# EDGAR Filing Document

**Accession Number:** 0002033362
**File Stem:** 0001193125-25-142028
**Filing Date:** 2025-6
**Character Count:** 1603298
**Document Hash:** 41cb3fa6a6444f8c37605b193eadd7e8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-142028.hdr.sgml**: 20250617

**ACCESSION NUMBER**: 0001193125-25-142028

**CONFORMED SUBMISSION TYPE**: 10-12G/A

**PUBLIC DOCUMENT COUNT**: 3

**FILED AS OF DATE**: 20250617

**DATE AS OF CHANGE**: 20250617

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Audax Private Credit Fund, LLC
- **CENTRAL INDEX KEY:** 0002033362

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** X1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12G/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56739
- **FILM NUMBER:** 251053164

**BUSINESS ADDRESS:**
- **STREET 1:** 320 PARK AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022
- **BUSINESS PHONE:** 212-703-2700

**MAIL ADDRESS:**
- **STREET 1:** 320 PARK AVENUE
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10022

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Audax Private Credit Fund, LP
- **DATE OF NAME CHANGE:** 20240809

##### [**Table of Contents**](#toc)
**As filed with the Securities and Exchange Commission on June 17, 2025** 

**File No. 000-56739** 

**U.S. SECURITIES AND EXCHANGE COMMISSION** 

**Washington, D.C. 20549** 

**AMENDMENT NO. 1** 

**TO** 

**FORM 10** 

**GENERAL FORM FOR REGISTRATION OF SECURITIES** 

**PURSUANT TO SECTION 12(b) OR 12(g)** 

**OF THE SECURITIES EXCHANGE ACT OF 1934** 

## Audax Private Credit Fund, LLC
**(Exact name of registrant as specified in charter)** 

---

| | |
|:---|:---|
| **Delaware** | **99-4488204** |
| **(State or other jurisdiction of<br>incorporation or registration)** | **(I.R.S. Employer<br>Identification No.)** |
| **320 Park Avenue,<br>New York, NY** | **10022** |
| **(Address of principal executive offices)** | **(Zip Code)** |

---

**(212) 703-2700** 

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

***with copies to:***

**Rajib Chanda, Esq.** 

**Steven Grigoriou, Esq.** 

**Simpson Thacher & Bartlett LLP** 

**900 G Street NW** 

**Washington, DC 20001** 

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

**None** 

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

**Limited liability company interests, par value $0.001** 

**(Title of class)** 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See 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. ☐

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**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
|  [Explanatory Note](#tx948530_1) | [Explanatory Note](#tx948530_1) | 1 |
|  [Forward-Looking Statements](#tx948530_2) | [Forward-Looking Statements](#tx948530_2) | 3 |
|  [Risk Factor Summary](#tx948530_3) | [Risk Factor Summary](#tx948530_3) | 5 |
|  Item 1. | [Business](#tx948530_4) | 7 |
|  Item 1A. | [Risk Factors](#tx948530_5) | 46 |
|  Item 2. | [Financial Information](#tx948530_6) | 99 |
|  Item 3. | [Properties](#tx948530_7) | 109 |
|  Item 4. | [Security Ownership Of Certain Beneficial Owners And Management](#tx948530_8) | 110 |
|  Item 5. | [Directors And Executive Officers](#tx948530_9) | 111 |
|  Item 6. | [Executive Compensation](#tx948530_10) | 117 |
|  Item 7. | [Certain Relationships And Related Transactions, And Director Independence](#tx948530_11) | 118 |
|  Item 8. | [Legal Proceedings](#tx948530_12) | 119 |
|  Item 9. | [Market Price Of And Dividends On The Registrant's Common Equity And Related Shareholder Matters](#tx948530_13) | 120 |
|  Item 10. | [Recent Sales Of Unregistered Securities](#tx948530_14) | 124 |
|  Item 11. | [Description Of Registrant's Securities To Be Registered](#tx948530_15) | 125 |
|  Item 12. | [Indemnification Of Directors And Officers](#tx948530_16) | 129 |
|  Item 13. | [Financial Statements And Supplementary Data](#tx948530_17) | 130 |
|  Item 14. | [Changes In And Disagreements With Accountants On Accounting And Financial Disclosure](#tx948530_18) | 131 |
|  Item 15. | [Financial Statements And Exhibits](#tx948530_19) | 132 |

---

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**EXPLANATORY NOTE** 

Audax Private Credit Fund, LLC (the "Fund") is filing this amendment No. 1 to its registration statement on Form 10 (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), on a voluntary basis. The Fund filed the original registration statement on Form 10 on April 23, 2025 to permit it to file an election to be regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (the "Investment Company Act").

*Unless indicated otherwise in this Registration Statement or the context requires otherwise, the terms:* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"We," "us," "our," and the "Fund" refer to Audax Private Credit Fund, LLC, a Delaware limited liability company, and its consolidated subsidiaries and predecessor entities;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"private fund" refers to the Fund and its consolidated subsidiaries and predecessor entities prior to the Fund's election to be regulated as a BDC;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"Audax Group" refers collectively to Audax Management Company (NY), LLC and Audax Management Company, LLC, each Delaware limited liability companies, together with their affiliated entities, including their private debt and private equity businesses ("Audax Private Debt" and "Audax Private Equity", respectively);* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"Adviser" and our "investment adviser" refer to Audax PDB Management Company, LLC, our investment adviser;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"Administrator" and our "administrator" refer to Audax Management Company (NY), LLC, our administrator;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"Common Shares" refers to our limited liability company interests, par value $0.001 per share;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"Shares" refers collectively to our Common Shares and preferred limited liability company interests (the "Preferred Shares"), if any; and* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *"shareholders" refers to holders of our Shares.* 

The Fund is an emerging growth company as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act") and the Fund will take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the "Securities Act").

Upon the effective date of this Registration Statement, we will be subject to the requirements of Section 13(a) of the Exchange Act, including the rules and regulations promulgated under the Exchange Act, which will require us to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K. We will also be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act. Additionally, we will be subject to the proxy rules in Section 14 of the Exchange Act and the Fund, its directors, officers, and principal shareholders will be subject to the reporting requirements of Sections 13 and 16 of the Exchange Act.

We filed an election to be regulated as a BDC under the Investment Company Act on April 23, 2025. Upon filing the election, we became subject to the Investment Company Act requirements applicable to BDCs.

**Investing in our shares may be considered speculative and involves a high degree of risk, including the following:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **An investment in our shares is not suitable for you if you might need access to the money you invest in our shares in the foreseeable future.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **You should not expect to be able to sell your shares regardless of how we perform.** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **If you are unable to sell your shares, you will be unable to reduce your exposure during any market downturn.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **We do not intend to list our shares on any securities exchange and we do not expect a secondary market in the shares to develop. Therefore, the Fund's shares constitute illiquid investments.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **Our distributions may be funded from unlimited amounts of offering proceeds or borrowings, which may constitute a return of capital and reduce the amount of capital available to us for investment. Any capital returned to you through distributions will be distributed after payment of fees and expenses.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **We will invest in securities that are rated below investment grade by rating agencies or that would be rated below investment grade if they were rated. Below investment grade securities, which are historically referred to as "junk," have predominantly speculative characteristics with respect to the issuer's capacity to pay interest and repay principal. They may also be difficult to value and are illiquid.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **We intend to borrow money, which magnifies the potential for gain or loss and increases the risk of investing in us. Our indebtedness could adversely affect our business, financial condition or results of operations. Holders of our indebtedness would have fixed-dollar claims on our assets that have priority over the claims of our shareholders. If the value of our assets decreases or our total income decreases, leverage will cause our net asset value or net income, respectively, to decline more sharply than it otherwise would have without leverage.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **An investment in the Fund is suitable only for sophisticated investors and requires the financial ability and willingness to accept the high risks and lack of liquidity inherent in an investment in the Fund.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** **The Fund intends to invest primarily in privately-held companies for which very little public information exists. Such companies are also generally more vulnerable to economic downturns and may experience substantial variations in operating results.** 

**As a result, there is a risk of a substantial loss of your investment. See "*Item 1A. Risk Factors*" for more information about these and other risks relating to our shares.** 

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**FORWARD-LOOKING STATEMENTS** 

This Registration Statement contains forward-looking statements that involve substantial known and unknown risks, uncertainties and other factors. Undue reliance should not be placed on such statements. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our current and prospective portfolio investments, our industry, our beliefs and our assumptions. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our future operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our business prospects and the prospects of the companies in which we may invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact of the investments that we expect to make;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to raise sufficient capital to execute our investment strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of our portfolio companies to achieve their objectives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• general economic and political trends and other external factors, including pandemics, tariffs and other market
disruptions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our current and expected financing arrangements and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in the general interest rate environment;

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the timing and amount of cash flows, distributions and dividends, if any, from our portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our contractual arrangements and relationships with third parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• actual and potential conflicts of interest with Audax Group, the Adviser and its affiliates, and its senior
investment team;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the elevating levels of inflation, and its impact on our portfolio companies and on the industries in which we
invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the dependence of our future success on the general economy and its effect on the industries in which we may
invest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our use of financial leverage;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of the Adviser to locate suitable investments for us and to monitor and administer our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the ability of the Adviser or its affiliates to attract and retain highly talented professionals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our ability to qualify and maintain our qualification as a BDC and as a regulated investment company
("RIC") under the Internal Revenue Code of 1986, as amended (the "Code");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank
Act") and the rules and regulations issued thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the effect of changes to tax legislation and our tax position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the tax status of the enterprises in which we may invest.

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These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in laws and regulations, changes in political, economic or industry conditions, changes in the interest
rate environment or other conditions affecting the financial and capital markets and changes in the tariff policies of the U.S. and other nations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• an economic downturn and the time period required for robust economic recovery therefrom, which will likely have
a material impact on our portfolio companies' results of operations and financial condition for its duration, which could lead to the loss of some or all of our investments in such portfolio companies and have a material adverse effect on our
results of operations and financial condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• upon entry into an agreement with a lender, a contraction of available credit and/or an inability to access
capital markets or additional sources of liquidity could have a material adverse effect on our results of operations and financial condition and impair our lending and investment activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest rate volatility could adversely affect our results, particularly given that we use leverage as part of
our investment strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• currency fluctuations could adversely affect the results of our investments in foreign companies, particularly to
the extent that we receive payments denominated in foreign currency rather than U.S. dollars;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• risks associated with possible disruption in our or our portfolio companies' operations due to wars and
other forms of conflict, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes and global health epidemics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the risks, uncertainties and other factors we identify in "*Item 1A. Risk Factors*" in this
Registration Statement, and in our other filings with the SEC that we make from time to time.

Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of the assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this Registration Statement should not be regarded as a representation by us that our plans and objectives will be achieved. These risks and uncertainties include those described or identified in the section entitled "*Item 1A. Risk Factors*" and elsewhere in this Registration Statement. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Registration Statement. Moreover, we assume no duty and do not undertake to update the forward-looking statements and projections contained in this Registration Statement, which are excluded from the safe harbor protection provided by Section 27A of the Securities Act and Section 21E of the Exchange Act.

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**RISK FACTOR SUMMARY** 

The following is only a summary of the principal risks that may materially adversely affect our business, financial condition, results of operations and cash flows. The following summary should be read in conjunction with the complete discussion of risk factors we face, which are set forth below in the section entitled "*Item 1A. Risk Factors*" and elsewhere in this Registration Statement.

**Risks Related to Our Business and Structure** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We have a limited operating history.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Regulations governing our operation as a BDC affect our ability to, and the way in which we, raise additional
capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We intend to borrow money, which magnifies the potential for gain or loss and increases the risk of investing in
us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may face increasing competition for investment opportunities, which could delay deployment of our capital,
reduce returns and result in losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If we are unable to source investments, access financing or manage future growth effectively, we may be unable to
achieve our investment objective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Failure to maintain our status as a BDC would reduce our operating flexibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may experience fluctuations in our quarterly results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Because our business model will depend to a significant extent upon relationships with corporations, financial
institutions and investment firms, the inability of our Adviser to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Board (as defined below) may change our investment objective, operating policies and strategies without prior
notice or shareholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will be operating in a period of disruption, volatility and uncertainty in the capital markets and in the
economy generally.

**Risks Related to Our Portfolio Investments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our investments in portfolio companies may be risky, and we could lose all or part of our investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An investment strategy focused primarily on privately held middle market companies presents certain challenges,
including but not limited to, the lack of available information about these companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our portfolio securities will be non-traded or thinly traded in many instances and, as a result, the lack of
liquidity in our investments may adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our portfolio may be invested in a limited number of portfolio companies and industries, which will subject us to
a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Loan originations may expose us to risk not present in other types of loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We generally will not control the business operations of our portfolio companies and management of our portfolio
companies could make decisions adverse to our interests as debt investors.

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

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**Risks Related to Our Securities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may not be able to pay you distributions, and our distributions may not grow over time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may need to raise additional capital to grow because we must distribute most of our income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A significant portion of our investment portfolio is recorded at fair value as determined in good faith by our
Valuation Designee (as defined below) and, as a result, there is uncertainty as to the value of our portfolio investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our distributions to shareholders may be funded from expense reimbursements or waivers of investment advisory
fees, some of which are subject to repayment pursuant to our Expense Support and Conditional Reimbursement Agreement (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A shareholder's interest in us could be diluted if we issue additional Shares, which could reduce the
overall value of an investment in us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio
investments, reducing our net asset value ("NAV") through increased net unrealized depreciation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investing in our shares involves a high degree of risk and is highly speculative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The NAV of our shares may fluctuate significantly.

**Risks Related to the Adviser and Its Affiliates; Conflicts of Interest** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our Adviser and its affiliates, including our officers and some of our directors, could face conflicts of
interest caused by compensation arrangements with us, which could result in actions that are not in the best interests of our shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may make investments that could give rise to a conflict of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The time and resources that individuals associated with our Adviser devote to us may be diverted, and we may face
additional competition due to the fact that our Adviser is not prohibited from raising money for or managing other entities that make the same types of investments that we target.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our ability to achieve our investment objective depends on our Adviser's ability to manage and support our
investment process. If our Adviser were to lose its key professional(s), our ability to achieve our investment objective could be significantly harmed.

**General Risks Related to an Investment in the Fund** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• It is uncertain as to when profits, if any, will be realized by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consumer, corporate and financial confidence may be adversely affected by current or future tensions around the
world, fear of terrorist activity and/or military conflicts, localized or global financial crises or other sources of political, social or economic unrest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The ongoing armed conflict as a result of the war and international conflict in Ukraine and the Middle East have
caused global uncertainty and may have a material adverse impact on us and our portfolio companies  *.*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Inflation and deflation present risks for us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter
our business strategy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Market and interest rate fluctuations may pose risks for us.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There is no public market for the Shares, and we do not expect any market for the Shares to develop.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may be unable to invest a significant portion of the net proceeds of any offering of the Shares on acceptable
terms in an acceptable time frame.

**Certain U.S. Federal Income Tax Risks** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To the extent that we do not realize income or choose not to retain after-tax realized net capital gains, we will have a greater need for additional capital to fund our investments and operating expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We will be subject to corporate-level U.S. federal income tax if we are unable to maintain our qualification as a
RIC under Subchapter M of the Code, including as a result of our failure to satisfy the RIC distribution requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Our portfolio investments may present special tax issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We may have difficulty paying our required distributions if we recognize income before or without receiving cash
and representing such income.

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| | |
|:---|:---|
| **ITEM 1.** | **BUSINESS**  |

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**The Fund** 

We are organized as a Delaware limited liability company named Audax Private Credit Fund, LLC. We are a newly-organized, non-diversified, closed-end management investment company that has elected to be regulated as a BDC under the Investment Company Act. In addition, we expect to elect to be treated as a RIC under Subchapter M of the Code, and we expect to qualify as a RIC annually thereafter. As a BDC and a RIC, we must comply with certain regulatory requirements. See "*Item 1. Business*—*Regulation as a Business Development Company" and "—Material U.S. Federal Income Tax Considerations*."

Prior to converting to a Delaware limited liability company on April 10, 2025 (the "Conversion") and electing to be regulated as a BDC on April 23, 2025 (the "Conversion Effective Date"), we operated as Audax Private Credit Fund, LP, a Delaware limited partnership originally organized on July 23, 2024 (the "Limited Partnership"), as a private fund in reliance on an exception from the definition of "investment company" under Section 3(c)(7) of the Investment Company Act. On April 7, 2025, pursuant to a plan of conversion (the "Plan of Conversion"), a majority of the limited partners and the general partner of the private fund approved, among other things, the Fund's Limited Liability Company Agreement (the "LLC Agreement"), the Fund's election to be regulated as a BDC under the Investment Company Act, an investment advisory agreement, dated April 10, 2025 (the "Advisory Agreement"), the persons elected to the Board of Directors and an asset coverage ratio of 150%.

Our investment objective is to generate current income and, to a lesser extent, capital appreciation. The Fund intends to invest primarily in senior secured first lien loans, with minority exposure to second lien loans, subordinated or mezzanine loans, and equity and equity-like investments, such as equity and/or warrant kickers, in privately owned U.S. middle market companies. We use the term "middle market companies" to generally refer to companies with $15 million to $100 million of annual earnings before interest, taxes, depreciations and amortization ("EBITDA"), though we may invest in smaller or larger companies if attractive opportunities are available that are otherwise consistent with the strategy of the Fund. We expect that a majority of our investments will be in directly originated loans. Our investment strategy will also include a smaller allocation to more liquid credit investments such as broadly syndicated loans and corporate bonds which may be used for the purposes of maintaining liquidity for our share repurchase program and cash management. Most of our investments will be in private U.S. companies, however (subject to compliance with BDC requirements to invest at least 70% of assets in "eligible portfolio companies," which are generally privately offered securities issued by U.S. private or thinly-traded companies) we may also invest to some extent in non-U.S. companies. We may also invest in publicly traded loans or securities of larger corporate issuers on an opportunistic basis when market conditions create compelling potential return opportunities.

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Under normal circumstances, we will invest at least 80% of our total assets (which includes net assets plus borrowings for investment purposes) directly or indirectly in private credit instruments, which include any directly originated leveraged loan and may include other loans, notes, bonds and/or other debt securities, and for these purposes will include equity and/or warrant kickers in connection with such transactions (collectively, "Private Credit Instruments"). As used herein, an "equity and/or warrant kicker" is an equity incentive used in connection with a credit investment to enhance the risk return profile of such investment, whereby the lender provides credit and, in exchange, receives an equity position or a right to purchase an equity position in the borrower's company as a part of the overall financing arrangement. "Equity and/or warrant kickers" are structured as conditional rewards, granting the lender equity ownership or a right to purchase equity in a borrower's company that will be paid at a future date when the business attains specific performance goals. Derivative instruments will be counted towards our 80% policy to the extent they have economic characteristics similar to Private Credit Instruments. To the extent the Fund determines to invest indirectly in Private Credit Instruments, it may invest through certain synthetic instruments, which will be valued at market value or, if no market value is ascertainable, at fair value for the purpose of complying with the above mentioned policy. When determining the fair value of such a transaction, equity and/or warrant kickers offered in connection with such private credit transaction may be taken into account. The Fund will notify its shareholders at least 60 days prior to any change to the 80% investment policy described above.

To seek to enhance returns, the Fund intends to employ leverage as market conditions permit and at the discretion of the Adviser, but in no event will leverage employed exceed the limitations set forth in the Investment Company Act, which currently allows the Fund to borrow up to a 2:1 debt to equity ratio. In determining the amount of leverage we employ at any particular time, we expect to analyze the maturity, covenants and interest rate structure of the proposed borrowings, the risks of such borrowings within the context of our investment outlook, the underlying performance of our portfolio companies, and the impact of leverage on the Fund. Any such leverage, if incurred, would be expected to increase the total capital available for investment by the Fund. The amount of any leverage that we will employ as a BDC will be subject to oversight by our Board of Directors.

We generally intend to distribute, out of assets legally available for distribution, substantially all of our available earnings, on a quarterly basis, as determined by our Board of Directors, in its discretion.

We expect to conduct private offerings of our Shares to investors in reliance on exemptions from the registration requirements of the Securities Act. See "*Item 1. Business*—*Private Offering*."

**Private Fund Background** 

We were initially formed as a Delaware limited partnership under the laws of the State of Delaware on July 23, 2024.

Prior to the Conversion, we operated as a private fund in reliance on an exemption from the definition of "investment company" under Section 3(c)(7) of the Investment Company Act. As a private fund, we held closings from time to time, to investors who are (i) "accredited investors" within the meaning of Regulation D under the Securities Act, in reliance on exemptions from the registration requirements of the Securities Act, and (ii) "qualified purchasers" as defined under the Investment Company Act. Pursuant to subscription agreements with the private fund, investors in the private fund made commitments to purchase limited partner interests ("Capital Commitments") and were required to fund capital contributions to purchase limited partner interests. In addition, such subscription agreements required that, to the extent such investor had any unfunded Capital Commitments immediately prior to the Conversion (such investors, the "Anchor Investors"), such Anchor Investors would enter into a subscription agreement with the Fund that had a similar drawdown structure (a "Drawdown Subscription Agreement"). Accordingly, Anchor Investors that had uncalled capital prior to the Conversion may have their unfunded Capital Commitments called, alongside monthly subscriptions or intra-month, during the 12-months following the Conversion (the "Interim Period"). As of April 10, 2025, immediately

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prior to the Conversion, the private fund had raised $568 million in Capital Commitments, including $6 million committed to the private fund by an affiliate of the Adviser, and had called capital in the amount of $326 million.

**Private Offering** 

The Fund is non-exchange traded, meaning our Shares are not listed for trading on a stock exchange or other securities market, and our Shares are intended to be sold at a price generally equal to the Fund's monthly NAV per share.

Following the Conversion Effective Date, we expect to conduct private offerings of our Shares to investors in reliance on exemptions from the registration requirements of the Securities Act, including the exemption provided by Section 4(a)(2) of the Securities Act and Regulation D and Regulation S promulgated thereunder (the "Private Offering"). Investors in our private offering are required to be "accredited investors" as defined in Regulation D of the Securities Act. Each investor in the Private Offering will purchase Shares pursuant to a subscription agreement entered into with us (a "Subscription Agreement"). The Fund reserves the right to conduct additional offerings of securities in the future in addition to the Private Offering. In addition, although the Fund intends to issue Shares (as defined herein) on a monthly basis, the Fund retains the right, if determined by it in its sole discretion, to accept subscriptions and issue Shares, in amounts to be determined by the Fund, more or less frequently to one or more investors for portfolio management, regulatory, tax or other reasons.

While a Shareholder will not know the NAV applicable on the effective date of the Share purchase, the Fund's NAV applicable to a purchase of Shares will be available generally within 20 business days after the last day of each month; at that time, the number of Shares based on that NAV and each Shareholder's purchase will be determined and Shares are credited to the Shareholder's account as of the effective date of the Share purchase. If investors wish to know the NAV prior to the subscription being accepted they must contact their financial advisor.

On April 10, 2025, upon Conversion, we admitted 16 shareholders (the "Initial Members") to the Fund, such Initial Members' existing limited partnership interests in the private fund converting to an equivalent amount of Shares of the Fund based on a NAV per Share of $25 upon Conversion, and accepted $241 million in commitments from the Initial Members to purchase Shares pursuant to Drawdown Subscription Agreements ("Commitments"), including $2 million committed by an affiliate of the Adviser. Closings (each, a "Closing") may occur on a monthly or intra-month basis, and, during the Interim Period, the Initial Members may have capital called by the Fund alongside monthly or intra-month Closings (or such other times as may be determined by the Adviser in its discretion).

Pursuant to the Drawdown Subscription Agreements, the Initial Members made Commitments to purchase Shares during the Interim Period. The Drawdown Subscription Agreements provide that the Initial Members are required to fund capital contributions to purchase Shares (each, a "Drawdown Purchase"), each time we deliver a drawdown notice, which we deliver at least 10 business days prior to the date on which contributions will be due (each, a "Capital Drawdown Date"). Drawdown Purchases will generally be made pro rata, in accordance with unfunded Commitments of all Initial Members. In addition, the Drawdown Subscription Agreements provide that we retain the right at our discretion to call Drawdown Purchases on a non-pro rata basis so that the assets of the Fund will not be considered "plan assets" under ERISA or the Plan Asset Regulations (each as defined below), or as otherwise necessary or desirable in order to comply with ERISA or any other applicable legal, contractual, regulatory, tax or similar regimes. Each Drawdown Purchase is made at a price per Share equal to our Per Share NAV as determined within 48 hours of the Capital Drawdown Date, excluding Sundays and holidays, of such sale, subject to certain exceptions and calculated in accordance with the Investment Company Act. No investor in our private placement will be required to invest more than the total amount of its Commitment.

An investor will be released from any obligation to purchase additional Shares on the earlier of (i) the date that such investor's Commitment is fully called and (ii) the end of the Interim Period.

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While the Fund expects each Subscription Agreement to reflect the terms and conditions summarized above, the Fund reserves the right to enter into Subscription Agreements that contain terms and conditions not found in the Subscription Agreements entered into with other investors, subject to applicable law. No investor in the Private Offering will be permitted to make an investment in the Fund on economic terms and conditions that are more favorable than the economic terms and conditions contained in the Subscription Agreements entered into with all other investors.

**Audax Private Debt, the Adviser, and the Administrator** 

*Audax Private Debt* 

Founded in 1999, Audax Group is a global investment business and a leading capital partner to middle market companies, with over $40 billion in AUM and offices in New York, Boston, San Francisco, and London. Audax Group has over 425 employees, including over 175 investment professionals, who manage over 500 current investments in middle market companies across private credit and private equity.<sup>3</sup>

*Our Adviser* 

Our investment activities will be managed by our Adviser, Audax PDB Management Company, LLC pursuant to the Advisory Agreement. See "*Item 1. Business*—*Advisory Agreement*." Our Adviser is a Delaware limited liability company and wholly-owned subsidiary of Audax Management Company (NY), LLC, the registered investment adviser for other Audax Private Debt entities. The Adviser, which was formed for the purpose of serving as investment adviser to the Fund, is a registered investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). The Adviser does not currently provide investment advisory services to any other Audax Private Debt entity. Audax Private Debt will provide the Adviser with a team of investment professionals who have substantial experience in credit origination and underwriting, including members of the Adviser's investment committee ("Investment Committee"). The Adviser expects to benefit significantly from Audax Private Debt's capabilities in sourcing, diligencing, underwriting and structuring potential investments, and monitoring portfolio companies. The Adviser will manage our day to day business affairs and manage our portfolio under the general oversight of our Board of Directors.

<sup>1</sup> As of December 31, 2024. AUM represents regulatory assets under management calculated as total gross assets plus undrawn equity commitments (less any amounts outstanding on lines of credit which are expected to be paid down using undrawn equity). 

<sup>2</sup> As of December 31, 2024. Capital raised across Audax Private Debt includes $18 billion of existing/anticipated leverage on certain Private Debt vehicles and does not include withdrawals and redemptions from certain open-end funds/accounts. 

<sup>3</sup> As of December 31, 2024. AUM represents regulatory assets under management calculated as total gross assets plus undrawn equity commitments (less any amounts outstanding on lines of credit which are expected to be paid down using undrawn equity). 

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The Adviser's duties related to investments are detailed in the Advisory Agreement, an investment advisory agreement between the Fund and the Adviser, including that our Adviser will be responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, evaluating investment opportunities, negotiating the terms and disposition of our investments and monitoring our investments and portfolio companies on an ongoing basis. Our Board of Directors is responsible for monitoring whether the Adviser is appropriately discharging its duties under the Advisory Agreement.

The Fund's assets and liabilities will be valued in accordance with the valuation policies and procedures of the Fund and the Adviser, as may be amended from time to time, a copy of which will be available upon request. Such valuations will be made in accordance with Rule 2a-5 under the Investment Company Act, the SEC rule governing the valuation of a BDC's portfolio investments, and U.S. GAAP. The Board has designated the Adviser as its "valuation designee" pursuant to Rule 2a-5 under the Investment Company Act (the "Valuation Designee"), and in that role the Adviser is responsible for performing fair value determinations relating to all of the Fund's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair value methodologies, in accordance with valuation policies and procedures that have been approved by the Fund's Board. Even though the Board of Directors designated the Adviser as its "valuation designee," the Board of Director's audit committee continues to be responsible for overseeing the processes for determining fair valuation.

<u>Investment Committee</u>

The purpose of the Investment Committee is to evaluate and approve all investments by our Adviser. The Investment Committee review process is intended to bring the diverse experience and perspectives of the committee members to the analysis and consideration of every investment. We believe this process provides consistency to our Adviser's investment philosophy and policies. The Investment Committee will also determine appropriate investment size and mandate ongoing monitoring requirements. No member of the Investment Committee will serve as the lead portfolio manager, and its members are equally responsible for the management of our portfolio.

Potential transactions will be reviewed on a regular basis. Members of the Investment Committee are encouraged to share information and views on credits with the deal team members early in their analysis. This process improves the quality of the analysis and enables the deal team members to work more efficiently. In addition to reviewing investments, the Investment Committee meetings will serve as a forum to discuss the committee members' credit market views and outlook.

<u>Portfolio Management</u>

The Adviser will review investment performance on a regular basis to evaluate whether each investment is delivering the expected results. For each investment, portfolio monitoring processes will measure the borrower's current and projected financial performance versus historical performance, with emphasis on financial results since the funding of the investment. As part of the Adviser's financial performance evaluation, it will monitor, among other items, the borrower's historical, current and projected covenant compliance. Additionally, the Adviser will maintain communication with other lenders, borrowers, and private equity sponsors, and manage any credit amendments or waivers on our behalf.

*Our Administrator* 

On April 10, 2025, we entered into an administration agreement with Audax Management Company (NY), LLC (the "Administration Agreement"), pursuant to which the Administrator provides administrative services to the Fund. Under the Administration Agreement, the Administrator will perform, or oversee the performance of administrative services necessary for the operation of the Fund, which include being responsible for the financial records which the Fund is required to maintain and preparing reports filed with the SEC. In addition, the

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Administrator will assist in determining and publishing the Fund's NAV, overseeing the preparation and filing of the Fund's tax returns and the printing and dissemination of reports to the Fund's shareholders, and generally overseeing the payment of the Fund's expenses and the performance of administrative and professional services rendered to the Fund by others. The principal executive office of our administrator is located at 320 Park Avenue, New York, NY 10022.

The Administrator, on behalf of us and at our expense, may retain one or more service providers as custodian, sub-administrator, and transfer agent for the Fund. All of the foregoing expenses will ultimately be borne by the Fund's Shareholders. The Adviser and the Board (as defined below) will be responsible for overseeing the activities of the custodian, sub-administrator, and transfer agent.

**The Board of Directors** 

Overall responsibility for the Fund's oversight rests with the Board of Directors of the Fund (the "Board" or "Board of Directors" and each member of the Board of Directors, a "Director"). We entered into the Advisory Agreement with the Adviser, pursuant to which the Adviser manages the Fund on a day-to-day basis. The Board is responsible for overseeing the Adviser and other service providers in our operations in accordance with the provisions of the Investment Company Act, the Fund's LLC Agreement and applicable provisions of state and other laws. The Adviser keeps the Board informed as to the Adviser's activities on our behalf and our investment operations and provide the Board with additional information as the Board may, from time to time, request. The Board is currently composed of seven members, four of whom are directors who are not "interested persons" of the Fund or the Adviser as defined in the Investment Company Act (the "Independent Directors"). Our Board does not currently have a designated lead Independent Director. The Board meets at regularly scheduled quarterly meetings each year. In addition, the Board may hold special in-person or telephonic meetings or informal conference calls to discuss specific matters that may arise or require action between regular meetings. As described below, the Board has established an Audit Committee and a Nominating and Corporate Governance Committee, and may establish ad hoc committees or working groups from time to time, to assist the Board in fulfilling its oversight responsibilities.

**Market Opportunity** 

Responsible for one third of U.S. GDP and employment, the U.S. middle market presents a rich opportunity set comprised of over 200,000 companies. Standalone, the U.S. middle market would rank as the third-largest economy in the world by GDP.<sup>4</sup> Additionally, the middle market has demonstrated resiliency during uncertain economic environments, including during the 2007-2009 financial crisis, when it added more than two million jobs. We believe that these dynamics are appealing to private equity sponsors, as is the fragmented nature of the middle market, which provides opportunities to grow companies organically and through acquisitions.

Companies in the middle market backed by private equity firms often seek the bespoke terms and flexibility offered by direct lenders. We believe we will benefit from Audax Private Debt's ability to capitalize on these dynamics, acting as a financing solutions provider for private equity sponsors that seek lasting relationships with their lenders. The Fund and the Adviser believe that Audax Private Debt's size, flexibility, and committed capital base makes it a desirable financing source in this segment of the market.

We intend to focus primarily on companies generating between $15 million and $100 million of EBITDA annually and we and the Adviser believe companies of this size have traditionally had a narrower set of financing options than their larger counterparts and often have favorable structural attributes, including more conservative leverage levels, higher yields, financial maintenance covenants, and other enhanced documentation provisions.

<sup>4</sup> Source: Year-End 2023 Middle Market Indicator, National Center for the Middle Market, World Bank, Bureau of Economic Analysis.

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**Competitive Strengths** 

The Fund believes that it will benefit from the significant scale and resources of Audax Private Debt, including but not limited to the benefits of its investment platform, sourcing strategies, and relationships with private equity firms. Certain highlights of Audax Private Debt's competitive strengths are summarized below:

***Cohesive and Experienced Investment Team.*** Audax Private Debt's team is comprised of 70 dedicated investment professionals across its origination, underwriting, capital markets and portfolio management functions, including 23 Managing Directors with an average of nearly 26 years of experience. The senior leadership team has a long history of working together focused exclusively on originating, underwriting and monitoring middle market investments. Audax Private Debt was established in 2000 by Kevin Magid, its current President. Other senior management team members include Rahman Vahabzadeh, Co-Head of Originated Debt, Steven Ruby, Co-Head of Originated Debt, and Michael McGonigle, Head of Senior Debt, who have worked at Audax Private Debt since 2001, 2003 and 2007, respectively. Additionally, many of the investment team's 23 Managing Directors have spent the substantial majority of their careers at Audax Private Debt and average over 14 years with the firm. We believe that the continuity and stability of Audax Private Debt's investment team is a competitive advantage.

***History of Low Losses.*** The Audax Private Debt platform operates under a disciplined investment framework that has remained consistent across multiple credit and economic cycles. Audax Private Debt's investment process begins by generating quality and diverse deal flow primarily through directly sourcing investment opportunities from private equity firms, followed by rigorous due diligence to evaluate each opportunity. Audax Private Debt targets companies in non-cyclical industries with leading market positions, attractive financial profiles, diversified business models, proven management teams, appropriate capital structures, and high-quality underwriting EBITDA. With a focus on capital preservation, Audax Private Debt seeks to minimize downside risk through its disciplined investment approach, rigorous due diligence, meaningful portfolio diversification, and proactive investments monitoring.

Demonstrating the effectiveness of its credit underwriting, Audax Private Debt's senior secured lending strategies have an aggregate realized loss ratio of 0.70% since inception, equating to 4 basis points per annum.<sup>5</sup>

***Broad Deal Sourcing Network Established over 25 years.*** We believe Audax Private Debt's proprietary direct origination capability is a competitive advantage that enables optimal asset selectivity. Audax Private Debt has established an extensive deal sourcing network since its inception in 2000, assessing almost 22,000 opportunities and providing debt capital to over 275 private equity sponsors across over 1,200 middle market transactions. Audax Private Debt has generated consistent deal flow by being a responsive and flexible provider of capital through various credit and economic cycles. Audax Private Debt's ability to provide multiple financing options (including senior debt, unitranche debt, and junior debt) has contributed to its ability to generate significant repeat business from its private equity clients and establish itself as a preferred source of debt capital.

The primary driver of Audax Private Debt's deal flow is its direct marketing effort to middle market private equity firms. Audax Private Debt has sourced opportunities from over 700 private equity sponsors over the past 25 years. These sponsors manage funds ranging primarily from $500 million to $5 billion in size, and they often

<sup>5</sup> As of December 31, 2024. "Aggregate Realized Loss Ratio", on any date of determination, is equal to the composite percentage of (a) the total par value of realized losses, including losses on restructured investments as well as the net impact of trading-related losses and gains, to (b) total dollars invested since inception, for all applicable accounts or funds within Audax Private Debt's senior secured lending strategies (i.e., accounts and/or funds investing primarily in first lien, senior secured debt). On a per annum basis, "loss ratio" is equal to the percentage of (a) the Aggregate Realized Loss Ratio to (b) the number of years Audax Private Debt has been actively investing in senior secured lending strategies. Actual losses of each individual vehicle or account will differ. Losses are not offset by interest income. Does not represent investment performance. 

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seek relationship-oriented financing sources with committed capital and a long-term investment perspective. In addition to its direct marketing effort, Audax Private Debt has long-standing relationships with investment banks, agents, brokers, and financial advisors that seek financing for their clients.

***Comprehensive Debt Capital Solutions***. We believe Audax Private Debt's scale and expertise in structuring financings across all levels of the capital structure are important competitive advantages for the Fund. Many Audax Private Debt professionals have spent the majority of their careers assessing leveraged financial transactions and have structured senior debt, junior debt, unitranche debt, high yield debt and preferred and common stock financings, among others. By combining these skills and depth of transaction experience with a mandate that allows for investment structuring flexibility, Audax Private Debt can tailor financing solutions to an issuer's specific needs, while remaining competitive with alternative sources of capital and consistent with the Fund's investment criteria. In addition, we believe Audax Private Debt's ability to provide significant commitment and hold sizes with respect to its financings in the middle market strengthens its value proposition to borrowers.

***Consistent Middle Market Focus.*** Since inception in 2000, the Audax Private Debt platform has deployed $45 billion into middle market businesses. Audax Private Debt has maintained this focus over the last 25 years, avoiding style drift despite significant growth across the Audax Private Debt platform.

Audax Private Debt's focus on the middle market for over two decades has been driven by what it believes to be the compelling risk-adjusted return opportunity that this segment of the market offers. Middle market loans generally have favorable structural attributes relative to loans to larger companies, including more conservative leverage levels, higher yields, financial maintenance covenants, and other enhanced documentation provisions. We believe these features of the middle market will result in advantageous conditions in which to pursue our investment objectives of generating current income and, to a lesser extent, long-term capital appreciation.

***Audax Group Platform***. A capital provider for the middle market since 1999, Audax Group currently has over $40 billion of AUM across Audax Private Debt and Audax Private Equity.<sup>6</sup> Audax Group has over 425 employees, including over 175 investment professionals, who manage over 500 current investments in middle market companies. Through its team-oriented investment process, Audax Group professionals leverage their collective insights and expertise across the capital structure during the due diligence, underwriting, and monitoring stages of an investment. In addition to having industry-specific knowledge and contacts, Audax Group professionals have backgrounds in operations, strategy consulting, and finance, and extensive experience in leveraged finance transactions. We believe the combination of those experiences allows Audax Private Debt to understand the credit markets from both a private debt and a private equity perspective.

**Investment Selection** 

When identifying prospective investment opportunities, the Adviser intends to rely on fundamental credit analysis in order to preserve the Fund's capital and minimize downside risk. The Adviser expects to recommend that the Fund invest in companies that demonstrate the following characteristics:

***Leading Market Position.*** The Adviser intends to recommend investments in established businesses with leading market positions that are defensible against existing or potential new entrants. The Adviser will target companies that have some or all of the following attributes: low cost and flexible manufacturing infrastructure, product or service expertise, proprietary technology or distribution capability, and differentiated customer relationships.

***Attractive Financial Profile.*** The Adviser intends to recommend investments in companies that have demonstrated organic revenue growth, margin stability, and cash flow generation capability through various

<sup>6</sup> As of December 31, 2024. AUM represents regulatory assets under management calculated as total gross assets plus undrawn equity commitments (less any amounts outstanding on lines of credit which are expected to be paid down using undrawn equity). 

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economic cycles. The Adviser will favor companies with recurring revenues and limited capital expenditures or working capital requirements which will inherently reduce credit risk.

***Diversified Business Model.*** The Adviser, on behalf of the Fund, intends to target companies possessing multiple sources of cash flow seeking to minimize risk tied to a single product, customer, end market, geography, regulation, technology, or commodity input.

***Non-Cyclical Industries.*** The Adviser intends to recommend that the Fund generally avoid making investments in companies that operate in highly cyclical industries, including Tier 1 auto supply, travel & leisure, trade shows, retail, and restaurants. For any potential investment in an industry with mild or moderate cyclical demand, the Adviser's underwriting focuses on companies that have appropriate capitalization and liquidity to withstand a potential downturn.

***Experienced Management Team.*** The Adviser, on behalf of the Fund, seeks to partner with management teams that have: (i) played a key role in growing their businesses; (ii) a firm grasp of competitive dynamics and business trends affecting their companies' industry segments; (iii) demonstrated an ability to apply sound cost management techniques; (iv) a well-defined vision and strategy for their companies' future success; and (v) the depth to withstand departures and generational changes.

***Strong Private Equity Sponsor & Aligned Management Team Interests.*** The Adviser generally believes that it is essential for companies in which it invests to have a strong private equity sponsor and a senior management team with equity interests and compensation plans aligned with its objectives. The Adviser intends to recommend investments primarily in situations where both the sponsor and management have meaningful investments in the company.

***Appropriate Capitalization.*** The Adviser intends to recommend investments in companies that are prudently leveraged relative to current and expected cash flow generation and underlying asset and enterprise value.

***High Quality Underwriting EBITDA.*** A critical aspect of the Adviser's credit analysis is the detailed review of proposed addbacks and adjustments to EBITDA, which are common in numerous middle market change-of-control or recapitalization transactions.

**Investment Process** 

***Origination****.* The primary driver of Audax Private Debt's deal flow is its direct marketing effort to middle market private equity firms. In addition to its direct marketing effort, Audax Private Debt has long-standing relationships with investment banks, agents, deal brokers, and financial advisors that seek financing for their clients. The Adviser believes Audax Private Debt's 25-year history and extensive network of private equity firms will provide significant access to investment opportunities for the Fund.

***Initial Screening Process****.* Once a potential transaction is sourced, it undergoes an initial screen to determine the suitability of the investment. This assessment includes a review of the borrower's industry, its relative position within that industry and financial and operating metrics, as well as transaction-specific items such as the proposed capital structure, deal size, and expected pricing. If the results of this initial screen are positive, the next step is to proceed with detailed transaction due diligence and analysis.

***Credit Analysis / Due Diligence****.* The Adviser seeks to employ a disciplined and rigorous process for all credit investments. Audax Private Debt's investment professionals conduct an in-depth assessment of a company's management team, corporate strategy, and product lines or services offered. Audax Private Debt also evaluates competitive industry dynamics, paying close attention to potential risks and prospects for market growth. Areas of focus typically include, but are not limited to, market position, visibility of revenue, concentration of customers or suppliers, cost competitiveness, pricing or margin risks, and operating risks outside

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of a company's control (e.g., commodity prices, government reimbursement, foreign supply chain). The Adviser will also assess the overall macroeconomic environment and financial markets in structuring, pricing and evaluating opportunities. Third parties will often be involved in the Audax Private Debt due diligence process, whether they are hired by Audax Private Debt or by the private equity sponsor in a transaction.

***Investment Committee Process.*** After determining a potential investment fits our investment strategy, it will be introduced to the Adviser's Investment Committee, where the Audax Private Debt investment team presents a summary of its credit research, due diligence, analysis, and preliminary conclusions. During this initial presentation, the Investment Committee evaluates the credit, raises potential risks or concerns, and suggests follow-up analyses for the deal team to conduct as they continue to assess the opportunity. As additional extensive due diligence is performed by Audax Private Debt's investment team, potential investment opportunities are presented to the Investment Committee on multiple occasions to address all key questions and topics noted during previous discussions. Investment Committee meetings typically take place during regularly scheduled, bi-weekly sessions, though the Investment Committee and deal team may convene on an as needed basis to provide feedback to our private equity sponsor clients in a timely manner.

Only upon completion of thorough due diligence and after multiple screenings with its Investment Committee will the Audax Private Debt investment team seek final approval for an investment. Final materials include a summary of the opportunity, investment rationale, risks and mitigants, detailed credit analyses, industry research, and key takeaways from third-party diligence commissioned by Audax Private Debt's private equity sponsors, among other content. Upon review of the final committee materials, and taking into account viewpoints of Audax Private Debt's investment team and other Audax Private Debt senior professionals, the Investment Committee will make a final investment decision.

***Structuring and Execution.*** Once a prospective investment has been approved by the Investment Committee, the Audax Private Debt investment team will work with the company's management team, the financial sponsor, and if applicable, any other lenders in the capital structure, to finalize the structure and terms of the investment in accordance with the terms and conditions approved by the Investment Committee. After an agreement is reached, the Audax Private Debt investment team will properly document the investment.

***Monitoring.*** Post-investment, Audax Private Debt actively monitors portfolio companies by analyzing ongoing financial reporting and maintaining regular dialogue with management teams and private equity sponsors. Audax Private Debt believes the combination of assessing financial metrics and maintaining relationships with key stakeholders is critical in effectively monitoring investments. Portfolio companies will generally be required to provide monthly or quarterly financial and operating reports and covenant compliance certificates. Audax Private Debt also seeks to monitor its debt investments through active participation in strategic discussions with company management and sponsors. When feasible, by including affirmative financial maintenance covenants in our borrowers' credit documentation, Audax Private Debt often receives early insight into material changes to the business prospects and strategic direction of our portfolio companies. Lastly, Audax Private Debt regularly reviews industry research from independent third-party sources, and conducts portfolio reviews to identify investments that may require closer credit monitoring or a change in valuation.

Audax Private Debt's monitoring process also incorporates risk ratings that standardize the way it assesses credit risk across individual loans. Investments are scored across various credit metrics and then assigned a risk rating between 1-4 (ascending risk) according to relative severity.

**Investment Valuation Process** 

The Fund's assets and liabilities will be valued in accordance with the valuation policies and procedures of the Fund and the Adviser, as may be amended from time to time, a copy of which will be available upon request. Such valuations will be made in accordance with Rule 2a-5 under the Investment Company Act, the SEC rule governing the valuation of a BDC's portfolio investments, and U.S. GAAP. The Board has designated the

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Adviser as its "valuation designee" pursuant to Rule 2a-5 under the Investment Company Act, and in that role the Adviser is responsible for performing fair value determinations relating to all of the Fund's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair value methodologies, in accordance with valuation policies and procedures that have been approved by the Fund's Board. Even though the Board designated the Adviser as its "valuation designee," the Board's audit committee continues to be responsible for overseeing the processes for determining fair valuation. In making valuation determinations, the Adviser, as Valuation Designee, may be deemed subject to a conflict of interest, as the valuation of such assets and liabilities affects its compensation. There is no guarantee that the value determined with respect to a particular asset or liability by the Adviser will represent the value that will be realized by the Fund on the eventual disposition of the related investment or that would, in fact, be realized upon an immediate disposition of the investment.

When market prices are readily available, the Adviser shall value the Company's investments at the current market price. Where it is possible to obtain independent third party market quotes for securities, the Adviser will use these quotes to obtain a value for those securities. The Adviser obtains marks for marketable securities from third party vendors whom it believes to be reliable. When obtaining such quotes or marks, the Adviser will determine whether the quote obtained is sufficient according to GAAP to determine the fair value of the security. If determined adequate, the Adviser will use the quote obtained. If such quote or marks are deemed unreliable, the Adviser will then use the mid-point of the "bid" and the "asked" quote for the security to calculate the Company's current fair value.

The Fund's investments are expected to include loans and other instruments that do not have readily ascertainable market prices. Assets that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Adviser. The Adviser will determine fair value for those investments through a valuation process that will be conducted at the end of each fiscal quarter by the valuation committees of our Adviser with the assistance of the Adviser's investment and management personnel, finance and compliance teams, third-party valuation agents, and guidance from outside counsel, and reviewed by the audit committee of our Board. The Adviser, as Valuation Designee, intends to retain independent providers of financial advisory and investment banking services to assist the Valuation Designee by performing certain limited third-party valuation services. In connection with that determination, the Adviser will prepare portfolio company valuations using sources and/or proprietary models depending on the availability of information on our assets and the type of asset being valued, all in accordance with the valuation policies and procedures of the Fund and the Adviser. The participation of the Adviser in our valuation process could result in a conflict of interest, since the management fee paid to the Adviser (the "Management Fee") is based in part on the Fund's net assets. In addition, the Investment Company Act and Rule 2a-5 thereunder impose requirements on the Fund and Adviser in respect of the valuation of the Fund's assets that the Fund and the Adviser believe significantly mitigate any such potential conflicts, including, for example, that the Fund's portfolio managers may not exert undue influence on valuation determinations.

The Adviser's fair value methodology accords with the fair value principles established by FASB Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurement ("ASC 820"). ASC 820 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. ASC 820 also provides guidance regarding a three-tier fair value hierarchy, which prioritizes information used to measure fair value and the effect of fair value measurements on earnings and provides for enhanced disclosures determined by the level within the hierarchy of information used in the valuation. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, which includes inputs such as quoted prices for similar securities in active markets and quoted prices for identical securities where there is little or no activity in the market; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The Adviser determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly market is available for the market participants at the measurement date. When

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available, the Adviser bases the fair value of the Fund's investments on directly observable market prices or on market data derived from comparable assets. The Adviser's valuation policy considers the fact that no ready market exists for many of the securities in which the Fund invests and that fair value for the Fund's investments must be determined using unobservable inputs. The Adviser's valuation policy is intended to provide a consistent basis for determining the fair value of the Fund's portfolio.

The Adviser will utilize the following multi-step process each quarter in determining fair value for the Fund's investments for which market quotations are not readily available:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First, the Adviser's investment professionals responsible for the portfolio investment and other senior
members of the Adviser's investment and management team, with oversight from the Adviser's finance team, will make initial valuations of each investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Second, the Adviser's investment professionals and management team, with oversight by the Adviser's
finance and compliance team, will document the preliminary valuation conclusions and oversee sample testing of valuations with third-party valuation agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Third, the preliminary valuation conclusions will be presented to the Adviser's valuation committees as
relevant, for consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fourth, the Adviser's valuation committees will discuss the recommended valuations and determine, in good
faith, the fair value of each investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fifth, the valuation determinations of the Adviser's valuation committees will be presented to the Adviser
and then shared with the Fund's chief executive officer and chief financial officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sixth, the Adviser will provide certain quarterly and annual reports to the Board.

The types of factors that the Adviser may take into account in determining the fair value of the Fund's investments generally include, as relevant, but are not limited to: the nature and realizable value of any collateral; call features, put features and other relevant terms of debt; the portfolio company's ability to make payments; the portfolio company's actual and expected earnings and discounted cash flow; prevailing interest rates for like securities and expected volatility in future interest rates; the markets in which the issuer does business and recent economic and/or market events; comparisons to publicly traded securities; and other relevant factors. When an external event such as a purchase transaction, public offering or subsequent equity sale occurs, the Adviser will consider the pricing indicated by the external event in its valuation of the portfolio investment. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations currently assigned.

**Advisory Agreement** 

*The description below of the Advisory Agreement is only a summary and is not necessarily complete. The description set forth below is qualified in its entirety by reference to the Advisory Agreement attached as an exhibit to this Registration Statement.* 

The Fund has entered into the Advisory Agreement with the Adviser.

Subject to the overall supervision of our Board and in accordance with the Investment Company Act, the Adviser will manage our day-to-day operations and provide investment advisory services to us. Under the terms of the Advisory Agreement, our Adviser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determines the composition of our portfolio, the nature and timing of the changes to our portfolio and the manner
of implementing such changes in accordance with our investment objective, policies and restrictions;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• identifies and evaluates investment opportunities and makes investment decisions for us, including negotiating
the terms of investments in, and dispositions of, portfolio securities and other instruments on our behalf; monitors the investments we make;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• determines the securities and other assets that we will purchase, retain or sell;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performs due diligence on prospective portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• assists the Board with its valuation of our portfolio companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• directs investment professionals of the Adviser to provide managerial assistance to portfolio companies of the
Fund as requested by the Fund, from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• exercises voting rights in respect of portfolio securities and other investments for us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• arranges for financing facilities and other forms of leverage in the event that we determine to acquire debt
financing, subject to the oversight and approval of the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• provides us with such other investment advisory, research and related services as we may, from time to time,
reasonably require for the investment of our funds.

The Adviser's services under the Advisory Agreement are not exclusive, and it is free to furnish similar services to other entities, so long as its services to us are not impaired.

In accordance with the Advisory Agreement, we will pay the Adviser certain fees as compensation for its services, such fees consisting of a Base Management Fee and an Incentive Fee. The cost of both the Base Management Fee and the Incentive Fee will be borne by our Shareholders.

*Base Management Fee* 

The Base Management Fee is calculated at an annual rate of 1.25% of our net assets as of the beginning of the first business day of the month, payable monthly in arrears. For the first calendar month in which the Fund has operations, net assets will be measured as the beginning net assets as of the date of Conversion.

*Incentive Fee* 

The Incentive Fee will consist of two components that are independent of each other, with the result that one component may be payable even if the other is not. A portion of the Incentive Fee is based on a percentage of the Fund's income and a portion is based on a percentage of the Fund's capital gains, each as described below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Incentive Fee on Pre-Incentive Fee Net Investment Income.</u> The portion based on the Fund's income is based on Pre-Incentive Fee Net Investment Income Returns. "Pre-Incentive Fee Net Investment Income Returns" means, as the context requires, either the dollar value of, or percentage rate of return on the value of the Fund's net assets at the end of the immediate preceding quarter from, interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, diligence and consulting fees or other fees that the Fund receives from portfolio companies) accrued during the calendar quarter, minus the Fund's operating expenses accrued for the quarter (including the Base Management Fee, expenses payable under the Administration Agreement, and any interest expense or fees on any credit facilities or outstanding debt and distributions paid on any issued and outstanding preferred shares, but excluding the Incentive Fee and any distribution or shareholder servicing fees).

Pre-Incentive Fee Net Investment Income Returns include, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with pay-in-kind interest and zero coupon securities), accrued income that the Fund has not yet received in cash. Pre-Incentive Fee Net Investment Income Returns do not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

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Pre-Incentive Fee Net Investment Income Returns, expressed as a rate of return on the value of the Fund's net assets at the end of the immediate preceding quarter, is compared to a hurdle of 1.5% per quarter (6.0% annualized) (the "Hurdle Rate").

The Fund will pay the Adviser an incentive fee quarterly in arrears with respect to the Fund's Pre-Incentive Fee Net Investment Income Returns in each calendar quarter as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no incentive fee based on Pre-Incentive Fee Net Investment Income Returns
in any calendar quarter in which the Fund's Pre-Incentive Fee Net Investment Income Returns do not exceed the Hurdle Rate of 1.5%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of the dollar amount of the Fund's Pre-Incentive Fee Net
Investment Income Returns with respect to that portion of such Pre-Incentive Fee Net Investment Income Returns, if any, that exceeds the Hurdle Rate but is less than a rate of return of 1.7143% (6.8571%
annualized). This is referred to as Pre-Incentive Fee Net Investment Income Returns (which exceed the Hurdle Rate but are less than 1.7143%) that constitute the "catch-up"; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12.5% of the dollar amount of the Fund's Pre-Incentive Fee Net
Investment Income Returns, if any, that exceed a rate of return of 1.7143% (6.8571% annualized).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Incentive Fee on Capital Gains.</u> The second component of the Incentive Fee (the "capital gains incentive fee") is payable at the end of each calendar year in arrears.

The amount payable equals:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 12.5% of cumulative realized capital gains from inception through the end of such calendar year, computed net of
all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid incentive fee on capital gains as calculated in accordance with GAAP.

Each year, the fee paid for the capital gains incentive fee is net of the aggregate amount of any previously paid capital gains incentive fee for all prior periods. The Fund will accrue, but will not pay, a capital gains incentive fee with respect to unrealized appreciation because a capital gains incentive fee would be owed to the Adviser if the Fund were to sell the relevant investment and realize a capital gain. In no event will the capital gains incentive fee payable pursuant to this Agreement be in excess of the amount permitted by the Advisers Act, as amended, including Section 205 thereof.

The fees that are payable under this Agreement for any partial period will be appropriately prorated.

**Administration Agreement and Administrative Fee** 

The description below of the Administration Agreement is only a summary and is not necessarily complete. The description set forth below is qualified in its entirety by reference to the Administration Agreement attached as an exhibit to this Registration Statement.

The Fund has also entered into an Administration Agreement with Audax Management Company (NY), LLC, acting in its capacity as "Administrator," pursuant to which the Administrator provides administrative services to the Fund. Under the Administration Agreement, the Administrator will perform, or oversee the performance of administrative services necessary for the operation of the Fund, which include being responsible for the financial records which the Fund is required to maintain and preparing reports filed with the SEC. In addition, the Administrator will assist in providing the Fund with office facilities, equipment, clerical, bookkeeping, compliance, and record keeping services at such facilities, determining and publishing the Fund's NAV, overseeing the preparation and filing of the Fund's tax returns and the printing and dissemination of reports to the Fund's shareholders, and generally overseeing the payment of the Fund's expenses and the performance of administrative and professional services rendered to the Fund by others.

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We will reimburse the Administrator for its allocable portion of the costs and expenses incurred by the Administrator for overhead in performance by the Administrator of its duties under the Administration Agreement, including the cost of facilities, office equipment and the Fund's allocable portion of cost of compensation and related expenses of its Chief Financial Officer and Chief Compliance Officer and their respective staffs, as well as any costs and expenses incurred by the Administrator relating to any administrative or operating services provided by the Administrator to the Fund. We anticipate that such costs will be reflected as an administrative fee in the Fund's statements of operations.

**Certain Terms of the Advisory Agreement and the Administration Agreement** 

Each of the Advisory Agreement and the Administration Agreement have been approved by the Board. Unless earlier terminated as described below, each of the Advisory Agreement and the Administration Agreement will remain in effect for a period of two years from the date it first becomes effective and will remain in effect from year-to-year thereafter if approved annually by a majority of the Board or by the holders of a majority of our outstanding voting securities and, in each case, a majority of the Independent Directors. The Fund may terminate the Advisory Agreement or the Administration Agreement, without payment of any penalty, upon 60 days' written notice. The decision to terminate either agreement may be made by a majority of the Board or the shareholders holding a majority of our outstanding voting securities, which means the lesser of (1) 67% or more of the voting securities present at a meeting if more than 50% of the outstanding voting securities are present or represented by proxy, or (2) more than 50% of the outstanding voting securities. In addition, the Adviser may terminate the Advisory Agreement or the Administrator may terminate the Administration Agreement, without payment of any penalty, upon 60 days' written notice. The Advisory Agreement will automatically terminate within the meaning of the Investment Company Act and related SEC guidance and interpretations in the event of its assignment. See "*Item 1A. Risk Factors—Risks Related to Our Business and Structure—Our ability to achieve our investment objective depends on our Adviser's ability to manage and support our investment process. If our Adviser were to lose its key professional(s), our ability to achieve our investment objective could be significantly harmed.*"

The Adviser and the Administrator will not be liable for any action taken or omitted to be taken in connection with the performance of any of its duties or obligations under the Advisory Agreement and Administration Agreement, respectively, or otherwise as our investment adviser or administrator, respectively; provided, that the Adviser and Administrator will not be protected against any liability to the Fund or its shareholders to which the Adviser or Administrator would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence on its part in the performance of its duties or by reason of the reckless disregard of its duties and obligations ("disabling conduct"). Each of the Advisory Agreement and the Administration Agreement provide that, absent disabling conduct, each of our Adviser and our Administrator, as applicable, and its officers, managers, partners, agents, employees, controlling persons, members and any other person or entity affiliated with it will be entitled to indemnification from us for any damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) arising from the rendering of our Adviser's services under the Advisory Agreement and our Administrator's services under the Administration Agreement or otherwise as adviser or administrator for us. The Adviser and the Administrator will not be liable under their respective agreements with us or otherwise for any loss due to the mistake, action, inaction, negligence, dishonesty, fraud or bad faith of any broker or other agent.

**Expense Support and Conditional Reimbursement Agreement** 

We have entered into an Expense Support and Conditional Reimbursement Agreement (the "Expense Support Agreement") with the Adviser. The Adviser may elect to pay certain of our expenses on our behalf (each, an "Expense Payment"). In making an Expense Payment, the Adviser will designate, as it deems necessary or advisable, what type of expense it is paying (including, whether it is paying organizational or offering expenses); provided that no portion of the payment will be used to pay any interest expense or shareholder servicing and/or distribution fees of the Fund. Any Expense Payment that the Adviser has committed to pay must

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be paid by the Adviser to the Fund in any combination of cash or other immediately available funds no later than forty-five (45) days after such commitment was made in writing, and/or offset against amounts due from us to the Adviser or its affiliates.

Following any calendar month or quarter, as applicable, in which Available Operating Funds (as defined below) exceed the cumulative distributions accrued to the Fund's Shareholders based on distributions declared with respect to record dates occurring in such calendar month or quarter, as applicable (the amount of such excess being hereinafter referred to as "Excess Operating Funds"), the Fund shall pay such Excess Operating Funds, or a portion thereof, to the Adviser until such time as all Expense Payments made by the Adviser to the Fund within three years prior to the last business day of such calendar month or quarter, as applicable, have been reimbursed. Any payments required to be made by the Fund pursuant to this paragraph shall be referred to as a "Reimbursement Payment." For purposes of the Expense Support Agreement, "Available Operating Funds" means the sum of (i) the Fund's net investment company taxable income (including net short-term capital gains reduced by net long-term capital losses), (ii) the Fund's net capital gains (including the excess of net long-term capital gains over net short-term capital losses) and (iii) dividends and other distributions paid to the Fund on account of investments in portfolio companies (to the extent such amounts listed in clause (iii) are not included under clauses (i) and (ii) above).

The amount of the Reimbursement Payment for any calendar month or quarter, as applicable, shall equal the lesser of (i) the Excess Operating Funds in such calendar month or quarter, as applicable, and (ii) the aggregate amount of all Expense Payments made by the Adviser to the Fund within three years prior to the last business day of such calendar month or quarter, as applicable, that have not been previously reimbursed by the Fund to the Adviser; provided that the Adviser may waive its right to receive all or a portion of any Reimbursement Payment in any particular calendar month or quarter, as applicable, in which case such waived amount will remain unreimbursed Expense Payments reimbursable in future months pursuant to the terms of the Expense Support Agreement.

No Reimbursement Payment for any calendar month or quarter, as applicable, will be made if: (1) the "Effective Rate of Distributions Per Share" (as defined below) declared by the Fund at the time of such proposed Reimbursement Payment is less than the Effective Rate of Distributions Per Share at the time the Expense Payment was made to which such Reimbursement Payment relates, or (2) the Fund's "Operating Expense Ratio" (as defined below) at the time of such proposed Reimbursement Payment is greater than the Operating Expense Ratio at the time the Expense Payment was made to which such Reimbursement Payment relates. Pursuant to the Expense Support Agreement, "Effective Rate of Distributions Per Share" means the annualized rate (based on a 365 day year) of regular cash distributions per share exclusive of returns of capital, distribution rate reductions due to distribution and shareholder fees, and declared special dividends or special distributions, if any. The "Operating Expense Ratio" is calculated by dividing Operating Expenses, less organizational and offering expenses, base management and incentive fees owed to the Adviser, and interest expense, by the Fund's average net assets over the applicable period.

The Fund's obligation to make a Reimbursement Payment shall automatically become a liability of the Fund on the last business day of the applicable calendar month or quarter, as applicable, except to the extent the Adviser has waived its right to receive such payment for the applicable month or quarter, as applicable. As of the date of this registration statement, the Adviser has paid on our behalf expenses in an amount totaling approximately $2,900,000 with an additional $1,500,000 in accrued expenses. There can be no assurance that the Adviser will be reimbursed for such amount or future amounts paid, and the Adviser will only be reimbursed in accordance with the terms of the Expense Support Agreement.

**Share Repurchase Program** 

We do not intend to list our Shares on a securities exchange and do not expect there to be a public market for our Shares. As a result, if you purchase our Shares, your ability to sell your Shares will be limited.

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Beginning no later than the first full calendar quarter following the one year anniversary of the Fund's election to be regulated as a BDC, the Fund intends to commence a share repurchase program in which, at the discretion of our Board, it may repurchase, in each quarter, up to 5% of the NAV of its Shares outstanding (either by number of shares or aggregate NAV) as of the close of the previous calendar quarter. The Fund's Board may amend, suspend or terminate the share repurchase program at any time if it deems such action to be in the Fund's best interest and the best interest of the Shareholders. As a result, share repurchases may not be available each quarter. The Fund intends to conduct such repurchase offers in accordance with the requirements of Rule 13e-4 promulgated under the Exchange Act and the Investment Company Act.

**Distribution Reinvestment Plan** 

The Fund generally intends to distribute substantially all of its available earnings annually by paying distributions on a quarterly basis, as determined by the Board in its discretion Additionally, we have adopted a distribution reinvestment plan, pursuant to which all cash distributions declared by the Board on behalf of Shareholders who do not elect to receive their distributions in cash will be reinvested in Shares of the Fund. As a result, if the Board authorizes, and we declare, a cash dividend or other distribution, then our Shareholders who have not opted out of our distribution reinvestment plan will have their cash distributions automatically reinvested in additional shares as described below, rather than receiving the cash dividend or other distribution. Distributions on fractional shares will be credited to each participating shareholder's account to three decimal places.

A participating shareholder will receive an amount of Shares equal to the total dollar amount of the dividend or distribution on that participant's Shares divided by the Per Share NAV as of the as of the effective date of the monthly share purchase (unless the Board determines to use the NAV per share as of another time).

We intend to use primarily newly issued Shares to implement the plan. Shares issued under the dividend reinvestment plan will not reduce outstanding Capital Commitments.

No action is required on the part of a registered shareholder to have his, her or its cash dividend or other distribution reinvested in our Shares. Shareholders can elect to "opt out" of the Fund's distribution reinvestment plan and elect to receive its entire dividend or a portion of its distribution in cash at any time by notifying Computershare Trust Company (the "Plan Administrator"), the Fund's Plan Administrator, in writing. Such notice must be received by the Plan Administrator 10 business days in advance of the first calendar day of the next month in order for a Participant's termination to be effective for such month. Shares purchased under the plan will be registered in the name of the Plan Administrator or an affiliated nominee and credited to the participants' respective accounts under the Plan.

The plan is terminable by the Fund upon notice in writing mailed to each Shareholder of record at least 30 days prior to any record date for the payment of any cash dividend or distribution by the Fund. A participant may terminate participation in the plan at any time, without penalty, by delivering notice in writing to the Plan Administrator 10 days prior to the first calendar day of the month the participant would like the termination to be effective of. If a participant terminates plan participation, all shares, including fractional shares, will continue to remain in book-entry for in the participant's account after withdrawal or termination, and future distributions will be distributed to the Shareholder in cash.

**Term** 

The Fund is expected to be non-exchange traded, meaning its Shares are not expected to be listed for trading on a stock exchange or other securities market. The Fund is also expected to be a perpetual-life BDC, meaning it is an investment vehicle of indefinite duration, whose Shares are intended to be sold by the Fund on a continuous basis at a price generally equal to the Fund's monthly NAV per share. See "*Item 9. Market Price Of And Distributions On The Registrant's Common Equity And Related Shareholder Matters—Valuation of Portfolio Securities.*"

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We believe that the perpetual nature of the Fund enables us to execute a patient and opportunistic strategy and be able to invest across different market environments. This may reduce the risk of the Fund being a forced seller of assets in market downturns compared to non-perpetual funds. While the Fund may consider a liquidity event (e.g., a merger or sale) at any time in the future, we currently do not intend to undertake a liquidity event, and we are not obligated by our charter or otherwise to effect a liquidity event at any time.

**Competition** 

We will compete for investments with a number of capital providers, including BDCs, other investment funds (including private debt and equity funds and venture capital funds), special purpose acquisition company sponsors, investment banks with underwriting activities, hedge funds that invest in private investments in public equities, traditional financial services companies such as commercial banks, and other sources of financing, including the broadly syndicated loan market and high yield capital market. Many of these capital providers have greater financial and managerial resources than we do. In addition, many of our competitors are not subject to the regulatory restrictions that the Investment Act imposes on us as a BDC. For additional information concerning the competitive risks we expect to face, see "*Item 1A. Risk Factors*—*Risks Related to Our Business and Structure—We may face increasing competition for investment opportunities, which could delay deployment of our capital, reduce returns and result in losses*."

**Allocation of Investment Opportunities** 

***General***

The Adviser and its affiliates manage investments similar to the Fund's investments and may allocate relevant investment opportunities among the Fund and another investment fund, vehicle or account managed by the Audax Group (collectively, the investment funds, vehicles and accounts managed by the Audax Group are the "Audax Vehicles"). An affiliate of the Adviser received an exemptive order from the SEC, on November 7, 2018 (the "Order"), that permits us, among other things, to co-invest with certain other persons, including certain affiliates of the Adviser and certain funds managed and controlled by the Adviser and its affiliates, subject to certain terms and conditions. Audax Group has applied for an amended exemptive order from the SEC that, if granted (the "Amended Relief"), would allow the Fund to co-invest alongside other Audax Private Debt affiliates, and would permit the Fund greater flexibility to negotiate the terms of co-investments if its Board determines that it would be advantageous for it to do so, see "*Item 1. Business—Allocation of Investment Opportunities—Co-Investment Relief.*" However, there is no guarantee that Amended Relief will be granted.

Subject to the terms of the Order, or, as applicable, other Investment Company Act restrictions on co-investments with affiliates, the Adviser will offer the Fund the right to participate in all investment opportunities that fall within its then current investment objectives and strategies as well as regulatory requirements and other relevant factors. Such offers are subject to the exception that, in accordance with the Adviser's code of ethics and the Adviser's allocation policy and procedures, the Fund will not participate in each individual opportunity but will, on an overall basis, be entitled to participate equitably with other Audax Vehicles. The Fund's Board will regularly review the Adviser's allocation policy and procedures. Where the Fund and one or more Audax Vehicles co-invest, subject to the terms of the Order and the Investment Company Act, each is expected to participate in an investment based on its relative available capital, subject to adjustment for legal, tax, structuring, regulatory or other considerations, and taking into account, among other things, overall capital commitments, diversification considerations and investment mandates applicable to the Fund and such vehicles. Subject to the terms of the Order and the Investment Company Act, Audax Private Debt also reserves the right to make independent decisions about when the Fund and other Audax Vehicles should purchase and sell investments. Subject to the terms of the Order and the Investment Company Act, the Fund may invest in opportunities in which other Audax Vehicles (i) have invested, (ii) are contemplating an investment or (iii) have decided not to invest and likewise, other Audax Vehicles may invest in opportunities in which the Fund (i) has invested, (ii) is contemplating an investment or (iii) has declined to invest. The Fund will not receive priority

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allocations of eligible investments ahead of other Audax Vehicles, and the Fund's Board will regularly review the Adviser's allocation policy and procedures.

Certain provisions of the Investment Company Act will prohibit the Fund from engaging in transactions with Audax Private Debt and its affiliates; however, unregistered funds also managed by Audax Private Debt are not prohibited from the same transactions. The Investment Company Act also imposes significant limits on co-investments with affiliates of the Fund. Audax Private Debt will not cause the Fund to engage in investments alongside affiliates in private placement securities that involve the negotiation of certain terms of the private placement securities to be purchased (other than price-related terms) unless in compliance with the Order or unless such investments are not prohibited by Section 17(d) of the Investment Company Act or interpretations of Section 17(d) as expressed in SEC no-action letters or other available guidance. Once Audax Private Debt and the Fund receive the Amended Relief from the SEC to engage in certain privately negotiated investments, such Amended Relief will further expand the Fund's ability to co-invest alongside its affiliates. However, the Amended Relief will contain certain conditions that may limit or restrict the Fund's ability to participate in such negotiated investments or participate in such negotiated investments to a lesser extent. Further, there is no guarantee that the Amended Relief will be granted. An inability to receive the desired allocation to potential investments may adversely affect the Fund's performance.

***Co-Investment Relief***

The Investment Company Act generally prohibits BDCs from entering into negotiated co-investments with affiliates absent an exemptive relief order from the SEC. As discussed above, Audax Private Debt currently has an exemptive Order from the SEC, which permits us to enter into certain negotiated co-investment transactions alongside Audax Private Debt and/or other Audax Vehicles, and the Fund and the Adviser have applied for Amended Relief from the SEC. If the Amended Relief is granted, we will be permitted additional flexibility to co-invest with Audax Private Debt and its affiliates if certain requirements are met. However, there is no guarantee that the Amended Relief will be granted.

With co-investments, there are expected to be circumstances where an amount that would otherwise have been invested by the Fund is instead allocated to co-investors (who may or may not be shareholders of the Fund or investors in other accounts managed by Audax Private Debt and any other advisory affiliates). Each co-investment opportunity (should any exist) is likely to be different, and allocation of each such opportunity will depend on the facts and circumstances specific to that unique situation (e.g., timing, industry, size, geography, asset class, projected holding period, exit strategy and counterparty). Different situations will require that the various facts and circumstances of each opportunity be weighted differently, as the Adviser deems relevant to such opportunity.

In addition, the Adviser and/or its affiliates will in certain circumstances be incentivized to offer certain potential co-investors opportunities to co-invest because the extent to which any such co-investor participates in (or is offered) co-investment opportunities may impact the amount of performance-based compensation and/or management fees or other fees paid by the co-investor.

The Adviser believes that co-investments by us and other funds sponsored or managed by the Adviser and its affiliates may afford us additional investment opportunities and the ability to achieve greater diversification. Pursuant to the terms of the Order or, if granted, the expected terms of the Amended Relief (each, an "Applicable Order"), and in accordance with other provisions of the Investment Company Act, we expect to co-invest with other affiliates of the Adviser, unless doing so is impermissible under existing regulatory guidance, applicable regulations, the terms of any exemptive relief granted to Audax Private Debt, or the allocation policies and procedures applicable to the Fund.

Under the terms of the Order, a "required majority" (as defined in Section 57(o) of the Investment Company Act) of the Fund's Independent Directors are required to make certain determinations in connection with a

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proposed co-investment transaction, including that (1) the terms of the transaction, including the consideration to be paid, are reasonable and fair to the Fund and its Shareholders and do not involve overreaching in respect of the Fund or its Shareholders on the part of any person concerned and (2) the transaction is consistent with the interests of the Fund's Shareholders and the Fund's then-current objectives and strategies.

The Fund may also co-invest alongside Audax Private Debt affiliates pursuant to other regulations and interpretations of the Investment Company Act, for example if the only terms negotiated as to the investment is price. Subject to the terms of the Order, or, as applicable, other Investment Company Act restrictions on co-investments with affiliates, the Adviser will offer the Fund the right to participate in investment opportunities that falls within our then-current investment objectives and strategies, positions, policies, strategies and restrictions, as well as regulatory requirements and other relevant factors. Such offers are subject to the exception that, in accordance with Audax Private Debt's code of ethics and allocation policies and procedures, the Fund will not participate in each individual opportunity but will, on an overall basis, be entitled to participate equitably with other entities sponsored or managed by Audax Private Debt. The Fund's Board will regularly review the Adviser's allocation policy and procedures.

The Adviser and its affiliates have other clients with similar or competing investment objectives, including certain private funds, managed accounts and similar investment vehicles sponsored or managed by Audax Private Debt ("Affiliated Funds"), that are pursuing an investment strategy similar to ours. Audax Private Debt has obligations to such Affiliated Funds and certain Affiliated Funds have investment objectives that overlap with those of the Fund.

To the extent the Fund competes with one or more Affiliated Funds for a particular investment opportunity, Audax Private Debt will allocate investment opportunities across the entities for which such opportunities are appropriate, consistent with (1) Audax Private Debt's internal conflict of interest and allocation policies and procedures, (2) the requirements of the Advisers Act and (3) certain restrictions under the Investment Company Act regarding co-investments with affiliates, as modified by no-action relief granted by the SEC as well as the Applicable Order, in each case in compliance with the terms and conditions of such no-action relief or the Applicable Order. Audax Private Debt's allocation policies are intended to ensure that, over time, the Fund generally shares equitably in investment opportunities with other Affiliated Funds, particularly those involving a security with limited supply or involving differing classes of securities of the same issuer that are suitable for us and such other accounts.

The Adviser and its affiliates seek to ensure the equitable allocation of investment opportunities when we are able to invest alongside other Affiliated Funds. Pursuant to the Adviser's allocation policy each opportunity will be offered to us and similar eligible investment funds, accounts or other investment vehicles, as periodically determined by the Adviser and its affiliates. The Adviser's allocation policy further provides that allocations among us and other accounts will generally be made pro rata based on each account's capital available for investment, as determined, in our case, by the Adviser. It is the Adviser's policy to base its determinations as to the amount of capital available for investment on such factors as: (1) the amount of cash on-hand, existing commitments and reserves, if any, (2) available leverage, (3) targeted asset mix and diversification requirements and (4) other investment policies and restrictions set by the Adviser or imposed by applicable laws, rules, regulations or interpretations. We expect that these determinations will be made similarly for other accounts. In situations where co-investment with other entities managed by the Adviser and its affiliates is not permitted or appropriate, such as when there is an opportunity to invest in different securities of the same issuer, our Adviser will need to decide whether we or such other entity or entities will proceed with the investment. The Adviser intends to make these determinations based on its policies and procedures, which generally require that such opportunities be offered to eligible accounts on a basis that will be fair and equitable over time.

***Payment of Our Expenses***

To the extent not paid by portfolio companies, the Fund will bear expenses associated with its activities, operations, administration, and transactions with respect to the Fund, including legal, auditing, investor relations,

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software, deal sourcing, travel, consulting, research, diligence, custody, transfer, registration, interest, taxes and extraordinary expenses, all costs of Fund leverage (including asset-based leverage) and other similar fees and expenses. For example, software expenses may include costs to maintain reporting, accounting, online research, or similar systems. The Fund will pay registration, filing and related fees and expenses incurred to allow the Fund, the Adviser or their affiliates to comply with federal, local and state laws and regulations during the offering process and subsequently during the Fund's term. Given the possibility of new AIFMD regulations applying to the Fund's offering activities, such fees and expenses may be significant.

Services required by the Fund (including some services at times provided by the Adviser or its affiliates to the Fund) may, for certain reasons including efficiency and economic considerations, be outsourced in whole or in part to third parties in the discretion of the Adviser or its affiliates. The Adviser and its affiliates have an incentive to outsource such services at the expense of the Fund to, among other things, leverage the use of Adviser personnel. Such services may include, without limitation, deal sourcing, information technology, license software, depository, data processing, client relations, administration and accounting (at any level in the Fund's structure), custodial, accounting, legal and tax support and other similar services. Outsourcing may not occur universally for all Audax Vehicles and accordingly, certain costs may be incurred by the Fund for a third-party service provider that is not incurred for comparable services by other Audax Vehicles. The decision by the Adviser to initially perform a service for the Fund in-house does not preclude a later decision to outsource such services (or any additional services) in whole or in part to a third-party service provider in the future, subject to the Adviser's fiduciary duties and any requirements of the Investment Company Act. The costs and expenses of any such third-party service providers will be borne by the Fund.

The costs associated with the investment team and staff of the Adviser, when and to the extent engaged in providing investment advisory services and management services to us, will be paid for by the Adviser, other than to the extent described below.

Subject to final documentation under the Advisory Agreement, the Fund shall bear all other fees, costs and expenses of our activities, operations, administration and transactions with respect to the Fund, including but not limited to those relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment advisory fees, including management fees and incentive fees, to the Adviser, pursuant to the Advisory
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Fund's allocable portion of compensation, overhead (including rent, office equipment and utilities) and
other expenses incurred by the Administrator in performing its administrative obligations under the Administration Agreement, including but not limited to: (i) the Fund's chief compliance officer, chief financial officer and their
respective staffs; (ii) investor relations, legal, operations and other non-investment professionals at the Administrator that perform duties for the Fund; and (iii) any internal audit group
personnel of Audax Private Debt or any of its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other expenses of the Fund's operations, administrations and transactions including, without limitation,
those relating to organization and offering expenses associated with this offering (including legal, accounting, printing, mailing, subscription processing and filing fees and expenses and other offering expenses, including costs associated with
technology integration between the Fund's systems and those of participating intermediaries, reasonable bona fide due diligence expenses of participating intermediaries supported by detailed and itemized invoices, costs in connection with
preparing sales materials and other marketing expenses, design and website expenses, fees and expenses of the Fund's transfer agent and escrow agent, if applicable, fees to attend seminars sponsored by participating intermediaries and costs,
expenses and reimbursements for travel, meals, accommodations, entertainment and other similar expenses related to meetings or events with prospective investors, intermediaries, registered investment advisors or financial or other advisors, but
excluding any shareholder servicing fee);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all taxes, fees, costs, and expenses, retainers and/or other payments of accountants, legal counsel, advisors
(including tax advisors), administrators, auditors (including with respect to any additional

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auditing required under The Directive 2011/61/EU of the European Parliament and of the Council of 8 June 2011 on Alternative Investment Fund Managers and any applicable legislation implemented by an European Economic Area (the "EEA") Member state in connection with such Directive (the "AIFMD"), investment bankers, administrative agents, paying agents, depositaries, custodians, directors, sub-custodians, consultants (including individuals consulted through expert network consulting firms), engineers, senior advisors, industry experts, operating partners, deal sourcers (including personnel dedicated to but not employed by the Administrator, Audax Private Debt or its affiliates), and other professionals (including, for the avoidance of doubt, the costs and charges allocable with respect to the provision of internal legal, tax, accounting, technology or other services and professionals related thereto (including secondees and temporary personnel or consultants that may be engaged on short- or long-term arrangements) as deemed appropriate by the Administrator, with the oversight of the Board, where such internal personnel perform services that would be paid by the Fund if outside service providers provided the same services); fees, costs, and expenses herein include (x) costs, expenses and fees for hours spent by its in-house attorneys and tax advisors that provide transactional legal advice and/or services to the Fund or its portfolio companies on matters related to potential or actual investments and transactions and the ongoing operations of the Fund and (y) expenses and fees to provide administrative and accounting services to the Fund or its portfolio companies, and expenses, charges and/or related costs incurred directly by the Fund or affiliates in connection such services (including overhead related thereto), in each case, (I) that are specifically charged or specifically allocated or attributed by the Administrator, with the oversight of the Board, to the Fund or its portfolio companies and (II) provided that any such amounts shall not be greater than what would be paid to an unaffiliated third party for substantially similar advice and/or services); <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of calculating the Fund's net asset value, including the cost of any third-party valuation
services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the cost of effecting any sales and repurchases of the Shares and other securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fees and expenses payable under any intermediary manager and selected intermediary agreements, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• interest and fees and expenses arising out of all borrowings, guarantees and other financings or derivative
transactions (including interest, fees and related legal expenses) made or entered into by the Fund, including, but not limited to, the arranging thereof and related legal expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses of any loan servicers and other service providers and of any custodians, lenders,
investment banks and other financing sources;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs incurred in connection with the formation or maintenance of entities or vehicles to hold the Fund's
assets for tax or other purposes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs of derivatives and hedging;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses, including travel, entertainment, lodging and meal expenses, incurred by the Adviser, or members of its
investment team, or payable to third parties, in evaluating, developing, negotiating, structuring and performing due diligence on prospective portfolio companies, including such expenses related to potential investments that were not consummated,
and, if necessary, enforcing the Fund's rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• expenses (including the allocable portions of compensation and out-of-pocket expenses such as travel expenses) or an appropriate portion thereof of employees of the Adviser to the extent such expenses relate to attendance at meetings of the Board or any committees
thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses, if any, incurred by or on behalf of the Fund in developing, negotiating and
structuring prospective or potential investments that are not ultimately made, including, without limitation any legal, tax, administrative, accounting, travel, meals, accommodations and entertainment, advisory, consulting and printing expenses,
reverse termination fees and any liquidated damages,

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commitment fees that become payable in connection with any proposed investment that is not ultimately made, forfeited deposits or similar payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the allocated costs incurred by the Adviser and the Administrator in providing managerial assistance to those
portfolio companies that request it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all brokerage costs, hedging costs, prime brokerage fees, custodial expenses, agent bank and other bank service
fees; private placement fees, commissions, appraisal fees, commitment fees and underwriting costs; costs and expenses of any lenders, investment banks and other financing sources, and other investment costs, fees and expenses actually incurred in
connection with evaluating, making, holding, settling, clearing, monitoring or disposing of actual investments (including, without limitation, travel, meals, accommodations and entertainment expenses and any expenses related to attending trade
association and/or industry meetings, conferences or similar meetings, any costs or expenses relating to currency conversion in the case of investments denominated in a currency other than U.S. dollars) and expenses arising out of trade settlements
(including any delayed compensation expenses);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investment costs, including all fees, costs and expenses incurred in sourcing, evaluating, developing,
negotiating, structuring, trading (including trading errors), settling, monitoring and holding prospective or actual investments or investment strategies including, without limitation, any financing, legal, filing, auditing, tax, accounting,
compliance, loan administration, travel, meals, accommodations and entertainment, advisory, consulting, engineering, data-related and other professional fees, costs and expenses in connection therewith (to the extent the Adviser is not reimbursed by
a prospective or actual issuer of the applicable investment or other third parties or capitalized as part of the acquisition price of the transaction) and any fees, costs and expenses related to the organization or maintenance of any vehicle through
which the Fund directly or indirectly participates in the acquisition, holding and/or disposition of investments or which otherwise facilitate the Fund's investment activities, including without limitation any travel and accommodations expenses
related to such vehicle and the salary and benefits of any personnel (including personnel of Adviser or its affiliates) reasonably necessary and/or advisable for the maintenance and operation of such vehicle, or other overhead expenses (including
any fees, costs and expenses associated with the leasing of office space (which may be made with one or more affiliates of the Adviser as lessor in connection therewith));

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transfer agent, dividend agent and custodial fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fees and expenses associated with marketing efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• federal and state registration fees, franchise fees, any stock exchange listing fees and fees payable to rating
agencies, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• independent directors' fees and expenses including reasonable travel, entertainment, lodging and meal
expenses, and any legal counsel or other advisors retained by, or at the discretion or for the benefit of, the independent directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs of preparing financial statements and maintaining books and records, costs of the Sarbanes-Oxley Act,
compliance and attestation and costs of preparing and filing reports or other documents with the SEC, Financial Industry Regulatory Authority, U.S. Commodity Futures Trading Commission ("CFTC") and other regulatory bodies and other
reporting and compliance costs, including registration and exchange listing and the costs associated with reporting and compliance obligations under the Investment Company Act and any other applicable federal and state securities laws, and the
compensation of professionals responsible for the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses associated with the preparation and issuance of the Fund's periodic reports and
related statements (e.g., financial statements and tax returns) and other internal and third-party printing (including a flat service fee), publishing (including time spent performing such printing and publishing services) and reporting-related
expenses (including other notices and communications) in respect of the Fund and its activities (including internal expenses, charges and/or related costs incurred,

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charged or specifically attributed or allocated by the Fund or the Adviser or its affiliates in connection with such provision of services thereby);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs of any reports, proxy statements or other notices to Shareholders (including printing and mailing
costs) and the costs of any Shareholder or Board meetings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• proxy voting expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs associated with an exchange listing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs of registration rights granted to certain investors, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any taxes and/or tax-related interest, fees or other governmental charges
(including any penalties incurred where the Adviser lacks sufficient information from third parties to file a timely and complete tax return) levied against the Fund and all expenses incurred in connection with any tax audit, investigation,
litigation, settlement or review of the Fund and the amount of any judgments, fines, remediation or settlements paid in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses of any litigation, arbitration or audit involving the Fund any vehicle or its
portfolio companies and the amount of any judgments, assessments fines, remediations or settlements paid in connection therewith, directors and officers, liability or other insurance (including costs of title insurance) and indemnification
(including advancement of any fees, costs or expenses to persons entitled to indemnification) or extraordinary expense or liability relating to the affairs of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses associated with the Fund's information, obtaining and maintaining technology
(including the costs of any professional service providers), hardware/software, data-related communication, market data and research (including news and quotation equipment and services) and expenses and fees (including compensation costs) charged
or specifically attributed or allocated by the Adviser and/or its affiliates for data-related services provided to the Fund and/or its portfolio companies (including in connection with prospective investments), each including expenses, charges, fees
and/or related costs of an internal nature; provided, that any such expenses, charges or related costs shall not be greater than what would be paid to an unaffiliated third party for substantially similar services, reporting costs (which includes
notices and other communications and internally allocated charges), and dues and expenses incurred in connection with membership in industry or trade organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the costs of specialty and custom software for monitoring risk, compliance and the overall portfolio, including
any development costs incurred prior to the filing of the Fund's election to be treated as a business development company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs associated with individual or group Shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• fidelity bond, directors and officers errors and omissions liability insurance and other insurance premiums;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• direct costs and expenses of administration, including printing, mailing, long distance telephone, copying and
secretarial and other staff;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses of winding up and liquidating the Fund's assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• extraordinary expenses (such as litigation or indemnification);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all fees, costs and expenses related to compliance-related matters (such as developing and implementing specific
policies and procedures in order to comply with certain regulatory requirements) and regulatory filings; notices or disclosures related to the Fund's activities (including, without limitation, expenses relating to the preparation and filing of
filings required under the Securities Act, Treasury International Capital ("TIC") Form SLT filings, Internal Revenue Service filings under the Foreign Account Tax Compliance Act ("FATCA") and Report of Foreign Bank and Financial
Accounts ("FBAR") reporting requirements applicable to the Fund or reports to be filed with the

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CFTC, reports, disclosures, filings and notifications prepared in connection with the laws and/or regulations of jurisdictions in which the Fund engages in activities, including any notices, reports and/or filings required under the AIFMD, European Securities and Markets Authority and any related regulations, and other regulatory filings, notices or disclosures of the Adviser relating to the Fund and its affiliates relating to the Fund, and their activities) and/or other regulatory filings, notices or disclosures of the Adviser and its affiliates relating to the Fund including those pursuant to applicable disclosure laws and expenses relating to the Freedom of Information Act ("FOIA") requests, but excluding, for the avoidance of doubt, any expenses incurred for general compliance and regulatory matters that are not related to the Fund and its activities; <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs and expenses (including travel) in connection with the diligence and oversight of the Fund's service
providers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• costs and expenses, including travel, meals, accommodations, entertainment and other similar expenses, incurred
by the Adviser or its affiliates for meetings with existing investors and any intermediaries, registered investment advisors, financial and other advisors representing such existing investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other expenses incurred by the Administrator in connection with administering the Fund's business.

In addition, from time to time, the Adviser, the Administrator or their affiliates may pay third-party providers of goods or services. The Fund will reimburse the Adviser, the Administrator or such affiliates thereof for any such amounts paid on the Fund's behalf. From time to time, the Adviser or the Administrator may defer or waive fees and/or rights to be reimbursed for expenses.

All of the foregoing expenses will ultimately be borne by the Fund's Shareholders.

**Regulation as a Business Development Company** 

The following discussion is a general summary of the material prohibitions and descriptions governing BDCs generally. It does not purport to be a complete description of all of the laws and regulations affecting BDCs.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. does not have any class of securities that is traded on a national securities exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. has a class of securities listed on a national securities exchange, but has an aggregate market value of
outstanding voting and non-voting common equity of less than $250 million;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. is controlled by a BDC or a group of companies including a BDC and the BDC has an affiliated person who is a
director of the Eligible Portfolio Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. is a small and solvent company having total assets of not more than $4.0 million and capital and surplus
of not less than $2.0 million.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Securities of any Eligible Portfolio Company controlled by the Fund.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Securities of an Eligible Portfolio Company purchased from any person in a private transaction if there is no
ready market for such securities and the Fund already owns 60% of the outstanding equity of the Eligible Portfolio Company.

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

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

In addition, a BDC must be operated for the purpose of making investments in the types of securities described in (1), (2) or (3) above.

***Managerial Assistance to Portfolio Companies***. A BDC must have been organized under the laws of, and have its principal place of business in, any state or states within the United States. However, in order to count portfolio securities as Qualifying Assets for the purpose of the 70% test, the BDC must either control the issuer of the securities or must offer to make available to the issuer of the securities (other than small and solvent companies described above) significant managerial assistance; except that, where the BDC purchases such securities in conjunction with one or more other persons acting together, one of the other persons in the group may make available such managerial assistance. Making available managerial assistance means, among other things, any arrangement whereby the BDC, through its directors, officers or employees, offers to provide, and, if accepted, does so provide, significant guidance and counsel concerning the management, operations or business objectives and policies of a portfolio company.

***Temporary Investments***. Pending investment in other types of Qualifying Assets, as described above, our investments may consist of cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment, which we refer to, collectively, as "temporary investments," so that 70% of our assets are Qualifying Assets. We may also invest in U.S. Treasury bills or in repurchase agreements, provided that such agreements are fully collateralized by cash or securities issued by the U.S. government or its agencies. A repurchase agreement involves the purchase by an investor, such as us, of a specified security and the simultaneous agreement by the seller to repurchase it at an agreed-upon future date and at a price which is greater than the purchase price by an amount that reflects an agreed-upon interest rate. There is no percentage restriction on the proportion of our assets that may be invested in such repurchase agreements. However, if more than 25% of our gross assets constitute repurchase agreements from a single counterparty, we would not meet the diversification tests in order to qualify as a RIC. Thus, we do not intend to enter into repurchase agreements with a single counterparty in excess of this limit. Our Adviser will monitor the creditworthiness of the counterparties with which we enter into repurchase agreement transactions.

***Indebtedness and Senior Securities***. We are permitted, under specified conditions, to issue multiple classes of indebtedness and one class of stock senior to our Shares if our asset coverage, as defined in the Investment Company Act, would at least equal 150% immediately after each such issuance. The limited partners of the

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Limited Partnership approved the adoption of this 150% threshold pursuant to Section 61(a)(2) of the Investment Company Act prior to the Conversion. In addition, while any senior securities remain outstanding, we must make provisions to prohibit any distribution to our shareholders or the repurchase of our Shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage.

***Fund of Funds***. In October 2020, the SEC adopted certain regulatory changes related to the ability of investment companies, including BDCs, to invest in other investment companies in excess of the limits imposed by the Investment Company Act. These changes include, among other things, the adoption of Rule 12d1-4 under the Investment Company Act ("Rule 12d1-4"). Under Rule 12d1-4, the Fund may acquire securities issued by any investment company in excess of the limits imposed by the Investment Company Act as long as the Fund complies with the conditions of Rule 12d1-4, which include, among other things, certain post-acquisition limits on control and voting of any acquired RIC. The portion of the Fund's portfolio invested in securities issued by investment companies ordinarily will subject shareholders to additional expenses. The Fund's investment portfolio is also subject to diversification requirements by virtue of the Fund's intention to be a RIC for U.S. tax purposes.

Similarly, other investment companies subject to the restrictions of Section 12(d)(1) of the Investment Company Act may also rely upon Rule 12d1-4 (or Section 12(d)(1)(E), if available) of the Investment Company Act to invest in the Fund so long as in compliance with the conditions of the rule (or the exemption set forth in Section 12(d)(1)(E), if available). The Board has approved a form of fund of funds agreement, filed herewith, in connection with its organizational board meeting and has entered into, and may in the future enter into, a Rule 12d1-4 fund of funds agreements with investors subject to Section 12(d)(1) of the Investment Company Act.

***Code of Ethics***. We and the Adviser have adopted a code of ethics pursuant to Rule 17j-1 under the Investment Company Act and Rule 204A-1 under the Advisers Act, respectively, that establishes procedures for personal investments and restricts certain transactions by our personnel. Our codes of ethics generally will not permit personal investments by our and the Adviser's personnel in securities that may be purchased or sold by us.

***Compliance Policies and Procedures***. We and the Adviser have adopted and implemented written policies and procedures reasonably designed to detect and prevent violation of the federal securities laws and are required to review these compliance policies and procedures annually for their adequacy and the effectiveness of their implementation and designate a Chief Compliance Officer to be responsible for administering the policies and procedures.

***Sarbanes-Oxley Act***. The Sarbanes-Oxley Act imposes a wide variety of new regulatory requirements on publicly-held companies and their insiders. Many of these requirements affect us. For example:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pursuant to Rule 13a-15 of the Exchange Act, our management must
prepare a report regarding its assessment of our internal control over financial reporting starting with our annual report on Form 10-K for the fiscal year ending December 31, 2025 and, when we cease
to be an emerging growth company (if we are also an accelerated filer or large accelerated filer), must obtain an audit of the effectiveness of internal control over financial reporting performed by our independent registered public accounting firm;
and

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

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The Sarbanes-Oxley Act requires us to review our current policies and procedures to determine whether we comply with the Sarbanes-Oxley Act and the regulations promulgated thereunder. We will continue to monitor our compliance with all regulations that are adopted under the Sarbanes-Oxley Act and will take actions necessary to ensure that we are in compliance therewith.

***Compliance with the JOBS Act***. We currently are, and following the completion of this offering expect to remain, an "emerging growth company," as defined in the JOBS Act until the earliest of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• up to five years measured from the date of the first sale of common equity securities pursuant to an effective
registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the last day of the first fiscal year in which our annual gross revenues are $1.07 billion or more;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date that we become a "large accelerated filer" as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of the Shares that is held by non-affiliates exceeds $700 million as of any June 30.

Under the JOBS Act, we will be exempt from the provisions of Section 404(b) of the Sarbanes-Oxley Act, which would require that our independent registered public accounting firm provide an attestation report on the effectiveness of our internal control over financial reporting. As long as we remain an emerging growth company, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. This may increase the risk that material weaknesses or other deficiencies in our internal control over financial reporting go undetected.

In addition, Section 7(a)(2)(B) of the Securities Act and Section 13(a) of the Exchange Act, as amended by Section 102(b) of the JOBS Act, provide that an emerging growth company can take advantage of the extended transition period for complying with new or revised accounting standards. However, pursuant to Section 107 of the JOBS Act, we are choosing to "opt out" of such extended transition period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non- emerging growth companies. Our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.

***U.S. Investment Advisers Act of 1940***. The Adviser is registered as an investment adviser under the Advisers Act.

***U.S. Securities Act of 1933***. The offer and sale of the Shares will not be registered under the Securities Act, in reliance upon the exemption from registration provided by Section 4(a)(2) thereof. Neither the SEC, nor any state securities commission or any other regulatory authority has approved, passed upon, or endorsed the merits of this offering. The offering and proposed sale of Shares will be made to a limited number of investors: (i) in reliance upon the "private placement" exemption from registration provided in Section 4(a)(2) of the Securities Act and/or Regulation D or Regulation S promulgated by the SEC under the Securities Act; and (ii) where available, in reliance upon appropriate exemptions from state registration or qualification requirements, or pursuant to registration or qualification under such state requirements. Shares will be offered and sold only to persons that are "accredited investors," as such term is defined in Regulation D, or persons that qualify as a non-U.S. person for purposes of Regulation S under the Securities Act.

The Shares in the Fund will not be registered under any other securities laws, including state securities or blue-sky laws and non-U.S. securities laws.

The Shares in the Fund are subject to restrictions on transferability and cannot be transferred or resold except as permitted under the Securities Act and any applicable state or non-U.S. securities laws, pursuant to

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registration or exemption therefrom. In addition, such Shares must be acquired for investment only and cannot be offered for sale or sold, exchanged, transferred, assigned, conveyed, pledged, mortgaged, encumbered, hypothecated, swapped, disposed of, severed, or otherwise alienated at any time, in whole or in part, except as provided by the terms of the LLC Agreement.

Each prospective investor will be required to make customary private placement representations, including that such prospective investor is acquiring Shares for its own account for investment and not with a view to resale or distribution. Further, each prospective investor must be prepared to bear the risk of an investment in the Shares for an indefinite period of time, since the Shares may not be transferred or resold except as permitted under the Securities Act and any applicable state or non-U.S. securities laws pursuant to registration or an exemption therefrom.

***Proxy Voting Policies and Procedures***. We will delegate our proxy voting responsibility to our Adviser. The Proxy Voting Policies and Procedures of our Adviser are summarized below. The guidelines are reviewed periodically by the Adviser and our Independent Directors, and, accordingly, are subject to change.

An investment adviser registered under the Advisers Act has a fiduciary duty to act solely in the best interests of its clients. As part of this duty, the Adviser recognizes that it must vote client securities in a timely manner free of conflicts of interest and in the best interests of its clients. These policies and procedures for voting proxies for the Adviser's investment advisory clients are intended to comply with Section 206 of, and Rule 206(4)-6 under, the Advisers Act.

The Adviser will vote all proxies in the best interest of its clients, and ultimately all votes are cast on a case-by-case basis, taking into consideration the contractual obligations under the relevant advisory agreements or comparable documents, and all other relevant facts and circumstances at the time of the vote. All proxy voting decisions will require a mandatory conflicts of interest review by our Chief Compliance Officer in accordance with these policies and procedures, which will include consideration of whether the Adviser or any investment professional or other person recommending how to vote the proxy has an interest in how the proxy is voted that may present a conflict of interest. It is or will be the Adviser's general policy to vote or give consent on all matters presented to security holders in any proxy, and these policies and procedures have been designed with that in mind. However, the Adviser reserves the right to abstain on any particular vote or otherwise withhold its vote or consent on any matter if, in the judgment of our Chief Compliance Officer or the relevant investment professional(s), the costs associated with voting such proxy outweigh the benefits to our shareholders or if the circumstances make such an abstention or withholding otherwise advisable and in the best interest of the relevant shareholder(s).

***Proxy Policies***. The Adviser's policies and procedures are reasonably designed to ensure that the Adviser votes proxies in the best interest of the Fund and addresses how it will resolve any conflict of interest that may arise when voting proxies and, in so doing, to maximize the value of the investments made by the Fund, taking into consideration the Fund's investment horizons and other relevant factors. It will review on a case-by-case basis each proposal submitted for a Shareholder vote to determine its impact on the portfolio securities held by its clients. Although the Adviser will generally vote against proposals that may have a negative impact on its clients' portfolio securities, it may vote for such a proposal if there exists compelling long-term reasons to do so.

Decisions on how to vote a proxy generally are made by the Adviser. The members of the investment team covering the applicable security often have the most intimate knowledge of both a company's operations and the potential impact of a proxy vote's outcome. Decisions are based on a number of factors which may vary depending on a proxy's subject matter, but are guided by the general policies described in the proxy policy. In addition, the Adviser may determine not to vote a proxy after consideration of the vote's expected benefit to clients and the cost of voting the proxy. To ensure that its vote is not the product of a conflict of interest, the Adviser will require the members of any investment committee to disclose any personal conflicts of interest they may have with respect to overseeing a Fund's investment in a particular company.

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***Proxy Voting Records***. You may obtain information, without charge, regarding how we voted proxies with respect to our portfolio securities by making a written request for proxy voting information to compliance@audaxgroup.com (telephone number: 212-703-2700).

***Anti-Money Laundering Requirements***. In order to comply with applicable anti-money laundering requirements, the investor must, except as otherwise agreed by the Adviser, represent and warrant in its Subscription Agreement with the Fund that neither the investor, nor any of its affiliates or beneficial owners (i) appears on the Specially Designated Nationals and Blocked Persons List of OFAC, nor are they otherwise a party with which the Fund is prohibited or restricted to deal under the laws of the United States, (ii) appears on the European External Action Service consolidated list of persons, groups and entities subject to EU financial sanctions maintained on behalf of the European Commission, (iii) appears on the Consolidated United Nations Security Council Sanctions List or (iv) is a person identified as a terrorist organization on any other relevant lists maintained by governmental authorities. The investor must also represent and warrant that: (i) if the investor is a natural person, the investor is not a person who is or has been entrusted with prominent public functions, such as Head of State or of government, a senior politician, a senior government, judicial or military official, a senior executive of a state-owned corporation or an important political party official, or a close family member or close associate of such person and (ii) the monies used to fund the investment in the Shares are not derived from, invested for the benefit of or related in any way to, the governments of, or persons within, any country that (a) is under a U.S. embargo enforced by OFAC or an embargo program issued by the United Nations, the EU or the UK as amended from time to time (currently, which include Cuba, Iran, North Korea, Russia, Syria, the Crimea, Kherson, People's Republic of Donetsk and People's Republic of Luhansk, or Zaporizhzhya regions of Ukraine), (b) has been designated as non-cooperative with international anti-money laundering principles or procedures by an intergovernmental group or organization, including the "High-Risk Jurisdictions subject to a Call for Action" designated by the Financial Action Task Force ("FATF"), of which the United States is a member, or (c) has been designated by the U.S. Secretary of the Treasury as a "primary money laundering concern." The investor must also represent and warrant that the investor: (i) has conducted thorough due diligence with respect to all of its beneficial owners, (ii) has established the identities of all beneficial owners and the source of each of the beneficial owner's funds and (iii) will retain evidence of any such identities, any such source of funds and any such due diligence. The investor must also represent and warrant that it does not know or have any reason to suspect that (i) the monies used to fund the investor's investment in the Shares have been or will be derived from or related to any illegal activities, including but not limited to, money laundering activities and (ii) the proceeds from the investor's investment in Shares will be used to finance or otherwise facilitate any illegal activities. The investor must also represent and warrant that neither the investor, nor any of its affiliates, nor any person having a direct or indirect beneficial interest in the Shares being acquired is (i) a senior foreign political figure ("SFPF"), (ii) an immediate family member of a SFPF (iii) a close associate of a SFPF, (iv) a politically exposed person (a "PEP"), (v) an immediate family member of a PEP or (vi) a close associate of a PEP (each as defined in the Subscription Agreement). The investor must also represent and warrant that to the extent a beneficial owner is a bank, including a branch, agency or office of a bank, that is not physically located in the United States, that the investor has taken and will take reasonable measures to establish that the bank has a physical presence or is an affiliate of a regulated entity. The investor must also represent and warrant that it has determined that the funds being invested by the investor in the Fund do not come from corruption. The investor must also agree, except as otherwise agreed by the Adviser, that pursuant to anti-money laundering laws and regulations, the Adviser may be required or determine that it is necessary and appropriate to collect documentation verifying the investor's identity and the source of funds used to acquire an Interest before, and from time to time after, acceptance by the Adviser of the Subscription Agreement.

***Bank Holding Company Act***. The U.S. Bank Holding Company Act of 1956, as amended from time to time, and the rules promulgated thereunder (collectively, the "BHC Act"), including as modified by the Dodd-Frank Act and the "Volcker Rule" thereunder, contain restrictions on certain investors that are (or that have affiliates or certain interest in any entity that is) a U.S. banking organization or a non-U.S. bank with a banking presence in the United States from acquiring and holding certain interests in private investment funds. Shares of the Fund are not freely transferable, are not readily tradable on any exchange or market, and there are generally no redemption

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or withdrawal rights. As a result, Shares must be held on a long-term basis and the prospective investor should carefully review and familiarize itself with these rules and regulations and consult with its own counsel on how the Volcker Rule, the Dodd-Frank Act and the BHC Act may impact the investor, including as a result of its investment in the Fund.

***Reporting Obligations***. We will furnish our shareholders with annual reports containing audited financial statements, quarterly reports, and such other periodic reports as we determine to be appropriate or as may be required by law. We filed a Form 10 Registration Statement with the SEC voluntarily, which will, when effective, establish the Fund as a reporting company under the Exchange Act. Upon the effectiveness of the Form 10 Registration Statement, we will be required to comply with all periodic reporting, proxy solicitation and other applicable requirements under the Exchange Act.

Shareholders and the public may access the Fund's public filings at <u>www.sec.gov</u> or obtain information by calling the SEC at (202) 551-8090.

***ERISA***. The Fund intends to conduct affairs so that its assets should not be deemed to constitute "plan assets" under the Employee Retirement Income Security Act of 1974, as amended ("ERISA") and certain U.S. Department of Labor regulations promulgated thereunder, as modified by Section 3(42) of ERISA (the "Plan Asset Regulations"). In this regard, until such time, if any, as the Shares are considered "publicly-offered securities" within the meaning of the Plan Asset Regulations, the Fund intends to limit investment in the Shares by "benefit plan investors" to less than 25% of the total value of the Shares, within the meaning of the Plan Asset Regulations.

Each prospective investor that is, or is acting on behalf of any (i) "employee benefit plan" (within the meaning of Section 3(3) of ERISA) that is subject to Title I of ERISA, (ii) "plan" described in Section 4975 of the Code that is subject to Section 4975 of the Code (including, for example, an individual retirement account and a "Keogh" plan), (iii) plan, account or other arrangement that is subject to the provisions of any federal, state, local, non-U.S. or other laws or regulations that are similar to the fiduciary responsibility or prohibited transaction provisions of Title I of ERISA or Section 4975 of the Code (collectively, "Other Plan Laws"), or (iv) entity whose underlying assets are considered to include the assets of any of the foregoing described in clauses (i), (ii) and (iii), pursuant to ERISA or other applicable law (each of the foregoing described in clauses (i), (ii), (iii) and (iv) referred to as a "Plan"), must independently determine that the Shares are an appropriate investment for the Plan, taking into account its obligations under ERISA, the Code and applicable Other Plan Laws, and the facts and circumstances of each investing Plan.

**Material U.S. Federal Income Tax Considerations** 

The following discussion is a summary of certain material U.S. federal income tax considerations applicable to us and to an investment in Common Shares. This summary deals only with Shareholders that hold their shares as capital assets. This summary does not purport to be a complete description of the income tax considerations applicable to such an investment. For example, we have not described tax consequences that may be relevant to certain types of Shareholders that are subject to special treatment under U.S. federal income tax laws, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholders subject to the alternative minimum tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• tax-exempt organizations (except as discussed below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• insurance companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• dealers in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• traders in securities that elect to use a mark-to-market method of accounting for securities holdings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• pension plans (except as discussed below);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trusts (except as discussed below);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• entities or arrangements taxed as partnerships or partners therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons holding Shares as part of a "straddle," "hedge," "conversion transaction,"
"synthetic security" or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who receive our Shares as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• persons who hold our Shares on behalf of another person as a nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. expatriates, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. Shareholders (as defined below) who have a "functional currency" other than the U.S. dollar.

Finally, this summary does not address other U.S. federal tax consequences (such as estate, gift and Medicare contribution tax consequences) or any state, local or foreign tax consequences.

The discussion below is based upon the provisions of the Code, and Treasury Regulations, rulings and judicial decisions as of the date hereof. Those authorities may be changed, perhaps retroactively, so as to result in U.S. federal income tax consequences different from those discussed below. This summary does not address all aspects of U.S. federal income taxes and does not deal with all tax consequences that may be relevant to Shareholders in light of their personal circumstances. If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds our Shares, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our Common Shares and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.

For purposes of this discussion under the heading "*Material U.S. Federal Income Tax Considerations*," a "U.S. Shareholder" is a beneficial owner of our Shares that is, for U.S. federal income tax purposes, an individual who is a citizen or resident of the United States or a domestic corporation (which is generally a corporation or any other entity treated as a corporation for U.S. federal income tax purposes that is created or organized under the laws of the United States, any state thereof, or the District of Columbia) or otherwise subject to U.S. federal income tax on a net income basis in respect of our Shares.

A "Non-U.S. Shareholder" is a beneficial owner of our Shares that is not a U.S. Shareholder and not an entity taxed as a partnership.

**Regulated Investment Company Classification** 

As a BDC, we intend to elect to be treated and to qualify as a RIC for U.S. federal income tax purposes. Our status as a RIC will enable us to deduct qualifying distributions to our Shareholders, so that we will be subject to corporate-level U.S. federal income taxation only in respect of income and gains that we retain and do not distribute.

To maintain our status as a RIC, we must, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain an election under the Investment Company Act to be treated as a BDC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• derive in each taxable year at least 90% of our gross income from dividends, interest, gains from the sale or
other disposition of Shares or securities and other specified categories of investment income; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain diversified holdings so that, subject to certain exceptions and cure periods, at the end of each quarter
of our taxable year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least 50% of the value of our total gross assets is represented by cash and cash items, U.S. government
securities, the securities of other RICs and "other securities," provided that such

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"other securities" shall not include any amount of any one issuer, if our holdings of such issuer are greater in value than 5% of our total assets or greater than 10% of the outstanding voting securities of such issuer, and <br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no more than 25% of the value of our assets may be invested in securities of any one issuer, the securities of
any two or more issuers that are controlled by us and are engaged in the same or similar or related trades or businesses (excluding U.S. government securities and securities of other RICs), or the securities of one or more "qualified publicly
traded partnerships."

We may earn various fees which will not be treated as qualifying income for purposes of the 90% gross income test. We may also earn other types of income that will not be treated as qualifying income for purposes of the 90% gross income test.

To maintain our status as a RIC, we must distribute (or be treated as distributing) in each taxable year dividends for tax purposes of an amount equal to at least 90% of our investment company taxable income (as that term is defined in the Code, which includes, among other items, dividends, interest, the excess of any net short-term capital gains over net long-term capital losses, as well as other taxable income, excluding any net capital gains reduced by deductible expenses) and 90% of our net tax-exempt income for that taxable year. As a RIC, we generally will not be subject to corporate-level U.S. federal income tax on our investment company taxable income and net capital gains that we distribute to Shareholders. In addition, to avoid the imposition of a nondeductible 4% U.S. federal excise tax, we must distribute (or be treated as distributing) in each calendar year an amount at least equal to the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 98% of our net ordinary income, excluding certain ordinary gains and losses, recognized during a calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 98.2% of our capital gain net income, adjusted for certain ordinary gains and losses, recognized for the
twelve-month period ending on October 31 of such calendar year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of any income or gains recognized, but not distributed, in preceding years.

While we intend to distribute income and capital gains to minimize exposure to the 4% excise tax, we may not be able to, or may choose not to, distribute amounts sufficient to avoid the imposition of the tax entirely. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

We generally expect to distribute substantially all of our earnings on a quarterly basis, but may reinvest distributions on behalf of those investors that do not elect to receive their distributions in cash. See "*Item 1. Business—Distribution Reinvestment Plan*" for a description of our distributions policy. One or more of the considerations described below, however, could result in the deferral of distributions until the end of the fiscal year.

We may make investments that are subject to tax rules that require us to include amounts in our income before we receive cash corresponding to that income or that defer or limit our ability to claim the benefit of deductions or losses. For example, if we hold securities issued with original issue discount, that original issue discount may be accrued in income before we receive any corresponding cash payments. Similarly, the terms of the debt instruments that we hold may be modified under certain circumstances. These modifications may be considered "significant modifications" for U.S. federal income tax purposes that give rise to deemed debt-for-debt exchange upon which we may recognize taxable income or gain without a corresponding receipt of cash.

In cases where our taxable income exceeds our available cash flow, we will need to fund distributions with the proceeds of sale of securities or with borrowed money, and may raise funds for this purpose opportunistically over the course of the year.

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In certain circumstances (e.g., where we are required to recognize income before or without receiving cash representing such income), we may have difficulty making distributions in the amounts necessary to satisfy the requirements for maintaining RIC status and for avoiding U.S. federal income and excise taxes. Accordingly, we may have to sell investments at times we would not otherwise consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If we are not able to obtain cash from other sources, we may fail to qualify as a RIC and thereby be subject to corporate-level U.S. federal income tax.

If in any particular taxable year, we do not qualify as a RIC, all of our taxable income (including our net capital gains) will be subject to tax at regular corporate rates without any deduction for distributions to Shareholders, and distributions will be taxable to our Shareholders as ordinary dividends to the extent of our current or accumulated earnings and profits, and distributions would not be required. Subject to certain limitations under the Code, such distributions generally would be eligible (i) to be treated as "qualified dividend income" in the case of an individual and other non-corporate shareholders and (ii) for the dividends received deduction in the case of corporate shareholders. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the Shareholder's tax basis, and any remaining distributions would be treated as capital gain. If we fail to qualify as a RIC for a period greater than two consecutive taxable years, to qualify as a RIC in a subsequent year we may be subject to regular corporate tax on any net built-in gains with respect to certain of our assets (that is, the excess of the aggregate gains, including items of income, over aggregate losses that would have been realized with respect to such assets if we had sold the property at fair market value at the end of the taxable year) that we elect to recognize on requalification or when recognized over the next five years.

The Code provides certain relief from RIC disqualification due to inadvertent failures to comply with the 90% gross income test and the diversification tests described above, although there could be additional taxes due in such cases. We cannot assure you that we would qualify for any such relief should we fail the 90% gross income test or the diversification test described above.

In the event we invest in foreign securities, we may be subject to withholding and other foreign taxes with respect to those securities. We do not expect to satisfy the conditions necessary to pass through to our Shareholders their share of the foreign taxes paid by us.

**Taxation of U.S. Shareholders** 

Distributions from our investment company taxable income (consisting generally of net ordinary income, net short-term capital gain, and net gains from certain foreign currency transactions) generally will be taxable to U.S. Shareholders as ordinary income to the extent made out of our current or accumulated earnings and profits. To the extent that such distributions paid by us to non-corporate U.S. Shareholders (including individuals) are attributable to dividends from U.S. corporations and certain qualified foreign corporations, such distributions ("qualified dividend income") may be eligible for a reduced maximum U.S. federal income tax rate. In this regard, it is anticipated that our distributions generally will not be attributable to dividends received by us and, therefore, generally will not qualify for the reduced rates that may be applicable to qualified dividend income. Distributions generally will not be eligible for the dividends received deduction allowed to corporate Shareholders. Distributions derived from our net capital gains (which generally is the excess of our net long-term capital gain over net short-term capital loss) which we have reported as capital gain dividends will be taxable to U.S. Shareholders as long-term capital gain regardless of how long particular U.S. Shareholders have held their shares. Distributions in excess of our current and accumulated earnings and profits first will reduce a U.S. Shareholder's adjusted tax basis in such U.S. Shareholder's Shares and, after the adjusted tax basis is reduced to zero, will constitute capital gains to such U.S. Shareholder.

Any distributions declared by us in October, November, or December of any calendar year, payable to Shareholders of record on a specified date in such a month, which are actually paid during January of the

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following calendar year, will be treated as if paid by us and received by such Shareholders during the quarter ended December 31 of the previous calendar year. In addition, we may elect to relate any undistributed investment company taxable income or net capital gains eligible for distribution as a dividend back to our immediately prior taxable year if we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• declare such dividend prior to the earlier of the 15th day of the ninth month following the close of that taxable
year, or any applicable extended due date of our U.S. federal corporate income tax return for such prior taxable year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distribute such amount in the 12-month period following the close of such
prior taxable year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• make an election in our U.S. federal corporate income tax return for the taxable year in which such undistributed
investment company taxable income or net capital gains were recognized.

Any such election will not alter the general rule that a U.S. Shareholder will be treated as receiving a dividend in the taxable year in which the dividend is distributed, subject to the October, November, or December dividend declaration rule discussed immediately above.

We have adopted a distribution reinvestment plan that will allow Shareholders to elect to receive distributions in the form of additional shares instead of in cash. If a U.S. Shareholder reinvests distributions in additional shares, such U.S. Shareholder will be treated as if it had received a distribution in the amount of cash that it would have received if it had not made the election. Any such additional shares will have a tax basis equal to the amount of the distribution.

Although we intend to distribute any net long-term capital gains at least annually, we may in the future decide to retain some or all of our net long-term capital gains but designate the retained amount as a "deemed distribution." In that case, among other consequences, we will pay tax on the retained amount, each U.S. Shareholder will be required to include his, her or its share of the deemed distribution in income as if it had been distributed to the U.S. Shareholder, and the U.S. Shareholder will be entitled to claim a credit equal to his, her or its allocable share of the tax paid on the deemed distribution by us. The amount of the deemed distribution net of such tax will be added to the U.S. Shareholder's tax basis for their Shares. Since we expect to pay tax on any retained capital gains at our regular corporate tax rate, and since that rate is in excess of the maximum rate currently payable by individuals on long-term capital gains, the amount of tax that individual Shareholders will be treated as having paid and for which they will receive a credit will exceed the tax they owe on the retained net capital gains. Such excess generally may be claimed as a credit against the U.S. Shareholder's other federal income tax obligations or may be refunded to the extent it exceeds a Shareholder's liability for federal income tax. A Shareholder that is not subject to federal income tax or otherwise required to file a federal income tax return would be required to file a federal income tax return on the appropriate form to claim a refund for the taxes we paid. To utilize the deemed distribution approach, we must provide written notice to our Shareholders prior to the expiration of 60 days after the close of the relevant taxable year. We cannot treat any of our investment company taxable income as a "deemed distribution."

If an investor purchases Shares shortly before the record date of a distribution, the price of the shares will include the value of the distribution and the investor will be subject to tax on the distribution even though economically it may represent a return of his, her or its investment.

We will send to each of our U.S. Shareholders, as promptly as possible after the end of each calendar year, a notice detailing, on a per share and per distribution basis, the amounts of such distributions includible in such U.S. Shareholder's taxable income for such year as ordinary dividends and capital gain dividends. In addition, the federal tax status of each year's distributions generally will be reported to the IRS. Distributions may also be subject to additional state, local and foreign taxes depending on a U.S. Shareholder's particular situation.

If a U.S. Shareholder sells or otherwise disposes of Common Shares, the U.S. Shareholder will recognize gain or loss equal to the difference between its adjusted tax basis in the shares sold or otherwise disposed of and

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the amount received. Any such gain or loss will be treated as a capital gain or loss and will be long-term capital gain or loss if the shares have been held for more than one year. Any loss recognized on a sale or exchange of shares that were held for six months or less will be treated as long-term, rather than short-term, capital loss to the extent of any capital gain distributions previously received (or deemed to be received) thereon. In addition, all or a portion of any loss recognized upon a disposition of Shares may be disallowed if other Shares are purchased (whether through reinvestment of distributions or otherwise) within 30 days before or after the disposition.

From time to time, we may offer to repurchase U.S. Shareholders' outstanding Shares. U.S. Shareholders who tender all Shares held, or considered to be held, by them will be treated as having sold their Shares and generally will realize a capital gain or loss. If a U.S. Shareholder tenders fewer than all of the U.S. Shareholder's Shares or fewer than all Shares tendered are repurchased, such U.S. Shareholder may be treated as having received a taxable dividend upon the tender of that U.S. Shareholder's Shares to the extent the tender is made out of our current or accumulated earnings and profits, then as a return of capital to the extent of the U.S. Shareholder's tax basis, and thereafter any remaining amounts in such tender would be treated as capital gain. In the case where the U.S. Shareholder tenders fewer than all of the U.S. Shareholder's Shares or fewer than all Shares tendered are repurchased, there is a risk that non-tendering U.S. Shareholders, and U.S. Shareholders who tender some but not all of their Shares or fewer than all whose Shares are repurchased, in each case whose percentage interests in the Fund increase as a result of such tender, will be treated as having received a taxable distribution from the Fund. A proportionate increase in a U.S. Shareholder's interest in the Fund will not be treated as a taxable distribution of Shares if the distribution qualifies as an isolated redemption of Shares as described in U.S. Treasury regulations. All U.S. Shareholders are urged to consult their tax advisors.

Under applicable U.S. Treasury regulations, if a U.S. Shareholder recognizes a loss with respect to our Shares of $2 million or more for a non-corporate U.S. Shareholder or $10 million or more for a corporate U.S. Shareholder in any single taxable year (or a greater loss over a combination of years), the U.S. Shareholder must file with the IRS a disclosure statement on Form 8886. Direct U.S. Shareholders of portfolio securities are in many cases exempted from this reporting requirement, but under current guidance, U.S. Shareholders of a RIC are not exempted. Future guidance may extend the current exception from this reporting requirement to U.S. Shareholders of most or all RICs. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. Significant monetary penalties apply to a failure to comply with this reporting requirement. States may also have a similar reporting requirement. U.S. Shareholders should consult their own tax advisers to determine the applicability of these U.S. Treasury regulations in light of their individual circumstances.

We will be required in certain cases to backup withhold and remit to the U.S. Treasury a portion of qualified dividend income, ordinary income dividends and capital gain dividends, and the proceeds of redemption of shares, paid to any Shareholder (a) who has provided either an incorrect tax identification number or no number at all, (b) whom the IRS subjects to backup withholding for failure to report the receipt of interest or dividend income properly or (c) who has failed to certify to us that it is not subject to backup withholding or that it is an "exempt recipient." Backup withholding is not an additional tax and any amounts withheld may be refunded or credited against a Shareholder's federal income tax liability, provided the appropriate information is timely furnished to the IRS.

**Potential Limitation with Respect to Certain U.S. Shareholders on Deductions for Certain Fees and Expenses** 

We do not anticipate that we will be treated as a "publicly offered regulated investment company" (within the meaning of Section 67 of the Code). If we are not treated as such for any calendar year, then, for purposes of computing the taxable income of U.S. Shareholders that are individuals, trusts or estates, (i) our earnings will be computed without taking into account such U.S. Shareholders' allocable shares of the Base Management Fees and Incentive Fees paid to our Adviser and certain of our other expenses, (ii) each such U.S. Shareholder will be treated as having received or accrued a distribution from us in the amount of such U.S. Shareholder's allocable

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share of these fees and expenses for the calendar year, (iii) each such U.S. Shareholder will be treated as having paid or incurred such U.S. Shareholder's allocable share of these fees and expenses for the calendar year and (iv) each such U.S. Shareholder's allocable share of these fees and expenses will be treated as miscellaneous itemized deductions by such U.S. Shareholder. In addition, we would be required to report the relevant income and expenses, including the Base Management Fees, on Form 1099-DIV. Miscellaneous itemized deductions generally are not deductible under current law by individuals, trusts or estates for taxable years before January 1, 2026.

**Taxation of Tax-Exempt U.S. Shareholders** 

A U.S. Shareholder that is a tax-exempt organization for U.S. federal income tax purposes and therefore generally exempt from U.S. federal income taxation may nevertheless be subject to taxation to the extent that it is considered to derive unrelated business taxable income, or UBTI. The direct conduct by a tax-exempt U.S. Shareholder of the activities that we propose to conduct could give rise to UBTI. However, a RIC is a corporation for U.S. federal income tax purposes and its business activities generally will not be attributed to its Shareholders for purposes of determining their treatment under current law. Therefore, a tax-exempt U.S. Shareholder will not be subject to U.S. taxation solely as a result of such Shareholder's ownership of our Shares and receipt of distributions that we pay.

**Taxation of Non-U.S. Shareholders** 

Whether an investment in the Shares is appropriate for a Non-U.S. Shareholder will depend upon that person's particular circumstances. An investment in the Shares by a Non-U.S. Shareholder may have adverse tax consequences as compared to a direct investment in the assets in which we will invest. Non-U.S. Shareholders should consult their tax advisors before investing in our Shares.

If the income from us is not "effectively connected" with a U.S. trade or business carried on by the Non-U.S. Shareholder, distributions of our investment company taxable income that we pay to a Non-U.S. Shareholder will be subject to U.S. withholding tax at a 30% rate to the extent of our current or accumulated earnings and profits unless (i) such distributions qualify for the pass-through rules described below, and such Shareholder could have received the underlying income free of tax; (ii) such Shareholder qualifies for, and complies with the procedures for claiming, an exemption or reduced rate under an applicable income tax treaty; or (iii) such Shareholder qualifies, and complies with the procedures for claiming, an exemption by reason of its status as a foreign government-related entity.

Non-U.S. Shareholders generally are not subject to U.S. federal income tax on capital gains realized on the sale of our shares or on actual or deemed distributions of our net capital gains. If we distribute our net capital gains in the form of deemed rather than actual distributions, a Non-U.S. Shareholder will be entitled to a U.S. federal income tax credit or tax refund equal to the Shareholder's allocable share of the tax we pay on the capital gains deemed to have been distributed. To obtain the refund, the Non-U.S. Shareholder must obtain a U.S. taxpayer identification number and file a U.S. federal income tax return, even if the Non-U.S. Shareholder would not otherwise be required to obtain a U.S. taxpayer identification number or file a U.S. federal income tax return.

At the end of 2015, Congress permanently renewed the pass-through rules under which certain distributions by RICs derived from our "qualified net interest income" (generally, our U.S. source interest income, other than certain contingent interest and interest from obligations of a corporation or partnership in which we are at a least a "10% shareholder", reduced by expenses that are allocable to such income) or paid in connection with our "qualified short-term capital gains" (generally, the excess of our net short-term capital gain over our net long-term capital loss for such taxable year) qualify for an exemption from U.S. withholding tax. As a result, distributions that we designate as "interest-related dividends" or "short-term capital gain dividends" generally will be exempt from U.S. withholding tax if the underlying income is U.S.-source and the Non-U.S. Shareholder could have received the underlying income free of tax. To the extent distributions are paid that do not qualify for

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this exemption (e.g., distributions related to foreign-source income or other income not treated as qualified net interest income or qualified short-term capital gains), some Non-U.S. Shareholders may qualify for a reduced rate of U.S. withholding tax under an applicable tax treaty or for an exemption from U.S. withholding tax by reason of their status as a foreign sovereign or under special treaty provisions for certain foreign pension funds. Prospective investors should consult their own advisers regarding their eligibility for a reduced rate or exemption as described above. We will disclose information regarding our distributions relevant for shareholder tax characteristics on an annual basis.

