Document:

ex101exchangeagreement

1   EXCHANGE AGREEMENT   This EXCHANGE AGREEMENT (“Agreement”) is made and entered into as of June 22, 2015,   by and between First NBC Bank Holding Company, a Louisiana corporation and registered bank holding   company (“Company”), and Castle Creek Capital Partners IV, LP, a Delaware limited liability partnership   (“Investor”).   RECITALS:   WHEREAS, Investor is, as of the date hereof, the record holder of 364,983 shares of Company’s   Series C Convertible Preferred Stock (“Preferred Shares”);    WHEREAS, Company issued the Preferred Shares to Investor under that certain Securities   Purchase Agreement, dated June 29, 2011, between Company and Investor (“Securities Purchase   Agreement”); and   WHEREAS, Company and Investor desire to exchange (“Preferred Exchange”) all of the   Preferred Shares owned of record by Investor for an equivalent number of shares of Company’s common   stock, $1.00 par value (“Common Stock” and such shares of Common Stock exchanged for Preferred   Shares, “Exchange Shares”), on the terms and subject to the conditions set forth herein.   NOW, THEREFORE, in consideration of the foregoing and of the mutual representations,   warranties, covenants and agreements contained in this Agreement, and other good, valuable and lawful   consideration and cause, the receipt, sufficiency and validity of which are hereby acknowledged, the   parties agree as follows:   ARTICLE I.   DEFINITIONS; INTERPRETATION   Section 1.01 Definitions.  In this Agreement, unless the context otherwise requires:     “Bankruptcy Exception” means any limitation imposed by any bankruptcy, insolvency, fraudulent   conveyance, reorganization, receivership, moratorium or similar law affecting creditors’ rights and   remedies generally and, with respect to enforceability, by general principles of equity, including   principles of commercial reasonableness, good faith and fair dealing, regardless of whether enforcement   is sought in a proceeding at law or in equity.   “Business Day” means any day other than a Saturday, a Sunday or a day on which Louisiana state   banks are authorized or required to be closed.   “Constituent Documents” means, with respect to any entity, its certificate or articles of   incorporation, bylaws and any similar charter or other organizational documents.   “Governmental Entity” means any governmental body, whether administrative, executive,   judicial, legislative, regulatory, or taxing, including any international, federal, state, territorial, county,   municipal or other government or governmental agency, arbitrator, authority, board, body, branch,   bureau, or comparable agency or entity, commission, corporation, court, department, instrumentality,   mediator, panel, system or other political unit or subdivision or other entity of any of the foregoing.     “Material Adverse Effect” means any event, change, circumstance or occurrence that,   individually or in the aggregate, has had or would reasonably be expected to have a material adverse   effect on (A) the ability of Company to consummate the transactions contemplated by this Agreement in a   timely manner, or (B) the business, results of operation or financial condition of Company and its     

 

2   consolidated subsidiaries taken as a whole, except for any such effects resulting from (i) changes in   general business, economic or market conditions (including changes generally in prevailing interest rates,   credit availability and liquidity, currency exchange rates and price levels or trading volumes in the United   States or foreign securities or credit markets), or any outbreak or escalation of hostilities, declared or   undeclared acts of war or terrorism, in each case generally affecting the industries or geographic areas in   which Company and its Subsidiaries operate, (ii) changes or proposed changes in GAAP or regulatory   accounting requirements, or authoritative interpretations thereof, (iii) changes or proposed changes in   securities, banking and other laws of general applicability or related policies or interpretations of   Governmental Entities (in the case of each of these clauses (i), (ii) and (iii), other than changes or   occurrences to the extent that such changes or occurrences have or would reasonably be expected to have   a disproportionate adverse effect on Company and its consolidated subsidiaries taken as a whole relative   to comparable U.S. banking or financial services organizations), (iv) changes in the market price or   trading volume of Common Stock or any other equity, equity-related or debt securities of Company or its   consolidated subsidiaries (it being understood and agreed that the exception set forth in this clause (iv)   does not apply to the underlying reason giving rise to or contributing to any such change); or (v) actions   or omissions of Company or any Subsidiary expressly required by the terms of the Preferred Exchange.   “Subsidiary” has the meaning ascribed to that term in Rule 1-02 of Regulation S-X promulgated   by the Securities and Exchange Commission.   Section 1.02 Interpretation.  The table of contents, headings and captions contained in this   Agreement are for convenience of reference only and in no way define, describe, extend, or limit the   scope or intent of this Agreement or any provision of this Agreement.  When a reference is made in this   Agreement to the Preamble or Recitals or a Section or Schedule, such reference is to the Preamble or   Recitals to, a Section of, or Schedules to this Agreement unless otherwise indicated.  Any agreement,   instrument or statute defined or referred to in this Agreement or in any agreement or instrument that is   referred to in this Agreement means such agreement, instrument or statute in effect as of the date of this   Agreement unless the context in which the agreement, instrument or statute is used expressly provides   otherwise.  References to a person are also to its successors and permitted assigns.  Whenever the words   “include,” “includes,” or “including” are used in this Agreement, they are deemed to be followed by the   words “without limitation.”  The words “hereof,” “herein” and “hereunder” and words of similar import   when used in this Agreement refer to this Agreement as a whole and not to any particular provision of the   Agreement.  Each use of the plural is deemed to include the singular, and vice versa, in each case as the   context requires.  This Agreement is the product of negotiation by the parties, having assistance of   counsel and other advisors.  The parties intend that this Agreement not be construed more strictly with   regard to one party than with regard to the other.  All references to days in this Agreement are to calendar   days, unless the context expressly otherwise provides, except that any time period provided for in this   Agreement that ends on a day other than a Business Day will extend to the next Business Day.    ARTICLE II.   THE EXCHANGE; CLOSING   Section 2.01 The Closing.   A. Subject to the satisfaction or waiver of the closing conditions set forth in   Section 2.02, the closing of the Preferred Exchange (“Closing”) will take place on the date hereof   (“Closing Date”) remotely via the electronic exchange of documents and signature pages.   B. At the Closing (i) Company will issue, or cause its transfer agent to issue, the   Exchange Shares in the name of Investor in book entry form and deliver or cause to be delivered   reasonably satisfactory evidence of such registration to Investor and (ii) Investor will deliver to Company     

 

3   one or more certificates representing the Preferred Shares, together with an irrevocable stock power   executed by Investor.   Section 2.02 Conditions to Closing.   A. The obligation of each party to consummate the Preferred Exchange is subject to   the satisfaction or waiver, at or prior to the Closing, of the following conditions:   (i) all approvals, non-objections or authorizations of all Governmental   Entities required for the consummation of the Preferred Exchange will have been obtained or made in   form and substance reasonably satisfactory to each party and will be in full force and effect and all   applicable waiting periods, if any, will have expired;   (ii) No action will have been taken, and no law, regulation or order will have   been promulgated, enacted, entered, enforced or deemed applicable to the Preferred Exchange by any   Governmental Entity, including the entry of a preliminary or permanent injunction, that would (1) make   the Agreement or the transactions contemplated hereby, illegal, invalid or unenforceable in any material   respect, (2) impose material limits on the ability of any party to this Agreement to consummate the   transactions contemplated by this Agreement, or (3) otherwise prohibit or restrain the Preferred   Exchange; and no proceeding before any Governmental Entity will have been threatened, instituted or   pending that would reasonably be expected to result in any of the consequences referred to in clauses (1)   through (3) above; and   (iii) The issuance of the Exchange Shares will not cause the number of shares   of Common Stock owned by Investor, taking into account the effect of the Exchange Shares, to exceed   12.0% of the issued and outstanding shares of Common Stock.   B. The obligation of Investor to consummate the Preferred Exchange is also subject   to the satisfaction or waiver, at or prior to the Closing, of the following conditions:   (i) The representations and warranties of Company in this Agreement will   be true and correct, in all material respects, as of the date of this Agreement and as of the Closing Date   (other than representations and warranties that by their terms speak as of another date, which   representations and warranties will be true and correct in all material respects as of such other date);   (ii) The covenants and obligations of Company to be performed or observed   on or before the Closing Date under this Agreement will have been performed or observed in all material   respects; and   (iii) Investor shall have received a certificate signed on behalf of the   Company by an executive officer certifying to the effect that the conditions set forth in Sections   2.02(B)(i)-(ii) have been satisfied.   C. The obligation of Company to consummate the Preferred Exchange is also   subject to the satisfaction or waiver, at or prior to the Closing, of the following conditions:   (i) The representations and warranties of Investor in this Agreement will be   true and correct, in all material respects, as of the date of this Agreement and as of the Closing Date (other   than representations and warranties that by their terms speak as of another date, which representations and   warranties will be true and correct in all material respects as of such other date); and     

