Document:

Collateral Management Agreement

 Exhibit 10.11.3 
 INDEX 
 COLLATERAL MANAGEMENT AGREEMENT 
 This Agreement, dated as of March 21, 2006, is entered into by and between NewStar Structured Finance Opportunities, LLC, a Delaware limited
liability company, (together with successors and assigns permitted hereunder, the “Issuer”), and NewStar Financial, Inc., a Delaware corporation (“NewStar”), as collateral manager (the “Collateral Manager”). 

WITNESSETH: 
 WHEREAS, pursuant to a Note
Purchase Agreement dated as of the date hereof (as amended, restated, modified and/or supplemented from time to time, the “Note Purchase Agreement”), among the Issuer, NewStar, the Investors party thereto, IXIS Financial Products Inc., as
agent for the Investors (the “Investor Agent”) and U.S. Bank National Association (“U.S. Bank”), as trustee (the “Trustee”), the Issuer intends to issue Notes pursuant to which the Investors will make Advances from time
to time secured primarily by Collateral Debt Securities; 
 WHEREAS, the Issuer intends to pledge certain Collateral Debt Securities,
Eligible Investments and certain other assets (collectively, the “Collateral”) to the Trustee pursuant to a Security Agreement dated as of the date hereof by and between the Issuer and U.S. Bank in its capacities as Trustee and Custodian;

 WHEREAS, the Issuer wishes to enter into this Agreement, pursuant to which the Collateral Manager agrees to perform, on behalf of the
Issuer, certain duties with respect to the Collateral in the manner and on the terms set forth herein and to provide such additional services as are consistent with the terms of this Agreement and the Note Purchase Agreement; and 
 WHEREAS, the Collateral Manager has the capacity to provide the services required hereby and is prepared to perform such services upon the terms and
conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual agreements herein set forth, the parties hereto agree as
follows: 
 Section 1. Definitions. 
 Terms used but not defined herein shall have the meanings set forth in the Note Purchase Agreement. 
 Section 2. Duties of the Collateral Manager. 
 Subject to and in accordance with the Note Purchase Agreement and this
Agreement, the Collateral Manager shall provide services to the Issuer as follows: 
 (a) Duties Specified Herein and in Note Purchase
Agreement; Power of Attorney. The Collateral Manager agrees to supervise and direct the investment and reinvestment of the Collateral and shall perform on behalf of the Issuer those investment-related duties and functions assigned to the Issuer

 
in the Note Purchase Agreement and the duties that have been expressly delegated to the Collateral Manager in this Agreement and in the Note Purchase
Agreement. Any reference in this Agreement to the Collateral Manager’s duties or obligations hereunder shall also include those duties expressly delegated to it in the Note Purchase Agreement and those duties of the Issuer under the Note
Purchase Agreement which the Collateral Manager has agreed herein to perform on the Issuer’s behalf; it being understood that the Collateral Manager shall have no obligation hereunder to perform any duties other than its duties as specified
herein or in the Note Purchase Agreement. 
 In furtherance of the foregoing, the Issuer hereby appoints the Collateral Manager the
Issuer’s true and lawful agent and attorney-in-fact, with full power of substitution and full authority in the Issuer’s name, place and stead, and at the Collateral Manager’s expense and without any necessary further approval of the
Issuer, in connection with the performance of the Collateral Manager’s duties provided for in this Agreement, including, without limitation, the following powers: (i) to buy, sell, exchange, convert and otherwise trade Collateral Debt
Securities and Eligible Investments, (ii) to sell, exchange or otherwise dispose of any equity securities (including Margin Stock) and (iii) to negotiate, execute (under hand, under seal or as a deed) and deliver all necessary and
appropriate documents and instruments on behalf of the Issuer to the extent necessary or appropriate to perform the services referred to in the first paragraph of this Section 2(a). The foregoing power of attorney is a continuing power, coupled
with an interest, and shall remain in full force and effect until revoked by the Issuer in writing by virtue of the termination of this Agreement pursuant to Section 11 hereof or an assignment of this Agreement pursuant to Section 13
hereof; provided that any such revocation shall not affect any transaction initiated prior to such revocation. Nevertheless, if so requested by the Collateral Manager or a purchaser of a Collateral Debt Security, an Eligible Investment or equity
securities, the Issuer shall ratify and confirm any such sale or other disposition by executing and delivering to the Collateral Manager or such purchaser all proper bills of sale, assignments, releases and other instruments as may be designated in
any such request. 
 (b) Standard of Care. The Collateral Manager shall perform its obligations hereunder with reasonable care, using
a degree of skill and attention no less than that which the Collateral Manager (i) exercises with respect to comparable assets that it manages for itself and (ii) exercises with respect to comparable assets that it manages for others, and
in a manner consistent with practices and procedures followed by institutional managers of national standing relating to assets of the nature and character of the Collateral, except as expressly provided otherwise in this Agreement and/or the Note
Purchase Agreement. To the extent not inconsistent with the foregoing, the Collateral Manager shall follow its customary standards, policies and procedures in performing its duties hereunder. The Collateral Manager covenants and agrees, in
performing its duties hereunder, to act in a prudent and commercially reasonable manner in discharging its duties under this Agreement and that it will seek, on a reasonable good faith efforts basis but subject to the applicable restrictions set
forth herein and in the Note Purchase Agreement, to manage the Collateral in such a way that there will be sufficient funds available on each Payment Date in accordance with the priorities set forth in the Note Purchase Agreement. 
 (c) Monitoring and Reporting. The Collateral Manager shall monitor the Collateral, on behalf of the Issuer, on an ongoing basis and provide to or
at the direction of the Issuer all reports, schedules and other data which the Issuer is required to prepare, deliver or furnish under the Note Purchase Agreement. 
 (d) Selection and Management of Collateral; Special Redemption. The Collateral Manager shall in accordance with the provisions of the Note Purchase Agreement and this Agreement (1) select all Collateral
Debt Securities and Eligible Investments to be acquired by the Issuer and pledged to the Trustee pursuant to the Financing Documents and (2) facilitate the acquisition and settlement of Collateral Debt Securities and Eligible Investments. The
Collateral Manager may take any of the following actions on behalf of the Issuer or, subject to and in accordance with the applicable provisions of 

  

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the Note Purchase Agreement and this Agreement, direct the Investor Agent or the Trustee in writing to take any of the following actions, with respect to a
Collateral Debt Security or Eligible Investment or equity securities: 
 (i) retain such Collateral Debt Security or Eligible
Investment; 
 (ii) dispose of such Collateral Debt Security or Eligible Investment or equity securities in the open market or
otherwise; 
 (iii) acquire, in substitution for or in addition to any one or more Collateral Debt Securities or Eligible
Investments included in the Collateral, one or more additional Collateral Debt Securities or Eligible Investments; 
 (iv) if
applicable, tender such Collateral Debt Security or Eligible Investments pursuant to a tender offer, redemption, exchange offer, conversion or other similar action (an “Offer”); 
 (v) consent to any proposed amendment, modification or waiver; 
 (vi) retain or dispose of any securities or other property (if other than cash) received pursuant to an Offer; 
 (vii) waive any default with respect to any Defaulted Securities; 
 (viii) vote to accelerate the maturity of any Defaulted Securities; or 
 (ix) exercise any other rights or remedies with respect to a Collateral Debt Security or Eligible Investment as provided in the related
Underlying Instruments or take any other action consistent with the terms of the Note Purchase Agreement. 
 Section 3.
Brokerage. 
 The Collateral Manager shall cause any purchase or sale of any Collateral Debt Security to be conducted on arm’s
length terms, and shall use commercially reasonable efforts to obtain the best overall terms and best execution of all orders placed with respect to the Collateral, considering all circumstances. Subject to the objective of obtaining best overall
terms and best execution, the Collateral Manager may take into consideration research and other brokerage services furnished to the Collateral Manager or its Affiliates by brokers and dealers in compliance with Section 28(e) of the Securities
Exchange Act of 1934, as amended. Such services may be used by the Collateral Manager or its Affiliates in connection with its respective other advisory activities or investment operations. The Collateral Manager may aggregate sales and purchase
orders of securities placed with respect to the Collateral with similar orders being made simultaneously for other accounts managed by the Collateral Manager or with similar orders being made simultaneously for accounts of its Affiliates, if in the
Collateral Manager’s reasonable judgment such aggregation is consistent with the objective of obtaining best execution and shall not result in an overall economic loss to the Issuer, taking into consideration the advantageous selling or
purchase price, brokerage commission and other expenses. When any aggregate sales or purchase orders occur, the Collateral Manager (and any of its Affiliates involved in such transactions) shall allocate the executions among the accounts in a manner
deemed equitable by the Collateral Manager. In addition to the foregoing and subject to the objective of obtaining best overall terms and best execution and to the extent permitted by applicable law, the Collateral Manager may, on behalf of the
Issuer, direct the Issuer in writing to acquire any and all of the Eligible Investments or other 

  