To qualify for an exemption or reduced rate of U.S. withholding tax (under a treaty, by reason of an exemption for sovereign investors, or under the rules applicable to interest-related dividends or short-term capital gain dividends), a Non-U.S. Shareholder must comply with the U.S. tax certification requirements described below. A Non-U.S. Shareholder must deliver to the applicable withholding agent and maintain in effect a valid IRS Form W-8BEN-E or other applicable tax certification establishing its entitlement to the exemption or reduced rate, or otherwise establishing an exemption from backup withholding.

We have adopted a distribution reinvestment plan that will allow Shareholders to elect to receive distributions in the form of additional shares instead of in cash. If a Non-U.S. Shareholder reinvests distributions in additional shares, such Non-U.S. Shareholder will be treated as if it had received a distribution in the amount of cash that it would have received if it had not made the election. If the distribution is a distribution of our investment company taxable income and is not designated by us as a short-term capital gain dividend or interest-related dividend, if applicable, the amount distributed (to the extent of our current or accumulated earnings and profits) will be subject to withholding of U.S. federal income tax at a 30% rate (or lower rate provided by an applicable income tax treaty) and only the net after-tax amount will be reinvested in our Shares. The Non-U.S. Shareholder will have an adjusted tax basis in the additional Shares purchased through the distribution reinvestment plan equal to the amount of the reinvested distribution. The additional shares will have a new holding period commencing on the day following the day on which the shares are credited to the Non-U.S. Shareholder's account.

In the case of distributions made by the Fund (other than capital gain dividends), additional requirements will apply to Non-U.S. Shareholders that are considered for U.S. federal income tax purposes to be a foreign financial institution or non-financial foreign entity, as well as to Non-U.S. Shareholders that hold their shares through such an institution or entity. In general, an exemption from U.S. withholding tax will be available only if the foreign financial institution, under an agreement it has entered into with the U.S. government or under certain intergovernmental agreements, collects and provides to the U.S. tax authorities information about its accountholders (including certain investors in such institution) and if the non-financial foreign entity has provided the withholding agent with a certification identifying certain of its direct and indirect U.S. owners. Any U.S. taxes withheld pursuant to the aforementioned requirements from distributions paid to affected Non-U.S. Shareholders who are otherwise eligible for an exemption from, or reduction of, U.S. federal withholding taxes on such distributions may only be reclaimed by such Non-U.S. Shareholders by timely filing a U.S. tax return with the IRS to claim the benefit of such exemption or reduction.

A RIC is a corporation for U.S. federal income tax purposes. Under current law, a Non-U.S. Shareholder will not be considered to be engaged in the conduct of a business in the United States solely by reason of its ownership in a RIC. Certain special rules apply to a Non-U.S. Shareholder that is an entity qualifying for tax exemption under Section 892 of the Code. Such a Non-U.S. Shareholders will generally not be treated as engaged in "commercial activity" merely by virtue of its ownership of our Shares and will generally be exempt from withholding tax on distributions received on Shares. Certain special rules apply to such Non-U.S. Shareholders if we qualify as a U.S. real property holding corporation. We do not expect these special rules to apply but there cannot be any assurance thereof.

If the income from us is treated "effectively connected" with a U.S. trade or business carried on by a Non-U.S. Shareholder, then distributions of investment company taxable income, any capital gain dividends, any

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amounts retained by us that are designated as undistributed capital gains and any gains realized upon the sale or exchange of our Shares will be subject to U.S. federal income tax at the graduated rates applicable to U.S. citizens, residents or domestic corporations. Corporate Non-U.S. Shareholders may also be subject to the branch profits tax imposed by the Code.

Non-U.S. Shareholders should consult their own tax advisors with respect to the U.S. federal income tax and withholding tax, and state, local and foreign tax consequences of an investment in the Shares.

U.S. information reporting requirements will apply and backup withholding will not apply to distributions paid on our shares to a Non-U.S. Shareholder, provided the Non-U.S. Shareholder provides to the applicable withholding agent a Form W-8BEN-E (or satisfies certain documentary evidence requirements for establishing that it is not a United States person) or otherwise establishes an exemption. Similarly, information reporting requirements (but not backup withholding) will apply to a payment of the proceeds of a sale of our Shares effected outside the United States by a foreign office of a broker if the broker (i) is a United States person, (ii) derives 50% or more of its gross income for certain periods from the conduct of a trade or business in the United States, (iii) is a "controlled foreign corporation" as to the United States, or (iv) is a foreign partnership that, at any time during its taxable year is more than 50% (by income or capital interest) owned by United States persons or is engaged in the conduct of a U.S. trade or business, unless in any such case the broker has documentary evidence in its records that the holder is a Non-U.S. Shareholder and certain conditions are met, or such holder otherwise establishes an exemption. Payment by a United States office of a broker of the proceeds of a sale of our shares will be subject to both backup withholding and information reporting unless the Non-U.S. Shareholder certifies its status that it is not a United States person under penalties of perjury or otherwise establishes an exemption. Backup withholding is not an additional tax. Any amounts withheld from payments made to a Non-U.S. Shareholder may be refunded or credited against such Shareholder's U.S. federal income tax liability, if any, provided that the required information is timely furnished to the IRS.

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| **ITEM 1A.** | **RISK FACTORS**  |

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*Investing in our Shares involves a number of significant risks. The following information is a discussion of the material risk factors associated with an investment in our Shares specifically, as well as those factors generally associated with an investment in a company with investment objectives, investment policies, capital structure or trading markets similar to ours. In addition to the other information contained in this registration statement, you should consider carefully the following information before making an investment in our Shares. The risks below are not the only risks we face. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. If any of the following events occur our business, financial condition and results of operations could be materially and adversely affected. In such cases, the NAV of our Shares could decline, and you may lose all or part of your investment. The risk factors listed below apply to the Fund and its subsidiaries on a consolidated basis.* 

**Risks Related to Our Business and Structure** 

***We have a limited operating history.***

We are newly formed and converted to a BDC on the Conversion Effective Date, at which point we became the first BDC to be advised by our Adviser. Because we are newly formed, we will have conducted limited business activities as a BDC prior to the completion of this offering, and as such we have limited financial information on which an investor can evaluate an investment in the Fund or our prior performance. Further, we are subject to all of the business risks and uncertainties associated with any young business, including the risk that we will not achieve our investment objective and that the value of an investor's investment could decline substantially or become worthless. To the extent required to comply with diversification requirements during the startup period, we will invest any uninvested cash that we hold in short-term investments, such as cash and cash equivalents, U.S. government securities and high-quality debt instruments maturing in one year or less from the time of investment. As a result, we expect such temporary investments will earn yields substantially lower than the interest income that we will receive in respect of loans to middle market borrowers, and we may not be able to pay any significant distributions during this period, and any such distributions, if any, may be lower than the distributions that may be paid when our portfolio is fully invested.

We will pay a Management Fee to the Adviser throughout this interim period. If the Management Fee and our other expenses exceed the return on the temporary investments, our equity capital will be eroded.

The Fund is a non-diversified, closed-end management investment company, that has elected to be regulated as a BDC, with limited to no operating history as a BDC. As a result, prospective investors have limited to no track record or history as a BDC on which to base their investment decision. We are subject to the business risks and uncertainties associated with recently formed businesses, including the risk that we will not achieve our investment objective and the value of a shareholder's investment could decline substantially or become worthless. While we believe that the past professional experiences of Audax Private Debt's Investment Committee, including investment and financial experience of Audax Private Debt's senior management, will increase the likelihood that the Adviser will be able to manage the Fund successfully, there can be no assurance that this will be the case.

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

The Investment Company Act imposes numerous constraints on the operations of BDCs. See "*Item 1. Business—* Regulation as a Business Development Company" for a discussion of BDC limitations. For example, BDCs are required to invest at least 70% of their total assets in securities of nonpublic or thinly traded U.S. companies, cash, cash equivalents, U.S. government securities and other high-quality debt investments that mature in one year or less. These constraints may hinder the Adviser's ability to take advantage of attractive investment opportunities and to achieve our investment objective.

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We may need to periodically access the debt and equity capital markets to raise cash to fund new investments in excess of our repayments, and we may also need to access the capital markets to refinance existing debt obligations to the extent such maturing obligations are not repaid with availability under our revolving credit facilities or cash flows from operations.

Regulations governing our operation as a BDC affect our ability to raise additional capital, and the ways in which we can do so. Raising additional capital may expose us to risks, including the typical risks associated with leverage, and may result in dilution to our current shareholders. The Investment Company Act limits our ability to incur borrowings and issue debt securities and preferred shares, which we refer to as senior securities, requiring that after any borrowing or issuance the ratio of total assets (less total liabilities other than indebtedness) to total indebtedness plus preferred shares, is at least 150%.

We may need to continue to borrow from financial institutions and issue additional securities to fund our growth. Unfavorable economic or capital market conditions may increase our funding costs, limit our access to the capital markets or could result in a decision by lenders not to extend credit to us. An inability to successfully access the capital markets may limit our ability to refinance our existing debt obligations as they come due and/or to fully execute our business strategy and could limit our ability to grow or cause us to have to shrink the size of our business, which could decrease our earnings, if any. Consequently, if the value of our assets declines or we are unable to access the capital markets we may be required to sell a portion of our investments and, depending on the nature of our leverage, repay a portion of our indebtedness at a time when this may be disadvantageous. Also, any amounts that we use to service our indebtedness would not be available for distributions to our Common Shareholders. If we borrow money or issue senior securities, we will be exposed to typical risks associated with leverage, including an increased risk of loss.

If we issue Preferred Shares, the Preferred Shares would be another form of leverage and rank "senior" to our Common Shares in our capital structure. Preferred Shareholders, if any, will have separate voting rights on certain matters and might have other rights, preferences or privileges more favorable than those of our Common Shareholders. The issuance of Preferred Shares could have the effect of delaying, deferring or preventing a transaction or a change of control that might involve a premium price for holders of our Common Shares or otherwise be in the best interest of holders of our Common Shares. Holders of our Common Shares will directly or indirectly bear all of the costs associated with offering and servicing any Preferred Shares that we issue. In addition, any interests of Preferred Shareholders may not necessarily align with the interests of holders of our Common Shares and the rights of holders of shares of Preferred Shares to receive distributions would be senior to those of holders of our Common Shares.

Our Board may decide to issue additional Shares to finance our operations rather than issuing debt or other senior securities. However, we generally will not be able to issue and sell our Shares at a price below net asset value per share. We may, however, elect to issue and sell our Shares, or warrants, options or rights to acquire our Shares, at a price below the then-current net asset value of our Shares if our Board determines that the sale is in the Fund's best interest and the best interests of the Fund's Shareholders, and the Fund's Shareholders have approved our policy and practice of making these sales within the preceding 12 months. We may in the future seek such approval; however, there is no assurance such approval will be obtained. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the market value of those securities (less any distribution commission or discount). In the event we sell our Shares at a price below net asset value per share, existing shareholders will experience net asset value dilution. This dilution would occur as a result of the sale of shares at a price below the then current net asset value per share and would cause a proportionately greater decrease in the Shareholders' interest in our earnings and assets and their voting interest in us than the increase in our assets resulting from such issuance. As a result of any such dilution, our market price per share may decline. Because the number of Shares that could be so issued and the timing of any issuance is not currently known, the actual dilutive effect cannot be predicted.

In addition to issuing securities to raise capital as described above, we could securitize our investments to generate cash for funding new investments. To securitize our investments, we likely would create a wholly-

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owned subsidiary, contribute a pool of loans to the subsidiary and have the subsidiary issue primarily investment grade debt securities to purchasers who we would expect would be willing to accept a substantially lower interest rate than the loans earn. The term "subsidiary" includes entities that engage in investment activities in securities or other assets that are primarily controlled by the Fund. Further, the Fund will treat a wholly-owned subsidiary's assets as assets of the Fund for purposes of determining compliance with various provisions of the Investment Company Act applicable to the Fund, including those relating to investment policies (Section 8), capital structure and leverage (Sections 18 and 61) and affiliated transactions and custody (Sections 17 and 57). The Fund would generally expect to consolidate any such wholly-owned subsidiary for purposes of our financial statements and compliance with the Investment Company Act. In addition, the Board will comply with the provisions of Section 15 of the Investment Company Act with respect to a wholly-owned subsidiary's investment advisory contract, if applicable. The Fund currently has three wholly-owned subsidiaries, APCF SPV I, LLC, Audax Private Credit Subsidiary, LLC, and APCF Equity, LLC (the "Subsidiaries"). Each Subsidiary does not have an investment advisory contract and uses the same custodian as the Fund. We would retain all or a portion of the equity in the securitized pool of loans. Our retained equity would be exposed to any losses on the portfolio of investments before any of the debt securities would be exposed to the losses. An inability to successfully securitize our investment portfolio could limit our ability to grow or fully execute our business and could adversely affect our earnings, if any. The successful securitization of our investment could expose us to losses because the portions of the securitized investments that we would typically retain tend to be those that are riskier and more apt to generate losses. The Investment Company Act also may impose restrictions on the structure of any securitization. In connection with any future securitization of investments, we may incur greater set-up and administration fees relating to such vehicles than we have in connection with financing of our investments in the past. See "*Item 1A. Risk Factors—Risks Related to Our Portfolio Company Investments—We may securitize certain of our investments, which may subject us to certain structured financing risks*."

***We intend to borrow money, which magnifies the potential for gain or loss and increases the risk of investing in us.***

As part of our business strategy, we intend to borrow from and may in the future issue senior debt securities to banks, insurance companies and other lenders. Holders of these loans or senior securities would have fixed-dollar claims on our assets that have priority over the claims of our shareholders. If the value of our assets decreases, leverage will cause our NAV to decline more sharply than it otherwise would have without leverage. Similarly, any decrease in our income would cause our net income to decline more sharply than it would have if we had not borrowed. This decline could negatively affect our ability to make distribution payments on our Shares. In addition, we would have to service any additional debt that we incur, including interest expense on debt and distributions on Preferred Shares that we may issue, as well as the fees and costs related to the entry into or amendments to debt facilities. Our ability to service our borrowings depends largely on our financial performance and is subject to prevailing economic conditions and competitive pressures. In addition, the Management Fee is based in part on our net assets, which may give our Adviser an incentive to use leverage to make additional investments. See "*Item 1A. Risk Factors—Risks Related to Our Business and Structure—Even in the event the value of an investor's investment declines, the Base Management Fee and, in certain circumstances, the Incentive Fee will still be payable to the Adviser*." The amount of leverage that we employ will depend on our Adviser's and our Board's assessment of market and other factors at the time of any proposed borrowing. We cannot assure investors that we will be able to obtain credit at all or on terms acceptable to us.

We intend to enter into credit facilities or issue debt pursuant to indentures that may impose financial and operating covenants that restrict our business activities, remedies on default and similar matters. Our compliance with these covenants depends on many factors, some of which are beyond our control. Failure to comply with these covenants could result in a default. If we were unable to obtain a waiver of a default from the lenders or holders of that indebtedness, as applicable, those lenders or holders could accelerate repayment under that indebtedness. An acceleration could have a material adverse impact on our business, financial condition and results of operations. Lastly, we may be unable to obtain additional leverage, which would, in turn, affect our return on capital.

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***Our indebtedness could adversely affect our business, financial conditions or results of operations.***

We cannot assure investors that our business will generate sufficient cash flow from operations or that future borrowings will be available to us under our credit facilities or otherwise in an amount sufficient to enable us to pay our indebtedness or to fund our other liquidity needs. We may need to refinance all or a portion of our indebtedness on or before it matures. We cannot assure investors that we will be able to refinance any of our indebtedness on commercially reasonable terms or at all. If we cannot service our indebtedness, we may have to take actions such as selling assets or seeking additional equity. We cannot assure investors that any such actions, if necessary, could be effected on commercially reasonable terms or at all, or on terms that would not be disadvantageous to our shareholders or on terms that would not require us to breach the terms and conditions of our existing or future debt agreements.

***The Small Business Credit Availability Act allows us to incur additional leverage and would require us to offer liquidity to our Shareholders.***

Under the Investment Company Act, a BDC generally is required to maintain asset coverage of 200% for senior securities representing indebtedness (such as borrowings from banks or other financial institutions) or stock (such as preferred stock). The Small Business Credit Availability Act (the "SBCAA"), which was signed into law on March 23, 2018, provides that a BDC's required asset coverage under the Investment Company Act may be reduced from 200% (equivalent of $1 of debt outstanding for each $1 equity) to 150% (equivalent to $2 of debt outstanding for each $1 of equity). This reduction in asset coverage would permit a BDC to double the amount of leverage it may utilize, subject to certain approval, timing and reporting requirements, including either Shareholder approval or approval of a majority of the directors who are not "interested persons" (as defined in the Investment Company Act) of the BDC and who have no financial interest in the arrangement. The limited partners of the Limited Partnership approved the lower asset coverage ratio for the Fund prior to the Conversion. As a result, investors may face increased investment risk. We may not be able to implement our strategy to utilize additional leverage successfully. See "*Item 1A. Risk Factors—Risks Related to Our Business and Structure—We may face increasing competition for investment opportunities, which could delay deployment of our capital, reduce returns and result in losses*." Any impact on returns or equity or our business associated with additional leverage may not outweigh the additional risk. See "*Item 1A. Risk Factors—Risks Related to Our Business and Structure—We intend to borrow money, which magnifies the potential for gain or loss and increases the risk of investing in us*."

As a non-traded BDC, if we receive the relevant approval to increase our authorized leverage, we will be required to offer our Shareholders the opportunity to sell their Shares over the next year following the calendar quarter in which the approval was obtained.

***We may default under our future credit facilities.***

In the event we default under a credit facility or other financing arrangements, our business could be adversely affected as we may be forced to sell a portion of our investments quickly and prematurely at what may be disadvantageous prices to us in order to meet our outstanding payment obligations and/or support working capital requirements under such credit facility, any of which would have a material adverse effect on our business, financial condition, results of operations and cash flows. In addition, following any such default, the agent for the lenders under such borrowing facility could assume control of the disposition of any or all of our assets, including the selection of such assets to be disposed and the timing of such disposition, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

***Provisions in a credit facility may limit our investment discretion.***

A credit facility may be backed by all or a portion of our loans and securities on which the lenders will have a security interest. We may pledge up to 100% of our assets and may grant a security interest in all of our assets

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under the terms of any debt instrument we enter into with lenders. We expect that any security interests we grant will be set forth in a pledge and security agreement and evidenced by the filing of financing statements by the agent for the lenders. In addition, we expect that the custodian for our securities serving as collateral for such loan would include in its electronic systems notices indicating the existence of such security interests and, following notice of occurrence of an event of default, if any, and during its continuance, will only accept transfer instructions with respect to any such securities from the lender or its designee. If we were to default under the terms of any debt instrument, the agent for the applicable lenders would be able to assume control of the timing of disposition of any or all of our assets securing such debt, which would have a material adverse effect on our business, financial condition, results of operations and cash flows.

In addition, any security interests and/or negative covenants required by a credit facility may limit our ability to create liens on assets to secure additional debt and may make it difficult for us to restructure or refinance indebtedness at or prior to maturity or obtain additional debt or equity financing. In addition, if our borrowing base under a credit facility were to decrease, we may be required to secure additional assets in an amount sufficient to cure any borrowing base deficiency. In the event that all of our assets are secured at the time of such a borrowing base deficiency, we could be required to repay advances under a credit facility or make deposits to a collection account, either of which could have a material adverse impact on our ability to fund future investments and to make distributions.

In addition, we may be subject to limitations as to how borrowed funds may be used, which may include restrictions on geographic and industry concentrations, loan size, payment frequency and status, average life, collateral interests and investment ratings, as well as regulatory restrictions on leverage which may affect the amount of funding that may be obtained. There may also be certain requirements relating to portfolio performance, including required minimum portfolio yield and limitations on delinquencies and charge-offs, a violation of which could limit further advances and, in some cases, result in an event of default. An event of default under a credit facility could result in an accelerated maturity date for all amounts outstanding thereunder, which could have a material adverse effect on our business and financial condition. This could reduce our liquidity and cash flow and impair our ability to grow our business.

***We may face increasing competition for investment opportunities, which could delay deployment of our capital, reduce returns and result in losses.***

We compete for investments with other BDCs and investment funds (including registered investment companies, private equity funds and mezzanine funds), as well as traditional financial services companies such as commercial and investment banks and other sources of funding, such as issuers of collateral loan obligations and other structured loan funds. Moreover, alternative investment vehicles, such as hedge funds, have begun to invest in areas in which they have not traditionally invested, including making investments in our target market of privately owned U.S. companies. As a result of these new entrants, competition for investment opportunities in privately owned U.S. companies could intensify. Many of our competitors are substantially larger and have considerably greater financial, technical and marketing resources than we do. For example, some competitors may have a lower cost of capital and access to funding sources that are not available to us. In addition, some of our competitors may have higher risk tolerances or different risk assessments than we have. These characteristics could allow our competitors to consider a wider variety of investments, establish more relationships and offer prospective borrowers better pricing and more flexible structuring than we are able to do.

We may lose investment opportunities if we do not match our competitors' pricing, terms and structure criteria. If we are forced to match these criteria to make investments, we may not be able to achieve acceptable returns on our investments or lose capital. Any increase in the number and/or the size of our competitors could force us to accept less attractive investment terms or not lend. Furthermore, many of our competitors are not subject to the regulatory restrictions that the Investment Company Act imposes on us as a BDC or the source of income, asset diversification and distribution requirements we must satisfy to maintain our RIC status. Such competitive pressures may adversely affect our business, financial condition, results of operations and cash flows. As a result

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of this competition, we may not be able to take advantage of attractive investment opportunities from time to time. Also we may not be able to identify and make investments that are consistent with our investment objective.

***If we are unable to source investments, access financing or manage future growth effectively, we may be unable to achieve our investment objective.***

Our ability to achieve our investment objective depends on our Investment Committee's ability to identify, evaluate, finance and invest in suitable companies that meet our investment criteria. Accomplishing this result on a cost-effective basis is largely a function of our marketing capabilities, our management of the investment process, our ability to provide efficient services and our access to financing sources on acceptable terms, including equity financing. Moreover, our ability to structure investments may also depend upon the participation of other prospective investors. For example, our ability to offer loans above a certain size and to structure loans in a certain way may depend on our ability to partner with other investors. As a result, we could fail to capture some investment opportunities if we cannot provide "one-stop" financing to a potential portfolio company either alone or with other investment partners.

In addition to monitoring the performance of our existing investments, members of our investment team may also be called upon to provide managerial assistance to our portfolio companies. These demands on their time may distract them or slow the rate of investment. To grow, our Adviser may need to hire, train, supervise and manage new employees. Failure to manage our future growth effectively could have a material adverse effect on our growth prospects and ability to achieve our investment objective.

***Even in the event the value of an investor's investment declines, the Base Management Fee and, in certain circumstances, the Incentive Fee will still be payable to the Adviser.***

Even in the event the value of an investor's investment declines, the Base Management Fee and, in certain circumstances, the Incentive Fee will still be payable to the Adviser. The Base Management Fee is calculated as a percentage of the value of our net assets at a specific time, and may give our Adviser an incentive to use leverage to make additional investments. In addition, the Management Fee is payable regardless of whether the value of our net assets or an investor's investment have decreased. The use of increased leverage may increase the likelihood of default, which would disfavor holders of our Shares. Given the subjective nature of the investment decisions that our Adviser will make on our behalf, we may not be able to monitor this potential conflict of interest.

One component of the Incentive Fee is calculated as a percentage of Pre-Incentive Fee Net Investment Income. Since Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital gains or losses, it is possible that we may pay an Incentive Fee in a quarter in which we incur a loss. For example, if we receive Pre-Incentive Fee Net Investment Income in excess of the quarterly minimum Hurdle Rate, we will pay the applicable Incentive Fee even if we have incurred a loss in that quarter due to realized and unrealized capital losses.

Also, one component of the Incentive Fee is calculated annually based upon our realized capital gains, computed net of realized capital losses and unrealized capital depreciation on a cumulative basis. As a result, we may owe the Adviser an Incentive Fee during one year as a result of realized capital gains on certain investments, and then incur significant realized capital losses and unrealized capital depreciation on the remaining investments in our portfolio during subsequent years. Incentive Fees earned in prior years cannot be clawed back even if we later incur losses.

In addition, the Incentive Fee payable by us to the Adviser may create an incentive for the Adviser to make investments on our behalf that are risky or more speculative than would be the case in the absence of such a compensation arrangement. The Adviser receives the Incentive Fee based, in part, upon capital gains realized on

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our investments. Unlike the portion of the Incentive Fee that is based on income, there is no hurdle rate applicable to the portion of the Incentive Fee based on capital gains. As a result, the Adviser may have an incentive to invest more in companies whose securities are likely to yield capital gains, as compared to income-producing investments. Such a practice could result in our making more speculative investments than would otherwise be the case, which could result in higher investment losses, particularly during cyclical economic downturns.

***We will be an "emerging growth company" under the JOBS Act, and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our securities less attractive to investors.***

We will be an "emerging growth company" as defined in the JOBS Act until the earlier of (a) the last day of the fiscal year (i) following the fifth anniversary of the completion of the initial offering, (ii) in which we have total annual gross revenue of at least $1.235 billion, or (iii) in which we are deemed to be a large accelerated filer, which means the market value of our Shares that is held by non-affiliates exceeds $700 million as of the prior June 30th, and (b) the date on which we have issued more than $1 billion in non-convertible debt during the prior three-year period. For so long as we remain an "emerging growth company" we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. We cannot predict if investors will find our Shares less attractive because we will rely on some or all of these exemptions.

In addition, Section 107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We intend to take advantage of such extended transition periods.

***Our status as an "emerging growth company" under the JOBS Act may make it more difficult to raise capital as and when we need it.***

Because of the exemptions from various reporting requirements provided to us as an "emerging growth company" and because we will have an extended transition period for complying with new or revised financial accounting standards, we may be less attractive to investors and it may be difficult for us to raise additional capital as and when we need it. Investors may be unable to compare our business with other companies in our industry if they believe that our financial accounting is not as transparent as other companies in our industry. If we are unable to raise additional capital as and when we need it, our financial condition and results of operations may be materially and adversely affected.

***Efforts to comply with the Sarbanes-Oxley Act involve significant expenditures.***

We will be subject to the reporting requirements of the Exchange Act, the requirements of the Sarbanes-Oxley Act and the related rules and regulations promulgated by the SEC. These requirements may place a strain on our systems and resources. The Exchange Act requires that we file annual, quarterly and current reports with respect to our business and financial condition. The Sarbanes-Oxley Act requires that we maintain effective disclosure controls and procedures and internal controls over financial reporting, which are discussed below. In order to maintain and improve the effectiveness of our disclosure controls and procedures and internal controls, significant resources and management oversight are required. These activities may divert management's attention from other business concerns, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. We will implement, procedures, processes, policies and practices for the purpose of addressing the standards and requirements applicable to public companies. As a result, we expect to incur significant additional expenses, which may negatively impact our financial performance and our ability to

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make distributions. This process also will result in a diversion of our management's time and attention. We do not know when our evaluation, testing and remediation actions will be completed or its impact on our operations. In addition, we may be unable to ensure that the process is effective or that our internal controls over financial reporting are or will be effective.

The systems and resources necessary to comply with public company reporting requirements will increase further once we cease to be a "non-accelerated filer" under Rule 12b-2 of the Exchange Act or an "emerging growth company" under the JOBS Act. As long as we remain a non-accelerated filer or an emerging growth company, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. This may increase the risk that material weaknesses or other deficiencies in our internal control over financial reporting go undetected.

***We will be obligated to maintain proper and effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act, and failure to achieve and maintain effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and the value of the Shares.***

We will be obligated to maintain proper and effective internal controls over financial reporting, including the internal control evaluation and certification requirements of Section 404 of the Sarbanes-Oxley Act and related rules and regulations of the SEC. However, we will not be required to comply with all of the requirements under Section 404 of the Sarbanes-Oxley Act until the later of the date we are no longer a non-accelerated filer or the date we are no longer an emerging growth company under the JOBS Act. Accordingly, our internal controls over financial reporting may not meet all of the standards contemplated by Section 404 of the Sarbanes-Oxley Act that we will eventually be required to meet. Specifically, we will be required to conduct annual management assessments of the effectiveness of our internal controls over financial reporting, however our independent registered public accounting firm will not be required to formally attest to the effectiveness of our internal control over financial reporting until the later of the date we are no longer a non-accelerated filer or the date we are no longer an emerging growth company under the JOBS Act.

If we are not able to comply with the requirements of Section 404 of the Sarbanes-Oxley Act or maintain adequate compliance, our operations, financial reporting or financial results could be adversely affected. Matters impacting our internal controls may cause us to be unable to report our financial information on a timely basis and thereby subject us to adverse regulatory consequences, including sanctions by the SEC or violations of applicable stock exchange listing rules, and result in a breach of the covenants under the agreements governing any of our financing arrangements. There could also be a negative reaction in the financial markets due to a loss of investor confidence in us and the reliability of our financial statements. Confidence in the reliability of our financial statements could also suffer if we or our independent registered public accounting firm were to report a material weakness in our internal controls over financial reporting.

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

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

Any failure to comply with the requirements imposed on BDCs by the Investment Company Act could cause the SEC to bring an enforcement action against us and/or expose us to claims of private litigants. In addition, upon approval of a majority of our Shareholders, we may elect to withdraw our status as a BDC. If we decide to withdraw our election, or if we otherwise fail to qualify, or maintain our qualification, as a BDC, we may be subject to substantially greater regulation under the Investment Company Act as a closed-end investment company. Compliance with such regulations would significantly decrease our operating flexibility, and could significantly increase our costs of doing business.

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

We could experience fluctuations in our quarterly operating results due to a number of factors, including our ability or inability to make investments in companies that meet our investment criteria, the interest rate payable and default rates on the debt securities we acquire, inflation, energy shortages, the level of our expenses, variations in and timing of the recognition of realized and unrealized gains or losses, the degree to which we encounter competition in our markets, and general economic conditions. As a result of these factors, results for any previous period should not be relied upon as indicative of performance in future periods. These occurrences could have a material adverse effect on our results of operations, the value of your investment and our ability to pay distributions.

***Because our business model will depend to a significant extent upon relationships with corporations, financial institutions and investment firms, the inability of our Adviser to maintain or develop these relationships, or the failure of these relationships to generate investment opportunities, could adversely affect our business.***

Our Adviser depends on its relationships with corporations, financial institutions and investment firms, and we will rely indirectly to a significant extent upon these relationships to provide us with potential investment opportunities. If our Adviser fails to maintain its existing relationships or develop new relationships or sources of investment opportunities, we may not be able to grow our investment portfolio. In addition, individuals with whom our Adviser has relationships are not obligated to provide us with investment opportunities. Therefore, we can offer no assurance that such relationships will generate investment opportunities for us.

***Certain investors are limited in their ability to make significant investments in us.***

Investment companies regulated under the Investment Company Act are restricted from acquiring directly or through a controlled entity more than 3% of our total outstanding voting shares (measured at the time of the acquisition), unless these funds comply with an exemption under the Investment Company Act as well as other limitations under the Investment Company Act that would restrict the amount that they are able to invest in our securities. Private funds that are excluded from the definition of "investment company" either pursuant to Section 3(c)(1) or 3(c)(7) of the Investment Company Act are also subject to this restriction. As a result, certain investors may be precluded from acquiring additional shares at a time that they might desire to do so.

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

We are classified as a non-diversified investment company within the meaning of the Investment Company Act, which means that we are not limited by the Investment Company Act with respect to the proportion of our assets that we may invest in securities of a single issuer. Under the Investment Company Act, a "diversified" investment company is required to invest at least 75% of the value of its total assets in cash and cash items, government securities, securities of other investment companies and other securities limited in respect of any one issuer to an amount not greater than 5% of the value of the total assets of such company and no more than 10% of the outstanding voting securities of such issuer. As a non-diversified investment company, we are not subject to this requirement. To the extent that we assume large positions in the securities of a small number of issuers, our net asset value may fluctuate to a greater extent than that of a diversified investment company as a result of changes in the financial condition or the market's assessment of the issuer. We may also be more susceptible to any single economic or regulatory occurrence than a diversified investment company. Beyond our asset diversification requirements as a RIC under the Code, we will not have fixed guidelines for diversification, and our investments could be concentrated in relatively few portfolio companies. Although we are classified as a non-diversified investment company within the meaning of the Investment Company Act, we will maintain the flexibility to operate as a diversified investment company. To the extent that we operate as a diversified investment company in the future, we may be subject to greater risk.

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***The Fund may be restricted from initiating transactions as a result of the receipt of material non-public information.***

Audax Private Debt funds and investment platforms regularly obtain non-public information regarding various target companies and other investment opportunities. In general, Audax Private Debt imputes non-public information received by one investment team within Audax Private Debt to all other investment professionals. As Audax Private Debt and affiliated professionals may acquire confidential or material nonpublic information ("MNPI"), the Fund and/or other Affiliated Funds may be restricted from initiating transactions in certain securities, including, as a result of the receipt of MNPI by another investment team or professional within Audax Private Debt.

Non-public information received by one investment team within Audax Private Debt is likely to restrict trading on a firm-wide basis. As a result, the Fund may, in certain circumstances, decline to receive non-public information regarding a company.

Further, non-disclosure agreements associated with transactions (including transactions entered into by other Affiliated Funds) often contain contractual trading restrictions, including standstill and non-circumvent provisions, which could prevent the Fund from acquiring or disposing of investments in an issuer, potentially for extended periods. Such agreements could also restrict the Fund's ability to share certain information with shareholders relevant to the Fund or its portfolio investments.

Separately, certain counterparties may disqualify the Fund from transacting with such counterparties or their affiliates as a result of the activities of other businesses of Audax Private Debt and its affiliates.

***We may have no or limited insurance against certain catastrophic losses.***

Certain losses of a catastrophic nature, such as wars, earthquakes, typhoons, terrorist attacks or other similar events, may be either uninsurable or insurable at such high rates that to maintain such coverage would cause an adverse impact on the related investments. In general, losses related to terrorism are becoming harder and more expensive to insure against. Some insurers are excluding terrorism coverage from their all-risk policies. In some cases, the insurers are offering significantly limited coverage against terrorist acts for additional premiums, which can greatly increase the total cost of casualty insurance for a property. As a result, all investments may not be insured against terrorism. If a major uninsured loss occurs, we could lose both invested capital in and anticipated profits from the affected investments.

***Cybersecurity risks and cyber incidents may adversely affect our business or those of our portfolio companies by causing a disruption to our operations, a compromise or corruption of confidential information and/or damage to business relationships, or those of our portfolio companies, all of which could negatively impact our business, results of operations or financial condition.***

A cyber incident is considered to be any adverse event that threatens the confidentiality, integrity or availability of our information resources. These incidents may be an intentional attack or an unintentional event and could involve gaining unauthorized access to, use, alteration or destruction of our information systems for purposes of misappropriating assets, obtaining ransom payments, stealing confidential information, corrupting data or causing operational disruption, or may involve phishing. The result of these incidents may include disrupted operations, misstated or unreliable financial data, liability for stolen information, misappropriation of assets, increased cybersecurity protection and insurance costs, litigation and damage to our business relationships. This could result in significant losses, reputational damage, litigation, regulatory fines or penalties, or otherwise adversely affect our business, financial condition or results of operations. In addition, we may be required to expend significant additional resources to modify our protective measures and to investigate and remediate vulnerabilities or other exposures arising from operational and security risks. The costs related to cybersecurity incidents may not be fully insured or indemnified. As our and our portfolio companies' reliance on technology

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has increased, so have the risks posed to our information systems, both internal and those provided by our Adviser and third-party service providers, and the information systems of our portfolio companies. We, our Adviser and its affiliates have implemented processes, procedures and internal controls to help mitigate cybersecurity risks and cyber intrusions, but these measures, as well as our increased awareness of the nature and extent of a risk of a cyber incident, may be ineffective and do not guarantee that a cyber incident will not occur or that our financial results, operations or confidential information will not be negatively impacted by such an incident.

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

Additionally, investments of Audax Private Debt Funds, including the Fund, and other Audax Private Debt entities have involved and may in the future involve companies that have experienced cyber-events and that, given the rise of cybersecurity incidents, may become involved in future cyber events. Cybersecurity events also could affect other Audax Private Debt and/or affiliated entities. Such cyber security attacks are evolving and include, but are not limited to, malicious software, attempts to gain unauthorized access to data, and other electronic security breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information and corruption of data.

A cybersecurity breach may cause the Fund to lose proprietary information, suffer data corruption or expose information to misuse. Sensitive information which may be breached in the event of a cybersecurity threat includes, without limitation, information regarding the Fund's investment activities and Shareholders. Cybersecurity breaches of Audax Private Debt's and the Fund's third-party service providers or portfolio investments may also subject the Fund to many of the same risks associated with direct cybersecurity breaches. If such events were to materialize, they could, among other things, (i) lead to losses of sensitive information or capabilities essential to Audax Private Debt's, the Fund's, and/or the Fund's portfolio company's operations, (ii) have a material adverse effect on Audax Private Debt's, the Fund's and/or the portfolio company's reputations, financial positions, results of operations or cash flows, (iii) lead to financial losses from remedial actions, loss of business or potential liability, or (iv) lead to the disclosure of Fund shareholders' personal information or other sensitive information.

The failure of these systems and/or of disaster recovery plans for any reason could cause significant interruptions in Audax Private Debt's, the Fund's and/or a portfolio company's operations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information of any shareholder (and, if applicable, its underlying investors or beneficial owners and/or control persons) or the intellectual property and trade secrets of Audax Private Debt and/or a portfolio company. Such a failure could result in reputational harm to Audax Private Debt, the Fund and/or the affected portfolio investment, subject any such entity and its affiliates to legal claims and otherwise adversely affect its business and financial performance. Cybersecurity risks also require us to undertake ongoing preventative measures and to incur compliance costs.

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***We and our portfolio companies will be subject to regulations related to privacy, data protection, wider data and information security, and any failure to comply with these requirements could result in fines, sanctions or other penalties, which could have a material adverse effect on our business and our reputation.***

The adoption, interpretation and application of consumer protection, data protection, wider data and/or privacy laws and regulations in the United States, Europe or other jurisdictions (collectively, "Privacy Laws") could significantly impact current and planned privacy and information security related practices, the collection, use, sharing, retention and safeguarding of data, including personal data, and current and planned business activities of the Adviser, Audax Private Debt and us and/or our portfolio companies and service providers, and increase compliance costs and require the dedication of additional time and resources to compliance for such entities. A failure to comply with such Privacy Laws by any such entity could result in fines, sanctions or other penalties, which could materially and adversely affect the results of operations and overall business, as well as have a negative impact on reputation and our performance. As Privacy Laws are implemented, interpreted and applied, compliance costs are likely to increase, particularly in the context of ensuring that adequate data protection and data transfer mechanisms are in place.

For example, California has passed the California Consumer Privacy Act of 2018 and the California Privacy Rights Act of 2020, each of which broadly impacts businesses that handle various types of personal data. Such laws impose stringent legal and operational obligations on regulated businesses, as well as the potential for significant penalties.

Other jurisdictions, including other U.S. states, already have, have proposed or are considering similar Privacy Laws, which impose, or could impose if enacted, similarly significant costs, potential liabilities and operational and legal obligations. Such Privacy Laws and regulations are expected to vary from jurisdiction to jurisdiction, thus increasing costs, operational and legal burdens, and the potential for significant liability for regulated entities, which could include Audax Private Debt and us and/or our portfolio companies.

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

Our business will be highly dependent on the communications and information systems of Audax Private Debt, (including the Adviser), its affiliates and third parties (such as certain information technology services utilized by the Adviser on our behalf). Further, in the ordinary course of our business we or the Adviser engage certain third party service providers to provide us with services necessary for our business. Any failure or interruption of those systems or services, including as a result of the termination or suspension of an agreement with any third-party service providers, could cause delays or other problems in our activities. Our financial, accounting, data processing, backup or other operating systems and facilities may fail to operate properly or become disabled or damaged as a result of a number of factors including events that are wholly or partially beyond our control and adversely affect our business. There could be:

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• outages due to idiosyncratic issues at specific providers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• cyber-attacks.

These events, in turn, could have a material adverse effect on our operating results and negatively affect our ability to pay distributions to our Shareholders.

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***Our Board may change our investment objective, operating policies and strategies without prior notice or Shareholder approval.***

Our Board has the authority to change our investment objective and modify or waive certain of our operating policies and strategies without prior notice (except as required by the Investment Company Act) and without Shareholder approval. However, absent Shareholder approval, we may not change the nature of our business so as to cease to be a BDC and we may not withdraw our election as a BDC. We cannot predict the effect any changes to our current operating policies or strategies would have on our business, operating results and value of our Shares. Nevertheless, the effects may adversely affect our business and impact our ability to make distributions.

***Compliance with the SEC's Regulation Best Interest may negatively impact our ability to raise capital, which would harm our ability to achieve our investment objectives.***

Broker-dealers must comply with Regulation Best Interest, which, among other requirements, enhances the prior standard of conduct for broker-dealers and natural persons who are associated persons of a broker-dealer when recommending to a retail customer any securities transaction or investment strategy involving securities to a retail customer. The impact of Regulation Best Interest on broker-dealers participating in our private offering of Shares cannot be determined at this time, but it may negatively impact whether broker-dealers and their associated persons recommend the offering to retail customers. If Regulation Best Interest reduces our ability to raise capital in the offering, it would harm our ability to create a diversified portfolio of investments and achieve our investment objectives and would result in our fixed operating costs representing a larger percentage of our gross income.

***If the Adviser or certain of its affiliates are deemed a "Bad Actor", it could negatively impact our ability to raise capital.***

Rule 501 and Rule 506 of Regulation D under the Securities Act bar issuers deemed to be "bad actors" from relying on Rule 506 in connection with private placements (the "disqualification rule"). Specifically, an issuer is precluded from conducting offerings that rely on the exemption from registration under the Securities Act provided by Rule 506 ("Rule 506 offerings") if a "covered person" of the issuer has been the subject of a "disqualifying event" (each as defined below). "Covered persons" include, among others, the issuer, affiliated issuers, any investment manager of an issuer that is a pooled investment fund, any solicitor of the issuer, any director, executive officer or other officer participating in the offering of the issuer, any general partner or managing member of the foregoing entities, any promoter of the issuer and any beneficial owner of 20% or more of the issuer's outstanding voting equity securities, calculated on the basis of voting power. A "disqualifying event" includes, among other things, certain (a) criminal convictions and court injunctions and restraining orders issued in connection with the purchase or sale of a security or false filings with the SEC; (b) final orders from the CFTC, federal banking agencies and certain other regulators that bar a person from associating with a regulated entity or engaging in the business of securities, insurance or banking or that are based on certain fraudulent conduct; (c) SEC disciplinary orders relating to investment advisers, brokers, dealers and their associated persons; (d) SEC cease-and-desist orders relating to violations of certain anti-fraud provisions and registration requirements of the federal securities laws; (e) suspensions or expulsions from membership in a self-regulatory organization ("SRO") or from association with an SRO member; and (f) U.S. Postal Service false representation orders.

A disqualification will occur only in the case of a disqualifying event of a covered person that occurs on or after April 10, 2015, although issuers must disclose to potential investors in a Rule 506 offering disqualifying events of covered persons that occurred before September 23, 2013. The rule provides an exception from disqualification if the issuer can show that it did not know and, in the exercise of reasonable care, could not have known, that the issuer or any other covered person had a disqualifying event, although an issuer will not be able to establish that it has exercised reasonable care unless it has made, in light of the circumstances, factual inquiry into whether any disqualifications exist.

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The Adviser has a large number of affiliates, many of whom may be deemed to be affiliated issuers of us and, therefore, covered persons of us for purposes of our Rule 506 offerings. Thus, while the Adviser has made, and on a periodic basis will continue to make, inquiries into whether any persons that the Adviser has determined to be affiliated issuers have been subject to any disqualifying events, in some circumstances the Adviser's ability to determine whether we would be disqualified from relying on Rule 506 may depend on cooperation of third parties over whom the Adviser may have limited control and influence.

If any of Audax Private Debt's covered persons, including any affiliated issuer of us, is subject to a disqualifying event, we could lose the ability to raise capital in a future Rule 506 offering for a significant period of time and our business, financial condition and results of operations could be materially and adversely affected.

***Compliance with anti-money laundering requirements could require the Adviser to provide to governmental authorities information about our Shareholders and could require that a Shareholder's funds be frozen or that the Shareholder withdraw from the Fund.***

The Fund and the Adviser will be authorized, without the consent of any person, including any Shareholder, to take such action as they determine in their sole discretion to be reasonably necessary or advisable to comply, or to cause us to comply, with any applicable laws and regulations, including any anti-money laundering or counter-terrorist financing laws, rules, regulations, directives or special measures. In addition, the Fund and the Adviser may disclose, without the consent of any person, including any Shareholder, to governmental authorities, SROs and financial institutions information concerning us and one or more of the shareholders that the Fund or the Adviser determines in our or its sole discretion is necessary or advisable to comply with applicable laws and regulations, including any anti-money laundering or counter-terrorist financing laws or regulations, and each shareholder will be required to provide the Fund and the Adviser all information that the Fund or the Adviser determines in our or its sole discretion to be advisable or necessary to comply with such laws and regulations. The Fund or the Adviser may be required by applicable law to freeze a shareholder's funds or cause such shareholder to withdraw or compulsorily withdraw such shareholder from the Fund.

***Submission to Jurisdiction; Waiver of Jury Trial***

Pursuant to the LLC Agreement, each holder of Shares accepts the non-exclusive jurisdiction of courts of the State of New York located in New York County or the U.S. District Court for the Southern District of New York located in New York County. Submission to such jurisdiction may result in litigation in a venue that a Shareholder could view as inconvenient or less favorable in the absence of such provision. Furthermore, each Shareholder, by becoming a member of the Fund and agreeing to be bound by the terms of the LLC Agreement, waives its right to a trial by jury to the fullest extent permitted by law in any claim or cause of action directly or indirectly based upon or arising out of the LLC Agreement.

***No shareholder approval is required for certain mergers.***

Our Board may undertake to approve mergers between us and certain other funds or vehicles. Subject to the requirements of the Investment Company Act, such mergers will not require shareholder approval so investors will not be given an opportunity to vote on these matters unless such mergers are reasonably anticipated to result in a material dilution of the NAV per share of the Fund. These mergers may involve funds managed by affiliates of the Adviser. The Board may also convert the form and/or jurisdiction of organization, including to take advantage of laws that are more favorable to maintaining board control in the face of dissident shareholders.

***We will be operating in a period of disruption, volatility and uncertainty in the capital markets and in the economy generally***.

The U.S. and global markets have, from time to time, experienced periods of disruption due to events such as terrorist attacks; acts of war; natural disasters, such as earthquakes, tsunamis, fires, floods or hurricanes;

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outbreaks of epidemic, pandemic or contagious diseases; and general financial crises. Such events have created, and continue to create, economic and political uncertainties and have contributed to recent global economic instability. Disruptions in the capital markets have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. The federal government and the Federal Reserve, as well as foreign governments and central banks, implemented significant fiscal and monetary policies in response to these disruptions, and additional government and regulatory responses may be possible. Future market disruptions and illiquidity could have an adverse effect on our business, financial condition, results of operations and cash flows.

Capital markets have been affected at times by a number of global macroeconomic events, including but not limited to the following: large sovereign debts and fiscal deficits of several countries in Europe and in emerging markets jurisdictions, levels of non-performing loans on the balance sheets of European banks, instability in the Chinese capital markets and the COVID-19 pandemic. There can be no assurance that these market conditions will not occur or worsen in the future. In particular, the current U.S. political environment and the resulting uncertainties regarding actual and potential shifts in U.S. foreign investment, trade, taxation, economic, environmental and other policies, as well as the impact of geopolitical tension, such as a deterioration in the bilateral relationship between the U.S. and China, concern as to whether China's stimulus measures will effectively stabilize its slowing economic growth, or the ongoing wars in the Middle East and Ukraine, could lead to disruption, instability and volatility in the global markets. Further, sanctions imposed by the U.S. and other countries in connection with hostilities between Russia and Ukraine, tensions between China and Taiwan, and other economic and geo-political forces have caused additional financial market volatility and affected the global economy.

Volatility and dislocation in the capital markets can also create a challenging environment in which to raise or access debt capital. Such conditions could make it difficult to extend the maturity of or refinance our existing indebtedness, if any, or obtain new indebtedness with similar or favorable terms and any failure to do so could have a material adverse effect on our business. Although generally decelerating, inflation remains above the U.S. Federal Reserve's target levels. Despite multiple federal fund rate decreases over the course of 2024, interest rates have remained elevated, with the U.S. Federal Reserve indicating in early 2025 an expectation of slower rate decreases moving forward.

U.S. debt ceiling and budget deficit concerns have increased the possibility of credit-rating downgrades and economic slowdowns or a recession in the United States. A decreased U.S. government credit rating, any default by the U.S. government on its obligations, or any prolonged U.S. government shutdown could create broader financial turmoil and uncertainty, which may weigh heavily on the financial performance of the companies in which the Fund may invest and on the Fund's future financial performance and the value of its Shares. Unfavorable economic conditions would be expected to increase the Fund's funding costs, limit the Fund's access to the capital markets or result in a decision by lenders not to extend credit to the Fund. These events may limit the Fund's investment originations, and limit the Fund's ability to grow and could have a material negative impact on the Fund's operating results, financial condition, results of operations and cash flows and the fair values of the Funds debt and equity investments. In addition, severe public health events, such as those caused by the COVID-19 pandemic, may occur from time to time, and could directly and indirectly impact the Fund and its portfolio companies in material respects that the Fund is unable to predict or control.

Furthermore, future terrorist activities, military or security operations, natural disasters, disease outbreaks, pandemics or other similar events could further weaken the domestic/global economies and create additional uncertainties, which may negatively impact our portfolio companies. During these periods of disruption, general economic conditions may deteriorate with material and adverse consequences for the broader financial and credit markets, and the availability of debt and equity capital for the market as a whole, and financial services firms in particular. In addition, the debt capital that will be available in the future, if any, may be at a higher cost and on less favorable terms and conditions. Such economic adversity could impair our portfolio companies' financial positions and operating results and affect the industries in which we invest, which could, in turn, harm our operating results. These conditions may reoccur for a prolonged period of time or materially worsen in the future.

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***Changes to U.S. tariff and import/export regulations may affect our portfolio companies, and may negatively impact our business, results of operations or financial conditions.***

The current U.S. administration has signified potential significant changes to U.S. trade policies, treaties and tariffs, creating uncertainty about the future relationship between the United States and other countries. These additional tax policy developments, or the perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets, and may significantly reduce global trade. Any of these factors could dampen economic activity and limit our portfolio companies' access to suppliers or customers, resulting in a material adverse effect on their business, financial condition and results of operations, which in turn would negatively impact us.

***Inflation and supply chain risks have had and may continue to have an adverse impact on our business, our results of operations and the financial condition of our portfolio companies.***

Globally, inflation and rapid fluctuations in inflation rates have in the past had negative effects on economies and financial markets, particularly in emerging economies and may do so in the future. Wages and prices of inputs increase during periods of inflation, which can negatively impact returns on our investments. In an attempt to stabilize inflation, governments may impose wage and price controls, or otherwise intervene in the economy. Governmental efforts to curb inflation often have negative effects on levels of economic activity.

***Economic and trade sanctions and anti-money laundering requirements could make it more difficult or costly for us to conduct our operations or achieve our business objectives.***

Economic and trade sanctions laws in the United States and other jurisdictions may prohibit us from transacting with or in certain countries and with certain individuals, companies and industry sectors. In the United States, the U.S. Department of the Treasury's Office of Foreign Assets Control ("OFAC"), is the primary regulator administering and enforcing laws, Executive Orders and regulations establishing U.S. sanctions. Such sanctions prohibit, among other things, transactions with, and the provision of services to, certain foreign countries, territories, entities and individuals. These entities and individuals include specially designated nationals, specially designated narcotics traffickers and other parties subject to OFAC sanctions and embargo programs. In addition, certain sanctions programs prohibit dealing with individuals or entities in certain countries, or certain securities and certain industry sectors regardless of whether relevant individuals or entities appear on the lists maintained by OFAC, which may make it more difficult for us to comply with applicable sanctions. These types of sanctions may significantly restrict or limit our investment activities in certain countries (in particular, certain emerging market countries). We may from time to time be subject to trade sanctions laws and regulations of other jurisdictions, which may be inconsistent with or even seek to prohibit compliance with certain sanctions programs administered by OFAC. The legal uncertainties arising from those conflicts may make it more difficult or costly for us to navigate investment activities that are subject to sanctions administered by OFAC or the laws and regulations of other jurisdictions. Some jurisdictions where the Fund or its portfolio companies do business from time to time have adopted or may adopt measures prohibiting compliance with certain U.S. sanctions programs, which may make compliance with all applicable sanctions impossible.

At the same time, the Fund may be obligated to comply with certain anti-boycott laws and regulations that prevent us from engaging in certain discriminatory practices that may be allowed or required in certain jurisdictions. the Fund's refusal to discriminate in this manner could make it more difficult for us to pursue certain investments and engage in certain business activities, and any compliance with such practices could subject us to fines, penalties, and adverse legal and reputational consequences.

In addition, in August 2024, FinCEN issued a final rule that requires certain investment advisers, including registered investment advisers, like the Adviser to, among other measures, adopt an anti-money laundering and countering the financing of terrorism ("AML/CFT") program and file certain reports, such as suspicious activity reports, with FinCEN and to maintain additional records related to such activities. The SEC has been delegated

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responsibility for examining investment advisers' compliance with these requirements. The rule, which is scheduled to go into effect in January 2026, will likely impose additional regulatory obligations related to AML/CFT on us. Further, FinCEN intends for the still-pending Customer Identification Program ("CIP") rule to also become effective on Jan. 1, 2026. Depending on the scope of the final CIP rule, this rule may also impose substantial regulatory obligations on us.

***Uncertainty about administration initiatives of the U.S. presidential administration could negatively impact our business, financial condition and results of operations.***

The current U.S. administration has expressed the intent to make significant changes to U.S. taxation, trade, healthcare, climate change, immigration, foreign and government regulatory policies. In this regard, there is significant uncertainty with respect to legislation, regulation and government policy at the federal level, as well as the state and local levels. Recent events have created a climate of heightened uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks with potentially far-reaching implications. There has been a corresponding meaningful increase in the uncertainty surrounding interest rates, inflation, foreign exchange rates, trade volumes and fiscal and monetary policy. To the extent the U.S. Congress or the current U.S. administration implements changes to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations, unemployment, immigration, federal income and other taxes, energy production, healthcare, the U.S. regulatory environment, inflation and other areas. Although we cannot predict the impact, if any, of these changes to our business, they could adversely affect our business, financial condition, operating results and cash flows. Until we know what policy changes are made and how those changes impact our business and the business of our competitors over the long term, we will not know if, overall, we will benefit from them or be negatively affected by them.

***Economic recessions or downturns could impair our portfolio companies and harm our operating results.***

Many of our portfolio companies will be susceptible to economic or industry centric slowdowns or recessions and may be unable to repay our debt investments during these periods. Therefore, our non-performing assets will likely increase and the value of our portfolio is likely to decrease during these periods. Adverse economic conditions may also decrease the value of any collateral securing investments in senior secured debt. Economic slowdowns or recessions may further decrease the value of our collateral and result in losses of value in our portfolio and a material decrease in our revenues, net income, assets and net worth. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by our lenders not to extend credit to us on terms we deem acceptable. These events could prevent us from increasing investments and materially harm our operating results.

A portfolio company's failure to satisfy financial or operating covenants imposed by us or other lenders could lead to defaults and, potentially, termination of its loans and foreclosure on its secured assets, which could trigger cross-defaults under other agreements and jeopardize such portfolio company's ability to meet its obligations under debt securities that we will hold. We may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting portfolio company. In addition, if one of our portfolio companies were to go bankrupt, even if we had structured our interest as senior debt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company, a bankruptcy court might re-characterize our debt holding and subordinate all or a portion of our claim to that of other creditors.

**Risks Related to Our Portfolio Company Investments** 

***Our investments in portfolio companies may be risky, and we could lose all or part of our investment.***

We intend to invest primarily in senior secured first lien loans, with minority exposure to second lien loans, subordinated or mezzanine loans, and equity and equity-like investments, such as equity and/or warrant kickers, in privately owned U.S. middle market companies.

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We typically lend directly to borrowers, and structure our investments to include fixed repayment schedules and extensive contractual rights and remedies. We do not expect to invest in structured products and investments and intend to focus on cash-pay instruments that pay interest on a monthly or quarterly basis, typically with maturities ranging from five to seven years. Any first lien senior secured loans typically do not include equity co-investments, warrants or payment-in-kind ("PIK") payment terms. However, to the extent we invest in securities ranking more junior in a borrower's capital structure, which we do not expect to be a focus of our portfolio, such investments may include some or all of these attributes. Any equity co-investments, warrants or PIK instruments we hold may involve certain risks that are not applicable to the types of securities in which we typically invest. These risks include the possibility of being unsecured with respect to our claim on such investments if the portfolio company were to go bankrupt or being paid less upon such bankruptcy than we otherwise would have had such investment been in the form of a senior loan.

Most loans in which we invest are not rated by any rating agency. If they were rated, they would be rated as below investment grade quality. Loans rated below investment grade quality, which are historically referred to as "junk" loans, are generally regarded as having predominantly speculative characteristics and may carry a greater risk with respect to a borrower's capacity to pay interest and repay principal. Therefore, our investments may result in an above average amount of risk and volatility or loss of principal. To the extent we make investments with a deferred interest feature such as market discount, debt instruments with PIK interest and original issue discount ("OID") securities, the higher interest rates on these investments may reflect the payment deferral and an increased credit risk associated with such instruments.

***Some assets carry more specific risks.***

***Unitranche Loans.*** We expect to make investments in unitranche loans to companies. These investments are a hybrid type of financing which combines traditional senior and subordinated debt into one senior secured asset using an interest rate somewhere between the senior and subordinated interest rates that would ordinarily exist. Such loans are typically made to middle market companies. Because unitranche loans have a greater loan-to-value ratio, there is potentially less over-collateralization available to cover the entire principal of the unitranche loans.

***Senior Secured Loans.*** When we make a senior secured loan to a portfolio company, we generally will take a security interest in the available assets of the portfolio company, including the equity interests of its subsidiaries, which should help mitigate the risk that the we will not be repaid. However, there is a risk that the collateral securing our loans may decrease in value over time, may be difficult to sell in a timely manner, may be difficult to appraise, and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital. In some circumstances, our lien could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company's financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan's terms, or at all, or that we will be able to collect on the loan should it be forced to enforce its remedies.

***Stretch Senior Loans.*** We also expect to make investments in stretch senior loans of companies. Stretch senior loans are senior loans that have a greater loan-to-value ratio than traditional senior loans and typically carry a higher interest rate to compensate for the additional risk. Because stretch senior loans have a greater loan-to-value ratio, there is potentially less over-collateralization available to cover the entire principal of the stretch senior loan.

***Covenant-Lite Loans.*** Some of the our investments may lack maintenance financial covenants in the related loan documentation ("Covenant-Lite Loans"). An investment in a Covenant-Lite Loan may potentially hinder the ability to re-price credit risk associated with a portfolio company's performance and reduce the creditors' ability to restructure a non-performing loan and mitigate potential loss. As a result, our exposure to losses may be

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increased, which could result in an adverse impact on our return. In addition, the lack of such financial covenants may make it more difficult to trigger a default in respect of such loans.

***Non-U.S. Investments.*** We may invest a portion of our assets in portfolio companies that are organized, headquartered or have substantial sales or operations outside of the United States, its territories, and possessions. Such investments may be subject to certain additional risk due to, among other things, potentially unsettled points of applicable governing law, the risks associated with fluctuating currency exchange rates, capital repatriation regulations (as such regulations may be given effect during the term of the Fund), and the application of complex U.S. and non-U.S. tax rules to cross-border investments, possible imposition of non-U.S. taxes on the Fund.

***Second-Lien and Mezzanine Debt*.** Our investments in second-lien and mezzanine debt generally will be subordinated to senior loans and will either have junior security interests or be unsecured. As such, other creditors may rank senior to us in the event of insolvency. This may result in greater risk and loss of principal.

***Equity and Other Investments.*** When we invest in first-lien debt, second-lien debt or mezzanine debt, we may acquire equity securities, such as warrants, options and convertible instruments. In addition, we may invest directly in the equity securities of portfolio companies. We intend to dispose of these equity interests and realize gains upon our disposition of these interests. However, the equity interests we receive may not appreciate in value and, in fact, may decline in value. Accordingly, we may not be able to realize gains from our equity interests, and any gains that we do realize on the disposition of any equity interests may not be sufficient to offset any other losses we experience.

***A covenant breach by a portfolio company may harm our operating results.***

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

***An investment strategy focused primarily on privately held middle market companies presents certain challenges, including, but not limited to, the lack of available information about these companies.***

We intend to invest primarily in privately owned U.S. companies. Investments in privately owned companies pose certain incremental risks as compared to investments in public companies. For example, such private companies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• have reduced access to the capital markets, resulting in diminished capital resources and ability to withstand
financial distress;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• may have limited financial resources and may be unable to meet their obligations under the debt securities that
we hold, which may be accompanied by a deterioration in the value of any collateral and a reduction in the likelihood of us realizing on any guarantees we may have obtained in connection with our investment;

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

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

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

Finally, little public information generally exists about privately owned companies and these companies may not have third-party debt ratings or audited financial statements. We must therefore rely on the ability of our Adviser to obtain adequate information through due diligence to evaluate the creditworthiness and potential returns from investing in these companies. Additionally, these companies and their financial information are not generally subject to the Sarbanes-Oxley Act and other rules that govern public companies. If we are unable to uncover all material information about these companies, we may not make a fully informed investment decision, and we may lose money on our investments.

***The value of most of our portfolio securities will not have a readily available market price and we will value these securities at fair value as determined in good faith by our Valuation Designee, which valuation is inherently subjective, may not reflect what we may actually realize for the sale of the investment and could result in a conflict of interest with the Adviser.***

Investments will be valued at the end of each fiscal quarter. Substantially all of our investments are expected to be in loans that do not have readily ascertainable market prices. The fair market value of investments that are not publicly traded or whose market prices are not readily available will be determined in good faith by the Adviser, as Valuation Designee (subject to the oversight of the audit committee of our Board). The Valuation Designee intends to retain independent third-party valuation firms to perform certain limited third-party valuation services. In connection with that determination, investment professionals from the Adviser will prepare portfolio company valuations using sources and/or proprietary models depending on the availability of information on our investments and the type of asset being valued, all in accordance with the valuation policies and procedures of the Fund and the Adviser. The participation of the Adviser as Valuation Designee in our valuation process could result in a conflict of interest, since the Management Fee is based in part on the value of our net assets.

Factors that the Valuation Designee may consider in determining the fair value of our investments include the nature and realizable value of any collateral, the portfolio company's earnings and its ability to make payments on its indebtedness, the markets in which the portfolio company does business, comparison to similar publicly traded companies, discounted cash flow and other relevant factors. Because fair valuations, and particularly fair valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based to a large extent on estimates, comparisons and qualitative evaluations of private information, our determinations of fair value may differ materially from the values that would have been determined if a ready market for these securities existed. This could make it more difficult for investors to value accurately our portfolio investments and could lead to undervaluation or overvaluation of our Shares. In addition, the valuation of these types of securities may result in substantial write-downs and earnings volatility.

Decreases in the market values or fair values of our investments are recorded as unrealized losses. The effect of all of these factors on our portfolio can reduce our net asset value by increasing net unrealized losses in our portfolio. Depending on market conditions, we could incur substantial realized losses and may suffer unrealized losses, which could have a material adverse impact on our business, financial condition and results of operations.

***Our portfolio securities may be thinly traded and, as a result, the lack of liquidity in our investments may adversely affect our business.***

Investments in privately owned companies tend to be less liquid. The securities of privately owned companies are not publicly traded or actively traded on the secondary market and are, instead, traded on a privately negotiated over-the-counter secondary market for institutional investors. These privately negotiated over-the-counter secondary markets may be inactive during an economic downturn or a credit crisis. In addition,

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the securities in these companies are subject to legal and other restrictions on resale or are otherwise less liquid than publicly traded securities. Also, if there is no readily available market for these investments, we will carry these investments at fair value as determined by our Valuation Designee. As a result, if we are required to liquidate all or a portion of our portfolio quickly, we may realize significantly less than the value at which we had previously recorded these investments. We may also face other restrictions on our ability to liquidate an investment in a portfolio company to the extent that we, our Adviser or any of respective affiliates have material nonpublic information regarding such portfolio company or where the sale would be an impermissible joint transaction. The reduced liquidity of our investments may make it difficult for us to dispose of them at a favorable price, and, as a result, we may suffer losses.

***Our portfolio may be invested in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry.***

Although we do not intend to focus our investments in any specific industries, our portfolio may be invested in a limited number of portfolio companies and industries. Beyond the asset diversification requirements associated with our qualification as a RIC under Subchapter M of the Code, we will not have fixed guidelines for diversification; while we do not intend to target any specific industries, our investments may be limited to relatively few industries. As a result, the aggregate returns we realize may be significantly adversely affected if a small number of investments perform poorly or if we need to write down the value of any one investment. Additionally, a downturn in any particular industry in which we are invested could also significantly impact the aggregate returns we realize.

***Loan originations may expose us to risk not present in other types of loans.***

We intend to make loans to companies. In making loans, we will compete with a broad spectrum of lenders, some of which may have greater financial resources than we do, and some of which may be willing to lend money on better terms (from a borrower's standpoint) than we can. Increased competition for, or a diminution in the available supply of, qualifying loans may result in lower yields on such loans, which could reduce returns to us. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies, particularly companies experiencing significant business and financial difficulties is unusually high. There is no assurance we will correctly evaluate the value of the assets collateralizing these loans or the prospects for successful repayment or a successful reorganization or similar action.

In addition, loan origination involves a number of particular risks that may not exist in the case of secondary debt purchases, including (i) when originating loans, the Adviser will generally have to rely more on its own resources to conduct due diligence of the borrower, which will likely be more limited than the diligence conducted for a broadly syndicated transaction involving an underwriter, and (ii) the borrowers may in some circumstances be higher credit risks who could not obtain debt financing in the syndicated markets.

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

We are subject to the risk that the investments we make in our portfolio companies may be repaid prior to maturity. If this occurs, we will generally reinvest these proceeds in temporary investments, pending their future investment in new portfolio companies. These temporary investments may have substantially lower yields than the debt being prepaid, and we could experience significant delays in reinvesting these amounts. Alternative future investments in new portfolio companies may also be at lower yields than the debt that was repaid and will, in any case, require additional Adviser time. As a result, our results of operations could be materially adversely affected if one or more of our portfolio companies elect to prepay amounts owed to us. Additionally, prepayments, net of prepayment fees, could negatively impact our return on equity.

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***Some of our portfolio investments may present refinancing risks.***

A significant portion of the Fund's portfolio investments are expected to consist of loans for which most or all of the principal is due at maturity. The ability of the company to make such a large payment upon maturity typically depends upon its ability to refinance the loan prior to maturity. The ability of a company to consummate a refinancing will be affected by many factors, including the availability of financing at acceptable rates to such company, the financial condition of such company, the marketability of the collateral (if any) securing such loan, the operating history of the company and related businesses, tax laws and prevailing general economic conditions.

Significant numbers of companies are expected to need to refinance their debt over the next few years, and significant numbers of CLO transactions (historically an important source of funding for loans) have reached or are close to reaching the end of their reinvestment periods or the final maturities of their own debt. As a result, there could be significant pressure on the ability of companies to refinance their debt over the next few years unless a significant volume of new CLO transactions or other sources of funding develop. If such sources of funding do not develop, significant defaults in the Fund's portfolio investments could occur, and there could be downward pressure on the prices and markets for debt instruments, including assets held by the Fund.

***We may securitize certain of our investments, which may subject us to certain structured financing risks.***

We may securitize certain of our investments in the future, including through the formation of one or more collateralized loan obligations, or CLOs, while retaining all or most of the exposure to the performance of these investments. This would involve contributing a pool of assets to a special purpose entity, and selling debt interests in that entity on a non-recourse or limited-recourse basis to purchasers.

If we were to create a CLO or other securitization vehicle, we would depend on distributions from the vehicle to pay distributions to our shareholders. The ability of a CLO or other securitization vehicle to make distributions will be subject to various limitations, including the terms and covenants of the debt it issues. For example, tests (based on interest coverage or other financial ratios or other criteria) may restrict our ability, as holder of a CLO or other securitization vehicle equity interest, to receive cash flow from these investments. We cannot assure investors that any such performance tests would be satisfied. Also, a CLO or other securitization vehicle may take actions that delay distributions to preserve ratings and to keep the cost of present and future financings lower or the financing vehicle may be obligated to retain cash or other assets to satisfy over-collateralization requirements commonly provided for holders of its debt. As a result, there may be a lag, which could be significant, between the repayment or other realization on a loan or other assets in, and the distribution of cash out of, a CLO or other securitization vehicle, or cash flow may be completely restricted for the life of the CLO or other securitization vehicle.

In addition, a decline in the credit quality of loans in a CLO or other securitization vehicle due to poor operating results of the relevant borrower, declines in the value of loan collateral or increases in defaults, among other things, may force the sale of certain assets at a loss, reducing their earnings and, in turn, cash potentially available for distribution to us for distribution to our shareholders. If we were to form a CLO or other securitization vehicle, to the extent that any losses were incurred by the financing vehicle in respect of any collateral, these losses would be borne first by us as owners of its equity interests. Any equity interests that we were to retain in a CLO or other securitization vehicle would not be secured by its assets and we would rank behind all of its creditors.

A CLO or other securitization vehicle, if created, also would likely be consolidated in our financial statements and consequently affect our asset coverage ratio, which may limit our ability to incur additional leverage. See "*Item 1. Business—Regulation as a Business Development Company."*

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***We generally will not control the business operations of our portfolio companies and management of our portfolio companies could make decisions adverse to our interests as debt investors.***

We do not expect to control any of our portfolio companies, even though it is possible that we could have board representation or board observation rights. As a result, we will be subject to the risk that a portfolio company in which we invest may make business decisions with which we disagree, and the management of such company, as representatives of the holders of their common equity, may take risks or otherwise act in ways that do not serve our interests as debt investors. As a result, a portfolio company may make decisions that could decrease the value of our portfolio holdings.

***We may not be able to realize expected returns on our invested capital.***

We may not realize expected returns on our investment in a portfolio company due to changes in the portfolio company's financial position or due to an acquisition of the portfolio company. If a portfolio company repays our loans prior to their maturity, we may not receive our expected returns on our invested capital. Many of our investments are structured to provide a disincentive for the borrower to pre-pay or call the security, but this call protection may not cover the full expected value of an investment if that investment is repaid prior to maturity.

Middle market companies operate in a highly acquisitive market with frequent mergers and buyouts. If a portfolio company is acquired or merged with another company prior to drawing on our commitment, we would not realize our expected return. Similarly, in many cases companies will seek to restructure or repay their debt investments or buy our other equity ownership positions as part of an acquisition or merger transaction, which may result in a repayment of debt or other reduction of our investment.

***Our portfolio companies may incur debt that ranks equally with, or senior to, our investments in such companies.***

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

***We may be exposed to special risks associated with bankruptcy cases.***

We may hold the debt securities of leveraged companies that may, due to the significant volatility of such companies, enter into bankruptcy proceedings. Leveraged companies may experience bankruptcy or similar financial distress. If one of our portfolio companies were to go bankrupt, depending on the facts and circumstances, including the extent to which we actually provided managerial assistance to that portfolio company or a representative of us or our Adviser sat on the board of directors of such portfolio company, a bankruptcy court might re-characterize our debt investment and subordinate all or a portion of our claim to that of other creditors. For example, lenders in certain cases can be subject to lender liability claims for actions taken by them when they become too involved in the borrower's business or exercise control over a borrower. It is possible that we could become subject to a lender's liability claim, including as a result of actions taken if we render significant managerial assistance to, or exercise control or influence over the board of directors of, the borrower.

Bankruptcy courts weigh equitable considerations when determining the recovery creditors may receive. As a result, it is difficult to predict with any certainty the situations in which our legal rights may be subordinated to

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other creditors in a bankruptcy. Many of the events within a bankruptcy case are adversarial and often beyond the control of the creditors. While creditors generally are afforded an opportunity to object to significant actions, we cannot assure investors that a bankruptcy court would not approve actions that may be contrary to our interests. For example, in situations where a bankruptcy carries a higher degree of political or broader economic significance, our recovery may be adversely affected.

The reorganization of a company can involve substantial legal, professional and administrative costs to a lender and the borrower. The administrative costs of a bankruptcy proceeding are frequently high and would be paid out of the debtor's estate prior to any return to creditors. The duration of a bankruptcy proceeding is also difficult to predict, and a creditor's return on investment can be adversely affected by delays until the plan of reorganization or liquidation ultimately becomes effective. During the process, a company's competitive position may erode, key management may depart and a company may not be able to invest adequately. In some cases, the debtor company may not be able to reorganize and may be required to liquidate assets. The debt of companies in financial reorganization will, in most cases, not pay current interest, may not accrue interest during reorganization and may be adversely affected by an erosion of the issuer's fundamental value. Further, a bankruptcy filing by an issuer may adversely and permanently affect the issuer. If such bankruptcy proceeding is converted to a liquidation, our value may not equal the liquidation value that was believed to exist at the time of your investment.

Because the standards for classification of claims under bankruptcy law are vague, our influence with respect to the class of securities or other obligations we own may be lost by increases in the number and amount of claims in the same class or by different classification and treatment. In the early stages of the bankruptcy process, it is often difficult to estimate the extent of, or even to identify, contingent claims that might be made. In addition, certain claims that have priority by law (for example, claims for taxes) may be substantial and may impair the recovery of other creditors.

Because the effectiveness of the judicial systems in the countries in which the Fund may invest varies, the Fund (or any portfolio company) may have difficulty in foreclosing or successfully pursuing claims in the courts of such countries, as compared to the United States or other countries. Further, to the extent the Fund may obtain a judgment but is required to seek its enforcement in the courts of one of these countries in which the Fund invests, there can be no assurance that such courts will enforce such judgment. The laws of other countries often lack the sophistication and consistency found in the United States with respect to foreclosure, bankruptcy, corporate reorganization or creditors' rights.

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

After our initial investment in a portfolio company, we may be called upon from time to time to provide additional funds to such company or have the opportunity to increase our investment through the exercise of a warrant or other right to purchase shares. There is no assurance that we will make, or will have sufficient funds to make, follow-on investments. Even if we have sufficient capital to make a desired follow-on investment, we may elect not to make a follow-on investment because we may not want to increase our level of risk, we prefer other opportunities, we are limited in our ability to do so by compliance with BDC requirements, or we desire to maintain our RIC tax status. Our ability to make follow-on investments may also be limited by our Adviser's allocation policy. Any decisions not to make a follow-on investment or any inability on our part to make such an investment may have a negative impact on a portfolio company in need of such an investment, may result in a missed opportunity for us to increase our participation in a successful operation or may reduce the expected return on the investment.

***Any acquisitions or strategic investments that we pursue are subject to risks and uncertainties.***

We intend to pursue growth through acquisitions or strategic investments in new businesses. Completion and timing of any such acquisitions or strategic investments may be subject to a number of contingencies, including

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the uncertainty in reaching a commercial agreement with our counterparty, our ability to obtain required board, shareholder and regulatory approvals, as well as any required financing (or the risk that these are obtained subject to terms and conditions that are not anticipated). The announcement or consummation of any transaction also may adversely impact our business relationships or engender competitive responses.

Acquisitions could involve numerous additional risks, such as unanticipated litigation, unexpected costs, liabilities, charges or expenses resulting from a transaction, the inability to generate sufficient revenue to offset acquisition costs and any changes in general economic or industry specific conditions. There can be no assurance that the integration of an acquired business will be successful or that an acquired business will prove to be profitable or sustainable. The failure to integrate successfully or to manage the challenges presented by an integration process may adversely impact our financial results. In addition, the proposal and negotiation of acquisitions or strategic investments, whether or not completed, as well as the integration of those businesses into our existing portfolio, could result in substantial expenses and the diversion of our Adviser's time, attention and resources from our day-to-day operations.

Our ability to manage our growth through acquisitions or strategic investments will depend, in part, on our success in addressing these risks. Any failure to effectively implement our acquisition or strategic investment strategies could have a material adverse effect on our business, financial condition or results of operations.

***We cannot guarantee that we will be able to obtain various required licenses in U.S. states or in any other jurisdiction where they may be required in the future.***

We are required to have and may be required in the future to obtain various state licenses to, among other things, originate commercial loans, and may be required to obtain similar licenses from other authorities, including outside of the United States, in the future in connection with one or more investments. Applying for and obtaining required licenses can be costly and take several months. We cannot assure investors that we will maintain or obtain all of the licenses that we need on a timely basis. We also are and will be subject to various information and other requirements to maintain and obtain these licenses, and we cannot assure investors that we will satisfy those requirements. Our failure to maintain or obtain licenses that we require, now or in the future, might restrict investment options and have other adverse consequences.

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

Our investment strategy may include potential investments in foreign companies. Investing in foreign companies may expose us to additional risks not typically associated with investing in U.S. companies. These risks include changes in exchange control regulations, U.S. trade policy, political and social instability, expropriation, imposition of foreign taxes (potentially at confiscatory levels), less liquid markets, less available information than is generally the case in the United States, higher transaction costs, less government supervision of exchanges, brokers and issuers, less developed bankruptcy laws, difficulty in enforcing contractual obligations, lack of uniform accounting and auditing standards and greater price volatility. Uncertainty in the wake of Brexit as well as Russia's invasion of Ukraine, among other current events, could also have negative impacts on the economies of countries in Europe and elsewhere. The military conflict between Russian and Ukraine is ongoing, and its ultimate effects on the U.S. and global economy, as well as our potential portfolio companies, remains uncertain. In addition, interest income derived from loans to foreign companies is not eligible to be distributed to our non-U.S. shareholders free from withholding taxes.

Although most of our investments will be U.S. dollar-denominated, our investments that are denominated in a foreign currency will be subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital gains and political developments. We may employ hedging techniques to minimize these risks, but we cannot assure investors that such strategies will be effective or without risk to us.

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***We expose ourselves to risks when we engage in hedging transactions.***

We may enter into hedging transactions, which may expose us to risks associated with such transactions. We may seek to utilize instruments such as forward contracts, currency options and interest rate swaps, caps, collars and floors to seek to hedge against fluctuations in the relative values of our portfolio positions from changes in currency exchange rates and market interest rates and the relative value of certain debt securities from changes in market interest rates. Use of these hedging instruments may include counterparty credit risk. To the extent we have non-U.S. investments, particularly investments denominated in non-U.S. currencies, our hedging costs will increase.

Hedging against a decline in the values of our portfolio positions would not eliminate the possibility of fluctuations in the values of such positions or prevent losses if the values of such positions were to decline. However, such hedging can establish other positions designed to gain from those same developments, thereby offsetting the decline in the value of such portfolio positions. Such hedging transactions may also limit the opportunity for gain if the values of the underlying portfolio positions were to increase. It also may not be possible to hedge against an exchange rate or interest rate fluctuation that is so generally anticipated that we are not able to enter into a hedging transaction at an acceptable price.

The success of our hedging strategy will depend on our ability to correctly identify appropriate exposures for hedging, such as currency exchange rate risk and interest rate risk related to specific portfolio companies. We may enter into fixed-to-floating interest rate swaps to continue to align the interest rates of our liabilities with our investment portfolio, which we expect to consist of predominately floating rate loans. However, unanticipated changes in currency exchange rates or other exposures that we might hedge may result in poorer overall investment performance than if we had not engaged in any such hedging transactions. In addition, the degree of correlation between price movements of the instruments used in a hedging strategy and price movements in the portfolio positions being hedged may vary, as may the time period in which the hedge is effective relative to the time period of the related exposure.

For a variety of reasons, we may not seek to (or be able to) establish a perfect correlation between such hedging instruments and the positions being hedged. Any such imperfect correlation may prevent us from achieving the intended hedge and expose us to risk of loss. In addition, it may not be possible to hedge fully or perfectly against currency fluctuations affecting the value of securities denominated in non-U.S. currencies because the value of those securities is likely to fluctuate as a result of factors not related to currency fluctuations. Income derived from hedging transactions also is not eligible to be distributed to non-U.S. Shareholders free from withholding taxes. Changes to the regulations applicable to the financial instruments we use to accomplish our hedging strategy could affect the effectiveness of that strategy.

Finally, Rule 18f-4 under the Investment Company Act constrains our ability to use swaps and other derivatives. The Fund intends to qualify as a "limited derivatives user" under the rule, which will require the Fund to limit its derivatives exposure to 10% of its net assets at any time, excluding certain currency and interest rate hedging transactions. If the Fund does not qualify as a limited derivatives user, the rule will impose certain requirements on the Fund, including forcing us to reduce our use of derivatives if the value-at-risk of our investment portfolio, including our swap or derivative positions, exceeds 200 percent of a "designated reference portfolio," which is a designated index that is unleveraged and reflects the market or asset classes in which we invest or our securities portfolio. If we could not identify a suitable reference portfolio, our value-at-risk would not be permitted to exceed 20% of our net assets. In addition, we would be required under the rule to establish a risk management program for our use of swaps or other derivative positions. Based on our anticipated use of derivatives primarily for interest rate hedging purposes, we expect to qualify as a limited derivatives user under the rule. However, we cannot assure investors that we will be treated as a limited derivatives user or that our approach to our use of derivatives will not change.

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***The market structure applicable to derivatives imposed by the Dodd-Frank Act may affect our ability to use over-the-counter ("OTC") derivatives for hedging purposes.***

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") enacted, and the Commodity Futures Trading Commission, or CFTC, and SEC have issued rules to implement, both broad regulatory requirements and broad structural requirements applicable to OTC derivatives (swaps and security-based swaps) markets, participants in these markets and, to a lesser extent, listed commodity futures (and futures options) markets. Similar changes are in the process of being implemented in other major financial markets.

These regulatory changes include, but are not limited to, requirements that certain types of OTC derivatives (currently limited to specified interest rate swaps and index credit default swaps), including those that we may use for hedging activities such as interest rate and credit default swaps, be cleared and traded on regulated platforms. The CFTC continues to approve contracts for central clearing. Exchange trading and central clearing are expected to reduce counterparty credit risk by substituting the clearinghouse as the counterparty to a swap and increase liquidity, but exchange trading and central clearing do not make swap transactions risk free. Our cleared OTC derivatives are expected to be subject to margin requirements established by regulated clearinghouses, including daily exchanges of cash variation (or mark-to-market) margin and an upfront posting of cash or securities initial margin to cover the clearinghouse's potential future exposure to the default of a party to a particular OTC derivatives transaction. U.S. regulators have also adopted rules imposing margin requirements for OTC derivatives executed with registered swap dealers or security-based swap dealers that are not cleared, with uncleared swaps, such as nondeliverable foreign currency forwards, subject to certain margin requirements that mandate the posting and collection of minimum margin amounts. This requirement may result in the portfolio and its counterparties posting higher margin amounts for uncleared swaps than would otherwise be the case. The margin requirements for cleared and uncleared OTC derivatives may require that our Adviser, in order to maintain its relief from the CFTC's commodity pool operator ("CPO") registration requirements, limit our ability to enter into hedging transactions or to obtain synthetic investment exposures, in either case adversely affecting our ability to mitigate risk. Furthermore, any failure by us to fulfill any collateral requirement (e.g., a so-called "margin call") may result in a default and could have a material adverse impact on our business, financial condition and results of operations.

The Dodd-Frank Act and the rules adopted by the CFTC and SEC thereunder also imposed requirements relating to real-time public and regulatory reporting of OTC derivative transactions, enhanced documentation requirements, position limits on an expanded array of derivatives, and recordkeeping requirements. Reporting of swap data may result in greater market transparency, but may subject a portfolio to additional administrative burdens, and the safeguards established to protect trader anonymity may not function as expected. While these changes are intended to mitigate systemic risk and to enhance transparency and execution quality in the OTC derivative markets, the impact of these changes is not known at this time. Taken as a whole, these changes could significantly increase the cost of using uncleared OTC derivatives to hedge risks, including interest rate and foreign exchange risk; reduce the level of exposure we are able to obtain for risk management purposes through OTC derivatives (including as the result of the CFTC imposing position limits on additional products); reduce the amounts available to us to make non-derivatives investments; impair liquidity in certain OTC derivatives; and adversely affect the quality of execution pricing obtained by us, all of which could adversely impact our investment returns.

Lastly, future CFTC or SEC rulemakings to implement the Dodd-Frank Act requirements could potentially limit or completely restrict our ability to use certain instruments as a part of our investment strategy, increase the costs of using these instruments or make them less effective. The SEC has also indicated that it may adopt new policies on the use of derivatives by registered investment companies. Such policies could affect the nature and extent of our use of derivatives.

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***European Market Infrastructure Regulation***

Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (as amended, including by Regulation (EU) 2019/834 of the European Parliament and of the Council of 20 May 2019) ("EMIR") introduced certain requirements in respect of derivative contracts with the result that the Fund will, if entering into derivative transactions with UK or EU based bank counterparties, bear additional obligations and/or costs that may be significant and that would not otherwise have applied when entering into derivative transactions with UK or EU based bank counterparties. EMIR applies throughout the EEA and has been retained and transposed into UK law by virtue of the European Union Withdrawal Act ("EUWA").

Broadly, EMIR's requirements in respect of derivative contracts are: (i) mandatory clearing of OTC derivative contracts declared subject to the clearing obligation; (ii) risk mitigation techniques in respect of uncleared OTC derivative contracts; and (iii) reporting and record-keeping requirements in respect of all derivative contracts. The application of these requirements is dependent on the classification of the counterparties as financial counterparties ("FCs") or non-financial counterparties ("NFCs"). Financial counterparties and non-financial counterparties are further divided into those which have entered into derivatives having a notional value above certain specified thresholds ("FC+" or "NFC+") and those which do not ("FC-" and "NFC-"). All financial counterparties are subject to certain risk mitigation techniques, including the margining requirements.

The Fund and the Adviser will be categorized as FCs under EMIR and the UK version of EMIR – which means that they are subject to the clearing obligation (if above the clearing threshold) and the other risk mitigation techniques for non-centrally cleared derivatives, including margining.

Non-financial counterparties are also subject to risk mitigation techniques, but are only subject to the margining requirements once exceeding one of the specified thresholds. Under EMIR, a special purpose vehicle established by the Fund (or by the Adviser, acting on the Fund's behalf) for the purposes of entering into derivative transactions is likely to be considered a NFC unless its trading volume exceeds certain specified thresholds.

Prospective investors should be aware that the regulatory changes arising from EMIR and other European/UK market reforms may raise the costs of entering into derivative contracts and may adversely affect the Fund's ability to engage in transactions in derivatives including hedging transactions.

***If we cease to be eligible for an exemption from regulation as a commodity pool operator, our compliance expenses could increase substantially.***

Our Adviser has filed with the National Futures Association ("NFA") a notice of exclusion from registration with the CFTC as a CPO pursuant to CFTC Rule 4.5. CFTC Rule 4.5 will relieve our Adviser from registering with the CFTC as our CPO, so long as we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• continue to be regulated by the SEC as a BDC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• confine our trading in CFTC-regulated derivatives within specified thresholds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• are not marketed to the public as a commodity pool or as a vehicle for trading in CFTC-regulated derivatives.

If we were unable to satisfy the conditions of CFTC Rule 4.5 in the future, our Adviser may be subject to registration with the CFTC as a CPO, unless it can rely on a different exclusion, exemption or no-action relief. Registered CPOs must comply with numerous substantive regulations related to disclosure, reporting and recordkeeping, and are required to become members of the NFA, and be subject to the NFA's rules and bylaws. Compliance with these additional registration and regulatory requirements could increase our expenses and impact performance. 

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***Restricted Nature of Investment Positions***

Generally, there will be no readily available market for a substantial number of the Fund's investments, so most of the Fund's investments will be difficult to value. Although the Fund does not expect to do so, certain investments may be distributed in kind to the Members and it may be difficult to liquidate the investments received at a price or within a time period that is determined to be ideal by such Members. After a distribution of investments is made to the Members, many Members may decide to liquidate such investments within a short period of time, which could have an adverse impact on the price of such investments. The price at which such investments may be sold by such Members may be lower than the value of such investments determined pursuant to the Board's valuation policy.

**Risks Related to Our Securities** 

***We may not be able to pay you distributions, and our distributions may not grow over time.***

Subject to the discretion of our Board and applicable legal restrictions, we intend to make distributions to our shareholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or to increase our cash distributions in the future. All distributions will be paid at the discretion of our Board and will depend on our earnings, our net investment income, our financial condition, maintenance of our RIC tax status, compliance with applicable BDC regulations and such other factors as our Board may deem relevant from time to time.

***We may need to raise additional capital to grow because we must distribute most of our income.***

We may need additional capital to fund growth in our investments. A reduction in the availability of new capital could limit our ability to grow. We must distribute dividends each taxable year of an amount generally at least equal to 90% of our investment company taxable income (as that term is defined in the Code, but determined without regard to any deduction for dividends paid), to our shareholders to maintain our ability to be treated as taxable as a RIC. As a result, any such cash earnings may not be available to fund investment originations. We expect to issue equity securities in private offerings. If we fail to obtain funds from such sources or from other sources to fund our investments, it could limit our ability to grow, which may have an adverse effect on the value of our securities. In addition, our ability to borrow or issue additional preferred stock may be restricted if our total assets are less than the required asset coverage ratio under the Investment Company Act, currently 200% (or 150% upon receipt of certain approvals and subject to certain disclosure requirements) of total borrowings and preferred stock.

***A significant portion of our investment portfolio is recorded at fair value as determined in good faith by our Valuation Designee and, as a result, there is uncertainty as to the value of our portfolio investments.***

We carry our portfolio investments at market value or, if there is no readily available market value, at fair value. There is no public market or active secondary market for many of the securities of the privately held companies in which we have invested. The majority of our investments are not publicly traded or actively traded on a secondary market but, instead, may be traded on a privately negotiated over-the-counter secondary market for institutional investors. As a result, these securities are valued monthly or quarterly, as applicable, at fair value as determined in good faith by our Valuation Designee (subject to the oversight of our Board's audit committee).

The determination of fair value, and thus the amount of unrealized losses we may incur in any year, is to a degree subjective. We value these securities monthly or quarterly, as applicable, at fair value as determined in good faith by our Valuation Designee (subject to the oversight of our Board's audit committee). The types of factors that may be considered in determining the fair values of our investments include the nature and realizable value of any collateral, the portfolio company's ability to make payments on its indebtedness and its earnings, the markets in which the portfolio company does business, comparison to publicly traded companies, discounted cash flow, current market interest rates and other relevant factors. Because such valuations, and particularly valuations of

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private securities and private companies, are inherently uncertain, they may fluctuate significantly over short periods of time due to changes in market conditions. The determinations of fair value in good faith by our Valuation Designee (subject to our Board oversight) may differ materially from the values that would have been used if an active market and market quotations existed for these investments. Our net asset value could be adversely affected if the determinations regarding the fair value of our investments were materially higher than the values that we ultimately realize upon the disposal of such investments.

***Our distribution proceeds may exceed our earnings, particularly during the period before we have substantially invested the net proceeds from any offering of the Shares. We have not established any limit on the extent to which we may use proceeds from any offering of the Shares to fund distributions, which may reduce the amount of capital we ultimately invest in assets.***

We expect to pay distributions out of assets legally available for distribution. In the event that we encounter delays in locating suitable investment opportunities, we may pay our distributions from the proceeds of any offering of the Shares in anticipation of future cash flow, which may constitute a return of your capital. Distributions from the proceeds of any offering of the Shares also could reduce the amount of capital we ultimately invest in portfolio companies. Accordingly, shareholders who receive the payment of a distribution from us should not assume that such distribution is the result of a net profit earned by us.

***Our distributions to Shareholders may be funded from expense reimbursements or waivers of investment advisory fees, some of which are subject to repayment pursuant to our Expense Support and Conditional Reimbursement Agreement.***

Substantial portions of our distributions may be funded through the reimbursement of certain expenses by our Adviser and its affiliates, including through the waiver of certain investment advisory fees by our Adviser. Any such distributions funded through expense reimbursements or waivers of advisory fees will not be based on our investment performance, and can only be sustained if we achieve positive investment performance in future periods and/or our Adviser and its affiliates continue to make such reimbursements or waivers of such fees. Our future repayments of amounts reimbursed or waived by our Adviser or its affiliates will reduce the distributions that shareholders would otherwise receive in the future. There can be no assurance that we will achieve the performance necessary to be able to pay distributions at a specific rate or at all. Our Adviser and its affiliates have no obligation to waive advisory fees or otherwise reimburse expenses in future periods, except as otherwise disclosed under the terms of this offering. As of the date of this registration statement, the Adviser has paid on our behalf expenses in an amount totaling approximately $2,900,000 with an additional $1,500,000 in accrued expenses. There can be no assurance that the Adviser will be reimbursed for such amount or future amounts paid, and the Adviser will only be reimbursed in accordance with the terms of the Expense Support Agreement.

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

As a BDC, we will be required to carry our investments at the fair value as determined in good faith pursuant to procedures adopted by, and under the oversight of, our Board. Decreases in the fair value of our investments relative to amortized cost will be recorded as unrealized depreciation. Any unrealized losses in our portfolio could be an indication of a portfolio company's inability to meet its repayment obligations to us with respect to the affected loans. This could result in realized losses in the future and ultimately in reductions of our income available for distribution in future periods. In addition, decreases in the fair value of our investments will reduce our NAV.

***Our Preferred Shares could adversely affect the value of our Shares.***

The issuance of Preferred Shares if any, with distribution or conversion rights, liquidation preferences or other economic terms favorable to the holders of Preferred Shares could adversely affect our Common Shares by

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making an investment in the Common Shares less attractive. In addition, the distributions on any Preferred Shares we issue must be cumulative. Payment of distributions and repayment of the liquidation preference of Preferred Shares must take preference over any distributions or other payments to our Common Shareholders, and holders of Preferred Shares will not be subject to any of our expenses or losses and are not entitled to participate in any income or appreciation in excess of their stated preference (other than convertible Preferred Shares that converts into Common Shares). In addition, under the Investment Company Act, any such Preferred Shares would constitute a "senior security" for purposes of the 150% asset coverage test.

***Holders of any Preferred Shares we issue will have the right to elect members of the Board and class voting rights on certain matters.***

Holders of any Preferred Shares we issue, voting separately as a single class, will have the right to elect two members of the Board at all times that such Preferred Shares are outstanding, and in the event that distributions with respect thereto become two full years in arrears will have the right to elect a majority of the members of the Board until such arrearage is completely eliminated. Restrictions imposed on the declarations and payment of dividends or other distributions to the holders of our Common Shares and Preferred Shares, both by the Investment Company Act and by requirements imposed by rating agencies or the terms of any credit facility, may impair our ability to maintain our qualification as a RIC for federal income tax purposes. While we would intend to redeem our Preferred Shares to the extent necessary to enable us to distribute our income as required to maintain our qualification as a RIC, we can offer no assurance that such actions could be effected in time to meet the tax requirements.

***There are severe economic consequences for defaulting shareholders.***

If Shareholders fail to fund their commitment obligations or to make required capital contributions when due, as applicable, the Fund's ability to complete its investment program or otherwise continue operations may be substantially impaired. A Shareholder's failure to fund such amounts when due causes that Shareholder to become a defaulting Shareholder. A defaulting Shareholder will have ten business days to cure its deficiency following the written notice from the Fund with regard to the default, after which the Fund may accrue and collect interest on all defaulted amount, require reimbursement for all out-of-pocket expenses in connection with the collection and other efforts, withhold distributions, cause the defaulting Shareholder to forfeit up to 80% of its Shares in the Fund and transfer them to other Shareholders on a pro rata basis, or reduce the defaulting Shareholder's remaining commitment to zero. If a substantial number of Shareholders become defaulting Shareholders, this may severely limit opportunities for investment diversification and would likely reduce returns to the Fund and restrict the Fund's ability to meet loan obligations. Any single defaulting Shareholder could cause substantial costs to be incurred by the Fund if such default causes the Fund to fail to meet its contractual obligations or if the Fund must pursue remedial action against such Shareholder.

If the Fund fails to meet its contractual obligations related to a portfolio investment due to a defaulting Shareholder, the relevant portfolio company may have a cause of action against the Fund, which may include a claim against assets of the Fund other than the Fund's interest in such portfolio company. A creditor of the Fund (including a portfolio company with respect to which the Fund has failed to meet its contractual obligations) will not be bound to satisfy its claims from the assets attributable to a particular portfolio investment and such creditor generally may seek to satisfy its claims from the assets of the Fund as a whole. As a result, if a creditor's claims relating to a particular portfolio investment exceed the net assets attributable to that portfolio investment, the remaining assets of the Fund will likely be subject to such claim.

***A Shareholder's interest in us could be diluted if we issue additional Shares, which could reduce the overall value of an investment in us.***

Our Board may, in its sole discretion, conduct one or more additional private offerings of the Shares. Investors will not have preemptive rights to any Shares we issue in the future. Any such additional offering may have a

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dilutive effect on existing shareholders. To the extent we issue additional Shares at or below net asset value, after an investor purchases the Shares, an investor's percentage ownership interest in us will be diluted. If we were to sell the Shares below the then current net asset value per Share in any such additional offering, there would be an immediate dilution to our net asset value per Share. In addition, depending upon the terms and pricing of any additional offerings and the value of our investments, an investor may also experience dilution in the net asset and fair value of his, her or its Shares.

As a BDC, we generally are prohibited from selling the Shares at a price below net asset value per Share, which may be a disadvantage as compared with certain public companies. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our Board, closely approximates the fair value of such securities (less any distributing commission or discount). If we raise additional funds by issuing Shares, or senior securities convertible into or exchangeable for our Shares, then the percentage ownership of our Shareholders at that time will decrease, and you will experience dilution. We may sell the Shares, or warrants, options, or rights to acquire such Shares at a price below the then current net asset value of such Shares if (1) our Board and Independent Directors determine that such sale is in our best interests and the best interests of our Shareholders, and (2) our Shareholders, including a majority of those Shareholders who are not affiliated with us, approve such sale.

***Our Shareholders will experience dilution in their ownership percentage if they opt out of our distribution reinvestment plan.***

We have adopted a distribution reinvestment plan, pursuant to which we will reinvest all cash dividends or other distributions declared by the Board on behalf of investors who do not elect to receive their distributions in cash. As a result, if the Board authorizes, and we declare, a cash dividend or other distribution, then our shareholders who have not opted out of our distribution reinvestment plan will have their cash distributions automatically reinvested in additional Shares, rather than receiving the cash dividend or other distribution. Shareholders that opt out of our distribution reinvestment plan will experience dilution in their ownership percentage of our Shares over time.

***Certain investors will be subject to 1934 Act filing requirements.***

Because our Shares will be registered under the Exchange Act, ownership information for any person who beneficially owns 5% or more of our Shares will have to be disclosed in a Schedule 13G or other filings with the SEC. Beneficial ownership for these purposes is determined in accordance with the rules of the SEC, and includes having voting or investment power over the securities. In some circumstances, our shareholders who choose to reinvest their distributions may see their percentage stake in the Fund increased to more than 5%, thus triggering this filing requirement. Each shareholder is responsible for determining their filing obligations and preparing the filings. In addition, our shareholders who hold more than 10% of a class of our shares may be subject to Section 16(b) of the Exchange Act, which recaptures for the benefit of the Fund profits from the purchase and sale of registered stock (and securities convertible or exchangeable into such registered stock) within a six-month period.

***Special considerations for certain benefit plan investors.***

We intend to conduct our affairs so that our assets should not be deemed to constitute "plan assets" within the meaning of ERISA and the Plan Asset Regulations. In this regard, until such time, if any, as our Shares are considered "publicly-offered securities" within the meaning of the Plan Asset Regulations, we intend to limit investment in our Shares by "benefit plan investors" ("Benefit Plan Investors") to less than 25% of the total value of our Shares (each within the meaning of the Plan Asset Regulations). In this regard, until such time, if any, as our Shares constitute "publicly traded securities" within the meaning of the Plan Asset Regulations, we will have the power, among other things, to (a) reject, in whole or in part, the subscription of any prospective investor to the Fund; (b) withhold consent to the transfer of Shares, including in circumstances where the Adviser

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determines necessary or desirable in order to facilitate compliance with ERISA or the Plan Asset Regulations; (c) restrict participation in the distribution reinvestment program such that Benefit Plan Investors are not permitted to participate, and (c) call Drawdown Purchases on a non-pro rata basis, and all Shares of the Fund shall be subject to such terms and conditions.

If, notwithstanding our intent, the assets of the Fund were deemed to constitute "plan assets" (within the meaning of ERISA) of any Shareholder that is a Benefit Plan Investor, this would result, among other things, in (i) the application of the prudence and other fiduciary responsibility standards of ERISA to investments made by the Fund, and (ii) the possibility that certain transactions in which the Fund might seek to engage could constitute "prohibited transactions" under ERISA and the Code. If a prohibited transaction occurs for which no exemption is available, the Adviser and/or any other fiduciary that has engaged in the prohibited transaction could be required to (i) restore to the Benefit Plan Investor any profit realized on the transaction and (ii) reimburse the Benefit Plan Investor for any losses suffered by the Benefit Plan Investor as a result of the investment. In addition, each disqualified person (within the meaning of Section 4975 of the Code) involved could be subject to an excise tax equal to 15% of the amount involved in the prohibited transaction for each year the transaction continues and, unless the transaction is corrected within statutorily required periods, to an additional tax of 100%. The fiduciary of a Benefit Plan Investor who decides to invest in the Fund could, under certain circumstances, be liable for prohibited transactions or other violations as a result of their investment in the Fund or as co-fiduciaries for actions taken by or on behalf of the Fund or the Adviser. With respect to a Benefit Plan Investor that is an individual retirement account (an "IRA") that invests in the Fund, the occurrence of a prohibited transaction involving the individual who established the IRA, or his or her beneficiaries, would cause the IRA to lose its tax-exempt status. In addition, to the extent that the Fund represents and/or covenants to any contractual counterparty that (1) the assets of the Fund are not assets of the Benefit Plan Investors that invest in the Fund and/or (2) the transactions entered into between the Fund and the Benefit Plan Investor that invest in the Fund do not constitute "prohibited transactions" under ERISA and the Code, and the applicable representation is untrue and/or the applicable covenant is not met, additional liabilities may be incurred, including as a result of the unwinding of the applicable contract.

***Price declines and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing our net asset value through increased net unrealized depreciation.***

We will carry our investments at market value or, if no market value is ascertainable, at fair value. Decreases in the market values or fair values of our investments will be recorded as unrealized depreciation. The unprecedented declines in prices and liquidity in the corporate debt markets from mid-2007 through early-2010 resulted in significant net unrealized depreciation in the portfolios of many investment funds, reducing their net asset value. Depending on market conditions, we may face similar losses which could have a material adverse impact on our business, financial condition and results of operations and our net asset value.

***We are subject to risks in using custodians and other agents.***

We will depend on the services of custodians or other agents to carry out certain securities transactions and administrative services for us. In the event of the insolvency of a custodian, we may not be able to recover equivalent assets in full as we will rank among the custodian's unsecured creditors in relation to assets which the custodian borrows, lends or otherwise uses. In addition, our cash held with a custodian may not be segregated from the custodian's own cash, and we therefore may rank as unsecured creditors in relation thereto. The inability to recover assets from the custodian could have a material impact on our performance.

***Investing in our shares involves a high degree of risk and is highly speculative.***

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

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***The NAV of our shares may fluctuate significantly.***

The NAV and liquidity, if any, of the market for our shares may be significantly affected by numerous factors, some of which are beyond our control and may not be directly related to our operating performance. These factors include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in law, regulatory policies or tax guidelines, or interpretations thereof, particularly with respect to
RICs or BDCs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• loss of RIC or BDC status;

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

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in accounting guidelines governing valuation of our investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any shortfall in revenue or net income or any increase in losses from levels expected by investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• departure of either our adviser or certain of its respective key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainty surrounding the strength of U.S. economic recovery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• uncertainty between the U.S. and other countries with respect to trade policies, treaties and tariffs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant volatility in the market price and trading volume of companies in the sector in which we operate,
which are not necessarily related to the operating performance of these companies;

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

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

**Risks Related to the Adviser and Its Affiliates; Conflicts of Interest** 

***Our Adviser and its affiliates, including our officers and some of our directors, could face conflicts of interest caused by compensation arrangements with us, which could result in actions that are not in the best interests of our Shareholders.***

Many of our portfolio investments are expected to be made in the form of securities that are not publicly traded. As a result, our Adviser, as Valuation Designee, determines the fair value of these securities in good faith. In connection with that determination, our Adviser may provide our Board with valuations based upon the most recent portfolio company financial statements available and projected financial results of each portfolio company. In addition, certain of our Investment Committee members that are not on our Board have an indirect pecuniary interest in our Adviser. The participation of our Adviser in our valuation process, and the indirect pecuniary interest in our Adviser of certain of our Investment Committee members, could result in a conflict of interest because the Base Management Fee is based, in part, on our net assets, and our Incentive Fees are based, in part, on unrealized depreciation.

The part of the Base Management Fee and Incentive Fees payable to our Adviser that relates to our net investment income is computed and paid on income that may include interest income that has been accrued for GAAP (without any adjustments) but not yet received in cash, such as OID, debt instruments with PIK interest, interest and zero coupon securities. This fee structure may be considered to involve a conflict of interest for our Adviser to the extent that it may encourage our Adviser to favor debt financings that provide for deferred interest, rather than current cash payments of interest. Our Adviser may have an incentive to invest in deferred interest securities in circumstances where it would not have done so but for the opportunity to continue to earn the fees even when the issuers of the deferred interest securities would not be able to make actual cash payments to us on such securities. This risk could be increased because our Adviser is not obligated to reimburse us for any fees received even if we subsequently incur losses or never receive in cash the deferred income that was previously accrued.

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***We may make investments that could give rise to a conflict of interest.***

We will not invest in, or hold securities of, companies that are controlled by our affiliates' other clients. However, our affiliates' other clients may invest in, and gain control over, one of our portfolio companies. If our affiliates' other client or clients gain control over one of our portfolio companies, this may create conflicts of interest and subject us to certain restrictions under the Investment Company Act. As a result of these conflicts and restrictions, our Adviser may be unable to implement our investment strategies as effectively as they could have in the absence of such conflicts or restrictions. For example, as a result of a conflict or restriction, our Adviser may be unable to engage in certain transactions that they would otherwise pursue. In order to avoid these conflicts and restrictions, our Adviser may choose to exit these investments prematurely and, as a result, we may forego positive returns associated with such investments. In addition, to the extent that another client holds a different class of securities than us as a result of such transactions, our interests may not be aligned. Our ability to enter into transactions with our affiliates may be restricted.

As a BDC, we are prohibited under the Investment Company Act from participating in transactions with certain of our affiliates without the prior approval of a majority of the Independent Directors and, in some cases, the SEC. Any person that owns, directly or indirectly, 5% or more of our outstanding voting securities is our affiliate for purposes of the Investment Company Act, and we are generally prohibited from buying or selling any securities from or to such affiliate, absent the prior approval of our Board. The Investment Company Act also prohibits certain "joint" transactions with certain of our affiliates, which in certain circumstances could include investments in the same portfolio company (whether at the same or different times to the extent the transaction involves jointness), without prior approval of our Board and, in some cases, the SEC. If a person acquires more than 25% of our voting securities, we will be prohibited from buying or selling any security from or to such person or certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC. Similar restrictions limit our ability to transact business with our officers or directors or their affiliates. The SEC has interpreted the BDC regulations governing transactions with affiliates to prohibit certain "joint transactions" involving entities that share a common investment adviser or have investment advisers under common control. As a result of these restrictions, we may be prohibited from buying or selling any security from or to any portfolio company that is controlled by a fund managed by our Adviser or its respective affiliates except under certain circumstances or with the prior approval of the SEC, which may limit the scope of investment opportunities that would otherwise be available to us.

We may, however, invest alongside our Adviser's and/or its affiliates' other clients, in certain circumstances where doing so is consistent with applicable law and SEC staff interpretations, guidance and exemptive relief orders. However, we can offer no assurance that investment opportunities will be allocated to us fairly or equitably in the short-term or over time or that there may not be inadvertent errors in the application of our Adviser's allocation policy.

We, the Adviser, and other affiliates have applied for an amended exemptive relief that permits us flexibility to negotiate the terms of co-investments if our Board determines that it would be advantageous for us to co-invest with other accounts sponsored or managed by our Adviser or its affiliates in a manner consistent with our investment objective, positions, policies, strategies and restrictions, as well as regulatory requirements and other relevant factors. We cannot assure you, however, that we will continue to develop opportunities that comply with such limitations.

In situations where co-investment with our affiliates' other clients is not permitted under the Investment Company Act and related rules, existing or future staff guidance or the terms and conditions of exemptive relief granted to our Adviser and its affiliates by the SEC, our Adviser will need to decide which client or clients will proceed with the investment. Generally, we will not be entitled to make a co-investment in these circumstances and, to the extent that another client elects to proceed with the investment, we will not be permitted to participate. Moreover, except in certain circumstances, we will be unable to invest in any issuer in which an affiliates' other client holds a controlling interest. These restrictions may limit the scope of investment opportunities that would otherwise be available to us.

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***The time and resources that individuals associated with our Adviser devote to us may be diverted, and we may face additional competition due to the fact that our Adviser is not prohibited from raising money for or managing other entities that make the same types of investments that we target.***

Our Adviser will not be prohibited from raising money for and managing future investment entities that make the same types of investments as those we target. As a result, the time and resources that our Adviser devotes to us may be diverted. During times of intense activity in other programs, our Adviser may devote less time and resources to our business than is necessary or appropriate. In addition, we will compete with such other entities for the same investors and investment opportunities. We may co-invest with such investment entities only to the extent permitted by the Investment Company Act, the rules and regulations under the Investment Company Act and the exemptive relief under the Investment Company Act that we, the Adviser and other affiliates received from the SEC. However, even with such exemptive relief, we are unable to participate in certain transactions originated by our Adviser or its affiliates. Affiliates of our Adviser, whose primary business includes the origination of investments, engage in investment advisory businesses with accounts that compete with us. Affiliates of our Adviser have no obligation to make their originated investment opportunities available to us.

***Our ability to achieve our investment objective depends on our Adviser's ability to manage and support our investment process. If our Adviser were to lose its key professional(s), our ability to achieve our investment objective could be significantly harmed.***

We have no internal management capacity or employees other than our appointed executive officers and depend upon the investment expertise, skill and network of business contacts of our Adviser to achieve our investment objective. Our Adviser evaluates, negotiates, structures, executes, monitors and services our investments. Our future success will depend to a significant extent on the continued service and coordination of our Adviser's senior investment professionals. The departure of a significant number of our Adviser's senior investment professionals could have a material adverse effect on our ability to achieve our investment objective.

Our ability to achieve our investment objective also depends on our Adviser's ability to identify, analyze, invest in, finance and monitor companies that meet our investment criteria. Our Adviser's capabilities in structuring the investment process, providing competent, attentive and efficient services to us and facilitating access to financing on acceptable terms depend on the involvement of investment professionals in an adequate number and of adequate sophistication to handle the flow of transactions. To achieve our investment objective, our Adviser will need to retain, hire, train, supervise and manage new investment professionals to participate in our investment selection and monitoring process. Our Adviser may not be able to find qualified investment professionals in a timely manner or at all. Any failure to do so could have a material adverse effect on our business, financial condition and results of operations.

***Our Adviser is able to resign upon 60 days' notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.***

Our Adviser has the right, under the Investment Advisory Agreement, to resign at any time upon 60 days written notice, whether we have found a replacement or not. If our Adviser resigns, we may not be able to find a new investment adviser or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms within 60 days, or at all. If we are unable to do so quickly, our operations are likely to experience a disruption, our financial condition, business and results of operations as well as our ability to pay distributions are likely to be adversely affected and the value of our Common Share may decline. In addition, the coordination of our internal management and investment activities is likely to suffer if we are unable to identify and reach an agreement with a single institution or group of executives having the expertise possessed by our Adviser and its affiliates. Even if we are able to retain comparable management, whether internal or external, the integration of such management and their lack of familiarity with our investment objective may result in additional costs and time delays that may adversely affect our financial condition, business and results of operations.

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***Our Administrator is able to resign from its role as Administrator under the Administration Agreement, and a suitable replacement may not be found, resulting in disruptions that could adversely affect our business, results of operations and financial condition.***

Our Administrator has the right to resign under the Administration Agreement upon 60 days' written notice, whether a replacement has been found or not. If our Administrator resigns, it may be difficult to find a new administrator or hire internal management with similar expertise and ability to provide the same or equivalent services on acceptable terms, or at all. If a replacement is not found quickly, our business, results of operations and financial condition are likely to be adversely affected and the value of our Shares may decline. Even if a comparable service provider or individuals to perform such services are retained, whether internal or external, their integration into our business and lack of familiarity with our investment objective may result in additional costs and time delays that may materially adversely affect our business, results of operations and financial condition.

***The Advisory Agreement and the Administration Agreement were not negotiated on an arm's length basis and may not be as favorable to us as if they had been negotiated with an unaffiliated third party.***

Because at the time we had not yet commenced operations as a BDC and negotiated the agreements with an affiliate of our Adviser and our Administrator, the Advisory Agreement and the Administration Agreement were negotiated between related parties. Consequently, while the terms of each were subject to approval by our Board, including a majority of Independent Directors, such terms, including the advisory fees payable under the Investment Advisory Agreement may not be as favorable to us as if they had been negotiated with an unaffiliated third party.

Our Adviser's liability is limited under the Advisory Agreement, and we are required to indemnify our Adviser against certain liabilities, which may lead our Adviser to act in a riskier manner on our behalf than it would when acting for its own account.

Our Adviser does not assume any responsibility to us other than to render the services described in the Advisory Agreement, and it will not be responsible for any action of our Board in declining to follow our Adviser's advice or recommendations.

**General Risks Relating to an Investment in the Fund** 

***Generally***

The Fund and the Adviser have been established in connection with the Plan of Conversion and Private Offering and, as of the date of this registration statement, have limited prior operating history. Accordingly, the Fund does not have performance history for prospective investors to consider when making a decision to invest in the Fund.

***Limited Data***

All information and statements provided in this registration statement are provided "as is," with no guarantee of completeness, accuracy and timeliness, or of the results obtained from the use of such information or statements. Except where otherwise indicated, all information and statements provided herein are presented as of, and based on matters as they exist on, the date this registration statement was originally prepared, have not been audited, are incomplete, and may not be updated or otherwise revised to reflect information that subsequently becomes available, or circumstances existing or changes occurring after such date. Audax Private Debt undertakes no obligation to update the information or statements provided herein, and delivery of this registration statement as of any future date does not mean that Audax Private Debt has updated the information herein. Unless stated otherwise herein, neither the delivery of this registration statement at any time, nor any sale, will under any circumstances create an implication that the information contained herein is correct as of any time subsequent to the date this registration statement was originally prepared.

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***High Risk of Investment Loss***

An investment in the Fund involves a high level of risk. In considering an investment in the Fund, prospective investors should understand that the Fund may not achieve its investment objectives, and should be prepared to bear capital losses that might result from investments.

***Future and Past Performance***

The performance of the Adviser's Principals prior investments is not necessarily indicative of the Fund's future results. While the Adviser intends for the Fund to make investments that have estimated returns commensurate with the risks undertaken, there can be no assurances that any targeted internal rate of return or positive return on investment will be achieved. On any given investment, partial or complete loss of principal or capital is possible. There may be limitations on the Fund's ability to operate as intended due to regulations, market conditions, or other factors, any of which could result the Fund failing to achieve its target return. The performance of the loans that the Principals have made in prior vehicles may not be indicative of the performance of unitranche/stretch senior, or other investments that the Fund makes in the future.

***It is uncertain as to when profits, if any, will be realized by the Fund.***

By making long-term investments, it is uncertain when we will realize profits. Losses on unsuccessful investments may be realized before gains on successful investments are realized. The return of capital and the realization of gains, if any, generally will occur only upon the partial or complete disposition or refinancing of an investment. While an investment may be sold at any time, it is generally expected that this will not occur for a number of years after the initial investment. Furthermore, the expenses of our operations (including the annual Management Fee payable to the Adviser) may exceed its income, thereby requiring that the difference be paid from the our capital.

***Debt investments in general raise certain risks.***

The Fund is expected to make debt investments that may become non-performing in the future. In addition to the risks of borrower default, portfolio company assets may be mismanaged or otherwise may have declined in value and/or may in the future decline in value. Borrowers may contest enforcement of credit agreements or other remedies, seek bankruptcy protection against such enforcement, and/or bring claims for lender liability. Moreover, in certain situations, because the Fund, in the exercise of its remedies or rights under loan documents, may obtain contractual rights to participate in or to influence the management of borrowers, the likelihood is increased that a borrower may claim that the Fund interfered with the borrower's business, acted in bad faith in exercising its management rights or otherwise acted in a manner giving rise to a claim for lender liability. The exercise of remedies may not be led or controlled by the Fund, and may be led or controlled by a holder of a different class of securities which may be in conflict with the interests of the Fund. As a lender, the Fund may also be subject to penalties for violations of state usury limitations, which may result in penalties assessed against the Fund or other liability to the Fund.

In addition, investments in loans may involve workout negotiations or restructuring. However, even if a restructuring were successfully accomplished, there are risks of a substantial reduction in the interest rate and/or a substantial write-down of the principal of such loans, each of which may also have adverse tax consequences.

***The leveraged nature of portfolio companies and susceptibility to economic downturns raise risks.***

Some of the portfolio companies in which we will invest may be highly leveraged, thereby increasing the degree of credit risk inherent in each investment. Leverage often imposes restrictive financial and operating covenants on a company, in addition to the burden of debt service, and may impair its ability to finance future operations and capital needs or to pay principal and interest on our investments when due. The leveraged capital structure of portfolio companies will increase the exposure of our investments to any deterioration in a company's condition or industry, competitive pressures, or an adverse economic environment.

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Although unlikely, Fund investments may also be subordinated or junior to senior or priority indebtedness, some or all of which may be secured. In the event any portfolio company cannot generate adequate cash flow to meet debt service, the Fund may suffer a partial or total loss of capital invested in the portfolio company, which could adversely affect the Fund's returns.

***The Fund's due diligence of potential investments may not reveal all of the liabilities associated with such investments and may not reveal other weaknesses in the Fund's investments, which could lead to investment losses.***

Before making an investment, the Fund will assess the strengths and weaknesses of the borrowers and guarantors, as well as other factors and characteristics that are material to the performance of the investment. In making the assessment and otherwise conducting customary due diligence, the Fund will rely on resources available to it and, in some cases, an investigation by third parties. There can be no assurance that the Fund's due diligence process will uncover all relevant facts or that any investment will be successful.

Inaccurate information received from potential borrowers and guarantors could have a negative impact on the Fund's financial condition and results of operation. In deciding whether to extend credit or enter into transactions with potential borrowers and their guarantors, the Fund is forced to rely on information furnished to the Fund by or on behalf of these potential borrowers and/or guarantors, including financial statements. The Fund also must rely on representations of potential borrowers and guarantors as to the accuracy of that information. The Fund's performance could be negatively impacted to the extent the Fund relies on financial statements or other information that is misleading or inaccurate.

***Consumer, corporate and financial confidence may be adversely affected by current or future tensions around the world, fear of terrorist activity and/or military conflicts, localized or global financial crises or other sources of political, social or economic unrest.***

Such erosion of confidence may lead to or extend a localized or global economic downturn. In addition, limited availability of credit for consumers, homeowners and businesses, including credit used to acquire businesses, in an uncertain environment or economic downturn may have an adverse effect on the economy generally and on the ability of the Fund and its portfolio companies to execute their respective strategies and to receive an attractive multiple of earnings on the disposition of businesses. Economic uncertainty or a general economic downturn may have an adverse effect upon the Fund's portfolio companies.

Any significant changes in, among other things, economic policy (including with respect to interest rates and foreign trade), the regulation of the asset management industry, tax law, immigration policy, environmental protection and/or climate change policies or regulations and/or government entitlement programs during the life of the Fund could have a material adverse impact on the Fund and its investments. More generally, legislative acts, rulemaking, adjudicatory or other governmental activities, including in particular by the U.S. Congress, the SEC, the Federal Reserve, the Financial Industry Regulatory Authority, Inc. or other governmental, quasi-governmental or self-regulatory bodies, agencies and regulatory organizations could make it more difficult (or less attractive) for the Fund to achieve its investment objectives or for some or all of the Fund's portfolio entities to engage in their respective businesses.

***The ongoing armed conflict as a result of the war and international conflict in Ukraine and the Middle East have caused global uncertainty and may have a material adverse impact on us and our portfolio companies.***

The Russian invasion of Ukraine and the conflict in the Middle East have led, are currently leading, and for an unknown period of time may continue to lead to disruptions in local, regional, national, and global markets and economies affected thereby and could have a negative impact on the economy and business activity globally (including in the countries in which the Fund invests or may invest), and therefore could adversely affect the performance of the Fund's investments. Furthermore, the aforementioned conflicts and the varying involvement

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of the United States and other NATO countries could preclude prediction as to their ultimate adverse impact adverse impact on global economic and market conditions, and, as a result, presents material uncertainty and risk with respect to the Fund and the performance of its investments or operations, and the ability of the Fund to achieve its investment objectives. Additionally, to the extent that third parties, investors, or related customer bases have material operations or assets in such conflict zones, they may have adverse consequences related to the ongoing conflicts.

The ultimate course of conflicts such as the conflicts between Russia and Ukraine and in the Middle East, and their impact on global economic and commercial activity and conditions, and on the operations, financial condition and performance of the Fund or any particular industry, business or investee country, as well as the duration and severity of such effects, is impossible to predict. Developing and further governmental actions (military or otherwise) and international negotiations over such conflicts may cause additional disruption and constrain or alter existing financial, legal and regulatory frameworks and systems in ways that are adverse to the investment strategy which the Fund intends to pursue, all of which could adversely affect the Fund's ability to fulfill its investment objectives.

***Inflation and deflation present risks for us.***

Inflation risk is the risk that the value of certain investments or income thereon will be worth less in the future as inflation decreases the value of money. As inflation increases, the real value of the our investments can decline. Deflation risk is the risk that prices decline over time – the opposite of inflation. Deflation may have an adverse effect on the creditworthiness of companies in which we invest and may make defaults more likely, which may result in a decline in the value of our investments. In recent years, multiple world governments, as well as inter-governmental institutions, have undertaken, and in some cases may still be undertaking, various forms of fiscal stimulus measures, including setting interest rates that are at historic lows and undertaking, so called "quantitative easing." Such stimuli, unless successfully managed and scaled back at the appropriate time, may be inflationary. In addition, there is significant concern in macroeconomic terms about the levels of indebtedness carried by certain governments. The U.S. and other developed economies have begun to experience higher than normal inflation rates. It remains unclear whether substantial inflation in the U.S. and other developed economies will be sustained over an extended period of time or have a significant effect on the U.S. or other economies. While bringing with it a range of issues, one of the consequences of an extended period of a higher-than-desired level of inflation, is often to erode in real terms the value of government debt. This element of debt erosion may create an incentive for governments to be less robust in seeking to deal with inflation than might otherwise have been the case had the government concerned not suffered from a high level of indebtedness. If such inflation occurs it would have the negative consequences for the Fund set out above.

***Changes in laws or regulations governing our operations may adversely affect our business or cause us to alter our business strategy.***

We and our portfolio companies will be subject to regulation at the local, state and federal level. New legislation may be enacted or new interpretations, rulings or regulations could be adopted, including those governing the types of investments we will be permitted to make or that impose limits on our ability to pledge a significant amount of our assets to secure loans or that restrict the operations of a portfolio company, any of which could harm us and our Shareholders and the value of our investments, potentially with retroactive effect. For example, certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which influences many aspects of the financial services industry, have been amended or repealed, and the Code has been substantially amended and reformed. Any amendment or repeal of legislation, or changes in regulations or regulatory interpretations thereof, could create uncertainty in the near term, which could have a material adverse impact on our business, financial condition and results of operations.

In addition, any changes to the laws and regulations governing our operations relating to permitted investments may cause us to change our investment strategy in order to avail ourselves to new or different opportunities. Such

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changes could differ materially from the strategies and plans set forth in this registration statement and may shift our investment focus from the areas of expertise of our Adviser.

***The effect of global climate change may adversely affect our business and impact the operations of our portfolio companies.***

We and our portfolio companies will face risks associated with climate change including risks related to the impact of climate- and ESG-related legislation and regulation (both domestically and internationally), risks related to climate-related business trends, and risks stemming from the physical impacts of climate change.

New climate change-related regulations or interpretations of existing laws may result in enhanced disclosure obligations, which could negatively affect us or our portfolio companies and materially increase our regulatory burden. Increased regulations generally increase our costs, and we could continue to experience higher costs if new laws require us to spend more time or buy new technology to comply effectively.

Further, advances in climate science may change society's understanding of sources and magnitudes of negative effects on climate, which could negatively impact portfolio company financial performance and regulatory jeopardy. For our portfolio companies, business trends related to climate change may require capital expenditures, product or service redesigns, and changes to operations and supply chains to meet changing customer expectations. While this can create opportunities, not addressing these changed expectations could create business risks for portfolio companies.

The Fund may invest in or extend credit to companies that are located in, or have operations or customers in, areas that are subject to climate change. Significant physical effects of climate change including extreme weather events such as hurricanes or floods, can also have an adverse impact on certain of our portfolio companies and investments, especially our portfolio companies that rely on locations in the affected areas. Any investments located in or with customers in coastal regions may be affected by any future increases in sea levels or in the frequency or severity of hurricanes and tropical storms, whether such increases are caused by global climate changes or other factors. There may be significant physical effects of climate change that have the potential to materially impact the Fund's business and operations. As a result of these physical effects of climate change, the Fund may be vulnerable to the following: risks of property damage to the companies or properties in which the Fund is directly or indirectly invested; indirect financial and operational impacts from disruptions to the operations of the companies in which the Fund is directly or indirectly invested from severe weather; increased insurance premiums and deductibles or a decrease in the availability of coverage, for investments or companies or properties in which the Fund is directly or indirectly invested that are in areas subject to severe weather; decreased net migration to areas in which investments are located, resulting in lower than expected demand for the products and services of the investments; increased insurance claims and liabilities; increase in energy cost impacting operational returns; changes in the availability or quality of water or other natural resources on which the business depends; decreased consumer demand for consumer products or services resulting from physical changes associated with climate change (e.g., warmer temperatures or decreasing shoreline could reduce demand for residential and commercial properties previously viewed as desirable); incorrect long-term valuation of investments due to changing conditions not previously anticipated at the time of the investment; and economic disruptions arising from the foregoing.

As the effects of climate change increase, we expect the frequency and impact of weather and climate related events and conditions to increase as well. For example, unseasonal or violent weather events can have a material impact to businesses that focus on tourism or recreational travel. Additionally, the needs of customers of energy companies vary with weather conditions, primarily temperature and humidity. To the extent weather conditions are affected by climate change, energy use could increase or decrease depending on the duration and magnitude of any changes. Increases in the cost of energy could adversely affect the cost of operations of our portfolio companies if the use of energy products or services is material to their business. A decrease in energy use due to weather changes may affect some of our portfolio companies' financial condition, through decreased revenues.

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Extreme weather conditions in general require more system backup, adding to costs, and can contribute to increased system stresses, including service interruptions.

