Stock |  | 4/3/2019 | 70207 |  |  |  |  |  |  | 767 | 1726 |
| **VORTEQ Coil Finishers, LLC** | (10) | Specialty Coating of Aluminum and Light-Gauge Steel |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/30/2021 |  | 8.50% | L + | 7.50% |  | 11/30/2026 | 25962 | 25450 | 25450 |
|  |  |  | Common Equity |  | 11/30/2021 | 1038462 |  |  |  |  |  |  | 1038 | 1038 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 26488 | 26488 |
| **Wahoo Fitness Acquisition L.L.C.** | (11) | Fitness Training Equipment Provider |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/17/2021 |  | 6.75% | L + | 5.75% |  | 8/12/2028 | 15000 | 14569 | 14916 |
| **Wall Street Prep, Inc.** | (10) | Financial Training Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 7/19/2021 |  | 8.00% | L + | 7.00% |  | 7/19/2026 | 4373 | 4288 | 4285 |
|  |  |  | Common Stock |  | 7/19/2021 | 400000 |  |  |  |  |  |  | 400 | 400 |
|  |  |  |  |  |  |  |  |  |  |  |  |  | 4688 | 4685 |
| **Watterson Brands, LLC** | (10) | Facility Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/17/2021 |  | 7.25% | L + | 6.25% |  | 12/17/2026 | 25876 | 25267 | 25267 |
| **Winter Services LLC** | (10) | Provider of Snow Removal and Ice Management Services |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 11/19/2021 |  | 8.00% | L + | 7.00% |  | 11/19/2026 | 10278 | 10018 | 10061 |
| **Xenon Arc, Inc.** | (10) | Tech-enabled Distribution Services to Chemicals and Food Ingredients Primary Producers |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 12/17/2021 |  | 6.75% | L + | 6.00% |  | 12/17/2026 | 38600 | 37423 | 37423 |
| **YS Garments, LLC** | (11) | Designer and Provider of Branded Activewear |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  | Secured Debt | (9) | 8/22/2018 |  | 6.50% | L + | 5.50% |  | 8/9/2024 | 13034 | 12967 | 12578 |
| **Subtotal Non-Control/Non-Affiliate Investments (85.2% of net assets at fair value)** |  |  |  |  |  |  |  |  |  |  |  |  | $1573110 | $1523360 |
| **Total Portfolio Investments, December 31, 2021 (199.2% of net assets at fair value)** |  |  |  |  |  |  |  |  |  |  |  |  | $3259246 | $3561831 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

____________________

(1)All investments are Lower Middle Market portfolio investments, unless otherwise noted. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Lower Middle Market portfolio investments. All of the Company's investments, unless otherwise noted, are encumbered either as security for the Company's Corporate Facility or in support of the SBA-guaranteed debentures issued by the Funds.

(2)Debt investments are income producing, unless otherwise noted by footnote (14), as described below. Equity and warrants are non-income producing, unless otherwise noted by footnote (8), as described below.

(3)See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* and Schedule 12-14 for a summary of geographic location of portfolio companies.

(4)Principal is net of repayments. Cost is net of repayments and accumulated unearned income.

(5)Control investments are defined by the 1940 Act as investments in which more than 25% of the voting securities are owned or where the ability to nominate greater than 50% of the board representation is maintained.

(6)Affiliate investments are defined by the 1940 Act as investments in which between 5% and 25% (inclusive) of the voting securities are owned and the investments are not classified as Control investments.

(7)Non-Control/Non-Affiliate investments are defined by the 1940 Act as investments that are neither Control investments nor Affiliate investments.

(8)Income producing through dividends or distributions.

(9)Index based floating interest rate is subject to contractual minimum interest rate. As noted in this schedule, 67% of these floating rate loans (based on the par amount) contain LIBOR floors which range between 0.50% and 2.00%, with a weighted-average LIBOR floor of 1.06%.

(10)Private Loan portfolio investment. See *Note C—Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Private Loan portfolio investments.

(11)Middle Market portfolio investment. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Middle Market portfolio investments.

(12)Other Portfolio investment. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of Other Portfolio investments.

(13)Investment is not a qualifying asset as defined under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of total assets at the time of acquisition of any additional non-qualifying assets.

(14)Non-accrual and non-income producing investment.

(15)All of the Company's portfolio investments are generally subject to restrictions on resale as "restricted securities."

(16)External Investment Manager. Investment is not encumbered as security for the Company's Corporate Facility or in support of the SBA-guaranteed debentures issued by the Funds.

(17)Maturity date is under on-going negotiations with the portfolio company and other lenders, if applicable.

(18)Investment fair value was determined using significant unobservable inputs, unless otherwise noted. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for further discussion.

(19)Investments may have a portion, or all, of their income received from Paid-in-Kind ("PIK") interest or dividends. PIK interest income and cumulative dividend income represent income not paid currently in cash. The difference between the Total Rate and PIK Rate represents the cash rate as of December 31, 2021.

(20)All portfolio company headquarters are based in the United States, unless otherwise noted.

(21)Portfolio company headquarters are located outside of the United States.

(22)In connection with the Company's debt investment in Staples Canada ULC and in an attempt to mitigate any potential adverse change in foreign exchange rates during the term of the Company's investment, the Company maintains a forward foreign currency contract with Cadence Bank to lend $21.4 million

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[C](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments (Continued)**

**December 31, 2021**

**(dollars in thousands)**

Canadian Dollars and receive $16.9 million U.S. Dollars with a settlement date of September 14, 2022. The unrealized depreciation on the forward foreign currency contract was not significant as of December 31, 2021.

(23)The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR+7.25% (Floor 1.25%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.

(24)Investment date represents the date of initial investment in the security position.

(25)A majority of the variable rate loans in the Company's Investment Portfolio bear interest at a rate that may be determined by reference to either LIBOR ("L") or an alternate Base rate (commonly based on the Federal Funds Rate or the Prime rate ("P")), which typically resets every one, three, or six months at the borrower's option.

(26)Warrants are presented in equivalent units with a strike price of $14.28 per unit.

(27)Warrants are presented in equivalent shares/units with a strike price of $0.01 per share/unit.

(28)Warrants are presented in equivalent units with a strike price of $1.50 per unit.

(29)As of December 31, 2021, borrowings under the loan facility bore interest at LIBOR+6.00% or Prime+5.00%. Delayed draw term loan facility permits the borrower to make an interest rate election on each new tranche of borrowings under the facility. The rate presented represents a weighted-average rate for borrowings under the facility.

(30)Shares/Units represent ownership in a related Real Estate or HoldCo entity.

(31)Investment is not unitized. Presentation is made in percent of fully diluted ownership unless otherwise indicated.

(32)The security has an effective contractual interest rate of 2.00% PIK + LIBOR+6.50%, Floor 1.00%, but the issuer may, in its discretion, elect to pay the PIK interest in cash. The rate presented represents the effective current yield based on actual payments received during the period.

(33)The Company has entered into an intercreditor agreement that entitles the Company to the "last out" tranche of the first lien secured loans, whereby the "first out" tranche will receive priority as to the "last out" tranche with respect to payments of principal, interest, and any other amounts due thereunder. Therefore, the Company receives a higher interest rate than the contractual stated interest rate of LIBOR+7.96% (Floor 1.00%) per the credit agreement and the Consolidated Schedule of Investments above reflects such higher rate.

(34)Short-term portfolio investments. See *Note C — Fair Value Hierarchy for Investments — Portfolio Composition* for a description of short-term portfolio investments.

(35)Index based floating interest rate is subject to contractual maximum index rate of 1.50% as of December 31, 2021.

(36)Portfolio company is in a bankruptcy process and, as such, the maturity date of our debt investment in this portfolio company will not be finally determined until such process is complete. As noted in footnote (14), our debt investment in this portfolio company is on non-accrual status.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements**

**NOTE A — ORGANIZATION AND BASIS OF PRESENTATION**

**1. Organization**

Main Street Capital Corporation ("MSCC") is a principal investment firm primarily focused on providing customized debt and equity financing to lower middle market ("LMM") companies and debt capital to middle market ("Middle Market") companies. The portfolio investments of MSCC and its consolidated subsidiaries are typically made to support management buyouts, recapitalizations, growth financings, refinancings and acquisitions of companies that operate in a variety of industry sectors. MSCC seeks to partner with entrepreneurs, business owners and management teams and generally provides "one-stop" financing alternatives within its LMM investment strategy. MSCC and its consolidated subsidiaries invest primarily in secured debt investments, equity investments, warrants and other securities of LMM companies based in the United States and in secured debt investments of Middle Market companies generally headquartered in the United States.

MSCC was formed in March 2007 to operate as an internally managed business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). Because MSCC is internally managed, all of the executive officers and other employees are employed by MSCC. Therefore, MSCC does not pay any external investment advisory fees, but instead directly incurs the operating costs associated with employing investment and portfolio management professionals.

MSCC wholly owns several investment funds, including Main Street Mezzanine Fund, LP ("MSMF") and Main Street Capital III, LP ("MSC III" and, together with MSMF, the "Funds"), and each of their general partners. The Funds are each licensed as a Small Business Investment Company ("SBIC") by the United States Small Business Administration ("SBA").

MSC Adviser I, LLC (the "External Investment Manager") was formed in November 2013 as a wholly-owned subsidiary of MSCC to provide investment management and other services to parties other than MSCC and its subsidiaries ("External Parties") and receives fee income for such services. MSCC has been granted no-action relief by the Securities and Exchange Commission ("SEC") to allow the External Investment Manager to register as a registered investment adviser under the Investment Advisers Act of 1940, as amended. Since the External Investment Manager conducts all of its investment management activities for External Parties, it is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements.

MSCC has elected to be treated for U.S. federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a result, MSCC generally does not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that it distributes to its stockholders.

MSCC has certain direct and indirect wholly-owned subsidiaries that have elected to be taxable entities (the "Taxable Subsidiaries"). The primary purpose of the Taxable Subsidiaries is to permit MSCC to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes. MSCC also has certain direct and indirect wholly-owned subsidiaries formed for financing purposes (the "Structured Subsidiaries").

Unless otherwise noted or the context otherwise indicates, the terms "we," "us," "our," the "Company" and "Main Street" refer to MSCC and its consolidated subsidiaries, which include the Funds, the Taxable Subsidiaries and the Structured Subsidiaries.

**2. Basis of Presentation**

Main Street's consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP"). The Company is an investment company following accounting and reporting guidance in Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 946, *Financial Services—Investment Companies* ("ASC 946"). For each of the periods presented herein, Main Street's consolidated financial statements include the accounts of MSCC and its consolidated subsidiaries. The Investment

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Portfolio, as used herein, refers to all of Main Street's investments in LMM portfolio companies, investments in Private Loan portfolio companies, investments in Middle Market portfolio companies, Other Portfolio investments and the investment in the External Investment Manager (see *Note C — Fair Value Hierarchy for Investments — Portfolio Composition — Investment Portfolio Composition* for additional discussion of Main Street's Investment Portfolio and definitions for the defined terms Private Loan and Other Portfolio). Main Street's results of operations and cash flows for the years ended December 31, 2022, 2021 and 2020 and financial position as of December 31, 2022 and 2021, are presented on a consolidated basis. The effects of all intercompany transactions between MSCC and its consolidated subsidiaries have been eliminated in consolidation.

***Principles of Consolidation***

Under ASC 946, Main Street is precluded from consolidating other entities in which Main Street has equity investments, including those in which it has a controlling interest, unless the other entity is another investment company. An exception to this general principle in ASC 946 occurs if Main Street holds a controlling interest in an operating company that provides all or substantially all of its services directly to Main Street or to its portfolio companies. Accordingly, as noted above, MSCC's consolidated financial statements include the financial position and operating results for the Funds, the Taxable Subsidiaries and the Structured Subsidiaries. Main Street has determined that none of its portfolio investments qualify for this exception, including the investment in the External Investment Manager. Therefore, Main Street's Investment Portfolio is carried on the Consolidated Balance Sheets at fair value, as discussed further in *Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio*, with any adjustments to fair value recognized as "Net Unrealized Appreciation (Depreciation)" until the investment is realized, usually upon exit, resulting in any gain or loss being recognized as a "Net Realized Gain (Loss)", in both cases on the Consolidated Statements of Operations.&nbsp;&nbsp;&nbsp;&nbsp;

***Portfolio Investment Classification***

Main Street classifies its Investment Portfolio in accordance with the requirements of the 1940 Act. Under the 1940 Act, (a) "Control Investments" are defined as investments in which Main Street owns more than 25% of the voting securities or has rights to maintain greater than 50% of the board representation, (b) "Affiliate Investments" are defined as investments in which Main Street owns between 5% and 25% (inclusive) of the voting securities and does not have rights to maintain greater than 50% of the board representation and (c) "Non-Control/Non-Affiliate Investments" are defined as investments that are neither Control Investments nor Affiliate Investments. For purposes of determining the classification of its Investment Portfolio, Main Street has excluded consideration of any voting securities or board appointment rights held by third-party investment funds advised by the External Investment Manager.

 **NOTE B — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

**1. Valuation of the Investment Portfolio**

Main Street accounts for its Investment Portfolio at fair value. As a result, Main Street follows the provisions of ASC 820, *Fair Value Measurements and Disclosures* ("ASC 820"). ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value and enhances disclosure requirements for fair value measurements. ASC 820 requires Main Street to assume that the portfolio investment is to be sold in the principal market to independent market participants, which may be a hypothetical market. Market participants are defined as buyers and sellers in the principal market that are independent, knowledgeable and willing and able to transact.

Main Street's portfolio strategy calls for it to invest primarily in illiquid debt and equity securities issued by privately held, LMM companies and debt securities issued by Middle Market companies that are generally larger in size than the LMM companies and that can be more liquid than the debt securities issued by LMM companies. Main Street categorizes some of its investments in LMM companies and Middle Market companies as Private Loan portfolio investments, which are primarily debt securities in privately held companies that either (i) primarily have been originated directly by Main Street or (ii) to a lesser extent or secondarily, through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals" because of the small lender group size. In both cases, our Private Loan investments are typically made to a company to support the acquisition of the company by

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

a private equity sponsor. Private Loan investments are made in companies that are consistent with the size of companies Main Street invests in through its LMM portfolio and Middle Market portfolio. Main Street's portfolio also includes Other Portfolio investments which primarily consist of investments that are not consistent with the typical profiles for its LMM, Private Loan or Middle Market portfolio investments, including investments which may be managed by third parties. Main Street's portfolio may also include short-term portfolio investments that are atypical of Main Street's LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital and are more liquid than investments within the other portfolios. Main Street's portfolio investments may be subject to restrictions on resale.

For LMM portfolio investments, Main Street generally reviews external events, including private mergers, sales and acquisitions involving comparable companies, and includes these events in the valuation process by using an enterprise value waterfall methodology ("Waterfall") for its LMM equity investments and an income approach using a yield-to-maturity model ("Yield-to-Maturity") valuation method for its LMM debt investments. For Private Loan and Middle Market portfolio investments in debt securities for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value the investment in a current hypothetical sale using the Yield-to-Maturity valuation method. For Middle Market and short-term portfolio investments in debt securities for which it has determined that third-party quotes or other independent prices are available, Main Street primarily uses quoted prices in the valuation process. Main Street determines the appropriateness of the use of third-party broker quotes, if any, in determining fair value based on its understanding of the level of actual transactions used by the broker to develop the quote and whether the quote was an indicative price or binding offer, the depth and consistency of broker quotes and the correlation of changes in broker quotes with underlying performance of the portfolio company and other market indices. For its Other Portfolio equity investments, Main Street generally calculates the fair value of the investment primarily based on the net asset value ("NAV") of the fund and adjusts the fair value for other factors deemed relevant that would affect the fair value of the investment. All of the valuation approaches for Main Street's portfolio investments estimate the value of the investment as if Main Street were to sell, or exit, the investment as of the measurement date.

These valuation approaches consider the value associated with Main Street's ability to control the capital structure of the portfolio company, as well as the timing of a potential exit. For valuation purposes, "control" portfolio investments are composed of debt and equity securities in companies for which Main Street has a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company's board of directors. For valuation purposes, "non-control" portfolio investments are generally composed of debt and equity securities in companies for which Main Street does not have a controlling interest in the equity ownership of the portfolio company or the ability to nominate a majority of the portfolio company's board of directors.

Under the Waterfall valuation method, Main Street estimates the enterprise value of a portfolio company using a combination of market and income approaches or other appropriate valuation methods, such as considering recent transactions in the equity securities of the portfolio company or third-party valuations of the portfolio company, and then performs a Waterfall calculation by allocating the enterprise value over the portfolio company's securities in order of their preference relative to one another. The enterprise value is the fair value at which an enterprise could be sold in a transaction between two willing parties, other than through a forced or liquidation sale. Typically, privately held companies are bought and sold based on multiples of earnings before interest, taxes, depreciation and amortization ("EBITDA"), cash flows, net income, revenues, or in limited cases, book value. There is no single methodology for estimating enterprise value. For any one portfolio company, enterprise value is generally described as a range of values from which a single estimate of enterprise value is derived. In estimating the enterprise value of a portfolio company, Main Street analyzes various factors including the portfolio company's historical and projected financial results. Due to SEC deadlines for Main Street's quarterly and annual financial reporting, the operating results of a portfolio company used in the current period valuation are generally the results from the period ended three months prior to such valuation date and may include unaudited, projected, budgeted or pro forma financial information and may require adjustments for non-recurring items or to normalize the operating results that may require significant judgment in determining. In addition, projecting future financial results requires significant judgment regarding future growth assumptions. In evaluating the operating results, Main Street also analyzes the impact of exposure to litigation, loss of customers or other contingencies. After determining the appropriate enterprise value, Main Street allocates the enterprise value to investments in order of the legal priority of the various components of the portfolio company's capital structure. In applying the Waterfall valuation method, Main Street assumes the loans are paid-off at the principal amount in a change in control transaction and are not assumed by the buyer, which Main Street believes is consistent with its past transaction history and standard industry practices.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Under the Yield-to-Maturity valuation method, Main Street also uses the income approach to determine the fair value of debt securities based on projections of the discounted future free cash flows that the debt security will likely generate, including analyzing the discounted cash flows of interest and principal amounts for the debt security, as set forth in the associated loan agreements, as well as the financial position and credit risk of the portfolio company. Main Street's estimate of the expected repayment date of its debt securities is generally the maturity date of the instrument, as Main Street generally intends to hold its loans and debt securities to maturity. The Yield-to-Maturity analysis also considers changes in leverage levels, credit quality, portfolio company performance, changes in market-based interest rates and other factors. Main Street will generally use the value determined by the Yield-to-Maturity analysis as the fair value for that security; however, because of Main Street's general intent to hold its loans to maturity, the fair value will not exceed the principal amount of the debt security valued using the Yield-to-Maturity valuation method. A change in the assumptions that Main Street uses to estimate the fair value of its debt securities using the Yield-to-Maturity valuation method could have a material impact on the determination of fair value. If there is deterioration in credit quality or if a debt security is in workout status, Main Street may consider other factors in determining the fair value of the debt security, including the value attributable to the debt security from the enterprise value of the portfolio company or the proceeds that would most likely be received in a liquidation analysis.

Under the NAV valuation method, for an investment in an investment fund that does not have a readily determinable fair value, Main Street measures the fair value of the investment predominately based on the NAV of the investment fund as of the measurement date and adjusts the investment's fair value for factors known to Main Street that would affect that fund's NAV, including, but not limited to, fair values for individual investments held by the fund if Main Street holds the same investment or for a publicly traded investment. In addition, in determining the fair value of the investment, Main Street considers whether adjustments to the NAV are necessary in certain circumstances, based on the analysis of any restrictions on redemption of Main Street's investment as of the measurement date, recent actual sales or redemptions of interests in the investment fund, and expected future cash flows available to equity holders, including the rate of return on those cash flows compared to an implied market return on equity required by market participants, or other uncertainties surrounding Main Street's ability to realize the full NAV of its interests in the investment fund.

Pursuant to its internal valuation process and the requirements under the 1940 Act, Main Street performs valuation procedures on each of its portfolio investments quarterly. In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its LMM portfolio companies, Main Street, among other things, consults with a nationally recognized independent financial advisory services firm (the "Financial Advisory Firm"). The Financial Advisory Firm analyzes and provides observations, recommendations and an assurance certification regarding the Company's determinations of the fair value of its LMM portfolio company investments. The Financial Advisory Firm is generally consulted relative to Main Street's investments in each LMM portfolio company at least once every calendar year, and for Main Street's investments in new LMM portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders' best interest, to consult with the Financial Advisory Firm on its investments in one or more LMM portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street's investment in a LMM portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with and received an assurance certification from the Financial Advisory Firm in arriving at Main Street's determination of fair value on its investments in a total of 66 LMM portfolio companies for the year ended December 31, 2022, representing 94% of the total LMM portfolio at fair value as of December 31, 2022, and on a total of 54 LMM portfolio companies for the year ended December 31, 2021, representing 81% of the total LMM portfolio at fair value as of December 31, 2021. Excluding its investments in LMM portfolio companies that, as of December 31, 2022 and 2021, as applicable, had not been in the Investment Portfolio for at least twelve months subsequent to the initial investment or whose primary purpose is to own real estate for which a third-party appraisal is obtained on at least an annual basis, the percentage of the LMM portfolio reviewed and certified by the Financial Advisory Firm for both of the years ended December 31, 2022 and 2021 was 99% of the total LMM portfolio at fair value.

For valuation purposes, all of Main Street's Private Loan portfolio investments are non-control investments. For Private Loan portfolio investments for which it has determined that third-party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Private Loan debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Private Loan equity investments in a current hypothetical sale using the Waterfall valuation method.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

In addition to its internal valuation process, in arriving at estimates of fair value for its investments in its Private Loan portfolio companies, Main Street, among other things, consults with the Financial Advisory Firm. The Financial Advisory Firm analyzes and provides observations and recommendations and an assurance certification regarding the Company's determinations of the fair value of its Private Loan portfolio company investments. The Financial Advisory Firm is generally consulted relative to Main Street's investments in each Private Loan portfolio company at least once every calendar year, and for Main Street's investments in new Private Loan portfolio companies, at least once in the twelve-month period subsequent to the initial investment. In certain instances, Main Street may determine that it is not cost-effective, and as a result is not in its stockholders' best interest, to consult with the Financial Advisory Firm on its investments in one or more Private Loan portfolio companies. Such instances include, but are not limited to, situations where the fair value of Main Street's investment in a Private Loan portfolio company is determined to be insignificant relative to the total Investment Portfolio. Main Street consulted with and received an assurance certification from the Financial Advisory Firm in arriving at its determination of fair value on its investments in a total of 59 Private Loan portfolio companies for the year ended December 31, 2022, representing 76% of the total Private Loan portfolio at fair value as of December 31, 2022, and on a total of 39 Private Loan portfolio companies for the year ended December 31, 2021, representing 60% of the total Private Loan portfolio at fair value as of December 31, 2021. Excluding its investments in Private Loan portfolio companies that, as of December 31, 2022 and 2021, as applicable, had not been in the Investment Portfolio for at least twelve months subsequent to the initial investment and its investments in Private Loan portfolio companies that were not reviewed because the investment is valued based upon third-party quotes or other independent pricing, the percentage of the Private Loan portfolio reviewed and certified by the Financial Advisory Firm for the years ended December 31, 2022 and 2021 was 97% and 93% of the total Private Loan portfolio at fair value as of December 31, 2022 and 2021, respectively.

For valuation purposes, all of Main Street's Middle Market portfolio investments are non-control investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third party quotes or other independent pricing. For Middle Market portfolio investments for which it has determined that third party quotes or other independent pricing are not available or appropriate, Main Street generally estimates the fair value based on the assumptions that it believes hypothetical market participants would use to value such Middle Market debt investments in a current hypothetical sale using the Yield-to-Maturity valuation method and such Middle Market equity investments in a current hypothetical sale using the Waterfall valuation method. The Company generally consults on a limited basis with a financial advisory services firm in connection with determining the fair value of its Middle Market portfolio investments due to the nature of these investments. The vast majority (89% and 93%

as of December 31, 2022 and 2021, respectively) of the Middle Market portfolio investments (i) are valued using third-party quotes or other independent pricing services, (ii) Main Street has consulted with and received an assurance certification from the Financial Advisory Firm within the last twelve months or (iii) are new investments that have not been in the Investment Portfolio for at least twelve months subsequent to the initial investment.

For valuation purposes, all of Main Street's short-term portfolio investments are non-control investments. To the extent sufficient observable inputs are available to determine fair value, Main Street uses observable inputs to determine the fair value of these investments through obtaining third-party quotes or other independent pricing. Because all of the short-term portfolio investments are typically valued using third-party quotes or other independent pricing services, Main Street generally does not consult with any financial advisory services firms in connection with determining the fair value of its short-term portfolio investments.

For valuation purposes, all of Main Street's Other Portfolio investments are non-control investments. Main Street's Other Portfolio investments comprised 2.8% and 4.7% of Main Street's Investment Portfolio at fair value as of December 31, 2022 and 2021, respectively. Similar to the LMM investment portfolio, market quotations for Other Portfolio equity investments are generally not readily available. For its Other Portfolio equity investments, Main Street generally determines the fair value of these investments using the NAV valuation method.

For valuation purposes, Main Street's investment in the External Investment Manager is a control investment. Market quotations are not readily available for this investment, and as a result, Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach. In estimating the enterprise value, Main Street analyzes various factors, including the entity's historical and projected financial results, as well as its

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

size, marketability and performance relative to the population of market comparables. This valuation approach estimates the value of the investment as if Main Street were to sell, or exit, the investment. In addition, Main Street considers its ability to control the capital structure of the company, as well as the timing of a potential exit, in connection with determining the fair value of the External Investment Manager. Main Street consulted with and received an assurance certification from the Financial Advisory Firm in arriving at its determination of fair value for its investment in the External Investment Adviser as of December 31, 2022.

Due to the inherent uncertainty in the valuation process, Main Street's determination of fair value for its Investment Portfolio may differ materially from the values that would have been determined had a ready market for the securities existed. In addition, changes in the market environment, portfolio company performance and other events that may occur over the lives of the investments may cause the gains or losses ultimately realized on these investments to be materially different than the valuations currently assigned. Main Street determines the fair value of each individual investment and records changes in fair value as unrealized appreciation or depreciation.

Main Street uses an internally developed portfolio investment rating system in connection with its investment oversight, portfolio management and analysis and investment valuation procedures for its LMM, Private Loan and Middle Market portfolio companies. This system takes into account both quantitative and qualitative factors of each LMM, Private Loan and Middle Market portfolio company.

In December 2020, the SEC adopted Rule 2a-5 under the 1940 Act, which permits a BDC's board of directors to designate its executive officers or investment adviser as a valuation designee to determine the fair value for its investment portfolio, subject to the active oversight of the board. Main Street's Board of Directors has approved policies and procedures pursuant to Rule 2a-5 (the "Valuation Procedures") and has designated a group of its executive officers to serve as the Board of Directors' valuation designee. Main Street believes its Investment Portfolio as of December 31, 2022 and 2021 approximates fair value as of those dates based on the markets in which it operates and other conditions in existence on those reporting dates.

**2. Use of Estimates**

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from these estimates under different conditions or assumptions. Additionally, as explained in *Note B.1. — Summary of Significant Accounting Policies—Valuation of the Investment Portfolio*, the consolidated financial statements include investments in the Investment Portfolio whose values have been estimated by Main Street, pursuant to valuation policies and procedures approved and overseen by Main Street's Board of Directors, in the absence of readily ascertainable market values. Because of the inherent uncertainty of the Investment Portfolio valuations, those estimated values may differ materially from the values that would have been determined had a ready market for the securities existed.

Macroeconomic factors, including the COVID-19 pandemic, risk of recession, inflation, supply chain constraints or disruptions, geopolitical disruptions and rising interest rates, and the related effect on the U.S. and global economies, have impacted, and may continue to impact, the businesses and operating results of certain of Main Street's portfolio companies, as well as market interest rate spreads. As a result of these and other current effects of macroeconomic factors, as well as the uncertainty regarding the extent and duration of their impact, the valuation of Main Street's Investment Portfolio has and may continue to experience increased volatility.

**3. Cash and Cash Equivalents**

Cash and cash equivalents consist of cash and highly liquid investments with an original maturity of three months or less at the date of purchase. Cash and cash equivalents are carried at cost, which approximates fair value.

At December 31, 2022, cash balances totaling $46.3 million exceeded Federal Deposit Insurance Corporation insurance protection levels, subjecting the Company to risk related to the uninsured balance. All of the Company's cash deposits are held at large established high credit quality financial institutions and management believes that the risk of loss associated with any uninsured balances is remote.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

**4. Interest, Dividend and Fee Income**

Main Street records interest and dividend income on the accrual basis to the extent amounts are expected to be collected. Dividend income is recorded as dividends are declared by the portfolio company or at the point an obligation exists for the portfolio company to make a distribution. In accordance with Main Street's valuation policies, Main Street evaluates accrued interest and dividend income periodically for collectability. When a loan or debt security becomes 90 days or more past due, and if Main Street otherwise does not expect the debtor to be able to service its debt obligation, Main Street will generally place the loan or debt security on non-accrual status and cease recognizing interest income on that loan or debt security until the borrower has demonstrated the ability and intent to pay contractual amounts due. If a loan or debt security's status significantly improves regarding the debtor's ability to service the debt obligation, or if a loan or debt security is sold or written off, Main Street removes it from non-accrual status.

As of December 31, 2022, Main Street's total Investment Portfolio had 12 investments on non-accrual status, which comprised 0.6% of its fair value and 3.7% of its cost. As of December 31, 2021, Main Street's total Investment Portfolio had nine investments on non-accrual status, which comprised 0.7% of its fair value and 3.3% of its cost.

Main Street holds certain debt and preferred equity instruments in its Investment Portfolio that contain payment-in-kind ("PIK") interest and cumulative dividend provisions. The PIK interest, computed at the contractual rate specified in each debt agreement, is periodically added to the principal balance of the debt and is recorded as interest income. Thus, the actual collection of this interest may be deferred until the time of debt principal repayment. Cumulative dividends are recorded as dividend income, and any dividends in arrears are added to the balance of the preferred equity investment. The actual collection of these dividends in arrears may be deferred until such time as the preferred equity is redeemed or sold. To maintain RIC tax treatment (as discussed in *Note B.9. — Summary of Significant Accounting Policies—Income Taxes* below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the PIK interest and cumulative dividends in cash. Main Street stops accruing PIK interest and cumulative dividends and writes off any accrued and uncollected interest and dividends in arrears when it determines that such PIK interest and dividends in arrears are no longer collectible. For the years ended December 31, 2022, 2021 and 2020 (i) 1.4%, 2.6% and 2.8%, respectively, of Main Street's total investment income was attributable to PIK interest income not paid currently in cash and (ii) 0.5%, 0.6% and 0.8%, respectively, of Main Street's total investment income was attributable to cumulative dividend income not paid currently in cash.

Main Street may periodically provide services, including structuring and advisory services, to its portfolio companies or other third parties. For services that are separately identifiable and evidence exists to substantiate fair value, fee income is recognized as earned, which is generally when the investment or other applicable transaction closes. Fees received in connection with debt financing transactions for services that do not meet these criteria are treated as debt origination fees and are deferred and accreted into income over the life of the financing.

A presentation of total investment income Main Street received from its Investment Portfolio in each of the periods presented is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Interest, fee and dividend income: |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest income | $284746 | $193667 | $173676 |
| &nbsp;&nbsp;&nbsp;Dividend income | 76375 | 81153 | 36373 |
| &nbsp;&nbsp;&nbsp;Fee income | 15739 | 14227 | 12565 |
| Total interest, fee and dividend income | $376860 | $289047 | $222614 |

---

**5. Deferred Financing Costs**

Deferred financing costs include commitment fees and other direct costs related to Main Street's multi-year revolving credit facility (the "Corporate Facility") and special purpose vehicle revolving credit facility (the "SPV Facility"

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

and, together with the Corporate Facility, the "Credit Facilities") and its unsecured notes, as well as the commitment fees and leverage fees (3.4% of the total commitment and draw amounts, as applicable) on the SBIC debentures. See further discussion of Main Street's debt in *Note E — Debt*. Deferred financing costs in connection with the Credit Facilities are capitalized as an asset. Deferred financing costs in connection with all other debt arrangements are a direct deduction from the principal amount outstanding.

**6. Equity Offering Costs**

The Company's offering costs are charged against the proceeds from equity offerings when the proceeds are received.

**7. Unearned Income—Debt Origination Fees and Original Issue Discount and Discounts / Premiums to Par Value**

Main Street capitalizes debt origination fees received in connection with financings and reflects such fees as unearned income netted against the applicable debt investments. The unearned income from the fees is accreted into income over the life of the financing.

In connection with its portfolio debt investments, Main Street sometimes receives nominal cost warrants or warrants with an exercise price below the fair value of the underlying equity (together, "nominal cost equity") that are valued as part of the negotiation process with the particular portfolio company. When Main Street receives nominal cost equity, Main Street allocates its cost basis in its investment between its debt security and its nominal cost equity at the time of origination based on amounts negotiated with the particular portfolio company. The allocated amounts are based upon the fair value of the nominal cost equity, which is then used to determine the allocation of cost to the debt security. Any discount recorded on a debt investment resulting from this allocation is reflected as unearned income, which is netted against the applicable debt investment, and accreted into interest income over the life of the debt investment. The actual collection of this interest is deferred until the time of debt principal repayment.

Main Street may also purchase debt securities at a discount or at a premium to the par value of the debt security. In the case of a purchase at a discount, Main Street records the investment at the par value of the debt security net of the discount, and the discount is accreted into interest income over the life of the debt investment. In the case of a purchase at a premium, Main Street records the investment at the par value of the debt security plus the premium, and the premium is amortized as a reduction to interest income over the life of the debt investment.

To maintain RIC tax treatment (as discussed in *Note B.9. — Summary of Significant Accounting Policies — Income Taxes* below), these non-cash sources of income may need to be paid out to stockholders in the form of distributions, even though Main Street may not have collected the interest income. For the years ended December 31, 2022, 2021 and 2020, 1.8%, 2.0% and 2.7%, respectively, of Main Street's total investment income was attributable to interest income from the accretion of discounts associated with debt investments, net of any premium reduction.

**8. Share-Based Compensation**

Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718, *Compensation — Stock Compensation.* Accordingly, for restricted stock awards, Main Street measures the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.

Main Street has also adopted Accounting Standards Update ("ASU") 2016-09, *Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting*, which requires that all excess tax benefits and tax deficiencies (including tax benefits of dividends on share-based payment awards) be recognized as income tax expense or benefit in the income statement and not delay recognition of a tax benefit until the tax benefit is realized through a reduction to taxes payable. Accordingly, the tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. Additionally, Main Street has elected to account for forfeitures as they occur.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

**9. Income Taxes**

MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC's taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds and Structured Subsidiaries, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its "investment company taxable income" (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to twelve months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) the filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.

The Taxable Subsidiaries primarily hold certain equity investments for Main Street. The Taxable Subsidiaries permit Main Street to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes and to continue to comply with the "source-of-income" requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with Main Street for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in Main Street's consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from their book income, or loss, due to temporary book and tax timing differences and permanent differences. The Taxable Subsidiaries are each taxed at corporate income tax rates based on their taxable income. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the Taxable Subsidiaries are reflected in Main Street's consolidated financial statements.

The External Investment Manager is an indirect wholly-owned subsidiary of MSCC owned through a Taxable Subsidiary and is a disregarded entity for tax purposes. The External Investment Manager has entered into a tax sharing agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio investment of MSCC and is not included as a consolidated subsidiary of MSCC in MSCC's consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for its stand-alone financial reporting purposes the External Investment Manager is treated as if it is taxed at corporate income tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the External Investment Manager are reflected in the External Investment Manager's separate financial statements.

The Taxable Subsidiaries and the External Investment Manager use the liability method in accounting for income taxes. Deferred tax assets and liabilities are recorded for temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements, using statutory tax rates in effect for the year in which the temporary differences are expected to reverse. A valuation allowance is provided, if necessary, against deferred tax assets when it is more likely than not that some portion or all of the deferred tax asset will not be realized. Main Street's net assets as included on the Consolidated Balance Sheets and Consolidated Statements of Changes in Net Assets include an adjustment to classification as a result of permanent book-to-tax differences, which include differences in the book and tax treatment of income and expenses.

Taxable income generally differs from net income for financial reporting purposes due to temporary and permanent differences in the recognition of income and expenses. Taxable income generally excludes net unrealized appreciation or depreciation, as investment gains or losses are not included in taxable income until they are realized.

**10. Net Realized Gains or Losses and Net Unrealized Appreciation or Depreciation**

Realized gains or losses are measured by the difference between the net proceeds from the sale or redemption of an investment or a financial instrument and the cost basis of the investment or financial instrument, without regard to unrealized appreciation or depreciation previously recognized, and includes investments written-off during the period net

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

of recoveries and realized gains or losses from in-kind redemptions. Net unrealized appreciation or depreciation reflects the net change in the fair value of the Investment Portfolio and financial instruments and the reclassification of any prior period unrealized appreciation or depreciation on exited investments and financial instruments to realized gains or losses.

**11. Fair Value of Financial Instruments**

Fair value estimates are made at discrete points in time based on relevant information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Main Street believes that the carrying amounts of its financial instruments, consisting of cash and cash equivalents, receivables, payables and other liabilities approximate the fair values of such items due to the short-term nature of these instruments.

To estimate the fair value of Main Street's multiple tranches of unsecured debt instruments as disclosed in Note E – Debt, Main Street uses quoted market prices. For the estimated fair value of Main Street's SBIC debentures, Main Street uses the Yield-to-Maturity valuation method based on projections of the discounted future free cash flows that the debt security will likely generate, including both the discounted cash flows of the associated interest and principal amounts for the debt security.

**12. Earnings per Share**

Basic and diluted per share calculations are computed utilizing the weighted-average number of shares of common stock outstanding for the period. In accordance with ASC 260, *Earnings Per Share*, the unvested shares of restricted stock awarded pursuant to Main Street's equity compensation plans are participating securities and, therefore, are included in the basic earnings per share calculation. As a result, for all periods presented, there is no difference between diluted earnings per share and basic earnings per share amounts.

**13. Recently Issued or Adopted Accounting Standards**

In March 2020, the FASB issued ASU 2020-04, *Reference rate reform (Topic 848) — Facilitation of the effects of reference rate reform on financial reporting*. The amendments in this update provide optional expedients and exceptions for applying U.S. GAAP to certain contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform and became effective upon issuance for all entities. The Company has agreements that have LIBOR as a reference rate with certain portfolio companies and also with certain lenders. Many of these agreements include language for choosing an alternative successor rate if LIBOR reference is no longer considered to be appropriate. Contract modifications are required to be evaluated in determining whether the modifications result in the establishment of new contracts or the continuation of existing contracts. The Company adopted this amendment in March 2020 and plans to apply the amendments in this update to account for contract modifications due to changes in reference rates when LIBOR reference is no longer used. The Company utilized the optional expedients and exceptions provided by ASU 2020-04 during the year ended December 31, 2022, the effect of which was not material to the consolidated financial statements and the notes thereto. The Company does not expect ASU 2020-04 to have a material impact to the consolidated financial statements and the notes thereto.

In December 2021, the SEC published Staff Accounting Bulletin No. 120 ("SAB 120") to provide accounting and disclosure guidance for stock compensation awards made to executives and conforming amendments to the Staff Accounting Bulletin Series to align with the current authoritative accounting guidance in ASC 718, *Compensation — Stock Compensation*. In part, SAB 120 requires that an entity disclose how it determines the current price of underlying shares for grant-date fair value, the policy for when an adjustment to the share price is required, how it determines the amount of an adjustment to the share price and any significant assumptions used in determining an adjustment to the share price. SAB 120 is effective for all stock compensation awards issued after December 1, 2021. Main Street is in compliance with the guidance pursuant to SAB 120 for any share-based compensation disclosures. See *Note J — Share-Based Compensation* for further discussion of Main Street's policies and procedures regarding share-based compensation. The impact of SAB 120 was not material to the consolidated financial statements and the notes thereto.

In June 2022, the FASB issued ASU 2022-03, *Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions*. The amendments in this update provide that a contractual restriction on the sale of

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments in this update also require additional disclosures for equity securities subject to contractual sales restrictions. ASU 2022-03 is effective for years beginning after December 15, 2023, though early adoption is permitted. The Company has elected to early adopt ASU 2022-03 as of December 31, 2022 and it did not have a material impact on the consolidated financial statements and the notes thereto.

In November 2022, the FASB issued ASU 2022-06, *Reference rate reform (Topic 848) — Deferral of the Sunset Date of Topic 848*. The amendments in this update defer the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The Company utilized the optional expedients provided by ASU 2020-04 during the year ended December 31, 2022, the effect of which was not material to the consolidated financial statements and the notes thereto. The Company will continue to utilize the optional expedients provided by ASU 2020-04 and extended by ASU 2022-06 through the year end December 31, 2024. The Company does not expect ASU 2022-06 to have a material impact to the consolidated financial statements and the notes thereto.

From time to time, new accounting pronouncements are issued by the FASB or other standards-setting bodies that are adopted by Main Street as of the specified effective date. Main Street believes that the impact of recently issued standards and any that are not yet effective will not have a material impact on its consolidated financial statements upon adoption.

**NOTE C — FAIR VALUE HIERARCHY FOR INVESTMENTS — PORTFOLIO COMPOSITION**

ASC 820 defines fair value, establishes a framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to measure fair value, and enhances disclosure requirements for fair value measurements. Main Street accounts for its investments at fair value.

**Fair Value Hierarchy**

In accordance with ASC 820, Main Street has categorized its investments based on the priority of the inputs to the valuation technique into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical investments (Level 1) and the lowest priority to unobservable inputs (Level 3).

Investments recorded on Main Street's Consolidated Balance Sheets are categorized based on the inputs to the valuation techniques as follows:

Level 1—Investments whose values are based on unadjusted quoted prices for identical assets in an active market that Main Street has the ability to access (examples include investments in active exchange-traded equity securities and investments in most U.S. government and agency securities).

Level 2—Investments whose values are based on quoted prices in markets that are not active or model inputs that are observable either directly or indirectly for substantially the full term of the investment. Level 2 inputs include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quoted prices for similar assets in active markets (for example, investments in restricted stock);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Quoted prices for identical or similar assets in non-active markets (for example, investments in thinly traded public companies);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pricing models whose inputs are observable for substantially the full term of the investment (for example, market interest rate indices); 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;• Pricing models whose inputs are derived principally from, or corroborated by, observable market data through correlation or other means for substantially the full term of the investment.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Level 3—Investments whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement (for example, investments in illiquid securities issued by privately held companies). These inputs reflect management's own assumptions about the assumptions a market participant would use in pricing the investment.

As required by ASC 820, when the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement in its entirety. For example, a Level 3 fair value measurement may include inputs that are observable (Levels 1 and 2) and unobservable (Level 3). Therefore, unrealized appreciation and depreciation related to such investments categorized within the Level 3 tables below may include changes in fair value that are attributable to both observable inputs (Levels 1 and 2) and unobservable inputs (Level 3).

As of December 31, 2022 and 2021, all of Main Street's LMM portfolio investments consisted of illiquid securities issued by privately held companies and the fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street's LMM portfolio investments were categorized as Level 3 as of December 31, 2022 and 2021.

As of December 31, 2022 and 2021, Main Street's Private Loan portfolio investments primarily consisted of investments in interest-bearing secured debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street's Private Loan portfolio investments were categorized as Level 3 as of December 31, 2022 and 2021.

As of December 31, 2022 and 2021, Main Street's Middle Market portfolio investments consisted primarily of investments in secured and unsecured debt investments and independently rated debt investments. The fair value determination for these investments consisted of a combination of observable inputs in non-active markets for which sufficient observable inputs were not available to determine the fair value of these investments and unobservable inputs. As a result, all of Main Street's Middle Market portfolio investments were categorized as Level 3 as of December 31, 2022 and 2021.

As of December 31, 2022 and 2021, Main Street's Other Portfolio investments consisted of illiquid securities issued by privately held companies and the fair value determination for these investments primarily consisted of unobservable inputs. As a result, all of Main Street's Other Portfolio investments were categorized as Level 3 as of December 31, 2022 and 2021.

As of both December 31, 2022 and 2021, Main Street held one short-term portfolio investment, which was a secured debt investment. The fair value determination for this investment consisted of available observable inputs in non-active markets sufficient to determine the fair value of the investment. As a result, Main Street's short-term portfolio investment was categorized as Level 2 as of both December 31, 2022 and 2021.

The fair value determination of each portfolio investment categorized as Level 3 required one or more of the following unobservable inputs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Financial information obtained from each portfolio company, including unaudited statements of operations and balance sheets for the most recent period available as compared to budgeted numbers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current and projected financial condition of the portfolio company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current and projected ability of the portfolio company to service its debt obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Type and amount of collateral, if any, underlying the investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current financial ratios (e.g., fixed charge coverage ratio, interest coverage ratio and net debt/EBITDA ratio) applicable to the investment;

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current liquidity of the investment and related financial ratios (e.g., current ratio and quick ratio);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pending debt or capital restructuring of the portfolio company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Projected operating results of the portfolio company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current information regarding any offers to purchase the investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current ability of the portfolio company to raise any additional financing as needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in the economic environment which may have a material impact on the operating results of the portfolio company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Internal occurrences that may have an impact (both positive and negative) on the operating performance of the portfolio company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Qualitative assessment of key management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contractual rights, obligations or restrictions associated with the investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other factors deemed relevant.

The use of significant unobservable inputs creates uncertainty in the measurement of fair value as of the reporting date. The significant unobservable inputs used in the fair value measurement of Main Street's LMM equity securities, which are generally valued through an average of the discounted cash flow technique and the market comparable/enterprise value technique (unless one of these approaches is determined to not be appropriate), are (i) EBITDA multiples and (ii) the weighted-average cost of capital ("WACC"). Significant increases (decreases) in EBITDA multiple inputs in isolation would result in a significantly higher (lower) fair value measurement. On the contrary, significant increases (decreases) in WACC inputs in isolation would result in a significantly lower (higher) fair value measurement. The significant unobservable inputs used in the fair value measurement of Main Street's LMM, Private Loan and Middle Market securities are (i) risk adjusted discount rates used in the Yield-to-Maturity valuation technique (see *Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio*) and (ii) the percentage of expected principal recovery. Significant increases (decreases) in any of these discount rates in isolation would result in a significantly lower (higher) fair value measurement. Significant increases (decreases) in any of these expected principal recovery percentages in isolation would result in a significantly higher (lower) fair value measurement. However, due to the nature of certain investments, fair value measurements may be based on other criteria, such as third-party appraisals of collateral and fair values as determined by independent third parties, which are not presented in the tables below.

The following tables provide a summary of the significant unobservable inputs used to fair value Main Street's Level 3 portfolio investments as of December 31, 2022 and 2021:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Type of <br>Investment** | **Fair Value as of December 31, 2022 (in thousands)** | **Valuation Technique** | **Significant Unobservable Inputs** | **Range(3)** | **Weighted Average(3)** | **Median(3)** |
| Equity investments | $1172077 | Discounted cash flow | WACC | 9.4% - 22.5% | 14.5% | 15.4% |
|  |  | Market comparable / Enterprise value | EBITDA multiple (1) | 4.3x - 8.3x (2) | 6.7x | 6.0x |
| Debt investments | $2663958 | Discounted cash flow | Risk adjusted discount factor | 5.7% - 15.7% (2) | 10.0% | 10.3% |
|  |  |  | Expected principal recovery percentage | 0.0% - 100.0% | 99.4% | 100.0% |
| Debt investments | $264238 | Market approach | Third-party quote | 5.6 - 98.5 | 87.0 | 91.4 |
| Total Level 3 investments | $4100273 |  |  |  |  |  |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

______________________

(1)EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.

(2)Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 2.0x - 15.7x and the range for risk adjusted discount factor is 3.8% - 43.3%.

(3)Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Type of Investment** | **Fair Value as of December 31, 2021 (in thousands)** | **Valuation Technique** | **Significant Unobservable Inputs** | **Range(3)** | **Weighted Average(3)** | **Median(3)** |
| Equity investments | $1050269 | Discounted cash flow | WACC | 9.1% - 20.6% | 13.8% | 14.8% |
|  |  | Market comparable / Enterprise value | EBITDA multiple (1) | 4.8x - 7.7x (2) | 6.6x | 5.9x |
| Debt investments | $2158424 | Discounted cash flow | Risk adjusted discount factor | 5.6% - 15.7%(2) | 9.8% | 9.3% |
|  |  |  | Expected principal recovery percentage | 0.0% - 100.0% | 99.6% | 100.0% |
| Debt investments | $351144 | Market approach | Third-party quote | 3.0 - 100.5 | 94.4 | 99.0 |
| Total Level 3 investments | $3559837 |  |  |  |  |  |

---

______________________

(1)EBITDA may include proforma adjustments and/or other addbacks based on specific circumstances related to each investment.

(2)Range excludes outliers that are greater than one standard deviation from the mean. Including these outliers, the range for EBITDA multiple is 2.2x - 11.0x and the range for risk adjusted discount factor is 4.2% - 38.5%.

(3)Does not include investments for which the valuation technique does not include the use of the applicable fair value input.

The following tables provide a summary of changes in fair value of Main Street's Level 3 portfolio investments for the years ended December 31, 2022 and 2021 (amounts in thousands):

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Type of Investment** | **Fair Value as of December 31, 2021** | **Transfers Into Level 3 Hierarchy** | **Redemptions/ Repayments** | **New Investments** | **Net Changes from Unrealized to Realized** | **Net Unrealized Appreciation (Depreciation)** | **Other(1)** | **Fair Value as of December 31, 2022** |
| Debt | $2509568 | $— | $(590740) | $1085808 | $19674 | $(89178) | $(6936) | $2928196 |
| Equity | 1043709 |  | (55197) | 74274 | (12234) | 109154 | 6936 | 1166643 |
| Equity Warrant | 6560 |  | (655) | 1036 | (1834) | 327 |  | 5434 |
|  | $3559837 | $— | $(646592) | $1161118 | $5606 | $20303 | $— | $4100273 |

---

______________________

(1)Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information in the Consolidated Statements of Cash Flows.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Type of Investment** | **Fair Value as of December 31, 2020** | **Transfers Into Level 3 Hierarchy** | **Redemptions/ Repayments** | **New Investments** | **Net Changes from Unrealized to Realized** | **Net Unrealized Appreciation (Depreciation)** | **Other(1)** | **Fair Value as of December 31, 2021** |
| Debt | $1807134 | $— | $(909464) | $1608143 | $18397 | $(10844) | $(3798) | $2509568 |
| Equity | 866734 |  | (78824) | 106193 | (27260) | 170786 | 6080 | 1043709 |
| Equity Warrant | 10998 |  | (1071) |  | (2159) | 1074 | (2282) | 6560 |
|  | $2684866 | $— | $(989359) | $1714336 | $(11022) | $161016 | $— | $3559837 |

---

______________________

(1)Includes the impact of non-cash conversions. These transactions represent non-cash investing activities. See additional cash flow information in the Consolidated Statements of Cash Flows.

At December 31, 2022 and 2021, Main Street's investments at fair value were categorized as follows in the fair value hierarchy for ASC 820 purposes:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| | | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|<br>**At December 31, 2022** |<br>**Fair Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant Other<br>Observable Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| LMM portfolio investments | $2060459 | $— | $— | $2060459 |
| Private Loan portfolio investments | 1471466 |  |  | 1471466 |
| Middle Market portfolio investments | 329119 |  |  | 329119 |
| Other Portfolio investments | 116299 |  |  | 116299 |
| External Investment Manager | 122930 |  |  | 122930 |
| Short-term portfolio investments | 1904 |  | 1904 |  |
| Total investments | $4102177 | $— | $1904 | $4100273 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Fair Value Measurements** | **Fair Value Measurements** | **Fair Value Measurements** |
| | | **(in thousands)** | **(in thousands)** | **(in thousands)** |
|<br>**At December 31, 2021** |<br>**Fair Value** | **Quoted Prices in<br>Active Markets for<br>Identical Assets<br>(Level 1)** | **Significant Other<br>Observable Inputs<br>(Level 2)** | **Significant<br>Unobservable<br>Inputs<br>(Level 3)** |
| LMM portfolio investments | $1716415 | $— | $— | $1716415 |
| Private Loan portfolio investments | 1141772 |  |  | 1141772 |
| Middle Market portfolio investments | 395167 |  |  | 395167 |
| Other Portfolio investments | 166083 |  |  | 166083 |
| External Investment Manager | 140400 |  |  | 140400 |
| Short-term portfolio investments | 1994 |  | 1994 |  |
| Total investments | $3561831 | $— | $1994 | $3559837 |

---

**Investment Portfolio Composition**

Main Street's principal investment objective is to maximize its portfolio's total return by generating current income from its debt investments and current income and capital appreciation from its equity and equity-related investments, including warrants, convertible securities and other rights to acquire equity securities in a portfolio company. Main Street seeks to achieve its investment objective through its LMM, Private Loan and Middle Market investment strategies.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Main Street's LMM investment strategy involves investments in secured debt, equity warrants and direct equity investments in privately held, LMM companies based in the United States. Main Street's LMM portfolio companies generally have annual revenues between $10 million and $150 million, and its LMM investments generally range in size from $5 million to $75 million. The LMM debt investments are typically secured by a first priority lien on the assets of the portfolio company, can include either fixed or floating rate terms and generally have a term of between five and seven years from the original investment date. In most LMM portfolio investments, Main Street receives nominally priced equity warrants and/or makes direct equity investments in connection with a debt investment.

Main Street's private loan ("Private Loan") investment strategy involves investments in privately held companies that are generally consistent with the size of its LMM portfolio companies or Middle Market portfolio companies, and its Private Loan investments generally range in size from $10 million to $75 million. Main Street's Private Loan investments generally consist of loans that either (i) primarily have been originated directly by Main Street or (ii) to a lesser extent, through strategic relationships with other investment funds on a collaborative basis, and are often referred to in the debt markets as "club deals" because of the small lender group size. In both cases, our Private Loan investments are typically made to a company to support the acquisition of the company by a private equity sponsor. Main Street's Private Loan portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have a term of between three and seven years from the original investment date. Main Street may have the option to invest alongside the sponsor in the equity securities of its Private Loan portfolio companies.

Main Street's Middle Market investment strategy involves investments in syndicated loans to or debt securities in Middle Market companies, which Main Street defines as companies with annual revenues between $150 million and $1.5 billion, and its Middle Market investments generally range in size from $3 million to $25 million. Main Street's Middle Market portfolio debt investments are generally secured by a first priority lien on the assets of the portfolio company and typically have an expected duration of between three and seven years from the original investment date.

Main Street's other portfolio ("Other Portfolio") investments primarily consist of investments that are not consistent with the typical profiles for its LMM, Private Loan or Middle Market portfolio investments, including investments which may be managed by third parties. In the Other Portfolio, Main Street may incur indirect fees and expenses in connection with investments managed by third parties, such as investments in other investment companies or private funds. For Other Portfolio investments, Main Street generally receives distributions related to the assets held by the portfolio company. Those assets are typically expected to be liquidated over a five to ten-year period.

Based upon Main Street's liquidity and capital structure management activities, Main Street's Investment Portfolio may also include short-term portfolio investments that are atypical of Main Street's LMM, Private Loan and Middle Market portfolio investments in that they are intended to be a short-term deployment of capital. Those assets are typically expected to be liquidated in one year or less. These short-term portfolio investments are not expected to be a significant portion of the overall Investment Portfolio.

Main Street's external asset management business is conducted through its External Investment Manager. The External Investment Manager earns management fees based on the assets under management for external parties and may earn incentive fees, or a carried interest, based on the performance of the assets managed. Main Street entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for its relationship with MSC Income Fund, Inc. ("MSC Income"). Through this agreement, Main Street shares employees with the External Investment Manager, including their related infrastructure, business relationships, management expertise and capital raising capabilities. Main Street allocates the related expenses to the External Investment Manager pursuant to the sharing agreement. Main Street's total expenses for the years ended December 31, 2022, 2021 and 2020 are net of expenses allocated to the External Investment Manager of $13.0 million, $10.3 million and $7.4 million, respectively.

Investment income, consisting of interest, dividends and fees, can fluctuate dramatically due to various factors, including the level of new investment activity, repayments of debt investments or sales of equity interests. Investment income in any given year could also be highly concentrated among several portfolio companies. For the years ended December 31, 2022, 2021 and 2020, Main Street did not record investment income from any single portfolio company in excess of 10% of total investment income.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

The following tables provide a summary of Main Street's investments in the LMM, Private Loan and Middle Market portfolios as of December 31, 2022 and 2021 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager, which are discussed further below):

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2022** | **As of December 31, 2022** | **As of December 31, 2022** |
| | **LMM (a)** | **Private Loan** | **Middle Market** |
| | **(dollars in millions)** | **(dollars in millions)** | **(dollars in millions)** |
| Number of portfolio companies | 78 | 85 | 31 |
| Fair value | $2060.5 | $1471.5 | $329.1 |
| Cost | $1719.9 | $1500.3 | $401.7 |
| Debt investments as a % of portfolio (at cost) | 73.7% | 97.1% | 93.8% |
| Equity investments as a % of portfolio (at cost) | 26.3% | 2.9% | 6.2% |
| % of debt investments at cost secured by first priority lien | 99.1% | 99.6% | 98.8% |
| Weighted-average annual effective yield (b) | 12.3% | 11.6% | 11.0% |
| Average EBITDA (c) | $8.0 | $38.1 | $68.7 |

---

______________________

(a)At December 31, 2022, Main Street had equity ownership in all of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 41%.

(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2022, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on Main Street's debt portfolio as of December 31, 2022 including debt investments on non-accrual status was 11.6% for its LMM portfolio, 11.2% for its Private Loan portfolio and 10.3% for its Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect changes in the market value of Main Street's stock, Main Street's utilization of debt capital in its capital structure, Main Street's expenses or any sales load paid by an investor.

(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including three LMM portfolio companies and two Private Loan portfolio companies, as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

---

| | | | |
|:---|:---|:---|:---|
| | **As of December 31, 2021** | **As of December 31, 2021** | **As of December 31, 2021** |
| | **LMM (a)** | **Private Loan** | **Middle Market** |
| | **(dollars in millions)** | **(dollars in millions)** | **(dollars in millions)** |
| Number of portfolio companies | 73 | 75 | 36 |
| Fair value | $1716.4 | $1141.8 | $395.2 |
| Cost | $1455.7 | $1157.5 | $440.9 |
| Debt investments as a % of portfolio (at cost) | 70.9% | 95.7% | 93.3% |
| Equity investments as a % of portfolio (at cost) | 29.1% | 4.3% | 6.7% |
| % of debt investments at cost secured by first priority lien | 99.0% | 98.7% | 98.7% |
| Weighted-average annual effective yield (b) | 11.2% | 8.2% | 7.5% |
| Average EBITDA (c) | $6.2 | $41.3 | $76.0 |

---

______________________

(a)At December 31, 2021, Main Street had equity ownership in all of its LMM portfolio companies, and the average fully diluted equity ownership in those portfolio companies was 40%.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

(b)The weighted-average annual effective yields were computed using the effective interest rates for all debt investments at cost as of December 31, 2021, including amortization of deferred debt origination fees and accretion of original issue discount but excluding fees payable upon repayment of the debt instruments and any debt investments on non-accrual status. The weighted-average annual effective yield on Main Street's debt portfolio as of December 31, 2021 including debt investments on non-accrual status was 10.6% for its LMM portfolio, 8.0% for its Private Loan portfolio and 6.9% for its Middle Market portfolio. The weighted-average annual effective yield is not reflective of what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect changes in the market value of Main Street's stock, Main Street's utilization of debt capital in its capital structure, Main Street's expenses or any sales load paid by an investor.

(c)The average EBITDA is calculated using a simple average for the LMM portfolio and a weighted-average for the Private Loan and Middle Market portfolios. These calculations exclude certain portfolio companies, including three LMM portfolio companies, three Private Loan portfolio companies and one Middle Market portfolio company, as EBITDA is not a meaningful valuation metric for Main Street's investments in these portfolio companies, and those portfolio companies whose primary purpose is to own real estate.

For the years ended December 31, 2022 and 2021, Main Street achieved a total return on investments of 11.1% and 16.6%, respectively. Total return on investments is calculated using the interest, dividend, and fee income, as well as the realized and unrealized change in fair value of the Investment Portfolio for the specified period. Main Street's total return on investments is not reflective of what an investor in shares of Main Street's common stock will realize on its investment because it does not reflect changes in the market value of Main Street's stock, Main Street's utilization of debt capital in its capital structure, Main Street's expenses or any sales load paid by an investor.

As of December 31, 2022, Main Street had Other Portfolio investments in 14 companies, collectively totaling $116.3 million in fair value and $120.4 million in cost basis and which comprised 2.8% and 3.2% of Main Street's Investment Portfolio at fair value and cost, respectively. As of December 31, 2021, Main Street had Other Portfolio investments in 13 companies, collectively totaling $166.1 million in fair value and $173.7 million in cost basis and which comprised 4.7% and 5.3% of Main Street's Investment Portfolio at fair value and cost, respectively.

As discussed further in *Note A.1. — Organization and Basis of Presentation — Organization*, Main Street holds an investment in the External Investment Manager, a wholly-owned subsidiary that is treated as a portfolio investment. As of December 31, 2022, this investment had a fair value of $122.9 million and a cost basis of $29.5 million, which comprised 3.0% and 0.8% of Main Street's Investment Portfolio at fair value and cost, respectively. As of December 31, 2021, this investment had a fair value of $140.4 million and a cost basis of $29.5 million, which comprised 3.9% and 0.9% of Main Street's Investment Portfolio at fair value and cost, respectively.

The following tables summarize the composition of Main Street's total combined LMM, Private Loan and Middle Market portfolio investments at cost and fair value by type of investment as a percentage of the total combined LMM, Private Loan and Middle Market portfolio investments, as of December 31, 2022 and 2021 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager, which are discussed above).

---

| | | |
|:---|:---|:---|
| **Cost:** | **December 31, 2022** | **December 31, 2021** |
| First lien debt | 85.0% | 82.5% |
| Equity | 14.2 | 16.2 |
| Second lien debt | 0.3 | 0.6 |
| Equity warrants | 0.2 | 0.3 |
| Other | 0.3 | 0.4 |
|  | 100.0% | 100.0% |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | | |
|:---|:---|:---|
| **Fair Value:** | **December 31, 2022** | **December 31, 2021** |
| First lien debt | 75.2% | 74.3% |
| Equity | 24.1 | 24.6 |
| Second lien debt | 0.3 | 0.5 |
| Equity warrants | 0.1 | 0.2 |
| Other | 0.3 | 0.4 |
|  | 100.0% | 100.0% |

---

The following tables summarize the composition of Main Street's total combined LMM, Private Loan and Middle Market portfolio investments by geographic region of the United States and other countries at cost and fair value as a percentage of the total combined LMM, Private Loan and Middle Market portfolio investments, as of December 31, 2022 and 2021 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager). The geographic composition is determined by the location of the corporate headquarters of the portfolio company.

---

| | | |
|:---|:---|:---|
| **Cost:** | **December 31, 2022** | **December 31, 2021** |
| West | 28.5% | 28.3% |
| Southwest | 20.1 | 21.6 |
| Northeast | 19.0 | 22.6 |
| Midwest | 16.3 | 15.1 |
| Southeast | 14.0 | 11.6 |
| Canada | 0.6 | 0.8 |
| Other Non-United States | 1.5 |  |
|  | 100.0% | 100.0% |

---

---

| | | |
|:---|:---|:---|
| **Fair Value:** | **December 31, 2022** | **December 31, 2021** |
| West | 28.7% | 28.5% |
| Southwest | 21.4 | 23.0 |
| Northeast | 18.8 | 21.9 |
| Midwest | 16.6 | 15.8 |
| Southeast | 12.4 | 10.0 |
| Canada | 0.6 | 0.8 |
| Other Non-United States | 1.5 |  |
|  | 100.0% | 100.0% |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Main Street's LMM, Private Loan and Middle Market portfolio investments are in companies conducting business in a variety of industries. The following tables summarize the composition of Main Street's total combined LMM, Private Loan and Middle Market portfolio investments by industry at cost and fair value as of December 31, 2022 and 2021 (this information excludes Other Portfolio investments, short-term portfolio investments and the External Investment Manager).

---

| | | |
|:---|:---|:---|
| **Cost:** | **December 31, 2022** | **December 31, 2021** |
| Internet Software & Services | 8.0% | 7.2% |
| Machinery | 7.4 | 7.3 |
| Commercial Services & Supplies | 6.7 | 5.9 |
| Construction & Engineering | 5.8 | 7.8 |
| Distributors | 5.1 | 4.7 |
| Health Care Providers & Services | 4.7 | 3.9 |
| Diversified Consumer Services | 4.5 | 3.4 |
| Leisure Equipment & Products | 4.5 | 4.1 |
| Professional Services | 4.2 | 4.6 |
| Energy Equipment & Services | 3.7 | 4.0 |
| IT Services | 3.3 | 3.5 |
| Specialty Retail | 3.2 | 3.5 |
| Tobacco | 3.1 | 2.1 |
| Containers & Packaging | 2.6 | 2.3 |
| Media | 2.4 | 1.8 |
| Aerospace & Defense | 2.3 | 1.9 |
| Computers & Peripherals | 2.2 | 1.3 |
| Building Products | 1.9 | 2.3 |
| Textiles, Apparel & Luxury Goods | 1.9 | 2.2 |
| Diversified Telecommunication Services | 1.9 | 2.6 |
| Software | 1.9 | 1.8 |
| Communications Equipment | 1.8 | 2.3 |
| Auto Components | 1.7 | 0.9 |
| Food Products | 1.6 | 2.0 |
| Electronic Equipment, Instruments & Components | 1.6 | 1.4 |
| Diversified Financial Services | 1.5 | 2.1 |
| Internet & Catalog Retail | 1.3 | 1.6 |
| Health Care Equipment & Supplies | 1.3 | 0.3 |
| Food & Staples Retailing | 1.2 | 0.8 |
| Chemicals | 1.1 | 1.7 |
| Hotels, Restaurants & Leisure | 1.1 | 1.4 |
| Electrical Equipment | 1.0 | 0.7 |
| Household Durables | 0.8 | 1.0 |
| Life Sciences Tools & Services | 0.5 | 1.4 |
| Oil, Gas & Consumable Fuels | 0.4 | 1.8 |
| Other (1) | 1.8 | 2.4 |
|  | 100.0% | 100.0% |

---

______________________

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

(1)Includes various industries with each industry individually less than 1.0% of the total combined LMM, Private Loan and Middle Market portfolio investments at each date.

---

| | | |
|:---|:---|:---|
| **Fair Value:** | **December 31, 2022** | **December 31, 2021** |
| Machinery | 8.4% | 8.5% |
| Diversified Consumer Services | 6.8 | 5.9 |
| Internet Software & Services | 6.8 | 6.4 |
| Commercial Services & Supplies | 6.1 | 5.5 |
| Construction & Engineering | 5.7 | 7.7 |
| Distributors | 5.5 | 4.7 |
| Health Care Providers & Services | 4.3 | 3.6 |
| Leisure Equipment & Products | 4.0 | 4.0 |
| Professional Services | 3.8 | 3.9 |
| Specialty Retail | 3.5 | 4.1 |
| Tobacco | 3.4 | 2.2 |
| IT Services | 3.1 | 3.3 |
| Media | 3.0 | 2.2 |
| Computers & Peripherals | 3.0 | 2.2 |
| Containers & Packaging | 2.8 | 2.5 |
| Energy Equipment & Services | 2.7 | 2.8 |
| Aerospace & Defense | 2.2 | 1.7 |
| Software | 2.1 | 2.0 |
| Building Products | 1.9 | 2.2 |
| Textiles, Apparel & Luxury Goods | 1.8 | 2.1 |
| Diversified Telecommunication Services | 1.8 | 2.5 |
| Food Products | 1.8 | 1.9 |
| Diversified Financial Services | 1.7 | 2.3 |
| Auto Components | 1.6 | 0.8 |
| Internet & Catalog Retail | 1.3 | 1.5 |
| Food & Staples Retailing | 1.1 | 0.8 |
| Chemicals | 1.1 | 1.6 |
| Health Care Equipment & Supplies | 1.0 | 0.1 |
| Construction Materials | 1.0 | 1.1 |
| Electrical Equipment | 1.0 | 0.8 |
| Communications Equipment | 0.9 | 1.5 |
| Hotels, Restaurants & Leisure | 0.7 | 1.0 |
| Life Sciences Tools & Services | 0.4 | 1.3 |
| Oil, Gas & Consumable Fuels | 0.3 | 1.4 |
| Other (1) | 3.4 | 3.9 |
|  | 100.0% | 100.0% |

---

______________________

(1)Includes various industries with each industry individually less than 1.0% of the total combined LMM, Private Loan and Middle Market portfolio investments at each date.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

At December 31, 2022 and 2021, Main Street had no portfolio investment that was greater than 10% of the Investment Portfolio at fair value.

**Unconsolidated Significant Subsidiaries**

In accordance with Rules 3-09 and 4-08(g) of Regulation S-X, Main Street must determine which of its unconsolidated controlled portfolio companies, if any, are considered "significant subsidiaries." In evaluating its unconsolidated controlled portfolio companies in accordance with Regulation S-X, there are two tests that Main Street must utilize to determine if any of Main Street's Control Investments (as defined in *Note A — Organization and Basis of Presentation*, including those unconsolidated portfolio companies defined as Control Investments in which Main Street does not own greater than 50% of the voting securities nor have rights to maintain greater than 50% of the board representation) are considered significant subsidiaries: the investment test and the income test. The investment test is generally measured by dividing Main Street's investment in the Control Investment by the value of Main Street's total investments. The income test is generally measured by dividing the absolute value of the combined sum of total investment income, net realized gain (loss) and net unrealized appreciation (depreciation) from the relevant Control Investment for the period being tested by the absolute value of Main Street's change in net assets resulting from operations for the same period. Rules 3-09 and 4-08(g) of Regulation S-X require Main Street to include (1) separate audited financial statements of an unconsolidated majority-owned subsidiary (Control Investments in which Main Street owns greater than 50% of the voting securities) in an annual report and (2) summarized financial information of a Control Investment in a quarterly report, respectively, if certain thresholds of the investment or income tests are exceeded and the unconsolidated portfolio company qualifies as a significant subsidiary.

As of December 31, 2022, 2021 and 2020, Main Street had no single investment that qualified as a significant subsidiary under either the investment or income tests.

**NOTE D — EXTERNAL INVESTMENT MANAGER**

As discussed further in *Note A.1. — Organization and Basis of Presentation — Organization* and *Note C — Fair Value Hierarchy for Investments — Portfolio Composition — Investment Portfolio Composition*, the External Investment Manager provides investment management and other services to External Parties. The External Investment Manager is accounted for as a portfolio investment of MSCC since the External Investment Manager conducts all of its investment management activities for External Parties.

The External Investment Manager serves as the investment adviser and administrator to MSC Income pursuant to an Investment Advisory and Administrative Services Agreement entered into in October 2020 between the External Investment Manager and MSC Income (the "Advisory Agreement"). Under the Advisory Agreement, the External Investment Manager earns a 1.75% annual base management fee on MSC Income's average total assets, an incentive fee equal to 20% of pre-investment fee net investment income above a specified investment return hurdle rate and a 20% incentive fee on cumulative net realized capital gains in exchange for providing advisory services to MSC Income.

As described more fully in *Note L — Related Party Transactions*, the External Investment Manager also serves as the investment adviser and administrator to MS Private Loan Fund I, LP, a private investment fund with a strategy to co-invest with Main Street in Private Loan portfolio investments (the "Private Loan Fund"). The External Investment Manager entered into an Investment Management Agreement in December 2020 with the Private Loan Fund, pursuant to which the External Investment Manager provides investment advisory and management services to the Private Loan Fund in exchange for an asset-based fee and certain incentive fees. The External Investment Manager may also advise other clients, including funds and separately managed accounts, pursuant to advisory and services agreements with such clients in exchange for asset-based and incentive fees.

The External Investment Manager provides administrative services for certain External Party clients that, to the extent not waived, are reported as administrative services fees. The administrative services fees generally represent expense reimbursements for a portion of the compensation, overhead and related expenses for certain professionals directly attributable to performing administrative services for clients. These fees are recognized as other revenue in the period in which the related services are rendered.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Main Street determines the fair value of the External Investment Manager using the Waterfall valuation method under the market approach (see further discussion in *Note B.1. — Summary of Significant Accounting Policies — Valuation of the Investment Portfolio*). Any change in fair value of the investment in the External Investment Manager is recognized on Main Street's Consolidated Statements of Operations in "Net Unrealized Appreciation (Depreciation)—Control investments."

The External Investment Manager is an indirect wholly-owned subsidiary of MSCC owned through a Taxable Subsidiary and is a disregarded entity for tax purposes. The External Investment Manager has entered into a tax sharing agreement with its Taxable Subsidiary owner. Since the External Investment Manager is accounted for as a portfolio investment of Main Street and is not included as a consolidated subsidiary of Main Street in its consolidated financial statements, and as a result of the tax sharing agreement with its Taxable Subsidiary owner, for financial reporting purposes the External Investment Manager is treated as if it is taxed at corporate income tax rates based on its taxable income and, as a result of its activities, may generate income tax expense or benefit. Main Street owns the External Investment Manager through the Taxable Subsidiary to allow MSCC to continue to comply with the "source-of-income" requirements contained in the RIC tax provisions of the Code. The taxable income, or loss, of the External Investment Manager may differ from its book income, or loss, due to temporary book and tax timing differences and permanent differences. As a result of the above described financial reporting and tax treatment, the External Investment Manager provides for any income tax expense, or benefit, and any tax assets or liabilities in its separate financial statements.

Main Street shares employees with the External Investment Manager and allocates costs related to such shared employees to the External Investment Manager generally based on a combination of the direct time spent, new investment origination activity and assets under management, depending on the nature of the expense. The total contribution of the External Investment Manager to Main Street's net investment income consists of the combination of the expenses allocated to the External Investment Manager and the dividend income earned from the External Investment Manager. For the years ended December 31, 2022, 2021 and 2020, the total contribution to Main Street's net investment income was $22.3 million, $16.5 million and $9.9 million, respectively.

Summarized financial information from the separate financial statements of the External Investment Manager as of December 31, 2022 and 2021 and for the years ended December 31, 2022, 2021 and 2020 is as follows:

---

| | | |
|:---|:---|:---|
| | **As of**<br>**December 31, 2022** | **As of**<br>**December 31, 2021** |
| | **(dollars in thousands)** | **(dollars in thousands)** |
| Cash | $— | $— |
| Accounts receivable - advisory clients | 8130 | 5595 |
| Intangible Asset | 29500 | 29500 |
| &nbsp;&nbsp;Total assets | $37630 | $35095 |
| Accounts payable to MSCC and its subsidiaries | $4455 | $3288 |
| Dividend payable to MSCC and its subsidiaries | 3675 | 2307 |
| Equity | 29500 | 29500 |
| &nbsp;&nbsp;Total liabilities and equity | $37630 | $35095 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** | **Year Ended<br>December 31,** |
| | **2022** | **2021** | **2020** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Management fee income | $21776 | $17665 | $10665 |
| Incentive fees | 2516 | 622 |  |
| Administrative services fees | 605 |  |  |
| &nbsp;&nbsp;&nbsp;Total revenues | 24897 | 18287 | 10665 |
| Expenses allocated from MSCC or its subsidiaries: |  |  |  |
| &nbsp;&nbsp;Salaries, share-based compensation and other personnel costs | (10129) | (8417) | (4984) |
| &nbsp;&nbsp;Other G&A expenses | (2835) | (1860) | (2445) |
| &nbsp;&nbsp;&nbsp;Total allocated expenses | (12964) | (10277) | (7429) |
| Pre-tax income | 11933 | 8010 | 3236 |
| Tax expense | (2636) | (1795) | (745) |
| Net income | $9297 | $6215 | $2491 |

---

**NOTE E — DEBT**

Summary of debt as of December 31, 2022 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Outstanding<br>Balance** | **Unamortized Debt**<br>**Issuance**<br>**(Costs)/Premiums** <sup>(1)</sup> | **Recorded Value** | **Estimated Fair**<br>**Value** <sup>(2)</sup> |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| &nbsp;&nbsp;SBIC Debentures | $350000 | $(6086) | $343914 | $290204 |
| &nbsp;&nbsp;Corporate Facility | 407000 |  | 407000 | 407000 |
| &nbsp;&nbsp;SPV Facility | 200000 |  | 200000 | 200000 |
| &nbsp;&nbsp;May 2024 Notes | 450000 | 727 | 450727 | 444749 |
| &nbsp;&nbsp;July 2026 Notes | 500000 | (1864) | 498136 | 434250 |
| &nbsp;&nbsp;December 2025 Notes | 100000 | (675) | 99325 | 106607 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Debt | $2007000 | $(7898) | $1999102 | $1882810 |

---

___________________________

(1)The unamortized debt issuance costs for the Credit Facilities are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, December 2025 Notes and SBIC Debentures are reflected as contra-liabilities on the Consolidated Balance Sheets.

(2)Estimated fair value for outstanding debt if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street's debt in *Note B.11. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments*.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

Summary of debt as of December 31, 2021 is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Outstanding<br>Balance** | **Unamortized Debt**<br>**Issuance**<br>**(Costs)/Premiums** <sup>(1)</sup> | **Recorded Value** | **Estimated Fair**<br>**Value** <sup>(2)</sup> |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| &nbsp;&nbsp;SBIC Debentures | $350000 | $(7269) | $342731 | $328206 |
| &nbsp;&nbsp;Corporate Facility | 320000 |  | 320000 | 320000 |
| &nbsp;&nbsp;December 2022 Notes | 185000 | (556) | 184444 | 190043 |
| &nbsp;&nbsp;May 2024 Notes | 450000 | 1272 | 451272 | 480767 |
| &nbsp;&nbsp;July 2026 Notes | 500000 | (2391) | 497609 | 502285 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Debt | $1805000 | $(8944) | $1796056 | $1821301 |

---

___________________________

(1)The unamortized debt issuance costs for the Corporate Facility are reflected as Deferred financing costs on the Consolidated Balance Sheets, while the deferred debt issuance costs related to the July 2026 Notes, May 2024 Notes, December 2022 Notes and SBIC Debentures are reflected as contra-liabilities on the Consolidated Balance Sheets.

(2)Estimated fair value for outstanding debt if Main Street had adopted the fair value option under ASC 825. See discussion of the methods used to estimate the fair value of Main Street's debt in *Note B.11. — Summary of Significant Accounting Policies — Fair Value of Financial Instruments*.

Summarized interest expense for the years ended December 31, 2022, 2021 and 2020 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| &nbsp;&nbsp;SBIC Debentures | $11337 | $10857 | $11867 |
| &nbsp;&nbsp;Corporate Facility | 18820 | 5204 | 9232 |
| &nbsp;&nbsp;SPV Facility | 1375 |  |  |
| &nbsp;&nbsp;May 2024 Notes | 22855 | 22855 | 19556 |
| &nbsp;&nbsp;July 2026 Notes | 15526 | 10988 |  |
| &nbsp;&nbsp;December 2022 Notes | 8188 | 8932 | 8932 |
| &nbsp;&nbsp;December 2025 Notes | 174 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Interest Expense | $78276 | $58836 | $49587 |

---

**SBIC Debentures**

Under existing SBIC regulations, SBA-approved SBICs under common control have the ability to issue debentures guaranteed by the SBA up to a regulatory maximum amount of $350.0 million. Main Street's SBIC debentures payable, under existing SBA-approved commitments, were $350.0 million at both December 31, 2022 and 2021. SBIC debentures provide for interest to be paid semiannually, with principal due at the applicable 10-year maturity date of each debenture. Main Street expects to maintain SBIC debentures under the SBIC program in the future, subject to periodic repayments and borrowings, in an amount up to the regulatory maximum amount for affiliated SBIC funds. The weighted-average annual interest rate on the SBIC debentures was 2.9% as of both years ended December 31, 2022 and 2021. The first principal maturity due under the existing SBIC debentures is in March 2023, and the weighted-average remaining duration as of December 31, 2022 was 5.1 years. In accordance with SBIC regulations, the Funds are precluded from incurring additional non-SBIC debt without the prior approval of the SBA.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

As of December 31, 2022, the SBIC debentures consisted of (i) $175.0 million par value of SBIC debentures outstanding issued by MSMF, with a recorded value of $172.0 million that was net of unamortized debt issuance costs of $3.0 million and (ii) $175.0 million par value of SBIC debentures issued by MSC III with a recorded value of $171.9 million that was net of unamortized debt issuance costs of $3.1 million.

The maturity dates and fixed interest rates for Main Street's SBIC Debentures as of December 31, 2022 and 2021 are summarized in the following table:

---

| | | | |
|:---|:---|:---|:---|
| **Maturity Date** | **Fixed Interest Rate** | **December 31,<br>2022** | **December 31,<br>2021** |
| 3/1/2023 | 3.16% | $16000000 | $16000000 |
| 3/1/2024 | 3.95% | 39000000 | 39000000 |
| 3/1/2024 | 3.55% | 24800000 | 24800000 |
| 3/1/2027 | 3.52% | 40400000 | 40400000 |
| 9/1/2027 | 3.19% | 34600000 | 34600000 |
| 3/1/2028 | 3.41% | 43000000 | 43000000 |
| 9/1/2028 | 3.55% | 32000000 | 32000000 |
| 3/1/2030 | 2.35% | 15000000 | 15000000 |
| 9/1/2030 | 1.13% | 10000000 | 10000000 |
| 9/1/2030 | 1.31% | 10000000 | 10000000 |
| 3/1/2031 | 1.94% | 25200000 | 25200000 |
| 9/1/2031 | 1.58% | 60000000 | 60000000 |
| Ending Balance |  | $350000000 | $350000000 |

---

**Corporate Facility**

Main Street maintains the Corporate Facility to provide additional liquidity to support its investment and operational activities. As of December 31, 2022, the Corporate Facility included total commitments of $920.0 million from a diversified group of 18 lenders and contained an accordion feature with the right to request an increase in commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments up to a total of $1.4 billion. The revolving period under the Corporate Facility expires in August 2026 and the Corporate Facility is scheduled to mature in August 2027.

As of December 31, 2022, borrowings under the Corporate Facility bore interest, subject to Main Street's election and resetting on a monthly basis on the first of each month, on a per annum basis at a rate equal to the applicable SOFR rate plus an applicable credit spread adjustment of 0.10% plus (i) 1.875% (or the applicable Prime rate plus 0.875%) as long as Main Street meets certain agreed upon excess collateral and maximum leverage requirements or (ii) 2.0% (or the applicable Prime Rate plus 1.0%) otherwise. Main Street pays unused commitment fees of 0.25% per annum on the unused lender commitments under the Corporate Facility. The Corporate Facility is secured by a first lien on the assets of MSCC and its subsidiaries, excluding the equity ownership or assets of the Funds and the External Investment Manager. In connection with the Corporate Facility, MSCC has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

As of December 31, 2022, the interest rate on the Corporate Facility was 6.1%. The average interest rate for borrowings under the Corporate Facility was 3.6% and 2.0% for the years ended December 31, 2022 and 2021, respectively. As of December 31, 2022, Main Street was in compliance with all financial covenants of the Corporate Facility.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

**SPV Facility**

In November 2022 and December 2022, MSCC Funding I, LLC ("MSCC Funding"), a wholly-owned Structured Subsidiary that primarily holds originated loan investments, entered into (i) the SPV Facility with MSCC as collateral manager and (ii) a lender joinder agreement (the "Joinder Agreement") to the SPV Facility that increased the total number of lenders from three to four lenders and increased the total commitments under the SPV Facility from $240.0 million to $255.0 million. As of December 31, 2022, the SPV Facility included total commitments of $255.0 million and an accordion feature, subject to the satisfaction of various conditions, that could bring total commitments and borrowing availability to up to $450.0 million. The revolving period under the SPV Facility expires in November 2025 and the SPV Facility is scheduled to mature in November 2027. Advances under the SPV Facility bear interest at a per annum rate equal to the one-month SOFR in effect, plus a 0.10% credit spread adjustment plus an applicable margin of 2.50% during the revolving period and 2.625% and 2.75% during the first and second years thereafter, respectively. MSCC Funding pays a commitment fee of 0.50% per annum on the unused lender commitments up to 35% the total lender commitments and 0.75% per annum on the unused lender commitments greater than 35% of the total lender commitments. The SPV Facility is secured by a collateral loan on the assets of MSCC Funding and its subsidiaries. In connection with the SPV Facility, MSCC Funding has made customary representations and warranties and is required to comply with various covenants, reporting requirements and other customary requirements for similar credit facilities.

As of December 31, 2022, the interest rate on the SPV Facility was 6.7%. The average interest rate for borrowings under the SPV Facility was 6.7% for the year ended December 31, 2022. As of December 31, 2022, MSCC Funding was in compliance with all financial covenants of the SPV Facility.

A balance sheet and statement of operations of MSCC Funding as of December 31, 2022 and for the period from November 22, 2022 (date of inception of MSCC Funding and the SPV Facility) through December 31, 2022 are as follows:

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

**Balance Sheet**

**(dollars in thousands)**

---

| | |
|:---|:---|
| | **December 31, 2022** |
| **ASSETS** | |
| &nbsp;&nbsp;Investments at fair value: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-Control Investments (cost: $314,752 as of December 31, 2022) | $316507 |
| &nbsp;&nbsp;Cash and cash equivalents | 10838 |
| &nbsp;&nbsp;Interest and dividend receivable and other assets | 2828 |
| &nbsp;&nbsp;Accounts receivable from MSCC and its subsidiaries | 556 |
| &nbsp;&nbsp;Receivable for securities sold | 369 |
| &nbsp;&nbsp;Deferred financing costs (net of accumulated amortization of $141 as of December 31, 2022) | 2630 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $333728 |
| **LIABILITIES** |  |
| &nbsp;&nbsp;SPV Facility | $200000 |
| &nbsp;&nbsp;Accounts payable and other liabilities | 112 |
| &nbsp;&nbsp;Interest payable | 1272 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 201384 |
| Commitments and contingencies (Note K) |  |
| **NET ASSETS** |  |
| &nbsp;&nbsp;Contributed capital | 126010 |
| &nbsp;&nbsp;Total undistributed earnings | 6334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net assets | 132344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and net assets | $333728 |

---

**Statement of Operations**

**(dollars in thousands)**

---

| | |
|:---|:---|
| | **Period from November 22, 2022 to December 31, 2022** |
| | **Period from November 22, 2022 to December 31, 2022** |
| **INVESTMENT INCOME:** | |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest, fee and dividend income: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Control/Non-Affiliate investments | $3454 |
| **EXPENSES:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest | (1414) |
| &nbsp;&nbsp;&nbsp;&nbsp;Management fee | (89) |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | (25) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total expenses | (1528) |
| **NET INVESTMENT INCOME (LOSS)** | 1926 |
| **NET UNREALIZED APPRECIATION (DEPRECIATION):** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Control/Non-Affiliate investments | 4408 |
| **NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS** | $6334 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

**December 2022 Notes**

In November 2017, Main Street issued $185.0 million in aggregate principal amount of 4.50% unsecured notes due December 1, 2022 (the "December 2022 Notes") at an issue price of 99.16%. The December 2022 Notes bore interest at a rate of 4.50% per year payable semiannually on June 1 and December 1 of each year. In December 2022, Main Street repaid the entire principal amount of the issued and outstanding December 2022 Notes at par value plus the accrued and unpaid interest.

**May 2024 Notes**

In April 2019, Main Street issued $250.0 million in aggregate principal amount of 5.20% unsecured notes due May 1, 2024 (the "May 2024 Notes") at an issue price of 99.125%. Subsequently, in December 2019, Main Street issued an additional $75.0 million aggregate principal amount of the May 2024 Notes at an issue price of 105.0% and, in July 2020, Main Street issued an additional $125.0 million aggregate principal amount at an issue price of 102.7%. The May 2024 Notes issued in December 2019 and July 2020 have identical terms as, and are a part of a single series with, the May 2024 Notes issued in April 2019. The May 2024 Notes are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness. The May 2024 Notes may be redeemed in whole or in part at any time at Main Street's option subject to certain make-whole provisions. The May 2024 Notes bear interest at a rate of 5.20% per year payable semiannually on May 1 and November 1 of each year.

As of December 31, 2022, Main Street was in compliance with all covenants and other requirements of the May 2024 Notes.

**July 2026 Notes**

In January 2021, Main Street issued $300.0 million in aggregate principal amount of 3.00% unsecured notes due July 14, 2026 (the "July 2026 Notes") at an issue price of 99.004%. Subsequently, in October 2021, Main Street issued an additional $200.0 million aggregate principal amount of the July 2026 Notes at an issue price of 101.741%. The July 2026 Notes issued in October 2021 have identical terms as, and are a part of a single series with, the July 2026 Notes issued in January 2021. The July 2026 Notes are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness. The July 2026 Notes may be redeemed in whole or in part at any time at Main Street's option subject to certain make-whole provisions. The July 2026 Notes bear interest at a rate of 3.00% per year payable semiannually on January 14 and July 14 of each year.

As of December 31, 2022, Main Street was in compliance with all covenants and other requirements of the July 2026 Notes.

**December 2025 Notes**

In December 2022, Main Street issued $100.0 million in aggregate principal amount of 7.84% Series A unsecured notes due December 23, 2025 (the "December 2025 Notes") at par. The December 2025 Notes are unsecured obligations and rank pari passu with Main Street's current and future unsecured indebtedness. The December 2025 Notes may be redeemed in whole or in part at any time at Main Street's option at par plus accrued interest to the prepayment date, subject to certain make-whole provisions. The December 2025 Notes bear interest at a rate of 7.84% per year payable semiannually on June 23 and December 23 of each year. In addition, the Company is obligated to offer to repay the December 2025 Notes at par plus accrued and unpaid interest if certain change in control events occur. The December 2025 Notes will bear interest at an increased rate from the date that (i) the December 2025 Notes receive a below investment grade rating by a rating agency if there is one or two rating agencies providing ratings of the December 2025 Notes, or two-thirds of the rating agencies if there are three rating agencies who are rating the notes (a "Below Investment Grade Event"), or (ii) the ratio of the Company's consolidated secured indebtedness (other than indebtedness of the Funds or any Structured Subsidiaries) to the value of its consolidated total assets is greater than 0.35 to 1.00 (a "Secured Debt Ratio Event"), to and until the date on which the Below Investment Grade Event and the Secured Debt Ratio Event are no longer continuing. The governing agreement for the December 2025 Notes contains customary terms and conditions for senior unsecured notes issued in a private placement, as well as customary events of default with customary cure and notice periods.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

As of December 31, 2022, the Company was in compliance with all covenants and other requirements of the December 2025 Notes.

**Contractual Payment Obligations**

A summary of Main Street's contractual payment obligations for the repayment of outstanding indebtedness at December 31, 2022 is as follows:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **2023** | **2024** | **2025** | **2026** | **2027** | **Thereafter** | **Total** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| SBIC debentures | $16000 | $63800 | $— | $— | $75000 | $195200 | $350000 |
| Corporate Facility |  |  |  |  | 407000 |  | 407000 |
| SPV Facility |  |  |  |  | 200000 |  | 200000 |
| May 2024 Notes |  | 450000 |  |  |  |  | 450000 |
| July 2026 Notes |  |  |  | 500000 |  |  | 500000 |
| December 2025 Notes |  |  | 100000 |  |  |  | 100000 |
| Total | $16000 | $513800 | $100000 | $500000 | $682000 | $195200 | $2007000 |

---

**Senior Securities**

Information about Main Street's senior securities is shown in the following table as of December 31 for the years indicated in the table, unless otherwise noted.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Total Amount Outstanding Exclusive of Treasury Securities(1)** | **Asset Coverage per Unit(2)** | **Involuntary Liquidating Preference per Unit(3)** | **Average Market Value per Unit(4)** |
| | **(dollars in thousands)** | | | |
| **SBIC Debentures** | | | | |
| 2013 | $200200 | 2476 |  | N/A |
| 2014 | 225000 | 2323 |  | N/A |
| 2015 | 225000 | 2368 |  | N/A |
| 2016 | 240000 | 2415 |  | N/A |
| 2017 | 295800 | 2687 |  | N/A |
| 2018 | 345800 | 2455 |  | N/A |
| 2019 | 311800 | 2363 |  | N/A |
| 2020 | 309800 | 2244 |  | N/A |
| 2021 | 350000 | 1985 |  | N/A |
| 2022 | 350000 | 2044 |  | N/A |
| **Corporate Facility** |  |  |  |  |
| 2013 | $237000 | 2476 |  | N/A |
| 2014 | 218000 | 2323 |  | N/A |
| 2015 | 291000 | 2368 |  | N/A |
| 2016 | 343000 | 2415 |  | N/A |
| 2017 | 64000 | 2687 |  | N/A |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Total Amount Outstanding Exclusive of Treasury Securities(1)** | **Asset Coverage per Unit(2)** | **Involuntary Liquidating Preference per Unit(3)** | **Average Market Value per Unit(4)** |
| | **(dollars in thousands)** | | | |
| 2018 | 301000 | 2455 |  | N/A |
| 2019 | 300000 | 2363 |  | N/A |
| 2020 | 269000 | 2244 |  | N/A |
| 2021 | 320000 | 1985 |  | N/A |
| 2022 | 407000 | 2044 |  | N/A |
| **SPV Facility** |  |  |  |  |
| 2022 | $200000 | 2044 |  | N/A |
| **April 2023 Notes** |  |  |  |  |
| 2013 | $90882 | 2476 |  | $24.35 |
| 2014 | 90823 | 2323 |  | 24.78 |
| 2015 | 90738 | 2368 |  | 25.40 |
| 2016 | 90655 | 2415 |  | 25.76 |
| 2017 | 90655 | 2687 |  | 25.93 |
| **December 2019 Notes** |  |  |  |  |
| 2014 | $175000 | 2323 |  | N/A |
| 2015 | 175000 | 2368 |  | N/A |
| 2016 | 175000 | 2415 |  | N/A |
| 2017 | 175000 | 2687 |  | N/A |
| 2018 | 175000 | 2455 |  | N/A |
| **December 2022 Notes** |  |  |  |  |
| 2017 | $185000 | 2687 |  | N/A |
| 2018 | 185000 | 2455 |  | N/A |
| 2019 | 185000 | 2363 |  | N/A |
| 2020 | 185000 | 2244 |  | N/A |
| 2021 | 185000 | 1985 |  | N/A |
| **May 2024 Notes** |  |  |  |  |
| 2019 | $325000 | 2363 |  | N/A |
| 2020 | 450000 | 2244 |  | N/A |
| 2021 | 450000 | 1985 |  | N/A |
| 2022 | 450000 | 2044 |  | N/A |
| **July 2026 Notes** |  |  |  |  |
| 2021 | $500000 | 1985 |  | N/A |
| 2022 | 500000 | 2044 |  | N/A |
| **December 2025 Notes** |  |  |  |  |
| 2022 | $100000 | 2044 |  | N/A |

---

___________________________

(1)Total amount of each class of senior securities outstanding at the end of the period presented.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

(2)Asset coverage per unit is the ratio of the carrying value of Main Street's total consolidated assets, less all liabilities and indebtedness not represented by senior securities, to the aggregate amount of senior securities representing indebtedness. Asset coverage per unit is expressed in terms of dollar amounts per $1,000 of indebtedness.