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Collateral from, or sell Collateral Debt Securities or other Collateral to, the Collateral Manager’s Affiliates, the Investor Agent, the Investors, the
Trustee or their respective Affiliates. 
 Section 4. Additional Activities of the Collateral Manager. 
 (a) Other Activities. Nothing herein shall prevent the Collateral Manager or any of its Affiliates from engaging in other businesses, or from
rendering services of any kind to the Issuer and its Affiliates, the Investor Agent, the Investors, the Trustee or any other Person or entity to the extent permitted by applicable law. Without limiting the generality of the foregoing, the Collateral
Manager, its Affiliates and the directors, members, officers, employees and agents of the Collateral Manager and its Affiliates may, subject to any limits specified in the Note Purchase Agreement: 
 (i) serve as directors (whether supervisory or managing), officers, partners, employees, agents, nominees or signatories for any issuer of
any obligations included in the Collateral or their respective Affiliates, to the extent permitted by their Underlying Instruments, as from time to time amended, or by any resolutions duly adopted by the Issuer, its Affiliates or any issuer of any
obligations included in the Collateral or its Affiliates, pursuant to their respective Underlying Instruments; provided that, in the reasonable judgment of the Collateral Manager, such activity will not have a material adverse effect on any
item of the Collateral; 
 (ii) receive fees for services of any nature rendered to the issuer of any obligations included in
the Collateral or their Affiliates; provided that, in the reasonable judgment of the Collateral Manager, such activity will not have a material adverse effect on any item of the Collateral and provided, further, that, with respect to
such services, the Collateral Manager is not acting as agent of the Issuer or otherwise receiving fees related to the purchase by the Issuer of any obligations included in the Collateral; and 
 (iii) be a secured or unsecured creditor of, or hold an equity interest in, or own or hold notes issued by, the Issuer, its Affiliates or
any issuer of any obligation included in the Collateral; provided that the Collateral Manager may not take any such actions (other than the holding of Notes issued by the Issuer) (x) unless, in the reasonable judgment of the Collateral
Manager, such activity will not affect the ability of the Issuer, the Investor Agent or the Trustee to enforce its respective rights with respect to any Collateral or (y) if, in the opinion of counsel to the Issuer (delivered to the Collateral
Manager), such action would require registration of the Issuer as an “investment company” under the Investment Company Act or violate any applicable provisions of federal, state or non-U.S. law or any law, rule or regulation of any
governmental body or agency having jurisdiction over the Issuer. 
 (b) Advisory Services to Others. It is understood that the
Collateral Manager and any of its Affiliates may engage in any other business and furnish investment and advisory services to others, including Persons that may have investment policies similar to those followed by the Collateral Manager with
respect to the Collateral and that may own securities of the same class, or which are the same type, as the Collateral Debt Securities or other securities of the issuers of Collateral Debt Securities or Eligible Investments provided that,
with respect to such services, the Collateral Manager is not acting as agent of the Issuer. The Collateral Manager will be free, in its sole discretion, to make recommendations to others, or effect transactions on behalf of itself or for others,
which may be the same as or different from those effected with respect to the Collateral. 
 (c) Non-Public Information. Unless the
Collateral Manager determines in its reasonable judgment that such purchase or sale may be appropriate, the Collateral Manager may refrain from directing the purchase or sale hereunder of securities issued by (i) Persons of which the Collateral

  

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Manager, its Affiliates or any of its or their officers, directors or employees are directors or officers, (ii) Persons for which the Collateral Manager or
its Affiliates act as financial adviser or underwriter or (iii) Persons about which the Collateral Manager or any of its Affiliates have information that the Collateral Manager determines might prohibit it from trading such securities in accordance
with applicable law. The Collateral Manager shall not be obligated to pursue any particular investment or opportunity with respect to the Collateral. 
 Section 5. Conflicts of Interest. 
 The Collateral Manager shall not have authority to direct
the Issuer to purchase or to sell any Collateral from or to the Collateral Manager or any of its Affiliates as principal, or from or to any other account, portfolio or person for which the Collateral Manager or any of its Affiliates serves as
investment advisor, unless (i) the terms and conditions thereof are no less favorable to the Issuer as the terms it would obtain in a comparable arm’s length transaction with a non-Affiliate, (ii) the transactions are effected in
accordance with all applicable laws (including, without limitation, the Investment Advisers Act of 1940, as amended, and the rules thereunder (the “Advisers Act”)) and (iii) the transactions are exempt from the prohibited transaction
rules of the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations thereunder, and the Code and such transfer is otherwise made in accordance with Section 5.21 of the Note Purchase Agreement. 
 Section 6. Maintenance of Books and Records. 
 The Collateral Manager shall keep proper books of record and accounts in which full, true and correct entries in accordance with GAAP shall be made of all material financial matters and transactions in relation to its
business and activities; and shall permit representatives of the Investors (at such Investors’ expense unless an Event of Default shall have occurred and be continuing, in which case any such costs and expenses attributable thereto shall be at
the Collateral Manager’s expense) to visit and inspect any of the properties of the Collateral Manager, to examine and make copies of any of the books and records of the Collateral Manager and to discuss its affairs, finances and accounts with
its officers, employees and independent public accountants, all at reasonable times and as often as may reasonably be desired; provided that any visitations, inspections, examinations, copying and discussions involving the Collateral Manager
or its properties or books and records shall be limited to its activities relating to the Collateral. 
 Section 7. Information.

 The Collateral Manager shall deliver to the Investor Agent the financial statements of the Collateral Manager required by, and within the
times provided in, Section 5.1 of the Note Purchase Agreement. 
 Section 8. Compensation. 
 (a) Management Fees. On each Payment Date, the Issuer shall pay to the Collateral Manager, for services rendered under this Agreement, the
Collateral Management Fee in accordance with, and subject to, Section 2.8(f) of the Note Purchase Agreement. 
 (b) Expenses of
Collateral Manager. The Collateral Manager shall be responsible for its costs and expenses in performing its obligations hereunder. 
 (c) Fees Payable on Termination, Resignation or Removal. If this Agreement is terminated for any reason or the entity then serving as Collateral Manager hereunder resigns or is 

  

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removed, the Collateral Management Fee owing to such entity as provided in Section 8(a) hereof shall be payable through the effective date of the
termination, resignation or removal of such entity, prorated for any partial periods between Payment Dates during which this Agreement was in effect with respect to such entity, and such prorated amount shall be due and payable on the first Payment
Date following the date of such termination on which funds are available for such purpose pursuant to Section 2.8(f) of the Note Purchase Agreement. 
 Section 9. Limits of Collateral Manager Responsibility. 
 The Collateral Manager assumes no
responsibility under this Agreement other than to perform the Collateral Manager’s duties called for hereunder and under the terms of the Note Purchase Agreement applicable to the Collateral Manager, in good faith and, subject to the standard
of conduct described in the next succeeding sentence, shall not be responsible for any action of the Issuer, the Investor Agent or the Trustee in following or declining to follow any advice, recommendation or direction of the Collateral Manager. The
Collateral Manager (and its Affiliates, investors, members, managers, officers, directors, employees, agents and professionals) shall not be liable to the Issuer, the Investor Agent, the Investors, the Trustee or any other person for any losses,
claims, damages, judgments, assessments, costs or other liabilities (collectively, “Liabilities”) incurred by any such person which arise out of or in connection with the performance by the Collateral Manager of its duties hereunder,
except, in the case of the Collateral Manager only, by reason of acts or omissions constituting bad faith, willful misconduct or gross negligence in the performance of, or reckless disregard with respect to, the obligations of the Collateral Manager
hereunder and under the terms of the Note Purchase Agreement applicable to the Collateral Manager. 
 Section 10. No Joint Venture;
Non-Consolidation Matters. 
 (a) The Issuer and the Collateral Manager are not partners or joint venturers with each other, and nothing
herein shall be construed to make them such partners or joint venturers or impose any liability as such on either of them. The Collateral Manager’s relation to the Issuer shall be deemed to be that of an independent contractor. 
 (b) The Issuer hereby acknowledges that the Investors are entering into the transactions contemplated by the Financing Documents in reliance on the
Issuer’s identity as a legal entity separate from the Collateral Manager and the other Affiliates of the Collateral Manager. From and after the Closing Date, the Issuer shall take such actions as shall be required in order that: 
 (i) the Issuer will maintain limited liability company records and books of account separate from those of each of its Affiliates and
stationery that are separate and distinct from those of each of its Affiliates; 
 (ii) the Issuer’s assets will be
maintained in a manner that facilitates their identification and segregation from those of any of its Affiliates; 
 (iii) the
Issuer will strictly observe limited liability company formalities in its dealings with the public and with each of its Affiliates, and funds or other assets of the Issuer will not be commingled with those of any of its Affiliates, except as may be
permitted by the Financing Documents. The Issuer will at all times, in its dealings with the public and with each of its Affiliates, hold itself out and conduct itself as a legal entity separate and distinct from each of its Affiliates. The Issuer
will not maintain joint bank accounts or other depository accounts to which any of its Affiliates (other than the Collateral Manager) has independent access; 
  

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 (iv) the Issuer will compensate each of its consultants and agents from the Issuer’s
own funds for services provided to the Issuer; 
 (v) the Issuer shall conduct its affairs strictly in accordance with its
certificate of formation and limited liability company operating agreement and observe all necessary, appropriate and customary limited liability company formalities, including, but not limited to, holding all regular and special members’ and
managers’ meetings appropriate to authorize all limited liability company action, keeping separate and accurate minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken or to be taken, and maintaining
accurate and separate books, records and accounts; 
 (vi) the Issuer shall take or refrain from taking, as applicable, each
of the activities specified in the “substantive consolidation” opinion of Winston & Strawn LLP, delivered on the Closing Date, upon which the conclusions expressed therein are based; and 
 (vii) the Issuer will not hold itself out to be responsible for the debts of any of its Affiliates. 
 Section 11. Term; Removal and Resignation. 
 (a) General. This Agreement shall commence as of the date first set forth above and shail continue in force and effect until the earlier of (i) the payment in full of the Notes and the termination of the
Note Purchase Agreement in accordance with its terms and (ii) the liquidation of the Collateral and the final distribution of the proceeds of such liquidation to the Investors and the Collateral Manager. The entity serving as Collateral Manager
hereunder may resign or be removed as provided below in this Section 11 with the effect specified in Section 12 hereof. 
 (b)
No Resignation of Collateral Manager. The Collateral Manager may not resign unless required by applicable law. 
 (c) Removal of
Collateral Manager for Cause. The Collateral Manager may be removed for cause by the Required Investors upon 30 days’ prior written notice to the Collateral Manager. For purposes of determining “cause” with respect to the removal
of the Collateral Manager pursuant to this Agreement, such term shall mean any one of the following events: 
 (i) the
Collateral Manager willfully violates any provision of this Agreement or the Note Purchase Agreement applicable to the Collateral Manager; 
 (ii) other than as provided for in clause (i) above, the Collateral Manager breaches any provision of this Agreement or any terms of the Note Purchase Agreement applicable to the Collateral Manager (it being
understood that failure to meet any Coverage Test or any Collateral Quality Test does not in and of itself constitute such a violation), except for any violation or breach that has not had, and would not reasonably be expected to have, a material
adverse effect on the Collateral or the Investors, and the Collateral Manager fails to cure such breach within 30 days of the Collateral Manager’s becoming aware of, or its receiving notice from the Investor Agent of, such breach, or, if such
breach is not capable of cure within 30 days, the Collateral Manager fails to cure such breach within the period in which a reasonably, diligent person could cure such breach (but in no event more than 60 days); 
 (iii) the Collateral Manager is wound up or dissolved or there is appointed over it or a substantial portion of its assets a receiver,
administrator, administrative receiver, 

