# EDGAR Filing Document

**Accession Number:** 0001319161
**File Stem:** 0001319161-25-000023
**Filing Date:** 2025-8
**Character Count:** 1904480
**Document Hash:** 07e3337a04551fa808e0146c1f34ce60
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001319161-25-000023.hdr.sgml**: 20250807

**ACCESSION NUMBER**: 0001319161-25-000023

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 95

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250807

**DATE AS OF CHANGE**: 20250807

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Warner Music Group Corp.
- **CENTRAL INDEX KEY:** 0001319161
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-AMUSEMENT & RECREATION SERVICES [7900]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 134271875
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32502
- **FILM NUMBER:** 251191645

**BUSINESS ADDRESS:**
- **STREET 1:** 1633 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019
- **BUSINESS PHONE:** 212-275-2000

**MAIL ADDRESS:**
- **STREET 1:** 1633 BROADWAY
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10019

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** WMG Parent Corp.
- **DATE OF NAME CHANGE:** 20050228

?xml version='1.0' encoding='ASCII'? wmg-20250630

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

<br>**FORM 10-Q**<br>

**(Mark One)**

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

**For the quarterly period ended June 30, 2025**

**OR**

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

**Commission File Number 001-32502**

<br>**Warner Music Group Corp.**<br>**(Exact name of registrant as specified in its charter)**<br>

---

| | | |
|:---|:---|:---|
| **Delaware**<br>**(State or other jurisdiction of**<br>**incorporation or organization)** |  | **13-4271875**<br>**(I.R.S. Employer**<br>**Identification No.)** |
|  | **1633 Broadway**<br>**New York, NY 10019**<br>**(Address of principal executive offices)**<br>**(212) 275-2000**<br>**(Registrant's telephone number, including area code)** |  |

---

**___________________________________________________________________________________________**

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

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A Common Stock, $0.001 par value per share | WMG | The Nasdaq Stock Market LLC |

---

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.&nbsp;&nbsp;&nbsp;&nbsp;Yes ☒&nbsp;&nbsp;&nbsp;&nbsp;No ☐

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act.)&nbsp;&nbsp;&nbsp;&nbsp;Yes ☐&nbsp;&nbsp;&nbsp;&nbsp;No ☒

As of August 4, 2025, there were 145,886,566 shares of Class A Common Stock and 375,380,313 shares of Class B Common Stock of the registrant outstanding.

------

**WARNER MUSIC GROUP CORP.**

**QUARTERLY REPORT ON FORM 10-Q**

**FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page<br>Number** |
| **[Part I.](#i2eda72d23d9e4fc38e843f0cd265cd75_10)** | **[Financial Information](#i2eda72d23d9e4fc38e843f0cd265cd75_10)** | |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_13)[1.](#i2eda72d23d9e4fc38e843f0cd265cd75_13) | <u>[Financial Statements (Unaudited)](#i2eda72d23d9e4fc38e843f0cd265cd75_13)</u> | [1](#i2eda72d23d9e4fc38e843f0cd265cd75_13) |
|  | <u>[Condensed Consolidated Balance Sheets as of](#i2eda72d23d9e4fc38e843f0cd265cd75_16)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_16)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_16)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_16)[, 2025 and September 30, 2024](#i2eda72d23d9e4fc38e843f0cd265cd75_16)</u> | [1](#i2eda72d23d9e4fc38e843f0cd265cd75_16) |
|  | <u>[Condensed Consolidated Statements of Operations for the Three and](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[Nine](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[Months Ended](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[, 2025 and](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_19)[, 2024](#i2eda72d23d9e4fc38e843f0cd265cd75_19)</u> | [2](#i2eda72d23d9e4fc38e843f0cd265cd75_19) |
|  | <u>[Condensed Consolidated Statements of Comprehensive Income for the Three and](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[Nine](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[Months Ended](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[, 2025 and](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_25)[, 2024](#i2eda72d23d9e4fc38e843f0cd265cd75_25)</u> | [3](#i2eda72d23d9e4fc38e843f0cd265cd75_25) |
|  | <u>[Condensed Consolidated Statements of Cash Flows for the Three and](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[Nine](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[Months Ended](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[, 2025 and](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_28)[, 2024](#i2eda72d23d9e4fc38e843f0cd265cd75_28)</u> | [4](#i2eda72d23d9e4fc38e843f0cd265cd75_28) |
|  | <u>[Condensed Consolidated Statements of Equity for the Three and](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[Nine](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[Months Ended](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[, 2025 and](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[June](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[3](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[0](#i2eda72d23d9e4fc38e843f0cd265cd75_31)[, 2024](#i2eda72d23d9e4fc38e843f0cd265cd75_31)</u> | [5](#i2eda72d23d9e4fc38e843f0cd265cd75_34) |
|  | <u>[Notes to Condensed Consolidated Financial Statements](#i2eda72d23d9e4fc38e843f0cd265cd75_37)</u> | [7](#i2eda72d23d9e4fc38e843f0cd265cd75_37) |
| [Item 2.](#i2eda72d23d9e4fc38e843f0cd265cd75_145) | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#i2eda72d23d9e4fc38e843f0cd265cd75_145)</u> | [23](#i2eda72d23d9e4fc38e843f0cd265cd75_145) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_163)[3.](#i2eda72d23d9e4fc38e843f0cd265cd75_163) | <u>[Quantitative and Qualitative Disclosures About Market Risk](#i2eda72d23d9e4fc38e843f0cd265cd75_163)</u> | [54](#i2eda72d23d9e4fc38e843f0cd265cd75_163) |
| [Item 4.](#i2eda72d23d9e4fc38e843f0cd265cd75_166) | <u>[Controls and Procedures](#i2eda72d23d9e4fc38e843f0cd265cd75_166)</u> | [55](#i2eda72d23d9e4fc38e843f0cd265cd75_166) |
| **[Part II.](#i2eda72d23d9e4fc38e843f0cd265cd75_169)** | **[Other Information](#i2eda72d23d9e4fc38e843f0cd265cd75_169)** |  |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_172)[1.](#i2eda72d23d9e4fc38e843f0cd265cd75_172) | <u>[Legal Proceedings](#i2eda72d23d9e4fc38e843f0cd265cd75_172)</u> | [57](#i2eda72d23d9e4fc38e843f0cd265cd75_172) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_175)[1A.](#i2eda72d23d9e4fc38e843f0cd265cd75_175) | <u>[Risk Factors](#i2eda72d23d9e4fc38e843f0cd265cd75_175)</u> | [57](#i2eda72d23d9e4fc38e843f0cd265cd75_175) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_178)[2.](#i2eda72d23d9e4fc38e843f0cd265cd75_178) | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#i2eda72d23d9e4fc38e843f0cd265cd75_178)</u> | [57](#i2eda72d23d9e4fc38e843f0cd265cd75_178) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_181)[3.](#i2eda72d23d9e4fc38e843f0cd265cd75_181) | <u>[Defaults Upon Senior Securities](#i2eda72d23d9e4fc38e843f0cd265cd75_181)</u> | [57](#i2eda72d23d9e4fc38e843f0cd265cd75_181) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_184)[4.](#i2eda72d23d9e4fc38e843f0cd265cd75_184) | <u>[Mine Safety Disclosures](#i2eda72d23d9e4fc38e843f0cd265cd75_184)</u> | [57](#i2eda72d23d9e4fc38e843f0cd265cd75_184) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_187)[5.](#i2eda72d23d9e4fc38e843f0cd265cd75_187) | <u>[Other Information](#i2eda72d23d9e4fc38e843f0cd265cd75_187)</u> | [57](#i2eda72d23d9e4fc38e843f0cd265cd75_187) |
| [Item](#i2eda72d23d9e4fc38e843f0cd265cd75_193)[6.](#i2eda72d23d9e4fc38e843f0cd265cd75_193) | <u>[Exhibits](#i2eda72d23d9e4fc38e843f0cd265cd75_193)</u> | [59](#i2eda72d23d9e4fc38e843f0cd265cd75_193) |
| <u>[Signatures](#i2eda72d23d9e4fc38e843f0cd265cd75_196)</u> | <u>[Signatures](#i2eda72d23d9e4fc38e843f0cd265cd75_196)</u> | [60](#i2eda72d23d9e4fc38e843f0cd265cd75_196) |

---

------

**PART I. FINANCIAL INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS**

**Warner Music Group Corp.**

**Condensed Consolidated Balance Sheets**

*(In millions, except share amounts which are reflected in thousands)*

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **September 30,<br>2024** |
| **Assets** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and equivalents | $527 | $694 |
| Accounts receivable, net of allowances of $24 million and $26 million | 1305 | 1255 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 101 | 99 |
| &nbsp;&nbsp;&nbsp;&nbsp;Royalty advances expected to be recouped within one year | 579 | 470 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid and other current assets | 166 | 125 |
| Total current assets | 2678 | 2643 |
| Royalty advances expected to be recouped after one year | 1075 | 874 |
| Property, plant and equipment, net of accumulated depreciation of $701 million and $615 million | 472 | 481 |
| Operating lease right-of-use assets, net | 216 | 225 |
| Goodwill | 2064 | 2021 |
| Intangible assets subject to amortization, net | 2764 | 2359 |
| Intangible assets not subject to amortization | 154 | 152 |
| Deferred tax assets, net | 46 | 52 |
| Other assets | 308 | 348 |
| Total assets | $9777 | $9155 |
| **Liabilities and Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $241 | $289 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued royalties | 2828 | 2549 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 533 | 641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 39 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities, current | 43 | 45 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 278 | 246 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 88 | 110 |
| Total current liabilities | 4050 | 3897 |
| Acquisition Corp. long-term debt | 4061 | 4014 |
| Asset-based long-term debt | 302 |  |
| Operating lease liabilities, noncurrent | 212 | 228 |
| Deferred tax liabilities, net | 204 | 195 |
| Other noncurrent liabilities | 136 | 146 |
| Total liabilities | $8965 | $8480 |
| Equity: |  |  |
| Class A common stock, $0.001 par value; 1,000,000 shares authorized, 145,887 and 142,559 shares issued and outstanding as of June 30, 2025 and September 30, 2024, respectively | $— | $— |
| Class B common stock, $0.001 par value; 1,000,000 shares authorized, 375,380 issued and outstanding as of June 30, 2025 and September 30, 2024, respectively | 1 | 1 |
| Additional paid-in capital | 2102 | 2077 |
| Accumulated deficit | (1340) | (1313) |
| Accumulated other comprehensive loss, net | (174) | (247) |
| Total Warner Music Group Corp. equity | 589 | 518 |
| Noncontrolling interest | 223 | 157 |
| Total equity | 812 | 675 |
| Total liabilities and equity | $9777 | $9155 |

---

See accompanying notes

------

**Warner Music Group Corp.**

**Condensed Consolidated Statements of Operations**

*(In millions, except share amounts which are reflected in thousands, and per share data)*

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Revenue | $1689 | $1554 | $4839 | $4796 |
| Costs and expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cost of revenue | (913) | (830) | (2598) | (2501) |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative expenses (a) | (471) | (462) | (1395) | (1384) |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring and impairments | (69) | (1) | (109) | (96) |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | (67) | (55) | (186) | (167) |
| Total costs and expenses | (1520) | (1348) | (4288) | (4148) |
| Net gain on divestitures |  | 1 |  | 32 |
| Operating income | 169 | 207 | 551 | 680 |
| Interest expense, net | (43) | (40) | (119) | (121) |
| Other (expense) income | (137) | 4 | (48) | (9) |
| (Loss) income before income taxes | (11) | 171 | 384 | 550 |
| Income tax expense | (5) | (30) | (123) | (120) |
| Net (loss) income | (16) | 141 | 261 | 430 |
| Less: Income attributable to noncontrolling interest |  | (2) | (5) | (36) |
| Net (loss) income attributable to Warner Music Group Corp. | $(16) | $139 | $256 | $394 |
| Net income (loss) per share attributable to common stockholders: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A – Basic and Diluted | $(0.03) | $0.27 | $0.49 | $0.75 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B – Basic and Diluted | $(0.03) | $0.27 | $0.49 | $0.75 |
| Weighted average common shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A – Basic and Diluted | 145878 | 141568 | 144623 | 140531 |
| &nbsp;&nbsp;&nbsp;&nbsp;Class B – Basic and Diluted | 375380 | 376315 | 375380 | 376868 |
| (a) Includes depreciation expense: | $(29) | $(25) | $(86) | $(77) |

---

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

See accompanying notes

------

**Warner Music Group Corp.**

**Condensed Consolidated Statements of Comprehensive Income**

*(In millions)*

*(Unaudited)*

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Net (loss) income | $(16) | $141 | $261 | $430 |
| Other comprehensive income (loss), net of tax: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency adjustment | 118 | (10) | 73 | 13 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred loss on derivative financial instruments |  |  |  | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Minimum pension liability |  |  |  | (1) |
| Other comprehensive income (loss), net of tax | 118 | (10) | 73 | 11 |
| Total comprehensive income | 102 | 131 | 334 | 441 |
| Less: Income attributable to noncontrolling interest |  | (2) | (5) | (36) |
| Comprehensive income attributable to Warner Music Group Corp. | $102 | $129 | $329 | $405 |

---

See accompanying notes

------

**Warner Music Group Corp.**

**Condensed Consolidated Statements of Cash Flows**

*(In millions)*

*(Unaudited)*

---

| | | |
|:---|:---|:---|
| | **Nine Months Ended<br>June 30,** | **Nine Months Ended<br>June 30,** |
| | **2025** | **2024** |
| **Cash flows from operating activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income | $261 | $430 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 272 | 244 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized losses and remeasurement of foreign-denominated loans and foreign currency forward exchange contracts | 84 | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 7 | 29 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on investments | (27) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net gain on divestitures |  | (32) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash interest expense | 4 | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash stock-based compensation expense | 43 | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-cash impairments | 102 | 50 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | (21) | (95) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories |  | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalty advances | (295) | (183) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other noncurrent assets |  | (85) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | (191) | (119) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Royalty payables | 246 | 352 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest | 15 | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating lease liabilities | (12) | (4) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | 24 | (205) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other balance sheet changes, net | (65) | (13) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 447 | 450 |
| **Cash flows from investing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of music publishing rights and music catalogs | (152) | (123) |
| &nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (111) | (83) |
| &nbsp;&nbsp;&nbsp;&nbsp;Investments and acquisitions of businesses, net of cash received | (46) | (26) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from the sale of investments | 36 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from divestitures |  | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (273) | (201) |
| **Cash flows from financing activities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Partial proceeds from Senior Term Loan Facility refinancing |  | 42 |
| &nbsp;&nbsp;&nbsp;&nbsp;Partial repayment of Senior Term Loan Facility refinancing |  | (42) |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred financing costs paid |  | (2) |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayment of Term Loan Mortgage | (1) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest holders | (8) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends paid | (283) | (267) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of deferred consideration | (23) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Taxes paid related to net share settlement of restricted stock units and common stock | (19) | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock repurchased and retired | (3) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other financing activity | (7) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (344) | (280) |
| Effect of exchange rate changes on cash and equivalents | 3 | (3) |
| Net decrease in cash and equivalents | (167) | (34) |
| Cash and equivalents at beginning of period | 694 | 641 |
| Cash and equivalents at end of period | $527 | $607 |

---

See accompanying notes

------

**Warner Music Group Corp.**

**Condensed Consolidated Statements of Equity**

*(In millions, except share amounts which are reflected in thousands, and per share data)*

*(Unaudited)*

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Nine Months Ended June 30, 2025** | | | | | | | | | | |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| | **Shares** | **Value** | **Shares** | **Value** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| Balance at September 30, 2024 | 142559 | $— | 375380 | $1 | $2077 | $(1313) | $(247) | $518 | $157 | $675 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 256 |  | 256 | 5 | 261 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax |  |  |  |  |  |  | 73 | 73 |  | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends ($0.54 per share) |  |  |  |  |  | (283) |  | (283) |  | (283) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 49 |  |  | 49 |  | 49 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest holders |  |  |  |  |  |  |  |  | (8) | (8) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of noncontrolling interests |  |  |  |  |  |  |  |  | 74 | 74 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vesting of restricted stock units, net of shares withheld for employee taxes | 801 |  |  |  | (19) |  |  | (19) |  | (19) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued under the Plan | 2607 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares repurchased and retired | (80) |  |  |  | (3) |  |  | (3) |  | (3) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other |  |  |  |  | (2) |  |  | (2) | (5) | (7) |
| Balance at June 30, 2025 | 145887 | $— | 375380 | $1 | $2102 | $(1340) | $(174) | $589 | $223 | $812 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended June 30, 2025** | | | | | | | | | | |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| | **Shares** | **Value** | **Shares** | **Value** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| Balance at March 31, 2025 | 145032 | $— | 375380 | $1 | $2088 | $(1230) | $(292) | $567 | $223 | $790 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss |  |  |  |  |  | (16) |  | (16) |  | (16) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax |  |  |  |  |  |  | 118 | 118 |  | 118 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends ($0.18 per share) |  |  |  |  |  | (94) |  | (94) |  | (94) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense |  |  |  |  | 15 |  |  | 15 |  | 15 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vesting of restricted stock units, net of shares withheld for employee taxes | 6 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued under the Plan | 869 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common shares repurchased and retired | (20) |  |  |  | (1) |  |  | (1) |  | (1) |
| Balance at June 30, 2025 | 145887 | $— | 375380 | $1 | $2102 | $(1340) | $(174) | $589 | $223 | $812 |

---

------

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Nine Months Ended June 30, 2024** | | | | | | | | | | |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity (Deficit)** | **Non-controlling<br>Interest** | **Total Equity (Deficit)** |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity (Deficit)** | **Non-controlling<br>Interest** | **Total Equity (Deficit)** |
| | **Shares** | **Value** | **Shares** | **Value** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity (Deficit)** | **Non-controlling<br>Interest** | **Total Equity (Deficit)** |
| Balance at September 30, 2023 | 138345 | $— | 377650 | $1 | $2015 | $(1387) | $(322) | $307 | $123 | $430 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 394 |  | 394 | 36 | 430 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income, net of tax |  |  |  |  |  |  | 11 | 11 |  | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends ($0.51 per share) |  |  |  |  |  | (267) |  | (267) |  | (267) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  |  |  | 43 |  |  | 43 |  | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest holders |  |  |  |  |  |  |  |  | (6) | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of noncontrolling interests |  |  |  |  |  |  |  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued under the Plan | 1738 |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exchange of Class B shares for Class A shares | 1335 |  | (1335) |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued under Omnibus Incentive Plan | 185 |  |  |  | (5) |  |  | (5) |  | (5) |
| Balance at June 30, 2024 | 141603 | $— | 376315 | $1 | $2053 | $(1260) | $(311) | $483 | $152 | $635 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Three Months Ended June 30, 2024** | | | | | | | | | | |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| | **Class A<br>Common Stock** | **Class A<br>Common Stock** | **Class B<br>Common Stock** | **Class B<br>Common Stock** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| | **Shares** | **Value** | **Shares** | **Value** | **Additional<br>Paid-in<br>Capital** | **Accumulated<br>Deficit** | **Accumulated<br>Other<br>Comprehensive<br>Loss** | **Total<br>Warner Music<br>Group Corp. Equity** | **Non-controlling<br>Interest** | **Total Equity** |
| Balance at March 31, 2024 | 141596 | $— | 376315 | $1 | $2043 | $(1310) | $(301) | $433 | $152 | $585 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income |  |  |  |  |  | 139 |  | 139 | 2 | 141 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive loss, net of tax |  |  |  |  |  |  | (10) | (10) |  | (10) |
| &nbsp;&nbsp;&nbsp;&nbsp;Dividends ($0.17 per share) |  |  |  |  |  | (89) |  | (89) |  | (89) |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation |  |  |  |  | 10 |  |  | 10 |  | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;Distribution to noncontrolling interest holders |  |  |  |  |  |  |  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisition of noncontrolling interests |  |  |  |  |  |  |  |  | (1) | (1) |
| &nbsp;&nbsp;&nbsp;&nbsp;Shares issued under Omnibus Incentive Plan | 7 |  |  |  |  |  |  |  |  |  |
| Balance at June 30, 2024 | 141603 | $— | 376315 | $1 | $2053 | $(1260) | $(311) | $483 | $152 | $635 |

---

See accompanying notes

------

**Warner Music Group Corp.**

**Notes to Condensed Consolidated Financial Statements (Unaudited)**

**1. Description of Business**

Warner Music Group Corp. (the "Company") was formed on November 21, 2003. The Company is the direct parent of WMG Holdings Corp. ("Holdings"), which is the direct parent of WMG Acquisition Corp. ("Acquisition Corp."). Acquisition Corp. is one of the world's major music entertainment companies. We classify our business interests into two fundamental operations: Recorded Music and Music Publishing.

***Recorded Music Operations***

***Music Publishing Operations***

While Recorded Music is focused on marketing, promoting, distributing and licensing a particular recording of a musical composition, Music Publishing is an intellectual property business focused on generating revenue from uses of the musical composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter, or engaging in those activities for other rightsholders, our Music Publishing business shares the revenues generated from use of the musical compositions with the songwriter or other rightsholders.

**2. Summary of Significant Accounting Policies**

**Interim Financial Statements**

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended June 30, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending September 30, 2025.

The consolidated balance sheet at September 30, 2024 has been derived from the audited consolidated financial statements at that date but does not include all the information and notes required by U.S. GAAP for complete financial statements.

For further information, refer to the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 (File No. 001-32502).

**Basis of Consolidation**

The accompanying financial statements present the consolidated accounts of all entities in which the Company has a controlling voting interest and/or variable interest required to be consolidated in accordance with U.S. GAAP. All intercompany balances and transactions have been eliminated.

Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 810, *Consolidation* ("ASC 810") requires the Company first evaluate its investments to determine if any investments qualify as a variable interest entity ("VIE"). A VIE is consolidated if the Company is deemed to be the primary beneficiary of the VIE, which is the party involved with the VIE that has both (i) the power to control the most significant activities of the VIE and (ii) either the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. If an entity is not deemed to be a VIE, the Company consolidates the entity if the Company has a controlling voting interest. As of June 30, 2025 and September 30, 2024, there were approximately $68 million and $77 million of assets, respectively, related to VIEs included in our condensed consolidated balance sheets. As of June 30, 2025 and September 30, 2024, there were approximately $2 million of liabilities related to VIEs included in our condensed consolidated balance sheets.

The Company has performed a review of all subsequent events through the date the financial statements were issued and has determined that no additional disclosures are necessary.

------

**Income Taxes**

The Company uses the estimated annual effective tax rate method in computing its interim tax provision. Certain items, including those deemed to be unusual and infrequent are excluded from the estimated annual effective tax rate. In such cases, the actual tax expense or benefit is reported in the same period as the related item. Certain tax effects are also not reflected in the estimated annual effective tax rate, primarily certain changes in the realizability of deferred tax assets and uncertain tax positions, and are recorded in the period in which the change occurs.

Global Intangible Low-Taxed Income ("GILTI") imposes U.S. taxes on the excess of a deemed return on tangible assets of certain foreign subsidiaries. The Company made an election to recognize GILTI tax in the specific period in which it occurs.

**New Accounting Pronouncements**

<u>Accounting Pronouncements Not Yet Adopted</u>

In November 2023, the FASB issued ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The amendment enhances reportable segment disclosure requirements, primarily by requiring enhanced disclosures about significant segment expenses, reporting for interim periods, and Chief Operating Decision Maker related information. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the effect that the adoption of these standards will have on its consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*. The amendment enhances income tax disclosure requirements, by requiring enhanced disclosures on the income tax rate reconciliation and income taxes paid. The amendments in this ASU are effective for fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the effect that the adoption of these standards will have on its consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, *Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses.* The amendment requires new financial statement disclosures to provide disaggregated information for certain types of expenses, including purchases of inventory, employee compensation, depreciation, and amortization in commonly presented expense captions such as cost of revenue and selling, general and administrative expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. The Company is in the process of evaluating the effect that the adoption of these standards will have on its consolidated financial statements.

**3. Earnings per Share**

The Company utilizes the two-class method to report earnings per share. Basic earnings per share is computed by dividing net income available to each class of stock, less earnings available to participating securities, divided by the weighted average number of outstanding common shares for each class of stock. Diluted earnings per share is computed by dividing net income available to each class of stock, less earnings available to participating securities, divided by the weighted average number of outstanding common shares, plus dilutive potential common shares, which is calculated using the treasury-stock method. The potentially dilutive common shares did not have a dilutive effect on the Company's EPS calculation for the three and nine months ended June 30, 2025 and 2024.

The following table sets forth the calculation of basic and diluted net income per common share under the two-class method for the three and nine months ended June 30, 2025 and 2024 (in millions, except share amounts, which are reflected in thousands, and per share data):

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** | **Three Months Ended June 30,** |
| | **2025** | **2025** | **2024** | **2024** |
| | **Class A** | **Class B** | **Class A** | **Class B** |
| <u>Basic and Diluted EPS:</u> |  |  |  |  |
| &nbsp;&nbsp;Numerator |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) attributable to Warner Music Group Corp. | $(4) | $(12) | $39 | $100 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Net loss attributable to participating securities (a) |  |  | (2) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income (loss) attributable to common stockholders | $(4) | $(12) | $37 | $100 |
| &nbsp;&nbsp;Denominator |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding | 145878 | 375380 | 141568 | 376315 |
| &nbsp;&nbsp;Basic and Diluted Earnings (Loss) Per Share | $(0.03) | $(0.03) | $0.27 | $0.27 |
|  | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** | **Nine Months Ended June 30,** |
|  | **2025** | **2025** | **2024** | **2024** |
|  | **Class A** | **Class B** | **Class A** | **Class B** |
| <u>Basic and Diluted EPS:</u> |  |  |  |  |
| &nbsp;&nbsp;Numerator |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Warner Music Group Corp. | $73 | $183 | $111 | $283 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Net income attributable to participating securities (a) | (3) |  | (5) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to common stockholders | $70 | $183 | $106 | $283 |
| &nbsp;&nbsp;Denominator |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weighted average shares outstanding | 144623 | 375380 | 140531 | 376868 |
| &nbsp;&nbsp;Basic and Diluted EPS | $0.49 | $0.49 | $0.75 | $0.75 |

---

______________________________________

(a)Participating securities include unvested restricted stock units, which include the right to receive non-forfeitable dividend equivalents. Participating securities are not contractually obligated to share in losses.

------

**4. Revenue Recognition**

**Disaggregation of Revenue**

The Company's revenue consists of the following categories, which aggregate into the segments – Recorded Music and Music Publishing:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Nine Months Ended <br>June 30,** | **Nine Months Ended <br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **Revenue by Type** |  |  |  |  |
| Digital | $929 | $882 | $2643 | $2638 |
| Physical | 119 | 120 | 397 | 385 |
| Total digital and physical | 1048 | 1002 | 3040 | 3023 |
| Artist services and expanded-rights | 195 | 159 | 508 | 489 |
| Licensing | 111 | 90 | 326 | 373 |
| Total Recorded Music | 1354 | 1251 | 3874 | 3885 |
| Performance | 58 | 52 | 167 | 155 |
| Digital | 204 | 194 | 599 | 577 |
| Mechanical | 16 | 13 | 46 | 43 |
| Synchronization | 54 | 42 | 142 | 129 |
| Other | 4 | 4 | 15 | 11 |
| Total Music Publishing | 336 | 305 | 969 | 915 |
| Intersegment eliminations | (1) | (2) | (4) | (4) |
| Total revenues | $1689 | $1554 | $4839 | $4796 |
| **Revenue by geographical location** |  |  |  |  |
| U.S. Recorded Music | $536 | $517 | $1565 | $1652 |
| U.S. Music Publishing | 186 | 161 | 520 | 503 |
| Total U.S. | 722 | 678 | 2085 | 2155 |
| International Recorded Music | 818 | 734 | 2309 | 2233 |
| International Music Publishing | 150 | 144 | 449 | 412 |
| Total international | 968 | 878 | 2758 | 2645 |
| Intersegment eliminations | (1) | (2) | (4) | (4) |
| Total revenues | $1689 | $1554 | $4839 | $4796 |

---

**Sales Returns and Uncollectible Accounts**

Based on management's analysis of sales returns, refund liabilities of $16 million and $20 million were established at June 30, 2025 and September 30, 2024, respectively.

Based on management's analysis of estimated credit losses, reserves of $24 million and $26 million were established at June 30, 2025 and September 30, 2024, respectively.

**Deferred Revenue**

Deferred revenue increased by $845 million during the nine months ended June 30, 2025 related to cash received from customers for fixed fees and minimum guarantees in advance of performance, including amounts recognized in the period. Revenues of $197 million were recognized during the nine months ended June 30, 2025 related to the balance of deferred revenue at September 30, 2024. There were no other significant changes to deferred revenue during the reporting period.

**Performance Obligations**

For the three months ended June 30, 2025 and June 30, 2024, the Company recognized revenue of $10 million and $35 million, respectively, from performance obligations satisfied in previous periods. For the nine months ended June 30, 2025 and June 30, 2024, the Company recognized revenue of $67 million and $109 million, respectively, from performance obligations satisfied in previous periods.

------

Revenues expected to be recognized in the future related to performance obligations that are unsatisfied at June 30, 2025 are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Rest of FY25** | **FY26** | **FY27** | **Thereafter** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| Remaining performance obligations | $422 | $647 | $171 | $169 | $1409 |
| Total | $422 | $647 | $171 | $169 | $1409 |

---

**5. Comprehensive Income**

Comprehensive income, which is reported in the accompanying condensed consolidated statements of equity, consists of net income and other gains and losses affecting equity that, under U.S. GAAP, are excluded from net income. For the Company, the components of other comprehensive income primarily consist of foreign currency translation gains and losses, minimum pension liabilities, and deferred gains and losses on financial instruments designated as hedges under ASC 815, *Derivatives and Hedging*. The following summary sets forth the changes in the components of accumulated other comprehensive loss.

---

| | | | |
|:---|:---|:---|:---|
| | **Foreign Currency Translation Loss (a)** | **Minimum Pension Liability Adjustment** | **Accumulated Other Comprehensive Loss, net** |
|  | **(in millions)** | **(in millions)** | **(in millions)** |
| Balances at September 30, 2024 | $(244) | $(3) | $(247) |
| Other comprehensive income | 73 |  | 73 |
| Balances at June 30, 2025 | $(171) | $(3) | $(174) |

---

______________________________________

(a)Includes historical foreign currency translation related to certain intra-entity transactions.

**6. Goodwill and Intangible Assets**

**Goodwill**

The following analysis details the changes in goodwill for each reportable segment:

---

| | | | |
|:---|:---|:---|:---|
| | **Recorded<br>Music** | **Music<br>Publishing** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Balances at September 30, 2024 | $1557 | $464 | $2021 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions | 22 |  | 22 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other adjustments (a) | 21 |  | 21 |
| Balances at June 30, 2025 | $1600 | $464 | $2064 |

---

______________________________________

(a)Other adjustments during the nine months ended June 30, 2025 represent foreign currency movements.

The Company performs its annual goodwill impairment test in accordance with ASC 350, *Intangibles—Goodwill and Other* ("ASC 350") during the fourth quarter of each fiscal year as of July 1. The Company may conduct an earlier review if events or circumstances occur that would suggest the carrying value of the Company's goodwill may not be recoverable. No indicators of impairment were identified during the current period that required the Company to perform an interim assessment or recoverability test.

------

**Intangible Assets**

Intangible assets consist of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **Weighted-Average Useful Life** | **June 30,<br>2025** | **September 30,<br>2024** |
| | | **(in millions)** | **(in millions)** |
| Intangible assets subject to amortization: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Recorded music catalog | 12 years | $1780 | $1616 |
| &nbsp;&nbsp;&nbsp;&nbsp;Music publishing copyrights | 24 years | 2677 | 2227 |
| &nbsp;&nbsp;&nbsp;&nbsp;Artist and songwriter contracts | 13 years | 1143 | 1125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trademarks | 16 years | 55 | 69 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other intangible assets | 6 years | 88 | 69 |
| Total gross intangible assets subject to amortization |  | 5743 | 5106 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated amortization |  | (2979) | (2747) |
| Total net intangible assets subject to amortization |  | 2764 | 2359 |
| Intangible assets not subject to amortization: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Trademarks and tradenames | Indefinite | 154 | 152 |
| Total net intangible assets |  | $2918 | $2511 |

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The increase in net intangible assets during the nine months ended June 30, 2025 is primarily related to the acquisition of Tempo Music Holdings, LLC ("Tempo") which is further described below. Additionally, the Company completed various business combinations during the nine months ended June 30, 2025 which resulted in the recognition of intangible assets with a preliminary estimated fair value of $39 million in the aggregate within recorded music catalogs, artist and songwriter contracts, trademarks, and other intangibles. The increase in net intangible assets was partially offset by the impairment of trademarks and other intangible assets of $29 million, in the aggregate, within the Recorded Music segment.

On February 5, 2025, WMG Tempo Holdco LLC, a wholly owned subsidiary of Acquisition Corp. and an indirect subsidiary of the Company, which has majority representation on the board of WMG Tempo Holdco LLC, acquired a 50.1% interest in Tempo, a proprietary music rights acquisition platform, for consideration of $76 million, including transaction costs, with an option, exercisable on or prior to November 30, 2027, to acquire the remaining 49.9% of Tempo for approximately $73 million, subject to contractual adjustments. The transaction was accounted for as an asset acquisition in accordance with ASC 805, *Business Combinations*, and the Company recognized $351 million of music publishing copyrights and $87 million of recorded music catalogs which will each be amortized over an estimated useful life of 15 years. Additionally, the Company recognized approximately $13 million of net assets, which consists primarily of cash and accounts receivables. In connection with the transaction, the Company assumed long-term debt held by one of Tempo's subsidiaries, which was recognized on the acquisition date at its estimated fair value of approximately $302 million. The assumed long-term debt is secured only by certain music rights owned by Tempo and is nonrecourse to the Company and its subsidiaries, other than Tempo (refer to Note 7 for more information on the acquired long-term debt). Finally, the Company recognized a corresponding noncontrolling interest of $73 million based on the fair value of the acquired assets.

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**7. Debt**

**Debt Capitalization**

As of June 30, 2025, our long-term debt consists of the following:

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| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **September 30,<br>2024** |
| | **(in millions)** | **(in millions)** |
| Revolving Credit Facility (a) | $— | $— |
| Senior Term Loan Facility due 2031 | 1295 | 1295 |
| 2.750% Senior Secured Notes due 2028 | 381 | 363 |
| 3.750% Senior Secured Notes due 2029 | 540 | 540 |
| 3.875% Senior Secured Notes due 2030 | 535 | 535 |
| 2.250% Senior Secured Notes due 2031 | 522 | 497 |
| 3.000% Senior Secured Notes due 2031 | 800 | 800 |
| Mortgage Term Loan due 2033 | 17 | 18 |
| Total debt, including the current portion | 4090 | 4048 |
| Premium less unamortized discount and unamortized DFCs | (29) | (34) |
| Total Acquisition Corp. long-term debt, including the current portion, net | $4061 | $4014 |
| Tempo Asset-Based Notes due 2050 | 311 |  |
| Unamortized discount | (9) |  |
| Total asset-based long-term debt, including the current portion, net (b) | $302 | $— |
| Total long-term debt, including the current portion, net | $4363 | $4014 |

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______________________________________

(a)Reflects $350 million of commitments under the Revolving Credit Facility with no letters of credit outstanding at June 30, 2025 and September 30, 2024. There were no loans outstanding under the Revolving Credit Facility as of June 30, 2025 and September 30, 2024.

(b)The Tempo Asset-Based Notes due 2050 are secured only by certain music rights owned by Tempo and are nonrecourse to the Company and its subsidiaries, other than Tempo.

The Company is the direct parent of Holdings, which is the direct parent of Acquisition Corp. Acquisition Corp. is party to and the borrower under a $1,295 million senior secured term loan credit facility, pursuant to a credit agreement dated November 1, 2012, as amended or supplemented (the "Senior Term Loan Credit Agreement") with JPMorgan Chase Bank NA, as administrative agent and collateral agent, and the other financial institutions and lenders from time to time party thereto (the "Senior Term Loan Facility"). Additionally, as of June 30, 2025 Acquisition Corp. had issued and outstanding the 2.750% Senior Secured Notes due 2028, the 3.750% Senior Secured Notes due 2029, the 3.875% Senior Secured Notes due 2030, the 2.250% Senior Secured Notes due 2031 and the 3.000% Senior Secured Notes due 2031 (together, the "Acquisition Corp. Notes").

All of the Acquisition Corp. Notes are guaranteed by all of Acquisition Corp.'s domestic wholly-owned subsidiaries. The guarantee of the Acquisition Corp. Notes by Acquisition Corp.'s domestic wholly-owned subsidiaries is full, unconditional and joint and several. The secured notes are guaranteed on a senior secured basis.

The Company and Holdings are holding companies that conduct substantially all of their business operations through Acquisition Corp. Accordingly, while Acquisition Corp. and its subsidiaries are not currently restricted from distributing funds to the Company and Holdings under the indentures for the Acquisition Corp. Notes or the credit agreements for the Acquisition Corp. Senior Credit Facilities, including the Revolving Credit Facility (as defined below) and the Senior Term Loan Facility, should Acquisition Corp.'s Total Indebtedness to EBITDA Ratio increase above 3.50:1.00 and the term loans not achieve an investment grade rating, the covenants under the Revolving Credit Facility, which are currently suspended, will be reinstated and the ability of the Company and Holdings to obtain funds from their subsidiaries will be restricted by the Revolving Credit Facility. The Company was in compliance with its covenants under its outstanding notes, the Revolving Credit Facility and the Senior Term Loan Facility as of June 30, 2025.

**Fiscal 2025 Transactions**

***Acquisition of Tempo***

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Following its acquisition of Tempo on February 5, 2025, the Company holds approximately $311 million of asset-based securities due November 2050 ("Asset-Based Notes") issued by a subsidiary of Tempo and secured only by certain music rights owned by Tempo and is nonrecourse to the Company and its subsidiaries, other than Tempo. These notes, which consist of multiple fixed rate tranches, will accrue at a fixed weighted average rate of 4.62% until November 30, 2027, with higher interest rates thereafter. Principal and interest are payable in equal semi-annual installments.

***Beethoven Credit Agreement***

On June 29, 2025, the Company, through its wholly owned indirect subsidiary, WMG BC Holdco LLC, entered into a joint venture agreement (the "JV Agreement") with BCSS W JV Investments (B), L.P. ("BainCo"), a Delaware limited partnership and wholly owned indirect subsidiary of Bain Capital Special Situations, LP, pursuant to which the Company and BainCo will operate Beethoven JV 1, LLC, a Delaware limited liability company.

In connection with the JV Agreement, on the same date, Beethoven Financing 1, LLC, a Delaware limited liability company and an indirect subsidiary of the Company, as borrower (the "Initial Borrower"), the additional borrowers from time to time party thereto (together with the Initial Borrower, the "Borrowers"), Beethoven Holdings 1, LLC, a Delaware limited liability company, as guarantor (the "Initial Guarantor"), the additional guarantors from time to time party thereto (together with the Initial Guarantor, the "Guarantors"), each of the commercial paper conduits from time to time party thereto (the "Conduit Lenders"), each of the financial institutions from time to time party thereto as committed lenders (the "Committed Lenders" and, together with the Conduit Lenders, the "Lenders"), the conduit managing agents from time to time party thereto, The Bank of New York Mellon, as administrative agent for the Lenders and as collateral agent for the Secured Parties (in each case, as defined in the Beethoven Credit Agreement), entered into a Credit and Security Agreement (the "Beethoven Credit Agreement") pursuant to which the Lenders have agreed to extend up to $500 million in commitment amounts to the Borrowers (the "Beethoven Credit Facility"). The obligations of the Borrowers under the Beethoven Credit Agreement will be (a) secured by the Borrowers with a first priority security interest in all of their respective assets and (b) guaranteed by the Guarantors with a first priority security interest in all of their respective assets.

The advances under the Beethoven Credit Agreement shall bear interest at the rates described below under "—Interest Rates."

The Beethoven Credit Agreement contains customary affirmative and negative covenants for this type of facility, and the ability, subject to the consent of the Lenders, to increase the size of the facility to $700 million.

**Interest Rates**

The loans under the Revolving Credit Facility bear interest at Acquisition Corp.'s election at a rate equal to (i) the secured overnight financing rate as administered by the Federal Reserve Bank of New York for the applicable interest period ("Revolving Term SOFR"), and other rates for alternate currencies, such as EURIBOR and SONIA, as provided in the Revolving Credit Agreement, subject to a zero floor, plus 1.75% per annum in the case of Initial Revolving Loans (as defined in the Revolving Credit Agreement), or 1.875% per annum in the case of 2020 Revolving Loans (as defined in the Revolving Credit Agreement), or (ii) the base rate, which is the highest of (x) the corporate base rate established by the administrative agent from time to time, (y) 0.50% in excess of the overnight federal funds rate and (z) the one-month Revolving Term SOFR plus 1.0% per annum, plus, in each case, 0.75% per annum in the case of Initial Revolving Loans, or 0.875% per annum in the case of 2020 Revolving Loans; provided that, in respect of 2020 Revolving Loans, the applicable margin with respect to such loans is subject to adjustment as set forth in the pricing grid in the Revolving Credit Agreement. Based on the Senior Secured Indebtedness to EBITDA Ratio of 2.07x at June 30, 2025, the applicable margin for SOFR loans and risk-free rate loans would be 1.375% instead of 1.875% and the applicable margin for ABR loans would be 0.375% instead of 0.875% in the case of 2020 Revolving Loans. If there is a payment default at any time, then the interest rate applicable to overdue principal will be the rate otherwise applicable to such loan plus 2.0% per annum. Default interest will also be payable on other overdue amounts at a rate of 2.0% per annum above the amount that would apply to an alternative base rate loan.

The loans under the Senior Term Loan Facility bear interest at Acquisition Corp.'s election at a rate equal to (i) the forward-looking term rate based on Term SOFR subject to a zero floor, plus 1.75% per annum or (ii) the base rate, which is the highest of (x) the corporate base rate established by the administrative agent as its prime rate in effect at its principal office in New York City from time to time, (y) 0.50% in excess of the overnight federal funds rate and (z) one-month Term SOFR, plus 1.00% per annum, subject to a 1.00% floor, plus, in each case, 1.00% per annum. If there is a payment default at any time, then the interest rate applicable to overdue principal and interest will be the rate otherwise applicable to such loan plus 2.00% per annum. Default interest will also be payable on other overdue amounts at a rate of 2.00% per annum above the amount that would apply to an alternative base rate loan.

The term loan entered into on January 27, 2023 (the "Term Loan Mortgage") bears interest at a rate of 30-day SOFR plus the applicable margin of 1.40%, subject to a zero floor.

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Interest on the Asset-Based Notes, which consist of multiple fixed rate tranches, will accrue at a fixed weighted average rate of 4.62% until November 30, 2027. Following November 30, 2027, if the Asset-Based Notes remain outstanding, the interest rate on the outstanding Asset-Based Notes will increase by a per annum rate equal to the greater of: (i) 5.0% and (ii) the amount, if any, by which the sum of the following exceeds the interest rate otherwise payable with respect to such Asset-Based Notes: (A) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on November 30, 2027 of the U.S. treasury security having a term closest to seven years plus (B) 5.0%, plus (C) with respect to class A notes, 3.53% and, with respect to class B notes, 4.28%.

The advances under the Beethoven Credit Agreement shall bear interest (a) in the case of a base rate advance, at a rate equal to the base rate, which means, for any day, the highest of (i) the prime rate in effect on such day; (ii) the federal funds rate in effect on such day plus 0.50%; and (iii) Term SOFR for a one-month tenor in effect on such day plus 1.00% per annum, plus the applicable margin of 1.00% and (b) in the case of a Term SOFR advance, the Term SOFR for the interest accrual period plus the applicable margin of 2.00%.

The Company has entered into, and in the future may enter into, interest rate swaps to manage interest rate risk. As of June 30, 2025, there are no interest rate swaps outstanding.

**Maturity of Senior Term Loan Facility**

The loans outstanding under the Senior Term Loan Facility mature on January 24, 2031.

**Maturity of Revolving Credit Facility**

The maturity date of the Revolving Credit Facility is November 30, 2028.

**Maturities of Senior Secured Notes**

As of June 30, 2025, there are no scheduled maturities of notes until 2028, when $381 million is scheduled to mature. Thereafter, $2.708 billion is scheduled to mature.

**Maturity of Term Loan Mortgage**

The maturity date of the Term Loan Mortgage is January 27, 2033, subject to a call option exercisable by Truist Bank at any time after January 27, 2028 if certain criteria relating to the Company's creditworthiness are met.

**Maturity of Tempo Asset-Based Notes**

The maturity date of the Asset-Based Notes is November 30, 2050.

**Maturity of Beethoven Credit Agreement**

The maturity date of the Beethoven Credit Facility is June 29, 2030.

**Interest Expense, net**

Total interest expense, net was $43 million and $40 million for the three months ended June 30, 2025 and 2024, respectively, and $119 million and $121 million for the nine months ended June 30, 2025 and 2024, respectively. Interest expense, net includes interest expense related to our outstanding indebtedness of $45 million and $46 million for the three months ended June 30, 2025 and 2024, respectively, and $132 million and $137 million for the nine months ended June 30, 2025 and 2024, respectively. The weighted-average interest rate of the Company's total debt was 4.1% at June 30, 2025, 4.3% at September 30, 2024, and 4.5% at June 30, 2024.

**8. Restructuring and Impairments**

*2024 Strategic Restructuring Plan*

In 2024, the Company announced a strategic restructuring plan (the "2024 Strategic Restructuring Plan") designed to free up additional funds to invest in music and accelerate the Company's growth for the next decade. The 2024 Strategic Restructuring Plan is substantially complete and the remaining associated cash payments are expected to be made by the end of fiscal year 2026.

For the three months ended June 30, 2025, the Company recognized a $1 million benefit in our Recorded Music segment due a change in estimate of severance costs. For the nine months ended June 30, 2025, total severance and other contract termination costs recorded in connection with the 2024 Strategic Restructuring Plan were $7 million, of which $8 million of expense was recognized in

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our Recorded Music segment while there was a $1 million benefit recognized at Corporate due to a change in estimate. Additionally, for the nine months ended June 30, 2025, the Company recognized $32 million of impairment losses, all of which were recognized in our Recorded Music segment. Impairment charges recognized during the period primarily relate to the write-off of certain long-form audiovisual production assets and lease termination costs for office closures.

As of June 30, 2025, total cumulative restructuring and impairment charges recognized in connection with the 2024 Strategic Restructuring Plan were $217 million with $207 million of costs recognized in our Recorded Music segment and $10 million recognized at Corporate. These costs are composed of $135 million of severance and other contract termination costs, of which $7 million was non-cash, and $82 million of non-cash impairment charges.

The below table sets forth the activity for the nine months ended June 30, 2025 in the restructuring accrual associated with the 2024 Strategic Restructuring Plan included within accrued liabilities in the accompanying condensed consolidated balance sheets.

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| | | | |
|:---|:---|:---|:---|
| | **Severance Costs** | **Contract Termination Costs** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** |
| Balance at September 30, 2024 | $99 | $5 | $104 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restructuring charges |  | 7 | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments | (63) | (5) | (68) |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency movements |  |  |  |
| Balance at June 30, 2025 | $36 | $7 | $43 |

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*Other Impairments*

For the three and nine months ended June 30, 2025, the Company recognized a pre-tax impairment charge of $70 million ($48 million after-tax) within the Recorded Music segment for long-lived assets associated with certain of the Company's non-core e-tailer operations due to a triggering event that indicated the carrying amount was no longer recoverable. The recoverable fair value was determined based on current market indicators.

**9. Commitments and Contingencies**

From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of business. The Company is currently subject to several such claims and legal proceedings. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors.

**10. Equity**

**Stock-Based Compensation**

The Company's stock-based compensation plans are described in Note 14, "Equity," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024. Stock-based compensation consists primarily of common stock, restricted stock units, stock options, and market-based performance share units granted to eligible employees and executives under the Omnibus Incentive Plan.

For the three months ended June 30, 2025, the Company recognized a total of $16 million of non-cash stock-based compensation expense, of which $15 million was recorded to additional paid-in capital and $1 million was recorded as a shared-based compensation liability. For the nine months ended June 30, 2025, the Company recognized a total of $43 million of non-cash stock-based compensation expense, of which $42 million was recorded to additional paid-in capital and $1 million was recorded as a shared-based compensation liability. For the three and nine months ended June 30, 2024, the Company recognized a total of $10 million and $28 million of non-cash stock-based compensation expense, respectively, all of which was recorded to additional paid-in capital. During the nine months ended June 30, 2025 and 2024, $7 million and $15 million of share-based compensation liabilities were reclassified to additional paid-in capital upon a certain number of awards becoming determinable, respectively.

**Common Stock**

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During the three and nine months ended June 30, 2025, in connection with the Senior Management Free Cash Flow Plan (the "Plan"), the Company issued a total of 869,009 and 2,607,027 shares, respectively, of Class A Common Stock to settle all remaining participants' deferred equity units previously issued under the Plan.

During the three and nine months ended June 30, 2025, the Company satisfied the vesting of RSUs by issuing 5,959 and 800,748 shares of Class A Common Stock under the Omnibus Incentive Plan, respectively, which is net of shares used to settle employee income tax obligations.

**Noncontrolling Interest**

On August 5, 2025, the Company acquired the remaining equity interest from noncontrolling interest holders for an aggregate consideration of $165 million, which includes cash consideration of $40 million and $125 million payable in the form of the Company's Class A Common Stock. The Company issued 1,416,666 shares of Class A Common Stock on the closing date and expects to issue an additional 2,750,000 shares of Class A Common Stock on the first anniversary of the closing. These shares are subject to specific lock-up periods.

**Share Repurchase Program**

On November 14, 2024, the Company's board of directors authorized a new $100 million share repurchase program (the "Share Repurchase Program"), which is intended to offset dilution from the Omnibus Incentive Plan. Under this authorization, the Company may, from time to time, purchase shares of its Class A Common Stock through open market transactions, privately negotiated transactions, forward, derivative, or accelerated repurchase transactions, tender offers or otherwise, in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. The $100 million share repurchase authorization does not obligate the Company to purchase any shares and the Share Repurchase Program does not have a fixed expiration date. The Company may enter into a pre-arranged stock trading plan in accordance with the guidelines specified under Rule 10b5-1 to effectuate all or a portion of the Share Repurchase Program. The Company expects to finance any repurchases from a combination of cash on hand and cash provided by operating activities. The timing and method of any repurchases, which will depend on a variety of factors, including market conditions, are subject to our results of operations, financial condition, liquidity and other factors. The authorization for the Share Repurchase Program may be suspended, terminated, increased or decreased by the Company's board of directors at any time.

The following table summarizes our total share repurchases and retirement under the Share Repurchase Program during the three and nine months ended June 30, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended<br>June 30, 2025** | **Three Months Ended<br>June 30, 2025** | **Nine Months Ended<br>June 30, 2025** | **Nine Months Ended<br>June 30, 2025** |
|<br>**Share Repurchase Type** | **Shares** | **Amount<br>(in millions)** | **Shares** | **Amount<br>(in millions)** |
| Open Market Repurchases | 20000 | $1 | 80383 | $3 |

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**11. Income Taxes**

For the three and nine months ended June 30, 2025, the Company recorded an income tax expense of $5 million and $123 million, respectively. The income tax expense for the three and nine months ended June 30, 2025 is higher than the expected tax expense at the statutory rate of 21% primarily due to foreign income taxed at rates higher than in the United States, including withholding taxes, non-deductible executive compensation under Internal Revenue Code ("IRC") Section 162(m), and the net impact of GILTI and foreign derived intangible income ("FDII"). These charges were partially offset by a tax benefit recognized on an impairment charge associated with certain of the Company's non-core e-tailer operations. The income tax expense for the nine months ended June 30, 2025 is higher than the expected tax expense at the statutory rate of 21% primarily due to foreign income taxed at rates higher than in the United States, including withholding taxes, U.S. state and local taxes, non-deductible executive compensation under IRC Section 162(m), unrecognized tax benefit related to uncertain tax positions, and the net impact of GILTI and FDII. These charges were partially offset by tax benefits associated with Research and Development ("R&D") credits, and non-controlling interest.

For the three and nine months ended June 30, 2024, the Company recorded an income tax expense of $30 million and $120 million, respectively. The income tax expense for the three and nine months ended June 30, 2024 is lower than the expected tax benefit at the statutory tax rate of 21% primarily due to benefits related to updated allowable costs for reported FDII, non-controlling interest, and the net impact of GILTI and FDII. These benefits were partially offset by foreign income taxed at rates higher than the United States, withholding taxes, and U.S. state and local taxes. The income tax expense for the nine months ended June 30, 2024 is lower than the expected tax expense at the statutory rate of 21% primarily due to the tax benefit from the winding down of the Company's owned and operated media properties, updated allowable costs for FDII, non-controlling interest, the net impact of GILTI

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and FDII and tax benefits associated with R&D credits. These benefits were partially offset by withholding taxes, foreign income taxed at rates higher than the United States, U.S. state and local taxes, non-deductible executive compensation under IRC Section 162(m), and unrecognized tax benefit related to uncertain tax positions.

The Company has determined that it is reasonably possible that the gross unrecognized tax benefits as of June 30, 2025 could decrease by up to approximately $2 million related to various ongoing audits and settlement discussions in various jurisdictions during the next twelve months.

The Organization for Economic Co-operation and Development ("OECD") introduced Base Erosion and Profit Shifting ("BEPS") Pillar 2 rules that impose a global minimum tax rate of 15%. Numerous countries, including European Union member states, have enacted or are expected to enact legislation with general implementation of a global minimum tax rate by January 1, 2025. The Company has evaluated the potential impact of the rules based on the most recently available information and estimates that the impact to the Company is immaterial. The Company will continue to monitor legislative developments to determine if there are significant changes to Pillar 2 rules that could lead to a material impact.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act, which introduces a wide-ranging set of tax reform provisions. These provisions are scheduled to take affect beginning in our fiscal year 2026. The Company is currently evaluating the potential impact of this law.

**12. Derivative Financial Instruments**

The Company uses derivative financial instruments, primarily foreign currency forward exchange contracts, for the purposes of managing foreign currency exchange rate risk on expected future cash flows.

As of June 30, 2025, the Company had outstanding foreign currency forward exchange contracts for the sale of $197 million and the purchase of $124 million of foreign currencies at fixed rates that will be settled by September 2025. As of September 30, 2024, the Company had no foreign currency forward exchange contracts outstanding.

The Company recorded realized pre-tax gains of $7 million and unrealized pre-tax losses of $5 million related to its foreign currency forward exchange contracts in the condensed consolidated statement of operations as other expense for the nine months ended June 30, 2025. The Company recorded realized pre-tax losses of $1 million and unrealized pre-tax gains of $1 million related to its foreign currency forward exchange contracts in the condensed consolidated statement of operations as other expense for the nine months ended June 30, 2024.

The following is a summary of amounts recorded in the consolidated balance sheets pertaining to the Company's derivative instruments at June 30, 2025 and September 30, 2024:

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| | | |
|:---|:---|:---|
| | **June 30,<br>2025** | **September 30,<br>2024** |
| | **(in millions)** | **(in millions)** |
| *Other Current Assets:* |  |  |
| Foreign currency forward exchange contracts (a) | 1 |  |
| *Other Current Liabilities:* |  |  |
| Foreign currency forward exchange contracts (a) | (6) |  |

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______________________________________

(a)Includes $9 million and $14 million of foreign exchange derivative contracts in asset and liability positions, respectively, which net to $1 million of current assets and $6 million of current liabilities, respectively.

**13. Segment Information**

Based on the nature of its products and services, the Company classifies its business interests into two fundamental operations: Recorded Music and Music Publishing, which also represent the reportable segments of the Company. Information as to each of these operations is set forth below. The Company evaluates performance based on several factors, of which the primary financial measure is operating income (loss) before non-cash depreciation of tangible assets and non-cash amortization of intangible assets adjusted to exclude the impact of non-cash stock-based compensation and other related expenses and certain items that affect comparability including but not limited to gains or losses on divestitures and expenses related to restructuring and transformation initiatives, which includes costs associated with the Company's financial transformation initiative to design and implement new information technology and upgrade our finance infrastructure ("Adjusted OIBDA"). Items excluded are not viewed to contribute directly to management's evaluation of operating results.

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The accounting policies of the Company's business segments are the same as those described in Note 2, "Summary of Significant Accounting Policies," to the consolidated financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2024. The Company accounts for intersegment sales at fair value as if the sales were to third parties. While intercompany transactions are treated like third-party transactions to determine segment performance, the revenues (and corresponding expenses recognized by the segment that is counterparty to the transaction) are eliminated in consolidation, and therefore, do not themselves impact consolidated results.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Recorded<br>Music** | **Music<br>Publishing** | **Corporate<br>expenses and<br>eliminations** | **Total** |
| **Three Months Ended** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **June 30, 2025** | | | | |
| Revenues | $1354 | $336 | $(1) | $1689 |
| Adjusted OIBDA | 321 | 96 | (44) | 373 |
| **June 30, 2024** |  |  |  |  |
| Revenues | $1251 | $305 | $(2) | $1554 |
| Adjusted OIBDA | 281 | 79 | (44) | 316 |
|  | **Recorded<br>Music** | **Music<br>Publishing** | **Corporate<br>expenses and<br>eliminations** | **Total** |
| **Nine Months Ended** | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| **June 30, 2025** |  |  |  |  |
| Revenues | $3874 | $969 | $(4) | $4839 |
| Adjusted OIBDA | 914 | 264 | (139) | 1039 |
| **June 30, 2024** |  |  |  |  |
| Revenues | 3885 | 915 | (4) | 4796 |
| Adjusted OIBDA | 965 | 247 | (133) | 1079 |

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Adjusted OIBDA is not a measure defined by U.S. GAAP but is computed using amounts that are determined in accordance with U.S. GAAP. A reconciliation of the Company's Adjusted OIBDA to operating income is presented below.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | **For the Nine Months Ended<br>June 30,** | **For the Nine Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| Operating income | $169 | $207 | $551 | $680 |
| Amortization expense | 67 | 55 | 186 | 167 |
| Depreciation expense | 29 | 25 | 86 | 77 |
| Restructuring and impairments | 69 | 1 | 109 | 96 |
| Transformation initiative costs | 19 | 18 | 54 | 56 |
| Executive transition costs | 4 |  | 4 |  |
| Net gain on divestitures |  | (1) |  | (32) |
| Non-cash stock-based compensation and other related costs | 16 | 11 | 49 | 35 |
| Adjusted OIBDA | $373 | $316 | $1039 | $1079 |

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**14. Additional Financial Information**

**Supplemental Cash Flow Disclosures**

The Company made interest payments of approximately $43 million and $35 million during the three months ended June 30, 2025 and 2024, respectively, and approximately $114 million and $125 million during the nine months ended June 30, 2025 and 2024, respectively. The Company paid approximately $50 million and $33 million of income and withholding taxes, net of refunds, for the three months ended June 30, 2025 and 2024, respectively, and approximately $151 million and $105 million of income and withholding taxes, net of refunds, for the nine months ended June 30, 2025 and 2024, respectively. Non-cash investing activities were approximately $32 million related to business combinations and the acquisition of music publishing rights and music catalogs during the nine months ended June 30, 2025, and $18 million related to the acquisition of music publishing rights and music catalogs during the nine months ended June 30, 2024.

**Net Gain on Divestitures**

The Company recognized a pre-tax gain of $1 million during the three months ended June 30, 2024, in connection with the divestiture of non-core owned and operated media properties. The Company recognized a pre-tax gain of $32 million during the nine months ended June 30, 2024 in connection with the divestiture of certain sound recordings rights. For each period, the divestiture has been reflected as a net gain on divestiture in the accompanying condensed consolidated statement of operations.

**Net Gain on Sale of Investments** 

The Company recognized a pre-tax realized net gain of $29 million during the nine months ended June 30, 2025 in connection with the sale of an investment which has been presented within the Other income (expense) line of the accompanying condensed consolidated statement of operations.

**Dividends**

The Company's ability to pay dividends may be restricted by covenants in the credit agreement for the Revolving Credit Facility which are currently suspended but which will be reinstated if Acquisition Corp.'s Total Indebtedness to EBITDA Ratio increases above 3.50:1.00 and the term loans do not achieve an investment grade rating.

The Company has been paying quarterly cash dividends to holders of its Class A Common Stock and Class B Common Stock. The declaration of each dividend will continue to be at the discretion of the Company's board of directors and will depend on the Company's financial condition, earnings, liquidity and capital requirements, level of indebtedness, contractual restrictions with respect to payment of dividends, restrictions imposed by Delaware law, general business conditions and any other factors that the Company's board of directors deems relevant in making such a determination. Therefore, there can be no assurance that the Company will pay any dividends to holders of the Company's common stock, or as to the amount of any such dividends.

On May 16, 2025, the Company's board of directors declared a cash dividend of $0.18 per share on the Company's Class A Common Stock and Class B Common Stock, as well as related payments under certain stock-based compensation plans, which was paid to stockholders on June 3, 2025. The Company paid an aggregate of approximately $94 million and $283 million, or $0.18 and $0.54 per share, in cash dividends to stockholders and participating security holders for the three and nine months ended June 30, 2025.

On August 7, 2025, the Company's board of directors declared a cash dividend of $0.19 per share on the Company's Class A Common Stock and Class B Common Stock, as well as related payments under certain stock-based compensation plans, payable on September 3, 2025 to stockholders of record as of the close of business on August 20, 2025.

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**15. Fair Value Measurements**

The following tables show the fair value of the Company's financial instruments that are required to be measured at fair value as of June 30, 2025 and September 30, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of June 30, 2025** | **Fair Value Measurements as of June 30, 2025** | **Fair Value Measurements as of June 30, 2025** | **Fair Value Measurements as of June 30, 2025** |
| | **(Level 1)** | **(Level 2)** | **(Level 3)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| *Other Current Assets:* |  |  |  |  |
| Foreign currency forward exchange contracts (a) | $— | $1 | $— | $1 |
| *Other current liabilities:* |  |  |  |  |
| Foreign currency forward exchange contracts (a) | $— | $(6) | $— | $(6) |
| *Other noncurrent assets:* |  |  |  |  |
| Equity investments with readily determinable fair value (b) | 9 |  |  | 9 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Fair Value Measurements as of September 30, 2024** | **Fair Value Measurements as of September 30, 2024** | **Fair Value Measurements as of September 30, 2024** | **Fair Value Measurements as of September 30, 2024** |
| | **(Level 1)** | **(Level 2)** | **(Level 3)** | **Total** |
| | **(in millions)** | **(in millions)** | **(in millions)** | **(in millions)** |
| *Other noncurrent assets:* |  |  |  |  |
| Equity investment with readily determinable fair value (b) | 9 |  |  | 9 |

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______________________________________

(a)The fair value of foreign currency forward exchange contracts is based on dealer quotes of market forward rates and reflects the amount that the Company would receive or pay at their maturity dates for contracts involving the same currencies and maturity dates.

(b)These represent equity investments with a readily determinable fair value. The Company has measured its investments to fair value in accordance with ASC 321, *Investments—Equity Securities,* based on quoted prices in active markets.

The majority of the Company's non-financial instruments, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be re-measured to fair value on a recurring basis. These assets are evaluated for impairment if certain triggering events occur. If such evaluation indicates that impairment exists, the asset is written down to its fair value. In addition, an impairment analysis is performed at least annually for goodwill and indefinite-lived intangible assets.

**Equity Investments Without Readily Determinable Fair Value**

The Company evaluates its equity investments without readily determinable fair values for impairment if factors indicate that a significant decrease in value has occurred. The Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. In the three and nine month periods ended June 30, 2025, the Company recorded approximately $1 million and $4 million of impairment charges on these investments, respectively. The Company did not record any impairment charges on these investments during the three months ended June 30, 2024 and recorded approximately $1 million of impairment charges on these investments during the nine months ended June 30, 2024. In addition, there were no observable price changes events that were completed during the three and nine months ended June 30, 2025 and 2024.

**Fair Value of Debt**

Based on the level of interest rates prevailing at June 30, 2025, the fair value of the Company's debt was $4.217 billion. Based on the level of interest rates prevailing at September 30, 2024, the fair value of the Company's debt was $3.836 billion. The fair value of the Company's debt instruments is determined using quoted market prices from less active markets or by using quoted market prices for instruments with identical terms and maturities; both approaches are considered a Level 2 measurement.

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**16. Subsequent Events**

***2025 Restructuring Plan***

On July 1, 2025, the Company announced a strategic restructuring plan (the "2025 Restructuring Plan") designed to free up funds to invest in music and to accelerate the Company's long-term growth. The Company expects the 2025 Restructuring Plan to generate pre-tax cost savings of approximately $300 million on an annualized run-rate basis by the end of fiscal year 2027 and expects the majority of the cost savings under the 2025 Restructuring Plan to be accretive to Adjusted OIBDA. There were no charges recognized under the 2025 Restructuring Plan for the three and nine months ended June 30, 2025.

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**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

You should read the following discussion of our results of operations and financial condition with the unaudited interim financial statements included elsewhere in this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2025 (the "Quarterly Report").

**"SAFE HARBOR" STATEMENT UNDER PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995**

This Quarterly Report includes forward-looking statements and cautionary statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "shall," "should," "would," "could," "seeks," "aims," "projects," "is optimistic," "intends," "plans," "estimates," "anticipates" or other comparable terms or the negative thereof. Forward-looking statements include, without limitation, all matters that are not historical facts. They appear in a number of places throughout this Quarterly Report and include, without limitation, our ability to compete in the highly competitive markets in which we operate, statements regarding our ability to develop talent and attract future talent, our ability to reduce future capital expenditures, our ability to monetize our music, including through new distribution channels and formats to capitalize on the growth areas of the music entertainment industry, our ability to effectively deploy our capital, the development of digital music and the effect of digital distribution channels on our business, including whether we will be able to achieve higher margins from digital sales, the success of strategic actions we are taking to accelerate our transformation as we redefine our role in the music entertainment industry, the effectiveness of our ongoing efforts to reduce overhead expenditures and manage our variable and fixed cost structure and our ability to generate expected cost savings from such efforts, our success in limiting piracy, the growth of the music entertainment industry and the effect of our and the industry's efforts to combat piracy on the industry, our intention and ability to pay dividends or repurchase or retire our outstanding debt or notes in open market purchases, privately or otherwise, the impact on us of potential strategic transactions, our ability to fund our future capital needs and the effect of litigation on us.

Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this Quarterly Report. In addition, even if our results of operations, financial condition and cash flows, and the development of the market in which we operate, are consistent with the forward-looking statements contained in this Quarterly Report, those results or developments may not be indicative of results or developments in subsequent periods. New factors emerge from time to time that may cause our business not to develop as we expect, and it is not possible for us to accurately predict all of them. Factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our inability to compete successfully in the highly competitive markets in which we operate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to identify, sign and retain recording artists and songwriters and the existence or absence of superstar releases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• slower growth in streaming adoption and revenue;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our dependence on a limited number of digital music services for the online distribution and marketing of our music and their ability to significantly influence the pricing structure for online music stores;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the popular demand for particular recording artists and/or songwriters and music and the timely delivery to us of music by major recording artists and/or songwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to the effects of climate change and natural or man-made disasters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the diversity and quality of our recording artists, songwriters and releases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trends, developments or other events in the United States and in some foreign countries in which we operate, including the impact of tariffs imposed or threatened by the U.S. or foreign governments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with our non-U.S. operations, including limited legal protections of our intellectual property rights and restrictions on the repatriation of capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• unfavorable currency exchange rate fluctuations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of heightened and intensive competition in the recorded music and music publishing industries and our inability to execute our business strategy;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant fluctuations in our operations, cash flows and the trading price of our common stock from period to period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our failure to attract and retain our executive officers and other key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant portion of our revenues are subject to rate regulation either by government entities or by local third-party collecting societies throughout the world and rates on other income streams may be set by governmental proceedings, which may limit our profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with obtaining, maintaining, protecting and enforcing our intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our involvement in intellectual property litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• threats to our business associated with digital piracy, including organized industrial piracy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with the development and use of artificial intelligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an impairment in the carrying value of goodwill or other intangible and long-lived assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of, and risks inherent in, acquisitions or other business combinations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks inherent to our outsourcing certain finance and accounting functions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fact that we have engaged in substantial restructuring activities in the past, and may need to implement further restructurings in the future and our restructuring efforts may not be successful or generate expected cost savings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our and our service providers' ability to maintain the security of information relating to our customers, employees and vendors and our music;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to evolving laws and regulations concerning data privacy which might result in increased regulation and different industry standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• new legislation that affects the terms of our contracts with recording artists and songwriters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a potential loss of catalog if it is determined that recording artists have a right to recapture U.S. rights in their recordings under the U.S. Copyright Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of our substantial leverage on our ability to raise additional capital to fund our operations, on our ability to react to changes in the economy or our industry and on our ability to meet our obligations under our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability to generate sufficient cash to service all of our indebtedness, and the risk that we may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fact that our debt agreements contain restrictions that may limit our flexibility in operating our business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the significant amount of cash required to service our indebtedness and the ability to generate cash or refinance indebtedness as it becomes due depends on many factors, some of which are beyond our control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks of downgrade, suspension or withdrawal of the rating assigned by a rating agency to us could impact our cost of capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the dual class structure of our common stock and Access's existing ownership of our Class B Common Stock have the effect of concentrating control over our management and affairs and over matters requiring stockholder approval with Access;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the fact that we maintain certain cash deposits in excess of the Federal Deposit Insurance Corporation ("FDIC") insurance limits, which could have an adverse effect on liquidity and financial performance in the event of a bank failure or receivership; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks related to other factors discussed under "Risk Factors" of this Quarterly Report and in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

You should read this Quarterly Report completely and with the understanding that actual future results may be materially different from expectations. All forward-looking statements made in this Quarterly Report are qualified by these cautionary statements. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, and changes in future operating results over time or otherwise.

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Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless expressed as such, and should only be viewed as historical data.

Other risks, uncertainties and factors, including those discussed in the "Risk Factors" of our Quarterly Reports and our Annual Report on Form 10-K, could cause our actual results to differ materially from those projected in any forward-looking statements we make. You should read carefully the factors described in the "Risk Factors" section of our Quarterly Reports and our Annual Report on Form 10-K to better understand the risks and uncertainties inherent in our business and underlying any forward-looking statements.

**INTRODUCTION**

Warner Music Group Corp. (the "Company") was formed on November 21, 2003. The Company is the direct parent of WMG Holdings Corp. ("Holdings"), which is the direct parent of WMG Acquisition Corp. ("Acquisition Corp."). Acquisition Corp. is one of the world's major music entertainment companies.

The Company and Holdings are holding companies that conduct substantially all of their business operations through their subsidiaries. The terms "we," "us," "our," "ours" and the "Company" refer collectively to Warner Music Group Corp. and its consolidated subsidiaries, except where otherwise indicated.

Management's discussion and analysis of financial condition and results of operations ("MD&A") is provided as a supplement to the unaudited financial statements and related notes thereto included elsewhere herein to help provide an understanding of our financial condition, changes in financial condition and results of our operations. MD&A is organized as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Business overview.* This section provides a general description of our business, as well as a discussion of factors that we believe are important in understanding our results of operations and comparability and in anticipating future trends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Results of operations.* This section provides an analysis of our results of operations for the three and nine months ended June 30, 2025 and June 30, 2024. This analysis is presented on both a consolidated and segment basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Financial condition and liquidity.* This section provides an analysis of our cash flows for the nine months ended June 30, 2025 and June 30, 2024, as well as a discussion of our financial condition and liquidity as of June 30, 2025. The discussion of our financial condition and liquidity includes recent debt financings and a summary of the key debt covenant compliance measures under our debt agreements.

**Use of Adjusted OIBDA**

We evaluate our operating performance based on several factors, including our primary financial measure of operating income (loss) before non-cash depreciation of tangible assets and non-cash amortization of intangible assets adjusted to exclude the impact of non-cash stock-based compensation and other related expenses and certain items that affect comparability including but not limited to gains or losses on divestitures and expenses related to restructuring and transformation initiatives ("Adjusted OIBDA"). We consider Adjusted OIBDA to be an important indicator of the operational strengths and performance of our businesses. However, a limitation of the use of Adjusted OIBDA as a performance measure is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our businesses. Accordingly, Adjusted OIBDA should be considered in addition to, not as a substitute for, operating income (loss), net income (loss) attributable to Warner Music Group Corp. and other measures of financial performance reported in accordance with United States generally accepted accounting principles ("U.S. GAAP"). In addition, our definition of Adjusted OIBDA may differ from similarly titled measures used by other companies. A reconciliation of consolidated Adjusted OIBDA to operating income (loss) and net income (loss) attributable to Warner Music Group Corp. is provided in our "Results of Operations."

**Use of Constant Currency**

As exchange rates are an important factor in understanding period to period comparisons, we believe the presentation of revenue and Adjusted OIBDA on a constant-currency basis in addition to reported results helps improve the ability to understand our operating results and evaluate our performance in comparison to prior periods. Constant-currency information compares revenue and Adjusted OIBDA between periods as if exchange rates had remained constant period over period. We use revenue and Adjusted OIBDA on a constant-currency basis as one measure to evaluate our performance. We calculate constant-currency by calculating prior-year revenue and Adjusted OIBDA using current-year foreign currency exchange rates. We generally refer to such amounts calculated on a constant-currency basis as "excluding the impact of foreign currency exchange rates." Revenue and Adjusted OIBDA on a constant-currency basis should be considered in addition to, not as a substitute for, revenue and Adjusted OIBDA reported in

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accordance with U.S. GAAP. Revenue and Adjusted OIBDA on a constant-currency basis, as we present it, may not be comparable to similarly titled measures used by other companies and are not a measure of performance presented in accordance with U.S. GAAP.

**BUSINESS OVERVIEW**

We are one of the world's leading music entertainment companies. Our renowned family of iconic record labels, including Atlantic Records, Warner Records, Elektra Records and Parlophone Records, is home to many of the world's most popular and influential recording artists. In addition, Warner Chappell Music, our global music publishing business, boasts an extraordinary catalog that includes timeless standards and contemporary hits, representing works by over 180,000 songwriters and composers, with a global collection of more than one and a half million musical compositions. We classify our business interests into two fundamental operations: Recorded Music and Music Publishing. A brief description of each of those operations is presented below.

**Components of Our Operating Results**

***Recorded Music Operations***

In the United States, our Recorded Music business is conducted principally through our major record labels—Atlantic Records and Warner Records. In October 2018, we launched Elektra Music Group in the United States as a standalone label group, which comprises the Elektra, Fueled by Ramen and Roadrunner labels, and in December 2021, we acquired 300 Entertainment and subsequently launched 300 Elektra Entertainment, or 3EE, a frontline label group that brings together the multi-genre power of 300 Entertainment and Elektra Music Group. Our Recorded Music business also includes Rhino Entertainment, a division that specializes in marketing our recorded music catalog through compilations, reissuances of previously released music and video titles and releasing previously unreleased material from our vault. We also conduct our Recorded Music business through a collection of additional record labels including Asylum, Big Beat, Canvasback, East West, Erato, FFRR, Nonesuch, Parlophone, Reprise, Sire, Spinnin' Records, TenThousand Projects, Warner Classics and Warner Music Nashville.

Outside the United States, our Recorded Music business is conducted in more than 70 countries through various subsidiaries, affiliates and non-affiliated licensees. Internationally, we engage in the same activities as in the United States: discovering and signing artists and distributing, selling, marketing and promoting their music. In most cases, we also market, promote, distribute and sell the music of those recording artists for whom our domestic record labels have international rights. In certain smaller markets, we license the right to distribute and sell our music to non-affiliated third-party record labels.

Our Recorded Music business' operations include WMX, a next generation services division that connects artists with fans and amplifies brands in creative, immersive, and engaging ways. This division includes a rebranded WEA commercial services & marketing network (formerly Warner-Elektra-Atlantic Corporation, or WEA Corp.), which markets, distributes and sells music and video products to retailers and wholesale distributors, as well as acting as the Company's media and creative content arm. Our business' distribution operations also include Alternative Distribution Alliance ("ADA"), which markets, distributes and sells the products of independent labels to retail and wholesale distributors; and various distribution centers and ventures operated internationally.

In addition to our music being sold in physical retail outlets, our music is also sold in physical form to online physical retailers, such as amazon.com, barnesandnoble.com and bestbuy.com, and distributed in digital form to an expanded universe of digital partners, including streaming services such as those of Amazon, Apple, Deezer, SoundCloud, Spotify, Tencent Music and YouTube, radio services such as iHeart Radio and SiriusXM and other download services.

We have integrated the marketing of digital content into all aspects of our business, including artists and repertoire ("A&R") and distribution. Our business development executives work closely with A&R departments to ensure that while music is being produced, digital assets are also created with all distribution channels in mind, including streaming services, social networking sites, online portals and music-centered destinations. We also work side-by-side with our online and mobile partners to test new concepts. We believe existing and new digital businesses will be a significant source of growth and will provide new opportunities to successfully monetize our assets and create new revenue streams. The proportion of digital revenues attributable to each distribution channel varies by region and proportions may change as the introduction of new technologies continues. As one of the world's largest music entertainment companies, we believe we are well positioned to take advantage of growth in digital distribution and emerging technologies to maximize the value of our assets.

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We have diversified our revenues beyond our traditional businesses by entering into expanded-rights deals with recording artists in order to partner with such artists in other aspects of their careers. Under these agreements, we provide services to and participate in recording artists' activities outside the traditional recorded music business such as touring, merchandising and sponsorships. We have built and acquired artist services capabilities and platforms for marketing and distributing this broader set of music-related rights and participating more widely in the monetization of the artist brands we help create. We believe that entering into expanded-rights deals and enhancing our artist services capabilities in areas such as merchandising, VIP ticketing, fan clubs, concert promotion and management has permitted us to diversify revenue streams and capitalize on other revenue opportunities. This provides for improved long-term relationships with our recording artists and allows us to more effectively connect recording artists and fans.

Recorded Music revenues are derived from four main sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Digital*: the rightsholder receives revenues with respect to streaming and download services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Physical*: the rightsholder receives revenues with respect to sales of physical products such as vinyl, CDs and DVDs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Artist services and expanded-rights*: the rightsholder receives revenues with respect to our artist services businesses and our participation in expanded rights, including advertising, merchandising such as direct-to-consumer sales, touring, concert promotion, ticketing, sponsorship, fan clubs, artist websites, social publishing, and artist and brand management; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Licensing*: the rightsholder receives royalties or fees for the right to use sound recordings in combination with visual images such as in films or television programs, television commercials and video games; the rightsholder also receives royalties if sound recordings are performed publicly through broadcast of music on television, radio and cable, and in public spaces such as shops, workplaces, restaurants, bars and clubs.

The principal costs associated with our Recorded Music business are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• A&R costs*: the costs associated with (i) paying royalties to recording artists, producers, songwriters, other copyright holders and trade unions; (ii) signing and developing recording artists; and (iii) creating master recordings in the studio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Product costs*: the costs to manufacture, package and distribute products to wholesale and retail distribution outlets, the royalty costs associated with distributing products of independent labels to wholesale and retail distribution outlets, as well as the costs related to our artist services business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Selling and marketing expenses*: the costs associated with the promotion and marketing of recording artists and music, including costs to produce music videos for promotional purposes and artist tour support; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• General and administrative expenses*: the costs associated with general overhead and other administrative expenses.

***Music Publishing Operations***

While Recorded Music is focused on marketing, promoting, distributing and licensing a particular recording of a musical composition, Music Publishing is an intellectual property business focused on generating revenue from uses of the musical composition itself. In return for promoting, placing, marketing and administering the creative output of a songwriter, or engaging in those activities for other rightsholders, our Music Publishing business shares the revenues generated from use of the musical compositions with the songwriter or other rightsholders.

The operations of our Music Publishing business are conducted principally through Warner Chappell Music, our global music publishing company headquartered in Los Angeles, with operations in over 70 countries through various subsidiaries, affiliates, and non-affiliated licensees and sub-publishers. We own or control rights to more than one and a half million musical compositions, including numerous pop hits, American standards, folk songs and motion picture and theatrical compositions. Assembled over decades, our award-winning catalog includes over 180,000 songwriters and composers and a diverse range of genres including pop, rock, jazz, classical, country, R&B, hip-hop, rap, reggae, Latin, folk, blues, symphonic, soul, Broadway, electronic, alternative and gospel. Warner Chappell Music also administers the music and soundtracks of several third-party television and film producers and studios. We have an extensive production music catalog collectively branded as Warner Chappell Production Music.

Music Publishing revenues are derived from five main sources:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Digital*: the rightsholder receives revenues with respect to musical compositions embodied in recordings distributed in streaming services, download services, digital performance and other digital music services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Performance*: the rightsholder receives revenues if the musical composition is performed publicly through broadcast of music on television, radio and cable and in retail locations (e.g., bars and restaurants), live performance at a

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concert or other venue (*e.g.*, arena concerts and nightclubs), and performance of music in staged theatrical productions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Mechanical*: the rightsholder receives revenues with respect to musical compositions embodied in recordings sold in any physical format or configuration such as vinyl, CDs and DVDs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Synchronization*: the rightsholder receives revenues for the right to use the musical composition in combination with visual images such as in films or television programs, television commercials and video games as well as from other uses such as in toys or novelty items and merchandise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Other*: the rightsholder receives revenues for use in sheet music and other uses.

The principal costs associated with our Music Publishing business are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• A&R costs*: the costs associated with (i) paying royalties to songwriters, co-publishers and other copyright holders in connection with income generated from the uses of their works and (ii) signing and developing songwriters; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Selling and marketing, general overhead and other administrative expenses*: the costs associated with selling and marketing, general overhead and other administrative expenses.

**Recent Events and Factors Affecting Results of Operations and Comparability *2024 Strategic Restructuring Plan***

In 2024, the Company announced a strategic restructuring plan (the "2024 Strategic Restructuring Plan") designed to free up additional funds to invest in music and accelerate the Company's growth for the next decade. The 2024 Strategic Restructuring Plan is substantially complete and the remaining associated cash payments are expected to be made by the end of fiscal year 2026.

The cost savings under the 2024 Strategic Restructuring Plan will be achieved through a combination of the disposal or winding down of non-core operations, continuing to manage overhead, sharpening focus, expanding shared services, and implementing previously disclosed expected operational efficiencies made possible by the Company's financial transformative initiative. The Company expects allocating a majority of the costs savings to increase investment in the Company's core Recorded Music and Music Publishing businesses, new skill sets and tech capabilities.

For the three months ended June 30, 2025, the Company recognized a $1 million benefit in our Recorded Music segment due a change in estimate of severance costs. For the nine months ended June 30, 2025, total severance and other contract termination costs recorded in connection with the 2024 Strategic Restructuring Plan were $7 million, of which $8 million of expense was recognized in our Recorded Music segment while there was a $1 million benefit recognized at Corporate due to a change in estimate. Additionally, for the nine months ended June 30, 2025, the Company recognized $32 million of impairment losses, all of which were recognized in our Recorded Music segment. Impairment charges recognized during the period primarily relate to the write-off of certain long-form audiovisual production assets and lease termination costs for office closures.

*Other Impairments*

For the three and nine months ended June 30, 2025, the Company recognized a pre-tax impairment charge of $70 million ($48 million after-tax) within the Recorded Music segment for long-lived assets associated with certain of the Company's non-core e-tailer operations due to a triggering event that indicated the carrying amount was no longer recoverable. The recoverable fair value was determined based on current market indicators.

***BMG Termination***

In September 2023, the Company terminated its distribution agreement with BMG as BMG began to bring digital distribution in-house and license directly with digital service partners in fiscal 2024 while also licensing its physical distribution with a different provider (the "BMG Termination"). Alternative Distribution Alliance ("ADA"), which is part of our Recorded Music business, had previously been distributing BMG's recorded music catalog and revenues are reported within our Recorded Music segment. The shift to digital direct deals by BMG is a phased in-sourcing of distribution during the current fiscal year and we expect BMG to be rolled off by the end of the current fiscal year.

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**RESULTS OF OPERATIONS**

**Three Months Ended June 30, 2025 Compared with Three Months Ended June 30, 2024**

***Consolidated Results***

***Revenues***

Our revenues were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenue by Type** |  |  |  |  |
| Digital | $929 | $882 | $47 | 5% |
| Physical | 119 | 120 | (1) | -1% |
| Total digital and physical | 1048 | 1002 | 46 | 5% |
| Artist services and expanded-rights | 195 | 159 | 36 | 23% |
| Licensing | 111 | 90 | 21 | 23% |
| Total Recorded Music | 1354 | 1251 | 103 | 8% |
| Performance | 58 | 52 | 6 | 12% |
| Digital | 204 | 194 | 10 | 5% |
| Mechanical | 16 | 13 | 3 | 23% |
| Synchronization | 54 | 42 | 12 | 29% |
| Other | 4 | 4 |  | —% |
| Total Music Publishing | 336 | 305 | 31 | 10% |
| Intersegment eliminations | (1) | (2) | 1 | -50% |
| Total revenues | $1689 | $1554 | $135 | 9% |
| **Revenue by Geographical Location** |  |  |  |  |
| U.S. Recorded Music | $536 | $517 | $19 | 4% |
| U.S. Music Publishing | 186 | 161 | 25 | 16% |
| Total U.S. | 722 | 678 | 44 | 6% |
| International Recorded Music | 818 | 734 | 84 | 11% |
| International Music Publishing | 150 | 144 | 6 | 4% |
| Total international | 968 | 878 | 90 | 10% |
| Intersegment eliminations | (1) | (2) | 1 | -50% |
| Total revenues | $1689 | $1554 | $135 | 9% |

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***Total Revenues***

Total revenues increased by $135 million, or 9%, to $1,689 million for the three months ended June 30, 2025 from $1,554 million for the three months ended June 30, 2024. Revenue growth was favorably impacted by the settlement of certain copyright infringement cases (the "Copyright Settlement"), which resulted in $16 million higher Recorded Music revenue. The prior-year quarter included $22 million of incremental revenue recognized in Recorded Music from a Digital Service Provider ("DSP") for performance obligations satisfied in previous periods (the "DSP True-Up Payments"). Recorded Music revenue growth was also unfavorably impacted by the BMG Termination, which resulted in $14 million less Recorded Music revenue compared to the prior-year quarter. The increase in total revenue includes $24 million of favorable currency exchange fluctuations. Prior to intersegment eliminations, Recorded Music and Music Publishing revenues represented 80% and 20% of total revenue for each of the three months ended June 30, 2025 and June 30, 2024, respectively. Prior to intersegment eliminations, U.S. and international revenues represented 43% and 57% of total revenues for the three months ended June 30, 2025, respectively, and 44% and 56% of total revenues for the three months ended June 30, 2024, respectively.

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Total digital revenues after intersegment eliminations increased by $57 million, or 5%, to $1,132 million for the three months ended June 30, 2025 from $1,075 million for the three months ended June 30, 2024. Total streaming revenue increased by $42 million, driven by growth in Recorded Music and Music Publishing. Total streaming revenue includes $11 million of favorable currency exchange fluctuations. Prior to intersegment eliminations, total digital revenues for the three months ended June 30, 2025 were composed of U.S. revenues of $535 million and international revenues of $598 million, or 47% and 53% of total digital revenues, respectively. Prior to intersegment eliminations, total digital revenues for the three months ended June 30, 2024 were composed of U.S. revenues of $504 million and international revenues of $572 million, or 47% and 53% of total digital revenues, respectively.

Recorded Music revenues increased by $103 million, or 8%, to $1,354 million for the three months ended June 30, 2025 from $1,251 million for the three months ended June 30, 2024. The increase includes $21 million of favorable currency exchange fluctuations. U.S. Recorded Music revenues were $536 million and $517 million, or 40% and 41% of consolidated Recorded Music revenues for each of the three months ended June 30, 2025 and June 30, 2024, respectively. International Recorded Music revenues were $818 million and $734 million, or 60% and 59%, of consolidated Recorded Music revenues for each of the three months ended June 30, 2025 and June 30, 2024, respectively.

The overall increase in Recorded Music revenue was driven by increases in digital, artist services and expanded-rights and licensing revenues, partially offset by a decrease in physical revenue. Digital revenue increased by $47 million, or 5%, which includes a favorable impact of currency exchange fluctuations of $10 million. Revenue from streaming services increased by $32 million to $895 million for the three months ended June 30, 2025 from $863 million for the three months ended June 30, 2024. The increase in streaming revenue was driven by subscription streaming growth and includes a favorable impact of foreign currency exchange rates of $9 million, partially offset by the unfavorable impact of the DSP True-Up Payments and the BMG Termination of $4 million in the prior-year quarter. Download and other digital revenues increased by $15 million, or 79%, to $34 million for the three months ended June 30, 2025 from $19 million for the three months ended June 30, 2024 due to the impact of the Copyright Settlement of $16 million, partially offset by the continued shift to streaming services. Licensing revenue increased by $21 million, or 23%, driven by higher licensing activity primarily in the U.K. and China, and timing of other copyright infringement settlements. Licensing revenue includes a favorable impact of foreign currency exchange rates of $3 million. Artist services and expanded-rights revenue increased by $36 million, or 23%, due to higher concert promotion revenue primarily in France and Spain, and a favorable impact of foreign currency exchange rates of $4 million. Physical revenue, which includes a favorable impact of foreign currency exchange rates of $4 million, decreased by $1 million, or 1%, as growth from strong releases in Korea and Japan was offset by the $10 million impact of the BMG Termination. Top sellers in the quarter included BAEKHYUN, ROSÉ, Bruno Mars, Grateful Dead, and Teddy Swims.

Music Publishing revenues increased by $31 million, or 10%, to $336 million for the three months ended June 30, 2025 from $305 million for the three months ended June 30, 2024. U.S. Music Publishing revenues were $186 million and $161 million, or 55% and 53% of consolidated Music Publishing revenues, for the three months ended June 30, 2025 and June 30, 2024, respectively. International Music Publishing revenues were $150 million and $144 million, or 45% and 47% of consolidated Music Publishing revenues, for the three months ended June 30, 2025 and June 30, 2024, respectively.

The overall increase in Music Publishing revenue was driven by increases in digital, performance, synchronization, and mechanical revenues. Digital revenue increased by $10 million, or 5%, driven by an increase in streaming revenue, which includes a favorable impact of foreign currency exchange rates of $1 million. Revenue from streaming services grew by $10 million, or 5%, to $202 million for the three months ended June 30, 2025 from $192 million for the three months ended June 30, 2024, driven by the impact of digital deal renewals, primarily in the U.S, and a favorable impact of foreign currency exchange rates of $1 million. Performance revenue increased by $6 million, or 12%, driven by growth from concerts, radio and live events primarily in Europe, and a favorable impact of foreign currency exchange rates of $1 million. Mechanical revenue increased by $3 million, or 23%, and includes a favorable impact of foreign currency exchange rates of $1 million. Synchronization revenue increased by $12 million, or 29%, attributable to timing of other copyright infringement settlements, higher television and commercial licensing activity, and the $3 million impact of our acquisition of Tempo.

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***Revenue by Geographical Location***

U.S. revenue increased by $44 million, or 6%, to $722 million for the three months ended June 30, 2025 from $678 million for the three months ended June 30, 2024. U.S. Recorded Music revenue increased by $19 million, or 4%. U.S. Recorded Music digital revenue increased by $20 million, or 5%, driven by higher download and other digital revenue of $15 million, or 150%, including the impact of the Copyright Settlement in the quarter, and higher streaming revenue of $5 million, or 1%. U.S. Recorded Music licensing revenue increased by $8 million, or 30%, driven by timing of other copyright infringement settlements. U.S. Recorded Music artist services and expanded-rights revenues decreased by $5 million, or 10%, driven by lower merchandising revenue, and physical revenue decreased by $4 million, or 8%. U.S. Music Publishing revenue increased by $25 million, or 16%, to $186 million for the three months ended June 30, 2025 from $161 million for the three months ended June 30, 2024. U.S. Music Publishing digital revenue increased by $11 million, or 10%, attributable to higher streaming revenue of $11 million, or 10%. U.S. Music Publishing streaming revenue reflects impact of digital deal renewals. U.S. Music Publishing performance and mechanical revenues remained constant during the three months ended June 30, 2025 compared to the three months ended June 30, 2024. U.S. Music Publishing synchronization revenue increased by $13 million, or 54%, driven by timing of other copyright infringement settlements, higher television and commercial licensing activity and the impact of acquisitions.

International revenue increased by $90 million, or 10%, to $968 million for the three months ended June 30, 2025 from $878 million for the three months ended June 30, 2024. Excluding the favorable impact of foreign currency exchange rates of $23 million, International revenue increased by $67 million, or 7%. International Recorded Music revenue increased by $84 million, which includes a favorable impact of foreign currency exchange rates of $21 million, driven by growth across digital, artist services and expanded rights, licensing and physical revenues. International Recorded Music licensing revenue increased by $13 million, or 21%, driven by licensing deals primarily in the U.K. and China, and timing of other copyright infringement settlements. International Recorded Music artist services and expanded-rights revenue increased by $41 million, or 37%, driven by higher concert promotion revenue primarily in France and Spain, and the favorable impact of foreign currency exchange rates of $4 million. International Recorded Music digital revenue increased by $27 million, attributable to higher streaming revenue of $27 million, or 6%, which includes the impact of the BMG Termination, and reflects a favorable impact of foreign currency exchange rates of $9 million. Physical revenue increased by $3 million driven by the favorable impact of foreign currency exchange rates of $4 million, partially offset by the impact of the BMG Termination. International Music Publishing revenue increased by $6 million, or 4%, to $150 million for the three months ended June 30, 2025 from $144 million for the three months ended June 30, 2024. International Music Publishing revenue growth was driven by increases in performance revenue of $6 million due to growth from concerts, radio and live events in Europe and mechanical revenue of $3 million. This was partially offset by decreases in digital revenue of $1 million, synchronization revenue of $1 million, and other revenue of $1 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

***Cost of revenues***

Our cost of revenues was composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Artist and repertoire costs | $584 | $548 | $36 | 7% |
| Product costs | 329 | 282 | 47 | 17% |
| Total cost of revenues | $913 | $830 | $83 | 10% |

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Artist and repertoire costs increased by $36 million, to $584 million for the three months ended June 30, 2025 from $548 million for the three months ended June 30, 2024. Artist and repertoire costs as a percentage of revenue remained constant at 35% for each of the three months ended June 30, 2025 and June 30, 2024.

Product costs increased by $47 million, to $329 million for the three months ended June 30, 2025 from $282 million for the three months ended June 30, 2024. Product costs as a percentage of revenue increased to 19% for the three months ended June 30, 2025 from 18% for the three months ended June 30, 2024 due to revenue and deal mix.

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***Selling, general and administrative expenses***

Our selling, general and administrative expenses were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| General and administrative expense (1) | $282 | $264 | $18 | 7% |
| Selling and marketing expense | 167 | 173 | (6) | -3% |
| Distribution expense | 22 | 25 | (3) | -12% |
| Total selling, general and administrative expense | $471 | $462 | $9 | 2% |

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______________________________________

(1)Includes depreciation expense of $29 million and $25 million for the three months ended June 30, 2025 and June 30, 2024, respectively.

Total selling, general and administrative expense increased by $9 million, to $471 million for the three months ended June 30, 2025 from $462 million for the three months ended June 30, 2024. Expressed as a percentage of revenue, total selling, general and administrative expense decreased to 28% for the three months ended June 30, 2025 from 30% for the three months ended June 30, 2024 due to the factors noted below.

General and administrative expense increased by $18 million to $282 million for the three months ended June 30, 2025 from $264 million for the three months ended June 30, 2024. The increase in general and administrative expense was driven by incremental investment in technology of $7 million, higher non-cash stock-based compensation costs of $5 million due to the departure of our former Chief Financial Officer ("CFO") in the current year, the impact of acquisitions of $4 million and higher depreciation expense of $4 million, primarily driven by the core financials component of our new technology platform being placed into service, partially offset by savings from the 2024 Strategic Restructuring Plan, of which a portion has been reinvested in the Company's business. Expressed as a percentage of revenue, general and administrative expense remained constant at 17% for each of the three months ended June 30, 2025 and June 30, 2024.

Selling and marketing expense decreased by $6 million, or 3%, to $167 million for the three months ended June 30, 2025 from $173 million for the three months ended June 30, 2024. Expressed as a percentage of revenue, selling and marketing expense decreased to 10% for the three months ended June 30, 2025 from 11% for the three months ended June 30, 2024 due to savings from the 2024 Strategic Restructuring Plan, of which a portion has been reinvested in the Company's business.

Distribution expense decreased by $3 million to $22 million for the three months ended June 30, 2025 from $25 million for the three months ended June 30, 2024. Expressed as a percentage of revenue, distribution expense decreased to 1% for the three months ended June 30, 2025 from 2% for the three months ended June 30, 2024.

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***Reconciliation of Net Income Attributable to Warner Music Group Corp. and Operating Income to Consolidated Adjusted OIBDA***

As previously described, we use Adjusted OIBDA as our primary measure of financial performance. The following table reconciles operating income to Adjusted OIBDA, and further provides the components from net income attributable to Warner Music Group Corp. to operating income for purposes of the discussion that follows (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Net (loss) income attributable to Warner Music Group Corp. | $(16) | $139 | $(155) | —% |
| Income attributable to noncontrolling interest |  | 2 | (2) | (100)% |
| Net (loss) income | (16) | 141 | (157) | —% |
| Income tax expense | 5 | 30 | (25) | (83)% |
| Net (loss) income before income taxes | (11) | 171 | (182) | —% |
| Other expense (income) | 137 | (4) | 141 | —% |
| Interest expense, net | 43 | 40 | 3 | 8% |
| Operating income | 169 | 207 | (38) | (18)% |
| Amortization expense | 67 | 55 | 12 | 22% |
| Depreciation expense | 29 | 25 | 4 | 16% |
| Restructuring and impairments | 69 | 1 | 68 | —% |
| Transformation initiative costs | 19 | 18 | 1 | 6% |
| Executive transition costs | 4 |  | 4 | (100)% |
| Net gain on divestitures |  | (1) | 1 | —% |
| Non-cash stock-based compensation and other related costs | 16 | 11 | 5 | 45% |
| Adjusted OIBDA | $373 | $316 | $57 | 18% |

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*Adjusted OIBDA*

Adjusted OIBDA increased by $57 million to $373 million for the three months ended June 30, 2025 from $316 million for the three months ended June 30, 2024, driven by the impact of the Copyright Settlement of $9 million in Recorded Music in the current quarter and the $12 million impact of the DSP True-Up Payments in the prior-year quarter, as well as revenue mix, the impact of acquisitions, and savings from the 2024 Strategic Restructuring Plan, partially offset by the reinvestment of these savings in the Company's business including $7 million of incremental investment in technology for the three months ended June 30, 2025. Expressed as a percentage of total revenue, Adjusted OIBDA margin increased to 22% for the three months ended June 30, 2025 from 20% for the three months ended June 30, 2024.

*Non-cash stock-based compensation and other related costs*

Our non-cash stock-based compensation and other related costs increased by $5 million to $16 million for the three months ended June 30, 2025 from $11 million for the three months ended June 30, 2024, primarily due to $5 million of costs related to the departure of our former CFO in the current year.

*Net gain on divestitures*

There was no net gain on divestitures during the three months ended June 30, 2025. Net gain on divestitures during the three months ended June 30, 2024 includes a pre-tax gain of $1 million in connection with the divestiture of certain non-core owned and operated media properties.

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*Executive transition costs &nbsp;&nbsp;&nbsp;&nbsp;*Executive transition costs were $4 million during the three months ended June 30, 2025, which consisted of severance costs associated with the departure of our former CFO in the current year.

Transformation initiative costs

Our transformation initiative costs which include costs associated with our finance transformation increased by $1 million to $19 million for the three months ended June 30, 2025 from $18 million for the three months ended June 30, 2024.

*Restructuring and Impairments*

Our restructuring and impairment charges increased to $69 million for the three months ended June 30, 2025 from $1 million for the three months ended June 30, 2024. The three months ended June 30, 2025 includes an impairment charge of $70 million for long-lived assets associated with certain of the Company's non-core e-tailer operations.

*Depreciation expense*

Our depreciation expense increased by $4 million to $29 million for the three months ended June 30, 2025 from $25 million for the three months ended June 30, 2024. The increase is primarily driven by the core financials component of our new technology platform being placed into service.

*Amortization expense*

Our amortization expense increased by $12 million, to $67 million for the three months ended June 30, 2025 from $55 million for the three months ended June 30, 2024. The increase is driven by incremental amortization related to acquisitions of music-related assets, partially offset by certain intangible assets becoming fully amortized.

*Operating income*

Our operating income decreased by $38 million to $169 million for the three months ended June 30, 2025 from $207 million for the three months ended June 30, 2024. In addition to the factors impacting Adjusted OIBDA described above, the decrease in operating income was driven by an increase in restructuring and impairment charges of $68 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024, higher amortization expenses of $12 million, higher non-cash stock-based compensation and other related costs of $5 million, and the impact of a $1 million net gain on a divestiture in the prior-year quarter.

*Interest expense, net*

Our interest expense, net, increased to $43 million for the three months ended June 30, 2025 from $40 million for the three months ended June 30, 2024 due to incremental debt related to the Tempo Asset-Based Notes acquired in connection with the acquisition of Tempo.

*Other expense (income)*

Other expense for the three months ended June 30, 2025 primarily includes foreign currency losses on our Euro-denominated debt of $70 million, currency exchange losses on our intercompany loans of $63 million, and realized and unrealized losses on hedging activity of $8 million. This compares to foreign currency gains on our Euro-denominated debt of $7 million, currency exchange losses on our intercompany loans of $5 million, and realized and unrealized gains on hedging activity of $1 million for the three months ended June 30, 2024.

*Income tax expense*

Our income tax expense decreased by $25 million to $5 million for the three months ended June 30, 2025 from $30 million for the three months ended June 30, 2024. The decrease of $25 million in income tax expense is primarily due to the impact of pre-tax loss in the current period and benefit for updated allowable costs for reported foreign derived intangible income in the prior period.

*Net (loss) income*

Net (loss) income decreased by $157 million to net loss of $16 million for the three months ended June 30, 2025 from net income of $141 million for the three months ended June 30, 2024 as a result of the factors described above.

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*Noncontrolling interest*

There was no income attributable to noncontrolling interest during the three months ended June 30, 2025 compared to a loss of $2 million for the three months ended June 30, 2024.

**Business Segment Results**

Revenues, operating income (loss) and Adjusted OIBDA by business segment were as follows (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Recorded Music** |  |  |  |  |
| Revenues | $1354 | $1251 | $103 | 8% |
| Operating income | 201 | 230 | (29) | -13% |
| Adjusted OIBDA | 321 | 281 | 40 | 14% |
| **Music Publishing** |  |  |  |  |
| Revenues | 336 | 305 | 31 | 10% |
| Operating income | 60 | 53 | 7 | 13% |
| Adjusted OIBDA | 96 | 79 | 17 | 22% |
| **Corporate expenses and eliminations** |  |  |  |  |
| Revenue eliminations | (1) | (2) | 1 | -50% |
| Operating loss | (92) | (75) | (17) | 23% |
| Adjusted OIBDA loss | (44) | (44) |  | —% |
| **Total** |  |  |  |  |
| Revenues | 1689 | 1554 | 135 | 9% |
| Operating income | 169 | 207 | (38) | -18% |
| Adjusted OIBDA | 373 | 316 | 57 | 18% |

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***Recorded Music***

***Revenues***

Recorded Music revenue increased by $103 million, or 8%, to $1,354 million for the three months ended June 30, 2025 from $1,251 million for the three months ended June 30, 2024.

The overall increase in Recorded Music revenue was driven by higher revenue across digital, artist services and expanded-rights and licensing, partially offset by a decrease in physical revenue, as described in the "Total Revenues" and "Revenue by Geographical Location" sections above.

***Cost of revenues***

Recorded Music cost of revenues was composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Artist and repertoire costs | $377 | $354 | $23 | 6% |
| Product costs | 329 | 282 | 47 | 17% |
| Total cost of revenues | $706 | $636 | $70 | 11% |

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Recorded Music cost of revenues increased by $70 million, to $706 million for the three months ended June 30, 2025 from $636 million for the three months ended June 30, 2024. Expressed as a percentage of Recorded Music revenue, Recorded Music artist and repertoire costs remained constant at 28% for each of the three months ended June 30, 2025 and June 30, 2024. Expressed as a percentage of Recorded Music revenue, Recorded Music product costs increased to 24% for the three months ended June 30, 2025 from 23% for the three months ended June 30, 2024, driven by revenue and deal mix.

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***Selling, general and administrative expense***

Recorded Music selling, general and administrative expenses were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| General and administrative expense (1) | $162 | $161 | $1 | 1% |
| Selling and marketing expense | 161 | 167 | (6) | -4% |
| Distribution expense | 22 | 25 | (3) | -12% |
| Total selling, general and administrative expense | $345 | $353 | $(8) | -2% |

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______________________________________

(1)Includes depreciation expense of $14 million and $13 million for the three months ended June 30, 2025 and June 30, 2024, respectively.

Recorded Music selling, general and administrative expense decreased by $8 million, to $345 million for the three months ended June 30, 2025 from $353 million for the three months ended June 30, 2024. The increase in general and administrative expense was largely driven by the impact of acquisitions of $4 million, partially offset by lower non-cash stock-based compensation and other related costs of $2 million. The decrease in selling and marketing expense was driven by savings from the 2024 Strategic Restructuring Plan, a portion of which has been reinvested into the Company's business. The decrease in distribution expense was primarily driven by revenue mix. Expressed as a percentage of Recorded Music revenue, Recorded Music selling, general and administrative expense decreased to 25% for the three months ended June 30, 2025 from 28% for the three months ended June 30, 2024.

***Operating Income and Adjusted OIBDA***

Recorded Music operating income decreased by $29 million to $201 million for the three months ended June 30, 2025 from $230 million for the three months ended June 30, 2024. In addition to the factors impacting Adjusted OIBDA described below, the decrease in operating income was driven by an increase in restructuring and impairment charges of $67 million compared to the prior-year quarter, which includes an impairment charge of $70 million for long-lived assets associated with certain of the Company's non-core e-tailer operations, and higher amortization expenses of $3 million related to acquisitions of music-related assets.

Recorded Music Adjusted OIBDA increased by $40 million to $321 million for the three months ended June 30, 2025 from $281 million for the three months ended June 30, 2024, largely driven by the impact of the Copyright Settlement of $9 million in the current quarter and the $12 million impact of the DSP True-Up Payments in the prior-year quarter, as well as savings from the 2024 Strategic Restructuring Plan, of which a portion has been reinvested in the Company's business, and favorable movements in foreign currency exchange rates. Expressed as a percentage of Recorded Music revenue, Recorded Music Adjusted OIBDA margin increased to 24% for the three months ended June 30, 2025 from 22% for the three months ended June 30, 2024 due to the factors noted above.

***Music Publishing***

***Revenues***

Music Publishing revenues increased by $31 million, or 10%, to $336 million for the three months ended June 30, 2025 from $305 million for the three months ended June 30, 2024.

The overall increase in Music Publishing revenue was driven by growth in digital, performance, synchronization and mechanical revenues, as described in the "Total Revenues" and "Revenue by Geographical Location" sections above.

***Cost of revenues***

Music Publishing cost of revenues were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Artist and repertoire costs | $208 | $196 | $12 | 6% |
| Total cost of revenues | $208 | $196 | $12 | 6% |

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Music Publishing cost of revenues increased by $12 million, or 6%, to $208 million for the three months ended June 30, 2025 from $196 million for the three months ended June 30, 2024. Expressed as a percentage of Music Publishing revenue, Music

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Publishing cost of revenues decreased to 62% for the three months ended June 30, 2025 from 64% for the three months ended June 30, 2024, largely due to revenue mix.

***Selling, general and administrative expense***

Music Publishing selling, general and administrative expenses were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Three Months Ended<br>June 30,** | **For the Three Months Ended<br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| General and administrative expense (1) | $33 | $30 | $3 | 10% |
| Selling and marketing expense | 1 | 1 |  | —% |
| Total selling, general and administrative expense | $34 | $31 | $3 | 10% |

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______________________________________

(1)Includes depreciation expense of $1 million for the three months ended June 30, 2025. There was no depreciation expense for the three months ended June 30, 2024.

Music Publishing selling, general and administrative expense increased by $3 million, or 10%, to $34 million for the three months ended June 30, 2025 from $31 million for the three months ended June 30, 2024, driven by higher overhead and the impact of acquisitions. Expressed as a percentage of Music Publishing revenue, Music Publishing selling, general and administrative expense remained constant at 10% for the three months ended June 30, 2025 and June 30, 2024.

***Operating Income and Adjusted OIBDA***

Music Publishing operating income increased by $7 million to $60 million for the three months ended June 30, 2025 from $53 million for the three months ended June 30, 2024, driven by the same factors affecting Adjusted OIBDA discussed below, partially offset by an increase in depreciation and amortization expense of $10 million for the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Music Publishing Adjusted OIBDA increased by $17 million, or 22%, to $96 million for the three months ended June 30, 2025 from $79 million for the three months ended June 30, 2024, primarily driven by revenue mix. Expressed as a percentage of Music Publishing revenue, Music Publishing Adjusted OIBDA margin increased to 29% for the three months ended June 30, 2025 from 26% for the three months ended June 30, 2024.

***Corporate Expenses and Eliminations***

Our operating loss from corporate expenses and eliminations increased by $17 million for the three months ended June 30, 2025 to $92 million from $75 million for the three months ended June 30, 2024, driven by incremental investment in technology and higher depreciation expense of $2 million driven by the core financials component of our new technology platform being placed into service.

Our Adjusted OIBDA loss from corporate expenses and eliminations remained constant at $44 million for each of the three months ended June 30, 2025 and June 30, 2024, primarily due to the operating loss factors noted above.

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**RESULTS OF OPERATIONS**

**Nine Months Ended June 30, 2025 Compared with Nine Months Ended June 30, 2024**

***Consolidated Results***

***Revenues***

Our revenues were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Revenue by Type** |  |  |  |  |
| Digital | $2643 | $2638 | $5 | —% |
| Physical | 397 | 385 | 12 | 3% |
| Total digital and physical | 3040 | 3023 | 17 | 1% |
| Artist services and expanded-rights | 508 | 489 | 19 | 4% |
| Licensing | 326 | 373 | (47) | -13% |
| Total Recorded Music | 3874 | 3885 | (11) | —% |
| Performance | 167 | 155 | 12 | 8% |
| Digital | 599 | 577 | 22 | 4% |
| Mechanical | 46 | 43 | 3 | 7% |
| Synchronization | 142 | 129 | 13 | 10% |
| Other | 15 | 11 | 4 | 36% |
| Total Music Publishing | 969 | 915 | 54 | 6% |
| Intersegment eliminations | (4) | (4) |  | —% |
| Total revenues | $4839 | $4796 | $43 | 1% |
| **Revenue by Geographical Location** |  |  |  |  |
| U.S. Recorded Music | $1565 | $1652 | $(87) | -5% |
| U.S. Music Publishing | 520 | 503 | 17 | 3% |
| Total U.S. | 2085 | 2155 | (70) | -3% |
| International Recorded Music | 2309 | 2233 | 76 | 3% |
| International Music Publishing | 449 | 412 | 37 | 9% |
| Total international | 2758 | 2645 | 113 | 4% |
| Intersegment eliminations | (4) | (4) |  | —% |
| Total revenues | $4839 | $4796 | $43 | 1% |

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***Total Revenues***

Total revenues increased by $43 million, or 1%, to $4,839 million for the nine months ended June 30, 2025 from $4,796 million for the nine months ended June 30, 2024. Revenue growth was favorably impacted by $16 million of higher Recorded Music digital revenue from the Copyright Settlement and $4 million of higher Recorded Music digital revenue from the DSP True-Up Payments. The prior year included $75 million in Recorded Music licensing revenue from a licensing agreement extension for an artist's catalog (the "Licensing Extension"), $43 million of incremental Recorded Music streaming revenue recognized from the DSP True-Up Payments, and $30 million of Recorded Music streaming revenue from a deal with one of the Company's digital partners (the "Digital License Renewal"), which resulted in upfront revenue recognition for the nine months ended June 30, 2024. Revenue growth was also unfavorably impacted by the BMG Termination, which resulted in $64 million lower Recorded Music revenue compared to the nine months ended June 30, 2024, of which $24 million was in streaming revenue and $40 million was in physical revenue. Prior to intersegment eliminations, Recorded Music and Music Publishing revenues represented 80% and 20% of total revenues for the nine months ended June 30, 2025, respectively, and 81% and 19% of total revenues for the nine months ended June 30, 2024, respectively. Prior to intersegment eliminations, U.S. and international revenues represented 43% and 57% for the nine months ended June 30, 2025, respectively, and 45% and 55% for the nine months ended June 30, 2024, respectively.

Total digital revenues after intersegment eliminations increased by $27 million, or 1%, to $3,241 million for the nine months ended June 30, 2025 from $3,214 million for the nine months ended June 30, 2024. Total streaming revenue increased 1% primarily driven by an increase in streaming revenue at Music Publishing. Total digital revenues remained constant at 67% of consolidated revenues for each of the nine months ended June 30, 2025 and June 30, 2024. Prior to intersegment eliminations, total digital revenues

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for the nine months ended June 30, 2025 were composed of U.S. revenues of $1,533 million and international revenues of $1,709 million, or 47% and 53% of total digital revenues, respectively. Prior to intersegment eliminations, total digital revenues for the nine months ended June 30, 2024 were composed of U.S. revenues of $1,551 million and international revenues of $1,664 million, or 48% and 52% of total digital revenues, respectively.

Recorded Music revenues decreased by $11 million to $3,874 million for the nine months ended June 30, 2025 compared to $3,885 million for the nine months ended June 30, 2024, which includes $17 million of unfavorable currency exchange fluctuations. U.S. Recorded Music revenues were $1,565 million and $1,652 million, or 40% and 43% of consolidated Recorded Music revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively. International Recorded Music revenues were $2,309 million and $2,233 million, or 60% and 57% of consolidated Recorded Music revenues for the nine months ended June 30, 2025 and June 30, 2024, respectively.

The overall decrease in Recorded Music revenue was driven by a decrease in licensing offset by increases in artist services and expanded-rights and physical revenues. Digital revenue increased by $5 million for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024, which includes an unfavorable impact of currency exchange fluctuations of $20 million, and reflects the impacts of the Copyright Settlement of $16 million and DSP True-Up Payments of $4 million in the current year and $43 million in the prior year, as well as the Digital License Renewal of $30 million and the BMG Termination of $24 million in the prior year. Revenue from streaming services decreased $4 million to $2,574 million for the nine months ended June 30, 2025 compared to $2,578 million for the nine months ended June 30, 2024, which includes the unfavorable impact of foreign currency exchange rates of $20 million, and reflects the impacts of the DSP True-Up Payments of $4 million in the current year and $43 million in the prior year, as well as the Digital License Renewal of $30 million and the BMG Termination of $24 million in the prior year. Download and other digital revenues increased by $9 million, or 15%, to $69 million for the nine months ended June 30, 2025 from $60 million for the nine months ended June 30, 2024 primarily due to the impact of the Copyright Settlement of $16 million, partially offset by the continued shift to streaming services. Licensing revenue decreased by $47 million, or 13%, primarily driven by $75 million from the Licensing Extension in the prior year. Artist services and expanded-rights revenue increased by $19 million, or 4%, attributable to higher concert promotion revenue in Europe. Physical revenue increased by $12 million, or 3%, driven by strong U.S. and international releases, including in Japan and Korea, and includes a favorable impact of foreign currency exchange rates of $2 million, partially offset by the unfavorable impact of the BMG Termination of $40 million. Top sellers for the nine months ended June 30, 2025 included ROSÉ, Bruno Mars, Teddy Swims, Linkin Park, Charli XCX, and Benson Boone.

Music Publishing revenues increased by $54 million, or 6%, to $969 million for the nine months ended June 30, 2025 from $915 million for the nine months ended June 30, 2024. U.S. Music Publishing revenues were $520 million and $503 million, or 54% and 55% of consolidated Music Publishing revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively. International Music Publishing revenues were $449 million and $412 million, or 46% and 45% of Music Publishing revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively.

The overall increase in Music Publishing revenue was attributable to increases in digital revenue of $22 million, or 4%, performance revenue of $12 million, or 8%, synchronization revenue of $13 million, or 8%, mechanical revenue of $3 million, or 7%, and other publishing revenue of $4 million. The increase in digital revenue was primarily driven by continued growth in streaming revenue. Revenue from streaming services grew by $22 million, or 4%, to $592 million for the nine months ended June 30, 2025 from $570 million for the nine months ended June 30, 2024, reflecting the impact of deal renewals, primarily in the U.S., partially offset by an unfavorable impact of foreign currency exchange rates of $2 million. The growth in performance revenue is attributable to growth from concerts, radio and live events in Europe, and the growth in synchronization revenue is attributable to the timing of other copyright infringement settlements, higher television and commercial licensing activity, and the $5 million impact of our acquisition of Tempo.

***Revenue by Geographical Location***

U.S. revenue decreased by $70 million, or 3%, to $2,085 million for the nine months ended June 30, 2025 from $2,155 million for the nine months ended June 30, 2024. U.S. Recorded Music revenue decreased by $87 million, or 5%, primarily driven by a decrease in licensing revenue of $67 million largely attributable to $75 million from the Licensing Extension in the prior year. The decrease in U.S. Recorded Music revenue was also attributable to lower digital and expanded-rights revenues, partially offset by growth in U.S. Recorded Music physical revenue. U.S. Recorded Music digital revenue decreased by $20 million, or 2%, which reflects lower streaming revenue of $33 million, or 3%, partially offset by higher download and other digital revenue of $13 million, or 42%. The decrease in streaming revenue is largely attributable to the impacts of the DSP True-Up Payments in both the current and prior years, as well as the BMG Termination in the prior year. The increase in download and other digital revenue is due to the impact of the Copyright Settlement of $16 million in the current year. U.S Recorded Music physical revenue increased by $4 million, or 2%, driven by strong releases in the current year as well as catalog and carryover success, partially offset by the impact of the BMG Termination. U.S. Recorded Music artist services and expanded-rights revenue decreased by $4 million, or 3%, driven by a decrease in revenue related to the exit of the Company's non-core owned and operated media properties in the prior year in connection with the

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2024 Strategic Restructuring Plan, partially offset by the impact of acquisitions. U.S. Music Publishing revenue increased by $17 million, or 3%, to $520 million for the nine months ended June 30, 2025 from $503 million for the nine months ended June 30, 2024. U.S. Music Publishing digital revenue increased by $2 million, attributable to higher streaming revenue of $2 million, or 1%, while download and other digital revenue remained constant. U.S. Music Publishing mechanical revenue increased by $2 million, or 25%. U.S. Music Publishing synchronization revenue increased by $13 million, or 17%, driven by timing of other copyright infringement settlements, higher television and commercial licensing activity and the impact of acquisitions. U.S. Music Publishing performance revenue remained constant for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024.

International revenue increased by $113 million, or 4%, to $2,758 million for the nine months ended June 30, 2025 from $2,645 million for the nine months ended June 30, 2024. Excluding the unfavorable impact of foreign currency exchange rates of $22 million, International revenue increased by $135 million, or 5%. International Recorded Music revenue increased by $76 million, driven by increases in digital revenue of $25 million, artist services and expanded-rights revenue of $23 million, licensing revenue of $20 million and physical revenue of $8 million. International Recorded Music digital revenue increased by $25 million, attributable to higher streaming revenue of $29 million which includes the impact of certain DSP True-Up Payments, the Digital License Renewal and the BMG Termination in the prior year, and a favorable impact of foreign currency exchange rates of $20 million, partially offset by lower download and other digital revenue of $4 million. International Recorded Music artist services and expanded-rights revenue increased by $23 million, primarily due to higher concert promotion revenue. International Recorded Music licensing revenue increased by $20 million, driven by higher licensing activity primarily in the U.K. and Japan, the timing of other copyright infringement settlements, and favorable foreign currency exchange rates of $1 million. International Recorded Music physical revenue increased by $8 million, driven by strength of new releases primarily in Japan, and a favorable impact of foreign currency exchange rates of $2 million, partially offset by the unfavorable impact of the BMG Termination in the prior year. International Music Publishing revenue increased by $37 million, or 9%, to $449 million for the nine months ended June 30, 2025 from $412 million for the nine months ended June 30, 2024. This was driven by increases in digital revenue of $20 million, performance revenue of $12 million driven by higher touring revenue, mechanical revenue of $1 million, and other publishing revenue of $4 million. Synchronization revenue remained constant for the nine months ended June 30, 2025 compared to the nine months ended June 30, 2024. International Music Publishing digital growth is primarily driven by streaming revenue growth of $20 million, or 9%.

***Cost of revenues***

Our cost of revenues was composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Artist and repertoire costs | $1689 | $1627 | $62 | 4% |
| Product costs | 909 | 874 | 35 | 4% |
| Total cost of revenues | $2598 | $2501 | $97 | 4% |

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Artist and repertoire costs increased by $62 million, to $1,689 million for the nine months ended June 30, 2025 from $1,627 million for the nine months ended June 30, 2024. Artist and repertoire costs as a percentage of revenue increased to 35% for the nine months ended June 30, 2025 from 34% for the nine months ended June 30, 2024, primarily due to revenue mix compared to the nine months ended June 30, 2024, which included items with upfront revenue recognition without associated artist and repertoire costs, partially offset by favorable movements in currency exchange rates.

Product costs increased by $35 million, to $909 million for the nine months ended June 30, 2025 from $874 million for the nine months ended June 30, 2024. Product costs as a percentage of revenue increased to 19% for the nine months ended June 30, 2025 from 18% for the nine months ended June 30, 2024, primarily due to the impact of the Licensing Extension, revenue mix and the BMG Termination.

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***Selling, general and administrative expenses***

Our selling, general and administrative expenses were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| General and administrative expense (1) | $842 | $791 | $51 | 6% |
| Selling and marketing expense | 482 | 518 | (36) | -7% |
| Distribution expense | 71 | 75 | (4) | -5% |
| Total selling, general and administrative expense | $1395 | $1384 | $11 | 1% |

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______________________________________

(1)Includes depreciation expense of $86 million and $77 million for the nine months ended June 30, 2025 and June 30, 2024, respectively.

Total selling, general and administrative expense increased by $11 million, to $1,395 million for the nine months ended June 30, 2025 from $1,384 million for the nine months ended June 30, 2024. Expressed as a percentage of revenue, total selling, general and administrative expense remained constant at 29% for each of the nine months ended June 30, 2025 and June 30, 2024 due to the factors noted below.

General and administrative expense increased by $51 million to $842 million for the nine months ended June 30, 2025 from $791 million for the nine months ended June 30, 2024. The increase in general and administrative expense was driven by incremental investment in technology of $20 million, higher non-cash stock-based compensation expense of $14 million, the impact of acquisitions of $7 million, and higher depreciation expense of $9 million related to technology assets being placed into service, including the core financials component of our new technology platform, partially offset by lower expenses related to transformation initiatives and related costs of $2 million, and savings from the 2024 Strategic Restructuring Plan, of which a portion has been reinvested into the Company's business. Expressed as a percentage of revenue, general and administrative expense increased to 17% for the nine months ended June 30, 2025 from 16% for the nine months ended June 30, 2024 due to the factors noted above.

Selling and marketing expense decreased by $36 million, or 7%, to $482 million for the nine months ended June 30, 2025 from $518 million for the nine months ended June 30, 2024. Expressed as a percentage of revenue, selling and marketing expense decreased to 10% for the nine months ended June 30, 2025, from 11% for the nine months ended June 30, 2024 due to lower variable marketing spend and savings from the 2024 Strategic Restructuring Plan, of which a portion has been reinvested in the Company's business.

Distribution expense decreased by $4 million to $71 million for the nine months ended June 30, 2025 from $75 million for the nine months ended June 30, 2024. Expressed as a percentage of revenue, distribution expense decreased to 1% for the nine months ended June 30, 2025 from 2% for the nine months ended June 30, 2024.

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***Reconciliation of Net Income Attributable to Warner Music Group Corp. and Operating Income to Consolidated Adjusted OIBDA***

As previously described, we use Adjusted OIBDA as our primary measure of financial performance. The following table reconciles operating income to Adjusted OIBDA, and further provides the components from net income attributable to Warner Music Group Corp. to operating income for purposes of the discussion that follows (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Net income attributable to Warner Music Group Corp. | $256 | $394 | $(138) | -35% |
| Income attributable to noncontrolling interest | 5 | 36 | (31) | -86% |
| Net income | 261 | 430 | (169) | -39% |
| Income tax expense | 123 | 120 | 3 | 3% |
| Income before income taxes | 384 | 550 | (166) | -30% |
| Other expense | 48 | 9 | 39 | —% |
| Interest expense, net | 119 | 121 | (2) | -2% |
| Operating income | 551 | 680 | (129) | -19% |
| Amortization expense | 186 | 167 | 19 | 11% |
| Depreciation expense | 86 | 77 | 9 | 12% |
| Restructuring and impairments | 109 | 96 | 13 | 14% |
| Transformation initiatives and other related costs | 54 | 56 | (2) | -4% |
| Executive transition costs | 4 |  | 4 | —% |
| Net gain on divestitures |  | (32) | 32 | -100% |
| Non-cash stock-based compensation and other related costs | 49 | 35 | 14 | 40% |
| Adjusted OIBDA | $1039 | $1079 | $(40) | -4% |

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*Adjusted OIBDA*

Adjusted OIBDA decreased by $40 million to $1,039 million for the nine months ended June 30, 2025 as compared to $1,079 million for the nine months ended June 30, 2024, largely attributable to the impact of the Copyright Settlement of $9 million in Recorded Music and the $3 million impact of the DSP True-Up Payments in the current year, and the $74 million impact of the Licensing Extension, the $23 million impact of the DSP True-Up Payments, the $12 million impact of the Digital License Renewal, and the $1 million impact of the BMG Termination in the prior year, as well as revenue mix, partially offset by savings from the 2024 Strategic Restructuring Plan, a portion of which has been reinvested in the Company's business, and favorable movements in currency exchange rates. Expressed as a percentage of total revenue, Adjusted OIBDA margin decreased to 21% for the nine months ended June 30, 2025 from 23% for the nine months ended June 30, 2024.

*Non-cash stock-based compensation and other related costs*

Our non-cash stock-based compensation and other related costs increased by $14 million to $49 million for the nine months ended June 30, 2025 from $35 million for the nine months ended June 30, 2024, primarily related to issuance of additional restricted stock units and market-based performance stock units and the departure of our former CFO in the current year of $5 million.

*Net gain on divestitures*

There was no net gain on divestitures during the nine months ended June 30, 2025. During the nine months ended June 30, 2024, the Company recognized a pre-tax gain of $32 million in connection with the divestiture of certain sound recording and publishing rights.

*Executive transition costs &nbsp;&nbsp;&nbsp;&nbsp;*Executive transition costs were $4 million during the nine months ended June 30, 2025, which consisted of severance costs associated with the departure of our former CFO in the current year.

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*Transformation initiatives and other related costs*

Our transformation initiatives and other related costs decreased by $2 million to $54 million for the nine months ended June 30, 2025 from $56 million for the nine months ended June 30, 2024.

*Restructuring and Impairments* 

Our restructuring and impairment charges increased by $13 million to $109 million for the nine months ended June 30, 2025 from $96 million for the nine months ended June 30, 2024. The current year includes contract termination costs of approximately $7 million, and approximately $32 million of impairment losses related to the 2024 Strategic Restructuring Plan as well as an impairment charge of $70 million for long-lived assets associated with certain of the Company's non-core e-tailer operations. Impairment charges recognized in connection with the 2024 Strategic Restructuring Plan during the current year primarily relate to the write-off of certain long-form audiovisual production assets and lease termination costs for office closures. The nine months ended June 30, 2024 also includes severance costs of approximately $46 million, and $50 million of impairment losses primarily related to the 2024 Strategic Restructuring Plan.

*Depreciation expense*

Our depreciation expense increased by $9 million to $86 million for the nine months ended June 30, 2025 from $77 million for the nine months ended June 30, 2024. This increase is primarily due to an increase in IT assets being placed into service, including the core financials component of our new technology platform.

*Amortization expense*

Our amortization expense increased by $19 million, or 11%, to $186 million for the nine months ended June 30, 2025 from $167 million for the nine months ended June 30, 2024. The increase is driven by incremental amortization related to acquisitions of music-related assets, partially offset by certain intangible assets becoming fully amortized.

*Operating income*

Our operating income decreased by $129 million to $551 million for the nine months ended June 30, 2025 from $680 million for the nine months ended June 30, 2024. The decrease in operating income was due to the same factors affecting Adjusted OIBDA discussed above, as well as higher depreciation expenses primarily due to an increase in technology assets being placed into service, including the core financials component of our new technology platform, a $32 million net gain on divestitures in the prior year and higher restructuring and impairment charges as noted above.

*Interest expense, net*

Our interest expense, net, decreased to $119 million for the nine months ended June 30, 2025 from $121 million for the nine months ended June 30, 2024 due to lower interest rates on variable rate debt, partially offset by the impact of the Tempo Asset-Based Notes.

*Other expense*

Other expense for the nine months ended June 30, 2025 primarily includes foreign currency losses on our Euro-denominated debt of $43 million, currency exchange gains on our intercompany loans of $43 million, realized gains on the sale of an investment of $29 million, and realized and unrealized gains on hedging activity of $1 million. This compares to foreign currency losses on our Euro-denominated debt of $19 million and currency exchange losses on the Company's intercompany loans of $2 million for the nine months ended June 30, 2024.

*Income tax expense*

Our income tax expense increased by $3 million to $123 million for the nine months ended June 30, 2025 from $120 million for the nine months ended June 30, 2024. The increase of $3 million in income tax expense is primarily due to benefits in the prior year from the winding down of the Company's owned and operated media properties, updated allowable costs for reported foreign derived intangible income, and no tax on non-controlling interest were partially offset by lower pre-tax income in the current year.

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*Net income*

Net income decreased by $169 million to $261 million for the nine months ended June 30, 2025 from $430 million for the nine months ended June 30, 2024 as a result of the factors described above.

*Noncontrolling interest*

Income attributable to noncontrolling interest decreased by $31 million to $5 million for the nine months ended June 30, 2025 from $36 million for the nine months ended June 30, 2024, driven by lower income from non-wholly-owned subsidiaries in the current year, primarily due to the impact of the Licensing Extension in the prior year.

**Business Segment Results**

Revenues, operating income (loss) and Adjusted OIBDA by business segment were as follows (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| **Recorded Music** |  |  |  |  |
| Revenues | $3874 | $3885 | $(11) | —% |
| Operating income | 642 | 739 | (97) | -13% |
| Adjusted OIBDA | 914 | 965 | (51) | -5% |
| **Music Publishing** |  |  |  |  |
| Revenues | $969 | $915 | $54 | 6% |
| Operating income | 167 | 185 | (18) | -10% |
| Adjusted OIBDA | 264 | 247 | 17 | 7% |
| **Corporate expenses and eliminations** |  |  |  |  |
| Revenue eliminations | $(4) | $(4) | $— | —% |
| Operating loss | (258) | (244) | (14) | 6% |
| Adjusted OIBDA loss | (139) | (133) | (6) | 5% |
| **Total** |  |  |  |  |
| Revenues | $4839 | $4796 | $43 | 1% |
| Operating income | 551 | 680 | (129) | -19% |
| Adjusted OIBDA | 1039 | 1079 | (40) | -4% |

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***Recorded Music***

***Revenues***

Recorded Music revenues decreased by $11 million to $3,874 million for the nine months ended June 30, 2025 compared to $3,885 million for the nine months ended June 30, 2024, U.S. Recorded Music revenues were $1,565 million and $1,652 million, or 40% and 43% of consolidated Recorded Music revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively. International Recorded Music revenues were $2,309 million and $2,233 million, or 60% and 57% of consolidated Recorded Music revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively.

The overall decrease in Recorded Music revenue was driven by a decrease in licensing revenue, offset by increases in artist services and expanded-rights and physical revenues, as described in the "Total Revenues" and "Revenue by Geographical Location" sections above.

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***Cost of revenues***

Recorded Music cost of revenues was composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Artist and repertoire costs | $1082 | $1050 | $32 | 3% |
| Product costs | 909 | 874 | 35 | 4% |
| Total cost of revenues | $1991 | $1924 | $67 | 3% |

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Recorded Music cost of revenues increased by $67 million, to $1,991 million for the nine months ended June 30, 2025 from $1,924 million for the nine months ended June 30, 2024. Expressed as a percentage of Recorded Music revenue, Recorded Music artist and repertoire costs increased to 28% for the nine months ended June 30, 2025, from 27% for the nine months ended June 30, 2024 primarily driven by revenue mix compared to the nine months ended June 30, 2024, which included items with upfront revenue recognition without associated artist and repertoire costs, partially offset by favorable movements in currency exchange rates. Expressed as a percentage of Recorded Music revenue, Recorded Music product costs increased to 23% for the nine months ended June 30, 2025 from 22% for the nine months ended June 30, 2024, primarily due to revenue and deal mix and the impact of the Licensing Extension in the prior year, partially offset by a favorable impact of foreign currency exchange rates in the current year.

***Selling, general and administrative expense***

Recorded Music selling, general and administrative expenses were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| General and administrative expense (1) | $503 | $479 | $24 | 5% |
| Selling and marketing expense | 461 | 500 | (39) | -8% |
| Distribution expense | 71 | 75 | (4) | -5% |
| Total selling, general and administrative expense | $1035 | $1054 | $(19) | -2% |

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(1)Includes depreciation expense of $42 million and $39 million for the nine months ended June 30, 2025 and June 30, 2024, respectively.

Recorded Music selling, general and administrative expense decreased by $19 million, to $1,035 million for the nine months ended June 30, 2025 from $1,054 million for the nine months ended June 30, 2024. The increase in general and administrative expense was primarily due to higher non-cash stock-based compensation and other related expenses of $5 million, partially offset by the impact of acquisitions of $7 million and savings from the 2024 Strategic Restructuring Plan, a portion of which has been reinvested into the Company's business. The decrease in selling and marketing expense was primarily due to lower variable marketing spend and savings from the 2024 Strategic Restructuring Plan. The decrease in distribution expense was primarily due to revenue mix. Expressed as a percentage of Recorded Music revenue, Recorded Music selling, general and administrative expense remained constant at 27% for each of the nine months ended June 30, 2025 and June 30, 2024.

***Operating Income and Adjusted OIBDA***

Recorded Music operating income decreased by $97 million to $642 million for the nine months ended June 30, 2025 from $739 million for the nine months ended June 30, 2024. In addition to the factors impacting Recorded Music Adjusted OIBDA noted below, the decrease in operating income was driven by a $17 million net gain on divestitures recognized in the prior year, $110 million of restructuring and non-cash impairment charges compared to $89 million recognized in the prior year, primarily related to an impairment charge of $70 million recognized in the current period for long-lived assets associated with certain of the Company's non-core e-tailer operations offset with lower non-cash impairment charges recognized in connection with the 2024 Strategic Restructuring plan, higher non-cash stock-based compensation expense and other related costs of $5 million and higher depreciation expense of $3 million primarily due to an increase in IT assets being placed into service, including the core financials component of our new technology platform.

Recorded Music Adjusted OIBDA decreased by $51 million, to $914 million for the nine months ended June 30, 2025 from $965 million for the nine months ended June 30, 2024, largely attributable to the impact of the Copyright Settlement of $9 million and the $3 million impact of the DSP True-Up Payments in the current year, as well as the Licensing Extension of $74 million, the $23 million impact of the DSP True-up Payments, the Digital License Renewal of $12 million, and the $1 million impact of the BMG

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Termination in the prior year, partially offset by the impact of favorable movements in foreign currency exchange rates and savings from the 2024 Strategic Restructuring Plan, of which a portion has been reinvested in the Company's business. Expressed as a percentage of Recorded Music revenue, Recorded Music Adjusted OIBDA margin decreased to 24% for the nine months ended June 30, 2025 from 25% for the nine months ended June 30, 2024, due to the factors noted above.

***Music Publishing***

***Revenues***

Music Publishing revenues increased by $54 million, or 6%, to $969 million for the nine months ended June 30, 2025 from $915 million for the nine months ended June 30, 2024. U.S. Music Publishing revenues were $520 million and $503 million, or 54% and 55% of consolidated Music Publishing revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively. International Music Publishing revenues were $449 million and $412 million, or 46% and 45% of consolidated Music Publishing revenues, for the nine months ended June 30, 2025 and June 30, 2024, respectively.

The overall increase in Music Publishing revenue was driven by growth across digital, performance, synchronization, mechanical and other publishing revenues, as described in the "Total Revenues" and "Revenue by Geographical Location" sections above.

***Cost of revenues***

Music Publishing cost of revenues were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| Artist and repertoire costs | $612 | $582 | $30 | 5% |
| Total cost of revenues | $612 | $582 | $30 | 5% |

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Music Publishing cost of revenues increased by $30 million, or 5%, to $612 million for the nine months ended June 30, 2025 from $582 million for the nine months ended June 30, 2024. Expressed as a percentage of Music Publishing revenue, Music Publishing cost of revenues decreased to 63% for the nine months ended June 30, 2025 from 64% for the nine months ended June 30, 2024.

***Selling, general and administrative expense***

Music Publishing selling, general and administrative expenses were composed of the following amounts (in millions):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Nine Months Ended <br>June 30,** | **For the Nine Months Ended <br>June 30,** | ***2025 vs. 2024*** | ***2025 vs. 2024*** |
|  | **2025** | **2024** | **$ Change** | **% Change** |
| General and administrative expense (1) | $98 | $90 | $8 | 9% |
| Selling and marketing expense | 3 | 1 | 2 | —% |
| Total selling, general and administrative expense | $101 | $91 | $10 | 11% |

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______________________________________

(1)Includes depreciation expense of $4 million and $2 million for the nine months ended June 30, 2025 and June 30, 2024, respectively.

Music Publishing selling, general and administrative expense increased to $101 million for the nine months ended June 30, 2025 from $91 million for the nine months ended June 30, 2024. Expressed as a percentage of Music Publishing revenue, Music Publishing selling, general and administrative expense remained constant at 10% for the nine months ended June 30, 2025 and June 30, 2024.

***Operating Income and Adjusted OIBDA***

Music Publishing operating income decreased by $18 million to $167 million for the nine months ended June 30, 2025 from $185 million operating income for the nine months ended June 30, 2024 largely due to the factors that impacted Music Publishing Adjusted OIBDA noted below, as well as a $14 million net gain on a divestiture recognized in the prior year.

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Music Publishing Adjusted OIBDA increased by $17 million to $264 million for the nine months ended June 30, 2025 from $247 million for the nine months ended June 30, 2024. Expressed as a percentage of Music Publishing revenue, Music Publishing Adjusted OIBDA margin remained constant at 27% for the nine months ended June 30, 2025 and June 30, 2024, primarily driven by revenue mix and the impact of acquisitions.

***Corporate Expenses and Eliminations***

Our operating loss from corporate expenses and eliminations increased by $14 million to $258 million for the nine months ended June 30, 2025 from $244 million for the nine months ended June 30, 2024, primarily due to incremental investment in technology of $20 million compared to the prior year, higher non-cash stock-based compensation and other related expenses of $8 million, executive transition costs of $4 million and higher depreciation expense of $4 million, partially offset by lower expenses related to transformation initiatives and related costs of $2 million and lower restructuring and impairment charges associated with the 2024 Strategic Restructuring Plan.

Our Adjusted OIBDA loss from corporate expenses and eliminations increased by $6 million to $139 million for the nine months ended June 30, 2025 from $133 million for the nine months ended June 30, 2024 primarily due to the operating loss factors noted above.

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**FINANCIAL CONDITION AND LIQUIDITY**

**Financial Condition at June 30, 2025**

At June 30, 2025, we had $4.363 billion of debt (which is net of $38 million of premiums, discounts and deferred financing costs), $527 million of cash and equivalents (net debt of $3.836 billion, defined as total debt, less cash and equivalents and premiums, discounts and deferred financing costs) and $589 million of Warner Music Group Corp. equity. This compares to $4.014 billion of debt (which is net of $34 million of premiums, discounts and deferred financing costs), $694 million of cash and equivalents (net debt of $3.320 billion) and $518 million of Warner Music Group Corp. equity at September 30, 2024.

**Cash Flows**

The following table summarizes our historical cash flows (in millions). The financial data for the nine months ended June 30, 2025 and June 30, 2024 are unaudited and have been derived from our condensed consolidated interim financial statements included elsewhere herein.

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| | | |
|:---|:---|:---|
| | **Nine Months Ended <br>June 30,** | **Nine Months Ended <br>June 30,** |
| | **2025** | **2024** |
| Cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating activities | $447 | $450 |
| &nbsp;&nbsp;&nbsp;&nbsp;Investing activities | (273) | (201) |
| &nbsp;&nbsp;&nbsp;&nbsp;Financing activities | (344) | (280) |

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***Operating Activities***

Cash provided by operating activities was $447 million for the nine months ended June 30, 2025 as compared with cash provided by operating activities of $450 million for the nine months ended June 30, 2024. The $3 million decrease in cash provided by operating activities was largely a result of movement within working capital.

***Investing Activities***

Cash used in investing activities was $273 million for the nine months ended June 30, 2025 as compared with cash used in investing activities of $201 million for the nine months ended June 30, 2024. The $273 million of cash used in investing activities in the nine months ended June 30, 2025 consisted of $46 million relating to investments and acquisitions of businesses, $152 million to acquire music-related assets and $111 million relating to capital expenditures, partially offset by $36 million of proceeds from the sale of investments. The $201 million of cash used in investing activities in the nine months ended June 30, 2024 consisted of $26 million relating to investments and acquisitions of businesses, $123 million to acquire music-related assets, and $83 million relating to capital expenditures, partially offset by $19 million of proceeds from divestitures and $12 million of proceeds from the sale of investments.

***Financing Activities***

Cash used in financing activities was $344 million for the nine months ended June 30, 2025 as compared with cash used in financing activities of $280 million for the nine months ended June 30, 2024. The $344 million of cash used in financing activities for the nine months ended June 30, 2025 consisted of dividends paid of $283 million, payment of deferred consideration of $23 million, distributions to noncontrolling interest holders of $8 million, taxes paid related to net share settlement of restricted stock units and common stock of $19 million, common stock repurchased and retired of $3 million, repayment of the Term Loan Mortgage of $1 million and other financing activity of $7 million. The $280 million of cash used in financing activities for the nine months ended June 30, 2024 consisted of dividends paid of $267 million and distributions to noncontrolling interest holders of $6 million, taxes paid related to net share settlement of restricted stock units and common stock of $5 million and deferred financing costs paid of $2 million.