(3)The amount to which such class of senior security would be entitled upon the involuntary liquidation of the issuer in preference to any security junior to it. The "—" indicates information that the SEC expressly does not require to be disclosed for certain types of senior securities.

(4)Average market value per unit for the April 2023 Notes represents the average of the daily closing prices as reported on the NYSE during the period presented. Average market value per unit for all other senior securities included in the table is not applicable because these are not registered for public trading.

**NOTE F — FINANCIAL HIGHLIGHTS**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Per Share Data:** | **2022** | **2021** | **2020** | **2019** | **2018** |
| NAV at the beginning of the period | $25.29 | $22.35 | $23.91 | $24.09 | $23.53 |
| Net investment income (1) | 3.29 | 2.65 | 2.10 | 2.50 | 2.60 |
| Net realized gain (loss) (1)(2) | (0.07) | 0.66 | (1.77) | (0.33) | (0.03) |
| Net unrealized appreciation (depreciation) (1)(2) | 0.33 | 1.97 | (0.09) | (0.09) | 0.32 |
| Income tax benefit (provision) (1)(2) | (0.31) | (0.48) | 0.21 | (0.02) | (0.09) |
| Net increase in net assets resulting from operations (1) | 3.24 | 4.80 | 0.45 | 2.06 | 2.80 |
| Dividends paid from net investment income | (2.95) | (2.58) | (2.46) | (2.91) | (2.69) |
| Distributions from capital gains |  |  |  |  | (0.16) |
| Dividends paid | (2.95) | (2.58) | (2.46) | (2.91) | (2.85) |
| Impact of the net change in monthly dividends declared prior to the end of the period and paid in the subsequent period | (0.01) | (0.01) |  | (0.01) | (0.01) |
| Accretive effect of stock offerings (issuing shares above NAV per share) | 1.17 | 0.58 | 0.41 | 0.55 | 0.47 |
| Accretive effect of DRIP issuance (issuing shares above NAV per share) | 0.09 | 0.09 | 0.08 | 0.12 | 0.09 |
| Other (3) | 0.03 | 0.06 | (0.04) | 0.01 | 0.06 |
| NAV at the end of the period | $26.86 | $25.29 | $22.35 | $23.91 | $24.09 |
| Market value at the end of the period | $36.95 | $44.86 | $32.26 | $43.11 | $33.81 |
| Shares outstanding at the end of the period | 78506816 | 70737021 | 67762032 | 64252937 | 61264861 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
|<br>**Per Share Data:** | **2017** | **2016** | **2015** | **2014** | **2013** |
| NAV at the beginning of the period | $22.10 | $21.24 | $20.85 | $19.89 | $18.59 |
| Net investment income (1) | 2.39 | 2.23 | 2.18 | 2.20 | 2.06 |
| Net realized gain (loss) (1)(2) | 0.19 | 0.56 | (0.43) | 0.53 | 0.07 |
| Net unrealized appreciation (depreciation) (1)(2) | 0.86 | (0.14) | 0.20 | (0.27) | 0.52 |
| Income tax benefit (provision) (1)(2) | (0.43) | 0.02 | 0.18 | (0.15) |  |
| Net increase in net assets resulting from operations (1) | 3.01 | 2.67 | 2.13 | 2.31 | 2.65 |
| Dividends paid from net investment income | (2.47) | (1.99) | (2.49) | (2.17) | (2.29) |
| Distributions from capital gains | (0.32) | (0.74) | (0.16) | (0.38) | (0.37) |
| Dividends paid | (2.79) | (2.73) | (2.65) | (2.55) | (2.66) |
| Impact of the net change in monthly dividends declared prior to the end of the period and paid in the subsequent period | (0.01) | (0.01) | (0.01) | (0.01) | (0.02) |
| Accretive effect of stock offerings (issuing shares above NAV per share) | 1.07 | 0.76 | 0.74 | 1.07 | 1.13 |
| Accretive effect of DRIP issuance (issuing shares above NAV per share) | 0.06 | 0.08 | 0.12 | 0.12 | 0.13 |
| Other (3) | 0.09 | 0.09 | 0.06 | 0.02 | 0.07 |
| NAV at the end of the period | $23.53 | $22.10 | $21.24 | $20.85 | $19.89 |
| Market value at the end of the period | $39.73 | $36.77 | $29.08 | $29.24 | $32.69 |
| Shares outstanding at the end of the period | 58660680 | 54354857 | 50413744 | 45079150 | 39852604 |

---

___________________________

(1)Based on weighted-average number of common shares outstanding for the period.

(2)Net realized gains or losses, net unrealized appreciation or depreciation, and income tax provision or benefit can fluctuate significantly from period to period.

(3)Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted-average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** | **2019** | **2018** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| NAV at end of period | $2108586 | $1788846 | $1514767 | $1536390 | $1476049 |
| Average NAV | $1923134 | $1626585 | $1436291 | $1517615 | $1441163 |
| Average outstanding debt | $1882462 | $1417831 | $1152108 | $1055800 | $947694 |
| Ratio of total expenses, including income tax expense, to average NAV (1)(2) | 8.05% | 8.56% | 4.95% | 5.75% | 5.75% |
| Ratio of operating expenses to average NAV (2) | 6.84% | 6.54% | 5.89% | 5.67% | 5.32% |
| Ratio of operating expenses, excluding interest expense, to average NAV (2) | 2.77% | 2.92% | 2.44% | 2.36% | 2.30% |
| Ratio of net investment income to average NAV | 12.76% | 11.23% | 9.60% | 10.37% | 10.87% |
| Portfolio turnover ratio | 16.79% | 29.81% | 18.00% | 18.86% | 29.13% |
| Total investment return (3) | (11.18)% | 48.24% | (19.11)% | 36.86% | (8.25)% |
| Total return based on change in NAV (4) | 13.51% | 21.84% | 1.91% | 8.78% | 12.19% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2017** | **2016** | **2015** | **2014** | **2013** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| NAV at end of period | $1380368 | $1201481 | $1070894 | $939982 | $792533 |
| Average NAV | $1287639 | $1118567 | $1053313 | $885568 | $706056 |
| Average outstanding debt | $843993 | $801048 | $759396 | $575524 | $444331 |
| Ratio of total expenses, including income tax expense, to average NAV (1)(2) | 7.37% | 5.48% | 4.63% | 5.82% | 5.82% |
| Ratio of operating expenses to average NAV (2) | 5.47% | 5.59% | 5.45% | 5.11% | 5.82% |
| Ratio of operating expenses, excluding interest expense, to average NAV (2) | 2.63% | 2.58% | 2.41% | 2.44% | 2.95% |
| Ratio of net investment income to average NAV | 10.51% | 10.35% | 10.15% | 10.79% | 10.68% |
| Portfolio turnover ratio | 38.18% | 24.63% | 25.37% | 35.71% | 36.10% |
| Total investment return (3) | 16.02% | 37.36% | 8.49% | (3.09)% | 16.68% |
| Total return based on change in NAV (4) | 14.20% | 12.97% | 11.11% | 12.71% | 15.06% |

---

___________________________

(1)Total expenses are the sum of operating expenses and net income tax provision/benefit. Net income tax provision/benefit includes the accrual of net deferred tax provision/benefit relating to the net unrealized appreciation/depreciation on portfolio investments held in Taxable Subsidiaries and due to the change in the loss carryforwards, which are non-cash in nature and may vary significantly from period to period. Main Street is required to include net deferred tax provision/benefit in calculating its total expenses even though these net deferred taxes are not currently payable/receivable.

(2)Unless otherwise noted, operating expenses include interest, compensation, general and administrative and share-based compensation expenses, net of expenses allocated to the External Investment Manager of $13.0 million, $10.3 million, $7.4 million, $6.7 million, $6.8 million, $6.4 million, $5.1 million, $4.3 million and $2.0 million for the years ended December 31, 2022, 2021, 2020, 2019, 2018, 2017, 2016, 2015 and 2014, respectively. There were no expenses allocated to the External Investment Manager for the year ended December 31, 2013.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

(3)Total investment return is based on the purchase of stock at the current market price on the first day and a sale at the current market price on the last day of each period reported on the table and assumes reinvestment of dividends at prices obtained by Main Street's dividend reinvestment plan during the period. The return does not reflect any sales load that may be paid by an investor.

(4)Total return based on change in NAV was calculated using the sum of ending NAV plus dividends to stockholders and other non-operating changes during the period, divided by the beginning NAV. Non-operating changes include any items that affect NAV other than the net increase in net assets resulting from operations, such as the effects of stock offerings, shares issued under the DRIP and equity incentive plans and other miscellaneous items.

 **NOTE G — DIVIDENDS, DISTRIBUTIONS AND TAXABLE INCOME**

Main Street currently pays regular monthly dividends to its stockholders and periodically pays supplemental dividends to its stockholders. Future dividends, if any, will be determined by its Board of Directors on a quarterly basis. During 2022, Main Street paid regular monthly dividends of $0.215 per share for each month of January through September 2022 and regular monthly dividends of $0.22 per share for each month of October through December 2022. The 2022 regular monthly dividends, which total $192.3 million, or $2.595 per share, represent a 4.8% increase from the regular monthly dividends paid totaling $170.2 million, or $2.475 per share, for the year ended December 31, 2021.

During 2022, Main Street also paid supplemental dividends in March 2022, June 2022, September 2022 and December 2022 of $5.4 million, or $0.075 per share, $5.5 million, or $0.075 per share, $7.6 million, or $0.10 per share, and $7.8 million, or $0.10 per share, respectively, totaling $26.4 million, or $0.35 per share. During 2021, Main Street paid a supplemental dividend in December 2021 of $7.1 million, or $0.10 per share.

During the year ended December 31, 2022, the regular monthly dividends and supplemental dividends paid totaled $218.7 million, or $2.945 per share, representing a 23.4% increase from the year-ended December 31, 2021. During the year ended December 31, 2021, the regular monthly dividends and supplemental dividends paid totaled $177.3 million, or $2.575 per share.

For tax purposes, the 2022 dividends were comprised of (i) ordinary income totaling $2.629 per share and (ii) qualified dividend income totaling $0.317 per share. As of December 31, 2022, Main Street estimates that it has generated undistributed taxable income of $66.9 million, or $0.87 per share, that will be carried forward toward distributions to be paid in 2023.

MSCC has elected to be treated for U.S. federal income tax purposes as a RIC. MSCC's taxable income includes the taxable income generated by MSCC and certain of its subsidiaries, including the Funds and Structured Subsidiaries, which are treated as disregarded entities for tax purposes. As a RIC, MSCC generally will not pay corporate-level U.S. federal income taxes on any net ordinary taxable income or capital gains that MSCC distributes to its stockholders. MSCC must generally distribute at least 90% of its "investment company taxable income" (which is generally its net ordinary taxable income and realized net short-term capital gains in excess of realized net long-term capital losses) and 90% of its tax-exempt income to maintain its RIC status (pass-through tax treatment for amounts distributed). As part of maintaining RIC status, undistributed taxable income (subject to a 4% non-deductible U.S. federal excise tax) pertaining to a given fiscal year may be distributed up to twelve months subsequent to the end of that fiscal year, provided such dividends are declared on or prior to the later of (i) filing of the U.S. federal income tax return for the applicable fiscal year or (ii) the fifteenth day of the ninth month following the close of the year in which such taxable income was generated.

The determination of the tax attributes for Main Street's distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Therefore, a determination made on an interim basis may not be representative of the actual tax attributes of distributions for a full year. Ordinary dividend distributions from a RIC do not qualify for the 20% maximum tax rate (plus a 3.8% Medicare surtax, if applicable) on dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and qualified dividends, but may also include either one or both of capital

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

gains and return of capital. The tax character of distributions paid for the years ended December 31, 2022, 2021 and 2020 was as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| Ordinary income (1) | $195238 | $129625 | $135128 |
| Qualified dividends | 22991 | 47202 | 12398 |
| Distributions on tax basis | $218229 | $176827 | $147526 |

---

___________________________

(1)The years ended December 31, 2022, 2021 and 2020 include $2.3 million, $1.8 million and $1.5 million, respectively, that was reported for tax purposes as compensation for services in accordance with Section 83 of the Code.

Listed below is a reconciliation of "Net increase in net assets resulting from operations" to taxable income and to total distributions declared to common stockholders for the years ended December 31, 2022, 2021 and 2020.

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(estimated, dollars in thousands)** | **(estimated, dollars in thousands)** | **(estimated, dollars in thousands)** |
| Net increase in net assets resulting from operations | $241606 | $330762 | $29383 |
| Book-tax difference from share-based compensation expense | 142 | (3213) | 5139 |
| Net unrealized (appreciation) depreciation | (24816) | (135624) | 5622 |
| Income tax provision (benefit) | 23325 | 32863 | (13541) |
| Pre-tax book (income) loss not consolidated for tax purposes | (37630) | (59634) | 37420 |
| Book income and tax income differences, including debt origination, structuring fees, dividends, realized gains and changes in estimates | 17043 | 39819 | 93025 |
| Estimated taxable income (1) | 219670 | 204973 | 157048 |
| Taxable income earned in prior year and carried forward for distribution in current year | 50834 | 24359 | 29107 |
| Taxable income earned prior to period end and carried forward for distribution next period | (66892) | (65994) | (38248) |
| Dividend payable as of period end and paid in the following period | 17676 | 15159 | 13889 |
| Total distributions accrued or paid to common stockholders | $221288 | $178497 | $161796 |

---

___________________________

(1)MSCC's taxable income for each period is an estimate and will not be finally determined until MSCC files its tax return for each year. Therefore, the final taxable income, and the taxable income earned in each period and carried forward for distribution in the following period, may be different than this estimate.

The Taxable Subsidiaries primarily hold certain equity investments for Main Street. The Taxable Subsidiaries permit Main Street to hold equity investments in portfolio companies which are "pass-through" entities for tax purposes and to continue to comply with the "source-of-income" requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are consolidated with MSCC for U.S. GAAP financial reporting purposes, and the portfolio investments held by the Taxable Subsidiaries are included in Main Street's consolidated financial statements as portfolio investments and recorded at fair value. The Taxable Subsidiaries are not consolidated with MSCC for income tax purposes and may generate income tax expense, or benefit, and tax assets and liabilities, as a result of their ownership of certain portfolio investments. The taxable income, or loss, of the Taxable Subsidiaries may differ from their book income, or loss, due to temporary book and tax timing differences and permanent differences. The Taxable Subsidiaries are each taxed at

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

corporate income tax rates based on their taxable income. The income tax expense, or benefit, if any, and the related tax assets and liabilities, of the Taxable Subsidiaries are reflected in Main Street's consolidated financial statements.

The income tax expense (benefit) for Main Street is generally composed of (i) deferred tax expense (benefit), which is primarily the result of the net activity relating to the portfolio investments held in the Taxable Subsidiaries, including changes in loss carryforwards, changes in net unrealized appreciation or depreciation and other temporary book tax differences, and (ii) current tax expense, which is primarily the result of current U.S. federal income and state taxes and excise taxes on Main Street's estimated undistributed taxable income. The income tax expense, or benefit, and the related tax assets and liabilities generated by the Taxable Subsidiaries, if any, are reflected in Main Street's Consolidated Statements of Operations. Main Street's provision for income taxes was comprised of the following for the years ended December 31, 2022, 2021 and 2020:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **(dollars in thousands)** | **(dollars in thousands)** | **(dollars in thousands)** |
| **Current tax expense (benefit):** |  |  |  |
| Federal | $516 | $(235) | $497 |
| State | 1845 | 3377 | (1554) |
| Excise | 2838 | 2590 | 1647 |
| &nbsp;&nbsp;&nbsp;Total current tax expense | 5199 | 5732 | 590 |
| **Deferred tax expense (benefit):** |  |  |  |
| Federal | 13176 | 23205 | (13082) |
| State | 4950 | 3926 | (1049) |
| &nbsp;&nbsp;&nbsp;Total deferred tax expense (benefit) | 18126 | 27131 | (14131) |
| &nbsp;&nbsp;&nbsp;Total income tax provision (benefit) | $23325 | $32863 | $(13541) |

---

MSCC operates in a manner to maintain its RIC status and to eliminate corporate-level U.S. federal income tax (other than the 4% excise tax) by distributing sufficient investment company taxable income and long-term capital gains. As a result, MSCC will have an effective tax rate equal to 0% before the excise tax and income taxes incurred by the Taxable Subsidiaries. As such, a reconciliation of the differences between Main Street's reported income tax expense and its tax expense at the federal statutory rate of 21% is not meaningful.

As of December 31, 2022, the cost of investments for U.S. federal income tax purposes was $3,754.5 million, with such investments having a gross unrealized appreciation of $701.0 million and gross unrealized depreciation of $353.3 million.

Management believes that the realization of the deferred tax assets is more likely than not based on expectations as to future taxable income and scheduled reversals of temporary differences. Accordingly, Main Street did not record a

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

valuation allowance related to its deferred tax assets at December 31, 2022 and 2021. The following table sets forth the significant components of net deferred tax assets and liabilities as of December 31, 2022 and 2021:

---

| | | |
|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** |
| | **(dollars in thousands)** | **(dollars in thousands)** |
| **Deferred tax assets:** |  |  |
| Net operating loss carryforwards | $35043 | $34102 |
| Interest expense carryforwards | 6171 | 11283 |
| Other | 3401 | 2809 |
| &nbsp;&nbsp;&nbsp;Total deferred tax assets | 44615 | 48194 |
| **Deferred tax liabilities:** |  |  |
| Net unrealized appreciation of portfolio investments | (64219) | (49658) |
| Net basis differences in portfolio investments | (28245) | (28259) |
| &nbsp;&nbsp;&nbsp;Total deferred tax liabilities | (92464) | (77917) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax liabilities, net | $(47849) | $(29723) |

---

The net deferred tax liability at December 31, 2022 and 2021 was $47.8 million and $29.7 million, respectively, with the change primarily related to changes in net unrealized appreciation or depreciation, changes in loss carryforwards, and other temporary book-tax differences relating to portfolio investments held by the Taxable Subsidiaries. At December 31, 2022, for U.S. federal income tax purposes, the Taxable Subsidiaries had a net operating loss carryforward from prior years which, if unused, will expire in various taxable years from 2034 through 2037. Any net operating losses generated in 2018 and future periods are not subject to expiration and will carryforward indefinitely until utilized. Additionally, the Taxable Subsidiaries have interest expense limitation carryforwards which have an indefinite carryforward period. In addition, as of December 31, 2022, for U.S. federal income tax purposes at the RIC level, MSCC had net capital loss carryforwards totaling $56.1 million available to offset future capital gains, to the extent available and permitted by U.S. federal income tax law. However, as long as MSCC maintains its RIC status, any capital loss carryforwards at the RIC are not subject to a federal income tax-effect and are not subject to an expiration date.

**NOTE H — COMMON STOCK**

Main Street maintains a program with certain selling agents through which it can sell shares of its common stock by means of at-the-market offerings from time to time (the "ATM Program").

During the year ended December 31, 2022, Main Street sold 5,407,382 shares of its common stock at a weighted-average price of $39.29 per share and raised $212.4 million of gross proceeds under the ATM Program. Net proceeds were $209.9 million after commissions to the selling agents on shares sold and offering costs. As of December 31, 2022, sales transactions representing 43,217 shares had not settled and are not included in shares issued and outstanding on the face of the Consolidated Balance Sheets, but are included in the weighted-average shares outstanding in the Consolidated Statements of Operations and in the shares used to calculate the NAV per share. In March 2022, Main Street entered into new distribution agreements to sell up to 15,000,000 shares through the ATM Program. As of December 31, 2022, 10,462,684 shares remained available for sale under the ATM Program.

During August 2022, Main Street completed a public equity offering of 1,345,500 shares of common stock at a public offering price of $42.85 per share, including the underwriters' full exercise of their option to purchase 175,500 additional shares, resulting in total net proceeds, including exercise of the underwriters' option to purchase additional shares and after deducting underwriting discounts and estimated offering expenses payable by Main Street, of approximately $55.1 million.

During the year ended December 31, 2021, Main Street sold 2,332,795 shares of its common stock at a weighted-average price of $42.71 per share and raised $99.6 million of gross proceeds under the ATM Program. Net proceeds were $98.4 million after commissions to the selling agents on shares sold and offering costs.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

During the year ended December 31, 2020, Main Street sold 2,645,778 shares of its common stock at a weighted-average price of $32.10 per share and raised $84.9 million of gross proceeds under the ATM Program. Net proceeds were $83.8 million after commissions to the selling agents on shares sold and offering costs.

**NOTE I — DIVIDEND REINVESTMENT PLAN**

The dividend reinvestment feature of Main Street's dividend reinvestment and direct stock purchase plan (the "DRIP") provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. As a result, if Main Street declares a cash dividend, its stockholders who have not "opted out" of the DRIP by the dividend record date will have their cash dividend automatically reinvested into additional shares of MSCC common stock. The share requirements of the DRIP may be satisfied through the issuance of shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares will be valued based upon the final closing price of MSCC's common stock on the valuation date determined for each dividend by Main Street's Board of Directors. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased, before any associated brokerage or other costs. Main Street's DRIP is administered by its transfer agent on behalf of Main Street's record holders and participating brokerage firms. Brokerage firms and other financial intermediaries may decide not to participate in Main Street's DRIP but may provide a similar dividend reinvestment plan for their clients.

Summarized DRIP information for the years ended December 31, 2022, 2021 and 2020 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31,** | **Year Ended December 31,** | **Year Ended December 31,** |
| | **2022** | **2021** | **2020** |
| | **($ in thousands)** | **($ in thousands)** | **($ in thousands)** |
| DRIP participation | $24131 | $16283 | $16234 |
| Shares issued for DRIP | 625196 | 404384 | 517796 |

---

**NOTE J — SHARE-BASED COMPENSATION**

Main Street accounts for its share-based compensation plans using the fair value method, as prescribed by ASC 718, *Compensation—Stock Compensation*. Accordingly, for restricted stock awards ("RSAs"), Main Street measured the grant date fair value based upon the market price of its common stock on the date of the grant and amortizes the fair value of the awards as share-based compensation expense over the requisite service period, which is generally the vesting term.

Main Street's Board of Directors approves the issuance of shares of restricted stock to Main Street employees pursuant to the Main Street Capital Corporation 2022 Equity and Incentive Plan (the "Equity and Incentive Plan"). These shares generally vest over a three-year period from the grant date. The fair value is expensed over the service period, starting on the grant date. The following table summarizes the restricted stock issuances approved by Main Street's Board of Directors under the Equity and Incentive Plan, net of shares forfeited, if any, and the remaining shares of restricted stock available for issuance as of December 31, 2022.

---

| | |
|:---|:---|
| Restricted stock authorized under the plan | 5000000 |
| Less net restricted stock granted during: |  |
| &nbsp;&nbsp;Year ended December 31, 2022 | (14245) |
| Restricted stock available for issuance as of December 31, 2022 | 4985755 |

---

As of December 31, 2022, the following table summarizes the restricted stock issued to Main Street's non-employee directors and the remaining shares of restricted stock available for issuance pursuant to the Main Street Capital Corporation 2022 Non-Employee Director Restricted Stock Plan. These shares are granted upon appointment or election to

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

the board and vest on the day immediately preceding the annual meeting of stockholders following the respective grant date and are expensed over such service period.

---

| | |
|:---|:---|
| Restricted stock authorized under the plan | 300000 |
| Less net restricted stock granted during: |  |
| &nbsp;&nbsp;Year ended December 31, 2022 | (4590) |
| Restricted stock available for issuance as of December 31, 2022 | 295410 |

---

For the years ended December 31, 2022, 2021 and 2020, Main Street recognized total share-based compensation expense of $13.6 million, $10.9 million and $10.8 million, respectively, related to the restricted stock issued to Main Street employees and non-employee directors.

Summarized RSAs for the year ended December 31, 2022 is as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
|<br>**Restricted Stock Awards (RSAs):** | **Number**<br>**of Shares** | | **Weighted-Average Grant-Date Fair Value**<br>**($ per share)** |
| Non-vested, December 31, 2021 | 673350 |  | $33.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted (1) | 499274 |  | 42.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested (1)(2) | (321211) |  | 32.60 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (34012) |  | 38.92 |
| Non-vested, December 31, 2022 | 817401 |  | $38.78 |
| Aggregate intrinsic value as of December 31, 2022 (in thousands) | $30203 | (3) |  |

---

___________________________

(1)Restricted units generally vest over a three-year period from the grant date (as noted above).

(2)Vested shares included 116,177 shares withheld for payroll taxes paid on behalf of employees.

(3)Aggregate intrinsic value is the product of total non-vested restricted shares as of December 31, 2022 and $36.95 per share, the closing price of our common stock on December 31, 2022.

The total fair value of RSAs that vested during the years ended December 31, 2022, 2021 and 2020, was $10.5 million, $10.9 million and $10.3 million, respectively.

As of December 31, 2022, there was $21.6 million of total unrecognized compensation expense related to Main Street's non-vested restricted shares. This compensation expense is expected to be recognized over a remaining weighted-average period of 2.2 years as of December 31, 2022.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

**NOTE K — COMMITMENTS AND CONTINGENCIES**

At December 31, 2022, Main Street had the following outstanding commitments (in thousands):

---

| | |
|:---|:---|
| *Investments with equity capital commitments that have not yet funded:* | <u>Amount</u> |
| <u>Brightwood Capital Fund Investments</u> |  |
| Brightwood Capital Fund V, LP | $3000 |
| Brightwood Capital Fund III, LP | 300 |
|  | $3300 |
| <u>Freeport Fund Investments</u> |  |
| Freeport First Lien Loan Fund III LP | $6197 |
| Freeport Financial SBIC Fund LP | 3841 |
|  | $10038 |
| <u>Harris Preston Fund Investments</u> |  |
| HPEP 4, L.P. | $7668 |
| HPEP 3, L.P. | 1555 |
| HPEP 423 COR, LP | 600 |
| 2717 MH, L.P. | 52 |
|  | $9875 |
| MS Private Loan Fund I, LP | $750 |
| UnionRock Energy Fund II, LP | $2124 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Equity Commitments (1)(2) | $26087 |
| *Investments with commitments to fund revolving loans that have not been fully drawn or term loans with additional commitments not yet funded:* |  |
| Dalton US Inc. | $18985 |
| Xenon Arc, Inc. | 12406 |
| HEADLANDS OP-CO LLC | 10125 |
| MS Private Loan Fund I, LP | 10000 |
| PTL US Bidco, Inc | 9542 |
| JTI Electrical & Mechanical, LLC | 8421 |
| AMEREQUIP LLC. | 7704 |
| SI East, LLC | 7500 |
| NinjaTrader, LLC | 7472 |
| Archer Systems, LLC | 7115 |
| Veregy Consolidated, Inc. | 5875 |
| Watterson Brands, LLC | 5028 |
| Pearl Meyer Topco LLC | 5000 |
| Paragon Healthcare, Inc. | 4867 |
| Robbins Bros. Jewelry, Inc. | 4500 |
| South Coast Terminals Holdings, LLC | 4465 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | |
|:---|:---|
| Winter Services LLC | 4444 |
| Channel Partners Intermediateco, LLC | 4346 |
| Direct Marketing Solutions, Inc. | 4250 |
| Bettercloud, Inc. | 4189 |
| AB Centers Acquisition Corporation | 3707 |
| AVEX Aviation Holdings, LLC | 3684 |
| Microbe Formulas, LLC | 3601 |
| Classic H&G Holdco, LLC | 3440 |
| Bluestem Brands, Inc. | 3365 |
| MonitorUS Holding, LLC | 3322 |
| VVS Holdco, LLC | 3200 |
| SPAU Holdings, LLC | 3194 |
| Adams Publishing Group, LLC | 3153 |
| MetalForming AcquireCo, LLC | 2795 |
| Batjer TopCo, LLC | 2700 |
| GRT Rubber Technologies LLC | 2680 |
| Infolinks Media Buyco, LLC | 2520 |
| Nebraska Vet AcquireCo, LLC | 2500 |
| Engineering Research & Consulting, LLC | 2490 |
| CaseWorthy, Inc. | 2459 |
| West Star Aviation Acquisition, LLC | 2411 |
| Centre Technologies Holdings, LLC | 2400 |
| Burning Glass Intermediate Holding Company, Inc. | 2323 |
| GULF PACIFIC ACQUISITION, LLC | 2272 |
| RTIC Subsidiary Holdings, LLC | 2063 |
| MB2 Dental Solutions, LLC | 2023 |
| PPL RVs, Inc. | 2000 |
| The Affiliati Network, LLC | 1880 |
| Elgin AcquireCo, LLC | 1877 |
| Evergreen North America Acquisitions, LLC | 1854 |
| IG Parent Corporation | 1802 |
| ATS Operating, LLC | 1800 |
| Career Team Holdings, LLC | 1800 |
| Johnson Downie Opco, LLC | 1800 |
| Chamberlin Holding LLC | 1600 |
| Colonial Electric Company LLC | 1600 |
| Trantech Radiator Topco, LLC | 1600 |
| Cody Pools, Inc. | 1488 |
| American Health Staffing Group, Inc. | 1333 |
| RA Outdoors LLC | 1278 |
| Project Eagle Holdings, LLC | 1250 |
| Roof Opco, LLC | 1244 |
| Gamber-Johnson Holdings, LLC | 1200 |
| Eastern Wholesale Fence LLC | 1115 |
| KMS, LLC | 1086 |
| Mako Steel, LP | 953 |
| Hawk Ridge Systems, LLC | 815 |
| Mystic Logistics Holdings, LLC | 800 |
| Orttech Holdings, LLC | 800 |
| Project BarFly, LLC | 760 |
| DTE Enterprises, LLC | 750 |

---

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

---

| | |
|:---|:---|
| Market Force Information, LLC | 725 |
| Jensen Jewelers of Idaho, LLC | 500 |
| Invincible Boat Company, LLC. | 457 |
| NWN Corporation | 438 |
| Flame King Holdings, LLC | 400 |
| Gulf Publishing Holdings, LLC | 400 |
| Wall Street Prep, Inc. | 400 |
| Jackmont Hospitality, Inc. | 400 |
| Clad-Rex Steel, LLC | 400 |
| Acousti Engineering Company of Florida | 53 |
| Acumera, Inc. | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Loan Commitments | $248309 |
| &nbsp;&nbsp;&nbsp;&nbsp; Total Commitments | $274396 |

---

____________________

(1)This table excludes commitments related to six additional Other Portfolio investments for which the investment period has expired and remaining commitments may only be drawn to pay fund expenses. The Company does not expect any material future capital to be called on its commitment to these investments and as a result has excluded those commitments from this table.

(2)This table excludes commitments related to three additional Other Portfolio investments for which the investment period has expired and remaining commitments may only be drawn to pay fund expenses or for follow on investments in existing portfolio companies. The Company does not expect any material future capital to be called on its commitment to these investments to pay fund expenses, and based on representations from the fund manager, the Company does not expect any further capital will be called on its commitment for follow on investments. As a result, the Company has excluded those commitments from this table.

Main Street will fund its unfunded commitments from the same sources it uses to fund its investment commitments that are funded at the time they are made (which are typically through existing cash and cash equivalents and borrowings under the Credit Facilities). Main Street follows a process to manage its liquidity and ensure that it has available capital to fund its unfunded commitments as necessary. The Company had no unrealized appreciation or depreciation on the outstanding unfunded commitments as of December 31, 2022.

As of December 31, 2022, Main Street had one operating lease for its office space that commenced May 15, 2017, was amended on April 25, 2022, expires March 31, 2034, and contains two five-year extension options for a final expiration date of March 31, 2044.

In accordance with ASC 842, Main Street has recorded this lease as a right-of-use asset and a lease liability and records lease expense on a straight-line basis.

Total operating lease cost incurred by Main Street for each of the years ended December 31, 2022, 2021 and 2020 was $0.7 million. As of December 31, 2022, the asset related to the operating lease was $8.7 million and is included in the interest receivable and other assets balance on the Consolidated Balance Sheets. The lease liability was $11.1 million and is included in the accounts payable and other liabilities balance, net of tenant improvement allowances, on the Consolidated Balance Sheets. As of December 31, 2022, the remaining lease term was 11.3 years and the discount rate was 2.0%.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

The following table shows future minimum payments under Main Street's operating lease as of December 31, 2022 (in thousands):

---

| | |
|:---|:---|
| **For the Years Ended December 31,** | **Amount** |
| 2023 | $389 |
| 2024 | 1020 |
| 2025 | 1115 |
| 2026 | 1135 |
| 2027 | 1155 |
| Thereafter | 7673 |
| &nbsp;&nbsp;Total lease payments | 12487 |
| Less: lease payments representing interest | (1434) |
| &nbsp;&nbsp;Present value of lease liabilities | $11053 |

---

Main Street may, from time to time, be involved in litigation arising out of its operations in the normal course of business or otherwise. Furthermore, third parties may try to impose liability on Main Street in connection with the activities of its portfolio companies. While the outcome of any current legal proceedings cannot at this time be predicted with certainty, Main Street does not expect any current matters will materially affect its financial condition or results of operations; however, there can be no assurance whether any pending legal proceedings will have a material adverse effect on Main Street's financial condition or results of operations in any future reporting period.

**NOTE L — RELATED PARTY TRANSACTIONS**

As discussed further in *Note D — External Investment Manager*, the External Investment Manager is treated as a wholly-owned portfolio company of Main Street and is included as part of Main Street's Investment Portfolio. At December 31, 2022, Main Street had a receivable of $8.1 million due from the External Investment Manager, which included (i) $4.5 million related primarily to operating expenses incurred by Main Street as required to support the External Investment Manager's business and amounts due from the External Investment Manager to Main Street under a tax sharing agreement (see further discussion in *Note D — External Investment Manager*) and (ii) $3.7 million of dividends declared but not paid by the External Investment Manager. MSCC has entered into an agreement with the External Investment Manager to share employees in connection with its asset management business generally, and specifically for the External Investment Manager's relationship with MSC Income and its other clients (see further discussion in *Note A.1. — Organization and Basis of Presentation — Organization* and *Note D — External Investment Manager*).

From time to time, Main Street may make investments in clients of the External Investment Manager in the form of debt or equity capital on terms approved by Main Street's Board of Directors.

In May 2022, Main Street purchased 94,697 shares of common stock of MSC Income from MSC Income at the price shares were purchased by MSC Income stockholders pursuant to MSC Income's dividend reinvestment plan for its May dividend on such date. Main Street's purchase of MSC Income common stock was unanimously approved by the Board of Directors and MSC Income's board of directors, including each director who is not an "interested person," as such term is defined in Section 2(a)(19) of the 1940 Act, of each board. As of December 31, 2022, Main Street owned 94,697 shares of MSC Income. In addition, certain of Main Street's officers and employees own shares of MSC Income and therefore have direct pecuniary interests in MSC Income.

In December 2020, the External Investment Manager entered into an Investment Management Agreement with the Private Loan Fund to provide investment advisory and management services in exchange for an asset-based fee and certain incentive fees. The Private Loan Fund is a private investment fund exempt from registration under the 1940 Act that co-invests with Main Street in Main Street's Private Loan investment strategy. In connection with the Private Loan Fund's initial closing in December 2020, Main Street committed to contribute up to $10.0 million as a limited partner and is entitled to distributions on such interest. In February 2022, Main Street increased its total commitment to the Private Loan Fund from $10.0 million to $15.0 million. In addition, certain of Main Street's officers and employees (and certain of their

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

immediate family members) have made capital commitments to the Private Loan Fund as limited partners and therefore have direct pecuniary interests in the Private Loan Fund. As of December 31, 2022, Main Street has funded $14.3 million of its limited partner commitment and Main Street's unfunded commitment was $0.7 million. Main Street's limited partner commitment to the Private Loan Fund was unanimously approved by the Board of Directors, including each director who is not an "interested person," as such term is defined in Section 2(a)(19) of the 1940 Act.

Additionally, Main Street provided the Private Loan Fund with a revolving line of credit pursuant to an Unsecured Revolving Promissory Note, dated February 5, 2021 and was subsequently amended on November 30, 2021 and on December 29, 2021 (as amended, the "PL Fund 2021 Note"), in an aggregate amount equal to the amount of limited partner capital commitments to the Private Loan Fund up to $85.0 million. Borrowings under the PL Fund 2021 Note bore interest at a fixed rate of 5.00% per annum and matured on February 28, 2022. The PL Fund 2021 Note was unanimously approved by Main Street's Board of Directors, including each director who is not an "interested person," as such term is defined in Section 2(a)(19) of the 1940 Act. In February 2022, the Private Loan Fund fully repaid all borrowings outstanding under the PL Fund 2021 Note and the PL Fund 2021 Note was extinguished.

In March 2022, Main Street provided the Private Loan Fund with a revolving line of credit pursuant to a Secured Revolving Promissory Note, dated March 17, 2022 (the "PL Fund 2022 Note"), which provides for borrowings up to $10.0 million. Borrowings under the PL Fund 2022 Note bear interest at a fixed rate of 5.00% per annum and mature on the date upon which the Private Loan Fund's investment period concludes, which is scheduled to occur in March 2026. Available borrowings under the PL Fund 2022 Note are subject to a 0.25% non-use fee. The PL Fund 2022 Note was unanimously approved by Main Street's Board of Directors, including each director who is not an "interested person," as such term is defined in Section 2(a)(19) of the 1940 Act. As of December 31, 2022, there were no borrowings outstanding under the PL Fund 2022 Note.

In November 2015, Main Street's Board of Directors approved and adopted the Main Street Capital Corporation Deferred Compensation Plan (the "2015 Deferred Compensation Plan"). The 2015 Deferred Compensation Plan became effective on January 1, 2016 and replaced the Deferred Compensation Plan for Non-Employee Directors previously adopted by the Board of Directors in June 2013 (the "2013 Deferred Compensation Plan"). Under the 2015 Deferred Compensation Plan, non-employee directors and certain key employees may defer receipt of some or all of their cash compensation and directors' fees, subject to certain limitations. Individuals participating in the 2015 Deferred Compensation Plan receive distributions of their respective balances based on predetermined payout schedules or other events as defined by the plan and are also able to direct investments made on their behalf among investment alternatives permitted from time to time under the plan, including phantom Main Street stock units. As of December 31, 2022, $15.3 million of compensation, plus net unrealized gains and losses and investment income, and minus previous distributions, was deferred under the 2015 Deferred Compensation Plan (including amounts previously deferred under the 2013 Deferred Compensation Plan). Of this amount, $6.1 million is deferred into phantom Main Street stock units, representing 165,248 shares of Main Street's common stock. Any amounts deferred under the plan represented by phantom Main Street stock units will not be issued or included as outstanding on the Consolidated Statements of Changes in Net Assets until such shares are actually distributed to the participant in accordance with the plan, but the related phantom stock units are included in weighted-average shares outstanding with the related dollar amount of the deferral included in total expenses in Main Street's Consolidated Statements of Operations as the deferred fees represented by such phantom stock units are earned over the service period. The dividend amounts related to additional phantom stock units are included in the Consolidated Statements of Changes in Net Assets as an increase to dividends to stockholders offset by a corresponding increase to additional paid-in capital.

**NOTE M — SUBSEQUENT EVENTS**

In January 2023, Main Street expanded its total commitments under the Corporate Facility from $920.0 million to $980.0 million. The recent increase in total commitments was executed under the accordion feature of the Corporate Facility which allows for an increase up to $1.4 billion in total commitments under the facility from new and existing lenders on the same terms and conditions as the existing commitments.

In February 2023, Main Street entered into a first supplement to the Master Note Purchase Agreement dated December 23, 2022, governing the issuance of $50.0 million in aggregate principal amount of 7.53% Series B unsecured notes (the "December 2025 Follow-On Notes") to qualified institutional investors in a private placement. The December

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u>

**MAIN STREET CAPITAL CORPORATION**

**Notes to the Consolidated Financial Statements (Continued)**

2025 Follow-On Notes were issued on February 2, 2023 and will mature on December 23, 2025 unless redeemed, purchased or prepaid prior to such date by Main Street or its affiliates in accordance with their terms. Interest on the December 2025 Follow-On Notes will be due semiannually on June 23 and December 23. In addition, Main Street is obligated to offer to repay the December 2025 Follow-On Notes at par plus accrued and unpaid interest if certain change in control events occur. The December 2025 Follow-On Notes are general unsecured obligations of Main Street's that rank pari passu with all of Main Street's outstanding and future unsecured unsubordinated indebtedness.

In February 2023, Main Street declared a supplemental cash dividend of $0.175 per share payable in March 2023. This supplemental cash dividend is in addition to the previously announced regular monthly cash dividends that Main Street declared $0.225 per share for each of January, February and March 2023 or total regular monthly cash dividends of $0.675 per share first quarter of 2023.

In February 2023, Main Street also declared regular monthly dividends of $0.225 per share for each of April, May and June of 2023. These regular monthly dividends equal a total of $0.675 per share for the second quarter of 2023, representing a 4.7% increase from the regular monthly dividends paid in the second quarter of 2022. Including the regular monthly and supplemental dividends declared for the first and second quarters of 2023, Main Street will have paid $36.645 per share in cumulative dividends since its October 2007 initial public offering.

------

<u>[Table of](#i2fdd50ddfd9c475aa1777f627f470473_7)[c](#i2fdd50ddfd9c475aa1777f627f470473_7)[ontents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S**chedule 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
| **<u>Majority-owned investments</u>** | | | | | | | | | | | | | |
| ASK (Analytical Systems Keco Holdings, LLC) |  | L+ | 10.00% |  | Secured Debt | (8) | $— | $— | $6 | $(4) | $1 | $— | $(3) |
|  | 14.13% | L+ | 10.00% |  | Secured Debt | (8) |  |  | 690 | 4740 | 85 | 280 | 4545 |
|  | 14.13% |  |  |  | Preferred Member Units | (8) |  |  |  |  |  |  |  |
|  |  |  |  |  | Preferred Member Units | (8) |  | (1390) |  | 4894 |  | 1390 | 3504 |
|  |  |  |  |  | Warrants | (8) |  |  |  |  |  |  |  |
| Brewer Crane Holdings, LLC | 14.12% | L+ | 10.00% |  | Secured Debt | (9) |  |  | 862 | 8037 | 23 | 2096 | 5964 |
|  |  |  |  |  | Preferred Member Units | (9) |  | (630) | 828 | 7710 |  | 630 | 7080 |
| Café Brazil, LLC |  |  |  |  | Member Units | (8) |  | (360) | 178 | 2570 |  | 360 | 2210 |
| California Splendor Holdings LLC | 13.75% | L+ | 10.00% |  | Secured Debt | (9) |  | 49 | 3454 | 27915 | 85 |  | 28000 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 12220 | 250 | 13275 | 12220 |  | 25495 |
|  | 15.00% |  |  | 15.00% | Preferred Member Units | (9) |  |  | 933 | 9510 | 933 | 6449 | 3994 |
| Clad-Rex Steel, LLC |  | SF+ | 9.00% |  | Secured Debt | (5) |  |  | 4 |  |  |  |  |
|  | 13.23% | SF+ | 9.00% |  | Secured Debt | (5) |  |  | 1255 | 10401 | 39 |  | 10440 |
|  | 10.00% |  |  |  | Secured Debt | (5) |  |  | 107 | 1071 | 1 | 33 | 1039 |
|  |  |  |  |  | Member Units | (5) |  | (2030) | 758 | 10250 |  | 2030 | 8220 |
|  |  |  |  |  | Member Units | (5) |  | 80 |  | 530 | 80 |  | 610 |
| CMS Minerals Investments |  |  |  |  | Member Units | (9) |  | 230 | 198 | 1974 | 230 | 534 | 1670 |
| Cody Pools, Inc. | 15.38% | L+ | 10.50% |  | Secured Debt | (8) |  | 19 | 119 | (13) | 4971 | 3496 | 1462 |
|  | 15.38% | L+ | 10.50% |  | Secured Debt | (8) |  | (86) | 5615 | 42497 | 86 | 1782 | 40801 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 10540 | 4015 | 47640 | 10540 |  | 58180 |
| CompareNetworks Topco, LLC |  | L+ | 9.00% |  | Secured Debt | (9) |  |  |  |  |  |  |  |
|  | 13.13% | L+ | 9.00% |  | Secured Debt | (9) |  | (16) | 642 | 6477 | 16 | 1252 | 5241 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 7830 | 632 | 12000 | 7830 |  | 19830 |
| Datacom, LLC | 7.50% |  |  |  | Secured Debt | (8) |  |  | 4 |  | 223 |  | 223 |
|  | 7.50% |  |  |  | Secured Debt | (8) |  | 228 | 829 | 7668 | 391 | 270 | 7789 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 60 | 96 | 2610 | 60 |  | 2670 |
| Direct Marketing Solutions, Inc. |  | L+ | 11.00% |  | Secured Debt | (9) |  | 88 | 235 | (22) | 4272 | 4250 |  |
|  | 15.13% | L+ | 11.00% |  | Secured Debt | (9) |  | 145 | 327 |  | 27267 |  | 27267 |
|  |  | L+ | 11.00% |  | Secured Debt | (9) |  | (137) | 2953 | 24070 |  | 24070 |  |
|  |  |  |  |  | Preferred Stock | (9) |  | 3870 | 1371 | 18350 | 3870 |  | 22220 |
| Elgin AcquireCo, LLC |  | SF+ | 6.00% |  | Secured Debt | (5) |  |  | 2 |  |  | 9 | (9) |
|  | 12.00% |  |  |  | Secured Debt | (5) |  |  | 948 |  | 18594 |  | 18594 |
|  | 9.00% |  |  |  | Secured Debt | (5) |  |  | 144 |  | 6301 | 7 | 6294 |
|  |  |  |  |  | Common Stock | (5) |  |  |  |  | 9668 | 2065 | 7603 |
|  |  |  |  |  | Common Stock | (5) |  |  |  |  | 1558 |  | 1558 |
| Gamber-Johnson Holdings, LLC |  | SF+ | 8.50% |  | Secured Debt | (5) |  |  | 6 |  |  |  |  |
|  | 11.50% | SF+ | 8.50% |  | Secured Debt | (5) |  | 393 | 1152 |  | 64078 |  | 64078 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
|  |  | L+ | 7.50% |  | Secured Debt | (5) |  | (63) | 2233 | 21598 |  | 21598 |  |
|  |  |  |  |  | Member Units | (5) |  | 1190 | 895 | 49700 | 1190 |  | 50890 |
| GRT Rubber Technologies LLC | 10.12% | L+ | 6.00% |  | Secured Debt | (8) |  |  | 25 |  | 670 |  | 670 |
|  | 12.12% | L+ | 8.00% |  | Secured Debt | (8) |  | (33) | 3973 | 38885 | 1641 | 33 | 40493 |
|  |  |  |  |  | Member Units | (8) |  | (1750) | 2525 | 46190 |  | 1750 | 44440 |
| Gulf Publishing Holdings, LLC |  | L+ | 9.50% |  | Secured Debt | (8) |  |  | 7 | 257 |  | 257 |  |
|  |  |  |  | 6.25% | Secured Debt | (8) | (5822) | 3848 | 503 | 9717 |  | 9717 |  |
|  | 12.50% |  |  |  | Secured Debt | (8) |  | (116) | 77 |  | 2400 | 116 | 2284 |
|  |  |  |  |  | Member Units | (8) |  |  |  |  |  |  |  |
|  |  |  |  |  | Preferred Equity | (8) |  | (1820) |  |  | 5600 | 1820 | 3780 |
| Jensen Jewelers of Idaho, LLC |  | P+ | 6.75% |  | Secured Debt | (9) |  |  | 3 |  |  |  |  |
|  | 13.75% | P+ | 6.75% |  | Secured Debt | (9) |  | (8) | 292 | 2550 | 8 | 108 | 2450 |
|  |  |  |  |  | Member Units | (9) |  | 2550 | 2784 | 12420 | 2550 |  | 14970 |
| Kickhaefer Manufacturing Company, LLC | 11.50% |  |  |  | Secured Debt | (5) |  |  | 2430 | 20324 | 50 |  | 20374 |
|  | 9.00% |  |  |  | Secured Debt | (5) |  |  | 352 | 3876 | 2 | 36 | 3842 |
|  |  |  |  |  | Preferred Equity | (5) |  | (5090) |  | 12310 |  | 5090 | 7220 |
|  |  |  |  |  | Member Units | (5) |  | 390 | 113 | 2460 | 390 |  | 2850 |
| Market Force Information, LLC | 15.13% | L+ | 11.00% |  | Secured Debt | (9) |  | (163) | 592 | 3400 | 2853 | 163 | 6090 |
|  | 12.00% |  |  | 12.00% | Secured Debt | (9) |  | (7325) |  | 8936 |  | 7326 | 1610 |
|  |  |  |  |  | Member Units | (9) |  |  |  |  |  |  |  |
| MetalForming AcquireCo, LLC |  |  |  |  | Secured Debt | (7) |  |  | 16 |  |  |  |  |
|  | 12.75% |  |  |  | Secured Debt | (7) |  |  | 1143 |  | 23576 |  | 23576 |
|  | 8.00% |  |  | 8.00% | Preferred Equity | (7) |  |  | 95 |  | 6010 |  | 6010 |
|  |  |  |  |  | Common Stock | (7) |  |  |  |  | 1537 |  | 1537 |
| MH Corbin Holding LLC | 13.00% |  |  |  | Secured Debt | (5) |  | 699 | 999 | 5934 | 708 | 2094 | 4548 |
|  |  |  |  |  | Preferred Member Units | (5) |  |  |  |  |  |  |  |
|  |  |  |  |  | Preferred Member Units | (5) |  |  |  |  |  |  |  |
| MSC Adviser I, LLC |  |  |  |  | Member Units | (8) |  | (17470) | 9297 | 140400 |  | 17470 | 122930 |
| Mystic Logistics Holdings, LLC |  |  |  |  | Secured Debt | (6) |  |  | 4 |  |  |  |  |
|  | 10.00% |  |  |  | Secured Debt | (6) |  | (1) | 607 | 6378 | 1 | 633 | 5746 |
|  |  |  |  |  | Common Stock | (6) |  | 13990 | 4202 | 8840 | 13990 |  | 22830 |
| OMi Topco, LLC | 12.00% |  |  |  | Secured Debt | (8) |  | (53) | 2135 | 18000 | 53 | 2303 | 15750 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 2600 | 2154 | 20210 | 2600 |  | 22810 |
| PPL RVs, Inc. |  | L+ | 7.00% |  | Secured Debt | (8) |  | 9 | 79 | 727 | 1273 | 2000 |  |
|  | 10.25% | L+ | 7.00% |  | Secured Debt | (8) |  | 247 | 1714 | 11655 | 10000 |  | 21655 |
|  |  |  |  |  | Common Stock | (8) |  | 4590 | 1627 | 14360 | 4590 |  | 18950 |
|  |  |  |  |  | Common Stock | (8) |  |  |  |  | 238 |  | 238 |
| Principle Environmental, LLC |  |  |  |  | Secured Debt | (8) |  |  | 104 | 1465 | 9 | 1474 |  |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
|  | 13.00% |  |  |  | Secured Debt | (8) |  |  | 804 | 5808 | 24 | 26 | 5806 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 1260 | 1355 | 11160 | 1260 |  | 12420 |
|  |  |  |  |  | Common Stock | (8) |  | (120) |  | 710 |  | 120 | 590 |
| Quality Lease Service, LLC |  |  |  |  | Member Units | (7) |  | 76 |  | 2148 | 77 | 1700 | 525 |
| Robbins Bros. Jewelry, Inc. |  |  |  |  | Secured Debt | (9) |  |  | 32 | (44) | 9 |  | (35) |
|  | 12.50% |  |  |  | Secured Debt | (9) |  |  | 4678 | 36000 | 78 | 674 | 35404 |
|  |  |  |  |  | Preferred Equity | (9) |  | 3810 | 558 | 11070 | 3810 |  | 14880 |
| Trantech Radiator Topco, LLC |  |  |  |  | Secured Debt | (7) |  | 5 | 7 | (8) | 8 |  |  |
|  | 12.00% |  |  |  | Secured Debt | (7) |  | (23) | 1044 | 8720 | 23 | 823 | 7920 |
|  |  |  |  |  | Common Stock | (7) |  | (860) | 116 | 8660 |  | 860 | 7800 |
| Ziegler's NYPD, LLC | 12.00% |  |  |  | Secured Debt | (8) |  |  | 71 | 625 |  | 175 | 450 |
|  | 6.50% |  |  |  | Secured Debt | (8) |  | (55) | 66 | 1000 |  | 55 | 945 |
|  | 14.00% |  |  |  | Secured Debt | (8) |  | (74) | 390 | 2750 |  | 74 | 2676 |
|  |  |  |  |  | Preferred Member Units | (8) |  | (1890) |  | 2130 |  | 1890 | 240 |
|  |  |  |  |  | Warrants | (8) |  |  |  |  |  |  |  |
| **<u>Other controlled investments</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 2717 MH, L.P. |  |  |  |  | LP Interests (2717 MH, L.P.) | (8) |  | 2389 |  | 3971 | 3581 |  | 7552 |
|  |  |  |  |  | LP Interests (2717 HPP-MS, L.P.) | (8) |  |  |  |  | 248 |  | 248 |
| ASC Interests, LLC | 13.00% |  |  |  | Secured Debt | (8) |  |  | 36 | 200 | 230 | 30 | 400 |
|  | 13.00% |  |  |  | Secured Debt | (8) |  |  | 266 | 1636 | 13 |  | 1649 |
|  |  |  |  |  | Member Units | (8) |  | 80 |  | 720 | 80 |  | 800 |
| ATS Workholding, LLC | 5.00% |  |  |  | Secured Debt | (9) |  | (620) |  | 1088 | 188 | 642 | 634 |
|  | 5.00% |  |  |  | Secured Debt | (9) |  | (869) |  | 1917 |  | 912 | 1005 |
|  |  |  |  |  | Preferred Member Units | (9) |  |  |  |  |  |  |  |
| Barfly Ventures, LLC | 7.00% |  |  |  | Secured Debt | (5) |  |  | 51 | 710 | 1 |  | 711 |
|  |  |  |  |  | Member Units | (5) |  | 1390 |  | 1930 | 1390 |  | 3320 |
| Batjer TopCo, LLC |  |  |  |  | Secured Debt | (8) |  |  | 5 |  | 451 | 459 | (8) |
|  |  |  |  |  | Secured Debt | (8) |  |  |  |  |  |  |  |
|  | 11.00% |  |  |  | Secured Debt | (8) |  |  | 1139 |  | 10933 |  | 10933 |
|  |  |  |  |  | Preferred Stock | (8) |  |  | 631 |  | 4095 |  | 4095 |
| Bolder Panther Group, LLC |  |  |  |  | Secured Debt | (9) |  |  | 23 |  |  |  |  |
|  | 13.39% | SF+ | 9.26% |  | Secured Debt | (9) |  | 305 | 9164 | 39000 | 60194 |  | 99194 |
|  |  |  |  |  | Class A Preferred Member Units | (9) |  |  | 2466 | 10194 |  | 10194 |  |
|  | 8.00% |  |  |  | Class B Preferred Member Units | (9) |  | 8250 | 1210 | 23170 | 8250 |  | 31420 |
| Bridge Capital Solutions Corporation | 13.00% |  |  |  | Secured Debt | (6) |  |  | 1162 | 8813 |  |  | 8813 |
|  | 13.00% |  |  |  | Secured Debt | (6) |  |  | 132 | 1000 |  |  | 1000 |
|  |  |  |  |  | Preferred Member Units | (6) |  |  | 100 | 1000 |  |  | 1000 |
|  |  |  |  |  | Warrants | (6) |  | 117 |  | 1712 | 116 |  | 1828 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
|  |  |  |  |  | Warrants | (6) |  | 163 |  | 2348 | 164 |  | 2512 |
| CBT Nuggets, LLC |  |  |  |  | Member Units | (9) |  | (1620) | 3305 | 50620 |  | 1618 | 49002 |
| Centre Technologies Holdings, LLC |  | L+ | 9.00% |  | Secured Debt | (8) |  |  | 28 |  | 1440 | 1440 |  |
|  | 13.13% | L+ | 9.00% |  | Secured Debt | (8) |  | 507 | 1767 | 8864 | 6476 | 386 | 14954 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 2578 | 120 | 5840 | 2860 |  | 8700 |
| Chamberlin Holding LLC |  | L+ | 6.00% |  | Secured Debt | (8) |  |  | 8 |  |  |  |  |
|  | 12.13% | L+ | 8.00% |  | Secured Debt | (8) |  | (68) | 1845 | 17817 | 68 | 940 | 16945 |
|  |  |  |  |  | Member Units | (8) |  | (1220) | 1853 | 24140 |  | 1220 | 22920 |
|  |  |  |  |  | Member Units | (8) |  | 719 | 78 | 1540 | 1170 |  | 2710 |
| Charps, LLC | 10.00% |  |  |  | Unsecured Debt | (5) |  | (44) | 613 | 5694 | 44 | 44 | 5694 |
|  |  |  |  |  | Preferred Member Units | (5) |  | (650) | 764 | 13990 |  | 650 | 13340 |
| Colonial Electric Company LLC |  |  |  |  | Secured Debt | (6) |  |  | 48 |  | 1600 | 1600 |  |
|  | 12.00% |  |  |  | Secured Debt | (6) |  |  | 2953 | 24351 | 60 | 1260 | 23151 |
|  |  |  |  |  | Preferred Member Units | (6) |  | 30 | 1397 | 9130 | 30 |  | 9160 |
| Copper Trail Energy Fund I, LP - CTMH |  |  |  |  | LP Interests (CTMH, LP) | (9) |  |  |  | 710 |  | 122 | 588 |
| Digital Products Holdings LLC | 14.13% | L+ | 10.00% |  | Secured Debt | (5) |  |  | 1991 | 16801 | 43 | 1321 | 15523 |
|  |  |  |  |  | Preferred Member Units | (5) |  |  | 200 | 9835 |  |  | 9835 |
| Garreco, LLC | 9.50% | L+ | 8.00% |  | Secured Debt | (8) |  |  | 383 | 4196 |  | 370 | 3826 |
|  |  |  |  |  | Member Units | (8) |  | (470) | 240 | 2270 |  | 470 | 1800 |
| Gulf Manufacturing, LLC |  |  |  |  | Member Units | (8) |  | 1150 | 1715 | 5640 | 1150 |  | 6790 |
| Harrison Hydra-Gen, Ltd. |  |  |  |  | Common Stock | (8) |  | (250) |  | 3530 |  | 250 | 3280 |
| Johnson Downie Opco, LLC |  | L+ | 11.50% |  | Secured Debt | (8) |  | 14 | 13 | (18) | 18 |  |  |
|  | 15.63% | L+ | 11.50% |  | Secured Debt | (8) |  | 79 | 1503 | 11362 | 114 | 1477 | 9999 |
|  |  |  |  |  | Preferred Equity | (8) |  | 2390 | 1062 | 3150 | 2390 |  | 5540 |
| JorVet Holdings, LLC | 12.00% |  |  |  | Secured Debt | (9) |  |  | 2680 |  | 25432 |  | 25432 |
|  |  |  |  |  | Preferred Equity | (9) |  |  | 922 |  | 10741 |  | 10741 |
| KBK Industries, LLC |  |  |  |  | Member Units | (5) |  | 1950 | 1671 | 13620 | 1950 |  | 15570 |
| MS Private Loan Fund |  |  |  |  | Secured Debt | (8) |  |  | 28 |  | 5300 | 5300 |  |
|  |  |  |  |  | Secured Debt | (8) |  |  | 431 | 63151 | 13700 | 76851 |  |
|  |  |  |  |  | LP Interests | (8) |  | 502 | 742 | 2581 | 12252 |  | 14833 |
| MSC Income Fund, Inc. |  |  |  |  | Common Equity | (8) |  | 3 | 30 |  | 753 |  | 753 |
| NAPCO Precast, LLC |  |  |  |  | Member Units | (8) |  | (1730) | 4 | 13560 |  | 1730 | 11830 |
| Nebraska Vet AcquireCo, LLC (NVS) |  | L+ | 7.00% |  | Secured Debt | (5) |  |  | 10 |  |  |  |  |
|  | 12.00% |  |  |  | Secured Debt | (5) |  | 122 | 1778 | 4829 | 15265 |  | 20094 |
|  | 12.00% |  |  |  | Secured Debt | (5) |  | 66 | 1299 | 10412 | 88 |  | 10500 |
|  |  |  |  |  | Preferred Member Units | (5) |  |  |  | 7700 |  |  | 7700 |
| NexRev LLC |  |  |  |  | Secured Debt | (8) |  |  | 29 | 800 |  | 800 |  |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
|  | 11.00% |  |  |  | Secured Debt | (8) |  | (729) | 1923 | 13245 |  | 4768 | 8477 |
|  |  |  |  |  | Preferred Member Units | (8) |  | (2913) | 81 | 2690 | 1333 | 2913 | 1110 |
| NRP Jones, LLC | 12.00% |  |  |  | Secured Debt | (5) |  |  | 253 | 2080 |  |  | 2080 |
|  |  |  |  |  | Member Units | (5) |  | (1585) | 578 | 6200 |  | 1585 | 4615 |
|  |  |  |  |  | Member Units | (5) |  | (65) | 17 | 240 |  | 65 | 175 |
| NuStep, LLC | 10.63% | L+ | 6.50% |  | Secured Debt | (5) |  |  | 323 | 1720 | 2679 |  | 4399 |
|  | 12.00% |  |  |  | Secured Debt | (5) |  | (4) | 2180 | 17240 | 1178 | 4 | 18414 |
|  |  |  |  |  | Preferred Member Units | (5) |  | (5460) |  | 13500 |  | 5460 | 8040 |
|  |  |  |  |  | Preferred Member Units | (5) |  | 3088 |  |  | 5150 |  | 5150 |
| Orttech Holdings, LLC |  | L+ | 11.00% |  | Secured Debt | (5) |  |  | 16 | 175 |  | 175 |  |
|  | 15.13% | L+ | 11.00% |  | Secured Debt | (5) |  |  | 3207 | 23976 | 53 | 600 | 23429 |
|  |  |  |  |  | Preferred Stock | (5) |  | 1750 | 900 | 10000 | 1750 |  | 11750 |
| Pearl Meyer Topco LLC |  |  |  |  | Secured Debt | (6) |  |  | 31 |  | 1500 | 1500 |  |
|  |  |  |  |  | Secured Debt | (6) |  |  |  |  |  |  |  |
|  | 12.00% |  |  |  | Secured Debt | (6) |  | (92) | 3714 | 32674 | 92 | 4085 | 28681 |
|  |  |  |  |  | Preferred Equity | (6) |  | 16290 | 8204 | 26970 | 16290 |  | 43260 |
| River Aggregates, LLC |  |  |  |  | Member Units | (8) |  | 340 |  | 3280 | 340 |  | 3620 |
| Tedder Industries, LLC | 12.00% |  |  |  | Secured Debt | (9) |  |  | 215 | 1040 | 800 |  | 1840 |
|  | 12.00% |  |  |  | Secured Debt | (9) |  | (71) | 1900 | 15141 | 51 | 72 | 15120 |
|  |  |  |  |  | Preferred Member Units | (9) |  | (1564) |  | 8579 | 666 | 1564 | 7681 |
| Televerde, LLC |  |  |  |  | Member Units | (8) |  | (1872) | 2 | 7280 |  | 1872 | 5408 |
|  |  |  |  |  | Preferred Stock | (8) |  | 1076 |  |  | 1794 |  | 1794 |
| Vision Interests, Inc. |  |  |  |  | Series A Preferred Stock | (9) |  |  | 144 | 3000 |  |  | 3000 |
| VVS Holdco LLC |  | L+ | 6.00% |  | Secured Debt | (5) |  |  | 55 | 1169 | 811 | 2001 | (21) |
|  | 11.50% |  |  |  | Secured Debt | (5) |  |  | 3606 | 30100 | 61 |  | 30161 |
|  |  |  |  |  | Preferred Equity | (5) |  | 100 | 518 | 11840 | 100 |  | 11940 |
| **Other** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Amounts related to investments transferred to or from other 1940 Act classification during the period** |  |  |  |  |  |  |  | 3677 | 1491 | 6123 |  |  |  |
| **Total Control investments** |  |  |  |  |  |  | $(5822) | $56682 | $155967 | $1489257 | $488176 | $268138 | $1703172 |
| **<u>Affiliate Investments</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AAC Holdings, Inc. | 18.00% |  |  | 18.00% | Secured Debt | (7) | $— | $178 | $2032 | $9794 | $1756 | $— | $11550 |
|  |  |  |  |  | Common Stock | (7) |  | (2079) |  | 2079 |  | 2079 |  |
|  |  |  |  |  | Warrants | (7) |  | (1940) |  | 1940 |  | 1940 |  |
| AFG Capital Group, LLC |  |  |  |  | Secured Debt | (8) |  |  | 2 | 144 |  | 144 |  |
|  |  |  |  |  | Preferred Member Units | (8) |  | 1660 | 200 | 7740 | 1660 |  | 9400 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
| ATX Networks Corp. | 12.23% | L+ | 7.50% |  | Secured Debt | (6) |  | 134 | 758 | 7092 | 362 | 1111 | 6343 |
|  | 10.00% |  |  | 10.00% | Unsecured Debt | (6) |  | 306 | 329 | 1963 | 635 |  | 2598 |
|  |  |  |  |  | Common Stock | (6) |  | 3270 |  |  | 3270 |  | 3270 |
| BBB Tank Services, LLC | 15.12% | L+ | 11.00% |  | Unsecured Debt | (8) |  |  | 105 | 800 |  |  | 800 |
|  | 15.12% | L+ | 11.00% |  | Unsecured Debt | (8) |  | 379 | 527 | 1707 | 379 |  | 2086 |
|  |  |  |  |  | Member Units | (8) |  |  |  |  |  |  |  |
|  | 15.00% |  |  |  | Preferred Stock (non-voting) | (8) |  |  |  |  |  |  |  |
| Boccella Precast Products LLC | 10.00% |  |  |  | Secured Debt | (6) |  |  | 32 | 320 |  |  | 320 |
|  |  |  |  |  | Member Units | (6) |  | (1860) | 66 | 4830 |  | 1860 | 2970 |
| Buca C, LLC | 9.00% |  |  |  | Secured Debt | (7) |  | 103 | 1894 | 14370 | 103 | 2136 | 12337 |
|  | 6.00% |  |  | 6.00% | Preferred Member Units | (7) |  |  |  |  |  |  |  |
| Career Team Holdings, LLC |  | L+ | 6.00% |  | Secured Debt | (6) |  |  | 10 |  | 621 | 630 | (9) |
|  | 12.50% |  |  |  | Secured Debt | (6) |  |  | 2607 | 20050 | 40 |  | 20090 |
|  |  |  |  |  | Common Stock | (6) |  |  |  | 4500 |  |  | 4500 |
| Chandler Signs Holdings, LLC |  |  |  |  | Class A Units | (8) |  | 1330 |  | 460 | 1330 |  | 1790 |
| Classic H&G Holdings, LLC | 9.75% | L+ | 6.00% |  | Secured Debt | (6) |  |  | 639 | 4000 | 11720 | 11160 | 4560 |
|  | 8.00% |  |  |  | Secured Debt | (6) |  | (43) | 1606 | 19274 | 43 | 43 | 19274 |
|  |  |  |  |  | Preferred Member Units | (6) |  | 9380 | 1711 | 15260 | 9377 |  | 24637 |
| Congruent Credit Opportunities Funds |  |  |  |  | LP Interests (Congruent Credit Opportunities Fund <br> III, LP) | (8) |  | (142) | 566 | 9959 |  | 2302 | 7657 |
| DMA Industries, LLC | 12.00% |  |  |  | Secured Debt | (7) |  | 165 | 2621 | 20993 | 207 |  | 21200 |
|  |  |  |  |  | Preferred Equity | (7) |  | 1316 |  | 5944 | 1316 |  | 7260 |
| Dos Rios Partners |  |  |  |  | LP Interests (Dos Rios Partners, LP) | (8) | 202 | (1055) | 1 | 10329 | 202 | 1404 | 9127 |
|  |  |  |  |  | LP Interests (Dos Rios Partners - A, LP) | (8) | 64 | (335) |  | 3280 | 64 | 446 | 2898 |
| Dos Rios Stone Products LLC |  |  |  |  | Class A Preferred Units | (8) |  | 690 |  | 640 | 690 |  | 1330 |
| EIG Fund Investments |  |  |  |  | LP Interests (EIG Global Private Debt Fund-A, L.P.) | (8) | 20 |  | 103 | 547 | 1102 | 636 | 1013 |
| Flame King Holdings, LLC | 10.75% | L+ | 6.50% |  | Secured Debt | (9) |  | 60 | 669 | 6324 | 1276 |  | 7600 |
|  | 13.25% | L+ | 9.00% |  | Secured Debt | (9) |  | 162 | 2739 | 20996 | 204 |  | 21200 |
|  |  |  |  |  | Preferred Equity | (9) |  | 7180 | 2153 | 10400 | 7180 |  | 17580 |
| Freeport Financial SBIC Fund LP |  |  |  |  | LP Interests (Freeport Financial SBIC Fund LP) | (5) |  | (128) | 3 | 6078 |  | 2595 | 3483 |
|  |  |  |  |  | LP Interests (Freeport First Lien Loan Fund III LP) | (5) |  | (57) | 442 | 7231 |  | 1383 | 5848 |
| GFG Group, LLC. | 9.00% |  |  |  | Secured Debt | (5) |  | (34) | 1248 | 12545 | 34 | 1234 | 11345 |
|  |  |  |  |  | Preferred Member Units | (5) |  | 150 | 577 | 6990 | 150 |  | 7140 |
| Hawk Ridge Systems, LLC | 10.13% | L+ | 6.00% |  | Secured Debt | (9) |  | 3 | 230 | 2585 | 600 |  | 3185 |
|  | 9.00% |  |  |  | Secured Debt | (9) |  | (13) | 3054 | 34800 | 3013 | 13 | 37800 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 2780 | 803 | 14680 | 2780 |  | 17460 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
|  |  |  |  |  | Preferred Member Units | (9) |  | 150 |  | 770 | 150 |  | 920 |
| Houston Plating and Coatings, LLC | 8.00% |  |  |  | Unsecured Convertible Debt | (8) |  | 40 | 243 | 2960 | 40 |  | 3000 |
|  |  |  |  |  | Member Units | (8) |  | (810) | 17 | 3210 |  | 810 | 2400 |
| HPEP 3, L.P. |  |  |  |  | LP Interests (HPEP 3, L.P.) | (8) | 779 | 254 | (48) | 4712 | 1033 | 1414 | 4331 |
|  |  |  |  |  | LP Interests (HPEP 4, L.P.) | (8) |  |  |  |  | 2332 |  | 2332 |
|  |  |  |  |  | LP Interests (423 COR, LP) | (8) |  |  |  |  | 1400 |  | 1400 |
| I-45 SLF LLC |  |  |  |  | Member Units (Fully diluted 20.0%; 21.75% profits interest) | (8) |  | (2629) | 2028 | 14387 |  | 2629 | 11758 |
| Iron-Main Investments, LLC | 12.50% |  |  |  | Secured Debt | (5) |  |  | 591 | 4557 | 10 | 67 | 4500 |
|  | 12.50% |  |  |  | Secured Debt | (5) |  |  | 411 | 3170 | 7 | 47 | 3130 |
|  | 12.50% |  |  |  | Secured Debt | (5) |  |  | 1134 | 8944 |  |  | 8944 |
|  | 12.50% |  |  |  | Secured Debt | (5) |  |  | 2572 | 19805 | 42 | 288 | 19559 |
|  |  |  |  |  | Common Stock | (5) |  |  |  | 1798 |  |  | 1798 |
| L.F. Manufacturing Holdings, LLC |  |  |  | 14.00% | Preferred Member Units (non-voting) | (8) |  |  | 9 | 107 | 10 | 117 |  |
|  |  |  |  |  | Member Units | (8) | 617 | (541) | 224 | 2560 | 617 | 3177 |  |
| OnAsset Intelligence, Inc. | 12.00% |  |  | 12.00% | Secured Debt | (8) |  | (395) | 28 | 935 | 28 | 394 | 569 |
|  | 12.00% |  |  | 12.00% | Secured Debt | (8) |  | (403) | 29 | 954 | 29 | 403 | 580 |
|  | 12.00% |  |  | 12.00% | Secured Debt | (8) |  | (867) | 62 | 2055 | 62 | 868 | 1249 |
|  | 12.00% |  |  | 12.00% | Secured Debt | (8) |  | (1809) | 129 | 4285 | 129 | 1808 | 2606 |
|  | 10.00% |  |  | 10.00% | Unsecured Debt | (8) |  |  | 5 | 192 | 113 |  | 305 |
|  | 7.00% |  |  | 7.00% | Preferred Stock | (8) |  |  |  |  |  |  |  |
|  |  |  |  |  | Common Stock | (8) |  |  |  |  |  |  |  |
|  |  |  |  |  | Warrants | (8) |  |  |  |  |  |  |  |
| Oneliance, LLC |  | L+ | 11.00% |  | Secured Debt | (7) |  |  |  |  |  |  |  |
|  | 15.13% | L+ | 11.00% |  | Secured Debt | (7) |  |  | 750 | 5547 | 12 |  | 5559 |
|  |  |  |  |  | Preferred Stock | (7) |  |  | 2 | 1056 |  |  | 1056 |
| Rocaceia, LLC (Quality Lease and Rental Holdings, LLC) | 12.00% |  |  |  | Secured Debt | (8) | (86) |  |  |  |  |  |  |
|  |  |  |  |  | Preferred Member Units | (8) |  |  |  |  |  |  |  |
| SI East, LLC (Stavig) |  |  |  |  | Secured Debt | (7) |  |  | 237 | 2250 | 3750 | 6000 |  |
|  | 9.50% |  |  |  | Secured Debt | (7) |  | (34) | 8409 | 63600 | 31159 | 4973 | 89786 |
|  |  |  |  |  | Preferred Member Units | (7) |  | 2080 | 647 | 11570 | 2080 |  | 13650 |
| Slick Innovations, LLC | 14.00% |  |  |  | Secured Debt | (6) |  | 70 | 936 | 5320 | 10080 | 1560 | 13840 |
|  |  |  |  |  | Common Stock | (6) |  | 264 | 456 | 1510 | 264 | 244 | 1530 |
|  |  |  |  |  | Warrants | (6) | 1219 | (219) |  | 400 | 1219 | 1619 |  |
| Sonic Systems International, LLC | 11.24% | L+ | 7.50% |  | Secured Debt | (8) |  | 242 | 1434 | 11757 | 4012 |  | 15769 |
|  |  |  |  |  | Common Stock | (8) |  | (76) | 43 | 1070 | 286 | 76 | 1280 |
| Student Resource Center, LLC | 13.27% | L+ | 8.50% |  | Secured Debt | (6) |  |  |  |  | 4556 |  | 4556 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1) (10) (11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2021 Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2022 Fair Value (13)** |
|  |  |  |  |  | Secured Debt | (6) | (5991) | 4000 | 6 | 10839 | 5877 | 16716 |  |
|  |  |  |  |  | Preferred Equity | (6) |  |  |  |  |  |  |  |
| Superior Rigging & Erecting Co. | 12.00% |  |  |  | Secured Debt | (7) |  |  | 2662 | 21332 | 46 |  | 21378 |
|  |  |  |  |  | Preferred Member Units | (7) |  |  |  | 4500 |  |  | 4500 |
| The Affiliati Network, LLC | 13.00% |  |  |  | Secured Debt | (9) |  |  | 32 | 262 | 3764 | 3920 | 106 |
|  | 13.00% |  |  |  | Secured Debt | (9) |  |  | 1520 | 12834 | 48 | 3440 | 9442 |
|  |  |  |  |  | Preferred Stock | (9) |  |  | 403 | 6400 |  |  | 6400 |
| UnionRock Energy Fund II, LP |  |  |  |  | LP Interests | (9) |  | (174) | 596 | 6123 | 2491 | 2759 | 5855 |
| UniTek Global Services, Inc. | 10.76% | SF+ | 5.50% | 2.00% | Secured Debt | (6) |  | 3 | 40 | 371 | 11 |  | 382 |
|  | 10.76% | SF+ | 5.50% | 2.00% | Secured Debt | (6) |  | 26 | 201 | 1852 | 72 | 212 | 1712 |
|  | 15.00% |  |  | 15.00% | Secured Convertible Debt | (6) |  | 1011 | 269 | 2375 | 2217 |  | 4592 |
|  | 20.00% |  |  | 20.00% | Preferred Stock | (6) |  | (384) | 384 | 2832 | 385 | 384 | 2833 |
|  | 20.00% |  |  | 20.00% | Preferred Stock | (6) |  | 493 |  | 1498 | 493 |  | 1991 |
|  | 19.00% |  |  | 19.00% | Preferred Stock | (6) |  |  |  |  |  |  |  |
|  | 13.50% |  |  | 13.50% | Preferred Stock | (6) |  |  |  |  |  |  |  |
|  |  |  |  |  | Common Stock | (6) |  |  |  |  |  |  |  |
| Universal Wellhead Services Holdings, LLC | 14.00% |  |  | 14.00% | Preferred Member Units | (8) |  | 220 |  |  | 220 |  | 220 |
|  |  |  |  |  | Member Units | (8) |  |  |  |  |  |  |  |
| Volusion, LLC | 11.50% |  |  |  | Secured Debt | (8) |  | (1821) | 1982 | 17434 |  | 2520 | 14914 |
|  | 8.00% |  |  |  | Unsecured Convertible Debt | (8) | (143) | (409) | 33 | 409 |  | 409 |  |
|  |  |  |  |  | Preferred Member Units | (8) |  | (5990) | 3 | 5990 |  | 5990 |  |
|  |  |  |  |  | Warrants | (8) |  |  |  |  |  |  |  |
| World Micro Holdings, LLC | 13.00% |  |  |  | Secured Debt | (7) |  |  | 248 |  | 14140 |  | 14140 |
|  |  |  |  |  | Preferred Equity | (7) |  |  |  |  | 3845 |  | 3845 |
| **Other** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Amounts related to investments transferred to or from other 1940 Act classification during the period** |  |  |  |  |  |  |  | (3538) | (1491) | (15962) | 10853 | 10853 |  |
| **Total Affiliate investments** |  |  |  |  |  |  | $(3319) | $10314 | $54963 | $549214 | $157996 | $104813 | $618359 |

---

______________________

(1)The principal amount, the ownership detail for equity investments and if the investment is income producing is included in the Consolidated Schedule of Investments included in *Item 8. Consolidated Financial Statements* of this Annual Report on Form 10-K.

(2)Represents the total amount of interest, fees and dividends credited to income for the portion of the period for which an investment was included in Control or Affiliate categories, respectively. For investments transferred between Control and Affiliate categories during the period, any income or investment balances related to the time period it was in the category other than the one shown at period end is included in "Amounts related to investments transferred from other 1940 Act classifications during the period."

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2022**

**(dollars in thousands)**

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and accrued PIK interest, and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in net unrealized depreciation as well as the movement of an existing portfolio company into this category and out of a different category.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases in net unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.

(5)Portfolio company located in the Midwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $346,535. This represented 21.7% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $67,491. This represented 12.2% of net assets as of December 31, 2022.

(6)Portfolio company located in the Northeast region and Canada as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $144,681. This represented 9.0% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $105,372. This represented 19.1% of net assets as of December 31, 2022.

(7)Portfolio company located in the Southeast region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $16,360. This represented 1.0% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $196,507. This represented 35.6% of net assets as of December 31, 2022.

(8)Portfolio company located in the Southwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $593,513. This represented 37.1% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $99,261. This represented 18.0% of net assets as of December 31, 2022.

(9)Portfolio company located in the West region as determined by location of the corporate headquarters. The fair value as of December 31, 2022 for control investments located in this region was $498,340. This represented 31.2% of net assets as of December 31, 2022. The fair value as of December 31, 2022 for affiliate investments located in this region was $83,950. This represented 15.2% of net assets as of December 31, 2022.

(10)All of the Company's portfolio investments are generally subject to restrictions on resale as "restricted securities," unless otherwise noted.

(11)This schedule should be read in conjunction with the Consolidated Schedule of Investments and Notes to the Consolidated Financial Statements included in *Item 8. Consolidated Financial Statements* of this Annual Report on Form 10-K. Supplemental information can be located within the Consolidated Schedule of Investments including end of period interest rate, preferred dividend rate, maturity date, investments not paid currently in cash and investments whose value was determined using significant unobservable inputs.

(12)Investment has an unfunded commitment as of December 31, 2022 (see *Note K — Commitments and Contingencies* in *Item 8. Consolidated Financial Statements* of this Annual Report on Form 10-K). The fair value of the investment includes the impact of the fair value of any unfunded commitments.