  

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trustee or similar officer; or the Collateral Manager (A) admits in writing its inability to pay its debts as they become due and payable, or makes a
general assignment for the benefit of, or enters into any composition or arrangement with, its creditors generally, (B) applies for or consents (by admission of material allegations of a petition or otherwise) to the appointment of a receiver,
trustee, assignee, custodian, liquidator or sequestrator (or other similar official) of the Collateral Manager or of any substantial part of its properties or assets, or authorizes such an application or consent, or proceedings seeking such
appointment are commenced without such authorization, consent or application against the Collateral Manager and continue undismissed for 60 days, (C) authorizes or files a voluntary petition in bankruptcy, or applies for or consents (by admission of
material allegations of a petition or otherwise) to the application of any bankruptcy, reorganization, arrangement, readjustment of debt, insolvency or dissolution, or authorizes such application or consent, or proceedings to such end are instituted
against the Collateral Manager without such authorization, application or consent and are approved as properly instituted and remain undismissed for 60 days or result in adjudication of bankruptcy or insolvency, or (D) permits or suffers all or any
substantial part of its properties or assets to be sequestered or attached by court order and the order remains undismissed for 60 days; 
 (iv) the occurrence of any Event of Default under subsections (d) or (e) of Section 6.1 of the Note Purchase Agreement primarily resulting from a breach by the Collateral Manager of any of its
obligations under the Note Purchase Agreement or this Agreement; or 
 (v) the occurrence of an act by the Collateral Manager
which constitutes fraud or criminal activity in the performance of the Collateral Manager’s obligations under this Agreement, or the Collateral Manager being indicted, or any of its executive officers having responsibility over the management
of the Collateral being indicted and remaining employed by the Collateral Manager, for a criminal offense materially related to the Collateral Manager’s management of collateral or investments or the Collateral Manager’s investment
management activities. 
 (d) If any of the events specified in clauses (i) through (v) of Section 11(c) hereof shall
occur, the Collateral Manager shall give prompt written notice thereof to the Issuer, the Trustee and the Investor Agent upon the Collateral Manager’s becoming aware of the occurrence of such event. The Required Investors may (but shall not be
under any obligation to) waive any event described in any of clauses (i), (ii), (iv) and (v) of such Section 11(c) as a basis for termination of this Agreement and removal of the Collateral Manager under such Section 11(c).

 Section 12. Obligations of Resigning or Removed Collateral Manager; Effect of Termination, Resignation or Removal. 

(a) Appointment of Successor Collateral Manager. Any removal or resignation of the Collateral Manager while any Advances are outstanding will
be effective only upon (i) the appointment by the Issuer of a successor Collateral Manager that is an established institution (A) that has demonstrated an ability to perform professionally and competently duties similar to those required
of the Collateral Manager hereunder, (B) that is legally qualified and has the capacity to act as successor to the Collateral Manager under this Agreement in the assumption of all of the responsibilities, duties and obligations of the
Collateral Manager hereunder and (C) that has been approved by the Required Investors and (ii) written acceptance of appointment by such successor Collateral Manager having been delivered to the Issuer, the Trustee and the Investor Agent (upon
satisfaction of such conditions, an “Approved Replacement”). Following the resignation or removal of the Collateral Manager, the Issuer shall use all commercially reasonable efforts to appoint a successor Collateral Manager, and the
Issuer, the Trustee, the Investor Agent and the resigning or removed Collateral Manager shall take such action, consistent 

  

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with this Agreement and the terms of the Note Purchase Agreement applicable to the Collateral Manager, as shall be necessary to effectuate any such
succession. 
 In the event that the Collateral Manager has been terminated or has resigned and the Issuer shall have not appointed a
successor on or prior to the date that is 60 days following the date of the termination or resignation notice delivered in accordance with this Agreement, the Issuer or the resigning or removed collateral manager may petition any court of competent
jurisdiction in the United States of America for the appointment of a successor collateral manager (which meets the conditions set forth in the immediately preceding paragraph other than clause (i)(C)), which appointment shall not require the
consent of, nor be subject to the disapproval of, the Issuer or any Investor. 
 On the effectiveness of any resignation or removal of the
Collateral Manager, all authority and power of the resigning or removed Collateral Manager under this Agreement and the Note Purchase Agreement, whether with respect to the Collateral or otherwise, shall automatically and without further action by
any person or entity pass to and be vested in the successor Collateral Manager. 
 (b) Effect of Termination, Resignation or Removal.
From and after the effective date of the termination of this Agreement or the resignation or removal of the Collateral Manager hereunder, the Collateral Manager (or, in the case of resignation or removal, the resigning or removed Collateral
Manager) shall not be entitled to compensation for further services hereunder but shall be paid all compensation accrued to the effective date of the termination, resignation or removal of the Collateral Manager, as provided in Section 8
hereof, shall be entitled to receive any amounts, to which the Collateral Manager is or becomes entitled under Section 9 hereof (without regard to whether such amounts have been determined on the date of termination) and shall be entitled to
retain any Notes issued to it, (ii) shall remain liable to the extent set forth herein (but subject to Section 9 hereof) (A) for its acts or omissions hereunder arising prior to such termination, resignation or removal, (B) for
any expenses, losses, damages, liabilities, demands, charges and claims (including, without limitation, reasonable attorneys’ fees) in respect of or arising out of a breach of the representations and warranties made by the Collateral Manager in
Section 14(b) hereof and (C) from any failure of the Collateral Manager to comply with the provisions of this Agreement and (iii) shall reasonably cooperate in any proceeding arising in connection with this Agreement, the Note
Purchase Agreement or any of the Collateral (excluding any such proceeding in which claims are asserted against the Collateral Manager or any Affiliate of the Collateral Manager) upon receipt of appropriate indemnification and expense reimbursement.
Upon any such termination, resignation or removal, the Collateral Manager shall, as soon as practicable: 
 (i) deliver to the
Issuer all property and documents of the Investor Agent, the Issuer or the Trustee or otherwise relating to the Collateral then in the custody of the Collateral Manager, but shall be entitled to keep a copy of any such documents; and 
 (ii) deliver to the Investor Agent an accounting with respect to the books and records delivered to the Investor Agent or the successor
Collateral Manager. 
 Section 13. Delegation; Assignments. 
 (a) Delegation by Collateral Manager. The Collateral Manager may delegate to third parties (including its Affiliates), who it shall select with
reasonable care, and may employ third parties to execute any or all of the duties assigned to the Collateral Manager hereunder; provided, however, that (i) the Collateral Manager shall not be relieved of any of its duties hereunder as a
result of such delegation to or employment of third parties and (ii) the Collateral Manager shall be solely responsible for the fees and expenses payable to any such third party. Notwithstanding anything in this Section 13 to the contrary,
no delegation of duties by the Collateral Manager shall relieve it from any liability hereunder. 
  

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 (b) Assignment by Collateral Manager. Any assignment of this Agreement to any Person, in whole or
in part, by the Collateral Manager shall be deemed null and void unless (i) such assignment is consented to in writing by the Issuer and the Required Investors and (ii) the assignee has executed and delivered to the Issuer, the Trustee and
the Investor Agent a counterpart of this Agreement or another appropriate instrument accepting such assignment and naming such assignee as Collateral Manager. Upon the execution and delivery of such a counterpart or other instrument by the assignee,
the Collateral Manager shall be released from further obligations pursuant to this Agreement, except with respect to the Collateral Manager’s obligations arising under Section 9 hereof prior to such assignment and except with respect to
the Collateral Manager’s obligations under Sections 6 and 12 hereof. 
 (c) Assignment by lssuer. This Agreement shall not be
assigned by the Issuer without the prior written consent of the Collateral Manager and the Required Investors, except in the case of assignment by the Issuer to an entity that is a successor to the Issuer permitted under the Note Purchase Agreement,
in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Issuer is bound thereunder. In the event of any assignment by the Issuer, the Issuer shall use its best efforts to cause
its successor to execute and deliver to the Collateral Manager such documents as the Collateral Manager shall consider reasonably necessary to effect fully such assignment. 
 (d) Merger, Conversion or Consolidation of the Collateral Manager. Any corporation, partnership or limited liability company into which the
Collateral Manager may be merged or converted or with which it may be consolidated, or any corporation, partnership or limited liability company, resulting from any merger, conversion or consolidation to which the Collateral Manager shall be a
party, or any corporation, partnership or limited liability company succeeding to all or substantially all of the collateral management business of the Collateral Manager, shall be the successor to the Collateral Manager without any further action
by the Collateral Manager, the Investor Agent, the Investors, the Trustee or any other person or entity. 
 Section 14.
Representations and Warranties. 
 (a) The Issuer hereby makes in favor of the Collateral Manager each of the representations and
warranties made by the Issuer in Article IV of the Note Purchase Agreement. 
 (b) The Collateral Manager hereby represents and warrants to
the Issuer as follows: 
 (i) The Collateral Manager (w) is a corporation that has been duly incorporated and is validly
existing and in good standing under the laws of the State of Delaware, (x) has full power and authority to own its assets and to transact the business in which it is currently engaged and (y) is duly qualified and in good standing under
the laws of each jurisdiction where the Collateral Manager’s ownership or lease of property or the conduct of its business requires, or the performance of this Agreement would require, such qualification, except for those jurisdictions in which
the failure to be so qualified, authorized or licensed would not have a material adverse effect on the business, operations, assets or financial condition of the Collateral Manager or on the ability of the Collateral Manager to perform its
obligations hereunder, or on the validity or enforceability of this Agreement. 
 (ii) The Collateral Manager has the
necessary power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary action to authorize the execution, delivery and performance of this Agreement and the performance of all
of the Collateral Manager’s obligations hereunder. The Collateral Manager has duly executed this Agreement. No consent of any other person, including, without 