 

4   (ii) The covenants and obligations of Investor to be performed or observed   on or before the Closing Date under this Agreement will have been performed or observed in all material   respects.   ARTICLE III.   REPRESENTATIONS AND WARRANTIES OF COMPANY   Company makes the following representations and warranties to Investor as of the date of this   Agreement and as of the Closing Date.   Section 3.01 Organization, Authority and Significant Subsidiaries.   Company is duly   organized, validly existing and in good standing under the laws of the State of Louisiana and has all   necessary power and authority to own, operate and lease its properties and to carry on its business in all   material respects as it is being currently conducted, and except as has not, individually or in the aggregate,   had and would not reasonably be expected to have a Material Adverse Effect, has been duly qualified as a   foreign corporation for the transaction of business and is in good standing under the laws of each other   jurisdiction in which it owns or leases properties or conducts any business so as to require such   qualification.  Each Subsidiary of Company that is a “significant subsidiary” within the meaning of Rule   1-02(w) of Regulation S-X under the Securities Act of 1933, as amended (“Securities Act”), including,   without limitation, First NBC Bank, has been duly organized and is validly existing in good standing   under the laws of its jurisdiction of organization.  The certificate of incorporation and bylaws of the   Company, copies of which have been provided to Investor prior to the date hereof, are true, complete and   correct copies of such documents as in full force and effect as of the date hereof.   Section 3.02 Capitalization.  The authorized capital stock of Company consists of 100,000,000   shares of Common Stock, 18,656,738 of which were issued and outstanding as of the date hereof.  The   outstanding shares of Common Stock have been duly authorized and are validly issued and outstanding,   fully paid and nonassessable, and have not been issued in violation of the preemptive rights of any person   and have been issued in compliance with applicable securities laws.  As of the date hereof, Company does   not have outstanding any securities or other obligations providing the holder the right to acquire Common   Stock that is not reserved for issuance.  The Common Stock is listed on the Nasdaq Global Select Market   (“NASDAQ”).   Section 3.03 Authorization and Enforceability.  Company has the corporate power and   authority to execute and deliver this Agreement and to carry out its obligations under this Agreement.    The execution, delivery and performance by Company of this Agreement and the consummation of the   transactions contemplated hereby have been duly authorized by all necessary corporate action on the part   of Company, and no further approval or authorization is required on the part of Company.  This   Agreement has been duly and validly executed and delivered by Company.  Assuming due authorization,   execution and delivery by Investor, this Agreement constitutes the legal, valid and binding obligation of   Company, enforceable against Company in accordance with its terms and conditions, except as   enforceability may be limited by the Bankruptcy Exception.   Section 3.04 Exchange Shares.  The Exchange Shares have been duly and validly authorized   by all necessary action, and, when issued and delivered in accordance with this Agreement, such   Exchange Shares will be duly and validly issued and fully paid and non-assessable free and clear of any   liens or encumbrances, will not be issued in violation of any preemptive rights, and will not subject the   holder thereof to personal liability.     

 

5   Section 3.05 Non-Contravention.   A. Neither the execution, delivery or performance of this Agreement nor the   consummation of the transactions contemplated by this Agreement, constitutes or will constitute (i) a   breach or violation of any provision of the Constituent Documents of Company; (ii) a violation of any   law, regulation or order applicable to Company or any Subsidiary or any of their respective properties or   assets; or (iii) a breach or violation of, a conflict with, the loss of any benefit under, a default (or an event   which, with notice or the lapse of time, or both, would constitute a default) under, an event of termination   or cancellation under, an event giving rise to acceleration of the performance required by or rights or   obligations under, or an event resulting in the creation of any lien upon any of the properties or assets of   Company or any Subsidiary under, any loan or credit agreement, note, bond, mortgage, indenture, lease or   other agreement, instrument, permit, concession, franchise, license or similar authorization to which   Company or any Subsidiary is a party, or by which it or any of its properties, assets or business activities   may be bound or affected, except, in the case of clauses (ii) and (iii), for those occurrences that,   individually or in the aggregate, have not had and would not reasonably be expected to have a Material   Adverse Effect.   B. Other than the filing of a current report on Form 8-K with the Securities and   Exchange Commission (“SEC”), such filings and approvals as are required to be made or obtained under   any state “blue sky” laws, and such consents and approvals that have been made or obtained, no approval,   consent, order or authorization of, or registration, declaration or filing with, any Governmental Entity or   other third party is required to be made or obtained by Company in connection with the execution,   delivery or performance of this Agreement or to consummate the transactions contemplated by this   Agreement.  The issuance of the Exchange Shares will not require a Listing of Additional Shares   notification to be submitted to NASDAQ.     Section 3.06 Anti-Takeover Provisions.  The consummation of the transactions contemplated   by this Agreement will not be subject to any “moratorium,” “control share,” “fair price,” “interested   stockholder” or other anti-takeover laws and regulations under the laws of the State of Louisiana or the   Constituent Documents of Company.   Section 3.07 No Material Adverse Effect.  Since December 31, 2014, no fact, circumstance,   event, change, occurrence, condition or development has occurred that, individually or in the aggregate,   has had or would reasonably be likely to have a Material Adverse Effect.   Section 3.08 Offering of Securities.  Neither Company nor any person acting on its behalf has   taken any action (including any offering of any securities of Company under circumstances which would   require the integration of such offering with the offering of the Exchange Shares under the Securities Act   and the rules and regulations of the SEC promulgated thereunder), which might subject the offering,   issuance or sale of the Exchange Shares to Investor under this Agreement to the registration requirements   of the Securities Act.   Section 3.09 Brokers and Finders.  No broker, finder or investment banker is entitled to any   financial advisory, brokerage, finder’s or other fee or commission in connection with this Agreement or   the transactions contemplated hereby based upon arrangements made by or on behalf of Company or any   Company Subsidiary for which Investor could have any liability.   ARTICLE IV.   REPRESENTATIONS AND WARRANTIES OF INVESTOR   Investor makes the following representations and warranties to Company as of the date of this   Agreement and as of the Closing Date.     