**Liquidity**

Our primary sources of liquidity are the cash flows generated from our subsidiaries' operations, available cash and equivalents and funds available for drawing under our Revolving Credit Facility. These sources of liquidity are needed to fund our debt service requirements, working capital requirements, capital expenditure requirements, strategic acquisitions and investments, and dividends, prepayments of debt, repurchases or retirement of our outstanding debt or notes or repurchases of our outstanding equity securities in open market purchases, privately negotiated purchases or otherwise, we may elect to pay or make in the future. We maintain our cash in various banks and other financial institutions around the world, and in some cases those cash deposits are in

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excess of FDIC or other deposit insurance. In the event of a bank failure or receivership, we may not have access to those cash deposits in excess of the relevant deposit insurance, which could have an adverse effect on our liquidity and financial performance.

We believe that our primary sources of liquidity will be sufficient to support our existing operations over the next twelve months.

**Debt Capital Structure**

Since Access acquired us in 2011, we have sought to extend the maturity dates on our outstanding indebtedness, reduce interest expense and improve our debt ratings. For example, our S&P corporate credit rating improved from B in 2017 to BBB- in August 2024 with a stable outlook, and our Moody's corporate family rating improved from B1 in 2016 to Ba1 in March 2025 with a positive outlook updated in March 2025. In September 2024, Fitch assigned us a BBB- long-term credit rating with a stable outlook. In addition, our weighted-average interest rate on our outstanding indebtedness has decreased from 10.5% in 2011 to 4.1% as of June 30, 2025. Our nearest-term maturity date is in 2028. Subject to market conditions, we expect to continue to take opportunistic steps to extend our maturity dates and reduce related interest expense. From time to time, we may incur additional indebtedness for, among other things, working capital, repurchasing, redeeming or tendering for existing indebtedness and acquisitions or other strategic transactions.

**Repurchase Program**

On November 14, 2024, the Company's board of directors authorized a new $100 million share repurchase program (the "Share Repurchase Program"), which is intended to offset dilution from the Omnibus Incentive Plan. The $100 million share repurchase authorization does not obligate the Company to purchase any shares and the Share Repurchase Program does not have a fixed expiration date. As of June 30, 2025, approximately $97 million of the $100 million share repurchase authorization remained available.

The Company repurchased and retired 20,000 shares for $1 million during the three months ended June 30, 2025. The Company repurchased and retired 80,383 shares for $3 million during the nine months ended June 30, 2025.

***Existing Debt as of June 30, 2025***

As of June 30, 2025, our long-term debt was as follows (in millions):

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| | |
|:---|:---|
| Revolving Credit Facility (a) | $— |
| Senior Term Loan Facility due 2031 | 1295 |
| 2.750% Senior Secured Notes due 2028 | 381 |
| 3.750% Senior Secured Notes due 2029 | 540 |
| 3.875% Senior Secured Notes due 2030 | 535 |
| 2.250% Senior Secured Notes due 2031 | 522 |
| 3.000% Senior Secured Notes due 2031 | 800 |
| Mortgage Term Loan due 2033 | 17 |
| Total debt, including the current portion | 4090 |
| Premium less unamortized discount and unamortized DFCs | (29) |
| Total Acquisition Corp. long-term debt, including the current portion, net | $4061 |
| Tempo Asset-Based Notes due 2050 | 311 |
| Unamortized discount | (9) |
| Total asset-based long-term debt, including the current portion, net (b) | $302 |
| Total long-term debt, including the current portion, net | $4363 |

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(a)Reflects $350 million of commitments under the Revolving Credit Facility with no letters of credit outstanding at June 30, 2025. There were no loan outstanding under the Revolving Credit Facility at June 30, 2025.

(b)The Asset-Based Notes are secured only by certain music rights owned by Tempo and are nonrecourse to the Company and its subsidiaries, other than Tempo.

For further discussion of our debt agreements, see "Liquidity" in the "Financial Condition and Liquidity" section of our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

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**Dividends**

The Company's ability to pay dividends may be restricted by covenants in the credit agreement for the Revolving Credit Facility which are currently suspended but which will be reinstated if Acquisition Corp.'s Total Indebtedness to EBITDA Ratio increases above 3.50:1.00 and the term loans do not achieve an investment grade rating.

The Company intends to pay quarterly cash dividends to holders of its Class A Common Stock and Class B Common Stock. The declaration of each dividend will continue to be at the discretion of the Company's board of directors and will depend on the Company's financial condition, earnings, liquidity and capital requirements, level of indebtedness, contractual restrictions with respect to payment of dividends, restrictions imposed by Delaware law, general business conditions and any other factors that the Company's board of directors deems relevant in making such a determination. Therefore, there can be no assurance that the Company will pay any dividends to holders of the Company's common stock, or as to the amount of any such dividends.

On May 16, 2025, the Company's board of directors declared a cash dividend of $0.18 per share on the Company's Class A Common Stock and Class B Common Stock, as well as related payments under certain stock-based compensation plans, which was paid to stockholders on June 3, 2025. The Company paid an aggregate of approximately $94 million and $283 million, or $0.18 and $0.54 per share, in cash dividends to stockholders and participating security holders for the three and nine months ended June 30, 2025, respectively.

On August 7, 2025, the Company's board of directors declared a cash dividend of $0.19 per share on the Company's Class A Common Stock and Class B Common Stock, as well as related payments under certain stock-based compensation plans, payable on September 3, 2025 to stockholders of record as of the close of business on August 20, 2025.

**Covenant Compliance**

The Company was in compliance with its covenants under its outstanding notes, the Revolving Credit Facility and the Senior Term Loan Facility as of June 30, 2025.

On January 18, 2019, we delivered a notice to the trustee under the 2012 Secured Indenture and 2014 Unsecured Indenture changing the Fixed GAAP Date, as defined under the indentures, to October 1, 2018. Under the Senior Term Loan Facility, the Revolving Credit Facility and the Secured Notes Indenture, the Fixed GAAP Date is set for April 3, 2020, other than in respect of capital leases, which are frozen at November 1, 2012.

The Revolving Credit Facility contains a springing leverage ratio that is tied to a ratio based on EBITDA, which is defined under the Revolving Credit Agreement. Our ability to borrow funds under the Revolving Credit Facility may depend upon our ability to meet the leverage ratio test at the end of a fiscal quarter to the extent we have drawn a certain amount of revolving loans. On May 4, 2021, certain covenants set forth in our Revolving Credit Facility were suspended, including the restriction on incurring certain additional indebtedness, based on the determination that the total indebtedness to EBITDA ratio is below the required threshold specified therein. EBITDA as defined in the Revolving Credit Facility is based on Consolidated Net Income (as defined in the Revolving Credit Facility), both of which terms differ from the terms "EBITDA" and "net income" as they are commonly used. For example, the calculation of EBITDA under the Revolving Credit Facility, in addition to adjusting net income to exclude interest expense, income taxes and depreciation and amortization, also adjusts net income by excluding items or expenses such as, among other items, (1) the amount of any restructuring charges or reserves; (2) any non-cash charges (including any impairment charges); (3) any net loss resulting from hedging currency exchange risks; (4) the amount of management, monitoring, consulting and advisory fees paid to Access; (5) business optimization expenses (including consolidation initiatives, severance costs and other costs relating to initiatives aimed at profitability improvement); (6) transaction expenses; (7) equity-based compensation expense; and (8) certain extraordinary, unusual or non-recurring items. The definition of EBITDA under the Revolving Credit Facility also includes adjustments for the pro forma impact of certain projected cost savings, operating expense reductions and synergies and any quality of earnings analysis prepared by independent certified public accountants in connection with an acquisition, merger, consolidation or other investment. The Senior Term Loan Facility and the Secured Notes Indenture use financial measures called "Consolidated EBITDA" or "EBITDA" and "Consolidated Net Income" that have substantially the same definitions to EBITDA and Consolidated Net Income, each as defined under the Revolving Credit Agreement.

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EBITDA as defined in the Revolving Credit Facility (referred to in this section as "Adjusted EBITDA") is presented herein because it is a material component of the leverage ratio contained in the Revolving Credit Agreement. Non-compliance with the leverage ratio could result in the inability to use the Revolving Credit Facility, which could have a material adverse effect on our results of operations, financial position and cash flow. Adjusted EBITDA does not represent net income or cash from operating activities as those terms are defined by U.S. GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. While Adjusted EBITDA and similar measures are frequently used as measures of operations and the ability to meet debt service requirements, these terms are not necessarily comparable to other similarly titled captions of other companies due to the potential inconsistencies in the method of calculation. Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters that we may consider not to be indicative of our ongoing operations. In particular, the definition of Adjusted EBITDA in the Revolving Credit Agreement allows us to add back certain non-cash, extraordinary, unusual or non-recurring charges that are deducted in calculating net income. However, these are expenses that may recur, vary greatly and are difficult to predict.

Adjusted EBITDA as presented below should not be used by investors as an indicator of performance for any future period. Further, our debt instruments require that it be calculated for the most recent four fiscal quarters. As a result, the measure can be disproportionately affected by a particularly strong or weak quarter. Further, it may not be comparable to the measure for any subsequent four-quarter period or any complete fiscal year. In addition, our debt instruments require that the leverage ratio be calculated on a pro forma basis for certain transactions including acquisitions as if such transactions had occurred on the first date of the measurement period and may include expected cost savings and synergies resulting from or related to any such transaction. There can be no assurances that any such cost savings or synergies will be achieved in full.

In addition, Adjusted EBITDA is a key measure used by our management to understand and evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of those limitations include: (1) it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenue for our business; (2) it does not reflect the significant interest expense or cash requirements necessary to service interest or principal payments on our indebtedness; and (3) it does not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments. In particular, this measure adds back certain non-cash, extraordinary, unusual or non-recurring charges that are deducted in calculating net income; however, these are expenses that may recur, vary greatly and are difficult to predict. In addition, Adjusted EBITDA is not the same as net income or cash flow provided by operating activities as those terms are defined by U.S. GAAP and does not necessarily indicate whether cash flows will be sufficient to fund cash needs. Accordingly, Adjusted EBITDA should be considered in addition to, not as a substitute for, net income (loss) and other measures of financial performance reported in accordance with U.S. GAAP.

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The following is a reconciliation of net income (loss), which is a U.S. GAAP measure of our operating results, to Adjusted EBITDA as defined, for the most recently ended four fiscal quarters, or the twelve months ended June 30, 2025, for the twelve months ended June 30, 2024 and for the three months ended June 30, 2025 and June 30, 2024. In addition, the reconciliation includes the calculation of the Senior Secured Indebtedness to Adjusted EBITDA ratio, which we refer to as the Leverage Ratio, under the Revolving Credit Agreement for the most recently ended four fiscal quarters, or the twelve months ended June 30, 2025. The terms and related calculations are defined in the Revolving Credit Agreement. All amounts in the reconciliation below reflect Acquisition Corp. (in millions, except ratios):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Twelve Months Ended<br>June 30,** | **Twelve Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** | **Three Months Ended<br>June 30,** |
| | **2025** | **2024** | **2025** | **2024** |
| **Net Income (loss)** | $309 | $584 | $(16) | $141 |
| Income tax expense | 126 | 178 | 5 | 30 |
| Interest expense, net | 159 | 157 | 43 | 40 |
| Depreciation and amortization | 355 | 323 | 96 | 80 |
| Net gains on divestitures and sale of securities | (29) | (42) |  | (1) |
| Restructuring costs (a) | 96 | 61 | 3 | 2 |
| Net foreign exchange losses (gains) (b) | 140 | (17) | 142 | (2) |
| Transaction costs | 6 | 8 | 3 | 2 |
| Business optimization expenses (c) | 96 | 98 | 23 | 27 |
| Non-cash stock-based compensation expense (d) | 67 | 35 | 16 | 10 |
| Other non-cash charges (e) | 102 | 56 | 72 | 1 |
| Unrestricted subsidiary income (loss) | (10) |  | (6) |  |
| Pro forma impact of cost savings initiatives and specified transactions (f) | 302 | 113 | 75 | 22 |
| **Adjusted EBITDA** | $**1719** | $**1554** | $**456** | $**352** |
| **Senior Secured Indebtedness (g)** | $**3551** |  |  |  |
| **Leverage Ratio (h)** | **2.07x** |  |  |  |

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(a)Reflects severance costs and other restructuring related expenses, including those related to the 2024 Strategic Restructuring Plan as well as the Executive Transition Costs in both the current and prior year.

(b)Reflects unrealized losses (gains) due to foreign exchange on our Euro-denominated debt, losses (gains) from foreign currency forward exchange contracts and intercompany transactions.

(c)Reflects costs associated with our transformation initiatives and technology system updates, which includes costs of $19 million and $74 million related to our finance transformation for the three and twelve months ended June 30, 2025, respectively, as well as $18 million and $70 million for the three and twelve months ended June 30, 2024, respectively.

(d)Reflects non-cash stock-based compensation expense related to the Omnibus Incentive Plan.

(e)Reflects non-cash activity, including the unrealized losses (gains) on the mark-to-market adjustment of equity investments, investment losses (gains) and non-cash impairment losses resulting from the 2024 Strategic Restructuring Plan as well as an impairment charge of $70 million for long-lived assets associated with certain of the Company's non-core e-tailer operations recognized in the current period.

(f)Reflects expected savings resulting from transformation initiatives, including the 2025 Restructuring Plan, the 2024 Strategic Restructuring Plan, and the 2023 Restructuring Plan, as well as the pro forma impact of certain specified transactions for the three and twelve months ended June 30, 2025. Certain of these cost savings initiatives and transactions impacted quarters prior to the quarter during which they were identified within the last twelve-month period. The pro forma impact of these specified transactions and initiatives resulted in a $168 million increase in the twelve months ended June 30, 2025 Adjusted EBITDA.

(g)Reflects the balance of senior secured debt at Acquisition Corp. of approximately $4.061 billion less cash of $510 million, which excludes cash held at Tempo, an unrestricted subsidiary.

(h)Reflects the ratio of Senior Secured Indebtedness, including Revolving Credit Agreement Indebtedness, to Adjusted EBITDA. This is calculated net of cash and equivalents of the Company as of June 30, 2025 not exceeding $750 million in accordance with the Sixth Revolving Credit Agreement Amendment. If the outstanding aggregate principal amount of borrowings and drawings under letters of credit which have not been reimbursed under our Revolving Credit Facility is greater than $140 million at the end of a fiscal quarter, the maximum leverage ratio permitted under the Revolving Credit Facility is 5.00:1.00. The Company's Revolving Credit Facility does not impose any "leverage ratio" maintenance requirement on the Company when the aggregate principal amount of borrowings and drawings under letters of credit, which have not been reimbursed under the Revolving Credit Facility, is less than or equal to $140 million at the end of a fiscal

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quarter. On May 4, 2021, certain covenants set forth in our Revolving Credit Facility were suspended, including the restriction on incurring certain additional indebtedness, based on the determination that the total indebtedness to EBITDA ratio is below the required threshold specified therein. In connection with the acquisition of Tempo, the acquired entity was designated as an unrestricted subsidiary, and therefore net income and Adjusted EBITDA do not include the results of Tempo, and the Asset-Based Notes issued by a subsidiary of Tempo are not included in our indebtedness for purposes of calculating the Leverage Ratio.

**Summary**

Management believes that funds generated from our operations and borrowings under the Revolving Credit Facility and available cash and equivalents will be sufficient to fund our debt service requirements, working capital requirements and capital expenditure requirements for the foreseeable future. We also have additional borrowing capacity under our indentures and the Senior Term Loan Facility. However, our ability to continue to fund these items and to reduce debt may be affected by general economic, financial, competitive, legislative and regulatory factors, as well as other industry-specific factors such as the ability to control music piracy and the continued transition from physical to digital formats in the recorded music and music publishing industries. It could also be affected by the severity and duration of geopolitical conflicts or natural or man-made disasters, including pandemics. We and our affiliates continue to evaluate opportunities to, from time to time, depending on market conditions and prices, contractual restrictions, our financial liquidity and other factors, seek to pay dividends or prepay outstanding debt or repurchase or retire Acquisition Corp.'s outstanding debt or debt securities or repurchase our outstanding equity securities in open market purchases, privately negotiated purchases or otherwise. The amounts involved in any such transactions, individually or in the aggregate, may be material and may be funded from available cash or from additional borrowings. In addition, from time to time, depending on market conditions and prices, contractual restrictions, our financial liquidity and other factors, we may seek to refinance the Senior Credit Facilities or our outstanding debt or debt securities with existing cash and/or with funds provided from additional borrowings.

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**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

As discussed in Note 17 to our audited consolidated financial statements for the fiscal year ended September 30, 2024, the Company is exposed to market risk arising from changes in market rates and prices, including movements in foreign currency exchange rates and interest rates. As of June 30, 2025, other than as described below, there have been no material changes to the Company's exposure to market risk since September 30, 2024.

**Foreign Currency Risk**

Within our global business operations, we have transactional exposures that may be adversely affected by changes in foreign currency exchange rates relative to the U.S. dollar. We may at times choose to use foreign exchange currency derivatives, primarily forward contracts, to manage the risk associated with the volatility of future cash flows denominated in foreign currencies, such as unremitted or future royalties and license fees owed to our U.S. companies for the sale or licensing of U.S.-based music and merchandise abroad that may be adversely affected by changes in foreign currency exchange rates. We focus on managing the level of exposure to the risk of foreign currency exchange rate fluctuations on major currencies, which can include the Euro, British pound sterling, Japanese yen, Canadian dollar, Swedish krona, Australian dollar, Brazilian real, Mexican Peso, Norwegian krone, and Polish Zloty and in many cases we have natural hedges where we have expenses associated with local operations that offset the revenue in local currency and our Euro-denominated debt, which can offset fluctuations in the Euro. As of June 30, 2025, the Company had outstanding foreign currency forward exchange contracts for the sale of $197 million and the purchase of $124 million of foreign currencies at fixed rates. Subsequent to June 30, 2025, certain of our foreign exchange contracts expired and were not replaced.

The fair value of foreign exchange contracts is subject to changes in foreign currency exchange rates. For the purpose of assessing the specific risks, we use a sensitivity analysis to determine the effects that market risk exposures may have on the fair value of our financial instruments. For foreign exchange forward contracts outstanding at June 30, 2025, we typically perform a sensitivity analysis assuming a hypothetical 10% depreciation of the U.S. dollar against foreign currencies from prevailing foreign currency exchange rates and assuming no change in interest rates. The fair value of the foreign exchange forward contracts would have decreased by $7 million based on this analysis. Hypothetically, even if there was a decrease in the fair value of the forward contracts, because our foreign exchange contracts are used to manage foreign currency exchange rate risk, these losses would be largely offset by gains on the underlying transactions.

**Interest Rate Risk**

We had $4.401 billion of principal debt outstanding at June 30, 2025, of which $1.312 billion was variable-rate debt and $3.089 billion was fixed-rate debt. As such, we are exposed to changes in interest rates. At June 30, 2025, 70% of the Company's debt was at a fixed rate. In addition, as of June 30, 2025, we have the option under our floating rate loans under the Senior Term Loan Facility to select a one, three or six month Term SOFR.

Based on the level of interest rates prevailing at June 30, 2025, the fair value of the Company's fixed-rate and variable-rate debt was approximately $4.217 billion. Further, as of June 30, 2025, based on the amount of the Company's fixed-rate debt, a 25 basis point increase or decrease in the level of interest rates would decrease the fair value of the fixed-rate debt by approximately $31 million or increase the fair value of the fixed-rate debt by approximately $32 million. This potential fluctuation is based on the simplified assumption that the level of fixed-rate debt remains constant with an immediate across the board increase or decrease in the level of interest rates with no subsequent changes in rates for the remainder of the period.

**Inflation Risk**

Inflationary factors such as increases in overhead costs may adversely affect our results of operations. We do not believe that inflation has had a material effect on our business, financial condition or results of operations to date. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases for services. Our inability or failure to do so could harm our business, financial condition or results of operations.

------

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES**

*Certification*

The certifications of the principal executive officer and the principal financial officer (or persons performing similar functions) required by Rules 13a-14(a) and 15d-14(a) of the Exchange Act (the "Certifications") are filed as exhibits to this report. This section of the report contains the information concerning the evaluation of the Company's disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) ("Disclosure Controls") and changes to internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) ("Internal Controls") referred to in the Certifications and this information should be read in conjunction with the Certifications for a more complete understanding of the topics presented.

*Introduction*

The SEC's rules define "disclosure controls and procedures" as controls and procedures that are designed to ensure that information required to be disclosed by public companies in the reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by public companies in the reports that they file or submit under the Exchange Act is accumulated and communicated to a company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

The SEC's rules define "internal control over financial reporting" as a process designed by, or under the supervision of, a public company's principal executive and principal financial officers, or persons performing similar functions, and effected by the Company's board of directors, management and other personnel, 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, or U.S. GAAP, including those policies and procedures that: (i) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company, (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

The Company's management, including its principal executive officer and principal financial officer, does not expect that our Disclosure Controls or Internal Controls will prevent or detect all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the limitations in any and all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Further, the design of any control system is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of these inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected even when effective Disclosure Controls and Internal Controls are in place.

The Company previously started a multi-year implementation to upgrade our information technology and finance infrastructure, including related systems and processes. The upgrades are designed to enhance our financial records and the flow of financial information, improve data analysis and accelerate our financial reporting. The deployment of our new technology platform is currently being implemented using a wave-based approach. As of June 2025, the Company has completed the launch of the core financials component of our new technology platform for the Music Publishing segment as well as various Recorded Music territories. The Company will continue to roll out this component and additional components of the Enterprise Resource Planning ("ERP") system in phases across our organization.

In connection with this ERP implementation, the Company has updated our internal controls over financial reporting, as necessary, to allow for modifications to our business processes and accounting procedures. As the wave-based implementation of our new technology platform continues, the Company will continue to change its processes and procedures which, in turn, could result in further changes to our internal controls over financial reporting. As such changes occur, the Company will evaluate whether such changes materially affect our internal control over financial reporting.

*Evaluation of Disclosure Controls and Procedures*

Based on management's evaluation (with the participation of the Company's principal executive officer and principal financial officer), as of the end of the period covered by this report, the Company's principal executive officer and principal financial officer have concluded that the Company's Disclosure Controls are effective to provide reasonable assurance that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act will be recorded, processed, summarized and

------

reported within the time periods specified in SEC rules and forms, including that such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

*Changes in Internal Control over Financial Reporting*

Except as described above, there have been no changes in our internal control over financial reporting that occurred during the three and nine months ended June 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

------

**PART II. OTHER INFORMATION**

**ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS**

From time to time the Company is involved in claims and legal proceedings that arise in the ordinary course of business. The Company is currently subject to several such claims and legal proceedings. Based on currently available information, the Company does not believe that resolution of pending matters will have a material adverse effect on its financial condition, cash flows or results of operations. However, litigation is subject to inherent uncertainties, and there can be no assurances that the Company's defenses will be successful or that any such lawsuit or claim would not have a material adverse impact on the Company's business, financial condition, cash flows and results of operations in a particular period. Any claims or proceedings against the Company, whether meritorious or not, can have an adverse impact because of defense costs, diversion of management and operational resources, negative publicity and other factors.

**ITEM 1A.&nbsp;&nbsp;&nbsp;&nbsp;RISK FACTORS**

There are no material changes to the risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2024.

**ITEM 2.&nbsp;&nbsp;&nbsp;&nbsp;UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS**

The following table provides information about purchases made by or on behalf of the Company or any "affiliated purchaser" (as defined in Rule 10b-18(a)(3) under the Exchange Act) of the Company's Class A common stock during the three months ended June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Period | Total Number of Shares Repurchased | Average Price Paid per Share&nbsp;&nbsp;&nbsp;&nbsp; | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs&nbsp;&nbsp;&nbsp;&nbsp; | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions) |
| April 2025 | 20000 | $29.50 | 20000 | $97 |
| May 2025 |  |  |  | 97 |
| June 2025 |  |  |  | 97 |

---

**ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;DEFAULTS UPON SENIOR SECURITIES**

Not applicable.

**ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;MINE SAFETY DISCLOSURES**

Not applicable.

**ITEM 5.&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION**

On August 5, 2025 (the "Closing Date"), Warner Music Inc. ("WMG"), a wholly owned subsidiary of the Company, entered into a Unit Purchase Agreement (the "Agreement") by and among WMG, TenThousand Projects Holdings LLC ("10K Projects"), TenThousand Projects, LLC ("Seller") and certain other parties thereto, pursuant to which WMG acquired from Seller, all of the common units of 10K Projects not already directly or indirectly owned by WMG (the "10K Units"), representing 49% of the issued and outstanding equity interests of 10K Projects.

The aggregate contractually agreed consideration for the 10K Units is $165 million, subject to contractual adjustments, payable by WMG in two installments. The first installment will be satisfied by a cash payment of $40 million (of which $30 million was paid on the Closing Date and $10 million will be paid on or about December 1, 2025) and issuance on the Closing Date of 1,416,666 shares of Class A Common Stock, the number of which was determined by dividing $42.5 million by $30 per share. The second installment is payable on the first anniversary of the Closing Date and will be satisfied, at the sole discretion of WMG, either by the issuance of 2,750,000 shares of Class A Common Stock, the number of which was determined by dividing $82.5 million by $30 per share, or in cash for an amount determined by multiplying 2,750,000 shares by the share price on the trading day immediately preceding issuance.

------

The Class A Common Stock issued pursuant to the Agreement will be governed by lock-up periods, subject to certain exceptions, which will begin on the date of issuance and end (i) in respect of 1,416,666 shares of the Class A Common Stock issued on the Closing Date, on March 1, 2026 and (ii) in respect of the 2,750,000 shares of Class A Common Stock issued at the first anniversary of the Closing Date, on the date that is the second anniversary of the Closing Date.

The Class A Common Stock issued pursuant to the Agreement will be sold in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act, in a transaction not involving a public offering.

------

**ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS**

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Exhibit Description** |
| 10.1\*† | <u>[Mutual Separation Agreement and Release, dated](castellani_bryanx2025xsepa.htm)[May 5](castellani_bryanx2025xsepa.htm)[,](castellani_bryanx2025xsepa.htm)[202](castellani_bryanx2025xsepa.htm)[5](castellani_bryanx2025xsepa.htm)[, between Warner Music Inc. and](castellani_bryanx2025xsepa.htm)[Bryan Castellani](castellani_bryanx2025xsepa.htm)</u> |
| 10.2\*† | <u>[Employment Agreement, dated](zerzaarmin-2025empagwwmg.htm)[A](zerzaarmin-2025empagwwmg.htm)[pril 10](zerzaarmin-2025empagwwmg.htm)[, 202](zerzaarmin-2025empagwwmg.htm)[5](zerzaarmin-2025empagwwmg.htm)[, between](zerzaarmin-2025empagwwmg.htm)[Warner Music](zerzaarmin-2025empagwwmg.htm)[Inc](zerzaarmin-2025empagwwmg.htm)[.](zerzaarmin-2025empagwwmg.htm)[and](zerzaarmin-2025empagwwmg.htm)[Armin Zerza](zerzaarmin-2025empagwwmg.htm)</u> |
| 10.3\*†† | <u>[Master Operation](projectalfred-masteroperat.htm)[s and Economics Agreement by and amo](projectalfred-masteroperat.htm)[ng BCSS W JV Investments (B), L.P., WMG BC Holdco LLC, Beethoven JV 1, LLC, Beethoven Holdings 1, LLC, Beethoven Financi](projectalfred-masteroperat.htm)[ng 1, LLC and WMG Acquisition Corp.](projectalfred-masteroperat.htm)</u> |
| 10.4\*†† | <u>[A](projectalfred-beethoven1ll.htm)[mende](projectalfred-beethoven1ll.htm)[d and Restated Limited](projectalfred-beethoven1ll.htm)[Liability](projectalfred-beethoven1ll.htm)[Company Agreement of](projectalfred-beethoven1ll.htm)[Beethoven JV 1, LLC](projectalfred-beethoven1ll.htm)</u> |
| 10.5\*†† | <u>[C](bainwmgjvco-creditandsecur.htm)[redit and Security Agreement among Beethov](bainwmgjvco-creditandsecur.htm)[en](bainwmgjvco-creditandsecur.htm)[Financing 1, LLC, Beethoven Holdings 1, LLC, Fifth Third Bank National Association](bainwmgjvco-creditandsecur.htm)[, Goldman Sachs Bank USA](bainwmgjvco-creditandsecur.htm)[and](bainwmgjvco-creditandsecur.htm)[The Bank of New York Mellon](bainwmgjvco-creditandsecur.htm)</u> |
| 10.6\*†† | <u>[First Amendment to](bainwmgjvco-firstamendment.htm)[Credit and Security Agreement among Beethoven Financing 1, LLC, Beethoven Holdings 1, LLC, Fifth Third Bank National Association, Goldman Sachs Bank USA and The Bank of New York Mellon](bainwmgjvco-firstamendment.htm)</u> |
| 31.1\* | <u>[Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended](q32025ex311.htm)</u> |
| 31.2\* | <u>[Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended](q32025ex312.htm)</u> |
| 32.1\*\* | <u>[Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q32025ex321.htm)</u> |
| 32.2\*\* | <u>[Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002](q32025ex322.htm)</u> |
| 101.INS | Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
| 101.SCH | XBRL Taxonomy Extension Schema Document |
| 101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |

---

______________________________________

\*&nbsp;&nbsp;&nbsp;&nbsp;Filed herewith.

\*\*&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to SEC Release No. 33-8212, this certification will be treated as "accompanying" this Quarterly Report on Form 10-Q and not "filed" as part of such report for purposes of Section 18 of the Securities Exchange Act, as amended, or otherwise subject to the liability of Section 18 of the Securities Exchange Act, as amended, and this certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, except to the extent that the registrant specifically incorporates it by reference.

†&nbsp;&nbsp;&nbsp;&nbsp;Identifies each management contract or compensatory plan or arrangement in which directors and/or executive officers are eligible to participate.

††&nbsp;&nbsp;&nbsp;&nbsp;Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10(iv) of Regulation S-K. The registrant agrees to furnish supplementally an unredacted copy of the exhibit to the Securities and Exchange Commission upon its request.

------

**SIGNATURES**

Pursuant to the requirements 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.

August 7, 2025

---

| | |
|:---|:---|
| WARNER MUSIC GROUP CORP. | WARNER MUSIC GROUP CORP. |
| By: | /s/&nbsp;&nbsp;&nbsp;&nbsp;ROBERT KYNCL |
| **Name:<br>Title:** | **Robert Kyncl<br>Chief Executive Officer<br>(Principal Executive Officer)** |
| By: | /s/&nbsp;&nbsp;&nbsp;&nbsp;ARMIN ZERZA |
| **Name:<br>Title:** | **Armin Zerza**<br>**Chief Financial Officer**<br>**(Principal Financial Officer and**<br>**Principal Accounting Officer)** |

---

## Exhibit 10.1

Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

![image_0.jpg](image_0.jpg) Exhibit 10.1

Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

<u>SEPARATION AGREEMENT AND RELEASE</u>

This SEPARATION AGREEMENT AND RELEASE ("Agreement") is between Bryan Castellani ("you") and Warner Music Inc. ("Company"). You and Company agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Separation Date and Transition</u>. Your employment with Company will end on September 30, 2025 (the "Separation Date"); provided that on May 5, 2025 (the "Transition Date") you will step down as Executive Vice President and Chief Financial Officer, Warner Music Group Corp. ("WMG Corp."). During the period running from the Transition Date through the Separation Date (the "Transition Period"), you will remain employed by Company in an advisory capacity and you agree to render transition services to Company, as directed by Company's CEO, conscientiously devoting your good faith efforts and abilities thereto. As of the Transition Date, you hereby resign as an officer and/or director of Company and its subsidiaries and affiliates (as applicable), and you hereby further agree to execute promptly at Company's request any additional documents necessary to effectuate this resignation. As of the Separation Date, you will have no further authority or responsibilities as an employee of Company and the Term of the Employment Agreement between you and Company dated September 1, 2023 (the "Employment Agreement") will be terminated, with no liability to either you or Company thereunder. Notwithstanding anything to the contrary contained in this Agreement, if Company terminates your employment for any act or omission that constitutes Cause under the Employment Agreement or you terminate your employment for any reason prior to the Separation Date, you will forfeit all rights and entitlements to any amounts otherwise due and owing to you under this Agreement, including the Separation Benefits (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Separation Benefits</u>. The following separation benefits described in Paragraphs (a) through (d) (collectively, the "Separation Benefits") are in exchange for the promises you are making in this Agreement, and specifically the release in Paragraph 4(a) and the Re-affirmation (as defined below), provided that (x) this Agreement is executed in full no later than twenty-one

(21) days following the date you receive this Agreement (the "Consideration Period"); (y) the Re-affirmation is executed and delivered to Company by you within five (5) business days of the Separation Date; and (z) neither this Agreement nor the Re-affirmation is revoked pursuant to Paragraph 11(b). You are not required to seek other employment to receive the Separation Benefits, and Company will not reduce the Separation Benefits if you obtain other earnings.

&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)Company will pay you severance in the form of salary continuation, consistent with regular payroll practices. Your total gross severance payment will be $1,650,000 (the "Severance"), payable in substantially equal installments over a period of 52 weeks in the same manner and timing as Company makes regular payroll payments to its employees generally. Payments shall commence on the next possible pay cycle following the later of (i) the Separation Date and (ii) the date the Re-affirmation is executed by you and is no longer revocable pursuant to Paragraph 11(b) (the "Release Effective Date"); provided that if the Consideration Period (together with the 7-day revocation period described in Paragraph 11(b)) spans two (2) calendar years, then payments shall not commence until the second calendar year even if the Release Effective Date occurs in the prior year.

&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)Company will grant to you an annual bonus with a target amount of

$1,100,000 with respect to Company's 2025 fiscal year, payable when bonuses in respect of the

------

Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

![image_0.jpg](image_0.jpg)

Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

2025 fiscal year are paid to employees of Company generally, but in no event later than March 15, 2026. The actual bonus amount payable to you will be determined by the Compensation Committee (the "Compensation Committee") of the Board of Directors (the "Board") of WMG Corp. based on corporate performance measures for the 2025 fiscal year as established and determined by the Compensation Committee.

&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)Company will pay you in a lump sum on the next possible pay cycle following the later of the Separation Date and the Release Effective Date, an amount such that after deduction of all required payroll withholding thereon, the net amount payable to you equals

$40,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)WMG Corp. will grant you an award of WMG Corp. Restricted Stock Units (as defined in the Plan (as defined below)) on or before the Separation Date. The aggregate pre-tax grant date value of Restricted Stock Units granted to you will be $1,000,000, with the number of shares of WMG Corp.'s Class A common stock covered by such awards determined by the average closing share price of WMG Corp.'s Class A Common Stock for the six months preceding the grant date as selected by the Administrator (as defined in the Plan), and such award will be on terms specified by the Administrator (including vesting requirements and treatment of such award upon termination of employment) and as set forth in a separate award agreement; provided that the vesting period for such award shall be four (4) years from the date on which WMG Corp. makes regularly scheduled annual Restricted Stock Unit grants in January 2026.

Notwithstanding the foregoing, if you become re-employed with Company or any of its parent companies, subsidiaries or affiliates, your Severance and all other Separation Benefits under this Paragraph 2 will stop as of the date you begin that employment and Company shall have no further obligations to you under this Paragraph. In addition, in the event of your death after the date on which this Agreement is executed in full but prior to the Separation Date, and provided that you have not revoked pursuant to Paragraph 11(b), (i) Company shall pay your estate the payments described in clauses (a), (b) and (c) above in the manner described therein, and (ii) the Separation Date for purposes of this Agreement shall be deemed to be date of your death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Payment of Accrued Wages and Time Off; Benefits Coverage; Equity Awards</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)Company will pay your wages accrued through the Separation Date, and vested and accrued vacation time (if any) that is unused as of the Separation Date, in each case in accordance with Company's policies. In addition, Company will pay for reasonable expenses actually incurred, or reimburse you for reasonable expenses paid, by you prior to the Separation Date in the performance of your services to Company in accordance with Company's policy for employees at your level upon presentation of expense statements or such other supporting information as Company may customarily require.

&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)During the period commencing immediately after the Separation Date and through the last day of the calendar month in which your termination occurs (such period, the "Benefits Period"), Company shall continue to provide you and your eligible family members with medical health insurance coverage, including dental and vision insurance coverage, under the group insurance plans maintained by Company in accordance with the terms of the applicable

2

4917-3548-6510, v. 5

------

Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

![image_0.jpg](image_0.jpg)

Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

plans and to the extent that you had elected such coverage prior to the Separation Date ("Benefits Coverage"). Following the Benefits Period, you and/or your eligible family members may have the right, in accordance with and subject to the Consolidated Omnibus Budget Reconciliation Act, as amended ("COBRA"), to elect to continue Benefits Coverage for such period of time as required under COBRA and at your expense. Further information regarding COBRA coverage, including enrollment forms and premium quotations, will be sent to you separately.

&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)Any outstanding awards granted to you under the WMG Corp. 2020 Omnibus Incentive Plan (the "Plan") shall be governed by the terms of the Plan and the applicable award agreements pursuant to which such awards were granted (collectively, the "Award Agreements"). This Agreement, including Paragraph 4(b), is not intended to and does not waive or limit any of Company's rights or any of your obligations under the Award Agreements or the Clawback Policies (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Mutual Waiver and Release</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)<u>Waiver and Release by You</u>. You agree that you are not otherwise entitled to receive the Separation Benefits under Paragraph 2 or Company's release pursuant to Paragraph 4(b), and that these benefits are sufficient consideration for the following waiver and release:

In exchange for the payments and other benefits you are receiving under this Agreement, you, on behalf of yourself, your personal representatives, heirs, estate, successors and assigns (collectively, "Your Group"), agree to waive, release and forever discharge Company, its successors, direct or indirect parents, direct or indirect subsidiaries and affiliates, and each of their respective current and former directors, officers, equityholders, partners (general or limited), members, agents, representatives and employees, and the employee benefit plans and programs of each, including any long term incentive plans (all such plans and programs and any successor plan thereto, collectively, the "Employee Benefit Plans"), and the plan sponsors, plan administrators, benefit officers, administrative committees, investment committees and administrative committees of the Employee Benefit Plans, and all successors and assigns of all of the foregoing (collectively, "Company Group") from **<u>all claims of any kind</u>**. You, on behalf of yourself and Your Group, release Company Group from liability for any claims or damages you may have against it as of the date you sign this Agreement, whether those claims are known to you or unknown, *except* for claims that cannot be waived or released under the law or as otherwise provided in Paragraphs 15 and 16. Your release on behalf of yourself and Your Group includes all claims relating to the Employment Agreement, your employment with Company, your benefits through Company or the termination of your employment, whether arising under common law, federal, state or local law, regulation, ordinance or order. Examples of claims waived and released by you on behalf of yourself and Your Group include any alleged violation of the following laws and other sources of legal rights, each as amended and including regulations issued thereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Title VII of the Civil Rights Act of 1964;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sections 1981 through 1988 of Title 42 of the United States Code;

3

4917-3548-6510, v. 5

------

Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

![image_0.jpg](image_0.jpg)

Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Employee Retirement Income Security Act of 1974 (except to the extent provided otherwise in Paragraph 15);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Immigration Reform and Control Act of 1986;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Americans with Disabilities Act of 1990;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Age Discrimination in Employment Act of 1967;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Worker Adjustment and Retraining Notification Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Occupational Safety and Health Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Rehabilitation Act of 1973;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Fair Credit Reporting Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Equal Pay Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Family and Medical Leave Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Civil Rights Act of 1991;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Genetic Information Nondiscrimination Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Human Rights Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Executive Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Labor Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Civil Rights Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Equal Pay Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Whistleblower Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Wage-Hour and Wage Payment Laws and Regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Minimum Wage Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Anti-Retaliation/Non-Discrimination Provisions of the New York Workers' Compensation Law and the New York State Disabilities Benefits Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York State Worker Adjustment and Retraining Notification Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York Paid Family Leave Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York City Human Rights Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the New York City Administrative Code and Charter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any other federal, state, local or other law, rule, regulation, constitution, code, executive order, guideline or ordinance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any public policy, contract (oral or written, express or implied), tort law or common law, including any claim for wrongful termination in violation of public policy; and

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any act, statute, common law, agreement or other basis for seeking or recovering any award of costs, fees or other expenses, including attorneys' fees and/or costs.

&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>Waiver and Release by Company</u>. Subject to Paragraph 3(c) and Paragraph 19 and provided that you have not revoked the waiver and release of claims or the Re- affirmation, Company, on behalf of itself and Company Group, waives, releases and forever discharges you and Your Group from all claims Company and Company Group may have against you and Your Group as of the date Company signs this Agreement, under any common law, federal, state or local law, regulation, ordinance or order, arising out of your employment with Company, except for any claim to enforce this Agreement or any claim that you or Your Group committed a crime or engaged in acts or omissions to act constituting fraud, other willful misconduct, gross negligence or a material violation of material Company policies.

&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)<u>Re-affirmation of Your Waiver and Release</u>. In addition to the other provisions of this Agreement, in exchange for the consideration described in Paragraph 2 and Company's release pursuant to Paragraph 4(b), you shall execute and deliver to Company within five (5) business days of the Separation Date the re-affirmation of the waiver and release of claims and acknowledgments that are set forth in Paragraph 4(a) and Paragraph 5 in the form attached hereto as <u>Exhibit A</u> (the "Re-affirmation"). The seven (7) day revocation period applicable to your waiver and release of claims set forth in Paragraph 4(a), which is described in Paragraph 11(b), shall also apply to your execution and delivery of the Re-affirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Acknowledgments and Affirmations</u>. You affirm 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)you have not filed, caused to be filed, or presently are a party to any claim against Company Group;

&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)as of the date you sign this Agreement, except for the payments and benefits expressly set forth in this Agreement, you have been paid and/or have received all compensation, wages, bonuses, commissions and/or benefits which are due and payable, including any vested and accrued but unused vacation time and you are not entitled to any other payments or benefits from Company, including pursuant to the Warner Music Inc. Severance Plan for Regular U.S. Employees;

&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)Company has granted you any leave to which you were entitled from Company under the Family and Medical Leave Act or related state or local leave or disability accommodation 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)you have no known workplace injuries or occupational diseases;

&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)you are not Medicare eligible and have not filed a claim for Medicare

benefits;

&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)you are not aware of any fraud or wrongdoing by Company Group and

you have not been retaliated against for reporting any allegations of fraud or other wrongdoing by Company Group; and

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Confidentiality and Non-Disclosure</u>. Except as otherwise provided in Paragraph 8 or Paragraph 16, you shall not at any time exploit, use, sell, publish, disclose or communicate to any person, corporation or entity, either directly or indirectly, any trade secrets, privileged information, confidential information, business information or proprietary information regarding Company Group, including the terms of any agreements between Company or any of its affiliates and any third party. You shall not during the one-year period following the Separation Date, without the prior written approval of Executive Vice President, Chief Communications Officer for Warner Music Group, discuss any Company Topic (as defined below) with any press or media representative, nor shall you provide any information regarding any Company Topic to any press or media representative. "Company Topic" shall mean any matter relating to Company or its affiliates, including any of their respective employees or artists. However, nothing in this Agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Cooperation</u>. To the extent allowed by law, you agree to cooperate reasonably and truthfully with Company in the prosecution, defense, investigation, regulatory action or pursuit of any matter in which Company determines you were involved during your employment or about which you may have knowledge. You also agree not to voluntarily aid or assist any legal action or proceeding filed by third parties against Company, unless your participation is required under the law. Company shall reimburse you for reasonable out-of-pocket expenses incurred in connection with such cooperation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Protected Disclosures and Statements</u>. Nothing in this Agreement prohibits you from (a) responding truthfully to a lawfully issued subpoena, court order, or other binding request by a regulatory agency or governmental authority; (b) reporting possible violations of

U.S. federal law or regulation to any governmental agency or entity; (c) making any statement or engaging in any activity to the extent protected by the National Labor Relations Act; or

(d) making other disclosures that are protected under the whistleblower provisions of U.S. federal law or regulation. However, except as provided otherwise in this Agreement, you are not authorized to disclose any information covered by Company Group's attorney-client privilege or attorney work product or Company Group's trade secrets without prior written consent of the Executive Vice President and General Counsel of Warner Music Inc. Further, Company hereby informs you, and you hereby acknowledge, in accordance with 18 U.S.C. Section 1833(b), that you may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret where the disclosure (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to any attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Return of Property</u>. You agree to promptly return to Company by no later than the Separation Date, all property of Company in your possession, including: keys, identification cards, files, records, credit cards, electronic equipment, books and manuals issued to you by Company, and all confidential memoranda, notes, records, reports and other documents (and all copies thereof) relating to the business of Company which you possess or have under your control; provided that you may retain your personal files (i.e., your files not related to Company) and a copy of your address book.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Card Pay-Off Requirement</u>. You hereby represent and agree that any outstanding balances on corporate credit cards provided to you by Company have been paid in full or will be fully paid by you prior to the due date specified by the credit card provider. Company reserves the right to cease payment of the Separation Benefits under Paragraph 2 if your corporate credit card balance is not paid off in full within seven (7) days of the due date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Representations and Effective Date</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)<u>Consideration Period</u>. You understand that this Agreement is a legally binding document under which you are giving up certain rights, including any rights you have or may have under the Age Discrimination in Employment Act of 1967 and the Older Workers Benefit Protection Act of 1990 arising from your employment with Company, the termination of that employment or any other dealings of any kind between you and Company Group as of the date you sign this Agreement and as of the date you sign the Re-affirmation unless you have revoked this Agreement or the Re-affirmation pursuant to Paragraph 11(b), in consideration for the Severance and/or other Separation Benefits specified in Paragraph 2 and Company's release of claims against you pursuant to Paragraph 4(b). You acknowledge that you have been advised to discuss this Agreement and the Re-affirmation with an attorney and other professional persons unrelated to Company before you sign it, and that you have been given the time necessary to seek such advice and counsel. You have had at least twenty-one (21) days to consider this Agreement and the Re-affirmation. You also agree that the twenty-one (21)-day Consideration Period will not restart if changes, material or immaterial, are made to this Agreement or the Re- affirmation, and you waive any right you might have to restart the running of the twenty-one (21)-day Consideration Period. You acknowledge that you have read this Agreement and the Re- affirmation and that you have signed this Agreement and agree to the form of the Re-affirmation freely and voluntarily, with full knowledge of all material facts.

&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>Revocation Period</u>. You understand you may revoke this Agreement within seven (7) days of its execution, by notifying Company in writing of your desire to revoke this Agreement. If you revoke this Agreement, this Agreement will have no legal effect. Any revocation within this period must be submitted, in writing, to Executive Vice President and General Counsel, Warner Music Inc., and must state: "I hereby revoke my acceptance of our Separation Agreement and Release." The revocation must be either: (i) personally delivered to Executive Vice President and General Counsel, Warner Music Inc., 1633 Broadway, New York, NY 10019, within seven (7) days after you sign this Agreement; (ii) mailed to Executive Vice

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

President and General Counsel, at the address specified above by First Class United States mail and postmarked within seven (7) days after you sign this Agreement; or (iii) delivered to Executive Vice President and General Counsel, at the address specified above through a reputable overnight service with documented evidence that it was sent within seven (7) days after you signed this Agreement. The provisions of this Agreement, including any obligation of Company to provide payment or the Separation Benefits under Paragraph 2, are not binding until eight (8) days after the execution of both this Agreement and the Re-affirmation by you (and provided you have not revoked your acceptance pursuant to this Paragraph). All references to the Agreement in this Paragraph 11(b) shall apply with equal force and effect to the Re-affirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Complete Agreement</u>. This Agreement reflects the final and complete agreement between you and Company with respect to the subjects addressed by it, and, effective as of the date this Agreement is executed and nonrevocable by you, shall amend the Employment Agreement. As of the Separation Date, this Agreement (for purposes of the remainder of this Paragraph, together with the Re-affirmation, this "Agreement") shall supersede any and all prior agreements between you and Company, excluding the Award Agreements and the Clawback Policies but shall supersede the Employment Agreement as amended hereby. No modification or waiver of the terms of this Agreement will be valid unless made in writing and signed by an officer of Company and you. This Agreement may be executed in two or more counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission or by email or other electronic transmission method, and signatures created or transmitted by electronic means, including DocuSign (or any other signature complying with the federal ESIGN Act of 2000 or any applicable Uniform Electronic Transactions Act or Electronic Signatures and Records Act), PDF or JPEG, shall constitute original signatures, shall be deemed to have been duly and validly created and delivered, and shall be valid and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Severability, Definitions and Interpretations</u>. If any provision of this Agreement is ruled invalid, that will not affect any other provisions of this Agreement that can be given effect without the invalid provision. The provisions of this Agreement are severable. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. The words

(a) "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation," and (b) "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Choice of Law and Jury Trial Waiver</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)<u>Choice of Law</u>. This Agreement will be governed by and construed according to the laws of the State of New York without regard to any choice of law provisions. Exclusive jurisdiction of any dispute, action, proceeding or claim arising out of or relating to this Agreement shall lie in the state or federal courts in the State of New York, located in New York County.

&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>JURY TRIAL WAIVER</u>. IN THE UNLIKELY EVENT THAT DIFFERENCES ARISE BETWEEN THE PARTIES RELATED TO OR ARISING FROM THIS AGREEMENT THAT ARE NOT RESOLVED BY MUTUAL AGREEMENT, TO

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

FACILITATE A JUDICIAL RESOLUTION AND SAVE TIME AND EXPENSE OF BOTH PARTIES, COMPANY AND YOU AGREE NOT TO DEMAND A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Claims Not Released</u>. You are not waiving any rights you may have to: (a) your own vested accrued employee benefits under any health, welfare or retirement benefit plans of Company as of the Separation Date; (b) benefits and/or the right to seek benefits under applicable workers' compensation and/or unemployment compensation statutes; (c) pursue claims which by law cannot be waived by signing this Agreement; (d) enforce this Agreement;

(e) any Award Agreements outstanding as of the Separation Date and any equity in the Company or WMG Corp. owned by you; (f) seek indemnification from Company under Company's governing documents; and/or (g) challenge the validity of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Government Agencies</u>. Nothing in this Agreement prohibits or prevents you from filing a charge or communicating with, providing documents or information to, or participating, testifying or assisting in any investigation, hearing or other proceeding before, any federal, state or local government agency or regulatory authority, including the EEOC, NLRB, OSHA, SEC, and any applicable state or local civil rights agency. This Agreement does not limit your right to receive an award or bounty for information provided to any governmental agencies, including under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Any non- disclosure, confidentiality or waiver provision in this Agreement does not prohibit you from initiating communications directly with, responding to any inquiry from, or providing testimony before, any self-regulatory organization or state or federal regulatory authority, regarding Company, your employment, this Agreement or its underlying facts or circumstances. Any cooperation provision in this Agreement does not require you to contact Company regarding the subject matter of any such communications. By signing this Agreement, however, you waive the right to receive damages or monetary recovery from any such charge you may file or which is filed on your behalf, but it will not limit your right to receive an incentive award authorized under federal or state statute or regulation for information provided to any federal or state regulatory, government or law enforcement agencies, if applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Collective/Class Action Waiver</u>. If any claim is not subject to release, to the extent permitted by law, you waive any right or ability to be a class or collective action representative or to otherwise participate in any putative or certified class, collective or multi- party action or proceeding based on such a claim in which Company or any of its affiliates is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Non-Solicitation</u>. While you are employed by Company and for a period of one year thereafter, you shall not, without the prior written consent of Company, directly or indirectly, as an employee, agent, consultant, partner, joint venturer, owner, officer, director, member of any other firm, partnership, corporation or other entity, or in any other capacity: (a) solicit, negotiate with, induce or encourage any recording artist (including a duo or a group), publisher or songwriter who at the time is, or who within the one-year prior period was, either directly or through a furnishing entity, under contract to Company or any affiliate of Company or a label distributed by Company or an affiliate of Company, to end its relationship with Company, Company affiliate or label, to violate any provision of his or her contract or to enter into an exclusive recording or music publishing agreement with any other party or (b) solicit, negotiate

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

with, induce or encourage any individual who at the time is, or who within the six-month prior period was, an employee of Company or any Company affiliate in the United States to leave his or her employment or to commence employment with any other party; provided, however, that general solicitations or advertisements of employment that are not specifically directed at employees of Company or Company's affiliates shall not be deemed a violation of this clause (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.<u>Remedies for Breach and Clawback and Forfeiture of Incentive Compensation</u>. You acknowledge that your violation of any of the covenants contained in this Agreement may cause irreparable damage to Company in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate. Accordingly, you agree that in addition to any other damages it is able to show and without limiting any rights of WMG Corp. pursuant to its Clawback and Forfeiture Policy and its Dodd-Frank Clawback Policy (collectively, the "Clawback Policies") to seek recoupment of any Incentive Compensation (as defined in the Clawback Policies) paid to you, in the event of your violation of Paragraph 5(g) or Paragraph 18 of this Agreement or in the event that Company determines at any time after the execution in full of this Agreement, as determined solely by Company in good faith, that during your employment you engaged in any act or omission that constitutes Cause as defined in the Employment Agreement, Company shall be entitled (without the necessity of showing economic loss or other actual damage but with written notice to you of the reason for such determination and, in the case where the Cause for termination is susceptible of cure as determined solely by Company in good faith and subject to an opportunity for you to cure such Cause to the reasonable satisfaction of Company within the ten (10) business day period after the date of written notice to you) to cease payment of the Severance and all other Separation Benefits under Paragraph 2 to the extent not previously paid or provided and to require your prompt return of all or any portion of such compensation and the value of the Separation Benefits previously paid or provided. In addition to the foregoing, Company shall be entitled to specific performance and other injunctive relief (including temporary restraining orders, preliminary injunctions and permanent injunctions) in any court of competent jurisdiction for your actual or threatened breach of any of the covenants set forth in this Agreement. The period during which any such covenant applies shall be deemed automatically extended by any period during which you are in violation of the provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.<u>Withholding</u>. All payments made to you hereunder shall be subject to applicable withholding, social security taxes and other ordinary and customary payroll deductions, as applicable, including medical and other insurance premiums.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.<u>Section 409A</u>. This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (including the regulations and guidance promulgated thereunder, "Section 409A") and will be interpreted in a manner intended to comply with Section 409A. Amounts payable under this Agreement shall be deemed not to be a "deferral of compensation" subject to Section 409A to the extent provided in the exceptions set forth in Treas. Reg. Section 1.409A-1(b)(4) ("short-term deferrals") and Treas. Reg. Section 1.409A- 1(b)(9) ("separation pay plans") and other applicable provisions of Treas. Reg. Section 1.409A-1 through A-6. References under this Agreement to a termination of your employment shall be deemed to refer to the date upon which you have experienced a "separation from service" within the meaning of Section 409A. Notwithstanding anything herein to the contrary, (a) if at the time

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

of your separation from service with Company you are a "Specified Employee" as defined in the WMG Corp. Section 409A Specified Employee Policy as then in effect, payment of any "nonqualified deferred compensation" amounts (within the meaning of Section 409A and after taking into account all exclusions applicable to such payments under Section 409A) required to be made to you upon or as a result of your separation from service shall be delayed (without any reduction in such payments or benefits ultimately paid or provided to you) to the extent necessary to comply with and avoid the imposition of taxes, interest and penalties under Section 409A until the first payroll following the six-month anniversary of your separation from service, at which point all payments delayed pursuant to this Paragraph shall be paid to you in a lump sum and (b) if any other payments of money or other benefits due to you hereunder could cause the imposition of any accelerated or additional taxes, interest or penalties under Section 409A, such payments or other benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by Company, that does not cause such an accelerated or additional tax. To the extent any reimbursements or in-kind benefits due to you under this Agreement constitute "deferred compensation" under Section 409A, any such reimbursements or in-kind benefits shall be paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Each payment made under this Agreement shall be designated as a "separate payment" within the meaning of Section 409A. For the avoidance of doubt, any continued health benefit plan coverage that you are entitled to receive following your termination of employment is expected to be exempt from Section 409A and, as such, shall not be subject to delay pursuant to this Paragraph.

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

Date:

05 May 2025

![image_2.jpg](image_2.jpg)

![image_3.jpg](image_3.jpg)Bryan Castellani

WARNER MUSIC INC.

Date:

05 May 2025

![image_2.jpg](image_2.jpg)

By: Name:

![image_5.jpg](image_5.jpg)

![image_6.jpg](image_6.jpg)Paul Robinson

![image_7.jpg](image_7.jpg)

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Docusign Envelope ID: 031E6706-69D9-49F4-A61E-F3CF85D6ECD4

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Docusign Envelope ID: BE709348-B1E4-4BEE-BD9D-2D5BEF2DFF7F

**<u>Exhibit A</u>**

<u>Re-affirmation of Waiver and Release</u>

<u>&nbsp;&nbsp;&nbsp;&nbsp;</u> <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>, 2025

To: Warner Music Inc. ("Company")

Reference is made to that certain Separation Agreement and Release, dated as of May <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>, 2025 (the "Separation Agreement"), previously entered into by and between Bryan Castellani and Company. Capitalized terms used but not defined in this Re-affirmation of Waiver and Release shall the meanings ascribed to such terms in the Separation Agreement.

As provided in the Separation Agreement, effective as of the date hereof, Bryan Castellani hereby restates and re-affirms and again provides Company with the waiver and release of claims and acknowledgements set forth in Paragraph 4(a) and Paragraph 5 of the Separation Agreement.

Sincerely,

![image_8.jpg](image_8.jpg)

Bryan Castellani

12

## Exhibit 10.2

Exhibit 10.2

WARNER MUSIC INC.

1633 Broadway

New York, NY 10019

April 10, 2025

Armin Zerza

Address on file with Company

Dear Armin:

This letter, when signed by you and countersigned by Warner Music Inc. ("Company"), shall, subject to your successful completion of the employment application process (including completion of a criminal background investigation and reference checks) in accordance with Company's policy to the reasonable satisfaction of Company, constitute our agreement (the "Agreement") with respect to your employment with Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Position</u>: As of the Start Date (as defined below), you shall serve as Executive Vice President & Chief Financial Officer, Warner Music Group.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Term</u>: The term of this Agreement (the "Term") shall commence on May 5, 2025 (the "Start Date") and shall end on May 12, 2029. No later than six (6) months prior to the end of the Term, you and Company agree to discuss in good faith whether you and Company intend to extend your employment beyond the expiration of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Compensation</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)<u>Salary</u>: During the Term, Company shall pay you a salary at the rate of $1,200,000 per annum.

&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>Annual Discretionary Bonus</u>: With respect to each fiscal year of the Term commencing with the fiscal year that commenced October 1, 2024 and ends September 30, 2025 (i.e., the 2025 fiscal year), Company shall consider granting to you an annual bonus payable in accordance with Company policy. Your bonus target for each fiscal year of the Term shall be $1,800,000 (prorated, if applicable, based on the length of your employment with Company during any such fiscal year); provided, that the amount of any annual bonus awarded to you may be higher or lower and shall be determined by Company in its sole discretion based on factors including the strength of your performance and the performance of Company and of Warner Music Group.

&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)<u>Equity Award</u>: During the Term and so long as the common stock of Warner Music Group Corp. (including any successor or assignee, "WMG Corp.") is publicly traded, you shall be eligible to receive, in the sole discretion of the Administrator of WMG Corp.'s 2020 Omnibus Incentive Plan (as may be amended from time to time, the "Plan"), up to four fiscal year "Awards" as defined under, and to be granted to you pursuant to, the Plan. The aggregate annual pre-tax, grant date target value of any Awards granted to you in each fiscal year shall be $6,000,000, with the number of shares of WMG Corp.'s Class A common stock covered by such Award(s) determined by the closing share price of WMG Corp.'s Class A Common Stock on a date or dates selected by the Administrator. The actual pre-tax grant date value of Award(s) granted to you in any fiscal year may be higher or lower than the target amount (except for the first award hereunder for the 2025 fiscal year which shall have a pre-tax, grant date value of $6,000,000) and will be determined by the Administrator in its sole discretion based on

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factors determined by the Administrator, which may include the strength of your performance and the performance of WMG Corp. The first Award hereunder shall be issued on or about the Start Date but no later than May 12, 2025 and any other annual Awards that you may be eligible to receive thereafter are expected to be granted on or about the anniversary of the initial grant date in 2026, 2027, and 2028, but no later than May 12, 2026, May 12, 2027, and May 12, 2028, respectively; provided that for purposes of the first Award Agreement (as defined below), the Start Date hereunder will be the Vesting Commencement Date (as defined therein). The terms and conditions of each Award, including calculation of grant date value, vesting requirements, active employment on the grant date and treatment of Awards upon termination of employment, shall be determined in the sole discretion of the Administrator and be subject to the Plan and an individual "Award Agreement" in such form as approved by the Administrator. The form of the Award Agreement for the first Award hereunder is available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001319161/000131916124000010/wmg-20231231.htm; provided, for the avoidance of doubt, that such form is subject to change in the sole discretion of the Administrator for any subsequent Awards that may be granted to you.

&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)<u>One-Time Payment</u>: In lieu of any assistance with your expenses in connection with your relocation from the greater Los Angeles metropolitan area to the greater New York metropolitan area in accordance with Paragraph 6, Company shall pay you a one-time payment in the amount of $1,000,000, payable in a lump sum as soon as practicable after the Start Date but in no event later than May 16, 2025.

&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)<u>One-Time Option Award</u>: As soon as practicable after the Start Date but in no event later than May 12, 2025, you shall be eligible to receive a one-time Award of a number of Options (as defined in the Plan) ("Options") having a grant date pre-tax fair value of $4,000,000 determined in accordance with Black-Scholes. The exercise price for each Option shall be the closing share price of Company's Class A Common Stock on the grant date (or, if not a trading day, the most recent trading day). The Options shall vest in equal annual installments over four years following the grant date, subject to your continued employment with Company. Other terms and conditions of the Options shall be consistent with the form of Option Award Agreement set forth on <u>Exhibit A</u> hereto (the "Option 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;(f)<u>Payment of Compensation</u>: Compensation accruing to you during the Term shall be payable in accordance with Company's regular payroll practices for employees at your level. You shall not be entitled to additional compensation for performing any services for Company's subsidiaries or affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Exclusivity</u>: Your employment with Company shall be full-time and exclusive. During the Term you shall not render any services for others, or for your own account, in the field of entertainment or otherwise; provided, however, that (a) you shall not be precluded from personally, and for your own account as a passive investor, investing or trading in real estate, stocks, bonds, securities, commodities or other forms of investment for your own benefit, except that your rights hereafter to invest in any business or enterprise principally devoted to any activity which, at the time of such investment, is competitive to any business or enterprise of Company or the subsidiaries or affiliates thereof, shall be limited to the purchase of not more than two percent (2%) of the issued and outstanding stock or other securities of a corporation listed on a national securities exchange or traded in the over-the-counter market, and (b) to the extent such activities do not materially interfere with the performance of your duties hereunder, you shall not be precluded from (i) participating in or rendering services to charitable organizations, including serving on the board of directors of charitable organizations to the extent they are approved in advance by the board of directors of WMG Corp., and (ii) serving on the board and investment committee of Sage Hill High School in Newport Beach, California;

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provided that you shall remain subject to the confidentiality obligations in Paragraph 12 at all times while engaging in any such activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Reporting</u>: You shall at all times report directly to and work under the supervision and direction of the Chief Executive Officer of Warner Music Group (currently, Robert Kyncl). You shall perform such duties consistent with your position as you shall reasonably be directed to perform by such senior executive officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Place of Employment; Relocation</u>: Initially, the greater Los Angeles metropolitan area; and effective as of the date you relocate which shall be no later than May 31, 2026, the greater New York metropolitan area; provided that (a) you agree to travel to the greater New York metropolitan area as required by Company until you relocate your residence to the greater New York metropolitan area; and (b) you agree to relocate your residence to the greater New York metropolitan area at your own expense by no later than May 31, 2026. You shall render services in the offices designated by Company at such location. You also agree to travel on temporary trips to such other place or places as may be required from time to time to perform your duties hereunder. For the avoidance of doubt, Company agrees to pay for the cost of your transportation only (i.e., airfare and car service, and excluding lodging and any other travel-related expenses) between the greater Los Angeles metropolitan area and the greater New York metropolitan area until no later than May 31, 2026, subject to and in accordance with Company's T&E policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Travel and Entertainment Expenses</u>: Except as otherwise set forth in Paragraph 6, Company shall pay for reasonable expenses actually incurred, or reimburse you for reasonable expenses paid, by you during the Term in the performance of your services hereunder in accordance with Company's policy for employees at your level upon presentation of expense statements or such other supporting information as Company may customarily require. You shall be entitled to travel in accordance with Company's policies for employees at your level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Benefits</u>: While you are employed hereunder, you shall be entitled to all fringe benefits generally accorded to employees of Company at your level from time to time, including medical health and accident, group insurance, 401(k) and other benefits, provided that you are eligible under the general provisions of any applicable plan or program and Company continues to maintain such plan or program during the Term. You shall also be entitled to time off (with pay) during each calendar year of the Term in accordance with Company's time off policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Disability/Death</u>: If you become physically or mentally incapacitated from performing your duties hereunder, and such incapacity continues for a period of six (6) consecutive months or more or for shorter periods aggregating six (6) months or more in any twelve (12)-month period (a "Disability"), Company shall have the right (before the termination of such incapacity), at its option, to terminate this Agreement with no consequence (other than the payments which may be due to you hereunder if your employment with Company subsequently terminates), except if such termination would be prohibited by law. Upon termination of this Agreement pursuant to the foregoing, you shall continue to remain employed by Company as an at-will employee. In the event your at-will employment with Company subsequently terminates after a Disability, (a) Company shall pay to you the Basic Termination Payments (as defined below) and (b) in the event such termination is due to a termination by Company other than for Cause (as defined below) or resignation by you for Good Reason (as defined below), and subject to your execution of a Release (as defined below), Company shall grant to you a pro rata portion of an annual bonus with respect to the portion of the fiscal year during which you rendered services to Company prior to the Separation Date (as defined below), the amount of which, if any, shall be determined in Company's sole discretion taking into consideration the target bonus amount stated in Paragraph 3(b), your performance and

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Company's performance, and shall be paid to you when bonuses with respect to such fiscal year are paid to Company employees generally (a "Pro Rata Bonus"). In the event of your death during the Term, this Agreement shall automatically terminate except that Company shall pay to your estate the Basic Termination Payments and a Pro Rata Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Termination by Company for Cause; Termination by You for Good Reason</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)<u>Termination by Company for Cause</u>: Company may at any time during the Term, by written notice, terminate your employment and this Agreement for Cause (as defined below), such Cause to be specified in the notice of termination. The following acts shall constitute "Cause" hereunder: (i) any willful or intentional act or omission having the effect, which effect is reasonably foreseeable, of injuring, to an extent that is not de minimis, the reputation, business, business relationships or employment relationships of Company or its affiliates; (ii) conviction of, or plea of <u>nolo contendere</u> to, a misdemeanor involving theft, fraud, forgery, embezzlement or the sale or possession of illicit substances or a felony, unless prohibited by applicable law; (iii) breach of any material representation, warranty or covenant contained in this Agreement; (iv) violation of Company's policies, including those described in Paragraph 17(b), as determined by Company in good faith; and (v) repeated or continuous failure, neglect or refusal to perform your material duties hereunder. Notice of termination given to you by Company shall specify the reason(s) for such termination. In the case where a cause for termination described in clause (iii), (iv) or (v) above is susceptible of cure (as determined by Company), and such notice of termination is the first notice of termination given to you for such reason, if you fail to cure such Cause for termination to the reasonable satisfaction of Company within ten (10) business days after the date of such notice, termination shall be effective upon the expiration of such ten-business-day period, and if you cure such Cause within such ten-business-day period, such notice of termination shall be ineffective. In all other cases, notice of termination shall be effective on the date thereof. In the event of the termination of your employment pursuant to this Paragraph 10(a), this Agreement shall automatically terminate except that Company shall pay to you the Basic Termination 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;(b)<u>Termination by You for Good Reason</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)For purposes of this Paragraph 10(b), Company shall be in breach of its obligations to you hereunder if there shall have occurred any of the following events (each such event being referred to as a "Good Reason"): (A) a material reduction in your title, duties or responsibilities shall have been put into effect; (B) Company fails to pay to you any monies due hereunder in accordance with applicable law; (C) Company requires you to relocate your primary residence outside the greater Los Angeles metropolitan area before May 31, 2026 or Company requires you to relocate your primary residence outside the greater New York metropolitan area on or after May 31, 2026 in order to perform your duties to Company; (D) you shall have been required to report to anyone other than as provided in Paragraph 5; or (E) Company assigns its rights and obligations under this Agreement in contravention of the provisions of Paragraph 17(g).<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)You may exercise your right to terminate your employment and this Agreement for Good Reason pursuant to this Paragraph 10(b) by notice given to Company in writing specifying the Good Reason for termination within sixty (60) days after the occurrence of any such event constituting Good Reason, otherwise your right to terminate your employment and this Agreement by reason of the occurrence of such event shall expire and shall be deemed to have permanently lapsed. Any such termination in compliance with the provisions of this Paragraph 10(b) shall be effective thirty (30) days after the date of your written notice of termination, except that if Company shall cure such specified Good Reason within such thirty-day period, you shall not be entitled to terminate your employment and this Agreement by reason of such specified Good Reason and the notice of termination given by you shall be null and void and of no effect whatsoever.<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Consequences of Termination of Employment</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)In the event of a Special Termination (as defined below), your sole remedy shall be that, subject to your execution of a Release, Company shall pay to you the Special Termination Severance (as defined below). In the event of a Qualifying Non-renewal (as defined below), your sole remedy shall be that, subject to your execution of a Release, Company shall pay to you the Policy Severance (as defined below) and a Pro Rata Bonus. In addition, in the event of a Special Termination or Qualifying Non-renewal, Company shall pay to you the Basic Termination Payments. Special Termination Severance and Policy Severance are each sometimes herein referred to as the "Severance." Solely in the event that upon the expiration of the Term hereunder, you elect to resign from your employment with Company for any reason (and such resignation is not as a result of a Qualifying Non-Renewal or a Special Termination), Company agrees in good faith to seek approval from the Compensation Committee of the Board to deem such resignation a "Qualifying Retirement" (as defined in the applicable Award Agreements) for purposes of any outstanding Awards; provided, that whether or not the Compensation Committee determines to deem such resignation a "Qualifying Retirement" shall be in the sole discretion of the Compensation Committee.

&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 "Basic Termination Payments" shall mean any accrued but unpaid salary, any unreimbursed expenses pursuant to Paragraph 7, plus any accrued and vested but unpaid benefits in accordance with Paragraph 8, in each case to the date on which your employment terminates (the "Separation Date"). Basic Termination Payments shall be paid to you in accordance with Company policy or in accordance with the terms of the applicable plan.

&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)A "Release" shall mean a mutual, irrevocable release agreement in Company's standard form, which you and your personal attorney shall have a right to review, negotiate and return during the time period set forth therein and which shall include (i) a release by you of Company from any and all claims and (ii) a release by Company of you from claims which Company may have relating to your employment with Company and the termination of such employment.

&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)A "Special Termination" shall have occurred in the event that (i) Company terminates your employment hereunder other than pursuant to Paragraph 9 or 10(a), or (ii) you terminate your employment pursuant to Paragraph 10(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;(e)"Special Termination Severance" shall mean (i) solely in the event a Special Termination that occurs during the twelve (12) month period immediately following a Change in Control (as defined in the Plan), an amount equal to $9,000,000,

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and (ii) with respect to any other Special Termination, (A) an amount equal to eighteen (18) months' salary at the per annum salary rate as in effect hereunder on the Separation Date and (B) an additional payment of $1,800,000 as a bonus for the fiscal year in which the Separation Date occurs; provided, that such bonus shall be paid to you when bonuses with respect to such fiscal year are paid to Company employees generally.

&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 "Qualifying Non-renewal" shall have occurred in the event that, at the end of the Term: (i) Company declines to offer you continued employment with Company or one of its affiliates or (ii) Company offers you continued employment with Company or one of its affiliates at an annual salary rate of less than $1,200,000, an annual bonus target of less than $1,800,000 and an annual Award target of less than $7,000,000 (each, a "Compensation Component"), but with each Compensation Component adjusted based on any increase in the Consumer Price Index for All Urban Consumers, U.S. City Average, as published by the U.S. Bureau of Labor Statistics (the "CPI") over the Term (each, an "Adjusted Compensation Component"), and you decline such offer and elect to terminate your employment with Company. For purposes of calculating the amount of each Adjusted Compensation Component, the base CPI shall be the CPI for the month in which the Term starts (the "Base CPI"), and if the CPI for the month in which the Term expires exceeds the Base CPI, the amount of each Adjusted Compensation Component shall equal the amount of the applicable Compensation Component increased by the percentage change in the CPI, rounded to the nearest tenth of a percent.

&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)"Policy Severance" shall mean the amount of severance pay that would have been payable to you under Company policy as in effect on the Separation Date had you not been subject to an employment agreement with Company.

&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 Severance payable under Paragraph 11(e) or (g) (excluding any bonus payments) shall be paid in the form of salary continuation in accordance with Company's regular payroll practices as in effect from time to time, at your per annum salary rate as in effect on the Separation Date; provided that if the total amount of Severance exceeds your annual salary rate, payments shall be made at a per annum salary rate equal to the Severance amount (such that Severance shall be payable over a 52-week period). Severance payments shall commence in the next possible pay cycle following the later of the Separation Date and the date your Release is effective and nonrevocable (the "Release Effective Date"); provided if your Release consideration period (together with the revocation period, if any) spans two calendar years, then Severance payments shall not commence until the second calendar year even if the Release Effective Date occurs in the earlier year.

&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 you do not execute and deliver a Release within the time period set forth therein in connection with a Special Termination or a Qualifying Non-renewal (which time period shall not be less than twenty-one (21) days), Company shall only be obligated to pay to you the Basic Termination Payments. You shall have no duty to mitigate or seek substitute employment, and Company shall have no right of offset against any amounts payable to you under this Paragraph 11 with respect to any compensation or fees received by you from any employment obtained or consultancy arrangement entered into by you.

&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)During the period commencing immediately following the Separation Date and through the last day of the calendar month in which the Separation Date occurs (such period, the "Benefits Period"), Company shall continue to provide you and your eligible family members with medical health insurance coverage, including dental and vision insurance coverage, under the group insurance plans maintained by Company ("Benefits Coverage") in accordance with the terms of the applicable plans and to the extent that you had elected such coverage prior to the Separation Date. Following the

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Benefits Period, you and/or your eligible family members may have the right, in accordance with and subject to the Consolidated Omnibus Budget Reconciliation Act, as amended ("COBRA"), to elect to continue Benefits Coverage for such period of time as required under COBRA and at your expense.

&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)In the event you resign from your employment hereunder prior to the expiration of the Term other than for Good Reason, such resignation is a material breach of this Agreement and, without limitation of other rights or remedies available to Company, Company shall have no further obligations to you under this Agreement or otherwise, except for the Basic Termination 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;(l)For the avoidance of doubt, any Awards granted to you under the Plan shall be governed by the terms of the Plan and the applicable Award Agreements, and this Agreement is not intended to and does not waive or limit any of your obligations to Company and its affiliates or any of Company's and its affiliates' rights under the Award Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Confidential Matters</u>: You shall keep secret all confidential matters of Company and its affiliates (for purposes of this Paragraph, collectively, "Company"), and shall not disclose them to anyone outside of Company, either during or after your employment with Company, except (a) with Company's prior written consent; (b) as required by law or judicial process or as permitted by law for the purpose of reporting a violation of law; (c) to your professional advisors to the extent reasonable and necessary; or (d) if such information is widely known to the general public other than as a result of a breach by you of your obligations hereunder. However, nothing in this Agreement prevents you from discussing or disclosing information about unlawful acts in the workplace, such as harassment or discrimination or any other conduct that you have reason to believe is unlawful. Company hereby informs you, and you hereby acknowledge, in accordance with 18 U.S.C. Section 1833(b), that you may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret where the disclosure (i) is made (A) in confidence to a federal, state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Furthermore, nothing in this Agreement prevents you from making any statement or engaging in any activity to the extent protected by the National Labor Relations Act.

You shall deliver promptly to Company upon termination of your employment, or at any time as Company may request, all confidential memoranda, notes, records, reports and other documents (and all copies thereof) relating to the business of Company which you may then possess or have under your control; provided that you may retain your personal files (i.e., your files not related to Company) and a copy of your address book.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Non-Solicitation</u>: While you are employed by Company and for a period of one (1) year thereafter, you shall not, without the prior written consent of Company, directly or indirectly, as an employee, agent, consultant, partner, joint venturer, owner, officer, director, member of any other firm, partnership, corporation or other entity, or in any other capacity: (a) solicit, negotiate with, induce or encourage any recording artist (including a duo or a group), publisher or songwriter who at the time is, or who within the one-year period prior to such time was, either directly or through a furnishing entity, under contract to Company, an affiliate, subsidiary or parent company of Company or a label distributed by Company (for purposes of this Paragraph, collectively, "Company"), to end its relationship with Company or label, to violate any provision of his or her contract or to enter into an exclusive recording or music publishing agreement with any other party or (b) solicit, negotiate with, induce or encourage any individual who at the

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time is, or who within the six-month period prior to such time was, an employee of Company in the United States to leave his or her employment or to commence employment with any other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.<u>Notices</u>: All notices, requests, consents and other communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given if delivered personally or sent by prepaid courier, or mailed first-class, postage prepaid, by registered or certified mail, return receipt requested or via email as follows:

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| | |
|:---|:---|
| TO YOU: | TO COMPANY: |
| To your address on file with Company | Warner Music Inc.<br>1633 Broadway<br>New York, NY 10019<br>Attn: General Counsel |

---

Either you or Company may change the address to which notices are to be sent by giving written notice of such change of address to the other in the manner herein provided for giving notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.<u>Indemnity</u>: Company agrees to indemnify you against expenses (including final judgments and amounts paid in settlement to which Company has consented in writing, which consent shall not be unreasonably withheld) in connection with third-party litigation against you arising out of the performance of your duties hereunder; provided that (a) the foregoing indemnity shall only apply to matters for which you perform your duties for Company in good faith and in a manner you reasonably believe to be in or not opposed to the best interests of Company and not in contravention of the instructions of any senior officer of Company or WMG Corp., and (b) you shall have provided Company with prompt notice of the commencement of any such litigation. Company will provide defense counsel selected and paid for by Company. You agree to cooperate in connection with any such litigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.<u>Miscellaneous</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Representations and Warranties</u>: You represent and warrant as follows: (i) you are free to enter into this Agreement and to perform each of the terms and covenants hereunder; (ii) you are not restricted or prohibited, contractually or otherwise, from entering into and performing under this Agreement and that your execution of and performance under this Agreement is not a violation or breach of any other agreement; and (iii) you have not disclosed to Company or any officer or affiliate of Company any proprietary information or trade secrets of any former employer or of your current employer (if applicable). You represent and warrant that your current employer has agreed to release you from any contractual commitments (other than with respect to use of confidential information) effective no later than the first day of the Term. You further covenant that you shall not enter into any other agreements (including an extension or

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amendment of any agreement) that would restrict or prohibit you from entering into or performing 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;(b)<u>Company Policies</u>: You acknowledge and agree that while you are employed by Company you shall comply with Company's Code of Conduct (or any successor document) and other corporate policies including the requirements of Company's compliance and ethics program, each as in effect from time to time, of which you are made aware.

&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)<u>Remedies</u>: You acknowledge that services to be rendered by you under this Agreement are of a special, unique and intellectual character which gives them peculiar value, and that a breach or threatened breach of any provision of this Agreement (particularly, but without limitation, the provisions of Paragraphs 4, 12, 13 and 14), will cause Company immediate irreparable injury and damage which cannot be reasonably or adequately compensated in damages in an action at law. Accordingly, without limiting any right or remedy which Company may have in such event, you specifically agree that Company shall be entitled to seek injunctive relief to enforce and protect its rights under this Agreement. The provisions of this Paragraph 17(c) shall not be construed as a waiver by Company of any rights which Company may have to damages or any other remedy or by you as a waiver by you of any rights which you may have to offer fact-based defenses to any request made by Company for injunctive relief.

&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)<u>Complete Agreement</u>: This Agreement sets forth the entire agreement and understanding of the parties hereto, and supersedes and terminates any and all prior agreements, arrangements and understandings. No representation, promise or inducement has been made by either party that is not embodied in this Agreement, and neither party shall be bound by or liable for any alleged representation, promise or inducement not herein set forth.

&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)<u>Execution in Counterparts</u>: This Agreement may be executed in two or more counterparts, each of which when executed shall be deemed to be an original but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission or by email or other electronic transmission method, and signatures created or transmitted by electronic means, including DocuSign (or any other signature complying with the federal ESIGN Act of 2000 or any applicable Uniform Electronic Transactions Act or Electronic Signatures and Records Act), PDF or JPEG, shall constitute original signatures, shall be deemed to have been duly and validly created and delivered, and shall be valid and binding for all 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;(f)<u>Severability</u>: If any provision of this Agreement or the application thereof is held to be wholly invalid, such invalidity shall not affect any other provisions or the application of any provision of this Agreement that can be given effect without the invalid provisions or application, and to this end the provisions of this Agreement are hereby declared to be severable.

&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)<u>Assignment</u>: The provisions of this Agreement shall inure to the benefit of the parties hereto, their heirs, legal representatives, successors and permitted assigns. This Agreement, and your rights and obligations hereunder, may not be assigned by you. By operation of law or otherwise, Company may assign its rights, together with its obligations, hereunder to any direct or indirect subsidiary of Warner Music Group Corp. with written notice to you, or in connection with any sale, transfer or other disposition of all or a substantial portion of the stock or assets of Company.

&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)<u>Amendments</u>: This Agreement may be amended, modified, superseded, canceled, renewed or extended, and the terms or covenants hereof may be waived, only

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by a written instrument executed by both of the parties hereto, or in the case of a waiver, by the party waiving compliance. The failure of either party at any time or times to require performance of any provision hereof shall in no manner affect the right at a later time to enforce the same. No waiver by either party of the breach of any term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such breach, or a waiver of the breach of any other term or covenant contained in 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;(i)<u>Surviving Provisions</u>: Neither the continuation of employment nor any other conduct shall be deemed to imply a continuing obligation upon the expiration or termination of this Agreement. Upon the expiration of the Term, provided that a Special Termination or Qualifying Non-renewal has not occurred and that you have not otherwise been terminated or resigned from employment, your employment shall continue "at-will." Accordingly, upon such expiration of the Term, your employment with Company shall not be subject to a defined term, but rather, you may terminate your employment with Company at any time and for any reason and Company may terminate your employment at any time and for any reason; and in the event of such subsequent termination of your employment for any reason, the provisions of this Agreement relating to Special Termination Severance shall be of no force or effect. In the event of the expiration or termination of this Agreement for any reason, only the provisions of Paragraphs 12, 13, 14, 15, 16, 17 and 18 shall survive and all other provisions of this Agreement, including the provisions relating to Special Termination Severance, shall be of no further force or effect; provided, however, that (A) in the event this Agreement and your employment are terminated as a result of a Special Termination or Qualifying Non-renewal, the applicable payment provisions of Paragraph 11 shall also survive, and (B) in the event this Agreement and your employment are terminated by Company by reason of your death or Disability, the provisions of Paragraph 9 shall also survive. Nothing contained in this Agreement shall be construed to impose any obligation on Company to renew 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;(j)<u>Governing Law</u>: This Agreement shall be governed by and construed according to the laws of the State of New York as applicable to agreements executed in and to be wholly performed within such State. Exclusive jurisdiction of any dispute, action, proceeding or claim arising out of or relating to this Agreement shall lie in the state or federal courts in the State of New York, located in New York County.

&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)<u>JURY TRIAL WAIVER</u>: IN THE UNLIKELY EVENT THAT DIFFERENCES ARISE BETWEEN THE PARTIES RELATING TO OR ARISING FROM THIS AGREEMENT THAT ARE NOT RESOLVED BY MUTUAL AGREEMENT, COMPANY AND YOU AGREE NOT TO DEMAND A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM IN ORDER TO FACILITATE A JUDICIAL RESOLUTION AND SAVE TIME AND EXPENSE OF BOTH 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;(l)<u>Withholding and Taxes</u>: All payments made to you hereunder shall be subject to applicable withholding, social security taxes and other ordinary and customary payroll deductions, including medical and other insurance premiums.

&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)<u>Interpretation</u>: The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. The words (i) "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation," and (ii) "herein," "hereof" and "hereunder," and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.<u>Section 409A</u>: This Agreement is intended to comply with Section 409A of the Internal Revenue Code of 1986, as amended (including the regulations and guidance promulgated thereunder, "Section 409A") and shall be interpreted in a manner intended to comply with Section 409A. Amounts payable under this Agreement shall be deemed not to be a "deferral of compensation" subject to Section 409A to the extent provided in the exceptions set forth in Treas. Reg. Section 1.409A-1(b)(4) ("short-term deferrals") and Treas. Reg. Section 1.409A-1(b)(9) ("separation pay plans") and other applicable provisions of Treas. Reg. Section 1.409A-1 through A-6. References under this Agreement to a termination of your employment shall be deemed to refer to the date upon which you have experienced a "separation from service" within the meaning of Section 409A. Notwithstanding anything herein to the contrary, (a) if at the time of your separation from service with Company you are a "Specified Employee" as defined in the Warner Music Group Corp. Section 409A Specified Employee Policy as then in effect, payment of any "nonqualified deferred compensation" amounts (within the meaning of Section 409A and after taking into account all exclusions applicable to such payments under Section 409A) required to be made to you upon or as a result of your separation from service shall be delayed (without any reduction in such payments or benefits ultimately paid or provided to you) to the extent necessary to comply with and avoid the imposition of taxes, interest and penalties under Section 409A until the first payroll following the six-month anniversary of your separation from service, at which point all payments delayed pursuant to this Paragraph shall be paid to you in a lump sum and (b) if any other payments of money or other benefits due to you hereunder could cause the imposition of any accelerated or additional taxes, interest or penalties under Section 409A, such payments or other benefits shall be deferred if deferral shall make such payment or other benefits compliant under Section 409A, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner, determined by Company, that does not cause such an accelerated or additional tax. To the extent any reimbursements or in-kind benefits due to you under this Agreement constitute "deferred compensation" under Section 409A, any such reimbursements or in-kind benefits shall be paid to you in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Each payment made under this Agreement shall be designated as a "separate payment" within the meaning of Section 409A. For the avoidance of doubt, any continued health benefit plan coverage that you are entitled to receive following your termination of employment is expected to be exempt from Section 409A and, as such, shall not be subject to delay pursuant to this Paragraph.

[signature page follows]

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If the foregoing correctly sets forth our understanding, please sign below and return this Agreement to Company.

Very truly yours,

WARNER MUSIC INC.

By:&nbsp;&nbsp;&nbsp;&nbsp;_______________________

Name:&nbsp;&nbsp;&nbsp;&nbsp;_______________________

Accepted and Agreed:

_________________________

Armin Zerza

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<u>Exhibit A</u>

**Form of Option Agreement**

(see next page)

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![image_02.jpg](image_02.jpg)<br>

**NOTICE OF OPTION AWARD**

Warner Music Group Corp. (the "<u>Company</u>"), pursuant to its 2020 Omnibus Incentive Plan, as amended from time to time (the "<u>Plan</u>"), hereby awards to you an award of Options (the "<u>Options</u>") with respect to the number of shares of the Company's Class A common stock ("<u>Shares</u>") indicated below in this Notice of Option Award (the "<u>Notice</u>"). This award of Options is effective on the grant date indicated below and is subject to the terms set forth herein and in the Option Award Terms and Conditions attached hereto (the "<u>Terms and Conditions</u>") and the Plan, each of which is incorporated by reference.

---

| | |
|:---|:---|
| **Participant:** | **Armin Zerza** |
| **Grant Date:** | **[●]** |
| **Number of Options Granted:** | **[●]** |
| **Option Price:** | **[●]** |
| **Expiration Date:** | [10<sup>th</sup> Anniversary of Grant Date] |
| **Vesting Schedule:** | **The Options will vest in equal annual installments on each of the first four anniversaries of the Grant Date, subject to the Participant's continued employment with the Company or one or more of its Affiliates through each vesting date and subject further to continued or accelerated vesting in certain cases, all as specified in the attached Terms and Conditions.** |

---

Please review the Plan and the attached Terms and Conditions for important information about the Options. For your award to be effective, the Terms and Conditions must be electronically reviewed and accepted on the Fidelity NetBenefits website on or before [●]. If you have any questions regarding the Fidelity NetBenefits website and you are located in the U.S., you can call 1-800-544-9354, outside of the U.S., you can go to FIDELITY.COM/GLOBALCALL for dialing instructions. If you have general inquiries on your Options, please contact EmployeeEquity@wmg.com.

Attachments: &nbsp;&nbsp;&nbsp;&nbsp;Option Award Terms and Conditions

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**OPTION AWARD TERMS AND CONDITIONS (U.S.)**

This document contains the Terms and Conditions of the Options awarded by the Company to the Participant indicated in the Notice of Option Award to which this document is attached (the "<u>Notice</u>"), and constitutes a binding agreement by and between Warner Music Group Corp. (the "<u>Company</u>"), and the employee whose name is set forth on the Notice. Capitalized terms used but not defined herein shall have the respective meanings given to them in the Warner Music Group Corp. 2020 Omnibus Incentive Plan, as amended from time to time (the "<u>Plan</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;1.<u>Grant of Options</u>. The Company hereby evidences and confirms its grant to the individual whose name is set forth on the Notice (the "<u>Participant</u>"), effective as of the grant date set forth on the Notice (the "<u>Grant Date</u>"), of the number of Options to purchase Shares set forth on the Notice at the Option Price set forth on the Grant Notice (the "<u>Options</u>"). The Options are intended to be Non-Qualified Stock Options and not Incentive Stock Options. The Options are subject to the terms and conditions of the Plan, which are incorporated by reference herein.

&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.<u>Vesting</u>. Except as otherwise provided in this Section 2 or in the Plan or as approved by the Administrator, the Options shall vest in accordance with the terms of these Terms and Conditions (including the Notice and the Plan), as follows (the occurrence of each such event described in Section [2(a)](#i000b8f58467443799e9ddc38a3929951_7)-[(d)](#i000b8f58467443799e9ddc38a3929951_7), a "<u>Vesting Event</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 Options shall become vested on the earliest to occur of the (i) vesting dates set forth in the Notice (each, a "<u>Vesting Date</u>"), (ii) the Participant's death and (iii) the Participant's Disability, subject in each case to the Participant's continued employment with the Company or its Affiliate through such 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)upon the occurrence of a Change in Control, all then outstanding unvested Options shall be treated as provided in the Plan;

&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)if the Participant's employment terminates in a Special Termination prior to the Vesting Date, then (i) a pro rata portion of the Options shall become vested as of the date of such termination based on the portion of the vesting period that has elapsed as of such date and (ii) the balance of the Options shall remain outstanding and unvested and shall become vested on the applicable Vesting Date provided (A) the Participant has not violated Section [13(b)](#i000b8f58467443799e9ddc38a3929951_7) through the Vesting Date and (B) the Participant has provided annual certification of such ongoing compliance with Section [13(b)](#i000b8f58467443799e9ddc38a3929951_7) in writing to the Company on each anniversary of the Grant Date (if any) that occurs following such Special Termination and prior to the Vesting Date, and a final certification to such effect prior to (but no more than 90 days prior to) the Vesting Date; provided, that, if such termination occurs within one year following a Change in Control, the Options shall immediately vest in full upon such termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)if the Participant's employment terminates in a Qualifying Retirement (as defined below) prior to the Vesting Date, the Options shall become vested on the Vesting Dates set forth in the Notice provided (i) the Participant has not violated Section [13(b)](#i000b8f58467443799e9ddc38a3929951_7) through the

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applicable Vesting Date and (ii) the Participant has provided annual certification of such ongoing compliance with Section [13(b)](#i000b8f58467443799e9ddc38a3929951_7) in writing to the Company on each anniversary of the Grant Date (if any) that occurs following such Qualifying Retirement and prior to the applicable Vesting Date, and a final certification to such effect prior to (but no more than 90 days prior to) the applicable Vesting Date.

(e)For purposes of these Terms and Conditions, employment with the Company will be deemed to include employment with, or, if approved by the Administrator, other service to, the Company or Company's Affiliates, but in the case of employment with or service to an Affiliate, only during such time as such Affiliate is an affiliate of the Company.

(f)Notwithstanding anything contained in these Terms and Conditions to the contrary, the Administrator, in its sole discretion, may accelerate the vesting of any Options, at such times and upon such terms and conditions as the Administrator shall determine.

&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.<u>Termination for Cause</u>. If the Participant's employment is terminated for Cause, or if the Participant resigns at such time as the Company could have terminated the Participant's employment for Cause, then notwithstanding any other provision of these Terms and Conditions, the Participant will immediately forfeit any remaining Options, along with any Shares issuable with respect to such Options (even if otherwise vested and/or exercised) for which Shares have not yet been delivered.

&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.<u>Manner of Exercise</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 exercise of vested Options by the Participant shall be pursuant to procedures contained in the Plan and shall include the Participant specifying in writing the proposed date on which the Participant desires to exercise a vested Option (the "<u>Exercise Date</u>"), the number of whole shares with respect to which the Options are being exercised (the "<u>Exercise Shares</u>") and the aggregate Option Price for such Exercise Shares (the "<u>Exercise Price</u>"), or such other or different procedures and/or requirements as may be specified by the Administrator. Unless otherwise determined by the Administrator, (i) on or before the Exercise Date the Participant shall deliver to the Company full payment for the Exercise Shares in cash, or cash equivalents satisfactory to the Company, in an amount equal to the Exercise Price plus any required withholding taxes or other similar taxes, charges or fees, or, so long as there is a public market for the Shares at such time, pursuant to a broker-assisted exercise program established by the Company, the Participant may exercise vested Options by an exercise and sell procedure (cashless exercise) in which the Exercise Price (together with any required withholding taxes or other similar taxes, charges or fees) is deducted from the proceeds of the exercise of an Option and paid promptly to the Company and (ii) the Company shall register the issuance of the Exercise Shares on its records (or direct such issuance to be registered by the Company's transfer agent). The Administrator may require the Participant to furnish or execute such other documents as the Administrator shall reasonably deem necessary (A) to evidence such exercise or (B) to comply with or satisfy the requirements of the Securities Act, applicable state or non-U.S. securities laws or any other law.

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&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)Options may not be exercised following the Participant's termination of employment, except that, subject to Section 13(b), (i) if the Participant's employment terminates as a result of the Participant's death or Disability, vested and outstanding Options may be exercised through the first anniversary of the later of (A) the Participant's termination of employment and (B) the Vesting Date of such Option, (ii) if the Participant's employment terminates in a Qualifying Retirement, vested and outstanding Options may be exercised until the Expiration Date set forth in the Notice and (iii) if the Participant's employment terminates for any reason other than a termination by the Company for Cause, the Options may be exercised through the later of 90 days following (A) the Participant's termination of employment and (B) the Vesting Date of such Option. Any Options held by the Participant upon termination of the Participant's employment that are not eligible for exercise in accordance with this Section 4(b) will be automatically forfeited on the termination date without consideration therefor. Notwithstanding anything to the contrary, no Option may be exercised following the Expiration Date set forth in the Notice

&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.<u>Certain Definitions</u>. For purposes of these Terms and Conditions and notwithstanding any provision of the Plan to the contrary, the following definitions will apply:

&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>Cause</u>" with respect to the Participant, has the meaning set forth in (i) the Participant's employment agreement or offer letter with the Company or its Affiliate, or (ii) if the Participant is not party to an employment agreement or offer letter with the Company or its Affiliate agreement that contains a "cause" definition, the Warner Music Inc. Severance Plan for Regular U.S. Employees or its successor plan, as in effect from time to time.

&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>Employment Agreement</u>" means the Employment Agreement, dated as of April 10, 2025 by and between the Participant and the Company, as amended.

&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)"<u>Qualifying Retirement</u>" means the Participant's "separation from service" within the meaning of Section 409A of the Code after the Participant has attained age 60 and completed at least 10 years of employment with the Company.

&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)"<u>Special Termination</u>" has the meaning set forth in the Employment Agreement between the Participant and the Company.

&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.<u>Adjustments Upon Certain Events</u>. The Administrator may, in its sole discretion, make equitable substitutions or adjustments to the number of Shares, the Option Price or other terms of the Options pursuant to Section 3.3 of the Plan.

&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.<u>No Right to Continued Employment</u>. Neither the Plan, the Notice nor these Terms and Conditions shall be construed as giving the Participant the right to be retained in the employ of, or in any consulting relationship with, the Company or any of its Affiliates. Further, the Company (or, as applicable, its Affiliates) may at any time dismiss the Participant, free from any liability or any claim under the Plan, the Notice or these Terms and Conditions, except as otherwise expressly provided herein.

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&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.<u>No Acquired Rights</u>. The Options have been granted entirely at the discretion of the Administrator. The grant of the Options does not obligate the Company to grant additional Options or other awards to the Participant in the future (whether on the same or different 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;9.<u>No Rights of a Stockholder</u>. The Participant shall not have any rights or privileges as a stockholder of the Company in respect of Options or the Shares underlying the Options, which for the avoidance of doubt includes no rights to dividends or to vote, until the Shares in question have been registered in the Company's register of stockholders as being held by the Participant.

&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.<u>Transferability of Shares</u>. Any Shares issued or transferred to the Participant upon exercise of the Options shall be subject to such stop transfer orders and other restrictions as the Administrator may deem advisable under the Plan, the Notice, these Terms and Conditions or the rules, regulations and other requirements of the U.S. Securities and Exchange Commission, any stock exchange upon which such Shares are listed, and any applicable federal or state laws or relevant securities laws of the jurisdiction of the domicile of the Participant, and the Administrator may cause a legend or legends to be put on any certificates representing such Shares or make an appropriate entry on the record books of the appropriate registered book-entry custodian, if the Shares are not certificated, to make appropriate reference to such restrictions.

&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.<u>Transferability of Options</u>. Except as set forth in Section 16 of these Terms and Conditions or Section 12.1 of the Plan, the Options (and, prior to their actual issuance, the Shares underlying the Options) may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution, and any purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance not permitted by this Section [11](#i000b8f58467443799e9ddc38a3929951_7) shall be void and unenforceable.

&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.<u>Withholding; Taxation</u>. The Company and the Participant shall cooperate to satisfy applicable federal, state and local income and employment tax withholding requirements applicable to the grant, vesting, exercise and settlement of the Options (the "<u>Required Withholding</u>"). The Company shall withhold from the Shares that would otherwise have been transferred to the Participant in settlement of vested and exercised Options the number of Shares necessary to satisfy the Participant's Required Withholding unless the Required Withholding shall previously have been satisfied by the Participant or from other amounts payable by the Company to the Participant and, if applicable, shall deliver the remaining Shares to the Participant. The amount of the Required Withholding and the number of Shares to be withheld by the Company, if applicable, to satisfy Participant's Required Withholding, as well as the amount reflected on tax reports filed by the Company, shall be based on the Exercise Price and the Fair Market Value of the Shares on the date prior to the applicable Vesting Date or the date on which the Shares are delivered to the Participant, as appropriate. The obligations of the Company under these Terms and Conditions will be conditioned on such satisfaction of the Required Withholding. The payment of any applicable withholding taxes through the withholding of Shares otherwise issuable under in respect of the Options shall not exceed the minimum required withholding liability.

4899-0258-4878, v. 5

------

&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.<u>Clawback/Forfeiture; Other Company Policies</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)Notwithstanding anything to the contrary contained herein or in the Plan, in consideration for the grant of the Options, the Participant agrees that the Options and any Shares delivered upon exercise of the Options, (i) will be subject to the terms of any clawback or recapture policy that the Company may have in effect from time to time and, in accordance with such policy, may be subject to the requirement that the Shares subject to the Options or any cash payments made in respect thereof be repaid to the Company after they have been distributed to the Participant, and (ii) will, along with any other equity interests in the Company held by the Participant, be subject to any policy with respect to hedging or pledging of Shares that the Company may have in effect from time to time.

&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)Unless otherwise approved by the Administrator, as a condition to any Vesting Event described in Sections [2(c)](#i000b8f58467443799e9ddc38a3929951_7)-2[(d)](#i000b8f58467443799e9ddc38a3929951_7), the Participant shall not, to the extent permitted by applicable law, during the period following the Participant's employment and prior to the Vesting Date, without the prior written consent of Company, directly or indirectly, as an employee, agent, consultant, partner, joint venturer, owner, officer, director, member of any other firm, partnership, corporation or other entity, or in any other capacity, (i) own any interest in, manage, control, participate in, consult with, render services for, or otherwise be or be connected in any manner with, any recorded music, music distribution, music publishing or music entertainment business or any other business that the Company and its Affiliates has conducted during the one-year period immediately preceding the date of such termination or has plans to conduct as of the date of such termination anywhere in the world, or (ii) solicit, negotiate with, induce or encourage any record label, recording artist (including a duo or a group), publisher or songwriter who at the time is, or who within the preceding one-year prior period was, either directly or through a furnishing entity, under contract to Company or any affiliate of Company or a label distributed by Company or an affiliate of Company, to end its relationship with Company, Company affiliate or label, to violate any provision of his or her contract or to enter into an exclusive recording or music publishing agreement with any other party. Accordingly, the Participant agrees that, unless otherwise approved by the Administrator, without limiting any of the Company's rights pursuant to any clawback or recapture policy that the Company may have in effect from time to time, in the event of the Participant's violation of any of the covenants contained in this Section [13(b)](#i000b8f58467443799e9ddc38a3929951_7), the Participant will immediately forfeit all unvested Options held by the Participant, and the Participant will have no further rights 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;14.<u>Choice of Law</u>. THE OPTIONS, THESE TERMS AND CONDITIONS AND THE NOTICE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE WHOLLY PERFORMED WITHIN THAT STATE. ANY ACTION TO ENFORCE THE TERMS OF THE OPTIONS, THE PLAN, THESE TERMS AND CONDITIONS OR THE NOTICE MUST BE BROUGHT IN A COURT SITUATED IN, AND THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF, COURTS SITUATED IN NEW YORK COUNTY, NEW YORK. EACH PARTY HEREBY WAIVES THE RIGHTS TO

4899-0258-4878, v. 5

------

CLAIM THAT ANY SUCH COURT IS AN INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH ACTION.

&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.<u>Options Subject to Plan</u>. All the Options are subject to the Plan, a copy of which has been provided to the Participant and the terms of which are incorporated herein by this reference. Except as set forth in Section 12(b), if there is any inconsistency between any express provision of these Terms and Conditions and any express term of the Plan, the express term of the Plan shall govern.

&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.<u>Beneficiary</u>. The Participant may file with the Company a written designation of a beneficiary on such form as may be prescribed by the Company and may, from time to time, amend or revoke such designation. If no designated beneficiary survives the Participant, the executor or administrator of the Participant's estate shall be deemed to be the Participant's beneficiary. The Participant's beneficiary shall succeed to the rights and obligations of the Participant hereunder upon the Participant's death, except as maybe otherwise described herein or in the Plan.

&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.<u>Entire Agreement; Severability</u>. The Plan, these Terms and Conditions and the Notice contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto. No change, modification or waiver of any provision of the Notice or these Terms and Conditions shall be valid unless the same be in writing and signed by the parties hereto. Whenever possible, each provision of these Terms and Conditions shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of these Terms and Conditions is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but these Terms and Conditions shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

&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.<u>Additional Terms</u>. Notwithstanding any other provision of the Plan, these Terms and Conditions or the Notice, the Options shall be subject to any special terms and conditions set forth in an addendum to these Terms and Conditions for the Participant's country or jurisdiction, if any. Moreover, if the Participant relocates to one of the countries included in such addendum, if applicable, the special terms and conditions for such country will apply to Participant, without the Participant's consent, to the extent the Company determines in its sole discretion that the application of such terms or conditions is necessary or advisable for legal or administrative reasons. Any such addendum provided to the Participant will constitute part of these Terms and Conditions.

&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.<u>Acceptance of Options and Agreement</u>. The Participant has indicated the Participant's consent and acknowledgement of the terms of these Terms and Conditions pursuant to the instructions provided to the Participant by or on behalf of the Company. The Participant acknowledges receipt of the Plan, represents to the Company that the Participant has read and understood these Terms and Conditions and the Plan, and, as an express condition to the grant of the Options under these Terms and Conditions, agrees to be bound by the terms of both these

4899-0258-4878, v. 5

------

Terms and Conditions and the Plan. The Participant and the Company each agrees and acknowledges that the use of electronic media (including, without limitation, a click-through button or checkbox on a website of the Company or a third-party administrator) to indicate the Participant's confirmation, consent, signature, agreement and delivery of these Terms and Conditions and the Options is legally valid and has the same legal force and effect as if the Participant and the Company signed and executed these Terms and Conditions in paper form. The same use of electronic media may be used for any amendment or waiver of these Terms and Conditions.

4899-0258-4878, v. 5

## Exhibit 10.3

**Exhibit 10.3**

***Execution Version***

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [\*\*\*] INDICATES THAT THE INFORMATION HAS BEEN REDACTED.**

![image_01.jpg](image_01.jpg)**MASTER OPERATIONS AND ECONOMICS AGREEMENT**

BY AND AMONG

BCSS W JV INVESTMENTS (B), L.P.,

WMG BC HOLDCO LLC,

BEETHOVEN JV 1, LLC,

BEETHOVEN HOLDINGS 1, LLC,

BEETHOVEN FINANCING 1, LLC,

THE BCSS FUNDS AND THE WARNER PARENT, IN EACH CASE, SOLELY FOR THE PURPOSES OF SECTION 13.04, SECTION 13.05 AND SECTION 14.13

AND

EACH OTHER PERSON WHO BECOMES PARTY TO THIS AGREEMENT FROM TIME TO TIME PURSUANT TO A JOINDER AGREEMENT

**June 29, 2025**

------

**TABLE OF CONTENTS**

**Page**

<u>[ARTICLE II ORGANIZATION AND STRUCTURE](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[19](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 2.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Structure](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[19](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 2.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Purpose](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[20](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 2.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Acquisition of In-Scope Catalogs by the Beethoven Entities](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[20](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 2.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Formation of Subsequent Beethoven Entities and their Subsidiaries](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[20](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 2.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Fiscal Year](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[21](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 2.06](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[No State Law Partnership](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[21](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE III CONTRIBUTIONS AND MEMBERS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[21](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 3.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Capital Commitments](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[21](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 3.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Interest Payments](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[24](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 3.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Withdrawals](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[25](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 3.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Capital Accounts](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[25](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 3.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[No Obligations for Other Members](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[25](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 3.06](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[No Deficit Restoration Obligation](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[25](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE IV MANAGEMENT OF THE BEETHOVEN ENTITIES](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[26](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 4.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Management of the Beethoven Entities](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[26](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 4.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Resignations; Board Vacancies; Removal](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[27](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 4.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Business Opportunities; Competition](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[27](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 4.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Initial Public Offering](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[30](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 4.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Budgets](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[33](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE V DISTRIBUTIONS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[33](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 5.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Distributions Generally](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[33](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 5.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Distribution Priority](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[33](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 5.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Distributions of Securities](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[34](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 5.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Withholding Tax Payments and Obligations](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[35](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 5.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Tax Advances](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[36](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE VI ALLOCATIONS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[37](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 6.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[General Application](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[37](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 6.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Loss Limitation](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[37](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 6.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Special Allocations](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[37](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 6.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Transfer of Membership Interests](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[38](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 6.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Tax Allocations](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[38](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE VII TAX MATTERS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[39](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 7.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Consistency](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[39](#i8a6e14ccda93420eb71332bd43138fa8_7)

i

------

<u>[Section 7.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Tax Returns](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[39](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 7.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representation of the Beethoven Tax Partnership in Tax Matters](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[39](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 7.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Accounting Methods; Elections](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[41](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 7.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Partnership Status](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[41](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 7.06](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Confidentiality](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[42](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE VIII TRANSFERS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[43](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Transfers of Interests](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[43](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Permitted and Prohibited Transfers](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[45](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Permitted Transfer Procedures](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[45](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Liquidity Right and Right of First Offer](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[46](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Member Tag-Along Right](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[52](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.06](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Drag-Along Right](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[54](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.07](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Indirect Transfers](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[56](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 8.08](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Back Leverage](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[56](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE IX DISSOLUTION; LIQUIDATION](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[56](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 9.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Dissolution](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[56](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 9.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Final Accounting](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[57](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 9.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Liquidation](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[57](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 9.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Cancellation of Certificate](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[58](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE X TERMINATION](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[58](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 10.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Termination](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[58](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 10.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Effect of Termination](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[58](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE XI AMENDMENTS; NOTICES; BOOKS AND RECORDS; REPORTS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[59](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 11.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Amendments by the Members](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[59](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 11.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Method for Notices](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[59](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 11.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Books and Records](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[59](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 11.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Reports to Members](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[59](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE XII CERTAIN COVENANTS OF THE MEMBERS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[61](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 12.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Warehouse Facility Compliance](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[61](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 12.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Securitization Financing](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[61](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 12.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Intellectual Property](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[62](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 12.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Employee Services](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[62](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 12.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Hedging](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[63](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE XIII REPRESENTATIONS AND WARRANTIES](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[63](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 13.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representations by Beethoven 1](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[63](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 13.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representations by the BCSS Member](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[64](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 13.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representations by the Warner Member](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[64](#i8a6e14ccda93420eb71332bd43138fa8_7)

ii

------

<u>[Section 13.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representations by the BCSS Funds](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[65](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 13.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representations by the Warner Parent](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[65](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 13.06](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Representations by the Beethoven Entities](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[66](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[ARTICLE XIV GENERAL PROVISIONS](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[66](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.01](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Governing Law; Submission to Jurisdiction; Waiver of Jury Trial](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[66](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.02](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Counterparts](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[67](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.03](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Construction; Headings](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[67](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.04](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Severability](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[67](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.05](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Successors and Assigns](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[67](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.06](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Entire Agreement](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[68](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.07](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[No Third-Party Beneficiaries](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[68](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.08](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Remedies and Waivers](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[68](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.09](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Specific Performance](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[68](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.10](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Public Announcements](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[68](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.11](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Aggregation of Rights](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[69](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.12](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Non-Recourse Parties](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[69](#i8a6e14ccda93420eb71332bd43138fa8_7)

<u>[Section 14.13](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)<u>[Equity Commitment and Guarantees.](#i8a6e14ccda93420eb71332bd43138fa8_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i8a6e14ccda93420eb71332bd43138fa8_7)[70](#i8a6e14ccda93420eb71332bd43138fa8_7)

Exhibit A&nbsp;&nbsp;&nbsp;&nbsp;Initial Capital Commitments

Exhibit B&nbsp;&nbsp;&nbsp;&nbsp;Form of Certificate of Formation

Exhibit C&nbsp;&nbsp;&nbsp;&nbsp;Illustrative Structure Chart

Exhibit D&nbsp;&nbsp;&nbsp;&nbsp;Form of Joinder Agreement

Exhibit E&nbsp;&nbsp;&nbsp;&nbsp;Form of Beethoven Topco LLC Agreement

Exhibit F-1&nbsp;&nbsp;&nbsp;&nbsp;Form of Warner Services Agreement

Exhibit F-2&nbsp;&nbsp;&nbsp;&nbsp;Form of Bain Services Agreement

Exhibit G&nbsp;&nbsp;&nbsp;&nbsp;Form of Beethoven Financing Subsidiary LLC Agreement

Exhibit H&nbsp;&nbsp;&nbsp;&nbsp;Form of Distribution Agreement

Exhibit I&nbsp;&nbsp;&nbsp;&nbsp;Form of Administration Agreement

Exhibit J&nbsp;&nbsp;&nbsp;&nbsp;Form of Commercial Agreement Side Letters

Exhibit K&nbsp;&nbsp;&nbsp;&nbsp;Form of Capital Call Notice

Schedule 8.04(a)(ii)&nbsp;&nbsp;&nbsp;&nbsp;Qualified Firms

Schedule 14.13(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BCSS Funds Allocation Percentage

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**MASTER OPERATIONS AND ECONOMICS AGREEMENT**

This MASTER OPERATIONS AND ECONOMICS AGREEMENT (as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, this "<u>Agreement</u>") is made and entered into as of June 29, 2025 (the "<u>Effective Date</u>"), by and among (a) BCSS W JV Investments (B), L.P., a Delaware limited partnership, (together with its Permitted Transferees, the "<u>BCSS Member</u>"); (b) WMG BC Holdco LLC, a Delaware limited liability company (together with its Permitted Transferees, the "<u>Warner Member</u>"); (c) solely for purposes of <u>Section 13.04</u> and <u>Section 14.13</u>, (i) Bain Capital Special Situations Asia II, L.P., a Delaware limited partnership, (ii) Bain Capital Special Situations Europe II SCSp, a société en commandite spéciale formed under the laws of Luxembourg, (iii) Bain Capital Credit Managed Account (VFMC), L.P., a Cayman Islands exempted limited partnership, (iv) Bain Capital GSS 2022 (A), L.P., a Delaware limited partnership, (v) Bain Capital GSS 2022 (B), SCSp, a société en commandite spéciale formed under the laws of Luxembourg, (vi) Point Lonsdale Fund, L.P., a limited partnership formed under the laws of Alberta, Canada, (vii) Bain Capital Special Situations Managed Account (N), L.P., a Delaware limited partnership, (viii) Bain Capital Special Situations Managed Account (CLP), L.P., a Delaware limited partnership, (ix) Bain Capital Credit Managed Account (BC), L.P., a Delaware limited partnership ((i) through (ix), each, a "<u>BCSS Fund</u>" and collectively, the "<u>BCSS Funds</u>") and (x) BCSS W GP LLC, a Delaware limited liability company (the "<u>BCSS GP</u>"); (d) solely for purposes of <u>Section 13.05</u> and <u>Section 14.13</u>, WMG Acquisition Corp., a Delaware corporation (the "<u>Warner Parent</u>"); (e) Beethoven JV 1, LLC, a Delaware limited liability company ("<u>Beethoven 1</u>"); (f) Beethoven Holdings 1, LLC, a Delaware limited liability company, a direct, wholly owned subsidiary of Beethoven 1 ("<u>Beethoven Holdings 1</u>"); (g) Beethoven Financing 1, LLC, a Delaware limited liability company, a direct, wholly owned subsidiary of Beethoven Holdings 1 ("<u>Beethoven Financing 1</u>"); (h) each other Entity that is formed by the Members to directly or indirectly hold In-Scope Catalogs pursuant to the terms of this Agreement and that becomes a party to this Agreement from time to time pursuant to a Joinder Agreement (Beethoven 1, Beethoven Holdings 1, Beethoven Financing 1, together with such other Entities, the "<u>Beethoven Entities</u>" and each, a "<u>Beethoven Entity</u>"); and (i) any Person that acquires Interests who becomes party to this Agreement from time to time pursuant to a Joinder Agreement. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in <u>Article I</u>.

W I T N E S S E T H:

WHEREAS, on the Effective Date, the BCSS Member and the Warner Member wish to set forth the rights, entitlements, liabilities and obligations with respect to each Member's ownership of Beethoven 1, and in furtherance thereof, the BCSS Member and the Warner Member wish to enter into (a) that certain Amended and Restated Limited Liability Company Agreement of Beethoven 1 (such limited liability company agreement, as may be amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "<u>Beethoven 1 LLC Agreement</u>") and (b) this Agreement, which, taken together with the Beethoven 1 LLC Agreement, are intended by the Members to serve as the "limited liability company agreement" of Beethoven 1 within the meaning of Section 18-101(9) of the Delaware Act for all such purposes;

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WHEREAS, from time to time, in accordance with the terms and conditions of this Agreement, the Members may form additional Beethoven Entities; and

WHEREAS, the Members intend that the rights, entitlements, liabilities and obligations contained in this Agreement and each of the Beethoven Limited Liability Company Agreements for all of the Beethoven Entities whether now or in the future formed (a) be determined on an aggregated or disaggregated basis, as applicable in accordance herein or therein, across all of the Beethoven Entities collectively; (b) reflect, embody and constitute a tax partnership between the Members for federal, and applicable state and local, income tax purposes (the "<u>Beethoven Tax Partnership</u>"); and (c) be treated as the "partnership agreement" within the meaning of Section 761 of the Code governing the Beethoven Tax Partnership for all such purposes, and that each Beethoven Entity be treated as a disregarded entity of the Beethoven Tax Partnership within the meaning of Regulations Section 301.7701-3(b)(ii) for all such purposes.

NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Members, each Beethoven Entity and the Beethoven Tax Partnership, each intending to be legally bound, agree as follows:

**Article I<br>DEFINITIONS**

"<u>Adjusted Capital Account Deficit</u>" means, with respect to any Member, the deficit balance, if any, in such Member's Capital Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments:

&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)credit to such Capital Account any amounts that such Member is obligated to restore pursuant to any provision of this Agreement or is deemed obligated to restore pursuant to the penultimate sentences of Regulations Sections 1.704-2(g)(1) and 1.704-2(i)(5); 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)debit to such Capital Account the items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5) and 1.704-1(b)(2)(ii)(d)(6).

The foregoing definition of Adjusted Capital Account Deficit is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith.

"<u>Administration Agreement</u>" means an exclusive administration agreement by and among (a) W Chappell Music Corp. d/b/a WC Music Corp., Warner-Tamerlane Publishing Corp., W.C.M Music Corp. and Warner Chappell Music, Inc. d/b/a Warner Geometric Music (collectively, the "<u>Warner Admin Parties</u>"), and Beethoven Financing 1, dated as of the Effective Date, (b) the Warner Admin Parties and another Beethoven Financing Subsidiary, dated as of a future date, or (c) collectively, the Administration Agreements referred to in the foregoing clauses (a) and (b), in each case, as the context requires.

"<u>Admin Agreement Side Letter</u>" means that certain side letter related to the Administration Agreement, by and among (a) the Warner Admin Parties and Beethoven

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Financing 1, dated as of the Effective Date, (b) another Beethoven Financing Subsidiary and the Warner Admin Parties, dated as of a future date, or (c) collectively, the Admin Agreement Side Letters referred to in the foregoing clauses (a) and (b), in each case, as the context requires.

"<u>Affiliate</u>" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with such Person, and the term "<u>Affiliated</u>" shall have a correlative meaning; <u>provided</u>*,* that for purposes of this Agreement, (a) none of the Beethoven Entities nor any of their Subsidiaries shall be deemed to be an Affiliate of any of the Members or any of their respective Affiliates; (b) other than for purposes of Section 3.02(b)(iii) of the Beethoven Topco LLC Agreements, none of Access Industries, Inc., any of its investment funds, investments or managed vehicles or any Subsidiary or portfolio company thereof (other than Warner Music Group Corp. and its Subsidiaries) (collectively, the "<u>Access Parties</u>") shall be considered an Affiliate of the Warner Member; and (c) no portfolio company of Bain Capital shall be considered an Affiliate of the BCSS Member; <u>provided</u>, that notwithstanding the foregoing, (i) for purposes of Section 3.02(b)(iii) of the Beethoven Topco LLC Agreements, Affiliates of the BCSS Member shall include portfolio companies of Bain Capital Special Situations, LP and (ii) for purposes of <u>Section 4.03(b)</u>, Affiliates of the BCSS Member shall include (and shall only include) Bain Capital Special Situations, LP and funds managed or advised by Bain Capital Special Situations, LP and their Subsidiaries (in each case excluding portfolio companies of any of the foregoing as of the Effective Date).

"<u>Agreement</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Applicable Rate</u>" means [\*\*\*].

"<u>Authorized Representative</u>" has the meaning set forth in <u>Section 7.06</u>.

"<u>Available Cash</u>" means, as of any date of determination, (a) the aggregate amount of cash, cash equivalents or marketable securities of the Beethoven Tax Partnership including the Beethoven Entities and their Subsidiaries, determined on a consolidated basis, minus (b) the aggregate amount of Reserves of the Beethoven Tax Partnership including the Beethoven Entities and their Subsidiaries, determined on a consolidated basis to be necessary by the Board in accordance with the terms set forth in the definition of Reserves herein.

"<u>Back Leverage</u>" means one or more good faith incurrences of indebtedness (including any loan, fund financing, back leverage or other debt financing arrangement), including to banks or financial institutions as collateral or security for loans, advances or extensions of credit.

"<u>Back Leverage Lender</u>" means any lender (including any entity acting as administrative agent or collateral agent for any such lender(s)) in connection with any Back Leverage that is a bank, a financial institution, a pension fund, a sovereign wealth fund or another investment fund that is primarily engaged in making, purchasing, holding or otherwise investing in commercial loans, bonds and similar extensions of credit or debt securities in the ordinary course.

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"<u>Bain Services Agreement</u>" means that certain services agreement, by and among (a) Beethoven 1, Beethoven Holdings 1 and Beethoven Financing 1 and Bain Capital Credit, LP, dated as of the Effective Date, (b) Bain Capital Credit, LP and a Beethoven Topco and its Subsidiaries, including the Beethoven Financing Subsidiaries, dated as of a future date, or (c) collectively, the Bain Services Agreements referred to in the foregoing clauses (a) and (b), in each case, as the context requires.

"<u>BBA Rules</u>" means Subchapter C of Chapter 63 of the Code (Sections 6221 et seq.) and any Regulations and other guidance promulgated thereunder, and any similar state or local legislation, regulations or guidance, in each case, as may be amended from time to time.

"<u>BCSS Exclusivity Period</u>" has the meaning set forth in <u>Section 8.04(b)</u>.

"<u>BCSS Exit Notice</u>" has the meaning set forth in <u>Section 8.04(a)</u>.

"<u>BCSS Forced Sale</u>" has the meaning set forth in <u>Section 8.04(a)(iv)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;"<u>BCSS Forced Sale Period</u>" has the meaning set forth in Section <u>8.04(a)(iv)</u>.

"<u>BCSS Funds</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>BCSS Manager</u>" has the meaning set forth in <u>Section 4.01(a)(i)</u>.

"<u>BCSS Member</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>BCSS Observer</u>" has the meaning set forth in Section <u>4.01(e)(i)</u>.

"<u>BCSS Permitted Transferee</u>" has the meaning set forth in Section <u>8.02(b)</u>.

"<u>BCSS Sale Interests</u>" has the meaning set forth in <u>Section 8.04(a)</u>.

"<u>BCSS to Warner Definitive Agreement</u>" has the meaning set forth in <u>Section 8.04(a)(i)</u>.

"<u>BCSS to Warner Exchange Date</u>" has the meaning set forth in Section <u>8.04(a)(ii)</u>.

"<u>BCSS to Warner Sale</u>" has the meaning set forth in <u>Section 8.04(a)</u>.

"<u>BCSS Value</u>" means the Fair Market Value as proposed by the BCSS Member for the BCSS Sale Interests or the Warner Sale Interests, as applicable, in accordance with Section <u>8.04</u>.

"<u>Beethoven 1</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Beethoven 1 LLC Agreement</u>" has the meaning set forth in the recitals.

"<u>Beethoven Entity</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Beethoven Financing 1</u>" has the meaning set forth in the introductory paragraph hereto.

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"<u>Beethoven Financing 1 LLC Agreement</u>" means that certain limited liability company agreement of Beethoven Financing 1, dated as of the Effective Date.

"<u>Beethoven Financing Subsidiaries</u>" means Beethoven Financing 1, Beethoven Holdings 1 and those Beethoven Entities formed as a direct or indirect Subsidiary of a Beethoven Topco as and when required by Section <u>2.04</u>.

"<u>Beethoven Financing Subsidiary LLC Agreements</u>" has the meaning set forth in <u>Section 2.04</u>.

"<u>Beethoven Holdings 1</u>" has the meaning set forth in the introductory paragraph hereto.

"<u>Beethoven Holdings 1 LLC Agreement</u>" means that certain limited liability company agreement of Beethoven Holdings 1, dated as of the Effective Date.

"<u>Beethoven Limited Liability Company Agreements</u>" means, collectively, the Beethoven Topco LLC Agreements and the Beethoven Financing Subsidiary LLC Agreements.

"<u>Beethoven Tax Partnership</u>" has the meaning set forth in the recitals.

"<u>Beethoven Topco</u>" means those Beethoven Entities that are sister entities of Beethoven 1 and formed by the Members under this Agreement as and when required by Section <u>2.04</u>.

"<u>Beethoven Tax Partnership Minimum Gain</u>" has the same meaning as "partnership minimum gain" set forth in Regulations Sections 1.704-2(b)(2) and 1.704-2(d), determined with respect to the Beethoven Tax Partnership in its entirety.

"<u>Beethoven Topco LLC Agreements</u>" has the meaning set forth in <u>Section 2.04</u>.

"<u>Blocker Entity</u>" means any Entity that is taxable as a corporation for Federal income tax purposes that was formed to hold, and that (directly or indirectly) holds (and has held since the date of its formation) no assets other than Interests or cash and cash equivalents, and has (and has had since the date of its formation) no liabilities or obligations other than any shareholder loans and any liabilities or obligations arising directly out of such Interests.

"<u>Board</u>" means, the Board of Managers of each Beethoven Topco, with references herein to the "Board" referring to the Boards of all Beethoven Topcos, collectively, or individually, as the context requires.

"<u>Board Observers</u>" has the meaning set forth in <u>Section 4.01(e)(ii)</u>.

"<u>Business Day</u>" means any day, excluding Saturday, Sunday and any other day on which commercial banks in New York, New York or Boston, Massachusetts are authorized or required by law to close. For any period that is measured in Business Days, if the scheduled termination of such period would fall on a day that is not a Business Day, then the termination of such period shall be deferred until the next succeeding Business Day.

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"<u>Business Opportunities</u>" has the meaning set forth in Section <u>4.03(a)</u>.

"<u>Capital Account</u>" has the meaning set forth in <u>Section 3.04(a)</u>.

"<u>Capital Call</u>" has the meaning set forth in <u>Section 3.01(b)(i)</u>.

"<u>Capital Call Notice</u>" has the meaning set forth in <u>Section 3.01(b)(iv)</u>.

"<u>Capital Contribution</u>" means, with respect to any Class A Unit in respect of any Beethoven Topco, the amount of money or the fair market value (as determined by the Board; <u>provided,</u> that no such determination shall treat any Class A Member differently from any other Class A Member in respect of the same contribution) of any property (other than money) contributed to any Beethoven Topco in respect of such Class A Unit. The Capital Contribution applicable to each Class A Unit shall be adjusted by the Board in good faith simultaneously across all of the Beethoven Topcos to account for the effect of any recapitalization events (which recapitalization shall have identical impact across all Beethoven Topcos).

"<u>Capital Contribution Percentage</u>" means, with respect to any Member, a fraction, expressed as a percentage, the numerator of which is equal to the aggregate Capital Contributions made by such Member to all of the Beethoven Topcos and the denominator of which is equal to the aggregate Capital Contributions made by all Members to all of the Beethoven Topcos.

"<u>Class A Contribution</u>" has the meaning set forth in <u>Section 3.01(a)(i)</u>.

"<u>Class A Member</u>" means, collectively, the Class A-1 Members and Class A-2 Members.

"<u>Class A Units</u>" means, collectively, the Class A-1 Units and Class A-2 Units.

"<u>Class A-1 Member</u>" means, as of any date of determination, a holder of Class A-1 Units.

"<u>Class A-1 Unit</u>" means an Interest designated as a Class A-1 Unit in respect of any Beethoven Topco, having the rights and obligations specified in this Agreement and the applicable Beethoven Topco LLC Agreement.

"<u>Class A-1 Unit Liquidation Preference</u>" means, with respect to any Class A-1 Unit, as of any date of determination, (a) the sum of (i) the Capital Contribution made in respect of such Class A-1 Unit and (ii) any accrued and unpaid Class A-1 Unit Return associated with such Class A-1 Unit, *less* (without duplication) (b) any amounts previously distributed by the applicable Beethoven Topco pursuant to this Agreement and the applicable Beethoven Topco LLC Agreement in respect of such Class A-1 Unit. For purposes of computing the foregoing, all distributions made in respect of a Class A-1 Unit shall first be treated as made in payment of any accrued and unpaid Class A-1 Unit Return, and only after the Class A-1 Unit Return has been paid in full shall distributions in respect of such Class A-1 Unit be treated as reducing the foregoing clause (a)(i). The Class A-1 Unit Liquidation Preference (and the components thereof) applicable to any Class A-1 Unit shall be adjusted by the Board in good faith to account for the effect of any recapitalization events. For purposes of calculating the foregoing, all Class A-1 Units shall be treated as if they were issued by a single entity and all distributions made by the

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Beethoven Entities shall be treated as if they are made by such single entity and distributed pursuant to <u>Section 5.01</u> and <u>Section 5.02</u>, on an aggregated basis.

"<u>Class A-1 Unit Return</u>" means, with respect to any Class A-1 Unit, as of any date of determination, an amount equal to the sum of (a) the accrued and unpaid Class A-1 Unit Yield for each applicable period from the date of issuance through the close of the immediately prior Fiscal Year and (b) the accrued and unpaid Class A-1 Unit Yield in respect of such Class A-1 Unit for the then-current Fiscal Year.

"<u>Class A-1 Unit Yield</u>" means, with respect to any Class A-1 Unit, as of any date of determination, an accrual at a rate per annum equal to the Applicable Rate on the Class A-1 Unit Liquidation Preference for such Class A-1 Unit, accruing from the date of issuance and determined as of the end of the immediately prior Fiscal Year (or, if a Fiscal Year end has not passed since the date of issuance of such Class A-1 Unit, the date of issuance), accruing on a daily basis and compounding as of the end of each Fiscal Year and equitably adjusted to account for distributions actually made within any Fiscal Year in accordance with the terms and conditions hereof.

"<u>Class A-2 Member</u>" means, as of any date of determination, a holder of Class A-2 Units.

"<u>Class A-2 Unit</u>" means an Interest designated as a Class A-2 Unit in respect of any Beethoven Topco, having the rights and obligations set forth in this Agreement and the applicable Beethoven Topco LLC Agreement.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Commercial Agreements</u>" means, collectively, the Administration Agreement and the Distribution Agreement.

"<u>Commercial Agreement Side Letters</u>" means that certain Admin Agreement Side Letter and that certain Distribution Agreement Side Letter.

"<u>Commitment Period</u>" means a period of [\*\*\*] beginning on the Effective Date.

"<u>Commitment Termination</u>" has the meaning set forth in Section <u>3.01(a)(i)</u>.

"<u>Control</u>", "<u>Controlled</u>" and "<u>Controlling</u>" mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of at least 50% of voting Securities, by contract or otherwise.

"<u>Delaware Act</u>" means the Delaware Limited Liability Company Act (6 <u>Del</u>. <u>C</u>. § 18-101, <u>et seq.</u>, as amended and in effect from time to time).

"<u>Depreciation</u>" means, for each Fiscal Year, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable with respect to an asset for such Fiscal Year, except that (a) with respect to any asset the Gross Asset Value of which differs from its adjusted tax basis for Federal income tax purposes at the beginning of such Fiscal Year and

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which difference is being eliminated by use of the "remedial allocation method" as defined by Section 1.704-3(d) of the Regulations, Depreciation for such Fiscal Year shall be the amount of book basis recovered for such Fiscal Year under the rules prescribed by Section 1.704-3(d)(2) of the Regulations, and (b) with respect to any other asset the Gross Asset Value of which differs from its adjusted tax basis for Federal income tax purposes at the beginning of such Fiscal Year, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the Federal income tax depreciation, amortization, or other cost recovery deduction for such Fiscal Year bears to such beginning adjusted tax basis; <u>provided</u>, that in the case of clause (b) of this definition, if the adjusted basis for Federal income tax purposes of an asset at the beginning of such Fiscal Year is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Board. For clarity, Depreciation shall be computed on an aggregate basis across all of the Beethoven Entities by reference to the assets held by the Beethoven Tax Partnership collectively.

"<u>Distribution Agreement</u>" means (a) that certain distribution agreement by and between the Beethoven Financing 1 and Warner Music Inc., dated as of the Effective Date, (b) a distribution agreement by and between another Beethoven Financing Subsidiary and Warner Music Inc., dated as of a future date, or (c) collectively, the Distribution Agreements referred to in the foregoing clauses (a) and (b), in each case, as the context requires.

"<u>Distribution Agreement Side Letter</u>" means that certain side letter related to the Distribution Agreement, by and among (a) Beethoven Financing 1 and Warner Music Inc., dated as of the Effective Date, (b) another Beethoven Financing Subsidiary and Warner Music Inc., dated as of a future date, or (c) collectively, the Distribution Agreement Side Letters referred to in the foregoing clauses (a) and (b), in each case, as the context requires.

"<u>Drag-Along Member</u>" has the meaning set forth in <u>Section 8.06(a)</u>.

"<u>Drag-Along Notice</u>" has the meaning set forth in <u>Section 8.06(b)</u>.

"<u>Drag-Along Sale</u>" has the meaning set forth in <u>Section 8.06(a)</u>.

"<u>Effective Date</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Entity</u>" means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, cooperative, association or other legal entity or organization.

"<u>Equity Securities</u>" means Class A Units or other Interests or equity Securities of any of the Beethoven Entities or their Subsidiaries or other Securities or instruments exercisable for or convertible into equity interests in such Beethoven Entity or any of its Subsidiaries, or to accept Capital Contributions.

"<u>Exit Committee</u>" has the meaning set forth in <u>Section 8.04(c)(i)</u>.

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"<u>Fair Market Value</u>" means with respect to the BCSS Sale Interests or the Warner Sale Interests, as applicable, [\*\*\*].

"<u>FMV Equity Value</u>" means the total equity value of the Beethoven Entities and their Subsidiaries, assuming a willing buyer and a willing seller, calculated using customary valuation techniques (such as EBITDA and other applicable multiples and discounted cash flow principles of valuation) and assuming such value takes into account all material facts concerning such Beethoven Entities and their Subsidiaries and their respective businesses.

"<u>Federal</u>" has the meaning set forth in <u>Section 14.03</u>.

"<u>Fiscal Year</u>" has the meaning set forth in <u>Section 2.05</u>.

"<u>Funding Percentage</u>" means, with respect to a Member, as applicable, as of the time of the funding of a particular Capital Call, a fraction, expressed as a percentage, the numerator of which is equal to such Member's Remaining Commitment and the denominator of which is equal to the sum of the Remaining Commitments of all Members at such time.

"<u>GAAP</u>" means generally accepted accounting principles in the United States of America, as consistently applied by WMG or a successor Entity thereof.

"<u>Governmental Body</u>" means any: (a) nation, state, county, city, town, borough, village, district or other jurisdiction; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any agency, branch, department, board, commission, court, tribunal or other entity exercising governmental or quasi-governmental powers); (d) multinational organization or body; (e) body exercising, or entitled or purporting to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, including any arbitral tribunal; or (f) official of any of the foregoing.

"<u>Gross Asset Value</u>" means, with respect to any asset, the asset's adjusted basis for Federal income tax purposes, except as follows (with all determinations of the Gross Asset Value of any asset being determined by the Board in good faith and in accordance with the terms of this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;the Gross Asset Value of any asset contributed by a Member to the Beethoven Tax Partnership is the gross fair market value of such asset as determined at the time of contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;the Gross Asset Value of all Beethoven Tax Partnership assets shall be adjusted to equal their respective gross fair market values (taking Section 7701(g) of the Code into account) as determined by the Board as of the following times: (i) the acquisition of any additional Interests by any new or existing Member in exchange for more than a *de minimis* Capital Contribution; (ii) the distribution by the Beethoven Tax Partnership to a Member of more than a *de minimis* amount of property as consideration for any Interests; (iii) the grant of any Interests (other than a *de minimis* number of Interests) as consideration for the provision of services to or for the benefit of the Beethoven Tax Partnership by an existing Member acting in a Member

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capacity, or by a new Member acting in a Member capacity or in anticipation of becoming a Member; (iv) the liquidation of the Beethoven Tax Partnership within the meaning of Regulations Section 1.704-1(b)(2)(ii)(g); and (v) at such other times as determined by the Board and otherwise permitted by applicable law or the Regulations; <u>provided</u>, that the adjustments pursuant to clauses (i), (ii) and (iii) above shall be made only if the Board reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Beethoven Tax Partnership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;the Gross Asset Values of such assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Section 734(b) or Section 743(b) of the Code, but only to the extent that such adjustments are taken into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m) and clause (f) of the definition of "Net Income" and "Net Loss" or <u>Section 6.03</u>; <u>provided</u>, that Gross Asset Values shall not be adjusted pursuant to this clause (c) to the extent that an adjustment pursuant to clause (b) is required in connection with a transaction that would otherwise result in an adjustment pursuant to this clause (c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;if the Gross Asset Value of any Beethoven Tax Partnership asset distributed to any Member shall be adjusted to equal the gross fair market value of such asset on the date of distribution (taking Section 7701(g) of the Code into account) as determined by the Board, acting in good faith and in accordance with the terms of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;if the Gross Asset Value of a Beethoven Tax Partnership asset has been determined or adjusted pursuant to clause (a), clause (b) or clause (c) above, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Net Income and Net Loss.

For clarity, for all Federal, and all applicable state and local, income tax purposes each of the assets held by any Beethoven Entity shall be treated as held by the Beethoven Tax Partnership collectively as reflected in the Beethoven Tax Partnership formed by virtue of this Agreement and the Beethoven Limited Liability Company Agreements, and the foregoing definition of "Gross Asset Values" shall be interpreted accordingly.

"<u>Imputed Underpayment Amount</u>" has the meaning set forth in Section <u>7.03(a).</u>

"<u>Indebtedness</u>" of any Person means, without duplication (whether contingently or otherwise) (a) indebtedness of such Person for borrowed money, whether secured or unsecured, and whether or not evidenced by bonds, debentures, notes, other debt securities or other instruments, and indebtedness of such Person issued or, without duplication, incurred in substitution or exchange for indebtedness for borrowed money; (b) indebtedness of such Person evidenced by any note, bond, debenture or other debt security; (c) payment obligations of such Person in respect of any financial hedging arrangements or similar agreements; (d) required lease payments under leases that have been, or should be, recorded as capital leases in accordance with GAAP; (e) any payment obligations under conditional sale or other title retention agreement relating to property purchased by such Person; (f) obligations of such Person under any performance bond or letter of credit or similar arrangement; and (g) obligations of such Person

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under any guarantees, pledges, liens, mortgages or security interests with respect to any Person other than any Beethoven Entity or their Subsidiaries in respect of any of the items set forth in clauses (a) through (f).

"<u>Independent Valuator</u>" has the meaning set forth in <u>Section 8.04(a)(ii)</u>.

"<u>Independent Valuator Notice</u>" has the meaning set forth in <u>Section 8.04(a)(ii)</u>.

"<u>Information Representative</u>" means the manages, directors, officers, employees, general partners, Affiliates, direct or indirect shareholders, members or limited partners, attorneys, accountants and other advisors, agents and representatives of a Member in each case, subject to customary confidentiality arrangements with such Persons regarding such information.

"<u>Initial Commitment</u>" has the meaning set forth in <u>Section 3.01(a)(i)</u>.

"<u>Initial Commitment Amount</u>" means an amount equal to the "Initial Commitment Amount" set forth opposite such Member's name on <u>Exhibit A</u>.

"<u>Initial Public Offering</u>" means an initial firm commitment underwritten public offering that is registered under the Securities Act of 1933 and which results in the equity interests of the IPO Entity being listed on the New York Stock Exchange or Nasdaq Stock Market.

"<u>Intellectual Property</u>" means any and all intellectual property rights throughout the world, whether registered or unregistered, including all: (a) patents and patent applications (including reissues, divisions, extensions, provisionals, continuations and continuations-in-part) and registered designs; (b) trade secrets, confidential or nonpublic proprietary information, know-how, inventions (whether patentable or not), proprietary processes, specifications, protocols and designs; (c) trademarks, service marks, trade dress, trade names, logos, slogans, business identifiers, brands, social media identifiers and related accounts, and any and all goodwill associated with and symbolized by the foregoing items (collectively, "<u>Marks</u>"); (d) Internet domain name registrations; (e) copyrights and other right in works of authorship and mask works; (f) software, databases and data sets; (g) moral rights and economic rights of authors and inventors and (h) all registrations, applications, issuances and extensions of any of the foregoing with any Governmental Body or domain name registrar.

"<u>In-Scope Catalogs</u>" has the meaning set forth in each of the Beethoven Topco LLC Agreements.

"<u>Interest</u>" means, collectively, the rights, entitlements, liabilities and obligations of each Member under this Agreement together with the membership units and any other limited liability company units or other Equity Securities of the applicable Beethoven Topcos (or all Beethoven Topcos in aggregate, as the context requires), including the Class A Units issued as of the Effective Date, and any Class A Units and any other class or series of limited liability company units that may be issued from time to time following the Effective Date in accordance with the terms of this Agreement and the applicable Beethoven Topco LLC Agreement (or all Beethoven Topco LLC Agreements in the aggregate, as the context requires).

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"<u>IPO Entity</u>" means any Beethoven Entity or any other Entity formed to facilitate the consummation of an Initial Public Offering or a registered public offering of indirect interests in the Beethoven Entities or all or substantially all of the assets of the Beethoven Entities and their Subsidiaries, taken as a whole.

"<u>IPO Initiating Person</u>" has the meaning set forth in <u>Section 4.04(a)</u>.

"<u>IPO Notice</u>" has the meaning set forth in <u>Section 4.04(a)</u>.

"<u>IRR</u>" shall mean an annually compounded internal rate of return calculated according to Microsoft Excel's X-IRR feature unless otherwise mutually agreed by the BCSS Member and the Warner Member. In determining the IRR, the following shall apply: (a) all distributions (other than Tax Advances) shall be deemed to have been made on the day on which such distributions were actually made; (b) all distributions shall be based on the amount distributed prior to the application of any United States federal, state, local or foreign taxation; (c) all Capital Contributions shall be deemed to have been made on the day on which such Capital Contributions were actually made; (d) the rates of return shall be per annum rates; (e) Tax Advances shall be deemed to have been made on the day on which such Tax Advances were set off against any subsequent distributions paid to a Member pursuant to <u>Section 5.02</u> (<u>provided</u>, <u>that</u>, the last sentence of <u>Section 5.05(b)</u> shall only apply with respect to subsequent distributions made pursuant to <u>Section 5.02(a)</u>); and (f) all amounts shall be calculated on an annually compounded basis and on the basis of a 365-day year.