  

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limitation, creditors of the Collateral Manager, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration,
filing or declaration with, any governmental authority is required by the Collateral Manager in connection with the execution, delivery, validity or enforceability of this Agreement or the performance by the Collateral Manager of its obligations
hereunder. This Agreement has been, and each instrument and document required hereunder or under the terms of the Note Purchase Agreement to be executed by the Collateral Manager shall be, executed and delivered by a duly authorized officer of the
Collateral Manager, and this Agreement constitutes, and each instrument and document required hereunder or under the terms of the Note Purchase Agreement to be executed by the Collateral Manager when executed and delivered by the Collateral Manager
hereunder or under the terms of the Note Purchase Agreement shall constitute, the valid and legally binding obligations of the Collateral Manager enforceable against the Collateral Manager in accordance with their respective terms, subject to
(A) the effect of bankruptcy, insolvency or similar laws affecting generally the enforcement of creditors’ rights and (B) general equitable principles (whether enforceability of such principles is considered in a proceeding at law or
in equity). 
 (iii) The execution, delivery and performance of this Agreement and the terms of the Note Purchase Agreement
applicable to the Collateral Manager and the documents and instruments required to be executed by the Collateral Manager hereunder or under the terms of the Note Purchase Agreement (A) do not violate any provision of any law or regulation
binding on the Collateral Manager, any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Collateral Manager, any securities issued by the Collateral Manager or any mortgage, indenture, lease, contract
or other agreement, instrument or undertaking to which the Collateral Manager is a party or by which the Collateral Manager or any of its assets may be bound, the violation of which would have a material adverse effect on the business, operations,
assets or financial condition of the Collateral Manager or its ability to perform its obligations under this Agreement, (B) do not result in or require the creation or imposition of any lien on any of the Collateral Manager’s property,
assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking, the existence of which would have a material adverse effect on the business, operations, assets or
financial condition of the Collateral Manager or its ability to perform its obligations under this Agreement and (C) do not violate any provision of the Collateral Manager’s certificate of incorporation or bylaws. 
 (iv) There is no charge, investigation, action, suit or proceeding before or by any court pending or, to the best knowledge of the
Collateral Manager, threatened that, if determined adversely to the Collateral Manager, would have a material adverse effect upon the performance by the Collateral Manager of its duties under, or on the validity or enforceability of, this Agreement.

 (v) The Collateral Manager (A) is not in breach or violation of or in default under any contract or agreement to which
it is a party or by which it or any of its property may be bound, any applicable statute or any rule, regulation or order of any court, government agency or body having jurisdiction over the Collateral Manager or its properties, the breach or
violation of which or default under which would have a material adverse effect on the validity or enforceability of this Agreement or the performance by the Collateral Manager of its duties hereunder and (B) is not in violation of its
certificate of incorporation or bylaws. 
 (vi) No consent, approval, authorization or order of or declaration or filing with
any governmental instrumentality or court or other person is required for the performance by 

  

 11 

 
it of its duties hereunder and under the Note Purchase Agreement, except such as have been duly made or obtained. 
 (vii) The Collateral Manager is not required to register as an investment adviser under the Advisers Act. 
 Section 15. Bankruptcy Non-Petition and Limited Recourse. 
 (a) Notwithstanding any other provision of this Agreement, the Collateral Manager covenants and agrees that it shall not, prior to the date which is one year and one day (or, if longer, any applicable preference
period plus one day) after payment in full of the Obligations or, if any Offered Securities are issued by the Issuer, for at least one year and one day (or, if longer, any applicable preference period plus one day) after the latest maturing Offered
Security is paid in full, institute against, or join any other Person in instituting against, the Issuer, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or any similar proceeding under any federal or state
bankruptcy or similar law; provided that nothing in this provision shall preclude, or be deemed to stop, the Collateral Agent (a) from taking any action prior to the expiration of the aforementioned one year and one day period in (i) any case
or proceeding voluntarily filed or commenced by the Issuer or (ii) any involuntary insolvency proceeding filed or commenced against the Issuer by a Person other than the Collateral Manager, or (b) from commencing against the Issuer or the
Collateral any legal action which is not a bankruptcy, reorganization, arrangement, insolvency or a liquidation proceeding. The obligations of the Issuer to the Collateral Manager under this Agreement and the other Financing Documents are limited
recourse obligations payable solely from the Collateral and following realization of the Collateral and its application in accordance with the terms hereof, any outstanding obligations of the Issuer hereunder or under the other Financing Documents
shall be extinguished and shall not thereafter revive. In addition, no recourse shall be had for any amounts payable or any other obligations arising under this Agreement and the other Financing Documents against any officer, member, director,
employee, partner or security holder of the Issuer or any of its respective successors or assigns. 
 (b) The provisions of this
Section 15 shall survive the termination of this Agreement 
 Section 16. Notices. 
 Unless expressly provided otherwise herein, all notices, requests, demands and other communications required or permitted under this Agreement shall be
in writing (including, without limitation, by facsimile) and shall be deemed to have been duly given, made and received when delivered against receipt or upon actual receipt of registered or certified mail, postage prepaid, return receipt requested,
or, in the case of facsimile notice, when received in legible form, addressed as set forth below: 
 (a) If to the Issuer: 
 At the address provided for the Issuer in the Note Purchase Agreement 
 (b) If to the Collateral Manager: 
 NewStar
Financial, Inc. 
 500 Boylston Street, Suite 1600 
 Boston, Massachusetts 02116 
 Telephone: (617) 848-2515 
 Fax: (617) 259-4696 
 Attention: David K.
Roberts 
  

 12 

 (c) If to the Investor Agent, the Investors or the Trustee: 
 At the address provided for such Person in the Note Purchase Agreement 
 Any party may alter the address or telecopy number to which communications or copies are to be sent by giving notice of such change of address in
conformity with the provisions of this Section 16 for the giving of notice. 
 Section 17. Binding Nature of Agreement; Successors
and Assigns; Benefits of Agreement. 
 The Issuer and the Collateral Manager agree that the Investors, the Trustee and the Investor Agent
are intended third party beneficiaries of this Agreement (subject to the rights and defenses of the Collateral Manager hereunder). The Collateral Manager agrees that its obligations hereunder shall be enforceable, at the instance of the Issuer, on
behalf of the Issuer by the Trustee under the Financing  ̄ Documents, or by the Investor Agent or the Required Investors, on behalf of themselves, as provided in the Note Purchase Agreement (subject to the rights and defenses of the Collateral
Manager hereunder). This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and permitted assigns as provided herein. 
 Section 18. Entire Agreement; Amendments. 
 This Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, inducements
and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the
terms hereof. This Agreement may not be modified or amended other than by an agreement in writing executed by the parties hereto with the consent of the Investor Agent. 
 Section 19. Governing Law. 
 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK (INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 
 Section 20. Indulgences Not Waivers. 
 Neither the failure nor any delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power
or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right,
remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. 
  

 13 

 Section 21. Titles Not to Affect Interpretation. 
 The titles of Sections and subsections of this Agreement are for convenience only. They neither form a part of this Agreement nor are to be used in the
construction or interpretation hereof. 
 Section 22. Execution in Counterparts. 
 This Agreement may be executed in any number of counterparts by facsimile or other written form of communication, each of which shall be deemed to be an
original as against any party the signature of which appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken together,
shall bear the signatures of all of the parties reflected hereon as the signatories. 
 Section 23. Provisions Separable.

 To the fullest extent permitted by law, in case any provision in this Agreement shall be invalid, illegal or unenforceable as written,
such provision shall be construed in the manner most closely resembling the apparent intent of the parties with respect to such provision so as to be valid, legal and enforceable; provided, however, that, if there is no basis for such a
construction, to the fullest extent permitted by law such provision shall be ineffective only to the extent of such invalidity, illegality or unenforceability and, unless the ineffectiveness of such provision destroys the basis of the bargain for
one of the parties to this Agreement, the validity, legality and enforceability of the remaining provisions hereof or thereof shall not in any way be affected or impaired thereby. 
 Section 24. Number and Gender. 
 Words used herein, regardless of the number and gender specifically used, shall be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires.

 Section 25. Collateral Assignment. 
 The Collateral Manager hereby acknowledges and consents to the collateral assignment by the Issuer to the Trustee pursuant to the Security Agreement of all of the Issuer’s right, title and interest in and to this
Agreement and agrees that all of the representations, covenants and agreements made by the Collateral Manager herein are also for the benefit of the Trustee, on behalf of the Investor Agent, the Swingline Investor and the Investors. 
 [signature page follows] 
  

 14 

 INDEX 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. 
  

					
	NEWSTAR FINANCIAL, INC.
		