 

6   Section 4.01 Organization; Authority.  Investor is an entity, duly organized, validly existing   and in good standing under the laws of the jurisdiction of its organization with the requisite power and   authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise   to carry out its obligations hereunder.  The execution, delivery and performance by Investor of this   Agreement and the consummation of the transactions contemplated hereby have been duly authorized by   all necessary action on the part of Investor, and no further approval or authorization is required on the part   of Investor.  This Agreement has been duly and validly executed and delivered by Investor.  Assuming   due authorization, execution and delivery by Company, this Agreement constitutes the legal, valid and   binding obligation of Investor, enforceable against Investor in accordance with its terms and conditions,   except as enforceability may be limited by the Bankruptcy Exception.   Section 4.02 No Conflicts.  The execution, delivery and performance by Investor of this   Agreement and the consummation by Investor of the transactions contemplated hereby will not (A) result   in a violation of the Constituent Documents of Investor; (B) conflict with, or constitute a default (or an   event which with notice or lapse of time or both would become a default) under, or give to any other   person any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or   instrument to which Investor is a party; or (C) result in a violation of any law, rule, regulation, order,   judgment or decree (including federal and state securities laws) applicable to Investor, except in the case   of clauses (B) and (C) above, for such conflicts, defaults, rights or violations which would not,   individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of   Investor to consummate the transactions contemplated by this Agreement.   ARTICLE V.   ADDITIONAL AGREEMENTS   Section 5.01 Commercially Reasonable Efforts.  Subject to the terms and conditions of this   Agreement, each party will use its commercially reasonable efforts in good faith to take, or cause to be   taken, all actions, and to do, or cause to be done, all things necessary, proper or desirable, or advisable   under applicable laws, so as to permit consummation of the Preferred Exchange, as promptly as   practicable and otherwise to enable consummation of the transactions contemplated hereby and will use   commercially reasonable efforts to cooperate with the other party to that end.   Section 5.02 Certain Notifications.  From the date hereof until the Closing, each party will   promptly notify the other party (A) of any fact, event or circumstance of which it becomes aware and   which would reasonably be likely to cause any representation or warranty of such party contained in this   Agreement to be untrue or inaccurate in any material respect or to cause any covenant or agreement of   such party contained in this Agreement not to be complied with or satisfied in any material respect or (B)   of any action or proceeding pending or, to the knowledge of such party, threatened against such party that   questions or might question the validity of this Agreement or seeks to enjoin or otherwise restrain the   transactions contemplated hereby; provided, however, that delivery of any notice in accordance with this   Section will not limit or affect any rights of or remedies available to such other party.   Section 5.03 Unregistered Exchange Shares.     A. Investor acknowledges that the Exchange Shares have not been registered under   the Securities Act or under any state securities laws and are being issued in reliance on an exemption   from federal securities registration under Section 3(a)(9) of the Securities Act.  As a result, Investor   agrees that the Exchange Shares may be disposed of only under an effective registration statement under,   and in compliance with the requirements of, the Securities Act, or in accordance with an available   exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, and   in compliance with any applicable state, federal or foreign securities laws.       

 

7   B. Certificates evidencing the Exchange Shares will bear a restrictive legend in   substantially the following form, until such time as they are not required under applicable law:   THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE   SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR   APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT   BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN   THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT   FOR THE SECURITIES UNDER THE SECURITIES ACT OR (B) AN   AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT   SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE   SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE   SECURITIES LAWS OR BLUE SKY LAWS AS EVIDENCED BY A LEGAL   OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMPANY   OR (II) UNLESS SOLD IN ACCORDANCE WITH RULE 144 UNDER SAID   ACT (PROVIDED THAT THE TRANSFEROR PROVIDES COMPANY   WITH REASONABLE ASSURANCES (IN THE FORM OF A SELLER   REPRESENTATION LETTER) THAT THE SECURITIES MAY BE SOLD IN   ACCORDANCE WITH SUCH RULE). NO REPRESENTATION IS MADE   BY THE ISSUER AS TO THE AVAILABILITY OF THE EXEMPTION   PROVIDED BY RULE 144 UNDER THE SECURITIES ACT FOR RESALES   OF THESE SECURITIES.    C. Company will take such action as may be necessary and appropriate to cause its   transfer agent to issue to Investor new book entry Exchange Shares without such restrictive legends as set   forth in Section 5.03(B) in exchange for the book entry shares issued to Investor under Section 2.01B of   this Agreement upon the earliest to occur of the following: (i) such Exchange Shares are registered for   resale under the Securities Act, (ii) such Exchange Shares are sold or transferred under Rule 144   promulgated under the Securities Act (“Rule 144”), or (iii) such Exchange Shares are eligible for sale   under Rule 144, without the requirement for Company to be in compliance with the current public   information required under Rule 144(c)(1) (or Rule 144(i)(2), if applicable) as to such securities and   without volume or manner-of-sale restrictions.   Section 5.04 Certain Transactions.  In the event of a sale by Company of all or substantially all   of its assets by means of an asset sale (but not by merger or consolidation or other transaction pursuant to   which the acquiring party would by operation of law assume the contractual obligations of Company),   Company will require the purchaser to agree in writing to assume all of Company’s obligations under this   Agreement in the same manner and to the same extent that Company would be required to perform them,   absent such sale.   Section 5.05 Transfer of Exchange Shares.  Subject to compliance with applicable securities   laws, Investor shall be permitted to transfer, sell, assign or otherwise dispose of (“Transfer”) all or a   portion of the Exchange Shares at any time, and Company shall take all steps as may be reasonably   requested by Investor to facilitate the Transfer of the Exchange Shares.   ARTICLE VI.   MISCELLANEOUS   Section 6.01 Termination.  This Agreement may be terminated at any time prior to the   Closing:     

 

8   A. By either party, if the Closing has not occurred by June 30, 2015; provided,   however, that if the Closing has not occurred by such date, the parties will consult in good faith to   determine whether to extend the term of this Agreement, it being understood that the parties will be   required to consult only until the fifth day after such date and not be under any obligation to extend the   term of this Agreement thereafter; provided, further, that the right to terminate this Agreement under this   Section 6.01 will not be available to any party whose breach of any representation or warranty or failure   to perform any obligation under this Agreement will have caused or resulted in the failure of the Closing   to occur on or prior to such date;   B. By either party, in the event that any Governmental Entity has issued an order,   decree or ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions   contemplated by this Agreement (or if any such Governmental Entity informs Investor or Company that it   intends to disapprove any notice or application required to be filed by such party in order to consummate   the transactions contemplated by this Agreement) and such order, decree, ruling or other action will have   become final and non-appealable; or   C. Upon the mutual written consent of Investor and Company.   The power of termination provided for by this Section 6.01 may be exercised only by a notice given in   writing, as provided in Section 6.06.  If this Agreement is terminated, neither party will have any further   liability or obligation under this Agreement; provided, however, that termination will not relieve a party   from any liability for any breach by it occurring prior to termination.   Section 6.02 Survival of Representations and Warranties.  The representations and warranties   of Investor contained herein will not survive the Closing.  The representations and warranties of Company   will survive the Closing for a period of six (6) months; provided that the representations and warranties of   the Company in Sections 3.01, 3.02, 3.03 and 3.04 will survive indefinitely.   Section 6.03 Amendment; Extension; Waiver.  Company and Investor may amend this   Agreement, extend the time for the performance of any obligations or other acts of any other party to this   Agreement, waive any inaccuracy in the representations and warranties contained in this Agreement, or   waive compliance with any agreements or conditions contained in this Agreement by an instrument   signed in writing by or on behalf of each party.  No party to this Agreement will by any act (other than a   written instrument) be deemed to have waived any right or remedy hereunder or to have acquiesced in   any breach of any of the terms and conditions of this Agreement.  No failure to exercise, nor any delay in   exercising, any right, power or privilege hereunder by any party will operate as a waiver.  No waiver of   any provision, or any portion of any provision, of this Agreement will constitute a waiver of any other   part of the provision or any other provision of this Agreement, nor will it operate as a waiver, or estoppels   with respect to, any subsequent or other failure.  Notwithstanding the foregoing, a party may unilaterally   waive a right that is solely applicable to it.  The rights and remedies herein provided will be cumulative of   any rights or remedies provided by law.   Section 6.04 Governing Law.  This Agreement and the rights and obligations of the parties   subject to this Agreement will be governed by, and construed in accordance with, the laws of the State of   Louisiana, without regard to the laws that might otherwise govern under applicable principles of conflicts   of laws.  Each party irrevocably waives personal service of process and consents to process being served   in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery   (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and   agrees that such service will constitute good and sufficient service of process and notice thereof.  Nothing   contained herein will be deemed to limit in any way any right to serve process in any manner permitted   by law.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law,     