"<u>IRR Threshold</u>" means, for purposes of a BCSS to Warner Sale contemplated by <u>Section 8.04</u>, the point in time at which the Class A-1 Members have actually received (and/or are deemed to have received based on the hypothetical distribution waterfall in respect of the BCSS Sale Interests in accordance with <u>Section 8.04</u> (based on the payment of the closing sale proceeds of such BCSS to Warner Sale) and as contemplated by the definition of "Fair Market Value") aggregate distributions of any nature ([\*\*\*]) from the Beethoven Topcos and their respective Subsidiaries representing an IRR equal to [\*\*\*] on all Capital Contributions made by the Class A-1 Members.

"<u>IRR Threshold Distribution Split</u>" has the meaning set forth in <u>Section 5.02(a)(iii)</u>.

"<u>IRS</u>" means the U.S. Internal Revenue Service.

"<u>Joinder Agreement</u>" has the meaning set forth in <u>Section 2.04</u>.

"<u>Legal Requirements</u>" means all foreign, federal, state or local laws, common laws, statutes, ordinances, executive orders, rules, regulations, orders, judgments, administrative orders, decrees, directives, administrative or judicial decisions and any other executive, legislative, regulatory or administrative proclamations, of any Governmental Body, to which the applicable Beethoven Entity, any Subsidiary thereof or any Member or its Affiliates is subject.

"<u>Liquidator</u>" has the meaning set forth in <u>Section 9.03(b)</u>.

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"<u>Liquidity Event</u>" has the meaning set forth in <u>Section 5.02(a)</u>.

"<u>Manager</u>" means a member of the Board in which exclusive operation and control of the business and affairs of the Beethoven Topcos shall be vested.

"<u>Management Reporting</u>" has the meaning set forth in <u>Section 11.04(a)(v)</u>.

"<u>Member</u>" means any Person admitted to the applicable Beethoven Topco as a "Member" from time to time in accordance with the terms of this Agreement and the applicable Beethoven Topco LLC Agreement and shall exclude (for the avoidance of doubt) any Person who ceases to be a Member pursuant to the terms set forth in the applicable Beethoven Topco LLC Agreement and this Agreement.

"<u>Member Nonrecourse Debt</u>" has the same meaning as the term "partner nonrecourse debt" set forth in Regulations Section 1.704-2(b)(4), determined with respect to the Beethoven Tax Partnership in its entirety.

"<u>Member Parties</u>" has the meaning set forth in Section <u>4.03(a)</u>.

"<u>Member Nonrecourse Debt Minimum Gain</u>" means an amount, with respect to each Member Nonrecourse Debt, equal to the Beethoven Tax Partnership Minimum Gain that would result if the Member Nonrecourse Debt were treated as a Nonrecourse Liability, determined in accordance with Regulations Section 1.704-2(i)(3).

"<u>Member Tag-Along Notice</u>" has the meaning set forth in <u>Section 8.05(b)</u>.

"<u>Member Tag-Along Right</u>" has the meaning set forth in <u>Section 8.05(a)</u>.

"<u>Member Tag-Along Transaction</u>" has the meaning set forth in <u>Section 8.05(a)</u>.

"<u>Music Publishing Business</u>" means the Subsidiaries and assets of WMG and its Affiliates constituting the music publishing segment, as defined in WMG's financial statements. At any point in time in which music publishing is not a reported segment of WMG or a successor entity thereof, "Music Publishing Business" shall refer to the business that was previously included in this segment by WMG.

"<u>Net Income</u>" and "<u>Net Loss</u>" means, for each Fiscal Year or other period, an amount equal to the Beethoven Tax Partnership's taxable income or taxable loss, for such Fiscal Year or period, determined on an aggregate basis across all of the Beethoven Entities and in accordance with Section 703(a) of the Code (for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to Section 703(a)(1) of the Code shall be included in taxable income or loss) with the following adjustments (without duplication):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;any income of the Beethoven Tax Partnership that is exempt from Federal income tax and not otherwise taken into account in computing Net Income or Net Loss pursuant to this paragraph, shall be added to such income or loss;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;any expenditures of the Beethoven Tax Partnership described in Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) of the Code expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Net Income or Net Loss pursuant to this paragraph, shall be subtracted from such taxable income or loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;in the event the Gross Asset Value of any Beethoven Tax Partnership asset is adjusted pursuant to clause (b) or (c) of the definition of "Gross Asset Value" herein, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Net Income or Net Loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;any gain or loss resulting from any disposition of Beethoven Tax Partnership property with respect to which gain or loss is recognized for Federal income tax purposes shall be computed by reference to the Gross Asset Value of the property disposed of, notwithstanding that the adjusted tax basis of such property differs from its Gross Asset Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;in lieu of depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year, computed in accordance with the definition of Depreciation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;to the extent an adjustment to the adjusted tax basis of any Beethoven Tax Partnership asset pursuant to Section 734(b) or Section 743(b) of the Code is required, pursuant to Regulations Section 1.704-1(b)(2)(iv)(m), to be taken into account in determining Capital Accounts, the amount of such adjustment shall be taken into account as gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the asset) from the disposition of such asset for purposes of computing Net Income or Net Loss; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;any items which are specially allocated pursuant to the provisions of <u>Section 6.03</u> shall not be taken into account in computing Net Income or Net Loss. The amounts of the items of Beethoven Tax Partnership income, gain, loss, or deduction available to be specially allocated pursuant to the provisions of <u>Section 6.03</u> shall be determined by applying rules analogous to those set forth in clauses (a) through (f) above.

"<u>Non-Partnership Representative Member</u>" means any current Member who, for the applicable tax period, is not the Partnership Representative.

"<u>Nonrecourse Liability</u>" has the meaning set forth in Regulations Sections 1.704-2(b)(3) and 1.752-1(a)(2), determined with respect to the Beethoven Tax Partnership in its entirety.

"<u>Non-Recourse Party</u>" means, with respect to a Member, any of such Member's former, current and future equityholders, directors, officers, employees, agents, representatives, Affiliates, members, managers, general or limited partners or assignees (or any former, current or future equityholder, director, officer, employee, agent, representative, Affiliate, member, manager, general or limited partner, successor or assignee of any of the foregoing) (in each case, except a Member).

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"<u>Officer</u>" has the meaning set forth in the applicable Beethoven Limited Liability Company Agreement.

"<u>Operating Company</u>" means a company that is actively engaged in, and has the infrastructure to support, signing new artists or songwriters.

"<u>Partnership Representative</u>" means, for each taxable year of the Beethoven Tax Partnership, a Person designated by, and that is affiliated with, the Member that is entitled to appoint a majority of the Managers pursuant to <u>Section 4.01</u> of this Agreement, to act in the capacity of the "partnership representative" (as such term is defined under the BBA Rules) of the Beethoven Tax Partnership and any Person as may be similarly designated by such partnership representative as the "designated individual" (as such term is defined under the BBA Rules) of the Beethoven Tax Partnership, and, in each case, any such similarly designated Person serving in any similar role, as applicable, within the meaning of the Code, the Regulations and applicable U.S. state, local or non-U.S. tax law.

"<u>Permitted Transfer</u>" has the meaning set forth in <u>Section 8.02</u>.

"<u>Permitted Transferee</u>" has the meaning set forth in <u>Section 8.02</u>.

"<u>Person</u>" means any individual or Entity and the successors in interest and permitted assigns of such Person.

"<u>Prime Rate</u>" means the highest prime rate of interest quoted from time to time by *The Wall Street Journal* as the "base rate" on corporate loans at large money center commercial banks. If *The Wall Street Journal* no longer publishes the "base rate", or the Board determines in good faith that the rate so published no longer accurately reflects an accurate determination of the prevailing prime rate, the Board may select a reasonably comparable source to use as the basis for the Prime Rate.

"<u>Prohibited Transferees</u>" has the meaning set forth in <u>Section 8.02(c)</u>.

"<u>Proposed Transferee</u>" has the meaning set forth in <u>Section 8.05(a)</u>.

"<u>Proposed Transferor</u>" has the meaning set forth in <u>Section 8.05(a)</u>.

"<u>Qualified Firm</u>" has the meaning set forth in <u>Section 8.04(a)(ii)</u>.

"<u>Regulations</u>" means the Federal tax regulations promulgated under the Code.

"<u>Remaining Commitment</u>" means, with respect to any Member, the amount, at any time of determination, by which such Member's Initial Commitment exceeds the total Capital Contributions previously made by such Member pursuant to <u>Section 3.01</u>.

"<u>Reserves</u>" means, on a quarterly basis, an aggregate amount across all of the Beethoven Entities of $1,000,000 *plus* the amount required to be maintained by the Beethoven Entities and their Subsidiaries by the terms of the Warehouse Facility or other definitive agreements

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governing the Indebtedness of the Beethoven Entities and/or their Subsidiaries and any amounts required to be maintained by the Beethoven Entities and their Subsidiaries in order to comply with applicable Legal Requirements, including Section 18-607 of the Delaware Act; <u>provided</u>, that the Reserves amount may be increased from time to time to the extent necessary or appropriate, as determined reasonably and in good faith by the Board, to satisfy when due, the bona fide liabilities and obligations of the Beethoven Entities and their Subsidiaries incurred not in breach of this Agreement or the applicable Beethoven Limited Liability Company Agreement (other than bona fide liabilities and obligations of the Beethoven Entities and their Subsidiaries in respect of a judgment or claim (but not settlements, which must be entered into in accordance with this Agreement or the applicable Beethoven Topco LLC Agreement) actually due and payable by the Beethoven Entities or their Subsidiaries in the reasonable good faith determination of the Board) so as to permit the Beethoven Entities and their Subsidiaries to satisfy such liabilities and obligations as they become due, determined after taking into account all sources of income and other sources of payment available to and reasonably be expected to be received by the Beethoven Entities or any Subsidiary thereof as well as known and contingent liabilities of the Beethoven Entities or their Subsidiaries.

"<u>Right of First Business Opportunity</u>" has the meaning set forth in <u>Section 4.03(b)</u>.

"<u>Sale of the Company</u>" means any (a) merger, consolidation or other business combination of, or other direct or indirect Transfer of the Interests in, the Beethoven Topcos (or Equity Securities of any of their Subsidiaries that alone or together represent all or substantially all of the Beethoven Entities' and their Subsidiaries' consolidated assets, taken as a whole) or any successor to any of the foregoing or other person owning or holding substantially all of the consolidated assets of the Beethoven Entities and their Subsidiaries, taken as a whole (a "<u>Successor Entity</u>"), including by virtue of the sale or disposition of interests in any Blocker Entity, in each case, that results in the owners of a majority of the Class A Units of the Beethoven Topcos (in the aggregate) ceasing to own, directly or indirectly, at least 50% of the Class A Units of the Beethoven Topcos (in the aggregate) (or the equity interests of any Subsidiary or Subsidiaries of the Beethoven Entities) or the equity interests of any such Successor Entity or, in the case of any merger, consolidation or other business combination, the surviving entity thereof, as applicable, immediately following the consummation of such transaction or series of related transactions or (b) other sale or other disposition in one or a series of related transactions of all or substantially all of the assets of the Beethoven Entities and their Subsidiaries, taken as a whole.

"<u>SEC</u>" means the United States Securities and Exchange Commission.

"<u>Securities</u>" means any shares of capital stock, limited partnership interests, limited liability company interests, warrants, options, bonds, notes, debentures and other equity and debt securities of whatever kind of any Person, whether readily marketable or not.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and any successor statute thereto and any rules and regulations promulgated thereunder, all as the same shall be in effect from time to time.

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"<u>Securitization Agents</u>" has the meaning set forth in Section <u>12.02(b)</u>.

"<u>Securitization Financing</u>" means a financing of the assets of the Beethoven Entities and their Subsidiaries in a bankruptcy-remote securitization structure designed to achieve investment grade ratings for the senior debt raised in such financing consistent (to the extent commercially reasonable) with precedent investment-grade rated music securitization transactions, and the proceeds of which will be used in whole or in part to refinance the initial debt financing obtained by the Beethoven Entities and their Subsidiaries. For the avoidance of doubt, the Securitization Financing may provide for joint and several liability, cross-borrowing, cross guarantees and cross collateralization across the Beethoven Entities.

"<u>Securitization Trigger</u>" has the meaning set forth in Section <u>12.02(a)</u>.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, limited liability company, partnership, association or other business entity of which (a) if a corporation, a majority of the total voting power of shares of stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or Controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination thereof and (b) if a limited liability company, partnership, association or other business entity (other than a corporation), a majority of the company, partnership or other similar ownership interests thereof is at the time owned or Controlled, directly or indirectly, by such Person or one or more Subsidiaries of such Person or a combination. Subsidiary shall also mean, with respect to the Beethoven Entities, each Beethoven Entity and each of their direct and indirect Subsidiaries. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership interest in a limited liability company, partnership, association or other business entity (other than a corporation) if such Person or Persons shall be allocated a majority of the limited liability company, partnership, association or other business entity gains or losses or shall be or Control any managing member, manager, general partner or similar Controlling Person, or shall have the right to elect a majority of the board of managers or similar body, of such limited liability company, partnership, association or other business entity.

"<u>Successor Entity</u>" has the meaning set forth in the definition of "Sale of the Company".

"<u>Tag-Along Participants</u>" has the meaning set forth in <u>Section 8.05(b)</u>.

"<u>Tag Interests</u>" has the meaning set forth in <u>Section 8.05(b)</u>.

"<u>Tax Advance</u>" has the meaning set forth in <u>Section 5.05(a)</u>.

"<u>Tax Indemnified Parties</u>" has the meaning set forth in <u>Section 5.04(e)</u>.

"<u>Tax Proceeding</u>" has the meaning set forth in <u>Section 7.03(e)</u>.

"<u>Tax Rate</u>" means the highest hypothetical combined Federal, state, and local tax rates for a corporate resident of New York City, New York (including any tax under Section 1411 of

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the Code) applicable to income and gain attributable to the Beethoven Tax Partnership, taking into account (where relevant) the holding period of assets held by the Beethoven Tax Partnership, the year in which such income or gain is recognized by the Beethoven Tax Partnership and the character of such income or gain.

"<u>Termination for Cause</u>" means the termination of the Administration Agreement pursuant to Section 1.2(a) thereof or termination of the Distribution Agreement pursuant to Section 10(b)(iii) thereof.

"<u>Transfer</u>" means, as a noun, any direct, indirect or synthetic transfer, sale, assignment, gift or other disposition and, as a verb, to directly or indirectly or synthetically, voluntarily or involuntarily, transfer, sell, assign, gift, or otherwise dispose of, including any transfer by operation of law, including by way of merger, reverse merger, consolidation, amalgamation, spin-off or other business combination or in connection with the enforcement of or foreclosure on any pledge, lien, encumbrance, mortgage or security interest, and any Transfer of equity Securities of an Entity that is owned by a Member and whose primary asset, directly or indirectly, is ownership of Interests in a Beethoven Topco, shall be deemed to constitute a "Transfer" of Interests. For the avoidance of doubt, no pledge, grant, encumbrance or other hypothecation of any Interests to a Back Leverage Lender, or the enforcement of or foreclosure on any pledge, lien, encumbrance, mortgage or security interest by a Back Leverage Lender shall be deemed a "Transfer" of Interests. The terms "<u>Transferee</u>", "<u>Transferor</u>" and other similar terms shall have correlative meanings.

"<u>Transferor Member</u>" has the meaning set forth in <u>Section 8.03</u>.

"<u>Transferor Tag Notice</u>" has the meaning set forth in <u>Section 8.05(b)</u>.

"<u>Unrestricted Subsidiary Cap</u>" means, with respect to each Beethoven Entity and each Subsidiary thereof, such Entity owning or holding assets constituting part of the Music Publishing Business in excess of ten percent (10.0%) of the total assets constituting the Music Publishing Business.

"<u>WMG</u>" means Warner Music Group Corp., a Delaware corporation.

"<u>Warehouse Facility</u>" means that certain credit and security agreement, dated as of June 29, 2025, by and among the Beethoven Financing Subsidiaries, the lenders party thereto, and The Bank of New York Melon as administrative agent and collateral agent, which such facility shall be secured by music assets owned by Beethoven Entities.

"<u>Warner Admin Parties</u>" has the meaning set forth in the definition of "<u>Administration Agreement</u>".

"<u>Warner Debt Documents</u>" means (a) that certain Credit Agreement, dated November 1, 2012, by and among the Warner Parent, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the other financial institutions and lenders from time to time party thereto (as such agreement may be amended, restated, amended and restated, modified or

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supplemented from time to time); (b) that certain Credit Agreement, dated January 31, 2018, by and among the Warner Parent, JPMorgan Chase Bank, N.A., as administrative agent and collateral agent, and the other financial institutions and lenders from time to time party thereto (as such agreement may be amended, restated, amended and restated, modified or supplemented from time to time); and (c) that certain Indenture, dated June 29, 2020, by and among Warner Parent, Wells Fargo Bank, National Association, a national banking association, as trustee, and JPMorgan Chase Bank, N.A., as notes authorized representative and collateral agent (as such indenture may be amended, restated, amended and restated, modified or supplemented from time to time).

"<u>Warner Exclusivity Period</u>" has the meaning set forth in Section <u>8.04(a)</u>.

"<u>Warner Exit Notice</u>" has the meaning set forth in <u>Section 8.04(b)</u>.

"<u>Warner Forced Sale</u>" has the meaning set forth in Section <u>8.04(b)(iv).</u>

"<u>Warner Forced Sale Period</u>" has the meaning set forth in Section <u>8.04(b)(iv).</u>

"<u>Warner Funding Default</u>" means both (a) the Warner Member or any of its Permitted Transferees fail to make a Class A Contribution as required by Section <u>3.01(b)</u> at a time when required to do so by a Capital Call that has not been withdrawn or cancelled by the Board and the Warner Member or its Permitted Transferees fail to cure such failure within twenty (20) Business Days after notice from the applicable Beethoven Topco or the BCSS Member of such failure (or such shorter time as may be required by such definitive agreement) and (b) the BCSS Member has delivered a written election to the Warner Member declaring such Warner Funding Default.

"<u>Warner Manager</u>" has the meaning set forth in <u>Section 4.01(a)(ii)</u>.

"<u>Warner Member</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Warner Observers</u>" has the meaning set forth in Section <u>4.01(e)(ii)</u>.

"<u>Warner Parent</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Warner Permitted Transferee</u>" has the meaning set forth in <u>Section 8.02(a)</u>.

"<u>Warner Sale Interests</u>" has the meaning set forth in <u>Section 8.04(b).</u>

"<u>Warner Services Agreement</u>" means that certain services agreement, by and among (a) Beethoven 1, Beethoven Holdings 1 and Beethoven Financing 1 and Warner Music Inc., dated as of the Effective Date, (b) Warner Music Inc. and a Beethoven Topco and its Subsidiaries, including the Beethoven Financing Subsidiaries, dated as of a future date, or (c) collectively, the Warner Services Agreements referred to in the foregoing clauses (a) and (b), in each case, as the context requires.

"<u>Warner Solo Funding Event</u>" has the meaning set forth in <u>Section 3.01(b)(ii)</u>.

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"<u>Warner to BCSS Definitive Agreement</u>" has the meaning set forth in <u>Section 8.04(b)(i)</u>.

"<u>Warner to BCSS Exchange Date</u>" has the meaning set forth in Section <u>8.04(b)(ii)</u>.

"<u>Warner to BCSS Sale</u>" has the meaning set forth in <u>Section 8.04(b)</u>.

"<u>Warner Value</u>" means the Fair Market Value as proposed by the Warner Member for the BCSS Sale Interests or the Warner Sale Interests, as applicable, in accordance with Section <u>8.04</u>.

**Article II<br>ORGANIZATION AND STRUCTURE**

<u>Section 2.01</u><u>Structure</u>. As of the Effective Date, (a) the BCSS Member and the Warner Member are Members of Beethoven 1 and party to the Beethoven 1 LLC Agreement, (b) Beethoven 1 is the sole member of Beethoven Holdings 1 and party to the Beethoven Holdings 1 LLC Agreement, and (c) Beethoven Holdings 1 is the sole member of Beethoven Financing 1 and party to the Beethoven Financing 1 LLC Agreement. From time to time, in accordance with the terms and conditions of this Agreement, the Members and Beethoven Topcos may form, in accordance with <u>Section 2.04</u>, additional Beethoven Entities, each of which shall be governed by limited liability company agreements that (i) in the case of Beethoven Topcos, have terms substantially identical to the Beethoven 1 LLC Agreement and provide each Member with substantially identical rights, entitlements, liabilities and obligations relative to those rights, entitlements, liabilities and obligations such Member has in the Beethoven 1 LLC Agreement and (ii) in the case of the Beethoven Financing Subsidiaries, have terms substantially identical to the Beethoven Financing 1 LLC Agreement and the Beethoven Holdings 1 LLC Agreement, and in respect of which the sole member of such Beethoven Financing Subsidiary, shall have substantially identical rights, entitlements, liabilities and obligations relative to those rights, entitlements, liabilities and obligations Beethoven 1 has, directly or indirectly, in the Beethoven Holdings 1 LLC Agreement and the Beethoven Financing 1 LLC Agreement. The Members acknowledge and agree that such rights, entitlements, liabilities and obligations in respect of the Beethoven Entities shall be determined on an aggregate basis across the entirety of the Beethoven Tax Partnership, consolidating each of the Beethoven Entities and their Subsidiaries, and which Beethoven Topcos shall otherwise be substantially identical and such Beethoven Financing Subsidiaries shall otherwise be substantially identical other than with respect to the individual assets held by each Beethoven Entity. The Members intend that each Beethoven Entity shall at all times qualify as an "Unrestricted Subsidiary" as defined in the Warner Debt Documents.

<u>Section 2.02</u><u>Purpose</u>. This Agreement, together with the limited liability company agreement of the applicable Beethoven Topco, is intended by the Members to serve as the "limited liability company agreement" of each such Entity for all purposes under the Delaware Act (for the avoidance of doubt, the "limited liability company agreement" of each Beethoven Financing Subsidiary or subsidiary thereof shall be the limited liability company of such entity and this Agreement shall not form a part thereof for all purposes under the Delaware Act). The purpose of this Agreement is to govern the affairs of each Beethoven Entity and the conduct of their respective businesses and to set forth the rules governing (a) when the Members will form additional Beethoven Entities, including Beethoven Topcos and Beethoven Financing Subsidiaries, and the process associated with doing so, and (b) the aggregation and disaggregation, as applicable, of certain rights, entitlements, liabilities and obligations across the Beethoven Entities as set forth more fully herein.

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<u>Section 2.03</u><u>Acquisition of In-Scope Catalogs by the Beethoven Entities</u>. Each Beethoven Entity shall have the right to acquire, or cause its Subsidiaries to acquire, In-Scope Catalogs in the manner and subject to the terms, conditions and obligations set forth in this Agreement and such Entity's limited liability company agreement; <u>provided</u>, that no Beethoven Entity or any Subsidiary thereof shall purchase In-Scope Catalogs if doing so would be reasonably likely to result in such Entity failing to qualify as an Unrestricted Subsidiary under the terms of the Warner Debt Documents, including if such acquisition would be reasonably likely to result in such Entity exceeding the Unrestricted Subsidiary Cap. If the prospective purchase of an In-Scope Catalog is expected to cause a Beethoven Entity or any of its Subsidiaries to exceed the Unrestricted Subsidiary Cap, the Members shall form one or more new Beethoven Entities to acquire all or a portion of such In-Scope Catalog to ensure that the Unrestricted Subsidiary Cap is not so exceeded. In addition, the Board may elect to re-allocate assets of the Beethoven Tax Partnership among the Beethoven Entities and their Subsidiaries in a manner such that no such Entity exceeds the Unrestricted Subsidiary Cap.

<u>Section 2.04</u><u>Formation of Subsequent Beethoven Entities and their Subsidiaries</u>. From time to time following the Effective Date, the Members shall form additional Beethoven Topcos, and shall cause the Beethoven Topcos to form additional Beethoven Financing Subsidiaries, in each case, by the filing of a Certificate of Formation with the Delaware Secretary of State substantially in the form attached hereto as <u>Exhibit B</u>, such that each Beethoven Topco and its Beethoven Financing Subsidiaries are structured in a manner consistent with the illustrative structure chart attached hereto as <u>Exhibit C</u>. Upon formation of additional Beethoven Entities, (a) each Beethoven Topco shall execute and deliver (i) a joinder agreement, substantially in the form attached hereto as <u>Exhibit D</u> to become party to this Agreement (a "<u>Joinder Agreement</u>"), (ii) a limited liability company agreement, substantially in the form attached hereto as <u>Exhibit E</u> (together with the Beethoven 1 LLC Agreement, the "<u>Beethoven Topco LLC Agreements</u>"), (iii) a Warner Services Agreement, substantially in the form attached hereto as <u>Exhibit F-1</u>, and (iv) a Bain Services Agreement, substantially in the form attached hereto as <u>Exhibit F-2</u>; (b) each Beethoven Financing Subsidiary shall execute and deliver (i) a Joinder Agreement to become party to this Agreement, (ii) a limited liability company agreement, substantially in the form attached hereto as <u>Exhibit G</u> (together with the Beethoven Financing 1 LLC Agreement and the Beethoven Holdings 1 LLC Agreement, the "<u>Beethoven Financing Subsidiary LLC Agreements</u>"), (iii) a Warner Services Agreement, (iv) a Bain Services Agreement, and (v) to the extent such Beethoven Financing Subsidiary is being formed for the purpose of owning or holding legal title to In-Scope Catalogs, (A) a Distribution Agreement, substantially in the form attached hereto as <u>Exhibit H</u>, (B) an Administration Agreement, substantially in the form attached hereto as <u>Exhibit I</u>, and (C) Commercial Agreement Side Letters, substantially in the form attached hereto as <u>Exhibit J</u>; and (c) the Members shall, as applicable, countersign and cause their respective Affiliates (as applicable) to countersign each such agreement described in the foregoing clauses (a) and (b) and deliver such countersigned copies to the Beethoven Entity that is party to such agreement.

<u>Section 2.05</u><u>Fiscal Year</u>. Unless otherwise required by the Code and applicable Regulations, the fiscal year of each Beethoven Entity shall end on September 30 unless otherwise determined from time to time by the Board (the "<u>Fiscal Year</u>") and the tax year of each Beethoven Entity shall be as determined from time to time by the Board.

<u>Section 2.06</u><u>No State Law Partnership</u>. The Members intend that the arrangements contemplated by this Agreement and the Beethoven Limited Liability Company Agreements not constitute or be deemed to be a state law partnership (including a limited partnership) or state law joint venture, and that no Member (or any Affiliate thereof) or Manager constitute or be deemed to be a partner, agent, or joint venturer of any other Member or Manager, for any purposes other than, as contemplated by <u>Section 7.05</u>, Federal, state, and local income tax purposes, and this Agreement shall not be construed, interpreted or applied to suggest otherwise.

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**Article III<br>CONTRIBUTIONS AND MEMBERS**

<u>Section 3.01</u><u>Capital Commitments</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)Initial Commitment 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;(i)As of the Effective Date, each Member has committed to make cash Capital Contributions in an aggregate amount across all of the Beethoven Topcos equal to the "Initial Commitment Amount" set forth opposite such Member's name on <u>Exhibit A</u> (such Member's "<u>Initial Commitment</u>"), which shall be used by the Beethoven Topcos or a Subsidiary thereof to fund the purchase of In-Scope Catalogs. In exchange for any Capital Contributions to a Beethoven Topco pursuant to the Initial Commitments, the Beethoven Topco receiving such Capital Contribution shall issue to the contributing Member, Class A Units of such Beethoven Topco (each, a "<u>Class A Contribution</u>") as set forth in this <u>Section 3.01</u> (and such Capital Contribution shall be reflected opposite such Member's name on <u>Exhibit A</u>, together with each of the Capital Contributions made by such Member across all Beethoven Topcos); [\*\*\*]. Notwithstanding anything to the contrary contained herein or in the Beethoven Limited Liability Company Agreements, following a Commitment Termination, a Termination for Cause or a Warner Funding Default, no Beethoven Entity or its Subsidiary will, and the Board shall cause the Beethoven Entities and their Subsidiaries not to, make any acquisitions of In-Scope Catalogs (other than those acquisitions already committed to in writing prior to such Commitment Termination, Termination for Cause or a Warner Funding Default). In the event of a Termination for Cause or a Warner Funding Default, the Remaining Commitments of each of the Warner Member and the BCSS Member shall terminate (which shall reduce their respective Remaining Commitments to zero ($0.00)) without any further action by either Member. No Member shall be required to make any Capital Contributions in excess of its Initial Commitment Amount. However, subject to Section 3.02(b) of the applicable Beethoven Topco LLC Agreement, the Members shall have the right (but not the obligation) to make additional Capital Contributions to one or more Beethoven Topcos beyond their respective Initial Commitment Amounts (which for the avoidance of doubt shall be considered Class A Contributions) upon the approval of the Board (which shall include at least one (1) BCSS Manager) and in compliance with the other terms and conditions set forth in this Agreement and the applicable Beethoven Topco LLC Agreement. For the avoidance of doubt, in no event shall any Member be obligated at any time to make any Capital Contribution in excess of its Remaining Commitment as of the time of such Capital Call taking into account any amounts required to be funded pursuant to then-outstanding Capital Calls. The provisions of this <u>Section 3.01</u> are intended solely to benefit the Members and, to the fullest extent permitted by applicable Legal Requirements, shall not be construed as conferring any benefit upon any creditor of any Beethoven Entity or any Subsidiary thereof, and no Member shall have any duty or obligation to any creditor of any Beethoven Entity or any Subsidiary thereof to make any additional Capital Contributions or to cause the Board of any Beethoven Entity to consent to the making of additional Capital Contributions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 and after the Effective Date, for each Class A Contribution made by a Member to a Beethoven Topco pursuant to this <u>Section 3.01</u>, such Beethoven Topco shall issue to such Member the number of Class A Units equal to the amount of such Class A Contribution *divided by* $1,000, unless another value therefor is determined by the Board (which shall include at least one (1) BCSS Manager) (and such issuance shall be reflected opposite such Member's name on <u>Exhibit A</u>, together with the number of Class A Units held by such Member across all Beethoven Topcos); <u>provided</u>, <u>that</u>, if (and only if) the Board proposes to issue Class A Units at a price per unit of $850 or less, such value is subject to the mutual agreement of the Members. If, following good faith discussions, the Members are unable to mutually agree on such proposed value or otherwise mutually agree on another value (which value as agreed by the

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Members would be the final price per Class A Unit), then within ten (10) Business Days of the initiation of such discussion, the Members shall mutually select one of the Qualified Firms to determine the price per Class A Unit; <u>provided</u> <u>further</u> that the value per Unit of each Class A-1 Unit and Class A-2 Unit shall be the same. The determination of the price per Class A Unit by such Qualified Firm shall be final and binding on the Members. Notwithstanding the foregoing, if the value of a Class A Unit is submitted to a Qualified Firm in accordance with the foregoing, the Board may nevertheless issue such Class A Units prior to the final determination of the Qualified Firm at the value initially determined by the Board, subject to adjusting the number of Class A Units so issued if the Qualified Firm determines that the value of a Class A Unit is different than such initial value. Any such Class A Units issued to the BCSS Member (or any of its Affiliates or its or their respective Transferees) shall be Class A-1 Units and any such Class A Units issued to the Warner Member (or any of its Affiliates or its or their respective Transferees) shall be Class A-2 Units.

&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>Capital Calls</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)From time to time prior to the earliest of the funding in full of all Initial Commitments, a Commitment Termination, a Termination for Cause or a Warner Funding Default, upon approval of the Board (subject to Section 3.02(b) of the applicable Beethoven Topco LLC Agreement), a Beethoven Topco may call for Class A Contributions from the Members of such Beethoven Topco for any purpose consistent with the Beethoven Topco's purposes as set forth in Section 2.05 of the applicable Beethoven Topco LLC Agreement (a "<u>Capital Call</u>"); <u>provided</u>, that, prior to issuing any Capital Call, the applicable Beethoven Topco and its Subsidiaries, including the Beethoven Financing Subsidiaries, shall be required, and the Board shall cause the applicable Beethoven Topco and its Subsidiaries, including the Beethoven Financing Subsidiaries, to use reasonable best efforts to utilize the maximum amount of funding available under the Warehouse Facility (or any refinancing thereof) for such purpose, and the amount of such Capital Call shall be limited to the amount of funds required for such purpose after utilizing the proceeds received pursuant to the Warehouse Facility (or any refinancing thereof). For the avoidance of doubt, Capital Calls shall only be issued by a Beethoven Topco in respect of the Initial Commitments, and any issuances of Interests in excess of such amounts shall be made subject to Section 3.03(a) in the Beethoven Topco LLC Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Capital Call shall be funded by the Members of the applicable Beethoven Topco by making a Class A Contribution equal to the product of (A) such Member's Funding Percentage and (B) the amount of such Capital Call; <u>provided</u>, that (1) each such Member shall be permitted to arrange for an entity which qualifies as a Permitted Transferee of such Member to fund any Capital Call on behalf of such Member, and in the event such entity is not an existing Member, such entity shall execute and deliver a joinder agreement to the applicable Beethoven Limited Liability Company Agreement and a Joinder Agreement to this Agreement, and any other documents that the Board may reasonably request in order to become a Member of the applicable Beethoven Topco and a party hereto and in order to reflect that such entity shall have made the requested Class A Contribution and shall have the rights and obligations of a Member of the applicable Beethoven Topco and a party hereto and (2) in the event no BCSS Manager of the applicable Beethoven Topco voted in favor of a particular Capital Call, the BCSS Member shall promptly (and in no event later than the earlier of two (2) Business Days following such vote and five (5) Business Days following the issuance of the applicable Capital Call Notice) notify the applicable Beethoven Topco and the Warner Member in writing that it does not intend to fund such Capital Call, and, at the Warner Member's sole discretion, following receipt of such notice from the BCSS Member, such Capital Call may be funded and a Class A Contribution equal to the total amount of such Capital Call may be made solely by the Warner Member solely if the full amount of such Capital Call is less than the then-remaining portion of the Warner Member's Initial Commitment (such event, a "<u>Warner Solo Funding Event</u>"); <u>provided</u>, <u>further</u>, that after any such Warner Solo Funding Event, the BCSS Member

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shall disproportionately fund future Capital Calls (other than Capital Calls that the BCSS Member is not obligated to, and does not, fund in accordance with this clause (2)) until such time when the BCSS Member and the Warner Member have made Class A Contributions in amounts that are *pro rata* to their relative Initial Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 validly approved Capital Call shall be made pursuant to a call notice, substantially in the form attached hereto as <u>Exhibit K</u> (each, a "<u>Capital Call Notice</u>"), executed by the applicable Beethoven Topco. Each Capital Call Notice shall specify (A) in reasonable detail the purpose of such Capital Call (which shall be a purpose consistent with the Beethoven Topco's purposes as set forth in Section 2.02 of the applicable Beethoven Topco LLC Agreement) and (B) the amount of the Class A Contributions to be made by each Member pursuant to such Capital Call. Each Member shall make the Class A Contribution required by it pursuant to a Capital Call Notice within twenty (20) Business Days after such Capital Call Notice is delivered to the Members unless all of the Members waive such minimum period by unanimous consent. The time periods specified in this <u>Section 3.01(b)(iv)</u> for making Class A Contributions shall be automatically extended to the extent necessary to obtain any required regulatory approvals as described in <u>Section 3.01(b)(v)</u>. The Board shall have the authority to withdraw any Capital Call Notice at any time prior to any required funding date set forth in such Capital Call Notice; <u>provided</u>, that if any Member has made a Capital Contribution in connection with such Capital Call prior to such withdrawal, the Capital Contribution shall, as promptly as practicable following such withdrawal, be returned to such Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)If any Member notifies the applicable Beethoven Topco or the Board of such Beethoven Topco determines within ten (10) Business Days after a Capital Call Notice is delivered to such Member that any regulatory approval or filing requiring the expiration of a waiting period is required prior to such Member making any Class A Contribution, then such Member shall not be required to make such Class A Contribution, and the Beethoven Topco shall not issue any Class A Units in respect of such Class A Contribution, until such approval has been obtained or such filing has been completed and any applicable waiting period has expired. The applicable Beethoven Topco and its Members shall use their commercially reasonable efforts to comply promptly with all applicable regulatory requirements related to obtaining such approvals and filings that any Member or the Board of such Beethoven Topco reasonably believes are required from time to time as a result of such Member's interest in the Beethoven Topco. The applicable Beethoven Topco shall bear all documented and reasonable fees and expenses, including all filing fees, incurred by its Members in connection with such compliance.

<u>Section 3.02</u><u>Interest Payments</u>. Except as otherwise expressly provided in this Agreement or in the applicable Beethoven Topco LLC Agreement, no interest shall be paid to any Member on any Capital Contributions. All Capital Contributions that are made in cash shall be denominated and payable in U.S. dollars.

<u>Section 3.03</u><u>Withdrawals</u>. Except as expressly provided elsewhere in this Agreement, including in <u>Article V</u> and <u>Article IX</u>, no Member shall have any right (a) to withdraw as a Member from the any Beethoven Topco so long as such Member continues to hold any Interests; (b) to withdraw from any Beethoven Topco all or any part of such Member's Capital Contributions; (c) to receive property other than cash in return for such Member's Capital Contributions; or (d) to receive any distribution from any Beethoven Entity.

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<u>Section 3.04</u><u>Capital Accounts</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)There shall be established and maintained for each Member a separate capital account (a "<u>Capital Account</u>"). There shall be added to the Capital Account of each Member (i) such Member's Capital Contributions; (ii) such Member's distributive share of Net Income and any item in the nature of income or gain that is specially allocated to such Member pursuant to <u>Section 6.03</u>; and (iii) the amount of any Beethoven Entity liabilities assumed by such Member or which are secured by any property distributed to such Member. There shall be subtracted from the Capital Account of each Member (A) the amount of any money, and the Gross Asset Value of any other property, distributed to such Member; (B) such Member's distributive share of Net Loss and any item in the nature of loss or expense that is specially allocated to such Member pursuant to <u>Section 6.03</u>; and (C) the amount of any liabilities of such Member assumed by the Beethoven Entities or which are secured by any property contributed by such Member to the Beethoven Entities and which are not otherwise taken into account in the determination of the Capital Contributions of such Member.

&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 foregoing provision and other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such Regulations. In determining the amount of any liability for purposes of this Section <u>3.04</u>, there shall be taken into account Section 752(c) of the Code and any other applicable provisions of the Code and Regulations. In the event that the Board shall determine that it is necessary or appropriate to modify the manner in which the Capital Accounts or any debits or credits thereto are maintained (including debits or credits relating to liabilities that are secured by contributed or distributed property or that are assumed by a Beethoven Entity or the Members), the Board may make such modification. In addition, the Board shall make any appropriate modifications in the event unanticipated events might otherwise cause this Agreement or the Beethoven Limited Liability Company Agreements not to comply with Regulations Section 1.704-1(b). The Capital Account balances of the Members shall be kept on the books and records of the Beethoven Entities and shall be updated from time to time by the Beethoven Entities to reflect any changes to any Member's Capital Account in accordance with the terms of this Agreement.

<u>Section 3.05</u><u>No Obligations for Other Members</u>. No Member or Affiliate of any Member shall have any liability or obligation, whether under <u>Article III</u>, <u>Article IX</u>, or otherwise, to make any Capital Contribution for or on behalf of any other party, it being the intent of the parties that all such Capital Contribution obligations are individual obligations of the relevant Members, and not joint or joint and several obligations of the Members.

<u>Section 3.06</u><u>No Deficit Restoration Obligation</u>. At no time during the term of the Beethoven Tax Partnership or upon dissolution and liquidation thereof or thereafter shall a Member with a negative balance in its Capital Account have any obligation to the Beethoven Tax Partnership, any Beethoven Entity, any Subsidiary thereof or the other Members to restore such negative balance, except as may be required by non-waivable provisions of applicable Legal Requirements.

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**Article IV<br>MANAGEMENT OF THE BEETHOVEN ENTITIES**

<u>Section 4.01</u><u>Management of the Beethoven Entities</u>. The management, operation and control of the business and affairs of each Beethoven Topco shall be vested exclusively in or under the direction of a Board.

&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)Prior to a Termination for Cause or Warner Funding Default, each Board shall be composed of five (5) Managers, and the composition of such Boards shall be 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)two (2) Managers designated by the BCSS Member (each, a "<u>BCSS Manager</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)three (3) Managers designated by the Warner Member (each, a "<u>Warner Manager</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)Following a Termination for Cause or Warner Funding Default, each Board shall be composed of seven (7) Managers, and the composition of such Boards shall be 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)four (4) BCSS Managers; 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)three (3) Warner Managers.

&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)Unless otherwise determined by the Board, the Beethoven Entities shall cause the board of directors or similar governing body of any Subsidiary of a Beethoven Entity to be member-managed or to have the BCSS Member and the Warner Member designate the directors or managers of such Subsidiary, as applicable, such that the composition of the Subsidiary board or similar governing body is directly proportionate to the composition of the Board.

&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)For the avoidance of doubt, the Boards of each Beethoven Topco shall at all times be comprised of the same individuals.

&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)<u>Observer Rights.</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 BCSS Member shall be entitled to (A) designate one (1) non-voting observer to each Board and to each committee of each Board, if any (the "<u>BCSS Observer</u>"); (B) remove, or cause the removal of, any individual serving as a BCSS Observer; (C) substitute any individual serving as a BCSS Observer with another individual; and (D) in the event of a vacancy caused by the resignation or other cessation of service of a BCSS Observer, appoint a new BCSS Observer to fill such vacancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Warner Member shall be entitled to (A) designate two (2) non-voting observers to each Board and to each committee of each Board, if any (the "<u>Warner Observers</u>" together with the BCSS Observer, the "<u>Board Observers</u>"); (B) remove, or cause the removal of, any individual serving as a Warner Observer; (C) substitute any individual serving as a Warner Observer with another individual; and (D) in the event of a vacancy caused by the resignation or other cessation of service of a Warner Observer, appoint a new Warner Observer to fill such vacancy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Board Observer shall be entitled to attend all meetings of the Board (and any committees thereof, if any) and receive the same notices and materials that are

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delivered to all directors or committee members, as applicable; <u>provided</u>, that a Board Observer may be excluded from meetings or a portion thereof, and materials may be withheld (or provided to the Board Observer in redacted form) to the extent (and only to the extent) that the Beethoven Topco's outside counsel determines in good faith that such exclusion, withholding or redaction is reasonably likely to be required (A) to preserve attorney-client privilege or (B) to avoid any circumstance where a Board Observer's participation would reasonably be determined to violate governmental regulations or applicable Legal Requirements.

<u>Section 4.02</u><u>Resignations; Board Vacancies; Removal</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)Each Manager shall hold his or her office until his or her death, disability, retirement, resignation or removal or until his or her successor shall have been duly elected and qualified. A Manager may resign at any time by giving written notice to such effect to the Board. Any such resignation shall take effect at the time of the receipt of such notice or any later effective time specified in such notice and, unless otherwise specified in such notice, the acceptance of the resignation shall not be necessary to make it effective.

&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)Subject to <u>Section 4.01</u>, (i) if any Warner Manager shall cease for any reason to serve as a Manager, the Warner Member shall have the sole right to cause the vacancy resulting thereby to be filled by another person designated by the Warner Member and (ii) if any BCSS Manager shall cease for any reason to serve as a Manager or if the number of BCSS Managers increases pursuant to <u>Section 4.01(b)(i)</u>, the BCSS Member shall have the sole right to cause the vacancy resulting thereby to be filled by another person designated by the BCSS Member.

&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)Any removal from a Board of any Warner Manager shall be only at the written request of the Warner Member and any removal from a Board of any BCSS Manager shall be only at the written request of the BCSS Member. Upon the removal of any Manager, such Manager shall cease to be a "manager" (within the meaning of the Delaware 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;(d)Each party hereto shall take all necessary action to carry out fully the provisions of <u>Section 4.01</u> and the foregoing provisions of this <u>Section 4.02</u> to ensure that each Board consists of the Managers that are duly appointed in accordance with such sections.

<u>Section 4.03</u><u>Business Opportunities; Competition</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)Subject to <u>Section 4.03(b)</u>, to the fullest extent permitted by applicable Legal Requirement, each Beethoven Entity, on behalf of itself and its Subsidiaries, each of the Managers and each of the Members, hereby renounces any interest, duty or expectancy of the Beethoven Entities and their Subsidiaries in, or in being offered an opportunity to participate in, business opportunities, potential economic advantages, relationships, transactions or investments ("<u>Business Opportunities</u>") that are from time to time presented to any Member, any Manager and any of their respective Affiliates (except the Beethoven Entities or any of its Subsidiaries) (the "<u>Member Parties</u>") even if the opportunity is one that any Beethoven Entity or its Subsidiaries might reasonably be deemed to have pursued or had the ability or desire to pursue if granted the opportunity to do so, and each Member Party shall have no duty to communicate or offer such Business Opportunity to any Beethoven Entity or any of its Subsidiaries and, to the fullest extent permitted by applicable Legal Requirement, shall not be liable, including to the Beethoven Entities or any of their Subsidiaries, for breach of any fiduciary or other duty, as a Manager or otherwise, by reason of the fact that such Member Party pursues or acquires such Business Opportunity, directs such Business Opportunity to another Person or fails to present such Business Opportunity, or information regarding such Business Opportunity, to the Beethoven Entities or any of their Subsidiaries. To the fullest extent permitted by law and notwithstanding any other provision of this Agreement (but subject to Section <u>7.06</u> and <u>Section</u> 

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<u>4.03(b)</u>) or in any agreement contemplated herein or applicable provision of law or equity or otherwise, except as the Board may otherwise agree in writing after the Effective 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)each Member Party will have the right: (A) to directly or indirectly engage in any business (including any business activities or lines of business that are the same as or similar to those pursued by, or competitive with, the Beethoven Entities or any of their Subsidiaries) or invest, own or deal in equity securities of any other Person so engaged in any business; (B) to directly or indirectly do business with any artist, songwriter, rightsholder, representative or other third party that does business with any Beethoven Entity or any of their Subsidiaries; and (C) not to present potential Business Opportunities to the Beethoven Entities or any of their Subsidiaries, and to pursue, directly or indirectly, any such Business Opportunity for itself, and to direct any such Business Opportunity to another 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)the Member Parties will have no duty (contractual or otherwise) to communicate or present any Business Opportunities to the Beethoven Entities or any of their Subsidiaries or to refrain from any actions permitted by Section <u>4.03(a)(i)</u>, and the Beethoven Entities, on their own behalf and on behalf of their Affiliates, hereby renounce and waive any right to require the Member Parties to act in a manner inconsistent with the provisions of this <u>Section 4.03(a)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)no Member Party shall be liable, including to the Beethoven Entities or any of their Subsidiaries, for breach of any duty (contractual or otherwise) by reason of any activities or omissions of the types referred to in this <u>Section 4.03(a)</u> or by reason of its participation therein.

&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)Subject to the last sentence of this clause (b), until the Initial Commitment Amounts have been fully funded, the BCSS Member and the Warner Member shall offer to the Beethoven Entities and their Subsidiaries the right of first opportunity to acquire, directly or indirectly, all or any part of any In-Scope Catalog where the direct or indirect acquisition of the In-Scope Catalog being considered by the applicable Member or its Affiliates (and the Beethoven Entities or their Subsidiaries pursuant to this <u>Section 4.03(b)</u>) (i) [\*\*\*]; and (ii) [\*\*\*] (the "<u>Right of First Business Opportunity</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;(c)During the [\*\*\*] from the time a Member offers the Beethoven Entities and their Subsidiaries the Right of First Business Opportunity, if the Beethoven Entities have determined to pursue such opportunity pursuant to <u>Section 4.03(b)</u>, (i) the Beethoven Entities and their Subsidiaries shall pursue such opportunity in good faith and will not take any actions, or refrain from taking any actions, concerning any such transaction with the primary intention of delaying or preventing the consummation of such transaction and (ii) the Warner Member and the BCSS Member will not take any actions or refrain from taking any actions, concerning such transaction with the primary intention of avoiding any of the Warner Member's or the BCSS Member's obligations under Section <u>4.03(b)</u>.

<u>Section 4.04</u><u>Initial Public Offering</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)In respect of an Initial Public Offering that has received approval by each Board and such approvals as may be required pursuant to Section 3.02(b) of the Beethoven Topco LLC Agreements or has been initiated pursuant to <u>Section 8.04(a)</u> or <u>Section 8.04(b)</u> the Board of each approving Beethoven Topco shall provide each Member a written notice (an "<u>IPO Notice</u>") that the Beethoven Entities have received a request to consummate an Initial Public Offering with respect to the Beethoven Tax Partnership. Following receipt of an IPO Notice, the Beethoven Entities and the Members shall use their reasonable best efforts to effect the Initial Public Offering as promptly as practicable following the receipt of the IPO Notice, and the IPO Entity shall be obligated to draft, submit and file a registration statement and amendments thereto

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on the applicable form and enter into customary agreements (on terms and conditions reasonably determined by the Board or the Members, as applicable (the "<u>IPO Initiating Person</u>")), to effect the Initial Public Offering. The IPO Initiating Person shall have the right to control and direct the Initial Public Offering process, including by selecting the underwriters (and their roles) in connection with the Initial Public Offering. Each Member shall keep each other Member reasonably informed and allow such Member to reasonably participate in connection with the Initial Public Offering process.

&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)Notwithstanding anything to the contrary contained herein, in connection with an Initial Public Offering, and upon the request of the IPO Initiating Person, as applicable, each of the Members hereby agrees that it will, at the expense of the IPO Entity, take such action and execute such documents, including a customary registration rights agreement, as may reasonably be necessary to effect the Initial Public Offering, including taking all such actions and executing such documents as may be reasonably necessary to form or create the IPO Entity and to effect the Initial Public Offering and, upon the request of a Member holding its Interest through a Blocker Entity, each of the Members hereby agrees that it will take such action and execute such documents as may reasonably be necessary to merge or contribute such Blocker Entity into the IPO Entity in a tax-free transaction prior to the consummation of the Initial Public Offering. Furthermore, the Members will cooperate to structure an Initial Public Offering as tax-efficiently as possible, including through the use of an "Up-C" structure, and any amounts paid under a so-called "tax receivables agreement" or similar agreement shall be shared *pro rata* among the Members in proportion to the amount each such Member would receive under <u>Section 9.03</u> at the time of the Initial Public Offering if the Beethoven Tax Partnership were to liquidate at such time (and the proceeds therefrom were distributed to the Members pursuant to <u>Section 5.02(a)</u>). In connection with forming, creating or continuing the IPO Entity, the IPO Initiating Person in its sole discretion and acting alone, and without the need for any action or consent of any other Person, may, as applicable, take any and all actions reasonably necessary or advisable to create and implement the Initial Public Offering, including: (i) merging, converting or consolidating the Beethoven Entities or any Subsidiary thereof into each other or into a new IPO Entity; (ii) transferring, domesticating or otherwise moving the Beethoven Entities, any Subsidiary thereof or the IPO Entity to another jurisdiction; (iii) assigning or transferring assets between Beethoven Entities in order to form a single IPO Entity; and (iv) taking such other steps as it deems necessary or advisable to create a suitable vehicle to be the IPO Entity and otherwise to facilitate the consummation of the Initial Public Offering, including, at the request of a Member, merging or contributing its Blocker Entity into the IPO Entity, in each case for the purpose of an offering of equity Securities of the IPO Entity for sale to the public in the Initial Public Offering. In connection with such Initial Public Offering, each Member shall be entitled to receive common stock of, or similar equity interests in, the IPO Entity or a related operating partnership with an economic value equal to the value (if any) that such Member would be entitled to receive on account of such Member's Interests if the Beethoven Tax Partnership was liquidated pursuant to <u>Section 9.03</u> (and the proceeds therefrom were distributed to the Members pursuant to <u>Section 5.02(a)</u>) at an implied aggregate equity valuation equal to the implied aggregate equity valuation of the IPO Entity in the Initial Public Offering based on the gross offering price (before underwriters' discounts, commissions or similar fees) of the shares of common stock of, or similar equity interests in, the IPO Entity as set forth on the cover page of the final prospectus relating to the Initial Public Offering.

&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)If requested by the representative of the underwriters in connection with any underwritten Initial Public Offering, each Member hereby agrees not to sell or otherwise transfer or dispose of (except in accordance with exceptions, which shall include customary exceptions, agreed to by the representative of the underwriter or underwriters) any shares of common stock of, or similar equity interests in, the IPO Entity (except for any shares of common stock of, or similar equity interest in, the IPO Entity that are included in such registration statement) during the one hundred eighty (180)-day period following the effective date of a

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registration statement of the IPO Entity filed under the Securities Act or such shorter period as may be agreed by the representatives of the underwriters (such periods are subject to extension on customary terms if required by the representative of the underwriters to take into account the issuance or potential issuance of research or similar reports); <u>provided</u> that such agreement is subject to all executive officers and directors of the IPO Entity entering into similar agreements. If requested by the representative of the underwriters, the IPO Entity and the Members shall execute a separate agreement to the foregoing 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;(d)Notwithstanding anything contained herein to the contrary, if the managing underwriter(s) of any underwritten Initial Public Offering advise(s) the IPO Entity and the Members selling shares of common stock or similar equity interests in the IPO Entity, in writing, that the aggregate number of shares of common stock or similar equity interests to be sold by the IPO Entity and such Members requested to be included in the Initial Public Offering exceeds the number of shares of common stock or similar equity interests that can be sold in such Initial Public Offering or that the number of shares of common stock or similar equity interests proposed to be included in any registration statement would adversely affect the price per share of the common stock or similar equity interests to be sold in such Initial Public Offering, then the aggregate number of shares of common stock or similar equity interests to be sold by the IPO Entity and common stock or similar equity interests to be sold by the Members shall be reduced to the amount recommended by such managing underwriter(s). Such reduction shall be achieved by, first, reducing, or eliminating if necessary, the shares of common stock or similar equity interests to be sold by the IPO Entity for its own account and then, if necessary, reducing the number of shares of common stock or similar equity interests requested to be included by the Members *pro rata* based on the number of shares of common stock or similar equity interests requested to be included in such Initial Public Offering; <u>provided</u> that the number of shares of common stock or similar equity interests to be sold by the Members shall not be reduced unless all other securities are first entirely excluded from the underwriting.

&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 connection with the Initial Public Offering, the IPO Entity shall pay all customary registration and offering expenses incurred, regardless of whether the registration statement is declared effective or such offering is completed, including: (i) all registration and filing fees; (ii) fees and expenses of compliance with securities or "blue sky" laws (including reasonable fees and disbursements of counsel in connection with blue sky qualifications of the common stock or similar equity interests to be sold in such Initial Public Offering); (iii) printing, duplicating, word processing, messenger, telephone, facsimile and delivery expenses (including expenses of printing certificates for the common stock or similar equity interests to be sold in such Initial Public Offering in a form eligible for deposit with The Depository Trust Company and of printing prospectuses, supplements or amendments relating to any registration statement); (iv) internal expenses of the IPO Entity (including all salaries and expenses of its officers and employees performing legal or accounting duties in connection with such Initial Public Offering); (v) the fees and expenses incurred in connection with the listing of the common stock or similar equity interests to be sold in such Initial Public Offering; (vi) the fees and disbursements of legal counsel for the IPO Entity and customary fees and expenses for independent certified public accountants retained by the IPO Entity, including in connection with the preparation of comfort letters, and any transfer agent and registrar fees; (vii) the reasonable fees and disbursements of one (1) legal counsel for the BCSS Member and one (1) legal counsel for the Warner Member, in each case, to the extent participating in such Initial Public Offering; (viii) all applicable rating agency fees with respect to the common stock or similar equity interests to be sold in such Initial Public Offering; (ix) any reasonable fees and disbursements of underwriters customarily paid by issuers or sellers of securities; (x) all expenses related to the "road-show" for the Initial Public Offering, including all reasonable travel, meals and lodging expenses; (xi) the reasonable fees and expenses of any special experts retained by the IPO Entity in connection with such registration statement and Initial Public Offering; and (xii) any other fees and disbursements customarily paid by the issuers of securities. The IPO Entity shall have

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no obligation to pay any transfer taxes or underwriting, brokerage or other similar fees, discounts or commissions attributable to the sale of common stock or similar equity interests to be sold by the Members in such Initial Public Offering (which expenses shall be borne by the Members) or, except for the fees and disbursements described in clause (vii) or (x) above, out-of-pocket expenses borne by the Members or the underwriters.

&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)Notwithstanding anything to the contrary contained herein, <u>Section 8.07</u> shall apply to any Initial Public Offering.

<u>Section 4.05</u><u>Budgets</u>. No later than July 31 (or such other date determined by the Board) of each year starting in 2025, each Beethoven Topco shall deliver to its Board a business plan and budget for such Beethoven Topco and its Subsidiaries, including the Beethoven Financing Subsidiaries, for the following Fiscal Year for such Board's approval; [\*\*\*].

**Article V<br>DISTRIBUTIONS**

<u>Section 5.01</u><u>Distributions Generally</u>. Except as otherwise expressly set forth in this <u>Article V</u>, and subject to the limitations on distributions set forth in this Agreement and any limitations imposed by applicable Legal Requirements, including Section 18-607 of the Delaware Act, or any contract or agreement binding on any Beethoven Entity or its Subsidiaries, the Members shall be entitled to receive distributions, when and as determined by the Board of each Beethoven Topco (subject to this <u>Section 5.01</u>, <u>Section 5.02</u> and <u>Section 5.05</u>), out of funds of the Beethoven Entities legally available therefor.

<u>Section 5.02</u><u>Distribution Priority</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)Subject to <u>Section 5.02(b)</u>, the Beethoven Topcos shall, and shall cause their respective Subsidiaries to, unless otherwise mutually agreed by the BCSS Member and the Warner Member, distribute to the Members, all Available Cash or other non-cash consideration generated with respect to the Beethoven Tax Partnership from any liquidation, sale of assets, issuance of securities, sale of securities, Sale of the Company, Initial Public Offering, or other similar transaction by the Beethoven Topcos or their Subsidiaries, including the Beethoven Financing Subsidiaries (each, a "<u>Liquidity Event</u>"), in each case, promptly following the consummation thereof, which, for the avoidance of doubt, shall, in each case, be net of any transaction expenses incurred by or on behalf of the Beethoven Topcos or their Subsidiaries, including the Beethoven Financing Subsidiaries, in connection with such Liquidity Event, solely 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*first,* to the Class A-1 Members, on a *pro rata* basis based on their relative Capital Contribution Percentages, until each Class A-1 Member has received in respect of each of its Class A-1 Units 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)*second*, to the Class A-2 Members, on a *pro rata* basis based on their relative Capital Contribution Percentages, until the Class A-2 Members have received an aggregate amount equal to [\*\*\*]; 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)*thereafter,* subject to the last sentence of this <u>Section 5.02(a)</u>, to the Class A-1 Members and the Class A-2 Members, *pro rata* based on their relative Capital Contribution Percentages.

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Notwithstanding <u>Section 5.02(a)(iii)</u>, solely for purposes of calculating "Fair Market Value" in connection with a BCSS to Warner Sale contemplated by <u>Section 8.04</u>, <u>Section 5.02(a)(iii)</u> shall be modified as follows:

&nbsp;&nbsp;&nbsp;&nbsp;"(iii)&nbsp;&nbsp;&nbsp;&nbsp;*thereafter*, to the Class A-1 Members and the Class A-2 Members, *pro rata* based on their relative Capital Contribution Percentages until such time as the IRR Threshold is met or deemed to have been met in accordance with the definition thereof and, at and after such time, [\*\*\*] to the Class A-1 Members and [\*\*\*] to the Class A-2 Members (the "<u>IRR Threshold Distribution Split</u>").

[\*\*\*].

<u>Section 5.03</u><u>Distributions of Securities</u>. The Board of each Beethoven Topco is authorized to make distributions to the Members as permitted by this Agreement and such Beethoven Topco's LLC Agreement in the form of Securities or other property received or otherwise held by the applicable Beethoven Topco; <u>provided</u>, that, in the event of any such non-cash distribution, such Securities or other property shall be valued at the fair market value (as determined by the Board) and shall be distributed to the Members in the same proportion that cash received upon the sale of such Securities or other property at such fair market value would have been distributed pursuant to <u>Section 5.02</u>.

<u>Section 5.04</u><u>Withholding Tax Payments and Obligations</u>. In the event that withholding or other taxes are paid or required to be paid on behalf of a Member in respect of amounts distributed by any Beethoven Topco or paid to any Beethoven Entity, or income or gain allocated by, the Beethoven Tax Partnership, such payments or obligations shall be treated 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;(a)<u>Payments to the Beethoven Entities</u>. If any Beethoven Topco or any Subsidiary thereof, including any Beethoven Financing Subsidiary, receives proceeds or allocations in respect of which a tax has been withheld or paid in respect of any Member, such Beethoven Topco or such Subsidiary, as applicable, shall be treated as having received cash in an amount equal to the amount of such tax, and, for all purposes of this Agreement, subject to <u>Section 5.04(d)</u>, each Member shall be deemed to have received a distribution pursuant to <u>Section 5.02</u> equal to the portion of such tax allocable to such Member, as determined by the Board taking into account the rights and entitlements of each Member in respect of the Beethoven Tax Partnership under this Agreement and each Beethoven Limited Liability Company 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;(b)<u>Payments by the Beethoven Entities</u>. The Beethoven Topcos and each of their Subsidiaries, including the Beethoven Financing Subsidiaries, are authorized to withhold from any payment made to, received in respect of, or any distributive share of, a Member, any taxes required by applicable Legal Requirements to be withheld, and in such event, subject to <u>Section 5.04(d)</u>, such taxes shall be treated as if an amount equal to such withheld taxes had been paid to the Member in respect of its Interests rather than paid over to the applicable taxing authority.

&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)<u>Overwithholding</u>. No Beethoven Topco, any Subsidiary thereof, including any Beethoven Financing Subsidiary, any Manager, any Officer or any employee of any Beethoven Entity or any Subsidiary thereof shall be liable for any excess taxes withheld in respect of any Member's Interest, and, in the event of overwithholding, a Member's sole recourse shall be to apply for a refund from the appropriate Governmental Body.

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&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)<u>Certain Withheld Taxes Treated as Demand Loans</u>. Any taxes withheld pursuant to <u>Section 5.04(a)</u> or <u>Section 5.04(b)</u> shall be treated as if distributed to the relevant Member to the extent an amount equal to such withheld taxes would then be distributable to such Member and, to the extent in excess of such distributable amounts, as a demand loan payable by the Member to the applicable Beethoven Topco withholding such amounts with interest on demand at the lesser of (i) the Prime Rate in effect from time to time *plus* two percent (2%), compounded quarterly, and (ii) the highest rate per annum permitted by law. The Board may either demand payment of the principal and accrued interest on such demand loan at any time, and enforce payment thereof by legal process, or may withhold from one or more distributions to a Member amounts sufficient to satisfy such Member's obligations under any such demand 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;(e)<u>Indemnity</u>. In the event that any Beethoven Topco, any Subsidiary thereof, including any Beethoven Financing Subsidiary, any Manager, any Officer or any employee of any Beethoven Entity or any Subsidiary thereof (the "<u>Tax Indemnified Parties</u>") becomes liable as a result of a failure to withhold or remit taxes in respect of, or with respect to any Imputed Underpayment Amount allocable to, any Member, then, unless such liability arises out of the gross negligence or willful misconduct of any such Person, without limiting (but without duplication of) any indemnification obligation of such Member under <u>Article IV</u> of any Beethoven Topco LLC Agreement, such Member shall, to the fullest extent permitted by law, indemnify, defend and hold harmless the applicable Tax Indemnified Parties in respect of all taxes, including interest and penalties, and any reasonable expenses incurred in any examination, determination, resolution and payment of 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;(f)<u>Tax Forms</u>. Each Member shall have delivered a duly completed and executed IRS Form W-9 to each other Member as of the Effective Date or, in connection with the admission of a new Member under this Agreement, as of the date of such new Member's admission.

&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)<u>Survival</u>. The provisions contained in this <u>Section 5.04</u> shall survive the termination of this Agreement, the Beethoven Limited Liability Company Agreements, and the Beethoven Tax Partnership, as well as the Transfer of any Interest and the withdrawal of any Member.

<u>Section 5.05</u><u>Tax Advances</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)If, with respect to any Member for any Fiscal Year (i) an amount equal to the income allocated to such Member pursuant to this Agreement (or a good faith estimate thereof) in respect of such Fiscal Year, *multiplied by* the Tax Rate, exceeds (ii) the aggregate amount of cash distributions or expected cash distributions to such Member in respect of such Fiscal Year pursuant to <u>Section 5.02</u>, each Beethoven Topco shall, and shall cause their respective Subsidiaries to, solely to the extent of Available Cash at such Beethoven Topco and its respective Subsidiaries, and unless and to the extent the Board reasonably determines in good faith that such action would render such Beethoven Entities insolvent (in which event the Board of each other Beethoven Topco shall make such adjustments as may be necessary to permit Tax Advances from such other Beethoven Topcos and their respective Subsidiaries without rendering such other Beethoven Topcos and their respective Subsidiaries insolvent to give effect to this <u>Section 5.05</u>), is restricted by the Warehouse Facility, would be in violation of the Delaware Act, or the Warner Member and the BCSS Member otherwise mutually agree, make an advance (a "<u>Tax Advance</u>") to such Member in an amount up to the aggregate excess tax liability of such Member computed on the basis of the Tax Rate at such times as is necessary in order to permit the Member to pay taxes on its share of the Beethoven Tax Partnership's taxable income (including quarterly estimated taxes of such Member). If the amount of the Tax Advance made pursuant to this <u>Section 5.05</u> is less than the aggregate excess tax liability of the Members, any

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Tax Advance made pursuant to this <u>Section 5.05</u> shall be made to all the Members in proportion to their respective shares of the excess tax 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;(b)All Tax Advances made to a Member in respect of any period beginning on or following the Effective Date shall be treated as an advance against, and thus reduce, the amount of the next succeeding distribution or distributions which would otherwise have been paid to such Member pursuant to <u>Section 5.02</u>. To the extent that an amount otherwise distributable to a Member is so applied, it shall be treated for all purposes hereof (except for purposes of this <u>Section 5.05</u>) as if such amount had actually been distributed to such Member pursuant to <u>Section 5.02(a)(iii)</u>.

**Article VI<br>ALLOCATIONS**

<u>Section 6.01</u><u>General Application</u>. Except as explicitly provided elsewhere herein, Net Income or Net Loss (and, as may be necessary or appropriate, items thereof), as applicable, for a Fiscal Year or other applicable period shall be allocated among the Members in a manner such that, after giving effect to the special allocations set forth in <u>Section 6.03</u>, the Capital Account of each Member immediately after making such allocation is, as nearly as possible, equal (proportionately) to (a) the distributions that would be made to such Member pursuant to <u>Section 9.03(c)</u> if the Beethoven Tax Partnership were dissolved, its affairs wound up and its assets sold for cash equal to their Gross Asset Values, all Beethoven Tax Partnership liabilities were satisfied (limited in the case of each Nonrecourse Liability to the Gross Asset Value of the assets securing such liability) and the net assets of the Beethoven Entities were distributed in accordance with <u>Section 9.03(c)</u> to the Members immediately after making such allocations *minus* (b) such Member's share of Beethoven Tax Partnership Minimum Gain and Member Nonrecourse Debt Minimum Gain, computed immediately prior to the hypothetical sale of assets. The Board shall be entitled to adjust the allocations of Net Income and Net Loss to take into account any of the economic provisions of this Agreement, including the timing and amount of actual distributions to the Members; <u>provided</u> that any such adjustment shall not affect the amount distributable to a Member pursuant to this Agreement.

<u>Section 6.02</u><u>Loss Limitation</u>. Notwithstanding anything to the contrary in <u>Section 6.01</u>, the amount of items of the Beethoven Tax Partnership's expense and loss allocated pursuant to <u>Section 6.01</u> to any Member shall not exceed the maximum amount of such items that can be so allocated without causing such Member to have an Adjusted Capital Account Deficit at the end of any Fiscal Year or other applicable period, unless each Member would have an Adjusted Capital Account Deficit. All such items in excess of the limitation set forth in this <u>Section 6.02</u> shall be allocated first to Members who would not have an Adjusted Capital Account Deficit *pro rata* in proportion to their Capital Account balances, adjusted as provided in clauses (a) and (b) of the definition of Adjusted Capital Account Deficit, until no Member would be entitled to any further allocation, and thereafter, to all Members *pro rata* based on their respective Capital Contribution Percentages.

<u>Section 6.03</u><u>Special Allocations</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)<u>Regulatory Compliance</u>*.* The provisions of <u>Section 3.04</u>, <u>Section 6.01</u>, <u>Section 6.02</u> and the other provisions of this Agreement relating to the maintenance of Capital Accounts are intended to comply with Regulations Section 1.704-1(b) and shall be interpreted and applied in a manner consistent with such Regulations. In furtherance of the foregoing, Section 704 of the Code and the Regulations thereunder, including the provisions of such Regulations addressing qualified income offset, minimum gain chargeback requirements and

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allocations of deductions attributable to nonrecourse debt and partner nonrecourse debt (as defined in Regulations Section 1.704-2(b)(4)), are hereby incorporated by reference.

&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>Modification of Allocations</u>. The allocations set forth in <u>Section 6.01</u>, <u>Section 6.02</u> and this <u>Section 6.03</u> are intended to comply with certain requirements of the Regulations. Notwithstanding the other provisions of this <u>Article VI</u>, the Board shall be authorized to make, in its reasonable discretion, appropriate amendments to the allocations of Net Income and Net Loss pursuant to this Agreement (i) in order to comply with Section 704 of the Code or applicable Regulations; (ii) to allocate properly Net Income and Net Loss to those Members that bear the economic burden or benefit associated therewith; or (iii) to otherwise cause the Members to achieve the objectives underlying this Agreement as reasonably determined by the Board. If there are any changes after the date of this Agreement in applicable tax law, regulations or interpretation, or any errors, ambiguities, inconsistencies or omissions in this Agreement with respect to allocations to be made to Capital Accounts which would, individually or in the aggregate, cause the Members not to achieve in any material respect the economic objectives underlying this Agreement, the Board may in its discretion make appropriate adjustments to such allocations in order to achieve or approximate such economic objectives.

<u>Section 6.04</u><u>Transfer of Membership Interests</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)In the event of a Transfer of all or a portion of any Member's Interests (in accordance with the provisions of this Agreement and each Beethoven Topco LLC Agreement), the admission of an additional Member (in accordance with the provisions of this Agreement and each Beethoven Topco LLC Agreement) or any other event which constitutes a "variation" within the meaning of Section 706 of the Code, Net Income, Net Losses and Beethoven Tax Partnership tax items shall be determined by the Board using any permissible method under Section 706 of the Code and the Regulations 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;(b)A Transferee of all or a portion of any Member's Interests (in accordance with the provisions of this Agreement) shall succeed to the Capital Account of the Transferor in respect of such Interest (or part thereof) and all distributions in respect of such transferred Interest (or part thereof) shall take into account distributions previously made to the Transferor in respect of such Interest (or part thereof) such that the aggregate distributions made in respect of such Interest (or part thereof) shall be the same as if no Transfer occurred.

<u>Section 6.05</u><u>Tax Allocations</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)For Federal, state and local income tax purposes, items of income, gain, loss, deduction and credit shall be allocated to the Members in accordance with the allocations of the corresponding items for Capital Account purposes under <u>Section 6.01</u> and <u>Section 6.03</u>, except that items with respect to which there is a difference between tax and book basis will be allocated in accordance with Section 704(c) of the Code and the Regulations thereunder and Regulations Section 1.704–1(b)(4)(i) in a manner determined by the Board. The tax allocations made pursuant to this <u>Section 6.05</u> shall be solely for tax purposes and shall not affect any Member's Capital Account or share of non-tax allocations or distributions 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;(b)All tax credits shall be allocated among the Members in the same manner as allocations of Net Income and Net Loss pursuant to <u>Section 6.01</u>.

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**Article VII<br>TAX MATTERS**

<u>Section 7.01</u><u>Consistency</u>. Without the permission of the BCSS Member and the Warner Member, except as may otherwise be required by applicable Legal Requirements based on the advice of such Member's tax counsel or tax auditors, no Member shall take a position on any tax return or other filing with any tax authority (or court) with respect to a partnership item that is inconsistent with the Beethoven Tax Partnership's treatment of such item on its tax return or request an administrative adjustment under Section 6227 of the Code with respect to a partnership item of the Beethoven Tax Partnership.

<u>Section 7.02</u><u>Tax Returns</u>. The Board, at the expense of the Beethoven Entities collectively, shall endeavor to cause the preparation and timely filing (including extensions) of (a) all tax returns required to be filed by or with respect to the Beethoven Tax Partnership pursuant to the Code and (b) all other required tax returns in each jurisdiction in which the Beethoven Tax Partnership or the Beethoven Entities or their Subsidiaries, as applicable, is required to file. As soon as reasonably possible after the end of each Fiscal Year, but in no event later than ninety (90) days following the end of such Fiscal Year, the Board shall cause to be delivered to each Person who was a Member at any time during such Fiscal Year, such information with respect to the Beethoven Tax Partnership as may be reasonably necessary for the preparation of such Person's Federal, state and local income tax returns for such Fiscal Year.

<u>Section 7.03</u><u>Representation of the Beethoven Tax Partnership in Tax Matters</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)Each Member hereby agrees to cooperate to provide any information or take such other actions as may be reasonably requested by the Partnership Representative in order to (i) determine whether any "imputed underpayment" within the meaning of Section 6225 of the Code (and any similar amount under analogous provisions of any foreign, state, local or other law) paid (or payable) by the Beethoven Tax Partnership as a result of an adjustment with respect to any Beethoven Tax Partnership item, including any interest or penalties with respect to any such adjustment and any costs or expenses related thereto (collectively, an "<u>Imputed Underpayment Amount</u>"), may be modified pursuant to Section 6225(c) of the Code or any corresponding provision of applicable foreign, state, local or other law and (ii) obtain any such modification identified by the Partnership Representative; <u>provided</u> that a Member (or former Member) shall not be required to file amended tax returns or undertake the alternative "pull-in" procedure in accordance with Section 6225(c)(2) of the Code (or any similar provisions under foreign, state, local or other law), without the advance written consent of such Member (or former Member).

&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 provisions of this <u>Section 7.03</u> and a Member's obligation to comply with this <u>Section 7.03</u> shall survive any liquidation and dissolution of the Beethoven Tax Partnership and each Beethoven Entity and the Transfer, assignment or liquidation of such Member's Interest (or any portion 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;(c)The Partnership Representative shall reasonably consult with the Board as to how to conduct any tax audit, adjustment or other proceeding and whether to make any material election under the BBA Rules. In its capacity as Partnership Representative, the Partnership Representative shall have the right to make on behalf of the Beethoven Tax Partnership any and all elections and take any and all actions that are available to be made or taken by the Partnership Representative or the Beethoven Tax Partnership under the BBA Rules, subject to the provisions of this Agreement (including <u>Section 7.03(a)</u>), <u>provided</u>, that (i) any action under the BBA Rules, other than actions described in clause (ii) below, that would reasonably be expected to have a material adverse effect on any Non-Partnership Representative

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Member shall require the prior approval of such Non-Partnership Representative Member (not to be unreasonably withheld, conditioned or delayed) and (ii) the Members agree that the Partnership Representative shall be permitted to cause the Beethoven Tax Partnership to timely elect the application of Section 6226 of the Code (or any similar provisions under foreign, state, local or other law) with respect to any Imputed Underpayment 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;(d)If, in connection with an audit by the Internal Revenue Service or any other taxing authority, the Beethoven Tax Partnership becomes subject to an Imputed Underpayment Amount and the Partnership Representative makes an election under Section 6226(a) of the Code (or any corresponding provision of foreign, state, local or other law) to treat a "partnership adjustment" as an adjustment to be taken into account by each Member in accordance with Section 6226(b) of the Code (or any corresponding provision of foreign, state, local or other law), then each such Member shall take such adjustment into account and any other corresponding action as required under Section 6226(b) of the Code (or any corresponding provision of foreign, state, local or other law), and each Member shall be liable for any related interest, penalty, addition to tax, or additional amounts, whether or not such Member then owns any Interest. If the Partnership Representative makes the election described in the preceding sentence, then any Member that fails to properly report its share of such adjustments on its tax return shall indemnify and hold harmless the Beethoven Tax Partnership, each Beethoven Entity and the other Members against any tax, interest, or penalties collected by the Internal Revenue Service (or other such taxing authority) from the Beethoven Tax Partnership or any Beethoven Entity as a result of the Member's failure. If the Partnership Representative does not make the foregoing election, then any Imputed Underpayment Amount shall be borne by each applicable Member in accordance with its allocable share of such Imputed Underpayment Amount (determined based on the provisions of this Agreement, the characteristics of such Member, and taking into account any available adjustments to the Imputed Underpayment Amount associated with such Member under Section 6225(c) of the Code), and such amount shall be treated for all purposes of this Agreement as if it were, and recovered by the Beethoven Tax Partnership and the Beethoven Entities in the same manner as, a withholding tax under <u>Section 5.04(d)</u>. To the extent that an Imputed Underpayment Amount relates to a former Member, the Board may require a former Member to pay to the applicable Beethoven Entities to which the audit relates an amount equal to its allocable portion of the Imputed Underpayment Amount. Notwithstanding the foregoing, if the Board determines that seeking a payment from a former Member has failed, the Partnership Representative may require the substituted Member that acquired the former Member's Interest associated with such Imputed Underpayment Amount to pay such amount (in accordance with <u>Section 5.04(d)</u>) or to treat such amount as a Beethoven Tax Partnership expense allocated between the Beethoven Entities by the Board.

&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 Partnership Representative shall keep the Board and the Non-Partnership Representative Members informed as to the progress of any examinations, audits or other proceedings (each, a "<u>Tax Proceeding</u>"). In addition, the Partnership Representative shall (i) provide written notice to the Non-Partnership Representative Members within forty-five (45) days of receipt of any written notice that involves a Tax Proceeding, (ii) keep the Non-Partnership Representative Members reasonably informed with respect to the status of such Tax Proceeding, including by giving the Non-Partnership Representative Members advance notice of, and opportunity to attend, any in-person or telephonic meetings and (iii) provide copies to each Member of any written correspondence or other submissions received from a taxing authority with respect to such Tax Proceeding.

&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 provisions contained in <u>Section 7.01</u> and this <u>Section 7.03</u> shall survive the termination of this Agreement, the Beethoven Limited Liability Company Agreements and the Beethoven Tax Partnership, the Transfer of any Interest and the withdrawal of any Member.

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<u>Section 7.04</u><u>Accounting Methods; Elections</u>. The Board shall determine the accounting methods and conventions to be used in the preparation of the Beethoven Tax Partnership's tax returns and shall cause the Beethoven Tax Partnership to make any and all elections under the tax laws of the United States and any other relevant jurisdictions as to the treatment of items of income, gain, loss, deduction and credit of the Beethoven Tax Partnership, or any other method or procedure related to the preparation of the Beethoven Tax Partnership's tax returns. At the request of either of the BCSS Member or the Warner Member, the Board shall cause the Beethoven Tax Partnership and each of the Beethoven Entities to maintain an election under Section 754 of the Code (and a corresponding election under state and local law). Each Member agrees to provide the Beethoven Entities with any information reasonably necessary for the Beethoven Tax Partnership to comply with Section 734, Section 743 or Section 754 of the Code.

<u>Section 7.05</u><u>Partnership Status</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)Except in connection with an Initial Public Offering, the Members intend, and the Beethoven Entities shall take no position inconsistent with, treating the Beethoven Tax Partnership as a partnership for Federal, state and local income and franchise tax purposes and each Beethoven Entity as a disregarded entity of such partnership, with the Beethoven Tax Partnership resulting therefrom composed of the rights, entitlements, liabilities and obligations set forth in this Agreement and each Beethoven Limited Liability Company Agreement. In furtherance of the foregoing, and except in connection with an Initial Public Offering, (i) an IRS Form SS-4 shall be prepared reflecting the status of the Beethoven Tax Partnership as a tax partnership, (ii) no election shall be made, pursuant to Regulations Section 301.7701-3(c), for the Beethoven Tax Partnership to be treated as an entity other than a partnership (or any Beethoven Entity as other than a disregarded entity of the Beethoven Tax Partnership) or, pursuant to Section 761(a) of the Code, to be excluded from the provisions of subchapter K of the Code, (iii) this Agreement, together with the Beethoven Limited Liability Company Agreements, shall be treated as the "partnership agreement" within the meaning of Section 761 of the Code governing the Beethoven Tax Partnership for all such purposes, and (iv) each Beethoven Entity shall be treated as a disregarded entity of the Beethoven Tax Partnership within the meaning of Regulations Section 301.7701-3(b)(ii) for all such 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;(b)To ensure that Interests are not traded on an established securities market within the meaning of Regulations Section 1.7704-1(b) or readily tradable on a secondary market or the substantial equivalent thereof within the meaning of Regulations Section 1.7704-1(c), notwithstanding anything to the contrary contained in this Agreement and except in connection with an Initial Public Offering, (a) no Member shall participate in the establishment of any such market or the inclusion of Interests thereon, and (b) no Beethoven Entity shall recognize or approve any Transfer made on any such market or that would result in the Interests being traded on any such market.

<u>Section 7.06</u><u>Confidentiality</u>. Each Member agrees, and shall cause any current or former Manager designated by it and its Authorized Representatives, to keep confidential, and not to disclose to any Person or use for any purpose (other than a purpose relating to or in furtherance of the business interests of the Beethoven Tax Partnership, the Beethoven Entities and their Subsidiaries, the compliance with any Member's (or its Affiliates') legal, regulatory, tax or other compliance obligations, the monitoring, administration or taking of any other action with respect to a Members' (or its Affiliates') investment in the Beethoven Topcos, or to the enforcement, defense or understanding of any rights or obligations under this Agreement or other instrument relating to the Beethoven Entities and their Subsidiaries), any matter relating to the Beethoven Tax Partnership, any Beethoven Entity or any of their Subsidiaries, or any of the Members (including information received pursuant to this <u>Article VII</u>), or their respective businesses, operations or affairs (other than disclosure to the managers, directors, officers,

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employees, general partners, Affiliates, direct or indirect shareholders, members or limited partners, financing sources, attorneys, accountants and other advisors, agents and representatives of such Member in each case, subject to customary confidentiality arrangements with such Persons regarding such information (each such Person being hereinafter referred to as an "<u>Authorized Representative</u>")); <u>provided</u>, that such Member or any of its Authorized Representatives may make such disclosure to the extent that (a) the information being disclosed is in connection with such Member's tax returns or to the extent such disclosure is necessary to minimize or eliminate any tax; (b) such disclosure is to other Members; (c) the information being disclosed is otherwise generally available to the public other than through a breach of this <u>Section 7.06</u> or was received from a third party that, to the applicable Member's knowledge, does not owe a duty or obligation of confidentiality to the Beethoven Entities or any Subsidiary thereof; (d) such disclosure is requested by any Governmental Body having jurisdiction over such Member, any such Authorized Representative or any of their respective Affiliates; <u>provided</u> that such disclosure shall be limited to the greatest extent practicable and such Person seeking to make such disclosure shall seek to obtain from such Governmental Body a confidentiality or similar agreement or protective order with respect to the information to be disclosed; (e) such disclosure, based upon the advice of legal counsel of such Member or Authorized Representative, is otherwise required of such Member or Authorized Representative or their respective Affiliates by applicable Legal Requirements or the rules of any stock exchange; or (f) in the case of a Member, such disclosure is being made to (i) any prospective member, partner, financing sources, shareholder or investor (including any Transferee of an Interest or Class A Units) or any attorneys, accountants or other advisors, agents and representatives thereof, or (ii) any Person that is considering a *bona fide* acquisition of the Beethoven Entities or any Subsidiary thereof or any of their respective properties or assets, <u>provided</u> that disclosure shall only be permitted under this clause (f), in the case of a Member, if any such Person to whom disclosure is to be made is subject to customary confidentiality arrangements with respect to the information to be disclosed to it hereunder or has a duty to maintain the confidentiality thereof. Notwithstanding anything to the contrary herein, the BCSS Member and its Affiliates may provide general information regarding this Agreement, the Beethoven Limited Liability Company Agreements and the transactions contemplated hereby and thereby to their respective existing or prospective limited partners and investors in connection with their and their Affiliates' typical fundraising or reporting activities, in each case, subject to customary confidentiality arrangements with such Persons regarding such information. Prior to making any disclosure described in clause (d) or (e) of this <u>Section 7.06</u>, unless otherwise prohibited from doing so under applicable Legal Requirements, the Member proposing to make (or whose Affiliate proposes to make) such disclosure shall notify the Board thereof. Each Member shall use all reasonable efforts to cause and shall instruct each of its Authorized Representatives to comply with the obligations of such Member under this <u>Section 7.06</u>. In connection with any disclosure described in clauses (d) or (e) above, the disclosing Member shall cooperate with the Beethoven Entities in seeking a confidentiality or similar agreement, a protective order or such other appropriate arrangement with respect to the information to be disclosed as the Board may reasonably request. In the event there is in place any other confidentiality or non-disclosure agreement between or among any of the Beethoven Entities, the Members, or any Affiliates thereof, such agreement(s) shall continue to apply and shall remain in full force and effect in accordance with their terms. Notwithstanding anything to the contrary contained herein, the obligations of each Member under this <u>Section 7.06</u> shall survive for a period of two (2) years following the earlier to occur of (x) the termination of this Agreement and (y) the termination of such Member's status as a Member.

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**Article VIII<br>TRANSFERS**

<u>Section 8.01</u><u>Transfers of Interests</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)Except in accordance with applicable provisions of this Agreement, including <u>Section 8.02</u>, <u>Section 8.03</u>, <u>Section 8.04</u>, <u>Section 8.05</u> and <u>Section 8.06</u>, no Member shall Transfer all or any portion of such Member's Interests (including the Class A Units) in any Beethoven Topco without the prior written consent of each of the BCSS Member and the Warner Member.

&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)Notwithstanding anything to the contrary contained herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Member shall Transfer any of its Interests at any time if such Transfer would (as determined reasonably by the Board of such Beethoven Topco), (A) cause any Beethoven Entity to be taxable as a "publicly traded partnership" under the Code or otherwise cause material and adverse tax consequences to the Beethoven Entities or any of their Subsidiaries, including the Beethoven Financing Subsidiaries or any Member (unless such Transfer is in connection with an Initial Public Offering); (B) constitute a violation of any Federal or state securities or blue sky Legal Requirements or a breach of the conditions to any exemption from registration of the Interests under any such laws or a breach of any undertaking or agreement of a Member entered into pursuant to such laws or in connection with obtaining an exemption thereunder; (C) constitute a violation of any other Legal Requirement applicable to any Beethoven Entity or any of its Subsidiaries, including the Beethoven Financing Subsidiaries, that would have a material adverse effect on such Beethoven Entity and its Subsidiaries, including the Beethoven Financing Subsidiaries; (D) be to a Person that (or any of the beneficial owners of which) is listed on the Specially Designated or Blocked Persons List maintained by Office of Foreign Assets Control or any other lists of terrorists or terrorist organizations maintained and made publicly available by any Governmental Body; (E) result in material and adverse consequences to any Beethoven Entity or its Subsidiaries, including the Beethoven Financing Subsidiaries, from a regulatory perspective; or (F) violate the terms of the Warehouse Facility or any other documents governing the Indebtedness of any Beethoven Entity or its Subsidiaries, including the Beethoven Financing Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Member shall Transfer any of its Interests in any Beethoven Topco unless such Member and each of its Permitted Transferees collectively Transfers its Interests *pro rata* from each Beethoven Topco to which it is a Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 equityholders of the Beethoven Topcos (including their Permitted Transferees) must become party to this Agreement by executing a Joinder Agreement; 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)no direct Transfer of any Interests shall be effective unless and until the Member proposing to make such Transfer has delivered documentation to the Board sufficient to establish, in the Board's reasonable, good faith discretion, that the Transfer will not give rise to any obligation of the Beethoven Tax Partnership to withhold pursuant to Section 1446(f)(4) of the Code and the Regulations 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;(c)Any purported Transfer of Interests of any Member that is not in compliance with this Agreement and each Beethoven Topco LLC Agreement shall be null and void *ab initio* and of no force and effect whatsoever. Furthermore, the Member engaging or attempting to engage in such Transfer shall indemnify and hold harmless each Beethoven Entity and each of the other Members from all losses that such indemnified Persons may incur

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(including incremental tax liability and legal fees and expenses) in connection with the invalid Transfer, including in enforcing the provisions of this Agreement. The bankruptcy of a Member or any other event resulting in the withdrawal of any Member from a Beethoven Topco shall (in each case) not cause a dissolution of such Beethoven Topco.

&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)Upon the request of any Member proposing to Transfer its Interests to a non-Affiliate transferee other than a Prohibited Transferee, subject to the execution by such transferee of a confidentiality agreement on customary terms that is reasonably acceptable to the Board, the Beethoven Topcos shall, and shall cause their Subsidiaries, including the Beethoven Financing Subsidiaries, to use commercially reasonable efforts to provide due diligence information regarding the Beethoven Topcos and their Subsidiaries, including the Beethoven Financing Subsidiaries, and participate in a reasonable number of due diligence sessions regarding the Beethoven Topcos and their Subsidiaries, including the Beethoven Financing Subsidiaries; <u>provided</u>, that the foregoing assistance shall (i) be during normal business hours, upon reasonable advance notice and in a manner that does not unreasonably interfere with the conduct of the business of the Beethoven Topcos and their Subsidiaries, including the Beethoven Financing Subsidiaries; (ii) be at the sole expense of the Member proposing to Transfer its Interests (with such expenses to be undertaken directly by such Member); and (iii) not require (A) a breach of any contractual arrangement, (B) disclosure of any information if such disclosure (1) would be reasonably likely to jeopardize the attorney-client privilege or (2) is prohibited by Legal Requirements, or (C) any agreement to amend any contract, including this Agreement.

<u>Section 8.02</u><u>Permitted and Prohibited Transfers</u>. The provisions of <u>Section 8.01(a)</u> shall not apply to the following Transfers of Interests effected by a Member in accordance with, and subject to the conditions of, this <u>Section 8.02</u> and the other provisions of this <u>Article VIII</u> (each, a "<u>Permitted Transfer</u>" and any Transferee of Interests pursuant to a Transfer effected in accordance with, and subject to the conditions of, this <u>Section 8.02</u> and the other provisions of this <u>Article VIII</u>, a "<u>Permitted Transferee</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)As applied to the Warner Member, to an Affiliate (whether foreign or domestic and including any bona fide investment fund or investment vehicle that is an Affiliate) of such Member which is, and remains at all times (i) wholly-owned; or (ii) majority-owned and Controlled; or (iii) in the case of a publicly traded company, a bona fide investment fund or an investment vehicle, otherwise Controlled, in each case, by the ultimate parent Entity (or Entities) of such Member (or any successor thereto) (any of the foregoing, a "<u>Warner Permitted Transferee</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)As applied to the BCSS Member, to (i) an Affiliate (whether foreign or domestic and including any bona fide investment fund or investment vehicle that is managed by Bain Capital or its Affiliates), (ii) any other investment fund, vehicle or similar entity that is, and remains at all times, Controlled by or under common Control with (A) the BCSS Member; (B) an Affiliate of the BCSS Member; or (C) an entity, or an Affiliate of an entity, that manages or controls the BCSS Member, (iii) any Back Leverage Lender and (iv) any Person to which the Interests are Transferred in connection with the good faith exercise of any remedies in connection with any Back Leverage, including foreclosure, sale or other Transfer of the Interests by such Back Leverage Lender (any of the foregoing, a "<u>BCSS Permitted Transferee</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;(c)[\*\*\*].

<u>Section 8.03</u><u>Permitted Transfer Procedures</u>. In connection with any Permitted Transfer under <u>Section 8.02</u>, the Transferor Member shall provide written notice to each Beethoven Topco and each other Member of such a Transfer not less than five (5) Business Days prior to effecting such Transfer, which notice shall state the name and address of each Permitted Transferee to whom such Transfer is proposed to be made, the relationship of such Permitted Transferee to

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such Transferor Member and the number and class of Interests proposed to be Transferred to such Permitted Transferee. In the event that any Person that holds any Interests as a Permitted Transferee of any Transferor Member pursuant to <u>Section 8.02(b)</u> ceases to satisfy the requirements of this Agreement such that such Person would not be a "Permitted Transferee" under the terms of this Agreement, such Person shall promptly Transfer to such original Member or another Permitted Transferee all Interests held by such person in a manner that complies with <u>Section 8.01(b)</u>. A Permitted Transferee of Interests pursuant to <u>Section 8.02(a)</u> or <u>(b)</u> may Transfer its Interests pursuant to this <u>Section 8.03</u> only to the Member who Transferred such Interests to the Permitted Transferee (the "<u>Transferor Member</u>") or to a Person that would be a Permitted Transferee of such Transferor Member at the time of such subsequent Transfer.

<u>Section 8.04</u><u>Liquidity Right and Right of First Offer</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)Following the [\*\*\*], the BCSS Member shall notify the Beethoven Entities and the Warner Member thereafter if at any time it intends to exit its investment in the Beethoven Topcos (the "<u>BCSS Exit Notice</u>"). [\*\*\*]. During the [\*\*\*] immediately following the Warner Member's receipt of the BCSS Exit Notice (the "<u>Warner Exclusivity Period</u>"), the BCSS Member and the Warner Member shall negotiate exclusively with one another in good faith regarding the potential sale of all (and not less than all) of the BCSS Member's Interests (the "<u>BCSS Sale Interests</u>") to the Warner Member (such sale, a "<u>BCSS to Warner Sale</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)If during the Warner Exclusivity Period, the Warner Member and the BCSS Member come to an agreement regarding the terms of the BCSS to Warner Sale (including the Fair Market Value of the BCSS Sale Interests, which, for the avoidance of doubt, shall be calculated for purposes of a BCSS to Warner Sale under this <u>Section 8.04(a)</u> in accordance with the definition of "Fair Market Value" and the applicable terms of <u>Section 5.02(a)</u>, including the IRR Threshold Distribution Split), [\*\*\*].

&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>Section 8.05</u><u>Member Tag-Along Right</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)Prior to an Initial Public Offering, in each case, subject to prior compliance with <u>Section 8.04</u>, if any Member (for purposes of this <u>Section 8.05</u>, such Member is referred to as the "<u>Proposed Transferor</u>") desires to Transfer all or any portion of its Interests to any Person or Persons (excluding any Transfer to a Permitted Transferee) (such transaction, a "<u>Member Tag-Along Transaction</u>" and for purposes of this <u>Section 8.05</u>, such Person or Persons is referred to as the "<u>Proposed Transferee</u>") and such Transfer is otherwise permitted by the terms of this <u>Article VIII</u>, each other Member shall have the right (the "<u>Member Tag-Along Right</u>"), but not the obligation, to sell Interests to the Proposed Transferee for the same form of consideration as the Proposed Transferor up to the amount that would be payable to such Member by the Proposed Transferee if the aggregate amount payable in the Member Tag-Along Transaction were to be distributed in accordance with <u>Section 5.02</u>; <u>provided</u>, that (i) if the consideration includes any rights to receive any deferred consideration, earn-out or escrow funds that later are paid to the selling Members in connection with the proposed transaction, the foregoing calculation under <u>Section 5.02</u> shall be re-calculated at such time to include such amounts as and when received and such amounts should be distributed to give effect thereto, and (ii) if any portion of the consideration includes securities, each selling Member shall receive cash and securities in equal proportions relative to the cash and securities received by the other selling 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;(b)In connection with any proposed transaction subject to the Member Tag-Along Right, the Proposed Transferor shall give each other Member a written notice, which

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notice shall specify (i) the number and class of Interests proposed to be Transferred (the "<u>Tag Interests</u>") and (ii) the aggregate purchase price to be paid by the Proposed Transferee for the Tag Interests, terms of payment and other material terms and conditions of the Proposed Transferee's offer, including the name of the Proposed Transferee and the proposed Transfer date, which may not be less than thirty (30) days after delivery of the transfer notice (the "<u>Transferor Tag Notice</u>"). Each Member shall have the right to exercise the Member Tag-Along Right by providing notice (a "<u>Member Tag-Along Notice</u>") to the Proposed Transferor of its election to exercise such right within ten (10) Business Days of the date on which such Member receives the Proposed Transferor's notice of the proposed transaction subject to the Member Tag-Along Right, which notice shall set forth the number of Interests that such Member wishes to include in the Member Tag-Along Transaction (such Members submitting a Member Tag-Along Notice, the "<u>Tag-Along Participants</u>"). Each Member that does not provide notice to the Proposed Transferor of its election to exercise the Member Tag-Along Right by the tenth (10th) Business Day following the date on which such Member received the notice thereof from the Proposed Transferor shall be deemed to have waived such Member's Member Tag-Along Right with respect to such transaction. If one or more Members deliver a Member Tag-Along Notice pursuant to this <u>Section 8.05</u>, then the Proposed Transferee will not be obligated to, directly or indirectly, purchase a number of Interests exceeding that set forth in the Transferor Tag Notice, and in the event such Proposed Transferee elects to purchase, directly or indirectly, less than all of the additional Interests sought to be Transferred by the Proposed Transferor and the Tag-Along Participants, the number of Interests to be Transferred by the Proposed Transferor and each of the Tag-Along Participants shall be reduced based on the Proposed Transferor's and each Tag-Along Participant's respective pro rata ownership of the Interests sought to be Transferred by the Proposed Transferor and each of the Tag-Along Participants.

&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)Each Tag-Along Participant shall execute and deliver such instruments of conveyance and transfer and take such other action, including executing any purchase agreement, escrow agreement or related documents, as may be reasonably required by the Proposed Transferor or the Beethoven Tax Partnership in order to carry out the terms and provisions of this <u>Section 8.05</u>; <u>provided</u>, that (i) any representations and warranties or indemnities given by the Tag-Along Participants or the Proposed Transferor shall be several and not joint; (ii) neither the Tag-Along Participants nor the Proposed Transferor shall be required to give any representations, warranties or indemnities with respect to any consents or approvals required under any contracts or agreements binding on the Beethoven Entities or any Subsidiary thereof, including the Beethoven Financing Subsidiaries, (as opposed to consents or approvals under contracts or agreements binding on such Member and its Affiliates) (but without limiting its proportional share of liability in respect of representations, warranties, covenants or agreements made by the Beethoven Entities with respect to such matters, whether pursuant to indemnification provisions or otherwise, including any such liability supported by an escrow or other fund to which the holder of Interests are required to contribute in connection with any such transaction); (iii) no Tag-Along Participant shall be required to give any representations, warranties or indemnities with respect to the Beethoven Entities or any Subsidiary thereof, including the Beethoven Financing Subsidiaries, with respect to any matters with respect to which the Proposed Transferor is not giving representations, warranties and indemnities or to give more extensive representations, warranties or indemnities with respect to any matters than those given by the Proposed Transferor; (iv) to the extent any Member is required to provide indemnification in connection with a Member Tag-Along Transaction, without the consent of such Member, no Member shall be required to provide any indemnification that would result in any liability for such indemnification for such Member that exceeds such Member's gross proceeds from such transaction (excluding liability for breach of representations regarding (A) such Member's authority to sell; (B) the Interests to be Transferred by such Member being free and clear of any liens, claims or encumbrances (other than restrictions imposed pursuant to applicable Federal, state and foreign securities laws); and (C) such Member being the sole record and beneficial owner of such Interests); and (v) no Member shall be required to agree to any covenants

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regarding non-competition or non-solicitation of any business relationships to the extent such restriction would apply to such Member or its Affiliates. At the closing of the proposed transaction, each Tag-Along Participant shall deliver, against receipt of the consideration payable in such Member Tag-Along Transaction, all or the applicable portion, as applicable, of the Interests which such Tag-Along Participant owns, together with executed instruments of transfer reasonably acceptable to the Proposed Transferor.

&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)For the avoidance of doubt, in connection with any Transfer with respect to which a Member has a Member Tag-Along Right and the right to exercise a right of first offer pursuant to <u>Section 8.04</u>, such Member shall (i) first have the right to exercise its rights pursuant to <u>Section 8.04</u> and (ii) if such Member does not exercise its rights pursuant to <u>Section 8.04</u>, pursuant to this <u>Section 8.05</u>, as such Member may elect.

<u>Section 8.06</u><u>Drag-Along Right</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)If the BCSS Member or the Warner Member (in such capacity, the "<u>Drag-Along Member</u>") decides to effect a Sale of the Company pursuant to <u>Section 8.04</u> (any such Transfer, a "<u>Drag-Along Sale</u>") in a single transaction or in a series of related transactions, then the Drag-Along Member may require each other Member to, subject to compliance with <u>Section 8.04</u>, (i) if structured as a sale of Interests, sell its Interests or, (ii) if structured as a merger, consolidation or sale or other disposition of all or substantially all of the assets of the Beethoven Tax Partnership and its Subsidiaries, including the Beethoven Financing Subsidiaries, taken as a whole, in each case, vote (and cause any Managers appointed by each other Member to vote) in favor of such transaction; <u>provided</u>, that the Drag-Along Member shall receive cash for their Interests and the terms and conditions of such proposed Transfer applicable to any Member holding any Interests (other than the Drag-Along Member) shall, after taking into account the differing rights to distributions of the Members under <u>Article V</u>, be the same as the terms and conditions applicable to the Drag-Along Member. The provisions in <u>Section 8.05(c)</u> regarding the terms and conditions and documentation in connection with a Member Tag-Along Transaction shall apply to any Drag-Along Sale that is a Sale of the Company *mutatis mutandis*.

&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 Drag-Along Member shall exercise the rights provided in <u>Section 8.06</u> by providing written notice (the "<u>Drag-Along Notice</u>") to each other Member. The Drag-Along Notice will include the material terms and conditions of the Drag-Along Sale, including (i) the name and address of the proposed Transferee; (ii) the number of Interests of the Drag-Along Member proposed to be Transferred; (iii) the proposed amount and form of consideration; and (iv) the proposed Transfer date, if known. The Drag-Along Member will deliver or cause to be delivered to each other Member copies of all final transaction documents relating to the Drag-Along Sale promptly as the same become available. Notwithstanding anything to the contrary in this Agreement, after the Drag-Along Notice has been provided by the Drag-Along Member to the other Members with respect to any proposed Drag-Along Sale, no Member may Transfer any of its Interests to any Person (other than to a Permitted Transferee) other than as part of such Drag-Along Sale.

&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)Upon consummation of a Drag-Along Sale, the Beethoven Entities shall remit, or cause to be remitted, to the Members, in exchange for the Interests held by such Member and sold in such Drag-Along Sale, an amount equal to the amount that such Member would have received in respect of such Member's Interests if the aggregate consideration (after satisfaction or assumption of all debts and liabilities) from such Drag-Along Sale had been distributed to the Members in accordance with the terms set forth in <u>Section 5.02</u>; <u>provided</u>, that, if less than all of the outstanding Interests are included in such Drag-Along Sale, then the allocation of the proceeds from such Drag-Along Sale shall be determined as if the Interests included in such Drag-Along Sale were all of the then-outstanding Interests and the Members were distributed the aggregate consideration in a complete liquidation on that basis, and for

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purposes of this <u>Section 8.06(c)</u>, the terms of this Agreement shall be interpreted consistently with this assumption; <u>provided</u>, <u>further,</u> that each Member shall receive the same form of consideration (or rights to elect the form of consideration).

&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)Each of the Beethoven Entities and each Member shall promptly take all actions reasonably necessary or desirable in connection with the consummation of the Drag-Along Sale reasonably requested by the Drag-Along Member, including (i) voting all of its Interests entitled to vote on such Drag-Along Sale in favor of such Drag-Along Sale at any meeting of the Members called to vote on or approve such Drag-Along Sale and/or to consent in writing to such Drag-Along Sale (whether or not such approval of the Drag-Along Sale is required by applicable Legal Requirements); (ii) causing any Managers designated by such Member to vote in favor of such Drag-Along Sale at any meeting of the Board called to vote on or approve such Drag-Along Sale or to consent in writing to such Drag-Along Sale and raise no objection thereto; (iii) executing, acknowledging and delivering such agreements, consents, waivers and other documents and instruments, furnishing such information and documents, and filing such applications, reports, returns and other documents and instruments with Governmental Bodies, in each case, as may be reasonably necessary or desirable in connection with the Drag-Along Sale and only if and to the extent the Drag-Along Member is required to execute, acknowledge or deliver such agreements, consents, waivers and other documents and instruments in connection therewith; and (iv) taking such other actions as may be reasonably requested by the Board or the Drag-Along Member in connection with the Drag-Along Sale and only if and to the extent the Drag-Along Member is required to take such actions in connection therewith (it being hereby acknowledged by each Member that such further actions may be requested by the Board or the Drag-Along Member notwithstanding, and shall not limit in any manner the effect of, any approval, consent or waiver already given by such Member 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;(e)Notwithstanding anything to the contrary contained herein, <u>Section 8.07</u> shall apply to any Drag-Along Sale.

<u>Section 8.07</u><u>Indirect Transfers</u>. Notwithstanding anything to the contrary contained herein, in connection with any Transfer hereunder, including an Initial Public Offering and any Transfer pursuant to <u>Section 8.04</u>, <u>Section 8.05</u> or <u>Section 8.06</u>, each Member shall have the right to Transfer Equity Securities or other interests in any Blocker Entity, including by merging or contributing a Blocker Entity into the IPO Entity in a tax-free transaction to the extent applicable, instead of directly transferring Interests, and to receive the same form and amount of consideration as it would have received under this Agreement had it caused the direct transfer of Interests held (directly or indirectly) by such Blocker Entity; <u>provided</u>, that any reduction in the amount of consideration received by any Blocker Entity as a result of debt-like items determined solely by reference to liabilities exclusively of such Blocker Entity shall be solely borne by such Blocker Entity. Notwithstanding anything to the contrary in this Agreement, the BCSS Member shall be authorized to make any direct or indirect Transfers as may be necessary to permit the BCSS Member and its Affiliates to give effect to the rights set forth in this <u>Section 8.07</u>.

<u>Section 8.08</u><u>Back Leverage</u>. In connection with the pledging, granting, encumbering or hypothecating of Interests to a Back Leverage Lender, the BCSS Member shall use commercially reasonable efforts to, in the applicable loan documentation, have such Back Leverage Lender waive its right to, accede, on behalf of itself and any Person to which the Interests are Transferred in connection with the good faith exercise of any remedies in connection with any Back Leverage, including foreclosure, sale or other Transfer of the Interests by such Back Leverage Lender, to the BCSS Member's right to appoint and serve as a Manager hereunder. In the event of the good faith exercise of any remedies in connection with any Back Leverage, including the sale or other Transfer of the Interests by such Back Leverage Lender, in no event will any Back Leverage Lender be permitted to Transfer any Interests to [\*\*\*].

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**Article IX<br>DISSOLUTION; LIQUIDATION**

<u>Section 9.01</u><u>Dissolution</u>. Subject to Section 3.02(b) of the applicable Beethoven Topco LLC Agreement, a Beethoven Topco and/or its Subsidiaries shall be dissolved and its affairs wound up on the first to occur of any of the following events:

&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 (i) a Beethoven Topco, upon the approval thereof by its Board, the BCSS Member and the Warner Member and (ii) in the case of a Beethoven Entity that is not a Beethoven Topco, upon the approval of its sole member or board, with the consent of the Board of the applicable Beethoven Topco, the BCSS Member and the Warner Member, and in accordance with the applicable Beethoven Financing Subsidiary LLC Agreement; 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)Any other event sufficient under the Delaware Act or other applicable Legal Requirements to require the dissolution of such Beethoven Topco and/or its Subsidiaries, including the applicable Beethoven Financing Subsidiaries.

<u>Section 9.02</u><u>Final Accounting</u>. Upon the dissolution of any Beethoven Topco and/or its Subsidiaries, a proper accounting shall be made from the date of the last previous accounting to the date of dissolution.

<u>Section 9.03</u><u>Liquidation</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)Dissolution of a Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, shall be effective as of the date on which the event occurs giving rise to the dissolution, and each Beethoven Topco shall give prompt notice thereof to all of its Members in accordance with Article VII of the applicable Beethoven Topco LLC Agreement, but each Beethoven Topco and its Subsidiaries, including its Beethoven Financing Subsidiaries, and this Agreement shall not terminate until the assets of each Beethoven Topco and its Subsidiaries, including its Beethoven Financing Subsidiaries, have been distributed as provided for in <u>Section 9.03(c)</u>. Notwithstanding the dissolution of a Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, prior to the termination of the Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, the business, assets and affairs of the Beethoven Topcos and/or their Subsidiaries, including the Beethoven Financing Subsidiaries, shall continue to be governed by 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;(b)Upon the dissolution of a Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, the Board shall appoint someone to act as the liquidator of such Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, to wind up the Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries (the "<u>Liquidator</u>"). Without limiting any contractual requirements applicable to the Beethoven Topcos, any Subsidiary thereof, including any Beethoven Financing Subsidiary, or the Board, including the terms of this Agreement, the Liquidator shall have full power and authority to sell, assign and encumber any or all of the Beethoven Topco's and/or its Subsidiaries', including its Beethoven Financing Subsidiaries', assets and to wind up and liquidate the affairs of the Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, in an orderly and business-like 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;(c)The Liquidator shall distribute all proceeds from liquidation in the following order of priority: (i) *first*, to the expenses of the liquidation; (ii) *second*, to the creditors of the applicable Beethoven Topco and/or its Subsidiaries, including the Beethoven Financing Subsidiaries, including creditors who are Members, in satisfaction of the liabilities of such Beethoven Topco and/or its Subsidiaries, including the Beethoven Financing Subsidiaries

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(whether by payment or the making of reasonable provision for payment thereof); (iii) *third*, to purchase customary tail insurance coverage on customary terms for any Managers and officers and/or errors and omissions coverage maintained by the Beethoven Topco and/or its Subsidiaries, including the Beethoven Financing Subsidiaries, as of immediately prior to such dissolution; and (iv) *fourth*, if proceeds remain after giving effect to the payments contemplated by the immediately preceding clauses (i) through (iii), to the Members in accordance with the terms set forth in <u>Section 5.02</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 Liquidator shall determine whether any assets of a Beethoven Topco and/or its Subsidiaries, including its Beethoven Financing Subsidiaries, shall be liquidated through sale or shall be distributed in kind. A distribution in kind of an asset to a Member shall be considered, for the purposes of this <u>Section 9.03(d)</u>, a distribution in an amount equal to the fair market value of the assets so distributed as determined by the Liquidator (and not the Board unless the Board is the Liquidator) in its reasonable discretion.

<u>Section 9.04</u><u>Cancellation of Certificate</u>. Upon the completion of the distribution of the assets of all of the Beethoven Entities as provided in <u>Section 9.03</u>, the Beethoven Tax Partnership shall be terminated and the Person acting as Liquidator shall cause the cancellation of the Certificates of the Beethoven Entities and shall take such other actions as may be necessary or appropriate to terminate the Beethoven Tax Partnership.

**Article X<br>TERMINATION**

<u>Section 10.01</u><u>Termination</u>. Subject to Section 3.02(b) of each Beethoven Topco LLC Agreement, this Agreement shall terminate upon the first to occur 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;(a)the consummation of an Initial Public Offering of the IPO Entity;

&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 dissolution and winding up of each Beethoven Topco in accordance with <u>Section 9.01</u> of this Agreement and the termination of each Beethoven Topco LLC Agreement; 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 written agreement of each Board, the BCSS Member and the Warner Member.

Notwithstanding <u>Section 2.02</u> and this Agreement forming part of the "limited liability company agreement" of each Beethoven Topco within the meaning of Section 18-101(9) of the Delaware Act for all such purposes, this Agreement shall be severable from the Beethoven Topco LLC Agreements and the termination of this Agreement shall not affect the validity or enforceability of the Beethoven Topco LLC Agreements, which are terminable in accordance with their express terms and conditions.

<u>Section 10.02</u><u>Effect of Termination</u>. In the event of the termination of this Agreement as provided in <u>Section 10.01</u>, this Agreement shall become void and have no further effect without any liability on the part of any Member or other Person; <u>provided</u>, that (a) no such termination shall relieve any Member of any obligation or liability resulting from such Member's breach of this Agreement prior to its termination and (b) <u>Section 3.06</u>, Section <u>5.04</u>, Section <u>7.01</u>, Section <u>7.03</u>, Article <u>IX</u>, Article <u>X</u>, <u>Article XIV</u> and Section <u>7.06</u> shall survive the termination of this Agreement.

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**Article XI<br>AMENDMENTS; NOTICES; BOOKS AND RECORDS; REPORTS**

<u>Section 11.01</u><u>Amendments by the Members</u>. Subject to the terms set forth in this Agreement and in Section 3.02(b) of the Beethoven Topco LLC Agreements, this Agreement may be modified or amended and any provision hereof may be waived from time to time as determined by the Board of Beethoven 1.

<u>Section 11.02</u><u>Method for Notices</u>. In the event a notice or other document is required to be sent hereunder to the Beethoven Entities or any Member, such notice or other document shall be in writing and shall be (a) delivered by personal delivery; (b) sent by e-mail transmission; <u>provided</u>, that either receipt is confirmed by return e-mail transmission or such notice or document is also sent or delivered by one of the other delivery methods described in this <u>Section 11.02</u>; (c) sent by express overnight delivery or courier service; or (d) sent by United States registered or certified mail, return receipt requested, and postage and other fees prepaid. In the event a notice or other document is transmitted by the methods described by clauses (a), (c) or (d) above, such notice or other document shall, as a courtesy, also be sent by email transmission. Each notice and other document sent or delivered pursuant to this <u>Section 11.02</u> shall be considered given and received, (i) in the case of personal delivery, on the day such notice or document is personally delivered; (ii) in the case of e-mail delivery, on the day actually sent (with confirmation of transmission received by the sender without a bounceback); (iii) in the case of delivery by United States mail, on the fifth (5th) Business Day following the day on which such notice or other document is deposited in the mail; and (iv) in the case of express overnight delivery or courier service, the day following deposit with such delivery or courier service. Any notice and document shall be addressed, if to the Beethoven Entities or any Member, to the respective address for such Person listed on <u>Exhibit A</u>. Any Member or their respective legal representatives may effect a change of address for purposes of this Agreement by giving written notice of such change to each Member.

<u>Section 11.03</u><u>Books and Records</u>. At all times during the existence of the Beethoven Entities, each Beethoven Entity shall maintain, at its principal place of business, separate books and records of account for such Beethoven Entity.

<u>Section 11.04</u><u>Reports to Members</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)<u>Financial Reporting</u>. Beethoven 1 (or such other Beethoven Entity designated by the Board) shall prepare and deliver to each Member on an aggregated basis across all Beethoven Entities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)as soon as available, and in any event within one hundred fifty (150) days after the end of each Fiscal Year, audited consolidated balance sheets of the Beethoven Entities as of the end of each such Fiscal Year and audited consolidated statements of income, cash flows, and Members' equity for such Fiscal Year, in each case setting forth in comparative form the figures for the previous Fiscal Year; <u>provided</u>, that with respect to the end of the first Fiscal Year following the date of this Agreement, the applicable period for the delivery of reports under this <u>Section 11.04(a)</u> shall be one hundred eighty (180) days after the end of such Fiscal Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)as soon as available, and in any event within forty-five (45) days after the end of each quarterly accounting period in each Fiscal Year (other than the last fiscal quarter of the Fiscal Year), unaudited consolidated balance sheets of the Beethoven Entities as of the end of each such fiscal quarter and unaudited consolidated statements of income, cash flows, and Members' equity for such fiscal quarter and for the current Fiscal Year to date, in each case

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setting forth in comparative form the figures for the corresponding periods of the previous fiscal year, all in reasonable detail and all prepared in accordance with GAAP (subject to normal year-end audit adjustments and the absence of notes thereto); <u>provided</u>, that with respect to the end of the first two (2) quarterly accounting periods following the Effective Date, the applicable period for the delivery of reports under this <u>Section 11.04(a)</u> shall be ninety (90) days after the end of each such quarterly accounting 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)as soon as available, and in any event within thirty (30) days after the end of each calendar month in each Fiscal Year, unaudited consolidated balance sheets of the Beethoven Entities as of the end of each such month and unaudited consolidated statements of income, cash flows and Members' equity of the Beethoven Entities for such month, in each case setting forth in comparative form the figures for the corresponding periods of the previous fiscal year, all in reasonable detail and all prepared in accordance with GAAP (subject to normal year-end audit adjustments and the absence of notes 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)tax, financial and other information of the Beethoven Entities as may be necessary for such Member to comply with its respective reporting, regulatory, or other Legal Requirements and as may from time to time be reasonably requested by such Member; 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;(v)as soon as available, and in any event within forty-five (45) days after the end of each quarterly accounting period in each Fiscal Year (other than the last fiscal quarter of the Fiscal Year), substantially similar categorical revenue, fees and costs reporting to that reported by the Warner Member to its management team (the "<u>Management Reporting</u>"), including, as of the Effective Date, a summary (in a form reasonably agreed by such Member), with respect to such quarter, of the Beethoven Entities: (A) revenue from recorded music and name, image and likeness rights, revenue by type (e.g., streaming revenue, subscription revenue, etc.); (B) revenue from publishing rights, revenue by royalty category (e.g., performance, synchronization, etc.); and (C) management fees and costs by royalty category. Notwithstanding the foregoing, reporting pursuant to this clause (v) shall be modified from time to time to maintain consistency with the Management Reporting.

&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>Inspection Rights</u>. The Beethoven Entities shall afford each Member and its Information Representatives access to: (i) the financial and similar books and records, reports and documents of the Beethoven Entities and (ii) any officers, senior employees and accountants or senior officers or senior employees, including accountants, of the Warner Member for the purpose of discussing and answering reasonable questions regarding the affairs, finances and accounts of the Beethoven Entities, all upon reasonable prior notice to Beethoven 1, during normal business hours and in a manner that does not unreasonably interfere with the conduct of the business of the Beethoven Entities.

&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)<u>Sole Right to Information</u>. Notwithstanding anything herein to the contrary, each Member's sole right (if any) to receive information regarding a Beethoven Topco and its Subsidiaries and their respective businesses and operations or access to their respective books and records shall be the rights to information set forth in this Agreement. The terms of the immediately preceding sentence are expressly intended to override, and are included herein in lieu of, the terms set forth in Section 18-305 of the Delaware 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;(d)<u>Consistency</u>. Without the permission of the Board, except as may otherwise be required by applicable Legal Requirements based on the advice of such Member's tax counsel or tax auditors, no Member shall take a position on any tax return or other filing with any tax authority (or court) with respect to a partnership item that is inconsistent with the Beethoven Entities' treatment of such item on its tax return or request an administrative adjustment under Section 6227 of the Code with respect to a partnership item of the Beethoven Entities.

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**Article XII<br>CERTAIN COVENANTS OF THE MEMBERS**

<u>Section 12.01</u><u>Warehouse Facility Compliance</u>. Each of the Beethoven Entities and its subsidiaries shall duly and timely comply with its obligations under the Warehouse Facility and each agreement to which it is a party in connection therewith.

<u>Section 12.02</u><u>Securitization Financing</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 consummation of such transaction, the "<u>Securitization Trigger</u>"), the BCSS Member and the Warner Member shall during each quarter thereafter, consult with each other on their respective assessment of the ability of the Beethoven Entities to enter into a Securitization Financing, with a goal of refinancing the Warehouse Facility as soon as reasonably practicable following the Securitization Trigger. Upon the mutual agreement of each of the BCSS Member and the Warner Member as to when to pursue the Securitization Financing, the Members shall (i) cooperate with one another and consider in good faith the views of the other regarding the terms and conditions of any Securitization Financing and (ii) subject to Section 3.02(b) of the Beethoven Topco LLC Agreements, use their respective reasonable best efforts to cause the Beethoven Tax Partnership and its Subsidiaries to enter into and incur the Securitization Financing, on such terms as may be approved by the Board, acting in good faith (taking into account, among other things, market conditions and interest rates, investor demand, amount of the initial securitization debt for an efficient execution, collateral pool value and diversity, and other commercially reasonable factors).

&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)Each of the BCSS Member and the Warner Member shall use their reasonable best efforts to cause the Beethoven Entities to, and shall use reasonable best efforts to cause its and their respective officers, directors, employees, accountants, consultants and agents to provide cooperation in connection with the arrangement of any Securitization Financing approved pursuant to Section 3.02(b) of the Beethoven Topco LLC Agreements, including using reasonable best efforts to (i) cause the Beethoven Entities to engage a structuring agent and underwriter, placement agent or other provider of investment banking services (collectively, the "<u>Securitization Agents</u>") mutually selected by the BCSS Member and the Warner Member (acting reasonably and in good faith) to structure and place the Securitization Financing, (ii) preparing and making available such financial and other information regarding the Beethoven Entities and each Subsidiary of the Beethoven Entities and the assets to be securitized as is reasonably necessary to consummate the Securitization Financing and arranging any necessary appraisals of the assets in connection therewith; (iii) assisting with the preparation of customary lender and investor presentations, rating agency presentations, offering memoranda and other marketing materials and other similar documents and materials in connection with the Securitization Financing and participating in a reasonable number of meetings, presentations, road shows, drafting sessions and due diligence sessions with providers or potential providers of the Securitization Financing and ratings agencies and otherwise providing customary assistance in the marketing efforts of the Beethoven Entities and the Securitization Agents; (iv) executing, delivering and performing all documentation and other information as is necessary to consummate the Securitization Financing; and (v) assisting with the preparation, negotiation and execution of definitive financing documentation and the schedules and exhibits thereto on customary 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;(c)If the BCSS Member and the Warner Member mutually determine that obtaining the Securitization Financing is not reasonably practical or the Members, pursuant to Section 3.02(b) of the Beethoven Topco LLC Agreements, or the Board do not approve a Securitization Financing, then the BCSS Member, the Warner Member and the Beethoven Entities agree, subject to Section 3.02(b) of the Beethoven Topco LLC Agreements, to take the

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actions set forth in subclauses (i) and (ii) of clause (a) above, *mutatis mutandis*, and use their respective reasonable best efforts to effectuate an alternate refinancing of the Warehouse Facility.

<u>Section 12.03</u><u>Intellectual Property</u>. Any agreement for the provision of services between the BCSS Member or the Warner Member (or their respective Affiliates), on the one hand, and the Beethoven Entities and/or their Subsidiaries, including the Beethoven Financing Subsidiaries, on the other, including the Bain Services Agreement and the Warner Services Agreement (as applicable), shall include a provision pursuant to which all Intellectual Property created in performance of the services thereunder shall be assigned to the Beethoven Entities and neither party shall be entitled to use such Intellectual Property except for purposes of Beethoven Entity activities.

<u>Section 12.04</u><u>Employee Services</u>. None of the Managers shall be entitled to receive compensation from the Beethoven Topcos for serving as a Manager or providing services to the Beethoven Tax Partnership or any Beethoven Topco. Each Member or one or more of its Affiliates, as applicable, shall be entitled to receive compensation from the Beethoven Topcos and their Subsidiaries, including the Beethoven Financing Subsidiaries, for services rendered by such Member, one or more of its Affiliates or any employee thereof to the Beethoven Topcos and their Subsidiaries, including the Beethoven Financing Subsidiaries pursuant to (i) the Warner Services Agreement, (ii) the Bain Services Agreement, or (iii) any agreements approved by the Members pursuant to Section 3.02(b) of the Beethoven Topco LLC Agreements; [\*\*\*].

<u>Section 12.05</u><u>Hedging</u>. [\*\*\*].

**Article XIII<br>REPRESENTATIONS AND WARRANTIES**

<u>Section 13.01</u><u>Representations by Beethoven 1</u>. Beethoven 1 represents and warrants to the Members, the BCSS Funds and Warner Parent 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;(a)Beethoven 1 is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware. Beethoven 1 has the power and authority necessary to execute and deliver this Agreement and the Beethoven 1 LLC Agreement and to perform its obligations under such agreements in accordance with their terms. The execution, delivery and performance of this Agreement and the Beethoven 1 LLC Agreement and the consummation of the transactions contemplated thereunder have been duly and validly authorized by all necessary action on the part of Beethoven 1, and no other proceedings or actions on the part of Beethoven 1 are necessary to authorize the execution, delivery and performance of this Agreement and the Beethoven 1 LLC Agreement or to consummate the transactions contemplated thereby. This Agreement and the Beethoven 1 LLC Agreement are duly and validly executed and delivered by Beethoven 1 and assuming the due authorization, execution and delivery by the BCSS Member, the Warner Member, the BCSS Funds and the Warner Parent and each other party hereto, enforceable against Beethoven 1 in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally.

&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)As of the Effective Date, Beethoven 1 has no operations and no assets, and does not engage in, and has never engaged in, any business activities, in each case, other than (i) with respect to Beethoven Holdings 1, its ownership of 100% of the equity interests of Beethoven Holdings 1, and (ii) activities in connection with this Agreement and the Beethoven 1 LLC Agreement. Without limiting the generality of the foregoing, Beethoven 1 (A) has no, and has never had any, employees and (B) does not own or lease, and has never owned or leased, any

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real property or personal property. Beethoven 1 does not have any liabilities other than in connection with its incorporation, organization, good standing and capitalization, and liabilities for taxes not yet due and payable.

<u>Section 13.02</u><u>Representations by the BCSS Member</u>. The BCSS Member represents and warrants to the Members, Beethoven 1 and Warner Parent 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;(a)The BCSS Member is a limited partnership, duly organized, validly existing and in good standing under the laws of the State of Delaware. The BCSS Member has the power and authority necessary to execute and deliver this Agreement and the Beethoven Topco LLC Agreements and to perform its obligations under such agreements in accordance with their 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;(b)The execution, delivery and performance of this Agreement and the Beethoven Topco LLC Agreements and the consummation of the transactions contemplated thereunder have been duly and validly authorized by all necessary action on the part of the BCSS Member, and no other proceedings or actions on the part of the BCSS Member are necessary to authorize the execution, delivery and performance of this Agreement and the Beethoven Topco LLC Agreements or to consummate the transactions contemplated thereby.

&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)This Agreement and the Beethoven Topco LLC Agreements are duly and validly executed and delivered by the BCSS Member and assuming the due authorization, execution and delivery by Beethoven 1, the Warner Member, the BCSS Funds and the Warner Parent and each other party hereto, enforceable against the BCSS Member in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally.

<u>Section 13.03</u><u>Representations by the Warner Member</u>. The Warner Member represents and warrants to the Members, Beethoven 1 and the BCSS Funds 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;(a)The Warner Member is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Delaware. The Warner Member has the power and authority necessary to execute and deliver this Agreement and the Beethoven Topco LLC Agreements and to perform its obligations under such agreements in accordance with their 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;(b)The execution, delivery and performance of this Agreement and the Beethoven Topco LLC Agreements and the consummation of the transactions contemplated thereunder have been duly and validly authorized by all necessary action on the part of the Warner Member, and no other proceedings or actions on the part of the Warner Member are necessary to authorize the execution, delivery and performance of this Agreement and the Beethoven Topco LLC Agreements or to consummate the transactions contemplated thereby.

&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)This Agreement and the Beethoven Topco LLC Agreements are duly and validly executed and delivered by the Warner Member and assuming the due authorization, execution and delivery by Beethoven 1, the BCSS Member, the BCSS Funds and the Warner Parent and each other party hereto, enforceable against the Warner Member in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally.

<u>Section 13.04</u><u>Representations by the BCSS Funds</u>. The BCSS Funds represent and warrant to the Members, Beethoven 1 and Warner Parent as follows:

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&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 BCSS Fund is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation. The BCSS Funds each have the power and authority necessary to execute and deliver this Agreement and to perform their respective obligations under this Agreement. The BCSS GP is the general partner of the BCSS Member.

&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 execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereunder have been duly and validly authorized by all necessary action on the part of the BCSS Funds, and no other proceedings or actions on the part of the BCSS Funds are necessary to authorize the execution, delivery and performance of this Agreement or to consummate the transactions contemplated hereby and do not contravene any provision of the BCSS Funds' certificate of formation or similar organizational documents, or any applicable Legal Requirements, rule, regulation, decree, order, judgment or contractual restriction binding on the BCSS Funds or their 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;(c)This Agreement is duly and validly executed and delivered by the BCSS Funds and assuming the due authorization, execution and delivery by Beethoven 1, the BCSS Member, the Warner Parent and the Warner Member and each other party hereto, enforceable against the BCSS Funds in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally. All material consents, approvals, authorizations, permits of, filings with and notifications to, any Governmental Body necessary for the due execution, delivery and performance of this Agreement by the BCSS Funds have been obtained or made and all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with, any Governmental Body is required in connection with the execution, delivery or performance 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;(d)The BCSS Funds, collectively, have funds or available uncalled capital commitments in excess of the BCSS Member's Initial Commitment.

<u>Section 13.05</u><u>Representations by the Warner Parent</u>. The Warner Parent represents and warrants to the Members, Beethoven 1 and the BCSS Funds 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;(a)The Warner Parent is a corporation, duly organized, validly existing and in good standing under the laws of the State of Delaware. The Warner Parent has the power and authority necessary to execute and deliver this Agreement and to perform its obligations 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;(b)The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereunder have been duly and validly authorized by all necessary action on the part of the Warner Parent, and no other proceedings or actions on the part of the Warner Parent are necessary to authorize the execution, delivery and performance of this Agreement or to consummate the transactions contemplated hereby and do not contravene any provision of the Warner Parent's certificate of incorporation, bylaws or similar organizational documents, or any applicable Legal Requirements, rule, regulation, decree, order, judgment or contractual restriction binding on the Warner Parent or 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;(c)This Agreement is duly and validly executed and delivered by the Warner Parent and assuming the due authorization, execution and delivery by Beethoven 1, the BCSS Member, the BCSS Funds and the Warner Member and each other party hereto, enforceable against the Warner Parent in accordance with their respective terms, except as may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally. All material consents, approvals, authorizations, permits of, filings with and notifications to, any Governmental Body necessary for the due execution, delivery and performance of this Agreement by the Warner Parent have been obtained or made and all conditions thereof have been duly complied with, and no other action by, and no notice to or filing with, any

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Governmental Body is required in connection with the execution, delivery or performance 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;(d)The Warner Parent has funds in excess of the Warner Member's Initial Commitment.

<u>Section 13.06</u><u>Representations by the Beethoven Entities</u>. Each Beethoven Entity and its Subsidiaries that sign a Joinder Agreement and become a party hereto hereby make, by virtue of the execution and delivery of such Joinder Agreement, the representations and warranties set forth in <u>Section 13.01</u> *mutatis mutandis* to the Members and the other parties hereto.

**Article XIV<br>GENERAL PROVISIONS**

<u>Section 14.01</u><u>Governing Law; Submission to Jurisdiction; Waiver of Jury Trial</u>. This Agreement, and any matter or dispute that may be based upon, arise out of or relate to this Agreement (whether in contract, tort or statute), or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement), shall be governed by and enforced in accordance with the internal laws of the State of Delaware without giving effect to its choice of law provisions that would result in the application of the laws, rules or provisions of another jurisdiction. Each of the parties hereto irrevocably agrees that any legal action or proceeding arising out of this Agreement shall be brought only in the Delaware Court of Chancery first, and then if the Court of Chancery does not have subject matter jurisdiction in the State or Federal courts located in Wilmington, Delaware. Each party hereto irrevocably consents to the service of process outside the territorial jurisdiction of such courts in any such action or proceeding by the mailing of such documents by registered United States mail, postage prepaid, if to any Member, to the respective address for such Person listed in the Beethoven Entities' books and records for the delivery of notices to Members. Each party hereby waives, to the fullest extent permitted by applicable Legal Requirements, any right it may have to a trial by jury in respect to any litigation directly or indirectly arising out of, under or in connection with this Agreement, any agreement entered into in connection with this Agreement or any transaction contemplated hereby or thereby. Each party (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce that foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced to enter into this Agreement, as applicable, by, among other things, the mutual waivers and certifications in this <u>Section 14.01</u>.

<u>Section 14.02</u><u>Counterparts</u>. This Agreement may be executed in counterparts, each one of which shall be deemed an original and all of which together shall constitute one and the same Agreement.

<u>Section 14.03</u><u>Construction; Headings</u>. Whenever the feminine, masculine, neuter, singular or plural shall be used in this Agreement, such construction shall be given to such words or phrases as shall impart to this Agreement a construction consistent with the interest of the Members entering into this Agreement. Where used herein, the term "<u>Federal</u>" shall refer to the U.S. Federal government. As used herein, (a) "or" shall mean "and/or"; (b) the terms "hereof", "herein", "hereby" and derivative or similar words refer to this entire Agreement; (c) the terms "Article" or "Section" refer to the specified Article or Section of this Agreement and the terms "Schedule" or "Annex" refer to the Schedules and Annexes attached hereto, each of which is made a part hereof for all purposes; and (d) "including" or "include" shall mean "including, without limitation". Whenever this Agreement refers to a number of days, such number shall

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refer to calendar days unless Business Days are specified. The headings and captions herein are inserted for convenience of reference only and are not intended to govern, limit or aid in the construction of any term or provision hereof. Reference to any agreement, document or instrument means such agreement, document or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and, if applicable, hereof. It is the intention of the parties that every covenant, term and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any party (notwithstanding any rule of law requiring an Agreement to be strictly construed against the drafting party), it being understood that the parties to this Agreement are sophisticated and have had adequate opportunity and means to retain counsel to represent their interests and to otherwise negotiate the provisions of this Agreement. To the extent that any ambiguity or inconsistency arises with respect to any provision(s) of this Agreement, the Board shall resolve such ambiguity or inconsistency in good faith and such resolution shall be binding upon the Members.

<u>Section 14.04</u><u>Severability</u>. If any term or provision of this Agreement or the application thereof to any Person or circumstances shall be held invalid or unenforceable, the remaining terms and provisions hereof and the application of such term or provision to Persons or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby.

<u>Section 14.05</u><u>Successors and Assigns</u>. Except as otherwise provided herein, all of the terms and provisions of this Agreement shall inure to the benefit of and be binding upon each of the parties hereto and their respective successors and permitted assigns and transferees, if any; <u>provided</u>, that no Transfer of any Interests or Initial Commitments by any Member shall be made except in accordance with the provisions of <u>Article VIII</u> and the other applicable terms of this Agreement, and no assignment of any rights or obligations hereunder shall be made except in connection with a Transfer of Interests that is permitted pursuant to the terms hereof.

<u>Section 14.06</u><u>Entire Agreement</u>. This Agreement, each of the Beethoven Limited Liability Company Agreements, the Commercial Agreements, the Commercial Agreement Side Letters, the Warner Services Agreement and the Bain Services Agreement and all Schedules and Exhibits of each of the foregoing constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof, and supersedes any agreement or understanding entered into as of a date prior to the Effective Date among or between them with respect to such subject matter; <u>provided</u>, that in any conflict between the provisions of this Agreement and the Beethoven Limited Liability Company Agreements, including the Beethoven 1 LLC Agreement, the terms of this Agreement shall control.

<u>Section 14.07</u><u>No Third-Party Beneficiaries</u>. It is understood and agreed among the parties that this Agreement and the covenants made herein are made expressly and solely for the benefit of the parties hereto, and that, except as otherwise expressly provided for in this Agreement, no other Person shall be entitled or be deemed to be entitled to any benefits or rights hereunder, nor be authorized or entitled to enforce any rights, claims or remedies hereunder or by reason hereof.

<u>Section 14.08</u><u>Remedies and Waivers</u>. Except as otherwise expressly set forth herein, no delay or omission on the part of any party to this Agreement in exercising any right, power or remedy provided by law or provided hereunder shall impair such right, power or remedy or operate as a waiver thereof. The single or partial exercise of any right, power or remedy provided by law or provided hereunder shall not preclude any other or further exercise of any other right, power or remedy. The rights, powers and remedies provided hereunder are cumulative and are not exclusive of any rights, powers and remedies provided by law.

------

<u>Section 14.09</u><u>Specific Performance</u>. The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity, and shall not be required to post a bond or other collateral in connection therewith.

<u>Section 14.10</u><u>Public Announcements</u>. No Member will (and the Members will instruct their Affiliates not to) issue any public announcements or disseminate any advertising or marketing material concerning the existence or terms of this Agreement or the Beethoven Limited Liability Company Agreements, the limited liability company agreements of the Subsidiaries of the Beethoven Entities and the transactions contemplated hereby or thereby without the prior written approval of the BCSS Member and the Warner Member, except to the extent such announcement is required by Legal Requirement or the rules or regulations of any applicable stock exchange; <u>provided</u>, that the BCSS Member and its Affiliates may provide general information regarding this Agreement, the Beethoven Limited Liability Company Agreements and the transactions contemplated hereby and thereby to their respective existing or prospective limited partners, investors and financing sources in connection with their and their Affiliates' typical fundraising or reporting activities, in each case, subject to customary confidentiality arrangements with such Persons regarding such information. If a public announcement is required by Legal Requirement or the rules or regulations of any applicable stock exchange, the Member or Affiliate thereof required to make the announcement will use its reasonable best efforts to consult with the other Members before making the public announcement to the extent not prohibited by Legal Requirement. Notwithstanding the foregoing, (i) to the extent the content of any public announcement has been previously approved by the Warner Member and the BCSS Member or, following consultation with the other Members, a Member or its Affiliate has disclosed information regarding this Agreement, the Beethoven Limited Liability Company Agreements, the limited liability company agreements of the Subsidiaries of the Beethoven Entities or the transactions contemplated hereby or thereby as required by Legal Requirement or the rules or regulations of any applicable stock exchange, no separate approval shall be required in respect of such content to the extent replicated in whole or in part in any subsequent press release or other announcement, and (ii) each Member and its Affiliates may, without complying with the foregoing obligations, make any public announcement regarding this Agreement, the Beethoven Limited Liability Company Agreements, the limited liability company agreements of the Subsidiaries of the Beethoven Entities and the transactions contemplated hereby or thereby in response to questions from the press, analysts, investors or those attending industry conferences, and make internal announcements to employees, in each case, to the extent that such statements are not inconsistent with previous press releases, public disclosures or public statements made jointly by the parties or approved by the Warner Member and the BCSS Member, and otherwise in compliance with this Section <u>14.10</u>, and provided that such public statements do not reveal material nonpublic information regarding this Agreement, the Beethoven Limited Liability Company Agreements, the limited liability company agreements of the Subsidiaries of the Beethoven Entities or the transactions contemplated hereby or thereby. To the extent any advertising or marketing material permitted under this <u>Section 14.10</u> expressly refers to any Member or their Affiliates, such Member shall, in its sole discretion, have the right to revise such reference in such announcement or advertising or marketing material prior to granting such written approval.

<u>Section 14.11</u><u>Aggregation of Rights</u>. All Class A Units across all of the Beethoven Topcos held by a Member and its Permitted Transferees shall be aggregated together for purposes of determining the availability of any rights under this Agreement and all Class A Units in a particular Beethoven Topco held by a Member and its Permitted Transferees shall be aggregated together for purposes of determining the availability of any rights under the

------

applicable Beethoven Topco LLC Agreement. For the avoidance of doubt and without duplication of any rights, the rights of a Member generally hereunder may be exercised in whole or in part by the Permitted Transferees to which such Member has Transferred Interests in a Permitted Transfer; <u>provided</u>, that any rights and obligations under this Agreement that are personal to the Warner Member or the BCSS Member may not be assigned to, or be exercised by, any other Person, except that the Warner Member or the BCSS Member may assign such rights and obligations to a Permitted Transferee to whom all of its Interests have been Transferred.

<u>Section 14.12</u><u>Non-Recourse Parties</u>. Each Member acknowledges and agrees that this Agreement may only be enforced against, and any claim or suit based upon, arising out of or related to this Agreement, or the negotiation, execution of performance of this Agreement, may only be brought against the Members, and then only with respect to the specific obligations set forth herein with respect to the applicable Member. Notwithstanding any provision in this Agreement to the contrary, each Member agrees on its own behalf that no Non-Recourse Party of a Member shall have any liability (whether in contract, tort or otherwise, or based upon any theory that seeks to impose liability of any entity party against its owners or Affiliates) arising under, in connection with or relating to this Agreement or the preparation, negotiation or execution hereof, and each Member irrevocably and unconditionally waives, releases and agrees (on behalf of itself, its Subsidiaries and its Affiliates) not to assert all such liabilities and claims against any such Non-Recourse Party. Without limiting the generality of the foregoing, to the maximum extent permitted by Legal Requirements, other than pursuant to and to the extent provided in this Agreement, (a) each Member hereby irrevocably and unconditionally waives and releases any and all rights, claims, demands or causes of action that may otherwise be available in equity or at law, or granted by statute, to avoid or disregard the entity form of a Member or otherwise impose liability of a Member on any Non-Recourse Party, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization or otherwise; and (b) each Member irrevocably and unconditionally disclaims any reliance upon any Non-Recourse Parties with respect to the performance of this Agreement. The Non-Recourse Parties are expressly intended as third-party beneficiaries of this <u>Section 14.12</u>.