	By:	 	/s/ John J. Frishkopf
		 	Name:	 	John J. Frishkopf
		 	Title:	 	Managing Director

  

					
	NEWSTAR STRUCTURED FINANCE OPPORTUNITIES, LLC
		
	By:	 	/s/ John J. Frishkopf
		 	Name:	 	John J. Frishkopf
		 	Title:	 	Managing Director

  

 Signature Page to 
 Collateral Management AgreementSecurity Agreement

 Exhibit 10.11.4 
 INDEX 
 SECURITY AGREEMENT 
 dated as of March 21, 2006 
 between 
 NEWSTAR STRUCTURED FINANCE OPPORTUNITIES, LLC 
 as Issuer 
 and 
 U.S.
BANK NATIONAL ASSOCIATION 
 as Trustee and as Custodian 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 ARTICLE I DEFINITIONS
	  	1
		
	 ARTICLE II GRANT OF SECURITY INTEREST
	  	3
		
	 Section 2.1         Grant by the Issuer
	  	3
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES
	  	3
		
	 Section 3.1         Representations of the Issuer
	  	3
	 Section 3.2         Representations of the Custodian
	  	4
		
	 ARTICLE IV COVENANTS
	  	4
		
	 Section 4.1         Title Covenants
	  	4
	 Section 4.2         Administrative Agent or any Lender May Perform
	  	4
	 Section 4.3         Perfection, etc.
	  	5
	 Section 4.4         No Other Financing Statements
	  	5
	 Section 4.5         Prior Parties; Care of Collateral
	  	5
	 Section 4.6         Continuing Liability of the Credit Parties
	  	5
	 Section 4.7         Limitation on Certain Changes
	  	5
	 Section 4.8         Further Assurances
	  	6
		
	 ARTICLE V REMEDIES
	  	6
		
	 Section 5.1         Remedies
	  	6
	 Section 5.2         Application of Proceeds
	  	7
	 Section 5.3         Power of Attorney
	  	7
		
	 ARTICLE VI COLLATERAL ACCOUNT AND COLLATERAL
	  	8
		
	 Section 6.1         Collection of Money
	  	8
	 Section 6.2         Collateral Account
	  	8
	 Section 6.3         Acquisition of Collateral Debt Securities and Eligible
Investments
	  	10
	 Section 6.4         Release of Security Interest in Sold Collateral Debt Securities and Eligible
Investments
	  	11
	 Section 6.5         Method of Collateral Transfer
	  	11
	 Section 6.6         Termination
	  	12
		
	 ARTICLE VII MISCELLANEOUS
	  	12
		
	 Section 7.1         Notices
	  	12
	 Section 7.2         No Waiver
	  	12
	 Section 7.3         Amendments, Etc.
	  	12
	 Section 7.4         Successors and Assigns
	  	12
	 Section 7.5         Counterparts
	  	13
	 SECTION 7.6     GOVERNING LAW
	  	13
	 Section 7.7         Waiver of Jury Trial
	  	13
	 Section 7.8         Captions
	  	13
	 Section 7.9         Agents and Attorneys-in-Fact
	  	13
	 Section 7.10       Severability
	  	13
	 Section 7.11       Bankruptcy Non-Petition and Limited Recourse
	  	13

  

 i 

 THIS SECURITY AGREEMENT dated as of March 21, 2006 is entered into by and between NEWSTAR STRUCTURED
FINANCE OPPORTUNITIES, LLC, a Delaware limited liability company (the “Issuer”) and U.S. Bank National Association, acting in its capacities as Trustee (in such capacity, together with its successors and assigns, the
“Trustee”) and as Custodian (in such capacity, together with its successors and assigns, the “Custodian”). 
 The Issuer, NewStar Financial, Inc., certain investors, the Trustee and IXIS Financial Products Inc., as Investor Agent under the Note Purchase Agreement referred to below (in such capacity, the “Investor Agent”) are
parties to a Note Purchase Agreement dated as of March 2 I, 2006 (the “Note Purchase Agreement”), providing, subject to the terms and conditions thereof, for extensions of credit to be made by said investors to the Issuer in an
aggregate principal amount not exceeding $200,000,000 at any one time outstanding. 
 To induce said investors to enter into the Note
Purchase Agreement and to extend credit thereunder, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Issuer has agreed to pledge and grant a security interest in the Collateral (as
hereinafter defined) as security for the Obligations (as defined in the Note Purchase Agreement). Accordingly, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Terms defined in the Note Purchase Agreement are used herein as defined therein. The principles of construction and rules of interpretation set forth in Section 1.5 of the Note Purchase Agreement shall apply, mutatis
mutandis, to this Agreement, with each reference to “this Agreement” in said Section 1.5 being a reference to this Agreement. In addition, as used herein, the following terms have the following respective meanings: 

“Certificated Security” has the meaning specified in Section 8-102(a)(4) of the UCC. 
 “Clearing Corporation” has the meaning specified in Section 8-102(a)(5) of the UCC. 
 “Clearing Corporation Security” means a “security” (as defined in Section 8-102(a)(15) of the UCC) that is a Financial
Asset that is registered in the name of a Clearing Corporation or the nominee of such Clearing Corporation and, if a Certificated Security, is held in the custody of such Clearing Corporation or a custodian on its behalf. 
 “Clearstream” means Clearstream Banking, socirt6 anonyme, a corporation organized under the laws of the Duchy of Luxembourg. 

“Clearstream Security” means a “security” (as defined in Section 8-102(a)(15) of the UCC) that (a) is a debt or
equity security and (b) is capable of being transferred to the account of a Custodian at Clearstream pursuant to Section 6.5, whether or not such transfer has occurred. 
 “Collateral” has the meaning specified in Section 2.1. 

 “Collateral Account” means the account, referenced as such, established pursuant to
Section 6.2(a). 
 “Collections” means, with respect to any Collateral owned by the Issuer, all principal payments,
interest payments, fees and other payments received by the Issuer with respect thereto and all other amounts paid with respect to such Collateral, including dividends of any type, distributions with respect thereto and any proceeds of collateral
for, or any guaranty of, such Collateral or the relevant Obligor’s obligation to make payments with respect thereto. 
 “Custodian” has the meaning specified in Section 6.4(c). 
 “Euroclear” means Euroclear Bank
S.A./N.V., as operator of the Euroclear System. 
 “Euroclear Security” means a “security” (as defined in
Section 8-102(a)(15) of the UCC) that (a) is a debt or equity security and (b) is capable of being transferred to the account of a Custodian at Euroclear pursuant to Section 6.5, whether or not such transfer has occurred.

 “Financial Asset” has the meaning specified in Section 8-102(a)(9) of the UCC. 
 “Instrument” has the meaning specified in Section 9-102(a)(47) of the UCC. 
 “Investor Agent” has the meaning specified in the second paragraph of this Agreement. 
 “Issuer” has the meaning specified in the first paragraph of this Agreement. 
 “Issuer Order” means a written order or request dated and signed in the name of the Issuer by an Authorized Officer of the Issuer or (if
herein provided) of the Collateral Manager. 
 “Money” has the meaning specified in Section 1-201 (24) of the UCC.

 “Note Purchase Agreement” has the meaning specified in the second paragraph of this Agreement. 
 “Permitted Liens” means (a) materialmen’s, warehousemen’s, mechanics and other Liens arising by operation of law in the
ordinary course of business for sums not due or sums that are being contested in good faith and against which adequate reserves are being maintained, (b) Liens for taxes if such taxes shall not at the time be due and payable or the validity or
amount thereof is currently being contested by an appropriate Person in good faith by appropriate proceedings and against which adequate reserves are being maintained, and (c) Liens in favor of the Trustee and the Custodian. 
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State of Delaware or New York (whichever governs
(a) the creation of the related security interest, (b) the law governing the perfection, the effect of perfection or nonperfection and the priority of a security interest in the related Collateral and (c) the perfection, the effect of
perfection or nonperfection and the priority of a security interest in the related Collateral, as the case may be). 
  

 2 

 ARTICLE II 
 GRANT OF SECURITY INTEREST 
 Section 2.1 Grant by the Issuer. As collateral security for the
prompt payment in full and performance when due (whether at stated maturity, by acceleration, by liquidation or otherwise) of the Obligations, the Issuer hereby pledges to the Trustee, for the benefit of the Investor Agent, the Trustee, the
Swingline Investor and the Investors, and grants to the Trustee, for the benefit of the Investor Agent, the Trustee, the Swingline Investor and the Investors, a continuing security interest in, lien on, and right of set-off against, all of its
right, title and interest in, to and under all accounts, payment intangibles, general intangibles, chattel paper, electronic chattel paper, instruments, deposit accounts, letter-of-credit rights, investment property and any and all other property of
any type or nature owned by it, including the Collateral Account, this Agreement, each other Financing Document (including all of the rights and remedies of the Issuer hereunder and thereunder), each Collateral Debt Security owned by it, all
Collections with respect thereto, all Eligible Investments, all Cash and all Underlying Instruments, whether now owned or hereafter acquired and whether now existing or hereafter coming into existence (collectively, the
“Collateral”). 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 Section 3.1 Representations of the Issuer. The Issuer
represents and warrants to the Trustee, the Swingline Investor and each Investor that: 
 (a) Schedule of Collateral Debt
Securities. Annex 1 hereto contains a complete list of each Collateral Debt Securities owned by the Issuer on the date hereof, and the information set forth on Annex 1 hereto with respect to each such Collateral Debt Security on the date hereof
is true, accurate and complete. 
 (b) Ownership of Collateral. Immediately before giving effect to each transfer of
Collateral Debt Securities, Eligible Investments and other Collateral by the Issuer to the Custodian in accordance with Section 6.5, the Issuer will have good and marketable title to such Collateral Debt Securities, Eligible Investments and
other Collateral, the Issuer will be the sole beneficial owner of such Collateral Debt Securities, Eligible Investments and other Collateral, and the Issuer will have the right to receive all Collections on such Collateral Debt Securities, Eligible
Investments and other Collateral, in each case free and clear of all liens, security interests and adverse claims other than the pledge, security interest, lien and right of set-off granted pursuant hereto and Permitted Liens. 
 (c) Security Interest. The Issuer has full right, and has received all consents and approvals required by the related Underlying
Instruments, to grant the pledge, security interest, lien and right of set-off in its rights in the Collateral to the Trustee. Upon each transfer of Collateral by the Issuer in the manner specified in Section 6.5, and after the other actions
described in Section 6.5 have been taken by the appropriate parties, the Trustee will have a perfected pledge of and security interest in such Collateral and all proceeds thereof (subject to Section 9-315 of the UCC), which security
interest will be prior to all other interests in such Collateral (in the case of proceeds, subject to Section 9-315 of the UCC) other than Permitted Liens. No filings other than those described or referred to in Section 6.5 or any other
action other 

  