 

9   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 6.06 Notices.   Any and all notices or other communications or deliveries required or   permitted to be provided under this Agreement will be in writing and will be deemed given and effective   on the earliest of (a) the date of transmission, if such notice or communication is delivered by facsimile   (provided the sender receives a machine-generated confirmation of successful transmission) at the   applicable facsimile number specified below prior to 5:00 p.m., New Orleans, Louisiana time, on a   Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is   delivered by facsimile at the applicable facsimile number specified below on a day that is not a Business   Day or later than 5:00 p.m., New Orleans, Louisiana time, on any Business Day, (c) the Business Day   following the date of mailing, if sent by U.S. nationally recognized overnight courier service with next   day delivery specified, or (d) upon actual receipt by the party to whom such notice is required to be given.    The address for such notices and communications will be as follows:   If to Company:   First NBC Bank Holding Company   210 Baronne Street    New Orleans, Louisiana 70112   Attention: Ashton J. Ryan, Jr.   Fax: (504) 671-3801    Electronic mail: aryanjr@firstnbcbank.com   With a copy to:   Fenimore, Kay, Harrison & Ford, LLP   812 San Antonio Street, Suite 600   Austin, Texas  78701   Attention: Geoffrey S. Kay    Fax: (512) 583-5940   Electronic mail: gkay@fkhpartners.com   If to Investor:      Castle Creek Capital Partners IV, LP   c/o Castle Creek Capital LLC   6051 El Tordo   Rancho Santa Fe, California 92067   Attention:  Mark Merlo   Facsimile:  (858) 759-8301   Email:  mmerlo@castlecreek.com       With a copy to:       Klee, Tuchin, Bogdanoff & Stern LLP   1999 Avenue of the Stars, 39th Floor   Los Angeles, California   Attention:  Vijay S. Sekhon   Fax:  (310) 407-9090   Email:  vsekhon@ktbslaw.com         

 

10   Section 6.07 Assignment.   No party to this Agreement will assign this Agreement or any of its   rights or obligations, in whole or in part, without the prior written consent of the other party.  Subject to   the foregoing, this Agreement will be binding upon and will inure to the benefit of the respective legal   representatives, successors and permitted assigns of the parties.      Section 6.08 Severability.  If any provision of this Agreement, or the application thereof to   any person or circumstance, is determined by a court of competent jurisdiction to be invalid, void or   unenforceable, the remaining provisions hereof, or the application of such provision to persons or   circumstances other than those as to which it has been held invalid or unenforceable, will remain in full   force and effect and will in no way be affected, impaired or invalidated thereby, so long as the economic   or legal substance of the transactions contemplated hereby is not affected in any manner materially   adverse to any party.  Upon such determination, the parties will negotiate in good faith in an effort to   agree upon a suitable and equitable substitute provision to effect the original intent of the parties.   Section 6.09 No Third-Party Beneficiaries.  Nothing contained in this Agreement, expressed   or implied, is intended to confer upon any person or entity other than Company and Investor any benefit,   right or remedies.   Section 6.10 Entire Agreement, etc.  This Agreement constitutes the entire agreement, and   supersedes all other prior agreements, understandings, representations and warranties, both written and   oral, between the parties, with respect to the subject matter hereof.  For the avoidance of doubt, the   Securities Purchase Agreement will remain in full force and effect, but will be deemed amended hereby,   and any provisions in this Agreement that supplement, duplicate or contradict any provision of the   Securities Purchase Agreement will be deemed to supersede the corresponding provision of the Securities   Purchase Agreement from and after the effective date hereof.   Section 6.11 Counterparts.   This Agreement may be signed in multiple counterparts, each of   which will be deemed an original, and all counterparts together will be deemed to be one and the same   Agreement.  A telecopy, facsimile or electronic scan in “PDF” format of a signed counterpart of this   Agreement will be sufficient to bind the party or parties whose signature(s) appear thereon.   Section 6.12 Specific Performance.  The parties agree that irreparable damage would occur in   the event that any of the provisions of this Agreement were not performed in accordance with their   specific terms.  It is accordingly agreed that the parties will be entitled (without the necessity of posting a   bond) to specific performance of the terms hereof, this being in addition to any other remedies to which   they are entitled at law or equity.   Section 6.13 Expenses.  Except as otherwise expressly provided in this Agreement, all costs   and expenses incurred in connection with this Agreement will be borne and paid by the party incurring   the expense.    

 

   11   IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by   their respective authorized signatories as of the date first indicated above.   FIRST NBC BANK HOLDING COMPANY         By:  /s/ Ashton J. Ryan, Jr.        Ashton J. Ryan, Jr.     President and Chief Executive Officer         CASTLE CREEK CAPITAL PARTNERS IV, L.P.   By: Castle Creek Capital IV LLC, its general partner       By:   /s/ Mark Merlo         Name:   Mark Merlo         Title: Managing PrincipalFS Investment Corporation III 8-K

EXHIBIT 10.1

EXECUTION COPY

AMENDED
AND RESTATED SALE AND CONTRIBUTION AGREEMENT

between

FS INVESTMENT CORPORATION III,

as Seller

 

and

GERMANTOWN FUNDING LLC,

as Purchaser

Dated as of June 18, 2015

 

    	 

    	 

    

 

TABLE
OF CONTENTS

  

	 	 	Page
	ARTICLE I	DEFINITIONS	1
	SECTION 1.1	Definitions	1
	SECTION 1.2	Other Terms	4
	SECTION 1.3	Computation of Time Periods	4
	ARTICLE II	CONVEYANCES OF TRANSFERRED ASSETS	4
	SECTION 2.1	Conveyances	4
	SECTION 2.2	Indemnification	6
	ARTICLE III	CONSIDERATION AND PAYMENT; REPORTING	7
	SECTION 3.1	Purchase Price	7
	SECTION 3.2	Payment of Purchase Price	7
	ARTICLE IV	REPRESENTATIONS AND WARRANTIES	7
	SECTION 4.1	Seller’s Representations and Warranties	7
	SECTION 4.2	Reaffirmation of Representations and Warranties by the Seller	12
	ARTICLE V	COVENANTS OF THE SELLER	12
	SECTION 5.1	Covenants of the Seller	12
	ARTICLE VI	WARRANTY ASSETS	14
	SECTION 6.1	Warranty Transferred Assets	14
	ARTICLE VII	CONDITIONS PRECEDENT	14
	SECTION 7.1	Conditions Precedent	14
	ARTICLE VIII	MISCELLANEOUS PROVISIONS	15
	SECTION 8.1	Amendments, Etc	15
	SECTION 8.2	Governing Law: Submission to Jurisdiction	15
	SECTION 8.3	Notices	15
	SECTION 8.4	Severability of Provisions	16
	SECTION 8.5	Reserved; Further Assurances	16
	SECTION 8.6	No Waiver; Cumulative Remedies	16
	SECTION 8.7	Counterparts	17
	SECTION 8.8	Binding Effect; Third-Party Beneficiaries	17
	SECTION 8.9	Merger and Integration	17
	SECTION 8.10	Headings	17
	SECTION 8.11	Non-Petition; Limited Recourse	18

 

    	-i-

    	 

    

 

 