(13)Negative fair value is the result of the capitalized discount being greater than the principal amount outstanding on the loan.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
| **<u>Majority-owned investments</u>** | | | | | | | | | | | | | |
| ASK (Analytical Systems Keco Holdings, LLC) | 12.00% | L+ | 10.00% |  | Secured Debt | (8) | $— | $— | $691 | $4873 | $153 | $290 | $4736 |
|  |  |  |  |  | Preferred Member Units | (8) |  | (733) |  | 3200 | 4894 | 3200 | 4894 |
|  |  |  |  |  | Warrants | (8) |  | (10) |  | 10 |  | 10 |  |
| Brewer Crane Holdings, LLC | 11.00% | L+ | 10.00% |  | Secured Debt | (9) |  |  | 940 | 8513 | 20 | 496 | 8037 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 1860 | 927 | 5850 | 1860 |  | 7710 |
| Café Brazil, LLC |  |  |  |  | Member Units | (8) |  | 540 | 1012 | 2030 | 540 |  | 2570 |
| California Splendor Holdings LLC | 11.00% | L+ | 10.00% |  | Secured Debt | (9) |  | 36 | 3381 | 35833 | 211 | 8129 | 27915 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 7034 | 1505 | 14496 | 8289 |  | 22785 |
| Clad-Rex Steel, LLC | 10.00% |  |  |  | Secured Debt | (5) |  |  | 110 | 1100 |  | 29 | 1071 |
|  | 10.50% | L+ | 9.50% |  | Secured Debt | (5) |  |  | 1167 | 10853 | (52) | 400 | 10401 |
|  |  |  |  |  | Member Units | (5) |  | 1640 | 2391 | 9140 | 1640 |  | 10780 |
| CMS Minerals Investments |  |  |  |  | Member Units | (9) |  | 691 | 50 | 1624 | 691 | 341 | 1974 |
| Cody Pools, Inc. | 12.25% | L+ | 10.50% |  | Secured Debt | (8) |  | 242 | 2357 | 14216 | 32737 | 4469 | 42484 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 32700 | 3100 | 14940 | 32700 |  | 47640 |
| CompareNetworks Topco, LLC | 10.00% | L+ | 9.00% |  | Secured Debt | (9) |  | (18) | 777 | 7954 | 18 | 1495 | 6477 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 5220 | 474 | 6780 | 5220 |  | 12000 |
| Datacom, LLC | 5.00% |  |  |  | Secured Debt | (8) |  | (628) | 793 |  | 8404 | 736 | 7668 |
|  | 8.00% |  |  |  | Secured Debt | (8) | (3601) | 2130 | 1 | 12146 | 2130 | 14276 |  |
|  |  |  |  |  | Preferred Member Units | (8) | (7324) | 7324 |  |  | 9934 | 7324 | 2610 |
| Direct Marketing Solutions, Inc. | 12.00% | L+ | 11.00% |  | Secured Debt | (9) |  | 137 | 2034 | 15006 | 9512 | 470 | 24048 |
|  |  |  |  |  | Preferred Stock | (9) |  | (1030) | 672 | 19380 |  | 1030 | 18350 |
| Gamber-Johnson Holdings, LLC | 9.50% | L+ | 7.50% |  | Secured Debt | (5) |  | 32 | 2019 | 19838 | 1761 | 1 | 21598 |
|  |  |  |  |  | Member Units | (5) |  | (5638) | 3921 | 52490 | 2848 | 5638 | 49700 |
| GRT Rubber Technologies LLC | 8.10% | L+ | 8.00% |  | Secured Debt | (8) |  | 213 | 1786 | 16775 | 22110 |  | 38885 |
|  |  |  |  |  | Member Units | (8) |  | 1290 | 4264 | 44900 | 1290 |  | 46190 |
| Jensen Jewelers of Idaho, LLC | 10.00% | P+ | 6.75% |  | Secured Debt | (9) |  | (13) | 313 | 3400 | 13 | 863 | 2550 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
|  | 10.00% | P+ | 6.75% |  | Secured Debt | (9) |  |  | 3 |  |  |  |  |
|  |  |  |  |  | Member Units | (9) |  | 4800 | 1937 | 7620 | 4800 |  | 12420 |
| Kickhaefer Manufacturing Company, LLC | 11.50% |  |  |  | Secured Debt | (5) |  |  | 2526 | 22269 | 55 | 2000 | 20324 |
|  | 9.00% |  |  |  | Secured Debt | (5) |  |  | 354 | 3909 |  | 33 | 3876 |
|  |  |  |  |  | Member Units | (5) |  | 1370 | 92 | 13400 | 1370 |  | 14770 |
| Market Force Information, LLC | 12.00% | L+ | 11.00% |  | Secured Debt | (9) |  |  | 387 | 1600 | 1800 |  | 3400 |
|  | 12.00% |  |  | 12.00% | Secured Debt | (9) |  | (4626) |  | 13562 |  | 4626 | 8936 |
| MH Corbin Holding LLC | 13.00% |  |  |  | Secured Debt | (5) |  | (2059) | 1137 | 8280 | 34 | 2380 | 5934 |
|  |  |  |  |  | Preferred Member Units | (5) |  | (2370) |  | 2370 |  | 2370 |  |
| MSC Adviser I, LLC |  |  |  |  | Member Units | (8) |  | 23638 | 6216 | 116760 | 23640 |  | 140400 |
| Mystic Logistics Holdings, LLC | 12.00% |  |  |  | Secured Debt | (6) |  | 1 | 820 | 6723 | 10 | 355 | 6378 |
|  |  |  |  |  | Common Stock | (6) |  | (150) | 1271 | 8990 |  | 150 | 8840 |
| OMi Holdings, Inc. | 12.00% |  |  |  | Secured Debt | (8) |  | 169 | 1109 |  | 18000 |  | 18000 |
|  |  |  |  |  | Preferred Member Units | (8) |  | (170) | 1578 | 20380 |  | 170 | 20210 |
| PPL RVs, Inc. | 7.50% | L+ | 7.00% |  | Secured Debt | (8) |  | (25) | 957 | 11806 | 801 | 225 | 12382 |
|  |  |  |  |  | Common Stock | (8) |  | 2860 | 555 | 11500 | 2860 |  | 14360 |
| Principle Environmental, LLC | 13.00% |  |  |  | Secured Debt | (8) |  | (62) | 929 | 6397 | 2938 | 2062 | 7273 |
|  |  |  |  |  | Common Stock | (8) |  | (490) |  |  | 1200 | 490 | 710 |
|  |  |  |  |  | Preferred Member Units | (8) |  | (449) |  | 10500 | 1109 | 449 | 11160 |
|  |  |  |  |  | Warrants | (8) |  | 330 |  | 870 | 330 | 1200 |  |
| Quality Lease Service, LLC |  |  |  |  | Member Units | (7) |  | (461) |  | 4460 |  | 2312 | 2148 |
| Robbins Bros. Jewelry, Inc. | 12.00% | L+ | 11.00% |  | Secured Debt | (9) |  |  | 621 |  | 35956 |  | 35956 |
|  |  |  |  |  | Preferred Equity | (9) |  |  |  |  | 11070 |  | 11070 |
| Trantech Radiator Topco, LLC | 12.00% |  |  |  | Secured Debt | (7) |  | 49 | 1084 | 8644 | 68 |  | 8712 |
|  |  |  |  |  | Common Stock | (7) |  | 2630 | 116 | 6030 | 2630 |  | 8660 |
| Ziegler's NYPD, LLC | 12.00% |  |  |  | Secured Debt | (8) |  |  | 76 | 625 |  |  | 625 |
|  | 14.00% |  |  |  | Secured Debt | (8) |  |  | 390 | 2750 |  |  | 2750 |
|  | 6.50% |  |  |  | Secured Debt | (8) |  | 21 | 66 | 979 | 21 |  | 1000 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 350 |  | 1780 | 350 |  | 2130 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
| **<u>Other controlled investments</u>** | | | | | | | | | | | | | |
| 2717 MH, L.P. |  |  |  |  | LP Interests (2717 HPP-MS, L.P.) | (8) |  |  |  | 250 |  | 250 |  |
|  |  |  |  |  | LP Interests (2717 MH, L.P.) | (8) |  | 1165 |  | 2702 | 1269 |  | 3971 |
| ASC Interests, LLC | 13.00% |  |  |  | Secured Debt | (8) |  |  | 261 | 1715 | 121 |  | 1836 |
|  |  |  |  |  | Member Units | (8) |  | (400) |  | 1120 |  | 400 | 720 |
| ATS Workholding, LLC | 5.00% |  |  |  | Secured Debt | (9) |  | (154) |  | 3347 |  | 342 | 3005 |
| Barfly Ventures, LLC | 7.00% |  |  |  | Secured Debt | (5) |  |  | 49 | 343 | 367 |  | 710 |
|  |  |  |  |  | Member Units | (5) |  | 346 |  | 1584 | 346 |  | 1930 |
| Bolder Panther Group, LLC | 10.50% | L+ | 9.00% |  | Secured Debt | (9) |  | 313 | 3686 | 27225 | 12275 | 500 | 39000 |
|  |  |  |  |  | Class A Preferred Member Units | (9) |  |  | 1427 | 10194 |  |  | 10194 |
|  |  |  |  |  | Class B Preferred Member Units | (9) |  | 9170 | 3100 | 14000 | 9170 |  | 23170 |
| Bond-Coat, Inc. |  |  |  |  | Common Stock | (8) | (2320) | 4310 |  | 2040 | 4310 | 6350 |  |
| Bridge Capital Solutions Corporation | 13.00% |  |  |  | Preferred Member Units | (6) |  |  | 1705 | 9401 | 412 |  | 9813 |
|  |  |  |  |  | Preferred Member Units | (6) |  |  | 100 | 1000 |  |  | 1000 |
|  |  |  |  |  | Warrants | (6) |  | 840 |  | 3220 | 840 |  | 4060 |
| CBT Nuggets, LLC |  |  |  |  | Member Units | (9) |  | 4540 | 2308 | 46080 | 4540 |  | 50620 |
| Centre Technologies Holdings, LLC | 12.00% | L+ | 10.00% |  | Secured Debt | (8) |  | (507) | 1266 | 11549 | 33 | 2718 | 8864 |
|  |  |  |  |  | Preferred Member Units | (8) |  | (320) | 120 | 6160 |  | 320 | 5840 |
| Chamberlin Holding LLC | 9.00% | L+ | 8.00% |  | Secured Debt | (8) |  | 2 | 1544 | 15212 | 4001 | 1396 | 17817 |
|  |  |  |  |  | Member Units | (8) |  | (3660) | 3922 | 29340 | 270 | 3930 | 25680 |
| Charps, LLC | 10.00% |  |  |  | Unsecured Debt | (5) |  | 260 | 1007 | 8475 | 559 | 3340 | 5694 |
|  | 15.00% |  |  |  | Secured Debt | (5) |  |  | 4 | 669 |  | 669 |  |
|  |  |  |  |  | Preferred Member Units | (5) |  | 1907 | 4839 | 10520 | 3470 |  | 13990 |
| Colonial Electric Company LLC | 12.00% |  |  |  | Secured Debt | (6) |  |  | 2705 |  | 24981 | 630 | 24351 |
|  |  |  |  |  | Preferred Member Units | (6) |  | 1450 | 1480 |  | 9130 |  | 9130 |
| Copper Trail Energy Fund I, LP - CTMH |  |  |  |  | LP Interests (CTMH, LP) | (9) |  |  |  | 747 |  | 37 | 710 |
| Digital Products Holdings LLC | 11.00% | L+ | 10.00% |  | Secured Debt | (5) |  |  | 1978 | 18077 | 44 | 1320 | 16801 |
|  |  |  |  |  | Preferred Member Units | (5) |  |  | 200 | 9835 |  |  | 9835 |
| Garreco, LLC | 9.00% | L+ | 8.00% |  | Secured Debt | (8) |  |  | 405 | 4519 |  | 323 | 4196 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
|  |  |  |  |  | Member Units | (8) |  | 860 | 300 | 1410 | 860 |  | 2270 |
| Gulf Manufacturing, LLC |  |  |  |  | Member Units | (8) |  | 1130 | 2109 | 4510 | 1130 |  | 5640 |
| Gulf Publishing Holdings, LLC | 10.50% | L+ | 9.50% |  | Secured Debt | (8) |  |  | 21 | 250 | 14 | 7 | 257 |
|  | 12.50% |  |  | 6.25% | Secured Debt | (8) |  | (2757) | 1282 | 12044 | 849 | 3176 | 9717 |
| Harrison Hydra-Gen, Ltd. |  |  |  |  | Common Stock | (8) |  | (1920) |  | 5450 |  | 1920 | 3530 |
| J&J Services, Inc. | 11.50% |  |  |  | Secured Debt | (7) |  | (103) | 1264 | 12800 | 103 | 12903 |  |
|  |  |  |  |  | Preferred Stock | (7) | 10952 | (5595) |  | 12680 |  | 12680 |  |
| Johnson Downie Opco, LLC | 13.00% | L+ | 11.50% |  | Secured Debt | (8) |  |  | 208 |  | 11344 |  | 11344 |
|  |  |  |  |  | Preferred Equity | (8) |  |  |  |  | 3150 |  | 3150 |
| KBK Industries, LLC |  |  |  |  | Member Units | (5) |  | 420 | 992 | 13200 | 420 |  | 13620 |
| MS Private Loan Fund | 5.00% |  |  |  | Unsecured Debt | (8) |  |  | 1402 |  | 66726 | 3575 | 63151 |
|  |  |  |  |  | LP Interests | (8) |  | 81 |  |  | 2581 |  | 2581 |
| MSC Income Fund Inc. | 5.00% |  |  |  | Unsecured Debt | (8) |  |  | 2179 |  | 60000 | 60000 |  |
| NAPCO Precast, LLC |  |  |  |  | Member Units | (8) |  | (2540) | 1553 | 16100 |  | 2540 | 13560 |
| Nebraska Vet AcquireCo, LLC (NVS) | 12.00% |  |  |  | Secured Debt | (5) |  |  | 1466 | 10395 | 4846 |  | 15241 |
|  |  |  |  |  | Preferred Member Units | (5) |  | 713 |  | 6500 | 1200 |  | 7700 |
| NexRev LLC | 11.00% |  |  |  | Secured Debt | (8) |  | (1839) | 1883 | 16727 | 38 | 2720 | 14045 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 1220 | 80 | 1470 | 1220 |  | 2690 |
| NRI Clinical Research, LLC | 9.00% |  |  |  | Secured Debt | (9) |  | (48) | 380 | 5620 | 48 | 5668 |  |
|  |  |  |  |  | Member Units | (9) | 8787 | (4835) | 2805 | 5600 | (749) | 4851 |  |
|  |  |  |  |  | Warrants | (9) |  | (1238) |  | 1490 |  | 1490 |  |
| NRP Jones, LLC | 12.00% |  |  |  | Secured Debt | (5) |  |  | 253 | 2080 |  |  | 2080 |
|  |  |  |  |  | Member Units | (5) |  | 3619 | (45) | 2821 | 3619 |  | 6440 |
| NuStep, LLC | 11.00% |  |  |  | Secured Debt | (5) |  | 4 | 1991 | 17193 | 47 |  | 17240 |
|  | 7.50% | L+ | 6.50% |  | Secured Debt | (5) |  |  | 58 |  | 2120 | 400 | 1720 |
|  |  |  |  |  | Preferred Member Units | (5) |  | 2720 |  | 10780 | 2720 |  | 13500 |
| Orttech Holdings, LLC | 12.00% | L+ | 11.00% |  | Secured Debt | (5) |  |  | 1522 |  | 24151 |  | 24151 |
|  |  |  |  |  | Preferred Stock | (5) |  |  | 130 |  | 12600 | 2600 | 10000 |
| Pearl Meyer Topco LLC | 12.00% |  |  |  | Secured Debt | (6) |  | 236 | 4259 | 37201 | 311 | 4838 | 32674 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
|  |  |  |  |  | Member Units | (6) |  | 11030 | 3599 | 15940 | 11030 |  | 26970 |
| Pegasus Research Group, LLC |  |  |  |  | Member Units | (8) |  | (1550) |  | 8830 |  | 1550 | 7280 |
| River Aggregates, LLC |  |  |  |  | Member Units | (8) |  | 40 | 125 | 3240 | 40 |  | 3280 |
| Tedder Industries, LLC | 12.00% |  |  |  | Secured Debt | (9) |  |  | 2009 | 16301 | 2280 | 2400 | 16181 |
|  |  |  |  |  | Preferred Member Units | (9) |  |  |  | 8136 | 443 |  | 8579 |
| UnionRock Energy Fund II, LP |  |  |  |  | LP Interests | (9) |  | 2295 | 273 | 2894 | 3669 | 440 | 6123 |
| Vision Interests, Inc. | 13.00% |  |  |  | Secured Debt | (9) |  |  | 244 | 2028 |  | 2028 |  |
|  |  |  |  |  | Series A Preferred Stock | (9) |  | (160) |  | 3160 |  | 160 | 3000 |
| VVS Holdco LLC | 11.50% |  |  |  | Secured Debt | (5) |  |  | 913 |  | 30100 |  | 30100 |
|  | 7.00% | L+ | 6.00% |  | Secured Debt | (5) |  |  | 7 |  | 1169 |  | 1169 |
|  |  |  |  |  | Preferred Equity | (5) |  |  |  |  | 11840 |  | 11840 |
| **Other** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Amounts related to investments transferred to or from other 1940 Act classification during the period** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Total Control investments** |  |  |  |  |  |  | $6494 | $99420 | $122277 | $1113725 | $592022 | $216490 | $1489257 |
| **<u>Affiliate Investments</u>** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| AAC Holdings, Inc. | 18.00% |  |  | 8.00% | Secured Debt | (7) |  | (217) | 1817 | 9187 | 1095 | 488 | 9794 |
|  |  |  |  |  | Common Stock | (7) | $— | $(1069) | $— | $3148 | $— | $1069 | $2079 |
|  |  |  |  |  | Warrants | (7) |  | (998) |  | 2938 |  | 998 | 1940 |
| AFG Capital Group, LLC | 10.00% |  |  |  | Secured Debt | (8) |  |  | 31 | 491 |  | 347 | 144 |
|  |  |  |  |  | Preferred Member Units | (8) |  | 1930 | 200 | 5810 | 1930 |  | 7740 |
| ATX Networks Corp. | 10.00% |  |  | 10.00% | Unsecured Debt | (6) |  |  |  |  | 1963 |  | 1963 |
|  | 8.50% | L+ | 7.50% |  | Secured Debt | (6) |  |  | 168 |  | 7092 |  | 7092 |
|  | 8.75% | L+ | 6.25% | 1.50% | Secured Debt | (6) | (4528) | 1133 |  | 12263 | 1521 | 13784 |  |
| BBB Tank Services, LLC | 12.00% | L+ | 11.00% |  | Unsecured Debt | (8) |  | (2242) | 612 | 4722 | 27 | 2242 | 2507 |
|  |  |  |  |  | Member Units | (8) |  | (280) |  | 280 |  | 280 |  |
|  |  |  |  |  | Preferred Stock (non-voting) | (8) |  | (162) | 11 | 151 | 11 | 162 |  |
| Boccella Precast Products LLC | 10.00% |  |  |  | Secured Debt | (6) |  |  | 9 |  | 320 |  | 320 |
|  |  |  |  |  | Member Units | (6) |  | (1210) | 398 | 6040 |  | 1210 | 4830 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
| Brightwood Capital Fund Investments - Fund V |  |  |  |  | LP Interests (Brightwood Capital Fund V, LP) | (6) |  |  |  |  | 1000 |  | 1000 |
| Buca C, LLC | 10.25% | L+ | 9.25% |  | Secured Debt | (7) |  | (373) | 1782 | 14256 | 487 | 373 | 14370 |
| CAI Software LLC | 12.50% |  |  |  | Secured Debt | (6) |  | (340) | 7570 | 47474 | 23940 | 71414 |  |
|  |  |  |  |  | Member Units | (6) | 10252 | (5095) | 2380 | 7190 |  | 7190 |  |
| Career Team Holdings, LLC | 12.50% |  |  |  | Secured Debt | (6) |  |  | 513 |  | 20050 |  | 20050 |
|  |  |  |  |  | Class A Common Units | (6) |  |  |  |  | 4500 |  | 4500 |
| Chandler Signs Holdings, LLC |  |  |  |  | Class A Units | (8) |  | (1000) |  | 1460 |  | 1000 | 460 |
| Charlotte Russe, Inc |  |  |  |  | Common Stock | (9) | (3141) | 3141 |  |  | 3141 | 3141 |  |
| Classic H&G Holdings, LLC | 7.00% | L+ | 6.00% |  | Secured Debt | (6) |  |  | 83 |  | 4000 |  | 4000 |
|  | 8.00% |  |  |  | Secured Debt | (6) |  | (82) | 2210 | 24800 | 82 | 5608 | 19274 |
|  |  |  |  |  | Preferred Member Units | (6) |  | 5750 | 1070 | 9510 | 5750 |  | 15260 |
| Congruent Credit Opportunities Funds |  |  |  |  | LP Interests (Congruent Credit Opportunities Fund III, LP) | (8) |  | (96) | 776 | 11540 |  | 1581 | 9959 |
|  |  |  |  |  | LP Interests (Congruent Credit Opportunities Fund II, LP) | (8) | (4449) | 4355 |  | 94 | 4355 | 4449 |  |
| Copper Trail Energy Fund I, LP |  |  |  |  | LP Interests (Copper Trail Energy Fund I, LP) | (9) | (203) | 379 | 378 | 1782 | 379 | 2161 |  |
| DMA Industries, LLC | 12.00% |  |  |  | Secured Debt | (7) |  |  | 521 |  | 20993 |  | 20993 |
|  |  |  |  |  | Preferred Equity | (7) |  |  |  |  | 5944 |  | 5944 |
| Dos Rios Partners |  |  |  |  | LP Interests (Dos Rios Partners - A, LP) | (8) | 715 | 1560 |  | 1720 | 1560 |  | 3280 |
|  |  |  |  |  | LP Interests (Dos Rios Partners, LP) | (8) | 2252 | 4912 |  | 5417 | 4912 |  | 10329 |
| Dos Rios Stone Products LLC |  |  |  |  | Class A Preferred Units | (8) |  | (610) |  | 1250 |  | 610 | 640 |
| East Teak Fine Hardwoods, Inc. |  |  |  |  | Common Stock | (7) | (80) | 180 | 100 | 300 | 180 | 480 |  |
| EIG Fund Investments |  |  |  |  | LP Interests (EIG Global Private Debt Fund-A, L.P.) | (8) | 9 | 166 | 53 | 526 | 200 | 179 | 547 |
| Flame King Holdings, LLC | 12.00% | L+ | 11.00% |  | Secured Debt | (9) |  |  | 884 |  | 20996 |  | 20996 |
|  | 7.50% | L+ | 6.50% |  | Secured Debt | (9) |  |  | 77 |  | 6324 |  | 6324 |
|  |  |  |  |  | Preferred Equity | (9) |  |  |  |  | 10400 |  | 10400 |
| Freeport Financial SBIC Fund LP |  |  |  |  | LP Interests (Freeport Financial SBIC Fund LP) | (5) |  | 814 |  | 5264 | 814 |  | 6078 |
|  |  |  |  |  | LP Interests (Freeport First Lien Loan Fund III LP) | (5) |  | 66 | 751 | 10321 | 66 | 3156 | 7231 |
| GFG Group, LLC. | 12.00% |  |  |  | Secured Debt | (5) |  | 110 | 1601 |  | 15745 | 3200 | 12545 |
|  |  |  |  |  | Preferred Member Units | (5) |  | 2090 | 629 |  | 6990 |  | 6990 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
| Hawk Ridge Systems, LLC | 7.00% | L+ | 6.00% |  | Secured Debt | (9) |  |  | 70 |  | 2585 |  | 2585 |
|  | 8.00% |  |  |  | Secured Debt | (9) |  | 94 | 2023 | 18400 | 16400 |  | 34800 |
|  |  |  |  |  | Preferred Member Units | (9) |  | 7000 | 1914 | 8450 | 7000 |  | 15450 |
| Houston Plating and Coatings, LLC | 8.00% |  |  |  | Unsecured Convertible Debt | (8) |  | 60 | 243 | 2900 | 60 |  | 2960 |
|  |  |  |  |  | Member Units | (8) |  | (1870) | 261 | 5080 |  | 1870 | 3210 |
| HPEP 3, L.P. |  |  |  |  | LP Interests (HPEP 3, L.P.) | (8) |  | 1332 | 177 | 3258 | 1706 | 252 | 4712 |
| I-45 SLF LLC |  |  |  |  | Member Units (Fully diluted 20.0%; 24.40% profits interest) | (8) |  | (202) | 1861 | 15789 | 800 | 2202 | 14387 |
| Iron-Main Investments, LLC | 12.50% |  |  |  | Secured Debt | (5) |  |  | 201 |  | 3170 |  | 3170 |
|  | 12.50% |  |  | 12.50% | Secured Debt | (5) |  |  | 408 |  | 9088 | 144 | 8944 |
|  | 12.50% |  |  |  | Secured Debt | (5) |  |  | 731 |  | 19805 |  | 19805 |
|  | 13.00% |  |  |  | Secured Debt | (5) |  |  | 346 |  | 4557 |  | 4557 |
|  |  |  |  |  | Common Stock | (5) |  |  |  |  | 1798 |  | 1798 |
| L.F. Manufacturing Holdings, LLC |  |  |  |  | Member Units | (8) |  | 510 |  | 2050 | 510 |  | 2560 |
|  |  |  |  |  | Preferred Member Units (non-voting) | (8) |  |  | 14 | 93 | 14 |  | 107 |
| Meisler Operating LLC |  |  |  |  | Common Stock | (5) | 17048 | (7413) |  | 16010 | (550) | 15460 |  |
| OnAsset Intelligence, Inc. | 10.00% |  |  | 10.00% | Unsecured Debt | (8) |  |  | 11 | 64 | 139 | 11 | 192 |
|  | 12.00% |  |  | 12.00% | Secured Debt | (8) |  |  | 930 | 7299 | 930 |  | 8229 |
|  |  |  |  |  | Common Stock | (8) |  | (830) |  |  | 830 | 830 |  |
|  |  |  |  |  | Warrants | (8) |  | 830 |  |  | 830 | 830 |  |
| Oneliance, LLC | 12.00% | L+ | 11.00% |  | Secured Debt | (7) |  |  | 335 |  | 5547 |  | 5547 |
|  |  |  |  |  | Preferred Stock | (7) |  |  |  |  | 1056 |  | 1056 |
| PCI Holding Company, Inc. |  |  |  |  | Preferred Stock | (9) |  | (203) | 2852 | 4130 |  | 4130 |  |
| SI East, LLC (Stavig) | 10.25% |  |  |  | Secured Debt | (7) |  | (90) | 4032 | 32962 | 36765 | 3877 | 65850 |
|  |  |  |  |  | Preferred Member Units | (7) |  | 6572 | 2340 | 9780 | 6572 | 4782 | 11570 |
| Slick Innovations, LLC | 13.00% |  |  |  | Secured Debt | (6) |  | (42) | 731 | 5720 | 42 | 442 | 5320 |
|  |  |  |  |  | Common Stock | (6) |  | 180 |  | 1330 | 180 |  | 1510 |
|  |  |  |  |  | Warrants | (6) |  | 40 |  | 360 | 40 |  | 400 |
| Sonic Systems International, LLC | 8.50% | L+ | 7.50% |  | Secured Debt | (8) |  |  | 394 |  | 11757 |  | 11757 |
|  |  |  |  |  | Common Stock | (8) |  |  | 37 |  | 1070 |  | 1070 |
| Superior Rigging & Erecting Co. | 12.00% |  |  |  | Secured Debt | (7) |  |  | 2650 | 21298 | 34 |  | 21332 |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

---

| | | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Company** | **Total Rate** | **Base Rate** | **Spread** | **PIK Rate** | **Type of Investment(1)(10)(11)** | **Geography** | **Amount of<br>Realized<br>Gain/(Loss)** | **Amount of<br>Unrealized<br>Gain/(Loss)** | **Amount of<br>Interest,<br>Fees or<br>Dividends<br>Credited to<br>Income(2)** | **December 31,<br>2020<br>Fair Value** | **Gross<br>Additions(3)** | **Gross<br>Reductions(4)** | **December 31,<br>2021<br>Fair Value** |
|  |  |  |  |  | Preferred Member Units | (7) |  |  |  | 4500 |  |  | 4500 |
| The Affiliati Network, LLC | 11.83% |  |  |  | Secured Debt | (9) |  |  | 842 |  | 13873 | 1039 | 12834 |
|  | 7.00% |  |  |  | Secured Debt | (9) |  |  | 9 |  | 1462 | 1200 | 262 |
|  |  |  |  |  | Preferred Stock | (9) |  |  | 270 |  | 6400 |  | 6400 |
| UniTek Global Services, Inc. | 15.00% |  |  | 15.00% | Secured Convertible Debt | (6) |  | 1178 | 151 |  | 2461 | 86 | 2375 |
|  | 8.50% | L+ | 5.50% | 2.00% | Secured Debt | (6) |  | 115 | 236 | 2425 | 259 | 462 | 2222 |
|  |  |  |  |  | Preferred Stock | (6) |  | 807 | 315 | 3208 | 1439 | 316 | 4331 |
| Volusion, LLC | 11.50% |  |  |  | Secured Debt | (8) |  | 991 | 2248 | 19243 | 991 | 2800 | 17434 |
|  | 8.00% |  |  |  | Unsecured Convertible Debt | (8) |  | 118 | 33 | 291 | 118 |  | 409 |
|  |  |  |  |  | Preferred Member Units | (8) |  |  |  | 5990 |  |  | 5990 |
| **Other** |  |  |  |  |  |  |  |  |  |  |  |  |  |
| **Amounts related to investments transferred to or from other 1940 Act classification during the period** |  |  |  |  |  |  | (694) |  | (11) | (12263) |  |  |  |
| **Total Affiliate investments** |  |  |  |  |  |  | $17181 | $21989 | $51278 | $366301 | $336505 | $165855 | $549214 |

---

______________________

(1)The principal amount, the ownership detail for equity investments and if the investment is income producing is included in the Consolidated Schedule of Investments included in *Item 8. Consolidated Financial Statements* of this Annual Report on Form 10-K.

(2)Represents the total amount of interest, fees and dividends credited to income for the portion of the period for which an investment was included in Control or Affiliate categories, respectively. For investments transferred between Control and Affiliate categories during the period, any income or investment balances related to the time period it was in the category other than the one shown at period end is included in "Amounts from investments transferred from other 1940 Act classifications during the period."

(3)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, follow-on investments and accrued PIK interest, and the exchange of one or more existing securities for one or more new securities. Gross additions also include net increases in unrealized appreciation or net decreases in net unrealized depreciation as well as the movement of an existing portfolio company into this category and out of a different category.

(4)Gross reductions include decreases in the cost basis of investments resulting from principal repayments or sales and the exchange of one or more existing securities for one or more new securities. Gross reductions also include net increases in net unrealized depreciation or net decreases in unrealized appreciation as well as the movement of an existing portfolio company out of this category and into a different category.

(5)Portfolio company located in the Midwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2021 for control investments located in this region was $297,953. This represented 25.9% of net assets as of December 31, 2021. The fair value as of December 31, 2021 for affiliate investments located in this region was $41,535. This represented 13.9% of net assets as of December 31, 2021.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 12-14**

**MAIN STREET CAPITAL CORPORATION**

**Consolidated Schedule of Investments In and Advances to Affiliates (Continued)**

**December 31, 2021**

**(dollars in thousands)**

(6)Portfolio company located in the Northeast region as determined by location of the corporate headquarters. The fair value as of December 31, 2021 for control investments located in this region was $117,017. This represented 10.8% of net assets as of December 31, 2021. The fair value as of December 31, 2021 for affiliate investments located in this region was $144,241. This represented 21.7% of net assets as of December 31, 2021.

(7)Portfolio company located in the Southeast region as determined by location of the corporate headquarters. The fair value as of December 31, 2021 for control investments located in this region was $44,538. This represented 1.2% of net assets as of December 31, 2021. The fair value as of December 31, 2021 for affiliate investments located in this region was $134,602. This represented 40.5% of net assets as of December 31, 2021.

(8)Portfolio company located in the Southwest region as determined by location of the corporate headquarters. The fair value as of December 31, 2021 for control investments located in this region was $573,437. This represented 44.4% of net assets as of December 31, 2021. The fair value as of December 31, 2021 for affiliate investments located in this region was $109,522. This represented 20.5% of net assets as of December 31, 2021.

(9)Portfolio company located in the West region as determined by location of the corporate headquarters. The fair value as of December 31, 2021 for control investments located in this region was $303,273. This represented 37.3% of net assets as of December 31, 2021. The fair value as of December 31, 2021 for affiliate investments located in this region was $55,239. This represented 17.3% of net assets as of December 31, 2021.

(10)All of the Company's portfolio investments are generally subject to restrictions on resale as "restricted securities," unless otherwise noted.

(11)This schedule should be read in conjunction with the Consolidated Schedule of Investments and Notes to the Consolidated Financial Statements included in *Item 8. Consolidated Financial Statements* of this Annual Report on Form 10-K. Supplemental information can be located within the Consolidated Schedule of Investments including end of period interest rate, preferred dividend rate, maturity date, investments not paid currently in cash and investments whose value was determined using significant unobservable inputs.

(12)Investment has an unfunded commitment as of December 31, 2021 (see *Note K — Commitments and Contingencies* in *Item 8. Consolidated Financial Statements* of this Annual Report on Form 10-K). The fair value of the investment includes the impact of the fair value of any unfunded commitments.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

**Item 9. *Changes in and Disagreements with Accountants on Accounting and Financial Disclosure***

Not applicable.

**Item 9A. *Controls and Procedures***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Evaluation of Disclosure Controls and Procedures.* As of the end of the period covered by this annual report on Form 10-K, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer, President, Chief Financial Officer, Chief Compliance Officer and Chief Accounting Officer, of our disclosure controls and procedures (as defined in Rule 13a-15 of the Exchange Act). Based on that evaluation, our Chief Executive Officer, President, Chief Financial Officer, Chief Compliance Officer and Chief Accounting Officer have concluded that our current disclosure controls and procedures are effective in timely alerting them of material information relating to us that is required to be disclosed in the reports we file or submit under the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Management's Report on Internal Control Over Financial Reporting.* The management of Main Street Capital Corporation and its subsidiaries (the Company) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the effectiveness of the Company's internal control over financial reporting based on the criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on the Company's evaluation under the framework in Internal Control — Integrated Framework, management concluded that the Company's internal control over financial reporting was effective as of December 31, 2022. Grant Thornton LLP, the Company's independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company's internal control over financial reporting as of December 31, 2022, as stated in its report which is included herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Attestation Report of the Registered Public Accounting Firm.* Our independent registered public accounting firm, Grant Thornton LLP, has issued an attestation report on the effectiveness of our internal control over financial reporting, which is set forth above in *Reports of Independent Registered Public Accounting Firm* in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Changes in Internal Control over Financial Reporting.* There have been no changes in our internal control over financial reporting that occurred during the fiscal quarter ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**Item 9B. *Other Information***

**Fees and Expenses**

The following table is being provided to update, as of December 31, 2022, certain information in the Company's effective shelf registration statement on Form N-2 (File No. 333-263258) filed with the SEC on March 3, 2022 as supplemented by the prospectus supplements relating to our ATM Program and to the direct stock purchase feature of the Plan. The information is intended to assist you in understanding the costs and expenses that an investor in the Company will bear directly or indirectly. We caution you that some of the percentages indicated in the table below are estimates and may vary. Except where the context suggests otherwise, whenever this Annual Report on Form 10-K contains a reference

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

to fees or expenses paid by "you," "us" or "Main Street," or that "we" will pay fees or expenses, stockholders will indirectly bear such fees or expenses as investors in us.

---

| | | |
|:---|:---|:---|
| ***Stockholder Transaction Expenses:*** | | |
| Sales load (as a percentage of offering price) | —% | (1) |
| Offering expenses (as a percentage of offering price) | —% | (2) |
| Dividend reinvestment and direct stock purchase plan expenses | —% | (3) |
| Total stockholder transaction expenses (as a percentage of offering price) | —% | (4) |
| ***Annual Expenses of the Company (as a percentage of net assets attributable to common stock):*** |  |  |
| Operating expenses | 3.14% | (5) |
| Interest payments on borrowed funds | 4.41% | (6) |
| Income tax expense | 1.11% | (7) |
| Acquired fund fees and expenses | 0.26% | (8) |
| Total annual expenses | 8.92% |  |

---

______________________

(1)The maximum agent commission with respect to the shares of our common stock sold by us in the ATM Program is 1.00%. Purchasers of shares of common stock through the direct stock purchase feature of the Plan will not pay any sales load. In the event that our securities are sold to or through underwriters, a corresponding prospectus or prospectus supplement will disclose the applicable sales load.

(2)Estimated offering expenses payable by us for the estimated duration of the ATM Program are $0.8 million. In the event that we conduct an offering of our securities, a corresponding prospectus or prospectus supplement will disclose the estimated offering expenses.

(3)The expenses of administering the Plan are included in operating expenses. Additional costs may be charged to participants in the direct stock purchase feature of the plan for certain types of transactions.

(4)Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus or prospectus supplement, if any.

(5)Operating expenses in this table represent our estimated expenses.

(6)Interest payments on borrowed funds represent our estimated annual interest payments on borrowed funds based on current debt levels as adjusted for projected increases (but not decreases) in debt levels over the next twelve months.

(7)Income tax expense relates to the accrual of (a) deferred tax provision (benefit) primarily related to loss carryforwards, timing differences in net unrealized appreciation or depreciation and other temporary book-tax differences from our portfolio investments held in Taxable Subsidiaries and (b) excise, state and other taxes. Deferred taxes are non-cash in nature and may vary significantly from period to period. We are required to include deferred taxes in calculating our annual expenses even though deferred taxes are not currently payable or receivable. Due to the variable nature of deferred tax expense, which can be a large portion of the income tax expense, and the difficulty in providing an estimate for future periods, this income tax expense estimate is based upon the actual amount of income tax expense for the year ended December 31, 2022.

(8)Acquired fund fees and expenses represent the estimated indirect expense incurred due to investments in other investment companies and private funds.

*Example*

The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. In calculating the following expense amounts, we have assumed we would have no additional leverage and that our annual operating expenses would

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

remain at the levels set forth in the table above and that you would pay either no sales load or a sales load of up to 1.00% (the commission to be paid by us with respect to common stock sold by us in the ATM Program).

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return and no sales load | $87 | $252 | $404 | $735 |
| You would pay the following expenses on a $1,000 investment, assuming a 5.0% annual return and a 1.00% sales load | $97 | $262 | $414 | $745 |

---

**The example and the expenses in the table above should not be considered a representation of our future expenses, and actual expenses may be greater or less than those shown.** While the example assumes, as required by the SEC, a 5.0% annual return, our performance will vary and may result in a return greater or less than 5.0%. In addition, while the example assumes reinvestment of all dividends at NAV, participants in our dividend reinvestment plan will receive a number of shares of our common stock, determined by dividing the total dollar amount of the dividend payable to a participant by (i) the market price per share of our common stock at the close of trading on a valuation date determined by our Board of Directors for each dividend in the event that we use newly issued shares to satisfy the share requirements of the dividend reinvestment plan or (ii) the average purchase price of all shares of common stock purchased by the plan administrator in the event that shares are purchased in the open market to satisfy the share requirements of the dividend reinvestment plan, which may be at, above or below NAV. See the description in *Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities — Common Stock and Holders* for additional information regarding our dividend reinvestment plan.

**Executive Officers**

On February 21, 2023, our Board appointed Ryan R. Nelson to serve as our Vice President, Chief Accounting Officer and Assistant Treasurer, effective as of March 13, 2023.

Mr. Nelson, age 40, a certified public accountant, is currently our Vice President of Finance and has served in this role since joining Main Street in December 2022. Prior to joining Main Street, Mr. Nelson spent four years with Conn's, Inc. (Nasdaq: CONN), a furniture, mattress, electronics and appliance store chain, where he worked in several leadership roles, including Vice President and Chief Accounting Officer. Prior to joining Conn's, Mr. Nelson spent seven years with EnLink Midstream Partners, a midstream energy services company, where he worked in several leadership roles in their accounting group. Mr. Nelson started his career at KPMG LLP.

There is no arrangement or understanding between Mr. Nelson and any other persons pursuant to which he is being appointed as our Vice President, Chief Accounting Officer and Assistant Treasurer. There are no current or proposed transactions between us and Mr. Nelson or his immediate family members that would require disclosure under Item 404(a) of Regulation S-K promulgated by the SEC.

In connection with the promotion of Mr. Nelson, and in accordance with the transition previously disclosed, Mr. Lance A. Parker's role as the Company's Vice President, Chief Accounting Officer and Assistant Treasurer will cease, effective as of March 13, 2023, while he will continue to assist in the transitioning his duties and responsibilities for a period of time thereafter.

**Item 9C. *Disclosure Regarding Foreign Jurisdictions that Prevent Inspections***

Not applicable.

**PART III**

**Item 10. *Directors, Executive Officers and Corporate Governance***

The information required by this Item will be contained in the definitive proxy statement relating to our 2023 Annual Meeting of Stockholders (the "Proxy Statement") under the headings "Election of Directors," "Corporate Governance" and "Executive Officers" to be filed with the Securities and Exchange Commission on or prior to April 30, 2023, and is incorporated herein by reference.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

We have adopted a code of business conduct and ethics that applies to directors, officers and employees of Main Street. This code of ethics is published on our website at *www.mainstcapital.com*. We intend to disclose any substantive amendments to, or waivers from, this code of conduct within four business days of the waiver or amendment through a website posting.

**Item 11. *Executive Compensation***

The information required by this Item will be contained in the Proxy Statement under the headings "Compensation of Executive Officers," "Compensation of Directors," "Compensation Discussion and Analysis," "Compensation Committee Interlocks and Insider Participation" and "Compensation Committee Report," to be filed with the Securities and Exchange Commission on or prior to April 30, 2023, and is incorporated herein by reference.

**Item 12. *Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters***

The following table provides information regarding our equity compensation plans as of December 31, 2022:

---

| | | | |
|:---|:---|:---|:---|
| **Plan Category** | **Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights** | **Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights** | **Number of securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column)** |
| Equity compensation plans approved by security holders(1) | $— | $— | $5281165 |
| Equity compensation plans not approved by security holders(2) | 165248 |  |  |
| Total | $165248 | $— | $5281165 |

---

______________________

(1)Consists of our Main Street Capital Corporation 2022 Equity and Incentive Plan and our Main Street Capital Corporation 2022 Non-Employee Director Restricted Stock Plan. As of December 31, 2022, we had issued 18,835 shares of restricted stock pursuant to these plans, of which no shares had vested or were forfeited. Pursuant to each of these plans, if any award issued thereunder shall for any reason expire or otherwise terminate or be forfeited, in whole or in part, the shares of stock not acquired under such award shall revert to and again become available for issuance under such plan. For more information regarding these plans, see *Note J — Share-Based Compensation* to the consolidated financial statements included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

(2)Consists of our 2015 Deferred Compensation Plan. For more information regarding this plan, see *Note L — Related Party Transactions* to the consolidated financial statements included in *Item 8. Consolidated Financial Statements and Supplementary Data* of this Annual Report on Form 10-K.

The other information required by this Item will be contained in the Proxy Statement under the heading "Security Ownership of Certain Beneficial Owners and Management," to be filed with the Securities and Exchange Commission on or prior to April 30, 2023, and is incorporated herein by reference.

**Item 13. *Certain Relationships and Related Transactions, and Director Independence***

The information required by this Item will be contained in the Proxy Statement under the headings "Certain Relationships and Related Party Transactions" and "Corporate Governance," to be filed with the Securities and Exchange Commission on or prior to April 30, 2023, and is incorporated herein by reference.

**Item 14. *Principal Accountant Fees and Services***

The information required by this Item will be contained in the Proxy Statement under the heading "Ratification of Appointment of Independent Registered Public Accounting Firm for Year Ending December 31, 2023," to be filed with the Securities and Exchange Commission on or prior to April 30, 2023, and is incorporated herein by reference.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

**PART IV**

**Item 15. *Exhibits and Consolidated Financial Statement Schedules***

The following documents are filed or incorporated by reference as part of this Annual Report:

**1. Consolidated Financial Statements**

---

| | |
|:---|:---|
| <u>[Reports of Independent Registered Public Accounting Firm](#i2fdd50ddfd9c475aa1777f627f470473_73)</u><u>[(PCAOB ID Number 248)](#i2fdd50ddfd9c475aa1777f627f470473_73)</u> | [66](#i2fdd50ddfd9c475aa1777f627f470473_73) |
| <u>[Consolidated Balance Sheets—As of December 31, 2022 and December 31, 2021](#i2fdd50ddfd9c475aa1777f627f470473_76)</u> | [69](#i2fdd50ddfd9c475aa1777f627f470473_76) |
| <u>[Consolidated Statements of Operations—For the years ended December 31, 2022, 2021 and 2020](#i2fdd50ddfd9c475aa1777f627f470473_79)</u> | [70](#i2fdd50ddfd9c475aa1777f627f470473_79) |
| <u>[Consolidated Statements of Changes in Net Assets—For the years ended December 31, 2022, 2021 and 2020](#i2fdd50ddfd9c475aa1777f627f470473_82)</u> | [71](#i2fdd50ddfd9c475aa1777f627f470473_82) |
| <u>[Consolidated Statements of Cash Flows—For the years ended December 31, 2022, 2021 and 2020](#i2fdd50ddfd9c475aa1777f627f470473_85)</u> | [72](#i2fdd50ddfd9c475aa1777f627f470473_85) |
| <u>[Consolidated Schedule of Investments—December 31, 2022](#i2fdd50ddfd9c475aa1777f627f470473_88)</u> | [73](#i2fdd50ddfd9c475aa1777f627f470473_88) |
| <u>[Consolidated Schedule of Investments—December 31, 2021](#i2fdd50ddfd9c475aa1777f627f470473_91)</u> | [105](#i2fdd50ddfd9c475aa1777f627f470473_91) |
| <u>[Notes to Consolidated Financial Statements](#i2fdd50ddfd9c475aa1777f627f470473_94)</u> | [131](#i2fdd50ddfd9c475aa1777f627f470473_94) |

---

**2. Consolidated Financial Statement Schedule**

---

| | |
|:---|:---|
| <u>[Schedule of Investments in and Advances to Affiliates for the Years Ended December 31, 2022 and 2021](#i2fdd50ddfd9c475aa1777f627f470473_142)</u> | [177](#i2fdd50ddfd9c475aa1777f627f470473_142) |

---

**3. Exhibits**

Listed below are the exhibits which are filed as part of this report (according to the number assigned to them in Item 601 of Regulation S-K):

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 3.1\* | <u>[Articles of Amendment and Restatement of Main Street Capital Corporation (previously filed as Exhibit (a) to Main Street Capital Corporation's Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2 filed on August 15, 2007 (Reg. No. 333-142879))](https://www.sec.gov/Archives/edgar/data/1396440/000095012907004081/h45974a2exv99wa.htm)</u> |
| 3.2\* | <u>[Amended and Restated Bylaws of Main Street Capital Corporation (previously filed as Exhibit 3.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on March 6, 2013 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465913017749/a13-6761_1ex3d1.htm)</u> |
| 4.1\* | <u>[Form of Common Stock Certificate (previously filed as Exhibit (d) to Main Street Capital Corporation's Pre-Effective Amendment No. 2 to the Registration Statement on Form N-2 filed on August 15, 2007 (Reg. No. 333-142879))](https://www.sec.gov/Archives/edgar/data/1396440/000095012907004081/h45974a2exv99wd.htm)</u> |
| 4.2\* | <u>[Dividend Reinvestment and Direct Stock Purchase Plan, effective May 10, 2019 (previously filed as Exhibit 99.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on May 10, 2019 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465919028665/a19-9803_1ex99d1.htm)</u> |
| 4.3\* | <u>[Main Street Mezzanine Fund, LP SBIC debentures guaranteed by the SBA (previously filed as Exhibit (f)(1) to Main Street Capital Corporation's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 filed on June 22, 2007 (Reg. No. 333-142879))](https://www.sec.gov/Archives/edgar/data/1396440/000095012907003067/h45974a1exv99wxfyx1y.htm)</u> |
| 4.4\* | <u>[Main Street Capital III, LP SBIC debentures guaranteed by the SBA (see Exhibit (f)(1) to Main Street Capital Corporation's Pre-Effective Amendment No. 1 to the Registration Statement on Form N-2 filed on June 22, 2007 for a substantially identical copy of the form of debentures)](https://www.sec.gov/Archives/edgar/data/1396440/000095012907003067/h45974a1exv99wxfyx1y.htm)</u> |
| 4.5\* | <u>[Form of Indenture between Main Street Capital Corporation and The Bank of New York Mellon Trust Company, N.A. (previously filed as Exhibit (d)(6) to Main Street Capital Corporation's Post-Effective Amendment No. 2 to the Registration Statement on Form N-2 filed on March 28, 2013 (Reg. No. 333-183555))](https://www.sec.gov/Archives/edgar/data/1396440/000110465913025446/a13-8927_2ex99dd6.htm)</u> |
| 4.6\* | <u>[Form of Fourth Supplemental Indenture relating to the May 2024 Notes, between Main Street Capital Corporation and The Bank of New York Mellon Trust Company, N.A. (previously filed as Exhibit (d)(11) to Main Street Capital Corporation's Post-Effective Amendment No. 7 to the Registration Statement on Form N-2 filed on April 18, 2019 (Reg. No. 333-223483))](https://www.sec.gov/Archives/edgar/data/1396440/000110465919022377/a19-8481_6ex99dd11.htm)</u> |
| 4.7\* | <u>[Form of May 2024 Notes (incorporated by reference to Exhibit 4.8)](https://www.sec.gov/Archives/edgar/data/1396440/000110465919022377/a19-8481_6ex99dd11.htm)</u> |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 4.8\* | <u>[Fifth Supplemental Indenture relating to the July 2026 Notes, between Main Street Capital Corporation and The Bank of New York Mellon Trust Company, N.A., as trustee (previously filed as Exhibit 4.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on January 14, 2021 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465921004133/tm212804d4_ex4-1.htm)</u> |
| 4.9\* | <u>[Form of July 2026 Notes (incorporated by reference to Exhibit 4.10)](https://www.sec.gov/Archives/edgar/data/1396440/000110465921004133/tm212804d4_ex4-1.htm)</u> |
| 4.10\* | <u>[Description of Main Street Capital Corporation's securities registered pursuant to Section 12 of the Securities Exchange Act of 1934 (previously filed as Exhibit 4.11 to Main Street Capital Corporation's Annual Report on Form 10-K filed on February 28, 2020 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000104746920001108/a2240804zex-4_11.htm)</u> |
| 10.1\* | <u>[Omnibus Amendment No. 1, dated as of April 7, 2021, by and among Main Street, the guarantors party thereto, Truist Bank, as administrative agent, solely with respect to Section 2 thereof, the withdrawing lender, and the lenders party thereto (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on April 8, 2021 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000155837021004093/tmb-20210407xex10d1.htm)</u> |
| 10.2\* | <u>[Third Amended and Restated General Security Agreement dated June 5, 2018 (previously filed as Exhibit 10.2 to Main Street Capital Corporation's Current Report on Form 8-K filed on June 6, 2018 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465918038501/a18-14883_1ex10d2.htm)</u> |
| 10.3\* | <u>[Third Amended and Restated Equity Pledge Agreement dated June 5, 2018 (previously filed as Exhibit 10.3 to Main Street Capital Corporation's Current Report on Form 8-K filed on June 6, 2018 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465918038501/a18-14883_1ex10d3.htm)</u> |
| 10.4\* | <u>[Amended and Restated Custodial Agreement dated September 20, 2010 (previously filed as Exhibit 10.3 to Main Street Capital Corporation's Current Report on Form 8-K filed September 21, 2010 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465910049232/a10-18160_1ex10d3.htm)</u> |
| 10.5\* | <u>[Third Amendment to Amended and Restated Credit Agreement and First Amendment to Amended and Restated Custodial Agreement dated November 21, 2011 (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed November 22, 2011 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465911065624/a11-30317_1ex10d1.htm)</u> |
| 10.6\* | <u>[Third Amendment, dated as of August 4, 2022, to the Third Amended and Restated Credit Agreement by and among Main Street, the guarantors party thereto, Truist Bank, as administrative agent, and the lenders party thereto (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on August 4, 2022 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000012/tmb-20220804xex10d1.htm)</u> |
| 10.7\* | <u>[Fourth Amendment, dated as of December 22, 2022, to the Third Amended and Restated Credit Agreement by and among Main Street, the guarantors party thereto, Truist Bank, as administrative agent, and the lenders party thereto](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/truistmainstreetcapital-fo.htm)[(previously filed as Exhibit 10.2 to Main Street Capital Corporation](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/truistmainstreetcapital-fo.htm)['](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/truistmainstreetcapital-fo.htm)[s Current Report on Form 8-K](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/truistmainstreetcapital-fo.htm)[filed on](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/truistmainstreetcapital-fo.htm)[December 27, 2022 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/truistmainstreetcapital-fo.htm)</u> |
| 10.8 | <u>[Joinder Agreement and Supplement, dated January 13, 2023, to the Third Amended and Restated Credit Agreement](main-20221231xexx108.htm)</u> |
| 10.9\* | <u>[Revolving Credit and Security Agreement, dated as of November 22, 2022, among MSCC Funding I, LLC, as the borrower, Main Street Capital Corporation, as the collateral manager, the lenders](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000043/truist_mainstreet-revolvin.htm)[party](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000043/truist_mainstreet-revolvin.htm)[from time to time](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000043/truist_mainstreet-revolvin.htm)[thereto, Truist Bank](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000043/truist_mainstreet-revolvin.htm)[, as administrative agent and swingline lender, Citibank N.A., as collateral agent, document custodian and custodian and Virtus Group, L.P. as collateral administrator (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on November 28, 2022 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000043/truist_mainstreet-revolvin.htm)</u> |
| 10.10\* | <u>[Purchase and Contribution Agreement, dated as of November 22, 2022, among Main Street Capital Corporation, as the seller, and MSCC Funding I, LLC, as the buyer (previously filed as Exhibit 10.2 to Main Street Capital Corporation's Current Report on Form 8-K filed on November 28, 2022 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000043/truist_mainstreet-purchase.htm)</u> |
| 10.11\* | <u>[Lender Joinder Agreement, dated December 6, 2022, to the Revolving Credit and Security Agreement (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on December 6, 2022 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000045/truist_mainstreet-lenderjo.htm)</u> |
| 10.12 | <u>[First Amendment to Credit Agreement, dated as of February 2, 2023, among MSCC Funding I, LLC, as the borrower, Main Street Capital Corporation, as the collateral manager, the lenders party thereto, Truist Bank, as administrative agent and swingline lender, Citibank N.A., as collateral agent document custodian and custodian and Virtus Group, L.P., as collateral administrator](main-20221231xexx1012.htm)</u> |
| 10.13\* | <u>[Note Purchase Agreement, dated as of December 23, 2022, by and among](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/main-notepurchaseagreement.htm)[Main Street Capital Corporation](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/main-notepurchaseagreement.htm)[and the Purchasers party thereto (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on December 27, 2022 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000139644022000051/main-notepurchaseagreement.htm)</u> |
| 10.14 | <u>[First Supplement to Note Purchase Agreement, dated as of February 2, 2023, by and among Main Street Capital Corporation and the Purchasers party thereto](main-20221231xexx1014.htm)</u> |
| 10.15\*† | <u>[Main Street Capital Corporation 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[Equity and Incentive Plan (previously filed as Exhibit 4.4 to Main Street Capital Corporation's Registration Statement on Form S-8 filed on May](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[3](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[, 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[(Reg. No. 333-](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[264643](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)[))](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d4.htm)</u> |

---

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| 10.16\*† | <u>[Main Street Capital Corporation 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[Non-Employee Director Restricted Stock Plan (previously filed as Exhibit 4.5 to Main Street Capital Corporation's Registration Statement on Form S-8 filed on May](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[3](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[, 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[(Reg. No. 333-](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[264643](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)[))](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d5.htm)</u> |
| 10.17\*† | <u>[Form of Restricted Stock Agreement for Executive Officers — Main Street Capital Corporation 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[Equity and Incentive Plan (previously filed as Exhibit 4.6 to Main Street Capital Corporation's Registration Statement on Form S-8 filed on May](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[3](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[, 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[(Reg. No. 333-](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[264643](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)[))](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d6.htm)</u> |
| 10.18\*† | <u>[Form of Restricted Stock Agreement for Non-Employee Directors — Main Street Capital Corporation 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[Non-Employee Director Restricted Stock Plan (previously filed as Exhibit 4.7 to Main Street Capital Corporation's Registration Statement on Form S-8 filed on May](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[3](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[, 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[(Reg. No. 333-](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[264643](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)[))](https://www.sec.gov/Archives/edgar/data/1396440/000155837022006843/tmb-20220503xex4d7.htm)</u> |
| 10.19\* | <u>[Custody Agreement (previously filed as Exhibit (j) to Main Street Capital Corporation's Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 filed on September 21, 2007 (Reg. No. 333-142879))](https://www.sec.gov/Archives/edgar/data/1396440/000095012907004697/h45974a3exv99wj.htm)</u> |
| 10.20\*† | <u>[Form of Confidentiality and Non-Compete Agreement by and between Main Street Capital Corporation and Vincent D. Foster (previously filed as Exhibit (k)(12) to Main Street Capital Corporation's Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 filed on September 21, 2007 (Reg. No. 333-142879))](https://www.sec.gov/Archives/edgar/data/1396440/000095012907004697/h45974a3exv99wk12.htm)</u> |
| 10.21\*† | <u>[Form of Indemnification Agreement by and between Main Street Capital Corporation and each executive officer and director (previously filed as Exhibit (k)(13) to Main Street Capital Corporation's Pre-Effective Amendment No. 3 to the Registration Statement on Form N-2 filed on September 21, 2007 (Reg. No. 333-142879))](https://www.sec.gov/Archives/edgar/data/1396440/000095012907004697/h45974a3exv99wk13.htm)</u> |
| 10.22\* | <u>[Investment Advisory and Administrative Services Agreement dated October 30, 2020 by and among MSC Adviser I, LLC and MSC Income Fund, Inc. (previously filed as Exhibit 10.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on November 3, 2020 (File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000110465920121003/tm2034661d1_ex10-1.htm)</u> |
| 10.23\*† | <u>[Main Street Capital Corporation Deferred Compensation Plan Adoption Agreement and Plan Document (previously filed as Exhibit 4.1 to Main Street Capital Corporation's Registration Statement on Form S-8 filed on December 18, 2015 (File No. 333-208643))](https://www.sec.gov/Archives/edgar/data/1396440/000110465915085825/a15-25245_1ex4d1.htm)</u> |
| 10.24\* | <u>[Form of Equity Distribution Agreement dated](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[March 3](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[, 20](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[22](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[(previously filed as Exhibit 1.1 to Main Street Capital Corporation's Current Report on Form 8-K filed on](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[March 3](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[, 2022](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)[(File No. 1-33723))](https://www.sec.gov/Archives/edgar/data/1396440/000155837022002854/tmb-20220303xex1d1.htm)</u> |
| 14.1\*\* | <u>[Code of](main-20221231xexx141.htm)[Business Conduct and Ethics](main-20221231xexx141.htm)</u> |
| 21.1\*\* | <u>[List of Subsidiaries](main-20221231xex211.htm)</u> |
| 23.1\*\* | <u>[Consent of Grant Thornton LLP, independent registered public accounting firm](main-20221231xexx231.htm)</u> |
| 31.1\*\* | <u>[Rule 13a-14(a)/15d-14(a) certification of Chief Executive Officer](main-20221231xexx311.htm)</u> |
| 31.2\*\* | <u>[Rule 13a-14(a)/15d-14(a) certification of Chief Financial Office](main-20221231xexx312.htm)</u>r |
| 32.1\*\* | <u>[Section 1350 certification of Chief Executive Officer](main-20221231xexx321.htm)</u> |
| 32.2\*\* | <u>[Section 1350 certification of Chief Financial Officer](main-20221231xexx322.htm)</u> |

---

______________________

\*&nbsp;&nbsp;&nbsp;&nbsp;Exhibit previously filed with the Securities and Exchange Commission, as indicated, and incorporated herein by reference.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Furnished herewith.

†&nbsp;&nbsp;&nbsp;&nbsp;Management contract or compensatory plan or arrangement.

------

<u>[Table of contents](#i2fdd50ddfd9c475aa1777f627f470473_7)</u> 

**SIGNATURES**

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **MAIN STREET CAPITAL CORPORATION** | **MAIN STREET CAPITAL CORPORATION** |
| | **By:** | /s/ DWAYNE L. HYZAK |
| | | **Dwayne L. Hyzak** |
| | | **Chief Executive Officer and Director** |
| Date: February 24, 2023 |  |  |

---

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.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| /s/ DWAYNE L. HYZAK | Chief Executive Officer and Director | February 24, 2023 |
| Dwayne L. Hyzak | (principal executive officer) |  |
| /s/ JESSE E. MORRIS | Chief Financial Officer, Chief Operating Officer | February 24, 2023 |
| Jesse E. Morris | (principal financial officer) |  |
| /s/ LANCE A. PARKER | Vice President, Chief Accounting Officer | February 24, 2023 |
| Lance A. Parker | (principal accounting officer) |  |
| /s/ VINCENT D. FOSTER | Chairman of the Board | February 24, 2023 |
| Vincent D. Foster |  |  |
| /s/ J. KEVIN GRIFFIN | Director | February 24, 2023 |
| J. Kevin Griffin |  |  |
| /s/ JOHN E. JACKSON | Director | February 24, 2023 |
| John E. Jackson |  |  |
| /s/ BRIAN E. LANE | Director | February 24, 2023 |
| Brian E. Lane |  |  |
| /s/ KAY MATTHEWS | Director | February 24, 2023 |
| Kay Matthews |  |  |
| /s/ DUNIA A. SHIVE | Director | February 24, 2023 |
| Dunia A. Shive |  |  |
| /s/ STEPHEN B. SOLCHER | Director | February 24, 2023 |
| Stephen B. Solcher |  |  |

---

## Exhibit 10.8

**Exhibit 10.8**

**EXECUTION COPY**

RESPONSE TO NOTICE INCREASE REQUEST

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

January 13, 2023

<br>Truist Bank

3333 Peachtree Road, 8<sup>th</sup> Floor

Atlanta, Georgia 30326

Attention: Hays Wood

Phone: 404-836-5879

Re:&nbsp;&nbsp;&nbsp;&nbsp;Main Street Capital Corporation (the "<u>Company</u>")

Ladies and Gentlemen:

&nbsp;&nbsp;&nbsp;&nbsp;We refer to (a) that certain Third Amended and Restated Credit Agreement, dated as of June 5, 2018 (as amended, restated, supplemented, amended and restated, or otherwise modified from time to time, the "<u>Credit Agreement</u>"; capitalized terms used in this Response Letter (as defined below) and not otherwise defined have the meanings for such terms set forth in the Credit Agreement), by and among the Company, the Guarantors party thereto, the Lenders party thereto and Truist Bank (as successor by merger to Branch Banking and Trust Company), as Administrative Agent (in such capacity, the "<u>Administrative Agent</u>"); and (b) the Notice of Commitment Increase Request, dated as of January 13, 2023, provided by the Company to the Administrative Agent (the "<u>Notice</u>").

&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Notice and Section 2.14 of the Credit Agreement, we deliver this response (this "<u>Response Letter</u>") to confirm that each of the Company and Regions Bank (the "<u>Additional Lender</u>") agrees that the Additional Lender does hereby become a "Lender" under and for all purposes of the Credit Agreement with a Commitment equal to $60,000,000. Without limiting the foregoing, the Additional Lender hereby agrees to be bound by and comply with all of the terms and provisions of the Credit Agreement applicable to it as a "Lender" thereunder and that it will perform in accordance with its terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender. The Additional Lender represents and warrants that it has full power and authority, and has taken all action necessary, to execute and deliver this Response Letter and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;This Response Letter shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors and assigns. This Response Letter 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 Response Letter by telecopy, email, or other electronic method of transmission (e.g. PDF) shall be effective as delivery of a manually executed counterpart of this Response Letter. This Response Letter shall be governed by, and construed in accordance with, the laws of the State of New York. The parties hereto hereby agree that this Response Letter is a joinder agreement and a supplement to the Credit Agreement, in satisfaction of the requirements in Section 2.14 of the Credit Agreement, and a Loan Document.

*[Signature pages follow]*

751622323 21672061&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

751622323 21672061&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

------

Very truly yours,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**REGIONS BANK**,

as Additional Lender

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

By: <u>/s/ William Soo&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name: William Soo

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: Director

**MAIN STREET CAPITAL CORPORATION**

By: <u>/s/ Jesse E. Morris&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Jesse E. Morris

Title: CFO and COO

ACKNOWLEDGED, ACCEPTED

AND AGREED:

**TRUIST BANK**,

as Administrative Agent and an Issuing Bank

By: <u>/s/ Hays Wood&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Hays Wood

Title: Director

751622323 21672061&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

## Exhibit 10.12

Exhibit 10.12

**EXECUTION COPY**

**FIRST AMENDMENT TO CREDIT AGREEMENT**

**(MSCC FUNDING I, LLC)**

THIS FIRST AMENDMENT TO CREDIT AGREEMENT, dated as of February 2, 2023 (this "<u>Amendment</u>"), is entered into by and among MSCC FUNDING I, LLC, a Delaware limited liability company, as borrower (the "<u>Borrower</u>"), MAIN STREET CAPITAL CORPORATION, a Maryland corporation, as collateral manager (the "<u>Collateral Manager</u>"), VIRTUS GROUP, LP, as collateral administrator (the "<u>Collateral Administrator</u>"), CITIBANK, N.A., as collateral agent (in such capacity, the "<u>Collateral Agent</u>"), the Lenders party hereto, and TRUIST BANK, as administrative agent (in such capacity, the "<u>Administrative Agent</u>") and swingline lender (in such capacity, the "<u>Swingline Lender</u>").

**RECITALS**

WHEREAS, the above named parties have entered into that certain Revolving Credit and Security Agreement, dated as of November 22, 2022 (as amended, restated, supplemented or modified through the date hereof, the "<u>Agreement</u>"), by and among the Borrower, the Collateral Manager, the Collateral Administrator, each of the Lenders from time to time party thereto, the Administrative Agent, the Swingline Lender, the Collateral Agent and Citibank, N.A., as Document Custodian and Custodian; and

WHEREAS, pursuant to and in accordance with Section 16.01 of the Agreement, the parties hereto desire to amend the Agreement in certain respects as provided herein.

WHEREAS, each Lender has consented to this Amendment.

NOW, THEREFORE, based upon the above Recitals, the mutual promises and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned, intending to be legally bound, hereby agree as follows:

**SECTION 1.<u>Definitions and Interpretation</u>**.

Each capitalized term used but not defined herein has the meaning ascribed thereto in the Agreement. The rules of construction set forth in Section 1.02 of the Agreement are hereby incorporated as if fully set forth herein.

**SECTION 2.<u>Amendments</u>**.

With effect as of the Effective Date, the Agreement is hereby amended as indicated in the attached <u>Annex A</u> with the text marked in underline indicating additions and with the text marked in strike through indicating deletions to the Agreement.

**SECTION 3.<u>Agreement in Full Force and Effect as Amended</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically amended hereby, all provisions of the Agreement shall remain in full force and effect. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the Agreement other than as expressly set forth herein and shall not constitute a novation of the Agreement.

**SECTION 4.<u>Representations and Warranties</u>**.

Each of the Borrower and Collateral Manager hereby represents and warrants as of the date of this Amendment as follows:

751700368 22723957

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)this Amendment has been duly executed and delivered by it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)this Amendment constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally or by general principles of equity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)each of the representations and warranties of the Borrower and the Collateral Manager contained in the Facility Documents are true and correct in all material respects as of the date of this Amendment (except to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date as if made on such date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)after giving effect to this Amendment, there is no Default, Event of Default, Potential Collateral Manager Termination Event or Collateral Manager Termination Event that is continuing or would result from entering into this Amendment.

**SECTION 5.<u>Conditions to Effectiveness</u>**.

This Amendment shall become effective on the date upon which each of the following conditions precedent has been satisfied (the "<u>Effective Date</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)receipt by the Administrative Agent and the Lenders of executed counterparts of this Amendment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)receipt by Mayer Brown LLP of its fees invoiced to date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)payment of all fees and other amounts due and payable on or prior to the date hereof pursuant to the Facility Documents.

751700368 22723957&nbsp;&nbsp;&nbsp;&nbsp;2

------

**SECTION 6.<u>Miscellaneous</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same agreement. Delivery of an executed signature page of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof. The words "execution," "signed," "signature," "delivery," and words of like import in or relating to any document to be signed in connection with this Amendment and all other documents to be executed in connection with this Amendment shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act; <u>provided</u> that nothing herein shall require the Administrative Agent to accept Electronic Signatures in any form or format without its prior written consent (it being understood that the Administrative Agent has agreed, for purposes of this Amendment and all other documents to be executed in connection with this Amendment, to accept Electronic Signatures delivered via "Adobe Sign" or "Docusign"). For purposes of this Amendment and all other documents to be executed in connection with this Amendment, "Electronic Signature" means an electronic symbol or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record. Each party agrees that this Amendment and all other documents to be executed in connection with this Amendment may be electronically signed, and that any Electronic Signatures appearing on this Amendment and all other documents to be executed in connection with this Amendment are the same as handwritten signatures for the purposes of validity, enforceability, and admissibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)This Amendment may not be amended or otherwise modified except as provided in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The failure or unenforceability of any provision hereof shall not affect the other provisions of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)This Amendment is a Facility Document and all references to a "Facility Document" in the Agreement and the other Facility Documents shall be deemed to include this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)This Amendment represents the final agreement between the parties only with respect to the subject matter expressly covered hereby and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements between the parties. There are no unwritten oral agreements between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT 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 AMENDMENT OR ANY OTHER FACILITY DOCUMENT (EXCEPT, AS TO ANY OTHER FACILITY DOCUMENT, AS EXPRESSLY SET FORTH THEREIN) AND THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

751700368 22723957&nbsp;&nbsp;&nbsp;&nbsp;3

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Each of the Borrower, the Collateral Manager, the Administrative Agent, and the Lenders hereby consents to and directs each of the Collateral Administrator and the Collateral Agent to execute this Amendment and acknowledges and agrees that each of the Collateral Administrator and the Collateral Agent shall be fully protected in relying upon the foregoing consent and direction and hereby releases each of the Collateral Administrator and the Collateral Agent and its respective officers, directors, agents, employees and shareholders, as applicable, from any liability for complying with such direction, including but not limited to any claim that this Amendment is not authorized or permitted by the Agreement or the Facility Documents or any claim that some or all of the conditions precedent to the execution of this Amendment have not been complied with. Each of the Collateral Administrator and the Collateral Agent are entitled to the benefit of every provision of the Agreement relating to the conduct of, affecting the liability of or affording protection to the Collateral Administrator and the Collateral Agent in entering into this Amendment.

**[Signature Pages Follow]**

751700368 22723957&nbsp;&nbsp;&nbsp;&nbsp;4

------

**IN WITNESS WHEREOF**, the undersigned have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above.

---

| | |
|:---|:---|
| **BORROWER:** | MSCC FUNDING I, LLC |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>By: <u>/s/ Jesse E. Morris&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Jesse E. Morris<br>Title: Chief Financial Officer and Chief Operating Officer |
| **COLLATERAL MANAGER:** | MAIN STREET CAPITAL CORPORATION |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>By: <u>/s/ Jesse E. Morris&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Jesse E. Morris<br>Title: Chief Financial Officer and Chief Operating Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

751700368 22723957

------

---

| | |
|:---|:---|
| **COLLATERAL ADMINISTRATOR:** | VIRTUS GROUP, LP<br>By: Rocket Partners Holdings, LLC, its General Partner  |
|  | By: <u>/s/ Lisa Baltagi</u><br>Name: Lisa Baltagi<br>Title: Authorized Signatory |

---

---

| | |
|:---|:---|
| **COLLATERAL AGENT:** | CITIBANK, N.A. |
|  | By: <u>/s/ Ecliff Jackman&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Ecliff Jackman<br>Title: Vice President |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

751700368 22723957

------

---

| | |
|:---|:---|
| **ADMINISTRATIVE AGENT, SWINGLINE LENDER AND LENDER:** | TRUIST BANK |
|  | By: <u>/s/ Jason Meyer</u><br>Name: Jason Meyer<br>Title: Managing Director |

---

751700368 22723957

------

---

| | |
|:---|:---|
| **LENDER:** | FIRST FINANCIAL BANK |
|  | By: <u>/s/ Mike Mendenhall</u><br>Name:<br>Title: |
| **LENDER:** | APPLE BANK FOR SAVINGS |
|  | By<u>: /s/ Burt Feinberg&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Burt Feinberg<br>Title: Managing Director |
| **LENDER:** | ZIONS BANCORPORATION N.A. DBA AMEGY BANK |
|  | By: <u>/s/ Brad Ellis</u><br>Name: Brad Ellis<br>Title: Senior Vice President |

---

751700368 22723957

------

**ANNEX A**

*See Attached*

------

**EXECUTION VERSION <u>CONFORMED THROUGH FIRST AMENDMENT</u>**

Revolving Credit and Security Agreement<br>

among<br>

MSCC Funding I, LLC,<br>as Borrower,<br>

Main Street Capital Corporation, <br>as Collateral Manager<br>

the Lenders from time to time parties hereto,<br>

Truist Bank,<br>as Administrative Agent and Swingline Lender<br>

Citibank, N.A., <br>as Collateral Agent, as Document Custodian and as Custodian<br>

and

Virtus Group, LP,<br>as Collateral Administrator<br>

Dated as of November 22, 2022<br>

750499896 22723957<u>751700376 22723957</u>

------

**Table of Contents**

Section&nbsp;&nbsp;&nbsp;&nbsp;Heading&nbsp;&nbsp;&nbsp;&nbsp;Page

ARTICLE I&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS&nbsp;&nbsp;&nbsp;&nbsp;1

Section 1.01.&nbsp;&nbsp;&nbsp;&nbsp;Definitions&nbsp;&nbsp;&nbsp;&nbsp;1

Section 1.02.&nbsp;&nbsp;&nbsp;&nbsp;Rules of Construction&nbsp;&nbsp;&nbsp;&nbsp;58

Section 1.03.&nbsp;&nbsp;&nbsp;&nbsp;Computation of Time Periods&nbsp;&nbsp;&nbsp;&nbsp;58

Section 1.04.&nbsp;&nbsp;&nbsp;&nbsp;Collateral Value Calculation Procedures&nbsp;&nbsp;&nbsp;&nbsp;59

Section 1.05.&nbsp;&nbsp;&nbsp;&nbsp;Divisions&nbsp;&nbsp;&nbsp;&nbsp;60

Section 1.06.&nbsp;&nbsp;&nbsp;&nbsp;Rates&nbsp;&nbsp;&nbsp;&nbsp;61

ARTICLE II&nbsp;&nbsp;&nbsp;&nbsp;ADVANCES&nbsp;&nbsp;&nbsp;&nbsp;61

Section 2.01.&nbsp;&nbsp;&nbsp;&nbsp;Revolving Credit Facility&nbsp;&nbsp;&nbsp;&nbsp;61

Section 2.02.&nbsp;&nbsp;&nbsp;&nbsp;Making of the Advances&nbsp;&nbsp;&nbsp;&nbsp;62

Section 2.03.&nbsp;&nbsp;&nbsp;&nbsp;Evidence of Indebtedness&nbsp;&nbsp;&nbsp;&nbsp;62

Section 2.04.&nbsp;&nbsp;&nbsp;&nbsp;Payment of Principal and Interest&nbsp;&nbsp;&nbsp;&nbsp;63

Section 2.05.&nbsp;&nbsp;&nbsp;&nbsp;Prepayment of Advances&nbsp;&nbsp;&nbsp;&nbsp;64

Section 2.06.&nbsp;&nbsp;&nbsp;&nbsp;Changes of Commitments&nbsp;&nbsp;&nbsp;&nbsp;65

Section 2.07.&nbsp;&nbsp;&nbsp;&nbsp;Maximum Lawful Rate&nbsp;&nbsp;&nbsp;&nbsp;65

Section 2.08.&nbsp;&nbsp;&nbsp;&nbsp;Several Obligations&nbsp;&nbsp;&nbsp;&nbsp;65

Section 2.09.&nbsp;&nbsp;&nbsp;&nbsp;Increased Costs&nbsp;&nbsp;&nbsp;&nbsp;66

Section 2.10.&nbsp;&nbsp;&nbsp;&nbsp;Compensation; Breakage Payments&nbsp;&nbsp;&nbsp;&nbsp;67

Section 2.11.&nbsp;&nbsp;&nbsp;&nbsp;Illegality; Inability to Determine Rates; Benchmark Replacement Setting&nbsp;&nbsp;&nbsp;&nbsp;68

Section 2.12.&nbsp;&nbsp;&nbsp;&nbsp;Rescission or Return of Payment&nbsp;&nbsp;&nbsp;&nbsp;70

Section 2.13.&nbsp;&nbsp;&nbsp;&nbsp;Past Due Interest&nbsp;&nbsp;&nbsp;&nbsp;71

Section 2.14.&nbsp;&nbsp;&nbsp;&nbsp;Payments Generally&nbsp;&nbsp;&nbsp;&nbsp;71

Section 2.15.&nbsp;&nbsp;&nbsp;&nbsp;Refunding of Swingline Advances&nbsp;&nbsp;&nbsp;&nbsp;71

Section 2.16.&nbsp;&nbsp;&nbsp;&nbsp;Defaulting Lenders&nbsp;&nbsp;&nbsp;&nbsp;72

Section 2.17.&nbsp;&nbsp;&nbsp;&nbsp;Replacement of Lenders&nbsp;&nbsp;&nbsp;&nbsp;74

Section 2.18.&nbsp;&nbsp;&nbsp;&nbsp;Increase in Facility Amount&nbsp;&nbsp;&nbsp;&nbsp;75

ARTICLE III&nbsp;&nbsp;&nbsp;&nbsp;CONDITIONS PRECEDENT&nbsp;&nbsp;&nbsp;&nbsp;76

Section 3.01.&nbsp;&nbsp;&nbsp;&nbsp;Conditions Precedent to Initial Advances&nbsp;&nbsp;&nbsp;&nbsp;76

Section 3.02.&nbsp;&nbsp;&nbsp;&nbsp;Conditions Precedent to Each Borrowing&nbsp;&nbsp;&nbsp;&nbsp;78

ARTICLE IV&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES&nbsp;&nbsp;&nbsp;&nbsp;79

Section 4.01.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of the Borrower&nbsp;&nbsp;&nbsp;&nbsp;79

Section 4.02.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;83

ARTICLE V&nbsp;&nbsp;&nbsp;&nbsp;COVENANTS&nbsp;&nbsp;&nbsp;&nbsp;86

Section 5.01.&nbsp;&nbsp;&nbsp;&nbsp;Affirmative Covenants of the Borrower&nbsp;&nbsp;&nbsp;&nbsp;86

Section 5.02.&nbsp;&nbsp;&nbsp;&nbsp;Negative Covenants of the Borrower&nbsp;&nbsp;&nbsp;&nbsp;91

Section 5.03.&nbsp;&nbsp;&nbsp;&nbsp;Affirmative Covenants of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;94

Section 5.04.&nbsp;&nbsp;&nbsp;&nbsp;Negative Covenants of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;97

Section 5.05.&nbsp;&nbsp;&nbsp;&nbsp;Certain Undertakings Relating to Separateness&nbsp;&nbsp;&nbsp;&nbsp;97

ARTICLE VI&nbsp;&nbsp;&nbsp;&nbsp;EVENTS OF DEFAULT&nbsp;&nbsp;&nbsp;&nbsp;99

Section 6.01.&nbsp;&nbsp;&nbsp;&nbsp;Events of Default&nbsp;&nbsp;&nbsp;&nbsp;99

Section 6.02.&nbsp;&nbsp;&nbsp;&nbsp;Collateral Manager Termination Events&nbsp;&nbsp;&nbsp;&nbsp;103

ARTICLE VII&nbsp;&nbsp;&nbsp;&nbsp;PLEDGE OF COLLATERAL; RIGHTS OF THE COLLATERAL AGENT&nbsp;&nbsp;&nbsp;&nbsp;104

i

750499896 22723957

<u>751700376 22723957</u>

------

Section 7.01.&nbsp;&nbsp;&nbsp;&nbsp;Grant of Security&nbsp;&nbsp;&nbsp;&nbsp;104

Section 7.02.&nbsp;&nbsp;&nbsp;&nbsp;Release of Security Interest&nbsp;&nbsp;&nbsp;&nbsp;106

Section 7.03.&nbsp;&nbsp;&nbsp;&nbsp;Rights and Remedies&nbsp;&nbsp;&nbsp;&nbsp;106

Section 7.04.&nbsp;&nbsp;&nbsp;&nbsp;Remedies Cumulative&nbsp;&nbsp;&nbsp;&nbsp;107

Section 7.05.&nbsp;&nbsp;&nbsp;&nbsp;Related Documents&nbsp;&nbsp;&nbsp;&nbsp;108

Section 7.06.&nbsp;&nbsp;&nbsp;&nbsp;Borrower Remains Liable&nbsp;&nbsp;&nbsp;&nbsp;108

Section 7.07.&nbsp;&nbsp;&nbsp;&nbsp;Protection of Collateral&nbsp;&nbsp;&nbsp;&nbsp;108

ARTICLE VIII&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTS, ACCOUNTINGS AND RELEASES&nbsp;&nbsp;&nbsp;&nbsp;109

Section 8.01.&nbsp;&nbsp;&nbsp;&nbsp;Collection of Money&nbsp;&nbsp;&nbsp;&nbsp;109

Section 8.02.&nbsp;&nbsp;&nbsp;&nbsp;Collection Account&nbsp;&nbsp;&nbsp;&nbsp;110

Section 8.03.&nbsp;&nbsp;&nbsp;&nbsp;Transaction Accounts&nbsp;&nbsp;&nbsp;&nbsp;111

Section 8.04.&nbsp;&nbsp;&nbsp;&nbsp;The Revolving Reserve Account; Fundings&nbsp;&nbsp;&nbsp;&nbsp;111

Section 8.05.&nbsp;&nbsp;&nbsp;&nbsp;Reinvestment of Funds in Covered Accounts; Reports by Collateral Agent&nbsp;&nbsp;&nbsp;&nbsp;112

Section 8.06.&nbsp;&nbsp;&nbsp;&nbsp;Accountings&nbsp;&nbsp;&nbsp;&nbsp;113

Section 8.07.&nbsp;&nbsp;&nbsp;&nbsp;Release of Collateral&nbsp;&nbsp;&nbsp;&nbsp;114

Section 8.08.&nbsp;&nbsp;&nbsp;&nbsp;Reports by Independent Accountants&nbsp;&nbsp;&nbsp;&nbsp;115

Section 8.09.&nbsp;&nbsp;&nbsp;&nbsp;Covered Account Details&nbsp;&nbsp;&nbsp;&nbsp;115

ARTICLE IX&nbsp;&nbsp;&nbsp;&nbsp;APPLICATION OF MONIES&nbsp;&nbsp;&nbsp;&nbsp;115

Section 9.01.&nbsp;&nbsp;&nbsp;&nbsp;Disbursements of Monies from Payment Account&nbsp;&nbsp;&nbsp;&nbsp;115

ARTICLE X&nbsp;&nbsp;&nbsp;&nbsp;SALE OF COLLATERAL LOANS; PURCHASE OF ADDITIONAL COLLATERAL LOANS&nbsp;&nbsp;&nbsp;&nbsp;119

Section 10.01.&nbsp;&nbsp;&nbsp;&nbsp;Sales of Collateral Loans&nbsp;&nbsp;&nbsp;&nbsp;119

Section 10.02.&nbsp;&nbsp;&nbsp;&nbsp;Purchase of Additional Collateral Loans&nbsp;&nbsp;&nbsp;&nbsp;120

Section 10.03.&nbsp;&nbsp;&nbsp;&nbsp;Substitution and Transfer of Loans&nbsp;&nbsp;&nbsp;&nbsp;121

Section 10.04.&nbsp;&nbsp;&nbsp;&nbsp;Conditions Applicable to All Sale, Substitution and Purchase Transactions&nbsp;&nbsp;&nbsp;&nbsp;122

Section 10.05.&nbsp;&nbsp;&nbsp;&nbsp;Additional Equity Contributions&nbsp;&nbsp;&nbsp;&nbsp;123

ARTICLE XI&nbsp;&nbsp;&nbsp;&nbsp;ADMINISTRATION AND SERVICING OF CONTRACTS&nbsp;&nbsp;&nbsp;&nbsp;123

Section 11.01.&nbsp;&nbsp;&nbsp;&nbsp;Designation of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;123

Section 11.02.&nbsp;&nbsp;&nbsp;&nbsp;Duties of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;123

Section 11.03.&nbsp;&nbsp;&nbsp;&nbsp;Limited Liability of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;126

Section 11.04.&nbsp;&nbsp;&nbsp;&nbsp;Authorization of the Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;127

Section 11.05.&nbsp;&nbsp;&nbsp;&nbsp;Collection Efforts; Modification of Collateral&nbsp;&nbsp;&nbsp;&nbsp;127

Section 11.06.&nbsp;&nbsp;&nbsp;&nbsp;Collateral Management Compensation&nbsp;&nbsp;&nbsp;&nbsp;128

Section 11.07.&nbsp;&nbsp;&nbsp;&nbsp;The Collateral Manager Not to Resign&nbsp;&nbsp;&nbsp;&nbsp;128

Section 11.08.&nbsp;&nbsp;&nbsp;&nbsp;Collateral Manager Termination Notice; Appointment of Successor Collateral Manager&nbsp;&nbsp;&nbsp;&nbsp;128

ARTICLE XII&nbsp;&nbsp;&nbsp;&nbsp;THE AGENTS&nbsp;&nbsp;&nbsp;&nbsp;129

Section 12.01.&nbsp;&nbsp;&nbsp;&nbsp;Authorization and Action&nbsp;&nbsp;&nbsp;&nbsp;129

Section 12.02.&nbsp;&nbsp;&nbsp;&nbsp;Delegation of Duties&nbsp;&nbsp;&nbsp;&nbsp;131

Section 12.03.&nbsp;&nbsp;&nbsp;&nbsp;Agent's Reliance, Etc&nbsp;&nbsp;&nbsp;&nbsp;131

Section 12.04.&nbsp;&nbsp;&nbsp;&nbsp;Indemnification&nbsp;&nbsp;&nbsp;&nbsp;134

Section 12.05.&nbsp;&nbsp;&nbsp;&nbsp;Successor Agents&nbsp;&nbsp;&nbsp;&nbsp;134

Section 12.06.&nbsp;&nbsp;&nbsp;&nbsp;Compensation&nbsp;&nbsp;&nbsp;&nbsp;135

ii

750499896 22723957

<u>751700376 22723957</u>

------

Section 12.07.&nbsp;&nbsp;&nbsp;&nbsp;Erroneous Payments&nbsp;&nbsp;&nbsp;&nbsp;135

Section 12.08.&nbsp;&nbsp;&nbsp;&nbsp;Instructions to Collateral Agent&nbsp;&nbsp;&nbsp;&nbsp;138

Section 12.09.&nbsp;&nbsp;&nbsp;&nbsp;The Collateral Agent&nbsp;&nbsp;&nbsp;&nbsp;138

ARTICLE XIII&nbsp;&nbsp;&nbsp;&nbsp;THE DOCUMENT CUSTODIAN&nbsp;&nbsp;&nbsp;&nbsp;141

Section 13.01.&nbsp;&nbsp;&nbsp;&nbsp;Designation of Document Custodian&nbsp;&nbsp;&nbsp;&nbsp;141

Section 13.02.&nbsp;&nbsp;&nbsp;&nbsp;Duties of Document Custodian&nbsp;&nbsp;&nbsp;&nbsp;141

Section 13.03.&nbsp;&nbsp;&nbsp;&nbsp;Merger or Consolidation&nbsp;&nbsp;&nbsp;&nbsp;144

Section 13.04.&nbsp;&nbsp;&nbsp;&nbsp;Document Custodian Compensation&nbsp;&nbsp;&nbsp;&nbsp;145

Section 13.05.&nbsp;&nbsp;&nbsp;&nbsp;Document Custodian Removal&nbsp;&nbsp;&nbsp;&nbsp;145

Section 13.06.&nbsp;&nbsp;&nbsp;&nbsp;Limitation on Liability&nbsp;&nbsp;&nbsp;&nbsp;145

Section 13.07.&nbsp;&nbsp;&nbsp;&nbsp;Resignation of the Document Custodian&nbsp;&nbsp;&nbsp;&nbsp;148

Section 13.08.&nbsp;&nbsp;&nbsp;&nbsp;Release of Related Documents&nbsp;&nbsp;&nbsp;&nbsp;148

Section 13.09.&nbsp;&nbsp;&nbsp;&nbsp;Return of Related Documents&nbsp;&nbsp;&nbsp;&nbsp;149

Section 13.10.&nbsp;&nbsp;&nbsp;&nbsp;Access to Certain Documentation and Information Regarding the Collateral; Audits&nbsp;&nbsp;&nbsp;&nbsp;149

Section 13.11.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of the Document Custodian&nbsp;&nbsp;&nbsp;&nbsp;150

ARTICLE XIV&nbsp;&nbsp;&nbsp;&nbsp;THE CUSTODIAN&nbsp;&nbsp;&nbsp;&nbsp;151

Section 14.01.&nbsp;&nbsp;&nbsp;&nbsp;Designation of Custodian&nbsp;&nbsp;&nbsp;&nbsp;151

Section 14.02.&nbsp;&nbsp;&nbsp;&nbsp;Duties of Custodian&nbsp;&nbsp;&nbsp;&nbsp;151

Section 14.03.&nbsp;&nbsp;&nbsp;&nbsp;Merger or Consolidation&nbsp;&nbsp;&nbsp;&nbsp;151

Section 14.04.&nbsp;&nbsp;&nbsp;&nbsp;Custodian Compensation&nbsp;&nbsp;&nbsp;&nbsp;151

Section 14.05.&nbsp;&nbsp;&nbsp;&nbsp;Custodian Removal&nbsp;&nbsp;&nbsp;&nbsp;152

Section 14.06.&nbsp;&nbsp;&nbsp;&nbsp;Limitation on Liability&nbsp;&nbsp;&nbsp;&nbsp;152

Section 14.07.&nbsp;&nbsp;&nbsp;&nbsp;Resignation of the Custodian&nbsp;&nbsp;&nbsp;&nbsp;154

Section 14.08.&nbsp;&nbsp;&nbsp;&nbsp;Access to Certain Documentation and Information Regarding the Collateral; Audits&nbsp;&nbsp;&nbsp;&nbsp;155

Section 14.09.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of the Custodian&nbsp;&nbsp;&nbsp;&nbsp;155

ARTICLE XV&nbsp;&nbsp;&nbsp;&nbsp;THE COLLATERAL ADMINISTRATOR&nbsp;&nbsp;&nbsp;&nbsp;156

Section 15.01.&nbsp;&nbsp;&nbsp;&nbsp;Powers and Duties of Collateral Administrator&nbsp;&nbsp;&nbsp;&nbsp;156

Section 15.02.&nbsp;&nbsp;&nbsp;&nbsp;Compensation&nbsp;&nbsp;&nbsp;&nbsp;157

Section 15.03.&nbsp;&nbsp;&nbsp;&nbsp;Limitation of Responsibility of the Collateral Administrator; Indemnification&nbsp;&nbsp;&nbsp;&nbsp;157

Section 15.04.&nbsp;&nbsp;&nbsp;&nbsp;Termination of Collateral Administrator&nbsp;&nbsp;&nbsp;&nbsp;162

Section 15.05.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties of the Collateral Administrator&nbsp;&nbsp;&nbsp;&nbsp;163

Section 15.06.&nbsp;&nbsp;&nbsp;&nbsp;Successors and Assigns&nbsp;&nbsp;&nbsp;&nbsp;163

Section 15.07.&nbsp;&nbsp;&nbsp;&nbsp;Joint Venture&nbsp;&nbsp;&nbsp;&nbsp;164

ARTICLE XVI&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS&nbsp;&nbsp;&nbsp;&nbsp;164

Section 16.01.&nbsp;&nbsp;&nbsp;&nbsp;No Waiver; Modifications in Writing&nbsp;&nbsp;&nbsp;&nbsp;164

Section 16.02.&nbsp;&nbsp;&nbsp;&nbsp;Notices, Etc&nbsp;&nbsp;&nbsp;&nbsp;165

Section 16.03.&nbsp;&nbsp;&nbsp;&nbsp;Taxes&nbsp;&nbsp;&nbsp;&nbsp;165

Section 16.04.&nbsp;&nbsp;&nbsp;&nbsp;Costs and Expenses; Indemnification&nbsp;&nbsp;&nbsp;&nbsp;170

Section 16.05.&nbsp;&nbsp;&nbsp;&nbsp;Execution in Counterparts&nbsp;&nbsp;&nbsp;&nbsp;172

Section 16.06.&nbsp;&nbsp;&nbsp;&nbsp;Assignability&nbsp;&nbsp;&nbsp;&nbsp;173

Section 16.07.&nbsp;&nbsp;&nbsp;&nbsp;Governing Law&nbsp;&nbsp;&nbsp;&nbsp;175

Section 16.08.&nbsp;&nbsp;&nbsp;&nbsp;Severability of Provisions&nbsp;&nbsp;&nbsp;&nbsp;175

iii

750499896 22723957

<u>751700376 22723957</u>

------

Section 16.09.&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality&nbsp;&nbsp;&nbsp;&nbsp;175

Section 16.10.&nbsp;&nbsp;&nbsp;&nbsp;Merger&nbsp;&nbsp;&nbsp;&nbsp;176

Section 16.11.&nbsp;&nbsp;&nbsp;&nbsp;Survival&nbsp;&nbsp;&nbsp;&nbsp;176

Section 16.12.&nbsp;&nbsp;&nbsp;&nbsp;Submission to Jurisdiction; Waivers; Service of Process; Etc&nbsp;&nbsp;&nbsp;&nbsp;176

Section 16.13.&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Jury Trial&nbsp;&nbsp;&nbsp;&nbsp;177

Section 16.14.&nbsp;&nbsp;&nbsp;&nbsp;Right of Setoff; Payments Pro Rata&nbsp;&nbsp;&nbsp;&nbsp;177

Section 16.15.&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Setoff&nbsp;&nbsp;&nbsp;&nbsp;178

Section 16.16.&nbsp;&nbsp;&nbsp;&nbsp;PATRIOT Act Notice&nbsp;&nbsp;&nbsp;&nbsp;178

Section 16.17.&nbsp;&nbsp;&nbsp;&nbsp;Legal Holidays&nbsp;&nbsp;&nbsp;&nbsp;178

Section 16.18.&nbsp;&nbsp;&nbsp;&nbsp;Non-Petition&nbsp;&nbsp;&nbsp;&nbsp;178

Section 16.19.&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgement and Consent to Bail-In of Affected Financial Institutions&nbsp;&nbsp;&nbsp;&nbsp;178

Section 16.20.&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgement Regarding Any Supported QFCs&nbsp;&nbsp;&nbsp;&nbsp;179

iv

750499896 22723957

<u>751700376 22723957</u>

------

SCHEDULES

Schedule 1&nbsp;&nbsp;&nbsp;&nbsp;Initial Commitments and Percentages

Schedule 2&nbsp;&nbsp;&nbsp;&nbsp;Form of Monthly Report

Schedule 3&nbsp;&nbsp;&nbsp;&nbsp;Initial Collateral Loans

Schedule 4&nbsp;&nbsp;&nbsp;&nbsp;GICS Industry Group Classifications

Schedule 5&nbsp;&nbsp;&nbsp;&nbsp;Notice Information

Schedule 6&nbsp;&nbsp;&nbsp;&nbsp;Covered Account Details

Schedule 7&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatories

Schedule 8&nbsp;&nbsp;&nbsp;&nbsp;Scheduled Split First Lien Loans

Schedule 9&nbsp;&nbsp;&nbsp;&nbsp;Scheduled Split Lien Loans

EXHIBITS

Exhibit A&nbsp;&nbsp;&nbsp;&nbsp;Form of Notice of Borrowing (with attached form of Borrowing Base Calculation)

Exhibit B&nbsp;&nbsp;&nbsp;&nbsp;Form of Notice of Prepayment

Exhibit C&nbsp;&nbsp;&nbsp;&nbsp;Form of Assignment and Acceptance

Exhibit D&nbsp;&nbsp;&nbsp;&nbsp;Form of Account Control Agreement

Exhibit E&nbsp;&nbsp;&nbsp;&nbsp;Form of Release of Related Documents

Exhibit F-1&nbsp;&nbsp;&nbsp;&nbsp;Form of Facility Amount Increase Request

Exhibit F-2&nbsp;&nbsp;&nbsp;&nbsp;Form of Facility Amount Increase Agreement

Exhibit F-3&nbsp;&nbsp;&nbsp;&nbsp;Form of Lender Joinder Agreement

Exhibit G&nbsp;&nbsp;&nbsp;&nbsp;Form of Loan Checklist

v

750499896 22723957

<u>751700376 22723957</u>

------

**REVOLVING CREDIT AND SECURITY AGREEMENT**

This Revolving Credit and Security Agreement, dated as of November 22, 2022, is made by and among MSCC Funding I, LLC, a Delaware limited liability company, as borrower (the *"Borrower"*); Main Street Capital Corporation, a Maryland corporation, as the collateral manager (the *"Collateral Manager"*); the Lenders from time to time party hereto; Truist Bank (*"Truist"*), as administrative agent for the Secured Parties (as hereinafter defined) (the *"Administrative Agent"*) and as Swingline Lender (in such capacity, the "*Swingline Lender*"); Citibank, N.A., as collateral agent for the Secured Parties (the *"Collateral Agent"*), as custodian (in such capacity, together with its successors and assigns, the *"Custodian"*) and as document custodian (in such capacity, together with its successors and assigns, the *"Document Custodian"*); and Virtus Group, LP, as collateral administrator (the *"Collateral Administrator"*).

**Recitals:**

**WHEREAS**, the Borrower desires that the Lenders make advances on a revolving basis to the Borrower on the terms and subject to the conditions set forth in this Agreement; and

**WHEREAS**, each Lender is willing to make such advances to the Borrower on the terms and subject to the conditions set forth in this Agreement.

**NOW, THEREFORE**, in consideration of the premises and of the mutual covenants herein contained, the parties hereto agree as follows:

**Article I**<br>**DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS**

*Section 1.01.Definitions*. As used in this Agreement, the following terms shall have the meanings indicated:

*"Account Control Agreement"* means an agreement in substantially the form of <u>Exhibit D</u>.

*"Adjusted Term SOFR"* means, for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation <u>plus</u> (b) the Term SOFR Adjustment.

*"Administrative Agent"* has the meaning assigned to such term in the introduction to this Agreement.

*"Administrative Expense Cap"* means, for any rolling twelve (12) month period, Administrative Expenses in an amount equal to $300,000 (other than fees and expenses incurred on or prior to the Closing Date).

 *"Administrative Expenses"* means, for any Interest Accrual Period, the fees and expenses (including indemnities) and other amounts payable by the Borrower due or accrued with respect to the related Payment Date and payable by the Borrower in the following order:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>first</u>, on a *pro rata* basis, to the Collateral Agent, the Custodian, the Document Custodian and the Collateral Administrator, any amounts and indemnities payable to such Persons pursuant to the Facility Documents; 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;(b)<u>second</u>, on a *pro rata* basis, to:

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Independent Accountants, agents (other than the Collateral Manager) and counsel of the Borrower for fees and expenses related to the Collateral and the Facility Documents, to any subcontractor of the Collateral Manager and to the Independent Manager of the Borrower for its fees and expenses incurred in acting in such capacity; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)to any rating agency for fees and expenses in connection with the rating of (or provision of credit estimates in respect of) any Collateral Loans.

*"Advance"* means each loan advanced by the Lenders (including the Swingline Lender) to the Borrower on a Borrowing Date pursuant to <u>Article II</u> (including each Swingline Advance and each advance made for the purpose of refunding the Swingline Lender for any Swingline Advances pursuant to <u>Section 2.15(a)</u>).

*"Advance Rate"* means, with respect to any Collateral Loan, the corresponding percentage for the loan type set forth below:

<u>Loan Type</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Advance Rate</u>

First Lien Loan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70.0%

Split First Lien Loan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;70.0%

Split Lien Loan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;53.0%

Second Lien Loan&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.0%

*"Affected Financial Institution"* means (a) any EEA Financial Institution or (b) any UK Financial Institution*.* 

*"Affected Person"* means (i) the Administrative Agent, each Lender and each of their respective Affiliates and (ii) any assignee or participant of any Lender.

*"Affiliate"* means, in respect of a referenced Person, another Person Controlling, Controlled by or under common Control with such referenced Person; *provided* that a Person shall not be deemed to be an *"Affiliate"* of an Obligor solely because it is under the common ownership or control of the same financial sponsor or affiliate thereof as such Obligor (except if any such Person or Obligor provides collateral for, guarantees or otherwise supports the obligations of the other such Person or Obligor).

*"Agents"* means, collectively, the Administrative Agent, the Collateral Administrator and the Collateral Agent.

*"Aggregate Collateral Balance"* means, at any time, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Aggregate Principal Balance of all Eligible Collateral Loans (other than Defaulted Collateral Loans, Credit Improved Loans, Discount Collateral Loans and Haircut Collateral Loans), *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Defaulted Collateral Loan Balance, *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the aggregate purchase price (i.e., the purchase price as a percentage of par multiplied by the current Principal Balance) of all Discount Collateral Loans that are Eligible Collateral Loans and not Defaulted Collateral Loans, Haircut Collateral Loans or Credit Improved Loans, *plus*

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the aggregate unfunded commitments of all Delayed Drawdown Collateral Loans and Revolving Collateral Loans that are Eligible Collateral Loans, *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the Credit Improved Loan Collateral Loan Balance, *plus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)the Haircut Collateral Loan Balance.

*"Aggregate Funded Spread"* means, as of any date, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)in the case of each Floating Rate Loan (excluding any Floor Loan) that bears interest at a spread over an index (including any SOFR rate based index), (i) the excess of the sum of such spread and such index *over* the Benchmark as then in effect (which spread or excess may be expressed as a negative percentage) *multiplied by* (ii) the Principal Balance of such Collateral Loan; 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;(b)in the case of each Floor Loan, (i) the excess of the interest rate on such Floor Loan (including any interest rate spread) as of such date *over* the Benchmark as then in effect (which spread or excess may be expressed as a negative percentage) *multiplied by* (ii) the Principal Balance of each such Collateral Loan.

*"Aggregate Principal Balance"* means, when used with respect to all or a portion of the Collateral Loans, the sum of the Principal Balances of all or of such portion of such Collateral Loans.

*"Aggregate Unfunded Spread"* means, as of any date, the sum of the products obtained by *multiplying* (a) for each Delayed Drawdown Collateral Loan and Revolving Collateral Loan, the related commitment fee or other analogous fees (expressed at a *per annum* rate) then in effect as of such date and (b) the undrawn commitments of each such Delayed Drawdown Collateral Loan and Revolving Collateral Loan as of such date.

*"Agreement"* means this Revolving Credit and Security Agreement.

*"Anti-Corruption Laws"* means, with respect to any Person, all laws, rules, and regulations of any jurisdiction applicable to such Person or its subsidiaries from time to time concerning or relating to bribery or corruption.

*"Anti-Money Laundering Laws"* means the laws, rules and regulations imposed by any governmental authorities, including, without limitation, the Government of Canada, with jurisdiction over the Borrower, the Collateral Manager or any of their respective subsidiaries that relate to money laundering or terrorism financing or any financial record-keeping and reporting requirements thereunder.

*"Applicable Law"* means any Law of any Governmental Authority, including all Federal and state banking or securities laws, to which the Person in question is subject or by which it or any of its assets or properties are bound. For the avoidance of doubt, for purposes of <u>Section 16.03</u>, "Applicable Law" shall include FATCA.

*"Applicable Margin"* has the meaning assigned to such term in the Lender Fee Letter.

*"Appraisal"* means, with respect to any Collateral Loan, an appraisal of such Collateral Loan that is conducted by an Approved Appraisal Firm, which may be in the form of an update or reaffirmation by an Approved Appraisal Firm of an appraisal of such Collateral Loan previously performed by such Approved Appraisal Firm or another Approved Appraisal Firm.

750499896 22723957

<u>751700376 22723957</u>

------

*"Approved Appraisal Firm"* means (i) Deloitte & Touche LLP, (ii) Valuation Research Corporation and (iii) any other independent appraisal firm or independent financial advisor recognized as being experienced in conducting valuations of secured loans retained by the Borrower, the Collateral Manager or the agent or lenders under any Collateral Loan and consented to by the Administrative Agent.

*"Assignment and Acceptance"* means an Assignment and Acceptance in substantially the form of <u>Exhibit C</u>, entered into by a Lender, an assignee, the Administrative Agent and, if applicable, the Borrower.

*"Available Tenor"* means, as of any date of determination and with respect to the then-current Benchmark, as applicable, (x) 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 (y) 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 Accrual Period" pursuant to <u>Section 2.11(e)</u>.

*"Bail-In Action"* 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.

*"Bail-In Legislation"* 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 which 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).

 *"Bankruptcy Code"* means the United States Bankruptcy Code, Title 11, United States Code §§101 <u>et seq</u>.