 3 

 
than those described in Section 6.5 will be necessary to perfect such security interest under the UCC. 
 Section 3.2 Representations of the Custodian. The Custodian represents and warrants that: 
 (a) it is a “bank” within the definition given in Section 26(a)(1) of the Investment Company Act; 
 (b) it or its parent has a combined capital and surplus of at least $500,000,000 as set forth in its most recent annual published report
of condition; 
 (c) it is not an Affiliate of the Issuer; 
 (d) it, in its representative capacity, is not providing credit or credit enhancement to the Issuer. 
 ARTICLE IV 
 COVENANTS 
 The Issuer agrees that, until the payment and satisfaction in full of the Obligations (other than contingent indemnification obligations, as to which no
claim giving rise thereto has been asserted) and the expiration or termination of the Commitments: 
 Section 4.1 Title
Covenants. At no time shall the Issuer: 
 (a) create, permit or suffer to exist any lien or security interest in the
Collateral other than the pledge, security interest, lien and right of set-off granted pursuant hereto or any lien granted to a Clearing Corporation pursuant to its rules or any Permitted Lien; or 
 (b) except as otherwise expressly permitted herein or in the Note Purchase Agreement, sell, transfer, assign, deliver or otherwise dispose
of any Collateral or any interest therein. 
 Section 4.2 Trustee, Swingline Investor or any Investor May Perform. If the Issuer
fails to perform any agreement to be performed by it contained herein, the Trustee (or the Investor Agent, the Swingline Investor or any Investor on behalf of the Trustee) may itself give, make, execute, deliver, file and/or record any financing
statement, notice, instrument, document, agreement or other papers, and take such acts, as the Trustee, the Investor Agent, the Swingline Investor or such Investor may reasonably determine to be necessary or desirable from time to time to create and
perfect, and establish, preserve or otherwise protect the priority of, the pledge, security interest, lien and right of set-off of the Trustee, for the benefit of the Investor Agent, the Swingline Investor and the Investors, in the Collateral and
otherwise perform, or cause performance of, any other such actions as the Trustee (or the Investor Agent, the Swingline Investor or such Investor on behalf of the Trustee) shall determine is necessary or desirable, and the reasonable expenses of the
Trustee, the Investor Agent, the Swingline Investor and the Investors incurred in connection therewith shall be payable by the Issuer and shall be part of the Obligations. 
  

 4 

 Section 4.3 Perfection, etc. The Issuer shall: 
 (a) give, make, execute, deliver, file and/or record any financing statement, notice, instrument, document, agreement or other papers that
may be necessary or desirable (in the reasonable judgment and at the request of the Trustee) to create and perfect, and establish, preserve or otherwise protect the priority of, the pledge, security interest, lien and right of set-off granted by it
pursuant to Article II or to enable the Trustee to exercise and enforce its rights hereunder with respect to such pledge, security interest, lien and right of set-off; 
 (b) keep full and accurate books and records relating to the Collateral; 
 (c) permit representatives of the Trustee, upon reasonable notice, at any time during normal business hours, to inspect and make abstracts
from its books and records pertaining to the Collateral to the extent permitted by the Note Purchase Agreement and, while a Default has occurred and is continuing, forward copies of any notices or communications received by it with respect to the
Collateral to the Trustee, all in such manner as the Trustee may reasonably require; and 
 (d) direct each Obligor in respect
of any Collateral to make any payments due or to become due in respect of such Collateral directly to the Concentration Account or the Collateral Account. 
 Section 4.4 No Other Financing Statements. The Issuer shall not file, or authorize or permit to be filed or to be on file, in any jurisdiction, any financing statement or like instrument with respect to
the Collateral in which the Trustee (or the bank acting as Trustee) is not named as the sole secured party. 
 Section 4.5 Prior
Parties; Care of Collateral. The Trustee shall not be required to take steps necessary to preserve any rights against prior parties with respect to any of the Collateral. 
 Section 4.6 Continuing Liability of the Issuer. Anything herein to the contrary notwithstanding, the Issuer shall remain liable under each
Underlying Instrument, interest and obligation included in the Collateral to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with and pursuant to the terms and provisions
thereof, and shall do nothing to impair the security interest of the Trustee in any Collateral. The Trustee shall not have any obligation or liability under any such Underlying Instrument, interest or obligation by reason of or arising out of this
Agreement or the receipt by the Trustee of any payment relating to any such Underlying Instrument, interest or obligation pursuant hereto, and the Trustee shall not be required or obligated in any manner to perform or fulfill any of the obligations
of the Issuer thereunder or pursuant thereto or to make any payment or to make any inquiry as to the nature or the sufficiency of any payment received by it or the sufficiency of any performance by any party under any such Underlying Instrument,
interest or obligation or to present or file any claim or to take any action to collect or enforce any . performance or the payment of any amount thereunder to which it may be entitled at any time. 
 Section 4.7 Limitation on Certain Changes. The Issuer shall not, without at least 30 days prior written notice to the Trustee,
(a) change its location (within the meaning of Section 9-307 of the UCC) or (b) change its limited liability company name from the name shown on the signature pages hereto. 
  

 5 

 Section 4.8 Further Assurances. The Issuer agrees that, from time to time upon the written
request of the Trustee, it shall execute and deliver such further documents and do such other acts and things as the Trustee may reasonably request in order fully to effect the purposes of this Agreement. 
 ARTICLE V 
 REMEDIES 
 Section 5.1 Remedies. At any time that an Event of Default shall have occurred and be continuing and any Obligations are then due and
payable, but subject to the Collateral Manager’s rights under Section 6.2(d) of the Note Purchase Agreement: 
 (a)
the Issuer shall, at the request of the Trustee, assemble any Collateral not held pursuant to, or in accordance with, the Account Control Agreement at such place or places, reasonably convenient to both the Trustee and the Issuer, designated in such
request; 
 (b) the Trustee may make any reasonable compromise or settlement deemed desirable with respect to any of the
Collateral and may extend the time of payment, arrange for payment in installments or otherwise modify the terms of any of the Collateral; 
 (c) the Trustee shall have all of the rights and remedies with respect to the Collateral of a secured party under the Uniform Commercial Code (whether or not the Uniform Commercial Code is in effect in the
jurisdiction where the rights and remedies are asserted) and such additional rights and remedies to which a secured party is entitled under the laws in effect in any jurisdiction where any rights and remedies hereunder may be asserted, including the
right, to the maximum extent permitted by law, to exercise all voting, consensual and other powers of ownership pertaining to the Collateral as if the Trustee were the sole and absolute owner thereof (and the Issuer agrees to take all such actions
as may be appropriate to give effect to such right); 
 (d) the Trustee in its discretion may, in its name or in the name of
the Issuer or otherwise, demand, sue for, collect or receive any money or property at any time payable or receivable on account of or in exchange for any of the Collateral but shall be under no obligation to do so; 
 (e) the Trustee may set-off any amounts payable by the Issuer with respect to any Obligations against any Collateral in the form of Cash
(or any obligation of any Investor or the Swingline Investor to make a payment to the Issuer, whether hereunder or under any other agreement); and 
 (f) the Trustee may, as of and after the date that is 90 days after the occurrence of an Event of Default, or immediately in the case of an Event of Default described in Section 6.1 (h) of the Note Purchase
Agreement, upon ten Business Days’ prior written notice to the Issuer of the time and place (which, for the avoidance of doubt may be provided during the 90 day period specified above), with respect to the Collateral or any part thereof which
shall then be or shall thereafter come into the possession, custody or control of the Trustee or any of its agents, sell, assign or otherwise dispose of all or any part of such Collateral, in a commercially reasonable manner, at such place or places
as the Trustee deems best, and for Cash or for credit or for future 

  

 6 

 
delivery (without thereby assuming any credit risk), at public or private sale, without demand of performance or notice of intention to effect any such
disposition or of the time or place thereof (except such notice as is required above or by applicable statute and cannot be waived), and the Trustee, the Investor Agent, the Swingline Investor, any Investor or anyone else may be the purchaser,
lessee, assignee or recipient of any or all of the Collateral so disposed of at any public sale (or, to the extent permitted by law, at any private sale) and thereafter hold the same absolutely, free from any claim or right of whatsoever kind,
including any right or equity of redemption (statutory or otherwise) of the Issuer, any such demand, notice, claim and right or equity being hereby expressly waived and released to the extent permitted by law. The Trustee may, without notice or
publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the sale may be so adjourned.

 The Trustee shall incur no liability as a result Of the sale of the Collateral, or any part thereof, at any private sale pursuant to this
Section 5.1 conducted in a commercially reasonable manner. The Issuer hereby waives any claims against the Trustee arising by reason of the fact that the price at which the Collateral may have been sold at any such private sale conducted in a
commercially reasonable manner was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if the Trustee accepts the first offer received and does not offer the Collateral
to more than one offeree. 
 The Issuer recognizes that, by reason of certain prohibitions and restrictions contained in the Securities Act,
in applicable state securities laws and in the Underlying Instruments themselves, the Trustee may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasers to those who will agree, among other things, to
acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof or to limit purchasers to Persons that meet eligibility criteria specified in such Underlying Instruments. The Issuer acknowledges
that any such private sales may be at prices and on terms less favorable to the Trustee than those obtainable through a public sale without such restrictions and, notwithstanding such circumstances, agrees that any such private sale shall be deemed
to have been made in a commercially reasonable manner and that the Trustee shall have no obligation to engage in public sales and no obligation to delay the sale of any Collateral for the period of time necessary to permit the issuer thereof to
register it for public sale. 
 The proceeds of each collection, sale or other disposition under this Section 5.1 shall be applied in
accordance with Section 5.2. 
 Section 5.2 Application of Proceeds. The proceeds of any collection, sale or other
realization of all or any part of the Collateral pursuant hereto (including any amounts on deposit in, or otherwise standing to the credit of, the Collateral Account) shall be applied by the Custodian (at the Trustee’s direction) as set forth
in Section 2.8(0 of the Note Purchase Agreement. 
 Section 5.3 Power of Attorney. The Trustee is hereby appointed the
attorney-in-fact of the Issuer for the purpose, during any period when this Agreement is in effect and an Event of Default shall have occurred and be continuing, of taking any action and executing any instruments which the Trustee may reasonably
deem necessary or advisable to accomplish the purposes of this Agreement (including with respect to the exercise of any remedies hereunder against the Issuer), which appointment as attorney-in-fact is irrevocable and coupled with an interest;
provided, however, that the grant of such 