This
AMENDED AND RESTATED SALE AND CONTRIBUTION AGREEMENT, dated as of June 18, 2015 (as amended, supplemented or otherwise modified
and in effect from time to time, this “Agreement”), between FS Investment Corporation III, a Maryland corporation,
as seller (in such capacity together with successors and permitted assigns, the “Seller”) and Germantown Funding
LLC, a Delaware limited liability company, as purchaser (in such capacity, the “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS,
the Seller and Purchaser entered into that certain Sale and Contribution Agreement, dated as of April 28, 2015 (the “Existing
Sale and Contribution Agreement”);

 

WHEREAS,
the Purchaser purchased and received as a capital contribution certain debt securities and other obligations pursuant to the Existing
Sale and Contribution Agreement prior to the Restatement Date (as defined below), and may also wish to purchase and receive certain
debt securities and other obligations from time to time on or after the Restatement Date;

 

WHEREAS,
the Seller sold, assigned and contributed debt securities and other obligations pursuant to the Existing Sale and Contribution
Agreement prior to the Restatement Date, and may also wish to sell, assign and contribute certain debt securities and other obligations
to the capital of the Purchaser on the Restatement Date and from time to time on each Subsequent Conveyance Date; and

 

WHEREAS,
the Seller and Purchaser desire to amend and restate the Existing Sale and Contribution Agreement upon the terms and conditions
hereinafter set forth;

 

WHEREAS,
the Purchaser will issue certain floating rate notes due October 15, 2027 (the “Notes”) pursuant to an indenture
dated as of the date hereof (the “Indenture”), by and between the Purchaser, as Issuer, and Citibank, N.A.,
as trustee (the “Trustee”); and

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Existing Sale
and Contribution Agreement is hereby amended and restated as follows:

 

ARTICLE
I

DEFINITIONS

 

SECTION
1.1 Definitions. As used in this Agreement, the following terms shall have the following meanings (such meanings to
be equally applicable to both the singular and plural forms of the terms defined).

 

    	-1-

    	 

    

  

“Adverse
Claim” means any claim of ownership or any Lien, title retention, trust or other charge or encumbrance, or other type
of preferential arrangement having the effect or purpose of creating a Lien.

 

“Agreement”
has the meaning set forth in the preamble hereto.

 

“Applicable
Law” means for any Person all laws, rules, regulations (including temporary and final income tax regulations), statutes,
treaties, codes, ordinances, permits, certificates, orders, licenses of and interpretations by any Official Body applicable to
such Person and applicable judgments, decrees, injunctions, writs, awards or orders of any court, arbitrator or other administrative,
judicial, or quasi-judicial tribunal or agency of competent jurisdiction.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which banking institutions in New York, New York are
authorized or obligated by law, executive order or government decree to remain closed. All references to any “day”
or any particular day of any “calendar month” shall mean calendar day unless otherwise specified.

 

“Closing
Date” shall mean the “Closing Date” under and as defined in the Indenture.

 

“Collections”
shall mean all payments and collections owing to the Purchaser on any Collateral Obligation.

 

“Convey”
means to sell, transfer, assign, contribute or otherwise convey assets hereunder.

 

“Conveyance”
means, as the context may require, the Initial Conveyance or a Subsequent Conveyance.

 

“Existing
Sale and Contribution Agreement” has the meaning set forth in the recitals.

 

“Indorsement”
has the meaning specified in Section 8-102(a)(11) of the UCC, and “Indorsed” has a corresponding meaning.

 

“Initial
Conveyance” has the meaning set forth in Section 2.1(a).

 

“Investment
Management Agreement” means the Amended and Restated Investment Management Agreement, dated as of the date hereof, by
and between the FS Investment Corporation III, as Investment Manager, and the Purchaser.

 

“Lien”
means any security interest, lien, charge, pledge, preference, equity or encumbrance of any kind, including tax liens, mechanics’
liens and any liens that attach by operation of law.

 

“Obligor”
means any Person who is an obligor under any Transferred Asset.

 

    	-2-

    	 

    

 

“Official
Body” means any government or political subdivision or any agency, authority, regulatory body, bureau, central bank,
commission, department or instrumentality of any such government or political subdivision, or any court, tribunal, grand jury
or arbitrator, in each case whether foreign or domestic.

 

“Permitted
Lien” means (i) the Lien in favor of the Purchaser, (ii) Liens for Taxes and mechanics’ or suppliers’ liens
for services or materials supplied, in either case, not yet due and payable and for which adequate reserves have been established
in accordance with GAAP and (iii) any other lien as mutually agreed upon by the Seller and Purchaser.

 

“Purchase
Date” means each Subsequent Conveyance Date and the date of each Initial Conveyance.

 

“Purchase
Notice” has the meaning set forth in Section 2.1(b).

 

“Purchase
Price” has the meaning set forth in Section 3.1.

 

“Purchaser”
has the meaning set forth in the preamble hereto.

 

“Related
Security” means, with respect to each Transferred Asset:

 

(a)     any
property securing such Transferred Asset, all payments paid in respect thereof and all monies due, to become due and paid in respect
thereof accruing after the applicable Purchase Date and all liquidation proceeds thereof;

 

(b)    all
guaranties, indemnities and warranties, insurance policies, financing statements and other agreements or arrangements of whatever
character from time to time supporting or securing payment of any such indebtedness;

 

(c)    all
Collections with respect to such Transferred Asset and any of the foregoing; and

 

(d)    any
guarantees or similar credit enhancement for an Obligor’s obligations under such Transferred Asset, all UCC financing statements
or other filings relating thereto, including all rights and remedies, if any, against any Related Security, including all amounts
due and to become due to the Purchaser thereunder and all rights, remedies, powers, privileges and claims of the Purchaser thereunder
(whether arising pursuant to the terms of such agreement or otherwise available to the Purchaser at law or in equity).

 

“Repurchase
Amount” means, for any Warranty Transferred Asset for which a payment is being made pursuant to Section 6.1 as
of any time of determination, an amount equal to the purchase price paid by the Purchaser for such Transferred Asset (excluding
purchased accrued interest and original issue discount) less any payments received in connection with such Transferred Asset.

 

    	-3-

    	 

    

 

“Retained
Interest” means, with respect to any Transferred Asset, (a) such obligations to provide additional funding with respect
to such Transferred Asset that have been retained by the other lender(s) of such Transferred Asset, (b) all of the rights and
obligations, if any, of the agent(s) under the underlying instruments of such Transferred Asset, (c) any unused commitment fees
associated with the additional funding obligations that are being retained in accordance with clause (a) above, and (d) any agency
or similar fees associated with the rights and obligations of the agent(s) that are being retained in accordance with clause (b)
above.

 

“Restatement
Date” means June 18, 2015.

 

“Schedule
of Transferred Assets” has the meaning set forth in Section 2.1(a).

 

“Seller”
has the meaning set forth in the preamble hereto.

 

“Subsequent
Conveyance” has the meaning set forth in Section 2.1(b).

 

“Subsequent
Conveyance Date” has the meaning set forth in Section 2.1(b).

 

“Taxes”
means all taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other
charges imposed by any Official Body, including any interest, additions to tax or penalties applicable thereto.

 

“Transaction
Documents” means this Agreement and the Investment Management Agreement, and any other documents to be executed and
delivered in connection with the foregoing.

 

“Transferred
Assets” means a portfolio of debt securities and other obligations.

 

“Warranty
Transferred Assets” has the meaning set forth in Section 6.1.

 

 SECTION
1.2 Other Terms. All
accounting terms not specifically defined herein shall be construed in accordance with generally accepted accounting principles.
All terms used in Article 9 of the UCC, and not specifically defined herein, are used herein as defined in such Article 9. The
term “including” when used in this Agreement means “including without limitation.” Except as otherwise
provided herein, terms not defined in this Agreement shall have the respective meanings set forth in the Indenture.