<u>Section 14.13</u><u>Equity Commitment and Guarantees</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 REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

------

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

**<u>BCSS MEMBER</u>:**

**BCSS W JV INVESTMENTS (B), L.P.**

By: BCSS W GP, LLC, its General Partner

By: Bain Capital Credit Member, LLC, its Manager

<u>By: /s/ Andrew S. Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**<u>BCSS GUARANTORS:</u>**

**BAIN CAPITAL SPECIAL SITUATIONS ASIA II, L.P.**

By: Bain Capital Special Situations Asia II General Partner, LLC, its General Partner

By: Bain Capital Credit Member, LLC, its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**BAIN CAPITAL SPECIAL SITUATIONS EUROPE II SCSP**

By: Bain Capital Special Situations Europe II General Partner S.à r.l., its General Partner

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

------

**BAIN CAPITAL CREDIT MANAGED ACCOUNT (VFMC) L.P.**

By: Bain Capital Distressed and Special Situations 2019 Investors, LLC, its General Partner

By: Bain Capital Credit Member II, Ltd., its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**BAIN CAPITAL GSS 2022 (A), L.P.**

By: Bain Capital GSS 2022 General Partner, LLC, its General Partner

By: Bain Capital Credit Member III, LLC, its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**BAIN CAPITAL GSS 2022 (B), SCSP**

By: Bain Capital GSS 2022 General Partner, SARL, its Managing General Partner

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Manager A

<u>By: /s/ Matthieu Huffling&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Matthieu Huffling<br>Title: Manager B

------

**POINT LONSDALE FUND, L.P.**

By: Bain Capital Distressed and Special Situations 2019 Investors, LLC, its General Partner

By: Bain Capital Credit Member II, Ltd., its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**BAIN CAPITAL SPECIAL SITUATIONS MANAGED ACCOUNT (N), L.P.**

By: Bain Capital Special Situations Managed Account General Partner (N), LLC, its General Partner

By: Bain Capital Credit Member, LLC, its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

------

**BAIN CAPITAL SPECIAL SITUATIONS MANAGED ACCOUNT (CLP), L.P.**

By: Bain Capital Special Situations Managed Account General Partner (CLP), LLC, its General Partner

By: Bain Capital Credit Member, LLC, its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**BAIN CAPITAL CREDIT MANAGED ACCOUNT (BC), L.P.**

By: Bain Capital Credit Managed Account (BC) General Partner, LLC, its General Partner

By: Bain Capital Credit Member LLC, its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

**<u>BCSS GP</u>:**

**BCSS W GP, LLC**

By: Bain Capital Credit Member, LLC, its Manager

<u>By: /s/ Andrew S Viens&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Andrew S. Viens<br>Title: Authorized Signatory

------

**<u>WARNER</u>:**

**WMG BC HOLDCO LLC**

<u>By: /s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Paul M. Robinson<br>Title: Vice President & Secretary

**Solely for purposes of <u>Section 13.05</u> and <u>14.13(b)</u>, WMG ACQUISITION CORP.**

<u>By: /s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Paul M. Robinson<br>Title: Executive Vice President, General Counsel & Assistant Secretary

------

**<u>BEETHOVEN ENTITIES</u>:**

**BEETHOVEN JV 1, LLC**

<u>By: /s/ Angelo Rufino&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Angelo Rufino<br>Title: President and Treasurer

**BEETHOVEN HOLDINGS 1, LLC**

<u>By: /s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Paul M. Robinson<br>Title: Vice President & Secretary

**BEETHOVEN FINANCING 1, LLC**

<u>By: /s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;</u><br>Name: Paul M. Robinson<br>Title: Vice President & Secretary

## Exhibit 10.4

**Exhibit 10.4**

***Execution Version***

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [\*\*\*] INDICATES THAT THE INFORMATION HAS BEEN REDACTED.**

**AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**BEETHOVEN JV 1, LLC**

**Dated as of June 29, 2025**

THE INTERESTS (AS DEFINED HEREIN) EVIDENCED BY THIS AGREEMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT (AS DEFINED HEREIN) OR UNDER THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION. SUCH INTERESTS ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE OR OTHER SECURITIES LAWS, PURSUANT TO REGISTRATION THEREUNDER OR EXEMPTION THEREFROM. IN ADDITION, TRANSFER OR OTHER DISPOSITION OF SUCH INTERESTS IS FURTHER RESTRICTED AS PROVIDED IN THIS AGREEMENT AND THE MASTER AGREEMENT (AS DEFINED HEREIN). PURCHASERS OF INTERESTS SHOULD BE AWARE THAT THEY WILL BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD OF TIME.

------

**TABLE OF CONTENTS**

**Page**

<u>[ARTICLE II ORGANIZATION](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[6](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Formation of Company](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[6](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.02](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Name](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[6](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.03](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Office; Agent for Service of Process](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[6](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.04](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Term](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[7](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.05](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Purpose and Scope](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[7](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.06](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Fiscal Year](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[7](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 2.07](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[No State Law Partnership](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[7](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE III OWNERSHIP AND VOTING RIGHTS](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[7](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 3.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Ownership and Issuance of Interests](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[7](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 3.02](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Voting Rights](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[11](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 3.03](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Withdrawals](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[14](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 3.04](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Liability of the Members Generally](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[14](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE IV MANAGEMENT](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[14](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Management of the Company by the Board of Managers](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[14](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.02](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Board Actions](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[15](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.03](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Meetings of the Board](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[15](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.04](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Officers](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[16](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.05](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Compensation; No Employment](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[16](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.06](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[No Personal Liability](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[16](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.07](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Exculpation](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[16](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.08](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Indemnification](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[17](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 4.09](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Affiliated Agreements](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[20](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE V \[RESERVED\]](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[20](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE VI TRANSFERS](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[20](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 6.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Transfers of Interests.](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[20](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE VII AMENDMENTS; NOTICES](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[22](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 7.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Amendments by the Members](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[22](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 7.02](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Method for Notices](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[22](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE VIII REPRESENTATIONS](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[22](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 8.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Independent Inquiry](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[22](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[ARTICLE IX GENERAL PROVISIONS](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[23](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.01](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Governing Law; Submission to Jurisdiction; Waiver of Jury Trial](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[23](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

i

------

<u>[Section 9.02](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Counterparts](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[24](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.03](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Construction; Headings](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[24](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.04](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Severability](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[24](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.05](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Waiver of Action for Partition](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[24](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.06](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Successors and Assigns](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[24](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.07](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Entire Agreement](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.08](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[No Third Party Beneficiaries](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.09](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Other Instruments and Acts](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.10](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Remedies and Waivers](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.11](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Specific Performance](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.12](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[No Article 8 Election](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.13](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Aggregation of Rights](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[25](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>[Section 9.14](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)<u>[Non-Recourse Parties](#i4c4d03ea09e54070bcb8cbdb66d44475_7)</u>[&nbsp;&nbsp;&nbsp;&nbsp;](#i4c4d03ea09e54070bcb8cbdb66d44475_7)[26](#i4c4d03ea09e54070bcb8cbdb66d44475_7)

<u>EXHIBITS AND SCHEDULES</u>

EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;FORM OF JOINDER AGREEMENT

SCHEDULE I&nbsp;&nbsp;&nbsp;&nbsp;MEMBERS; INTERESTS AND INFORMATION RELATED THERETO

ii

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**AMENDED AND RESTATED**

**LIMITED LIABILITY COMPANY AGREEMENT**

**OF**

**BEETHOVEN JV 1, LLC**

This AMENDED AND RESTATED LIMITED LIABILITY COMPANY AGREEMENT of Beethoven JV 1, LLC, a Delaware limited liability company (the "<u>Company</u>"), is made and entered into as of this 29th day of June, 2025 (the "<u>Effective Date</u>"), by and among (a) the Company, (b) BCSS W JV Investments (B), L.P., a Delaware limited partnership (together with its Permitted Transferees, the "<u>BCSS Member</u>"), (c) WMG BC Holdco LLC, a Delaware limited liability company (together with its Permitted Transferees, the "<u>Warner Member</u>") and (d) each other Person who becomes a Member in accordance with the terms of this Agreement from time to time. Capitalized terms used herein and not otherwise defined herein shall have the meanings set forth in <u>Article I</u>.

**W I T N E S S E T H:**

WHEREAS, on April 21, 2025, the Company was formed as a limited liability company pursuant to the Delaware Limited Liability Company Act (6 <u>Del</u>. <u>C</u>. § 18-101, <u>et seq.</u>, as amended and in effect from time to time, the "<u>Delaware Act</u>") by the filing of a Certificate of Formation (the "<u>Certificate</u>") with the Office of the Secretary of State of the State of Delaware;

WHEREAS, on April 21, 2025, the BCSS Member executed the Limited Liability Company Agreement of the Company (the "<u>Original LLCA</u>") and ratified the filing of the Certificate with the office of the Secretary of State of the State of Delaware;

WHEREAS, on the Effective Date, each of the BCSS Member and the Warner Member wishes to amend and restate the Original LLCA to admit the Warner Member and to reflect the terms and conditions set forth herein; and

WHEREAS, on the Effective Date, each of the BCSS Member and the Warner Member wishes to set forth the rights, entitlements, liabilities and obligations with respect to each Member's ownership of the Company and, in furtherance thereof, each of the Company, the BCSS Member and the Warner Member wishes to enter into (a) this Agreement, and (b) that certain Master Operations and Economics Agreement (the "<u>Master Agreement</u>"), which, taken together with this Agreement, are intended by the Members to serve as the "limited liability company agreement" of the Company within the meaning of Section 18-101(9) of the Delaware Act for all such purposes.

NOW, THEREFORE, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, each intending to be legally bound, agree as follows:

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**Article I<br>DEFINITIONS**

"<u>Access Parties</u>" has the meaning set forth in the definition of "Affiliate".

"<u>Affiliate</u>" means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries, Controls, is Controlled by or is under common Control with such Person, and the term "<u>Affiliated</u>" shall have a correlative meaning; <u>provided</u>*,* that for purposes of this Agreement, (a) neither the Company nor any of its Subsidiaries shall be deemed to be an Affiliate of any of the Members or any of their respective Affiliates; (b) other than for purposes of Section <u>3.02(b)(iii)</u> and Section <u>4.09</u>, none of Access Industries, Inc., any of its investment funds, investments or managed vehicles or any Subsidiary or portfolio company thereof (other than Warner Music Group Corp. and its Subsidiaries) (collectively, the "<u>Access Parties</u>") shall be considered an Affiliate of the Warner Member; and (c) no portfolio company of Bain Capital shall be considered an Affiliate of the BCSS Member; <u>provided</u>, <u>further</u>, that notwithstanding the foregoing, for purposes of <u>Section 3.02(b)(iii)</u>, Affiliates of the BCSS Member shall include portfolio companies of Bain Capital Special Situations, LP.

"<u>Agreement</u>" means this Amended and Restated Limited Liability Company Agreement, including all exhibits and schedules hereto, as it may be supplemented, amended, restated, amended and restated or modified from time to time.

"<u>Bain Services Agreement</u>" has the meaning set forth in the Master Agreement.

"<u>BCSS Manager</u>" means each Manager designated by the BCSS Member in accordance with the Master Agreement.

"<u>BCSS Member</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Board</u>" has the meaning set forth in <u>Section 4.01</u>.

"<u>Business Day</u>" means any day, excluding Saturday, Sunday and any other day on which commercial banks in New York, New York or Boston, Massachusetts are authorized or required by law to close. For any period that is measured in Business Days, if the scheduled termination of such period would fall on a day that is not a Business Day then the termination of such period shall be deferred until the next succeeding Business Day.

"<u>Capital Call</u>" has the meaning set forth in the Master Agreement.

"<u>Capital Contribution</u>" means, with respect to any Class A Unit, the amount of money or the fair market value (as determined by the Board; <u>provided</u>, that no such determination shall treat any Class A Member differently from any other Class A Member in respect of the same contribution) of any property (other than money) contributed to the Company in respect of such Class A Unit. The Capital Contributions contributed by the Members shall be reflected on <u>Schedule I</u> attached hereto and on Exhibit A attached to the Master Agreement. The Capital

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Contribution applicable to each Class A Unit shall be adjusted by the Board in good faith to account for the effect of any recapitalization events.

"<u>Capital Contribution Percentage</u>" means, with respect to any Member, a fraction, expressed as a percentage, the numerator of which is equal to the aggregate Capital Contributions made by such Member and the denominator of which is equal to the aggregate Capital Contributions made by all Members.

"<u>Certificate</u>" has the meaning set forth in the recitals to this Agreement.

"<u>Class A Contribution</u>" has the meaning set forth in the Master Agreement.

"<u>Class A Member</u>" means, collectively, the Class A-1 Members and Class A-2 Members.

"<u>Class A Units</u>" means, collectively, the Class A-1 Units and Class A-2 Units.

"<u>Class A-1 Member</u>" means, as of any date of determination, a holder of Class A-1 Units.

"<u>Class A-1 Unit</u>" means an Interest designated as a Class A-1 Unit of the Company, having the rights and obligations specified in this Agreement and in the Master Agreement.

"<u>Class A-2 Member</u>" means, as of any date of determination, a holder of Class A-2 Units.

"<u>Class A-2 Unit</u>" means an Interest designated as a Class A-2 Unit of the Company, having the rights and obligations set forth in this Agreement and in the Master Agreement.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Commercial Agreements</u>" has the meaning set forth in the Master Agreement.

"<u>Company</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Control</u>", "<u>Controlled</u>" and "<u>Controlling</u>" mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of at least 50% of voting Securities, by contract or otherwise.

"<u>Delaware Act</u>" has the meaning set forth in the recitals to this Agreement.

"<u>Effective Date</u>" has the meaning set forth in the introductory paragraph hereof.

"<u>Entity</u>" means any general partnership, limited partnership, limited liability company, corporation, joint venture, trust, business trust, cooperative, association or other legal entity or organization.

"<u>Equity Securities</u>" has the meaning set forth in <u>Section 3.01(e)(i)</u>.

"<u>Excluded Securities</u>" means any Class A Units or other Interests, or equity Securities of any of the Company's Subsidiaries: (a) issued as a dividend or distribution on Class A Units or

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other Interests in accordance with this Agreement and the Master Agreement; (b) issued by a Subsidiary of the Company to another directly or indirectly wholly-owned Subsidiary of the Company or to the Company; (c) of the IPO Entity issued to the public in connection with an Initial Public Offering; (d) issued, sold or otherwise transferred to sellers (not including the Members and their Affiliates) as consideration in connection with the Company's or any Subsidiary's acquisition of all or substantially all of another Person or another Person's line of business or division, or all or substantially all of another Person's assets, in any case, by merger, consolidation, stock purchase, asset purchase, recapitalization, or other reorganization, in each case, in accordance with the terms of this Agreement; or (e) issued pursuant to a Capital Call in accordance with Section 3.01(b) of the Master Agreement.

"<u>Federal</u>" has the meaning set forth in <u>Section 9.03</u>.

"<u>Fiscal Year</u>" has the meaning set forth in <u>Section 2.06</u>.

"<u>GAAP</u>" means generally accepted accounting principles in the United States of America, as consistently applied by Warner Music Group Corp. or a successor Entity thereto.

"<u>Governmental Body</u>" means any: (a) nation, state, county, city, town, borough, village, district or other jurisdiction; (b) federal, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental authority of any nature (including any agency, branch, department, board, commission, court, tribunal or other entity exercising governmental or quasi-governmental powers); (d) multinational organization or body; (e) body exercising, or entitled or purporting to exercise, any administrative, executive, judicial, legislative, police, regulatory or taxing authority or power, including any arbitral tribunal; or (f) official of any of the foregoing.

"<u>Imputed Underpayment Amount</u>" has the meaning set forth in the Master Agreement.

"<u>Indebtedness</u>" of any Person means, without duplication (whether contingently or otherwise) (a) indebtedness of such Person for borrowed money, whether secured or unsecured, and whether or not evidenced by bonds, debentures, notes, other debt securities or other instruments, and indebtedness of such Person issued or, without duplication, incurred in substitution or exchange for indebtedness for borrowed money; (b) indebtedness of such Person evidenced by any note, bond, debenture or other debt security; (c) payment obligations of such Person in respect of any financial hedging arrangements or similar agreements; (d) required lease payments under leases that have been, or should be, recorded as capital leases in accordance with GAAP; (e) any payment obligations under conditional sale or other title retention agreement relating to property purchased by such Person; (f) obligations of such Person under any performance bond or letter of credit or similar arrangement; and (g) obligations of such Person under any guarantees, pledges, liens, mortgages or security interests with respect to any Person other than the Company in respect of clauses (a) through (f).

"<u>Indemnification Agreements</u>" has the meaning set forth in <u>Section 4.08(f)</u>.

"<u>Indemnified Party</u>" has the meaning set forth in <u>Section 4.08(a)</u>.

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"<u>Initial Class A Units</u>" has the meaning set forth in <u>Section 3.01(c)</u>.

"<u>Initial Commitment</u>" has the meaning set forth in the Master Agreement.

"<u>Initial Commitment Amount</u>" has the meaning set forth in the Master Agreement.

"<u>Initial Public Offering</u>" means an initial firm commitment underwritten public offering that is registered under the Securities Act and which results in the equity interests of the IPO Entity being listed on the New York Stock Exchange or Nasdaq Stock Market.

"<u>In-Scope Catalogs</u>" has the meaning set forth in <u>Section 2.05</u>.

"<u>Interest</u>" means the membership units and any other limited liability company units or other Equity Securities of the Company, including the Initial Class A Units issued as of the Effective Date, and any Class A Units and any other class or series of limited liability company units that may be issued from time to time following the Effective Date in accordance with the terms set forth in this Agreement and the Master Agreement.

"<u>IPO Entity</u>" has the meaning set forth in the Master Agreement.

"<u>Joinder Agreement</u>" has the meaning set forth in Section <u>6.01(b)</u>.

"<u>Legal Requirements</u>" means all foreign, federal, state or local laws, common laws, statutes, ordinances, executive orders, rules, regulations, orders, judgments, administrative orders, decrees, directives, administrative or judicial decisions and any other executive, legislative, regulatory or administrative proclamations, of any Governmental Body, to which the Company, any Subsidiary of the Company or any Member is subject.

"<u>Liquidator</u>" has the meaning set forth in the Master Agreement.

"<u>Manager</u>" has the meaning set forth in <u>Section 4.01</u>.

"<u>Manager Indemnitee</u>" has the meaning set forth in <u>Section 4.08(f)</u>.

"<u>Master Agreement</u>" has the meaning set forth in the recitals.

"<u>Member</u>" means any Person admitted to the Company as a "Member" from time to time in accordance with the terms of this Agreement and the Master Agreement and shall exclude (for the avoidance of doubt) any Person who ceases to be a Member pursuant to the terms set forth in this Agreement and the Master Agreement.

"<u>Member Indemnitors</u>" has the meaning set forth in <u>Section 4.08(f)</u>.

"<u>Non-Recourse Party</u>" has the meaning set forth in the Master Agreement.

"<u>Officer</u>" has the meaning set forth in <u>Section 4.04</u>.

"<u>Original LLCA</u>" has the meaning set forth in the recitals to this Agreement.

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"<u>Partnership Representative</u>" has the meaning set forth in the Master Agreement.

"<u>Permitted Transfer</u>" has the meaning set forth in the Master Agreement.

"<u>Permitted Transferee</u>" has the meaning set forth in the Master Agreement.

"<u>Person</u>" means any individual or Entity and the successors in interest and permitted assigns of such Person.

"<u>Preemptive Right</u>" has the meaning set forth in Section <u>3.01(e)(i)</u>.

"<u>Preemptive Right Notice</u>" has the meaning set forth in Section <u>3.01(e)(i)</u>.

"<u>Proposed Securities</u>" has the meaning set forth in Section <u>3.01(e)(i)</u>.

"<u>Regulations</u>" means the Federal tax regulations promulgated under the Code.

"<u>Sale of the Company</u>" has the meaning set forth in the Master Agreement.

"<u>Securities</u>" means any shares of capital stock, limited partnership interests, limited liability company interests, warrants, options, bonds, notes, debentures and other equity and debt securities of whatever kind of any Person, whether readily marketable or not.

"<u>Securities Act</u>" means the Securities Act of 1933, as amended, and any successor statute thereto and any rules and regulations promulgated thereunder, all as the same shall be in effect from time to time.

"<u>Subsidiary</u>" has the meaning set forth in the Master Agreement.

"<u>Successor Entity</u>" has the meaning set forth in the definition of "Sale of the Company" in the Master Agreement.

"<u>Termination for Cause</u>" has the meaning set forth in the Master Agreement.

"<u>Transfer</u>" has the meaning set forth in the Master Agreement.

"<u>Warehouse Facility</u>" has the meaning set forth in the Master Agreement.

"<u>Warner Funding Default</u>" has the meaning set forth in the Master Agreement.

"<u>Warner Manager</u>" has the meaning set forth in the Master Agreement.

"<u>Warner Services Agreement</u>" has the meaning set forth in the Master Agreement.

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**Article II<br>ORGANIZATION**

Section 2.01<u>Formation of Company</u>. The Company was formed on April 21, 2025 pursuant to the Delaware Act. The rights and liabilities of the Members shall be as provided for in the Delaware Act if not otherwise expressly provided for in this Agreement or the Master Agreement, which, taken together, are intended by the Members to serve as the "limited liability company agreement" of the Company for all purposes under the Delaware Act.

Section 2.02<u>Name</u>. The name of the Company is "Beethoven JV 1, LLC". The business of the Company shall be conducted under such name or under such other names as the Warner Member and the BCSS Member unanimously deem appropriate.

Section 2.03<u>Office; Agent for Service of Process</u>. The address of the registered office of the Company in the State of Delaware is Suite 402, 4001 Kennett Pike, County of New Castle, Wilmington, Delaware 19807. The name and address of the registered agent in Delaware for service of process is Maples Fiduciary Services (Delaware) Inc., Suite 402, 4001 Kennett Pike, County of New Castle, Wilmington, Delaware 19807. The Board may change the registered office and the registered agent of the Company from time to time. The Company shall maintain a principal place of business and office(s) at such place or places as the Board may from time to time designate.

Section 2.04<u>Term</u>. The Company commenced on the date of the filing of the Certificate, and the term of the Company shall continue until the dissolution of the Company in accordance with the provisions of <u>Article IX</u> of the Master Agreement.

Section 2.05<u>Purpose and Scope</u>. The purpose and business of the Company is to (a) acquire, manage, sell and exploit certain seasoned music publishing and recorded music catalog assets and any name, image and likeness assets related thereto (collectively, the "<u>In-Scope Catalogs</u>"); (b) receive proceeds from the management, sale and exploitation of the In-Scope Catalogs; (c) enter into agreements in connection with the acquisition, management, sale and exploitation of the In-Scope Catalogs; (d) engage in any and all business and operations that are incidental or ancillary to any of the foregoing clauses (a) through (c) or are determined to be necessary or desirable by the Board in connection therewith; and (e) engage in any and all other activities or businesses as permitted to be engaged in by a limited liability company formed under the Delaware Act.

Section 2.06<u>Fiscal Year</u>. Unless otherwise required by the Code and applicable Regulations, the fiscal year of the Company shall end September 30, or as otherwise determined from time to time by the Board (the "<u>Fiscal Year</u>").

Section 2.07<u>No State Law Partnership</u>. The Members intend that the Company not constitute or be deemed to be a partnership (including a limited partnership) or joint venture, and that no Member (or any Affiliate thereof) or Manager constitute or be deemed to be a partner, agent, or joint venturer of any other Member or Manager, for any purposes other than, as contemplated by Section 7.05 of the Master Agreement, Federal, state, and local income tax purposes, and this Agreement shall not be construed, interpreted or applied to suggest otherwise.

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**Article III<br>OWNERSHIP AND VOTING RIGHTS**

Section 3.01<u>Ownership and Issuance of Interests</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)<u>Interests</u>. Following the Effective Date, the Company may from time to time, subject to the terms of the Master Agreement, including Section 3.01 thereof, and this Agreement, including <u>Section 3.02(b)</u>, issue such Interests as the Board approves from time to time. For the avoidance of doubt, subject to Section <u>3.02(b)</u>, the issuance of any Interests or other Securities or instruments exercisable for or convertible into Interests shall require the prior written consent of the Board.

&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>Interest Certificates</u>. Ownership of Interests may, but need not, be evidenced by certificates similar to customary stock certificates. Initially, Interests shall be uncertificated, but the Board may determine to certificate all or any Interests at any time by resolution thereof. In such event, the Board shall prescribe the forms of certificates to be issued by the Company, including the forms of legends to be affixed thereto. Any such certificate shall be delivered by the Company to the applicable record owner of the Interests represented by such certificate. Certificates evidencing Interests will provide that they are governed by Article 8 of the Uniform Commercial Code. Certificates need not bear a seal of the Company but shall be signed by an Officer or any other Person authorized by the Board to sign such certificates who shall certify the Interests represented by such certificate. Books and records reflecting the record ownership of the Interests shall be kept by the Company. In the event any Officer who shall have signed, or whose facsimile signature or signatures shall have been placed upon, any such certificate or certificates shall have ceased to be such Officer before such certificate is issued by the Company, such certificate may nevertheless be issued by the Company with the same effect as if such person were such Officer at the date of issue. The Board may determine the conditions upon which a new certificate may be issued in place of a certificate which is alleged to have been lost, stolen or destroyed and may, in its discretion, require the owner of such certificate or its legal representative to give a bond, with sufficient surety, to indemnify the Company against any and all losses or claims that may arise by reason of the issuance of a new certificate in the place of the one so lost, stolen or destroyed. Each certificate shall bear a legend on the reverse side thereof substantially in the following form in addition to any other legend required by law or by agreement with the Company:

**THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "**SECURITIES ACT**"**), AND MAY NOT BE OFFERED OR SOLD UNLESS THEY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OR UNLESS AN EXEMPTION FROM REGISTRATION IS AVAILABLE (AND, IN SUCH CASE, AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY MAY BE REQUESTED BY THE COMPANY TO THE EFFECT THAT SUCH OFFER OR SALE IS NOT REQUIRED TO BE REGISTERED UNDER THE SECURITIES ACT).** 

**THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS SET FORTH IN THE AMENDED AND RESTATED LIMITED LIABILITY** 

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**COMPANY AGREEMENT OF THE COMPANY, AND THE MASTER AGREEMENT, IN EACH CASE, DATED AS OF JUNE 29, 2025 (AS MAY BE AMENDED, RESTATED, AMENDED AND RESTATED, MODIFIED OR SUPPLEMENTED FROM TIME TO TIME), A COPY OF WHICH MAY BE OBTAINED FROM THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES. NO TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF SUCH LIMITED LIABILITY COMPANY AGREEMENT AND MASTER AGREEMENT. THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH LIMITED LIABILITY COMPANY AGREEMENT AND MASTER 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;(c)<u>Unit Designations; Authorized Units</u>. The Interests authorized for issuance as of the Effective Date are hereby designated as "Class A Units". The Class A Units may be subdivided into subclasses, including the Class A-1 Units and the Class A-2 Units. Subject to <u>Section 3.02(b)</u>, the Company is authorized to issue as many Interests as the Board approves from time to time, and any Interests issued in accordance with this Agreement and the Master Agreement shall be deemed to have been duly authorized and validly issued. The number of Class A Units issued by the Company and the names and addresses of the Members holding record title to the Class A Units are set forth in <u>Schedule I</u> attached hereto and in Exhibit A attached to the Master Agreement. Notwithstanding anything in this Agreement or the Master Agreement to the contrary, on the Effective Date, each of the Warner Member and the BCSS Member shall be issued for $1 per Member the number of Class A Units set forth opposite its name on <u>Schedule I</u> (the "<u>Initial Class A Units</u>") (which Initial Class A Units shall also be reflected on Exhibit A to the Master Agreement); <u>provided</u> that: (i) such Initial Class A Units shall be redeemed by the Company for $1 per Initial Class A Unit immediately prior to the first Capital Contribution made by the Members to the Company following the Effective Date (and, for clarification, such Members shall remain members of the Company); and (ii) concurrently with the making of such first Capital Contribution, each Member shall be issued new Class A Units in respect of such Capital Contribution in accordance with the terms of this Agreement and Section 3.01 of the Master Agreement, and <u>Schedule I</u> attached hereto (and Exhibit A attached to the Master Agreement) shall be updated accordingly to reflect the issuance of such new Class A Units.

&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)<u>Issued and Outstanding Interests; Ledger</u>. The Company shall maintain an accurate ledger listing all of the record holders of Interests and the number, class, sub-class or series of Interests held thereby. The Company shall update <u>Schedule I</u> as Interests are issued, forfeited or transferred from time to time in accordance with the terms of this Agreement and the Master Agreement. Any modification to <u>Schedule I</u> by the Company as set forth in the preceding sentence shall not require consent or approval from any of the 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;(e)<u>Preemptive Rights</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)[\*\*\*].

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Section 3.02<u>Voting Rights</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)<u>General</u>. All Members shall be entitled to one (1) vote for each Class A Unit held on all matters submitted for approval of the Members pursuant to the terms of this Agreement or unwaivable provision of the Delaware Act and hereby waive all other voting rights in their capacities as Members; <u>provided</u>, that, subject to Section 8.04 and Section 8.06 of the Master Agreement, any such vote shall require the affirmative vote of each of the BCSS Member and the Warner Member.

&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>Reserved Matters</u>. Notwithstanding anything to the contrary contained herein or in the Master Agreement, the Company shall not (and shall not permit any of its Subsidiaries to), either directly or indirectly by amendment, merger, consolidation or otherwise, do any of the following without the prior written consent of the BCSS Member and the Warner Member, and any such act or transaction entered into without such prior written consent shall be null and void *ab initio*, and of no force or effect; <u>provided</u>, that following a Termination for Cause or a Warner Funding Default, the prior written consent of the Warner Member shall only be required for items (i) (solely with respect to any amendment that has a disproportionately adverse impact on the Warner Member as compared to the BCSS Member), (iii), (viii), (ix), (xi) and (xx) of this <u>Section 3.02(b)</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)make any amendment, alteration, waiver or repeal of the organizational documents of (A) the Company (including this Agreement or the Master Agreement) or (B) its Subsidiaries (other than in the case of clause (B) for such amendments that would not reasonably be expected to have an adverse impact on the Company or any Member);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) enter into a new line of business of the Company or any of its Subsidiaries; (B) exit from, or materially deviating from the purpose of the Company as set forth in clauses (a) through (d) of <u>Section 2.05</u>; or (C) materially modify the mix of catalogs that are being considered for acquisition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)enter into, amend, modify, terminate, waive or enforce any rights under, or exercise any rights of approval under, any transaction or agreement between (A) the Company or any of its Subsidiaries, on one hand, and (B) the Warner Member or an Affiliate or employee of the Warner Member (when such consent right is exercised by the BCSS Member) or the BCSS Member or an Affiliate or employee of the BCSS Member (when such consent right is exercised by the Warner Member), on the other hand (including the Commercial Agreements and any provision therein), other than: (1) expense reimbursement pursuant to <u>Section 4.05</u>; (2) any customary provision of indemnification, advancement of expenses or exculpation of liability to any Managers and Officers, in each case, as set forth herein; or (3) any exercise of rights under this Agreement (including <u>Section 4.09</u>, but excluding for the avoidance of doubt, a Sale of the Company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)consummate any merger, consolidation or other business combination transaction involving the Company or any of its Subsidiaries or any sale of all or substantially all of the assets of the Company or any of its Subsidiaries, in each case, except for any transaction permitted by Section 8.04 or Section 8.06 of the Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)cause the Company or its Subsidiaries to enter into any partnerships or joint venture, in each case, except for any transaction permitted by Section 8.04 or Section 8.06 of the Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)other than the acquisition of In-Scope Catalogs, cause the Company or any of its Subsidiaries to acquire equity interests, assets or businesses of any Person (in each case other than a wholly-owned Subsidiary of the Company);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)make any dispositions by the Company or its Subsidiaries of equity interests or businesses (including, for the avoidance of doubt, assets), in each case, except for any transaction permitted by Section 8.04 or Section 8.06 of the Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)(A) declare bankruptcy (or acquiescence with respect thereto), dissolution (to the fullest extent permitted by applicable Legal Requirement) or liquidation or (B) recapitalize or reorganize in any form of transaction, in each case of clauses (A) and (B), of the Company or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)change or elect the Company's or its Subsidiaries' tax structure, Federal income tax classification or domicile;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)issue new securities of any type that are, or may be convertible into or exchangeable or exercisable for, Interests (other than calling the Initial Commitment Amounts to the extent necessary to fund acquisitions otherwise permitted hereby or by the Master Agreement and the issuance of Class A Units in connection therewith pursuant to Section 3.01 of the Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)make any declaration or payment of dividends or other distributions other than in accordance with Section 5.02 of the Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)incur or authorize the incurrence of any Indebtedness (including any refinancing Indebtedness) other than borrowings under the Warehouse Facility; <u>provided</u>, that if the Board has approved any incurrence of Indebtedness pursuant to any "incremental" or "accordion" provisions contained in the Warehouse Facility, neither the BCSS Member's consent nor the Warner Member's consent will be required for such incurrence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)make any loan or advance to any person, except (A) advances, contractual commitments and similar expenditures in the ordinary course of business or (B) to a wholly-owned Subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)appoint or remove the Company's or its Subsidiaries' auditors and approval of the Company's standalone financial statements produced for the purposes of satisfying Section 11.04 of the Master Agreement, unless such auditor is the auditor of the audited financial statements of the Warner Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)make any material changes in the Company's or its Subsidiaries' accounting policies or any of the Company's or its Subsidiaries' audit or accounting practices (including with respect to reserves) other than (A) as required by GAAP or applicable Legal Requirement (in which case the Board will reasonably consult with the BCSS Member prior to, and use commercially reasonable efforts to take its views into account when, implementing such changes) or (B) changes instituted across all of the Warner Member's U.S. Subsidiaries that are consistent with GAAP and do not disproportionately affect the BCSS Member as compared to the Warner Member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) (A) establish or modify the material tax policies, methods and procedures utilized by the Company or any of its Subsidiaries; (B) make any material tax election (including any entity classification election), allocation (including under Section 3.04 or Section 6.03 of the Master Agreement) or determination (except that each of the BCSS Member and the Warner Member shall be permitted to require a Section 754 election); (C) take any material action in connection with any tax audit or other tax proceeding relating to the Company or its Subsidiaries; or (D) make any determination with respect to withholding taxes or Imputed Underpayment Amounts allocable to a Member under Section 5.04 or Section 7.03 of the Master Agreement;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)undertake any public offering (including, but not limited to, an Initial Public Offering or reverse takeover transaction) by the Company or any of its Subsidiaries or taking any other action to become a public company, in each case, except for any transaction permitted by <u>Section 8.04</u> of the Master 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii)settle (A) any defensive litigation and any other defensive legal proceeding (1) for an amount that would require the Beethoven Entities (as defined in the Master Agreement) or any of their Subsidiaries to collectively pay in excess of $5,000,000; (2) that has had or could have an adverse reputational impact on the BCSS Member, the Warner Member or any of their respective Affiliates; or (3) of a criminal nature or involving material injunctive or similar relief or (B) any litigation that relates to any of the Beethoven Entities or any of their Subsidiaries or any of their respective businesses, properties or assets in which the BCSS Member or the Warner Member or any Affiliate thereof is a named party; 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix)create or suffer to exist any lien upon any property or assets of the Company or any Subsidiary now owned or hereafter acquired, leased or licensed by it (other than in connection with any Warehouse Facility or that is otherwise approved by the BCSS Member and the Warner Member);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx)make any assignment or compromise for the benefit of the Company's or its Subsidiaries' creditors or take any action that would cause the Company or any of its Subsidiaries to become insolvent; 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;(xxi)authorize, commit or agree to take any action described in this Section <u>3.02(b)</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;(c)<u>No Grant of Dissenters Rights or Appraisal Rights; Other Voting Matters</u>. In no manner shall this Agreement or the Master Agreement be construed to grant to any Member, and each Member hereby waives, any dissenter's rights or appraisal rights. The Members hereby expressly waive rights under Section 18-210 and Section 18-801 of the Delaware Act in all circumstances and grant to the Board (subject to Section <u>3.02(b)</u> and Section 8.04 and Section 8.06 of the Master Agreement) the sole right to approve or consent to a merger or consolidation of the Company without approval or consent of the Members.

Section 3.03<u>Withdrawals</u>. Except as expressly provided elsewhere in this Agreement, or in Article V and Article IX of the Master Agreement, no Member shall have any right (a) to withdraw as a Member from the Company so long as such Member continues to hold any Interests; (b) to withdraw from the Company all or any part of such Member's Capital Contributions; (c) to receive property other than cash in return for such Member's Capital Contributions; or (d) to receive any distribution from the Company.

Section 3.04<u>Liability of the Members Generally</u>. Except as required by non-waivable provisions of the Delaware Act, no Member shall be liable for any debts, liabilities, contracts or obligations of the Company or any Subsidiary of the Company whatsoever; <u>provided</u>, that nothing contained in this Section <u>3.04</u> shall be deemed to modify or limit any liabilities or obligations of any Member (or Affiliate thereof) under any contract or agreement to which Member (or Affiliate thereof) is party other than solely in its capacity as a Member. Each of the Members acknowledges that its Capital Contributions are subject to the claims of any and all creditors of the Company to the extent provided by the Delaware Act and other applicable Legal Requirements.

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**Article IV<br>MANAGEMENT**

Section 4.01<u>Management of the Company by the Board of Managers</u>. In accordance with Article IV of the Master Agreement, the management, operation and control of the business and affairs of the Company shall be vested exclusively in or under the direction of a board of managers of the Company (the "<u>Board</u>" and, each such manager, a "<u>Manager</u>"), except as otherwise expressly provided for in this Agreement or in the Master Agreement. Managers need not be Members. The Board shall have full and complete power, authority and discretion, on behalf of and in the name of the Company, to enter into and perform all contracts and other undertakings that it may deem necessary or advisable to carry out any and all of the objects and purposes of the Company. It is expressly understood and agreed that if any particular Board consent or approval is required hereunder for the Company to take any action or make any determination or decision, then no such action, determination or decision may be taken or made by any Subsidiary thereof without the Company's approval in its capacity as such Subsidiary's direct or indirect controlling equity holder or general partner pursuant to the same Board consent or approval, as the case may be, in the manner contemplated hereby. The Company shall cause each of its Subsidiaries and each such Subsidiary's board of directors or other governing body to give effect to the foregoing sentence. A Manager acting individually will not have the power to bind the Company. Each Manager shall be a "Manager" (as the term is defined in the Delaware Act) of the Company, but, notwithstanding the foregoing, no Manager shall have any rights or powers beyond the rights and powers expressly granted to such Manager in this Agreement.

Section 4.02<u>Board Actions</u>. All decisions, determinations and actions of the Board shall require the approval of at least such Managers holding not less than a majority of the voting power of all Managers who are designated and qualified at such time and in attendance at any meeting of the Board in which a quorum is present. Each Manager shall be entitled to cast one (1) vote on all matters coming before the Board; <u>provided</u>, that if less than all of the available Board seats to be designated by a Member have been so designated or less than all Managers designated by a Member are present at a meeting, then the Manager(s) designated by such Member who are present at the meeting shall be entitled to cast a number of votes, in the aggregate, equal to the total number of Managers that such Member is entitled to designate.

Section 4.03<u>Meetings of the Board</u>. The Board shall meet at such time and at such place (either within or outside of the State of Delaware) as the Board may designate, and the Board shall have such intervening special meetings at the written request of any Manager on at least ten (10) Business Days' written notice (such notice shall state the purpose for which such meeting is being called). Any meeting of the Board may be held in person, telephonically or by video conference.

&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>Notice</u>. The Company and the Board shall, unless mutually waived (in writing) by a BCSS Manager and a Warner Manager, give all Managers at least two (2) Business Days' notice of all regular meetings of the Board, which notice may be given in writing or by means of electronic transmission.

&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>Attendance and Waiver of Notice</u>. Attendance of a Manager at any meeting shall constitute a waiver of notice of such meeting, except where a Manager attends a meeting for the express purpose of objecting to the transaction of any business on the ground that the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of any regular meeting of the Board, need be specified in the notice or waiver of notice of such meeting.

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&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)<u>Quorum</u>. At all meetings of the Board, a quorum shall consist of at least one (1) BCSS Manager and one (1) Warner Manager. If quorum does not exist, the meeting of the Board shall be adjourned until such time as quorum exists. The Company shall provide for telephonic or video participation. If quorum is not achieved at any duly called meeting, such meeting may be postponed to a time no earlier than forty-eight (48) hours after written notice of such postponement has been given to the Managers (which may be delivered electronically). If no BCSS Manager or Warner Manager, as applicable, is present at two (2) consecutive meetings for which notice was duly given in accordance with the terms hereof, a majority of the Managers then in office shall constitute a quorum solely for the next meeting of the Board called for the same purpose.

&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)<u>Actions Without a Meeting</u>. Notwithstanding any other provision contained in this Agreement or in the Master Agreement, any action of the Board may be taken without a meeting if written consent(s) setting forth the action to be taken shall be consented to or approved, in writing and signed by the requisite number of Managers to authorize or take such action at a meeting, which must include at least one (1) BCSS Manager and one (1) Warner 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;(e)<u>Proxies</u>. Each Manager may authorize another individual (who may or may not be a Manager, but who shall be an officer or employee of the Member that appointed such Manager or an Affiliate of such Member) to act for such Manager by proxy at any meeting of the Board, or to express consent or dissent to a Company action in writing without a meeting. Any such proxy may be granted in writing, by electronic transmission or as otherwise permitted by Legal Requirements.

Section 4.04<u>Officers</u>. The Board may, from time to time as it deems advisable, appoint executive officers of the Company or any Subsidiary thereof, including a Chief Executive Officer, a Chief Financial Officer and a Chief Investment Officer, each of whom shall act at the direction and under the supervision of the Board (each, an "<u>Officer</u>"), and assign in writing titles to any such Person. Unless the Board decides otherwise, if the title given to any Officer is one commonly used for officers of a business corporation formed under the General Corporation Law of the State of Delaware, the assignment of such title shall constitute the delegation to such Person of the authorities and duties that are normally associated with that office, subject at all times to the direction and supervision of the Board. Any delegation pursuant to this <u>Section 4.04</u> may be revoked at any time by the Board and, for the avoidance of doubt, any Officer may be removed from his or her capacity as such by the Board. In addition, the Board is authorized to employ, engage and dismiss, on behalf of the Company or any Subsidiary thereof, any Person, including an Affiliate of any Member, to perform services for, or furnish goods to, the Company or any Subsidiary thereof.

Section 4.05<u>Compensation; No Employment</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)Each Manager shall serve without compensation in his or her capacity as such. Each Manager shall be entitled to reimbursement from the Company for his or her reasonable and necessary out-of-pocket expenses incurred in the performance of his or her duties as a Manager, pursuant to such policies (if any) as may from time to time be established by the Board (including the consent of at least one (1) BCSS 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;(b)This Agreement does not, and is not intended to, confer upon any Manager any rights with respect to employment by the Company, and nothing herein shall be construed to have created any employment agreement or relationship with any Manager.

Section 4.06<u>No Personal Liability</u>. Except as otherwise provided in the Delaware Act or by Legal Requirements, no Member or Manager will be obligated personally for any debt,

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obligation, or liability of the Company, whether arising in contract, tort or otherwise, solely by reason of being a Member or Manager.

Section 4.07<u>Exculpation</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)Subject to applicable Legal Requirements, no Indemnified Party (in its capacity as an Indemnified Party) shall be liable, in damages or otherwise, to the Company, any Subsidiary of the Company or any other Indemnified Party for any act or omission performed or omitted by such Indemnified Party in good faith that relates to the Company or any of its Subsidiaries (including any act or omission performed or omitted by such Indemnified Party in reliance upon and in accordance with the opinion or advice of experts, including legal counsel as to matters of law, accountants as to matters of accounting, or investment bankers or appraisers as to matters of valuation), except (i) for any act taken by such Indemnified Party purporting to bind the Company or any Subsidiary thereof that has not been authorized pursuant to and in accordance with the terms set forth in this Agreement or the Master Agreement; (ii) for such Indemnified Party's gross negligence or willful misconduct; or (iii) for any breach by such Indemnified Party of the terms set forth in this Agreement, the Master Agreement or any other agreement, instrument or policy to which such Indemnified Party is a party or otherwise bound, including any employment, restrictive covenant or other agreement or arrangement (including employee policies of the Company or any of its Subsidiaries) relating to the employment of or provision of services to the Company or its Subsidiaries; <u>provided</u>, that, for the avoidance of doubt, the foregoing exculpation shall not apply to matters arising pursuant to the terms of any contract or agreement (other than this Agreement or the Master Agreement or any agreement contemplated hereby or thereby) or other commercial transactions (other than the transactions subject to this Agreement or the Master Agreement or any transaction contemplated hereby or thereby) between or among the Company or any Subsidiary, on the one hand, and any Indemnified Party, on the other hand. To the maximum extent permitted by Legal Requirements, the Person bringing a claim against any Indemnified Party shall bear the burden of establishing a *prima facie* case that an Indemnified Party is not entitled to the benefit of the exculpation provisions set forth in this <u>Section 4.07(a)</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)To the fullest extent permitted by Legal Requirements, and, except as otherwise expressly provided in this <u>Section 4.07(b)</u>, notwithstanding any other provision of this Agreement, the Master Agreement or in any agreement contemplated herein or therein, or applicable provisions of law or equity or otherwise, neither any Member nor any Manager (and excluding, for the avoidance of doubt, any Member or Manager that is also a consultant or employee of the Company to the extent acting in such capacity), acting in such Person's capacity as such, shall (i) be deemed to have any fiduciary or other duties to the Company, any Subsidiary of the Company or any Member or such Member's Affiliates, other than the duty to comply with the implied contractual covenant of good faith and fair dealing, or (ii) be obligated to do or perform any act or thing in connection with the Company or its Subsidiaries not expressly set forth in this Agreement or the Master Agreement or any agreement contemplated hereby or thereby. Without limiting the foregoing, the provisions of this Agreement and the Master Agreement, to the extent that they restrict the duties and liabilities of any Manager or any Member otherwise existing at law or in equity, are agreed by the parties hereto to replace such other duties and liabilities of such Persons, to the maximum extent permitted by applicable Legal Requirements. Notwithstanding anything to the contrary contained in this Agreement, each of the Members (on behalf of themselves and their Affiliates) hereby acknowledges and agrees that each of the Managers, in determining whether or not to vote in support of or against any particular decision for which the Board's consent or approval is required, may act in and consider the best interest of the Member or Members who designated such Manager and shall not be required to act in or consider the best interests of the Company, its Subsidiaries or the other Members or their respective Affiliates.

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Section 4.08<u>Indemnification</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)To the fullest extent permitted by applicable Legal Requirements, the Company shall and does hereby agree to indemnify, defend, and hold harmless each Manager and each Member, the Partnership Representative, the Liquidator and any of their respective Affiliates and representatives and any such Persons' respective officers, directors, employees, shareholders, partners, managers and members, and each Officer (each, an "<u>Indemnified Party</u>" in its respective foregoing capacity, each of which shall be, in such capacity, a third-party beneficiary of this Agreement solely for purposes of <u>Section 4.06</u> and this <u>Section 4.08</u>), from and against any loss, expense or damage incurred by such Indemnified Party for any act or omission taken or suffered by such Indemnified Party in good faith (including any act or omission taken or suffered by such Indemnified Party in reliance upon and in accordance with the opinion or advice of experts, including, legal counsel as to matters of law, accountants as to matters of accounting, or investment bankers or appraisers as to matters of valuation) in connection with the business of the Company or its Subsidiaries, including reasonable attorneys' fees, any amounts obligated to be paid in a judgment or claim, and any amount expended in the settlement of any claims of loss or damage, except with respect to (i) any act taken by such Indemnified Party purporting to bind the Company or any Subsidiary thereof that has not been authorized pursuant to this Agreement or the Master Agreement, pursuant to any other agreement to which the Company is a party, or by the Board (or any applicable governing body), as appropriate; (ii) such Indemnified Party's gross negligence or willful misconduct; (iii) any breach by such Indemnified Party of the terms set forth in this Agreement, the Master Agreement or any other agreement, instrument or policy to which such Indemnified Party is a party or is otherwise bound, including any employment, restrictive covenant or other agreement or arrangement (including employee policies of the Company or any of its Subsidiaries) relating the employment of or provision of services to the Company or its Subsidiaries; or (iv) any suit, action, proceeding, arbitration or similar matter (or any threat thereof) that is commenced (or threatened to be commenced) by or on behalf of such Indemnified Party (other than, to the extent authorized by the Board or in a successful lawsuit, action or proceeding to enforce its rights under this Agreement), including any of the foregoing commenced (or threatened to be commenced) against the Company or any Subsidiary thereof or any other Indemnified Party or other Member or Manager; <u>provided</u>, that, for the avoidance of doubt, the foregoing indemnification rights and obligations shall not apply to matters arising pursuant to the terms of any contract or agreement (other than this Agreement or the Master Agreement or any agreement contemplated hereby or thereby) or other commercial transactions (other than the transactions subject to this Agreement or the Master Agreement or any agreement contemplated hereby or thereby) between or among the Company or any Subsidiary, on the one hand, and any Indemnified Party, on the other hand.

&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)Promptly following receipt of notice in respect of any claim, litigation or other matter in respect of which any Indemnified Party intends to seek indemnification pursuant to this <u>Section 4.08</u>, such Indemnified Party shall deliver written notice thereof to the Company, and thereafter the Company shall have the right (at its expense) to assume and control the defense thereof with counsel selected by the Company and reasonably satisfactory to such Indemnified Party. Each Indemnified Party shall reasonably consult with the Board prior to the settlement, compromise or consent to entry of judgment with respect to any claim for which it is seeking indemnification. Notwithstanding the foregoing, no Indemnified Party shall be entitled to be indemnified, defended, or held harmless by the Company with respect to any matter if such Indemnified Party shall settle, consent to entry of a judgment, compromise or take similar action in respect of any such matter without the prior written consent of the Company.

&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 satisfaction of any indemnification obligation pursuant to this <u>Section 4.08</u> shall be from and limited to Company assets (including available insurance) and no Member or Board, in such capacity, shall be subject to personal liability therefor.

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&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)Expenses reasonably incurred by an Indemnified Party in defense or settlement of any claim that are subject to a right of indemnification hereunder shall be advanced by the Company prior to the final disposition thereof upon receipt of an undertaking (in form and substance reasonably satisfactory to the Board) by or on behalf of such Indemnified Party to repay such amount to the extent that it shall be determined upon final adjudication after all possible appeals have been exhausted that such Indemnified Party is not entitled to be indemnified 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;(e)The Company may purchase and maintain insurance on behalf of one or more Indemnified Parties and other Persons against any liability which may be asserted against, or expense which may be incurred by, any such Person in connection with the Company's activities.

&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 Company hereby acknowledges that, in addition to the rights provided to the Managers pursuant to this Agreement and any indemnification agreements that any Manager may enter into with the Company from time to time to (the "<u>Indemnification Agreements</u>") (as beneficiaries of such rights, a Manager appointed by any Member is herein referred to as a "<u>Manager Indemnitee</u>"), the Manager Indemnitees may have certain rights to indemnification or advancement of expenses provided by, or insurance obtained by, the Members, as applicable, or certain of their Affiliates (excluding the Company and its Subsidiaries), whether now or in the future (collectively, the "<u>Member Indemnitors</u>"). Notwithstanding anything to the contrary in any of the Indemnification Agreements or this Agreement, the Company hereby agrees that, with respect to its indemnification and advancement obligations to the Manager Indemnitees under the Indemnification Agreements, this Agreement or otherwise, the Company (i) is the indemnitor of first resort (i.e*.*, its obligations to indemnify the Manager Indemnitees are primary and any obligation of the Member Indemnitors or their insurers to advance expenses or to provide indemnification for the same expenses or liabilities incurred by any of the Manager Indemnitees is secondary and excess); (ii) shall be required to advance the full amount of expenses incurred by each Manager Indemnitee and shall be liable for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement by each Manager Indemnitee or on his or her behalf to the extent legally permitted and as required by this Agreement and the Indemnification Agreements, without regard to any rights such Manager Indemnitees may have against the Member Indemnitors or their insurers; and (iii) irrevocably waives, relinquishes and releases the Member Indemnitors and such insurers from any and all claims against the Member Indemnitors or such insurers for contribution, by way of subrogation or any other recovery of any kind in respect thereof. In furtherance and not in limitation of the foregoing, the Company agrees that in the event that any Member Indemnitor or its insurer should advance any expenses or make any payment to a Manager Indemnitee for matters subject to advancement or indemnification by the Company pursuant to an Indemnification Agreement, this Agreement or otherwise, the Company shall promptly reimburse such Member Indemnitor or insurer and that such Member Indemnitor or insurer shall be subrogated to all of the claims or rights of such Manager Indemnitee under the Indemnification Agreements or this Agreement, including to the payment of expenses in an action to collect. The Company agrees that any Member Indemnitor or its insurer not a party hereto shall be an express third party beneficiary of this <u>Section 4.08(f)</u>, able to enforce such clause according to its terms as if it were a party hereto. Nothing contained in the Indemnification Agreements is intended to limit the scope of this <u>Section 4.08(f)</u> or the other terms set forth in this Agreement or the rights of the Member Indemnitors or their insurers hereunder.

Section 4.09<u>Affiliated Agreements</u>. Notwithstanding anything to the contrary elsewhere in the Master Agreement or this Agreement, including Section <u>3.02(b)</u>, without any consent or approval of the Board or any other Member, the BCSS Member (or BCSS Managers, as applicable) shall have the right to cause the Company or any of its Subsidiaries to grant any

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consent under, waive compliance with any term or provision of, settle any claim under, declare any default under, agree to any renewal, extension, amendment or modification of, make any determination or exercise any right or remedy of the Company or such Subsidiary (including the right to terminate or rescind) in respect of any transaction or arrangement or pursuant to the terms of any agreement between the Company or its Subsidiaries, on the one hand, and the Warner Member or any Affiliate of the Warner Member, on the other hand (including the Commercial Agreements).

**Article V<br>[RESERVED]**

**Article VI<br>TRANSFERS**

Section 6.01<u>Transfers of Interests</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 Interests are subject to the restrictions on Transfer (and exceptions therefrom) set forth in the Master 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;(b)No direct Transfer of any Interests shall be effective unless and until the Member proposing to make such Transfer has caused the Transferee to execute and deliver to the Company a joinder agreement, substantially in the form attached as <u>Exhibit A</u> hereto (a "<u>Joinder Agreement</u>"); <u>provided</u> that in no case shall any Transfer result in a duplication of rights hereunder and in the event any Transfer would result in a duplication of such rights, as a condition of such Transfer, such rights shall be allocated to either the Transferee or the Transferor to the reasonable satisfaction of the Company, as determined by the Board.

&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)Pursuant to the Joinder Agreement, each Transferee hereby represents and warrants to the Company and each Member that, as of the date that such Transferee becomes a party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)such Transferee is duly organized, validly existing and in good standing under the laws of the jurisdiction where it purports to be organized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)such Transferee has full power and authority to enter into and perform its obligations 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)all actions necessary to authorize such Transferee's signing and delivery of this Agreement, and the performance of its obligations under it, have been duly taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)this Agreement has been duly signed and delivered by a duly authorized officer or other representative of such Transferee and constitutes the legal, valid and binding obligation of such Transferee enforceable in accordance with its terms (except as such enforceability may be affected by applicable bankruptcy, insolvency or other similar laws affecting creditors' rights generally, and except that the availability of equitable remedies is subject to judicial 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)no consent, approval, authorization, order, filing, registration or qualification of any other Person or Governmental Body is required in connection with the signing, delivery and performance of this Agreement by such Transferee that has not been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 signing, delivery and performance of this Agreement do not violate, conflict with or result in a breach, or constitute a default (with or without notice or lapse

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of time or both) under any provision of the organizational documents of such Transferee or any material agreement to which such Transferee is a party or by which it is bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)such Transferee is an "accredited investor" as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)such Transferee has acquired its Interests for itself for investment purposes only, and not with a view to any resale or distribution of such Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)SUCH TRANSFEREE HAS BEEN ADVISED AND UNDERSTANDS THAT SUCH INTERESTS HAVE NOT BEEN AND SHALL NOT BE REGISTERED UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS AND, THEREFORE, CANNOT BE TRANSFERRED, OFFERED TO BE TRANSFERRED OR RESOLD UNLESS SUCH INTERESTS ARE REGISTERED UNDER THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS, OR UNLESS EXEMPTIONS FROM REGISTRATION ARE 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)such Transferee has, either alone or with its "purchaser representatives" as that term is defined in Rule 501(h) under the Securities Act, such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Company; 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;(xi)such Transferee can afford to suffer the complete loss of such Transferee's Interests and such Transferee's financial situation is such that such Transferee can afford to bear the economic risk of holding the Interests for an indefinite 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;(d)Each Transferee further acknowledges that the Company has made available to such Transferee, at a reasonable time prior to its acquisition of its Interests, the opportunity to ask questions and receive answers concerning the terms and conditions of such acquisition and to obtain any additional information which the Company possesses or can acquire without unreasonable effort or expense that is necessary to verify the accuracy of the information furnished by the Company in connection with such acquisition.

&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 purported Transfer of Interests of any Member that is not in compliance with this Agreement and the Master Agreement shall be null and void *ab initio* and of no force and effect whatsoever. Furthermore, the Member engaging or attempting to engage in such Transfer shall indemnify and hold harmless the Company and each of the other Members from all losses that such indemnified Persons may incur (including incremental tax liability and legal fees and expenses) in connection with the invalid Transfer, including in enforcing the provisions of this Agreement. The bankruptcy of a Member or any other event resulting in the withdrawal of any Member from the Company shall (in each case) not cause a dissolution of the Company.

**Article VII<br>AMENDMENTS; NOTICES**

Section 7.01<u>Amendments by the Members</u>. Subject to the terms set forth in this Agreement (including <u>Section 3.02(b)</u>), this Agreement may be modified or amended and any provision hereof may be waived from time to time as determined by the Board.

Section 7.02<u>Method for Notices</u>. In the event a notice or other document is required to be sent hereunder to the Company or any Member, such notice or other document shall be in writing and shall be (a) delivered by personal delivery; (b) sent by e-mail transmission; <u>provided</u> 

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that either receipt is confirmed by return e-mail transmission or such notice or document is also sent or delivered by one of the other delivery methods described in this Section <u>7.02</u>; (c) sent by express overnight delivery or courier service; or (d) sent by United States registered or certified mail, return receipt requested and, postage and other fees prepaid. In the event a notice or other document is transmitted by the methods described by clauses (a), (c) or (d) above, such notice or other document shall, as a courtesy, also be sent by email transmission. Each notice and other document sent or delivered pursuant to this <u>Section 7.02</u> shall be considered given and received, (i) in the case of personal delivery, on the day such notice or document is personally delivered; (ii) in the case of e-mail delivery, on the day actually sent (with confirmation of transmission received by the sender without a bounceback); (iii) in the case of delivery by United States mail, on the fifth (5th) Business Day following the day on which such notice or other document is deposited in the mail; and (iv) in the case of express overnight delivery or courier service, the day following deposit with such delivery or courier service. Any notice and document shall be addressed, if to the Company, to the address of its principal place of business, and if to any Member, to the respective address for such Person listed on <u>Schedule I</u>. The Company or any Member or their respective legal representatives may effect a change of address for purposes of this Agreement by giving written notice of such change to the Company and each Member.

**Article VIII<br>REPRESENTATIONS**

Section 8.01<u>Independent Inquiry</u>. Each Member acknowledges, agrees, represents and warrants that it has completed its own independent inquiry and has relied fully upon the advice of its own legal counsel, accountant, financial and other advisors in determining the legal, tax, financial and other consequences of this Agreement and the Master Agreement and the transactions contemplated hereby and thereby and the suitability of this Agreement and the Master Agreement and the transactions contemplated hereby and thereby for such Member and its particular circumstances and, except for representations or warranties that are expressly set forth in this Agreement or the Master Agreement, has not relied upon any representations or advice by any other Member or the Board or the Company or any due diligence or investigation by any other Member or any other Person (except, in the case of the Company, for any representations and warranties expressly set forth in the a written subscription agreement or similar document entered into by the Company in connection with the issuance to such Member of any Interests owned thereby). Without limiting the generality of the foregoing, each Member acknowledges, agrees, represents and warrants that (a) it has completed its own independent inquiry as to the investment risks associated with its respective Interests; (b) any projections or assumptions as to potential returns that have previously been submitted to such Member by the Company or any other person Affiliated with the Company are not guarantees of actual returns; and (c) no representations, warranties or guarantees have been made to such Member as to the returns or performance of the Company by any of the Board, the Company or any other person Affiliated with the Company. The parties hereto have voluntarily agreed to define their rights, liabilities and obligations respecting the subject matter of this Agreement and the Master Agreement exclusively in contract pursuant to the express terms and provisions of this Agreement and the Master Agreement; and the parties hereto expressly disclaim that they are entitled to any remedies other than those for breach of contract and those expressly set forth in this Agreement and the Master Agreement; <u>provided</u>, that nothing contained herein shall be deemed a waiver of any claims or remedies for fraud.

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**Article IX<br>GENERAL PROVISIONS**

Section 9.01<u>Governing Law; Submission to Jurisdiction; Waiver of Jury Trial</u>. This Agreement, and any matter or dispute that may be based upon, arise out of or relate to this Agreement (whether in contract, tort or statute), or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement), shall be governed by and enforced in accordance with the internal laws of the State of Delaware without giving effect to its choice of law provisions that would result in the application of the laws, rules or provisions of another jurisdiction. Each of the parties hereto irrevocably agrees that any legal action or proceeding arising out of this Agreement or otherwise relating to any of the Company's constitutive documents shall be brought only in the Delaware Court of Chancery first, and then if the Court of Chancery does not have subject matter jurisdiction in the State or Federal courts located in Wilmington, Delaware. Each party hereto irrevocably consents to the service of process outside the territorial jurisdiction of such courts in any such action or proceeding by the mailing of such documents by registered United States mail, postage prepaid, if to the Company, to the address of its principal place of business, and if to any Member, to the respective address for such Person listed in the Company's books and records for the delivery of notices to Members. Each party hereby waives, to the fullest extent permitted by applicable Legal Requirements, any right it may have to a trial by jury in respect to any litigation directly or indirectly arising out of, under or in connection with this Agreement, any agreement entered into in connection with this Agreement or any transaction contemplated hereby or thereby. Each party (a) certifies that no representative, agent or attorney of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce that foregoing waiver and (b) acknowledges that it and the other parties hereto have been induced to enter into this Agreement, as applicable, by, among other things, the mutual waivers and certifications in this <u>Section 9.01</u>.

Section 9.02<u>Counterparts</u>. This Agreement may be executed in counterparts, each one of which shall be deemed an original and all of which together shall constitute one and the same Agreement.

Section 9.03<u>Construction; Headings</u>. Whenever the feminine, masculine, neuter, singular or plural shall be used in this Agreement, such construction shall be given to such words or phrases as shall impart to this Agreement a construction consistent with the interest of the Members entering into this Agreement. Where used herein, the term "<u>Federal</u>" shall refer to the U.S. Federal government. As used herein, (a) "or" shall mean "and/or"; (b) the terms "hereof", "herein", "hereby" and derivative or similar words refer to this entire Agreement; (c) the terms "Article" or "Section" refer to the specified Article or Section of this Agreement and the terms "Schedule" or "Exhibits" refer to the Schedules and Exhibits attached hereto, each of which is made a part hereof for all purposes; and (d) "including" or "include" shall mean "including, without limitation." Whenever this Agreement refers to a number of days, such number shall refer to calendar days unless Business Days are specified. The headings and captions herein are inserted for convenience of reference only and are not intended to govern, limit or aid in the construction of any term or provision hereof. Reference to any agreement, document or instrument means such agreement, document or instrument as amended or otherwise modified from time to time in accordance with the terms thereof, and, if applicable, hereof. It is the intention of the parties that every covenant, term and provision of this Agreement shall be construed simply according to its fair meaning and not strictly for or against any party (notwithstanding any rule of law requiring an Agreement to be strictly construed against the drafting party), it being understood that the parties to this Agreement are sophisticated and have had adequate opportunity and means to retain counsel to represent their interests and to otherwise

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negotiate the provisions of this Agreement. To the extent that any ambiguity or inconsistency arises with respect to any provision(s) of this Agreement, the Board shall resolve such ambiguity or inconsistency in good faith and such resolution shall be binding upon the Members.

Section 9.04<u>Severability</u>. If any term or provision of this Agreement or the application thereof to any Person or circumstances shall be held invalid or unenforceable, the remaining terms and provisions hereof and the application of such term or provision to Persons or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby.

Section 9.05<u>Waiver of Action for Partition</u>. Each of the Members irrevocably waives during the term of the Company any right that such Member may have to maintain an action for partition with respect to the property of the Company.

Section 9.06<u>Successors and Assigns</u>. Except as otherwise provided herein, all of the terms and provisions of this Agreement shall inure to the benefit of and be binding upon each of the parties hereto and their respective successors and permitted assigns and Transferees, if any; <u>provided</u>, that no Transfer of any Interests or Initial Commitments by any Member shall be made except in accordance with the provisions of Article VIII of the Master Agreement and the other applicable terms of this Agreement, and no assignment of any rights or obligations hereunder shall be made except in connection with a Transfer of Interests that is permitted pursuant to the terms hereof.

Section 9.07<u>Entire Agreement</u>. This Agreement, together with the Master Agreement, the Commercial Agreements, the Commercial Agreement Side Letters, the Warner Services Agreement and the Bain Services Agreement, and all Schedules and Exhibits of each of the foregoing, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and thereof, and supersedes any agreement or understanding entered into as of a date prior to the Effective Date among or between them with respect to such subject matter.

Section 9.08<u>No Third Party Beneficiaries</u>. It is understood and agreed among the parties that this Agreement and the covenants made herein are made expressly and solely for the benefit of the parties hereto, and that, except as otherwise expressly provided for in this Agreement, no other Person shall be entitled or be deemed to be entitled to any benefits or rights hereunder, nor be authorized or entitled to enforce any rights, claims or remedies hereunder or by reason hereof; <u>provided</u>, that (a) each Indemnified Party is an express and intended third party beneficiary of the rights of such Person set forth in <u>Section 4.07</u> and <u>Section 4.08</u> of this Agreement and Section 5.04(e) of the Master Agreement and (b) each Non-Recourse Party is an express and intended third party beneficiary of the rights of such Person set forth in <u>Section 9.14</u>.

Section 9.10<u>Remedies and Waivers</u>. Except as otherwise expressly set forth herein, no delay or omission on the part of any party to this Agreement in exercising any right, power or remedy provided by law or provided hereunder shall impair such right, power or remedy or operate as a waiver thereof. The single or partial exercise of any right, power or remedy provided by law or provided hereunder shall not preclude any other or further exercise of any other right, power or remedy. The rights, powers and remedies provided hereunder are cumulative and are not exclusive of any rights, powers and remedies provided by law.

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Section 9.11<u>Specific Performance</u>. The parties hereto agree that irreparable damage would occur if any of the provisions of this Agreement were not performed in accordance with its specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity, and shall not be required to post a bond or other collateral in connection therewith.

Section 9.12<u>No Article 8 Election</u>. So long as any pledge or hypothecation of any ownership interests is in effect, the Company shall not elect that its ownership interests become governed by Article 8 of the Uniform Commercial Code as in effect in any relevant jurisdiction without the prior written consent of all pledgees of such ownership interests or the delivery of any applicable limited liability company certificate or control agreement necessary to perfect each such pledgee's interests in the applicable ownership interests.

Section 9.13<u>Aggregation of Rights</u>. All Class A Units held by a Member and its Permitted Transferees (excluding the Company) shall be aggregated together for purposes of determining the availability of any rights under this Agreement and the Master Agreement. For the avoidance of doubt and without duplication of any rights, the rights of a Member generally hereunder may be exercised in whole or in part by the Permitted Transferees to which such Member has Transferred Interests in a Permitted Transfer; <u>provided</u>, that any rights and obligations under this Agreement and the Master Agreement that are personal to the Warner Member or the BCSS Member may not be assigned to, or be exercised by, any other Person, except that the Warner Member or the BCSS Member may assign such rights and obligations to a Permitted Transferee to whom all of its Interests have been Transferred.

Section 9.14<u>Non-Recourse Parties</u>. Each Member acknowledges and agrees that this Agreement may only be enforced against, and any claim or suit based upon, arising out of or related to this Agreement, or the negotiation, execution of performance of this Agreement, may only be brought against the Members, and then only with respect to the specific obligations set forth herein with respect to the applicable Member. Notwithstanding any provision in this Agreement to the contrary, each Member agrees on its own behalf that no Non-Recourse Party of a Member shall have any liability (whether in contract, tort or otherwise, or based upon any theory that seeks to impose liability of any entity party against its owners or Affiliates) arising under, in connection with or relating to this Agreement or the preparation, negotiation or execution hereof, and each Member irrevocably and unconditionally waives, releases and agrees (on behalf of itself, its Subsidiaries and its Affiliates) not to assert all such liabilities and claims against any such Non-Recourse Party. Without limiting the generality of the foregoing, to the maximum extent permitted by Legal Requirements, other than pursuant to and to the extent provided in this Agreement, (a) each Member hereby irrevocably and unconditionally waives and releases any and all rights, claims, demands or causes of action that may otherwise be available in equity or at law, or granted by statute, to avoid or disregard the entity form of a Member or otherwise impose liability of a Member on any Non-Recourse Party, whether granted by statute or based on theories of equity, agency, control, instrumentality, alter ego, domination, sham, single business enterprise, piercing the veil, unfairness, undercapitalization or otherwise; and (b) each Member irrevocably and unconditionally disclaims any reliance upon any Non-Recourse Parties with respect to the performance of this Agreement. The Non-Recourse Parties are expressly intended as third-party beneficiaries of this Section <u>9.14</u>.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

**BEETHOVEN JV 1, LLC**

By: _<u>/s/ Angelo Rufino</u>______________<br>Name: &nbsp;&nbsp;&nbsp;&nbsp;Angelo Rufino<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;President and Treasurer

[*Signature Page to A&R LLCA of Beethoven JV 1, LLC*]

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**<u>BCSS MEMBER:</u>**

**BCSS W JV INVESTMENTS (B), L.P.**

By: BCSS W GP, LLC, its General Partner

By: Bain Capital Credit Member, LLC, its Manager

By: <u>_/s/_Andrew S. Viens</u>________________<br>Name: &nbsp;&nbsp;&nbsp;&nbsp;Andrew S. Veins<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory

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

[*Signature Page to A&R LLCA of Beethoven JV 1, LLC*]

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**WMG BC HOLDCO LLC**

By: _<u>/s/ Paul M. Robinson</u>_________________<br>Name: &nbsp;&nbsp;&nbsp;&nbsp;Paul M. Robinson<br>Title:&nbsp;&nbsp;&nbsp;&nbsp;Vice President & Secretary

[*Signature Page to A&R LLCA of Beethoven JV 1, LLC*]

## Exhibit 10.5

**Exhibit 10.5**

***Execution Version***

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [\*\*\*] INDICATES THAT THE INFORMATION HAS BEEN REDACTED.**

CREDIT AND SECURITY AGREEMENT

among

BEETHOVEN FINANCING 1, LLC,

as Initial Borrower,

THE ADDITIONAL BORROWERS FROM TIME TO TIME PARTIES HERETO,

BEETHOVEN HOLDINGS 1, LLC,

as Initial SPV Guarantor,

FIFTH THIRD BANK, NATIONAL ASSOCIATION,<br>as Joint Lead Arranger,

GOLDMAN SACHS BANK USA,

as Joint Lead Arranger,

THE ADDITIONAL GUARANTORS FROM TIME TO TIME PARTIES HERETO,

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

THE BANK OF NEW YORK MELLON,<br>as Administrative Agent,

and

THE BANK OF NEW YORK MELLON,<br>as Collateral Agent

Dated as of June 29, 2025

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**TABLE OF CONTENTS**

**Page**

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**<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;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**SCHEDULES**

SCHEDULE 1 —&nbsp;&nbsp;&nbsp;&nbsp;Lender Information

SCHEDULE 2 —&nbsp;&nbsp;&nbsp;&nbsp;Loan Party UCC and Notice Information

SCHEDULE 3 —&nbsp;&nbsp;&nbsp;&nbsp;Reporting Requirements

SCHEDULE 4 —&nbsp;&nbsp;&nbsp;&nbsp;Intellectual Property Collateral

**EXHIBITS**

EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Joinder Agreement

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Release Request

EXHIBIT C&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Notice of Borrowing

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Notice of Prepayment

EXHIBIT E&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Assignment and Acceptance

EXHIBIT F-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Copyright Security Agreement

EXHIBIT F-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Patent Security Agreement

EXHIBIT F-3&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Trademark Security Agreement

EXHIBIT G-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Lenders)

EXHIBIT G-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Participants)

EXHIBIT G-3&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Participants)

EXHIBIT G-4&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Lenders)

EXHIBIT H&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Due Diligence Summary

i

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**CREDIT AND SECURITY AGREEMENT**, dated as of June 29, 2025, by and among BEETHOVEN FINANCING 1, LLC, a Delaware limited liability company, as borrower (together with its permitted successors and assigns, the "<u>Initial Borrower</u>"), the ADDITIONAL BORROWERS from time to time party hereto, BEETHOVEN HOLDINGS 1, LLC, a Delaware limited liability company, as guarantor (together with its permitted successors and assigns, the "<u>Initial SPV Guarantor</u>"), FIFTH THIRD BANK, NATIONAL ASSOCIATION and GOLDMAN SACHS BANK USA (individually, each, a "<u>Joint Lead Arranger</u>" and, collectively, the "<u>Joint Lead Arranger</u>"), the ADDITIONAL GUARANTORS from time to time party hereto, the commercial paper conduits from time to time party hereto as Conduit Lenders (as defined herein), each of the financial institutions from time to time party hereto as Committed Lenders (as defined herein), the conduit managing agents from time to time party hereto as managing agents (individually, each, a "<u>Managing Agent</u>" and, collectively, the "<u>Managing Agents</u>"), THE BANK OF NEW YORK MELLON, as administrative agent for the Lenders (in such capacity, together with its successors and assigns, the "<u>Administrative Agent</u>"), and THE BANK OF NEW YORK MELLON, as collateral agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the "<u>Collateral Agent</u>").

**RECITALS**

WHEREAS, the Initial Borrower, together with each additional Borrower from time to time party hereto (collectively, the "<u>Borrowers</u>" and each, a "<u>Borrower</u>") intend to acquire certain Music Products and related assets from time to time and desire that the Lenders make advances on a committed basis to the Borrowers on the terms and subject to the conditions set forth in this Agreement in order to finance such acquisitions; and

WHEREAS, the Lenders have agreed to extend up to $500,000,000 in Commitment Amounts to the Borrowers (subject to increase in accordance with <u>Section 2.19</u>), the proceeds of which will be used to acquire, or refinance the acquisition of, Music Products and related assets;

WHEREAS, the Borrowers have agreed to secure their Obligations by granting to the Collateral Agent for the benefit of the Secured Parties, a first priority security interest in all of their respective assets;

WHEREAS, the Guarantors have agreed to guarantee the Obligations of the Borrowers and have agreed to secure such guarantees with a first priority security interest in all of their respective assets; and

WHEREAS, each Lender shall make such advances to the Borrowers 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<u>Definitions</u>**. As used in this Agreement, the following terms shall have the meanings indicated:

"<u>Access Investors</u>": collectively: [\*\*\*].

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"<u>Account Control Agreement</u>" means each account control agreement among one or more Borrowers, the related Approved Account Bank and the Collateral Agent, as secured party, that confers "control" (within the meaning of the UCC) over one or more deposit accounts or securities accounts to the Collateral Agent.

"<u>Acquisition Account</u>" has the meaning specified in <u>Section 8.02(d)</u>.

"<u>Acquisition/Disposition LTV Ratio</u>" means, as of any Asset Acquisition Date or the date of any Asset Sale, the percentage equivalent of a fraction, (x) the numerator of which is the Funded Facility Amount as of such date on a *pro forma* basis after giving effect to any Borrowing or Optional Prepayment, as applicable, on such date and (y) the denominator of which is the Aggregate Collateral Value as of such date *minus* the Excess Concentration Amounts.

"<u>Administration Agreements</u>" means the contractual agreements under which the Music Publishing and Master Distribution Rights, Neighboring Rights, Writer's Share of Public Performance and proceeds therefrom are administered for the benefit of the Borrowers by the existing and future Administrators.

"<u>Administrative Agent</u>" has the meaning specified in the introduction to this Agreement.

"<u>Administrator</u>" means any Person primarily engaged in the business of administering any rights in any Music Product included in the assets of the Borrowers, including, without limitation, [\*\*\*] and any of their respective Affiliates, any other music publisher, administrator, label, distributor, performance rights organization or society or collection agent, licensing agent, or any other similar licensee or user of any Music Product.

"<u>Advance</u>" has the meaning specified in <u>Section 2.03</u>.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affected Person</u>" means (a) each Lender and each of its Affiliates, and (b) any assignee or participant of any Lender.

"<u>Affiliate</u>" means, in respect of a referenced Person, another Person Controlling, Controlled by or under common Control with such referenced Person; <u>provided</u> that Persons shall not be deemed to be under common control (whether direct or indirect) solely by virtue of such Persons having a common financial sponsor.

"<u>Affiliate Transaction</u>" has the meaning set forth in <u>Section 5.02(i)</u>.

"<u>Agent</u>" means each, either or both of the Administrative Agent and the Collateral Agent, as the context may require.

"<u>Aggregate Collateral Value</u>" means, as of any date of determination, an amount equal to the sum of the Appraised Collateral Values and Non-Appraised Collateral Values of all assets in the Facility Pool as of such date.

"<u>Agreement</u>" means this Credit and Security Agreement.

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"<u>Allocable Debt</u>" means, as of any date of determination with respect to any Music Product, the aggregate amount of outstanding Advances made with respect to such Music Product as of its Acquisition Date.

"<u>Annual Catalogue Appraisal</u>" has the meaning set forth in <u>Section 5.01(o)</u>.

"<u>Anti-Corruption Laws</u>" has the meaning set forth in <u>Section 5.02(v)</u>.

"<u>Applicable Law</u>" means any Law of any Governmental Authority, including all federal, state and local laws and of other local regulatory authorities, to which the Person in question is subject or by which it or any of its assets or properties are bound.

"<u>Applicable Margin</u>" means, with respect to any Term SOFR Advance, 2.00% or, with respect to any Base Rate Advance, 1.00%.

"<u>Appraisal</u>" means a valuation or appraisal (including all Annual Catalogue Appraisals) of the fair market value of the Music Products of the Borrowers prepared by an Approved Appraiser (together with all supporting assumptions and related models and attachments) that calculates the Appraisal Value of such Music Products in accordance with the Appraisal Requirements, which valuation or appraisal shall, for the avoidance of doubt, include the projected Consolidated Net Publisher/Net Label Share attributable to the Music Products for the next twelve month period immediately succeeding the twelve month period covered by such Appraisal.

"<u>Appraisal Requirements</u>" means requirements that will be satisfied with respect to an Appraisal and its calculation of the Appraisal Value for the relevant asset or assets if:

&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)such Appraisal has been conducted by an Approved Appraiser within sixty (60) days of the delivery of such Appraisal and delivered to the 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;(b)the related Appraisal Value calculation will assume a discount rate of at least the Required Discount Rate, as applied to the expected net cash flows projected to be received by the Borrowers in respect of such asset or assets for a forecast period of no longer than fifteen (15) years, with terminal values at the end of such forecast period determined based on market accepted approaches (which may be a Gordon growth model appropriately adjusted for expectations relating to artist lifespans), and must take into account the duration of each related Copyright;

&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)as of any applicable date of determination, no value is attributed to songs or albums that are unreleased as of such date, or otherwise with respect to any cash flows that are similarly conditional upon assets that do not yet exist as of such date or are not owned by a Borrower on such date (or in the case of assets to be acquired by a Borrower, not expected to be owned by such Borrower on the related Asset Acquisition 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;(d)appropriate adjustments are made to take into account, if and as applicable: (A) genre, (B) the market position (which may include reputation and longevity) of the applicable musician or other artist within that genre, for purposes of considering decay, (C) vintage, (D) any non-traditional music rights, including without limitation rights relating to merchandising, (E) any liabilities or other amounts (including without limitation any deferred purchase price payments or earn-outs) that may be netted or deducted from Collections in respect of such asset, (F) the earlier of the scheduled date (if any) for the expiration or other termination of such asset or the cash flows arising thereunder, or the earliest date on which any such expiration or termination may occur without a Borrower's consent, including

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pursuant to the exercise of any statutory reversion rights with respect to any Copyright in favor of an author or statutory heir(s) of an author under title 17 U.S. Code §203 and §304 as such reversion rights are customarily taken into account by applicable Approved Appraisers or applicable rating agencies, in each case in this clause (F), except to the extent that the Borrowers or the Manager have demonstrated to the reasonable satisfaction of such applicable Approved Appraisers or rating agencies that the related Asset Transfer Agreement includes provisions to mitigate the risks associated with the exercise of such reversion rights; 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;(e)all other assumptions used in the Appraisal, including without limitation macro growth rates relating to streaming and applicable decay rates, are consistent with market accepted research.

"<u>Appraisal Value</u>" means, with respect to any asset or assets as of any date, the amount equal to the net present value of the expected net cash flows projected to be received by the Borrowers in respect of such asset or assets (taking into account all applicable liabilities (including any related management or administrative services fees that are effectively payable prior to the Advances, other than the Management Fee)), as determined in the most recent Appraisal in accordance with the Appraisal Requirements.

"<u>Appraised Collateral Value</u>" means, as of any date of determination with respect to any Music Products subject to an Appraisal as of such date, the lower of (i) the most recent Appraisal Value of such Music Products as of such date, and (ii) the Consolidated Net Publisher/Net Label Share attributable to such Music Products over the twelve month period immediately preceding such date multiplied by 20 (twenty); <u>provided</u> <u>that</u>, the value of any Future Compositions or Future Recordings shall be deemed to be zero.

"<u>Approved Account Bank</u>" means (a) any Lender, (b) any Person then acting as the Collateral Agent or (c) another Qualified Institution reasonably acceptable to the Required Lenders, in each case, or any Affiliate thereof then capable of acting in a similar capacity under the Facility Documents.

"<u>Approved Appraiser</u>" means (a) [\*\*\*] or (b) another valuation agent, appraisal firm or similar Person as mutually agreed between the Lead Borrower and the Required Lenders (each acting in good faith).

"<u>Artist Catalogue</u>" means, with respect to the Borrowers' assets, all of the Music Products, related Music Agreements and related Music Product Rights (including without limitation all related Music Publishing and Master Distribution Rights, Revenue-Generating Agreements and Cashflow Assets) arising from Musical Compositions and/or Master Recordings that were composed or performed by a single artist.

"<u>Asset Acquisition Date</u>" means each date on which a Music Product is acquired by any Borrower (including via the acquisition or joinder of any entity that holds any Music Products).

"<u>Asset Acquisition Package</u>" means, with respect to any asset or assets acquired or proposed to be acquired by any Borrower, an information package submitted to the Lenders (in such format and transmitted in such a manner as the Required Lenders may reasonably specify to the Manager and the Lead Borrower from time to time), that includes each 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;(a)with respect to any asset or assets (including any group of related assets acquired at substantially the same time) with an aggregate purchase price in excess of the Valuation Threshold, a

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copy of an Appraisal calculating the Appraisal Value of such asset or assets, prepared by an Approved Appraiser;

&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 copy of the applicable asset valuation model (together with all supporting assumptions and related models and attachments, including calculations demonstrating the determination of the purchase price using a minimum weighted average cost of capital) for such asset or assets, the executive summary (if any) provided to the applicable investment committees of the Manager and the Borrowers, together with any other material information deemed necessary by the Manager for the Lender's evaluation of an investment in such asset or 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;(c)a copy of the completed Asset Diligence Report for such asset or assets and related 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;(d)copies of the results of UCC, intellectual property and/or other applicable Lien searches (including, a search as to judgments, pending litigation, tax, chain-of-title for musical compositions and master recordings) determined to be satisfactory of transactions of this type by the Manager acting in accordance with the Management Standard on the relevant assets that confirm the absence of any Liens on such assets other than Permitted Liens or Liens to be released on or before the applicable Asset Acquisition 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;(e)a copy of each of (i) the final draft of the related Asset Transfer Agreement, including all ancillary transaction documents, schedules and exhibits thereto (or if the related Asset Transfer Agreement is not in final form as of the latest date required to be delivered under <u>Section 2.02(a)</u>, the then-current draft of such Asset Transfer Agreement) and (ii) if applicable to the related acquisition, a copy of each related Legacy Purchase Agreement (to the extent available to the Borrowers);

&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 the extent such asset or assets are contemplated to include Intellectual Property, (x) a copy of an updated Intellectual Property Schedule clearly identifying the Intellectual Property assets that are then contemplated to be acquired as of the related Asset Acquisition Date and (y) copies of the applicable related Intellectual Property Security Agreement as then contemplated to be entered into as of the related Asset Acquisition 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;(g)all documentation reasonably necessary (including applicable updates to Cashflow Asset schedules) to ensure that Collections in respect of such assets will be appropriately remitted to the applicable Collection Account.

"<u>Asset Acquisition Procedures</u>" has the meaning specified in <u>Section 2.02(a)</u>.

"<u>Asset Agreement</u>" means each Administration Agreement, each Asset Transfer Agreement, each Legacy Purchase Agreement, each Music Agreement, each Revenue-Generating Agreement, each Storage Facility Access Letter and each Asset Payment Instruction.

"<u>Asset Diligence Report</u>" means a due diligence summary in substantially the form attached hereto as <u>Exhibit H</u>, including an exception summary for the related Asset Transfer Agreement and a confidential information memorandum or other similar presentation detailing the relevant assets and the relevant art, which report will include the related acquisition purchase price.

"<u>Asset Files</u>" means, with respect to any Borrower, all documents and instruments evidencing such Borrower's rights in Musical Compositions, Master Recordings, lyrics, performances (including all rights to record, rerecord, produce, reproduce or synchronize any of the foregoing), all certificates of

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Copyright registration or, where expired, certificates of renewals of copyright registration, and all copyright assignments (and corresponding proofs of recordation), all documents and instruments evidencing trademarks useful or used in connection with the exploitation of, any Music Product or any music artist or musical group, and any revenue derived therefrom, all filing receipts and/or date-stamped copies of all filings pertaining, in each case, to any assets of such Borrower, including but not limited to the related Music Agreements, other Revenue-Generating Agreements, letters of instruction or direction, and royalty assignment forms.

"<u>Asset Payment Instruction</u>" means, with respect to any Asset Agreement, an agreement of each applicable obligor or payor (which may be a collection agent or similar service provider) of Collections thereunder to cause such Collections to be paid, in each case until such time as the Lead Borrower has otherwise consented or directed otherwise in writing, either to (i) a Borrower Account or (ii) an account in which a Borrower holds a perfected security interest and over which a Borrower has control (for purposes of the UCC), from which the applicable Collections will be swept to a Borrower Account within five (5) Business Days of the receipt thereof.

"<u>Asset Sale</u>" means any disposition (by way of merger, casualty, condemnation or otherwise) of a Music Product by any Borrower or any Subsidiary.

"<u>Asset Transfer Agreement</u>" means each agreement or instrument by which a Borrower or any of its assets is or proposed to be bound that governs or provides for (or is proposed to govern or provide for) the transfer of one or more assets to a Borrower.

"<u>Assignment and Acceptance</u>" means an Assignment and Acceptance in substantially the form of <u>Exhibit E</u> hereto, entered into by a Lender, an assignee and the Administrative Agent and, if applicable, the Lead Borrower.

"<u>Availability Period</u>" means the period from and including the Closing Date to and including the earlier of (a) the occurrence of an Event of Default, subject to reinstatement, with the consent of all of the Lenders and (b) the Final Maturity Date; <u>provided</u> that the Availability Period may be extended at the request of the Lead Borrower with the consent of all of the Lenders in their respective sole discretion.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, 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 Accrual Period pursuant to this Agreement 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 2.18(d)</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time 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).

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"<u>Bankruptcy Code</u>" means Title XI of the United States Code.

"<u>Bankruptcy Remote Provisions</u>" means, with respect to the Constituent Documents of any Loan Party, the definition of "Independent Manager," the definition of "Material Action," any provision relating to voting thresholds, Sections 5(c), 7, 9(d), 10, 16, 20(e), 21, 22, 23, 24, 25, 26 or 31, in each case, of its limited liability company agreement, or any equivalent provisions.

"<u>Base Rate</u>" means, for any day, a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day <u>plus</u> 0.50% and (c) Term SOFR for a one-month tenor in effect on such day <u>plus</u> 1.00%. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate or Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or Term SOFR, respectively.

"<u>Base Rate Advance</u>" means an Advance that bears interest at a rate based on the Base Rate.

"<u>Base Rate Term SOFR Determination Day</u>" has the meaning specified in the definition of "Term SOFR".

"<u>Basel III</u>" means the publication entitled "Basel III: A global regulatory framework for more resilient banks and banking systems," as updated from time to time, including any publications addressing the liquidity coverage ratio or the supplementary leverage ratio.

"<u>Benchmark</u>" 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 2.18(a)</u>.

"<u>Benchmark Replacement</u>" means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Lead Borrower, with the consent of the Required Lenders, or by the Required Lenders, acting in a commercially reasonable manner (in consultation with the Lead Borrower), giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) 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 at such time and (b) the related Benchmark Replacement Adjustment; <u>provided</u> that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Facility Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Lead Borrower, with the consent of the Required Lenders, or by the Required Lenders, acting in a commercially reasonable manner (in consultation with the Lead 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.

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"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (c) 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 or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) have 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 clause (c) and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, if such Benchmark is a term rate, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, 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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof);

&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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, 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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); or

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&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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, 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, if such Benchmark is a term rate, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90<sup>th</sup> day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means, the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Facility Document in accordance with <u>Section 2.18</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 2.18</u>.

"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"<u>BNY Account Bank</u>" means The Bank of New York Mellon, in its capacity as an Approved Account Bank under a related Account Control Agreement.

"<u>BNY Fee Schedule</u>" means the schedule of fees for services entered into between the Initial Borrower and the Agents, dated on or prior to the initial Asset Acquisition Date.

"<u>Borrower</u>" has the meaning specified in the Recitals hereto.

"<u>Borrower Account</u>" means each account, including each Managed Borrower Account and each Restricted Borrower Account.

"<u>Borrower Information</u>" means, with respect to any recipient thereof, any non-public or proprietary information provided to such Person by or on behalf of a Borrower with respect to such Borrower pursuant to this Agreement or any other Facility Document.

"<u>Borrower Interest Reserve Account</u>" has the meaning specified in <u>Section 8.02(b)</u>.

"<u>Borrower Liability Reserve Account</u>" has the meaning specified in <u>Section 2.02(a)(ix)</u>.

"<u>Borrower Payment Account</u>" has the meaning specified in <u>Section 8.02(a)</u>.

"<u>Borrowing</u>" means a borrowing consisting of simultaneous Advances of the same Type and, in the case of a SOFR Borrowing, having the same Interest Accrual Period made by the Lenders.

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"<u>Borrowing Date</u>" means the date of a Borrowing.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day that is a legal holiday under the laws of the State of New York or is a day on which banking institutions in such state are authorized or required by Law to close.

"<u>Business Objective</u>" means (i) each Borrower's objectives in acquiring additional music assets financed pursuant to this Agreement and refinancing all or a portion of the financing contemplated hereby through Permitted Securitizations (and the corresponding release of all or a portion of the Collateral), and (ii) any potential assignee's ability to assist each Borrower in realizing the foregoing objectives.

"<u>Cash</u>" means Dollars immediately available on the day in question.

"<u>Cashflow Asset</u>" means any asset that gives rise to cash proceeds in the ordinary course based on its nature or terms.

"<u>Catalogue Appraisal</u>" means, with respect to any Music Products, an Appraisal prepared in connection with the acquisition thereof that includes such Music Products and, thereafter, each Annual Catalogue Appraisal that includes such Music Products.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith or in the implementation thereof and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a "Change in Law", regardless of the date enacted, adopted, issued or implemented.

"<u>Change of Control</u>" means, the occurrence of one or more of the following events:

&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) 100% of the Equity Interests of any Subsidiary Guarantor (other than any Subsidiary Guarantor released pursuant to a Permitted Release) ceases to be directly owned by one or more Borrowers (or another Subsidiary Guarantor),

&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) 100% of the Equity Interests of any Borrower (other than any Borrower released pursuant to a Permitted Release) ceases to be directly owned by one or more SPV Guarantors,

&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) 100% of the Equity Interests of any SPV Guarantor (other than any SPV Guarantor released pursuant to a Permitted Release) ceases to be directly owned by the 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;(d) any combination of Permitted Holders shall fail to own beneficially (within the meaning of Rule 13d-5 of the Exchange Act as in effect on the Closing Date), directly or indirectly, in the aggregate 100% of the Equity Interests of the Manager, or

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&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 combination of the Warner/Bain Holders shall fail to own at least a majority of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Manager.

"<u>Closing Date</u>" means June 29, 2025.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Collateral</u>" has the meaning specified in <u>Section 7.01(a)</u>.

"<u>Collateral Agent</u>" has the meaning specified in the introduction to this Agreement.

"<u>Collateral Documents</u>" means, with respect to any asset owned by any Loan Party, each related Asset Agreement, Account Control Agreement, Intellectual Property Security Agreement and each other agreement and instrument governing such asset or any rights or obligations of such Borrower with respect thereto, together with all Proceeds thereof.

"<u>Collateral Proceeds Account</u>" has the meaning specified in <u>Section 6.02(e)</u>.

"<u>Collection Account</u>" means each deposit account established in the name of a Borrower or a Subsidiary Guarantor which shall at all times be subject to an Account Control Agreement.

"<u>Collection Period</u>" means, with respect to any Payment Date, the period beginning immediately following the end of the last Collection Period (or in the case of the first Payment Date, beginning on the Closing Date) and ending on the last day of the calendar month immediately preceding such Payment Date.

"<u>Collections</u>" means, without duplication, (a) all cash collections, distributions, payments, Proceeds and other amounts paid, payable or owing to any Borrower in respect of its assets, including without limitation all such amounts arising under any Asset Agreement, all licenses or sublicenses granted by a Borrower and any further sublicenses thereof, any proceeds of insurance, guaranties, security or other support in respect of such assets, and any sales or dispositions of any asset (and in each case, including all such collections, distributions, payments, Proceeds and other amounts without regard to whether such amounts arose in compliance with or in violation of the applicable Facility Documents or Collateral Documents), <u>plus</u> (b) all amounts earned by any Borrower in respect of interest or other income from any Borrower Account pledged hereunder <u>plus</u> (c) any DSCR Cure Contributions.

"<u>Commercial Paper</u>" shall mean, with respect to any Conduit Lender, the short-term promissory notes issued in the commercial paper market by or for the benefit of such Conduit Lender.

"<u>Committed Lender</u>" and "<u>Committed Lenders</u>" shall mean each financial institution listed as a Committed Lender in Schedule 1, and any other Person that becomes a committed lender party hereto pursuant to an Assignment and Acceptance, in each case, together with their successors and assigns.

"<u>Commitment Amount</u>" means the commitment of a Lender to make an Advance in the amount set forth on <u>Schedule 1</u> next to the name of such Lender or in an applicable Assignment and Acceptance, subject to adjustment in accordance with the terms hereof. The aggregate Commitment Amount as of the Closing Date is $500,000,000.

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"<u>Competitor</u>" means any Music Company or any fund or other entity owning or holding investments in such Person; <u>provided</u> that a Person will not be a Competitor (a) solely by virtue of such Person, fund or entity's direct or indirect ownership of less than 5% of the equity interests in a Music Company or (b) if such Person is a bank, financial institution, insurance company, or any other entity managed by registered investment advisers who regularly engage in making, purchasing or investing in commercial loans as a material portion of their business.

"<u>Conduit Assignee</u>" means, with respect to any Conduit Lender, any commercial paper conduit, whose Commercial Paper is rated at least "A-2" from S&P and/or the equivalent rating of another NRSRO registered with the SEC, that is administered by the related Managing Agent (or for which the related Program Support Provider provides liquidity support) with respect to such Conduit Lender or any Affiliate of such Managing Agent, in each case, designated by such Managing Agent to accept an assignment from such Conduit Lender of its Advances and option to make additional Advances in accordance with the terms hereof, or a portion thereof with respect to such Conduit Lender pursuant to Section 12.01(b).

"<u>Conduit Lender</u>" and "<u>Conduit Lenders</u>" shall mean each entity listed as a Conduit Lender in Schedule 1, and any other Person that becomes a conduit lender party hereto pursuant to an Assignment and Acceptance, in each case, together with their successors and assigns.

"<u>Conduit Lender Amounts</u>" has the meaning set forth in Section 12.02(b).

"<u>Conforming Changes</u>" 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 2.12</u> and other technical, administrative or operational matters) that the Required Lenders (in consultation with the Lead Borrower) decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Required Lenders (in consultation with the Lead Borrower) in a manner substantially consistent with market practice (or, if the Lead Borrower (in consultation with the Required Lenders) decides that adoption of any portion of such market practice is not administratively feasible or determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Required Lenders (in consultation with the Lead Borrower) decides is reasonably necessary in connection with the administration of this Agreement and the other Facility Documents).

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Net Publisher/Net Label Share</u>" means, for any applicable period of determination, the Net Publisher/Net Label Share received by any Borrower during such period.

"<u>Constituent Documents</u>" means in respect of any Person, the certificate or articles of formation or organization, trust agreement, 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

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any certificate of incorporation, certificate of formation, certificate of limited partnership and other agreement, similar instrument filed or made in connection with its formation or organization.

"<u>Continuing Errors</u>" has the meaning specified in <u>Section 10.03(h)(vi)</u>.

"<u>Control</u>" 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. "<u>Controlled</u>" and "<u>Controlling</u>" have the meaning correlative thereto.

"<u>Copyright License</u>" means any written agreement now or hereafter in existence granting to any Borrower, or pursuant to which any Borrower grants to any other Person, any right to use, copy, reproduce, distribute, prepare derivative works, display or publish any copyrighted material to the operations or business of such Borrower, including any agreement identified in Schedule 1 to any Copyright Security Agreement relating to such Borrower.

"<u>Copyright Security Agreement</u>" means a security agreement in substantially the form attached hereto as <u>Exhibit F-1</u>.

"<u>Copyrights</u>" means, collectively, all copyrights, whether registered or unregistered, owned by or assigned to, whether in whole or in part, any Borrower and all registrations and applications for the foregoing under the laws of the United States or any other country (whether or not the underlying works of authorship have been published), all copyrightable works of authorship (whether or not published), including registrations, recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, including the copyright registrations and copyright applications described in Schedule 1 to any Copyright Security Agreement relating to a Borrower, now existing or hereafter adopted or acquired, together with (i) all renewals and extensions of any of the foregoing, (ii) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing and (iii) all income, fees, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past, present or future infringements thereof.

"<u>Corporate Trust Office</u>" means the corporate trust office of the Collateral Agent and the Administrative Agent, located at 311 S. Wacker, Suite 6200B, Chicago, IL 60606, or such other address as such party may designate from time to time by notice to the Lenders and the Borrowers, or the principal corporate trust office of any successor collateral agent, successor administrative agent.

"<u>Covered Entity</u>" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"<u>Covered Party</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>Cure Contribution Holding Account</u>" means a Restricted Borrower Account established in order to hold Permitted Cure Contributions as contemplated by <u>Section 6.03(b)</u>, which shall be maintained with an Approved Account Bank in accordance with the related Account Control Agreement and which shall be subject to the Lien of the Collateral Agent (on behalf of the Secured Parties).

"<u>Daily Simple SOFR</u>" means, for any day (a "<u>SOFR Rate Day</u>"), a rate per annum equal to the greater of (a) SOFR for the day (such day the "<u>SOFR Determination Date</u>") that is five Business Days (or

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such other period as determined by the Required Lenders, acting in a commercially reasonable manner (in consultation with the Lead Borrower), based on one of the then prevailing market conventions) prior to (i) if such SOFR Rate Day is a Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a Business Day, the Business Day immediately preceding such SOFR Rate Day, and (b) the Floor. If by 5:00 p.m. (New York City time) on the second Business Day immediately following any SOFR Determination Date, the SOFR in respect of such SOFR Determination Date has not been published on the SOFR Website and a Replacement Event with respect to the Daily Simple SOFR has not occurred, then the SOFR for such SOFR Determination Date will be the SOFR as published in respect of the first preceding Business Day for which such SOFR was published on the SOFR Website; provided that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than five consecutive Business Days.

"<u>Default Right</u>" 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.

"<u>Defaulting Lender</u>" means any Lender that, as reasonably determined by the Lead Borrower: (a) has failed to (i) fund any Advances that have been requested and for which the conditions precedent in <u>Section 3.02</u> and <u>Section 3.03</u> have been satisfied (including, for the avoidance of doubt, any Delaying Lender for so long as such Delaying Lender has failed to fund the applicable Borrowing pursuant to Section 2.08, other than a Conduit Lender exercising its sole discretion not to fund) or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified any 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 the effect (unless such writing or public statement 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 Lead Borrower or any Borrower, to confirm in writing to the Borrowers that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Lead Borrower), or (d) has, or has other than via an Undisclosed Administration a direct or indirect parent company that has, (i) with respect to which an Insolvency Event has occurred, (ii) become the subject of a bail-in action, or (iii) had publicly 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, federal, provincial or territorial regulatory authority acting in such a capacity; 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 Lead Borrower that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender. Notwithstanding anything set forth herein to the contrary, a Defaulting Lender shall not have any voting or consent rights under or with respect to any Facility Document or constitute a "Lender" for any voting or consent rights under or with respect to any Facility Document for as long as such Lender remains a Defaulting Lender.

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"<u>Deferred Purchase Price Asset Amount</u>" means, with respect to any Collection Period, the total amount of Outstanding Collections in respect of Deferred Purchase Price Assets for such Collection Period.

"<u>Deferred Purchase Price Assets</u>" means any assets that are subject to Deferred Purchase Price Liabilities.

"<u>Deferred Purchase Price Liability</u>" has the meaning specified in <u>Section 2.02(a)()</u>.

"<u>Delayed Amount</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delayed Funding Date</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delaying Funding Notice</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delaying Funding Notice Date</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delaying Lender</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Designated Delay Lender</u>" means (i) the specific financial institutions identified by the Lenders prior to the Closing Date that the Loan Parties have indicated are acceptable and (ii) each Lender approved in writing by the Loan Parties in their sole discretion.

"<u>Determination Date</u>" means the last day of each Collection Period.

"<u>Disqualified Lender</u>" means any Person identified as such by the Lead Borrower in writing to the Lenders (with a copy to the Administrative Agent), and each Person who is known to an applicable Lender to be an Affiliate of any such Person, prior to the Closing Date as updated and from time to time thereafter with the consent of the Required Lenders (not to be unreasonably withheld).

"<u>Disqualified Person</u>" has the meaning specified in Section 12.01(i).

"<u>Distributable Cash</u>" means, with respect to any Payment Date, without duplication: (i) all Collections received with respect to the Collection Period ending immediately prior to such Payment Date, (ii) in the event any reserves were established in any Restricted Borrower Accounts for the payment of Obligations payable under and pursuant to <u>Section 2.11(a)</u>, <u>2.12</u>, <u>11.03(d)</u> or <u>11.04</u>, any amounts so reserved in such Restricted Borrower Accounts, (iii) any Permitted Cure Contributions received in respect of such Payment Date pursuant to <u>Section 6.03(a)</u>, other than any Permitted Cure Contributions required to be retained pursuant to <u>Section 6.03(b)</u>, (iv) any Permitted Cure Contributions permitted to be released to the Borrower Payment Account for application on such Payment Date pursuant to <u>Section 6.03(b)</u>, (v) all amounts constituting or otherwise received by any Borrower in respect of any Release Proceeds in connection with any Permitted Release, (vi) any amounts withdrawn from the Borrower Interest Reserve Account or a Cure Contribution Holding Account for application as Distributable Cash on such Payment Date in accordance with <u>Section 9.02</u> and (vii) on the Final Maturity Date or if an Event of Default has occurred and is continuing, all amounts on deposit in all Borrower Accounts (including all Managed Borrower Accounts).

"<u>Dodd Frank Act</u>" has the meaning specified in <u>Section 2.11(a)</u>.

"<u>Dollars</u>" and "<u>$</u>" mean lawful money of the United States of America.

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"<u>DSCR</u>" means an amount calculated as of any Measurement Date by dividing (x) the Net Cash Flow over the immediately preceding three (3) Collection Periods most recently ended to (y) the amount of Interest that the Borrowers will be required to pay over the next three (3) Collection Periods on the Advances on the next Payment Date on the aggregate principal balance of Advances outstanding as of such Measurement Date.

"<u>DSCR Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>EEA Financial Institution</u>" 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 entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Electronic Means</u>" means the following communications methods: e-mail, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by an Agent, or another method or system specified by such Agent as available for use in connection with its services hereunder.

"<u>Eligible Assignee</u>" means (i) a Person who is an Affiliate of a Lender, (ii) a Conduit Assignee, (iii) the specific financial institutions identified by the Lenders prior to the Closing Date that the Loan Parties have indicated are acceptable, or (iv) such other Person as may be acceptable to the Required Lenders (acting reasonably) and, so long as no Event of Default has occurred and is continuing, the Borrowers; <u>provided</u> that, in each case, such Person is not a Competitor, a Disqualified Lender or a Defaulting Lender.

"<u>Eligible Investments</u>" means, at any time, any one or more of the following obligations, instruments, investments and 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 obligations of, and obligations fully guaranteed by, the United States of America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America;

&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 deposits, time deposits, bankers' acceptances or certificates of deposit of any depository institution or trust company (i) incorporated under the laws of the United States of America, any United States of America state or any United States of America branch of a foreign bank, (ii) subject to supervision and examination by federal or state banking or depository institution authorities, (iii) fully insured by the Federal Deposit Insurance Corp. (FDIC) and (iv) at the time of the investment or contractual commitment to invest therein, the commercial paper or other short-term unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) of which have a short-term rating of at least "A-1" from S&P or the equivalent rating of another NRSRO;

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&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)repurchase obligations, having maturities of not more than 365 days, with respect to any security that is a direct obligation of, or fully guaranteed by, the United States of America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America, in either case entered into with a depository institution or trust company (acting as principal) described in clause (b) 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;(d)short-term corporate securities bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States of America or any state thereof; <u>provided</u>, <u>however</u>, that (i) such investment shall not have an 'r' highlighter affixed to its rating and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change and (ii) at the time of the investment, the short-term unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such corporation) of such corporation shall have the highest rating from S&P or the highest rating of another NRSRO;

&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)commercial paper having maturities of not more than 365 days, at the time of the investment, with the highest rating from S&P or the highest rating of another NRSRO; <u>provided</u>, <u>however</u>, that such investment shall not have an 'r' highlighter affixed to its rating and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change;

&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)guaranteed investment contracts issued by an insurance company or other corporation consented to in writing by the Required Lenders (in consultation with the Lead 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;(g)investments in money market funds having a rating from S&P of at least "AAA" or the equivalent rating of another NRSRO; 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;(h)any other investment consented to in writing by the Required Lenders (in consultation with the Lead Borrower); <u>provided</u>, <u>however</u>, that in no event shall any such investment have a long term rating of less than "AA" from S&P or a short-term rating of less than "A-1" from S&P or the equivalent rating of another NRSRO;

<u>provided</u> that each of the foregoing investments shall (i) mature no later than one (1) Business Day prior to the Payment Date immediately following the Collection Period in which such investment was made, (ii) be required to be held until maturity, (iii) exclude any mortgage backed securities and any security of the type commonly known as "strips", (iv) be limited to those instruments that have a predetermined fixed dollar of principal due at maturity that cannot vary or change (<u>provided</u> that money market funds shall be deemed to satisfy this clause (iv)) and (v) not require a payment above par to purchase an obligation if the obligation may be prepaid at the option of the issuer thereof prior to its maturity.

"<u>Equity Interests</u>" means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, and the regulations promulgated and rulings issued thereunder.

"<u>ERISA Event</u>" 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 (30) day notice requirement is waived); (b) the failure with respect to any Plan to satisfy the "minimum funding

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standard" (as defined in Section 412 of the Code or Section 302 of ERISA); (i) 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; (c) 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); (d) the incurrence by any Loan Party or any member of its ERISA Group of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) (i) the receipt by any Loan Party 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, or (ii) the filing by any Loan Party or any member of its ERISA Group of a notice of intent to terminate any Plan; (f) the incurrence by any Loan Party or any member of its ERISA Group of any 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; (g) the receipt by any Loan Party 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 (h) the failure of any Borrower or any member of its ERISA Group to make any required contribution to a Multiemployer Plan.

"<u>ERISA Group</u>" means, with respect to any Borrower, 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 the Code (or Section 414(m) or (o) of the Code for purposes of provisions related to Section 412 of the Code) with such Borrower.

"<u>Erroneous Payment</u>" has the meaning specified in <u>Section 10.07(a)</u>.

"<u>Erroneous Payment Subrogation Rights</u>" has the meaning specified in <u>Section 10.07(d)</u>.

"<u>Errors</u>" has the meaning specified in <u>Section 10.03(h)(vi)</u>.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Event of Default</u>" has the meaning specified in <u>Section 6.01</u>.

"<u>Excess Concentration Amounts</u>" means, as of any Asset Acquisition Date or the date of any Asset Sale:

[\*\*\*].

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder, all as from time to time in effect.

"<u>Excluded Taxes</u>" 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 net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Secured Party being organized under the laws of, or having its principal office in or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of any Lender, any U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in an Obligation pursuant to a law in effect on the date

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on which (i) such Lender acquires such interest in an Obligation (other than pursuant to an assignment under <u>Sections 2.11(b),</u> <u>11.03(i)</u> or <u>12.01(h)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section 11.03</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 11.03(g)</u>, and (d) any Taxes under FATCA.

"<u>Excepted Earn-out Liabilities</u>" means a liability of a Borrower or Subsidiary Guarantor in respect of any assets that would otherwise be subject to clauses (A), (B) or (D) of <u>Section 2.02(a)(v)</u>, except that the Manager on behalf of the applicable Borrower has delivered a written certification to the Lenders (with a copy to the Administrative Agent) that such liability is a conditional liability that is not payable unless the net Collections received in respect of such asset increase by an amount that would enable the applicable Borrower to fully satisfy such liabilities in compliance with the terms of the Facility Documents.

"<u>Facility Documents</u>" means this Agreement, the Lender Fee Letter, the BNY Fee Schedule, each Collateral Document, the Limited Indemnity, the Management Agreement, the Constituent Documents of each Borrower, each Account Control Agreement, each Hedging Agreement, each Assignment and Acceptance, each Joinder Agreement, each Release Request and each other agreement or instrument entered into or delivered in connection with any of the foregoing designated as a Facility Document by the Lead Borrower.

"<u>Facility Pool</u>" means, as of any date of determination, all assets (other than any Borrower Account or property held therein) owned by the Borrowers and included in the Collateral as of such date.

"<u>FATCA</u>" means Code Sections 1471 through 1474, 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) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"<u>Federal Funds Rate</u>" means, for any specified period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the overnight federal funds rates as published in Federal Reserve Board Statistical Release H.15(519) or any successor or substitute publication selected by the Manager (or, if such day is not a Business Day, for the next preceding Business Day), or if, for any reason, such rate is not available on any day, the average of the quotations for the day of such transactions received by the Manager (or, Goldman Sachs & Co. LLC, at its sole discretion, if the Manager does not obtain such quotations) from three federal funds brokers of recognized standing selected by it.

"<u>Final Maturity Date</u>" means the earliest of (a) June 29, 2030, (b) the date of the acceleration of the Advances pursuant to <u>Section 6.02</u>, or (c) the date on which all Obligations shall have been paid in full in cash (other than contingent indemnity obligations not yet due and owing).

"<u>Floor</u>" means a rate of interest equal to 0.00%.

"<u>Fundamental Amendment</u>" means any amendment, modification, waiver or supplement of or to this Agreement that would (a) change the Final Maturity Date, (b) extend the date fixed for the payment of outstanding principal of or accrued and unpaid interest on any Advance or any accrued and unpaid fee hereunder, (c) reduce the amount of any such payment of principal, (d) reduce the rate at which interest is

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payable thereon or any fee is payable hereunder, (e) release any Collateral except in accordance with <u>Section 8.04</u>, modify the definition of "Permitted Lien," (f) alter the terms of <u>Section 8.04</u>, <u>Section 11.01(b)</u>, <u>Section 11.06</u>, <u>Section 12.01(a)</u>, <u>Section 12.01(b)</u> or <u>Section 12.01(g),</u> (g) release any Loan Party from its obligations hereunder except in accordance with <u>Section 8.04</u>, (h) modify the definition of the terms "Aggregate Collateral Value" (or any of the components thereof), "Commitment Amount," "DSCR," "Fundamental Amendment", "Lender Percentage," "LTV Ratio," "Maximum LTV Ratio," "Net Cash Flow," "Required Lenders," or modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, (i) extend the Availability Period, (j) modify the Priority of Payments or otherwise alter the priorities in which the Borrowers are obligated to pay their liabilities (including, without limitation, as the result of the incurrence of additional liabilities on the part of the Borrowers that are not subject to or accounted for in the Priority of Payments), (k) change the currency required for payments of Obligations under this Agreement or (l) subordinate (or amend or modify this Agreement in any manner that has the effect of subordinating) (x) the Liens on all or substantially all (as determined by the applicable Borrower in good faith) of the Collateral to any Lien on the Collateral securing any other Indebtedness for borrowed money or Indebtedness evidenced by notes or similar instruments or (y) any of the Advances in right of payment to any other Indebtedness for borrowed money or Indebtedness evidenced by notes or similar instruments, in each case, to either be senior in right of payment to this Agreement or be secured by a Lien on the Collateral that is senior to the Liens securing the Collateral contemplated by this Agreement (any such other Indebtedness for borrowed money to which such Liens or obligations, as applicable, are subordinated, "<u>Senior Indebtedness</u>"), unless, in each case, (i) such Senior Indebtedness is expressly permitted by this Agreement as in effect on the Closing Date or (ii) each directly and adversely affected Lender has been offered an opportunity to fund or otherwise provide its pro rata share (based on the amount of obligations that are adversely affected thereby held by each Lender and calculated immediately prior to any applicable amendment or incurrence of such Senior Indebtedness) of the Senior Indebtedness on the same terms as offered to all other providers (or their Affiliates) of the Senior Indebtedness (other than bona fide backstop fees, structuring or arrangement or similar fees and reimbursement of counsel fees and other expenses in connection with the negotiation of the terms of such transaction) pursuant to a written offer made to each such directly and adversely affected Lender describing the material terms of the arrangements pursuant to which the Senior Indebtedness is to be provided, which offer shall remain open to each such directly and adversely affected Lender for a period of not less than five Business Days.

"<u>Funded Facility Amount</u>" means, as of any date of determination, the aggregate principal amount of Advances made on or prior to such date, reduced from time to time by payments and distributions in respect of principal of such Advances.

"<u>Future Composition</u>" means any work that has not been written and/or composed as of the applicable Asset Acquisition Date, but which upon being written and/or composed would be a Musical Composition.

"<u>Future Recordings</u>" means any work that has not been recorded and/or released as of the applicable Asset Acquisition Date, but which upon being recorded and/or released would be a Master Recording. 

"<u>FX Aggregator Account</u>" has the meaning specified in <u>Section 8.02(e)</u>.

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States of America.

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"<u>Genre</u>" means, with respect any Music Product, the genre specified in the Appraisal or, if not set forth therein, the Manager's good faith determination of the genre made in accordance with the Management Standard.

"<u>Governmental Authority</u>" means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, quasi-regulatory authority, administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of government, including the SEC, 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 entity of any of the foregoing, whether domestic or foreign.

"<u>Governmental Authorizations</u>" means all franchises, permits, licenses, approvals, consents and other authorizations of all Governmental Authorities.

"<u>Governmental Filings</u>" 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. For the avoidance of doubt, "Governmental Filings" do not include filings of financing statements under the UCC or comparable laws.

"<u>Guarantors</u>" means each SPV Guarantor, the Subsidiary Guarantors and each Borrower.

"<u>Guaranty</u>" means the Guaranty of each of the Guarantors provided pursuant to Article XIII.

"<u>Hedge Counterparty</u>" means (a) a Secured Hedge Counterparty or (b) a Qualified Counterparty; <u>provided</u> that, no counterparty described in the preceding clause (b) shall be a "Hedge Counterparty" unless such counterparty shall have executed a Hedge Counterparty Joinder and delivered such Hedge Counterparty Joinder to the Administrative Agent.

"<u>Hedge Counterparty Joinder</u>" means a joinder agreement, in form and substance reasonably acceptable to the Required Lenders, executed by a Qualified Counterparty, pursuant to which such Qualified Counterparty has agreed (a) to be bound by the terms of the Facility Documents, including the collateral assignment by each applicable Borrower of its rights under the applicable Hedging Agreement in accordance with the terms hereof, and (b) that, upon the occurrence and during the continuation of an Event of Default, it shall (i) follow the instructions or direction from the Required Lenders with respect to the exercise of rights and remedies by such Qualified Counterparty under such Hedging Agreement and (ii) if so requested by the Required Lenders, make all payments due and payable under such Hedging Agreement directly to the related Approved Account Bank for deposit into a Restricted Borrower Account (and each applicable Borrower consents to the foregoing and agrees that payment to the related Approved Account Bank in accordance with clause (ii) shall discharge the Hedge Counterparty's obligation to pay such amount to such Borrower). A copy of each Hedge Counterparty Joinder shall be provided to all parties to this Agreement.

"<u>Hedge Unwind Date</u>" has the meaning specified in <u>Section 9.04</u>.

"<u>Hedged Rate</u>" means, as of any date of determination and for so long as the Loan Parties (or any of them) have entered into and as of such date maintain one or more Hedging Agreements for purposes of hedging the Interest Rate hereunder, the "Fixed Rate" under (and as defined in) such Hedging Agreement(s) (or such other term as used in such Hedging Agreement(s) that refers to the as-hedged

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interest rate then payable by the related Loan Party thereunder); <u>provided</u> that if the Loan Parties have entered into more than one such Hedging Agreement, the "Hedged Rate" shall mean the weighted average of the "Fixed Rates" (or such equivalent term) under each such Hedging Agreements then in full force and effect.

"<u>Hedging Agreement</u>" means, collectively, (a) an ISDA Master Agreement, the related Schedule to the ISDA Master Agreement, and the related Confirmation or (b) a long form confirmation, in each case entered into between one or more Borrowers and a Hedge Counterparty.

"<u>Hedging Trigger Event</u>" means, the date on which the average yield for the United States Treasury Security having a term of five years, measured based on the closing price for each of the trailing thirty (30) Business Days, is equal to or greater than 4.75% per annum.

"<u>Illegality Notice</u>" has the meaning specified in <u>Section 2.14</u>.

"<u>Immaterial Liabilities</u>" means (a) contingent liabilities that are in effect payable solely at the option of a Borrower, including liabilities that would only arise upon a Borrower electing, in its sole discretion, to participate in any future acquisition of assets, subject in each case, to the establishment and deposit of reserves for such liabilities in a Borrower Liability Reserve Account prior to any election by any Borrower that would cause such liabilities to be incurred, (b) contingent or other immaterial liabilities, the non-payment of which would not, as determined by the Manager in accordance with the Management Standard, result in any material loss, impairment or diminution in value of any Borrower's assets or any other material adverse consequences to any Borrower or any Secured Party, which liabilities shall be payable from Distributable Cash in accordance with the Priority of Payments and (c) any other liabilities disclosed in writing to, and consented to by, the Required Lenders in their sole discretion.

"<u>Indebtedness</u>" means, as applied to any Person, without duplication, (i) all indebtedness for borrowed money; (ii) that portion of obligations with respect to capital leases that is properly classified as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money; (iv) any obligation owed for all or any part of the deferred purchase price of property or services, including any earn-out obligations, purchase price adjustments and profit-sharing arrangements arising from purchase and sale agreements (excluding trade payables incurred in the ordinary course of business that are not overdue by more than 90 days), in each case, other than arising under any Asset Agreement; (v) all indebtedness secured by any Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person; (vi) the face amount of any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (vii) the direct or indirect guaranty, endorsement (otherwise than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the obligation of another or any obligation of such Person with an effect substantially the same as any of the foregoing; and (viii) all obligations of such Person in respect of any exchange traded or over the counter derivative transaction, including under any Hedging Agreement, in each case, whether entered into for hedging or speculative purposes or otherwise. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person's ownership interest in or other relationship with such entity, except (other than in the case of general partner liability) to the extent that the terms of such Indebtedness expressly provide that such Person is not liable therefor. The "amount" or "principal amount" of any guaranty or other contingent liability referred to in <u>clause (vii)</u> above shall be an amount equal to the

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stated or determinable amount of the primary obligation in respect of which such guaranty or other contingent obligation is made or, (x) if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith or (y) if the amount of the guaranty or other contingent liability is less than the determinable amount of the primary obligation (e.g., because of limited recourse to the guarantor), the maximum amount of potential liability on account of such guaranty or other contingent obligation.

"<u>Indemnified Liabilities</u>" has the meaning specified in <u>Section 11.04(b)</u>.

"<u>Indemnified Party</u>" has the meaning specified in <u>Section 11.04(b)</u>.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Borrower under any Facility Document and (b) to the extent not otherwise described in (a), Other Taxes. 

"<u>Independent Director</u>" means, with respect to any Loan Party, a natural person who (A) at the time of his or her appointment as an Independent Director is employed by (or is otherwise designated to act as an Independent Director by) Citadel SPV LLC, CT Corporation, Corporation Service Company, Global Securitization Services, LLC, National Registered Agents, Inc., National Corporate Research Ltd., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or Maples Fiduciary Services (Delaware) Inc. or any other nationally-recognized company that provides professional independent directors or managers for special purpose entities in the ordinary course of its business and (B) is not, and has never been, and will not while serving as a director be, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a member, partner, equityholder, manager, director, officer or employee of any equityholder or Affiliate of the related Loan Party (other than as a "special member" or an independent director of an Affiliate of such Loan Party or any special purpose equityholder that is not in the direct chain of ownership of such Loan Party and that is required by a creditor to be a special purpose entity; <u>provided</u> that such Person is employed by a company that in the ordinary course of business provides professional independent directors or managers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a creditor of or a supplier or service provider (including provider of professional services) to such Loan Party, any special purpose equityholder of such Loan Party, or any of their respective equityholders or Affiliates (other than in his capacity as an employee of a nationally-recognized company that in the ordinary course of business provides professional independent directors or registered agent or registered office services to such Loan Party, or any of their respective equityholders or Affiliates); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;an immediate family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider.

A natural person who otherwise satisfies the foregoing definition other than subparagraph (i) by reason of being the independent director of a "special purpose entity" affiliated with any Loan Party shall not be disqualified from serving as an Independent Director under subparagraph (i) for so long as the fees that such individual expects to earn from serving as independent director of all Affiliates of such Loan Party in any single calendar year constitute in the aggregate less than five percent (5%) of such individual's estimated annual income for that year. A natural person who otherwise satisfies the foregoing definition other than subparagraph (ii) by reason of being a creditor solely in his or her capacity as an independent director of a "special purpose entity" that is an Affiliate of any Loan Party shall not be disqualified from serving as an Independent Director under subparagraph (ii).

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"<u>Initial Advance Amount</u>" means, with respect to any asset of any Borrower as of any date, the aggregate principal amount of Advances actually made hereunder to fund the acquisition of such asset (as calculated without regard to any subsequent payments or distributions in respect of principal of such Advances).

"<u>Initial Borrower</u>" has the meaning specified in the introduction to this Agreement.

"<u>Initial SPV Guarantor</u>" has the meaning specified in the introduction to this Agreement.

"<u>Insolvency Event</u>" 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 ninety (90) 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.

"<u>Intellectual Property</u>" means any and all intellectual and similar property, including Music Products, of every kind and nature now owned or hereafter acquired by any Loan Party, whether registered or unregistered, including all inventions, designs, Copyrights, Patents, Trademarks, trade secrets, confidential or proprietary technical and business information, know-how, show-how or other data or information, software and databases, and all registrations for and all additions and improvements to any of the foregoing that are now owned or hereafter acquired (or contemplated to be owned or acquired, as the context may require) by any Loan Party.

"<u>Intellectual Property Schedule</u>" means <u>Schedule 4</u> hereto, which shall list by Borrower a listing of all Registered Intellectual Property.

"<u>Intellectual Property Security Agreement</u>" means a Copyright Security Agreement, a Patent Security Agreement or a Trademark Security Agreement.

"<u>Interest</u>" means, for each day during an Interest Accrual Period and each outstanding Advance on such day, the sum of the products (for each day during such Interest Accrual Period) of:

<br>where: IR x P x 1/D <br> IR = the Interest Rate for such Advance on such day;

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---

| | | |
|:---|:---|:---|
| P | = | &nbsp;&nbsp;&nbsp;the principal amount of such Advance on such day; and |
| D | = | &nbsp;&nbsp;&nbsp;360 |

---

"<u>Interest Accrual Period</u>" means, as to any Borrowing, the period commencing on the date of such Advance or Borrowing and ending on the numerically corresponding day in the calendar month that is three months thereafter (in each case, subject to the availability thereof), as specified in the applicable Notice of Borrowing; provided that (i) if any Interest Accrual Period would end on a day other than a Business Day, such Interest Accrual Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Accrual Period shall end on the next preceding Business Day, (ii) any Interest Accrual Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Accrual Period) shall end on the last Business Day of the last calendar month of such Interest Accrual Period, (iii) no Interest Accrual Period shall extend beyond the Final Maturity Date and (iv) no tenor that has been removed from this definition pursuant to <u>Section 2.18(d)</u> shall be available for specification in such Notice of Borrowing. For purposes hereof, the date of an Advance or Borrowing initially shall be the date on which such Advance or Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Advance or Borrowing.

"<u>Interest Rate</u>" means, for any Interest Accrual Period and for each Advance outstanding by a Lender for each day during such Interest Accrual Period, a rate per annum equal to (i) in the case of a Base Rate Advance, the Base Rate <u>plus</u> the Applicable Margin; and (ii) in the case of a Term SOFR Advance, the Term SOFR for the Interest Accrual Period therefor <u>plus</u> the Applicable Margin; <u>provided</u>, that upon the occurrence and during the continuance of an Event of Default (which has not otherwise been waived by the Required Lenders pursuant to the terms hereof) the Interest Rate shall be the Post-Default Rate <u>plus</u> the Applicable Margin.

"<u>Interest Reserve Required Amount</u>" means, with respect to any Reporting Date, the aggregate amount of Interest expected to be due and payable in respect of the Advances during the next three (3) months, as determined based on the aggregate outstanding principal amount of Advances on such date and the Interest Rate in effect on such date; <u>provided</u> that, for such purposes, "Interest" shall be calculated using the lower of Term SOFR and the Hedged Rate, in each case, as of such date.

"<u>Inventory</u>" means, with respect to any Borrower, any physical embodiments of Music Product manufactured by or on behalf of such Borrower and used or held for use in the ordinary course of business of such Borrower and all related packaging, including without limitation, all copies of published Musical Compositions (whether in the form of sheet music, orchestrations, folios, compilations, song books or any other form of print), all phonorecords (e.g., compact discs, vinyl LPs, DVDs, cassette tapes, etc.) and digital back-ups and other duplications of sound recordings (other than any original masters of any Master Recording), all merchandise and other collateral materials, all promotional materials (including music videos, promotional films, merchandising or any other similar materials), any other materials created, produced or manufactured pursuant to a Music Agreement (other than Master Recordings), and related products and other readily marketable materials, and including raw materials used in the manufacture of any of the foregoing.

"<u>Investment Company Act</u>" means the Investment Company Act of 1940, and the rules and regulations promulgated thereunder, all as from time to time in effect.

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"<u>IP License</u>" means any Patent License, Trademark License, Copyright License or other material written license or sublicense agreement relating to Intellectual Property.

"<u>IRS</u>" means the U.S. Internal Revenue Service.

"<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

"<u>Joinder Agreement</u>" has the meaning specified in <u>Section 2.01(a)</u>.

"<u>Joint Lead Arranger</u>" has the meaning specified in the Recitals hereto.

"<u>Law</u>" 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, rule of public policy, settlement agreement, statute, or writ, of any Governmental Authority, or any particular section, part or provision thereof.

"<u>Lead Borrower</u>" means, initially the Initial Borrower, or at any time following a Permitted Release of the Equity Interests in the Initial Borrower, any other Borrower designated in writing from time to time as the "Lead Borrower" to the Administrative Agent and the Required Lenders. If at any time there is only one Borrower, that Borrower shall be the Lead Borrower without any further action on the part of the Loan Parties.

"<u>Legacy Purchase Agreements</u>" means, with respect to any seller(s) under an Asset Transfer Agreement, each agreement or instrument by which such seller(s) and each of its or their predecessors-in-title, acquired its or their respective interests in any Music Products from any third-party, including, as applicable, asset purchase agreements, work-for-hire agreements, Copyright assignments, recording agreements, distribution agreements, publishing agreements, administration agreements, producer agreements, mixer agreements, sample agreements, licenses, settlement agreements, or equivalent agreements or instruments.

"<u>Lender</u>" means, (a) each Person identified as such on <u>Schedule 1</u> hereto and any other Person that shall have become a party hereto as a lender in accordance with the terms hereof pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance, and (b) "Lenders" means, collectively, all of the foregoing lenders.

"<u>Lender Fee Letter</u>" means that certain lender fee letter agreement, dated as of the Closing Date, among the Initial Borrower and the initial Lenders.

"<u>Lender Percentage</u>" means (i) for all funding matters hereunder, with respect to each Lender at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the unfunded Commitment Amount of such Lender at such time and the denominator of which is the aggregate unfunded Commitment Amounts of all Lenders at such time, and (ii) with respect to all other matters, including the receipt of payments hereunder, with respect to each Lender at any time, the Lender Percentage shall be determined based on each such Lender's pro rata share of the aggregate outstanding principal amount of all Advances as of such date.

"<u>Lien</u>" means any mortgage, pledge, hypothecation, assignment, encumbrance, lien or security interest (statutory or other), or preference, priority or other security agreement, charge or preferential

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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 any Loan Party of any financing statement under the UCC or comparable law of any jurisdiction).

"<u>Limited Indemnity</u>" means that certain Limited Indemnity Agreement, dated as of the date hereof, by and between Beethoven JV 1, LLC, as limited indemnitor, the Collateral Agent and the Lenders.

"<u>Loan Parties</u>" means each Borrower, each SPV Guarantor and each Subsidiary Guarantor.

"<u>LTV Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>LTV Ratio</u>" means, as of any date of determination, the percentage equivalent of a fraction, (x) the numerator of which is the Funded Facility Amount as of such date and (y) the denominator of which is the Aggregate Collateral Value as of such date.

"<u>Managed Borrower Account</u>" means each Borrower Account that is not a Restricted Borrower Account.

"<u>Management Agreement</u>" means the Music Portfolio Management Agreement, dated as of the date hereof, by and among the Manager, the Initial Borrower, the Initial SPV Guarantor and each other Loan Party, party hereto from time to time.

"<u>Management Fee</u>" has the meaning specified in the Management Agreement.

"<u>Management Standard</u>" has the meaning specified in the Management Agreement.

"<u>Manager</u>" means Beethoven JV 1, LLC, a Delaware limited liability company, in its capacity as music portfolio manager under the Management Agreement.

"<u>Manager Termination Event</u>" has the meaning specified in the Management Agreement.

"<u>Managing Agent</u>" has the meaning specified in the Recitals hereto.

"<u>Mandatory Prepayment Amount</u>" has the meaning set forth in <u>Section 2.07(d)</u>.

"<u>Margin Stock</u>" has the meaning specified in Regulation U.

"<u>Master Recordings</u>" means that portion of all right, title or interest of any kind in and to any recording of sound (including any "sound recordings" as such term is defined in 17 U.S.C. § 101), which is owned and/or controlled by or licensed to the Borrower or any Subsidiary, or in which the Borrower or any Subsidiary has any economic interest, whether or not coupled with a visual image (by any method and on any substance or material or in any other form or format, now known or hereafter developed), including all multitrack master tapes (including any eight (8), sixteen (16), twenty-four (24) and forty-eight (48) track master tapes and all two (2) track sequenced, fully-mixed, edited, equalized, leadered and mastered digital audio tapes and/or Umatic 1630 tapes) and all mothers, masters, acetates and metals, stamper or pressings or other equivalent parts or reproductions of such master tapes and recordings, and all other similar materials used or useful in the recording, production or manufacture of Records or for audio transmission or for any other commercial exploitation derived from such sound recordings;

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<u>provided</u>, <u>however</u>, that digital back-ups and other duplications of original physical recordings (including, without limitation, compact discs and other Music Product in any medium that constitutes Inventory) shall not be deemed "Master Recordings" for purposes of this Agreement; <u>provided</u>, <u>further</u>, <u>however</u>, sound recordings that are only embodied in a digital format shall be "Master Recordings" for purposes of this Agreement.

"<u>Material Adverse Effect</u>" means, with respect to any Person, an action or an event that could have a material adverse effect on (a) the business, assets, financial condition, operations, performance or properties of such Person, (b) the validity, enforceability or collectability of this Agreement or any other Facility Document against such Person or the validity, enforceability or collectability of all or any material portion of the Collateral, (c) the rights and remedies of the Agents, the Lenders and the Secured Parties with respect to matters arising under this Agreement or any other Facility Document, (d) the ability of such Person to perform its obligations under any Facility Document to which it is a party, or (e) the validity, perfection, priority or enforceability of the Lien of the Collateral Agent for the benefit of the Secured Parties on the Collateral.

"<u>Maximum Advance Amount</u>" means $500,000,000 (as may be increased in accordance with <u>Section 2.19</u>).

"<u>Maximum LTV Ratio</u>" means, as of any date of determination, the weighted average (by Appraised Collateral Value or Non-Appraised Collateral Value, as applicable) of the Specific Maximum LTV Ratios of all Music Products.

"<u>Measurement Date</u>" means (a) each Borrowing Date, (b) each Reporting Date, (c) each Release Date and (d) each date on which an updated Appraisal is delivered hereunder (including each Annual Catalogue Appraisal and each Appraisal delivered at the request of the Lenders in accordance with <u>Section 5.01(o)</u>).

"<u>Minimum DSCR</u>" means, with respect to any Measurement Date, a DSCR of 1.10x.

"<u>Minimum Equity Payment</u>" means, with respect to any Music Products purchased on any Acquisition Date, the product of [\*\*\*].

"<u>Minimum Release Price</u>" means, in the case of any Permitted Release in connection with the sale, disposition or other transfer of any asset included in the Facility Pool, [\*\*\*].

"<u>Money</u>" has the meaning specified in Section 1-201(b)(24) of the UCC.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Multiemployer Plan</u>" means an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA that is sponsored by a Borrower or a member of its ERISA Group or to which a Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.

"<u>Music Agreements</u>" means, with respect to any Borrower, all license agreements, songwriter agreements, publishing agreements, co-publishing agreements, Administration Agreements, Legacy Purchase Agreements, Asset Transfer Agreements, assignments, or any other agreements pursuant to which the Borrower or any Subsidiary acquires or has acquired rights to publish, administer, license, sublicense, control, receive income from, distribute or otherwise exploit Master Recordings, Musical Compositions, Music Product Rights or other Music Product.

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"<u>Music Company</u>" means a record label, music publisher or any other Person engaged in the business of owning and exploiting assets similar to the Music Products and other related assets and other activities of such Music Company entered into in furtherance of the foregoing.

"<u>Music Product Rights</u>" means, with respect to any Borrower, all of such Borrower's right, title and/or interest of any kind in or to the Music Products.

"<u>Music Products</u>" means, with respect to any Borrower, any (i) Master Recordings, (ii) Musical Compositions, (iii) Future Recordings, (iv) Future Compositions, (v) NIL Rights, (vi) Neighboring Rights, (vii) Writer's Share of Public Performance, (viii) any and all appurtenant rights to the foregoing pursuant to the grant of rights under the applicable Music Agreements or otherwise (including, without limitation, with respect to videos, packaging, and artwork), and (ix) any other right, title or interest acquired by Borrower pursuant to an applicable Music Agreement.

"<u>Music Publishing and Master Distribution Rights</u>" means, with respect to any Borrower and any Musical Composition or Master Recording included in its assets, Copyrights and related rights to exercise any of the exclusive rights under the U.S. Copyright Act that are reserved to the copyright owner, including, without limitation, the rights to reproduce, distribute, record, perform, use, and otherwise exploit such Musical Composition or Master Recording, or to authorize any third party to do any of the foregoing, to the extent of such Borrower's interests therein.

"<u>Musical Compositions</u>" means that portion of all right, title and interest in and to any musical composition (including the underlying Copyrights) (whether published or unpublished, registered or unregistered), which is owned and/or controlled by or licensed to the Borrower or any Subsidiary, or in which the Borrower or any Subsidiary has any economic interest, including, without limitation, all rights to (a) the lyrics (in any language), themes, titles, musical underscores, bumpers, cues and arrangements, adaptations, editions, and translations, in each case, embodied in or derived therefrom, (b) the exploitation thereof in the form of sheet music, orchestrations, folios, compilations, songbooks and other forms of print, (c) the exploitation thereof as embodied in Records, (d) the inclusion of performances thereof in motion pictures, videotapes and other audiovisual works, and (e) the granting to third parties of the right to perform such musical composition (including, without limitation, on screen, stage or other means) publicly, world-wide or within any particular territory.

"<u>Neighboring Rights</u>" means any and all universe-wide so-called "neighboring rights" in any Master Recordings, as well as any income derived solely from the neighboring rights from the public performance or broadcast of a Master Recording in any manner now known or hereafter created in connection with a Person's capacity as a recording artist, performer or producer of the sound recordings, or as the owner of such Master Recording (including, without limitation, digital audio transmissions of sound recordings or any other non-interactive digital performance of sound recordings pursuant to 17 U.S.C. § 112 or § 114) as well as any other public performances of sound recordings that are recognized by WIPO, the Rome Convention or other similar statutes or treaties and their successors or replacements, and laws and regulations currently in effect or hereinafter enacted in any country of the world.

"<u>Net Cash Flow</u>" means, with respect to any Collection Period as of any date, (a) the aggregate amount of Collections received by the Borrowers in respect of such Collection Period as of such date (including without limitation any Collections received in respect of any Hedging Agreement), <u>minus</u> (b) the sum of (i) the aggregate amount of all amounts accrued in respect of any liabilities of the Borrowers in respect of such Collection Period that are payable prior to, or *pari passu* with, Interest on the Advances pursuant to the Priority of Payments (including without limitation any amounts payable under any

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Hedging Agreement pursuant to <u>clause</u> <u>fourth</u> thereof), <u>plus</u> (ii) the amount of any accrued and unpaid Management Fees then due and payable pursuant to the Management Agreement, plus (iii) any reimbursement of expenses due to the Manager pursuant to the Management Agreement, <u>plus</u> (iv) the aggregate amount of expenses and other amounts payable pursuant to <u>clause</u> <u>second</u> of the Priority of Payments.

"<u>Net Publisher/Net Label Share</u>" means, for any applicable period of determination, the license fees, royalties and other revenue due to any Person (including revenues from any Neighboring Rights or Writer's Share of Public Performance owned by such Person) from the exploitation of the Music Products, including revenue earned but not yet reported in accordance with such Person's revenue recognition policies noted on such Person's audited financial statements, less all license fees, payments, royalties and other amounts (other than Advances) due to writers, copyright owners, sub publishers and holders of other underlying rights in such Music Products, determined on a net basis by matching payments in and payments out regardless of any differences in timing of such payments.

"<u>NIL Rights</u>" means solely the right to use, reproduce and commercially exploit the name, image, likeness or voice (excluding in the context of exploitation of Master Recordings) of any Person in their capacity as a recording artist, performer, producer, mixer, songwriter and/or any other contributor to Musical Compositions and/or Master Recordings, to the extent such rights are independent of any other Music Product or related right.

"<u>Non-Appraised Collateral Value</u>" means, as of any date of determination with respect to any Music Products not subject to an Appraisal as of such date, the lower of (i) the acquisition purchase price of such Music Products paid by the applicable Borrower in immediately available funds in Dollars and (ii) the Consolidated Net Publisher/Net Label Share attributable to such Music Products over the twelve month period immediately preceding such date multiplied by 20 (twenty); <u>provided</u> <u>that</u>, the value of any Future Compositions or Future Recordings shall be deemed to be zero.

"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all affected Lenders in accordance with the terms of <u>Section 11.01</u> and (b) has been approved by the Required Lenders.

"<u>Non-Dollar Payments</u>" shall mean any Collections that are received by an Obligor in a currency other than Dollars.

"<u>Non-U.S. Lender</u>" has the meaning specified in <u>Section 11.03(g)(ii)(B)</u>.

"<u>Notice of Borrowing</u>" has the meaning specified in <u>Section 2.04(a)</u>.

"<u>Notice of Prepayment</u>" has the meaning specified in <u>Section 2.07(a)</u>.

"<u>NRSRO</u>" means a "nationally-recognized statistical rating organization" registered with the SEC.

"<u>Obligations</u>" means all Indebtedness, liabilities and obligations, whether absolute, fixed or contingent, at any time or from time to time owing by any Loan Party to any Secured Party under or in connection with this Agreement or any other Facility Document, including, but not limited to, all amounts payable by any Loan Party in respect of the Advances, with interest thereon, all fees payable pursuant to the Lender Fee Letter, the BNY Fee Schedule or any other Facility Document, amounts payable under

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Hedging Agreements with Secured Hedge Counterparties and all other amounts payable hereunder, including, without duplication, all Erroneous Payment Subrogation Rights.

"<u>Obligor</u>" means, with respect to any Collections payable to any Borrower, the Person or Persons (including each applicable guarantor and each applicable licensee) obligated to pay such Collections or authorized or obligated to conduct activities that may give rise to Collections (whether or not such Collections actually arise).

"<u>OFAC</u>" has the meaning specified in <u>Section 4.01(f)</u>.

"<u>Optional Prepayment</u>" has the meaning specified in <u>Section 2.07(a)</u>.

"<u>Optional Prepayment Date</u>" has the meaning specified in <u>Section 2.07(a)</u>.

"<u>Other Connection Taxes</u>" means, with respect to any Secured Party, 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 from such Secured Party having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Obligation, this Agreement or any other Facility Document, or sold or assigned an interest in any Obligation or Facility Document). 

"<u>Other Taxes</u>" has the meaning specified in Section <u>11.03(c)</u>. 

"<u>Outstanding Collections</u>" means, with respect to any date during any Collection Period, the portion of Collections accrued and unpaid as of such date that are scheduled to be received by the last day of such Collection Period, in each case, from Obligors that are otherwise current, as of such date, on all other payments due in respect of Collections and that the Manager, acting in accordance with the Management Standard, reasonably determines that it expects to receive; <u>provided</u>, that, to the extent any such Collections are actually received during such Collection Period, such Collections shall not be treated as Outstanding Collections.

"<u>Participant</u>" has the meaning specified in <u>Section 12.01(d)</u>.

"<u>Participant Register</u>" has the meaning specified in <u>Section 12.01(d)</u>.

"<u>Patent License</u>" means any written agreement now or hereafter in existence granting to any Borrower, or pursuant to which any Borrower grants to any other Person, any right with respect to any patent or any invention now or hereafter in existence material to the operations or business of such Borrower, whether patentable or not, whether a patent or application for patent is in existence on such invention or not, and whether a patent or application for patent on such invention may come into existence or not.

"<u>Patent Security Agreement</u>" means a security agreement in substantially the form attached hereto as <u>Exhibit F-2</u>.