*"Base Rate"* means, for any day, a rate per annum equal to the highest of (a) the Prime Rate, (b) the Federal Funds Rate, as in effect from time to time, <u>plus</u> 0.50%, (c) Term SOFR for a one-month tenor in effect on such day <u>plus</u> 1.00% and (d) zero percent (0%). The Administrative Agent's prime lending rate is a reference rate and does not necessarily represent the lowest or best rate actually charged to any customer. The Administrative Agent and the Lenders may make commercial loans or other loans at rates of interest at, above, or below the Administrative Agent's prime lending rate. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate, or Adjusted Term SOFR will be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate, or Adjusted Term SOFR, respectively. Interest calculated pursuant to <u>clause (a)</u> above will be determined based on a year of 365 or 366 days, as applicable, and actual days elapsed. Interest calculated pursuant to <u>clauses (b)</u> and <u>(c)</u> above will be determined based on a year of 360 days and actual days elapsed.

*"Base Rate Term SOFR Determination Day"* shall have the meaning set forth the definition of "Term SOFR".

750499896 22723957

<u>751700376 22723957</u>

------

*"Benchmark"* means, initially, the Term SOFR Reference Rate; <u>provided</u> 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 2.11(b)</u>.

*"Benchmark Replacement"* means with respect to any Benchmark Transition Event, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the sum of (i) Daily Simple SOFR and (ii) 0.10%; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;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.

If the Benchmark Replacement as determined pursuant to <u>clause (a)</u> or <u>(b)</u> above would be less than the Floor, the Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Facility Documents.

 *"Benchmark Replacement Adjustment"* 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.

*"Benchmark Replacement Date"* means, as determined by the Administrative Agent, the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (a)</u> or <u>(b)</u> 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of <u>clause (c)</u> of the definition of "Benchmark Transition Event", the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative; <u>provided</u> that such non-representativeness will be determined by reference to the most recent statement or publication referenced in such <u>clause (c)</u> and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

750499896 22723957

<u>751700376 22723957</u>

------

For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of <u>clause (a)</u> or <u>(b)</u> above 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).

*"Benchmark Transition Event"* means, as determined by the Administrative Agent, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;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; <u>provided</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;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; <u>provided</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;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).

*"Benchmark Unavailability Period"* 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 Facility Document in accordance with <u>Section 2.11</u> and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Facility Document in accordance with <u>Section 2.11</u>.

*"Beneficial Ownership Certificate"* means a certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

*"Beneficial Ownership Regulation"* means 31 C.F.R. §1010.230.

750499896 22723957

<u>751700376 22723957</u>

------

*"Borrower"* has the meaning assigned to such term in the introduction to this Agreement.

*"Borrower Information"* has the meaning assigned to such term in <u>Section 16.09</u>.

*"Borrowing"* has the meaning assigned to such term in <u>Section 2.01</u>.

*"Borrowing Base"* means, at any time, an amount equal 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;(a)the Aggregate Collateral Balance (excluding unfunded commitments pursuant to <u>clause (d)</u> of the definition thereof) of all Eligible Collateral Loans, *minus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)(i) during the Reinvestment Period, any Excess Concentration Amounts and (ii) after the Reinvestment Period, any Excess Concentration Amounts in existence on the last day of the Reinvestment Period.

*"Borrowing Base Calculation Statement"* means a statement in substantially the form attached to the form of Notice of Borrowing attached hereto as <u>Exhibit A</u>, as such form of Borrowing Base Calculation Statement may be modified by the Administrative Agent from time to time to the extent such form does not, in the good faith opinion of the Administrative Agent, accurately reflect the calculation of the Borrowing Base required hereunder, in each case, as notified to the Collateral Administrator.

*"Borrowing Date"* means the date of a Borrowing.

*"Business Day"* means any day other than a Saturday or Sunday; *provided* that days on which banks are authorized or required to close in New York, New York, Houston, Texas or Charlotte, North Carolina, in each case, shall not constitute Business Days.

*"Cash"* means Dollars immediately available on the day in question.

*"Certificated Security"* has the meaning assigned to such term in Section 8-102(a)(4) of the UCC.

*"Change in Law"* means (a) the adoption of any Law after the Closing Date, (b) any change in any Law or in the interpretation or application thereof by any Governmental Authority after the Closing Date or (c) compliance by any Lender (or, for purposes of <u>Section 2.09(b)</u>, by any lending office of such Lender or by such Lender's holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the Closing Date; *provided* that, notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements or directives thereunder or issued in connection therewith or in implementation thereof and (y) all requests, rules, guidelines, requirements 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 *"Change in Law"* hereunder regardless of the date of effectiveness.

*"Change of Control"* means, at any time, the occurrence of one of the following events: (1) the Parent fails to own, directly or indirectly, 100% of the equity interests of the Borrower free and clear of all Liens other than Permitted Liens at any time; or (2) the Collateral Manager ceases to directly or indirectly manage the assets of the Borrower.

*"Citibank"* means Citibank, N.A.

750499896 22723957

<u>751700376 22723957</u>

------

*"Clearing Agency"* means an organization registered as a "clearing agency" pursuant to Section 17A of the Exchange Act.

*"Clearing Corporation"* means each entity included within the meaning of "clearing corporation" under Section 8-102(a)(5) of the UCC.

*"Clearing Corporation Security"* means securities which are in the custody of or maintained on the books of a Clearing Corporation or a nominee subject to the control of a Clearing Corporation and, if they are Certificated Securities in registered form, properly endorsed to or registered in the name of the Clearing Corporation or such nominee.

*"Closing Date"* means November 22, 2022.

*"Code"* means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute.

*"Collateral"* has the meaning assigned to such term in <u>Section 7.01(a)</u>.

*"Collateral Administrator"* has the meaning assigned to such term in the introduction to this Agreement.

*"Collateral Agent"* has the meaning assigned to such term in the introduction to this Agreement.

*"Collateral Agent and Collateral Administrator Fee Letter"* means the fee letter setting forth the fees and other amounts payable by the Borrower to Citibank (for any of its capacities) and Virtus Group, LP in connection with the transactions contemplated by this Agreement and other Facility Documents.

*"Collateral Default Ratio"* means, on any date of determination, the percentage equivalent of a fraction (i) the numerator of which is equal to the sum for each Collateral Loan that became a Defaulted Collateral Loan after the Closing Date during the immediately prior 12-month period (or such shorter period as shall have elapsed since the Closing Date) of the product of (a) the Principal Balance of such Collateral Loan multiplied by (b) 1 minus the applicable Recovery Rate for each such Collateral Loan, and (ii) the denominator of which is equal to (a) the sum of the Principal Balances of all Eligible Collateral Loans as of the first day of each month during the immediately preceding 12 months (or such shorter period as shall have elapsed since the Closing Date), divided by (b) 12; *provided* that, for purposes of calculating the Collateral Default Ratio, (x) for any date of determination during the Ramp-Up Period, the denominator in the preceding clause (ii) shall be deemed to equal the Facility Amount then in effect, and (y) for any date of determination after the Ramp-Up Period, if the immediately prior 12-month period includes dates occurring during the Ramp-Up Period, the calculation solely with respect to the denominator shall be equal to the average Aggregate Principal Balances of all Eligible Collateral Loans as of the first day of each calendar month occurring after the Ramp-Up Period.

*"Collateral Interest Amount"* means, as of any date of determination, without duplication, the aggregate amount of Interest Proceeds that has been received or that is expected to be received according to the Related Documents (other than Interest Proceeds expected to be received from Defaulted Collateral Loans, Ineligible Collateral Loans or Interest Proceeds the Collateral Manager does not expect to be received on schedule), in each case during the Collection Period (and, if such Collection Period does not end on a Business Day, the next succeeding Business Day) in which such date of determination occurs.

750499896 22723957

<u>751700376 22723957</u>

------

*"Collateral Loan"* means a loan, debt obligation or debt security acquired by the Borrower.

*"Collateral Management Fees"* means, collectively, Senior Collateral Management Fees and Subordinated Collateral Management Fees.

*"Collateral Management Standard"* means, with respect to any Collateral Loans included in the Collateral, to service and administer such Collateral Loans in accordance with the Related Documents and all customary and usual servicing practices (a) which are consistent with the higher of: (i) the customary and usual servicing practices that a prudent loan investor or lender would use in servicing loans like the Collateral Loans for its own account, and (ii) the same care, skill, prudence and diligence with which the Collateral Manager services and administers loans for its own account or for the account of others with similar investment objectives and strategies; and (b) without regard to: (i) any relationship that the Collateral Manager or any Affiliate of the Collateral Manager may have with any Obligor or any Affiliate of any Obligor, (ii) the Collateral Manager's obligations to incur servicing and administrative expenses with respect to a Collateral Loan, (iii) the Collateral Manager's right to receive compensation for its services hereunder or with respect to any particular transaction, (iv) the ownership by the Collateral Manager or any Affiliate thereof of any retained interest or one or more loans of the same class as any Collateral Loans, (v) the ownership, servicing or management for others by the Collateral Manager of any other loans or property by the Collateral Manager, or (vi) any relationship that the Collateral Manager or any Affiliate of the Collateral Manager may have with any holder of other loans of the Obligor with respect to such Collateral Loans.

*"Collateral Manager"* has the meaning assigned to such term in the introduction to this Agreement.

*"Collateral Manager Expense Cap"* means, for any rolling twelve (12) month period, Collateral Manager Expenses in an amount equal to $100,000.

*"Collateral Manager Expenses"* means, for any Interest Accrual Period, the out-of-pocket expenses incurred by the Collateral Manager in connection with the Facility Documents.

*"Collateral Manager Termination Event"* means the occurrence of any of the events, acts or circumstances set forth in <u>Section 6.02</u>.

*"Collateral Manager Termination Notice"* has the meaning assigned to such term in <u>Section 6.02</u>.

*"Collateral Quality Test"* means a test that is satisfied if, as of any date of determination after the end of the Ramp-Up Period, in the aggregate, the Collateral Loans owned (or, in relation to a proposed purchase of a Collateral Loan, both owned and proposed to be owned) by the Borrower satisfy, or if not satisfy, maintain or improve, each of the tests set forth below, calculated, in each case, in accordance with <u>Section 1.04</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Weighted Average Spread Test;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Weighted Average Coupon Test;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Weighted Average Life Test; 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;(d)the Weighted Average EBITDA Test.

750499896 22723957

<u>751700376 22723957</u>

------

For the avoidance of doubt, the Collateral Quality Tests shall be deemed inapplicable during the Ramp-Up Period.

*"Collection Account"* has the meaning assigned to such term in <u>Section 8.02</u> and includes the Principal Collection Account and the Interest Collection Account.

*"Collection Date"* means the date on which the aggregate outstanding principal amount of the Advances have been repaid in full and all Interest and fees and all other Obligations (other than contingent indemnification and reimbursement obligations which are unknown, unmatured and/or for which no claim giving rise thereto has been asserted) have been paid in full, and the Borrower shall have no further right to request any additional Advances.

*"Collection Period"* means, with respect to any Payment Date, the period commencing the day immediately following the prior Collection Period (or on the Closing Date, in the case of the Collection Period relating to the first Payment Date) and ending eight (8) Business Days after the last day of the month or, in the case of the Collection Period immediately preceding the Final Maturity Date or the Collection Period immediately preceding an optional prepayment in whole of the Advances, ending on the Business Day preceding the Final Maturity Date or the date of such prepayment, respectively.

*"Collections"* means all cash collections, distributions, payments and other amounts received, and to be received, by the Borrower from any Person in respect of any Collateral Loans constituting Collateral, including all principal, interest, fees, distributions and redemption and withdrawal proceeds payable to the Borrower under or in connection with any such Collateral Loans and all Proceeds from any sale or disposition of any such Collateral Loans.

*"Commitment"* means, as to each Lender, the obligation of such Lender to make, on and subject to the terms and conditions hereof, Advances to the Borrower pursuant to <u>Section 2.01</u> in an aggregate principal amount at any one time outstanding for such Lender up to but not exceeding the amount set forth opposite the name of such Lender on <u>Schedule 1</u> or in the Assignment and Acceptance or Lender Joinder Agreement pursuant to which such Lender shall have assumed its Commitment, as applicable, as such amount may be reduced from time to time pursuant to <u>Section 2.06</u>, increased from time to time pursuant to <u>Section 2.18</u> or increased or reduced from time to time pursuant to assignments effected in accordance with <u>Section 16.06</u>.

*"Commitment Fees"* has the meaning assigned to such term in the Lender Fee Letter.

*"Commitment Termination Date"* means the last day of the Reinvestment Period.

*"Concentration Limitations"* means, as of any date of determination, the following limitations (calculated without duplication) as applied to the Aggregate Collateral Balance of the Eligible Collateral Loans (including, for Delayed Drawdown Collateral Loans and Revolving Collateral Loans, the unfunded commitments thereunder) owned (or, in relation to a proposed purchase of an Eligible Collateral Loan, proposed to be owned) by the Borrower, calculated as a percentage of (i) during the Ramp-Up Period, the Facility Amount then in effect and (ii) thereafter, the Aggregate Principal Balance of all Eligible Collateral Loans (including, for Delayed Drawdown Collateral Loans and Revolving Collateral Loans, the unfunded commitments thereunder) owned by the Borrower (after giving effect to any proposed purchase of Eligible Collateral Loans):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)not more than 5.00% may consist of Collateral Loans that are issued by a single Obligor and its Affiliates, except that up to 6.67% may consist of Collateral Loans issued by each of the three largest single Obligors and their respective Affiliates;

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)not more than 10.00% may consist of Collateral Loans that are issued by Obligors and their Affiliates that belong to any single GICS Industry Group Classification, except that (i) up to 25.00% may consist of Collateral Loans with Obligors and their Affiliates in the largest GICS Industry Group Classification and (ii) up to 15.00% may consist of Collateral Loans with Obligors and their Affiliates in each of the second and third largest GICS Industry Group Classifications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)not more than 10.00% may consist of Second Lien Loans and Split Lien Loans, collectively; *provided* that not more than 5.00% may consist of Second Lien Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)not more than 5.00% may consist of DIP Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)not more than 10.00% may consist of Collateral Loans whose Obligors are domiciled in Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)not more than 10.00% may consist of Partial PIK Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)not more than 20.00% may consist of Revolving Collateral Loans and Delayed Drawdown Collateral Loans, collectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)not more than 10.00% may consist of Discount Collateral Loans;

&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)not more than 25.00% may consist of Credit Improved Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)not more than 10.00% may consist of Collateral Loans that provide for payment of interest less frequently than quarterly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)not more than 3.00% may consist of Collateral Loans with attached equity kickers (which shall exclude equity co-investments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)except in the case of Haircut Collateral Loans, not more than 25.00% may consist of Collateral Loans whose Obligors have an EBITDA that is less than $10,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)except in the case of Haircut Collateral Loans, not more than 15.00% may consist of Collateral Loans that exceed one or more of the following limits: (i) the Obligor on such Collateral Loan is a Tier 1 Obligor and has (x) with respect to a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio greater than 5.00x, or (B) a Total Leverage Ratio greater than 7.00x, or (y) with respect to a Stretch Senior Loan, a Total Leverage Ratio greater than 6.00x; (ii) the Obligor on such Collateral Loan is a Tier 2 Obligor and has (x) with respect to a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio greater than 4.25x, or (B) a Total Leverage Ratio greater than 6.00x, or (y) with respect to a Stretch Senior Loan, a Total Leverage Ratio greater than 5.25x; or (iii) the Obligor on such Collateral Loan is a Tier 3 Obligor and has (x) with respect to a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio greater than 3.75x, or (B) a Total Leverage Ratio greater than 5.00x, or (y) with respect to a Stretch Senior Loan, a Total Leverage Ratio greater than 4.50x;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)not more than 15.00% may consist of Collateral Loans that, at the time of acquisition thereof by the Borrower or the Borrower's commitment to acquire the same, were LBO Loans; and

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)not more than 10.00% may consist of Fixed Rate Loans.

 *"Conforming Changes"* means, with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate", the definition of "Business Day", the definition of "U.S. Government Securities Business Day", the definition of "Interest Accrual 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, the applicability of <u>Section 2.09</u> and other technical, administrative or operational matters) that the Administrative Agent decides (in consultation with the Borrower) 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 decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides (in consultation with the Borrower) is reasonably necessary in connection with the administration of this Agreement and the other Facility Documents).

*"Connection Income Taxes"* means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

*"Constituent Documents"* means in respect of any Person, the certificate or articles of formation or organization, the limited liability company agreement, operating agreement, partnership agreement, joint venture agreement or other applicable agreement of formation or organization (or equivalent or comparable constituent documents) and other organizational documents and by-laws and any certificate of incorporation, certificate of formation, certificate of limited partnership and other agreement or similar instrument filed or made in connection with its formation or organization.

*"Contribution Notice"* has the meaning assigned to such term in <u>Section 10.05</u>.

*"Control"* means the direct or indirect possession of the power to direct or cause the direction of the management or policies of a Person, whether through ownership, by contract, arrangement or understanding, or otherwise. *"Controlled"* and *"Controlling"* have the meaning correlative thereto.

*"Covenant Lite Loan"* means a Collateral Loan that does not require the Obligor to comply with at least one of the following financial covenants during each financial covenant reporting period applicable to such Collateral Loan, whether or not any action by, or event relating to, the Obligor has occurred: maximum leverage, maximum senior leverage, maximum first lien leverage, minimum fixed charge coverage, minimum tangible net worth, minimum net worth, minimum debt service coverage, minimum interest coverage, maximum capital expenditures, minimum EBITDA, or other customary financial covenants; *provided* that, notwithstanding the foregoing, a Collateral Loan shall be deemed not to be a Covenant Lite Loan if the Related Documents with respect to such Collateral Loan contain a cross-default provision to, or such Collateral Loan is pari passu with, another loan of the related Obligor forming part of the same loan facility that requires such Obligor to comply with one or more of the foregoing financial covenants.

*"Coverage Test"* means each of (i) the Maximum Advance Rate Test and (ii) the Interest Coverage Ratio Test.

750499896 22723957

<u>751700376 22723957</u>

------

*"Covered Account"* means each of the Collection Account (including the Interest Collection Account and Principal Collection Account therein), the Payment Account, the Revolving Reserve Account and the Custodial Account.

*"Credit Improved Loan"* means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)with respect to any Defaulted Collateral Loan, after the date on which such loan became a Defaulted Collateral Loan (other than as a result of a Material Modification), (i) it is current on all required payments for a period of three months (if such loan pays monthly), two quarters (if such loan pays quarterly) or one year (if such loan pays semiannually) and (ii) it would satisfy the definition of Eligible Collateral Loan (other than <u>clause (k)</u> or <u>clause (dd)</u> thereof) if purchased at such time; 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;(b)with respect to any Collateral Loan which has been the subject of a Material Modification, either (i) after the date on which such loan became a Collateral Loan which is the subject of a Material Modification, (A) it is current on all required payments for a period of three months (if such loan pays monthly), two quarters (if such loan pays quarterly) or one year (if such loan pays semiannually) and (B) it would satisfy the definition of Eligible Collateral Loan (other than <u>clause (k)</u> thereof as a result of such Collateral Loan being subject to a Material Modification) if purchased at such time, or (ii) the Administrative Agent has consented in writing to such Collateral Loan no longer constituting a loan which has been the subject of a Material Modification hereunder.

*"Credit Improved Loan Collateral Loan Balance"* means, for each Credit Improved Loan constituting an Eligible Collateral Loan, at any time, the lesser of (a) such Credit Improved Loan's Principal Balance and (b) such Credit Improved Loan's Market Value.

*"Current Modified Loan"* means a Collateral Loan that as of the date such Collateral Loan is modified (A) has been current on all required payments for a period of three months (if such Collateral Loan pays monthly), two quarters (if such Collateral Loan pays quarterly) or one year (if such Collateral Loan pays semiannually) and (B) would satisfy the definition of Eligible Collateral Loan (other than clause (dd) thereof) if purchased on such modification date.

*"Custodial Account"* means the custodial account established pursuant to <u>Section 8.03(b)</u>.

*"Custodian"* has the meaning assigned to such term in the introduction to this Agreement.

*"Custodian Termination Notice"* is defined in <u>Section 14.05</u>.

*"Daily Simple SOFR"* 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; <u>provided</u>, 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.

*"Data File"* has the meaning assigned to such term in <u>Section 8.06(a)</u>.

*"Debt to Capitalization Ratio"* means, with respect to any Collateral Loan, the ratio of total indebtedness to total capitalization of the related Obligor as calculated by the Collateral Manager in good faith using information from and calculations consistent with the relevant

750499896 22723957

<u>751700376 22723957</u>

------

financial models, *pro forma* financial statements, compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Related Documents.

*"Debtor Relief Laws"* means the Bankruptcy Code, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect.

*"Default"* means any event or circumstance which, with the passage of time, the giving of notice, or both, would (if not cured or otherwise remedied during such time) constitute an Event of Default.

*"Defaulted Collateral Loan"* means any Collateral Loan as to which any of the following occurs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a default as to all or any portion of one or more payments of principal, interest or commitment fees has occurred (giving effect to any grace period applicable thereto but in no event exceeding ten (10) Business Days past the applicable due date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a default (other than a payment default described in <u>clause (a)</u> above) has occurred under the applicable Related Documents and for which the Borrower (or the administrative agent or required lenders pursuant to the Related Documents, as applicable) has elected to exercise any of its rights and remedies under such Related Documents (including, but not limited to, acceleration, foreclosing on collateral, or the imposition of default pricing for a period of greater than two months);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)except in the case of a DIP Loan, the related Obligor of such Collateral Loan is subject of an Insolvency Event (without giving effect to any grace period set forth in such definition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)any portion of principal and/or interest payable thereunder has been waived or forgiven (other than default interest) by the holders of such obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the Collateral Manager has reasonably determined in accordance with the Collateral Management Standard that such Collateral Loan is not collectible or should be placed on "non-accrual" status; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)a Material Modification (subject to <u>clause (i)</u> of the proviso contained in the definition thereof);

*provided* that a Collateral Loan that meets the criteria for a Credit Improved Loan shall no longer be characterized as a Defaulted Collateral Loan hereunder.

*"Defaulted Collateral Loan Balance"* means, for each Defaulted Collateral Loan, at any time, the lesser of (a) the current Market Value of such Defaulted Collateral Loan and (b) the product of (i) the Recovery Rate of such Defaulted Collateral Loan and (ii) the Principal Balance of such Defaulted Collateral Loan; *provided* that the Defaulted Collateral Loan Balance shall be zero if such loan (x) is a Defaulted Collateral Loan pursuant to the definition thereof for six (6) consecutive months or (y) is a Defaulted Collateral Loan pursuant to <u>clause (d)</u> of the definition thereof or pursuant to <u>clauses (b)</u> or <u>(e)</u> of the definition of "Material Modification"; *provided further* that any Defaulted Collateral Loan that meets the criteria to qualify as a Credit Improved Loan shall no longer be characterized as a Defaulted Collateral Loan and shall instead be characterized as a Credit Improved Loan; *provided further* that the Market Value of any Defaulted Collateral Loan determined under <u>clause (a)</u> shall be subject to the Administrative

750499896 22723957

<u>751700376 22723957</u>

------

Agent's right to challenge such value in its sole discretion; *provided further* that the Collateral Manager shall have the right to dispute such challenge by providing the Administrative Agent with an Appraisal (at the expense of the Borrower), which Appraisal shall constitute the Market Value of such Defaulted Collateral Loan from and after receipt of such Appraisal.

*"Defaulting Lender"* means, subject to <u>Section 2.16</u>, any Lender that (a) has failed to (i) fund all or any portion of its Advances (including its participation in a Swingline Advance) within two (2) Business Days of the date such Advances were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two (2) Business Days of the date when due, (b) has notified the Borrower or the Administrative Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund an Advance (including participation in a Swingline Advance) hereunder and states that such position is based on such Lender's determination that a condition precedent to funding (which condition precedent, together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three (3) Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (*provided* that such Lender shall cease to be a Defaulting Lender pursuant to this <u>clause (c)</u> upon receipt of such written confirmation by the Administrative Agent and the Borrower), or (d) has, or has a direct or indirect parent company that has, at any time after the Closing Date (i) become the subject of a proceeding under any Debtor Relief Law, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity or (iii) become the subject of a Bail-In Action; *provided* that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of <u>clauses (a)</u> through <u>(d)</u> above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to <u>Section 2.16(b)</u>) upon delivery of written notice of such determination to the Borrower and each Lender.

*"Delayed Drawdown Collateral Loan"* means a Collateral Loan that (a) requires (whether or not subject to satisfaction of certain conditions precedent in the applicable Related Documents) the Borrower to make one or more future advances to the Obligor under the Related Documents, (b) specifies a maximum amount that can be borrowed on one or more fixed borrowing dates, and (c) does not permit the re-borrowing of any amount previously repaid by the Obligor thereunder, *provided* that any such Collateral Loan will be a Delayed Drawdown Collateral Loan only to the extent of undrawn commitments and solely until all commitments by the Borrower to make advances on such Collateral Loan to the Obligor under the Related Documents expire or are terminated or are reduced to zero.

750499896 22723957

<u>751700376 22723957</u>

------

*"Deliver"* or *"Delivered"* or *"Delivery"* means the taking of the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)in the case of each Instrument, causing the Custodian to maintain continuous possession of such Instrument;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)in the case of each Certificated Security (other than a Clearing Corporation Security):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing the delivery of such Certificated Security to the Custodian (or, for any such items which are promissory notes or other evidence representing a loan obligation, the Document Custodian) by registering the same in the name of the Custodian or its affiliated nominee or by endorsing the same to the Custodian or in blank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to indicate continuously on its books and records that such Certificated Security is credited to the applicable Covered Account; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to maintain continuous possession of such Certificated Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)in the case of each Uncertificated Security (other than a Clearing Corporation Security):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing such Uncertificated Security to be continuously registered on the books of the issuer thereof to the Custodian; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to indicate continuously on its books and records that such Uncertificated Security is credited to the applicable Covered Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)in the case of each Clearing Corporation Security:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing the relevant Clearing Corporation to credit such Clearing Corporation Security to the securities account of the Custodian, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to indicate continuously on its books and records that such Clearing Corporation Security is credited to the applicable Covered Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)in the case of each security issued or guaranteed by the United States of America or agency or instrumentality thereof and that is maintained in book-entry records of a Federal Reserve Bank (*"FRB"*) (each such security, a *"Government Security"*):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing the creation of a Security Entitlement to such Government Security by the credit of such Government Security to the securities account of the Custodian at such FRB, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to indicate continuously on its books and records that such Government Security is credited to the applicable Covered Account;

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)in the case of each Security Entitlement not governed by <u>clauses (a)</u> through <u>(e)</u> above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing a Securities Intermediary (x) to indicate on its books and records that the underlying Financial Asset has been credited to the appropriate Covered Account, (y) to receive a Financial Asset from a Securities Intermediary or to acquire the underlying Financial Asset from a Securities Intermediary, and in either case, accepting it for credit to the appropriate Covered Account or (z) to become obligated under any other Law to credit the underlying Financial Asset to a Securities Intermediary's securities account,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing such Securities Intermediary to make entries on its books and records continuously identifying such Security Entitlement as belonging to the Custodian and continuously indicating on its books and records that such Security Entitlement is credited to one of the Covered Accounts, which shall at all times be a securities account, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to indicate continuously on its books and records that such Security Entitlement (or all rights and property of the Custodian representing such Security Entitlement) is credited to the applicable Covered Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)in the case of Cash or Money:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing the delivery of such Cash or Money to the Custodian,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;causing the Custodian to credit such Cash or Money to a "securities account" (as defined in Section 8-501(a) of the UCC), which may be a component account of the applicable Covered Account, in accordance with Article 9 of the UCC, pursuant to agreement by the Custodian to treat such Cash or Money as a Financial Asset, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) causing the Custodian to indicate continuously on its books and records that such Cash or Money is credited to the applicable Covered Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)with respect to such of the Collateral as constitutes an account or general intangible or is not otherwise described in the foregoing <u>clauses (a)</u> through <u>(g)</u>, causing to be filed with the Delaware Secretary of State a properly completed UCC financing statement that names the Borrower as debtor and the Collateral Agent as secured party and that describes such Collateral (which financing statement may have been previously filed) or any equivalent filing in any applicable jurisdiction; or

&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)in the case of each of <u>clauses (a)</u> through <u>(h)</u> above, such additional or alternative procedures as may hereafter become appropriate to perfect the security interest granted to the Collateral Agent hereunder in such items of the Collateral, consistent with Applicable Law.

In addition, the Collateral Manager on behalf of the Borrower will obtain any and all consents required by the Related Documents relating to any Instruments, accounts or general intangibles for the transfer of ownership and/or pledge hereunder (except to the extent that the requirement for such consent is rendered ineffective under Section 9-406 of the UCC).

750499896 22723957

<u>751700376 22723957</u>

------

*"Designation Date"* means, with respect to each Collateral Loan, the first date on which the Collateral Loan is included in the Borrowing Base, as referenced in a Borrowing Base Calculation Statement.

*"Determination Date"* means the last day of each Collection Period.

*"DIP Loan"* means an obligation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)obtained or incurred after the entry of an order of relief in a case pending under Chapter 11 of the Bankruptcy Code,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)to a debtor in possession as described in Chapter 11 of the Bankruptcy Code or a trustee (if appointment of such trustee has been ordered pursuant to Section 1104 of the Bankruptcy Code),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)on which the related Obligor is required to pay interest and/or principal on a current basis, 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;(d)approved by a Final Order or Interim Order of the bankruptcy court so long as such obligation is (A) fully secured by a lien on the debtor's otherwise unencumbered assets pursuant to Section 364(c)(2) of the Bankruptcy Code, (B) fully secured by a lien of equal or senior priority on property of the debtor estate that is otherwise subject to a lien pursuant to Section 364(d) of the Bankruptcy Code or (C) is secured by a junior lien on the debtor's encumbered assets (so long as such loan is fully secured based on the most recent current valuation or appraisal report, if any, of the debtor).

*"Discount Collateral Loan"* means any Collateral Loan having a purchase price of less than 95% of par.

*"Document Custodian"* means Citibank, N.A. when acting in the role of a custodian of the Related Documents hereunder.

*"Document Custodian Facilities"* means the office of the Document Custodian specified on <u>Schedule 5</u>.

*"Document Custodian Termination Notice"* is defined in <u>Section 13.05.</u>

*"Dollars"* and *"$"* mean lawful money of the United States of America.

*"Due Date"* means each date on which any payment is due on a Collateral Loan in accordance with its terms.

*"EBITDA"* means, with respect to any Relevant Test Period and any Collateral Loan, the meaning of the term "Adjusted EBITDA", the term "EBITDA" or any comparable definition in the Related Documents for such period and Collateral Loan (or, in the case of a Collateral Loan for which the Related Documents have not been executed, as set forth in the relevant marketing materials or financial model in respect of such Collateral Loan) as determined in the good faith discretion of the Collateral Manager, and, in any case that the term "Adjusted EBITDA", the term "EBITDA" or such comparable definition is not defined in such Related Documents, an amount, for the principal Obligor thereunder and any of its parents or subsidiaries that are obligated as guarantor pursuant to the Related Documents for such Collateral Loan (determined on a consolidated basis without duplication in accordance with GAAP (and also on a *pro forma* basis as determined in good faith by the Collateral Manager in case of any acquisitions)) equal to

750499896 22723957

<u>751700376 22723957</u>

------

earnings from continuing operations for such period *plus* interest expense, income taxes, unallocated depreciation and amortization for such period (to the extent deducted in determining earnings from continuing operations for such period), amortization of intangibles (including goodwill, financing fees and other capitalized costs), other non-cash charges and organization costs, extraordinary, one-time and/or non-recurring losses or charges, and any other item the Collateral Manager and the Administrative Agent deem to be appropriate. Notwithstanding the foregoing, in no event shall the EBITDA of an Obligor be based solely on prospective or modeled performance as opposed to historical performance (including pro forma calculations).

*"EEA Financial Institution"* means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any Person established in an EEA Member Country which is a parent of an institution described in <u>clause (a)</u> of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in <u>clauses (a)</u> or <u>(b)</u> of this definition and is subject to consolidated supervision with its parent.

*"EEA Member Country"* means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

*"EEA Resolution Authority"* 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.

 *"Eligible Collateral Loan"* means a Collateral Loan that meets each of the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is a First Lien Loan (including, for the avoidance of doubt, a Stretch Senior Loan), Split First Lien Loan, Split Lien Loan or Second Lien Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)at the time of acquisition thereof by the Borrower, was acquired for a purchase price of more than 85% of par;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)permits the purchase thereof by or assignment thereof to the Borrower and the pledge thereof to the Collateral Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)is denominated and payable solely in Dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the primary Obligor thereon (i.e., the Obligor under which the loan was principally underwritten) is domiciled in the United States (or any state, territory or possession thereof) or Canada (or any province thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)no portion thereof (including any conversion option, exchange option, warrant or other component thereof) is exchangeable or convertible into an Equity Security at the option of the related Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)is not an Equity Security or a component of an Equity Security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)at the time of acquisition thereof by the Borrower, is not the subject of an offer or call for redemption;

&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)does not constitute Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)does not subject the Borrower to withholding tax unless the related Obligor is required to make "gross-up" payments that ensure that the net amount actually

750499896 22723957

<u>751700376 22723957</u>

------

received by the Borrower (after payment of all taxes, whether imposed on such Obligor or the Borrower) will equal the full amount that the Borrower would have received had no such taxes been imposed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)at the time of acquisition thereof by the Borrower, is not a Defaulted Collateral Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)is not a non-cash paying PIK Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)is not a Zero Coupon Obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)is not a Covenant Lite Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)is not a Structured Finance Obligation, a bond, a synthetic security, a finance lease or chattel paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)provides for the full principal balance to be payable at or prior to its maturity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)is not a participation interest; *provided* that participation interests may be acquired by the Borrower within five (5) Business Days of the Closing Date if such participation interests are elevated to a full assignment within 75 calendar days of acquisition (and if not so elevated, such Collateral Loan shall no longer constitute an Eligible Collateral Loan until such Collateral Loan is elevated unless the Administrative Agent otherwise consents to a longer period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)has a remaining term to maturity of not more than seven (7) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)provides for payment of interest at least semi-annually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)at the time of acquisition thereof by the Borrower, the obligation of the related Obligor to pay principal and interest is not contingent on any material non-credit related risk (such as the occurrence of a catastrophe), as determined by the Collateral Manager in its sole discretion;

&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)is not an obligation (other than a Revolving Collateral Loan or a Delayed Drawdown Collateral Loan) pursuant to which any future advances or payments to the Obligor may be required to be made by 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;(v)will not cause the Borrower or the pool of Collateral to be required to be registered as an investment company under the Investment Company Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w)was underwritten based on the enterprise value of the applicable Obligor and not primarily the value of any real estate securing such Collateral Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)is not an interest only obligation (meaning, for the avoidance of doubt, that the obligations thereunder constitute only interest payments (e.g., an I/O strip and not an obligation with a bullet or balloon principal payment));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y)is not a letter of credit (other than a Revolving Collateral Loan that includes a letter of credit sub-facility as long as the Borrower is not the letter of credit issuer with respect thereto);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z)is in "registered" form for U.S. federal income tax purposes;

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa)promptly after the acquisition of such Collateral Loan, the Borrower has delivered to the Document Custodian or the Collateral Administrator, in accordance with the provisions of <u>Article XII</u>, (i) an executed copy of the Related Documents and (ii) the executed physical note evidencing such Collateral Loan (if any) or a copy of the assignment or transfer agreement pursuant to which the Borrower acquired its interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ab)at the time of the Designation Date for such Collateral Loan, has (i) a Tier 1 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of less than or equal to 5.50x and (B) a Total Leverage Ratio of less than or equal to 7.50x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of less than or equal to 6.50x; (ii) a Tier 2 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of less than or equal to 4.75x and (B) a Total Leverage Ratio of less than or equal to 6.50x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of less than or equal to 5.75x; or (iii) a Tier 3 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of less than or equal to 4.25x and (B) a Total Leverage Ratio of less than or equal to 5.50x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of less than or equal to 5.00x; *provided* that any such Collateral Loan that does not meet the criteria in this <u>clause (bb)</u> (but, for the avoidance of doubt, otherwise constitutes an Eligible Collateral Loan) at any time shall not be considered an Ineligible Collateral Loan, but shall be considered a Haircut Collateral Loan, hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ac)at the time of the Designation Date for such Collateral Loan, has an Obligor with an EBITDA of at least $5,000,000; *provided* that any such Collateral Loan that does not meet the criteria in this clause (cc) (but, for the avoidance of doubt, otherwise constitutes an Eligible Collateral Loan) at any time after such Designation Date shall not be considered an Ineligible Collateral Loan, but shall be considered a Haircut Collateral Loan hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ad)at the time of acquisition thereof by the Borrower, has not been more than thirty (30) days past due with respect to payments of either interest or principal on such Collateral Loan within the past twelve (12) months;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ae)the Related Documents for such Collateral Loan are governed by the Laws of the United States (or any state thereof) or Canada (or any province thereof); provided that if such Collateral Loan (i) is owed by an Obligor (other than a guarantor) who is domiciled (within the meaning of the *Civil Code of Quebec*) in the Province of Quebec or whose address (as indicated in the Related Documents) is located in the Province of Quebec, (ii) in respect of which the Related Documents provide that payments are to made to an address or a bank account located or maintained in the Province of Quebec or (iii) in respect of which the Related Documents governing the Collateral Loan contain a stipulation to the effect that such contract is governed by the laws of the Province of Quebec, then the Borrower shall have delivered security documentation reasonably satisfactory to the Administrative Agent; 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;(af)is not an obligation of an Obligor (or guarantor) engaged in (i) assault weapons or firearms manufacturing, (ii) payday lending or adult entertainment, (iii) the gaming industry (other than hospitality and/or resorts development, or the management thereof or Obligors with ancillary business units that provide services to the gaming industry but who are not primarily involved in such activities) or (iv) the growth and sale of marijuana.

750499896 22723957

<u>751700376 22723957</u>

------

*"Eligible Investments"* means any Dollar investment that, at the time it is Delivered (directly or through an intermediary or bailee), is Cash or one or more of the following obligations or securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)direct interest bearing obligations of, and interest bearing obligations guaranteed as to timely payment of principal and interest by, the United States or any agency or instrumentality of the United States, the obligations of which are backed by the full faith and credit of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)demand or time deposits in, certificates of deposit of, bank deposit products, demand notes of, or bankers' acceptances issued by any depository institution or trust company organized under the Laws of the United States or any State thereof (including any federal or state branch or agency of a foreign depository institution or trust company) and subject to supervision and examination by federal and/or state banking authorities (including, if applicable, the Collateral Agent, the Custodian, the Collateral Administrator or the Administrative Agent or any agent thereof acting in its commercial capacity); *provided* that the short-term unsecured debt obligations of such depository institution or trust company at the time of such investment, or contractual commitment providing for such investment, are rated at least "A-1" by S&P and "P-1" by Moody's;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)commercial paper that (i) is payable in Dollars and (ii) is rated at least "A-1" by S&P and "P-1" by Moody's; 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;(d)units of money market funds having a rating of the Highest Required Investment Category from each of S&P and Moody's.

No Eligible Investment shall have an "f," "r," "p," "pi," "q," "sf" or "t" subscript affixed to its S&P rating. Any such investment may be made or acquired from or through the Collateral Agent or the Administrative Agent or any of their respective Affiliates, or any Person for whom the Collateral Agent, the Administrative Agent, the Custodian, the Collateral Administrator or any of their respective Affiliates provides services and receives compensation (so long as such investment otherwise meets the applicable requirements of the foregoing definition of Eligible Investment at the time of acquisition) or acts as offeror of; *provided* that, notwithstanding the foregoing <u>clauses (a)</u> through <u>(d)</u>, Eligible Investments may only include obligations or securities that constitute cash equivalents for purposes of the rights and assets in paragraph (c)(8)(i)(B) of the exclusions from the definition of "covered fund" for purposes of the Volcker Rule. The Collateral Agent, the Collateral Administrator, Custodian and Document Custodian shall have no obligation to determine or oversee compliance with the foregoing or to determine whether an investment is an "Eligible Investment".

*"Engagement Letter"* means that certain engagement letter, dated as of October 11, 2022, by and between Main Street Capital Corporation and Truist Securities, Inc.

*"Equity Security"* means any stock or similar security, certificate of interest or participation in any profit sharing agreement, reorganization certificate or subscription, transferable share, voting trust certificate or certificate of deposit for an equity security, limited partnership interest, interest in a joint venture, or certificate of interest in a business trust; any security future on any such security; or any security convertible, with or without consideration into such a security, or carrying any warrant or right to subscribe to or purchase such a security; or any such warrant or right.

*"ERISA"* means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

750499896 22723957

<u>751700376 22723957</u>

------

*"ERISA Event"* means (a) any "reportable event", as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the thirty day notice requirement is waived); (b) the failure with respect to any Plan to satisfy the "minimum funding standard" (as defined in Section 412 of the Code or Section 302 of ERISA); (c) the filing pursuant to Section 412(c) of the Code or Section 302 of ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) a determination that any Plan is, or is expected to be, in "at risk" status (as defined in Section 430 of the Code or Section 303 of ERISA); (e) the incurrence by the Borrower or any member of its ERISA Group of any material liability under Title IV of ERISA with respect to the termination of any Plan; (f) (i) the receipt by the Borrower or any member of its ERISA Group from the PBGC of a notice of determination that the PBGC intends to seek termination of any Plan or to have a trustee appointed for any Plan under Section 4041(c) of ERISA, or (ii) the filing by the Borrower or any member of its ERISA Group of a notice of intent to terminate any Plan; (g) the incurrence by the Borrower or any member of its ERISA Group of any material liability (i) with respect to a Plan pursuant to Sections 4063 and 4064 of ERISA, (ii) with respect to a facility closing pursuant to Section 4062(e) of ERISA, or (iii) with respect to the withdrawal or partial withdrawal from any Multiemployer Plan; (h) the receipt by the Borrower or any member of its ERISA Group of any notice concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, in endangered status or critical status, within the meaning of Section 432 of the Code or Section 305 of ERISA or is or is expected to be insolvent, within the meaning of Title IV of ERISA; or (i) the failure of the Borrower or any member of its ERISA Group to make any required contribution to a Multiemployer Plan.

*"ERISA Group"* means, with respect to any Person, each controlled group of corporations or trades or businesses (whether or not incorporated) under common control that is treated as a single employer under Section 414(b) or (c) of ERISA or, for purposes of Section 302 of ERISA or Section 412(m) or (o) of the Code, with such Person.

*"Erroneous Payment"* has the meaning assigned to it in Section 12.07(a).

*"Erroneous Payment Deficiency Assignment"* has the meaning assigned to it in Section 12.07(d).

*"Erroneous Payment Impacted Class"* has the meaning assigned to it in Section 12.07(d).

*"Erroneous Payment Return Deficiency"* has the meaning assigned to it in Section 12.07(d).

*"Erroneous Payment Subrogation Rights"* has the meaning assigned to it in Section 12.07(d).

*"EU Bail-In Legislation Schedule"* means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

*"Event of Default"* means the occurrence of any of the events, acts or circumstances set forth in <u>Section 6.01</u>.

*"Excess Concentration Amount"* means, at any time in respect of which any one or more of the Concentration Limitations are exceeded, the portions (calculated by the Collateral Manager without duplication) of the Aggregate Collateral Balance of each Eligible Collateral Loan that cause such Concentration Limitations to be exceeded; *provided* that (i) any Excess Concentration Amount related to <u>clause (l)</u> of the definition of Concentration Limitations shall be calculated as the product of (a) the portions (calculated without duplication) of the Aggregate Collateral Balance of each Eligible Collateral Loan that causes such Concentration Limitation to

750499896 22723957

<u>751700376 22723957</u>

------

be exceeded, *times* (b) 1 *minus* the Recovery Rate applicable to each such Collateral Loan and (ii) any Excess Concentration Amount related to clause (m) of the definition of Concentration Limitation shall be calculated as the product of (a) the portions (calculated without duplication) of the Aggregate Collateral Balance of each Eligible Collateral Loan that causes such Concentration Limitation to be exceeded, *times* (b) 1 *minus* the lower of (x) 90% or (y) the Market Value applicable to each such Collateral Loan.

*"Exchange Act"* means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder, all as from time to time in effect, or any successor law, rules or regulations, and any reference to any statutory or regulatory provision shall be deemed to be a reference to any successor statutory or regulatory provision.

*"Excluded Taxes"* means any of the following Taxes imposed on or with respect to a Secured Party or required to be withheld or deducted from a payment to a Secured Party: (a) Taxes imposed on or measured by a Secured Party's net income (however denominated), franchise Taxes imposed on a Secured Party, and branch profits Taxes imposed on a Secured Party, in each case, (i) by the jurisdiction (or any political subdivision thereof) under the Laws of which such Secured Party is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located or (ii) that are Other Connection Taxes, (b) in the case of any Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender, with respect to any applicable interest in Advances or Commitments, pursuant to a Law in effect on the date on which (i) such Lender becomes a party hereto (other than pursuant to an assignment requested by the Borrower under <u>Section 2.17</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section 16.03(h)</u>, 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 Secured Party's failure to comply with <u>Section 16.03(g)</u>, and (d) U.S. federal withholding Taxes imposed under FATCA.

*"Facility Amount"* means (a) on or prior to the Commitment Termination Date, $240,000,000 (as such amount may be reduced from time to time pursuant to <u>Section 2.06</u> or increased from time to time in accordance with <u>Section 2.18</u>) and (b) following the Commitment Termination Date, the outstanding principal balance of all the Advances.

*"Facility Amount Increase"* means an increase in the Facility Amount pursuant to <u>Section 2.18</u>.

*"Facility Amount Increase Agreement"* has the meaning assigned to such term in <u>Section 2.18</u>.

*"Facility Amount Increase Request"* has the meaning assigned to such term in <u>Section 2.18</u>.

*"Facility Documents"* means this Agreement, the Purchase and Contribution Agreement, the Account Control Agreement, the Fee Letters, and any other security agreements and other instruments entered into or delivered by or on behalf of the Borrower pursuant to <u>Section 5.01(c)</u> to create, perfect or otherwise evidence the Collateral Agent's security interest in the Collateral.

*"FATCA"* 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, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any

750499896 22723957

<u>751700376 22723957</u>

------

intergovernmental agreement, treaty or convention among Governmental Authorities entered into in connection with the implementation of the foregoing.

*"Federal Funds Rate"* means, for any period, a fluctuating interest rate *per annum* equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it; *provided* that, if at any time a Lender is borrowing overnight funds from a Federal Reserve Bank that day, the Federal Funds Rate for such Lender for such day shall be the average rate *per annum* at which such overnight borrowings are made on that day as promptly reported by such Lender to the Borrower and the Agents in writing. Each determination of the Federal Funds Rate by a Lender pursuant to the foregoing proviso shall be conclusive and binding except in the case of manifest error. Notwithstanding anything herein to the contrary, in no event shall the Federal Funds Rate be less than 0.00%.

*"Fee Letters"* means the Lender Fee Letter and the Collateral Agent and Collateral Administrator Fee Letter.

*"Final Maturity Date"* means the earlier of (a) the second anniversary of the Scheduled Reinvestment Period End Date (or such later date as may be agreed by the Borrower and each of the Lenders and notified in writing to the Agents) or (b) the date of the termination of the Commitments and acceleration of the Obligations pursuant to <u>Section 6.01</u>.

*"Final Order"* means an order, judgment, decree or ruling the operation or effect of which has not been stayed, reversed or amended and as to which order, judgment, decree or ruling (or any revision, modification or amendment thereof) the time to appeal or to seek review or rehearing has expired and as to which no appeal or petition for review or rehearing was filed or, if filed, remains pending.

*"Financial Asset"* has the meaning assigned to such term in Section 8-102(a)(9) of the UCC.

 *"First Lien Loan"* means any Collateral Loan (for purposes of this definition, a *"loan"*) that meets the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)is not (and is not expressly permitted by its terms to become) subordinate in right of payment to any other obligation for borrowed money of the Obligor of such loan, unless such loan is a Split First Lien Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)is secured by a valid first priority perfected Lien in, to or on specified collateral (unless such loan is a Split Lien Loan) securing the Obligor's obligations under such loan (whether or not such loan is also secured by any lower priority Lien on other collateral), but subject to purchase money Liens and customary Liens for taxes or regulatory charges not then due and payable and other permitted Liens under the Related Documents; *provided* that such permitted Liens do not directly secure indebtedness for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)is secured, pursuant to such first priority perfected Lien (unless such loan is a Split Lien Loan), by collateral having a value (determined as set forth below) that is not less than the Principal Balance of such loan *plus* the aggregate Principal Balances of all other loans of equal seniority secured by a first Lien in the same collateral; and

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)is not a loan which is secured solely or primarily by the common stock of its Obligor or any of its Affiliates;

*provided* that the limitation set forth in clause (d) of this definition shall not apply with respect to a Collateral Loan made to a parent entity that is secured solely or primarily by the stock of one or more subsidiaries of such parent entity to the extent that either (i) in the Collateral Manager's judgment, the applicable Related Documents of such Collateral Loan limit the activities of such Obligor or such subsidiary, as applicable, in such a manner so as to provide a reasonable expectation that (x) cash flows from such Obligor or from such subsidiary and such Obligor, as applicable, are sufficient to provide debt service on such Collateral Loan and (y) assets of such Obligor or of such subsidiary and such Obligor, as applicable, would be available to repay principal of and interest on such Collateral Loan in the event of the enforcement of such Related Documents or (ii) the granting by any such subsidiary of a Lien on its own property would violate law or regulations applicable to such subsidiary (whether the obligation secured is such Collateral Loan or any other similar type of indebtedness owing to third parties); *provided* that (i) neither a First Lien/Last Out Loan nor a Split Lien Loan shall constitute a First Lien Loan and (ii) a Split First Lien Loan and Stretch Senior Loan shall constitute a First Lien Loan; *provided, however,* that, for purposes of determining the applicable Advance Rate for a Stretch Senior Loan (or portion thereof), such Advance Rate shall be determined in accordance with the definition of Stretch Senior Loan.

The determination as to whether <u>clause (c)</u> of this definition is satisfied shall be based on both (a) an analysis of the enterprise value (including, without limitation, its general financial condition, ability to generate cash flow available for debt service and other demands for that cash flow) of the related Obligor by the Collateral Manager or an Appraisal or other valuation (which may be an internal Appraisal or valuation performed by the Collateral Manager) performed on or about the date of acquisition by the Borrower or of the most recent restructuring of such Collateral Loan, and (b) the Collateral Manager's judgment at the time such Collateral Loan is acquired by the Borrower.

*"First Lien/Last Out Loan"* means a Collateral Loan (other than a Split First Lien Loan or a Split Lien Loan) that would constitute a First Lien Loan (other than by operation of the proviso in the definition of such term) but that, in the case of an event of default under the applicable Related Document, will be paid after one or more tranches of first lien loans issued by the same Obligor have been paid in full in accordance with a specified waterfall of payments.

*"Fixed Charge Coverage Ratio"* means, with respect to any Collateral Loan for any Relevant Test Period, the meaning of "Fixed Charge Coverage Ratio" or any comparable term relating to the ratio of fixed charges to EBITDA defined in the Related Documents for such Collateral Loan, and in any case that "Fixed Charge Coverage Ratio" or such comparable term is not defined in such Related Documents, the ratio of (a) fixed charges to (b) EBITDA as calculated by the Collateral Manager in good faith using information from and calculations consistent with the relevant financial models, *pro forma* financial statements, compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Related Documents.

*"Fixed Rate Loan"* means any Collateral Loan that bears a fixed rate of interest.

*"Floating Rate Loan"* means any Collateral Loan that bears a floating rate of interest.

*"Floor"* means a rate of interest equal to 0.00%.

750499896 22723957

<u>751700376 22723957</u>

------

*"Floor Loan"* means, as of any date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a Floating Rate Loan (1) for which the Related Documents provide for a SOFR rate option (or other applicable benchmark rate) and that such SOFR rate (or other applicable benchmark rate) is calculated as the greater of a specified "floor" rate *per annum* and the SOFR rate (or other applicable benchmark rate) for the applicable interest period and (2) that, as of such date, bears interest based on such SOFR rate option (or other applicable benchmark rate), but only if as of such date the SOFR rate (or other applicable benchmark rate) for the applicable interest period is less than such floor rate; 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;(b)a Floating Rate Loan (1) for which the Related Documents provide for a base or prime rate option and such base or prime rate is calculated as the greater of a specified "floor" rate *per annum* and the base or prime rate for the applicable interest period and (2) that, as of such date, bears interest based on such base or prime rate option, but only if as of such date the base or prime rate for the applicable interest period is less than such floor rate.

 *"FRB"* has the meaning assigned to such term in the definition of Deliver.

*"Fronting Exposure"* means, at any time there is a Defaulting Lender, such Defaulting Lender's Percentage of the amount of Swingline Advances other than Swingline Advances as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders, repaid by the Borrower or for which cash collateral or other credit support acceptable to the Swingline Lender shall have been provided in accordance with the terms hereof.

*"Fundamental Amendment"* means any amendment, modification, waiver or supplement of or to this Agreement that would (a) increase or extend the term of the Commitments or change the Final Maturity Date (other than an increase of the Commitment of a particular Lender or the addition of a new Lender agreed to by the relevant Lender), (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, (f) alter the terms of <u>Section 9.01</u> or <u>Section 16.01(b)</u>, (g) modify the definition of the terms "Majority Lenders", "Required Lenders", "Maximum Available Amount", "Borrowing Base", "Maximum Advance Rate Test", "Maximum Advance Rate Default Test" or "Minimum Equity Amount"; (h) 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 or (i) extend the Reinvestment Period.

*"GAAP"* means generally accepted accounting principles in effect from time to time in the United States.

*"GICS"* means, as of any date, the most recently published Global Industry Classification Standard.

*"GICS Industry Group Classification"* means any industry group classification within GICS set forth in <u>Schedule 4</u> hereto, as updated and amended from time to time.

*"Government Security"* has the meaning assigned to such term in the definition of Deliver.

*"Governmental Authority"* means any nation or government, any state, province, territory or other political subdivision thereof, any agency, authority, instrumentality, regulatory body,

750499896 22723957

<u>751700376 22723957</u>

------

administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other Person exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government, including the Securities and Exchange Commission, the stock exchanges, any Federal, state, territorial, county, municipal or other government or governmental agency, arbitrator, board, body, branch, bureau, commission, court, department, instrumentality, master, mediator, panel, referee, system or other political unit or subdivision or other Person of any of the foregoing, whether domestic or foreign.

*"Governmental Authorizations"* means all franchises, permits, licenses, approvals, consents and other authorizations of all Governmental Authorities.

*"Governmental Filings"* means all filings, including franchise and similar tax filings, and the payment of all fees, assessments, interests and penalties associated with such filings with all Governmental Authorities.

*"Haircut Collateral Loan"* means, at any time without duplication, (x) any Collateral Loan that had satisfied <u>clause (cc)</u> of the definition of Eligible Collateral Loan on the related Designation Date, but at any such time after the related Designation Date is no longer satisfying <u>clause (cc)</u> of the definition of Eligible Collateral Loan or (y) any Collateral Loan that at any time does not satisfy <u>clause (bb)</u> of the definition of Eligible Collateral Loan.

*"Haircut Collateral Loan Balance"* means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;for each First Lien Loan, Split First Lien Loan or Split Lien Loan that constitutes a Haircut Collateral Loan solely as a result of the failure to satisfy <u>clause (bb)</u> of the definition of Eligible Collateral Loan, at any time, the lesser of (i) the current Market Value of such Haircut Collateral Loan, and (ii) the product of (x) the Principal Balance of such Haircut Collateral Loan and (y) 1 *minus* (I) for a Haircut Level 1 Collateral Loan, 10%, (II) for a Haircut Level 2 Collateral Loan, 20%, (III) for a Haircut Level 3 Collateral Loan, 35% and (IV) for a Haircut Level 4 Collateral Loan, 50%; *provided* that for each Second Lien Loan that constitutes a Haircut Collateral Loan, at any time, the lesser of (i) the current Market Value of such Haircut Collateral Loan and (ii) the product of (x) the Principal Balance of such Haircut Collateral Loan and (y) 1 *minus* (I) for a Haircut Level 1 Collateral Loan, a Haircut Level 2 Collateral Loan or a Haircut Level 3 Collateral Loan, 50% and (II) for a Haircut Level 4 Collateral Loan, 70%, 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;(b) &nbsp;&nbsp;&nbsp;&nbsp;if such Collateral Loan constitutes a Haircut Collateral Loan solely as a result of the failure to satisfy <u>clause (cc)</u> of the definition of Eligible Collateral Loan, at any time, the lesser of (i) the current Market Value of such Haircut Collateral Loan, and (ii) the product of (x) the Principal Balance of such Haircut Collateral Loan and (y) the Recovery Rate for such Collateral Loan.

Any Collateral Loan that constitutes a Haircut Collateral Loan as a result of the failure to satisfy both <u>clauses (bb)</u> and <u>(cc)</u> of the definition of Eligible Collateral Loan shall have its Haircut Collateral Loan Balance calculated in accordance with clause (b) above.

*"Haircut Level 1 Collateral Loan"* means a Haircut Collateral Loan that is 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;(i) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 1 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 5.50x but less than or equal to 6.00x and (B) a Total Leverage Ratio of greater than 7.50x but less than or equal to 8.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 6.50x but less than or equal to 7.00x;

750499896 22723957

<u>751700376 22723957</u>

------

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 2 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 4.75x but less than or equal to 5.25x and (B) a Total Leverage Ratio of greater than 6.50x but less than or equal to 7.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 5.75x but less than or equal to 6.25x; or

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 3 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 4.25x but less than or equal to 4.75x and (B) a Total Leverage Ratio of greater than 5.50x but less than or equal to 6.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 5.00x but less than or equal to 5.50x.

*"Haircut Level 2 Collateral Loan"* means a Haircut Collateral Loan that is 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;(i) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 1 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 6.00x but less than or equal to 6.50x and (B) a Total Leverage Ratio of greater than 8.00x but less than or equal to 8.50x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 7.00x but less than or equal to 7.50x;

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 2 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 5.25x but less than or equal to 5.75x and (B) a Total Leverage Ratio of greater than 7.00x but less than or equal to 7.50x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 6.25x but less than or equal to 6.75x; or

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 3 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 4.75x but less than or equal to 5.25x and (B) a Total Leverage Ratio of greater than 6.00x but less than or equal to 6.50x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 5.50x but less than or equal to 6.00x.

*"Haircut Level 3 Collateral Loan"* means a Haircut Collateral Loan that is 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;(i) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 1 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 6.50x but less than or equal to 7.00x and (B) a Total Leverage Ratio of greater than 8.50x but less than or equal to 9.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 7.50x but less than or equal to 8.00x;

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 2 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 5.75x but less than or equal to 6.25x and (B) a Total Leverage Ratio of greater than 7.50x but less than or equal to 8.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 6.75x but less than or equal to 7.25x; or

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 3 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 5.25x but less than or equal to 5.75x and (B) a Total Leverage Ratio of greater than 6.50x but less than or equal to 7.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 6.00x but less than or equal to 6.50x.

*"Haircut Level 4 Collateral Loan"* means a Haircut Collateral Loan that is to:

750499896 22723957

<u>751700376 22723957</u>

------

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 1 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 7.00x and (B) a Total Leverage Ratio of greater than 9.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 8.00x;

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 2 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 6.25x and (B) a Total Leverage Ratio of greater than 8.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 7.25x; or

&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) &nbsp;&nbsp;&nbsp;&nbsp;a Tier 3 Obligor with (x) in respect of a Collateral Loan other than a Stretch Senior Loan, (A) a Senior Leverage Ratio of greater than 5.75x and (B) a Total Leverage Ratio of greater than 7.00x, or (y) in respect of a Stretch Senior Loan, a Total Leverage Ratio of greater than 6.50x.

*"Highest Required Investment Category"* means (a) with respect to ratings assigned by Moody's, "Aa2" or "P-1" for one month instruments, "Aa2" and "P-1" for three month instruments, "Aa3" and "P-1" for six month instruments and "Aa2" and "P-1" for instruments with a term in excess of six months and (b) with respect to rating assigned by S&P, "A-1" for short-term instruments and "A" for long-term instruments.

*"Indemnified Party"* has the meaning assigned to such term in <u>Section 16.04(b)</u>.

*"Indemnified Taxes"* means (a) Taxes other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Facility Document and (b) to the extent not otherwise described in <u>clause (a)</u>, Other Taxes.

*"Independent Accountants"* has the meaning assigned to such term in <u>Section 8.08</u>.

*"Independent Manager"* means a natural Person who, (A) for the five-year period prior to his or her appointment as Independent Manager, has not been, and during the continuation of his or her service as Independent Manager is not: (i) an employee, director, stockholder, member, manager, partner or officer of the Borrower, the Parent or any of their respective Affiliates (other than his or her service as an Independent Manager of the Borrower, the Parent or other Affiliates that are structured to be "bankruptcy remote"); (ii) a customer or supplier of the Borrower, the Parent or any of their respective Affiliates (other than his or her service as an Independent Manager of the Borrower, the Parent or any such Affiliate); (iii) a Person controlling or under common control with any partner, shareholder, member, manager, Affiliate or supplier of the Borrower, the Parent or any Affiliate thereof or (iv) any member of the immediate family of a Person described in <u>clauses (i)</u>, <u>(ii)</u> or <u>(iii)</u>; *provided* that an independent manager may serve in similar capacities for other special purpose entities established from time to time by Affiliates of the Borrower or the Parent and (B) has, (i) prior experience as an Independent Manager for a corporation or limited liability company whose charter documents required the unanimous consent of all Independent Managers thereof before such corporation or limited liability company could consent to the institution of bankruptcy or insolvency proceedings against it or could file a petition seeking relief under any Applicable Law relating to bankruptcy and (ii) at least three years of employment experience with one or more Persons that provide, in the ordinary course of their respective businesses, advisory, management or placement services to issuers of securitization or structured finance instruments, agreements or securities.

 *"Ineligible Collateral Loan"* means, at any time, a Collateral Loan or any portion thereof, that fails to satisfy any criteria of the definition of Eligible Collateral Loan as of the date when such criteria are applicable; it being understood that such criteria in the definition of

750499896 22723957

<u>751700376 22723957</u>

------

Eligible Collateral Loan that are specified to be applicable only as of the date of acquisition of such Collateral Loan shall not be applicable after the date of acquisition of such Collateral Loan.

*"Insolvency Event"* means, with respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of such Person or any substantial part of its property in an involuntary case under the Bankruptcy Code or any other applicable insolvency Law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or ordering the winding-up or liquidation of such Person's affairs, and such decree or order shall remain unstayed and in effect for a period of sixty consecutive days; or (b) the commencement by such Person of a voluntary case under the Bankruptcy Code or any other applicable insolvency Law now or hereafter in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under any such Law, or the consent by such Person to the appointment of or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial part of its property, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any of the foregoing.

*"Instrument"* has the meaning assigned to such term in Section 9-102(a)(47) of the UCC.

*"Interest"* means, for each day during an Interest Accrual Period, the sum of the products (for each day during such Interest Accrual Period) of:

![image_0.jpg](image_0.jpg)

where:

IR&nbsp;&nbsp;&nbsp;&nbsp;=&nbsp;&nbsp;&nbsp;&nbsp;the Interest Rate for such Interest Accrual Period;

P&nbsp;&nbsp;&nbsp;&nbsp;=&nbsp;&nbsp;&nbsp;&nbsp;the principal amount of the Advances outstanding on such day; and

D&nbsp;&nbsp;&nbsp;&nbsp;=&nbsp;&nbsp;&nbsp;&nbsp;360.

*"Interest Accrual Period"* means (a) with respect to the first Payment Date, the period from and including the Closing Date to and including the last day of the calendar month preceding the first Payment Date and (b) with respect to any subsequent Payment Date, the period commencing on the first day of the calendar month in which the preceding Payment Date occurred and ending on the last day of the calendar month immediately preceding the month in which such Payment Date occurs; *provided*, that the final Interest Accrual Period hereunder shall end on and include the day prior to the payment in full of the Advances hereunder.

*"Interest Collection Account"* has the meaning assigned to such term in <u>Section 8.02(a)</u>.

*"Interest Coverage Ratio"* means, on any Monthly Reporting Date, the percentage equal 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;(a)an amount equal to the Collateral Interest Amount at such time; *divided by*

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the amount payable on the Payment Date immediately following such date of determination, in each case pursuant to <u>Section 9.01(a)(i)(A)</u> through <u>(E)</u>.

*"Interest Coverage Ratio Test"* means a test that will be satisfied on any Monthly Reporting Date if the Interest Coverage Ratio is greater than or equal to 125%; *provided* that the Interest Coverage Ratio Test shall be deemed to be satisfied on any day prior to the initial Advance hereunder.

*"Interest Proceeds"* means, with respect to any Collection Period or the related Determination Date, without duplication, the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)all payments of interest and other income received in cash by the Borrower during such Collection Period on the Collateral Loans (including interest and other income received in cash on Ineligible Collateral Loans and accrued interest received in cash in connection with a sale thereof during such Collection Period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)all principal and interest payments received by the Borrower during such Collection Period on Eligible Investments purchased with Interest Proceeds and all interest payments received by the Borrower during such Collection Period on Eligible Investments purchased with amounts credited to the Revolving Reserve Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)all amendment and waiver fees, late payment fees (including compensation for delayed settlement or trades), and all protection fees and other fees and commissions received by the Borrower during such Collection Period, unless the Collateral Manager notifies the Agents before such Determination Date that the Collateral Manager in its sole discretion has determined that such payments are to be treated as Principal Proceeds; 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;(d)commitment fees, facility fees, anniversary fees, ticking fees and other similar fees received by the Borrower during such Collection Period unless the Collateral Manager notifies the Agents before such Determination Date that the Collateral Manager in its sole discretion has determined that such payments are to be treated as Principal Proceeds;

*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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;as to any Defaulted Collateral Loan (and only so long as it remains a Defaulted Collateral Loan), any amounts received in respect thereof will constitute Principal Proceeds (and not Interest Proceeds) until the aggregate of all Collections in respect thereof since it became a Defaulted Collateral Loan equals the Principal Balance of such Defaulted Collateral Loan at the time as of which it became a Defaulted Collateral Loan and all amounts received in excess thereof will constitute Interest Proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;any amounts received in respect of any Equity Security that was received in exchange for a Defaulted Collateral Loan will constitute Principal Proceeds (and not Interest Proceeds) until the aggregate of all collections in respect of such Equity Security equals the outstanding Principal Balance of the related Collateral Loan, at the time it became a Defaulted Collateral Loan, for which such Equity Security was received in exchange; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&nbsp;&nbsp;&nbsp;all Cash received as equity contributions from the Parent will constitute Principal Proceeds unless specified by the Collateral Manager pursuant to <u>Section 10.05</u>.

750499896 22723957

<u>751700376 22723957</u>

------

*"Interest Rate"* means, for any Interest Accrual Period, an interest rate *per annum* equal to (a) at the election of the Administrative Agent or Required Lenders, at any time an Event of Default has occurred and is continuing (and has not otherwise been waived by the Lenders pursuant to the terms hereof), the Base Rate *plus* the Applicable Margin, (b) with respect to Swingline Advances, the Base Rate *plus* the Applicable Margin or (c) in all other cases, subject to <u>Section 2.11</u>, Adjusted Term SOFR (or, if a Benchmark Replacement has occurred, the then-applicable Benchmark) *plus* the Applicable Margin.

*"Interim Order"* means an order, judgment, decree or ruling entered after notice and a hearing conducted in accordance with Bankruptcy Rule 4001(c) granting interim authorization, the operation or effect of which has not been stayed, reversed or amended.

*"Investment Company Act"* means the Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.

*"Law"* means any action, code, consent decree, constitution, decree, directive, enactment, finding, guideline, law, injunction, interpretation, judgment, order, ordinance, policy statement, proclamation, promulgation, regulation, requirement, rule, rule of law, treaty, rule of public policy, settlement agreement, statute, or writ, of any Governmental Authority, or any particular section, part or provision thereof.

*"LBO Loan"* means a Collateral Loan (a) the proceeds of which are used to finance the acquisition of the Obligor by the sponsor thereof and (b) that has an Obligor with equity of less than 25% of its total capitalization at the time of such acquisition, as determined by the Collateral Manager in its commercially reasonable discretion.

*"Lender Fee Letter"* means that certain fee letter, dated as of the Closing Date, by and among the Lenders and the Borrower.

*"Lender Joinder Agreement"* has the meaning assigned to such term in <u>Section 2.18</u>.

*"Lenders"* means the Persons listed on <u>Schedule 1</u> and any other Person that shall have become a party hereto in accordance with the terms hereof pursuant to an Assignment and Acceptance or Lender Joinder Agreement, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance. For the avoidance of doubt, the Swingline Lender shall constitute a "Lender" with respect to the repayment of Swingline Advances for all purposes hereunder.

*"Liabilities"* means all liabilities, obligations, losses, claims, damages, penalties, actions, judgments, suits, costs, reasonable and documented out-of-pocket expenses (including reasonable and documented out-of-pocket attorneys' fees and expenses) and disbursements of any kind or nature whatsoever*.*

*"Lien"* means any mortgage, pledge, hypothecation, assignment, encumbrance, lien or security interest (statutory or other), or preference, priority or other security agreement, charge or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any financing lease having substantially the same economic effect as any of the foregoing, and the filing authorized by the Borrower of any financing statement under the UCC or comparable Law of any jurisdiction).

*"Listed Collateral Loan"* means a Collateral Loan for which three or more bids are quoted and available from Loan Pricing Corporation, Mark-it Partners (formerly known as Loan X), Interactive Data Corporation or another nationally recognized broker-dealer or nationally

750499896 22723957

<u>751700376 22723957</u>

------

recognized quotation service requested by the Collateral Manager and approved from time to time by the Administrative Agent and the Required Lenders.

*"Listed Value"* means, for any Listed Collateral Loan, the bid price for such Collateral Loan most recently quoted by Loan Pricing Corporation, Mark-it Partners (formerly known as Loan X) or Interactive Data Corporation and obtained by the Collateral Manager, or quoted by another nationally recognized broker-dealer or nationally recognized quotation service as may be approved from time to time by the Administrative Agent if so requested by the Borrower; *provided* that, if the Collateral Manager reasonably believes that the price quoted by any such source is based on less than three bona fide bids, then the Collateral Manager, by notice to the Administrative Agent, may determine the Listed Value in accordance with <u>clause (b)</u> of the definition of Market Value.

*"Loan Checklist"* means an electronic or hard copy, as applicable, checklist in the form of <u>Exhibit G</u>, delivered by the Collateral Manager on behalf of the Borrower to the Administrative Agent and the Collateral Administrator, for each Collateral Loan, of all Related Documents to be included within the respective loan file, which, unless otherwise specified as an original, shall be a copy.

*"Main Street"* means Main Street Capital Corporation, a Maryland corporation.

*"Majority Lenders"* means, as of any date of determination, one or more Lenders having aggregate Percentages greater than 50%. To the extent provided in <u>Section 16.01(d)</u>, the Percentage of any Defaulting Lender shall be disregarded in determining Majority Lenders at any time.

*"Margin Stock"* has the meaning assigned to such term in Regulation U.

*"Market Value"* means, as of any date, for any Collateral Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)if such Collateral Loan is a Listed Collateral Loan as at such date, the Listed Value of such Collateral Loan as at such date; 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;(b)if such Collateral Loan is not a Listed Collateral Loan as of such date, the lower of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;the fair market value of such Collateral Loan as reasonably determined by the Collateral Manager in accordance with the Collateral Management Standard; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;the purchase price in respect of such Collateral Loan expressed as an effective percentage of par *less* any loss reserves maintained by the Borrower in respect of such Collateral Loan in accordance with GAAP.

*"Material Adverse Effect"* means (1) a material adverse effect on (a) the business, assets, financial condition or operations of the Borrower or the Collateral Manager, either individually or taken as a whole (excluding a decline in the asset value of the Borrower or a change in general market conditions or values of the loans and investments held by the Borrower), (b) the validity, enforceability or collectability of this Agreement or any other Facility Document or the validity, enforceability or collectability of the Collateral Loans or the Related Documents generally or any material portion of the Collateral Loans or the Related Documents, (c) the rights and remedies of the Administrative Agent, the Lenders and the other Secured Parties with respect to matters arising under this Agreement or any other Facility Document, (d) the ability of each of the Borrower or the Collateral Manager to perform its obligations under any Facility Document to

750499896 22723957

<u>751700376 22723957</u>

------

which it is a party, or (e) the status, existence, perfection, priority or enforceability of the Collateral Agent's Lien on the Collateral; *provided* that if a material adverse effect described in <u>clause (b)</u> or <u>(d)</u> affects or impairs the rights and remedies of the Borrower with respect to the validity, enforceability, legality or collectability of only a portion of the Collateral (and not as a whole), such effects shall not constitute a Material Adverse Effect at any time that such affected Collateral Loans are excluded from the Borrowing Base.

*"Material Modification"* means, with respect to any Collateral Loan, any amendment, waiver, consent or modification of a Related Document with respect thereto (it being understood that a release document or similar instrument executed or delivered in connection with a disposition that is otherwise permitted under the applicable Related Documents shall not constitute an amendment or modification to such Related Document) executed or effected after the date on which such Collateral Loan is acquired by the Borrower, 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;(a)reduces or waives one or more interest payments or permits any interest due with respect to such Collateral Loan in cash to be deferred or capitalized and added to the principal amount of such Collateral Loan (other than any deferral or capitalization already expressly permitted by the terms of its Related Documents or pursuant to the application of a pricing grid or pursuant to benchmark replacement interest rate provisions, in each case, as of the date such Collateral Loan was acquired by 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;(b)contractually or structurally subordinates such Collateral Loan by operation of a priority of payments, turnover provisions or the transfer of assets in order to limit recourse to the related Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)substitutes or releases the underlying assets securing such Collateral Loan (other than as expressly permitted by the Related Documents as of the date such Collateral Loan was acquired by the Borrower) or releases any material guarantor or co-Obligor from its obligations with respect thereto, and each such substitution or release materially and adversely affects the value of such Collateral Loan (as determined by the Administrative Agent in a commercially reasonable manner);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)waives, extends or postpones any date fixed for any scheduled payment (including at maturity) or mandatory prepayment of principal on such Collateral Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)reduces or forgives any principal amount of such Collateral Loan;

*provided* that (i) any Collateral Loan subject to a Material Modification which subsequently becomes a Credit Improved Loan shall no longer be considered to have been subject to a Material Modification hereunder unless such Collateral Loan is subject to a subsequent Material Modification; and (ii) the Collateral Manager shall be permitted, in accordance with the Collateral Management Standard (and not with the intention of increasing availability or circumventing any event or condition set forth in this Agreement), to reduce one or more interest payments, extend, waive or postpone any date fixed for any scheduled payment of principal (including at maturity) or waive, extend or reduce any mandatory prepayment of principal on a Collateral Loan, in each case, in connection with a re-pricing, refinancing or other request reflecting market terms then existing at such time (as determined by the Collateral Manager) or otherwise at the Obligor's request and not in connection with financial or operational difficulties affecting, or the credit deterioration of, the related Obligor, in each case, without such modification constituting a Material Modification hereunder so long as (x) after giving effect to such modification, each Collateral Quality Test is satisfied (or if not satisfied, the level of compliance with such Collateral Quality Test is maintained or improved), (y) on the date of such modification, such Collateral Loan constitutes a Current Modified Loan (whether or not clause

750499896 22723957

<u>751700376 22723957</u>

------

(dd) of the definition of Eligible Collateral Loan is satisfied) and (z) such modification is not made to avoid (or does not have the effect of avoiding) classification of such Collateral Loan as a Defaulted Collateral Loan.

*"Maximum Advance Rate Default Test"* means a test that will be satisfied at any time if (a) the aggregate outstanding principal balance of the Advances at such time is less than or equal to (b) the Maximum Available Amount at such time *multiplied by* 105%.

*"Maximum Advance Rate Test"* means a test that will be satisfied at any time if (a) the aggregate outstanding principal balance of the Advances at such time is less than or equal to (b) the Maximum Available Amount at such time.

*"Maximum Available Amount"* means, on any date of determination, without duplication, an amount equal to the least of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Facility Amount, *minus* the Revolving Exposure, *plus* the aggregate amount on deposit in the Revolving Reserve Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Borrowing Base *multiplied by* the Weighted Average Advance Rate, *minus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Net Aggregate Exposure Amount, *plus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the aggregate amount on deposit in the Principal Collection Account, *plus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the aggregate amount on deposit in the Revolving Reserve Account; 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;(c)the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Aggregate Collateral Balance (excluding unfunded commitments pursuant to <u>clause (d)</u> of the definition thereof), *minus* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Minimum Equity Amount, *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the aggregate amount on deposit in the Principal Collection Account, *plus*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the aggregate amount on deposit in the Revolving Reserve Account.

*"Measurement Date"* means, (i) the Closing Date, (ii) each Borrowing Date, and (iii) each Monthly Report Determination Date.

 *"Minimum Equity Amount"* means, at any time, the greater of (i) the lesser of (a) $30,000,000 and (b) 30% of the Facility Amount and (ii) (a) during the Ramp-Up Period, the Aggregate Collateral Balance of the Collateral Loans for the three largest Obligors (determined by Aggregate Collateral Balance) (it being understood that multiple Collateral Loans from the same Obligor and its Affiliates shall be treated as a single exposure) and (b) following the Ramp-Up Period, the Aggregate Collateral Balance of the Collateral Loans for the five largest Obligors

750499896 22723957

<u>751700376 22723957</u>

------

(determined by Aggregate Collateral Balance) (it being understood that multiple Collateral Loans from the same Obligor and its Affiliates shall be treated as a single exposure).

*"Money"* has the meaning assigned to such term in Section 1-201(24) of the UCC.

*"Monthly Asset Amount"* means, for any Payment Date, an amount equal to the Aggregate Principal Balance of all Collateral Loans calculated as the arithmetic average of the amounts of the items described in such clauses on the first day and last day of such Collection Period.

*"Monthly Report"* has the meaning assigned to such term in <u>Section 8.06(a)</u>.

*"Monthly Report Determination Date"* has the meaning assigned to such term in <u>Section 8.06(a)</u>.

*"Monthly Reporting Date"* has the meaning assigned to such term in <u>Section 8.06(a)</u>.

*"Moody's"* means Moody's Investors Service, Inc., together with its successors.

*"Multiemployer Plan"* means an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA that is sponsored by the Borrower (or, with respect to the Collateral Manager, by the Collateral Manager) or a member of its ERISA Group or to which the Borrower (or the Collateral Manager) or a member of its ERISA Group is obligated to make contributions or has any liability.

 *"Net Aggregate Exposure Amount"* means, at any time, the sum of (a) the product of (i) the Unfunded Amount of each Eligible Collateral Loan (other than Defaulted Collateral Loans and Haircut Collateral Loans) and (ii) 1 minus the Advance Rate related to such Collateral Loan *plus* (b) the product of (i) the Unfunded Amount of each Haircut Collateral Loan (other than Defaulted Collateral Loans) and (ii) 1 *minus* the Recovery Rate related to such Haircut Collateral Loan *plus* (c) the Unfunded Amount of each Defaulted Collateral Loan and Ineligible Collateral Loan.

*"Non-U.S. Lender"* has the meaning assigned to such term in <u>Section 16.03(g)</u>.

*"Notice of Borrowing"* has the meaning assigned to such term in <u>Section 2.02</u>.

*"Notice of Prepayment"* has the meaning assigned to such term in <u>Section 2.05</u>.

*"Obligations"* means all indebtedness, whether absolute, fixed or contingent, at any time or from time to time owing by the Borrower to any Secured Party or any Affected Person under or in connection with this Agreement, any Fee Letter or any other Facility Document, including obligations pursuant to the Agents' Erroneous Payment Subrogation Rights, all amounts payable by the Borrower in respect of the Advances, with interest thereon, and all other amounts payable hereunder or thereunder by the Borrower.

*"Obligor"* means, in respect of any Collateral Loan, each Person obligated to pay Collections in respect of such Collateral Loan, including any applicable guarantors; *provided* that for purposes of determining the domicile of an Obligor for purposes of the definitions of Concentration Limitation and Eligible Collateral Loan, the term "Obligor" shall only include the Person in respect of which the Collateral Loan was principally underwritten.

*"OFAC"* means the U.S. Office of Foreign Assets Control.

750499896 22723957

<u>751700376 22723957</u>

------

*"Other Connection Taxes"* means, in the case of any Secured Party, any Taxes imposed as a result of a present or former connection between such Secured Party and the jurisdiction imposing such Tax (other than a connection arising solely from such Secured Party having executed, delivered, become a party to, performed obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced this Agreement or any other Facility Document).

*"Other Taxes"* 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 Facility 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 16.03(h)</u> or <u>Section 2.17</u>).

*"Parent"* means Main Street Capital Corporation, a Maryland corporation.

*"Parent Collateral Loan"* means any Collateral Loan sold and/or contributed by the Parent to the Borrower pursuant to the Purchase and Contribution Agreement.

*"Parent Collateral Loan Balance"* means, as of any date of determination, an amount equal to the Aggregate Principal Balance of all Parent Collateral Loans acquired by the Borrower from the Parent prior to such date.

*"Partial PIK Loan"* means a Collateral Loan that requires the Obligor to pay only a portion of the accrued and unpaid interest in Cash on a current basis, the remainder of which is or can be deferred and paid later; *provided* that the portion of such interest required to be paid in Cash pursuant to the terms of the applicable Related Documents carries a current Cash pay interest rate paid (x) at a floating rate of not less than 2.50% *per annum* over the then-current Benchmark or (y) at a fixed rate of not less than 6.0% *per annum*; *provided* further that such Collateral Loan shall not constitute a Partial PIK Loan if the portion of such interest required to be paid in Cash pursuant to the terms of the applicable Related Documents carries a current Cash pay interest rate paid (x) at a floating rate of not less than 5.0% *per annum* over the then-current Benchmark or (y) at a fixed rate of not less than 8.0% *per annum*.

*"Participant"* means any Person to whom a participation is sold as permitted by <u>Section 16.06(c)</u>.

*"Participant Register"* has the meaning assigned to such term in <u>Section 16.06(c)(ii)</u>.

*"Past Due Rate"* has the meaning assigned to such term in the Lender Fee Letter.

*"PATRIOT Act"* has the meaning assigned to such term in <u>Section 16.16</u>.

*"Payment Account"* means the payment account of the Collateral Agent established pursuant to <u>Section 8.03(a)</u>.

*"Payment Date"* means <u>(i) January 24, 2023 and (ii)</u> the 24<u>25</u><sup>th</sup> day of each calendar month commencing January<u>February</u> 2023; *provided* that, if any such day is not a Business Day, then such Payment Date shall be the next succeeding Business Day.

*"PBGC"* means the Pension Benefit Guaranty Corporation, or any successor agency or Person performing substantially the same functions.

750499896 22723957

<u>751700376 22723957</u>

------

*"Percentage"* of any Lender means, (a) with respect to any Lender party hereto on the Closing Date, the percentage set forth opposite such Lender's name on <u>Schedule 1</u>, as such amount is reduced by a Lender Joinder Agreement entered into with a new Lender or by any Assignment and Acceptance entered into by such Lender with an assignee or increased by any Assignment and Acceptance entered into by such Lender with an assignor, or (b) with respect to a Lender that has become a party hereto pursuant to an Assignment and Acceptance or a Lender Joinder Agreement, the percentage set forth therein as such Lender's Percentage, as such amount is reduced by an Assignment and Acceptance or a Lender Joinder Agreement entered into between such Lender and an assignee or increased by any Assignment and Acceptance or Lender Joinder Agreement entered into by such Lender with an assignor.

*"Periodic Term SOFR Determination Day"* shall have the meaning set forth in the definition of "Term SOFR".

*"Permitted Assignee"* means (a) a Lender or any of its Affiliates or (b) any Person managed by a Lender or any of its Affiliates.

*"Permitted Liens"* means: (a) Liens created in favor of the Collateral Agent hereunder or under the other Facility Documents for the benefit of the Secured Parties; (b) Liens imposed by any Governmental Authority for taxes, assessments or charges not yet delinquent or which are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Borrower in accordance with GAAP; (c) with respect to the underlying collateral for any Collateral Loan, Liens imposed by Law, such as materialmen's, warehousemen's, mechanics', carriers', workmen's and repairmen's Liens and other similar Liens upon such underlying assets, arising by operation of law in the ordinary course of business for sums that are not overdue or are being contested in good faith; (d) with respect to any Collateral Loan, Liens on the underlying collateral for such Collateral Loan permitted under the Related Documents that are customary for similar Collateral Loans and consistent with the Collateral Management Standard; and (e) customary restrictions on transfer of such Collateral Loans set forth in the applicable Related Documents.

*"Permitted RIC Distributions"* means, with respect to each taxable year, any distributions determined by Main Street in good faith to be required to be made in order to maintain Main Street's tax status under Section 851 of the Code or to avoid the payment of any tax imposed under Section 852(b)(1), Section 852(b)(3) or Section 4982 of the Code.

*"Person"* means an individual or a corporation (including a business trust), partnership, trust, incorporated or unincorporated association, joint stock company, limited liability company, government (or an agency or political subdivision thereof) or other entity of any kind.

*"PIK Loan"* means a Collateral Loan (other than a Partial PIK Loan) that permits the Obligor thereon to defer or capitalize any portion of the accrued interest thereon.

*"Plan"* means an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA or subject to the minimum funding standards under Section 412 of the Code that is sponsored by the Borrower (or, with respect to the Collateral Manager, by the Collateral Manager) or a member of its ERISA Group or to which the Borrower (or the Collateral Manager) or a member of its ERISA Group is obligated to make contributions or has any liability.

*"Plan Asset Rule"* has the meaning assigned to such term in <u>Section 4.01(n)</u>.

750499896 22723957

<u>751700376 22723957</u>

------

 *"Potential Collateral Manager Termination Event"* means any event which, with the passage of time, the giving of notice, or both, would constitute a Collateral Manager Termination Event.

*"Potential Terminated Lender"* has the meaning assigned to such term in <u>Section 2.17(a)</u>.

*"Prime Rate"* means the rate announced by Truist from time to time as its prime rate in the United States, such rate to change as and when such designated rate changes. The Prime Rate is not intended to be the lowest rate of interest charged by Truist in connection with extensions of credit to debtors. Truist may make commercial loans or other loans at rates of interest at, above or below the Prime Rate. Notwithstanding anything herein to the contrary, in no event shall the Prime Rate be less than 0.00%.

*"Principal Balance"* means, with respect to any Collateral Loan, as of any date of determination, the outstanding principal amount of such Collateral Loan (excluding any capitalized interest).

*"Principal Collection Account"* has the meaning assigned to such term in <u>Section 8.02(a)</u>.

*"Principal Proceeds"* means, with respect to any Collection Period or the related Determination Date, all amounts received by the Borrower during such Collection Period that do not constitute Interest Proceeds, including unapplied proceeds of the Advances and any Cash equity contributions (unless specified by the Collateral Manager to constitute Interest Proceeds in accordance with <u>Section 10.05</u>).

*"Priority of Payments"* has the meaning assigned to such term in <u>Section 9.01(a)</u>.

*"Private Authorizations"* means all franchises, permits, licenses, approvals, consents and other authorizations of all Persons (other than Governmental Authorities).

*"Proceeds"* has, with reference to any asset or property, the meaning assigned to it under Section 9-102(a)(64) of the UCC and, in any event, shall include any and all amounts from time to time paid or payable under or in connection with such asset or property.

*"Purchase and Contribution Agreement"* means that certain Purchase and Contribution Agreement dated as of the Closing Date between the Parent, as seller, and the Borrower, as buyer.

*"QIB"* has the meaning assigned to such term in <u>Section 16.06(e)</u>.

*"Qualified Institution"* means a depository institution or trust company organized under the Laws of the United States of America or any one of the States thereof or the District of Columbia (or any domestic branch of a foreign bank), (i)(a) that has either (1) a long-term unsecured debt rating of "A" or better by S&P and "A2" or better by Moody's or (2) a short-term unsecured debt rating or certificate of deposit rating of "A-1" or better by S&P or "P-1" or better by Moody's, (b) the parent corporation of which has either (1) a long-term unsecured debt rating of "A" or better by S&P and "A2" or better by Moody's or (2) a short-term unsecured debt rating or certificate of deposit rating of "A-1" or better by S&P and "P-1" or better by Moody's or (c) is otherwise acceptable to the Administrative Agent and (ii) the deposits of which are insured by the Federal Deposit Insurance Corporation.

*"Qualified Purchaser"* has the meaning assigned to such term in <u>Section 16.06(e)</u>.

750499896 22723957

<u>751700376 22723957</u>

------

*"Ramp-Up Period"* means the period beginning on the Closing Date and ending upon the earliest of: (a) the date on which the Aggregate Collateral Balance first meets or exceeds the Facility Amount then in effect; (b) the date that is the six-month anniversary of the Closing Date; and (c) the date on which the Borrower provides written notice to the Administrative Agent that the Ramp-Up Period has ended.

*"Recovery Rate"* means, with respect to any Collateral Loan, the "Recovery Rate" for such Collateral Loan as set forth opposite such asset type below:

First Lien Loans – 50%

Split First Lien Loans – 50%

Split Lien Loans – 50%

Second Lien Loans – 30%

*"Register"* has the meaning assigned to such term in <u>Section 16.06(d)</u>.

*"Regulation T"*, *"Regulation U"* and *"Regulation X"* mean Regulation T, U and X, respectively, of the Board of Governors of the Federal Reserve System, as in effect from time to time.

*"Reinvestment Period"* means the period from and including the Closing Date to and including the earlier of (a) the Scheduled Reinvestment Period End Date (including any extension pursuant to the definition thereof) and (b) at the election of the Administrative Agent or the Required Lenders, the date of the termination of the Commitments pursuant to <u>Section 6.01</u>.

*"Related Documents"* means, with respect to any Collateral Loan, (a) the loan or credit agreement evidencing such Collateral Loan, (b) the principal security agreement, and (c) if the same can be obtained without undue expense or effort, all other material documents evidencing, guaranteeing, securing, governing or giving rise to such Collateral Loan (including those identified on the Loan Checklist).

*"Relevant Governmental Body"* means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York, or any successor thereto.

*"Relevant Test Period"* means, with respect to any Collateral Loan, the relevant test period for the calculation of EBITDA, Fixed Charge Coverage Ratio, Senior Leverage Ratio or Total Leverage Ratio, as applicable, for such Collateral Loan in the applicable Related Documents or, if no such period is provided for therein, for Obligors delivering monthly financial statements, each period of the last twelve consecutive reported calendar months, and for Obligors delivering quarterly financial statements, each period of the last four consecutive reported fiscal quarters of the principal Obligor on such Collateral Loan; *provided* that, with respect to any Collateral Loan for which the relevant test period is not provided for in the applicable Related Documents, if an Obligor is a newly-formed entity as to which twelve consecutive calendar months have not yet elapsed, "Relevant Test Period" shall initially include the period from the date of formation of such Obligor or closing date of the applicable Collateral Loan to the end of the twelfth calendar month or fourth fiscal quarter (as the case may be) from the date of formation or closing, as applicable, and shall subsequently include each period of the last twelve consecutive reported calendar months or four consecutive reported fiscal quarters (as the case may be) of such Obligor.

*"Replacement Lender"* has the meaning assigned to such term in <u>Section 2.17(a)</u>.

750499896 22723957

<u>751700376 22723957</u>

------

*"Requested Amount"* has the meaning assigned to such term in <u>Section 2.02</u>.

*"Required Lenders"* means, as of any date of determination, one or more Lenders having aggregate Percentages greater than or equal to 66 2/3%; <u>provided</u> that if there are two (2) or more Lenders party hereto that are not Affiliates as of the applicable date of determination, then at least two such Lenders shall be required to constitute the Required Lenders. To the extent provided in <u>Section 16.01(d)</u>, the Percentage of any Defaulting Lender shall be disregarded in determining Required Lenders at any time.

*"Resolution Authority"* means an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

*"Responsible Officer"* means (a) in the case of (i) a corporation or (ii) a partnership or (iii) a limited liability company that, in each case, pursuant to its Constituent Documents, has officers, any chief executive officer, chief financial officer, chief administrative officer, managing director, president, senior vice president, vice president, assistant vice president, treasurer, director or manager, and, in any case where two Responsible Officers are acting on behalf of such entity, the second such Responsible Officer may be a secretary or assistant secretary (<u>provided</u> that a director or manager (other than an Independent Manager) of the Borrower shall be a Responsible Officer regardless of whether its Constituent Documents provide for officers), (b) without limitation of <u>clause (a)(ii)</u>, in the case of a limited partnership, the Responsible Officer of the general partner, acting on behalf of such general partner in its capacity as general partner, (c) without limitation of <u>clause (a)(iii)</u>, in the case of a limited liability company, any Responsible Officer of the sole member or managing member or manager, acting on behalf of the sole member, managing member or manager in its capacity as sole member, managing member or manager, (d) in the case of a trust, the Responsible Officer of the trustee, acting on behalf of such trustee in its capacity as trustee, (e) an "authorized signatory" or "authorized officer" that has been so authorized pursuant to customary corporate proceedings, limited partnership proceedings, limited liability company proceedings or trust proceedings, as the case may be, and that has responsibilities commensurate with the matter for which it is acting as a Responsible Officer: the initial "authorized signatories" of the Borrower, the Parent and the Collateral Manager are set forth on <u>Schedule 7</u> hereto (as such <u>Schedule 7</u> may be modified from time to time by written notice), (f) in the case of the Administrative Agent, an officer of Administrative Agent, as applicable, having direct responsibility for the administration of this Agreement, (g) in the case of the Custodian, the Document Custodian or the Collateral Agent, as applicable, an officer assigned to the Agency & Trust Division (or any successor group) of the Custodian, the Document Custodian or the Collateral Agent, as applicable, including any vice president of the Custodian, the Document Custodian or the Collateral Agent customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any matter is referred within such Agency & Trust Division (or any successor group), because of such person's knowledge of and familiarity with the particular subject and in each case having direct responsibility for the administration of this Agreement and (h) in the case of the Collateral Administrator, any officer authorized to act for and on behalf of the Collateral Administrator or to whom any matter is referred within such Person because of such person's knowledge of and familiarity with the particular subject and, in each case, having direct responsibility for the administration of this Agreement.