***Artificial Intelligence Technologies***

Recent technological advances in artificial intelligence and machine learning technologies (collectively, "AI Technologies"), including, for example, the OpenAI ChatGPT application, create opportunities as well as risks for Audax Private Debt, the Adviser, the Fund, other Audax Vehicles, investments and portfolio companies. While Audax Private Debt is evaluating ways to utilize AI Technologies in connection with its business, operating and investment activities, it expects certain of its portfolio companies will use such technologies. Actual usage of such AI Technologies will vary across the business of Audax Private Debt, and while Audax Private Debt expects from time to time to adopt and adjust usage policies and procedures governing the use of AI Technologies by its personnel, there is a risk of misuse of such AI Technologies.

Further, AI Technologies are highly reliant on the collection and analysis of large amounts of data and complex algorithms but it is not possible or practicable to incorporate all relevant data into models that AI Technologies utilize to operate, nor does Audax Private Debt generally expect to be involved in the collection of such data or development of such algorithms in the ordinary course. Therefore, it is expected that data in such models will contain a degree of inaccuracy and error, and potentially materially so, and that such data as well as algorithms in use could otherwise be inadequate or flawed, which would be likely to degrade the effectiveness of AI Technologies and could adversely impact Audax Private Debt, the Fund, the Fund's investments or the Fund's portfolio companies to the extent they rely on the work product of such AI Technologies. The volume and reliance on data and algorithms also make AI Technologies, and in turn Audax Private Debt, the Fund and its investments and portfolio companies, to the extent such AI Technologies are used, more susceptible to cybersecurity threats. In addition, Audax Private Debt, the Fund and the Fund's investments and portfolio companies could be exposed to risks to the extent third-party service providers or any counterparties use AI Technologies in their business activities. Audax Private Debt will not be in a position to control the manner in which third-party products are developed or maintained or the manner in which third-party services utilizing AI Technologies are provided. In addition, AI Technologies may be competitive with the business of certain portfolio companies or increase the potential for obsolescence of a portfolio company's products or services (particularly as the capabilities of AI Technologies improve), and accordingly the increased adoption and use of AI Technologies may have an adverse effect on portfolio companies or their respective businesses. For more information on risks relating to information security and data use see *"Item 1A. Risk Factors—Risks Related to Our Business and Structure—Cybersecurity risks and cyber incidents may adversely affect our business or those of our portfolio companies by causing a disruption to our operations, a compromise or corruption of confidential information and/or damage to business relationships, or those of our portfolio companies, all of which could negatively impact our business, results of operations or financial condition*" and "—*General Risks Related to an Investment in the Fund*—*European. Data Privacy and Security Laws*."

Moreover, use of AI Technologies by any of the parties described in the previous paragraphs could include the input of confidential information (including material non-public information and personal information) in contravention of non-disclosure agreements or by Audax Private Debt personnel or other related parties in contravention of Audax Private Debt's policies and procedures (or by any such parties in accordance with Audax Private Debt's policies, procedures and/or non-disclosure agreements), and in any case, could result in such confidential information becoming part of a dataset that is accessible by AI Technologies applications and users. The use of AI Technologies, including potential inadvertent disclosure of confidential Audax Private Debt information, could also lead to legal and regulatory investigations and enforcement actions.

Regulations related to AI Technologies may also impose certain obligations on organisations, and the costs of monitoring and responding to such regulations, as well as the consequences of non-compliance, could have an adverse effect on Audax Private Debt, the Fund and its investments and portfolio companies.

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AI Technologies and their current and potential future applications, including in the private investment and financial sectors, as well as the legal and regulatory frameworks within which they operate, continue to rapidly evolve, and it is impossible to predict the full extent of current or future risks related thereto.

***Market and interest rate fluctuations may pose risks for us.***

A portion of our returns will be derived from the realization of capital gains that will depend in part upon the market conditions at that time. The condition of the public and private financial markets, as well as the general economic climate, may have an adverse impact on investment value and therefore the ability to generate favorable returns on investment. General fluctuations in the market prices of securities and interest rates may adversely affect our investment opportunities and the value of our investments.

The majority of our debt investments will be floating rates, based on a spread to the SOFR or the prime rate. General interest rate fluctuations may have a substantial negative impact on our investments, including those with an interest floor. Any fluctuations in general interest rates would affect the reference rates used in the interest calculation on our investment. Any of these fluctuations individually, or in the aggregate, may have an adverse impact on the overall return of on our investments.

If general interest rates rise, there is a risk that the portfolio companies in which we hold floating rate securities will be unable to pay escalating interest amounts, which could result in a default under their loan documents with us. Rising interest rates could also cause portfolio companies to shift cash from other productive uses to the payment of interest, which may have a material adverse effect on their business and operations and could, over time, lead to increased defaults. In addition, rising interest rates may increase pressure on us to provide fixed rate loans to our portfolio companies, which could adversely affect our net investment income, as increases in our cost of borrowed funds, if any, would not be accompanied by increased interest income from such fixed-rate investments.

To the extent we borrow money to make investments, our net investment income depends, in part, upon the difference between the rate at which we borrow funds and the rate at which we invest those funds. As a result, we can offer no assurance that a significant change in market interest rates or a decrease in the spread between the rate at which we borrow and the rate at which we invest will not have a material adverse effect on our net investment income to the extent we use debt to finance investments. In periods of rising interest rates, our cost of funds would increase, which could reduce our net investment income.

***The financial projections of our portfolio companies could prove inaccurate.***

We generally evaluate the capital structure of portfolio companies on the basis of financial projections prepared by the management of such portfolio companies. These projected operating results will normally be based primarily on judgments of the management of the portfolio companies. In all cases, projections are only estimates of future results that are based upon assumptions made at the time that the projections are developed. General economic conditions, which are not predictable with accuracy, along with other factors may cause actual performance to fall short of the financial projections that were used to establish a given portfolio company's capital structure. Because of the leverage that is typically employed by our portfolio companies, this could cause a substantial decrease in the value of our investment in the portfolio company. The inaccuracy of financial projections could thus cause our performance to fall short of our expectations.

***Contingent Liabilities Upon Disposition***

In connection with the disposition of an investment, the Fund and the Adviser may be required to make (and/or be responsible for another person's or entity's breach of) representations and warranties, e.g., about the business and financial affairs of the applicable portfolio company, the condition of its assets and the extent of its liabilities, in each case generally in the nature of representations and warranties typically made in connection

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with the sale of similar businesses, and may be responsible for the content of disclosure documents under applicable securities laws. They may also be required to indemnify the purchasers of such investment or underwriters to the extent that any such representations or disclosure documents are inaccurate. These arrangements may result in contingent liabilities, which would be borne by the Fund and, ultimately, its investors.

***We may enter into repurchase agreements.***

Subject to our investment objective and policies, we may invest in repurchase agreements as a buyer for investment purposes. Repurchase agreements typically involve the acquisition by us of debt securities from a selling financial institution such as a bank, savings and loan association or broker-dealer. The agreement provides that we will sell the securities back to the institution at a fixed time in the future for the purchase price plus premium (which often reflects the interests). We will not bear the risk of a decline in the value of the underlying security unless the seller defaults under its repurchase obligation. In the event of the bankruptcy or other default of a seller of a repurchase agreement, we could experience both delays in liquidating the underlying securities and losses, including (1) possible decline in the value of the underlying security during the period in which the Fund seeks to enforce its rights thereto; (2) possible lack of access to income on the underlying security during this period; and (3) expenses of enforcing its rights. In addition, as described above, the value of the collateral underlying the repurchase agreement will be at least equal to the repurchase price, including any accrued interest earned on the repurchase agreement. In the event of a default or bankruptcy by a selling financial institution, the Fund generally will seek to liquidate such collateral. However, the exercise of our right to liquidate such collateral could involve certain costs or delays and, to the extent that proceeds from any sale upon a default of the obligation to repurchase were less than the repurchase price, the Fund could suffer a loss.

***We may be exposed to litigation risks.***

In the ordinary course of its business, we may be subject to litigation from time to time. The outcome of such proceedings may materially adversely affect the value of us and may continue without resolution for long periods of time. Any litigation may consume substantial amounts of the Adviser's and the Principals' time and attention, and that time and the devotion of these resources to litigation may, at times, be disproportionate to the amounts at stake in the litigation. To the extent we seek to engage in origination and/or servicing directly, or has a financial interest in, or is otherwise affiliated with, an origination or servicing company, we will be subject to enhanced risks of litigation, regulatory actions and other proceedings. The expense of defending against claims by third parties and paying any amounts pursuant to settlements or judgments would generally be borne by us and would reduce net assets.

***Director Liability***

Although historically Audax Private Debt has done so only in a limited number of instances, the Fund may receive the right to appoint one or more representatives to the board of directors (or similar governing body) of the portfolio companies in which it invests. Serving on the board of directors (or similar governing body) of a portfolio company exposes the Fund's representatives, and ultimately the Fund, to potential liability. Not all portfolio companies may obtain insurance with respect to such liability, and the insurance that portfolio companies do obtain may be insufficient to adequately protect officers and directors from such liability. In addition, involvement in litigation can be time consuming for such persons and can divert the attention of such persons from the Fund's investment activities.

***Public Company Holdings***

Although it is not expected, the Fund's investment portfolio may contain securities issued by publicly held companies. Such investments may subject the Fund to risks that differ in type or degree from those involved with investments in privately held companies. Such risks include, without limitation, greater volatility in the valuation

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of such companies, increased obligations to disclose information regarding such companies, limitations on the ability of the Fund to dispose of such securities and debt at certain times, increased likelihood of shareholder litigation and insider trading allegations against such companies' executives and board members, including the Principals, and increased costs associated with each of the aforementioned risks. However, the Fund will not permit 10% or more of its total assets to be comprised of listed equity securities, other than such securities acquired or held, in the reasonable determination of the Adviser, (a) for liquidity purposes for the Fund, (b) for the purpose of making the issuer of such security a private, non-listed issuer, or (c) prior to the issuer of such security listing on a national securities exchange.

***To the extent we make investments in restructurings and reorganizations they may be subject to greater regulatory and legal risks than other traditional investments in portfolio companies.***

We may make investments in restructurings that involve, or otherwise invest in the debt securities of, companies that are experiencing or are expected to experience severe financial difficulties. These severe financial difficulties may never be overcome and may cause such companies to become subject to bankruptcy proceedings. Investments in companies operating in workout or bankruptcy modes present additional risks, including fraudulent conveyance, voidable preference and equitable subordination risks. Further, these investments could subject us to certain additional potential liabilities that may exceed the value of our original investment. For instance, under certain circumstances, payments to us and our distributions to Shareholders may be reclaimed if any such payment or distribution is later determined to have been a fraudulent conveyance, preferential payment or similar transaction under applicable bankruptcy and insolvency laws. Furthermore, investments in restructurings may be adversely affected by statutes relating to fraudulent conveyances, voidable preferences, lender liability and a court's discretionary power to disallow, subordinate or disenfranchise particular claims. Under certain circumstances, a lender that has inappropriately exercised control of the management and policies of a debtor may have its claims subordinated or disallowed, or may be found liable for damages suffered by parties as a result of such actions. The level of analytical sophistication, both financial and legal, necessary for successful financing to companies experiencing significant business and financial difficulties is unusually high. We cannot assure investors that we will correctly evaluate the value of the assets collateralizing our loans or the prospects for a successful reorganization or similar action.

***European Data Privacy and Security Laws***

Regulation (EU) 2016/679 ("GDPR"), which following the United Kingdom's withdrawal from the EU is incorporated into the law of England and Wales, Scotland and Northern Ireland by virtue of the European Union (Withdrawal) Act 2018 and as amended by the Data Protection, Privacy and Electronic Communications (Amendments etc.) (EU Exit) Regulations 2019 (SI 2019/419) ("UK GDPR"), imposes stringent operational requirements on entities which process personal data and provides for onerous penalties of up to the greater of 4% of an organization's annual worldwide turnover or EUR 20 million/GBP 17.5 million respectively for breaches, including in respect of requirements to report personal data breaches, to inform individuals about how their personal data will be collected and used or to implement or maintain appropriate security systems and protocols. While the Fund and the Adviser will endeavor to maintain processes, procedures and systems to avoid such breaches and penalties, there can be no assurance that these will always be effective in doing so. The UK's data protection authority, the Information Commissioner's Office, has indicated that it will continue to enforce the UK GDPR in line with the enforcement of the GDPR in the EU. However, any future divergence between the EU and UK data protection regimes may create a greater dual regulatory compliance burden in circumstances where entities are subject to both regimes. In addition, the GDPR and UK GDPR, along with recent legal developments in Europe, impose restrictions and have created complexity regarding transfers of personal data from the EU and the UK to the U.S. For example, the European Commission introduced updated Standard Contractual Clauses in 2021 for international transfers of personal data, and the UK has introduced an international data transfer agreement to be used for restricted transfers from the UK, as well as a UK addendum to the Standard Contractual Clauses, both of which came into effect on March 21, 2022. This changing landscape and the process of ensuring that such restricted transfers continue to comply with the GDPR and the UK GDPR may lead to additional costs and increase overall risk exposure for the Fund and the Adviser.

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***Electronic Delivery of Information***

Pursuant to the subscription agreement entered into by any Member, each Member is expected to consent to electronic delivery (including email, facsimile or posting on the Fund's web-based investor reporting site or other Internet service in accordance with the LLC Agreement) of (i) any notices or communications required or contemplated to be delivered to such Member by the Fund, the Adviser or any of their respective affiliates pursuant to applicable law or regulation (including the Advisers Act), at the option of the person making such delivery, and (ii) capital call notices; other notices, requests, demands, consents and communications; and financial statements, reports, schedules, certificates or opinions required to be provided to such Member under the LLC Agreement or under any side letter or other similar agreement with such Member. There will be certain costs and risks (e.g., system outages) associated with electronic delivery, and there can be no assurance that any electronic delivery method is secure. The Adviser generally will not be responsible for any computer viruses, malfunctions, information theft or other problems that may be associated with the use of electronic delivery in connection with the Fund's activities. 

***CFIUS and Similar Non-U.S. Regulatory Regimes***

Current laws and regulations in various jurisdictions give heads of state and regulatory bodies the authority to block or impose conditions with respect to acquisitions of, and investments in, local entities by foreign persons if that acquisition or investment threatens to impair national or economic security or is otherwise deemed undesirable. In addition, many jurisdictions restrict foreign investment by taking steps including but not limited to placing limitations on foreign investment, implementing investment screening or approval mechanisms, and restricting the employment of foreigners as key personnel. In addition, a number of U.S. states are passing and implementing state laws prohibiting or otherwise restricting the acquisition of interests in real property located in the state by foreign persons ("Foreign Ownership Laws").

In some cases, the Fund's investments involving a U.S. business (including a U.S. branch or subsidiary of a company domiciled outside of the United States) may be subject to review and approval by the Committee on Foreign Investment in the United States ("CFIUS"). In the event that CFIUS or any non-U.S. equivalent thereof reviews one or more investments or in the event that Foreign Ownership Laws or the Outbound Investment Screening Regime (as defined below) applies to a particular investment, there can be no assurance that the Fund will be able to maintain or proceed with such investments on terms that are acceptable to the managing member.

CFIUS may recommend that the U.S. President block such transactions, or CFIUS may impose conditions on such transactions, certain of which may materially and adversely affect the Fund's ability to execute its investment strategy. Additionally, CFIUS or any non-U.S. equivalent thereof may seek to impose limitations on one or more such investments that may prevent the Fund from maintaining or pursuing investment opportunities that the Fund otherwise would have maintained or pursued which could adversely affect the performance of the Fund's investment in such portfolio investments and thus the performance of the Fund. Legislation to reform CFIUS was signed into law on August 13, 2018, and final regulations implementing this legislation were enacted in 2020. The legislation and its implementing regulations, among other things, expand the scope of CFIUS's jurisdiction to cover more types of transactions and empower CFIUS to scrutinize more closely investments in U.S. "critical infrastructure," "critical technology," and "sensitive personal data" companies, including investments involving foreign shareholders that may be deemed "non-passive." These reforms could impact the ability of non-U.S. shareholders to participate in the Fund's investments, which may impair the Fund's ability to execute its investment strategy. They could also increase the number of transactions involving the Fund that would be subject to CFIUS review and investigation as well as the timing and substantive risks described above. The outcome of CFIUS's and other foreign direct investment processes may be difficult to predict, and there is no guarantee that, if applicable to a Portfolio Entity, the decisions of CFIUS would not adversely impact the Fund's investment in such entity. The Limited Liability Company Agreement contains certain provisions that may require certain shareholders to be excluded from participating in an investment, for example where their participation is at risk of jeopardizing the Fund's ability to successfully acquire, hold, operate, sell, transfer, exchange, pledge or dispose of a prospective portfolio investment in light of legal, regulatory or other similar considerations.

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In response to mounting national security concerns regarding foreign ownership of U.S. land, several U.S. states have recently enacted or proposed Foreign Ownership Laws in an effort to limit foreign ownership of real property. These Foreign Ownership Laws may impact the ability of non-U.S. shareholders to participate in the Fund's investments, which may impair the Fund's ability to execute its investment strategy. Across the United States, additional proposals to limit foreign ownership of real property are currently working their way through the legislative process, and it is expected that many such proposals will become law in the near future.

Further, the U.S. President signed an Executive Order in August 2023 which establishes an outbound investment screening regime that is intended to regulate investment by U.S. persons into a "country of concern" relating to certain advanced technology sectors that could impact military, intelligence, surveillance, or cyber-enabled capabilities (the "Outbound Investment Screening Regime"). The Outbound Investment Screening Regime is currently undergoing a rulemaking process by the U.S. Department of the Treasury and is not expected to be implemented until final rules are promulgated. As initially proposed, the Outbound Investment Screening Regime would prohibit or require notification for certain investments in companies that are engaged in covered national security technologies (initial proposals include semiconductors and microelectronics; quantum information technologies; and certain artificial intelligence systems). As a result of the Outbound Investment Screening Regime, the Fund may incur significant delays and costs, be altogether prohibited from making a particular investment, or impede or restrict syndication or sale of Fund assets to certain buyers, all of which could adversely affect the Fund's ability to meet its investment objectives.

These laws could limit the Fund's ability to invest in certain entities or impose burdensome notification requirements, operational restrictions, or delays in pursuing and consummating transactions. The effect of such laws could also result in the Fund excluding (in whole or in part) the participation of certain shareholders from certain transactions. As a result, other shareholders may be required to provide additional capital to make the investment and would have a larger pro rata share than if all the shareholders had participated.

The Fund's investments outside of the United States may also face delays, limitations, or restrictions as a result of notifications made under and/or compliance with these legal regimes and rapidly-changing agency practices. Other countries continue to establish and/or strengthen their own national security investment clearance regimes, including in response to U.S. encouragement of other countries to impose CFIUS-like regulations on foreign investment in certain sectors and assets on national security grounds. These regulatory regimes could have a corresponding effect of limiting the Fund's ability to make investments in such countries. Examples include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• India: In April 2020, the Government of India issued Press Note No. 3 (2020 Series), which updated the
country's existing national security regime such that any foreign investment (i) by or from an entity of any country that shares its land border with India or (ii) whose beneficial owner of an investment into India is situated in, or
is a citizen of, any country that shares its land border with India, can only be made with prior approval of the Government of India. Further clarity is awaited from the Government of India on what constitutes beneficial ownership, but the
application of this rule may inhibit the Fund's ability to consummate investments involving India. As a result, the Fund may incur significant delays and costs or be altogether prohibited from making a particular investment, all of which could
adversely affect the Fund's ability to meet its investment objectives. Uncertainty resulting from the application of the NDI Rules may also lead to higher amounts of, or longer durations of, borrowings by the Fund and may require partial or
full exclusion of any shareholders from countries bordering India from such investments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• EU: Following the EU's implementation of an EU-wide mechanism to
coordinate the screening of foreign investment on national security grounds across EU Member States in October 2020, the majority of EU Member States have now introduced foreign investment screening regimes which could impede, restrict, and/or delay
the Fund's investments that have a nexus with the European Union.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Australia: Legislation passed in 2020 expands the criteria used to determine whether a transaction must be
formally identified to the country's Foreign Investment Review Board and affords the government

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new call-in powers to review transactions that may pose a national security risk. United Kingdom: On January 4, 2022, the screening regime under the National Security and Investment Act 2021 entered into force, requiring mandatory notification for certain acquisitions in 17 strategic sectors and giving the UK government broad powers to review certain acquisitions in any economic sector. <br>

Other jurisdictions are similarly in the midst of ongoing reform that may establish further restrictions and increase risk by enhancing governments' powers to scrutinize, impose conditions on, and potentially block mergers, acquisitions, and other transactions. These requirements and the disclosure process may delay or otherwise impact the Fund's acceptance and drawdown of Capital Commitments from certain investors and approval of transfers by or to certain shareholder. Delays in the Fund's ability to accept or draw down Capital Commitments may adversely impact the ability of the Fund to make investments in countries such as India, the European Union, Australia, and the UK and the timing of such investments. The foregoing requirements may also result in circumstances in which the Fund determines not to pursue certain potential investment opportunities in these countries. Heightened scrutiny of foreign direct investment worldwide may also make it more difficult for the Fund to identify suitable buyers for investments upon exit and may constrain the universe of exit opportunities for an investment in an issuer. As a result of such regimes, the Fund may incur significant delays and costs, be altogether prohibited from making a particular investment, or impede or restrict syndication or sale of Fund assets to certain buyers, all of which could adversely affect the Fund's ability to meet its investment objectives.

***Enhanced Scrutiny and Potential Regulation of the Private Investment Fund Industry and the Financial Services Industry***

The alternative asset management and financial services industries are subject to enhanced governmental scrutiny and/or increased regulation, and a number of legislative initiatives have been signed into law affecting alternative investment firms, including the Dodd-Frank Act, a key feature of which is the potential extension of prudential regulation by the Board of Governors of the Federal Reserve System (the "Federal Reserve") to nonbank financial companies that are not currently subject to such regulation but that are determined to pose risk to the U.S. financial system. The Dodd-Frank Act defines a "nonbank financial company" as a company that is predominantly engaged in activities that are financial in nature. The Financial Stability Oversight Council (the "FSOC"), an interagency body created to monitor and address systemic risk, has the authority to subject such a company to supervision and regulation by the Federal Reserve (including capital, leverage and liquidity requirements) if the FSOC determines that such company is systemically important, in that its material financial distress or the riskiness of its activities could pose a threat to the financial stability of the United States. The Dodd-Frank Act does not contain any minimum size requirements for such a determination by the FSOC, and it is possible that it could be applied to private funds, particularly large, highly leveraged funds.

The Dodd-Frank Act also imposes a number of restrictions on the relationship and activities of banking organizations with certain private equity funds and hedge funds and other provisions that affect the private equity industry, either directly or indirectly. Included in the Dodd-Frank Act is the so-called "Volcker Rule," (as amended, and together with its implementing regulations) which generally prohibits any "banking entity" (generally defined as (i) any insured depository institution, subject to certain exceptions including for a depository institution that (together with every company that controls it) has $10 billion or less in total consolidated assets and trading assets and liabilities that are less than 5% of total consolidated assets, (ii) any company that controls such an institution, (iii) a non-U.S. bank that is treated as a bank holding company for purposes of U.S. banking law, and (iv) any affiliate or subsidiary of the foregoing entities) from sponsoring or acquiring or retaining an ownership interest in a private equity fund or hedge fund that is not subject to the provisions of the Investment Company Act in reliance upon either Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act, subject to certain exceptions. Prospective investors in the Fund that are banking entities should consult their bank regulatory counsel prior to making an investment.

The Dodd-Frank Act, as well as future related legislation, may have an adverse effect on the private equity industry generally and/or on Audax Private Debt or the Fund, specifically. Therefore, there can be no assurance

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that any continued regulatory scrutiny or initiatives will not have an adverse impact on Audax Private Debt or otherwise impede the Fund's activities. Federal, state, and local legislators and regulators regularly introduce measures or take actions that may modify the regulatory requirements applicable to the financial industry. Changes in laws, regulations or regulatory policies could adversely affect the private equity industry generally and/or Audax Private Debt or the Fund in substantial and unpredictable ways. We cannot predict if new legislation or regulations will be enacted or adopted and, if enacted or adopted, the effect that it would have on the private investment fund industry. In that regard, prospective investors should note that any significant changes in, among other things, banking and financial services regulation, including the regulation of the asset management industry, could have a material adverse impact on the Fund and its activities.

***There is no public market for the Shares, and we do not expect any market for the Shares to develop.***

There is no existing trading market for the Shares. We do not expect any market for the Shares to develop in the future or, if developed, such market may not be sustained. In the absence of a trading market or unless we choose to conduct a tender offer, an investor may be unable to liquidate an investment in the Shares.

***We may be unable to invest a significant portion of the net proceeds of any offering of the Shares on acceptable terms in an acceptable timeframe.***

Delays in investing the net proceeds of any offering of the Shares may impair our performance. We cannot assure you we will be able to identify any investments that meet our investment objective or that any investment that we make will produce a positive return. We may be unable to invest the net proceeds of any offering of the Shares on acceptable terms within the time period that we anticipate or at all, which could harm our financial condition and operating results.

Before investing our cash on hand, we will invest such primarily in cash equivalents, U.S. government securities and other high-quality debt instruments maturing in one year or less from the time of investment. This will produce returns that are significantly lower than the returns that we expect to achieve when our portfolio is fully invested in securities meeting our investment objective. As a result, any distributions that we pay while our portfolio is not fully invested in securities meeting our investment objective may be lower than the distributions that we may be able to pay when our portfolio is fully invested in securities meeting our investment objective.

***Shareholders may be subject to filing requirements under the Exchange Act as a result of an investment in us.***

Because the Shares will be registered under the Exchange Act, ownership information for any person who beneficially owns 5% or more of the Shares has to be disclosed in a Schedule 13D or other filings with the SEC. Beneficial ownership for these purposes is determined in accordance with the rules of the SEC, and includes having voting or investment power over the securities. In some circumstances, investors who choose to reinvest their distributions may see their percentage stake in us increased to more than 5%, thus triggering this filing requirement. Although we provide in our quarterly statements the amount of outstanding Shares and the amount of the investor's Shares, the responsibility for determining the filing obligation and preparing the filing remains with the investor. In addition, owners of 10% or more of the Shares are subject to reporting obligations under Section 16(a) of the Exchange Act.

***Shareholders may be subject to the short-swing profits rules under the Exchange Act as a result of an investment in us.***

Persons with the right to appoint a director or who hold more than 10% of a class of the Shares may be subject to Section 16(b) of the Exchange Act, which recaptures for the benefit of the issuer profits from the purchase and sale of registered stock within a six-month period.

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**Certain U.S. Federal Income Tax Risks** 

***To the extent that we do not realize income or choose not to retain after-tax realized net capital gains, we will have a greater need for additional capital to fund our investments and operating expenses.***

To maintain our RIC status for U.S. federal income tax purposes, we must distribute (or be treated as distributing) in each taxable year dividends for tax purposes equal to at least 90% of our investment company taxable income and net tax-exempt income for that taxable year, and may either distribute or retain our realized net capital gains from investments. Unless investors elect to reinvest distributions, earnings that we are required to distribute to shareholders will not be available to fund future investments. Accordingly, we may have insufficient funds to make new and follow-on investments, which could have a material adverse effect on our financial condition and results of operations. Because of the structure and objectives of our business, we may experience operating losses and expect to rely on proceeds from sales of investments, rather than on interest and dividend income, to pay our operating expenses. We cannot assure investors that we will be able to sell our investments and thereby fund our operating expenses.

***We will be subject to corporate-level U.S. federal income tax if we are unable to maintain our qualification as a RIC under Subchapter M of the Code, including as a result of our failure to satisfy the RIC distribution requirements.***

Although we intend to elect to be treated as a RIC for U.S. federal income tax purposes, we cannot assure investors that we will be able to continue to qualify for and maintain RIC status. To maintain RIC status under the Code and to avoid corporate-level U.S. federal income tax, we must meet the following annual distribution, income source and asset diversification requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We must distribute (or be treated as distributing) dividends for tax purposes in each taxable year equal to at
least 90% of each of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the sum of our net ordinary income and realized net short-term capital gains in excess of realized net long-term
capital losses or, investment company taxable income, if any, for that taxable year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• our net tax-exempt income for that taxable year.

The asset coverage ratio requirements under the Investment Company Act and financial covenants under our loan and credit agreements could, under certain circumstances, restrict us from making distributions necessary to satisfy the distribution requirement. In addition, as discussed in more detail below, our income for tax purposes may exceed our available cash flow. If we are unable to obtain cash from other sources, we could fail to satisfy the distribution requirements that apply to a RIC. As a result, we could lose our RIC status and become subject to corporate-level U.S. federal income tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We must derive at least 90% of our gross income for each taxable year from distributions, interest, gains from
the sale of or other disposition of stock or securities or similar sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We must meet specified asset diversification requirements at the end of each quarter of our taxable year. The
need to satisfy these requirements to prevent the loss of RIC status may result in our having to dispose of certain investments quickly on unfavorable terms. Because most of our investments will be relatively illiquid, any such dispositions could be
made at disadvantageous prices and could result in substantial losses.

If we fail to maintain our qualification for tax treatment as a RIC for any reason, the resulting U.S. federal income tax liability could substantially reduce our net assets, the amount of income available for distribution, and the amount of our distributions.

***Our portfolio investments may present special tax issues.***

Investments in below-investment grade debt instruments and certain equity securities may present special tax issues for us. U.S. federal income tax rules are not entirely clear about certain issues, including when we may

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cease to accrue interest, OID or market discount, when and to what extent certain deductions may be taken for bad debts or worthless equity securities, how payments received on obligations in default should be allocated between principal and interest income, as well as whether exchanges of debt instruments in a bankruptcy or workout context are taxable. These matters could cause us to recognize taxable income for U.S. federal income tax purposes, even in the absence of cash or economic gain, and require us to make taxable distributions to our shareholders to maintain our RIC status or preclude the imposition of either U.S. federal corporate income or excise taxation. Additionally, because such taxable income may not be matched by corresponding cash received by us, we may be required to borrow money or dispose of other investments to be able to make distributions to our Shareholders. These and other issues will be considered by us, to the extent determined necessary, so that we aim to minimize the level of any U.S. federal income or excise tax that we would otherwise incur.

***If we do not qualify as a "publicly offered regulated investment company," as defined in the Code, certain U.S. Shareholders may be treated as having received an additional distribution from us in the amount of such U.S. Shareholders' allocable share of the Base Management Fee and Incentive Fees paid to our Adviser and certain of our other expenses, and these fees and expenses will be treated as miscellaneous itemized deductions of such U.S. Shareholders.***

A "publicly offered regulated investment company" or "publicly offered RIC" is a RIC whose shares are either (i) continuously offered pursuant to a public offering within the meaning of Section 4 of the Securities Act, (ii) regularly traded on an established securities market or (iii) held by at least 500 persons at all times during the taxable year. We anticipate that we will not qualify as a publicly offered RIC. If we are not treated as a "publicly offered RIC" for any calendar year, each U.S. Shareholder that is an individual, trust or estate will be treated as having received an additional distribution from us in the amount of such U.S. Shareholder's allocable share of the Base Management Fees and Incentive Fees paid to our Adviser and certain of our other expenses for the calendar year, and the relevant portion of the fees and expenses will be treated as miscellaneous itemized deductions of such U.S. Shareholder that are deductible only to the extent permitted by applicable law. Under current law, such expenses will not be deductible by any such U.S. Shareholder for tax years that begin prior to January 1, 2026 and are deductible subject to limitation thereafter.

***To the extent OID or PIK constitutes a portion of our income, we will be exposed to risks associated with the deferred receipt of cash representing such income.***

Our investments may include instruments issued with OID or PIK provisions. To the extent OID or PIK constitutes a portion of our income, we will be exposed to typical risks associated with such income being required to be included in taxable and accounting income prior to receipt of cash, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• instruments issued with OID may have unreliable valuations because the accruals require judgments about
collectability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• instruments issued with OID may create heightened credit risks because the inducement to trade higher rates for
the deferral of cash payments typically represents, to some extent, speculation on the part of the borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• for accounting purposes, cash distributions to shareholders derived from OID income are not considered to have
been made from our paid-in capital, although they may be paid from the proceeds of any offering of the Shares. Thus, although a distribution of OID income comes from the cash invested by the shareholders, the
Investment Company Act does not require that shareholders be given notice of this fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in the case of PIK "toggle" debt, a PIK election has the simultaneous effects of increasing the AUM,
thereby increasing our base management fee, and increasing our investment income.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OID creates risk of non-refundable cash payments to our Adviser based on non-cash accruals that may never be realized.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• in addition, in the event we recognize deferred loan interest income in excess of our available capital as a
result of our receipt of PIK interest, we may be required to liquidate assets in order to pay a portion of the Base Management Fee.

***We may have difficulty paying our required distributions if we recognize income before or without receiving cash and representing such income.***

For federal income tax purposes, we may be required to recognize taxable income in circumstances in which we do not receive a corresponding payment in cash. For example, if we hold debt obligations that are treated under applicable tax rules as having OID (such as zero coupon securities, debt instruments with PIK interest or, in certain cases, increasing interest rates or debt instruments that were issued with warrants), we must include in income each year a portion of the OID that accrues over the life of the obligation, regardless of whether cash representing such income is received by us in the same taxable year. We may also have to include in income other amounts that we have not yet received in cash, such as deferred loan origination fees that are paid after origination of the loan or are paid in non-cash compensation such as warrants or stock, or we may engage in transactions, including debt modifications or exchanges, that require us to recognize income without the corresponding receipt of cash. We anticipate that a portion of our income may constitute OID or other income required to be included in taxable income prior to receipt of cash. Further, we may elect to amortize market discount and include such amounts in our taxable income in the current year, instead of upon disposition, as an election not to do so would limit our ability to deduct interest expenses for tax purposes.

Because any OID or other amounts accrued will be included in our investment company taxable income for the year of the accrual, we may be required to make a distribution to our shareholders in order to satisfy the annual distribution requirement, even though we will not have received any corresponding cash amount. As a result, we may have difficulty meeting the annual distribution requirement necessary to qualify for and maintain RIC tax treatment under Subchapter M of the Code. We may have to sell some of our investments at times and/or at prices we would not consider advantageous, raise additional debt or equity capital or forgo new investment opportunities for this purpose. If we are not able to obtain cash from other sources, we may not qualify for or maintain RIC tax treatment and thus become subject to corporate-level income tax.

***We may not be able to pay distributions to holders of our Common Shares or Preferred Shares, our distributions to holders of our Common Shares or Preferred Shares may not grow over time, and a portion of our distributions to holders of our Common Shares or Preferred Shares may be a return of capital for U.S. federal income tax purposes.***

We intend to pay quarterly distributions to our shareholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions or year-to-year increases in cash distributions. If we are unable to satisfy the asset coverage test applicable to us as a BDC, our ability to pay distributions to our shareholders will be limited. All distributions will be paid at the discretion of our Board and will depend on our earnings, financial condition, maintenance of our qualification for RIC tax treatment, compliance with applicable BDC regulations, compliance with covenants under our debt financing agreements, if any, and such other factors as our Board may deem relevant from time to time.

The distributions we pay to our shareholders in a year may exceed our net ordinary income and capital gains for that year and, accordingly, a portion of such distributions may constitute a return of capital for U.S. federal income tax purposes that would reduce a shareholder's adjusted tax basis in its Shares or shares of preferred shares and correspondingly increase such shareholder's gain, or reduce such shareholder's loss, on disposition of such shares. Distributions in excess of a shareholder's adjusted tax basis in its Shares or shares of preferred shares will generally constitute capital gains to such shareholder.

Shareholders who periodically receive the payment of a distribution from a RIC consisting of a return of capital for U.S. federal income tax purposes may be under the impression that they are receiving a distribution of the

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RIC's net ordinary income or capital gains when they are not. Accordingly, shareholders should read carefully any written disclosure accompanying a distribution from us and the information about the specific tax characteristics of our distributions provided to shareholders after the end of each calendar year, and should not assume that the source of any distribution is our net ordinary income or capital gains.

***Some of our investments may be subject to corporate-level income tax.***

We may invest in certain debt and equity investments through taxable subsidiaries and the taxable income of these taxable subsidiaries will be subject to federal and state corporate income taxes. We may invest in certain foreign debt and equity investments which could be subject to foreign taxes (such as income tax, withholding and value added taxes).

***Legislative or regulatory tax changes could adversely affect investors.***

At any time, the federal income tax laws governing RICs or the administrative interpretations of those laws or regulations may be amended. Any of those new laws, regulations or interpretations may take effect retroactively and could adversely affect the taxation of us or our shareholders. Therefore, changes in tax laws, regulations or administrative interpretations or any amendments thereto could diminish the value of an investment in our Shares or the value or the resale potential of our investments.

***Certain shareholders may be subject to U.S. dividend withholding tax on our distributions.***

A Shareholder will be subject to U.S. federal dividend withholding tax on our distributions unless a withholding tax exemption applies. A Shareholder may also be subject to U.S. federal withholding tax if it does not comply with applicable U.S. tax requirements to certify its status for U.S. tax purposes. Amounts that are withheld, to the extent in excess of the Shareholder's U.S. federal income tax liability, can generally be recovered by filing a U.S. federal income tax return; however, the administrative burden and cost of filing such a U.S. federal income tax return may outweigh the benefit of recovering such amounts. See Appendix C for a discussion of U.S. federal dividend withholding tax rules.

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|:---|:---|
| **ITEM 2.** | **FINANCIAL INFORMATION**  |

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*The information in this section contains forward-looking statements that involve risks and uncertainties. See "Item 1A. Risk Factors" and "Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with these statements. You should read the following discussion in conjunction with the financial statements and related notes and other financial information appearing elsewhere in this Registration Statement.* 

**Discussion of Management's Operating Plans** 

***Overview***

We were originally organized on July 23, 2024 as a limited partnership under the laws of the State of Delaware. Prior to converting to a limited liability company under Delaware law on April 10, 2025 and electing to be regulated as a BDC on April 23, 2025, we operated as a private fund in reliance on an exemption from the definition of "investment company" under Section 3(c)(7) of the Investment Company Act. We have elected to be treated as a BDC under the Investment Company Act, and we intend to elect to be treated as a RIC under Subchapter M of the Code and to qualify as a RIC annually thereafter. As a BDC and a RIC, we must comply with certain regulatory requirements, such as the requirement to invest at least 70% of our assets in Qualifying Assets, source of income limitations, asset diversification requirements, and the requirement to distribute annually at least 90% of our investment company taxable income and tax-exempt interest.

Under our Advisory Agreement, we have agreed to pay the Adviser a management fee as well as an incentive fee based on our investment performance. Also, under the Administration Agreement, we have agreed to reimburse the Administrator for the allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations under the Administration Agreement, including, but not limited to, our allocable portion of the costs of compensation and related expenses of our Chief Compliance Officer, Chief Financial Officer and their respective staffs.

We intend to invest primarily in senior secured first lien loans, with minority exposure to second lien loans, subordinated or mezzanine loans, and equity and equity-like investments, such as equity and/or warrant kickers, in privately owned U.S. middle market companies. We use the term "middle market companies" to generally refer to companies with $15 million to $100 million of annual EBITDA, though we may invest in smaller or larger companies if attractive opportunities are available that are otherwise consistent with the strategy of the Fund. We expect that a majority of our investments will be in directly originated loans. Our investment strategy will also include a smaller allocation to more liquid credit investments such as broadly syndicated loans and corporate bonds which may be used for the purposes of maintaining liquidity for our share repurchase program and liquidity management.

Our investment objective is to generate current income and, to a lesser extent, capital appreciation. We seek to meet our investment objective by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• utilizing Audax Private Debt's investment team's experience in middle market credit underwriting,
senior team members of which average nearly 26 years of middle market debt investing through all phases of the credit cycle;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• benefiting from the platform developed by Audax Private Debt, including its broad deal sourcing capabilities,
investment expertise across the capital structure and proprietary industry insights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• performing thorough credit analyses on investment opportunities with a focus on principal preservation and
downside protection;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• building a diversified portfolio of investments by company and industry; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• rigorously monitoring company and portfolio performance.

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Most of our investments will be in private U.S. companies, however (subject to compliance with BDC requirements to invest at least 70% of assets in "eligible portfolio companies," which are generally privately offered securities issued by U.S. private or thinly-traded companies) we may also invest to some extent in non-U.S. companies. We may also invest in publicly traded loans or securities of larger corporate issuers on an opportunistic basis when market conditions create compelling potential return opportunities. Under normal circumstances, we will invest at least 80% of our total assets (which includes net assets plus borrowings for investment purposes) directly or indirectly in Private Credit Instruments. Derivative instruments will be counted towards our 80% policy to the extent they have economic characteristics similar to Private Credit Instruments. To the extent the Fund determines to invest indirectly in Private Credit Instruments, it may invest through certain synthetic instruments, which will be valued at market value or, if no market value is ascertainable, at fair value for the purpose of complying with the above mentioned policy. When determining the fair value of such a transaction, equity and/or warrant kickers offered in connection with such private credit transaction may be taken into account. The Fund will notify its shareholders at least 60 days prior to any change to the 80% investment policy described above.

***Revenues***

We plan to generate revenue primarily in the form of interest on the debt securities that we hold and capital gains, if any, on equity securities that we may acquire in portfolio companies.

***Expenses***

The costs associated with the investment team and staff of the Adviser, when and to the extent engaged in providing investment advisory services and management services to us, will be paid for by the Adviser. We bear all other fees, costs and expenses of our activities, operations, administration and transactions, including, but not limited to: (a) investment advisory fees, including management fees and incentive fees, to the Adviser, pursuant to the Advisory Agreement; (b) our allocable portion of compensation, overhead (including rent, office equipment and utilities) and other expenses incurred by the Administrator in performing its administrative obligations under the Administration Agreement, including but not limited to: (i) our Chief Compliance Officer, Chief Financial Officer and their respective staffs; (ii) investor relations, legal, operations and other non-investment professionals at the Administrator that performs duties for us; and (iii) any internal audit group personnel of Audax Private Debt or any of its affiliates; and (c) all other expenses of our operations, administrations and transactions.

With respect to costs incurred in connection with our organization and initial private offering, the Adviser has agreed to advance all such costs on our behalf. Unless the Adviser elects to cover such expenses pursuant to the Expense Support Agreement we entered into with the Adviser, we will be obligated to reimburse the Adviser for such advanced expenses in accordance with the terms of the Expense Support Agreement. See "*Item 1. Business—Expense Support and Conditional Reimbursement Agreement*."

From time to time, the Adviser, the Administrator or their affiliates may pay third-party providers of goods or services. We will reimburse the Adviser, the Administrator or such affiliates thereof for any such amounts paid on our behalf. From time to time, the Adviser or the Administrator may defer or waive fees and/or rights to be reimbursed for expenses. All of the foregoing expenses will ultimately be borne by our shareholders.

All costs incurred by the Fund in connection with its initial Private Offering and organization have been advanced by the Adviser or its affiliates subject to recoupment. The Adviser or its affiliates may in some circumstances be reimbursed for past payments of organization and offering costs made on the Fund's behalf.

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**Portfolio and Investment Activity** 

Our portfolio and investment activity for the three-month period ended March 31, 2025 and for the period from October 10, 2024 (commencement of operations) to December 31, 2024 was as follows:

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| | | |
|:---|:---|:---|
| **December 31, 2024** | **March 31, 2025**<br>**(unaudited)** | **October 10, 2024<br>(commencement of operations) to<br>December 31, 2024** |
|  Investments made in portfolio companies | $25859566 | $676324104 |
|  Investments sold | (58036961) | (742319) |
|  Net activity before repaid investments | $(32177395) | $675581785 |
|  Investments repaid | (18436411) | (29187835) |
|  Net Investment activity | $(50613806) | $646393950 |
|  Portfolio companies at beginning of period | 43 |  |
|  Number of new portfolio companies | 2 | 44 |
|  Number of exited portfolio companies | (1) | (1) |
|  Portfolio companies at end of period | 44 | 43 |
|  Number of investments made in existing portfolio companies | 30 | 43 |

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\* Totals may not foot due to rounding 

Our portfolio composition and weighted average yields as of March 31, 2025 and December 31, 2024 was as follows:

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| | | |
|:---|:---|:---|
|  | **March 31, 2025**<br>**(unaudited)** | **December 31, 2024** |
|  Portfolio composition, at fair value: |  |  |
|  First lien secured debt | $549609804 | $600377145 |
|  Unsecured debt |  |  |
|  Weighted average yields, at amortized cost: |  |  |
|  First lien secured debt | 9.85% | 10.11% |
|  Unsecured debt portfolio |  |  |
|  Total portfolio | 9.85% | 10.11% |
|  Interest rate type, at fair value: |  |  |
|  Fixed rate amount |  | $287327 |
|  Floating rate amount | $549609804 | $600089818 |
|  Fixed rate, as percentage of total |  | 0.05% |
|  Floating rate, as percentage of total | 100% | 99.95% |
|  Interest rate type, at amortized cost: |  |  |
|  Fixed rate amount | $4224562 | $3973959 |
|  Floating rate amount | $552067737 | $597964668 |
|  Fixed rate, as percentage of total | 0.76% | 0.66% |
|  Floating rate, as percentage of total | 99.24% | 99.34% |
|  Hedging |  |  |

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***Hedging***

The Fund may, but is not required to, enter into interest rate, foreign exchange or other derivative agreements to hedge interest rate, currency, credit or other risks, but the Fund does not generally intend to enter into any such derivative agreements for speculative purposes. Any derivative agreements entered into for speculative purposes are not expected to be material to the Fund's business or results of operations. These hedging activities, which will be in compliance with applicable legal and regulatory requirements, may include the use of futures, options and forward contracts. The Fund will bear the costs incurred in connection with entering into, administering and settling any such derivative contracts. There can be no assurance that any hedging strategy employed by the Fund will be successful.

The Fund intends to qualify as a "limited derivatives user" under Rule 18f-4 under the Investment Company Act, which generally will require the Fund to limit its derivatives exposure to 10% of its net assets at any time, excluding certain currency and interest rate hedging transactions.

**Financial Condition, Liquidity and Capital Resources** 

We expect to generate cash primarily from (i) the net proceeds of our private offerings of our shares, (ii) cash flows from our operations, (iii) any financing arrangements we may enter into in the future and (iv) any future offerings of our equity or debt securities. Our primary uses of cash will be for (i) investments in portfolio companies and other investments, (ii) the cost of operations (including paying the Adviser and the Administrator), (iii) cost of any borrowings or other financing arrangements and (iv) cash distributions to the holders of our shares.

**Critical Accounting Policies** 

The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. Changes in the economic environment, financial markets, and any other parameters used in determining such estimates could cause actual results to differ. Our critical accounting policies, including those relating to the valuation of our investment portfolio, are described below. The critical accounting policies should be read in connection with our risk factors as disclosed in "*Item 1A. Risk Factors*."

***Investments at Fair Value***

The Fund follows guidance in ASC 820, Fair Value Measurement ("ASC 820"), where fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are determined within a framework that establishes a three-tier hierarchy which maximizes the use of observable market data and minimizes the use of unobservable inputs to establish a classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, such as the risk inherent in a particular valuation technique used to measure fair value using a pricing model and/or the risk inherent in the inputs for the valuation technique. Inputs may be observable or unobservable. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund's own assumptions about the assumptions market participants would use in pricing the asset or liability based on the information available. The inputs or methodology used for valuing assets or liabilities may not be an indication of the risks associated with investing in those assets or liabilities.

In accordance with ASC 820, these inputs are summarized into the following hierarchy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 1: Quoted prices in available active markets for identical financial instruments that the Adviser has
the ability to access at the measurement date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 2: Quoted prices in markets that are not active or for which all significant inputs are observable,
either directly or indirectly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Level 3: Inputs that are unobservable and significant to the overall fair value measurement for the asset or
liability.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Adviser's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument.

This includes investment securities that are valued using "bid" and "ask" prices obtained from independent third party pricing services or directly from brokers (described in further detail below). Classifying securities as Level 3 is based on reviewing ASC 820-10-35 (formerly FSP No. 157-3, issued on October 10, 2008). As quotes received from independent third party pricing services or directly from brokers are generally indicative and not binding, and may also not be based on actual transactions, these inputs typically do not qualify as Level 2 inputs and therefore, in most cases, will be considered Level 3 inputs.

Under ASC 820, the fair value measurement also assumes that the transaction to sell an asset occurs in the principal market for the asset or, in the absence of a principal market, the most advantageous market for the asset, which may be a hypothetical market, and excludes transaction costs. The principal market for any asset is the market with the greatest volume and level of activity for such asset in which the reporting entity would or could sell or transfer the asset. In determining the principal market for an asset or liability under ASC 820, it is assumed that the reporting entity has access to such market as of the measurement date. Market participants are defined as buyers and sellers in the principal or most advantageous market that are independent, knowledgeable and willing and able to transact.

The Adviser determines fair value to be the price that would be received for an investment in a current sale, which assumes an orderly market is available for the market participants at the measurement date. When available, the Adviser bases the fair value of a large portion of the Company's investments on directly observable market prices or on market data derived from comparable assets. The Adviser's valuation policy considers the fact that no ready market exists for many of the securities in which the Company invests and that fair value for the Company's investments must be determined using unobservable inputs. The Adviser's valuation policy is intended to provide a consistent basis for determining the fair value of the Company's portfolio.

Inputs used to measure the fair value of an investment reflect management's best estimate of assumptions that would be used by market participants in pricing such investment in a hypothetical transaction. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may differ from the values that would have been used had a ready market existed for such investments and may differ materially from the values that the Company may ultimately realize upon the sale or liquidation of such investments.

***Investment Valuation Process***

The Fund's assets and liabilities will be valued in accordance with the valuation policies and procedures of the Fund and the Adviser, as may be amended from time to time, a copy of which will be available upon request. Such valuations will be made in accordance with Rule 2a-5 under the Investment Company Act, the SEC rule governing the valuation of a BDC's portfolio investments, and U.S. GAAP. The Board has designated the Adviser as its "valuation designee" pursuant to Rule 2a-5 under the Investment Company Act, and in that role the Adviser is responsible for performing fair value determinations relating to all of the Fund's investments, including periodically assessing and managing any material valuation risks and establishing and applying fair

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value methodologies, in accordance with valuation policies and procedures that have been approved by the Fund's Board. Even though the Board designated the Adviser as its "valuation designee," the Board's audit committee continues to be responsible for overseeing the processes for determining fair valuation.

When market prices are readily available, the Adviser shall value the Fund's investments at the current market price. Where it is possible to obtain independent third party market quotes for securities, the Adviser will use these quotes to obtain a value for those securities.

The Fund's investments are expected to include loans and other instruments that do not have readily ascertainable market prices. Assets that are not publicly traded or whose market prices are not readily available are valued at fair value as determined in good faith by the Adviser. The Adviser will determine fair value for those investments through a valuation process that will be conducted at the end of each fiscal quarter by the valuation committees of our Adviser with the assistance of the Adviser's investment and management personnel, finance and compliance teams, third-party valuation agents, and guidance from outside counsel, and reviewed by the audit committee of our Board.

The Adviser will utilize the following multi-step process each quarter in determining fair value for the Fund's investments for which market quotations are not readily available:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• First, the Adviser's investment professionals responsible for the portfolio investment and other senior
members of the Adviser's investment and management team, with oversight from the Adviser's finance team, will make initial valuations of each investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Second, the Adviser's investment professionals and management team, with oversight by the Adviser's
finance and compliance team, will document the preliminary valuation conclusions and oversee sample testing of valuations with third-party valuation agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Third, the preliminary valuation conclusions will be presented to the Adviser's valuation committees as
relevant, for consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fourth, the Adviser's valuation committees will discuss the recommended valuations and determine, in good
faith, the fair value of each investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fifth, the valuation determinations of the Adviser's valuation committees will be presented to the Adviser
and then shared with the Fund's chief executive officer and chief financial officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sixth, the Adviser will provide certain quarterly and annual reports to the Board.

***Investment Income Recognition***

***Interest Income***. Interest income is recorded on an accrual basis and includes the accretion of discounts and amortizations of premiums. Discounts from and premiums to par value on debt investments purchased are accreted/amortized into interest income over the life of the respective security using the effective interest method. The amortized cost of debt investments represents the original cost, including loan origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion of discounts and amortization of premiums, if any. Upon prepayment of a loan or debt security, any prepayment premiums, unamortized upfront loan origination fees and unamortized discounts are recorded as interest income in the current period.

***PIK Income***. The Fund may have loans in its portfolio that contain PIK provisions. PIK represents interest that is accrued and recorded as interest income at the contractual rates, increases the loan principal on the respective capitalization dates, and is generally due at maturity. Such income is included in interest income in the Fund's statement of operations. If at any point the Fund believes PIK is not expected to be realized, the investment generating PIK will be placed on non-accrual status. When a PIK investment is placed on non-accrual status, the accrued, uncapitalized interest is generally reversed through interest income. To maintain the Fund's

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status as a RIC, this non-cash source of income must be paid out to shareholders in the form of dividends, even though the Fund has not yet collected cash.

***Dividend Income***. Dividend income on preferred equity securities is recorded on the accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly-traded portfolio companies.

***Fee Income.*** The Fund may receive various fees in the ordinary course of business such as structuring, consent, waiver, amendment, syndication fees as well as fees for managerial assistance rendered by the Fund to the portfolio companies. Such fees are recognized as income when earned or the services are rendered.

***Non-Accrual Income.*** Loans are generally placed on non-accrual status when there is reasonable doubt that principal or interest will be collected in full. Accrued interest is generally reversed when a loan is placed on non-accrual status. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management's judgment regarding collectability. Non-accrual loans are restored to accrual status when past due principal and interest is paid current and, in management's judgment, are likely to remain current. Management may make exceptions to this treatment and determine to not place a loan on non-accrual status if the loan has sufficient collateral value and is in the process of collection.

***Quantitative and Qualitative Disclosures About Market Risk***

We are subject to financial market risks, including valuation risk, interest rate risk and currency risk.

***Valuation Risk***. Because there is not a readily available market value for most of the investments in our portfolio, we value most of our portfolio investments at fair value as determined in good faith by the Adviser under the oversight of our Board based on, among other things, the input of our management and Audit Committee. Because fair valuations, and particularly fair valuations of private securities and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based to a large extent on estimates, comparisons and qualitative evaluations of private information, our determinations of fair value may differ materially from the values that would have been determined if a ready market for these securities existed. See "*Item 1. Business*—*Investment Valuation Process*" and "*Item 2. Financial Information—Critical Accounting Policies—Investment Valuation Process*." Further, such investments are generally subject to legal and other restrictions on resale or otherwise are less liquid than publicly traded securities. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize significantly less than the value at which we have recorded it. In addition, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different than the unrealized gains or losses reflected in the valuations currently assigned. See "*Item 2. Financial Information—Discussion of Management's Operating Plans" and "—Critical Accounting Policies—Investments at Fair Value*."

***Interest Rate Risk***. Interest rate sensitivity refers to the change in our earnings that may result from changes in the level of interest rates. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income.

We regularly measure our exposure to interest rate risk. We assess interest rate risk and manage our interest rate exposure on an ongoing basis by comparing our interest rate sensitive assets to our interest rate sensitive liabilities. Based on that review, we determine whether or not any hedging transactions are necessary to mitigate exposure to changes in interest rates.

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We may hedge against interest rate fluctuations from time-to-time by using standard hedging instruments such as futures, options and forward contracts subject to the requirements of the Investment Company Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to our portfolio of investments.

**U.S. Federal Income Taxes** 

The Fund intends to elect to be taxed as a RIC under Subchapter M of the Code. As a RIC, the Fund generally will not have to pay corporate-level federal income taxes on any net ordinary income or net capital gains that the Fund distributes to its shareholders from its tax earnings and profits. To obtain and maintain the Fund's RIC tax treatment, the Fund must meet certain source-of-income and asset diversification requirements as well as distribute at least 90% of its investment company taxable income in respect of each taxable year to the holders of its Shares.

**Results of Operations** 

On October 1, 2024, we held our first closing as a private fund. The initial closing included 6 investors, committing a total of $273 million, including $3 million from an affiliate of the Adviser. A subsequent closing for 4 investors, committing an aggregate of $101 million, including $1 million from an affiliate of the Adviser, was held on October 3, 2024. We held our final closing as a private fund on February 24, 2025, with 10 investors in such closing committing an aggregate of $194 million, including $2 million from an affiliate of the Adviser, bringing the aggregate commitments in the private fund to $568 million, including $6 million from an affiliate of the Adviser. Operating results for the three-month period ended March 31, 2025 and the period from October 10, 2024 (commencement of operations) to December 31, 2024 was as follows (dollar amounts in millions):

---

| | | |
|:---|:---|:---|
|  | **Three-Month<br>Period Ended<br>March 31, 2025** | **Period Ended<br>December 31, 2024** |
|  Total investment income | $15745632 | $15148231 |
|  Net expenses | (6507728) | (5286045) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income | $9237904 | $9862186 |
|  Net unrealized appreciation (depreciation) | (3745683) | 4942932 |
|  Net realized gain (loss) | 853370 | (795832) |
|  Net increase (decrease) in net assets resulting from operation | $6345591 | $14009286 |

---

\* Totals may not foot due to rounding 

Net increase (decrease) in net assets resulting from operations can vary from period to period as a result of various factors, including acquisitions, the level of new investment commitments, the recognition of realized gains and losses and changes in unrealized appreciation and depreciation on the investment portfolio. As a result, comparisons may not be meaningful.

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***Investment Income***

Investment income, was as follows (dollar amounts in millions):

---

| | | |
|:---|:---|:---|
|  | **Three-Month<br>Period Ended<br>March 31,<br>2025** | **Period Ended<br>December 31, 2024** |
|  Investment income | $15745632 | $15148231 |
|  Interest income | $14873408 | $14709736 |
|  Dividend income | $307856 |  |
|  PIK interest income | $564368 | $222671 |
|  Other income |  | $215824 |

---

\* Totals may not foot due to rounding 

For the three-month period ended March 31, 2025 and the period from October 10, 2024 (commencement of operations) to December 31, 2024, total investment income was $15,745,632 and $15,148,231, respectively, driven by our initial deployment of capital. The size of our investment portfolio at fair value was $598,218,372 at March 31, 2025 and $650,974,766 at December 31, 2024, and the weighted average yield on the debt and income producing portfolio at fair value was 9.85% and 10.11%, respectively.

***Expenses***

Expenses were as follows (dollar amounts in millions):

---

| | | |
|:---|:---|:---|
|  | **Three-Month<br>Period Ended<br>March 31, 2025** | **Period Ended**<br>**December 31, 2024** |
|  Management Fees | $1068966 | $1413314 |
|  Incentive Fees |  |  |
|  Service Fees |  |  |
|  Interest and other debt expenses | $5874038 | $3586357 |
|  Organization costs |  | $1571831 |
|  Offering costs |  |  |
|  Directors' fees |  |  |
|  Shareholder servicing fees |  |  |
|  Administrative service expenses | $169441 | $151360 |
|  Other general and administrative expenses | $309126 | $1073495 |
|  Total expenses | $7421571 | $7796357 |
|  Management Fees and Incentive Fees waived | $(913843) | (477471) |
|  Expense support |  | (2032841) |
|  Net Expenses | $6507728 | $5286045 |

---

\* Totals may not foot due to rounding 

For the three-month period ended March 31, 2025 and the period from October 10, 2024 (commencement of operations) to December 31, 2024, net expenses were $6,507,728 and $5,286,045, respectively, primarily attributable to interest and other debt expenses. For the three-month period ended March 31, 2025 and the year ended December 31, 2024, interest and other debt expenses was driven by $332,742,475 and $285,820,654 of average borrowings, respectively, at a total annualized cost of debt of 6.49% and 6.79%, respectively. For the three-month period ended March 31, 2025 and the period from October 10, 2024 (commencement of operations) to December 31, 2024, we accrued gross base management fees before waivers of $1,068,966 and $1,413,314, respectively. Offsetting those fees, we recognized base management fee waivers of $913,843 and $477,471, respectively.

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***Net Realized Gain (Loss)***

Net realized gain (loss) was comprised of the following (dollar amounts in millions):

---

| | | |
|:---|:---|:---|
|  | **Three-Month<br>Period Ended<br>March 31, 2025** | **Period Ended<br>December 31, 2024** |
|  Non-controlled/non-affiliated investments | 856495 | (792735) |
|  Foreign currency transactions | (3125) | (3097) |
|  Net realized gains (losses) | 853370 | (795832) |

---

\* Totals may not foot due to rounding 

For the three-month period ended March 31, 2025 and the period from October 10, 2024 (commencement of operations) to December 31, 2024, we recognized gross realized gains of $869,528 and $14,285, respectively, and gross realized (losses) of $(16,518) and $(810,117), respectively, resulting in net realized gain (loss) of $853,370 and $(795,832), respectively.

***Net Unrealized Gain (Loss)***

Net unrealized gain (loss) was comprised of the following (dollar amounts in millions):

---

| | | |
|:---|:---|:---|
|  | **Three-Month<br>Period Ended<br>March 31, 2025** | **Period Ended<br>December 31, 2024** |
|  Non-controlled/non-affiliated investments | (3745691) | 4943111 |
|  Foreign currency forward contracts |  |  |
|  Foreign currency transactions | 8 | (179) |
|  Net realized gains (losses) | (3745683) | 4942932 |

---

\* Totals may not foot due to rounding 

For the three-month period ended March 31, 2025 and the period from October 10, 2024 (commencement of operations) to December 31, 2024, we recognized $3,864,023 and $12,162,745 gross unrealized gains on investments, respectively, and gross unrealized losses on investments of $(7,609,706) and $(7,219,813), respectively, including the impact of transferring unrealized to realized gains (losses), resulting in net change in unrealized gain (loss) of $(3,745,683) and $4,942,932, respectively.

***Related Parties***

See "*Item 7. Certain Relationships And Related Transactions, And Director Independence*" for a description of certain transactions and relationships with related parties.

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| | |
|:---|:---|
| **ITEM 3.** | **Properties.**  |

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Our headquarters are located at 320 Park Avenue, New York, NY 10022 and are provided by the Administrator in accordance with the terms of our Administration Agreement. We believe that our office facilities are suitable and adequate for our business as it is contemplated to be conducted.

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| | |
|:---|:---|
| **ITEM 4.** | **Security Ownership Of Certain Beneficial Owners And Management**  |

---

As of June 12, 2025, following the Conversion, there were 14,987,189.75 Common Shares outstanding and as of June 10, 2025, the aggregate NAV of all Common Shares outstanding was $343,519,042. The following table sets forth information with respect to the expected beneficial ownership of our Common Shares as of the date of this Registration Statement, by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each person known to us to be expected to beneficially own more than 5% of the outstanding shares of our Common
Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each of our Directors and executive officers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all of our Directors and executive officers as a group.

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. There are no Shares subject to options that are currently exercisable or exercisable within 60 days of the date of this Registration Statement.

---

| | | |
|:---|:---|:---|
| **Name and address** | **Shares Beneficially Owned** | **Shares Beneficially Owned** |
|  | **Number** | **Percentage** |
|  **Interested Directors<sup>(1)</sup>** |  |  |
|  Kevin Magid |  |  |
|  Rahman Vahabzadeh |  |  |
|  Steven Ruby |  |  |
|  **Independent Directors<sup>(1)</sup>** |  |  |
|  Daryl B. Brown |  |  |
|  Patrick H. Dowling. |  |  |
|  David G. Moyer |  |  |
|  Joseph F. Nemia |  |  |
|  **Executive Officers who are not Directors<sup>(1)</sup>** |  |  |
|  Michael Rettagliata |  |  |
|  Jason Scoffield |  |  |
|  Grant Bokerman |  |  |
|  **Other** |  |  |
|  Audax Institutional Feeder, LP<sup>(2)</sup> | 4917043.14 | 32.81% |
|  ALPS Private Credit I<sup>(3)</sup> | 1281056.51 | 8.55% |
|  State of Wisconsin Investment Board<sup>(4)</sup> | 1281056.51 | 8.55% |
|  Migdal Sal Pension—Private Debt Investments<sup>(5)</sup> | 3234896.78 | 21.58% |
|  State Teachers Retirement System of Ohio<sup>(6)</sup> | 1921584.77 | 12.82% |
|  **All officers and Directors as a group (10 persons)** |  |  |

---

\* Represents less than 1%. 

(1) The address for each Director and executive officer is c/o Audax PDB Management Company, LLC, 320 Park Avenue,
New York, NY 10022.

(2) The address for Audax Institutional Feeder, LP is 6A, route de Trèves, 2633 Senningerberg, Luxembourg.

(3) The address for ALPS Private Credit I is Unit 602, 6<sup>th</sup>
Floor, 100 Queen's Road, Central, Hong Kong.

(4) The address for State of Wisconsin Investment Board is 4703 Madison Yards Way, Suite 700, Madison, WI 53705.

(5) The address for Migdal Sal Pension – Private Debt Instruments is Efal 4 Petach Tikva 4951104, Israel.

(6) The address for State Teachers Retirement System of Ohio is 275 East Broad Street, Columbus, OH 43215.

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|:---|:---|
| **ITEM 5.** | **Directors And Executive Officers**  |

---

The Fund's business and affairs are managed under the direction of the Board. The responsibilities of the Board include, among other things, the oversight of our investment activities, oversight of the Valuation Designee's monthly or quarterly valuation of our assets, as applicable, and oversight of our financing arrangements and corporate governance activities. Our Board consists of seven members, four of whom are not "interested persons" of the Fund or of the Adviser as defined in Section 2(a)(19) of the Investment Company Act and are "independent," as determined by the Board. These individuals are referred to as "Independent Directors." With respect to interested Directors that are employed by the Adviser or one of its affiliates, such Directors shall automatically be deemed removed as a Director of the Fund simultaneously with the cessation of such Director's employment with the Adviser or its affiliate (for any reason, including termination with or without cause). Our Board elects the Fund's executive officers, who serve at the discretion of the Board.

**Board of Directors and Executive Officers** 

***Directors***

Information regarding the Board is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Position** | **Director Since** |
|  **Interested Director:** |  |  |  |
|  Kevin Magid | 61 | Director; Chairperson; Chief Executive Officer | 2025 |
|  Rahman Vahabzadeh | 51 | Director | 2025 |
|  Steven Ruby | 49 | Director | 2025 |
|  **Independent Director:** |  |  |  |
|  Daryl B. Brown | 59 | Director | 2025 |
|  Patrick H. Dowling | 68 | Director | 2025 |
|  David G. Moyer | 64 | Director | 2025 |
|  Joseph F. Nemia | 64 | Director | 2025 |

---

Each director will hold office until his or her death, resignation, removal or disqualification. The address for each of our directors is c/o Audax Private Credit Fund, LLC, 320 Park Avenue, 19<sup>th</sup> Floor, New York, New York 10022.

***Executive Officers***

Information regarding the executive officers of the Fund that are not Directors is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Age** | **Age** | **Position** |
|  Michael Rettagliata |  | 43 | Chief Financial Officer |
|  Jason Scoffield |  | 47 | Chief Compliance Officer |
|  Grant Bokerman |  | 40 | Secretary |

---

Each officer holds office at the pleasure of the Board until the next election of officers or until his or her successor is duly elected and qualifies.

**Biographical Information** 

***Directors***

Our directors have been divided into two groups – interested directors and Independent Directors. An interested director is an "interested person" as defined in Section 2(a)(19) of the Investment Company Act. An Independent Director is a director who is not an "interested person."

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***Interested Directors***

**Kevin P. Magid**. Mr. Magid joined our Board, effective April 2025, and acts as its Chairperson. Mr. Magid also serves as a Director for Audax Credit BDC. Mr. Magid founded and has led Audax Private Debt since its inception in 2000 and is responsible for overseeing all aspects of the Audax Private Debt business. Mr. Magid is also a member of the Investment Committee. Previously, Mr. Magid spent over 13 years as a leveraged finance professional and served as a Managing Director in the Leveraged Finance/Merchant Banking Group of CIBC World Markets Corp. Mr. Magid started his career at Drexel Burnham Lambert, and also worked at Wasserstein Perella and Kidder Peabody, principally in a leveraged finance role. Mr. Magid received an M.B.A. from the Wharton School of the University of Pennsylvania and a B.A. in Economics from Tufts University.

**Steven Ruby**. Mr. Ruby joined our Board, effective April 2025. Mr. Ruby joined Audax Group in 2003 as one of the early members of the Audax Private Debt investment team. Mr. Ruby is presently the Co-Head of Originated Debt at Audax Private Debt, overseeing the unitranche and junior debt investment teams. Mr. Ruby is responsible for originating and executing new investments and monitoring portfolio companies. Mr. Ruby is also a member of the Investment Committee. Previously, Mr. Ruby was at Greenwich Street Capital (GSC) Partners. While at GSC Partners, Mr. Ruby focused on investing in distressed securities, high yield bonds and leveraged loans. Prior to GSC Partners, he was at DLJ Investment Partners, where he worked on mezzanine investments, and he started his career at Donaldson, Lufkin & Jenrette, Inc. Mr. Ruby received an Honors in Business Administration from the Richard Ivey School of Business and a B.A. from the University of Western Ontario.

**Rahman Vahabzadeh**. Mr. Vahabzadeh joined our Board, effective April 2025. Mr. Vahabzadeh joined Audax Group in 2001 as one of the early members of the Audax Private Debt investment team. Mr. Vahabzadeh is presently the Co-Head of Originated Debt at Audax Private Debt, overseeing the unitranche and junior debt investment teams. Mr. Vahabzadeh is responsible for originating and executing new investments and monitoring portfolio companies. Mr. Vahabzadeh is also a member of the Investment Committee. Prior to joining Audax, Mr. Vahabzadeh was at TCW/Crescent Mezzanine where he focused on identifying, evaluating and investing in mezzanine opportunities and monitoring portfolio companies. Mr. Vahabzadeh began his career in the Global Energy Group of Salomon Brothers, and also worked in the Private Equity Group of Merrill Lynch & Co. Mr. Vahabzadeh received a B.A. from Princeton University.

***Independent Directors***

**Daryl B. Brown.** Mr. Brown joined our Board, effective April 2025. Mr. Brown has 27 years of experience in the finance industry. Mr. Brown currently serves as a Venture Partner at Taurus Private Markets, LLC, and is responsible for sourcing and performing due diligence on new investment opportunities as well as portfolio monitoring. Mr. Brown began his private equity career in 2001. Prior to joining Taurus Private Markets in February 2025, Mr. Brown was a Director and Portfolio Manager in the Private Markets Group at DuPont Capital Management where he was responsible for sourcing investment opportunities, making partnership investments (both primary and secondary) and co-investments, monitoring existing investments, raising capital from prospective investors, investor relations, and managing the Investment Analyst program. Prior to joining the Private Markets Group at DuPont Capital Management, Mr. Brown served as a Stable Value and Retirement Savings Plan Analyst from 1996 to 2001 providing investment and educational support for the options in the DuPont Retirement Savings Plan. Prior to joining DuPont Capital Management, Mr. Brown was an Associate Actuary in DuPont's Finance Division where he provided valuation support of the pension liabilities in the DuPont pension plans. Mr. Brown served in that role from 1991 to 1996. Mr. Brown has chaired the Investment Advisory Committee since 2014 and previously served as the Vice Chair of the Stewardship & Finance Commission at Bethel AME Church Wilmington, DE. Mr. Brown has served as a trustee for the Pension Board of New Castle County (Delaware) Employees' Plan since 2016. Mr. Brown is a CFA charterholder and holds a B. S. in Mathematics from the University of Texas and a MBA from the University of Delaware.

**Patrick H. Dowling.** Mr. Dowling joined our Board, effective April 2025. Mr. Dowling has over 40 years of experience in the finance industry. Mr. Dowling also serves as a Director for Audax Credit BDC. Since 2014,

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Mr. Dowling has served as Senior Managing Director of Seabury Capital Management LLC, and the Chier Compliance Officer for Seabury Securities LLC, focusing on the Aviation, Aerospace & Defense industries for the Investment Banking and Merchant Banking groups. Mr. Dowling was formerly a partner with Massif Partners LP ("Massif Partners") from 2010-2014, where he was the Chief Investment Officer of Massif Partners Private Debt. Prior to Massif Partners, Mr. Dowling was a Senior Managing Director & Group Head of Aerospace & Defense at Tygris Commercial Finance Group ("Tygris"), where he was also a corporate officer and founder from 2008-2010. Previously, he was Managing Director & General Manager of CIT Leveraged Finance Transportation from 2005-2008, where he was responsible for providing global solutions to manufacturers, suppliers and service providers seeking debt, leasing and structured financings, and served as a member of CIT Group Inc.'s Management Committee. Mr. Dowling was at GE Capital's Commercial Finance group from 1984-2005, where he served as Managing Director & Industry Leader – Aerospace & Defense. Mr. Dowling was member of the board of directors for Airlink and now serves as an Ambassador, the board of directors for the USO of Metropolitan New York, serves on several U.S. Chamber of Commerce Committees and was formerly the Chaiman of the Miss Kate Foundation, the board of directors f member or the Institute for Defense & Business Foundation and board of directors member for Penske Truck Leasing. Mr. Dowling received a J.D. from Pace University School of Law and a B.S. in Accounting from Fordham University and as well is a Certified Public Accountant and holds is FINRA Series 7 and 24 qualified.

**David G. Moyer.** Mr. Moyer joined our Board, effective April 2025. Mr. Moyer has over 30 years of corporate finance experience. Mr. Moyer also serves as a Director for Audax Credit BDC. Since March 2003, Mr. Moyer has served as President of Principal Advisors Group, LLC and as Senior Managing Director of CEA Atlantic Advisors, LLC, the FINRA registered broker dealer of Communications Equity Associates ("CEA Group"). In March 2003, Mr. Moyer (through Principal Advisors Group, LLC) and CEA Group formed a joint venture, CEA Principal Advisors Group, focused on raising private equity and debt capital and providing M&A and strategic financial advice to early stage and middle market public and private companies. Mr. Moyer served as Managing Director, Office of the Chairman, for CEA Group from 1998 to 2003. Prior to CEA Group, Mr. Moyer was EVP and Partner of Solomon Broadcasting International, L.P. from 1996-1998. From 1981 to 1996, Mr. Moyer held various positions throughout General Electric Company and GE Capital including Senior Vice President of GE Capital Equity Capital Group, Inc. and Senior Vice President/Team Leader of the Merchant Banking/Leveraged Lending Division of GE Capital Corporate Finance Group, Inc., where he specialized in domestic and international media and communications corporate finance and executed senior, mezzanine and equity financing commitments for leveraged buyouts, restructurings, recapitalizations and growth equity investments in the United States, Canada, Europe, and Latin America. Mr. Moyer received an M.B.A. from Harvard Business School and a B.A. in Economics from Syracuse University. Mr. Moyer is a FINRA registered securities principal and a graduate of the GE Financial Management Program.

**Joseph F. Nemia.** Mr. Nemia joined our Board, effective April 2025. Mr. Nemia has over 30 years of experience in corporate finance. Mr. Nemia also serves as a Director for Audax Credit BDC. Mr. Nemia joined TD Bank, N.A. in 2011 as head of their Asset-Based Lending group. Prior to that, Mr. Nemia was at RBS Citizens Financial Group ("RBS") from 2008-2010, where he served as President of RBS Commercial Finance and managed their asset-based finance business lines. Prior to RBS, Mr. Nemia was at CIT Group Inc. from 2006-2008, where he served as President of CIT Commercial and Industrial. Mr. Nemia was a founding member of GE Capital's Commercial Finance group, where he served from 1992-2006, and was instrumental in the middle market build out of their asset-based lending segment. Mr. Nemia began his career at The Chase Manhattan Bank, N.A. in 1981 and also worked at The Connecticut Bank and Trust Company, N.A. and The Bank of New York Company, N.A. Mr. Nemia is a trustee of National Jewish Health and Research Center and is on the Board of Trustees of Loyola School in New York City and a member of Loyola School's Finance and Audit Committees. He was also a past chairman of the Commercial Finance Association. Mr. Nemia received an M.B.A. in Finance and a B.B.A. in Accounting from Pace University.

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***Executive Officers Who Are Not Directors***

**Michael Rettagliata,** Chief Financial Officer. Mr. Rettagliata was elected the Chief Financial Officer of the Fund, effective April 2025. Mr. Rettagliata joined Audax Group in 2017. Previously, Mr. Rettagliata was a Vice President on the Real Estate Debt Strategies (BREDS) team at The Blackstone Group. He also previously worked as a Senior Accountant at Deloitte Consulting. Mr. Rettagliata received a BS in Accounting from Quinnipiac University.

**Jason Scoffield,** Chief Compliance Officer. Mr. Scoffield was elected the Chief Compliance Officer of the Fund, effective April 2025. Mr. Scoffield joined Audax Group in 2015. Previously, Mr. Scoffield was Counsel at Morgan, Lewis & Bockius LLP and Bingham McCutchen LLP, where he advised private fund clients and other investment advisers. Mr. Scoffield received a received a J.D. from Duke University School of Law and a B.A. from Brigham Young University.

**Grant Bokerman,** Secretary. Mr. Bokerman was elected the Secretary of the Fund, effective April 2025. Mr. Bokerman joined Audax Group in 2024. Previously, Mr. Bokerman was a Managing Director at Blackstone Inc., where he supported Blackstone's credit business as legal counsel. He also previously worked as a Corporate Associate with Debevoise & Plimpton LLP in New York, with roles in the finance and mergers and acquisitions practice groups. Mr. Bokerman received a J.D. from the Ohio State University Moritz College of Law and a B.A. from the Ohio State University.

**Leadership Structure and Oversight Responsibilities** 

Our Board monitors and performs an oversight role with respect to our business and affairs, including with respect to investment practices and performance, compliance with regulatory requirements, cybersecurity and the services, expenses and performance of service providers to us. Among other things, our Board approves the appointment of our Adviser and our officers, reviews and monitors the services and activities performed by our investment adviser and our executive officers.

Our Board designates a chair to preside over the meetings of the Board and to perform other duties as may be assigned to him or her by the Board. We do not have a fixed policy as to whether the chair of the Board should be an Independent Director and believe that we should maintain the flexibility to select the chair and reorganize the leadership structure, from time to time, based on the criteria that is in our best interests and the best interests of our shareholders at such times.

Mr. Magid will serve as the chair of our Board. We believe that Mr. Magid's familiarity with our investment platform and extensive knowledge of the financial services industry qualifies him to serve as the chair of our Board.

Our Board does not currently have a designated lead Independent Director. We are aware of the potential conflicts that may arise when a non-Independent Director is chairman of the Board, but believe these potential conflicts are offset by our strong corporate governance practices. Our corporate governance practices will include regular meetings of the Independent Directors in executive session without the presence of interested directors and management, as well as the establishment of a Nominating and Corporate Governance Committee and an Audit Committee, each consisting solely of Independent Directors for the purposes of the NYSE corporate governance rules and, in the case of the Audit Committee, Rule 10A-3 under the Exchange Act. During executive sessions, the chair of the Audit Committee or his or her designee will act as presiding director. In addition, our corporate governance practices include the appointment of our Chief Compliance Officer, with whom the Independent Directors meet in executive session without the presence of interested directors and other members of management for administering our compliance policies and procedures. While certain non-management members of our Board currently participate on the boards of directors of other companies, we do not view their participation as excessive or as interfering with their duties on our Board.

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Our Board will perform its risk oversight function primarily through its committees and monitoring by our Chief Compliance Officer in accordance with its compliance policies and procedures.

As described below in more detail under "*—Board Committees—Audit Committee*," the Audit Committee will assist the Board in fulfilling its risk oversight responsibilities. The Audit Committee's risk oversight responsibilities will include overseeing our accounting and financial reporting policies and procedures, our systems of internal controls regarding finance and accounting, and audits of our financial statements. The Audit Committee will also discuss with management our major financial risk exposures and the steps management has taken to monitor and control such exposures, including our risk assessment and risk management policies.

Our Board will also perform its risk oversight responsibilities with the assistance of the Chief Compliance Officer. Our Chief Compliance Officer will prepare a written report annually discussing the adequacy and effectiveness of our compliance policies and procedures. The Chief Compliance Officer's report, which will be reviewed by the Board, will address:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the adequacy of our compliance policies and procedures and certain of our service providers since the last
report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any material changes to these policies and procedures or recommended changes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any compliance matter that has occurred about which the Board would reasonably need to know to oversee our
compliance activities and risks.

In addition, the Chief Compliance Officer will meet separately in executive session with the Independent Directors periodically, typically every quarter, but in no event less than once each year.

We believe that the Board's role in risk oversight will be effective and appropriate given the extensive regulation to which we are already subject to as a BDC. Specifically, as a BDC, we must comply with numerous regulatory requirements that control the levels of risk in its business and operations, including limitations under the Investment Company Act on the amount of borrowings, debt securities or preferred stock we may incur or issue. In addition, we generally have to invest at least 70% of our total assets in "qualifying assets" and, subject to certain exceptions, we generally are not permitted to invest in any portfolio company in which our affiliates currently has an investment. In addition, we intend to elect to be treated as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). As a RIC, we must, among other things, meet certain source of income, asset diversification and distribution requirements.

Further, we believe that the Board's structure and practices will enhance its risk oversight because our Independent Directors separately meet in executive sessions with the Chief Compliance Officer and independent registered public accounting firm without any conflict that could be perceived to discourage critical review.

We believe that the Board's role in risk oversight must be evaluated on a case-by-case basis and that its existing role in risk oversight is appropriate.

***Communications with Directors***

Our Board has established procedures whereby our shareholders and other interested parties may communicate with any member of our Board, the chairman of any of our Board committees or with our non-management directors as a group by mail addressed to the applicable directors or directors group, in the care of the General Counsel and Chief Compliance Officer, Jason Scoffield, Audax PBD Management Company, LLC, 320 Park Avenue, 19<sup>th</sup> Floor, New York, New York 10022. Such communications should specify the intended recipient or recipients. All such communications, other than unsolicited commercial solicitations, will be forwarded to the appropriate director, or directors, for review.

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In addition, information on how to report issues related to financial statement disclosures, accounting, internal accounting controls or auditing matters to our Board or the Independent Directors via email is available upon request.

***Board Committees***

We currently have two standing committees: the Audit Committee and the Nominating and Corporate Governance Committee. We do not have a compensation committee because our executive officers do not receive any direct compensation from us. Under the LLC Agreement, the Fund is not required to hold annual meetings.

***Audit Committee***

The Audit Committee will operate pursuant to a charter approved by our Board. The charter sets forth the responsibilities of the Audit Committee. The primary function of the Audit Committee is to serve as an independent and objective party to assist the Board in selecting, engaging and discharging our independent accountants, reviewing the arrangements for, scope and results of the audit engagement with our independent accountants, pre-approving professional services provided by our independent accountants (including compensation therefore), reviewing the independence of our independent accountants and reviewing the adequacy of our financial and accounting policies, procedures and internal accounting controls. The Audit Committee shall be comprised of the number of Independent Directors as the Board shall determine from time to time, such number not to be less than four. The Audit Committee is presently composed of four persons, including Daryl B. Brown, Patrick H. Dowling, David G. Moyer and Joseph F. Nemia, all of whom are considered independent for purposes of the Investment Company Act. Joseph F. Nemia serves as the chair of the Audit Committee. Our Board has determined that Joseph F. Nemia qualifies as an "audit committee financial expert" as defined in Item 407 of Regulation S-K under the Exchange Act. Each of the members of the Audit Committee meet the independence requirements of Rule 10A-3 of the Exchange Act and, in addition, is not an "interested person" of the Fund or of the Adviser as defined in Section 2(a)(19) of the Investment Company Act.

***Nominating and Corporate Governance Committee***

The Nominating and Corporate Governance Committee will operate pursuant to a charter approved by our Board. The charter sets forth the responsibilities of the Nominating and Corporate Governance Committee, including making nominations for the appointment or election of Independent Directors. The Nominating and Corporate Governance Committee shall be comprised of the number of Independent Directors as the Board shall determine from time to time, such number not to be less than three. The Nominating and Corporate Governance Committee consists of four persons, including Daryl B. Brown, Patrick H. Dowling, David G. Moyer and Joseph F. Nemia, all of whom are considered independent for purposes of the Investment Company Act. David G. Moyer serves as the chair of the Nominating and Corporate Governance Committee.

The Nominating and Corporate Governance Committee will consider nominees to the Board recommended by a shareholder if such shareholder complies with the advance notice provisions of our bylaws.

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| **ITEM 6.** | **Executive Compensation**  |

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**Compensation of Directors** 

No compensation is paid to our directors who are "interested persons," as such term is defined in Section 2(a)(19) of the Investment Company Act. We pay each Independent Director as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• $85,000, with an additional $1,500 payable for each quarterly board meeting, plus $1,000 for any special
meetings; however, for Independent Directors of the Fund that are also Independent Directors of Audax Credit BDC Inc. (together with the Fund, the "Audax BDCs"), the aggregate fee payable to each such Independent Director for services to
both Audax BDCs will be $140,000, allocated between the Audax BDCs based on their respective AUMs, with the same additional fees per quarterly board meeting (for an aggregate payment of $3,000 across the Audax BDCs in each quarter) and for any
special meeting.

We are also authorized to pay the reasonable out-of-pocket expenses of each Independent Director incurred by such director in connection with the fulfillment of his or her duties as an Independent Director.

**Compensation of Executive Officers** 

We do not currently have any employees and do not expect to have any employees. Services necessary for our business are provided by individuals who are employees of our Adviser, the Administrator or its affiliates, pursuant to the terms of the Advisory Agreement and the Administration Agreement, as applicable. Our day-to-day investment operations will be managed by the Adviser. Most of the services necessary for the sourcing and administration of our investment portfolio are provided by investment professionals employed by the Adviser or its affiliates.

For the avoidance of doubt, the Fund will bear its allocable portion of the compensation, overhead (including rent, office equipment and utilities) and other expenses incurred by the Administrator in performing its administrative obligations under the Administration Agreement, including but not limited to: (i) the Fund's chief compliance officer, chief financial officer and their respective staffs; (ii) investor relations, legal, operations and other non-investment professionals at the Administrator that perform duties for the Fund; and (iii) any internal audit group personnel of the Adviser or any of its affiliates; and (c) all other expenses of the Fund's operations, administrations and transactions, The Fund will reimburse the Adviser, the Administrator or such affiliates thereof for any such amounts paid on the Company's behalf. From time to time, the Adviser or the Administrator may defer or waive fees and/or rights to be reimbursed for expenses. All of the foregoing expenses will ultimately be borne by the Fund's Shareholders. See "*Item 1. Business—Advisory Agreement*" and "*Item 7. Certain Relationships And Related Transactions, And Director Independence*."

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| **ITEM 7.** | **Certain Relationships And Related Transactions, And Director Independence**  |

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***Advisory Agreement; Administration Agreement***

We entered into the Advisory Agreement with the Adviser pursuant to which we will pay Management Fees and Incentive Fees to the Adviser and the Administration Agreement with the Administrator. In addition, pursuant to the Advisory Agreement and the Administration Agreement, we will reimburse the Adviser and Administrator for certain expenses as they occur. See "*Item 1. Business*—*Advisory Agreement*," "*—Administration Agreement and Administrative Fee"* and *"—Expense Support and Conditional Reimbursement Agreement*." Each of the Advisory Agreement and the Administration Agreement has been approved by the Board. Unless earlier terminated, each of the Advisory Agreement and the Administration Agreement will remain in effect for a period of two years from the date it first becomes effective and will remain in effect from year-to-year thereafter if approved annually by a majority of the Board, including a majority of Independent Directors, or by the holders of a majority of our outstanding voting securities and a majority of the Independent Directors.

***Expense Support Agreement***

We entered into the Expense Support Agreement with the Adviser pursuant to which the Adviser may elect to pay Expense Payments on our behalf, provided that no portion of the payment will be used to pay any interest expense or distribution and/or shareholder servicing fees of the Fund. See "*Item 1. Business—Expense Support and Conditional Reimbursement Agreement*."

***Trademark License Agreement***

We entered into the trademark license agreement (the "Trademark License Agreement") with 101 Huntington Holdings LLC (the "Licensor") pursuant to which the Licensor has agreed to grant us a non-exclusive, royalty-free license to use the name "Audax", "Audax Private Debt" and any derivative thereof (the "Licensed Marks"). Under this agreement, we have the right to use the Licensed Marks for so long as Audax PDB Management Company, LLC or one of its affiliates remains our Adviser. Other than with respect to this limited license, we will have no legal right to the Licensed Marks. This license agreement will remain in effect for so long as the Advisory Agreement with our Adviser is in effect, provided that this license agreement shall be terminable by Licensor, at any time and in its sole discretion, in the event that we or the Licensor receive notice of any third party claim arising out of our use of the Licensed Marks; by either party upon sixty (60) days' prior written notice to the other party; or by Licensor at any time in the event we assign or attempt to assign or sublicense this license agreement or any of our rights or duties hereunder without the prior written consent of the Licensor.

***Director Independence***

Pursuant to the Limited Liability Company Agreement, a majority of the Board will consist of independent directors. The Fund refers to independent directors as directors who are not "interested persons" (as defined in Section 2(a)(19) of the Investment Company Act) of the Fund or Audax Group. On an annual basis, each member of the Board is required to complete a questionnaire eliciting information to assist the Board in determining whether the Independent Directors continue to be independent under the Investment Company Act. The Board limits membership on the Audit Committee and the Nominating and Corporate Governance Committee to Independent Directors. For more information regarding the independence of our directors, see "*Item 5. Directors And Executive Officers*."

Based on the foregoing independence standard and the recommendation of the Nominating and Corporate Governance Committee, after reviewing all relevant transactions and relationships between each director, or any of his or her family members, and the Fund or Audax Group, the Board has determined that Messrs. Brown, Dowling, Moyer and Nemia qualify as Independent Directors.

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| **ITEM 8.** | **Legal Proceedings**  |

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From time to time, we may be a party to certain legal proceedings in the ordinary course of business, including proceedings relating to the enforcement of our rights under loans to or other contracts with our portfolio companies. We are not currently subject to any material legal proceedings, nor, to our knowledge, is any material legal proceeding threatened against us.

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| **ITEM 9.** | **Market Price Of And Distributions On The Registrant's Common Equity And Related Shareholder Matters**  |

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**Market Information** 

Our outstanding Shares will be offered and sold in private offerings exempt from registration under the Securities Act under Section 4(a)(2), Regulation D and Regulation S. There is no public market for our Shares currently, nor do we expect one to develop.

Because our Shares are being acquired by investors in one or more transactions "not involving a public offering," they are "restricted securities" and may be required to be held indefinitely. Our Shares may not be sold, transferred, assigned, pledged or otherwise disposed of unless they satisfy applicable eligibility and/or suitability requirements and the transfer is otherwise made in accordance with applicable securities, tax, anti-money laundering and other applicable laws and compliance with our LLC Agreement. Accordingly, an investor must be willing to bear the economic risk of investment in the Shares until we are liquidated. No sale, transfer, assignment, pledge or other disposition, whether voluntary or involuntary, of the Shares may be made except by registration of the transfer on our books. Each transferee will be required to execute an instrument agreeing to be bound by these restrictions and the other restrictions imposed on the Shares and to execute such other instruments or certifications as are reasonably required by us.

Shares will be offered for subscription on a continuous basis. Each investor in the Private Offering will purchase Shares pursuant to a Subscription Agreement.

The initial purchase price for our Shares is $25.00 per share upon our election to be regulated as a BDC. Thereafter, the purchase price per Common Share will equal our Per Share NAV as determined within 48 hours of the applicable closing date, excluding Sundays and holidays, of such sale (taking into account any investment valuation adjustments from the latest valuation date in accordance with the valuation policies and procedures of the Adviser), subject to certain exceptions.

As previously noted, prior to the Conversion, the Fund operated as a private fund exempt from registration under the Investment Company Act pursuant to Section 3(c)(7). Pursuant to subscription agreements with the private fund, investors in the private fund made Capital Commitments to purchase limited partner interests and were required to fund capital contributions to purchase limited partner interests. In addition, such subscription agreements required that, to the extent Anchor Investors had any unfunded Capital Commitments immediately prior to the Conversion, such Anchor Investors would enter into a subscription agreement with the Fund that had a similar drawdown structure. Accordingly, such Anchor Investors may have capital called alongside monthly subscriptions or intra-month during the Interim Period.

**Holders** 

The Fund's common Shareholders are entitled to one vote for each Common Share held on all matters submitted to a vote of Shareholders and do not have cumulative voting rights. Shareholders are entitled to receive proportionately any distributions declared by the Board, subject to any preferential distribution rights of outstanding Preferred Shares. The rights of common Shareholders are subject to the LLC Agreement. Please see "*Item 4. Security Ownership Of Certain Beneficial Owners And Management*" for disclosure regarding the holders of our Shares.

**Valuation of Portfolio Securities** 

The Fund will determine the NAV per share of its Shares monthly and as necessary, which will be subject to the limitations of Section 23(b) of the Investment Company Act (which generally prohibits us from selling Shares at a price below the then-current NAV of the Shares as determined within 48 hours, excluding Sundays and holidays, of such sale (taking into account any investment valuation adjustments from the latest valuation

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date in accordance with the valuation policies and procedures of the Adviser), subject to certain exceptions). The NAV will be determined based on the value of assets less liabilities, including accrued fees and expenses, as of any date of determination.

For further information on how the Fund will value its investments, see "*Item 1. Business—Investment Valuation Process*" and "*Item 2. Financial Information—Critical Accounting Policies—Investment Valuation Process*."

**Distribution Policy** 

As a BDC, we intend to elect to be treated and to qualify as a RIC for U.S. federal income tax purposes. Our status as a RIC will enable us to deduct qualifying distributions to our Shareholders, so that we will be subject to corporate-level U.S. federal income taxation only in respect of income and gains that we retain and do not distribute.

To maintain our status as a RIC, we must, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain an election under the Investment Company Act to be treated as a BDC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• derive in each taxable year at least 90% of our gross income from distributions, interest, gains from the sale or
other disposition of Shares or securities and other specified categories of investment income; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• maintain diversified holdings so that, subject to certain exceptions and cure periods, at the end of each quarter
of our taxable year:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• at least 50% of the value of our total gross assets is represented by cash and cash items, U.S. government
securities, the securities of other RICs and "other securities," provided that such "other securities" shall not include any amount of any one issuer, if our holdings of such issuer are greater in value than 5% of our total
assets or greater than 10% of the outstanding voting securities of such issuer, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• no more than 25% of the value of our assets may be invested in securities of any one issuer, the securities of
any two or more issuers that are controlled by us and are engaged in the same or similar or related trades or businesses (excluding U.S. government securities and securities of other RICs), or the securities of one or more "qualified publicly
traded partnerships."

We may earn various fees which will not be treated as qualifying income for purposes of the 90% gross income test. We may also earn other types of income that will not be treated as qualifying income for purposes of the 90% gross income test.

To maintain our status as a RIC, we must distribute (or be treated as distributing) in each taxable year dividends for tax purposes of an amount equal to at least 90% of our investment company taxable income (as that term is defined in the Code, which includes, among other items, dividends, interest, the excess of any net short-term capital gains over net long-term capital losses, as well as other taxable income, excluding any net capital gains reduced by deductible expenses) and 90% of our net tax-exempt income for that taxable year. As a RIC, we generally will not be subject to corporate-level U.S. federal income tax on our investment company taxable income and net capital gains that we distribute to Shareholders. In addition, to avoid the imposition of a nondeductible 4% U.S. federal excise tax, we must distribute (or be treated as distributing) in each calendar year an amount at least equal to the sum of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 98% of our net ordinary income, excluding certain ordinary gains and losses, recognized during a calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 98.2% of our capital gain net income, adjusted for certain ordinary gains and losses, recognized for the
twelve-month period ending on October 31 of such calendar year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• 100% of any income or gains recognized, but not distributed, in preceding years.

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While we intend to distribute income and capital gains to minimize exposure to the 4% excise tax, we may not be able to, or may choose not to, distribute amounts sufficient to avoid the imposition of the tax entirely. In that event, we will be liable for the tax only on the amount by which we do not meet the foregoing distribution requirement.

We generally expect to distribute substantially all of our earnings on a quarterly basis, but may reinvest distributions on behalf of those investors that do not elect to receive their distributions in cash. See "*Item 1. Business—Distribution Reinvestment Plan*" for a description of our distributions policy. One or more of the considerations described below, however, could result in the deferral of distributions until the end of the fiscal year.

We may make investments that are subject to tax rules that require us to include amounts in our income before we receive cash corresponding to that income or that defer or limit our ability to claim the benefit of deductions or losses. For example, if we hold securities issued with original issue discount, that original issue discount may be accrued in income before we receive any corresponding cash payments. Similarly, the terms of the debt instruments that we hold may be modified under certain circumstances. These modifications may be considered "significant modifications" for U.S. federal income tax purposes that give rise to deemed debt-for-debt exchange upon which we may recognize taxable income or gain without a corresponding receipt of cash.

In cases where our taxable income exceeds our available cash flow, we will need to fund distributions with the proceeds of sale of securities or with borrowed money, and may raise funds for this purpose opportunistically over the course of the year.

In certain circumstances (e.g., where we are required to recognize income before or without receiving cash representing such income), we may have difficulty making distributions in the amounts necessary to satisfy the requirements for maintaining RIC status and for avoiding U.S. federal income and excise taxes. Accordingly, we may have to sell investments at times we would not otherwise consider advantageous, raise additional debt or equity capital or reduce new investment originations to meet these distribution requirements. If we are not able to obtain cash from other sources, we may fail to qualify as a RIC and thereby be subject to corporate-level U.S. federal income tax.

If in any particular taxable year, we do not qualify as a RIC, all of our taxable income (including our net capital gains) will be subject to tax at regular corporate rates without any deduction for distributions to Shareholders, and distributions will be taxable to our Shareholders as ordinary dividends to the extent of our current or accumulated earnings and profits, and distributions would not be required. Subject to certain limitations under the Code, such distributions generally would be eligible (i) to be treated as "qualified dividend income" in the case of an individual and other non-corporate shareholders and (ii) for the dividends received deduction in the case of corporate shareholders. Distributions in excess of our current and accumulated earnings and profits would be treated first as a return of capital to the extent of the Shareholder's tax basis, and any remaining distributions would be treated as capital gain. If we fail to qualify as a RIC for a period greater than two consecutive taxable years, to qualify as a RIC in a subsequent year we may be subject to regular corporate tax on any net built-in gains with respect to certain of our assets (that is, the excess of the aggregate gains, including items of income, over aggregate losses that would have been realized with respect to such assets if we had sold the property at fair market value at the end of the taxable year) that we elect to recognize on requalification or when recognized over the next five years.

The Code provides certain relief from RIC disqualification due to inadvertent failures to comply with the 90% gross income test and the diversification tests described above, although there could be additional taxes due in such cases. We cannot assure you that we would qualify for any such relief should we fail the 90% gross income test or the diversification test described above.

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In the event we invest in foreign securities, we may be subject to withholding and other foreign taxes with respect to those securities. We do not expect to satisfy the conditions necessary to pass through to our Shareholders their share of the foreign taxes paid by us.

**Reports to Shareholders** 

Annual and quarterly reports, including audited financial statements filed with the SEC, will be made available to investors.

Depending on legal requirements, the Fund may provide this information to Shareholders via U.S. mail or other courier, electronic delivery, or some combination of the foregoing. Information about the Fund will also be available on the SEC's website at <u>www.sec.gov</u>.

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| **ITEM 10.** | **Recent Sales Of Unregistered Securities**  |

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On October 1, 2024, October 3, 2024, and February 24, 2025 the private fund held closings, accepting an aggregate of $568 million in Capital Commitments, including $6 million committed by an affiliate of the Adviser, in reliance upon the available exemptions from registration requirements of Section 4(a)(2) of the Securities Act, to purchase interests of the private fund. As of the date of the Conversion, the private fund had called capital in the amount of $326 million of such Capital Commitments to purchase interests of the private fund, which interests were then converted to 13,601,380.43 Shares.

Each purchaser of Shares in the Private Offering will be required to represent that it is: (i) either an "accredited investor" as defined in Rule 501 of Regulation D under the Securities Act or, in the case of Shares sold outside the United States, is not a "U.S. person" in accordance with Regulation S of the Securities Act; and (ii) is acquiring the Shares purchased by it for investment and not with a view to resale or distribution. We did not engage in general solicitation or advertising with regard to the private placement and did not offer securities to the public in connection with such issuance and sale.

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| | |
|:---|:---|
| **ITEM 11.** | **Description Of Registrant's Securities To Be Registered**  |

---

**Description of our Shares** 

***General***

Under the terms of our LLC Agreement, we are authorized to issue an unlimited number of Common Shares and Preferred Shares. There is currently no market for our Shares, and we can offer no assurances that a market for our Shares will develop in the future. We do not intend for the Shares offered to be listed on any national securities exchange. There are no outstanding options or warrants to purchase our Shares. For purposes of this section, the holders of Common Shares are defined as "Common Shareholders" and the holders of Preferred Shares are defined as "Preferred Shareholders".

***Common Shares***

Under the terms of the LLC Agreement, we retain the right to accept subscriptions for our Shares. In addition, Common Shareholders are entitled to one vote for each Common Share held on all matters submitted to a vote of Shareholders and do not have cumulative voting rights. Shareholders are entitled to receive proportionately any distributions declared by the Board, subject to any preferential distribution rights of outstanding Preferred Shares. Upon our liquidation, dissolution or winding up, the Shareholders will be entitled to receive ratably our net assets available after the payment of (or establishment of reserves for) all debts and other liabilities and will be subject to the prior rights of any outstanding preferred shares. Shareholders have no redemption, conversion or preemptive rights. The rights, preferences and privileges of Shareholders are subject to the rights of the holders of any Preferred Shares that we may designate and issue in the future.

***Preferred Shares***

The Private Offering does not include an offering of Preferred Shares. However, under the terms of the LLC Agreement, our Board is authorized to issue one class of Preferred Shares without approval of the Shareholders. Prior to the issuance of a series of Preferred shares, the Board is required by the LLC Agreement to set the terms, preferences, conversion or other rights, voting powers, restrictions, limitations as to distributions, qualifications and terms or conditions of redemption. The Investment Company Act limits our flexibility as certain rights and preferences of the Preferred Shares require, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) immediately after issuance and before any distribution is made with respect to the Shares, we must meet an
asset coverage ratio of total assets to total senior securities, which include all of our borrowings and any Preferred Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at any time when there are outstanding Preferred Shares, if any are issued, the Preferred Shareholders must be
entitled as a class to elect two directors at all times, which directors may be additional directors or existing directors designated by the Board to be elected by the Preferred Shareholders, and to elect a majority of the directors if and for so
long as distributions on the Preferred Shares are unpaid in an amount equal to two full years of distributions on the Preferred Shares.

***Transfer and Resale Restrictions***

Shareholders may transfer their Shares provided that the transferee satisfies applicable eligibility and/or suitability requirements, and the transfer is otherwise made in accordance with applicable securities, tax, anti-money laundering and other applicable laws and compliance with our LLC Agreement. No transfer will be effectuated except by registration of the transfer on the Fund's books. Each transferee must agree to be bound by the restrictions set forth in the LLC Agreement and all other obligations as an investor in the Fund.

We intend to sell our Shares in private offerings in the United States under the exemption provided by Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder, Regulation S under the Securities

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Act and other exemptions from the registration requirements of the Securities Act. Investors who acquire our Shares in such private offerings are required to complete, execute and deliver an assignment agreement, a Subscription Agreement, a joinder to our LLC Agreement and related documentation, which includes customary representations and warranties, certain covenants and restrictions and indemnification provisions.

Additionally, such investors may be required to provide due diligence information to us for compliance with certain legal requirements. We may, from time to time, engage offering or distribution agents and incur offering or distribution fees or sales commissions in connection with the private offering of our Shares in certain jurisdictions outside the United States. The cost of any such offering or distribution fees may be borne by an affiliate of the Adviser. We will not incur any such fees or commissions if our net proceeds received upon a sale of our shares after such costs would be less than the net asset value per share.

***Limited Liability of the Shareholders***

No Shareholder or former Shareholder, in its capacity as such, will be liable for any of our debts, liabilities or obligations except as provided in the LLC Agreement and to the extent otherwise required by law. Each Shareholder and former Shareholder will be required to pay to us any unpaid balance of any payments that he, she or it is expressly required to make to us pursuant to the LLC Agreement or pursuant to such Shareholder's Subscription Agreement, as the case may be.

***Redemptions by the Fund***

Shareholders have no redemption or preemptive rights.

**Delaware Law and Certain LLC Agreement Provisions** 

***Organization and Duration***

We were formed as a Delaware limited partnership on July 23, 2024, and converted to a Delaware limited liability company on April 10, 2025. We will remain in existence until we are dissolved, wound up and terminated in accordance with the LLC Agreement or pursuant to Delaware law.

***Purpose***

Under the LLC Agreement, we are permitted to engage in any business act or activity that lawfully may be conducted by a limited liability company organized under Delaware law and, in connection therewith, to exercise all of the rights and powers conferred upon it pursuant to the agreements relating to such business act or activity.

***Agreement to be Bound by the LLC Agreement; Power of Attorney***

By executing the Subscription Agreement (which signature page constitutes a counterpart signature page to the LLC Agreement), each investor accepted by the Fund is agreeing to be admitted as a member of the Fund and bound by the terms of the LLC Agreement. Pursuant to the LLC Agreement, each Common Shareholder grants to any duly authorized representative of the Fund a power of attorney to, among other things, execute and file documents required for our qualification, continuance or dissolution. The LLC Agreement also grants the Board the authority to make certain amendments to the LLC Agreement and grants duly authorized representatives a power of attorney to effect any such amendment to the LLC Agreement.

***Resignation and Removal of Directors; Procedures for Vacancies***

Any director may resign at any time by submitting his or her written resignation to the Board or secretary of the Fund. Such resignation will take effect at the time of its receipt by the Fund unless another time be fixed in

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the resignation, in which case it will become effective at the time so fixed. The acceptance of a resignation is not required to make it effective. Any or all of the directors may be removed by the affirmative vote of a majority of the full Board; provided, that any or all directors appointed by Preferred Shareholders, if any, may be removed only by the affirmative vote of Preferred Shareholders holding at least 66 2/3% of all our then-outstanding Preferred Shares.

Except as otherwise provided in the LLC Agreement or by applicable law, including the Investment Company Act, any newly created directorship on the Board that results from an increase in the number of directors, and any vacancy occurring in the Board that results from the death, resignation, retirement, disqualification or removal of a director or other cause, will be filled by the appointment and affirmative vote of a majority of the remaining directors in office, although less than a quorum (with a quorum being a majority of the total number of directors), or by a sole remaining director. Any director elected to fill a vacancy or newly created directorship will hold office until his or her death, resignation, retirement, disqualification or removal.

***Action by Shareholders***

Under the LLC Agreement, Shareholder action can be taken only at a meeting of Shareholders at which a quorum is present or by written consent in lieu of a meeting by Shareholders representing at least the number of Shares required to approve the matter in question.

Our Board, the Chair of the Board, our Chief Executive Officer or Shareholders holding a majority of the Shares entitled to vote at the meeting may call a meeting of Shareholders. Only business specified in our notice of meeting (or supplement thereto) may be conducted at a meeting of Shareholders.

***Amendment of the LLC Agreement***

Except as otherwise provided in the LLC Agreement, the terms and provisions of the LLC Agreement may be amended with the consent of the Board (which term includes any waiver, modification, or deletion of the LLC Agreement) during or after the term of the Fund, together with the prior written consent of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If no Preferred Shares have been issued and are outstanding, the consent of Common Shareholders holding a
majority of the issued and outstanding Common Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If Preferred Shares have been issued and are outstanding, (i) in the case of an amendment not affecting
the rights of Preferred Shareholders, Common Shareholders holding a majority of the issued and outstanding Common Shares, (ii) in the case of an amendment not affecting the rights of the Common Shareholders (including rights or protections with
respect to tax consequences of Common Shareholders), Preferred Shareholders holding a majority of the issued and outstanding Preferred Shares, and (iii) in case of an amendment affecting the rights (including rights or protections with respect
to tax consequences of Common Shareholders) of both the Common Shareholders and Preferred Shareholders, Common Shareholders holding a majority of the issued and outstanding Common Shares and Preferred Shareholders holding a majority of the issued
and outstanding Preferred Shares.

Notwithstanding clauses (a) or (b) above, certain limited amendments, as set forth in the LLC Agreement, may be made with the consent of the Board and without the need to seek the consent of any Common Shareholder or Preferred Shareholder.

***Merger, Sale or Other Disposition of Assets***

Subject to any restrictions of the Investment Company Act and applicable law, the Board may, without the approval of our Shareholders, cause us to, among other things, sell, exchange or otherwise dispose of all or substantially all of our assets in a single transaction or series of transactions, or approve on our behalf, the sale,

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exchange or disposition of all or substantially all of our assets. Our Board may also cause the sale of all or substantially all of our assets under a foreclosure or other realization without Shareholder approval. Shareholders are not entitled to dissenters' rights of appraisal under the LLC Agreement or applicable Delaware law in the event of a merger or consolidation, a sale of all or substantially all of our assets or any other similar transaction or event.

***Submission to Jurisdiction; Waiver of Jury Trial***

Pursuant to the LLC Agreement, each Common Shareholder accepts the non-exclusive jurisdiction of courts of the State of New York located in New York County or the U.S. District Court for the Southern District of New York located in New York County. Submission to such jurisdiction may result in litigation in a venue that a Shareholder could view as inconvenient or less favorable in the absence of such provision. Furthermore, each Shareholder, by becoming a member of the Fund and agreeing to be bound by the terms of the LLC Agreement waives its right to a trial by jury to the fullest extent permitted by law in any claim or cause of action directly or indirectly based upon or arising out of the LLC Agreement. Compliance with anti-money laundering requirements will subject the Fund and the Adviser to increased costs, regulatory obligations, and reporting burdens.

***Books and Reports***

The Fund is required to keep appropriate books of our business at our principal offices. The books will be maintained for both tax and financial reporting purposes on an accrual basis in accordance with U.S. GAAP. For financial reporting purposes, our fiscal year is a calendar year ending December 31.

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| | |
|:---|:---|
| **ITEM 12.** | **Indemnification Of Directors And Officers**  |

---

The LLC Agreement provides that, to the fullest extent permitted by applicable law, none of our officers, directors, employees or agents will be liable to us or to any shareholder for any act or omission performed or omitted by any such person (including any acts or omissions of or by another officer, director, employee or agent), in the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of the obligations and duties involved in the conduct of his or her office.

The LLC Agreement provides that, to the fullest extent permitted by law, we will indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding whether civil, criminal, administrative or investigative (other than an action by or in the right of the Fund) by reason of the fact that he or she is or was a director, officer, employee or agent of the Fund, or is or was serving at the request of the Fund as a director, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise, against expenses (including reasonable attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with such action, suit or proceeding except for expenses, judgments, fines and amounts incurred by reason of such person's willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office.

In addition, to the fullest extent permitted by law, we will indemnify any person who was or is a party, or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Fund to procure a judgment in its favor by reason of the fact that he or she is or was a director, officer, employee or agent of the Fund, or is or was serving at the request of the Fund as a director, officer, employee or agent of another company, partnership, joint venture, trust or other enterprise against expenses (including reasonable attorneys' fees) actually and reasonably incurred by him or her in connection with the defense or settlement of such action or suit except for expenses incurred by reason of such person's willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office and except that no indemnification will be made in respect of any claim, issue or matter by or in the right of the Fund as to which such person shall have been adjudged to be liable to the Company unless and only to the extent that the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which such court shall deem proper.

Under the indemnification provision of the LLC Agreement, to the fullest extent permitted by law, expenses (including reasonable attorneys' fees) incurred by an officer, director, employee or agent of the Fund in defending any civil, criminal, administrative or investigative action, suit or proceeding may be paid by the Fund in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such director, officer, employee or agent of the Fund to repay such amount if it is ultimately determined that he or she is not entitled to be indemnified by the Fund pursuant to the provisions of the LLC Agreement.

So long as we are regulated under the Investment Company Act, the above indemnification and limitation of liability is limited by the Investment Company Act or by any valid rule, regulation or order of the SEC thereunder. The Investment Company Act provides, among other things, that a company may not indemnify any director or officer against liability to it or its security holders to which he or she might otherwise be subject by reason of his or her willful misfeasance, bad faith, gross negligence or reckless disregard of the obligations and duties involved in the conduct of his or her office unless a determination is made by final decision of a court, by vote of a majority of a quorum of directors who are disinterested, non-party directors or by independent legal counsel that the liability for which indemnification is sought did not arise out of the foregoing conduct. In addition, we have obtained liability insurance for our officers and directors.

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| | |
|:---|:---|
| **ITEM 13.** | **Financial Statements And Supplementary Data**  |

---

Set forth below is an index to our financial statements attached to this Registration Statement.

**Index to Consolidated Financial Statements** 

---

| | |
|:---|:---|
|  **Consolidated Financial Statements** |  |
|  [Consolidated Statement of Assets, Liabilities and Partners' Capital as of March 31, 2025 (Unaudited) and December 31, 2024](#tx948530_501) | F-2 |
|  [Consolidated Statement of Operations for the three months ended March 31, 2025 (Unaudited)](#tx948530_502) | F-3 |
|  [Consolidated Statement of Changes in Partners' Capital for the three months ended March 31, 2025 (Unaudited)](#tx948530_503) | F-4 |
|  [Consolidated Statement of Cash Flows for the three months ended March 31, 2025 (Unaudited)](#tx948530_504) | F-5 |
|  [Consolidated Schedule of Investments as of March 31, 2025 (Unaudited) and December 31, 2024](#tx948530_505) | F-6 |
|  [Notes to Consolidated Financial Statements (Unaudited)](#tx948530_506) | F-28 |
|  **Audited Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin948530_1) | F-47 |
|  [Consolidated Statement of Assets, Liabilities and Partners' Capital as of December 31, 2024](#fin948530_2) | F-48 |
|  [Consolidated Statement of Operations for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024](#fin948530_3) | F-49 |
|  [Consolidated Statement of Changes in Partners' Capital for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024](#fin948530_4) | F-50 |
|  [Consolidated Statement of Cash Flows for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024](#fin948530_5) | F-51 |
|  [Consolidated Schedule of Investments as of December 31, 2024](#fin948530_6) | F-52 |
|  [Notes to Consolidated Financial Statements](#fin948530_7) | F-63 |

---

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| | |
|:---|:---|
| **ITEM 14.** | **Changes In And Disagreements With Accountants On Accounting And Financial Disclosure**  |

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There are not and have not been any disagreements between us and our accountant on any matter of accounting principles, practices, or financial statement disclosure.

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| | |
|:---|:---|
| **ITEM 15.** | **Financial Statements And Exhibits**  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) List separately all financial statements filed

The financial statements attached to this Registration Statement are listed under "*Item 13. Financial Statements And Supplementary Data*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Exhibits

**Exhibit Index** 

---

| | |
|:---|:---|
| 3.1 | [Certificate of Conversion\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex31.htm) |
| 3.2 | [Certificate of Formation\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex32.htm) |
| 3.3 | [Limited Liability Company Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex33.htm) |
| 4.1 | [Form of Subscription Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex41.htm) |
| 10.1 | [Advisory Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex101.htm) |
| 10.2 | [Administration Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex102.htm) |
| 10.3 | [Trademark License Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex103.htm) |
| 10.4 | [Distribution Reinvestment Plan\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex104.htm) |
| 10.5 | [Expense Support Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex105.htm) |
| 10.6 | [Transfer Agency Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex106.htm) |
| 10.7 | [Custodian Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex107.htm) |
| 10.8 | [Form of Funds of Funds Agreement\*](http://www.sec.gov/Archives/edgar/data/0002033362/000119312525091212/d948530dex108.htm) |
| 10.9 | [Loan and Servicing Agreement\*\*](d948530dex109.htm) |
| 21.1 | [List of Subsidiaries\*\*](d948530dex211.htm) |

---

(\*) Incorporated by reference to the Fund's registration statement on Form 10 (File No. 000-56739), filed on April 23, 2025.

(\*\*) Filed herewith

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**SIGNATURES** 

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
| **AUDAX PRIVATE CREDIT FUND, LLC** | **AUDAX PRIVATE CREDIT FUND, LLC** |
| By: | /s/ Grant Bokerman |
|  | Name: Grant Bokerman |
|  | Title: Secretary |

---

Date: June 17, 2025

*[Signature Page to Form 10]* 

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##### [**Table of Contents**](#toc)
**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS** 

**Audax Private Credit Fund, LP** 

---

| | |
|:---|:---|
|  **Consolidated Financial Statements** |  |
|  [Consolidated Statement of Assets, Liabilities and Partners' Capital as of March 31, 2025 (Unaudited) and December 31, 2024](#tx948530_501) | F-2 |
|  [Consolidated Statement of Operations for the three months ended March 31, 2025 (Unaudited)](#tx948530_502) | F-3 |
|  [Consolidated Statement of Changes in Partners' Capital for the three months ended March 31, 2025 (Unaudited)](#tx948530_503) | F-4 |
|  [Consolidated Statement of Cash Flows for the three months ended March 31, 2025 (Unaudited)](#tx948530_504) | F-5 |
|  [Consolidated Schedule of Investments as of March 31, 2025 (Unaudited) and December 31, 2024](#tx948530_505) | F-6 |
|  [Notes to Consolidated Financial Statements (Unaudited)](#tx948530_506) | F-28 |
|  **Audited Financial Statements** |  |
|  [Report of Independent Registered Public Accounting Firm](#fin948530_1) | F-47 |
|  [Consolidated Statement of Assets, Liabilities and Partners' Capital as of December 31, 2024](#fin948530_2) | F-48 |
|  [Consolidated Statement of Operations for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024](#fin948530_3) | F-49 |
|  [Consolidated Statement of Changes in Partners' Capital for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024](#fin948530_4) | F-50 |
|  [Consolidated Statement of Cash Flows for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024](#fin948530_5) | F-51 |
|  [Consolidated Schedule of Investments as of December 31, 2024](#fin948530_6) | F-52 |
|  [Notes to Consolidated Financial Statements](#fin948530_7) | F-63 |

---

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Assets, Liabilities and Partners' Capital** 

**March 31, 2025 and December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025<br>(unaudited)** | **December 31, 2024** |
|  **Assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at fair value: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliated investments (cost of $597,020,952 and $646,031,655, respectively) | $598218372 | $650974766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 76317923 | 31592264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest receivable | 3348898 | 2399856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from Management Company | 398305 | 398305 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from affiliates |  | 306938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from Limited Partners | 618951 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable for loan repayment | 56650 | 181269 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Escrow receivable | 48338 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $679007437 | $685853398 |
|  **Liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings under leverage facility, net | $323917475 | $340592475 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 8955802 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable | 5749038 | 3503024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to Management Company | 324565 | 1087203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liability | 618951 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | 338676 | 190492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable for investments purchased |  | 186020 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 339904507 | 345559214 |
|  Commitments and Contingencies (Note 7) |  |  |
|  **Partners' Capital** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General Partner | 4427276 | 4521350 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited Partners | 334675654 | 335772834 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total partners' capital** | 339102930 | 340294184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and partners' capital** | $679007437 | $685853398 |

---

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

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Operations** 

**For the three months ended March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | |
|:---|:---|
|  **Investment income** |  |
|  **Non-controlled/non-affiliated investments:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | $15437776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividend income | 307856 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 15745632 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense and credit facility fees | 5749038 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1068966 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 169441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 126911 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 125000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment expenses | 13538 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 168677 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 7421571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fee waiver | (913843) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 6507728 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net investment income** | 9237904 |
|  **Realized and unrealized gains (losses) on investments** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) : |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliated investments: | 856495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain | 856495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized appreciation (depreciation) : |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliated investments | (3745691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized depreciation | (3745691) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized loss on investments | (2889196) |
|  **Realized and unrealized gains (losses) on foreign currency:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized loss on foreign currency | (3125) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized gain on foreign currency | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized loss on foreign currency | (3117) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in partners' capital resulting from operations | $6345591 |

---

The Partnership commenced operations on October 10, 2024, thus there is no Consolidated Statement of Operations presented for the three months ended March 31, 2024.

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Changes in Partners' Capital** 

**For the three months ended March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **General**<br>**Partner** | **Limited**<br>**Partners** | **Total**<br>**Partners'**<br>**Capital** |
|  **Balance, December 31, 2024** | $4521350 | $335772834 | $340294184 |
|  Distributions | (83096) | (7453749) | (7536845) |
|  Net investment income | 95625 | 9142279 | 9237904 |
|  Net realized gains | 8534 | 844836 | 853370 |
|  Net change in unrealized depreciation | (37457) | (3708226) | (3745683) |
|  Performance incentive allocation | (77680) | 77680 |  |
|  **Balance, March 31, 2025** | $**4427276** | $**334675654** | $**339102930** |

---

The Partnership commenced operations on October 10, 2024, thus there is no Consolidated Statement of Change in Partners' Capital presented for the three months ended March 31, 2024.

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Cash Flows** 

**For the three months ended March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | |
|:---|:---|
|  **Cash flows from operating activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in partners' capital resulting from operations | $6345591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net increase in partners' capital resulting from operations provided by operating activities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain | (856495) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized depreciation | 3745691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash interest income, including payment in-kind and original issue discount accretion | (746608) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of financing costs | 125000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in interest receivable | (949042) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in receivable from Limited Partners | (618951) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in receivable from affiliates | 306938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in receivable for loan repayment | 124619 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in escrow receivable | (48338) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in interest payable | 2246014 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in payable to Management Company | (762638) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in deferred tax liability | 618951 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in accounts payable and accrued expenses | 148184 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in payable for investments purchased | (186020) |
|  Investment Activity: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of investments | (13196657) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings on revolving credit facilities | (12662909) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposition and repayments of investments | 60476670 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments on revolving credit facilities | 15996702 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Investment Activity | 50613806 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 60106702 |
|  **Cash flows from financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from capital contributions |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capital called | 104391083 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital called | (104391083) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Distributions to Partners |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General Partner | (83096) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited Partners | (7453749) |
|  | (7536845) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments for leverage facility | (16800000) |
|  | (16800000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term borrowings | 8955802 |
|  | 8955802 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used for financing activities | (15381043) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in cash and cash equivalents | 44725659 |
|  **Cash and cash equivalents:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents, beginning of period | 31592264 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents, end of period | $76317923 |
|  **Supplemental non-cash information:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment-in-kind ("PIK") interest income | $564368 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest paid pursuant to the leverage facility | $3325144 |

---

The Partnership commenced operations on October 10, 2024, thus there is no Consolidated Statement of Cash Flows presented for the three months ended March 31, 2024.