"<u>Patents</u>" means, collectively, all patents (including, during the term of a patent, the inventions claimed thereunder) and industrial designs (including any continuations, extensions, divisionals, continuations in part, provisionals, reissues and re-examinations thereof), together with (i) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing and (ii) all income, fees,

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royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past, present or future infringements thereof.

"<u>PATRIOT Act</u>" has the meaning specified in <u>Section 11.16</u>.

"<u>Payment Date</u>" means, the 15<sup>th</sup> day of each January, April, July and October, commencing in October, 2025; <u>provided</u> that, if any such day is not a Business Day, then such date shall be the next succeeding Business Day.

"<u>Payment Recipient</u>" has the meaning specified in <u>Section 10.07(a)</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation, or any successor agency or entity performing substantially the same functions.

"<u>Periodic Report</u>" has the meaning specified in <u>Section 8.03</u>.

"<u>Periodic Term SOFR Determination Day</u>" has the meaning specified in the definition of "Term SOFR".

"<u>Permitted Assets</u>" has the meaning specified in <u>Section 2.02(a)(iv)</u>.

"<u>Permitted Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>Permitted Holders</u>" means any of the following: (i) the Access Investors, (ii) Warner Music Group Corp. and its Affiliates, (iii) BCSS W Holdings (A), L.P., any other fund or entity managed or advised by Bain Capital Special Situations, L.P. or its Affiliates, and (iv) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the Permitted Holders described in clauses (i) through (iii) is a member; <u>provided</u> that in the case of clause (iv) and without giving effect to the existence of such group or any other group, Permitted Holders, collectively, have beneficial ownership, directly or indirectly, of a majority of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Manager.

"<u>Permitted Liabilities</u>" has the meaning specified in <u>Section 2.02(a)(v)</u>.

"<u>Permitted Liens</u>" means: (a) Liens created in favor of the Collateral Agent (for the benefit of the Secured Parties) 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 Borrowers in accordance with GAAP; (c) Liens constituting bankers' liens, rights of setoff and similar Liens granted to financial institutions maintaining the Borrower Accounts or the Collection Accounts, in each case established in accordance with this Agreement; and (d) Liens relating to Storage Facilities or Collateral held therein that are expressly subordinated to the Liens in favor of the Collateral Agent (for the benefit of the Secured Parties) pursuant to the terms of Storage Facility Access Letters.

"<u>Permitted Release</u>" has the meaning specified in <u>Section 8.04(a)</u>.

"<u>Permitted Securitization</u>" means a Permitted Release of the Equity Interests in a Borrower and/or a Subsidiary Guarantor in connection with the issuance of securities backed by such Borrower's and/or Subsidiary Guarantor's assets and/or Equity Interests.

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"<u>Person</u>" 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.

"<u>Plan</u>" 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 a Borrower or a member of its ERISA Group or to which a Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.

"<u>Post-Default Rate</u>" means a rate per annum equal to the sum of (a) the Applicable Margin plus (b) 2.00% per annum.

"<u>Prepayment Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>Prime Rate</u>" means the "prime rate" published in the "Money Rates" section of The Wall Street Journal, as such "prime rate" may change from time to time. If The Wall Street Journal ceases to publish the "prime rate", then the Manager, in its sole discretion, shall select an equivalent publication that publishes such "prime rate"; and if such "prime rate" is no longer generally published or is limited, regulated or administered by a governmental or quasi-governmental body, then the Manager shall select a comparable interest rate index. In either case, such selection shall be made by the Manager in its sole discretion and the Manager shall notify the Lead Borrower and each Lender in writing of their selection.

"<u>Priority of Payments</u>" has the meaning specified in <u>Section 9.01</u>.

"<u>Private Authorizations</u>" means all franchises, permits, licenses, approvals, consents and other authorizations of all Persons (other than Governmental Authorities).

"<u>Proceeds</u>" has, with reference to any asset or property, the meaning assigned to it under the UCC and, in any event, shall include, but not be limited to, any and all amounts from time to time paid or payable under or in connection with such asset or property.

"<u>Program Support Agreement</u>" means, with respect to any Conduit Lender, any agreement entered into by any Program Support Provider in respect of any Commercial Paper and/or the Advances of such Conduit Lender providing for the issuance of one or more letters of credit for the account of such Conduit Lender, the issuance of one or more insurance policies for which such Conduit Lender is obligated to reimburse the applicable Program Support Provider for any drawings thereunder, the sale by such Conduit Lender to any Program Support Provider of its of its Advances and option to make additional Advances in accordance with the terms hereof (or portions thereof or interests therein) and/or the making of loans and/or other extensions of credit to such Conduit Lender in connection with such Conduit Lender's securitization program, together with any letter of credit, insurance policy or other instrument issued thereunder or guaranty thereof (but excluding any discretionary advance facility provided by a Committed Lender).

"<u>Program Support Provider</u>" means, with respect to any Conduit Lender, any financial institutions and any other or additional Person now or hereafter extending credit or having a commitment to extend credit to or for the account of, and/or agreeing to make purchases from, such Conduit Lender in respect of such Conduit Lender's Commercial Paper and/or Advances, and/or agreeing to issue a letter of credit or insurance policy or other instrument to support any obligations arising under or in connection with such Conduit Lender's securitization program as it relates to any Commercial Paper issued by such Conduit

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Lender, and/or holding equity interests in such Conduit Lender, in each case pursuant to a Program Support Agreement, and any guarantor of any such Person.

"<u>QFC</u>" has 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).

"<u>QFC Credit Support</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>Qualified Counterparty</u>" means a nationally chartered bank, national association, federal association bank, savings and loan association, investment bank, state chartered bank, lending institution, pension fund, insurance company, in each case, that has a long-term unsecured debt rating of "A-" or better by S&P or "A3" or better by Moody's (or the equivalent of either such rating of another NRSRO) or the equivalent rating of another NRSRO.

"<u>Qualified Institution</u>" 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 the equivalent of either such rating of another NRSRO) 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 (or the equivalent of either such rating of another NRSRO), (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 the equivalent of either such rating of another NRSRO) 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 the equivalent of either such rating of another NRSRO) or (C) is otherwise reasonably acceptable to the Required Lenders and (ii) the deposits of which are insured by the Federal Deposit Insurance Corporation.

"<u>Records</u>" shall mean all forms of reproductions, transmissions or communications of Master Recordings, of any kind, nature or description, whether now or hereafter known, manufactured, distributed, transmitted or communicated on or at or through any medium or device primarily for home use, personal use, school use, jukebox use or use in means of transportation or commerce, including, without limitation, records of sound alone and audiovisual records (including music videos and DVD), digital compact cassette tapes, analog cassettes, audio tapes, digital audio tapes, digital or streaming downloads, ringtones, compact discs, videodiscs, minidiscs, vinyl records, SACD, DVD-Audio and CD-ROM, CD-I and CD Plus recordings. For the avoidance of doubt, "Records" shall include the streaming, interactive transmission or interactive communication of a Master Recording directly to the consumer regardless of whether such Master Recording has been previously or is subsequently embodied in a physical record configuration.

"<u>Register</u>" has the meaning specified in <u>Section 12.01(c)</u>.

"<u>Registered Intellectual Property</u>" means (i) any Patent registered with the United States Patent and Trademark Office or any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, (ii) any Trademark registered with the United States Patent and Trademark Office or any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, and (iii) any Copyright registered with the United States Copyright Office or any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof.

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"<u>Regulation T</u>," "<u>Regulation U</u>" and "<u>Regulation X</u>" mean Regulation T, U and X, respectively, of the Board of Governors of the Federal Reserve System, as in effect from time to time.

"<u>Release Proceeds</u>" shall mean, with respect to any Permitted Release in connection with the sale, disposition or other transfer of any Music Product included in the Facility Pool, the excess, if any, of (i) the sum of cash and cash equivalents received in connection with such disposition, over (i.e., reduced by) (ii) the sum of (A) the reasonable and customary out-of-pocket expenses incurred by the Loan Parties (or the Manager on their behalf) in connection with such disposition (including, without limitation, the repayment of trade debt in connection therewith) and (B) income Taxes reasonably estimated to be (x) payable by the taxable parent entity or entities of the Loan Parties (including Taxes imposed under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign law)), or (y) actually payable by the Loan Parties, in each case, within two years of such disposition as a result of any gain recognized by the Loan Parties in connection therewith.

"<u>Release Request</u>" means a release request executed by the Lead Borrower (or the Manager on its behalf) in substantially the form of <u>Exhibit B</u> hereto or any other form reasonably acceptable to the Required Lenders.

"<u>Relevant Governmental Body</u>" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Replacement Event</u>" has the meaning specified in the definition of "Term SOFR".

"<u>Reporting Date</u>" means the date that is three (3) Business Days prior to each Payment Date.

"<u>Requested Amount</u>" has the meaning specified in <u>Section 2.04(a)</u>.

"<u>Required Discount Rate</u>" means, with respect to any Appraisal, a per annum rate equal to the yield to maturity (adjusted to a "bond-equivalent basis" for an equivalent period) of the United States Treasury Security having a term closest to ten (10) years plus (B) 2.50%.

"<u>Required Lenders</u>" means, as of any date of determination, one or more Lenders representing more than 50% of the aggregate Commitment Amounts of all Lenders; <u>provided</u> that, following the end of the Availability Period, "Required Lenders" shall mean, as of any date of determination, Lenders holding Advances representing more than 50% of the aggregate outstanding principal amount of Advances as of such date; <u>provided</u>, <u>further</u>, that in the case of any consent required pursuant to Section 2.02(a)(iii) the consenting Lenders must include Goldman Sachs Bank USA, so long as it has a Commitment Amount or Advance outstanding; <u>provided</u>, <u>further</u>, that for the purpose of determining the Required Lenders needed for any waiver, amendment, modification or consent, the Commitment Amount and Advances of any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

"<u>Resolution Authority</u>" shall mean an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

"<u>Responsible Officer</u>" means (a) in the case of a corporation, partnership or limited liability company that, pursuant to its Constituent Documents, has officers, any chief executive officer, chief financial officer, chief administrative officer, president, senior vice president, 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, (b) in the case of a limited

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partnership, the Responsible Officer of the general partner, acting on behalf of such general partner in its capacity as general partner, (c) in the case of a limited liability company, any Responsible Officer of the sole member or managing member, acting on behalf of the sole member or managing member in its capacity as sole member or managing member, (d) in the case of a trust, a Responsible Officer of the trustee or the administrator of the trust, acting on behalf of such trust in its capacity as trustee, (e) in the case of any Borrower, an authorized signatory appointed pursuant to such Borrower's Constituent Documents, and (f) in the case of the Collateral Agent or the Administrative Agent, any officer within the Corporate Trust Office (or any successor group of the Collateral Agent or the Administrative Agent, as applicable), including any vice president, assistant vice president or officer of 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 corporate trust or agency matter is referred at the Corporate Trust Office 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 transaction.

"<u>Restricted Borrower Account</u>" means the Borrower Payment Account, the Borrower Interest Reserve Account, the Cure Contribution Holding Account, the Borrower Liability Reserve Account and each other Borrower Account designated by the Lead Borrower from time to time as a Restricted Borrower Account.

"<u>Restricted Payments</u>" means the declaration of any distribution or dividends or the payment of any other amount to any beneficiary or other equity investor in any Borrower on account of any Equity Interest in respect of any 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 Equity Interest in any Borrower or of any warrants, options or other rights to acquire the 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 Equity Interest in respect of any Borrower.

"<u>Re-Tested Variance Report</u>" means, with respect to any specific collection of Music Products that has been subject to a reduction of its related Specific Maximum LTV Ratio as a result of a negative Variance set forth in a Variance Report, a subsequent Variance Report (to be delivered no earlier than twelve (12) months following the date of the Variance Report that resulted in such reduction of the related Specific Maximum LTV Ratio) demonstrating that no negative Variance exists between (a) the actual Consolidated Net Publisher/Net Label Share attributable to such Music Products during the periods from the date of the Catalogue Appraisal that was the basis for the negative Variance that resulted in the reduction of the related Specific Maximum LTV Ratio through the date of such subsequent Variance Report and (b) the projected Consolidated Net Publisher/Net Label Share attributable to such Music Products for such period as set forth in such Catalogue Appraisal for such Music Products.

"<u>Revenue-Generating Agreement</u>" means, with respect to any Borrower, any contractual agreement whereby the Music Product Rights are administered, distributed or otherwise exploited for the benefit (directly or indirectly) of the Borrowers, and any other agreement that constitutes a Cashflow Asset.

"<u>Revenue-Generating Agreement Cure</u>" means, with respect to any Revenue-Generating Agreement that has been terminated or any material provision thereof has ceased to create an enforceable obligation against the related Obligor, or any Obligor has so asserted in writing: (i) such Revenue-Generating Agreement has been amended or renewed such that the related material provision has been

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rendered enforceable or such Obligor has rescinded such claim of unenforceability, (ii) such Revenue-Generating Agreement has been replaced with one or more other Revenue-Generating Agreements (including through amendments to existing Revenue-Generating Agreements increasing the amounts payable thereunder) that the Manager reasonably determines, in accordance with the Management Standard, would produce at least a comparable amount of Collections and Distributable Cash available to pay the Obligations, (iii) a new Appraisal of the Facility Pool has been delivered that reflects an Appraisal Value at least equal to the Appraisal Value of the Facility Pool as of immediately prior to such termination, unenforceability or assertion of unenforceability, or (iv) the Required Lenders have consented to such termination (or waived such unenforceability or assertion of unenforceability) in writing.

"<u>S&P</u>" means S&P Global Ratings.

"<u>Sanctioned Country</u>" means, at any time, a country or territory that is the target of comprehensive, country- or territory-wide Sanctions (as of the date of this Agreement, Cuba, Iran, North Korea, Syria, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic and the Crimea region of Ukraine).

"<u>Sanctioned Person</u>" means any Person: (a) listed in any Sanctions-related list of designated Persons maintained by the Government of the United States, the United Nations Security Council, the European Union, any Member State of the European Union or the United Kingdom; (b) resident, operating, or organized under the laws of, a Sanctioned Country; (c) the government of a Sanctioned Country or the Government of Venezuela or (d) who is directly or indirectly 50% or more owned or controlled by any such Person or Person(s).

"<u>Sanctions</u>" means any financial, economic, or trade sanctions laws, regulations, rules, decisions, embargoes and/or restrictive measures imposed, administered or enforced by: the Government of the United States, the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom.

"<u>SEC</u>" means the Securities and Exchange Commission or any other Governmental Authority of the United States of America at the time administrating the Securities Act, the Investment Company Act or the Exchange Act.

"<u>Secured Hedge Counterparty</u>" means (i) any Lender or any of its Affiliates or (ii) any other Person reasonably acceptable to the Required Lenders.

"<u>Secured Parties</u>" means each Agent, each Approved Account Bank, each Lender, each Secured Hedge Counterparty, each Affected Person and each Indemnified Party.

"<u>Secured Party Representatives</u>" has the meaning specified in <u>Section 11.09</u>.

"<u>Securities Act</u>" means the Securities Act of 1933, 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.

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

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"<u>SOFR Administrator</u>" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Borrowing</u>" means, as to any Borrowing, the Term SOFR Advances comprising such Borrowing.

"<u>SOFR Website</u>" means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.

"<u>Solvent</u>" means, with respect to any Person, that as of the date of determination, both (a) (i) the sum of such Person's debt (including contingent liabilities) does not exceed the present fair saleable value of such Person's present assets; (ii) such Person's capital is not unreasonably small in relation to its business as contemplated on the Closing Date or the date it becomes a party hereto, as applicable, and reflected in any of its financial projections; and (iii) such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (b) such Person is "solvent" within the meaning given that term and similar terms under the Bankruptcy Code, Section 271 of the Debtor and Creditor Law of the State of New York or other Applicable Laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standards No. 5).

"<u>Specific Maximum LTV Ratio</u>" means with respect to any specific collection of Music Products, 57.5%; <u>provided</u> that if a Variance Report delivered pursuant to <u>Section 5.01(r)</u> with respect to such Music Products shows a negative Variance 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) greater than or equal to 15%, but less than 20%, the Specific Maximum LTV Ratio for such Music Products shall reduce to 52.5% as of the date of delivery of such Variance Report;

&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) greater than or equal to 20% but less than 25%, the Specific Maximum LTV Ratio for such Music Products shall reduce to 47.5% as of the date of delivery of such Variance Report; 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) greater than or equal to 25% the Specific Maximum LTV Ratio for such Music Products shall reduce to 42.5% as of the date of delivery of such Variance Report;

<u>provided</u>, <u>further</u>, that, if a Specific Maximum LTV Ratio Cure applies to such collection of Music Products as of any applicable date of determination, the Specific Maximum LTV Ratio for such Music Products shall be deemed to be 57.5% for so long as such Maximum LTV Ratio Cure applies.

"<u>Specific Maximum LTV Ratio Cure</u>" means with respect to any specific collection of Music Products that have been subject to reduction of their related Specific Maximum LTV Ratio as a result of a negative Variance set forth in a Variance Report, a Re-Tested Variance Report has been delivered covering such Music Products; <u>provided</u> that, without the written consent of the Required Lenders, (i) no more than one Re-Tested Variance Report may be delivered with respect to such Music Products and (ii) the Specific Maximum LTV Ratio Cure shall only apply to such Music Products for the four (4) Payment Dates immediately following the date of the delivery of such Re-Tested Variance Report.

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"<u>Specified Genre</u>" means [\*\*\*].

"<u>Specified Lender Side Letter</u>" means the letter agreement from WMG BC Holdco LLC, dated on or prior to the first Asset Acquisition Date for the benefit of certain lenders regarding specified regulatory requirements.

"<u>Specified Music Products</u>" means, as of any date of determination, all Music Products with respect to which (i) the related Acquisition Date occurred within the six (6) month period prior to such date of determination and (ii) for which an Appraisal, other than the Appraisal (if any) that was included as part of the Asset Acquisition Package, has not been obtained.

"<u>SPV Guarantor</u>" means the Initial SPV Guarantor and each other special purpose entity directly owning 100% of the equity interests of a Borrower that becomes a party hereto pursuant to <u>Section 2.01</u>.

"<u>Storage Facility</u>" means (a) each secure storage facility arranged by the Manager for the purpose of appropriately securing physical Master Recordings (in line with its customary practice and consistent with the Management Standard), (b) any location owned or leased by any Loan Party or an Affiliate of such Borrower, or (c) any other storage facility approved by the Required Lenders from time to time, each of the foregoing as identified on <u>Schedule 2</u> hereto.

"<u>Storage Facility Access Letter</u>" means a letter, in form and substance reasonably acceptable to the Required Lenders, by and among the landlord, owner, and/or any other Person controlling any Storage Facility, the applicable Borrower, the Manager and the Administrative Agent pursuant to which such landlord, owner or other Person, as applicable, among other things, waives or subordinates any Lien on any Collateral benefiting such Person and agrees to permit the Required Lenders (or their agents) to enter such Storage Facility.

"<u>Subject Laws</u>" has the meaning specified in <u>Section 4.01(f)</u>.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u> that in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding.

"<u>Subsidiary Guarantor</u>" means, each wholly-owned Subsidiary from time to time owned or acquired by a Borrower (directly or indirectly) that accedes to this Agreement as a Subsidiary Guarantor.

"<u>Supported QFC</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, and all liabilities (including penalties, additions and interest) with respect thereto. 

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"<u>Term SOFR</u>" means, for any calculation with respect to a Term SOFR Advance, (a) the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Accrual Period on the day (such day, the "<u>Periodic Term SOFR Determination Day</u>") 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>, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then, at the option of the Lead Borrower, either (i) 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 or (ii) Term SOFR shall be deemed to equal Daily Simple SOFR for each day the applicable Advance remains outstanding, and (b) for any calculation with respect to a Base Rate Advance on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "<u>Base Rate Term SOFR Determination Day</u>") 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>, however, that if as of 5:00 p.m. (New York City time) 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; <u>provided</u>, <u>further</u>, that if Term SOFR determined as provided above (including pursuant to the proviso under <u>clause (a)</u> or <u>clause (b)</u> above) shall ever be less than the Floor, then Term SOFR shall be deemed to be the Floor.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Required Lenders in consultation with the Lead Borrower.

"<u>Term SOFR Advance</u>" means an Advance that bears interest at a rate based on Term SOFR, other than pursuant to <u>clause (c)</u> of the definition of "Base Rate".

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Trademark License</u>" means any written agreement now or hereafter in existence granting to any Borrower, or pursuant to which any Borrower grants to any other Person, any right to use any trademark material to the operations or business of such Borrower.

"<u>Trademark Security Agreement</u>" means a security agreement in substantially the form attached hereto as <u>Exhibit F-3</u>.

"<u>Trademarks</u>" means, collectively, all United States, state and non-U.S. trademarks, service marks, trade names, trade dress, internet domain names, designs, logos, slogans and other indicia of source or origin, whether registered or unregistered, registrations and pending applications to register the foregoing, together with (i) all goodwill of any business connected with the use thereof or symbolized

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thereby, (ii) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing and (iii) all income, fees, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past, present or future infringements thereof.

"<u>Type</u>", when used in reference to any Advance or Borrowing, refers to whether the rate of interest on such Advance, or on the Advances comprising such Borrowing, is determined by reference to Term SOFR or Base Rate.

"<u>UCC</u>" means the Uniform Commercial Code, as from time to time in effect in the State of New York; <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 (for the benefit of the Secured Parties) 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 "UCC" 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.

"<u>UK Financial Institutions</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Undisclosed Administration</u>" means, in relation to a Lender or its direct or indirect parent company that is a solvent person, the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian, or other similar official by a supervisory authority or regulator under or based on the law in the country where such Lender or such parent company is subject to home jurisdiction, if applicable law requires that such appointment not be disclosed.

"<u>Undrawn Fee</u>" has the meaning set forth in the Lender Fee Letter.

"<u>Unmatured Event of Default</u>" means any event or condition which, with the passage of time, the giving of notice, or both, would constitute an Event of Default.

"<u>U.S.</u>" or "<u>United States</u>" means the United States of America.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"<u>U.S. Person</u>" means a "United States person" as defined in section 7701(a)(30) of the Code.

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"<u>U.S. Special Resolution Regimes</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning specified in <u>Section 11.03(g)(ii)(B)(3)</u>.

"<u>Valuation Threshold</u>" means, as of any date of determination with respect to any assets proposed to be acquired, (a) 20.0% multiplied by (b) the Aggregate Collateral Value as of such date (without giving effect to such asset acquisition).

"<u>Variance</u>" means with respect to any specific collection of Music Products the difference between (i) the actual Consolidated Net Publisher/Net Label Share attributable to such asset or assets for the period specified in the related Appraisal or asset valuation model, as applicable and (ii)(A) if an Appraisal is received, the projected Net Publisher/Net Label Share attributable to such asset or assets in the Appraisal relating to a specified period or (B) if no Appraisal is received, the applicable asset valuation model attributable to such asset or assets for a specified period as outlined in the related Asset Acquisition Package, delivered to the Borrower at the time of acquisition.

"<u>Variance Report</u>" means a variance report, prepared by the Manager and, delivered pursuant to <u>Section 5.01(r)</u>, showing the Variance for a specific collection of Music Products; provided that each such report shall be calculated using methodology and assumptions reasonably acceptable to the Required Lenders; provided, further, that, for the avoidance of doubt, any Variance attributable to a Permitted Release or in respect of a Permitted Securitization in the twelve month period preceding the date of such Variance Report shall be disregarded for the purpose of such Variance Report.

"<u>Warner/Bain Holders</u>" means Permitted Holders described in clauses (ii) and (iii) of the definition thereof.

"<u>Withdrawal Liability</u>" 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.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.

"<u>Writer's Share of Public Performance</u>" means one hundred (100%) percent of any income payable to a Person in their capacity as a songwriter and/or composer by any Administrator as the so-called "writer's share" solely in relation to the Musical Compositions with respect to the public performance thereof or related rights therein anywhere in the universe.

**Section 1.02<u>Rules of Construction</u>**. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires (a) singular words shall connote the plural as well as the singular, and vice versa (except as indicated), as may be appropriate, and "or" is not exclusive, (b) the words "herein," "hereof" and "hereunder" and other words of similar import used in this

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Agreement refer to this Agreement as a whole and not to any particular article, schedule, section, paragraph, clause, exhibit or other subdivision, (c) the headings, subheadings and table of contents set forth in this Agreement are solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect the meaning, construction or effect of any provision hereof, (d) references in this Agreement to "include" or "including" shall mean include or including, as applicable, without limiting the generality of any description preceding such term, and for purposes hereof 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, (e) 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, (f) any definition of or reference to any Facility Document, agreement, instrument or other document herein shall be construed as referring to such 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), (g) any reference herein 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), (h) any reference to any law or regulation herein shall refer to such law or regulation as amended, modified or supplemented from time to time and (i) each reference to time without further specification shall mean New York City Time.

**Section 1.03<u>Computation of Time Periods</u>**. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" both mean "to but excluding." Periods of days referred to in this Agreement shall be counted in calendar days unless Business Days are expressly prescribed.

**Section 1.04<u>Certain Additional Rules of Construction Regarding the Borrowers, the Collateral and the Agents</u>**. For all purposes of this Agreement, except as otherwise expressly provided herein:

&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)Any consent, direction or other action required or contemplated to be given or taken, as the case may be, by any Loan Party under or in connection with any of the Facility Documents, may be given or taken on its behalf by the Lead Borrower, or for so long as no Manager Termination Event has occurred and is continuing, the Manager. Any notice or other document or information required to be delivered to any Borrower shall be deemed delivered if delivered to the Lead Borrower, or for so long as no Manager Termination Event has occurred and is continuing, the 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;(b)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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding any other provision of this Agreement to the contrary, all monetary calculations under this Agreement shall be 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;(d)Each reference to the Collateral Agent herein, except as otherwise expressly provided or unless the context otherwise requires, shall be deemed to be a reference to the Collateral Agent for the benefit of the Secured Parties.

**Section 1.05<u>Divisions</u>**. 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<u>Rates</u>**. The Agents do not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of

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or any other matter related to Base Rate, the Term SOFR Reference Rate or Term SOFR or Daily Simple 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, Term SOFR or Daily Simple SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Agents and their respective affiliates or other related entities may engage in transactions that affect the calculation of Base Rate, the Term SOFR Reference Rate, Term SOFR or Daily Simple 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 Borrowers. The Required Lenders (in consultation with the Lead Borrower) may select information sources or services in their reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate, Term SOFR or Daily Simple SOFR or any other Benchmark, or any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to 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>BORROWERS; ADVANCES AND ACQUISITIONS**

**Section 2.01<u>Loan Parties</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)In addition to the initial Loan Parties identified on the signature pages hereto, additional Persons may be added as "Borrowers" and/or "Guarantors" each of which shall be an entity that is free and clear of all liens and material liabilities and otherwise complying with the provisions of <u>Section 5.03</u>, and the execution by such Person of a joinder to this Agreement and the other Facility Documents in substantially the form attached hereto as <u>Exhibit A</u> (each, a "<u>Joinder Agreement</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)Each Loan Party shall be jointly and severally liable for all Obligations incurred by any Loan Party hereunder or under any other Facility Documents (whether existing at the time it became a Loan Party hereunder or subsequently incurred), and shall be responsible for compliance with all other terms of this Agreement and the other Facility Documents applicable to a Borrower, from and after the date it becomes a Loan Party hereunder until such time it is released therefrom pursuant to <u>Section 8.04</u> hereof.

**Section 2.02<u>Asset Acquisition Procedures</u>**. (a) A Borrower may from time to time acquire Permitted Assets, subject to and in accordance with the terms, conditions and procedures set forth in this <u>Section 2.02</u> (the "<u>Asset Acquisition Procedures</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 Lead Borrower shall deliver to the Lenders a certificate of a Responsible Officer of the Lead Borrower, certifying that after giving *pro forma* effect to the acquisition of such Permitted Assets the Acquisition/Disposition LTV Ratio as of the related Asset Acquisition Date will be less than or equal to the Maximum LTV Ratio then in effect and attaching detailed calculations of the Acquisition/Disposition LTV Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Lead Borrower shall deliver, to the extent available, the related Asset Acquisition Package deliverables to the Lenders five (5) Business Days, and, to the extent not provided by such date, the Lead Borrower shall deliver all remaining related Asset Acquisition Package deliverables at least two (2) Business Days prior to the acquisition of such Permitted 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Required Lenders shall have provided their written consent to such acquisition in the event that the proposed Permitted Assets have an aggregate purchase price in

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excess of either (x) $100,000,000 or (y) an amount equal to 30.0% of the Aggregate Collateral Value as of such Asset Acquisition 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)No assets may be acquired by any Loan Party other than assets of the type described in the definitions of Music Products, Music Product Rights, and Music Publishing and Master Distribution Rights and related assets (collectively, "<u>Permitted Assets</u>"); <u>provided</u>, that the Manager has reasonably demonstrated to the Required Lenders that any acquired Artist Catalogue must have a weighted average vintage of [\*\*\*], with the weighting based on revenue per song; <u>provided</u>, <u>further</u> that ordinary course additions or updates, replacements, renewals and similar amendments and modifications with respect to existing Artist Catalogues that do not cause any Borrower to incur any liabilities other than Permitted Liabilities or that do not involve any additional cash (or equivalent) consideration payable by any Loan Party shall not be considered as asset acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 acquisition of such Permitted Assets may not cause any Borrower to incur any liabilities other than the following (collectively, "<u>Permitted Liabilities</u>"): (A) liabilities that will be paid in full in cash upon the consummation of such acquisition, (B) liabilities that are payable solely from Collections received in respect of the Permitted Assets being acquired and appropriately reflected in the related Appraisal, (C) Excepted Earn-out Liabilities subject to the requirements of <u>Section 9.03</u> and (D) Immaterial Liabilities and (E) pre-funded liabilities that are fully reserved for (each such fully-reserved prefunded liability, a "<u>Deferred Purchase Price Liability</u>") in one or more Borrower Accounts (each such Borrower Account, a "<u>Borrower Liability Reserve Account</u>") established in the name of such Borrower for the purpose of reserving for and paying such liabilities on or before the consummation of such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such Permitted Assets, upon acquisition, shall constitute Collateral subject to this Agreement, and the Intellectual Property Schedule shall be updated to reflect any additional Intellectual Property assets so acquired. The Manager and each of the Borrowers shall take such additional actions, including without limitation the delivery of any physical Collateral and the Storage Facility Access Letter to a Storage Facility, subject to arrangements reasonably satisfactory to the Required Lenders, the filing of any additional financing statements and the registering or recording of any Intellectual Property Security Agreements, as may be necessary or advisable or as otherwise reasonably requested by any Agent to ensure a first priority perfected security interest in favor of the Collateral Agent (for the benefit of the Secured Parties) in the Permitted Assets being acquired, and to the extent requested by the Required Lenders, deliver to the Lenders a legal opinion of external counsel covering UCC matters, in form and substance reasonably satisfactory to the Required 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)To the extent any such Permitted Assets are acquired by a Borrower from or through one or more Affiliates, any Manager or any Affiliate of a Manager, if requested by the Required Lenders, the Manager and the Borrowers shall cause to be delivered to the Lenders a legal opinion of external counsel covering true sale or contribution and substantive non-consolidation matters, in form and substance reasonably satisfactory to the Required 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;(a)Following consummation of the acquisition of any Permitted Assets pursuant to the foregoing <u>clause (a)</u>, the Borrowers shall (i) unless waived by the Required Lenders, promptly deliver to the related Lenders a true and correct copies of the related Asset Transfer Agreement for such acquisition, which shall be subject to reasonable and appropriate redactions to preserve personally identifiable information with respect to the seller and the acquisition price for the Permitted Asset(s) thereunder and (ii) promptly deliver such other information and documents specifically related to such acquisition as the Required Lenders or any Lender may reasonably request, to the extent the same are in the possession of the Borrowers.

**Section 2.03 <u>Committed Advance Facility</u>**. (a) Subject to the express conditions set forth in <u>Section 3.02</u> and <u>Section 3.03</u>, each Conduit Lender, if any, may, in its sole discretion, and if such Conduit Lender determines that it will not make (or it does not in fact make) an Advance or any portion of an Advance, its related Committed Lender(s) severally agrees to, or, if there is no Conduit Lender with respect to any Committed Lender, such Committed Lender severally agrees to make loans to the

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Borrowers (each, a "<u>Advance</u>"), from time to time during the Availability Period, in an aggregate amount not greater than the lesser of (x) such Lender's Commitment Amount, (y) such Lender's Lender Percentage of the Maximum Advance Amount (or the portion thereof not being made by its related Conduit Lenders), and (z) such Lender's Lender Percentage of the related Initial Advance Amount. Each Lender's Commitment Amount shall terminate and be reduced to zero automatically upon the end of the Availability 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;(a)[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;(b)Each SOFR Borrowing shall be in an aggregate amount of $100,000 or a larger multiple of $100,000; <u>provided</u> that a SOFR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Maximum Advance Amount. Each Base Rate Borrowing shall be in an aggregate amount equal to $100,000 or a larger multiple of $100,000; <u>provided</u> that a Base Rate Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Maximum Advance Amount. Borrowings of more than one Type may be outstanding at the same time.

&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)Notwithstanding anything herein or in any other Facility Document to the contrary, at no time will a Conduit Lender be obligated to make Advances hereunder. While it is the intent of each Conduit Lender to fund each requested Advance through the issuance of Commercial Paper, the parties acknowledge that if any such Conduit Lender is unable, or determines that it is undesirable, to issue Commercial Paper to fund all or any portion of the Advances, or is unable to repay such Commercial Paper upon the maturity thereof, such Conduit Lender may assign all or any portion of its Advances to its Program Support Providers at any time pursuant to the Program Support Agreement or to its Committed Lenders pursuant to Section 12.01.

**Section 2.04<u>Making of the Advances</u>**. (a) Subject to the terms and conditions of <u>Section 2.03</u>, if the Borrowers desire to request a Borrowing under this Agreement, the Borrowers shall give the Administrative Agent a written notice, appropriately completed and signed by a Responsible Officer of the Lead Borrower, or may be given by telephone to the Administrative Agent (if promptly confirmed by such a written notice consistent with such telephonic notice) (each, a "<u>Notice of Borrowing</u>") for such Borrowing (which notice shall be irrevocable and effective upon receipt) not later than 11:00 a.m. (New York City time) (A) in the case of a SOFR Borrowing, two (2) U.S. Government Securities Business Days prior to the date of the requested Borrowing (or such shorter notice as the Lenders, collectively, may agree in writing) or (B) in the case of a Base Rate Borrowing, two (2) Business Days prior to the date of the requested Borrowing (or such shorter notice as the Lenders, collectively, may agree in writing), setting forth (i) the related Requested Amount, (ii) a calculation of each of the LTV Ratio and the Acquisition/Disposition LTV Ratio, as determined both immediately before and after giving *pro forma* effect to the contemplated acquisition and the requested Borrowing, and (iii) the DSCR (after giving *pro forma* effect to the proposed Borrowing), which calculation shall demonstrate compliance with <u>Section 3.03(b)</u>. A Notice of Borrowing received after 1:00 p.m. shall be deemed received on the following Business Day unless otherwise waived by the Lenders (with such waiver being conclusively evidenced by the funding of the requested Borrowing on the proposed borrowing date). The proceeds of all Advances shall be deposited in the Acquisition Account.

Promptly on the same day following receipt of a Notice of Borrowing in accordance with this <u>Section 2.04</u>, the Administrative Agent shall forward a copy of the same to each Lender (or its related Managing Agent) and advise each applicable Lender (or a Managing Agent on behalf of its Lenders) of the details thereof and of the amounts of such Lender's Advance required to be made as part of the requested Borrowing. Each Notice of Borrowing shall be substantially in the form of <u>Exhibit C</u> hereto, dated the date the request for the related Borrowing is being made, and shall be appropriately completed and signed by a Responsible Officer of each Borrower (or the Manager on its behalf). The proposed Borrowing Date specified in each Notice of Borrowing shall occur during the Availability Period, and the amount of the Borrowing requested in such Notice of Borrowing (the "<u>Requested Amount</u>") shall be equal to at least $100,000 (or less, if agreed to by the Lenders in their sole and absolute discretion but not greater than the related Initial Advance Amount). Each Managing Agent shall promptly advise its related Conduit Lender, if any, of any notice given pursuant to this <u>Section 2.04(a)</u> and shall promptly thereafter

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(but in no event later than 10:00 a.m. (New York City time) on the date of such Advance) notify the Administrative Agent, the Borrowers and the related Committed Lender(s) whether such Conduit Lender has determined to make all or any portion of the Advances requested by such Notice of Borrowing that are to be made by its related Committed 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;(a)<u>Funding by Lenders</u>. Subject to the terms and conditions herein, each Lender shall make its Lender Percentage (as such Lender Percentage may be reduced or increased from time to time in accordance with the terms hereof) of the applicable Requested Amount on each Borrowing Date (x) by wire transfer of immediately available funds by 11:00 a.m. on such Borrowing Date to the Administrative Agent pursuant to wiring instructions provided by the Administrative Agent, and the Administrative Agent will hold and pay such funds to the Borrowers, on behalf of the Lenders, by wire transfer of immediately available funds by 2:00 p.m. on such Borrowing Date to the Acquisition Account, or (y) if requested in writing (email is acceptable) by the Administrative Agent, by wire transfer of immediately available funds by 2:00 p.m. on such Borrowing Date directly to the Acquisition Account pursuant to wiring instructions provided by the Administrative Agent (at the written direction of the Lead Borrower).

**Section 2.05<u>Evidence of Indebtedness</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)<u>Maintenance of Records by Lenders</u>. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrowers to it and resulting from the Advances made by such Lender to the Borrowers, from time to time, including the amounts of principal and interest thereon and paid to it, from time to time hereunder; <u>provided</u>, <u>however</u>, that in case of a conflict between the Register and the records of such Lender, the Register shall prevail absent manifest error.

&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>Maintenance of Records by Administrative Agent</u>. The Administrative Agent shall maintain records (including the Register, as described in <u>Section 12.01(c)</u>) in which it shall record (i) the amount of each Advance made hereunder, (ii) the amount of any principal and interest thereon due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by each Approved Account Bank hereunder for the account of the Lenders and each Lender's share thereof. Notwithstanding anything to the contrary herein, the Required Lenders (in consultation with the Lead Borrower) shall be responsible for calculating and confirming any and all amounts due, interest, compliance with financial covenants and each other trigger or rate hereunder and under the other Facility Documents and each such calculation and confirmation shall be conclusive and binding for all purposes, absent manifest error or contrary instruction by 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;(c)<u>Effect of Entries</u>. The entries made in the records maintained pursuant to paragraph (a) or (b) of this Section shall be prima facie evidence, absent obvious error, of the existence and amounts of the obligations recorded therein; <u>provided</u> that the failure of any Lender or the Administrative Agent to maintain such records or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Advances and other Obligations hereunder in accordance with the terms of this Agreement.

**Section 2.06<u>Payment of Principal, Interest and Certain Fees</u>**. The Borrowers shall pay principal and Interest on the Advances 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;(a)100% of the outstanding principal amount of each Advance, together with all accrued and unpaid Interest thereon, shall be due and payable on the Final Maturity 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)Interest shall accrue on the unpaid principal amount of each Advance at the applicable Interest Rate from the related Borrowing Date until such principal amount is paid in full in cash.

&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)Accrued Interest on each Advance shall be due and payable in arrears (x) on each Payment Date, and (y) in connection with any prepayment in cash of the Advances pursuant to <u>Section 2.07(a)</u>; <u>provided</u> that (i) with respect to any prepayment in full in cash of the Advances outstanding,

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accrued Interest on such amount to but excluding the date of prepayment may be payable on such date or as otherwise agreed to between the Lenders and the Borrowers and (ii) with respect to any partial prepayment of the Advances outstanding occurring on any Optional Prepayment Date, accrued Interest on such amount to but excluding such Optional Prepayment Date may be reserved in a Restricted Borrower Account and shall be payable on the immediately following Payment Date 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;(d)Subject to clause (e) below, the obligation of the Borrowers to pay the Obligations, including, but not limited to, the obligation of the Borrowers 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 2.15</u>, <u>Section 2.16</u> and <u>Article IX</u>) and thereof, under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which any Borrower or any other Person may have or have had against any Secured Party or any other Person (other than a defense that payment was made); <u>provided</u> that except as described in clauses (a) and (c) above, all amounts due to be paid by the Borrowers hereunder and under the Facility Documents shall be payable solely to the extent of Distributable Cash (including applicable amounts reserved in and withdrawn from applicable Borrower Accounts) 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;(e)[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;(f)Each Borrower shall pay principal and Interest on the Advances and all other Obligations in accordance with the Priority of Payments as set forth in <u>Article IX</u>.

**Section 2.07<u>Prepayment of Advances and Commitment Reductions</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)<u>Optional Prepayments</u>**.** The Borrowers may, from time to time on any Business Day, voluntarily prepay any outstanding Advances in whole or in part, together with all amounts due pursuant to <u>Sections 2.06(c)</u> and <u>2.12</u> (each, an "<u>Optional Prepayment</u>"); <u>provided</u> that (i) the Lead Borrower shall have delivered to the Administrative Agent written notice of such Optional Prepayment, appropriately completed and signed by a Responsible Officer (or the Manager on its behalf) of the Lead Borrower, or may be given by telephone to the Administrative Agent (if promptly confirmed by such a written notice consistent with such telephonic notice) (such notice, a "<u>Notice of Prepayment</u>") in the form of <u>Exhibit D</u> hereto by not later than 11:00 a.m. (New York City time) (A) in the case of a SOFR Borrowing, two (2) U.S. Government Securities Business Days before the date of prepayment or (B) in the case of prepayment of a Base Rate Borrowing, one (1) Business Day before the date of prepayment, and (ii) in the case of any Optional Prepayment occurring on a date other than a Payment Date (each, an "<u>Optional Prepayment Date</u>"), the Borrowers shall concurrently pay, or reserve for in a Restricted Borrower Account, all other Obligations accrued as of the Optional Prepayment Date that would be payable prior to or *pari passu* with such Optional Prepayment pursuant to the Priority of Payments on the following Payment Date. Each Notice of Prepayment shall specify (x) the date of such Optional Prepayment and (y) the principal amount of each Borrowing or portion thereof to be prepaid. Any Notice of Prepayment received by the Administrative Agent after 1:00 p.m. shall be deemed received on the next Business Day. Upon receipt of such Notice of Prepayment, the Administrative Agent shall promptly forward each Lender a copy thereof. Each such Notice of Prepayment shall be irrevocable (but may be conditioned upon the occurrence of certain refinancing events set forth in such Notice of Prepayment) and effective upon the date received and shall be dated the date such notice is given, signed by a Responsible Officer of each Borrower and otherwise appropriately completed. Each prepayment of any Advance by the Borrowers pursuant to this <u>Section 2.07(a)</u> shall in each case be in a principal amount of at least $100,000 or, if less, the entire outstanding principal amount of the Advances of the Borrowers. If a Notice of Prepayment is given by the Borrowers, the Borrowers shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein (including, but not limited to, any accrued Interest and applicable fees). The Borrowers shall ensure that amounts sufficient to pay the full payment amount is available in the Borrower Payment Account in immediately available funds by no later than 11:00 a.m. on the date of such Optional Prepayment. For the avoidance of any doubt, the Borrowers may only provide a Notice of Prepayment to prepay Advances that are outstanding on the date such Notice of Prepayment is delivered and may not provide a Notice of Prepayment to prepay any future Advances.

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&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>Additional Prepayment Provisions</u>. Each prepayment of principal pursuant to this <u>Section 2.07</u> shall be subject to <u>Sections 2.06(c)</u> and <u>2.12</u> and the Priority of Payments, and shall be applied to the Advances as directed by the Borrowers.

&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)<u>Interest on Prepaid Advances</u>. Except to the extent reserved in a Restricted Borrower Account for payment on the following Payment Date in connection with an Optional Prepayment Date, in accordance with and pursuant to <u>Section 2.06(c)</u>, the Borrowers shall pay all accrued and unpaid Interest on the Advances that are prepaid on the date of such prepayment.

&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)<u>Mandatory Prepayments</u>. In the event of any Permitted Release pursuant to <u>Section 8.04(a)(iv)</u>, the Borrowers shall be obligated to prepay, in accordance with the Priority of Payments, the Advances in an amount (such amount, the "<u>Mandatory Prepayment Amount</u>") equal to the lesser of (i) greater of (x) related Release Proceeds and (y) the Minimum Release Price and (ii) the amount necessary after giving pro forma effect to such Permitted Release, to cause the LTV Ratio to be less than or equal to the Maximum LTV Ratio, notwithstanding that such mandatory prepayment shall still constitute an "Optional Prepayment" 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;(e)<u>Commitment Reduction</u>. The Borrowers may from time to time on any Business Day voluntarily reduce the Maximum Advance Amount and, on a *pro rata* basis, the Commitment Amount of each Lender by written notice delivered to the Administrative Agent (who shall promptly forward a copy of the same to each Lender) at least two (2) Business Days prior to the effective date of such reduction. No such reduction shall reduce the Commitment Amount of any Lender below the then aggregate outstanding principal amount of all Advances of such Lender unless such reduction is accompanied by an Optional Prepayment in the amount by which such Advances would exceed any such reduced Commitment Amount.

**Section 2.08<u>Delayed Funding</u>**. After any Borrower delivers a Notice of Borrowing pursuant to <u>Section 2.03</u> hereof, a Designated Delay Lender (or the related Managing Agent on its behalf), may, not later than 4:00 p.m. New York City time on the date that is one (1) Business Day prior to the proposed Borrowing date, deliver a written notice (a "<u>Delayed Funding Notice</u>", and the date of such delivery, the "<u>Delayed Funding Notice Date</u>") to such Borrower of its intention to fund the related Borrowing (such amount, the "<u>Delayed Amount</u>") on a date (the date of such funding, the "<u>Delayed Funding Date</u>") that is on or before the thirty-fifth (35th) day following the date of such request for a Borrowing (or if such day is not a Business Day, then on the next succeeding Business Day) rather than on the requested Borrowing date; <u>provided</u> that in no event shall the aggregate unfunded Delayed Amount at any time exceed one hundred percent (100%) of the Lender Percentage of the Maximum Advance Amount to be funded by such Designated Delay Lender. By delivery of a Delayed Funding Notice, each Designated Delay Lender shall be deemed to represent and warrant and the effectiveness of such Delayed Funding Notice shall be subject to the conditions that (x) charges relating to the "liquidity coverage ratio" under Basel III have been incurred on the related Committed Lender's interests or obligations hereunder and (y) it is seeking or has obtained a delayed funding option in transactions similar to the transactions contemplated hereby as of the date of such Delayed Funding Notice. Any Designated Delay Lender (or its related Managing Agent, as applicable) that delivers a Delayed Funding Notice with respect to any Borrowing date shall be referred to herein as a "<u>Delaying Lender</u>" with respect to such Borrowing date. If the applicable conditions to any Borrowing described in <u>Section 3.02</u> and <u>Section 3.03</u> are satisfied on the requested Borrowing date, there shall be no conditions whatsoever to the obligation of the Committed Lenders to fund the requested amount on the related Delayed Funding Date. On each Delayed Funding Date, the Delaying Lender shall fund an aggregate amount equal to the Delayed Amount for such Delayed Funding Date. If the Borrowers are unable to borrow the full amount of the requested Borrowing from the Lenders that are not Delaying Lenders, then no later than one (1) Business Day before the requested Borrowing Date and with respect to any Advance, the Borrowers may either (i) revoke the related Notice of Borrowing, or (ii) reduce the amount of the Advance requested in the related Notice of Borrowing.

**Section 2.09<u>Maximum Lawful Rate</u>**. 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 Borrowers 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

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payment of amounts then due and owing by the Borrowers 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 made to the Borrowers.

**Section 2.10<u>Several Obligations</u>**. 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, no Agent 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 to be made by such other Lender.

**Section 2.11<u>Increased Costs</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)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;&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 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 Affected 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;&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 clauses (b) through (d) 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;&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 any Advance 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, converting to, continuing or maintaining any Advance or of maintaining its obligation to make any such Advance, or to reduce the amount of any sum received or receivable by such Affected Person (whether of principal, interest or any other amount) then, upon request of such Affected Person, the Borrowers will pay to such Affected Person such additional amount or amounts as will compensate such Affected Person for such additional costs incurred or reduction suffered.

&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>Capital Requirements</u>. If any Affected Person determines that any Change in Law affecting such Affected Person regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Affected Person's capital as a consequence of this Agreement, the Commitments of such Lender or the Advances made by such Lender, to a level below that which such Affected Person could have achieved but for such Change in Law (taking into consideration such Affected Person's policies with respect to capital adequacy), then from time to time the Borrowers will pay to such Affected Person such additional amount or amounts as will compensate such Affected Person for any such reduction suffered.

&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)<u>Certificates for Reimbursement</u>. A certificate of an Affected Person setting forth the amount or amounts necessary to compensate such Affected Person as specified in paragraph (a) or (b) of this Section and delivered to the Borrowers, shall be conclusive absent manifest error. The Borrowers shall pay such Affected Person the amount shown as due on any such certificate on the next Payment Date in accordance with the Priority of Payments as long as such certificate is received at least five (5) Business Days prior to such Payment Date or if not, on the immediately succeeding Payment 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;(d)<u>Mitigation</u>. Upon the occurrence of any event giving rise to the Borrowers' obligation to pay additional amounts to a Lender pursuant to clause this <u>Section 2.11</u> and <u>Section 11.03</u>, such Lender will (i) 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

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Borrowers 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 or (ii) take such other measures as such Lender may deem reasonable, in each case, if as a result thereof the circumstances which would cause such Lender to be an Affected Person would cease to exist or the additional amounts which would otherwise be required to be paid to such Lender pursuant to this <u>Section 2.11</u> and <u>Section 11.03</u> would be materially reduced and if, as determined by such Lender in its sole discretion, the making, issuing, funding or maintaining of such Advances through such other office or in accordance with such other measures, as the case may be, would not otherwise adversely affect such Advances or the interests of such Lender. The Borrowers hereby agree to pay all reasonable and documented costs and expenses incurred by any Lender in connection with any such designation or other measures.

&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)<u>Delay in Requests</u>. Failure or delay on the part of any Affected Person to demand compensation pursuant to this <u>Section 2.11</u> shall not constitute a waiver of such Affected Person's right to demand such compensation; <u>provided</u> that the Borrowers shall not be required to compensate an Affected Person pursuant to this <u>Section 2.11</u> for any increased costs incurred or reductions suffered more than nine months prior to the date that such Affected Person notifies the Borrowers of the Change in Law giving rise to such increased costs or reductions, and of such Affected Person's intention to claim compensation therefor (except that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

**Section 2.12<u>Compensation; Breakage Payments</u>**. In the event of (a) the payment of any principal of any Term SOFR Advance other than on the last day of the Interest Accrual Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Term SOFR Advance other than on the last day of the Interest Accrual Period applicable thereto (including as a result of an Event of Default), (c) the failure to borrow, convert, continue or prepay any Term SOFR Advance on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Term SOFR Advance other than on the last day of the Interest Accrual Period applicable thereto as a result of a request by the Borrowers pursuant to Section 12.01(h), then, in any such event, the Borrowers shall compensate each Lender for any loss, cost and expense attributable to such event, including any loss, cost or expense arising from the liquidation or redeployment of funds or from any fees payable (including, in the case of any Conduit Lender, the applicable Program Support Provider(s) through its Program Support Agreement or funds obtained by issuing promissory notes or obtaining deposits or loans from third parties, but only to the extent that the related Committed Lender would be entitled to any payment hereunder). A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrowers and shall be conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

**Section 2.13<u>Inability to Determine Rates</u>**. Subject to <u>Section 2.18,</u> if, on or prior to the first day of any Interest Accrual Period for any Term SOFR Advance:

&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 Required Lenders determine (which determination shall be conclusive and binding absent manifest error) that "Term SOFR" cannot be determined pursuant to the definition thereof (including, for the avoidance of doubt, any determination of Daily Simple SOFR in accordance with the provisions of such definition), 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)the Required Lenders determine that for any reason in connection with any request for a Term SOFR Advance or a conversion thereto or a continuation thereof that Term SOFR for any requested Interest Accrual Period with respect to a proposed Term SOFR Advance does not adequately and fairly reflect the cost to such Lenders of making and maintaining such Advance, and the Required Lenders have provided notice of such determination to the Administrative Agent,

(c)then, in each case, the Administrative Agent will promptly so notify the Borrowers and each Lender.

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(d)Upon notice thereof by the Administrative Agent to the Borrowers, any obligation of the Lenders to make Term SOFR Advances, and any right of the Borrowers to continue Term SOFR Advances or to convert Base Rate Advances to Term SOFR Advances, shall be suspended (to the extent of the affected Term SOFR Advances or affected Interest Accrual Periods) until the Administrative Agent (at the written instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, (i) the Borrowers may revoke any pending request for a borrowing of, conversion to or continuation of Term SOFR Advances (to the extent of the affected Term SOFR Advances or affected Interest Accrual Periods) or, failing that, the Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Advances in the amount specified therein and (ii) any outstanding affected Term SOFR Advances will be deemed to have been converted into Base Rate Advances at the end of the applicable Interest Accrual Period. Upon any such conversion, the Borrowers shall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to <u>Section 2.12.</u> Subject to <u>Section 2.18</u>, if the Required Lenders reasonably determine (which determination shall be conclusive and binding absent manifest error) that "Term SOFR" cannot be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Advances shall be reasonably determined by the Required Lenders without reference to clause (c) of the definition of "Base Rate" until the Required Lenders revoke such determination.

**Section 2.14<u>Illegality</u>**. If any Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender (or in the case of a Conduit Lender, its Program Support Provider, but only to the extent that the related Committed Lender would be entitled to any payment hereunder) or its applicable lending office to make, maintain or fund Advances whose interest is determined by reference to SOFR, the Term SOFR Reference Rate or Term SOFR, or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate or Term SOFR, then, upon notice thereof by such Lender, who shall promptly forward such notice to the Borrowers (an "<u>Illegality Notice</u>"), (a) any obligation of the Lenders to make Term SOFR Advances, and any right of the Borrowers to continue Term SOFR Advances or to convert Base Rate Advances to Term SOFR Advances, shall be suspended, and (b) the interest rate on which Base Rate Advances shall, if necessary to avoid such illegality, be determined by the Required Lenders without reference to clause (c) of the definition of "Base Rate", in each case until each affected Lender notifies the Required Lenders that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrowers shall, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Term SOFR Advances to Base Rate Advances (the interest rate on which Base Rate Advances shall, if necessary to avoid such illegality, be determined by the Required Lenders without reference to clause (c) of the definition of "Base Rate"), on the last day of the Interest Accrual Period therefor, if all affected Lenders may lawfully continue to maintain such Term SOFR Advances to such day, or immediately, if any Lender may not lawfully continue to maintain such Term SOFR Advances to such day. Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section 2.12</u>.

**Section 2.15<u>Rescission or Return of Payment</u>**. Each 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 Borrowers or any of its Affiliates), the obligation of such 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 shall continue to be effective or be reinstated, as the case maybe, as to such obligations, all as though such payment had not been made.

**Section 2.16<u>Post-Default Interest</u>**. The Borrowers shall pay interest on all Obligations that are not paid when due for the period from the due date thereof until the date the same is paid in full in cash at the Post-Default Rate <u>plus</u> the Applicable Margin. Interest payable at the Post-Default Rate shall be payable on each Payment Date in accordance with the Priority of Payments.

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**Section 2.17<u>Payments Generally</u>**. (a) All amounts owing and payable to any Secured Party, including 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 Borrowers from the Borrower Payment Account, in immediately available funds, in accordance with the Priority of Payments, and all without counterclaim, setoff, deduction, defense, abatement, suspension or deferment. The Manager, the Agents and each Lender shall provide wire instructions for themselves and any applicable affiliated recipients or related counsel to the Borrowers, each Approved Account Bank and the Agents. Any payments received after 3:00 p.m. on a Business Day will be deemed to have been paid on the next following Business Day. To the extent any payment is made to an Approved Account Bank for the account of the Lenders under the Priority of Payments, such Approved Account Bank promptly will make such payment amount available to each Lender on a *pro rata* basis based on the amount due and owed to each Lender at such time by wire transfer to such Lender's 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;(a)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 (or in the case of interest computed by reference to the Base Rate at times when the Base Rate is based on the Prime Rate, such interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year)), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). All interest hereunder on any Advance shall be computed on a daily basis based upon the outstanding principal amount of such Advance as of the applicable date of determination. The applicable Base Rate or Term SOFR shall be determined by the Lead Borrower (acting reasonably and in good faith), and such determination shall be conclusive absent manifest error.

&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 amounts due and payable to a Committed Lender that has a related Conduit Lender or to such Conduit Lender shall be made to such Lenders' Managing Agent for the account of such Lenders.

**Section 2.18<u>Benchmark Replacement Setting</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;(e)<u>Benchmark Replacement</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)Notwithstanding anything to the contrary herein or in any other Facility Document, upon the occurrence of a Benchmark Transition Event, the Required Lenders (in consultation with the Lead Borrower) may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrowers so long as a Responsible Officer of the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section 2.18(a)(i)</u> will occur prior to the applicable Benchmark Transition Start 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)No swap agreement shall be deemed to be a "Facility Document" for purposes of this <u>Section 2.18</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)<u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent (at the written direction of the Required Lenders) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Notices; Standards for Decisions and Determinations</u>. The Lead Borrower will promptly notify the other Borrowers 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 Lead Borrower will notify the other Borrowers and the Lenders of (x) the removal or reinstatement of any tenor of a

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Benchmark pursuant to <u>Section 2.18(d)</u> and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Lead Borrower or the Required Lenders pursuant to this <u>Section 2.18</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 2.18</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;(h)<u>Unavailability of Tenor of Benchmark</u>. 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 Required Lenders (in consultation with the Lead Borrower) 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 Required Lenders (in consultation with the Lead Borrower) 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 clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Required Lenders (in consultation with the Lead Borrower) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Benchmark Unavailability Period</u>. Upon the Borrowers' receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrowers may revoke any pending request for a SOFR Borrowing of, conversion to or continuation of Term SOFR Advances to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Advances and any outstanding affected Term SOFR Advances will be deemed to have been converted to Base Rate Advances at the end of the applicable Interest Accrual Period. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate.

**Section 2.19<u>Increase in Commitment</u>.** &nbsp;&nbsp;&nbsp;&nbsp;

Provided that no Event of Default, Unmatured Event of Default or Manager Termination Event shall exist and be continuing, upon written notice to the Administrative Agent, the Lead Borrower may request prior to end of the Availability Period, that each of the Lenders ratably increase their respective Commitment Amount, in an aggregate amount such that after giving effect to such request the total Commitment Amount shall not exceed $700,000,000. Such notice shall specify (i) the aggregate amount of such increase and (ii) the time period within which the Lenders are requested to respond to the Lead Borrower's request (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Administrative Agent). Each Lender shall notify the Administrative Agent and the Lead Borrower within the applicable time period (which shall not be less than ten (10) Business Days) whether or not such Lender agrees, in its sole discretion, to make such ratable increase to such Lender's Commitment Amount or otherwise agrees to any lesser increase in its Commitment Amount. Any Lender not responding within such time period shall be deemed to have declined to consent to an increase in such Lender's Commitment Amount. If the Commitment Amount of any Lender is increased in accordance with this <u>Section 2.19</u>, the Lenders and the Lead Borrower shall determine the effective date of such Commitment Amount increase and shall enter into such documents as agreed to by such parties to document such increase.

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The Administrative Agent (at the written direction of the Lead Borrower) and the Borrowers are expressly permitted, with the consent of the Required Lenders (not to be unreasonably withheld), to amend this Agreement to the extent necessary or appropriate in the reasonable opinion of the Administrative Agent in consultation with the Lenders to give effect to any increase pursuant to this <u>Section 2.19</u>; <u>provided</u> that no such amendment shall materially and adversely affect the rights or interests of any Lenders, as certified to the Administrative Agent by the Lead Borrower and absent express written objection by the Required Lenders.

**Article III<br>CONDITIONS PRECEDENT**

**Section 3.01<u>Conditions Precedent to Effectiveness of this Agreement</u>**. This Closing Date and the effectiveness of this Agreement shall be subject to the conditions precedent that the Administrative Agent shall have received the following, each in form and substance satisfactory to the Administrative Agent and the Required 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;(a)this Agreement, the Constituent Documents of the Initial Borrower and the Initial SPV Guarantor, the Lender Fee Letter and the BNY Fee Schedule shall be 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a certificate of a Responsible Officer of the Initial Borrower and the Initial SPV Guarantor attaching and certifying (i) its Constituent Documents, (ii) its resolutions or other action of its member approving the Facility Documents to which it is a party and the transactions contemplated thereby, (iii) that its representations and warranties set forth in the Facility Documents to which it is a party are 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) (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects), (iv) the incumbency and specimen signature of each of its Responsible Officers authorized to execute the Facility Documents to which it is a party and (v) that no Unmatured Event of Default or Event of Default has occurred and is continuing;

&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)a certificate of a Responsible Officer of the Manager attaching and certifying (i) its Constituent Documents, (ii) its resolutions or other action of its governing body approving the Facility Documents to which it is a party and the transactions contemplated thereby, (iii) that its representations and warranties set forth in the Facility Documents to which it is a party are 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) (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects), (iv) the incumbency and specimen signature of each of its Responsible Officers authorized to execute the Facility Documents to which it is a party and (v) that no Manager Termination Event has occurred and is continuing;

&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)legal opinions (addressed to the Administrative Agent, the Lenders and their permitted assignees) of (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to the Initial Borrower and the Initial SPV Guarantor and (ii) Debevoise & Plimpton LLP, counsel to the Manager, covering such matters with respect to the Initial Borrower, the Initial SPV Guarantor or the Manager, as applicable, as any Agent or its counsel shall reasonably request, including but not limited to, as applicable, corporate organization, capacity, power and authority, due execution and delivery, recognition of judgments, enforceability, no conflicts, no litigation, margin stock, Investment Company Act and substantive non-consolidation and UCC matters (including, without limitation, creation and perfection of security interests), each in form and substance satisfactory to the Agent or Agents requesting such opinion;

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&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)good standing certificates with respect to each of the jurisdictions where Initial Borrower and the Initial SPV Guarantor are organized;

&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)proper financing statements, to be duly filed under the UCC, in all jurisdictions that the Required Lenders deem necessary or desirable in order to perfect the Liens on the Collateral contemplated by 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;(g)an Independent Director shall have been appointed for the Initial Borrower and the related SPV Guarantor;

&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 the extent requested at least ten (10) Business Days prior to the Closing Date, the Lenders shall have received at least five (5) Business Days prior to the Closing Date all documentation and other information required by bank regulatory authorities under applicable "know-your-customer" and anti-money laundering rules and regulations, including the PATRIOT Act; 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;(i)an officer's certificate from the Initial Borrower and the Initial SPV Guarantor stating that all conditions precedent under this <u>Section 3.01</u> have been satisfied or waived by an authorized party.

**Section 3.02<u>Conditions Precedent to Initial Borrowing</u>**. The initial Advance to be made hereunder, and the election of each Conduit Lender and the obligation of each other Lender, to fund, on the initial Borrowing Date shall be subject to the fulfillment of the following conditions:

&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 Facility Document contemplated to be in effect on or prior to the initial Borrowing Date each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)evidence satisfactory to the Required Lenders that the Borrower Payment Account and the Borrower Interest Reserve Account have been established;

&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)a Specified Lender Side Letter in form and substance satisfactory to the beneficiary of such letter, duly executed by a Responsible Officer of each Loan Party;

&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 requested at least ten (10) Business Days prior to the first Acquisition Date, the Collateral Agent shall have received at least five (5) Business Days prior to such Acquisition Date all documentation and other information required by bank regulatory authorities under applicable "know-your-customer" and anti-money laundering rules and regulations, including the PATRIOT Act; 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;(e)the reporting requirements under <u>Schedule 3</u> have been reasonably agreed upon by the Required Lenders and the Lead Borrower.

**Section 3.03<u>Conditions Precedent to Each Borrowing</u>**. Each Advance to be made hereunder, if any, (including the initial Advance), and the election of each Conduit Lender and the obligation of each other Lender, to fund, on each Borrowing Date shall be subject to the fulfillment of the following conditions:

&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 Required Lenders (with a copy to the Administrative Agent) shall have received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Notice of Borrowing with respect to such Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)and if such date is an Asset Acquisition Date, the related Asset Acquisition Package for the assets to be acquired from the proceeds of such Advance (including, without limitation, duly executed copies of each Intellectual Property Security Agreement then contemplated to be entered into as of the related Asset Acquisition Date), and the related Asset Acquisition Procedures shall have been complied with (including, without limitation, the filing,

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registration or recording of all additional financing statements and the registering or recording of any Intellectual Property Security Agreements necessary to ensure the Collateral Agent's first priority perfected security interest (on behalf of the Secured Parties) in the assets being acquired);

&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 Borrowing Date is an Asset Acquisition Date, (i) the Acquisition/Disposition LTV Ratio shall be less than the Maximum LTV Ratio then in effect after giving effect to such acquisition and such Advance, (ii) the DSCR (after giving *pro forma* effect to the proposed Borrowing) shall be equal to or greater than the Minimum DSCR and (iii) the LTV Ratio shall be less than the Maximum LTV Ratio then in effect after giving effect to such Advance, in each case, as demonstrated in the calculations attached to the applicable Notice of 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;(c)if such Borrowing Date is an Asset Acquisition Date and an additional Loan Party is being joined on such date pursuant to <u>Section 2.01(a)</u> then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)good standing certificates with respect to each of the jurisdictions where each such additional Loan Party is organized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)legal opinions (addressed to the Administrative Agent, the Lenders and their permitted assignees) of counsel to the Loan Parties covering such matters with respect to each such additional Loan Party, as any Agent or its counsel shall reasonably request, each in form and substance substantially the same as the opinions delivered on the Closing Date or otherwise reasonably satisfactory to the Person requesting such opinion; 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)each such additional Loan Party shall have executed and delivered a Joinder Agreement in the form of <u>Exhibit A</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)if such Borrowing Date is not an Asset Acquisition Date, (i) the LTV Ratio shall be less than the Maximum LTV Ratio then in effect after giving effect to such Advance and (ii) the DSCR (after giving *pro forma* effect to the proposed Borrowing) shall equal or exceed the DSCR in effect immediately prior to the Borrowing (or, if the Borrowers have completed an acquisition of assets during the then-current Collection Period, the DSCR on a *pro forma* basis after giving effect to such acquisition of assets, in effect as of the date of the Notice of Borrowing), in each case, as demonstrated in the calculations attached to the applicable Notice of Borrowing; <u>provided</u> that, (x) the Aggregate Collateral Value will be calculated on a pro forma basis to exclude the Appraisal Values and Non-Appraisal Values of each Specified Music Product and (y) the Administrative Agent and each Lender will be provided evidence reasonably satisfactory to them of the Allocable Debt for each Music Product as of such date after giving effect to such Advance;

&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)immediately after the making of such Advance on the applicable Borrowing Date (and the concurrent consummation of any acquisitions of assets financed by such Advance), the aggregate outstanding principal balance of the Advances (x) shall be less than or equal to the Aggregate Collateral Value at such time, as demonstrated in the calculations attached to the applicable Notice of Borrowing and (y) shall not exceed the Commitment Amount at any time;

&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)each of the representations and warranties of each Loan Party contained in this Agreement and the other Facility Documents shall be true and correct in all material respects (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct) 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);

&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)evidence satisfactory to the Required Lenders that any necessary Borrower Liability Reserve Accounts has been established;

&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)if such Borrowing Date is an Asset Acquisition Date, Lien searches pursuant to the UCC and copyright searches at the United States Copyrights Office demonstrating that the related assets to be acquired on such date are free and clear of liens;

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&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)(i) no Manager Termination Event, Unmatured Event of Default or Event of Default 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 (ii) the amount on deposit in the Borrower Interest Reserve Account shall be at least equal to the Interest 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;(j)if such Borrowing Date is an Asset Acquisition Date, all terms and conditions of each applicable Asset Transfer Agreement required to be satisfied in connection with the transfer of any asset being pledged hereunder on such Borrowing Date, including the perfection of the applicable Borrower's and the Secured Parties' interests therein, shall have been satisfied 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;(k)if such Borrowing Date is an Asset Acquisition Date, the Borrowers and the Manager shall have taken all steps necessary under all Applicable Law in order to cause to exist in favor of the Collateral Agent, for the benefit of the Secured Parties, a valid, subsisting and enforceable first priority perfected security interest in each applicable Borrower's right, title and interest in any additional assets being acquired by such Borrower in connection with such Borrowing 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;(l)receipt of all fees and expenses to be received by each Agent and each Lender (including fees and expenses of each Agent's counsel) on or prior to such Borrowing Date pursuant to the Lender Fee Letter and the BNY Fee Schedule or otherwise have been received;

&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)evidence satisfactory that after giving *pro forma* effect to such Advance, the outstanding principal amount of all Advances does not exceed 57.5% of the Aggregate Collateral Value;

&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)if such Borrowing Date is an Asset Acquisition Date, evidence satisfactory to each Lender that the Minimum Equity Payment for the Music Products being acquired on such Asset Acquisition Date has been funded by the Equity Holders of the applicable Borrower; 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;(o)an officer's certificate from the Lead Borrower stating that all conditions precedent under this <u>Section 3.03</u> have been satisfied or waived.

**Article IV<br>REPRESENTATIONS AND WARRANTIES**

**Section 4.01<u>Representations and Warranties of the Loan Parties</u>**. Each Loan Party represents and warrants to each of the Secured Parties on and as of the Closing Date and each Borrowing Date, 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;(a)<u>Due Organization</u>. Such Loan Party is duly organized and validly existing under the laws of its jurisdiction of incorporation, organization or formation, as applicable, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Due Qualification and Good Standing</u>. Such Loan Party is in good standing under the laws of its jurisdiction of incorporation, organization or formation, as applicable. Such Loan Party 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 do so could not reasonably be expected to result in a Material Adverse Effect on any Loan Party.

&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)<u>Due Authorization; Execution and Delivery; Legal, Valid and Binding; Enforceability</u>. The execution and delivery by such Loan Party 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 and have been duly executed and delivered by it or on its behalf and constitute its legal, valid and binding obligations enforceable against it in accordance with their respective terms, except as enforceability may

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be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally or general principles of equity (to the extent not related to inequitable conduct of such Loan Party), 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;(d)<u>Non-Contravention</u>. None of the execution and delivery by such Loan Party 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 (with or without notice of lapse of time or both) a default under its Constituent Documents, (ii) conflict with or contravene (A) any Applicable Law in any respect, (B) any indenture, agreement or other contractual restriction binding on or affecting it or any of its assets, including any Collateral Documents, 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 conflict with, 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 each case referred to in clauses <u>(ii)</u> and <u>(iii)</u>, to the extent such conflict, breach, violation, default or acceleration would reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole). Without limiting any restrictions or other covenants hereunder, such Loan Party is not, in default under any such indenture, agreement or other contractual restriction binding on or affecting it or any of its assets, including any Collateral Document, with respect to which such default, either individually or in the aggregate with other defaults, would reasonably be expected to have a Material Adverse Effect on the Loan Parties (taken as a whole). Such Loan Party is not subject to any proceeding, action, litigation or investigation pending, or to the knowledge of such Person, overtly threatened in writing against or affecting it or its assets, before any Governmental Authority seeking to prevent the consummation or performance of any of the transactions contemplated by this Agreement and the other Facility Documents or that could result in a Material Adverse Effect on the Loan Parties (taken as a whole).

&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)<u>Governmental Authorizations; Private Authorizations; Governmental Filings</u>. Such Loan Party has obtained or applied for, maintained and kept in full force and effect all Governmental Authorizations and Private Authorizations which are reasonably necessary for it to properly carry out its business and made all Governmental Filings necessary for the execution and delivery by it of the Facility Documents to which it is a party, the Borrowings by such Loan Party under this Agreement, the pledge of the Collateral by such Loan Party under this Agreement and the performance by such Loan Party of its obligations under this Agreement and the other Facility Documents to which it is a party, in each case, to the extent a failure to do so would reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole), and no Governmental Authorization, Private Authorization or Governmental Filing which has not been obtained, applied for 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 such Loan Party under this Agreement, the pledge of the Collateral by such Loan Party under this Agreement or the performance of its obligations under this Agreement and the other Facility Documents to which it is a party, in each case, to the extent a failure to do so would reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole).

&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)<u>Compliance with Agreements, Laws, Etc</u>. Such Loan Party has duly observed and complied (i) in all respects with all Applicable Laws relating to the conduct of its business and its assets, including all activities contemplated by the Facility Documents, unless a failure to do so would not reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole) (ii) in all material respects with its Constituent Document, (iii) with any judgment, decree, writ, injunction, order, award or other action of any Governmental Authority having or asserting jurisdiction over it or any of its properties, unless a failure to do so could not result in a Material Adverse Effect on the Loan Parties (taken as a whole) and (iv) with the terms and provisions of this Agreement and each other Facility Document to which it is a party. Such Loan Party has preserved and kept in full force and effect its legal existence, rights, privileges, qualifications and franchises. Without limiting the foregoing, (x) to the extent applicable, such Loan Party is in compliance in all material respects with the regulations and rules

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promulgated by the U.S. Department of Treasury or administered by the U.S. Office of Foreign Asset Controls ("<u>OFAC</u>"), including U.S. Executive Order No. 13224, and other related statutes, laws and regulations (collectively, the "<u>Subject Laws</u>"), (y) such Loan Party has adopted internal controls and procedures designed to ensure its continued compliance with the applicable provisions of the Subject Laws and to the extent applicable, will adopt procedures consistent with the PATRIOT Act and implementing regulations, and (z) to the knowledge of such Loan Party (based on the implementation of its internal procedures and controls), no direct investor in such Loan Party is a Person whose name appears on the "List of Specially Designated Nationals" and "Blocked Persons" maintained by the OFAC.

&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)<u>Location and Legal Name</u>. Such Loan Party's (i) chief executive office, (ii) principal place of business, (iii) registered office, (iv) jurisdiction of incorporation, organization or formation, as applicable, (v) the location in which it maintains its books and records, (vi) tax identification, other applicable entity identification number or other relevant information necessary for UCC filings in applicable jurisdictions, (vii) to the extent applicable, each alternative name and former name used by such Loan Party and (viii) to the extent any of the foregoing information has changed in the past five years, all prior such information for such five-year period, is in each case listed on <u>Schedule 2</u> hereto, as updated from time to time in accordance with <u>Section 5.02(h)</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;(h)<u>Investment Company Act; Volcker Rule</u>. Such Loan Party is not required to register as an "investment company" within the meaning of the Investment Company Act. Such Loan Party is not a "covered fund" under Section 619 of the Dodd Frank Wall Street Reform and Consumer Protection Act. In determining that it is not a covered fund, such Loan Party has determined that it is excluded from the definition of "investment company" in Section 3(a) of the Investment Company Act although other exemptions may be 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;(i)<u>Information and Reports</u>. Each Notice of Borrowing, each Release Request, each Periodic Report, each Asset Acquisition Package (other than any Asset Diligence Report) and all other written information, reports, certificates and statements (other than projections and forward-looking statements) furnished by or on behalf of such Loan Party or the 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, when taken together with all related written information furnished by or on behalf of such Loan Party or the Manager, true, complete and correct in all material respects as of the date such information is provided, stated or certified and does not omit any material fact necessary in order to make the statements contained therein not misleading. Without limiting the foregoing, Borrower has furnished a true, complete and correct copy of the Asset Diligence Report prepared for the Borrowers, each Asset Transfer Agreement and each Legacy Purchase Agreement, in each case, as of the date provided pursuant to <u>Section 2.02(a)</u> or <u>(b)</u>, as applicable, and to the extent required to be provided hereunder, each Administration Agreement, each Music Agreement and each Revenue-Generating Agreement (as applicable) in connection with each related asset acquisition. With respect to each acquisition of assets by any Loan Party financed with (or to be financed with) the proceeds of an Advance, each related Appraisal delivered hereunder satisfies the Appraisal Requirements, and each related Asset Acquisition Package delivered hereunder has been delivered in compliance with the Asset Acquisition Procedures.

&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)<u>ERISA</u>. Neither such Loan Party nor any member of its ERISA Group has, or during the past six years has had, any material liability or material obligation with respect to any Plan or Multiemployer Plan (including any actual liability on account of a member of the ERISA Group).

&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)<u>Taxes</u>. Such Loan Party has filed all federal income tax returns and all material other tax returns which are required to be filed by it, if any, and has paid all Taxes, shown to be due and payable (taking into account extensions) on such returns, assessments, fees and other governmental charges levied or imposed upon it or its properties, income or assets otherwise due and payable, except (i) for any Taxes which are being contested in good faith by appropriate proceedings and with respect thereto adequate reserves are being maintained in accordance with GAAP or (ii) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Tax Status</u>. For U.S. federal income tax purposes (i) each Loan Party is classified as a "disregarded entity" whose sole regarded owner for U.S. federal income tax purposes is a

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U.S. Person, (ii) no Loan Party nor any record or beneficial owner of a Loan Party has made an election under Treasury regulations section 301.7701-3 for any Loan Party to be classified as an association taxable as a corporation and no Loan Party is otherwise treated as an association taxable as a corporation, including a taxable mortgage pool treated as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes and (iii) no Loan Party is subject to any requirement to withhold tax with respect to payments or income allocable to its direct or indirect beneficial owners (including under Section 1446 of the 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;(m)<u>Collections and Accounts</u>. All Collections in respect of such Loan Party's assets shall be deposited either directly into its Collection Account or directly to the Borrower Payment Account, and all necessary Asset Payment Instructions are in full force and effect to ensure the foregoing. No Person has any interest in any Collection Account other than those Persons permitted to have an interest therein pursuant to the applicable Account Collateral Agreement. No Person other than the Loan Parties, the Secured Parties and the related Approved Account Bank has any interest in any Borrower 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;(n)<u>Plan Assets</u>. The assets of such Loan Party are not, and shall not be, treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA and the Collateral is not deemed to be "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. Such Loan Party has not taken, or omitted to take, and shall not take or omit to take, any action which would reasonably be expected to result in any of the Collateral being treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.

&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)<u>Solvency</u>. After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, such Loan Party is Solvent.

&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)<u>Prior Business Activity and Indebtedness</u>. Such Loan Party has no business activity except as contemplated in this Agreement and the other Facility Documents, and as of the date hereof is not party to any other debt, financing or other transaction or agreement other than the Facility Documents. Such Loan Party has not incurred, created or assumed any Indebtedness except for Indebtedness that has been paid in full in cash on or prior to the date hereof (excluding contingent obligations relating thereto that have not accrued) and any Indebtedness arising under or expressly permitted by this Agreement or the other 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;(q)<u>Subsidiaries; Investments</u>. The Borrowers have no subsidiaries and do not own or hold directly or indirectly, any capital stock or equity security of, or any equity interest in, any Person, other than any special purpose wholly-owned subsidiary of a Borrower organized in the State of Delaware with Constituent Documents substantially similar to those of the Initial 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;(r)<u>Ordinary Course of Business</u>. Each payment of interest and principal on the Advances will have been (i) in payment of a debt incurred in the ordinary course of business or financial affairs on the part of such Loan Party and (ii) made in the ordinary course of business or financial affairs of such Loan Party.

&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)<u>Asset Agreements</u>. With respect to each Asset Agreement as of the related Asset Acquisition 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)each Borrower has performed all of the material terms, covenants and conditions on its part, which are contained in the Asset Agreements or otherwise pertain to any one or more of the Music Products except for the failure of any such performance that, either individually or in the aggregate, could not reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)each of the Asset Agreements is in full force and effect, except any such Asset Agreements the loss of which, either individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the knowledge of any Borrower, (i) no default by any party thereto exists and (ii) no party thereto is delinquent in payment of any other amounts required to be paid thereunder, in each case, that would reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)such Asset Agreement complies with, and will not violate, any Applicable Law except as would not reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)such Asset Agreement permits each Borrower party thereto to grant a security interest of its interests thereunder to the Collateral Agent without any consent or approval from any other Person pursuant to this Agreement and the Collateral 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)as of such Asset Acquisition Date, the Collateral includes each Borrower's rights to receive payments under the Asset Agreements.

&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)<u>Intellectual Property</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)(1) <u>Schedule 4(a)</u> of the Intellectual Property Schedule sets forth a true and complete list of all issued Patents and pending Patent applications owned by such Loan Party; (2) <u>Schedule 4(b)</u> of the Intellectual Property Schedule sets forth a true and complete list of all registered Trademarks and all applications for registrations of Trademarks owned by such Loan Party; and (3) <u>Schedule 4(c)</u> of the Intellectual Property Schedule sets forth a true and complete list of all registered Copyrights and all applications for registration of Copyrights owned by such Loan Party, together with a correct and complete description, with respect to each registered Copyright that is a Musical Composition or Master Recording, of (A) the Loan Parties' undivided Copyright ownership interest in such Musical Composition or Master Recording, as applicable, and (B) the applicable registration number(s) and registration date(s) from the United States Copyright Office and from any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof; provided that, in each case of clauses (1)-(3), with respect to registered Intellectual Property and applications therefor in countries other than the United States, such Intellectual Property is listed to the extent that the Loan Parties have actual knowledge 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Except as disclosed to the Required Lenders (with a copy to the Administrative Agent) in writing prior to the applicable Asset Acquisition Date, all Copyrights that are Musical Compositions and/or Master Recordings have been duly registered in the United States Copyright Office, or will be submitted for registration, prior to the applicable Asset Acquisition Date and each Person transferring any such Copyright to a Loan Party has (prior to the applicable Asset Acquisition Date) recorded, and each applicable Loan Party shall (on the applicable Asset Acquisition Date) submitted to record, its interest therein in the United States Copyright Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such Loan Party's knowledge, all Intellectual Property owned by such Loan Party is valid, subsisting, unexpired and enforceable and has not been abandoned. No holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity, enforceability or ownership of any Registered Intellectual Property owned by such Loan Party other than as disclosed to the Required Lenders in writing (with a copy to the Administrative Agent). No action or proceeding is pending seeking to limit, cancel or question the validity, enforceability or ownership of any Registered Intellectual Property owned by such Loan Party other than as disclosed to the Required Lenders in writing (with a copy to the Administrative 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Each Loan Party owns, is licensed to use or otherwise has the right to use, all Intellectual Property that is necessary to the conduct of such Loan Party's business as currently conducted except for such Intellectual Property the failure of which to own or license or otherwise have the right to use would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)No Musical Composition or Master Recording violates or infringes any common law or statutory rights (including Copyrights) or any other rights or works of any third party or Person, except where such violation or infringement could not reasonably be expected to have a Material Adverse Effect. To the knowledge of each Loan Party, (A) no product or service of any Loan Party infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person, (B) there is no material violation by any Person of any right of any Loan Party with respect to any Intellectual Property owned or used by any Loan Party, (C) each of the Loan Parties owns or possesses all consents, licenses, certificates, authorizations, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, necessary to conduct such Loan Party's business , that individually or in the aggregate are material, without conflict with the rights of others, and (D) none of such Loan Party's Intellectual Property infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by 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;(u)<u>Representations Relating to the Collateral</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 Loan Parties own and have legal and beneficial title to all 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in favor of the Collateral Agent, on behalf of the Secured Parties, in the Collateral, which is enforceable in accordance with its terms under the Applicable Law, is prior to all other Liens and is enforceable as such against creditors of and purchasers from any Loan Party, subject to Permitted Liens. All filings (including UCC filings and Intellectual Property Security Agreements) as are necessary in any jurisdiction to perfect the interest of the Collateral Agent on behalf of the Secured Parties, in the Collateral have been or, concurrently with the effectiveness of this Agreement, shall be made and are or will be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)This Agreement constitutes a security agreement within the meaning of Section 9-102(a)(74) of the UCC as in effect from time to time in the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Other than Permitted Liens, such Loan Party has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral. Such Loan Party has not authorized the filing of and is not aware of any financing statements against such Loan Party that include a description of collateral covering the Collateral other than any financing statement relating to the security interest granted to the Collateral Agent hereunder or that has been terminated; and such Loan Party is not aware of any judgment liens, PBGC liens or tax lien filings against such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Such Loan Party has taken, or prior to the initial Advance hereunder shall take, all steps necessary to enable the Collateral Agent to obtain "control" (within the meaning of the UCC) with respect to each Borrower 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;(vi)All actions necessary in order to create a valid, continuing and perfected security interest (as defined in Section 1-201(b)(35) of the UCC) in the Collateral in favor of the Collateral Agent, for the benefit of the Secured Parties have been taken, including without limitation the filing of all applicable financing statements, the submission for recording of all applicable Copyright Security Agreements, the entry into each applicable Account Control Agreement and the delivery of all physical Collateral to the Collateral Agent; such security interest is prior to all other Liens (other than Permitted Liens), claims and encumbrances and is enforceable as such against creditors of and purchasers from such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Such Loan Party has received all consents and approvals required by the terms of the Collateral Documents in respect of the acquisition of its assets and the pledge of its assets hereunder to the Collateral Agent, for the benefit of the Secured Parties, and no further

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notice or consent to any Person is required for the enforcement or exercise of the rights and remedies of the Secured Parties following an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Appraisal delivered hereunder in respect of such Loan Party's assets complies with the Appraisal Requirements, and such Loan Party has no reason to believe that the Appraisal Value of such Loan Party's assets, as reflected in the most recent Appraisal delivered hereunder, does not reflect the reasonable fair value of such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)There are no liabilities associated with such Loan Party's assets for which any Loan Party is responsible other than Permitted Liabilities.

&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)<u>Representations Relating to the Collateral in Connection with a Borrowing</u>. Such Loan Party acknowledges and agrees that, upon each delivery of a Notice of Borrowing to the Administrative Agent, such Loan Party will be deemed to have represented, warranted and certified for all purposes hereunder that in the case of each item of Collateral pledged to the Collateral Agent, on the date thereof and on the relevant Borrowing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)such Loan Party is the owner of such Collateral free and clear of any Liens, claims or encumbrances of any nature whatsoever except for (A) those which are being released on the related Borrowing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)such Loan Party has acquired its ownership in such Collateral in good faith without notice of any adverse claim, except as described in clause (i) 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;(iii)such Loan Party 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 interests granted or permitted 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)such Loan Party has full right to grant a security interest in and assign and pledge such Collateral to the Collateral Agent for the benefit of the Secured 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)upon the proper filing and recording of the Collateral Documents, Collateral Agent shall have a first priority perfected security interest in the Collateral, except as otherwise permitted by 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;(w)<u>USA PATRIOT Act</u>. (a) None of the Loan Parties or any of their respective Affiliates, or any of their respective directors, officers or employees; and (b) to the knowledge of such Loan Party, no agent or Person (other than the directors and officers covered in clause (a) above) acting on behalf of such Loan Party or any Affiliate that will act in any capacity in connection with or benefit from this Agreement, is (1) a Sanctioned Person; (2) a Person that resides or has a place of business in a Sanctioned Country or which is designated as a "non-cooperative jurisdiction" by the Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (3) a "Foreign Shell Bank" within the meaning of the PATRIOT Act, <u>i.e.</u>, a foreign bank that does not have a physical presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (4) a Person that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under Section 311 or 312 of the PATRIOT Act as warranting special measures due to money laundering concerns. No Borrowing, use of proceeds or other transaction by a Loan Party contemplated by this Agreement will violate Sanctions applicable to any party to this Agreement.

**Article V<br>COVENANTS**

**Section 5.01<u>Affirmative Covenants of the Loan Parties</u>**. Each Loan Party, and the Manager on behalf of each Loan Party, covenants and agrees that, until the date that all Obligations have been paid in full in cash (other than contingent indemnity obligations not yet due and owing):

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&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>Compliance with Agreements, Laws, Etc</u>. It shall (i) duly observe and comply in all respects with all Applicable Laws relative to the conduct of its business or to its assets, including all laws applicable to its assets and its activities and obligations as contemplated by the Facility Documents, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect on any Loan Party, (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 (including all licenses or qualifications applicable to its assets and its activities contemplated by the Facility Documents), except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect on any Loan Party, (iv) comply with the terms and conditions of each Facility Document and in all material respects with its Constituent Documents 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 to which it is a party and its Constituent Documents, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect on any Loan Party. Each Loan Party has instituted, and will continue to maintain and enforce, policies and procedures reasonably designed to promote compliance with the 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;(b)<u>Enforcement</u>. (i) It shall not take any action, and will use commercially reasonable efforts not to permit any action to be taken, that would release any Obligor from any of such Obligor's covenants or obligations under any Collateral Document, except in the case of (A) payment in full in cash of all Collections contemplated to be paid thereunder, (B) subject to the terms of this Agreement, (1) amendments to Asset Agreements that are reasonably deemed by the Manager to be necessary, immaterial, or beneficial, taken as a whole, to the Loan Parties, are otherwise in compliance with the terms hereof, and not detrimental to the Agents and the Lenders and (2) enforcement actions taken with respect to any defaults or breaches by any Obligor under any Collateral Document in accordance with the provisions hereof and the Management Agreement (including the Management Standard), (C) actions by the Manager in conformity with the Management Standard and this Agreement or the Management Agreement or as otherwise required hereby or thereby, as the case may be, or (D) as required pursuant to Applicable Law or, unless in violation of this Agreement, any other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Such Loan Party (and the Manager on behalf of each Loan Party) shall punctually perform or cause to be performed all of its obligations and agreements contained in this Agreement or any other Facility Document, and shall (i) enforce, to the extent reasonably requested by the Required Lenders, and (ii) otherwise use commercially reasonable efforts to enforce the obligations and agreements of each Obligor under each Collateral Document (including without limitation any obligations or agreements intended to restrict or prohibit actions to prohibit, impede, delay or hinder the exploitation or monetization of any Intellectual Property or other Collateral or reducing, diminishing, divesting, derogating or otherwise adversely affecting any Loan Party's rights or interests therein), in each case in a manner consistent with the Management Standard.

&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)<u>Further Assurances</u>. Such Loan Party shall take such reasonable action from time to time as shall be necessary to ensure that its Music Products, Music Product Rights, Intellectual Property and other assets constitute "Collateral" hereunder. Such Loan Party will, and promptly upon the reasonable request of the Administrative Agent, acting at the written direction of the Required Lenders, shall, at the Loan Parties' 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 (including without limitation all Intellectual Property) pledged by the Loan Parties for the benefit of the Secured Parties free and clear of any Liens (other than Permitted Liens), including all further 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, this Agreement and the other Facility Documents. Without limiting its obligation to maintain and protect the Collateral Agent's first priority security interest in the Collateral, such Loan Party hereby (i) authorizes the Administrative Agent (including for purposes of Section 9-509 of the UCC), at the written direction of the Required Lenders, to file or record financing statements (including financing statements describing the Collateral as "all assets" or the equivalent), continuation statements and other filing or recording documents or instruments with respect to the Collateral in such

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form and in such offices as the Required Lenders deem necessary or desirable to perfect the security interests of the Collateral Agent (for the benefit of the Secured Parties) under this Agreement under each method of perfection required herein with respect to the Collateral and (ii) authorizes the Administrative Agent, at the written direction of the Required Lenders, to file with the United States Patent and Trademark Office, the United States Copyright Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, any Intellectual Property Security Agreements or other documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interests granted therein by such Loan Party, without its signature, and naming such Loan Party as debtor and the Collateral Agent as secured party (for the benefit of the Secured Parties); <u>provided</u> that neither Agent assumes (nor shall be deemed to have assumed) any obligation whatsoever of any Loan Party to maintain and protect the Collateral Agent's security interest in the Collateral (for the benefit of the Secured Parties), and all costs of, or incidental to, any of the foregoing filings, recordings, registrations or other actions shall be paid or reimbursed by the Loan Parties. Such Loan Party will, in connection with the foregoing, deliver such proof of corporate action, incumbency of officers or other documents as are reasonably requested by the Administrative Agent to evidence appropriate authority of the officers signing or authorizing any such documents, instruments or filings.

&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)<u>Other Information</u>. It shall provide to the Administrative Agent and the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)beginning with the fiscal year ending September 2025, as soon as available and in any event within one hundred fifty (150) days after the end of each fiscal year, an audited consolidated balance sheet of the Loan Parties (or, as elected by the Lead Borrower, the Person consolidating the Loan Parties) as at the end of such fiscal year and the related consolidated statements of income and cash flows for such annual period, all reported on in conformity with GAAP, which financial statements shall be prepared and certified without any material qualification relating to going concern (except (i) to the extent such qualification results solely from (x) the impending maturity of any indebtedness or (y) any prospective or actual breach under (or potential liability on a future date or in a future period to satisfy) any financial covenant under, any indebtedness or (ii) an "emphasis of matter" paragraph);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 ninety (90) days following the end of the first three fiscal quarters of each fiscal year, commencing with the fiscal quarter ending December 2025, an unaudited consolidated balance sheet of the Loan Parties (or, as elected by the Lead Borrower, the Person consolidating the Loan Parties) as at the end of such fiscal quarter and the related consolidated statements of income and cash flows for such quarterly 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)all such financial statements shall be prepared in reasonable detail and in accordance with GAAP in all material respects applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)simultaneously with the delivery of each set of financial statements and financial information referred to in <u>clauses (i)</u> and <u>(ii)</u> above, a certificate of a Responsible Officer of each Loan Party certifying that no Manager Termination Event, Unmatured Event of Default or Event of Default then exists and, otherwise, setting forth the details thereof and the amount and the action which the Loan Parties, the Manager or other relevant Person is taking or proposes to take with respect thereto (which, in the case of an Unmatured Event of Default, shall be described if such action is known to the Borrowers at the time such certificate is delivered);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)as soon as possible and no later than five (5) Business Days after a Responsible Officer of a Loan Party obtains actual knowledge of the occurrence and continuance of any (x) Unmatured Event of Default or (y) Event of Default, a certificate of a Responsible Officer of each Loan Party setting forth the details thereof and the action which the Loan Parties, the Manager or other relevant Person is taking or proposes to take with respect thereto (which, in the case of an Unmatured Event of Default, shall be described if such action is known to the Loan Parties at the time such certificate is delivered);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)from time to time such additional information or documents regarding each Borrower's financial position or business and the Collateral (including reasonably detailed calculations of the LTV Ratio and the DSCR within the Periodic Report, as of any prior Measurement Date) as the Administrative Agent, at the written direction of the Required Lenders, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)promptly after the occurrence of any ERISA Event that would reasonably be expected to result in material liability to any Loan Party, notice of such ERISA Event and copies of any communications with all Governmental Authorities or any Multiemployer Plan with respect to such ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)(A) by no later than five (5) Business Days (or if earlier, the first Measurement Date) following knowledge thereof by any Loan Party, a written notice to each Agent if any Obligor became subject to an Insolvency Event, is deceased or fraud is discovered in connection with the origination or acquisition of the relevant asset, and (B) at any time upon the reasonable request by any Agent or a Lender, such Loan Party shall provide, or cause to be provided, to the Agents or the Lenders any information or document relating to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)promptly following any request therefor by any Lender, such Loan Party shall provide, to the extent commercially reasonable, information and documentation reasonably requested by any Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the PATRIOT Act, the Beneficial Ownership Regulation (31 C.F.R. § 1010.230) or other applicable anti-money laundering laws, including but not limited to a beneficial ownership certification in form reasonably acceptable to the applicable Agent or Lender and shall promptly notify the Administrative Agent of any change(s) to beneficial ownership or control party information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)within ten (10) Business Days of the occurrence of any proceeding, action or litigation pending before any Governmental Authority (to the extent such Loan Party has knowledge or notice thereof), which, if adversely determined, would reasonably be expected to have a Material Adverse Effect on any Loan Party (taken as a whole), a written notice to the Required Lenders (with a copy to each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)simultaneously with the delivery of each Periodic Report, any reports and calculations prepared by, on behalf of or for any Manager or any Loan Party with regards to the Collections during the related Collection Period, if any; 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;(xii)upon request, copies of or access to all account statements and similar records relating to the Collection Accounts and each Borrower Account, promptly after the same become 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;(e)<u>Access to Records and Documents</u>. Upon reasonable advance notice and during normal business hours, the Loan Parties shall permit any Lender (or any Person designated by any Agent or such Lender) to visit and inspect and make copies thereof no more than one (1) time per year, or as often and at any time in the sole discretion of the Required Lenders following the occurrence of an Event of Default which remains continuing and has not been waived, of (i) the Manager's and each Loan Party's books, records and accounts relating to its business, financial condition, operations, assets, the Collateral and its performance under the Facility Documents and to discuss the foregoing with its and such Person's officers, partners, employees and accountants, (ii) any Collateral Documents and the ability to review and access any payment history with respect to the Collateral in the possession of or reasonably available to any Loan Party or any Manager and (iii) a listing or other description of all assets then owned by each Loan Party that are contemplated to generate any material amount of Collections, together with information sufficient to reconcile such listings with the information contained in Appraisals and Periodic Reports. The Loan Parties shall be responsible for the costs and expenses for one such visit per calendar year requested by the Administrative Agent (at the written direction of the Required Lenders), up to $50,000 per annum (which amount shall be in the aggregate for any visit conducted prior to an Event of Default under the Facility Documents), unless an Event of Default has occurred and is continuing, in which case the Loan Parties shall be responsible for all costs and expenses for each visit. The Loan

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Parties (and the Manager on their behalf) shall also consult with the Required Lenders (or any Person designated by the Required Lenders) in connection with any exercise of any similar inspection rights granted to it with respect to any Manager, any Obligor or any other Person, and will use commercially reasonable efforts to have the findings of any such inspection provided directly to the Required Lenders, or will promptly provide any such findings provided to it in connection with the exercise of such inspection rights to the Required Lenders. In the event a Loan Party has not exercised any such inspection rights granted to it, the Administrative Agent, solely if directed by the Required Lenders, shall request such Loan Party to exercise such rights, and such Loan Party will use reasonable efforts to comply with any such reasonable request to exercise inspection and audit 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;(f)<u>Use of Proceeds</u>. It may use the proceeds of any Advance made hereunder (i) to fund, pay or refinance the acquisition cost of assets acquired by such Loan Party in accordance with the Asset Acquisition Procedures on the related Borrowing Date, and all fees and expenses related thereto, and (ii) for general corporate and working capital purposes; <u>provided</u> that, no proceeds of any Advance shall be used for any acquisition or investment by a Loan Party, other than as permitted by <u>clause (i)</u> above.

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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)[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;(h)<u>No Other Business</u>. Such Loan Party shall not engage in any business or activity other than borrowing Advances pursuant to this Agreement, acquiring and owning music assets and entering into Collateral Documents in connection therewith and entering into the Facility Documents and any other agreements contemplated by this Agreement, and such limited activities as are related or ancillary thereto as contemplated by its Constituent Documents, and shall not engage in any other activity or take any other action that would cause any Loan Party to be subject to U.S. federal, state or local income tax on a net basis.

&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)<u>Tax Matters</u>. Such Loan Party shall treat the Advances as debt for U.S. federal, state and local income and franchise tax purposes and will take no contrary position except to the extent that a "determination" is made within the meaning of Section 1313(a) of the Code (or an analogous provision of other Law) that the Advances may not be treated as debt for such purposes. Such Loan Party shall at all times maintain its status as a "disregarded entity" for U.S. federal income tax purposes and shall not elect to be classified as other than a "disregarded entity" for U.S. federal income tax purposes, nor shall such Loan Party take any other action or actions that would cause it to be classified, taxed or treated as a corporation for U.S. federal income tax purposes, including a taxable mortgage pool treated as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes (including transferring interests in the Loan Party on or through an established securities market or secondary market (or the substantial equivalent thereof), within the meaning of Section 7704(b) of the Code (and Treasury regulations thereunder)). Such Loan Party shall only have owners of Equity Interests that are treated as U.S. Persons and shall not be subject to any requirement to withhold tax with respect to payments or income allocable to its direct or indirect beneficial owners (including under Section 1446 of the Code). In the event that any Loan Party becomes classified as a partnership for federal income tax purposes, (i) the partnership representative (or comparable person under state or local law, as applicable) shall, to the extent eligible, make the election under Section 6221(b) of the Code (or any similar comparable provision of state or local tax law) with respect to such Loan Party and take any other action such as filings, disclosures and notifications necessary to effectuate such election, and (ii) if the election described in the preceding clause (i) is not available, the partnership representative (or comparable person under state or local law, as applicable) shall, to the extent eligible, make the election under Section 6226(a) of the Code (or any similar comparable provision of state or local tax law) with respect to such Loan Party and take any other action such as filings, disclosures and notifications necessary to effectuate such election. 

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&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)<u>Collections</u>. Such Loan Party shall cause and direct the Manager and each applicable Obligor to pay and deposit all Collections in respect of its assets directly to its respective Collection Account or to the Borrower Payment Account (or, solely with respect to any Non-Dollar Payments, the FX Aggregator Account). If for any reason such Loan Party, the Manager or any of their Affiliates otherwise receives any Collections, it shall cause such amounts to be deposited directly into the Borrower Payment Account (or such other account designated by the Administrative Agent, at the written direction of the related Loan Party) within two (2) Business Days following receipt and identification of the same. Any such Collections, for so long as they are in the possession of any Loan Party, the Manager or any of their Affiliates or any other Person, shall be held in trust for the benefit of the Secured Parties. Such Loan Party shall cause all Collections received in any Collection Account to be timely remitted to the Borrower Payment Account. Such Loan Party shall ensure that, except as expressly permitted hereunder, no Person other than the Collateral Agent shall have any Lien on, or any dominion or control of, any Borrower Account or any 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;(k)<u>Priority of Payments</u>. Such Loan Party shall ensure that all Collections and all other Distributable Cash is applied solely in accordance with the Priority of Payments and the other applicable provisions 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;(l)<u>Solvency</u>. After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, such Loan Party shall remain Solvent.

&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)<u>Insolvency Events</u>. Such Loan Party shall timely object to all proceedings of the type described in clause (a) of the definition of "Insolvency Event" instituted against 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;(n)<u>Performance and Compliance with Collateral Documents</u>. Such Loan Party shall deliver, or cause to be delivered to the Lenders (with copies to the Administrative Agent), copies of all proposed additional Collateral Documents and amendments thereto to which it is or will be a party, prior to its execution and delivery thereof, and shall promptly deliver duly executed copies of such documents upon its entry into the same. Such Loan Party shall, at its expense, timely and fully perform and comply with all provisions, covenants and other promises (if any) required to be observed by it under each Collateral Document, including by withdrawing or causing to be withdrawn amounts from the applicable Borrower Liability Reserve Account to pay any liabilities thereunder when the same become due and payable.

&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)<u>Appraisals</u>. Such Loan Party will obtain or cause to be obtained updated Appraisals from Approved Appraisers complying with the Appraisal Requirements for each relevant asset owned by such Loan Party, (i) on each Borrowing Date (solely with respect to each new asset being acquired concurrently with such Borrowing Date), (ii) from time to time as determined by the Manager in accordance with the Management Standard, to ensure that the related Appraisal Value for such asset reflects the reasonable fair value of such asset and is reasonably current (and in any event as of a date within the most recent Appraisal), it being understood that such Appraisal pursuant to this <u>clause (ii)</u> shall not replace such Loan Party's obligation to provide Appraisals otherwise required by this <u>clause (o)</u>, (iii) from time to time as the written request of the Required Lenders and (iv) in respect of the entire Facility Pool, as of each anniversary of the first Asset Acquisition Date (each Appraisal delivered pursuant to this <u>clause (iv)</u>, an "<u>Annual Catalogue Appraisal</u>"), delivered to the Lenders within six (6) weeks of each such anniversary and followed by a Variance Report in accordance with the requirements in <u>Section 5.01(r)</u> below; <u>provided</u>, that any Appraisal obtained pursuant to clause (iii) shall be done at the sole cost and expense of such requesting Lenders. The Lead Borrower may, in its sole discretion, engage one or more Approved Appraisers to perform not more than two additional Appraisals, in the aggregate, within sixty (60) days of the delivery of any Annual Catalogue Appraisal and, upon delivery of any such additional Appraisal, if so elected by the Lead Borrower, the Appraisal Value of the Facility Pool shall be the average of the Annual Catalogue Appraisal and all such additional Appraisals.

&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)<u>Hedging</u>. Within sixty (60) days of the occurrence of a Hedging Trigger Event, the Initial Borrower shall enter into and maintain one or more Hedging Agreements in form and substance reasonably satisfactory to the Required Lenders for the purpose of offsetting or mitigating the related interest rate risk associated with at least 70% but not more than 110% of the aggregate principal amount of the Advances outstanding as of any date with a term through the date described in clause (a) of the

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definition of "Final Maturity Date". Such Loan Party shall not enter into any other Hedging Agreements without the consent of all of the Lenders and in no event shall the Loan Parties be permitted to enter into any speculative hedges or similar positions.

&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)<u>Books and Records</u>. Such Loan Party shall maintain, or cause to be maintained on its behalf, proper and complete financial and accounting books and records.

&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)<u>Variance Reports</u>. Such Loan Party will obtain from the Manager a Variance Report: (i) with respect to any specific Artist Catalogue, as of the date that is twelve (12) months following the date of acquisition of such Artist Catalogue and (ii) with respect to all Artist Catalogues that have been owned by a Loan Party for more than twelve (12) months, the date of each Appraisal delivered pursuant to <u>Section 5.01(o)</u> above. The Manager shall deliver a copy of each Variance Report prepared in accordance with this <u>Section 5.01(r)</u> to each Lender on or prior to the earlier of the Reporting Date or the Borrowing Date next following the date of such report.

&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)<u>Excepted Earn-out Liabilities</u>. The Borrowers will pay any Excepted Earn-out Liabilities when due under any Asset Transfer Agreement and shall reserve for such Excepted Earn-out Liabilities out of Collections pursuant to <u>Section 9.03</u>.

**Section 5.02<u>Negative Covenants of the Loan Party</u>**. Each Loan Party covenants and agrees that, until the Final Maturity Date (and thereafter until the date that all Obligations have been paid in full in cash (other than contingent indemnity obligations not yet due and owing)):

&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>Restrictive Agreements</u>. It shall not enter into or suffer to exist or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Liquidation; Merger; Sale of Collateral</u>. It shall not consummate any plan of liquidation, dissolution, partial liquidation, merger or consolidation (or suffer any liquidation, dissolution or partial liquidation) nor engage in any Asset Sale or 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 in cash of the Obligations or a Permitted Release).

&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)<u>Amendments to Constituent Documents</u>. Without the written consent of the Administrative Agent (as directed in writing by the Required Lenders), it shall (x) not take any action inconsistent with its Constituent Documents or (y) amend or modify (i) any Bankruptcy Remote Provisions or (ii) any other provisions of its Constituent Documents if such amendment or modification of such other provisions would 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;(d)<u>ERISA</u>. Neither it nor any member of its ERISA Group shall incur any material liability with regard to a Plan or Multiemployer Plan (including any actual liability on account of a member of the ERISA Group) and it shall not permit its assets to be treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.

&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)<u>Liens</u>. 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 expressly permitted by this Agreement and the other 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;(f)<u>Margin Requirements</u>. 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.

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&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)<u>Restricted Payments</u>. 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; <u>provided</u>, <u>however</u>, that the Borrowers shall be permitted to make Restricted Payments in a manner consistent with and in compliance with this Agreement, so long as, as of the date of the release of such Restricted Payment, (i) no Event of Default or Unmatured Event of Default has occurred and is continuing and (ii) the LTV Ratio is less than or equal to 55.0%; <u>provided</u>, <u>further</u>, that the foregoing shall not limit the ability of the Borrowers to use funds released to the Borrowers pursuant to the Priority of Payments to acquire new Music Products in accordance with the terms 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;(h)<u>Changes to Filing Information</u>. It shall not change its name or jurisdiction of organization or cause or permit any other change that would cause the UCC information set forth in <u>Schedule 2</u> hereto to be inaccurate or incomplete, unless it gives written notice to each Agent (which may be through the delivery of an updated <u>Schedule 2</u>) no less than ten (10) Business Days prior to such change, and takes all actions necessary to protect and perfect a first priority perfected security interest in the Collateral in favor of the Collateral Agent (for the benefit of the Secured Parties), and shall promptly file appropriate amendments to all previously filed financing statements and continuation statements that are necessary to maintain or continue the perfection of the security interests of the Collateral Agent under this Agreement under each method of perfection required herein with respect to the Collateral (and shall provide copy of the same to each Agent). For the avoidance of doubt, neither Agent shall have any duty to confirm that the requirements under this <u>Section 5.02(h)</u> have been 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;(i)<u>Transactions with Affiliates</u>. 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 otherwise engage in any other transactions with, any of its Affiliates (such transaction, an "<u>Affiliate Transaction</u>"), except as expressly contemplated by this Agreement and the other Facility Documents, unless, in the case of any Affiliate that is not another Borrower, such Affiliate Transaction is upon terms no less favorable to such Borrower than it would obtain in a comparable arm's length transaction with a Person that is not an Affiliate (and, in making such determination, the Borrowers shall be entitled to rely on a fairness opinion is provided by a nationally recognized appraisal or investment banking firm with respect to such transaction).

&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)<u>Amendments to Certain Documents</u>. It shall not cause, enter into, permit or consent to any amendment, supplement or other modification to or any Administration Agreement, Music Agreement or Revenue-Generating Agreement except (i) with the consent of the Required Lenders or (ii) solely with respect to any such amendment, supplement or other modification to any Administration Agreement, Music Agreement or Revenue-Generating Agreement, as would not have a Material Adverse Effect on any Borrower or any Secured Party, as directed by the Manager in accordance with the Management Standard with prompt written notice thereof to the Required Lenders (with a copy to the Administrative Agent); <u>provided</u> that an amendment, supplement or other modification that alters the amount or timing of Collections shall not in itself be deemed to have such a Material Adverse Effect, so long as (x) an updated Appraisal is delivered in connection with such amendment, supplement or other modification and (y) no Manager Termination Event, Unmatured Event of Default or Event of Default shall result therefrom.

&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)<u>Investment Company Restriction</u>. 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Subject Laws</u>. It shall not utilize directly or indirectly the proceeds of any Advance for the benefit of any Person whose name appears on the List of Specially Designated Nationals and Blocked Persons maintained by OFAC, and shall maintain internal controls and procedures designed to ensure its continued compliance with the applicable provisions of the Subject 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;(m)<u>No Claims Against Advances</u>. 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.

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&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)<u>Indebtedness; Guarantees; Securities; Other Assets</u>. 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 pursuant to or as expressly permitted by this Agreement and the other Facility Documents and shall not accept any advances or incur other obligations, in each case, from any third party, secured by or in lieu of future Collections on the Music Products. It shall not acquire any assets except in compliance with this Agreement and the other Facility Documents, including <u>Section 2.02</u> 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;(o)<u>Validity of this Agreement</u>. It shall not (i) except as permitted by this Agreement, take any action that would permit the validity or effectiveness of this Agreement 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 permit any Person to be released from any covenants or obligations with respect to this Agreement and (ii) except as permitted by this Agreement, take any action that would permit the Lien of this Agreement not to constitute a valid first priority security interest in the Collateral in favor of the Collateral Agent (for the benefit of the Secured Parties and subject to 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;(p)<u>Subsidiaries.</u> It shall not have or permit the formation of any subsidiaries, except, in the case of the Borrowers and the Subsidiary Guarantors party 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;(q)<u>Employees.</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)<u>Non-Petition.</u> Such Loan Party shall not be party to any agreements under which it has any material obligations or liability (direct or contingent), other than the Facility Documents, Asset Transfer Agreements, Storage Facility Access Letters and Asset Payment Instructions, and use commercially reasonable efforts to include customary "non-petition" and "limited recourse" provisions in any agreement into which it enter into under which it has any material obligations or liability (and shall not amend or eliminate such provisions in any agreement to which it is party).

&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)[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;(t)<u>Accounts</u>. Such Loan Party shall not assign or grant an interest in any rights it may have in any Collection Account or any Borrower Account to any Person other than the Collateral Agent. Such Loan Party shall not at any time invest, or permit any investment of, the funds deposited in any Collection Account or any Borrower Account other than in Eligible Investments. Such Loan Party shall not close or agree to close any Collection Account, the Acquisition Account or any Borrower Account, or except as expressly provided herein with respect to Borrower Accounts, open or permit to be opened any new account in its name or in which any of its property will be deposited or held, without the prior written consent of the Administrative Agent (acting at the written direction of the Required 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;(u)<u>Sanctions</u>. Such Loan Party shall not, and will procure that its Affiliates and its directors, officers, employees, agents, and joint venture partners shall not: (a) use, directly or indirectly, all or any part of the proceeds of any borrowing for the purpose of funding, financing, or facilitating any activities, business or transaction of any Sanctioned Person or in any Sanctioned Country, in violation of Sanctions, or in any other manner that would result in violation of Sanctions applicable to any party hereto; and (b) fund, directly or indirectly, all or part of, any repayment under this Agreement out of proceeds derived from dealings with or property of a Sanctioned Person, in violation of Sanctions.

&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)<u>Anti-Corruption Laws</u>. None of: (a) any Loan Party, any Affiliate, or any of their respective directors, officers, or employees; and (b) to the knowledge of any Loan Party, any person acting on behalf of such Loan Party or any Affiliates of such Loan Party, shall directly or indirectly use all or any part of the proceeds of any Advance for any purpose in violation of any applicable laws, rules, or regulations pertaining to bribery or corruption ("<u>Anti-Corruption Laws</u>"), including the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act 2010, and any applicable Anti-Corruption Law.

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&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)<u>SPV Guarantor</u>. No SPV Guarantor shall own or possess any material assets other than (i) the equity interests of its related Borrower, (ii) solely with respect to the Initial SPV Guarantor, the Borrower Accounts and (ii) assets held on a temporary basis.

**Section 5.03<u>Certain Undertakings Relating to Separateness</u>**. (a) Without limiting any, and subject to all, other covenants of the Loan Parties contained in this Agreement, each Loan Party shall conduct its business and operations separate and apart from that of any other Person (other than another Loan Party, but including their other respective Affiliates) and in furtherance of the foregoing, each Loan Party shall comply with all requirements of its Constituent Documents and shall additionally:

&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 amend, restate, supplement or otherwise modify its Constituent Documents in violation of this Agreement or in any respect that would impair its ability to comply with 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;(ii)maintain separate books and records in a manner sufficient to permit the assets and liabilities of the Loan Parties to be readily identifiable and distinguishable from those 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;(iii)hold itself out to the public and all other Persons as a legal entity separate from 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;(iv)file its own tax returns as may be required under applicable law to the extent (A) not part of a consolidated group filing a consolidated return or (B) not treated as a division or disregarded entity for tax purposes of another taxpayer, and pay any Taxes so required to be paid under 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;(v)except as expressly permitted by the Facility Documents, not commingle its assets with those 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;(vi)conduct its own business in its own name and strictly comply with all organizational formalities to maintain its separate existence;

&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)pay its own liabilities out of its own funds and not hold out the credit or assets of any other Person as being able to satisfy its obligations (other than as required or permitted by this Agreement and the other 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;(viii)observe all organizational formalities required by Applicable Law and its 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;(ix)not hold out its credit or assets as being available to satisfy the obligations of any other Person (other than the other Loan Parties 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;(x)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;(xi)not incur any Indebtedness, secured or unsecured, direct or indirect, absolute or contingent, with any Affiliate other than another Loan Party;

&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)otherwise maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual asset or assets, as the case may be, from those of any Affiliate or any other Person; 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;(xiii)cause all Persons acting on its behalf to act at all times with respect to such Loan Party in a manner consistent with and in furtherance of the foregoing and in the best interests of such Loan Party.

&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 Loan Party shall ensure that it maintains at least one (1) Independent Director at all times, and further ensure that any actions relating to (x) the dissolution or liquidation of

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any Loan Party or (y) the initiation of, participation in, acquiescence in or consent to any of the events described in the definition of "Insolvency Event," in each case, are only taken with the prior written consent of such Independent Director (the foregoing clauses (x) and (y), collectively, the "<u>Independent Director Actions</u>"). No Loan Party (nor any Person acting on its behalf) shall remove or replace any such Independent Director except for cause in accordance with its respective Constituent Document, any such removal or replacement will be subject in all cases to the appointment of an eligible successor Independent Director, and no Independent Director shall be removed or replaced unless the Borrower provides the Required Lenders with no less than five (5) Business Days' prior written notice of (i) any proposed removal of such Independent Director, and (ii) the identity of the proposed replacement Independent Director, together with a written certification from a Responsible Officer of the Borrower that such replacement satisfies the requirements for an Independent Director as set forth in the definition thereof. Upon the occurrence of any death, disability, resignation or other event that causes any such Independent Director to cease to be able to perform the functions of an Independent Director or otherwise creates a vacancy in such position, the Loan Parties shall promptly (and in any event within two (2) Business Days) notify the Required Lenders thereof in writing, and as promptly as practicable appoint a successor Independent Director reasonably acceptable to the Required Lenders satisfying the definition of "Independent Director," as certified to the Required Lenders by a Responsible Officer of such Loan Party in writing; it being understood that no action requiring the consent of such Independent Director (including, without limitation, any Independent Director Action) may be taken with respect to such Loan Party unless and until such successor Independent Director has been duly appointed. No such Independent Director may at any time serve as a trustee in bankruptcy for any Loan Party, the Manager or any of their respective Affiliates. No Loan Party shall make any amendment or change to its Constituent Documents which amends or alters any provision applicable to the rights and duties of the Independent Director without the written consent of the Administrative Agent (at the written direction of the Required 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;(b)Each Loan Party hereby acknowledges that each Lender is entering into the transactions contemplated by this Agreement in reliance upon the credit of the Loan Parties as a separate credit group independent of their other Affiliates, and each Loan Party's identity as a legal entity that is separate from its Affiliates.

**Article VI<br>EVENTS OF DEFAULT**

**Section 6.01<u>Events of Default</u>**. "<u>Event of Default</u>," 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 judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&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)(i) a default in the payment when due of any principal of any Advance, (ii) a default, and such default shall continue unremedied for three (3) or more Business Days, in the payment when due of any interest on any Advance, or any other payment or deposit required to be made hereunder or under any other Facility Documents or (iii) the failure to reduce the outstanding Advances to $0 on the Final Maturity Date; 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)as of any Measurement Date, either (x) the DSCR is less than the Minimum DSCR or (y) the LTV Ratio is greater than the Maximum LTV Ratio, and in either case the Loan Parties shall have failed to cure such event as contemplated and to the extent permitted under <u>Section 6.03</u> for five (5) or more consecutive Business Days; 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)the Collateral Agent shall fail to have a first priority perfected security interest (for the benefit of the Secured Parties) in any material portion of the Collateral (subject to Permitted Liens), except with respect to any affirmative action taken by an Agent resulting in non-perfection; 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;(d)the failure of any representation or warranty of any Loan Party made in this Agreement, in any other Facility Document or in any certificate or other writing delivered pursuant hereto or thereto or in connection herewith or therewith to be correct in each case in all material respects when

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the same shall have been made (except to the extent any such representation or warranty is already qualified by materiality, in which case such representation and warranty shall be true and correct in all respects) and such failure shall remain uncured for a period in excess of thirty (30) days after the earlier of (x) written notice to the Loan Parties (which may be by email) by any Lender and (y) actual knowledge of a Responsible Officer of any Loan Party; <u>provided</u> that if such default or breach is reasonably susceptible of cure, but not within such thirty (30) day period, then the applicable Loan Party may be permitted up to an additional thirty (30) days to cure such default or breach in the manner provided in the Facility Documents provided that such Loan Party diligently and continuously pursues such cure; 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)a default in any material respect in the performance, or breach in any material respect, of any other covenant or other agreement of any Loan Party under this Agreement or the other Facility Documents and the continuation of such default or breach for a period of thirty (30) days after the earlier of (x) written notice to the Loan Parties (which may be by email) by any Lender and (y) actual knowledge of a Responsible Officer of any Loan Party; <u>provided</u> that if such breach is reasonably susceptible of cure, but not within such thirty (30) day period, then the applicable Loan Party may be permitted up to an additional thirty (30) days to cure such default or breach in the manner provided in the Facility Documents provided that such Loan Party diligently and continuously pursues such cure; 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 default in the performance or breach of any of the covenants set forth in <u>Section 2.02</u>, <u>5.01(a)(ii)</u>, <u>5.01(b)</u>, <u>5.01(i)</u>, <u>5.01(n)</u>, <u>5.01(o)</u>, <u>5.02</u>, <u>5.03(a)(i)</u> or <u>8.04</u> of this Agreement; provided, however, that if such default or breach is curable and the Administrative Agent (as directed in writing and determined by the Required Lenders in their sole and absolute discretion), shall have given notice to the Borrowers to cure such default or breach, failure to cure such default or breach within ten (10) days following such notice to the Borrowers; 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;(g)one or more enforceable judgments, orders or decrees for the payment of an amount exceeding $1,000,000 or adverse rulings (not fully paid or covered by insurance) shall be rendered against any Loan Party or the Manager (which, in the case of the Manager, exceeds $5,000,000 in the aggregate in uninsured liabilities and would otherwise reasonably be expected to have a Material Adverse Effect on such Person) and with respect to which such Person has knowledge (or should have knowledge) and such judgment or ruling shall remain unsatisfied, unvacated, unbonded or unstayed for a period in excess of sixty (60) days; 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;(h)an Insolvency Event relating to any Loan Party or the Manager shall have occurred; 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)the Management Agreement fails to be in place or is otherwise terminated and the Borrowers fail to appoint a replacement manager acceptable to the Required Lenders within thirty (30) days following the date of such default, occurrence, failure or termination; 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;(j)a Change of Control shall have occurred without the consent of the Required Lenders; 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;(k)any Loan Party becomes treated as an association taxable as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes; 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;(l)any Loan Party becomes an investment company required to be registered under the Investment Company Act; 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;(m)(i) any Facility Document (other than an Administration Agreement, Music Agreement or Revenue-Generating Agreement) shall (except in accordance with its terms) terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of any Loan Party or the Manager, as applicable, or (ii) any Loan Party or the Manager shall contest in any manner the effectiveness, validity, binding nature or enforceability of any Facility Document or any Lien purported to be created thereunder; 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;(n)as of any date of determination, one or more Revenue-Generating Agreement(s) that, either individually or in the aggregate, represent an Appraisal Value that would exceed five percent

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(5%) of the Aggregate Collateral Value, during the ninety (90) day period immediately prior to such date, shall terminate or cease to create an enforceable obligation against the related Obligor(s), or any Obligor(s) so assert(s) in writing, and no Revenue-Generating Agreement Cure has occurred within sixty (60) days following such date of determination, and the foregoing would be reasonably expected to result in a Material Adverse Effect.

**Section 6.02<u>Remedies upon an Event of Default</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)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, the Administrative Agent, solely at the written direction of the Required Lenders, by notice to the Borrowers, shall declare the principal of and the accrued interest on the Advances and all other amounts whatsoever payable by the Borrowers 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 each Borrower; <u>provided</u> that, upon the occurrence of any Event of Default described in <u>Section 6.01(h)</u>, the Advances and all such other amounts shall automatically become due and payable, without any further action by any party.

&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)Upon the occurrence and during the continuation of an Event of Default, following written notice by the Administrative Agent (provided solely at the direction of the Required Lenders) of the exercise of control rights with respect to the Collateral pursuant to and in accordance with the UCC, the Borrowers will sell or otherwise dispose of all or any of their assets to repay the Obligations as directed by the Administrative Agent (at the written direction of the Required Lenders), <u>provided</u> that any such sale or other disposition directed by the Administrative Agent (acting at the written direction of the Required Lenders) shall be on commercially reasonable terms. The proceeds of any such sale or disposition shall be applied 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;(c)The Required Lenders hereby agree that they shall not direct the Administrative Agent or the Collateral Agent to give any notice of exclusive control, default notice or other similar notice under any Facility Document unless an Event of Default shall have occurred and is continuing. Following the waiver of any Event of Default in accordance with the terms hereof, and subject to the satisfaction of the terms and conditions specified in such waiver (if any), the Required Lenders agree to promptly direct the Administrative Agent and the Collateral Agent in writing to notify the recipient of any such notice of exclusive control, default notice or other similar notice that it is withdrawing such notice previously delivered in connection with such Event of Default 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;(d)For the purpose of enabling each Agent to exercise rights and remedies under this Agreement at such time as such Agent shall be lawfully entitled to exercise such rights and remedies, each Borrower hereby grants to each Agent an irrevocable non-exclusive license (exercisable without payment of royalty or other compensation to any Borrower), to use, license or sublicense (to the extent permitted under any IP License) any of the Collateral consisting of Intellectual Property now owned or hereafter acquired by such Borrower, and including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. The use of such license by an Agent may be exercised only upon the occurrence and during the continuation of an Event of Default and only in connection with the operations and business of such Borrowers; <u>provided</u> that (i) any license, sublicense or other transaction entered into by any such Agent in accordance herewith shall be binding upon each Borrower notwithstanding any subsequent cure of an Event of Default and (ii) each Agent shall only exercise the use of any such license upon the written direction of the Required 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;(e)In advance of the direct receipt by the Collateral Agent of any proceeds from the Collateral, the Collateral Agent, at the written direction of the Required Lenders, shall establish a segregated interest bearing trust account which shall be designated as the "<u>Collateral Proceeds Account</u>." The only permitted withdrawals from or application of funds on deposit in, or otherwise to the credit of, the Collateral Proceeds Account shall be to pay the amounts specified herein and in accordance with the Priority of Payments in accordance with the direction of the Administrative Agent (acting at the written direction of the Required Lenders). The Borrowers shall not have any legal, equitable or beneficial

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interest in the Collateral Proceeds Account other than in accordance with the Priority of Payments. Funds in the Collateral Proceeds Account shall be invested in Eligible Investments as directed in writing by the Administrative Agent (acting at the written direction of the Required Lenders). In the absence of any such written direction, amounts on deposit in the Collateral Proceeds Account shall remain uninvested.

**Section 6.03Permitted Contributions.** 

&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 Borrowers may from time to time accept Cash contributions in respect of their Equity Interests (but in no event shall any Person be obligated to make any such Cash contributions), and subject to <u>Section 6.03(b)</u> below, to the extent such Cash contributions are deposited in a Restricted Borrower Account and written certification from a Responsible Officer of each Borrower confirming receipt thereof has been delivered to the Approved Account Bank, may be applied as Distributable Cash in accordance with the Priority of Payments. Except with respect to Permitted Cure Contributions to the extent set forth in <u>Section 6.03(b)</u> below, no such Cash contributions shall be included or otherwise taken into account in the calculation of Net Cash Flow or any LTV Ratio.

&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 Borrowers may (but are not required to), upon delivery of written certification from a Responsible Officer of each Borrower to the Administrative Agent at least five (5) Business Days' prior, designate all or a portion of any such Cash contributions as (i) a cure contribution that increases the amount of Collections and Net Cash Flow for the Collection Period during which such contributions were made by the Dollar amount of such contribution, which contribution shall accordingly improve the DSCR for such Collection Period and be applied as Distributable Cash on the following Payment Date (each, an "<u>DSCR Cure Contribution</u>"), (ii) a cure contribution that will be retained in the Cure Contribution Holding Account and increase the Aggregate Collateral Value by an amount equal to the Dollar amount of such contribution, and accordingly improve the LTV Ratio for each Measurement Date until the Payment Date until such amounts are released pursuant to <u>Section 9.02</u> or at the direction of the Borrowers for so long as no Manager Termination Event, Unmatured Event of Default or Event of Default has occurred and is continuing or would result therefrom, for application as Distributable Cash (each, a "<u>LTV Cure Contribution</u>") or (iii) a cure contribution that will be applied in connection with an Optional Prepayment (subject to the payment of any related fees pursuant to the Lender Fee Letter and the BNY Fee Schedule), in order to reduce the aggregate outstanding principal amount of the Advances (and interest expected to accrue thereon), and accordingly improve the LTV Ratio and the DSCR through such prepayment of Advances (a "<u>Prepayment Cure Contribution</u>" and, together with the DSCR Cure Coverage Contribution and the LTV Cure Contributions, "<u>Permitted Cure Contributions</u>"); <u>provided</u> that: (A) the Borrowers may only designate one type of Permitted Cure Contribution for the related cash or portion thereof being contributed; (B) no more than two (2) Permitted Cure Contributions may be made in the same calendar year; and (C) no more than six (6) Permitted Cure Contributions may be made during the term of this Agreement.

**Article VII<br>PLEDGE OF COLLATERAL; RIGHTS OF THE AGENTS**

**Section 7.01<u>Grant of Security</u>**. (a) Each Loan Party 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 first priority security interest in, and a Lien upon, all of its right, title and interest in, to and under, all of its assets and property, in each case whether tangible or intangible, wheresoever located, and whether now owned by it or hereafter acquired and whether now existing or hereafter coming into existence, including each of the following (all of the property described in this <u>Section 7.01(a)</u> being collectively referred to herein as the "<u>Collateral</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)in the case of each Borrower, the Equity Interests in its respective Subsidiary Guarantors and in the case of each SPV Guarantor, the Equity Interest in its respective 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;(ii)all Intellectual Property and all IP Licenses, but excluding (A) any intent-to-use Trademark application prior to the filing and acceptance of a "Statement of Use" or an "Amendment to Allege Use" with respect thereto, to the extent, if any, and solely during the

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period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration issuing from such intent-to-use application under applicable federal Law and (B) any IP License if the grant of a security interest therein would cause the applicable Loan Party to be in breach of the IP License, or if it would result in the loss, termination or impairment of any rights of the Loan Party in the licensed intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Asset Files, Master Recordings, Musical Compositions, Inventory, Music Products, Music Product Rights, Music Publishing and Master Distribution Rights and all rights to access or otherwise with respect to Storage Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Asset Agreements and all other Collateral Documents (and all rights, remedies, powers, privileges and claims thereunder or in respect thereto, whether arising pursuant to the terms thereof or otherwise available at law or equity, including the right to enforce each such Collateral Document, both now and hereafter owned), including all Collections, insurance policies, insurance rights and other Proceeds thereon or with respect thereto and all interest, dividends, distributions and other Money or property of any kind distributed in respect of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)each Borrower Account and each Collection Account, and all Cash and other property on deposit therein or credited 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)each Facility Document (other than this Agreement) and all rights, remedies, powers, privileges and claims thereunder or in respect thereto (whether arising pursuant to the terms thereof or otherwise available 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 such Loan Party could but for the collateral assignment and security interest granted to the Collateral Agent (for the benefit of the Secured Parties) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)all right, title and interest of such Loan Party in any and all Hedging Agreements and the transactions contemplated thereunder, and any and all present and future amounts payable by a Hedge Counterparty to such Loan Party under or in connection with its respective Hedging Agreement and the transactions contemplated 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;(viii)all rights to payment under all servicer contracts and other contracts and agreements associated with the Collections and all rights of recourse relating 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)all accounts, chattel paper (including electronic chattel paper), deposit accounts, securities accounts, security entitlements, financial assets, payment intangibles, general intangibles, instruments, investment property, letter-of-credit rights and other supporting obligations relating or credited to the foregoing (in each case as defined in the UCC), commercial tort claims and all other property of any type or nature in which such Loan Party has an interest, whether tangible or intangible, and all other property of each Loan Party which is delivered to the Collateral Agent by or on behalf of the Loan Party (whether in compliance with the Asset Acquisition Procedures or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)all other general intangibles and payment intangibles of such Loan Party, including all general intangibles of such Loan Party which are delivered to the Collateral Agent (or any custodian on its behalf) by or on behalf of such Loan Party or held by any Person by or on behalf of such Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)all security interests, Liens, collateral, property, equipment, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)all Proceeds of any and all of the foregoing.

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&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 terms used in this <u>Section 7.0</u>1 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. Each Loan Party hereby designates each Agent as its agent and attorney in fact to file any UCC financing statement, continuation statement and all other instruments, and to take any other actions contemplated by this <u>Article VII</u>; <u>provided</u> that such designation shall not impose upon any Agent any such obligations, or release or diminish in any respect any Loan Party's obligations in respect thereof, and provided further, that no such Agent shall file any such documents or take any such actions other than at the written direction of Required Lenders. Each Loan Party further hereby authorizes the Loan Party's counsel to file, without such Loan Party's signature, UCC financing statements that name such Loan Party as debtor and the Collateral Agent as secured party (for the benefit of the Secured Parties) and that describe 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. Each Loan Party authorizes the UCC financing statement naming such Loan Party as debtor to describe the Collateral therein as "all assets" or words of similar import.

**Section 7.02<u>Intellectual Property</u>**. Each Loan Party covenants 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;(a)On each applicable Asset Acquisition Date, such Loan Party shall sign and deliver to the Lenders and the Agents (to the extent not previously so delivered), Intellectual Property Security Agreements with respect to all Intellectual Property owned or being acquired by such Loan Party. Such Loan Party shall promptly notify the Agents if it knows that any application or registration relating to any Registered Intellectual Property may become abandoned or dedicated to the public domain, or if it knows of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court or tribunal in any country) regarding such Loan Party's ownership of such Registered Intellectual Property or its right to register the same or to keep and maintain the same.

&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)Whenever a Loan Party, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any Copyright, Patent or Trademark with the United States Copyright Office, the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, such Loan Party shall report such filing to the Administrative Agent on or before the next Reporting Date. Upon request of the Administrative Agent, such Loan Party shall execute and deliver an Intellectual Property Security Agreement and any and all other agreements, instruments, documents, and papers as the Administrative Agent may reasonably request to evidence the Collateral Agent's and the other Secured Parties' security interest in such Intellectual Property and the goodwill and general intangibles of such Loan Party relating thereto or represented thereby, and such Loan Party hereby constitutes each Agent its attorney-in-fact to execute and file all such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed subject to the terms of <u>Section 7.01(b)</u>; such power being coupled with an interest is irrevocable until this Agreement is terminated.

&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)Such Loan Party shall take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Copyright Office, the United States Patent and Trademark Office, and including filing of applications for renewal, affidavits of use and affidavits of incontestability, to maintain and pursue each material application (and to obtain the relevant registration) and to maintain all material Registered Intellectual Property.

&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 event that any Loan Party obtains knowledge that any Copyright, Patent, Trademark or other material Intellectual Property included in the Collateral is infringed, misappropriated or diluted by a third party, such Loan Party shall promptly notify each Agent after it learns thereof and shall, unless inconsistent with such Loan Party's usual business practice, promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution, or take such other actions as such Loan Party shall reasonably deem appropriate under the circumstances to protect such Copyright, Patent, Trademark or other material Intellectual Property.

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&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)Upon and during the continuance of an Event of Default, (i) no Loan Party shall abandon or otherwise permit any Registered Intellectual Property to become invalid or otherwise terminated (other than by expiration) and (ii) each Loan Party shall use its commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of each IP License that constitutes Collateral owned by such Loan Party to effect the assignment of all such Loan Party's right, title and interest thereunder to the Collateral Agent (for the benefit of the Secured Parties) or such other Person as may be designated by the Administrative Agent (at the written direction of the Required 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;(f)Each Loan Party shall, at its expense, promptly deliver to each Agent a copy of each notice or other communication received by it by which any other party to any IP License (i) declares a default by a Loan Party thereunder, (ii) terminates or threatens in writing to terminate such IP License or (iii) purports to exercise any of its rights, together with a copy of any reply by such Loan Party 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;(g)Each Loan Party shall duly perform and observe in all material respects all of its obligations under each IP License and shall take all action necessary to maintain each IP License in full force and effect. No Loan Party shall, without the prior written consent of the affected Agent or Secured Party (or any such Agent acting at the written direction of the Required Lenders), cancel, terminate, amend or otherwise modify in any respect, or waive any provision of, any IP License in any manner that could reasonably be expected materially and adversely to affect the rights and remedies of any Agent or any other Secured Party under this Agreement or any other Facility Document or the ability of the other Secured Parties to exercise the same.

**Section 7.03<u>Release of Security Interest upon Final Payment</u>**. If (x) all Obligations have been paid in full in cash and (y) all Hedging Agreements with Secured Hedge Counterparties have expired or have been terminated and any all termination amounts arising therefrom shall be paid in full in cash (or other arrangements satisfactory to the applicable Secured Hedge Counterparty have been made), the Agents (for themselves and on behalf of the other Secured Parties) shall, at the expense of the Loan Parties, promptly execute, deliver and file or authorize for filing such instruments as the Loan Parties shall reasonably direct in writing and prepare in order to reassign, release or terminate the Secured Parties' security interest in the Collateral, which release shall constitute a Permitted Release under <u>Section 8.04</u>.

**Section 7.04<u>Rights and Remedies</u>**. 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 shall (solely upon written direction by the Required Lenders, which direction shall include, without limitation (a) the time, method, form and scope of such remedy, (b) voting and/or consent instructions and (c) method of disposition and the identity of any and all agents to be engaged in connection therewith), among other remedies: (i) instruct any Loan Party (or the Manager, as applicable) to deliver any or all of the Collateral, the Collateral Documents and any other documents relating to the Collateral to the Collateral Agent or to another Person designated by the Required Lenders, and otherwise give all instructions for each Loan Party 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 Collateral 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 each Loan Party's rights and remedies with respect to the Collateral; (vii) institute or prosecute legal and equitable proceedings to enforce collection of, or realize upon, any of the Collateral; (viii) require that each Loan Party 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 Facility Documents; (ix) redeem or withdraw or cause any Loan Party to redeem or withdraw any asset of such Loan Party to pay amounts due and payable in respect of the Obligations; (x) make copies of or, if necessary, remove from any Loan Party's, the Manager's and their respective agents' place of business all books, records and documents relating to the Collateral; and (xi) endorse the name of any Loan Party upon any items of payment relating to the Collateral or upon any proof of claim in bankruptcy against an Obligor. The proceeds of any sale or disposition of the Collateral shall be applied in accordance with the Priority of Payments.

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Each Loan Party hereby agrees that, upon the occurrence and during the continuance of an Event of Default, at the request of any Agent or the Required Lenders, it shall execute all documents and agreements which are reasonably necessary or appropriate to have the Collateral to be assigned to the Collateral Agent (for the benefit of the Secured Parties) or to another Person designated by the Administrative Agent (at the written direction of the Required Lenders). For purposes of taking the actions described in the paragraph above, each Loan Party hereby irrevocably appoints each 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 such Agent or in the name of such Loan Party or otherwise, for the use and benefit of the Secured Parties, but at the cost and expense of the Loan Parties and, except as prohibited by Applicable Law, without notice to any Loan Party.

**Section 7.05<u>Remedies Cumulative</u>**. 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 any Agent 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; <u>provided</u>, <u>however</u>, that no Secured Party may exercise any rights or remedies hereunder other than through the Collateral Agent (as directed in writing by the Required Lenders and subject to the terms of this Agreement) or as consented to by the Required Lenders; <u>provided, further</u>, however, that the Required Lenders may exercise any rights and remedies hereunder if, after directing the Collateral Agent in writing, the Collateral Agent does not comply with such instructions for any reason.

**Section 7.06<u>Collateral Documents</u>**. (a) Each Loan Party hereby agrees that, after the occurrence and during the continuance of an Event of Default it shall (i) upon the written request of any Agent, promptly forward to each Agent all material information and notices which it receives under or in connection with the Collateral Documents, and (ii) upon the written request of any Agent, act and refrain from acting in respect of any request, act, decision or vote under or in connection with the Collateral Documents only in accordance with the direction of the Administrative Agent or the Collateral Agent (each as directed in writing by the Required Lenders). Without limiting the foregoing, each Loan Party hereby further agrees that each Agent may, and hereby authorizes each Agent to, in its name and stead, following the occurrence and during the continuance of an Event of Default, instruct applicable Obligors and otherwise cause any and all Collections in respect of such Loan Party's assets to be paid directly to one or more accounts designated by such 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;(a)Each Loan Party agrees that, to the extent the same shall be in such Loan Party's possession, it will hold all Collateral Documents and other documents relating to the Collateral in trust for the Collateral Agent on behalf of the Secured Parties (and shall cause the Manager and any other Person holding such documents on its behalf to do the same), and upon request of any Agent or 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 to another Person designated by the Administrative Agent (at the written direction of the Required Lenders).

**Section 7.07<u>Loan Party Remains Liable</u>**. (a) Notwithstanding anything herein to the contrary, (i) each Loan Party shall remain liable under the contracts and agreements included in and relating to the Collateral (including the Collateral 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 any Loan Party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No obligation or liability of any Loan Party is intended to be assumed by any Agent or any other Secured Party under or as a result of this Agreement or the other Facility Documents, and the transactions contemplated hereby and thereby, including under any Collateral Document or any

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other agreement or document that relates to Collateral and, to the maximum extent permitted under provisions of law, the Agents and the other Secured Parties expressly disclaim any such assumption.

**Section 7.08<u>Protection of Collateral</u>**. Each Loan Party shall from time to time execute and deliver, or caused to be executed and delivered, all such supplements and amendments hereto and file or authorize the filing of all such UCC financing statements, continuation statements, 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;&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;&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 or any other Facility Document including the first priority nature of the lien or 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;&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 or regulations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;&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;&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.

Each Loan Party hereby designates each Agent as its agent and attorney in fact to file any UCC financing statement, continuation statement and all other instruments, and take all other actions required pursuant to this Section; <u>provided</u> that such designation shall not impose upon any Agent any such obligations, or release or diminish in any respect any Loan Party's obligations in respect thereof, and provided further, that no such Agent shall file any such documents or take any such actions other than at the written direction of the Required Lenders. Subject to the foregoing proviso, each Loan Party hereby further authorizes such Loan Party's counsel to file, without such Loan Party's signature, UCC financing statements that names such Loan Party as debtor and the Collateral Agent as secured party (for the benefit of the Secured Parties) and that describes "all assets in which the debtor now or hereafter has rights" or words of similar import 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 8.01<u>Collection of Money</u>**. Except as otherwise expressly provided herein, the Collateral Agent shall (acting solely at the written direction of the Required Lenders) demand payment or delivery of, and shall receive and 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 in the Collateral Proceeds Account and property received by it in accordance with this Agreement for the Secured Parties and shall apply it as provided in this Agreement.