 

SECTION
1.3 Computation of Time Periods. Unless
otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the
word “from” means “from and including” and the words “to” and “until” each means
“to but excluding.”

 

ARTICLE
II

CONVEYANCES OF TRANSFERRED ASSETS

 

SECTION
2.1Conveyances.

 

(a)    On
the terms and subject to the conditions set forth in this Agreement, the Seller Conveyed to the Purchaser prior to the Restatement
Date, and the Purchaser purchased and accepted from the Seller prior to the Restatement Date (the “Initial Conveyance”),
all of the Seller’s right, title and interest in and to each Transferred Asset listed on Schedule A to this
Agreement (as such schedule may be amended, supplemented, updated or otherwise modified from time to time, the “Schedule
of Transferred Assets”), together with all other Related Security and all proceeds of the foregoing but excluding the
Retained Interests (if any) for such Transferred Asset. Each Transferred Asset Conveyed prior to the Restatement Date and listed
on Schedule A (as in effect on the Restatement Date, prior to giving effect to any amendment, supplement, update or
other modification) was sold by the Seller and purchased by the Purchaser.

 

    	-4-

    	 

    

 

(b)    In
the event the Purchaser agrees, from time to time after the Restatement Date, to acquire additional Transferred Assets (including
Related Security) from the Seller, the Purchaser shall deliver written notice thereof to the Seller substantially in the form
set forth in Schedule B hereto (each a “Purchase Notice”), designating the date of the proposed
Conveyance (a “Subsequent Conveyance Date”, and each such conveyance being herein called a “Subsequent
Conveyance”), and attaching a supplement to the Schedule of Collateral Obligations identifying the Transferred Assets
proposed to be Conveyed. On the terms and subject to the conditions set forth in this Agreement, the Seller shall Convey to the
Purchaser, and the Purchaser shall purchase, on the applicable Subsequent Conveyance Date, all of the Seller’s right, title
and interest in and to each Transferred Asset then reported by the Seller on the supplement to the Schedule of Transferred Assets
attached to the related Purchase Notice, together with all other Related Security and all proceeds of the foregoing but excluding
the Retained Interests (if any) for such Transferred Asset.

 

(c)    It
is the express intent of the Seller and the Purchaser that each Conveyance of Transferred Assets by the Seller to the Purchaser
pursuant to this Agreement be construed as an absolute sale and/or contribution of such Transferred Assets by the Seller to the
Purchaser. Further, it is not the intention of the Seller and the Purchaser that any purchase be deemed a grant of a security
interest in the Transferred Assets by the Seller to the Purchaser to secure a debt or other obligation of the Seller. However,
in the event that, notwithstanding the intent of the parties, the Conveyances hereunder shall be characterized as loans and not
as sales and/or contributions, then (i) this Agreement also shall be deemed to be, and hereby is, a security agreement within
the meaning of the UCC and other applicable law and (ii) the Conveyances by the Seller provided for in this Agreement shall
be deemed to be, and the Seller hereby grants to the Purchaser, a security interest in, to and under all of the Seller’s
right, title and interest in, to and under, whether now owned or hereafter acquired, such Transferred Assets and all proceeds
of the foregoing. The Purchaser and its assignees shall have, with respect to such Transferred Assets and other related rights,
in addition to all the other rights and remedies available to the Purchaser and its assignees and under the other Transaction
Documents, all the rights and remedies of a secured party under any applicable UCC.

 

The
Seller and the Purchaser shall, to the extent consistent with this Agreement, take such actions as may be necessary to ensure
that, if this Agreement were deemed to create a security interest in the Transferred Assets to secure a debt or other obligation,
such security interest would be deemed to be a perfected security interest in favor of the Purchaser under applicable law and
will be maintained as such throughout the term of this Agreement. The Seller represents and warrants that the Transferred Assets
are being transferred with the intention of removing them from the Seller’s estate pursuant to Section 541 of the Bankruptcy
Code.

 

    	-5-

    	 

    

 

(d)   On
the date hereof, the Seller agrees to file, at its own expense, a financing statement or statements with respect to the Transferred
Assets Conveyed by the Seller hereunder from time to time (including prior to the date hereof) meeting the requirements of applicable
state law in the jurisdiction of the Seller’s organization to perfect and protect the interests of the Purchaser created
hereby under the UCC against all creditors of, and purchasers from, the Seller, and to deliver a file-stamped copy of such financing
statements or other evidence of such filings to the Purchaser as soon as reasonably practicable after its receipt thereof.

 

(e)    The
Seller agrees that from time to time, at its expense, it will promptly execute and deliver all instruments and documents and take
all actions as may be reasonably necessary or as the Purchaser may reasonably request, in order to perfect or protect the interest
of the Purchaser in the Transferred Assets purchased hereunder or to enable the Purchaser to exercise or enforce any of its rights
hereunder. Without limiting the foregoing, the Seller will, in order to accurately reflect the Conveyances contemplated by this
Agreement, execute and file such financing or continuation statements or amendments thereto or assignments thereof (as permitted
pursuant hereto) or other documents or instruments as may be reasonably requested by the Purchaser. The Seller hereby authorizes
the Purchaser to file and, to the fullest extent permitted by applicable law the Purchaser shall be permitted to file initial
financing statements, continuation statements and amendments thereto and assignments thereof without the Seller’s further
action; provided that the description of collateral contained in such financing statements shall be limited to only Transferred
Assets. Carbon, photographic or other reproduction of this Agreement or any financing statement shall be sufficient as a financing
statement.

 

SECTION 2.2 Indemnification. Without
limiting any other rights which any such Person may have hereunder or under applicable law, the Seller agrees to indemnify on
a net after-tax basis (including, for example, taking into account the deductibility of an applicable underlying damage, loss,
liability or related cost and expense) the Purchaser and its successors, transferees, and assigns and all officers, directors,
shareholders, controlling persons, employees and agents of any of the foregoing (each of the foregoing Persons being individually
called an “Indemnified Party”), forthwith on demand, from and against any and all damages, losses, claims,
liabilities and related costs and expenses, including reasonable attorneys’ fees and disbursements (all of the foregoing
being collectively called “Indemnified Amounts”) awarded against or incurred by any of them arising out of
any breach by the Seller of any of its obligations hereunder or arising as a result of the failure of any representation or warranty
of the Seller herein to be true and correct on the date such representation or warranty was made, excluding, however,
(a) Indemnified Amounts in respect of any Transferred Asset due to such Obligor’s creditworthiness, as applicable, (b) Indemnified
Amounts payable to an Indemnified Party to the extent determined by a court of competent jurisdiction to have resulted from gross
negligence, bad faith or willful misconduct on the part of any Indemnified Party or its agent or subcontractor, (c) except as
otherwise specifically provided herein, non-payment by any Obligor of an amount due and payable with respect to a Transferred
Asset and (d) Indemnified Amounts resulting from the performance or non-performance of the Transferred Assets.

 

    	-6-

    	 

    

 

ARTICLE
III

CONSIDERATION AND PAYMENT; REPORTING

 

SECTION 3.1 Purchase
Price. The purchase price (the “Purchase
Price”) for the Transferred Assets Conveyed on each Purchase Date shall be a dollar amount equal to the fair market
value (as agreed upon between the Seller and the Purchaser at the time of such Conveyance) of such Transferred Assets as of such
date.

 

SECTION 3.2 Payment
of Purchase Price. The Purchase Price shall be paid on the related Purchase Date at the option of the Seller (a) by the
Purchaser making a payment in cash of immediately available funds, (b) by the Seller making a capital contribution to the Purchaser,
or (c) any combination of the foregoing clauses (a) and (b).