*"Restricted Payments"* means the declaration of any distribution or dividends or the payment of any other amount (including in respect of redemptions permitted by the Constituent Documents of the Borrower) to any shareholder, partner, member or other equity investor in the Borrower on account of any share, membership interest, partnership interest or other equity interest in respect of the Borrower, or the payment on account of, or the setting apart of assets for a sinking or other analogous fund for, or the purchase or other acquisition of any class of stock of or other equity interest in the Borrower or of any warrants, options or other rights to acquire the

750499896 22723957

<u>751700376 22723957</u>

------

same (or to make any "phantom stock" or other similar payments in the nature of distributions or dividends in respect of equity to any Person), whether now or hereafter outstanding, either directly or indirectly, whether in cash, property (including marketable securities), or any payment or setting apart of assets for the redemption, withdrawal, retirement, acquisition, cancellation or termination of any share, membership interest, partnership interest or other equity interest in respect of the Borrower. For the avoidance of doubt, (x) payments and reimbursements due to the Collateral Manager in accordance with this Agreement or any other Facility Document do not constitute Restricted Payments, and (y) distributions by the Borrower to holders of its membership interests of Collateral Loans or of cash or other proceeds relating thereto which have been sold to, repurchased or substituted by, the Borrower in accordance with this Agreement shall not constitute Restricted Payments.

*"Retransfer Date"* has the meaning assigned to such term in <u>Section 10.03(b)(vi)</u>.

*"Review Criteria"* is defined in <u>Section 13.02(b)(i)</u>.

*"Revolving Collateral Loan"* means any Collateral Loan (other than a Delayed Drawdown Collateral Loan) that is a loan (including revolving loans, funded and unfunded portions of revolving credit lines and letter of credit facilities, unfunded commitments under specific facilities and other similar loans and investments) that by its terms may require one or more future advances to be made to the related Obligor by the Borrower and which provides that such borrowed money may be repaid and re-borrowed from time to time; *provided* that any such Collateral Loan will be a Revolving Collateral Loan only until all commitments to make advances to the Obligor expire or are terminated or irrevocably reduced to zero.

*"Revolving Exposure"* means, at any time, the sum of the aggregate Unfunded Amount of each Collateral Loan (including each Ineligible Collateral Loan and each Defaulted Collateral Loan) at such time.

*"Revolving Reserve Account"* means the account established pursuant to <u>Section 8.04</u>.

*"Revolving Reserve Required Amount"* has the meaning assigned to such term in <u>Section 8.04</u>.

"*RIC*" or "regulated investment company" shall mean an investment company or business development company that qualifies for the special tax treatment provided for by subchapter M of the Code.

*"S&P"* means S&P Global Inc., and any successor thereto.

*"Sanctioned Country"* means, at any time, a country or territory that is, or whose government is, the subject or target of any Sanctions.

*"Sanctioned Person"* means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any EU member state, His Majesty's Treasury of the United Kingdom or the Government of Canada, (b) any Person located, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person.

*"Sanctions"* means economic or financial sanctions or trade embargoes administered or enforced from time to time by (a) the U.S. government, including those administered by OFAC or the U.S. Department of State, (b) the United Nations Security Council, the European Union or His Majesty's Treasury of the United Kingdom or (c) the Government of Canada, including

750499896 22723957

<u>751700376 22723957</u>

------

those administered by Global Affairs Canada, Public Safety Canada, and the Department of Justice.

*"Scheduled Distribution"* means, with respect to any Collateral Loan, for each Due Date, the scheduled payment of principal and/or interest and/or fees due on such Due Date with respect to such Collateral Loan.

*"Scheduled Reinvestment Period End Date"* means November 21, 2025 (or such later date as may be agreed by the Borrower, the Administrative Agent and each Lender).

*"Scheduled Split First Lien Loan"* means a Collateral Loan set forth on <u>Schedule 8</u> hereto that (a) would be characterized as a First Lien Loan but which has been structured with a credit facility that is senior in right of payment thereto and (b) satisfies the following criteria, as of the date of origination by Main Street: (i) the aggregate commitment of the senior credit facility is less than or equal to 25.0% of the total first lien debt (including the Split First Lien Loan and the senior credit facility as measured by aggregate first lien loans and commitments), and (ii) the senior credit facility portion (as measured by commitment) has a trailing twelve-month senior debt to EBITDA ratio of less than or equal to 0.5x.

*"Scheduled Split Lien Loan"* means a Collateral Loan set forth on <u>Schedule 9</u> hereto that (a) would be characterized as a First Lien Loan but which has been structured with a credit facility that is senior in right of payment with respect to current assets and (b) satisfies the following criteria, as of the date of origination by Main Street: (i) the aggregate commitment of the senior credit facility is less than or equal to 25.0% of the total first lien debt (including the Split Lien Loan and the senior credit facility as measured by aggregate first lien loans and commitments), and (ii) the senior credit facility portion (as measured by commitment) has a trailing twelve-month senior debt to EBITDA ratio of less than or equal to 1.0x.

*"Second Lien Loan"* means any Collateral Loan (for purposes of this definition, a *"loan"*) 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;(a)&nbsp;&nbsp;&nbsp;&nbsp;is a First Lien/Last Out Loan (other than a Split First Lien Loan or a Split Lien Loan); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;meets the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;is not (and is not expressly permitted by its terms to become) subordinate in right of payment to any other obligation for borrowed money of the Obligor of such loan (excluding customary terms applicable to a second lien lender under customary intercreditor provisions, such as after an event of default in connection with a first priority perfected Lien or with respect to the liquidation of the Obligor or of specified collateral);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;is secured by a valid second priority perfected Lien in, to or on specified collateral securing the Obligor's obligations under such loan (whether or not such loan is also secured by any higher or lower priority Lien on other collateral), but subject to purchase money Liens and customary Liens for taxes or regulatory charges not then due and payable and other Permitted Liens under the Related Documents; *provided* that such Permitted Liens do not directly secure indebtedness for borrowed money;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;is secured, pursuant to such second priority perfected Lien, by collateral having a value (determined as set forth below) that is adequate (in the commercially reasonable judgment of the Collateral Manager) to repay such

750499896 22723957

<u>751700376 22723957</u>

------

Collateral Loan in accordance with its terms *plus* the aggregate Principal Balances of all other loans of equal or higher seniority secured by a first or second Lien in the same collateral; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;is not a loan which is secured solely or primarily by the common stock of its Obligor or any of its Affiliates; *provided* that the limitation set forth in this subclause (iv) shall not apply with respect to a Collateral Loan made to a parent entity that is secured solely or primarily by the stock of one or more of the subsidiaries of such parent entity to the extent that either (1) in the Collateral Manager's reasonable judgment, the applicable Related Documents of such Collateral Loan limit the activities of such Obligor or such subsidiary, as applicable, in such a manner so as to provide a reasonable expectation that (x) cash flows from such Obligor or from such subsidiary and such Obligor, as applicable, are sufficient to provide debt service on such Collateral Loan and (y) the assets of such Obligor or of such subsidiary and such Obligor, as applicable, would be available to repay principal of and interest on such Collateral Loan in the event of the enforcement of such Related Documents or (2) the granting by any such subsidiary of a Lien on its own property would violate law or regulations applicable to such subsidiary (whether the obligation secured is such Collateral Loan or any other similar type of indebtedness owing to third parties).

The determination as to whether <u>clause (b)(iii)</u> of this definition is satisfied shall be based on both (a) an analysis of the enterprise value (including, without limitation, its general financial condition, ability to generate cash flow available for debt service and other demands for that cash flow) of the related Obligor by the Collateral Manager or an Appraisal or other valuation (which may be an internal Appraisal or valuation performed by the Collateral Manager) performed on or about the date of acquisition by the Borrower or of the most recent restructuring of such Collateral Loan, and (b) the Collateral Manager's judgment at the time such Collateral Loan is acquired by the Borrower.

"*SEC*" means the United States Securities and Exchange Commission or any Governmental Authority succeeding to any or all of the functions thereof.

*"Secured Parties"* means the Administrative Agent, the Collateral Agent, the Collateral Administrator, the Document Custodian, the Custodian (including Citibank, N.A. in its capacity as Securities Intermediary under the Account Control Agreement), each Lender, the Collateral Manager, and, if applicable, the Successor Collateral Manager.

*"Secured Party Representatives"* has the meaning assigned to such term in <u>Section 16.09</u>.

*"Securities Act"* means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, all as from time to time in effect.

*"Securities Intermediary"* has the meaning assigned to it in Section 8-102(a)(14) of the UCC.

*"Security Entitlement"* has the meaning assigned to such term in Section 8-102(a)(17) of the UCC.

*"Senior Collateral Management Fee"* means, for any Collection Period, an amount equal to the product of (a) 0.25% *per annum, multiplied by* (b) the Monthly Asset Amount (calculated on the basis of a 360 day year and the actual number of days elapsed in the related Collection Period).

750499896 22723957

<u>751700376 22723957</u>

------

*"Senior Leverage Ratio"* means, with respect to any Collateral Loan for any Relevant Test Period, the meaning of "Senior Leverage Ratio", "Senior Net Leverage Ratio", "First Lien Leverage Ratio", "First Lien Net Leverage Ratio" or any comparable term relating to first lien senior secured (or such applicable lien or applicable level within the capital structure) indebtedness defined in the Related Documents for such Collateral Loan, or the ratio of (a) first lien senior secured (or such applicable lien or applicable level within the capital structure) indebtedness *minus* Unrestricted Cash to (b) EBITDA as calculated by the Collateral Manager in good faith using information from and calculations consistent with the relevant financial models, *pro forma* financial statements, compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Related Documents.

 *"Signature Law"* has the meaning assigned to such term in <u>Section 16.05</u>.

*"SOFR"* means a rate per annum equal to the secured overnight financing rate as administered by the SOFR Administrator.

*"SOFR Administrator"* means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

*"SOFR Borrowing"* shall mean a Borrowing that bears interest at a rate based on Adjusted Term SOFR, other than pursuant to <u>clause (c)</u> of the definition of "Base Rate".

*"Solvent"* means, as to any Person, such Person is not "insolvent" within the meaning of Section 101(32) of the Bankruptcy Code or Section 271 of the Debtor and Creditor Law of the State of New York.

*"Specified Eligible Investment"* means an Eligible Investment that is available to the Collateral Agent, specified by the Collateral Manager to the Collateral Agent (with a copy to the Administrative Agent) on or prior to the initial Borrowing Date; *provided* that, so long as no Default or Event of Default shall have occurred and then be continuing, at any time with not less than five Business Days' notice to the Collateral Agent (with a copy to the Administrative Agent) the Collateral Manager may (and, if the-then Specified Eligible Investment is no longer available to the Collateral Agent, shall) designate another Eligible Investment that is available to the Collateral Agent to be the Specified Eligible Investment for purposes hereof. After the occurrence of a Default or Event of Default, a Specified Eligible Investment shall mean an Eligible Investment which has been selected by the Administrative Agent and specified to the Collateral Agent.

*"Split First Lien Loan"* means (x) a Scheduled Split First Lien Loan or (y) a Collateral Loan that (a) would be characterized as a First Lien Loan but which has been structured with a credit facility that is senior in right of payment thereto and (b) satisfies the following criteria: (i) the aggregate commitment of the senior credit facility is less than or equal to 25.0% of the total first lien debt (including the Split First Lien Loan and the senior credit facility as measured by aggregate first lien loans and commitments), and (ii) the senior credit facility portion (as measured by commitment) has a trailing twelve-month senior debt to EBITDA ratio of less than or equal to 0.5x. Collateral Loans that do not meet the requirements of this definition may be categorized as (subject to satisfying the applicable criteria) either (a) Split Lien Loans or (b) Second Lien Loans.

*"Split Lien Loan"* means a (x) a Scheduled Split Lien Loan or (y) Collateral Loan that (a) would be characterized as a First Lien Loan but which has been structured with a credit facility that is senior in right of payment with respect to current assets and (b) satisfies the following criteria: (i) the aggregate commitment of the senior credit facility is less than or equal to 25.0% of the total first lien debt (including the Split Lien Loan and the senior credit facility as measured

750499896 22723957

<u>751700376 22723957</u>

------

by aggregate first lien loans and commitments), and (ii) the senior credit facility portion (as measured by commitment) has a trailing twelve-month senior debt to EBITDA ratio of less than or equal to 1.0x. Collateral Loans that do not meet the requirements of this definition shall be deemed Second Lien Loans.

*"Stretch Senior Loan"* means any Collateral Loan (a) that is secured by a valid and perfected first priority Lien on substantially all of the Obligor's assets constituting the underlying collateral for such Collateral Loan, subject to Permitted Liens, (b) for which no other secured indebtedness of the Obligor secured by a lien on substantially all of the Obligor's assets and senior to the Lien of the Collateral Loan exists or is outstanding (subject to Permitted Liens), and (c) for which the payment obligation of the Obligor on such Collateral Loan is either senior to, or *pari passu* with, all other indebtedness of such Obligor. For purposes of determining the Advance Rate for a Stretch Senior Loan, (i) if the Obligor of such Stretch Senior Loan is a Tier 1 Obligor at the time of acquisition by the Borrower, then (a) that portion of such Stretch Senior Loan which, when included in the total indebtedness of such Obligor, results in a Total Leverage Ratio of 5.50x or less at the time of acquisition by the Borrower shall be treated as a First Lien Loan and (b) that portion of such Stretch Senior Loan which, when included in the total indebtedness of such Obligor, results in a Total Leverage Ratio greater than 5.50x (but less than or equal to 6.50x) at the time of acquisition by the Borrower shall be treated as a Second Lien Loan; (ii) if the Obligor of such Stretch Senior Loan is a Tier 2 Obligor at the time of acquisition by the Borrower, then (a) that portion of such Stretch Senior Loan which, when included in the total indebtedness of such Obligor, results in a Total Leverage Ratio of 4.75x or less at the time of acquisition by the Borrower shall be treated as a First Lien Loan and (b) that portion of such Stretch Senior Loan which, when included in the total indebtedness of such Obligor, results in a Total Leverage Ratio greater than 4.75x (but less than or equal to 5.75x) at the time of acquisition by the Borrower shall be treated as a Second Lien Loan; and (iii) if the Obligor of such Stretch Senior Loan is a Tier 3 Obligor at the time of acquisition by the Borrower, then (a) that portion of such Stretch Senior Loan which, when included in the total indebtedness of such Obligor, results in a Total Leverage Ratio of 4.25x or less at the time of acquisition by the Borrower shall be treated as a First Lien Loan and (b) that portion of such Stretch Senior Loan which, when included in the total indebtedness of such Obligor, results in a Total Leverage Ratio greater than 4.25x (but less than or equal to 5.00x) at the time of acquisition by the Borrower shall be treated as a Second Lien Loan. For all other purposes, a Stretch Senior Loan shall be considered a First Lien Loan.

*"Structured Finance Obligation"* means any debt obligation owing by a finance vehicle that is secured directly and primarily by, primarily referenced to, and/or primarily representing ownership of, a pool of receivables or a pool of other assets, including collateralized debt obligations, residential mortgage-backed securities, commercial mortgage-backed securities, other asset-backed securities, "future flow" receivable transactions and other similar obligations; <u>provided</u> that loans to financial service companies, factoring businesses, health care providers and other genuine operating businesses do not constitute Structured Finance Obligations.

*"Subordinated Collateral Management Fee"* means, for any Collection Period, an amount equal to the product of (a) 0.25% *per annum, multiplied by* (b) the Monthly Asset Amount (calculated on the basis of a 360-day year and the actual number of days elapsed in the related Collection Period).

*"Substitute Loan"* has the meaning assigned to such term in <u>Section 10.03</u>.

*"Successor Collateral Manager"* has the meaning assigned to such term in <u>Section 11.08(b)</u>.

750499896 22723957

<u>751700376 22723957</u>

------

*"Swingline Advance"* means any swingline loan made by the Swingline Lender to the Borrower pursuant to <u>Section 2.01</u> and all such swingline loans collectively as the context requires.

*"Swingline Commitment"* means the commitment of the Swingline Lender to fund Swingline Advances subject to the terms and conditions herein, in an amount not greater than $20,000,000, as such amount may be reduced, increased or assigned from time to time pursuant to the provisions of this Agreement. The Swingline Commitment is a sub-limit of the Commitment of the Swingline Lender, in its capacity as a Lender hereunder, and is not in addition thereto. Each Lender shall purchase a risk participation interest in any Swingline Advance.

*"Swingline Lender"* has the meaning assigned such term in the introduction of this Agreement.

*"Swingline Refund Date"* has the meaning assigned to such term in <u>Section 2.15(a)</u>.

*"Taxes"* means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any taxing Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

*"Term SOFR"* means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;for any calculation with respect to a SOFR Borrowing, the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Accrual Period on the day (such day, the "*Periodic Term SOFR Determination Day*") that is two (2) U.S. Government Securities Business Days prior to the first day of such Interest Accrual Period, as such rate is published by the Term SOFR Administrator; <u>provided</u>, that if as of 5:00 p.m. 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 (3) U.S. Government Securities Business Days prior to such Periodic Term SOFR Determination Day, 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;for any calculation with respect to any Borrowing other than a SOFR Borrowing on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "*Base Rate Term SOFR Determination Day*") that is two (2) U.S. Government Securities Business Days prior to such day, as such rate is published by the Term SOFR Administrator; <u>provided</u> that if as of 5:00 p.m. on any Base Rate 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 (3) U.S. Government Securities Business Days prior to such Base Rate Term SOFR Determination Day;

750499896 22723957

<u>751700376 22723957</u>

------

<u>provided</u>, that if Term SOFR determined as provided above (including pursuant to the proviso under <u>clause (a)</u> or <u>(b)</u> above) is less than the Floor, then Term SOFR shall be deemed to be the Floor.

*"Term SOFR Adjustment"* means a percentage equal to 0.10% per annum.

*"Term SOFR Administrator"* means the 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).

*"Term SOFR Reference Rate"* means the rate per annum determined by the Administrative Agent, based on the rate published by the Term SOFR Administrator, as the forward-looking term rate based on SOFR.

*"Tier 1 Obligor"* means an Obligor of any Collateral Loan with EBITDA greater than or equal to $50,000,000, determined at the most recent to occur of (i) the date such Collateral Loan is acquired by the Borrower and (ii) the date of any subsequent increase or modification to such Collateral Loan resulting from a material acquisition by the associated Obligor.

*"Tier 2 Obligor"* means an Obligor of any Collateral Loan with either (a) EBITDA greater than or equal to $20,000,000 or (b) (i) EBITDA greater than $5,000,000 and less than $20,000,000 and (ii) a Fixed Charge Coverage Ratio of greater than or equal to 1.25x and a Debt to Capitalization Ratio of no more than 65.0% (in each case, determined at the most recent to occur of (i) the date such Collateral Loan is acquired by the Borrower and (ii) the date of any subsequent increase or modification to such Collateral Loan resulting from a material acquisition by the associated Obligor).

 *"Tier 3 Obligor"* means an Obligor that does not meet the criteria of either a Tier 1 Obligor or a Tier 2 Obligor.

*"Total Leverage Ratio"* means, with respect to any Collateral Loan for any Relevant Test Period, the meaning of "Total Leverage Ratio", "Total Net Leverage Ratio" or any comparable term relating to total indebtedness defined in the Related Documents for such Collateral Loan or the ratio of (a) total indebtedness *minus* Unrestricted Cash to (b) EBITDA as calculated by the Collateral Manager in good faith using information from and calculations consistent with the relevant financial models, pro forma financial statements, compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Related Documents.

"*Trade Ticket*" means any trade ticket, confirmation of trade, instruction to post or to commit to the trade or similar instrument or document or other written instruction (including by email or other electronic communication or file transfer protocol).

*"Truist"* has the meaning assigned to such term in the introduction to this Agreement.

*"UCC"* means the New York Uniform Commercial Code; <u>provided</u> that if, by reason of any mandatory provisions of Law, the perfection, the effect of perfection or non-perfection or priority of the security interests granted to the Collateral Agent pursuant to this Agreement are governed by the Uniform Commercial Code as in effect in a jurisdiction of the United States of America other than the State of New York, then "<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of such perfection, effect of perfection or non-perfection or priority.

750499896 22723957

<u>751700376 22723957</u>

------

*"UK Financial Institution"* 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.

*"UK Resolution Authority"* means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

*"Unadjusted Benchmark Replacement"* means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

*"Uncertificated Security"* has the meaning assigned to such term in Section 8-102(a)(18) of the UCC.

*"Unfunded Amount"* means, with respect to any Collateral Loan that constitutes a Revolving Collateral Loan or a Delayed Drawdown Collateral Loan, as of any date of determination, the unfunded commitment of the Borrower with respect to such Collateral Loan as of such date.

*"Unrestricted Cash"* has the meaning assigned to the term "Unrestricted Cash" or any comparable term defined in the Related Documents for each Collateral Loan, and in any case that "Unrestricted Cash" or such comparable term is not defined in such Related Documents, all cash available for use for general corporate purposes and not held in any reserve account or legally or contractually restricted for any particular purposes or subject to any lien (other than blanket liens permitted under or granted in accordance with such Related Documents).

*"U.S. Government Securities Business Day"* 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.S. Person"* means any Person that is a "United States person" as defined in Section 7701(a)(30) of the Code.

*"U.S. Tax Compliance Certificate"* has the meaning assigned to such term in <u>Section 16.03(g)(iii)</u>.

*"Volcker Rule"* means Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules and regulations thereunder.

*"Weighted Average Advance Rate"* means, as of any date of determination, the weighted average of the Advance Rates applicable to the Eligible Collateral Loans on such day, weighted according to the proportion of the Borrowing Base that each such Eligible Collateral Loan included in the Collateral represents.

*"Weighted Average Coupon"* means, as of any date, an amount equal to the number, expressed as a percentage, obtained by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*summing* the products of (i) the stated interest coupon on each Fixed Rate Loan *multiplied by* (ii) the Principal Balance of such Fixed Rate Loan; and

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;*dividing* such sum by the Aggregate Principal Balance of all Fixed Rate Loans as of such date.

*"Weighted Average Coupon Test"* means a test that will be satisfied on any date of determination if the Weighted Average Coupon equals or exceeds 8.00%.

*"Weighted Average EBITDA"* means, as of any date of determination, the weighted average of EBITDA of the Obligors related to the Eligible Collateral Loans on such day, weighted according to the proportion of the Principal Balance that each such Eligible Collateral Loan included in the Collateral represents.

*"Weighted Average EBITDA Test"* means a test that will be satisfied on any date of determination if the Weighted Average EBITDA equals or exceeds $15,000,000.

*"Weighted Average Floating Spread"* means, as of any date, the number obtained by *dividing*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the amount equal to (i) the Aggregate Funded Spread (with respect to all Floating Rate Loans) *plus* (ii) the Aggregate Unfunded Spread, *by*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Aggregate Principal Balance of all Floating Rate Loans as of such date.

*"Weighted Average Life"* means, as of any date of determination with respect to all Eligible Collateral Loans, the number of years following such date obtained by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;*summing* the products of (i) the Average Life at such time of each Eligible Collateral Loan *multiplied by* (ii)(A) the Principal Balance *plus* (B) the Unfunded Amount of such Collateral Loan; 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;(b)&nbsp;&nbsp;&nbsp;&nbsp;*dividing* such sum by the sum of the Aggregate Principal Balance *plus* the Unfunded Amount of all Eligible Collateral Loans as of such date.

For the purposes of the foregoing, the *"Average Life"* is, on any date of determination with respect to any Eligible Collateral Loan, the quotient obtained by *dividing* (i) the sum of the products of (A) the number of years (rounded to the nearest one hundredth thereof) from such date of determination to the respective dates of each successive Scheduled Distribution of principal of such Collateral Loan and (B) the respective amounts of principal of such Scheduled Distributions by (ii) the sum of all successive Scheduled Distributions of principal on such Collateral Loan.

*"Weighted Average Life Test"* means a test that will be satisfied on any date of determination if the Weighted Average Life of the Collateral Loans as of such date is less than or equal to 6.0 years.

*"Weighted Average Spread Test"* means a test that will be satisfied on any date of determination if the Weighted Average Floating Spread equals or exceeds 5.00%.

*"Withdrawal Liability"* means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

*"Write-Down and Conversion Powers"* means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time

750499896 22723957

<u>751700376 22723957</u>

------

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.

*"Zero Coupon Obligation"* means a Collateral Loan that does not provide for periodic payments of interest in Cash or that pays interest only at its stated maturity.

*Section 1.02.Rules of Construction.* For all purposes of this Agreement and the other Facility Documents, except as otherwise expressly provided or unless the context otherwise requires (i) singular words shall connote the plural as well as the singular and vice versa (except as indicated), as may be appropriate, (ii) the words "herein," "hereof" and "hereunder" and other words of similar import used in any Facility Document refer to such Facility Document as a whole and not to any particular article, schedule, section, paragraph, clause, exhibit or other subdivision thereof, (iii) the headings, subheadings and table of contents set forth in any Facility Document are solely for convenience of reference and shall not constitute a part of such Facility Document nor shall they affect the meaning, construction or effect of any provision thereof, (iv) references in any Facility Document to "include" or "including" shall mean include or including, as applicable, without limiting the generality of any description preceding such term, and for purposes thereof the rule of ejusdem generis shall not be applicable to limit a general statement, followed by or referable to an enumeration of specific matters, to matters similar to those specifically mentioned, (v) each of the parties to this Agreement and its counsel have reviewed and revised, or requested revisions to, this Agreement, and the rule of construction that any ambiguities are to be resolved against the drafting party shall be inapplicable in the construction and interpretation of this Agreement, (vi) any definition of or reference to any Facility Document, agreement, instrument or other document shall be construed as referring to such Facility Document, agreement, instrument or other document as from time to time amended, restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications set forth herein or therein), (vii) any reference in any Facility Document, including the introduction and recitals to such Facility Document, to any Person shall be construed to include such Person's successors and assigns (subject to any restrictions set forth herein or in any other applicable agreement), (viii) any reference to any Law herein shall refer to such Law as amended, modified, replaced or supplemented from time to time, (ix) any Event of Default or Collateral Manager Termination Event shall be continuing until expressly waived in writing by the requisite Lenders, (x) unless otherwise provided in any Facility Document, all references to time of day refer to Eastern standard time or Eastern daylight savings time, as in effect in New York City on such day, (xi) when the performance of any covenant, duty or obligation under any Facility Document is required to be performed on a day which is not a Business Day, the date of such performance shall extend to the next succeeding Business Day and (xii) if any payment required by any Facility Document becomes due on a day which is not a Business Day, such payment may be made on the next succeeding Business Day. Any direction or order required hereunder relating to the purchase, acquisition, sale, disposition or other transfer of the Collateral may be in the form of a Trade Ticket from the Borrower on which the Collateral Agent and Collateral Administrator may rely. Furthermore, with respect to any instruction to the Collateral Agent hereunder relating to the transfer of amounts on deposit in any of the Accounts, a copy of such instruction shall also be required to be given to the Collateral Administrator.

750499896 22723957

<u>751700376 22723957</u>

------

*Section 1.03.Computation of Time Periods*. Unless otherwise stated in the applicable Facility Document, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including", the word "through" means "to and including" and the words "to" and "until" both mean "to but excluding". Periods of days referred to in any Facility Document shall be counted in calendar days unless Business Days are expressly prescribed.

*Section 1.04.Collateral Value Calculation Procedures*. In connection with all calculations required to be made pursuant to this Agreement with respect to Scheduled Distributions on any Collateral Loans, or any payments on any other assets included in the Collateral, with respect to the sale of and reinvestment in Collateral Loans, and with respect to the income that can be earned on Scheduled Distributions on such Collateral Loans and on any other amounts that may be received for deposit in the Collection Account, the provisions set forth in this <u>Section 1.04</u> shall be applied. The provisions of this <u>Section 1.04</u> shall be applicable to any determination or calculation that is covered by this <u>Section 1.04</u>, whether or not reference is specifically made to <u>Section 1.04</u>, unless some other method of calculation or determination is expressly specified in the particular provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All calculations with respect to Scheduled Distributions on the Collateral Loans shall be made on the basis of information as to the terms of each such Collateral Loan and upon reports of payments, if any, received on such Collateral Loans that are furnished by or on behalf of the Obligor of such Collateral Loans and, to the extent they are not manifestly in error, such information or reports may be conclusively relied upon in making such calculations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For purposes of calculating the Coverage Tests and the Maximum Advance Rate Default Test, except as otherwise specified in the Coverage Tests or the Maximum Advance Rate Default Test, such calculations will not include (i) scheduled interest and principal payments on Defaulted Collateral Loans and Ineligible Collateral Loans unless or until such payments are actually made and (ii) ticking fees and other similar fees in respect of Collateral Loans, unless or until such fees are actually paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)For each Collection Period and as of any date of determination, the Scheduled Distribution on any Collateral Loans (other than Defaulted Collateral Loans and Ineligible Collateral Loans, which, except as otherwise provided herein, shall be assumed to have Scheduled Distributions of zero) shall be the total amount of payments and collections to be received during such Collection Period in respect of such Collateral Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Scheduled Distribution received with respect to a Collateral Loan shall be assumed to be received on the applicable Due Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)References in the Priority of Payments to calculations made on a "*pro forma* basis" shall mean such calculations after giving effect to all payments, in accordance with the Priority of Payments, that precede (in priority of payment) or include the clause in which such calculation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)For purposes of calculating all Concentration Limitations, in both the numerator and the denominator of any component of the Concentration Limitations, Ineligible Collateral Loans will be treated as having a Principal Balance equal to zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Determinations of the Collateral Loans, or portions thereof, that constitute Excess Concentration Amounts will be determined in the way that produces the highest Borrowing Base at the time of determination, it being understood that a Collateral Loan (or portion thereof) that falls into more than one category of Collateral Loans will be deemed, solely for purposes of such

750499896 22723957

<u>751700376 22723957</u>

------

determinations, to fall only into the category that produces the highest such Borrowing Base at such time (without duplication).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Except as otherwise provided herein, the Defaulted Collateral Loan Balance for Defaulted Collateral Loans will be included in the calculation of the Collateral Quality Tests and Ineligible Collateral Loans will not be included in the calculation of the Collateral Quality Tests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)For purposes of determining the Weighted Average Spread Test and the Weighted Average Coupon Test (and related computations of stated interest coupons and Aggregate Funded Spread), capitalized or deferred interest (and any other interest that is not required to be paid in cash) will be excluded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)References in this Agreement to the Borrower's "purchase" or "acquisition" of a Collateral Loan include references to the Borrower's acquisition of such Collateral Loan by way of a sale and/or contribution from the Parent and the Borrower's making or origination of such Collateral Loan. Portions of the same Collateral Loan acquired by the Borrower on different dates (whether through purchase, receipt by contribution or the making or origination thereof, but excluding subsequent draws under Revolving Collateral Loans or Delayed Drawdown Collateral Loans) will, for purposes of determining the purchase price of such Collateral Loan, be treated as separate purchases on separate dates (and not a weighted average purchase price for any particular Collateral Loan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)For the purposes of calculating compliance with each of the Concentration Limitations all calculations will be rounded to the nearest 0.01%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Notwithstanding any other provision of this Agreement to the contrary, all monetary calculations under this Agreement shall be in Dollars. For purposes of this Agreement, calculations with respect to all amounts received or required to be paid in a currency other than Dollars shall be valued at zero.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)For purposes of calculating compliance with any test under this Agreement in connection with the acquisition or disposition of a Collateral Loan or Eligible Investment, the trade date (and not the settlement date) with respect to any such Collateral Loan or Eligible Investment under consideration for acquisition or disposition shall be used to determine whether such acquisition or disposition is permitted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)With respect to each of the Collateral Agent and the Collateral Administrator, in case any reasonable question arises as to the interpretation of a calculation hereunder or the other Facility Documents, each of Collateral Agent and the Collateral Administrator may request instructions from the Administrative Agent and shall (i) be entitled at all times to refrain from taking any actions unless it has received instruction from the Administrative Agent and (ii) act in accordance with instructions received from the Administrative Agent.

*Section 1.05.Divisions.* For all purposes under the Facility 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.

*Section 1.06.Rates*. The Administrative Agent does not warrant or accept responsibility for, and shall not have any liability (except as provided herein) with respect to (a) the continuation of, administration of, submission of, calculation of or any other matter related to the

750499896 22723957

<u>751700376 22723957</u>

------

Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any component definition thereof or rates referred to in the definition thereof, or any alternative, successor or replacement rate thereto (including any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement rate (including any Benchmark Replacement) will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, Base Rate, the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its affiliates or other related entities may engage in transactions that affect the calculation of Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto, in each case, in a manner adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate, Term SOFR, Adjusted Term SOFR or any other Benchmark, in each case pursuant to the terms of this Agreement, and shall have no liability to the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**Article II**<br>**ADVANCES**

*Section 1.01.Revolving Credit Facility*. On the terms and subject to the conditions hereinafter set forth, including <u>Article III</u>, each Lender severally agrees to make Advances (including, in the case of the Swingline Lender, any Swingline Advances) from time to time on any Business Day during the Reinvestment Period (or immediately thereafter pursuant to <u>Section 8.04</u>), on a *pro rata* basis in each case in an aggregate principal amount at any one time outstanding up to but not exceeding such Lender's Commitment and, as to all Lenders, in an aggregate principal amount up to but not exceeding the Maximum Available Amount as then in effect. For the avoidance of doubt, each Lender's obligation to refund Swingline Advances pursuant to Section 2.15 shall constitute usage of its Commitment. Each such borrowing of an Advance on any single day is referred to herein as a *"Borrowing"*. Within such limits and subject to the other terms and conditions of this Agreement, the Borrower may borrow (and re-borrow) Advances under this <u>Section 2.01</u> and prepay Advances under <u>Section 2.05</u>. On the terms and conditions hereinafter set forth, from time to time from the Closing Date until the end of the Reinvestment Period, the Borrower may request the Swingline Lender to make Swingline Advances to the Borrower, secured by the Collateral; <u>provided</u> that the Swingline Lender shall not fund any Swingline Advance if, after giving effect to the amount of the Swingline Advance requested, the aggregate principal amount of Advances outstanding would exceed the Borrowing Base. Advances to be made for the purpose of refunding Swingline Advances shall be made by the Lenders as provided in <u>Section 2.15</u>.

*Section 1.02.Making of the Advances*. (a) If the Borrower desires to make a Borrowing under this Agreement, the Borrower, or the Collateral Manager on its behalf, shall give each Lender, the Administrative Agent and the Collateral Agent (with a copy to the Collateral Administrator) a written notice (each, a *"Notice of Borrowing"*) for such Borrowing (which notice shall be irrevocable and effective upon receipt) not later than 2:00 p.m. at least one (1) Business Day (or such shorter time as may be mutually agreed upon by the Borrower and the Administrative Agent) prior to the day of the requested Borrowing; <u>provided</u> that any Notice of Borrowing requesting a Swingline Advance (which notice the Administrative Agent shall

750499896 22723957

<u>751700376 22723957</u>

------

forward to the Swingline Lender and each Lender), shall be delivered not later than 12:00 noon on the day of the requested Borrowing.

Each Notice of Borrowing shall be substantially in the form of <u>Exhibit A</u>, dated the date the request for the related Borrowing is being made, signed by a Responsible Officer of the Borrower or the Collateral Manager, as applicable, shall attach a Borrowing Base Calculation Statement (which Borrowing Base Calculation Statement shall give *pro forma* effect to any Collateral Loans being acquired with the proceeds of such Borrowing on such date or the following Business Day) and shall otherwise be appropriately completed. The proposed Borrowing Date specified in each Notice of Borrowing shall be a Business Day falling on or prior to the Commitment Termination Date, and the amount of the Borrowing requested in such Notice of Borrowing (the *"Requested Amount"*) shall be equal to at least $500,000 or an integral multiple of $100,000 in excess thereof (or, if less, the remaining unfunded Commitments hereunder or, in the case of Revolving Collateral Loans and Delayed Drawdown Collateral Loans, such lesser amount required to be funded by the Borrower in respect thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Lender shall, not later than 12:00 noon on each Borrowing Date in respect of Advances (other than Swingline Advances), make its Percentage of the applicable Requested Amount available to the Borrower by disbursing such funds in Dollars to the Principal Collection Account (or in accordance with the wire instructions delivered in connection with the Notice of Borrowing). In the case of a Swingline Advance, upon satisfaction of the applicable conditions set forth in <u>Article III</u>, the Swingline Lender shall make available to or at the direction of the Borrower in same day funds by wire transfer to the Principal Collection Account (or in accordance with the wire instructions delivered in connection with the Notice of Borrowing) an amount equal to the least of (i) the amount requested by the Borrower for such Swingline Advance, (ii) the positive difference between (A) the Swingline Commitment then in effect and (B) the aggregate principal balance of Swingline Advances outstanding as of such date, (iii) the maximum amount that, after taking into account the proposed use of the proceeds of such Swingline Advance, could be advanced to the Borrower hereunder without causing the aggregate principal balance of Advances outstanding to exceed the Borrowing Base and (iv) the unused Commitment at such time of Truist as Lender.

*Section 1.03.Evidence of Indebtedness*. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to it and resulting from the Advances made by such Lender to the Borrower, from time to time, including the amounts of principal and interest thereon and paid to it, from time to time hereunder, *provided* that the failure of any Lender to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Advances in accordance with the terms of this Agreement. Each of the Collateral Agent and the Collateral Administrator shall be entitled to conclusively rely upon the information provided to it by the Administrative Agent with respect to the Advances outstanding with respect to each Lender.

*Section 1.04.Payment of Principal and Interest*. The Borrower shall pay principal and Interest on the Advances as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)100% of the outstanding principal amount of each Advance, together with all accrued and unpaid Interest thereon, shall be payable on the Final Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Interest shall accrue on the unpaid principal amount of each Advance from the date of such Advance until such principal amount is paid in full. The Administrative Agent shall determine the unpaid Interest and Commitment Fees payable thereto prior to each Payment Date using the applicable Interest Rate for the related Interest Accrual Period to be paid by the Borrower on each Payment Date for the related Interest Accrual Period and shall send a consolidated invoice of all such Interest and Commitment Fees to the Borrower on the fifth

750499896 22723957

<u>751700376 22723957</u>

------

calendar day of each month (or, if such day is not a Business Day, the next succeeding Business Day).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Accrued Interest shall be payable in arrears (x) on each Payment Date, and (y) in connection with any prepayment of the Advances pursuant to <u>Section 2.05(a)</u>; *provided* that (i) with respect to any prepayment in full of the Advances outstanding, accrued Interest on such amount through the date of prepayment may be payable on such date or as otherwise agreed to between the Lenders and the Borrower and (ii) with respect to any partial prepayment of the Advances outstanding, accrued Interest on such amount through the date of prepayment shall be payable on the Payment Date following such prepayment (or on such date of prepayment if requested by the Administrative Agent); *provided* that any Swingline Advance repaid on the date of borrowing shall accrue one day's interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Subject in all cases to <u>Section 2.04(f)</u>, the obligation of the Borrower to pay the Obligations, including the obligation of the Borrower to pay the Lenders the outstanding principal amount of the Advances and accrued interest thereon, shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms hereof (including <u>Section 2.14</u>), under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which the Borrower or any other Person may have or have had against any Secured Party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)As a condition to the payment of principal of and Interest on any Advance without the imposition of withholding tax, the Borrower or any Agent may require certification acceptable to it to enable the Borrower and the Agents to determine their duties and liabilities with respect to any taxes or other charges that they may be required to deduct or withhold from payments in respect of such Advance under any present or future Law of the United States and any other applicable jurisdiction, or any present or future Law of any political subdivision thereof or taxing authority therein or to comply with any reporting or other requirements under any such Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Notwithstanding any other provision of this Agreement, the obligations of the Borrower under this Agreement are limited recourse obligations of the Borrower payable solely from the Collateral in accordance with the Priority of Payments and, following realization of the Collateral, and application of the proceeds thereof in accordance with the Priority of Payments and, subject to <u>Section 2.12</u>, all obligations of and any claims against the Borrower hereunder or in connection herewith after such realization shall be extinguished and shall not thereafter revive. No recourse shall be had against any officer, director, employee, shareholder, Affiliate, member, manager, agent, partner, principal or incorporator of the Borrower or their respective successors or assigns for any amounts payable under this Agreement. It is understood that the foregoing provisions of this <u>clause (f)</u> shall not (i) prevent recourse to the Collateral for the sums due or to become due under any security, instrument or agreement which is part of the Collateral or (ii) constitute a waiver, release or discharge of any indebtedness or obligation evidenced by this Agreement until such Collateral has been realized. It is further understood that the foregoing provisions of this <u>clause (f)</u> shall not limit the right of any Person to name the Borrower as a party defendant in any proceeding or in the exercise of any other remedy under this Agreement, so long as no judgment in the nature of a deficiency judgment or seeking personal liability shall be asked for or (if obtained) enforced against the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)In connection with the use or administration of Term SOFR, the Administrative Agent (in consultation with the Borrower) will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Facility Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Facility Document. The Administrative Agent will promptly notify the Borrower and the Lenders of the

750499896 22723957

<u>751700376 22723957</u>

------

effectiveness of any Conforming Changes in connection with the use or administration of Term SOFR.

*Section 1.05.Prepayment of Advances*. (a) *Optional Prepayments.* The Borrower may, from time to time on any Business Day, voluntarily prepay Advances in whole or in part, without penalty or premium; *provided* that the Borrower shall have delivered to the Collateral Agent, the Collateral Administrator, the Lenders and the Administrative Agent written notice of such prepayment (such notice, a *"Notice of Prepayment"*) in the form of <u>Exhibit B</u> not later than 2:00 p.m. one (1) Business Day prior to the date of such prepayment (*provided* that same day notice may be given to cure any noncompliance with the Maximum Advance Rate Test or the Maximum Advance Rate Default Test). The Borrower may also apply Principal Proceeds on deposit in the Principal Collection Account to prepay the Advances in accordance with <u>Section 8.02(b)</u>. Each such Notice of Prepayment shall be irrevocable and effective upon receipt and shall be dated the date such notice is being given, signed by a Responsible Officer of the Borrower and otherwise appropriately completed. Each prepayment of any Advance by the Borrower pursuant to this <u>Section 2.05(a)</u> (other than a prepayment made in order to cure any non-compliance with the Maximum Advance Rate Test or the Maximum Advance Rate Default Test) shall in each case be in a principal amount of at least $500,000 or, if less, the entire outstanding principal amount of the Advances of the Borrower. If a Notice of Prepayment is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Mandatory Prepayments.* The Borrower shall prepay the Advances on each Payment Date in the manner and to the extent provided in the Priority of Payments. The Borrower shall provide, in each Monthly Report, notice of the aggregate amounts of Advances that are to be prepaid on the related Payment Date in accordance with the Priority of Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Additional Prepayment Provisions.* Each prepayment pursuant to this <u>Section 2.05</u> shall be subject to <u>Sections 2.04(c)</u> and <u>2.10</u> and applied to the Advances in accordance with the Lenders' respective Percentages.

*Section 1.06.Changes of Commitments*. (a) *Automatic Reduction and Termination.* Subject to the provisions of <u>Section 8.04</u>, the Commitments of all Lenders shall be automatically reduced to zero at 5:00 p.m. on the Commitment Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*Optional Reductions.* Prior to the Commitment Termination Date, the Borrower shall have the right to terminate or reduce the unused amount of the Facility Amount at any time or from time to time upon not less than one (1) Business Day's prior notice to the Collateral Agent, the Lenders, the Collateral Administrator and the Administrative Agent of each such termination or reduction, which notice shall specify the effective date of such termination or reduction and the amount of any such termination or reduction; *provided* that (i) the amount of any such reduction of the Facility Amount shall be equal to at least $500,000 or an integral multiple of $100,000 in excess thereof or, if less, the remaining unused portion thereof, and (ii) no such reduction will reduce the Facility Amount below the sum of (x) aggregate principal amount of Advances outstanding at such time and (y) the Unfunded Amount at such time. Such notice of termination or reduction shall be irrevocable and effective only upon receipt and shall be applied *pro rata* to reduce the respective Commitments of each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*Effect of Termination or Reduction.* The Commitments of the Lenders once terminated or reduced may not be reinstated. Each reduction of the Facility Amount pursuant to this <u>Section 2.06</u> shall be applied ratably among the Lenders in accordance with their respective Commitments.

750499896 22723957

<u>751700376 22723957</u>

------

*Section 1.07.Maximum Lawful Rate*. It is the intention of the parties hereto that the interest on the Advances shall not exceed the maximum rate permissible under Applicable Law. Accordingly, anything herein to the contrary notwithstanding, in the event any interest is charged to, collected from or received from or on behalf of the Borrower by the Lenders pursuant hereto or thereto in excess of such maximum lawful rate, then the excess of such payment over that maximum shall be applied first to the payment of amounts then due and owing by the Borrower to the Secured Parties under this Agreement (other than in respect of principal of and interest on the Advances) and then to the reduction of the outstanding principal amount of the Advances of the Borrower.

*Section 1.08.Several Obligations*. The failure of any Lender to make any Advance to be made by it on the date specified therefor shall not relieve any other Lender of its obligation to make its Advance on such date. None of the Agents shall be responsible for the failure of any Lender to make any Advance, and no Lender shall be responsible for the failure of any other Lender to make an Advance required to be made by such other Lender.

*Section 1.09.Increased Costs*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Increased Costs Generally*. If any Change in Law shall:

&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)impose, modify or deem applicable any reserve (including pursuant to regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, special, supplemental or other marginal reserve requirement) with respect to eurocurrency funding (currently referred to as "Eurocurrency liabilities" in Regulation D)), special deposit, compulsory loan, insurance charge or similar requirement against assets of, deposits with or for the account of, or credit extended or participated in by, any Lender;

&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)subject any Affected Person 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; or

&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)impose on any Affected Person any other condition, cost or expense (other than Taxes) affecting this Agreement or Advances made by such Affected Person;

and the result of any of the foregoing shall be to increase the cost to such Affected Person of making, continuing, converting into or maintaining any SOFR Borrowing (or maintaining its obligation to make any such SOFR Borrowing) or to reduce the amount of any sum received or receivable by such Affected Person hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount or amounts as will compensate such Affected Person for such additional costs incurred or reduction suffered as specified in a certificate delivered to the Borrower pursuant to <u>clause (c)</u> of this <u>Section 2.09</u>; *provided* that the Borrower shall only be obligated to reimburse for such additional amount or amounts under this <u>clause (a)</u> to the extent such amounts being requested are consistent with amounts that such Affected Person is generally charging similarly situated borrowers under similar credit facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Capital Requirements*. If any Affected Person determines that any Change in Law regarding capital or liquidity requirements has or would have the effect of reducing the rate of return on such Affected Person's capital or on the capital of such Affected Person's holding company, if any, as a consequence of this Agreement or the Advances made by such Affected Person to a level below that which such Affected Person or such Affected Person's holding company could have achieved but for such Change in Law (taking into consideration such

750499896 22723957

<u>751700376 22723957</u>

------

Affected Person's policies and the policies of such Affected Person's holding company with respect to capital adequacy and liquidity coverage), by an amount deemed to be material by such Affected Person, then from time to time the Borrower will pay to such Affected Person in Dollars, such additional amount or amounts as will compensate such Affected Person or such Affected Person's holding company for any such reduction suffered or charge imposed; *provided* that (x) the amounts payable under this <u>Section 2.09</u> shall be without duplication of amounts payable under <u>Section 16.03</u> and shall not include any Excluded Taxes; and (y) the Borrower shall only be obligated to reimburse for such amounts under this <u>clause (b)</u> to the extent such amounts are consistent with amounts that such Affected Person is generally charging similarly situated borrowers under similar credit facilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Certificates from Lenders*. A certificate of an Affected Person setting forth in reasonable detail the basis for such demand and the amount or amounts, in Dollars, necessary to compensate such Affected Person or its holding company as specified in <u>clause (a)</u> or <u>(b)</u> of this <u>Section 2.09</u> shall be promptly delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such amount shown as due on any such certificate on the next Payment Date after receipt thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Delay in Requests*. Failure or delay on the part of any Affected Person to demand compensation pursuant to this <u>Section 2.09</u> shall not constitute a waiver of such Affected Person's right to demand such compensation; *provided* that the Borrower shall not be required to compensate an Affected Person pursuant to this <u>Section 2.09</u> for any increased costs, reductions, penalties or interest incurred more than six months prior to the date that such Affected Person notifies the Borrower of the Change in Law giving rise to any increased costs or reductions and of such Affected Person's intention to claim compensation therefor; *provided further* that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Lending Office*. Upon the occurrence of any event giving rise to the Borrower's obligation to pay additional amounts to a Lender pursuant to <u>clauses (a)</u> or <u>(b)</u> of this <u>Section 2.09</u>, such Lender will, if requested by the Borrower, use reasonable efforts (subject to overall policy considerations of such Lender) to designate a different lending office if such designation would reduce or obviate the obligations of the Borrower to make future payments of such additional amounts; *provided* that such designation is made on such terms that such Lender and its lending office suffer no unreimbursed cost or material legal or regulatory disadvantage (as reasonably determined by such Lender), with the object of avoiding future consequence of the event giving rise to the operation of any such provision.

*Section 1.10.Compensation; Breakage Payments*. The Borrower agrees to compensate each Affected Person from time to time, on the Payment Date (or on the applicable date of prepayment), following such Affected Person's written request (which request shall set forth the basis for requesting such amounts), in accordance with the Priority of Payments for all reasonable losses, expenses and liabilities (including any interest paid by such Affected Person to lenders of funds borrowed to make or carry an Advance computed by reference to the then-current Benchmark and any loss sustained by such Affected Person in connection with the re-employment of such funds but excluding loss of anticipated profits), which such Affected Person may sustain: (i) if for any reason (including any failure of a condition precedent set forth in <u>Article III</u> but excluding a default by the applicable Lender) any Advance computed by reference to the then-current Benchmark by the Borrower does not occur on the Borrowing Date specified therefor in the applicable Notice of Borrowing delivered by the Borrower, (ii) if any payment, prepayment or conversion of any of the Borrower's Advances occurs on a date that is not the last day of the relevant Interest Accrual Period, (iii) if any payment or prepayment of any Advance computed by reference to the then-current Benchmark is not made on a Payment Date or pursuant to a Notice of Prepayment given by the Borrower or (iv) as a consequence of any other

750499896 22723957

<u>751700376 22723957</u>

------

default by the Borrower to repay its Advances when required by the terms of this Agreement. A certificate as to any amounts payable pursuant to this <u>Section 2.10</u> submitted to the Borrower by any Lender (with a copy to the Agents, and accompanied by a reasonably detailed calculation of such amounts and a description of the basis for requesting such amounts) shall be conclusive in the absence of manifest error.

*Section 1.11.Illegality; Inability to Determine Rates; Benchmark Replacement Setting*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Inability to Determine SOFR*. Subject to <u>paragraphs (b)</u> through and <u>(f)</u> below, if, prior to the commencement of any Interest Accrual Period for any SOFR Borrowing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Administrative Agent shall have determined (which determination shall be conclusive absent manifest error) that "Adjusted Term SOFR" cannot be determined pursuant to the definition thereof, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)the Administrative Agent shall have received notice from the Required Lenders that Adjusted Term SOFR for such Interest Accrual Period will not adequately and fairly reflect the cost to such Lenders of making, funding or maintaining their SOFR Borrowings for such Interest Accrual Period,

then the Administrative Agent shall give written notice thereof (or telephonic notice, promptly confirmed in writing) to the Borrower and to the Lenders as soon as practicable thereafter.

Upon notice thereof by the Administrative Agent to the Borrower, any obligation of the Lenders to make SOFR Borrowings, and any right of the Borrower to continue SOFR Borrowings or to convert Advances computed by reference to the Base Rate to SOFR Borrowings, shall be suspended (to the extent of the affected SOFR Borrowings or affected Interest Accrual Periods) until the Administrative Agent revokes such notice. Upon receipt of such notice, (i) the Borrower may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Borrowings (to the extent of the affected SOFR Borrowings or affected Interest Accrual 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 an Advance computed by reference to the Base Rate in the amount specified therein and (ii) any outstanding affected SOFR Borrowings will be deemed to have been converted into an Advance computed by reference to the Base Rate at the end of the applicable Interest Accrual Period. Upon any such conversion, the Borrower shall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to <u>Section 2.09</u>. Subject to <u>paragraphs (b)</u> through <u>(f)</u> below, if the Administrative Agent determines (which determination shall be conclusive and binding absent manifest error) that "Adjusted Term SOFR" cannot be determined pursuant to the definition thereof on any given day, the interest rate on Advances computed by reference to the Base Rate shall be determined by the Administrative Agent without reference to <u>clause (c)</u> of the definition of "Base Rate" until the Administrative Agent revokes such determination. If the Benchmark Replacement is Daily Simple SOFR, all Interest payments will be payable on a monthly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Benchmark Replacement*. Notwithstanding anything to the contrary herein or in any other Facility Document, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred prior any setting of the then-current Benchmark, then (x) if a Benchmark Replacement is determined in accordance with <u>clause (a)</u> 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 Facility 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 Facility Document and (y) if a Benchmark Replacement is determined in accordance with <u>clause (b)</u> of the definition of "Benchmark Replacement" for such Benchmark Replacement Date, such

750499896 22723957

<u>751700376 22723957</u>

------

Benchmark Replacement will replace such Benchmark for all purposes hereunder and under any Facility 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 the Lenders without any amendment to, or further action or consent of any other party to, this Agreement or any other Facility Document so long as the Administrative Agent has not received, by such time, written notice of objection to such Benchmark Replacement from Lenders comprising the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Benchmark Replacement Conforming Changes*. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent (in consultation with the Borrower) will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Facility Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Facility Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Notices; Standards for Decisions and Determinations*. The Administrative Agent will promptly notify the Borrower, the Collateral Agent, the Collateral Administrator and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will notify the Borrower of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to <u>Section 2.11(e)</u> and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Administrative Agent or, if applicable, any Lender (or group of Lenders) pursuant to this <u>Section 2.11</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 or any selection, 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 to this Agreement or any other Facility Document, except, in each case, as expressly required pursuant to this <u>Section 2.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Unavailability of Tenor of Benchmark*. Notwithstanding anything to the contrary herein or in any other Facility Document, 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 Accrual 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 <u>clause (i)</u> 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 Accrual 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;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Benchmark Unavailability Period*. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a SOFR Borrowing of, conversion to or continuation of SOFR Borrowings 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

750499896 22723957

<u>751700376 22723957</u>

------

conversion to Advances computed by reference to the Base Rate. 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 the Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of the Base Rate. None of the Collateral Agent, the Custodian, the Document Custodian or the Collateral Administrator will have any responsibility for the selection or determination of an alternate benchmark rate or other replacement index, or any liability for any failure or delay in performing their duties hereunder solely as a result of the unavailability of a benchmark rate during a Benchmark Unavailability Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Illegality.* If any Change in Law shall make it unlawful or impossible for any Lender to perform any of its obligations hereunder, to make, maintain or fund any SOFR Borrowing or to determine or charge interest rates based upon SOFR, the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR and such Lender shall so notify the Administrative Agent, the Administrative Agent shall promptly give notice thereof to the Borrower and the other Lenders, whereupon until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make SOFR Borrowings, or to continue or convert outstanding Advances as or into SOFR Borrowings, shall be suspended. In the case of the making of a SOFR Borrowing, such Lender's Advance shall be made as an Advance computed by reference to the Base Rate as part of the same Borrowing for the same Interest Accrual Period and, if the affected SOFR Borrowing is then outstanding, such Advance shall be converted to an Advance computed by reference to the Base Rate either (i) on the last day of the then current Interest Accrual Period applicable to such SOFR Borrowing if such Lender may lawfully continue to maintain such Advance to such date or (ii) immediately if such Lender shall determine that it may not lawfully continue to maintain such SOFR Borrowing to such date. Notwithstanding the foregoing, the affected Lender shall, prior to giving such notice to the Administrative Agent, use reasonable efforts to designate a different lending office if such designation would avoid the need for giving such notice and if such designation would not otherwise be disadvantageous to such Lender in the good faith exercise of its discretion. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section 2.09</u>.

*Section 1.12.Rescission or Return of Payment*. The Borrower agrees that, if at any time (including after the occurrence of the Final Maturity Date) all or any part of any payment theretofore made by it to any Secured Party or any designee of a Secured Party is or must be rescinded or returned for any reason whatsoever (including the insolvency, bankruptcy or reorganization of the Borrower or any of its Affiliates), the obligation of the Borrower to make such payment to such Secured Party shall, for the purposes of this Agreement, to the extent that such payment is or must be rescinded or returned, be deemed to have continued in existence and this Agreement and any other applicable Facility Document shall continue to be effective or be reinstated, as the case may be, as to such obligations, all as though such payment had not been made.

*Section 1.13.Past Due Interest*. The Borrower shall pay interest on all Obligations (other than principal and interest on the Advances, where the default rate is reflected in the Applicable Margin) that are not paid when due for the period from the due date thereof until the date the same is paid in full at the Past Due Rate. Interest payable at the Past Due Rate shall be payable on each Payment Date in accordance with the Priority of Payments.

*Section 1.14.Payments Generally*. (a) All amounts owing and payable to any Secured Party, any Affected Person or any Indemnified Party, in respect of the Advances and other Obligations, including the principal thereof, interest, fees, indemnities, expenses or other amounts payable under this Agreement or any other Facility Document, shall be paid by the

750499896 22723957

<u>751700376 22723957</u>

------

Borrower to the applicable recipient in Dollars, in immediately available funds, in accordance with the Priority of Payments, and all without counterclaim, setoff, deduction, defense, abatement, suspension or deferment. Each Lender shall provide wire instructions (and any other information reasonably requested in order to effect any payment hereunder) to the Borrower, the Administrative Agent and the Collateral Agent. All payments made by the Collateral Agent pursuant to a Monthly Report on any Payment Date shall be wired by the Collateral Agent by 2:00 p.m. on such Payment Date. Prepayments to be made pursuant to <u>Section 2.05</u> for which the Collateral Agent and the Collateral Administrator has received a Notice of Prepayment one (1) Business Day prior to the scheduled date of prepayment shall be wired by the Collateral Agent by 12:00 noon on such date. All other payments by the Borrower must be received by the Collateral Agent on or prior to 1:00 p.m. on a Business Day (the Collateral Agent shall then wire such funds to the Lenders by 3:00 p.m. on such Business Day); *provided* that, payments received by the Collateral Agent after 1:00 p.m. or payments received by the Lenders after 3:00 p.m. on a Business Day will be deemed to have been paid on the next following Business Day. For the avoidance of doubt, for purposes of <u>Section 6.01</u>, amounts paid by the Borrower shall be deemed received upon payment by the Borrower to the Collateral Agent. At no time will the Collateral Agent have any duty (express or implied) to fund (or front or advance) any amount owing by the Borrower hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Except as otherwise expressly provided herein, all computations of interest, fees and other Obligations shall be made on the basis of a year of 360 days for the actual number of days elapsed in computing interest on any Advance, the date of the making of the Advance shall be included and the date of payment shall be excluded; *provided* that, if an Advance (including any Swingline Advance) is repaid on the same day on which it is made, one day's Interest shall be paid on such Advance. All computations made by a Lender, the Collateral Agent, the Collateral Administrator or the Administrative Agent under this Agreement or any other Facility Document shall be conclusive absent manifest error.

*Section 1.15.Refunding of Swingline Advances.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Swingline Advance shall be refunded by the Lenders (other than the Swingline Lender) on the second Business Day following the date of such Swingline Advance (each such date, a "*Swingline Refund Date*"). Such refunding shall be made by the Lenders ratably in accordance with their respective Percentages and shall thereafter be reflected as Advances of the Lenders on the books and records of the Administrative Agent. Each Lender shall fund its respective pro rata share of Advances as required to repay Swingline Advances outstanding to the Swingline Lender no later than 12:00 noon on the applicable Swingline Refund Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Borrower shall pay to the Swingline Lender, within five (5) days of demand, the amount of such Swingline Advances to the extent amounts received from the Lenders are not sufficient to repay in full the outstanding Swingline Advances requested or required to be refunded. If any portion of any such amount paid to the Swingline Lender shall be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the amount so recovered shall be ratably shared among all the Lenders (other than the Swingline Lender) in accordance with their respective Percentages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Each Lender acknowledges and agrees that its obligation to refund Swingline Advances in accordance with the terms of this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including non-satisfaction of the conditions set forth in <u>Article III</u>. Further, each Lender agrees and acknowledges that, if prior to the refunding of any outstanding Swingline Advances pursuant to this Section, an Insolvency Event relating to the Borrower shall have occurred, each Lender will, on the date the applicable Advance would have been made, purchase an undivided participating interest in the Swingline Advance to be

750499896 22723957

<u>751700376 22723957</u>

------

refunded in an amount equal to its Percentage of the aggregate outstanding amount of such Swingline Advance. Each Lender will immediately transfer to the Swingline Lender, in immediately available funds, the amount of its participation and upon receipt thereof the Swingline Lender will deliver to such Lender a certificate evidencing such participation dated the date of receipt of such funds and for such amount. Whenever, at any time after the Swingline Lender has received from any Lender such Lender's participating interest in a Swingline Advance, the Swingline Lender receives any payment on account thereof, the Swingline Lender will distribute to such Lender its participating interest in such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender's participating interest was outstanding and funded).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Notwithstanding anything contained in this Agreement to the contrary, the Swingline Lender shall not be obligated to make any Swingline Advance at a time when any other Lender is a Defaulting Lender, unless the Swingline Lender has entered into arrangements (which may include the delivery of cash collateral) with the Borrower or such Defaulting Lender which are satisfactory to the Swingline Lender to eliminate the Swingline Lender's Fronting Exposure (without giving effect to <u>Section 2.16(a)(iii)</u>) with respect to any such Defaulting Lender.

*Section 1.16.Defaulting Lenders*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as such Lender is no longer a Defaulting Lender, to the extent permitted by 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;(i)Such Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section 16.01(d)</u>.

&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)*Defaulting Lender Waterfall*. Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to <u>Article VI</u> or otherwise) shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by such Defaulting Lender to the Administrative Agent hereunder; *second*, to the payment of any amounts owing by that Defaulting Lender to the Swingline Lender hereunder; *third*, if so determined by the Administrative Agent or requested by the Swingline Lender, to be held as cash collateral for future funding obligations of that Defaulting Lender for any participation in any Swingline Advance; *fourth*, as the Borrower may request (so long as no Default or Event of Default exists), to the funding of any Advance in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *fifth*, if so determined by the Administrative Agent and the Borrower, to be held as cash collateral for future funding obligations of such Defaulting Lender to fund Advances under this Agreement; *sixth*, to the payment of any amounts owing to the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; *seventh*, so long as no Default or Event of Default exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by the Borrower against such Defaulting Lender as a result of such Defaulting Lender's breach of its obligations under this Agreement; and *eighth*, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that if (x) such payment is a payment of the principal amount of any Advances or funded participation in Swingline Advances in respect of which such Defaulting Lender has not

750499896 22723957

<u>751700376 22723957</u>

------

fully funded its appropriate share, and (y) such Advances were made at a time when the conditions set forth in <u>Section 3.02</u> were satisfied or waived, such payment shall be applied solely to pay the Advances of, and funded participation in Swingline Advances owed to, all non-Defaulting Lenders on a *pro rata* basis prior to being applied to the payment of any Advances of, and funded participation in Swingline Advances owed to, such Defaulting Lender until such time as all Advances are held by the Lenders *pro rata* in accordance with their Percentages of the Commitments. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this <u>Section 2.16(a)(ii)</u> shall be deemed paid to and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

&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)During any period in which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each non-Defaulting Lender to (a) acquire, refinance or fund participations in Swingline Advances pursuant to <u>Section 2.15</u> or (b) make Advances to the Borrower to repay a Swingline Advance pursuant to <u>Section 2.02</u>, the "Percentage" of each non-Defaulting Lender shall be computed without giving effect to the Commitment of that Defaulting Lender; <u>provided</u> that each such reallocation shall be given effect only if the aggregate obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Swingline Advances shall not exceed the positive difference, if any, of (A) the Commitment of that non-Defaulting Lender *minus* (B) the aggregate outstanding principal amount of the Advances of that Lender.

&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)For any period during which such Lender is a Defaulting Lender, such Lender shall not be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to that Defaulting Lender).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If the Administrative Agent and the Swingline Lender agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Lender will, to the extent applicable, purchase that portion of outstanding Advances of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Advances to be held on a *pro rata* basis by the Lenders in accordance with their respective Percentages of the Commitments, whereupon such Lender will cease to be a Defaulting Lender; *provided* that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrower while that Lender was a Defaulting Lender; and *provided*, *further*, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender.

*Section 1.17.Replacement of Lenders.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Notwithstanding anything to the contrary contained herein, in the event that (x) any Affected Person shall request reimbursement for amounts owing pursuant to <u>Section 2.09</u> or <u>16.03</u>, (y) a Lender is a Defaulting Lender or (z) any Lender does not give or approve any consent, waiver or amendment that requires the approval of all Lenders or all affected Lenders in accordance with the terms hereof and has been approved by the Required Lenders (any such Lender in <u>clauses (x)</u>, <u>(y)</u> and <u>(z)</u>, a *"Potential Terminated Lender"*), the Borrower, at its sole expense and effort, shall be permitted, upon no less than ten (10) days' written notice to the Administrative Agent and such Potential Terminated Lender, to require such Potential

750499896 22723957

<u>751700376 22723957</u>

------

Terminated Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, <u>Section 16.06</u>), all of its interests, rights (other than its existing rights to payments pursuant to <u>Sections 2.09</u> and <u>16.03</u>) and obligations under this Agreement and the related Facility Documents to an assignee permitted pursuant to <u>Section 16.06</u> (a *"Replacement Lender"*) that shall assume such obligations (which assignee may be another Lender, if such Lender accepts such assignment); *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;(i)such Potential Terminated Lender shall have received payment of an amount equal to the outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Facility Documents (including any amounts under <u>Section 2.10</u>) from the Replacement Lender (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&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)in the case of any such assignment resulting from a claim for compensation under <u>Section 2.09</u> or payments required to be made pursuant to <u>Section 16.03</u>, such assignment will result in a reduction in such compensation or payments thereafter;

&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)such assignment does not conflict with Applicable Law; 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;(iv)in the case of an assignment based on <u>clause (z)</u> above, the Replacement Lender shall have consented to the applicable amendment, waiver or consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each Potential Terminated Lender hereby agrees to take all actions reasonably necessary, at the sole expense of the Borrower, to permit a Replacement Lender to succeed to its rights and obligations hereunder. Upon the effectiveness of any such assignment to a Replacement Lender, (i) such Replacement Lender shall become a "Lender" hereunder for all purposes of this Agreement and the other Facility Documents, (ii) such Replacement Lender shall have a Commitment in the amount not less than the Potential Terminated Lender's Commitment assumed by it and (iii) the Commitment of the Potential Terminated Lender shall be terminated in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No Lender shall be required to make any assignment or delegation pursuant to <u>Section 2.17(a)</u> if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

*Section 1.18.Increase in Facility Amount.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Borrower may, at any time and from time to time prior to the Commitment Termination Date, increase the Facility Amount, either through an increase in the Commitment of a particular Lender or addition of a new Lender, by delivering a request substantially in the form attached hereto as <u>Exhibit F-1</u> (each, a *"Facility Amount Increase Request")* or in such other form acceptable to the Administrative Agent at least 30 days (or such lesser number of days as is acceptable to the Administrative Agent) before the desired effective date of such increase (the *"Facility Amount Increase"*) identifying an additional Lender that is a Permitted Assignee (or additional Commitments for existing Lender(s) which have consented to such increase), and the amount of its Commitment (or additional amount of its Commitment(s)); <u>provided</u>, <u>however</u>, that (i) any increase of the aggregate amount of the Facility Amount shall be in an amount not less than $10,000,000, (ii) no Default or Event of Default shall have occurred and be continuing at the time of the request or the effective date of the Facility Amount Increase, (iii) all representations and warranties contained in <u>Article IV</u> hereof (as the same may be amended from time to time) shall be true and correct in all material respects at the time of such

750499896 22723957

<u>751700376 22723957</u>

------

request and on the effective date of such Facility Amount Increase, (iv) the Administrative Agent shall have provided its written consent to such increase, (v) each existing Lender that has agreed to increase its Commitment shall deliver to the Borrower a Facility Amount Increase Agreement substantially in the form attached hereto as <u>Exhibit F-2</u> (each, a *"Facility Amount Increase Agreement"*), (vi) each new Lender shall satisfy the conditions set forth in <u>Section 2.18(b)</u>, and (vii) any increase of the Facility Amount to an amount in excess of $450,000,000 will require the approval of the Required Lenders. The effective date of the Facility Amount Increase shall be agreed upon by the Borrower and the Administrative Agent. Upon the effectiveness thereof, the new Lender(s) (or, if applicable, existing Lender(s)) shall make Advances in an amount sufficient such that after giving effect to its advance each Lender shall have outstanding its Percentage of Advances. It shall also be a condition to such effectiveness that the Borrower shall not have terminated any portion of the Facility Amount pursuant to <u>Section 2.06</u> hereof. The Borrower agrees to pay any reasonable and documented expenses of the Administrative Agent relating to any Facility Amount Increase. Notwithstanding anything herein to the contrary, no Lender shall have any obligation to increase its Commitment and no Lender's Commitment shall be increased without its consent thereto, and each Lender may in its sole and absolute discretion, unconditionally and without cause, decline to increase its Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In connection with any Facility Amount Increase other than in connection with a Facility Amount Increase Agreement, at the request of the Borrower, a Permitted Assignee may join this Agreement as a Lender and assume all rights and obligations of a Lender under this Agreement and the other Facility Documents, subject to the following conditions: (i) the Commitment of the new Lender shall be in addition to the Commitment of the existing Lenders in effect on the date of such new Lender's entry into this Agreement and the Facility Amount shall be increased in a corresponding amount; (ii) such new Lender shall deliver to the Borrower the applicable tax forms required by <u>Section 16.03(g)</u>; and (iii) the new Lender and the Borrower shall execute and deliver to the Administrative Agent a Lender Joinder Agreement substantially in the form of <u>Exhibit F-3</u> (each, a *"Lender Joinder Agreement"*).

**Article III**<br>**CONDITIONS PRECEDENT**

*Section 1.01.Conditions Precedent to Initial Advances*. The obligation of each Lender to make its initial Advance hereunder shall be subject to the conditions precedent that the Administrative Agent shall have received on or before the Closing Date the following, each in form and substance reasonably satisfactory to the Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)each of the Facility Documents (other than the Collateral Agent and Collateral Administrator Fee Letter, which shall be delivered directly to Citibank and Virtus Group, LP) duly executed and delivered by the parties thereto, which shall each be in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)true and complete copies of the Constituent Documents of the Borrower, the Collateral Manager and the Parent as in effect on the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)true and complete copies certified by a Responsible Officer of the Borrower of all Governmental Authorizations, Private Authorizations and Governmental Filings, if any, required in connection with the transactions contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)a certificate of a Responsible Officer of the Borrower and the Collateral Manager certifying (i) as to its Constituent Documents, (ii) as to its resolutions or other action of its board of directors or members or other governing body approving this Agreement and the other Facility Documents to which it is a party and the transactions contemplated hereby and thereby, (iii) that its representations and warranties set forth in the Facility Documents to which it is a party are

750499896 22723957

<u>751700376 22723957</u>

------

true and correct in all material respects as of the Closing Date (except to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), (iv) no Default or Event of Default has occurred and is continuing, and (v) as to the incumbency and specimen signature of each of its Responsible Officers authorized to execute the Facility Documents to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)[reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)[reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)financing statements (or the equivalent thereof in any applicable foreign jurisdiction, as applicable) in proper form for filing on the Closing Date, under the UCC with the Delaware Secretary of State, the Maryland Department of Assessments and Taxation and any other applicable filing office in any applicable jurisdiction that the Administrative Agent deems necessary or desirable in order to perfect the interests in the Collateral contemplated by this Agreement and the Purchase and Contribution Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)copies of proper financing statement amendments (or the equivalent thereof in any applicable foreign jurisdiction, as applicable), if any, necessary to release all security interests and other rights of any Person in the Collateral previously granted by the Borrower, the Parent or any transferor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)legal opinions (addressed to each of the Secured Parties) of Dechert LLP, counsel to the Borrower, the Parent and the Collateral Manager, Dentons US LLP, counsel to the Collateral Agent, the Document Custodian, the Custodian and the Collateral Administrator and Porter Hedges LLP, counsel to the Collateral Administrator, covering such matters as the Administrative Agent and its counsel shall reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)evidence reasonably satisfactory to it that all of the Covered Accounts shall have been established and the Account Control Agreement shall have been executed and delivered by the Borrower, the Collateral Agent and the Custodian, and shall be in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)evidence that (x) all fees and expenses due and owing to the Administrative Agent, each Lender, Citibank, in its respective capacities hereunder, and Virtus Group, LP on or prior to the Closing Date have been received or will be received contemporaneous with closing; (y) the reasonable and documented fees and expenses of Mayer Brown LLP, counsel to the Administrative Agent, Dentons US LLP, counsel to the Collateral Administrator and Citibank, in its respective capacities hereunder, and Porter Hedges LLP, counsel to the Collateral Administrator, in connection with the transactions contemplated hereby (to the extent invoiced prior to the Closing Date); and (z) all other reasonable and documented up-front expenses and fees (including legal fees of outside counsel and any fees required under the Collateral Agent and Collateral Administrator Fee Letter that are invoiced at least one Business Day prior to the Closing Date), shall have been paid by the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)delivery of such Collateral (including any promissory note, executed assignment agreements and word or pdf copies of the principal credit agreement for each initial Collateral Loan, to the extent received by the Borrower) in accordance with the provisions of <u>Article XIII</u> shall have been effected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)a certificate of a Responsible Officer of the Borrower, dated as of the Closing Date, certifying to the effect that, in the case of each item of Collateral pledged to the Collateral Agent, on the Closing Date and, in the case of <u>clauses (i)</u> through <u>(iii)</u> below, immediately prior to the delivery thereof on the Closing Date:

750499896 22723957

<u>751700376 22723957</u>

------

&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)the Borrower is the owner of such Collateral free and clear of any Liens except for (A) those which are being released on the Closing Date and (B) Permitted Liens;

&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)the Borrower has acquired its ownership in such Collateral in good faith without notice of any adverse claim, except as described in <u>clause (i)</u> above;

&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)the Borrower has not assigned, pledged or otherwise encumbered any interest in such Collateral (or, if any such interest has been assigned, pledged or otherwise encumbered, it has been released) other than Permitted Liens or interests granted pursuant to this Agreement;

&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)the Borrower has full right to grant a security interest in and assign and pledge such Collateral to the Collateral Agent; 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;(v)upon grant by the Borrower and the filing of the financing statements contemplated in clause (g) above, the Collateral Agent has a first priority perfected security interest in the Collateral, except Permitted Liens or as permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)all documentation and other information requested by any such Lender required by bank regulatory authorities under applicable "know your customer" and anti-money laundering rules and regulations, including the PATRIOT Act, and the Administrative Agent shall have received a fully executed Internal Revenue Service Form W-9 (or its equivalent) for the Borrower, the Collateral Manager and the Parent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)such other opinions, instruments, certificates and documents from the Borrower, the Collateral Manager and the Parent as the Agents or any Lender shall have reasonably requested.

*Section 1.02.Conditions Precedent to Each Borrowing*. The obligation of each Lender to make each Advance to be made by it (including the initial Advance and any Swingline Advance) on each Borrowing Date shall be subject to the fulfillment of the following conditions; *provided* that the conditions described in <u>clauses (c)</u> and <u>(d)</u> (other than a Default or Event of Default described in <u>Section 6.01(f)</u>) below need not be satisfied if the proceeds of the Borrowing are used to fund Revolving Collateral Loans or Delayed Drawdown Collateral Loans then owned by the Borrower or to fund the Revolving Reserve Account to the extent required under <u>Section 8.04</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Administrative Agent (and, with respect to any Swingline Advance, the Swingline Lender) shall have received a Notice of Borrowing with respect to such Advance (including the Borrowing Base Calculation Statement attached thereto, all duly completed) delivered in accordance with <u>Section 2.02</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)immediately after the making of such Advance on the applicable Borrowing Date, each Coverage Test shall be satisfied (or in the case of the Interest Coverage Ratio Test, was satisfied as of the most recent Monthly Reporting Date) (as demonstrated on the Borrowing Base Calculation Statement attached to such Notice of Borrowing);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)each of the representations and warranties of the Borrower, the Parent and the Collateral Manager contained in the Facility Documents shall be true and correct in all material respects as of such Borrowing Date (except to the extent such representations and warranties expressly relate to any earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date as if made on such date);

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)no Default, Event of Default, Potential Collateral Manager Termination Event or Collateral Manager Termination Event shall have occurred and be continuing at the time of the making of such Advance or shall result upon the making of such Advance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the Reinvestment Period shall not have terminated.

**Article IV**<br>**REPRESENTATIONS AND WARRANTIES**

*Section 1.01.Representations and Warranties of the Borrower*. The Borrower represents and warrants to each of the Secured Parties on and as of each Measurement Date (and, in respect of <u>clause (i)</u> below, each date such information is provided by or on behalf of it), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Due Organization*. The Borrower is a limited liability company duly organized and validly existing under the Laws of the State of Delaware, with full power and authority to own and operate its assets and properties, conduct the business in which it is now engaged and to execute and deliver and perform its obligations under this Agreement and the other Facility Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Due Qualification and Good Standing*. The Borrower is in good standing in the State of Delaware. The Borrower is duly qualified to do business and, to the extent applicable, is in good standing in each other jurisdiction in which the nature of its business, assets and properties, including the performance of its obligations under this Agreement, the other Facility Documents to which it is a party and its Constituent Documents, requires such qualification, except where the failure to be so qualified or in good standing could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Due Authorization*; *Execution and Delivery; Legal, Valid and Binding; Enforceability*. The execution and delivery by the Borrower of, and the performance of its obligations under the Facility Documents to which it is a party and the other instruments, certificates and agreements contemplated thereby are within its powers and have been duly authorized by all requisite action by it and have been duly executed and delivered by it and constitute its legal, valid and binding obligations enforceable against it in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting creditors' rights generally or general principles of equity, regardless of whether considered in a proceeding in equity or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Non-Contravention*. None of the execution and delivery by the Borrower of this Agreement or the other Facility Documents to which it is a party, the Borrowings or the pledge of the Collateral hereunder, the consummation of the transactions herein or therein contemplated, or compliance by it with the terms, conditions and provisions hereof or thereof, will (i) conflict with, or result in a breach or violation of, or constitute a default under its Constituent Documents, (ii) conflict with or contravene (A) any Applicable Law, (B) any indenture, agreement or other contractual restriction binding on or affecting it or any of its assets, including any Related Document, or (C) any order, writ, judgment, award, injunction or decree binding on or affecting it or any of its assets or properties or (iii) result in a breach or violation of, or constitute a default under, or permit the acceleration of any obligation or liability in, or but for any requirement of the giving of notice or the passage of time (or both) would constitute such a conflict with, breach or violation of, or default under, or permit any such acceleration in, any contractual obligation or any agreement or document to which it is a party or by which it or any of its assets are bound (or to which any such obligation, agreement or document relates), except in the case of <u>clauses (ii)</u> 

750499896 22723957

<u>751700376 22723957</u>

------

and <u>(iii)</u> above, where such conflicts, breaches, violations or defaults could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Governmental Authorizations; Private Authorizations; Governmental Filings*. The Borrower has obtained, maintained and kept in full force and effect all Governmental Authorizations and Private Authorizations which are necessary for it to properly carry out its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, and made all material Governmental Filings necessary for the execution and delivery by it of the Facility Documents to which it is a party, the Borrowings by the Borrower under this Agreement, the pledge of the Collateral by the Borrower under this Agreement and the performance by the Borrower of its obligations under this Agreement, the other Facility Documents, and no material Governmental Authorization, Private Authorization or Governmental Filing which has not been obtained or made, is required to be obtained or made by it in connection with the execution and delivery by it of any Facility Document to which it is a party, the Borrowings by the Borrower under this Agreement, the pledge of the Collateral by the Borrower under this Agreement or the performance of its obligations under this Agreement and the other Facility Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Compliance with Agreements, Laws, Etc*. The Borrower has duly observed and complied in all material respects with all Applicable Laws relating to the conduct of its business and its assets. The Borrower has preserved and kept in full force and effect its legal existence. The Borrower has preserved and kept in full force and effect its rights, privileges, qualifications and franchises, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Location*. The Borrower's office in which the Borrower maintains its limited liability company books and records is located at the addresses set forth on <u>Schedule 5</u>. The Borrower's registered office and jurisdiction of organization is the jurisdiction referred to in <u>Section 4.01(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Investment Company Act*. Assuming compliance by each of the Lenders and any participant with <u>Section 16.06</u>, neither the Borrower nor the pool of Collateral is required to register as an "investment company" under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Information and Reports*. Other than any of the following information containing information provided or prepared by an Obligor, each Notice of Borrowing, each Monthly Report, and all other written information, reports, certificates and statements (other than projections and forward-looking statements) furnished by or on behalf of the Borrower to any Secured Party for purposes of or in connection with this Agreement, the other Facility Documents or the transactions contemplated hereby or thereby are true, complete and correct in all material respects as of the date such information is stated or certified. All projections and forward-looking statements furnished by or on behalf of the Borrower were prepared reasonably and in good faith as of the date on which they were provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*ERISA*. The Borrower does not, and during the past five years has not had, any liability or obligation with respect to any Plan or Multiemployer Plan, and neither the Borrower nor any member of its ERISA Group does, or during the past five years has had, any liability or obligation with respect to any Plan or Multiemployer Plan that could reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*Taxes*. The Borrower has filed all U.S. federal income tax returns, information statements, reports and all other material tax returns which are required to be filed by it, if any, and has paid all U.S. federal income Taxes and all other material Taxes (including mortgage recording Taxes) shown to be due and payable on such returns, if any, or pursuant to any

750499896 22723957

<u>751700376 22723957</u>

------

assessment received by any such Person, other than any such Taxes that are being contested in good faith by appropriate proceedings and for which appropriate reserves in accordance with GAAP have been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)*Tax Status*. For U.S. Federal income tax purposes, the Borrower is treated as an entity that is disregarded as separate from its owner (as defined in Treasury Regulation Section 301.7701-2(a)). The entity from which the Borrower is disregarded as a separate entity is a U.S. Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)*Collections*. The Borrower (or the Collateral Manager on behalf of the Borrower) has directed any agent or administrative agent for any Collateral Loan (or, in the case of a participation interest, the participation seller) to remit all payments and collections with respect to such Collateral Loan and, if applicable, has directed the Obligor (or, in the case of a participation interest, the participation seller) with respect to such Collateral Loan to remit all such payments and collections with respect to such Collateral Loan directly to the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)*Plan Assets*. The assets of the Borrower are not treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101 and Section 3(42) of ERISA (together, the *"Plan Asset Rule"*) and the Collateral is not deemed to be "plan assets" for purposes of the Plan Asset Rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)*Solvency*. After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, the Borrower is and will be Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)*Representations Relating to the Collateral*. The Borrower hereby represents and warrants 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;(i)it owns and has legal and beneficial title to all Collateral Loans and other Collateral free and clear of any Lien, claim or encumbrance of any Person, other than Permitted Liens;

&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)other than Permitted Liens, the Borrower has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral. The Borrower has not authorized the filing of and is not aware of any financing statements or any equivalent filing in any applicable jurisdiction against the Borrower that include a description of collateral covering the Collateral other than any financing statement or any equivalent filing in any applicable jurisdiction relating to the security interest granted to the Collateral Agent hereunder or that has been terminated, and the Borrower is not aware of any judgment, PBGC liens or tax lien filings against the Borrower or any of its assets;

&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)the Collateral constitutes Money, Cash, accounts (as defined in Section 9-102(a)(2) of the UCC), Instruments, general intangibles (as defined in Section 9-102(a)(42) of the UCC), Uncertificated Securities, Certificated Securities or Security Entitlements to Financial Assets resulting from the crediting of Financial Assets to a "securities account" (as defined in Section 8-501(a) of the UCC);

&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)all Covered Accounts constitute "securities accounts" under Section 8-501(a) of the UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)this Agreement creates a valid, continuing and, upon Delivery of Collateral, filing of the financing statements referred to in <u>clause (viii)</u> below and execution of the Account Control Agreement, perfected security interest (as defined in Section 1-201(b)(35) of the UCC) in the Collateral in favor of the Collateral Agent, for

750499896 22723957

<u>751700376 22723957</u>

------

the benefit and security of the Secured Parties, which security interest is prior to all other Liens (other than Permitted Liens), and is enforceable as such against creditors of and purchasers from the Borrower, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting creditors' rights generally or general principles of equity, regardless of whether considered in a proceeding in equity or at 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;(vi)the Borrower has received all consents and approvals required by the terms of the Related Documents in respect of such Collateral to the pledge hereunder to the Collateral Agent of its interest and rights in such Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)with respect to the Collateral that constitutes Security Entitlements, all such Collateral has been and will have been credited to the applicable Covered Account; 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;(viii)with respect to the Collateral that constitutes accounts or general intangibles (as defined in Section 9-102(a)(42) of the UCC), the Borrower has caused or will have caused, on or prior to the Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in the Collateral granted to the Collateral Agent, for the benefit and security of the Secured Parties, hereunder (which the Borrower hereby agrees may be an "all assets" filing), which security interest may be perfected by the filing of a financing statement under Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)*Eligibility*. Each Collateral Loan included in a Monthly Report or a Borrowing Base Calculation Statement required to be delivered by the Borrower under this Agreement as an Eligible Collateral Loan was, in fact, an Eligible Collateral Loan at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)*Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions*. The Borrower and its directors, officers, managers and, to its knowledge, its agents, are in compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions. None of (a) the Borrower or its directors, officers or managers, or (b) to its knowledge, any of its agents that will act in any capacity in connection with or benefit from the credit facilities established hereby, is a Sanctioned Person. No Borrowing, use of proceeds thereof or other transactions hereunder will violate Anti-Corruption Laws, Anti-Money Laundering Laws or applicable Sanctions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)*Value Given.* The Borrower has given fair consideration and reasonably equivalent value to the Parent in exchange for the purchase of the Collateral Loans (or any number of them) from the Parent pursuant to the Purchase and Contribution Agreement. No such transfer has been made for or on account of an antecedent debt owed by the Borrower to the Parent and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)*Beneficial Ownership Certificate*. (a) As of the Closing Date, the Borrower has delivered to the Administrative Agent and each Lender a Beneficial Ownership Certificate and the information included in such Beneficial Ownership Certificate is true and correct in all respects and (b) as of the date delivered, the information included in each Beneficial Ownership Certificate delivered pursuant to <u>Section 5.02(u)</u> is true and correct in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)*Affected Financial Institutions*. Neither the Borrower nor any subsidiary is an Affected Financial Institution.

750499896 22723957

<u>751700376 22723957</u>

------

*Section 1.02.Representations and Warranties of the Collateral Manager*. The Collateral Manager represents and warrants to each of the Secured Parties on and as of each Measurement Date (and in respect of <u>clause (i)</u> below, each date such information is provided by or on behalf of it), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Due Organization*. The Collateral Manager is a corporation duly organized and validly existing under the Laws of the State of Maryland, with full power and authority to own and operate its assets and properties, conduct the business in which it is now engaged and to execute and deliver and perform its obligations under this Agreement and the other Facility Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Due Qualification and Good Standing*. The Collateral Manager is in good standing in the State of Maryland. The Collateral Manager is duly qualified to do business and, to the extent applicable, is in good standing in each other jurisdiction in which the nature of its business, assets and properties, including the performance of its obligations under this Agreement, the other Facility Documents to which it is a party and its Constituent Documents to which it is a party, requires such qualification, except where the failure to be so qualified or in good standing could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Due Authorization; Execution and Delivery; Legal, Valid and Binding; Enforceability*. The execution and delivery by the Collateral Manager of, and the performance of its obligations under the Facility Documents to which it is a party and the other instruments, certificates and agreements contemplated thereby are within its powers and have been duly authorized by all requisite action by it and have been duly executed and delivered by it and constitute its legal, valid and binding obligations enforceable against it in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting creditors' rights generally or general principles of equity, regardless of whether considered in a proceeding in equity or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Non-Contravention*. None of the execution and delivery by the Collateral Manager of this Agreement or the other Facility Documents to which it is a party, the consummation of the transactions herein or therein contemplated, or compliance by it with the terms, conditions and provisions hereof or thereof, will (i) conflict with, or result in a breach or violation of, or constitute a default under its Constituent Documents, (ii) conflict with or contravene (A) any Applicable Law, (B) any indenture, agreement or other contractual restriction binding on or affecting it or any of its assets, including any Related Document, or (C) any order, writ, judgment, award, injunction or decree binding on or affecting it or any of its assets or properties, or (iii) result in a breach or violation of, or constitute a default under, or permit the acceleration of any obligation or liability in, or but for any requirement of the giving of notice or the passage of time (or both) would constitute such a conflict with, breach or violation of, or default under, or permit any such acceleration of, any contractual obligation or any agreement or document to which it is a party or by which it or any of its assets are bound (or to which any such obligation, agreement or document relates), except in the case of <u>clauses (ii)</u> and <u>(iii)</u> above, where such conflicts, breaches, violations or defaults could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Governmental Authorizations; Private Authorizations; Governmental Filings*. The Collateral Manager has obtained, maintained and kept in full force and effect all Governmental Authorizations and Private Authorizations which are necessary for it to properly carry out its business, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect, and made all material Governmental Filings necessary for the execution and delivery by it of the Facility Documents to which it is a party, and the performance by the Collateral Manager of its obligations under this Agreement, the other Facility Documents, and no material Governmental Authorization, Private Authorization or Governmental Filing

750499896 22723957

<u>751700376 22723957</u>

------

which has not been obtained or made, is required to be obtained or made by it in connection with the execution and delivery by it of any Facility Document to which it is a party or the performance of its obligations under this Agreement and the other Facility Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Compliance with Agreements, Laws, Etc.* The Collateral Manager has duly observed and complied in all material respects with all Applicable Laws, including the Securities Act and the Investment Company Act, relating to the conduct of its business and its assets. The Collateral Manager has preserved and kept in full force and effect its legal existence. The Collateral Manager has preserved and kept in full force and effect its rights, privileges, qualifications and franchises, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Location of Records*. The Collateral Manager's office in which it maintains its corporate books and records is located at the addresses set forth on <u>Schedule 5</u>. The Collateral Manager's registered office and jurisdiction of organization is the jurisdiction referred to in <u>Section 4.02(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Investment Company Act*. The Collateral Manager is registered as an "investment company" under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Information and Reports*. Other than any of the following information containing information provided or prepared by an Obligor, each Notice of Borrowing, each Monthly Report, and all other written information, reports, certificates and statements (other than projections and forward-looking statements) furnished by the Collateral Manager to any Secured Party for purposes of or in connection with this Agreement, the other Facility Documents or the transactions contemplated hereby or thereby are true, complete and correct in all material respects as of the date such information is stated or certified. All projections and forward-looking statements furnished by the Collateral Manager were prepared reasonably and in good faith as of the date on which they were provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*ERISA*. Neither the Collateral Manager nor any member of its ERISA Group has, or during the past five years had, any liability or obligation with respect to any Plan or Multiemployer Plan that would result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*Taxes*. The Collateral Manager has filed all U.S. federal income tax returns, information statements, reports and all other material tax returns which are required to be filed by it, if any, and has paid all U.S. federal income Taxes and all other material Taxes (including mortgage recording Taxes) shown to be due and payable on such returns, if any, or pursuant to any assessment received by any such Person, other than any such Taxes that are being contested in good faith by appropriate proceedings and for which appropriate reserves in accordance with GAAP have been established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)*Eligibility*. Each Collateral Loan included in a Monthly Report or a Borrowing Base Calculation Statement required to be delivered by it under this Agreement as an Eligible Collateral Loan was, in fact, an Eligible Collateral Loan at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)*Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions*. The Collateral Manager and its subsidiaries and their respective directors, officers, managers and, to its knowledge, its agents, are in compliance with Anti-Corruption Laws, Anti-Money Laundering Laws and applicable Sanctions. None of (a) the Collateral Manager, its subsidiaries or their respective directors, officers or managers, or (b) to their respective knowledge, any of their agents that will act in any capacity in connection with or benefit from the credit facilities established hereby, is a Sanctioned Person.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)*BDC Status*. Main Street qualifies as an RIC and is an "investment company" that has elected to be regulated as a "business development company" as defined in Section 2(a)(48) of the Investment Company Act and is subject to regulation as such under the Investment Company Act including Section 18, as modified by Section 61, of the Investment Company Act. The business and other activities of Main Street, including but not limited to, the consummation of the transactions contemplated by the Facility Documents to which Main Street is a party do not result in any violations, with respect to Main Street, of the provisions of the Investment Company Act or any rules, regulations or orders issued by the SEC thereunder, in each case, that are applicable to Main Street.