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**Section 8.02<u>Borrower Accounts</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)<u>Borrower Payment Account</u>. The Initial SPV Guarantor shall on or prior to the initial Borrowing Date hereunder establish at an Approved Account Bank a securities account (or a linked deposit account and securities account) in the name of the Initial SPV Guarantor, which shall be designated as a "Borrower Payment Account" (all such accounts, collectively, the "<u>Borrower Payment Account</u>"), which shall be maintained with such Approved Account Bank in accordance with the related Account Control Agreement and which shall be subject to the Lien of the Collateral Agent (for the benefit of the Secured Parties). The Borrowers shall direct the Manager to cause all Collections received in any Collection Account denominated (i) in Dollars to be promptly remitted to the Borrower Payment Account, and in any event by no later than the fifth (5<sup>th</sup>) Business Day following the calendar month in which such Collections were received, and (ii) in a currency other than Dollars to be promptly remitted to the FX Aggregator Account and to be transferred from there to the Borrower Payment Account by no later than the fifth (5<sup>th</sup>) Business Day following the calendar month in which such Collections were received. All property deposited from time to time in the Borrower Payment Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral and shall only be withdrawn for application as Distributable Cash in accordance with the Priority of Payments on each Payment Date. All amounts on deposit in the Borrower Payment Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required 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;(b)<u>Borrower Interest Reserve Account</u>. The Initial SPV Guarantor shall, on or prior to the initial Borrowing Date hereunder, establish at an Approved Account Bank a securities account (or a linked deposit account and securities account) in the name of the Initial SPV Guarantor, which shall be designated as the "Borrower Interest Reserve Account" (all such accounts, collectively, the "<u>Borrower Interest Reserve Account</u>"), which shall be maintained with such Approved Account Bank in accordance with the related Account Control Agreement and which shall be subject to the Lien of the Collateral Agent. On the initial Borrowing Date, from the proceeds of such Borrowing or otherwise, the Borrowers shall cause to be deposited in the Borrower Interest Reserve Account an amount sufficient to cause the amounts on deposit therein to be equal to the Interest Reserve Required Amount, and additional amounts shall be deposited into the Borrower Interest Reserve Account to the extent required pursuant to the Priority of Payments on each Payment Date. All property deposited from time to time in the Borrower Interest Reserve Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral and shall only be withdrawn for application as Distributable Cash in accordance with the Priority of Payments on each Payment Date. All amounts on deposit in the Borrower Interest Reserve Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required 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;(c)<u>Borrower Liability Reserve Accounts</u>. The applicable Borrower shall, on or prior to the related Asset Acquisition Date, establish at an Approved Account Bank a Borrower Liability Reserve Account in the name of such Borrower for the purpose of reserving for any Borrower liabilities that are required to be reserved for pursuant to the Asset Acquisition Procedures. Each such Borrower Liability Reserve Account shall be maintained at an Approved Account Bank in accordance with the related springing Account Control Agreement and shall be subject to the Lien of the Collateral Agent. The Borrowers shall fund or cause to be funded each such Borrower Liability Reserve Account, from funds previously released to the Borrowers pursuant to the Priority of Payments or from other non-Collateral funds available to the Borrowers, in the amount required under the Asset Acquisition Procedures by no later than the related Asset Acquisition Date; <u>provided</u> that, solely with respect to any Excepted Earn-out Liabilities arising under any Asset Transfer Agreements, the Borrowers may fund such liabilities out of the proceeds of the Advances borrowed in connection with the related acquisition of assets. Such amounts and all other property deposited from time to time in any Borrower Liability Reserve Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral. The Borrowers (or the Manager on their behalf) (i) shall withdraw amounts from each such Borrower Liability Reserve Account from time to time to pay the

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associated liabilities reserved for in accordance with <u>Section 5.01(n)</u>, and (ii) may, to the extent of any other permanent reduction or termination in the amount of the associated liabilities being reserved for in any such Borrower Liability Reserve Account, as certified by the Manager on behalf of the Borrowers to the Agents, withdraw an amount corresponding to such reduction or termination and deposit such amounts as Collections in the Borrower Payment Account, for application in accordance with the Priority of Payments (without any duplication) on the following Payment Date. With respect to any Borrower Liability Reserve Account that constitutes a securities account, amounts on deposit in such Borrower Liability Reserve Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required Lenders). Amounts on deposit in any Borrower Liability Reserve Account that constitutes a deposit account shall remain uninvested.

&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)<u>Acquisition Account</u>. The Initial SPV Guarantor shall, on or prior to the initial Borrowing Date hereunder, establish at an Approved Account Bank a securities account (or a linked deposit account and securities account) in the name of the Initial SPV Guarantor, designated as the "Acquisition Account" (all such accounts, collectively, the "<u>Acquisition Account</u>"), into which the proceeds of all Advances shall be made on their related Borrowing Dates. The Borrowers shall procure that the Acquisition Account shall not be changed or moved to another Approved Account Bank without the prior written consent of the Administrative Agent (acting at the written direction of the Required 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;(e)<u>FX Aggregator Account</u>. The Initial SPV Guarantor shall, on or prior to the acquisition of any Collateral consisting of Non-Dollar Payments, establish at an Approved Account Bank a currency aggregator account in the name of the Initial SPV Guarantor, designated as the "FX Aggregator Account" (all such accounts, collectively, the "<u>FX Aggregator Account</u>"), into which all Non-Dollar Payments shall be made, and all such Non-Dollar Payments shall be converted into Dollars at the applicable spot rate at the time of such deposit into the FX Aggregator Account. The Borrowers shall direct the Manager to cause all amounts on deposit in the FX Aggregator Account to be deposited into the Borrower Payment Account by no later than the fifth (5<sup>th</sup>) Business Day following the calendar month in which such Collections were received.

&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)<u>Other Borrower Accounts; Borrower Accounts Generally</u>. The Borrowers may from time to time establish additional Borrower Accounts (i) as a Restricted Borrower Account to reserve for any specific Obligations required to be paid pursuant to the Priority of Payments on a subsequent Payment Date, as contemplated by this Agreement or the other Facility Documents or (ii) with the prior written consent of the Required Lenders. Each such Borrower Account shall be maintained at an Approved Account Bank in accordance with the related Account Control Agreement and shall be subject to the Lien of the Collateral Agent. All property deposited from time to time in any such Borrower Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral. Amounts on deposit in (A) any Managed Borrower Account may be withdrawn or distributed by any Borrower (or the Manager on behalf of any Borrower) for so long as no Manager Termination Event or Event of Default has occurred and continuing, (B) any Restricted Borrower Account may only be withdrawn for application in accordance with the Priority of Payments on the applicable Payment Date in accordance with the related Periodic Report, or as otherwise consented to by the Required Lenders in writing, and (C) any additional Borrower Account established from time to time may only be withdrawn under the terms, conditions and circumstances specified by the Administrative Agent (at the written direction of the Required Lenders) in connection with the establishment thereof. With respect to any Borrower Account that constitutes a securities account, amounts on deposit in such Borrower Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless a Manager Termination Event or an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required Lenders). Amounts on deposit in any Borrower Account that constitutes an interest bearing deposit account shall remain uninvested.

**Section 8.03<u>Periodic Report; Accountings</u>**. The Borrowers shall provide (or cause to be compiled and provided) to the Agents (upon receipt of which, the Administrative Agent shall promptly

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deliver a copy of the same to each Lender) a report (each, a "<u>Periodic Report</u>") by no later than 1:00 p.m. on each Reporting Date, with respect to the Collection Period most recently ended and as of the related Determination Date. Each such Periodic Report shall contain the information contemplated by <u>Schedule 3</u> hereto, and shall be delivered together with a written certification from a Responsible Officer of each Borrower which describes, in such detail as the Administrative Agent (at the written direction of the Required Lenders) shall reasonably require, with respect to each Borrower, all registrations and applications to register any Intellectual Property with the U.S. Patent and Trademark Office, the U.S. Copyright Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, as applicable, that were made, filed or obtained by such Borrower since the prior Reporting Date.

**Section 8.04<u>Permitted Releases</u>**. (a) Collateral may be released, in whole or in part, from the Collateral Agent's Lien, subject to compliance with the provisions of this <u>Section 8.04</u>, in the following cases (each, a "<u>Permitted Release</u>"): (i) Cash distributions released to the Borrowers in accordance with the Priority of Payments, (ii) upon payment in full in cash of the Obligations as contemplated in <u>Section 7.03</u>, (iii) in connection with the exercise of remedies by the Agents, (iv) in connection with any sale, disposition or other transfer of any asset or assets permitted hereunder of any Borrower (including any partial sales of any Music Products), subject to the related Approved Account Bank's receipt of the Mandatory Prepayment Amount and payment of any amounts required pursuant to <u>Section 2.12</u> and (v) to the extent consented to in writing by the Required 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;(a)Each such Permitted Release shall be without recourse, representation or warranty to or on the part of each Borrower that remains party to this Agreement after giving effect to such Permitted Release, unless the Required Lenders have otherwise consented in writing.

&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)Each Permitted Release contemplated by <u>Section 8.04(a)(i)</u>, <u>(ii)</u> and <u>(iii</u>) shall be automatic and require no further action by 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;(c)Each Permitted Release contemplated by <u>Section 8.04(a)(iv)</u> shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 prior delivery of a Release Request by the Lead Borrower (or the Manager on its behalf), duly executed and delivered by the parties thereto, accompanied 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)(A) if no Manager Termination Event or Event of Default has occurred and is continuing prior to such Permitted Release, a certificate of a Responsible Officer of such Borrower, certifying (1) that such Permitted Release is permitted under the Facility Documents and this <u>Section 8.04(d)</u>, (2) the amount of the applicable Release Proceeds and setting forth the calculation thereof (and the Lenders hereby authorize and direct the Administrative Agent to rely on such certificate in performing its obligations under this Section 8.04(d)), (3) that on a *pro forma* basis after giving effect to such Permitted Release and application of the Mandatory Prepayment Amount in accordance with the Priority of Payments, no such event shall have occurred and be continuing, (4) after giving effect to such Release Request, that the Acquisition/Disposition LTV Ratio on a *pro forma* basis after giving effect to such Permitted Release shall be maintained or improved and (5) the Aggregate Collateral Value on a *pro forma* basis after giving effect to such Permitted Release and setting forth the calculation thereof, 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)(B) if a Manager Termination Event, Event of Default or Unmatured Event of Default has occurred and is continuing prior to such Permitted Release,

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) prior written consent of the Required Lenders and (2) a certificate of a Responsible Officer of such Borrower, certifying (a) that such Permitted Release is permitted under the Facility Documents and this <u>Section 8.04(d)</u>, (b) the amount of the applicable Release Proceeds and setting forth the calculation thereof (and the Lenders hereby authorize and direct the Administrative Agent to rely on such certificate in performing its obligations under this <u>Section 8.04(d)</u>), (c) on a *pro forma* basis after giving effect to such Permitted Release and the related concurrent Optional Prepayment (which may provide for prepayments of Advances in excess of the related Release Proceeds (or Minimum Release Price)), that no Manager Termination Event or Event of Default shall have occurred and be continuing and (d) the Aggregate Collateral Value on a *pro forma* basis after giving effect to such Permitted Release and setting forth the calculation 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)the consummation of such related concurrent Optional Prepayment (including the payment of (x) all required principal payments in respect of the Advances and (y) all breakage and termination payments under any Hedging Agreements being unwound in accordance with <u>Section 8.04(d)(iv)</u>, and the concurrent payment of any amounts senior to such principal payments in accordance with the Priority of Payments or the establishment of appropriate reserves therefor as provided for in <u>Section 2.07(a)</u>), the payment of any related fees contemplated in the Lender Fee Letter and the BNY Fee Schedule, and the satisfaction of any other applicable conditions precedent to such Permitted Release as specified by the Required 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)a written confirmation from the Administrative Agent (at the written direction of the Required Lenders) that such Permitted Release is effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Release Proceeds, together with other amounts available to the Loan Parties and permitted to be released hereunder will be at least equal to the Minimum Release Price; 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;(vii)prior to, or concurrently with, the Permitted Release, the Borrowers shall, unless otherwise agreed with the relevant Hedge Counterparties, amend, terminate or otherwise modify (which need not be on a *pro rata* basis) the Hedging Agreements, or any of them, to effect a reduction in the aggregate notional amount under all such Hedging Agreements in an amount commensurate to the reduction in the Funded Facility Amount following any prepayment required to be made in connection with such Permitted Release under <u>Section 2.07(d)</u> (subject to any permitted excess hedging provisions under the terms of the applicable Hedging Agreements).

&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)Each Permitted Release contemplated by <u>Section 8.04(a)(v)</u> shall be subject to such conditions as the Required Lenders may specify in writing.

&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 any Permitted Securitization or other Permitted Release of the Equity Interests of any Borrower and/or any Subsidiary Guarantor, upon the effectiveness of such Permitted Release and related transfer, such Loan Party shall cease to be a "Subsidiary Guarantor", a "Guarantor" and/or a "Borrower", as applicable, hereunder and shall accordingly (A) cease to have any rights under the Facility Documents in such capacities (and its signature in such capacity shall not be required for any subsequent amendment hereto or any other Facility Documents to which the Borrowers are party), and (B) be released from all Obligations owed to the Secured Parties and all other obligations under this Agreement, the Lender Fee Letter, the BNY Fee Schedule and the Management Agreement. Notwithstanding the foregoing, in the case of any such Permitted Release not involving a Permitted Securitization or in the case of any Permitted Release of the Equity Interests in the last remaining Loan Party, the Agents and the Required Lenders may require, as a condition to the effectiveness of such

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Permitted Release, that such Subsidiary Guarantor remain liable (conditionally or otherwise) for any remaining Obligations or any other obligations 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;(f)In connection with any Permitted Release, the Collateral Agent (as directed in writing by the Required Lenders) is hereby irrevocably authorized by each other Secured Party to execute such documents as shall be reasonably requested by the Borrowers to evidence the release of the Lien of the Collateral Agent in the applicable 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;(g)Notwithstanding anything to the contrary herein or in any other Facility Document, except with respect to continuation statements for the purpose of maintaining the Collateral Agent's perfected security interest in the Collateral, no Borrower shall file, or permit or consent to any other Person filing, any terminations or amendments to any UCC financing statements (or any other filing, recording or other instrument for the purpose of perfecting the Collateral Agent's security interest in any Collateral (for the benefit of the Secured Parties)), or any of the foregoing in favor of any Person other than the Collateral Agent, in each case without the prior written consent of the Collateral Agent (acting at the written direction of the Required Lenders).

**Article IX<br>APPLICATION OF MONIES**

**Section 9.01<u>Priority of Payments</u>**. On each Payment Date, the Borrowers (and the Manager on their behalf) shall cause all Distributable Cash in respect of such Payment Date to be applied in accordance with the following priorities (the "<u>Priority of Payments</u>") and the related Periodic Report:

&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>, to the extent any reserves have been established in respect of such Payment Date for the payment of Obligations payable under and pursuant to <u>Section 2.11(a)</u>, <u>2.12</u>, <u>11.03(d)</u> or <u>11.04</u>, to the payment of such Obligations, on a pro rata basis based on the aggregate amount of such Obligations owed to each applicable Secured Party, until such Obligations have been paid in full in cash or such reserves have been exhausted;

&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>, (i) <u>first</u>, to any Approved Account Bank, any amounts then due and payable to such Approved Account Bank that are not subordinated to the Obligations under the terms of the related Account Control Agreement (including, for the avoidance of doubt, any indemnification amounts), then (ii) <u>next</u>, to the Administrative Agent and the Collateral Agent, in respect of any fees due and payable to it pursuant to the BNY Fee Schedule, together with any expense reimbursement, indemnification payments or other amounts then owed to it hereunder or under any Facility Document, in an amount not to exceed $150,000 in the aggregate in any calendar year; <u>provided</u> that such limit shall not be applicable during the occurrence and continuation of an Event of Default or upon any final payment, then (iii) <u>next</u>, to the Manager, any accrued and unpaid Management Fees then due and payable pursuant to the Management Agreement then (iv) <u>next</u>, to the Manager, any reimbursement of expenses due to the Manager pursuant to the Management Agreement in an amount not to exceed $200,000 in any calendar year;

&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)<u>third</u>, on a *pro rata* basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>third</u>, (i) to the Administrative Agent for distribution to each Lender to pay (A) accrued and unpaid Interest on the Advances, (B) amounts payable to each such Lender or the Administrative Agent under <u>Section 2.11(a)</u>, <u>2.12</u>, <u>11.03(d)</u> and <u>11.04</u>, in each case, to the extent not previously paid pursuant to the Priority of Payments (including pursuant to <u>clause</u> <u>first</u> above) and (C) accrued and unpaid Undrawn Fees, and (ii) to each Secured Hedge Counterparty under each Hedging Agreement with such Secured Hedge Counterparty, the payment of all amounts which are due and payable under such Hedging Agreement on such date (other than fees, expenses, termination payments, indemnification payments, tax payments, collateral postings or other similar 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;(d)<u>fourth</u>, if the Final Maturity Date has occurred or an Event of Default has occurred and is continuing, to pay, on a pro rata basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>fourth</u>, (i) to the Administrative Agent for distribution to each Lender on a pro rata basis based on outstanding principal amount, to pay the outstanding principal of the Advances until

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paid in full in cash and (ii) to each Secured Hedge Counterparty under each Hedging Agreement with such Secured Hedge Counterparty, all amounts due and payable under such Hedging Agreement (including breakage and termination payments, but excluding amounts described in <u>clause</u> <u>third</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;(e)<u>fifth</u>, to the Borrower Interest Reserve Account, until the amount on deposit in therein is equal to the Interest 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;(f)<u>sixth</u>, (i) to the Administrative Agent for distribution to each Lender on a pro rata basis based on outstanding principal amount, to pay the outstanding principal of the Advances of each Lender (including to the extent applicable, any Mandatory Prepayment Amounts payable in connection with a Permitted Release) in connection with any Optional Prepayment occurring on such Payment Date and (ii) to each Secured Hedge Counterparty under each Hedging Agreement with such Secured Hedge Counterparty, all amounts due and payable under such Hedging Agreement (including breakage and termination payments, but excluding amounts described in <u>clause</u> <u>third</u> above and without duplication of amounts paid in <u>clause</u> <u>fourth</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;(g)<u>seventh</u>, to pay all other Obligations of any Borrower owed to any Secured Party under the Facility Documents, on a pro rata basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>seventh</u>, including, without limitation, any and all expense reimbursement, indemnity obligations and other liabilities owed to any Secured Party not previously paid pursuant to the Priority of Payments (including amounts contemplated in <u>clause</u> <u>third</u> in excess of the cap set forth therein);

&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)<u>eighth</u>, to pay all other liabilities of any Borrower under the Facility Documents, on a pro rata basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>eighth</u>, including, without limitation, any and all expense reimbursement, indemnity obligations and other liabilities not previously paid pursuant to the Priority of Payments (including amounts contemplated in <u>clause</u> <u>second</u> in excess of the cap set forth therein, and to the extent otherwise unpaid, any amounts then due and payable under any Collateral Document, whether or not such amounts are required to be reserved for in a Borrower Liability 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;(i)<u>ninth</u>, to reserve, by making a deposit to one or more Borrower Accounts, for any other liabilities of any Borrower under the Collateral Documents or the other Facility Documents that are, or reasonably may become (as determined by the Manager in accordance with the Management Standard), due and payable prior to the next Payment Date, to the extent applicable reserves then on deposit in the applicable Borrower Accounts are insufficient to pay such liabilities 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;(j)<u>tenth</u>, (i) for so long as no Event of Default has occurred and is continuing, the remainder to be released to the Borrowers pursuant to a Permitted Release and (ii) if an Event of Default has occurred and is continuing, the remainder to remain on deposit in the Borrower Payment Account.

All of the foregoing amounts due and payable to a Committed Lender that has a related Conduit Lender or to such Conduit Lender shall be made to such Lenders' Managing Agent for the account of such Lenders.

**Section 9.02<u>Withdrawals from Interest Reserve</u>**. On each Payment Date, after application of the Priority of Payments, (a) if there remains any Interest due on the Advances that remain unpaid, an amount equal to such shortfall (or if less, all amounts then on deposit in the Borrower Interest Reserve Account) shall be withdrawn from the Borrower Interest Reserve Account and applied to make such Interest payments, and to the extent the amounts on the Borrower Interest Reserve Account are insufficient to make such Interest payments, withdrawn and applied from any Cure Contribution Holding Account holding DSCR Cure Contributions or LTV Cure Contributions, until such Interest payments have been paid in full in cash, and (b) if the amount on deposit in the Borrower Interest Reserve Account is in excess of the Interest Reserve Required Amount (as determined for the following Payment Date after giving effect to the application of the Priority of Payments on such Payment Date), at the request of the Borrowers, an amount equal to such excess may be withdrawn from the Borrower Interest Reserve Account and transferred to the Borrower Payment Account (without increasing Collections or Net Cash

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Flow), and applied as Distributable Cash in accordance with the Priority of Payments on the following Payment Date (or to the extent consented to by the Required Lenders, the same Payment Date).

**Section 9.03<u>Excepted Earn-out Liabilities</u>.** With respect to any Excepted Earn-out Liabilities agreed between the Borrowers and the sellers under any Asset Transfer Agreement, the Borrowers shall, pursuant to <u>Section 9.01(j),</u> reserve for such Excepted Earn-out Liabilities out of Collections on the Payment Date preceding the date on which such Excepted Earn-out Liabilities are, or reasonably may become (as determined by the Manager in accordance with the Management Standard) a liability of the Borrowers due and owing following such Payment Date. Such amounts shall be reserved in the Borrower Liability Reserve Account. Without limiting the foregoing, the Borrowers may fund any Excepted Earn-Out Liabilities from (x) Permitted Releases or (y) capital contributions up to an aggregate amount not to exceed 10% of the maximum aggregate Commitment Amount during the term of this Agreement, as such aggregate Commitment Amount may be increased pursuant to <u>Section 2.19</u>.

**Section 9.04<u>Hedging Unwind Payments</u>.** In the event that a Loan Party becomes obligated to make a breakage or termination payment to a Secured Hedge Counterparty upon the unwind or termination of a Hedging Agreement (or any trade thereunder) on any date other than a Payment Date (any such date, a "<u>Hedge Unwind Date</u>"), then such Loan Party shall be permitted to make (or to direct the applicable Approved Account Bank, as applicable, to make) such payment out of Distributable Cash out of the Borrower Payment Account on such Hedge Unwind Date upon delivery by such Loan Party (or the Manager on its behalf) of a certificate to the Lenders (with a copy to the Administrative Agent) confirming that (i) no Manager Termination Event, Unmatured Event of Default or Event of Default has occurred and is continuing as of such Hedge Unwind Date or would result from such payment and (ii) after giving effect to such payment, such Loan Party (or the Manager on its behalf) reasonably expects sufficient Distributable Cash to be available to make payment of the obligations set forth in <u>clauses (a)</u> through <u>(e)</u> of the Priority of Payments on the Payment Date immediately following such Hedge Unwind Date.

**Article X<br>THE AGENTS**

**Section 10.01<u>Authorization and Action</u>**. (a) Each Lender hereby irrevocably appoints and authorizes each Agent to take such action as are expressly set forth herein as agent on its behalf and to exercise its respective powers under this Agreement and, to the extent applicable, the other Facility Documents to which such Agent is a party, 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. In addition, each Secured Party hereby appoints the Collateral Agent to act as its agent and representative for purposes of perfecting a security interest in the Collateral for the benefit of the Secured Parties (including to act as the representative "secured party" and "secured party of record" for purposes of the UCC) and to take such actions in connection therewith as expressly provided for herein or in the other Facility Documents to which it is a party or as directed in writing by the Required Lenders. 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 any Agent shall be read into this Agreement or any other Facility Document 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 and 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 reasonable written instructions, subject to <u>Section 10.03(b)(xi)</u>, of the Required Lenders; <u>provided</u> that no Agent shall 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 written instructions (or, by

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refusing to provide instruction) to the Administrative Agent withhold its consent or exercise its discretion in an unreasonable manner. For the avoidance of doubt, the Administrative Agent shall have no obligation to provide consent or exercise discretion in the absence of such written instructions, and shall incur no liability to any Lender or any other Person in not providing such consent or using such discretion.

&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;&nbsp;&nbsp;&nbsp;&nbsp;In furtherance of the foregoing, so long as The Bank of New York Mellon is the Administrative Agent or the Collateral Agent, whenever reference is made in this Agreement or the other Facility Documents to any discretionary 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 either the Administrative Agent or 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 either the Administrative Agent or the Collateral Agent, it is understood that the Administrative Agent or the Collateral Agent shall be acting solely at the written direction of the number or percentage of Lenders as shall be expressly provided for herein or in the other Facility Documents, and in the absence of such specification, by the Required Lenders or the Lead Borrower, as applicable, and shall be fully protected in acting pursuant to such directions; provided, however, if either Agent receives conflicting instructions from the Required Lenders and the Lead Borrower prior to taking such action, the instructions of the Required Lenders shall control. Notwithstanding anything contained in this Agreement or the other Facility Documents to the contrary, without limiting any rights, protections, immunities or indemnities afforded to the Administrative Agent hereunder (including without limitation this Article X), phrases such as "satisfactory to the Administrative Agent," "approved by the Administrative Agent," "acceptable to the Administrative Agent," "as determined by the Administrative Agent," "designed by the Administrative Agent", "specified by the Administrative Agent", "in the Administrative Agent's discretion," "selected by the Administrative Agent," "elected by the Administrative Agent," "requested by the Administrative Agent," "in the opinion of the Administrative Agent," "required by the Administrative Agent", "as the Administrative Agent deems necessary or advisable" and phrases of similar import that authorize or permit the Administrative Agent to approve, disapprove, determine, act, evaluate or decline to act in its discretion shall be subject to the Administrative Agent receiving a direction from the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Facility Documents).

**Section 10.02<u>Delegation of Duties</u>**. 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 acts or omissions of any agents or attorneys-in-fact selected by it with reasonable care.

**Section 10.03<u>Agent Rights; Limitation of Liability</u>**. (a) Neither Agent or 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 as determined by a court of competent jurisdiction by final and non-appealable judgment.

&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)Without limiting the generality of the foregoing, each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)may consult with legal counsel (including counsel for any Borrower, the Manager or any of their Affiliates) and independent public accountants and other experts selected by it, and any advice or opinion received in connection therewith shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by such Agent in good faith in accordance with such advice or opinion; and no Agent shall be liable for any action taken, suffered or omitted to be taken in good faith by it in accordance with any such advice or opinion;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)makes no warranty or representation to any Secured Party or any other Person and shall not be responsible to any Secured Party or any Person for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or the other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)shall not have any duty to monitor, ascertain, investigate or inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement, any Collateral Documents or any other Facility Documents, or any notice, consent, certificate, instruction, waiver, report, statement, opinion, direction, or other instrument, document, writing or communication of any kind or nature (physical, electronic, telephonic, oral or otherwise) on the part of any Borrower, the Manager, any Obligor or any other Person, or as to the existence or possible existence of any Manager Termination Event, Unmatured Event of Default, Event of Default or any other event, or to inspect the property (including the books and records) of any Borrower, the Manager, any Obligor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)shall not be responsible to any Secured Party or any other Person for the due execution, legality, validity, enforceability, collectability, perfection, genuineness, effectiveness, priority, sufficiency or value of any Collateral, this Agreement, the Collateral Documents, the other Facility Documents or any other instrument or document furnished pursuant hereto or thereto, any recitals, statements, information, representations or warranties regarding the Collateral, any Loan Party, the Manager or any other Person, or the financial or other condition of any such Person, or for the validity, perfection, priority or enforceability of the Liens on the Collateral, and it is expressly acknowledged by each other party hereto that no Agent shall have any duty or obligation whatsoever to (A) file or record any financing statements, Intellectual Property Security Agreements or other instruments to perfect any such Lien, or to see to the continuation or maintenance thereof, (B) see to any insurance or (C) see to the payment or discharge of any Tax, assessment, governmental charge or any other Lien of any kind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall incur no liability under or in respect of this Agreement or any other Facility Document by relying on, acting upon (or by refraining from action in reliance on) any notice, consent, certificate (including for the avoidance of doubt, any Periodic Report), instruction or waiver, report, statement, opinion, direction or other instrument or writing (which may be delivered by email) believed by it to be genuine and believed by it to be signed or sent by the proper party or 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;(vi)shall have no liability to any Borrower or any Lender or any other Person for any Borrower's, the Manager's, any Obligor'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;&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)shall have no obligation whatsoever to any Person to (A) assure that any Collateral exists or is owned by any Person or is cared for, protected or insured, (B) assure that any Liens have been properly or sufficiently or lawfully created, perfected, protected, maintained or enforced or are entitled to any particular priority, (C) exercise (at all) or to continue exercising (if commenced), in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities or powers granted or available with respect thereto or (D) commence, prosecute or defend legal proceedings in any instance, whether on behalf of the Borrowers or on its own behalf or otherwise, with respect to any matter arising hereunder or relating to this Agreement or any services or activities contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall not be liable for the actions or omissions of any other agent (including without limitation any other Agent, and whether concerning the application of funds or any other matter), or under any duty to monitor or investigate compliance on the part of any such other agent with the terms or requirements of this Agreement, any Collateral Documents, any other Facility Documents, or their duties 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;(ix)shall be entitled to assume the due authority of any signatory and genuineness of any signature appearing on any resolution, certificate, statement, opinion, report,

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notice, request, direction, consent, order or other instrument or document it may receive (including without limitation each Joinder Agreement, Notice of Borrowing and Release Request received hereunder), shall have no duty to inquire into or investigate the authenticity or authorization of any such signature (whether manual, electronic or otherwise) and shall be entitled to conclusively rely on any such signature without any liability with respect thereto, and shall be fully protected in acting or refraining from acting in reliance thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) shall not be liable for any action taken in good faith and reasonably believed by it to be within the powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed, or omitted to be taken by it by reason of the lack of direction or instruction required hereby for such action (including 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);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall in no event be obligated to advance, expend or risk its own funds, or to take any action which in its reasonable judgment may cause it to incur any expense or financial or other liability for which it is not indemnified to its reasonable satisfaction, and if requested or directed by the Required Lenders to take any action pursuant to any provision of this Agreement or any other Facility Document, shall be under no obligation to exercise any of its rights, authorities or powers in the manner so requested or directed unless it shall have been provided indemnity or security reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred by it in performing or otherwise complying with such request or direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall have no duty or obligation to take any action to exercise or enforce any of its rights, authorities or powers, including exercising any remedies against the Collateral (whether or not an Event of Default has occurred and is continuing) unless and until directed in writing (and provided with any applicable indemnity) by the Required 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)shall have no liability to any Loan Party, the Manager, any Secured Party, any of their respective Affiliates or any other Person for any exercise of remedies or any other action taken, suffered or omitted to be taken at the direction of the Required Lenders, whether or not the applicable directing Person was then authorized or entitled to give such direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall not be deemed to have notice or knowledge (constructive or otherwise) of any fact, claim, demand, event or other matter relating to this Agreement or any other Facility Document (including without limitation the occurrence or continuation of any Manager Termination Event, Unmatured Event of Default or Event of Default) unless (and then only to the extent) received in writing by a Responsible Officer of the Administrative Agent or the Collateral Agent, as applicable, and specifically referencing this Agreement and the fact, claim, demand, event or other matter with respect to which such notice is being given, and shall not be charged with notice or knowledge (constructive or otherwise) of any such fact, claim, demand, event or other matter by reason of the fact that the same could be discerned from the contents of any notices, reports or other instruments or documents prepared by any Person, whether or not received by the applicable Agent, except to the extent such fact, claim, demand, event or other matter is so specifically referenced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall not be responsible for or charged with notice or knowledge (constructive or otherwise) of any terms or conditions contained in any Facility Document to which it is not a party, whether or not such Facility Document is referred to in any agreement or instrument entered into, signed or acknowledged by such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, opinion, report, notice, request, direction, consent, order or other instrument or document;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)shall not be liable for any indirect, special, punitive or consequential damages (included but not limited to lost profits) whatsoever, even if it has been informed of the likelihood thereof and regardless of the form of action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) 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 as shall be determined by a court of competent jurisdiction by final and non-appealable judgment that it was grossly negligent in ascertaining the relevant facts; 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;(xix)shall not be responsible or liable for delays or failures in performance resulting from acts beyond its control, including but not limited to: acts of God, strikes, work stoppages, accidents, lockouts, riots, acts of war, terrorism, disease, epidemics, pandemics, quarantines, national emergencies, nationalization, civil or military disturbances, expropriation, fire, failures or interruptions of communications, computer (software or hardware) or other equipment, facilities or utilities, governmental regulations imposed, adopted or implemented after the fact, other acts of government, computer viruses, power failures, earthquakes, nuclear or natural catastrophes or other disasters.

&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 permissive or discretionary right, authority or power conferred to any Agent or otherwise available to it shall be construed to impose on such Agent any duty to exercise the same or any other duty or obligation whatsoever.

&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)Subject to the express terms of this Agreement and each applicable Facility Document to which the applicable Agent is a party, whenever an Agent is entitled to or required to obtain any notice, information or other communication pursuant to or as contemplated by this Agreement or the other Facility Documents, it shall be entitled to receive the same in such form, format and medium reasonably acceptable to it, and whenever any such notice, information or other communication is required to be forwarded, delivered or otherwise made available by an Agent to any other Person, it shall be entitled to make the same available in such form, format and medium reasonably acceptable to it, and otherwise in accordance with any applicable term 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;(d)Whether or not expressly stated in such Facility Document, each Agent, in its capacity as such under or in connection with any other Facility Document, shall be entitled to all rights, benefits, protections, limitations of liability and indemnification as provided for herein.

&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 event any dispute or disagreement arises as to the allocation of any Collections or any other Collateral, as applied pursuant to the Priority of Payments or otherwise, the Agents shall have the right to deliver such property to a court of competent jurisdiction and therein commence an action for interpleader.

&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)Each Lender acknowledges that no Agent has made any representation or warranty to it, and that no act by either Agent hereafter taken, including any consent and acceptance of any Assignment and Acceptance or review of the affairs of the Borrowers, shall be deemed to constitute any representation or warranty by such Agent to any such Lender 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, and investigation into, the Collateral, the Borrowers, the Manager and all other matters relevant to its decision to make Advances hereunder, 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 either 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 Collateral, the Borrowers, the Manager and all other matters relevant to its decision to make Advances hereunder. No Agent shall have any duty or responsibility to provide any Lender with any such information, whether or not such information is in the possession of such Agent.

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&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 addition, with respect to each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)No Agent shall have any obligation to make any calculations (including, without limitation, in respect of Interest, LTV Ratios, DSCR, Maximum LTV Ratios, Specific Maximum LTV Ratios, Aggregate Collateral Values (or any of the components thereof), Commitment Amount, or Net Cash Flow) contemplated hereunder or under any other Facility Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Notwithstanding anything expressed or implied to the contrary herein or in any other Facility Document, neither Agent shall be obligated to take any action or make any determination in respect of the Collateral, this Agreement or the other Facility Documents, whether or not any discretionary rights, authorities or powers have been granted or made available to it, and in each case, may require and shall be entitled to receive the direction of the Required Lenders as a condition to taking any such action or making any such determination (including any determination not to act), and shall not be liable to any Person for acting solely in accordance with such direction or refraining or refusing to take any action or make any determination in the absence of such direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)In the event an Agent is required to decide between two alternative courses of action or is otherwise required to make any determination in its capacity as Collateral Agent or Administrative Agent, as applicable, hereunder, it shall be entitled to request written direction from the Required Lenders as to the course of action desired by it. If such Agent does not receive such direction within five (5) Business Days of such request, the applicable Agent may, but shall be under no duty or obligation to, take or refraining from taking any such courses of action. In the event the applicable Agent receives direction after such five (5) Business Day period, such Agent shall act in accordance with such instructions except to the extent that it has already taken, or committed to take, any action contrary to such direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Agent is hereby authorized and directed to execute and deliver on the date hereof, or upon written direction from the Required Lenders, on any subsequent date, to the extent such Agent is a party, (A) each Account Control Agreement relating to the Borrower Accounts, (B) each Intellectual Property Security Agreement relating to any Intellectual Property from time to time owned or acquired by the Borrowers, and (C) each Joinder Agreement, Release Request and each other Collateral Document or other Facility Document from time to time directed by the Required Lenders. The Borrowers and the Secured Parties hereby further acknowledge and consent to the execution and delivery by the Collateral Agent of each Account Collateral 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Without limiting any of the other protections in favor of the Agents set forth herein and for the avoidance of doubt, delivery of reports, notices, information, certificates and other documents to either Agent is for informational or custodial purposes only and such Agent's receipt of such reports, information, certificates or other documents shall not constitute constructive notice to such Agent of any information contained therein or determinable from information contained therein, including any Person's compliance with any of its covenants hereunder or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Neither Agent shall be relieved from liability for its own gross negligence, bad faith or willful misconduct; <u>provided</u>, <u>however</u>, (A) the Agents shall not be liable for any error of judgment made or action taken in good faith by a Responsible Officer of such Agent unless it is proved that the applicable Agent was grossly negligent or engaged in willful misconduct or acted with bad faith in ascertaining the pertinent facts; (B) neither Agent shall be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to this Agreement; (C) neither Agent shall be liable for the actions, omissions, default or misconduct of any other party hereto, or of any other Person in connection with this Agreement or otherwise and may assume that such Persons have performed their obligations under this Agreement absent written notice received by a Responsible Officer of such Agent to the contrary; (D) if any error, inaccuracy or omission (collectively "<u>Errors</u>") exists in any information provided to either Agent by any party, and such Errors cause or materially

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contribute to such Agent making or continuing any Error (collectively "<u>Continuing Errors</u>"), the related Agent shall have no liability for such Continuing Errors; and (E) neither Agent shall be liable for any action or inaction taken or omitted to be taken in good faith in accordance with a direction received by it pursuant to this Agreement, or any failure to perform its duties if such failure is a direct or proximate result of another party's failure to perform its obligations hereunder.

**Section 10.04<u>Indemnification</u>**. Each of the Lenders agrees to indemnify and hold each Agent harmless (to the extent not reimbursed by or on behalf of the Borrowers pursuant to <u>Section 11.04</u> or otherwise) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including reasonable and documented attorneys' fees and expenses) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against such Agent in any way relating to or arising out of this Agreement or any other Facility Document or any action taken or omitted by such Agent under this Agreement or any other Facility Document; <u>provided</u> that no Lender shall be liable to any Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and non-appealable judgment. This Section shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages, arising from any non-Tax claim. The rights of each Agent and obligations of the Lenders under or pursuant to this <u>Section 10.04</u> shall survive the termination of this Agreement, and the earlier removal or resignation of such Agent hereunder.

**Section 10.05<u>Successor Agents</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)Subject to the appointment of a successor Administrative Agent in accordance with this Section <u>10.05</u>, the Administrative Agent may resign as Administrative Agent in the Administrative Agent's sole discretion at any time upon thirty (30) days' notice to the Lenders, the Collateral Agent and the Borrowers. If the Administrative Agent shall resign then the Required Lenders shall appoint a successor agent. If for any reason a successor agent is not so appointed and does not accept such appointment within thirty (30) days of notice of resignation the Administrative Agent may appoint a successor agent or petition a court to appoint a successor agent, at the expense of Borrowers. The appointment of any successor Administrative Agent shall be subject to the prior written consent of the Borrowers (which consent shall not be unreasonably withheld, conditioned or delayed); <u>provided</u> that the consent of the Borrowers to any such appointment shall not be required if (i) an Event of Default shall have occurred and is continuing or (ii) if such successor Administrative Agent is a Lender or an Affiliate of such Administrative Agent or any Lender.

&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)Subject to the appointment of a successor Collateral Agent in accordance with this <u>Section 10.05</u>, the Collateral Agent may resign as Collateral Agent in the Collateral Agent's sole discretion at any time upon thirty (30) days' notice to the Lenders, the Collateral Agent and the Borrowers, and may be removed by the Required Lenders upon thirty (30) days' notice to the Collateral Agent, the Borrowers, the Administrative Agent and the Lenders. In the event of any such resignation or removal, the Required Lenders shall appoint a successor agent. The appointment of any successor Collateral Agent shall be subject to the prior written consent of the Borrowers (which consent shall not be unreasonably withheld, conditioned or delayed) and the consent of the Required Lenders (which consent shall not be unreasonably withheld, conditioned or delayed); <u>provided</u> that the consent of the Borrowers to any such appointment shall not be required if (i) an Event of Default shall have occurred and is continuing or (ii) if such successor Collateral Agent is a Lender or an Affiliate of 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;(c)Any resignation or removal of any Agent shall be effective upon the appointment of a successor agent pursuant to this <u>Section 10.05</u>. After the effectiveness of the outgoing Agent's resignation or removal hereunder as an Agent, such outgoing Agent shall be discharged from its duties and obligations hereunder and under the other Facility Documents and the provisions of this <u>Article X</u> shall continue in effect for its benefit with respect to any actions taken or omitted to be taken by it while it was an Agent under this Agreement and under the other 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;(d)Any Person (i) into which an Agent may be merged or consolidated, (ii) that may result from any merger or consolidation to which such Agent shall be a party, or (iii) that may succeed to

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the properties and assets of an Agent substantially as a whole, shall be the successor to such Agent under this Agreement and the other Facility Documents without further act of any of the parties to this Agreement.

**Section 10.06<u>[Reserved]</u>**.

**Section 10.07<u>Erroneous Payments</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)If the Administrative Agent notifies a Lender or another Secured Party, or any Person who has received funds on behalf of a Lender, another Secured Party or any other Person (any such Lender, Secured Party or other recipient, a "<u>Payment Recipient</u>") that the Administrative Agent has received written notice from another Secured Party that any funds received by such Payment Recipient were erroneously or mistakenly 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 transmitted or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the related Secured Party and shall be segregated by the Payment Recipient and held in trust for the benefit of the related Secured Party, 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 (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the same interest rate the Borrowers were required to pay interest hereunder during such period. A notice of the Administrative Agent to any Payment Recipient under this <u>Section 10.07(a)</u> shall be conclusive, absent manifest error.

&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)Without limiting the immediately preceding clause (a), each Payment Recipient 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) in respect of the Advances or the Obligations or otherwise with respect to this Agreement or the other Facility Documents (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment or applicable Periodic Report applicable to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment or applicable Periodic Report delivered hereunder, or (z) that such Lender, Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent (acting at the written direction of the Required Lenders) to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)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 (1) Business Day of its knowledge of such error) notify the Administrative Agent (in writing) of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section 10.07(b)</u>.

(iii)For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this <u>Section 10.07(b)</u> shall not have any effect on a Payment Recipient's obligations pursuant to <u>Section 10.07(a)</u> or on whether or not an Erroneous Payment has been made.

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&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)Each Lender and other Secured Party hereby authorizes the Administrative Agent and the Collateral Agent, in each case, at the direction of the Required Lenders, 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 such Agent to such Lender or Secured Party from any source, against any amount due to such Agent under immediately preceding <u>Sections 10.07(a)</u> and <u>(b)</u> or under the indemnification provisions 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;(d)The parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender, to the rights and interests of such Lender) under the Facility Documents with respect to such amount (the "<u>Erroneous Payment Subrogation Rights</u>") and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrowers; <u>provided</u> that this <u>Section 10.07(d)</u> shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the Obligations of the Borrowers relative to the amount (and/or timing for payment) of the Obligations that would have been payable had such Erroneous Payment not been made by such Agent; <u>provided</u>, <u>further</u>, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by an Agent from, or on behalf of (including through the exercise of remedies under any Facility Document), the Borrowers for the purpose of a payment on the 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;(e)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 any 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Each party's obligations, agreements and waivers under this <u>Section 10.07</u> shall survive the resignation or replacement of any 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 10.08<u>Electronic Communications</u>**. Each Agent hereby agrees to accept and act upon instructions or directions pursuant to this Agreement and the other Facility Documents sent by unsecured e-mail (or .pdf files of executed documents), or other similar unsecured electronic methods, provided that any person providing such instructions or directions shall provide to such Agent an incumbency certificate listing such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If any party hereto elects to give an Agent e-mail instructions (or .pdf files of executed documents or other instructions by a similar electronic method), such Agent's understanding of such instructions actually received by such Agent shall be deemed controlling in the event that such instructions are ambiguous; <u>provided</u> that prior to acting in response to any such instructions that it deems to be ambiguous, such Agent shall use commercially reasonable efforts to contact the instructing party and obtain from such instructing party any necessary clarifications with respect to such instructions. Each of the other parties hereto understands and agrees that neither of the Agents can determine the identity of the actual sender of such instructions and that each Agent shall conclusively presume that directions that purport to have been sent by an officer listed on the incumbency certificate provided to it have been sent by such officer. The other parties hereto shall be responsible for ensuring that only authorized officers transmit such instructions to the Agents and that each such party is solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by it. Neither of the Agents shall be liable for any losses, costs or expenses arising directly or indirectly from such Agent's reasonable, good faith reliance upon and compliance with such instructions, notwithstanding that such directions conflict with or are inconsistent with a subsequent written instruction, subject to the duty of care applicable to such Person acting in such capacity. Each of the other parties hereto agrees (i) to assume all risks arising out of its respective use of such electronic methods to submit instructions and directions to

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either of the Agents, including without limitation the risk of either of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties, (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting instructions to the Agents and that there may be more secure methods of transmitting instructions than the method(s) selected by it, (iii) that the security procedures (if any) to be followed in connection with its transmission of instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances and (iv) to notify the Agents immediately upon learning of any compromise or unauthorized use of the security procedures.

**Section 10.09<u>Managing Agents</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)<u>Authorization and Action</u>. Each Conduit Lender and its related Committed Lender hereby appoints and authorizes its Managing Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Facility Documents as are delegated to such Managing Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. No Managing Agent shall have any duties other than those expressly set forth in the Facility Documents, and no implied obligations or liabilities shall be read into any Facility Document, or otherwise exist, against any Managing Agent. No Managing Agent assumes, nor shall it be deemed to have assumed, any obligation to, or relationship of trust or agency with, any Loan Party. Notwithstanding any provision of this Agreement or any other Facility Document, in no event shall any Managing Agent ever be required to take any action which exposes such Managing Agent to personal liability or which is contrary to any provision of any Facility Document or applicable law. Unless notified in writing to the contrary by the applicable Committed Lender, Agents and the Loan Parties shall provide all notices and payments specified to be made by to a Conduit Lender or a related Committed Lender hereunder to the related Managing Agent, if any, for the benefit of such Lenders. Each Managing Agent may perform any of the obligations of, or exercise any of the rights of, any related Lender and such performance or exercise shall constitute performance of the obligations of, or exercise of the rights of, such Lenders hereunder. In performing its functions and duties hereunder and under the other Facility Documents, each Managing Agent shall act solely as agent for its related Lenders and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for any other Lender, Loan Party or any other Person, or any of their respective successors or assigns. Each Lender hereby designates the Managing Agent, if any, to act as its Managing Agent, and such Managing Agent hereby agrees to perform the duties and obligations of, such related 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;(b)<u>Managing Agents' Reliance, Etc</u>. No Managing Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them as a Managing Agent under or in connection with this Agreement or the other Facility Documents (i) with the consent or at the request or direction of its related Committed Lenders or (ii) in the absence of its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, a Managing Agent: (a) may (at the cost of such Managing Agent or its related Committed Lender) consult with legal counsel (including counsel for any Loan Party), independent certified 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; (b) makes no warranty or representation to any Lender (whether written or oral) and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or any other Facility Document; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or any other Facility Document on the part of any Loan Party or any other Person or to inspect the property (including the books and records) of any Loan Party; (d) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement, any other Facility Documents or any other instrument or document furnished pursuant hereto; and (e) shall incur no liability under or in respect of this Agreement or any other Facility Document by acting upon any notice (including notice by telephone), consent, certificate or other instrument or writing (which may be by e-mail, telecopier or other electronic communication) believed by it to be genuine and signed or sent by the proper party or 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;(c)<u>Managing Agent and Affiliates</u>. With respect to any Advances by its related Lenders, each Managing Agent shall have the same rights and powers under this Agreement as any

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Committed Lender and may exercise the same as though it were not a Managing Agent; provided that no such exercise of rights and powers shall release such Managing Agent from any of its obligations hereunder, or substitute any Committed Lender for such Managing Agent as a party hereto. Each Managing Agent and any of its Affiliates may generally engage in any kind of business with the Loan Parties, any of their respective Affiliates and any Person who may do business with or own securities of any Loan Party or any of their respective Affiliates, all as if such Managing Agent were not a Managing Agent and without any duty to account therefor to any Conduit Lenders or Committed 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;(d)<u>Indemnification of Managing Agents</u>. Each Committed Lender agrees to indemnify its Managing Agent (to the extent not otherwise reimbursed by a Loan Party), ratably according to the proportion of the percentage of such Committed Lender to the aggregate percentages of all related Committed Lenders, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against such Managing Agent in any way relating to or arising out of this Agreement or any other Facility Document or any action taken or omitted by such Managing Agent provided that no Committed Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Managing Agent's gross negligence or willful misconduct.

&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)<u>Delegation of Duties</u>. Each Managing Agent may execute any of its duties through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Managing Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

&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)<u>Action or Inaction by Managing Agent</u>. Each Managing Agent shall in all cases be fully justified in failing or refusing to take action under any Facility Document unless it shall first receive such advice or concurrence of its related Lenders and assurance of its indemnification by its related Lenders, as it deems appropriate. Each Managing Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Facility Document in accordance with a request or at the direction of its related Lenders, and such request or direction and any action taken or failure to act pursuant thereto shall be binding upon all related 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;(g)<u>Notice of Events of Termination</u>. No Managing Agent shall be deemed to have knowledge or notice of the occurrence of any Unmatured Event of Default or Event of Default unless such Managing Agent has received notice from the Administrative Agent, any other Managing Agent, any Lender, or any Loan Party stating that an Unmatured Event of Default or Event of Default has occurred hereunder and describing such Unmatured Event of Default or Event of Default. If a Managing Agent receives such a notice, it shall promptly give notice thereof to its related Lenders. The Managing Agent shall take such action concerning an Unmatured Event of Default or Event of Default as may be directed by its related Lenders, but until such Managing Agent receives such directions, such Managing Agent may (but shall not be obligated to) take such action, or refrain from taking such action, as such Managing Agent deems advisable and in the best interests of its related 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;(h)<u>Non-Reliance on Managing Agent and Other Parties</u>. Except to the extent otherwise agreed to in writing between a Lender and its Managing Agent, each related Lender expressly acknowledges that neither their Managing Agent, any of its Affiliates nor any of such Managing Agent's or Affiliate's directors, officers, agents or employees has made any representations or warranties to it and that no act by such Managing Agent hereafter taken, including any review of the affairs of the Loan Parties, shall be deemed to constitute any representation or warranty by such Managing Agent. Except to the extent otherwise agreed to in writing between a Lender and its Managing Agent, each related Lender represents and warrants to its Managing Agent that, independently and without reliance upon such Managing Agent, any of its Affiliates, any other Managing Agent, the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, it has made and will continue to make its own appraisal of, and investigation into, the business, operations, property, prospects, financial and other conditions and creditworthiness of the Loan Parties and the Collateral Agent and its own decision to enter into this Agreement and to take, or omit, action under this Agreement or any other Facility Document. Except for items expressly required to be delivered under this Agreement or any other Facility Document by a Managing Agent to any related Lender, no Managing

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Agent shall have any duty or responsibility to provide any related Lender with any information concerning the Loan Parties or any of their Affiliates that comes into the possession of such Managing Agent or any of its directors, officers, agents, employees, attorneys-in-fact or Affiliates.

&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)<u>Reliance on Managing Agent</u>. Unless otherwise advised in writing by a Managing Agent or by any Lender related to such Managing Agent, each party to this Agreement may assume that (i) such Managing Agent is acting for the benefit and on behalf of each of its related Lenders, as well as for the benefit of each assignee or other transferee from any such Person, and (ii) each action taken by such Managing Agent has been duly authorized and approved by all necessary action on the part of its related Lenders.

**Article XI<br>MISCELLANEOUS**

**Section 11.01<u>No Waiver; Modifications in Writing</u>**. (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, and any consent to any departure by any party to this Agreement 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 any Borrower in any case shall entitle any Borrower 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise expressly set forth in this Agreement (including Section 2.17(c) and Section 2.18), no amendment, modification, supplement or waiver of this Agreement shall be effective unless signed by the Borrowers, the Agents and the Required Lenders, <u>provided</u> 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;(i)subject to clause (iii) below, any Fundamental Amendment shall require the written consent of each affected 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;&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, duties, immunities or liabilities of any Agent or any Approved Account Bank without the prior written consent of such Agent or Approved Account Bank (as applicable); 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)no such amendment, modification, supplement or waiver shall amend, modify or waive this Agreement or any other Facility Document (other than Hedging Agreements) so as to alter the ratable treatment of Obligations arising under a Hedging Agreement relative to Obligations arising under the Facility Documents (other than Hedging Agreements) or the definition of "Secured Party", "Secured Hedge Counterparty", "Hedge Counterparty", "Hedging Agreement", "Facility Documents" or "Obligations" (as such terms, or terms with similar meanings, are defined in this Agreement or any other Facility Document) in each case in a manner adverse to any Secured Hedge Counterparty without the written consent of any such Secured Hedge Counterparty.

&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 connection with the execution of any amendment hereto or to any Facility Document to be executed by either Agent, the Lead Borrower shall deliver an officer's certificate to such Agent, stating that such amendment is authorized or permitted hereunder or under such Facility Document, as applicable, and that all conditions precedent to the execution of such amendment have been complied with.

**Section 11.02<u>Notices, Etc</u>**. Except as otherwise provided herein, all notices and other communications hereunder to any party shall be in writing and sent by certified or registered mail, return receipt requested, by overnight delivery service, with all charges prepaid, by hand delivery, or by e-mail, to (i) in the case of the Agents, the Corporate Trust Office, Attention: Shylock Baloyi, Email: Shylock.Baloyi@bny.com, and (ii) in the case of any other Person, such party's address or e-mail address set forth in <u>Schedule 1</u> or <u>Schedule 2</u> hereto, as applicable, or as set forth in the Joinder Agreement or

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Assignment and Acceptance pursuant to which it became a party hereto, or at such other address or e-mail address as such party may hereafter specify in a notice given in the manner required under this <u>Section 11.02</u>. All such notices and correspondence shall be deemed given (a) if sent by certified or registered mail, three (3) Business Days after being postmarked, (b) if sent by overnight delivery service or by hand delivery, when received at the above stated addresses or when delivery is refused, (c) if sent by electronic transmission, upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement) and (d) if made available and posted on an internet or intranet website to which each Lender and the Administrative Agent have access (whether a commercial, third-party website (including any website maintained by the SEC) or whether sponsored by the Administrative Agent). Each Borrower hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents out of any courts in any action, suit or proceeding in connection with this Agreement by serving a copy thereof upon such Borrower or by mailing copies thereof by regular or overnight mail, postage prepaid, to such Borrower at its address as specified above.

**Section 11.03<u>Taxes</u>**. (a) For purposes of this <u>Section 11.03</u>, the term "Applicable Law" includes FATCA. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Any and all payments by or on account of any obligation of any Borrower under this Agreement and any other Facility Document shall be made free and clear of, and without deduction or withholding for, any and all Taxes, except as required by Applicable Law. If the Borrowers shall be required by Applicable Law (as determined in the good faith discretion of the Borrowers) to deduct or withhold any Taxes from, or in respect of, any sum payable by it hereunder or under any other Facility Document to any Secured Party, then the Borrowers 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 Borrowers shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this <u>Section 11.03</u>) such Secured Party receives an amount equal to the sum it would have received had no such deductions or withholding been 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;(b)In addition, the Borrowers agree to timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Required Lenders timely reimburse it for the payment of, any present or future stamp, sales, court or documentary, intangible, recording, filing or similar Taxes or any other excise or property Taxes, charges or similar levies which 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, this Agreement or under any other 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>Sections 2.11(b),</u> <u>11.03(h)</u> or <u>12.01(h)</u>) (such Taxes, hereinafter referred to as "<u>Other Taxes</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;(c)The Borrowers agree to indemnify each of the Secured Parties, by paying (on a Payment Date) or reserving in a Restricted Borrower Account (for payment on the next following Payment Date), within ten (10) days after demand therefor, for the full amount of Indemnified Taxes, including any Indemnified Taxes imposed or asserted by any jurisdiction on amounts payable under this <u>Section 11.03,</u> paid or payable by such Secured Party or required to be withheld or deducted from a payment to such Secured Party and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate describing in reasonable detail the amount of, and basis for asserting, such payment or liability delivered to the Borrowers by a Secured Party shall be conclusive absent manifest error.

&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)As soon as practicable after the date of any payment of Taxes by the Borrowers to a Governmental Authority pursuant to this <u>Section 11.03</u>, the Borrowers will furnish to the Required Lenders the original or a certified copy of a receipt issued by the relevant Governmental Authority evidencing payment thereof (or a copy of the return reporting such payment or other evidence of such payment as may be reasonably satisfactory to the Required Lenders).

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&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)If any payment is made by the Borrowers to or for the account of any Secured Party after deduction for or on account of any Taxes, and an indemnity payment or additional amounts are paid by the Borrowers pursuant to this <u>Section 11.03</u>, then, if such Secured Party, in its sole discretion exercised in good faith, determines that it has received a refund of such Taxes, such Secured Party shall reimburse to the Borrowers (without interest) such amount of any refund received (but only to the extent of indemnity payments made under this <u>Section 11.03</u> with respect to the Taxes giving rise to such refund and only net of reasonable out-of-pocket expenses incurred, including Taxes) as such Secured Party shall determine in its sole discretion to be attributable to the relevant Taxes; <u>provided</u> that, in the event that such Secured Party is required to repay such refund to the relevant Governmental Authority, the Borrowers agree to return the refund (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Secured Party. Notwithstanding anything to the contrary in this paragraph (f), in no event will the Secured Party be required to pay any amount to the Borrowers pursuant to this paragraph (f) the payment of which would place the Secured Party in a less favorable net after-Tax position than the 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.

&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)<u>Status of Secured Parties</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)Any Secured Party 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 Borrowers, at the time or times reasonably requested by the Borrowers, such properly completed and executed documentation reasonably requested by the Borrowers as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Secured Party, if reasonably requested by the Borrowers, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrowers as will enable the Borrowers to determine whether or not such Secured Party 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 paragraph (g)(ii)(A), (B) and (D) of this <u>Section 11.03</u>) shall not be required if in the Secured Party's reasonable judgment such completion, execution or submission would subject such Secured Party to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Each Secured Party that is a U.S. Person hereby agrees that it shall, before the Funding Effective Date or, in the case of a Secured Party which becomes a party hereto pursuant to <u>Section 12.01</u>, before the date upon which such Secured Party becomes a party hereto (and from time to time thereafter upon the reasonable request of the Borrowers), deliver to the Borrowers two copies of accurate, complete and executed IRS Form W-9 or successor form, certifying that such Secured Party is entitled to an exemption from United States backup withholding tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Each Secured Party that is not a U.S. Person (a "<u>Non-U.S. Lender</u>") shall, to the extent it is legally entitled to do so, before the date on which such Secured Party becomes a party hereto pursuant to <u>Section 12.01</u> (and from time to time thereafter upon the reasonable request of the Borrowers), deliver to the Borrowers, 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;&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)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 hereunder or under any other Facility Document, two copies of properly completed and duly executed IRS Form W-8BEN or IRS Form W-8BEN-E (or any subsequent versions thereof or successors thereto) 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

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other applicable payments hereunder or under any other Facility Document , two copies of properly completed and duly executed IRS Form W-8BEN or IRS Form W-8BEN-E (or any subsequent versions thereof or successors thereto) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business" profits or "other income" article of such treaty, with respect to any other applicable payments 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;&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)two copies of properly completed and duly executed IRS 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;&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)in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 871(h) or 881(c) of the Code, (x) two copies of a certificate substantially in the form of <u>Exhibit G-1</u> hereto 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" (within the meaning of Section 871(h)(3)(B) of the Code) of any Borrower, or a "controlled foreign corporation" related to any Borrower (within the meaning of Section 881(c)(3)(C) of the Code) (a "<u>U.S. Tax Compliance Certificate</u>"), and (y) two copies of properly completed and duly executed IRS Form W-8BEN or IRS Form W-8BEN-E; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)to the extent a Non-U.S. Lender is not the beneficial owner, two copies of properly completed and duly executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit G-2</u> or <u>Exhibit G-3</u>, IRS Form W-9, or other certification documents from each beneficial owner; <u>provided</u> 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 substantially in the form of <u>Exhibit G-4</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower, before the date on which such Non-U.S. Lender becomes a party to this Agreement and before the date, if any, such Non-U.S. Lender designates a new lending office (and, in each case, as promptly as practicable after receipt of a written request therefor from the Borrowers), copies of any other properly completed and duly executed form prescribed by Applicable Law as a basis for claiming exemption from, or a reduction of, U.S. federal withholding Tax, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to determine the withholding or deduction required to be made; 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;(D)if a payment made to a Lender under this Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrowers at the time or times prescribed by law and at such time or times reasonably requested by the Borrowers 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 Borrowers or any Agent as may be necessary for the Borrowers 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, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Each Secured Party agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrowers in writing of its legal inability to do so.

&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)On or before the date of this Agreement, to the extent copies thereof have not previously been so delivered, each Approved Account Bank shall deliver to the Lead Borrower, two duly executed copies of either (i) IRS Form W-9 (or any subsequent versions thereof or successors thereto) or (ii) IRS Form W-8IMY (or any subsequent versions thereof or successors thereto) certifying that it is a "U.S. branch" of a foreign bank and evidencing its agreement with the Lead Borrower to be treated as a U.S. Person with respect to payments made to it by any 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;(h)If any Secured Party requires the Borrowers to pay any additional amount to such Secured Party or any Governmental Authority for the account of such Secured Party or to indemnify such Secured Party pursuant to this Section <u>11.03</u>, then such Secured Party shall 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 would eliminate or reduce amounts payable pursuant to this <u>Section 11.03</u> in the future and would not subject such Secured Party to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Secured Party. The Borrowers hereby agree 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Nothing in this <u>Section 11.03</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 Borrowers 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;(j)Each Agent and each Lender hereby agrees to treat the Advances as debt for U.S. federal, state and local income and franchise tax purposes and will take no contrary position except to the extent that a "determination" is made within the meaning of Section 1313(a) of the Code (or an analogous provision of other Law) that the Advances may not be treated as debt for such 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;(k)<u>Survival</u>. Each party's obligations under this <u>Section 11.03</u> shall survive the resignation or replacement of any Agent or any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all amounts owing under any Facility Document.

**Section 11.04<u>Costs and Expenses; Indemnification</u>**. (a) Each Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of each Agent, the Manager, the Lenders and each other Secured Party in connection with the preparation, review, negotiation, reproduction, execution and delivery of this Agreement and the other Facility Documents, including the reasonable fees and disbursements of outside counsel for each Agent and any auditors, accountants, consultants, appraisers and rating agency or other professional advisors and agents engaged by any Agent; UCC filing fees and all other related fees and expenses in connection therewith; and in connection with any modification or amendment of this Agreement or any other Facility Document. Further, each Borrower shall pay (A) all reasonable and documented out-of-pocket costs and expenses (including all reasonable and documented fees, expenses and disbursements of legal counsel), and any auditors, accountants, consultants or appraisers or other professional advisors and agents engaged by any Agent and incurred by any Agent in the preparation, execution, delivery, filing, recordation, administration, performance or enforcement of this Agreement or any other Facility Document or any consent, amendment, waiver or other modification relating thereto, (B) all reasonable out-of-pocket costs and expenses (including all reasonable and documented fees, expenses and disbursements of legal counsel) of creating, perfecting, releasing or enforcing the Collateral Agent's security interests in the Collateral, including filing and recording fees, expenses and Other Taxes, search fees, and title insurance premiums, and (C) after the occurrence of any Event of Default, all costs and expenses incurred by the Agents and the other 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 any Agent and the other 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

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proceeding, including all reasonable and documented fees and disbursements of attorneys, accountants, auditors, consultants, appraisers and other professionals engaged by any Agent or the other Secured Parties. The undertaking in this Section shall survive repayment of the Obligations, any foreclosure under, or modification, release or discharge of, any or all of the Collateral Documents, termination of this Agreement and the other Facility Documents and the resignation or replacement of any Agent. Without prejudice to its rights hereunder, the expenses and the compensation for the services of each Agent are intended to constitute expenses of administration under any applicable bankruptcy 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;(a)Each 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 "<u>Indemnified Party</u>") from and against any and all claims, damages, losses, liabilities, obligations, expenses, penalties, actions, suits, judgments and disbursements of any kind or nature whatsoever (including the reasonable and documented fees and disbursements of counsel) 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 Collateral Document or any transaction contemplated hereby or thereby (and regardless of whether or not any such transactions are consummated) (collectively, the "<u>Indemnified Liabilities</u>"), including any such Indemnified 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 Collateral Document or any of the transactions contemplated hereby or thereby; (ii) any breach of any covenant by any Loan Party contained in any Facility Document; (iii) any representation or warranty made or deemed made by any Loan Party contained in any Facility Document or in any certificate, statement or report delivered in connection therewith is false or misleading; (iv) any failure by any Loan Party 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 first priority security interest in all of the Collateral free and clear of all Liens; (vi) any action or omission, not expressly authorized by the Facility Documents, by any Loan Party or any Affiliate of any Borrower which has the effect of reducing or impairing the Collateral or the rights of any Agent or the Secured Parties with respect thereto; (vii) the failure to file, or any delay in filing, financing statements, continuation statements 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 of an Obligor to the payment with respect to any Collateral not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms, or any other claim resulting from any related property; (ix) the commingling of Collections on the Collateral at any time with other funds; (x) any failure by any Loan Party to give reasonably equivalent value in connection with any acquisition or other transfer of assets by or to such Borrower, 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; and (xi) any Unmatured Event of Default or Event of Default; <u>provided</u> that the Borrowers shall not be liable to the extent any such Indemnified Liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party's fraud, bad faith, gross negligence or willful misconduct; <u>provided</u>, however that in no event will such Indemnified Party have any liability for any special, exemplary, indirect, punitive or consequential damages in connection with or as a result of such Indemnified Party's activities related to this Agreement or any Facility Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein; <u>provided</u>, <u>further</u>, that any payment hereunder which relates to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim, or additional sums described in <u>Sections 2.11</u> or <u>2.12</u>, shall not be covered by this <u>Section 11.04(b)</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)All amounts due under this <u>Section 11.04</u> shall be paid (or reserved for in a Restricted Borrower Account for payment on the following Payment Date) not later than three (3) Business Days after demand therefor.

**Section 11.05<u>Execution in Counterparts</u>**. This Agreement 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,

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shall constitute but one and the same Agreement. Delivery of an executed signature page of this Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof. The parties hereto agree that "execution," "signed," "signature," and words of like import in this Agreement shall be deemed to include electronic signatures, authentication, or the keeping of records in electronic form (including deliveries by facsimile, emailed or any other electronic means that reproduces an image of an actual executed signature page), 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 record keeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Electronic Signatures in Global and National Commerce Act, the Uniform Electronic Transactions Act as in effect in any state, the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), the Illinois Electronic Commerce Security Act (5 ILCS 175/1-101 et seq.), or the Uniform Commercial Code, and the parties hereto hereby waive any objection to the contrary.

**Section 11.06<u>Assignability</u>**. No Borrower may assign its rights or obligations hereunder or any interest herein without the prior written consent of the Administrative Agent (acting at the written direction of the Required Lenders). The Lenders may assign their rights, interests or obligations under this Agreement as permitted under <u>Section 12.01</u>. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns (including by operation of law).

**Section 11.07<u>Governing Law</u>**. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

**Section 11.08<u>Severability of Provisions</u>**. Any provision of this Agreement 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 11.09<u>Confidentiality</u>**. Each Secured Party agrees to keep confidential all Borrower Information; <u>provided</u> 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 of a Secured Party, or (y) any of their respective Affiliates, employees, directors, agents, representatives, consultants, attorneys, accountants and other professional advisors with the need to know such information for a purpose hereunder or in connection with this Agreement or the other Facility Documents (collectively, the "<u>Secured Party Representatives</u>"), it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Borrower Information, (b) subject to an agreement to comply with the provisions of this Section (or other provisions at least as restrictive as this Section), (i) 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, (ii) to any prospective agent or co-agent of any Agent, (iii) as reasonably required by any direct or indirect contractual counterparties or professional advisors thereto, to any swap or derivative transaction relating to the Borrowers and the Obligations, and (iv) to any provider of credit protection to a Lender or any provider of a hedge for the benefit of a Lender, (c) to any Governmental Authority having 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 or requested to be disclosed pursuant to any Applicable Law, (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 in violation hereof, (f) any rating agency or a nationally recognized statistical rating organization in connection with Rule 17g-5 promulgated by the SEC, (g) in connection with the exercise of any remedy hereunder or under any other Facility Document and (h) to the other parties to the Facility Documents in connection with the administration of this credit facility or the enforcement of the Facility Documents, (i) by a Conduit Lender (or Committed Lender on its behalf) to (x) its Program Support Providers and (y) any trustee or collateral agent for the benefit of the holders of the commercial paper notes or other senior indebtedness of a Conduit Lender appointed pursuant to such Conduit Lender's program documents (after obtaining such Person's agreement to keep such confidential information confidential in a manner substantially similar to this Section 11.09), (j) to any rating agency providing a rating for any Conduit Lender's debt and (k) to any Person acting as a

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placement agent, dealer or investor Conduit Lender's commercial paper (provided that any confidential information provided to any such placement agent, dealer or investor does not reveal the identity of the Borrower or any of their Affiliates and is confined to information of the type that is typically provided to such entities by asset-backed commercial paper conduits). In addition, each Secured Party may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Secured Parties in connection with the administration and management of this Agreement and the other Facility Documents.

**Section 11.10<u>Merger</u>**. This Agreement and the other Facility Documents executed by the Administrative Agent, the Collateral Agent or the Lenders taken as a whole incorporate the entire agreement between the parties thereto concerning the subject matter thereof and such Facility Documents supersede any prior agreements among the parties relating to the subject matter thereof.

**Section 11.11<u>Survival</u>**. 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 2.11</u>, <u>2.12</u>, <u>2.15</u>, <u>7.07(b)</u>, <u>8.04(h)</u>, <u>10.03</u>, <u>10.04</u>, <u>10.07</u>, <u>11.02</u>, <u>11.03</u>, <u>11.04</u>, <u>11.07</u>, <u>11.08</u>, <u>11.12</u>, <u>11.13</u>, <u>11.14</u>, <u>11.16</u>, <u>11.18</u> and <u>11.19</u> and this Section <u>11.11</u> shall survive the termination of this Agreement in whole or in part and the payment in full in cash of the principal of and interest on the Advances.

**Section 11.12<u>Submission to Jurisdiction; Waivers; Etc</u>**. Each party hereto hereby irrevocably and unconditionally:

&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)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 exclusive general jurisdiction of the courts of the State of New York located in the County of New York, the courts of the United States of America for the Southern District of New York, and the appellate courts of any of them;

&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)consents that any such action or proceeding may be brought in any court described in <u>Section 11.12(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)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 party at its address referenced in <u>Section 11.02</u> or at such other address as may be permitted 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;(d)agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by 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;(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 party hereto or any Secured Party arising out of or relating to this Agreement or any other Facility Document any special, exemplary, indirect, punitive or consequential damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement).

**Section 11.13<u>Waiver of Jury Trial</u>**. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FACILITY DOCUMENT OR FOR ANY COUNTERCLAIM THEREIN OR RELATING THERETO.

**Section 11.14<u>Service of Process</u>**. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF PROCESS AND IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN <u>SECTION 11.02</u>. NOTHING IN THIS

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AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

**Section 11.15<u>Waiver of Setoff</u>**. Each Borrower 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 11.16<u>PATRIOT Act Notice</u>**. Each Lender and each Agent hereby notifies the Borrowers 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 "<u>PATRIOT Act</u>"), it is required to obtain, verify and record information that identifies each Borrower, which information includes the name and address of such Borrower and other information that will allow the Lenders to identify such Borrower in accordance with the PATRIOT Act. Each Borrower shall provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by any Lender or any Agent in order to assist such Lender or such Agent in maintaining compliance with the PATRIOT Act.

**Section 11.17<u>Business Days</u>**. In the event that the date of any Payment Date, Optional Prepayment Date or Final Maturity Date shall not be a Business Day, then notwithstanding any other provision of this Agreement or any 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, Optional Prepayment Date 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 11.18<u>Third-Party Beneficiary</u>**. The parties hereto acknowledge and agree that each Approved Account Bank, the Indemnified Parties and the Affected Persons are third party beneficiaries of this Agreement.

**Section 11.19<u>No Fiduciary Duty</u>**. Each Agent, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the "<u>Creditors</u>"), may have economic interests that conflict with those of a Loan Party or its Affiliates. Each Borrower agrees that nothing in the Facility Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Creditor, on the one hand, and any Borrower, its stockholders or its Affiliates, on the other. Each Borrower acknowledges and agrees that (i) the transactions contemplated by the Facility Documents (including the exercise of rights and remedies hereunder and thereunder) are arm's-length commercial transactions between the Creditors, on the one hand, and the Borrowers, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Creditor has assumed an advisory or fiduciary responsibility in favor of any Borrower, its stockholders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Creditor has advised, is currently advising or will advise any Borrower, its stockholders or its Affiliates on other matters) or any other obligation to any Borrower except the obligations expressly set forth in the Facility Documents and (y) each Creditor is acting solely as principal and not as the agent or fiduciary of any Borrower, its management, stockholders, creditors or any other Person. Each Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. Each Borrower agrees that it will not claim that any Creditor has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to any Borrower, in connection with such transaction or the process leading thereto.

**Section 11.20<u>Acknowledgement Regarding Any Supported QFCs</u>**. To the extent that the Facility Documents provide support, through a guarantee or otherwise, for Hedging Agreements or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>" and each such QFC a "<u>Supported QFC</u>"), 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>U.S. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with this <u>Section 11.20</u> 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 or of the U.S.

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or any other state of the U.S.) that in the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") 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 U.S. or a state of the U.S. 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 U.S. or a state of the U.S.

**Section 11.21<u>Non-Recourse</u>**. Each Secured Party acknowledges that each Loan Party is required to be a special purpose entity and that none of the directors, officers, incorporators, shareholders, partners, agents or employees of a Loan Party shall be personally liable for any of the Obligations of such Loan Party under this Agreement. The Loan Parties' sole source of funds for payment of all amounts due hereunder shall be the Collateral. No recourse shall be had for the payment of any amount owing in respect of the Advances against a Person other than the Loan Parties for any other amounts payable in respect of the Obligations hereunder or under the other Facility Documents.

**Section 11.22<u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>**. 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 Affected Financial Institution arising under any Facility Document 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 party hereto 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 entity, 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

the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Article XII<br>ASSIGNMENT**

**Section 12.01<u>Assignments and Participations</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)<u>Conditions to Assignment by Lenders</u>. Except as provided herein, each Lender may assign all or any portion of its Commitment Amount or Advances and other rights and obligations under this Agreement to an Eligible Assignee; <u>provided</u> that (i) each such assignment shall be in a minimum principal amount of $1,000,000 (or, if less, the then outstanding amount of such Lender's

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Advances and/or Commitment Amount) or such lesser amount consented to by the Required Lenders, (ii) the parties to such assignment shall execute and deliver to Administrative Agent, for recording in the Register, an Assignment and Acceptance (with a copy to the Collateral Agent), (iii) with the prior written consent of the Lead Borrower (such consent not to be unreasonably withheld, it being understood that it shall be reasonable for the Lead Borrower to take into account the Business Objective) unless and until an Event of Default has occurred and is continuing and (iv) with the prior written consent of the Administrative Agent and the Collateral Agent (such consent to be given at the written direction of the Required Lenders and not to be unreasonably withheld) unless such assignment is to another Lender, a Conduit Assignee or an Affiliate of a Lender. The assignee, if it is not an existing Lender, shall deliver to the Administrative Agent (with a copy to the Collateral Agent) (x) its applicable tax documentation pursuant to <u>Section 11.03(g)(ii)</u>, and (y) all documentation and other information that the Administrative Agent or the Collateral Agent reasonably requests under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation Title III of the Patriot Act. Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment and Acceptance, (1) the assignee thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder, and (2) the assigning Lender shall, to the extent provided in such Assignment and Acceptance and upon payment to Administrative Agent of the registration fee referred to in this <u>Section 12.01(a)</u>, be released from its obligations 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;(b)In addition to its rights under Section 12.01(a), each Conduit Lender may at any time assign its rights in the Advances (and its rights hereunder and under the Facility Documents) to its related Committed Lender or its related Program Support Provider or any Affiliate of any of the foregoing. Furthermore, each Conduit Lender may at any time grant a security interest in and lien on, all or any portion of its interests under this Agreement, its Advances and all Facility Documents to (i) its related Committed Lender, (ii) its Managing Agent, (iii) any Program Support Provider who, at any time now or in the future, provides program liquidity or credit enhancement, including, without limitation, an insurance policy for such Conduit Lender relating to the Commercial Paper or the Advances, (iv) any other Person who, at any time now or in the future, provides liquidity or credit enhancement for the Conduit Lenders, including, without limitation, an insurance policy relating to the Commercial Paper or the Advances, (v) any collateral trustee or collateral agent for any of the foregoing or (vi) a trustee or collateral agent for the benefit of the holders of the commercial paper notes or other senior indebtedness of such Conduit Lender appointed pursuant to such Conduit Lender's program documents (provided that any such security interest shall not entitle the related secured party to any right to approve, veto, consent, waive or otherwise influence any approval, consent or waiver hereunder); provided, however, that any such security interest or lien shall be released upon assignment of its Advances to its related Committed Lender. In addition, each Conduit Lender may assign all or a portion of its Advances and its rights and obligations under this Agreement, and, in connection therewith, any other Facility Documents to which it is a party to a Conduit Assignee with respect to such Conduit Lender, without the prior written consent of the Borrower. Upon such assignment by a Conduit Lender to a Conduit Assignee, (i) such Conduit Assignee shall be the owner of Advances and the right to make future Advances or such portion thereof with respect to such Conduit Lender, (ii) the related administrative or managing agent for such Conduit Assignee will act as the Managing Agent for such Conduit Assignee hereunder, with all corresponding rights and powers, express or implied, granted to the Administrative Agent hereunder or under the other Facility Documents, (iii) such Conduit Assignee and its liquidity support provider(s) and credit support provider(s) and other related parties, in each case relating to the Commercial Paper and/or the Advances shall have the benefit of all the rights and protections provided to such Conduit Lender herein and in the other Facility Documents (including, without limitation, any limitation on recourse against such Conduit Assignee as provided herein) and (iv) if requested by the Managing Agent with respect to such Conduit Assignee, the parties will execute and deliver such further agreements and documents and take such other actions as the Managing Agent may reasonably request to evidence and give effect to the foregoing. No assignment by any Conduit Lender to a Conduit Assignee of all or any portion of the Advances with respect to such Conduit Lender shall in any way diminish the obligation of the related Committed Lenders to such conduit lender to fund any Advances not funded by such Conduit Lender or such Conduit Assignee.

&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)<u>Register</u>. The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrowers, shall maintain in a register for the recordation of the names and addresses of the

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Lenders and the Commitment Amounts and the principal amount of (and corresponding interest amounts on) advances of each Lender from time to time (the "<u>Register</u>"). The Borrowers, Administrative Agent, the Collateral Agent and Lenders shall deem and treat the Persons listed as Lenders in the Register as the holders and owners of the corresponding Commitment Amounts and Advances listed therein for all purposes hereof, and no assignment or transfer of any such Commitment Amount or Advance shall be effective, in each case, unless and until an Assignment and Acceptance effecting the assignment or transfer thereof shall have been delivered to and accepted by Administrative Agent and recorded in the Register. Prior to such recordation, all amounts owed with respect to the applicable Commitment Amount or Advance shall be owed to the Lender listed in the Register as the owner thereof, and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is listed in the Register as a Lender shall be conclusive and binding on any subsequent holder, assignee or transferee of the corresponding Commitment Amount or Advance. Promptly following its receipt of an Assignment and Acceptance executed by the parties to such as the information contained therein in the Register.

&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)<u>Participation</u>. Notwithstanding anything contained herein to the contrary, any Lender may, from time to time an at any time, sell participations in all or any portion of such Lender's rights and obligations under this Agreement (including all or any portion of its Commitment Amount and the outstanding principal amount of Advances owing to it) to any financial institution that invests in loans other than a Competitor or a Disqualified Lender (or upon the occurrence and during the continuance of an Event of Default that has continued for more than 30 consecutive days, any financial institution that invests in loans selected by such Lender) (such Person, a "<u>Participant</u>"); <u>provided</u> that the terms of any such participation shall not entitle the Participant to direct such Lender as to the manner in which it votes in connection with any amendment, supplement or other modification of this Agreement or any waiver or consent with respect to any departure from the terms hereof, in each case unless and to the extent that the subject matter thereof is one as to which the consent of all Lenders is required in order to approve the same; <u>provided</u>, <u>further</u>, (A) such Lender's obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrowers, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any Lender that sells a participation hereunder shall, acting solely for this purpose as an agent of Borrower, maintain a register on which it enters the name and address of each participant and the principal amount of, and corresponding interest amount on, each participant's interest in the Advances, Commitment Amounts or other Obligations (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall be required to disclose or share the information contained in such Participant Register with Borrower or any other Person, except as required by law and to satisfy the requirements of Treasury regulations section 5f.103-1(c) and proposed Treasury regulations section 1.163-5. The entries in the Participant Register shall be conclusive in the absence of manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. The Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.11, 2.12 and 11.03 (subject to the limitations and requirements of such Sections, it being understood that the documentation required under Section 11.03(g) shall be delivered to the participating Lender) to the same extent as if it were a Lender and had acquired its interest by assignment; provided, however, that a Participant shall not be entitled to receive any greater payment under Section 2.11, 2.12 or 11.03, with respect to the participation sold to such Participant, than the applicable Lender would have been entitled to receive except to the extent such entitlement to a greater payment results from a Change in Law after the sale of the participation takes place.

&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)<u>Assignments by Agents</u>. Except to the extent its obligations hereunder and its interest in its Commitment Amount and Advances have been assigned pursuant to one or more Assignments and Acceptances, if an Agent is also a Lender, such Agent shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not such Agent, respectively. The Agents, the Lenders and their respective Affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, any Borrower, or any Affiliate of any Borrower and any Person who may do business with or own securities of any Borrower or any Affiliate of any Borrower, all as if they were not serving in such capacities hereunder and without any duty to account therefor to each other.

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&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)<u>[Reserved].</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;(g)<u>Pledge to Federal Reserve</u>. Notwithstanding any other provision set forth in this Agreement, any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including amounts owing to it in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System); <u>provided</u> that no such security interest or the exercise by the secured party of any of its rights thereunder shall release such Lender from any of its funding obligations hereunder or substitute any such pledgee or assignee for such Lender as a party 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;(h)<u>Replacement Lender</u>. If any Lender requests compensation under Section 2.11 or <u>Section 11.03</u> and such Lender has declined or is unable to designate a different lending office in accordance with <u>Section 2.11(b)</u> or <u>Section 11.03(i)</u>, respectively, or if any Borrower is required to pay any amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to such sections or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Lead Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Article XII) all of its interests, rights and obligations under this Agreement and the related Facility Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)such 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 from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (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;&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 Section 2.11 or Section 11.03, 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;&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)in the case of any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Each party hereto agrees that (a) an assignment required pursuant to this <u>Section 12.01(h)</u> may be effected pursuant to an Assignment and Acceptance executed by the Borrowers, the Administrative Agent (at the written direction of the Required Lenders) and the assignee and (b) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender; provided, further that any such documents shall be without recourse to or warranty by the parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)(i)&nbsp;&nbsp;&nbsp;&nbsp;If any assignment or participation under this <u>Section 12.01</u> is made to any Disqualified Lender without the Borrowers' prior written consent (any such person, a "<u>Disqualified Person</u>"), then the Borrowers may, at their sole expense and effort, upon notice to the applicable Disqualified Person and the Required Lenders, (A) terminate any Commitment of such Disqualified Person and cause the Borrowers to repay all obligations of the Borrowers owing to such Disqualified Person, (B) in the case of any outstanding Advance held by such Disqualified Person, purchase such

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Advance by paying the lesser of (x) par and (y) the amount that such Disqualified Person paid to acquire such Advance, plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder and/or (C) require such Disqualified Person to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 12.01), all of its interests, rights and obligations under this Agreement to one or more Eligible Assignees; provided, that, in the case of clause (C), the applicable Disqualified Person has received payment of an amount equal to the lesser of (1) par and (2) the amount that such Disqualified Person paid for the applicable Advance, plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder from the Borrowers and the relevant assignment shall otherwise comply with this Section 12.01 (except that (x) no registration and processing fee shall be required with any assignment pursuant to this paragraph, and (y) no Assignment and Acceptance shall be required to be executed and delivered by the assignor in connection with such assignment. Nothing in this <u>Section 12.01(i)</u> shall be deemed to prejudice any right or remedy that the Borrowers may otherwise have at law or equity.

**Section 12.02<u>Limited Recourse</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)<u>Conduit Lenders</u>. Each of the parties hereto hereby covenants and agrees that it will not, prior to the date that is one year and one day after the payment in full of all Commercial Paper or other debt securities or instruments issued by a Conduit Lender, institute against, or join with any other Person in instituting against, such Conduit Lender, any bankruptcy, reorganization, arrangement, insolvency, examination or liquidation proceedings, or other proceedings under any federal or state (or any other jurisdiction with authority over such Conduit Lender) bankruptcy or similar law. In the event that any such party takes action in violation of this Section 12.02(a), such related Conduit Lender may file an answer with the bankruptcy court or otherwise properly contest or cause to be contested the filing of such a petition by any such party against such Conduit Lender or the commencement of such action and raise or cause to be raised the defense that such party has agreed in writing not to take such action and should be estopped and precluded therefrom and such other defenses, if any, as its counsel advises that it may assert. The obligations of the Conduit Lenders under this Agreement are solely the corporate obligations of the Conduit Lenders. No recourse shall be had for the payment of any amount owing in respect of this Agreement, including any obligation or claim arising out of or based upon this Agreement, against any stockholder, employee, officer, agent, director, member, affiliate or incorporator (or Person similar to an incorporator under state business organization laws) of any Conduit 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;(b)<u>Payments by Conduit Lender</u>. Notwithstanding any provisions contained in this Agreement to the contrary, no Conduit Lender shall be obligated to pay any fees, costs, indemnified amounts or expenses due pursuant to this Agreement ("Conduit Lender Amounts") other than in accordance with the order of priorities set out in such Conduit Lender's commercial paper program documents and all payment obligations of each Conduit Lender hereunder are contingent on the availability of funds received pursuant to this Agreement and in excess of the amounts necessary to pay its commercial paper notes; provided, however, that each Committed Lender shall pay any Conduit Lender Amounts, on behalf of any related Conduit Lender, as and when due hereunder, to the extent that such Conduit Lender is precluded by its commercial paper program documents from paying such Conduit Lender Amounts in accordance with this Agreement. Any such amount which any Conduit Lender does not pay pursuant to the operation of the preceding sentence shall not constitute a claim against or corporate obligation of such Conduit Lender for any such insufficiency unless and until funds received pursuant to this Agreement and are available for the payment of such amounts as aforesaid.

**Article XIII<br>GUARANTY**

**Section 13.01<u>Guaranty</u>**.

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&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)(i) Subject to this Article XIII, each Loan Party hereby, jointly and severally, irrevocably and unconditionally, as primary obligor and not merely as surety, guarantees to each Secured Party and its successors and assigns, irrespective of the validity and enforceability of this Agreement or any of the Obligations from time to time owing to the Secured Parties by any Loan Party under any Facility Document, in each case strictly in accordance with the terms thereof (such obligations, including any future increases in the amount thereof, being herein collectively called the "<u>Guaranteed Obligations</u>"), (x) the full and punctual payment in full in cash of the Guaranteed Obligations when due, whether at stated maturity, by required prepayment, upon acceleration declaration, acceleration, demand, or otherwise including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a) and (y) in the case of any extension in time of repayment or renewal of this Agreement or the other Facility Documents or any of the Guaranteed Obligations, the full in cash and punctual payment of the Guaranteed Obligations in accordance with the terms of such extension or renewal, whether at stated maturity, upon acceleration or otherwise. Failing the payment of any of the Guaranteed Obligations in full when due for whatever reason, each Loan Party shall be, jointly obligated to immediately pay the amount not so paid. Each Loan Party agrees that this is a guarantee of payment and performance and not a guarantee of collection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Loan Party hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of this Agreement or the other Facility Documents, the absence of any action to enforce this Agreement or the other Facility Documents, any waiver or consent by the Administrative Agent or any Secured Party with respect to any provisions hereof or thereof, the recovery of any judgment against any other Loan Party, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Loan Party. Each Loan Party hereby (x) waives (to the maximum extent permitted by applicable law) diligence, presentment, demand of payment, filing of claims with a court in the event of any Insolvency Event involving any other Loan Party, any right to require a proceeding first against such Loan Party, protest, notice and all demands whatsoever and (y) covenants that this Agreement shall not be discharged except by the full payment of the Obligations in accordance with the terms 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If any Secured Party is required by any court or otherwise to return any payment in respect of the Guaranteed Obligations to any Loan Party or any custodian, trustee, liquidator or other similar official acting in relation to any Loan Party, the Guaranties, to the extent theretofore discharged, shall be reinstated in full in respect thereto in full force and 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Each Loan Party agrees that it shall not be entitled to any right of subrogation in relation to the Secured Parties in respect of any of the Guaranteed Obligations. Each Loan Party further agrees that, as between the Loan Parties, on the one hand, and the Administrative Agent and the Secured Parties, on the other hand, (x) the maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as provided in Article VI for the purposes of its Guaranty, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guaranteed Obligations and (y) in the event of any declaration of acceleration of the Guaranteed Obligations as provided in Article VI, such Guaranteed Obligations (whether or not due and payable at such time) shall forthwith become due and payable by such Loan Party for the purpose of its Guaranty. Each Loan Party shall have the right to seek contribution from any nonpaying Loan Party so long as the exercise of such right does not impair the rights of the Secured Parties 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Each Guaranty shall remain in full force and effect and continue to be effective should any petition be filed by or against any Loan Party for liquidation, reorganization, should any Loan Party become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of the assets of any Loan Party, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be. If, at any time, any payment of the Guaranteed Obligations is rescinded or reduced in any amount, or must otherwise be restored or returned by any obligee, whether as a "voidable preference", "fraudulent transfer" or otherwise, the Guaranteed Obligations shall, to the fullest extent permitted by law, be reinstated as though such

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payment had been due but not made at such time and reduced only by such amount paid and not so rescinded, reduced, restored or returned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Each Guaranty shall be a general secured senior obligation of each Loan Party and shall rank senior in right of payment with all existing and future Indebtedness of such Loan Party, if any.

&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>Right of Set-Off</u>. Each payment to be made by a Loan Party in respect of its Guaranty shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. If any Guaranteed Obligation is not paid promptly when due (subject to any applicable grace periods), each of the Secured Parties and their respective Affiliates is authorized, to the fullest extent permitted by law, to set-off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, and other obligations at any time owing, by such Secured Party or its Affiliate to, or for the credit or account of, any Loan Party against the obligations of such Loan Party under its Guaranty, irrespective of whether or not such Secured Party shall have made any demand thereunder and although such obligations may be unmatured. The rights of each Secured Party under this Section 13.01(b) are in addition to all other rights and remedies (including other rights of set-off) that such Secured Party may have.

&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)<u>Limitation on Guarantor Liability</u>. Each Loan Party and each Secured Party hereby confirms that it is the intention of all such parties that the Guaranty of such Loan Party not constitute a fraudulent transfer or fraudulent conveyance, or similar limitation, for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Guaranty. To effectuate the foregoing intention, the Administrative Agent, the Secured Parties and the Loan Parties hereby irrevocably agree that the obligations of each Loan Party shall be limited to the maximum amount as shall, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Loan Party that are relevant under such laws and after giving effect to any collections from the rights to receive contribution from or payments made by or on behalf of any other Loan Party in respect of the obligations of such other Loan Party under this Agreement, result in the obligations of such Loan Party under its Guaranty not constituting a fraudulent transfer or fraudulent conveyance, or similar limitation, under applicable law. Each Loan Party that makes a payment under its Guaranty shall be entitled upon payment in full in cash of all Guaranteed Obligations under this Agreement to a contribution from each other Loan Party in an amount equal to such other Loan Party's pro rata portion of such payment based on the respective net assets of all of the Loan Parties at the time of such payment determined in accordance with GAAP.

&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)<u>Subrogation</u>. Each Loan Party shall be subrogated to all of the rights of the Secured Parties against the Loan Parties in respect of any amounts paid by such Loan Party pursuant to the provisions of this Agreement; <u>provided</u> that, if an Event of Default or Unmatured Event of Default has occurred and is continuing, no Loan Party shall be entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation.

&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)<u>Continuing Guarantee</u>. Each Guaranty is a continuing guarantee, shall be binding on the relevant Loan Party and its successors and assigns, and shall be enforceable by the Administrative Agent or the Secured Parties, as set forth herein. If all or a part of any Secured Party's interest in any Guaranteed Obligation is assigned or otherwise transferred, the transferor's rights under the Guaranty, to the extent applicable to the Guaranteed Obligation so transferred, shall automatically be transferred with such Guaranteed Obligation.

[SIGNATURE PAGES TO FOLLOW]

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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.

BEETHOVEN FINANCING 1, LLC, as Initial Borrower

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Paul M. Robinson

Title: Vice President and Secretary

BEETHOVEN HOLDINGS 1, LLC, as Initial SPV Guarantor

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Paul M. Robinson

Title: Vice President and Secretary

[Bain Warner JVCo – Signature Pages to Credit Agreement]

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THE BANK OF NEW YORK MELLON, as Administrative Agent

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Natalie Santoriello&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Natalie Santoriello

Title: Agent

THE BANK OF NEW YORK MELLON, as Collateral Agent

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Natalie Santoriello&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Natalie Santoriello

Title: Agent

FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender and Joint Lead Arranger

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Sergey Gevorgyan&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Sergey Gevorgyan

Title: Principal

GOLDMAN SACHS BANK USA, as a Lender and Joint Lead Arranger

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;/s/ Jonathan Abraham&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Jonathan Abraham

Title: Authorized Signatory

[Bain Warner JVCo – Signature Pages to Credit Agreement]

## Exhibit 10.6

**Exhibit 10.6**

**EXECUTION VERSION**

**CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND IS THE TYPE THAT THE REGISTRANT TREATS AS PRIVATE OR CONFIDENTIAL. [\*\*\*] INDICATES THAT THE INFORMATION HAS BEEN REDACTED.**

<u>FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT</u>

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT, dated as of July 16, 2025 (this "<u>Amendment</u>") to the Credit and Security Agreement, dated as of June 29, 2025 (the "<u>Existing Credit Agreement</u>" and, the Existing Credit Agreement as amended by this Amendment and as may be further amended, restated, supplemented or otherwise modified and in effect from time to time, the "<u>Credit Agreement</u>"), by and among BEETHOVEN FINANCING 1, LLC, a Delaware limited liability company, as borrower (together with its permitted successors and assigns, the "<u>Initial Borrower</u>"), the ADDITIONAL BORROWERS from time to time party thereto, BEETHOVEN HOLDINGS 1, LLC, a Delaware limited liability company, as guarantor (together with its permitted successors and assigns, the "<u>Initial SPV Guarantor</u>"), FIFTH THIRD BANK, NATIONAL ASSOCIATION and GOLDMAN SACHS BANK USA (individually, each, a "<u>Joint Lead Arranger</u>" and, collectively, the "<u>Joint Lead Arrangers</u>"), the ADDITIONAL GUARANTORS from time to time party thereto, the commercial paper conduits from time to time party thereto as Conduit Lenders, each of the financial institutions from time to time party thereto as Committed Lenders, the conduit managing agents from time to time party thereto as managing agents, THE BANK OF NEW YORK MELLON, as administrative agent for the Lenders (in such capacity, together with its successors and assigns, the "<u>Administrative Agent</u>"), and THE BANK OF NEW YORK MELLON, as collateral agent for the Secured Parties (in such capacity, together with its successors and assigns, the "<u>Collateral Agent</u>" and, together with the Administrative Agent, the "<u>Agents</u>").

<u>R</u> <u>E</u> <u>C</u> <u>I</u> <u>T</u> <u>A</u> <u>L</u> <u>S</u>

WHEREAS, the Initial Borrower, the Initial SPV Guarantor, the Lenders, the Administrative Agent, the Collateral Agent and the Joint Lead Arranger are parties to the Existing Credit Agreement;

WHEREAS, the Initial Borrower and the Required Lenders desire to enter into, execute and deliver, and to direct the Agents (as applicable) to enter into, execute and deliver, this Amendment in compliance with the terms of the Existing Credit Agreement;

WHEREAS, the Agents (at the direction of the Required Lenders) and the Required Lenders, by their signatures below, consented to the entry into this Amendment.

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NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Initial Borrower, the Agents and the Required Lenders hereby agree as follows:

<u>A G R E E M E N T S</u>

SECTION 1.<u>Defined Terms</u>. Capitalized terms used and not otherwise defined herein (including the preamble and recitals hereto) shall have the meanings specified in the Credit Agreement.

SECTION 2.<u>Amendments to the Existing Credit Agreement</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)As of the date hereof, the Existing Credit Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the bold and double-underlined text (indicated textually in the same manner as the following example: **<u>bold and double-underlined text</u>**) as set forth in the conformed Credit Agreement attached as <u>Exhibit A</u> 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;(b)Except as expressly set forth in this Amendment, the Exhibits and Schedules to the Existing Credit Agreement shall be the Exhibits and Schedules to the Credit Agreement and on and after the date hereof, unless otherwise specified, any reference to "Credit Agreement" in the Exhibits and/or Schedules and/or Transaction Documents included in the Credit Agreement shall be a reference to the Credit Agreement, as amended, amended and restated, supplemented or otherwise modified from time to time.

SECTION 3.<u>Consents and Direction</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 Administrative Agent and the Collateral Agent (upon direction as set forth in subsection (b) below and the certification set forth in Section 5 below) hereby consent to the amendments contemplated by the Credit 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;(b)The undersigned Lenders, which constitute the Required Lenders, hereby direct the Administrative Agent and the Collateral Agent to consent to the amendments contemplated by the Credit Agreement and to execute and deliver this Amendment.

SECTION 4.<u>Conditions to Effectiveness</u>. This Amendment shall become effective as of the date hereof only upon the satisfaction of all of the following conditions precedent (the date of satisfaction of such conditions being referred to herein as the "<u>First Amendment Effective Date</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)<u>Execution</u>. The Administrative Agent and the Collateral Agent shall have received a counterpart of this Amendment, executed and delivered by a duly authorized officer of each of the Initial Borrower and the Required Lenders, in each case, in form and substance reasonably satisfactory to the Administrative 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;(b)<u>Representations and Warranties</u>. The representations and warranties contained in Section 4.01 of the Credit Agreement shall be true and correct in all material respects on and as of the First Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date.

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SECTION 5.<u>Certification of the Initial Borrower</u>.

By its signature hereto, the Initial Borrower hereby certifies to each Agent that this Amendment is authorized or permitted by the Existing Credit Agreement and that all conditions precedent to the execution of this Amendment have been complied with.

SECTION 6.<u>Reference to and Effect on the Credit Agreement and the other Transaction Documents; Ratification</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)This Amendment shall constitute a Facility Document for purposes of the Credit Agreement and, on and after the First Amendment Effective Date, each reference in the Credit Agreement to "this Agreement", "hereunder", "hereof", "herein" or words of like import referring to the Credit Agreement, and each reference in the other Facility Documents or any other agreement to "the Credit Agreement", "thereunder", "thereof" or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended hereby.

&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)Except as specifically amended above, the Existing Credit Agreement is and shall continue to be in full force and effect and is hereby ratified and confirmed 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;(c)The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any party hereto under the Credit Agreement, or constitute a waiver of any provision of any other agreement.

SECTION 7.<u>Execution in Counterparts; Electronic Execution</u>. 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 Amendment. 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 parties hereto agree that "execution," "signed," "signature," and words of like import in this Amendment shall be deemed to include electronic signatures, authentication, or the keeping of records in electronic form (including deliveries by facsimile, emailed or any other electronic means that reproduces an image of an actual executed signature page), 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 record keeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Electronic Signatures in Global and National Commerce Act, the Uniform Electronic Transactions Act as in effect in any state, the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), the Illinois Electronic Commerce Security Act (5 ILCS 175/1-101 et seq.), or the Uniform Commercial Code, and the parties hereto hereby waive any objection to the contrary..

SECTION 8.<u>Governing Law</u>. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

SECTION 9.<u>Captions</u>. The captions in this Amendment are for convenience of reference only and shall not affect the construction hereof or thereof.

[Signature page follows]

\|US-DOCS\161499384.7\|\|

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first above written.

BEETHOVEN FINANCING 1, LLC, as Initial Borrower

By: <u>/s/ Paul M. Robinson&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name: Paul M. Robinson

Title: Vice President and Secretary

[*Signature Page to First Amendment to Credit and Security Agreement*]

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*Acknowledged, agreed and consented to by:*

THE BANK OF NEW YORK MELLON,

as Administrative Agent

By: <u>/s/ Natalie Santoriello&nbsp;&nbsp;&nbsp;&nbsp;__________</u>

Name: Natalie Santoriello

Title: Agent

THE BANK OF NEW YORK MELLON,

as Collateral Agent

By: <u>/s/ Natalie Santoriello&nbsp;&nbsp;&nbsp;&nbsp;____________</u>

Name: Natalie Santoriello

Title: Agent

\|US-DOCS\161499384.7\|\|

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GOLDMAN SACHS BANK USA,

as a Lender and as the "Required Lenders"

By: <u>/s/ Brian Levin&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;________</u>

Name: Brian Levin

Title: Authorized Signatory

\|US-DOCS\161499384.7\|\|

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EXHIBIT A

AMENDED CREDIT AGREEMENT

[*See attached*]

\|US-DOCS\161499384.7\|\|

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*<u>Execution Version</u>***<u>(Conformed through First Amendment</u>**

**<u>dated as of July 16, 2025)</u>**

CREDIT AND SECURITY AGREEMENT

among

BEETHOVEN FINANCING 1, LLC,

as Initial Borrower,

THE ADDITIONAL BORROWERS FROM TIME TO TIME PARTIES HERETO,

BEETHOVEN HOLDINGS 1, LLC,

as Initial SPV Guarantor,

FIFTH THIRD BANK, NATIONAL ASSOCIATION,<br>as Joint Lead Arranger,

GOLDMAN SACHS BANK USA,

as Joint Lead Arranger,

THE ADDITIONAL GUARANTORS FROM TIME TO TIME PARTIES HERETO,

THE LENDERS FROM TIME TO TIME PARTIES HERETO,

THE BANK OF NEW YORK MELLON,<br>as Administrative Agent,

and

THE BANK OF NEW YORK MELLON,<br>as Collateral Agent

Dated as of June 29, 2025

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**TABLE OF CONTENTS**

**Page**

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**<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;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

**SCHEDULES**

SCHEDULE 1 —&nbsp;&nbsp;&nbsp;&nbsp;Lender Information

SCHEDULE 2 —&nbsp;&nbsp;&nbsp;&nbsp;Loan Party UCC and Notice Information

SCHEDULE 3 —&nbsp;&nbsp;&nbsp;&nbsp;Reporting Requirements

SCHEDULE 4 —&nbsp;&nbsp;&nbsp;&nbsp;Intellectual Property Collateral

**EXHIBITS**

EXHIBIT A&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Joinder Agreement

EXHIBIT B&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Release Request

EXHIBIT C&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Notice of Borrowing

EXHIBIT D&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Notice of Prepayment

EXHIBIT E&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Assignment and Acceptance

EXHIBIT F-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Copyright Security Agreement

EXHIBIT F-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Patent Security Agreement

EXHIBIT F-3&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Trademark Security Agreement

EXHIBIT G-1&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Lenders)

EXHIBIT G-2&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Participants)

EXHIBIT G-3&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Participants)

EXHIBIT G-4&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of U.S. Tax Compliance Certificate (Foreign Lenders)

EXHIBIT H&nbsp;&nbsp;&nbsp;&nbsp;—&nbsp;&nbsp;&nbsp;&nbsp;Form of Due Diligence Summary

i

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**CREDIT AND SECURITY AGREEMENT**, dated as of June 27, 2025, by and among BEETHOVEN FINANCING 1, LLC, a Delaware limited liability company, as borrower (together with its permitted successors and assigns, the "<u>Initial Borrower</u>"), the ADDITIONAL BORROWERS from time to time party hereto, BEETHOVEN HOLDINGS 1, LLC, a Delaware limited liability company, as guarantor (together with its permitted successors and assigns, the "<u>Initial SPV Guarantor</u>"), FIFTH THIRD BANK, NATIONAL ASSOCIATION and GOLDMAN SACHS BANK USA (individually, each, a "<u>Joint Lead Arranger</u>" and, collectively, the "<u>Joint Lead Arranger</u>"), the ADDITIONAL GUARANTORS from time to time party hereto, the commercial paper conduits from time to time party hereto as Conduit Lenders (as defined herein), each of the financial institutions from time to time party hereto as Committed Lenders (as defined herein), the conduit managing agents from time to time party hereto as managing agents (individually, each, a "<u>Managing Agent</u>" and, collectively, the "<u>Managing Agents</u>"), THE BANK OF NEW YORK MELLON, as administrative agent for the Lenders (in such capacity, together with its successors and assigns, the "<u>Administrative Agent</u>"), and THE BANK OF NEW YORK MELLON, as collateral agent for the Secured Parties (as hereinafter defined) (in such capacity, together with its successors and assigns, the "<u>Collateral Agent</u>").

**RECITALS**

WHEREAS, the Initial Borrower, together with each additional Borrower from time to time party hereto (collectively, the "<u>Borrowers</u>" and each, a "<u>Borrower</u>") intend to acquire certain Music Products and related assets from time to time and desire that the Lenders make advances on a committed basis to the Borrowers on the terms and subject to the conditions set forth in this Agreement in order to finance such acquisitions; and

WHEREAS, the Lenders have agreed to extend up to $500,000,000 in Commitment Amounts to the Borrowers (subject to increase in accordance with <u>Section 2.19</u>), the proceeds of which will be used to acquire, or refinance the acquisition of, Music Products and related assets;

WHEREAS, the Borrowers have agreed to secure their Obligations by granting to the Collateral Agent for the benefit of the Secured Parties, a first priority security interest in all of their respective assets;

WHEREAS, the Guarantors have agreed to guarantee the Obligations of the Borrowers and have agreed to secure such guarantees with a first priority security interest in all of their respective assets; and

WHEREAS, each Lender shall make such advances to the Borrowers 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:

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**Article I<br>DEFINITIONS; RULES OF CONSTRUCTION; COMPUTATIONS**

**Section 1.01<u>Definitions</u>**. As used in this Agreement, the following terms shall have the meanings indicated:

"<u>Access Investors</u>": collectively: [\*\*\*].

"<u>Account Control Agreement</u>" means each account control agreement among one or more Borrowers, the related Approved Account Bank and the Collateral Agent, as secured party, that confers "control" (within the meaning of the UCC) over one or more deposit accounts or securities accounts to the Collateral Agent.

"<u>Acquisition Account</u>" has the meaning specified in <u>Section 8.02(d)</u>.

"<u>Acquisition/Disposition LTV Ratio</u>" means, as of any Asset Acquisition Date or the date of any Asset Sale, the percentage equivalent of a fraction, (x) the numerator of which is the Funded Facility Amount as of such date on a *pro forma* basis after giving effect to any Borrowing or Optional Prepayment, as applicable, on such date and (y) the denominator of which is the Aggregate Collateral Value as of such date *minus* the Excess Concentration Amounts.

"<u>Administration Agreements</u>" means the contractual agreements under which the Music Publishing and Master Distribution Rights, Neighboring Rights, Writer's Share of Public Performance and proceeds therefrom are administered for the benefit of the Borrowers by the existing and future Administrators.

"<u>Administrative Agent</u>" has the meaning specified in the introduction to this Agreement.

"<u>Administrator</u>" means any Person primarily engaged in the business of administering any rights in any Music Product included in the assets of the Borrowers, including, without limitation, [\*\*\*], and any of their respective Affiliates, any other music publisher, administrator, label, distributor, performance rights organization or society or collection agent, licensing agent, or any other similar licensee or user of any Music Product.

"<u>Advance</u>" has the meaning specified in <u>Section 2.03</u>.

"<u>Affected Financial Institution</u>" means (a) any EEA Financial Institution or (b) any UK Financial Institution.

"<u>Affected Person</u>" means (a) each Lender and each of its Affiliates, and (b) any assignee or participant of any Lender.

"<u>Affiliate</u>" means, in respect of a referenced Person, another Person Controlling, Controlled by or under common Control with such referenced Person; <u>provided</u> that Persons shall not be deemed to be under common control (whether direct or indirect) solely by virtue of such Persons having a common financial sponsor.

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"<u>Affiliate Transaction</u>" has the meaning set forth in <u>Section 5.02(i)</u>.

"<u>Agent</u>" means each, either or both of the Administrative Agent and the Collateral Agent, as the context may require.

"<u>Aggregate Collateral Value</u>" means, as of any date of determination, an amount equal to the sum of the Appraised Collateral Values and Non-Appraised Collateral Values of all assets in the Facility Pool as of such date.

"<u>Agreement</u>" means this Credit and Security Agreement**<u>, as amended, restated, supplemented or otherwise modified from time to time</u>**.

"<u>Allocable Debt</u>" means, as of any date of determination with respect to any Music Product, the aggregate amount of outstanding Advances made with respect to such Music Product as of its Acquisition Date.

"<u>Annual Catalogue Appraisal</u>" has the meaning set forth in <u>Section 5.01(o)</u>.

"<u>Anti-Corruption Laws</u>" has the meaning set forth in <u>Section 5.02(v)</u>.

"<u>Applicable Law</u>" means any Law of any Governmental Authority, including all federal, state and local laws and of other local regulatory authorities, to which the Person in question is subject or by which it or any of its assets or properties are bound.

"<u>Applicable Margin</u>" means, with respect to any Term SOFR Advance, 2.00% or, with respect to any Base Rate Advance, 1.00%.

"<u>Appraisal</u>" means a valuation or appraisal (including all Annual Catalogue Appraisals) of the fair market value of the Music Products of the Borrowers prepared by an Approved Appraiser (together with all supporting assumptions and related models and attachments) that calculates the Appraisal Value of such Music Products in accordance with the Appraisal Requirements, which valuation or appraisal shall, for the avoidance of doubt, include the projected Consolidated Net Publisher/Net Label Share attributable to the Music Products for the next twelve month period immediately succeeding the twelve month period covered by such Appraisal.

"<u>Appraisal Requirements</u>" means requirements that will be satisfied with respect to an Appraisal and its calculation of the Appraisal Value for the relevant asset or assets if:

&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)such Appraisal has been conducted by an Approved Appraiser within sixty (60) days of the delivery of such Appraisal and delivered to the 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;(b)the related Appraisal Value calculation will assume a discount rate of at least the Required Discount Rate, as applied to the expected net cash flows projected to be received by the Borrowers in respect of such asset or assets for a forecast period of no longer than fifteen (15) years, with terminal values at the end of such forecast period determined based on market accepted approaches (which may be a Gordon growth model appropriately adjusted

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for expectations relating to artist lifespans), and must take into account the duration of each related Copyright;

&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)as of any applicable date of determination, no value is attributed to songs or albums that are unreleased as of such date, or otherwise with respect to any cash flows that are similarly conditional upon assets that do not yet exist as of such date or are not owned by a Borrower on such date (or in the case of assets to be acquired by a Borrower, not expected to be owned by such Borrower on the related Asset Acquisition 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;(d)appropriate adjustments are made to take into account, if and as applicable: (A) genre, (B) the market position (which may include reputation and longevity) of the applicable musician or other artist within that genre, for purposes of considering decay, (C) vintage, (D) any non-traditional music rights, including without limitation rights relating to merchandising, (E) any liabilities or other amounts (including without limitation any deferred purchase price payments or earn-outs) that may be netted or deducted from Collections in respect of such asset, (F) the earlier of the scheduled date (if any) for the expiration or other termination of such asset or the cash flows arising thereunder, or the earliest date on which any such expiration or termination may occur without a Borrower's consent, including pursuant to the exercise of any statutory reversion rights with respect to any Copyright in favor of an author or statutory heir(s) of an author under title 17 U.S. Code §203 and §304 as such reversion rights are customarily taken into account by applicable Approved Appraisers or applicable rating agencies, in each case in this clause (F), except to the extent that the Borrowers or the Manager have demonstrated to the reasonable satisfaction of such applicable Approved Appraisers or rating agencies that the related Asset Transfer Agreement includes provisions to mitigate the risks associated with the exercise of such reversion rights; 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;(e)all other assumptions used in the Appraisal, including without limitation macro growth rates relating to streaming and applicable decay rates, are consistent with market accepted research.

"<u>Appraisal Value</u>" means, with respect to any asset or assets as of any date, the amount equal to the net present value of the expected net cash flows projected to be received by the Borrowers in respect of such asset or assets (taking into account all applicable liabilities (including any related management or administrative services fees that are effectively payable prior to the Advances, other than the Management Fee)), as determined in the most recent Appraisal in accordance with the Appraisal Requirements.

"<u>Appraised Collateral Value</u>" means, as of any date of determination with respect to any Music Products subject to an Appraisal as of such date, the lower of (i) the most recent Appraisal Value of such Music Products as of such date, and (ii) the Consolidated Net Publisher/Net Label Share attributable to such Music Products over the twelve month period immediately preceding such date multiplied by 20 (twenty); <u>provided</u> <u>that</u>, the value of any Future Compositions or Future Recordings shall be deemed to be zero.

"<u>Approved Account Bank</u>" means (a) any Lender, (b) any Person then acting as the Collateral Agent or (c) another Qualified Institution reasonably acceptable to the Required

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Lenders, in each case, or any Affiliate thereof then capable of acting in a similar capacity under the Facility Documents.

"<u>Approved Appraiser</u>" means (a) [\*\*\*] or (b) another valuation agent, appraisal firm or similar Person as mutually agreed between the Lead Borrower and the Required Lenders (each acting in good faith).

"<u>Artist Catalogue</u>" means, with respect to the Borrowers' assets, all of the Music Products, related Music Agreements and related Music Product Rights (including without limitation all related Music Publishing and Master Distribution Rights, Revenue-Generating Agreements and Cashflow Assets) arising from Musical Compositions and/or Master Recordings that were composed or performed by a single artist.

"<u>Asset Acquisition Date</u>" means each date on which a Music Product is acquired by any Borrower (including via the acquisition or joinder of any entity that holds any Music Products).

"<u>Asset Acquisition Package</u>" means, with respect to any asset or assets acquired or proposed to be acquired by any Borrower, an information package submitted to the Lenders (in such format and transmitted in such a manner as the Required Lenders may reasonably specify to the Manager and the Lead Borrower from time to time), that includes each 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;(a)with respect to any asset or assets (including any group of related assets acquired at substantially the same time) with an aggregate purchase price in excess of the Valuation Threshold, a copy of an Appraisal calculating the Appraisal Value of such asset or assets, prepared by an Approved Appraiser;

&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 copy of the applicable asset valuation model (together with all supporting assumptions and related models and attachments, including calculations demonstrating the determination of the purchase price using a minimum weighted average cost of capital) for such asset or assets, the executive summary (if any) provided to the applicable investment committees of the Manager and the Borrowers, together with any other material information deemed necessary by the Manager for the Lender's evaluation of an investment in such asset or 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;(c)a copy of the completed Asset Diligence Report for such asset or assets and related 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;(d)copies of the results of UCC, intellectual property and/or other applicable Lien searches (including, a search as to judgments, pending litigation, tax, chain-of-title for musical compositions and master recordings) determined to be satisfactory of transactions of this type by the Manager acting in accordance with the Management Standard on the relevant assets that confirm the absence of any Liens on such assets other than Permitted Liens or Liens to be released on or before the applicable Asset Acquisition 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;(e)a copy of each of (i) the final draft of the related Asset Transfer Agreement, including all ancillary transaction documents, schedules and exhibits thereto (or if

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the related Asset Transfer Agreement is not in final form as of the latest date required to be delivered under <u>Section 2.02(a)</u>, the then-current draft of such Asset Transfer Agreement) and (ii) if applicable to the related acquisition, a copy of each related Legacy Purchase Agreement (to the extent available to the Borrowers);

&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 the extent such asset or assets are contemplated to include Intellectual Property, (x) a copy of an updated Intellectual Property Schedule clearly identifying the Intellectual Property assets that are then contemplated to be acquired as of the related Asset Acquisition Date and (y) copies of the applicable related Intellectual Property Security Agreement as then contemplated to be entered into as of the related Asset Acquisition 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;(g)all documentation reasonably necessary (including applicable updates to Cashflow Asset schedules) to ensure that Collections in respect of such assets will be appropriately remitted to the applicable Collection Account.

"<u>Asset Acquisition Procedures</u>" has the meaning specified in <u>Section 2.02(a)</u>.

"<u>Asset Agreement</u>" means each Administration Agreement, each Asset Transfer Agreement, each Legacy Purchase Agreement, each Music Agreement, each Revenue-Generating Agreement, each Storage Facility Access Letter and each Asset Payment Instruction.

"<u>Asset Diligence Report</u>" means a due diligence summary in substantially the form attached hereto as <u>Exhibit H</u>, including an exception summary for the related Asset Transfer Agreement and a confidential information memorandum or other similar presentation detailing the relevant assets and the relevant art, which report will include the related acquisition purchase price.

"<u>Asset Files</u>" means, with respect to any Borrower, all documents and instruments evidencing such Borrower's rights in Musical Compositions, Master Recordings, lyrics, performances (including all rights to record, rerecord, produce, reproduce or synchronize any of the foregoing), all certificates of Copyright registration or, where expired, certificates of renewals of copyright registration, and all copyright assignments (and corresponding proofs of recordation), all documents and instruments evidencing trademarks useful or used in connection with the exploitation of, any Music Product or any music artist or musical group, and any revenue derived therefrom, all filing receipts and/or date-stamped copies of all filings pertaining, in each case, to any assets of such Borrower, including but not limited to the related Music Agreements, other Revenue-Generating Agreements, letters of instruction or direction, and royalty assignment forms.

"<u>Asset Payment Instruction</u>" means, with respect to any Asset Agreement, an agreement of each applicable obligor or payor (which may be a collection agent or similar service provider) of Collections thereunder to cause such Collections to be paid, in each case until such time as the Lead Borrower has otherwise consented or directed otherwise in writing, either to (i) a Borrower Account or (ii) an account in which a Borrower holds a perfected security interest and over which a Borrower has control (for purposes of the UCC), from which the applicable Collections will be swept to a Borrower Account within five (5) Business Days of the receipt thereof.

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"<u>Asset Sale</u>" means any disposition (by way of merger, casualty, condemnation or otherwise) of a Music Product by any Borrower or any Subsidiary.

"<u>Asset Transfer Agreement</u>" means each agreement or instrument by which a Borrower or any of its assets is or proposed to be bound that governs or provides for (or is proposed to govern or provide for) the transfer of one or more assets to a Borrower.

"<u>Assignment and Acceptance</u>" means an Assignment and Acceptance in substantially the form of <u>Exhibit E</u> hereto, entered into by a Lender, an assignee and the Administrative Agent and, if applicable, the Lead Borrower.

"<u>Availability Period</u>" means the period from and including the Closing Date to and including the earlier of (a) the occurrence of an Event of Default, subject to reinstatement, with the consent of all of the Lenders and (b) the Final Maturity Date; <u>provided</u> that the Availability Period may be extended at the request of the Lead Borrower with the consent of all of the Lenders in their respective sole discretion.

"<u>Available Tenor</u>" means, as of any date of determination and with respect to the then-current Benchmark, as applicable, 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 Accrual Period pursuant to this Agreement 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 2.18(d)</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial Institution.

"<u>Bail-In Legislation</u>" means (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation, rule or requirement for such EEA Member Country from time to time 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).

"<u>Bankruptcy Code</u>" means Title XI of the United States Code.

"<u>Bankruptcy Remote Provisions</u>" means, with respect to the Constituent Documents of any Loan Party, the definition of "Independent Manager," the definition of "Material Action," any provision relating to voting thresholds, Sections 5(c), 7, 9(d), 10, 16, 20(e), 21, 22, 23, 24, 25, 26 or 31, in each case, of its limited liability company agreement, or any equivalent provisions.

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"<u>Base Rate</u>" means, for any day, a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Rate in effect on such day <u>plus</u> 0.50% and (c) Term SOFR for a one-month tenor in effect on such day <u>plus</u> 1.00%. Any change in the Base Rate due to a change in the Prime Rate, the Federal Funds Rate or Term SOFR shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Rate or Term SOFR, respectively.

"<u>Base Rate Advance</u>" means an Advance that bears interest at a rate based on the Base Rate.

"<u>Base Rate Term SOFR Determination Day</u>" has the meaning specified in the definition of "Term SOFR".

"<u>Basel III</u>" means the publication entitled "Basel III: A global regulatory framework for more resilient banks and banking systems," as updated from time to time, including any publications addressing the liquidity coverage ratio or the supplementary leverage ratio.

"<u>Benchmark</u>" 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 2.18(a)</u>.

"<u>Benchmark Replacement</u>" means, with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Lead Borrower, with the consent of the Required Lenders, or by the Required Lenders, acting in a commercially reasonable manner (in consultation with the Lead Borrower), giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) 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 at such time and (b) the related Benchmark Replacement Adjustment; <u>provided</u> that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Facility Documents.

"<u>Benchmark Replacement Adjustment</u>" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Lead Borrower, with the consent of the Required Lenders, or by the Required Lenders, acting in a commercially reasonable manner (in consultation with the Lead 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

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spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

"<u>Benchmark Replacement Date</u>" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases to provide such Benchmark (or such component thereof) or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;in the case of clause (c) 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 or, if such Benchmark is a term rate, all Available Tenors of such Benchmark (or such component thereof) have 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 clause (c) and even if such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, if such Benchmark is a term rate, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Event</u>" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, 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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof);

&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

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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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, 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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, any Available Tenor of such Benchmark (or such component thereof); or

&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 such Benchmark (or such component thereof) or, if such Benchmark is a term rate, 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, if such Benchmark is a term rate, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"<u>Benchmark Transition Start Date</u>" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90<sup>th</sup> day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"<u>Benchmark Unavailability Period</u>" means, the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Facility Document in accordance with <u>Section 2.18</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 2.18</u>.

"<u>BHC Act Affiliate</u>" of a party means an "affiliate" (as such term is defined under and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

"<u>BNY Account Bank</u>" means The Bank of New York Mellon, in its capacity as an Approved Account Bank under a related Account Control Agreement.

"<u>BNY Fee Schedule</u>" means the schedule of fees for services entered into between the Initial Borrower and the Agents, dated on or prior to the initial Asset Acquisition Date.

"<u>Borrower</u>" has the meaning specified in the Recitals hereto.

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"<u>Borrower Account</u>" means each account, including each Managed Borrower Account and each Restricted Borrower Account.

"<u>Borrower Information</u>" means, with respect to any recipient thereof, any non-public or proprietary information provided to such Person by or on behalf of a Borrower with respect to such Borrower pursuant to this Agreement or any other Facility Document.

"<u>Borrower Interest Reserve Account</u>" has the meaning specified in <u>Section 8.02(b)</u>.

"<u>Borrower Liability Reserve Account</u>" has the meaning specified in <u>Section 2.02(a)(ix)</u>.

"<u>Borrower Payment Account</u>" has the meaning specified in <u>Section 8.02(a)</u>.

"<u>Borrowing</u>" means a borrowing consisting of simultaneous Advances of the same Type and, in the case of a SOFR Borrowing, having the same Interest Accrual Period made by the Lenders.

"<u>Borrowing Date</u>" means the date of a Borrowing.

"<u>Business Day</u>" means any day that is not a Saturday, Sunday or other day that is a legal holiday under the laws of the State of New York or is a day on which banking institutions in such state are authorized or required by Law to close.

"<u>Business Objective</u>" means (i) each Borrower's objectives in acquiring additional music assets financed pursuant to this Agreement and refinancing all or a portion of the financing contemplated hereby through Permitted Securitizations (and the corresponding release of all or a portion of the Collateral), and (ii) any potential assignee's ability to assist each Borrower in realizing the foregoing objectives.

"<u>Cash</u>" means Dollars immediately available on the day in question.

"<u>Cashflow Asset</u>" means any asset that gives rise to cash proceeds in the ordinary course based on its nature or terms.

"<u>Catalogue Appraisal</u>" means, with respect to any Music Products, an Appraisal prepared in connection with the acquisition thereof that includes such Music Products and, thereafter, each Annual Catalogue Appraisal that includes such Music Products.

"<u>Change in Law</u>" means the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority or (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; <u>provided</u> that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith or in the implementation thereof and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements,

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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", regardless of the date enacted, adopted, issued or implemented.

"<u>Change of Control</u>" means, the occurrence of one or more of the following events:

&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) 100% of the Equity Interests of any Subsidiary Guarantor (other than any Subsidiary Guarantor released pursuant to a Permitted Release) ceases to be directly owned by one or more Borrowers (or another Subsidiary Guarantor),

&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) 100% of the Equity Interests of any Borrower (other than any Borrower released pursuant to a Permitted Release) ceases to be directly owned by one or more SPV Guarantors,

&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) 100% of the Equity Interests of any SPV Guarantor (other than any SPV Guarantor released pursuant to a Permitted Release) ceases to be directly owned by the 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;(d) any combination of Permitted Holders shall fail to own beneficially (within the meaning of Rule 13d-5 of the Exchange Act as in effect on the Closing Date), directly or indirectly, in the aggregate 100% of the Equity Interests of the Manager, 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) any combination of the Warner/Bain Holders shall fail to own at least a majority of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Manager.

"<u>Closing Date</u>" means June 27, 2025.

"<u>Code</u>" means the Internal Revenue Code of 1986.

"<u>Collateral</u>" has the meaning specified in <u>Section 7.01(a)</u>.

"<u>Collateral Agent</u>" has the meaning specified in the introduction to this Agreement.

"<u>Collateral Documents</u>" means, with respect to any asset owned by any Loan Party, each related Asset Agreement, Account Control Agreement, Intellectual Property Security Agreement and each other agreement and instrument governing such asset or any rights or obligations of such Borrower with respect thereto, together with all Proceeds thereof.

"<u>Collateral Proceeds Account</u>" has the meaning specified in <u>Section 6.02(e)</u>.

"<u>Collection Account</u>" means each deposit account established in the name of a Borrower or a Subsidiary Guarantor which shall at all times be subject to an Account Control Agreement.

"<u>Collection Period</u>" means, with respect to any Payment Date, the period beginning immediately following the end of the last Collection Period (or in the case of the first Payment

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Date, beginning on the Closing Date) and ending on the last day of the calendar month immediately preceding such Payment Date.

"<u>Collections</u>" means, without duplication, (a) all cash collections, distributions, payments, Proceeds and other amounts paid, payable or owing to any Borrower in respect of its assets, including without limitation all such amounts arising under any Asset Agreement, all licenses or sublicenses granted by a Borrower and any further sublicenses thereof, any proceeds of insurance, guaranties, security or other support in respect of such assets, and any sales or dispositions of any asset (and in each case, including all such collections, distributions, payments, Proceeds and other amounts without regard to whether such amounts arose in compliance with or in violation of the applicable Facility Documents or Collateral Documents), <u>plus</u> (b) all amounts earned by any Borrower in respect of interest or other income from any Borrower Account pledged hereunder <u>plus</u> (c) any DSCR Cure Contributions.

"<u>Commercial Paper</u>" shall mean, with respect to any Conduit Lender, the short-term promissory notes issued in the commercial paper market by or for the benefit of such Conduit Lender.

"<u>Committed Lender</u>" and "<u>Committed Lenders</u>" shall mean each financial institution listed as a Committed Lender in Schedule 1, and any other Person that becomes a committed lender party hereto pursuant to an Assignment and Acceptance, in each case, together with their successors and assigns.

"<u>Commitment Amount</u>" means the commitment of a Lender to make an Advance in the amount set forth on <u>Schedule 1</u> next to the name of such Lender or in an applicable Assignment and Acceptance, subject to adjustment in accordance with the terms hereof. The aggregate Commitment Amount as of the Closing Date is $500,000,000.

"<u>Competitor</u>" means any Music Company or any fund or other entity owning or holding investments in such Person; <u>provided</u> that a Person will not be a Competitor (a) solely by virtue of such Person, fund or entity's direct or indirect ownership of less than 5% of the equity interests in a Music Company or (b) if such Person is a bank, financial institution, insurance company, or any other entity managed by registered investment advisers who regularly engage in making, purchasing or investing in commercial loans as a material portion of their business.

"<u>Conduit Assignee</u>" means, with respect to any Conduit Lender, any commercial paper conduit, whose Commercial Paper is rated at least "A-2" from S&P and/or the equivalent rating of another NRSRO registered with the SEC, that is administered by the related Managing Agent (or for which the related Program Support Provider provides liquidity support) with respect to such Conduit Lender or any Affiliate of such Managing Agent, in each case, designated by such Managing Agent to accept an assignment from such Conduit Lender of its Advances and option to make additional Advances in accordance with the terms hereof, or a portion thereof with respect to such Conduit Lender pursuant to Section 12.01(b).

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"<u>Conduit Lender</u>" and "<u>Conduit Lenders</u>" shall mean each entity listed as a Conduit Lender in Schedule 1, and any other Person that becomes a conduit lender party hereto pursuant to an Assignment and Acceptance, in each case, together with their successors and assigns.

"<u>Conduit Lender Amounts</u>" has the meaning set forth in Section 12.02(b).

"<u>Conforming Changes</u>" 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 2.12</u> and other technical, administrative or operational matters) that the Required Lenders (in consultation with the Lead Borrower) decides may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Required Lenders (in consultation with the Lead Borrower) in a manner substantially consistent with market practice (or, if the Lead Borrower (in consultation with the Required Lenders) decides that adoption of any portion of such market practice is not administratively feasible or determines that no market practice for the administration of any such rate exists, in such other manner of administration as the Required Lenders (in consultation with the Lead Borrower) decides is reasonably necessary in connection with the administration of this Agreement and the other Facility Documents).

"<u>Connection Income Taxes</u>" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"<u>Consolidated Net Publisher/Net Label Share</u>" means, for any applicable period of determination, the Net Publisher/Net Label Share received by any Borrower during such period.

"<u>Constituent Documents</u>" means in respect of any Person, the certificate or articles of formation or organization, trust agreement, 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, similar instrument filed or made in connection with its formation or organization.

"<u>Continuing Errors</u>" has the meaning specified in <u>Section 10.03(h)(vi)</u>.

"<u>Control</u>" 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. "<u>Controlled</u>" and "<u>Controlling</u>" have the meaning correlative thereto.

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"<u>Copyright License</u>" means any written agreement now or hereafter in existence granting to any Borrower, or pursuant to which any Borrower grants to any other Person, any right to use, copy, reproduce, distribute, prepare derivative works, display or publish any copyrighted material to the operations or business of such Borrower, including any agreement identified in Schedule 1 to any Copyright Security Agreement relating to such Borrower.

"<u>Copyright Security Agreement</u>" means a security agreement in substantially the form attached hereto as <u>Exhibit F-1</u>.

"<u>Copyrights</u>" means, collectively, all copyrights, whether registered or unregistered, owned by or assigned to, whether in whole or in part, any Borrower and all registrations and applications for the foregoing under the laws of the United States or any other country (whether or not the underlying works of authorship have been published), all copyrightable works of authorship (whether or not published), including registrations, recordings and applications in the United States Copyright Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, including the copyright registrations and copyright applications described in Schedule 1 to any Copyright Security Agreement relating to a Borrower, now existing or hereafter adopted or acquired, together with (i) all renewals and extensions of any of the foregoing, (ii) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing and (iii) all income, fees, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past, present or future infringements thereof.

"<u>Corporate Trust Office</u>" means the corporate trust office of the Collateral Agent and the Administrative Agent, located at 311 S. Wacker, Suite 6200B, Chicago, IL 60606, or such other address as such party may designate from time to time by notice to the Lenders and the Borrowers, or the principal corporate trust office of any successor collateral agent, successor administrative agent.

"<u>Covered Entity</u>" means any of the following: (i) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

"<u>Covered Party</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>Cure Contribution Holding Account</u>" means a Restricted Borrower Account established in order to hold Permitted Cure Contributions as contemplated by <u>Section 6.03(b)</u>, which shall be maintained with an Approved Account Bank in accordance with the related Account Control Agreement and which shall be subject to the Lien of the Collateral Agent (on behalf of the Secured Parties).

"<u>Daily Simple SOFR</u>" means, for any day (a "<u>SOFR Rate Day</u>"), a rate per annum equal to the greater of (a) SOFR for the day (such day the "<u>SOFR Determination Date</u>") that is five Business Days (or such other period as determined by the Required Lenders, acting in a

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commercially reasonable manner (in consultation with the Lead Borrower), based on one of the then prevailing market conventions) prior to (i) if such SOFR Rate Day is a Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a Business Day, the Business Day immediately preceding such SOFR Rate Day, and (b) the Floor. If by 5:00 p.m. (New York City time) on the second Business Day immediately following any SOFR Determination Date, the SOFR in respect of such SOFR Determination Date has not been published on the SOFR Website and a Replacement Event with respect to the Daily Simple SOFR has not occurred, then the SOFR for such SOFR Determination Date will be the SOFR as published in respect of the first preceding Business Day for which such SOFR was published on the SOFR Website; provided that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than five consecutive Business Days.

"<u>Default Right</u>" 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.

"<u>Defaulting Lender</u>" means any Lender that, as reasonably determined by the Lead Borrower: (a) has failed to (i) fund any Advances that have been requested and for which the conditions precedent in <u>Section 3.02</u> and <u>Section 3.03</u> have been satisfied (including, for the avoidance of doubt, any Delaying Lender for so long as such Delaying Lender has failed to fund the applicable Borrowing pursuant to Section 2.08, other than a Conduit Lender exercising its sole discretion not to fund) or (ii) pay to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within two Business Days of the date when due, (b) has notified any 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 the effect (unless such writing or public statement 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 Lead Borrower or any Borrower, to confirm in writing to the Borrowers that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Lead Borrower), or (d) has, or has other than via an Undisclosed Administration a direct or indirect parent company that has, (i) with respect to which an Insolvency Event has occurred, (ii) become the subject of a bail-in action, or (iii) had publicly 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, federal, provincial or territorial regulatory authority acting in such a capacity; 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 Lead Borrower that a Lender is a Defaulting Lender under any one or more of clauses (a) through (d) above shall

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be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender. Notwithstanding anything set forth herein to the contrary, a Defaulting Lender shall not have any voting or consent rights under or with respect to any Facility Document or constitute a "Lender" for any voting or consent rights under or with respect to any Facility Document for as long as such Lender remains a Defaulting Lender.

"<u>Deferred Purchase Price Asset Amount</u>" means, with respect to any Collection Period, the total amount of Outstanding Collections in respect of Deferred Purchase Price Assets for such Collection Period.

"<u>Deferred Purchase Price Assets</u>" means any assets that are subject to Deferred Purchase Price Liabilities.

"<u>Deferred Purchase Price Liability</u>" has the meaning specified in <u>Section 2.02(a)()</u>.

"<u>Delayed Amount</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delayed Funding Date</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delaying Funding Notice</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delaying Funding Notice Date</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Delaying Lender</u>" has the meaning specified in <u>Section 2.08</u>.

"<u>Designated Delay Lender</u>" means (i) the specific financial institutions identified by the Lenders prior to the Closing Date that the Loan Parties have indicated are acceptable and (ii) each Lender approved in writing by the Loan Parties in their sole discretion.

"<u>Determination Date</u>" means the last day of each Collection Period.

"<u>Disqualified Lender</u>" means any Person identified as such by the Lead Borrower in writing to the Lenders (with a copy to the Administrative Agent), and each Person who is known to an applicable Lender to be an Affiliate of any such Person, prior to the Closing Date as updated and from time to time thereafter with the consent of the Required Lenders (not to be unreasonably withheld).

"<u>Disqualified Person</u>" has the meaning specified in Section 12.01(i).

"<u>Distributable Cash</u>" means, with respect to any Payment Date, without duplication: (i) all Collections received with respect to the Collection Period ending immediately prior to such Payment Date, (ii) in the event any reserves were established in any Restricted Borrower Accounts for the payment of Obligations payable under and pursuant to <u>Section 2.11(a)</u>, <u>2.12</u>, <u>11.03(d)</u> or <u>11.04</u>, any amounts so reserved in such Restricted Borrower Accounts, (iii) any Permitted Cure Contributions received in respect of such Payment Date pursuant to <u>Section 6.03(a)</u>, other than any Permitted Cure Contributions required to be retained pursuant to <u>Section 6.03(b)</u>, (iv) any Permitted Cure Contributions permitted to be released to the Borrower Payment

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Account for application on such Payment Date pursuant to <u>Section 6.03(b)</u>, (v) all amounts constituting or otherwise received by any Borrower in respect of any Release Proceeds in connection with any Permitted Release, (vi) any amounts withdrawn from the Borrower Interest Reserve Account or a Cure Contribution Holding Account for application as Distributable Cash on such Payment Date in accordance with <u>Section 9.02</u> and (vii) on the Final Maturity Date or if an Event of Default has occurred and is continuing, all amounts on deposit in all Borrower Accounts (including all Managed Borrower Accounts).

"<u>Dodd Frank Act</u>" has the meaning specified in <u>Section 2.11(a)</u>.

"<u>Dollars</u>" and "<u>$</u>" mean lawful money of the United States of America.

"<u>DSCR</u>" means an amount calculated as of any Measurement Date by dividing (x) the Net Cash Flow over the immediately preceding three (3) Collection Periods most recently ended to (y) the amount of Interest that the Borrowers will be required to pay over the next three (3) Collection Periods on the Advances on the next Payment Date on the aggregate principal balance of Advances outstanding as of such Measurement Date.

"<u>DSCR Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>EEA Financial Institution</u>" 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 entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

"<u>EEA Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA Resolution Authority</u>" means any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Electronic Means</u>" means the following communications methods: e-mail, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by an Agent, or another method or system specified by such Agent as available for use in connection with its services hereunder.

"<u>Eligible Assignee</u>" means (i) a Person who is an Affiliate of a Lender, (ii) a Conduit Assignee, (iii) the specific financial institutions identified by the Lenders prior to the Closing Date that the Loan Parties have indicated are acceptable, or (iv) such other Person as may be acceptable to the Required Lenders (acting reasonably) and, so long as no Event of Default has occurred and is continuing, the Borrowers; <u>provided</u> that, in each case, such Person is not a Competitor, a Disqualified Lender or a Defaulting Lender.

"<u>Eligible Investments</u>" means, at any time, any one or more of the following obligations, instruments, investments and securities:

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&nbsp;&nbsp;&nbsp;&nbsp;&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 obligations of, and obligations fully guaranteed by, the United States of America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America;

&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 deposits, time deposits, bankers' acceptances or certificates of deposit of any depository institution or trust company (i) incorporated under the laws of the United States of America, any United States of America state or any United States of America branch of a foreign bank, (ii) subject to supervision and examination by federal or state banking or depository institution authorities, (iii) fully insured by the Federal Deposit Insurance Corp. (FDIC) and (iv) at the time of the investment or contractual commitment to invest therein, the commercial paper or other short-term unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) of which have a short-term rating of at least "A-1" from S&P or the equivalent rating of another NRSRO;

&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)repurchase obligations, having maturities of not more than 365 days, with respect to any security that is a direct obligation of, or fully guaranteed by, the United States of America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America, in either case entered into with a depository institution or trust company (acting as principal) described in clause (b) 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;(d)short-term corporate securities bearing interest or sold at a discount issued by any corporation incorporated under the laws of the United States of America or any state thereof; <u>provided</u>, <u>however</u>, that (i) such investment shall not have an 'r' highlighter affixed to its rating and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change and (ii) at the time of the investment, the short-term unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such corporation) of such corporation shall have the highest rating from S&P or the highest rating of another NRSRO;

&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)commercial paper having maturities of not more than 365 days, at the time of the investment, with the highest rating from S&P or the highest rating of another NRSRO; <u>provided</u>, <u>however</u>, that such investment shall not have an 'r' highlighter affixed to its rating and its terms shall have a predetermined fixed dollar amount of principal due at maturity that cannot vary or change;

&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)guaranteed investment contracts issued by an insurance company or other corporation consented to in writing by the Required Lenders (in consultation with the Lead 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;(g)investments in money market funds having a rating from S&P of at least "AAA" or the equivalent rating of another NRSRO; 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;(h)any other investment consented to in writing by the Required Lenders (in consultation with the Lead Borrower); <u>provided</u>, <u>however</u>, that in no event shall any such investment have a long term rating of less than "AA" from S&P or a short-term rating of less than "A-1" from S&P or the equivalent rating of another NRSRO;

<u>provided</u> that each of the foregoing investments shall (i) mature no later than one (1) Business Day prior to the Payment Date immediately following the Collection Period in which such investment was made, (ii) be required to be held until maturity, (iii) exclude any mortgage backed securities and any security of the type commonly known as "strips", (iv) be limited to those instruments that have a predetermined fixed dollar of principal due at maturity that cannot

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vary or change (<u>provided</u> that money market funds shall be deemed to satisfy this clause (iv)) and (v) not require a payment above par to purchase an obligation if the obligation may be prepaid at the option of the issuer thereof prior to its maturity.

"<u>Equity Interests</u>" means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on any date of determination.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, and the regulations promulgated and rulings issued thereunder.

"<u>ERISA Event</u>" 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 (30) 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); (i) 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; (c) 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); (d) the incurrence by any Loan Party or any member of its ERISA Group of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) (i) the receipt by any Loan Party 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, or (ii) the filing by any Loan Party or any member of its ERISA Group of a notice of intent to terminate any Plan; (f) the incurrence by any Loan Party or any member of its ERISA Group of any 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; (g) the receipt by any Loan Party 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 (h) the failure of any Borrower or any member of its ERISA Group to make any required contribution to a Multiemployer Plan.

"<u>ERISA Group</u>" means, with respect to any Borrower, 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 the Code (or Section 414(m) or (o) of the Code for purposes of provisions related to Section 412 of the Code) with such Borrower.

"<u>Erroneous Payment</u>" has the meaning specified in <u>Section 10.07(a)</u>.

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"<u>Erroneous Payment Subrogation Rights</u>" has the meaning specified in <u>Section 10.07(d)</u>.

"<u>Errors</u>" has the meaning specified in <u>Section 10.03(h)(vi)</u>.

"<u>EU Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Event of Default</u>" has the meaning specified in <u>Section 6.01</u>.