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment**<br> **Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Aerospace & Defense* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blue Raven Solutions | (g) | Sr. Secured First Lien | S+ | 8.50%, 1.00% PIK | 13.07% | 10/10/2024 | 12/21/2026 | 10842433 | $10842433 | $10842433 |
|  |  |  |  |  |  |  |  |  | $10842433 | $10842433 |
|  *Air Freight & Logistics* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magnate | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.80% | 2/19/2025 | 12/29/2028 | 4987500 | 4888808 | 4888808 |
|  |  |  |  |  |  |  |  |  | $4888808 | $4888808 |
|  *Capital Markets* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners |  | Sr. Secured First Lien | S+ | 5.25% | 9.56% | 10/10/2024 | 7/30/2029 | 24034581 | 24034581 | 24034581 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners |  | Delayed Draw Term Loan | S+ | 5.25% | 9.56% | 10/10/2024 | 7/30/2029 | 988139 | 988139 | 988139 |
|  |  |  |  |  |  |  |  |  | $25022720 | $25022720 |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.82% | 10/10/2024 | 4/11/2030 | 4289182 | 4185278 | 4289182 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir |  | Sr. Secured First Lien | S+ | 5.25% | 9.80% | 10/10/2024 | 1/26/2026 | 11566665 | 11566665 | 11566665 |
|  |  |  |  |  |  |  |  |  | $15751943 | $15855847 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service |  | Sr. Secured First Lien | S+ | 4.50% | 8.82% | 10/10/2024 | 12/22/2028 | 4741606 | 4741606 | 4741606 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group |  | Sr. Secured First Lien | S+ | 4.75% | 9.08% | 10/10/2024 | 11/16/2027 | 23207042 | 23207042 | 23207042 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group |  | Delayed Draw Term Loan | S+ | 4.75% | 9.08% | 10/10/2024 | 11/16/2027 | 1787617 | 1787617 | 1787617 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HR Green | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.55% | 10/10/2024 | 1/28/2030 | 5742610 | 5628528 | 5742610 |
|  |  |  |  |  |  |  |  |  | $35364793 | $35478875 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (g) | Sr. Secured First Lien | S+ | 5.75% | 10.20% | 10/10/2024 | 12/22/2026 | 12461099 | 12250159 | 10196667 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (g) | Delayed Draw Term Loan | S+ | 5.75% | 10.20% | 10/10/2024 | 12/22/2026 | 5868790 | 5739931 | 4802313 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kalkomey | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.55% | 10/10/2024 | 6/18/2031 | 17092853 | 16793286 | 17092853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens |  | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 11/1/2029 | 15226240 | 15226240 | 15226240 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.95% | 10/10/2024 | 6/30/2028 | 13062042 | 13029440 | 12139974 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo | (g) | Delayed Draw Term Loan | S+ | 5.50% | 9.95% | 10/10/2024 | 6/30/2028 | 41624 | 41525 | 38686 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree | (g) | Sr. Secured First Lien | S+ | 5.00% | 9.30% | 10/10/2024 | 6/6/2031 | 10830670 | 10718289 | 10830670 |
|  |  |  |  |  |  |  |  |  | $73798870 | $70327403 |
|  *Energy Equipment & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allied Power Group | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.55% | 10/10/2024 | 5/16/2029 | 7151029 | 6991906 | 7151029 |
|  |  |  |  |  |  |  |  |  | $6991906 | $7151029 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment**<br> **Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)<br>(continued)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert |  | Sr. Secured First Lien | S+ | 5.25% | 9.57% | 10/10/2024 | 6/30/2028 | 12527564 | $12527564 | $12527564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert |  | Delayed Draw Term Loan | S+ | 5.25% | 9.57% | 10/10/2024 | 6/30/2028 | 4577126 | 4577126 | 4577126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.56% | 10/10/2024 | 2/26/2030 | 6737995 | 6655418 | 6737995 |
|  |  |  |  |  |  |  |  |  | $23760108 | $23842685 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group | (g) | Sr. Secured First Lien | S+ | 6.50% | 10.79% | 10/10/2024 | 12/24/2029 | 6089932 | 6030996 | 5995501 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip | (g) | Sr. Secured First Lien | S+ | 5.75% | 10.19% | 10/10/2024 | 11/24/2026 | 25272862 | 25165793 | 25272862 |
|  |  |  |  |  |  |  |  |  | $31196789 | $31268363 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Sr. Secured First Lien | S+ | 5.00% | 9.45% | 10/10/2024 | 11/6/2026 | 25254280 | 25254280 | 25254280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel |  | Sr. Secured First Lien | S+ | 6.50% | 10.88% | 10/10/2024 | 8/2/2029 | 5897310 | 5897310 | 5897310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OrthoNebraska |  | Sr. Secured First Lien | S+ | 6.50% | 10.90% | 10/10/2024 | 7/31/2028 | 4807839 | 4807839 | 4807839 |
|  |  |  |  |  |  |  |  |  | $35959429 | $35959429 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax Group |  | Sr. Secured First Lien | S+ | 5.41% | 9.84% | 10/10/2024 | 7/31/2026 | 14523676 | 14523676 | 14523676 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax Group |  | Delayed Draw Term Loan | S+ | 5.41% | 9.84% | 10/10/2024 | 7/31/2026 | 8080580 | 8080580 | 8080580 |
|  |  |  |  |  |  |  |  |  | $22604256 | $22604256 |
|  *Insurance* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Sr. Secured First Lien | S+ | 4.75% | 9.05% | 10/10/2024 | 4/30/2030 | 25200013 | 25200013 | 25200013 |
|  |  |  |  |  |  |  |  |  | $25200013 | $25200013 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Sr. Secured First Lien | S+ | 5.50% | 10.06% | 10/10/2024 | 3/10/2028 | 11241071 | 11241071 | 11241071 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Delayed Draw Term Loan | S+ | 5.50% | 10.06% | 10/10/2024 | 3/10/2028 | 645460 | 645460 | 645460 |
|  |  |  |  |  |  |  |  |  | $11886531 | $11886531 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allyant | (g)<br>(i) | Sr. Secured First Lien | S+ | 5.75% | 10.20% | 10/10/2024 | 10/30/2026 | 22973892 | 22936879 | 22973892 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource |  | Sr. Secured First Lien | S+ | 4.75% | 9.07% | 10/10/2024 | 5/12/2028 | 8190770 | 8190770 | 8190770 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lighthouse |  | Sr. Secured First Lien | S+ | 5.00% | 9.45% | 10/10/2024 | 4/30/2027 | 21519321 | 21519321 | 21519321 |
|  |  |  |  |  |  |  |  |  | $52646970 | $52683983 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment**<br> **Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)<br>(continued)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Machinery* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tank Holdings | (g) | Sr. Secured First Lien | S+ | 5.82% | 10.25% | 2/6/2025 | 3/31/2028 | 6402199 | $6304306 | $6304306 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tank Holdings | (g) | Delayed Draw Term Loan | S+ | 5.82% | 10.25% | 2/6/2025 | 3/31/2028 | 613342 | 600197 | 600197 |
|  |  |  |  |  |  |  |  |  | $6904503 | $6904503 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Sr. Secured First Lien | S+ | 5.00% | 9.30% | 10/10/2024 | 9/6/2030 | 13571210 | 13571210 | 13571210 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Sr. Secured First Lien | S+ | 5.00% | 9.32% | 10/10/2024 | 11/22/2029 | 13844738 | 13844738 | 13844738 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Delayed Draw Term Loan | S+ | 5.00% | 9.32% | 10/10/2024 | 11/22/2029 | 3875835 | 3875835 | 3875835 |
|  |  |  |  |  |  |  |  |  | $31291783 | $31291783 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AIA Contract Documents |  | Sr. Secured First Lien | S+ | 5.25% | 9.64% | 10/10/2024 | 10/30/2026 | 19433775 | $19433775 | $19433775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AmpliFi | (g) | Sr. Secured First Lien | S+ | 5.00% | 9.32% | 10/10/2024 | 4/23/2030 | 9547947 | 9328281 | 9547947 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology |  | Sr. Secured First Lien | S+ | 6.30% | 10.63% | 10/10/2024 | 10/30/2028 | 15131818 | 15131818 | 15121391 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology |  | Delayed Draw Term Loan | S+ | 6.30% | 10.63% | 10/10/2024 | 10/30/2028 | 3391867 | 3391867 | 3390095 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unison Global |  | Sr. Secured First Lien | S+ | 5.00% | 9.32% | 10/10/2024 | 9/19/2028 | 14888247 | 14888247 | 14888247 |
|  |  |  |  |  |  |  |  |  | $62173988 | $62381455 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Sr. Secured First Lien | S+ | 5.75% | 10.04% | 10/10/2024 | 12/7/2028 | 7049536 | 7049536 | 7049536 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Delayed Draw Term Loan | S+ | 5.75% | 10.04% | 10/10/2024 | 12/7/2028 | 3670533 | 3670533 | 3670533 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.90% | 10/10/2024 | 12/3/2026 | 18822117 | 18665551 | 18822117 |
|  |  |  |  |  |  |  |  |  | $29385620 | $29542186 |
|  |  |  |  |  |  | **Total APCF SPV I, LLC** | **Total APCF SPV I, LLC** | **Total APCF SPV I, LLC** | $505671463 | $503132302 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Investment Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC** | **Audax Private Credit Subsidiary, LLC** | **Audax Private Credit Subsidiary, LLC** | **Audax Private Credit Subsidiary, LLC** | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Capital Markets* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners<br> (h) | Revolving Credit<br>Facility | S+ | 5.25% | 9.56% | 10/10/2024 | 7/30/2029 | 851471 | $851471 | $851471 |
|  |  |  |  |  |  |  |  | $851471 | $851471 |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group<br> (g) (h) | Delayed Draw Term<br>Loan | S+ | 5.50% | 9.82% | 10/10/2024 | 4/11/2030 | 1314171 | 1294366 | 1314171 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir | Revolving Credit<br>Facility | S+ | 5.25% | 9.80% | 10/10/2024 | 1/26/2026 | 1565413 | 1565413 | 1565413 |
|  |  |  |  |  |  |  |  | $2859779 | $2879584 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service<br> (h) (k) | Delayed Draw Term Loan | S+ | 4.50% | 8.82% | 10/10/2024 | 12/22/2028 | 1656814 | 1656814 | 1656814 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group<br> (g) (h)<br>(k) | Delayed Draw Term Loan | S+ | 4.75% | 9.08% | 10/10/2024 | 11/16/2027 | 1604775 | 1597623 | 1604775 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group<br> (h) | Revolving Credit<br>Facility | S+ | 4.75% | 9.08% | 10/10/2024 | 11/16/2027 | 157472 | 157472 | 157472 |
|  |  |  |  |  |  |  |  | $3411909 | $3419061 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners<br> (g) (h) | Revolving Credit Facility | S+ | 5.75% | 10.20% | 10/10/2024 | 12/22/2026 | 2446670 | 2422811 | 2002061 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens<br> (g) (k) | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 11/1/2029 | 2620664 | 2619379 | 2620664 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens<br> (h) | Revolving Credit<br>Facility | S+ | 5.00% | 9.33% | 10/10/2024 | 11/1/2029 | 256427 | 256427 | 256427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo<br> (g) (h) | Revolving Credit<br>Facility | S+ | 5.50% | 9.95% | 10/10/2024 | 6/30/2028 | 1092568 | 1089562 | 1015442 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree<br> (g) | Sr. Secured First Lien | S+ | 5.00% | 9.30% | 10/10/2024 | 6/6/2031 | 1341647 | 1340434 | 1341647 |
|  |  |  |  |  |  |  |  | $7728613 | $7236241 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert<br> (g) (h)<br>(k) | Delayed Draw Term<br>Loan | S+ | 5.25% | 9.57% | 10/10/2024 | 6/30/2028 | 1636470 | 1633534 | 1636470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions<br> (g) (h) | Delayed Draw Term<br>Loan | S+ | 5.25% | 9.56% | 10/10/2024 | 2/26/2030 | 645947 | 637802 | 645947 |
|  |  |  |  |  |  |  |  | $2271336 | $2282417 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group<br> (g) | Revolving Credit<br>Facility | S+ | 6.50% | 10.79% | 10/10/2024 | 12/24/2029 | 1770973 | 1762026 | 1743513 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip<br> (g) (h) | Revolving Credit<br>Facility | S+ | 5.75% | 10.19% | 10/10/2024 | 11/24/2026 | 2055266 | 2049106 | 2055266 |
|  |  |  |  |  |  |  |  | $3811132 | $3798779 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Investment Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision<br> (g) | Sr. Secured First Lien | S+ | 6.00% | 10.45% | 10/10/2024 | 9/6/2025 | 13580859 | $6847246 | $5043559 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel<br> (g) (h) | Delayed Draw Term<br>Loan | S+ | 6.50% | 10.88% | 10/10/2024 | 8/2/2029 | 783178 | 780641 | 783178 |
|  |  |  |  |  |  |  |  | $7627887 | $5826737 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax Group<br> (g) (h) | Revolving Credit Facility | S+ | 5.41% | 9.84% | 10/10/2024 | 7/31/2026 | 1022672 | 1031181 | 1022672 |
|  |  |  |  |  |  |  |  | $1031181 | $1022672 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital<br> (h) | Revolving Credit Facility | S+ | 5.50% | 10.06% | 10/10/2024 | 3/10/2028 | 573535 | 573535 | 573535 |
|  |  |  |  |  |  |  |  | $573535 | $573535 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource<br> (h) | Revolving Credit Facility | S+ | 4.75% | 9.07% | 10/10/2024 | 5/12/2028 | 838258 | 838258 | 838258 |
|  |  |  |  |  |  |  |  | $838258 | $838258 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks<br> (g) | Sr. Secured First Lien | S+ | 6.50% | 10.98% | 10/10/2024 | 3/31/2027 | 10725228 | 7666726 | 9994387 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks (Tranche B-1)<br> (g) | Sr. Secured First Lien | Fixed 18.00% | (Cash<br>9.00%, PIK<br>9.00%) | 18.00% | 10/10/2024 | 3/31/2027 | 5819559 | 4224562 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source<br> (g) (h) (k) | Delayed Draw Term<br>Loan | S+ | 5.00% | 9.30% | 10/10/2024 | 9/6/2030 | 3517434 | 3501228 | 3517434 |
|  |  |  |  |  |  |  |  | $15392516 | $13511821 |
|  *Software* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology<br> (h) | Revolving Credit Facility | S+ | 6.30% | 10.63% | 10/10/2024 | 10/30/2028 | 848464 | 848446 | 848464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unison Global<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.32% | 10/10/2024 | 9/19/2028 | 612319 | 612319 | 612319 |
|  |  |  |  |  |  |  |  | $1460765 | $1460783 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group<br> (h) | Revolving Credit Facility | S+ | 5.75% | 10.04% | 10/10/2024 | 12/7/2028 | 1024573 | 1024573 | 1024573 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety<br> (g) (h) | Revolving Credit Facility | S+ | 5.50% | 9.90% | 10/10/2024 | 12/3/2026 | 1751570 | 1737881 | 1751570 |
|  |  |  |  |  |  |  |  | $2762454 | $2776143 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | |
|  *Aerospace & Defense* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blue Raven Solutions | (j) | Class A Units |  |  |  |  |  | 1374300 | $— | $1514040 |
|  |  |  |  |  |  |  |  |  | $— | $1514040 |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir | (j) | Class A Units |  |  |  |  |  | 858937 | 806166 | 876368 |
|  |  |  |  |  |  |  |  |  | $806166 | $876368 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service | (j) | Class A Common Units |  |  |  |  |  | 781 | 1368519 | 1630837 |
|  |  |  |  |  |  |  |  |  | $1368519 | $1630837 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens | (j) | Class A Capital Units |  |  |  |  |  | 1737 | 1902090 | 2019858 |
|  |  |  |  |  |  |  |  |  | $1902090 | $2019858 |
|  *Energy Equipment & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allied Power Group | (j) | Class A Units |  |  |  |  |  | 400281 | 400281 | 610259 |
|  |  |  |  |  |  |  |  |  | $400281 | $610259 |
|  *Food Products* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Florida Food Products | (j) | Common Units |  |  |  |  |  | 1536658 | 1530282 | 1257386 |
|  |  |  |  |  |  |  |  |  | $1530282 | $1257386 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group | (j) | Class A Preferred Units |  |  |  |  |  | 5699 | 291352 | 218885 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip | (j) | Common Units |  |  |  |  |  | 13738 | 1010898 | 1208102 |
|  |  |  |  |  |  |  |  |  | $1302250 | $1426987 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy | (j) | Class A Common Units |  |  |  |  |  | 1273295 | 471761 | 1202776 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy | (j) | Preferred Units |  |  |  |  |  | 1187627 | 1705127 | 1835265 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy | (j) | Junior Preferred Units |  |  |  |  |  | 22654 | $27131 | $28793 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision | (j) | Preferred Units |  |  |  |  |  | 515362 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision | (j) | Senior Preferred Units |  |  |  |  |  | 50706 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel | (j) | Class A Units |  |  |  |  |  | 764074 | 735554 | 753427 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shearwater Health |  | Class A Common Stock |  |  |  |  |  | 687 | 1839961 | 1674818 |
|  |  |  |  |  |  |  |  |  | $4779534 | $5495079 |
|  *Insurance* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) | (j) | Common Units |  |  |  |  |  | 7635 | 1162945 | 1535009 |
|  |  |  |  |  |  |  |  |  | $1162945 | $1535009 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital | (j) | Class L Common Units |  |  |  |  |  | 81934 | 852220 | 974602 |
|  |  |  |  |  |  |  |  |  | $852220 | $974602 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allyant | (j) (i) | Common Shares |  |  |  |  |  | 5 | 1533996 | 1027571 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource | (j) | Class A Membership Interests |  |  |  |  |  | 327445 | 441589 | 700754 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lighthouse | (j) | LP Interests |  |  |  |  |  | 3519 | 7453218 | 9489505 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Voyatek | (j) | Class C LP Units |  |  |  |  |  | 1337 | 404003 | 381320 |
|  |  |  |  |  |  |  |  |  | $9832806 | $11599150 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks | (j) | Preferred Units |  |  |  |  |  | 984915 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source | (j) | Class A Common |  |  |  |  |  | 1784 | 1962 | 2586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source | (j) | Class B Common |  |  |  |  |  | 1782212 | 1962132 | 2583446 |
|  |  |  |  |  |  |  |  |  | $1964094 | $2586032 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PracticeTek | (j) | LP Interests |  |  |  |  |  | 1441373 | 1796905 | 1810297 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology | (j) | Class A-1 Units |  |  |  |  |  | 1570 | 1241560 | 1072447 |
|  |  |  |  |  |  |  |  |  | $3038465 | $2882744 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | **Audax Private Credit Subsidiary, LLC (continued)** | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety | (j) | Common Units |  |  |  |  |  | 7161 | $642983 | $738133 |
|  |  |  |  |  |  |  |  |  | $642983 | $738133 |
|  |  |  |  | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | $80203471 | $81623986 |
|  **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** |  |  |  |  |  |  |
|  **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** |  |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group | (j) | Class A Units |  |  |  |  |  | 5528 | $552762 | $636841 |
|  |  |  |  |  |  |  |  |  | $552762 | $636841 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Novvia Group | (j) | Common Units |  |  |  |  |  | 28290 | 650105 | 594195 |
|  |  |  |  |  |  |  |  |  | $650105 | $594195 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (j) | Series A Units |  |  |  |  |  | 695947 | 357387 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Kalkomey | (j) | Class A Units |  |  |  |  |  | 116815 | 1168155 | 1101531 |
|  |  |  |  |  |  |  |  |  | $1525542 | $1101531 |
|  *Entertainment* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Backstage | (j) | Class A-3 Units |  |  |  |  |  | 5801 | 406596 | 2193343 |
|  |  |  |  |  |  |  |  |  | $406596 | $2193343 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert | (j) | Class A Units |  |  |  |  |  | 618019 | 1089101 | 1628597 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions | (j) | LP Interests |  |  |  |  |  | 668564 | 671421 | 617814 |
|  |  |  |  |  |  |  |  |  | $1760522 | $2246411 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; OrthoNebraska | (j) | LP Interests |  |  |  |  |  | 34285 | 436908 | 460422 |
|  |  |  |  |  |  |  |  |  | $436908 | $460422 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taymax Group | (j) | Class A Units |  |  |  |  |  | 12729 | 2543230 | 2633777 |
|  |  |  |  |  |  |  |  |  | $2543230 | $2633777 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio**<br> **investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **APCF Equity, LLC (continued)** | **APCF Equity, LLC (continued)** | **APCF Equity, LLC (continued)** | **APCF Equity, LLC (continued)** | **APCF Equity, LLC (continued)** | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j) (continued)** | |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services | (j) | Class A Units |  |  |  |  |  | 14607 | $1577591 | $1957380 |
|  |  |  |  |  |  |  |  |  | $1577591 | $1957380 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AIA Contract Documents | (j) | Common Units |  |  |  |  |  | 419925 | 607884 | 612104 |
|  |  |  |  |  |  |  |  |  | $607884 | $612104 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group | (j) | Class A Units |  |  |  |  |  | 622 | 1058917 | 1000119 |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group | (j) | Class A-1 Units |  |  |  |  |  | 19 | 25961 | 25961 |
|  |  |  |  |  |  |  |  |  | $1084878 | $1026080 |
|  |  |  |  |  | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | $11146018 | $13462084 |
|  |  |  |  |  | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | $597020952 | $598218372 |

---

(a) All securities represent investments in companies based in the United States of America, unless otherwise noted.
All of these investments are subject to restrictions as to their resale or transfer.

(b) Unless otherwise indicated, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Partnership owns less
than 5% of the portfolio company's outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. As of March 31, 2025, all of the Partnership's investments
were non-controlled, non-affiliated.

(c) All investments are exempt from registration under the Securities Act of 1933 (the "Securities Act"),
and may be deemed to be "restricted securities" under the Securities Act.

(d) Unless indicated otherwise, all investments are valued using Level 3 inputs within the FASB Accounting
Standard Codification ("ASC") Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Consolidated Financial Statements for
additional information.

(e) At March 31, 2025, the cost of investments for income tax purposes was $597,328,808 and the net unrealized
depreciation was $889,564.

(f) Investments within APCF SPV I, LLC are pledged as collateral to the leverage facility. Refer to Note 7 –
Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.

(g) Includes a portion of original issue discount and payment-in-kind, where applicable. The interest rate shown was the current rate as of March 31, 2025 and changes periodically.

(h) Position or portion thereof is an unfunded loan commitment. The unfunded loan commitment may be subject to a
commitment termination date that may expire prior to the maturity date stated. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. Refer to Note
7—Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.

(i) The company headquarters for Allyant is located in Canada.

(j) Equity investments are non-income producing.

(k) All or portion of this security has an open position related to short-term borrowings.

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

(l) The following shows the composition of the Partnership's portfolio at fair value by investment type and
industry as of March 31, 2025.

---

| | | |
|:---|:---|:---|
| **Industry** | **Sr. Secured First<br>Lien** | **% of NAV** |
|  Aerospace & Defense | $10842433 | 3.2% |
|  Air Freight & Logistics | 4888808 | 1.4% |
|  Capital Markets | 25874191 | 7.6% |
|  Commercial Services & Supplies | 18735431 | 5.5% |
|  Construction & Engineering | 38897936 | 11.5% |
|  Diversified Consumer Services | 77563644 | 22.9% |
|  Energy Equipment & Services | 7151029 | 2.1% |
|  Financial Services | 26125102 | 7.7% |
|  Health Care Equipment & Supplies | 35067142 | 10.3% |
|  Health Care Providers & Services | 41786166 | 12.3% |
|  Hotels, Restaurants & Leisure | 23626928 | 7.0% |
|  Insurance | 25200013 | 7.4% |
|  Internet Software & Services | 12460066 | 3.7% |
|  IT Services | 53522241 | 15.8% |
|  Machinery | 6904503 | 2.0% |
|  Professional Services | 44803604 | 13.2% |
|  Software | 63842238 | 18.8% |
|  Trading Companies & Distributors | 32318329 | 9.5% |
|  **Total** | $549609804 | 162.08% |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**March 31, 2025** 

**(Expressed in U.S. Dollars)** 

**(unaudited)** 

---

| | | |
|:---|:---|:---|
| **Industry** | **Common and<br>Preferred Equity** | **% of NAV** |
|  Aerospace & Defense | $1514040 | 0.4% |
|  Commercial Services & Supplies | 1513209 | 0.4% |
|  Construction & Engineering | 1630837 | 0.5% |
|  Containers & Packaging | 594195 | 0.2% |
|  Diversified Consumer Services | 3121389 | 0.9% |
|  Energy Equipment & Services | 610259 | 0.2% |
|  Entertainment | 2193343 | 0.6% |
|  Financial Services | 2246411 | 0.7% |
|  Food Products | 1257386 | 0.4% |
|  Health Care Equipment & Supplies | 1426987 | 0.4% |
|  Health Care Providers & Services | 5955501 | 1.8% |
|  Hotels, Restaurants & Leisure | 2633777 | 0.8% |
|  Insurance | 1535009 | 0.5% |
|  Internet Software & Services | 974602 | 0.3% |
|  IT Services | 11599150 | 3.4% |
|  Professional Services | 4543412 | 1.3% |
|  Software | 3494848 | 1.0% |
|  Trading Companies & Distributors | 1764213 | 0.5% |
|  Total | $48608568 | 14.33% |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Aerospace & Defense* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blue Raven Solutions | (g) | Sr. Secured First Lien | S+ | 8.50%, 1.00% PIK | 14.28% | 10/10/2024 | 12/21/2026 | 10892417 | $10892417 | $10892417 |
|  |  |  |  |  |  |  |  |  | $10892417 | $10892417 |
|  *Capital Markets* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners |  | Sr. Secured First Lien | S+ | 5.25% | 9.76% | 10/10/2024 | 7/30/2029 | 24096204 | 24096204 | 24096204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners |  | Delayed Draw Term Loan | S+ | 5.25% | 9.76% | 10/10/2024 | 7/30/2029 | 990644 | 990644 | 990644 |
|  |  |  |  |  |  |  |  |  | $25086848 | $25086848 |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.95% | 10/10/2024 | 4/11/2030 | 4299985 | 4191573 | 4299985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir |  | Sr. Secured First Lien | S+ | 5.25% | 10.34% | 10/10/2024 | 1/26/2026 | 11597104 | 11597104 | 11597104 |
|  |  |  |  |  |  |  |  |  | $15788677 | $15897089 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service |  | Sr. Secured First Lien | S+ | 4.75% | 9.11% | 10/10/2024 | 12/22/2028 | 4753733 | 4753733 | 4753733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group |  | Sr. Secured First Lien | S+ | 5.25% | 9.50% | 10/10/2024 | 11/16/2027 | 23266840 | 23266840 | 23266840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HR Green | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.87% | 10/10/2024 | 1/28/2030 | 5757111 | 5635771 | 5757111 |
|  |  |  |  |  |  |  |  |  | $33656344 | $33777684 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Novvia Group |  | Sr. Secured First Lien | S+ | 6.00% | 10.46% | 10/10/2024 | 12/23/2026 | 25782521 | 25782521 | 25782521 |
|  |  |  |  |  |  |  |  |  | $25782521 | $25782521 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (g) | Sr. Secured First Lien | S+ | 5.75% | 10.26% | 10/10/2024 | 12/22/2026 | 12493634 | 12251530 | 12300601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (g) | Delayed Draw Term Loan | S+ | 5.75% | 10.26% | 10/10/2024 | 12/22/2026 | 5884114 | 5736141 | 5793202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kalkomey | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.58% | 10/10/2024 | 6/18/2031 | 17135800 | 16826310 | 17135800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens |  | Sr. Secured First Lien | S+ | 5.50% - 6.50% | 10.84% | 10/10/2024 | 11/1/2029 | 15264401 | 15264401 | 15264401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.96% | 10/10/2024 | 6/30/2028 | 14089493 | 14053258 | 13406875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo | (g) | Delayed Draw Term Loan | S+ | 5.50% | 9.96% | 10/10/2024 | 6/30/2028 | 44898 | 44768 | 42724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree | (g) | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 10857404 | 10741494 | 10857404 |
|  |  |  |  |  |  |  |  |  | $74917902 | $74801007 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)<br>(continued)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Energy Equipment & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allied Power Group | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.74% | 10/10/2024 | 5/16/2029 | 7169041 | $6999455 | $7169041 |
|  |  |  |  |  |  |  |  |  | $6999455 | $7169041 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert |  | Sr. Secured First Lien | S+ | 5.25% | 9.61% | 10/10/2024 | 6/30/2028 | 12559722 | 12559722 | 12559722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.76% | 10/10/2024 | 2/26/2030 | 6755010 | 6666062 | 6755010 |
|  |  |  |  |  |  |  |  |  | $19225784 | $19314732 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group | (g) | Sr. Secured First Lien | S+ | 6.50% | 11.09% | 10/10/2024 | 12/24/2029 | 6105428 | 6043858 | 6035509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip | (g) | Sr. Secured First Lien | S+ | 5.75% | 10.49% | 10/10/2024 | 11/24/2026 | 25338498 | 25199949 | 25338498 |
|  |  |  |  |  |  |  |  |  | $31243807 | $31374007 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Sr. Secured First Lien | S+ | 5.25% | 9.85% | 10/10/2024 | 11/6/2025 | 25270484 | 25270484 | 25270484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel |  | Sr. Secured First Lien | S+ | 6.50% | 10.88% | 10/10/2024 | 8/2/2029 | 5912278 | 5912278 | 5912278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OrthoNebraska |  | Sr. Secured First Lien | S+ | 6.50% | 10.93% | 10/10/2024 | 7/31/2028 | 4819707 | 4819707 | 4819707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shearwater Health |  | Sr. Secured First Lien | S+ | 5.00% | 9.48% | 10/10/2024 | 9/30/2025 | 10451742 | 10451742 | 10451742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summit Spine |  | Sr. Secured First Lien | S+ | 5.00% | 9.46% | 10/10/2024 | 6/2/2027 | 17719496 | 17719496 | 17719496 |
|  |  |  |  |  |  |  |  |  | $64173707 | $64173707 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax |  | Sr. Secured First Lien | S+ | 5.33% - 6.00% | 9.87% | 10/10/2024 | 7/31/2026 | 14560937 | 14560937 | 14560937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax |  | Delayed Draw Term Loan | S+ | 5.33% - 6.00% | 9.87% | 10/10/2024 | 7/31/2026 | 8101218 | 8101218 | 8101218 |
|  |  |  |  |  |  |  |  |  | $22662155 | $22662155 |
|  *Insurance* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Sr. Secured First Lien | S+ | 6.25% - 6.75% | 10.74% | 10/10/2024 | 4/28/2028 | 18224599 | 18224599 | 18224599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Delayed Draw Term Loan | S+ | 6.25% - 6.75% | 10.74% | 10/10/2024 | 4/28/2028 | 6975414 | 6975414 | 6975414 |
|  |  |  |  |  |  |  |  |  | $25200013 | $25200013 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)<br>(continued)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Sr. Secured First Lien | S+ | 5.75% | 10.34% | 10/10/2024 | 3/10/2028 | 11269968 | $11269968 | $11269968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Delayed Draw Term Loan | S+ | 5.75% | 10.34% | 10/10/2024 | 3/10/2028 | 647094 | 647094 | 647094 |
|  |  |  |  |  |  |  |  |  | $11917062 | $11917062 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allyant | (g) (i) | Sr. Secured First Lien | S+ | 5.50% | 10.00% | 10/10/2024 | 10/30/2026 | 22982482 | 22938897 | 22982482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource |  | Sr. Secured First Lien | S+ | 5.25% | 9.92% | 10/10/2024 | 5/12/2028 | 8214836 | 8214836 | 8214836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lighthouse |  | Sr. Secured First Lien | S+ | 5.00% | 9.48% | 10/10/2024 | 4/30/2027 | 21576210 | 21576210 | 21576210 |
|  |  |  |  |  |  |  |  |  | $52729943 | $52773528 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 9/6/2030 | 13605567 | 13605567 | 13605567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Sr. Secured First Lien | S+ | 5.00% | 9.46% | 10/10/2024 | 11/22/2029 | 13880146 | 13880146 | 13880146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Delayed Draw Term Loan | S+ | 5.00% | 9.46% | 10/10/2024 | 11/22/2029 | 3885716 | 3885716 | 3885716 |
|  |  |  |  |  |  |  |  |  | $31371429 | $31371429 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AIA Contract Documents |  | Sr. Secured First Lien | S+ | 5.25% | 9.94% | 10/10/2024 | 10/30/2026 | 19454772 | 19454772 | 19454772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AmpliFi | (g) | Sr. Secured First Lien | S+ | 5.00% | 9.36% | 10/10/2024 | 4/23/2030 | 9571998 | 9340383 | 9571998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology | (g) | Sr. Secured First Lien | S+ | 5.50% - 6.50% | 10.66% | 10/10/2024 | 10/30/2028 | 15171291 | 15169353 | 15171291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology | (g) | Delayed Draw Term Loan | S+ | 5.50% - 6.50% | 10.66% | 10/10/2024 | 10/30/2028 | 3400631 | 3400188 | 3400631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unison Global |  | Sr. Secured First Lien | S+ | 5.00% | 9.37% | 10/10/2024 | 9/19/2028 | 14926422 | 14926422 | 14926422 |
|  |  |  |  |  |  |  |  |  | $62291118 | $62525114 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Sr. Secured First Lien | S+ | 5.75% | 10.34% | 10/10/2024 | 12/7/2028 | 7067565 | 7067565 | 7067565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Delayed Draw Term Loan | S+ | 5.75% | 10.34% | 10/10/2024 | 12/7/2028 | 3679859 | 3679859 | 3679859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.93% | 10/10/2024 | 12/3/2026 | 18870503 | 18695283 | 18750673 |
|  |  |  |  |  |  |  |  |  | $29442707 | $29498097 |
|  |  |  |  |  |  | **Total APCF SPV I, LLC** | **Total APCF SPV I, LLC** | **Total APCF SPV I, LLC** | $543381889 | $544216451 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC** | **Audax Private Credit Subsidiary, LLC** |  |  | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group<br> (g) (h) | Delayed Draw Term<br>Loan | S+ | 5.50% | 9.95% | 10/10/2024 | 4/11/2030 | 1317465 | $1301916 | $1317465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group<br> (g) (h) | Revolving Credit Facility | S+ | 5.50% | 9.95% | 10/10/2024 | 4/11/2030 | 213940 | 208627 | 213940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir | Revolving Credit Facility | S+ | 5.25% | 10.34% | 10/10/2024 | 1/26/2026 | 1565413 | 1565413 | 1565413 |
|  |  |  |  |  |  |  |  | $3075956 | $3096818 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service<br> (h) | Delayed Draw Term<br>Loan | S+ | 4.75% | 9.11% | 10/10/2024 | 12/22/2028 | 1661041 | 1661041 | 1661041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group<br> (g) (h) | Delayed Draw Term Loan | S+ | 5.25% | 9.50% | 10/10/2024 | 11/16/2027 | 3016610 | 3011195 | 3016610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group<br> (h) | Revolving Credit Facility | S+ | 5.25% | 9.50% | 10/10/2024 | 11/16/2027 | 314944 | 314944 | 314944 |
|  |  |  |  |  |  |  |  | $4987180 | $4992595 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Novvia Group<br> (h) | Revolving Credit Facility | S+ | 6.00% | 10.46% | 10/10/2024 | 12/23/2026 | 1653771 | 1653771 | 1653771 |
|  |  |  |  |  |  |  |  | $1653771 | $1653771 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners<br> (g) (h) | Revolving Credit Facility | S+ | 5.75% | 10.26% | 10/10/2024 | 12/22/2026 | 2446670 | 2419208 | 2408868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens<br> (h) | Delayed Draw Term Loan | S+ | 5.50% - 6.50% | 10.84% | 10/10/2024 | 11/1/2029 | 2498591 | 2498591 | 2498591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo<br> (g) (h) | Revolving Credit Facility | S+ | 5.50% | 9.96% | 10/10/2024 | 6/30/2028 | 1298713 | 1295086 | 1235792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 868692 | 868692 | 868692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 476266 | 476266 | 476266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree<br> (g) (h) | Revolving Credit Facility | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 119577 | 118292 | 119577 |
|  |  |  |  |  |  |  |  | $7676135 | $7607786 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert<br> (g) (h) | Delayed Draw Term Loan | S+ | 5.25% | 9.61% | 10/10/2024 | 6/30/2028 | 6229357 | 6225259 | 6229357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions<br> (g) (h) | Delayed Draw Term Loan | S+ | 5.25% | 9.76% | 10/10/2024 | 2/26/2030 | 647570 | 639137 | 647570 |
|  |  |  |  |  |  |  |  | $6864396 | $6876927 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group<br> (g) | Revolving Credit Facility | S+ | 6.50% | 11.09% | 10/10/2024 | 12/22/2028 | 1770973 | 1761531 | 1750691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip<br> (g) (h) | Revolving Credit Facility | S+ | 5.75% | 10.49% | 10/10/2024 | 11/24/2026 | 1541450 | 1533376 | 1541450 |
|  |  |  |  |  |  |  |  | $3294907 | $3292141 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** |  |  | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision<br> (g) | Sr. Secured First Lien | S+ | 6.00% (3.00%<br>Cash + 3.00%<br>PIK) | 10.50% | 10/10/2024 | 9/6/2025 | 13580859 | $6847245 | $5117977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel<br> (h) | Delayed Draw Term Loan | S+ | 6.50% | 10.88% | 10/10/2024 | 8/2/2029 | 603724 | 603724 | 603724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summit Spine | Revolving Credit Facility | S+ | 5.00% | 9.46% | 10/10/2024 | 6/2/2027 | 2481375 | 2481375 | 2481375 |
|  |  |  |  |  |  |  |  | $9932344 | $8203076 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax<br> (g) (h) | Revolving Credit Facility | S+ | 5.33% - 6.00% | 9.87% | 10/10/2024 | 7/31/2026 | 1246284 | 1044215 | 1022672 |
|  |  |  |  |  |  |  |  | $1044215 | $1022672 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital<br> (h) | Revolving Credit Facility | S+ | 5.75% | 10.34% | 10/10/2024 | 3/10/2028 | 655469 | 655469 | 655469 |
|  |  |  |  |  |  |  |  | $655469 | $655469 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource<br> (h) | Revolving Credit Facility | S+ | 5.25% | 9.92% | 10/10/2024 | 5/12/2028 | 838258 | 838258 | 838258 |
|  |  |  |  |  |  |  |  | $838258 | $838258 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks<br> (g) | Sr. Secured First Lien | S+ | 6.50% | 10.98% | 10/10/2024 | 3/31/2027 | 10438717 | 7380215 | 10438717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks (Tranche B-1)<br> (g) | Sr. Secured First Lien | Fixed -<br> 18.00% | (Cash 9.00%,<br>PIK 9.00%) | 10.98% | 10/10/2024 | 3/31/2027 | 5568956 | 3973959 | 287327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 10/10/2024 | 9/6/2030 | 2925025 | 2915475 | 2925025 |
|  |  |  |  |  |  |  |  | $14269649 | $13651069 |
|  *Software* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology<br> (g) (h) | Revolving Credit Facility | S+ | 5.50% - 6.50% | 10.66% | 10/10/2024 | 10/30/2028 | 848464 | 848409 | 848464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unison Global<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.37% | 10/10/2024 | 9/19/2028 | 613854 | 613854 | 613854 |
|  |  |  |  |  |  |  |  | $1462263 | $1462318 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group | (h) | Revolving Credit Facility | S+ | 5.75% | 10.34% | 10/10/2024 | 12/7/2028 | 1298124 | $1298124 | $1298124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety | (g) (h) | Revolving Credit Facility | S+ | 5.50% | 9.93% | 10/10/2024 | 12/3/2026 | 1519317 | 1504071 | 1509670 |
|  |  |  |  |  |  |  |  |  | $2802195 | $2807794 |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** |  |  |
|  *Aerospace & Defense* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blue Raven Solutions |  | Class A Units |  |  |  |  |  | 1374300 | $— | $— |
|  |  |  |  |  |  |  |  |  | $— | $— |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir |  | Class A Units |  |  |  |  |  | 858937 | 806166 | 814332 |
|  |  |  |  |  |  |  |  |  | $806166 | $814332 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service |  | Class A Common Units |  |  |  |  |  | 781 | 1368519 | 1654183 |
|  |  |  |  |  |  |  |  |  | $1368519 | $1654183 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens |  | Class A Capital Units |  |  |  |  |  | 1737 | 1902090 | 1878708 |
|  |  |  |  |  |  |  |  |  | $1902090 | $1878708 |
|  *Energy Equipment & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allied Power Group |  | Class A Units |  |  |  |  |  | 400281 | 400281 | 516362 |
|  |  |  |  |  |  |  |  |  | $400281 | $516362 |
|  *Food Products* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Florida Food Products |  | Common Units |  |  |  |  |  | 1536658 | 1530282 | 1257386 |
|  |  |  |  |  |  |  |  |  | $1530282 | $1257386 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | | |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group |  | Class A Preferred Units |  |  |  |  |  | 5699 | $291352 | $240544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip |  | Common Units |  |  |  |  |  | 13738 | 1010898 | 1208102 |
|  |  |  |  |  |  |  |  |  | $1302250 | $1448646 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Class A Common Units |  |  |  |  |  | 1273295 | 471761 | 1032709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Preferred Units |  |  |  |  |  | 1187627 | 1705127 | 1791450 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Junior Preferred Units |  |  |  |  |  | 22654 | 27131 | 28236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision |  | Preferred Units |  |  |  |  |  | 515362 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision |  | Senior Preferred Units |  |  |  |  |  | 50706 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel |  | Class A Units |  |  |  |  |  | 764074 | 735554 | 721055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shearwater Health |  | Class A Common Stock |  |  |  |  |  | 687 | 2072203 | 2105085 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summit Spine |  | Class A Units |  |  |  |  |  | 1488825 | 3232016 | 4420005 |
|  |  |  |  |  |  |  |  |  | $8243792 | $10098540 |
|  *Insurance* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Common Units |  |  |  |  |  | 7635 | 1162945 | 1203878 |
|  |  |  |  |  |  |  |  |  | $1162945 | $1203878 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Class L Common Units |  |  |  |  |  | 81934 | 852220 | 924955 |
|  |  |  |  |  |  |  |  |  | $852220 | $924955 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allyant |  | Common Shares |  |  |  |  |  | 5 | 1533996 | 1253627 |
|  *Goldensource* |  | Class A Membership Interests |  |  |  |  |  | 327445 | 441589 | 723460 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lighthouse |  | LP Interests |  |  |  |  |  | 3519 | 7450164 | 9280900 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Voyatek |  | Class C LP Units |  |  |  |  |  | 1337 | 404003 | 399645 |
|  |  |  |  |  |  |  |  |  | $9829752 | $11657632 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | | |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks |  | Preferred Units |  |  |  |  |  | 984915 | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Class A Common |  |  |  |  |  | 1718 | 1896 | 2158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Class B Common |  |  |  |  |  | 1716159 | 1896144 | 2156311 |
|  |  |  |  |  |  |  |  |  | $1898040 | $2158469 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PracticeTek |  | LP Interests |  |  |  |  |  | 1441373 | 1796905 | 1922662 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology |  | Class A-1 Units |  |  |  |  |  | 1570 | 1241560 | 1156272 |
|  |  |  |  |  |  |  |  |  | $3038465 | $3078934 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety |  | Common Units |  |  |  |  |  | 7161 | 642983 | 542945 |
|  |  |  |  |  |  |  |  |  | $642983 | $542945 |
|  |  |  |  |  | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | $91534523 | $93395664 |
|  **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** |  |  |  |  |  |  |  |  |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group |  | Class A Units |  |  |  |  |  | 5528 | $552762 | $500870 |
|  |  |  |  |  |  |  |  |  | $552762 | $500870 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Novvia Group |  | Common Units |  |  |  |  |  | 28290 | 650105 | 635716 |
|  |  |  |  |  |  |  |  |  | $650105 | $635716 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners |  | Series A Units |  |  |  |  |  | 695947 | 357387 | 341915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kalkomey |  | Class A Units |  |  |  |  |  | 116815 | 1168155 | 1174726 |
|  |  |  |  |  |  |  |  |  | $1525542 | $1516641 |
|  *Entertainment* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Backstage |  | Class A-3 Units |  |  |  |  |  | 5801 | 406596 | 2193342 |
|  |  |  |  |  |  |  |  |  | $406596 | $2193342 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert |  | Class A Units |  |  |  |  |  | 618019 | 1089101 | 1418624 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions |  | LP Interests |  |  |  |  |  | 668564 | 666607 | 593859 |
|  |  |  |  |  |  |  |  |  | $1755708 | $2012483 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of<br>Investment** |
| **APCF Equity, LLC (continued)** | **APCF Equity, LLC (continued)** | **APCF Equity, LLC (continued)** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | | |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; OrthoNebraska |  | LP Interests |  |  |  |  |  | 34285 | $436908 | $451417 |
|  |  |  |  |  |  |  |  |  | $436908 | $451417 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taymax |  | Class A Units |  |  |  |  |  | 12729 | $2543230 | $2637034 |
|  |  |  |  |  |  |  |  |  | $2543230 | $2637034 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Class A Units |  |  |  |  |  | 14607 | 1577591 | 1803485 |
|  |  |  |  |  |  |  |  |  | $1577591 | $1803485 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AIA Contract Documents |  | Common Units |  |  |  |  |  | 419925 | 607884 | 611544 |
|  |  |  |  |  |  |  |  |  | $607884 | $611544 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Class A Units |  |  |  |  |  | 622 | 1058917 | 1000119 |
|  |  |  |  |  |  |  |  |  | $1058917 | $1000119 |
|  |  |  |  |  |  | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | $11115243 | $13362651 |
|  |  |  |  |  |  | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | $646031655 | $650974766 |

---

(a) All securities represent investments in companies based in the United States of America, unless otherwise noted.
All of these investments are subject to restrictions as to their resale or transfer.

(b) Unless otherwise indicated, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Partnership owns less
than 5% of the portfolio company's outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. As of December 31, 2024, all of the Partnership's investments
were non-controlled, non-affiliated.

(c) All investments are exempt from registration under the Securities Act of 1933 (the "Securities Act"),
and may be deemed to be "restricted securities" under the Securities Act.

(d) Unless indicated otherwise, all investments are valued using Level 3 inputs within the FASB Accounting
Standard Codification ("ASC") Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Consolidated Financial Statements for
additional information.

(e) At December 31, 2024, there is no difference between the book and tax cost of investments and unrealized
values.

(f) Investments within APCF SPV I, LLC are pledged as collateral to the leverage facility. Refer to Note 7
– Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.

(g) Includes a portion of original issue discount and payment-in-kind, where applicable. The interest rate shown was the current rate as of December 31, 2024 and changes periodically.

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

(h) Position or portion thereof is an unfunded loan commitment. The unfunded loan commitment may be subject to a
commitment termination date that may expire prior to the maturity date stated. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. Refer to Note 7 –
Commitments and Contingencies in the accompanying Notes to Consolidated Financial Statements for additional information.

(i) The company headquarters for Allyant is located in Canada.

(j) Equity investments are non-income producing.

(k) The following shows the composition of the Partnership's portfolio at fair value by investment type and
industry as of December 31, 2024.

---

| | | |
|:---|:---|:---|
| **Industry** | **Sr. Secured First<br>Lien** | **% of NAV** |
|  Aerospace & Defense | $10892417 | 3.2% |
|  Capital Markets | 25086848 | 7.4% |
|  Commercial Services & Supplies | 18993907 | 5.6% |
|  Construction & Engineering | 38770279 | 11.4% |
|  Containers & Packaging | 27436292 | 8.1% |
|  Diversified Consumer Services | 82408793 | 24.2% |
|  Energy Equipment & Services | 7169041 | 2.1% |
|  Financial Services | 26191659 | 7.7% |
|  Health Care Equipment & Supplies | 34666148 | 10.2% |
|  Health Care Providers & Services | 72376783 | 21.3% |
|  Hotels, Restaurants & Leisure | 23684827 | 7.0% |
|  Insurance | 25200013 | 7.4% |
|  Internet Software & Services | 12572531 | 3.7% |
|  IT Services | 53611786 | 15.8% |
|  Professional Services | 45022498 | 13.2% |
|  Software | 63987432 | 18.8% |
|  Trading Companies & Distributors | 32305891 | 9.5% |
|  **Total** | $600377145 | 176.43% |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | |
|:---|:---|:---|
| **Industry** | **Common and<br>Preferred Equity** | **% of NAV** |
|  Commercial Services & Supplies | $1315202 | 0.4% |
|  Construction & Engineering | 1654183 | 0.5% |
|  Containers & Packaging | 635716 | 0.2% |
|  Diversified Consumer Services | 3395349 | 1.0% |
|  Energy Equipment & Services | 516362 | 0.2% |
|  Entertainment | 2193342 | 0.6% |
|  Financial Services | 2012483 | 0.6% |
|  Food Products | 1257386 | 0.4% |
|  Health Care Equipment & Supplies | 1448646 | 0.4% |
|  Health Care Providers & Services | 10549957 | 3.1% |
|  Hotels, Restaurants & Leisure | 2637034 | 0.8% |
|  Insurance | 1203878 | 0.4% |
|  Internet Software & Services | 924955 | 0.3% |
|  IT Services | 11657632 | 3.4% |
|  Professional Services | 3961954 | 1.2% |
|  Software | 3690478 | 1.1% |
|  Trading Companies & Distributors | 1543064 | 0.5% |
|  **Total** | $50597621 | 14.87% |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

**March 31, 2025** 

**(unaudited)** 

**Note 1. Organization** 

Audax Private Credit Fund, LP (the "Partnership"), a Delaware limited partnership was formed on July 23, 2024. The Partnership is expected to convert to a Delaware limited liability company and elect to be regulated as a business development company ("BDC") under the Investment Company Act of 1940 (the "1940 Act"). As of March 31, 2025, the Partnership is taxed as a partnership for U.S. federal income tax purposes. Subsequent to March 31, 2025 the Partnership intends to elect, and qualify annually thereafter, as a regulated investment company ("RIC") as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").

The Partnership commenced operations on October 10, 2024, the effective closing date of the Master Transaction Agreement (the "MTA") between the Partnership and affiliated funds. The purpose of the Partnership is to seek to make loans to private middle market companies based primarily in the United States and Canada, including unitranche and stretch senior secured loans, first and second lien loans, and select investments in equity and other similar investments, which may be facilitated through an MTA.

The General Partner of the Partnership is Audax Private Credit Business, LP ("the General Partner"). The Partnership is managed by Audax Management Company (NY), LLC (the "Management Company").

**Note 2. Significant Accounting Policies** 

***Basis of Presentation***

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the requirements on ASC Topic 946, "*Financial Services — Investment Companies"* ("ASC 946"). In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of the consolidated financial statements for the periods presented, have been included.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management of the Partnership to make estimates and assumptions that affect reported amounts and disclosure in the consolidated financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ and these differences could be material.

***Consolidation***

As provided under Regulation S-X and ASC 946, the Partnership will not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Partnership. Accordingly, the Partnership consolidated the results of the Partnership's wholly-owned subsidiaries.

As of March 31, 2025 and December 31, 2024, APCF SPV I, LLC (the "SPV"), Audax Private Credit Subsidiary, LLC, and APCF Equity, LLC, Delaware limited liability companies (the "Subsidiaries"), are wholly owned subsidiaries of the Partnership that are consolidated. All intercompany balances and transactions have been eliminated in consolidation. The SPV is the borrower under the Partnership's leverage facility (Note 7).

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

***Cash and Cash Equivalents***

Cash is stated at cost and cash equivalents are stated at fair value. The Partnership considers all highly liquid investments purchased with maturities of three months or less and money market mutual funds to be cash equivalents. No cash equivalent balances were held at March 31, 2025 and December 31, 2024. The cash was not subject to any restrictions on withdrawal.

***Expenses***

The Partnership is responsible for investment expenses, legal expenses, auditing fees and other expenses related to the Partnership's operations. Such fees and expenses, including expenses initially incurred by the Management Company, may be reimbursed by the Partnership.

***Security Valuation***

The Partnership's investments are fair valued quarterly and at such other times as determined by the General Partner and are based on ASC 820 "Fair Value Measurements and Disclosures" as discussed in Note 3. The fair value assigned to these investments is based upon available information and does not necessarily represent the amount that ultimately might be realized upon sale or maturity. Because of the inherent uncertainty of the fair valuation process, this estimated fair value may differ significantly from the fair value that would have been used had an active market for the security existed, and the difference could be material.

***Interest Income Recognition***

Interest income, adjusted for amortization of premium, acquisition costs, and amendment fees and the accretion of original issue discount ("OID"), are recorded on an accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 120 days or more past due, or if the Partnership's qualitative assessment indicates that the debtor is unable to service its debt or other obligations, the Partnership will place the loan on non-accrual status and cease recognizing interest income on that loan for financial reporting purposes until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, the Partnership will remain contractually entitled to this interest. Interest payments received on non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management's judgment, are likely to remain current or, due to a restructuring, the interest income is deemed to be collectible. As of March 31, 2025 and December 31, 2024, the Partnership had no investments on non-accrual.

The Partnership may hold loans in the portfolio that contain OID and payment-in-kind ("PIK") provisions. The Partnership recognizes OID for loans originally issued at a discount as income over the life of the obligation based on an effective yield method. PIK interest, computed at the contractual rate specified in a loan agreement, is added to the principal balance of a loan and recorded as income over the life of the obligation. Therefore, the actual collection of PIK income may be deferred until the time of debt principal repayment.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

As of March 31, 2025 and December 31, 2024, the Partnership held 2 investments that had a PIK interest component. For the three months ended March 31, 2025, the Partnership accrued PIK income in the amount of $564,368.

As of March 31, 2025 and December 31, 2024, the Partnership held $76,317,923 and $31,592,264 cash and cash equivalents. For the three months ended March 31, 2025, the Partnership did not earn interest income related to cash.

***Realized gain (loss) and net change in unrealized appreciation (depreciation)***

Investment transactions are accounted for on the trade date. Gain or loss on the sale of investments is calculated using the specific identification method. The Partnership measures realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when a gain or loss is realized.

***Income Taxes***

The Partnership is not subject to U.S. federal or state income taxes and, therefore, no provision for income taxes is included in the consolidated financial statements. Each partner that is otherwise subject to U.S. federal and state income taxes is required to report its allocable share of the Partnership's net income and gains or losses.

The General Partner has analyzed the Partnership's inventory of tax positions taken with respect to all applicable income tax issues for all open tax years (in each respective jurisdiction), and has concluded that any potential liabilities are immaterial and no provision for income tax is required in the Partnership's consolidated financial statements. As of March 31, 2025 all applicable tax years remain subject to examinations by U.S. Federal and State tax authorities.

The Partnership may be subject to foreign taxes on income, gains on investments or currency repatriation.

Subsequent to March 31, 2025, the Partnership intends to elect to be regulated as a BDC under the 1940 Act, as well as elected to be treated as a RIC under Subchapter M of the Code. As a RIC, the Partnership generally is not subject to corporate-level U.S. federal income taxes on any ordinary income or capital gains that it timely distributes as dividends for U.S. federal income tax purposes to its stockholders. To qualify to be treated as a RIC, the Partnership is required to meet certain source of income and asset diversification requirements, and to timely distribute dividends out of assets legally available for distributions to its stockholders of an amount generally equal to at least 90% of the sum of its net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any (i.e., "investment company taxable income," determined without regard to any deduction for dividends paid), for each taxable year. The amount to be paid out as distributions to the Partnership's stockholders will be determined by the Board of Directors and based on management's estimate of the fiscal year earnings. Based on that estimate, the Partnership intends to make the requisite distributions to its stockholders, which will generally relieve the Partnership from corporate-level U.S. federal income taxes. Although the Partnership currently intends to distribute its net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any, recognized in respect of each taxable year as dividends out of the Partnership's assets legally available for

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

distribution, the Partnership in the future may decide to retain for investment and be subject to entity-level income tax on such net capital gains. Additionally, depending on the level of taxable income earned in a taxable year, the Partnership may choose to carry forward taxable income in excess of current year distributions into the next taxable year and incur a 4% excise tax on such income, as required. To the extent that the Partnership determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Partnership will accrue an excise tax, if any, on estimated excess taxable income as such excess taxable income is earned.

As of March 31, 2025, the Partnership's consolidated subsidiary, APCF Equity, LLC is expected to have a deferred tax liability due to net unrealized gains. As a result, the Partnership has a deferred tax liabilities of $618,951 as presented on the consolidated statement of assets, liabilities and partners' capital. As of March 31, 2025, there were no deferred tax assets related to APCF Equity, LLC. The deferred tax asset valuation allowance, if applicable, has been determined pursuant to the provisions of ASC Topic 740, including the Partnership's estimation of future taxable income, if necessary, and is adequate to reduce the total deferred tax asset to an amount that will more likely than not be realized. As of March 31, 2025, all taxes paid by APCF Equity, LLC, are costs borne by the limited partners of the Partnership and thus, there is a corresponding receivable from limited partners on the consolidated statement of assets, liabilities and partners' capital.

***Foreign Currency***

The accounting records of the Partnership are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing rates of exchange at year end. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions. The portion of both realized and unrealized gains and losses on investments that results from the fluctuations in foreign currency exchange rates are separately disclosed in the accompanying statement of operations, when applicable.

***Deferred Financing Costs***

Deferred financing costs represent fees and other direct incremental costs incurred in connection with borrowings. These amounts are amortized over the contractual term of the leverage facility (Note 7).

***New Accounting Pronouncements***

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09")," which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Partnership is currently assessing the impact of this guidance.

**Note 3. Investments** 

***Fair Value Measurements***

In accordance with ASC 820, the Partnership's investments' fair value is determined to be the price that would be received for an investment in a current sale, assuming an orderly transaction between willing

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

market participants on the measurement date. This fair value definition focuses on exit price in the principal, or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.

The three levels of the fair value hierarchy under ASC 820, and its applicability to the Partnership's investments, are described below:

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| | |
|:---|:---|
| Level 1 | Inputs that reflect unadjusted quoted prices in active markets that are accessible at the measurement date of identical, unrestricted assets. Equity securities are fair valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) on which they trade and are generally actively listed equities. The General Partner does not adjust the quoted price for such instruments, even in situations where the Partnership holds a large position and a sale could reasonably impact the quoted price. |
| Level 2 | Inputs that are observable, either directly or indirectly, or quoted prices for similar assets, through corroboration with observable market data. These investments are generally traded in the over-the-counter market rather than on a securities exchange and/or are subject to transfer restrictions, or the valuation is adjusted to reflect illiquidity and/or non-transferability. |
| Level 3 | Inputs that are unobservable for the asset and reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset. Level 3 includes private investments that are supported by little or no market activity. Such investments may be adjusted to reflect illiquidity and/or no transferability. |

---

Investments have been classified within Level 3 as they have unobservable inputs, and they trade infrequently or not at all. Level 3 investments include privately held debt, common and preferred equity securities, warrants, and other privately issued securities. The General Partner utilizes a proprietary model to fair value such assets, which includes an analysis of a company's credit metrics, including, but not limited to, the following factors: changes in earnings before interest, taxes, depreciation, and amortization ("EBITDA"), market multiples for comparable companies (adjusted by management for differences between the investment and the referenced comparable), comparison of current company leverage levels and the interest rate to market terms, as well as length of time until maturity date of the Partnership's investment. In addition, the inputs used by the General Partner in estimating the fair value of the Partnership's Level 3 investments include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt capital markets, and changes in financial ratios or cash flows.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

The following tables present the Partnership's investments carried at fair value as of March 31, 2025 and December 31, 2024, by caption on the Partnership's accompanying consolidated statements of assets and liabilities and by security type.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value of Assets as of March 31, 2025** | **Fair Value of Assets as of March 31, 2025** | **Fair Value of Assets as of March 31, 2025** | **Fair Value of Assets as of March 31, 2025** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets** |  |  |  |  |
|  Sr. Secured First Lien | $— | $— | $549609804 | $549609804 |
|  Common and Preferred Equity |  |  | 48608568 | 48608568 |
|  **Total** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $598218372 | $598218372 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value of Assets as of December 31, 2024** | **Fair Value of Assets as of December 31, 2024** | **Fair Value of Assets as of December 31, 2024** | **Fair Value of Assets as of December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets** |  |  |  |  |
|  Sr. Secured First Lien | $— | $— | $600377145 | $600377145 |
|  Common and Preferred Equity |  |  | 50597621 | 50597621 |
|  **Total** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $650974766 | $650974766 |

---

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Partnership's investments as of March 31, 2025.

**March 31, 2025** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair Value** | **Valuation Approach** | **Unobservable Input** | **Range** | **Weighted<br>Average<sup>(2)</sup>** |
|  Sr. Secured First Lien | $492583404 | Analysis of trend in leverage | Maturity Modified Market Yield<sup>(1)</sup> | 5.89% - 11.24% | 7.98% |
|  Sr. Secured First Lien | $45233089 | Total Enterprise Value | EBITDA Multiple | 7.00x - 9.50x | 8.51x |
|  Common and Preferred Equity | $48608568 | Market Comparables | EBIDTA Multiple | 9.00x - 20.75x | 14.65x |
|  | $586425061 |  |  |  |  |

---

(1) Maturity Modified Market Yield is calculated based on the Market yield of the security relative to its actual
coupon and maturity date. The Market Yield is modified 75 basis points for every 1x delta in actual leverage versus market leverage of that issuer.

(2) Inputs are weighted based on the fair value of the investments included in the range.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

The table does not include $11,793,311 of other investments, which the General Partner valued at the purchase price.

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Partnership's investments as of December 31, 2024.

**December 31, 2024** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair Value** | **Valuation Approach** | **Unobservable Input** | **Range** | **Weighted<br>Average<sup>(2)</sup>** |
|  Sr. Secured First Lien | $584533124 | Analysis of trend in leverage | Maturity Modified Market Yield<sup>(1)</sup> | 5.28% - 11.67% | 8.36% |
|  Sr. Secured First Lien | $15844021 | Total Enterprise Value | EBITDA Multiple | 7.00x - 9.50x | 7.81x |
|  Common and Preferred Equity | $50597621 | Market Comparables | EBIDTA Multiple | 8.00x - 21.25x | 14.48x |
|  | $650974766 |  |  |  |  |

---

(1) Maturity Modified Market Yield is calculated based on the Market yield of the security relative to its actual
coupon and maturity date. The Market Yield is modified 75 basis points for every 1x delta in actual leverage versus market leverage of that issuer.

(2) Inputs are weighted based on the fair value of the investments included in the range.

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in market yields, discounts rates, leverage, or EBITDA multiples, each in isolation, may change the fair value of certain of the Partnership's investments. Generally, an increase or decrease in market yields, discount rates or leverage or a decrease in EBITDA or EBITDA multiples may result in a corresponding decrease or increase, respectively, in the fair value of certain of the Partnership's investments.

The following table provides the changes in fair value, broken out by security type, during the three months ended March 31, 2025 for all investments for which the Partnership determines fair value using unobservable (Level 3) factors.

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| | | | |
|:---|:---|:---|:---|
| **Three Months Ended March 31, 2025** | **Sr. Secured First<br>Lien** | **Common and<br>Preferred Equity** | **Total** |
|  Fair Value as of December 31, 2024 | $600377145 | $50597621 | $650974766 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 |  |  |  |
|  Total Gains: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized (loss) gain<sup>(a)</sup>  | (5286) | 861781 | 856495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (depreciation) appreciation<sup>(b)</sup> | (5121014) | 1375323 | (3745691) |
|  New investments, repayments and settlements:<sup>(c)</sup>  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of investments | 13096775 | 99882 | 13196657 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings on revolving credit facilities | 12662909 |  | 12662909 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposition and repayments of investments | (56150631) | (4326039) | (60476670) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments on revolving credit facilities | (15996702) |  | (15996702) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of premiums, PIK, discounts and fees | 746608 |  | 746608 |
|  **Fair Value as of March 31, 2025** | $549609804 | $48608568 | $598218372 |

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There were no level 3 transfers during the period.

As reflected on the Consolidated Statement of Operations, the change in unrealized value attributable to investments still held at March 31, 2025 was ($2,557,702).

The following tables provide the changes in fair value, broken out by security type, during the period ending December 31, 2024 for all investments for which the Partnership determines fair value using unobservable (Level 3) factors.

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| | | | |
|:---|:---|:---|:---|
| **Period Ended December 31, 2024** | **Sr. Secured First<br>Lien** | **Common and<br>Preferred Equity** | **Total** |
|  Fair Value as of October 10, 2024 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Gains: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss)<sup>(a)</sup>  | 14285 | (807020) | (792735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (depreciation) appreciation<sup>(b)</sup>  | (1561482) | 6504593 | 4943111 |
|  New investments, repayments and settlements:<sup>(c)</sup>  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 630681737 | 45642367 | 676324104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlements/repayments | (29187835) | (742319) | (29930154) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of premiums, PIK, discounts and fees | 430440 |  | 430440 |
|  **Fair Value as of December 31, 2024** | $600377145 | $50597621 | $650974766 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) ***Investment Activities***

As of March 31, 2025, the Partnership held a total of 44 investments with an aggregate fair value of $598,218,372. During the three months ended March 31, 2025, the Partnership invested in 2 new investments for a combined cost of $11,725,026 and in existing investments for a combined cost of $14,134,534. The Partnership received $18,436,411 in repayments from investments and $58,036,961 from investments sold during the period. As of December 31, 2024, the Partnership held a total of 43 investments with an aggregate fair value of $650,974,766. During the period ending December 31, 2024, the Partnership invested in 44 new investments for a combined cost of $676,324,104. The Partnership also received $1,368,230 in repayments from investments and $28,561,924 from investments sold during the period.

***Investment Concentrations***

As of March 31, 2025, the Partnership's investment portfolio consisted of investments in 44 companies located in 24 states across 21 different industries, with an aggregate fair value of $598,218,372. The five largest investments at fair value as of March 31, 2025 totaled $141,358,098, or 23.6% of the Partnership's

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

total investment portfolio as of such date. As of March 31, 2025, the Partnership's average investment was $13,568,658 at cost. As of December 31, 2024, the Partnership's investment portfolio consisted of investments in 43 companies located in 23 states across 19 different industries, with an aggregate fair value of $650,974,766. The five largest investments at fair value as of December 31, 2024 totaled $141,738,443, or 21.8% of the Partnership's total investment portfolio as of such date. As of December 31, 2024, the Partnership's average investment was $15,023,992 at cost.

The following table outlines the Partnership's investments by security type as of March 31, 2025 and December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** | **March 31, 2025** |
|  | **Cost** | **Percentage of<br>Total<br>Investments** | **Fair Value** | **Percentage of<br>Total<br>Investments** |
|  Sr. Secured First Lien | $556292299 | 93.18% | $549609804 | 91.87% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Sr. Secured First Lien | 556292299 | 93.18% | 549609804 | 91.87% |
|  Common and Preferred Equity | 40728653 | 6.82% | 48608568 | 8.13% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Common and Preferred Equity | 40728653 | 6.82% | 48608568 | 8.13% |
|  **Total Investments** | $597020952 | 100.00% | $598218372 | 100.00% |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Cost** | **Percentage of<br>Total<br>Investments** | **Fair Value** | **Percentage of<br>Total<br>Investments** |
|  Sr. Secured First Lien | $601938627 | 93.17% | $600377145 | 92.23% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Sr. Secured First Lien | 601938627 | 93.17% | 600377145 | 92.23% |
|  Common and Preferred Equity | 44093028 | 6.83% | 50597621 | 7.77% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Common and Preferred Equity | 44093028 | 6.83% | 50597621 | 7.77% |
|  **Total Investments** | $646031655 | 100.00% | $650974766 | 100.00% |

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Investments at fair value were included in the following geographic regions of the United States as of March 31, 2025 and December 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **March 31, 2025** | **March 31, 2025** | **December 31, 2024** | **December 31, 2024** |
| <br>**Geographic Region** | **Fair Value** | **Percentage of<br>Total<br>Investments** | **Fair Value** | **Percentage of<br>Total<br>Investments** |
|  Northeast | $187842964 | 31.4% | $184011379 | 28.3% |
|  Southwest | 83832979 | 14.0% | 82956224 | 12.8% |
|  Southeast | 83092524 | 13.9% | 149899881 | 23.0% |
|  Midwest | 70660827 | 11.8% | 64948603 | 10.0% |
|  West | 62629890 | 10.5% | 63940988 | 9.8% |
|  East | 50260091 | 8.4% | 50124473 | 7.7% |
|  Northwest | 35897634 | 6.0% | 30857110 | 4.7% |
|  Other<sup>(1)</sup>  | 24001463 | 4.0% | 24236108 | 3.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Investments** | $598218372 | 100.0% | $650974766 | 100.0% |

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

Certain prior period information has been reclassified to conform to the current period presentation. The reclassification has no effect on the Company's financial position or the result of the operations as previously reported.

The geographic region indicates the location of the headquarters of the Partnership's portfolio companies. A portfolio company may have a number of other business locations in other geographic regions.

***Investment Principal Repayments***

The following table summarizes the contractual principal repayments and maturity of the Partnership's investment portfolio by fiscal year, assuming no voluntary prepayments, as of March 31, 2025:

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| | |
|:---|:---|
| **For the Fiscal Years Ending December 31** | **Amount** |
| 2025 | $32602665 |
| 2026 | 164919955 |
| 2027 | 64821015 |
| 2028 | 125361044 |
| 2029 | 82282619 |
|  Thereafter | 99831678 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total contractual repayments** | $569818976 |
|  Adjustment to cost basis on debt investments<sup>(a)</sup> | (13526677) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Cost Basis of Debt Investments Held at March 31, 2025:** | $556292299 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Adjustments to cost basis related to unamortized balance of market discount on investments.

The following table summarizes the contractual principal repayments and maturity of the Partnership's investment portfolio by fiscal year, assuming no voluntary prepayments, as of December 31, 2024:

---

| | |
|:---|:---|
| **For the Fiscal Years Ending December 31** | **Amount** |
| 2025 | $49303085 |
| 2026 | 185931107 |
| 2027 | 84383146 |
| 2028 | 141059486 |
|  Thereafter | 154957586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total contractual repayments** | $615634410 |
|  Adjustment to cost basis on debt investments<sup>(a)</sup> | (13695783) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Cost Basis of Debt Investments Held at December 31, 2024:** | $601938627 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Adjustments to cost basis related to unamortized balance of market discount on investments.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

**Note 4. Related Party Transactions** 

***Management Fee***

Pursuant to the partnership agreement, the Partnership shall pay to the Management Company a quarterly fee as compensation for managing the affairs of the Partnership. Such fee shall be calculated as the product of (i) such Partner's pro rata share of the Net Asset Value multiplied by (ii) 0.3125% (i.e. 1.25% per annum). The Partners acknowledge and agree that the General Partner is expected to vary the management fee rate for one or more Limited Partners, and the General Partner is hereby authorized to do so.

As of each Fee Due Date, the Management Company will determine in good faith the Aggregate Asset Value and Net Asset Value on a preliminary basis (in each case, a "Preliminary Asset Value"). If the Preliminary Asset Value as of any Fee Due Date differs from the final Aggregate Asset Value or Net Asset Value as of such date as finally determined by the Management Company, the management fee payable on subsequent Fee Due Dates shall be adjusted on an equitable basis by the Management Company to account for such difference. Net Asset Value, Fee Due Date, and Aggregate Asset Value are referenced as defined terms in the partnership agreement.

For the three months ended March 31, 2025, the net management fee was $155,123, all of which was payable as of March 31, 2025 and reflected in payable to Management Company in the accompanying consolidated statement of assets, liabilities, and partners' capital. For the three months ended March 31, 2025, there was a management fee waiver of $913,843.

Each quarterly installment of the management fee calculated with respect to each Limited Partner shall be reduced, but not below zero, by such Limited Partner's pro rata share of all fee income received since the preceding Fee Due Date. In the event that the aggregate amount of fees referred to in the preceding sentence, together with fee income to be applied against the management fee, exceeds the management fee for the immediately succeeding quarterly period, such excess shall be carried forward to reduce the management fee payable in following quarterly periods.

In addition, the General Partner shall reduce the management fee payable in any quarterly period by the aggregate amount of all placement fees paid or reimbursed by the Partnership.

During the three months ended March 31, 2025, there were no fee income or placement fee offsets applied.

Installments of the management fee payable for any period other than a full quarter (including the first management fee payment) shall be adjusted on a pro rata basis according to the actual number of days in such period.

***Administration Fee***

Pursuant to the partnership agreement, the Limited Partners will pay to the Management Company a quarterly fee of 0.025% of the Average Aggregate Asset Value for administration services. Adjustments to the administration fees shall be made in a manner similar to the adjustments made under the management fee to reflect any difference between the Preliminary Asset Value with respect to the applicable determination date and the final Aggregate Asset Value with respect to such date. The calculation for any period other than a full calendar year (including the first calendar year of the Partnership) shall be adjusted on a pro rata basis according to the actual number of days in such period.

During the three months ended March 31, 2025, the Partnership incurred administration fees of $169,441, all of which was payable at March 31, 2025 and reflected in payable to Management Company in the accompanying consolidated statement of assets, liabilities, and partners' capital.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

***Related Party Transactions***

In October 2024, the Partnership entered into an MTA whereby the Partnership agreed to purchase a pro-rata strip of the portfolio assets of the affiliated funds at an agreed upon price. In connection with the agreement, the Partnership agreed to purchase the portfolio assets of the affiliated funds at an agreed upon purchase price with all transfers to be settled by December 9, 2024. Effective October 10, 2024, the Partnership agreed to purchase $672,696,781 of outstanding principal or equity interests at a purchase price of $667,862,181. As of December 31, 2024, all assets approved for transfer were settled.

***Related Party Fees***

The Partnership and the Management Company, together with Audax PDB Management Company, LLC (together, the "Adviser") have entered into an agreement whereby the Adviser may elect to pay a portion of the Partnership's expenses from time to time, which the Partnership will be obligated to reimburse the Adviser at a later date if certain conditions are met.

At such times as the Adviser determines, the Adviser may elect to pay certain expenses of the Partnership on the Partnership's behalf (each such payment, an "Expense Payment"). In making an Expense Payment, the Adviser will designate, as it deems necessary or advisable, what type of expense it is paying (including, whether it is paying organizational or offering expenses); provided that no portion of an Expense Payment will be used to pay any interest expense or distribution and/or servicing fees of the Partnership. Any Expense Payment that the Adviser has committed to pay shall be paid by the Adviser to the Partnership in any combination of cash or other immediately available funds no later than forty-five (45) days after such commitment was made in writing, and/or offset against amounts due from the Partnership to the Adviser or its affiliates.

The Partnership's obligation to make a reimbursement payment shall automatically become a liability of the Partnership on the last business day of the applicable calendar month or quarter, as applicable, except to the extent the Adviser has waived its right to receive such payment for the applicable month or quarter, as applicable. For the period ended March 31, 2025, the Partnership did not incur expenses related to this agreement. As of March 31, 2025, the Partnership had $2,032,841 of expenses from prior periods which were paid by the Adviser and may be reimbursed by the Partnership at a later date.

**Note 5. Partners' Capital** 

***Capital Commitments and Contributions***

At March 31, 2025, the Partnership had capital commitments of $567,676,768, of which $5,676,768 represents the General Partner's commitment and $562,000,000 represents Limited Partners' commitments. At March 31, 2025, the Partnership has total unfunded capital commitments of $241,391,869 representing commitments of $2,413,919 by the General Partner and $238,977,950 by the Limited Partners. During the period ended March 31, 2025, the amounts shown as capital called and return of capital called as reflected on the consolidated statement of cash flows did not impact the total called or uncalled capital commitments of the Partnership and were a result of rebalancing transactions within the Partnership.

At December 31, 2024, the Partnership had capital commitments of $373,737,374, of which $3,737,374 represents the General Partner's commitment and $370,000,000 represents Limited Partners' commitments. At December 31, 2024, the Partnership had total unfunded capital commitments of $47,452,475 representing commitments of $474,525 by the General Partner and $46,977,950 by the Limited Partners.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

Installments of committed capital are due from the partners upon at least ten business days' written notice by the General Partner.

***Allocation of Operating Income, Operating Expenses and Realized Capital Gains and Losses***

Investment proceeds from any investment are apportioned preliminarily among the partners in proportion to their sharing percentage with respect to the applicable investment. The amount allocated to the General Partner is distributed to the General Partner and the amount allocated to each Limited Partner is then distributed between the General Partner and such Limited Partners as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. First, 100% to such Limited Partner until such Limited Partner has received distributions equal to such Limited
Partner's aggregate capital contributions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Second, 100% to such Limited Partner until the unpaid preferred return of 6.0% of such Limited Partner is
reduced to zero

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Third, 100% to the General Partner until the General Partner has received aggregate distributions with respect
to such Limited Partner equal to 12.5% of the aggregate distributions made to all Partners, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Thereafter, 12.5% to the General Partner and 87.5% to such Limited Partner.

For the three months ended March 31, 2025, carried interest of $77,680 was allocated from the General Partner to the Limited Partners. Total carried interest allocated from the Limited Partners to the General Partner since commencement of operations was $1,029,857, which has been reduced by a waived amount of $1,487,294 and is the amount the General Partner would receive if all investments were sold at fair value at March 31, 2025.

***Distributions***

The amount and timing of all distributions of cash, securities or other property is at the sole discretion of the General Partner, provided that such cash distributions occur promptly after the end of each fiscal quarter, subject in each case to the availability of cash after all expenses have been paid and reserves have been set aside for anticipated liabilities, obligations and commitments of the Partnership. All distributions will follow the allocation methodology described above. During the three months ended March 31, 2025, the Partnership made $7,536,845 in distributions.

***Withdrawals***

No Limited Partner has the right to withdraw from the Partnership.

**Note 6. Off-Balance Sheet Risk** 

The Partnership's investing activities expose it to various types of risk associated with the companies and markets in which the Partnership is invested, including, but not limited to:

***Credit Risk***

The Partnership invests its assets in debt instruments. Investment portfolios with debt securities are subject to credit risk, the risk that an issuer will default in the payment of principal and/or interest to the

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

Partnership. A company's payment default could limit the amount of income the Partnership is able to realize from the investment.

***Leveraged Investments***

The General Partner utilizes leverage to finance portions of the Partnership's investments. Losses incurred with borrowed funds would cause partners' capital to decrease more significantly than without the use of borrowed funds. As of March 31, 2025 and December 31, 2024, the Partnership had $326,209,141 and $343,009,141 outstanding on the Leverage Facility.

***Interest Rate Risk***

Changes in interest rates could negatively affect the fair value of the Partnership's investments, which could result in reduced earnings or losses and negatively affect cash flows. The Partnership has investments that are based on a floating rate for which decreases in interest rates will have a negative effect on yield.

***Illiquidity***

The Partnership's investments are long-term and illiquid. The valuations of the Partnership's investments may decline in response to certain events, including those directly involving the Partnership's portfolio companies; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations. In addition, if the Partnership is required to liquidate all or a portion of its portfolio quickly, the Partnership may realize significantly less than the fair value at which it previously recorded those investments.

All of the companies in which the General Partner has invested are privately held. As a result, there will be no readily available secondary market for the Partnership's interests in its companies, and its interests in these companies are and will be subject to legal restrictions on transfer. Accordingly, the General Partner may not be able to realize liquidity for such investments in a timely manner. As a result, the fair values ascribed to the Partnership's assets by the General Partner may differ substantially from the fair values that would be ascribed to such assets by a third party.

***Concentration Risk***

The Partnership is invested in a limited number of companies and, as a consequence, the aggregate return of the Partnership may be materially and adversely affected by the unfavorable performance of even a single company.

***Indemnification***

The Partnership has agreed to indemnify the "Indemnified Parties," as defined in the partnership agreement, against certain losses and other liabilities to which they may become subject in connection with matters arising out of or in connection with the Partnership's business and affairs. The Partnership believes that it is unlikely that it will have to make material payment under these arrangements, and no liabilities related to these indemnifications have been recognized in the consolidated financial statements.

***Market Risk***

Economic activity has continued to accelerate across sectors and regions. Nevertheless, due to global supply chain issues, geopolitical events, a rise in energy prices and strong consumer demand as economies continue

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

to reopen, inflation is showing signs of acceleration in the U.S. and globally. Inflation is likely to continue in the near to medium-term, particularly in the U.S., with the possibility that monetary policy may tighten in response.

**Note 7. Commitments and Contingencies** 

On October 10, 2024, the SPV entered into a Loan and Servicing Agreement ("LSA") with Wells Fargo Bank, National Association (the "Leverage Facility"). The LSA allows for an advance of up to $500,000,000 for loans acquired by the SPV. The Leverage Facility has a maturity date of October 10, 2029 and accrues interest at SOFR plus 2.15%. The average rate for the outstanding loans as of March 31, 2025 and December 31, 2024 was 6.49% and 6.79%, respectively, and weighted average outstanding balance for the periods was $332,742,475 and $285,820,654, respectively. As of March 31, 2025 and December 31, 2024, the Partnership had $323,917,475 and $340,592,475 outstanding on its leverage facility, net of deferred financing costs, which totaled $2,291,666 and $2,416,667, respectively. The Partnership incurred interest expense of $5,597,433 during the three months ended March 31, 2025.

At March 31, 2025 and December 31, 2024, the carrying amount of the Partnership's secured borrowings approximated their fair value. The fair values of the Partnership's debt obligations are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Partnership's borrowings is estimated based upon market interest rates for the Partnership's own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of March 31, 2025 Partnership's borrowings would be deemed to be Level 3, as defined in Note 3 — Fair Value of Financial Instruments.

***Short-Term Borrowings***

From time to time, the Fund finances the purchase of certain investments through repurchase agreements. In the repurchase agreements, the Fund enters into a trade to sell an investment and contemporaneously enters into a trade to buy the same investment back on a specified date in the future with the same counterparty. Investments sold under repurchase agreements are accounted for as collateralized borrowings as the sale of the investment does not qualify for sale accounting under ASC Topic 860—Transfers and Servicing and remains as an investment on the Consolidated Statement of Assets, Liabilities and Partners' Capital. The Fund uses repurchase agreements as a short-term financing alternative. As of March 31, 2025, the Fund had short-term borrowings outstanding of $8,955,802. For the period ended March 31, 2025, the Fund recorded interest expense of $151,605 in connection with short-term borrowings and had average outstanding balances of short-term borrowings of $8,159,731. The Fund's short term borrowings bore interest at a weighted average rate of 7.54% for the period ended March 31, 2025.

The Partnership may enter into certain credit agreements that include loan commitments where all or a portion of which may be unfunded. The Partnership is generally obligated to fund these unfunded loan commitments at the borrowers' discretion. Funded portions of credit agreements are presented in the accompanying consolidated schedule of portfolio investments. Unfunded loan commitments and funded portions of credit agreements are fair valued and unrealized appreciation or depreciation, if any, is included in the accompanying consolidated statement of assets, liabilities and partners' capital and accompanying consolidated statement of operations.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

The following table summarizes the Partnership's significant contractual payment obligations as of March 31, 2025 and December 31, 2024:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investment** | **Investment Type** | **Index()** | **Spread** | **Interest Rate** | **Maturity** | **Industry** | **March 31,<br>2025** | **December 31,<br>2024** |
|  Prime Pensions | Delayed Draw Term Loan | S+ | 5.25% | 9.56% | 2/26/2030 | Financial Services | $4586235 | $4586235 |
|  SavATree | Delayed Draw Term Loan | S+ | 5.00% | 9.30% | 6/6/2031 | Diversified Consumer Services | 3488723 | 3488723 |
|  Lighthouse | Revolving Credit Facility | S+ | 5.00% | 9.45% | 4/30/2027 | IT Services | 3440538 | 3440538 |
|  Kalkomey | Delayed Draw Term Loan | S+ | 5.25% | 9.55% | 6/18/2031 | Diversified Consumer Services | 3435749 | 3435749 |
|  HR Green | Delayed Draw Term Loan | S+ | 5.25% | 9.55% | 1/28/2030 | Construction & Engineering | 2788758 | 2788758 |
|  Kalkomey | Revolving Credit Facility | S+ | 5.25% | 9.55% | 6/18/2031 | Diversified Consumer Services | 2748599 | 2748599 |
|  Foundation Source | Revolving Credit Facility | S+ | 5.00% | 9.30% | 9/6/2030 | Professional Services | 2576812 | 2576812 |
|  Allyant | Revolving Credit Facility | S+ | 5.75% | 10.20% | 10/30/2026 | IT Services | 2576812 | 2576812 |
|  Cherry Bekaert | Revolving Credit Facility | S+ | 5.25% | 9.57% | 6/30/2028 | Financial Services | 2331260 | 2331260 |
|  Avita Pharmacy | Revolving Credit Facility | S+ | 5.00% | 9.45% | 11/6/2026 | Health Care Providers & Services | 2273658 | 2273658 |
|  AIA Contract Documents | Revolving Credit Facility | S+ | 5.25% | 9.64% | 10/30/2026 | Software | 1959650 | 1959650 |
|  MDpanel | Delayed Draw Term Loan | S+ | 6.50% | 10.88% | 8/2/2029 | Health Care Providers & Services | 1932206 | 2113634 |
|  SIAA (Alliance Holdings) | Revolving Credit Facility | S+ | 4.75% | 9.05% | 4/30/2030 | Insurance | 1908750 | 1908750 |
|  Magna Legal Services | Revolving Credit Facility | S+ | 5.00% | 9.32% | 11/22/2029 | Professional Services | 1859558 | 1859558 |
|  Ned Stevens | Revolving Credit Facility | S+ | 5.00% | 9.33% | 11/1/2029 | Diversified Consumer Services | 1538560 | 1794987 |
|  Allied Power Group | Delayed Draw Term Loan | S+ | 5.25% | 9.55% | 5/16/2029 | Energy Equipment & Services | 1501056 | 1501056 |
|  Power Digital | Revolving Credit Facility | S+ | 5.50% | 10.06% | 3/10/2028 | Internet Software & Services | 1474804 | 1392871 |
|  SavATree | Revolving Credit Facility | S+ | 5.00% | 9.30% | 6/6/2031 | Diversified Consumer Services | 1434927 | 1315351 |
|  AmpliFi | Revolving Credit Facility | S+ | 5.00% | 9.32% | 4/23/2030 | Software | 1202512 | 1202512 |
|  Allied Power Group | Revolving Credit Facility | S+ | 5.25% | 9.55% | 5/16/2029 | Energy Equipment & Services | 1200844 | 1200844 |
|  Cumming Group | Revolving Credit Facility | S+ | 4.75% | 9.08% | 11/16/2027 | Construction & Engineering | 1154793 | 997322 |
|  Prime Pensions | Revolving Credit Facility | S+ | 5.25% | 9.56% | 2/26/2030 | Financial Services | 1047086 | 1047086 |
|  RotoCo | Revolving Credit Facility | S+ | 5.50% | 9.95% | 6/30/2028 | Diversified Consumer Services | 968881 | 762736 |
|  Taymax Group | Revolving Credit Facility | S+ | 5.41% | 9.84% | 7/31/2026 | Hotels, Restaurants & Leisure | 935705 | 712093 |
|  Unison Global | Delayed Draw Term Loan | S+ | 5.00% | 9.32% | 9/19/2028 | Software | 913146 | 913146 |

---

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investment** | **Investment Type** | **Index()** | **Spread** | **Interest Rate** | **Maturity** | **Industry** | **March 31,<br>2025** | **December 31,<br>2024** |
|  Russell Landscape Group | Delayed Draw Term Loan | S+ | 5.50% | 9.82% | 4/11/2030 | Commercial Services & Supplies | $821531 | $821531 |
|  Tribute Technology | Revolving Credit Facility | S+ | 6.30% | 10.63% | 10/30/2028 | Software | 801327 | 801327 |
|  A1 Garage Door Service | Revolving Credit Facility | S+ | 4.50% | 8.82% | 12/22/2028 | Construction & Engineering | 788740 | 788740 |
|  Foundation Source | Delayed Draw Term Loan | S+ | 5.00% | 9.30% | 9/6/2030 | Professional Services | 755865 | 1357121 |
|  MDpanel | Revolving Credit Facility | S+ | 6.50% | 10.88% | 8/2/2029 | Health Care Providers & Services | 680354 | 680354 |
|  OrthoNebraska | Revolving Credit Facility | S+ | 6.50% | 10.90% | 7/31/2028 | Health Care Providers & Services | 659331 | 659331 |
|  Russell Landscape Group | Revolving Credit Facility | S+ | 5.50% | 9.82% | 4/11/2030 | Commercial Services & Supplies | 641821 | 427881 |
|  Cerity Partners | Revolving Credit Facility | S+ | 5.25% | 9.56% | 7/30/2029 | Capital Markets | 621344 | 1472815 |
|  Goldensource | Revolving Credit Facility | S+ | 4.75% | 9.07% | 5/12/2028 | IT Services | 471520 | 471520 |
|  Industrial Service Group | Revolving Credit Facility | S+ | 5.75% | 10.04% | 12/7/2028 | Trading Companies & Distributors | 467524 | 193973 |
|  Cumming Group | Delayed Draw Term Loan | S+ | 4.75% | 9.08% | 11/16/2027 | Construction & Engineering | 407611 | 791007 |
|  Ned Stevens | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 11/1/2029 | Diversified Consumer Services | 349716 | 478353 |
|  USMed-Equip | Revolving Credit Facility | S+ | 5.75% | 10.19% | 11/24/2026 | Health Care Equipment & Supplies | 280264 | 794080 |
|  Cherry Bekaert | Delayed Draw Term Loan | S+ | 5.25% | 9.57% | 6/30/2028 | Financial Services | 209847 | 209847 |
|  National Trench Safety | Revolving Credit Facility | S+ | 5.50% | 9.90% | 12/3/2026 | Trading Companies & Distributors | 183866 | 283502 |
|  Heritage Partners | Revolving Credit Facility | S+ | 5.75% | 10.20% | 12/22/2026 | Diversified Consumer Services | 156170 | 156170 |
|  Shearwater Health | Revolving Credit Facility | S+ | 5.00% | 9.48% | 9/30/2025 | Health Care Providers & Services |  | 944028 |
|  OrthoNebraska | Delayed Draw Term Loan | S+ | 6.50% | 10.93% | 7/31/2028 | Health Care Providers & Services |  | 1318661 |
|  Novvia Group | Revolving Credit Facility | S+ | 6.00% | 10.46% | 12/23/2026 | Containers & Packaging |  | 272953 |
|  A1 Garage Door Service | Delayed Draw Term Loan | S+ | 4.75% | 9.11% | 12/22/2028 | Construction & Engineering |  | 478055 |
|  |  |  |  |  |  | **Total Unfunded Commitments** | $59576453 | $64329989 |

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

**Note 8. Financial Highlights** 

The following is a schedule of financial highlights for the three months ended March 31, 2025.

---

| | |
|:---|:---|
|  | **Limited Partners** |
|  **Internal rate of return, since inception\*:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Internal rate of return through March 31, 2025 | 15.82% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Internal rate of return through December 31, 2024 | 32.75% |
|  **Ratios to average Partners' capital\*\*:** |  |
|  Net investment income | 2.64% |
|  Total expenses, before incentive allocation\*\*\* | 1.86% |
|  Incentive allocation\*\*\*\* | (0.02%) |
|  Total expenses, including incentive allocation\*\*\* | 1.84% |
|  Portfolio turnover rate\*\*\*\*\* | 4.05% |

---

\* The calculation of the internal rate of return assumes that contributions are made on the date that each capital call is due, and distributions are made on the actual date of distribution. The terminal cash flow is presumed to be the current capital account balance for the Limited Partners at March 31, 2025 and December 31, 2024. 

\*\* The above ratios are computed on the weighted average Limited Partners' capital for the three months ended March 31, 2025. Expenses include the Limited Partners' share of the management fees and other partnership expenses. Net investment income excludes realized and unrealized gains/(losses). Calculations have not been annualized. 

\*\*\* These ratios are net of the management fee waiver of 0.26%. 

---

| | |
|:---|:---|
| \*\*\*\* | The ratio is net of the incentive allocation waiver of 0.25%.  |

---

---

| | |
|:---|:---|
| \*\*\*\*\* | Portfolio turnover rate is calculated using the lesser of the year-to-date purchases or sales over the average of the invested assets at fair value. Average invested assets at fair value is being calculated for the three-months ended on March 31, 2025. Calculation is not annualized.  |

---

Individual Limited Partner ratios and internal rates of return may vary based on the management fees assessed to that partner.

**Note 9. Operating Segments** 

The Partnership reports segments in accordance with FASB Accounting Standards Update 2023-07, "Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). Under Topic 280, an operating segment is defined as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (the "CODM") to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The investment committee of the Management Company acts as the Partnership's CODM.

The Partnership operates through a single operating segment with a primary investment objective to seek to make loans to private middle market companies based primarily in the United States and Canada, including unitranche and stretch senior secured loans, first and second lien loans, and select investments in equity and other similar investments. The CODM monitors the performance of the Partnership to make decisions about resources to be allocated using key factors such as the Partnership's portfolio composition, as shown on the

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**March 31, 2025** 

**(unaudited)** 

Consolidated Schedule of Investments, the changes in partners' capital resulting from operations, as reported on the Consolidated Statement of Operations, and returns and expense ratios, as reported in Note 8 — Financial Highlights of the accompanying notes to the financial statements.

**Note 10. Subsequent Events** 

The General Partner has considered the effects, if any, of events occurring after the date of the Partnership's accompanying consolidated statement of assets, liabilities and partners' capital through June 16, 2025, the date the consolidated financial statements were issued.

On April 7, 2025, pursuant to a plan of conversion, a majority of the limited partners and the General Partner of the Partnership approved, among other things, the Partnership's plan to convert to a limited liability company ("LLC") and the election to be regulated as a BDC under the 1940 Act. On April 10, 2025, the Partnership converted to an LLC and elected to be regulated as a BDC under the Act of 1940.

The General Partner has concluded there are no other material items that warrant disclosure.

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##### [**Table of Contents**](#toc)
**Report of Independent Registered Public Accounting Firm** 

To the General Partner of Audax Private Credit Fund, LP and Subsidiaries

**Opinion on the Financial Statements** 

We have audited the accompanying consolidated statement of assets, liabilities and partners' capital of Audax Private Credit Fund, LP and Subsidiaries (the "Partnership"), including the consolidated schedule of investments, as of December 31, 2024, the related consolidated statements of operations, changes in partners' capital, and cash flows for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership at December 31, 2024, and the results of its operations, changes in its partners' capital, and its cash flows for the period from October 10, 2024 (Commencement of Operations) to December 31, 2024, in conformity with U.S. generally accepted accounting principles.

**Basis for Opinion** 

These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on the Partnership's financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted in the United States of America (GAAS). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Partnership is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of investments owned as of December 31, 2024, by correspondence with the custodians and others; when replies were not received from others, we performed other auditing procedures. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Ernst & Young LLP

We have served as the Partnership's auditor since 2024.

New York, New York

March 24, 2025

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Assets, Liabilities and Partners' Capital** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | |
|:---|:---|
|  **Assets** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investments at fair value: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliated investments (cost of $646,031,655 at December 31, 2024) | $650974766.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 31592264.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest receivable | 2399856.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Due from Management Company | 398305.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable from affiliates | 306938.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Receivable for loan repayment | 181269.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total assets** | $685853398.0 |
|  **Liabilities** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings under leverage facility, net | $340592475.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest payable | 3503024.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable to Management Company | 1087203.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable and accrued expenses | 190492.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payable for investments purchased | 186020.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities** | 345559214.0 |
|  Commitments and Contingencies (Note 7) |  |
|  **Partners' Capital** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General Partner | 4521350.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited Partners | 335772834.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total partners' capital** | 340294184.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total liabilities and partners' capital** | $685853398.0 |

---

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

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Operations** 

**For the Period from October 10, 2024 (Commencement of Operations) to December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | |
|:---|:---|
|  **Investment income** |  |
|  **Non-controlled/non-affiliated investments:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest income | $15148231 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total investment income | 15148231 |
|  **Expenses** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense and credit facility fees | 3503024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organizational expenses | 1571831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fees | 1413314 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Professional fees | 992145 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administration fees | 151360 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of deferred financing costs | 83333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment expenses | 12030 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other expenses | 69320 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total operating expenses | 7796357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense support | (2439409) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expense support reimbursement | 406568 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management fee waiver | (477471) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net expenses | 5286045 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Net investment income** | 9862186 |
|  **Realized and unrealized gains (losses) on investments** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gains (losses) : |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliated investments: | (792735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized loss | (792735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized gains (losses) : |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-controlled/non-affiliated investments | 4943111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gain | 4943111 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized gain on investments | 4150376 |
|  **Realized and unrealized loss on foreign currency:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized loss on foreign currency | (3097) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in unrealized loss on foreign currency | (179) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized and unrealized loss on foreign currency | (3276) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in partners' capital resulting from operations | $14009286 |

---

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

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Changes in Partners' Capital** 

**For the Period from October 10, 2024 (Commencement of Operations) to December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | |
|:---|:---|:---|:---|
|  | **General<br>Partner** | **Limited<br>Partners** | **Total**<br>**Partners'<br>Capital** |
|  **Balance, October 10, 2024** | $— | $— | $— |
|  (Commencement of Operations) |  |  |  |
|  Capital contributions | 3262848 | 323022050 | 326284898 |
|  Net investment income | 109494 | 9752692 | 9862186 |
|  Net realized losses | (7958) | (787874) | (795832) |
|  Net change in unrealized gains | 49429 | 4893503 | 4942932 |
|  Performance incentive allocation | 1107537 | (1107537) |  |
|  **Balance, December 31, 2024** | $**4521350** | $**335772834** | $**340294184** |

---

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

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Statement of Cash Flows** 

**For the Period from October 10, 2024 (Commencement of Operations) to December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | |
|:---|:---|
|  **Cash flows from operating activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in partners' capital resulting from operations | $14009286 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net increase in partners' capital resulting from operations used for operating 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized loss | 792735 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized gain | (4943111) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash interest income, including payment in-kind and original issue discount accretion | (430440) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amortization of financing costs | 83333 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in interest receivable | (2399856) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in due from Management Company | (398305) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in receivable from affiliates | (306938) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in receivable for loan repayment | (181269) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in interest payable | 3503024 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in payable to Management Company | 1087203 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in accounts payable and accrued expenses | 190492 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in payable for investments purchased | 186020 |
|  Investment Activity: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from disposition and repayments of investments | 29930154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase of investments | (676324104) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Investment Activity | (646393950) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used for operating activities | (635201776) |
|  **Cash flows from financing activities:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from capital contributions |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; General Partner | 3262848 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Limited Partners | 323022050 |
|  | 326284898 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Borrowings under leverage facility | 353509142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Repayments for leverage facility | (10500000) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payments of financing costs | (2500000) |
|  | 340509142 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities | 666794040 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net change in cash and cash equivalents | 31592264 |
|  **Cash and cash equivalents:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents, beginning of period |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents, end of period | $31592264 |
|  **Supplemental non-cash information:** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Payment-in-kind ("PIK") interest income | $222671 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments (a)<br>(b) (c) (d) (e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Aerospace & Defense* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blue Raven Solutions | (g) | Sr. Secured First Lien | S+ | 8.50%, 1.00% PIK | 14.28% | 10/10/2024 | 12/21/2026 | 10892417 | $10892417 | $10892417 |
|  |  |  |  |  |  |  |  |  | $10892417 | $10892417 |
|  *Capital Markets* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners |  | Sr. Secured First Lien | S+ | 5.25% | 9.76% | 10/10/2024 | 7/30/2029 | 24096204 | 24096204 | 24096204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cerity Partners |  | Delayed Draw Term Loan | S+ | 5.25% | 9.76% | 10/10/2024 | 7/30/2029 | 990644 | 990644 | 990644 |
|  |  |  |  |  |  |  |  |  | $25086848 | $25086848 |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.95% | 10/10/2024 | 4/11/2030 | 4299985 | 4191573 | 4299985 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir |  | Sr. Secured First Lien | S+ | 5.25% | 10.34% | 10/10/2024 | 1/26/2026 | 11597104 | 11597104 | 11597104 |
|  |  |  |  |  |  |  |  |  | $15788677 | $15897089 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service |  | Sr. Secured First Lien | S+ | 4.75% | 9.11% | 10/10/2024 | 12/22/2028 | 4753733 | 4753733 | 4753733 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group |  | Sr. Secured First Lien | S+ | 5.25% | 9.50% | 10/10/2024 | 11/16/2027 | 23266840 | 23266840 | 23266840 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; HR Green | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.87% | 10/10/2024 | 1/28/2030 | 5757111 | 5635771 | 5757111 |
|  |  |  |  |  |  |  |  |  | $33656344 | $33777684 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Novvia Group |  | Sr. Secured First Lien | S+ | 6.00% | 10.46% | 10/10/2024 | 12/23/2026 | 25782521 | 25782521 | 25782521 |
|  |  |  |  |  |  |  |  |  | $25782521 | $25782521 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (g) | Sr. Secured First Lien | S+ | 5.75% | 10.26% | 10/10/2024 | 12/22/2026 | 12493634 | 12251530 | 12300601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners | (g) | Delayed Draw Term Loan | S+ | 5.75% | 10.26% | 10/10/2024 | 12/22/2026 | 5884114 | 5736141 | 5793202 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kalkomey | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.58% | 10/10/2024 | 6/18/2031 | 17135800 | 16826310 | 17135800 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens |  | Sr. Secured First Lien | S+ | 5.50% - 6.50% | 10.84% | 10/10/2024 | 11/1/2029 | 15264401 | 15264401 | 15264401 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.96% | 10/10/2024 | 6/30/2028 | 14089493 | 14053258 | 13406875 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo | (g) | Delayed Draw Term Loan | S+ | 5.50% | 9.96% | 10/10/2024 | 6/30/2028 | 44898 | 44768 | 42724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree | (g) | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 10857404 | 10741494 | 10857404 |
|  |  |  |  |  |  |  |  |  | $74917902 | $74801007 |

---

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

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments—(Continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Energy Equipment & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allied Power Group | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.74% | 10/10/2024 | 5/16/2029 | 7169041 | 6999455 | 7169041 |
|  |  |  |  |  |  |  |  |  | $6999455 | $7169041 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert |  | Sr. Secured First Lien | S+ | 5.25% | 9.61% | 10/10/2024 | 6/30/2028 | 12559722 | 12559722 | 12559722 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions | (g) | Sr. Secured First Lien | S+ | 5.25% | 9.76% | 10/10/2024 | 2/26/2030 | 6755010 | 6666062 | 6755010 |
|  |  |  |  |  |  |  |  |  | $19225784 | $19314732 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group | (g) | Sr. Secured First Lien | S+ | 6.50% | 11.09% | 10/10/2024 | 12/24/2029 | 6105428 | 6043858 | 6035509 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip | (g) | Sr. Secured First Lien | S+ | 5.75% | 10.49% | 10/10/2024 | 11/24/2026 | 25338498 | 25199949 | 25338498 |
|  |  |  |  |  |  |  |  |  | $31243807 | $31374007 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Sr. Secured First Lien | S+ | 5.25% | 9.85% | 10/10/2024 | 11/6/2025 | 25270484 | 25270484 | 25270484 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel |  | Sr. Secured First Lien | S+ | 6.50% | 10.88% | 10/10/2024 | 8/2/2029 | 5912278 | 5912278 | 5912278 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; OrthoNebraska |  | Sr. Secured First Lien | S+ | 6.50% | 10.93% | 10/10/2024 | 7/31/2028 | 4819707 | 4819707 | 4819707 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shearwater Health |  | Sr. Secured First Lien | S+ | 5.00% | 9.48% | 10/10/2024 | 9/30/2025 | 10451742 | 10451742 | 10451742 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summit Spine |  | Sr. Secured First Lien | S+ | 5.00% | 9.46% | 10/10/2024 | 6/2/2027 | 17719496 | 17719496 | 17719496 |
|  |  |  |  |  |  |  |  |  | $64173707 | $64173707 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax |  | Sr. Secured First Lien | S+ | 5.33% - 6.00% | 9.87% | 10/10/2024 | 7/31/2026 | 14560937 | 14560937 | 14560937 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax |  | Delayed Draw Term Loan | S+ | 5.33% -6.00% | 9.87% | 10/10/2024 | 7/31/2026 | 8101218 | 8101218 | 8101218 |
|  |  |  |  |  |  |  |  |  | $22662155 | $22662155 |
|  *Insurance* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Sr. Secured First Lien | S+ | 6.25% -6.75% | 10.74% | 10/10/2024 | 4/28/2028 | 18224599 | 18224599 | 18224599 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Delayed Draw Term Loan | S+ | 6.25% -6.75% | 10.74% | 10/10/2024 | 4/28/2028 | 6975414 | 6975414 | 6975414 |
|  |  |  |  |  |  |  |  |  | $25200013 | $25200013 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Sr. Secured First Lien | S+ | 5.75% | 10.34% | 10/10/2024 | 3/10/2028 | 11269968 | 11269968 | 11269968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Delayed Draw Term Loan | S+ | 5.75% | 10.34% | 10/10/2024 | 3/10/2028 | 647094 | 647094 | 647094 |
|  |  |  |  |  |  |  |  |  | $11917062 | $11917062 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments—(Continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **APCF SPV I,<br>LLC (f)** | |  | | | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *IT Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allyant | (g) (i) | Sr. Secured First Lien | S+ | 5.50% | 10.00% | 10/10/2024 | 10/30/2026 | 22982482 | 22938897 | 22982482 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource |  | Sr. Secured First Lien | S+ | 5.25% | 9.92% | 10/10/2024 | 5/12/2028 | 8214836 | 8214836 | 8214836 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lighthouse |  | Sr. Secured First Lien | S+ | 5.00% | 9.48% | 10/10/2024 | 4/30/2027 | 21576210 | 21576210 | 21576210 |
|  |  |  |  |  |  |  |  |  | $52729943 | $52773528 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 9/6/2030 | 13605567 | 13605567 | 13605567 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Sr. Secured First Lien | S+ | 5.00% | 9.46% | 10/10/2024 | 11/22/2029 | 13880146 | 13880146 | 13880146 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Delayed Draw Term Loan | S+ | 5.00% | 9.46% | 10/10/2024 | 11/22/2029 | 3885716 | 3885716 | 3885716 |
|  |  |  |  |  |  |  |  |  | $31371429 | $31371429 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AIA Contract Documents |  | Sr. Secured First Lien | S+ | 5.25% | 9.94% | 10/10/2024 | 10/30/2026 | 19454772 | 19454772 | 19454772 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AmpliFi | (g) | Sr. Secured First Lien | S+ | 5.00% | 9.36% | 10/10/2024 | 4/23/2030 | 9571998 | 9340383 | 9571998 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology | (g) | Sr. Secured First Lien | S+ | 5.50% -6.50% | 10.66% | 10/10/2024 | 10/30/2028 | 15171291 | 15169353 | 15171291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology | (g) | Delayed Draw Term Loan | S+ | 5.50% -6.50% | 10.66% | 10/10/2024 | 10/30/2028 | 3400631 | 3400188 | 3400631 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unison Global |  | Sr. Secured First Lien | S+ | 5.00% | 9.37% | 10/10/2024 | 9/19/2028 | 14926422 | 14926422 | 14926422 |
|  |  |  |  |  |  |  |  |  | $62291118 | $62525114 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Sr. Secured First Lien | S+ | 5.75% | 10.34% | 10/10/2024 | 12/7/2028 | 7067565 | $7067565 | $7067565 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Delayed Draw Term Loan | S+ | 5.75% | 10.34% | 10/10/2024 | 12/7/2028 | 3679859 | 3679859 | 3679859 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety | (g) | Sr. Secured First Lien | S+ | 5.50% | 9.93% | 10/10/2024 | 12/3/2026 | 18870503 | 18695283 | 18750673 |
|  |  |  |  |  |  |  |  |  | $29442707 | $29498097 |
|  |  |  |  |  |  | **Total APCF SPV I, LLC** | **Total APCF SPV I, LLC** |  | $543381889 | $544216451 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **Audax Private Credit Subsidiary, LLC** | **Audax Private Credit Subsidiary, LLC** |  |  | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS** | | |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group<br> (g) (h) | Delayed Draw Term<br>Loan | S+ | 5.50% | 9.95% | 10/10/2024 | 4/11/2030 | 1317465 | $1301916 | $1317465 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group<br> (g) (h) | Revolving Credit<br>Facility | S+ | 5.50% | 9.95% | 10/10/2024 | 4/11/2030 | 213940 | 208627 | 213940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir | Revolving Credit Facility | S+ | 5.25% | 10.34% | 10/10/2024 | 1/26/2026 | 1565413 | 1565413 | 1565413 |
|  |  |  |  |  |  |  |  | $3075956 | $3096818 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service<br> (h) | Delayed Draw Term<br>Loan | S+ | 4.75% | 9.11% | 10/10/2024 | 12/22/2028 | 1661041 | 1661041 | 1661041 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group<br> (g) (h) | Delayed Draw Term Loan | S+ | 5.25% | 9.50% | 10/10/2024 | 11/16/2027 | 3016610 | 3011195 | 3016610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumming Group<br> (h) | Revolving Credit Facility | S+ | 5.25% | 9.50% | 10/10/2024 | 11/16/2027 | 314944 | 314944 | 314944 |
|  |  |  |  |  |  |  |  | $4987180 | $4992595 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Novvia Group<br> (h) | Revolving Credit Facility | S+ | 6.00% | 10.46% | 10/10/2024 | 12/23/2026 | 1653771 | 1653771 | 1653771 |
|  |  |  |  |  |  |  |  | $1653771 | $1653771 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners<br> (g) (h) | Revolving Credit Facility | S+ | 5.75% | 10.26% | 10/10/2024 | 12/22/2026 | 2446670 | 2419208 | 2408868 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens<br> (h) | Delayed Draw Term Loan | S+ | 5.50% - 6.50% | 10.84% | 10/10/2024 | 11/1/2029 | 2498591 | 2498591 | 2498591 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; RotoCo<br> (g) (h) | Revolving Credit Facility | S+ | 5.50% | 9.96% | 10/10/2024 | 6/30/2028 | 1298713 | 1295086 | 1235792 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree | Sr. Secured First Lien | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 868692 | 868692 | 868692 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 476266 | 476266 | 476266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SavATree<br> (g) (h) | Revolving Credit Facility | S+ | 5.00% | 9.33% | 10/10/2024 | 6/6/2031 | 119577 | 118292 | 119577 |
|  |  |  |  |  |  |  |  | $7676135 | $7607786 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert<br> (g) (h) | Delayed Draw Term Loan | S+ | 5.25% | 9.61% | 10/10/2024 | 6/30/2028 | 6229357 | 6225259 | 6229357 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions<br> (g) (h) | Delayed Draw Term Loan | S+ | 5.25% | 9.76% | 10/10/2024 | 2/26/2030 | 647570 | 639137 | 647570 |
|  |  |  |  |  |  |  |  | $6864396 | $6876927 |
|  *Health Care Equipment & Supplies* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group<br> (g) | Revolving Credit Facility | S+ | 6.50% | 11.09% | 10/10/2024 | 12/22/2028 | 1770973 | 1761531 | 1750691 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip<br> (g) (h) | Revolving Credit Facility | S+ | 5.75% | 10.49% | 10/10/2024 | 11/24/2026 | 1541450 | 1533376 | 1541450 |
|  |  |  |  |  |  |  |  | $3294907 | $3292141 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments (a)<br>(b) (c) (d) (e)** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** |  |  | | | | | | |
| **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | **SENIOR SECURED LOANS: NON-CONTROL/NON-AFFILIATE INVESTMENTS (continued)** | | |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision<br> (g) | Sr. Secured First Lien | S+ | 6.00%<br>(3.00% Cash +<br>3.00% PIK) | 10.50% | 10/10/2024 | 9/6/2025 | 13580859 | 6847245 | 5117977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; MDpanel<br> (h) | Delayed Draw Term Loan | S+ | 6.50% | 10.88% | 10/10/2024 | 8/2/2029 | 603724 | 603724 | 603724 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Summit Spine | Revolving Credit Facility | S+ | 5.00% | 9.46% | 10/10/2024 | 6/2/2027 | 2481375 | 2481375 | 2481375 |
|  |  |  |  |  |  |  |  | $9932344 | $8203076 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Taymax<br> (g) (h) | Revolving Credit Facility | S+ | 5.33% -6.00% | 9.87% | 10/10/2024 | 7/31/2026 | 1246284 | 1044215 | 1022672 |
|  |  |  |  |  |  |  |  | $1044215 | $1022672 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Power Digital<br> (h) | Revolving Credit Facility | S+ | 5.75% | 10.34% | 10/10/2024 | 3/10/2028 | 655469 | 655469 | 655469 |
|  |  |  |  |  |  |  |  | $655469 | $655469 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Goldensource<br> (h) | Revolving Credit Facility | S+ | 5.25% | 9.92% | 10/10/2024 | 5/12/2028 | 838258 | 838258 | 838258 |
|  |  |  |  |  |  |  |  | $838258 | $838258 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks<br> (g) | Sr. Secured First Lien | S+ | 6.50% | 10.98% | 10/10/2024 | 3/31/2027 | 10438717 | 7380215 | 10438717 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dwellworks (Tranche B-1)<br> (g) | Sr. Secured First Lien | Fixed -<br>18.00% | (Cash 9.00%,<br>PIK 9.00%) | 10.98% | 10/10/2024 | 3/31/2027 | 5568956 | 3973959 | 287327 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Foundation Source<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 10/10/2024 | 9/6/2030 | 2925025 | 2915475 | 2925025 |
|  |  |  |  |  |  |  |  | $14269649 | $13651069 |
|  *Software* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology<br> (g)<br>(h) | Revolving Credit Facility | S+ | 5.50% -6.50% | 10.66% | 10/10/2024 | 10/30/2028 | 848464 | 848409 | 848464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unison Global<br> (h) | Delayed Draw Term Loan | S+ | 5.00% | 9.37% | 10/10/2024 | 9/19/2028 | 613854 | 613854 | 613854 |
|  |  |  |  |  |  |  |  | $1462263 | $1462318 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group<br> (h) | Revolving Credit Facility | S+ | 5.75% | 10.34% | 10/10/2024 | 12/7/2028 | 1298124 | 1298124 | 1298124 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety<br> (g) (h) | Revolving Credit Facility | S+ | 5.50% | 9.93% | 10/10/2024 | 12/3/2026 | 1519317 | 1504071 | 1509670 |
|  |  |  |  |  |  |  |  | $2802195 | $2807794 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments (a)<br>(b) (c) (d) (e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | | |
|  *Aerospace & Defense* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Blue Raven Solutions |  | Class A Units |  |  |  |  |  | 1374300 | $— | $— |
|  |  |  |  |  |  |  |  |  | $— | $— |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ScentAir |  | Class A Units |  |  |  |  |  | 858937 | 806166 | 814332 |
|  |  |  |  |  |  |  |  |  | $806166 | $814332 |
|  *Construction & Engineering* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A1 Garage Door Service |  | Class A Common Units |  |  |  |  |  | 781 | 1368519 | 1654183 |
|  |  |  |  |  |  |  |  |  | $1368519 | $1654183 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Ned Stevens |  | Class A Capital Units |  |  |  |  |  | 1737 | 1902090 | 1878708 |
|  |  |  |  |  |  |  |  |  | $1902090 | $1878708 |
|  *Energy Equipment & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allied Power Group |  | Class A Units |  |  |  |  |  | 400281 | 400281 | 516362 |
|  |  |  |  |  |  |  |  |  | $400281 | $516362 |
|  *Food Products* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Florida Food Products |  | Common Units |  |  |  |  |  | 1536658 | 1530282 | 1257386 |
|  |  |  |  |  |  |  |  |  | $1530282 | $1257386 |
|  Health Care Equipment & Supplies |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The InterMed Group |  | Class A Preferred Units |  |  |  |  |  | 5699 | 291352 | 240544 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; USMed-Equip |  | Common Units |  |  |  |  |  | 13738 | 1010898 | 1208102 |
|  |  |  |  |  |  |  |  |  | $1302250 | $1448646 |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Class A Common Units |  |  |  |  |  | 1273295 | 471761 | 1032709 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Preferred Units |  |  |  |  |  | 1187627 | 1705127 | 1791450 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments (a)<br>(b) (c) (d) (e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of<br>Investment** | **Fair Value of**<br>**Investment** |
| **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | **Audax Private Credit Subsidiary, LLC<br>(continued)** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)<br>(continued)** | | |
| &nbsp;&nbsp;&nbsp;&nbsp; Avita Pharmacy |  | Junior Preferred Units |  |  |  |  |  | 22654 | 27131 | 28236 |
| &nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision |  | Preferred Units |  |  |  |  |  | 515362 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Hilco Vision |  | Senior Preferred Units |  |  |  |  |  | 50706 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; MDpanel |  | Class A Units |  |  |  |  |  | 764074 | 735554 | 721055 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shearwater Health |  | Class A Common Stock |  |  |  |  |  | 687 | 2072203 | 2105085 |
| &nbsp;&nbsp;&nbsp;&nbsp; Summit Spine |  | Class A Units |  |  |  |  |  | 1488825 | 3232016 | 4420005 |
|  |  |  |  |  |  |  |  |  | $8243792 | $10098540 |
|  *Insurance* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; SIAA (Alliance Holdings) |  | Common Units |  |  |  |  |  | 7635 | 1162945 | 1203878 |
|  |  |  |  |  |  |  |  |  | $1162945 | $1203878 |
|  *Internet Software & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Power Digital |  | Class L Common Units |  |  |  |  |  | 81934 | 852220 | 924955 |
|  |  |  |  |  |  |  |  |  | $852220 | $924955 |
|  *IT Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Allyant |  | Common Shares |  |  |  |  |  | 5 | 1533996 | 1253627 |
| &nbsp;&nbsp;&nbsp;&nbsp; Goldensource |  | Class A Membership Interests |  |  |  |  |  | 327445 | 441589 | 723460 |
| &nbsp;&nbsp;&nbsp;&nbsp; Lighthouse |  | LP Interests |  |  |  |  |  | 3519 | 7450164 | 9280900 |
| &nbsp;&nbsp;&nbsp;&nbsp; Voyatek |  | Class C LP Units |  |  |  |  |  | 1337 | 404003 | 399645 |
|  |  |  |  |  |  |  |  |  | $9829752 | $11657632 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Dwellworks |  | Preferred Units |  |  |  |  |  | 984915 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Class A Common |  |  |  |  |  | 1718 | 1896 | 2158 |
| &nbsp;&nbsp;&nbsp;&nbsp; Foundation Source |  | Class B Common |  |  |  |  |  | 1716159 | 1896144 | 2156311 |
|  |  |  |  |  |  |  |  |  | $1898040 | $2158469 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; PracticeTek |  | LP Interests |  |  |  |  |  | 1441373 | 1796905 | 1922662 |
| &nbsp;&nbsp;&nbsp;&nbsp; Tribute Technology |  | Class A-1 Units |  |  |  |  |  | 1570 | 1241560 | 1156272 |
|  |  |  |  |  |  |  |  |  | $3038465 | $3078934 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of Investment** | **Fair Value of**<br>**Investment** |
| **Audax Private Credit Subsidiary,<br>LLC (continued)** | **Audax Private Credit Subsidiary,<br>LLC (continued)** | **Audax Private Credit Subsidiary,<br>LLC (continued)** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | | |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; National Trench Safety |  | Common Units |  |  |  |  |  | 7161 | 642983 | 542945 |
|  |  |  |  |  |  |  |  |  | $642983 | $542945 |
|  |  |  |  | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | **Total Audax Private Credit Subsidiary, LLC** | $91534523 | $93395664 |
|  **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** |  |  |  |  |  |  |
|  **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE INVESTMENTS (j)** |  |  |
|  *Commercial Services & Supplies* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Russell Landscape Group |  | Class A Units |  |  |  |  |  | 5528 | $552762 | $500870 |
|  |  |  |  |  |  |  |  |  | $552762 | $500870 |
|  *Containers & Packaging* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Novvia Group |  | Common Units |  |  |  |  |  | 28290 | 650105 | 635716 |
|  |  |  |  |  |  |  |  |  | $650105 | $635716 |
|  *Diversified Consumer Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Heritage Partners |  | Series A Units |  |  |  |  |  | 695947 | 357387 | 341915 |
| &nbsp;&nbsp;&nbsp;&nbsp; Kalkomey |  | Class A Units |  |  |  |  |  | 116815 | 1168155 | 1174726 |
|  |  |  |  |  |  |  |  |  | $1525542 | $1516641 |
|  *Entertainment* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Backstage |  | Class A-3 Units |  |  |  |  |  | 5801 | 406596 | 2193342 |
|  |  |  |  |  |  |  |  |  | $406596 | $2193342 |
|  *Financial Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cherry Bekaert |  | Class A Units |  |  |  |  |  | 618019 | $1089101 | $1418624 |
| &nbsp;&nbsp;&nbsp;&nbsp; Prime Pensions |  | LP Interests |  |  |  |  |  | 668564 | 666607 | 593859 |
|  |  |  |  |  |  |  |  |  | $1755708 | $2012483 |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio<br>investments<br>(a) (b) (c) (d)<br>(e)** | **Footnote<br>Reference** | **Investment<br>Type** | **Index** | **Spread** | **Interest<br>Rate** | **Acquisition<br>Date** | **Maturity<br>Date** | **Par / Shares** | **Cost of Investment** | **Fair Value of**<br>**Investment** |
| **APCF Equity, LLC** | **APCF Equity, LLC** | **APCF Equity, LLC** | | | | | | | | |
| **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | **COMMON EQUITY AND PREFERRED SHARES: NON-CONTROL/NON-AFFILIATE<br>INVESTMENTS (j) (continued)** | | |
|  *Health Care Providers & Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; OrthoNebraska |  | LP Interests |  |  |  |  |  | 34285 | 436908 | 451417 |
|  |  |  |  |  |  |  |  |  | $436908 | $451417 |
|  *Hotels, Restaurants & Leisure* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taymax |  | Class A Units |  |  |  |  |  | 12729 | $2543230 | $2637034 |
|  |  |  |  |  |  |  |  |  | $2543230 | $2637034 |
|  *Professional Services* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Magna Legal Services |  | Class A Units |  |  |  |  |  | 14607 | 1577591 | 1803485 |
|  |  |  |  |  |  |  |  |  | $1577591 | $1803485 |
|  *Software* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; AIA Contract Documents |  | Common Units |  |  |  |  |  | 419925 | 607884 | 611544 |
|  |  |  |  |  |  |  |  |  | $607884 | $611544 |
|  *Trading Companies & Distributors* |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Industrial Service Group |  | Class A Units |  |  |  |  |  | 622 | 1058917 | 1000119 |
|  |  |  |  |  |  |  |  |  | $1058917 | $1000119 |
|  |  | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | **Total APCF Equity, LLC** | $11115243 | $13362651 |
|  |  | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | **Total Portfolio Investments** | $646031655 | $650974766 |

---

(a) All securities represent investments in companies based in the United States of America, unless otherwise noted.
All of these investments are subject to restrictions as to their resale or transfer.

(b) Unless otherwise indicated, all investments are non-controlled, non-affiliated investments. Non-controlled, non-affiliated investments are defined as investments in which the Company owns less than
5% of the portfolio company's outstanding voting securities and does not have the power to exercise control over the management or policies of such portfolio company. As of December 31, 2024, all of the company's investments were non-controlled, non-affiliated.

(c) All investments are exempt from registration under the Securities Act of 1933 (the "Securities Act"),
and may be deemed to be "restricted securities" under the Securities Act.

(d) Unless indicated otherwise, all investments are valued using Level 3 inputs within the FASB Accounting
Standard Codification ("ASC") Topic 820, "Fair Value Measurements and Disclosures" ("ASC 820") fair value hierarchy. Refer to Note 3 – Investments in the accompanying Notes to Financial Statements for additional
information.

(e) At December 31, 2024, there is no difference between the book and tax cost of investments and unrealized
values.

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

(f) Investments within APCF SPV I, LLC are pledged as collateral to the leverage facility. Refer to Note 7
– Commitments and Contingencies in the accompanying Notes to Financial Statements for additional information.

(g) Includes a portion of original issue discount and payment-in-kind, where applicable. The interest rate shown was the current rate as of December 31, 2024 and changes periodically.

(h) Position or portion thereof is an unfunded loan commitment. The unfunded loan commitment may be subject to a
commitment termination date that may expire prior to the maturity date stated. The negative cost, if applicable, is the result of the capitalized discount being greater than the principal amount outstanding on the loan. Refer to Note
7—Commitments and Contingencies in the accompanying Notes to Financial Statements for additional information. (i) The Company headquarters for Allyant is located in Canada.

(j) Equity invesments are non-income producing.

(k) The following shows the composition of the Partnership's portfolio at fair value by investment type and
industry as of December 31, 2024.

---

| | | |
|:---|:---|:---|
| **Industry** | **Sr. Secured First<br>Lien** | **% of NAV** |
|  Aerospace & Defense | $10892417 | 3.2% |
|  Capital Markets | 25086848 | 7.4% |
|  Commercial Services & Supplies | 18993907 | 5.6% |
|  Construction & Engineering | 38770279 | 11.4% |
|  Containers & Packaging | 27436292 | 8.1% |
|  Diversified Consumer Services | 82408793 | 24.2% |
|  Energy Equipment & Services | 7169041 | 2.1% |
|  Financial Services | 26191659 | 7.7% |
|  Health Care Equipment & Supplies | 34666148 | 10.2% |
|  Health Care Providers & Services | 72376783 | 21.3% |
|  Hotels, Restaurants & Leisure | 23684827 | 7.0% |
|  Insurance | 25200013 | 7.4% |
|  Internet Software & Services | 12572531 | 3.7% |
|  IT Services | 53611786 | 15.8% |
|  Professional Services | 45022498 | 13.2% |
|  Software | 63987432 | 18.8% |
|  Trading Companies & Distributors | 32305891 | 9.5% |
|  **Total** | $600377145 | 176.43% |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Consolidated Schedule of Investments (continued)** 

**December 31, 2024** 

**(Expressed in U.S. Dollars)** 

---

| | | |
|:---|:---|:---|
| **Industry** | **Common and<br>Preferred Equity** | **% of NAV** |
|  Commercial Services & Supplies | $1315202 | 0.4% |
|  Construction & Engineering | 1654183 | 0.5% |
|  Containers & Packaging | 635716 | 0.2% |
|  Diversified Consumer Services | 3395349 | 1.0% |
|  Energy Equipment & Services | 516362 | 0.2% |
|  Entertainment | 2193342 | 0.6% |
|  Financial Services | 2012483 | 0.6% |
|  Food Products | 1257386 | 0.4% |
|  Health Care Equipment & Supplies | 1448646 | 0.4% |
|  Health Care Providers & Services | 10549957 | 3.1% |
|  Hotels, Restaurants & Leisure | 2637034 | 0.8% |
|  Insurance | 1203878 | 0.4% |
|  Internet Software & Services | 924955 | 0.3% |
|  IT Services | 11657632 | 3.4% |
|  Professional Services | 3961954 | 1.2% |
|  Software | 3690478 | 1.1% |
|  Trading Companies & Distributors | 1543064 | 0.5% |
|  Total | $50597621 | 14.87% |

---

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

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements** 

**December 31, 2024** 

**Note 1. Organization** 

Audax Private Credit Fund, LP (the "Partnership"), a Delaware limited partnership was formed on July 23, 2024. The Partnership is expected to convert to a Delaware limited liability company and elect to be regulated as a business development company ("BDC") under the Investment Company Act of 1940 (the "1940 Act"). As of December 31, 2024, the Partnership is taxed as a partnership for U.S. federal income tax purposes. Subsequent to December 31, 2024 the Partnership intends to elect, and qualify annually thereafter, as a regulated investment company ("RIC") as defined under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").

The Partnership commenced operations on October 10, 2024, the effective closing date of the Master Transaction Agreement (the "MTA") between the Partnership and affiliated funds. The purpose of the Partnership is to seek to make loans to private middle market companies based primarily in the United States and Canada, including unitranche and stretch senior secured loans, first and second lien loans, and select investments in equity and other similar investments, which may be facilitated through an MTA.

On October 10, 2024, an MTA was effectuated whereas the Partnership agreed to purchase the portfolio assets of affiliated funds at an agreed upon purchase price to be settled by December 9, 2024. As of December 31, 2024, all assets approved for transfer were settled.

The General Partner of the Partnership is Audax Private Credit Business, LP ("the General Partner"). The Partnership is managed by Audax Management Company (NY), LLC (the "Management Company").

**Note 2. Significant Accounting Policies** 

***Basis of Presentation***

The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") pursuant to the requirements on ASC Topic 946, "*Financial Services — Investment Companies"* ("ASC 946"). In the opinion of management, all adjustments, which are of a normal recurring nature, considered necessary for the fair presentation of the consolidated financial statements for the periods presented, have been included.

***Use of Estimates***

The preparation of financial statements in conformity with GAAP requires management of the Partnership to make estimates and assumptions that affect reported amounts and disclosure in the consolidated financial statements. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ and these differences could be material.

***Consolidation***

As provided under Regulation S-X and ASC 946, the Partnership will not consolidate its investment in a company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Partnership. Accordingly, the Partnership consolidated the results of the Partnership's wholly-owned subsidiaries.

As of December 31, 2024, APCF SPV I, LLC (the "SPV"), Audax Private Credit Subsidiary, LLC, and APCF Equity, LLC, Delaware limited liability companies (the "Subsidiaries"), are wholly owned subsidiaries of the Partnership that are consolidated. All intercompany balances and transactions have been eliminated in consolidation. The SPV is the borrower under the Partnership's leverage facility (Note 7).

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

***Cash and Cash Equivalents***

Cash is stated at cost and cash equivalents are stated at fair value. The Partnership considers all highly liquid investments purchased with maturities of three months or less and money market mutual funds to be cash equivalents. No cash equivalent balances were held at December 31, 2024. The cash was not subject to any restrictions on withdrawal.

***Expenses***

The Partnership is responsible for investment expenses, legal expenses, auditing fees and other expenses related to the Partnership's operations. Such fees and expenses, including expenses initially incurred by the Management Company, may be reimbursed by the Partnership.

***Security Valuation***

The Partnership's investments are fair valued quarterly and at such other times as determined by the General Partner and are based on ASC 820 "Fair Value Measurements and Disclosures" as discussed in Note 3. The fair value assigned to these investments is based upon available information and does not necessarily represent the amount that ultimately might be realized upon sale or maturity. Because of the inherent uncertainty of the fair valuation process, this estimated fair value may differ significantly from the fair value that would have been used had an active market for the security existed, and the difference could be material.

***Interest Income Recognition***

Interest income, adjusted for amortization of premium, acquisition costs, and amendment fees and the accretion of original issue discount ("OID"), are recorded on an accrual basis to the extent that such amounts are expected to be collected. Generally, when a loan becomes 120 days or more past due, or if the Partnership's qualitative assessment indicates that the debtor is unable to service its debt or other obligations, the Partnership will place the loan on non-accrual status and cease recognizing interest income on that loan for financial reporting purposes until the borrower has demonstrated the ability and intent to pay contractual amounts due. However, the Partnership will remain contractually entitled to this interest. Interest payments received on non-accrual loans are restored to accrual status when past due principal and interest are paid and, in management's judgment, are likely to remain current or, due to a restructuring, the interest income is deemed to be collectible. As of December 31, 2024, the Partnership had no investments on non-accrual.

The Partnership may hold loans in the portfolio that contain OID and payment-in-kind ("PIK") provisions. The Partnership recognizes OID for loans originally issued at a discount as income over the life of the obligation based on an effective yield method. PIK interest, computed at the contractual rate specified in a loan agreement, is added to the principal balance of a loan and recorded as income over the life of the obligation. Therefore, the actual collection of PIK income may be deferred until the time of debt principal repayment.

As of December 31, 2024, the Partnership held 3 investments that had a PIK interest component. For the period commencing on October 10, 2024 and ending December 31, 2024, the Partnership accrued PIK income in the amount of $222,671.

As of December 31, 2024, the Partnership held $31,592,264 cash and cash equivalents. For the period commencing on October 10, 2024 and ending December 31, 2024, the Partnership did not earn interest income related to cash.

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

***Realized gain (loss) and net change in unrealized appreciation (depreciation)***

Investment transactions are accounted for on the trade date. Gain or loss on the sale of investments is calculated using the specific identification method. The Partnership measures realized gain or loss by the difference between the net proceeds from the repayment or sale and the amortized cost basis of the investment, without regard to unrealized appreciation or depreciation previously recognized. Net change in unrealized appreciation or depreciation will reflect the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized appreciation or depreciation, when a gain or loss is realized.

***Organizational Expenses***

The Partnership shall pay or reimburse the General Partner for organizational expenses in an aggregate amount not to exceed $2 million. To the extent the General Partner causes the Partnership to pay organizational expenses in excess of $2 million ("Excess Organizational Expenses"), such Excess Organizational Expenses shall reduce the management fee.

Organizational expenses incurred through December 31, 2024 associated with the establishment of the Partnership were $1,571,831, of which $1,309,859 was reimbursed by the Management Company as part of the expense reimbursement agreement described in the Related Party Fees disclosure.

***Income Taxes***

The Partnership is not subject to U.S. federal or state income taxes and, therefore, no provision for income taxes is included in the consolidated financial statements. Each partner that is otherwise subject to U.S. federal and state income taxes is required to report its allocable share of the Partnership's net income and gains or losses.

The General Partner has analyzed the Partnership's inventory of tax positions taken with respect to all applicable income tax issues for all open tax years (in each respective jurisdiction), and has concluded that any potential liabilities are immaterial and no provision for income tax is required in the Partnership's consolidated financial statements. As of December 31, 2024 all applicable tax years remain subject to examinations by U.S. Federal and State tax authorities.

The Partnership may be subject to foreign taxes on income, gains on investments or currency repatriation.