**Article V**<br>**COVENANTS**

*Section 1.01.Affirmative Covenants of the Borrower*. The Borrower covenants and agrees that, until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Compliance with Agreements, Laws, Etc*. It shall (i) duly observe and comply in all material respects with all Applicable Laws relative to the conduct of its business or to its assets, (ii) preserve and keep in full force and effect its legal existence, (iii) preserve and keep in full force and effect its rights, privileges, qualifications and franchises, (iv) comply with the terms and conditions of its Constituent Documents and comply in all material respects with its obligations under each Related Document to which it is a party and (v) obtain, maintain and keep in full force and effect all Governmental Authorizations, Private Authorizations and Governmental Filings which are necessary or appropriate to properly carry out its business and the transactions contemplated to be performed by it under the Facility Documents, its Constituent Documents and the Related Documents to which it is a party, except, in the case of <u>clause (iii)</u> and <u>clause (v)</u>, where the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Enforcement*. It shall not take any action, and will use commercially reasonable efforts not to permit any action to be taken by others, that would release any Obligor from any of such Obligor's material covenants or obligations under any instrument or agreement included in the Collateral, except in the case of (A) repayment of Collateral Loans, (B) subject to the terms of this Agreement, (i) amendments to Related Documents that govern Defaulted Collateral Loans or Ineligible Collateral Loans, (ii) amendments to Collateral Loans in accordance with the Collateral Management Standard, and (iii) actions taken in connection with the work-out or restructuring of any Collateral Loan in accordance with the provisions hereof, and (C) other actions by the Collateral Manager to the extent not prohibited by this Agreement or as otherwise required hereby. It will perform, and use commercially reasonable efforts to cause the Collateral Manager to perform, all of their obligations and agreements contained in this Agreement or any other Facility Document to which such Person is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Further Assurances*. It shall promptly upon the reasonable request of any Agent or the Required Lenders (through the Administrative Agent), at the Borrower's expense, execute and deliver such further instruments and take such further action in order to maintain and protect the Collateral Agent's first-priority perfected security interest in the Collateral pledged by the Borrower for the benefit of the Secured Parties free and clear of any Liens (other than Permitted Liens). At the reasonable request of any Agent or the Required Lenders (through the Administrative Agent), the Borrower shall promptly take, at the Borrower's expense, such further action in order to establish and protect the rights, interests and remedies created or intended to be created under this Agreement in favor of the Secured Parties in the Collateral, including all actions which are necessary to (x) enable the Secured Parties to enforce their rights and remedies under this Agreement and the other Facility Documents, and (y) effectuate the

750499896 22723957

<u>751700376 22723957</u>

------

intent and purpose of, and to carry out the terms of, the Facility Documents. The Borrower will take such reasonable action from time to time as shall be necessary to ensure that all assets (including all Covered Accounts) of the Borrower constitute "Collateral" hereunder. Subject to the foregoing, the Borrower will, and, upon the reasonable request of any Agent shall, at the Borrower's expense, take such other action (including executing and delivering or authorizing for filing any required UCC financing statements) as shall be necessary to create and perfect a valid and enforceable first-priority security interest on all Collateral acquired by the Borrower as collateral security for the Obligations and will in connection therewith deliver such proof of corporate action, incumbency of officers, opinions of counsel and other documents as is consistent with those delivered by the Borrower pursuant to <u>Section 3.01</u> on the Closing Date or as any Agent or the Required Lenders (through the Administrative Agent) shall have reasonably requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Financial Statements; Other Information*. It shall provide to the Administrative Agent or cause to be provided to the Administrative Agent (with additional copies for each Lender):

&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)within 120 days after the end of each fiscal year of the Parent, each of its audited consolidated balance sheets and related consolidated statements of operations, consolidated statements of changes in net assets, consolidated statements of cash flows and consolidated schedule of investments, as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations of the Parent and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied; *provided*, that the financial statements required to be delivered pursuant to this clause (i) which are made available via EDGAR, or any successor system of the Securities Exchange Commission, in the Parent's annual report on Form 10-K, shall be deemed delivered to the Administrative Agent and the Lenders on the date such documents are made so available; *provided, further,* that either (A) such financial statements of the Parent required pursuant to this clause (i) would include a footnote showing the balance sheets and statement of operations of the Borrower or (B) separate audited balance sheets and related statements of operations, consolidated statements of changes in net assets, consolidated statements of cash flows, as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by independent public accountants of recognized national standing (without a "going concern" or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such financial statements present fairly in all material respects the financial condition and results of operations of the Borrower in accordance with GAAP consistently applied would be provided;

&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)within 60 days after the end of each of the first three fiscal quarters of each fiscal year of the Parent, its unaudited consolidated balance sheets and related consolidated statements of operations and consolidated statements of changes in net assets as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the consolidated balance sheets, as of the end of) the previous fiscal year, all certified by a Responsible Officer as presenting fairly in all material respects the financial condition and results of operations of the Parent and its consolidated subsidiaries on a consolidated basis in accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes;

750499896 22723957

<u>751700376 22723957</u>

------

*provided*, that the financial statements required to be delivered pursuant to this clause (ii) which are made available via EDGAR, or any successor system of the Securities Exchange Commission, in Parent's quarterly report on Form 10-Q, shall be deemed delivered to the Administrative Agent and the Lenders on the date such documents are made so available; *provided, further,* that either (A) such financial statements of the Parent required pursuant to this clause (ii) would include a footnote showing the balance sheets and statement of operations of the Borrower or (B) separate balance sheets and statements of operations of the Borrower as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the consolidated balance sheets, as of the end of) the previous fiscal year would be separately provided;

&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)within 60 days after the end of a fiscal quarter (other than a fiscal year end) in which a quarterly valuation statement for the Parent is to be delivered to the Parent investors, copies of such quarterly valuation statement and 120 days after the end of each fiscal year, copies of the quarterly valuation statements for the Parent; *provided* that in no case shall less than two separate quarterly valuation statements be delivered for any fiscal year (it being understood that (x) the schedule of investments embedded in any reports which are made available via EDGAR, or any successor system of the Securities Exchange Commission, in Parent's quarterly report on Form 10-Q or in Parent's annual report on Form 10-K delivered pursuant to clauses (i) and (ii) above shall be deemed to satisfy this clause (iii) and (y) the financial statements required to be delivered pursuant to this clause (iii) which are made available via EDGAR, or any successor system of the Securities Exchange Commission, in Parent's quarterly report on Form 10-Q or in Parent's annual report on Form 10-K, shall be deemed delivered to the Administrative Agent and the Lenders on the date such documents are made so available);

&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)within two Business Days after a Responsible Officer of the Collateral Manager or a Responsible Officer of the Borrower obtains actual knowledge of the occurrence and continuance of any (x) Default or (y) Event of Default, a certificate of a Responsible Officer of the Borrower setting forth the details thereof and the action which the Borrower is taking or proposes to take with respect thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)from time to time such additional information regarding the Borrower's financial position or business and the Collateral (including reasonably detailed calculations of each Coverage Test, the Maximum Advance Rate Default Test and each Collateral Quality Test) as the Administrative Agent or the Required Lenders (through the Administrative Agent) may request if reasonably available to 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;(vi)promptly after the incurrence of any obligation to a Plan or Multiemployer Plan or the occurrence of any ERISA Event, notice of the incurrence of such obligation or of such ERISA Event and copies of any communications with all Governmental Authorities or any Multiemployer Plan with respect to such ERISA Event; 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;(vii)promptly following any reasonable request by the Administrative Agent or any Lender, all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer", anti-money laundering and sanctions Laws, including the PATRIOT Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Access to Records and Documents*. It shall permit the Administrative Agent (or any Person designated by the Administrative Agent, subject to delivery of standard confidentiality agreements or an agreement by such Person to comply with the provisions of <u>Section 16.09</u>) to, upon reasonable advance notice and during normal business hours, visit and

750499896 22723957

<u>751700376 22723957</u>

------

inspect and make copies thereof at reasonable intervals (i) its books, records and accounts relating to its business, financial condition, operations, assets and its performance under the Facility Documents and the Related Documents and to discuss the foregoing with its and such Person's officers, partners, employees and accountants, and (ii) all of its Related Documents, in each case all as often as the Administrative Agent may reasonably request; *provided* that so long as no Event of Default has occurred and is continuing, each Person entitled to so visit and inspect the Borrower's records under this <u>clause (e)</u> may only exercise its rights under this <u>clause (e)</u> twice during any fiscal year of the Borrower (it being understood that the Borrower shall be responsible for all reasonable and documented costs and expenses for only one such visit per fiscal year). The Administrative Agent shall provide reasonable notice to the Lenders of any such visit or inspection shall provide each Lender the opportunity to accompany the Administrative Agent on any such visit or inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Use of Proceeds*. It shall use the proceeds of each Advance made hereunder solely:

&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)to fund or pay the purchase price of Collateral Loans or Eligible Investments acquired by the Borrower in accordance with the terms and conditions set forth herein (it being understood that the Borrower may request a Borrowing to (A) with respect to the initial Advance, make a distribution to the Parent and to pay fees and expenses in connection with this Agreement and the other Facility Documents and (B) fund the applicable Advance Rate of one or more Collateral Loans either on the date of acquisition or at a later time during the Reinvestment Period pursuant to Article II) or for general corporate purposes;

&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)to fund additional extensions of credit under Revolving Collateral Loans and Delayed Drawdown Collateral Loans purchased in accordance with the terms of this Agreement;

&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)to fund the Revolving Reserve Account pursuant to Section 8.04 or 9.01 hereof; 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;(iv)so long as no Default or Event of Default shall have occurred and be continuing, and provided that any amounts required to be funded or paid by the Borrower pursuant to clauses (i), (ii) and (iii) of this subsection (f) have been made, then to distribute funds to its equityholders.

Without limiting the foregoing, it shall use the proceeds of each Advance in a manner that does not, directly or indirectly, violate any provision of its Constituent Documents or any Applicable Law, including Regulation T, Regulation U and Regulation X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Information and Reports*. Each Notice of Borrowing, each Monthly Report and all other written information, reports, certificates and statements furnished by or on behalf of it to any Secured Party for purposes of or in connection with this Agreement, the other Facility Documents or the transactions contemplated hereby or thereby shall be true, complete and correct in all material respects as of the date such information is stated or certified; *provided* that solely with respect to information furnished by the Borrower which was provided to the Borrower from an Obligor or any other third party (or is derived therefrom) with respect to a Collateral Loan, such information shall only need to be true, complete and correct in all material respects to the actual knowledge of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Opinions as to Collateral*. On or before each five year anniversary of the Closing Date, at the request of the Administrative Agent, it shall furnish to the Agents an opinion of

750499896 22723957

<u>751700376 22723957</u>

------

counsel addressed to the Agents and the Borrower relating to the continued perfection of the security interest granted by the Borrower to the Collateral Agent hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*No Other Business*. The Borrower shall not engage in any business or activity other than borrowing Advances pursuant to this Agreement, funding, acquiring, owning, holding, administering, selling, enforcing, lending, exchanging, redeeming, pledging, contracting for the management of and otherwise dealing with Collateral Loans, Eligible Investments and the other Collateral in connection therewith and entering into and performing its obligations under the Facility Documents, any applicable Related Documents and any other agreements contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*Tax Matters.* The Borrower shall (and each Lender hereby agrees to) treat the Advances as debt for U.S. Federal income tax purposes and will take no contrary position, unless otherwise required pursuant to a closing agreement with the U.S. Internal Revenue Service or a non-appealable judgment of a court of competent jurisdiction. Notwithstanding any contrary agreement or understanding, the Collateral Manager, the Borrower, the Agents and the Lenders (and each of their respective employees, representatives or other agents) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to them relating to such tax treatment and tax structure. The foregoing provision shall apply from the beginning of discussions between the parties. For this purpose, the tax treatment of a transaction is the purported or claimed U.S. tax treatment of the transaction under applicable U.S. Federal, state or local Law, and the tax structure of a transaction is any fact that may be relevant to understanding the purported or claimed U.S. tax treatment of the transaction under applicable U.S. Federal, state or local Law. The Borrower shall at all times be treated as an entity that is disregarded as separate from its owner (as defined in Treasury Regulation Section 301.7701-2(a)) for U.S. federal income tax purposes and shall take all steps necessary to ensure that the entity from which it is disregarded as separate is a U.S. Person. The Borrower shall pay and discharge all Taxes, assessments, and governmental charges or levies imposed upon it, its income or profits, or any property belonging to it, before any such obligation becomes delinquent; *provided* that the Borrower shall not be required to pay any Tax, assessment, charge or levy, if any, so long as the amount, applicability or validity thereof shall currently be contested in good faith by adequate proceedings and adequate reserves therefor have been established in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*Collections*. The Borrower (or the Collateral Manager on behalf of the Borrower) shall direct any agent or administrative agent for any Collateral Loan (or, in the case of a participation interest, the participation seller) to remit all payments and collections with respect to such Collateral Loan and, if applicable, to direct the Obligor (or, in the case of a participation interest, the participation seller) with respect to such Collateral Loan to remit all such payments and collections with respect to such Collateral Loan directly to the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)*Priority of Payments.* The Borrower shall direct the Collateral Agent to apply all Interest Proceeds and Principal Proceeds solely in accordance with the Priority of Payments and the other provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)*Compliance with Legal Opinions*. The Borrower shall take all other actions necessary to maintain the accuracy of the factual assumptions set forth in the legal opinions of Dechert LLP, as special counsel to the Borrower, issued in connection with the Purchase and Contribution Agreement and relating to the issues of substantive consolidation and true sale of certain Collateral Loans.

*Section 1.02.Negative Covenants of the Borrower*. The Borrower covenants and agrees that until the Collection Date:

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Restrictive Agreements*. It shall not enter into or suffer to exist or permit to become effective any agreement that prohibits, limits or imposes any condition upon its ability to create, incur, assume or suffer to exist any Lien (other than Permitted Liens) upon any of its property or revenues constituting Collateral, whether now owned or hereafter acquired, to secure its obligations under the Facility Documents other than this Agreement and the other Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Liquidation; Merger; Sale of Collateral*. It shall not consummate any plan of liquidation, dissolution, partial liquidation, merger or consolidation (or suffer any liquidation, dissolution or partial liquidation) nor sell, transfer, exchange or otherwise dispose of any of its assets, or enter into an agreement or commitment to do so or enter into or engage in any business with respect to any part of its assets, except as expressly permitted by this Agreement and the other Facility Documents (including in connection with the repayment in full of the Obligations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Amendments to Constituent Documents, etc*. Without the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) (i) it shall not amend, modify or take any action inconsistent in any material respect with its Constituent Documents and (ii) it will not amend, modify or waive any term or provision in any Facility Document (other than in accordance with its terms, including any provision thereof requiring the consent of the Administrative Agent or all or a specified percentage of the Lenders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*ERISA*. Neither it nor any member of its ERISA Group shall establish, contribute to, or have any liability to any Plan or Multiemployer Plan. It shall not take any action, or omit to take any action, that results in its underlying assets to constitute "plan assets" for purposes of the Plan Asset Rule or the Collateral being deemed to be "plan assets" for purposes of the Plan Asset Rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Liens*. It shall not create, assume or suffer to exist any Lien on any of its assets now owned or hereafter acquired by it at any time, except for Permitted Liens or as otherwise expressly permitted by this Agreement and the other Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Margin Requirements*. It shall not (i) extend credit to others for the purpose of buying or carrying any Margin Stock in such a manner as to violate Regulation T or Regulation U or (ii) use all or any part of the proceeds of any Advance, whether directly or indirectly, and whether immediately, incidentally or ultimately, for any purpose that violates the provisions of the Regulations of the Board of Governors, including, to the extent applicable, Regulation U and Regulation X.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Restricted Payments*. It shall not make, directly or indirectly, any Restricted Payment (whether in the form of cash or other assets) or incur any obligation (contingent or otherwise) to do so; *provided, however*, that the Borrower shall be permitted to make Restricted Payments from (i) funds distributed to it pursuant to the Priority of Payments or (ii) funds from an Advance pursuant to the use of proceeds in <u>Section 5.01(f)</u> hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Changes to Filing Information*. It shall not change its name, its chief place of business, its chief executive office, the office in which the Borrower maintains its limited liability company books and records or its jurisdiction of organization from that referred to in <u>Section 4.01(a)</u> or <u>Schedule 5</u>, as applicable, unless it gives ten days' prior written notice to the Agents and takes all actions that the Administrative Agent or the Required Lenders (through the Administrative Agent) reasonably request and determine to be necessary to protect and perfect the Collateral Agent's perfected security interest in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Transactions with Affiliates*. It shall not sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or

750499896 22723957

<u>751700376 22723957</u>

------

otherwise engage in any other transactions with, any of its Affiliates (including sales of Defaulted Collateral Loans and other Collateral Loans), except as permitted or required under the Facility Documents, unless such transaction is upon terms no less favorable to the Borrower than it would obtain in a comparable arm's length transaction with a Person that is not an Affiliate (it being agreed that any purchase or sale at par shall be deemed to comply with this provision). For the avoidance of doubt, (i) nothing in this <u>clause (i)</u> shall prohibit the Borrower from transferring or distributing the Collateral Loans to the Parent or an Affiliate, as applicable, in accordance with <u>Article X</u> and (ii) the Borrower may make dividends or distributions to the Parent from amounts released to the Borrower pursuant to the Priority of Payments at any time in accordance with its Constituent Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*Investment Company Restriction*. It shall not become required to register as an "investment company" under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*Anti-Corruption Laws, Anti-Money Laundering Laws and Sanctions*. It will not request any Borrowing, and shall not use the proceeds of any Borrowing (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 any Anti-Corruption Laws or Anti-Money Laundering Laws, (ii) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person or in any Sanctioned Country or (iii) in any manner that would result in the violation of any Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)*No Claims Against Advances*. Subject to Applicable Law, it shall not claim any credit on, make any deduction from, or dispute the enforceability of payment of the principal or interest payable (or any other amount) in respect of the Advances or assert any claim against any present or future Lender, by reason of the payment of any taxes levied or assessed upon any part of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)*Indebtedness; Guarantees; Securities; Other Assets*. It shall not incur or assume or guarantee any indebtedness, obligations (including contingent obligations) or other liabilities, or issue any additional securities, whether debt or equity, in each case other than (i) pursuant to or as expressly permitted by this Agreement and the other Facility Documents, (ii) obligations under its Constituent Documents or (iii) pursuant to customary indemnification, expense reimbursement and similar provisions under the Related Documents. The Borrower shall not acquire any Collateral Loans or other property other than as expressly permitted under the Facility Documents; it being understood and agreed that the Borrower shall be permitted to acquire Collateral Loans from its Affiliates and from unaffiliated third parties pursuant to <u>Article X</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)*Validity of this Agreement*. It shall not (i) take any action or omit to take any action, the result of which would permit the validity or effectiveness of any Facility Document or any grant of Collateral hereunder to be impaired, or permit the Lien of this Agreement to be amended, hypothecated, subordinated, terminated or discharged, or take any action or omit to take any action, the result of which would permit any Person to be released from any covenant or obligation with respect to this Agreement (except in accordance with its terms) and (ii) except as permitted by any Facility Document, take any action that would permit the Lien of this Agreement not to constitute a valid first priority perfected security interest in the Collateral (subject to Permitted Liens).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)*Priority of Payments.* It shall not pay any distributions from amounts on deposit in the Collection Account other than in accordance with the Priority of Payments (it being understood that any amounts paid to the Borrower pursuant to the Priority of Payments may be distributed to the Parent).

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)*Subsidiaries*. It shall not have or permit the formation of any subsidiaries, except in connection with the receipt of equity securities pursuant to an exercise of remedies with respect to a Collateral Loan or any work-out or restructuring of a Collateral Loan or to hold foreclosed property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)*Name*. It shall not conduct business under any name other than its own.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)*Employees*. It shall not have any employees (other than officers and directors to the extent they are employees).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)*Non-Petition*. The Borrower shall not be party to any agreements under which it has any material obligations or liability (direct or contingent) without using commercially reasonable efforts to include customary "non-petition" and "limited recourse" provisions therein (and shall not amend or eliminate such provisions in any agreement to which it is party), except for loan agreements, related loan documents, bond indentures and related bond documents, any agreements related to the purchase and sale of any Collateral Loans which contain customary (as determined by the Collateral Manager) purchase or sale terms or which are documented using customary (as determined by the Collateral Manager) loan trading documentation, in connection with the Collateral Loans and any agreement that does not impose a material obligation on the Borrower and that is of a type that customarily does not include "non-petition" or "limited recourse" provisions (including customary service contracts and engagement letters entered into with third party service providers (including independent accountants and providers of independent managers)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)*Certificated Securities*. The Borrower shall not acquire or hold any Certificated Securities in bearer form in a manner that does not satisfy the requirements of United States Treasury Regulations section 1.165-12(c) (as determined by the Collateral Manager).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)*Beneficial Ownership Certificate*. Promptly following any change in the information included in a Beneficial Ownership Certificate that would result in a change to the list of beneficial owners identified in such Beneficial Ownership Certificate, or a change in the address of any beneficial owners, the Borrower shall (x) notify the Administrative Agent and the Lenders and (y) execute and deliver to the Administrative Agent and each Lender an updated Beneficial Ownership Certificate.

*Section 1.03.Affirmative Covenants of the Collateral Manager*. The Collateral Manager covenants and agrees that until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Compliance with Agreements, Laws, Etc*. It shall (i) duly observe and comply in all material respects with all Applicable Laws relative to the conduct of its business or to its assets, (ii) preserve and keep in full force and effect its legal existence, (iii) preserve and keep in full force and effect its rights, privileges, qualifications and franchises, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect, (iv) comply with the terms and conditions of each Constituent Document and each Related Document in all material respects to which it is a party, and (v) obtain, maintain and keep in full force and effect all Governmental Authorizations, Private Authorizations and Governmental Filings which are necessary or appropriate to properly carry out its business and the transactions contemplated to be performed by it under the Facility Documents, the Constituent Documents and the Related Documents to which it is a party, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Enforcement*. It shall not take any action, and will use commercially reasonable efforts not to permit any action to be taken by others within its control, that would release any Obligor from any of such Obligor's material covenants or obligations under any instrument or

750499896 22723957

<u>751700376 22723957</u>

------

agreement included in the Collateral, except in the case of (A) repayment of Collateral Loans, (B) subject to the terms of this Agreement, (1) amendments to Related Documents that govern Defaulted Collateral Loans or Ineligible Collateral Loans, (2) amendments to Collateral Loans in accordance with the Collateral Management Standard, and (3) actions taken in connection with the work-out or restructuring of any Collateral Loan in accordance with the provisions hereof, and (C) other actions by the Collateral Manager to the extent not prohibited by this Agreement or as otherwise required hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Further Assurances*. It shall promptly at the Borrower's expense, execute and deliver such further instruments and take such further action in order to maintain and protect the Collateral Agent's first-priority perfected security interest in the Collateral pledged by the Borrower for the benefit of the Secured Parties free and clear of any Liens (subject to Permitted Liens). The Collateral Manager shall promptly take, at the Borrower's expense, such further action in order to establish and protect the rights, interests and remedies created or intended to be created under this Agreement in favor of the Secured Parties in the Collateral, including all actions which are necessary to (x) enable the Secured Parties to enforce their rights and remedies under this Agreement and the other Facility Documents, and (y) effectuate the intent and purpose of, and to carry out the terms of, the Facility Documents. In addition, the Collateral Manager will take such reasonable action from time to time as shall be necessary to ensure that all assets (including all Covered Accounts) of the Borrower constitute *"Collateral"* hereunder. Subject to the foregoing, the Collateral Manager will at the Borrower's expense, take such other action (including executing and delivering or authorizing for filing any required UCC financing statements) as shall be necessary to create and perfect a valid and enforceable first-priority security interest on all Collateral acquired by the Borrower as collateral security for the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*Access to Records and Documents*. It shall permit the Administrative Agent (or any Person designated by the Administrative Agent) to, upon reasonable advance notice and during normal business hours, visit and inspect and make copies thereof at reasonable intervals (i) its books, records and accounts relating to its business, financial condition, operations, assets and its performance under the Facility Documents and the Related Documents and to discuss the foregoing with its and such Person's officers, partners, employees and accountants, and (ii) all of its Related Documents, in each case all as often as the Administrative Agent may reasonably request; *provided* that so long as no Event of Default has occurred, each Person entitled to so visit and inspect the Collateral Manager's records under this <u>paragraph (d)</u> may only exercise its rights under this <u>paragraph (d)</u> twice during any fiscal year of the Collateral Manager (it being understood that the Borrower shall be responsible for all reasonable and documented costs and expenses for only one such visit per fiscal year). The Administrative Agent shall provide reasonable notice to the Lenders of any such visit or inspection shall provide each Lender the opportunity to accompany the Administrative Agent on any such visit or inspection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*Other Information.* The Collateral Manager shall provide to the Agents or cause to be provided to the Agents (with additional copies for each Lender):

&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)within two Business Days after a Responsible Officer of the Collateral Manager obtains actual knowledge of the occurrence and continuance of any (A) Default, (B) Event of Default, (C) Potential Collateral Manager Termination Event, (D) Collateral Manager Termination Event or (E) any material breach by the Borrower or the Parent of any representations, warranties, agreements or covenants hereunder or under the Purchase and Contribution Agreement, a certificate of a Responsible Officer setting forth the details thereof and the action which the Collateral Manager is taking or proposes to take with respect thereto;

750499896 22723957

<u>751700376 22723957</u>

------

&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)from time to time such additional information regarding the Collateral (including reasonably detailed calculations of each Coverage Test, the Collateral Quality Test and the Maximum Advance Rate Default Test) as the Administrative Agent or the Required Lenders (through the Administrative Agent) may reasonably request if reasonably available without undue burden or expense and able to be disclosed by the Collateral Manager;

&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)a Borrowing Base Calculation Statement on (A) each date on which the Collateral Manager sells or substitutes (or commits to sell or substitute, as the case may be) any Collateral Loan, (B) the date on which the Collateral Manager obtains knowledge of any Material Modification to a Collateral Loan or that a Collateral Loan has become a Defaulted Collateral Loan to the extent that the Borrowing Base has changed as a result of such Material Modification or as a result of such Collateral Loan becoming a Defaulted Collateral Loan and (C) each other date reasonably requested by the Administrative Agent upon at least two (2) Business Days' notice to the Collateral Manager; 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;(iv)promptly following any reasonable request by the Administrative Agent or any Lender, all documentation and other information that the Administrative Agent or such Lender requests in order to comply with its ongoing obligations under applicable "know your customer", anti-money laundering and sanctions Laws, including the PATRIOT Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Information and Reports.* Each Notice of Borrowing, each Monthly Report and all other written information, reports, certificates and statements furnished by or on behalf of the Collateral Manager to any other Secured Party for purposes of or in connection with this Agreement, the other Facility Documents or the transactions contemplated hereby or thereby shall be true, complete and correct in all material respects as of the date such information is stated or certified; *provided* that solely with respect to information furnished by the Collateral Manager which was provided to the Collateral Manager from an Obligor or any other third party (or is derived therefrom) with respect to a Collateral Loan, such information shall only need to be true, complete and correct in all material respects to the actual knowledge of the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*Collections.* The Collateral Manager shall direct any agent or administrative agent for any Collateral Loan (or, in the case of a participation interest, the participation seller) to remit all payments and collections with respect to such Collateral Loan and, if applicable, to direct the Obligor (or, in the case of a participation interest, the participation seller) with respect to such Collateral Loan to remit all such payments and collections with respect to such Collateral Loan directly to the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*Priority of Payments.* The Collateral Manager shall instruct the Collateral Agent to apply all Interest Proceeds and Principal Proceeds solely in accordance with the Priority of Payments and the other provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*Taxable Mortgage Pool.* The Collateral Manager shall not permit the sum of the outstanding principal balances of all Collateral Loans owned by the Borrower and that are principally secured by an interest in real property (within the meaning of Treasury Regulation Section 301.7701(i)-1(d)(3)) to exceed 40% of the Principal Balance of all Collateral Loans owned by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*Maintenance of RIC Status and Business Development Company.* Main Street shall maintain its status as an RIC under the Code and as a "business development company" under the Investment Company Act.

750499896 22723957

<u>751700376 22723957</u>

------

*Section 1.04.Negative Covenants of the Collateral Manager*. The Collateral Manager covenants and agrees that until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Restrictive Agreements*. It shall not enter into or suffer to exist or permit to become effective any agreement that prohibits, limits or imposes any condition upon its ability to perform its obligations under the Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Validity of this Agreement*. It shall not (i) take any action or omit to take any action, the result of which would permit the validity or effectiveness of any Facility Document or any grant of Collateral hereunder to be impaired, or permit the Lien of this Agreement to be amended, hypothecated, subordinated, terminated or discharged, or take any action or omit to take any action, the result of which would permit any Person to be released from any covenant or obligation with respect to this Agreement (except in accordance with its terms) and (ii) except as permitted by any Facility Document, take any action that would permit the Lien of this Agreement not to constitute a valid first priority perfected security interest in the Collateral (subject to Permitted Liens).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Liquidation; Merger; Disposition of Assets.* It shall not consummate any plan of liquidation, dissolution, partial liquidation, merger or consolidation (or suffer any liquidation, dissolution or partial liquidation) nor sell, transfer, exchange or otherwise dispose of all or substantially all of its assets unless the Collateral Manager or an Affiliate thereof is the surviving Person and no Collateral Manager Termination Event results therefrom. The Borrower shall not enter into any plan of division or other statutory division under Delaware law (or any comparable event under a different jurisdiction's laws) without the prior written consent of the Administrative Agent.

*Section 1.05.Certain Undertakings Relating to Separateness*. (a) Without limiting any, and subject to all, other covenants of the Borrower and the Collateral Manager contained in this Agreement, the Borrower (and the Collateral Manager in acting on behalf or for the benefit of the Borrower) shall conduct its business and operations separate and apart from that of any other Person (including the Parent and its Affiliates) and in furtherance of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Borrower shall maintain its accounts, financial statements, books, accounting and other records, and other documents separate from those of any other Person, *provided* that the Borrower may be consolidated into the Parent solely for tax and accounting purposes.

&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)The Borrower shall not commingle or pool any of its funds or assets with those of any Affiliate or any other Person, and it shall hold all of its assets in its own name, except as otherwise permitted or required under the Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)The Borrower shall conduct its own business in its own name and, for all purposes, shall not operate, or purport to operate, collectively as a single or consolidated business entity with respect to any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The Borrower shall pay its own debts, liabilities and expenses (including overhead expenses, if any) only out of its own assets as the same shall become due; provided, however, in its capacity as Collateral Manager, Main Street may from time to time advance expenses of the Borrower for which Main Street is later reimbursed pursuant to the Priority of 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;(5)The Borrower has observed, and shall observe all (A) limited liability company formalities and (B) other organizational formalities, in each case to the extent necessary or advisable to preserve its separate existence, and shall preserve its existence,

750499896 22723957

<u>751700376 22723957</u>

------

and it shall not, nor shall it permit any Affiliate or any other Person to, amend, modify or otherwise change its limited liability company agreement in a manner that would adversely affect the existence of the Borrower as a bankruptcy-remote special purpose entity. The Borrower shall have at least one Independent Manager at all times (subject to the time periods for replacement of Independent Managers that have resigned or have been removed set forth in the Borrower's Constituent Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)The Borrower shall not (A) guarantee, become obligated for, or hold itself or its credit out to be responsible for or available to satisfy, the debts or obligations of any other Person or (B) control the decisions or actions respecting the daily business or affairs of any other Person except as permitted by or pursuant to the Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)The Borrower shall, at all times, hold itself out to the public as a legal entity separate and distinct from any other Person; *provided* that the assets of the Borrower may be consolidated for accounting purposes and included in consolidated financial statements of the Parent as required by GAAP or 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;(8)The Borrower shall not identify itself as a division of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)The Borrower shall maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual assets from those of any Affiliate or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)The Borrower shall not use its separate existence to perpetrate a fraud in violation of 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;(11)The Borrower shall not, in connection with the Facility Documents, act with an intent to hinder, delay or defraud any of its creditors in violation of 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;(12)Any transaction between the Borrower and its Affiliates shall be on arm's length terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)Except as permitted by or pursuant to the Facility Documents, the Borrower shall not grant a security interest or otherwise pledge its assets for the benefit of any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)The Borrower shall not acquire any securities or debt instruments of the Parent, any Affiliates of the foregoing or any other Person (except for equity interests in Obligors in connection with the exercise of any remedies with respect to a Collateral Loan or any exchange offer, work-out or restructuring of a Collateral Loan subject to the provisions of <u>Section 5.02(p)</u> in the case of any subsidiary formed in connection therewith).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)The Borrower shall not make loans or advances to any Person, except for the Collateral Loans and as permitted by or pursuant to the Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)The Borrower shall make no transfer of its Collateral Loans except as permitted by or pursuant to the Facility Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)The Borrower shall file its own tax returns separate from those of any other Person, except to the extent that the Borrower is not required to file tax returns under Applicable Law or is not permitted to file its own tax returns separate from those of any other Person.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)The Borrower shall not acquire obligations or securities of its members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)The Borrower shall, to the extent used in its business, use separate stationery, invoices and checks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)The Borrower shall correct any known misunderstanding regarding its separate identity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21)The Borrower shall maintain adequate capital in light of its contemplated business operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)The Borrower shall at all times be organized as a single-purpose entity with Constituent Documents substantially similar to those in effect on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23)The Borrower shall at all times conduct its business so that any assumptions made with respect to the Borrower in any "substantive non-consolidation" opinion delivered in connection with the Facility Documents will continue to be true and correct in all respects.

**Article VI**<br>**EVENTS OF DEFAULT**

*Section 1.01.Events of Default*. *"Event of Default"*, wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any Law of any Governmental Authority):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)(i) a default in the payment, when due and payable, of (i) any interest, Commitment Fee or principal in respect of the Advances and (other than a default on the Final Maturity Date) such default has not been cured within two (2) Business Days after the due date of such payment, or (ii) any other payment required to be made pursuant to any Facility Document and such default has not been cured within three (3) Business Days after the date of such payment; *provided* that, in the case of a default resulting from a failure to disburse due to an administrative error or omission by the Collateral Agent or the Administrative Agent, such default will not be an Event of Default unless such failure continues for five (5) Business Days after a Responsible Officer of the Collateral Agent or the Administrative Agent receives written notice or has actual knowledge of such administrative error or omission (irrespective of whether the cause of such administrative error or omission has been determined);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the failure to reduce the Advances to $0 on the Final Maturity Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)the Borrower or the pool of Collateral becomes an investment company required to be registered under the Investment Company Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)except as otherwise provided in this <u>Section 6.01</u>, a default in any material respect in the performance, or breach in any material respect, of any covenant or agreement of the Borrower or the Parent under this Agreement or the other Facility Documents to which it is a party (it being understood, without limiting the generality of the foregoing, that any failure to meet any Concentration Limitation, Collateral Quality Test, Coverage Test or the Maximum Advance Rate Default Test is not an Event of Default under this <u>clause (d)</u>), or the failure of any representation or warranty of the Borrower or the Parent made in this Agreement or in any other Facility Document to which it is a party to be correct, in each case, in all material respects when the same shall have been made, and the continuation of such default, breach or failure for a

750499896 22723957

<u>751700376 22723957</u>

------

period of thirty (30) days (*provided* that breaches of <u>Sections 5.01(a)(ii)</u>, <u>5.01(d)</u>, <u>5.01(e)</u>, <u>5.01(f)</u> and <u>5.02</u> shall not have any cure period) after the earlier of (x) written notice to the Borrower and the Collateral Manager (which may be by e-mail) by any Agent, and (y) a Responsible Officer of the Borrower, the Parent or the Collateral Manager has acquired actual knowledge thereof (for the avoidance of doubt, to the extent the Parent purchases or substitutes (in accordance with the provisions of the Purchase and Contribution Agreement) an Eligible Collateral Loan for a Collateral Loan for which the representation in <u>Section 4.01(q)</u> was breached, such breach shall be deemed cured hereunder);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the rendering of one or more final judgments, decrees or orders by a court or arbitrator of competent jurisdiction for the payment of money in excess individually or in the aggregate of $20,000,000 against the Parent, or $500,000 against the Borrower (in each case net of amounts covered by insurance), and the aforementioned Persons shall not have either (x) discharged or provided for the discharge of any such judgment, decree or order in accordance with its terms or (y) perfected a timely appeal of such judgment, decree or order and caused the execution of same to be stayed during the pendency of the appeal, in each case, within sixty (60) days from the date of entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)an Insolvency Event relating to the Borrower or the Parent occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)any Collateral Manager Termination Event occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)(1) any material provision of a Facility Document shall (except in accordance with its terms) terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of the Borrower or the Parent, (2) the Borrower or the Parent shall, directly or indirectly, contest in any manner the effectiveness, validity, binding nature or enforceability of any Facility Document or any Lien purported to be created thereunder, or (3) any Lien securing any obligation under any Facility Document shall, in whole or in part, cease to be a first priority perfected security interest of the Collateral Agent except Permitted Liens and as otherwise expressly permitted in accordance with the applicable Facility Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)the occurrence of a Change of Control described in clause (1) of the definition thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)the Borrower ceases to have a valid ownership interest in all of the Collateral (subject to Permitted Liens);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)the Borrower shall assign or attempt to assign any of its rights, obligations, or duties under the Facility Documents without the prior written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)on any Monthly Reporting Date, the Interest Coverage Ratio Test is not satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)the Maximum Advance Rate Default Test shall not be satisfied and such failure shall continue for two (2) Business Days after the earlier of (x) written notice to the Borrower (which may be by e-mail) by the Administrative Agent and (y) a Responsible Officer of the Borrower has acquired actual knowledge thereof; *provided* that if the Collateral Manager (i) furnishes written evidence to the Administrative Agent within such two (2) Business Day period of a cure plan acceptable to the Administrative Agent, in its sole discretion, then the grace period hereunder shall be extended to twelve (12) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)the Borrower fails to have at least one Independent Manager; *provided* that the resignation of an Independent Manager or the removal of an Independent Manager for "cause" shall not affect this <u>clause (n)</u> unless the Borrower fails to appoint a new Independent Manager within ten (10) Business Days of the effective date of such removal or resignation;

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)any Monthly Report shall fail to be delivered when due and such failure shall continue for two (2) Business Days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) (i) the Internal Revenue Service shall file notice of a Lien pursuant to Section 6323 of the Code with regard to any asset of the Borrower and such Lien shall not have been released within five (5) Business Days or (ii) the PBGC shall file notice of a Lien pursuant to Section 4068 of ERISA or Section 303(k) of ERISA with regard to any asset of the Borrower and such Lien shall not have been released within five (5) Business Days, unless, in each case, a reserve has been established therefor in accordance with GAAP and such action is being diligently contested in good faith by appropriate proceedings.

Upon a Responsible Officer of the Borrower or Collateral Manager obtaining knowledge of the occurrence of an Event of Default, each of the Borrower and the Collateral Manager shall promptly (and in any event within two (2) Business Days) notify each other and the Agents, specifying each specific Event(s) of Default that has occurred as well as all other Events of Default that are then known to be continuing. Upon the occurrence of an Event of Default known to a Responsible Officer of the Collateral Agent or the Administrative Agent, the Collateral Agent or the Administrative Agent shall promptly notify the other Agent (and the Administrative Agent will notify the Lenders promptly) of such Event of Default in writing.

Upon the occurrence and during the continuance of any Event of Default, in addition to all rights and remedies specified in this Agreement and the other Facility Documents, including <u>Article VII</u>, and the rights and remedies of a secured party under Applicable Law, including the UCC (which rights shall be cumulative), the Administrative Agent may, in its sole discretion, and shall, at the request of the Majority Lenders, by notice to the Borrower (with a copy to the Collateral Agent and the Collateral Administrator), do any one or more of the following: (1) declare the Commitments to be terminated, whereupon the Commitments shall be terminated, and/or (2) declare the principal of and the accrued Interest on the Advances and all other Obligations whatsoever payable by the Borrower hereunder to be forthwith due and payable, whereupon such amounts shall be immediately due and payable without presentment, demand, protest or other formalities of any kind, all of which are hereby waived by the Borrower; *provided* that, upon the occurrence of any Event of Default described in <u>clause (f)</u> of <u>Section 6.01</u>, the Commitments shall automatically terminate and the Advances and all such other amounts shall automatically become due and payable, without any further action by any Person.

In addition, upon the occurrence and during the continuation of an Event of Default (and with respect to the remedy provided in <u>clause (w)</u> below, upon the occurrence and during the continuation of an Event of Default described in <u>clause (g)</u> above), following written notice by the Administrative Agent (provided in its sole discretion or at the direction of the Majority Lenders) to the Collateral Manager of the exercise of control rights with respect to the Collateral, the Administrative Agent may, in its sole discretion, and shall, at the request of the Majority Lenders, exercise such rights, including: (v) the exercise of the Collateral Manager's rights and obligations under the Facility Documents, including its unilateral power to (A) consent to modifications to Collateral Loans, (B) take any discretionary action with respect to Collateral Loans and (C) direct the acquisition, sales and other dispositions of Collateral Loans; (w) subject to delivery of a Collateral Manager Termination Notice and the occurrence or declaration of a Collateral Manager Termination Event, remove the Collateral Manager and transfer the Collateral Manager's rights and obligations under the Facility Documents to a Successor Collateral Manager (provided that the Collateral Manager shall have the option to repurchase the entire Collateral portfolio so long as (1) the Collateral Manager provides notice to the Administrative Agent of its intent to acquire and/or refinance the entire Collateral portfolio promptly following receipt of notice of the Administrative Agent's intent to transfer management of the Collateral Manager's rights and obligations under the Facility Documents to a Successor Collateral Manager, (2) the Proceeds of such acquisition and/or refinancing are sufficient to

750499896 22723957

<u>751700376 22723957</u>

------

extinguish all Obligations under the Facility Documents (other than unasserted contingent obligations) and (3) such acquisition and/or refinancing is completed by 4:00 p.m. on the tenth (10<sup>th</sup>) Business Day following receipt of the Administrative Agent's notice of intent to transfer management of the Collateral Manager's rights and obligations under the Facility Documents to a Successor Collateral Manager); (x) if the Collateral Manager is not terminated or otherwise replaced, to require the Collateral Manager to obtain the consent of the Administrative Agent before agreeing to any modification of any Collateral Loan, taking any discretionary action with respect to any Collateral Loan or causing the Borrower to sell or otherwise dispose of any Collateral Loan; (y) if the Collateral Manager is not terminated or otherwise replaced, to require the Collateral Manager to cause the Borrower to sell or otherwise dispose of any Collateral Loan as directed by the Administrative Agent pursuant to <u>Section 7.03</u>, and (z) with respect to any specific Collateral Loan, to require the Collateral Manager to take such discretionary action with respect to such Collateral Loan as directed by the Administrative Agent. In connection with any sale or proposed sale of the Collateral during the continuance of an Event of Default (whether pursuant to the Facility Documents or Applicable Law), the Borrower, the Parent or the Collateral Manager (or any Affiliate or designee thereof) shall have the exclusive right to acquire and/or refinance all Collateral Loans (but not in part) so long as (1) the Borrower, the Parent or the Collateral Manager (or any Affiliate or designee thereof) provides notice to the Administrative Agent of its intent to acquire and/or refinance the entire Collateral portfolio by 4:00 p.m. on the tenth (10<sup>th</sup>) Business Day following receipt of notice of the Administrative Agent's intent to liquidate the Collateral, (2) the Proceeds of such acquisition and/or refinancing are sufficient to extinguish all Obligations under the Facility Documents (other than unasserted contingent obligations) and (3) such acquisition and/or refinancing is completed within sixty (60) days of the date of the Administrative Agent's notice of intent to liquidate the Collateral.

*Section 1.02.Collateral Manager Termination Events*. *"Collateral Manager Termination Event"*, wherever used herein, means any one of the following events (whatever the reason for such Collateral Manager Termination Event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any Law of any Governmental Authority):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the Collateral Manager breaches in any material respect any covenant or agreement applicable to it under this Agreement or any other Facility Document to which it is a party (it being understood that failure to meet any Coverage Test, Concentration Limitation, Collateral Quality Test or the Maximum Advance Rate Default Test is not a breach under this <u>subclause (a)</u>), and, if capable of being cured, is not cured within 30 days (provided that breaches of <u>Sections 5.03(e)</u> and <u>5.04</u> shall not have any cure period) of the earlier of (i) a Responsible Officer of the Collateral Manager acquiring actual knowledge of such breach or (ii) its receiving written notice from any Agent of such breach;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the failure of any representation, warranty, or certification made or delivered by the Collateral Manager in or pursuant to this Agreement or any other Facility Document to be correct in any material respect when made and, if capable of being cured, is not cured within 30 days of the earlier of (i) a Responsible Officer of the Collateral Manager acquiring actual knowledge of such breach or (ii) its receiving written notice from any Agent of such failure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)(1) any material provision of a Facility Document shall (except in accordance with its terms) terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of the Collateral Manager or (2) the Collateral Manager shall, directly or indirectly, contest in any manner the effectiveness, validity, binding nature or enforceability of any Facility Document or any Lien purported to be created thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)the rendering of one or more final judgments, decrees or orders by a court or arbitrator of competent jurisdiction for the payment of money in excess individually or in the

750499896 22723957

<u>751700376 22723957</u>

------

aggregate of $20,000,000 against the Collateral Manager (net of amounts covered by insurance), and the Collateral Manager shall not have either (x) discharged or provided for the discharge of any such judgment, decree or order in accordance with its terms or (y) perfected a timely appeal of such judgment, decree or order and caused the execution of same to be stayed during the pendency of the appeal, in each case, within sixty (60) days from the date of entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)the failure of the Collateral Manager to make any payment when due (after giving effect to any related grace period set forth in the related agreements) under one or more agreements for borrowed money to which the Collateral Manager is a borrower thereunder in an aggregate amount in excess of $20,000,000, whether or not waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Main Street shall fail to maintain at least $2,000,000, 0000 of assets under management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)the occurrence of an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)a Change of Control in respect of the Collateral Manager occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)an Insolvency Event relating to the Collateral Manager occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)on any Monthly Report Determination Date, the Collateral Default Ratio shall exceed 10.00%; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) (i) the occurrence of an act by the Collateral Manager that constitutes fraud or criminal activity in the performance of its obligations under the Facility Documents (as determined pursuant to a final adjudication by a court of competent jurisdiction) or the Collateral Manager being indicted for a criminal offense materially related to its business of providing asset management services and such indictment remains undismissed for at least 90 days or (ii) any Responsible Officer of the Collateral Manager primarily responsible for the performance by the Collateral Manager of its obligations under the Facility Documents (in the performance of his or her investment management duties) is indicted for a criminal offense materially related to the business of the Collateral Manager providing asset management services and continues to have responsibility for the performance by the Collateral Manager hereunder for a period of ten (10) days after such indictment.

Upon the occurrence of a Collateral Manager Termination Event actually known to a Responsible Officer of the Administrative Agent, the Administrative Agent shall promptly notify the other Agent (and the Administrative Agent will notify the Lenders promptly) of such Collateral Manager Termination Event in writing. Upon the occurrence and during the continuance of a Collateral Manager Termination Event, the Administrative Agent, by written notice to the Collateral Manager (with a copy to the Custodian, Document Custodian, the Collateral Administrator and the Collateral Agent) (a *"Collateral Manager Termination Notice"*), may terminate all of the rights and obligations of the Collateral Manager as Collateral Manager under this Agreement in accordance with <u>Section 11.08</u>.

**Article VII**<br>**PLEDGE OF COLLATERAL; RIGHTS OF THE COLLATERAL AGENT**

*Section 1.01.Grant of Security*. (a) The Borrower hereby grants, pledges, transfers and collaterally assigns to the Collateral Agent, for the benefit of the Secured Parties, as collateral security for all Obligations, a continuing security interest in, and a Lien upon, all of the Borrower's right, title and interest in, to and under, the following property, in each case whether tangible or intangible, wheresoever located, and whether now owned by the Borrower or

750499896 22723957

<u>751700376 22723957</u>

------

hereafter acquired and whether now existing or hereafter coming into existence (all of the property described in this <u>Section 7.01(a)</u> being collectively referred to herein as the *"Collateral"*):

&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)all Collateral Loans and Related Documents (including those listed, as of the Closing Date, in <u>Schedule 3</u>), both now and hereafter owned, including all Collections and other Proceeds thereon or with respect thereto;

&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)each Covered Account and all Money and all investment property (including all securities, all security entitlements with respect to such Covered Account and all financial assets carried in such Covered Account) from time to time on deposit in or credited to each Covered Account;

&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)all interest, dividends, stock dividends, stock splits, distributions and other Money or property of any kind distributed in respect of the Collateral Loans of the Borrower, which the Borrower is entitled to receive, including all Collections in respect of its Collateral Loans;

&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)each Facility Document and all rights, remedies, powers, privileges and claims under or in respect thereto (whether arising pursuant to the terms thereof or otherwise available to the Borrower at law or equity), including the right to enforce each such Facility Document and to give or withhold any and all consents, requests, notices, directions, approvals, extensions or waivers under or with respect thereto, to the same extent as the Borrower could but for the assignment and security interest granted to the Collateral Agent under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)all Cash or Money in possession of the Borrower or delivered to the Collateral Agent (or its bailee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)all securities, loans, investments, accounts, chattel paper, deposit accounts, financial assets, general intangibles, instruments, investment property, letter-of-credit rights and supporting obligations of 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;(vii)all other property of any type or nature in which the Borrower has an interest (including the equity interests of each subsidiary of the Borrower) and all property of the Borrower which is delivered to the Collateral Agent (or the Custodian or Document Custodian on its behalf) by or on behalf of the Borrower (whether or not constituting Collateral Loans or Eligible Investments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)all Liens, collateral, property, guaranties, supporting obligations, insurance and other agreements or arrangements of whatever character from time to time supporting or securing payment of the assets, investments and properties described above; 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;(ix)all Proceeds of any and all of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All terms used in this <u>Section 7.01</u> that are defined in the UCC but are not defined in <u>Section 1.01</u> shall have the respective meanings assigned to such terms in the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Borrower confirms that, upon the occurrence and during the continuance of an Event of Default and until the Collection Date, the Collateral Agent (at the written direction of the Administrative Agent a copy of which direction shall also be provided to the Borrower to the extent delivery thereof to the Borrower is not prohibited by Applicable Law) on behalf of the Secured Parties shall have the sole right to enforce the Borrower's rights and remedies under the

750499896 22723957

<u>751700376 22723957</u>

------

Purchase and Contribution Agreement and any UCC financing statements filed under or in connection therewith for the benefit of the Secured Parties.

*Section 1.02.Release of Security Interest*. Upon the Collection Date or pursuant to <u>Section 8.07</u>, the Collateral Agent, on behalf of the Secured Parties, shall, at the expense of the Borrower, promptly execute, deliver and file or authorize for filing such instruments as the Borrower shall prepare and reasonably request in order to reassign, release or terminate the Secured Parties' security interest in the Collateral. The Secured Parties acknowledge and agree that upon the sale or disposition of any Collateral by the Borrower in compliance with the terms and conditions of this Agreement, the security interest of the Secured Parties in such Collateral shall immediately terminate and the Borrower shall provide notice thereof to the Collateral Agent and the Administrative Agent and the Collateral Agent, on behalf of the Secured Parties, shall, at the expense of the Borrower, execute, deliver and file or authorize for filing such instrument as the Borrower shall prepare and reasonably request to reflect or evidence such termination. Any and all actions under this <u>Article VII</u> in respect of the Collateral shall be without any recourse to, or representation or warranty by any Secured Party and shall be at the sole cost and expense of the Borrower.

*Section 1.03.Rights and Remedies*. The Collateral Agent (for itself and on behalf of the other Secured Parties) shall have all of the rights and remedies of a secured party under the UCC and other Applicable Law. Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent or its designees shall, at and in accordance with the written direction of the Administrative Agent or the Required Lenders acting through the Administrative Agent, (i) instruct the Borrower to deliver any or all of the Collateral, the Related Documents and any other documents relating to the Collateral to the Collateral Agent or its designees and otherwise give all instructions for the Borrower regarding the Collateral; (ii) sell or otherwise dispose of the Collateral in a commercially reasonable manner, all without judicial process or proceedings; (iii) take control of the Proceeds of any such Collateral; (iv) subject to the provisions of the applicable Related Documents, exercise any consensual or voting rights in respect of the Collateral; (v) release, make extensions, discharges, exchanges or substitutions for, or surrender all or any part of the Collateral; (vi) enforce the Borrower's rights and remedies with respect to the Collateral; (vii) institute and prosecute legal and equitable proceedings to enforce collection of, or realize upon, any of the Collateral; (viii) require that the Borrower immediately take all actions necessary to cause the liquidation of the Collateral in order to pay all amounts due and payable in respect of the Obligations, in accordance with the terms of the Related Documents; (ix) redeem or withdraw or cause the Borrower to redeem or withdraw any asset of the Borrower to pay amounts due and payable in respect of the Obligations; (x) make copies of or, if necessary, remove from the Borrower's, the Collateral Manager's and their respective agents' place of business all books, records and documents relating to the Collateral; and (xi) endorse the name of the Borrower upon any items of payment relating to the Collateral or upon any proof of claim in bankruptcy against an account debtor. In the absence of written direction of the Administrative Agent or the Required Lenders (acting through the Administrative Agent), the Collateral Agent shall not be required to take any action. In the absence of its gross negligence or willful misconduct, the Collateral Agent shall not be liable to the Administrative Agent, the Required Lenders or any other party for any action taken or omitted to be taken at the direction of the Administrative Agent or the Required Lenders (acting through the Administrative Agent) or any inactions in the absence thereof. To the extent permitted by applicable law, each of the Borrower and the Collateral Manager waive all claims, damages and demands it may have against the Collateral Agent and the Secured Parties arising out of the exercise by the Collateral Agent of any of their rights hereunder, except for any claims, damages and demands it may have against the Collateral Agent arising from the bath faith, willful misconduct or gross negligence of the Collateral Agent.

750499896 22723957

<u>751700376 22723957</u>

------

The Borrower hereby agrees that, upon the occurrence and during the continuance of an Event of Default, at the request of either the Administrative Agent or the Required Lenders (acting through the Administrative Agent), it shall execute all documents and agreements which are necessary or appropriate to have the Collateral to be assigned to the Collateral Agent or its designee. For purposes of taking the actions described in <u>clauses (i)</u> through (<u>xi)</u> of this <u>Section 7.03</u> the Borrower hereby irrevocably appoints the Collateral Agent as its attorney-in-fact (which appointment being coupled with an interest and is irrevocable while any of the Obligations remain unpaid, with power of substitution), in the name of the Collateral Agent or in the name of the Borrower or otherwise, for the use and benefit of the Collateral Agent (for the benefit of the Secured Parties), but at the cost and expense of the Borrower and, except as expressly required by Applicable Law, without notice to the Borrower. Such appointment shall in no way impose upon the Collateral Agent any obligation to take any such action unless specifically directed to do so by the Administrative Agent or the Required Lenders in accordance with this Agreement. The Collateral Agent shall not be deemed to assume any obligations of the Borrower as a result of the foregoing power of attorney and shall have no obligation to the Borrower to exercise any such rights thereunder except as otherwise directed by the Administrative Agent or the Required Lenders (acting through the Administrative Agent).

Notwithstanding anything in this <u>Section 7.03</u> to the contrary, the Collateral Agent shall be under no duty or obligation to take any affirmative action to exercise or enforce any power, right or remedy available to it under this Agreement unless and to the extent expressly so directed by the Administrative Agent, the Required Lenders or the Majority Lenders, as applicable; *provided* that the Collateral Agent shall not be required to take any action hereunder at the direction of the Administrative Agent or any Secured Party if such action would, in the reasonable determination of the Collateral Agent (x) be in violation of or contrary to Applicable Law or any provisions of this Agreement or other Facility Document or (y) expose the Collateral Agent to liability unless it has received reasonably satisfactory indemnity with respect thereto.

All sums paid or advanced by the Collateral Agent in connection with the foregoing and all out-of-pocket costs and expenses (including reasonable and documented attorneys' fees and expenses) incurred in connection therewith, together with interest thereon at the Past Due Rate from the date of payment until repaid in full, shall be paid by the Borrower to the Collateral Agent from time to time on demand in accordance with the Priority of Payments and shall constitute and become a part of the Obligations secured hereby.

*Section 1.04.Remedies Cumulative*. Each right, power, and remedy of the Agents and the other Secured Parties, or any of them, as provided for in this Agreement or in the other Facility Documents or now or hereafter existing at law or in equity or by statute or otherwise shall be cumulative and concurrent and shall be in addition to every other right, power, or remedy provided for in this Agreement or in the other Facility Documents or now or hereafter existing at law or in equity or by statute or otherwise, and the exercise or beginning of the exercise by either of the Agents or any other Secured Party of any one or more of such rights, powers, or remedies shall not preclude the simultaneous or later exercise by such Persons of any or all such other rights, powers, or remedies.

*Section 1.05.Related Documents*. (a) Each of the Borrower and the Collateral Manager hereby agrees that, to the extent not expressly prohibited by the terms of the Related Documents, after the occurrence and during the continuance of an Event of Default, it shall (i) upon the written request of the Administrative Agent, promptly forward to such Person all material information and notices which it receives under or in connection with the Related Documents relating to the Collateral, (ii) upon the written request of the Administrative Agent, promptly forward to the Administrative Agent any reasonably requested information relating to the specified Collateral Loans and (iii) act and refrain from acting in respect of any request, act,

750499896 22723957

<u>751700376 22723957</u>

------

decision or vote under or in connection with the Related Documents relating to the Collateral only in accordance with the direction of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Borrower agrees that, to the extent the same shall be in the Borrower's possession, it will hold all Related Documents relating to the Collateral in trust for the Collateral Agent on behalf of the Secured Parties, and upon request of the Administrative Agent following the occurrence and during the continuance of an Event of Default or as otherwise provided herein, promptly deliver the same to the Collateral Agent or its designee (including the Custodian). In addition, in accordance with <u>Article XIII</u>, promptly (and in any event, within five (5) Business Days) following its acquisition of any Collateral Loan the Borrower shall deliver to the Collateral Agent, the Collateral Administrator and the Administrative Agent, to the extent applicable, electronic copies of the Related Documents.

*Section 1.06.Borrower Remains Liable*. (a) Notwithstanding anything herein to the contrary, (i) the Borrower shall remain liable under the contracts and agreements included in and relating to the Collateral (including the Related Documents) to the extent set forth therein, and shall perform all of its duties and obligations under such contracts and agreements to the same extent as if this Agreement had not been executed, and (ii) the exercise by any Secured Party of any of its rights hereunder shall not release the Borrower from any of its duties or obligations under any such contracts or agreements included in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)No obligation or liability of the Borrower is intended to be assumed by the Administrative Agent or any other Secured Party under or as a result of this Agreement or the other Facility Documents, or the transactions contemplated hereby or thereby, including under any Related Document or any other agreement or document that relates to Collateral and, to the maximum extent permitted under provisions of Law, the Administrative Agent and the other Secured Parties expressly disclaim any such assumption.

*Section 1.07.Protection of Collateral*. The Borrower shall from time to time execute and deliver all such supplements and amendments hereto and file or authorize the filing of all such UCC-1 financing statements and continuation statements and the equivalent thereof in any applicable foreign jurisdiction, if applicable, instruments of further assurance and other instruments, and shall take such other action as may be necessary or advisable or desirable to secure the rights and remedies of the Secured Parties hereunder and 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;(i)grant security more effectively on all or any portion of the Collateral;

&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)maintain, preserve and perfect any grant of security made or to be made by this Agreement including the first priority nature of the Lien granted hereunder or to carry out more effectively the purposes hereof;

&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)perfect, publish notice of or protect the validity of any grant made or to be made by this Agreement (including any and all actions necessary or desirable as a result of changes in 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;(iv)enforce any of the Collateral or other instruments or property included in the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)preserve and defend title to the Collateral and the rights therein of the Collateral Agent and the Secured Parties in the Collateral against the claims of all third parties; 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;(vi)pay or cause to be paid any and all Taxes levied or assessed upon all or any part of the Collateral.

750499896 22723957

<u>751700376 22723957</u>

------

The Borrower hereby designates the Collateral Agent as its agent and attorney in fact to prepare and file any UCC-1 financing statement and continuation statement and the equivalent thereof in any applicable foreign jurisdiction, if applicable, and all other instruments, and take all other actions, required pursuant to this <u>Section 7.07</u>. Such designation shall not impose upon the Collateral Agent or the Administrative Agent or any other Secured Party, or release or diminish, the Borrower's obligations under this <u>Section 7.07</u> or <u>Section 5.01(c)</u>. The Borrower further authorizes the Administrative Agent to file, without the Borrower's signature, UCC-1 financing statements or the equivalent thereof in any foreign jurisdiction, if applicable, that name the Borrower as debtor and the Collateral Agent as secured party and that describes "all assets in which the debtor now or hereafter has rights" as the Collateral in which the Collateral Agent has a grant of security hereunder and any amendments or continuation statements that may be necessary or desirable.

**Article VIII**<br>**ACCOUNTS, ACCOUNTINGS AND RELEASES**

*Section 1.01.Collection of Money*. Except as otherwise expressly provided herein, the Collateral Agent shall, at the direction of the Administrative Agent, demand payment or delivery of, and shall collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all Money and other property payable to or receivable by the Collateral Agent pursuant to this Agreement, including all payments due on the Collateral, in accordance with the terms and conditions of such Collateral. The Collateral Agent shall segregate and hold all such Money and property received by it in trust for the Secured Parties and shall apply it as provided in this Agreement. Each Covered Account shall be established and maintained under the Account Control Agreement with a Qualified Institution. Any Covered Account may contain any number of component accounts for the convenience of the Collateral Agent or as required by the Collateral Manager for convenience in administering the Covered Account or the Collateral.

*Section 1.02.Collection Account*. (a) In accordance with this Agreement and the Account Control Agreement, the Borrower shall, on or prior to the Closing Date, establish at the Custodian the "*Collection Account*" which shall be maintained with the Custodian in accordance with the Account Control Agreement, which shall be subject to the Lien of the Collateral Agent and which shall consist of two segregated accounts, one of which will be designated the "*Interest Collection Account*" and one of which will be designated the "*Principal Collection Account*". The Collateral Agent shall from time to time deposit into the Interest Collection Account, in addition to the deposits required pursuant to <u>Section 8.05(a)</u>, immediately upon receipt thereof all Interest Proceeds received by the Collateral Agent. The Collateral Agent shall deposit immediately upon receipt thereof all other amounts remitted to the Collection Account into the Principal Collection Account including, in addition to the deposits required pursuant to <u>Section 8.05(a)</u>, all Principal Proceeds (unless simultaneously reinvested in additional Collateral Loans in accordance with <u>Article X</u> or in Eligible Investments or required to be deposited in the Revolving Reserve Account pursuant to <u>Section 8.04</u>) received by the Collateral Agent. All Monies deposited from time to time in the Collection Account pursuant to this Agreement shall be held by the Collateral Agent as part of the Collateral and shall be applied to the purposes herein provided. Subject to <u>Section 8.02(c)</u>, amounts in the Collection Account shall be reinvested pursuant to <u>Section 8.05(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)At any time when reinvestment is permitted pursuant to <u>Article X</u>, the Collateral Manager on behalf of the Borrower (subject to compliance with Article X) may, by delivery of a certificate or an email (of a .pdf or other similar file) instruction of a Responsible Officer of the Collateral Manager or a Trade Ticket, direct the Collateral Agent (with a copy to the Collateral Administrator) to, and upon receipt of such certificate, email or Trade Ticket, as applicable (which such certificate, Trade Ticket or email shall be deemed to be a certification of the

750499896 22723957

<u>751700376 22723957</u>

------

Collateral Manager that the applicable reinvestment is authorized and permitted by the Facility Documents and all conditions precedent to such reinvestment have been satisfied), the Collateral Agent shall, withdraw funds on deposit in the Principal Collection Account representing Principal Proceeds (together with accrued interest received with regard to any Collateral Loan and Interest Proceeds but only to the extent used to pay for accrued interest on an additional Collateral Loan) and reinvest such funds in additional Collateral Loans in accordance with such certificate, email or Trade Ticket. At any time as of which sufficient funds are not on deposit in the Revolving Reserve Account, the Collateral Manager on behalf of the Borrower may, by delivery of a certificate of a Responsible Officer of the Collateral Manager, direct the Collateral Agent (with a copy to the Collateral Administrator) to, and upon receipt of such certificate the Collateral Agent shall, withdraw funds on deposit in the Principal Collection Account representing Principal Proceeds and remit such funds as so directed by the Collateral Manager to meet the Borrower's funding obligations in respect of Delayed Drawdown Collateral Loans or Revolving Collateral Loans. In addition, in connection with any prepayment of Advances under <u>Section 2.05(a)</u>, the Collateral Manager on behalf of the Borrower may, by delivery of a certificate of a Responsible Officer of the Collateral Manager to the Collateral Agent and the Collateral Administrator, direct the Collateral Agent to, and upon receipt of such certificate the Collateral Agent shall, withdraw funds on deposit in the Principal Collection Account representing Principal Proceeds and remit such funds as so directed by the Collateral Manager to the Lenders in connection with such prepayment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Collateral Agent shall transfer to the Payment Account, from the Collection Account for application pursuant to <u>Section 9.01(a)</u>, on the Business Day prior to each Payment Date, the amount set forth to be so transferred in the Monthly Report for such Payment Date.

*Section 1.03.Transaction Accounts*. (a) *Payment Account*. In accordance with this Agreement and the Account Control Agreement, the Borrower shall, on or prior to the Closing Date, establish at the Custodian a single, segregated non-interest bearing trust account in the name "MSCC Funding I, LLC Payment Account, subject to the lien of the Collateral Agent", which shall be designated as the *"Payment Account"*, which shall be maintained by the Borrower with the Custodian in accordance with the Account Control Agreement and which shall be subject to the Lien of the Collateral Agent. Except as provided in <u>Section 9.01</u>, the only permitted withdrawal from or application of funds on deposit in, or otherwise to the credit of, the Payment Account shall be to pay amounts due and payable under the Priority of Payments on the Payment Dates in accordance with their terms and the provisions of this Agreement. The Borrower shall not have any legal, equitable or beneficial interest in the Payment Account other than in accordance with this Agreement and the Priority of Payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Custodial Account*. In accordance with this Agreement and the Account Control Agreement, the Borrower shall, on or prior to the Closing Date, establish at the Custodian a single, segregated non-interest bearing trust account in the name "MSCC Funding I, LLC Custodial Account, subject to the lien of the Collateral Agent", which shall be designated as the *"Custodial Account"*, which shall be maintained by the Borrower with the Custodian in accordance with the Account Control Agreement and which shall be subject to the Lien of the Collateral Agent. All Collateral Loans shall be credited to the Custodial Account.

*Section 1.04.The Revolving Reserve Account; Fundings*. In accordance with this Agreement and the Account Control Agreement, the Borrower shall, on or prior to the Closing Date, establish at the Custodian a single, segregated non-interest bearing trust account in the name "MSCC Funding I, LLC Revolving Reserve Account, subject to the lien of the Collateral Agent", which shall be designated as the *"Revolving Reserve Account",* which shall be maintained by the Borrower with the Custodian in accordance with the Account Control Agreement and which shall be subject to the Lien of the Collateral Agent. The only permitted deposits to or withdrawals from the Revolving Reserve Account shall be in accordance with the

750499896 22723957

<u>751700376 22723957</u>

------

provisions of this Agreement. The Borrower shall not have any legal, equitable or beneficial interest in the Revolving Reserve Account other than in accordance with this Agreement and the Priority of Payments.

On the Commitment Termination Date and at all times thereafter, the Borrower shall maintain an amount (the "*Revolving Reserve Required Amount*") in the Revolving Reserve Account at least equal to the sum of (x) the Revolving Exposure, *plus* (y) the aggregate amount of funds needed to settle purchases of Collateral Loans which the Borrower committed, prior to the end of the Reinvestment Period, to acquire after the Commitment Termination Date. Prior to or immediately after the occurrence of the Commitment Termination Date (other than a Commitment Termination Date following the occurrence of an Insolvency Event with respect to the Borrower, the Parent or the Collateral Manager), the Borrower shall be deemed to have requested a final Borrowing in an amount sufficient to fund the Revolving Reserve Required Amount.

During the Reinvestment Period, fundings of Delayed Drawdown Collateral Loans and Revolving Collateral Loans shall be made using, first, amounts on deposit in the Revolving Reserve Account, then available Principal Proceeds on deposit in the Collection Account and finally, available Borrowings. After the Commitment Termination Date, fundings of Delayed Drawdown Collateral Loans and Revolving Collateral Loans shall be made using, first, amounts on deposit in the Revolving Reserve Account, then available Principal Proceeds on deposit in the Collection Account. In addition, after the Commitment Termination Date, all Principal Proceeds received with respect to Revolving Collateral Loans shall be deposited into the Revolving Reserve Account to the extent such proceeds may be reborrowed by the related Obligors.

Amounts on deposit in the Revolving Reserve Account will be invested in overnight funds that are Eligible Investments selected by the Collateral Manager pursuant to <u>Section 8.05</u> and earnings from all such investments will be deposited in the Interest Collection Account as Interest Proceeds. Funds in the Revolving Reserve Account (other than earnings from Eligible Investments therein) will be available solely to cover drawdowns on the Delayed Drawdown Collateral Loans and Revolving Collateral Loans and settle purchases of Collateral Loans committed to be acquired by the Borrower prior to the end of the Reinvestment Period; *provided* that, to the extent that the aggregate amount of funds on deposit therein at any time exceeds the Revolving Reserve Required Amount, the Borrower shall direct the Collateral Agent to and the Collateral Agent, at the direction of the Borrower (or the Collateral Manager on its behalf), shall remit such excess to the Principal Collection Account. In addition, following the occurrence of an Event of Default, funds in the Revolving Reserve Account may be withdrawn by the Collateral Agent and deposited into the Principal Collection Account pursuant to and at the direction of the Administrative Agent.

*Section 1.05.Reinvestment of Funds in Covered Accounts; Reports by Collateral Agent*. (a) By delivery of a certificate of a Responsible Officer (which may be in the form of standing instructions), the Borrower (or the Collateral Manager on behalf of the Borrower) shall at all times direct the Collateral Agent to, and, upon receipt of such certificate, the Collateral Agent shall, in accordance with such direction, invest all funds on deposit in the Collection Account (including the Principal Collection Account and the Interest Collection Account) and the Revolving Reserve Account as so directed in Eligible Investments having stated maturities no later than the Business Day preceding the next Payment Date (or such shorter maturities expressly provided herein). If, prior to the occurrence of an Event of Default, the Collateral Manager shall not have given any such investment directions, the Collateral Agent shall invest and reinvest such funds as fully as practicable in the Specified Eligible Investment (or if none has been selected, such funds shall remain uninvested). After the occurrence and during the continuation of an Event of Default, the Collateral Agent (as directed by the Administrative Agent) shall invest and reinvest such Monies as fully as practicable in Specified Eligible

750499896 22723957

<u>751700376 22723957</u>

------

Investments selected by the Administrative Agent in accordance with the definition of Specified Eligible Investment (and if no Specified Eligible Investment has been specified, such funds shall be invested in the Specified Eligible Investment selected by the Collateral Manager or held uninvested if none has been selected). Except to the extent expressly provided otherwise herein, all interest, gain, loss and other income from such investments shall be deposited, credited or charged (as applicable) in and to the Interest Collection Account. Absent its timely receipt of such instruction from the Collateral Manager in accordance with the foregoing, the Collateral Agent shall not be under an obligation to invest (or pay interest on) funds held hereunder. The Collateral Agent shall in no way be liable for any insufficiency in a Covered Account resulting from any loss relating to any such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Collateral Agent agrees to give the Borrower prompt notice if any Covered Account or any funds on deposit in any Covered Account, or otherwise to the credit of a Covered Account, shall become subject to any writ, order, judgment, warrant of attachment, execution or similar process. All Covered Accounts shall remain at all times with the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Collateral Administrator shall supply, in a timely fashion, to the Borrower and the Collateral Manager any information regularly maintained by the Collateral Administrator that the Borrower or the Collateral Manager may from time to time reasonably request with respect to the Collateral, the Covered Accounts and the other Collateral and provide any other requested information reasonably available to the Collateral Administrator and required to be provided by <u>Section 8.06</u> or to permit the Collateral Manager to perform its obligations hereunder or the Borrower's obligations hereunder that have been delegated to the Collateral Manager. The Collateral Administrator shall promptly forward to the Collateral Manager copies of notices and other writings received by it from the Obligor of any Collateral Loan or from any Clearing Agency with respect to any Collateral Loan which notices or writings advise the holders of such Collateral Loan of any rights that the holders might have with respect thereto (including requests to vote with respect to amendments or waivers and notices of prepayments and redemptions) as well as all periodic financial reports received from such Obligor and Clearing Agency with respect to such Obligor.

*Section 1.06.Accountings*. (a) *Monthly*. Not later than (i) <u>January 20, 2023 and</u> (ii) two Business Days prior to the 24<u>25</u><sup>th</sup> day of each calendar month, beginning with January<u>February</u> 2023 (such date, the *"Monthly Reporting Date"*), the Collateral Manager shall compile and provide to the Agents and the Lenders, a monthly report (each, a *"Monthly Report"*) in accordance with this <u>Section 8.06</u>. The Collateral Manager shall compile and provide to the Collateral Administrator and the Administrative Agent a loan data file (the *"Data File"*) for the previous monthly period ending on the Monthly Report Determination Date (containing such information agreed upon by the Collateral Manager, the Collateral Administrator and the Administrative Agent). The Collateral Manager shall provide (or cause to be provided) the Data File to the Collateral Administrator and the Administrative Agent at least six<u>(x) four (4) Business Days prior to the January 2023 Monthly Reporting Date and (y) five</u> (6<u>5</u>) Business Days prior to the<u>any subsequent</u> Monthly Reporting Date. The Collateral Administrator shall use commercially reasonable efforts to review and, based solely on the Data File provided by the Collateral Manager, confirm the calculations in <u>clauses (i)</u> through <u>(xii)</u> below made by the Collateral Manager in any such Monthly Report for such calendar month, within two<u>three</u> (2<u>3</u>) Business Days of the receipt thereof and shall review and verify the Monthly Report to ensure that it is complete on its face and, based solely on the information provided on the related Data File, that the following items in such Monthly Report have been accurately calculated, if applicable, and reported: (i) Aggregate Collateral Balance, (ii) Borrowing Base, (iii) Excess Concentration Amount, (iv) Maximum Available Amount, (v) Net Aggregate Exposure Amount, (vi) each Collateral Quality Test, (vii) each Coverage Test, (viii) the Maximum Advance Rate Default Test, (ix) Collateral Default Ratio, (x) completion of Priority of Payments pursuant to <u>Section 9.01(a)</u>, (xi) Interest Collection Account, Principal Collection Account and Revolving Reserve

750499896 22723957

<u>751700376 22723957</u>

------

Account balances, and (xii) other information as may be mutually agreed upon by the Collateral Administrator, the Collateral Manager and the Administrative Agent. Upon receipt of such confirmation (or report showing discrepancies) by the Collateral Manager and the Administrative Agent from the Collateral Administrator, and in any event by no later than the Monthly Reporting Date, the Collateral Manager shall compile and provide (or cause to be compiled and provided) to the Agents and the Lenders the Monthly Report. As used herein, the *"Monthly Report Determination Date"* with respect to any calendar month will be the 5<sup>th</sup> Business Day of such calendar month<u>last day of the most recently completed Collection Period</u>. The Monthly Report for a calendar month shall contain the information with respect to the Collateral Loans and Eligible Investments included in the Collateral set forth in <u>Schedule 2</u>, and shall be determined as of the Monthly Report Determination Date for such calendar month.

In addition, the Borrower shall provide (or cause to be provided) in each Monthly Report a statement setting forth in reasonable detail each amendment, modification or waiver under any Related Document for each Collateral Loan that constitutes a Material Modification that became effective since the immediately preceding Monthly Report (or, in respect of the first Monthly Report, from the Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Failure to Provide Accounting*. If the Collateral Agent shall not have received any accounting provided for in this <u>Section 8.06</u> on the first Business Day after the date on which such accounting is due to the Collateral Agent, the Collateral Agent shall notify the Collateral Manager who shall use all reasonable efforts to obtain such accounting by the applicable Monthly Reporting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Subject to the terms of this Agreement, the Collateral Agent, Document Custodian or Custodian, as applicable, shall, upon the receipt of a certificate of a Responsible Officer of the Collateral Manager, deliver any Collateral as instructed in such certificate, and execute such documents or instruments as are presented by the Borrower or the Collateral Manager and are reasonably necessary to release or cause to be released such loan from the Lien of this Agreement, which is set for any mandatory call or redemption or payment in full to the appropriate paying agent on or before the date set for such call, redemption or payment, in each case against receipt of the call or redemption price or payment in full thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)As provided in <u>Section 8.02(a)</u>, the Collateral Manager or the Collateral Agent shall deposit any proceeds received by it from the disposition of any Collateral in the Interest Collection Account or the Principal Collection Account, as applicable and as instructed by the Collateral Manager, unless simultaneously applied to the purchase of additional Collateral Loans

750499896 22723957

<u>751700376 22723957</u>

------

or Eligible Investments as permitted under and in accordance with the requirements of this <u>Article VIII</u> and <u>Article X</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Collateral Agent shall, upon receipt of a certificate of a Responsible Officer of the Borrower (or the Collateral Manager on its behalf), certifying that there are no Commitments outstanding and all Obligations of the Borrower hereunder and under the other Facility Documents have been satisfied, release any remaining Collateral from the Lien of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Any Collateral Loan or amounts that are released pursuant to <u>Section 8.07(a)</u> or <u>(b)</u> shall automatically be released from the Lien of this Agreement.

*Section 1.08.Reports by Independent Accountants*. The Borrower or the Collateral Manager will cause a firm of nationally recognized independent public accountants reasonably acceptable to the Administrative Agent (who may also render other services to the Collateral Manager) (together with its successors, the *"Independent Accountants"*) to furnish to the Administrative Agent and each Lender (a) by the six-month anniversary of the Closing Date (the "*Initial AUP Date*") and (b) annually thereafter, by each anniversary of the Initial AUP Date, in each case, a report relating to such calendar year to the effect that (i) such firm has applied certain agreed-upon procedures, and (ii) based on such examination, such firm is of the opinion that the Monthly Reports for such year (or, such period of time since the Closing Date, as applicable) were prepared in compliance with this Agreement, except for such exceptions as it believes to be immaterial and such other exceptions as shall be set forth in such firm's report (including with respect to any such exceptions, an explanation of how each such exception arose and reflecting the input/explanation of the Collateral Manager thereto). The fees of such Independent Accountants and any successor shall be payable by the Borrower.

*Section 1.09.Covered Account Details*. The account number of each Covered Account is set forth on <u>Schedule 6</u>.

**Article IX**<br>**APPLICATION OF MONIES**

*Section 1.01.Disbursements of Monies from Payment Account*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any other provision in this Agreement, but subject to the other subsections of this <u>Section 9.01</u>, on each Payment Date, the Collateral Agent shall disburse amounts transferred from the Collection Account to the Payment Account pursuant to <u>Section 8.02</u> in accordance with the Monthly Report and the following priorities (the *"Priority of 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;(i)On each Payment Date prior to the occurrence and continuance of an Event of Default, Interest Proceeds on deposit in the Interest Collection Account, to the extent received on or before the related Determination Date (or, if such Determination Date is not a Business Day, the next succeeding Business Day) will be transferred into the Payment Account, to be applied in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)to pay registration, registered office and filing fees, if any, of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)(1) *first*, to pay all out-of-pocket costs and expenses of the Collateral Agent incurred in connection with any sale of Collateral or exercise of other remedial rights pursuant to <u>Section 7.03</u>; (2) *second*, to pay Administrative

750499896 22723957

<u>751700376 22723957</u>

------

Expenses (in the order of priority set forth in the definition thereof); *provided* that the amounts payable in this <u>clause (2)</u> shall not exceed the Administrative Expense Cap; and (3) *third*, to pay the Collateral Agent all amounts owed pursuant to Erroneous Payment Subrogation Rights without regard to the Administrative Expense Cap;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)to the Administrative Agent to pay all fees and expenses of the Administrative Agent under the Facility Documents and all amounts owed pursuant to Erroneous Payment Subrogation Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)(1) *first*, to the Collateral Manager to pay the Senior Collateral Management Fee, *plus* any Senior Collateral Management Fee that remains due and unpaid in respect of any prior Payment Dates as a result of insufficient funds and (2) *second*, to pay Collateral Manager Expenses, *provided* that the amounts in this <u>clause (2)</u> shall not exceed the Collateral Manager Expense Cap;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)to each Lender (including the Swingline Lender), *pro rata,* based on amounts owed, to pay accrued and unpaid Interest on the Advances and Commitment Fees due to each such Lender and amounts payable to each such Lender under <u>Section 2.10</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)(i) if any of the Coverage Tests are not satisfied as of the related Determination Date, to pay the principal of the Advances of each Lender (*pro rata*, based on each Lender's Percentage) until the Coverage Tests are satisfied (on a *pro forma* basis as at such Determination Date) and (ii) if each of the Coverage Tests are satisfied as of the related Determination Date, to make any required Permitted RIC Distributions that are solely based on the income of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)(i) during the Reinvestment Period, at the discretion of the Collateral Manager, for deposit into the Revolving Reserve Account until the amount on deposit therein equals the Revolving Reserve Required Amount (as if such amount was in effect prior to the end of the Reinvestment Period) and (ii) after the Reinvestment Period, for deposit into the Revolving Reserve Account until the amount on deposit therein equals the Revolving Reserve Required Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)to pay, on a *pro rata* basis, accrued and unpaid amounts owing to Affected Persons (if any) under <u>Sections 2.09</u> and <u>16.04</u>, all other fees, expenses or indemnities owed to the Secured Parties or Indemnified Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)(1) *first*, to the payment or application of amounts referred to in <u>clause (B)</u> above (in the same order of priority specified therein), to the extent not paid in full pursuant to applications under such clause, (2) *second*, to the payment or application of amounts referred to in <u>clause (C)</u> above to the extent not paid in full pursuant to such clause, and (3) *third*, to the payment or application of amounts referred to in <u>clause (D)(2)</u> above to the extent not paid in full pursuant to such clause;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(J)to the Collateral Manager to pay the accrued and unpaid Subordinated Collateral Management Fee that remains due and payable, and any Subordinated Collateral Management Fee that remains due and unpaid in respect of any prior Payment Dates; and

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(K)any remaining amounts shall<u>, at the discretion of the Borrower, (i)</u> be released to the Borrower or its designee<u>, (ii) remain in the Interest Collection Account or (iii) be transferred to the Principal Collection Account</u>.

&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)On each Payment Date prior to the occurrence and continuance of an Event of Default, except for any Principal Proceeds that will be used to settle binding commitments entered into prior to the related Determination Date for the purchase of Collateral Loans, Principal Proceeds on deposit in the Principal Collection Account that are received on or before the related Determination Date (or, if such Determination Date is not a Business Day, the next succeeding Business Day) will be transferred to the Payment Account to be applied in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)to the payment of unpaid amounts under <u>clauses (A)</u> through <u>(F)</u> in <u>clause (i)</u> above (in the same order of priority specified therein), to the extent not paid in full thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)at the discretion of the Collateral Manager, all remaining amounts shall be allocated to any one or more of the following payments: (1) during the Reinvestment Period, to the Principal Collection Account for the purchase of additional Collateral Loans (including funding Revolving Collateral Loans and Delayed Drawdown Collateral Loans), (2) during the Reinvestment Period, to prepay the Advances, (3) for deposit into the Revolving Reserve Account until the amount on deposit therein equals the Revolving Reserve Required Amount, and/or (4) during the Reinvestment Period, if each Collateral Quality Test and Coverage Test is satisfied and no Event of Default or Default has occurred (and has not been waived), to the Borrower or its designee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)after the Reinvestment Period, to pay the Advances of each Lender (including the Swingline Lender) (*pro rata*, based on each Lender's Percentage) until the Advances are paid in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)to the payment of amounts referred to in <u>clauses (H)</u>, <u>(I)</u> and <u>(J)</u> of <u>clause (i)</u> above (in the same order of priority specified therein), to the extent not paid in full thereunder; *provided*, that if the amount on deposit in the Revolving Reserve Account equals or exceeds the amount of the outstanding Advances, the Borrower (or the Collateral Manager on its behalf) may elect to withdraw such amounts from the Revolving Reserve Account and repay the Advances in full; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)any remaining amount<u>amounts</u> shall<u>, at the discretion of the Borrower, (i)</u> be released to the Borrower or its designee <u>or (ii) remain in the Principal Collection Account</u>.

&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)On each Payment Date following the occurrence and continuance of an Event of Default, all Interest Proceeds in the Interest Collection Account and all Principal Proceeds in the Principal Collection Account, except for any Principal Proceeds that will be used to settle binding commitments entered into prior to the related Determination Date for the purchase of Collateral Loans, in each case, to the extent received on or before the related Determination Date (or, if such Determination Date is not a Business Day, the next succeeding Business Day) will be transferred to the Payment Account to be applied in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)to pay registration, registered office and filing fees, if any, of the Borrower;

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)(1) *first*, to pay all out-of-pocket costs and expenses of the Collateral Agent incurred in connection with any sale of Collateral or exercise of other remedial rights pursuant to <u>Section 7.03</u> (including the appointment of a Successor Collateral Manager) and all amounts owed pursuant to Erroneous Payment Subrogation Rights; (2) *second*, to pay Administrative Expenses as provided in <u>Section 9.01(a)(i)(B)</u> and without regard to the Administrative Expense Cap and (3) *third*, to the Administrative Agent to pay all fees and expenses of the Administrative Agent under the Facility Documents and all amounts owed pursuant to Erroneous Payment Subrogation Rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)(1) *first*, to the Collateral Manager to pay the Senior Collateral Management Fee, *plus* any Senior Collateral Management Fee that remains due and unpaid in respect of any prior Payment Dates as a result of insufficient funds and (2) *second*, to pay Collateral Manager Expenses in accordance with the priorities specified in the definition thereof, *provided* that the amounts in this <u>clause (2)</u> shall not exceed the Collateral Manager Expense Cap;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)to each Lender (including the Swingline Lender), *pro rata*, based on amounts owed, to pay accrued and unpaid Interest on the Advances and Commitment Fees due to each such Lender and amounts payable to each such Lender under <u>Section 2.10</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E)to pay the principal of the Advances, *first,* of the Swingline Lender, and *second,* of each other Lender (*pro rata*, based on each Lender's Percentage) until paid in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F)to pay, on a *pro rata* basis, accrued and unpaid amounts owing to Affected Persons (if any) under <u>Sections 2.09</u> and <u>16.04</u>, all other fees, expenses or indemnities owed to the Secured Parties or Indemnified Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(G)(1) *first*, to the Collateral Manager to pay the accrued and unpaid Subordinated Collateral Management Fees that remain due and unpaid and any Subordinated Collateral Management Fees that remain due and unpaid in respect of any prior Payment Dates and (2) *second*, to the payment of amounts referred to in <u>clause (C)(2)</u> above to the extent not paid in full pursuant to such clause; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(H)any remaining amount shall be released to the Borrower or its designee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If on any Payment Date the amount available in the Payment Account is insufficient to make the full amount of the disbursements required by the Monthly Report, the Collateral Agent shall make the disbursements called for in the order and according to the priority set forth under <u>Section 9.01(a)</u> to the extent funds are available therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Collateral Manager may, in its sole discretion, elect to irrevocably waive payment of any or all of any Collateral Management Fees otherwise due on any Payment Date by notice to the Borrower and the Collateral Agent (with a copy to the Collateral Administrator) no later than one (1) Business Day prior to such Payment Date. Any such Collateral Management Fee, once waived, shall not thereafter become due and payable and any claim of the Collateral Manager therein shall be extinguished.

**Article X**<br>

750499896 22723957

<u>751700376 22723957</u>

------

<br>**SALE OF COLLATERAL LOANS; PURCHASE OF <br>ADDITIONAL COLLATERAL LOANS**

*Section 1.01.Sales of Collateral Loans*. (a) *Discretionary Sales of Collateral Loans*. Subject to the satisfaction of the conditions specified in <u>Section 10.04</u>, the Collateral Manager on behalf of the Borrower may, but will not be required to, direct the Collateral Agent to sell (and the Collateral Agent shall sell in the manner directed by the Collateral Manager) any Collateral Loan if such sale meets the requirements set forth below (as shown in the Borrowing Base Calculation Statement delivered with respect thereto in accordance with <u>Section 5.03(e)(iii)</u>) and after giving effect to such sale and all other sales or purchases previously or simultaneously committed 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;(i)no Default or Event of Default is continuing or would result upon giving effect thereto (unless, if a Default exists at the time of sale (but no Event of Default exists), such Default will be cured upon giving effect to such sale and all other sales or purchases previously or simultaneously committed to and the application of the proceeds thereof);

&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)upon giving effect thereto and the application of the proceeds thereof, the Maximum Advance Rate Test is satisfied;

&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)upon giving effect thereto and the application of the proceeds thereof (or, with respect to the Interest Coverage Ratio Test, as of the most recent Monthly Reporting Date), the Interest Coverage Ratio Test is satisfied and each Collateral Quality Test is satisfied or, if such Collateral Quality Test is not satisfied, either the compliance with any such test is maintained or improved or the Administrative Agent has consented to such sale in its sole discretion;

&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)such sale is made for Cash and such proceeds are deposited into the Collection Account; 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;(v)in the reasonable judgment of the Collateral Manager, there is no material adverse selection of such Collateral Loans (as evidenced by a *pro forma* compliance, maintenance or improvement of the Borrowing Base); *provided* that the restriction in this clause (v) shall not apply to sales of Defaulted Collateral Loans or Ineligible Collateral Loans.

Notwithstanding anything above that would otherwise prohibit the sale of a Collateral Loan after the occurrence or during the continuance of a Default or an Event of Default, if the Borrower entered into an agreement to sell any such Collateral Loan prior to the occurrence of such Default or an Event of Default, but such sale did not settle prior to the occurrence of such Default or an Event of Default, then the Borrower shall be permitted to consummate such sale notwithstanding the occurrence of such Default or an Event of Default, *provided* that such sale was not entered into in contemplation of the occurrence of such Default or Event of Default and such settlement occurs within the customary settlement period for similar trades.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Sales of Equity Securities.* The Borrower may sell any Equity Security at any time without restriction, and shall use its commercially reasonable efforts to effect the sale of any Equity Security, regardless of price within forty-five days of receipt if such Equity Security constitutes Margin Stock, unless such sale is prohibited by Applicable Law or contract, in which case such Equity Security should be sold as soon as such sale is permitted by Applicable Law or contract.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Repurchase or Substitution of Ineligible Collateral Loans.* Notwithstanding <u>Section 10.01(a)</u>, if on any day a Collateral Loan is required to be repurchased (or a replacement Collateral Loan is to be substituted for such ineligible Collateral Loan pursuant to Section 6.1 of the Purchase and Contribution Agreement), the Borrower shall either make a deposit of the funds received by the Borrower from the Parent pursuant to the Purchase and Contribution Agreement or accept the replacement Collateral Loan from the Parent in substitution for such ineligible Collateral Loan in accordance with <u>Section 10.03</u>. Upon confirmation of the deposit of the amount described above into the Collection Account or the delivery to the Borrower of the replacement Collateral Loan, such ineligible Collateral Loan shall be removed from the Collateral and the Collateral Agent, for the benefit of the Secured Parties, shall automatically and without further action be deemed to release to the Borrower, without recourse, representation or warranty, all the right, title and interest and any Lien of the Collateral Agent, for the benefit of the Secured Parties in, to and under such ineligible Collateral Loan.

*Section 1.02.Purchase of Additional Collateral Loans*. On any date during the Reinvestment Period, if no Event of Default has occurred and is continuing, the Collateral Manager on behalf of the Borrower may, if each of the conditions specified in this <u>Section 10.02</u> and <u>Section 10.04</u> are met, invest Principal Proceeds (and accrued interest received with respect to any Collateral Loan to the extent used to pay for accrued interest on additional Collateral Loans) in additional Collateral Loans, *provided*, that no Collateral Loan may be purchased unless each of the following conditions are satisfied as of the date the Collateral Manager commits on behalf of the Borrower to make such purchase and after giving effect to such purchase and all other sales or purchases previously or simultaneously committed 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;(i)such obligation is an Eligible Collateral Loan;

&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)each Collateral Quality Test is satisfied (or, if not satisfied immediately prior to such investment, compliance with such Collateral Quality Test is maintained or improved); 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;(iii)each Coverage Test is satisfied (or, in the case of the Interest Coverage Ratio Test, was satisfied as of the most recent Monthly Reporting Date).

*Section 1.03.Substitution and Transfer of Loans*. (a) *Substitutions.* The Borrower may (including in connection with any retransfer of a Collateral Loan to the Parent under the Purchase and Contribution Agreement) replace any Collateral Loan with another Collateral Loan (a *"Substitute Loan"*), subject to the satisfaction of the conditions set forth in <u>clause (b)</u> below and in <u>Section 10.04</u>; *provided* that, at any time after the Reinvestment Period, such substitution will require the consent of the Administrative Agent in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*Conditions to Substitution.* No substitution of a Collateral Loan with a Substitute Loan shall occur unless each of the following conditions is satisfied as of the date of such substitution (as certified to the Agents by the Borrower (or the Collateral Manager on behalf of 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;(i)each Substitute Loan is an Eligible Collateral Loan on the date of substitution;

&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)after giving effect to any such substitution, each Coverage Test and each Collateral Quality Test is satisfied (or, if such Collateral Quality Test is not satisfied immediately prior to such investment, compliance with such Collateral Quality Test is maintained or improved);

750499896 22723957

<u>751700376 22723957</u>

------

&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)the sum of the Principal Balances of such Substitute Loans shall be equal to or greater than the sum of the Principal Balances of the Collateral Loans being substituted for;

&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)no Default or Event of Default has occurred and is continuing (before or after giving effect to such substitution unless, in the case of such a Default, such Default will be cured upon giving effect to such sale and the application of the proceeds thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)the Collateral Manager acting on behalf of the Borrower shall notify the Administrative Agent of any amount to be deposited into the Collection Account in connection with any such substitution and shall deliver to the Document Custodian the Related Documents for any Substitute Loan in accordance with <u>Article XIII</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)upon confirmation of the delivery of a Substitute Loan for each applicable Collateral Loan being substituted for (the date of such confirmation or delivery, the *"Retransfer Date"*), each applicable Collateral Loan being substituted for shall be removed from the Collateral and the applicable Substitute Loan(s) shall be included in the Collateral. On the Retransfer Date of a Collateral Loan, the Collateral Agent, for the benefit of the Secured Parties, shall automatically and without further action be deemed to release and transfer to the Borrower, without recourse, representation or warranty, all the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties, in, to and under such Collateral Loan being substituted for. The Collateral Agent, for the benefit of the Secured Parties, shall, at the sole expense of the Borrower, execute such documents and instruments of transfer as may be prepared by the Collateral Manager, on behalf of the Borrower, and take other such actions as shall reasonably be requested by the Borrower to effect the release and transfer of such Collateral Loan pursuant to this <u>Section 10.03</u>; 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;(vii)the Borrower shall deliver to the Administrative Agent on the date of such substitution a certificate of a Responsible Officer certifying that each of the foregoing is true and correct as of such date.