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

 

SECTION 4.1 Seller’s
Representations and Warranties. The Seller represents and
warrants to the Purchaser as of the Restatement Date and as of each Purchase Date:

 

(a)    Organization
and Good Standing. The Seller is a Maryland corporation duly formed, validly existing and in good standing under the laws
of its jurisdiction of organization and is duly qualified to do business, and is in good standing, in every jurisdiction in which
the nature of its business and the performance of its obligations hereunder and under the other Transaction Documents to which
it is a party requires it to be so qualified, except where the failure to be so qualified or in good standing would not reasonably
be expected to have a material adverse effect on (i) its ability to perform its obligations under this Agreement, (ii) the validity
or enforceability of the Transferred Assets and the Related Security and (iii) its ability to perform its obligations under the
other Transaction Documents to which it is a party.

 

(b)    Power
and Authority. The Seller has the power and authority to own, pledge, mortgage, operate and convey the Transferred Assets,
to conduct its business as now, or proposed to be, conducted and to execute and deliver this Agreement and the Transaction Documents
to which it is a party and to perform the transactions contemplated hereby and thereby.

 

(c)    Authorization;
Contravention. The execution, delivery and performance by the Seller of this Agreement, each other Transaction Document to
which it is a party and all other agreements, instruments and documents which may be delivered by it pursuant hereto or thereto
and the transactions contemplated hereby and thereby (i) have been duly authorized by all necessary action on the part of
the Seller, (ii) do not contravene or cause the Seller to be in default in any material respect under (A) its certificate
of formation, (B) any contractual restriction with respect to any indebtedness of the Seller or contained in any indenture,
loan or credit agreement, lease, mortgage, security agreement, bond, note or other agreement or instrument binding on or affecting
it or its property, or (C) any law, rule, regulation, order, license, requirement, writ, judgment, award, injunction or decree
applicable to, binding on or affecting it or any of its property and (iii) do not result in or require the creation of any
Lien upon or with respect to any of its properties (other than Liens created pursuant to this Agreement).

 

    	-7-

    	 

    

 

(d)    Execution
and Delivery. This Agreement and each other Transaction Document to which the Seller is a party have been duly executed and
delivered by the Seller.

 

(e)    Governmental
Authorization. No approval, consent of, notice to, filing with or permits, licenses, qualifications or other action by any
Official Body having jurisdiction over it or its properties is required or necessary (i) for the conduct of the Seller’s
business as currently conducted, for the ownership, use, operation or maintenance of its properties and for the due execution,
delivery and performance by the Seller of this Agreement or any of the Transaction Documents to which it is a party or (ii) to
ensure the legality, validity, or enforceability of this Agreement in any jurisdiction in which the Seller does business, in each
case other than (A) consents, notices, filings and other actions which have been obtained or made (or will be obtained or made
substantially simultaneously with the Restatement Date), and continuation statements and renewals in respect thereof and (B) where
the lack of such consent, notice, filing or other action would not have a material adverse effect on its ability to perform its
obligations hereunder and under the Transaction Documents to which it is a party.

 

(f)    Legality;
Validity; Enforceability. Assuming due authorization, execution and delivery by each other party hereto and thereto, this
Agreement and each other Transaction Document to which it is a party is the legal, valid and binding obligation of the Seller
enforceable against the Seller in accordance with its respective terms, except as such enforceability may be limited by (A) bankruptcy,
insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights generally, (B) equitable
limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding
in equity or at law and (C) implied covenants of good faith and fair dealing.

 

(g)    No
Litigation. There are no proceedings or investigations pending or, to its knowledge, threatened against the Seller, before
any court or Official Body having jurisdiction over it or its properties (A) asserting the invalidity of this Agreement or
any of the other Transaction Documents, (B) seeking to prevent the consummation of any of the transactions contemplated by
this Agreement or any of the other Transaction Documents, (C) seeking any determination or ruling that might materially and
adversely affect the performance by the Purchaser of its obligations under, or the validity or enforceability of, this Agreement
or any of the other Transaction Documents, (D) seeking any determination or ruling that would reasonably be expected to have a
material adverse effect on any of the Transferred Assets or (E) seeking to impose any excise, franchise, transfer or similar tax
upon the conveyance of the Transferred Assets hereunder.

 

(h)    Legal
Compliance. The Seller has complied and will comply in all material respects with all Applicable Laws, judgments, agreements
with governmental authorities, decrees and orders with respect to its business and properties and the Transferred Assets.

 

    	-8-

    	 

    

 

(i)    Taxes.
The Seller has timely filed all federal and other material Tax returns (foreign, federal, state, local and otherwise) required
to be filed by it relating to the Transferred Assets and has paid all federal and other material Taxes due and payable by it relating
to the Transferred Assets (other than any amount the validity of which is currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the Seller). It is not
liable for taxes with respect to the Transferred Assets payable by any other Person. No Tax lien or similar Adverse Claim has
been filed, and no claim has been filed or is being asserted, with respect to any Tax relating to the Transferred Assets. Any
taxes, fees and other governmental charges payable by the Seller in connection with the transactions contemplated by this Agreement
and the execution and delivery of this Agreement have been paid or shall have been paid if and when due.

 

(j)    Place
of Business. The principal place of business and chief executive office of the Seller, and the offices where the Seller keeps
all its Records, are located at its address specified in Section 8.3, or such other locations notified to the Purchaser
in accordance with this Agreement in jurisdictions where all action required by the terms of this Agreement has been taken and
completed. There are currently no, and during the past four months (or such shorter time as the Seller has been in existence)
there have not been, any other locations where the Seller is located (as that term is used in the UCC of the jurisdiction where
such principal place of business is located).

 

(k)    Ownership;
Security Interest. In the event that, notwithstanding the intent of the parties, the Conveyances hereunder shall be characterized
as loans and not as sales and/or contributions, then this Agreement creates a valid and continuing Lien on the Transferred Assets
in favor of the Purchaser, which security interest is validly perfected under Article 9 of the UCC (to the extent such security
interest may be perfected under such article), and is enforceable as such against creditors of and purchasers from the Seller;
the Transferred Assets are comprised of Instruments, Security Entitlements, General Intangibles, Certificated Securities, Uncertificated
Securities, Securities Accounts, Investment Property and Proceeds and such other categories of collateral under the applicable
UCC as to which the Seller has complied with its obligations as set forth herein; the Seller has received all consents and approvals
required by the terms of any Transferred Asset to the sale and granting of a security interest in the Transferred Assets hereunder
to the Purchaser; the Seller has taken all necessary steps to file or authorize the filing of all appropriate financing statements
in the proper filing office in the appropriate jurisdictions under Applicable Law in order to perfect the security interest in
that portion of the Transferred Assets in which a security interest may be perfected by filing pursuant to Article 9 of the UCC
as in effect in Delaware; all original executed copies of each underlying promissory note constituting or evidencing any Transferred
Asset have been delivered to the Purchaser or its designee; none of the underlying promissory notes that constitute or evidence
any Transferred Assets has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Purchaser; with respect to a Transferred Asset that constitutes a Certificated Security, such Certificated
Security has been delivered to the Purchaser or its designee and, if in registered form, has been specially Indorsed (within the
meaning of the UCC) to the Purchaser or in blank by an effective Indorsement or has been registered in the name of the Purchaser
upon original issue or registration of transfer by the Seller of such Certificated Security; and in the case of an Uncertificated
Security, by causing the Purchaser or its designee to become the registered owner of such Uncertificated Security.

 

    	-9-

    	 

    

 

(l)    Fair
Consideration; No Avoidance for Transferred Asset Payments. With respect to each Transferred Asset sold hereunder, the Seller
sold such Transferred Asset to the Purchaser in exchange for payment, made in accordance with the provisions of this Agreement,
in an amount which constitutes fair consideration and reasonably equivalent value. Each such Conveyance referred to in the preceding
sentence shall not have been made for or on account of an antecedent debt owed by the Seller to the Purchaser. In addition, no
such Conveyance shall have been made with the intent to hinder or delay payment to or defraud any creditor of the Seller.