Subsequent to December 31, 2024, the Partnership intends to elect to be regulated as a BDC under the 1940 Act, as well as elected to be treated as a RIC under Subchapter M of the Code. As a RIC, the Partnership generally is not subject to corporate-level U.S. federal income taxes on any ordinary income or capital gains that it timely distributes as dividends for U.S. federal income tax purposes to its stockholders. To qualify to be treated as a RIC, the Partnership is required to meet certain source of income and asset diversification requirements, and to timely distribute dividends out of assets legally available for distributions to its stockholders of an amount generally equal to at least 90% of the sum of its net ordinary income and net short-term capital gains in excess of net long-term capital losses, if any (i.e., "investment company taxable income," determined without regard to any deduction for dividends paid), for each taxable year. The amount to be paid out as distributions to the Partnership's stockholders will be determined by the Board of Directors and based on management's estimate of the fiscal year earnings. Based on that estimate, the Partnership intends to make the requisite distributions to its stockholders, which will generally relieve the Partnership from corporate-level U.S. federal income taxes. Although the Partnership currently intends to distribute its net capital gains (i.e., net long-term capital gains in excess of net short-term capital losses), if any,

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

recognized in respect of each taxable year as dividends out of the Partnership's assets legally available for distribution, the Partnership in the future may decide to retain for investment and be subject to entity-level income tax on such net capital gains. Additionally, depending on the level of taxable income earned in a taxable year, the Partnership may choose to carry forward taxable income in excess of current year distributions into the next taxable year and incur a 4% excise tax on such income, as required. To the extent that the Partnership determines that its estimated current year annual taxable income will be in excess of estimated current year distributions, the Partnership will accrue an excise tax, if any, on estimated excess taxable income as such excess taxable income is earned.

***Foreign Currency***

The accounting records of the Partnership are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing rates of exchange at year end. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions. The portion of both realized and unrealized gains and losses on investments that results from the fluctuations in foreign currency exchange rates are separately disclosed in the accompanying statement of operations, when applicable.

***Deferred Financing Costs***

Deferred financing costs represent fees and other direct incremental costs incurred in connection with borrowings. These amounts are amortized over the contractual term of the leverage facility (Note 7).

***New Accounting Pronouncements***

In this reporting period, the Partnership adopted FASB Accounting Standards Update 2023-07, "Segment Reporting (Topic 280)—Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). Adoption of the new standard impacted financial statement disclosures only and did not affect the Partnership's financial position or the results of its operations. An operating segment is defined in Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker (the "CODM") to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The investment committee of the Management Company acts as the Partnership's CODM.

In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09")," which intends to improve the transparency of income tax disclosures. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024 and is to be adopted on a prospective basis with the option to apply retrospectively. The Partnership is currently assessing the impact of this guidance.

**Note 3. Investments** 

***Fair Value Measurements***

In accordance with ASC 820, the Partnership's investments' fair value is determined to be the price that would be received for an investment in a current sale, assuming an orderly transaction between willing market participants on the measurement date. This fair value definition focuses on exit price in the principal,

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

or most advantageous, market and prioritizes, within a measurement of fair value, the use of market-based inputs over entity-specific inputs. ASC 820 also establishes the three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of a financial instrument as of the measurement date.

The three levels of the fair value hierarchy under ASC 820, and its applicability to the Partnership's investments, are described below:

---

| | |
|:---|:---|
| Level 1 | Inputs that reflect unadjusted quoted prices in active markets that are accessible at the measurement date of identical, unrestricted assets. Equity securities are fair valued at the most recent sale price or official closing price reported on the exchange (U.S. or foreign) on which they trade and are generally actively listed equities. The General Partner does not adjust the quoted price for such instruments, even in situations where the Partnership holds a large position and a sale could reasonably impact the quoted price. |
| Level 2 | Inputs that are observable, either directly or indirectly, or quoted prices for similar assets, through corroboration with observable market data. These investments are generally traded in the over-the-counter market rather than on a securities exchange and/or are subject to transfer restrictions, or the valuation is adjusted to reflect illiquidity and/or non-transferability. |
| Level 3 | Inputs that are unobservable for the asset and reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset. Level 3 includes private investments that are supported by little or no market activity. Such investments may be adjusted to reflect illiquidity and/or no transferability. |

---

Investments have been classified within Level 3 as they have unobservable inputs, and they trade infrequently or not at all. Level 3 investments include privately held debt, common and preferred equity securities, warrants, and other privately issued securities. The General Partner utilizes a proprietary model to fair value such assets, which includes an analysis of a company's credit metrics, including, but not limited to, the following factors: changes in earnings before interest, taxes, depreciation, and amortization ("EBITDA"), market multiples for comparable companies (adjusted by management for differences between the investment and the referenced comparable), comparison of current company leverage levels and the interest rate to market terms, as well as length of time until maturity date of the Partnership's investment. In addition, the inputs used by the General Partner in estimating the fair value of the Partnership's Level 3 investments include the original transaction price, recent transactions in the same or similar instruments, completed or pending third-party transactions in the underlying investment or comparable issuers, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity or debt capital markets, and changes in financial ratios or cash flows.

The following table presents the Partnership's investments carried at fair value as of December 31, 2024, by caption on the Partnership's accompanying consolidated statements of assets and liabilities and by security type.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Fair Value of Assets as of December 31, 2024** | **Fair Value of Assets as of December 31, 2024** | **Fair Value of Assets as of December 31, 2024** | **Fair Value of Assets as of December 31, 2024** |
|  | **Level 1** | **Level 2** | **Level 3** | **Total** |
|  **Assets** |  |  |  |  |
|  Sr. Secured First Lien | $— | $— | $600377145 | $600377145 |
|  Common and Preferred Equity |  |  | 50597621 | 50597621 |
|  **Total** | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;— | $650974766 | $650974766 |

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

In accordance with ASC 820, the following table provides quantitative information about the Level 3 fair value measurements of the Partnership's investments as of December 31, 2024. The weighted average calculations in the table below are based on the fair value balances for all debt related calculations for the particular input.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair Value** | **Valuation Approach** | **Unobservable Input** | **Range** | **Average<sup>(2)</sup>** |
|  Sr. Secured First Lien | $584533124 | Analysis of trend in leverage | Maturity Modified Market Yield<sup>(1)</sup> | 5.28% - 11.67% | 8.36% |
|  Sr. Secured First Lien | $15844021 | Total Enterprise Value | EBITDA Multiple | 7.00x - 9.50x | 7.81x |
|  Common and Preferred Equity | $50597621 | Market Comparables | EBIDTA Multiple | 8.00x - 21.25x | 14.48x |
|  | $650974766 |  |  |  |  |

---

(1) Maturity Modified Market Yield is calculated based on the Market yield of the security relative to its actual
coupon and maturity date. The Market Yield is modified 75 basis points for every 1x delta in actual leverage versus market leverage of that issuer.

(2) Inputs are weighted based on the fair value of the investments included in the range.

Fair value measurements can be sensitive to changes in one or more of the valuation inputs. Changes in market yields, discounts rates, leverage, or EBITDA multiples, each in isolation, may change the fair value of certain of the Partnership's investments. Generally, an increase or decrease in market yields, discount rates or leverage or a decrease in EBITDA or EBITDA multiples may result in a corresponding decrease or increase, respectively, in the fair value of certain of the Partnership's investments.

The following tables provide the changes in fair value, broken out by security type, during the period commencing on October 10, 2024 and ending December 31, 2024 for all investments for which the Partnership determines fair value using unobservable (Level 3) factors.

---

| | | | |
|:---|:---|:---|:---|
| **Period Ended December 31, 2024** | **Sr. Secured First<br>Lien** | **Common and<br>Preferred Equity** | **Total** |
|  Fair Value as of October 10, 2024 | $— | $— | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers into Level 3 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfers out of Level 3 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Gains: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain (loss) <sup>(a)</sup>  | 14285 | (807020) | (792735) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net unrealized (depreciation) appreciation<sup>(b)</sup> | (1561482) | 6504593 | 4943111 |
|  New investments, repayments and settlements:<sup>(c)</sup>  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases | 630681737 | 45642367 | 676324104 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Settlements/repayments | (29187835) | (742319) | (29930154) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net amortization of premiums, PIK, discounts and fees | 430440 |  | 430440 |
|  **Fair Value as of December 31, 2024** | $600377145 | $50597621 | $650974766 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Included in net realized (loss) gain on the accompanying Statement of Operations for the period from
October 10, 2024 (Commencement of Operations) to December 31, 2024.

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Included in net unrealized appreciation (depreciation) on the accompanying Statement of Operations for the
period from October 10, 2024 (Commencement of Operations) to December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Includes increases in the cost basis of investments resulting from portfolio investments, the amortization of
discounts, and PIK, as well as decreases in the costs basis of investments resulting from principal repayments or sales, amortization of premiums and acquisition costs and other cost-basis adjustments.

There were no level 3 transfers during the period.

As reflected on the Consolidated Statement of Operations, the change in unrealized value attributable to investments still held at December 31, 2024 was $4,943,111.

***Investment Activities***

The Partnership held a total of 43 investments with an aggregate fair value of $650,974,766 as of December 31, 2024. During the period commencing on October 10, 2024 and ending December 31, 2024, the Partnership invested in 44 new investments for a combined cost of $676,324,104. The Partnership also received $1,368,230 in repayments from investments and $28,561,924 from investments sold during the period.

***Investment Concentrations***

As of December 31, 2024, the Partnership's investment portfolio consisted of investments in 43 companies located in 23 states across 19 different industries, with an aggregate fair value of $650,974,766. The five largest investments at fair value as of December 31, 2024 totaled $141,738,443, or 21.8% of the Partnership's total investment portfolio as of such date. As of December 31, 2024, the Partnership's average investment was $15,023,992 at cost.

The following table outlines the Partnership's investments by security type as of December 31, 2024:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** | **December 31, 2024** |
|  | **Cost** | **Percentage of<br>Total<br>Investments** | **Fair Value** | **Percentage of<br>Total<br>Investments** |
|  Sr. Secured First Lien | $601938627 | 93.17% | $600377145 | 92.23% |
|  Total Sr. Secured First Lien | 601938627 | 93.17% | 600377145 | 92.23% |
|  Common and Preferred Equity | 44093028 | 6.83% | 50597621 | 7.77% |
|  Total Common and Preferred Equity | 44093028 | 6.83% | 50597621 | 7.77% |
|  **Total Investments** | $646031655 | 100.00% | $650974766 | 100.00% |

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

Investments at fair value were included in the following geographic regions of the United States as of December 31, 2024:

---

| | | |
|:---|:---|:---|
| | **December 31, 2024** | **December 31, 2024** |
| <br>**Geographic Region** | **Fair Value** | **Percentage of<br>Total<br>Investments** |
|  Southeast | $201547371 | 31.0% |
|  Northeast | 184411024 | 28.3% |
|  West | 92875436 | 14.3% |
|  Southwest | 82956224 | 12.7% |
|  Midwest | 64948603 | 10.0% |
|  Other<sup>(1)</sup>  | 24236108 | 3.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Investments** | $650974766 | 100.0% |

---

(1) The company headquarters for Allyant is located in Canada.

The geographic region indicates the location of the headquarters of the Partnership's portfolio companies. A portfolio company may have a number of other business locations in other geographic regions.

***Investment Principal Repayments***

The following table summarizes the contractual principal repayments and maturity of the Partnership's investment portfolio by fiscal year, assuming no voluntary prepayments, as of December 31, 2024:

---

| | |
|:---|:---|
| **For the Fiscal Years Ending December 31** | **Amount** |
| 2025 | $49303085 |
| 2026 | 185931107 |
| 2027 | 84383146 |
| 2028 | 141059486 |
|  Thereafter | 154957586 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total contractual repayments** | $615634410 |
|  Adjustment to cost basis on debt investments (a) | (13695783) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Total Cost Basis of Debt Investments Held at December 31, 2024:** | $601938627 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Adjustments to cost basis related to unamortized balance of market discount on investments.

**Note 4. Related Party Transactions** 

***Management Fee***

Pursuant to the partnership agreement, the Partnership shall pay to the Management Company a quarterly fee as compensation for managing the affairs of the Partnership. Such fee shall be calculated as the product of (i) such Partner's pro rata share of the Net Asset Value multiplied by (ii) 0.3125% (i.e. 1.25% per annum). The Partners acknowledge and agree that the General Partner is expected to vary the management fee rate for one or more Limited Partners, and the General Partner is hereby authorized to do so.

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

As of each Fee Due Date, the Management Company will determine in good faith the Aggregate Asset Value and Net Asset Value on a preliminary basis (in each case, a "Preliminary Asset Value"). If the Preliminary Asset Value as of any Fee Due Date differs from the final Aggregate Asset Value or Net Asset Value as of such date as finally determined by the Management Company, the management fee payable on subsequent Fee Due Dates shall be adjusted on an equitable basis by the Management Company to account for such difference. Net Asset Value, Fee Due Date, and Aggregate Asset Value are referenced as defined terms in the partnership agreement.

For the period ended December 31, 2024, the net management fee was $935,843, all of which was payable as of December 31, 2024 and reflected in payable to Management Company in the accompanying consolidated statement of assets, liabilities, and partners' capital. For the period ended December 31, 2024, there was a management fee waiver of $477,471.

Each quarterly installment of the management fee calculated with respect to each Limited Partner shall be reduced, but not below zero, by such Limited Partner's pro rata share of all fee income received since the preceding Fee Due Date. In the event that the aggregate amount of fees referred to in the preceding sentence, together with fee income to be applied against the management fee, exceeds the management fee for the immediately succeeding quarterly period, such excess shall be carried forward to reduce the management fee payable in following quarterly periods.

In addition, the General Partner shall reduce the management fee payable in any quarterly period by the aggregate amount of all placement fees paid or reimbursed by the Partnership.

During the period ended December 31, 2024, there were no fee income or placement fee offsets applied.

Installments of the management fee payable for any period other than a full quarter (including the first management fee payment) shall be adjusted on a pro rata basis according to the actual number of days in such period.

***Administration Fee***

Pursuant to the partnership agreement, the Limited Partners will pay to the Management Company a quarterly fee of 0.025% of the Average Aggregate Asset Value for administration services. Adjustments to the administration fees shall be made in a manner similar to the adjustments made under the management fee to reflect any difference between the Preliminary Asset Value with respect to the applicable determination date and the final Aggregate Asset Value with respect to such date. The calculation for any period other than a full calendar year (including the first calendar year of the Partnership) shall be adjusted on a pro rata basis according to the actual number of days in such period.

During the period ended December 31, 2024, the Partnership incurred administration fees of $151,360, all of which was payable at December 31, 2024 and reflected in payable to Management Company in the accompanying consolidated statement of assets, liabilities, and partners' capital.

***Related Party Transactions***

In October 2024, the Partnership entered into a Master Transaction Agreement whereby the Partnership agreed to purchase a pro-rata strip of the portfolio assets of the affiliated funds at an agreed upon price. In connection with the agreement, the Partnership agreed to purchase the portfolio assets of the affiliated funds at an agreed upon purchase price with all transfers to be settled by December 9, 2024. Effective October 10, 2024, the Partnership agreed to purchase $672,696,781 of outstanding principal or equity interests at a purchase price of $667,862,181. As of December 31, 2024, all assets approved for transfer were settled.

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

***Related Party Fees***

The Partnership and the Management Company, together with Audax PDB Management Company, LLC (together, the "Adviser") have entered into an agreement whereby the Adviser may elect to pay a portion of the Partnership's expenses from time to time, which the Partnership will be obligated to reimburse the Adviser at a later date if certain conditions are met.

At such times as the Adviser determines, the Adviser may elect to pay certain expenses of the Partnership on the Partnership's behalf (each such payment, an "Expense Payment"). In making an Expense Payment, the Adviser will designate, as it deems necessary or advisable, what type of expense it is paying (including, whether it is paying organizational or offering expenses); provided that no portion of an Expense Payment will be used to pay any interest expense or distribution and/or servicing fees of the Partnership. Any Expense Payment that the Adviser has committed to pay shall be paid by the Adviser to the Partnership in any combination of cash or other immediately available funds no later than forty-five (45) days after such commitment was made in writing, and/or offset against amounts due from the Partnership to the Adviser or its affiliates.

The Partnership's obligation to make a reimbursement payment shall automatically become a liability of the Partnership on the last business day of the applicable calendar month or quarter, as applicable, except to the extent the Adviser has waived its right to receive such payment for the applicable month or quarter, as applicable. As of December 31, 2024, the Partnership incurred expenses of $2,439,409 related to this agreement, of which $2,032,841 was paid by the Adviser which may be reimbursed by the Partnership at a later date and is included in the accompanying consolidated statement of operations.

**Note 5. Partners' Capital** 

***Capital Commitments and Contributions***

The Partnership has received capital commitments of $373,737,374, of which $3,737,374 represents the General Partner's commitment and $370,000,000 represents Limited Partners' commitments.

At December 31, 2024, the Partnership has total unfunded capital commitments of $47,452,475 representing commitments of $474,525 by the General Partner and $46,977,950 by the Limited Partners.

Installments of committed capital are due from the partners upon at least ten business days' written notice by the General Partner.

***Allocation of Operating Income, Operating Expenses and Realized Capital Gains and Losses***

Investment proceeds from any investment are apportioned preliminarily among the partners in proportion to their sharing percentage with respect to the applicable investment. The amount allocated to the General Partner is distributed to the General Partner and the amount allocated to each Limited Partner is then distributed between the General Partner and such Limited Partners as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. First, 100% to such Limited Partner until such Limited Partner has received distributions equal to such Limited
Partner's aggregate capital contributions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Second, 100% to such Limited Partner until the unpaid preferred return of 6.0% of such Limited Partner is
reduced to zero

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Third, 100% to the General Partner until the General Partner has received aggregate distributions with respect
to such Limited Partner equal to 12.5% of the aggregate distributions made to all Partners, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Thereafter, 12.5% to the General Partner and 87.5% to such Limited Partner.

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**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

Carried interest allocated to the General Partner was $1,107,537, which has been reduced by a waived amount of $624,754 and is the amount that the General Partner would receive if all investments were sold at fair value at December 31, 2024.

***Distributions***

The amount and timing of all distributions of cash, securities or other property is at the sole discretion of the General Partner, provided that such cash distributions occur promptly after the end of each fiscal quarter, subject in each case to the availability of cash after all expenses have been paid and reserves have been set aside for anticipated liabilities, obligations and commitments of the Partnership. All distributions will follow the allocation methodology described above. During the period commencing on October 10, 2024 and ending December 31, 2024, the Partnership made no distributions.

***Withdrawals***

No Limited Partner has the right to withdraw from the Partnership.

**Note 6. Off-Balance Sheet Risk** 

The Partnership's investing activities expose it to various types of risk associated with the companies and markets in which the Partnership is invested, including, but not limited to:

***Credit Risk***

The Partnership invests its assets in debt instruments. Investment portfolios with debt securities are subject to credit risk, the risk that an issuer will default in the payment of principal and/or interest to the Partnership. A company's payment default could limit the amount of income the Partnership is able to realize from the investment.

***Leveraged Investments***

The General Partner utilizes leverage to finance portions of the Partnership's investments. Losses incurred with borrowed funds would cause partners' capital to decrease more significantly than without the use of borrowed funds. As of December 31, 2024, the Partnership had $343,009,141 outstanding on the Leverage Facility.

***Interest Rate Risk***

Changes in interest rates could negatively affect the fair value of the Partnership's investments, which could result in reduced earnings or losses and negatively affect cash flows. The Partnership has investments that are based on a floating rate for which decreases in interest rates will have a negative effect on yield.

***Illiquidity***

The Partnership's investments are long-term and illiquid. The valuations of the Partnership's investments may decline in response to certain events, including those directly involving the Partnership's portfolio companies; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and commodity price fluctuations. In addition, if the Partnership is required to liquidate all or a portion of its portfolio quickly, the Partnership may realize significantly less than the fair value at which it previously recorded those investments.

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

All of the companies in which the General Partner has invested are privately held. As a result, there will be no readily available secondary market for the Partnership's interests in its companies, and its interests in these companies are and will be subject to legal restrictions on transfer. Accordingly, the General Partner may not be able to realize liquidity for such investments in a timely manner. As a result, the fair values ascribed to the Partnership's assets by the General Partner may differ substantially from the fair values that would be ascribed to such assets by a third party.

***Concentration Risk***

The Partnership is invested in a limited number of companies and, as a consequence, the aggregate return of the Partnership may be materially and adversely affected by the unfavorable performance of even a single company.

***Indemnification***

The Partnership has agreed to indemnify the "Indemnified Parties," as defined in the partnership agreement, against certain losses and other liabilities to which they may become subject in connection with matters arising out of or in connection with the Partnership's business and affairs. The Partnership believes that it is unlikely that it will have to make material payment under these arrangements, and no liabilities related to these indemnifications have been recognized in the consolidated financial statements.

***Market Risk***

Economic activity has continued to accelerate across sectors and regions. Nevertheless, due to global supply chain issues, geopolitical events, a rise in energy prices and strong consumer demand as economies continue to reopen, inflation is showing signs of acceleration in the U.S. and globally. Inflation is likely to continue in the near to medium-term, particularly in the U.S., with the possibility that monetary policy may tighten in response.

**Note 7. Commitments and Contingencies** 

On October 10, 2024, the SPV entered into a Loan and Servicing Agreement ("LSA") with Wells Fargo Bank, National Association (the "Leverage Facility"). The LSA allows for an advance of up to $500,000,000 for loans acquired by the SPV. The Leverage Facility has a maturity date of October 10, 2029 and accrues interest at SOFR plus 2.15%. The average rate for the outstanding loans as of December 31, 2024 was 6.79% and weighted average outstanding balance for the period was $285,820,654. As of December 31, 2024, the Partnership had $340,592,475 outstanding on its leverage facility, net of deferred financing costs, which totaled $2,416,667. The Partnership incurred interest expense of $3,503,024 during the period.

At December 31, 2024, the carrying amount of the Partnership's secured borrowings approximated their fair value. The fair values of the Company's debt obligations are determined in accordance with ASC 820, which defines fair value in terms of the price that would be paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value of the Partnership's borrowings is estimated based upon market interest rates for the Partnership's own borrowings or entities with similar credit risk, adjusted for nonperformance risk, if any. As of December 31, 2024 Company's borrowings would be deemed to be Level 3, as defined in Note 3—Fair Value of Financial Instruments. 

------

##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements (continued)** 

**December 31, 2024** 

The Partnership may enter into certain credit agreements that include loan commitments where all or a portion of which may be unfunded. The Partnership is generally obligated to fund these unfunded loan commitments at the borrowers' discretion. Funded portions of credit agreements are presented in the accompanying consolidated schedule of portfolio investments. Unfunded loan commitments and funded portions of credit agreements are fair valued and unrealized appreciation or depreciation, if any, is included in the accompanying consolidated statement of assets, liabilities and partners' capital and accompanying consolidated statement of operations.

The following table summarizes the Partnership's significant contractual payment obligations as of December 31, 2024:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investment** | **Investment Type** | **Index()** | **Spread** | **Interest Rate** | **Maturity** | **Industry** | **December 31, 2024** |
|  Prime Pensions | Delayed Draw Term Loan | S+ | 5.25% | 9.76% | 2/26/2030 | Financial Services | $4586235 |
|  SavATree | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 6/6/2031 | Diversified Consumer Services | 3488723 |
|  Lighthouse | Revolving Credit Facility | S+ | 5.00% | 9.48% | 4/30/2027 | IT Services | 3440538 |
|  Kalkomey | Delayed Draw Term Loan | S+ | 5.25% | 9.58% | 6/18/2031 | Diversified Consumer Services | 3435749 |
|  HR Green | Delayed Draw Term Loan | S+ | 5.25% | 9.87% | 1/28/2030 | Construction & Engineering | 2788758 |
|  Kalkomey | Revolving Credit Facility | S+ | 5.25% | 9.58% | 6/18/2031 | Diversified Consumer Services | 2748599 |
|  Allyant | Revolving Credit Facility | S+ | 5.50% | 10.00% | 10/30/2026 | IT Services | 2576812 |
|  Foundation Source | Revolving Credit Facility | S+ | 5.00% | 9.33% | 9/6/2030 | Professional Services | 2576812 |
|  Cherry Bekaert | Revolving Credit Facility | S+ | 5.25% | 9.61% | 6/30/2028 | Financial Services | 2331260 |
|  Avita Pharmacy | Revolving Credit Facility | S+ | 5.25% | 9.85% | 11/6/2025 | Health Care Providers & Services | 2273658 |
|  MDpanel | Delayed Draw Term Loan | S+ | 6.50% | 10.88% | 8/2/2029 | Health Care Providers & Services | 2113634 |
|  AIA Contract Documents | Revolving Credit Facility | S+ | 5.25% | 9.94% | 10/30/2026 | Software | 1959650 |
|  SIAA (Alliance Holdings) | Revolving Credit Facility | S+ | 6.25% - 6.75% | 10.74% | 4/28/2028 | Insurance | 1908750 |
|  Magna Legal Services | Revolving Credit Facility | S+ | 5.00% | 9.46% | 11/22/2029 | Professional Services | 1859558 |
|  Ned Stevens | Revolving Credit Facility | S+ | 5.50% - 6.50% | 10.84% | 11/1/2029 | Diversified Consumer Services | 1794987 |
|  Allied Power Group | Delayed Draw Term Loan | S+ | 5.25% | 9.74% | 5/16/2029 | Energy Equipment & Services | 1501056 |
|  Cerity Partners | Revolving Credit Facility | S+ | 5.25% | 9.76% | 7/28/2028 | Capital Markets | 1472815 |
|  Power Digital | Revolving Credit Facility | S+ | 5.75% | 10.34% | 3/10/2028 | Internet Software & Services | 1392871 |
|  Foundation Source | Delayed Draw Term Loan | S+ | 5.00% | 9.33% | 9/6/2030 | Professional Services | 1357121 |
|  OrthoNebraska | Delayed Draw Term Loan | S+ | 6.50% | 10.93% | 7/31/2028 | Health Care Providers & Services | 1318661 |
|  SavATree | Revolving Credit Facility | S+ | 5.00% | 9.33% | 6/6/2031 | Diversified Consumer Services | 1315351 |
|  AmpliFi | Revolving Credit Facility | S+ | 5.00% | 9.36% | 4/23/2030 | Software | 1202512 |

---

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements—(Continued)** 

**December 31, 2024** 

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Investment** | **Investment Type** | **Index()** | **Spread** | **Interest Rate** | **Maturity** | **Industry** | **December 31, 2024** |
|  Allied Power Group | Revolving Credit Facility | S+ | 5.25% | 9.74% | 5/16/2029 | Energy Equipment & Services | 1200844 |
|  Prime Pensions | Revolving Credit Facility | S+ | 5.25% | 9.76% | 2/26/2030 | Financial Services | 1047086 |
|  Cumming Group | Revolving Credit Facility | S+ | 5.25% | 9.50% | 11/16/2027 | Construction & Engineering | 997322 |
|  Shearwater Health | Revolving Credit Facility | S+ | 5.00% | 9.48% | 9/30/2025 | Health Care Providers & Services | 944028 |
|  Unison Global | Delayed Draw Term Loan | S+ | 5.00% | 9.37% | 9/19/2028 | Software | 913146 |
|  Russell Landscape Group | Delayed Draw Term Loan | S+ | 5.50% | 9.95% | 4/11/2030 | Commercial Services & Supplies | 821531 |
|  Tribute Technology | Revolving Credit Facility | S+ | 5.50% - 6.50% | 10.66% | 10/30/2028 | Software | 801327 |
|  USMed-Equip | Revolving Credit Facility | S+ | 5.75% | 10.49% | 11/24/2026 | Health Care Equipment & Supplies | 794080 |
|  Cumming Group | Delayed Draw Term Loan | S+ | 5.25% | 9.50% | 11/16/2027 | Construction & Engineering | 791007 |
|  A1 Garage Door Service | Revolving Credit Facility | S+ | 4.75% | 9.11% | 12/22/2028 | Construction & Engineering | 788740 |
|  RotoCo | Revolving Credit Facility | S+ | 5.50% | 9.96% | 6/30/2028 | Diversified Consumer Services | 762736 |
|  Taymax | Revolving Credit Facility | S+ | 5.33% - 6.00% | 9.87% | 7/31/2026 | Hotels, Restaurants & Leisure | 712093 |
|  MDpanel | Revolving Credit Facility | S+ | 6.50% | 10.88% | 8/2/2029 | Health Care Providers & Services | 680354 |
|  OrthoNebraska | Revolving Credit Facility | S+ | 6.50% | 10.93% | 7/31/2028 | Health Care Providers & Services | 659331 |
|  Ned Stevens | Delayed Draw Term Loan | S+ | 5.50% - 6.50% | 10.84% | 11/1/2029 | Diversified Consumer Services | 478353 |
|  A1 Garage Door Service | Delayed Draw Term Loan | S+ | 4.75% | 9.11% | 12/22/2028 | Construction & Engineering | 478055 |
|  Goldensource | Revolving Credit Facility | S+ | 5.25% | 9.92% | 5/12/2028 | IT Services | 471520 |
|  Russell Landscape Group | Revolving Credit Facility | S+ | 5.50% | 9.95% | 4/11/2030 | Commercial Services & Supplies | 427881 |
|  National Trench Safety | Revolving Credit Facility | S+ | 5.50% | 9.93% | 12/3/2026 | Trading Companies & Distributors | 283502 |
|  Novvia Group | Revolving Credit Facility | S+ | 6.00% | 10.46% | 12/23/2026 | Containers & Packaging | 272953 |
|  Cherry Bekaert | Delayed Draw Term Loan | S+ | 5.25% | 9.61% | 6/30/2028 | Financial Services | 209847 |
|  Industrial Service Group | Revolving Credit Facility | S+ | 5.75% | 10.34% | 12/7/2028 | Trading Companies & Distributors | 193973 |
|  Heritage Partners | Revolving Credit Facility | S+ | 5.75% | 10.26% | 12/22/2026 | Diversified Consumer Services | 156170 |
|  |  |  |  |  |  | **Total Unfunded Commitments** | $64329989 |

---

**Note 8. Financial Highlights** 

The following is a schedule of financial highlights for the period commencing on October 10, 2024 and ending December 31, 2024.

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##### [**Table of Contents**](#toc)
**Audax Private Credit Fund, LP and Subsidiaries** 

**Notes to Consolidated Financial Statements—(Continued)** 

**December 31, 2024** 

---

| | |
|:---|:---|
|  | **Limited Partners** |
|  **Internal rate of return, since inception\*:** |  |
|  Internal rate of return through December 31, 2024 | 32.75% |
|  **Ratios to average Partners' capital\*\*:** |  |
|  Net investment income | 3.68% |
|  Total expenses, before incentive allocation\*\*\* | 1.98% |
|  Incentive allocation\*\*\*\* | 0.42% |
|  Total expenses, including incentive allocation\*\*\* | 2.40% |
|  Portfolio turnover rate\*\*\*\*\* | 4.52% |

---

\* The calculation of the internal rate of return assumes that contributions are made on the date that each capital call is due, and distributions are made on the actual date of distribution. The terminal cash flow is presumed to be the current capital account balance for the Limited Partners at December 31, 2024. 

\*\* The above ratios are computed on the weighted average Limited Partners' capital for the period ended December 31, 2024. Expenses include the Limited Partners' share of the management fees and other partnership expenses. Net investment income excludes realized and unrealized gains/(losses). Calculations have not been annualized. 

\*\*\* These ratios include the impact of the expense support agreement in which Audax Management Company supported 0.77% of expenses. Additionally, the ratios are net of the management fee waiver of 0.18%. 

---

| | |
|:---|:---|
| \*\*\*\* | The ratio is net of the incentive allocation waiver of 0.24%.  |

---

\*\*\*\*\* Portfolio turnover rate is calculated using the lesser of the year-to-date purchases or sales over the average of the invested assets at fair value. Average invested assets at fair value is being calculated from commencement of operations.

Individual Limited Partner ratios and internal rates of return may vary based on the management fees assessed to that partner.

**Note 9. Operating Segments** 

The Partnership operates through a single operating segment with a primary investment objective to seek to make loans to private middle market companies based primarily in the United States and Canada, including unitranche and stretch senior secured loans, first and second lien loans, and select investments in equity and other similar investments. The CODM monitors the performance of the Partnership to make decisions about resources to be allocated using key factors such as the Partnership's portfolio composition, as shown on the Consolidated Schedule of Investments, the changes in partners' capital resulting from operations, as reported on the Consolidated Statement of Operations, and returns and expense ratios, as reported in Note 8- Financial Highlights of the accompanying notes to the financial statements.

**Note 10. Subsequent Events** 

The General Partner has considered the effects, if any, of events occurring after the date of the Partnership's accompanying consolidated statement of assets, liabilities and partners' capital through March 24, 2025, the date the consolidated financial statements were issued.

On February 24, 2025, the Partnership closed on an additional $193,939,394 of commitments, of which $192,000,000 represents commitments by Limited Partners and $1,939,394 represents commitments by the General Partner.

The General Partner has concluded there are no other material items that warrant disclosure.

## Exhibit 10.9

**Exhibit 10.9** 

**LOAN AND SERVICING AGREEMENT** 

by and among

**AUDAX MANAGEMENT COMPANY (NY), LLC,** 

as the Collateral Manager

**APCF SPV I, LLC,** 

as the Borrower

**AUDAX PRIVATE CREDIT FUND, LP,** 

as the Equityholder

**EACH OF THE CONDUIT LENDERS AND INSTITUTIONAL LENDERS** 

**FROM TIME TO TIME PARTY HERETO,** 

as the Lenders

**EACH OF THE LENDER AGENTS FROM TIME TO TIME PARTY HERETO,** 

as the Lender Agents

**WELLS FARGO BANK, NATIONAL ASSOCIATION,** 

as the Administrative Agent,

**WELLS FARGO BANK, NATIONAL ASSOCIATION,** 

as the Swingline Lender

and

**COMPUTERSHARE TRUST COMPANY, N.A.,** 

as the Collateral Agent and as the Collateral Custodian

Dated as of October 10, 2024

------

**TABLE OF CONTENTS** 

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| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE I. DEFINITION | ARTICLE I. DEFINITION | 2 |
| Section 1.1. | Certain Defined Terms | 2 |
| Section 1.2. | Other Terms | 53 |
| Section 1.3. | Computation of Time Periods | 53 |
| Section 1.4. | Interpretation | 53 |
| ARTICLE II. ADVANCES | ARTICLE II. ADVANCES | 55 |
| Section 2.1. | Advances and Swingline Advances | 55 |
| Section 2.2. | Procedures for Advances and Swingline Advances by the Lenders | 56 |
| Section 2.3. | Reduction of the Facility Amount; Mandatory and Optional Repayments | 58 |
| Section 2.4. | Determination of Interest | 59 |
| Section 2.5. | [Reserved] | 60 |
| Section 2.6. | Principal Repayments | 60 |
| Section 2.7. | Interest Settlement Procedures before the Default Period | 60 |
| Section 2.8. | Principal Settlement Procedures before the Default Period | 61 |
| Section 2.9. | Settlement Procedures during the Default Period | 63 |
| Section 2.10. | Collections and Allocations | 64 |
| Section 2.11. | Payments, Computations, Etc. | 65 |
| Section 2.12. | Collateral Assignment of Agreements | 66 |
| Section 2.13. | Fees | 66 |
| Section 2.14. | Increased Costs; Capital Adequacy; Illegality | 67 |
| Section 2.15. | Taxes | 69 |
| Section 2.16. | Affiliate Transactions | 72 |
| Section 2.17. | Substitution and Transfer of Loans | 72 |
| Section 2.18. | Optional Sales | 75 |
| Section 2.19. | Discretionary Sales | 76 |
| Section 2.20. | Instructions to the Collateral Agent | 80 |
| Section 2.21. | Refunding of Swingline Advances | 80 |
| Section 2.22. | Defaulting Lenders | 81 |
| Section 2.23. | Mitigation Obligations; Replacement of Lender | 83 |
| ARTICLE III. CONDITIONS TO CLOSING ADVANCES | ARTICLE III. CONDITIONS TO CLOSING ADVANCES | 84 |
| Section 3.1. | Conditions to Closing and Initial Advance | 84 |
| Section 3.2. | Conditions Precedent to All Advances | 86 |
| Section 3.3. | Advances Do Not Constitute a Waiver | 88 |
| Section 3.4. | Custodianship; Transfer of Loans and Permitted Investments | 88 |

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**TABLE OF CONTENTS** 

(continued)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE IV. REPRESENTATIONS AND WARRANTIES | ARTICLE IV. REPRESENTATIONS AND WARRANTIES | 90 |
| Section 4.1. | Representations and Warranties of the Borrower | 90 |
| Section 4.2. | Representations and Warranties of the Borrower Relating to the Agreement and the Collateral | 102 |
| Section 4.3. | Representations and Warranties of the Collateral Manager | 103 |
| Section 4.4. | Representations and Warranties of the Collateral Agent | 108 |
| Section 4.5. | Representations and Warranties of the Collateral Custodian | 108 |
| ARTICLE V. GENERAL COVENANTS | ARTICLE V. GENERAL COVENANTS | 109 |
| Section 5.1. | Affirmative Covenants of the Borrower | 109 |
| Section 5.2. | Negative Covenants of the Borrower | 114 |
| Section 5.3. | Affirmative Covenants of the Collateral Manager | 117 |
| Section 5.4. | Negative Covenants of the Collateral Manager | 121 |
| Section 5.5. | Affirmative Covenants of the Collateral Agent | 123 |
| Section 5.6. | Negative Covenants of the Collateral Agent | 123 |
| Section 5.7. | Affirmative Covenants of the Collateral Custodian | 123 |
| Section 5.8. | Negative Covenants of the Collateral Custodian | 124 |
| ARTICLE VI. ADMINISTRATION AND SERVICING OF CONTRACTS | ARTICLE VI. ADMINISTRATION AND SERVICING OF CONTRACTS | 124 |
| Section 6.1. | Designation of the Collateral Manager | 124 |
| Section 6.2. | Duties of the Collateral Manager | 125 |
| Section 6.3. | Authorization of the Collateral Manager | 127 |
| Section 6.4. | Collection of Payments; Accounts | 128 |
| Section 6.5. | Realization Upon Certain Loans | 131 |
| Section 6.6. | Collateral Management Compensation | 133 |
| Section 6.7. | Payment of Certain Expenses by Collateral Manager | 133 |
| Section 6.8. | Reports | 133 |
| Section 6.9. | Annual Statement as to Compliance | 135 |
| Section 6.10. | Annual Independent Public Accountant's Review of Collateral Management Reports | 135 |
| Section 6.11. | The Collateral Manager Not to Resign | 136 |
| Section 6.12. | Collateral Manager Defaults | 136 |
| Section 6.13. | Appointment of Successor Collateral Manager | 137 |
| ARTICLE VII. THE COLLATERAL AGENT | ARTICLE VII. THE COLLATERAL AGENT | 139 |
| Section 7.1. | Designation of the Collateral Agent | 139 |
| Section 7.2. | Duties of the Collateral Agent | 139 |
| Section 7.3. | Merger or Consolidation | 142 |
| Section 7.4. | Collateral Agent Compensation | 142 |

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**TABLE OF CONTENTS** 

(continued)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| Section 7.5. | Collateral Agent Removal | 143 |
| Section 7.6. | Limitation on Liability | 143 |
| Section 7.7. | Collateral Agent Resignation | 144 |
| ARTICLE VIII. THE COLLATERAL CUSTODIAN | ARTICLE VIII. THE COLLATERAL CUSTODIAN | 145 |
| Section 8.1. | Designation of Collateral Custodian | 145 |
| Section 8.2. | Duties of Collateral Custodian | 145 |
| Section 8.3. | Merger or Consolidation | 149 |
| Section 8.4. | Collateral Custodian Compensation | 149 |
| Section 8.5. | Collateral Custodian Removal | 149 |
| Section 8.6. | Limitation on Liability | 149 |
| Section 8.7. | The Collateral Custodian Resignation | 151 |
| Section 8.8. | Release of Documents | 151 |
| Section 8.9. | Return of Required Loan Documents | 152 |
| Section 8.10. | Access to Certain Documentation and Information Regarding the Collateral; Audits | 153 |
| Section 8.11. | Bailment | 153 |
| ARTICLE IX. SECURITY INTEREST | ARTICLE IX. SECURITY INTEREST | 153 |
| Section 9.1. | Grant of Security Interest | 153 |
| Section 9.2. | Release of Lien on Collateral | 154 |
| Section 9.3. | Further Assurances | 155 |
| Section 9.4. | Remedies | 155 |
| Section 9.5. | Waiver of Certain Laws | 155 |
| Section 9.6. | Power of Attorney | 155 |
| ARTICLE X. TERMINATION EVENTS | ARTICLE X. TERMINATION EVENTS | 156 |
| Section 10.1. | Termination Events | 156 |
| Section 10.2. | Remedies | 158 |
| ARTICLE XI. INDEMNIFICATION | ARTICLE XI. INDEMNIFICATION | 160 |
| Section 11.1. | Indemnities by the Borrower | 160 |
| Section 11.2. | Indemnities by the Collateral Manager | 164 |
| Section 11.3. | After-Tax Basis | 166 |
| ARTICLE XII. THE ADMINISTRATIVE AGENT AND LENDER AGENTS | ARTICLE XII. THE ADMINISTRATIVE AGENT AND LENDER AGENTS | 166 |
| Section 12.1. | The Administrative Agent | 166 |
| Section 12.2. | Additional Agent | 170 |
| Section 12.3. | Erroneous Payments | 172 |

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**TABLE OF CONTENTS** 

(continued)

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| ARTICLE XIII. MISCELLANEOUS | ARTICLE XIII. MISCELLANEOUS | 174 |
| Section 13.1. | Amendments and Waivers | 174 |
| Section 13.2. | Notices, Etc. | 176 |
| Section 13.3. | Ratable Payments | 177 |
| Section 13.4. | No Waiver; Remedies | 177 |
| Section 13.5. | Binding Effect; Benefit of Agreement | 177 |
| Section 13.6. | Term of this Agreement | 177 |
| Section 13.7. | Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue, Service of Process | 178 |
| Section 13.8. | Waiver of Jury Trial | 178 |
| Section 13.9. | Costs and Expenses | 178 |
| Section 13.10. | No Proceedings | 179 |
| Section 13.11. | Recourse Against Certain Parties | 179 |
| Section 13.12. | Protection of Right, Title and Interest in the Collateral; Further Action Evidencing Advances | 181 |
| Section 13.13. | Confidentiality | 182 |
| Section 13.14. | Execution in Counterparts; Severability; Integration | 184 |
| Section 13.15. | Waiver of Setoff | 184 |
| Section 13.16. | Assignments by the Lenders | 185 |
| Section 13.17. | Heading and Exhibits | 187 |
| Section 13.18. | Non-Confidentiality of Tax Treatment | 187 |
| Section 13.19. | Intent of the Parties | 187 |
| Section 13.20. | Recognition of the U.S. Special Resolution Regimes | 187 |

---

-iv-

------

**<u>EXHIBITS</u>**

---

| | |
|:---|:---|
| EXHIBIT A-1 | Form of Borrowing Notice (Funding Request) |
| EXHIBIT A-2 | Form of Repayment Notice (Reduction of Advances Outstanding/Facility Amount) |
| EXHIBIT A-3 | Form of Reinvestment Notice (Reinvestment of Principal Collections) |
| EXHIBIT A-4 | Form of Borrowing Base Certificate |
| EXHIBIT A-5 | Form of Approval Notice |
| EXHIBIT B | [Reserved] |
| EXHIBIT C | Form of Collateral Management Report |
| EXHIBIT D-1 | Form of Officer's Certificate as to Solvency (APCF SPV I, LLC) |
| EXHIBIT D-2 | Form of Officer's Certificate as to Solvency (Audax Management Company (NY), LLC) |
| EXHIBIT D-3 | Form of Officer's Certificate as to Solvency (Audax Private Credit Fund, LP) |
| EXHIBIT E-1 | Form of Officer's Closing Certificate (APCF SPV I, LLC) |
| EXHIBIT E-2 | Form of Officer's Closing Certificate (Audax Management Company (NY), LLC) |
| EXHIBIT E-3 | Form of Officer's Closing Certificate (Audax Private Credit Fund, LP) |
| EXHIBIT F-1 | Form of Power of Attorney (APCF SPV I, LLC) |
| EXHIBIT F-2 | Form of Power of Attorney (Audax Management Company (NY), LLC) |
| EXHIBIT G | Form of Release of Required Loan Documents |
| EXHIBIT H | Form of Assignment of Required Loan Documents |
| EXHIBIT I | Form of Collateral Manager's Certificate |
| EXHIBIT J | Form of Transferee Letter |
| EXHIBIT K | Form of Joinder Supplement |
| EXHIBIT L | Form of Loan Checklist |
| EXHIBIT M | Form of Notice and Request for Consent |

---

-v-

------

**<u>SCHEDULES</u>**

---

| | |
|:---|:---|
| SCHEDULE I | Condition Precedent Documents |
| SCHEDULE II | Location of Required Loan Documents |
| SCHEDULE III | Agreed-Upon Procedures For Independent Public Accountants |

---

**<u>ANNEXES</u>**

ANNEX A Addresses for Notices <br> ANNEX B Commitments

-vi-

------

**<u>LOAN AND SERVICING AGREEMENT</u>**

**THIS LOAN AND SERVICING AGREEMENT** (as amended, modified, waived, supplemented, restated or replaced from time to time, this "<u>Agreement</u>") is made as of October 10, 2024 by and among:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1) AUDAX MANAGEMENT COMPANY (NY), LLC**, a Delaware limited liability company, as collateral manager (together with its successors and assigns in such capacity, the "<u>Collateral Manager</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2) APCF SPV I, LLC**, a Delaware limited liability company, as the borrower (together with its successors and assigns in such capacity, the "<u>Borrower</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3) AUDAX PRIVATE CREDIT FUND, LP**, a Delaware limited partnership, as the equityholder (together with its successors and assigns in such capacity, the "<u>Equityholder</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4) EACH OF THE CONDUIT LENDERS FROM TIME TO TIME PARTY HERETO** (together with its respective successors and assigns in such capacity, each a "<u>Conduit Lender</u>" and collectively, the "<u>Conduit Lenders</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5) EACH OF THE INSTITUTIONAL LENDERS FROM TIME TO TIME PARTY HERETO** (together with its respective successors and assigns in such capacity, each an "<u>Institutional Lender</u>," collectively, the "<u>Institutional Lenders</u>" and, together with the Conduit Lenders and the Swingline Lender, the "<u>Lenders</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6) WELLS FARGO BANK, NATIONAL ASSOCIATION**, a national banking association, not in its individual capacity but solely as the swingline lender (together with its successors and assigns in such capacity, the "<u>Swingline Lender</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(7) EACH OF THE LENDER AGENTS FROM TIME TO TIME PARTY HERETO** (together with its respective successors and assigns in such capacity, each a "<u>Lender Agent</u>" and collectively, the "<u>Lender Agents</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(8) WELLS FARGO BANK, NATIONAL ASSOCIATION**, a national banking association (together with its successors and assigns, "<u>Wells Fargo</u>"), as the administrative agent for the Lender Agents hereunder (together with its successors and assigns in such capacity, the "<u>Administrative Agent</u>"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(9) COMPUTERSHARE TRUST COMPANY, N.A.**, a national banking association ("<u>Computershare</u>"), not in its individual capacity but solely as the collateral agent (together with its successors and assigns in such capacity, the "<u>Collateral Agent</u>"), and not in its individual capacity but solely as the collateral custodian (together with its successors and assigns in such capacity, the "<u>Collateral Custodian</u>").

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**<u>PRELIMINARY STATEMENT</u>**

**WHEREAS**, the Lenders have agreed on the terms and conditions set forth herein, to provide a secured revolving credit facility which shall provide for Advances and Swingline Advances from time to time in an aggregate principal amount not to exceed the Aggregate Maximum Availability. The proceeds of the Advances and Swingline Advances will be used to finance the Borrower's origination of Loans, or acquisition (i) on a "true contribution" basis, of Loans pursuant to the Contribution Agreement and (ii) on a "true sale" basis, of Loans which the Collateral Manager directs the Borrower to acquire from a third party seller, in each case as approved by the Administrative Agent. Accordingly, the parties agree as follows:

**ARTICLE I.** 

**DEFINITION** 

**Section 1.1. <u>Certain Defined Terms</u>**.

Certain capitalized terms used throughout this Agreement are defined in this <u>Section</u> <u>1.1</u>. As used in this Agreement and its schedules, exhibits and other attachments, unless the context requires a different meaning, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

"<u>1940</u> <u>Act</u>": The Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder.

"<u>Account</u>": Any of the Collection Account, the Principal Collections Account, the Interest Collections Account, the Unfunded Exposure Account and any sub-accounts thereof deemed appropriate or necessary by the Administrative Agent or the Collateral Agent after consultation with the Borrower for convenience in administering such accounts.

"<u>Accreted Interest</u>": Interest accrued on a Loan that is added to the principal amount of such Loan instead of being paid as interest as it accrues.

"<u>Accrual Period</u>": With respect to each Advance (or portion thereof), (a) with respect to the first Payment Date, the period from and including the Closing Date to and including the Determination Date immediately preceding the first Payment Date and (b) with respect to any subsequent Payment Date, the period commencing on the first day of the calendar month in which the preceding Payment Date occurred and ending on the Determination Date immediately preceding the month in which the Payment Date occurs.

"<u>Additional Amount</u>": Defined in <u>Section</u> <u>2.15(a)</u>.

"<u>Adjusted Balance</u>": For any Loan as of any date of determination, an amount equal to the Assigned Value of such Loan at such time *multiplied by* the OLB of such Loan; *provided* that, the "Adjusted Balance" of any Loan that is no longer an Eligible Loan shall be zero.

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"<u>Administrative Agent</u>": Wells Fargo, in its capacity as administrative agent for the Lender Agents, together with its successors and assigns, including any successor appointed pursuant to <u>Article</u> <u>XII</u>.

"<u>Advance</u>": Each funding by the Lenders (including the Swingline Lender) hereunder (including refunding the Swingline Lender for any Swingline Advances pursuant to <u>Section</u> <u>2.21</u>).

"<u>Advance Rate</u>": With respect to any Loan on any Measurement Date, the corresponding percentage for the type of Loan set forth below:

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| | |
|:---|:---|
| **Type of Loan** | **Advance Rate** |
|  Broadly Syndicated Loan | 75.0% |
|  Middle Market Loan | 65.0% |
|  DIP Loan | sole discretion of the Administrative<br>Agent for each such Loan at the time of<br>approval of such Loan by the<br>Administrative Agent |

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"<u>Advances Outstanding</u>": On any date of determination, the sum of (i) the aggregate principal amount of all Advances outstanding in Dollars on such date, reduced by the aggregate Principal Collections received and distributed as repayment of principal amounts of Advances and any other amounts received by the Lenders to repay the principal amounts of any Advances, and after giving effect to the making of new Advances on such date and (ii) the equivalent in Dollars of the aggregate principal amount of Alternative Currency Advances on such date, determined by the Collateral Manager using the Applicable Exchange Rate, in each case after giving effect to all repayments of Advances and the making of new Advances on such date; *provided* that, the principal amounts of Advances outstanding shall not be reduced by any Principal Collections or other amounts if on such date of determination such Principal Collections or other amounts are rescinded or must be returned for any reason.

"<u>Advisers Act</u>": The Investment Advisers Act of 1940, as amended, and the rules and regulations promulgated thereunder.

"<u>Affected Party</u>": The Administrative Agent, each Lender Agent, each Lender, each Liquidity Bank, all assignees and participants of each Lender and each Liquidity Bank, any sub-agent of the Administrative Agent and any successor to a Lender Agent.

"<u>Affiliate</u>": With respect to a Person, means any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person, or is a director or officer of such Person; *provided* that, for purposes of determining whether any Loan is an Eligible Loan or any Obligor is an Eligible Obligor, the term "Affiliate" shall not include any Affiliate relationship which may exist solely as a result of direct or indirect ownership of, or control by, a common Financial Sponsor; *provided further* that, with respect to the Borrower or the Collateral Manager, the term "Affiliate" shall not include any Affiliate relationship which may exist solely as a result of portfolio investments made by any affiliates of Audax relating to their private equity investing activities. For purposes of this definition, "control," when used with respect to any specified Person means the possession, directly or indirectly, of the power to vote 20% or more of the voting securities of such Person or to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

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"<u>Agented Note</u>": Any Loan (i) originated as part of a syndicated loan transaction that has been closed (without regard to any contemporaneous or subsequent syndication of such Loan) prior to such Loan becoming part of the Collateral and (ii) with respect to which, upon assignment of the promissory note, if any, evidencing the indebtedness created under such Loan to the Borrower, the Borrower, as assignee of such note, will have all of the rights but none of the obligations of the transferor with respect to such note and the Related Property securing such Loan.

"<u>Aggregate Maximum Availability</u>": At any time, an amount calculated in Dollars (and converted to Dollars, if necessary, by the Collateral Manager using the Applicable Exchange Rate) equal to the least of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Facility Amount *minus* the Unfunded Exposure Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the product of the Borrowing Base and the Weighted Average Advance Rate *plus* the amount on deposit in the Principal Collections Account (except the portion thereof, if any, allocated by the Collateral Manager to meet any Unencumbered Liquidity requirements set forth in this Agreement) *minus* the Unfunded Exposure Equity Shortfall; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrowing Base *minus* the Minimum Required Equity Amount *plus* the amount on deposit in the Principal Collections Account (except the portion thereof, if any, allocated by the Collateral Manager to meet any Unencumbered Liquidity requirements set forth in this Agreement) *minus* the Unfunded Exposure Equity Shortfall.

"<u>Aggregate Unpaids</u>": At any time, an amount equal to the sum of all accrued and unpaid Advances Outstanding, Interest, Commitment Fees, Facility Margin, Prepayment Penalties, Breakage Costs and all other accrued and unpaid amounts owed by the Borrower to the Lenders, the Lender Agents, the Administrative Agent, the Collateral Agent and the Collateral Custodian hereunder (including, without limitation, all Indemnified Amounts, other amounts payable under <u>Article</u> <u>XI</u> and amounts required to be paid under <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u>, <u>Section</u> <u>2.9</u>, <u>Section</u> <u>2.13</u>, <u>Section</u> <u>2.14</u> and <u>Section</u> <u>2.15</u> to any Indemnified Party) or by the Borrower or any other Person under any fee letter delivered in connection with the transactions contemplated by this Agreement (including, without limitation, each Lender Fee Letter and the CA & CC Fee Letter), in each case whether or not such payments are due.

"<u>Alternative Currency</u>": Canadian Dollars.

"<u>Alternative Currency Advance</u>": Any Advance denominated in an Alternative Currency.

"<u>Anti-Corruption Laws</u>": (a) The U.S. Foreign Corrupt Practices Act of 1977, as amended; (b) the U.K. Bribery Act 2010, as amended; and (c) any other anti-bribery or anti-corruption laws, regulations or ordinances in any jurisdiction in which the Borrower, the Collateral Manager, the Equityholder or any of their respective Subsidiaries is located or doing business.

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"<u>Anti-Money Laundering Laws</u>": Applicable Law in any jurisdiction in which the Borrower, the Collateral Manager, the Equityholder or any of their respective Subsidiaries are located or doing business that relates to money laundering or terrorism financing, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.

"<u>Applicable Exchange Rate</u>": With respect to any Eligible Currency (other than Dollars) on any date of determination (x) the applicable currency-Dollar spot rate obtained by the Borrower (or the Collateral Manager on its behalf) on such date through customary banking channels or (y) if the Borrower (or the Collateral Manager on its behalf) fails to obtain a spot rate pursuant to clause (x), the applicable currency-Dollar spot rate provided (either by publication or otherwise provided or made available to the Administrative Agent) on the Thomson Reuters screen for such currency (i) if such date is a Determination Date, at the end of such day or (ii) otherwise, at the end of the immediately preceding Business Day.

"<u>Applicable Law</u>": For any Person or property of such Person, all existing and future laws, rules, regulations (including proposed, temporary and final income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders, licenses of and interpretations by any Governmental Authority applicable to such Person (including, without limitation, predatory and abusive lending laws, usury laws, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair Credit Billing Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade Commission Act, the Magnuson-Moss Warranty Act, the Federal Reserve Board's Regulations "B" and "Z," the Servicemembers Civil Relief Act of 2003 and state adaptations of the National Consumer Act and of the Uniform Consumer Credit Code and all other consumer credit laws and equal credit opportunity and disclosure laws) and applicable judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other administrative, judicial, or quasi-judicial tribunal or agency of competent jurisdiction.

"<u>Applicable Prime Rate</u>": With respect to any Loan, the prime or base rate applicable to such Loan pursuant to the Underlying Instruments for such Loan.

"<u>Applicable Reference Rate</u>": (a) With respect to any Advance denominated in Dollars, Daily Simple SOFR or (b) with respect to any Advance denominated in Canadian Dollars, Daily Simple CORRA.

"<u>Approval Notice</u>": With respect to any Eligible Loan, the written notice, in substantially the form attached hereto as <u>Exhibit</u> <u>A</u><u>-5</u>, evidencing the approval by the Administrative Agent, in its sole discretion, of the origination or acquisition, as applicable, by the Borrower of such Eligible Loan.

"<u>Assets Under Management</u>": As of any date of determination, the sum of (a) the aggregate fair value of the investments held by each Audax Private Debt Entity, which, for the avoidance of doubt, shall be assigned the same value as that assigned in the most recent statement to investors of the Audax Private Debt Entity and (b) the aggregate amount of any undrawn debt and uncalled capital commitment pursuant to which a Person is obligated to extend credit or make a capital contribution, as applicable, to such Audax Private Debt Entities as of such date.

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"<u>Assigned Documents</u>": Defined in <u>Section</u> <u>2.12</u>.

"<u>Assigned Value</u>": With respect to each Loan, as of its date of acquisition by the Borrower, the lower of (i) its Purchase Price and (ii) its value (expressed as a percentage of par) as determined by the Administrative Agent in its sole discretion as of such date, in each case subject to the following terms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if a Value Adjustment Event occurs, its "Assigned Value" may be reduced by the Administrative Agent at any time thereafter in its sole discretion, subject to the following clauses (b) through (e);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if such Loan is not a Broadly Syndicated Loan, solely with respect to the occurrence of a Value Adjustment Event described in clause (vii) of the definition thereof, immediately after giving effect to any such reevaluation, its Assigned Value shall not be lower than the lower of (x) the initial Assigned Value and (y) such value that would result in the Facility Attachment Ratio for such Loan (based upon such Loan's Senior Net Leverage Ratio or Total Net Leverage Ratio, as applicable) being lower than the "Minimum Facility Attachment Ratio" specified therefore in accordance with the grid below:

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| | |
|:---|:---|
| Middle Market Loans | Middle Market Loans |
| Senior Net Leverage Ratio | Minimum Facility Attachment Ratio |
| < 4.25x | 2.90x |
| > 4.25x and < 5.00x | 2.80x |
| > 5.00x and < 6.00x | 2.70x |
| > 6.00x and < 7.00x | 2.60x |
| > 7.00x and < 8.00x | 2.40x |
| > 8.00x | 0.00x |

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| | |
|:---|:---|
| Designated Loans | Designated Loans |
| Total Net Leverage Ratio | Minimum Facility Attachment Ratio |
| < 6.00x | The lesser of (i) the Facility Attachment Ratio<br> as of the date the Eligible Loan is acquired<br> and (ii) 2.00x |
| > 6.00x | 0.00x |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if such Loan is a Broadly Syndicated Loan (determined, for purposes of this clause (c), at the time of the applicable revaluation of such Loan), following the occurrence of a Value Adjustment Event described in clause (vi) or (vii) of the definition thereof, its Assigned Value shall be (w) the value (expressed as a percentage of par) assigned to such Loan through bid-side quotes determined by any two of LoanX Mark It Partners, Loan Pricing Corporation or another nationally recognized pricing service or broker-dealer selected by the Collateral Manager and approved in writing by the Administrative Agent, (x) if the Administrative Agent, in its reasonable discretion, determines that the value assigned by clause (w) is not current, accurate or available, or does not represent a bona fide trading level, the value for such Loan (expressed as a percentage of par) shall be (A) the average of the bid-side quotes determined by three independent broker-dealers active

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in the trading of such loan; or (B) if only two such bid-side quotes can be obtained, the average of the bid-side quotes of such two bids; or (C) if only one such bid-side quote can be obtained, such bid-side quote; provided that, if the Administrative Agent determines that any such quote is not current or accurate or does not represent a bona fide trading level, the Administrative Agent may reject such quote, (y) if no price can be arrived at by the means described above in clauses (w) and (x), the value for such Loan (expressed as a percentage of par) shall be the price provided by the Borrower in a bona fide bid in writing (via standard emails sent by broker-dealers engaged in trading such loans) from a dealer and (z) if no price can be arrived at by the means described above in clauses (w), (x) and (y), the Assigned Value will be determined by the Administrative Agent in its reasonable discretion; provided that, the Assigned Value of any Loan determined pursuant to this clause (c) shall not exceed the initial Assigned Value of such Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) after the occurrence or during an ongoing Value Adjustment Event, the Borrower may request, or the Administrative Agent may apply absent a Borrower request, an increase to the Assigned Value up to the initial Assigned Value. At any other time, the Borrower may request a revaluation of any Eligible Loan with an Assigned Value less than 100% (whether or not a Value Adjustment Event has occurred and is continuing with respect to such Eligible Loan) and the Administrative Agent may adjust the applicable Assigned Value to the lesser of (i) its discretionary Assigned Value (not to be less than the existing Assigned Value) or (ii) 100%; <u>provided</u> that, any such increase in the applicable Assigned Value may be conditioned on a reset of the Interest Coverage Ratio and/or the Senior Net Leverage Ratio or Total Net Leverage Ratio, as applicable, as of such date for the related Eligible Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Administrative Agent shall promptly notify the Collateral Manager and the Borrower of any change effected by the Administrative Agent to the Assigned Value of any Loan.

"<u>Assignment of Required Loan Documents</u>": An assignment, notice of transfer or equivalent instrument of the Required Loan Documents to the Collateral Agent, which assignment, notice of transfer or equivalent instrument may be in the form of one or more blanket assignments covering each Loan, substantially in the form of <u>Exhibit</u> <u>H</u>.

"<u>Audax</u>": Audax Management Company (NY), LLC.

"<u>Audax Private Debt Entities</u>": Any entity or account as to which the Collateral Manager provides discretionary "continuous and regular supervisory or management services" (as such phrase is used for purposes of the Advisers Act).

"<u>Availability</u>": At any time, an amount equal to the positive excess, if any, of (i) the Aggregate Maximum Availability over (ii) the Advances Outstanding on such day (with respect to Advances denominated in an Eligible Currency other than Dollars, determined in respect of the Dollar equivalent thereof calculated using the Applicable Exchange Rate on such date of determination); *provided* that, at all times on and after the earlier to occur of the Reinvestment Period End Date or the Termination Date, the Availability shall be zero.

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"<u>Available Funds</u>": With respect to any Payment Date, all amounts on deposit in the Collection Account (including, without limitation, any Collections with respect to Loans or REO Assets included in the Collateral and earnings from Permitted Investments in the Collection Account), during the immediately preceding Collection Period; *provided* that, any Collections received in the five (5) calendar days subsequent to the end of a Collection Period may be treated as if such Collections were received during such prior Collection Period (and not the current Collection Period) so long as (i) the Scheduled Payment for such Collections was meant to occur in the prior Collection Period and (ii) the related Collateral Management Report accurately reflects the remittance of such Collections to the previous Collection Period.

"<u>Bankruptcy Code</u>": The United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, *et seq.*), as amended from time to time.

"<u>Base Rate</u>": On any date, a fluctuating *per annum* interest rate equal to the higher of (a) the Prime Rate or (b) the Federal Funds Rate *plus* 1.5%.

"<u>BDC Election Date</u>": The date on which the Equityholder elects to be regulated as a "business development company" under the 1940 Act.

"<u>Benchmark</u>": Initially, with respect to an Eligible Currency, the Applicable Reference Rate; *provided* that if a Benchmark Transition Event with respect to such Applicable Reference Rate has occurred, then "Benchmark" means, with respect to the Advances, interest, fees, commissions or other amounts payable in such Eligible Currency, the applicable Benchmark Replacement to the extent that such Benchmark Replacement has replaced such prior benchmark rate pursuant to such <u>Section</u> <u>13.1</u>.

"<u>Benchmark Replacement</u>": With respect to any Benchmark Transition Event for any then-current Benchmark, the sum of: (a) the alternate benchmark rate that has been selected by the Administrative Agent and the Borrower as the replacement for such Benchmark, 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 for such Benchmark for syndicated credit facilities denominated in the applicable Eligible Currency at such time and (b) the related Benchmark Replacement Adjustment, if any; *provided* 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 purposes of this Agreement and the other Transaction Documents.

"<u>Benchmark Replacement Adjustment</u>": With respect to any replacement of any then-current Benchmark applicable to an Eligible Currency with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (i) 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 (ii) 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 syndicated credit facilities denominated in such Eligible Currency at such time.

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"<u>Benchmark Replacement Date</u>": The earlier to occur of the following events with respect to the then-current Benchmark applicable to an Eligible Currency:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event," the later of (a) the date of the public statement or publication of information referenced therein and (b) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (3) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by or on behalf of the administrator of such Benchmark (or such component thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) to be non-representative or non-compliant with or non-aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks; *provided* that such non-representativeness, non-compliance or non-alignment will be determined by reference to the most recent statement or publication referenced in such clause (3) and even if any other tenor of such Benchmark (or such component thereof) continues to be provided on such date.

"<u>Benchmark Transition Event</u>": With respect to any then-current Benchmark applicable to an Eligible Currency, the occurrence of one or more of the following events with respect to such Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) 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), permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide any such Benchmark (or such component thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) 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, the central bank for the Eligible Currency applicable to such Benchmark, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component thereof), a resolution authority with jurisdiction over the administrator for such Benchmark (or such component thereof) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark (or such component thereof), which states that the administrator of such Benchmark (or such component thereof) has ceased or will cease to provide such Benchmark (or such component thereof) permanently or indefinitely; *provided* that, at the time of such statement or publication, there is no successor administrator that will continue to provide such Benchmark (or such component thereof); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) 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) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof) announcing that such Benchmark (or such component thereof) is not, or as of a specified future date will not be, representative or in compliance with or aligned with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks.

"<u>Benchmark Transition Start Date</u>": Following the occurrence of a Benchmark Transition Event with respect to any then-current Benchmark applicable to an Eligible Currency, 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 90th 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>": With respect to any then-current Benchmark applicable to an Eligible Currency, the period (if any) (x) beginning at the time that a Benchmark Replacement Date with respect to such Benchmark pursuant to clauses (1) or (2) of the definition of "Benchmark Replacement Date" has occurred if, at such time, no Benchmark Replacement has replaced such Benchmark for all purposes hereunder and under any other Transaction Document in accordance with <u>Section</u> <u>13.1</u> and (y) ending at the time that a Benchmark Replacement has replaced such Benchmark for all purposes hereunder and under any other Transaction Document in accordance with <u>Section</u> <u>13.1</u>.

"<u>Beneficial Ownership Certification</u>": A certification regarding beneficial ownership required by the Beneficial Ownership Regulation, which certification shall be substantially similar in form and substance to the form of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association.

"<u>Beneficial Ownership Regulation</u>": 31 C.F.R. § 1010.230.

"<u>Benefit Plan Investor</u>": A "benefit plan investor" as defined in Department of Labor regulation 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA, including an employee benefit plan that is subject to the fiduciary responsibility provisions of Title I of ERISA, a plan that is subject to Section 4975 of the Code, or an entity the underlying assets of which are deemed to include plan assets.

"<u>BHC Act Affiliate</u>": The meaning assigned to the term "affiliate" in, and interpreted in accordance with, 12 U.S.C. § 1841(k).

"<u>Borrower</u>": The meaning specified in the Preamble hereto.

"<u>Borrower Operating Agreement</u>": The limited liability company agreement of the Borrower, dated as of October 10, 2024, as the same may be amended, restated, modified or supplemented from time to time.

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"<u>Borrowing Base</u>": As of any Measurement Date, an amount equal to the sum of the Adjusted Balances of all Loans included as part of the Collateral on such date, after giving effect to all Loans added to and removed from the Collateral on such date.

"<u>Borrowing Base Certificate</u>": Each certificate, in the form of <u>Exhibit</u> <u>A</u><u>-4</u>, required to be delivered by the Borrower with each Borrowing Notice and on each Measurement Date.

"<u>Borrowing Base Deficiency</u>": As of any date of determination, an amount equal to the positive difference, if any, of (x) (a) Advances Outstanding on such date over (b) the Aggregate Maximum Availability on such date or (y) (a) Advances Outstanding in an Eligible Currency other than Dollars on such date over (b) the Eligible Currency Maximum Availability on such date.

"<u>Borrowing Notice</u>": Each notice required to be delivered by the Borrower in respect of (a) each Advance, in the form of <u>Exhibit</u> <u>A</u><u>-1</u>.

"<u>Breakage Costs</u>": With respect to any Lender, any amount or amounts as shall compensate such Lender for any loss, cost or expense incurred by such Lender (as determined by the applicable Lender Agent, on behalf of such Lender, in such Lender Agent's sole discretion) as a result of a prepayment by the Borrower of Advances Outstanding or Interest. All Breakage Costs shall be due and payable hereunder on each Payment Date in accordance with <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> and <u>Section</u> <u>2.9</u>. The determination by the applicable Lender Agent of the amount of any such loss, cost or expense shall be delivered by the Administrative Agent to the Borrower pursuant to a written notice setting forth in reasonable detail the basis for and the computations of such loss, cost or expense, shall be in form satisfactory to the Administrative Agent and shall be conclusive absent manifest error.

"<u>Broadly Syndicated Loan</u>": Any Loan (i) that at the time of its acquisition by the Borrower, has a tranche size (including any last-out component but excluding any second lien or unsecured tranche) of at least $350,000,000 (it its equivalent in an Eligible Currency), (ii) that is not (and cannot by its terms become) subordinate in right of payment to any obligation of the related Obligor in any bankruptcy, reorganization, insolvency, moratorium or liquidation proceedings (except in cases where a super senior revolver may have some payment priority in a liquidation), (iii) that is secured by a pledge of collateral (which may be shared on specified working capital assets with a super senior revolver), which security interest is validly perfected and first priority (or second priority only in respect of current assets securing a super senior revolver) under applicable law (subject to, in each case, liens permitted under the applicable credit agreement that are reasonable and customary for similar loans, and liens accorded priority by law in favor of the United States or any state or agency), (iv) that is rated (or has an Obligor rated) at least "B-" by S&P and "B3" by Moody's for any Measurement Date, (v) for which the Collateral Manager determines in good faith that the value of the collateral securing the loan on or about the time of origination equals or exceeds the outstanding principal balance of the loan plus the aggregate outstanding balances of all other loans of equal or higher seniority secured by the same collateral, and (vi) has a related Obligor with EBITDA as of the most recently ended Relevant Test Period of at least $75,000,000.

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"<u>Business Day</u>": Any day (other than a Saturday or a Sunday) on which banks are not required or authorized to be closed in New York, New York, Charlotte, North Carolina or the city in which the offices of the Collateral Agent or the Collateral Custodian are located; *provided* that, if any determination of a Business Day shall relate to an Advance bearing interest at the Applicable Reference Rate, the term "Business Day" shall also exclude any day on which banks are not open for dealings in the principal financial center of the country of such Eligible Currency.

"<u>CA</u> <u>& CC Fee Letter</u>": The fee letter, dated as of September 24, 2024, by and among the Collateral Manager, the Administrative Agent and Computershare, in its capacity as the Collateral Custodian, the Collateral Agent and the Securities Intermediary, as such letter may be amended, modified, supplemented, restated or replaced from time to time.

"<u>Canadian Dollars</u>": The lawful currency of Canada.

"<u>Capital Call Notice</u>": A capital call notice (as defined in the Equityholder Operating Agreement) delivered by the Equityholder to all or any of the Investors requesting a contribution by such Investors of all or any portion of their respective Unfunded Capital Commitments.

"<u>Capital Commitment</u>": For any Investor, its "Commitment" to the Equityholder as defined in the Equityholder Operating Agreement.

"<u>Capital Contribution</u>": For any Investor, any contribution of capital made to the Equityholder in response to a Capital Call Notice.

"<u>Capital Lease Obligations</u>": With respect to any entity, the obligations of such entity to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases on a balance sheet of such entity under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

"<u>Certificated Security</u>": The meaning specified in Section 8-102(a)(4) of the UCC.

"<u>Change of Control</u>": Any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Collateral Manager or an Affiliate of Audax ceases to be the sole "Investment Manager" (as defined in the Equityholder Operating Agreement) of the Equityholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the creation or imposition of any Lien on the economic interests of the Borrower owned by the Equityholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the failure of the Equityholder to own, directly or through one or more wholly owned subsidiaries if approved in writing by the Administrative Agent in its sole discretion (not to be unreasonably withheld), 100% of the economic interests of the Borrower.

"<u>Clearing Agency</u>": An organization registered as a "clearing agency" pursuant to Section 17A of the Exchange Act.

"<u>Clearing Corporation</u>": The meaning specified in Section 8-102(a)(5) of the UCC.

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"<u>Closing Date</u>": October 10, 2024.

"<u>Code</u>": The Internal Revenue Code of 1986, as amended from time to time.

"<u>Collateral</u>": All right, title, and interest (whether now owned or hereafter acquired or arising, and wherever located) of the Borrower in the property identified in clauses (i) - (v) below and all accounts, cash and currency, chattel paper, tangible chattel paper, electronic chattel paper, copyrights, copyright licenses, equipment, fixtures, contract rights, general intangibles, instruments, certificates of deposit, certificated securities, uncertificated securities, financial assets, securities entitlements, commercial tort claims, deposit accounts, inventory, investment property, letter-of-credit rights, software, supporting obligations, accessions, general intangibles and other property consisting of, arising out of, or related to any of the following (in each case excluding the Retained Interest and the Excluded 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;(i) the Loans, and all monies due or to become due in payment under such Loans on and after the related Funding Date, including, but not limited to, all Collections;

&nbsp;&nbsp;&nbsp;&nbsp;&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 Related Security with respect to the Loans referred to in clause (i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Borrower's equity interests in any Portfolio Subsidiary formed to hold an REO Asset;

&nbsp;&nbsp;&nbsp;&nbsp;&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 Accounts; 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;(v) all income and Proceeds of the foregoing.

"<u>Collateral Agent</u>": The meaning specified in the Preamble hereto.

"<u>Collateral Agent and Portfolio Administration Fee</u>": The fees, expenses and indemnity amounts payable to the Collateral Agent, the Collateral Custodian and the Securities Intermediary (without duplication) set forth as such in the CA & CC Fee Letter and as provided herein or in any other Transaction Document.

"<u>Collateral Agent Termination Notice</u>": Defined in <u>Section</u> <u>7.5</u>.

"<u>Collateral Custodian</u>": Computershare, not in its individual capacity, but solely as Collateral Custodian, its successor in interest pursuant to <u>Section</u> <u>8.3</u> or such Person as shall have been appointed Collateral Custodian pursuant to <u>Section</u> <u>8.5</u>.

"<u>Collateral Custodian Termination Notice</u>": Defined in <u>Section</u> <u>8.5</u>.

"<u>Collateral Management Fee</u>": The servicing fee payable to the Collateral Manager on each Payment Date in arrears in respect of each Collection Period, which fee shall be equal to the product of (i) 0.50%, (ii) the weighted average Borrowing Base during the related Collection Period and (iii) the actual number of days in such Collection Period *divided by* 360.

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"<u>Collateral Management File</u>": For each Eligible Loan, the following documents or instruments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) copies (which may be electronic) of each of the documents included in the Required Loan Documents definition and, if the Borrower is the sole lender on such Loan, an Assignment of Required Loan Documents, executed by the Borrower in blank;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent applicable to such Eligible Loan, the final copies (which may be electronic) for any related subordination agreement, intercreditor agreement, or similar instruments or similar material operative document, in each case together with any amendment or modification thereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) either (i) copies (which may be electronic) of the UCC-1 financing statements, if any, and any related continuation statements, each showing the Obligor as debtor and each with evidence of filing thereon, or (ii) copies (which may be electronic) of any such financing statements, if any, certified by the Collateral Manager to be true and complete copies thereof in instances where the original financing statements have been sent to the appropriate public filing office for filing.

"<u>Collateral Management Report</u>": Defined in <u>Section</u> <u>6.8(b)</u>.

"<u>Collateral Management Standard</u>": Shall mean, with respect to any Loans included in the Collateral, to service and administer such Loans on behalf of the Secured Parties in accordance with the Underlying Instruments and all customary and usual servicing practices which are consistent with the higher of (i) the customary standards and procedures with which the Collateral Manager as of any date of determination services and administers loans for its own account or for the account of others and (ii) without limiting the foregoing, in a manner that the Collateral Manager believes is consistent with the customary standards, policies and procedures followed by institutional managers of national standing relating to assets of the nature and character of the Collateral.

"<u>Collateral Manager</u>": The meaning specified in the Preamble hereto and each successor appointed as Successor Collateral Manager pursuant to <u>Section</u> <u>6.13(a)</u>.

"<u>Collateral Manager Default</u>": Defined in <u>Section</u> <u>6.12</u>.

"<u>Collateral Manager Pension Plan</u>": Defined in <u>Section</u> <u>4.3(o)</u>.

"<u>Collateral Manager Termination Notice</u>": Defined in <u>Section</u> <u>6.12</u>.

"<u>Collateral Manager's Certificate</u>": Defined in <u>Section</u> <u>6.8(c)</u>.

"<u>Collection Account</u>": Defined in <u>Section</u> <u>6.4(f)</u>.

"<u>Collection Date</u>": The date following either the Reinvestment Period End Date or the Termination Date on which the Aggregate Unpaids have been reduced to zero and indefeasibly paid in full.

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"<u>Collection Period</u>": With respect to the first Payment Date, the period from and including the Closing Date to and including the Determination Date immediately preceding the first Payment Date; and thereafter, the period from but excluding the Determination Date preceding the previous Payment Date to and including the Determination Date immediately preceding the current Payment Date, or, with respect to the final Collection Period, the Collection Date; *provided* that any Collections received in the five (5) calendar days subsequent to the end of a Collection Period may be treated as if such Collections were received during such prior Collection Period so long as (i) the Scheduled Payment for such Collections was meant to occur in the prior Collection Period and (ii) the related Collateral Management Report accurately reflects the remittance of such Collections to the previous Collection Period.

"<u>Collections</u>": (a) All cash collections and other cash proceeds of any Loan, including, without limitation or duplication, any Interest Collections, Principal Collections, amendment fees, late fees, prepayment fees, waiver fees, Recoveries or other amounts received in respect thereof (but excluding any Excluded Amounts), (b) interest earnings on Permitted Investments or otherwise in any Account, (c) any cash proceeds or other funds received by the Borrower or the Collateral Manager with respect to any Related Security (including from any guarantors) and (d) all cash collections and cash proceeds of any REO Asset received by the Borrower or the Collateral Manager with respect to any Related Security (including from any Portfolio Subsidiary).

"<u>Commercial Paper Notes</u>": Any short-term promissory notes of any Conduit Lender issued by such Conduit Lender in the commercial paper market.

"<u>Commitment</u>": With respect to each Lender, the commitment of such Lender to make Advances in accordance herewith in an amount not to exceed (a) prior to the earlier to occur of the Reinvestment Period End Date or the Termination Date, the dollar amount set forth opposite such Lender's name on <u>Annex</u> <u>B</u> hereto or the amount set forth as such Lender's "Commitment" on Schedule I to the Joinder Supplement relating to such Lender, as applicable, and (b) on or after the earlier to occur of the Reinvestment Period End Date or the Termination Date, with respect to each Conduit Lender and each Institutional Lender, such Lender's Pro Rata Share of the aggregate Advances Outstanding.

"<u>Commitment Fee</u>": Defined in <u>Section</u> <u>2.13(a)</u>.

"<u>Commitment Fee Rate</u>": Defined in <u>Section</u> <u>2.13(a)</u>.

"<u>Conduit Lender</u>": The meaning specified in the Preamble hereto and any commercial paper conduit as may from time to time become a Lender hereunder by executing and delivering a Joinder Supplement to the Administrative Agent and the Borrower as contemplated by <u>Section</u> <u>2.1(d)</u>.

"<u>Conforming Changes</u>": With respect to the use or administration of any Benchmark 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 "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,

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timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback periods, the applicability of breakage provisions and other technical, administrative or operational matters) that the Administrative Agent decides (in consultation with the Borrower) may be appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines, in consultation with the Borrower, that no market practice for the administration of any such rate exists, in such other manner of administration as the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement and the other Transaction Documents).

"<u>Continued Errors</u>": Defined in <u>Section</u> <u>6.13(d)</u>.

"<u>Contractual Obligation</u>": With respect to any Person, any material provision of any securities issued by such Person or any material indenture, mortgage, deed of trust, contract, undertaking, agreement, instrument or other document to which such Person is a party or by which it or any of its property is bound or to which either is subject.

"<u>Contribution Agreement</u>": The Contribution Agreement, by and among the Borrower and the Equityholder, dated as of the date hereof, as the same may be amended, restated, modified or supplemented from time to time.

"<u>Contributor</u>": The Equityholder, in its capacity as contributor under the Contribution Agreement.

"<u>Control" or "Controlling</u>": The possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.

"<u>CORRA</u>": A rate equal to the Canadian Overnight Repo Rate Average as administered by the CORRA Administrator.

"<u>CORRA Administrator</u>": The Bank of Canada (or any successor administrator).

"<u>CORRA Administrator's Website</u>": The website of the CORRA Administrator, currently at https://www.bankofcanada.ca, or any successor source for the Canadian Overnight Repo Rate Average identified as such by the CORRA Administrator from time to time.

"<u>CORRA Determination Day</u>": The meaning specified in the definition of "Daily Simple <u>CORRA</u>".

"<u>CORRA Rate Day</u>": The meaning specified in the definition of "Daily Simple <u>CORRA</u>".

"<u>Covered Party</u>": Any Secured Party that is one 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 any subsidiary of such a covered bank to which 12 C.F.R. Part 47 applies 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).

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"<u>Daily Simple CORRA</u>": For any day (a "<u>CORRA Rate Day</u>"), a rate per annum equal to the greater of (a) CORRA for the day (such day, a "<u>CORRA Determination Day</u>") that is five (5) Business Days prior to (i) if such CORRA Rate Day is a Business Day, such CORRA Rate Day or (ii) if such CORRA Rate Day is not a Business Day, the Business Day immediately preceding such CORRA Rate Day, in each case, as such CORRA is published by the CORRA Administrator on the CORRA Administrator's Website and (b) the Floor. If by 5:00 p.m. (Toronto time) on the second (2nd) Business Day immediately following any CORRA Determination Day, CORRA in respect of such CORRA Determination Day has not been published on the CORRA Administrator's Website and a Benchmark Replacement Date with respect to Daily Simple CORRA has not occurred, then CORRA for such CORRA Determination Day will be CORRA as published in respect of the first preceding Business Day for which such CORRA was published on the CORRA Administrator's Website; *provided* that CORRA as determined pursuant to this proviso shall be utilized for purposes of calculation of Daily Simple CORRA for no more than three (3) consecutive CORRA Rate Days; *provided further* that in no event shall Daily Simple CORRA determined pursuant to this sentence be less than the Floor. Any change in Daily Simple CORRA due to a change in CORRA shall be effective from and including the effective date of such change in CORRA without notice to Borrower.

"<u>Daily Simple SOFR</u>": 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, a "<u>SOFR Determination Day</u>") that is five (5) U.S. Government Securities Business Days prior to (i) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (ii) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website, and (b) the Floor. If by 5:00 p.m. on the second (2nd) U.S. Government Securities Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator's Website and a Benchmark Replacement Date with respect to Daily Simple SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding U.S. Government Securities Business Day for which such SOFR was published on the SOFR Administrator's 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 three (3) consecutive SOFR Rate Days. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower. Daily Simple SOFR in no event shall be less than the Floor.

"<u>Default Period</u>": The period beginning on the day on which the Termination Date is declared or automatically occurs, and ending on the Collection Date.

"<u>Default Right</u>": The meaning assigned to that term in, and interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

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"<u>Defaulting Lender</u>": Any Lender that (i) has failed to fund any portion of the Advances or participations in Swingline Advances required to be funded by it hereunder within one (1) Business Day of the date required to be funded by it hereunder, (ii) has otherwise failed to pay over to the Administrative Agent or any other Lender any other amount required to be paid by it hereunder within three (3) Business Days of the date when due, unless such amount is the subject of a good faith dispute, (iii) has notified the Borrower, the Administrative Agent or any other Lender in writing that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply or has failed to comply with its funding obligations under this Agreement or generally under other agreements in which it commits or is obligated to extend credit, or (iv) has become or is insolvent or has become the subject of a bankruptcy or insolvency proceeding, or has had a receiver, conservator, trustee or custodian appointed for it, or has taken any action in furtherance of, or indicating its consent to, approval of or acquiescence in any such proceeding or appointment.

"<u>Delaware Expenses</u>": With respect to the following, incurred by the Borrower solely due to its continued existence in the State of Delaware: (i) any annual return fees and registered office fees of the Borrower, (ii) any fees and expenses for any administrators of the Borrower, (iii) any fees for any agent for the service of legal process, (iv) any expenses incurred in employing outside lawyers, accountants, consultants and any other experts, and (v) all other expenses of the Borrower relating to the Transaction Documents.

"<u>Delayed Draw Loan</u>": Any Broadly Syndicated Loan or Middle Market Loan that is fully committed on the initial funding date of such Loan and is required to be fully funded in one or more installments on draw dates to occur after the initial funding of such Loan but which, once all such installments have been made, has the characteristics of a Term Loan.

"<u>Designated Loan</u>": Any Loan that the Administrative Agent designates at the time such Loan is approved, in its sole discretion, as a "Designated Loan" for purposes of determining the Assigned Value of such Loan by reference to the Minimum Facility Attachment Ratios set forth therein.

"<u>Determination Date</u>": The last day of each calendar month.

"<u>DIP Loan</u>": Any Loan (i) with respect to which the related Obligor is a debtor-in-possession as defined under the Bankruptcy Code, (ii) which has the priority allowed pursuant to Section 364 of the Bankruptcy Code and (iii) the terms of which have been approved by a court of competent jurisdiction (the enforceability of which is not subject to any pending contested matter or proceeding).

"<u>Discretionary Sale</u>": Defined in <u>Section</u> <u>2.19(a)</u>.

"<u>Discretionary Sale Date</u>": The Business Day identified by the Borrower to the Administrative Agent and the Collateral Agent in a Discretionary Sale Notice as the proposed date of a Discretionary Sale.

"<u>Discretionary Sale Notice</u>": Defined in <u>Section</u> <u>2.19(a)(i)</u>.

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"<u>Disruption Event</u>": The occurrence of any of the following with respect to any Eligible Currency: (a) any Lender shall have notified the Administrative Agent, the Collateral Agent, the Collateral Manager and the Borrower of a determination by such Lender that it would be contrary to law or to the directive of any central bank or other Governmental Authority (whether or not having the force of law) to obtain such Eligible Currency in the applicable market to fund any Advance, (b) any Lender shall have notified the Administrative Agent, the Collateral Agent, the Collateral Manager and the Borrower of a determination by such Lender that the rate at which such Eligible Currency is being offered to such Lender in the applicable market does not accurately reflect the cost to such Lender of making, funding or maintaining any Advance or (c) any Lender shall have notified the Administrative Agent, the Collateral Agent, the Collateral Manager and the Borrower of the inability of such Lender to obtain such Eligible Currency in the applicable market to make, fund or maintain any Advance; *provided* that if the circumstances described above have arisen and such circumstances are unlikely to be temporary then no Disruption Event shall have been deemed to occur and a Benchmark Transition Event shall have occurred.

"<u>Dollars</u>": Means, and the conventional "<u>$</u>" signifies, the lawful currency of the United States.

"<u>EBITDA</u>": With respect to any period and any Loan, the meaning of "EBITDA," "Adjusted EBITDA" or any comparable definition in the Underlying Instruments for each such Loan, and in any case that "EBITDA," "Adjusted EBITDA" or such comparable definition is not defined in such Underlying Instruments, an amount, for the principal obligor on such Loan and any of its parents or Subsidiaries that are obligated pursuant to the Underlying Instruments for such Loan (determined on a consolidated basis without duplication in accordance with GAAP) equal to earnings from continuing operations for such period *plus* (a) interest expense, (b) income taxes, (c) depreciation and amortization for such period (to the extent deducted in determining earnings from continuing operations for such period), (d) amortization of intangibles (including, but not limited to, goodwill, financing fees and other capitalized costs), other non-cash charges and organization costs, (e) extraordinary losses in accordance with GAAP, (f) one-time, non-recurring non-cash charges consistent with the compliance statements and financial reporting packages provided by the Obligors and (g) any other item the Borrower and the Administrative Agent mutually deem to be appropriate; *provided* that, with respect to any Obligor for which four full fiscal quarters of financial data are not available, EBITDA shall be determined for such Obligor based on annualizing the financial data from the reporting periods actually available.

"<u>Eligible Currency</u>": Canadian Dollars and Dollars.

"<u>Eligible Currency Borrowing Base</u>": For each Eligible Currency other than Dollars, as of any Measurement Date, an amount equal to the sum of the Adjusted Balances of all Loans included as part of the Collateral on such date, after giving effect to all Loans added to and removed from the Collateral on such date.

"<u>Eligible Currency Maximum Availability</u>": For each Eligible Currency other than Dollars, the greater of (a) zero and (b) the product of the Eligible Currency Borrowing Base and the Weighted Average Advance Rate of all Eligible Loans denominated in such Eligible Currency *plus* the amounts on deposit in such Eligible Currency in the Principal Collections Account *minus* the Unfunded Exposure Equity Shortfall associated with Eligible Loans denominated in such Eligible Currency.

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"<u>Eligible Loan</u>": At any time, each Loan that satisfies each of the following eligibility requirements (unless compliance with any one or more of such representations and warranties is waived, in writing, by the Administrative Agent in its sole discretion); <u>provided</u> that, with respect to <u>clauses (c)</u> through <u>(g)</u> and <u>clause (k)</u> below, only the portion of such Loans that exceed the applicable threshold will be deemed to be ineligible:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) such Loan has been approved by the Administrative Agent in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Loan is a Broadly Syndicated Loan, a Middle Market Loan or a DIP Loan with an original term to stated maturity of not greater than seven (7) years;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) during the Reinvestment Period, such Loan (or, to the extent set forth in the last sentence of this definition, a portion of such Loan) shall not cause the sum of the OLB of all Eligible Loans included in the Collateral made to the Obligor of such Loan (including any Affiliate thereof), to exceed 6.5% of the Facility Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) during the Reinvestment Period, such Loan shall not cause the aggregate OLB of all Partial PIK Loans in the Collateral to exceed 15.0% of the aggregate OLB of all Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) during the Reinvestment Period, such Loan shall not cause the aggregate OLB of all Fixed Rate Loans in the Collateral to exceed 5.0% of the aggregate OLB of all Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) such Loan shall not cause the aggregate OLB of all DIP Loans in the Collateral to exceed the greater of (x) $8,000,000 and (y) during the Reinvestment Period, 5.0% of the OLB of all Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) during the Reinvestment Period, such Loan shall not cause the sum of all unfunded commitments associated with Delayed Draw Loans to collectively exceed 10.0% of the aggregate OLB of all Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) such Loan, together with the Underlying Instruments related thereto, (i) is in full force and effect and constitutes the legal, valid and binding obligation of the related Obligor (except as such enforceability may be limited by Insolvency Laws and general principles of equity (whether considered in a suit at law or in equity)) enforceable against such Obligor in accordance with its terms, (ii) is not subject to any litigation, dispute or offset on the part of the related Obligor, and (iii) contains provisions substantially to the effect that the Obligor's payment obligations thereunder are absolute and unconditional without any right of rescission, setoff, counterclaim or defense for any reason against the holder thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) such Loan and any Related Property comply in all material respects with all Applicable Law;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) such Loan is denominated and payable only in an Eligible Currency and does not permit the currency or country in which such Loan is payable to be changed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Related Property for such Loan is primarily located in the United States or Canada unless otherwise approved in writing by the Administrative Agent in its sole discretion (other than any Related Property that is in addition to the primary Related Property with respect to which such Loan was principally underwritten); *provided* that the sum of the Adjusted Balances of all Loans (x) where the related Obligor is organized under the laws of Canada and/or (y) denominated and payable in Canadian Dollars shall not exceed the greater of $12,000,000 and during the Reinvestment Period, 15% of the Borrowing Base;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) such Loan (i) is purchased or originated by the Borrower at the Collateral Manager's direction and (ii) is being serviced by the Collateral Manager, in each case in accordance with the Collateral Management Standard;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) as of the date such Loan was purchased or originated by the Borrower, such Loan is not delinquent in payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) as of the date such Loan was purchased or originated, (x) such Loan is eligible under its Underlying Instruments (giving effect to the provisions of Sections 9-406 and 9-408 of the UCC) to be sold to the Borrower and (y) such Loan is eligible to have a security interest therein granted to the Collateral Agent, for the benefit of the Secured Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) such Loan does not contain a confidentiality provision that restricts or purports to restrict the ability of the Administrative Agent to exercise its rights under this Agreement, including, without limitation, its rights to review the Required Loan Documents and the Collateral Management Files;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) such Loan provides for (i) periodic payments of a portion of accrued and unpaid interest in cash on a current basis, no less frequently than semi-annually and (ii) a fixed amount of principal payable in cash no later than its stated maturity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) all consents, licenses, approvals or authorizations of, or registrations or declarations with, any Governmental Authority or any other Person required to be obtained, effected or given in connection with the making, acquisition, transfer or performance of such Loan and any Related Property have been duly obtained, effected or given and are in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) such Loan is Registered;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) such Loan is not a participation interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) (i) the Borrower has good and marketable title to, and is the sole owner of, such Loan, (ii) the Borrower has granted to the Collateral Agent a valid and perfected security interest in the Loan and Related Property, for the benefit of the Secured Parties, which security interest shall be first priority (subject to Permitted Liens), and (iii) all

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Required Loan Documents required to be delivered to the Collateral Custodian, with respect to such Loan, have been or will be delivered to the Collateral Custodian within five (5) Business Days of the date such Loan was purchased or originated, except as otherwise provided in <u>Section</u> <u>3.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) the Obligor with respect to such Loan is an Eligible Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such Loan (A) is not an Equity Security and (B) does not by its terms provide for the conversion or exchange into an Equity Security at any time on or after the date it is included as part of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) the acquisition of such Loan will not cause the Borrower or the pool of Collateral to be required to register as an investment company under the 1940 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) such Loan does not constitute Margin Stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) unless it is a Partial PIK Loan, such Loan does not constitute a PIK Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) such Loan does not constitute a Revolving Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) such Loan is not subject to withholding tax unless the Obligor thereon is required under the terms of the related Underlying Instruments to make "gross-up" payments that cover the full amount of such withholding tax on an after-tax basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) the proceeds of such Loan will not be used to finance activities of the type engaged in by businesses classified under NAICS Codes 2361 (Residential Building Construction), 2362 (Nonresidential Building Construction), 2371 (Utility System Construction), or 2372 (Land Subdivision);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) such Loan and the Underlying Instruments related thereto, are eligible to be sold, assigned or transferred to the Borrower, and neither the sale, transfer or assignment of such Loan to the Borrower, nor the granting of a security interest hereunder to the Collateral Agent, on behalf of the Secured Parties, violates, conflicts with or contravenes any Applicable Law or any contractual or other restriction, limitation or encumbrance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) such Loan is not principally secured by real estate.

Notwithstanding anything to the contrary herein, the Borrower may acquire Loans (or portions thereof) that do not satisfy <u>clause (c)</u> above so long as such Loans were not purchased with proceeds of Advances.

"<u>Eligible Obligor</u>": At any time, any Obligor that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is a business organization (and not a natural person) duly organized and validly existing under the laws of its jurisdiction of organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is a legal operating entity, holding company or special purpose entity;

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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;(iii) is not organized for household 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;&nbsp;&nbsp;&nbsp;&nbsp;(iv) is not a Governmental 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) is not an Affiliate of the Borrower or the Collateral Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) other than with respect to DIP Loans as set forth in clause (b) of the definition of "Eligible Loan" and unless otherwise approved by the Administrative Agent in its sole discretion, is not (and has not been for at least two (2) years) the subject of an Insolvency Event.

For the avoidance of doubt, an "Eligible Obligor" shall include an Obligor that is an Affiliate of the Collateral Manager or the Equityholder; *provided* that, the acquisition of a Loan with respect to such Obligor shall have been acquired from a Person who is not affiliated with the Collateral Manager or the Equityholder.

"<u>Eligible Repurchase Obligations</u>": Repurchase obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States, in either case entered into with a depository institution or trust company (acting as principal) described in clause (c) of the definition of Permitted Investments.

"<u>Environmental Laws</u>": Any and all foreign, federal, state and local laws, statutes, ordinances, rules, regulations, permits, licenses, approvals, interpretations (with the force of law) and orders of courts or Governmental Authorities, relating to the protection of human health or the environment, including, but not limited to, requirements pertaining to the manufacture, processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting, investigation or remediation of Hazardous Materials. Environmental Laws include, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 *et seq.*), the Hazardous Material Transportation Act (49 U.S.C. § 331 *et seq.*), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 *et seq.*), the Federal Water Pollution Control Act (33 U.S.C. § 1251 *et seq.*), the Clean Air Act (42 U.S.C. § 7401 *et seq.*), the Toxic Substances Control Act (15 U.S.C. § 2601 *et seq.*), the Safe Drinking Water Act (42 U.S.C. § 300, *et seq.*), the Environmental Protection Agency's regulations relating to underground storage tanks (40 C.F.R. Parts 280 and 281), and the Occupational Safety and Health Act (29 U.S.C. § 651 *et seq.*), and the rules and regulations thereunder, each as amended or supplemented from time to time.

"<u>Equity Security</u>": (i) Any equity security or any other security that is not eligible for purchase by the Borrower as a Loan, (ii) any security purchased as part of a "unit" with a Loan and that itself is not eligible for purchase by the Borrower as a Loan, and (iii) any obligation that, at the time of commitment to acquire such obligation, was eligible for purchase by the Borrower as a Loan but that, as of any subsequent date of determination, no longer is eligible for purchase by the Borrower as a Loan, for so long as such obligation fails to satisfy such requirements.

"<u>Equityholder</u>": The meaning specified in the Preamble hereto.

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"<u>Equityholder Operating Agreement</u>": Prior to the BDC Election Date, the amended and restated agreement of limited partnership of the Equityholder, dated as of October 1, 2024, as the same may be amended, restated, modified or supplemented from time to time and, on and after the BDC Election Date, the limited liability company agreement of the Equityholder, as the same may be amended, restated, modified or supplemented from time to time.

"<u>ERISA</u>": The United States Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations promulgated and rulings issued thereunder.

"<u>ERISA Affiliate</u>": Any trade or business (whether or not incorporated) that together with the Borrower or Collateral Manager, is treated as a single employer under (i) Section 414(b) or (c) of the Code or (ii) solely for purposes of Sections 412 and 430 of the Code or Section 302 of ERISA, Section 414(m) or (o) of the Code.

"<u>Erroneous Payment</u>": The meaning specified in <u>Section</u> <u>12.3 (a)</u>.

"<u>Erroneous Payment Deficiency Assignment</u>": The meaning specified in <u>Section</u> <u>12.3(d)</u>.

"<u>Erroneous Payment Return Deficiency</u>": The meaning specified in <u>Section</u> <u>12.3(d)</u>.

"<u>Errors</u>": Defined in <u>Section</u> <u>6.13(d)</u>.

"<u>Excepted Persons</u>": Defined in <u>Section</u> <u>13.13(a)</u>.

"<u>Exchange Act</u>": The United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

"<u>Excluded Amounts</u>": (a) Any amount received in the Collection Account with respect to any Loan included as part of the Collateral, which amount is attributable to the payment of any Tax, fee or other charge imposed by any Governmental Authority on such Loan or on any Related Property, (b) any amount received in the Collection Account or other Account representing (i) a reimbursement of insurance premiums and (ii) any escrows relating to Taxes, insurance and other amounts in connection with Loans which are held in an escrow account for the benefit of the Obligor and the secured party pursuant to escrow arrangements under the Underlying Instruments and (c) any amount received in the Collection Account with respect to any Loan retransferred or substituted for upon the occurrence of a Warranty Event or that is otherwise replaced by a Substitute Loan, or that is otherwise sold or transferred by the Borrower pursuant to <u>Section</u> <u>2.17</u>, <u>Section</u> <u>2.18</u> or <u>Section</u> <u>2.19</u>, to the extent such amount is attributable to a time after the effective date of such replacement or sale.

"<u>Excluded Taxes</u>": Defined in <u>Section</u> <u>2.15(a)</u>.

"<u>Exposure Amount</u>": As of any date of determination, with respect to any Delayed Draw Loan, (i) the maximum commitment of such Delayed Draw Loan (excluding any original issue discount) under the terms of the applicable Underlying Instruments (and, for the avoidance of doubt, the commitment in respect of a Loan as to which the commitment to make additional advances has been terminated shall be zero) *minus* (ii) the OLB of such Delayed Draw Loan on such date of determination calculated in Dollars (and converted to Dollars, if necessary, by the Collateral Manager using the Applicable Exchange Rate).

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"<u>Extension</u>": Defined in <u>Section</u> <u>2.1(c)</u>.

"<u>Facility Amount</u>": The aggregate Commitments of the Lenders then in effect, which amount may be up to $500,000,000, as such amounts may vary from time to time pursuant to <u>Section</u> <u>2.1(d)</u> or <u>Section</u> <u>2.3(a)</u>; *provided* that the Borrower shall be permitted to request Advances denominated in Eligible Currencies other than Dollars in an equivalent amount (calculated using the Applicable Exchange Rate on the date of funding of any such Advance); *provided* that, on or after the earlier to occur of the Reinvestment Period End Date or the Termination Date, the Facility Amount shall equal the Advances Outstanding as of such date.

"<u>Facility Attachment Ratio</u>": With respect to any Broadly Syndicated Loan, Middle Market Loan or Designated Loan, as of any date of determination, an amount equal to the product of (a) its Senior Net Leverage Ratio, (b) the applicable Advance Rate and (c) its Assigned Value as of such date.

"<u>Facility Margin</u>": Defined in <u>Section</u> <u>2.13(b)</u>.

"<u>Facility Margin Rate</u>": Defined in <u>Section</u> <u>2.13(b)</u>.

"<u>Facility Maturity Date</u>": October 10, 2029.

"<u>FATCA</u>": Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"<u>FDIC</u>": The Federal Deposit Insurance Corporation, and any successor thereto.

"<u>Federal Funds Rate</u>": For any period, a fluctuating interest *per annum* rate equal, for each day during such period, to the weighted average of the overnight federal funds rates as in Federal Reserve Board Statistical Release H.15(519) or any successor or substitute publication selected by the Administrative Agent (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 rate determined, in the sole discretion of the Administrative Agent, to be the rate at which overnight federal funds are being offered in the national federal funds market at 9:00 a.m. on such day. If the calculation of the Federal Funds Rate results in a Federal Funds Rate of less than zero, the Federal Funds Rate shall be deemed to be zero for all purposes of this Agreement.

"<u>Financial Asset</u>": The meaning specified in Section 8-102(a)(9) of the UCC.

"<u>Financial Sponsor</u>": Any Person, including any Subsidiary of such Person, whose principal business activity is acquiring, holding, and selling investments (including controlling interests) in otherwise unrelated companies that each are distinct legal entities with separate management, books and records and bank accounts, whose operations are not integrated with one another and whose financial condition and creditworthiness are independent of the other companies so owned by such Person.

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"<u>Fitch</u>": Fitch, Inc. or any successor thereto.

"<u>Fixed Rate Loan</u>": An Eligible Loan other than a Floating Rate Loan.

"<u>Floating Rate Loan</u>": An Eligible Loan under which the Loan Rate payable by the Obligor thereof is based on the Applicable Prime Rate or the applicable benchmark rate, *plus* some specified interest percentage in addition thereto, and the Loan provides that such Loan Rate will reset immediately upon any change in the related Applicable Prime Rate.

"<u>Floor</u>": A rate of interest equal to 0.0%.

"<u>Fronting Exposure</u>": At any time there is a Defaulting Lender with respect to the Swingline Lender, such Defaulting Lender's Pro Rata Share of Swingline Advances other than Swingline Advances as to which such Defaulting Lender's participation obligation has been reallocated to other Lenders, repaid by the Borrower or for which cash collateral or other credit support acceptable to the Swingline Lender shall have been provided in accordance with the terms hereof.

"<u>Funding Date</u>": With respect to any Advance or Swingline Advance, the date such funds are made available to the Borrower in accordance with <u>Section</u> <u>2.2</u>.

"<u>Funding Request</u>": A Borrowing Notice in the form of <u>Exhibit</u> <u>A</u><u>-1</u> requesting an Advance and including the items required by <u>Section</u> <u>2.2</u>.

"<u>GAAP</u>": Generally accepted accounting principles as in effect from time to time in the United States.

"<u>Governmental Authority</u>": With respect to any Person, any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any body or entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any court or arbitrator having jurisdiction over such Person.

"<u>Hazardous Materials</u>": All materials subject to regulation under any Environmental Law, including, without limitation, materials listed in 49 C.F.R. § 172.010, materials defined as hazardous pursuant to § 101(14) of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, flammable, explosive or radioactive materials, hazardous or toxic wastes or substances, lead-based materials, petroleum or petroleum distillates or asbestos or material containing asbestos, polychlorinated biphenyls, radon gas, urea formaldehyde and any substances classified as being "in inventory," "usable work in process" or similar classification that would, if classified as unusable, be included in the foregoing definition.

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"<u>Highest Required Investment Category</u>": (i) With respect to ratings assigned by Moody's, "Aa2" or "P-1" for one-month instruments, "Aa2" and "P-1" for three-month instruments, "Aa3" and "P-1" for six-month instruments and "Aa2" and "P-1" for instruments with a term in excess of six (6) months, (ii) with respect to ratings assigned by S&P, "A-1" for short-term instruments and "A" for long-term instruments, and (iii) with respect to ratings assigned by Fitch (if such investment is rated by Fitch), "F-1+" for short-term instruments and "AAA" for long-term instruments.

"<u>Increased Costs</u>": Any amounts required to be paid by the Borrower to an Affected Party pursuant to <u>Section</u> <u>2.14</u>.

"<u>Indebtedness</u>": (i) With respect to any Person that is an Obligor under any Loan at any date, the meaning of "Indebtedness" or any comparable definition in the Underlying Instruments for each such Loan, and in any case that "Indebtedness" or such comparable definition is not defined in such Underlying Instruments, without duplication, (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services (other than current liabilities incurred in the ordinary course of business and payable in accordance with customary trade practices) or that is evidenced by a note, bond, debenture or similar instrument or other evidence of indebtedness customary for indebtedness of that type, (b) all obligations of such Person under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (c) all obligations of such Person in respect of acceptances issued or created for the account of such Person, (d) all liabilities secured by any Lien on any property owned by such Person even though such Person has not assumed or otherwise become liable for the payment thereof, (e) all indebtedness, obligations or liabilities of that Person in respect of derivatives, and (f) all obligations under direct or indirect guaranties in respect of obligations (contingent or otherwise) to purchase or otherwise acquire, or to otherwise assure a creditor against loss in respect of, indebtedness or obligations of others of the kind referred to in clauses (a) through (e) of this clause (i), and (ii) for all other purposes, with respect to any Person at any time, (a) all indebtedness of such Person for borrowed money or for the deferred purchase price of property or services (other than current liabilities incurred in the ordinary course of business and payable in accordance with customary trade practices) or that is evidenced by a note, bond, debenture or similar instrument or other evidence of indebtedness customary for indebtedness of that type, (b) all obligations of such Person under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (c) all obligations of such Person in respect of acceptances issued or created for the account of such Person, (d) all liabilities secured by any Lien on any property owned by such Person even though such Person has not assumed or otherwise become liable for the payment thereof, (e) all indebtedness, obligations or liabilities of that Person in respect of derivatives, and (f) all obligations under direct or indirect guaranties in respect of obligations (contingent or otherwise) to purchase or otherwise acquire, or to otherwise assure a creditor against loss in respect of, indebtedness or obligations of others of the kind referred to in clauses (a) through (e) of this clause (ii), but expressly excluding any obligation of such Person to fund any Loan constituting a Delayed Draw Loan.

"<u>Indemnified Amounts</u>": Defined in <u>Section</u> <u>11.1</u>.

"<u>Indemnified Parties</u>": Defined in <u>Section</u> <u>11.1</u>.

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"<u>Indemnified Taxes</u>": (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Transaction Document and (b) to the extent not otherwise described in (a), Other Taxes.

"<u>Independent Manager</u>": An individual duly appointed by the Equityholder to serve as an Independent Manager of the Borrower pursuant to the Borrower Operating Agreement who is designated as an "Independent Manager" and, who, at the time of such appointment, (a) has (i) prior experience as an Independent Manager for a corporation or limited liability company whose charter documents required the unanimous consent of all Independent Managers thereof before such corporation or limited liability company could consent to the institution of bankruptcy or insolvency proceedings against it or could file a petition seeking relief under any applicable federal or state law relating to bankruptcy and (ii) at least three years of employment experience with one or more entities that provide, in the ordinary course of their respective businesses, advisory, management or placement services to issuers of securitization or structured finance instruments, agreements or securities; and (b) is not, and while serving as an Independent Manager will not be, and has not been at any time during the preceding five (5) years: (i) a direct or indirect legal or beneficial owner of any equity interest in the Borrower, the Equityholder or any of their respective Affiliates, (ii) a present or former lessee under any lease, creditor, customer, supplier or contractor of, or other Person who derives any of its profits or revenues or any payments from its activities with, the Borrower, the Equityholder or any of their respective Affiliates, (iii) an employee, officer, other director, member, manager or Affiliate of (A) the Borrower, the Equityholder or any of their respective Affiliates or (B) any other Person described in clause (b)(i) or (b)(ii) above, (iv) affiliated with any entity that is a present or former advisor or consultant to the Borrower, the Equityholder or any of their respective affiliates, or (v) a member of the immediate family of any individual described in clause (b)(i), (b)(ii), (b)(iii) or (b)(iv) above; provided however, that no individual shall be disqualified from serving as an Independent Manager solely on account of (A) his or her service as an Independent Manager or receipt of customary compensation, if any, in exchange therefor from the Borrower, (B) his or her employment by or ownership interest in any reputable, national service entity engaged by the Borrower to fill the position of an Independent Manager required hereunder that (1) is not an Affiliate of the Borrower, the Equityholder or any of their respective Affiliates and (2) regularly provides as a principal component of its business the services of an independent director, independent trustee or independent manager (as determined pursuant to requirements substantially similar in all material respects to those set forth in this definition) to special-purpose, bankruptcy-remote entities, (C) his or her service as an independent manager, independent trustee or independent director (as determined pursuant to requirements substantially similar in all material respects to those set forth in this definition) of another limited or special-purpose, bankruptcy-remote entity that does not own a direct or indirect ownership interest in the Borrower or (D) his or her receipt of customary compensation, if any, in exchange therefor from such other limited or special-purpose bankruptcy-remote entity that does not own a direct or indirect ownership interest in the Borrower.

"<u>Indorsement</u>": The meaning specified in Section 8-102(a)(11) of the UCC, and "<u>Indorsed</u>" has a corresponding meaning.

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"<u>Insolvency Event</u>": With respect to a specified Person, (a) the filing of a decree or order for relief by a court having jurisdiction over such Person or any substantial part of its property in an involuntary case under any 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, order or appointment shall remain unstayed and in effect for a period of sixty (60) consecutive days, (b) the commencement by such Person of a voluntary case under any 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, (c) 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 (d) 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>Insolvency Laws</u>": The Bankruptcy Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments, or similar debtor relief laws from time to time in effect affecting the rights of creditors generally.

"<u>Insolvency Proceeding</u>": Any case, action or proceeding before any court or other Governmental Authority relating to any Insolvency Event.

"<u>Institutional Lender</u>": The meaning specified in the Preamble hereto and each financial institution other than a Conduit Lender which may from time to time become a Lender hereunder by executing and delivering a Joinder Supplement to the Administrative Agent and the Borrower as contemplated by <u>Section</u> <u>2.1(d)</u>.

"<u>Instrument</u>": The meaning specified in Section 9-102(a)(47) of the UCC.

"<u>Insurance Policy</u>": With respect to any Loan, an insurance policy covering liability and physical damage to, or loss of, the Related Property.

"<u>Insurance Proceeds</u>": Any amounts received on or with respect to a Loan under any Insurance Policy or with respect to any condemnation proceeding or award in lieu of condemnation which is neither required to be used to restore, improve or repair the related real estate nor required to be paid to the Obligor under the Underlying Instruments.

"<u>Interest</u>": For each Accrual Period and each Advance outstanding, the sum of the products (for each day during such Accrual Period) of:

IR x P x <u>1</u>

D

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; where: |  |  |
|  | IR | the Interest Rate applicable on such day; |
|  | P | the principal amount of such Advance on such day; and |
|  | D | 360 or, to the extent the Interest Rate is (i) the Base Rate, 365 or 366 days, as applicable or (ii) calculated with a Benchmark of Daily Simple CORRA, 365 days; |

---

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*provided* that, (i) no provision of this Agreement shall require the payment or permit the collection of Interest in excess of the maximum permitted by Applicable Law, and (ii) Interest shall not be considered paid by any distribution if at any time such distribution is rescinded or must otherwise be returned for any reason.

"<u>Interest Collections</u>": Any and all amounts of collections received with respect to the Collateral other than Principal Collections that are deposited into the Collection Account, or received by or on behalf of the Borrower or the Collateral Manager in respect of a Loan, whether in the form of cash, checks, wire transfers, electronic transfers or any other form of cash payment.

"<u>Interest Collections Account</u>": Defined in <u>Section</u> <u>6.4(f)</u>.

"<u>Interest Coverage Ratio</u>": With respect to any Loan for any Relevant Test Period, the meaning of "Interest Coverage Ratio" or any comparable definition in the Underlying Instruments for each such Loan, and in any case that "Interest Coverage Ratio" or such comparable definition is not defined in such Underlying Instruments, the ratio of (a) EBITDA to (b) Interest Obligations as calculated by the Borrower and the Collateral Manager in good faith using information from and calculations consistent with the relevant compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Underlying Instruments.

"<u>Interest Obligations</u>": With respect to any period and any Loan, for the Obligor on such Loan and, to the extent included in the corresponding calculation of EBITDA, any parent that is obligated pursuant to the Underlying Instruments for such Loan (determined on a consolidated basis without duplication in accordance with GAAP), the meaning of "Interest Obligations" or any comparable definition in the Underlying Instruments for each such Loan, and in any case that "Interest Obligations" or such comparable definition is not defined in such Underlying Instruments, all cash interest in respect of Indebtedness (including the interest component of any payments in respect of Capital Lease Obligations) accrued during such period (whether or not actually paid during such period).

"<u>Interest Rate</u>": Subject to <u>Section</u> <u>2.14(e)</u> or the last sentence of <u>Section</u> <u>13.1</u>, for any Accrual Period and for each Advance outstanding for each day during such Accrual Period, a rate equal to the Applicable Reference Rate.

"<u>Investment</u>": With respect to any Person, any direct or indirect loan, advance or investment by such Person in any other Person, whether by means of share purchase, capital contribution, loan or otherwise, excluding the making or acquisition of Loans and the acquisition of Equity Securities otherwise permitted by the terms hereof which are related to such Loans.

"<u>Investor</u>": Prior to the BDC Election Date, initially, each Limited Partner (as defined in the Equityholder Operating Agreement) of the Equityholder as of the Closing Date and thereafter, in the event that an additional Investor becomes a limited partner of the Equityholder, such additional Investor. On the BDC Election Date, initially, each member of the Equityholder and after the BDC Election Date, in the event of an additional member of the Equityholder, such additional Investor.

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"<u>IRS</u>" means the United States Internal Revenue Service.<u> </u>

"<u>Joinder Supplement</u>": An agreement among the Borrower, a Lender, a Lender Agent and the Administrative Agent in the form of <u>Exhibit</u> <u>K</u> to this Agreement (appropriately completed) delivered in connection with a Person becoming a Lender hereunder after the Closing Date, as contemplated by <u>Section</u> <u>2.1(d)</u>.

"<u>Lender</u>": The meaning specified in the Preamble hereto. For the avoidance of doubt, the Swingline Lender shall constitute a "Lender" with respect to the repayment of Swingline Advances for all purposes hereunder.

"<u>Lender Agent</u>": With respect to (i) each Conduit Lender which may from time to time become party hereto, the Person designated as the "Lender Agent" with respect to such Lender in the applicable Joinder Supplement, and (ii) each Institutional Lender which may from time to time become a party hereto, each shall be deemed to be its own Lender Agent.

"<u>Lender Assignment</u>": Defined in <u>Section</u> <u>13.16</u>.

"<u>Lender Fee Letter</u>": Each fee letter agreement (including the Wells Fargo Fee Letter) that shall be entered into by and among the Borrower, the Collateral Manager, the applicable Lender and its related Lender Agent in connection with the transactions contemplated by this Agreement, as amended, modified, waived, supplemented, restated or replaced from time to time.

"<u>Lien</u>": Any mortgage, lien, pledge, charge, assignment by way of security, right, claim, security interest or encumbrance of any kind of or on any Person's assets or properties in favor of any other Person (including any UCC financing statement or any similar instrument filed against such Person's assets or properties). For the avoidance of doubt, notwithstanding the satisfaction of the eligibility criteria for any Loan acquired by the Borrower hereunder, customary restrictions on transfers of a Loan pursuant to the related Underlying Instruments shall not be deemed to be a "Lien".

"<u>Lien Release Dividend</u>": Defined in <u>Section</u> <u>2.19(e)</u>.

"<u>Lien Release Dividend Date</u>": The date specified by the Borrower, which date may be any Business Day during the Reinvestment Period, provided written notice is delivered in accordance with <u>Section</u> <u>2.19(e)</u>.

"<u>Liquidation Expenses</u>": With respect to any Loan, the aggregate amount of all out-of-pocket expenses reasonably incurred by the Collateral Manager (including amounts paid to any subservicer) in accordance with the Collateral Manager's customary procedures in connection with the repossession, refurbishing and disposition of any Related Property securing such Loan upon or after the expiration or earlier termination of such Loan, and other out-of-pocket costs related to the liquidation of any such assets, as documented by the Collateral Manager upon the request of the Administrative Agent, in writing providing a breakdown of the Liquidation Expenses for such Loan, along with any supporting documentation therefor.

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"<u>Liquidity Agreement</u>": Means any agreement entered into in connection with this Agreement pursuant to which a Liquidity Bank agrees to make purchases from or advances to, or purchase assets from, any Conduit Lender in order to provide liquidity support for such Conduit Lender's Advances hereunder.

"<u>Liquidity Bank</u>": The Person or Persons who provide liquidity support to any Conduit Lender pursuant to a Liquidity Agreement in connection with the issuance by such Conduit Lender of Commercial Paper Notes.

"<u>Loan</u>": Any commercial loan or note that the Borrower originates or acquires from a third party seller or the Contributor, excluding the Retained Interest and Excluded Amounts and which loan is listed on the Loan Tape until such loan is sold or substituted in accordance with <u>Section</u> <u>2.17</u>, <u>2.18</u> or <u>2.19</u> hereof.

"<u>Loan Checklist</u>": An electronic or hard copy, as applicable, of a checklist, in the form of <u>Exhibit</u> <u>L</u>, delivered by or on behalf of the Borrower to the Collateral Custodian, for each Loan that identifies each of the items which constitute the Required Loan Documents.

"<u>Loan Rate</u>": For each Loan in a Collection Period, the current cash pay interest rate for such Loan in such period, as specified in the related Underlying Instruments.

"<u>Loan Register</u>": Defined in <u>Section</u> <u>5.3(l)</u>.

"<u>Loan Tape</u>": The loan tape to be delivered in connection with each Collateral Management Report and on each applicable Funding Date, which tape shall include (but not be limited to) the aggregate OLB of all Loans and, with respect to each Loan, the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) name and number of the related Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether such Obligor is an Affiliate of the Borrower, the Equityholder or Collateral Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) calculation of the Senior Net Leverage Ratio for the Relevant Test Period as calculated on the related Funding Date of such Loan (*provided* that, if any other positions in such Loan existed on its Funding Date then such calculation shall include the Senior Net Leverage Ratio utilized for the position with the earliest of such other Funding Dates), and for the most recent Relevant Test Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) calculation of the Interest Coverage Ratio for the Relevant Test Period as calculated on the related Funding Date of such Loan (*provided* that, if any other positions in such Loan existed on its Funding Date then such calculation shall include the Interest Coverage Ratio utilized for the position with the earliest of such other Funding Dates), and for the most recent Relevant Test Period;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) calculation of the Total Net Leverage Ratio for the Relevant Test Period as calculated on the related Funding Date of such Loan (*provided* that, if any other positions in such Loan existed on its Funding Date then such calculation shall include the Total Net Leverage Ratio utilized for the position with the earliest of such other Funding Dates), and for the most recent Relevant Test Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Exposure Amount (if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) collection status (number of days past due);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) loan status (whether in default or on non-accrual status);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) whether such Loan is a Designated Loan (Y/N);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) scheduled final maturity date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) date and amount of next Scheduled Payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) loan rate of interest (and reference rate);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) benchmark floor (if applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) OLB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) par amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Assigned Value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Loan type (*e.g.*, Broadly Syndicated Loan, Middle Market Loan, DIP Loan, etc.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) industry classification;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) gross total debt for the most recent Relevant Test Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) cash for the most recent Relevant Test Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) trailing twelve-month EBITDA for the most recent Relevant Test Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) the as-of date for each of the statistics in the foregoing clauses (c), (d), (e), (w), (x) and (y);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) initial tranche size;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) whether such Loan has been subject to a Value Adjustment Event (and of what type);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) whether such Loan has been subject to any waiver, amendment, restatement, supplement or other modification (and whether such action constitutes a Material Modification);

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) as of the reporting date of the last fiscal year-end financial statements with respect to such Obligor, maintenance capital expenditure or, if unavailable, a good faith approximation by the Collateral Manager of the maintenance capital expenditure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) as of the reporting date of the last fiscal year-end financial statements with respect to such Obligor, cash taxes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) the applicable Eligible Currency for such Loan.

"<u>Margin Stock</u>": "Margin Stock" as defined under Regulation U.

"<u>Material Adverse Effect</u>": With respect to any event or circumstance, means a material adverse effect on (a) the business, financial condition, operations, performance or properties of the Collateral Manager or the Borrower, (b) the validity, enforceability or collectability of this Agreement or any other Transaction Document or the validity, enforceability or collectability of the Loans generally or any material portion of the Loans, (c) the rights and remedies of the Administrative Agent, the Collateral Agent, the Lenders, the Lender Agents and the Secured Parties with respect to matters arising under this Agreement or any other Transaction Document, (d) the ability of each of the Borrower or the Collateral Manager to perform their respective obligations under this Agreement or any Transaction Document to which it is a party, or (e) the status, existence, perfection, priority or enforceability of the Administrative Agent's, each Lender Agent's, the Collateral Agent's, or the other Secured Parties', lien on the Collateral.

"<u>Material Modification</u>": Any amendment or waiver of, or modification or supplement to, an Underlying Instrument governing a Loan executed or effected on or after the date on which the Borrower acquired such Loan from any Person that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) waives one or more interest payments, or permits any interest due in cash to be deferred or capitalized and added to the principal amount of such Loan (other than as permitted in the applicable Underlying Instruments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) contractually or structurally subordinates such Loan by operation of a priority of payments, turnover provisions, the transfer of assets in order to limit recourse to the related Obligor or the granting of Liens (other than "permitted liens" as defined in the Underlying Instruments for such Loan or such comparable definition if "permitted liens" is not defined therein) on any of the Related Property securing such Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) substitutes, alters or releases the Related Property securing such Loan (other than as permitted pursuant to the applicable Underlying Instrument), and each such substitution, alteration or release, as determined in the sole discretion of the Administrative Agent, materially and adversely affects the value of such Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) delays or extends (i) the maturity date for such Loan or (ii) the required scheduled principal payments (as and when due), including excess cash flow sweeps, in any way that increases the Weighted Average Life of such Loan by 0.50 years or more;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) amends, waives, forbears, supplements or otherwise modifies (i) the meaning of "Senior Net Leverage Ratio," "Interest Coverage Ratio," "Permitted Liens" or "Total Net Leverage Ratio" or any respective comparable definitions in the Underlying Instruments for such Loan or (ii) any term or provision of such Underlying Instruments referenced in or utilized in the calculation of the "Senior Net Leverage Ratio," "Interest Coverage Ratio," "Permitted Liens" or "Total Net Leverage Ratio" or any respective comparable definitions for such Loan (including any adjustment to EBITDA or "Adjusted EBITDA" or similar definition), in either case in a manner that, in the sole judgment of the Administrative Agent, is materially adverse to the Secured Parties; *provided* that, in connection with any Revenue Recognition Implementation or any Operating Lease Implementation, the Administrative Agent may waive any Material Modification resulting from such implementation pursuant to this clause (e); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) reduces, delays or waives any or all of the principal amount due under such Loan as and when due (including any scheduled or required excess cash flow sweeps).

"<u>Measurement Date</u>": Each of the following: (i) the Closing Date; (ii) each Determination Date; (iii) the date of any Borrowing Notice or Repayment Notice, as applicable; (iv) any date on which a substitution or repurchase of a Loan occurs; (v) any Optional Sale Date; (vi) the date the Assigned Value of any Loan is adjusted by the Administrative Agent as a result of the occurrence of any "Value Adjustment Event"; (vii) the date as of which any Collateral Management Report, as provided for in <u>Section</u> <u>6.8(b)</u>, is calculated; (viii) the date of any release of Principal Collections requested pursuant to <u>Section</u> <u>2.8(b)</u>; (ix) each Funding Date; (x) each Discretionary Sale Date and (xi) each Lien Release Dividend Date.

"<u>Middle Market Loan</u>": A Loan that would be a Broadly Syndicated Loan, but fails to satisfy clause (i), (iv) or (vi) of the definition of "Broadly Syndicated Loan."

"<u>Minimum Liquidity Amount</u>": An amount equal to (a) prior to the end of the Reinvestment Period, 5.0% of the Facility Amount or (b) after the Reinvestment Period, the Minimum Liquidity Amount that existed as of the last day of the Reinvestment Period; *provided* that, at any time after the Reinvestment Period, the Minimum Liquidity Amount shall be permanently reduced by the Borrower's use of any amounts constituting Unencumbered Liquidity to (i) cure a Borrowing Base Deficiency within the time periods set forth in <u>Section</u> <u>10.1(h)</u> or (ii) reduce the Advances Outstanding; *provided further* that, the Minimum Liquidity Amount shall not be reduced to an amount lower than $10,000,000.

"<u>Minimum Required Equity Amount</u>": As of any Measurement Date, an amount equal to the greater of (i) the sum of the Adjusted Balances of all Eligible Loans to the three largest Obligors and (ii) $150,000,000.

"<u>Moody's</u>": Moody's Investors Service, Inc., and any successor thereto.

"<u>Multiemployer Plan</u>": A "multiemployer plan" as defined in Section 4001(a)(3) of ERISA to which the Borrower, the Collateral Manager or any ERISA Affiliate, at any time during the current year or the preceding six (6) years, contributed or had any obligation to contribute or with respect to which any of them had any liability.

"<u>NAICS Codes</u>": The North American Industry Classification System codes by four digits.

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"<u>Noteless Loan</u>": A Loan (a) with respect to which the Underlying Instruments (i) do not require the Obligor to execute and deliver a promissory note to evidence the indebtedness created under such Loan or (ii) do not require any holder of the indebtedness created under such Loan to affirmatively request a promissory note from the related Obligor or (b) for which the Borrower does not receive a promissory note.

"<u>Obligor</u>": With respect to any Loan, any Person or Persons obligated to make payments pursuant to or with respect to such Loan, including any guarantor thereof. For purposes of determining whether any Loan is made to an Eligible Obligor, all Loans included as part of the Collateral or to be transferred to the Collateral the Obligor of which is an Affiliate of another Obligor shall be aggregated with all Loans of such Affiliate Obligor; for example, if Corporation A is an Affiliate of Corporation B, and the sum of the OLB of all of Corporation A's Loans included as part of the Collateral constitutes 10% of the Borrowing Base and the sum of the OLB all of Corporation B's Loans included as part of the Collateral constitutes 10% of the Borrowing Base, the combined Obligor concentration for Corporation A and Corporation B would be 20%.