*Section 1.04.Conditions Applicable to All Sale, Substitution and Purchase Transactions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Any transaction effected under this <u>Article X</u> (other than sales or substitutions required by <u>Section 10.01(c)</u>) or in connection with the acquisition of additional Collateral Loans shall be for fair market value and, if effected with a Person that is an Affiliate of the Collateral Manager (or with an account or portfolio for which the Collateral Manager or any of its Affiliates serves as investment adviser), shall be (i) on terms no less favorable to the Borrower than would be the case if such Person were not such an Affiliate or as otherwise expressly permitted in this Agreement, (ii) effected in accordance with all Applicable Laws, (iii) during the 12-month period most recently ended prior to the relevant date of determination (or such lesser number of months as shall have elapsed since the Closing Date), and after giving *pro forma* effect to such transaction, the value of Collateral Loans substituted or sold by the Borrower to Affiliates of the Collateral Manager may not exceed 25% of the highest Aggregate Principal Balance of Collateral Loans of the Borrower during such 12-month period (or such higher percentage as agreed to by the Administrative Agent); <u>provided</u> that of such 25% limitation, the Borrower may only substitute Parent Collateral Loans or sell Parent Collateral Loans to the Parent (excluding Collateral Loan repurchased or substituted pursuant to Section 6.1 of the Purchase and Contribution Agreement) if the aggregate of such sales and substitutions does not exceed 20% of Parent Collateral Loan Balance and (iv) during the 12-month period most recently ended prior to the relevant date of determination (or such lesser number of months as shall have elapsed since the Closing Date), and after giving *pro forma* effect to such transaction,

750499896 22723957

<u>751700376 22723957</u>

------

the value of Defaulted Collateral Loans or distressed Collateral Loans (excluding Collateral Loan repurchased or substituted pursuant to Section 6.1 of the Purchase and Contribution Agreement) substituted or sold by the Borrower to Affiliates of the Collateral Manager may not exceed 10% of the highest Aggregate Principal Balance of Collateral Loans of the Borrower during such 12-month period; <u>provided</u> that of such 10% limitation, the Borrower may only substitute Parent Collateral Loans or sell Parent Collateral Loans to the Parent (excluding Collateral Loan repurchased or substituted pursuant to Section 6.1 of the Purchase and Contribution Agreement) if the aggregate of such sales and substitutions does not exceed 10% of Parent Collateral Loan Balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Upon each acquisition by the Borrower of a Collateral Loan (i) all of the Borrower's right, title and interest to such Collateral Loan shall be subject to the Lien granted to the Collateral Agent pursuant to this Agreement and (ii) such Collateral Loan shall be Delivered to the Collateral Agent.

*Section 1.05.Additional Equity Contributions*. The Parent may, but shall have no obligation to, at any time or from time to time make a capital contribution to the Borrower for any purpose, including for the purpose of curing any Default, satisfying any Coverage Test or the Maximum Advance Rate Default Test, enabling the acquisition or sale of any Collateral Loan or satisfying any conditions under <u>Section 3.02</u>. Each contribution shall either be made (i) in Cash (in which event such contributions shall be made by deposit into the Collection Account), (ii) by assignment and contribution of an Eligible Investment and/or (iii) by assignment of a Collateral Loan that is an Eligible Collateral Loan. In connection with any contribution described in this <u>Section 10.05</u> (other than a contribution of a portion of the purchase price of a Collateral Loan acquired in accordance with the Purchase and Contribution Agreement), the Collateral Manager shall provide written instruction to the Administrative Agent identifying (a) the subclause under which such contribution is being made (the *"Contribution Notice"*) and (b)(x) in the case of contributions made in Cash, (A) the timing of such contribution and (B) the amount of such contribution and (y) in the case of contributions made by assignment and contribution of an Eligible Investment and/or by assignment of a Collateral Loan that is an Eligible Collateral Loan, (A) the name of such Eligible Investment and/or Collateral Loan and (B) attaching the accompanying assignment forms. All Cash contributed to the Borrower shall be treated as Principal Proceeds, except to the extent that the Collateral Manager specifies in the Contribution Notice that such Cash shall constitute Interest Proceeds and shall be deposited into the Collection Account in accordance with <u>Section 8.02</u> as designated by the Collateral Manager.

**Article XI**<br>**ADMINISTRATION AND SERVICING OF CONTRACTS**

*Section 1.01.Designation of the Collateral Manager*. (a) *Initial Collateral Manager*. The servicing, administering and collection of the Collateral shall be conducted in accordance with this <u>Section 11.01</u> by the Person designated as the Collateral Manager hereunder. Main Street is hereby appointed as, and hereby accepts such appointment and (until the Administrative Agent gives Main Street a Collateral Manager Termination Notice) agrees to perform the duties and responsibilities, of Collateral Manager pursuant to the terms hereof. The Collateral Manager and the Borrower hereby acknowledge that each of the Secured Parties are third party beneficiaries of the obligations taken by the Collateral Manager hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Subcontracts*. The Collateral Manager may, with the prior written consent of the Administrative Agent, subcontract with any other Person for back office, servicing and administrative functions or collecting the Collateral; *provided* that (i) the Collateral Manager shall select any such Person with reasonable care and shall be solely responsible for the fees and expenses payable to such Person, (ii) the Collateral Manager shall not be relieved of, and shall

750499896 22723957

<u>751700376 22723957</u>

------

remain liable for, the performance of the duties and obligations of the Collateral Manager pursuant to the terms hereof without regard to any subcontracting arrangement, and (iii) any such subcontract shall be terminable upon the occurrence of a Collateral Manager Termination Event and shall be subject to the provisions hereof.

*Section 1.02.Duties of the Collateral Manager*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Manager shall take or cause to be taken all such actions as may be necessary or advisable to service, administer and collect on the Collateral from time to time, all in accordance with Applicable Law and the Collateral Management Standard. Without limiting the foregoing, the duties of the Collateral Manager shall include the following:

&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)the sole and exclusive authority to make any and all decisions with respect to the Collateral and take or refrain from taking any and all actions with respect to the Collateral, supervising the Collateral, including communicating with Obligors, executing amendments, providing consents and waivers, exercising voting rights, enforcing and collecting on the Collateral and otherwise managing the Collateral on behalf of 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;(ii)preparing and submitting claims to Obligors on each Collateral Loan;

&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)maintaining all necessary servicing records with respect to the Collateral and providing such reports to the Administrative Agent and each Lender (with copies to the Collateral Agent, the Custodian and the Collateral Administrator) in respect of the servicing of the Collateral (including information relating to its performance under this Agreement) as may be required hereunder or as the Administrative Agent or any Lender may reasonably request;

&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)maintaining and implementing administrative and operating procedures (including an ability to recreate servicing records evidencing the Collateral in the event of the destruction of the originals thereof) and keeping and maintaining all documents, books, records and other information reasonably necessary or advisable for the collection of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)promptly delivering to the Administrative Agent, each Lender, the Collateral Administrator, the Custodian or the Collateral Agent, from time to time, such information and servicing records (including information relating to its performance under this Agreement) as the Administrative Agent, each Lender, the Collateral Administrator, the Custodian or the Collateral Agent may from time to time reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)identifying each Collateral Loan clearly and unambiguously in its servicing records to reflect that such Collateral Loan is owned by the Borrower and that the Borrower is pledging a security interest therein to the Collateral Agent (for the benefit of the Secured Parties) pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)notifying the Administrative Agent and each Lender of any material action, suit, proceeding, dispute, offset, deduction, defense or counterclaim (1) that is or is threatened to be asserted by an Obligor with respect to any Collateral Loan (or portion thereof) of which it has actual knowledge or has received notice; or (2) that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)maintaining the perfected security interest of the Collateral Agent, for the benefit of the Secured Parties, in the Collateral;

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)with respect to each Collateral Loan included as part of the Collateral, making copies of the Related Documents available for inspection by the Administrative Agent, upon reasonable notice, at the offices of the Collateral Manager during normal business hours;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)directing the Collateral Agent (with a copy to the Collateral Administrator) to make payments pursuant to the terms of the Monthly Report in accordance with the Priority of 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;(xi)directing the acquisition, sale or substitution of Collateral in accordance with <u>Article X</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)providing assistance to the Borrower with respect to the purchase and sale of the Collateral Loans and Eligible Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)instructing the Obligors and the administrative agents on the Collateral Loans (or, in the case of a participation interest, the participation seller) to make payments directly into the Collection Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)preparing the Monthly Reports and cooperating with the Collateral Administrator in their duties hereunder in the manner and at the times required hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)delivering assignments and promissory notes to the Document Custodian; 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;(xvi)complying with such other duties and responsibilities as required of the Collateral Manager by this Agreement.

It is acknowledged and agreed that in circumstances in which a Person other than the Borrower or the Collateral Manager acts as lead agent with respect to any Collateral Loan, the Collateral Manager shall perform its administrative and management duties hereunder only to the extent a lender under the applicable Related Documents has the right to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything to the contrary contained herein, the exercise by the Administrative Agent, the Collateral Agent, the Collateral Administrator, each Lender and the Secured Parties of their rights hereunder or any other Facility Document shall not release the Collateral Manager (unless replaced by a Successor Collateral Manager) or the Borrower from any of their duties or responsibilities with respect to the Collateral. The Secured Parties, the Administrative Agent, each Lender, the Collateral Administrator and the Collateral Agent shall not have any obligation or liability with respect to any Collateral, nor shall any of them be obligated to perform any of the obligations of the Collateral Manager hereunder, unless one of them becomes a Successor Collateral Manager hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Any payment by an Obligor in respect of any indebtedness owed by it to the Borrower shall, except as otherwise specified by such Obligor or otherwise required by contract or Law and unless otherwise instructed by the Administrative Agent, be applied as a collection of a payment by such Obligor (starting with the oldest such outstanding payment due, *provided* such obligation is not on non-accrual) to the extent of any amounts then due and payable thereunder before being applied to any other receivable or other obligation of such Obligor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Collateral Manager agrees to supervise and assist in the investment and reinvestment of the Collateral, and shall perform on behalf of the Borrower the duties that have been expressly delegated to the Collateral Manager in this Agreement and any other Facility Document (and the Collateral Manager shall have no obligation to perform any other duties

750499896 22723957

<u>751700376 22723957</u>

------

hereunder or otherwise) and, to the extent necessary or appropriate to perform such duties, the Collateral Manager shall have the power to execute and deliver all necessary and appropriate documents and instruments on behalf of the Borrower with respect thereto. The Collateral Manager shall comply with the terms and conditions hereof and any other Facility Document expressly applicable to it, in its capacity as the Collateral Manager, or otherwise affecting the duties and functions that have been delegated to it thereunder and hereunder as the Collateral Manager and shall perform its obligations hereunder and thereunder in accordance with the Collateral Management Standard.

*Section 1.03.Limited Liability of the Collateral Manager.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Manager and any of its Affiliates, employees, shareholders, members, partners, assigns, representatives or agents (each such individual or entity, a "*Collateral Manager Person"*) shall not be liable to the Borrower, any Lender, the Administrative Agent, the Collateral Agent, the Collateral Administrator, the Custodian or any other Person for any liability, loss (including amounts paid in settlement), damages, judgments, costs, expenses (including reasonable attorneys' fees and expenses and accountant's fees and expenses), demands, charges or claim (collectively, the "*Damages*") incurred by reason of any act or omission or alleged act or omission performed or omitted by such Collateral Manager Person, or for any decrease in the value of the Collateral or any other losses suffered by any party; *provided*, *however*, that the Collateral Manager shall be liable for any Damages that arise (i) by reason of any act or omission constituting bad faith, willful misconduct, or gross negligence by any Collateral Manager Person in the performance of or reckless disregard of the Collateral Manager's duties hereunder or (ii) by any breach of the representations and warranties of the Collateral Manager expressly set forth in this Agreement (each such breach, a "*Collateral Manager Breach*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Collateral Manager may rely in good faith upon, and will incur no Damages for relying upon, (i) any authoritative source customarily used by firms performing services similar to those services provided by the Collateral Manager under this Agreement, and (ii) the advice of nationally recognized counsel, accountants or other advisors as the Collateral Manager determines reasonably appropriate in connection with the services provided by the Collateral Manager under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In no event shall the Collateral Manager be liable for special, indirect or consequential losses or damages of any kind whatsoever (including but not limited to lost profits) even if the Collateral Manager has been advised of the likelihood of such damages and regardless of the form of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Collateral Manager Person shall be held harmless and be indemnified by the Borrower for any Damages suffered by virtue of any acts or omissions or alleged acts or omissions arising out of the activities of such Collateral Manager Person in the performance of the obligations of the Collateral Manager under this Agreement or as a result of this Agreement, or the Borrower's ownership interest in any portion of the Collateral, except to the extent any such Damage arises as a result of a Collateral Manager Breach. All amounts payable pursuant to this <u>Section 11.03</u> shall be payable in accordance with the Priority of Payments.

*Section 1.04.Authorization of the Collateral Manager*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each of the Borrower, the Administrative Agent and each Lender hereby authorizes the Collateral Manager (including any successor thereto) to take any and all reasonable steps in its name and on its behalf necessary or desirable in the determination of the Collateral Manager and not inconsistent with the sale of the Collateral Loans by the Parent to the Borrower under the Purchase and Contribution Agreement and, thereafter, the grant by the

750499896 22723957

<u>751700376 22723957</u>

------

Borrower to the Collateral Agent, on behalf of the Secured Parties, hereunder, to collect all amounts due under any and all Collateral, including endorsing any of their names on checks and other instruments representing Collections, executing and delivering any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the Collateral and, after the delinquency of any Collateral and to the extent permitted under and in compliance with Applicable Law, to commence proceedings with respect to enforcing payment thereof, to the same extent as the Collateral Manager could have done if it owned such Collateral. The Borrower shall furnish the Collateral Manager (and any successors thereto) with any powers of attorney and other documents necessary or appropriate to enable the Collateral Manager to carry out its collateral management and administrative duties hereunder, and shall cooperate with the Collateral Manager to the fullest extent in order to carry out its obligations hereunder. In case any reasonable question arises as to its duties hereunder, the Collateral Agent and the Collateral Administrator may request instructions from the Administrative Agent and shall be entitled at all times to refrain from taking any actions unless it has received instruction from the Administrative Agent. In no event shall the Collateral Manager be entitled to make any Secured Party a party to any litigation without such Person's express prior written consent, or to make the Borrower a party to any litigation (other than any routine foreclosure or similar collection procedure) without the Administrative Agent's consent.

*Section 1.05.Collection Efforts; Modification of Collateral*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Manager will use commercially reasonable efforts to collect, or cause to be collected, all payments called for under the terms and provisions of the Collateral Loans included in the Collateral as and when the same become due, all in accordance with the Collateral Management Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)In the performance of its obligations hereunder, the Borrower (or the Collateral Manager on its behalf) may enter into any amendment or waiver of or supplement to any Related Document; *provided* that the prior written consent of the Required Lenders shall be required if an Event of Default has occurred and is continuing or would result from such amendment, waiver or supplement. For the avoidance of doubt, any Collateral Loan that, as a result of any amendment or supplement thereto, ceases to qualify as an Eligible Collateral Loan shall not be included in the Borrowing Base.

*Section 1.06.Collateral Management Compensation*. As compensation for its servicing and collateral management activities hereunder and reimbursement for its expenses, the Collateral Manager shall be entitled to be paid the Collateral Management Fees and reimbursed its expenses as provided in the Priority of Payments (subject to <u>Section 9.01(c)</u>).

*Section 1.07.The Collateral Manager Not to Resign*. The Collateral Manager shall not resign from the obligations and duties hereby imposed on it except upon the Collateral Manager's determination that (a) the performance of its duties hereunder is or becomes impermissible under Applicable Law and (b) there is no reasonable action that the Collateral Manager could take to make the performance of its duties hereunder permissible under Applicable Law. Any such determination permitting the resignation of the Collateral Manager shall be evidenced as to <u>clause (a)</u> above by an opinion of counsel to such effect delivered to the Administrative Agent and each Lender. No such resignation shall become effective until a Successor Collateral Manager shall have assumed the responsibilities and obligations of the Collateral Manager in accordance with <u>Section 11.08</u> below.

*Section 1.08.Collateral Manager Termination Notice; Appointment of Successor Collateral Manager*.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Borrower, the Collateral Manager, each Lender and the Administrative Agent hereby agree that, upon the occurrence and during the continuance of a Collateral Manager Termination Event, the Administrative Agent may (1) provide at least ten (10) Business Days' prior written notice to the Collateral Manager of its intent to remove the Collateral Manager, and (2) following the expiration of such ten (10) Business Day period, provide a Collateral Manager Termination Notice to the Collateral Manager (with a copy to the Collateral Agent and the Collateral Administrator) and terminate all of the rights, obligations, power and authority of the Collateral Manager under this Agreement. On and after the receipt by the Collateral Manager of a Collateral Manager Termination Notice pursuant to this <u>Section 11.08(a)</u>, the Collateral Manager shall continue to perform all servicing and administrative functions under this Agreement until the date specified in the Collateral Manager Termination Notice or otherwise specified by the Administrative Agent in writing or, if no such date is specified in such Collateral Manager Termination Notice or otherwise specified by the Administrative Agent, until a date mutually agreed upon by the Collateral Manager and the Administrative Agent and shall be entitled to receive the Collateral Management Fees therefor accrued until such date. After such date, the Collateral Manager agrees that it will terminate its activities as Collateral Manager hereunder in a manner that the Administrative Agent believes will facilitate the transition of the performance of such activities to the Successor Collateral Manager, and except as provided herein the Successor Collateral Manager shall assume each and all of the Collateral Manager's obligations to service and administer the Collateral, on the terms and subject to the conditions herein set forth, and the Collateral Manager shall use its reasonable best efforts to assist the Successor Collateral Manager in assuming such obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)At any time following the delivery of a Collateral Manager Termination Notice and after the occurrence or declaration of the Commitment Termination Date, the Administrative Agent may appoint a successor collateral manager (the *"Successor Collateral Manager"*) with notice to the Collateral Agent and the Collateral Administrator, which appointment shall take effect upon the Successor Collateral Manager accepting such appointment by a written assumption in a form satisfactory to the Administrative Agent in its sole discretion. Upon the appointment of a Successor Collateral Manager, the initial Collateral Manager shall have no liability with respect to any action performed by the Successor Collateral Manager on or after the date that the Successor Collateral Manager assumes the servicing and administrative duties of the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Upon its appointment, the Successor Collateral Manager shall be the successor in all respects to the Collateral Manager with respect to collateral management functions under this Agreement and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Collateral Manager by the terms and provisions hereof, and all references in this Agreement to the Collateral Manager shall be deemed to refer to the Successor Collateral Manager; *provided* that the Successor Collateral Manager shall have (i) no liability with respect to any action performed by the terminated Collateral Manager prior to the date that the Successor Collateral Manager becomes the successor to the Collateral Manager or any claim of a third party based on any alleged action or inaction of the terminated Collateral Manager, (ii) no obligation to perform any advancing or any repurchase or substitution obligations, if any, of the Collateral Manager unless it elects to do so in its sole discretion, (iii) no obligation to pay any Taxes required to be paid by the Collateral Manager (*provided* that the Successor Collateral Manager shall pay any income Taxes for which it is liable), (iv) no obligation to pay any of the fees and expenses of any other party to the transactions contemplated hereby, and (v) no liability or obligation with respect to any Collateral Manager indemnification obligations of any prior Collateral Manager, including the original Collateral Manager. The indemnification obligations of the Successor Collateral Manager, upon becoming a Successor Collateral Manager, are expressly limited to those arising on account of its failure to act in good faith and with reasonable care under the circumstances. In addition, the Successor Collateral Manager shall have no liability relating to the representations and warranties of the Collateral Manager contained in

750499896 22723957

<u>751700376 22723957</u>

------

<u>Section 4.02</u>. Any other provision in this Agreement notwithstanding, if a Successor Collateral Manager is appointed, it shall perform its obligations hereunder in good faith and with reasonable care, exercising a degree of skill and attention no less than what it exercises to service similar assets for itself and for others, such standard of care to be the *"Collateral Management Standard"* applicable to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Borrower acknowledges that, after delivery of a Collateral Manager Termination Notice and after the occurrence or declaration of the Commitment Termination Date, the Administrative Agent or any of its Affiliates may act as the Successor Collateral Manager, and the Borrower waives any and all claims against the Administrative Agent, each Lender or any of their respective Affiliates, the Collateral Agent, the Custodian, the Document Custodian, the Collateral Administrator and any of their Affiliates and the Collateral Manager (other than claims relating to such Person's gross negligence or willful misconduct) relating in any way to the custodial or collateral administration functions having been performed by the Administrative Agent or any of its Affiliates in any capacity hereunder in accordance with the terms and provisions (including the standard of care) set forth in the Facility Documents.

**Article XII**<br>**THE AGENTS**

*Section 1.01.Authorization and Action*. Each Lender hereby irrevocably appoints and authorizes the Administrative Agent, the Collateral Administrator and the Collateral 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 Facility Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, subject to the terms hereof. No Agent shall have any duties or responsibilities, except those expressly set forth herein or in the other Facility Documents to which it is a party, or any fiduciary relationship with any Secured Party, and no implied covenants, functions, responsibilities, duties or obligations or liabilities on the part of such Agent shall be read into this Agreement or any other Facility Document to which such Agent is a party (if any) as duties on its part to be performed or observed. No Agent shall have or be construed to have any other duties or responsibilities in respect of this Agreement or any other Facility Document and the transactions contemplated hereby or thereby. As to any matters not expressly provided for by this Agreement or the other Facility Documents, no Agent shall 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 Majority Lenders or, with respect to the Collateral Agent, the Administrative Agent; *provided* that such Agent shall not be required to take any action which exposes such Agent, in its judgment, to personal liability, cost or expense or which is contrary to this Agreement, the other Facility Documents or Applicable Law, or would be, in its judgment, contrary to its duties hereunder, under any other Facility Document or under Applicable Law. Each Lender agrees that in any instance in which the Facility 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.

If the Collateral Agent has been requested or directed by the Majority Lenders or the Required Lenders, as applicable (or by the Administrative Agent acting at the direction of the Majority Lenders or the Required Lenders), to take any action pursuant to any provision of this Agreement or any other Facility Document, the Collateral Agent shall not be under any obligation to exercise any of the rights or powers vested in it by this Agreement or such Facility Document in the manner so requested unless it shall have been provided indemnity reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred by it in

750499896 22723957

<u>751700376 22723957</u>

------

compliance with or in performing such request or direction. No provision of this Agreement or any other Facility Document shall otherwise be construed to require the Collateral Agent to expend or risk its own funds or to take any action that could in its judgment cause it to incur any cost, expenses or liability, unless it is provided indemnity acceptable to it against any such expenditure, risk, costs, expense or liability. For the avoidance of doubt, the Collateral Agent shall not have any duty or obligation to take any action to exercise or enforce any power, right or remedy available to it under this Agreement or any other Facility Document or any Related Document unless and until directed by the Majority Lenders or the Required Lenders, as applicable (or the Administrative Agent on their behalf).

Neither the Collateral Agent nor any officer, agent or representative thereof shall be personally liable for any action taken by any such Person in accordance with any notice given by the Majority Lenders or the Required Lenders, as applicable (or by the Administrative Agent acting at the direction of the Majority Lenders or the Required Lenders), pursuant to the terms of this Agreement or any other Facility Document even if, at the time such action is taken by any such Person, the Majority Lenders or the Required Lenders, as applicable, or Persons purporting to be the Majority Lenders or the Required Lenders, as applicable, are not entitled to give such notice, except where the Responsible Officer of the Collateral Agent has actual knowledge (without any duty of inquiry or investigation on its part) that the Majority Lenders or the Required Lenders, as applicable, or Persons purporting to be the Majority Lenders or the Required Lenders, as applicable, are not entitled to give such notice. The Collateral Agent shall be entitled to conclusively rely upon directions provided by the Administrative Agent as if provided by the requisite Lenders authorized to provide such direction hereunder. If any dispute or disagreement shall arise as to the allocation of any sum of money received by the Collateral Agent hereunder or under any Facility Document, the Collateral Agent shall have the right to deliver such sum to a court of competent jurisdiction and therein commence an action for interpleader.

If in performing its duties under this Agreement, the Collateral Agent is required to decide between alternative courses of action, it may request written instructions from the Administrative Agent as to the course of action desired by it. If the Collateral Agent does not receive such instructions within five Business Days after it has requested them, the Collateral Agent may, but shall be under no duty to, take or refrain from taking any such courses of action. The Collateral Agent shall act in accordance with instructions received after such five-Business Day period except to the extent it has already, in good faith, taken or committed itself to take, action inconsistent with such instructions.

*Section 1.02.Delegation of Duties*. Each Agent may execute any of its duties under this Agreement and each other Facility Document by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

*Section 1.03.Agent's Reliance, Etc.* (a) None of the Agents nor any of their respective 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 Facility Documents, except for its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, each Agent: (i) may consult with legal counsel (including counsel for the Borrower or the Collateral Manager 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

750499896 22723957

<u>751700376 22723957</u>

------

other Facility Documents; (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 Facility Documents or any Related Documents or any notice, consent, certificate, instruction or waiver, report, statement, opinion, direction or other instrument or writing on the part of the Borrower or the Collateral Manager or any other Person or to inspect the property (including the books and records) of the Borrower or the Collateral Manager; (iv) shall not be responsible to any Secured Party or any other Person for the due execution, legality, validity, enforceability, perfection, genuineness, sufficiency or value of any Collateral, this Agreement, the other Facility Documents, any Related Document 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 (including monitoring, maintaining or filing of any financing or continuation statements); (v) shall incur no liability under or in respect of this Agreement or any other Facility Document by relying on or acting upon (or by refraining from action in reliance on) any notice, consent, certificate (including for the avoidance of doubt, the Borrowing Base Calculation Statement), 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 believed by it to be signed or sent by the proper Person; (vi) other than as expressly set forth herein, shall not be responsible to any Person for any recitals, statements, information, representations or warranties regarding the Borrower or the Collateral or in any document, certificate or other writing delivered in connection herewith or therewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of thereof or any such other document or the financial condition of any Person or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions related to any Person or the existence or possible existence of any Default or Event of Default; and (vii) other than as expressly set forth herein, shall not have any obligation whatsoever to any Person to assure that any collateral exists or is owned by any Person or is cared for, protected or insured or that any liens have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available with respect thereto. No Agent shall have any liability to the Borrower or any Lender or any other Person for the Borrower's, the Collateral Manager's, any Lender's or any other Person'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 Facility Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No Agent shall be liable for the actions or omissions of any other Agent (including, without limitation, concerning the application of funds) or other party to a Facility Document, or under any duty to monitor or investigate compliance on the part of any other Agent or other party to a Facility Document with the terms or requirements of this Agreement, any Facility Documents or any Related Documents, or their duties hereunder or thereunder. Each 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 (including, without limitation, each Notice of Borrowing received hereunder). No Agent shall 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). No Agent shall be liable for any error of judgment made in good faith unless it shall be proven by a court of competent jurisdiction that such Agent was grossly negligent in ascertaining the relevant facts. Nothing herein or in any Facility Documents or Related Documents shall obligate any 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

750499896 22723957

<u>751700376 22723957</u>

------

other liability for which it is not adequately indemnified. No Agent shall be liable for any indirect, special, punitive or consequential damages (including but not limited to lost profits) whatsoever, even if it has been informed of the likelihood thereof and regardless of the form of action. No Agent shall be charged with knowledge or notice of any matter (including any Default or Event of Default) unless actually known to a Responsible Officer of such Agent, or unless and to the extent written notice of such matter is received by such Agent at its address in accordance with <u>Section 16.02</u>. Any permissive grant of power to an Agent hereunder shall not be construed to be a duty to act. Each Agent shall have only the duties and responsibilities as are specifically set forth in this Agreement and no covenants, implied duties or obligations shall be implied in this Agreement against any Agent. Before acting hereunder, an Agent shall be entitled to request, receive and rely upon such certificates and opinions as it may reasonably determine appropriate with respect to the satisfaction of any specified circumstances or conditions precedent to such action. Neither Agent shall 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. Neither Agent shall 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 or grossly negligent performance or omission of its duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No Agent shall 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, diseases, pandemics, quarantines, governmental regulations imposed after the fact, fire, communication line failures, computer viruses, power failures, loss or malfunction of utilities, communications or computer (software and hardware) services, earthquakes or other disasters, national emergency, malware or ransomware attack, unavailability of the Federal Reserve wire or telex system or other applicable wire or funds transfer system, or unavailability of any securities clearing system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The delivery of reports and other documents and information to the Collateral Agent hereunder or under any other Facility Document is for informational purposes only and the Collateral Agent's receipt of such documents and information shall not constitute constructive notice of any information contained therein or determinable from information contained therein. The Collateral Agent is hereby authorized and directed to execute and deliver the other Facility Documents to which it is a party. Whether or not expressly stated in such Facility Documents, in performing (or refraining from acting) thereunder, the Collateral Agent shall have all of the rights, benefits, protections and indemnities that are afforded to it in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Lender acknowledges that except as expressly set forth in this Agreement, no Agent has made any representation or warranty to it, and that no act by any Agent hereafter taken, including any consent and acceptance of any assignment or review of the affairs of the Borrower, shall be deemed to constitute any representation or warranty by such Agent to any Secured Party as to any matter. Each Lender represents to each Agent that it has, independently and without reliance upon such Agent and based on such documents and information as it has deemed appropriate, made its own appraisal of an investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and the Collateral Manager, and made its own decision to enter into this Agreement and the other Facility Documents to which it is a party. Each Lender also represents that it will, independently and without reliance upon any Agent or any other Secured Party 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 this Agreement and the Facility Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Borrower and the

750499896 22723957

<u>751700376 22723957</u>

------

Collateral Manager. No Agent shall have any duty or responsibility to provide any Secured Party with any credit or other information concerning the business, prospects, operations, property, financial or other condition or creditworthiness of the Borrower or Collateral Manager which may come into the possession of such Agent.

*Section 1.04.Indemnification*. Each of the Lenders agrees to indemnify and hold the Agents, the Document Custodian, the Custodian (including Citibank, as "Securities Intermediary" under the Account Control Agreement (acting at the direction of the Collateral Agent (acting at the direction of the Secured Parties, following the delivery of notice of exclusive control under the Account Control Agreement))), harmless (to the extent not reimbursed by or on behalf of the Borrower pursuant to <u>Section 16.04</u> or otherwise) from and against any and all Liabilities which may be imposed on, incurred by, or asserted against the Agents in any way relating to or arising out of this Agreement or any other Facility Document or any Related Document or any action taken or omitted by the Agents under this Agreement or any other Facility Document or any Related Document; *provided* that no Lender shall be liable to any Agent for any portion of such Liabilities resulting from such Agent's gross negligence or willful misconduct; and *provided, further*, that no Lender shall be liable to the Collateral Agent for any portion of such Liabilities unless such Liabilities are imposed on, incurred by, or asserted against the Collateral Agent as a result of any action taken, or not taken, by the Collateral Agent by the express terms of this Agreement or at the direction of the Administrative Agent or such Lender or Lenders, as the case may be, in accordance with the terms and conditions set forth in this Agreement (it being understood and agreed that the Collateral Agent shall be under no obligation to exercise or to honor any of the rights or powers vested in it by this Agreement at the request or direction of the Administrative Agent or any of the Lenders (or other Persons authorized or permitted under the terms hereof to make such request or give such direction) pursuant to this Agreement or any of the other Facility Document, unless the Administrative Agent or such Lenders shall have provided to the Collateral Agent security or indemnity reasonably satisfactory to it against the costs, expenses (including reasonable and documented attorney's fees and expenses) and Liabilities which might reasonably be incurred by it in compliance with such request or direction, whether such indemnity is provided under this <u>Section 12.04</u> or otherwise). The rights of the Agents and obligations of the Lenders under or pursuant to this <u>Section 12.04</u> shall survive the termination of this Agreement, and the earlier removal or resignation of any Agent hereunder.

*Section 1.05.Successor Agents*. Subject to the terms of this <u>Section 12.05</u>, each Agent may, upon thirty days' notice to the Lenders and the Borrower, resign as Administrative Agent or Collateral Agent, as applicable. If an 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 thirty days of notice of resignation such Agent may appoint a successor agent. The appointment of any successor 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) a Default or Event of Default shall have occurred and is continuing or (ii) if such successor agent is a Lender or an Affiliate of such Agent or any Lender. Any resignation of an Agent shall be effective upon the appointment of a successor agent pursuant to this <u>Section 12.05</u>. After the effectiveness of any retiring Agent's resignation hereunder as Agent, the retiring Agent shall be discharged from its duties and obligations hereunder and under the other Facility Documents and the provisions of this <u>Article XII</u> shall continue in effect for its benefit with respect to any actions taken or omitted to be taken by it while it was Agent under this Agreement and under the other Facility Documents. Any Person (i) into which the Collateral Agent may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Collateral Agent shall be a party, or (iii) that may succeed to the corporate trust properties and assets of the Collateral Agent substantially as a whole, shall be the successor to the Collateral Agent under this Agreement without further act of any of the parties to this Agreement. If no successor Collateral Agent or

750499896 22723957

<u>751700376 22723957</u>

------

Collateral Administrator, as applicable, shall have been appointed and an instrument of acceptance by a successor Collateral Agent or Collateral Administrator, as applicable, shall not have been delivered to the Collateral Agent or the Collateral Administrator, as applicable, within sixty days after giving of notice of resignation by the Collateral Agent or the Collateral Administrator, as applicable, the resigning Collateral Agent or Collateral Administrator, as applicable, may petition any court of competent jurisdiction for the appointment of a successor Collateral Agent or Collateral Administrator, as applicable.

*Section 1.06.Compensation*. The Borrower agrees to pay, and the Collateral Agent shall be entitled to receive, compensation for the Collateral Agent's performance of the duties called for herein as provided in the Collateral Agent and Collateral Administrator Fee Letter. The Borrower agrees to pay or reimburse to the Collateral Agent upon its request from time to time all reasonable and documented out-of-pocket costs, disbursements, advances, and expenses (including reasonable fees and expenses of legal counsel) incurred in connection with the preparation or execution of this Agreement, or in connection with the transactions contemplated hereby or the administration of this Agreement or performance by the Collateral Agent of its duties and services under this Agreement (including costs and expenses of any action deemed necessary by the Collateral Agent to collect any amounts owing to it under this Agreement). All payments hereunder, including, but not limited to indemnities, shall be paid in accordance with the Priority of Payments.

*Section 1.07.Erroneous Payments*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)If the Administrative Agent or the Collateral Agent notifies a Lender or Secured Party, or any Person who has received funds on behalf of a Lender or Secured Party (any such Lender, Secured Party or other recipient, a "*Payment Recipient*"), that the Administrative Agent or the Collateral Agent has determined in its sole discretion (whether or not after receipt of any notice under immediately succeeding <u>clause (b)</u>) that any funds received by such Payment Recipient from the Administrative Agent, the Collateral Agent, on behalf of the Administrative Agent, or any of their Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Lender, Secured Party or other Payment Recipient on its behalf) (any such funds, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "*Erroneous Payment*") and demands the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the Administrative Agent or the Collateral Agent, on behalf of the Administrative Agent, and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent or the Collateral Agent, on behalf of the Administrative Agent, and such Lender or Secured Party shall (or, with respect to any Payment Recipient who received such funds on its behalf, shall cause such Payment Recipient to) promptly, but in no event later than two Business Days thereafter, return to the Administrative Agent or the Collateral 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 or the Collateral Agent in same day funds at the greater of the Federal Funds 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 or the Collateral Agent to any Payment Recipient under this <u>clause (a)</u> shall be conclusive, absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Without limiting immediately preceding <u>clause (a)</u>, each Lender or Secured Party, or any Person who has received funds on behalf of a Lender or Secured Party, hereby further agrees that if it receives a payment, prepayment or repayment (whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise) from the

750499896 22723957

<u>751700376 22723957</u>

------

Administrative Agent or the Collateral Agent (or any of its Affiliates) (x) that 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 the Collateral Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent or the Collateral Agent (or any of its Affiliates), or (z) that such Lender or Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part) in each case:

&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)&nbsp;&nbsp;&nbsp;&nbsp;(A) in the case of immediately preceding <u>clauses (x)</u> or <u>(y)</u>, an error shall be presumed to have been made (absent written confirmation from the Administrative Agent or the Collateral Agent to the contrary) or (B) an error has been made (in the case of immediately preceding <u>clause (z)</u>), in each case, with respect to such payment, prepayment or repayment; 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;(ii)&nbsp;&nbsp;&nbsp;&nbsp;such Lender or Secured Party shall (and shall cause any other recipient that receives funds on its respective behalf to) promptly (and, in all events, within one Business Day of its knowledge of such error) notify the Administrative Agent or the Collateral 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 or the Collateral Agent pursuant to this <u>Section 12.07(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Each Lender or Secured Party hereby authorizes the Administrative Agent and the Collateral Agent to set off, net and apply any and all amounts at any time owing to such Lender or Secured Party under any Facility Document, or otherwise payable or distributable by the Administrative Agent or the Collateral Agent to such Lender or Secured Party from any source, against any amount due to the Administrative Agent or the Collateral Agent under immediately preceding <u>clause (a)</u> or under the indemnification provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent or the Collateral Agent for any reason, after demand therefor by the Administrative Agent or the Collateral Agent in accordance with immediately preceding <u>clause (a)</u>, from any Lender that has received such Erroneous Payment (or portion thereof) (and/or from any Payment Recipient who received such Erroneous Payment (or portion thereof) on its respective behalf) (such unrecovered amount, an "*Erroneous Payment Return Deficiency*"), upon the Administrative Agent's or the Collateral Agent's notice to such Lender at any time, (i) such Lender shall be deemed to have assigned its Advances (but not its Commitments) to the Administrative Agent with respect to which such Erroneous Payment was made (the "*Erroneous Payment Impacted Class*") in an amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Advances (but not Commitments) of the Erroneous Payment Impacted Class, the "*Erroneous Payment Deficiency Assignment*") at par plus any accrued and unpaid interest (with the assignment fee to be waived by the Administrative Agent in such instance), and is hereby (together with the Borrower) deemed to execute and deliver an Assignment and Acceptance (or, to the extent applicable, an agreement incorporating an Assignment and Acceptance by reference pursuant to an electronic transmission system as to which the Administrative Agent and such parties are participants) with respect to such Erroneous Payment Deficiency Assignment, and such Lender shall deliver any promissory notes evidencing such Advances to the Borrower or the Administrative Agent, (ii) the Administrative Agent as the assignee Lender shall be deemed to acquire the Erroneous Payment Deficiency Assignment, (iii) upon such deemed acquisition, the Administrative Agent as the assignee Lender shall become a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment and the assigning Lender shall cease to be a Lender hereunder with respect to such Erroneous Payment Deficiency Assignment, excluding, for the avoidance of doubt, its obligations under the indemnification provisions of this

750499896 22723957

<u>751700376 22723957</u>

------

Agreement and its applicable Commitments which shall survive as to such assigning Lender, and (iv) the Administrative Agent may reflect in the Register its ownership interest in the Advances subject to the Erroneous Payment Deficiency Assignment. The Administrative Agent may, in its discretion, sell any Advances acquired pursuant to an Erroneous Payment Deficiency Assignment and upon receipt of the proceeds of such sale, the Erroneous Payment Return Deficiency owing by the applicable Lender shall be reduced by the net proceeds of the sale of such Advance (or portion thereof), and the Administrative Agent shall retain all other rights, remedies and claims against such Lender (and/or against any recipient that receives funds on its respective behalf). For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement. In addition, each party hereto agrees that, except to the extent that the Administrative Agent has sold an Advance (or portion thereof) acquired pursuant to an Erroneous Payment Deficiency Assignment, and irrespective of whether the Administrative Agent may be equitably subrogated, the Administrative Agent shall be contractually subrogated to all the rights and interests of the applicable Lender or Secured Party under the Facility Documents with respect to each Erroneous Payment Return Deficiency (the "*Erroneous Payment Subrogation Rights*").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The parties hereto agree that an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrower except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Collateral Agent or the Administrative Agent from the Borrower for the purpose of making such Erroneous Payment (including from amounts disbursed from the Collection Account).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)To the extent permitted by applicable law, no Payment Recipient shall 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 with respect to any demand, claim or counterclaim by the Administrative Agent and the Collateral Agent for the return of any Erroneous Payment received, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Each party's obligations, agreements and waivers under this Section 12.07 shall survive the resignation or replacement of the Administrative Agent or the Collateral Agent, any transfer of rights or obligations by, or the replacement of, a Lender, the termination of the Commitments and/or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Facility Document.

*Section 1.08.*Instructions to Collateral Agent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Agent shall be entitled to refrain from taking any action unless it has been instructed in writing by the Borrower (or the Collateral Manager on the Borrower's behalf), the Required Lenders or the Administrative Agent, as applicable, as it reasonably deems necessary. In the absence of gross negligence or willful misconduct by the Collateral Agent, the Collateral Agent shall have no liability for any action (or forbearance from action) taken pursuant to such written instructions of the Borrower, the Collateral Manager, the Required Lenders or the Administrative Agent, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Whenever the Collateral Agent is entitled or required to receive or obtain any communications or information pursuant to or as contemplated by this Agreement, it shall be entitled to receive the same in writing, in form, content and medium reasonably acceptable to it and otherwise in accordance with any applicable term of this Agreement; and whenever any report or other information is required to be produced or distributed by the Collateral Agent it

750499896 22723957

<u>751700376 22723957</u>

------

shall be in form, content and medium reasonably acceptable to it and the Borrower, and otherwise in accordance with any applicable term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)In case any reasonable question arises as to its duties hereunder, the Collateral Agent may, so long as no Event of Default has occurred and is continuing, request instructions from the Collateral Manager and may, at any time, request instructions from the Administrative Agent, and shall be entitled at all times to refrain from taking any action unless it has received instructions from the Collateral Manager or the Administrative Agent, as applicable. The Collateral Agent shall, in the absence of gross negligence or willful misconduct by the Collateral Agent, have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction of the Administrative Agent.

*Section 1.09.The Collateral Agent*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)It is expressly acknowledged and agreed that the Collateral Agent is not guaranteeing the performance of or assuming any liability for the obligations of the other parties hereto or any portion of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Collateral Agent shall not be responsible for the preparation or filing of any UCC financing statements or continuation statements or the correctness of any financing statements filed in connection with this Agreement or the validity or perfection of any lien or security interest created pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Collateral Agent shall not be liable for interest on any money received by it except as the Collateral Agent may agree in writing with the Borrower. In no event shall the Collateral Agent be liable for the selection of any investments or any losses in connection therewith (except in its capacity as obligor thereunder, if applicable), or for any failure of the relevant party to provide investment instruction to the Collateral Agent in connection with the investment of funds in or from any account set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Collateral Agent shall have no liability for any failure, inability or unwillingness on the part of the Collateral Manager, the Borrower, the Collateral Administrator or the Administrative Agent to provide accurate and complete information on a timely basis to the Collateral Agent, or otherwise on the part of any such party to comply with the terms of this Agreement, and shall have no liability for any inaccuracy or error in the performance or observance on the Collateral Agent's part of any of its duties hereunder that is caused by or results from any such inaccurate, incomplete or untimely information received by it, or other failure on the part of any such other party to comply with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Collateral Agent shall have no duty to determine or inquire into the happening or occurrence of any event or contingency, and it is agreed that its duties hereunder are purely ministerial in nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Should any controversy arise between the undersigned with respect to the Collateral held by the Collateral Agent, the Collateral Agent shall follow the instructions of the Administrative Agent on behalf of the Secured Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The powers conferred on the Collateral Agent hereunder are solely to protect its interest (on behalf of the Secured Parties) in the Collateral and shall not impose any duty on it to exercise any such powers. Except for performing the obligations expressly imposed on the Collateral Agent hereunder, the Collateral Agent shall have no duty as to any Collateral or responsibility for ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not the Collateral Agent

750499896 22723957

<u>751700376 22723957</u>

------

has or is deemed to have knowledge of such matters or taking any steps to preserve rights against prior parties or other rights pertaining to any Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)In order to comply with the laws, rules, regulations and executive orders in effect from time to time applicable to banking institutions, including those relating to the funding of terrorist activities and money laundering, the Collateral Agent may be required to obtain, verify and record certain information relating to individuals and entities which maintain a business relationship with the Collateral Agent. Accordingly, each of the parties hereto agrees to provide to the Collateral Agent upon its request from time to time such identifying information and documentation as may be available to such party in order to enable the Collateral Agent to comply with such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)If Citibank or the Collateral Agent is also acting in another capacity, including as Custodian or Securities Intermediary, the rights, protections, immunities and indemnities afforded to Citibank or the Collateral Agent pursuant to this Article XII shall also be afforded to Citibank or the Collateral Agent acting in such capacities; <u>provided</u> that such rights, protections, benefits, immunities and indemnities shall be in addition to, and not in limitation of, any rights, protections, benefits, immunities and indemnities provided in the Custodian Agreement, Account Control Agreement or any other Facility Documents to which Citibank or the Collateral Agent in such capacity is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)The Collateral Agent shall not have any obligation to determine if a Collateral Loan meets the criteria specified in the definition of Eligible Collateral Loan or if the requirements set forth in the definition of "Deliver" have been satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)The Collateral Administrator shall be entitled to the same rights, protections and indemnities as set forth with respect to the Collateral Agent in this Article XII.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Notwithstanding the foregoing, whenever reference is made in any Facility Document to any action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other direction given or action to be undertaken or to be (or not to be) suffered or omitted by the Collateral Agent or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by the Collateral Agent, it is understood that in all cases the Collateral Agent shall be acting, giving, withholding, suffering, omitting, making or otherwise undertaking and exercising the same (or shall not be undertaking and exercising the same) solely as directed in writing by the Administrative Agent acting at the instruction of the Required Lenders (or such other Lenders or percentage thereof as shall be expressly required hereunder). The Collateral Agent may at any time request instructions from the Administrative Agent with respect to any actions or approvals which, by the terms of this Agreement or any of the Facility Documents, the Collateral Agent is permitted or required to take or to grant, and the Collateral Agent shall be absolutely entitled to refrain from taking any such action or to withhold any such approval and shall not be under any liability whatsoever solely as a result thereof until it shall have received such instructions from the Administrative Agent acting at the direction of such Lenders. The Collateral Agent shall not have any liability for any failure or delay in taking any actions contemplated above as a result of a failure or delay on the part of the requisite Lenders (or the Administrative Agent on their behalf) to provide such instruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)With respect to any notices, reports, requests for waiver, consent requests or any other requests relating to corporate actions affecting any Equity Securities (together, the "<u>Bond Corporate Actions</u>"), the delivery of such shall be made solely via Citibank's corporate action notification system or such other reasonable notification method as implemented by the Collateral Agent with notification to the Collateral Manager. In order to receive such Bond Corporate Actions, the Collateral Manager may be required to register for an account with

750499896 22723957

<u>751700376 22723957</u>

------

Citibank's corporate action notification system. Neither the Collateral Agent nor the Collateral Administrator shall have no obligation or liability with respect to any Bond Corporate Actions.

**Article XIII**<br>**THE DOCUMENT CUSTODIAN**

*Section 1.01.Designation of Document Custodian.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Initial Document Custodian*. The role of Document Custodian with respect to the Collateral Loans shall be conducted by the Person designated as Document Custodian hereunder from time to time in accordance with this <u>Section 13.01</u>. Until the Administrative Agent shall give to Citibank a Document Custodian Termination Notice, Citibank is hereby appointed as, and hereby accepts such appointment and agrees to perform the duties and obligations of, Document Custodian pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Successor Document Custodian*. Upon the Document Custodian's receipt of a Document Custodian Termination Notice from the Administrative Agent of the designation of a successor Document Custodian pursuant to the provisions of <u>Section 13.05</u>, the Document Custodian agrees that it will terminate its activities as Document Custodian hereunder. Upon the resignation of the Document Custodian, the Administrative Agent shall appoint a successor Document Custodian and if it does not do so within thirty days of the Document Custodian's resignation, the Document Custodian may petition a court of competent jurisdiction for the appointment of a successor.

*Section 1.02.Duties of Document Custodian*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Appointment*. Each of the Borrower and the Administrative Agent hereby designate and appoint the Document Custodian to act as its agent and hereby authorizes the Document Custodian to take such actions on its behalf and to exercise such powers and perform such duties as are expressly granted to the Document Custodian by this Agreement. The Document Custodian hereby accepts such agency appointment to act as Document Custodian pursuant to the terms of this Agreement, until its resignation or removal as Document Custodian pursuant to the terms hereof. The Document Custodian shall have no duties hereunder except for those expressly contemplated by this Agreement to be performed by the Document Custodian. By entering into, or performing its duties under, this Agreement, the Document Custodian shall not be deemed to assume any obligations or liabilities of the Borrower or the Collateral Manager under this Agreement, and nothing herein contained shall be deemed to release, terminate, discharge, limit, reduce, diminish, modify, amend or otherwise alter in any respect the duties, obligations or liabilities of the Borrower or the Collateral Manager under or pursuant to this Agreement or any other Facility Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Duties*. On the Closing Date, and until its removal pursuant to <u>Section 13.05</u>, each of the Document Custodian and the Collateral Administrator, as applicable, shall perform, on behalf of the Administrative Agent and the other Secured Parties, the following duties and obligations:

&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)The Document Custodian shall take and retain custody of, with respect to the Related Documents, any original promissory notes or original assignment agreements, and the Collateral Administrator shall take and retain custody of electronic copies of the Related Documents (including any copies of promissory notes or assignment agreements) and the Loan Checklist, in each case, delivered by the Borrower pursuant to <u>Section 7.05</u> in accordance with the terms and conditions of this Agreement, in each case, for the benefit of the Secured Parties and subject to the Lien thereon in favor of the Collateral

750499896 22723957

<u>751700376 22723957</u>

------

Agent, for the benefit of the Secured Parties. For the avoidance of doubt, any items in the Related Documents or other items of Collateral that are delivered in electronic form shall be delivered solely to the Collateral Administrator. Within five Business Days of its receipt of the Related Documents (including, in the case of promissory notes and assignment agreements, electronic copies of such items) and an electronic copy of the Loan Checklist, the Collateral Administrator shall review the Related Documents delivered to it to confirm that, on their face, each item listed on the Loan Checklist required to be delivered to the Collateral Administrator pursuant to this Agreement has been delivered to the Collateral Administrator (the *"Review Criteria"*). In order to facilitate the foregoing review by the Collateral Administrator, in connection with each delivery of Related Documents hereunder to the Collateral Administrator, the Collateral Manager shall provide to the Collateral Administrator an electronic file (in EXCEL or a comparable format acceptable to the Collateral Administrator) of the related Loan Checklist that contains a list of all Related Documents. Notwithstanding anything herein to the contrary, the Collateral Administrator's obligation to review the Related Documents shall be limited to reviewing such Related Documents based on the information provided on the Loan Checklist and the Collateral Administrator shall be under no duty or obligation to inspect, review or examine any such documents, instruments or certificates to independently determine that they are genuine, enforceable, duly authorized or appropriate for the represented purpose, any assignment or endorsement is in proper form, or any document is other than what it purports to be on its face. If, at the conclusion of such review, the Collateral Administrator shall determine that any Review Criteria is not satisfied, the Collateral Administrator shall within one Business Day notify the Collateral Manager and the Administrative Agent (which may be via email) of such determination and provide the Administrative Agent, the Collateral Manager and the Borrower with a list of the non-complying Collateral Loans and the applicable Review Criteria that they fail to satisfy. The Collateral Manager shall have ten Business Days to correct any non-compliance with any Review Criteria. In addition, if requested in writing in the form of <u>Exhibit E</u> by the Collateral Manager and approved by the Administrative Agent within ten Business Days of the Collateral Administrator's notification to the Collateral Manager and the Administrative Agent of its review of the Review Criteria, the Collateral Administrator shall return the Related Documents for any Collateral Loan which fails to satisfy a Review Criteria to the Borrower. Other than the foregoing, the Document Custodian and the Collateral Administrator shall not have any responsibility for reviewing any Related Documents.

&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)In taking and retaining custody of the Related Documents, each of the Document Custodian and the Collateral Administrator shall be deemed to be acting as the agent of the Secured Parties; *provided* that neither the Document Custodian nor the Collateral Administrator makes any representations as to the existence, perfection or priority of any Lien on the Related Documents or the instruments therein; and *provided, further,* that each of the Document Custodian's and the Collateral Administrator's duties as agent shall be limited to those expressly contemplated herein and no implied obligations or responsibilities shall be read into this Agreement against or on the part of the Document

Custodian or the Collateral Administrator, as applicable.

&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)All original promissory notes and assignment agreements actually delivered to the Document Custodian shall be kept at 399 Park Avenue, Level "C" - Securities Vault, New York, NY 10022, Attention: Mr. Keith Whyte, MSCC Funding I, LLC, telephone: (212) 559-1207, or at such other office as shall be specified to the Administrative Agent and the Collateral Manager by the Document Custodian. All such documents delivered to the Document Custodian must be sent by trackable courier service (e.g. UPS or Federal Express). All original promissory notes and assignment

750499896 22723957

<u>751700376 22723957</u>

------

agreements shall be placed together with an appropriate identifying label and maintained in such a manner so as to permit retrieval and access. The Document Custodian shall segregate the original promissory notes and assignment agreements on its inventory system and will not commingle the physical promissory notes and assignment agreements with any other files of the Document Custodian.

&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)[Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)[Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Each of the Document Custodian and the Collateral Administrator may assume the genuineness of any Related Document it may receive and the genuineness and due authority of any signatures appearing thereon, and shall be entitled to assume that each such Related Document it may receive is what it purports to be. If an original "security" or "instrument" as defined in Section 8-102 and Section 9-102(a)(47) of the UCC, respectively, is or shall be or become available with respect to any Collateral Loan to be held by the Document Custodian under this Agreement, it shall be the sole responsibility of the Borrower to make or cause delivery thereof to the Document Custodian, and the Document Custodian shall not be under any obligation at any time to determine whether any such original security or instrument has been or is required to be issued or made available in respect of any Collateral Loan or to compel or cause delivery thereof to the Document Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)With respect to each Related Document which has been or will be Delivered to the Document Custodian or the Collateral Administrator, as applicable, the Document Custodian is acting exclusively as the custodian of the Secured Parties, and has no instructions to hold any Related Document for the benefit of any Person other than the Secured Parties and undertakes to perform such duties and only such duties as are specifically set forth in this Agreement. In so taking and retaining custody of any Related Documents, the Collateral Administrator shall be deemed to be acting for the purpose of perfecting the Collateral Agent's security interest therein under the UCC. Except upon compliance with the provisions of Section 13.04, no Related Document shall be released from the possession of the Document Custodian or the Collateral Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Each of the Document Custodian and the Collateral Administrator shall accept only written instructions of a Responsible Officer of the Borrower or the Collateral Manager concerning the use, handling and disposition of any Related Documents Delivered to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)With respect to the Related Documents, (i) any original promissory notes or original assignment agreements shall be delivered to the Document Custodian and (ii) all other documents shall be delivered to the Collateral Administrator solely in electronic form, in each case for safekeeping pursuant to the terms of this Agreement. Except as explicitly set forth in this Agreement, neither the Document Custodian nor the Collateral Administrator shall have any obligation to review the Related Documents delivered to it. Notwithstanding any language to the contrary herein, except as expressly set forth herein, neither the Document Custodian nor the Collateral Administrator shall make no representations as to, and neither shall not be responsible to verify, (i) the validity, legality, ownership, title, perfection, priority, enforceability, due authorization, recordability, sufficiency for any purpose, or genuineness of any of the Related Documents, (ii) whether the text of any assignment or endorsement is in proper or recordable form, (iii) whether any document has been recorded in accordance with the requirements of any applicable jurisdiction, to independently determine that any document has actually been filed or recorded in the appropriate office (iv) that any

750499896 22723957

<u>751700376 22723957</u>

------

document is other than what it purports to be on its face or (v) the collectibility, insurability, effectiveness or suitability of any such Collateral Obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)Each of the Document Custodian and the Collateral Administrator agree that, with respect to any Related Document at any time or times in its possession or held in its name, the Document Custodian or the Collateral Administrator, as applicable, shall be the agent and custodian of the Collateral Agent, for the benefit of the Secured Parties, for purposes of perfecting (to the extent not otherwise perfected) the Collateral Agent's security interest in the Collateral and for the purpose of ensuring that such security interest is entitled to first priority status under the UCC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)If, in performing its duties under this Agreement, the Document Custodian is required to decide between alternative courses of action, the Document Custodian may request written instructions from the Borrower or the Collateral Manager as to the course of action desired by it. If the Document Custodian does not receive such instructions within five Business Days after it has requested them, the Document Custodian may, but shall be under no duty to, take or refrain from taking any such courses of action. The Document Custodian shall act in accordance with instructions received after such five-Business Day period except to the extent it has already taken, or committed itself to take, action inconsistent with such instructions. The Document Custodian shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance with such advice.

*Section 1.03.Merger or Consolidation*. Any Person (i) into which the Document Custodian may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Document Custodian shall be a party, or (iii) that may succeed to the properties and assets of the Document Custodian substantially as a whole, which Person in any of the foregoing cases shall be the successor to the Document Custodian under this Agreement without further act of any of the parties to this Agreement.

*Section 1.04.Document Custodian Compensation*. As compensation for its Document Custodian activities hereunder, the Document Custodian shall be entitled to fees pursuant to the Collateral Agent and Collateral Administrator Fee Letter. The Document Custodian's entitlement to receive the fees under the Collateral Agent and Collateral Administrator Fee Letter shall cease on the earlier to occur of: (i) its removal as Document Custodian pursuant to <u>Section 13.05</u> or (ii) the termination of this Agreement. Upon termination of this Agreement or earlier resignation or removal of the Document Custodian, the Borrower shall pay to the Document Custodian such compensation, and shall likewise reimburse the Document Custodian for its costs, expenses and disbursements, as may be due as of the date of such termination, resignation or removal, as the case may be. All indemnifications in favor of the Document Custodian under this Agreement shall survive the termination of this Agreement, or any resignation or removal of the Document Custodian. The Borrower agrees to pay or reimburse to the Document Custodian upon its request from time to time all costs, disbursements, advances, and expenses (including reasonable fees and expenses of legal counsel) incurred, in connection with the preparation or execution of this Agreement, or in connection with the transactions contemplated hereby or performance by the Document Custodian of its duties and services under this Agreement (including costs and expenses of any action deemed necessary by the Document Custodian to collect any amounts owing to it under this Agreement) in accordance with the Priority of Payments.

*Section 1.05.Document Custodian Removal*. The Document Custodian may be removed, with or without cause, by the Administrative Agent, with the consent of the Borrower (if such removal is without cause) so long as no Event of Default has occurred and is continuing,

750499896 22723957

<u>751700376 22723957</u>

------

by at least 30 days' notice given in writing to the Document Custodian (the *"Document Custodian Termination Notice"*); *provided* that notwithstanding its receipt of a Document Custodian Termination Notice, the Document Custodian shall continue to act in such capacity (and shall continue to be entitled to receive fees) until a successor Document Custodian has been appointed, has agreed to act as Document Custodian hereunder, and has received all Related Documents held by the previous Document Custodian. If a successor Document Custodian is not appointed within thirty days of the Document Custodian's receipt of notice of removal, the Document Custodian may petition a court of competent jurisdiction for the appointment of a successor and shall be indemnified pursuant to Section 13.06(p) for the reasonable costs and expenses thereof.

*Section 1.06.Limitation on Liability*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Document Custodian may conclusively rely on and shall be fully protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or other document delivered to it and that in good faith it reasonably believes to be genuine and that has been signed by the proper Person. The Document Custodian may rely conclusively on and shall be fully protected in acting upon the written instructions of any Responsible Officer of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Document Custodian may consult counsel satisfactory to it and the advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Document Custodian 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, notwithstanding anything to the contrary contained herein, in the case of its willful misconduct or grossly negligent performance or omission of its duties and in the case of its grossly negligent performance of its duties in taking and retaining custody of the Related Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Document Custodian makes no warranty or representation and shall have no responsibility 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 Facility Documents, and will not be required to and will not make any representations as to the validity or value of any of the Collateral. The Document Custodian shall not be obligated to take any legal action hereunder that might in its judgment involve any expense or liability unless it has been furnished with an indemnity reasonably satisfactory to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Document Custodian shall have no duties or responsibilities except such duties and responsibilities as are specifically set forth in this Agreement and no covenants or obligations shall be implied in this Agreement against the Document Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Document Custodian shall not be required to expend or risk its own funds in the performance of its duties hereunder or take any action that could in its judgment cause it to incur any cost, expenses or liability, unless it is provided indemnity acceptable to it against any such expenditure, risk, costs, expense or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)It is expressly agreed and acknowledged that the Document Custodian is not guaranteeing performance of or assuming any liability for the obligations of the other parties hereto or any parties to the Collateral.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Without prejudice to the generality of the foregoing, the Document Custodian shall be without liability to the Borrower, Collateral Manager, the Administrative Agent or any other Person for any damage or loss resulting from or caused by events or circumstances beyond the Document Custodian's reasonable control, including, but not limited to, nationalization, expropriation, currency restrictions, the interruption, disruption or suspension of the normal procedures and practices of any securities market, power, mechanical, communications or other technological failures or interruptions, computer viruses or the like, fires, floods, earthquakes or other natural disasters, civil and military disturbance, acts of war or terrorism, riots, revolution, acts of God, work stoppages, strikes, national disasters of any kind, or other similar events or acts; errors by the Borrower, the Collateral Manager, Collateral Administrator or the Administrative Agent (including any Responsible Officer of any thereof) in its instructions to the Document Custodian; or changes in Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In the event that (i) the Borrower, Collateral Agent, the Collateral Administrator, the Collateral Manager, the Administrative Agent, Lenders or Document Custodian shall be served by a third party with any type of levy, attachment, writ or court order with respect to any Collateral Loan or Related Documents or (ii) a third party shall institute any court proceeding by which any Collateral Loan or Related Document shall be required to be delivered otherwise than in accordance with the provisions of this Agreement, the Person receiving such service shall promptly deliver or cause to be delivered to the other parties to this Agreement copies of all court papers, orders, documents and other materials concerning such proceedings. The Document Custodian or the Collateral Administrator, as applicable, shall, to the extent permitted by Law, continue to hold and maintain all the Related Documents that are the subject of such proceedings pending a final, non-appealable order of a court of competent jurisdiction permitting or directing disposition thereof. Upon final determination of such court, the Document Custodian or the Collateral Administrator, as applicable, shall dispose of such Related Documents as directed by the Administrative Agent in writing, which shall give a direction consistent with such determination. Expenses of the Document Custodian and the Collateral Administrator incurred as a result of such proceedings shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)In addition to, and without limiting, the rights, protections, indemnities and immunities afforded to the Document Custodian herein, the Document Custodian shall have the same rights, protections, indemnities and immunities as are offered the Collateral Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)In no event shall the Document Custodian be liable for special, indirect, punitive or consequential losses or damages of any kind whatsoever (including but not limited to lost profits) even if the Document Custodian has been advised of the likelihood of such damages and regardless of the form of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Notwithstanding any provision to the contrary elsewhere in the Facility Documents, neither the Document Custodian nor the Collateral Administrator shall have any fiduciary relationship with any party hereto or any Secured Party in its capacity as such, and no implied covenants, functions, obligations or responsibilities shall be read into this Agreement, the other Facility Documents or otherwise exist against the Document Custodian or the Collateral Administrator. Without limiting the generality of the foregoing, it is hereby expressly agreed and stipulated by the other parties hereto that neither the Document Custodian nor the Collateral Administrator shall be required to exercise any discretion hereunder and shall have no investment or management responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)In case any reasonable question arises as to its duties hereunder, the Document Custodian may, except during the continuance of an Event of Default or after the Final Maturity Date, request instructions from the Collateral Manager and may, during the continuance of an Event of Default or after the Final Maturity Date, request instructions from the Administrative

750499896 22723957

<u>751700376 22723957</u>

------

Agent, and shall be entitled at all times to refrain from taking any action unless it has received instructions from the Collateral Manager or the Administrative Agent, as applicable. The Document Custodian shall in all events have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction of the Administrative Agent, the Collateral Manager or the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Document Custodian shall have no responsibility and shall have no liability for (i) preparing, recording, filing, re-recording or re-filing any financing statement, continuation statement, document, instrument or other notice in any public office at any time or times, (ii) the correctness of any such financing statement, continuation statement, document or instrument or other such notice, (iii) taking any action to perfect or maintain the perfection of any security interest granted to it hereunder or otherwise or (iv) the validity or perfection of any such lien or security interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)The parties acknowledge and agree that the Document Custodian is not expecting to receive a significant number of original Related Documents. In the event the Document Custodian receives an amount in excess of its expectation, as determined in its sole discretion, the Document Custodian may either appoint a sub-agent custodian, or require the Borrower to enter into a document custody agreement directly with a separate custodian, in respect of such original Related Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)The Borrower shall, and hereby agrees to, reimburse, indemnify and hold harmless the Document Custodian and its affiliates, directors, officers, shareholders, agents and employees for and from any and all Liabilities in respect of, or arising from any acts or omissions performed or omitted by the Document Custodian, its affiliates, directors, officers, shareholders, agents or employees pursuant to or in connection with the terms of this Agreement, or in the performance or observance of its duties or obligations under this Agreement; provided the same are in good faith and without willful misfeasance, fraud and/or gross negligence on the part of the Document Custodian or without reckless disregard of its duties hereunder. The obligations of the Borrower under this Section 13.06(p) shall survive the termination of this Agreement and any earlier resignation or removal of the Document Custodian.

*Section 1.07.Resignation of the Document Custodian*. The Document Custodian shall not resign from the obligations and duties hereby imposed on it except upon (a) at least 90 days' written notice to the Borrower, the Collateral Manager, the Administrative Agent and each Lender, or (b) the Document Custodian's determination that (i) the performance of its duties hereunder is or becomes impermissible under Applicable Law and (ii) there is no reasonable action that the Document Custodian could take to make the performance of its duties hereunder permissible under Applicable Law. No such resignation shall become effective until a successor Document Custodian shall have assumed the responsibilities and obligations of the Document Custodian hereunder subject to <u>Section 13.01(b)</u>.

*Section 1.08.Release of Related Documents*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Release for Servicing.* From time to time and as appropriate for the enforcement or servicing of any of the Collateral, the Document Custodian and the Collateral Administrator are hereby authorized (unless and until such authorization is revoked by the Administrative Agent) to, and shall, upon written receipt from the Collateral Manager of a request for release of documents and receipt in the form annexed hereto as <u>Exhibit E</u>, release to the Collateral Manager within two Business Days of receipt of such request, the applicable Related Documents delivered to it or the documents set forth in such request and receipt to the Collateral Manager. All documents so released to the Collateral Manager shall be held by the Collateral Manager in trust for the benefit of the Administrative Agent in accordance with the terms of this Agreement. The Collateral Manager shall return to the Document Custodian or the Collateral Administrator, as

750499896 22723957

<u>751700376 22723957</u>

------

applicable, the Related Documents held by such party or other such documents (i) promptly upon the request of the Administrative Agent, or (ii) when the Collateral Manager's need therefor in connection with such enforcement or servicing no longer exists, unless the Collateral Loan shall be liquidated or sold, in which case, upon receipt of an additional request for release of documents and receipt certifying such liquidation or sale from the Collateral Manager to the Document Custodian and the Collateral Administrator, as applicable, in the form annexed hereto as <u>Exhibit E</u>, the Collateral Manager's request and receipt submitted pursuant to the first sentence of this subsection shall be released by the Document Custodian and the Collateral Administrator, as applicable, to the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Release for Payment.* Upon receipt by the Document Custodian or the Collateral Administrator, as applicable, of the Collateral Manager's request for release of documents and receipt in the form annexed hereto as <u>Exhibit E</u> (which certification shall include a statement to the effect that all amounts received in connection with such payment or repurchase have been credited to the Collection Account as provided in this Agreement), the Document Custodian or the Collateral Administrator, as applicable, shall promptly release the applicable Related Documents to the Collateral Manager.

*Section 1.09.Return of Related Documents*. The Borrower may, with the prior written consent of the Administrative Agent (such consent not to be unreasonably withheld), require that the Document Custodian or the Collateral Administrator, as applicable, return each Related Document (as applicable) held by it, respectively (a) delivered to the Document Custodian or the Collateral Administrator, as applicable, in error, (b) as to which the Lien on the underlying assets securing such related Collateral Loan has been so released pursuant to <u>Section 7.02</u>, (c) that has been the subject of a discretionary sale or any sale of loan pursuant to <u>Section 10.01</u> or substitution pursuant to <u>Section 10.03</u> or (d) that is required to be redelivered to the Borrower in connection with the termination of this Agreement, in each case by submitting to the Document Custodian or the Collateral Administrator, as applicable, and the Administrative Agent a written request in the form annexed hereto as <u>Exhibit E</u> (signed by both the Borrower and the Administrative Agent) specifying the Collateral to be so returned and reciting that the conditions to such release have been met (and specifying the Section or Sections of this Agreement being relied upon for such release). The Document Custodian or the Collateral Administrator, as applicable, shall upon its receipt of each such request for return executed by the Borrower and the Administrative Agent promptly, but in any event within two Business Days, return the Related Documents so requested to the Borrower.

*Section 1.10.Access to Certain Documentation and Information Regarding the Collateral; Audits*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Manager, the Collateral Administrator and the Document Custodian, as applicable, shall provide to the Administrative Agent access to the Related Documents and all other documentation regarding the Collateral in the possession of or under the control of the Document Custodian or the Collateral Administrator, as applicable, including in such cases where the Administrative Agent is required in connection with the enforcement of the rights or interests of the Secured Parties, or by Applicable Law, to review such documentation, such access being afforded without charge (but, with respect to the Document Custodian and the Collateral Administrator, at the expense of the Borrower) but only (i) upon two Business Days' prior written request, (ii) during normal business hours and (iii) subject to the Collateral Manager's, the Collateral Administrator's and Document Custodian's normal security and confidentiality procedures; *provided* that the Administrative Agent may, and shall upon request of any Lender, permit each Lender to be included on any such review, and shall use reasonably commercial efforts to schedule any review on a day when Lenders desiring to participate in such review may be included. From time to time at the discretion of the Administrative Agent, the Administrative Agent may review the Collateral Manager's collection and administration of the

750499896 22723957

<u>751700376 22723957</u>

------

Collateral in order to assess compliance by the Collateral Manager with <u>Article XI</u> and may conduct an audit of the Collateral, and Related Documents in conjunction with such a review. Such review shall be reasonable in scope and shall be completed in a reasonable period of time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Without limiting the foregoing provisions of <u>Section 13.10(a)</u>, from time to time on request of the Administrative Agent and upon reasonable prior written notice to the Document Custodian or the Collateral Administrator, as applicable, each of the Document Custodian and the Collateral Administrator shall permit certified public accountants or other independent auditors acceptable to the Administrative Agent during normal business hours to conduct a review of the Related Documents held by such party and all other documentation regarding the Collateral in the possession of or under the control of the Document Custodian or the Collateral Administrator, as applicable. Up to two such reviews per fiscal year shall be at the expense of the Borrower and additional reviews in a fiscal year shall be at the expense of the requesting Lender(s); *provided* that, after the occurrence and during the continuance of an Event of Default, any such reviews, regardless of frequency, shall be at the expense of the Borrower.

*Section 1.11.Representations and Warranties of the Document Custodian*. The Document Custodian represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Organization; Power and Authority.* It is a duly organized and validly existing national banking association in good standing under the Laws of the United States. It has full corporate power, authority and legal right to execute, deliver and perform its obligations as Document Custodian under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Due Authorization.* The execution and delivery of this Agreement and the consummation of the transactions provided for herein have been duly authorized by all necessary association action on its part, either in its individual capacity or as Document Custodian, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*No Conflict.* The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with, result in any breach of its articles of incorporation or bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*No Violation.* The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with or violate, in any material respect, any Applicable Law as to the Document Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*All Consents Required.* All approvals, authorizations, consents, orders or other actions of any Governmental Authority applicable to the Document Custodian, required in connection with the execution and delivery of this Agreement, the performance by the Document Custodian of the transactions contemplated hereby and the fulfillment by the Document Custodian of the terms hereof have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Validity.* The Agreement constitutes the legal, valid and binding obligation of the Document Custodian, enforceable against the Document Custodian in accordance with its terms, except as such enforceability may be limited by applicable Bankruptcy Code and general principles of equity (whether considered in a suit at law or in equity).

750499896 22723957

<u>751700376 22723957</u>

------

**Article XIV**<br>**THE CUSTODIAN**

*Section 1.01.Designation of Custodian.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Initial Custodian*. The role of Custodian with respect to the Collateral Loans shall be conducted by the Person designated as Custodian hereunder from time to time in accordance with this <u>Section 14.01</u>. Until the Administrative Agent shall give to Citibank a Custodian Termination Notice, Citibank is hereby appointed as, and hereby accepts such appointment and agrees to perform the duties and obligations of, Custodian pursuant to the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Successor Custodian*. Upon the Custodian's receipt of a Custodian Termination Notice from the Administrative Agent of the designation of a successor Custodian pursuant to the provisions of <u>Section 14.05</u>, the Custodian agrees that it will terminate its activities as Custodian hereunder. Upon the resignation of the Custodian, the Administrative Agent shall appoint a successor Custodian and if it does not do so within thirty days of the Custodian's resignation, the Custodian may petition a court of competent jurisdiction for the appointment of a successor.

*Section 1.02.Duties of Custodian*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Appointment*. Each of the Borrower and the Administrative Agent hereby designate and appoint the Custodian to act as its agent and hereby authorizes the Custodian to take such actions on its behalf and to exercise such powers and perform such duties as are expressly granted to the Custodian by this Agreement. The Custodian hereby accepts such agency appointment to act as Custodian pursuant to the terms of this Agreement, until its resignation or removal as Custodian pursuant to the terms hereof. The Custodian shall have no duties hereunder except for those expressly contemplated by this Agreement to be performed by the Custodian. By entering into, or performing its duties under, this Agreement, the Custodian shall not be deemed to assume any obligations or liabilities of the Borrower or the Collateral Manager under this Agreement, and nothing herein contained shall be deemed to release, terminate, discharge, limit, reduce, diminish, modify, amend or otherwise alter in any respect the duties, obligations or liabilities of the Borrower or the Collateral Manager under or pursuant to this Agreement or any other Facility Document.

*Section 1.03.Merger or Consolidation*. Any Person (i) into which the Custodian may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Custodian shall be a party, or (iii) that may succeed to the properties and assets of the Custodian substantially as a whole, which Person in any of the foregoing cases shall be the successor to the Custodian under this Agreement without further act of any of the parties to this Agreement.

*Section 1.04.Custodian Compensation*. As compensation for its Custodian activities hereunder, the Custodian shall be entitled to fees pursuant to the Collateral Agent and Collateral Administrator Fee Letter. The Custodian's entitlement to receive the fees under the Collateral Agent and Collateral Administrator Fee Letter shall cease on the earlier to occur of: (i) its removal as Custodian pursuant to <u>Section 14.05</u> or (ii) the termination of this Agreement. Upon termination of this Agreement or earlier resignation or removal of the Custodian, the Borrower shall pay to the Custodian such compensation, and shall likewise reimburse the Custodian for its costs, expenses and disbursements, as may be due as of the date of such termination, resignation or removal, as the case may be. All indemnifications in favor of the Custodian under this Agreement shall survive the termination of this Agreement, or any resignation or removal of the Custodian. The Borrower agrees to pay or reimburse to the Custodian upon its request from time to time all costs, disbursements, advances, and expenses (including reasonable fees and expenses

750499896 22723957

<u>751700376 22723957</u>

------

of legal counsel) incurred, in connection with the preparation or execution of this Agreement, or in connection with the transactions contemplated hereby or performance by the Custodian of its duties and services under this Agreement (including costs and expenses of any action deemed necessary by the Custodian to collect any amounts owing to it under this Agreement) in accordance with the Priority of Payments.

*Section 1.05.Custodian Removal*. The Custodian may be removed, with or without cause, by the Administrative Agent, with the consent of the Borrower (if such removal is without cause) so long as no Event of Default has occurred and is continuing, by at least 30 days' notice given in writing to the Custodian (the *"Custodian Termination Notice"*); *provided* that notwithstanding its receipt of a Custodian Termination Notice, the Custodian shall continue to act in such capacity (and shall continue to be entitled to receive fees) until a successor Custodian has been appointed, has agreed to act as Custodian hereunder, and has received all Related Documents held by the previous Custodian. If a successor Custodian is not appointed within thirty days of the Custodian's receipt of notice of removal, the Custodian may petition a court of competent jurisdiction for the appointment of a successor and shall be indemnified pursuant to Section 14.06(o) for the reasonable costs and expenses thereof.

*Section 1.06.Limitation on Liability*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Custodian may conclusively rely on and shall be fully protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or other document delivered to it and that in good faith it reasonably believes to be genuine and that has been signed by the proper Person. The Custodian may rely conclusively on and shall be fully protected in acting upon the written instructions of any designated officer of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Custodian may consult counsel satisfactory to it and the advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Custodian 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, notwithstanding anything to the contrary contained herein, in the case of its willful misconduct or grossly negligent performance or omission of its duties and in the case of its grossly negligent performance of its duties in taking and retaining custody of the Related Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Custodian makes no warranty or representation and shall have no responsibility 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 Facility Documents, and will not be required to and will not make any representations as to the validity or value of any of the Collateral. The Custodian shall not be obligated to take any legal action hereunder that might in its judgment involve any expense or liability unless it has been furnished with an indemnity reasonably satisfactory to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Custodian shall have no duties or responsibilities except such duties and responsibilities as are specifically set forth in this Agreement and no covenants or obligations shall be implied in this Agreement against the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Custodian shall not be required to expend or risk its own funds in the performance of its duties hereunder or take any action that could in its judgment cause it to incur any cost, expenses or liability, unless it is provided indemnity acceptable to it against any such expenditure, risk, costs, expense or liability.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)It is expressly agreed and acknowledged that the Custodian is not guaranteeing performance of or assuming any liability for the obligations of the other parties hereto or any parties to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Without prejudice to the generality of the foregoing, the Custodian shall be without liability to the Borrower, Collateral Manager, the Administrative Agent or any other Person for any damage or loss resulting from or caused by events or circumstances beyond the Custodian's reasonable control, including nationalization, expropriation, currency restrictions, the interruption, disruption or suspension of the normal procedures and practices of any securities market, power, mechanical, communications or other technological failures or interruptions, computer viruses or the like, fires, floods, earthquakes or other natural disasters, civil and military disturbance, acts of war or terrorism, riots, revolution, acts of God, work stoppages, strikes, national disasters of any kind, or other similar events or acts; errors by the Borrower, the Collateral Manager, Collateral Administrator or the Administrative Agent (including any Responsible Officer of any thereof) in its instructions to the Custodian; or changes in Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)In the event that (i) the Borrower, Collateral Agent, the Collateral Administrator, the Collateral Manager, the Administrative Agent, Lenders or Custodian shall be served by a third party with any type of levy, attachment, writ or court order with respect to any Collateral Loan or Related Documents or (ii) a third party shall institute any court proceeding by which any Collateral Loan or Related Document shall be required to be delivered otherwise than in accordance with the provisions of this Agreement, the Person receiving such service shall promptly deliver or cause to be delivered to the other parties to this Agreement copies of all court papers, orders, documents and other materials concerning such proceedings. The Custodian shall, to the extent permitted by Law, continue to hold and maintain all the Related Documents that are the subject of such proceedings pending a final, non-appealable order of a court of competent jurisdiction permitting or directing disposition thereof. Upon final determination of such court, the Custodian shall dispose of such Related Documents as directed by Administrative Agent in writing, which shall give a direction consistent with such determination. Expenses of the Custodian incurred as a result of such proceedings shall be borne by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)In addition to, and without limiting, the rights, protections, indemnities and immunities afforded to the Custodian herein, the Custodian shall have the same rights, protections, indemnities and immunities as are offered the Collateral Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)In no event shall the Custodian be liable for special, exemplary, indirect, punitive or consequential losses or damages of any kind whatsoever (including but not limited to lost profits) even if the Custodian has been advised of the likelihood of such damages and regardless of the form of such action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Notwithstanding any provision to the contrary elsewhere in the Facility Documents, the Custodian shall not have any fiduciary relationship with any party hereto or any Secured Party in its capacity as such, and no implied covenants, functions, obligations or responsibilities shall be read into this Agreement, the other Facility Documents or otherwise exist against the Custodian. Without limiting the generality of the foregoing, it is hereby expressly agreed and stipulated by the other parties hereto that the Custodian shall not be required to exercise any discretion hereunder and shall have no investment or management responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)In case any reasonable question arises as to its duties hereunder, the Custodian may, except during the continuance of an Event of Default or after the Final Maturity Date, request instructions from the Collateral Manager and may, during the continuance of an Event of

750499896 22723957

<u>751700376 22723957</u>

------

Default or after the Final Maturity Date, request instructions from the Administrative Agent, and shall be entitled at all times to refrain from taking any action unless it has received instructions from the Collateral Manager or the Administrative Agent, as applicable. The Custodian shall in all events have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction of the Administrative Agent, the Collateral Manager or the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Custodian shall have no responsibility and shall have no liability for (i) preparing, recording, filing, re-recording or re-filing any financing statement, continuation statement, document, instrument or other notice in any public office at any time or times, (ii) the correctness of any such financing statement, continuation statement, document or instrument or other such notice, (iii) taking any action to perfect or maintain the perfection of any security interest granted to it hereunder or otherwise or (iv) the validity or perfection of any such lien or security interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)The Borrower shall, and hereby agrees to, reimburse, indemnify and hold harmless the Custodian and its affiliates, directors, officers, shareholders, agents and employees for and from any and all Liabilities in respect of, or arising from any acts or omissions performed or omitted by the Custodian, its affiliates, directors, officers, shareholders, agents or employees pursuant to or in connection with the terms of this Agreement, or in the performance or observance of its duties or obligations under this Agreement; provided the same are in good faith and without willful misfeasance, fraud and/or gross negligence on the part of the Custodian or without reckless disregard of its duties hereunder. The obligations of the Borrower under this Section 14.06(0) shall survive the termination of this Agreement and any earlier resignation or removal of the Custodian.

*Section 1.07.Resignation of the Custodian*. The Custodian shall not resign from the obligations and duties hereby imposed on it except upon (a) at least 90 days' written notice to the Borrower, the Collateral Manager, the Administrative Agent and each Lender, or (b) the Custodian's determination that (i) the performance of its duties hereunder is or becomes impermissible under Applicable Law and (ii) there is no reasonable action that the Custodian could take to make the performance of its duties hereunder permissible under Applicable Law. No such resignation shall become effective until a successor Custodian shall have assumed the responsibilities and obligations of the Custodian hereunder subject to <u>Section 14.01(b)</u>.

*Section 1.08.Access to Certain Documentation and Information Regarding the Collateral; Audits*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Manager and the Custodian shall provide to the Administrative Agent access to the Related Documents and all other documentation regarding the Collateral in the possession of or under the control of the Custodian including in such cases where the Administrative Agent is required in connection with the enforcement of the rights or interests of the Secured Parties, or by Applicable Law, to review such documentation, such access being afforded without charge (but, with respect to the Custodian, at the expense of the Borrower) but only (i) upon two Business Days' prior written request, (ii) during normal business hours and (iii) subject to the Collateral Manager's and Custodian's normal security and confidentiality procedures; *provided* that the Administrative Agent may, and shall upon request of any Lender, permit each Lender to be included on any such review, and shall use reasonably commercial efforts to schedule any review on a day when Lenders desiring to participate in such review may be included. From time to time at the discretion of the Administrative Agent, the Administrative Agent may review the Collateral Manager's collection and administration of the Collateral in order to assess compliance by the Collateral Manager with <u>Article XI</u> and may conduct an audit of the Collateral, and Related Documents in conjunction with such a review. Such review shall be reasonable in scope and shall be completed in a reasonable period of time.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Without limiting the foregoing provisions of <u>Section 14.08(a)</u>, from time to time on request of the Administrative Agent and upon reasonable prior written notice to the Custodian, the Custodian shall permit certified public accountants or other independent auditors acceptable to the Administrative Agent during normal business hours to conduct a review of the Related Documents and all other documentation regarding the Collateral in the possession of or under the control of the Custodian. Up to two such reviews per fiscal year shall be at the expense of the Borrower and additional reviews in a fiscal year shall be at the expense of the requesting Lender(s); *provided* that, after the occurrence and during the continuance of an Event of Default, any such reviews, regardless of frequency, shall be at the expense of the Borrower.

*Section 1.09.Representations and Warranties of the Custodian*. The Custodian represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*Organization; Power and Authority.* It is a duly organized and validly existing national banking association in good standing under the Laws of the United States. It has full corporate power, authority and legal right to execute, deliver and perform its obligations as Custodian under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*Due Authorization.* The execution and delivery of this Agreement and the consummation of the transactions provided for herein have been duly authorized by all necessary association action on its part, either in its individual capacity or as Custodian, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)*No Conflict.* The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with, result in any breach of its articles of incorporation or bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*No Violation.* The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with or violate, in any material respect, any Applicable Law as to the Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*All Consents Required.* All approvals, authorizations, consents, orders or other actions of any Governmental Authority applicable to the Custodian, required in connection with the execution and delivery of this Agreement, the performance by the Custodian of the transactions contemplated hereby and the fulfillment by the Custodian of the terms hereof have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*Validity.* The Agreement constitutes the legal, valid and binding obligation of the Custodian, enforceable against the Custodian in accordance with its terms, except as such enforceability may be limited by applicable Bankruptcy Code and general principles of equity (whether considered in a suit at law or in equity).

**Article XV**<br>**THE COLLATERAL ADMINISTRATOR**

*Section 1.01.Powers and Duties of Collateral Administrator*. (a) Virtus Group, LP shall act as Collateral Administrator pursuant to the terms of this Agreement, until Virtus Group, LP's resignation or removal as Collateral Administrator pursuant to <u>Section 15.04</u> hereof. In such capacity, the Collateral Administrator shall assist the Borrower and the Collateral Manager by providing to the Borrower and the Collateral Manager (and, where applicable, the Borrower's Independent Accountants) certain reports, calculations and other data (as may be mutually agreed upon by the parties hereto), based upon information and data received from the Borrower and/or Collateral Manager, which reports, calculations and other data the Borrower or the Collateral Manager on its behalf, and/or the Collateral Administrator is required to prepare and deliver (or

750499896 22723957

<u>751700376 22723957</u>

------

which are necessary to be performed in order that certain reports and calculations can be performed as required) under <u>Section 8.06</u>. Virtus Group, LP's duties and authority to act as Collateral Administrator hereunder are limited to the duties and authority specifically set forth in this Agreement. By entering into, or performing its duties under, this Agreement, the Collateral Administrator shall not be deemed to assume any obligations or liabilities of the Borrower or the Collateral Manager under this Agreement, and nothing herein contained shall be deemed to release, terminate, discharge, limit, reduce, diminish, modify, amend or otherwise alter in any respect the duties, obligations or liabilities of the Borrower or the Collateral Manager under or pursuant to this Agreement or any other Facility Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Collateral Manager and the Borrower shall cooperate with the Collateral Administrator in connection with the matters described herein, including the confirmation by the Collateral Administrator of the calculations contained in the Monthly Reports or otherwise reasonably requested hereunder. Without limiting the generality of the foregoing, the Collateral Manager shall advise in a timely manner the Collateral Administrator of the results of any determinations required or permitted to be made by it or the Borrower under this Agreement and supply the Collateral Administrator with such other information (in a mutually agreeable format) as is maintained by or on behalf of the Collateral Manager that the Collateral Administrator may from time to time reasonably request with respect to the Collateral and reasonably needed to perform its obligations hereunder or required to permit the Collateral Administrator to perform its obligations hereunder (including the Collateral Manager's determinations of Market Value, Aggregate Collateral Balance, Concentration Limitations and the Borrowing Base, as applicable) and any other information that may be reasonably required under this Agreement with respect to a Collateral Loan (including as to its designation as a Defaulted Collateral Loan, Ineligible Collateral Loan, Equity Security or Credit Improved Loan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)If, in performing its duties under this Agreement, the Collateral Administrator is required to decide between alternative courses of action, the Collateral Administrator may request written instructions from the Borrower or the Collateral Manager as to the course of action desired by it. If the Collateral Administrator does not receive such instructions within five Business Days after it has requested them, the Collateral Administrator may, but shall be under no duty to, take or refrain from taking any such courses of action. The Collateral Administrator shall act in accordance with instructions received after such five-Business Day period except to the extent it has already taken, or committed itself to take, action inconsistent with such instructions. The Collateral Administrator shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance with such advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Nothing herein shall prevent the Collateral Administrator or any of its Affiliates from engaging in other businesses or from rendering services of any kind to any Person.

*Section 1.02.Compensation*. The Borrower agrees to pay, and the Collateral Administrator shall be entitled to receive, compensation for the Collateral Administrator's performance of the duties called for herein as provided in the Collateral Agent and Collateral Administrator Fee Letter. The Borrower agrees to pay or reimburse to the Collateral Administrator upon its request from time to time all reasonable and documented out-of-pocket costs, disbursements, advances, and expenses (including reasonable fees and expenses of legal counsel) incurred in connection with the preparation or execution of this Agreement, or in connection with the transactions contemplated hereby or the administration of this Agreement or performance by the Collateral Administrator of its duties and services under this Agreement (including costs and expenses of any action deemed necessary by the Collateral Administrator to collect any amounts owing to it under this Agreement). All payments hereunder, including, but not limited to indemnities, shall be paid in accordance with the Priority of Payments.