"<u>Excess Concentration Amounts</u>" means, as of any Asset Acquisition Date or the date of any Asset Sale:

[\*\*\*].

"<u>Exchange Act</u>" means the Securities Exchange Act of 1934, and the rules and regulations promulgated thereunder, all as from time to time in effect.

"<u>Excluded Taxes</u>" 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 net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Secured Party being organized under the laws of, or having its principal office in or, in the case of any Lender, its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of any Lender, any U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in an Obligation pursuant to a law in effect on the date on which (i) such Lender acquires such interest in an Obligation (other than pursuant to an assignment under <u>Sections 2.11(b),</u> <u>11.03(i)</u> or <u>12.01(h)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section 11.03</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 11.03(g)</u>, and (d) any Taxes under FATCA.

"<u>Excepted Earn-out Liabilities</u>" means a liability of a Borrower or Subsidiary Guarantor in respect of any assets that would otherwise be subject to clauses (A), (B) or (D) of <u>Section 2.02(a)(v)</u>, except that the Manager on behalf of the applicable Borrower has delivered a written certification to the Lenders (with a copy to the Administrative Agent) that such liability is a conditional liability that is not payable unless the net Collections received in respect of such asset increase by an amount that would enable the applicable Borrower to fully satisfy such liabilities in compliance with the terms of the Facility Documents.

"<u>Facility Documents</u>" means this Agreement, the**<u>each</u>** Lender Fee Letter, the BNY Fee Schedule, each Collateral Document, the Limited Indemnity, the Management Agreement, the Constituent Documents of each Borrower, each Account Control Agreement, each Hedging Agreement, each Assignment and Acceptance, each Joinder Agreement, each Release Request

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and each other agreement or instrument entered into or delivered in connection with any of the foregoing designated as a Facility Document by the Lead Borrower.

"<u>Facility Pool</u>" means, as of any date of determination, all assets (other than any Borrower Account or property held therein) owned by the Borrowers and included in the Collateral as of such date.

"<u>FATCA</u>" means Code Sections 1471 through 1474, 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) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"<u>Federal Funds Rate</u>" means, for any specified period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the overnight federal funds rates as published in Federal Reserve Board Statistical Release H.15(519) or any successor or substitute publication selected by the Manager (or, if such day is not a Business Day, for the next preceding Business Day), or if, for any reason, such rate is not available on any day, the average of the quotations for the day of such transactions received by the Manager (or, Goldman Sachs & Co. LLC, at its sole discretion, if the Manager does not obtain such quotations) from three federal funds brokers of recognized standing selected by it.

"<u>Final Maturity Date</u>" means the earliest of (a) June 27, 2030, (b) the date of the acceleration of the Advances pursuant to <u>Section 6.02</u>, or (c) the date on which all Obligations shall have been paid in full in cash (other than contingent indemnity obligations not yet due and owing).

"<u>Floor</u>" means a rate of interest equal to 0.00%.

"<u>Fundamental Amendment</u>" means any amendment, modification, waiver or supplement of or to this Agreement that would (a) change the Final Maturity Date, (b) extend the date fixed for the payment of outstanding principal of or accrued and unpaid interest on any Advance or any accrued and unpaid 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 Collateral except in accordance with <u>Section 8.04</u>, modify the definition of "Permitted Lien," (f) alter the terms of <u>Section 8.04</u>, <u>Section 11.01(b)</u>, <u>Section 11.06</u>, <u>Section 12.01(a)</u>, <u>Section 12.01(b)</u> or <u>Section 12.01(g),</u> (g) release any Loan Party from its obligations hereunder except in accordance with <u>Section 8.04</u>, (h) modify the definition of the terms "Aggregate Collateral Value" (or any of the components thereof), "Commitment Amount," "DSCR," "Fundamental Amendment", "Lender Percentage," "LTV Ratio," "Maximum LTV Ratio," "Net Cash Flow," "Required Lenders," or modify in any other manner the number or percentage of the Lenders required to make any determinations or waive any rights hereunder or to modify any provision hereof, (i) extend the Availability Period, (j) modify the Priority of Payments or otherwise alter the priorities in which the Borrowers are obligated to pay their liabilities (including, without limitation, as the result of the incurrence of additional liabilities on

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the part of the Borrowers that are not subject to or accounted for in the Priority of Payments), (k) change the currency required for payments of Obligations under this Agreement or (l) subordinate (or amend or modify this Agreement in any manner that has the effect of subordinating) (x) the Liens on all or substantially all (as determined by the applicable Borrower in good faith) of the Collateral to any Lien on the Collateral securing any other Indebtedness for borrowed money or Indebtedness evidenced by notes or similar instruments or (y) any of the Advances in right of payment to any other Indebtedness for borrowed money or Indebtedness evidenced by notes or similar instruments, in each case, to either be senior in right of payment to this Agreement or be secured by a Lien on the Collateral that is senior to the Liens securing the Collateral contemplated by this Agreement (any such other Indebtedness for borrowed money to which such Liens or obligations, as applicable, are subordinated, "<u>Senior Indebtedness</u>"), unless, in each case, (i) such Senior Indebtedness is expressly permitted by this Agreement as in effect on the Closing Date or (ii) each directly and adversely affected Lender has been offered an opportunity to fund or otherwise provide its pro rata share (based on the amount of obligations that are adversely affected thereby held by each Lender and calculated immediately prior to any applicable amendment or incurrence of such Senior Indebtedness) of the Senior Indebtedness on the same terms as offered to all other providers (or their Affiliates) of the Senior Indebtedness (other than bona fide backstop fees, structuring or arrangement or similar fees and reimbursement of counsel fees and other expenses in connection with the negotiation of the terms of such transaction) pursuant to a written offer made to each such directly and adversely affected Lender describing the material terms of the arrangements pursuant to which the Senior Indebtedness is to be provided, which offer shall remain open to each such directly and adversely affected Lender for a period of not less than five Business Days.

"<u>Funded Facility Amount</u>" means, as of any date of determination, the aggregate principal amount of Advances made on or prior to such date, reduced from time to time by payments and distributions in respect of principal of such Advances.

"<u>Future Composition</u>" means any work that has not been written and/or composed as of the applicable Asset Acquisition Date, but which upon being written and/or composed would be a Musical Composition.

"<u>Future Recordings</u>" means any work that has not been recorded and/or released as of the applicable Asset Acquisition Date, but which upon being recorded and/or released would be a Master Recording. 

"<u>FX Aggregator Account</u>" has the meaning specified in <u>Section 8.02(e)</u>.

"<u>GAAP</u>" means generally accepted accounting principles in effect from time to time in the United States of America.

"<u>Genre</u>" means, with respect any Music Product, the genre specified in the Appraisal or, if not set forth therein, the Manager's good faith determination of the genre made in accordance with the Management Standard.

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"<u>Governmental Authority</u>" means any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, quasi-regulatory authority, administrative tribunal, central bank, public office, court, arbitration or mediation panel, or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of government, including the SEC, 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 entity of any of the foregoing, whether domestic or foreign.

"<u>Governmental Authorizations</u>" means all franchises, permits, licenses, approvals, consents and other authorizations of all Governmental Authorities.

"<u>Governmental Filings</u>" 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. For the avoidance of doubt, "Governmental Filings" do not include filings of financing statements under the UCC or comparable laws.

"<u>Guarantors</u>" means each SPV Guarantor, the Subsidiary Guarantors and each Borrower.

"<u>Guaranty</u>" means the Guaranty of each of the Guarantors provided pursuant to Article XIII.

"<u>Hedge Counterparty</u>" means (a) a Secured Hedge Counterparty or (b) a Qualified Counterparty; <u>provided</u> that, no counterparty described in the preceding clause (b) shall be a "Hedge Counterparty" unless such counterparty shall have executed a Hedge Counterparty Joinder and delivered such Hedge Counterparty Joinder to the Administrative Agent.

"<u>Hedge Counterparty Joinder</u>" means a joinder agreement, in form and substance reasonably acceptable to the Required Lenders, executed by a Qualified Counterparty, pursuant to which such Qualified Counterparty has agreed (a) to be bound by the terms of the Facility Documents, including the collateral assignment by each applicable Borrower of its rights under the applicable Hedging Agreement in accordance with the terms hereof, and (b) that, upon the occurrence and during the continuation of an Event of Default, it shall (i) follow the instructions or direction from the Required Lenders with respect to the exercise of rights and remedies by such Qualified Counterparty under such Hedging Agreement and (ii) if so requested by the Required Lenders, make all payments due and payable under such Hedging Agreement directly to the related Approved Account Bank for deposit into a Restricted Borrower Account (and each applicable Borrower consents to the foregoing and agrees that payment to the related Approved Account Bank in accordance with clause (ii) shall discharge the Hedge Counterparty's obligation to pay such amount to such Borrower). A copy of each Hedge Counterparty Joinder shall be provided to all parties to this Agreement.

"<u>Hedge Unwind Date</u>" has the meaning specified in <u>Section 9.04</u>.

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"<u>Hedged Rate</u>" means, as of any date of determination and for so long as the Loan Parties (or any of them) have entered into and as of such date maintain one or more Hedging Agreements for purposes of hedging the Interest Rate hereunder, the "Fixed Rate" under (and as defined in) such Hedging Agreement(s) (or such other term as used in such Hedging Agreement(s) that refers to the as-hedged interest rate then payable by the related Loan Party thereunder); <u>provided</u> that if the Loan Parties have entered into more than one such Hedging Agreement, the "Hedged Rate" shall mean the weighted average of the "Fixed Rates" (or such equivalent term) under each such Hedging Agreements then in full force and effect.

"<u>Hedging Agreement</u>" means, collectively, (a) an ISDA Master Agreement, the related Schedule to the ISDA Master Agreement, and the related Confirmation or (b) a long form confirmation, in each case entered into between one or more Borrowers and a Hedge Counterparty.

"<u>Hedging Trigger Event</u>" means, the date on which the average yield for the United States Treasury Security having a term of five years, measured based on the closing price for each of the trailing thirty (30) Business Days, is equal to or greater than 4.75% per annum.

"<u>Illegality Notice</u>" has the meaning specified in <u>Section 2.14</u>.

"<u>Immaterial Liabilities</u>" means (a) contingent liabilities that are in effect payable solely at the option of a Borrower, including liabilities that would only arise upon a Borrower electing, in its sole discretion, to participate in any future acquisition of assets, subject in each case, to the establishment and deposit of reserves for such liabilities in a Borrower Liability Reserve Account prior to any election by any Borrower that would cause such liabilities to be incurred, (b) contingent or other immaterial liabilities, the non-payment of which would not, as determined by the Manager in accordance with the Management Standard, result in any material loss, impairment or diminution in value of any Borrower's assets or any other material adverse consequences to any Borrower or any Secured Party, which liabilities shall be payable from Distributable Cash in accordance with the Priority of Payments and (c) any other liabilities disclosed in writing to, and consented to by, the Required Lenders in their sole discretion.

"<u>Indebtedness</u>" means, as applied to any Person, without duplication, (i) all indebtedness for borrowed money; (ii) that portion of obligations with respect to capital leases that is properly classified as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and drafts accepted representing extensions of credit whether or not representing obligations for borrowed money; (iv) any obligation owed for all or any part of the deferred purchase price of property or services, including any earn-out obligations, purchase price adjustments and profit-sharing arrangements arising from purchase and sale agreements (excluding trade payables incurred in the ordinary course of business that are not overdue by more than 90 days), in each case, other than arising under any Asset Agreement; (v) all indebtedness secured by any Lien on any property or asset owned or held by that Person regardless of whether the indebtedness secured thereby shall have been assumed by that Person or is nonrecourse to the credit of that Person; (vi) the face amount of any letter of credit issued for the account of that Person or as to which that Person is otherwise liable for reimbursement of drawings; (vii) the direct or indirect guaranty, endorsement (otherwise than for collection or deposit in the ordinary course of

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business), co-making, discounting with recourse or sale with recourse by such Person of the obligation of another or any obligation of such Person with an effect substantially the same as any of the foregoing; and (viii) all obligations of such Person in respect of any exchange traded or over the counter derivative transaction, including under any Hedging Agreement, in each case, whether entered into for hedging or speculative purposes or otherwise. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person's ownership interest in or other relationship with such entity, except (other than in the case of general partner liability) to the extent that the terms of such Indebtedness expressly provide that such Person is not liable therefor. The "amount" or "principal amount" of any guaranty or other contingent liability referred to in <u>clause (vii)</u> above shall be an amount equal to the stated or determinable amount of the primary obligation in respect of which such guaranty or other contingent obligation is made or, (x) if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith or (y) if the amount of the guaranty or other contingent liability is less than the determinable amount of the primary obligation (e.g., because of limited recourse to the guarantor), the maximum amount of potential liability on account of such guaranty or other contingent obligation.

"<u>Indemnified Liabilities</u>" has the meaning specified in <u>Section 11.04(b)</u>.

"<u>Indemnified Party</u>" has the meaning specified in <u>Section 11.04(b)</u>.

"<u>Indemnified Taxes</u>" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Borrower under any Facility Document and (b) to the extent not otherwise described in (a), Other Taxes. 

"<u>Independent Director</u>" means, with respect to any Loan Party, a natural person who (A) at the time of his or her appointment as an Independent Director is employed by (or is otherwise designated to act as an Independent Director by) Citadel SPV LLC, CT Corporation, Corporation Service Company, Global Securitization Services, LLC, National Registered Agents, Inc., National Corporate Research Ltd., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or Maples Fiduciary Services (Delaware) Inc. or any other nationally-recognized company that provides professional independent directors or managers for special purpose entities in the ordinary course of its business and (B) is not, and has never been, and will not while serving as a director be, any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)a member, partner, equityholder, manager, director, officer or employee of any equityholder or Affiliate of the related Loan Party (other than as a "special member" or an independent director of an Affiliate of such Loan Party or any special purpose equityholder that is not in the direct chain of ownership of such Loan Party and that is required by a creditor to be a special purpose entity; <u>provided</u> that such Person is employed by a company that in the ordinary course of business provides professional independent directors or managers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;a creditor of or a supplier or service provider (including provider of professional services) to such Loan Party, any special purpose equityholder of such Loan

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Party, or any of their respective equityholders or Affiliates (other than in his capacity as an employee of a nationally-recognized company that in the ordinary course of business provides professional independent directors or registered agent or registered office services to such Loan Party, or any of their respective equityholders or Affiliates); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;an immediate family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or service provider.

A natural person who otherwise satisfies the foregoing definition other than subparagraph (i) by reason of being the independent director of a "special purpose entity" affiliated with any Loan Party shall not be disqualified from serving as an Independent Director under subparagraph (i) for so long as the fees that such individual expects to earn from serving as independent director of all Affiliates of such Loan Party in any single calendar year constitute in the aggregate less than five percent (5%) of such individual's estimated annual income for that year. A natural person who otherwise satisfies the foregoing definition other than subparagraph (ii) by reason of being a creditor solely in his or her capacity as an independent director of a "special purpose entity" that is an Affiliate of any Loan Party shall not be disqualified from serving as an Independent Director under subparagraph (ii).

"<u>Initial Advance Amount</u>" means, with respect to any asset of any Borrower as of any date, the aggregate principal amount of Advances actually made hereunder to fund the acquisition of such asset (as calculated without regard to any subsequent payments or distributions in respect of principal of such Advances).

"<u>Initial Borrower</u>" has the meaning specified in the introduction to this Agreement.

"<u>Initial SPV Guarantor</u>" has the meaning specified in the introduction to this Agreement.

"<u>Insolvency Event</u>" 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 ninety (90) 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.

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"<u>Intellectual Property</u>" means any and all intellectual and similar property, including Music Products, of every kind and nature now owned or hereafter acquired by any Loan Party, whether registered or unregistered, including all inventions, designs, Copyrights, Patents, Trademarks, trade secrets, confidential or proprietary technical and business information, know-how, show-how or other data or information, software and databases, and all registrations for and all additions and improvements to any of the foregoing that are now owned or hereafter acquired (or contemplated to be owned or acquired, as the context may require) by any Loan Party.

"<u>Intellectual Property Schedule</u>" means <u>Schedule 4</u> hereto, which shall list by Borrower a listing of all Registered Intellectual Property.

"<u>Intellectual Property Security Agreement</u>" means a Copyright Security Agreement, a Patent Security Agreement or a Trademark Security Agreement.

"<u>Interest</u>" means, for each day during an Interest Accrual Period and each outstanding Advance on such day, the sum of the products (for each day during such Interest Accrual Period) of:

---

| | | |
|:---|:---|:---|
| <br>where: | | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IR x P x 1/D |
| IR | = | &nbsp;&nbsp;the Interest Rate for such Advance on such day; |
| P | = | &nbsp;&nbsp;the principal amount of such Advance on such day; and |
| D | = | &nbsp;&nbsp;360 |

---

"<u>Interest Accrual Period</u>" means, as to any Borrowing, the period commencing on the date of such Advance or Borrowing and ending on the numerically corresponding day in the calendar month that is three months thereafter (in each case, subject to the availability thereof), as specified in the applicable Notice of Borrowing; provided that (i) if any Interest Accrual Period would end on a day other than a Business Day, such Interest Accrual Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Accrual Period shall end on the next preceding Business Day, (ii) any Interest Accrual Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Accrual Period) shall end on the last Business Day of the last calendar month of such Interest Accrual Period, (iii) no Interest Accrual Period shall extend beyond the Final Maturity Date and (iv) no tenor that has been removed from this definition pursuant to <u>Section 2.18(d)</u> shall be available for specification in such Notice of Borrowing. For purposes hereof, the date of an Advance or Borrowing initially shall be the date on which such Advance or Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Advance or Borrowing.

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"<u>Interest Rate</u>" means, for any Interest Accrual Period and for each Advance outstanding by a Lender for each day during such Interest Accrual Period, a rate per annum equal to (i) in the case of a Base Rate Advance, the Base Rate <u>plus</u> the Applicable Margin; and (ii) in the case of a Term SOFR Advance, the Term SOFR for the Interest Accrual Period therefor <u>plus</u> the Applicable Margin; <u>provided</u>, that upon the occurrence and during the continuance of an Event of Default (which has not otherwise been waived by the Required Lenders pursuant to the terms hereof) the Interest Rate shall be **<u>increased by</u>** the Post-Default Rate <u>plus</u> the Applicable Margin.

"<u>Interest Reserve Required Amount</u>" means, with respect to any Reporting Date, the aggregate amount of Interest expected to be due and payable in respect of the Advances during the next three (3) months, as determined based on the aggregate outstanding principal amount of Advances on such date and the Interest Rate in effect on such date; <u>provided</u> that, for such purposes, "Interest" shall be calculated using the lower of Term SOFR and the Hedged Rate, in each case, as of such date.

"<u>Inventory</u>" means, with respect to any Borrower, any physical embodiments of Music Product manufactured by or on behalf of such Borrower and used or held for use in the ordinary course of business of such Borrower and all related packaging, including without limitation, all copies of published Musical Compositions (whether in the form of sheet music, orchestrations, folios, compilations, song books or any other form of print), all phonorecords (e.g., compact discs, vinyl LPs, DVDs, cassette tapes, etc.) and digital back-ups and other duplications of sound recordings (other than any original masters of any Master Recording), all merchandise and other collateral materials, all promotional materials (including music videos, promotional films, merchandising or any other similar materials), any other materials created, produced or manufactured pursuant to a Music Agreement (other than Master Recordings), and related products and other readily marketable materials, and including raw materials used in the manufacture of any of the foregoing.

"<u>Investment Company Act</u>" means the Investment Company Act of 1940, and the rules and regulations promulgated thereunder, all as from time to time in effect.

"<u>IP License</u>" means any Patent License, Trademark License, Copyright License or other material written license or sublicense agreement relating to Intellectual Property.

"<u>IRS</u>" means the U.S. Internal Revenue Service.

"<u>ISDA Definitions</u>" means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time.

"<u>Joinder Agreement</u>" has the meaning specified in <u>Section 2.01(a)</u>.

"<u>Joint Lead Arranger</u>" has the meaning specified in the Recitals hereto.

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"<u>Law</u>" 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, rule of public policy, settlement agreement, statute, or writ, of any Governmental Authority, or any particular section, part or provision thereof.

"<u>Lead Borrower</u>" means, initially the Initial Borrower, or at any time following a Permitted Release of the Equity Interests in the Initial Borrower, any other Borrower designated in writing from time to time as the "Lead Borrower" to the Administrative Agent and the Required Lenders. If at any time there is only one Borrower, that Borrower shall be the Lead Borrower without any further action on the part of the Loan Parties.

"<u>Legacy Purchase Agreements</u>" means, with respect to any seller(s) under an Asset Transfer Agreement, each agreement or instrument by which such seller(s) and each of its or their predecessors-in-title, acquired its or their respective interests in any Music Products from any third-party, including, as applicable, asset purchase agreements, work-for-hire agreements, Copyright assignments, recording agreements, distribution agreements, publishing agreements, administration agreements, producer agreements, mixer agreements, sample agreements, licenses, settlement agreements, or equivalent agreements or instruments.

"<u>Lender</u>" means, (a) each Person identified as such on <u>Schedule 1</u> hereto and any other Person that shall have become a party hereto as a lender in accordance with the terms hereof pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Acceptance, and (b) "Lenders" means, collectively, all of the foregoing lenders.

"<u>Lender Fee Letter</u>" means **<u>(i)</u>** that certain lender fee letter agreement, dated as of the Closing Date, among the Initial Borrower and the initial Lenders **<u>party thereto and (ii) each other fee letter by and among the Initial Borrower and the Lenders party thereto and designated in writing as a "Lender Fee Letter" by the Initial Borrower</u>**.

"<u>Lender Percentage</u>" means (i) for all funding matters hereunder, with respect to each Lender at any time, a fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the unfunded Commitment Amount of such Lender at such time and the denominator of which is the aggregate unfunded Commitment Amounts of all Lenders at such time, and (ii) with respect to all other matters, including the receipt of payments hereunder, with respect to each Lender at any time, the Lender Percentage shall be determined based on each such Lender's pro rata share of the aggregate outstanding principal amount of all Advances as of such date.

"<u>Lien</u>" 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 any Loan Party of any financing statement under the UCC or comparable law of any jurisdiction).

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"<u>Limited Indemnity</u>" means that certain Limited Indemnity Agreement, dated as of the date hereof, by and between Beethoven JV 1, LLC, as limited indemnitor, the Collateral Agent and the Lenders.

"<u>Loan Parties</u>" means each Borrower, each SPV Guarantor and each Subsidiary Guarantor.

"<u>LTV Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>LTV Ratio</u>" means, as of any date of determination, the percentage equivalent of a fraction, (x) the numerator of which is the Funded Facility Amount as of such date and (y) the denominator of which is the Aggregate Collateral Value as of such date.

"<u>Managed Borrower Account</u>" means each Borrower Account that is not a Restricted Borrower Account.

"<u>Management Agreement</u>" means the Music Portfolio Management Agreement, dated as of the date hereof, by and among the Manager, the Initial Borrower, the Initial SPV Guarantor and each other Loan Party, party hereto from time to time.

"<u>Management Fee</u>" has the meaning specified in the Management Agreement.

"<u>Management Standard</u>" has the meaning specified in the Management Agreement.

"<u>Manager</u>" means Beethoven JV 1, LLC, a Delaware limited liability company, in its capacity as music portfolio manager under the Management Agreement.

"<u>Manager Termination Event</u>" has the meaning specified in the Management Agreement.

"<u>Managing Agent</u>" has the meaning specified in the Recitals hereto.

"<u>Mandatory Prepayment Amount</u>" has the meaning set forth in <u>Section 2.07(d)</u>.

"<u>Margin Stock</u>" has the meaning specified in Regulation U.

"<u>Master Recordings</u>" means that portion of all right, title or interest of any kind in and to any recording of sound (including any "sound recordings" as such term is defined in 17 U.S.C. § 101), which is owned and/or controlled by or licensed to the Borrower or any Subsidiary, or in which the Borrower or any Subsidiary has any economic interest, whether or not coupled with a visual image (by any method and on any substance or material or in any other form or format, now known or hereafter developed), including all multitrack master tapes (including any eight (8), sixteen (16), twenty-four (24) and forty-eight (48) track master tapes and all two (2) track sequenced, fully-mixed, edited, equalized, leadered and mastered digital audio tapes and/or Umatic 1630 tapes) and all mothers, masters, acetates and metals, stamper or pressings or other equivalent parts or reproductions of such master tapes and recordings, and all other similar materials used or useful in the recording, production or manufacture of Records or for audio transmission or for any other commercial exploitation derived from such sound recordings;

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<u>provided</u>, <u>however</u>, that digital back-ups and other duplications of original physical recordings (including, without limitation, compact discs and other Music Product in any medium that constitutes Inventory) shall not be deemed "Master Recordings" for purposes of this Agreement; <u>provided</u>, <u>further</u>, <u>however</u>, sound recordings that are only embodied in a digital format shall be "Master Recordings" for purposes of this Agreement.

"<u>Material Adverse Effect</u>" means, with respect to any Person, an action or an event that could have a material adverse effect on (a) the business, assets, financial condition, operations, performance or properties of such Person, (b) the validity, enforceability or collectability of this Agreement or any other Facility Document against such Person or the validity, enforceability or collectability of all or any material portion of the Collateral, (c) the rights and remedies of the Agents, the Lenders and the Secured Parties with respect to matters arising under this Agreement or any other Facility Document, (d) the ability of such Person to perform its obligations under any Facility Document to which it is a party, or (e) the validity, perfection, priority or enforceability of the Lien of the Collateral Agent for the benefit of the Secured Parties on the Collateral.

"<u>Maximum Advance Amount</u>" means $500,000,000 (as may be increased in accordance with <u>Section 2.19</u>).

"<u>Maximum LTV Ratio</u>" means, as of any date of determination, the weighted average (by Appraised Collateral Value or Non-Appraised Collateral Value, as applicable) of the Specific Maximum LTV Ratios of all Music Products.

"<u>Measurement Date</u>" means (a) each Borrowing Date, (b) each Reporting Date, (c) each Release Date and (d) each date on which an updated Appraisal is delivered hereunder (including each Annual Catalogue Appraisal and each Appraisal delivered at the request of the Lenders in accordance with <u>Section 5.01(o)</u>).

"<u>Minimum DSCR</u>" means, with respect to any Measurement Date, a DSCR of 1.10x.

"<u>Minimum Equity Payment</u>" means, with respect to any Music Products purchased on any Acquisition Date, the product of [\*\*\*].

"<u>Minimum Release Price</u>" means, in the case of any Permitted Release in connection with the sale, disposition or other transfer of any asset included in the Facility Pool, [\*\*\*].

"<u>Money</u>" has the meaning specified in Section 1-201(b)(24) of the UCC.

"<u>Moody's</u>" means Moody's Investors Service, Inc.

"<u>Multiemployer Plan</u>" means an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA that is sponsored by a Borrower or a member of its ERISA Group or to which a Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.

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"<u>Music Agreements</u>" means, with respect to any Borrower, all license agreements, songwriter agreements, publishing agreements, co-publishing agreements, Administration Agreements, Legacy Purchase Agreements, Asset Transfer Agreements, assignments, or any other agreements pursuant to which the Borrower or any Subsidiary acquires or has acquired rights to publish, administer, license, sublicense, control, receive income from, distribute or otherwise exploit Master Recordings, Musical Compositions, Music Product Rights or other Music Product.

"<u>Music Company</u>" means a record label, music publisher or any other Person engaged in the business of owning and exploiting assets similar to the Music Products and other related assets and other activities of such Music Company entered into in furtherance of the foregoing.

"<u>Music Product Rights</u>" means, with respect to any Borrower, all of such Borrower's right, title and/or interest of any kind in or to the Music Products.

"<u>Music Products</u>" means, with respect to any Borrower, any (i) Master Recordings, (ii) Musical Compositions, (iii) Future Recordings, (iv) Future Compositions, (v) NIL Rights, (vi) Neighboring Rights, (vii) Writer's Share of Public Performance, (viii) any and all appurtenant rights to the foregoing pursuant to the grant of rights under the applicable Music Agreements or otherwise (including, without limitation, with respect to videos, packaging, and artwork), and (ix) any other right, title or interest acquired by Borrower pursuant to an applicable Music Agreement.

"<u>Music Publishing and Master Distribution Rights</u>" means, with respect to any Borrower and any Musical Composition or Master Recording included in its assets, Copyrights and related rights to exercise any of the exclusive rights under the U.S. Copyright Act that are reserved to the copyright owner, including, without limitation, the rights to reproduce, distribute, record, perform, use, and otherwise exploit such Musical Composition or Master Recording, or to authorize any third party to do any of the foregoing, to the extent of such Borrower's interests therein.

"<u>Musical Compositions</u>" means that portion of all right, title and interest in and to any musical composition (including the underlying Copyrights) (whether published or unpublished, registered or unregistered), which is owned and/or controlled by or licensed to the Borrower or any Subsidiary, or in which the Borrower or any Subsidiary has any economic interest, including, without limitation, all rights to (a) the lyrics (in any language), themes, titles, musical underscores, bumpers, cues and arrangements, adaptations, editions, and translations, in each case, embodied in or derived therefrom, (b) the exploitation thereof in the form of sheet music, orchestrations, folios, compilations, songbooks and other forms of print, (c) the exploitation thereof as embodied in Records, (d) the inclusion of performances thereof in motion pictures, videotapes and other audiovisual works, and (e) the granting to third parties of the right to perform such musical composition (including, without limitation, on screen, stage or other means) publicly, world-wide or within any particular territory.

"<u>Neighboring Rights</u>" means any and all universe-wide so-called "neighboring rights" in any Master Recordings, as well as any income derived solely from the neighboring rights from

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the public performance or broadcast of a Master Recording in any manner now known or hereafter created in connection with a Person's capacity as a recording artist, performer or producer of the sound recordings, or as the owner of such Master Recording (including, without limitation, digital audio transmissions of sound recordings or any other non-interactive digital performance of sound recordings pursuant to 17 U.S.C. § 112 or § 114) as well as any other public performances of sound recordings that are recognized by WIPO, the Rome Convention or other similar statutes or treaties and their successors or replacements, and laws and regulations currently in effect or hereinafter enacted in any country of the world.

"<u>Net Cash Flow</u>" means, with respect to any Collection Period as of any date, (a) the aggregate amount of Collections received by the Borrowers in respect of such Collection Period as of such date (including without limitation any Collections received in respect of any Hedging Agreement), <u>minus</u> (b) the sum of (i) the aggregate amount of all amounts accrued in respect of any liabilities of the Borrowers in respect of such Collection Period that are payable prior to, or *pari passu* with, Interest on the Advances pursuant to the Priority of Payments (including without limitation any amounts payable under any Hedging Agreement pursuant to <u>clause</u> <u>fourth</u> thereof), <u>plus</u> (ii) the amount of any accrued and unpaid Management Fees then due and payable pursuant to the Management Agreement, plus (iii) any reimbursement of expenses due to the Manager pursuant to the Management Agreement, <u>plus</u> (iv) the aggregate amount of expenses and other amounts payable pursuant to <u>clause</u> <u>second</u> of the Priority of Payments.

"<u>Net Publisher/Net Label Share</u>" means, for any applicable period of determination, the license fees, royalties and other revenue due to any Person (including revenues from any Neighboring Rights or Writer's Share of Public Performance owned by such Person) from the exploitation of the Music Products, including revenue earned but not yet reported in accordance with such Person's revenue recognition policies noted on such Person's audited financial statements, less all license fees, payments, royalties and other amounts (other than Advances) due to writers, copyright owners, sub publishers and holders of other underlying rights in such Music Products, determined on a net basis by matching payments in and payments out regardless of any differences in timing of such payments.

"<u>NIL Rights</u>" means solely the right to use, reproduce and commercially exploit the name, image, likeness or voice (excluding in the context of exploitation of Master Recordings) of any Person in their capacity as a recording artist, performer, producer, mixer, songwriter and/or any other contributor to Musical Compositions and/or Master Recordings, to the extent such rights are independent of any other Music Product or related right.

"<u>Non-Appraised Collateral Value</u>" means, as of any date of determination with respect to any Music Products not subject to an Appraisal as of such date, the lower of (i) the acquisition purchase price of such Music Products paid by the applicable Borrower in immediately available funds in Dollars and (ii) the Consolidated Net Publisher/Net Label Share attributable to such Music Products over the twelve month period immediately preceding such date multiplied by 20 (twenty); <u>provided</u> <u>that</u>, the value of any Future Compositions or Future Recordings shall be deemed to be zero.

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"<u>Non-Consenting Lender</u>" means any Lender that does not approve any consent, waiver or amendment that (a) requires the approval of all or all affected Lenders in accordance with the terms of <u>Section 11.01</u> and (b) has been approved by the Required Lenders.

"<u>Non-Dollar Payments</u>" shall mean any Collections that are received by an Obligor in a currency other than Dollars.

"<u>Non-U.S. Lender</u>" has the meaning specified in <u>Section 11.03(g)(ii)(B)</u>.

"<u>Notice of Borrowing</u>" has the meaning specified in <u>Section 2.04(a)</u>.

"<u>Notice of Prepayment</u>" has the meaning specified in <u>Section 2.07(a)</u>.

"<u>NRSRO</u>" means a "nationally-recognized statistical rating organization" registered with the SEC.

"<u>Obligations</u>" means all Indebtedness, liabilities and obligations, whether absolute, fixed or contingent, at any time or from time to time owing by any Loan Party to any Secured Party under or in connection with this Agreement or any other Facility Document, including, but not limited to, all amounts payable by any Loan Party in respect of the Advances, with interest thereon, all fees payable pursuant to the Lender Fee Letter, the BNY Fee Schedule or any other Facility Document, amounts payable under Hedging Agreements with Secured Hedge Counterparties and all other amounts payable hereunder, including, without duplication, all Erroneous Payment Subrogation Rights.

"<u>Obligor</u>" means, with respect to any Collections payable to any Borrower, the Person or Persons (including each applicable guarantor and each applicable licensee) obligated to pay such Collections or authorized or obligated to conduct activities that may give rise to Collections (whether or not such Collections actually arise).

"<u>OFAC</u>" has the meaning specified in <u>Section 4.01(f)</u>.

"<u>Optional Prepayment</u>" has the meaning specified in <u>Section 2.07(a)</u>.

"<u>Optional Prepayment Date</u>" has the meaning specified in <u>Section 2.07(a)</u>.

"<u>Other Connection Taxes</u>" means, with respect to any Secured Party, 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 from such Secured Party having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Obligation, this Agreement or any other Facility Document, or sold or assigned an interest in any Obligation or Facility Document). 

"<u>Other Taxes</u>" has the meaning specified in Section <u>11.03(c)</u>. 

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"<u>Outstanding Collections</u>" means, with respect to any date during any Collection Period, the portion of Collections accrued and unpaid as of such date that are scheduled to be received by the last day of such Collection Period, in each case, from Obligors that are otherwise current, as of such date, on all other payments due in respect of Collections and that the Manager, acting in accordance with the Management Standard, reasonably determines that it expects to receive; <u>provided</u>, that, to the extent any such Collections are actually received during such Collection Period, such Collections shall not be treated as Outstanding Collections.

"<u>Participant</u>" has the meaning specified in <u>Section 12.01(d)</u>.

"<u>Participant Register</u>" has the meaning specified in <u>Section 12.01(d)</u>.

"<u>Patent License</u>" means any written agreement now or hereafter in existence granting to any Borrower, or pursuant to which any Borrower grants to any other Person, any right with respect to any patent or any invention now or hereafter in existence material to the operations or business of such Borrower, whether patentable or not, whether a patent or application for patent is in existence on such invention or not, and whether a patent or application for patent on such invention may come into existence or not.

"<u>Patent Security Agreement</u>" means a security agreement in substantially the form attached hereto as <u>Exhibit F-2</u>.

"<u>Patents</u>" means, collectively, all patents (including, during the term of a patent, the inventions claimed thereunder) and industrial designs (including any continuations, extensions, divisionals, continuations in part, provisionals, reissues and re-examinations thereof), together with (i) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing and (ii) all income, fees, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past, present or future infringements thereof.

"<u>PATRIOT Act</u>" has the meaning specified in <u>Section 11.16</u>.

"<u>Payment Date</u>" means, the 15<sup>th</sup> day of each January, April, July and October, commencing in October, 2025; <u>provided</u> that, if any such day is not a Business Day, then such date shall be the next succeeding Business Day.

"<u>Payment Recipient</u>" has the meaning specified in <u>Section 10.07(a)</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation, or any successor agency or entity performing substantially the same functions.

"<u>Periodic Report</u>" has the meaning specified in <u>Section 8.03</u>.

"<u>Periodic Term SOFR Determination Day</u>" has the meaning specified in the definition of "Term SOFR".

"<u>Permitted Assets</u>" has the meaning specified in <u>Section 2.02(a)(iv)</u>.

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"<u>Permitted Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

"<u>Permitted Holders</u>" means any of the following: (i) the Access Investors, (ii) Warner Music Group Corp. and its Affiliates, (iii) BCSS W Holdings (A), L.P., any other fund or entity managed or advised by Bain Capital Special Situations, L.P. or its Affiliates, and (iv) any group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) of which any of the Permitted Holders described in clauses (i) through (iii) is a member; <u>provided</u> that in the case of clause (iv) and without giving effect to the existence of such group or any other group, Permitted Holders, collectively, have beneficial ownership, directly or indirectly, of a majority of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Manager.

"<u>Permitted Liabilities</u>" has the meaning specified in <u>Section 2.02(a)(v)</u>.

"<u>Permitted Liens</u>" means: (a) Liens created in favor of the Collateral Agent (for the benefit of the Secured Parties) 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 Borrowers in accordance with GAAP; (c) Liens constituting bankers' liens, rights of setoff and similar Liens granted to financial institutions maintaining the Borrower Accounts or the Collection Accounts, in each case established in accordance with this Agreement; and (d) Liens relating to Storage Facilities or Collateral held therein that are expressly subordinated to the Liens in favor of the Collateral Agent (for the benefit of the Secured Parties) pursuant to the terms of Storage Facility Access Letters.

"<u>Permitted Release</u>" has the meaning specified in <u>Section 8.04(a)</u>.

"<u>Permitted Securitization</u>" means a Permitted Release of the Equity Interests in a Borrower and/or a Subsidiary Guarantor in connection with the issuance of securities backed by such Borrower's and/or Subsidiary Guarantor's assets and/or Equity Interests.

"<u>Person</u>" 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.

"<u>Plan</u>" 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 a Borrower or a member of its ERISA Group or to which a Borrower or a member of its ERISA Group is obligated to make contributions or has any liability.

"<u>Post-Default Rate</u>" means a rate per annum equal to the sum of (a) the Applicable Margin plus (b) 2.00% per annum.

"<u>Prepayment Cure Contribution</u>" has the meaning specified in <u>Section 6.03(b)</u>.

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"<u>Prime Rate</u>" means the "prime rate" published in the "Money Rates" section of The Wall Street Journal, as such "prime rate" may change from time to time. If The Wall Street Journal ceases to publish the "prime rate", then the Manager, in its sole discretion, shall select an equivalent publication that publishes such "prime rate"; and if such "prime rate" is no longer generally published or is limited, regulated or administered by a governmental or quasi-governmental body, then the Manager shall select a comparable interest rate index. In either case, such selection shall be made by the Manager in its sole discretion and the Manager shall notify the Lead Borrower and each Lender in writing of their selection.

"<u>Priority of Payments</u>" has the meaning specified in <u>Section 9.01</u>.

"<u>Private Authorizations</u>" means all franchises, permits, licenses, approvals, consents and other authorizations of all Persons (other than Governmental Authorities).

"<u>Proceeds</u>" has, with reference to any asset or property, the meaning assigned to it under the UCC and, in any event, shall include, but not be limited to, any and all amounts from time to time paid or payable under or in connection with such asset or property.

"<u>Program Support Agreement</u>" means, with respect to any Conduit Lender, any agreement entered into by any Program Support Provider in respect of any Commercial Paper and/or the Advances of such Conduit Lender providing for the issuance of one or more letters of credit for the account of such Conduit Lender, the issuance of one or more insurance policies for which such Conduit Lender is obligated to reimburse the applicable Program Support Provider for any drawings thereunder, the sale by such Conduit Lender to any Program Support Provider of its of its Advances and option to make additional Advances in accordance with the terms hereof (or portions thereof or interests therein) and/or the making of loans and/or other extensions of credit to such Conduit Lender in connection with such Conduit Lender's securitization program, together with any letter of credit, insurance policy or other instrument issued thereunder or guaranty thereof (but excluding any discretionary advance facility provided by a Committed Lender).

"<u>Program Support Provider</u>" means, with respect to any Conduit Lender, any financial institutions and any other or additional Person now or hereafter extending credit or having a commitment to extend credit to or for the account of, and/or agreeing to make purchases from, such Conduit Lender in respect of such Conduit Lender's Commercial Paper and/or Advances, and/or agreeing to issue a letter of credit or insurance policy or other instrument to support any obligations arising under or in connection with such Conduit Lender's securitization program as it relates to any Commercial Paper issued by such Conduit Lender, and/or holding equity interests in such Conduit Lender, in each case pursuant to a Program Support Agreement, and any guarantor of any such Person.

"<u>QFC</u>" has 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).

"<u>QFC Credit Support</u>" has the meaning specified in <u>Section 11.20</u>.

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"<u>Qualified Counterparty</u>" means a nationally chartered bank, national association, federal association bank, savings and loan association, investment bank, state chartered bank, lending institution, pension fund, insurance company, in each case, that has a long-term unsecured debt rating of "A-" or better by S&P or "A3" or better by Moody's (or the equivalent of either such rating of another NRSRO) or the equivalent rating of another NRSRO.

"<u>Qualified Institution</u>" 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 the equivalent of either such rating of another NRSRO) 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 (or the equivalent of either such rating of another NRSRO), (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 the equivalent of either such rating of another NRSRO) 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 the equivalent of either such rating of another NRSRO) or (C) is otherwise reasonably acceptable to the Required Lenders and (ii) the deposits of which are insured by the Federal Deposit Insurance Corporation.

"<u>Records</u>" shall mean all forms of reproductions, transmissions or communications of Master Recordings, of any kind, nature or description, whether now or hereafter known, manufactured, distributed, transmitted or communicated on or at or through any medium or device primarily for home use, personal use, school use, jukebox use or use in means of transportation or commerce, including, without limitation, records of sound alone and audiovisual records (including music videos and DVD), digital compact cassette tapes, analog cassettes, audio tapes, digital audio tapes, digital or streaming downloads, ringtones, compact discs, videodiscs, minidiscs, vinyl records, SACD, DVD-Audio and CD-ROM, CD-I and CD Plus recordings. For the avoidance of doubt, "Records" shall include the streaming, interactive transmission or interactive communication of a Master Recording directly to the consumer regardless of whether such Master Recording has been previously or is subsequently embodied in a physical record configuration.

"<u>Register</u>" has the meaning specified in <u>Section 12.01(c)</u>.

"<u>Registered Intellectual Property</u>" means (i) any Patent registered with the United States Patent and Trademark Office or any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, (ii) any Trademark registered with the United States Patent and Trademark Office or any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, and (iii) any Copyright registered with the United States Copyright Office or any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof.

"<u>Regulation T</u>," "<u>Regulation U</u>" and "<u>Regulation X</u>" mean Regulation T, U and X, respectively, of the Board of Governors of the Federal Reserve System, as in effect from time to time.

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"<u>Release Proceeds</u>" shall mean, with respect to any Permitted Release in connection with the sale, disposition or other transfer of any Music Product included in the Facility Pool, the excess, if any, of (i) the sum of cash and cash equivalents received in connection with such disposition, over (i.e., reduced by) (ii) the sum of (A) the reasonable and customary out-of-pocket expenses incurred by the Loan Parties (or the Manager on their behalf) in connection with such disposition (including, without limitation, the repayment of trade debt in connection therewith) and (B) income Taxes reasonably estimated to be (x) payable by the taxable parent entity or entities of the Loan Parties (including Taxes imposed under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign law)), or (y) actually payable by the Loan Parties, in each case, within two years of such disposition as a result of any gain recognized by the Loan Parties in connection therewith.

"<u>Release Request</u>" means a release request executed by the Lead Borrower (or the Manager on its behalf) in substantially the form of <u>Exhibit B</u> hereto or any other form reasonably acceptable to the Required Lenders.

"<u>Relevant Governmental Body</u>" means the Federal Reserve Board or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board or the Federal Reserve Bank of New York, or any successor thereto.

"<u>Replacement Event</u>" has the meaning specified in the definition of "Term SOFR".

"<u>Reporting Date</u>" means the date that is three (3) Business Days prior to each Payment Date.

"<u>Requested Amount</u>" has the meaning specified in <u>Section 2.04(a)</u>.

"<u>Required Discount Rate</u>" means, with respect to any Appraisal, a per annum rate equal to the yield to maturity (adjusted to a "bond-equivalent basis" for an equivalent period) of the United States Treasury Security having a term closest to ten (10) years plus (B) 2.50%.

"<u>Required Lenders</u>" means, as of any date of determination, one or more Lenders representing more than 50% of the aggregate Commitment Amounts of all Lenders; <u>provided</u> that, following the end of the Availability Period, "Required Lenders" shall mean, as of any date of determination, Lenders holding Advances representing more than 50% of the aggregate outstanding principal amount of Advances as of such date; <u>provided</u>, <u>further</u>, that in the case of any consent required pursuant to Section 2.02(a)(iii) the consenting Lenders must include Goldman Sachs Bank USA, so long as it has a Commitment Amount or Advance outstanding; <u>provided</u>, <u>further</u>, that for the purpose of determining the Required Lenders needed for any waiver, amendment, modification or consent, the Commitment Amount and Advances of any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders.

"<u>Resolution Authority</u>" shall mean an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.

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"<u>Responsible Officer</u>" means (a) in the case of a corporation, partnership or limited liability company that, pursuant to its Constituent Documents, has officers, any chief executive officer, chief financial officer, chief administrative officer, president, senior vice president, 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, (b) 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) in the case of a limited liability company, any Responsible Officer of the sole member or managing member, acting on behalf of the sole member or managing member in its capacity as sole member or managing member, (d) in the case of a trust, a Responsible Officer of the trustee or the administrator of the trust, acting on behalf of such trust in its capacity as trustee, (e) in the case of any Borrower, an authorized signatory appointed pursuant to such Borrower's Constituent Documents, and (f) in the case of the Collateral Agent or the Administrative Agent, any officer within the Corporate Trust Office (or any successor group of the Collateral Agent or the Administrative Agent, as applicable), including any vice president, assistant vice president or officer of 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 corporate trust or agency matter is referred at the Corporate Trust Office 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 transaction.

"<u>Restricted Borrower Account</u>" means the Borrower Payment Account, the Borrower Interest Reserve Account, the Cure Contribution Holding Account, the Borrower Liability Reserve Account and each other Borrower Account designated by the Lead Borrower from time to time as a Restricted Borrower Account.

"<u>Restricted Payments</u>" means the declaration of any distribution or dividends or the payment of any other amount to any beneficiary or other equity investor in any Borrower on account of any Equity Interest in respect of any 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 Equity Interest in any Borrower or of any warrants, options or other rights to acquire the 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 Equity Interest in respect of any Borrower.

"<u>Re-Tested Variance Report</u>" means, with respect to any specific collection of Music Products that has been subject to a reduction of its related Specific Maximum LTV Ratio as a result of a negative Variance set forth in a Variance Report, a subsequent Variance Report (to be delivered no earlier than twelve (12) months following the date of the Variance Report that resulted in such reduction of the related Specific Maximum LTV Ratio) demonstrating that no negative Variance exists between (a) the actual Consolidated Net Publisher/Net Label Share attributable to such Music Products during the periods from the date of the Catalogue Appraisal that was the basis for the negative Variance that resulted in the reduction of the related Specific

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Maximum LTV Ratio through the date of such subsequent Variance Report and (b) the projected Consolidated Net Publisher/Net Label Share attributable to such Music Products for such period as set forth in such Catalogue Appraisal for such Music Products.

"<u>Revenue-Generating Agreement</u>" means, with respect to any Borrower, any contractual agreement whereby the Music Product Rights are administered, distributed or otherwise exploited for the benefit (directly or indirectly) of the Borrowers, and any other agreement that constitutes a Cashflow Asset.

"<u>Revenue-Generating Agreement Cure</u>" means, with respect to any Revenue-Generating Agreement that has been terminated or any material provision thereof has ceased to create an enforceable obligation against the related Obligor, or any Obligor has so asserted in writing: (i) such Revenue-Generating Agreement has been amended or renewed such that the related material provision has been rendered enforceable or such Obligor has rescinded such claim of unenforceability, (ii) such Revenue-Generating Agreement has been replaced with one or more other Revenue-Generating Agreements (including through amendments to existing Revenue-Generating Agreements increasing the amounts payable thereunder) that the Manager reasonably determines, in accordance with the Management Standard, would produce at least a comparable amount of Collections and Distributable Cash available to pay the Obligations, (iii) a new Appraisal of the Facility Pool has been delivered that reflects an Appraisal Value at least equal to the Appraisal Value of the Facility Pool as of immediately prior to such termination, unenforceability or assertion of unenforceability, or (iv) the Required Lenders have consented to such termination (or waived such unenforceability or assertion of unenforceability) in writing.

"<u>S&P</u>" means S&P Global Ratings.

"<u>Sanctioned Country</u>" means, at any time, a country or territory that is the target of comprehensive, country- or territory-wide Sanctions (as of the date of this Agreement, Cuba, Iran, North Korea, Syria, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic and the Crimea region of Ukraine).

"<u>Sanctioned Person</u>" means any Person: (a) listed in any Sanctions-related list of designated Persons maintained by the Government of the United States, the United Nations Security Council, the European Union, any Member State of the European Union or the United Kingdom; (b) resident, operating, or organized under the laws of, a Sanctioned Country; (c) the government of a Sanctioned Country or the Government of Venezuela or (d) who is directly or indirectly 50% or more owned or controlled by any such Person or Person(s).

"<u>Sanctions</u>" means any financial, economic, or trade sanctions laws, regulations, rules, decisions, embargoes and/or restrictive measures imposed, administered or enforced by: the Government of the United States, the United Nations Security Council, the European Union, any European Union member state or His Majesty's Treasury of the United Kingdom.

"<u>SEC</u>" means the Securities and Exchange Commission or any other Governmental Authority of the United States of America at the time administrating the Securities Act, the Investment Company Act or the Exchange Act.

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"<u>Secured Hedge Counterparty</u>" means (i) any Lender or any of its Affiliates or (ii) any other Person reasonably acceptable to the Required Lenders.

"<u>Secured Parties</u>" means each Agent, each Approved Account Bank, each Lender, each Secured Hedge Counterparty, each Affected Person and each Indemnified Party.

"<u>Secured Party Representatives</u>" has the meaning specified in <u>Section 11.09</u>.

"<u>Securities Act</u>" means the Securities Act of 1933, 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.

"<u>SOFR</u>" means a rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"<u>SOFR Borrowing</u>" means, as to any Borrowing, the Term SOFR Advances comprising such Borrowing.

"<u>SOFR Website</u>" means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.

"<u>Solvent</u>" means, with respect to any Person, that as of the date of determination, both (a) (i) the sum of such Person's debt (including contingent liabilities) does not exceed the present fair saleable value of such Person's present assets; (ii) such Person's capital is not unreasonably small in relation to its business as contemplated on the Closing Date or the date it becomes a party hereto, as applicable, and reflected in any of its financial projections; and (iii) such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (b) such Person is "solvent" within the meaning given that term and similar terms under the Bankruptcy Code, Section 271 of the Debtor and Creditor Law of the State of New York or other Applicable Laws relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standards No. 5).

"<u>Specific Maximum LTV Ratio</u>" means with respect to any specific collection of Music Products, 57.5%; <u>provided</u> that if a Variance Report delivered pursuant to <u>Section 5.01(r)</u> with respect to such Music Products shows a negative Variance of:

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&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) greater than or equal to 15%, but less than 20%, the Specific Maximum LTV Ratio for such Music Products shall reduce to 52.5% as of the date of delivery of such Variance Report;

&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) greater than or equal to 20% but less than 25%, the Specific Maximum LTV Ratio for such Music Products shall reduce to 47.5% as of the date of delivery of such Variance Report; 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) greater than or equal to 25% the Specific Maximum LTV Ratio for such Music Products shall reduce to 42.5% as of the date of delivery of such Variance Report;

<u>provided</u>, <u>further</u>, that, if a Specific Maximum LTV Ratio Cure applies to such collection of Music Products as of any applicable date of determination, the Specific Maximum LTV Ratio for such Music Products shall be deemed to be 57.5% for so long as such Maximum LTV Ratio Cure applies.

"<u>Specific Maximum LTV Ratio Cure</u>" means with respect to any specific collection of Music Products that have been subject to reduction of their related Specific Maximum LTV Ratio as a result of a negative Variance set forth in a Variance Report, a Re-Tested Variance Report has been delivered covering such Music Products; <u>provided</u> that, without the written consent of the Required Lenders, (i) no more than one Re-Tested Variance Report may be delivered with respect to such Music Products and (ii) the Specific Maximum LTV Ratio Cure shall only apply to such Music Products for the four (4) Payment Dates immediately following the date of the delivery of such Re-Tested Variance Report.

"<u>Specified Genre</u>" means [\*\*\*].

"<u>Specified Lender Side Letter</u>" means the letter agreement from WMG BC Holdco LLC **<u>Beethoven JV 1, LLC (or another entity reasonably acceptable to the applicable Lenders)</u>**, dated on or prior to the first Asset Acquisition Date for the benefit of certain lenders regarding specified regulatory requirements.

"<u>Specified Music Products</u>" means, as of any date of determination, all Music Products with respect to which (i) the related Acquisition Date occurred within the six (6) month period prior to such date of determination and (ii) for which an Appraisal, other than the Appraisal (if any) that was included as part of the Asset Acquisition Package, has not been obtained.

"<u>SPV Guarantor</u>" means the Initial SPV Guarantor and each other special purpose entity directly owning 100% of the equity interests of a Borrower that becomes a party hereto pursuant to <u>Section 2.01</u>.

"<u>Storage Facility</u>" means (a) each secure storage facility arranged by the Manager for the purpose of appropriately securing physical Master Recordings (in line with its customary practice and consistent with the Management Standard), (b) any location owned or leased by any

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Loan Party or an Affiliate of such Borrower, or (c) any other storage facility approved by the Required Lenders from time to time, each of the foregoing as identified on <u>Schedule 2</u> hereto.

"<u>Storage Facility Access Letter</u>" means a letter, in form and substance reasonably acceptable to the Required Lenders, by and among the landlord, owner, and/or any other Person controlling any Storage Facility, the applicable Borrower, the Manager and the Administrative Agent pursuant to which such landlord, owner or other Person, as applicable, among other things, waives or subordinates any Lien on any Collateral benefiting such Person and agrees to permit the Required Lenders (or their agents) to enter such Storage Facility.

"<u>Subject Laws</u>" has the meaning specified in <u>Section 4.01(f)</u>.

"<u>Subsidiary</u>" means, with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof; <u>provided</u> that in determining the percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a "qualifying share" of the former Person shall be deemed to be outstanding.

"<u>Subsidiary Guarantor</u>" means, each wholly-owned Subsidiary from time to time owned or acquired by a Borrower (directly or indirectly) that accedes to this Agreement as a Subsidiary Guarantor.

"<u>Supported QFC</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>Taxes</u>" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, and all liabilities (including penalties, additions and interest) with respect thereto. 

"<u>Term SOFR</u>" means, for any calculation with respect to a Term SOFR Advance, (a) the Term SOFR Reference Rate for a tenor comparable to the applicable Interest Accrual Period on the day (such day, the "<u>Periodic Term SOFR Determination Day</u>") 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>, however, that if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has not occurred, then, at the option of the Lead Borrower, either (i) 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

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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 or (ii) Term SOFR shall be deemed to equal Daily Simple SOFR for each day the applicable Advance remains outstanding, and (b) for any calculation with respect to a Base Rate Advance on any day, the Term SOFR Reference Rate for a tenor of one month on the day (such day, the "<u>Base Rate Term SOFR Determination Day</u>") 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>, however, that if as of 5:00 p.m. (New York City time) 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; <u>provided</u>, <u>further</u>, that if Term SOFR determined as provided above (including pursuant to the proviso under <u>clause (a)</u> or <u>clause (b)</u> above) shall ever be less than the Floor, then Term SOFR shall be deemed to be the Floor.

"<u>Term SOFR Administrator</u>" means CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by the Required Lenders in consultation with the Lead Borrower.

"<u>Term SOFR Advance</u>" means an Advance that bears interest at a rate based on Term SOFR, other than pursuant to <u>clause (c)</u> of the definition of "Base Rate".

"<u>Term SOFR Reference Rate</u>" means the forward-looking term rate based on SOFR.

"<u>Trademark License</u>" means any written agreement now or hereafter in existence granting to any Borrower, or pursuant to which any Borrower grants to any other Person, any right to use any trademark material to the operations or business of such Borrower.

"<u>Trademark Security Agreement</u>" means a security agreement in substantially the form attached hereto as <u>Exhibit F-3</u>.

"<u>Trademarks</u>" means, collectively, all United States, state and non-U.S. trademarks, service marks, trade names, trade dress, internet domain names, designs, logos, slogans and other indicia of source or origin, whether registered or unregistered, registrations and pending applications to register the foregoing, together with (i) all goodwill of any business connected with the use thereof or symbolized thereby, (ii) all claims for, and rights to sue for, past, present or future infringement of any of the foregoing and (iii) all income, fees, royalties, damages and payments now or hereafter due or payable with respect to any of the foregoing, including damages and payments for past, present or future infringements thereof.

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"<u>Type</u>", when used in reference to any Advance or Borrowing, refers to whether the rate of interest on such Advance, or on the Advances comprising such Borrowing, is determined by reference to Term SOFR or Base Rate.

"<u>UCC</u>" means the Uniform Commercial Code, as from time to time in effect in the State of New York; <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 (for the benefit of the Secured Parties) 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 "UCC" 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.

"<u>UK Financial Institutions</u>" means any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.

"<u>UK Resolution Authority</u>" means the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.

"<u>Unadjusted Benchmark Replacement</u>" means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"<u>Undisclosed Administration</u>" means, in relation to a Lender or its direct or indirect parent company that is a solvent person, the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian, or other similar official by a supervisory authority or regulator under or based on the law in the country where such Lender or such parent company is subject to home jurisdiction, if applicable law requires that such appointment not be disclosed.

"<u>Undrawn Fee</u>" has the meaning set forth in the Lender Fee Letter.

"<u>Unmatured Event of Default</u>" means any event or condition which, with the passage of time, the giving of notice, or both, would constitute an Event of Default.

"<u>U.S.</u>" or "<u>United States</u>" means the United States of America.

"<u>U.S. Government Securities Business Day</u>" means any day except for (a) a Saturday, (b) a Sunday or (c) 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.

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"<u>U.S. Person</u>" means a "United States person" as defined in section 7701(a)(30) of the Code.

"<u>U.S. Special Resolution Regimes</u>" has the meaning specified in <u>Section 11.20</u>.

"<u>U.S. Tax Compliance Certificate</u>" has the meaning specified in <u>Section 11.03(g)(ii)(B)(3)</u>.

"<u>Valuation Threshold</u>" means, as of any date of determination with respect to any assets proposed to be acquired, (a) 20.0% multiplied by (b) the Aggregate Collateral Value as of such date (without giving effect to such asset acquisition).

"<u>Variance</u>" means with respect to any specific collection of Music Products the difference between (i) the actual Consolidated Net Publisher/Net Label Share attributable to such asset or assets for the period specified in the related Appraisal or asset valuation model, as applicable and (ii)(A) if an Appraisal is received, the projected Net Publisher/Net Label Share attributable to such asset or assets in the Appraisal relating to a specified period or (B) if no Appraisal is received, the applicable asset valuation model attributable to such asset or assets for a specified period as outlined in the related Asset Acquisition Package, delivered to the Borrower at the time of acquisition.

"<u>Variance Report</u>" means a variance report, prepared by the Manager and, delivered pursuant to <u>Section 5.01(r)</u>, showing the Variance for a specific collection of Music Products; provided that each such report shall be calculated using methodology and assumptions reasonably acceptable to the Required Lenders; provided, further, that, for the avoidance of doubt, any Variance attributable to a Permitted Release or in respect of a Permitted Securitization in the twelve month period preceding the date of such Variance Report shall be disregarded for the purpose of such Variance Report.

"<u>Warner/Bain Holders</u>" means Permitted Holders described in clauses (ii) and (iii) of the definition thereof.

"<u>Withdrawal Liability</u>" 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.

"<u>Write-Down and Conversion Powers</u>" means, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised

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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.

"<u>Writer's Share of Public Performance</u>" means one hundred (100%) percent of any income payable to a Person in their capacity as a songwriter and/or composer by any Administrator as the so-called "writer's share" solely in relation to the Musical Compositions with respect to the public performance thereof or related rights therein anywhere in the universe.

**Section 1.02<u>Rules of Construction</u>**. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires (a) singular words shall connote the plural as well as the singular, and vice versa (except as indicated), as may be appropriate, and "or" is not exclusive, (b) the words "herein," "hereof" and "hereunder" and other words of similar import used in this Agreement refer to this Agreement as a whole and not to any particular article, schedule, section, paragraph, clause, exhibit or other subdivision, (c) the headings, subheadings and table of contents set forth in this Agreement are solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect the meaning, construction or effect of any provision hereof, (d) references in this Agreement to "include" or "including" shall mean include or including, as applicable, without limiting the generality of any description preceding such term, and for purposes hereof 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, (e) 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, (f) any definition of or reference to any Facility Document, agreement, instrument or other document herein shall be construed as referring to such 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), (g) any reference herein 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), (h) any reference to any law or regulation herein shall refer to such law or regulation as amended, modified or supplemented from time to time and (i) each reference to time without further specification shall mean New York City Time.

**Section 1.03<u>Computation of Time Periods</u>**. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" both mean "to but excluding." Periods of days referred to in this Agreement shall be counted in calendar days unless Business Days are expressly prescribed.

**Section 1.04<u>Certain Additional Rules of Construction Regarding the Borrowers, the Collateral and the Agents</u>**. For all purposes of this Agreement, except as otherwise expressly provided herein:

&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)Any consent, direction or other action required or contemplated to be given or taken, as the case may be, by any Loan Party under or in connection with any of the Facility Documents, may be given or taken on its behalf by the Lead Borrower, or for so long as no Manager Termination Event has occurred and is continuing, the Manager. Any notice or other document or information required to be delivered to any Borrower shall be deemed delivered if delivered to the Lead Borrower, or for so long as no Manager Termination Event has occurred and is continuing, the Manager.

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&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)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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Notwithstanding any other provision of this Agreement to the contrary, all monetary calculations under this Agreement shall be 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;(d)Each reference to the Collateral Agent herein, except as otherwise expressly provided or unless the context otherwise requires, shall be deemed to be a reference to the Collateral Agent for the benefit of the Secured Parties.

**Section 1.05<u>Divisions</u>**. 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<u>Rates</u>**. The Agents do not warrant or accept any responsibility for, and shall not have any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to Base Rate, the Term SOFR Reference Rate or Term SOFR or Daily Simple 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, Term SOFR or Daily Simple SOFR or any other Benchmark prior to its discontinuance or unavailability, or (b) the effect, implementation or composition of any Conforming Changes. The Agents and their respective affiliates or other related entities may engage in transactions that affect the calculation of Base Rate, the Term SOFR Reference Rate, Term SOFR or Daily Simple 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 Borrowers. The Required Lenders (in consultation with the Lead Borrower) may select information sources or services in their reasonable discretion to ascertain Base Rate, the Term SOFR Reference Rate, Term SOFR or Daily Simple SOFR or any other Benchmark, or any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this Agreement, and shall have no liability to 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>BORROWERS; ADVANCES AND ACQUISITIONS**

**Section 2.01<u>Loan Parties</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)In addition to the initial Loan Parties identified on the signature pages hereto, additional Persons may be added as "Borrowers" and/or "Guarantors" each of which shall be an entity that **<u>is located in the United States or has appointed an agent for service of</u>**

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**<u>process in the state of New York,</u>** is free and clear of all liens and material liabilities and otherwise complying with the provisions of <u>Section 5.03</u>, and the execution by such Person of a joinder to this Agreement and the other Facility Documents in substantially the form attached hereto as <u>Exhibit A</u> (each, a "<u>Joinder Agreement</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)Each Loan Party shall be jointly and severally liable for all Obligations incurred by any Loan Party hereunder or under any other Facility Documents (whether existing at the time it became a Loan Party hereunder or subsequently incurred), and shall be responsible for compliance with all other terms of this Agreement and the other Facility Documents applicable to a Borrower, from and after the date it becomes a Loan Party hereunder until such time it is released therefrom pursuant to <u>Section 8.04</u> hereof.

**Section 2.02<u>Asset Acquisition Procedures</u>**. (a) A Borrower may from time to time acquire Permitted Assets, subject to and in accordance with the terms, conditions and procedures set forth in this <u>Section 2.02</u> (the "<u>Asset Acquisition Procedures</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 Lead Borrower shall deliver to the Lenders a certificate of a Responsible Officer of the Lead Borrower, certifying that after giving *pro forma* effect to the acquisition of such Permitted Assets the Acquisition/Disposition LTV Ratio as of the related Asset Acquisition Date will be less than or equal to the Maximum LTV Ratio then in effect and attaching detailed calculations of the Acquisition/Disposition LTV Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Lead Borrower shall deliver, to the extent available, the related Asset Acquisition Package deliverables to the Lenders five (5) Business Days, and, to the extent not provided by such date, the Lead Borrower shall deliver all remaining related Asset Acquisition Package deliverables at least two (2) Business Days prior to the acquisition of such Permitted 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)The Required Lenders shall have provided their written consent to such acquisition in the event that the proposed Permitted Assets have an aggregate purchase price in excess of either (x) $100,000,000 or (y) an amount equal to 30.0% of the Aggregate Collateral Value as of such Asset Acquisition 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)No assets may be acquired by any Loan Party other than assets of the type described in the definitions of Music Products, Music Product Rights, and Music Publishing and Master Distribution Rights and related assets (collectively, "<u>Permitted Assets</u>"); <u>provided</u>, that the Manager has reasonably demonstrated to the Required Lenders that any acquired Artist Catalogue must have a weighted average vintage of [\*\*\*], with the weighting based on revenue per song; <u>provided</u>, <u>further</u> that ordinary course additions or updates, replacements, renewals and similar amendments and modifications with respect to existing Artist Catalogues that do not cause any Borrower to incur any liabilities other than Permitted Liabilities or that do not involve any additional cash (or equivalent) consideration payable by any Loan Party shall not be considered as asset acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 acquisition of such Permitted Assets may not cause any Borrower to incur any liabilities other than the following (collectively, "<u>Permitted Liabilities</u>"): (A) liabilities that will be paid in full in cash upon the consummation of such acquisition, (B) liabilities that are payable solely from Collections received in respect of the Permitted Assets being acquired and appropriately reflected in the related Appraisal, (C) Excepted Earn-out Liabilities subject to the requirements of <u>Section 9.03</u> and (D) Immaterial Liabilities and (E) pre-funded liabilities that are fully reserved for (each such fully-reserved prefunded liability, a "<u>Deferred Purchase Price Liability</u>") in one or more Borrower Accounts (each such Borrower Account, a "<u>Borrower Liability</u> 

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<u>Reserve Account</u>") established in the name of such Borrower for the purpose of reserving for and paying such liabilities on or before the consummation of such acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such Permitted Assets, upon acquisition, shall constitute Collateral subject to this Agreement, and the Intellectual Property Schedule shall be updated to reflect any additional Intellectual Property assets so acquired. The Manager and each of the Borrowers shall take such additional actions, including without limitation the delivery of any physical Collateral and the Storage Facility Access Letter to a Storage Facility, subject to arrangements reasonably satisfactory to the Required Lenders, the filing of any additional financing statements and the registering or recording of any Intellectual Property Security Agreements, as may be necessary or advisable or as otherwise reasonably requested by any Agent to ensure a first priority perfected security interest in favor of the Collateral Agent (for the benefit of the Secured Parties) in the Permitted Assets being acquired, and to the extent requested by the Required Lenders, deliver to the Lenders a legal opinion of external counsel covering UCC matters, in form and substance reasonably satisfactory to the Required 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)To the extent any such Permitted Assets are acquired by a Borrower from or through one or more Affiliates, any Manager or any Affiliate of a Manager, if requested by the Required Lenders, the Manager and the Borrowers shall cause to be delivered to the Lenders a legal opinion of external counsel covering true sale or contribution and substantive non-consolidation matters, in form and substance reasonably satisfactory to the Required 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;(a)Following consummation of the acquisition of any Permitted Assets pursuant to the foregoing <u>clause (a)</u>, the Borrowers shall (i) unless waived by the Required Lenders, promptly deliver to the related Lenders a true and correct copies of the related Asset Transfer Agreement for such acquisition, which shall be subject to reasonable and appropriate redactions to preserve personally identifiable information with respect to the seller and the acquisition price for the Permitted Asset(s) thereunder and (ii) promptly deliver such other information and documents specifically related to such acquisition as the Required Lenders or any Lender may reasonably request, to the extent the same are in the possession of the Borrowers.

**Section 2.03 <u>Committed Advance Facility</u>**. (a) Subject to the express conditions set forth in <u>Section 3.02</u> and <u>Section 3.03</u>, each Conduit Lender, if any, may, in its sole discretion, and if such Conduit Lender determines that it will not make (or it does not in fact make) an Advance or any portion of an Advance, its related Committed Lender(s) severally agrees to, or, if there is no Conduit Lender with respect to any Committed Lender, such Committed Lender severally agrees to make loans to the Borrowers (each, a "<u>Advance</u>"), from time to time during the Availability Period, in an aggregate amount not greater than the lesser of (x) such Lender's Commitment Amount, (y) such Lender's Lender Percentage of the Maximum Advance Amount (or the portion thereof not being made by its related Conduit Lenders), and (z) such Lender's Lender Percentage of the related Initial Advance Amount. Each Lender's Commitment Amount shall terminate and be reduced to zero automatically upon the end of the Availability 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;(a)[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;(b)Each SOFR Borrowing shall be in an aggregate amount of $100,000 or a larger multiple of $100,000; <u>provided</u> that a SOFR Borrowing may be in an aggregate amount that is equal to the entire unused balance of the Maximum Advance Amount. Each Base Rate Borrowing shall be in an aggregate amount equal to $100,000 or a larger multiple of $100,000; <u>provided</u> that a Base Rate Borrowing may be in an aggregate amount that is equal to the entire

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unused balance of the Maximum Advance Amount. Borrowings of more than one Type may be outstanding at the same time.

&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)Notwithstanding anything herein or in any other Facility Document to the contrary, at no time will a Conduit Lender be obligated to make Advances hereunder. While it is the intent of each Conduit Lender to fund each requested Advance through the issuance of Commercial Paper, the parties acknowledge that if any such Conduit Lender is unable, or determines that it is undesirable, to issue Commercial Paper to fund all or any portion of the Advances, or is unable to repay such Commercial Paper upon the maturity thereof, such Conduit Lender may assign all or any portion of its Advances to its Program Support Providers at any time pursuant to the Program Support Agreement or to its Committed Lenders pursuant to Section 12.01.

**Section 2.04<u>Making of the Advances</u>**. (a) Subject to the terms and conditions of <u>Section 2.03</u>, if the Borrowers desire to request a Borrowing under this Agreement, the Borrowers shall give the Administrative Agent a written notice, appropriately completed and signed by a Responsible Officer of the Lead Borrower, or may be given by telephone to the Administrative Agent (if promptly confirmed by such a written notice consistent with such telephonic notice) (each, a "<u>Notice of Borrowing</u>") for such Borrowing (which notice shall be irrevocable and effective upon receipt) not later than 11:00 a.m. (New York City time) (A) in the case of a SOFR Borrowing, two (2) U.S. Government Securities Business Days prior to the date of the requested Borrowing (or such shorter notice as the Lenders, collectively, may agree in writing) or (B) in the case of a Base Rate Borrowing, two (2) Business Days prior to the date of the requested Borrowing (or such shorter notice as the Lenders, collectively, may agree in writing), setting forth (i) the related Requested Amount, (ii) a calculation of each of the LTV Ratio and the Acquisition/Disposition LTV Ratio, as determined both immediately before and after giving *pro forma* effect to the contemplated acquisition and the requested Borrowing, and (iii) the DSCR (after giving *pro forma* effect to the proposed Borrowing), which calculation shall demonstrate compliance with <u>Section 3.03(b)</u>. A Notice of Borrowing received after 1:00 p.m. shall be deemed received on the following Business Day unless otherwise waived by the Lenders (with such waiver being conclusively evidenced by the funding of the requested Borrowing on the proposed borrowing date). The proceeds of all Advances shall be deposited in the Acquisition Account.

Promptly on the same day following receipt of a Notice of Borrowing in accordance with this <u>Section 2.04</u>, the Administrative Agent shall forward a copy of the same to each Lender (or its related Managing Agent) and advise each applicable Lender (or a Managing Agent on behalf of its Lenders) of the details thereof and of the amounts of such Lender's Advance required to be made as part of the requested Borrowing. Each Notice of Borrowing shall be substantially in the form of <u>Exhibit C</u> hereto, dated the date the request for the related Borrowing is being made, and shall be appropriately completed and signed by a Responsible Officer of each Borrower (or the Manager on its behalf). The proposed Borrowing Date specified in each Notice of Borrowing shall occur during the Availability Period, and the amount of the Borrowing requested in such Notice of Borrowing (the "<u>Requested Amount</u>") shall be equal to at least $100,000 (or less, if agreed to by the Lenders in their sole and absolute discretion but not greater than the related Initial Advance Amount). Each Managing Agent shall promptly advise its related Conduit Lender, if any, of any notice given pursuant to this <u>Section 2.04(a)</u> and shall promptly thereafter (but in no event later than 10:00 a.m. (New York City time) on the date of such Advance) notify the Administrative Agent, the Borrowers and the related Committed Lender(s) whether such

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Conduit Lender has determined to make all or any portion of the Advances requested by such Notice of Borrowing that are to be made by its related Committed 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;(a)<u>Funding by Lenders</u>. Subject to the terms and conditions herein, each Lender shall make its Lender Percentage (as such Lender Percentage may be reduced or increased from time to time in accordance with the terms hereof) of the applicable Requested Amount on each Borrowing Date (x) by wire transfer of immediately available funds by 11:00 a.m. on such Borrowing Date to the Administrative Agent pursuant to wiring instructions provided by the Administrative Agent, and the Administrative Agent will hold and pay such funds to the Borrowers, on behalf of the Lenders, by wire transfer of immediately available funds by 2:00 p.m. on such Borrowing Date to the Acquisition Account, or (y) if requested in writing (email is acceptable) by the Administrative Agent, by wire transfer of immediately available funds by 2:00 p.m. on such Borrowing Date directly to the Acquisition Account pursuant to wiring instructions provided by the Administrative Agent (at the written direction of the Lead Borrower).

**Section 2.05<u>Evidence of Indebtedness</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)<u>Maintenance of Records by Lenders</u>. Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrowers to it and resulting from the Advances made by such Lender to the Borrowers, from time to time, including the amounts of principal and interest thereon and paid to it, from time to time hereunder; <u>provided</u>, <u>however</u>, that in case of a conflict between the Register and the records of such Lender, the Register shall prevail absent manifest error.

&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>Maintenance of Records by Administrative Agent</u>. The Administrative Agent shall maintain records (including the Register, as described in <u>Section 12.01(c)</u>) in which it shall record (i) the amount of each Advance made hereunder, (ii) the amount of any principal and interest thereon due and payable or to become due and payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received by each Approved Account Bank hereunder for the account of the Lenders and each Lender's share thereof. Notwithstanding anything to the contrary herein, the Required Lenders (in consultation with the Lead Borrower) shall be responsible for calculating and confirming any and all amounts due, interest, compliance with financial covenants and each other trigger or rate hereunder and under the other Facility Documents and each such calculation and confirmation shall be conclusive and binding for all purposes, absent manifest error or contrary instruction by 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;(c)<u>Effect of Entries</u>. The entries made in the records maintained pursuant to paragraph (a) or (b) of this Section shall be prima facie evidence, absent obvious error, of the existence and amounts of the obligations recorded therein; <u>provided</u> that the failure of any Lender or the Administrative Agent to maintain such records or any error therein shall not in any manner affect the obligation of the Borrowers to repay the Advances and other Obligations hereunder in accordance with the terms of this Agreement.

**Section 2.06<u>Payment of Principal, Interest and Certain Fees</u>**. The Borrowers shall pay principal and Interest on the Advances 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;(a)100% of the outstanding principal amount of each Advance, together with all accrued and unpaid Interest thereon, shall be due and payable on the Final Maturity 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)Interest shall accrue on the unpaid principal amount of each Advance at the applicable Interest Rate from the related Borrowing Date until such principal amount is paid in full in cash.

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&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)Accrued Interest on each Advance shall be due and payable in arrears (x) on each Payment Date, and (y) in connection with any prepayment in cash of the Advances pursuant to <u>Section 2.07(a)</u>; <u>provided</u> that (i) with respect to any prepayment in full in cash of the Advances outstanding, accrued Interest on such amount to but excluding the date of prepayment may be payable on such date or as otherwise agreed to between the Lenders and the Borrowers and (ii) with respect to any partial prepayment of the Advances outstanding occurring on any Optional Prepayment Date, accrued Interest on such amount to but excluding such Optional Prepayment Date may be reserved in a Restricted Borrower Account and shall be payable on the immediately following Payment Date 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;(d)Subject to clause (e) below, the obligation of the Borrowers to pay the Obligations, including, but not limited to, the obligation of the Borrowers 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 2.15</u>, <u>Section 2.16</u> and <u>Article IX</u>) and thereof, under any and all circumstances and irrespective of any setoff, counterclaim or defense to payment which any Borrower or any other Person may have or have had against any Secured Party or any other Person (other than a defense that payment was made); <u>provided</u> that except as described in clauses (a) and (c) above, all amounts due to be paid by the Borrowers hereunder and under the Facility Documents shall be payable solely to the extent of Distributable Cash (including applicable amounts reserved in and withdrawn from applicable Borrower Accounts) 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;(e)[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;(f)Each Borrower shall pay principal and Interest on the Advances and all other Obligations in accordance with the Priority of Payments as set forth in <u>Article IX</u>.

**Section 2.07<u>Prepayment of Advances and Commitment Reductions</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)<u>Optional Prepayments</u>**.** The Borrowers may, from time to time on any Business Day, voluntarily prepay any outstanding Advances in whole or in part, together with all amounts due pursuant to <u>Sections 2.06(c)</u> and <u>2.12</u> (each, an "<u>Optional Prepayment</u>"); <u>provided</u> that (i) the Lead Borrower shall have delivered to the Administrative Agent written notice of such Optional Prepayment, appropriately completed and signed by a Responsible Officer (or the Manager on its behalf) of the Lead Borrower, or may be given by telephone to the Administrative Agent (if promptly confirmed by such a written notice consistent with such telephonic notice) (such notice, a "<u>Notice of Prepayment</u>") in the form of <u>Exhibit D</u> hereto by not later than 11:00 a.m. (New York City time) (A) in the case of a SOFR Borrowing, two (2) U.S. Government Securities Business Days before the date of prepayment or (B) in the case of prepayment of a Base Rate Borrowing, one (1) Business Day before the date of prepayment, and (ii) in the case of any Optional Prepayment occurring on a date other than a Payment Date (each, an "<u>Optional Prepayment Date</u>"), the Borrowers shall concurrently pay, or reserve for in a Restricted Borrower Account, all other Obligations accrued as of the Optional Prepayment Date that would be payable prior to or *pari passu* with such Optional Prepayment pursuant to the Priority of Payments on the following Payment Date. Each Notice of Prepayment shall specify (x) the date of such Optional Prepayment and (y) the principal amount of each Borrowing or portion thereof to be prepaid. Any Notice of Prepayment received by the Administrative Agent after 1:00 p.m. shall be deemed received on the next Business Day. Upon receipt of such Notice of Prepayment, the Administrative Agent shall promptly forward each Lender a copy thereof. Each such Notice of Prepayment shall be irrevocable (but may be conditioned upon the occurrence of certain refinancing events set forth in such Notice of Prepayment) and effective upon the date received and shall be dated the date such notice is given, signed by a Responsible Officer of each Borrower and otherwise appropriately

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completed. Each prepayment of any Advance by the Borrowers pursuant to this <u>Section 2.07(a)</u> shall in each case be in a principal amount of at least $100,000 or, if less, the entire outstanding principal amount of the Advances of the Borrowers. If a Notice of Prepayment is given by the Borrowers, the Borrowers shall make such prepayment and the payment amount specified in such notice shall be due and payable on the date specified therein (including, but not limited to, any accrued Interest and applicable fees). The Borrowers shall ensure that amounts sufficient to pay the full payment amount is available in the Borrower Payment Account in immediately available funds by no later than 11:00 a.m. on the date of such Optional Prepayment. For the avoidance of any doubt, the Borrowers may only provide a Notice of Prepayment to prepay Advances that are outstanding on the date such Notice of Prepayment is delivered and may not provide a Notice of Prepayment to prepay any future Advances.

&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>Additional Prepayment Provisions</u>. Each prepayment of principal pursuant to this <u>Section 2.07</u> shall be subject to <u>Sections 2.06(c)</u> and <u>2.12</u> and the Priority of Payments, and shall be applied to the Advances as directed by the Borrowers.

&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)<u>Interest on Prepaid Advances</u>. Except to the extent reserved in a Restricted Borrower Account for payment on the following Payment Date in connection with an Optional Prepayment Date, in accordance with and pursuant to <u>Section 2.06(c)</u>, the Borrowers shall pay all accrued and unpaid Interest on the Advances that are prepaid on the date of such prepayment.

&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)<u>Mandatory Prepayments</u>. In the event of any Permitted Release pursuant to <u>Section 8.04(a)(iv)</u>, the Borrowers shall be obligated to prepay, in accordance with the Priority of Payments, the Advances in an amount (such amount, the "<u>Mandatory Prepayment Amount</u>") equal to the lesser of (i) greater of (x) related Release Proceeds and (y) the Minimum Release Price and (ii) the amount necessary after giving pro forma effect to such Permitted Release, to cause the LTV Ratio to be less than or equal to the Maximum LTV Ratio, notwithstanding that such mandatory prepayment shall still constitute an "Optional Prepayment" 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;(e)<u>Commitment Reduction</u>. The Borrowers may from time to time on any Business Day voluntarily reduce the Maximum Advance Amount and, on a *pro rata* basis, the Commitment Amount of each Lender by written notice delivered to the Administrative Agent (who shall promptly forward a copy of the same to each Lender) at least two (2) Business Days prior to the effective date of such reduction. No such reduction shall reduce the Commitment Amount of any Lender below the then aggregate outstanding principal amount of all Advances of such Lender unless such reduction is accompanied by an Optional Prepayment in the amount by which such Advances would exceed any such reduced Commitment Amount.

**Section 2.08<u>Delayed Funding</u>**. After any Borrower delivers a Notice of Borrowing pursuant to <u>Section 2.03</u> hereof, a Designated Delay Lender (or the related Managing Agent on its behalf), may, not later than 4:00 p.m. New York City time on the date that is one (1) Business Day prior to the proposed Borrowing date, deliver a written notice (a "<u>Delayed Funding Notice</u>", and the date of such delivery, the "<u>Delayed Funding Notice Date</u>") to such Borrower of its intention to fund the related Borrowing (such amount, the "<u>Delayed Amount</u>") on a date (the date of such funding, the "<u>Delayed Funding Date</u>") that is on or before the thirty-fifth (35th) day following the date of such request for a Borrowing (or if such day is not a Business Day, then on the next succeeding Business Day) rather than on the requested Borrowing date; <u>provided</u> that in no event shall the aggregate unfunded Delayed Amount at any time exceed one hundred percent (100%) of the Lender Percentage of the Maximum Advance Amount to be funded by such Designated Delay Lender. By delivery of a Delayed Funding Notice, each Designated Delay Lender shall be deemed to represent and warrant and the effectiveness of such Delayed Funding Notice shall be subject to the conditions that (x) charges relating to the "liquidity coverage ratio"

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under Basel III have been incurred on the related Committed Lender's interests or obligations hereunder and (y) it is seeking or has obtained a delayed funding option in transactions similar to the transactions contemplated hereby as of the date of such Delayed Funding Notice. Any Designated Delay Lender (or its related Managing Agent, as applicable) that delivers a Delayed Funding Notice with respect to any Borrowing date shall be referred to herein as a "<u>Delaying Lender</u>" with respect to such Borrowing date. If the applicable conditions to any Borrowing described in <u>Section 3.02</u> and <u>Section 3.03</u> are satisfied on the requested Borrowing date, there shall be no conditions whatsoever to the obligation of the Committed Lenders to fund the requested amount on the related Delayed Funding Date. On each Delayed Funding Date, the Delaying Lender shall fund an aggregate amount equal to the Delayed Amount for such Delayed Funding Date. If the Borrowers are unable to borrow the full amount of the requested Borrowing from the Lenders that are not Delaying Lenders, then no later than one (1) Business Day before the requested Borrowing Date and with respect to any Advance, the Borrowers may either (i) revoke the related Notice of Borrowing, or (ii) reduce the amount of the Advance requested in the related Notice of Borrowing.

**Section 2.09<u>Maximum Lawful Rate</u>**. 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 Borrowers 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 Borrowers 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 made to the Borrowers.

**Section 2.10<u>Several Obligations</u>**. 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, no Agent 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 to be made by such other Lender.

**Section 2.11<u>Increased Costs</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)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;&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 special deposit, compulsory loan, insurance charge or similar requirement**<u>)</u>** against assets of, deposits with or for the account of, or credit extended or participated in by, any Affected 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;&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 clauses (b) through (d) 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;&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 any Advance made by such Affected Person;

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and the result of any of the foregoing shall be to increase the cost to such Affected Person of making, converting to, continuing or maintaining any Advance or of maintaining its obligation to make any such Advance, or to reduce the amount of any sum received or receivable by such Affected Person (whether of principal, interest or any other amount) then, upon request of such Affected Person, the Borrowers will pay to such Affected Person such additional amount or amounts as will compensate such Affected Person for such additional costs incurred or reduction suffered.

&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>Capital Requirements</u>. If any Affected Person determines that any Change in Law affecting such Affected Person regarding capital or liquidity requirements, has or would have the effect of reducing the rate of return on such Affected Person's capital as a consequence of this Agreement, the Commitments of such Lender or the Advances made by such Lender, to a level below that which such Affected Person could have achieved but for such Change in Law (taking into consideration such Affected Person's policies with respect to capital adequacy), then from time to time the Borrowers will pay to such Affected Person such additional amount or amounts as will compensate such Affected Person for any such reduction suffered.

&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)<u>Certificates for Reimbursement</u>. A certificate of an Affected Person setting forth the amount or amounts necessary to compensate such Affected Person as specified in paragraph (a) or (b) of this Section and delivered to the Borrowers, shall be conclusive absent manifest error. The Borrowers shall pay such Affected Person the amount shown as due on any such certificate on the next Payment Date in accordance with the Priority of Payments as long as such certificate is received at least five (5) Business Days prior to such Payment Date or if not, on the immediately succeeding Payment 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;(d)<u>Mitigation</u>. Upon the occurrence of any event giving rise to the Borrowers' obligation to pay additional amounts to a Lender pursuant to clause this <u>Section 2.11</u> and <u>Section 11.03</u>, such Lender will (i) 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 Borrowers 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 or (ii) take such other measures as such Lender may deem reasonable, in each case, if as a result thereof the circumstances which would cause such Lender to be an Affected Person would cease to exist or the additional amounts which would otherwise be required to be paid to such Lender pursuant to this <u>Section 2.11</u> and <u>Section 11.03</u> would be materially reduced and if, as determined by such Lender in its sole discretion, the making, issuing, funding or maintaining of such Advances through such other office or in accordance with such other measures, as the case may be, would not otherwise adversely affect such Advances or the interests of such Lender. The Borrowers hereby agree to pay all reasonable and documented costs and expenses incurred by any Lender in connection with any such designation or other measures.

&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)<u>Delay in Requests</u>. Failure or delay on the part of any Affected Person to demand compensation pursuant to this <u>Section 2.11</u> shall not constitute a waiver of such Affected Person's right to demand such compensation; <u>provided</u> that the Borrowers shall not be required to compensate an Affected Person pursuant to this <u>Section 2.11</u> for any increased costs incurred or reductions suffered more than nine months prior to the date that such Affected Person notifies the Borrowers of the Change in Law giving rise to such increased costs or reductions, and of such Affected Person's intention to claim compensation therefor (except that, if the Change in

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Law giving rise to such increased costs or reductions is retroactive, then the nine-month period referred to above shall be extended to include the period of retroactive effect thereof).

**Section 2.12<u>Compensation; Breakage Payments</u>**. In the event of (a) the payment of any principal of any Term SOFR Advance other than on the last day of the Interest Accrual Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Term SOFR Advance other than on the last day of the Interest Accrual Period applicable thereto (including as a result of an Event of Default), (c) the failure to borrow, convert, continue or prepay any Term SOFR Advance on the date specified in any notice delivered pursuant hereto, or (d) the assignment of any Term SOFR Advance other than on the last day of the Interest Accrual Period applicable thereto as a result of a request by the Borrowers pursuant to Section 12.01(h), then, in any such event, the Borrowers shall compensate each Lender for any loss, cost and expense attributable to such event, including any loss, cost or expense arising from the liquidation or redeployment of funds or from any fees payable (including, in the case of any Conduit Lender, the applicable Program Support Provider(s) through its Program Support Agreement or funds obtained by issuing promissory notes or obtaining deposits or loans from third parties, but only to the extent that the related Committed Lender would be entitled to any payment hereunder). A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrowers and shall be conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.

**Section 2.13<u>Inability to Determine Rates</u>**. Subject to <u>Section 2.18,</u> if, on or prior to the first day of any Interest Accrual Period for any Term SOFR Advance:

&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 Required Lenders determine (which determination shall be conclusive and binding absent manifest error) that "Term SOFR" cannot be determined pursuant to the definition thereof (including, for the avoidance of doubt, any determination of Daily Simple SOFR in accordance with the provisions of such definition), 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)the Required Lenders determine that for any reason in connection with any request for a Term SOFR Advance or a conversion thereto or a continuation thereof that Term SOFR for any requested Interest Accrual Period with respect to a proposed Term SOFR Advance does not adequately and fairly reflect the cost to such Lenders of making and maintaining such Advance, and the Required Lenders have provided notice of such determination to the Administrative Agent,

(c)then, in each case, the Administrative Agent will promptly so notify the Borrowers and each Lender.

(d)Upon notice thereof by the Administrative Agent to the Borrowers, any obligation of the Lenders to make Term SOFR Advances, and any right of the Borrowers to continue Term SOFR Advances or to convert Base Rate Advances to Term SOFR Advances, shall be suspended (to the extent of the affected Term SOFR Advances or affected Interest Accrual Periods) until the Administrative Agent (at the written instruction of the Required Lenders) revokes such notice. Upon receipt of such notice, (i) the Borrowers may revoke any pending request for a borrowing of, conversion to or continuation of Term SOFR Advances (to the extent of the affected Term SOFR Advances or affected Interest Accrual Periods) or, failing that, the Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Advances in the amount specified therein and (ii) any outstanding affected Term SOFR Advances will be deemed to have been converted into Base Rate Advances at the end of

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the applicable Interest Accrual Period. Upon any such conversion, the Borrowers shall also pay accrued interest on the amount so converted, together with any additional amounts required pursuant to <u>Section 2.12.</u> Subject to <u>Section 2.18</u>, if the Required Lenders reasonably determine (which determination shall be conclusive and binding absent manifest error) that "Term SOFR" cannot be determined pursuant to the definition thereof on any given day, the interest rate on Base Rate Advances shall be reasonably determined by the Required Lenders without reference to clause (c) of the definition of "Base Rate" until the Required Lenders revoke such determination.

**Section 2.14<u>Illegality</u>**. If any Lender reasonably determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender (or in the case of a Conduit Lender, its Program Support Provider, but only to the extent that the related Committed Lender would be entitled to any payment hereunder) or its applicable lending office to make, maintain or fund Advances whose interest is determined by reference to SOFR, the Term SOFR Reference Rate or Term SOFR, or to determine or charge interest based upon SOFR, the Term SOFR Reference Rate or Term SOFR, then, upon notice thereof by such Lender, who shall promptly forward such notice to the Borrowers (an "<u>Illegality Notice</u>"), (a) any obligation of the Lenders to make Term SOFR Advances, and any right of the Borrowers to continue Term SOFR Advances or to convert Base Rate Advances to Term SOFR Advances, shall be suspended, and (b) the interest rate on which Base Rate Advances shall, if necessary to avoid such illegality, be determined by the Required Lenders without reference to clause (c) of the definition of "Base Rate", in each case until each affected Lender notifies the Required Lenders that the circumstances giving rise to such determination no longer exist. Upon receipt of an Illegality Notice, the Borrowers shall, if necessary to avoid such illegality, upon demand from any Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Term SOFR Advances to Base Rate Advances (the interest rate on which Base Rate Advances shall, if necessary to avoid such illegality, be determined by the Required Lenders without reference to clause (c) of the definition of "Base Rate"), on the last day of the Interest Accrual Period therefor, if all affected Lenders may lawfully continue to maintain such Term SOFR Advances to such day, or immediately, if any Lender may not lawfully continue to maintain such Term SOFR Advances to such day. Upon any such prepayment or conversion, the Borrowers shall also pay accrued interest on the amount so prepaid or converted, together with any additional amounts required pursuant to <u>Section 2.12</u>.

**Section 2.15<u>Rescission or Return of Payment</u>**. Each 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 Borrowers or any of its Affiliates), the obligation of such 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 shall continue to be effective or be reinstated, as the case maybe, as to such obligations, all as though such payment had not been made.

**Section 2.16<u>Post-Default Interest</u>**. The Borrowers shall pay **<u>additional</u>** interest on all Obligations that are not paid when due for the period from the due date thereof until the date the same is paid in full in cash at the Post-Default Rate plus the Applicable Margin. Interest **<u>Additional interest</u>** payable at the Post-Default Rate shall be payable on each Payment Date in accordance with the Priority of Payments.

**Section 2.17<u>Payments Generally</u>**. (a) All amounts owing and payable to any Secured Party, including any Affected Person or any Indemnified Party, in respect of the Advances and

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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 Borrowers from the Borrower Payment Account, in immediately available funds, in accordance with the Priority of Payments, and all without counterclaim, setoff, deduction, defense, abatement, suspension or deferment. The Manager, the Agents and each Lender shall provide wire instructions for themselves and any applicable affiliated recipients or related counsel to the Borrowers, each Approved Account Bank and the Agents. Any payments received after 3:00 p.m. on a Business Day will be deemed to have been paid on the next following Business Day. To the extent any payment is made to an Approved Account Bank for the account of the Lenders under the Priority of Payments, such Approved Account Bank promptly will make such payment amount available to each Lender on a *pro rata* basis based on the amount due and owed to each Lender at such time by wire transfer to such Lender's 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;(a)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 (or in the case of interest computed by reference to the Base Rate at times when the Base Rate is based on the Prime Rate, such interest shall be computed on the basis of a year of 365 days (or 366 days in a leap year)), and in each case shall be payable for the actual number of days elapsed (including the first day but excluding the last day). All interest hereunder on any Advance shall be computed on a daily basis based upon the outstanding principal amount of such Advance as of the applicable date of determination. The applicable Base Rate or Term SOFR shall be determined by the Lead Borrower (acting reasonably and in good faith), and such determination shall be conclusive absent manifest error.

&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 amounts due and payable to a Committed Lender that has a related Conduit Lender or to such Conduit Lender shall be made to such Lenders' Managing Agent for the account of such Lenders.

**Section 2.18<u>Benchmark Replacement Setting</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;(e)<u>Benchmark Replacement</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)Notwithstanding anything to the contrary herein or in any other Facility Document, upon the occurrence of a Benchmark Transition Event, the Required Lenders (in consultation with the Lead Borrower) may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrowers so long as a Responsible Officer of the Administrative Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a Benchmark Replacement pursuant to this <u>Section 2.18(a)(i)</u> will occur prior to the applicable Benchmark Transition Start 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)No swap agreement shall be deemed to be a "Facility Document" for purposes of this <u>Section 2.18</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)<u>Benchmark Replacement Conforming Changes</u>. In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent (at the written direction of the Required Lenders) 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.

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&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)<u>Notices; Standards for Decisions and Determinations</u>. The Lead Borrower will promptly notify the other Borrowers 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 Lead Borrower will notify the other Borrowers and the Lenders of (x) the removal or reinstatement of any tenor of a Benchmark pursuant to <u>Section 2.18(d)</u> and (y) the commencement of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Lead Borrower or the Required Lenders pursuant to this <u>Section 2.18</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 2.18</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;(h)<u>Unavailability of Tenor of Benchmark</u>. 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 Required Lenders (in consultation with the Lead Borrower) 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 Required Lenders (in consultation with the Lead Borrower) 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 clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is not or will not be representative for a Benchmark (including a Benchmark Replacement), then the Required Lenders (in consultation with the Lead Borrower) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Benchmark Unavailability Period</u>. Upon the Borrowers' receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrowers may revoke any pending request for a SOFR Borrowing of, conversion to or continuation of Term SOFR Advances to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrowers will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Advances and any outstanding affected Term SOFR Advances will be deemed to have been converted to Base Rate Advances at the end of the applicable Interest Accrual Period. During a Benchmark Unavailability Period or at any time that a tenor for the then-current Benchmark is not an Available Tenor, the component of Base Rate based upon the then-current Benchmark or such tenor for such Benchmark, as applicable, will not be used in any determination of Base Rate.

**Section 2.19<u>Increase in Commitment</u>.** &nbsp;&nbsp;&nbsp;&nbsp;

Provided that no Event of Default, Unmatured Event of Default or Manager Termination Event shall exist and be continuing, upon written notice to the Administrative Agent, the Lead Borrower may request prior to end of the Availability Period, that each of the Lenders ratably increase their respective Commitment Amount, in an aggregate amount such that after giving effect to such request the total Commitment Amount shall not exceed $700,000,000. Such notice

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shall specify (i) the aggregate amount of such increase and (ii) the time period within which the Lenders are requested to respond to the Lead Borrower's request (which shall in no event be less than ten (10) Business Days from the date of delivery of such notice to the Administrative Agent). Each Lender shall notify the Administrative Agent and the Lead Borrower within the applicable time period (which shall not be less than ten (10) Business Days) whether or not such Lender agrees, in its sole discretion, to make such ratable increase to such Lender's Commitment Amount or otherwise agrees to any lesser increase in its Commitment Amount. Any Lender not responding within such time period shall be deemed to have declined to consent to an increase in such Lender's Commitment Amount. If the Commitment Amount of any Lender is increased in accordance with this <u>Section 2.19</u>, the Lenders and the Lead Borrower shall determine the effective date of such Commitment Amount increase and shall enter into such documents as agreed to by such parties to document such increase.

The Administrative Agent (at the written direction of the Lead Borrower) and the Borrowers are expressly permitted, with the consent of the Required Lenders (not to be unreasonably withheld), to amend this Agreement to the extent necessary or appropriate in the reasonable opinion of the Administrative Agent in consultation with the Lenders to give effect to any increase pursuant to this <u>Section 2.19</u>; <u>provided</u> that no such amendment shall materially and adversely affect the rights or interests of any Lenders, as certified to the Administrative Agent by the Lead Borrower and absent express written objection by the Required Lenders.

**Article III<br>CONDITIONS PRECEDENT**

**Section 3.01<u>Conditions Precedent to Effectiveness of this Agreement</u>**. This Closing Date and the effectiveness of this Agreement shall be subject to the conditions precedent that the Administrative Agent shall have received the following, each in form and substance satisfactory to the Administrative Agent and the Required 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;(a)this Agreement, the Constituent Documents of the Initial Borrower and the Initial SPV Guarantor, the Lender Fee Letter and the BNY Fee Schedule shall be 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)a certificate of a Responsible Officer of the Initial Borrower and the Initial SPV Guarantor attaching and certifying (i) its Constituent Documents, (ii) its resolutions or other action of its member approving the Facility Documents to which it is a party and the transactions contemplated thereby, (iii) that its representations and warranties set forth in the Facility Documents to which it is a party are 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) (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects), (iv) the incumbency and specimen signature of each of its Responsible Officers authorized to execute the Facility Documents to which it is a party and (v) that no Unmatured Event of Default or Event of Default has occurred and is continuing;

&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)a certificate of a Responsible Officer of the Manager attaching and certifying (i) its Constituent Documents, (ii) its resolutions or other action of its governing body approving the Facility Documents to which it is a party and the transactions contemplated

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thereby, (iii) that its representations and warranties set forth in the Facility Documents to which it is a party are 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) (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct in all respects), (iv) the incumbency and specimen signature of each of its Responsible Officers authorized to execute the Facility Documents to which it is a party and (v) that no Manager Termination Event has occurred and is continuing;

&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)legal opinions (addressed to the Administrative Agent, the Lenders and their permitted assignees) of (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to the Initial Borrower and the Initial SPV Guarantor and (ii) Debevoise & Plimpton LLP, counsel to the Manager, covering such matters with respect to the Initial Borrower, the Initial SPV Guarantor or the Manager, as applicable, as any Agent or its counsel shall reasonably request, including but not limited to, as applicable, corporate organization, capacity, power and authority, due execution and delivery, recognition of judgments, enforceability, no conflicts, no litigation, margin stock, Investment Company Act and substantive non-consolidation and UCC matters (including, without limitation, creation and perfection of security interests), each in form and substance satisfactory to the Agent or Agents requesting such opinion;

&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)good standing certificates with respect to each of the jurisdictions where Initial Borrower and the Initial SPV Guarantor are organized;

&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)proper financing statements, to be duly filed under the UCC, in all jurisdictions that the Required Lenders deem necessary or desirable in order to perfect the Liens on the Collateral contemplated by 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;(g)an Independent Director shall have been appointed for the Initial Borrower and the related SPV Guarantor;

&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 the extent requested at least ten (10) Business Days prior to the Closing Date, the Lenders shall have received at least five (5) Business Days prior to the Closing Date all documentation and other information required by bank regulatory authorities under applicable "know-your-customer" and anti-money laundering rules and regulations, including the PATRIOT Act; 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;(i)an officer's certificate from the Initial Borrower and the Initial SPV Guarantor stating that all conditions precedent under this <u>Section 3.01</u> have been satisfied or waived by an authorized party.

**Section 3.02<u>Conditions Precedent to Initial Borrowing</u>**. The initial Advance to be made hereunder, and the election of each Conduit Lender and the obligation of each other Lender, to fund, on the initial Borrowing Date shall be subject to the fulfillment of the following conditions:

&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 Facility Document contemplated to be in effect on or prior to the initial Borrowing Date each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)evidence satisfactory to the Required Lenders that the Borrower Payment Account and the Borrower Interest Reserve Account have been established;

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&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)a Specified Lender Side Letter in form and substance satisfactory to the beneficiary of such letter, duly executed by a Responsible Officer of each Loan Party;

&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 requested at least ten (10) Business Days prior to the first Acquisition Date, the Collateral Agent shall have received at least five (5) Business Days prior to such Acquisition Date all documentation and other information required by bank regulatory authorities under applicable "know-your-customer" and anti-money laundering rules and regulations, including the PATRIOT Act; 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;(e)the reporting requirements under <u>Schedule 3</u> have been reasonably agreed upon by the Required Lenders and the Lead Borrower; **<u>and</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)**<u>legal opinions (addressed to the Administrative Agent, the Lenders and their permitted assignees) of (i) Paul, Weiss, Rifkind, Wharton & Garrison LLP, counsel to the Initial Borrower and the Initial SPV Guarantor or (ii) Debevoise & Plimpton LLP, counsel to the Manager, covering such security interest matters as any Lender or its counsel shall reasonably request, each in form and substance satisfactory to the Lender(s) requesting such opinion.</u>**

**Section 3.03<u>Conditions Precedent to Each Borrowing</u>**. Each Advance to be made hereunder, if any, (including the initial Advance), and the election of each Conduit Lender and the obligation of each other Lender, to fund, on each Borrowing Date shall be subject to the fulfillment of the following conditions:

&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 Required Lenders (with a copy to the Administrative Agent) shall have received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Notice of Borrowing with respect to such Advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)and if such date is an Asset Acquisition Date, the related Asset Acquisition Package for the assets to be acquired from the proceeds of such Advance (including, without limitation, duly executed copies of each Intellectual Property Security Agreement then contemplated to be entered into as of the related Asset Acquisition Date), and the related Asset Acquisition Procedures shall have been complied with (including, without limitation, the filing, registration or recording of all additional financing statements and the registering or recording of any Intellectual Property Security Agreements necessary to ensure the Collateral Agent's first priority perfected security interest (on behalf of the Secured Parties) in the assets being acquired);

&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 Borrowing Date is an Asset Acquisition Date, (i) the Acquisition/Disposition LTV Ratio shall be less than the Maximum LTV Ratio then in effect after giving effect to such acquisition and such Advance, (ii) the DSCR (after giving *pro forma* effect to the proposed Borrowing) shall be equal to or greater than the Minimum DSCR and (iii) the LTV Ratio shall be less than the Maximum LTV Ratio then in effect after giving effect to such Advance, in each case, as demonstrated in the calculations attached to the applicable Notice of 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;(c)if such Borrowing Date is an Asset Acquisition Date and an additional Loan Party is being joined on such date pursuant to <u>Section 2.01(a)</u> then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)good standing certificates with respect to each of the jurisdictions where each such additional Loan Party is organized;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)legal opinions (addressed to the Administrative Agent, the Lenders and their permitted assignees) of counsel to the Loan Parties covering such matters with respect to each such additional Loan Party, as any Agent or its counsel shall reasonably request, each in form and substance substantially the same as the opinions delivered on the Closing Date or otherwise reasonably satisfactory to the Person requesting such opinion; 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)each such additional Loan Party shall have executed and delivered a Joinder Agreement in the form of <u>Exhibit A</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)if such Borrowing Date is not an Asset Acquisition Date, (i) the LTV Ratio shall be less than the Maximum LTV Ratio then in effect after giving effect to such Advance and (ii) the DSCR (after giving *pro forma* effect to the proposed Borrowing) shall equal or exceed the DSCR in effect immediately prior to the Borrowing (or, if the Borrowers have completed an acquisition of assets during the then-current Collection Period, the DSCR on a *pro forma* basis after giving effect to such acquisition of assets, in effect as of the date of the Notice of Borrowing), in each case, as demonstrated in the calculations attached to the applicable Notice of Borrowing; <u>provided</u> that, (x) the Aggregate Collateral Value will be calculated on a pro forma basis to exclude the Appraisal Values and Non-Appraisal Values of each Specified Music Product and (y) the Administrative Agent and each Lender will be provided evidence reasonably satisfactory to them of the Allocable Debt for each Music Product as of such date after giving effect to such Advance;

&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)immediately after the making of such Advance on the applicable Borrowing Date (and the concurrent consummation of any acquisitions of assets financed by such Advance), the aggregate outstanding principal balance of the Advances (x) shall be less than or equal to the Aggregate Collateral Value at such time, as demonstrated in the calculations attached to the applicable Notice of Borrowing and (y) shall not exceed the Commitment Amount at any time;

&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)each of the representations and warranties of each Loan Party contained in this Agreement and the other Facility Documents shall be true and correct in all material respects (except for representations and warranties already qualified by materiality or Material Adverse Effect, which shall be true and correct) 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);

&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)evidence satisfactory to the Required Lenders that any necessary Borrower Liability Reserve Accounts has been established;

&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)if such Borrowing Date is an Asset Acquisition Date, Lien searches pursuant to the UCC and copyright searches at the United States Copyrights Office demonstrating that the related assets to be acquired on such date are free and clear of 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;(i)(i) no Manager Termination Event, Unmatured Event of Default or Event of Default 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 (ii) the amount on deposit in the Borrower Interest Reserve Account shall be at least equal to the Interest 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;(j)if such Borrowing Date is an Asset Acquisition Date, all terms and conditions of each applicable Asset Transfer Agreement required to be satisfied in connection with the transfer of any asset being pledged hereunder on such Borrowing Date, including the

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perfection of the applicable Borrower's and the Secured Parties' interests therein, shall have been satisfied 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;(k)if such Borrowing Date is an Asset Acquisition Date, the Borrowers and the Manager shall have taken all steps necessary under all Applicable Law in order to cause to exist in favor of the Collateral Agent, for the benefit of the Secured Parties, a valid, subsisting and enforceable first priority perfected security interest in each applicable Borrower's right, title and interest in any additional assets being acquired by such Borrower in connection with such Borrowing 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;(l)receipt of all fees and expenses to be received by each Agent and each Lender (including fees and expenses of each Agent's counsel) on or prior to such Borrowing Date pursuant to the Lender Fee Letter and the BNY Fee Schedule or otherwise have been received;

&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)evidence satisfactory that after giving *pro forma* effect to such Advance, the outstanding principal amount of all Advances does not exceed 57.5% of the Aggregate Collateral Value;

&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)if such Borrowing Date is an Asset Acquisition Date, evidence satisfactory to each Lender that the Minimum Equity Payment for the Music Products being acquired on such Asset Acquisition Date has been funded by the Equity Holders of the applicable Borrower; 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;(o)an officer's certificate from the Lead Borrower stating that all conditions precedent under this <u>Section 3.03</u> have been satisfied or waived.

**Article IV<br>REPRESENTATIONS AND WARRANTIES**

**Section 4.01<u>Representations and Warranties of the Loan Parties</u>**. Each Loan Party represents and warrants to each of the Secured Parties on and as of the Closing Date and each Borrowing Date, 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;(a)<u>Due Organization</u>. Such Loan Party is duly organized and validly existing under the laws of its jurisdiction of incorporation, organization or formation, as applicable, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Due Qualification and Good Standing</u>. Such Loan Party is in good standing under the laws of its jurisdiction of incorporation, organization or formation, as applicable. Such Loan Party 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 do so could not reasonably be expected to result in a Material Adverse Effect on any Loan Party.

&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)<u>Due Authorization; Execution and Delivery; Legal, Valid and Binding; Enforceability</u>. The execution and delivery by such Loan Party 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 and have been duly executed and delivered by it or on its behalf

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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 (to the extent not related to inequitable conduct of such Loan Party), 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;(d)<u>Non-Contravention</u>. None of the execution and delivery by such Loan Party 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 (with or without notice of lapse of time or both) a default under its Constituent Documents, (ii) conflict with or contravene (A) any Applicable Law in any respect, (B) any indenture, agreement or other contractual restriction binding on or affecting it or any of its assets, including any Collateral Documents, 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 conflict with, 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 each case referred to in clauses <u>(ii)</u> and <u>(iii)</u>, to the extent such conflict, breach, violation, default or acceleration would reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole). Without limiting any restrictions or other covenants hereunder, such Loan Party is not, in default under any such indenture, agreement or other contractual restriction binding on or affecting it or any of its assets, including any Collateral Document, with respect to which such default, either individually or in the aggregate with other defaults, would reasonably be expected to have a Material Adverse Effect on the Loan Parties (taken as a whole). Such Loan Party is not subject to any proceeding, action, litigation or investigation pending, or to the knowledge of such Person, overtly threatened in writing against or affecting it or its assets, before any Governmental Authority seeking to prevent the consummation or performance of any of the transactions contemplated by this Agreement and the other Facility Documents or that could result in a Material Adverse Effect on the Loan Parties (taken as a whole).

&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)<u>Governmental Authorizations; Private Authorizations; Governmental Filings</u>. Such Loan Party has obtained or applied for, maintained and kept in full force and effect all Governmental Authorizations and Private Authorizations which are reasonably necessary for it to properly carry out its business and made all Governmental Filings necessary for the execution and delivery by it of the Facility Documents to which it is a party, the Borrowings by such Loan Party under this Agreement, the pledge of the Collateral by such Loan Party under this Agreement and the performance by such Loan Party of its obligations under this Agreement and the other Facility Documents to which it is a party, in each case, to the extent a failure to do so would reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole), and no Governmental Authorization, Private Authorization or Governmental Filing which has not been obtained, applied for 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 such Loan Party under this Agreement, the pledge of the Collateral by such Loan Party under this Agreement or the performance of its obligations under this Agreement and the other Facility Documents to which it is a party, in each case, to the extent a failure to do so would reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole).

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&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)<u>Compliance with Agreements, Laws, Etc</u>. Such Loan Party has duly observed and complied (i) in all respects with all Applicable Laws relating to the conduct of its business and its assets, including all activities contemplated by the Facility Documents, unless a failure to do so would not reasonably be expected to result in a Material Adverse Effect on the Loan Parties (taken as a whole) (ii) in all material respects with its Constituent Document, (iii) with any judgment, decree, writ, injunction, order, award or other action of any Governmental Authority having or asserting jurisdiction over it or any of its properties, unless a failure to do so could not result in a Material Adverse Effect on the Loan Parties (taken as a whole) and (iv) with the terms and provisions of this Agreement and each other Facility Document to which it is a party. Such Loan Party has preserved and kept in full force and effect its legal existence, rights, privileges, qualifications and franchises. Without limiting the foregoing, (x) to the extent applicable, such Loan Party is in compliance in all material respects with the regulations and rules promulgated by the U.S. Department of Treasury or administered by the U.S. Office of Foreign Asset Controls ("<u>OFAC</u>"), including U.S. Executive Order No. 13224, and other related statutes, laws and regulations (collectively, the "<u>Subject Laws</u>"), (y) such Loan Party has adopted internal controls and procedures designed to ensure its continued compliance with the applicable provisions of the Subject Laws and to the extent applicable, will adopt procedures consistent with the PATRIOT Act and implementing regulations, and (z) to the knowledge of such Loan Party (based on the implementation of its internal procedures and controls), no direct investor in such Loan Party is a Person whose name appears on the "List of Specially Designated Nationals" and "Blocked Persons" maintained by the OFAC.

&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)<u>Location and Legal Name</u>. Such Loan Party's (i) chief executive office, (ii) principal place of business, (iii) registered office, (iv) jurisdiction of incorporation, organization or formation, as applicable, (v) the location in which it maintains its books and records, (vi) tax identification, other applicable entity identification number or other relevant information necessary for UCC filings in applicable jurisdictions, (vii) to the extent applicable, each alternative name and former name used by such Loan Party and (viii) to the extent any of the foregoing information has changed in the past five years, all prior such information for such five-year period, is in each case listed on <u>Schedule 2</u> hereto, as updated from time to time in accordance with <u>Section 5.02(h)</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;(h)<u>Investment Company Act; Volcker Rule</u>. Such Loan Party is not required to register as an "investment company" within the meaning of the Investment Company Act. Such Loan Party is not a "covered fund" under Section 619 of the Dodd Frank Wall Street Reform and Consumer Protection Act. In determining that it is not a covered fund, such Loan Party has determined that it is excluded from the definition of "investment company" in Section 3(a) of the Investment Company Act although other exemptions may be 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;(i)<u>Information and Reports</u>. Each Notice of Borrowing, each Release Request, each Periodic Report, each Asset Acquisition Package (other than any Asset Diligence Report) and all other written information, reports, certificates and statements (other than projections and forward-looking statements) furnished by or on behalf of such Loan Party or the 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, when taken together with all related written information furnished by or on behalf of such Loan Party or the Manager, true, complete and correct in all material respects as of the date such information is provided, stated or certified and does not omit any material fact necessary in order to make the statements contained therein not misleading. Without limiting the foregoing, Borrower has furnished a true, complete and correct copy of the Asset Diligence Report prepared for the Borrowers, each Asset Transfer Agreement and each Legacy Purchase Agreement, in each case, as of the date provided pursuant to <u>Section 2.02(a)</u> or <u>(b)</u>, as applicable, and to the extent required to be provided hereunder, each Administration Agreement, each Music Agreement and each Revenue-Generating Agreement (as applicable) in connection with each related asset acquisition. With

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respect to each acquisition of assets by any Loan Party financed with (or to be financed with) the proceeds of an Advance, each related Appraisal delivered hereunder satisfies the Appraisal Requirements, and each related Asset Acquisition Package delivered hereunder has been delivered in compliance with the Asset Acquisition Procedures.

&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)<u>ERISA</u>. Neither such Loan Party nor any member of its ERISA Group has, or during the past six years has had, any material liability or material obligation with respect to any Plan or Multiemployer Plan (including any actual liability on account of a member of the ERISA Group).

&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)<u>Taxes</u>. Such Loan Party has filed all federal income tax returns and all material other tax returns which are required to be filed by it, if any, and has paid all Taxes, shown to be due and payable (taking into account extensions) on such returns, assessments, fees and other governmental charges levied or imposed upon it or its properties, income or assets otherwise due and payable, except (i) for any Taxes which are being contested in good faith by appropriate proceedings and with respect thereto adequate reserves are being maintained in accordance with GAAP or (ii) to the extent that the failure to do so could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Tax Status</u>. For U.S. federal income tax purposes (i) each Loan Party is classified as a "disregarded entity" whose sole regarded owner for U.S. federal income tax purposes is a U.S. Person, (ii) no Loan Party nor any record or beneficial owner of a Loan Party has made an election under Treasury regulations section 301.7701-3 for any Loan Party to be classified as an association taxable as a corporation and no Loan Party is otherwise treated as an association taxable as a corporation, including a taxable mortgage pool treated as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes and (iii) no Loan Party is subject to any requirement to withhold tax with respect to payments or income allocable to its direct or indirect beneficial owners (including under Section 1446 of the 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;(m)<u>Collections and Accounts</u>. All Collections in respect of such Loan Party's assets shall be deposited either directly into its Collection Account or directly to the Borrower Payment Account, and all necessary Asset Payment Instructions are in full force and effect to ensure the foregoing. No Person has any interest in any Collection Account other than those Persons permitted to have an interest therein pursuant to the applicable Account Collateral Agreement. No Person other than the Loan Parties, the Secured Parties and the related Approved Account Bank has any interest in any Borrower 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;(n)<u>Plan Assets</u>. The assets of such Loan Party are not, and shall not be, treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA and the Collateral is not deemed to be "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. Such Loan Party has not taken, or omitted to take, and shall not take or omit to take, any action which would reasonably be expected to result in any of the Collateral being treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.

&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)<u>Solvency</u>. After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, such Loan Party is Solvent.

&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)<u>Prior Business Activity and Indebtedness</u>. Such Loan Party has no business activity except as contemplated in this Agreement and the other Facility Documents, and as of the date hereof is not party to any other debt, financing or other transaction or agreement other than the Facility Documents. Such Loan Party has not incurred, created or assumed any Indebtedness except for Indebtedness that has been paid in full in cash on or prior

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to the date hereof (excluding contingent obligations relating thereto that have not accrued) and any Indebtedness arising under or expressly permitted by this Agreement or the other 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;(q)<u>Subsidiaries; Investments</u>. The Borrowers have no subsidiaries and do not own or hold directly or indirectly, any capital stock or equity security of, or any equity interest in, any Person, other than any special purpose wholly-owned subsidiary of a Borrower organized in the State of Delaware with Constituent Documents substantially similar to those of the Initial 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;(r)<u>Ordinary Course of Business</u>. Each payment of interest and principal on the Advances will have been (i) in payment of a debt incurred in the ordinary course of business or financial affairs on the part of such Loan Party and (ii) made in the ordinary course of business or financial affairs of such Loan Party.

&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)<u>Asset Agreements</u>. With respect to each Asset Agreement as of the related Asset Acquisition 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)each Borrower has performed all of the material terms, covenants and conditions on its part, which are contained in the Asset Agreements or otherwise pertain to any one or more of the Music Products except for the failure of any such performance that, either individually or in the aggregate, could not reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)each of the Asset Agreements is in full force and effect, except any such Asset Agreements the loss of which, either individually or in the aggregate, could not reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)to the knowledge of any Borrower, (i) no default by any party thereto exists and (ii) no party thereto is delinquent in payment of any other amounts required to be paid thereunder, in each case, that would reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)such Asset Agreement complies with, and will not violate, any Applicable Law except as would not reasonably be expected to result in 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)such Asset Agreement permits each Borrower party thereto to grant a security interest of its interests thereunder to the Collateral Agent without any consent or approval from any other Person pursuant to this Agreement and the Collateral 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)as of such Asset Acquisition Date, the Collateral includes each Borrower's rights to receive payments under the Asset Agreements.

&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)<u>Intellectual Property</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)(1) <u>Schedule 4(a)</u> of the Intellectual Property Schedule sets forth a true and complete list of all issued Patents and pending Patent applications owned by such Loan Party; (2) <u>Schedule 4(b)</u> of the Intellectual Property Schedule sets forth a true and complete list of all registered Trademarks and all applications for registrations of Trademarks owned by such Loan Party; and (3) <u>Schedule 4(c)</u> of the Intellectual Property Schedule sets forth a true and complete list of all registered Copyrights and all applications for registration of Copyrights owned by such Loan Party, together with a

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correct and complete description, with respect to each registered Copyright that is a Musical Composition or Master Recording, of (A) the Loan Parties' undivided Copyright ownership interest in such Musical Composition or Master Recording, as applicable, and (B) the applicable registration number(s) and registration date(s) from the United States Copyright Office and from any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof; provided that, in each case of clauses (1)-(3), with respect to registered Intellectual Property and applications therefor in countries other than the United States, such Intellectual Property is listed to the extent that the Loan Parties have actual knowledge 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Except as disclosed to the Required Lenders (with a copy to the Administrative Agent) in writing prior to the applicable Asset Acquisition Date, all Copyrights that are Musical Compositions and/or Master Recordings have been duly registered in the United States Copyright Office, or will be submitted for registration, prior to the applicable Asset Acquisition Date and each Person transferring any such Copyright to a Loan Party has (prior to the applicable Asset Acquisition Date) recorded, and each applicable Loan Party shall (on the applicable Asset Acquisition Date) submitted to record, its interest therein in the United States Copyright Office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 such Loan Party's knowledge, all Intellectual Property owned by such Loan Party is valid, subsisting, unexpired and enforceable and has not been abandoned. No holding, decision or judgment has been rendered by any Governmental Authority which would limit, cancel or question the validity, enforceability or ownership of any Registered Intellectual Property owned by such Loan Party other than as disclosed to the Required Lenders in writing (with a copy to the Administrative Agent). No action or proceeding is pending seeking to limit, cancel or question the validity, enforceability or ownership of any Registered Intellectual Property owned by such Loan Party other than as disclosed to the Required Lenders in writing (with a copy to the Administrative 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Each Loan Party owns, is licensed to use or otherwise has the right to use, all Intellectual Property that is necessary to the conduct of such Loan Party's business as currently conducted except for such Intellectual Property the failure of which to own or license or otherwise have the right to use would not reasonably be expected to have, either individually or in the aggregate, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)No Musical Composition or Master Recording violates or infringes any common law or statutory rights (including Copyrights) or any other rights or works of any third party or Person, except where such violation or infringement could not reasonably be expected to have a Material Adverse Effect. To the knowledge of each Loan Party, (A) no product or service of any Loan Party infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person, (B) there is no material violation by any Person of any right of any Loan Party with respect to any Intellectual Property owned or used by any Loan Party, (C) each of the Loan Parties owns or possesses all consents, licenses, certificates, authorizations, permits, franchises, authorizations, patents, copyrights, proprietary software, service marks, trademarks and trade names, or rights thereto, necessary to conduct such Loan Party's business , that individually or in the aggregate are material, without conflict with the rights of others, and (D) none of such Loan Party's Intellectual Property infringes in any material respect any license, permit, franchise, authorization, patent, copyright, proprietary software, service mark, trademark, trade name or other right owned by any other Person.

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&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)<u>Representations Relating to the Collateral</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 Loan Parties own and have legal and beneficial title to all 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in favor of the Collateral Agent, on behalf of the Secured Parties, in the Collateral, which is enforceable in accordance with its terms under the Applicable Law, is prior to all other Liens and is enforceable as such against creditors of and purchasers from any Loan Party, subject to Permitted Liens. All filings (including UCC filings and Intellectual Property Security Agreements) as are necessary in any jurisdiction to perfect the interest of the Collateral Agent on behalf of the Secured Parties, in the Collateral have been or, concurrently with the effectiveness of this Agreement, shall be made and are or will be effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)This Agreement constitutes a security agreement within the meaning of Section 9-102(a)(74) of the UCC as in effect from time to time in the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Other than Permitted Liens, such Loan Party has not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Collateral. Such Loan Party has not authorized the filing of and is not aware of any financing statements against such Loan Party that include a description of collateral covering the Collateral other than any financing statement relating to the security interest granted to the Collateral Agent hereunder or that has been terminated; and such Loan Party is not aware of any judgment liens, PBGC liens or tax lien filings against such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Such Loan Party has taken, or prior to the initial Advance hereunder shall take, all steps necessary to enable the Collateral Agent to obtain "control" (within the meaning of the UCC) with respect to each Borrower 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;(vi)All actions necessary in order to create a valid, continuing and perfected security interest (as defined in Section 1-201(b)(35) of the UCC) in the Collateral in favor of the Collateral Agent, for the benefit of the Secured Parties have been taken, including without limitation the filing of all applicable financing statements, the submission for recording of all applicable Copyright Security Agreements, the entry into each applicable Account Control Agreement and the delivery of all physical Collateral to the Collateral Agent; such security interest is prior to all other Liens (other than Permitted Liens), claims and encumbrances and is enforceable as such against creditors of and purchasers from such Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Such Loan Party has received all consents and approvals required by the terms of the Collateral Documents in respect of the acquisition of its assets and the pledge of its assets hereunder to the Collateral Agent, for the benefit of the Secured Parties, and no further notice or consent to any Person is required for the enforcement or exercise of the rights and remedies of the Secured Parties following an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Appraisal delivered hereunder in respect of such Loan Party's assets complies with the Appraisal Requirements, and such Loan Party has no reason to believe that the Appraisal Value of such Loan Party's assets, as reflected in the most recent Appraisal delivered hereunder, does not reflect the reasonable fair value of such assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)There are no liabilities associated with such Loan Party's assets for which any Loan Party is responsible other than Permitted Liabilities.

&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)<u>Representations Relating to the Collateral in Connection with a Borrowing</u>. Such Loan Party acknowledges and agrees that, upon each delivery of a Notice of Borrowing to the Administrative Agent, such Loan Party will be deemed to have represented, warranted and certified for all purposes hereunder that in the case of each item of Collateral pledged to the Collateral Agent, on the date thereof and on the relevant Borrowing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)such Loan Party is the owner of such Collateral free and clear of any Liens, claims or encumbrances of any nature whatsoever except for (A) those which are being released on the related Borrowing 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)such Loan Party has acquired its ownership in such Collateral in good faith without notice of any adverse claim, except as described in clause (i) 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;(iii)such Loan Party 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 interests granted or permitted 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)such Loan Party has full right to grant a security interest in and assign and pledge such Collateral to the Collateral Agent for the benefit of the Secured 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)upon the proper filing and recording of the Collateral Documents, Collateral Agent shall have a first priority perfected security interest in the Collateral, except as otherwise permitted by 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;(w)<u>USA PATRIOT Act</u>. (a) None of the Loan Parties or any of their respective Affiliates, or any of their respective directors, officers or employees; and (b) to the knowledge of such Loan Party, no agent or Person (other than the directors and officers covered in clause (a) above) acting on behalf of such Loan Party or any Affiliate that will act in any capacity in connection with or benefit from this Agreement, is (1) a Sanctioned Person; (2) a Person that resides or has a place of business in a Sanctioned Country or which is designated as a "non-cooperative jurisdiction" by the Financial Action Task Force on Money Laundering, or whose subscription funds are transferred from or through such a jurisdiction; (3) a "Foreign Shell Bank" within the meaning of the PATRIOT Act, <u>i.e.</u>, a foreign bank that does not have a physical presence in any country and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (4) a Person that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury under Section 311 or 312 of the PATRIOT Act as warranting special measures due to money laundering concerns. No Borrowing, use of proceeds or other transaction by a Loan Party contemplated by this Agreement will violate Sanctions applicable to any party to this Agreement.

**Article V<br>COVENANTS**

**Section 5.01<u>Affirmative Covenants of the Loan Parties</u>**. Each Loan Party, and the Manager on behalf of each Loan Party, covenants and agrees that, until the date that all Obligations have been paid in full in cash (other than contingent indemnity obligations not yet due and owing):

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&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>Compliance with Agreements, Laws, Etc</u>. It shall (i) duly observe and comply in all respects with all Applicable Laws relative to the conduct of its business or to its assets, including all laws applicable to its assets and its activities and obligations as contemplated by the Facility Documents, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect on any Loan Party, (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 (including all licenses or qualifications applicable to its assets and its activities contemplated by the Facility Documents), except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect on any Loan Party, (iv) comply with the terms and conditions of each Facility Document and in all material respects with its Constituent Documents 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 to which it is a party and its Constituent Documents, except where the failure to do so could not reasonably be expected to result in a Material Adverse Effect on any Loan Party. Each Loan Party has instituted, and will continue to maintain and enforce, policies and procedures reasonably designed to promote compliance with the 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;(b)<u>Enforcement</u>. (i) It shall not take any action, and will use commercially reasonable efforts not to permit any action to be taken, that would release any Obligor from any of such Obligor's covenants or obligations under any Collateral Document, except in the case of (A) payment in full in cash of all Collections contemplated to be paid thereunder, (B) subject to the terms of this Agreement, (1) amendments to Asset Agreements that are reasonably deemed by the Manager to be necessary, immaterial, or beneficial, taken as a whole, to the Loan Parties, are otherwise in compliance with the terms hereof, and not detrimental to the Agents and the Lenders and (2) enforcement actions taken with respect to any defaults or breaches by any Obligor under any Collateral Document in accordance with the provisions hereof and the Management Agreement (including the Management Standard), (C) actions by the Manager in conformity with the Management Standard and this Agreement or the Management Agreement or as otherwise required hereby or thereby, as the case may be, or (D) as required pursuant to Applicable Law or, unless in violation of this Agreement, any other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Such Loan Party (and the Manager on behalf of each Loan Party) shall punctually perform or cause to be performed all of its obligations and agreements contained in this Agreement or any other Facility Document, and shall (i) enforce, to the extent reasonably requested by the Required Lenders, and (ii) otherwise use commercially reasonable efforts to enforce the obligations and agreements of each Obligor under each Collateral Document (including without limitation any obligations or agreements intended to restrict or prohibit actions to prohibit, impede, delay or hinder the exploitation or monetization of any Intellectual Property or other Collateral or reducing, diminishing, divesting, derogating or otherwise adversely affecting any Loan Party's rights or interests therein), in each case in a manner consistent with the Management Standard.

&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)<u>Further Assurances</u>. Such Loan Party shall take such reasonable action from time to time as shall be necessary to ensure that its Music Products, Music Product Rights, Intellectual Property and other assets constitute "Collateral" hereunder. Such Loan Party will, and promptly upon the reasonable request of the Administrative Agent, acting at the written direction of the Required Lenders, shall, at the Loan Parties' 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 (including without limitation all Intellectual Property) pledged by the Loan Parties for the benefit of the Secured Parties free and clear of any Liens (other than Permitted Liens), including all further actions which are necessary

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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, this Agreement and the other Facility Documents. Without limiting its obligation to maintain and protect the Collateral Agent's first priority security interest in the Collateral, such Loan Party hereby (i) authorizes the Administrative Agent (including for purposes of Section 9-509 of the UCC), at the written direction of the Required Lenders, to file or record financing statements (including financing statements describing the Collateral as "all assets" or the equivalent), continuation statements and other filing or recording documents or instruments with respect to the Collateral in such form and in such offices as the Required Lenders deem necessary or desirable to perfect the security interests of the Collateral Agent (for the benefit of the Secured Parties) under this Agreement under each method of perfection required herein with respect to the Collateral and (ii) authorizes the Administrative Agent, at the written direction of the Required Lenders, to file with the United States Patent and Trademark Office, the United States Copyright Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, any Intellectual Property Security Agreements or other documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interests granted therein by such Loan Party, without its signature, and naming such Loan Party as debtor and the Collateral Agent as secured party (for the benefit of the Secured Parties); <u>provided</u> that neither Agent assumes (nor shall be deemed to have assumed) any obligation whatsoever of any Loan Party to maintain and protect the Collateral Agent's security interest in the Collateral (for the benefit of the Secured Parties), and all costs of, or incidental to, any of the foregoing filings, recordings, registrations or other actions shall be paid or reimbursed by the Loan Parties. Such Loan Party will, in connection with the foregoing, deliver such proof of corporate action, incumbency of officers or other documents as are reasonably requested by the Administrative Agent to evidence appropriate authority of the officers signing or authorizing any such documents, instruments or filings.

&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)<u>Other Information</u>. It shall provide to the Administrative Agent and the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)beginning with the fiscal year ending September 2025, as soon as available and in any event within one hundred fifty (150) days after the end of each fiscal year, an audited consolidated balance sheet of the Loan Parties (or, as elected by the Lead Borrower, the Person consolidating the Loan Parties) as at the end of such fiscal year and the related consolidated statements of income and cash flows for such annual period, all reported on in conformity with GAAP, which financial statements shall be prepared and certified without any material qualification relating to going concern (except (i) to the extent such qualification results solely from (x) the impending maturity of any indebtedness or (y) any prospective or actual breach under (or potential liability on a future date or in a future period to satisfy) any financial covenant under, any indebtedness or (ii) an "emphasis of matter" paragraph);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 ninety (90) days following the end of the first three fiscal quarters of each fiscal year, commencing with the fiscal quarter ending December 2025, an unaudited consolidated balance sheet of the Loan Parties (or, as elected by the Lead Borrower, the Person consolidating the Loan Parties) as at the end of such fiscal quarter and the related consolidated statements of income and cash flows for such quarterly 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)all such financial statements shall be prepared in reasonable detail and in accordance with GAAP in all material respects applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the case may be, and disclosed therein);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)simultaneously with the delivery of each set of financial statements and financial information referred to in <u>clauses (i)</u> and <u>(ii)</u> above, a certificate of a Responsible Officer of each Loan Party certifying that no Manager Termination Event, Unmatured Event of Default or Event of Default then exists and, otherwise, setting forth the details thereof and the amount and the action which the Loan Parties, the Manager or other relevant Person is taking or proposes to take with respect thereto (which, in the case of an Unmatured Event of Default, shall be described if such action is known to the Borrowers at the time such certificate is delivered);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)as soon as possible and no later than five (5) Business Days after a Responsible Officer of a Loan Party obtains actual knowledge of the occurrence and continuance of any (x) Unmatured Event of Default or (y) Event of Default, a certificate of a Responsible Officer of each Loan Party setting forth the details thereof and the action which the Loan Parties, the Manager or other relevant Person is taking or proposes to take with respect thereto (which, in the case of an Unmatured Event of Default, shall be described if such action is known to the Loan Parties at the time such certificate is delivered);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)from time to time such additional information or documents regarding each Borrower's financial position or business and the Collateral (including reasonably detailed calculations of the LTV Ratio and the DSCR within the Periodic Report, as of any prior Measurement Date) as the Administrative Agent, at the written direction of the Required Lenders, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)promptly after the occurrence of any ERISA Event that would reasonably be expected to result in material liability to any Loan Party, notice of such ERISA Event and copies of any communications with all Governmental Authorities or any Multiemployer Plan with respect to such ERISA Event;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)(A) by no later than five (5) Business Days (or if earlier, the first Measurement Date) following knowledge thereof by any Loan Party, a written notice to each Agent if any Obligor became subject to an Insolvency Event, is deceased or fraud is discovered in connection with the origination or acquisition of the relevant asset, and (B) at any time upon the reasonable request by any Agent or a Lender, such Loan Party shall provide, or cause to be provided, to the Agents or the Lenders any information or document relating to 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)promptly following any request therefor by any Lender, such Loan Party shall provide, to the extent commercially reasonable, information and documentation reasonably requested by any Agent or any Lender for purposes of compliance with applicable "know your customer" requirements under the PATRIOT Act, the Beneficial Ownership Regulation (31 C.F.R. § 1010.230) or other applicable anti-money laundering laws, including but not limited to a beneficial ownership certification in form reasonably acceptable to the applicable Agent or Lender and shall promptly notify the Administrative Agent of any change(s) to beneficial ownership or control party information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)within ten (10) Business Days of the occurrence of any proceeding, action or litigation pending before any Governmental Authority (to the extent such Loan Party has knowledge or notice thereof), which, if adversely determined, would reasonably be expected to have a Material Adverse Effect on any Loan Party (taken as a whole), a written notice to the Required Lenders (with a copy to each Agent);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)simultaneously with the delivery of each Periodic Report, any reports and calculations prepared by, on behalf of or for any Manager or any Loan Party with regards to the Collections during the related Collection Period, if any; 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;(xii)upon request, copies of or access to all account statements and similar records relating to the Collection Accounts and each Borrower Account, promptly after the same become 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;(e)<u>Access to Records and Documents</u>. Upon reasonable advance notice and during normal business hours, the Loan Parties shall permit any Lender (or any Person designated by any Agent or such Lender) to visit and inspect and make copies thereof no more than one (1) time per year, or as often and at any time in the sole discretion of the Required Lenders following the occurrence of an Event of Default which remains continuing and has not been waived, of (i) the Manager's and each Loan Party's books, records and accounts relating to its business, financial condition, operations, assets, the Collateral and its performance under the Facility Documents and to discuss the foregoing with its and such Person's officers, partners, employees and accountants, (ii) any Collateral Documents and the ability to review and access any payment history with respect to the Collateral in the possession of or reasonably available to any Loan Party or any Manager and (iii) a listing or other description of all assets then owned by each Loan Party that are contemplated to generate any material amount of Collections, together with information sufficient to reconcile such listings with the information contained in Appraisals and Periodic Reports. The Loan Parties shall be responsible for the costs and expenses for one such visit per calendar year requested by the Administrative Agent (at the written direction of the Required Lenders), up to $50,000 per annum (which amount shall be in the aggregate for any visit conducted prior to an Event of Default under the Facility Documents), unless an Event of Default has occurred and is continuing, in which case the Loan Parties shall be responsible for all costs and expenses for each visit. The Loan Parties (and the Manager on their behalf) shall also consult with the Required Lenders (or any Person designated by the Required Lenders) in connection with any exercise of any similar inspection rights granted to it with respect to any Manager, any Obligor or any other Person, and will use commercially reasonable efforts to have the findings of any such inspection provided directly to the Required Lenders, or will promptly provide any such findings provided to it in connection with the exercise of such inspection rights to the Required Lenders. In the event a Loan Party has not exercised any such inspection rights granted to it, the Administrative Agent, solely if directed by the Required Lenders, shall request such Loan Party to exercise such rights, and such Loan Party will use reasonable efforts to comply with any such reasonable request to exercise inspection and audit 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;(f)<u>Use of Proceeds</u>. It may use the proceeds of any Advance made hereunder (i) to fund, pay or refinance the acquisition cost of assets acquired by such Loan Party in accordance with the Asset Acquisition Procedures on the related Borrowing Date, and all fees and expenses related thereto, and (ii) for general corporate and working capital purposes; <u>provided</u> that, no proceeds of any Advance shall be used for any acquisition or investment by a Loan Party, other than as permitted by <u>clause (i)</u> above.

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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)[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;(h)<u>No Other Business</u>. Such Loan Party shall not engage in any business or activity other than borrowing Advances pursuant to this Agreement, acquiring and owning music

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assets and entering into Collateral Documents in connection therewith and entering into the Facility Documents and any other agreements contemplated by this Agreement, and such limited activities as are related or ancillary thereto as contemplated by its Constituent Documents, and shall not engage in any other activity or take any other action that would cause any Loan Party to be subject to U.S. federal, state or local income tax on a net basis.

&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)<u>Tax Matters</u>. Such Loan Party shall treat the Advances as debt for U.S. federal, state and local income and franchise tax purposes and will take no contrary position except to the extent that a "determination" is made within the meaning of Section 1313(a) of the Code (or an analogous provision of other Law) that the Advances may not be treated as debt for such purposes. Such Loan Party shall at all times maintain its status as a "disregarded entity" for U.S. federal income tax purposes and shall not elect to be classified as other than a "disregarded entity" for U.S. federal income tax purposes, nor shall such Loan Party take any other action or actions that would cause it to be classified, taxed or treated as a corporation for U.S. federal income tax purposes, including a taxable mortgage pool treated as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes (including transferring interests in the Loan Party on or through an established securities market or secondary market (or the substantial equivalent thereof), within the meaning of Section 7704(b) of the Code (and Treasury regulations thereunder)). Such Loan Party shall only have owners of Equity Interests that are treated as U.S. Persons and shall not be subject to any requirement to withhold tax with respect to payments or income allocable to its direct or indirect beneficial owners (including under Section 1446 of the Code). In the event that any Loan Party becomes classified as a partnership for federal income tax purposes, (i) the partnership representative (or comparable person under state or local law, as applicable) shall, to the extent eligible, make the election under Section 6221(b) of the Code (or any similar comparable provision of state or local tax law) with respect to such Loan Party and take any other action such as filings, disclosures and notifications necessary to effectuate such election, and (ii) if the election described in the preceding clause (i) is not available, the partnership representative (or comparable person under state or local law, as applicable) shall, to the extent eligible, make the election under Section 6226(a) of the Code (or any similar comparable provision of state or local tax law) with respect to such Loan Party and take any other action such as filings, disclosures and notifications necessary to effectuate such election. 

&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)<u>Collections</u>. Such Loan Party shall cause and direct the Manager and each applicable Obligor to pay and deposit all Collections in respect of its assets directly to its respective Collection Account or to the Borrower Payment Account (or, solely with respect to any Non-Dollar Payments, the FX Aggregator Account). If for any reason such Loan Party, the Manager or any of their Affiliates otherwise receives any Collections, it shall cause such amounts to be deposited directly into the Borrower Payment Account (or such other account designated by the Administrative Agent, at the written direction of the related Loan Party) within two (2) Business Days following receipt and identification of the same. Any such Collections, for so long as they are in the possession of any Loan Party, the Manager or any of their Affiliates or any other Person, shall be held in trust for the benefit of the Secured Parties. Such Loan Party shall cause all Collections received in any Collection Account to be timely remitted to the Borrower Payment Account. Such Loan Party shall ensure that, except as expressly permitted hereunder, no Person other than the Collateral Agent shall have any Lien on, or any dominion or control of, any Borrower Account or any 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;(k)<u>Priority of Payments</u>. Such Loan Party shall ensure that all Collections and all other Distributable Cash is applied solely in accordance with the Priority of Payments and the other applicable provisions 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;(l)<u>Solvency</u>. After giving effect to each Advance hereunder, and the disbursement of the proceeds of such Advance, such Loan Party shall remain Solvent.