  

 7 

 
power shall not be construed to impose upon the Trustee any responsibility for performance of the Issuer’s obligations. 
 ARTICLE VI 
 COLLATERAL ACCOUNT AND COLLATERAL

 Section 6.1 Collection of Money. 
 (a) Except as otherwise expressly provided herein, while an Event of Default has occurred and is continuing, the Trustee may demand payment or delivery of, and shall receive and collect, directly and without
intervention or assistance of any fiscal agent or other intermediary, all Money and other property payable to or receivable by the Trustee pursuant to this Agreement and the other Financing Documents, including all payments or any other amounts due
on the Collateral Debt Securities and Eligible Investments, in accordance with the terms and conditions of such Collateral Debt Securities and Eligible Investments. 
 (b) The Issuer shall provide the Trustee with a copy of each agreement under which the Issuer sells by assignment all or any part of a Collateral Debt Security owned by the Issuer. Upon receipt of written
certification by the Issuer or the Collateral Manager (which may take the form of standing instructions with respect to a specified portion of all payments received on designated Collateral Debt Securities) to the effect that specified amounts
received by the Trustee (or the Custodian on the Trustee’s behalf) from an Obligor do not constitute Collections subject to this Agreement but are required by the terms of an assignment agreement to be paid by the Issuer to the assignee of the
Issuer or otherwise, the Trustee shall compare such certification or instructions with the terms of the related assignment agreement and if they are substantially consistent will direct the Custodian to disburse such amounts to the Person entitled
thereto, as directed in such certificate. 
 Section 6.2 Collateral Account. 
 (a) The Custodian has specified in the Account Control Agreement that it has established a single, segregated trust account which shall be designated as
the Collateral Account, which may include any sub-accounts thereof established by the Custodian for administration purposes and which shall be held in the name of the Trustee, for the benefit of the Investor Agent, the Swingline Investor and the
Investors, and over which the Trustee shall have exclusive control and the sole right of withdrawal subject to disbursement of funds thereon at the direction of the Collateral Manager in accordance with the Note Purchase Agreement and this
Agreement. Any reference in this Agreement or the other Financing Documents to the “Collateral Account” shall, unless otherwise expressly provided, include a reference to any sub-account of the Collateral Account. To the extent that an
Obligor does not make the applicable payment directly to the Collateral Account, the Issuer or the Trustee, as the case may be, shall from time to time deposit into the Collateral Account promptly upon its receipt thereof (i) all proceeds
received from the disposition of any Collateral by the Issuer, (ii) all Collections with respect to the Collateral and (iii) all other funds received by the Trustee in respect of the Collateral (unless, in each case, simultaneously
reinvested in Collateral Debt Securities, subject to Article VII of the Note Purchase Agreement, or used to prepay the Advances in accordance with Section 2.8 of the Note Purchase Agreement). The Issuer shall cause to be deposited into the
Collateral Account each contribution of equity capital in the form of Cash. All Monies deposited from time to time in the Collateral Account pursuant to this Agreement shall be 

  

 8 

 
held by the Custodian on behalf of the Trustee as part of the Collateral and shall be applied for the purposes provided herein and in the Note Purchase
Agreement. 
 (b) By Issuer Order executed by an Authorized Officer of the Collateral Manager (which may be in the form of standing
instructions), the Issuer shall at all times direct the Custodian in writing (with a copy to the Trustee) to invest all funds on deposit in the Collateral Account as so directed in Eligible Investments having stated maturities no later than the
Business Day immediately preceding the next Payment Date. The Trustee, within one Business Day after having knowledge of any non-Cash distribution or other proceeds in respect of the Collateral, shall so notify the Issuer, and the Issuer shall,
within 45 days of receipt of such notice from the Trustee, use commercially reasonable efforts to sell such distribution or other proceeds for Cash (at a price equal to the fair market value thereof as reasonably determined by the Collateral Manager
and, to the extent applicable, in accordance with the Note Purchase Agreement) to any Person (including an Affiliate of the Issuer) and deposit the proceeds thereof in the Collateral Account for investment pursuant to this Section 6.2;
provided that the Issuer need not sell such distributions or other proceeds if the Collateral Manager delivers a certificate of an Authorized Officer to the Trustee certifying that such distributions or other proceeds constitute Collateral
Debt Securities or Eligible Investments or are otherwise permitted by the Note Purchase Agreement to be held by the Issuer. 
 (c) If, prior
to the occurrence of an Event of Default, the Issuer (or the Collateral Manager on its behalf) shall not have given any investment directions pursuant to Section 6.2(b), the Trustee shall seek instructions from the Collateral Manager within one
Business Day after transfer of funds to the Collateral Account. If the Trustee does not thereupon receive written instructions from the Collateral Manager within five Business Days after transfer of such funds to the Collateral Account, it shall
direct the Custodian to invest and reinvest the funds held in such Collateral Account, as fully as practicable, but only in one or more Eligible Investments of the type described in clause (b) of the definition thereof maturing no later than
the Business Day immediately preceding the next Payment Date. If, after the occurrence of an Event of Default, the Collateral Manager shall not have given investment directions to the Trustee pursuant to Section 6.2(b) for three consecutive
days, the Trustee shall direct the Custodian to invest and reinvest such Monies as fully as practicable in Eligible Investments of the type described in clause (b) of the definition thereof maturing not later than the earlier of (i) 30
days after the date of such investment or (ii) the Business Day immediately preceding the next Payment Date. All interest and other income from such investments shall be deposited in the Collateral Account, any gain realized from such
investments shall be credited to the Collateral Account, and any loss resulting from such investments shall be charged to the Collateral Account. The Trustee shall not in any way be held liable by reason of any insufficiency of the Collateral
Account resulting from any loss relating to any such investment. 
 (d) On each Payment Date, the Issuer (or the Collateral Manager on its
behalf) shall by Issuer Order executed by an Authorized Officer of the Collateral Manager, delivered to the Trustee and the Custodian, direct the Custodian to withdraw funds on deposit in the Collateral Account representing Interest Proceeds and
apply such amounts as provided in Section 2.8(f)(i) of the Note Purchase Agreement. On each Payment Date, the Issuer (or the Collateral Manager on its behalf) shall by Issuer Order executed by an Authorized Officer of the Collateral Manager,
delivered to the Trustee and the Custodian, direct the Custodian to withdraw funds on deposit in the Collateral Account representing Principal Proceeds and apply such amounts as provided in Section 2.8(f)(ii) of the Note Purchase Agreement.

  

 9 

 (e) During the Reinvestment Period (and only during the Reinvestment Period) and provided no Event of
Default shall have occurred and be continuing, the Issuer (or the Collateral Manager on its behalf) may by Issuer Order executed by an Authorized Officer of the Collateral Manager, delivered to the Trustee and the Custodian, direct the Custodian to
withdraw funds on deposit in the Collateral Account representing Principal Proceeds (and, to the extent permitted by Sections 2.8(f)(i) and 5.8(b) of the Note Purchase Agreement, excess Interest Proceeds) and the proceeds of all Advances and
Swingline Advances and invest such funds in Collateral Debt Securities as permitted under and in accordance with the requirements of the Note Purchase Agreement and such Issuer Order. 
 (f) The Issuer (or the Collateral Manager on its behalf) may by Issuer Order executed by an Authorized Officer of the Collateral Manager, delivered to
the Trustee and the Custodian, direct the Custodian to withdraw funds on deposit in the Collateral Account representing Principal Proceeds (and, to the extent permitted by Section 2.8(f)(i) of the Note Purchase Agreement, excess Interest
Proceeds) and apply such funds to the payment or prepayment of the Advances or as otherwise permitted or required by the Note Purchase Agreement and such Issuer Order. 
 (g) The Trustee shall at all times be party to the Account Control Agreement which shall provide, inter alia, that the establishment and maintenance of the Collateral Account shall be governed by the law of the State
of New York and that the Custodian agrees to treat all assets credited to the Collateral Account as Financial Assets for purposes of the UCC. Any and all assets or securities at any time on deposit in, or otherwise to the credit of, the Collateral
Account shall be held for the benefit of the Trustee. Except in connection with a liquidation pursuant to Article V, the only permitted withdrawal of assets or securities (other than Cash) from the Collateral Account or in, or otherwise to the
credit of, the Collateral Account shall be as directed, upon Issuer Order, in accordance with the provisions of this Section 6.2, Section 6.3 and Section 6.4. 
 (h) The Trustee agrees to give the Issuer immediate notice if the Collateral Account or any assets or securities on deposit therein, or otherwise to the
credit thereof, shall become subject to any writ, order, judgment, warrant of attachment, execution or similar process. 
 (i) The Trustee
agrees with the Issuer that the Issuer shall be entitled to exercise the rights under Section 4 of the Account Control Agreement so long as no Event of Default shall have occurred and be continuing. The Trustee agrees not to deliver notice to
the Custodian that an Event of Default has occurred and is continuing unless an Event of Default has in fact occurred and is continuing. 
 Section 6.3 Origination or Acquisition of Collateral Debt Securities and Eligible Investments. Each time that the Issuer originates or acquires any Collateral Debt Security or Eligible Investment or other Collateral, the Issuer
shall, if such Collateral Debt Security or Eligible Investment or other Collateral has not already been transferred to the Collateral Account, transfer or cause the transfer of such Collateral Debt Security or Eligible Investment and other
Collateral to the Custodian to be held in accordance with the terms of this Agreement and the Account Control Agreement. The security interest of the Trustee in the funds or other property utilized in connection with such acquisition shall,
immediately and without further action on the part of the Trustee, be released from the pledge, security interest, lien and right of set-off granted pursuant hereto. The pledge, security interest, lien and right of set-off of the Trustee, for the
benefit of Investor Agent, the Trustee, the Swingline Investor and the Investors, shall nevertheless come into existence and continue in the Collateral Debt Securities and Eligible Investments and other Collateral so originated or acquired,
including all rights of the Issuer in 

  

 10 

 
and to any Underlying Instruments and Collections with respect to such Collateral Debt Securities and Eligible Investments and other Collateral. 