750499896 22723957

<u>751700376 22723957</u>

------

*Section 1.03.Limitation of Responsibility of the Collateral Administrator; Indemnification*. (a) The Collateral Administrator will have no responsibility under this Agreement other than to render the services expressly called for hereunder in good faith and without willful misfeasance or gross negligence. The Collateral Administrator shall incur no liability to anyone in acting upon any signature, instrument, statement, notice, resolution, request, direction, consent, order, certificate, report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by the proper Person. The Collateral Administrator may exercise any of its rights or powers hereunder or perform any of its duties hereunder either directly or by or through agents or attorneys, and the Collateral Administrator shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed hereunder with due care by it. Neither the Collateral Administrator nor any of its affiliates, directors, officers, shareholders, agents or employees will be liable to the Collateral Manager, the Borrower or any other Person, except by reason of acts or omissions by the Collateral Administrator constituting willful misfeasance or gross negligence. The Collateral Administrator shall in no event have any liability for the actions or omissions of the Borrower, the Collateral Manager or any other Person, and shall have no liability for any inaccuracy or error in any duty performed by it that results from or is caused by inaccurate, untimely or incomplete information or data received by it from the Borrower, the Collateral Manager or another Person except to the extent that such inaccuracies or errors are caused by the Collateral Administrator's own willful misconduct or gross negligence. The Collateral Administrator shall not be liable for failing to perform or delay in performing its specified duties hereunder which results from or is caused by a failure or delay on the part of the Borrower, the Collateral Manager or another Person in furnishing necessary, timely and accurate information to the Collateral Administrator. The duties and obligations of the Collateral Administrator and its employees or agents shall be determined solely by the express provisions of this Agreement and they shall not be under any obligation or duty except for the performance of such duties and obligations as are specifically set forth herein, and no implied covenants shall be read into this Agreement against them. The Collateral Administrator may consult with counsel and shall be protected in and shall have no liability as a result of any action reasonably taken in good faith in accordance with the advice of such counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Collateral Administrator may rely conclusively on and shall be fully protected in acting or refraining from acting upon any notice, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, note, electronic communication or other paper or other document (including telecopier or other electronically transmitted instructions, documents or information) furnished to it hereunder and reasonably believed by it in good faith to be genuine. The Collateral Administrator shall not be liable for any action taken by it in good faith and reasonably believed by it to be within the discretion or powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed hereunder, or omitted to be taken by it by reason of the lack of direction or instruction required hereby for such action. The Collateral Administrator shall not be bound to make any investigation into the facts or matters stated in any certificate, report, resolution, instrument, opinion, consent, order, approval, bond or other document. Under no circumstances shall the Collateral Administrator be liable for indirect, punitive, special or consequential loss or damages of any kind whatsoever (including, but not limited to, lost profits) under or pursuant to this Agreement, its duties or obligations hereunder or arising out of or relating to the subject matter hereof even if the Collateral Administrator has been advised of the likelihood of such damages and regardless of the form of such action. In no event shall the Collateral Administrator be responsible or liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of god, lockouts, riots, acts of war, epidemics, acts of terrorism; civil or military disturbances; sabotage, epidemics, diseases, quarantines, national emergencies, interruptions, loss or malfunctions of utilities, computer (hardware or software) or communications services; labor disputes; acts of civil or military authority or governmental action, governmental regulations imposed after the fact, fire, flood, communication line failures,

750499896 22723957

<u>751700376 22723957</u>

------

computer viruses, power failures, earthquakes or other disasters, governmental regulations imposed after the fact, fire, communication line failures, computer viruses, power failures, earthquakes or other disasters. It is expressly acknowledged by the Borrower and the Collateral Manager that application and performance by the Collateral Administrator of its various duties hereunder (including recalculations to be performed in respect of the matters contemplated hereby) shall be based upon, and in reliance upon, data and information provided to it by the Collateral Manager (and/or the Borrower) with respect to the Collateral, and the Collateral Administrator shall have no responsibility for the accuracy or completeness of any such information or data provided to it by such Persons. Nothing herein shall impose or imply any duty or obligation on the part of the Collateral Administrator to verify, investigate or audit any such information or data, or to determine or monitor on an independent basis whether any obligor under the Collateral is in default or in compliance with the underlying documents governing or securing such securities, from time to time, the role of the Collateral Administrator hereunder being solely to perform certain mathematical computations and data comparisons and to provide certain reports and other deliveries, as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Borrower shall, and hereby agrees to, reimburse, indemnify and hold harmless the Collateral Administrator and its affiliates, directors, officers, shareholders, agents and employees for and from any and all Liabilities in respect of, or arising from any acts or omissions performed or omitted by the Collateral Administrator, its affiliates, directors, officers, shareholders, agents or employees pursuant to or in connection with the terms of this Agreement, or in the performance or observance of its duties or obligations under this Agreement; *provided* the same are in good faith and without willful misfeasance, fraud and/or gross negligence on the part of the Collateral Administrator or without reckless disregard of its duties hereunder. The obligations of the Borrower under this <u>Section 15.03(c)</u> shall survive the termination of this Agreement and any earlier resignation or removal of the Collateral Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Nothing herein shall obligate the Collateral Administrator to determine independently the correct characterization or categorization of any item of Collateral, or to evaluate or verify the Collateral Manager's characterization of any item of Collateral including whether any item of Collateral is a Defaulted Collateral Loan, Ineligible Collateral Loan, Equity Security, Covenant Lite Loan, Current Modified Loan, Delayed Drawdown Collateral Loan, DIP Loan, Discount Collateral Loan, Eligible Collateral Loan, First Lien/Last Out Loan, First Lien Loan, Fixed Rate Loan, Floating Rate Loan, Floor Loan, Government Security, Haircut Collateral Loan, Haircut Level 1 Collateral Loan, Haircut Level 2 Collateral Loan, Haircut Level 3 Collateral Loan, Haircut Level 4 Collateral Loan, Listed Collateral Loan, Partial PIK Loan, PIK Loan, Revolving Collateral Loan, Scheduled Split First Lien Loan, Second Lien Loan, Split First Lien Loan, Split Lien Loan, Stretch Senior Loan, Structured Finance Obligation, Substitute Loan, Zero Coupon Obligation or Credit Improved Loan, any such determination being based exclusively upon notification the Collateral Administrator receives from the Collateral Manager and nothing herein shall obligate the Collateral Administrator to review or examine any underlying instrument or contract evidencing, governing or guaranteeing or securing any Collateral Loan in order to verify, confirm, audit or otherwise determine any characteristic thereof. In addition, the Collateral Manager shall notify the Collateral Administrator of any amendment or modification of a Collateral Loan. The Collateral Manager shall review and verify the contents of the aforesaid reports. To the extent any of the information in such reports, instructions or certificates conflicts with information, data or calculations in the records of the Collateral Manager, the Collateral Manager shall notify the Collateral Administrator of such discrepancy and use commercially reasonable efforts to assist the Collateral Administrator in reconciling such discrepancy, failing which the determination of the Collateral Manager shall prevail. The Collateral Agent and the Collateral Administrator shall cooperate with the Collateral Manager in connection with the Collateral Manager's review of the contents of the aforesaid reports, instruction and certificates and will use commercially reasonable efforts to provide such items to the Collateral Manager within a reasonably sufficient time (as agreed between the

750499896 22723957

<u>751700376 22723957</u>

------

Collateral Manager, the Collateral Agent and the Collateral Administrator) prior to any applicable due date to enable such review. The Collateral Administrator shall have no obligation to prepare a Borrowing Base Calculation Statement, or determine the Borrowing Base. Other than as expressly set forth herein, nothing herein shall obligate the Collateral Administrator to review or examine any underlying instrument or contract evidencing, governing or guaranteeing or securing any Collateral Loan in order to verify, confirm, audit or otherwise determine any characteristic thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Without limiting the generality of any terms of this <u>Section 15.03</u>, the Collateral Administrator shall have no liability for any failure, inability or unwillingness on the part of the Collateral Manager or Borrower (or Collateral Agent, if not the same Person as the Collateral Administrator) to provide accurate and complete information on a timely basis to the Collateral Administrator, or otherwise on the part of any such Person to comply with the terms of this Agreement and shall have no liability for any inaccuracy or error in the performance or observance on the Collateral Administrator's part of any of its duties hereunder that is caused by or results from any such inaccurate, incomplete or untimely information received by it, or other failure on the part of any such other Person to comply with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)In addition to, and without limiting, the rights, protections, indemnities and immunities afforded to the Collateral Administrator herein, the Collateral Administrator shall have the same rights, protections, indemnities and immunities as are offered the Collateral Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The Collateral Administrator shall have no obligation to determine the outstanding amounts due and payable in respect of the Advances or the calculation or verification of any Benchmark in respect thereof, and in each case shall entitled to conclusively rely upon information provided by the Administrative Agent in respect of such items.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)The Collateral Administrator shall not be liable for any error of judgment made in good faith by a Responsible Officer of the Collateral Administrator, unless it shall be proven that the Collateral Administrator was grossly negligent in ascertaining the pertinent facts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)No provision of this Agreement shall require the Collateral Administrator to expend or risk its own funds or otherwise incur any financial or other liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers contemplated hereunder, if it shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability is not reasonably assured to it unless such risk or liability relates to the performance of its ordinary services under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)The Collateral Administrator shall have no obligation to determine the Market Value or the price of any Collateral in connection with any actions or duties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)Neither the Collateral Administrator nor any of its directors, officers or employees shall be liable to anyone for any error of judgment, or for any act done or step taken or omitted to be taken by it (or any of its directors, officers of employees), or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, unless such action constitutes willful misconduct, gross negligence or reckless disregard of its duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)The Collateral Administrator shall not be deemed to have notice of any fact, claim or demand with respect hereto unless actually known by a Responsible Officer of the Collateral Administrator or unless (and then only to the extent) received in writing by the Collateral Administrator and specifically referencing this Agreement.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)The permissive right of the Collateral Administrator to take any action hereunder shall not be construed as a duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)All indemnifications contained in this Agreement in favor of the Collateral Administrator shall survive the termination of this Agreement or any resignation or removal of the Collateral Administrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)The Collateral Administrator shall not be responsible for the accuracy or content of any certificate, statement, direction or opinion furnished to it in connection with this Agreement or any other Facility Document or Related Document. The Collateral Administrator shall not have any responsibility for filing or recording any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any security interest or lien granted by any Person under any Facility Document or Related Document. Other than as expressly set forth herein, the Collateral Administrator shall not be responsible to any Person for any recitals, statements, information, representations or warranties regarding the Borrower or the Collateral or in any document, certificate or other writing delivered in connection herewith or therewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectability, priority or sufficiency of thereof or any such other document or the financial condition of any Person or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions related to any Person or the existence or possible existence of any Default or Event of Default. Other than as expressly set forth herein, the Collateral Administrator shall not have any obligation whatsoever to any Person to assure that any collateral exists or is owned by any Person or is cared for, protected or insured or that any liens have been properly or sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular priority, or to exercise or to continue exercising at all or in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities and powers granted or available with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)The Borrower and the Collateral Manager shall use commercially reasonable efforts to cooperate with the Collateral Agent and/or the Collateral Administrator in connection with the matters described herein, including in respect of the confirmation of calculations required under Section 8.06 hereof or as otherwise reasonably requested by the Collateral Agent or the Collateral Administrator hereunder. Without limiting the generality of the foregoing the Collateral Manager shall supply in a timely fashion any information maintained by it, including, without limitation, the classification or characterization of each Collateral Loan or related Obligor that the Collateral Administrator may from time to time reasonably request with respect to the Collateral Loans or obligors or reasonably need to perform the confirmations described above. Nothing herein shall obligate the Collateral Administrator to determine (i) the type, classification or characterization of any Collateral Loan or related Obligor, or (ii) the Advance Rate or Aggregate Collateral Balance of any Collateral Loan or EBITDA of any related Obligor or market value of any Collateral Loan, any such determination in each case being based exclusively upon notification it receives from the Collateral Manager. For purposes of monitoring rating changes by the rating agencies, the Collateral Administrator shall be entitled to use and rely (in good faith) exclusively upon any reputable electronic financial information reporting service (including the Bloomberg wire service), and shall have no liability for any inaccuracies in the information reported by, or other errors or omissions of, any such service.

*Section 1.04.Termination of Collateral Administrator*. (a) At the option of the Borrower (with the prior written consent or at the direction of the Administrative Agent prior to the Collection Date), the Collateral Administrator may be terminated upon at least ten Business Days' written notice of termination from the Borrower to the Collateral Administrator and the Administrative Agent if any of the following events shall occur:

750499896 22723957

<u>751700376 22723957</u>

------

&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)The Collateral Administrator shall, in violation of its duty of care hereunder, default in the performance of any of its material duties under this Agreement and shall not cure such default within thirty days (or, if such default cannot be cured in such time, the Collateral Administrator shall not have given within thirty days such assurance of cure as shall be reasonably satisfactory to the Borrower and the Administrative Agent and cured such default within the time so assured); or

&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)an Insolvency Event relating to the Collateral Administrator occurs.

If an event specified in <u>clause (ii)</u> shall occur, the Collateral Administrator shall give written notice thereof to the Collateral Manager, the Administrative Agent and the Borrower within ten (10) Business Days after the occurrence of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)Except when the Collateral Administrator shall be removed pursuant to <u>subsection (a)</u> of this <u>Section 15.04</u> or shall resign pursuant to <u>subsection (c)</u> of this <u>Section 15.04</u>, no removal or resignation of the Collateral Administrator shall be effective until the date as of which a successor collateral administrator reasonably acceptable to the Administrative Agent, the Borrower and the Collateral Manager shall have agreed in writing to assume all of the Collateral Administrator's duties and obligations pursuant to this Agreement and shall have executed and delivered an agreement in form and content reasonably satisfactory to the Administrative Agent, the Borrower, the Collateral Manager and the Collateral Agent. Upon any resignation or removal of the Collateral Administrator hereunder, the Borrower shall promptly, and in any case within thirty (30) days after the related notice of resignation or removal, appoint a qualified successor to act as collateral administrator hereunder and cause such successor collateral administrator to execute and deliver an agreement accepting such appointment as described in the preceding sentence. If the Borrower fails to appoint such a qualified successor which duly accepts its appointment by properly executing and delivering such an agreement within such time, the retiring Collateral Administrator shall be entitled to petition a court of competent jurisdiction for the appointment of a successor to serve as collateral administrator hereunder and shall be indemnified pursuant to <u>Section 15.03(c)</u> for the reasonable costs and expenses thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)Notwithstanding the foregoing, the Collateral Administrator may resign at any time by giving written notice thereof to the Borrower, the Administrative Agent, the Collateral Manager and the Lenders not less than 90 days prior to such resignation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)Any corporation, organization or entity into which the Collateral Administrator may be merged or converted or with which it may be consolidated, or any corporation, organization or entity resulting from any merger, conversion or consolidation to which the Collateral Administrator shall be a party, or any corporation, organization or entity succeeding to all or substantially all of the collateral administration business of the Collateral Administrator, shall be the successor of the Collateral Administrator hereunder without the execution or filing of any paper or any further act on the part of any of the parties hereto.

*Section 1.05.Representations and Warranties of the Collateral Administrator*. The Collateral Administrator hereby represents and warrants to the Collateral Manager and the Borrower as follows:

&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)The Collateral Administrator is a limited partnership duly organized, validly existing and in good standing under the Laws of the State of Texas and has full limited partnership power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary limited partnership action to authorize this Agreement on the terms and conditions hereof, the execution, delivery and performance of this Agreement and all obligations required hereunder. No license, permit, approval or authorization of, exemption by, notice or report to, or

750499896 22723957

<u>751700376 22723957</u>

------

registration, filing or declaration with, any Governmental Authority, except those that have been obtained, is required by the Collateral Administrator in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and the obligations imposed upon it hereunder. When executed and delivered by the Collateral Administrator and the other parties hereto, this Agreement will constitute the legal, valid and binding obligations of the Collateral Administrator enforceable against the Collateral Administrator in accordance with its terms subject, as to enforcement, (a) to the effect of bankruptcy, insolvency or similar Laws affecting generally the enforcement of creditors' rights as such Laws would apply in the event of any bankruptcy, receivership, insolvency or similar event applicable to the Collateral Administrator and (b) to general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity).

&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)The execution, delivery and performance of this Agreement and the documents and instruments required hereunder will not violate any provision of Applicable Law, or the articles of association or by-laws, as amended, of the Collateral Administrator.

*Section 1.06.Successors and Assigns*. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of the Collateral Administrator; *provided, however,* that the Collateral Administrator may not assign its rights and obligations hereunder without the prior written consent of the Collateral Manager, the Administrative Agent and the Borrower. Notwithstanding the foregoing, the Collateral Administrator consents to the pledge of its rights under this Agreement by the Borrower to the Collateral Agent, as provided in the granting language set forth in <u>Section 7.01</u>.

*Section 1.07.Joint Venture*. Nothing contained in this Agreement (i) shall constitute the Borrower, the Collateral Administrator, the Agents and the Collateral Manager as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of them or (iii) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others.

**Article XVI**<br>**MISCELLANEOUS**

*Section 1.01.No Waiver; Modifications in Writing*. (a) No failure or delay on the part of any Secured Party exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof or the exercise of any other right, power or remedy. Any waiver of any provision of this Agreement or any other Facility Document, and any consent to any departure by any party to this Agreement or such other Facility Document from the terms of any provision of this Agreement, shall be effective only in the specific instance and for the specific purpose for which given. No notice to or demand on the Borrower or the Collateral Manager in any case shall entitle the Borrower or the Collateral Manager to any other or further notice or demand in similar or other circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise provided in this Agreement, including, without limitation, in Section 2.11 with respect to the implementation of a Benchmark Replacement or Conforming Changes (as set forth therein), no amendment, modification, supplement or waiver of this Agreement shall be effective unless signed by the Borrower, the Collateral Manager, the Administrative Agent and the Required Lenders, *provided* that:

750499896 22723957

<u>751700376 22723957</u>

------

&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)any Fundamental Amendment shall require the written consent of all Lenders;

&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)no such amendment, modification, supplement or waiver shall amend, modify or otherwise affect the rights or duties of any Agent, the Custodian, the Document Custodian or the Collateral Administrator hereunder without the prior written consent of such Agent, Custodian, Document Custodian or Collateral Administrator, as the case may be; 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;(iii)no amendment, modification, supplement or waiver shall amend, modify or otherwise affect the rights or duties of the Swingline Lender hereunder without the prior written consent of the Swingline Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Notwithstanding anything to the contrary herein (other than <u>Section 2.18</u>), in connection with the increase of the Commitments hereunder, only the consent of the Lender increasing its Commitment (or providing a new Commitment) shall be required for any amendment or Facility Amount Increase Agreement that affects such increase in Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of such Defaulting Lender.

*Section 1.02.Notices, Etc*. Except where telephonic instructions are authorized herein to be given, all notices, demands, instructions and other communications required or permitted to be given to or made upon any party hereto shall be in writing and shall be personally delivered or sent by registered, certified or express mail, postage prepaid, or by facsimile transmission, or by prepaid courier service, or by electronic mail (of a .pdf or other similar file if the recipient has provided an email address in <u>Schedule 5</u>), and shall be deemed to be given for purposes of this Agreement on the day that such writing is received by the intended recipient thereof in accordance with the provisions of this <u>Section 16.02</u>. Unless otherwise specified in a notice sent or delivered in accordance with the foregoing provisions of this <u>Section 16.02</u>, notices, demands, instructions and other communications in writing shall be given to or made upon the respective parties hereto at their respective addresses (or to their respective facsimile numbers or email addresses) indicated in <u>Schedule 5</u>, and, in the case of telephonic instructions or notices, by calling the telephone number or numbers indicated for such Person in <u>Schedule 5</u>.

Each of the Collateral Agent, the Custodian, the Document Custodian and the Collateral Administrator agrees to accept and act upon instructions or directions pursuant to this Agreement, any other Facility Document, or any Related Document or any document executed in connection herewith or therewith sent by unsecured email (or a .pdf or other similar file), facsimile transmission or other similar unsecured electronic methods; provided, however, that any person providing such instructions or directions shall provide an incumbency certificate listing persons designated to provide such instructions or directions as such incumbency certificate may be supplemented from time to time. If any person elects to give the Collateral Agent, the Custodian, the Document Custodian and the Collateral Administrator email or facsimile instructions (or instructions by a similar electronic method) and the Collateral Agent, the Custodian, the Document Custodian and the Collateral Administrator in its discretion elects to act upon such instructions, the Collateral Agent's, the Custodian's, the Document Custodian's

750499896 22723957

<u>751700376 22723957</u>

------

and the Collateral Administrator's reasonable understanding of such instructions shall be deemed controlling. None of the Collateral Agent, the Custodian, the Document Custodian and the Collateral Administrator shall be liable for any losses, costs or expenses arising directly or indirectly from its reliance upon and compliance with such instructions notwithstanding such instructions conflicting with or being inconsistent with a subsequent written instruction. Any person providing such instructions or directions acknowledges and agrees that there may be more secure methods of transmitting such instructions than the method(s) selected by it and agrees that the security procedures (if any) to be followed in connection with its transmission of such instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances.

*Section 1.03.Taxes*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Any and all payments by the Borrower to or for the account of any Secured Party under any Facility Document shall be made free and clear of and without deduction or withholding for any and all present or future Taxes with respect thereto, unless required by Applicable Law. If any Applicable Law (as determined in the good faith discretion of the Borrower or the Administrative Agent) requires the deduction or withholding of any Tax from any such payment by the Borrower, the Collateral Agent or the Administrative Agent, then the Borrower, the Collateral Agent or the Administrative Agent 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 may be 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 16.03</u>) the applicable Secured Party receives an amount equal to the sum it would have received had no deductions or withholding of Indemnified Taxes been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Borrower agrees to 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;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Borrower agrees to indemnify each Secured Party, within 10 days after demand therefor, for (i) the full amount of Indemnified Taxes (including any Indemnified Taxes imposed or asserted by any jurisdiction on or attributable to amounts payable under this <u>Section 16.03</u>) payable or paid by any Secured Party or required to be withheld or deducted from a payment to such Secured Party and (ii) any reasonable liability arising from Indemnified Taxes or with respect thereto, in each case whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant taxing Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by a Secured Party (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of another Secured Party, shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Each Lender shall severally indemnify the Administrative Agent, within 10 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 16.06(c)(ii)</u> relating to the maintenance of a 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 Facility 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

750499896 22723957

<u>751700376 22723957</u>

------

hereby authorizes the Administrative Agent to set off and apply any and all amounts at any time owing to such Lender under any Facility 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 16.03(d)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)As soon as practicable after the date of any payment of Taxes by the Borrower to any Governmental Authority pursuant to this <u>Section 16.03,</u> the Borrower will furnish to the Administrative Agent the original or a certified copy of a receipt issued by the relevant Governmental Authority evidencing payment thereof (or other evidence of payment as may be reasonably satisfactory to the Administrative Agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)If any Secured Party in its sole discretion, but acting in good faith, determines that it has received a refund of any Indemnified Taxes with respect to which it has been indemnified pursuant to this <u>Section 16.03</u> (including by the payment of additional amounts pursuant to <u>Section 16.03(a)</u>), such Secured Party shall reimburse the Borrower (or the Collateral Manager, as applicable) such amount of any refund received (net of all out-of-pocket expenses (including Taxes) incurred and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund)) as such Secured Party shall determine in its sole discretion, but acting in good faith, to be attributable to the relevant Indemnified Taxes; *provided* that in the event that such Secured Party is required to repay such refund (*plus* any penalties, interest, or other charges imposed by the relevant taxing authority) to the relevant taxing authority, the Borrower agrees to return the refund to such Secured Party. Notwithstanding anything to the contrary in this <u>Section 16.03(f)</u>, in no event will any Secured Party be required to pay any amount to an indemnifying party pursuant to this <u>Section 16.03(f)</u> the payment of which would place such Secured Party in a less favorable net after-Tax position than such Secured 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. Unless required by Applicable Law, at no time shall any Agent have any obligation to file for or otherwise pursue on behalf of a Lender, or have any obligation to pay to any Lender, any refund of Taxes withheld or deducted from funds paid for the account of such Lender, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)(i) Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Facility 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, any 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>Sections 16.03(g)(ii)</u>, <u>(iii)</u> and <u>(v)</u> below) shall not be required if in the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Without limiting the generality of <u>Section 16.03(g)(i)</u>, each Lender that is a U.S. Person shall, 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 any Agent), deliver to the Borrower and each Agent, two accurate, complete and signed copies of U.S. Internal Revenue Service Form W-9 or any successor form, certifying that such Lender is entitled to an exemption from U.S. backup withholding tax.

750499896 22723957

<u>751700376 22723957</u>

------

&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)Without limiting the generality of <u>Section 16.03(g)(i)</u>, each Lender that is not a U.S. Person (a *"Non-U.S. Lender"*) shall, to the extent it is legally entitled to do so, deliver to the Borrower and each Agent, on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or any Agent), two accurate, complete and signed copies of whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)in the case of a Non-U.S. 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 Facility Document, executed copies of U.S. Internal Revenue Service Form W-8BEN-E (or W-8BEN, as applicable) 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 Facility Document, U.S. Internal Revenue Service Form W-8BEN-E (or W-8BEN, as applicable) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)executed copies of U.S. Internal Revenue Service Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate to the effect that such Non-U.S. 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" described in Section 881(c)(3)(C) of the Code (a *"U.S. Tax Compliance Certificate"*) and (y) executed copies of U.S. Internal Revenue Service Form W-8BEN-E (or W-8BEN, as applicable); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)to the extent a Non-U.S. Lender is not the beneficial owner, executed copies of U.S. Internal Revenue Service Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN-E (or W-8BEN, as applicable), a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; *provided* that if the Non-U.S. Lender is a partnership and one or more direct or indirect partners of such Non-U.S. Lender are claiming the portfolio interest exemption, such Non-U.S. Lender may provide a U.S. Tax Compliance Certificate on behalf of each such direct and indirect partner.

&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)Each Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower and the Agents (in such number of copies as shall be requested by the recipient) on or prior to the date on which such Non-U.S. Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower or any 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 Agents to determine the withholding or deduction required to be made.

&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)If a payment made to a Lender under any Facility 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 and for purposes of this <u>Section 16.03(g)(v)</u>, any intergovernmental agreement entered into with the United States in

750499896 22723957

<u>751700376 22723957</u>

------

connection with the implementation of such Sections and any legislation, regulations or official guidance implementing such an intergovernmental agreement), 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>Section 16.03(g)(v)</u>, "FATCA" shall include any amendments made to FATCA after the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)To the extent legally entitled to do so, each Lender agrees that, from time to time after the Closing Date, such Lender shall deliver the forms described above, as applicable, as promptly as practicable after (A) receipt of a reasonable written request therefor from the Borrower or an Agent or (B) when a lapse in time or change in circumstance renders a previously provided form or certificate obsolete or inaccurate. Notwithstanding any other provision of this <u>Section 16.03</u>, a Lender shall not be required to deliver any form after the Closing Date pursuant to this <u>Section 16.03(g)</u> that such Lender is not legally able to deliver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)If any Lender requires the Borrower to pay any Indemnified Taxes or additional amount to such Lender or any Governmental Authority for the account of such Lender pursuant to this <u>Section 16.03</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Advances hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if such Lender determines, in its sole discretion, that such designation or assignment (i) would eliminate or reduce amounts payable pursuant to this <u>Section 16.03</u> 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. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Nothing in this <u>Section 16.03</u> shall be construed to require any Secured Party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Without prejudice to the survival of any other agreement hereunder, the agreements and obligations contained in this <u>Section 16.03</u> shall survive the termination of this Agreement.

*Section 1.04.Costs and Expenses; Indemnification*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Borrower agrees to promptly pay on demand all reasonable and documented out-of-pocket costs and expenses of the Agents, the Custodian, the Document Custodian and Citibank in any other capacity in connection with the preparation, review, negotiation, reproduction, execution and delivery of this Agreement and the other Facility Documents and the performance of their duties under the Facility Documents, including the reasonable and documented fees and disbursements of one outside counsel for the Administrative Agent and the Lenders, collectively, and outside counsel for the Collateral Agent, the Custodian, the Document Custodian and the Collateral Administrator, costs and expenses of creating, perfecting, releasing or enforcing the Collateral Agent's security interests in the Collateral, including filing and recording fees, expenses, search fees, UCC filing fees and the equivalent thereof in any foreign jurisdiction, if applicable, and all other related fees and expenses in connection therewith; and in

750499896 22723957

<u>751700376 22723957</u>

------

connection with the administration and any waiver, consent, modification or amendment or similar agreement in respect of this Agreement or any other Facility Document and advising the Agents, the Custodian, the Document Custodian, the Collateral Administrator and the Lenders as to their respective rights, remedies and responsibilities. Further, the Borrower agrees to promptly pay on demand all reasonable and documented costs and expenses of each of the Secured Parties in connection with the enforcement of this Agreement or any other Facility Document, including all reasonable and documented costs and expenses incurred by the Secured Parties in connection with the preservation, collection, foreclosure or enforcement of the Collateral subject to the Facility Documents or any interest, right, power or remedy of the Secured Parties or in connection with the collection or enforcement of any of the Obligations or the proof, protection, administration or resolution of any claim based upon the Obligations in any insolvency proceeding, including all reasonable fees and disbursements of attorneys, accountants, auditors, consultants, appraisers and other professionals engaged by any of the Secured Parties. Without prejudice to its rights hereunder, the expenses and the compensation for the services of the Secured Parties are intended to constitute expenses of administration under any applicable bankruptcy Law. For the avoidance of doubt, this <u>Section 16.04(a)</u> shall not apply to Taxes, other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim, which shall be covered by <u>Section 16.03</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Borrower agrees to indemnify and hold harmless each Secured Party and each of their Affiliates and the respective officers, directors, employees, agents, managers of, and any Person controlling any of, the foregoing (each, an *"Indemnified Party"*) from and against any and all Liabilities that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of the execution, delivery, enforcement, performance, administration of or otherwise arising out of or incurred in connection with this Agreement, any other Facility Document, any Related Document or any transaction contemplated hereby or thereby (and regardless of whether or not any such transactions are consummated), including any such Liability that is incurred or arises out of or in connection with, or by reason of any one or more of the following: (i) preparation for a defense of any investigation, litigation or proceeding arising out of, related to or in connection with this Agreement, any other Facility Document, any Related Document or any of the transactions contemplated hereby or thereby; (ii) any breach of any covenant by the Borrower, the Parent or the Collateral Manager contained in any Facility Document; (iii) any representation or warranty made or deemed made by the Borrower, the Parent or the Collateral Manager contained in any Facility Document or in any certificate, statement or report delivered in connection therewith is false or incorrect; (iv) any failure by the Borrower, the Parent or the Collateral Manager to comply with any Applicable Law or contractual obligation binding upon it; (v) any failure to vest, or delay in vesting, in the Collateral Agent (for the benefit of the Secured Parties) a perfected security interest in all of the Collateral free and clear of all Liens (other than Permitted Liens); (vi) any action or omission, not expressly authorized by the Facility Documents, by the Borrower, the Parent, or any of their respective Affiliates which has the effect of impairing the validity or enforceability of the Collateral or the rights of the Agents or the other Secured Parties with respect thereto; (vii) the failure to file, or any delay in filing, financing statements, continuation statements or the equivalent thereof in any foreign jurisdiction or other similar instruments or documents under the UCC of any applicable jurisdiction or other Applicable Law with respect to any Collateral, whether at the time of any Advance or at any subsequent time; (viii) any dispute, claim, offset or defense (other than the discharge in bankruptcy of an Obligor) of an Obligor to the payment with respect to any Collateral (including a defense based on any Collateral Loan (or the Related Documents evidencing such Collateral Loan) not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms, except to the extent such unenforceability is due to the bankruptcy of such Obligor), or any other claim resulting from any related property securing such Collateral Loan; (ix) the commingling of Collections on the Collateral at any time with other funds; (x) any failure by the Borrower to give reasonably equivalent value to the applicable seller, in consideration for the transfer by such

750499896 22723957

<u>751700376 22723957</u>

------

seller to the Borrower of any item of Collateral or any attempt by any Person to void or otherwise avoid any such transfer under any statutory provision or common law or equitable action, including any provision of the Bankruptcy Code; (xi) the failure of the Borrower, the Collateral Manager or any of their respective agents or representatives to remit to the Collection Account, within two (2) Business Days of receipt, Collections on the Collateral Loans remitted to the Borrower, the Collateral Manager or any such agent or representative as provided in this Agreement; and (xii) any Default or Event of Default; *provided* that the Borrower shall not be liable (A) for any Liability or losses arising due to the deterioration in the credit quality or market value of the Collateral Loans or other Collateral hereunder, or (B) to the extent any such Liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party's gross negligence or willful misconduct; *provided, further,* that any payment hereunder which relates to taxes, levies, imposes, deductions, charges and withholdings, and all liabilities (including penalties, interest and expenses) with respect thereto, or additional sums described in <u>Sections 2.09</u>, <u>2.10</u> or <u>16.03</u>, shall not be covered by this <u>Section 16.04(b)</u>. In no case shall the Borrower be responsible for any Indemnified Party's lost revenues or lost profits or for any indirect, special, exemplary, punitive or consequential damages suffered by such Indemnified Party (but, for the avoidance of doubt, the Borrower shall be responsible for any liability consisting of such amount paid by an Indemnified Party to a third party).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Collateral Manager agrees to indemnify and hold harmless each Indemnified Party from and against any and all Liabilities that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of any one or more of the following: (i) any breach of any covenant by the Collateral Manager contained in any Facility Document; (ii) any representation or warranty made or deemed made by the Collateral Manager contained in any Facility Document or in any certificate, statement or report delivered in connection therewith is false or misleading; (iii) any failure by the Collateral Manager to comply with any Applicable Law or contractual obligation binding upon it; (iv) any action or inaction of the Collateral Manager which causes the Collateral Agent (for the benefit of the Secured Parties) not to have a perfected security interest in all of the Collateral free and clear of all Liens (other than Permitted Liens); (v) the commingling of Collections on the Collateral at any time with other funds of the Collateral Manager; and (vi) any failure by the Collateral Manager to remit to the Collection Account, within two (2) Business Days of receipt, Collections on the Collateral Loans remitted to the Collateral Manager; <u>provided</u> the Collateral Manager shall not be liable (A) for any Liability or losses arising due to the deterioration in the credit quality or market value of the Collateral Loans or other Collateral hereunder, (B) to the extent any such Liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party's bad faith, gross negligence or willful misconduct; <u>provided</u>, <u>further</u>, that any payment hereunder which relates to taxes, levies, imposes, deductions, charges and withholdings, and all liabilities (including penalties, interest and expenses) with respect thereto, or additional sums described in <u>Sections 2.09</u>, <u>2.10</u> or <u>16.03</u>, shall not be covered by this <u>Section 16.04(c)</u>, or (C) if any such Liability results from a claim brought by the Collateral Manager or its Affiliates against an Indemnified Party for breach in bad faith of such Indemnified Party's obligations hereunder or under any other Facility Document, if the Collateral Manager or such Affiliate has obtained a final and non-appealable judgment in its favor on such claim as determined by a court of competent jurisdiction. The Collateral Manager shall not have any liability hereunder to any Indemnified Party to the extent an Indemnified Party affects any settlement of a matter that is (or could be) subject to indemnification hereunder without the prior written consent of the Collateral Manager (which consent shall not be unreasonably withheld or delayed). In no case shall the Collateral Manager be responsible for any Indemnified Party's lost revenues or lost profits or for any indirect, special, exemplary or consequential damages suffered by such Indemnified Party (but, for the avoidance of doubt, the Collateral Manager shall be responsible for any liability consisting of such amount paid by an Indemnified Party to a third party).

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Notwithstanding the foregoing, for the avoidance of doubt, the indemnification obligations of the Borrower and the Collateral Manager set forth in this Section 16.04 supersede in its entirety the indemnification obligations of Main Street Capital Corporation set forth in Section (D)(2) in the Engagement Letter.

*Section 1.05.Execution in Counterparts*. 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 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 Law</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. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but such counterparts shall, together, constitute one and the same instrument. 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 Law due to the character or intended character of the writings.

*Section 1.06.Assignability*. (a) Each Lender may, with the consent of the Administrative Agent and the Borrower, assign to an assignee all or a portion of its rights and obligations under this Agreement (including all or a portion of its outstanding Advances or interests therein owned by it, together with ratable portions of its Commitment); *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;(i)each of the Borrower's and the Administrative Agent's consent to any such assignment (x) shall not be unreasonably withheld or delayed and (y) shall not be required if the assignee is a Permitted Assignee with respect to such assignor; 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;(ii)the Borrower's consent to any such assignment pursuant to this <u>Section 16.06(a)</u> shall not be required if an Event of Default shall have occurred and is continuing (and not been waived by the Lenders in accordance with <u>Section 16.01</u>).

The parties to each such assignment shall execute and deliver to the Administrative Agent (with a copy to the Collateral Agent) an Assignment and Acceptance and the applicable tax forms required by <u>Section 16.03(g)</u>. Notwithstanding any other provision of this <u>Section 16.06</u>, (A) no assignment by any Lender to the Borrower, the Parent, the Collateral Manager or any of their respective Affiliates shall be permitted and (B) any Lender may at any time pledge or grant a security interest in all or any portion of its rights (including rights to payment of principal and interest) under this Agreement to secure obligations of such Lender, including any pledge or security interest granted to a Federal Reserve Bank, without notice to or consent of the Borrower or the Administrative Agent; *provided* 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Borrower may not assign its rights or obligations hereunder or any interest herein without the prior written consent of the Agents and the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)(i)&nbsp;&nbsp;&nbsp;&nbsp;Any Lender may, without the consent of the Borrower, sell participations to Participants in all or a portion of such Lender's rights and obligations under this Agreement; *provided* that (A) such Lender's obligations under this Agreement shall remain unchanged, (B)

750499896 22723957

<u>751700376 22723957</u>

------

such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (C) the Borrower, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement, and (D) each Participant shall have agreed to be bound by this <u>Section 16.06(c)</u>, <u>Section 16.06(d)</u>, <u>Section 16.06(e)</u> and <u>Section 16.17</u>. Any agreement pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; *provided* that such agreement may provide that such Lender will not, without the consent of the Participant, agree to any Fundamental Amendment. Each Lender that sells a participation agrees, at the Borrower's request and expense, to use reasonable efforts to cooperate with the Borrower to effectuate the provisions of <u>Section 2.17</u> with respect to any Participant. <u>Sections 2.09</u>, <u>2.10</u>, and <u>16.03</u> shall apply to each Participant as if it were a Lender and had acquired its interest by assignment pursuant to <u>clause (a)</u> of this Section (subject to the requirements and limitations set forth in <u>Section 16.03</u>, including the requirements under <u>Section 16.03(g)</u>); *provided* that (1) such Participant agrees to be subject to the provisions of <u>Section 16.06</u> as if it were an assignee under <u>clause (a)</u> of this <u>Section 16.06</u> and (2) no Participant shall be entitled to any amount under <u>Section 2.09</u>, <u>2.10</u>, or <u>16.03</u> which is greater than the amount the related Lender would have been entitled to under any such Sections or provisions if the applicable participation had not occurred.

&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)In the event that any Lender sells participations in any portion of its rights and obligations hereunder, such Lender as nonfiduciary agent for the Borrower shall maintain a register on which it enters the name of all Participants in the Advances held by it and the principal amount (and stated interest thereon) of the portion of the Advance which is the subject of the participation (the *"Participant Register"*). An Advance may be participated in whole or in part only by registration of such participation on the Participant Register. The Participant Register shall be available for inspection by the Borrower to the extent necessary for the Borrower to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1 of the United States Treasury Regulations. The entries in a Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in such Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent (in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Administrative Agent, on behalf of and acting solely for this purpose as the nonfiduciary agent of the Borrower, shall maintain at its address specified in <u>Schedule 5</u> or such other address as the Administrative Agent shall designate in writing to the Lenders, a copy of this Agreement and each Assignment and Acceptance and Lender Joinder Agreement delivered to and accepted by it and a register (the *"Register"*) for the recordation of the names and addresses of the Lenders and the aggregate outstanding principal amount of the outstanding Advances maintained by each Lender under this Agreement (and any stated interest thereon). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agents and the Lenders shall treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice. An Advance may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register and in accordance with this <u>Section 16.06</u>. The Administrative Agent shall update and furnish to the Collateral Agent, the Collateral Administrator and the Borrower from time to time at the request of the Collateral Agent or the Borrower an updated version of <u>Schedule 1</u> reflecting the then-current allocation of the Commitments.

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Notwithstanding anything to the contrary set forth herein or in any other Facility Document, each Lender hereunder, and each Participant, must at all times be a "qualified purchaser" as defined in the Investment Company Act (a *"Qualified Purchaser"*) and a "qualified institutional buyer" as defined in Rule 144A under the Securities Act (a *"QIB"*). Each Lender represents to the Borrower, (i) on the date that it becomes a party to this Agreement (whether by being a signatory hereto or by entering into an Assignment and Acceptance or Lender Joinder Agreement) and (ii) on each date on which it makes an Advance hereunder, that it is a Qualified Purchaser and a QIB. Each Lender further agrees that it shall not assign, or grant any participations in, any of its Advances or its Commitment to any Person unless such Person is a Qualified Purchaser and a QIB.

*Section 1.07.Governing Law*. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

*Section 1.08.Severability of Provisions*. Any provision of this Agreement or any other Facility Document which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.

*Section 1.09.Confidentiality*. (a) Each Secured Party agrees to keep confidential all non-public information provided to it by the Borrower or the Collateral Manager with respect to the Borrower, its Affiliates, the Collateral, the Obligors, the Collateral Manager or any other information furnished to any Secured Party pursuant to this Agreement or any other Facility Document (collectively, the *"Borrower Information"*); *provided* that nothing herein shall prevent any Secured Party from disclosing any Borrower Information (a) in connection with this Agreement and the other Facility Documents and not for any other purpose, (x) to any Secured Party or any Affiliate or branch of a Secured Party, or (y) any of their respective Affiliates, employees, directors, agents, attorneys, accountants and other professional advisors (collectively, the *"Secured Party Representatives"*), it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Borrower Information and instructed to keep such Borrower Information confidential, (b) subject to an agreement to comply with the provisions of this Section and to use the Borrower Information only in connection with this Agreement and the other Facility Documents and not for any other purpose, to any actual or bone fide prospective permitted assignees and Participants in any of the Secured Parties' interests under or in connection with this Agreement, (c) to any Governmental Authority with jurisdiction over any Secured Party or any of its Affiliates or any Secured Party Representative, (d) in response to any order of any court or other Governmental Authority or as may otherwise be required to be disclosed pursuant to any Applicable Law (provided that such Secured Party will, to the extent permitted by law, endeavor to promptly notify the Borrower and the Collateral Manager in advance of such pending disclosure), (e) that is a matter of general public knowledge or that has heretofore been made available to the public by any Person other than any Secured Party or any Secured Party Representative, (f) in connection with the exercise of any remedy hereunder or under any other Facility Document or any action or proceeding relating to this Agreement or any other Facility Document or the enforcement of rights hereunder or thereunder, (g) to the extent required or requested by any Governmental Authority purporting to have jurisdiction over such Person or its Secured Party Representatives (including any self-regulatory authority, such as the National Association of Insurance Commissioners), (h) on a confidential basis to (i) any rating agency in connection with rating the Borrower or the credit facilities provided hereunder or (ii) the CUSIP Service Bureau or any similar agency in connection with the issuance and monitoring of CUSIP numbers or other market identifiers with respect to the

750499896 22723957

<u>751700376 22723957</u>

------

credit facilities provided hereunder, or (i) with the consent of the Borrower or the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, for the avoidance of doubt, the confidentiality provision set forth in this Section 16.09 supersede in its entirety the confidentiality provisions set forth in Section (E)(7) in the Engagement Letter.

*Section 1.10.Merger*. This Agreement and the other Facility Documents executed by the Administrative Agent or the Lenders taken as a whole incorporate the entire agreement between the parties hereto and thereto concerning the subject matter hereof and thereof and this Agreement and such other Facility Documents supersede any prior agreements among the parties relating to the subject matter thereof.

*Section 1.11.Survival*. All representations and warranties made hereunder, in the other Facility Documents and in any certificate delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery of this Agreement and the making of the Advances hereunder. The agreements in <u>Sections 2.04(f)</u>, <u>2.09</u>, <u>2.10</u>, <u>2.12</u>, <u>12.04</u>, <u>16.03</u>, <u>16.04</u>, <u>16.09</u>, <u>16.16</u>, <u>16.18</u> and <u>16.19</u> and this <u>Section 16.11</u> shall survive the termination of this Agreement in whole or in part and the payment in full of the principal of and interest on the Advances, any foreclosure under, or modification, release or discharge of, any or all of the Facility Documents and the resignation or replacement of any Agent.

*Section 1.12.Submission to Jurisdiction; Waivers; Service of Process; Etc*. Each party hereto hereby irrevocably and unconditionally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)submits for itself and its property in any legal action or proceeding relating to this Agreement or the other Facility Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York sitting in New York County, and the appellate courts of any of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)consents that any such action or proceeding may be brought in any court described in <u>Section 16.12(a)</u> and waives to the fullest extent permitted by Applicable Law any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)each party hereto (other than the Collateral Agent and the Collateral Administrator) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such Person at its address set forth in <u>Schedule 5</u> or at such other address as may be permitted thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)agrees that nothing herein shall affect the right to effect service of process, summons, notices and documents in any other manner permitted by Applicable Law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)waives, to the maximum extent not prohibited by Law, any right it may have to claim or recover in any legal action or proceeding against any Secured Party arising out of or relating to this Agreement or any other Facility Document any special, exemplary, punitive or consequential damages, provided that nothing in this sentence shall diminish the indemnification obligations of the Borrower in the event any third party claim includes such damages.

*Section 1.13.Waiver of Jury Trial*. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL

750499896 22723957

<u>751700376 22723957</u>

------

ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FACILITY DOCUMENT OR FOR ANY COUNTERCLAIM HEREIN OR THEREIN OR RELATING HERETO OR THERETO.

*Section 1.14.Right of Setoff; Payments Pro Rata.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Subject to <u>Section 9.01(a)</u>, if an Event of Default shall have occurred, each Lender and each of their respective branches and Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such branch or Affiliate to or for the credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under this Agreement or any other Facility Document to such Lender or their respective branches or Affiliates, irrespective of whether or not such Lender, branch or Affiliate shall have made any demand under this Agreement or any other Facility Document and although such obligations of the Borrower may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; *provided*, that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of <u>Section 2.16</u> and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the obligations owing to such Defaulting Lender as to which it exercised such right of setoff. The rights of each Lender and their respective branches and Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff) that such Lender or their respective branches or Affiliates may have. Each Lender agrees to notify the Borrower and the Administrative Agent promptly after any such setoff and application, *provided*, that the failure to give such notice shall not affect the validity of such setoff and application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Each of the Lenders agrees that, if it should receive any amount under this Agreement or any other Facility Document (whether by voluntary payments, by realization upon security, by the exercise of the right of setoff or banker's lien, by counterclaim or cross action, by the enforcement of any right under the Facility Documents, or otherwise) which is applicable to the payment of the principal of, or interest on, the Advances or fees, of a sum which with respect to the related sum or sums received by other Lenders is in a greater proportion than the total of such Obligation then owed and due to such Lender bears to the total of such Obligation then owed and due to all of the Lenders immediately prior to such receipt, then such Lender receiving such excess payment shall purchase for cash without recourse or warranty from the other Lenders an interest in the Obligations to such other Lenders in such amount as shall result in a proportional participation by all of the Lenders in such disproportionate sum received; *provided* that if all or any portion of such excess amount is thereafter recovered from such Lender, such purchase shall be rescinded and the purchase price restored to the extent of such recovery, but without interest.

*Section 1.15.Waiver of Setoff.* Each of the Borrower and the Collateral Manager hereby waives any right of setoff it may have or to which it may be entitled under this Agreement from time to time against any Lender or its assets.

*Section 1.16.PATRIOT Act Notice*. Each Agent, each Lender, the Custodian, the Document Custodian and the Collateral Administrator hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law on October 26, 2001)) (the *"PATRIOT Act"*), it is required to obtain, verify, record and update

750499896 22723957

<u>751700376 22723957</u>

------

information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Person to identify the Borrower in accordance with the PATRIOT Act. The Borrower shall provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by such Person in order to assist such Person in maintaining compliance with the PATRIOT Act.

*Section 1.17.Legal Holidays*. In the event that the date of any Payment Date, date of prepayment of Advances or the Final Maturity Date shall not be a Business Day, then notwithstanding any other provision of this Agreement or any other Facility Document, payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of any such Payment Date, date of prepayment or Final Maturity Date, as the case may be, and interest shall accrue on such payment for the period from and after any such nominal date to but excluding such next succeeding Business Day.

*Section 1.18.Non-Petition*. The Collateral Manager and each Secured Party hereby agrees not to institute against, or join, cooperate with or encourage any other Person in instituting against, the Borrower any bankruptcy, reorganization, receivership, arrangement, insolvency, moratorium or liquidation proceeding or other proceeding under federal or state bankruptcy or similar Laws until at least one year and one day, or if longer the applicable preference period then in effect *plus* one day, after the payment in full of all outstanding Obligations and the termination of all Commitments; provided that nothing in this Section 13.17 shall preclude, or be deemed to prevent, any Secured Party (a) from taking any action prior to the expiration of the aforementioned one year and one day period, or, if longer, the applicable preference period then in effect, in (i) any case or proceeding voluntarily filed or commenced by the Borrower or (ii) any involuntary insolvency proceeding filed or commenced against the Borrower by a Person other than any such Secured Party, or (b) from commencing against the Borrower or any properties of the Borrower any legal action which is not a bankruptcy, reorganization, receivership, arrangement, insolvency, moratorium or liquidation proceeding or other proceeding under federal or state bankruptcy or similar laws. The provisions of this <u>Section 16.18</u> shall survive the termination of this Agreement.

*Section 1.19.Acknowledgement and Consent to Bail-In of Affected Financial Institutions.* Notwithstanding anything to the contrary in any Facility Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any Lender that is an Affected Financial Institution arising under any Facility 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder which may be payable to it by any Lender that is an Affected Financial Institution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the effects of any Bail-in Action on any such liability, including, if applicable:

&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)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;&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 Facility Document; or

750499896 22723957

<u>751700376 22723957</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)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.

*Section 1.20.Acknowledgement Regarding Any Supported QFCs*. To the extent that the Facility Documents provide support, through a guarantee or otherwise, for any agreement or instrument that is a QFC (such support, "*QFC Credit Support*" and each such QFC a "*Supported QFC*"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "*U.S. Special Resolution Regimes*") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Facility Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)In the event a Covered Entity that is party to a Supported QFC (each, a "*Covered Party*") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Facility Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Facility Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)As used in this <u>Section 16.20</u>, the following terms have the following meanings:

"*BHC Act Affiliate*" of a party shall mean an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"*Covered Entity*" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

"*Default Right*" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§252.81, 47.2 or 382.1, as applicable.

750499896 22723957

<u>751700376 22723957</u>

------

"*QFC*" shall have the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

[Signature Pages to Follow]

750499896 22723957

<u>751700376 22723957</u>

------

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

MSCC Funding I, LLC, as Borrower

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:<br>

Main Street Capital Corporation, as Collateral Manager

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:<br>

750499896 22723957

<u>751700376 22723957</u>

------

Truist Bank, as Administrative Agent<br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:<br>

Truist Bank, as Lender and Swingline Lender<br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:<br>

Apple Bank for Savings, as Lender <br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:

Zions Bancorporation N.A. dba Amegy Bank, as Lender <br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:

First Financial Bank, as Lender <br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:

750499896 22723957

<u>751700376 22723957</u>

------

Citibank, N.A., as Collateral Agent<br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:<br>

Citibank, N.A., as Custodian<br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:<br>

Virtus Group, LP, as Collateral Administrator

By: Rocket Partners Holdings, LLC, its General Partner<br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:

Citibank, N.A., as Document Custodian<br>

By:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;</u><br> Name:<br>Title:

750499896 22723957

<u>751700376 22723957</u>

## Exhibit 10.14

**Exhibit 10.14**

***Execution Version***

Main Street Capital Corporation

First Supplement to Master Note Purchase Agreement

Dated as of February 2, 2023

Re:&nbsp;&nbsp;&nbsp;&nbsp;$50,000,000 7.53% Series B Senior Notes

Due December 23, 2025

------

**Main Street Capital Corporation**

Dated as of

February 2, 2023

To the Additional Purchasers named in

Schedule A hereto

Ladies and Gentlemen:

This First Supplement to Master Note Purchase Agreement (the **"Supplement"**) is between Main Street Capital Corporation, a Maryland corporation (the **"Company"**), and the institutional investors named on Schedule A attached hereto (the **"Additional Purchasers"**).

Reference is hereby made to that certain Master Note Purchase Agreement dated as of December 23, 2022 (as amended, restated, supplemented, or otherwise modified from time to time, the **"Note Purchase Agreement"**) among the Company and the Purchasers listed on the Purchaser Schedule thereto. All capitalized terms not otherwise defined herein shall have the same meaning as specified in the Note Purchase Agreement. Reference is further made to Section 4.2 of the Note Purchase Agreement which requires that, prior to the delivery of any Additional Notes, the Company and each Additional Purchaser shall execute and deliver a Supplement.

The Company hereby agrees with the Additional Purchasers as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;The Company has authorized the issue and sale of $50,000,000 aggregate principal amount of its 7.53% Series B Senior Notes due December 23, 2025 (the **"Series B Notes"**). The Series B Notes, together with the Series A Notes issued pursuant to the Note Purchase Agreement and each series of Additional Notes which may from time to time hereafter be issued pursuant to the provisions of Section 2.2 of the Note Purchase Agreement, are collectively referred to as the "**Notes***"* (such term shall also include any such notes issued in substitution therefor pursuant to Section 13 of the Note Purchase Agreement). The Series B Notes shall be substantially in the form set out in Schedule 1(b) to the Note Purchase Agreement with such changes therefrom, if any, as may be approved by the Additional Purchasers and the Company.

&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof and as set forth in the Note Purchase Agreement and on the basis of the representations and warranties hereinafter set forth, the Company agrees to issue and sell to each Additional Purchaser, and each Additional Purchaser agrees to purchase from the Company, Series B Notes in the principal amount set forth opposite such Additional Purchaser's name on Schedule A hereto at a price of 100% of the principal amount thereof on the closing date hereinafter mentioned.

&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;The sale and purchase of the Series B Notes to be purchased by each Additional Purchaser shall occur at the offices of Jones Day, at 250 Vesey Street, New York, NY

------

10281-1047, at 1:30 pm Chicago time (or such other place and time agreed by the Company and the Additional Purchasers) (the **"Series B Closing"**) on February 2, 2023 or on such other Business Day thereafter as may be agreed upon by the Company and the Additional Purchasers. At the Series B Closing, the Company will deliver to each Additional Purchaser the Series B Notes to be purchased by such Additional Purchaser in the form of a single Series B Note (or such greater number of Series B Notes in denominations of at least $100,000 as such Additional Purchaser may request) dated the date of the Series B Closing and registered in such Additional Purchaser's name (or in the name of such Additional Purchaser's nominee), against delivery by such Additional Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to account number 3807304 at Amegy Bank, 4400 Post Oak Parkway, Houston, TX 77027, ABA No. 113011258. If, at the Series B Closing, the Company shall fail to tender such Series B Notes to any Additional Purchaser as provided above in this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to any Additional Purchaser's satisfaction, such Additional Purchaser shall, at such Additional Purchaser's election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Additional Purchaser may have by reason of such failure by the Company to tender such Series B Notes or any of the conditions specified in Section 4 not having been fulfilled to such Additional Purchaser's satisfaction.

&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;The obligation of each Additional Purchaser to purchase and pay for the Series B Notes to be sold to such Additional Purchaser at the Series B Closing is subject to the fulfillment to such Additional Purchaser's satisfaction, prior to the Series B Closing, of the conditions set forth in Section 4.1 and 4.2 of the Note Purchase Agreement with respect to the Series B Notes to be purchased at the Series B Closing as if each reference to "Series A Notes", "Additional Notes," "Closing" and "Additional Purchaser" set forth therein was modified to refer the "Series B Notes," the "Series B Closing" and the "Additional Purchaser" (each as defined in this Supplement) and to the following additional conditions:

&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Except as supplemented, amended or superseded by the representations and warranties set forth in Exhibit A hereto, each of the representations and warranties of the Company set forth in Section 5 of the Note Purchase Agreement shall be correct in all material respects as of the date of the Series B Closing (except for representations and warranties which apply to a specific earlier date (other than the Series A Closing Date) which shall be true in all material respects as of such earlier date or as of the date specified in Exhibit A to the extent such provision is superseded in Exhibit A) and the Company shall have delivered to each Additional Purchaser an Officer's Certificate, dated the date of the Series B Closing certifying that such condition has been fulfilled.

&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;As set forth in Exhibit B, the specified sections of the Note Purchase Agreement shall be amended and restated in its entirety.

&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;Contemporaneously with the Series B Closing, the Company shall sell to each Additional Purchaser, and each Additional Purchaser shall purchase, the Series B Notes to be purchased by such Additional Purchaser at the Series B Closing as specified in Schedule A.

------

&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;Each Additional Purchaser represents and warrants that the representations and warranties set forth in Section 6 of the Note Purchase Agreement are true and correct in all material respects on the date hereof with respect to the purchase of the Series B Notes by such Additional Purchaser as if each reference to "Notes," "Closing" and "Purchaser" set forth therein was modified to refer the "Series B Notes," the "Series B Closing" and the "Additional Purchaser" and each reference to "this Agreement" therein was modified to refer to the Note Purchase Agreement as supplemented by this Supplement.

&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;The Company and each Additional Purchaser agree to be bound by and comply with the terms and provisions of the Note Purchase Agreement (as modified and supplemented by this Supplement) as fully and completely as if such Additional Purchaser were an original signatory to the Note Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;8. &nbsp;&nbsp;&nbsp;&nbsp;This Supplement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would permit the application of the laws of a jurisdiction other than such State.

&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;This Supplement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Delivery of an electronic signature to, or a signed copy of, this Supplement by facsimile, email or other electronic transmission shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes. The parties agree to electronic contracting and signatures with respect to this Supplement. Delivery of an electronic signature to, or a signed copy of, this any Supplement by facsimile, email or other electronic transmission shall be fully binding on the parties to the same extent as the delivery of the signed originals and shall be admissible into evidence for all purposes. The words "execution," "execute", "signed," "signature," and words of like import in or related to any document to be signed in connection with this Supplement shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Company, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

The execution hereof shall constitute a contract between the Company and the Additional Purchasers for the uses and purposes hereinabove set forth, and this agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement.

------

**Information Relating to Additional Purchasers**

Schedule A

[INTENTIONALLY OMITTED]

------

MAIN STREET CAPITAL CORPORATION

---

| | |
|:---|:---|
| By: | /s/ Jesse E. Morris |
| Name: | Jesse E. Morris |
| Title: | Chief Financial Officer |

---

[*Signature Page to First Supplement to Master Note Purchase Agreement*]

------

Accepted as of February 2, 2023

SUN LIFE ASSURANCE COMPANY OF CANADA

---

| | |
|:---|:---|
| By: | /s/ David Fletcher |
| Name: | David Fletcher |
| Title: | Managing Director, Private Fixed Income |

---

---

| | |
|:---|:---|
| By: | /s/ Russell Goldenberg |
| Name: | Russel Goldenberg |
| Title: | Senior Director, Private Fixed Income |

---

SUN LIFE ASSURANCE COMPANY OF CANADA, acting through its U.S. Branch

---

| | |
|:---|:---|
| By: | /s/ Andrew Kleeman |
| Name: | Andrew Kleeman |
| Title: | Senior Managing Director |

---

---

| | |
|:---|:---|
| By: | /s/ David Belanger |
| Name: | David Belanger |
| Title: | Managing Director |

---

[*Signature Page to First Supplement to Master Note Purchase Agreement*]

------

Accepted as of February 2, 2023

SOMERSET REINSURANCE LTD., as Reinsurer and Authorized Party, on behalf of BANNER LIFE INSURANCE COMPANY

By:&nbsp;&nbsp;&nbsp;&nbsp;Sun Life Capital Management (U.S.) LLC, its Investment Adviser

---

| | |
|:---|:---|
| By: | /s/ Andrew Kleeman |
| Name: | Andrew Kleeman |
| Title: | Senior Managing Director |

---

---

| | |
|:---|:---|
| By: | /s/ David Belanger |
| Name: | David Belanger |
| Title: | Managing Director |

---

SOMERSET REINSURANCE LTD., as Reinsurer and Authorized Party, on behalf of BETTERLIFE

By:&nbsp;&nbsp;&nbsp;&nbsp;Sun Life Capital Management (U.S.) LLC, its Investment Adviser

---

| | |
|:---|:---|
| By: | /s/ Andrew Kleeman |
| Name: | Andrew Kleeman |
| Title: | Senior Managing Director |

---

---

| | |
|:---|:---|
| By: | /s/ David Belanger |
| Name: | David Belanger |
| Title: | Managing Director |

---

[*Signature Page to First Supplement to Master Note Purchase Agreement*]

------

Accepted as of February 2, 2023

GREAT AMERICAN INSURANCE COMPANY

---

| | |
|:---|:---|
| By: | /s/ Stephen C. Beraha |
| Name: | Stephen C. Beraha |
| Title: | Assistant Vice President |

---

&nbsp;&nbsp;&nbsp;&nbsp;

NATIONAL INTERSTATE INSURANCE COMPANY

---

| | |
|:---|:---|
| By: | /s/ Stephen C. Beraha |
| Name: | Stephen C. Beraha |
| Title: | Assistant Vice President |

---

[*Signature Page to First Supplement to Master Note Purchase Agreement*]

------

**Exhibit a**

**Supplemental Representations**

The Company represents and warrants to each Additional Purchaser that except as hereinafter set forth in this Exhibit A, each of the representations and warranties set forth in Section 5 of the Note Purchase Agreement (other than representations and warranties that apply solely to a specific earlier date (other than the Series A Closing Date) which shall be true as of such earlier date and other than the Section references hereinafter set forth) is true and correct in all material respects as of the date hereof with respect to the Series B Notes with the same force and effect as if each reference to "the Notes" set forth therein was modified to refer to the "Series B Notes" and each reference to "this Agreement" therein was modified to refer to the Note Purchase Agreement as supplemented by the First Supplement. The Section references hereinafter set forth correspond to the similar sections of the Note Purchase Agreement which are supplemented hereby:

**Section 5.3.&nbsp;&nbsp;&nbsp;&nbsp;Disclosure.** (a) This Agreement and the financial statements listed in Schedule 5.5 (as may be updated by the Company for each Closing) and the documents, certificates or other writings delivered to the Purchasers by or on behalf of the Company (other than financial projections, pro forma financial information and other forward-looking information referenced in Section 5.3(b), information relating to third parties and general economic information) prior to January 19, 2023 in connection with the transactions contemplated hereby and identified in Schedule 5.3 (this Agreement and such documents, certificates or other writings and such financial statements delivered to each Purchaser being referred to, collectively, as the **"Disclosure Documents"**), taken as a whole, did not, as of January 19, 2023 contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made. Except as disclosed in the Disclosure Documents, since January 19, there has been no change in the financial condition, operations, business or properties of the Company or any Subsidiary except changes that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. There is no fact known to the Company that would reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents (and after taking account all updates thereto and the same having been delivered to the Purchasers).

&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;All financial projections, pro forma financial information and other forward-looking information which has been delivered to each Purchaser by or on behalf of the Company in connection with the transactions contemplated by this Agreement are based upon good faith assumptions and, in the case of financial projections and pro forma financial information of the Company, good faith estimates, in each case, believed to be reasonable at the time made, it being recognized that (i) such financial information as it relates to future events is subject to significant and inherent uncertainty and contingencies (many of which are beyond the control of the Company) and that no assurance can be given that such financial information will be realized, and are therefore not to be viewed as fact, and (ii) actual results during the period or periods covered by such financial information may materially differ from the results set forth therein.

**Section 5.4.&nbsp;&nbsp;&nbsp;&nbsp;Organization and Ownership of Shares of Subsidiaries; Affiliates**. (a) Schedule 5.4 (as may be updated by the Company for each Closing) contains (except as noted therein) complete and correct lists as of the date of the Series B Closing of (i) the Company's Subsidiaries, showing, as to each Subsidiary, the name thereof, the jurisdiction of its organization, the percentage of shares of each class of its capital stock or similar equity interests

------

outstanding owned by the Company and each other Subsidiary and whether such Subsidiary is a Subsidiary Guarantor and (ii) the Company's directors and senior officers.

**Section 5.5.&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements**. The Company has delivered to each Purchaser copies of the financial statements of the Company and its consolidated subsidiaries. All of such financial statements (including in each case the related schedules and notes, but excluding all financial projections, pro forma financial information and other forward-looking information) fairly present in all material respects the consolidated financial position of the Company and its consolidated subsidiaries as of the respective dates specified in such Schedule and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments and lack of footnotes).&nbsp;&nbsp;&nbsp;&nbsp;

**Section 5.13.&nbsp;&nbsp;&nbsp;&nbsp;Private Offering by the Company**. Neither the Company nor anyone acting on its behalf has offered the Series B Notes or any substantially similar debt Securities for sale to, or solicited any offer to buy the Series B Notes or any substantially similar debt Securities from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and not more than fifteen (15) other Institutional Investors, each of which has been offered the Series B Notes at a private sale for investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Series B Notes to the registration requirements of section 5 of the Securities Act or to the registration requirements of any Securities or blue sky laws of any applicable jurisdiction.

**Section 5.14.&nbsp;&nbsp;&nbsp;&nbsp;Use of Proceeds; Margin Regulations**. The Company will apply the proceeds of the sale of the Series B Notes hereunder for the general corporate purposes of the Company and its subsidiaries, including to make investments, repay existing debt and make distributions permitted by this Agreement. No part of the proceeds from the sale of the Series B Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any Securities under such circumstances as to involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not constitute more than 25% of the value of the consolidated assets of the Company and its subsidiaries and the Company does not have any present intention that margin stock will constitute more than 25% of the value of such assets. As used in this Section, the terms **"margin stock"** and **"purpose of buying or carrying"** shall have the meanings assigned to them in said Regulation U.

**Section 5.15.&nbsp;&nbsp;&nbsp;&nbsp;Existing Indebtedness; Future Liens.** (a) Except as described therein, Schedule 5.15 (as may be updated by the Company for each Closing) sets forth a complete and correct list as of February 2, 2023 of all outstanding Material Indebtedness for borrowed money of the Company and its Subsidiaries (*provided* that the aggregate amount of all Indebtedness for borrowed money not listed on Schedule 5.15 does not exceed $100,000,000) as of February 2, 2023 since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Material Indebtedness of the Company or its Subsidiaries. As of February 2, 2023 neither the Company nor any Subsidiary (other than Immaterial Subsidiaries) is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and, to the knowledge of the Company, no event or condition exists with respect to any Material Indebtedness of the Company or any Subsidiary (other than Immaterial Subsidiaries) that would permit (or that with notice or the lapse of time, or both, would permit)

------

one or more Persons to cause such Indebtedness to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

**Section 5.16.&nbsp;&nbsp;&nbsp;&nbsp;Foreign Assets Control Regulations, Etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Company nor any Controlled Entity (i) is a Blocked Person, (ii) has been notified that its name appears or may in the future appear on a State Sanctions List or (iii) is a target of sanctions that have been imposed by the United Nations or the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;Neither the Company nor any Controlled Entity (i) has violated, been found in violation of, or been charged or convicted under, any applicable Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws or (ii) to the Company's knowledge, is under investigation by any Governmental Authority for possible violation of any Economic Sanctions Laws, Anti-Money Laundering Laws or Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;No part of the proceeds from the sale of the Notes hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;constitutes or will constitute funds obtained on behalf of any Blocked Person or will otherwise be used by the Company or any Controlled Entity, directly or indirectly, (A) in connection with any investment in, or any transactions or dealings with, any Blocked Person, (B) for any purpose that would cause any Purchaser to be in violation of any Economic Sanctions Laws or (C) otherwise in violation of any Economic Sanctions Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;will be used, directly or indirectly, in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Money Laundering Laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)&nbsp;&nbsp;&nbsp;&nbsp;will be used, directly or indirectly, for the purpose of making any improper payments, including bribes, to any Governmental Official or commercial counterparty in order to obtain, retain or direct business or obtain any improper advantage, in each case which would be in violation of, or cause any Purchaser to be in violation of, any applicable Anti-Corruption Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;The Company has established procedures and controls which it reasonably believes are adequate (and otherwise comply with applicable law) to ensure that the Company and each Controlled Entity is and will continue to be in compliance with all applicable Economic Sanctions Laws, Anti-Money Laundering Laws and Anti-Corruption Laws.

**Section 10.4.&nbsp;&nbsp;&nbsp;&nbsp;Economic Sanctions, Etc.** The Company will not, and will not permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing or transaction involving the proceeds of the Notes) with any Person if such investment, dealing or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any Economic Sanctions Laws.

------

<u>Defined Terms</u>. For purpose of this <u>Exhibit A</u>, the following terms have the respective meanings assigned to them:

"**Canada Blocked Person**" means (i) a "terrorist group" as defined for the purposes of Part II.1 of the Criminal Code (Canada), as amended or (ii) a Person identified in or pursuant to (w) Part II.1 of the Criminal Code (Canada), as amended or (x) the Proceeds of Crime (Money Laundering) and Terrorist Finance Act, as amended or (y) the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), as amended or (z) regulations or orders promulgated pursuant to the Special Economic Measures Act (Canada), as amended, the United Nations Act (Canada), as amended, or the Freezing Assets of Corrupt Foreign Officials Act (Canada), as amended, in any case pursuant to this clause (ii) as a Person in respect of whose property or benefit a holder of Notes would be prohibited from entering into or facilitating a related financial transaction.

"**Canadian Economic Sanctions Laws**" means those laws, including enabling legislation, orders-in-council or other regulations administered and enforced by Canada or a political subdivision of Canada pursuant to which economic sanctions have been imposed on any Person, entity, organization, country or regime, including Part II.1 of the Criminal Code (Canada), as amended, the Special Economic Measures Act (Canada), as amended, the Proceeds of Crime (Money Laundering) and Terrorist Finance Act, as amended, the Justice for Victims of Corrupt Foreign Officials Act (Sergei Magnitsky Law), as amended, the United Nations Act (Canada), as amended, the Export and Import Permits Act (Canada), as amended, and the Freezing Assets of Corrupt Foreign Officials Act (Canada), as amended, and including all regulations promulgated under any of the foregoing, or any other similar sanctions program or action.

"**Economic Sanctions Laws**" means U.S. Economic Sanctions Laws or Canadian Economic Sanctions Laws.

"**Blocked Person**" means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Canada Blocked Person, (c) a Person, entity, organization, country or regime that is blocked or a target of sanctions that have been imposed under Economic Sanctions Laws or (d) a Person that is an agent, department or instrumentality of, or is otherwise beneficially owned by, controlled by or acting on behalf of, directly or indirectly, any Person, entity, organization, country or regime described in clause (a), (b) or (c).

------

**Exhibit b**

**Amendments to the Note Purchase Agreement**

As set forth in this Exhibit B, each of the specified sections of the Note Purchase Agreement shall be amended and restated in its entirety, effective as of the date hereof, to read as follows:

**<u>Section 4.1(l):</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;**Rating.** The relevant Notes shall have received a Rating of "BBB-" (or its equivalent) or better by a Rating Agency and if such Rating is a Private Rating, the related Private Rating Rationale Report with respect to such Private Rating.

**<u>Section 9.10:</u>**

**Rating Confirmation.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants and agrees that, at its sole cost and expense, it shall cause to be maintained at all times a Rating from at least one Rating Agency that indicates that it will monitor the rating on an ongoing basis. No later than December 23 of each year (beginning December 23, 2022), and promptly upon any change in the Rating, the Company further covenants and agrees it shall provide a notice to each of the holders of the Notes sent in the manner provided in Section 18 with respect to all then current Ratings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At any time that the Rating maintained pursuant to clause (a) above is not a public rating, the Company will provide to each holder of a Note (x) at least annually (on or before each anniversary of the date of the Closing) and (y) promptly upon any change in such Rating, an updated Private Rating evidencing such Rating and an updated Private Rating Rationale Report with respect to such Rating. In addition to the foregoing information, and any information specifically required to be included in any Private Rating or Private Rating Rationale Report (as set forth in the respective definitions thereof), if the SVO or any other Governmental Authority having jurisdiction over any holder of any Notes from time to time requires any additional information with respect to the Rating of the Notes, the Company shall use commercially reasonable efforts to procure such information from the Rating Agency.

**<u>Schedule A:</u>**

"**Disqualified Equity Interests**" means any Equity Interest which, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures (excluding any maturity as the result of an optional redemption by the issuer thereof) or is mandatorily redeemable (other than for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the holder thereof (other than for Qualified Equity Interests), in whole or in part, on or prior to 91 days following the Maturity Date at the time such Equity Interests is issued (it being understood that if any such redemption is in part, only such part coming into effect prior to 91 days

------

following the Maturity Date shall constitute Disqualified Equity Interests), (b) is or becomes convertible into or exchangeable (unless at the sole option of the issuer thereof) for (i) debt securities or (ii) any Equity Interests that would constitute Disqualified Equity Interests, in each case at any time on or prior to 91 days following the Maturity Date at the time such Equity Interests is issued, (c) contains any mandatory repurchase obligation or any other repurchase obligation at the option of the holder thereof (other than for Qualified Equity Interests), in whole or in part, which may come into effect prior to 91 days following the Maturity Date at the time such Equity Interests is issued (it being understood that if any such repurchase obligation is in part, only such part coming into effect prior to 91 days following the Maturity Date shall constitute Disqualified Equity Interests) or (d) requires scheduled payments of dividends in cash on or prior to 91 days following the Maturity Date at the time such Equity Interests is issued; provided that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests is convertible, exchangeable or exercisable) the right to require the issuer thereof to redeem such Equity Interests upon the occurrence of any Change in Control occurring prior to 91 days following the Maturity Date at the time such Equity Interests is issued shall not constitute Disqualified Equity Interests if (x) such Equity Interests provides that the issuer thereof will not redeem any such Equity Interests pursuant to such provisions prior to the date that the Notes have been repaid in full (other than contingent indemnification obligations) (the "Termination Date") or (y) such redemption is subject to events that would cause the Termination Date to occur.

"**GAAP**" means (a) generally accepted accounting principles as in effect from time to time in the United States of America and (b) for purposes of Section 9.7, with respect to any Subsidiary that is an Obligor, generally accepted accounting principles (including International Financial Reporting Standards, as applicable) as in effect from time to time in the jurisdiction of organization of such Obligor.

"**Rating**" means a rating of a Series or tranche of Notes, which rating shall (a) specifically describe the Notes, including their interest rate, maturity and Private Placement Number; and (b) in the event that such Rating is a Private Rating, be accompanied by the related Private Rating Rationale Report with respect to such Private Rating; and (c) be issued by a Rating Agency.

The following additional terms are to be included in Schedule A, in alphabetical order, consistent with the existing terms set forth in Schedule A:

"**Private Rating**" means a letter issued by a Rating Agency in connection with any private debt rating for the Notes, which (a) sets forth the Rating for the Notes, (b) refers to the Private Placement Number issued by the PPN CUSIP Unit of CUSIP Global Services in respect of the Notes, (c) addresses the likelihood of payment of both principal and interest on the Notes (which requirement shall be deemed satisfied if either (x) such letter includes confirmation that the Rating reflects the Rating Agency's assessment of the Company's ability to make timely payment of principal and interest on the Notes or a similar statement or (y) such letter is silent as to the Rating Agency's assessment of the likelihood of payment of both principal and interest and does not include any indication to the contrary), (d) includes such other information describing

------

the relevant terms of the Notes as may be required from time to time by the SVO or any other Governmental Authority having jurisdiction over any holder of any Notes, and (e) shall not be subject to confidentiality provisions or other restrictions which would prevent or limit the letter from being shared with the SVO or any other Governmental Authority having jurisdiction over nay holder of any Notes.

"**Private Rating Rationale Report**" means, with respect to any Private Rating, a report issued by the Rating Agency in connection with such Private Rating setting forth an analytical review of the Notes explaining the transaction structure, methodology relied upon, and, as appropriate, analysis of the credit, legal, and operational risks and mitigants supporting the assigned Rating for the Notes, in each case, on the letterhead of the Rating Agency or posted on its controlled website and generally consistent with the work product that a Rating Agency would produce for a similarly publicly rated security and otherwise in form and substance generally required by the SVO or any other regulatory or other Governmental Authority having jurisdiction over any holder of any Notes from time to time. Such report shall not be subject to confidentiality provisions or other restrictions which would prevent or limit the report from being shared with the SVO or any regulatory or other Governmental Authority having jurisdiction over any holder of any Notes.

The following defined term to be deleted from Schedule A:

"**Specified Credit Facility**" means any Material Credit Facility that is unsecured and in respect of which the Company is a borrower or a full recourse guarantor.

## Exhibit 14.1

Exhibit 14.1

**MAIN STREET CAPITAL CORPORATION**

**CODE OF BUSINESS** 

**CONDUCT AND ETHICS**

November 2020

------

**CODE OF BUSINESS CONDUCT** 

**AND ETHICS**

**TABLE OF CONTENTS**

<u>Page</u>

---

| | |
|:---|:---|
| [Introduction](#i13cf327a6fa74511a84137f256ab1ace_7) | [1](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Purpose of the Code](#i13cf327a6fa74511a84137f256ab1ace_7) | [1](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Conflicts of Interest](#i13cf327a6fa74511a84137f256ab1ace_7) | [1](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Corporate Opportunities](#i13cf327a6fa74511a84137f256ab1ace_7) | [2](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Confidentiality](#i13cf327a6fa74511a84137f256ab1ace_7) | [2](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Fair Dealing](#i13cf327a6fa74511a84137f256ab1ace_7) | [2](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Protection and Proper Use of Company Assets](#i13cf327a6fa74511a84137f256ab1ace_7) | [3](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Compliance with Applicable Laws, Rules and Regulations](#i13cf327a6fa74511a84137f256ab1ace_7) | [3](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Equal Opportunity, Harassment](#i13cf327a6fa74511a84137f256ab1ace_7) | [4](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Political Activities](#i13cf327a6fa74511a84137f256ab1ace_7) | [4](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Loans](#i13cf327a6fa74511a84137f256ab1ace_7) | [4](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Accuracy of Company Records](#i13cf327a6fa74511a84137f256ab1ace_7) | [4](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Retaining Business Communications](#i13cf327a6fa74511a84137f256ab1ace_7) | [5](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Media Relations](#i13cf327a6fa74511a84137f256ab1ace_7) | [5](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Internet and E-Mail Policy](#i13cf327a6fa74511a84137f256ab1ace_7) | [6](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Reporting Violations and Complaint Handling](#i13cf327a6fa74511a84137f256ab1ace_7) | [6](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Administration of the Code](#i13cf327a6fa74511a84137f256ab1ace_7) | [7](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Sanctions for Code Violations](#i13cf327a6fa74511a84137f256ab1ace_7) | [7](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Application/Waivers](#i13cf327a6fa74511a84137f256ab1ace_7) | [7](#i13cf327a6fa74511a84137f256ab1ace_7) |
| [Revisions and Amendments](#i13cf327a6fa74511a84137f256ab1ace_7) | [7](#i13cf327a6fa74511a84137f256ab1ace_7) |

---

**<u>Appendices</u>**

Code Acknowledgment &nbsp;&nbsp;&nbsp;&nbsp; A-1

&nbsp;&nbsp;&nbsp;&nbsp;2

------

**CODE OF BUSINESS CONDUCT AND ETHICS**

**<u>Introduction</u>**

Ethics are important to Main Street Capital Corporation, an internally managed business development company (the "***Company***", "***we***", "***us***", or "***our***"), and to its management team. We are committed to the highest ethical standards and to conducting our business with the highest level of integrity. This code of business conduct and ethics (the "***Code***") has been adopted by the Company in order to establish applicable policies, guidelines, and procedures that promote ethical practices and conduct by the Company and all of its employees, officers, and directors.

All officers, directors and employees of the Company are responsible for maintaining this level of integrity and for complying with the policies contained in this Code. If you have a question or concern about what is proper conduct for you or anyone else, please raise these concerns with any member of management, or follow the procedures outlined in applicable sections of this Code.

**<u>Purpose of the Code</u>**

This Code is intended to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• help you recognize ethical issues and take the appropriate steps to resolve these issues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• deter ethical violations and avoid any abuse of position of trust and responsibility;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain confidentiality of our business activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assist you in complying with applicable securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assist you in reporting any unethical or illegal conduct; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• reaffirm and promote our commitment to a corporate culture that values honesty and accountability.

All employees, as a condition of employment or continued employment, will acknowledge in writing that they have received a copy of this Code, read it, and understand that the Code contains our expectations regarding their conduct. All employees will receive any updates and updated versions of this Code and will be required to read and acknowledge such updates.

&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.Conflicts of Interest

You must avoid any conflict, or the appearance of a conflict, between your personal interests and our interests. A conflict exists when your personal interest in any way interferes with our interests, or when you take any action or have any interest that may make it difficult for you to perform your job objectively and effectively. For example, a conflict of interest probably exists if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you cause us to enter into business relationships with you or a member of your family, or invest in companies affiliated with you or a member of your family;

&nbsp;&nbsp;&nbsp;&nbsp;1

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you use any non-public information about us, our customers or our other business partners for your personal gain, or the gain of a member of your family; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• you use or communicate confidential information obtained in the course of your work for your or another's personal benefit.

**<u>Corporate Opportunities</u>**

Each of us has a duty to advance the legitimate interests of the Company when the opportunity to do so presents itself. Therefore, you may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• take for yourself personally opportunities, including investment opportunities, discovered through the use of your position with us, or through the use of our property or information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• use our property, information, or position for your personal gain or the gain of a family member; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compete, or prepare to compete, with us.

**<u>Confidentiality</u>**

You must not disclose confidential information regarding us, our affiliates, our lenders, our clients, or our other business partners, unless disclosure is authorized or required by law. Confidential information includes all non-public information that might be harmful to, or useful to the competitors of, the Company, our affiliates, our lenders, our clients, or our other business partners. Even after you leave the Company, this obligation continues until the information becomes publicly available.

**<u>Fair Dealing</u>**

You must endeavor to deal fairly with our customers, suppliers and business partners, or any other companies or individuals with whom we do business or come into contact with, including fellow employees and our competitors. You must not take unfair advantage of these or other parties by means of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• manipulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• concealment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• abuse of privileged information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• misrepresentation of material facts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other unfair-dealing practice.

**<u>Protection and Proper Use of Company Assets</u>**

Our assets are to be used only for legitimate business purposes. You should protect our assets and ensure that they are used efficiently.

Incidental personal use of telephones, fax machines, copy machines, personal computers and similar equipment is generally allowed if there is no significant added cost to us, it does not interfere with your work duties, and is not related to an illegal activity or to any outside business.

&nbsp;&nbsp;&nbsp;&nbsp;2

------

**<u>Compliance with Applicable Laws, Rules and Regulations</u>**

Each of us has a duty to comply with all laws, rules and regulations that apply to our business. Highlighted below are some of the key compliance guidelines that must be followed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Insider trading.** It is against the law to buy or sell securities using material information that is not available to the public. Individuals who give this "inside" information to others may be liable to the same extent as the individuals who trade while in possession of such information. You must not trade in our securities, or the securities of our affiliates, our lenders, our clients, or our other business partners while in the possession of "inside" information. All employees are required to be familiar and comply with our Insider Trading Policy and Procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "**Whistleblower**" **protections.** It is against the law to discharge, demote, suspend, threaten, harass, or discriminate in any manner against an employee who provides information or otherwise assists in investigations or proceedings relating to violations of federal securities laws or other federal laws prohibiting fraud against stockholders. You must not discriminate in any way against an employee who engages in these "whistleblower" activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Investment Company Act requirements.** A separate code of ethics has been established to comply with Rule 17j-1 under the Investment Company Act of 1940 and is applicable to those persons designated in such code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Document Retention.** You must adhere to appropriate procedures governing the retention and destruction of records consistent with applicable laws, regulations and our policies. You may not destroy, alter or falsify any document that may be relevant to a threatened or pending lawsuit or governmental investigation.

Please talk to our Chief Compliance Officer if you have any questions about how to comply with the above regulations and other laws, rules and regulations.

In addition, we expect you to comply with all of our policies and procedures that apply to you. We may modify or update our policies and procedures in the future, and may adopt new policies and procedures from time to time. You are also expected to observe the terms of any confidentiality agreement, employment agreement or other similar agreement that applies to you.

**<u>Equal Opportunity, Harassment</u>**

&nbsp;&nbsp;&nbsp;&nbsp;We are committed to providing equal opportunity in all of our employment practices including selection, hiring, promotion, transfer, and compensation of all qualified applicants and employees without regard to race, color, sex or gender, gender identity, sexual orientation, religion, age, national origin, handicap, disability, citizenship status, or any other status protected by law. With this in mind, there are certain behaviors that will not be tolerated. These include harassment, violence, intimidation, and discrimination of any kind involving race, color, religion, gender, gender identity, sexual orientation, age, national origin, citizenship status, handicap, disability, marital status, or any other status protected by law.

**<u>Political Activities</u>**

The Company encourages its employees to be actively involved in the civic affairs of the communities in which they live. When speaking on public issues, however, employees should do so only as individual citizens of the community and must be careful not to create the impression that they are acting for, or representing the views of, the Company. Additionally, the Company

&nbsp;&nbsp;&nbsp;&nbsp;3

------

and its employees are prohibited from making any contribution or giving a gift to a state or local political candidate, official, party or organization that would be prohibited by applicable law. In order for the Company to determine whether a gift or political contribution may be prohibited, employees are required to provide advance notice to the Chief Compliance Officer in advance of a proposed contribution.

The Chief Compliance Officer retains discretion to monitor all business activities between the Company and the provider or recipient of any gift or political contribution in connection with this policy. Any questions regarding this policy or the application of this policy should be directed to the Chief Compliance Officer or Chief Executive Officer.

**<u>Loans</u>**

&nbsp;&nbsp;&nbsp;&nbsp;No employee may borrow funds from or become indebted to any person, business or company having business dealings or a relationship with the Company, except with respect to customary personal loans (<u>e.g.</u>, home mortgage loans, automobile loans, lines of credit, etc.), unless the arrangement is disclosed in writing and receives prior written approval from the Chief Compliance Officer of the Company. No employee may use the Company's names, position in a particular market or goodwill to receive any benefit on loan transactions without the prior express written consent of the Chief Compliance Officer of the Company.

**<u>Accuracy of Company Records</u>**

&nbsp;&nbsp;&nbsp;&nbsp;We require honest and accurate recording and reporting of information in order to make responsible business decisions. This includes such data as quality, safety, and personnel records, as well as financial records.

&nbsp;&nbsp;&nbsp;&nbsp;All financial books, records and accounts must accurately reflect transactions and events, and conform both to required accounting principles and to our system of internal controls. No false or artificial entries may be made.

**<u>Retaining Business Communications</u>**

&nbsp;&nbsp;&nbsp;&nbsp;The law requires us to maintain certain types of corporate records, usually for specified periods of time. Failure to retain those records for those minimum periods could subject us to penalties and fines, cause the loss of rights, obstruct justice, place us in contempt of court, or seriously disadvantage us in litigation.

&nbsp;&nbsp;&nbsp;&nbsp;From time to time we establish retention or destruction policies in order to ensure legal compliance. We expect you to fully comply with any published records retention or destruction policies, provided that you should note the following exception: If you believe, or we inform you, that our records are relevant to any litigation or governmental action, or any potential litigation or action, then you must preserve those records until we determine the records are no longer needed. This exception supersedes any previously or subsequently established destruction policies for those records. If you believe that this exception may apply, or have any questions regarding the possible applicability of that exception, please contact our Chief Compliance Officer.

**<u>Media Relations</u>**

We must speak with a unified voice in all dealings with the press and other media. As a result, our Chief Executive Officer, President, Chief Financial Officer, Executive Chairman or other designated persons will serve as our contact persons for media seeking information about

&nbsp;&nbsp;&nbsp;&nbsp;4

------

the Company. Any requests from the media must be referred to our Chief Executive Officer, President, Chief Financial Officer, Executive Chairman or other designated persons.

**<u>Intellectual Property Information</u>**

Information generated in our business is a valuable asset. Protecting this information plays an important role in our growth and ability to compete. Such information includes business and research plans; objectives and strategies; trade secrets; unpublished financial information; salary and benefits data; lender and other business partner lists. Employees who have access to our intellectual property information are obligated to safeguard it from unauthorized access and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not disclose this information to persons outside of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not use this information for personal benefit or the benefit of persons outside of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not share this information with other employees except on a legitimate "need to know" basis.

**<u>Internet and E-Mail Policy</u>**

&nbsp;&nbsp;&nbsp;&nbsp;We provide an e-mail system and Internet access to our employees to help them do their work. You may use the e-mail system and the Internet only for legitimate business purposes in the course of your duties. Incidental and occasional personal use is permitted, but never for personal gain or any improper use. Further, you are prohibited from discussing or posting information regarding the Company in any external electronic forum, including Internet chat rooms or electronic bulletin boards or social media sites.

**<u>Reporting Violations and Complaint Handling</u>**

You are responsible for compliance with the rules, standards and principles described in this Code. In addition, you should be alert to possible violations of the Code by our employees, officers and directors, and you are expected to report a violation promptly. Normally, reports should be made to one's immediate supervisor. Under some circumstances, it may be impractical or you may feel uncomfortable raising a matter with your supervisor. In those instances, you are encouraged to report through the employee hotline or contact our Chief Compliance Officer who will investigate and report the matter to our Chief Executive Officer and/or Board of Directors, as the circumstance dictates. You will also be expected to cooperate in an investigation of a violation.

Anyone who has a concern about our conduct, the conduct of an officer of the Company or our accounting, internal accounting controls or auditing matters, may communicate that concern through the employee hotline or to the Audit Committee of the Board of Directors by direct communication with our Chief Compliance Officer or by email or in writing. All reported concerns shall be forwarded to the Audit Committee and will be simultaneously addressed by our Chief Compliance Officer in the same way that other concerns are addressed by us. The status of all outstanding concerns forwarded to the Audit Committee will be reported on a quarterly basis by our Chief Compliance Officer. The Audit Committee may direct that certain matters be presented to the full board and may also direct special treatment, including the retention of outside advisors or counsel, for any concern reported to it.

All reports will be investigated and whenever possible, requests for confidentiality shall be honored. And, while anonymous reports will be accepted, please understand that anonymity

&nbsp;&nbsp;&nbsp;&nbsp;5

------

may hinder or impede the investigation of a report. All cases of questionable activity or improper actions will be reviewed for appropriate action, discipline or corrective actions. Whenever possible, we will keep confidential the identity of employees, officers or directors who are accused of violations, unless or until it has been determined that a violation has occurred.

**There will be no reprisal, retaliation or adverse action taken against any employee who, in good faith, reports or assists in the investigation of, a violation or suspected violation, or who makes an inquiry about the appropriateness of an anticipated or actual course of action. For the avoidance of doubt, nothing in this Code shall be interpreted as impeding an employee from communicating directly with the staff of the Securities and Exchange Commission about suspected securities law violations.**

In the case of a confidential, anonymous submission, employees should communicate their concerns through the employee hotline or in writing and forward them in a sealed envelope to the Chair of Audit Committee, in care of our Chief Compliance Officer, such envelope to be labeled with a legend such as: "To be opened by the Audit Committee only."

**<u>Administration of the Code</u>**

The Chief Compliance Officer has overall responsibility for administering the Code and reporting on the administration of and compliance with the Code and related matters to our Board of Directors.

**<u>Sanctions for Code Violations</u>**

All violations of the Code will result in appropriate corrective action, up to and including dismissal. If the violation involves potentially criminal activity, the individual or individuals in question will be reported, as warranted, to the appropriate authorities.

**<u>Application/Waivers</u>**

All of our directors, officers and employees are subject to this Code.

Any amendment or waiver of the Code for an executive officer or member of our Board of Directors must be made by our Board of Directors and will be publicly disclosed in the manner required pursuant to Item 5.05 of Form 8-K.

**<u>Revisions and Amendments</u>**

This Code may be revised, changed or amended at any time by our Board of Directors. Following any material revisions or updates, an updated version of this Code will be distributed to you, and will supersede the prior version of this Code effective upon distribution. We may ask you to sign an acknowledgement confirming that you have read and understood the revised version of the Code, and that you agree to comply with the provisions.

&nbsp;&nbsp;&nbsp;&nbsp;6

------

**<u>APPENDIX A</u>**

**Main Street Capital Corporation**

**(the** "***Company***"**)**

**Acknowledgment Regarding** 

**Code of Business Conduct and Ethics**

<u>*This acknowledgment is to be signed and returned to our Chief Compliance Officer and will be retained as part of your permanent personnel file.*</u>

I have received a copy of Company's Code of Business Conduct and Ethics, read it, and understand that the Code contains the expectations of the Company regarding conduct. I agree to observe the policies and procedures contained in the Code of Business Conduct and Ethics and have been advised that, if I have any questions or concerns relating to such policies or procedures, I understand that I have an obligation to report to my supervisor, to the Chief Compliance Officer or through the employee hotline, any suspected violations of the Code of which I am aware. I also understand that the Code is issued for informational purposes and that it is not intended to create, nor does it represent, a contract of employment.

---

| | |
|:---|:---|
| | Name (Printed) |
| | Signature |
| | Date |
| Date Received: |  |
| Reviewed By: |  |
| Date: |  |

---

<u>*The failure to read and/or sign this acknowledgment in no way relieves you of your responsibility to comply with the Company's Code of Business Conduct and Ethics.*</u>

**Note** – the form shown above is for illustrative purposes and is representative of the certification provided by employees of the Company using the Company's compliance portal, MyComplianceOffice, accessible to employees of the Company. The form itself is not typically used in practice, but it would be an acceptable, temporary alternative if the compliance portal was not accessible.<br>

## Exhibit 21.1

**Exhibit 21.1**

**LIST OF SUBSIDIARIES**

Main Street Capital Partners, LLC, a Delaware limited liability company

Main Street Mezzanine Management, LLC, a Delaware limited liability company

Main Street Equity Interests, Inc., a Delaware corporation

Main Street Mezzanine Fund, LP, a Delaware limited partnership

Main Street Capital III GP, LLC, a Delaware limited liability company

Main Street Capital III, LP, a Delaware limited partnership

Main Street CA Lending, LLC, a Delaware limited liability company

MS Equity Holdings, Inc., a Delaware corporation

MS International Holdings, Inc., a Delaware corporation

MSCC Funding I, LLC, a Delaware limited liability company

## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We have issued our reports dated February 24, 2023, with respect to the consolidated financial statements, financial statement schedule and internal control over financial reporting included in the Annual Report of Main Street Capital Corporation on Form 10-K for the year ended December 31, 2022. We consent to the incorporation by reference of said reports in the Registration Statements of Main Street Capital Corporation on Form N-2ASR (File No. 333-263258) and Form S-8 (File Nos. 333-203893, 333-208643 and 333-264643).

/s/ GRANT THORNTON LLP

Houston, Texas

February 24, 2023

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION PURSUANT TO**

**RULE 13a-14(a) and 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED**

I, Dwayne L. Hyzak, certify that:

1. I have reviewed this annual report on Form 10-K for the year ended December 31, 2022 of Main Street Capital Corporation (the "registrant");

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;

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;

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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&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

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.

Dated this February 24, 2023.

---

| | |
|:---|:---|
| By: | /s/ DWAYNE L. HYZAK |
|  | Dwayne L. Hyzak |
|  | *Chief Executive Officer* |

---

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION PURSUANT TO**

**RULE 13a-14(a) and 15d-14(a) UNDER THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED**

I, Jesse E. Morris, certify that:

1. I have reviewed this annual report on Form 10-K for the year ended December 31, 2022 of Main Street Capital Corporation (the "registrant");

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;

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;

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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) 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)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&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

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.

Dated this February 24, 2023.

---

| | |
|:---|:---|
| By: | /s/ JESSE E. MORRIS |
|  | Jesse E. Morris |
|  | *Chief Financial Officer and Chief Operating Officer* |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification of Chief Executive Officer**

**Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)**

In connection with the accompanying annual report of Main Street Capital Corporation (the "Registrant") on Form 10-K for the year ended December 31, 2022 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, I, Dwayne L. Hyzak, the Chief Executive Officer of the Registrant, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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 Registrant.

---

| | |
|:---|:---|
| /s/ DWAYNE L. HYZAK | /s/ DWAYNE L. HYZAK |
| Name: | Dwayne L. Hyzak |
| Date: | February 24, 2023 |

---

## Exhibit 32.2

**Exhibit 32.2**

**Certification of Chief Financial Officer**

**Pursuant to**

**Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)**

In connection with the accompanying annual report of Main Street Capital Corporation (the "Registrant") on Form 10-K for the year ended December 31, 2022 (the "Report"), as filed with the Securities and Exchange Commission on the date hereof, I, Jesse E. Morris, the Chief Financial Officer of the Registrant, hereby certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&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;&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 Registrant.

---

| | |
|:---|:---|
| /s/ JESSE E. MORRIS | /s/ JESSE E. MORRIS |
| Name: | Jesse E. Morris |
| Date: | February 24, 2023 |

---

<br>