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&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)<u>Insolvency Events</u>. Such Loan Party shall timely object to all proceedings of the type described in clause (a) of the definition of "Insolvency Event" instituted against 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;(n)<u>Performance and Compliance with Collateral Documents</u>. Such Loan Party shall deliver, or cause to be delivered to the Lenders (with copies to the Administrative Agent), copies of all proposed additional Collateral Documents and amendments thereto to which it is or will be a party, prior to its execution and delivery thereof, and shall promptly deliver duly executed copies of such documents upon its entry into the same. Such Loan Party shall, at its expense, timely and fully perform and comply with all provisions, covenants and other promises (if any) required to be observed by it under each Collateral Document, including by withdrawing or causing to be withdrawn amounts from the applicable Borrower Liability Reserve Account to pay any liabilities thereunder when the same become due and payable.

&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)<u>Appraisals</u>. Such Loan Party will obtain or cause to be obtained updated Appraisals from Approved Appraisers complying with the Appraisal Requirements for each relevant asset owned by such Loan Party, (i) on each Borrowing Date (solely with respect to each new asset being acquired concurrently with such Borrowing Date), (ii) from time to time as determined by the Manager in accordance with the Management Standard, to ensure that the related Appraisal Value for such asset reflects the reasonable fair value of such asset and is reasonably current (and in any event as of a date within the most recent Appraisal), it being understood that such Appraisal pursuant to this <u>clause (ii)</u> shall not replace such Loan Party's obligation to provide Appraisals otherwise required by this <u>clause (o)</u>, (iii) from time to time as the written request of the Required Lenders and (iv) in respect of the entire Facility Pool, as of each anniversary of the first Asset Acquisition Date (each Appraisal delivered pursuant to this <u>clause (iv)</u>, an "<u>Annual Catalogue Appraisal</u>"), delivered to the Lenders within six (6) weeks of each such anniversary and followed by a Variance Report in accordance with the requirements in <u>Section 5.01(r)</u> below; <u>provided</u>, that any Appraisal obtained pursuant to clause (iii) shall be done at the sole cost and expense of such requesting Lenders. The Lead Borrower may, in its sole discretion, engage one or more Approved Appraisers to perform not more than two additional Appraisals, in the aggregate, within sixty (60) days of the delivery of any Annual Catalogue Appraisal and, upon delivery of any such additional Appraisal, if so elected by the Lead Borrower, the Appraisal Value of the Facility Pool shall be the average of the Annual Catalogue Appraisal and all such additional Appraisals.

&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)<u>Hedging</u>. Within sixty (60) days of the occurrence of a Hedging Trigger Event, the Initial Borrower shall enter into and maintain one or more Hedging Agreements in form and substance reasonably satisfactory to the Required Lenders for the purpose of offsetting or mitigating the related interest rate risk associated with at least 70% but not more than 110% of the aggregate principal amount of the Advances outstanding as of any date with a term through the date described in clause (a) of the definition of "Final Maturity Date". Such Loan Party shall not enter into any other Hedging Agreements without the consent of all of the Lenders and in no event shall the Loan Parties be permitted to enter into any speculative hedges or similar positions.

&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)<u>Books and Records</u>. Such Loan Party shall maintain, or cause to be maintained on its behalf, proper and complete financial and accounting books and records.

&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)<u>Variance Reports</u>. Such Loan Party will obtain from the Manager a Variance Report: (i) with respect to any specific Artist Catalogue, as of the date that is twelve (12) months following the date of acquisition of such Artist Catalogue and (ii) with respect to all Artist Catalogues that have been owned by a Loan Party for more than twelve (12) months, the date of each Appraisal delivered pursuant to <u>Section 5.01(o)</u> above. The Manager shall deliver a copy of each Variance Report prepared in accordance with this <u>Section 5.01(r)</u> to each Lender on

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or prior to the earlier of the Reporting Date or the Borrowing Date next following the date of such report.

&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)<u>Excepted Earn-out Liabilities</u>. The Borrowers will pay any Excepted Earn-out Liabilities when due under any Asset Transfer Agreement and shall reserve for such Excepted Earn-out Liabilities out of Collections pursuant to <u>Section 9.03</u>.

**Section 5.02<u>Negative Covenants of the Loan Party</u>**. Each Loan Party covenants and agrees that, until the Final Maturity Date (and thereafter until the date that all Obligations have been paid in full in cash (other than contingent indemnity obligations not yet due and owing)):

&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>Restrictive Agreements</u>. It shall not enter into or suffer to exist or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Liquidation; Merger; Sale of Collateral</u>. It shall not consummate any plan of liquidation, dissolution, partial liquidation, merger or consolidation (or suffer any liquidation, dissolution or partial liquidation) nor engage in any Asset Sale or 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 in cash of the Obligations or a Permitted Release).

&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)<u>Amendments to Constituent Documents</u>. Without the written consent of the Administrative Agent (as directed in writing by the Required Lenders), it shall (x) not take any action inconsistent with its Constituent Documents or (y) amend or modify (i) any Bankruptcy Remote Provisions or (ii) any other provisions of its Constituent Documents if such amendment or modification of such other provisions would 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;(d)<u>ERISA</u>. Neither it nor any member of its ERISA Group shall incur any material liability with regard to a Plan or Multiemployer Plan (including any actual liability on account of a member of the ERISA Group) and it shall not permit its assets to be treated as "plan assets" for purposes of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA.

&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)<u>Liens</u>. 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 expressly permitted by this Agreement and the other 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;(f)<u>Margin Requirements</u>. 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Restricted Payments</u>. 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; <u>provided</u>, <u>however</u>, that the Borrowers shall be permitted to make Restricted Payments in a manner consistent with and in compliance with this Agreement, so long as, as of the date of the release of such Restricted Payment, (i) no Event of Default or

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Unmatured Event of Default has occurred and is continuing and (ii) the LTV Ratio is less than or equal to 55.0%; <u>provided</u>, <u>further</u>, that the foregoing shall not limit the ability of the Borrowers to use funds released to the Borrowers pursuant to the Priority of Payments to acquire new Music Products in accordance with the terms 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;(h)<u>Changes to Filing Information</u>. It shall not change its name or jurisdiction of organization or cause or permit any other change that would cause the UCC information set forth in <u>Schedule 2</u> hereto to be inaccurate or incomplete, unless it gives written notice to each Agent (which may be through the delivery of an updated <u>Schedule 2</u>) no less than ten (10) Business Days prior to such change, and takes all actions necessary to protect and perfect a first priority perfected security interest in the Collateral in favor of the Collateral Agent (for the benefit of the Secured Parties), and shall promptly file appropriate amendments to all previously filed financing statements and continuation statements that are necessary to maintain or continue the perfection of the security interests of the Collateral Agent under this Agreement under each method of perfection required herein with respect to the Collateral (and shall provide copy of the same to each Agent). For the avoidance of doubt, neither Agent shall have any duty to confirm that the requirements under this <u>Section 5.02(h)</u> have been 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;(i)<u>Transactions with Affiliates</u>. 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 otherwise engage in any other transactions with, any of its Affiliates (such transaction, an "<u>Affiliate Transaction</u>"), except as expressly contemplated by this Agreement and the other Facility Documents, unless, in the case of any Affiliate that is not another Borrower, such Affiliate Transaction is upon terms no less favorable to such Borrower than it would obtain in a comparable arm's length transaction with a Person that is not an Affiliate (and, in making such determination, the Borrowers shall be entitled to rely on a fairness opinion is provided by a nationally recognized appraisal or investment banking firm with respect to such transaction).

&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)<u>Amendments to Certain Documents</u>. It shall not cause, enter into, permit or consent to any amendment, supplement or other modification to or any Administration Agreement, Music Agreement or Revenue-Generating Agreement except (i) with the consent of the Required Lenders or (ii) solely with respect to any such amendment, supplement or other modification to any Administration Agreement, Music Agreement or Revenue-Generating Agreement, as would not have a Material Adverse Effect on any Borrower or any Secured Party, as directed by the Manager in accordance with the Management Standard with prompt written notice thereof to the Required Lenders (with a copy to the Administrative Agent); <u>provided</u> that an amendment, supplement or other modification that alters the amount or timing of Collections shall not in itself be deemed to have such a Material Adverse Effect, so long as (x) an updated Appraisal is delivered in connection with such amendment, supplement or other modification and (y) no Manager Termination Event, Unmatured Event of Default or Event of Default shall result therefrom.

&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)<u>Investment Company Restriction</u>. 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)<u>Subject Laws</u>. It shall not utilize directly or indirectly the proceeds of any Advance for the benefit of any Person whose name appears on the List of Specially Designated Nationals and Blocked Persons maintained by OFAC, and shall maintain internal controls and procedures designed to ensure its continued compliance with the applicable provisions of the Subject 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;(m)<u>No Claims Against Advances</u>. 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

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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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)<u>Indebtedness; Guarantees; Securities; Other Assets</u>. 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 pursuant to or as expressly permitted by this Agreement and the other Facility Documents and shall not accept any advances or incur other obligations, in each case, from any third party, secured by or in lieu of future Collections on the Music Products. It shall not acquire any assets except in compliance with this Agreement and the other Facility Documents, including <u>Section 2.02</u> 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;(o)<u>Validity of this Agreement</u>. It shall not (i) except as permitted by this Agreement, take any action that would permit the validity or effectiveness of this Agreement 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 permit any Person to be released from any covenants or obligations with respect to this Agreement and (ii) except as permitted by this Agreement, take any action that would permit the Lien of this Agreement not to constitute a valid first priority security interest in the Collateral in favor of the Collateral Agent (for the benefit of the Secured Parties and subject to 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;(p)<u>Subsidiaries.</u> It shall not have or permit the formation of any subsidiaries, except, in the case of the Borrowers and the Subsidiary Guarantors party 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;(q)<u>Employees.</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)<u>Non-Petition.</u> Such Loan Party shall not be party to any agreements under which it has any material obligations or liability (direct or contingent), other than the Facility Documents, Asset Transfer Agreements, Storage Facility Access Letters and Asset Payment Instructions, and use commercially reasonable efforts to include customary "non-petition" and "limited recourse" provisions in any agreement into which it enter into under which it has any material obligations or liability (and shall not amend or eliminate such provisions in any agreement to which it is party).

&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)[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;(t)<u>Accounts</u>. Such Loan Party shall not assign or grant an interest in any rights it may have in any Collection Account or any Borrower Account to any Person other than the Collateral Agent. Such Loan Party shall not at any time invest, or permit any investment of, the funds deposited in any Collection Account or any Borrower Account other than in Eligible Investments. Such Loan Party shall not close or agree to close any Collection Account, the Acquisition Account or any Borrower Account, or except as expressly provided herein with respect to Borrower Accounts, open or permit to be opened any new account in its name or in which any of its property will be deposited or held, without the prior written consent of the Administrative Agent (acting at the written direction of the Required 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;(u)<u>Sanctions</u>. Such Loan Party shall not, and will procure that its Affiliates and its directors, officers, employees, agents, and joint venture partners shall not: (a) use, directly or indirectly, all or any part of the proceeds of any borrowing for the purpose of funding, financing, or facilitating any activities, business or transaction of any Sanctioned Person or in any Sanctioned Country, in violation of Sanctions, or in any other manner that would result in violation of Sanctions applicable to any party hereto; and (b) fund, directly or indirectly, all or

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part of, any repayment under this Agreement out of proceeds derived from dealings with or property of a Sanctioned Person, in violation of Sanctions.

&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)<u>Anti-Corruption Laws</u>. None of: (a) any Loan Party, any Affiliate, or any of their respective directors, officers, or employees; and (b) to the knowledge of any Loan Party, any person acting on behalf of such Loan Party or any Affiliates of such Loan Party, shall directly or indirectly use all or any part of the proceeds of any Advance for any purpose in violation of any applicable laws, rules, or regulations pertaining to bribery or corruption ("<u>Anti-Corruption Laws</u>"), including the U.S. Foreign Corrupt Practices Act of 1977, as amended, the U.K. Bribery Act 2010, and any applicable Anti-Corruption 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;(w)<u>SPV Guarantor</u>. No SPV Guarantor shall own or possess any material assets other than (i) the equity interests of its related Borrower, (ii) solely with respect to the Initial SPV Guarantor, the Borrower Accounts and (ii) assets held on a temporary basis.

**Section 5.03<u>Certain Undertakings Relating to Separateness</u>**. (a) Without limiting any, and subject to all, other covenants of the Loan Parties contained in this Agreement, each Loan Party shall conduct its business and operations separate and apart from that of any other Person (other than another Loan Party, but including their other respective Affiliates) and in furtherance of the foregoing, each Loan Party shall comply with all requirements of its Constituent Documents and shall additionally:

&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 amend, restate, supplement or otherwise modify its Constituent Documents in violation of this Agreement or in any respect that would impair its ability to comply with 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;(ii)maintain separate books and records in a manner sufficient to permit the assets and liabilities of the Loan Parties to be readily identifiable and distinguishable from those 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;(iii)hold itself out to the public and all other Persons as a legal entity separate from 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;(iv)file its own tax returns as may be required under applicable law to the extent (A) not part of a consolidated group filing a consolidated return or (B) not treated as a division or disregarded entity for tax purposes of another taxpayer, and pay any Taxes so required to be paid under 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;(v)except as expressly permitted by the Facility Documents, not commingle its assets with those 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;(vi)conduct its own business in its own name and strictly comply with all organizational formalities to maintain its separate existence;

&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)pay its own liabilities out of its own funds and not hold out the credit or assets of any other Person as being able to satisfy its obligations (other than as required or permitted by this Agreement and the other 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;(viii)observe all organizational formalities required by Applicable Law and its 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;(ix)not hold out its credit or assets as being available to satisfy the obligations of any other Person (other than the other Loan Parties hereunder);

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&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)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;(xi)not incur any Indebtedness, secured or unsecured, direct or indirect, absolute or contingent, with any Affiliate other than another Loan Party;

&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)otherwise maintain its assets in such a manner that it will not be costly or difficult to segregate, ascertain or identify its individual asset or assets, as the case may be, from those of any Affiliate or any other Person; 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;(xiii)cause all Persons acting on its behalf to act at all times with respect to such Loan Party in a manner consistent with and in furtherance of the foregoing and in the best interests of such Loan Party.

&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 Loan Party shall ensure that it maintains at least one (1) Independent Director at all times, and further ensure that any actions relating to (x) the dissolution or liquidation of any Loan Party or (y) the initiation of, participation in, acquiescence in or consent to any of the events described in the definition of "Insolvency Event," in each case, are only taken with the prior written consent of such Independent Director (the foregoing clauses (x) and (y), collectively, the "<u>Independent Director Actions</u>"). No Loan Party (nor any Person acting on its behalf) shall remove or replace any such Independent Director except for cause in accordance with its respective Constituent Document, any such removal or replacement will be subject in all cases to the appointment of an eligible successor Independent Director, and no Independent Director shall be removed or replaced unless the Borrower provides the Required Lenders with no less than five (5) Business Days' prior written notice of (i) any proposed removal of such Independent Director, and (ii) the identity of the proposed replacement Independent Director, together with a written certification from a Responsible Officer of the Borrower that such replacement satisfies the requirements for an Independent Director as set forth in the definition thereof. Upon the occurrence of any death, disability, resignation or other event that causes any such Independent Director to cease to be able to perform the functions of an Independent Director or otherwise creates a vacancy in such position, the Loan Parties shall promptly (and in any event within two (2) Business Days) notify the Required Lenders thereof in writing, and as promptly as practicable appoint a successor Independent Director reasonably acceptable to the Required Lenders satisfying the definition of "Independent Director," as certified to the Required Lenders by a Responsible Officer of such Loan Party in writing; it being understood that no action requiring the consent of such Independent Director (including, without limitation, any Independent Director Action) may be taken with respect to such Loan Party unless and until such successor Independent Director has been duly appointed. No such Independent Director may at any time serve as a trustee in bankruptcy for any Loan Party, the Manager or any of their respective Affiliates. No Loan Party shall make any amendment or change to its Constituent Documents which amends or alters any provision applicable to the rights and duties of the Independent Director without the written consent of the Administrative Agent (at the written direction of the Required 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;(b)Each Loan Party hereby acknowledges that each Lender is entering into the transactions contemplated by this Agreement in reliance upon the credit of the Loan Parties as a separate credit group independent of their other Affiliates, and each Loan Party's identity as a legal entity that is separate from its Affiliates.

**Article VI<br>EVENTS OF DEFAULT**

**Section 6.01<u>Events of Default</u>**. "<u>Event of Default</u>," wherever used herein, means any one of the following events (whatever the reason for such Event of Default and whether it shall

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be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&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)(i) a default in the payment when due of any principal of any Advance, (ii) a default, and such default shall continue unremedied for three (3) or more Business Days, in the payment when due of any interest on any Advance, or any other payment or deposit required to be made hereunder or under any other Facility Documents or (iii) the failure to reduce the outstanding Advances to $0 on the Final Maturity Date; 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)as of any Measurement Date, either (x) the DSCR is less than the Minimum DSCR or (y) the LTV Ratio is greater than the Maximum LTV Ratio, and in either case the Loan Parties shall have failed to cure such event as contemplated and to the extent permitted under <u>Section 6.03</u> for five (5) or more consecutive Business Days; 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)the Collateral Agent shall fail to have a first priority perfected security interest (for the benefit of the Secured Parties) in any material portion of the Collateral (subject to Permitted Liens), except with respect to any affirmative action taken by an Agent resulting in non-perfection; 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;(d)the failure of any representation or warranty of any Loan Party made in this Agreement, in any other Facility Document or in any certificate or other writing delivered pursuant hereto or thereto or in connection herewith or therewith to be correct in each case in all material respects when the same shall have been made (except to the extent any such representation or warranty is already qualified by materiality, in which case such representation and warranty shall be true and correct in all respects) and such failure shall remain uncured for a period in excess of thirty (30) days after the earlier of (x) written notice to the Loan Parties (which may be by email) by any Lender and (y) actual knowledge of a Responsible Officer of any Loan Party; <u>provided</u> that if such default or breach is reasonably susceptible of cure, but not within such thirty (30) day period, then the applicable Loan Party may be permitted up to an additional thirty (30) days to cure such default or breach in the manner provided in the Facility Documents provided that such Loan Party diligently and continuously pursues such cure; 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)a default in any material respect in the performance, or breach in any material respect, of any other covenant or other agreement of any Loan Party under this Agreement or the other Facility Documents and the continuation of such default or breach for a period of thirty (30) days after the earlier of (x) written notice to the Loan Parties (which may be by email) by any Lender and (y) actual knowledge of a Responsible Officer of any Loan Party; <u>provided</u> that if such breach is reasonably susceptible of cure, but not within such thirty (30) day period, then the applicable Loan Party may be permitted up to an additional thirty (30) days to cure such default or breach in the manner provided in the Facility Documents provided that such Loan Party diligently and continuously pursues such cure; 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 default in the performance or breach of any of the covenants set forth in <u>Section 2.02</u>, <u>5.01(a)(ii)</u>, <u>5.01(b)</u>, <u>5.01(i)</u>, <u>5.01(n)</u>, <u>5.01(o)</u>, <u>5.02</u>, <u>5.03(a)(i)</u> or <u>8.04</u> of this Agreement; provided, however, that if such default or breach is curable and the Administrative Agent (as directed in writing and determined by the Required Lenders in their sole and absolute discretion), shall have given notice to the Borrowers to cure such default or breach, failure to cure such default or breach within ten (10) days following such notice to the Borrowers; 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;(g)one or more enforceable judgments, orders or decrees for the payment of an amount exceeding $1,000,000 or adverse rulings (not fully paid or covered by insurance) shall be rendered against any Loan Party or the Manager (which, in the case of the Manager, exceeds $5,000,000 in the aggregate in uninsured liabilities and would otherwise reasonably be expected

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to have a Material Adverse Effect on such Person) and with respect to which such Person has knowledge (or should have knowledge) and such judgment or ruling shall remain unsatisfied, unvacated, unbonded or unstayed for a period in excess of sixty (60) days; 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;(h)an Insolvency Event relating to any Loan Party or the Manager shall have occurred; 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)the Management Agreement fails to be in place or is otherwise terminated and the Borrowers fail to appoint a replacement manager acceptable to the Required Lenders within thirty (30) days following the date of such default, occurrence, failure or termination; 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;(j)a Change of Control shall have occurred without the consent of the Required Lenders; 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;(k)any Loan Party becomes treated as an association taxable as a corporation or a publicly traded partnership taxable as a corporation for U.S. federal income tax purposes; 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;(l)any Loan Party becomes an investment company required to be registered under the Investment Company Act; 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;(m)(i) any Facility Document (other than an Administration Agreement, Music Agreement or Revenue-Generating Agreement) shall (except in accordance with its terms) terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of any Loan Party or the Manager, as applicable, or (ii) any Loan Party or the Manager shall contest in any manner the effectiveness, validity, binding nature or enforceability of any Facility Document or any Lien purported to be created thereunder; 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;(n)as of any date of determination, one or more Revenue-Generating Agreement(s) that, either individually or in the aggregate, represent an Appraisal Value that would exceed five percent (5%) of the Aggregate Collateral Value, during the ninety (90) day period immediately prior to such date, shall terminate or cease to create an enforceable obligation against the related Obligor(s), or any Obligor(s) so assert(s) in writing, and no Revenue-Generating Agreement Cure has occurred within sixty (60) days following such date of determination, and the foregoing would be reasonably expected to result in a Material Adverse Effect.

**Section 6.02<u>Remedies upon an Event of Default</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)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, the Administrative Agent, solely at the written direction of the Required Lenders, by notice to the Borrowers, shall declare the principal of and the accrued interest on the Advances and all other amounts whatsoever payable by the Borrowers 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 each Borrower; <u>provided</u> that, upon the occurrence of any Event of Default described in <u>Section 6.01(h)</u>, the Advances and all such other amounts shall automatically become due and payable, without any further action by any party.

&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)Upon the occurrence and during the continuation of an Event of Default, following written notice by the Administrative Agent (provided solely at the direction of the Required Lenders) of the exercise of control rights with respect to the Collateral pursuant to and in accordance with the UCC, the Borrowers will sell or otherwise dispose of all or any of their

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assets to repay the Obligations as directed by the Administrative Agent (at the written direction of the Required Lenders), <u>provided</u> that any such sale or other disposition directed by the Administrative Agent (acting at the written direction of the Required Lenders) shall be on commercially reasonable terms. The proceeds of any such sale or disposition shall be applied 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;(c)The Required Lenders hereby agree that they shall not direct the Administrative Agent or the Collateral Agent to give any notice of exclusive control, default notice or other similar notice under any Facility Document unless an Event of Default shall have occurred and is continuing. Following the waiver of any Event of Default in accordance with the terms hereof, and subject to the satisfaction of the terms and conditions specified in such waiver (if any), the Required Lenders agree to promptly direct the Administrative Agent and the Collateral Agent in writing to notify the recipient of any such notice of exclusive control, default notice or other similar notice that it is withdrawing such notice previously delivered in connection with such Event of Default 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;(d)For the purpose of enabling each Agent to exercise rights and remedies under this Agreement at such time as such Agent shall be lawfully entitled to exercise such rights and remedies, each Borrower hereby grants to each Agent an irrevocable non-exclusive license (exercisable without payment of royalty or other compensation to any Borrower), to use, license or sublicense (to the extent permitted under any IP License) any of the Collateral consisting of Intellectual Property now owned or hereafter acquired by such Borrower, and including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. The use of such license by an Agent may be exercised only upon the occurrence and during the continuation of an Event of Default and only in connection with the operations and business of such Borrowers; <u>provided</u> that (i) any license, sublicense or other transaction entered into by any such Agent in accordance herewith shall be binding upon each Borrower notwithstanding any subsequent cure of an Event of Default and (ii) each Agent shall only exercise the use of any such license upon the written direction of the Required 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;(e)In advance of the direct receipt by the Collateral Agent of any proceeds from the Collateral, the Collateral Agent, at the written direction of the Required Lenders, shall establish a segregated interest bearing trust account which shall be designated as the "<u>Collateral Proceeds Account</u>." The only permitted withdrawals from or application of funds on deposit in, or otherwise to the credit of, the Collateral Proceeds Account shall be to pay the amounts specified herein and in accordance with the Priority of Payments in accordance with the direction of the Administrative Agent (acting at the written direction of the Required Lenders). The Borrowers shall not have any legal, equitable or beneficial interest in the Collateral Proceeds Account other than in accordance with the Priority of Payments. Funds in the Collateral Proceeds Account shall be invested in Eligible Investments as directed in writing by the Administrative Agent (acting at the written direction of the Required Lenders). In the absence of any such written direction, amounts on deposit in the Collateral Proceeds Account shall remain uninvested.

**Section 6.03Permitted Contributions.** 

&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 Borrowers may from time to time accept Cash contributions in respect of their Equity Interests (but in no event shall any Person be obligated to make any such Cash contributions), and subject to <u>Section 6.03(b)</u> below, to the extent such Cash contributions are deposited in a Restricted Borrower Account and written certification from a Responsible Officer of each Borrower confirming receipt thereof has been delivered to the Approved Account Bank, may be applied as Distributable Cash in accordance with the Priority of Payments. Except with respect to Permitted Cure Contributions to the extent set forth in <u>Section 6.03(b)</u> below, no such

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Cash contributions shall be included or otherwise taken into account in the calculation of Net Cash Flow or any LTV Ratio.

&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 Borrowers may (but are not required to), upon delivery of written certification from a Responsible Officer of each Borrower to the Administrative Agent at least five (5) Business Days' prior, designate all or a portion of any such Cash contributions as (i) a cure contribution that increases the amount of Collections and Net Cash Flow for the Collection Period during which such contributions were made by the Dollar amount of such contribution, which contribution shall accordingly improve the DSCR for such Collection Period and be applied as Distributable Cash on the following Payment Date (each, an "<u>DSCR Cure Contribution</u>"), (ii) a cure contribution that will be retained in the Cure Contribution Holding Account and increase the Aggregate Collateral Value by an amount equal to the Dollar amount of such contribution, and accordingly improve the LTV Ratio for each Measurement Date until the Payment Date until such amounts are released pursuant to <u>Section 9.02</u> or at the direction of the Borrowers for so long as no Manager Termination Event, Unmatured Event of Default or Event of Default has occurred and is continuing or would result therefrom, for application as Distributable Cash (each, a "<u>LTV Cure Contribution</u>") or (iii) a cure contribution that will be applied in connection with an Optional Prepayment (subject to the payment of any related fees pursuant to the Lender Fee Letter and the BNY Fee Schedule), in order to reduce the aggregate outstanding principal amount of the Advances (and interest expected to accrue thereon), and accordingly improve the LTV Ratio and the DSCR through such prepayment of Advances (a "<u>Prepayment Cure Contribution</u>" and, together with the DSCR Cure Coverage Contribution and the LTV Cure Contributions, "<u>Permitted Cure Contributions</u>"); <u>provided</u> that: (A) the Borrowers may only designate one type of Permitted Cure Contribution for the related cash or portion thereof being contributed; (B) no more than two (2) Permitted Cure Contributions may be made in the same calendar year; and (C) no more than six (6) Permitted Cure Contributions may be made during the term of this Agreement.

**Article VII<br>PLEDGE OF COLLATERAL; RIGHTS OF THE AGENTS**

**Section 7.01<u>Grant of Security</u>**. (a) Each Loan Party 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 first priority security interest in, and a Lien upon, all of its right, title and interest in, to and under, all of its assets and property, in each case whether tangible or intangible, wheresoever located, and whether now owned by it or hereafter acquired and whether now existing or hereafter coming into existence, including each of the following (all of the property described in this <u>Section 7.01(a)</u> being collectively referred to herein as the "<u>Collateral</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)in the case of each Borrower, the Equity Interests in its respective Subsidiary Guarantors and in the case of each SPV Guarantor, the Equity Interest in its respective 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;(ii)all Intellectual Property and all IP Licenses, but excluding (A) any intent-to-use Trademark application prior to the filing and acceptance of a "Statement of Use" or an "Amendment to Allege Use" with respect thereto, to the extent, if any, and solely during the period, if any, in which, the grant of a security interest therein would impair the validity or enforceability of any registration issuing from such intent-to-use application under applicable federal Law and (B) any IP License if the grant of a security interest therein would cause the applicable Loan Party to be in breach of the IP License, or if it would result in the loss, termination or impairment of any rights of the Loan Party in the licensed intellectual property;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Asset Files, Master Recordings, Musical Compositions, Inventory, Music Products, Music Product Rights, Music Publishing and Master Distribution Rights and all rights to access or otherwise with respect to Storage Facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Asset Agreements and all other Collateral Documents (and all rights, remedies, powers, privileges and claims thereunder or in respect thereto, whether arising pursuant to the terms thereof or otherwise available at law or equity, including the right to enforce each such Collateral Document, both now and hereafter owned), including all Collections, insurance policies, insurance rights and other Proceeds thereon or with respect thereto and all interest, dividends, distributions and other Money or property of any kind distributed in respect of 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)each Borrower Account and each Collection Account, and all Cash and other property on deposit therein or credited 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)each Facility Document (other than this Agreement) and all rights, remedies, powers, privileges and claims thereunder or in respect thereto (whether arising pursuant to the terms thereof or otherwise available 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 such Loan Party could but for the collateral assignment and security interest granted to the Collateral Agent (for the benefit of the Secured Parties) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)all right, title and interest of such Loan Party in any and all Hedging Agreements and the transactions contemplated thereunder, and any and all present and future amounts payable by a Hedge Counterparty to such Loan Party under or in connection with its respective Hedging Agreement and the transactions contemplated 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;(viii)all rights to payment under all servicer contracts and other contracts and agreements associated with the Collections and all rights of recourse relating 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)all accounts, chattel paper (including electronic chattel paper), deposit accounts, securities accounts, security entitlements, financial assets, payment intangibles, general intangibles, instruments, investment property, letter-of-credit rights and other supporting obligations relating or credited to the foregoing (in each case as defined in the UCC), commercial tort claims and all other property of any type or nature in which such Loan Party has an interest, whether tangible or intangible, and all other property of each Loan Party which is delivered to the Collateral Agent by or on behalf of the Loan Party (whether in compliance with the Asset Acquisition Procedures or otherwise);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)all other general intangibles and payment intangibles of such Loan Party, including all general intangibles of such Loan Party which are delivered to the Collateral Agent (or any custodian on its behalf) by or on behalf of such Loan Party or held by any Person by or on behalf of such Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)all security interests, Liens, collateral, property, equipment, 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

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)all Proceeds of any and all 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;(a)All terms used in this <u>Section 7.0</u>1 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. Each Loan Party hereby designates each Agent as its agent and attorney in fact to file any UCC financing statement, continuation statement and all other instruments, and to take any other actions contemplated by this <u>Article VII</u>; <u>provided</u> that such designation shall not impose upon any Agent any such obligations, or release or diminish in any respect any Loan Party's obligations in respect thereof, and provided further, that no such Agent shall file any such documents or take any such actions other than at the written direction of Required Lenders. Each Loan Party further hereby authorizes the Loan Party's counsel to file, without such Loan Party's signature, UCC financing statements that name such Loan Party as debtor and the Collateral Agent as secured party (for the benefit of the Secured Parties) and that describe 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. Each Loan Party authorizes the UCC financing statement naming such Loan Party as debtor to describe the Collateral therein as "all assets" or words of similar import.

**Section 7.02<u>Intellectual Property</u>**. Each Loan Party covenants 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;(a)On each applicable Asset Acquisition Date, such Loan Party shall sign and deliver to the Lenders and the Agents (to the extent not previously so delivered), Intellectual Property Security Agreements with respect to all Intellectual Property owned or being acquired by such Loan Party. Such Loan Party shall promptly notify the Agents if it knows that any application or registration relating to any Registered Intellectual Property may become abandoned or dedicated to the public domain, or if it knows of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office or any court or tribunal in any country) regarding such Loan Party's ownership of such Registered Intellectual Property or its right to register the same or to keep and maintain the same.

&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)Whenever a Loan Party, either by itself or through any agent, employee, licensee or designee, shall file an application for the registration of any Copyright, Patent or Trademark with the United States Copyright Office, the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, such Loan Party shall report such filing to the Administrative Agent on or before the next Reporting Date. Upon request of the Administrative Agent, such Loan Party shall execute and deliver an Intellectual Property Security Agreement and any and all other agreements, instruments, documents, and papers as the Administrative Agent may reasonably request to evidence the Collateral Agent's and the other Secured Parties' security interest in such Intellectual Property and the goodwill and general intangibles of such Loan Party relating thereto or represented thereby, and such Loan Party hereby constitutes each Agent its attorney-in-fact to execute and file all such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed subject to the terms of <u>Section 7.01(b)</u>; such power being coupled with an interest is irrevocable until this Agreement is terminated.

&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)Such Loan Party shall take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Copyright Office, the United States Patent and Trademark Office, and including filing of applications for renewal, affidavits of use and affidavits of incontestability, to maintain and pursue each material application (and to obtain the relevant registration) and to maintain all material Registered Intellectual Property.

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&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 event that any Loan Party obtains knowledge that any Copyright, Patent, Trademark or other material Intellectual Property included in the Collateral is infringed, misappropriated or diluted by a third party, such Loan Party shall promptly notify each Agent after it learns thereof and shall, unless inconsistent with such Loan Party's usual business practice, promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution, or take such other actions as such Loan Party shall reasonably deem appropriate under the circumstances to protect such Copyright, Patent, Trademark or other material Intellectual Property.

&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)Upon and during the continuance of an Event of Default, (i) no Loan Party shall abandon or otherwise permit any Registered Intellectual Property to become invalid or otherwise terminated (other than by expiration) and (ii) each Loan Party shall use its commercially reasonable efforts to obtain all requisite consents or approvals by the licensor of each IP License that constitutes Collateral owned by such Loan Party to effect the assignment of all such Loan Party's right, title and interest thereunder to the Collateral Agent (for the benefit of the Secured Parties) or such other Person as may be designated by the Administrative Agent (at the written direction of the Required 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;(f)Each Loan Party shall, at its expense, promptly deliver to each Agent a copy of each notice or other communication received by it by which any other party to any IP License (i) declares a default by a Loan Party thereunder, (ii) terminates or threatens in writing to terminate such IP License or (iii) purports to exercise any of its rights, together with a copy of any reply by such Loan Party 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;(g)Each Loan Party shall duly perform and observe in all material respects all of its obligations under each IP License and shall take all action necessary to maintain each IP License in full force and effect. No Loan Party shall, without the prior written consent of the affected Agent or Secured Party (or any such Agent acting at the written direction of the Required Lenders), cancel, terminate, amend or otherwise modify in any respect, or waive any provision of, any IP License in any manner that could reasonably be expected materially and adversely to affect the rights and remedies of any Agent or any other Secured Party under this Agreement or any other Facility Document or the ability of the other Secured Parties to exercise the same.

**Section 7.03<u>Release of Security Interest upon Final Payment</u>**. If (x) all Obligations have been paid in full in cash and (y) all Hedging Agreements with Secured Hedge Counterparties have expired or have been terminated and any all termination amounts arising therefrom shall be paid in full in cash (or other arrangements satisfactory to the applicable Secured Hedge Counterparty have been made), the Agents (for themselves and on behalf of the other Secured Parties) shall, at the expense of the Loan Parties, promptly execute, deliver and file or authorize for filing such instruments as the Loan Parties shall reasonably direct in writing and prepare in order to reassign, release or terminate the Secured Parties' security interest in the Collateral, which release shall constitute a Permitted Release under <u>Section 8.04</u>.

**Section 7.04<u>Rights and Remedies</u>**. 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 shall (solely upon written direction by the Required Lenders, which direction shall include, without limitation (a) the time, method, form and scope of such remedy, (b) voting and/or consent instructions and (c) method of disposition and the identity of any and all agents to be engaged in connection therewith), among other remedies: (i) instruct any Loan Party (or the Manager, as applicable) to deliver any or all of the Collateral, the Collateral Documents and any other documents relating to the Collateral to the Collateral Agent or to

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another Person designated by the Required Lenders, and otherwise give all instructions for each Loan Party 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 Collateral 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 each Loan Party's rights and remedies with respect to the Collateral; (vii) institute or prosecute legal and equitable proceedings to enforce collection of, or realize upon, any of the Collateral; (viii) require that each Loan Party 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 Facility Documents; (ix) redeem or withdraw or cause any Loan Party to redeem or withdraw any asset of such Loan Party to pay amounts due and payable in respect of the Obligations; (x) make copies of or, if necessary, remove from any Loan Party's, the Manager's and their respective agents' place of business all books, records and documents relating to the Collateral; and (xi) endorse the name of any Loan Party upon any items of payment relating to the Collateral or upon any proof of claim in bankruptcy against an Obligor. The proceeds of any sale or disposition of the Collateral shall be applied in accordance with the Priority of Payments.

Each Loan Party hereby agrees that, upon the occurrence and during the continuance of an Event of Default, at the request of any Agent or the Required Lenders, it shall execute all documents and agreements which are reasonably necessary or appropriate to have the Collateral to be assigned to the Collateral Agent (for the benefit of the Secured Parties) or to another Person designated by the Administrative Agent (at the written direction of the Required Lenders). For purposes of taking the actions described in the paragraph above, each Loan Party hereby irrevocably appoints each 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 such Agent or in the name of such Loan Party or otherwise, for the use and benefit of the Secured Parties, but at the cost and expense of the Loan Parties and, except as prohibited by Applicable Law, without notice to any Loan Party.

**Section 7.05<u>Remedies Cumulative</u>**. 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 any Agent 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; <u>provided</u>, <u>however</u>, that no Secured Party may exercise any rights or remedies hereunder other than through the Collateral Agent (as directed in writing by the Required Lenders and subject to the terms of this Agreement) or as consented to by the Required Lenders; <u>provided, further</u>, however, that the Required Lenders may exercise any rights and remedies hereunder if, after directing the Collateral Agent in writing, the Collateral Agent does not comply with such instructions for any reason.

**Section 7.06<u>Collateral Documents</u>**. (a) Each Loan Party hereby agrees that, after the occurrence and during the continuance of an Event of Default it shall (i) upon the written request of any Agent, promptly forward to each Agent all material information and notices which it receives under or in connection with the Collateral Documents, and (ii) upon the written request of any Agent, act and refrain from acting in respect of any request, act, decision or vote under or

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in connection with the Collateral Documents only in accordance with the direction of the Administrative Agent or the Collateral Agent (each as directed in writing by the Required Lenders). Without limiting the foregoing, each Loan Party hereby further agrees that each Agent may, and hereby authorizes each Agent to, in its name and stead, following the occurrence and during the continuance of an Event of Default, instruct applicable Obligors and otherwise cause any and all Collections in respect of such Loan Party's assets to be paid directly to one or more accounts designated by such 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;(a)Each Loan Party agrees that, to the extent the same shall be in such Loan Party's possession, it will hold all Collateral Documents and other documents relating to the Collateral in trust for the Collateral Agent on behalf of the Secured Parties (and shall cause the Manager and any other Person holding such documents on its behalf to do the same), and upon request of any Agent or 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 to another Person designated by the Administrative Agent (at the written direction of the Required Lenders).

**Section 7.07<u>Loan Party Remains Liable</u>**. (a) Notwithstanding anything herein to the contrary, (i) each Loan Party shall remain liable under the contracts and agreements included in and relating to the Collateral (including the Collateral 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 any Loan Party 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No obligation or liability of any Loan Party is intended to be assumed by any Agent or any other Secured Party under or as a result of this Agreement or the other Facility Documents, and the transactions contemplated hereby and thereby, including under any Collateral Document or any other agreement or document that relates to Collateral and, to the maximum extent permitted under provisions of law, the Agents and the other Secured Parties expressly disclaim any such assumption.

**Section 7.08<u>Protection of Collateral</u>**. Each Loan Party shall from time to time execute and deliver, or caused to be executed and delivered, all such supplements and amendments hereto and file or authorize the filing of all such UCC financing statements, continuation statements, 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;&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;&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 or any other Facility Document including the first priority nature of the lien or 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;&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 or regulations);

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

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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;&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.

Each Loan Party hereby designates each Agent as its agent and attorney in fact to file any UCC financing statement, continuation statement and all other instruments, and take all other actions required pursuant to this Section; <u>provided</u> that such designation shall not impose upon any Agent any such obligations, or release or diminish in any respect any Loan Party's obligations in respect thereof, and provided further, that no such Agent shall file any such documents or take any such actions other than at the written direction of the Required Lenders. Subject to the foregoing proviso, each Loan Party hereby further authorizes such Loan Party's counsel to file, without such Loan Party's signature, UCC financing statements that names such Loan Party as debtor and the Collateral Agent as secured party (for the benefit of the Secured Parties) and that describes "all assets in which the debtor now or hereafter has rights" or words of similar import 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 8.01<u>Collection of Money</u>**. Except as otherwise expressly provided herein, the Collateral Agent shall (acting solely at the written direction of the Required Lenders) demand payment or delivery of, and shall receive and 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 in the Collateral Proceeds Account and property received by it in accordance with this Agreement for the Secured Parties and shall apply it as provided in this Agreement.

**Section 8.02<u>Borrower Accounts</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)<u>Borrower Payment Account</u>. The Initial SPV Guarantor shall on or prior to the initial Borrowing Date hereunder establish at an Approved Account Bank a securities account (or a linked deposit account and securities account) in the name of the Initial SPV Guarantor, which shall be designated as a "Borrower Payment Account" (all such accounts, collectively, the "<u>Borrower Payment Account</u>"), which shall be maintained with such Approved Account Bank in accordance with the related Account Control Agreement and which shall be subject to the Lien of the Collateral Agent (for the benefit of the Secured Parties). The Borrowers shall direct the Manager to cause all Collections received in any Collection Account denominated (i) in Dollars to be promptly remitted to the Borrower Payment Account, and in any event by no later than the fifth (5<sup>th</sup>) Business Day following the calendar month in which such Collections were received, and (ii) in a currency other than Dollars to be promptly remitted to the FX Aggregator Account and to be transferred from there to the Borrower Payment Account by no later than the fifth (5<sup>th</sup>) Business Day following the calendar month in which such Collections were received. All property deposited from time to time in the Borrower Payment Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved

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Account Bank as part of the Collateral and shall only be withdrawn for application as Distributable Cash in accordance with the Priority of Payments on each Payment Date. All amounts on deposit in the Borrower Payment Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required 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;(b)<u>Borrower Interest Reserve Account</u>. The Initial SPV Guarantor shall, on or prior to the initial Borrowing Date hereunder, establish at an Approved Account Bank a securities account (or a linked deposit account and securities account) in the name of the Initial SPV Guarantor, which shall be designated as the "Borrower Interest Reserve Account" (all such accounts, collectively, the "<u>Borrower Interest Reserve Account</u>"), which shall be maintained with such Approved Account Bank in accordance with the related Account Control Agreement and which shall be subject to the Lien of the Collateral Agent. On the initial Borrowing Date, from the proceeds of such Borrowing or otherwise, the Borrowers shall cause to be deposited in the Borrower Interest Reserve Account an amount sufficient to cause the amounts on deposit therein to be equal to the Interest Reserve Required Amount, and additional amounts shall be deposited into the Borrower Interest Reserve Account to the extent required pursuant to the Priority of Payments on each Payment Date. All property deposited from time to time in the Borrower Interest Reserve Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral and shall only be withdrawn for application as Distributable Cash in accordance with the Priority of Payments on each Payment Date. All amounts on deposit in the Borrower Interest Reserve Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required 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;(c)<u>Borrower Liability Reserve Accounts</u>. The applicable Borrower shall, on or prior to the related Asset Acquisition Date, establish at an Approved Account Bank a Borrower Liability Reserve Account in the name of such Borrower for the purpose of reserving for any Borrower liabilities that are required to be reserved for pursuant to the Asset Acquisition Procedures. Each such Borrower Liability Reserve Account shall be maintained at an Approved Account Bank in accordance with the related springing Account Control Agreement and shall be subject to the Lien of the Collateral Agent. The Borrowers shall fund or cause to be funded each such Borrower Liability Reserve Account, from funds previously released to the Borrowers pursuant to the Priority of Payments or from other non-Collateral funds available to the Borrowers, in the amount required under the Asset Acquisition Procedures by no later than the related Asset Acquisition Date; <u>provided</u> that, solely with respect to any Excepted Earn-out Liabilities arising under any Asset Transfer Agreements, the Borrowers may fund such liabilities out of the proceeds of the Advances borrowed in connection with the related acquisition of assets. Such amounts and all other property deposited from time to time in any Borrower Liability Reserve Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral. The Borrowers (or the Manager on their behalf) (i) shall withdraw amounts from each such Borrower Liability Reserve Account from time to time to pay the associated liabilities reserved for in accordance with <u>Section 5.01(n)</u>, and (ii) may, to the extent of any other permanent reduction or termination in the amount of the associated liabilities being reserved for in any such Borrower Liability Reserve Account, as certified by the Manager on behalf of the Borrowers to the Agents, withdraw an amount corresponding to such reduction or termination and deposit such amounts as Collections in the Borrower Payment Account, for application in accordance with the Priority of Payments (without any duplication) on the following Payment Date. With respect to any Borrower Liability Reserve Account that constitutes a securities account, amounts on deposit in such

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Borrower Liability Reserve Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required Lenders). Amounts on deposit in any Borrower Liability Reserve Account that constitutes a deposit account shall remain uninvested.

&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)<u>Acquisition Account</u>. The Initial SPV Guarantor shall, on or prior to the initial Borrowing Date hereunder, establish at an Approved Account Bank a securities account (or a linked deposit account and securities account) in the name of the Initial SPV Guarantor, designated as the "Acquisition Account" (all such accounts, collectively, the "<u>Acquisition Account</u>"), into which the proceeds of all Advances shall be made on their related Borrowing Dates. The Borrowers shall procure that the Acquisition Account shall not be changed or moved to another Approved Account Bank without the prior written consent of the Administrative Agent (acting at the written direction of the Required 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;(e)<u>FX Aggregator Account</u>. The Initial SPV Guarantor shall, on or prior to the acquisition of any Collateral consisting of Non-Dollar Payments, establish at an Approved Account Bank a currency aggregator account in the name of the Initial SPV Guarantor, designated as the "FX Aggregator Account" (all such accounts, collectively, the "<u>FX Aggregator Account</u>"), into which all Non-Dollar Payments shall be made, and all such Non-Dollar Payments shall be converted into Dollars at the applicable spot rate at the time of such deposit into the FX Aggregator Account. The Borrowers shall direct the Manager to cause all amounts on deposit in the FX Aggregator Account to be deposited into the Borrower Payment Account by no later than the fifth (5<sup>th</sup>) Business Day following the calendar month in which such Collections were received.

&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)<u>Other Borrower Accounts; Borrower Accounts Generally</u>. The Borrowers may from time to time establish additional Borrower Accounts (i) as a Restricted Borrower Account to reserve for any specific Obligations required to be paid pursuant to the Priority of Payments on a subsequent Payment Date, as contemplated by this Agreement or the other Facility Documents or (ii) with the prior written consent of the Required Lenders. Each such Borrower Account shall be maintained at an Approved Account Bank in accordance with the related Account Control Agreement and shall be subject to the Lien of the Collateral Agent. All property deposited from time to time in any such Borrower Account pursuant to this Agreement or any other Facility Document shall be held by the related Approved Account Bank as part of the Collateral. Amounts on deposit in (A) any Managed Borrower Account may be withdrawn or distributed by any Borrower (or the Manager on behalf of any Borrower) for so long as no Manager Termination Event or Event of Default has occurred and continuing, (B) any Restricted Borrower Account may only be withdrawn for application in accordance with the Priority of Payments on the applicable Payment Date in accordance with the related Periodic Report, or as otherwise consented to by the Required Lenders in writing, and (C) any additional Borrower Account established from time to time may only be withdrawn under the terms, conditions and circumstances specified by the Administrative Agent (at the written direction of the Required Lenders) in connection with the establishment thereof. With respect to any Borrower Account that constitutes a securities account, amounts on deposit in such Borrower Account may be invested solely in Eligible Investments on behalf of the Borrowers as directed by the Lead Borrower (or the Manager on its behalf), unless a Manager Termination Event or an Event of Default has occurred and is continuing, in which case any such investment shall be subject to the Administrative Agent's prior written consent (acting at the written direction of the Required Lenders). Amounts on deposit in any Borrower Account that constitutes an interest bearing deposit account shall remain uninvested.

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**Section 8.03<u>Periodic Report; Accountings</u>**. The Borrowers shall provide (or cause to be compiled and provided) to the Agents (upon receipt of which, the Administrative Agent shall promptly deliver a copy of the same to each Lender) a report (each, a "<u>Periodic Report</u>") by no later than 1:00 p.m. on each Reporting Date, with respect to the Collection Period most recently ended and as of the related Determination Date. Each such Periodic Report shall contain the information contemplated by <u>Schedule 3</u> hereto, and shall be delivered together with a written certification from a Responsible Officer of each Borrower which describes, in such detail as the Administrative Agent (at the written direction of the Required Lenders) shall reasonably require, with respect to each Borrower, all registrations and applications to register any Intellectual Property with the U.S. Patent and Trademark Office, the U.S. Copyright Office or in any similar office or agency of the United States, any State thereof, or any other country or any political subdivision thereof, as applicable, that were made, filed or obtained by such Borrower since the prior Reporting Date.

**Section 8.04<u>Permitted Releases</u>**. (a) Collateral may be released, in whole or in part, from the Collateral Agent's Lien, subject to compliance with the provisions of this <u>Section 8.04</u>, in the following cases (each, a "<u>Permitted Release</u>"): (i) Cash distributions released to the Borrowers in accordance with the Priority of Payments, (ii) upon payment in full in cash of the Obligations as contemplated in <u>Section 7.03</u>, (iii) in connection with the exercise of remedies by the Agents, (iv) in connection with any sale, disposition or other transfer of any asset or assets permitted hereunder of any Borrower (including any partial sales of any Music Products), subject to the related Approved Account Bank's receipt of the Mandatory Prepayment Amount and payment of any amounts required pursuant to <u>Section 2.12</u> and (v) to the extent consented to in writing by the Required 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;(a)Each such Permitted Release shall be without recourse, representation or warranty to or on the part of each Borrower that remains party to this Agreement after giving effect to such Permitted Release, unless the Required Lenders have otherwise consented in writing.

&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)Each Permitted Release contemplated by <u>Section 8.04(a)(i)</u>, <u>(ii)</u> and <u>(iii</u>) shall be automatic and require no further action by 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;(c)Each Permitted Release contemplated by <u>Section 8.04(a)(iv)</u> shall be subject to the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 prior delivery of a Release Request by the Lead Borrower (or the Manager on its behalf), duly executed and delivered by the parties thereto, accompanied 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)(A) if no Manager Termination Event or Event of Default has occurred and is continuing prior to such Permitted Release, a certificate of a Responsible Officer of such Borrower, certifying (1) that such Permitted Release is permitted under the Facility Documents and this <u>Section 8.04(d)</u>, (2) the amount of the applicable Release Proceeds and setting forth the calculation thereof (and the Lenders hereby authorize and direct the Administrative Agent to rely on such certificate in performing its obligations under this Section 8.04(d)), (3) that on a *pro forma* basis after giving effect to such Permitted Release and application of the Mandatory Prepayment Amount in accordance with the Priority of Payments, no such event shall have occurred and be continuing, (4) after giving effect to such

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Release Request, that the Acquisition/Disposition LTV Ratio on a *pro forma* basis after giving effect to such Permitted Release shall be maintained or improved and (5) the Aggregate Collateral Value on a *pro forma* basis after giving effect to such Permitted Release and setting forth the calculation thereof, 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)(B) if a Manager Termination Event, Event of Default or Unmatured Event of Default has occurred and is continuing prior to such Permitted Release, (1) prior written consent of the Required Lenders and (2) a certificate of a Responsible Officer of such Borrower, certifying (a) that such Permitted Release is permitted under the Facility Documents and this <u>Section 8.04(d)</u>, (b) the amount of the applicable Release Proceeds and setting forth the calculation thereof (and the Lenders hereby authorize and direct the Administrative Agent to rely on such certificate in performing its obligations under this <u>Section 8.04(d)</u>), (c) on a *pro forma* basis after giving effect to such Permitted Release and the related concurrent Optional Prepayment (which may provide for prepayments of Advances in excess of the related Release Proceeds (or Minimum Release Price)), that no Manager Termination Event or Event of Default shall have occurred and be continuing and (d) the Aggregate Collateral Value on a *pro forma* basis after giving effect to such Permitted Release and setting forth the calculation 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)the consummation of such related concurrent Optional Prepayment (including the payment of (x) all required principal payments in respect of the Advances and (y) all breakage and termination payments under any Hedging Agreements being unwound in accordance with <u>Section 8.04(d)(iv)</u>, and the concurrent payment of any amounts senior to such principal payments in accordance with the Priority of Payments or the establishment of appropriate reserves therefor as provided for in <u>Section 2.07(a)</u>), the payment of any related fees contemplated in the Lender Fee Letter and the BNY Fee Schedule, and the satisfaction of any other applicable conditions precedent to such Permitted Release as specified by the Required 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)a written confirmation from the Administrative Agent (at the written direction of the Required Lenders) that such Permitted Release is effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Release Proceeds, together with other amounts available to the Loan Parties and permitted to be released hereunder will be at least equal to the Minimum Release Price; 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;(vii)prior to, or concurrently with, the Permitted Release, the Borrowers shall, unless otherwise agreed with the relevant Hedge Counterparties, amend, terminate or otherwise modify (which need not be on a *pro rata* basis) the Hedging Agreements, or any of them, to effect a reduction in the aggregate notional amount under all such Hedging Agreements in an amount commensurate to the reduction in the Funded Facility Amount following any prepayment required to be made in connection with such Permitted Release under <u>Section 2.07(d)</u> (subject to any permitted excess hedging provisions under the terms of the applicable Hedging Agreements).

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&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)Each Permitted Release contemplated by <u>Section 8.04(a)(v)</u> shall be subject to such conditions as the Required Lenders may specify in writing.

&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 any Permitted Securitization or other Permitted Release of the Equity Interests of any Borrower and/or any Subsidiary Guarantor, upon the effectiveness of such Permitted Release and related transfer, such Loan Party shall cease to be a "Subsidiary Guarantor", a "Guarantor" and/or a "Borrower", as applicable, hereunder and shall accordingly (A) cease to have any rights under the Facility Documents in such capacities (and its signature in such capacity shall not be required for any subsequent amendment hereto or any other Facility Documents to which the Borrowers are party), and (B) be released from all Obligations owed to the Secured Parties and all other obligations under this Agreement, the Lender Fee Letter, the BNY Fee Schedule and the Management Agreement. Notwithstanding the foregoing, in the case of any such Permitted Release not involving a Permitted Securitization or in the case of any Permitted Release of the Equity Interests in the last remaining Loan Party, the Agents and the Required Lenders may require, as a condition to the effectiveness of such Permitted Release, that such Subsidiary Guarantor remain liable (conditionally or otherwise) for any remaining Obligations or any other obligations 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;(f)In connection with any Permitted Release, the Collateral Agent (as directed in writing by the Required Lenders) is hereby irrevocably authorized by each other Secured Party to execute such documents as shall be reasonably requested by the Borrowers to evidence the release of the Lien of the Collateral Agent in the applicable 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;(g)Notwithstanding anything to the contrary herein or in any other Facility Document, except with respect to continuation statements for the purpose of maintaining the Collateral Agent's perfected security interest in the Collateral, no Borrower shall file, or permit or consent to any other Person filing, any terminations or amendments to any UCC financing statements (or any other filing, recording or other instrument for the purpose of perfecting the Collateral Agent's security interest in any Collateral (for the benefit of the Secured Parties)), or any of the foregoing in favor of any Person other than the Collateral Agent, in each case without the prior written consent of the Collateral Agent (acting at the written direction of the Required Lenders).

**Article IX<br>APPLICATION OF MONIES**

**Section 9.01<u>Priority of Payments</u>**. On each Payment Date, the Borrowers (and the Manager on their behalf) shall cause all Distributable Cash in respect of such Payment Date to be applied in accordance with the following priorities (the "<u>Priority of Payments</u>") and the related Periodic Report:

&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>, to the extent any reserves have been established in respect of such Payment Date for the payment of Obligations payable under and pursuant to <u>Section 2.11(a)</u>, <u>2.12</u>, <u>11.03(d)</u> or <u>11.04</u>, to the payment of such Obligations, on a pro rata basis based on the aggregate amount of such Obligations owed to each applicable Secured Party, until such Obligations have been paid in full in cash or such reserves have been exhausted;

&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>, (i) <u>first</u>, to any Approved Account Bank, any amounts then due and payable to such Approved Account Bank that are not subordinated to the Obligations under the terms of the related Account Control Agreement (including, for the avoidance of doubt, any indemnification amounts), then (ii) <u>next</u>, to the Administrative Agent and the Collateral Agent, in respect of any fees due and payable to it pursuant to the BNY Fee Schedule, together with any expense reimbursement, indemnification payments or other amounts then owed to it hereunder or

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under any Facility Document, in an amount not to exceed $150,000 in the aggregate in any calendar year; <u>provided</u> that such limit shall not be applicable during the occurrence and continuation of an Event of Default or upon any final payment, then (iii) <u>next</u>, to the Manager, any accrued and unpaid Management Fees then due and payable pursuant to the Management Agreement then (iv) <u>next</u>, to the Manager, any reimbursement of expenses due to the Manager pursuant to the Management Agreement in an amount not to exceed $200,000 in any calendar year;

&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)<u>third</u>, on a *pro rata* basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>third</u>, (i) to the Administrative Agent for distribution to each Lender to pay (A) accrued and unpaid Interest on the Advances, (B) amounts payable to each such Lender or the Administrative Agent under <u>Section 2.11(a)</u>, <u>2.12</u>, <u>11.03(d)</u> and <u>11.04</u>, in each case, to the extent not previously paid pursuant to the Priority of Payments (including pursuant to <u>clause</u> <u>first</u> above) and (C) accrued and unpaid Undrawn Fees, and (ii) to each Secured Hedge Counterparty under each Hedging Agreement with such Secured Hedge Counterparty, the payment of all amounts which are due and payable under such Hedging Agreement on such date (other than fees, expenses, termination payments, indemnification payments, tax payments, collateral postings or other similar 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;(d)<u>fourth</u>, if the Final Maturity Date has occurred or an Event of Default has occurred and is continuing, to pay, on a pro rata basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>fourth</u>, (i) to the Administrative Agent for distribution to each Lender on a pro rata basis based on outstanding principal amount, to pay the outstanding principal of the Advances until paid in full in cash and (ii) to each Secured Hedge Counterparty under each Hedging Agreement with such Secured Hedge Counterparty, all amounts due and payable under such Hedging Agreement (including breakage and termination payments, but excluding amounts described in <u>clause</u> <u>third</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;(e)<u>fifth</u>, to the Borrower Interest Reserve Account, until the amount on deposit in therein is equal to the Interest 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;(f)<u>sixth</u>, (i) to the Administrative Agent for distribution to each Lender on a pro rata basis based on outstanding principal amount, to pay the outstanding principal of the Advances of each Lender (including to the extent applicable, any Mandatory Prepayment Amounts payable in connection with a Permitted Release) in connection with any Optional Prepayment occurring on such Payment Date and (ii) to each Secured Hedge Counterparty under each Hedging Agreement with such Secured Hedge Counterparty, all amounts due and payable under such Hedging Agreement (including breakage and termination payments, but excluding amounts described in <u>clause</u> <u>third</u> above and without duplication of amounts paid in <u>clause</u> <u>fourth</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;(g)<u>seventh</u>, to pay all other Obligations of any Borrower owed to any Secured Party under the Facility Documents, on a pro rata basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>seventh</u>, including, without limitation, any and all expense reimbursement, indemnity obligations and other liabilities owed to any Secured Party not previously paid pursuant to the Priority of Payments (including amounts contemplated in <u>clause</u> <u>third</u> in excess of the cap set forth therein);

&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)<u>eighth</u>, to pay all other liabilities of any Borrower under the Facility Documents, on a pro rata basis based on the aggregate amounts owed to each such Person under this <u>clause</u> <u>eighth</u>, including, without limitation, any and all expense reimbursement, indemnity obligations and other liabilities not previously paid pursuant to the Priority of Payments (including amounts contemplated in <u>clause</u> <u>second</u> in excess of the cap set forth therein, and to the extent otherwise unpaid, any amounts then due and payable under any Collateral Document,

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whether or not such amounts are required to be reserved for in a Borrower Liability 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;(i)<u>ninth</u>, to reserve, by making a deposit to one or more Borrower Accounts, for any other liabilities of any Borrower under the Collateral Documents or the other Facility Documents that are, or reasonably may become (as determined by the Manager in accordance with the Management Standard), due and payable prior to the next Payment Date, to the extent applicable reserves then on deposit in the applicable Borrower Accounts are insufficient to pay such liabilities 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;(j)<u>tenth</u>, (i) for so long as no Event of Default has occurred and is continuing, the remainder to be released to the Borrowers pursuant to a Permitted Release and (ii) if an Event of Default has occurred and is continuing, the remainder to remain on deposit in the Borrower Payment Account.

All of the foregoing amounts due and payable to a Committed Lender that has a related Conduit Lender or to such Conduit Lender shall be made to such Lenders' Managing Agent for the account of such Lenders.

**Section 9.02<u>Withdrawals from Interest Reserve</u>**. On each Payment Date, after application of the Priority of Payments, (a) if there remains any Interest due on the Advances that remain unpaid, an amount equal to such shortfall (or if less, all amounts then on deposit in the Borrower Interest Reserve Account) shall be withdrawn from the Borrower Interest Reserve Account and applied to make such Interest payments, and to the extent the amounts on the Borrower Interest Reserve Account are insufficient to make such Interest payments, withdrawn and applied from any Cure Contribution Holding Account holding DSCR Cure Contributions or LTV Cure Contributions, until such Interest payments have been paid in full in cash, and (b) if the amount on deposit in the Borrower Interest Reserve Account is in excess of the Interest Reserve Required Amount (as determined for the following Payment Date after giving effect to the application of the Priority of Payments on such Payment Date), at the request of the Borrowers, an amount equal to such excess may be withdrawn from the Borrower Interest Reserve Account and transferred to the Borrower Payment Account (without increasing Collections or Net Cash Flow), and applied as Distributable Cash in accordance with the Priority of Payments on the following Payment Date (or to the extent consented to by the Required Lenders, the same Payment Date).

**Section 9.03<u>Excepted Earn-out Liabilities</u>.** With respect to any Excepted Earn-out Liabilities agreed between the Borrowers and the sellers under any Asset Transfer Agreement, the Borrowers shall, pursuant to <u>Section 9.01(j),</u> reserve for such Excepted Earn-out Liabilities out of Collections on the Payment Date preceding the date on which such Excepted Earn-out Liabilities are, or reasonably may become (as determined by the Manager in accordance with the Management Standard) a liability of the Borrowers due and owing following such Payment Date. Such amounts shall be reserved in the Borrower Liability Reserve Account. Without limiting the foregoing, the Borrowers may fund any Excepted Earn-Out Liabilities from (x) Permitted Releases or (y) capital contributions up to an aggregate amount not to exceed 10% of the maximum aggregate Commitment Amount during the term of this Agreement, as such aggregate Commitment Amount may be increased pursuant to <u>Section 2.19</u>.

**Section 9.04<u>Hedging Unwind Payments</u>.** In the event that a Loan Party becomes obligated to make a breakage or termination payment to a Secured Hedge Counterparty upon the unwind or termination of a Hedging Agreement (or any trade thereunder) on any date other than a Payment Date (any such date, a "<u>Hedge Unwind Date</u>"), then such Loan Party shall be permitted to make (or to direct the applicable Approved Account Bank, as applicable, to make)

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such payment out of Distributable Cash out of the Borrower Payment Account on such Hedge Unwind Date upon delivery by such Loan Party (or the Manager on its behalf) of a certificate to the Lenders (with a copy to the Administrative Agent) confirming that (i) no Manager Termination Event, Unmatured Event of Default or Event of Default has occurred and is continuing as of such Hedge Unwind Date or would result from such payment and (ii) after giving effect to such payment, such Loan Party (or the Manager on its behalf) reasonably expects sufficient Distributable Cash to be available to make payment of the obligations set forth in <u>clauses (a)</u> through <u>(e)</u> of the Priority of Payments on the Payment Date immediately following such Hedge Unwind Date.

**Article X<br>THE AGENTS**

**Section 10.01<u>Authorization and Action</u>**. (a) Each Lender hereby irrevocably appoints and authorizes each Agent to take such action as are expressly set forth herein as agent on its behalf and to exercise its respective powers under this Agreement and, to the extent applicable, the other Facility Documents to which such Agent is a party, 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. In addition, each Secured Party hereby appoints the Collateral Agent to act as its agent and representative for purposes of perfecting a security interest in the Collateral for the benefit of the Secured Parties (including to act as the representative "secured party" and "secured party of record" for purposes of the UCC) and to take such actions in connection therewith as expressly provided for herein or in the other Facility Documents to which it is a party or as directed in writing by the Required Lenders. 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 any Agent shall be read into this Agreement or any other Facility Document 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 and 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 reasonable written instructions, subject to <u>Section 10.03(b)(xi)</u>, of the Required Lenders; <u>provided</u> that no Agent shall 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 written instructions (or, by refusing to provide instruction) to the Administrative Agent withhold its consent or exercise its discretion in an unreasonable manner. For the avoidance of doubt, the Administrative Agent shall have no obligation to provide consent or exercise discretion in the absence of such written instructions, and shall incur no liability to any Lender or any other Person in not providing such consent or using such discretion.

&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;&nbsp;&nbsp;&nbsp;&nbsp;In furtherance of the foregoing, so long as The Bank of New York Mellon is the Administrative Agent or the Collateral Agent, whenever reference is made in this Agreement or the other Facility Documents to any discretionary 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 either the

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Administrative Agent or 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 either the Administrative Agent or the Collateral Agent, it is understood that the Administrative Agent or the Collateral Agent shall be acting solely at the written direction of the number or percentage of Lenders as shall be expressly provided for herein or in the other Facility Documents, and in the absence of such specification, by the Required Lenders or the Lead Borrower, as applicable, and shall be fully protected in acting pursuant to such directions; provided, however, if either Agent receives conflicting instructions from the Required Lenders and the Lead Borrower prior to taking such action, the instructions of the Required Lenders shall control. Notwithstanding anything contained in this Agreement or the other Facility Documents to the contrary, without limiting any rights, protections, immunities or indemnities afforded to the Administrative Agent hereunder (including without limitation this Article X), phrases such as "satisfactory to the Administrative Agent," "approved by the Administrative Agent," "acceptable to the Administrative Agent," "as determined by the Administrative Agent," "designed by the Administrative Agent", "specified by the Administrative Agent", "in the Administrative Agent's discretion," "selected by the Administrative Agent," "elected by the Administrative Agent," "requested by the Administrative Agent," "in the opinion of the Administrative Agent," "required by the Administrative Agent", "as the Administrative Agent deems necessary or advisable" and phrases of similar import that authorize or permit the Administrative Agent to approve, disapprove, determine, act, evaluate or decline to act in its discretion shall be subject to the Administrative Agent receiving a direction from the Required Lenders (or such other number or percentage of the Lenders as shall be expressly provided for herein or in the other Facility Documents).

**Section 10.02<u>Delegation of Duties</u>**. 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 acts or omissions of any agents or attorneys-in-fact selected by it with reasonable care.

**Section 10.03<u>Agent Rights; Limitation of Liability</u>**. (a) Neither Agent or 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 as determined by a court of competent jurisdiction by final and non-appealable judgment.

&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)Without limiting the generality of the foregoing, each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)may consult with legal counsel (including counsel for any Borrower, the Manager or any of their Affiliates) and independent public accountants and other experts selected by it, and any advice or opinion received in connection therewith shall be full and complete authorization and protection in respect of any action taken, suffered or omitted to be taken by such Agent in good faith in accordance with such advice or opinion; and no Agent shall be liable for any action taken, suffered or omitted to be taken in good faith by it in accordance with any such advice or opinion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)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

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statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or the other 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)shall not have any duty to monitor, ascertain, investigate or inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement, any Collateral Documents or any other Facility Documents, or any notice, consent, certificate, instruction, waiver, report, statement, opinion, direction, or other instrument, document, writing or communication of any kind or nature (physical, electronic, telephonic, oral or otherwise) on the part of any Borrower, the Manager, any Obligor or any other Person, or as to the existence or possible existence of any Manager Termination Event, Unmatured Event of Default, Event of Default or any other event, or to inspect the property (including the books and records) of any Borrower, the Manager, any Obligor 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)shall not be responsible to any Secured Party or any other Person for the due execution, legality, validity, enforceability, collectability, perfection, genuineness, effectiveness, priority, sufficiency or value of any Collateral, this Agreement, the Collateral Documents, the other Facility Documents or any other instrument or document furnished pursuant hereto or thereto, any recitals, statements, information, representations or warranties regarding the Collateral, any Loan Party, the Manager or any other Person, or the financial or other condition of any such Person, or for the validity, perfection, priority or enforceability of the Liens on the Collateral, and it is expressly acknowledged by each other party hereto that no Agent shall have any duty or obligation whatsoever to (A) file or record any financing statements, Intellectual Property Security Agreements or other instruments to perfect any such Lien, or to see to the continuation or maintenance thereof, (B) see to any insurance or (C) see to the payment or discharge of any Tax, assessment, governmental charge or any other Lien of any kind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall incur no liability under or in respect of this Agreement or any other Facility Document by relying on, acting upon (or by refraining from action in reliance on) any notice, consent, certificate (including for the avoidance of doubt, any Periodic Report), instruction or waiver, report, statement, opinion, direction or other instrument or writing (which may be delivered by email) believed by it to be genuine and believed by it to be signed or sent by the proper party or 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;(vi)shall have no liability to any Borrower or any Lender or any other Person for any Borrower's, the Manager's, any Obligor'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;&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)shall have no obligation whatsoever to any Person to (A) assure that any Collateral exists or is owned by any Person or is cared for, protected or insured, (B) assure that any Liens have been properly or sufficiently or lawfully created, perfected, protected, maintained or enforced or are entitled to any particular priority, (C) exercise (at all) or to continue exercising (if commenced), in any manner or under any duty of care, disclosure or fidelity any of the rights, authorities or powers granted or available with respect thereto or (D) commence, prosecute or defend legal proceedings in any instance, whether on behalf of the Borrowers or on its own behalf or otherwise, with respect to any matter arising hereunder or relating to this Agreement or any services or activities contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall not be liable for the actions or omissions of any other agent (including without limitation any other Agent, and whether concerning the application of

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funds or any other matter), or under any duty to monitor or investigate compliance on the part of any such other agent with the terms or requirements of this Agreement, any Collateral Documents, any other Facility Documents, or their duties 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;(ix)shall be entitled to assume the due authority of any signatory and genuineness of any signature appearing on any resolution, certificate, statement, opinion, report, notice, request, direction, consent, order or other instrument or document it may receive (including without limitation each Joinder Agreement, Notice of Borrowing and Release Request received hereunder), shall have no duty to inquire into or investigate the authenticity or authorization of any such signature (whether manual, electronic or otherwise) and shall be entitled to conclusively rely on any such signature without any liability with respect thereto, and shall be fully protected in acting or refraining from acting in reliance thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) shall not be liable for any action taken in good faith and reasonably believed by it to be within the powers conferred upon it, or taken by it pursuant to any direction or instruction by which it is governed, or omitted to be taken by it by reason of the lack of direction or instruction required hereby for such action (including 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);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall in no event be obligated to advance, expend or risk its own funds, or to take any action which in its reasonable judgment may cause it to incur any expense or financial or other liability for which it is not indemnified to its reasonable satisfaction, and if requested or directed by the Required Lenders to take any action pursuant to any provision of this Agreement or any other Facility Document, shall be under no obligation to exercise any of its rights, authorities or powers in the manner so requested or directed unless it shall have been provided indemnity or security reasonably satisfactory to it against the costs, expenses and liabilities which may be incurred by it in performing or otherwise complying with such request or direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall have no duty or obligation to take any action to exercise or enforce any of its rights, authorities or powers, including exercising any remedies against the Collateral (whether or not an Event of Default has occurred and is continuing) unless and until directed in writing (and provided with any applicable indemnity) by the Required 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)shall have no liability to any Loan Party, the Manager, any Secured Party, any of their respective Affiliates or any other Person for any exercise of remedies or any other action taken, suffered or omitted to be taken at the direction of the Required Lenders, whether or not the applicable directing Person was then authorized or entitled to give such direction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall not be deemed to have notice or knowledge (constructive or otherwise) of any fact, claim, demand, event or other matter relating to this Agreement or any other Facility Document (including without limitation the occurrence or continuation of any Manager Termination Event, Unmatured Event of Default or Event of Default) unless (and then only to the extent) received in writing by a Responsible Officer of the Administrative Agent or the Collateral Agent, as applicable, and specifically referencing this Agreement and the fact, claim, demand, event or other matter with respect to which such notice is being given, and shall not be charged with notice or knowledge (constructive or otherwise) of any such fact, claim, demand, event or other matter by

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reason of the fact that the same could be discerned from the contents of any notices, reports or other instruments or documents prepared by any Person, whether or not received by the applicable Agent, except to the extent such fact, claim, demand, event or other matter is so specifically referenced;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)shall not be responsible for or charged with notice or knowledge (constructive or otherwise) of any terms or conditions contained in any Facility Document to which it is not a party, whether or not such Facility Document is referred to in any agreement or instrument entered into, signed or acknowledged by such 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi)shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, opinion, report, notice, request, direction, consent, order or other instrument or document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii)shall not be liable for any indirect, special, punitive or consequential damages (included but not limited to lost profits) whatsoever, even if it has been informed of the likelihood thereof and regardless of the form of action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) 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 as shall be determined by a court of competent jurisdiction by final and non-appealable judgment that it was grossly negligent in ascertaining the relevant facts; 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;(xix)shall not be responsible or liable for delays or failures in performance resulting from acts beyond its control, including but not limited to: acts of God, strikes, work stoppages, accidents, lockouts, riots, acts of war, terrorism, disease, epidemics, pandemics, quarantines, national emergencies, nationalization, civil or military disturbances, expropriation, fire, failures or interruptions of communications, computer (software or hardware) or other equipment, facilities or utilities, governmental regulations imposed, adopted or implemented after the fact, other acts of government, computer viruses, power failures, earthquakes, nuclear or natural catastrophes or other disasters.

&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 permissive or discretionary right, authority or power conferred to any Agent or otherwise available to it shall be construed to impose on such Agent any duty to exercise the same or any other duty or obligation whatsoever.

&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)Subject to the express terms of this Agreement and each applicable Facility Document to which the applicable Agent is a party, whenever an Agent is entitled to or required to obtain any notice, information or other communication pursuant to or as contemplated by this Agreement or the other Facility Documents, it shall be entitled to receive the same in such form, format and medium reasonably acceptable to it, and whenever any such notice, information or other communication is required to be forwarded, delivered or otherwise made available by an Agent to any other Person, it shall be entitled to make the same available in such form, format and medium reasonably acceptable to it, and otherwise in accordance with any applicable term 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;(d)Whether or not expressly stated in such Facility Document, each Agent, in its capacity as such under or in connection with any other Facility Document, shall be entitled to all rights, benefits, protections, limitations of liability and indemnification as provided for herein.

&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 event any dispute or disagreement arises as to the allocation of any Collections or any other Collateral, as applied pursuant to the Priority of Payments or otherwise,

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the Agents shall have the right to deliver such property to a court of competent jurisdiction and therein commence an action for interpleader.

&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)Each Lender acknowledges that no Agent has made any representation or warranty to it, and that no act by either Agent hereafter taken, including any consent and acceptance of any Assignment and Acceptance or review of the affairs of the Borrowers, shall be deemed to constitute any representation or warranty by such Agent to any such Lender 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, and investigation into, the Collateral, the Borrowers, the Manager and all other matters relevant to its decision to make Advances hereunder, 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 either 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 Collateral, the Borrowers, the Manager and all other matters relevant to its decision to make Advances hereunder. No Agent shall have any duty or responsibility to provide any Lender with any such information, whether or not such information is in the possession of such 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;(g)In addition, with respect to each 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)No Agent shall have any obligation to make any calculations (including, without limitation, in respect of Interest, LTV Ratios, DSCR, Maximum LTV Ratios, Specific Maximum LTV Ratios, Aggregate Collateral Values (or any of the components thereof), Commitment Amount, or Net Cash Flow) contemplated hereunder or under any other Facility Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Notwithstanding anything expressed or implied to the contrary herein or in any other Facility Document, neither Agent shall be obligated to take any action or make any determination in respect of the Collateral, this Agreement or the other Facility Documents, whether or not any discretionary rights, authorities or powers have been granted or made available to it, and in each case, may require and shall be entitled to receive the direction of the Required Lenders as a condition to taking any such action or making any such determination (including any determination not to act), and shall not be liable to any Person for acting solely in accordance with such direction or refraining or refusing to take any action or make any determination in the absence of such direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)In the event an Agent is required to decide between two alternative courses of action or is otherwise required to make any determination in its capacity as Collateral Agent or Administrative Agent, as applicable, hereunder, it shall be entitled to request written direction from the Required Lenders as to the course of action desired by it. If such Agent does not receive such direction within five (5) Business Days of such request, the applicable Agent may, but shall be under no duty or obligation to, take or refraining from taking any such courses of action. In the event the applicable Agent receives direction after such five (5) Business Day period, such Agent shall act in accordance with such instructions except to the extent that it has already taken, or committed to take, any action contrary to such direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Agent is hereby authorized and directed to execute and deliver on the date hereof, or upon written direction from the Required Lenders, on any subsequent date, to the extent such Agent is a party, (A) each Account Control Agreement relating to the Borrower Accounts, (B) each Intellectual Property Security

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Agreement relating to any Intellectual Property from time to time owned or acquired by the Borrowers, and (C) each Joinder Agreement, Release Request and each other Collateral Document or other Facility Document from time to time directed by the Required Lenders. The Borrowers and the Secured Parties hereby further acknowledge and consent to the execution and delivery by the Collateral Agent of each Account Collateral 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Without limiting any of the other protections in favor of the Agents set forth herein and for the avoidance of doubt, delivery of reports, notices, information, certificates and other documents to either Agent is for informational or custodial purposes only and such Agent's receipt of such reports, information, certificates or other documents shall not constitute constructive notice to such Agent of any information contained therein or determinable from information contained therein, including any Person's compliance with any of its covenants hereunder or 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Neither Agent shall be relieved from liability for its own gross negligence, bad faith or willful misconduct; <u>provided</u>, <u>however</u>, (A) the Agents shall not be liable for any error of judgment made or action taken in good faith by a Responsible Officer of such Agent unless it is proved that the applicable Agent was grossly negligent or engaged in willful misconduct or acted with bad faith in ascertaining the pertinent facts; (B) neither Agent shall be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to this Agreement; (C) neither Agent shall be liable for the actions, omissions, default or misconduct of any other party hereto, or of any other Person in connection with this Agreement or otherwise and may assume that such Persons have performed their obligations under this Agreement absent written notice received by a Responsible Officer of such Agent to the contrary; (D) if any error, inaccuracy or omission (collectively "<u>Errors</u>") exists in any information provided to either Agent by any party, and such Errors cause or materially contribute to such Agent making or continuing any Error (collectively "<u>Continuing Errors</u>"), the related Agent shall have no liability for such Continuing Errors; and (E) neither Agent shall be liable for any action or inaction taken or omitted to be taken in good faith in accordance with a direction received by it pursuant to this Agreement, or any failure to perform its duties if such failure is a direct or proximate result of another party's failure to perform its obligations hereunder.

**Section 10.04<u>Indemnification</u>**. Each of the Lenders agrees to indemnify and hold each Agent harmless (to the extent not reimbursed by or on behalf of the Borrowers pursuant to <u>Section 11.04</u> or otherwise) from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses (including reasonable and documented attorneys' fees and expenses) or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against such Agent in any way relating to or arising out of this Agreement or any other Facility Document or any action taken or omitted by such Agent under this Agreement or any other Facility Document; <u>provided</u> that no Lender shall be liable to any Agent for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Agent's gross negligence or willful misconduct as determined by a court of competent jurisdiction by final and non-appealable judgment. This Section shall not apply with respect to Taxes other than any Taxes that represent losses, claims or damages, arising from any non-Tax claim. The rights of each Agent and obligations of the Lenders under or pursuant to this <u>Section 10.04</u> shall survive the termination of this Agreement, and the earlier removal or resignation of such Agent hereunder.

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**Section 10.05<u>Successor Agents</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)Subject to the appointment of a successor Administrative Agent in accordance with this Section <u>10.05</u>, the Administrative Agent may resign as Administrative Agent in the Administrative Agent's sole discretion at any time upon thirty (30) days' notice to the Lenders, the Collateral Agent and the Borrowers. If the Administrative Agent shall resign then the Required Lenders shall appoint a successor agent. If for any reason a successor agent is not so appointed and does not accept such appointment within thirty (30) days of notice of resignation the Administrative Agent may appoint a successor agent or petition a court to appoint a successor agent, at the expense of Borrowers. The appointment of any successor Administrative Agent shall be subject to the prior written consent of the Borrowers (which consent shall not be unreasonably withheld, conditioned or delayed); <u>provided</u> that the consent of the Borrowers to any such appointment shall not be required if (i) an Event of Default shall have occurred and is continuing or (ii) if such successor Administrative Agent is a Lender or an Affiliate of such Administrative Agent or any Lender.

&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)Subject to the appointment of a successor Collateral Agent in accordance with this <u>Section 10.05</u>, the Collateral Agent may resign as Collateral Agent in the Collateral Agent's sole discretion at any time upon thirty (30) days' notice to the Lenders, the Collateral Agent and the Borrowers, and may be removed by the Required Lenders upon thirty (30) days' notice to the Collateral Agent, the Borrowers, the Administrative Agent and the Lenders. In the event of any such resignation or removal, the Required Lenders shall appoint a successor agent. The appointment of any successor Collateral Agent shall be subject to the prior written consent of the Borrowers (which consent shall not be unreasonably withheld, conditioned or delayed) and the consent of the Required Lenders (which consent shall not be unreasonably withheld, conditioned or delayed); <u>provided</u> that the consent of the Borrowers to any such appointment shall not be required if (i) an Event of Default shall have occurred and is continuing or (ii) if such successor Collateral Agent is a Lender or an Affiliate of 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;(c)Any resignation or removal of any Agent shall be effective upon the appointment of a successor agent pursuant to this <u>Section 10.05</u>. After the effectiveness of the outgoing Agent's resignation or removal hereunder as an Agent, such outgoing Agent shall be discharged from its duties and obligations hereunder and under the other Facility Documents and the provisions of this <u>Article X</u> shall continue in effect for its benefit with respect to any actions taken or omitted to be taken by it while it was an Agent under this Agreement and under the other 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;(d)Any Person (i) into which an Agent may be merged or consolidated, (ii) that may result from any merger or consolidation to which such Agent shall be a party, or (iii) that may succeed to the properties and assets of an Agent substantially as a whole, shall be the successor to such Agent under this Agreement and the other Facility Documents without further act of any of the parties to this Agreement.

**Section 10.06<u>[Reserved]</u>**.

**Section 10.07<u>Erroneous Payments</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)If the Administrative Agent notifies a Lender or another Secured Party, or any Person who has received funds on behalf of a Lender, another Secured Party or any other Person (any such Lender, Secured Party or other recipient, a "<u>Payment Recipient</u>") that the Administrative Agent has received written notice from another Secured Party that any funds received by such Payment Recipient were erroneously or mistakenly 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

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transmitted or received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise, individually and collectively, an "<u>Erroneous Payment</u>") and demands in writing the return of such Erroneous Payment (or a portion thereof), such Erroneous Payment shall at all times remain the property of the related Secured Party and shall be segregated by the Payment Recipient and held in trust for the benefit of the related Secured Party, 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 (2) Business Days thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds (in the currency so received), together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent in same day funds at the same interest rate the Borrowers were required to pay interest hereunder during such period. A notice of the Administrative Agent to any Payment Recipient under this <u>Section 10.07(a)</u> shall be conclusive, absent manifest error.

&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)Without limiting the immediately preceding clause (a), each Payment Recipient 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) in respect of the Advances or the Obligations or otherwise with respect to this Agreement or the other Facility Documents (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment or applicable Periodic Report applicable to such payment, prepayment or repayment, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment or applicable Periodic Report delivered hereunder, or (z) that such Lender, Secured Party, or other such recipient, otherwise becomes aware was transmitted, or received, in error or by mistake (in whole or in part):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in the case of immediately preceding clauses (x) or (y), an error and mistake shall be presumed to have been made (absent written confirmation from the Administrative Agent (acting at the written direction of the Required Lenders) to the contrary) or (B) an error and mistake has been made (in the case of immediately preceding clause (z)), 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)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 (1) Business Day of its knowledge of such error) notify the Administrative Agent (in writing) of its receipt of such payment, prepayment or repayment, the details thereof (in reasonable detail) and that it is so notifying the Administrative Agent pursuant to this <u>Section 10.07(b)</u>.

(iii)For the avoidance of doubt, the failure to deliver a notice to the Administrative Agent pursuant to this <u>Section 10.07(b)</u> shall not have any effect on a Payment Recipient's obligations pursuant to <u>Section 10.07(a)</u> or on whether or not an Erroneous Payment has been 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;(c)Each Lender and other Secured Party hereby authorizes the Administrative Agent and the Collateral Agent, in each case, at the direction of the Required Lenders, 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 such Agent to such Lender or Secured Party from any source, against any amount due to such Agent under immediately preceding <u>Sections 10.07(a)</u> and <u>(b)</u> or under the indemnification provisions of this Agreement.

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&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 parties hereto agree that (x) irrespective of whether the Administrative Agent may be equitably subrogated, in the event that an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Agents shall be subrogated to all the rights and interests of such Payment Recipient (and, in the case of any Payment Recipient who has received funds on behalf of a Lender, to the rights and interests of such Lender) under the Facility Documents with respect to such amount (the "<u>Erroneous Payment Subrogation Rights</u>") and (y) an Erroneous Payment shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrowers; <u>provided</u> that this <u>Section 10.07(d)</u> shall not be interpreted to increase (or accelerate the due date for), or have the effect of increasing (or accelerating the due date for), the Obligations of the Borrowers relative to the amount (and/or timing for payment) of the Obligations that would have been payable had such Erroneous Payment not been made by such Agent; <u>provided</u>, <u>further</u>, that for the avoidance of doubt, immediately preceding clauses (x) and (y) shall not apply to the extent any such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by an Agent from, or on behalf of (including through the exercise of remedies under any Facility Document), the Borrowers for the purpose of a payment on the 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;(e)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 any 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Each party's obligations, agreements and waivers under this <u>Section 10.07</u> shall survive the resignation or replacement of any 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 10.08<u>Electronic Communications</u>**. Each Agent hereby agrees to accept and act upon instructions or directions pursuant to this Agreement and the other Facility Documents sent by unsecured e-mail (or .pdf files of executed documents), or other similar unsecured electronic methods, provided that any person providing such instructions or directions shall provide to such Agent an incumbency certificate listing such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If any party hereto elects to give an Agent e-mail instructions (or .pdf files of executed documents or other instructions by a similar electronic method), such Agent's understanding of such instructions actually received by such Agent shall be deemed controlling in the event that such instructions are ambiguous; <u>provided</u> that prior to acting in response to any such instructions that it deems to be ambiguous, such Agent shall use commercially reasonable efforts to contact the instructing party and obtain from such instructing party any necessary clarifications with respect to such instructions. Each of the other parties hereto understands and agrees that neither of the Agents can determine the identity of the actual sender of such instructions and that each Agent shall conclusively presume that directions that purport to have been sent by an officer listed on the incumbency certificate provided to it have been sent by such officer. The other parties hereto shall be responsible for ensuring that only authorized officers transmit such instructions to the Agents and that each such party is solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by it. Neither of the Agents shall be liable for any losses, costs or expenses arising directly or indirectly from such Agent's reasonable, good faith reliance upon and compliance with such instructions, notwithstanding that such directions conflict with or are inconsistent with a subsequent written instruction, subject to the duty of care applicable to such Person acting in such capacity. Each of the other parties hereto agrees (i) to assume all risks arising out of its respective use of such electronic methods to submit instructions and

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directions to either of the Agents, including without limitation the risk of either of the Agents acting on unauthorized instructions, and the risk of interception and misuse by third parties, (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting instructions to the Agents and that there may be more secure methods of transmitting instructions than the method(s) selected by it, (iii) that the security procedures (if any) to be followed in connection with its transmission of instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances and (iv) to notify the Agents immediately upon learning of any compromise or unauthorized use of the security procedures.

**Section 10.09<u>Managing Agents</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)<u>Authorization and Action</u>. Each Conduit Lender and its related Committed Lender hereby appoints and authorizes its Managing Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Facility Documents as are delegated to such Managing Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. No Managing Agent shall have any duties other than those expressly set forth in the Facility Documents, and no implied obligations or liabilities shall be read into any Facility Document, or otherwise exist, against any Managing Agent. No Managing Agent assumes, nor shall it be deemed to have assumed, any obligation to, or relationship of trust or agency with, any Loan Party. Notwithstanding any provision of this Agreement or any other Facility Document, in no event shall any Managing Agent ever be required to take any action which exposes such Managing Agent to personal liability or which is contrary to any provision of any Facility Document or applicable law. Unless notified in writing to the contrary by the applicable Committed Lender, Agents and the Loan Parties shall provide all notices and payments specified to be made by to a Conduit Lender or a related Committed Lender hereunder to the related Managing Agent, if any, for the benefit of such Lenders. Each Managing Agent may perform any of the obligations of, or exercise any of the rights of, any related Lender and such performance or exercise shall constitute performance of the obligations of, or exercise of the rights of, such Lenders hereunder. In performing its functions and duties hereunder and under the other Facility Documents, each Managing Agent shall act solely as agent for its related Lenders and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for any other Lender, Loan Party or any other Person, or any of their respective successors or assigns. Each Lender hereby designates the Managing Agent, if any, to act as its Managing Agent, and such Managing Agent hereby agrees to perform the duties and obligations of, such related 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;(b)<u>Managing Agents' Reliance, Etc</u>. No Managing Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them as a Managing Agent under or in connection with this Agreement or the other Facility Documents (i) with the consent or at the request or direction of its related Committed Lenders or (ii) in the absence of its or their own gross negligence or willful misconduct. Without limiting the generality of the foregoing, a Managing Agent: (a) may (at the cost of such Managing Agent or its related Committed Lender) consult with legal counsel (including counsel for any Loan Party), independent certified 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; (b) makes no warranty or representation to any Lender (whether written or oral) and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with this Agreement or any other Facility Document; (c) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of this Agreement or any other Facility Document on the part of any Loan Party or any other Person or to inspect the property (including the books and records) of any Loan Party; (d) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness,

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sufficiency or value of this Agreement, any other Facility Documents or any other instrument or document furnished pursuant hereto; and (e) shall incur no liability under or in respect of this Agreement or any other Facility Document by acting upon any notice (including notice by telephone), consent, certificate or other instrument or writing (which may be by e-mail, telecopier or other electronic communication) believed by it to be genuine and signed or sent by the proper party or 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;(c)<u>Managing Agent and Affiliates</u>. With respect to any Advances by its related Lenders, each Managing Agent shall have the same rights and powers under this Agreement as any Committed Lender and may exercise the same as though it were not a Managing Agent; provided that no such exercise of rights and powers shall release such Managing Agent from any of its obligations hereunder, or substitute any Committed Lender for such Managing Agent as a party hereto. Each Managing Agent and any of its Affiliates may generally engage in any kind of business with the Loan Parties, any of their respective Affiliates and any Person who may do business with or own securities of any Loan Party or any of their respective Affiliates, all as if such Managing Agent were not a Managing Agent and without any duty to account therefor to any Conduit Lenders or Committed 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;(d)<u>Indemnification of Managing Agents</u>. Each Committed Lender agrees to indemnify its Managing Agent (to the extent not otherwise reimbursed by a Loan Party), ratably according to the proportion of the percentage of such Committed Lender to the aggregate percentages of all related Committed Lenders, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by, or asserted against such Managing Agent in any way relating to or arising out of this Agreement or any other Facility Document or any action taken or omitted by such Managing Agent provided that no Committed Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such Managing Agent's gross negligence or willful misconduct.

&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)<u>Delegation of Duties</u>. Each Managing Agent may execute any of its duties through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Managing Agent shall be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

&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)<u>Action or Inaction by Managing Agent</u>. Each Managing Agent shall in all cases be fully justified in failing or refusing to take action under any Facility Document unless it shall first receive such advice or concurrence of its related Lenders and assurance of its indemnification by its related Lenders, as it deems appropriate. Each Managing Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Facility Document in accordance with a request or at the direction of its related Lenders, and such request or direction and any action taken or failure to act pursuant thereto shall be binding upon all related 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;(g)<u>Notice of Events of Termination</u>. No Managing Agent shall be deemed to have knowledge or notice of the occurrence of any Unmatured Event of Default or Event of Default unless such Managing Agent has received notice from the Administrative Agent, any other Managing Agent, any Lender, or any Loan Party stating that an Unmatured Event of Default or Event of Default has occurred hereunder and describing such Unmatured Event of Default or Event of Default. If a Managing Agent receives such a notice, it shall promptly give notice thereof to its related Lenders. The Managing Agent shall take such action concerning an Unmatured Event of Default or Event of Default as may be directed by its related Lenders, but until such Managing Agent receives such directions, such Managing Agent may (but shall not be

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obligated to) take such action, or refrain from taking such action, as such Managing Agent deems advisable and in the best interests of its related 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;(h)<u>Non-Reliance on Managing Agent and Other Parties</u>. Except to the extent otherwise agreed to in writing between a Lender and its Managing Agent, each related Lender expressly acknowledges that neither their Managing Agent, any of its Affiliates nor any of such Managing Agent's or Affiliate's directors, officers, agents or employees has made any representations or warranties to it and that no act by such Managing Agent hereafter taken, including any review of the affairs of the Loan Parties, shall be deemed to constitute any representation or warranty by such Managing Agent. Except to the extent otherwise agreed to in writing between a Lender and its Managing Agent, each related Lender represents and warrants to its Managing Agent that, independently and without reliance upon such Managing Agent, any of its Affiliates, any other Managing Agent, the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, it has made and will continue to make its own appraisal of, and investigation into, the business, operations, property, prospects, financial and other conditions and creditworthiness of the Loan Parties and the Collateral Agent and its own decision to enter into this Agreement and to take, or omit, action under this Agreement or any other Facility Document. Except for items expressly required to be delivered under this Agreement or any other Facility Document by a Managing Agent to any related Lender, no Managing Agent shall have any duty or responsibility to provide any related Lender with any information concerning the Loan Parties or any of their Affiliates that comes into the possession of such Managing Agent or any of its directors, officers, agents, employees, attorneys-in-fact or Affiliates.

&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)<u>Reliance on Managing Agent</u>. Unless otherwise advised in writing by a Managing Agent or by any Lender related to such Managing Agent, each party to this Agreement may assume that (i) such Managing Agent is acting for the benefit and on behalf of each of its related Lenders, as well as for the benefit of each assignee or other transferee from any such Person, and (ii) each action taken by such Managing Agent has been duly authorized and approved by all necessary action on the part of its related Lenders.

**Article XI<br>MISCELLANEOUS**

**Section 11.01<u>No Waiver; Modifications in Writing</u>**. (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, and any consent to any departure by any party to this Agreement 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 any Borrower in any case shall entitle any Borrower 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Except as otherwise expressly set forth in this Agreement (including Section 2.17(c) and Section 2.18), no amendment, modification, supplement or waiver of this Agreement shall be effective unless signed by the Borrowers, the Agents and the Required Lenders, <u>provided</u> 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;(i)subject to clause (iii) below, any Fundamental Amendment shall require the written consent of each affected Lender;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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, duties, immunities or liabilities of any Agent or any Approved Account Bank without the prior written consent of such Agent or Approved Account Bank (as applicable); 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)no such amendment, modification, supplement or waiver shall amend, modify or waive this Agreement or any other Facility Document (other than Hedging Agreements) so as to alter the ratable treatment of Obligations arising under a Hedging Agreement relative to Obligations arising under the Facility Documents (other than Hedging Agreements) or the definition of "Secured Party", "Secured Hedge Counterparty", "Hedge Counterparty", "Hedging Agreement", "Facility Documents" or "Obligations" (as such terms, or terms with similar meanings, are defined in this Agreement or any other Facility Document) in each case in a manner adverse to any Secured Hedge Counterparty without the written consent of any such Secured Hedge Counterparty.

&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 connection with the execution of any amendment hereto or to any Facility Document to be executed by either Agent, the Lead Borrower shall deliver an officer's certificate to such Agent, stating that such amendment is authorized or permitted hereunder or under such Facility Document, as applicable, and that all conditions precedent to the execution of such amendment have been complied with.

**Section 11.02<u>Notices, Etc</u>**. Except as otherwise provided herein, all notices and other communications hereunder to any party shall be in writing and sent by certified or registered mail, return receipt requested, by overnight delivery service, with all charges prepaid, by hand delivery, or by e-mail, to (i) in the case of the Agents, the Corporate Trust Office, Attention: Shylock Baloyi, Email: Shylock.Baloyi@bny.com, and (ii) in the case of any other Person, such party's address or e-mail address set forth in <u>Schedule 1</u> or <u>Schedule 2</u> hereto, as applicable, or as set forth in the Joinder Agreement or Assignment and Acceptance pursuant to which it became a party hereto, or at such other address or e-mail address as such party may hereafter specify in a notice given in the manner required under this <u>Section 11.02</u>. All such notices and correspondence shall be deemed given (a) if sent by certified or registered mail, three (3) Business Days after being postmarked, (b) if sent by overnight delivery service or by hand delivery, when received at the above stated addresses or when delivery is refused, (c) if sent by electronic transmission, upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail or other written acknowledgement) and (d) if made available and posted on an internet or intranet website to which each Lender and the Administrative Agent have access (whether a commercial, third-party website (including any website maintained by the SEC) or whether sponsored by the Administrative Agent). Each Borrower hereby irrevocably consents and agrees to the service of any and all legal process, summons, notices and documents out of any courts in any action, suit or proceeding in connection with this Agreement by serving a copy thereof upon such Borrower or by mailing copies thereof by regular or overnight mail, postage prepaid, to such Borrower at its address as specified above.

**Section 11.03<u>Taxes</u>**. (a) For purposes of this <u>Section 11.03</u>, the term "Applicable Law" includes FATCA. 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Any and all payments by or on account of any obligation of any Borrower under this Agreement and any other Facility Document shall be made free and clear of, and without deduction or withholding for, any and all Taxes, except as required by Applicable Law. If the Borrowers shall be required by Applicable Law (as determined in the good faith discretion of the Borrowers) to deduct or withhold any Taxes from, or in respect of, any sum payable by it hereunder or under any other Facility Document to any Secured Party, then the Borrowers shall

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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 Borrowers shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this <u>Section 11.03</u>) such Secured Party receives an amount equal to the sum it would have received had no such deductions or withholding been 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;(b)In addition, the Borrowers agree to timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Required Lenders timely reimburse it for the payment of, any present or future stamp, sales, court or documentary, intangible, recording, filing or similar Taxes or any other excise or property Taxes, charges or similar levies which 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, this Agreement or under any other 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>Sections 2.11(b),</u> <u>11.03(h)</u> or <u>12.01(h)</u>) (such Taxes, hereinafter referred to as "<u>Other Taxes</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;(c)The Borrowers agree to indemnify each of the Secured Parties, by paying (on a Payment Date) or reserving in a Restricted Borrower Account (for payment on the next following Payment Date), within ten (10) days after demand therefor, for the full amount of Indemnified Taxes, including any Indemnified Taxes imposed or asserted by any jurisdiction on amounts payable under this <u>Section 11.03,</u> paid or payable by such Secured Party or required to be withheld or deducted from a payment to such Secured Party and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate describing in reasonable detail the amount of, and basis for asserting, such payment or liability delivered to the Borrowers by a Secured Party shall be conclusive absent manifest error.

&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)As soon as practicable after the date of any payment of Taxes by the Borrowers to a Governmental Authority pursuant to this <u>Section 11.03</u>, the Borrowers will furnish to the Required Lenders the original or a certified copy of a receipt issued by the relevant Governmental Authority evidencing payment thereof (or a copy of the return reporting such payment or other evidence of such payment as may be reasonably satisfactory to the Required 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;(e)If any payment is made by the Borrowers to or for the account of any Secured Party after deduction for or on account of any Taxes, and an indemnity payment or additional amounts are paid by the Borrowers pursuant to this <u>Section 11.03</u>, then, if such Secured Party, in its sole discretion exercised in good faith, determines that it has received a refund of such Taxes, such Secured Party shall reimburse to the Borrowers (without interest) such amount of any refund received (but only to the extent of indemnity payments made under this <u>Section 11.03</u> with respect to the Taxes giving rise to such refund and only net of reasonable out-of-pocket expenses incurred, including Taxes) as such Secured Party shall determine in its sole discretion to be attributable to the relevant Taxes; <u>provided</u> that, in the event that such Secured Party is required to repay such refund to the relevant Governmental Authority, the Borrowers agree to return the refund (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Secured Party. Notwithstanding anything to the contrary in this paragraph (f), in no event will the Secured Party be required to pay any amount to the Borrowers pursuant to this paragraph (f) the payment of which would place the Secured Party in a less favorable net after-Tax position than the Secured Party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or

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otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.

&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)<u>Status of Secured Parties</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)Any Secured Party 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 Borrowers, at the time or times reasonably requested by the Borrowers, such properly completed and executed documentation reasonably requested by the Borrowers as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Secured Party, if reasonably requested by the Borrowers, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrowers as will enable the Borrowers to determine whether or not such Secured Party 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 paragraph (g)(ii)(A), (B) and (D) of this <u>Section 11.03</u>) shall not be required if in the Secured Party's reasonable judgment such completion, execution or submission would subject such Secured Party to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)Each Secured Party that is a U.S. Person hereby agrees that it shall, before the Funding Effective Date or, in the case of a Secured Party which becomes a party hereto pursuant to <u>Section 12.01</u>, before the date upon which such Secured Party becomes a party hereto (and from time to time thereafter upon the reasonable request of the Borrowers), deliver to the Borrowers two copies of accurate, complete and executed IRS Form W-9 or successor form, certifying that such Secured Party is entitled to an exemption from United States backup withholding tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Each Secured Party that is not a U.S. Person (a "<u>Non-U.S. Lender</u>") shall, to the extent it is legally entitled to do so, before the date on which such Secured Party becomes a party hereto pursuant to <u>Section 12.01</u> (and from time to time thereafter upon the reasonable request of the Borrowers), deliver to the Borrowers, 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;&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)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 hereunder or under any other Facility Document, two copies of properly completed and duly executed IRS Form W-8BEN or IRS Form W-8BEN-E (or any subsequent versions thereof or successors thereto) 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 hereunder or under any other Facility Document , two copies of properly completed and duly executed IRS Form W-8BEN or IRS Form W-8BEN-E (or any subsequent versions thereof or successors thereto) establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business"

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profits or "other income" article of such treaty, with respect to any other applicable payments 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;&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)two copies of properly completed and duly executed IRS 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;&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)in the case of a Non-U.S. Lender claiming the benefits of the exemption for portfolio interest under Section 871(h) or 881(c) of the Code, (x) two copies of a certificate substantially in the form of <u>Exhibit G-1</u> hereto 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" (within the meaning of Section 871(h)(3)(B) of the Code) of any Borrower, or a "controlled foreign corporation" related to any Borrower (within the meaning of Section 881(c)(3)(C) of the Code) (a "<u>U.S. Tax Compliance Certificate</u>"), and (y) two copies of properly completed and duly executed IRS Form W-8BEN or IRS Form W-8BEN-E; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)to the extent a Non-U.S. Lender is not the beneficial owner, two copies of properly completed and duly executed IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of <u>Exhibit G-2</u> or <u>Exhibit G-3</u>, IRS Form W-9, or other certification documents from each beneficial owner; <u>provided</u> 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 substantially in the form of <u>Exhibit G-4</u> 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)any Non-U.S. Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower, before the date on which such Non-U.S. Lender becomes a party to this Agreement and before the date, if any, such Non-U.S. Lender designates a new lending office (and, in each case, as promptly as practicable after receipt of a written request therefor from the Borrowers), copies of any other properly completed and duly executed form prescribed by Applicable Law as a basis for claiming exemption from, or a reduction of, U.S. federal withholding Tax, together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrower to determine the withholding or deduction required to be made; 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;(D)if a payment made to a Lender under this Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrowers at the time or times prescribed by law and at such time or times reasonably requested by the Borrowers 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 Borrowers or any Agent as may be necessary for the Borrowers to comply with their obligations under FATCA and to determine that such Lender has complied with such

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Lender's obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this clause (D), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Each Secured Party agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrowers in writing of its legal inability to do so.

&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)On or before the date of this Agreement, to the extent copies thereof have not previously been so delivered, each Approved Account Bank shall deliver to the Lead Borrower, two duly executed copies of either (i) IRS Form W-9 (or any subsequent versions thereof or successors thereto) or (ii) IRS Form W-8IMY (or any subsequent versions thereof or successors thereto) certifying that it is a "U.S. branch" of a foreign bank and evidencing its agreement with the Lead Borrower to be treated as a U.S. Person with respect to payments made to it by any 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;(h)If any Secured Party requires the Borrowers to pay any additional amount to such Secured Party or any Governmental Authority for the account of such Secured Party or to indemnify such Secured Party pursuant to this Section <u>11.03</u>, then such Secured Party shall 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 would eliminate or reduce amounts payable pursuant to this <u>Section 11.03</u> in the future and would not subject such Secured Party to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Secured Party. The Borrowers hereby agree 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Nothing in this <u>Section 11.03</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 Borrowers 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;(j)Each Agent and each Lender hereby agrees to treat the Advances as debt for U.S. federal, state and local income and franchise tax purposes and will take no contrary position except to the extent that a "determination" is made within the meaning of Section 1313(a) of the Code (or an analogous provision of other Law) that the Advances may not be treated as debt for such 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;(k)<u>Survival</u>. Each party's obligations under this <u>Section 11.03</u> shall survive the resignation or replacement of any Agent or any assignment of rights by, or the replacement of, a Lender and the repayment, satisfaction or discharge of all amounts owing under any Facility Document.

**Section 11.04<u>Costs and Expenses; Indemnification</u>**. (a) Each Borrower agrees to pay all reasonable and documented out-of-pocket costs and expenses of each Agent, the Manager, the Lenders and each other Secured Party in connection with the preparation, review, negotiation, reproduction, execution and delivery of this Agreement and the other Facility Documents, including the reasonable fees and disbursements of outside counsel for each Agent and any auditors, accountants, consultants, appraisers and rating agency or other professional advisors and agents engaged by any Agent; UCC filing fees and all other related fees and expenses in connection therewith; and in connection with any modification or amendment of this Agreement or any other Facility Document. Further, each Borrower shall pay (A) all reasonable and

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documented out-of-pocket costs and expenses (including all reasonable and documented fees, expenses and disbursements of legal counsel), and any auditors, accountants, consultants or appraisers or other professional advisors and agents engaged by any Agent and incurred by any Agent in the preparation, execution, delivery, filing, recordation, administration, performance or enforcement of this Agreement or any other Facility Document or any consent, amendment, waiver or other modification relating thereto, (B) all reasonable out-of-pocket costs and expenses (including all reasonable and documented fees, expenses and disbursements of legal counsel) of creating, perfecting, releasing or enforcing the Collateral Agent's security interests in the Collateral, including filing and recording fees, expenses and Other Taxes, search fees, and title insurance premiums, and (C) after the occurrence of any Event of Default, all costs and expenses incurred by the Agents and the other 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 any Agent and the other 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 and documented fees and disbursements of attorneys, accountants, auditors, consultants, appraisers and other professionals engaged by any Agent or the other Secured Parties. The undertaking in this Section shall survive repayment of the Obligations, any foreclosure under, or modification, release or discharge of, any or all of the Collateral Documents, termination of this Agreement and the other Facility Documents and the resignation or replacement of any Agent. Without prejudice to its rights hereunder, the expenses and the compensation for the services of each Agent are intended to constitute expenses of administration under any applicable bankruptcy 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;(a)Each 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 "<u>Indemnified Party</u>") from and against any and all claims, damages, losses, liabilities, obligations, expenses, penalties, actions, suits, judgments and disbursements of any kind or nature whatsoever (including the reasonable and documented fees and disbursements of counsel) 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 Collateral Document or any transaction contemplated hereby or thereby (and regardless of whether or not any such transactions are consummated) (collectively, the "<u>Indemnified Liabilities</u>"), including any such Indemnified 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 Collateral Document or any of the transactions contemplated hereby or thereby; (ii) any breach of any covenant by any Loan Party contained in any Facility Document; (iii) any representation or warranty made or deemed made by any Loan Party contained in any Facility Document or in any certificate, statement or report delivered in connection therewith is false or misleading; (iv) any failure by any Loan Party 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 first priority security interest in all of the Collateral free and clear of all Liens; (vi) any action or omission, not expressly authorized by the Facility Documents, by any Loan Party or any Affiliate of any Borrower which has the effect of reducing or impairing the Collateral or the rights of any Agent or the Secured Parties with respect thereto; (vii) the failure to file, or any delay in filing, financing statements, continuation statements 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 of an Obligor to the payment with respect to any Collateral not being a legal, valid and binding obligation of such Obligor enforceable against it in accordance with its terms, or any other claim

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resulting from any related property; (ix) the commingling of Collections on the Collateral at any time with other funds; (x) any failure by any Loan Party to give reasonably equivalent value in connection with any acquisition or other transfer of assets by or to such Borrower, 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; and (xi) any Unmatured Event of Default or Event of Default; <u>provided</u> that the Borrowers shall not be liable to the extent any such Indemnified Liability is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party's fraud, bad faith, gross negligence or willful misconduct; <u>provided</u>, however that in no event will such Indemnified Party have any liability for any special, exemplary, indirect, punitive or consequential damages in connection with or as a result of such Indemnified Party's activities related to this Agreement or any Facility Document or any agreement or instrument contemplated hereby or thereby or referred to herein or therein; <u>provided</u>, <u>further</u>, that any payment hereunder which relates to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim, or additional sums described in <u>Sections 2.11</u> or <u>2.12</u>, shall not be covered by this <u>Section 11.04(b)</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)All amounts due under this <u>Section 11.04</u> shall be paid (or reserved for in a Restricted Borrower Account for payment on the following Payment Date) not later than three (3) Business Days after demand therefor.

**Section 11.05<u>Execution in Counterparts</u>**. This Agreement 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 Agreement by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof. The parties hereto agree that "execution," "signed," "signature," and words of like import in this Agreement shall be deemed to include electronic signatures, authentication, or the keeping of records in electronic form (including deliveries by facsimile, emailed or any other electronic means that reproduces an image of an actual executed signature page), 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 record keeping system, as the case may be, to the extent and as provided for in any Applicable Law, including the Electronic Signatures in Global and National Commerce Act, the Uniform Electronic Transactions Act as in effect in any state, the New York Electronic Signatures and Records Act (N.Y. State Tech. §§ 301-309), the Illinois Electronic Commerce Security Act (5 ILCS 175/1-101 et seq.), or the Uniform Commercial Code, and the parties hereto hereby waive any objection to the contrary.

**Section 11.06<u>Assignability</u>**. No Borrower may assign its rights or obligations hereunder or any interest herein without the prior written consent of the Administrative Agent (acting at the written direction of the Required Lenders). The Lenders may assign their rights, interests or obligations under this Agreement as permitted under <u>Section 12.01</u>. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns (including by operation of law).

**Section 11.07<u>Governing Law</u>**. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

**Section 11.08<u>Severability of Provisions</u>**. Any provision of this Agreement 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.

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**Section 11.09<u>Confidentiality</u>**. Each Secured Party agrees to keep confidential all Borrower Information; <u>provided</u> 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 of a Secured Party, or (y) any of their respective Affiliates, employees, directors, agents, representatives, consultants, attorneys, accountants and other professional advisors with the need to know such information for a purpose hereunder or in connection with this Agreement or the other Facility Documents (collectively, the "<u>Secured Party Representatives</u>"), it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Borrower Information, (b) subject to an agreement to comply with the provisions of this Section (or other provisions at least as restrictive as this Section), (i) 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, (ii) to any prospective agent or co-agent of any Agent, (iii) as reasonably required by any direct or indirect contractual counterparties or professional advisors thereto, to any swap or derivative transaction relating to the Borrowers and the Obligations, and (iv) to any provider of credit protection to a Lender or any provider of a hedge for the benefit of a Lender, (c) to any Governmental Authority having 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 or requested to be disclosed pursuant to any Applicable Law, (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 in violation hereof, (f) any rating agency or a nationally recognized statistical rating organization in connection with Rule 17g-5 promulgated by the SEC, (g) in connection with the exercise of any remedy hereunder or under any other Facility Document and (h) to the other parties to the Facility Documents in connection with the administration of this credit facility or the enforcement of the Facility Documents, (i) by a Conduit Lender (or Committed Lender on its behalf) to (x) its Program Support Providers and (y) any trustee or collateral agent for the benefit of the holders of the commercial paper notes or other senior indebtedness of a Conduit Lender appointed pursuant to such Conduit Lender's program documents (after obtaining such Person's agreement to keep such confidential information confidential in a manner substantially similar to this Section 11.09), (j) to any rating agency providing a rating for any Conduit Lender's debt and (k) to any Person acting as a placement agent, dealer or investor Conduit Lender's commercial paper (provided that any confidential information provided to any such placement agent, dealer or investor does not reveal the identity of the Borrower or any of their Affiliates and is confined to information of the type that is typically provided to such entities by asset-backed commercial paper conduits). In addition, each Secured Party may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service providers to the lending industry and service providers to the Secured Parties in connection with the administration and management of this Agreement and the other Facility Documents.

**Section 11.10<u>Merger</u>**. This Agreement and the other Facility Documents executed by the Administrative Agent, the Collateral Agent or the Lenders taken as a whole incorporate the entire agreement between the parties thereto concerning the subject matter thereof and such Facility Documents supersede any prior agreements among the parties relating to the subject matter thereof.

**Section 11.11<u>Survival</u>**. 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 2.11</u>, <u>2.12</u>, <u>2.15</u>, <u>7.07(b)</u>, <u>8.04(h)</u>, <u>10.03</u>, <u>10.04</u>, <u>10.07</u>, <u>11.02</u>, <u>11.03</u>, <u>11.04</u>, <u>11.07</u>, <u>11.08</u>, <u>11.12</u>, <u>11.13</u>, <u>11.14</u>, <u>11.16</u>, <u>11.18</u> and <u>11.19</u> and this Section <u>11.11</u> shall survive the termination of this Agreement in whole or in part and the payment in full in cash of the principal of and interest on the Advances.

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**Section 11.12<u>Submission to Jurisdiction; Waivers; Etc</u>**. Each party hereto hereby irrevocably and unconditionally:

&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)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 exclusive general jurisdiction of the courts of the State of New York located in the County of New York, the courts of the United States of America for the Southern District of New York, and the appellate courts of any of them;

&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)consents that any such action or proceeding may be brought in any court described in <u>Section 11.12(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)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 party at its address referenced in <u>Section 11.02</u> or at such other address as may be permitted 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;(d)agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by 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;(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 party hereto or any Secured Party arising out of or relating to this Agreement or any other Facility Document any special, exemplary, indirect, punitive or consequential damages (as opposed to direct or actual damages) (whether or not the claim therefor is based on contract, tort or duty imposed by any applicable legal requirement).

**Section 11.13<u>Waiver of Jury Trial</u>**. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER FACILITY DOCUMENT OR FOR ANY COUNTERCLAIM THEREIN OR RELATING THERETO.

**Section 11.14<u>Service of Process</u>**. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE OF PROCESS AND IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN <u>SECTION 11.02</u>. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

**Section 11.15<u>Waiver of Setoff</u>**. Each Borrower 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 11.16<u>PATRIOT Act Notice</u>**. Each Lender and each Agent hereby notifies the Borrowers 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 "<u>PATRIOT Act</u>"), it is required to obtain, verify and record information that identifies each Borrower, which information includes the name and address of such Borrower and other information that will allow the Lenders to identify such Borrower in accordance with the PATRIOT Act. Each Borrower shall provide to the extent commercially reasonable, such information and take such actions as are reasonably requested by

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any Lender or any Agent in order to assist such Lender or such Agent in maintaining compliance with the PATRIOT Act.

**Section 11.17<u>Business Days</u>**. In the event that the date of any Payment Date, Optional Prepayment Date or Final Maturity Date shall not be a Business Day, then notwithstanding any other provision of this Agreement or any 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, Optional Prepayment Date 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 11.18<u>Third-Party Beneficiary</u>**. The parties hereto acknowledge and agree that each Approved Account Bank, the Indemnified Parties and the Affected Persons are third party beneficiaries of this Agreement.

**Section 11.19<u>No Fiduciary Duty</u>**. Each Agent, each Lender and their Affiliates (collectively, solely for purposes of this paragraph, the "<u>Creditors</u>"), may have economic interests that conflict with those of a Loan Party or its Affiliates. Each Borrower agrees that nothing in the Facility Documents or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Creditor, on the one hand, and any Borrower, its stockholders or its Affiliates, on the other. Each Borrower acknowledges and agrees that (i) the transactions contemplated by the Facility Documents (including the exercise of rights and remedies hereunder and thereunder) are arm's-length commercial transactions between the Creditors, on the one hand, and the Borrowers, on the other, and (ii) in connection therewith and with the process leading thereto, (x) no Creditor has assumed an advisory or fiduciary responsibility in favor of any Borrower, its stockholders or its Affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Creditor has advised, is currently advising or will advise any Borrower, its stockholders or its Affiliates on other matters) or any other obligation to any Borrower except the obligations expressly set forth in the Facility Documents and (y) each Creditor is acting solely as principal and not as the agent or fiduciary of any Borrower, its management, stockholders, creditors or any other Person. Each Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto. Each Borrower agrees that it will not claim that any Creditor has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to any Borrower, in connection with such transaction or the process leading thereto.

**Section 11.20<u>Acknowledgement Regarding Any Supported QFCs</u>**. To the extent that the Facility Documents provide support, through a guarantee or otherwise, for Hedging Agreements or any other agreement or instrument that is a QFC (such support, "<u>QFC Credit Support</u>" and each such QFC a "<u>Supported QFC</u>"), 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>U.S. Special Resolution Regimes</u>") in respect of such Supported QFC and QFC Credit Support (with this <u>Section 11.20</u> 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 or of the U.S. or any other state of the U.S.) that in the event a Covered Entity that is party to a Supported QFC (each, a "<u>Covered Party</u>") 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

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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 U.S. or a state of the U.S. 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 U.S. or a state of the U.S.

**Section 11.21<u>Non-Recourse</u>**. Each Secured Party acknowledges that each Loan Party is required to be a special purpose entity and that none of the directors, officers, incorporators, shareholders, partners, agents or employees of a Loan Party shall be personally liable for any of the Obligations of such Loan Party under this Agreement. The Loan Parties' sole source of funds for payment of all amounts due hereunder shall be the Collateral. No recourse shall be had for the payment of any amount owing in respect of the Advances against a Person other than the Loan Parties for any other amounts payable in respect of the Obligations hereunder or under the other Facility Documents.

**Section 11.22<u>Acknowledgement and Consent to Bail-In of Affected Financial Institutions</u>**. 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 Affected Financial Institution arising under any Facility Document 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 party hereto 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 entity, 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

the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.

**Article XII<br>ASSIGNMENT**

**Section 12.01<u>Assignments and Participations</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)<u>Conditions to Assignment by Lenders</u>. Except as provided herein, each Lender may assign all or any portion of its Commitment Amount or Advances and other rights and obligations under this Agreement to an Eligible Assignee; <u>provided</u> that (i) each such

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assignment shall be in a minimum principal amount of $1,000,000 (or, if less, the then outstanding amount of such Lender's Advances and/or Commitment Amount) or such lesser amount consented to by the Required Lenders, (ii) the parties to such assignment shall execute and deliver to Administrative Agent, for recording in the Register, an Assignment and Acceptance (with a copy to the Collateral Agent), (iii) with the prior written consent of the Lead Borrower (such consent not to be unreasonably withheld, it being understood that it shall be reasonable for the Lead Borrower to take into account the Business Objective) unless and until an Event of Default has occurred and is continuing and (iv) with the prior written consent of the Administrative Agent and the Collateral Agent (such consent to be given at the written direction of the Required Lenders and **<u>(</u>**not to be unreasonably withheld) unless such assignment is to another Lender, a Conduit Assignee or an Affiliate of a Lender. The assignee, if it is not an existing Lender, shall deliver to the Administrative Agent (with a copy to the Collateral Agent) (x) its applicable tax documentation pursuant to <u>Section 11.03(g)(ii)</u>, and (y) all documentation and other information that the Administrative Agent or the Collateral Agent reasonably requests under applicable "know your customer" and anti-money laundering rules and regulations, including without limitation Title III of the Patriot Act. Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment and Acceptance, (1) the assignee thereunder shall be a party hereto and, to the extent provided in such Assignment and Acceptance, have the rights and obligations of a Lender hereunder, and (2) the assigning Lender shall, to the extent provided in such Assignment and Acceptance and upon payment to Administrative Agent of the registration fee referred to in this <u>Section 12.01(a)</u>, be released from its obligations 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;(b)In addition to its rights under Section 12.01(a), each Conduit Lender may at any time assign its rights in the Advances (and its rights hereunder and under the Facility Documents) to its related Committed Lender or its related Program Support Provider or any Affiliate of any of the foregoing. Furthermore, each Conduit Lender may at any time grant a security interest in and lien on, all or any portion of its interests under this Agreement, its Advances and all Facility Documents to (i) its related Committed Lender, (ii) its Managing Agent, (iii) any Program Support Provider who, at any time now or in the future, provides program liquidity or credit enhancement, including, without limitation, an insurance policy for such Conduit Lender relating to the Commercial Paper or the Advances, (iv) any other Person who, at any time now or in the future, provides liquidity or credit enhancement for the Conduit Lenders, including, without limitation, an insurance policy relating to the Commercial Paper or the Advances, (v) any collateral trustee or collateral agent for any of the foregoing or (vi) a trustee or collateral agent for the benefit of the holders of the commercial paper notes or other senior indebtedness of such Conduit Lender appointed pursuant to such Conduit Lender's program documents (provided that any such security interest shall not entitle the related secured party to any right to approve, veto, consent, waive or otherwise influence any approval, consent or waiver hereunder); provided, however, that any such security interest or lien shall be released upon assignment of its Advances to its related Committed Lender. In addition, each Conduit Lender may assign all or a portion of its Advances and its rights and obligations under this Agreement, and, in connection therewith, any other Facility Documents to which it is a party to a Conduit Assignee with respect to such Conduit Lender, without the prior written consent of the Borrower. Upon such assignment by a Conduit Lender to a Conduit Assignee, (i) such Conduit Assignee shall be the owner of Advances and the right to make future Advances or such portion thereof with respect to such Conduit Lender, (ii) the related administrative or managing agent for such Conduit Assignee will act as the Managing Agent for such Conduit Assignee hereunder, with all corresponding rights and powers, express or implied, granted to the Administrative Agent hereunder or under the other Facility Documents, (iii) such Conduit Assignee and its liquidity support provider(s) and credit support provider(s) and other related parties, in each case relating to the Commercial Paper and/or the Advances shall have the benefit of all the rights and protections provided to such Conduit Lender herein and in the other Facility Documents (including, without limitation, any limitation on recourse against such Conduit Assignee as

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provided herein) and (iv) if requested by the Managing Agent with respect to such Conduit Assignee, the parties will execute and deliver such further agreements and documents and take such other actions as the Managing Agent may reasonably request to evidence and give effect to the foregoing. No assignment by any Conduit Lender to a Conduit Assignee of all or any portion of the Advances with respect to such Conduit Lender shall in any way diminish the obligation of the related Committed Lenders to such conduit lender to fund any Advances not funded by such Conduit Lender or such Conduit Assignee.

&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)<u>Register</u>. The Administrative Agent, acting for this purpose as a non-fiduciary agent of the Borrowers, shall maintain in a register for the recordation of the names and addresses of the Lenders and the Commitment Amounts and the principal amount of (and corresponding interest amounts on) advances of each Lender from time to time (the "<u>Register</u>"). The Borrowers, Administrative Agent, the Collateral Agent and Lenders shall deem and treat the Persons listed as Lenders in the Register as the holders and owners of the corresponding Commitment Amounts and Advances listed therein for all purposes hereof, and no assignment or transfer of any such Commitment Amount or Advance shall be effective, in each case, unless and until an Assignment and Acceptance effecting the assignment or transfer thereof shall have been delivered to and accepted by Administrative Agent and recorded in the Register. Prior to such recordation, all amounts owed with respect to the applicable Commitment Amount or Advance shall be owed to the Lender listed in the Register as the owner thereof, and any request, authority or consent of any Person who, at the time of making such request or giving such authority or consent, is listed in the Register as a Lender shall be conclusive and binding on any subsequent holder, assignee or transferee of the corresponding Commitment Amount or Advance. Promptly following its receipt of an Assignment and Acceptance executed by the parties to such as the information contained therein in the Register.

&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)<u>Participation</u>. Notwithstanding anything contained herein to the contrary, any Lender may, from time to time an at any time, sell participations in all or any portion of such Lender's rights and obligations under this Agreement (including all or any portion of its Commitment Amount and the outstanding principal amount of Advances owing to it) to any financial institution that invests in loans other than a Competitor or a Disqualified Lender (or upon the occurrence and during the continuance of an Event of Default that has continued for more than 30 consecutive days, any financial institution that invests in loans selected by such Lender) (such Person, a "<u>Participant</u>"); <u>provided</u> that the terms of any such participation shall not entitle the Participant to direct such Lender as to the manner in which it votes in connection with any amendment, supplement or other modification of this Agreement or any waiver or consent with respect to any departure from the terms hereof, in each case unless and to the extent that the subject matter thereof is one as to which the consent of all Lenders is required in order to approve the same; <u>provided</u>, <u>further</u>, (A) such Lender's obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the Borrowers, the Administrative Agent and the Lenders shall continue to deal solely and directly with such Lender in connection with such Lender's rights and obligations under this Agreement. Any Lender that sells a participation hereunder shall, acting solely for this purpose as an agent of Borrower, maintain a register on which it enters the name and address of each participant and the principal amount of, and corresponding interest amount on, each participant's interest in the Advances, Commitment Amounts or other Obligations (the "<u>Participant Register</u>"); <u>provided</u> that no Lender shall be required to disclose or share the information contained in such Participant Register with Borrower or any other Person, except as required by law and to satisfy the requirements of Treasury regulations section 5f.103-1(c) and proposed Treasury regulations section 1.163-5. The entries in the Participant Register shall be conclusive in the absence of manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary. The Borrowers agree that each Participant shall be entitled to the benefits of Sections 2.11, 2.12

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and 11.03 (subject to the limitations and requirements of such Sections, it being understood that the documentation required under Section 11.03(g) shall be delivered to the participating Lender) to the same extent as if it were a Lender and had acquired its interest by assignment; provided, however, that a Participant shall not be entitled to receive any greater payment under Section 2.11, 2.12 or 11.03, with respect to the participation sold to such Participant, than the applicable Lender would have been entitled to receive except to the extent such entitlement to a greater payment results from a Change in Law after the sale of the participation takes place.

&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)<u>Assignments by Agents</u>. Except to the extent its obligations hereunder and its interest in its Commitment Amount and Advances have been assigned pursuant to one or more Assignments and Acceptances, if an Agent is also a Lender, such Agent shall have the same rights and powers under this Agreement as any other Lender and may exercise the same as though it were not such Agent, respectively. The Agents, the Lenders and their respective Affiliates may accept deposits from, lend money to, act as trustee under indentures of, and generally engage in any kind of business with, any Borrower, or any Affiliate of any Borrower and any Person who may do business with or own securities of any Borrower or any Affiliate of any Borrower, all as if they were not serving in such capacities hereunder and without any duty to account therefor to each other.

&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)<u>[Reserved].</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;(g)<u>Pledge to Federal Reserve</u>. Notwithstanding any other provision set forth in this Agreement, any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including amounts owing to it in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System); <u>provided</u> that no such security interest or the exercise by the secured party of any of its rights thereunder shall release such Lender from any of its funding obligations hereunder or substitute any such pledgee or assignee for such Lender as a party 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;(h)<u>Replacement Lender</u>. If any Lender requests compensation under Section 2.11 or <u>Section 11.03</u> and such Lender has declined or is unable to designate a different lending office in accordance with <u>Section 2.11(b)</u> or <u>Section 11.03(i)</u>, respectively, or if any Borrower is required to pay any amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to such sections or if any Lender is a Defaulting Lender or a Non-Consenting Lender, then the Lead Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Article XII) all of its interests, rights and obligations under this Agreement and the related Facility Documents to an Eligible Assignee that shall assume such obligations (which assignee may be another Lender, if a 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)such 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 from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (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;&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 Section 2.11 or Section 11.03, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)such assignment does not conflict with Applicable Law; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 any assignment resulting from a Lender becoming a Non-Consenting Lender, the applicable assignee shall have consented to the applicable amendment, waiver or consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Each party hereto agrees that (a) an assignment required pursuant to this <u>Section 12.01(h)</u> may be effected pursuant to an Assignment and Acceptance executed by the Borrowers, the Administrative Agent (at the written direction of the Required Lenders) and the assignee and (b) the Lender required to make such assignment need not be a party thereto in order for such assignment to be effective and shall be deemed to have consented to an be bound by the terms thereof; provided that, following the effectiveness of any such assignment, the other parties to such assignment agree to execute and deliver such documents necessary to evidence such assignment as reasonably requested by the applicable Lender; provided, further that any such documents shall be without recourse to or warranty by the parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)(i)&nbsp;&nbsp;&nbsp;&nbsp;If any assignment or participation under this <u>Section 12.01</u> is made to any Disqualified Lender without the Borrowers' prior written consent (any such person, a "<u>Disqualified Person</u>"), then the Borrowers may, at their sole expense and effort, upon notice to the applicable Disqualified Person and the Required Lenders, (A) terminate any Commitment of such Disqualified Person and cause the Borrowers to repay all obligations of the Borrowers owing to such Disqualified Person, (B) in the case of any outstanding Advance held by such Disqualified Person, purchase such Advance by paying the lesser of (x) par and (y) the amount that such Disqualified Person paid to acquire such Advance, plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder and/or (C) require such Disqualified Person to assign, without recourse (in accordance with and subject to the restrictions contained in this Section 12.01), all of its interests, rights and obligations under this Agreement to one or more Eligible Assignees; provided, that, in the case of clause (C), the applicable Disqualified Person has received payment of an amount equal to the lesser of (1) par and (2) the amount that such Disqualified Person paid for the applicable Advance, plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder from the Borrowers and the relevant assignment shall otherwise comply with this Section 12.01 (except that (x) no registration and processing fee shall be required with any assignment pursuant to this paragraph, and (y) no Assignment and Acceptance shall be required to be executed and delivered by the assignor in connection with such assignment. Nothing in this <u>Section 12.01(i)</u> shall be deemed to prejudice any right or remedy that the Borrowers may otherwise have at law or equity.

**Section 12.02<u>Limited Recourse</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)<u>Conduit Lenders</u>. Each of the parties hereto hereby covenants and agrees that it will not, prior to the date that is one year and one day after the payment in full of all Commercial Paper or other debt securities or instruments issued by a Conduit Lender, institute against, or join with any other Person in instituting against, such Conduit Lender, any bankruptcy, reorganization, arrangement, insolvency, examination or liquidation proceedings, or other proceedings under any federal or state (or any other jurisdiction with authority over such Conduit Lender) bankruptcy or similar law. In the event that any such party takes action in violation of this Section 12.02(a), such related Conduit Lender may file an answer with the bankruptcy court or otherwise properly contest or cause to be contested the filing of such a petition by any such party against such Conduit Lender or the commencement of such action and raise or cause to be raised the defense that such party has agreed in writing not to take such

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action and should be estopped and precluded therefrom and such other defenses, if any, as its counsel advises that it may assert. The obligations of the Conduit Lenders under this Agreement are solely the corporate obligations of the Conduit Lenders. No recourse shall be had for the payment of any amount owing in respect of this Agreement, including any obligation or claim arising out of or based upon this Agreement, against any stockholder, employee, officer, agent, director, member, affiliate or incorporator (or Person similar to an incorporator under state business organization laws) of any Conduit 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;(b)<u>Payments by Conduit Lender</u>. Notwithstanding any provisions contained in this Agreement to the contrary, no Conduit Lender shall be obligated to pay any fees, costs, indemnified amounts or expenses due pursuant to this Agreement ("Conduit Lender Amounts") other than in accordance with the order of priorities set out in such Conduit Lender's commercial paper program documents and all payment obligations of each Conduit Lender hereunder are contingent on the availability of funds received pursuant to this Agreement and in excess of the amounts necessary to pay its commercial paper notes; provided, however, that each Committed Lender shall pay any Conduit Lender Amounts, on behalf of any related Conduit Lender, as and when due hereunder, to the extent that such Conduit Lender is precluded by its commercial paper program documents from paying such Conduit Lender Amounts in accordance with this Agreement. Any such amount which any Conduit Lender does not pay pursuant to the operation of the preceding sentence shall not constitute a claim against or corporate obligation of such Conduit Lender for any such insufficiency unless and until funds received pursuant to this Agreement and are available for the payment of such amounts as aforesaid.

**Article XIII<br>GUARANTY**

**Section 13.01<u>Guaranty</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)(i) Subject to this Article XIII, each Loan Party hereby, jointly and severally, irrevocably and unconditionally, as primary obligor and not merely as surety, guarantees to each Secured Party and its successors and assigns, irrespective of the validity and enforceability of this Agreement or any of the Obligations from time to time owing to the Secured Parties by any Loan Party under any Facility Document, in each case strictly in accordance with the terms thereof (such obligations, including any future increases in the amount thereof, being herein collectively called the "<u>Guaranteed Obligations</u>"), (x) the full and punctual payment in full in cash of the Guaranteed Obligations when due, whether at stated maturity, by required prepayment, upon acceleration declaration, acceleration, demand, or otherwise including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a) and (y) in the case of any extension in time of repayment or renewal of this Agreement or the other Facility Documents or any of the Guaranteed Obligations, the full in cash and punctual payment of the Guaranteed Obligations in accordance with the terms of such extension or renewal, whether at stated maturity, upon acceleration or otherwise. Failing the payment of any of the Guaranteed Obligations in full when due for whatever reason, each Loan Party shall be, jointly obligated to immediately pay the amount not so paid. Each Loan Party agrees that this is a guarantee of payment and performance and not a guarantee of collection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Loan Party hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of this Agreement or the other Facility Documents, the absence of any action to enforce this Agreement or the other Facility Documents, any waiver or consent by the Administrative Agent or any Secured Party with respect to any provisions hereof or

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thereof, the recovery of any judgment against any other Loan Party, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Loan Party. Each Loan Party hereby (x) waives (to the maximum extent permitted by applicable law) diligence, presentment, demand of payment, filing of claims with a court in the event of any Insolvency Event involving any other Loan Party, any right to require a proceeding first against such Loan Party, protest, notice and all demands whatsoever and (y) covenants that this Agreement shall not be discharged except by the full payment of the Obligations in accordance with the terms 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)If any Secured Party is required by any court or otherwise to return any payment in respect of the Guaranteed Obligations to any Loan Party or any custodian, trustee, liquidator or other similar official acting in relation to any Loan Party, the Guaranties, to the extent theretofore discharged, shall be reinstated in full in respect thereto in full force and 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Each Loan Party agrees that it shall not be entitled to any right of subrogation in relation to the Secured Parties in respect of any of the Guaranteed Obligations. Each Loan Party further agrees that, as between the Loan Parties, on the one hand, and the Administrative Agent and the Secured Parties, on the other hand, (x) the maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as provided in Article VI for the purposes of its Guaranty, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guaranteed Obligations and (y) in the event of any declaration of acceleration of the Guaranteed Obligations as provided in Article VI, such Guaranteed Obligations (whether or not due and payable at such time) shall forthwith become due and payable by such Loan Party for the purpose of its Guaranty. Each Loan Party shall have the right to seek contribution from any nonpaying Loan Party so long as the exercise of such right does not impair the rights of the Secured Parties 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Each Guaranty shall remain in full force and effect and continue to be effective should any petition be filed by or against any Loan Party for liquidation, reorganization, should any Loan Party become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant part of the assets of any Loan Party, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the case may be. If, at any time, any payment of the Guaranteed Obligations is rescinded or reduced in any amount, or must otherwise be restored or returned by any obligee, whether as a "voidable preference", "fraudulent transfer" or otherwise, the Guaranteed Obligations shall, to the fullest extent permitted by law, be reinstated as though such payment had been due but not made at such time and reduced only by such amount paid and not so rescinded, reduced, restored or returned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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)Each Guaranty shall be a general secured senior obligation of each Loan Party and shall rank senior in right of payment with all existing and future Indebtedness of such Loan Party, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&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>Right of Set-Off</u>. Each payment to be made by a Loan Party in respect of its Guaranty shall be made without set-off, counterclaim, reduction or diminution of any kind or nature. If any Guaranteed Obligation is not paid promptly when due (subject to any applicable grace periods), each of the Secured Parties and their respective Affiliates is authorized, to the fullest extent permitted by law, to set-off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held, and other obligations at any time owing, by such Secured Party or its Affiliate to, or for the credit or

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account of, any Loan Party against the obligations of such Loan Party under its Guaranty, irrespective of whether or not such Secured Party shall have made any demand thereunder and although such obligations may be unmatured. The rights of each Secured Party under this Section 13.01(b) are in addition to all other rights and remedies (including other rights of set-off) that such Secured Party may have.

&nbsp;&nbsp;&nbsp;&nbsp;&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)<u>Limitation on Guarantor Liability</u>. Each Loan Party and each Secured Party hereby confirms that it is the intention of all such parties that the Guaranty of such Loan Party not constitute a fraudulent transfer or fraudulent conveyance, or similar limitation, for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Guaranty. To effectuate the foregoing intention, the Administrative Agent, the Secured Parties and the Loan Parties hereby irrevocably agree that the obligations of each Loan Party shall be limited to the maximum amount as shall, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Loan Party that are relevant under such laws and after giving effect to any collections from the rights to receive contribution from or payments made by or on behalf of any other Loan Party in respect of the obligations of such other Loan Party under this Agreement, result in the obligations of such Loan Party under its Guaranty not constituting a fraudulent transfer or fraudulent conveyance, or similar limitation, under applicable law. Each Loan Party that makes a payment under its Guaranty shall be entitled upon payment in full in cash of all Guaranteed Obligations under this Agreement to a contribution from each other Loan Party in an amount equal to such other Loan Party's pro rata portion of such payment based on the respective net assets of all of the Loan Parties at the time of such payment determined in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&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)<u>Subrogation</u>. Each Loan Party shall be subrogated to all of the rights of the Secured Parties against the Loan Parties in respect of any amounts paid by such Loan Party pursuant to the provisions of this Agreement; <u>provided</u> that, if an Event of Default or Unmatured Event of Default has occurred and is continuing, no Loan Party shall be entitled to enforce or receive any payments arising out of, or based upon, such right of subrogation.

&nbsp;&nbsp;&nbsp;&nbsp;&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)<u>Continuing Guarantee</u>. Each Guaranty is a continuing guarantee, shall be binding on the relevant Loan Party and its successors and assigns, and shall be enforceable by the Administrative Agent or the Secured Parties, as set forth herein. If all or a part of any Secured Party's interest in any Guaranteed Obligation is assigned or otherwise transferred, the transferor's rights under the Guaranty, to the extent applicable to the Guaranteed Obligation so transferred, shall automatically be transferred with such Guaranteed Obligation.

[SIGNATURE PAGES TO FOLLOW]

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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.

BEETHOVEN FINANCING 1, LLC, as Initial Borrower

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

BEETHOVEN HOLDINGS 1, LLC, as Initial SPV Guarantor

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

[Bain Warner JVCo – Signature Pages to Credit Agreement]

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THE BANK OF NEW YORK MELLON, as Administrative Agent

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

THE BANK OF NEW YORK MELLON, as Collateral Agent

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender and Joint Lead Arranger

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

GOLDMAN SACHS BANK USA, as a Lender and Joint Lead Arranger

By: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

Name:

Title:

[Bain Warner JVCo – Signature Pages to Credit Agreement]

## Exhibit 31.1

**Exhibit 31.1**

**CHIEF EXECUTIVE OFFICER CERTIFICATION**

I, Robert Kyncl, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025 of Warner Music Group Corp. (the "Registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's Board of Directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp;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: August 7, 2025

---

| |
|:---|
| /S/ ROBERT KYNCL |
| **Chief Executive Officer<br>(Principal Executive Officer)** |

---

## Exhibit 31.2

**Exhibit 31.2**

**CHIEF FINANCIAL OFFICER CERTIFICATION**

I, Armin Zerza, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I have reviewed this quarterly report on Form 10-Q for the period ended June 30, 2025 of Warner Music Group Corp. (the "Registrant");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's Board of Directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;&nbsp;&nbsp;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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;&nbsp;&nbsp;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: August 7, 2025

---

| |
|:---|
| /S/ ARMIN ZERZA |
| **Chief Financial Officer<br>(Principal Financial and Accounting Officer)** |

---

## Exhibit 32.1

**Exhibit 32.1**

**Certification of the Chief Executive Officer**

**Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Quarterly Report of Warner Music Group Corp. (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Robert Kyncl, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) &nbsp;&nbsp;&nbsp;&nbsp;the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) &nbsp;&nbsp;&nbsp;&nbsp;the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 7, 2025

---

| |
|:---|
| /S/ ROBERT KYNCL |
| **Robert Kyncl<br>Chief Executive Officer** |

---

## Exhibit 32.2

**Exhibit 32.2**

**Certification of the Chief Financial Officer**

**Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Quarterly Report of Warner Music Group Corp. (the "Company") on Form 10-Q for the period ended June 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Armin Zerza, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 7, 2025

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| |
|:---|
| /S/ ARMIN ZERZA |
| **Armin Zerza<br>Chief Financial Officer** |

---

<br>