"<u>Officer's Certificate</u>": A certificate signed by a Responsible Officer of the Person providing the applicable certification, as the case may be.

"<u>OLB</u>": As of any Measurement Date, with respect to any Loan (or portion thereof), the principal balance of such Loan outstanding (exclusive of any accrued interest and Accreted Interest) as of the date it is or was transferred to the Borrower, after application of principal payments received on or before such date, *minus* the sum of (i) the principal portion of the Scheduled Payments on such Loan received during each Collection Period ending prior to the most recent Payment Date, and (ii) all other Principal Collections on such Loan, to the extent deposited by the Collateral Manager in the Collection Account. Any outstanding portion of a Loan which exceeds the limitation set forth in clause (c) of the definition of Eligible Loan will be excluded from the calculation of the OLB of such Loan (and shall not be included unless both (x) such portion no longer exceeds such limitation and (y) such portion has been approved by the Administrative Agent in its sole discretion).

"<u>Operating Lease Implementation</u>": The implementation by an Obligor of IFRS 16/ASC 842.

"<u>Opinion of Counsel</u>": A written opinion of counsel, which opinion and counsel are acceptable to the Administrative Agent in its sole discretion.

"<u>Optional Sale</u>": Defined in <u>Section</u> <u>2.18(a)</u>.

"<u>Optional Sale Date</u>": Any Business Day, provided ten (10) Business Days' written notice is given in accordance with <u>Section</u> <u>2.18(a)</u>.

"<u>Other Taxes</u>": All present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Transaction Document, except any such Taxes that are imposed as a result of a present or former connection between such Secured Party and the relevant jurisdiction (other than any such connection arising from such Secured Party having executed, delivered or performed its obligations or received a payment under, or enforced this Agreement).

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"<u>Partial PIK Loan</u>": A PIK Loan on which, at the time of its acquisition by the Borrower, requires cash interest to be paid a rate equal to or in excess of (a) the applicable benchmark rate *plus* 3.0%, if such Loan is a Floating Rate Loan with an interest rate based on SOFR (or such other foreign currency reference rate, as applicable) applicable to such Loan pursuant to the Underlying Instruments for such Loan, (b) the Applicable Prime Rate, if such Loan is a Floating Rate Loan with an interest rate based on the Applicable Prime Rate, and (c) 6.0%, if such Loan is a Fixed Rate Loan.

"<u>Participant Register</u>": Defined in <u>Section</u> <u>13.16(b)</u>.

"<u>Payment Date</u>": Quarterly on the 15th day of each January, April, July, and October, or, if such day is not a Business Day, the next succeeding Business Day, commencing in January 2025.

"<u>Payment Recipient</u>": The meaning specified in <u>Section</u> <u>12.3(a)</u>.

"<u>Pending Capital Call</u>": Any Capital Call Notice that has been delivered to the Investors and the applicable Investors have not yet contributed capital to the Equityholder as required thereby, but with respect to which such Investors are not in default.

"<u>Pension Plan</u>": Defined in <u>Section</u> <u>4.1(bb)</u>.

"<u>Permitted Investments</u>": Means negotiable instruments or securities or other investments that (i) except in the case of demand or time deposits, investments in money market funds and Eligible Repurchase Obligations, are represented by instruments in bearer or registered form or ownership of which is represented by book entries by a Clearing Agency or by a Federal Reserve Bank in favor of depository institutions eligible to have an account with such Federal Reserve Bank who hold such investments on behalf of their customers, (ii) as of any date of determination, mature by their terms on or prior to the Business Day preceding the next Payment Date, and (iii) evidence:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) direct obligations of, and obligations fully guaranteed as to full and timely payment by, the United States (or by any agency thereof to the extent such obligations are backed by the full faith and credit of the United States);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) demand deposits, time deposits or certificates of deposit of depository institutions or trust companies incorporated under the laws of the United States or any state thereof and subject to supervision and examination by federal or state banking or depository institution authorities; *provided* that, at the time of the Borrower's investment or contractual commitment to invest therein, the commercial paper, if any, and short-term unsecured debt obligations (other than such obligation whose rating is based on the credit of a Person other than such institution or trust company) of such depository institution or trust company shall have a credit rating from Fitch and each Rating Agency in the Highest Required Investment Category granted by Fitch and such Rating Agency;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Eligible Repurchase Obligations with a rating acceptable to the Rating Agencies and Fitch, which in the case of S&P, shall be "A-1" and in the case of Fitch shall be "F-1+";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) commercial paper, or other short term obligations, having, at the time of the Borrower's investment or contractual commitment to invest therein, a rating in the Highest Required Investment Category granted by each Rating Agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) investments in taxable money market funds or other regulated investment companies having, at the time of the Borrower's investment or contractual commitment to invest therein, a rating of the Highest Required Investment Category from each Rating Agency and Fitch (if rated by Fitch); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) demand deposits, time deposits or certificates of deposit that are fully insured by the FDIC and either have a rating on their certificates of deposit or short-term deposits from Moody's and S&P of "P-1" and "A-1," respectively, and if rated by Fitch, from Fitch of "F-1+".

The Collateral Agent may, pursuant to the direction of the Collateral Manager or the Administrative Agent, as applicable, purchase or sell to itself or an Affiliate, as principal or agent, the Permitted Investments described above. Permitted Investments may include those investments in which the Collateral Agent or any of its Affiliates provides services and receives reasonable compensation. The Collateral Agent and the Collateral Custodian shall have no duty to determine or oversee compliance with the foregoing.

"<u>Permitted Liens</u>": Any of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced (a) Liens for Taxes if such Taxes shall not at the time be due and payable or if a Person shall currently be contesting the validity thereof in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of such Person, (b) Liens imposed by law, such as materialmen's, warehousemen's, mechanics', carriers', workmen's and repairmen's Liens and other similar Liens, arising by operation of law in the ordinary course of business for sums that are not overdue or are being contested in good faith and (c) Liens granted pursuant to or by the Transaction Documents.

"<u>Permitted Refinancing</u>": Any refinancing transaction undertaken by the Equityholder, the Borrower or any Affiliate thereof that is secured, directly or indirectly, by any Loan currently or formerly included in the Collateral or any portion thereof or any interest therein released from the Lien of this Agreement.

"<u>Permitted RIC Distribution</u>": On or after the BDC Election Date, distributions on any Payment Date to the Equityholder (from the Collection Account) to the extent required to allow the Equityholder to make sufficient distributions to qualify as a regulated investment company, and to otherwise eliminate federal or state income or excise taxes payable by the Equityholder in or with respect to any taxable year of the Equityholder (or any calendar year, as relevant); provided that the amount of any such payments made in or with respect to any such taxable year (or calendar year, as relevant) of the Equityholder shall not exceed 115% of the amounts that the Borrower

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would have been required to distribute to the Equityholder to: (i) allow the Borrower to satisfy the minimum distribution requirements that would be imposed by Section 852(a) of the Code (or any successor thereto) to maintain its eligibility to be taxed as a regulated investment company for any such taxable year, (ii) reduce to zero for any such taxable year the Borrower's liability for federal income taxes imposed on (x) its investment company taxable income pursuant to Section 852(b)(1) of the Code (or any successor thereto), or (y) its net capital gain pursuant to Section 852(b)(3) of the Code (or any successor thereto), and (iii) reduce to zero the Borrower's liability for federal excise taxes for any such calendar year imposed pursuant to Section 4982 of the Code (or any successor thereto), in the case of each of the foregoing clause (i), (ii) or (iii), calculated assuming that the Borrower had qualified to be taxed as a regulated investment company under the Code.

"<u>Permitted Securitization</u>": Any private or public term or conduit securitization transaction (a) undertaken by the Equityholder, the Borrower or any Affiliate thereof that is secured, directly or indirectly, by any Loan currently or formerly included in the Collateral or any portion thereof or any interest therein released from the Lien of this Agreement, including, without limitation, any collateralized loan obligation or collateralized debt obligation offering or other asset securitization and (b) in the case of a term securitization in which the Equityholder, an Affiliate thereof, an underwriter or a placement agent has agreed to purchase or place 100% of the equity and non-investment grade tranches of notes issued in such term securitization transaction. For the avoidance of doubt, any such party agreeing to so purchase or place may designate other Persons as purchasers of such equity provided such party or parties remain primarily liable therefor if such designees fail to purchase or place in connection with the closing date of such term securitization and/or, after the closing of such term securitization, may transfer equity it purchases at the closing thereof.

"<u>Person</u>": An individual, partnership, corporation, company, limited liability company, limited liability partnership, joint stock company, trust (including a statutory or business trust), estate, unincorporated association, sole proprietorship, joint venture, nonprofit corporation, group, sector, government (or any agency, instrumentality or political subdivision thereof), territory or other entity or organization.

"<u>PIK Loan</u>": A Loan on which any portion of the interest accrued for a specified period of time or until the maturity thereof is, at the option of the Obligor or pursuant to conditions specified (in each case, under the related Underlying Instrument), added to the principal balance of such Loan or otherwise deferred rather than being paid in cash.

"<u>PIK Interest</u>": Interest accrued on a Loan that is added to the principal balance of such Loan or otherwise deferred rather than being paid in cash.

"<u>Portfolio Subsidiary</u>": Any Person in which the Borrower (i) has made an investment in the ordinary course of business that is accounted for under GAAP as a portfolio investment of the Borrower, (ii) has received an equity interest in connection with an REO Asset, (iii) has received an "equity kicker" in connection with its acquisition of any Loan or (iv) owns an equity interest and that is created as a "blocker" vehicle to address tax-specific issues.

"<u>Predecessor Collateral Manager Work Product</u>": Defined in <u>Section</u> <u>6.13(d)</u>.

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"<u>Prepayment Penalty</u>": An amount, payable *pro rata* to each Lender Agent (for the account of the applicable Lender), equal to (i) to the extent the Agreement is terminated or the Facility Amount is reduced in part and the Prepayment Penalty is required to be paid pursuant to <u>Section</u> <u>2.3(a)</u> on or prior to the first anniversary of the Closing Date, 2.00% of either (as applicable) (x) the Facility Amount or (y) the amount of such partial reduction, and (ii) to the extent the Agreement is terminated or the Facility Amount is reduced in part and the Prepayment Penalty is required to be paid pursuant to <u>Section</u> <u>2.3(a)</u> on or prior to the second anniversary of the Closing Date, but after the first anniversary of the Closing Date, 1.00% of either (as applicable) (x) the Facility Amount or (y) the amount of such partial reduction; *provided* that, in the foregoing clauses (i) and (ii), the Prepayment Penalty shall be calculated without giving effect to the first proviso in the definition of "Facility Amount".

"<u>Prime Rate</u>": The greater of (x) 0.00% and (y) the rate announced by Wells Fargo from time to time as its prime rate in the United States, such rate to change as and when such designated rate changes. The Prime Rate is not intended to be the lowest rate of interest charged by Wells Fargo or any other specified financial institution in connection with extensions of credit to debtors.

"<u>Principal Collections</u>": Any and all amounts of Collections received in respect of any principal due and payable under the Loans from or on behalf of Obligors that are deposited into the Collection Account (including, without limitation, the principal portion of any Scheduled Payment), or received by or on behalf of the Borrower by the Collateral Manager in respect of a Loan, and all Insurance Proceeds and Recoveries, whether in the form of cash, checks, wire transfers, electronic transfers or any other form of cash payment. For the avoidance of doubt, "Principal Collections" shall not include amounts on deposit in the Unfunded Exposure Account.

"<u>Principal Collections Account</u>": Defined in <u>Section</u> <u>6.4(f)</u>.

"<u>Proceeds</u>": With respect to any Collateral, all property that is receivable or received when such Collateral is collected, sold, liquidated, foreclosed, exchanged, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes all rights to payment with respect to any insurance relating to such Collateral.

"<u>Prohibited Transferee</u>": Any (i) so-called "vulture fund," "loan-to-own fund," distressed debt fund or other fund that is similar to the foregoing, in each case, whose primary business is distressed investing, (ii) hedge fund, non-bank asset manager, credit opportunities fund or specialty finance company, in each case, that directly and routinely competes with Audax's direct lending business and which derives substantially all of its revenue from lending to and making investments in middle market companies or (iii) banking institution with bank level long term unsecured debt rating of less than "Baa3" from Moody's and less than "BBB-" from S&P.

"<u>Pro Rata Share</u>": With respect to a Lender, the percentage obtained by dividing the Commitment of such Lender (as determined under clause (a) of the definition of Commitment) by the aggregate Commitments of all the Lenders (as determined under clause (a) of the definition of Commitment).

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"<u>Purchase Price</u>": With respect to any Loan, an amount (expressed as a percentage) equal to (i) the purchase price paid by the Borrower for such Loan (exclusive of any accrued interest, Accreted Interest and original issue discount) *divided by* (ii) the principal balance of such Loan outstanding as of the date of such purchase (exclusive of any accrued interest, Accreted Interest and original issue discount); *provided* that, any Loan acquired by the Borrower with a "Purchase Price" equal to or greater than 95% (including, for the avoidance of doubt, in excess of 100%) shall be deemed to have a "Purchase Price" equal to 100%.

"<u>QFC</u>": The meaning assigned to the term "qualified financial contract" in, and interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

"<u>Qualified Institution</u>": 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 issuer rating of "BBB" or better by S&P and "Baa2" or better by Moody's or (2) a short-term unsecured debt rating or certificate of deposit rating of "A-1" or better by S&P or "P-1" or better by Moody's, (b) the parent corporation of which has either (1) a long-term issuer rating of "BBB" or better by S&P and "Baa2" or better by Moody's or (2) a short-term unsecured debt rating or certificate of deposit rating of "A-1" or better by S&P and "P-1" or better by Moody's or (c) is otherwise acceptable to the Administrative Agent and (ii) the deposits of which are insured by the Federal Deposit Insurance Corporation.

"<u>Rating Agency</u>": Each of S&P, Moody's, Fitch and any other rating agency that has been requested to issue a rating with respect to the commercial paper notes issued by any Conduit Lender.

"<u>Records</u>": All documents relating to the Loans, including books, records and other information executed in connection with the origination or acquisition of the Collateral or maintained with respect to the Collateral and the related Obligors in which the Borrower or the Collateral Manager have obtained an interest.

"<u>Recoveries</u>": As of the time any Related Property with respect to any Loan is sold, discarded or abandoned (after a determination by the Collateral Manager that such Related Property has little or no remaining value) or otherwise determined to be fully liquidated by the Collateral Manager in accordance with the Collateral Management Standard (or such similar policies and procedures utilized by the Collateral Manager in servicing the Loans), the proceeds from the sale of the Related Property, the proceeds of any related Insurance Policy, any distributions from a Portfolio Subsidiary formed to hold an REO Asset, any other recoveries with respect to such Loan, the Related Property, and amounts representing late fees and penalties, net of Liquidation Expenses and amounts, if any, received that are required under such Loan, to be refunded to the related Obligor.

"<u>Register</u>": Defined in <u>Section</u> <u>13.16(b)</u>.

"<u>Registered</u>": With respect to any registration-required obligation within the meaning of Section 163(f)(2) of the Code, a debt obligation that is in registered form within the meaning of Section 5f.103-1(c) of the Treasury Regulations and Section 1.163-5(b) of the proposed Treasury Regulations.

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"<u>Regulation</u> <u>U</u>": Regulation U of the Board of Governors of the Federal Reserve System, 12 C.F.R. §221, or any successor regulation.

"<u>Reinvestment Notice</u>": any reinvestment of Principal Collections under <u>Section</u> <u>2.8(b)</u>, in the form of <u>Exhibit</u> <u>A</u><u>-3</u>.

"<u>Reinvestment Period</u>": The period commencing on the Closing Date and ending on the earliest to occur of (i) the Reinvestment Period End Date (or such later date as is agreed to in writing by the Borrower, the Collateral Manager, the Administrative Agent and the Lenders pursuant to <u>Section</u> <u>2.1(c)</u>), (ii) the Termination Date and (iii) the date of any voluntary termination by the Borrower pursuant to <u>Section</u> <u>2.3(a)</u>.

"<u>Reinvestment Period End Date</u>": October 8, 2027.

"<u>Related Party</u>": With respect to any Person, such Person's Affiliates and the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors and representatives of such Person and of such Person's Affiliates.

"<u>Related Property</u>": With respect to a Loan, any property or other assets designated and pledged or mortgaged as collateral to secure repayment of such Loan, including, without limitation, mortgaged property and/or a pledge of the stock, membership or other ownership interests in the related Obligor and all Proceeds from any sale or other disposition of such property or other assets.

"<u>Related Security</u>": As used herein, all of the Borrower's right, title and interest in and to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any Related Property securing a Loan and all Recoveries related thereto, all payments paid in respect thereof and all monies due, to become due and paid in respect thereof accruing after the applicable Funding Date and all related liquidation proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Required Loan Documents, Collateral Management Files related to any Loan and any Records;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all Insurance Policies with respect to any Loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Liens, guaranties, indemnities, warranties, letters of credit, accounts, bank accounts and property subject thereto from time to time purporting to secure or support payment of any Loan, together with all UCC financing statements, mortgages or similar filings signed or authorized by an Obligor relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Accounts, to the extent amounts on deposit therein or credited thereto relate to the Collateral, together with all cash and investments in each of the foregoing other than amounts earned on investments therein (excluding any Excluded Amounts that may be on deposit therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all records (including computer records) evidencing the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all collections, income, payments, proceeds and other benefits of each of the foregoing.

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"<u>Relevant Governmental Body</u>": (a) With respect to a Benchmark Replacement in respect of Obligations, interest, fees, commissions or other amounts denominated in, or calculated with respect to, Dollars, the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto and (b) with respect to a Benchmark Replacement in respect of Obligations, interest, fees, commissions or other amounts denominated in, or calculated with respect to, any Eligible Currency other than Dollars, (1) the central bank for the Eligible Currency in which such amounts are denominated, or calculated with respect to, or any central bank or other supervisor which is responsible for supervising either (A) such Benchmark Replacement or (B) the administrator of such Benchmark Replacement or (2) any working group or committee officially endorsed or convened by (A) the central bank for the Eligible Currency in which such amounts are denominated, or calculated with respect to, (B) any central bank or other supervisor that is responsible for supervising either (i) such Benchmark Replacement or (ii) the administrator of such Benchmark Replacement, (C) a group of those central banks or other supervisors or (D) the Financial Stability Board or any part thereof.

"<u>Relevant Test Period</u>": With respect to any Loan, the relevant test period for the reporting and calculation of the applicable financial covenants included in the Underlying Instruments, including financial covenants comparable to Total Net Leverage Ratio, Senior Net Leverage Ratio or Interest Coverage Ratio, as applicable, for such Loan in the Underlying Instruments or, if no such period is provided for therein, for Obligors delivering monthly financing statements, each period of the last 12 consecutive reported calendar months, and for Obligors delivering quarterly financing statements, each period of the last four consecutive reported fiscal quarters of the principal Obligor on such Loan; *provided* that, with respect to any Loan for which the relevant test period is not provided for in the Underlying Instruments, if an Obligor is a newly-formed entity as to which twelve (12) consecutive calendar months have not yet elapsed, "Relevant Test Period" shall initially include the period from the date of formation of such Obligor to the end of the twelfth calendar month or fourth fiscal quarter (as the case may be) from the date of formation, and shall subsequently include each period of the last twelve (12) consecutive reported calendar months or four consecutive reported fiscal quarters (as the case may be) of such Obligor.

"<u>REO Asset</u>": With respect to any Loan, the interest of the Borrower in any Related Property that has been foreclosed or realized on or repossessed from the current Obligor by or on behalf of the Borrower and any other secured parties under the Underlying Instruments, and is being managed by the Collateral Manager on behalf of and in the name of any Portfolio Subsidiary, for the benefit of the Borrower and the Secured Parties.

"<u>REO Management Standard</u>": Defined in <u>Section</u> <u>6.5(b)</u>.

"<u>Repayment Notice</u>": Each written notice required to be delivered by the Borrower in respect of (a) any reduction of the Advances Outstanding pursuant to <u>Section</u> <u>2.3(b)</u>, in the form of <u>Exhibit</u> <u>A</u><u>-2</u> or (b) any termination in whole or reduction in part of the Facility Amount pursuant to <u>Section</u> <u>2.3(a)</u>, in the form of <u>Exhibit</u> <u>A</u><u>-2</u>.

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"<u>Replaced Loan</u>": Defined in <u>Section</u> <u>2.17(a)(i)</u>.

"<u>Reportable Event</u>": Means any of the events set forth in Section 4043(c) of ERISA, other than an event for which the thirty (30) day notice period has been waived.

"<u>Reporting Date</u>": The date that is two (2) Business Days prior to the 15<sup>th</sup> of each calendar month (unless in such month a Payment Date occurs in which case two (2) Business Days prior to such Payment Date).

"<u>Required Lenders</u>": At any time, (i) so long as Wells Fargo (or an Affiliate of Wells Fargo) is the Administrative Agent hereunder, Wells Fargo (as a Lender hereunder) and its successors and assigns and (ii) the Lenders (including Wells Fargo) representing an aggregate of at least 51% of the aggregate Commitments of the Lenders then in effect or, if the Commitments have expired or been terminated or otherwise reduced to zero, Lenders whose aggregate principal amount of Advances Outstanding represent at least 51% of the aggregate principal amount of all Advances Outstanding; *provided* that, the Commitment of, and the portion of any outstanding Advances, as applicable, held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of the Required Lenders.

"<u>Required Loan Documents</u>": For each Loan, the following documents or instruments, in each case as specified on the related Loan Checklist:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) unless such Loan is a Noteless Loan, the original executed promissory note (or, in the case of a lost note, a copy of the executed underlying promissory note accompanied by an original executed affidavit and indemnity from the Borrower to the Collateral Agent);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) unless such Loan is a Noteless Loan, an unbroken chain of endorsements from each prior holder of such promissory note to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) executed copies of an unbroken chain of assignment and assumption agreements, transfer documents or instruments relating to such Loan evidencing the assignment of such Loan from each prior third party owner thereof to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an executed assignment and assumption agreement, transfer document or instrument relating to such Loan evidencing the assignment of such Loan to the Borrower that, to the extent required by the Underlying Instruments, is counter-signed by the applicable underlying administrative agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a copy of the loan register held by the administrative agent for such Loan showing that the Borrower is the lender of record with respect to such Loan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a copy of the executed credit or loan agreement to which the Borrower was an original signatory (which includes the Borrower's commitment).

"<u>Required Reports</u>": Collectively, the Collateral Management Report required pursuant to <u>Section</u> <u>6.8(b)</u>, the Collateral Manager's Certificate required pursuant to <u>Section</u> <u>6.8(c)</u>, the financial statements of the Equityholder required pursuant to <u>Section</u> <u>6.8(d)</u>, the financial statements and valuation reports of each Obligor required pursuant to <u>Section</u> <u>6.8(e)</u>, the annual statements as to compliance required pursuant to <u>Section</u> <u>6.9</u>, and the annual independent public accountant's report required pursuant to <u>Section</u> <u>6.10</u>.

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"<u>Responsible Officer</u>": With respect to any Person, any duly authorized officer of such Person with direct responsibility for the administration of this Agreement and also, with respect to a particular matter, any other duly authorized officer of such Person to whom such matter is referred because of such officer's knowledge of and familiarity with the particular subject and in the case of the Equityholder, a Responsible Officer or its general partner.

"<u>Restricted Junior Payment</u>": (i) Any dividend or other distribution, direct or indirect, on account of any class of membership interests of the Borrower now or hereafter outstanding, except a dividend paid solely in interests of that class of membership interests or in any junior class of membership interests of the Borrower; (ii) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of any class of membership interests of the Borrower now or hereafter outstanding, (iii) any payment made to redeem, purchase, repurchase or retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire membership interests of the Borrower now or hereafter outstanding and (iv) any payment of management fees by the Borrower (except for the Collateral Management Fee). For the avoidance of doubt, (x) payments and reimbursements due to the Collateral Manager in accordance with this Agreement or any other Transaction Document do not constitute Restricted Junior Payments, and (y) distributions by the Borrower to holders of its membership interests of Loans or of cash or other proceeds relating thereto which have been repurchased or substituted by the Borrower in accordance with this Agreement shall not constitute Restricted Junior Payments.

"<u>Retained Interest</u>": (a) With respect to any Agented Note that is transferred to the Borrower, (i) all of the obligations, if any, of the agent(s) under the documentation evidencing such Agented Note, and (ii) the applicable portion of the interests, rights and obligations under the documentation evidencing such Loan that relate to such portion(s) of the indebtedness that is owned by another lender or is being retained in a separate account managed by the Collateral Manager and (b) any Equity Securities, that may be acquired by the Borrower in connection with any Loans.

"<u>Retransfer Date</u>": Defined in <u>Section</u> <u>2.17(b)</u>.

"<u>Retransfer Price</u>": Defined in <u>Section</u> <u>2.17(b)(i)</u>.

"<u>Returned Capital</u>": For any Investor, any distribution by the Equityholder to such Investor that increases such Investor's "Remaining Commitment" (as defined in the Equityholder Operating Agreement) and is subject to recall by the Equityholder pursuant to a Capital Call Notice, in each case which amount has been set forth as "Returned Capital" on a certificate of the Collateral Manager delivered to the Administrative Agent; *provided* that, the failure of the Collateral Manager to deliver such certificate to the Administrative Agent shall result in the exclusion of such amount from "Returned Capital" until such certificate has been delivered.

"<u>Revenue Recognition Implementation</u>": The implementation by an Obligor of IFRS 15/ASC 606.

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"<u>Review Criteria</u>": Defined in <u>Section</u> <u>8.2(b)(i)</u>.

"<u>Revolving Loan</u>": A Loan that is a line of credit or contains an unfunded, partially or fully funded commitment arising from an extension of credit to an Obligor, pursuant to the terms of which amounts borrowed may be repaid and subsequently reborrowed.

"<u>RIC</u>": An entity electing to be treated as a "regulated investment company" pursuant to Section 851 of the Code and the Treasury Regulations promulgated thereunder.

"<u>S&P</u>": S&P Global Ratings (or its successors in interest).

"<u>Sanction</u>" or "<u>Sanctions</u>": Individually and collectively, respectively, any and all economic or financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes and anti-terrorism laws imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by the U.S. Department of the Treasury's Office of Foreign Assets Control ("<u>OFAC</u>"), the U.S. Department of State, the U.S. Department of Commerce, or through any existing or future executive order; (b) the United Nations Security Council; (c) the European Union; (d) the United Kingdom; or (e) any other Governmental Authorities with jurisdiction over the Borrower, the Collateral Manager, the Equityholder or any of their respective Subsidiaries.

"<u>Sanctioned Person</u>": Any Person that is a target of Sanctions, including without limitation, a Person that is: (a) listed on OFAC's Specially Designated Nationals (SDN) and Blocked Persons List; (b) listed on OFAC's Consolidated Non-SDN List; (c) a legal entity that is deemed by OFAC to be a Sanctions target based on the direct or indirect ownership or control of such legal entity by Sanctioned Person(s); or (d) a Person that is a Sanctions target pursuant to any territorial or country-based Sanctions program.

"<u>Scheduled Payment</u>": Each scheduled payment of principal and/or interest required to be made by an Obligor on the related Loan, as adjusted pursuant to the terms of the related Underlying Instruments, if applicable.

"<u>Secured Party</u>": (i) Each Lender, (ii) the Administrative Agent, (iii) each Lender Agent, (iv) the Collateral Agent and (v) the Collateral Custodian.

"<u>Securities Account</u>": The meaning specified in Section 8-501 of the UCC.

"<u>Securities Account Control Agreement</u>": The Securities Account Control Agreement, dated as of the Closing Date, among the Borrower, as the debtor, the Collateral Manager, the Administrative Agent, the Collateral Custodian, the Collateral Agent and as the Securities Intermediary, as the same may be amended, modified, waived, supplemented or restated from time to time.

"<u>Securities Act</u>": The U.S. Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

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"<u>Securities Intermediary</u>": (i) A Clearing Corporation; or (ii) a Person, including a bank or broker, that in the ordinary course of its business maintains Securities Accounts for others and is acting in that capacity.

"<u>Security</u>": The meaning specified in Section 9-102(a)(15) of the UCC.

"<u>Security Certificate</u>": The meaning specified in Section 8-102(a)(16) of the UCC.

"<u>Security Entitlement</u>": The meaning specified in Section 8-102(a)(17) of the UCC.

"<u>Senior Net Leverage Ratio</u>": With respect to any Loan for any Relevant Test Period, the meaning of "Senior Net Leverage Ratio" or any comparable definition relating to first lien senior secured (or such applicable lien or applicable level within the capital structure) indebtedness in the Underlying Instruments for each such Loan, and in any case that "Senior Net Leverage Ratio" or such comparable definition is not defined in such Underlying Instruments, the ratio of (a) first lien senior secured (or such applicable lien or applicable level within the capital structure) Indebtedness *minus* Unrestricted Cash to (b) EBITDA as calculated by the Borrower and the Collateral Manager in good faith using information from and calculations consistent with the relevant compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Underlying Instruments.

"<u>Signature Law</u>": Defined in <u>Section</u> <u>13.14</u>.

"<u>SOFR</u>": A rate equal to the secured overnight financing rate as administered by the SOFR Administrator.

"<u>SOFR Administrator</u>": The Federal Reserve Bank of New York (or any successor administrator).

"<u>SOFR Administrator's Website</u>": The website of the SOFR Administrator, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"<u>Solvent</u>": As to any Person at any time, having a state of affairs such that all of the following conditions are met: (a) the fair value of the property of such Person is greater than the amount of such Person's liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated for purposes of Section 101(32) of the Bankruptcy Code; (b) the present fair saleable value of the property of such Person in an orderly liquidation of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts and other liabilities as they become absolute and matured; (c) such Person is able to realize upon its property and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business; (d) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person's ability to pay as such debts and liabilities mature; and (e) such Person is not engaged in a business or a transaction, and does not propose to engage in a business or a transaction, for which such Person's property assets would constitute unreasonably small capital.

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"<u>Subsidiary</u>": As to any Person, a corporation, partnership or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Person. For the avoidance of doubt, "Subsidiary" shall not include any Person that is a Portfolio Subsidiary.

"<u>Substitute Loan</u>": Defined in <u>Section</u> <u>2.17(a)</u>.

"<u>Substitution Date</u>": Defined in <u>Section</u> <u>2.17(a)</u>.

"<u>Successor Collateral Manager</u>": Defined in <u>Section</u> <u>6.13(a)</u>.

"<u>Swingline Advance</u>": Any swingline advance made by the Swingline Lender to the Borrower pursuant to <u>Section</u> <u>2.1</u>, and all such swingline advances collectively as the context requires. For the avoidance of doubt, unless otherwise specified a Swingline Advance shall constitute an Advance hereunder.

"<u>Swingline Commitment</u>": The commitment of the Swingline Lender to fund Swingline Advances, subject to the terms and conditions herein, in an amount not greater than $30,000,000 (without regard to any future reimbursement of Swingline Advances by the Lenders), as such amount may be reduced, increased or assigned from time to time pursuant to the provisions of this Agreement. The Swingline Commitment is a sub-limit of the Commitment of the Swingline Lender, in its capacity as an Institutional Lender hereunder, and is not in addition thereto. The Swingline Commitment will become effective only upon the addition of one or more lenders after the Closing Date.

"<u>Swingline Lender</u>": Wells Fargo Bank, National Association in its capacity as swingline lender hereunder or any successor thereto.

"<u>Swingline Refund Date</u>": The meaning specified in <u>Section</u> <u>2.21(a)</u>.

"<u>Taxes</u>": Any present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), charges, assessments or fees (including interest, penalties, and additions thereto) that are imposed by any Governmental Authority.

"<u>Term Loan</u>": A Loan that is a term loan that has been fully funded and does not contain any unfunded commitment arising from an extension of credit to an Obligor.

"<u>Termination Date</u>": The earliest of (a) the date of the termination in whole of the Facility Amount pursuant to <u>Section</u> <u>2.3(a)</u>, (b) the Facility Maturity Date or (c) the date of the declaration of the Termination Date or the date of the automatic occurrence of the Termination Date pursuant to <u>Section</u> <u>10.2(a)</u>.

"<u>Termination Event</u>": Defined in <u>Section</u> <u>10.1</u>.

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"<u>Total Net Leverage Ratio</u>": With respect to any Loan for any Relevant Test Period, the meaning of "Total Net Leverage Ratio" or any comparable definition in the Underlying Instruments for each such Loan, and in any case that "Total Net Leverage Ratio" or such comparable definition is not defined in such Underlying Instruments, the ratio of (a) Indebtedness *minus* Unrestricted Cash to (b) EBITDA as calculated by the Borrower and the Collateral Manager in good faith using information from and calculations consistent with the relevant compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the Underlying Instruments.

"<u>Transaction</u>": Defined in <u>Section</u> <u>3.2</u>.

"<u>Transaction Documents</u>": This Agreement, the Contribution Agreement, the Securities Account Control Agreement, each Lender Fee Letter, any Joinder Supplement, any Transferee Letter, the CA & CC Fee Letter, any agreement creating rights in the Collateral pursuant to the terms of this Agreement and such other agreements and documents, and any amendments or supplements thereto or modifications thereof, executed or delivered pursuant to the terms of this Agreement or any of the other Transaction Documents and any additional documents delivered in connection with any such amendment, supplement or modification that, in each case, the parties thereto agree shall constitute a "Transaction Document" hereunder.

"<u>Transferee Letter</u>": Defined in <u>Section</u> <u>13.16</u>.

"<u>UCC</u>": The Uniform Commercial Code as from time to time in effect in the applicable jurisdiction or jurisdictions.

"<u>Unadjusted Benchmark Replacement</u>": The Benchmark Replacement excluding the Benchmark Replacement Adjustment.

"<u>Uncertificated Security</u>": The meaning specified in Section 8-102(a)(l8) of the UCC.

"<u>Underlying Instruments</u>": The loan agreement, credit agreement, indenture or other agreement pursuant to which a Loan or Permitted Investment has been issued or created and each other agreement that governs the terms of or secures the obligations represented by such Loan or Permitted Investment or of which the holders of such Loan or Permitted Investment are the beneficiaries.

"<u>Unencumbered Liquidity</u>": The sum of (a) all cash or cash equivalents held by the Equityholder (other than any cash or cash equivalents held by the Borrower) *plus* (b) the Unfunded Capital Commitments (net of amounts outstanding under any related subscription credit facility) *plus* (c) all cash or cash equivalents held in the Principal Collections Account (but excluded from the definition of Aggregate Maximum Availability) calculated in Dollars.

"<u>Unfunded Capital Commitment</u>": With respect to any Investor at any time, the Capital Commitment of such Investor, *plus* Returned Capital attributed to such Investor, *minus* the aggregate Capital Contributions by such Investor, *minus* the sum of any amounts as to the payment of which such Investor is excused, as a result of regulatory concerns or otherwise, or is otherwise discharged (by act of any Person, by operation of law, or otherwise) *minus* that portion of the proceeds of any Pending Capital Calls that are not allocated by the Collateral Manager to be contributed to the Borrower or to be used to pay an obligation of the Borrower arising from or related to the transactions contemplated by this Agreement.

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"<u>Unfunded Exposure Account</u>": Defined in <u>Section</u> <u>6.4(h)</u>.

"<u>Unfunded Exposure Amount</u>": On any date of determination, an amount calculated in Dollars equal to the excess, if any, of (i) the aggregate of all Exposure Amounts minus (ii) the amount on deposit in the Unfunded Exposure Account calculated in Dollars (and converted to Dollars, if necessary, by the Collateral Manager using the Applicable Exchange Rate).

"<u>Unfunded Exposure Equity Amount</u>": On any date of determination, an amount calculated in Dollars (and converted to Dollars, if necessary, by the Collateral Manager using the Applicable Exchange Rate) equal to the sum for all Loans of (a) the Exposure Amount *minus* (b) the product of (i) Assigned Value, (ii) the Exposure Amount and (iii) the Advance Rate.

"<u>Unfunded Exposure Equity Shortfall</u>": On any date of determination, an amount equal to the excess, if any, of (i) the aggregate of all Unfunded Exposure Equity Amounts minus (ii) the amount on deposit in the Unfunded Exposure Account calculated in Dollars (and converted to Dollars, if necessary, by the Collateral Manager using the Applicable Exchange Rate).

"<u>United States</u>": The United States of America.

"<u>Unmatured Termination Event</u>": Any event (other than events described in <u>Section</u> <u>10.1(c)</u> and <u>Section</u> <u>10.1(d)</u> and in the case of <u>Section</u> <u>10.1(d)</u>, due to the occurrence of an event described in <u>Section</u> <u>6.12(d)</u>) that, with the giving of notice or the lapse of time, or both, would become a Termination Event.

"<u>Unrestricted Cash</u>": The meaning of "Unrestricted Cash" or any comparable definition in the Underlying Instruments for each Loan, and in any case that "Unrestricted Cash" or such comparable definition is not defined in such Underlying Instruments, all cash available for use for general corporate purposes and not held in any reserve account or legally or contractually restricted for any particular purposes or subject to any lien (other than blanket liens permitted under or granted in accordance with such Underlying Instruments).

"<u>Unused Portion</u>": Defined in <u>Section</u> <u>2.13(a)</u>.

"<u>U.S. Government Securities Business Day</u>": Any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the 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. Special Resolution Regime</u>": Each of (i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

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"<u>Value Adjustment Event</u>": With respect to any Loan, the occurrence of any one or more of the following events after the related Funding Date (*provided* that, the criteria with respect to a DIP Loan shall be determined by the Administrative Agent in its sole discretion, as of the date such DIP Loan is approved by 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;(i) an Obligor payment default under any Loan (after giving effect to any applicable grace or cure periods, but in any case not to exceed five (5) Business Days, in accordance with the Underlying Instruments);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an Insolvency Event with respect to the related Obligor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Collateral Manager has determined in accordance with the Collateral Management Standard that such Loan is on non-accrual status or not collectible, or any or all of the principal amount due under such Loan is reduced or forgiven;

&nbsp;&nbsp;&nbsp;&nbsp;&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) an Obligor default under such Loan not described in clause (i) above, together with the election by any agent or lender (including, without limitation, the Borrower) to accelerate such Loan or to enforce any of their respective rights or remedies under the applicable UCC or by other institution of legal or equitable proceedings, in each case in accordance with the Underlying Instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&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 failure to deliver any financial reporting package monthly (to the extent required by the Underlying Instruments), quarterly or annually with respect to such Loan pursuant to <u>Section</u> <u>6.8(e)(i)</u> no later than forty-five (45) days after the end of each month, sixty (60) days after the end of each quarter and one hundred and thirty (130) days after the end of each fiscal year (or such greater number of days as allowed by the Underlying Instruments (including any grace periods thereunder), but which shall in no case exceed one hundred and fifty (150) days after the end of each fiscal year), unless otherwise agreed to by the Administrative Agent in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Interest Coverage Ratio for any Relevant Test Period of the related Obligor with respect to such Loan is (A) less than 85% of the Interest Coverage Ratio with respect to such Loan as calculated on the applicable Funding Date (*provided* that, if any other positions in such Loan by the Borrower existed on its Funding Date, then the Interest Coverage Ratio utilized for the position with the earliest of such other Funding Dates shall apply, unless the Administrative Agent agrees otherwise) and (B) less than 1.50 to 1.00; *provided* that, in connection with any Revenue Recognition Implementation or any Operating Lease Implementation, the Administrative Agent (with the consent of the Collateral Manager (such consent not to be unreasonably withheld, delayed or conditioned)) may retroactively adjust the Interest Coverage Ratio for any Loan as determined on the applicable date on which such Loan was acquired by the Borrower;

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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;(vii) the Senior Net Leverage Ratio for any Relevant Test Period of the related Obligor with respect to such Loan is (A) more than 0.75x higher than such Senior Net Leverage Ratio as calculated on the applicable Funding Date (*provided* that, if any other positions in such Loan by the Borrower existed on its Funding Date, then the Senior Net Leverage Ratio utilized for the position with the earliest of such other Funding Dates shall apply, unless the Administrative Agent agrees otherwise) and (B) greater than 3.50 to 1.00; *provided* that, in connection with any Revenue Recognition Implementation or any Operating Lease Implementation, the Administrative Agent (with the consent of the Collateral Manager (such consent not to be unreasonably withheld, delayed or conditioned)) may retroactively adjust the Senior Net Leverage Ratio for any Loan as determined on the applicable date on which such Loan was acquired by the Borrower; 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;(viii) the occurrence of a Material Modification with respect to such Loan.

"<u>Warranty Event</u>": As to any Loan, the discovery that as of the related Funding Date there existed a breach of any representation or warranty with respect to such Loan made under this Agreement (other than any representation or warranty that the Loan satisfies the criteria of the definition of Eligible Loan) and the failure of Borrower to cure such breach, or cause the same to be cured, within thirty (30) days after the earlier to occur of the Borrower's receipt of notice thereof from the Administrative Agent or the Borrower becoming aware thereof.

"<u>Warranty Loan</u>": Any Loan that fails to satisfy any criteria of the definition of Eligible Loan as of the applicable Funding Date of such Loan or any Loan with respect to which a Warranty Event has occurred; *provided* that, any Loan approved by the Administrative Agent in accordance with clause (a) of the definition of Eligible Loan shall not be a Warranty Loan due to the failure of such Loan to satisfy such clause (a) on any date thereafter.

"<u>Weighted Average Advance Rate</u>": For any Advances Outstanding on any day, the weighted average of the Advance Rates applicable to the Eligible Loans backing such Advances on such day, weighted according to the proportion of the Borrowing Base that each type of Loan forming a part of the Collateral represents.

"<u>Weighted Average Life</u>": As of any Measurement Date, the number determined as follows: (i) for each Loan included in the Borrowing Base as of such date, by multiplying the amount of each Scheduled Payment of principal to be paid after such Measurement Date by the number of years (rounded to the nearest hundredth) from such Measurement Date until such Scheduled Payment of principal is due; (ii) summing all of the products calculated pursuant to clause (i); and (iii) dividing the sum calculated pursuant to clause (ii) by the sum of all Scheduled Payments of principal due on all the Loans included in the Borrowing Base as of such date.

"<u>Wells Fargo</u>": The meaning specified in the Preamble hereto.

"<u>Wells Fargo Fee Letter</u>": The Lender Fee letter, dated as of the date hereof, by and among the Borrower, the Collateral Manager and Wells Fargo, as such letter may be amended, modified, supplemented, restated or replaced from time to time.

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**Section 1.2. <u>Other Terms</u>**.

All accounting terms used but not specifically defined herein shall be construed in accordance with GAAP. All terms used in Article 9 of the UCC in the state of New York, and used but not specifically defined herein, are used herein as defined in such Article 9.

**Section 1.3. <u>Computation of Time Periods</u>**.

Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word "from" means "from and including" and the words "to" and "until" each mean "to but excluding".

**Section 1.4. <u>Interpretation</u>**.

In each Transaction Document, unless a contrary intention appears:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the singular number includes the plural number and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) reference to any Person includes such Person's successors and assigns but, if applicable, only if such successors and assigns are permitted by the Transaction Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reference to any gender includes each other gender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) reference to day or days without further qualification means calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) reference to any time means Charlotte, North Carolina time, unless otherwise specified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) reference to the words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the word "any" is not limiting and means "any and all" unless the context clearly requires or the language provides otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) reference to any agreement (including any Transaction Document), document or instrument means such agreement, document or instrument as amended, modified, waived, supplemented, restated or replaced and in effect from time to time in accordance with the terms thereof and, if applicable, the terms of the other Transaction Documents, and reference to any promissory note includes any promissory note that is an extension or renewal thereof or a substitute or replacement therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reference to any Applicable Law means such Applicable Law as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder and reference to any Section or other provision of any Applicable Law means that provision of such Applicable Law from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such Section or other provision;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) reference to the par or principal amount of any Loan shall, unless otherwise expressly set forth herein, be calculated exclusive of accrued and Accreted Interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) if any date for compliance with respect to (i) the delivery of a Required Report by the Borrower and/or Collateral Manager or (ii) the terms or conditions of any Transaction Document falls due on a day which is not a Business Day, then such due date shall be deemed to be the immediately following Business Day; provided however, that for the avoidance of doubt, if the date for compliance is to be a certain number of Business Days prior to an applicable date of determination, then such due date will be the Business Day (which may be the Business Day immediately prior to such due date) that is in accordance with the timing requirement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) reference to the date of any acquisition or disposition of any Collateral, or the date on which any asset is added to or removed from the Collateral shall mean the related "settlement date" and not the related "trade date";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) for purposes of this Agreement, a Termination Event shall be deemed to be continuing until it is waived in accordance with <u>Section</u> <u>13.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) any use of "material" or "materially" or words of similar meaning in this Agreement shall mean material, as determined by the Administrative Agent in its sole discretion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) references herein to the knowledge or actual knowledge of a Person shall mean, except as explicitly provided herein, the actual knowledge following reasonable inquiry under the circumstances of a Responsible Officer of such Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) unless otherwise expressly stated in this Agreement, if at any time any change in generally accepted accounting principles (including the adoption of IFRS) would affect the computation of any covenant (including the computation of any financial covenant) set forth in this Agreement or any other Transaction Document, the Borrower and the Administrative Agent shall negotiate in good faith to amend such covenant to preserve the original intent in light of such change; provided, that, until so amended, (i) such covenant shall continue to be computed in accordance with the application of generally accepted accounting principles prior to such change and (ii) Borrower shall provide to the Administrative Agent a written reconciliation in form and substance reasonably satisfactory to the Administrative Agent, between calculations of such covenant made before and after giving effect to such change in generally accepted accounting principles; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) the Administrative Agent and the Collateral Agent do not warrant or accept any responsibility for, and shall not have any liability with respect to, (i) the continuation of, administration of, submission of, calculation of or any other matter related to Daily Simple SOFR or any other Benchmark, or any component definition thereof or rates referred to in the definition thereof, or with respect to 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), as it may or may not be adjusted pursuant to <u>Section</u> <u>13.1</u>, will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, Daily Simple SOFR or any

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other Benchmark prior to its discontinuance or unavailability, or (ii) the effect, implementation or composition of any Conforming Changes. The Administrative Agent and its Affiliates or other related entities may engage in transactions that affect the calculation of a Benchmark, any alternative, successor or replacement rate (including any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to the Borrower. The Administrative Agent may select information sources or services in its reasonable discretion to ascertain any Benchmark, 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 the Borrower, any Lender or any other person or entity for damages of any kind, including direct or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information source or service.

**ARTICLE II.** 

**ADVANCES** 

**Section 2.1. <u>Advances and</u> <u>Swingline</u> <u>Advances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the Reinvestment Period, the Borrower may, at its option, request the Lenders to make Advances hereunder, secured by the Collateral, by delivering a Funding Request to the Administrative Agent (which shall provide notification to the Lenders with respect thereto), in an aggregate amount up to the Availability as of the proposed Funding Date of the Advance; *provided* that, no Lender shall be obligated to make any Advance on or after the date that is two (2) Business Days prior to the earlier to occur of the Reinvestment Period End Date or the Termination Date. Following the receipt of a Funding Request, subject to the terms and conditions hereinafter set forth, during the Reinvestment Period, the Lenders shall fund such Advance. Notwithstanding anything to the contrary herein, no Lender shall be obligated to provide the Borrower with aggregate funds in connection with an Advance that would exceed the least of (i) such Lender's unused Commitment then in effect, (ii) the aggregate unused Commitments then in effect and (iii) the Availability on the proposed Funding Date of such Advance.

During the Reinvestment Period, the Borrower may, at its option, request the Swingline Lender to make Swingline Advances to the Borrower by delivering a Funding Request with respect to such requested Swingline Advance to the Administrative Agent, which shall forward such Funding Request to the Swingline Lender and provide notification to the Lenders with respect thereto. Following the receipt of such a Funding Request and subject to the terms and conditions hereinafter set forth, the Swingline Lender shall make the requested Swingline Advances to the Borrower. Notwithstanding anything to the contrary herein, (a) the Swingline Lender shall not be obligated to provide the Borrower with aggregate funds in connection with a Swingline Advance that would exceed the least of (i) the Swingline Lender's unused Commitment then in effect, (ii) the aggregate unused Commitments then in effect, (iii) the aggregate unused Swingline Commitment then in effect and (iv) the Availability on the proposed Funding Date of such Swingline Advance and (b) Swingline Advances will only be funded in Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>[Reserved]</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;(c) (i) The Borrower may, with the written consent of the Administrative Agent, add additional Persons as Lenders; *provided* that the Commitment of any Lender may only be increased in connection with a corresponding increase in the Facility Amount with the prior written consent of such Lender and the Administrative Agent. Each additional Lender and Lender Agent shall become a party hereto by executing and delivering to the Administrative Agent and the Borrower a Joinder Supplement and a representation letter in the form of <u>Exhibit</u> <u>K</u>. The Borrower confirms that each Lender Agent, in its sole and absolute discretion, without regard to the value or performance of the Loans or any other factor, may elect not to increase its Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Advances to be made for the purpose of refunding Swingline Advances shall be made by the Lenders as provided in <u>Section</u> <u>2.21</u>.

**Section 2.2. <u>Procedures for Advances and</u> <u>Swingline</u> <u>Advances by the Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the limitations set forth in <u>Section</u> <u>2.1(b)</u>, the Borrower may request an Advance or a Swingline Advance by delivering to the Administrative Agent the information and documents set forth in this <u>Section</u> <u>2.2</u> at the applicable times provided herein. Upon receipt of such information and documents, the Administrative Agent will provide notification to the Lenders and/or the Swingline Lender, as applicable, with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to (i) all Advances denominated in Dollars (other than Swingline Advances) (A) prior to the joinder of the first additional Lender to this Agreement after the Closing Date (if any), no later than 2:00 p.m. on the proposed Funding Date and (B) after the joinder of the first additional Lender to this Agreement after the Closing Date (if any), no later than 2:00 p.m. on the Business Day prior to the proposed Funding Date, (ii) all Advances denominated in an Eligible Currency other than Dollars (other than Swingline Advances) (A) prior to the joinder of the first additional Lender to this Agreement after the Closing Date (if any), no later than 9:00 a.m. one (1) Business Day prior to the proposed date of such Advance and (B) after the joinder of the first additional Lender to this Agreement after the Closing Date (if any), no later than at least three (3) Business Days prior to the proposed date of such Advance (*provided* any Advance in Canadian Dollars shall only be made for the purpose of funding Loans denominated in Canadian Dollars) and (iii) all Swingline Advances, no later than 2:00 p.m. on the proposed Funding Date, the Borrower (or the Collateral Manager on its behalf) shall deliver:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the Administrative Agent a description of the Obligor and the Loan(s) to be funded by the proposed Advance or Swingline 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;(ii) to the Administrative Agent a wire disbursement and authorization form, to the extent not previously 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;(iii) a faxed or e-mailed copy of the duly executed promissory notes of the Loans or, if any such promissory note is not issued in the name of the Borrower or is a Noteless Loan, an executed copy of each assignment and assumption agreement, transfer document or instrument relating to such Loan evidencing the assignment of such Loan

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from any prior third party owner thereof directly to the Borrower; *provided* that, notwithstanding the foregoing, unless the Administrative Agent shall (in its sole discretion) otherwise agree, the Borrower shall cause the Loan Checklist and the remaining Required Loan Documents to be in the possession of the Collateral Custodian within five (5) Business Days following any related Funding 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;(iv) to the Administrative Agent (with a copy to the Collateral Agent and the Collateral Custodian) a duly completed Funding Request which shall (A) specify the desired amount of such Advance or Swingline Advance, which amount must be at least equal to $500,000 (or the equivalent in Dollars) and the Borrower may request any amounts in excess thereof, to be allocated (with respect to an Advance) to each Conduit Lender and each Institutional Lender in accordance with its Pro Rata Share, (B) specify the proposed Funding Date of such Advance (other than a Swingline Advance), (C) specify the Loan(s) to be financed on such Funding Date (including the appropriate file number, Obligor, original loan balance, OLB, Assigned Value and Purchase Price for each Loan and identifying each Loan by type and proposed Advance Rate applicable to each such Loan), (D) include a duly completed Borrowing Base Certificate updated to the date such Advance or Swingline Advance is requested and giving pro forma effect to the Advance or Swingline Advance requested and the use of the proceeds thereof and (E) include a representation that all conditions precedent (other than the qualification that any condition is satisfactory to the Administrative Agent or Lender Agent) for an Advance or Swingline Advance described in <u>Section</u> <u>3.1</u> (with respect to the initial Advance hereunder) and <u>Section</u> <u>3.2</u> have been satisfied or waived. Each Funding Request shall be irrevocable. If any Funding Request is received by the Administrative Agent (a) with respect to all Advances denominated in Dollars, (1) prior to the joinder of the first additional Lender to this Agreement after the Closing Date (if any), after 2:00 p.m. on the proposed Funding Date (other than a Swingline Advance), (2) after the joinder of the first additional Lender to this Agreement after the Closing Date (if any), after 2:00 p.m. on the Business Day prior to the proposed Funding Date (in the case of an Advance), (b) with respect to all Advances denominated in an Eligible Currency other than Dollars, (1) prior to the joinder of the first additional Lender to this Agreement after the Closing Date (if any), after 9:00 a.m. one (1) Business Day prior to the proposed Funding Date (in the case of an Advance), (2) after the joinder of the first additional Lender to this Agreement after the Closing Date (if any), after 2:00 p.m. three (3) Business Days prior to the proposed Funding Date (other than a Swingline Advance) or (c) in the case of any Swingline Advance, after 2:00 p.m. on the proposed Funding Date, or on a day that is not a Business Day, such Funding Request shall be deemed to be received by the Administrative Agent and each Lender Agent at 9:00 a.m. on the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the proposed Funding Date, subject to the limitations set forth in <u>Section</u> <u>2.1(b)</u> and upon satisfaction of the applicable conditions set forth in <u>Article</u> <u>III</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;(i) in the case of an Advance (other than a Swingline Advance), each Lender shall (A) prior to the joinder of the first additional Lender to this Agreement after the Closing Date (if any), make available to the Borrower in same day funds and (B) after the joinder of the first additional Lender to this Agreement after the Closing Date (if any), make available to the Borrower within one Business Day, at such bank or other location

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reasonably designated by Borrower in the Funding Request given pursuant to this <u>Section</u> <u>2.2</u>, an amount equal to such Lender's Pro Rata Share of the least of (i) the amount requested by the Borrower for such Advance, (ii) the aggregate unused Commitments then in effect and (iii) an amount equal to the Availability on such Funding 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the case of a Swingline Advance, the Swingline Lender shall make available to the Borrower in same day funds, at such bank or other location reasonably designated by Borrower in the Funding Request given pursuant to this <u>Section</u> <u>2.2</u>, an amount equal to the least of (i) the amount requested by the Borrower for such Swingline Advance, (ii) the aggregate unused Commitments then in effect and (iii) an amount equal to the Availability on such Funding Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On each Funding Date, the obligation of each Lender to remit its Pro Rata Share of any such Advance (other than a Swingline Advance) shall be several from that of each other Lender and the failure of any Conduit Lender or Institutional Lender to so make such amount available to the Borrower shall not relieve any other Lender of its obligation hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to <u>Section</u> <u>2.3</u> and the other terms, conditions, provisions and limitations set forth herein (including, without limitation, the payment of the Prepayment Penalty, as applicable), the Borrower may borrow, repay or prepay and reborrow Advances without any penalty, fee or premium on and after the Closing Date and prior to the end of the Reinvestment Period.

&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 herein (including, without limitation, the occurrence of a Termination Event or the existence of an Unmatured Termination Event), if, upon the earlier to occur of the Reinvestment Period End Date or the Termination Date, the amount on deposit in the Unfunded Exposure Account is less than the aggregate of all Exposure Amounts, the Borrower shall promptly fund the amount of such shortfall into the Unfunded Exposure Account.

**Section 2.3. <u>Reduction of the Facility Amount; Mandatory and Optional</u> <u>Repayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall be entitled at its option and upon ten (10) Business Days' prior written notice in the form of <u>Exhibit</u> <u>A</u><u>-2</u> to the Administrative Agent (and the Administrative Agent shall forward such notice to each Lender Agent) to either (i) terminate the Facility Amount in whole upon payment in full of all Advances Outstanding, all accrued and unpaid Interest, any Breakage Costs, all accrued and unpaid costs and expenses of the Administrative Agent, Lender Agents and Lenders, the Prepayment Penalty (payable *pro rata* to each Lender Agent for the account of the applicable Lender) and all other Aggregate Unpaids (other than unmatured contingent indemnification obligations), or (ii) reduce in part the portion of the Facility Amount that exceeds the sum of the Advances Outstanding, all accrued and unpaid Interest (*pro rata* with respect to the portion of the Facility Amount so reduced), any Breakage Costs, all accrued and unpaid costs and expenses of the Administrative Agent, Lender Agents and Lenders and the Prepayment Penalty (payable *pro rata* to each Lender Agent for the account of the applicable Lender); *provided* that, in each case no Prepayment Penalty shall be due and payable (w) so long as, such termination or reduction occurs no sooner than the date which is two (2) years

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following the Closing Date, (x) to a Defaulting Lender, (y) if the Administrative Agent fails to approve at least 25% of the Loans submitted for approval that satisfy the applicable requirements of the definition of "Eligible Loan" or (z) if such termination or reduction is in connection with a Permitted Securitization and the Administrative Agent has provided its prior written consent (in its sole discretion) thereto. Any request for a reduction or termination pursuant to this <u>Section</u> <u>2.3(a)</u> shall be irrevocable. The Commitment of each Conduit Lender and each Institutional Lender shall be reduced by an amount equal to its Pro Rata Share (prior to giving effect to any reduction of Commitments hereunder) of the aggregate amount of any reduction under this <u>Section</u> <u>2.3(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall be entitled at its option, at any time, to reduce Advances Outstanding; *provided* that, (i) the Borrower shall give (a) one (1) Business Day's prior written notice of such reduction if the repayment is in Dollars or (b) two (2) Business Day's prior written notice of such reduction if the repayment is in Canadian Dollars, which, in each case shall be in the form of <u>Exhibit</u> <u>A</u><u>-2</u> to the Administrative Agent and each Lender Agent and (ii) any reduction of Advances Outstanding (other than with respect to repayments of Advances Outstanding made by the Borrower to reduce Advances Outstanding such that the Availability is greater than or equal to $0) shall be in a minimum amount of the Dollar equivalent of $500,000. In connection with any reduction of Advances Outstanding (x) in part, the Borrower shall deliver to the Administrative Agent funds sufficient to repay such Advances Outstanding, together with any Breakage Costs and all accrued and unpaid costs and expenses of the Administrative Agent, Lender Agents and Lenders related to such repayment and (y) in whole, the Borrower shall deliver to the Administrative Agent funds sufficient to repay such Advances Outstanding, together with all accrued and unpaid Interest, any Breakage Costs, and all accrued and unpaid costs and expenses of the Administrative Agent, Lender Agents and Lenders related to such repayment; *provided* that, no such reduction shall be given effect unless (1) sufficient funds have been remitted to pay all such amounts in full, as determined by the Administrative Agent, in its sole discretion, and (2) no event has occurred or would result from such prepayment which would constitute a Termination Event or an Unmatured Termination Event. The Administrative Agent shall apply amounts received from the Borrower pursuant to this <u>Section</u> <u>2.3(b)</u> to the *pro rata* reduction of the Advances Outstanding, to the payment of all accrued and unpaid Interest on the amount of the Advances Outstanding to be repaid and to the payment of any Breakage Costs. Any Advance so repaid may, subject to the terms and conditions hereof, be reborrowed during the Reinvestment Period. Any Repayment Notice relating to any repayment pursuant to this <u>Section</u> <u>2.3(b)</u> shall be irrevocable.

**Section 2.4. <u>Determination of Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Administrative Agent shall determine the Interest (including unpaid Interest related thereto, if any, due and payable on a prior Payment Date) to be paid by the Borrower on each Payment Date for the related Accrual Period and shall advise the Collateral Manager and the Borrower thereof on the third Business Day prior to such Payment Date. The Borrower shall pay such Interest due on such Payment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No provision of this Agreement shall require the payment or permit the collection of Interest in excess of the maximum permitted by Applicable Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Interest shall be considered paid by any distribution if at any time such distribution is rescinded or must otherwise be returned for any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Interest due on any Payment Date shall be calculated on the Determination Date immediately preceding such Payment Date using the Applicable Exchange Rate as of such Determination Date.

**Section 2.5. <u>[Reserved]</u>**.

**Section 2.6. <u>Principal Repayments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless sooner prepaid pursuant to the terms hereof and subject to <u>Section</u> <u>10.2</u>, the Advances Outstanding shall be repaid by the Borrower in full on the Termination Date or on such later date as is agreed to in writing by the Borrower, the Collateral Manager, the Administrative Agent and the Lender Agents. Advances Outstanding shall be repaid as and when necessary to cause the Availability to equal or exceed $0, and any amount so repaid may, subject to the terms and conditions hereof, be reborrowed hereunder during the Reinvestment Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All repayments of any Advance or any portion thereof shall be made together with payment of (i) all Interest accrued and unpaid on the amount repaid to (but excluding) the date of such repayment, (ii) all Breakage Costs and (iii) any Prepayment Penalty.

**Section 2.7. <u>Interest Settlement Procedures before the Default Period</u>**.

On each Payment Date before the Default Period, the Collateral Manager shall direct the Collateral Agent to pay pursuant to the Collateral Management Report (and the Collateral Agent shall make payment from the Interest Collections Account to the extent of Available Funds, in reliance on the information set forth in such Collateral Management Report) to the following Persons, the following amounts in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *pari passu* to (a) the Collateral Agent and the Collateral Custodian, in an amount equal to any accrued and unpaid Collateral Agent and Portfolio Administration Fee; *provided* that, indemnity amounts payable to the Collateral Agent and the Collateral Custodian pursuant to this clause (1)(a) (and <u>Section</u> <u>2.8(a)(1)</u> and <u>Section</u> <u>2.9(1)(a)</u>, if applicable) shall not, collectively, exceed $100,000 *per annum* and (b) any Person, in an amount equal to any accrued and unpaid Delaware Expenses owing thereto; *provided* that, expenses payable to such Person pursuant to this clause (1)(b) (and <u>Section</u> <u>2.8(a)(1)</u> and <u>Section</u> <u>2.9(1)(b)</u>, if applicable) shall not, collectively, exceed $35,000 *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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to or at the direction of the Collateral Manager, in an amount equal to any accrued and unpaid Collateral Management Fees to the end of the related Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *pro rata* in accordance with the amounts due under this clause, to each Lender Agent, in an amount equal to any accrued and unpaid Interest, Facility Margin, Commitment Fee and Breakage Costs;

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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;(4) *pro rata* in accordance with the amounts due under this clause, to each Lender Agent for the account of the applicable Lender, and the Administrative Agent, all accrued and unpaid fees, expenses (including attorneys' fees, costs and expenses) and indemnity amounts payable by the Borrower to the Administrative Agent, any Lender Agent or any Lender under the Transaction 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;(5) (i) prior to the end of the Reinvestment Period, if any Borrowing Base Deficiency exists as a result of a shortfall in the Unfunded Exposure Amount, to the Unfunded Exposure Account in an amount necessary to cause the amount on deposit in the Unfunded Exposure Account to equal the aggregate of all Unfunded Exposure Equity Amounts and (ii) after the Reinvestment Period but before the Default Period, to the Unfunded Exposure Account in an amount necessary to cause the amount on deposit in the Unfunded Exposure Account to equal the aggregate of all Exposure 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;(6) to each Lender Agent for the account of the applicable Lender, an amount necessary to satisfy any Borrowing Base Deficiency, *pro rata* in accordance with the amount of Advances Outstanding 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;(7) on and after the BDC Election Date, to the Equityholder, to make any applicable Permitted RIC Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to pay any accrued and unpaid Prepayment Penalty in connection with any termination in whole or reduction in part of the Facility Amount in accordance with <u>Section</u> <u>2.3(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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) to pay any other amounts due (other than with respect to the repayment of Advances) under this Agreement and the other Transaction Documents (including any indemnity amounts due from the Borrower hereunder and thereunder not previously paid pursuant to clauses (1) and (4) of <u>Section</u> <u>2.7</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;(10) if an Unmatured Termination Event has occurred and is continuing, to remain in the Interest Collection Account or otherwise, any remaining amounts shall be distributed to the Borrower (or its designee).

**Section 2.8. <u>Principal Settlement Procedures before the Default Period</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On each Payment Date before the Default Period, the Collateral Manager shall direct the Collateral Agent to pay pursuant to the Collateral Management Report (and the Collateral Agent shall make payment from the Principal Collections Account to the extent of Available Funds, in reliance on the information set forth in such Collateral Management Report) to the following Persons, the following amounts in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to pay amounts due under <u>Section</u> <u>2.7(1)</u> through <u>(4)</u>, to the extent not paid thereunder;

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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;(2) (i) prior to the end of the Reinvestment Period, at the discretion of the Collateral Manager, to the Unfunded Exposure Account in an amount necessary to cause the amount on deposit in the Unfunded Exposure Account to equal the aggregate of all Unfunded Exposure Equity Amounts and (ii) after the Reinvestment Period but before the Default Period, to the Unfunded Exposure Account in an amount necessary to cause the amount on deposit in the Unfunded Exposure Account to equal the aggregate of all Exposure 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;(3) prior to the end of the Reinvestment Period, to each Lender Agent for the account of the applicable Lender, an amount necessary to satisfy any Borrowing Base Deficiency, *pro rata* in accordance with the amount of Advances Outstanding 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;(4) after the Reinvestment Period, to pay the Advances Outstanding and any accrued and unpaid Prepayment Penalty until paid in full, *pro rata* in accordance with the amount of Advances Outstanding 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;(5) to the extent not paid pursuant to <u>Section</u> <u>2.7(7)</u>, to the Equityholder to make any applicable Permitted RIC Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to pay any other amounts due (other than with respect to the repayment of Advances) under this Agreement and the other Transaction Documents (including any indemnity amounts due from the Borrower hereunder and thereunder not previously paid pursuant to <u>Section</u> <u>2.8(a)(1)</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;(7) if an Unmatured Termination Event has occurred and is continuing, to remain in the Principal Collection Account or otherwise, any remaining amounts shall be distributed to the Borrower (or its designee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the terms and conditions hereinafter set forth, from time to time during the Reinvestment Period, the Collateral Manager may, to the extent of any Principal Collections on deposit in the Principal Collections 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;(i) withdraw such funds for the purpose of reinvesting in additional Eligible Loans; *provided* that, the following conditions are 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) all conditions precedent set forth in <u>Section</u> <u>3.2(b)</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Borrower or the Collateral Manager provides same day written notice to the Administrative Agent and the Collateral Agent by email (to be received no later than 1:30 p.m. on such day) of the request to withdraw Principal Collections and the amount of such request;

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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;(3) the notice required in clause (2) above shall be accompanied by a Reinvestment Notice in the form of <u>Exhibit</u> <u>A</u><u>-3</u>, a Loan Tape and a Borrowing Base Certificate, each executed by the Borrower and the Collateral Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Collateral Agent provides to the Administrative Agent by email (to be received no later than 1:30 p.m. on that same day) a statement reflecting the total amount on deposit on such day in the Principal Collections Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) upon the satisfaction of the conditions set forth in clauses (1) through (4) of this <u>Section</u> <u>2.8(b)</u> (as certified by the Borrower to the Collateral Agent and the Administrative Agent), the Collateral Agent will release funds from the Principal Collections Account to the Collateral Manager in an amount not to exceed the lesser of (A) the amount requested by the Collateral Manager and (B) the amount on deposit in the Principal Collections Account on such day; 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;(ii) withdraw such funds for the purpose of making payments in respect of the Advances Outstanding at such time in accordance with and subject to the terms of <u>Section</u> <u>2.3(b)</u>.

**Section 2.9. <u>Settlement Procedures during the Default Period</u>**.

On each Payment Date during the Default Period, the Collateral Manager shall direct the Collateral Agent to pay pursuant to the Collateral Management Report (and the Collateral Agent shall make payment from the Collection Account to the extent of Available Funds, in reliance on the information set forth in such Collateral Management Report) to the following Persons, the following amounts in the following order of priority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) *pari passu* to (a) the Collateral Agent and the Collateral Custodian, in an amount equal to any accrued and unpaid Collateral Agent and Portfolio Administration Fee; *provided* that, indemnity amounts payable to the Collateral Agent and the Collateral Custodian pursuant to this clause (1)(a) (and <u>Section</u> <u>2.7(1)(a)</u> and <u>Section</u> <u>2.8(a)(1)</u>, if applicable) shall not, collectively, exceed $100,000 *per annum* and (b) any Person, in an amount equal to any accrued and unpaid Delaware Expenses owing thereto; *provided* that, expenses payable to such Person pursuant to this clause (1)(b) (and <u>Section</u> <u>2.7(1)(b)</u> and <u>Section</u> <u>2.8(a)(1)</u>, if applicable) shall not, collectively, exceed $35,000 *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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to or at the direction of the Collateral Manager, in an amount equal to any accrued and unpaid Collateral Management Fees to the end of the related Collection Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) *pro rata* in accordance with the amounts due under this clause, to each Lender Agent, in an amount equal to any accrued and unpaid Interest, Facility Margin, Commitment Fee and Breakage Costs;

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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;(4) *pro rata* in accordance with the amounts due under this clause, to each Lender Agent for the account of the applicable Lender, and the Administrative Agent, all accrued and unpaid fees, expenses (including attorneys' fees, costs and expenses) and indemnity amounts payable by the Borrower to the Administrative Agent, any Lender Agent or any Lender under the Transaction 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;(5) to the Unfunded Exposure Account in an amount necessary to cause the amount on deposit in the Unfunded Exposure Account to equal the aggregate of all Exposure 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;(6) to pay the Advances Outstanding until paid in full;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) after the BDC Election Date, to the Equityholder to make any applicable Permitted RIC Distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) to pay any other amounts due under this Agreement and the other Transaction Documents (including any indemnity amounts due from the Borrower hereunder and thereunder not previously paid pursuant to clauses (1) and (4) of <u>Section</u> <u>2.9</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;(9) any remaining amounts shall be distributed to the Borrower.

**Section 2.10. <u>Collections and Allocations</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Collections</u>. The Collateral Manager shall promptly identify any collections received as being on account of Interest Collections, Principal Collections or other Collections and shall transfer, or cause to be transferred, all Collections received directly by it to the Collection Account by the close of business on the second (2nd) Business Day after such Collections are received. The Collateral Manager may, on any date, direct the conversion of funds on deposit in the Collection Accounts into Dollars using the foreign currency-dollar spot rate for the applicable Eligible Currency. Such converted funds shall then be transferred into the applicable Collection Account. Upon the transfer of Collections to the Collection Account, the Collateral Manager shall segregate Principal Collections and Interest Collections and transfer the same to the Principal Collections Account and the Interest Collections Account, respectively. The Collateral Manager shall further include a statement as to the amount of Principal Collections and Interest Collections on deposit in the Principal Collections Account and the Interest Collections Account on each Reporting Date in the Collateral Management Report delivered pursuant to <u>Section</u> <u>6.8(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Excluded Amounts</u>. With the prior written consent of the Administrative Agent, the Collateral Manager may withdraw from the Collection Account any deposits thereto constituting Excluded Amounts if the Collateral Manager has, prior to such withdrawal and consent, delivered to the Administrative Agent and each Lender Agent a report setting forth the calculation of such Excluded Amounts in form and substance satisfactory to the Administrative Agent and each Lender 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;(c) <u>Initial Deposits</u>. On the Funding Date with respect to any Loan, the Collateral Manager will deposit into the Collection Account all Collections received in respect of Eligible Loans being transferred to and included as part of the Collateral on such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Investment of Funds</u>. Until the occurrence of a Termination Event and no later than one Business Day following the Closing Date, to the extent there are uninvested amounts deposited in the Collection Account (other than the CAD Collection Account which shall remain uninvested), all such amounts shall be invested in Permitted Investments selected and directed by the Collateral Manager or the Borrower (which may be by a standing order); from and after the occurrence of a Termination Event, to the extent there are uninvested amounts in the Collection Account, all such amounts may be invested in Permitted Investments selected and directed by the Administrative Agent. All earnings (net of losses and investment expenses) thereon shall be retained or deposited into the Collection Account and shall be applied on each Payment Date pursuant to the provisions of <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> and <u>Section</u> <u>2.9</u>. In the absence of any investment direction or selection of investments by the Collateral Manager or the Administrative Agent, as applicable, such amounts in the Collection Account shall remain uninvested.

**Section 2.11. <u>Payments, Computations, Etc</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All amounts to be paid or deposited by the Borrower or the Collateral Manager hereunder shall be paid or deposited in accordance with the terms hereof no later than 1:00 p.m. on the day when due in lawful money of the United States or in such other Eligible Currency in immediately available funds and any amount not received before such time shall be deemed received on the next Business Day. The Borrower or the Collateral Manager, as applicable, shall, to the extent permitted by law (in the case of the Borrower, pursuant to <u>Sections 2.7</u>, <u>2.8</u>, and <u>2.9</u>), pay to the Secured Parties interest on all amounts not paid or deposited when due hereunder at 4.0% *per annum* above the Base Rate (other than with respect to any Advances Outstanding, which shall accrue at the Interest Rate), payable on demand; *provided* that, such interest rate shall not at any time exceed the maximum rate permitted by Applicable Law. Such interest shall be for the account of the applicable Secured Party. Any Aggregate Unpaids hereunder shall not be reduced by any distribution of any portion of Collections if at any time such distribution is rescinded or required to be returned by any Lender to the Borrower or any other Person for any reason. All computations of interest and other fees hereunder shall be made on the basis of a year consisting of 360 days (other than calculations with respect to(x) the Base Rate, which shall be based on a year consisting of 365 or 366 days, as applicable or (y) Daily Simple CORRA, which shall be based on a year consisting of 365 days) for the actual number of days elapsed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever any payment hereunder shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of the payment of Interest or any fee payable hereunder, as the case may be. For avoidance of doubt, to the extent that Available Funds are insufficient on any Payment Date to satisfy the full amount of any Increased Costs pursuant to <u>Section</u> <u>2.7(4)</u> and <u>Section</u> <u>2.8(a)(1)</u>, such unpaid amounts shall remain due and owing and shall accrue interest as provided in <u>Section</u> <u>2.11(a)</u> until repaid in full.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any Advance requested by the Borrower is not effectuated as a result of the Borrower's actions or failure to fulfill any condition under <u>Section</u> <u>3.2</u>, as the case may be, on the date specified therefor, the Borrower shall indemnify the applicable Lender against any reasonable loss, cost or expense incurred by the applicable Lender (other than any such loss, cost or expense solely due to the gross negligence or willful misconduct or failure to fund such Advance on the part of the Lenders, the Lender Agents, the Administrative Agent or an Affiliate thereof), including, without limitation, any loss (including cost of funds and reasonable and documented out-of-pocket expenses), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by the applicable Lender to fund or maintain such Advance. Any such Lender shall provide to the Borrower documentation setting forth the amounts of any loss, cost or expense referred to in the previous sentence, such documentation to be conclusive absent manifest error.

**Section 2.12. <u>Collateral Assignment of Agreements</u>**.

The Borrower hereby assigns to the Collateral Agent, for the benefit of the Secured Parties hereunder, all of the Borrower's right, title and interest in and to, but none of its obligations under, the Underlying Instruments related to each Loan, all other agreements, documents and instruments evidencing, securing or guaranteeing any Loan and all other agreements, documents and instruments related to any of the foregoing but excluding any Excluded Amounts or Retained Interest (the "<u>Assigned Documents</u>"). The Borrower confirms that until the Collection Date the Collateral Agent, on behalf of the Secured Parties, shall have the sole right to enforce the Borrower's rights and remedies under any UCC financing statements filed under or in connection therewith for the benefit of the Secured Parties. The parties hereto agree that such collateral assignment to the Collateral Agent, for the benefit of the Secured Parties, shall terminate upon the Collection Date.

**Section 2.13. <u>Fees</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Commitment Fee</u>. On each applicable Payment Date, the Borrower shall pay, in accordance with <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u>, *pro rata* to the Administrative Agent, for the benefit of each Lender, a commitment fee (the "<u>Commitment Fee</u>") payable in arrears for each Collection Period, equal to the sum of the products for each day during such Collection Period of (i) one *divided by* 360, (ii) the applicable Commitment Fee Rate (as defined below), and (iii) (x) the aggregate Commitments *minus* (y) the Advances Outstanding on such day (such amount, the "<u>Unused Portion</u>") *minus* (z) the Outstanding Amount of Swingline Advances; <u>provided</u> that, only for the purpose of calculating the commitment fee payable to the Swingline Lender, Swingline Advances shall constitute a usage of the Swingline Lender's Commitment. The Commitment Fee Rate (the "<u>Commitment Fee Rate</u>") shall be as follows:

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| | |
|:---|:---|
| **Time Period** | **Commitment Fee Rate** |
| From and including the Closing Date to and including the date that is three months following the Closing Date | 0.25% for any Unused Portion |

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| | |
|:---|:---|
| From and excluding the date that is three months following the Closing Date to and including the date that is nine months following the Closing Date | 0.50% for any Unused Portion |
| From and excluding the date that is nine months following the Closing Date | 0.50% for any Unused Portion up to or equal to 40% of the then current Facility Amount and 1.75% for any Unused Portion in excess of 40% of the then current Facility Amount |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Facility Margin</u>. On each Payment Date, the Borrower shall pay, in accordance with <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u>, *pro rata* to the Administrative Agent, for the benefit of each Lender, a facility margin (the "<u>Facility Margin</u>") payable in arrears for each Collection Period equal to the sum of the products for each day during such Collection Period of (a) one *divided by* 360, (b) the applicable Facility Margin Rate (as defined below) for Advances (or portions thereof) funded at the applicable Interest Rate and (c) the Advances Outstanding on such date funded at the Interest Rate. The facility margin rate (the "<u>Facility Margin Rate</u>") shall be equal to 2.15% *per annum* (*provided* that, at any time during the Default Period, the applicable Facility Margin Rate shall be equal to 4.15% *per annum* for all Advances).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Collateral Manager shall be entitled to the Collateral Management Fee in accordance with <u>Section</u> <u>2.7(2)</u>, <u>Section</u> <u>2.8(a)(1)</u> and <u>Section</u> <u>2.9(2)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Collateral Agent and the Collateral Custodian shall be entitled to receive the Collateral Agent and Portfolio Administration Fee in accordance with <u>Section</u> <u>2.7(1)</u>, <u>Section</u> <u>2.8(a)(1)</u> and <u>Section</u> <u>2.9(1)</u>, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Borrower shall pay to Cadwalader, Wickersham & Taft LLP, as counsel to the Administrative Agent, its reasonable fees and out-of-pocket expenses that are required to be paid by the Borrower hereunder within thirty (30) Business Days after receiving an invoice for such amounts.

**Section 2.14. <u>Increased Costs; Capital Adequacy; Illegality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If either (i) the introduction of or any change following the Closing Date (including, without limitation, any change by way of imposition or increase of reserve requirements) in or in the interpretation of any Applicable Law or (ii) the compliance by an Affected Party with any guideline or request following the Closing Date from any central bank or other Governmental Authority (whether or not having the force of law), shall (a) subject an Affected Party to any Tax (other than any Indemnified Taxes and Excluded Taxes) on its loans, loan principal, letters of credit, commitments or other obligations or its deposits, reserves, other liabilities or capital thereto; (b) impose, modify or deem applicable any reserve requirement (including, without limitation, any reserve requirement imposed by the Board of Governors of the Federal Reserve System, but excluding any reserve requirement, if any, included in the determination of Interest), special deposit or similar requirement against assets of, deposits with or for the amount of, or credit extended by, any Affected Party or (c) impose any other condition affecting the security interest in the Collateral conveyed to the Lenders hereunder or any Affected

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Party's rights hereunder or under any other Transaction Document or any Liquidity Agreement, the result of which is to increase the cost (other than Taxes) to any Affected Party or to reduce the amount of any sum received or receivable by an Affected Party under this Agreement (other than a reduction caused by Taxes), under any other Transaction Document or any Liquidity Agreement, then within ten (10) days after demand by such Affected Party (which demand shall be accompanied by a statement setting forth the basis for such demand), the Borrower shall pay directly to such Affected Party such additional amount or amounts as will compensate such Affected Party for such increased costs or reduced payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If either (i) the introduction of or any change following the Closing Date in or in the interpretation of any law, guideline, rule, regulation, directive or request or (ii) compliance by any Affected Party with any law, guideline, rule, regulation, directive or request following the Closing Date from any central bank or other governmental authority or agency (whether or not having the force of law), including, without limitation, compliance by an Affected Party with any request or directive regarding capital adequacy, has or would have the effect of reducing the rate of return on the capital of any Affected Party as a consequence of its obligations hereunder or arising in connection herewith to a level below that which any such Affected Party could have achieved but for such introduction, change or compliance (taking into consideration the policies of such Affected Party with respect to capital adequacy) by an amount deemed by such Affected Party to be material, then from time to time, within ten (10) days after demand by such Affected Party (which demand shall be accompanied by a statement setting forth the basis for such demand), the Borrower shall pay directly to such Affected Party such additional amount or amounts as will compensate such Affected Party for such reduction. For the avoidance of doubt, if the issuance of Interpretation No. 46 (and/or any amendment or supplement thereto or to Statement of Financial Accounting Standards No. 140) by the Financial Accounting Standards Board or any other change in accounting standards or the issuance of any other pronouncement, release or interpretation, causes or requires the consolidation of all or a portion of the assets and liabilities of the Equityholder, the Borrower or any Lender with the assets and liabilities of the Administrative Agent, any Lender Agent, any Lender or any Liquidity Bank or shall otherwise impose any loss, cost, expense, reduction of return on capital or other loss, such event shall constitute a circumstance on which such Affected Party may base a claim for reimbursement under this <u>Section</u> <u>2.14</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If as a result of any event or circumstance similar to those described in clause (a) or (b) of this <u>Section</u> <u>2.14</u>, any Affected Party is required to compensate a bank or other financial institution providing liquidity support, credit enhancement or other similar support to such Affected Party in connection with this Agreement or the funding or maintenance of Advances hereunder, then within ten (10) days after demand by such Affected Party, the Borrower shall pay to such Affected Party such additional amount or amounts as may be necessary to reimburse such Affected Party for any amounts payable or paid by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In determining any amount provided for in this <u>Section</u> <u>2.14</u>, the Affected Party may use any reasonable averaging and attribution methods. Any Affected Party making a claim under this <u>Section</u> <u>2.14</u> shall submit to the Collateral Manager a written description as to such additional or increased cost or reduction and the calculation thereof, which written description shall be conclusive absent manifest error.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If a Disruption Event as described in clause (a) of the definition of "Disruption Event" with respect to any Lender has occurred and is continuing, the applicable Lender Agent shall in turn so notify the Borrower, whereupon all Advances Outstanding of the affected Lender in respect of which Interest accrues at the Benchmark for such Eligible Currency shall immediately be converted into Advances Outstanding in respect of which Interest accrues at the Base Rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Failure or delay on the part of any Affected Party to demand compensation pursuant to this <u>Section</u> <u>2.14</u> shall not constitute a waiver of such Affected Party's right to demand or receive such compensation; *provided* that each Affected Party will notify the Borrower promptly after it has received official notice of any event occurring after the Closing Date which will entitle such Affected Party to such additional amounts as compensation pursuant to this <u>Section</u> <u>2.14</u>. Such additional amounts shall accrue from the date as to which such Affected Party becomes subject to such additional costs as a result of such event.

&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, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, and 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 Applicable Law for purposes of clause (a) above, regardless of the date enacted, adopted or issued.

**Section 2.15. <u>Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments made by the Borrower or made by the Collateral Manager on behalf of the Borrower under this Agreement will be made without deduction or withholding for any Taxes, except as required by Applicable Law. If, in accordance with Applicable Law (as determined in the good faith discretion of the Borrower), any Taxes are required to be withheld from any amounts payable to any Secured Party, then the Borrower or the Collateral Manager on behalf of the Borrower shall be entitled to withhold or deduct the full amount required to be so withheld or deducted 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 amount payable to such Person will be increased (the amount of such increase, the "<u>Additional Amount</u>") such that every net payment made under this Agreement after withholding for any Indemnified Taxes (including, without limitation, any Indemnified Taxes on such increase) is not less than the amount that would have been paid had no such deduction or withholding been made. The foregoing obligation to pay Additional Amounts with respect to payments required to be made by the Borrower or Collateral Manager under this Agreement will not, however, apply with respect to (1) Taxes imposed on or measured by net income (however denominated), franchise Taxes, or branch profits Taxes, in each case imposed on any Secured Party by a taxing jurisdiction (x) in which any such Person is organized, as a result of having its principal office in, or in which its applicable lending office is located or (y) as a result of a present or former connection between such Secured Party and the relevant jurisdiction imposing such Tax (other than any such connection arising from such Secured Party having executed, delivered or performed its obligations or received a payment under, perfected a security interest under this Agreement, engaged in any other transaction pursuant to this Agreement, sold or assigned its interest, or

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enforced this Agreement); (2) with respect to a Lender, any U.S. federal withholding tax that is imposed on amounts payable such Lender pursuant to a law in effect at the time such Lender becomes a party to this Agreement or designates a new lending office, except to the extent that such Secured Party was otherwise entitled, at the time of designation of a new lending office, to receive additional amounts from the Borrower or the Collateral Manager with respect to such withholding Tax pursuant to this <u>Section</u> <u>2.15</u>; (3) any Tax is attributable to a Secured Party's failure to comply with <u>Sections 2.15(d)</u>, <u>(e)</u>, <u>(f)</u> and <u>(g)</u>; and (4) any Tax that is imposed under FATCA (collectively, "<u>Excluded Taxes</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will indemnify from funds available to it pursuant to <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u> (and to the extent the funds available for indemnification provided by the Borrower are insufficient the Collateral Manager, on behalf of the Borrower, will indemnify) each Secured Party within ten (10) days after demand therefor, for the full amount of (i) any Indemnified Taxes that are payable or paid by such Secured Party, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority; (ii) any unpaid Additional Amount that is required to be paid pursuant to <u>Section</u> <u>2.15(a)</u>; and (iii) any reasonable expenses arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability delivered to the Borrower by a Secured Party (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf or on behalf of 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;(c) Within thirty (30) days after the date of any payment by the Borrower or by the Collateral Manager on behalf of the Borrower of any Indemnified Taxes, the Borrower or the Collateral Manager, as applicable, will furnish to the Administrative Agent and the Lender Agents in accordance with <u>Section</u> <u>13.2</u>, appropriate evidence of payment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Secured Party that is entitled to an exemption from or reduction of withholding Tax with respect to payments made under this Agreement shall deliver to the Borrower, with a copy to the Administrative Agent and Collateral Agent, at the time or times reasonably requested by the Borrower, the Administrative Agent, or the Collateral Agent, such properly completed and executed documentation reasonably requested by the Borrower, the Administrative Agent, or the Collateral Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, each Secured Party, if reasonably requested by the Borrower, the Administrative Agent, or the Collateral Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrower, the Administrative Agent, or the Collateral Agent as will enable the Borrower, the Administrative Agent, or the Collateral Agent 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 <u>Sections</u> <u>2.15(e)</u>, <u>(f)</u>, and <u>(g)</u> below) 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.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent legally entitled to do so under Applicable Law, each Secured Party that is not a United States person (within the meaning of Section 7701(a)(30) of the Code) shall deliver to the Borrower, with a copy to the Administrative Agent and the Collateral Agent, at the time it becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of the Borrower, the Administrative Agent, or the Collateral Agent), two (or such other number as may from time to time be prescribed by Applicable Law) properly completed and duly executed copies of IRS Form W-8BEN, Form W-8BEN-E, Form W-8IMY or Form W-8ECI, as appropriate (or any successor or other applicable form prescribed by the IRS), to permit the Borrower or the Collateral Manager to make payments hereunder for the account of such Secured Party without deduction or withholding of United States federal income or similar Taxes. Upon the obsolescence of, or after the occurrence of any event or circumstance requiring a change in, any form or certificate previously delivered pursuant to this <u>Section</u> <u>2.15(e)</u>, such Secured Party shall promptly update such form or certificate and deliver properly completed and duly executed new certificates to the Borrower, the Administrative Agent, and the Collateral Agent, or promptly notify the Borrower, the Administrative Agent, and the Collateral Agent 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;(f) Each Secured Party that is a United States person (within the meaning of Section 7701(a)(30) of the Code) shall deliver to the Borrower, with a copy to the Administrative Agent and Collateral Agent, at the time it becomes a party to this Agreement (and from time to time thereafter upon the reasonable request of the Borrower, the Administrative Agent, and the Collateral Agent), two (or such other number as may from time to time be prescribed by Applicable Law) properly completed and duly executed copies of IRS Form W-9 (or any successor or other applicable form prescribed by the IRS) to permit the Borrower or the Collateral Manager to make payments hereunder for the account of such Secured Party without deduction or withholding of United States federal backup withholding Taxes. Upon the obsolescence of or after the occurrence of any event or circumstance requiring a change in any form or certificate previously delivered pursuant to this <u>Section</u> <u>2.15(f)</u>, such Secured Party shall promptly update such form or certificate and deliver properly completed and duly executed new certificates to the Borrower, the Administrative Agent, and the Collateral Agent, or promptly notify the Borrower, the Administrative Agent, and the Collateral Agent 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;(g) If a payment made to a Secured Party under this Agreement would be subject to U.S. federal withholding Tax imposed by FATCA if such Secured Party 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 Secured Party shall deliver to the Borrower, the Administrative Agent, and the Collateral Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrower, the Administrative Agent, and the Collateral Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower, the Administrative Agent, and the Collateral Agent as may be necessary for the Borrower, the Administrative Agent, and the Collateral Agent to comply with their obligations under FATCA and to determine that such Secured Party has complied with such Secured Party's obligations under FATCA or to determine the amount to deduct and withhold from such payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If any Indemnified Party determines, in its sole discretion, exercised in good faith, that it has received a refund in respect of any Taxes as to which indemnification or additional amounts have been paid to it by the Borrower or the Collateral Manager pursuant to this <u>Section</u> <u>2.15</u>, it shall promptly remit the portion of such refund to the Borrower or the Collateral Manager that it determines in its sole discretion, exercised in good faith, will leave it in no worse

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after-Tax position (taking into account all out-of-pocket expenses of the Indemnified Party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund)) than it would have been in if the taxes giving rise to such refund had never been imposed in the first instance; *provided* that, the Borrower or the Collateral Manager, upon the request of the Indemnified Party, agree promptly to return such refund to such party in the event such party is required to repay such refund to the relevant taxing authority (including any interest or penalties). Nothing in this <u>Section</u> <u>2.15(h)</u> shall interfere with the right of an Indemnified Party to arrange its tax affairs in whatever manner it thinks fit nor oblige any Indemnified Party to claim any tax refund or to make available its tax returns or other confidential information or disclose any information relating to its tax affairs or any computations in respect thereof or require any Indemnified Party to do anything that would prejudice its ability to benefit from any other refunds, credits, reliefs, remissions or repayments to which it may be entitled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Without prejudice to the survival of any other agreement of the Parties hereunder, the agreements and obligations of the Parties contained in this <u>Section</u> <u>2.15</u> shall survive the termination of this Agreement.

**Section 2.16. <u>Affiliate Transactions</u>**.

The Collateral Manager (or an Affiliate thereof) shall not reacquire from the Borrower and, other than pursuant to a Permitted Securitization, a Permitted Refinancing, a Discretionary Sale or the distribution of a Lien Release Dividend, the Borrower shall not transfer to the Collateral Manager or to Affiliates of the Collateral Manager, and none of the Collateral Manager nor any Affiliates thereof will have a right or ability to purchase, the Loans without the prior written consent of the Administrative Agent.

**Section 2.17. <u>Substitution and Transfer of Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Substitution of Loans</u>. On any day prior to the occurrence of a Termination Event (and after the earlier to occur of the Reinvestment Period End Date or the Termination Date at the sole discretion of the Administrative Agent), the Borrower may, subject to the conditions set forth in this <u>Section</u> <u>2.17</u> and subject to the other restrictions contained herein, replace any Loan with one or more Eligible Loans (each, a "<u>Substitute Loan</u>"); *provided* that, no such replacement shall occur unless each of the following conditions is satisfied as of the date of such replacement and substitution (as certified in writing to the Administrative Agent and the Collateral Agent by the Borrower):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower or Collateral Manager has recommended to the Administrative Agent (with a copy to the Collateral Custodian and the Collateral Agent) in writing that the Loan to be replaced should be replaced (each a "<u>Replaced Loan</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;(ii) each Substitute Loan is an Eligible Loan on the date of substitution;

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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;(iii) after giving effect to any such substitution, the Availability is greater than or equal to $0;

&nbsp;&nbsp;&nbsp;&nbsp;&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) solely in the case of substitutions pursuant to <u>Section</u> <u>2.17(b)</u>, the sum of the Adjusted Balances of such Substitute Loans shall be equal to or greater than the sum of the Adjusted Balances of the Replaced Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all representations and warranties contained in <u>Section</u> <u>4.1</u>, <u>Section</u> <u>4.2</u> and <u>Section</u> <u>4.3</u> shall be true and correct in all material respects (or, if qualified by materiality or Material Adverse Effect or any similar term, in all respects) as of the date of substitution of any such Substitute Loan (except to the extent relating to an earlier 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;(vi) the inclusion of any Substitute Loan does not cause a Termination Event or Unmatured Termination Event to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the sum of the OLB of the Loan(s) which are the subject of the proposed substitution on the Substitution Date, together with the sum of the OLB of the Loan(s) substituted in the preceding 12 month period (or such lesser number of months as shall have elapsed as of such date), shall not exceed 15% (or such higher percentage as the Administrative Agent may agree to in its sole discretion) of the Facility Amount; *provided* that (i) Loans substituted for Warranty Loans and (ii) Loans(s) substituted to cure a Borrowing Base Deficiency shall be excluded from the aforementioned limitation in this clause (vii);

&nbsp;&nbsp;&nbsp;&nbsp;&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 Loan that is replaced pursuant to the terms of this <u>Section</u> <u>2.17</u> shall be substituted only with another Loan that meets the foregoing 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;(ix) in the selection of each Replaced Loan or each Substitute Loan, no selection procedures were employed which are intended to be adverse to the interests of the Administrative Agent, the Lender Agents, the Collateral Agent or the Secured 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;(x) the Borrower shall agree to pay the reasonable and documented legal fees and expenses of the Administrative Agent, the Collateral Agent, each Lender Agent, the Collateral Custodian and the other Secured Parties in connection with any such substitution (including, but not limited to, expenses incurred in connection with the release of the Lien of the Collateral Agent, on behalf of the Secured Parties, and any other party having an interest in the Loan in connection with such sale, substitution or repurchase);

&nbsp;&nbsp;&nbsp;&nbsp;&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) the Borrower shall give five (5) Business Days' notice of such substitution to the Administrative Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the Borrower shall notify the Administrative Agent of any amount to be deposited into the Collection Account in connection with any such substitution.

In addition, the Borrower shall in connection with such substitution deliver to the Collateral Custodian the related Required Loan Documents. On the date any such substitution is completed (the "<u>Substitution Date</u>"), the Collateral Agent, for the benefit of the Secured Parties, shall, automatically and without further action, release and transfer to the Borrower, free and clear of any Lien created pursuant to this Agreement, all of the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties, in, to and under such Replaced Loan, but without any representation and warranty of any kind, express or implied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Transfer or Substitution of Warranty Loans</u>. If on any day a Loan is (or becomes) a Warranty Loan, no later than ten (10) Business Days following the earlier of knowledge by the Borrower of such Loan becoming a Warranty Loan or receipt by the Borrower from the Administrative Agent or the Collateral Manager of written notice thereof, the Borrower 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;(i) make a deposit to the Collection Account (for allocation pursuant to <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> or <u>Section</u> <u>2.9</u>, as applicable) in immediately available funds in an amount equal to the sum of (a) an amount sufficient to reduce the Advances Outstanding such that, after giving effect to the transfer of such Warranty Loan pursuant to this <u>Section</u> <u>2.17</u>, the Availability will be equal to or greater than $0 *plus* (b) any expenses or fees with respect to such Loan and costs and damages incurred by the Administrative Agent or by any Lender in connection with any violation by such Loan of any predatory or abusive lending law which is an Applicable Law (collectively, the "<u>Retransfer Price</u>"); *provided* that, the Administrative Agent shall have the right to determine whether the amount so deposited is sufficient to satisfy the foregoing requirements; *provided further* that, no such repayment shall be required to be made with respect to such Warranty Loan (and such Loan shall cease to be a Warranty Loan) if the Administrative Agent determines in its sole discretion that such Warranty Loan can be (and such Warranty Loan is) cured or brought into compliance, as applicable, on or before the expiration of such ten (10) Business Day period; 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;(ii) with the prior written consent of the Administrative Agent, subject to the satisfaction of the conditions in <u>Section</u> <u>2.17(a)</u>, substitute for such Warranty Loan a Substitute Loan; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) sell such Warranty Loan in accordance with the provisions set forth in <u>Section</u> <u>2.19</u>.

The Borrowing Base shall be reduced by the Adjusted Balance of each such Warranty Loan and, if applicable, increased by the Adjusted Balance of each Substitute Loan that is replacing a Warranty Loan. Upon confirmation of the deposit of such Retransfer Price or proceeds from such Discretionary Sale into the Collection Account or the delivery by the Borrower of a Substitute Loan for each Warranty Loan (the date of such confirmation or delivery, the "<u>Retransfer Date</u>"), such Warranty Loan shall be removed from the Collateral and, as applicable, the Substitute Loan shall be included in the Collateral. On the Retransfer Date of each Warranty Loan, the Collateral Agent, for the benefit of the Secured Parties, shall automatically and without further action be deemed to transfer, assign and set-over to the Borrower (or the Collateral Manager, as applicable), without recourse, representation or warranty, all the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties in, to and under such Warranty Loan and all future monies due or to become due with respect thereto, the Related Property, all Proceeds of such Warranty Loan, and Recoveries relating thereto, all rights to security for any such Warranty Loan, and all Proceeds and products of the foregoing. The Collateral Agent, for the benefit of the Secured Parties, shall, at the sole expense of the Borrower, execute such documents and instruments of transfer as may be prepared by the Collateral Manager, on behalf of the Borrower, and take other such actions as shall reasonably be requested by the Borrower to effect the transfer of such Warranty Loan pursuant to this <u>Section</u> <u>2.17</u>.

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**Section 2.18. <u>Optional Sales</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the occurrence of an Unmatured Termination Event or a Termination Event, on any Optional Sale Date, the Borrower shall have the right to prepay all or a portion of the Advances Outstanding in connection with the transfer and assignment of all or a portion of the Loans, as the case may be in connection with a Permitted Securitization or a Permitted Refinancing (each, an "<u>Optional Sale</u>"), subject to the following 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Collateral Manager, on behalf of the Borrower, shall have given the Administrative Agent (with a copy to the Collateral Custodian and the Collateral Agent) at least ten (10) Business Days' prior written notice of its intent to effect an Optional Sale in connection with a Permitted Securitization or a Permitted Refinancing, and the Administrative Agent shall have delivered to the Borrower its prior written consent (in its sole discretion) to such Optional Sale, unless such ten (10) Business Days' notice requirement is waived or reduced by the Administrative Agent; *provided* that, no such consent will be required for any Optional Sale (other than an Optional Sale in connection with a Permitted Securitization) of any Loan at a price equal to or greater than the Adjusted Balance of such Loan as of the date of the Optional 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Unless an Optional Sale is to be effected on a Payment Date (in which case the relevant calculations with respect to such Optional Sale shall be reflected on the applicable Collateral Management Report), the Collateral Manager, on behalf of the Borrower, shall deliver to the Administrative Agent (with a copy to the Collateral Custodian and the Collateral Agent) a certificate and evidence to the reasonable satisfaction of the Administrative Agent (which evidence may consist solely of a certificate from the Collateral Manager) that the Borrower shall have sufficient funds on the related Optional Sale Date to effect the contemplated Optional Sale in accordance with this Agreement. In effecting an Optional Sale, the Borrower may use the Proceeds of dispositions of the Loans to repay all or a portion of the Aggregate Unpaids;

&nbsp;&nbsp;&nbsp;&nbsp;&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) After giving effect to the Optional Sale and the assignment by the Borrower of all or a portion of the Loans, as the case may be, on any Optional Sale Date, (a) the Availability shall be greater than or equal to $0, (b) the representations and warranties contained in <u>Sections</u> <u>4.1</u>, <u>4.2</u> and <u>4.3</u> hereof shall continue to be true and correct in all material respects (or, if qualified by materiality or Material Adverse Effect or any similar term, in all respects), except to the extent relating to an earlier date and (c) neither an Unmatured Termination Event nor a Termination Event shall have resulted from the Optional Sale;

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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;(iv) On the related Optional Sale Date, the Administrative Agent, each Lender Agent, on behalf of the applicable Lender, the Collateral Custodian and the Collateral Agent, as applicable, shall have received, as applicable, in immediately available funds, an amount sufficient to reduce the Advances Outstanding in accordance with <u>Section</u> <u>2.3(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;(v) On or prior to each Optional Sale Date, the Collateral Manager, on behalf of the Borrower, shall have delivered to the Administrative Agent a list specifying all Loans to be sold and assigned pursuant to such Optional Sale; 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;(vi) In the selection of the Loans to be sold and assigned pursuant to such Optional Sale, no selection procedures were employed which are intended to be adverse to the interests of the Administrative Agent, the Lender Agents, the Collateral Agent or the Secured Parties.

&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 Optional Sale, following receipt by the Administrative Agent, the Collateral Agent, the Lender Agents, the Lenders, the Collateral Custodian and the Secured Parties, as applicable, of the amounts referred to in clause (a)(iv) above, there shall be transferred and assigned to or at the direction of the Borrower without recourse, representation or warranty all of the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties in, to and under the portion of the Collateral subject to such Optional Sale and such portion of the Collateral so transferred shall be released from the Lien of this Agreement (subject to the requirements of clauses (ii) and (iii) above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower hereby agrees to pay the reasonable and documented legal fees and expenses of the Administrative Agent, the Collateral Agent, each Lender Agent, the Collateral Custodian and the other Secured Parties in connection with any Optional Sale (including, but not limited to, expenses incurred in connection with the release of the Lien of the Collateral Agent, on behalf of the Secured Parties, and any other party having an interest in the Collateral in connection with such Optional Sale).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In connection with any Optional Sale, on the related Optional Sale Date, the Collateral Agent, on behalf of the Secured Parties, shall, at the expense of and at the direction of the Borrower (i) execute such instruments of release in favor of or at the direction of the Borrower with respect to the portion of the Collateral to be retransferred to, or at the direction of, the Borrower, as the Borrower may reasonably request (in recordable form if necessary), (ii) deliver any portion of the Collateral to be retransferred to or at the direction of the Borrower in its possession to or at the direction of the Borrower and (iii) otherwise take such actions, and cause or permit the Collateral Custodian to take such actions, as are necessary and appropriate to release the Lien of the Collateral Agent, on behalf of the Secured Parties, on the portion of the Collateral to be retransferred to or at the direction of the Borrower and release and deliver to the Borrower such portion of the Collateral to be retransferred to the Borrower.

**Section 2.19. <u>Discretionary Sales</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the occurrence of an Unmatured Termination Event or a Termination Event, on any Discretionary Sale Date, the Borrower shall have the right to prepay all or a portion of the Advances Outstanding in connection with the transfer and assignment to (x) an Affiliate of the Borrower, Collateral Manager or Equityholder for an amount not less than the higher of (i) the fair market value and (ii) the related Adjusted Balance or (y) any other Person, in each case on an arms-length basis by the Borrower of, and the release of any related Lien by the Collateral Agent over, one or more Loans (each, a "<u>Discretionary Sale</u>"), subject to the following terms and conditions:

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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;(i) At least two (2) Business Days prior to each Discretionary Sale Date, the Collateral Manager, on behalf of the Borrower, shall have given the Administrative Agent (with a copy to the Collateral Custodian and the Collateral Agent) written notice of its intent to effect a Discretionary Sale (each such notice a "<u>Discretionary Sale Notice</u>"), specifying the Discretionary Sale Date and including a list of all Loans, or portions thereof, to be sold and assigned pursuant to such Discretionary Sale, and a revised Borrowing Base Certificate; *provided* that, prior written consent of Administrative Agent, in its sole discretion, will be required for any Discretionary Sale of any Loan at a price less than the Adjusted Balance of such Loan as of the date of the Discretionary Sale; *provided*, *further* that no such Discretionary Sale Notice shall be required for the sale of any Loan from the Borrower to affiliates of the Audax Private Debt Entities, or in connection with a primary syndication of a 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any Discretionary Sale shall be made in a transaction (i) in accordance with the Collateral Management Standard and (ii) in which the Borrower makes no representations, warranties or covenants and provides no indemnification for the benefit of any other party to the Discretionary Sale (other than that the Borrower has good title thereto, free and clear of all Liens and has the right to sell the related 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Collateral Manager shall deliver to the Administrative Agent (with a copy to the Collateral Agent) a completed Borrowing Base Certificate and other evidence to the reasonable satisfaction of the Administrative Agent that the Borrower shall have sufficient funds on the related Discretionary Sale Date to effect the contemplated Discretionary Sale in accordance with this Agreement (unless a Discretionary Sale is to be effected on a Payment Date, in which case there must be sufficient Available Funds to effect the contemplated Discretionary Sale in accordance with the terms of this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) After giving effect to the Discretionary Sale and the assignment by the Borrower of the Collateral on any Discretionary Sale Date, (a) the Availability is greater than or equal to zero, (b) the representations and warranties contained in <u>Section</u> <u>4.1</u>, <u>4.2</u> and <u>4.3</u> hereof shall continue to be correct in all material respects, except to the extent relating to an earlier date and (c) neither an Unmatured Termination Event nor a Termination Event shall have resulted;

&nbsp;&nbsp;&nbsp;&nbsp;&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) On the related Discretionary Sale Date, the Administrative Agent, each Lender Agent, on behalf of the applicable Lender, the Collateral Custodian and the Collateral Agent, as applicable, shall have received, as applicable, in immediately available funds, an amount sufficient to reduce the Advances Outstanding in accordance with <u>Section</u> <u>2.3(b)</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;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The OLB of the Loan(s) which are the subject of the proposed Discretionary Sale, together with the OLB of the Loan(s) sold in all other Discretionary Sales made in the preceding 12 month period (or such lesser number of months as shall have elapsed as of such date), shall not exceed 25% (or such higher percentage as the Administrative Agent may agree to in its sole discretion) of the Facility Amount; 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;(vii) On the related Discretionary Sale Date, the proceeds from such Discretionary Sale have been sent directly into the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with any Discretionary Sale, following receipt by the Administrative Agent, the Collateral Agent, the Lender Agents, the Lenders, the Collateral Custodian and the Secured Parties, as applicable, of the amounts referred to in clause (v) above, there shall be transferred and assigned to or at the direction of the Borrower (for further sale to a third party unaffiliated with the Borrower, the Equityholder or the Collateral Manager) without recourse, representation or warranty all of the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties in, to and under the portion of the Collateral subject to such Discretionary Sale and such portion of the Collateral so transferred shall be released from the Lien of this Agreement (subject to the requirements of clauses (iii) and (iv) above).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower hereby agrees to pay the reasonable and documented legal fees and expenses of the Administrative Agent, the Collateral Agent, each Lender Agent, the Collateral Custodian and the other Secured Parties in connection with any Discretionary Sale (including, but not limited to, expenses incurred in connection with the release of the Lien of the Collateral Agent, on behalf of the Secured Parties, and any other party having an interest in the Collateral in connection with such Discretionary Sale).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In connection with any Discretionary Sale, on the related Discretionary Sale Date, the Collateral Agent, on behalf of the Secured Parties, shall, at the expense of the Borrower (i) execute such instruments of release with respect to the portion of the Collateral to be retransferred to, or at the direction of, the Borrower, in recordable form if necessary, as the Borrower may reasonably request, (ii) deliver any portion of the Collateral to be retransferred to, or at the direction of, the Borrower in its possession to the Borrower and (iii) otherwise take such actions, and cause or permit the Collateral Agent to take such actions, as are necessary and appropriate to release the Lien of the Collateral Agent, on behalf of the Secured Parties on the portion of the Collateral to be retransferred to, or at the direction of, the Borrower and release and deliver to the Borrower such portion of the Collateral to be retransferred to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding any provision contained in this Agreement to the contrary, if no Termination Event has occurred and no Unmatured Termination Event exists, on a Lien Release Dividend Date, the Borrower may distribute to the Equityholder any Loan that was transferred by the Equityholder to the Borrower, or any portion thereof (each, a "<u>Lien Release Dividend</u>"), subject to the following terms and conditions, the satisfaction of which shall have been certified by the Borrower to the Administrative Agent, the Collateral Agent and the Collateral Custodian (upon which all such recipients may conclusively rely):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall have given the Administrative Agent, with a copy to the Collateral Agent and the Collateral Custodian, at least five (5) Business Days prior written notice of its intent to effect a Lien Release Dividend, in the form of <u>Exhibit M</u> hereto (a "<u>Notice and Request for Consent</u>"), and the Administrative Agent shall have delivered to

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the Borrower prior written consent, which consent shall be given in the sole and absolute discretion of the Administrative Agent; *provided* that, if the Administrative Agent shall not have responded to the Notice and Request for Consent by 11:00 a.m. on the day that is one (1) Business Day prior to the proposed Lien Release Dividend Date, the Administrative Agent shall be deemed not to have given its consent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) On any Lien Release Dividend Date, no more than four Lien Release Dividends shall have been made during the 12-month period immediately preceding the proposed Lien Release Dividend 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;(iii) After giving effect to the Lien Release Dividend on the Lien Release Dividend Date, (A) no Borrowing Base Deficiency, Termination Event or Unmatured Termination Event shall exist, (B) the representations and warranties contained in <u>Sections 4.1</u> and <u>4.2</u> hereof shall continue to be correct in all material respects, except to the extent relating to an earlier date, (C) the eligibility of any Loan remaining as part of the Collateral after the Lien Release Dividend will be redetermined as of the Lien Release Dividend Date, (D) no claim shall have been asserted or proceeding commenced challenging the enforceability or validity of any of the Required Loan Documents and (E) there shall have been no material adverse change as to the Collateral Manager or the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Such Lien Release Dividend must be in compliance with Applicable Law and may not (A) be made with the intent to hinder, delay or defraud any creditor of the Borrower or (B) leave the Borrower, immediately after giving effect to the Lien Release Dividend, (x) insolvent, (y) with insufficient funds to pay its obligations as and when they become due or (z) with inadequate capital for its present and anticipated business and transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&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) On or prior to the Lien Release Dividend Date, the Borrower shall have (A) delivered to the Administrative Agent, with a copy to the Collateral Agent and the Collateral Custodian, a list specifying all Loans or portions thereof to be transferred pursuant to such Lien Release Dividend and the Administrative Agent shall have approved same in its sole discretion and (B) obtained all authorizations, consents and approvals required to effectuate the Lien Release Dividend;

&nbsp;&nbsp;&nbsp;&nbsp;&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) A portion of a Loan may be transferred pursuant to a Lien Release Dividend *provided* that (A) such transfer does not have an adverse effect on the portion of such Loan remaining as a part of the Collateral, any other aspect of the Collateral, the Lenders, the Administrative Agent or any other Secured Party and (B) a new promissory note (other than with respect to a Noteless Loan) for the portion of the Loan remaining as a part of the Collateral has been executed, and the original thereof has been endorsed to the Collateral Agent and delivered to the Collateral Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Each Loan, or portion thereof, as applicable, shall be transferred at a value equal to the outstanding principal balance thereof, exclusive of any accrued and unpaid interest or PIK Interest thereon;

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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;(viii) The Borrower shall have paid in full an aggregate amount equal to the sum of all amounts due and owing to the Administrative Agent, the Lenders, the Collateral Agent and/or the Collateral Custodian, as applicable, under this Agreement and the other Transaction Documents, to the extent accrued to such date with respect to the Loans, or portions thereof, to be transferred pursuant to such Lien Release Dividend and incurred in connection with the transfer of such Loans pursuant to such Lien Release Dividend; 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;(ix) The Borrower shall pay the reasonable legal fees and expenses of the Administrative Agent, the Lenders, the Collateral Agent and the Collateral Custodian in connection with any Lien Release Dividend (including, but not limited to, expenses incurred in connection with the release of the Lien of the Collateral Agent, on behalf of the Secured Parties, and any other party having an interest in the Loans in connection with such Lien Release Dividend).

**Section 2.20. <u>Instructions to the Collateral Agent</u>**.

All instructions and directions given to the Collateral Agent by the Collateral Manager, the Borrower or the Administrative Agent pursuant to <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u> shall be in writing (including instructions and directions transmitted to the Collateral Agent by facsimile or e-mail), and such written instructions and directions shall be delivered with a written certification that such instructions and directions are in compliance with the provisions of <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u>. The Collateral Manager and the Borrower shall immediately transmit to the Administrative Agent by facsimile or e-mail a copy of all instructions and directions given to the Collateral Agent by such party pursuant to <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u>. The Administrative Agent shall promptly transmit to the Collateral Manager and the Borrower by facsimile or e-mail a copy of all instructions and directions given to the Collateral Agent by the Administrative Agent, pursuant to <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u>. If either the Administrative Agent or Collateral Agent disagrees with the computation of any amounts to be paid or deposited by the Borrower or the Collateral Manager under <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u> or otherwise pursuant to this Agreement, or upon their respective instructions, the Administrative Agent shall so notify the Borrower, the Collateral Manager and the Collateral Agent in writing and in reasonable detail to identify the specific disagreement. If such disagreement cannot be resolved within five (5) Business Days, the determination of the Administrative Agent as to such amounts shall be conclusive and binding on the parties hereto absent manifest error. In the event the Collateral Agent receives instructions from the Collateral Manager or the Borrower which conflict with any instructions received from the Administrative Agent, the Collateral Agent shall rely on and follow the instructions given by the Administrative Agent.

**Section 2.21. <u>Refunding of</u> <u>Swingline</u> <u>Advances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Swingline Advance shall be refunded by the Lenders on the second (2nd) Business Day following the date of such Swingline Advance (each such date, a "<u>Swingline Refund Date</u>"). Such refundings shall be made by the Lenders in accordance with their respective Pro Rata Shares and shall thereafter be reflected as Advances of the Lenders on the books and records of the Administrative Agent. Each Lender shall fund its respective Pro Rata Share of Advances as required to repay Swingline Advances outstanding to the Swingline Lender no later than 12:00 noon on the applicable Swingline Refund Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall pay to the Swingline Lender, within two (2) Business Days of demand, the amount of such Swingline Advances to the extent amounts received from the Lenders are not sufficient to repay in full the outstanding Swingline Advances requested or required to be refunded. If any portion of any such amount paid to the Swingline Lender shall be recovered by or on behalf of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the amount so recovered shall be ratably shared among all the Lenders in accordance with their respective Pro Rata Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Lender acknowledges and agrees that its obligation to refund Swingline Advances in accordance with the terms of this Section is absolute and unconditional and shall not be affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the conditions set forth in <u>Section</u> <u>3.2</u>. Further, each Lender agrees and acknowledges that if prior to the refunding of any outstanding Swingline Advances pursuant to this Section, an Insolvency Event relating to the Borrower or the Collateral Manager shall have occurred, each Lender will, on the date the applicable Advance would have been made, purchase an undivided participating interest in the Swingline Advance to be refunded in an amount equal to its Pro Rata Share of the aggregate amount of such Swingline Advance. Each Lender will immediately transfer to the Swingline Lender, in immediately available funds, the amount of its participation and upon receipt thereof the Swingline Lender will deliver to such Lender a certificate evidencing such participation dated the date of receipt of such funds and for such amount. Whenever, at any time after the Swingline Lender has received from any Lender such Lender's participating interest in a Swingline Advance, the Swingline Lender receives any payment on account thereof, the Swingline Lender will distribute to such Lender its participating interest in such amount (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender's participating interest was outstanding and funded).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything to the contrary contained in this <u>Section</u> <u>2.21</u>, the Swingline Lender shall not be obligated to make any Swingline Advance at a time when any other Lender is a Defaulting Lender, unless the Swingline Lender has entered into arrangements (which may include the delivery of cash collateral) with the Borrower or such Defaulting Lender which are satisfactory to the Swingline Lender to eliminate the Swingline Lender's Fronting Exposure (after giving effect to <u>Section</u> <u>2.22(a)(iii)</u>) with respect to any such Defaulting Lender.

**Section 2.22. <u>Defaulting Lenders</u>**.

&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 in this Agreement, if any Lender becomes a Defaulting Lender, then, until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by Applicable Law:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) That Defaulting Lender's right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in <u>Section</u> <u>13.1</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any payment of principal, interest, fees or other amounts received by the Administrative Agent for the account of that Defaulting Lender (whether voluntary or mandatory, at maturity, or otherwise), shall be applied at such time or times as may be determined by the Administrative Agent as follows: *first*, to the payment of any amounts owing by that Defaulting Lender to the Administrative Agent hereunder; *second*, to the payment of any amounts owing by that Defaulting Lender to the Swingline Lender hereunder; *third*, if so determined by the Administrative Agent or requested by the Swingline Lender, to be held as cash collateral for future funding obligations of that Defaulting Lender of any participation in any Swingline Advance; *fourth*, as the Borrower may request (so long as no Unmatured Termination Event or Termination Event exists), to the funding of any Advance in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Administrative Agent; *fifth*, if so determined by the Administrative Agent and the Borrower, to be held in a non-interest bearing deposit account and released in order to satisfy obligations of that Defaulting Lender to fund Advances under this Agreement; *sixth*, to the payment of any amounts owing to the Lenders or the Swingline Lender as a result of any judgment of a court of competent jurisdiction obtained by any Lender or the Swingline Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; *seventh*, so long as no Unmatured Termination Event or Termination Event exists, to the payment of any amounts owing to the Borrower as a result of any judgment of a court of competent jurisdiction obtained by such Borrower against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and *eighth*, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction; *provided* that, if such payment is a payment of the principal amount of any Advances or funded participations in Swingline Advances in respect of which that Defaulting Lender has not fully funded its appropriate share, such payment shall be applied solely to pay the Advances of, and funded participations in Swingline Advances owed to, all non-Defaulting Lenders on a *pro rata* basis prior to being applied to the payment of any Advances of, or funded participations in Swingline Advances owed to, that Defaulting Lender. Any payments, prepayments or other amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a Defaulting Lender or to post cash collateral pursuant to this <u>Section</u> <u>2.22</u> shall be deemed paid to and redirected by that Defaulting Lender, and each Lender irrevocably consents hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) During any period in which there is a Defaulting Lender, for purposes of computing the amount of the obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Swingline Advances pursuant to <u>Section</u> <u>2.21</u>, the "Pro Rata Share" of each non-Defaulting Lender shall be computed without giving effect to the Commitment of that Defaulting Lender; *provided* that, each such reallocation shall be given effect only if the aggregate obligation of each non-Defaulting Lender to acquire, refinance or fund participations in Swingline Advances shall not exceed the positive difference, if any, of (A) the Commitment of that non-Defaulting Lender *minus* (B) the aggregate outstanding principal amount of the Advances of that Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Following written demand by the Swingline Lender or the Administrative Agent from time to time, the Borrower shall promptly prepay Swingline Advances in an amount of all Fronting Exposure with respect to the Swingline Lender (after giving effect to clause (iii) 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;(v) For any period during which that Lender is a Defaulting Lender, that Defaulting Lender shall not be entitled to receive any Commitment Fee for any period during which that Lender is a Defaulting Lender (and the Borrower shall not be required to pay any such fee that otherwise would have been required to have been paid to such Defaulting 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;(b) If the Administrative Agent and the Swingline Lender agree in writing in their sole discretion that a Defaulting Lender should no longer be deemed to be a Defaulting Lender, the Administrative Agent will so notify the parties hereto, whereupon as of the effective date specified in such notice and subject to any conditions set forth therein (which may include arrangements with respect to any cash collateral), that Lender will, to the extent applicable, purchase that portion of outstanding Advances of the other Lenders or take such other actions as the Administrative Agent may determine to be necessary to cause the Advances to be held on a *pro rata* basis by the Lenders in accordance with their Pro Rata Shares (without giving effect to <u>Section</u> <u>2.22(a)(iii)</u> above), whereupon that Lender will cease to be a Defaulting Lender; *provided* that, no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting Lender; and *provided further* that, except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender's having been a Defaulting Lender. For the avoidance of doubt, no Breakage Costs shall be payable to any Lender under this Section 2.22(b).

**Section 2.23. <u>Mitigation Obligations; Replacement of Lender</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Designation of a Different Lending Office</u>. If any Lender (other than (i) the Administrative Agent or (ii) any Lender which is administered by the Administrative Agent or an Affiliate of the Administrative Agent) requests compensation under <u>Section</u> <u>2.14</u>, or requires the Borrower to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>2.15</u>, then such Lender shall (at the request of the Borrower) use reasonable efforts to designate a different lending office for funding or booking its Advances hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to <u>Section</u> <u>2.14</u> or <u>2.15</u>, as the case may be, in the future, and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Replacement of Lenders</u>. If any Lender (other than (i) the Administrative Agent or (ii) any Lender which is administered by the Administrative Agent or an Affiliate of the Administrative Agent) requests compensation under <u>Section</u> <u>2.14</u>, or if the Borrower is required to pay any Indemnified Taxes or additional amounts to any Lender or any Governmental Authority for the account of any Lender pursuant to <u>Section</u> <u>2.15</u> and, in each case, such Lender has declined or is unable to designate a different lending office in accordance with <u>Section</u> <u>2.23(a)</u>, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, <u>Section</u> <u>13.16</u>), all of its interests, rights (other than its existing rights to payments pursuant to <u>Section</u> <u>2.14</u> or <u>Section</u> <u>2.15</u>) and obligations under this Agreement and the related Transaction Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); <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;(i) the Borrower shall have paid to the Administrative Agent the assignment fee (if any) specified in <u>Section</u> <u>13.16</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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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 Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of any such assignment resulting from a claim for compensation under <u>Section</u> <u>2.14</u> or payments required to be made pursuant to <u>Section</u> <u>2.15</u>, such assignment will result in a reduction in such compensation or payments thereafter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) such assignment does not conflict with Applicable Law.

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply.

**ARTICLE III.** 

**CONDITIONS TO CLOSING ADVANCES** 

**Section 3.1. <u>Conditions to Closing and Initial Advance</u>**.

No Lender shall be obligated to make any Advance hereunder on the occasion of the initial Advance, and the Lenders, the Administrative Agent, the Lender Agents, the Collateral Agent and the Collateral Custodian shall not be obligated to take, fulfill or perform any other action hereunder, until the following conditions have been satisfied or waived in writing by the Administrative Agent (in each case in its sole and absolute discretion):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement, the Contribution Agreement, the Securities Account Control Agreement, the Wells Fargo Fee Letter and the CA & CC Fee Letter shall have been duly executed by, and delivered to, the parties thereto, and the Administrative Agent and each Lender Agent shall have received such other documents, instruments, agreements and legal opinions as the Administrative Agent and each Lender Agent shall reasonably request in connection with the transactions contemplated by this Agreement, including, without limitation, all those specified in the schedule of condition precedent documents attached hereto as <u>Schedule</u> <u>I</u>, each in form and substance satisfactory to the Administrative Agent and each Lender 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;(b) The Borrower shall have paid all fees required and documented to be paid, including all fees required hereunder and under the applicable Lender Fee Letters and, without duplication of <u>Section</u> <u>2.13(e)</u>, shall have reimbursed the Lenders, the Administrative Agent and each Lender Agent for all fees, costs and expenses of closing the transactions contemplated hereunder and under the other Transaction Documents, including the reasonable and documented attorney fees and any other legal and document preparation costs incurred by the Lenders, the Administrative Agent and each Lender Agent; <u>provided</u> that payment of such attorney fees and any other legal and document preparation costs shall not be due at Closing unless an invoice has been received by the Borrower two (2) Business Days in advance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any and all information submitted pursuant to this Agreement and the other Transaction Documents to each Lender, Lender Agent and the Administrative Agent by the Borrower or the Collateral Manager or any of their Affiliates is true, accurate and complete in all material respects and not misleading in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender Agent shall have received (x) all documentation and other information requested by such Lender Agent in its sole discretion and/or required by regulatory authorities with respect to the Borrower, the Equityholder and the Collateral Manager under applicable "know your customer" and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act, all in form and substance reasonably satisfactory to each Lender Agent and (y) if the Borrower qualifies as a "legal entity customer" under the Beneficial Ownership Regulation, a Beneficial Ownership Certification in relation to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The results of each Lender's financial, legal, tax and business due diligence relating to the Borrower, the Collateral Manager, the Equityholder, the Eligible Loans and the transactions contemplated hereunder are satisfactory to each Lender (which, for the avoidance of doubt, shall include the review of the Equityholder's governing documents) (it being understood that this clause (e) shall be deemed satisfied upon the occurrence of the Closing Date);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Administrative Agent and each Lender Agent shall have received (i) satisfactory evidence that the Borrower, the Collateral Manager and the Equityholder have obtained all required consents and approvals of all Persons, including all requisite Governmental Authorities, to the execution, delivery and performance of this Agreement and the other Transaction Documents to which each is a party and the consummation of the transactions contemplated hereby or thereby or (ii) an Officer's Certificate from each of the Borrower, the Collateral Manager and the Equityholder in form and substance satisfactory to the Administrative Agent and each Lender Agent affirming that no such consents or approvals are required; it being understood that the acceptance of such evidence or Officer's Certificate shall in no way limit the recourse of the Administrative Agent, each Lender Agent or any Secured Party against the Collateral Manager, the Borrower or the Equityholder for a breach of such Person's representation or warranty that all such consents and approvals have, in fact, been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower, the Collateral Manager and the Equityholder shall each be in compliance in all material respects with all Applicable Law and shall have delivered to the Collateral Agent, the Administrative Agent and each Lender Agent as to this and other closing matters a certification in the form of <u>Exhibits</u> <u>E</u><u>-1</u>, <u>E</u><u>-2</u> and <u>E</u><u>-3</u>, as applicable;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Borrower and the Collateral Manager shall have delivered to the Collateral Agent, the Administrative Agent and each Lender Agent duly executed powers of attorney in the form of <u>Exhibits</u> <u>F</u><u>-1</u> and <u>F</u><u>-2</u>, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower and the Collateral Manager shall each have delivered to the Collateral Agent, the Administrative Agent and each Lender Agent a certificate as to solvency in the form of <u>Exhibits</u> <u>D</u><u>-1</u>, <u>D</u><u>-2</u> and <u>D</u><u>-3</u>, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) As of the Closing Date, the Equityholder has received Capital Commitments in an aggregate amount greater than or equal to $300,000,000.

By its execution and delivery of this Agreement, each of the Borrower and the Collateral Manager hereby certifies that each of the conditions precedent to the effectiveness of this Agreement set forth in this <u>Section</u> <u>3.1</u> have been satisfied; *provided* that, with respect to conditions precedent that expressly require the consent or approval of the Administrative Agent or another party (other than the Borrower or the Collateral Manager), the foregoing certification is only to the knowledge of the Borrower and the Collateral Manager, as applicable, with respect to such consents or approvals.