Section 6.4 Release of Security Interest in Sold Collateral Debt Securities and Eligible Investments. 
 (a) Upon any sale or other disposition by the Issuer of a Collateral Debt Security or Eligible Investment or other Collateral (or portion thereof) in
accordance with the terms of this Agreement and the Note Purchase Agreement, the pledge, security interest, lien and right of set-off of the Trustee in such Collateral Debt Security or Eligible Investment or other Collateral (or the portion thereof
which has been sold or otherwise disposed of), and in all Collections and rights under Underlying Instruments with respect to such Collateral Debt Security or Eligible Investment or other Collateral (but not in the proceeds of such sale or other
disposition), shall, immediately upon the sale or other disposition of such Collateral Debt Security or Eligible Investment or other Collateral (or such portion), and without any further action on the part of the Trustee, be released except to the
extent of the interest, if any, in such Collateral Debt Security or Eligible Investment or other Collateral which is then retained by the Issuer or which thereafter reverts to the Issuer for any reason. 
 (b) If no Event of Default has occurred and is continuing, the Custodian shall, upon receipt of an Issuer Order executed by an Authorized Officer of the
Collateral Manager, delivered to the Trustee and the Custodian at least two Business Days prior to the date of delivery directed in such Issuer Order (or such fewer number of days as the Trustee may agree), deliver or cause to be delivered to or on
the order of the Collateral Manager any Instrument included in the Collateral to the related debtor for ultimate sale or exchange or for presentation, collection, enforcement, renewal or registration of transfer; provided that the lien of
this Agreement on such Instrument remains perfected in accordance with Section 9-312(g) of the UCC and such Instrument shall remain subject to the lien of this Agreement unless and until released in accordance with the foregoing clause (a).

 (c) The Trustee shall hold all Certificated Securities (that are not Clearing Corporation Securities, Clearstream Securities or Euroclear
Securities) and Instruments in physical form at the office of the Custodian which, initially, shall be U.S. Bank National Association, with its address at U.S. Bank National Association, 1719 Range Way, Florence, South Carolina 29501, Fax:
(843) 673-4925, Attention: Sandra Farrow – NewStar Structured Finance Opportunities LLC. Any successor custodian shall be a state or national bank or trust company which is not an Affiliate of the Issuer and has capital and surplus of at
least $250,000,000. 
 Section 6.5 Method of Collateral Transfer. The transfer of a Collateral Debt Security, Eligible Investment
or any other Collateral of one of the types set forth below to the Custodian to be held for the benefit of the Trustee, for the benefit of the Investor Agent, the Trustee, the Swingline Investor and the Investors, shall be done in the following
manner (with any and all other actions necessary to create in favor of the Trustee, for the benefit of the Investor Agent, the Trustee, the Swingline Investor and the Investors, a valid, first-priority security interest in each item of Collateral
under applicable law and regulations (including Articles 8 and 9 of the UCC) in effect at the time of such transfer): 
 (a)
each time that the Issuer, or the Collateral Manager on behalf of the Issuer, shall direct or cause the origination or acquisition of any Collateral Debt Security or Eligible Investment, the Collateral Manager (on behalf of the Issuer) shall, if
such Collateral Debt Security or Eligible Investment has not already been transferred to the Collateral Account and 

  

 11 

 
credited thereto, cause the transfer of such Collateral Debt Security or Eligible Investment, including any Instrument or Certificated Security together with
undated transfer powers executed in blank evidencing the same, to the Custodian to be held in and credited to the Collateral Account for the benefit of the Trustee in accordance with the terms of the Account Control Agreement; and 
 (b) in the case of a “general intangible” (within the meaning of the applicable Uniform Commercial Code), the Issuer shall,
within ten days of the Closing Date (or ten days of the acquisition date), file, or cause the filing of, all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law. 
 Section 6.6 Termination. Upon the payment in full of all Obligations (other than contingent indemnification obligations, as to which no claim
giving rise thereto has been asserted) and the termination of the Commitments, this Agreement shall terminate and the Trustee shall forthwith cause to be assigned, transferred and delivered, against receipt but without any recourse, warranty or
representation whatsoever, any remaining Collateral and money received in respect thereof, to or on the order of the Issuer. The Trustee shall also execute and deliver to the Issuer upon such termination and payment such Uniform Commercial Code
termination statements and such other documentation as shall be reasonably requested by the Issuer to effect the termination and release of the pledge, security interest, lien and right of set-off granted pursuant to Article II. 
 ARTICLE VII 
 MISCELLANEOUS 
 Section 7.1 Notices. All notices, requests, consents and demands hereunder shall be in writing and telecopied or delivered to the intended
recipient at the “Address for Notices” specified beneath its name on the signature pages hereto or, as to any party, at such other address as shall be designated by such party in a notice to each other party. Except as otherwise provided
in this Agreement, all such communications shall be deemed to have been duly given when transmitted by telecopier or personally delivered or, in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid. 
 Section 7.2 No Waiver. No failure on the part of the Trustee, the Swingline Investor or any Investor to exercise, and no course of dealing
with respect to,.and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof; nor shall any single or partial exercise by the Trustee, the Swingline Investor or any Investor of any right, power or remedy
hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy. The remedies herein are cumulative and are not exclusive of any remedies provided by law. 
 Section 7.3 Amendments, Etc. The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by
the Issuer and the Trustee (with the consent of the Required Investors as specified in the Note Purchase Agreement). 
 Section 7.4
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the Issuer, the Trustee, the Swingline Investor and the Investors. Neither party shall assign or
transfer any of its rights or obligations hereunder without the prior written consent of the other party (except that the Trustee may transfer all of 

  

 12 

 
its rights and obligations hereunder to any successor thereto under the Note Purchase Agreement), and any such purported assignment without such consent
shall be void. 
 Section 7.5 Counterparts. This Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument, and any of the parties hereto may execute this Agreement by signing any such counterpart. 
 Section 7.6 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
 Section 7.7 Waiver of Jury Trial. THE ISSUER, THE TRUSTEE AND THE CUSTODIAN HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 7.8 Captions. The
captions and section headings appearing herein are included solely for convenience of reference and are not intended to affect the interpretation of any provision of this Agreement. 
 Section 7.9 Agents and Attorneys-in-Fact. The Trustee may employ agents and attorneys-in-fact in connection herewith and shall not be
responsible for the negligence or misconduct of any such agents or attorneys-in-fact selected by it in good faith. 
 Section 7.10
Severability. If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be
liberally construed in favor of the Trustee, the Swingline Investor and the Investors in order to carry out the intentions of the parties hereto as nearly as may be possible and (b) the invalidity or unenforceability of any provision hereof in
any jurisdiction shall not affect the validity or enforceability of such provision in any other jurisdiction. 
 Section 7.11
Bankruptcy Non-Petition and Limited Recourse. Notwithstanding any other provision of this Agreement, each of the Trustee and the Custodian covenants and agrees that it shall not, prior to the date which is one year and one day (or, if longer,
any applicable preference period plus one day) after payment in full of the Obligations or, if any Offered Securities are issued, for at least one year and one day (or, if longer, any applicable preference period plus one day) after the latest
maturing Offered Security is paid in full, institute against, or join any other Person in instituting against, the Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or any similar proceeding under any federal
or state bankruptcy or similar law; provided, however, that nothing in this provision shall preclude, or be deemed to stop, the Trustee (a) from taking any action prior to the expiration of the aforementioned one year and one day
period in (i) any case or proceeding voluntarily filed or commenced by the Issuer or (ii) any involuntary insolvency proceeding filed or commenced against the Issuer by a person other than the Trustee, the Swingline Investor, any Investor
or any of their respective Affiliates or (b) from commencing against the Issuer or the Collateral any legal action which is not a bankruptcy, reorganization, arrangement, insolvency or a liquidation proceeding. No recourse shall be had for any
amounts payable or any other obligations arising under this Agreement against any officer, member, director, employee, partner or security holder of the Issuer or any of their respective successors or assigns. The provisions of this
Section 7.11 shall survive the termination of this Agreement. 
  

 13 

 IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed and
delivered as of the day and year first above written. 
  

					
	NEWSTAR STRUCTURED FINANCE OPPORTUNITIES, LLC
		
	By:	 	/s/ John J. Frishkopf
		 	Name:	 	John J. Frishkopf
		 	Title:	 	Managing Director
	
	 Address for Notices:
 c/o NewStar
Financial, Inc.
 500 Boylston Street, Suite 1600
 Boston, MA
02116
 Fax: (617) 848-4399
 Attention:
Operations

 Security Agreement 

					
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	/s/ Kyle Beth Harcourt
		 	Name:	 	Kyle Beth Harcourt
		 	Title:	 	Vice President
	
	 Address for Notices:
 U.S. Bank,
N.A.
 One Federal Street, 3rd Floor
 Boston, MA 02110

Fax: (503) 258-6028
 Attention: NewStar Structured Finance
Opportunities

 Security Agreement 

 INDEX 
 Annex 1 
 SCHEDULE OF COLLATERAL DEBT SECURITIES 
 NewStar Structured Finance Opportunities, LLC CDS List 
  

				
	 1st Financial 2005-1
	  	$	 4,500,000
	 Bayview Financial
	  	 	—  
	 CBA Commercial M-5
	  	 	5,100,000
	 CBA Commercial M-6
	  	 	1,340,000
	 CFH Funding LLC
	  	 	5,000,000
	 Equilease Funding Corporation
	  	 	5,000,000
	 Strong Capital 2005-1
	  	 	4,972,812
	 BlueGreen 2005-A Class E
	  	 	7,401,890
	 BlueGreen 2005-A Class F
	  	 	4,342,444
	 IndyMac 2005-L2 Class M
	  	 	3,000,000
	 Melrose Investors L.L.C.
	  	 	10,000,000
	 Popular/EquityOne 2005-C B1
	  	 	7,838,000
	 Popular 2005-D BI
	  	 	2,990,000
	 Popular 2005-D B2
	  	 	2,093,000
		  	 	 
	 Total:
	  	 	63,578,146

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