**Section 3.2. <u>Conditions Precedent to All Advances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Advance and Swingline Advance under this Agreement, each reduction in Advances Outstanding pursuant to <u>Section</u> <u>2.3(b)</u> and each reinvestment of Principal Collections pursuant to <u>Section</u> <u>2.8(b)</u> (each, a "<u>Transaction</u>") shall be subject to the further conditions precedent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with respect to any Advance and Swingline Advance, the Borrower or the Collateral Manager, as the case may be, shall have delivered a Borrowing Notice in the form of <u>Exhibit</u> <u>A</u><u>-1</u>, a Borrowing Base Certificate, a Loan Tape, if applicable, a Collateral Management Report to the Administrative Agent (with a copy to the Collateral Custodian and the Collateral Agent) and an Approval Notice (for any Loan added to the Collateral on the related Funding Date) in accordance with <u>Section</u> <u>2.2</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;(ii) with respect to any reduction in Advances Outstanding pursuant to <u>Section</u> <u>2.3(b)</u>, the Borrower or the Collateral Manager, as the case may be, shall have delivered to the Administrative Agent (with a copy to the Collateral Agent and the Collateral Custodian), one (1) Business Day prior to any reduction of Advances Outstanding a Repayment Notice in the form of <u>Exhibit</u> <u>A</u><u>-2</u> and a Borrowing Base Certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&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) with respect to any reinvestment of Principal Collections permitted by <u>Section</u> <u>2.8(b)</u>, the conditions set forth in <u>Section</u> <u>2.8(b)</u> are satisfied; 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;(b) On the date of such Transaction each of the following (and in the case of any reduction of Advances Outstanding, each of clauses (ii), (vii) and (ix) only) shall be true and correct and the Borrower and the Collateral Manager shall have certified in the related Borrowing Notice that all conditions precedent to the requested Advance have been satisfied and shall thereby be deemed to have certified that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The representations and warranties contained in <u>Section</u> <u>4.1</u>, <u>Section</u> <u>4.2</u> and <u>Section</u> <u>4.3</u> are true and correct in all material respects (or, if qualified by materiality or Material Adverse Effect or any similar term, in all respects) on and as of such day as though made on and as of such day and shall be deemed to have been made on such day (other than any representation and warranty that is made as of a specific 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;(ii) No event has occurred and is continuing, or would result from such Transaction or from the application of proceeds thereof, that constitutes a Termination Event or Unmatured Termination 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;(iii) No event has occurred and is continuing, or would result from such Transaction or from the application of proceeds thereof, which constitutes a Collateral Manager Default or any event which, if it continues uncured, will, with notice or lapse of time, constitute a Collateral Manager 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;(iv) Since the Closing Date, no material adverse change has occurred in the ability of the Collateral Manager or the Borrower to perform its obligations under any Transaction 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;(v) No Liens (other than Permitted Liens) exist in respect of Taxes which are prior to the lien of the Collateral Agent on the Eligible Loans to be pledged on such Funding Date or the date of each reinvestment of Principal Collections in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) All terms and conditions required to be satisfied in connection with the assignment of each Eligible Loan being pledged hereunder on such Funding Date (and the Related Security related thereto), including, without limitation, the perfection of the Borrower's interests therein, shall have been satisfied in full, and all filings (including, without limitation, UCC filings) required to be made by any Person and all actions required to be taken or performed by any Person in any jurisdiction to give the Collateral Agent, for the benefit of the Secured Parties, a first priority perfected security interest (subject only to Permitted Liens) in such Eligible Loans and the Related Security related thereto and the proceeds thereof shall have been made, taken or performed;

&nbsp;&nbsp;&nbsp;&nbsp;&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) On and as of such day, after giving effect to such Transaction, the Availability shall be greater than or equal to $0;

&nbsp;&nbsp;&nbsp;&nbsp;&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) On and as of such day, the Borrower and the Collateral Manager each has performed all of the covenants and agreements contained in this Agreement to be performed by such Person on or prior to such day;

&nbsp;&nbsp;&nbsp;&nbsp;&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) No Applicable Law shall prohibit or enjoin the making of such Advance or Swingline Advance by any Lender, the proposed reduction of Advances Outstanding, the proposed reinvestment of Principal Collections or any other transaction contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Reserved];

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Reinvestment Period End Date or the Termination Date shall not have occurred;

&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;(f) The Borrower and Collateral Manager shall have delivered to the Administrative Agent all reports required to be delivered as of the date of such Transaction including, without limitation, all deliveries required by <u>Section</u> <u>2.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower shall have paid all fees required and documented to be paid as of such date, including all fees required hereunder and under the applicable Lender Fee Letters and, without duplication of <u>Section</u> <u>2.13(e)</u>, shall have reimbursed the Lenders, the Administrative Agent and each Lender Agent for all fees, costs and expenses of closing the transactions contemplated hereunder and under the other Transaction Documents, including the reasonable attorney fees and any other legal and document preparation costs incurred by the Lenders, the Administrative Agent and each Lender Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In connection with Advances, Swingline Advances and reinvestments of Principal Collections, the Borrower shall have received a copy of an Approval Notice, executed by the Administrative Agent, evidencing the approval of the Administrative Agent, in its sole discretion in accordance with clause (a) of the definition of "Eligible Loan," of the Loans to be added to the Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Borrower shall have delivered to the Administrative Agent an Officer's Certificate (which may be part of the Borrowing Notice) in form and substance reasonably satisfactory to the Administrative Agent and each Lender Agent certifying that each of the foregoing conditions precedent has been satisfied.

The failure of the Borrower to satisfy any of the foregoing conditions precedent in respect of any Advance or Swingline Advance shall give rise to a right of the Administrative Agent and the applicable Lender Agent, which right may be exercised at any time on the demand of the applicable Lender Agent, to rescind the related Advance or Swingline Advance, as applicable, and direct the Borrower to pay to the Administrative Agent for the benefit of the applicable Lender an amount equal to the Advances or Swingline Advance made during any such time that any of the foregoing conditions precedent were not satisfied.

**Section 3.3. <u>Advances Do Not Constitute a Waiver</u>**.

No Advance or Swingline Advance made hereunder shall constitute a waiver of any condition to any Lender's obligation to make such an advance unless such waiver is in writing and executed by such Lender.

**Section 3.4. <u>Custodianship; Transfer of</u> <u>Loans and Permitted Investments</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Collateral Custodian shall hold all Certificated Securities (whether Loans or Permitted Investments) and Instruments in physical form at the office of the Collateral Custodian in St. Paul, Minnesota at the address of the Collateral Custodian located at 1505 Energy Park Drive, St. Paul, MN 55108. Any successor Collateral Custodian shall be a state or national bank or trust company which is not an Affiliate of the Borrower and which is a Qualified Institution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each time that the Borrower (or the Collateral Manager on behalf of the Borrower) shall direct or cause the acquisition of any Loan or Permitted Investment, the Borrower shall (or the Collateral Manager on behalf of the Borrower), if such Loan or Permitted Investment has not already been transferred in accordance with its Underlying Instruments (including obtaining any necessary consents) to the Collection Account, cause the transfer of such Loan or Permitted Investment in accordance with its Underlying Instruments (including obtaining any necessary consents) to the Collateral Custodian to be held in the Collection Account (in the case of Permitted Investments) for the benefit of the Collateral Agent, on behalf of the Secured Parties, in accordance with the terms of this Agreement. The security interest of the Collateral Agent, on behalf of the Secured Parties, in the funds or other property utilized in connection with such acquisition shall, immediately and without further action on the part of the Collateral Agent, be released. The security interest of the Collateral Agent, for the benefit of the Secured Parties shall nevertheless come into existence and continue in the Loan or Permitted Investment so acquired, including all rights of the Borrower in and to any contracts related to and proceeds of such Loan or Permitted Investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower (or the Collateral Manager on behalf of the Borrower) shall cause all Loans or Permitted Investments acquired by the Borrower to be transferred to the Collateral Custodian for credit to the appropriate Account (in the case of Permitted Investments), in each case for the benefit of the Collateral Agent, and shall cause all Loans and Permitted Investments acquired by the Borrower to be delivered to the Collateral Custodian for the benefit of the Collateral Agent by one of the following means (and shall take any and all other actions necessary to create in favor of the Collateral Agent a valid, perfected, first priority security interest in each Loan and Permitted Investment granted to the Collateral Agent under laws and regulations (including without limitation Articles 8 and 9 of the UCC, as applicable) in effect at the time of such grant):

&nbsp;&nbsp;&nbsp;&nbsp;&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 an Instrument or a Certificated Security represented by a Security Certificate in registered form by having it specially Indorsed to the Collateral Agent or in blank by an effective Indorsement or registered in the name of the Collateral Agent and by (A) delivering such Instrument or Security Certificate to the Collateral Custodian in St. Paul, Minnesota and (B) causing the Collateral Custodian to maintain (on behalf of the Collateral Agent) continuous possession of such Instrument or Security Certificate in St. Paul, Minnesota;

&nbsp;&nbsp;&nbsp;&nbsp;&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 an Uncertificated Security that is not credited to an Account, by (A) causing the Collateral Agent to become the registered owner of such Uncertificated Security and (B) causing such registration to remain 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;(iii) in the case of any Security Entitlement, by causing the Collateral Agent to have control over such Security Entitlement pursuant to the Securities Account Control Agreement; 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;(iv) in the case of general intangibles (including any Loan or Permitted Investment not evidenced by an Instrument) by filing, maintaining and continuing the effectiveness of, a financing statement naming the Borrower as debtor and the Collateral Agent as secured party and describing the Loan or Permitted Investment (as the case may be) as the collateral at the filing office of the Secretary of State of the State of Delaware (it being agreed that an "all assets" financing statement will be sufficiently descriptive for this clause (iv)).

**ARTICLE IV.** 

**REPRESENTATIONS AND WARRANTIES** 

**Section 4.1. <u>Representations and Warranties of the Borrower</u>**.

The Borrower represents and warrants as follows as of each Measurement Date (exclusive of clauses (vi) and (vii) therein), and as of each other date provided under this Agreement or the other Transaction Documents on which such representations and warranties are required to be (or deemed to be) made (unless a specific date is specified below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization and Good Standing</u>. The Borrower has been duly formed, and is validly existing as a limited liability company in good standing, under the laws of the State of Delaware, with all requisite limited liability company power and authority to own or lease its properties and conduct its business as such business is presently conducted, and had at all relevant times, and now has all necessary power, authority and legal right to acquire, own and sell the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Qualification</u>. The Borrower is duly qualified to do business as a limited liability company, is in good standing as a limited liability company, and has obtained all necessary qualifications, licenses and approvals, in all jurisdictions in which the ownership or lease of its property or the conduct of its business requires such qualifications, licenses or approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Power and Authority; Due Authorization; Execution and Delivery</u>. The Borrower (i) has all necessary limited liability company power, authority and legal right to (a) execute and deliver this Agreement and the other Transaction Documents to which it is a party, and (b) carry out the terms of the Transaction Documents to which it is a party, and (ii) has duly authorized by all necessary limited liability company action, the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party and the pledge and assignment of a security interest in the Collateral on the terms and conditions herein provided. This Agreement and each other Transaction Document to which the Borrower is a party have been duly executed and delivered by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Binding Obligation</u>. This Agreement and each other Transaction Document to which the Borrower is a party constitutes a legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with its respective terms, except as such enforceability may be limited by Insolvency Laws and general principles of equity (whether considered in a suit at law or in equity).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Violation</u>. The consummation of the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the Borrower's organizational documents or any Contractual Obligation of the Borrower, (ii) result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Borrower's properties pursuant to the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Proceedings</u>. There is no litigation or administrative proceeding or investigation pending or, to the knowledge of the Borrower, threatened in writing against the Borrower or Borrower's properties, before any Governmental Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which the Borrower is a party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document to which the Borrower is a party or (iii) seeking any determination or ruling that could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>All Consents Required</u>. All approvals, authorizations, consents, orders, licenses or other actions of any Person or of any Governmental Authority (if any) required for the due execution, delivery and performance by the Borrower of this Agreement and any other Transaction Document to which the Borrower is a party have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Selection Procedures</u>. In selecting the Loans to be pledged pursuant to this Agreement, no selection procedures were employed which are intended to be adverse to the interests of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Solvency</u>. The Borrower is not the subject of any Insolvency Proceedings or Insolvency Event. The transactions under this Agreement and any other Transaction Document to which the Borrower is a party do not and will not render the Borrower not Solvent. The Borrower is paying its debts as they become due (subject to any applicable grace period); and the Borrower, after giving effect to the transactions contemplated hereby, will have adequate capital to conduct its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Pledge of Collateral</u>. Except as otherwise expressly permitted by the terms of this Agreement, no item of Collateral has been sold, transferred, assigned or pledged by the Borrower to any Person, other than as contemplated by <u>Article</u> <u>II</u> and the pledge of such Collateral to the Collateral Agent, for the benefit of the Secured Parties, pursuant to the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>No Injunctions</u>. No injunction, writ, restraining order or other order of any nature adversely affects the Borrower's performance of its obligations under this Agreement or any Transaction Document to which the Borrower is a party.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Taxes</u>. The Borrower has filed or caused to be filed all material Tax returns that are required to be filed by it and has paid or made adequate provisions for the payment of all material Taxes and all assessments made against it or any of its property, except Taxes the validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of the Borrower. No Tax lien (other than a Permitted Lien in respect of Taxes) has been filed and, to the Borrower's knowledge, no claim is being asserted, with respect to any such Tax, fee, assessment or other charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Exchange Act Compliance; Regulations T, U and X</u>. None of the transactions contemplated herein or in the other Transaction Documents (including, without limitation, the use of the proceeds from the pledge of the Collateral) will violate or result in a violation of Section 7 of the Exchange Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System. The Borrower does not own or intend to carry or purchase, and no proceeds from the Advances will be used to carry or purchase, any Margin Stock or to extend "purpose credit" within the meaning of Regulation U. No proceeds from the Advances will be used to purchase Loans from a broker-dealer Affiliate of any Lender identified in writing to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Security Interest</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;(i) This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Collateral in favor of the Collateral Agent, on behalf of the Secured Parties, which security interest is prior to all other Liens (except for Permitted Liens), and is enforceable as such against creditors of and purchasers from the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Collateral is comprised of "instruments," "security entitlements," "general intangibles," "tangible chattel paper," "accounts," "certificated securities," "uncertificated securities" or "securities accounts" (each as defined in the applicable UCC) and/or such other category of collateral under the applicable UCC as to which the Borrower has complied with its obligations under this <u>Section</u> <u>4.1(o)</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;(iii) with respect to Collateral that constitute "security entitlements":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) all of such security entitlements have been credited to one of the Accounts and the securities intermediary for each Account has agreed to treat all assets credited to such Account as "financial assets" within the meaning of the applicable UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Borrower has taken all steps necessary to cause the securities intermediary to identify in its records the Borrower as the Person having a security entitlement against the securities intermediary in each of the Accounts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Accounts are not in the name of any Person other than the Borrower, subject to the lien of the Collateral Agent, for the benefit of the Secured Parties. The securities intermediary of any Account which is a "securities account" under the UCC has agreed to comply with the entitlement orders and instructions of the Borrower, the Collateral Manager and the Collateral Agent (acting at the direction of the Administrative

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Agent) in accordance with the Transaction Documents, including causing cash to be invested in Permitted Investments; *provided* that, upon the delivery of a notice of exclusive control under the Securities Account Control Agreement by the Collateral Agent (acting at the direction of the Administrative Agent) following a Termination Event, the securities intermediary has agreed to only follow the entitlement orders and instructions of the Collateral Agent, on behalf of the Secured Parties, including with respect to the investment of cash in Permitted Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all Accounts constitute "securities accounts" as defined in the applicable UCC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower owns and has good and marketable title to the Collateral free and clear of any Lien (other than Permitted Liens) of 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;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Borrower has received all consents and approvals required by the terms of any Loan to the granting of a security interest in the Loans hereunder to the Collateral Agent, on behalf of the Secured 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;(vii) the Borrower has caused the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in the Collateral and that portion of the Loans in which a security interest may be perfected by filing granted to the Collateral Agent, on behalf 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;(viii) other than the security interest granted to the Collateral Agent, on behalf of the Secured Parties, pursuant to this Agreement, the Borrower has not pledged, assigned, sold, granted a security interest in or otherwise conveyed any of the Collateral. The Borrower has not authorized the filing of and is not aware of any financing statements against the Borrower that include a description of collateral covering the Collateral other than any financing statement (A) relating to the closing of a Permitted Securitization or a Permitted Refinancing contemplated by <u>Section</u> <u>2.18</u>, or (B) that has been terminated and/or fully and validly assigned to the Collateral Agent on or prior to the date hereof. The Borrower is not aware of the filing of any judgment or Tax lien filings (other than any Permitted Lien) against the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all original executed copies of each underlying promissory note or copies of each Loan Register, as applicable, that constitute or evidence each Loan has been, or subject to the delivery requirements contained herein, will be delivered to the Collateral Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) other than in the case of Noteless Loans, the Borrower has received, or subject to the delivery requirements contained herein will receive, a written acknowledgment from the Collateral Custodian that the Collateral Custodian or its bailee is holding the underlying promissory notes that constitute or evidence the Loans solely on behalf of the Collateral Agent, for the benefit of the Secured Parties;

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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;(xi) none of the underlying promissory notes, or Loan Registers, as applicable, that constitute or evidence the Loans has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Collateral Agent, on behalf of the Secured 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;(xii) with respect to Collateral that constitutes a Certificated Security, such Certificated Security has been delivered to the Collateral Custodian on behalf of the Collateral Agent, for the benefit of the Secured Parties, and, if in registered form, has been specially Indorsed to the Collateral Agent, for the benefit of the Secured Parties, or in blank by an effective Indorsement or has been registered in the name of the Collateral Agent, for the benefit of the Secured Parties, upon original issue or registration of transfer by the Borrower of such Certificated Security; 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;(xiii) with respect to Collateral that constitutes an Uncertificated Security that is not credited to an Account, the Borrower has caused the issuer of such Uncertificated Security to register the Collateral Agent, on behalf of the Secured Parties, as the registered owner of such Uncertificated Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Reports Accurate</u>. All Collateral Manager's Certificates or Collateral Management Reports (if prepared by the Borrower or to the extent that information contained therein is supplied by the Borrower) and Borrowing Notices, Reinvestment Notices, Repayment Notices, Borrowing Base Certificates and other written or electronic information, exhibits, financial statements, documents, books, records or reports (exclusive of any projections) furnished by the Borrower to the Administrative Agent, the Collateral Agent, each Lender Agent or any Lender in connection with this Agreement are true, complete and correct in all material respects and no such Collateral Manager's Certificate, Collateral Management Report, Borrowing Notice, Reinvestment Notices, Repayment Notice, Borrowing Base Certificate or other written or electronic information, exhibit, financial statement, document, book, record or report (exclusive of any projections) omits to state a material fact or any fact necessary to make the statements contained therein not misleading; *provided* that, solely with respect to written or electronic information furnished by the Borrower which was provided to the Borrower from an Obligor with respect to a Loan, such information need only be true, complete and correct in all material respects to the knowledge of the Borrower; *provided further* that, the foregoing proviso shall not apply to any information presented in a Collateral Manager's Certificate, Collateral Management Report, Borrowing Notice, Reinvestment Notices, Repayment Notice or Borrowing Base Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Location of Offices</u>. The Borrower's location (within the meaning of Article 9 of the UCC) is the State of Delaware. The office where the Borrower keeps all the Records is at the address of the Borrower referred to in <u>Section</u> <u>13.2</u> hereof (or at such other locations as to which the notice and other requirements specified in <u>Section</u> <u>5.2(g)</u> shall have been satisfied). The Borrower's Federal Employee Identification Number is correctly set forth on <u>Exhibit</u> <u>E</u><u>-1</u>. The Borrower has not changed its name (whether by amendment of its organizational documents, by reorganization or otherwise) or its jurisdiction of organization and has not changed its location within the four (4) months preceding the Closing Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Collection Account</u>. The Collection Account is the only account to which Collections on the Collateral are sent. The Borrower has not granted any Person other than the Collateral Agent, for the benefit of the Secured Parties, an interest in the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Tradenames</u>. The Borrower has no trade names, fictitious names, assumed names or "doing business as" names or other names under which it has done or is doing business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Value Given</u>. The Borrower shall have given reasonably equivalent value to the Contributor or third party seller of Collateral in consideration for the transfer to the Borrower of the Collateral, no such transfer shall have been made for or on account of an antecedent debt, and no such transfer is or may be voidable or subject to avoidance under any section of the Bankruptcy Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Accounting</u>. The Borrower accounts for its interests in the Collateral as assets on its balance sheet for financial accounting purposes, in each case consistent with GAAP and with the requirements set forth therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Special Purpose Entity</u>. The Borrower acknowledges that the Administrative Agent, the Lender Agents and the Lenders are entering into the transactions contemplated by this Agreement in reliance upon the Borrower's identity as a legal entity that is separate from the Equityholder. Therefore, since the date of the Borrower's formation and from and after the date of execution and delivery of this Agreement, the Borrower shall take all reasonable steps to maintain the Borrower's separate legal identity and to make it manifest to third parties that the Borrower is an entity with assets and liabilities distinct from those of the Equityholder and not just a division thereof. Without limiting the generality of the foregoing and in addition to the other covenants set forth herein, since its formation, the Borrower has not and the Borrower will not hold itself out to third parties as liable for the debts of the Equityholder. In addition, since its formation, the Borrower has and 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;(i) do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a Delaware limited liability company in good standing and its rights (charter and statutory) and franchises, obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of the Borrower Operating Agreement and any agreement to which the Borrower is a party, and observe all applicable procedures and provisions required by the Borrower Operating Agreement and the laws of the State of Delaware;

&nbsp;&nbsp;&nbsp;&nbsp;&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) not amend, alter, waive, change or repeal (A) its certificate of formation; (B) certain definitions specified in the Borrower Operating Agreement; or (C) certain sections specified in the Borrower Operating Agreement without the written consent of the Independent Manager (and, if a modification or amendment would cause the Borrower Operating Agreement to be inconsistent with this Agreement, the consent of the Administrative 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;(iii) maintain its own bank accounts and correct and complete financial and other entity records, accounts and books of account separate and distinct from those of any other Person, not commingle its records, accounts, books of account, bank accounts and other assets with the organizational or other records, accounts, books of account, bank accounts or other assets of any other Person and cause such records, accounts, books of account and bank accounts to reflect the separate existence of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) act solely in its own name and through its duly authorized member, special member, Collateral Manager, Independent Manager, officers or agents in the conduct of its business, prepare all of its correspondence in the Borrower's name, hold itself out to the public as a legal entity separate and distinct from any other Person, conduct its business solely in its own name so as not to mislead others as to the identity of the entity with which they are concerned, correct any misunderstanding regarding its separate identity known to the Borrower or its members, Collateral Manager or special member, refrain from engaging in any activity that compromises the separate legal identity of the Borrower, and strictly comply with all organizational and statutory 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) hold such meetings (or act by written action in lieu of meetings) and take such actions as may be necessary to authorize each of its material actions as may be required by applicable law, the Borrower Operating Agreement, this Agreement and any other agreement to which the Borrower is a party and shall maintain any of its minutes or written consents of such actions 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;&nbsp;&nbsp;&nbsp;&nbsp;(vi) file or cause to be filed its own tax and information returns separate from those of any other Person, if any, as may be required of the Borrower under applicable federal, state and local law, and pay any taxes solely out of its own funds so required to be paid under applicable law from its own 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;(vii) not commingle its funds or assets with the funds or assets 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;&nbsp;&nbsp;&nbsp;&nbsp;(viii) segregate and separately maintain (or cause to be maintained) its funds and assets as identifiable funds and assets held in its name (except, with respect to holding funds or assets in its name, to the extent that such funds or assets are required under this Agreement to be held in an account in the name of a servicer, custodian or trustee) and with its own tax identification number, if any, in such a manner that it is not costly or difficult to segregate, ascertain or identify its individual funds and assets from the funds and assets of any other Person, which funds and assets shall at all times be held by or on behalf of the Borrower and used only for the business of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) cause (A) the consolidated or combined financial statements, if any, which consolidate or combine the assets and earnings of the Equityholder or Affiliate of the Equityholder or the Borrower with those of the Borrower to contain a footnote indicating the separate existence of the Borrower and its assets and liabilities, including that the assets are owned by the Borrower and that the assets and liabilities of the Borrower are being included only to comply with generally accepted accounting principles, and (B) not permit the consolidated or combined financial statements, if any, which consolidate or combine the assets and earnings of the Equityholder or Affiliate of the Equityholder or the Borrower with those of the Borrower to state that the assets of the Borrower are or will be available to creditors of the Equityholder or any Affiliate of the Equityholder (other than the Borrower) or the Borrower and shall maintain its own separate balance sheet;

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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;(x) maintain an arm's-length relationship with each of its Affiliates and the Equityholder, the special member, the Collateral Manager, the Independent Manager and their respective Affiliates, not enter into any transaction, contract or agreement or amendment thereof with any of its Affiliates or the Equityholder, the special member, the Collateral Manager, the Independent Manager or their respective Affiliates except in the ordinary course of business and upon terms and conditions that are commercially reasonable, intrinsically fair and substantially similar to those that would be available on an arm's-length basis with third parties (except for capital contributions and distributions permitted under the terms of the Borrower Operating Agreement and properly reflected on the Borrower's books and records), and transact all business with each of its Affiliates and the Equityholder, the special member, the Collateral Manager, the Independent Manager and their respective Affiliates pursuant to enforceable agreements with material terms established at the inception that will not be amendable except with the consent of each of the parties to such 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;(xi) to the extent that the Borrower leases premises from the Equityholder, the Collateral Manager, the special member or their respective Affiliates, pay appropriate, fair and reasonable compensation or rental to the lessor;

&nbsp;&nbsp;&nbsp;&nbsp;&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) be directly responsible for the costs of its own outside legal, auditing and other similar services and pay its taxes, liabilities and operating expenses only out of its funds and not pay from its assets any obligations or indebtedness 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;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) pay solely from its own funds the salaries of its own employees, if any, and maintain a sufficient number of employees in light of its contemplated business operations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) pay from its own funds any compensation due to the Independent 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;&nbsp;&nbsp;&nbsp;&nbsp;(xv) pay compensation solely from its own funds to independent contractors for performing services or incurring expenses in connection with such services for the Borrower in an amount equal to the fair value of such services and expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&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) allocate fairly and reasonably between the Borrower and any other Person pursuant to a written agreement all expenses that are shared with such Person, including, without limitation, any overhead, rent, or other compensation paid for shared or leased office space;

&nbsp;&nbsp;&nbsp;&nbsp;&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) not act as an agent of the Equityholder, the special member, the Collateral Manager, the Independent Manager or their respective Affiliates;

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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;(xviii) not permit the Equityholder, the Independent Manager, the Collateral Manager or their respective Affiliates to act as an agent for the Borrower, except as specifically permitted by the Borrower Operating 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;(xix) not identify itself as a department or division of any other Person in order not (A) to mislead others as to the identity of the entity with which such other party is transacting business; or (B) to suggest that the Borrower is responsible for the debts 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;&nbsp;&nbsp;&nbsp;&nbsp;(xx) use stationery, invoices and checks bearing its own name that are separate 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) not be, become or hold itself out (or permit itself to be held out) as being liable for the debts or other obligations of any other Person, or hold out its credit (or permit its credit to be held out) as being available to satisfy the obligation 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxii) not pledge any property or assets of the Borrower (except to secure its own obligations as permitted by this Agreement), lend or advance any moneys (other than trade receivables in connection with the ordinary course of the Borrower's business) to, guarantee (directly or indirectly), endorse (other than the endorsement of negotiable instruments for collection or deposit in the ordinary course of business) or otherwise become contingently liable (directly or indirectly) for the obligations of, or acquire or assume any obligation or liability 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxiii) not form or acquire any subsidiary other than a Portfolio Subsidiary or acquire the obligations or securities of its managers, members 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxiv) not incur any debt, secured or unsecured, direct or contingent (including, without limitation, guaranteeing any obligation) other than its obligations under this Agreement; *provided* that the Borrower may incur unsecured debts and liabilities for trade payables and accrued expenses which are permitted pursuant to this Agreement and incurred in the ordinary course of its business that (A) are in amounts that are normal and reasonable under the circumstances, (B) are not evidenced by a promissory note, (C) are paid when due (unless being contested in good faith) and (D) not owed to the Equityholder, the Collateral Manager, the special member or their respective 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxv) maintain adequate capital for the normal obligations reasonably foreseeable in a business of the Borrower's size and character and in light of its proposed business operations and liabilities (provided that this clause shall not be deemed a commitment by the Equityholder or the special member to make 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;(xxvi) not engage, directly or indirectly, in any business other than as required or permitted under the Borrower Operating 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;(xxvii) not acquire or own any material assets other than Company Investments (as defined in the Borrower Operating Agreement) and other than as necessary or appropriate to comply with its obligations under this Agreement and the agreements incidental 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;(xxviii) properly account in the Borrower's books and financial records for any transactions entered into between the Borrower and the Equityholder, the special member, the Collateral Manager, the Independent Manager and their respective 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxix) not enter into any contract, except such contracts as are necessary to enable the Borrower to achieve its purposes as set forth in, or that are otherwise required or permitted by the Borrower Operating 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;(xxx) subject to the Borrower Operating Agreement, have at least one Independent Manager (who will also act as the special member, if necessary) at all times;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxxi) to the fullest extent permitted by applicable law and except as otherwise expressly provided elsewhere in this Agreement, not take or refrain from taking any act which would make it impossible to carry on the activities of the Borrower set forth in the Borrower Operating 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;(xxxii) except as expressly provided in this Agreement, not knowingly perform any act that would subject (A) the Equityholder, the special member or an Independent Manager to liabilities of the Borrower in any jurisdiction, or (B) the Borrower to taxation as a corporation under relevant provisions 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxxiii) except as expressly provided in the this Agreement, not (A) combine, consolidate or merge into or with any other Person, (B) convert the Borrower into an entity that is not a Delaware limited liability company, (C) reorganize or form the Borrower in a jurisdiction other than Delaware, (D) to the fullest extent permitted by applicable law, dissolve, liquidate, wind-up or transfer the ownership of substantially all of its assets or (E) divide into two (2) or more limited liability companies or other legal 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;(xxxiv) not enter into this Agreement or any other agreement with any intent to hinder, delay or defraud creditors of 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxxv) not permit the Borrower to be maintained or used to abuse creditors or to perpetuate a fraud, injury or injustice to creditors of any 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;&nbsp;&nbsp;&nbsp;&nbsp;(xxxvi) cause the Equityholder, the special member, the Collateral Manager, the Independent Manager, agents and other representatives of the Borrower, if any, to act at all times with respect to the Borrower in furtherance of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>No Adverse Agreements</u>. There are no agreements in effect adversely affecting the rights of the Borrower to make, or cause to be made, the grant of the security interest in the Collateral contemplated by <u>Article</u> <u>IX</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;(x) <u>Termination Event/Unmatured Termination Event</u>. No event has occurred which constitutes a Termination Event, and no event has occurred and is continuing which constitutes an Unmatured Termination Event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Collateral Management Standard</u>. Each of the Loans was underwritten or acquired and is being serviced in conformance with the Collateral Management Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Investment Company Act</u>. The Borrower is not, and is not controlled by, an "investment company" within the meaning of the 1940 Act or is exempt from the provisions of the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) <u>ERISA</u>. Except as would not reasonably be expected to have a Material Adverse Effect on the Borrower, the present value of all benefits vested under each "employee pension benefit plan," as such term is defined in Section 3(2) of ERISA, other than a Multiemployer Plan, that is subject to Title IV of ERISA or Section 412 of the Code and maintained by the Borrower or any ERISA Affiliate of the Borrower, or to which the Borrower or any ERISA Affiliate of the Borrower contributes or has an obligation to contribute, or has any liability (each, a "<u>Pension Plan</u>"), does not exceed the value of the assets of the Pension Plan allocable to such vested benefits (based on the value of such assets as of the last annual valuation date) determined in accordance with the assumptions for funding such Pension Plan pursuant to Sections 412 and 430 of the Code for the applicable plan year. (i) No (A) prohibited transactions (within the meaning of Section 406(a) or (b) of ERISA or Section 4975 of the Code) for which an exemption is not available or has not previously been obtained from the United States Department of Labor with respect to any employee benefit plan within the meaning of Section 3(3) of ERISA sponsored or maintained by the Borrower, (B) failure to meet the minimum funding standard as set forth in Section 302(a) of ERISA and Section 412(a) of the Code with respect to any Pension Plan, (C) withdrawal from a Pension Plan subject to Section 4063 of ERISA during a plan year in which the Borrower or an ERISA Affiliate of the Borrower was a "substantial employer" (as defined in Section 4001(a)(2) of ERISA), or a cessation of operations that is treated as a withdrawal under Section 4062(e) of ERISA or (D) Reportable Events have occurred with respect to any Pension Plans, and (ii) neither the Borrower nor any ERISA Affiliate of the Borrower has incurred any withdrawal liability with respect to any Multiemployer Plan, that, in any case of the foregoing, would reasonably be expected to subject the Borrower to a Material Adverse Effect. Except as would not reasonably be expected to have a Material Adverse Effect on the Borrower, no notice of intent to terminate a Pension Plan has been filed, nor has any Pension Plan been terminated under Section 4041(c) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to terminate, or appointed a trustee to administer a Pension Plan and no event has occurred or condition exists that would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) <u>Compliance with Law</u>. The Borrower has complied in all material respects with all Applicable Law to which it may be subject, and no item of Collateral contravenes any Applicable Law (including, without limitation, all applicable predatory and abusive lending laws, laws, rules and regulations relating to licensing, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Collections</u>. The Borrower acknowledges that all Collections received by it or its Affiliates with respect to the Collateral pledged hereunder are held and shall be held in trust for the benefit of the Secured Parties until deposited into the Collection Account within two (2) Business Days after receipt as required herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Set</u><u>-Off, etc</u>. No Loan has been compromised, adjusted, extended, satisfied, subordinated, rescinded, set-off or modified by the Borrower or the Obligor thereof, and no Collateral is subject to compromise, adjustment, extension, satisfaction, subordination, rescission, set-off, counterclaim, defense, abatement, suspension, deferment, deduction, reduction, termination or modification, whether arising out of transactions concerning the Collateral or otherwise, by the Borrower or the Obligor with respect thereto, except, in each case, for amendments, extensions and modifications, if any, to such Collateral otherwise permitted pursuant to <u>Section</u> <u>6.4(a)</u> of this Agreement and in accordance with the Collateral Management Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) <u>Full Payment</u>. As of the Funding Date thereof, the Borrower has no knowledge of any fact which should lead it to expect that any Loan will not be paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Members of the Borrower</u>. Each member of the Borrower is a "United States person" within the meaning of Section 7701(a)(30) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Environmental</u>. With respect to each item of Related Property as of the applicable Funding Date for the Loan related to such Related Property, to the actual knowledge of a Responsible Officer of the Borrower: (a) the related Obligor's operations comply in all material respects with all applicable Environmental Laws; (b) none of the related Obligor's operations is the subject of a federal or state investigation evaluating whether any remedial action, involving expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and (c) the related Obligor does not have any material contingent liability in connection with any release of any Hazardous Materials into the environment. As of the applicable Funding Date for the Loan related to such Related Property, neither of the Borrower nor the Collateral Manager has received any written or verbal notice of, or inquiry from any Governmental Authority regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Related Property, nor does any such Person have knowledge or reason to believe that any such notice will be received or is being threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) <u>Sanctions</u>. None of the Borrower, any Person directly or indirectly Controlling the Borrower nor any Person directly or indirectly Controlled by the Borrower and, to the Borrower's knowledge, no Related Party of the foregoing (i) is a Sanctioned Person; (ii) is 50% or more owned or controlled by, or is acting or purporting to act for or on behalf of, directly or indirectly, a Sanctioned Person; (iii) is, to the Borrower's knowledge, under investigation for an alleged breach of Sanction(s) by a governmental authority that enforces Sanctions; or (iv) will

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fund any repayment of the Advances with proceeds derived, directly or knowingly indirectly, from any transaction that would be prohibited by Sanctions or would otherwise cause any Lender or any other party to this Agreement, or any Related Party, to be in breach of any Sanctions. To each such Person's knowledge, no investor in such Person is a Sanctioned Person. The Borrower will notify each Lender and Administrative Agent in writing not more than three (3) Business Days after becoming aware of any breach of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Allocation of Charges</u>. There is not any agreement or understanding between the Collateral Manager and the Borrower (other than as expressly set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations to make payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) <u>Instructions to Obligors</u>. The Collection Account is the only account to which Obligors have been instructed by the Borrower, or the Collateral Manager on the Borrower's behalf, to send Principal Collections and Interest Collections on the Collateral. The Borrower has not granted any Person other than the Collateral Agent, on behalf of the Secured Parties, an interest in the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Broker</u><u>-Dealer</u>. The Borrower is not a broker-dealer or subject to the Securities Investor Protection Act of 1970, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>Plan Assets Status</u>. The Borrower is not a Benefit Plan Investor and will not be a Benefit Plan Investor at any time during the term of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) <u>Beneficial Ownership Certification</u>. The information included in the Beneficial Ownership Certification is true and correct in all respects to the best of the applicable Responsible Officer's knowledge.

**Section 4.2. <u>Representations and Warranties of the Borrower Relating to the Agreement and the Collateral</u>**.

The Borrower hereby represents and warrants, as of each Measurement Date and any date which Loans are pledged hereunder and as of each other date provided under this Agreement or the other Transaction Documents on which such representations and warranties are required to be (or deemed to be) made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Valid Transfer and Security Interest</u>. This Agreement constitutes a grant of a security interest in all of the Collateral to the Collateral Agent, for the benefit of the Secured Parties, which upon the delivery of the Required Loan Documents to the Collateral Custodian, the crediting of Loans to the Accounts and the filing of the financing statements described in <u>Section</u> <u>4.1(o)</u> and shall be a valid and first priority perfected security interest in the Loans forming a part of the Collateral and in that portion of the Collateral in which a security interest may be perfected by filing subject only to Permitted Liens. Neither the Borrower nor any Person claiming through or under the Borrower shall have any claim to or interest in the Collection Account or any other Account and, if this Agreement constitutes the grant of a security interest in such property, except for the interest of the Borrower in such property as a debtor for purposes of the UCC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Eligibility of Collateral</u>. (i) The Loan Tape and the information contained in each Borrowing Notice, Reinvestment Notice or Repayment Notice, as applicable, delivered pursuant to <u>Sections</u> <u>2.2</u> or <u>2.3</u>, as applicable, is an accurate and complete listing of all Collateral as of the related Funding Date and the information contained therein with respect to the identity of such Collateral and the amounts owing thereunder is true, correct and complete as of the related Funding Date, (ii) each such Loan designated on any Borrowing Base Certificate as an Eligible Loan and each Loan included as an Eligible Loan in any calculation of the Borrowing Base is an Eligible Loan, (iii) each such item of Collateral is free and clear of any Lien of any Person (other than Permitted Liens or in respect of current assets securing a super senior revolver) and in compliance with all Applicable Law and (iv) with respect to each such item of Collateral, all consents, licenses, approvals or authorizations of or registrations or declarations of any Governmental Authority or any Person required to be obtained, effected or given by the Borrower in connection with the pledge of a security interest in such Collateral to the Collateral Agent, for the benefit of the Secured Parties have been duly obtained, effected or given and are in full force and effect. For the avoidance of doubt, any inaccurate representation that a Loan is an Eligible Loan hereunder shall not constitute a Termination Event if the Borrower complies with <u>Section</u> <u>2.17(b)</u> hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Fraud</u>. To the knowledge of the Borrower, each Loan was originated or acquired without any fraud or misrepresentation on the part of the Obligor.

**Section 4.3. <u>Representations and Warranties of the Collateral Manager</u>**.

The Collateral Manager represents and warrants as follows as of each Measurement Date and as of each other date provided under this Agreement or the other Transaction Documents on which such representations and warranties are required to be (or deemed to be) made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization and Good Standing</u>. The Collateral Manager has been duly formed and is validly existing as a limited liability company, in good standing under the laws of the State of Delaware, with all requisite limited liability company power and authority to own or lease its properties, conduct its business as such business is presently conducted and enter into and perform its obligations pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Qualification</u>. The Collateral Manager is duly qualified to do business as a limited liability company, is in good standing as a limited liability company, and has obtained all necessary qualifications, licenses and approvals in all jurisdictions in which the ownership or lease of its property and or the conduct of its business requires such qualification, licenses or approvals, except where the failure to be so qualified or obtain such licenses or approvals would 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;(c) <u>Power and Authority; Due Authorization; Execution and Delivery</u>. The Collateral Manager (i) has all necessary limited liability company power, authority and legal right to (a) execute and deliver this Agreement and the other Transaction Documents to which it is a party and (b) carry out the terms of the Transaction Documents to which it is a party, and (ii) has duly authorized by all necessary limited liability company action the execution, delivery and performance of this Agreement and the other Transaction Documents to which it is a party. This Agreement and each other Transaction Document to which the Collateral Manager is a party have been duly executed and delivered by the Collateral 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;(d) <u>Binding Obligation</u>. This Agreement and each other Transaction Document to which the Collateral Manager is a party constitutes a legal, valid and binding obligation of the Collateral Manager enforceable against the Collateral Manager, in accordance with its respective terms, except as such enforceability may be limited by Insolvency Laws and general principles of equity (whether considered in a suit at law or in equity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>No Violation</u>. The consummation of the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof and thereof will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, the Collateral Manager's organizational documents or any Contractual Obligation of the Collateral Manager (ii) result in the creation or imposition of any Lien upon any of the Collateral Manager's properties pursuant to the terms of any such Contractual Obligation, other than this Agreement, or (iii) violate any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Proceedings</u>. There is no litigation or administrative proceeding or investigation pending or, to the knowledge of the Collateral Manager, threatened against the Collateral Manager, before any Governmental Authority (i) asserting the invalidity of this Agreement or any other Transaction Document to which the Collateral Manager is a party, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document to which the Collateral Manager is a party or (iii) seeking any determination or ruling that could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>All Consents Required</u>. All approvals, authorizations, consents, orders, licenses or other actions of any Person or of any Governmental Authority (if any) required for the due execution, delivery and performance by the Collateral Manager of this Agreement and any other Transaction Document to which the Collateral Manager is a party have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Reports Accurate</u>. All Collateral Manager's Certificates, Collateral Management Reports, Borrowing Notices, Reinvestment Notices, Repayment Notices, Borrowing Base Certificates and other written or electronic information, exhibits, financial statements, documents, books, records or reports furnished or to be furnished by the Collateral Manager to the Administrative Agent, the Collateral Agent, each Lender Agent or any Lender in connection with this Agreement are true, complete and correct in all material respects and no such Collateral Manager's Certificate, Collateral Management Report, Borrowing Notice, Reinvestment Notices, Repayment Notice, Borrowing Base Certificate or other written or electronic information, exhibit, financial statement, document, book, record or report omits to state a material fact or any fact necessary to make the statements contained therein not misleading; *provided* that, solely with respect to written or electronic information furnished by the Collateral Manager which was provided to the Collateral Manager from an Obligor with respect to a Loan, such information need only be true, complete and correct to the knowledge of the Collateral Manager; *provided further* that, the foregoing proviso shall not apply to any information presented in a Collateral Manager's Certificate, Collateral Management Report, Borrowing Notice, Reinvestment Notices, Repayment Notice or Borrowing Base Certificate.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Collections</u>. The Collateral Manager acknowledges that all Collections received by it or its Affiliates with respect to the Collateral pledged hereunder are held and shall be held in trust for the benefit of the Secured Parties until deposited into the Collection Account within two (2) Business Days after receipt as required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Solvency</u>. The Collateral Manager is not the subject of any Insolvency Proceedings or Insolvency Event. The transactions under this Agreement and any other Transaction Document to which the Collateral Manager is a party do not and will not render the Collateral Manager not Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Taxes</u>. The Collateral Manager has filed or caused to be filed all material Tax returns that are required to be filed by it and has paid or made adequate provisions for the payment of all material Taxes and all assessments made against it or any of its property, except Taxes the validity of which are currently being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of the Collateral Manager. No Tax lien (other than a Permitted Lien in respect of Taxes) has been filed and, to the Collateral Manager's knowledge, no claim is being asserted, with respect to any such Tax, fee, assessment or other charge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Exchange Act Compliance; Regulations T, U and X</u>. None of the transactions contemplated herein or in the other Transaction Documents (including, without limitation, the use of the proceeds from the pledge of the Collateral) will violate or result in a violation of Section 7 of the Exchange Act, or any regulations issued pursuant thereto, including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System, 12 C.F.R., Chapter II.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Security Interest</u>. The Collateral Manager will take all steps necessary to ensure that the Borrower has granted a security interest (as defined in the UCC) to the Collateral Agent, for the benefit of the Secured Parties, in the Collateral, which is enforceable in accordance with Applicable Law upon execution and delivery of this Agreement. Upon the filing of UCC-1 financing statements naming the Collateral Agent as secured party and the Borrower as debtor, the Collateral Agent, for the benefit of the Secured Parties, shall have a valid and first priority perfected security interest in the Loans and that portion of the Collateral in which a security interest may be perfected by filing (except for any Permitted Liens). All filings (including, without limitation, such UCC filings) as are necessary for the perfection of the Secured Parties' security interest in the Loans and that portion of the Collateral in which a security interest may be perfected by filing (or prior to the applicable Advance) will be made; provided that filings in respect of real property shall not be required.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>ERISA</u>. Except as would not reasonably be expected to have a Material Adverse Effect on the Collateral Manager, the present value of all benefits vested under each "employee pension benefit plan," as such term is defined in Section 3(2) of ERISA, other than a Multiemployer Plan, that is, subject to Title IV of ERISA or Section 412 of the Code and maintained by the Collateral Manager or any ERISA Affiliate of the Collateral Manager, or to which the Collateral Manager or any ERISA Affiliate of the Collateral Manager contributes or has an obligation to contribute, or has any liability (each, a "<u>Collateral Manager Pension Plan</u>"), does not exceed the value of the assets of the Collateral Manager Pension Plan allocable to such vested benefits (based on the value of such assets as of the last annual valuation date) determined in accordance with the assumptions for funding such Collateral Manager Pension Plan pursuant to Sections 412 and 430 of the Code for the applicable plan year. (i) No (A) prohibited transactions (within the meaning of Section 406(a) or (b) of ERISA or Section 4975 of the Code) for which an exemption is not available or has not previously been obtained from the United States Department of Labor with respect to any Pension Plan, (B) failure to meet the minimum funding standard as set forth in Section 302(a) of ERISA and Section 412(a) of the Code with respect to any Collateral Manager Pension Plan, (C) withdrawal from a Collateral Manager Pension Plan subject to Section 4063 of ERISA during a plan year in which the Collateral Manager or an ERISA Affiliate of the Collateral Manager was a "substantial employer" (as defined in Section 4001(a)(2) of ERISA), or a cessation of operations that is treated as a withdrawal under Section 4062(e) of ERISA or (D) Reportable Events have occurred with respect to any Collateral Manager Pension Plans, and (ii) neither the Collateral Manager nor any ERISA Affiliate of the Collateral Manager has incurred any withdrawal liability with respect to any Multiemployer Plan, that, in any case of the foregoing, would reasonably be expected to subject the Collateral Manager to any Material Adverse Effect. Except as would not reasonably be expected to have a Material Adverse Effect on the Collateral Manager, no notice of intent to terminate a Collateral Manager Pension Plan has been filed, nor has any Collateral Manager Pension Plan been terminated under Section 4041(c) of ERISA, nor has the Pension Benefit Guaranty Corporation instituted proceedings to terminate, or appoint a trustee to administer a Collateral Manager Pension Plan and no event has occurred or condition exists that would reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Collateral Manager Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>[Reserved</u>].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Collection Account</u>. The Collateral Manager has not permitted the Borrower to grant any Person other than the Collateral Agent an interest in the Collection Account, other than any such interest that has been terminated or fully and validly assigned to the Collateral Agent on or prior to the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Sanctions</u>. None of the Collateral Manager, any Person directly or (to the knowledge of the Collateral Manager) indirectly Controlling the Collateral Manager nor any Person directly or (to the knowledge of the Collateral Manager) indirectly Controlled by the Collateral Manager and, to the Collateral Manager's knowledge, no Related Party of the foregoing (i) is a Sanctioned Person; (ii) is 50% or more owned or controlled by, or is acting or purporting to act for or on behalf of, directly or indirectly, a Sanctioned Person; (iii) is, to the Collateral Manager's knowledge, under investigation for an alleged breach of Sanction(s) by a governmental authority that enforces Sanctions; or (iv) will fund any repayment of the Advances with proceeds derived, directly or knowingly indirectly, from any transaction that would be prohibited by Sanctions or would otherwise cause any Lender or any other party to this Agreement, or any Related Party, to be in breach of any Sanctions. To each Person's knowledge, no investor in such Person is a Sanctioned Person. The Collateral Manager will notify each Lender and Administrative Agent in writing not more than three (3) Business Days after becoming aware of any breach of this section.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Environmental</u>. With respect to each item of Related Property, to the actual knowledge of a Responsible Officer of the Collateral Manager: (a) the related Obligor's operations comply in all material respects with all applicable Environmental Laws; (b) none of the related Obligor's operations is the subject of a federal or state investigation evaluating whether any remedial action, involving expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and (c) the related Obligor does not have any material contingent liability in connection with any release of any Hazardous Materials into the environment. The Collateral Manager has not received any written or verbal notice of, or inquiry from any Governmental Authority regarding, any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the Related Property, nor does the Collateral Manager, have knowledge or reason to believe that any such notice will be received or is being threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>No Injunctions</u>. No injunction, writ, restraining order or other order of any nature adversely affects the Collateral Manager's performance of its obligations under this Agreement or any Transaction Document to which the Collateral Manager is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Instructions to Obligors</u>. The Collection Account is the only account to which Obligors have been instructed by the Collateral Manager on the Borrower's behalf to send Principal Collections and Interest Collections on the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Allocation of Charges</u>. There is not any agreement or understanding between the Collateral Manager and the Borrower (other than as expressly set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations to make payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Collateral Manager Default</u>. No event has occurred which constitutes a Collateral Manager Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Broker</u><u>-Dealer</u>. The Collateral Manager is not a broker-dealer or subject to the Securities Investor Protection Act of 1970, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Compliance with Law</u>. The Collateral Manager has complied in all material respects with all Applicable Law to which it may be subject, and no Loan in the Collateral contravenes in any material respect any Applicable Law (including, without limitation, all applicable predatory and abusive lending laws, laws, rules and regulations relating to licensing, truth in lending, fair credit billing, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy).

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**Section 4.4. <u>Representations and Warranties of the Collateral Agent</u>**.

The Collateral Agent in its individual capacity and as Collateral Agent represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization; Power and Authority</u>. It is a duly organized and validly existing national banking association in good standing under the laws of the United States. It has full corporate power, authority and legal right to execute, deliver and perform its obligations as Collateral Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Authorization</u>. The execution and delivery of this Agreement and the consummation of the transactions provided for herein have been duly authorized by all necessary association action on its part, either in its individual capacity or as Collateral Agent, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflict</u>. The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with, result in any breach of its articles of incorporation or bylaws or any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed of trust, or other instrument to which the Collateral Agent is a party or by which it or any of its property is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Violation</u>. The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with or violate, in any material respect, any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>All Consents Required</u>. All approvals, authorizations, consents, orders or other actions of any Person or Governmental Authority applicable to the Collateral Agent, required in connection with the execution and delivery of this Agreement, the performance by the Collateral Agent of the transactions contemplated hereby and the fulfillment by the Collateral Agent of the terms hereof have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Validity, Etc</u>. This Agreement constitutes the legal, valid and binding obligation of the Collateral Agent, enforceable against the Collateral Agent in accordance with its terms, except as such enforceability may be limited by applicable Insolvency Laws or general principles of equity (whether considered in a suit at law or in equity).

**Section 4.5. <u>Representations and Warranties of the Collateral Custodian</u>**.

The Collateral Custodian in its individual capacity and as Collateral Custodian represents and warrants as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization; Power and Authority</u>. It is a duly organized and validly existing national banking association in good standing under the laws of the United States. It has full corporate power, authority and legal right to execute, deliver and perform its obligations as Collateral Custodian under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Due Authorization</u>. The execution and delivery of this Agreement and the consummation of the transactions provided for herein have been duly authorized by all necessary association action on its part, either in its individual capacity or as Collateral Custodian, as the case may be.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>No Conflict</u>. The execution and delivery of this Agreement, the performance of the transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with, result in any breach of its articles of incorporation or bylaws or any of the material terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under any indenture, contract, agreement, mortgage, deed of trust, or other instrument to which the Collateral Custodian is a party or by which it or any of its property is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>No Violation</u>. The execution and delivery of this Agreement, the performance of the Transactions contemplated hereby and the fulfillment of the terms hereof will not conflict with or violate, in any material respect, any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>All Consents Required</u>. All approvals, authorizations, consents, orders or other actions of any Person or Governmental Authority applicable to the Collateral Custodian, required in connection with the execution and delivery of this Agreement, the performance by the Collateral Custodian of the transactions contemplated hereby and the fulfillment by the Collateral Custodian of the terms hereof have been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Validity, Etc</u>. The Agreement constitutes the legal, valid and binding obligation of the Collateral Custodian, enforceable against the Collateral Custodian in accordance with its terms, except as such enforceability may be limited by applicable Insolvency Laws and general principles of equity (whether considered in a suit at law or in equity).

**ARTICLE V.** 

**GENERAL COVENANTS** 

**Section 5.1. <u>Affirmative Covenants of the Borrower</u>**.

From the date hereof until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organizational Procedures and Scope of Business</u>. The Borrower will observe all organizational procedures required by its organizational documents and the laws of its jurisdiction of formation. Without limiting the foregoing, the Borrower will limit the scope of its business to: (i) the acquisition of Eligible Loans and the ownership and management of the Related Security and the related assets in the Collateral; (ii) the sale, transfer or other disposition of Loans as and when permitted under the Transaction Documents; (iii) entering into and performing under the Transaction Documents; (iv) consenting or withholding consent as to proposed amendments, waivers and other modifications of the Underlying Instruments to the extent not in conflict with the terms of this Agreement or any other Transaction Document; (v) exercising any rights (including but not limited to voting rights and rights arising in connection with an Insolvency Event with respect to an Obligor or the consensual or non-judicial restructuring of the debt or equity of an Obligor) or remedies in connection with the Loans and participating in the committees (official or otherwise) or other groups formed by creditors of an Obligor to the extent not in conflict with the terms of this Agreement or any other Transaction Document; and (vi) engaging in any activity and to exercise any powers permitted to limited liability companies under the laws of the State of Delaware that are related to the foregoing and necessary, convenient or advisable to accomplish 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;(b) <u>Compliance with Law</u>. The Borrower will comply in all material respects with all Applicable Law, including those with respect to the Collateral or any part thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Preservation of Company Existence</u>. The Borrower will preserve and maintain its limited liability company existence, rights, franchises and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing as a limited liability company, in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises, privileges and qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Performance and Compliance with Collateral</u>. The Borrower will, at its expense, timely and fully perform and comply with all provisions, covenants and other promises required to be observed by it under the Collateral and all other agreements related to such Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Keeping of Records and Books of Account</u>. The Borrower will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing the Collateral in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary for the collection of all or any portion of the Collateral and the identification of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Protection of Interest in Collateral</u>. With respect to the Collateral acquired by the Borrower, the Borrower will (i) acquire such Collateral directly from the Obligor thereof or from an agent bank in the case of a primary syndication or from an agent bank or another lender in the case of a secondary market purchase or from the Contributor, (ii) (at the Borrower's expense) take all action necessary to perfect, protect and more fully evidence the Borrower's ownership of such Collateral free and clear of any Lien other than the Lien created hereunder and Permitted Liens, including, without limitation, executing or causing to be executed such other instruments or notices as may be necessary or appropriate, (iii) permit the Administrative Agent or its respective agents or representatives to visit the offices of the Borrower during normal office hours and upon reasonable notice examine and make copies of all documents, books, records and other information concerning the Collateral and discuss matters related thereto with any of the officers or employees of the Borrower having knowledge of such matters; <u>provided</u> that, unless a Termination Event or Collateral Manager Default has occurred, the Administrative Agent shall be limited to one such visit per calendar year and (iv) take all additional action that the Administrative Agent may reasonably request to perfect, protect and more fully evidence the respective interests of the parties to this Agreement in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Deposit of Collections</u>. The Borrower shall promptly (but in no event later than two (2) Business Days after receipt) deposit all Collections received by the Borrower in respect of the Collateral into the applicable Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Special Purpose Entity</u>. The Borrower shall be in compliance with the special purpose entity requirements set forth in <u>Section</u> <u>4.1(v)</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;(i) <u>Termination Events</u>. As soon as is practicable and no later than three (3) Business Days following the Borrower's knowledge or notice of the occurrence of any Termination Event or Unmatured Termination Event, the Borrower will provide the Administrative Agent, the Collateral Agent and each Lender Agent with immediate written notice of the occurrence of such Termination Event or Unmatured Termination Event of which the Borrower has knowledge or has received notice. In addition, such notice will include a written statement of a Responsible Officer of the Borrower setting forth the details of such event and the action that the Borrower proposes to take with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Taxes</u>. The Borrower will file and pay any and all Taxes due and payable by it under Applicable Law; *provided* that, it shall not be required to pay any such Taxes if the validity thereof shall currently be contested in good faith by appropriate proceedings and appropriate reserves therefore have been established in its books in accordance with GAAP, in each case except where 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;(k) <u>Obligor Notification Forms</u>. The Borrower shall furnish the Collateral Agent and the Administrative Agent with an appropriate power of attorney to send (at the Administrative Agent's discretion on the Collateral Agent's behalf, after the occurrence of a Termination Event) Obligor notification forms to give notice to the Obligors of the Collateral Agent's interest in the Collateral and the obligation to make payments as directed by the Administrative Agent on the Collateral Agent's behalf.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Adverse Claims</u>. The Borrower will not create, or participate in the creation of, or permit to exist, any Liens in relation to the Collection Account other than as disclosed to the Administrative Agent, the Collateral Agent and each Lender Agent prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Notices</u>. The Borrower will furnish to the Administrative Agent, the Collateral Agent and each Lender 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;(i) <u>Income Tax Liability</u>. Within ten (10) Business Days after the receipt of revenue agent reports or other written proposals, determinations or assessments of the IRS or any other taxing authority which propose, determine or otherwise set forth positive adjustments to (i) the Tax liability of Audax or any "affiliated group" (within the meaning of Section 1504(a)(l) of the Code) of which Audax is a member in an amount equal to or greater than $5,000,000 in the aggregate or (ii) to the Tax liability of the Borrower itself in an amount equal or greater than $500,000 in the aggregate, telephonic or facsimile notice (confirmed in writing within five (5) Business Days) specifying the nature of the items giving rise to such adjustments and the amounts 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;(ii) <u>Auditors' Management Letters</u>. Promptly after the receipt thereof, any auditors' management letters that are received by the Borrower or by its accountants;

&nbsp;&nbsp;&nbsp;&nbsp;&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) <u>Representations and Warranties under this Agreement</u>. Promptly after receiving knowledge or notice of the same, the Borrower shall notify the Administrative Agent and each Lender Agent if any representation or warranty set forth in <u>Section</u> <u>4.1</u> or <u>Section</u> <u>4.2</u> was incorrect at the time it was given or deemed to have been given and at the same time deliver to the Administrative Agent, the Collateral Agent and each Lender Agent a written notice setting forth in reasonable detail the nature of such facts

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and circumstances. In particular, but without limiting the foregoing, the Borrower shall notify the Administrative Agent, the Collateral Agent and each Lender Agent in the manner set forth in the preceding sentence before any Funding Date of any facts or circumstances within the knowledge of the Borrower which would render any of the said representations and warranties untrue as of such Funding 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;(iv) <u>ERISA</u>. Promptly after receiving notice of any Reportable Event with respect to any Pension Plan that would reasonably be expected to have a Material Adverse Effect, a copy of such 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;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Proceedings</u>. The Borrower will furnish to the Administrative Agent as soon as possible and in any event within three (3) Business Days after the Borrower receives notice, or obtains knowledge thereof, notice of any settlement of, material judgment (including a material judgment with respect to the liability phase of a bifurcated trial) in or commencement of any material labor controversy, material litigation, material action, material suit or material proceeding before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the Collateral, the Transaction Documents, the Collateral Agent's, for the benefit of the Secured Parties, interest in the Collateral, or the Borrower or the Collateral Manager or any of their Subsidiaries or Portfolio Subsidiaries; *provided* that, notwithstanding the foregoing, any settlement, judgment, labor controversy, litigation, action, suit or proceeding affecting the Collateral, the Transaction Documents, the Collateral Agent's, for the benefit of the Secured Parties, interest in the Collateral, or the Borrower or the Collateral Manager or any of their Subsidiaries or Portfolio Subsidiaries in excess of $1,000,000 (or, with respect to the Collateral Manager, $7,500,000) (in each case, after any expected insurance proceeds) or more shall be deemed to be material for purposes of this <u>Section</u> <u>5.1(m)</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;(vi) <u>Notice of Certain Events</u>. Promptly upon becoming aware thereof, notice of (i) any Value Adjustment Event or (ii) any other event or circumstances that, in the reasonable judgment of the Borrower, is reasonably likely to have a Material Adverse Effect; 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;(vii) <u>Accounting Changes</u>. As soon as possible and in any event within three (3) Business Days after the effective date thereof, notice of any material change in the accounting policies of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Contest Recharacterization</u>. The Borrower shall in good faith contest the treatment of any Loans acquired from a third party seller as property of the bankruptcy estate of such third party seller.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Disclosure of Purchase Price</u>. The Borrower shall disclose to the Administrative Agent and the Lender Agents the Purchase Price for each Loan proposed to be transferred to the Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Obligor Defaults and Insolvency Events</u>. The Borrower shall give, or shall cause the Collateral Manager to give, notice to the Administrative Agent and the Lender Agents within two (2) Business Days of the Borrower's or the Collateral Manager's actual knowledge of the occurrence of any default by an Obligor under any Loan or any Insolvency Event with respect to any Obligor under any Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Required Loan Documents</u>. The Borrower shall deliver to the Collateral Custodian a copy of the Required Loan Documents (which may be by electronic means) and the Loan Checklist pertaining to each Loan within five (5) Business Days of the Funding Date pertaining to such Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Proper Records</u>. The Borrower shall at all times keep proper books of records and accounts in which full, true and correct entries shall be made of its transactions in accordance with GAAP and set aside on its books from its earning for each fiscal year all such proper reserves in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Satisfaction of Obligations</u>. The Borrower shall pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all its material obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by appropriate proceedings and reserves with respect thereto have been provided on the books of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Performance of Covenants</u>. The Borrower shall observe, perform and satisfy all the material terms, provisions, covenants and conditions required to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be paid by it, under the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Tax Treatment</u>. Unless otherwise required by Applicable Law, the Borrower and the Lenders shall treat the Advances advanced hereunder as indebtedness of the Borrower (or, so long as the Borrower is treated as a disregarded entity for U.S. federal income tax purposes, as indebtedness of the entity of which is considered to be a part) for U.S. federal income tax purposes and to file any and all tax forms in a manner consistent therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Officer's Certificate</u>. Upon the reasonable written request of the Administrative Agent to the Borrower (which shall be no more than once in any twelve (12) month period), the Borrower shall deliver an Officer's Certificate, in form and substance acceptable to the Lender Agents, the Collateral Agent and the Administrative Agent, providing (i) a certification, based upon a review and summary of UCC search results, that there is no other interest in the Collateral perfected by filing of a UCC financing statement other than in favor of the Collateral Agent and (ii) a certification, based upon a review and summary of tax and judgment lien searches satisfactory to the Administrative Agent, that there is no other interest in the Collateral based on any tax or judgment lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Disregarded Entity</u>. The Borrower will be disregarded as an entity separate from its owner pursuant to Treasury Regulation Section 301.7701-3(b), and neither the Borrower nor any other Person on its behalf shall make an election, or take any other action that would cause the Borrower, to be treated as other than an entity disregarded from its owner under Treasury Regulation Section 301.7701-3(c).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) <u>Other</u>. The Borrower will promptly furnish to the Administrative Agent, the Collateral Agent and each Lender Agent such other information, documents, records or reports respecting the Collateral or the condition or operations, financial or otherwise of the Borrower or the Collateral Manager as the Administrative Agent, the Collateral Agent and each Lender Agent may from time to time request in order to (x) protect the interests of the Administrative Agent, the Collateral Agent, each Lender Agent or the Secured Parties under or as contemplated by this Agreement or (y) comply with the Beneficial Ownership Regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Plan Assets Notice</u>. The Borrower shall promptly notify the Administrative Agent and each Lender Agent in the event that the Borrower at any time becomes a Benefit Plan Investor and, in such event, shall provide such additional information and representations as the Lenders may reasonably request relating to compliance with the prohibited transaction provisions of ERISA Section 406 and Code Section 4975.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Compliance with Anti-Money Laundering Laws and Anti-Corruption Laws</u>. The Borrower shall, each Person directly or (to the knowledge of the Borrower) indirectly Controlling the Borrower and each Person directly or indirectly (to the knowledge of the Borrower) Controlled by the Borrower and, to the Borrower's knowledge, any Related Party of the foregoing shall: (i) comply with all applicable Anti–Money Laundering Laws and Anti-Corruption Laws in all material respects, and shall maintain policies and procedures reasonably designed to ensure compliance with the Anti-Money Laundering Laws and Anti-Corruption Laws; (ii) conduct the requisite due diligence in connection with the transactions contemplated herein for purposes of complying with the Anti-Money Laundering Laws, including with respect to the legitimacy of any applicable investor and the origin of the assets used by such investor to purchase the property in question, and will maintain sufficient information to identify any applicable investor for purposes of the Anti-Money Laundering Laws; (iii) not, directly or knowingly indirectly, use proceeds of any Advance hereunder to fund, finance or facilitate any activities, business or transactions that are in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws; and (iv) not fund any repayment of the Advances with proceeds that are directly or knowingly indirectly derived from any transaction or activity that is prohibited by any Anti-Corruption Laws or Anti-Money Laundering Laws, or that could otherwise cause any Lender or any other party to this Agreement to be in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws.

**Section 5.2. <u>Negative Covenants of the Borrower</u>**.

From the date hereof until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Other Business</u>. The Borrower will not (i) engage in any business or incur any obligation, liability or contingent obligations other than the transactions contemplated by the Transaction Documents and the organizational documents of the Borrower, (ii) incur any Indebtedness of any kind other than pursuant to this Agreement, or (iii) form any Subsidiary (other than a Portfolio Subsidiary) or make any Investment (other than Permitted Investments) in any other Person; *provided* that, the Borrower may incur contingent obligations, including in respect of Delayed Draw Loans, in respect of funding additional loans for any Obligor, but only to the extent set forth in the documentation for the original Loan to such Obligor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Collateral not to be Evidenced by Instruments</u>. The Borrower will take no action to cause any Loan that is not, as of the related Funding Date, evidenced by an Instrument (other than the equity interests in any Portfolio Subsidiary formed to hold an REO Asset, which shall at all times be evidenced by a Certificated Security), to be so evidenced except in connection with the enforcement or collection of such Loan or unless such Instrument is promptly (but in no event later than three (3) Business Days) delivered to the Administrative Agent, together with an Indorsement in blank, as collateral security for such Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Security Interests</u>. Except as otherwise permitted herein and in respect of any Optional Sale in connection with a Permitted Securitization or Permitted Refinancing, Discretionary Sale, Lien Release Dividend or Replaced Loan, the Borrower will not sell, pledge, assign or transfer to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any Collateral, whether now existing or hereafter transferred hereunder, or any interest therein, and (other than any transfer of REO Assets to a Portfolio Subsidiary pursuant to <u>Section</u> <u>6.5</u>) the Borrower will not sell, pledge, assign or suffer to exist any Lien (except for Permitted Liens) on its interest in the Collateral. The Borrower will promptly notify the Administrative Agent and each Lender Agent of the existence of any Lien on any Collateral and the Borrower shall defend the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties in, to and under the Collateral against all claims of third parties; *provided* that, nothing in this <u>Section</u> <u>5.2(c)</u> shall prevent or be deemed to prohibit the Borrower from suffering to exist Permitted Liens upon any of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Mergers, Acquisitions, Sales, etc</u>. The Borrower will not be a party to any merger or consolidation, or purchase or otherwise acquire any of the assets or any stock of any class of, or any partnership or joint venture interest in, any other Person, or sell, transfer, convey or lease any of its assets, or sell or assign with or without recourse any Collateral or any interest therein (other than as permitted pursuant to this Agreement, and other than with respect to any REO Asset).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Deposits to Special Accounts</u>. The Borrower will not deposit or otherwise credit, or cause or permit to be so deposited or credited, to the Collection Account cash or cash proceeds other than Collections in respect of the Collateral; *provided* that, notwithstanding the foregoing, Excluded Amounts may be deposited or credited to the Collection Account if promptly identified and removed by the Borrower or the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Restricted Junior Payments</u>. The Borrower shall not make any Restricted Junior Payment other than from amounts the Borrower receives in accordance with <u>Section</u> <u>2.7</u>, or <u>Section</u> <u>2.8</u>, and so long as no Termination Event or Unmatured Termination Event has occurred or would result therefrom, the Borrower may declare and make distributions to its members on its membership interests; <u>provided</u> that, if the Borrower or any direct or indirect parent thereof elects to be taxed as a RIC, the Borrower shall be permitted to, without duplication, make Restricted Junior Payments (A) required to maintain the status of the Borrower as if it had elected to be taxable as a RIC and (B) required for Borrower to avoid federal excise Tax imposed by Section 4982 of the Code as if it had elected to be taxed as a RIC.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Change of Name or Location of Required Loan Documents or Collateral Management Files</u>. The Borrower shall not (x) change its name, move the location of its principal place of business and registered office, change the offices where it keeps the Records from the location referred to in <u>Section</u> <u>13.2</u>, or change the jurisdiction of its formation, or (y) move or, without the prior consent of the Administrative Agent, consent to the Collateral Custodian or the Collateral Manager moving, the Required Loan Documents or the Collateral Management Files, as applicable, from the location thereof (as set forth in <u>Section</u> <u>5.7(c)</u> of this Agreement) on the Closing Date, unless the Borrower has given at least thirty (30) days' (or such shorter period as consented to by the Administrative Agent in its sole discretion) written notice to the Administrative Agent and the Collateral Agent and has taken all actions required under the UCC of each relevant jurisdiction in order to continue the first priority perfected security interest of the Collateral Agent, for the benefit of the Secured Parties, in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Accounting of Purchases</u>. Other than for tax and financial accounting purposes, the Borrower will not account for or treat (whether in financial statements or otherwise) the transactions contemplated by this Agreement in any manner other than as a sale of the Collateral to the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>ERISA Matters</u>. Except as would not reasonably be expected to have a Material Adverse Effect, the Borrower will not (a) engage, and will exercise its reasonable best efforts not to permit any ERISA Affiliate to engage, in any prohibited transaction (within the meaning of ERISA Section 406(a) or (b) or Code Section 4975) for which an exemption is not available or has not previously been obtained from the United States Department of Labor with respect to any Pension Plan, (b) fail, and will exercise its reasonable best efforts not to permit any ERISA Affiliate to fail, to meet the minimum funding standard set forth in Section 302(a) of ERISA and Section 412(a) of the Code with reasonable respect to any Pension Plan other than a Multiemployer Plan, (c) fail, and will exercise its reasonable best efforts not to permit any ERISA Affiliate to fail, to make any payments to a Multiemployer Plan that the Borrower or any ERISA Affiliate may be required to make under the agreement relating to such Multiemployer Plan or any law pertaining thereto, (d) terminate, and will exercise its reasonable best efforts not to permit any ERISA Affiliate to terminate, any Pension Plan so as to result, directly or indirectly in any liability to the Borrower, or (e) permit, and will exercise its reasonable best efforts not to permit any ERISA Affiliate to permit, to exist any occurrence of any Reportable Event with respect to any Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Organizational Documents</u>. The Borrower will not amend, modify, waive or terminate any provision of its organizational documents without the prior written consent of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Changes in Payment Instructions to Obligors</u>. The Borrower will not make any change, or permit the Collateral Manager to make any change, in its instructions to Obligors regarding payments to be made to the applicable Collection Account with respect to the Collateral, unless the Administrative Agent has consented to such addition, termination or change (which consent shall not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Extension or Amendment of Collateral</u>. The Borrower will not, except as otherwise permitted in <u>Section</u> <u>6.4(a)</u>, extend, amend or otherwise modify the terms of any Loan (including the Related Security).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Use of Proceeds</u>. The Borrower shall not use the proceeds of any Advance other than to (i) finance the purchase by the Borrower from any third party seller, on a "true sale" basis, of Collateral or (ii) make distributions (including Permitted RIC Distributions) to the Equityholder in accordance with the terms hereof or pay related expenses (including interest, fees and expenses payable hereunder) in accordance with Sections 2.7 and 2.8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Limited Assets</u>. The Borrower shall not hold or own any assets that are not part of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Tax Treatment</u>. The Borrower shall not elect to be treated as a corporation for U.S. federal income tax purposes and shall take all reasonable steps necessary to avoid being treated as a corporation for U. S. federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Allocation of Charges</u>. There will not be any agreement or understanding between the Collateral Manager and the Borrower (other than as expressly set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations to make payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Members of the Borrower</u>. The Borrower shall not permit any Person which is not a "United States person" within the meaning Section 7701(a)(30) of the Code to own any membership interests of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Compliance with Sanctions</u>. None of the Borrower, any Person directly or (to the knowledge of the Borrower) indirectly Controlling the Borrower nor any Person directly or (to the knowledge of the Borrower) indirectly Controlled by the Borrower and, to the Borrower's knowledge, no Related Party of the foregoing will, directly or knowingly indirectly, use the proceeds of any Advance hereunder, or lend, contribute, or otherwise make available such proceeds to any subsidiary, joint venture partner, or other Person (i) to fund any activities or business of or with a Sanctioned Person, or (ii) in any manner that would be prohibited by Sanctions or would otherwise cause any Lender to be in breach of any Sanctions. Each such Person shall comply with all applicable Sanctions in all material respects, and shall maintain policies and procedures reasonably designed to ensure compliance with Sanctions. The Borrower will notify each Lender and the Administrative Agent in writing not more than three (3) Business Days after becoming aware of any breach of this section.

**Section 5.3. <u>Affirmative Covenants of the Collateral Manager</u>**.

From the date hereof until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Compliance with Law</u>. The Collateral Manager will comply in all material respects with all Applicable Law, including those with respect to managing and servicing the Collateral or any part thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Preservation of Company Existence</u>. The Collateral Manager will preserve and maintain its limited liability company existence, rights, franchises and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing as a limited liability company, in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises, privileges and qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Obligations and Compliance with Collateral</u>. The Collateral Manager shall, in accordance with the Collateral Management Standard, duly fulfill and comply with all obligations on the part of the Borrower to be fulfilled or complied with under or in connection with each item of Collateral and will do nothing to impair the rights of the Collateral Agent, for the benefit of the Secured Parties, or of the Secured Parties in, to and under the Collateral; *provided* that, without limiting the foregoing (and, for the avoidance of doubt, the Collateral Manager's indemnification obligations hereunder), it is understood and agreed that the Collateral Manager will not act as a guarantor with respect to any obligation of the Borrower hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Keeping of Records and Books of Account</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Collateral Manager, on behalf of the Borrower, will maintain and implement administrative and operating procedures (including, without limitation, an ability to recreate records evidencing the Collateral in the event of the destruction of the originals thereof), and keep and maintain all documents, books, records and other information reasonably necessary or advisable for the collection of all or any portion of the Collateral and the identification 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;(ii) The Collateral Manager shall permit the Administrative Agent or its agents or representatives, who may be joined by each Lender Agent and/or its respective agents or representatives, to visit the offices of the Collateral Manager during normal office hours and upon reasonable notice and examine and make copies of all documents, books, records and other information concerning the Collateral and discuss matters related thereto with any of the officers or employees of the Collateral Manager having knowledge of such matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The Collateral Manager will, on or prior to the date hereof, mark its books and records in a manner that accurately ensures all assets which constitute Collateral are clearly marked as being held in the Borrower's name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Preservation of Security Interest</u>. The Collateral Manager (at its own expense, on behalf of the Borrower) will file such financing and continuation statements and any other documents that may be required by any law or regulation of any Governmental Authority to preserve and protect fully the first priority perfected security interest of the Collateral Agent, for the benefit of the Secured Parties in, to and under the Loans and that portion of the Collateral in which a security interest may be perfected by filing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination Events</u>. As soon as is practicable and no later than three (3) Business Days following the Collateral Manager's knowledge or notice of the occurrence of any Termination Event or Unmatured Termination Event, the Collateral Manager will provide the Administrative Agent, the Collateral Agent and each Lender Agent with immediate written notice of the occurrence of such Termination Event and such Unmatured Termination Event of which the Collateral Manager has knowledge or has received notice. In addition, such notice will include a written statement of the chief financial officer or chief accounting officer of the Collateral Manager setting forth the details of such event and the action that the Collateral Manager proposes to take with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Taxes</u>. The Collateral Manager will file and pay any and all Taxes due and payable by it under the applicable law; *provided* that, it shall not be required to pay any such Taxes if the validity thereof shall currently be contested in good faith by appropriate proceedings and appropriate reserves therefore have been established in its books in accordance with GAAP, in each case except where 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;(h) <u>Other</u>. The Collateral Manager will promptly furnish to the Administrative Agent, the Collateral Agent and each Lender Agent such other information, documents, records or reports respecting the Collateral or the condition or operations, financial or otherwise, of the Borrower or the Collateral Manager as the Administrative Agent, the Collateral Agent and each Lender Agent may from time to time reasonably request in order to protect the interests of the Administrative Agent, the Collateral Agent, each Lender Agent or Secured Parties under or as contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Proceedings</u>. The Collateral Manager will furnish to the Administrative Agent as soon as possible and in any event within three (3) Business Days after any executive officer of the Collateral Manager receives notice or obtains knowledge thereof, notice of any settlement of, material judgment (including a material judgment with respect to the liability phase of a bifurcated trial) in or commencement of any material labor controversy, material litigation, material action, material suit or material proceeding before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting the Collateral, the Transaction Documents, the Secured Parties' interest in the Collateral, or the Borrower or the Collateral Manager or any of their Subsidiaries or Portfolio Subsidiaries; *provided* that, notwithstanding the foregoing, any settlement, judgment, labor controversy, litigation, action, suit or proceeding affecting the Collateral, the Transaction Documents, the Collateral Agent's, for the benefit of the Secured Parties, interest in the Collateral, or the Borrower or the Collateral Manager or any of their Subsidiaries or Portfolio Subsidiaries in excess of $1,000,000 (or, with respect to the Collateral Manager, $7,500,000) (in each case, after any expected insurance proceeds) or more shall be deemed to be material for purposes of this <u>Section</u> <u>5.3(i)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Deposit of Collections</u>. The Collateral Manager shall and shall cause the Borrower to promptly (but in no event later than two (2) Business Days after receipt) deposit all Collections received by the Borrower or the Collateral Manager into the applicable Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Change of Control</u>. Upon the occurrence of a Change of Control, the Collateral Manager shall provide the Administrative Agent, each Lender Agent and the Collateral Agent with notice of such Change of Control within thirty (30) days after completion of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Loan Register</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;&nbsp;&nbsp;&nbsp;&nbsp;(i) Each loan agreement evidencing a Loan shall obligate the applicable administrative agent to maintain with respect to each Noteless Loan a register (each, a "<u>Loan Register</u>") in which it will record (v) the amount of such Loan, (w) the amount of any principal or interest due and payable or to become due and payable from the Obligor thereunder, (x) the amount of any sum in respect of such Loan received from the Obligor, (y) the date of origination of such Loan and (z) the maturity date of such 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) At any time a Noteless Loan is included as part of the Collateral pursuant to this Agreement, the Collateral Manager shall deliver to the Collateral Custodian a copy of the related Loan Register, together with a certificate of a Responsible Officer of the Collateral Manager certifying to the accuracy of such Loan Register as of the Funding Date of such Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Accounting Changes</u>. As soon as possible and in any event within three (3) Business Days after the effective date thereof, the Collateral Manager will provide to the Administrative Agent notice of any material change in the accounting policies of the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Legal Opinions</u>. The Collateral Manager shall take all other actions necessary to maintain the accuracy of the factual assumptions set forth in the legal opinions of Richards, Layton & Finger, P.A., as special counsel to the Collateral Manager and the Borrower, issued on the Closing Date in connection with the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Instructions to Agents and Obligors</u>. The Collateral Manager shall direct any agent or administrative agent for any Loan to remit all payments and collections with respect to such Loan, and, if applicable, to direct the Obligor with respect to such Loan to remit all such payments and collections with respect to such Loan directly to the Collection Account. The Borrower and the Collateral Manager shall take commercially reasonable steps to ensure that only funds constituting payments and collections relating to Loans shall be deposited into the Collection Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Capacity as Collateral Manager</u>. The Collateral Manager will ensure that, at all times when it is dealing with or in connection with the Loans in its capacity as Collateral Manager, it holds itself out as Collateral Manager, and not in any other capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Insurance Policies</u>. The Collateral Manager has caused, and will cause, to be performed any and all acts reasonably required to be performed to preserve the rights and remedies of the Collateral Agent and the Secured Parties in any Insurance Policies applicable to Loans (to the extent the Collateral Manager or an Affiliate of the Collateral Manager is the agent or servicer under the applicable Underlying Instrument) including, without limitation, in each case, any necessary notifications of insurers, assignments of policies or interests therein, and establishments of co-insured, joint loss payee and mortgagee rights in favor of the Collateral Agent and the Secured Parties; *provided* that, unless the Borrower is the sole lender under such Underlying Instrument, the Collateral Manager shall only take such actions that are customarily taken by or on behalf of a lender in a syndicated loan facility to preserve the rights of such 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;(r) <u>Compliance with Anti-Money Laundering Laws and Anti-Corruption Laws</u>. The Collateral Manager, each Person directly or (to the knowledge of the Collateral Manager) indirectly Controlling the Collateral Manager and each Person directly or (to the knowledge of the Collateral Manager) indirectly Controlled by the Collateral Manager and, to the Collateral Manager's<u> </u>knowledge, any Related Party of the foregoing shall: (i) comply with all applicable Anti-Money Laundering Laws and Anti-Corruption Laws in all material respects, and shall maintain policies<u> </u>and procedures reasonably designed to ensure compliance with the Anti-Money Laundering Laws and Anti-Corruption Laws; (ii) conduct the requisite due diligence in connection with the transactions contemplated herein for purposes of complying with the Anti-Money Laundering Laws, including with respect to the legitimacy of any applicable investor and the origin of the assets used by such investor to purchase the property in question, and will maintain sufficient information to identify any applicable investor for purposes of the Anti-Money Laundering Laws; (iii) not, directly or knowingly indirectly, use proceeds of any Advance hereunder to fund, finance or facilitate any activities, business or transactions that are in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws; and (iv) not fund any repayment of the Advances with proceeds that are directly or knowingly indirectly derived from any transaction or activity that is prohibited by any Anti-Corruption Laws or Anti-Money Laundering Laws, or that could otherwise cause any Lender or any other party to this Agreement to be in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Sanctions</u>. The Collateral Manager shall promptly, but no later than three (3) Business Days after becoming aware thereof, notify the Administrative Agent and the Lenders in writing of any breach of any representation, warranty or covenant relating to Sanctions or Sanctioned Persons by itself or by the Borrower.

**Section 5.4. <u>Negative Covenants of the Collateral Manager</u>**.

From the date hereof until the Collection Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Deposits to Special Accounts</u>. The Collateral Manager will not deposit or otherwise credit, or cause or permit to be so deposited or credited, to the Collection Account cash or cash proceeds other than Collections in respect of the Collateral; *provided* that, notwithstanding the foregoing, Excluded Amounts may be deposited or credited to the Collection Account if promptly identified and removed by the Borrower or the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Mergers, Acquisition, Sales, etc</u>. The initial Collateral Manager will not consolidate with or merge into any other Person or convey or transfer its properties and assets substantially as an entirety to any Person, unless the initial Collateral Manager is the surviving entity and unless:

&nbsp;&nbsp;&nbsp;&nbsp;&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 initial Collateral Manager has delivered to the Administrative Agent and each Lender Agent an Officer's Certificate and an Opinion of Counsel each stating that any such consolidation, merger, conveyance or transfer and any supplemental agreement executed in connection therewith comply with this <u>Section</u> <u>5.4</u> and that all conditions precedent herein provided for relating to such transaction have been complied with and, in the case of the Opinion of Counsel, that such supplemental agreement is legal, valid and binding with respect to the Collateral Manager and such other matters as the Administrative Agent may reasonably request;

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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;(ii) the initial Collateral Manager shall have delivered notice of such consolidation, merger, conveyance or transfer to the Administrative Agent and each Lender Agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) after giving effect thereto, no Termination Event or Collateral Manager Default or event that with notice or lapse of time would constitute either a Termination Event or a Collateral Manager Default shall have occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Change of Name or Location of Required Loan Documents and Collateral Management Files</u>. The Collateral Manager shall not (x) change its name, move the location of its principal place of business and chief executive office, change the offices where it keeps the Records from the location referred to in <u>Section</u> <u>13.2</u>, or change the jurisdiction of its formation, or (y) move or, without the prior consent of the Administrative Agent, consent to the Collateral Custodian moving, the Required Loan Documents or Collateral Management Files, as applicable, from the location thereof (as set forth in <u>Section</u> <u>5.7(c)</u> of this Agreement) on the Closing Date, unless the Collateral Manager has given at least thirty (30) days' (or such shorter period as consented to by the Administrative Agent in its sole discretion) written notice to the Administrative Agent and has taken all actions required under the UCC of each relevant jurisdiction in order to continue the first priority perfected security interest of the Collateral Agent, for the benefit of the Secured Parties, in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Change in Payment Instructions to Obligors</u>. The Collateral Manager will not make any change, or permit the Borrower to make any change, in its instructions to Obligors regarding payments to be made to the applicable Collection Account with respect to the Collateral, unless the Administrative Agent has consented to such addition, termination or change (which consent shall not be unreasonably withheld).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Extension or Amendment of Loans</u>. The Collateral Manager will not, except as otherwise permitted in <u>Section</u> <u>6.4(a)</u>, extend, amend or otherwise modify the terms of any Loan (including any Related Security).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Allocation of Charges</u>. There will not be any agreement or understanding between the Collateral Manager and the Borrower (other than as expressly set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations to make payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>[Reserved]</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Special Purpose Entity Requirements</u>. The Collateral Manager shall not, and shall not permit the Borrower to, take any action that would cause the Borrower to not be in compliance with the special purpose entity requirements set forth in <u>Section</u> <u>4.1(v)</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;(i) <u>Disregarded Entity</u>. The Collateral Manager shall not, and shall not permit the Borrower to, take any action that would cause the Borrower to not be disregarded as an entity separate from its owner pursuant to Treasury Regulation Section 301.7701-3(b) and shall not permit either the Borrower or any other Person on its behalf to make an election, or to take any other action that would cause the Borrower, to be treated as other than an entity disregarded from its owner under Treasury Regulation Section 301.7701-3(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Collection Account</u>. The Collateral Manager shall not, and shall not permit the Borrower to, grant the right to take dominion and control of the Collection Account to any Person, except to the Collateral Agent as contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Compliance with Sanctions</u>. None of the Collateral Manager, any Person directly or (to the knowledge of the Collateral Manager) indirectly Controlling the Collateral Manager nor any Person directly or (to the knowledge of the Collateral Manager) indirectly Controlled by the Collateral Manager and, to the Collateral Manager's knowledge, no Related Party of the foregoing will, directly or knowingly indirectly, use the proceeds of any Advance hereunder, or lend, contribute, or otherwise make available such proceeds to any subsidiary, joint venture partner, or other Person (i) to fund any activities or business of or with a Sanctioned Person, or (ii) in any manner that would be prohibited by Sanctions or would otherwise cause any Lender to be in breach of any Sanctions. Each such Person shall comply with all applicable Sanctions in all material respects, and shall maintain policies and procedures reasonably designed to ensure compliance with Sanctions. The Collateral Manager will notify each Lender and the Administrative Agent in writing not more than one (1) Business Day after becoming aware of any breach of this section.

**Section 5.5. <u>Affirmative Covenants of the Collateral Agent</u>**.

From the date hereof until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Compliance with Law</u>. The Collateral Agent will comply in all material respects with all Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Preservation of Existence</u>. The Collateral Agent will preserve and maintain its existence, rights, franchises and privileges in the jurisdiction of its formation, and qualify and remain qualified in good standing in each jurisdiction where the failure to preserve and maintain such existence, rights, franchises, privileges and qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

**Section 5.6. <u>Negative Covenants of the Collateral Agent</u>**.

From the date hereof until the Collection Date the Collateral Agent will not make any changes to the Collateral Agent and Portfolio Administration Fee set forth in the CA & CC Fee Letter without the prior written approval of the Administrative Agent and the Borrower.

**Section 5.7. <u>Affirmative Covenants of the Collateral Custodian</u>**.

From the date hereof until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Compliance with Law</u>. The Collateral Custodian will comply in all material respects with all Applicable 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;(b) <u>Preservation of Existence</u>. The Collateral Custodian will preserve and maintain its existence, rights, franchises and privileges in the jurisdiction of its formation and qualify and remain qualified in good standing in each jurisdiction where failure to preserve and maintain such existence, rights, franchises, privileges and qualification has had, or could reasonably be expected to have, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Location of Required Loan Documents</u>. Subject to <u>Section</u> <u>8.8</u>, the Required Loan Documents shall remain at all times in the possession of the Collateral Custodian at the address of the Collateral Custodian located at 1505 Energy Park Drive, St. Paul, MN 55108 unless notice of a different address is given in accordance with the terms hereof or unless the Administrative Agent agrees to allow certain Required Loan Documents to be released to the Collateral Manager on a temporary basis in accordance with the terms hereof, except as such Required Loan Documents may be released pursuant to this Agreement.

**Section 5.8. <u>Negative Covenants of the Collateral Custodian</u>**.

From the date hereof until the Collection Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Required Loan Documents</u>. The Collateral Custodian will not dispose of any documents constituting the Required Loan Documents in any manner that is inconsistent with the performance of its obligations as the Collateral Custodian pursuant to this Agreement and will not dispose of any Collateral except as contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Changes to Collateral Agent and Portfolio Administration Fee</u>. From the date hereof until the Collection Date the Collateral Custodian will not make any changes to the Collateral Agent and Portfolio Administration Fee set forth in the CA & CC Fee Letter without the prior written approval of the Administrative Agent and the Borrower.

**ARTICLE VI.** 

**ADMINISTRATION AND SERVICING OF CONTRACTS** 

**Section 6.1. <u>Designation of the Collateral Manager</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Collateral Manager</u>. The servicing, administering and collection of the Collateral shall be conducted by the Person designated as the Collateral Manager hereunder from time to time in accordance with this <u>Section</u> <u>6.1</u>. Until the Administrative Agent gives to Audax a Collateral Manager Termination Notice, Audax is hereby appointed as, and hereby accepts such appointment and agrees to perform the duties and responsibilities of, a Collateral Manager pursuant to the terms hereof. The Collateral Manager and the Borrower hereby acknowledge that the Administrative Agent and the Secured Parties are third party beneficiaries of the obligations taken by the Collateral Manager hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Successor Collateral Manager</u>. Upon the Collateral Manager's receipt of a Collateral Manager Termination Notice from the Administrative Agent pursuant to <u>Section</u> <u>6.12</u>, the Collateral Manager agrees that it will terminate its activities as Collateral Manager hereunder in a manner that the Administrative Agent believes will facilitate the transition of the performance

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of such activities to a successor Collateral Manager, and the successor Collateral Manager shall assume each and all of the Collateral Manager's obligations to service and administer the Collateral, on the terms and subject to the conditions herein set forth, and the Collateral Manager shall use its best efforts to assist the successor Collateral Manager in assuming such obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subcontracts</u>. The Collateral Manager may, with the prior written consent of the Administrative Agent, subcontract with any other Person for servicing, administering or collecting the Collateral; *provided* that, (i) the Collateral Manager shall select any such Person with reasonable care and shall be solely responsible for the fees and expenses payable to such person, (ii) the Collateral Manager shall not be relieved of, and shall remain liable for the performance of the duties and obligations of the Collateral Manager pursuant to the terms hereof without regard to any subcontracting arrangement, and (iii) any such subcontract shall be terminable upon the occurrence of a Collateral Manager Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Collateral Management Programs</u>. In the event that the Collateral Manager uses any software program in servicing the Collateral that it licenses from a third party, the Collateral Manager shall use its best efforts to obtain, either before the Closing Date or as soon as possible thereafter, whatever licenses or approvals are necessary to allow the Administrative Agent or the Collateral Manager to use such program and to allow the Collateral Manager to assign such licenses to any Successor Collateral Manager appointed as provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Waiver</u>. The Borrower acknowledges that the Administrative Agent or any of its Affiliates may act as the Collateral Agent and/or the Collateral Manager, and the Borrower waives any and all claims against the Administrative Agent, each Lender Agent or any of their respective Affiliates, the Collateral Agent and the Collateral Manager (other than claims relating to such party's gross negligence or willful misconduct) relating in any way to the custodial or collateral administration functions having been performed by the Administrative Agent or any of its Affiliates in accordance with the terms and provisions (including the standard of care) set forth in the Transaction Documents.

**Section 6.2. <u>Duties of the Collateral Manager</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Duties</u>. The Collateral Manager shall take or cause to be taken all such actions as may be necessary or advisable to service, administer and collect on the Collateral from time to time, all in accordance with Applicable Law and the Collateral Management Standard. Without limiting the foregoing, the duties of the Collateral Manager shall include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) supervising the Collateral, including communicating with Obligors, negotiating and executing on behalf of the Borrower amendments, restatements, supplements and other modifications (including, without limitation, in respect of restructuring agreements, prepackaged plans and other documents related to restructuring arrangements), negotiating and providing on behalf of the Borrower consents and waivers, enforcing and collecting on the Collateral and otherwise managing the Collateral on behalf of the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) preparing and submitting claims to, and acting as post-billing liaison with, Obligors on each Loan (for which no administrative or similar agent exists);

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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;(iii) maintaining all necessary servicing records with respect to the Collateral and providing such reports to the Administrative Agent and each Lender Agent (with a copy to the Collateral Agent and the Collateral Custodian) in respect of the servicing of the Collateral (including information relating to its performance under this Agreement) as may be required hereunder or as the Administrative Agent or each Lender Agent 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;(iv) maintaining and implementing administrative and operating procedures (including, without limitation, an ability to recreate servicing records evidencing the Collateral in the event of the destruction of the originals thereof) and keeping and maintaining all documents, books, records and other information reasonably necessary or advisable for the collection of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) promptly delivering to the Administrative Agent, each Lender Agent, the Collateral Agent or the Collateral Custodian, from time to time, such information and servicing records (including information relating to its performance under this Agreement) as the Administrative Agent, each Lender Agent, the Collateral Agent or the Collateral Custodian may from time to time reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) identifying each Loan clearly and unambiguously in its servicing records to reflect that such Loan is owned by the Borrower and that the Borrower is pledging a security interest therein to the Secured Parties pursuant to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) notifying the Administrative Agent and each Lender Agent of any material action, suit, proceeding, dispute, offset, deduction, defense or counterclaim (1) that is or is threatened to be asserted by an Obligor with respect to any Loan (or portion thereof) of which it has knowledge or has received notice; or (2) that could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) using its commercially reasonable efforts to maintain the perfected security interest of the Collateral Agent, for the benefit of the Secured Parties, 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;(ix) maintaining the Collateral Management File(s) with respect to Loans included as part of the Collateral; *provided* that, so long as the Collateral Manager is in possession of any originals of the documents in the Collateral Management File, the Collateral Manager will hold such originals in a fireproof safe or fireproof file cabinet; *provided further* that, upon the occurrence of a Termination Event or the occurrence and continuation of an Unmatured Termination Event, the Administrative Agent may request the Collateral Management File(s) to be sent to the Administrative Agent or its designee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) with respect to each Loan included as part of the Collateral, making the Collateral Management File available for inspection by the Administrative Agent, upon reasonable advance notice, at the offices of the Collateral Manager during normal business hours;

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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;(xi) directing the Collateral Agent to make payments pursuant to the terms of the Collateral Management Report in accordance with <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> and <u>Section</u> <u>2.9</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;(xii) directing the sale or substitution of Collateral in <u>Section</u> <u>2.17</u>, <u>Section</u> <u>2.18</u> and <u>Section</u> <u>2.19</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;(xiii) providing assistance to the Borrower with respect to the purchase and sale of and payment for the Loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) instructing the Obligors and the administrative agents on the Loans to make payments directly into the Collection Account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) complying with such other duties and responsibilities as may be required of the Collateral Manager by this Agreement.

It is acknowledged and agreed for purposes of this <u>Article</u> <u>VI</u> (including <u>Section</u> <u>6.5</u> hereof) that in circumstances in which a Person other than the Borrower or the Collateral Manager acts as lead agent with respect to any Loan, the Collateral Manager shall perform its servicing duties hereunder only to the extent that, as a lender under the related loan syndication Underlying Instruments, it has the right to do so.

&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, the exercise by the Administrative Agent, the Collateral Agent, each Lender Agent and the Secured Parties of their rights hereunder shall not release the Collateral Manager or the Borrower from any of their duties or responsibilities with respect to the Collateral. The Secured Parties, the Administrative Agent, each Lender Agent, the Collateral Agent and the Collateral Custodian shall not have any obligation or liability with respect to any Collateral, nor shall any of them be obligated to perform any of the obligations of the Collateral Manager hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any payment by an Obligor in respect of any Indebtedness owed by it to the Borrower shall, except as otherwise specified by such Obligor or otherwise required by contract or law and unless otherwise instructed by the Administrative Agent, be applied as a collection of a payment by such Obligor (starting with the oldest such outstanding payment due) to the extent of any amounts then due and payable thereunder before being applied to any other receivable or other obligation of such Obligor.

**Section 6.3. <u>Authorization of the Collateral Manager</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Borrower, the Administrative Agent, each Lender Agent, and each Lender hereby authorizes the Collateral Manager (including any successor thereto) to take any and all reasonable steps in its name (or in the name of a Portfolio Subsidiary with respect to any REO Asset) and on its behalf necessary or desirable in the determination of the Collateral Manager and not inconsistent with the pledge of the Collateral by the Borrower to the Collateral Agent, on behalf of the Secured Parties, hereunder, to collect all amounts due under any and all Collateral, including, without limitation, endorsing any of their names on checks and other instruments representing Collections, executing and delivering any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable

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instruments, with respect to the Collateral and, after the delinquency of any Collateral and to the extent permitted under and in compliance with Applicable Law, to commence proceedings with respect to enforcing payment thereof, to the same extent as the Collateral Manager could have done if it had continued to own such Collateral. The Borrower and the Collateral Agent, on behalf of the Secured Parties, shall furnish the Collateral Manager (and any successors thereto) with any powers of attorney and other documents necessary or appropriate to enable the Collateral Manager to carry out its servicing and administrative duties hereunder, and shall cooperate with the Collateral Manager to the fullest extent in order to ensure the collectability of the Collateral. In no event shall the Collateral Manager be entitled to make the Secured Parties, the Collateral Custodian, the Collateral Agent, the Administrative Agent or the Lender Agents a party to any litigation without such party's express prior written consent, or to make the Borrower a party to any litigation (other than any foreclosure or similar collection procedure) without the Administrative Agent's and each Lender Agent's consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the declaration of the Termination Date, at the direction of the Administrative Agent and to the extent permitted under and in compliance with Applicable Law, the Collateral Manager shall take such action as the Administrative Agent may deem necessary or advisable to enforce collection of the Collateral; *provided* that, the Administrative Agent may, at any time that a Termination Event has occurred and is continuing, notify any Obligor with respect to any Collateral of the assignment of such Collateral to the Collateral Agent, on behalf of the Secured Parties, and direct that payments of all amounts due or to become due be made directly to the Administrative Agent or any servicer, collection agent or account designated by the Collateral Agent and, upon such notification and at the expense of the Borrower, the Administrative Agent may enforce collection of any such Collateral, and adjust, settle or compromise the amount or payment thereof.

**Section 6.4. <u>Collection of Payments; Accounts</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Collection Efforts, Modification of Collateral</u>. The Collateral Manager will use its commercially reasonable efforts, on behalf of the Borrower, to collect or cause to be collected all payments called for under the terms and provisions of the Loans included in the Collateral as and when the same become due in accordance with the Collateral Management Standard. The Collateral Manager may not waive, modify or otherwise vary any provision of an item of Collateral in a manner that would impair the collectability of the Collateral or in any manner contrary to the Collateral Management Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Taxes and other Amounts</u>. The Collateral Manager will use its commercially reasonable efforts, on behalf of the Borrower, to collect all payments with respect to amounts due for Taxes, assessments and insurance premiums relating to each Loan to the extent required to be paid to the Borrower for such application under the Underlying Instruments and remit such amounts to the appropriate Governmental Authority or insurer as required by the Underlying Instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payments to Collection Account</u>. On or before the applicable Funding Date, with respect to any Loan being acquired by the Borrower on such Funding Date, the Collateral Manager shall have instructed all Obligors to make all payments in respect of the Collateral directly to the Collection Account; *provided* that, the Collateral Manager will promptly (and no later than two (2) Business Days) transfer to the Collection Account (in accordance with <u>Section</u> <u>2.10</u>) any payments received by it directly from any Obligor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Accounts</u>. Each of the parties hereto hereby agrees that (i) each Account shall be deemed to be a Securities Account and (ii) except as otherwise expressly provided herein and subject to the terms of the Securities Account Control Agreement, the Borrower shall be exclusively entitled to exercise the rights that comprise each Financial Asset held in each Account. Each of the parties hereto hereby agrees to cause the Collateral Custodian or any other Securities Intermediary that holds any money or other property for the Borrower in an Account to agree with the parties hereto that (A) the cash and other property (subject to <u>Section</u> <u>6.4(e)</u> below with respect to any property other than investment property, as defined in Section 9-102(a)(49) of the UCC) is to be treated as a Financial Asset under Article 8 of the UCC and (B) the "securities intermediary's jurisdiction" (within the meaning of Section 8-110 of the UCC) for that purpose shall be the state of New York. All securities or other property underlying any Financial Assets credited to the Accounts in the form of securities or instruments shall be registered in the name of the Securities Intermediary or if in the name of the Borrower or the Collateral Agent, Indorsed to the Securities Intermediary, Indorsed in blank, or credited to another securities account maintained in the name of the Securities Intermediary, and in no case will any Financial Asset credited to the Accounts be registered in the name of the Borrower, payable to the order of the Borrower or specially Indorsed to the Borrower, except to the extent the foregoing have been specially Indorsed to the Securities Intermediary or Indorsed in blank.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Underlying Instruments</u>. Notwithstanding any term hereof (or any term of the UCC that might otherwise be construed to be applicable to a "securities intermediary" as defined in the UCC) to the contrary, none of the Collateral Custodian nor any Securities Intermediary shall be under any duty or obligation in connection with the acquisition by the Borrower, or the grant by the Borrower to the Collateral Agent, of any Loan in the nature of a loan to examine or evaluate the sufficiency of the documents or instruments delivered to it by or on behalf of the Borrower under the related Underlying Instruments, or otherwise to examine the Underlying Instruments, in order to determine or compel compliance with any applicable requirements of or restrictions on transfer (including without limitation any necessary consents). The Collateral Custodian shall hold any Instrument delivered to it evidencing any Loan granted to the Collateral Agent hereunder as custodial agent for the Collateral Agent in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Establishment of the Collection Account</u>. The Collateral Manager shall cause to be established, on or before the Closing Date, with the Collateral Custodian, and maintained in the name of the Borrower, subject to the lien of the Collateral Agent, for the benefit of the Secured Parties, the accounts and/or sub-accounts designated as the "Collection Account" and the "CAD Collection Account" under the Securities Account Control Agreement (collectively, the "<u>Collection Account</u>"), and the Collateral Manager shall further cause to be maintained the accounts and/or sub-accounts designated as the "Principal Collection Account" and the "CAD Principal Collection Account" or the "Interest Collection Account" and the "CAD Interest Collection Account" under the Securities Account Control Agreement linked to and constituting part of the Collection Account for the purpose of segregating, within two (2) Business Days of the receipt of any Collections, Principal Collections (collectively, the "<u>Principal Collections Account</u>") and Interest Collections (collectively, the "<u>Interest Collections Account</u>"), respectively, over which the Collateral Agent, for the benefit of the Secured Parties, shall have control and from which none of the Collateral Manager nor the Borrower shall have any right of withdrawal except in accordance with <u>Section</u> <u>2.8(b)</u>. For the avoidance of doubt, a separate Collection Account shall be established for each Eligible Currency.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Adjustments</u>. If (i) the Collateral Manager makes a deposit into the Collection Account in respect of a Collection of a Loan and such Collection was received by the Collateral Manager in the form of a check that is not honored for any reason or (ii) the Collateral Manager makes a mistake with respect to the amount of any Collection and deposits an amount that is less than or more than the actual amount of such Collection, the Collateral Manager shall appropriately adjust the amount subsequently deposited into the Collection Account to reflect such dishonored check or mistake. Any Scheduled Payment in respect of which a dishonored check is received shall be deemed not to have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Establishment of the Unfunded Exposure Account</u>. The Collateral Manager shall cause to be established, on or before the Closing Date, with the Collateral Custodian, and maintained in the name of the Borrower, subject to the lien of the Collateral Agent, for the benefit of the Secured Parties, the accounts and/or sub-accounts designated as the "Unfunded Exposure Account" and the "CAD Unfunded Exposure Account" under the Securities Account Control Agreement (collectively, the "<u>Unfunded Exposure Account</u>"). For the avoidance of doubt, a separate Unfunded Exposure Account shall be established for each Eligible Currency. Funds on deposit in the Unfunded Exposure Account as of any date of determination may be withdrawn to fund draw requests of the relevant Obligors under any Delayed Draw Loan; *provided* that, until the earlier to occur of the Reinvestment Period End Date or the Termination Date, the amount withdrawn to fund such draw request shall not cause a Borrowing Base Deficiency. Any such draw request made by an Obligor, along with wiring instructions for the applicable Obligor, shall be forwarded by the Borrower or the Collateral Manager to the Administrative Agent, and the Administrative Agent shall instruct the Collateral Custodian to fund such draw request in accordance with the Underlying Instruments pertaining to such Delayed Draw Loan. As of any date of determination, any amounts on deposit in the Unfunded Exposure Account that exceed (i) the aggregate of all Unfunded Exposure Equity Amounts prior to the earlier to occur of the Reinvestment Period End Date or the Termination Date and (ii) the aggregate of all Exposure Amounts following the earlier to occur of the Reinvestment Period End Date or the Termination Date, in each case shall be transferred into the Principal Collection Account as Principal Collections. Until the occurrence of a Termination Event and no later than one Business Day following the Closing Date, to the extent there are uninvested amounts deposited in the Unfunded Exposure Account, all such amounts shall be invested in Permitted Investments selected and directed by the Collateral Manager or the Borrower (which may be by a standing order); from and after the occurrence of a Termination Event, to the extent there are uninvested amounts in the Unfunded Exposure Account, all such amounts may be invested in Permitted Investments selected and directed by the Administrative Agent. In the absence of any investment direction or selection of investments by the Collateral Manager, the Borrower or the Administrative Agent, as applicable, such amounts in the Unfunded Exposure Account shall remain uninvested.

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**Section 6.5. <u>Realization Upon Certain Loans</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Foreclosure</u>. The Collateral Manager may, in its discretion and consistent with the Collateral Management Standard and the Underlying Instruments, foreclose upon or repossess, as applicable, or otherwise comparably convert the ownership of any Related Property relating to a Loan that has become subject to any default and as to which no satisfactory arrangements can be made for collection of delinquent payments. The Collateral Manager will comply with the Collateral Management Standard and Applicable Law in realizing upon such Related Property, and employ practices and procedures including reasonable efforts consistent with the Collateral Management Standard to enforce all obligations of Obligors by foreclosing upon, repossessing and causing the sale of such Related Property at public or private sale in circumstances other than those described in the preceding sentence. Without limiting the generality of the foregoing, unless the Administrative Agent has specifically given instruction to the contrary, the Collateral Manager may cause the sale of any such Related Property to the Collateral Manager or its Affiliates for a purchase price equal to the then fair market value thereof, any such sale to be evidenced by a certificate of a Responsible Officer of the Collateral Manager delivered to the Administrative Agent setting forth the Loan, the Related Property, the sale price of the Related Property and certifying that such sale price is the fair market value of such Related Property. In any case in which any such Related Property has suffered damage, the Collateral Manager will not expend funds in connection with any repair or toward the foreclosure or repossession of such Related Property unless the Collateral Manager reasonably determines that such repair and/or foreclosure or repossession will increase the Recoveries by an amount greater than the amount of such expenses. The Collateral Manager will remit to the Collection Account the Recoveries received by the Collateral Manager in connection with the sale or disposition of Related Property relating to any Loan hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Management of REO Assets</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;(i) If, in the reasonable business judgment of the Collateral Manager, it becomes necessary to convert any Loan into an REO Asset in accordance with <u>Section</u> <u>6.5(a)</u>, the Collateral Manager shall first cause the Borrower to transfer and assign such Loan (or the portion thereof owned by the Borrower) to a Portfolio Subsidiary using a contribution agreement reasonably acceptable to the Administrative Agent. Any equity interests of the Portfolio Subsidiary acquired by the Borrower shall immediately become a part of the Collateral and be subject to the grant of a security interest under <u>Section</u> <u>9.1</u> and shall be promptly delivered to the Collateral Custodian, each undated and duly Indorsed in blank. The Portfolio Subsidiary shall be formed and operated pursuant to organizational documents reasonably acceptable to the Administrative Agent. After execution thereof, the Collateral Manager shall prevent the Portfolio Subsidiary from agreeing to any amendment or other modification of the Portfolio Subsidiary organizational documents without first obtaining the written consent of the Administrative Agent. The Collateral Manager shall manage each Portfolio Subsidiary (i) in accordance with Applicable Law, (ii) with reasonable care and diligence, (iii) in accordance with the applicable Portfolio Subsidiary's organizational, constitutional or registration documents, (iv) in accordance with the Collateral Management Standard and (v) with a view toward maximizing Recoveries on the applicable REO Asset (collectively, the "<u>REO Management Standard</u>"). The Collateral Manager will cause all "Distributable Cash" (or any comparable definition set forth in the Portfolio Subsidiary's organizational documents) to be deposited into the Collection Account within two (2) Business Days of receipt thereof.

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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;(ii) In the event that title to any Related Property is acquired on behalf of a Portfolio Subsidiary for the benefit of its equity owners in foreclosure, by deed in lieu of foreclosure or upon abandonment or reclamation from bankruptcy, the deed or certificate of sale shall be taken in the name of such Portfolio Subsidiary. The Collateral Manager shall use commercially reasonable efforts to cause each REO Asset to be managed, conserved, protected and operated solely for the purpose of its prompt disposition and 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Notwithstanding any provision to the contrary contained in this Agreement, the Borrower or the Collateral Manager shall not (and shall not permit the Portfolio Subsidiary to) obtain title to any Related Property as a result of or in lieu of foreclosure or otherwise, obtain title to any direct or indirect partnership interest in any Obligor pledged pursuant to a pledge agreement and thereby be the beneficial owner of Related Property, have a receiver of rents appointed with respect to, and shall not otherwise acquire possession of, or take any other action with respect to, any Related Property if, as a result of any such action, the Portfolio Subsidiary would be considered to hold title to, to be a "mortgagee-in-possession" of, or to be an "owner" or "operator" of, such Related Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time, or any comparable state or local Environmental Law, unless the Collateral Manager has previously determined in accordance with the REO Management Standard, based on an updated Phase I environmental assessment report generally prepared in accordance with the ASTM Phase I Environmental Site Assessment Standard E 1527-05 or similar standards, as may be amended or, with respect to residential property, a property inspection and title report, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such Related Property is in compliance in all material respects with applicable Environmental Laws; 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;(2) there are no circumstances present at such Related Property relating to the use, management or disposal of any hazardous materials for which investigation, testing, monitoring, containment, clean-up or remediation would reasonably be expected to be required by the owner, occupier or operator of the Related Property under applicable federal, state or local law or regulation.

In the event that the Phase I or other environmental assessment first obtained by the Collateral Manager with respect to Related Property indicates that such Related Property may not be in material compliance with applicable Environmental Laws or that hazardous materials may be present under conditions as described in <u>Section</u> <u>6.5(b)(iii)(2)</u> but does not definitively establish such fact, the Collateral Manager shall cause the Borrower to promptly sell the related Loan in accordance with <u>Section</u> <u>2.19</u>.

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**Section 6.6. <u>Collateral Management Compensation</u>**.

Prior to the BDC Election Date, as compensation for its servicing activities hereunder and reimbursement for its expenses, the Collateral Manager or its designee shall be entitled to receive the Collateral Management Fee to the extent of funds available therefor pursuant to the provisions of <u>Section</u> <u>2.7(2)</u>, <u>Section</u> <u>2.8(a)(1)</u> and <u>Section</u> <u>2.9(2)</u>, as applicable. On and after the BDC Election Date, the Collateral Manager or its designee shall not be entitled to receive the Collateral Management Fee from the Borrower hereunder.

**Section 6.7. <u>Payment of Certain Expenses by Collateral Manager</u>**.

The Collateral Manager shall be required to pay its expenses (excluding Liquidation Expenses incurred as a result of activities contemplated by <u>Section</u> <u>6.5(a)</u>, which shall be reimbursed by the Borrower; *provided* that, for avoidance of doubt, to the extent Liquidation Expenses relate to a Retained Interest with respect to a Loan, such Liquidation Expenses shall be allocated *pro rata* among the Borrower and the other holders of indebtedness evidenced by the Underlying Instruments) for its own account and shall not be entitled to any payment therefor other than the Collateral Management Fee.

**Section 6.8. <u>Reports</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Borrowing, Reinvestment or Repayment Notice</u>. On each Funding Date, on any termination in whole or reduction in part of the Facility Amount pursuant to <u>Section</u> <u>2.3(a)</u>, on each reduction of Advances Outstanding pursuant to <u>Section</u> <u>2.3(b)</u> and on each reinvestment of Principal Collections pursuant to <u>Section</u> <u>2.8(b)</u>, the Borrower (or the Collateral Manager on its behalf) will provide a Borrowing Notice, a Reinvestment Notice or a Repayment Notice, as applicable, and a Borrowing Base Certificate, each updated as of such date, to the Administrative Agent and each Lender Agent (with a copy to the Collateral Agent). For the avoidance of doubt, a Borrowing Base Certificate will be delivered by the Borrower (or the Collateral Manager on its behalf) on each other Measurement Date. Each Borrowing Base Certificate delivered on a Funding Date pursuant to this <u>Section</u> <u>6.8(a)</u> shall further include the Applicable Exchange Rate as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Collateral Management Report</u>. On each Reporting Date (beginning on the Reporting Date in November 2024) and each Funding Date, the Collateral Manager will provide, on behalf of the Borrower, to the Administrative Agent, each Lender Agent, the Collateral Agent and any Liquidity Bank, a monthly statement including (i) a Borrowing Base calculated as of the most recent Determination Date, (ii) the Loan Tape calculated as of the most recent Determination Date, (iii) in connection with any month in which a Payment Date occurs, amounts to be remitted pursuant to <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> or <u>Section</u> <u>2.9</u> to the applicable parties (which shall include any applicable wiring instructions of the parties receiving payment), and (iv) any other information the Collateral Manager may deem relevant with respect to any Loan (such monthly statement, a "<u>Collateral Management Report</u>"). Each Collateral Management Report shall be signed by a Responsible Officer of the Collateral Manager and the Borrower and shall be substantially in the form of <u>Exhibit</u> <u>C</u>. Each Borrowing Base Certificate delivered pursuant to this <u>Section</u> <u>6.8(b)</u> shall further include the Applicable Exchange Rate as of such date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Collateral Manager's Certificate</u>. Together with each Collateral Management Report, the Collateral Manager shall submit, on behalf of the Borrower, to the Administrative Agent, each Lender Agent, the Collateral Agent and any Liquidity Bank a certificate substantially in the form of <u>Exhibit</u> <u>I</u> (a "<u>Collateral Manager's Certificate</u>"), signed by a Responsible Officer of the Collateral Manager, which shall include a certification by such Responsible Officer that no Termination Event or Unmatured Termination Event has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Financial Statements</u>. The Collateral Manager will submit to the Administrative Agent, each Lender Agent, each Lender, the Collateral Agent and any Liquidity Bank, (i) within forty-five (45) days after the end of each of its fiscal quarters (excluding the fiscal quarter ending on the date for which consolidated audited financial statements are delivered pursuant to clause (ii) below), commencing December 31, 2024, unaudited financial statements of the Equityholder for the most recent fiscal quarter, and (ii) within ninety (90) days after the end of each fiscal year, commencing with the fiscal year ending on June 30, 2025, consolidated audited financial statements of the Equityholder, audited by a firm of nationally recognized independent public accountants, as of 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;(e) <u>Obligor Financial Statements; Valuation Reports; Other Reports</u>. The Collateral Manager will post on a password protected website maintained by the Collateral Manager to which the Administrative Agent will have access or deliver via email to the Administrative Agent, with respect to each Obligor, (i) to the extent received by the Borrower and/or the Collateral Manager pursuant to the Underlying Instruments, the complete financial reporting package with respect to such Obligor and with respect to each Loan for such Obligor (including any financial statements, management discussion and analysis, executed covenant compliance certificates and related covenant calculations with respect to such Obligor and with respect to each Loan for such Obligor) provided to the Borrower and/or the Collateral Manager monthly, quarterly or annually, as the case may be, by such Obligor, which delivery shall be made within ten (10) Business Days after receipt by the Borrower and/or the Collateral Manager as specified in the Underlying Instruments, (ii) the annual budget (along with subsequent changes thereto) with respect to such Obligor and provided to the Borrower and/or the Collateral Manager by such Obligor, which delivery shall be made within ten (10) Business Days after receipt by the Borrower and/or the Collateral Manager as specified in the Underlying Instruments, (iii) a quarterly email update to the portfolio summary prepared by the Collateral Manager with respect to such Obligor and with respect to each Loan for such Obligor, which delivery shall be made no later than twenty (20) Business Days after receipt by the Borrower of the information set forth in clause (e)(i) above and (iv) the portfolio monitoring report prepared by the Collateral Manager with respect to each Obligor on a quarterly basis, which delivery shall be made no later than ninety (90) days after the end of each calendar quarter and one hundred and fifty (150) days after the end of each fiscal year. Upon written demand by the Administrative Agent, the Collateral Manager will provide such other information as the Administrative Agent may reasonably request with respect to any Obligor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Amendments to Loans</u>. The Collateral Manager will post on a password protected website maintained by the Collateral Manager to which the Administrative Agent will have access or deliver via email to the Administrative Agent a copy of any material amendment, restatement, supplement, waiver or other modification to the Underlying Instruments of any Loan (along with any internal documents prepared by the Collateral Manager and provided to its investment committee in connection with such amendment, restatement, supplement, waiver or other modification) within ten (10) Business Days of the effectiveness of such amendment, restatement, supplement, waiver or other modification.

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**Section 6.9. <u>Annual Statement as to Compliance</u>**.

The Collateral Manager will provide to the Administrative Agent, the Collateral Agent and each Lender Agent, within ninety (90) days following the end of each fiscal year of the Collateral Manager, commencing with the fiscal year ending on June 30, 2025, a fiscal report signed by a Responsible Officer of the Collateral Manager certifying that (a) a review of the activities of the Collateral Manager, and the Collateral Manager's performance pursuant to this Agreement, for the fiscal period ending on the last day of such fiscal year has been made under such Person's supervision and (b) the Collateral Manager has performed or has caused to be performed in all material respects all of its obligations under this Agreement throughout such year and no Collateral Manager Default has occurred or, if any such Collateral Manager Default has occurred a statement describing the nature thereof and the steps being taken to remedy such Collateral Manager Default.

**Section 6.10. <u>Annual Independent Public Accountant</u><u>'</u><u>s Review of Collateral Management Reports</u>**.

The Collateral Manager will cause a firm of nationally recognized independent public accountants (who may also render other services to the Collateral Manager) to furnish to the Administrative Agent, each Lender Agent, the Collateral Custodian and the Collateral Agent, within ninety (90) days following the end of each fiscal year of the Collateral Manager, commencing with the fiscal year ending on June 30, 2025: (i) a report relating to such fiscal year to the effect that (a) such firm has reviewed certain documents and records relating to the servicing of the Collateral, and (b) based on such examination, such firm is of the opinion that the Collateral Management Reports for such year were prepared in compliance with this Agreement, except for such exceptions as it believes to be immaterial and such other exceptions as will be set forth in such firm's report and (ii) a report covering such fiscal year to the effect that such accountants have applied certain agreed-upon procedures (a copy of which procedures are attached hereto as <u>Schedule</u> <u>III</u>, it being understood that the Collateral Manager and the Administrative Agent will provide an updated <u>Schedule</u> <u>III</u> reflecting any further amendments to such <u>Schedule</u> <u>III</u> prior to the issuance of the first such agreed-upon procedures report, a copy of which shall replace the then existing <u>Schedule</u> <u>III</u>) to certain documents and records relating to the Collateral under any Transaction Document, compared the information contained in the Collateral Management Reports and the Collateral Manager's Certificates delivered during the period covered by such report with such documents and records and that no matters came to the attention of such accountants that caused them to believe that such servicing was not conducted in compliance with this <u>Article</u> <u>VI</u>, except for such exceptions as such accountants shall believe to be immaterial and such other exceptions as shall be set forth in such statement. In the event such independent public accountants require the Collateral Custodian to agree to the procedures to be performed by such firm in any of the reports required to be prepared pursuant to this <u>Section</u> <u>6.10</u>, the Collateral Manager shall direct the Collateral Custodian in writing to so agree; it being understood and agreed that the Collateral Custodian will deliver such letter of agreement in conclusive reliance upon the direction of the Collateral Manager, and the Collateral Custodian has not made any independent inquiry or investigation as to, and shall have no obligation or liability in respect of, the sufficiency, validity or correctness of such procedures.

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**Section 6.11. <u>The Collateral Manager Not to Resign</u>**.

The Collateral Manager shall not resign from the obligations and duties hereby imposed on it except upon the Collateral Manager's determination that (i) the performance of its duties hereunder is or becomes impermissible under Applicable Law and (ii) there is no reasonable action that the Collateral Manager could take to make the performance of its duties hereunder permissible under Applicable Law. Any such determination permitting the resignation of the Collateral Manager shall be evidenced as to clause (i) above by an Opinion of Counsel to such effect delivered to the Administrative Agent and each Lender Agent. No such resignation shall become effective until a Successor Collateral Manager shall have assumed the responsibilities and obligations of the Collateral Manager in accordance with <u>Section</u> <u>6.2</u>.

**Section 6.12. <u>Collateral Manager Defaults</u>**.

If any one of the following events (a "<u>Collateral Manager Default</u>") shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any failure by the Collateral Manager to make any payment, transfer or deposit into the Collection Account or Unfunded Exposure Account (including, without limitation, with respect to bifurcation and remittance of Interest Collections and Principal Collections) as required by this Agreement which continues unremedied for a period of three (3) Business Days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any failure on the part of the Collateral Manager duly to observe or perform in any material respect any other covenants or agreements of the Collateral Manager set forth in this Agreement or the other Transaction Documents to which the Collateral Manager is a party (including, without limitation, any material delegation of the Collateral Manager's duties that is not permitted by <u>Section</u> <u>6.1</u>) and the same continues unremedied for a period of thirty (30) days (if such failure can be remedied) after the earlier to occur of (i) the date on which written notice of such failure requiring the same to be remedied shall have been given to the Collateral Manager by the Administrative Agent or any Lender Agent and (ii) the date on which a Responsible Officer of the Collateral Manager acquires actual knowledge thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the failure of the Collateral Manager to make any payment when due (after giving effect to any related grace period) under one or more agreements for borrowed money to which it is a party in an aggregate amount in excess of $2,000,000, individually or in the aggregate, or the occurrence of any event or condition that has resulted in the acceleration of such recourse debt or other obligations, whether or not waived;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an Insolvency Event shall occur with respect to the Collateral Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Audax shall cease to be the Collateral Manager or Audax shall assign its rights or obligations as "Collateral Manager" hereunder to any Person without the consent of each Lender and the Administrative 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;(f) the Administrative Agent reasonably determines that the Collateral Manager has undergone a Material Adverse Effect of the type described in clauses (a) or (d) of such definition;

&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;(h) any failure by the Collateral Manager to deliver any required Collateral Management Report or other Required Reports hereunder on or before the date occurring two (2) Business Days after the date such report is required to be made or given, as the case may be, under the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the rendering against the Collateral Manager of one or more final judgments, decrees or orders for the payment of money in excess of $7,500,000 (net of any insurance proceeds), individually or in the aggregate, and the continuance of such judgment, decree or order unsatisfied and in effect for any period of more than sixty (60) consecutive days without a stay of execution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) as of any date of determination, the Assets Under Management shall fall below $2,000,000,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) any Change of Control of the Collateral Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the Collateral Manager fails to cause the Equityholder to maintain Unencumbered Liquidity in an amount equal to or greater than the Minimum Liquidity Amount; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) subject to <u>Section</u> <u>5.4(b)</u>, the dissolution, termination or liquidation in whole or in part, transfer or other disposition of all or substantially all of the assets of the Collateral Manager;

then notwithstanding anything herein to the contrary, the Administrative Agent, by written notice to the Collateral Manager (with a copy to the Collateral Custodian and Collateral Agent) (a "<u>Collateral Manager Termination Notice</u>"), may terminate all of the rights and obligations of the Collateral Manager as Collateral Manager under this Agreement.

**Section 6.13. <u>Appointment of Successor Collateral Manager</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On and after the receipt by the Collateral Manager of a Collateral Manager Termination Notice pursuant to <u>Section</u> <u>6.12</u>, the Collateral Manager shall continue to perform all servicing functions under this Agreement until the date specified in the Collateral Manager Termination Notice or otherwise specified by the Administrative Agent in writing or, if no such date is specified in such Collateral Manager Termination Notice or otherwise specified by the Administrative Agent, until a date mutually agreed upon by the Collateral Manager and the Administrative Agent and shall be entitled to receive, to the extent of funds available therefor pursuant to <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> or <u>Section</u> <u>2.9</u>, as applicable, the Collateral Management Fee therefor until such date. The Administrative Agent may at any time following delivery of a Collateral Manager Termination Notice in its sole discretion, appoint a successor collateral manager (the "<u>Successor Collateral Manager</u>"), and such Successor Collateral Manager shall

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accept its appointment by a written assumption in a form acceptable to the Administrative Agent and each Lender Agent. In the event that a Successor Collateral Manager has not accepted its appointment at the time when the Collateral Manager ceases to act as Collateral Manager, the Administrative Agent shall petition a court of competent jurisdiction to appoint any established financial institution or asset manager, having a net worth of not less than United States $50,000,000 and whose regular business includes the servicing of Collateral, as the Successor Collateral Manager hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon its appointment, the Successor Collateral Manager shall be the successor in all respects to the Collateral Manager to the Borrower with respect to servicing functions under this Agreement and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Collateral Manager by the terms and provisions hereof, and all references in this Agreement to the Collateral Manager shall be deemed to refer to the Successor Collateral Manager; *provided* that, the Successor Collateral Manager shall have (i) no liability with respect to any action performed by the terminated Collateral Manager prior to the date that the Successor Collateral Manager becomes the successor to the Collateral Manager or any claim of a third party based on any alleged action or inaction of the terminated Collateral Manager, (ii) no obligation to pay any taxes required to be paid by the Collateral Manager (*provided* that, the Successor Collateral Manager shall pay any income taxes for which it is liable), (iii) no obligation to pay any of the fees and expenses of any other party to the transactions contemplated hereby, and (iv) no liability or obligation with respect to any Collateral Manager indemnification obligations of any prior Collateral Manager, including the original Collateral Manager. The indemnification obligations of the Successor Collateral Manager upon becoming a Successor Collateral Manager, are expressly limited to those arising on account of its failure to act in good faith and with reasonable care under the circumstances. In addition, the Successor Collateral Manager shall have no liability relating to the representations and warranties of the Collateral Manager contained in <u>Article</u> <u>IV</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All authority and power granted to the Collateral Manager under this Agreement shall automatically cease and terminate upon termination of this Agreement and shall pass to and be vested in the Borrower and, without limitation, the Borrower is hereby authorized and empowered to execute and deliver, on behalf of the Collateral Manager, as attorney-in-fact or otherwise, all documents and other instruments, and to do and accomplish all other acts or things necessary or appropriate to effect the purposes of such transfer of servicing rights. The Collateral Manager agrees to cooperate with the Borrower in effecting the termination of the responsibilities and rights of the Collateral Manager to conduct servicing of the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything contained in this Agreement to the contrary, a Successor Collateral Manager is authorized to accept and rely on all of the accounting, records (including computer records) and work of the prior Collateral Manager relating to the Loans (collectively, the "<u>Predecessor Collateral Manager Work Product</u>") without any audit or other examination thereof, and such Successor Collateral Manager shall have no duty, responsibility, obligation or liability for the acts and omissions of the prior Collateral Manager. If any error, inaccuracy, omission or incorrect or non-standard practice or procedure (collectively, "<u>Errors</u>") exist in any Predecessor Collateral Manager Work Product and such Errors make it materially more difficult to service or should cause or materially contribute to the Successor Collateral Manager making or continuing any Errors (collectively, "<u>Continued Errors</u>"), such Successor

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Collateral Manager shall have no duty, responsibility, obligation or liability for such Continued Errors; *provided* that, such Successor Collateral Manager agrees to use its best efforts to prevent further Continued Errors. In the event that the Successor Collateral Manager becomes aware of Errors or Continued Errors, it shall, with the prior consent of the Administrative Agent, use its best efforts to reconstruct and reconcile such data as is commercially reasonable to correct such Errors and Continued Errors and to prevent future Continued Errors.

**ARTICLE VII.** 

**THE COLLATERAL AGENT** 

**Section 7.1. <u>Designation of the Collateral Agent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Collateral Agent</u>. Each of the Borrower, the Lender Agents and the Administrative Agent hereby designate and appoint the Collateral Agent to act as its agent for the purposes of perfection of a security interest in the Collateral and hereby authorizes the Collateral Agent to take such actions on its behalf and on behalf of each of the Secured Parties and to exercise such powers and perform such duties as are expressly granted to the Collateral Agent by this Agreement. The Collateral Agent hereby accepts such agency appointment to act as Collateral Agent pursuant to the terms of this Agreement, until its resignation or removal as Collateral Agent pursuant to the terms hereof. The Collateral Agent's services hereunder shall be conducted through its Corporate Trust Services division (including, as applicable, any agents or Affiliates utilized thereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Successor Collateral Agent</u>. Upon the Collateral Agent's receipt of Collateral Agent Termination Notice from the Administrative Agent of the designation of a successor Collateral Agent pursuant to the provisions of <u>Section</u> <u>7.5</u>, the Collateral Agent agrees that it will terminate its activities as Collateral Agent hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Secured Party</u>. The Administrative Agent, the Lender Agents and the Lenders hereby appoint Computershare, in its capacity as Collateral Agent hereunder, as their agent for the purposes of perfection of a security interest in the Collateral. Computershare, in its capacity as Collateral Agent hereunder, hereby accepts such appointment and agrees to perform the duties set forth in <u>Section</u> <u>7.2(b)</u>.

**Section 7.2. <u>Duties of the Collateral Agent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Appointment</u>. The Borrower, the Lender Agents and the Administrative Agent, as agent for the Secured Parties, each hereby appoints Computershare to act as Collateral Agent, for the benefit of the Secured Parties, as from time to time designated pursuant to <u>Section</u> <u>7.1</u>. The Collateral Agent hereby accepts such appointment and agrees to perform the duties and obligations with respect thereto set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Duties</u>. From the Closing Date, and until its removal pursuant to <u>Section</u> <u>7.5</u>, the Collateral Agent shall perform, on behalf of the Administrative Agent and the Secured Parties, the following duties and obligations.

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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;(i) The Collateral Agent shall re-calculate (based solely on information provided to the Collateral Agent by the Collateral Manager) amounts to be remitted pursuant to <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</u> to the applicable parties and notify the Collateral Manager and the Administrative Agent in the event of any discrepancy between the Collateral Agent's calculations and the Collateral Management Report (such dispute to be resolved in accordance with <u>Section</u> <u>2.20</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;(ii) The Collateral Agent shall make payments pursuant to the terms of the Collateral Management Report or as otherwise directed in accordance with <u>Sections</u> <u>2.7</u>, <u>2.8</u> and <u>2.9</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;(iii) In no instance shall the Collateral Agent be under any duty or obligation to take any action on behalf of the Collateral Manager in respect of the exercise of any voting or consent rights, or similar actions, unless it receives specific written instructions from the Collateral Manager, prior to the occurrence of a Termination Event or the Administrative Agent, after the occurrence of a Termination Event, in which event the Collateral Agent shall vote, consent or take such other action in accordance with such instructions. The Collateral Agent shall have no responsibility to monitor the availability of any benchmark rates, nor the occurrence of any Benchmark Transition Event, but may, as to such matters, rely conclusively upon notice from the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) The Administrative Agent, each Lender Agent and each Secured Party further authorizes the Collateral Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Transaction Documents as are expressly delegated to the Collateral Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. In furtherance, and without limiting the generality of the foregoing, each Secured Party hereby appoints the Collateral Agent (acting at the direction of the Administrative Agent) as its agent to execute and deliver all further instruments and documents, and take all further action that the Administrative Agent deems necessary or desirable in order to perfect, protect or more fully evidence the security interests granted by the Borrower hereunder, or to enable any of them to exercise or enforce any of their respective rights hereunder, including, without limitation, the execution by the Collateral Agent as secured party/assignee of such financing or continuation statements, or amendments thereto or assignments thereof, relative to all or any of the Loans now existing or hereafter arising, and such other instruments or notices, as may be necessary or appropriate for the purposes stated hereinabove. Nothing in this <u>Section</u> <u>7.2(c)</u> shall be deemed to relieve the Borrower or the Collateral Manager of their respective obligations to protect the interest of the Collateral Agent (for the benefit of the Secured Parties) in the Collateral, including to file financing and continuation statements in respect of the Collateral in accordance with <u>Section</u> <u>5.1(f)</u> and <u>Section</u> <u>5.3(e)</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;(ii) The Administrative Agent may direct the Collateral Agent to take any such incidental action hereunder. With respect to other actions which are incidental to the actions specifically delegated to the Collateral Agent hereunder, the Collateral Agent shall not be required to take any such incidental action hereunder, but shall be required to act or to refrain from acting (and shall be fully protected in acting or refraining from acting) upon the direction of the Administrative Agent; *provided* that, the Collateral Agent shall not be required to take any action hereunder at the request of the Administrative Agent,

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any Secured Party or otherwise if the taking of such action, in the reasonable determination of the Collateral Agent, (x) shall be in violation of any Applicable Law or contrary to any provisions of this Agreement or (y) shall expose the Collateral Agent to liability hereunder or otherwise (unless it has received indemnity which it reasonably deems to be satisfactory with respect thereto). In the event the Collateral Agent requests the consent of the Administrative Agent and the Collateral Agent does not receive a consent (either positive or negative) from the Administrative Agent within ten (10) Business Days of its receipt of such request, then the Administrative Agent shall be deemed to have declined to consent to the relevant 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;(iii) Except as expressly provided herein, the Collateral Agent shall not be under any duty or obligation to take any affirmative action to exercise or enforce any power, right or remedy available to it under this Agreement (x) unless and until (and to the extent) expressly so directed by the Administrative Agent or (y) prior to the Termination Date (and upon such occurrence, the Collateral Agent shall act in accordance with the written instructions of the Administrative Agent pursuant to clause (x)). The Collateral Agent shall not be liable for any action taken, suffered or omitted by it in accordance with the request or direction of any Secured Party, to the extent that this Agreement provides such Secured Party the right to so direct the Collateral Agent, or the Administrative Agent. The Collateral Agent shall not be deemed to have notice or knowledge of any matter hereunder, including a Termination Event, unless a Responsible Officer of the Collateral Agent has actual knowledge of such matter or written notice thereof is received by the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In no instance shall the Collateral Agent be under any duty or obligation to take any action on behalf of the Collateral Manager in respect of the exercise of any voting or consent rights, or similar actions, unless it receives specific written instructions from the Collateral Manager, prior to the occurrence of an Event of Default or the Administrative Agent, after the occurrence of an Event of Default, in which event the Collateral Agent shall vote, consent or take such other action in accordance with such instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, in performing its duties under this Agreement, the Collateral Agent is required to decide between alternative courses of action, the Collateral Agent may request written instructions from the Administrative Agent as to the course of action desired by it. If the Collateral Agent does not receive such instructions within two (2) Business Days after it has requested them, the Collateral Agent may, but shall be under no duty to, take or refrain from taking any such courses of action. The Collateral Agent shall act in accordance with instructions received after such two (2) Business Day period except to the extent it has already, in good faith, taken or committed itself to take, action inconsistent with such instructions. The Collateral Agent shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance with such advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Concurrently herewith, the Administrative Agent directs the Collateral Agent and the Collateral Agent is authorized to enter into the Securities Account Control Agreement. For the avoidance of doubt, all of the Collateral Agent's rights, protections and immunities provided herein shall apply to the Collateral Agent for any actions taken or omitted to be taken under the Securities Account Control Agreement in such capacity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The parties hereto acknowledge that, in accordance with laws, regulations and executive orders of the United States or any state or political subdivision thereof as are in effect from time to time applicable to financial institutions relating to the funding of terrorist activities and money laundering, including, without limitation, the Customer Identification Program requirements under the USA PATRIOT Act and its implementing regulations, the Collateral Agent in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Collateral Agent. The Borrower hereby agrees that it shall provide the Collateral Agent with such information as it may request, including the Borrower's name, physical address, tax identification number and other information, that will help the Collateral Agent to identify and verify the Borrower's identity (and, in certain circumstances, the beneficial owners thereof), such as organizational documents, certificate of good standing, license to do business, or other pertinent identifying information.

**Section 7.3. <u>Merger or Consolidation</u>**.

Any Person (i) into which the Collateral Agent may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Collateral Agent shall be a party, or (iii) that may succeed to the properties and assets of the Collateral Agent substantially as a whole, which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Collateral Agent hereunder, shall be the successor to the Collateral Agent under this Agreement without further act on the part of any of the parties to this Agreement provided such Person is 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), and (a) has either (1) a long-term unsecured debt rating of "A" or better by S&P and "A2" or better by Moody's or (2) a short-term unsecured debt rating or certificate of deposit rating of "A-1" or better by S&P or "P-1" or better by Moody's, (b) the parent corporation which has either (1) a long-term unsecured debt rating of "A" or better by S&P and "A2" or better by Moody's or (2) a short-term unsecured debt rating or certificate of deposit rating of "A-1" or better by S&P and "P-1" or better by Moody's or (c) is otherwise acceptable to the Administrative Agent.

**Section 7.4. <u>Collateral Agent Compensation</u>**.

As compensation for its Collateral Agent activities hereunder, the Collateral Agent shall be entitled to receive the Collateral Agent and Portfolio Administration Fee to the extent of funds available therefor pursuant to <u>Section</u> <u>2.7(1)</u>, <u>Section</u> <u>2.8(a)(1)</u> and <u>Section</u> <u>2.9(1)</u>, as applicable. The Collateral Agent's entitlement to receive the Collateral Agent and Portfolio Administration Fee shall cease (excluding any unpaid outstanding amounts as of that date) on the earliest to occur of: (i) its removal as Collateral Agent pursuant to <u>Section</u> <u>7.5</u>, (ii) its resignation as Collateral Agent pursuant to <u>Section</u> <u>7.7</u> or (iii) the termination of this Agreement.

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**Section 7.5. <u>Collateral Agent Removal</u>**.

The Collateral Agent may be removed, with or without cause, by the Administrative Agent by thirty (30) days' notice given in writing to the Collateral Agent (the "<u>Collateral Agent Termination Notice</u>"); *provided* that, notwithstanding its receipt of a Collateral Agent Termination Notice, the Collateral Agent shall continue to act in such capacity until a successor Collateral Agent has been appointed and has agreed to act as Collateral Agent hereunder; *provided further* that, the Collateral Agent shall continue to receive compensation of its fees and expenses in accordance with <u>Section</u> <u>7.4</u> above while so serving as the Collateral Agent prior to a successor Collateral Agent being appointed.

**Section 7.6. <u>Limitation on Liability</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Collateral Agent may conclusively rely on and shall be fully protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or other document delivered to it and that in good faith it reasonably believes to be genuine and that has been signed by the proper party or parties. The Collateral Agent may rely conclusively on and shall be fully protected in acting upon (i) the written instructions of any designated officer of the Administrative Agent or (ii) the verbal instructions of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Collateral Agent may consult counsel satisfactory to it and the advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice or opinion of such counsel. The Collateral Agent may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys.

&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 not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith, or for any mistakes of fact or law, or for anything that it may do or refrain from doing in connection herewith except in the case of its willful misconduct or grossly negligent performance or omission of its duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Collateral Agent makes no warranty or representation and shall have no responsibility (except as expressly set forth in this Agreement) as to the content, enforceability, completeness, validity, sufficiency, value, genuineness, ownership or transferability of the Collateral, and will not be required to and will not make any representations as to the validity or value (except as expressly set forth in this Agreement) of any of the Collateral. The Collateral Agent shall not be obligated to take any legal action hereunder that might in its judgment involve any expense or liability unless it has been furnished with an indemnity reasonably satisfactory to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Collateral Agent shall have no duties or responsibilities except such duties and responsibilities as are specifically set forth in this Agreement and no covenants or obligations shall be implied in this Agreement against the Collateral Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Collateral Agent shall not be required to expend or risk its own funds in the performance of its duties 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;(g) It is expressly agreed and acknowledged that the Collateral Agent is not overseeing or guaranteeing performance of or assuming any liability for the obligations of the other parties hereto or any parties to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject in all cases to the last sentence of <u>Section</u> <u>2.20</u>, in case any reasonable question arises as to its duties hereunder, the Collateral Agent may, prior to the occurrence of a Termination Event or the Termination Date, request instructions from the Collateral Manager and may, after the occurrence of a Termination Event or the Termination Date, request instructions from the Administrative Agent, and shall be entitled at all times to refrain from taking any action unless it has received instructions from the Collateral Manager or the Administrative Agent, as applicable. The Collateral Agent shall in all events have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction of the Administrative Agent. In no event shall the Collateral Agent be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Agent has been advised of the likelihood of such loss or damage 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;(i) The Collateral Agent shall not be liable for the acts or omissions of the Collateral Custodian under this Agreement and shall not be required to monitor the performance of the Collateral Custodian. Notwithstanding anything herein to the contrary, the Collateral Agent shall have no duty to perform any of the duties of the Collateral Custodian under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) It is expressly acknowledged by the parties hereto that application and performance by the Collateral Agent of its various duties hereunder (including, without limitation, recalculations to be performed in respect of the matters contemplated hereby) shall be based upon, and in reliance upon, data, information and notice provided to it by the Collateral Manager, the Administrative Agent, the Borrower and/or any related bank agent, obligor or similar party with respect to the Loan, and the Collateral Agent shall have no responsibility for the accuracy of any such information or data provided to it by such persons and shall be entitled to update its records (as it may deem necessary or appropriate).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In no event shall the Collateral Agent be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action (including any laws, ordinances, regulations), strikes, lockouts, loss or malfunctions of utilities, computer (hardware or software) or communications services, labor disputes, disease, epidemic, pandemic, quarantine, national emergency, or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility, or the like that delay, restrict or prohibit the providing of services by the Collateral Agent as contemplated by this Agreement.

**Section 7.7. <u>Collateral Agent Resignation</u>**.

The Collateral Agent may resign at any time by giving not less than ninety (90) days written notice thereof to the Administrative Agent and with the consent of the Administrative Agent, which consent shall not be unreasonably withheld. Upon receiving such notice of resignation, the Administrative Agent shall promptly appoint a successor collateral agent or collateral agents by

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written instrument, in duplicate, executed by the Administrative Agent, one copy of which shall be delivered to the Collateral Agent so resigning and one copy to the successor collateral agent or collateral agents, together with a copy to each of the Borrower, Collateral Manager and Collateral Custodian. If no successor collateral agent shall have been appointed and an instrument of acceptance by a successor Collateral Agent shall not have been delivered to the Collateral Agent within forty-five (45) days after the giving of such notice of resignation, the resigning Collateral Agent may petition any court of competent jurisdiction for the appointment of a successor Collateral Agent. Notwithstanding anything herein to the contrary, the Collateral Agent may not resign prior to a successor Collateral Agent being appointed.

**ARTICLE VIII.** 

**THE COLLATERAL CUSTODIAN** 

**Section 8.1. <u>Designation of Collateral Custodian</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Initial Collateral Custodian</u>. The role of Collateral Custodian with respect to the Required Loan Documents shall be conducted by the Person designated as Collateral Custodian hereunder from time to time in accordance with this <u>Section</u> <u>8.1</u>. Each of the Borrower, the Lender Agents and the Administrative Agent hereby designates and appoints the Collateral Custodian to act as its agent and hereby authorizes the Collateral Custodian to take such actions on its behalf and to exercise such powers and perform such duties as are expressly granted to the Collateral Custodian by this Agreement. The Collateral Custodian hereby accepts such agency appointment to act as Collateral Custodian pursuant to the terms of this Agreement, until its resignation or removal as Collateral Custodian pursuant to the terms hereof. The Collateral Custodian's services hereunder shall be conducted through its CCT division (including, as applicable, any agents or Affiliates utilized thereby).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Successor Collateral Custodian</u>. Upon the Collateral Custodian's receipt of a Collateral Custodian Termination Notice from the Administrative Agent of the designation of a successor Collateral Custodian pursuant to the provisions of <u>Section</u> <u>8.5</u>, the Collateral Custodian agrees that it will terminate its activities as Collateral Custodian hereunder.

**Section 8.2. <u>Duties of Collateral Custodian</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Appointment</u>. The Borrower, the Lender Agents and the Administrative Agent each hereby appoints Computershare to act as Collateral Custodian, for the benefit of the Secured Parties. The Collateral Custodian hereby accepts such appointment and agrees to perform the duties and obligations with respect thereto set forth 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;(b) <u>Duties</u>. From the Closing Date, and until its removal pursuant to <u>Section</u> <u>8.5</u>, the Collateral Custodian shall perform, on behalf of the Administrative Agent and the Secured Parties, the following duties and obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Collateral Custodian shall take and retain custody of the Required Loan Documents delivered by the Borrower pursuant to <u>Section</u> <u>3.2</u> hereof in accordance with the terms and conditions of this Agreement, all for the benefit of the Secured Parties. Within five (5) Business Days of its receipt of any Required Loan Documents and the related Loan Checklist, the Collateral Custodian shall review the Required Loan Documents to confirm that (A) the Obligor name matches the Loan Checklist, (B) such Required Loan Documents, if applicable, have been executed by the parties thereto (either the original or a copy, as indicated on the Loan Checklist) and have no missing or mutilated pages, (C) each item listed in the Loan Checklist has been provided to the Collateral Custodian, and (D) the related original Loan balance (based on a comparison to the note or assignment agreement, as applicable), is greater than or equal to the loan balance listed on the related Loan Tape (such items (A) through (D) collectively, the "<u>Review Criteria</u>"). In order to facilitate the foregoing review by the Collateral Custodian, in connection with each delivery of Required Loan Documents hereunder to the Collateral Custodian, the Collateral Manager shall provide to the Collateral Custodian a hard copy (which may be preceded by an electronic copy, as applicable) of the related Loan Checklist which contains the Loan information with respect to the Required Loan Documents being delivered, identification number and the name of the Obligor with respect to each Loan. Notwithstanding anything herein to the contrary, the Collateral Custodian's obligation to review the Required Loan Documents shall be limited to reviewing such Required Loan Documents based on the information provided on the Loan Checklist. If, at the conclusion of such review, (1) the Collateral Custodian is unable to confirm clauses (A) or (D) of the Review Criteria, the Collateral Custodian shall notify the Administrative Agent and the Collateral Manager of such discrepancy within one (1) Business Day, or (2) any other Review Criteria is not satisfied, the Collateral Custodian shall within one (1) Business Day notify the Collateral Manager of such determination and provide the Collateral Manager with a list of the non-complying Loans and the applicable Review Criteria that they fail to satisfy. The Collateral Manager shall have ten (10) Business Days to correct any non-compliance with any Review Criteria. If after the conclusion of such time period the Collateral Manager has still not cured any non-compliance by a Loan with any Review Criteria, the Collateral Custodian shall promptly notify the Borrower and the Administrative Agent of such determination by providing a written report to such persons identifying, with particularity, each Loan and each of the applicable Review Criteria that such Loan fails to satisfy. In addition, if requested in writing in the form of <u>Exhibit</u> <u>G</u> by the Collateral Manager and approved by the Administrative Agent within ten (10) Business Days of the Collateral Custodian's delivery of such report, the Collateral Custodian shall return any Loan which fails to satisfy a Review Criteria to the Borrower. Other than the foregoing, the Collateral Custodian shall not have any responsibility for reviewing any Required Loan 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;(ii) In taking and retaining custody of the Required Loan Documents, the Collateral Custodian shall be deemed to be acting as the agent of the Secured Parties; *provided* that, the Collateral Custodian makes no representations as to the existence, perfection or priority of any Lien on the Required Loan Documents or the instruments therein; *provided further* that, the Collateral Custodian's duties shall be limited to those expressly contemplated 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) All Required Loan Documents shall be kept in fire resistant vaults, rooms or cabinets at the address of the Collateral Custodian located at 1505 Energy Park Drive, St. Paul, MN 55108, or at such other office as shall be specified to the Administrative Agent and the Collateral Manager by the Collateral Custodian in a written notice delivered at least thirty (30) days prior to such change. All Required Loan Documents shall be placed together with an appropriate identifying label and maintained in such a manner so as to permit retrieval and access. The Collateral Custodian shall clearly segregate the Required Loan Documents on its inventory system and will not commingle the physical Required Loan Documents with any other files of the Collateral Custodian other than those, if any, relating to Audax and its Affiliates and its Subsidiaries; *provided* that, the Collateral Custodian shall segregate any commingled files upon written request of the Administrative Agent and the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) On each Reporting Date, the Collateral Custodian shall provide a written report to the Administrative Agent and the Collateral Manager (in a form mutually agreeable to the Administrative Agent and the Collateral Custodian) identifying each Loan for which it holds Required Loan Documents and the applicable Review Criteria that any Loan fails to satisfy.

&nbsp;&nbsp;&nbsp;&nbsp;&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) Notwithstanding any provision to the contrary elsewhere in the Transaction Documents, the Collateral Custodian shall not have any fiduciary relationship with any party hereto or any Secured Party in its capacity as such, and no implied covenants, functions, obligations or responsibilities shall be read into this Agreement, the other Transaction Documents or otherwise exist against the Collateral Custodian. Without limiting the generality of the foregoing, it is hereby expressly agreed and stipulated by the other parties hereto that the Collateral Custodian shall not be required to exercise any discretion hereunder and shall have no investment or management responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) If, in performing its duties under this Agreement, the Collateral Custodian is required to decide between alternative courses of action, the Collateral Custodian may request written instructions from the Collateral Manager as to the course of action desired by the Collateral Manager; *provided* that if a Termination Event or Unmatured Termination Event occurs and is continuing, the Collateral Custodian shall request written instructions from the Administrative Agent. If the Collateral Custodian does not receive such instructions within two (2) Business Days after it has requested them, the Collateral Custodian may, but shall be under no duty to, take or refrain from taking any such courses of action. The Collateral Custodian shall act in accordance with instructions received after such two (2) Business Day period except to the extent it has already, in good faith, taken or committed itself to take, action inconsistent with such instructions. The Collateral Custodian shall be entitled to rely on the advice of legal counsel and independent accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance with such advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) The Collateral Custodian agrees to cooperate with the Administrative Agent and the Collateral Agent and deliver any Required Loan Documents to the Collateral Agent or Administrative Agent (pursuant to a written request in the form of <u>Exhibit</u> <u>G</u>), as applicable, as requested in order to take any action that the Administrative Agent deems necessary or desirable in order to perfect, protect or more fully evidence the security interests granted by the Borrower hereunder, or to enable any of them to exercise or enforce any of their respective rights hereunder, including any rights arising with respect to <u>Article</u> <u>X</u>. In the event the Collateral Custodian receives instructions from the Collateral Agent, the Collateral Manager or the Borrower which conflict with any instructions received by the Administrative Agent, the Collateral Custodian shall rely on and follow the instructions given by the Administrative 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;(ii) The Administrative Agent may direct the Collateral Custodian to take any such incidental action hereunder. With respect to other actions which are incidental to the actions specifically delegated to the Collateral Custodian hereunder, the Collateral Custodian shall not be required to take any such incidental action hereunder, but shall be required to act or to refrain from acting (and shall be fully protected in acting or refraining from acting) upon the direction of the Administrative Agent; *provided* that, the Collateral Custodian shall not be required to take any action hereunder at the request of the Administrative Agent, any Secured Party or otherwise if the taking of such action, in the reasonable determination of the Collateral Custodian, (x) shall be in violation of any Applicable Law or contrary to any provisions of this Agreement or (y) shall expose the Collateral Custodian to liability hereunder or otherwise (unless it has received indemnity which it reasonably deems to be satisfactory with respect thereto). In the event the Collateral Custodian requests the consent of the Administrative Agent and the Collateral Custodian does not receive a consent (either positive or negative) from the Administrative Agent within ten (10) Business Days of its receipt of such request, then the Administrative Agent shall be deemed to have declined to consent to the relevant 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;(iii) The Collateral Custodian shall not be liable for any action taken, suffered or omitted by it in accordance with the request or direction of any Secured Party, to the extent that this Agreement provides such Secured Party the right to so direct the Collateral Custodian, or the Administrative Agent. The Collateral Custodian shall not be deemed to have notice or knowledge of any matter hereunder, including a Termination Event, unless a Responsible Officer of the Collateral Custodian has actual knowledge of such matter or written notice thereof is received by the Collateral Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The parties hereto acknowledge that, in accordance with laws, regulations and executive orders of the United States or any state or political subdivision thereof as are in effect from time to time applicable to financial institutions relating to the funding of terrorist activities and money laundering, including, without limitation, the Customer Identification Program requirements under the USA PATRIOT Act and its implementing regulations, the Collateral Custodian in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Collateral Custodian. The Borrower hereby agrees that it shall provide the Collateral Custodian with such information as it may request, including the Borrower's name, physical address, tax identification number and other information, that will help the Collateral Custodian to identify and verify the Borrower's identity (and, in certain circumstances, the beneficial owners thereof), such as organizational documents, certificate of good standing, license to do business, or other pertinent identifying information.

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**Section 8.3. <u>Merger or Consolidation</u>**.

Any Person (i) into which the Collateral Custodian may be merged or consolidated, (ii) that may result from any merger or consolidation to which the Collateral Custodian shall be a party, or (iii) that may succeed to the properties and assets of the Collateral Custodian substantially as a whole, which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Collateral Custodian hereunder, shall be the successor to the Collateral Custodian under this Agreement without further act of any of the parties to this Agreement.

**Section 8.4. <u>Collateral Custodian Compensation</u>**.

As compensation for its collateral custodian activities hereunder, the Collateral Custodian shall be entitled to a Collateral Agent and Portfolio Administration Fee pursuant to the provision of <u>Section</u> <u>2.7(1)</u>, <u>Section</u> <u>2.8(a)(1)</u> or <u>Section</u> <u>2.9(1)</u>, as applicable. The Collateral Custodian's entitlement to receive the Collateral Agent and Portfolio Administration Fee shall cease (excluding any unpaid outstanding amounts as of that date) on the earlier to occur of: (i) its removal as Collateral Custodian pursuant to <u>Section</u> <u>8.5</u>, (ii) its resignation as Collateral Custodian pursuant to <u>Section</u> <u>8.7</u> or (iii) the termination of this Agreement.

**Section 8.5. <u>Collateral Custodian Removal</u>**.

The Collateral Custodian may be removed, with or without cause, by the Administrative Agent by thirty (30) days' notice given in writing to the Collateral Custodian (the "<u>Collateral Custodian Termination Notice</u>"); *provided* that, notwithstanding its receipt of a Collateral Custodian Termination Notice, the Collateral Custodian shall continue to act in such capacity until a successor Collateral Custodian has been appointed, has agreed to act as Collateral Custodian hereunder, and has received all Required Loan Documents held by the previous Collateral Custodian.

**Section 8.6. <u>Limitation on Liability</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Collateral Custodian may conclusively rely on and shall be fully protected in acting upon any certificate, instrument, opinion, notice, letter, telegram or other document delivered to it and that in good faith it reasonably believes to be genuine and that has been signed by the proper party or parties. The Collateral Custodian may rely conclusively on and shall be fully protected in acting upon (a) the written instructions of any designated officer of the Administrative Agent or (b) the verbal instructions of the Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Collateral Custodian may consult counsel satisfactory to it and the advice or opinion of such counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in accordance with the advice or opinion of such counsel. The Collateral Custodian may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Collateral Custodian shall not be liable for any error of judgment, or for any act done or step taken or omitted by it, in good faith, or for any mistakes of fact or law, or for anything that it may do or refrain from doing in connection herewith except in the case of its willful misconduct or grossly negligent performance or omission of its duties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Collateral Custodian makes no warranty or representation and shall have no responsibility (except as expressly set forth in this Agreement) as to the content, enforceability, completeness, validity, sufficiency, value, genuineness, ownership or transferability of the Collateral, and will not be required to and will not make any representations as to the validity or value (except as expressly set forth in this Agreement) of any of the Collateral. The Collateral Custodian shall not be obligated to take any legal action hereunder that might in its judgment involve any expense or liability unless it has been furnished with an indemnity reasonably satisfactory to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Collateral Custodian shall have no duties or responsibilities except such duties and responsibilities as are specifically set forth in this Agreement and no covenants or obligations shall be implied in this Agreement against the Collateral Custodian.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Collateral Custodian shall not be required to expend or risk its own funds in the performance of its duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Collateral Custodian shall not be liable for the acts or omissions of the Collateral Agent under this Agreement and shall not be required to monitor the performance of the Collateral Agent. Notwithstanding anything herein to the contrary, the Collateral Custodian in such capacity shall have no duty to perform any of the duties of the Collateral Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) It is expressly agreed and acknowledged that the Collateral Custodian is not overseeing or guaranteeing performance of or assuming any liability for the obligations of the other parties hereto or any parties to the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject in all cases to the last sentence of <u>Section</u> <u>8.2(c)(i)</u>, in case any reasonable question arises as to its duties hereunder, the Collateral Custodian may, prior to the occurrence of a Termination Event or the Termination Date, request instructions from the Collateral Manager and may, after the occurrence of a Termination Event or the Termination Date, request instructions from the Administrative Agent, and shall be entitled at all times to refrain from taking any action unless it has received instructions from the Collateral Manager or the Administrative Agent, as applicable. The Collateral Custodian shall in all events have no liability, risk or cost for any action taken pursuant to and in compliance with the instruction of the Administrative Agent. In no event shall the Collateral Custodian be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Custodian has been advised of the likelihood of such loss or damage 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;(j) It is expressly acknowledged by the parties hereto that application and performance by the Collateral Custodian of its various duties hereunder (including recalculations to be performed in respect of the matters contemplated hereby) shall be based upon, and in reliance upon, data, information, and notices provided to it by the Collateral Manager, the Administrative Agent, the Borrower and/or any related bank agent, obligor or similar party, and the Collateral Custodian shall have no responsibility for the accuracy of any such information or data provided to it by such Persons and shall be entitled to update its records (as it may deem necessary or appropriate).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) In no event shall the Collateral Custodian be liable for any failure or delay in the performance of its obligations hereunder because of circumstances beyond its control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action (including any laws, ordinances, or regulations) strikes, lockouts, loss or malfunctions of utilities, computer (hardware or software) or communications services, labor disputes, disease, epidemic, pandemic, quarantine, national emergency or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility, or the like that delay, restrict or prohibit the providing of services by the Collateral Custodian as contemplated by this Agreement.

**Section 8.7. <u>The Collateral Custodian Resignation</u>**.

The Collateral Custodian may resign and be discharged from its duties or obligations hereunder, not earlier than ninety (90) days after delivery to the Administrative Agent of written notice of such resignation specifying a date when such resignation shall take effect. Upon the effective date of such resignation, or if the Administrative Agent gives Collateral Custodian written notice of an earlier termination hereof, Collateral Custodian shall (i) be reimbursed for any costs and expenses Collateral Custodian shall incur in connection with the termination of its duties under this Agreement and (ii) deliver all of the Required Loan Documents in the possession of Collateral Custodian to the Administrative Agent or to such Person as the Administrative Agent may designate to Collateral Custodian in writing upon the receipt of a request in the form of <u>Exhibit</u> <u>G</u>; *provided* that, the Borrower shall consent to any successor Collateral Custodian appointed by the Administrative Agent (such consent not to be unreasonably withheld). If no successor Collateral Custodian shall have been appointed and an instrument of acceptance by a successor Collateral Custodian shall not have been delivered to the Collateral Custodian within 45 days after the giving of such notice of resignation, the resigning Collateral Custodian may petition any court of competent jurisdiction for the appointment of a successor Collateral Custodian. Notwithstanding anything herein to the contrary, the Collateral Custodian may not resign prior to a successor Collateral Custodian being appointed.

**Section 8.8. <u>Release of Documents</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Release for Servicing</u>. From time to time and as appropriate for the enforcement or servicing of any of the Collateral, the Collateral Custodian is hereby authorized (unless and until such authorization is revoked by the Administrative Agent), upon written receipt from the Collateral Manager of a request for release of documents and receipt in the form annexed hereto as <u>Exhibit</u> <u>G</u>, to release to the Collateral Manager within two (2) Business Days of receipt of such request, the related Required Loan Documents or the documents set forth in such request and receipt to the Collateral Manager. All documents so released to the Collateral Manager shall be held by the Collateral Manager in trust for the benefit of the Collateral Agent, on behalf of the Secured Parties in accordance with the terms of this Agreement. The Collateral Manager shall return to the Collateral Custodian the Required Loan Documents or other such documents (i) promptly upon the request of the Administrative Agent, or (ii) when the Collateral Manager's need therefor in connection with such foreclosure or servicing no longer exists, unless the Loan shall be liquidated, in which case, the Collateral Manager shall deliver an additional request for release of documents to the Collateral Custodian and receipt certifying such liquidation from the Collateral Manager to the Collateral Custodian, all in the form annexed hereto as <u>Exhibit</u> <u>G</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;(b) <u>Limitation on Release</u>. The foregoing provision with respect to the release to the Collateral Manager of the Required Loan Documents and documents by the Collateral Custodian upon request by the Collateral Manager shall be operative only to the extent that the Administrative Agent has consented to such release. Promptly after delivery to the Collateral Custodian of any request for release of documents, the Collateral Manager shall provide notice of the same to the Administrative Agent. Any additional Required Loan Documents or documents requested to be released by the Collateral Manager may be released only upon written authorization of the Administrative Agent. The limitations of this paragraph shall not apply to the release of Required Loan Documents to the Collateral Manager pursuant to the immediately succeeding subsection.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Release for Payment</u>. Upon receipt by the Collateral Custodian of the Collateral Manager's request for release of documents and receipt in the form annexed hereto as <u>Exhibit</u> <u>G</u> (which certification shall include a statement to the effect that all amounts received in connection with such payment or repurchase have been credited to the Collection Account as provided in this Agreement), the Collateral Custodian shall promptly release the related Required Loan Documents to the Collateral Manager; *provided* that, the Collateral Custodian shall release the Required Loan Documents related to any REO Asset to the Collateral Manager in connection with the Collateral Manager's exercise of remedies thereon promptly upon the Collateral Manager's request.

**Section 8.9. <u>Return of Required Loan Documents</u>**.

The Borrower may, with the prior written consent of the Administrative Agent (such consent not to be unreasonably withheld), require that the Collateral Custodian return each Required Loan Document (a) delivered to the Collateral Custodian in error, (b) for which a Substitute Loan has been substituted in accordance with <u>Section</u> <u>2.17</u>, (c) as to which the related Loan has been repaid in full and the lien on the Related Property has been so released pursuant to <u>Section</u> <u>9.2</u>, (d) that has been transferred to the Borrower pursuant to <u>Section</u> <u>2.17</u>, (e) that has been the subject of an Optional Sale pursuant to <u>Section</u> <u>2.18</u>, (f) that has been the subject of a Discretionary Sale or a Lien Release Dividend pursuant to <u>Section</u> <u>2.19</u> or (g) that is required to be redelivered to the Borrower in connection with the termination of this Agreement, in each case by submitting to the Collateral Custodian and the Administrative Agent a written request in the form of <u>Exhibit</u> <u>G</u> hereto (signed by both the Borrower and the Administrative Agent) specifying the Required Loan Documents to be so returned and reciting that the conditions to such release have been met (and specifying the Section or Sections of this Agreement being relied upon for such release). The Collateral Custodian shall upon its receipt of each such request for return executed by the Borrower and the Administrative Agent promptly, but in any event within five (5) Business Days, return the Required Loan Documents so requested to the Borrower.

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**Section 8.10. <u>Access to Certain Documentation and Information Regarding the Collateral; Audits</u>**.

The Collateral Custodian shall provide to the Administrative Agent and each Lender Agent access to the Required Loan Documents and all other documentation regarding the Collateral including in such cases where the Administrative Agent and each Lender Agent is required in connection with the enforcement of the rights or interests of the Secured Parties, or by applicable statutes or regulations, to review such documentation, such access being afforded without charge but only (i) upon two (2) Business Days prior written request, (ii) during normal business hours and (iii) subject to the Collateral Manager's and Collateral Custodian's normal security and confidentiality procedures. Prior to the Closing Date and periodically thereafter at the discretion of the Administrative Agent and each Lender Agent, the Administrative Agent and each Lender Agent may review the Collateral Manager's collection and administration of the Collateral in order to assess compliance by the Collateral Manager with the Collateral Management Standard, as well as with this Agreement and may conduct an audit of the Collateral, and Required Loan Documents in conjunction with such a review (which audit (x) shall be coordinated by the Administrative Agent and (y) may take the form of a bank meeting); *provided* that, prior to the occurrence and continuation of a Termination Event or an Unmatured Termination Event, the Borrower shall be obligated to pay for only two (2) such audits *per annum*. Without limiting the foregoing provisions of this <u>Section</u> <u>8.10</u>, from time to time on request of the Administrative Agent, the Collateral Custodian shall permit certified public accountants or other independent auditors acceptable to the Administrative Agent to conduct, at the Borrower's expense, a review of the Required Loan Documents and all other documentation regarding the Collateral.

**Section 8.11. <u>Bailment</u>**.

The Collateral Custodian agrees that, with respect to any Required Loan Documents at any time or times in its possession or held in its name, the Collateral Custodian shall be the agent and bailee of the Collateral Agent, for the benefit of the Secured Parties, for purposes of perfecting (to the extent not otherwise perfected) the Collateral Agent's security interest in the Collateral and for the purpose of ensuring that such security interest is entitled to first priority status under the UCC.

**ARTICLE IX.** 

**SECURITY INTEREST** 

**Section 9.1. <u>Grant of Security Interest</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The parties to this Agreement intend that this Agreement constitute a security agreement and the transactions effected hereby constitute secured loans by the applicable Lenders to the Borrower under Applicable Law. For such purpose, the Borrower hereby pledges, collaterally assigns and grants as of the Closing Date to the Collateral Agent, for the benefit of the Secured Parties, a lien and continuing security interest in all of the Borrower's right, title and interest in, to and under (but none of the obligations under) all Collateral, whether now existing or hereafter arising or acquired by the Borrower, and wherever the same may be located, to secure the prompt, complete and indefeasible payment and performance in full when due, whether by lapse of time, acceleration or otherwise, of the Aggregate Unpaids arising in connection with this

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Agreement and each other Transaction Document, whether now or hereafter existing, due or to become due, direct or indirect, or absolute or contingent, including, without limitation, all Aggregate Unpaids. The grant of a security interest under this <u>Section</u> <u>9.1</u> does not constitute and is not intended to result in a creation or an assumption by the Collateral Agent, the Collateral Custodian, the Administrative Agent, the Lender Agents, the Liquidity Banks or any of the Secured Parties of any obligation of the Borrower or any other Person in connection with any or all of the Collateral or under any agreement or instrument relating thereto. Anything herein to the contrary notwithstanding, (i) the Borrower shall remain liable under the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (ii) the exercise by the Collateral Agent, on behalf of the Secured Parties, of any of its rights in the Collateral shall not release the Borrower from any of its duties or obligations under the Collateral and (iii) none of the Collateral Agent, the Collateral Custodian, the Administrative Agent, the Lender Agents, the Liquidity Banks or any Secured Party shall have any obligations or liability under the Collateral by reason of this Agreement, nor shall the Collateral Agent, the Collateral Custodian, the Administrative Agent, the Lender Agents, the Liquidity Banks or any Secured Party be obligated to perform any of the obligations or duties of the Borrower thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

&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, each party to this Agreement hereby agrees to treat each Advance as indebtedness for purposes of United States federal and state income tax or state franchise tax to the extent permitted by Applicable Law and shall file its tax returns or reports in a manner consistent with such treatment.

**Section 9.2. <u>Release of Lien on Collateral</u>**.

At the same time as (i) any Collateral expires by its terms and all amounts in respect thereof have been paid in full by the related Obligor and deposited in the Collection Account, (ii) such Loan is transferred or replaced in accordance with <u>Section</u> <u>2.17</u>, (iii) such Loan has been the subject of an Optional Sale pursuant to <u>Section</u> <u>2.18</u>, (iv) such Loan has been the subject of a Discretionary Sale or a Lien Release Dividend pursuant to <u>Section</u> <u>2.19</u> or (v) this Agreement terminates in accordance with <u>Section</u> <u>13.6</u>, the Collateral Agent, on behalf of the Secured Parties will, to the extent requested by the Collateral Manager, release its interest in such Collateral. In connection with any sale of such Collateral, the Collateral Agent, on behalf of the Secured Parties, will after the deposit by the Collateral Manager of the Proceeds of such sale into the Collection Account, at the sole expense of the Collateral Manager, execute and deliver to the Collateral Manager any assignments, bills of sale, termination statements and any other releases and instruments as the Collateral Manager may reasonably request in order to effect the release and transfer of such Collateral; *provided* that, the Collateral Agent, on behalf of the Secured Parties, will make no representation or warranty, express or implied, with respect to any such Collateral in connection with such sale or transfer and assignment. Nothing in this section shall diminish the Collateral Manager's obligations pursuant to <u>Section</u> <u>6.5</u> with respect to the Proceeds of any such sale.

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**Section 9.3. <u>Further Assurances</u>**.

The provisions of <u>Section</u> <u>13.12</u> shall apply to the security interest granted under <u>Section</u> <u>9.1</u> as well as to the Advances hereunder.

**Section 9.4. <u>Remedies</u>**.

Subject to the provisions of <u>Section</u> <u>10.2</u>, upon the occurrence of a Termination Event, the Collateral Agent and Secured Parties shall have, with respect to the Collateral granted pursuant to <u>Section</u> <u>9.1</u>, and in addition to all other rights and remedies available to the Collateral Agent and Secured Parties under this Agreement or other Applicable Law, all rights and remedies of a secured party upon default under the UCC.

**Section 9.5. <u>Waiver of Certain Laws</u>**.

Each of the Borrower and the Collateral Manager agrees, to the full extent that it may lawfully so agree, that neither it nor anyone claiming through or under it will set up, claim or seek to take advantage of any appraisement, valuation, stay, extension or redemption law now or hereafter in force in any locality where any Collateral may be situated in order to prevent, hinder or delay the enforcement or foreclosure of this Agreement, or the absolute sale of any of the Collateral or any part thereof, or the final and absolute putting into possession thereof, immediately after such sale, of the purchasers thereof, and each of the Borrower and the Collateral Manager, for itself and all who may at any time claim through or under it, hereby waives, to the full extent that it may be lawful so to do, the benefit of all such laws, and any and all right to have any of the properties or assets constituting the Collateral marshaled upon any such sale, and agrees that the Collateral Agent or the Administrative Agent on its behalf or any court having jurisdiction to foreclose the security interests granted in this Agreement may sell the Collateral as an entirety or in such parcels as the Collateral Agent or such court may determine.

**Section 9.6. <u>Power of Attorney</u>**.

Each of the Borrower and the Collateral Manager hereby irrevocably appoints each of the Collateral Agent and the Administrative Agent as its true and lawful attorney (with full power of substitution) in its name, place and stead and at its expense, in connection with the enforcement of the rights and remedies provided for (and subject to the terms and conditions set forth) in this Agreement following the occurrence of a Termination Event or the occurrence and continuation of an Unmatured Termination Event, including without limitation the following powers: (a) to give any necessary receipts or acquittance for amounts collected or received hereunder, (b) to make all necessary transfers of the Collateral in connection with any such sale or other disposition made pursuant hereto, (c) to execute and deliver for value all necessary or appropriate bills of sale, assignments and other instruments in connection with any such sale or other disposition, the Borrower and the Collateral Manager hereby ratifying and confirming all that such attorney (or any substitute) shall lawfully do hereunder and pursuant hereto, and (d) to sign any agreements, orders or other documents in connection with or pursuant to any Transaction Document. Nevertheless, if so requested by the Collateral Agent, the Administrative Agent or a Lender Agent, the Borrower shall ratify and confirm any such sale or other disposition by executing and delivering to the Collateral Agent, the Administrative Agent or such Lender Agent all proper bills of sale, assignments, releases and other instruments as may be designated in any such request.

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**ARTICLE X.** 

**TERMINATION EVENTS** 

**Section 10.1. <u>Termination Events</u>**.

The following events shall be Termination Events ("<u>Termination Events</u>") hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the failure of the Borrower to make any payment when due (after giving effect to any related grace period) under one or more agreements for borrowed money to which it is a party in an aggregate amount in excess of $500,000, or the occurrence of any event or condition that has resulted in the acceleration of such recourse debt or other obligations, whether or not waived; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any failure on the part of the Borrower duly to observe or perform in any material respect any other covenants or agreements of the Borrower set forth in this Agreement or the other Transaction Documents to which the Borrower is a party and the same continues unremedied for a period of thirty (30) days (if such failure can be remedied) after the earlier to occur of (i) the date on which written notice of such failure requiring the same to be remedied shall have been given to the Borrower by the Administrative Agent and (ii) the date on which the Borrower acquires knowledge thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the occurrence of an Insolvency Event relating to the Borrower; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the occurrence of a Collateral Manager Default past any applicable notice or cure period provided in the definition thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (1) the rendering of one or more final judgments, decrees or orders by a court or arbitrator of competent jurisdiction for the payment of money in excess individually or in the aggregate of $500,000 (excluding payments made from insurance proceeds) against the Borrower, and the Borrower shall not have either (i) discharged or provided for the discharge of any such judgment, decree or order in accordance with its terms or (ii) perfected a timely appeal of such judgment, decree or order and caused the execution of same to be stayed during the pendency of the appeal or (2) the Borrower shall have made payments of amounts in excess of $500,000 in the settlement of any litigation, claim or dispute (excluding payments made from insurance proceeds); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower shall cease to be a wholly-owned subsidiary of the Equityholder, or shall fail to qualify as a bankruptcy-remote entity based upon the criteria set forth in <u>Section</u> <u>4.1(v)</u>, such that no reputable counsel of national standing could render a substantive nonconsolidation opinion with respect thereto; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (1) any Transaction Document, or any Lien or security interest granted thereunder, shall (except in accordance with its terms), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of the Borrower or the Collateral 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Borrower, the Collateral Manager or any other Governmental Authority shall, directly or indirectly, contest in any manner the effectiveness, validity, binding nature or enforceability of any Transaction Document or any lien or security interest 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any security interest securing any obligation under any Transaction Document shall, in whole or in part, cease to be a first priority perfected security interest (subject only to Permitted Liens) except as otherwise expressly permitted to be released in accordance with the applicable Transaction Document; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a Borrowing Base Deficiency occurs and continues unremedied for ten (10) Business Days after the earliest to occur of (i) the date on which written notice of such Borrowing Base Deficiency shall have been given to the Borrower or the Collateral Manager and (ii) the date on which a Responsible Officer of the Borrower or the Collateral Manager acquires actual knowledge thereof; *provided* that, notwithstanding the foregoing, if the Borrower shall provide to the Administrative Agent within five (5) Business Days of the occurrence of such Borrowing Base Deficiency a plan, acceptable to the Administrative Agent in its sole discretion, enabling such Borrowing Base Deficiency to be cured within a thirty (30) day period (which period shall (A) include the five (5) Business Days permitted for delivery of such plan and (B) in no case extend beyond the immediately succeeding Payment Date) and such Borrowing Base Deficiency shall be cured within such thirty (30) day period (or such shorter period, as applicable), such Borrowing Base Deficiency shall not constitute a Termination Event; *provided further* that, during the period of time that such event remains unremedied, no additional Advances will be made under this Agreement and any payments required to be made by the Collateral Manager on a Payment Date shall be made under <u>Section</u> <u>2.9</u>; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) failure on the part of the Borrower to make any payment or deposit (including, without limitation, with respect to bifurcation and remittance of Interest Collections and Principal Collections or any other payment or deposit required to be made by the terms of the Transaction Documents, including, without limitation, to any Secured Party, Affected Party or Indemnified Party) required by the terms of any Transaction Document (other than <u>Section</u> <u>2.3</u>) within three (3) Business Days of the day such payment or deposit is required to be made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (i) the Borrower shall become required to register as an "investment company" within the meaning of the 1940 Act or the arrangements contemplated by the Transaction Documents shall require registration as an "investment company" within the meaning of the 1940 Act, (ii) on any date following the BDC Election Date, the Equityholder shall fail to maintain its status as a "business development company" under the 1940 Act or (iii) on any date following the BDC Election Date, the Equityholder fails to maintain an asset coverage ratio (determined in accordance with the 1940 Act) of at least 150%; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the IRS shall file notice of a lien pursuant to Section 6323 of the Code with regard to any assets of the Borrower and such lien shall not have been released within five (5) Business Days, or the Pension Benefit Guaranty Corporation shall file notice of a lien pursuant to Section 4068 of ERISA with regard to any of the assets of the Borrower and such lien shall not have been released within five (5) Business Days; 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;(l) any representation, warranty or certification made by the Borrower in any Transaction Document or in any certificate delivered pursuant to any Transaction Document shall prove to have been incorrect when made, which has a Material Adverse Effect and which continues to be unremedied for a period of thirty (30) days after the earlier to occur of (i) the date on which written notice of such incorrectness requiring the same to be remedied shall have been given to the Borrower by the Administrative Agent and (ii) the date on which a Responsible Officer of the Borrower acquires knowledge thereof; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) failure to pay, on the Termination Date, the outstanding principal of all outstanding Advances, if any, and all Interest and all fees accrued and unpaid thereon together with all other Aggregate Unpaids, including, but not limited to, any Prepayment Penalty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) without limiting the generality of <u>Section</u> <u>10.1(i)</u> above, failure of the Borrower to pay Interest within two (2) Business Days of any Payment Date or within two (2) Business Days of when otherwise due; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) the Borrower ceases to have a valid, perfected ownership interest in all of the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) the Borrower makes any assignment or attempted assignment of their respective rights or obligations under this Agreement or any other Transaction Document without first obtaining the specific written consent of each of the Lenders and the Administrative Agent, which consent may be withheld by any Lender or the Administrative Agent in the exercise of its sole and absolute discretion; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) a breach of the representation in <u>Section</u> <u>4.1(oo)</u>.

**Section 10.2. <u>Remedies</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the occurrence of a Termination Event, (i) the Administrative Agent or all of the Lenders, may, or (ii) the Administrative Agent, upon the direction of the Required Lenders, shall, by notice to the Borrower, declare the Termination Date to have occurred; *provided* that, in the case of any event described in <u>Section</u> <u>10.1(c)</u> or <u>10.1(d)</u> (in the case of <u>Section</u> <u>10.1(d)</u> due to the occurrence of an event described in <u>Section</u> <u>6.12(d)</u>) above, the Termination Date shall be deemed to have occurred automatically upon the occurrence of such event. Upon any such declaration or automatic occurrence, (i) the Borrower shall cease purchasing Loans from any third party seller other than pursuant to binding commitments entered into prior to such time (*provided* that, (x) the Lenders shall have no obligation to advance any amounts hereunder in connection with the acquisition of such Loan and the Borrower shall not apply any amounts on deposit in the Principal Collections Account to the acquisition of such Loan, and (y) the Borrower shall not acquire such Loan if such action would worsen an existing Termination Event or cause the occurrence of a Termination Event), (ii) the Administrative Agent or all of the Lenders may declare the Aggregate Unpaids to be immediately due and payable in full (without presentment, demand, protest or notice of any kind all of which are hereby waived by the Borrower), and (iii) all proceeds

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and distributions in respect of the Related Security shall be distributed by the Collateral Agent (at the direction of the Administrative Agent) as described in <u>Section</u> <u>2.9</u> (*provided* that, the Borrower shall in any event remain liable to pay such Advances and all such amounts and Aggregate Unpaids immediately in accordance with <u>Section</u> <u>2.9</u>). In addition, upon any such declaration or upon any such automatic occurrence, the Collateral Agent, on behalf of the Secured Parties and at the direction of the Administrative Agent, shall have, in addition to all other rights and remedies under this Agreement or otherwise, all other rights and remedies provided under the UCC of the applicable jurisdiction and other Applicable Law, which rights shall be cumulative. Without limiting any obligation of the Collateral Manager hereunder, the Borrower confirms and agrees that the Collateral Agent, on behalf of the Secured Parties and at the direction of the Administrative Agent, (or any designee thereof, including, without limitation, the Collateral Manager), following a Termination Event, shall, at its option, have the sole right to enforce the Borrower's rights and remedies under each Assigned Document, but without any obligation on the part of the Administrative Agent, the Lenders, the Lender Agents or any of their respective Affiliates to perform any of the obligations of the Borrower under any such Assigned Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon the declaration or occurrence of the Termination Date, the Reinvestment Period shall end and the Default Period shall commence. If, (i) upon the Administrative Agent's or the Lenders' declaration that the Advances made to the Borrower hereunder are immediately due and payable pursuant to this <u>Section</u> <u>10.2</u> upon the occurrence of a Termination Event, or (ii) on the Termination Date, the aggregate outstanding principal amount of the Advances, all accrued and unpaid fees and Interest and any other Aggregate Unpaids are not immediately paid in full, then the Collateral Agent (acting as directed by the Administrative Agent) or the Administrative Agent, in addition to all other rights specified hereunder, shall have the right, in its own name and as agent for the Lenders and Lender Agents, to immediately sell (at the Collateral Manager's expense) in a commercially reasonable manner, in a recognized market (if one exists) at such price or prices as the Administrative Agent may reasonably deem satisfactory, any or all of the Collateral and apply the proceeds thereof to the Aggregate Unpaids; *provided* that, the Borrower, the Collateral Manager or any Affiliate thereof shall have the right of first refusal to repurchase the Collateral, in whole but not in part, prior to such sale by paying to the Collateral Agent in immediately available funds, an amount equal to all a purchase price that is not less than the amount of the Aggregate Unpaids, which right of first refusal shall terminate not later than 5:00 p.m. on the tenth (10th) Business Day following the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The parties recognize that it may not be possible to sell all of the Collateral on a particular Business Day, or in a transaction with the same purchaser, or in the same manner because the market for the assets constituting the Collateral may not be liquid. Accordingly, the Administrative Agent may elect, in its sole discretion, the time and manner of liquidating any of the Collateral, and nothing contained herein shall obligate the Administrative Agent or the Collateral Agent (acting as directed by the Administrative Agent) to liquidate any of the Collateral on the date the Administrative Agent or all of the Lenders declare the Advances made to the Borrower hereunder to be immediately due and payable pursuant to this <u>Section</u> <u>10.2</u> or to liquidate all of the Collateral in the same manner or on the same Business Day.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Collateral Agent (acting as directed by the Administrative Agent) or the Administrative Agent proposes to sell the Collateral or any part thereof in one or more parcels at a public or private sale, at the request of the Collateral Agent or the Administrative Agent, as applicable, the Borrower and the Collateral Manager shall make available to (i) the Administrative Agent, on a timely basis, all information (including any information that the Borrower and the Collateral Manager is required by law or contract to be kept confidential, to the extent such information can be provided without violation of such laws; *provided* that (A) notwithstanding the foregoing, neither the Borrower nor the Collateral Manager shall intentionally act or fail to act in a manner that causes a confidentiality restriction to exist or otherwise arise on any such information, (B) to the extent otherwise permissible under law, the Borrower and the Collateral Manager shall provide the Administrative Agent written notice promptly (and in any event within one Business Day) after the earlier of obtaining actual knowledge or receiving written notice of the existence of confidentiality restriction which would preclude delivery of any information with respect to the Collateral, and (C) the Borrower and the Collateral Manager shall undertake commercially reasonable efforts to remove any such confidentiality restrictions so that such information can be made available to the Administrative Agent) relating to the Collateral subject to sale, including, without limitation, copies of any disclosure documents, contracts, financial statements of the applicable Obligors, covenant certificates and any other materials reasonably requested by the Administrative Agent, and (ii) each prospective bidder, on a timely basis, all reasonable information relating to the Collateral subject to sale, including, without limitation, copies of any disclosure documents, contracts, financial statements of the applicable Obligors, covenant compliance certificates and any other materials reasonably requested by each such bidder; *provided* that with respect to this clause (ii), neither the Borrower nor the Collateral Manager shall be required to disclose to each such bidder any information which it is required by law or contract to be kept confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any amounts received from any sale or liquidation of the Collateral pursuant to this <u>Section</u> <u>10.2</u> in excess of the Aggregate Unpaids will be applied by the Collateral Agent (as directed by the Administrative Agent) in accordance with the provisions of <u>Section</u> <u>2.9</u>, or as a court of competent jurisdiction may otherwise direct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Except as otherwise expressly provided in this Agreement, no remedy provided for by this Agreement shall be exclusive of any other remedy, each and every remedy shall be cumulative and in addition to any other remedy, and no delay or omission to exercise any right or remedy shall impair any such right or remedy or shall be deemed to be a waiver of any Termination Event.

**ARTICLE XI.** 

**INDEMNIFICATION** 

**Section 11.1. <u>Indemnities by the Borrower</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without limiting any other rights that any such Person may have hereunder or under Applicable Law, the Borrower hereby agrees to indemnify the Administrative Agent, the Lender Agents, the Collateral Agent, the Collateral Custodian, the Secured Parties, the Affected Parties and each of their respective Affiliates, assigns and officers, directors, employees and agents thereof (collectively, the "<u>Indemnified Parties</u>"), on the first Payment Date occurring at least ten Business Days following written demand therefor, from and against any and all damages, losses, claims, liabilities and related costs and expenses, including attorneys' fees and disbursements (all

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of the foregoing being collectively referred to as the "<u>Indemnified Amounts</u>") awarded against or incurred by such Indemnified Party and other non-monetary damages of any such Indemnified Party or any of them arising out of or as a result of this Agreement or having an interest in the Collateral or in respect of any Loan included in the Collateral, excluding, however, any Indemnified Amounts to the extent resulting solely from (x) gross negligence or willful misconduct on the part of any Indemnified Party or (y) in respect of Taxes (other than those Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim). Without limiting the foregoing, the Borrower shall indemnify each Indemnified Party for Indemnified Amounts (except to the extent resulting from the conditions set forth in clauses (x) or (y) above) relating to or resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&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 Loan treated as or represented by the Borrower to be an Eligible Loan which is not at the applicable time an Eligible Loan, or the purchase by any party of any Loan which violates Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any representation or warranty made or deemed made by the Borrower, the Collateral Manager or any of their respective officers under or in connection with this Agreement or any other Transaction Document, which shall have been false or incorrect in any respect when made or deemed made or 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;(iii) the failure by the Borrower or the Collateral Manager to comply with any term, provision or covenant contained in this Agreement or any agreement executed in connection with this Agreement, or with any Applicable Law, with respect to any Collateral or the nonconformity of any Collateral with any such Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the failure to vest and maintain vested in the Collateral Agent, for the benefit of the Secured Parties, a first priority perfected security interest in the Collateral, together with all Collections, free and clear of any Lien (other than Permitted Liens) whether existing at the time of any Advance at any time 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;(v) the failure to maintain, as of the close of business on each Business Day prior to the earlier to occur of the Reinvestment Period End Date or the Termination Date, an amount of Advances Outstanding that is less than or equal to the lesser of (x) the Facility Amount and (y) the Aggregate Maximum Availability on such Business Day;

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

&nbsp;&nbsp;&nbsp;&nbsp;&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) any dispute, claim, offset or defense (other than the discharge in bankruptcy of an Obligor) of an Obligor to the payment with respect to any Collateral (including, without limitation, a defense based on any Loan (or the Underlying Instruments evidencing such Loan) 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 the sale of the merchandise or services related to such Collateral or the furnishing or failure to furnish such merchandise or services;

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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;(viii) any failure of the Borrower or the Collateral Manager to perform its duties or obligations in accordance with the provisions of this Agreement or any of the other Transaction Documents to which it is a party or any failure by the Borrower or any Affiliate thereof to perform its respective duties under any 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;(ix) any inability to obtain any judgment in, or utilize the court or other adjudication system of, any state in which an Obligor may be located as a result of the failure of the Borrower to qualify to do business or file any notice or business activity report or any similar 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;&nbsp;&nbsp;&nbsp;&nbsp;(x) any action taken by the Borrower or the Collateral Manager in the enforcement or collection of any Collateral which results in any claim, suit or action of any kind pertaining to the Collateral or which reduces or impairs the rights of the Administrative Agent or any Lender with respect to any Loan or the value of any such 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;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any products liability claim or personal injury or property damage suit or other similar or related claim or action of whatever sort arising out of or in connection with the Related Property or services that are the subject of any 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;(xii) any claim, suit or action of any kind arising out of or in connection with Environmental Laws (including, but not limited to, with respect to any REO Asset) including any vicarious 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;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) the failure by the Borrower to pay when due any Taxes for which the Borrower is liable, including without limitation, sales, excise or personal property Taxes payable in connection with 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;(xiv) any repayment by the Administrative Agent, the Lender Agents or a Secured Party of any amount previously distributed in reduction of Advances Outstanding or payment of Interest or any other amount due hereunder, in each case which amount the Administrative Agent, the Lender Agents or a Secured Party believes in good faith is required to be repaid;

&nbsp;&nbsp;&nbsp;&nbsp;&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) except with respect to funds held in the Collection Account, the commingling of Collections on the Collateral at any time with other funds;

&nbsp;&nbsp;&nbsp;&nbsp;&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) any investigation, litigation or proceeding related to this Agreement or the other Transaction Documents or the use of proceeds of Advances or the security interest in the Collateral or the administration of the Loans by the Borrower or the Collateral Manager;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) any failure by the Borrower to give reasonably equivalent value, at the direction of the Collateral Manager, to the applicable third party transferor in consideration for the transfer by such transferor to the Borrower of any item of Collateral, or any attempt by any Person to void or otherwise avoid any such transfer under any statutory provision or common law or equitable action, including, without limitation, any provision of the Bankruptcy Code;

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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;(xviii) the use of the proceeds of any Advance in a manner other than as provided in this Agreement and the Transaction 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;(xix) the failure of the Borrower, the Collateral Manager or any of their respective agents or representatives to remit to the Collection Account within two (2) Business Days of receipt Collections on the Collateral remitted to the Borrower, the Collateral Manager or any such agent or representative, as provided in this 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;&nbsp;&nbsp;&nbsp;&nbsp;(xx) any shortfall in the amount of any payment (after conversion of such payment into Dollars by the Administrative Agent at the exchange rate) due under or in connection with this Agreement or any Transaction Document as a result of such payment being made in a currency other than in Dollars.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any amounts subject to the indemnification provisions of this <u>Section</u> <u>11.1</u> shall be paid by the Borrower to the Administrative Agent on behalf of the applicable Indemnified Party on the first Payment Date occurring at least ten (10) Business Days following written demand therefor on behalf of the applicable Indemnified Party (and the Administrative Agent shall pay such amounts to the applicable Indemnified Party promptly after the receipt by the Administrative Agent of such amounts). The Administrative Agent, on behalf of any Indemnified Party making a request for indemnification under this <u>Section</u> <u>11.1</u>, shall submit to the Borrower a certificate setting forth in reasonable detail the basis for and the computations of the Indemnified Amounts with respect to which such indemnification is requested, which certificate shall be conclusive absent demonstrable error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If for any reason the indemnification provided above in this <u>Section</u> <u>11.1</u> is unavailable to the Indemnified Party or is insufficient to hold an Indemnified Party harmless, then the Borrower shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified Party on the one hand and the Borrower on the other hand but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations; *provided* that, the Borrower shall not be required to contribute in respect of any Indemnified Amounts excluded in <u>Section</u> <u>11.1(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Borrower has made any indemnity payments to the Administrative Agent, on behalf of an Indemnified Party, pursuant to this <u>Section</u> <u>11.1</u> and such payment fully indemnified such Indemnified Party and such Indemnified Party thereafter collects any payments from others in respect of such Indemnified Amounts, then such Indemnified Party will repay to the Borrower an amount equal to the amount it has collected from others in respect of such Indemnified Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The obligations of the Borrower under this <u>Section</u> <u>11.1</u> shall survive the resignation or removal of the Administrative Agent, the Lender Agents, the Collateral Manager, the Collateral Agent or the Collateral Custodian and the termination of this Agreement.

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**Section 11.2. <u>Indemnities by the Collateral Manager</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Without limiting any other rights that any such Person may have hereunder or under Applicable Law, the Collateral Manager hereby agrees to indemnify each Indemnified Party, within ten (10) Business Days following written demand, from and against any and all Indemnified Amounts awarded against or incurred by any such Indemnified Party by reason of any acts or omissions of the Collateral Manager in connection with its obligations or duties under this Agreement, including, but not limited to, the following excluding however, Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of any Indemnified Party 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;(i) the inclusion, in any computations made by it in connection with any Borrowing Base Certificate or other report prepared by it hereunder, of any Loans which were not Eligible Loans as of the date of any such computation;

&nbsp;&nbsp;&nbsp;&nbsp;&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) any representation or warranty made by the Collateral Manager under or in connection with any Transaction Document, any Collateral Management Report, Collateral Manager's Certificate or any other information or report delivered by or on behalf of the Collateral Manager pursuant hereto, which shall have been false, incorrect or misleading in any respect when made or deemed 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;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the failure by the Collateral Manager to comply with any Applicable Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the failure of the Collateral Manager to comply with its duties or obligations in accordance with the Agreement or any other agreement executed in connection with 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;(v) any litigation, proceedings or investigation against the Collateral Manager in connection with any Transaction Document or its role as Collateral Manager hereunder that gives rise to an Indemnified 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;(vi) any action or inaction by the Collateral Manager that causes the Collateral Agent, for the benefit of the Secured Parties, not to have a first priority perfected security interest in the Collateral, free and clear of any Lien other than Permitted Liens, whether existing at the time of the related Advance or any time 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;(vii) except as permitted by this Agreement, the commingling by the Collateral Manager of payments and collections required to be remitted to the Collection Account or the Unfunded Exposure Account with other funds;

&nbsp;&nbsp;&nbsp;&nbsp;&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) any failure of the Collateral Manager or any of its agents or representatives (including, without limitation, agents, representatives and employees of such Collateral Manager acting pursuant to authority granted under <u>Section</u> <u>6.1</u> hereof) to remit to Collection Account, payments and collections with respect to Loans remitted to the Collateral Manager or any such agent or representative within two (2) Business Days of receipt;

&nbsp;&nbsp;&nbsp;&nbsp;&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) failure or delay in assisting a successor Collateral Manager in assuming each and all of the Collateral Manager's obligations to service and administer the Collateral, or failure or delay in complying with instructions from the Administrative Agent with respect thereto; and/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;&nbsp;&nbsp;&nbsp;&nbsp;(x) any of the events or facts giving rise to a breach of any of the Collateral Manager's representations, warranties, agreements and/or covenants set forth in <u>Article</u> <u>IV</u>, <u>Article</u> <u>V</u> or <u>Article</u> <u>VI</u> or this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any amounts subject to the indemnification provisions of this <u>Section</u> <u>11.2</u> shall be paid by the Collateral Manager to the Administrative Agent on behalf of the applicable Indemnified Party within ten (10) Business Days following receipt by the Collateral Manager of the Administrative Agent's written demand therefor on behalf of the applicable Indemnified Party (and the Administrative Agent shall pay such amounts to the applicable Indemnified Party promptly after the receipt by the Administrative Agent of such amounts). The Administrative Agent, on behalf of any Indemnified Party making a request for indemnification under this <u>Section</u> <u>11.2</u>, shall submit to the Collateral Manager a certificate setting forth in reasonable detail the basis for and the computations of the Indemnified Amounts with respect to which such indemnification is requested, which certificate shall be conclusive absent demonstrable error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If for any reason the indemnification provided above in <u>Section</u> <u>11.2</u> is unavailable to the Indemnified Party or is insufficient to hold an Indemnified Party harmless, then the Collateral Manager shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect not only the relative benefits received by such Indemnified Party on the one hand and the Collateral Manager on the other hand but also the relative fault of such Indemnified Party as well as any other relevant equitable considerations; *provided* that, the Collateral Manager shall not be required to contribute in respect of any Indemnified Amounts excluded in <u>Section</u> <u>11.2(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Collateral Manager has made any indemnity payments to the Administrative Agent, on behalf of an Indemnified Party, pursuant to this <u>Section</u> <u>11.2</u> and such payment fully indemnified such Indemnified Party and such Indemnified Party thereafter collects any payments from others in respect of such Indemnified Amounts, then such Indemnified Party will repay to the Collateral Manager an amount equal to the amount it has collected from others in respect of such Indemnified Amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Collateral Manager shall have no liability for making indemnification hereunder to the extent any such indemnification constitutes recourse for uncollectible or uncollected Loans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The obligations of the Collateral Manager under this <u>Section</u> <u>11.2</u> shall survive the resignation or removal of the Administrative Agent, the Lender Agents, the Collateral Agent or the Collateral Custodian and the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any indemnification pursuant to this <u>Section</u> <u>11.2</u> shall not be payable from the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The provisions of this indemnity shall run directly to and be enforceable by an injured party subject to the limitations hereof.

Each applicable Indemnified Party shall deliver to the indemnifying party under <u>Section</u> <u>11.1</u> and <u>Section</u> <u>11.2</u>, within a reasonable time after such Indemnified Party's receipt thereof, copies of all notices and documents (including court papers) received by such Indemnified Party relating to the claim giving rise to the Indemnified Amounts. For the avoidance of doubt, this Section 11.2 shall not apply to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

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**Section 11.3. <u>After</u><u>-Tax Basis</u>**.

INDEMNIFICATION UNDER <u>SECTION</u> <u>11.1</u> AND <u>SECTION</u> <u>11.2</u> SHALL BE IN AN AMOUNT NECESSARY TO MAKE THE INDEMNIFIED PARTY WHOLE AFTER TAKING INTO ACCOUNT ANY TAX CONSEQUENCES TO THE INDEMNIFIED PARTY OF THE RECEIPT OF THE INDEMNITY PAYMENT PROVIDED HEREUNDER, INCLUDING THE EFFECT OF SUCH TAX OR REFUND ON THE AMOUNT OF TAX MEASURED BY NET INCOME OR PROFITS THAT IS OR WAS PAYABLE BY THE INDEMNIFIED PARTY.

**ARTICLE XII.** 

**THE ADMINISTRATIVE AGENT AND LENDER AGENTS** 

**Section 12.1. <u>The Administrative Agent</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Appointment</u>. Each Lender Agent and each Secured Party hereby appoints and authorizes the Administrative Agent as its agent and hereby further authorizes the Administrative Agent to appoint additional agents to act on its behalf and for the benefit of each of the Lender Agents and each Secured Party. Each Lender Agent and each Secured Party further authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under this Agreement and the other Transaction Documents as are delegated to the Administrative Agent by the terms hereof and thereof, together with such powers as are reasonably incidental thereto. In furtherance, and without limiting the generality, of the foregoing, each Secured Party hereby appoints the Administrative Agent as its agent to execute and deliver all further instruments and documents, and take all further action that the Administrative Agent may deem necessary or appropriate or that a Secured Party may reasonably request in order to perfect, protect or more fully evidence the security interests granted by the Borrower hereunder, or to enable any of them to exercise or enforce any of their respective rights hereunder, including, without limitation, the execution by the Collateral Agent as secured party/assignee of such financing or continuation statements, or amendments thereto or assignments thereof, relative to all or any of the Collateral now existing or hereafter arising, and such other instruments or notices, as may be necessary or appropriate for the purposes stated hereinabove. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Transaction Document, the Administrative Agent shall not have any duties or responsibilities, except those expressly set forth in this Agreement, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or Lender Agent, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Transaction Document or otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term "agent" in this Agreement with reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any Applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delegation of Duties</u>. The Administrative Agent may execute any of its duties under this Agreement or any other Transaction Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Administrative Agent's Reliance, Etc</u>. Neither the Administrative Agent nor any of its directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them as Administrative Agent under or in connection with this Agreement or any of the other Transaction Documents, except for its or their own gross negligence or willful misconduct. Each Lender, Lender Agent and each Secured Party hereby waives any and all claims against the Administrative Agent or any of its Affiliates for any action taken or omitted to be taken by the Administrative Agent or any of its Affiliates under or in connection with this Agreement or any of the other Transaction Documents, except for its or their own gross negligence or willful misconduct. Without limiting the foregoing, the Administrative Agent: (i) may consult with legal counsel (including counsel for the Borrower or the Collateral Manager), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants or experts; (ii) makes no warranty or representation and shall not be responsible for any statements, warranties or representations made by any other Person in or in connection with this Agreement; (iii) 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 of the other Transaction Documents on the part of the Borrower or the Collateral Manager or to inspect the property (including the books and records) of the Borrower or the Collateral Manager; (iv) shall not be responsible for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement, any of the other Transaction Documents or any other instrument or document furnished pursuant hereto or thereto; and (v) shall incur no liability under or in respect of this Agreement or any of the other Transaction Documents by acting upon any notice (including notice by telephone), consent, certificate or other instrument or writing (which may be by facsimile) 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;(d) <u>Actions by Administrative Agent</u>. The Administrative Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Transaction Document unless it shall first receive such advice or concurrence of the Lender Agents as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders and Lender Agents against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Transaction Document in accordance with a request or consent of the Lender Agents; *provided* that, notwithstanding anything to the contrary herein, the Administrative Agent shall not be required to take any action hereunder if the taking of such action, in the reasonable determination of the Administrative Agent, shall be in violation of any Applicable Law or contrary to any provision of this Agreement or shall expose the Administrative Agent to liability hereunder or otherwise. In the event the Administrative Agent requests the consent of a Lender Agent pursuant to the foregoing provisions and the Administrative Agent does not receive a consent (either positive or negative) from such Person within ten (10) Business Days of such Person's receipt of such request, then such Lender or Lender Agent shall be deemed to have declined to consent to the relevant action.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice of Termination Event, Unmatured Termination Event or Collateral Manager Default</u>. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of a Termination Event, Unmatured Termination Event or Collateral Manager Default, unless the Administrative Agent has received written notice from a Lender, Lender Agent, the Borrower or the Collateral Manager referring to this Agreement, describing such Termination Event, Unmatured Termination Event or Collateral Manager Default and stating that such notice is a "Notice of Termination Event," "Notice of Unmatured Termination Event" or "Notice of Collateral Manager Default," as applicable. The Administrative Agent shall (subject to <u>Section</u> <u>12.1(c)</u>) take such action with respect to such Termination Event, Unmatured Termination Event or Collateral Manager Default as may be requested by the Lender Agents acting jointly or as the Administrative Agent shall deem advisable or in the best interest of the Lender Agents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Credit Decision with Respect to the Administrative Agent</u>. Each Lender Agent and each Secured Party acknowledges that none of the Administrative Agent or any of its Affiliates has made any representation or warranty to it, and that no act by the Administrative Agent hereinafter taken, including any consent to and acceptance of any assignment or review of the affairs of the Borrower, the Collateral Manager or any of their respective Affiliates or review or approval of any of the Collateral, shall be deemed to constitute any representation or warranty by any of the Administrative Agent or its Affiliates to any Lender Agent as to any matter, including whether the Administrative Agent has disclosed material information in its possession. Each Lender Agent and Secured Party acknowledges that it has, independently and without reliance upon the Administrative Agent, or any of the Administrative Agent's Affiliates, and based upon such documents and information as it has deemed appropriate, made its own evaluation and decision to enter into this Agreement and the other Transaction Documents to which it is a party. Each Lender Agent and Secured Party also acknowledges that it will, independently and without reliance upon the Administrative Agent, or any of the Administrative Agent's Affiliates, and based on such documents and information as it shall deem appropriate at the time, continue to make its own decisions in taking or not taking action under this Agreement and the other Transaction Documents to which it is a party. Each Lender Agent and each Secured Party hereby agrees that the Administrative Agent shall not have any duty or responsibility to provide any Lender Agent with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of the Borrower, the Collateral Manager or their respective Affiliates which may come into the possession of the Administrative Agent or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Indemnification of the Administrative Agent</u>. Each Lender Agent agrees to indemnify the Administrative Agent (to the extent not reimbursed by the Borrower or the Collateral Manager), ratably in accordance the Pro Rata Share of its related Lender 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 the Administrative Agent in any way relating to or arising out of this Agreement or any of the other Transaction Documents, or any action taken or omitted by the Administrative Agent hereunder or thereunder; *provided* that, the Lender Agents shall not be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,

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costs, expenses or disbursements resulting from the Administrative Agent's gross negligence or willful misconduct *provided further* that, no action taken in accordance with the directions of the Lender Agents shall be deemed to constitute gross negligence or willful misconduct for purposes of this <u>Article</u> <u>XII</u>. Without limitation of the foregoing, each Lender Agent agrees to reimburse the Administrative Agent, ratably in accordance with the Pro Rata Share of its related Lender promptly upon demand for any out-of-pocket expenses (including counsel fees) incurred by the Administrative Agent in connection with the administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement and the other Transaction Documents, to the extent that such expenses are incurred in the interests of or otherwise in respect of the Lender Agents, or the Lenders hereunder and/or thereunder and to the extent that the Administrative Agent is not reimbursed for such expenses by the Borrower or the Collateral Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Successor Administrative Agent</u>. The Administrative Agent may resign at any time, effective upon the appointment and acceptance of a successor Administrative Agent as provided below, by giving at least five (5) days' written notice thereof to each Lender Agent and the Borrower. Upon any such resignation or removal, the Required Lenders shall (provided that no Termination Event has occurred and is continuing, subject to the consent of the Borrower) appoint a successor Administrative Agent. Each Lender Agent agrees that it shall not unreasonably withhold or delay its approval of the appointment of a successor Administrative Agent. If no such successor Administrative Agent shall have been so appointed, and shall have accepted such appointment, within thirty (30) days after the retiring Administrative Agent's giving of notice of resignation or the removal of the retiring Administrative Agent, then the retiring Administrative Agent may, on behalf of the Secured Parties, appoint a successor Administrative Agent which successor Administrative Agent shall be either (i) a commercial bank organized under the laws of the United States or of any state thereof and have a combined capital and surplus of at least $50,000,000 or (ii) an Affiliate of such a bank. Upon the acceptance of any appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations under this Agreement. After any retiring Administrative Agent's resignation or removal hereunder as Administrative Agent, the provisions of this <u>Article</u> <u>XII</u> shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Payments by the Administrative Agent</u>. Unless specifically allocated to a specific Lender Agent pursuant to the terms of this Agreement, all amounts received by the Administrative Agent on behalf of the Lender Agents shall be paid by the Administrative Agent to the Lender Agents in accordance with their related Lender's respective Pro Rata Shares in the applicable Advances Outstanding, or if there are no Advances Outstanding in accordance with their related Lender's most recent Commitments, on the Business Day received by the Administrative Agent, unless such amounts are received after 12:00 noon on such Business Day, in which case the Administrative Agent shall use its reasonable efforts to pay such amounts to each Lender Agent on such Business Day, but, in any event, shall pay such amounts to such Lender Agent not later than the following Business Day.

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**Section 12.2. <u>Additional Agent</u>**.

&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 Lender, respectively, hereby designates and appoints its applicable Lender Agent to act as its agent hereunder and under each other Transaction Document, and authorizes such Lender Agent to take such actions as agent on its behalf and to exercise such powers as are delegated to such Lender Agent by the terms of this Agreement and the other Transaction Documents, together with such powers as are reasonably incidental thereto. No Lender Agent shall have any duties or responsibilities, except those expressly set forth herein or in any other Transaction Document, or any fiduciary relationship with its related Lender, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on the part of such Lender Agent shall be read into this Agreement or any other Transaction Document or otherwise exist for such Lender Agent. In performing its functions and duties hereunder and under the other Transaction Documents, each Lender Agent shall act solely as agent for its related Lender and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for the Borrower or the Collateral Manager or any of the Borrower's or the Collateral Manager's successors or assigns. No Lender Agent shall be required to take any action that exposes such Lender Agent to personal liability or that is contrary to this Agreement, any other Transaction Document or Applicable Law. The appointment and authority of each Lender Agent hereunder shall terminate upon the indefeasible payment in full of all Aggregate Unpaids. Each Lender Agent hereby authorizes the Administrative Agent to file any UCC financing statement deemed necessary by the Administrative Agent on behalf of such Lender Agent (the terms of which shall be binding on such Lender Agent).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Delegation of Duties</u>. Each Lender Agent may execute any of its duties under this Agreement and each other Transaction Document by or through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. No Lender 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;(c) <u>Exculpatory Provisions</u>. Neither any Lender Agent nor any of its directors, officers, agents or employees shall be (i) liable for any action lawfully taken or omitted to be taken by it or them under or in connection with this Agreement or any other Transaction Document (except for its, their or such Person's own gross negligence or willful misconduct), or (ii) responsible in any manner to its related Lender for any recitals, statements, representations or warranties made by the Borrower or the Collateral Manager contained in <u>Article</u> <u>IV</u>, any other Transaction Document or any certificate, report, statement or other document referred to or provided for in, or received under or in connection with, this Agreement or any other Transaction Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement, any other Transaction Document or any other document furnished in connection herewith or therewith, or for any failure of the Borrower or the Collateral Manager to perform its obligations hereunder or thereunder, or for the satisfaction of any condition specified in this Agreement, or for the perfection, priority, condition, value or sufficiency of any collateral pledged in connection herewith. No Lender Agent shall be under any obligation to its related Lender to ascertain or to inquire as to the observance or performance of any of the agreements or covenants contained in, or conditions of, this Agreement or any other Transaction Document, or to inspect the properties, books or records of the Borrower or the Collateral Manager. No Lender Agent shall be deemed to have knowledge of any Termination Event or Unmatured Termination Event unless such Lender Agent has received notice from the Borrower or its related 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;(d) <u>Reliance by Lender Agent</u>. Each Lender Agent shall in all cases be entitled to rely, and shall be fully protected in relying, upon any document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including, without limitation, counsel to the Borrower), independent accountants and other experts selected by such Lender Agent. Each Lender Agent shall in all cases be fully justified in failing or refusing to take any action under this Agreement or any other Transaction Document unless it shall first receive such advice or concurrence of its related Lender as it deems appropriate and it shall first be indemnified to its satisfaction by its related Lender; *provided* that, unless and until such Lender Agent shall have received such advice, such Lender Agent may take or refrain from taking any action, as the Lender Agent shall deem advisable and in the best interests of its related Lender. Each Lender Agent shall in all cases be fully protected in acting, or in refraining from acting, in accordance with a request of its related Lender, and such request and any action taken or failure to act pursuant thereto shall be binding upon its related Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non</u><u>-Reliance on Lender Agent</u>. Each Lender expressly acknowledges that neither its related agent, nor any of its officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representations or warranties to it and that no act by such Lender Agent hereafter taken, including, without limitation, any review of the affairs of the Borrower or the Collateral Manager, shall be deemed to constitute any representation or warranty by such Lender Agent. Each Lender represents and warrants to its related agent that it has and will, independently and without reliance upon its related Lender Agent, and based on such documents and information as it has deemed appropriate, made its own appraisal of an investigation into the business, operations, property, prospects, financial and other conditions and creditworthiness of the Borrower and made its own decision to enter into this Agreement, the other Transaction Documents and all other documents related hereto or thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Lender Agents are in their Respective Individual Capacities</u>. Each Lender Agent and its Affiliates may make loans to, accept deposits from and generally engage in any kind of business with the Borrower or any Affiliate of the Borrower as though such Lender Agent were not a Lender Agent hereunder. With respect to Advances pursuant to this Agreement, each Lender Agent shall have the same rights and powers under this Agreement in its individual capacity as any Lender and may exercise the same as though it were not a Lender Agent, and the terms "Lender," and "Lenders," shall include the Lender Agent in its individual capacity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Successor Lender Agent</u>. Each Lender Agent may, upon five (5) days' notice to the Borrower and its related Lender, and such Lender Agent will, upon the direction of its related Lender resign as the Lender Agent for such Lender. If any Lender Agent shall resign, then its related Lender during such five-day period shall appoint a successor agent. If for any reason no successor agent is appointed by such Lender during such five-day period, then effective upon the termination of such five-day period, and the Borrower shall make all payments in respect of the Aggregate Unpaids due to such Lender directly to such Lender, and for all purposes shall deal directly with such Lender. After any retiring Lender Agent's resignation hereunder as a Lender Agent, the provisions of <u>Articles</u> <u>XI</u> and <u>XII</u> shall inure to its benefit with respect to any actions taken or omitted to be taken by it while it was an additional agent under this Agreement.

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**Section 12.3. <u>Erroneous Payments</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender, each other Secured Party and any other party hereto hereby severally agrees that if (i) the Administrative Agent notifies (which such notice shall be conclusive absent manifest error) such Lender or any other Secured Party or any other Person that the Administrative Agent has determined in its sole discretion that such Person has received funds on behalf of a Lender or Secured Party (each such recipient, a "<u>Payment Recipient</u>") from the Administrative Agent or any of its Affiliates that were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Payment Recipient) or (ii) any Payment Recipient receives any payment from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable, or (z) that such Payment Recipient otherwise becomes aware that such payment was transmitted or received in error or by mistake (in whole or in part) then, in each case, an error in payment shall be presumed to have been made (any such amounts specified in clauses (i) or (ii) of this <u>Section</u> <u>12.3(a)</u>, whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise; individually and collectively, an "<u>Erroneous Payment</u>") then, in each case, such Payment Recipient is deemed to have knowledge of such error at the time of its receipt of such Erroneous Payment; <u>provided</u> that nothing in this <u>Section</u> <u>12.3</u> shall require the Administrative Agent to provide any of the notices specified in clauses (i) or (ii) above. Each Payment Recipient shall not assert any right or claim to the Erroneous Payment, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payments, 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;(b) Without limiting the immediately preceding clause (a), each Payment Recipient agrees that, in the case of clause (a)(ii) above, it shall promptly (and, in all events, within one (1) Business Day of its knowledge of such error) notify the Administrative Agent in writing of such occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of either clause (a)(i) or (a)(ii) above, (i) such Erroneous Payment comprised of funds of the Administrative Agent shall at all times remain the property of the Administrative Agent, (ii) such Erroneous Payment comprised of funds of the Borrower shall at all times remain the property of the Borrower and (iii) the applicable Payment Recipient shall promptly segregate and hold in trust such amounts for the benefit of the Administrative Agent, or the Borrower, as applicable, and upon written demand from the Administrative Agent such Payment Recipient shall (or, shall cause any Person that received any portion of an Erroneous Payment on its behalf to), promptly, but in all events no 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 and in the currency so received, together

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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 at the greater of the Federal Funds Rate and an overnight rate reasonably determined by the Administrative Agent to be customary in the place of disbursement or payment for the settlement of international banking transactions.

&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 an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding clause (c), from any Lender that is a Payment Recipient or an Affiliate of a Payment Recipient (such unrecovered amount as to such Lender, an "<u>Erroneous Payment Return Deficiency</u>"), then at the sole discretion of the Administrative Agent and upon the Administrative Agent's written notice to such Lender (i) such Lender shall be deemed to have assigned its Advances (but not its Commitments) with respect to which such Erroneous Payment was made to the Administrative Agent or, at the option of the Administrative Agent, any Lender Affiliated with the Administrative Agent, in a principal amount equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Advances (but not Commitments), the "<u>Erroneous Payment Deficiency Assignment</u>") at par plus any accrued and unpaid interest, without further consent or approval of any party hereto, without any further payment by the Administrative Agent or its Affiliated Lender as the assignee of such Erroneous Payment Deficiency Assignment. Without limitation of its rights hereunder, the Administrative Agent may cancel any Erroneous Payment Deficiency Assignment at any time by written notice to the applicable assigning Lender and upon such revocation all of the Advances (but not Commitments) assigned pursuant to such Erroneous Payment Deficiency Assignment shall be reassigned to such Lender without any requirement for payment or other consideration. The parties hereto acknowledge and agree that (i) any assignment contemplated in this <u>Section</u> <u>12.3(d)</u> shall be made without any requirement for any payment or other consideration paid by the applicable assignee or received by the assignor, (ii) the provisions of this clause (d) shall govern in the event of any conflict with the terms and conditions of <u>Section</u> <u>13.16</u> and (iii) the Administrative Agent may reflect in the Register its ownership interest in the Advances subject to the Erroneous Payment Deficiency Assignment. For the avoidance of doubt, no Erroneous Payment Deficiency Assignment will reduce the Commitments of any Lender and such Commitments shall remain available in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each party hereto hereby agrees that (x) in the event 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 Administrative Agent shall be subrogated to all the rights of such Payment Recipient with respect to such amount, (y) the receipt of an Erroneous Payment by a Payment Recipient shall not for the purpose of this Agreement be treated as a payment, prepayment, repayment, discharge or other satisfaction of any Obligations owed by the Borrower (except to the extent that the funds used to make such Erroneous Payment were received from the Borrower as repayment of such Obligations) and (z) to the extent that an Erroneous Payment was in any way or at any time credited as payment or satisfaction of any of the Obligations, the Obligations or any part thereof that were so credited, and all rights of the Payment Recipient, as the case may be, shall be reinstated and continue in full force and effect as if such payment or satisfaction had never been received (except to the extent that the funds used to make such Erroneous Payment were received from the Borrower as repayment of such Obligations).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each Payment Recipient hereby authorizes the Administrative Agent to set off, net and apply any and all amounts at any time owing to such Payment Recipient under any Transaction Document, or otherwise payable or distributable by the Administrative Agent to such Payment Recipient from any source, against any amount due to the Administrative Agent under pursuant to this <u>Section</u> <u>12.3</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;(g) Each party's obligations under this <u>Section</u> <u>12.3</u> shall survive the resignation or replacement of the Administrative Agent or any transfer of right or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Transaction Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The provisions of this <u>Section</u> <u>12.3</u> shall similarly apply to any Erroneous Payment sent by the Collateral Agent, *mutatis mutandis*.

**ARTICLE XIII.** 

**MISCELLANEOUS** 

**Section 13.1. <u>Amendments and Waivers</u>**.

Except as provided in this <u>Section</u> <u>13.1</u>, no amendment, waiver or other modification of any provision of this Agreement shall be effective without the written agreement of the Borrower, the Collateral Manager, the Required Lenders and the Administrative Agent; *provided* that, no amendment, waiver or consent shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) increase the Commitment of any Lender or the amount of Advances of any Lender, in any case, without the written consent of such Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) waive, extend or postpone any date fixed by this Agreement or any other Transaction Document for any payment or mandatory prepayment of principal, interest, fees or other amounts due to the Lenders (or any of them) or any scheduled or mandatory reduction of the Commitment hereunder or under any other Transaction Document without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) reduce the principal of, or the rate of interest specified herein on, any Advance or Aggregate Unpaid, or any fees or other amounts payable hereunder or under any other Transaction Document without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) change <u>Sections</u> <u>2.7</u>, <u>2.8</u>, <u>2.9</u> or any related definitions or provisions in a manner that would alter the order of application of proceeds or would alter the *pro rata* sharing of payments required thereby, in each case, without the written consent of each Lender directly and adversely affected thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) change any provision of this Section or reduce the percentages specified in the definition of "Required Lenders" or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender directly affected thereby;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) consent to the assignment or transfer by any party hereto of such Person's rights and obligations under any Transaction Document to which it is a party (except as expressly permitted hereunder), in each case, without the written consent of each Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) make any modification to the definition of "Borrowing Base," "Advance Rate," "Adjusted Balance," "Aggregate Maximum Availability" "Eligible Currency Maximum Availability" or "Availability," in each case, without the written consent of each Lender (but excluding any such modifications which, individually or in the aggregate, are reasonably expected to result only in an immaterial increase to the Aggregate Maximum Availability or the Eligible Currency Maximum Availability); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) release all or substantially all of the Collateral or release any Transaction Document (other than as specifically permitted or contemplated in this Agreement or the applicable Transaction Document) without the written consent of each Lender;

*provided further* that, (i) any amendment of this Agreement that is solely for the purpose of adding a Lender as contemplated hereby may be effected without the written consent of the Borrower or any Lender, (ii) no such amendment, waiver or modification materially adversely affecting the rights or obligations of the Collateral Agent or the Collateral Custodian shall be effective without the written agreement of such Person, (iii) no amendment, waiver or consent shall, unless in writing and signed by the Swingline Lender in addition to the Lender required above, affect the rights or duties of the Swingline Lender under this Agreement; (iv) no amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent, affect the rights or duties of the Administrative Agent under this Agreement or any other Transaction Document, (v) any amendment of the Agreement (a proposed copy of which shall be provided to the Borrower as soon as reasonably practicable prior to the execution thereof) that a Lender is advised by its legal or financial advisors (a copy of which advice, or reasonable summary thereof, shall be provided to the Borrower to the extent the Administrative Agent determines such information (x) is not proprietary, (y) can be provided without violation of law or contracts and (z) will not void any applicable privilege) to be necessary or desirable in order to avoid the consolidation of the Borrower with such Lender for accounting purposes may be effected without the written consent of any other Lender, and (vi) the Administrative Agent and the Borrower shall be permitted to amend any provision of the Transaction Documents (and such amendment shall become effective without any further action or consent of any other party to any Transaction Document) if the Administrative Agent and the Borrower shall have jointly identified an obvious error or any error or omission of a technical or immaterial nature in any such provision. Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be increased or extended without the consent of such Lender.

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Notwithstanding anything to the contrary herein or in any other Transaction Document, upon the occurrence of a Benchmark Transition Event with respect to any Benchmark, the Administrative Agent and the Borrower may amend this Agreement to replace such Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed amendment to all affected Lenders and the Borrower so long as 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</u> <u>13.1</u> will occur prior to the applicable Benchmark Transition Start Date.

In connection with the use, administration, adoption or implementation of a Benchmark Replacement, the Administrative Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Conforming Change(s) will become effective without any further action or consent of any other party to this Agreement (except as required pursuant to the definition of "Conforming Changes") or any other Transaction Document.

The Administrative Agent will promptly notify the Borrower, the Collateral Manager, the Collateral Agent and the Lenders of (i) the implementation of any Benchmark Replacement and (ii) the effectiveness of any Conforming Changes in connection with the use, administration, adoption or implementation of a Benchmark Replacement. The Administrative Agent will promptly notify the Borrower of the removal or reinstatement of any tenor of a Benchmark. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this <u>Section</u> <u>13.1</u> including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this <u>Section</u> <u>13.1</u>.

Notwithstanding anything to the contrary herein, upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period with respect to a given Benchmark, the Borrower may revoke any pending request for an Advance to be made during any Benchmark Unavailability Period. During a Benchmark Unavailability Period with respect to any Benchmark or at any time that a tenor for any then-current Benchmark is not available, the Base Rate shall be used instead of such Benchmark to calculate Interest.

**Section 13.2. <u>Notices, Etc</u>**.

All notices, reports and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including communication by e-mail and facsimile copy) and mailed, e-mailed, faxed, transmitted or delivered, as to each party hereto, at its address set forth on <u>Annex</u> <u>A</u> to this Agreement or at such other address as shall be designated by such party in a written notice to the other parties hereto. All such notices and communications shall be effective, upon receipt, or in the case of (a) notice by mail, five (5) days after being deposited in the United States mail, first class postage prepaid, (b) notice by e-mail, when verbal or electronic communication of receipt is obtained, or (c) notice by facsimile copy, when verbal communication of receipt is obtained.

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**Section 13.3. <u>Ratable Payments</u>**.

If any Secured Party, whether by setoff or otherwise, has payment (whether voluntary, involuntary, through the exercise of any right or setoff, or otherwise) made to it with respect to any portion of the Aggregate Unpaids owing to such Secured Party (other than payments received pursuant to <u>Section</u> <u>11.1</u>) in a greater proportion than that received by any other Secured Party, such Secured Party agrees, promptly following written demand, to purchase for cash without recourse or warranty a portion of the Aggregate Unpaids held by the other Secured Parties so that after such purchase each Secured Party will hold its ratable proportion of the Aggregate Unpaids; *provided* that, if all or any portion of such excess amount is thereafter recovered from such Secured Party, such purchase shall be rescinded and such Secured Party shall repay to the purchasing Secured Party the purchase price to the extent of such recovery together with an amount equal to such Secured Party's ratable share (according to the proportion of (i) the amount of such Secured Party's required repayment to (ii) the total amount so recovered from the purchasing Secured Party) of any interest or other amount paid or payable by the purchasing Secured Party in respect of the total amount so recovered.

**Section 13.4. <u>No Waiver; Remedies</u>**.

No failure on the part of the Administrative Agent, the Lender Agents, the Collateral Custodian, the Collateral Agent or a Secured Party to exercise, and no delay in exercising, any right or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right. The rights and remedies herein provided are cumulative and not exclusive of any rights and remedies provided by law.

**Section 13.5. <u>Binding Effect; Benefit of Agreement</u>**.

This Agreement shall be binding upon and inure to the benefit of the Borrower, the Collateral Manager, the Administrative Agent, the Lender Agents, the Collateral Agent, the Collateral Custodian, the Secured Parties and their respective successors and permitted assigns. Each Affected Party and each Indemnified Party shall be an express third party beneficiary of this Agreement.

**Section 13.6. <u>Term of this Agreement</u>**.

This Agreement, including, without limitation, the Borrower's representations and covenants set forth in <u>Articles</u> <u>IV</u> and <u>V</u>, and the Collateral Manager's representations, covenants and duties set forth in <u>Articles</u> <u>VI</u>, <u>V</u> and <u>VI</u>, create and constitute the continuing obligation of the parties hereto in accordance with its terms, and shall remain in full force and effect until the Collection Date; *provided* that, the rights and remedies with respect to any breach of any representation and warranty made or deemed made by the Borrower or the Collateral Manager pursuant to <u>Articles</u> <u>IV</u> and <u>V</u> the indemnification and payment provisions of <u>Article</u> <u>XI</u> and the provisions of <u>Section</u> <u>13.9</u>, <u>Section</u> <u>13.10</u> and <u>Section</u> <u>13.11</u>, shall be continuing and shall survive any termination of this Agreement.

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**Section 13.7. <u>Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue, Service of Process</u>**.

THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.

Each of the Borrower and the Collateral Manager agrees that service of process may be effected by mailing a copy thereof by registered or certified mail, postage prepaid, to the Borrower or the Collateral Manager, as applicable, at its address specified in <u>Annex</u> <u>A</u> to this Agreement or at such other address as the Administrative Agent shall have been notified in accordance herewith. Nothing in this <u>Section</u> <u>13.7</u> shall affect the right of the Lenders, the Lender Agents or the Administrative Agent to serve legal process in any other manner permitted by law.

**Section 13.8. <u>Waiver of Jury Trial</u>**.

TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

**Section 13.9. <u>Costs and Expenses</u>**.

&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 rights of indemnification granted to the Indemnified Parties under <u>Article</u> <u>XI</u> hereof, the Borrower agrees to pay on the first Payment Date occurring at least ten Business Days following written demand therefor, all out-of-pocket costs and expenses of the Administrative Agent (on behalf of the Lenders), the Collateral Agent and the Collateral Custodian incurred in connection with the preparation, execution, delivery, administration (including periodic auditing), syndication, renewal, amendment or modification of, or any waiver or consent issued in connection with, this Agreement and the other documents to be delivered hereunder or in connection herewith, including, without limitation, the reasonable and documented fees and out-of-pocket expenses of counsel for the Administrative Agent (on behalf of the Lenders), the Collateral Agent and the Collateral Custodian with respect thereto and with respect to advising the Administrative Agent (on behalf of the Lenders), the Collateral Agent and the Collateral Custodian as to their respective rights and remedies under this Agreement and the other documents to be delivered hereunder or in connection herewith, and all invoiced out-of-pocket costs and expenses, if any (including reasonable and documented counsel fees and expenses), incurred by the Administrative Agent (on behalf of the Lenders), the Collateral Agent or the Collateral Custodian in connection with the enforcement or potential enforcement of this Agreement or any Transaction Document by such Person and the other documents to be delivered hereunder or in connection herewith.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall pay (on the first Payment Date occurring at least ten Business Days following written demand therefor) all other reasonable and documented costs and expenses (other than Taxes, which are governed by <u>Section</u> <u>2.15</u>) incurred by the Administrative Agent (on behalf of the Lenders), the Collateral Agent and the Collateral Custodian, including, without limitation, all travel costs and expenses incurred by the Administrative Agent (on behalf of the Lenders) in connection with periodic audits of the Borrower's books and records.

**Section 13.10. <u>No Proceedings</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the parties hereto (other than any Conduit Lender), by accepting the benefits of this Agreement, hereby agrees that it will not institute against, or join any other Person in instituting against, any Conduit Lender, the Administrative Agent, or any Liquidity Banks any Insolvency Proceeding so long as any commercial paper issued by the applicable Conduit Lender shall be outstanding and there shall not have elapsed one (1) year and one (1) day (or such longer preference period as shall then be in effect and one (1) day) since the last day on which any such commercial paper shall have been outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the parties hereto (other than the Borrower) hereby agrees that it will not institute against, or join any other Person in instituting against, the Borrower any Insolvency Proceeding so long as there shall not have elapsed one (1) year and one (1) day (or such longer preference period as shall then be in effect and one (1) day) since the Collection Date. The provisions of this <u>Section</u> <u>13.10</u> are a material inducement for the Secured Parties to enter into this Agreement and the transactions contemplated hereby and are an essential term hereof. The parties hereby agree that monetary damages are not adequate for a breach of the provisions of this <u>Section</u> <u>13.10</u> and the Administrative Agent may seek and obtain specific performance of such provisions (including injunctive relief), including, without limitation, in any bankruptcy, reorganization, arrangement, winding up, insolvency, moratorium, winding up or liquidation proceedings, or other proceedings under U.S. federal or state bankruptcy or similar laws of any jurisdiction. The provisions of this paragraph shall survive the termination of this Agreement.

**Section 13.11. <u>Recourse Against Certain Parties</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No recourse under or with respect to any obligation, covenant or agreement (including, without limitation, the payment of any fees or any other obligations) of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager as contained in this Agreement or any other agreement, instrument or document entered into by it pursuant hereto or in connection herewith shall be had against any incorporator, affiliate, stockholder, officer, partner, employee or director of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that the agreements of the Administrative Agent, the Lender Agents, any Secured

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Party, the Borrower, the Collateral Custodian or the Collateral Manager contained in this Agreement and all of the other agreements, instruments and documents entered into by it pursuant hereto or in connection herewith are, in each case, solely the corporate obligations of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager, and that no personal liability whatsoever shall attach to or be incurred by the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian, the Collateral Manager or any incorporator, stockholder, affiliate, officer, partner, employee or director of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager under or by reason of any of the obligations, covenants or agreements of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager contained in this Agreement or in any other such instruments, documents or agreements, or that are implied therefrom, and that any and all personal liability of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager and each incorporator, stockholder, affiliate, officer, partner, employee or director of the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager, or any of them, for breaches by the Administrative Agent, the Lender Agents, any Secured Party, the Borrower, the Collateral Custodian or the Collateral Manager of any such obligations, covenants or agreements, which liability may arise either at common law or at equity, by statute or constitution, or otherwise, is hereby expressly waived as a condition of and in consideration for the execution of this Agreement; *provided* that, the foregoing non-recourse provisions shall in no way affect any rights the Secured Parties might have against any incorporator, affiliate, stockholder, officer, employee or director of the Borrower, the Collateral Custodian or the Collateral Manager to the extent of any fraud, misappropriation, embezzlement or any other financial crime constituting a felony by such Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in this Agreement to the contrary, all amounts, payable or expressed to be payable by the Borrower on, under or in respect of its obligations and liabilities under this Agreement shall be recoverable only from and to the extent of sums in respect of, or calculated by reference to, the Collateral that are received by the Borrower pursuant to the terms and conditions thereof and the proceeds of any realization of enforcement of any Collateral, subject in any case to <u>Section</u> <u>2.7</u>, <u>Section</u> <u>2.8</u> or <u>Section</u> <u>2.9</u>. Upon final realization of such sums and proceeds, none of the parties hereto (other than the Borrower), nor any person acting on their behalf, shall be entitled to take any further steps against the Borrower to recover any sums due but still unpaid and all claims in respect of such sums due but still unpaid shall be extinguished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Agreement to the contrary, no Conduit Lender shall have any obligation to pay any amount required to be paid by it hereunder in excess of any amount available to such Conduit Lender after paying or making provision for the payment of its Commercial Paper Notes. All payment obligations of each Conduit Lender hereunder are contingent on the availability of funds in excess of the amounts necessary to pay its Commercial Paper Notes; and each of the other parties hereto agrees that it will not have a claim under Section 101(5) of the Bankruptcy Code if and to the extent that any such payment obligation owed to it by a Conduit Lender exceeds the amount available to such Conduit Lender to pay such amount after paying or making provision for the payment of its Commercial Paper Notes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding any contrary provision set forth herein, no claim may be made by the Borrower or the Collateral Manager or any other Person against the Collateral Agent, the Administrative Agent, the Collateral Custodian and the Secured Parties or their respective Affiliates, directors, officers, employees, attorneys or agents for any special, indirect, consequential or punitive damages in respect to any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement, or any act, omission or event occurring in connection therewith; and each of the Borrower and the Collateral Manager hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or not accrued and whether or not known or suspected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No obligation or liability to any Obligor under any of the Loans is intended to be assumed by the Collateral Agent, the Administrative Agent, the Collateral Custodian, the Lender Agents and the Secured Parties under or as a result of this Agreement and the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The provisions of this <u>Section</u> <u>13.11</u> shall survive the termination of this Agreement.

**Section 13.12. <u>Protection of Right, Title and Interest in the Collateral; Further Action Evidencing Advances</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Collateral Manager shall cause this Agreement, all amendments hereto and/or all financing statements and continuation statements and any other necessary documents covering the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties, and of the Secured Parties to the Collateral to be promptly recorded, registered and filed, and at all times to be kept recorded, registered and filed, all in such manner and in such places as may be required by law fully to preserve and protect the right, title and interest of the Collateral Agent, for the benefit of the Secured Parties, hereunder to all property comprising the Collateral. The Collateral Manager shall deliver to the Administrative Agent and the Collateral Agent file-stamped copies of, or filing receipts for, any document recorded, registered or filed as provided above, as soon as available following such recording, registration or filing. The Borrower shall cooperate fully with the Collateral Manager in connection with the obligations set forth above and will execute any and all documents reasonably required to fulfill the intent of this <u>Section</u> <u>13.12(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower agrees that from time to time, at its expense, it will promptly authorize, execute and deliver all instruments and documents, and take all actions, that the Collateral Agent or the Administrative Agent may reasonably request in order to perfect, protect or more fully evidence the Advances hereunder and the security interest granted in the Collateral, or to enable the Collateral Agent or the Secured Parties to exercise and enforce their rights and remedies hereunder or under any other Transaction Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Borrower or the Collateral Manager fails to perform any of its obligations hereunder, the Collateral Agent, or the Administrative Agent on its behalf, or any Secured Party may (but shall not be required to) perform, or cause performance of, such obligation; and the Collateral Agent's, the Administrative Agent's or such Secured Party's costs and expenses incurred in connection therewith shall be payable by the Borrower as provided in <u>Article</u> <u>XI</u>. The Borrower irrevocably authorizes each of the Collateral Agent and the Administrative Agent and

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appoints the each of the Collateral Agent and the Administrative Agent as its attorney-in-fact to act on behalf of the Borrower (i) to execute on behalf of the Borrower as debtor and to file financing statements necessary or desirable in either of the Administrative Agent's or the Collateral Agent's sole discretion to perfect and to maintain the perfection and priority of the interest of the Secured Parties in the Collateral, including those that describe the Collateral as "all assets," or words of similar effect, and (ii) to file a carbon, photographic or other reproduction of this Agreement or any financing statement with respect to the Collateral as a financing statement in such offices as either of the Administrative Agent or the Collateral Agent in its sole discretion deems necessary or desirable to perfect and to maintain the perfection and priority of the interests of the Secured Parties in the Collateral. This appointment is coupled with an interest and is irrevocable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Without limiting the generality of the foregoing, the Borrower will, not earlier than six (6) months and not later than three (3) months prior to the fifth (5th) anniversary of the date of filing of the financing statement referred to in <u>Section</u> <u>3.1</u> or any other financing statement filed pursuant to this Agreement or in connection with any Advance hereunder, unless the Collection Date shall have occurred:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) authorize, execute and deliver and file or cause to be filed an appropriate continuation statement with respect to such financing statement; 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;(ii) deliver or cause to be delivered to the Collateral Agent and the Administrative Agent an opinion of the counsel for the Borrower, in form and substance reasonably satisfactory to the Administrative Agent, confirming and updating the opinion delivered pursuant to <u>Section</u> <u>3.1</u> with respect to perfection and otherwise to the effect that the security interest hereunder continues to be an enforceable and perfected security interest, subject to no other Liens of record except as provided herein or otherwise permitted hereunder, which opinion may contain usual and customary assumptions, limitations and exceptions.

**Section 13.13. <u>Confidentiality</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the Administrative Agent, the Lender Agents, the Secured Parties, the Collateral Manager, the Collateral Custodian, the Collateral Agent and the Borrower shall maintain and shall cause each of its employees and officers to maintain the confidentiality of the Agreement and all information with respect to the other parties, including all information regarding the business and beneficial ownership of the Borrower and the Collateral Manager hereto and their respective businesses obtained by it or them in connection with the structuring, negotiating and execution of the transactions contemplated herein, except that each such party and its officers and employees may (i) disclose such information to its external accountants, investigators, auditors, attorneys, investors, prospective investors or other agents engaged by such party in connection with any due diligence or comparable activities with respect to the transactions and Loans contemplated herein and the agents of such Persons ("<u>Excepted Persons</u>"); *provided* that, each Excepted Person shall, as a condition to any such disclosure, agree for the benefit of the Administrative Agent, the Lender Agents, the Secured Parties, the Collateral Manager, the Collateral Custodian, the Collateral Agent and the Borrower that such information shall be used solely in connection with such Excepted Person's evaluation of, or relationship with, the Borrower

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and its affiliates, (ii) disclose the existence of the Agreement, but not the financial terms thereof, (iii) disclose such information as is required by Applicable Law and (iv) disclose the Agreement and such information in any suit, action, proceeding or investigation (whether in law or in equity or pursuant to arbitration) involving any of the Transaction Documents for the purpose of defending itself, reducing its liability, or protecting or exercising any of its claims, rights, remedies, or interests under or in connection with any of the Transaction Documents. It is understood that the financial terms that may not be disclosed except in compliance with this <u>Section</u> <u>13.13(a)</u> include, without limitation, all fees and other pricing terms, and all Termination Events, Collateral Manager Defaults, and priority of payment provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Anything herein to the contrary notwithstanding, each of the Borrower and the Collateral Manager hereby consents to the disclosure of any nonpublic information with respect to it (i) to the Administrative Agent, the Lender Agents, the Collateral Custodian, the Collateral Agent or the Secured Parties by each other, (ii) by the Administrative Agent, the Lender Agents, the Collateral Custodian, the Collateral Agent and the Secured Parties to any prospective or actual assignee or participant of any of them provided that such Person would be permitted (absent any consent requirement) to be an assignee or participant pursuant to the terms hereof and such Person agrees to hold such information confidential in accordance with the terms hereof, or (iii) by the Administrative Agent, the Lender Agents, the Collateral Custodian, the Collateral Agent and the Secured Parties to any Rating Agency, any commercial paper dealer or provider of a surety, guaranty or credit or liquidity enhancement to any Lender or any Person providing financing to, or holding equity interests in, any Conduit Lender, as applicable, and to any officers, directors, employees, outside accountants and attorneys of any of the foregoing, provided each such Person is informed of the confidential nature of such information. In addition, the Secured Parties, the Administrative Agent, the Collateral Custodian, the Collateral Agent and the Lender Agents, may disclose any such nonpublic information as required pursuant to any law, rule, regulation, direction, request or order of any judicial, administrative or regulatory authority or proceedings (whether or not having the force or effect of law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything herein to the contrary, the foregoing shall not be construed to prohibit (i) disclosure of any and all information that is or becomes publicly known; (ii) disclosure of any and all information (a) if required to do so by any applicable statute, law, rule or regulation, (b) to any government agency or regulatory body having or claiming authority to regulate or oversee any respects of the Administrative Agents', the Lender Agents', the Secured Parties', the Collateral Custodian's, the Collateral Agent's or the Borrower's business or that of their affiliates, (c) pursuant to any subpoena, civil investigative demand or similar demand or request of any court, regulatory authority, arbitrator or arbitration to which the Administrative Agent, the Lender Agents, the Secured Parties, the Collateral Custodian, the Collateral Agent or the Borrower or an officer, director, employer, shareholder or affiliate of any of the foregoing is a party, (d) in any preliminary or final offering circular, registration statement or contract or other document approved in advance by the Borrower or the Collateral Manager or (e) to any affiliate, independent or internal auditor, agent (including any potential sub-or-successor servicer), employee or attorney of the Collateral Custodian or Collateral Agent having a need to know the same; *provided* that, the Collateral Custodian or Collateral Agent advises such recipient of the confidential nature of the information being disclosed and such person agrees to the terms hereof for the benefit of the Borrower and the Collateral Manager; or (iii) any other disclosure authorized by the Borrower or the Collateral 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;(d) Notwithstanding any other provision of this Agreement, the Borrower and the Collateral Manager shall each have the right to keep confidential from the Administrative Agent, the Lender Agents, the Collateral Custodian, the Collateral Agent and/or the Secured Parties, for such period of time as the Borrower and/or the Collateral Manager, as the case may be, determines is reasonable (i) any information that the Borrower and/or the Collateral Manager, as the case may be, reasonably believes to be in the nature of trade secrets and (ii) any other information that the Borrower, the Collateral Manager or any of their Affiliates, or the officers, employees or directors of any of the foregoing, is required by law as evidenced by an Opinion of Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each of the Administrative Agent, the Lender Agents, the Secured Parties, the Collateral Custodian and the Collateral Agent will keep the information of the Obligors confidential in the manner required by the applicable Underlying Instruments.

**Section 13.14. <u>Execution in Counterparts; Severability; Integration</u>**.

This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts (including by facsimile), each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. In case any provision in or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. This Agreement, the other Transaction Documents and any agreements or letters (including fee letters) executed in connection herewith contain the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings. This Agreement shall be valid, binding, and enforceable against a party when executed and delivered by an authorized individual on behalf of the party by means of (i) an original manual signature; (ii) a faxed, scanned, or photocopied manual signature, or (iii) any other electronic signature permitted by the federal Electronic Signatures in Global and National Commerce Act, state enactments of the Uniform Electronic Transactions Act, and/or any other relevant electronic signatures law, including any relevant provisions of the UCC (collectively, "<u>Signature Law</u>"), in each case to the extent applicable. Each faxed, scanned, or photocopied manual signature, or other electronic signature, shall for all purposes have the same validity, legal effect, and admissibility in evidence as an original manual signature. Each party hereto shall be entitled to conclusively rely upon, and shall have no liability with respect to, any faxed, scanned, or photocopied manual signature, or other electronic signature, of any other party and shall have no duty to investigate, confirm or otherwise verify the validity or authenticity thereof.

**Section 13.15. <u>Waiver of Setoff</u>**.

Each of the parties hereto 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.

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**Section 13.16. <u>Assignments by the Lenders</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With the written consent of the Borrower and the Administrative Agent (such consent, in each case, not to be unreasonably withheld or delayed), each Lender and their respective successors and assigns may at any time assign, or grant a security interest or sell a participation interest in (x) this Agreement and such Lender's rights and obligations hereunder and interest herein in whole or in part (including by way of the sale of participation interests) and/or (y) any Advance (or portion thereof) (each such assignment, grant or sale of a participation interest, a "<u>Lender Assignment</u>") to any Person other than the Borrower or an Affiliate thereof; *provided* that, any Lender Assignment will 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;(i) at any time (1) no Lender Assignment shall be made unless such transfer is made only to a "qualified purchaser" as defined in the 1940 Act and the rules and regulations promulgated thereunder, (2) the assignee executes and delivers to the Collateral Manager, the Borrower and the Administrative Agent a fully executed Joinder Supplement substantially in the form of <u>Exhibit</u> <u>K</u> hereto and a transferee letter substantially in the form of <u>Exhibit</u> <u>J</u> hereto (the "<u>Transferee Letter</u>"), (3) any Institutional Lender shall not need the consent of the Borrower with respect to any Lender Assignment (x) to an Affiliate or its related Lender Agent or (y) required by any change in Applicable Law, (4) any Conduit Lender shall not need the consent of the Borrower with respect to any Lender Assignment to a Liquidity Bank, an Affiliate or its related Lender Agent or to a third party pursuant to the terms of a Liquidity Agreement and (5) the parties to any such Lender Assignment shall execute and deliver to the related Lender Agent for its acceptance and recording in its books and records, such agreement or document as may be satisfactory to such parties and the applicable Lender 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;(ii) prior to the occurrence of a Termination Event, (1) each Lender Assignment shall be made in a minimum amount of $10,000,000 (and, if any such transfer is proposed to be less than $10,000,000, the Borrower and the Administrative Agent shall not be subject to the standard that their respective consent to such transfer and assignment not be unreasonably withheld or delayed); and (2) no Lender Assignment may be effectuated to any Prohibited Transferee, however, a Lender may propose a Lender Assignment to a banking institution with a long term unsecured debt rating of less than the ratings set forth in clause (iii) the definition of Prohibited Transferee but each of the Borrower and the Administrative Agent shall not be subject to the standard that their respective consent to such transfer and assignment not be unreasonably withheld or delayed; 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;(iii) after a Termination Event has occurred, a Lender may assign its rights and obligations hereunder to any Person (including a Prohibited Transferee) with the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed) but without any consent from the Borrower.

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The Borrower shall not assign or delegate, or grant any interest in, or permit any Lien to exist upon, any of the Borrower's rights, obligations or duties under this Agreement without the prior written consent of the Administrative Agent. Notwithstanding anything contained in this Agreement to the contrary, (1) a Lender shall not need prior consent of the Borrower to consolidate with or merge into any other Person or convey or transfer substantially all of its properties and assets, including without limitation any Advance (or portion thereof) to any Person and (2) if any Lender becomes a Defaulting Lender, unless such Lender shall have been deemed to no longer be a Defaulting Lender pursuant to <u>Section</u> <u>2.22(b)</u>, then, in each case, the Administrative Agent shall have the right to cause such Person to assign its entire interest in the Advances and this Agreement to a transferee selected by the Administrative Agent, in an assignment which satisfies the conditions set forth in the first sentence of this <u>Section</u> <u>13.16(a)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Administrative Agent, acting solely for this purpose as a non-fiduciary agent of the Borrower, shall maintain at the Administrative Agent's office a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts (and stated interest) of the Advances owing to, each Lender pursuant to the terms hereof from time to time (the "<u>Register</u>"). The entries in the Register shall be conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. If a Lender sells a participation, such Lender shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant's interest in the Advances or other obligations under the Transaction Documents (the "<u>Participant Register</u>"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant's interest in any commitments, loans or its other obligations under any Transaction Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations and Section 1.163-5(b) of the proposed Treasury Regulations. The entries in the Participant Register shall be conclusive and binding for all purposes, absent manifest error, and the Administrative Agent 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower agrees that each participant of an interest in any Advance shall be entitled to the benefits of <u>Sections 2.14</u> and <u>2.15</u> (subject to the requirements and limitations therein, including the requirements under <u>Section</u> <u>2.15(d)</u>, <u>(e)</u>, <u>(f)</u>, and <u>(g)</u> (it being understood that the documentation required under <u>Section</u> <u>2.15(d)</u>, <u>(e)</u>, <u>(f)</u>, and <u>(g)</u> 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 that such participant shall not be entitled to receive any greater payment under <u>Sections 2.14</u> or <u>2.15</u>, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from either (i) the introduction of or any change following the date the participant acquired the applicable participation (including, without limitation, any change by way of imposition or increase of reserve requirements) in or in the interpretation of any Applicable Law by any Governmental Authority or (ii) the compliance by such participant with any guideline or request from any central bank or other Governmental Authority made or issued after the date the participant acquired the applicable participation (whether or not having the force of 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;(d) Notwithstanding any other provision of this <u>Section</u> <u>13.16</u>, any Lender may at any time pledge or grant a security interest in all or any portion of its rights (including, without limitation, rights to payment of principal and interest) under this Agreement to secure obligations of such Lender to a Federal Reserve Bank, without notice to or consent of the Borrower or the Administrative Agent; *provided* that, no such pledge or grant of a security interest shall release such Lender from any of its obligations hereunder, or substitute any such pledgee or grantee for such Lender as a party hereto.

**Section 13.17. <u>Heading and Exhibits</u>**.

The headings herein are for purposes of references only and shall not otherwise affect the meaning or interpretation of any provision hereof. The schedules and exhibits attached hereto and referred to herein shall constitute a part of this Agreement and are incorporated into this Agreement for all purposes.

**Section 13.18. <u>Non</u><u>-Confidentiality of Tax Treatment</u>**.

All parties hereto agree that each of them and each of their employees, representatives, and other agents may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any kind (including, without limitation, opinions or other tax analyses) that are provided to any of them relating to such tax treatment and tax structure. "Tax treatment" and "tax structure" shall have the same meaning as such terms have for purposes of Treasury Regulation Section 1.6011-4; *provided* that, with respect to any document or similar item that in either case contains information concerning the tax treatment or tax structure of the transaction as well as other information, the provisions of this <u>Section</u> <u>13.18</u> shall only apply to such portions of the document or similar item that relate to the tax treatment or tax structure of the transactions contemplated hereby.

**Section 13.19. <u>Intent of the Parties</u>**.

All of the parties hereto intend that the Borrower's obligations to the Lenders and the Lender Agents incurred through the Indebtedness borrowed pursuant to this Agreement to be "loans" and not "securities" for all purposes.

**Section 13.20. <u>Recognition of the U.S. Special Resolution Regimes</u>.**

To the extent that this Agreement and/or any other Transaction Document constitutes a QFC, the Borrower agrees with each Secured Party as of the Closing Date as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of this Agreement and/or such other Transaction Document, and any interest and obligation in or under this Agreement and/or such other Transaction Document 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 this Agreement and/or such other the Transaction Document, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a Covered Party or a BHC Act Affiliate of such Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement and/or such other Transaction Document 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 this Agreement and/or such other Transaction Document were governed by the laws of the United States or a state of the United States.

**[Remainder of Page Intentionally Left Blank.]** 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.

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| | | |
|:---|:---|:---|
| **THE BORROWER:** | **APCF SPV I, LLC**, as the Borrower | **APCF SPV I, LLC**, as the Borrower |
|  | By: Audax Management Company (NY) LLC, its manager | By: Audax Management Company (NY) LLC, its manager |
|  | By: | /s/ Michael Rettagliata |
|  |  | Name: Michael Rettagliata |
|  |  | Title: Authorized Signatory |

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**[Signatures Continued on the Following Page]** 

APCF SPV I, LLC

Loan and Servicing Agreement

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|:---|:---|:---|
| **THE EQUITYHOLDER:** | **AUDAX PRIVATE CREDIT FUND, LP**, as the Equityholder | **AUDAX PRIVATE CREDIT FUND, LP**, as the Equityholder |
|  | By: Audax Private Credit Business, LP, its manager | By: Audax Private Credit Business, LP, its manager |
|  | By: Audax Holdings I, L.L.C., its general partner | By: Audax Holdings I, L.L.C., its general partner |
|  | By: | /s/ Michael Rettagliata |
|  |  | Name: Michael Rettagliata |
|  |  | Title: Authorized Signatory |

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| **THE COLLATERAL MANAGER:** | **AUDAX MANAGEMENT COMPANY (NY), LLC,** as the Collateral Manager | **AUDAX MANAGEMENT COMPANY (NY), LLC,** as the Collateral Manager |
|  | By: | /s/ Michael Rettagliata |
|  |  | Name: Michael Rettagliata |
|  |  | Title: Authorized Signatory |

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| **THE ADMINISTRATIVE AGENT:** | **WELLS FARGO BANK, NATIONAL ASSOCIATION,** as the Administrative Agent | **WELLS FARGO BANK, NATIONAL ASSOCIATION,** as the Administrative Agent |
|  | By: | /s/ R. Beale Pope |
|  |  | Name: R. Beale Pope |
|  |  | Title: Managing Director |

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| **THE INSTITUTIONAL LENDER:** | **WELLS FARGO BANK, NATIONAL ASSOCIATION**, as an Institutional Lender | **WELLS FARGO BANK, NATIONAL ASSOCIATION**, as an Institutional Lender |
|  | By: | /s/ R. Beale Pope |
|  |  | Name: R. Beale Pope |
|  |  | Title: Managing Director |

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| **THE SWINGLINE LENDER:** | **WELLS FARGO BANK, NATIONAL ASSOCIATION,** as Swingline Lender | **WELLS FARGO BANK, NATIONAL ASSOCIATION,** as Swingline Lender |
|  | By: | /s/ R. Beale Pope |
|  |  | Name: R. Beale Pope |
|  |  | Title: Managing Director |

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| **THE COLLATERAL AGENT:** | **COMPUTERSHARE TRUST COMPANY, N.A.,** not in its individual capacity but solely as the Collateral Agent | **COMPUTERSHARE TRUST COMPANY, N.A.,** not in its individual capacity but solely as the Collateral Agent |
|  | By: | /s/ Michael J. Baker |
|  |  | Name: Michael J. Baker |
|  |  | Title: Vice President |

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| **THE COLLATERAL CUSTODIAN:** | **COMPUTERSHARE TRUST COMPANY, N.A.,** not in its individual capacity but solely as the Collateral Custodian | **COMPUTERSHARE TRUST COMPANY, N.A.,** not in its individual capacity but solely as the Collateral Custodian |
|  | By: | /s/ Michael J. Baker |
|  |  | Name: Michael J. Baker |
|  |  | Title: Vice President |

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**<u>Annex A</u>**

**AUDAX MANAGEMENT COMPANY (NY), LLC**

320 Park Avenue, 19th Floor

New York, NY 10022

Attention: Michael E. Rettagliata

Email: mrettagliata@audaxprivatedebt.com

**APCF SPV I, LLC** 

c/o Audax Management Company (NY), LLC

320 Park Avenue, 19th Floor

New York, NY 10022

Attention: Michael E. Rettagliata

Email: mrettagliata@audaxprivatedebt.com

**AUDAX PRIVATE CREDIT FUND, LP** 

c/o Audax Management Company (NY), LLC

320 Park Avenue, 19th Floor

New York, NY 10022

Attention: Michael E. Rettagliata

Email: mrettagliata@audaxprivatedebt.com

**WELLS FARGO BANK, NATIONAL ASSOCIATION** 

*as Administrative Agent* 

550 South Tryon Street

MAC D1086-051

Charlotte, NC 28202

Attention: Corporate Debt Finance

Confirmation: (704) 410-2450

All electronic dissemination of Notices should be sent toscp.mmloans@wellsfargo.com

**WELLS FARGO BANK, NATIONAL ASSOCIATION** 

*as Institutional Lender and Swingline Lender* 

550 South Tryon Street

MAC D1086-051

Charlotte, NC 28202

Attention: Corporate Debt Finance

Confirmation: (704) 410-2377

All electronic dissemination of Notices should be sent to scp.mmloans@wellsfargo.com and agencyservices.requests@wellsfargo.com

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**<u>Annex A (Continued)</u>**

**COMPUTERSHARE TRUST COMPANY, N.A.**,

*as Collateral Agent* 

9062 Old Annapolis Road

Columbia, MD 21045

Attention: CLO Trust Services – APCF SPV I, LLC

Email: CCTAudax@computershare.com

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**<u>Annex B</u>**

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| | |
|:---|:---|
| Conduit Lender | Commitment |
|  N/A | N/A |
| Institutional Lender | Commitment |
|  Wells Fargo Bank, National Association | $500000000 |

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## Exhibit 21.1

**Exhibit 21.1** 

**LIST OF SUBSIDIARIES** 

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| | |
|:---|:---|
| **Name** | **Jurisdiction** |
| APCF SPV I, LLC | Delaware |
| Audax Private Credit Subsidiary, LLC | Delaware |
| APCF Equity, LLC | Delaware |

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