 

(m)    Transferred
Assets. As of each Purchase Date, Schedule A is an accurate and complete listing of all the Transferred Assets and
other Transferred Assets hereunder as of such Purchase Date.

 

(n)    Adequate
Capitalization; No Insolvency. The Seller is adequately capitalized and will not become insolvent after giving effect to the
transactions contemplated by this Agreement and the Transaction Documents. The Seller is adequately capitalized for its business
as proposed to be conducted in the foreseeable future and does not expect the commencement of any insolvency, bankruptcy or similar
proceedings or the appointment of a receiver, liquidator or similar official in respect of its assets. The Seller executed and
delivered each of the Transaction Documents to which it is a party for fair consideration and without the intent to hinder, delay
or defraud any of its creditors or any other Person.

 

(o)    Good
Title to Conveyed Transferred Assets.

 

i.    In
respect of each Initial Conveyance, the Seller, as of the date of such Initial Conveyance, has not assigned, pledged, or otherwise
conveyed or encumbered any interest in each Transferred Asset to any other person, which assignment, pledge, conveyance or encumbrance
remains effective as of the applicable Purchase Date. Immediately prior to the purchase of any of the Transferred Asset by the
Purchaser from the Seller, such Transferred Asset is free and clear of any lien, encumbrance or impediment to transfer created
by Seller (including any Adverse Claim), and the Seller is the sole record and beneficial owner of and has good and marketable
title to and the right to sell and transfer such Transferred Asset to the Purchaser and, upon the Conveyance of such Transferred
Asset to the Purchaser, the Purchaser shall be the sole owner of such Transferred Asset free of any Adverse Claim created by the
Seller.

 

ii.    In
respect of each Subsequent Conveyance, the Seller has not assigned, pledged, or otherwise conveyed or encumbered any interest
in the Transferred Assets being Conveyed to any other person, which assignment, pledge, conveyance or encumbrance remains effective
as of the applicable Purchase Date. Immediately prior to the purchase of any of the Transferred Asset by the Purchaser from the
Seller, such Transferred Asset is free and clear of any lien, encumbrance or impediment to transfer created by Seller (including
any Adverse Claim), and the Seller is the sole record and beneficial owner of and has good and marketable title to and the right
to sell and transfer such Transferred Asset to the Purchaser and, upon the Conveyance of such Transferred Asset to the Purchaser,
the Purchaser shall be the sole owner of such Transferred Asset free of any Adverse Claim created by the Seller.

 

    	-10-

    	 

    

 

(p)   True
and Complete Information. All information heretofore or hereafter furnished by or on behalf of the Seller in writing to the
Purchaser in connection with this Agreement, the other Transaction Documents, the Transferred Assets, or any transaction contemplated
hereby is and will be (when taken as a whole) true, correct and complete in all material respects.

 

(q)   Reserved.

 

(r)    Payment
in Full. On the applicable Purchase Date for each Transferred Asset, the Seller had no actual knowledge of any fact which
leads it to expect that any payments on the applicable Transferred Asset will not be paid in full when due or to expect any other
material adverse effect on (A) the performance by the Seller of its obligations under this Agreement or any of the Transaction
Documents to which it is a party, (B) the validity or enforceability of this Agreement or any of the Transaction Documents to
which it is a party, or (C) the Transferred Assets or the interests of the Seller therein.

 

(s)    No
Brokers or Finders. No broker or finder acting on behalf of the Seller was employed or utilized in connection with this Agreement
or the other Transaction Documents or the transactions contemplated hereby or thereby and the Seller has no obligation to any
Person in respect of any finder’s or brokerage fees in connection therewith.

 

(t)    Reserved.

 

(u)    Special
Purpose Entity. The Purchaser is an entity with assets and liabilities separate and distinct from those of the Seller and
any Affiliates thereof. Therefore, from and after the date of execution and delivery of this Agreement, the Seller shall take
all reasonable steps, including all steps that the Purchaser may from time to time reasonably request, to maintain the Purchaser’s
identity as a legal entity that is separate from the Seller and from each other Affiliate of the Seller, and to make it manifest
to third parties that the Purchaser is an entity with assets and liabilities distinct from those of the Seller and each other
Affiliate thereof and not just a division of the Seller or any such other Affiliate.

 

(v)    Reserved.

 

(w)    Set–Off,
etc. At the time of Conveyance of a Transferred Asset and to the knowledge of the Seller after reasonable inquiry as of the
applicable Purchase Date, such Transferred Asset has not been compromised, adjusted, extended, satisfied, subordinated, rescinded,
set–off or modified by the Seller or by the Obligor thereof, and at such time such Transferred Asset is not subject to compromise,
adjustment, extension, satisfaction, subordination, rescission, set–off, counterclaim, defense, abatement, suspension, deferment,
deduction, reduction, termination or modification, whether arising out of transactions concerning such Transferred Asset or otherwise,
by the Seller or by the Obligor with respect thereto, except, in each case, for amendments, extensions and modifications, if any,
to such Transferred Asset otherwise permitted under the Transaction Documents.

 

(x)    No
Fraud. Each Transferred Asset was originated or acquired without any fraud or material misrepresentation by the Seller or,
to the Seller’s knowledge, on the part of the related Obligor.

 

    	-11-

    	 

    

 

  

SECTION 4.2 Reaffirmation
of Representations and Warranties by the Seller. On the Restatement Date and on
each Purchase Date, the Seller, by accepting the proceeds of such Conveyance, shall be deemed to have certified that all representations
and warranties described in Section 4.1 are true and correct on and as of such day as though made on and as of such
day (or, if such representation or warranty is limited to a specific date, such specific date). The representations and warranties
set forth in Section 4.1 shall survive (i) the Conveyance of the Transferred Assets to the Purchaser and (ii) the
termination of the rights and obligations of the Purchaser and the Seller under this Agreement. Upon discovery by an officer of
the Purchaser or the Seller of a breach of any of the foregoing representations and warranties in any material respect, the party
discovering such breach shall give prompt written notice to the other.

 

ARTICLE
V

COVENANTS OF THE SELLER

 

SECTION 5.1 Covenants
of the Seller. The Seller hereby covenants and agrees with the Purchaser that, from
the date hereof, and until all amounts owed by the Seller pursuant to this Agreement have been paid in full (other than as expressly
survive the termination of this Agreement), unless the Purchaser otherwise consents in writing:

 

(a)    Compliance
with Agreements and Applicable Laws. The Seller shall perform each of its obligations under this Agreement and the other Transaction
Documents to which it is a party and comply with all Applicable Laws, including those applicable to the Transferred Assets and
all proceeds thereof, except to the extent that the failure to so comply would not reasonably be expected to have a material adverse
effect on (i) its ability to perform its obligations under the Transaction Documents to which it is a party, (ii) its assets,
operations, properties, financial condition, or business or (iii) the validity or enforceability of this Agreement or any of the
other Transaction Documents.

 

(b)    Maintenance
of Existence and Conduct of Business. The Seller shall: (i) do or cause to be done all things necessary to (A) preserve
and keep in full force and effect its existence as a Maryland corporation and maintain its rights and franchises in its jurisdiction
of formation and (B) qualify and remain qualified as a foreign corporation in good standing and preserve its rights and franchises
in each jurisdiction in which the failure to so qualify and remain qualified and preserve its rights and franchises would reasonably
be expected to have a material adverse effect on its assets, operations, properties, financial condition, or business; (ii) continue
to conduct its business substantially as now conducted or as otherwise permitted hereunder and under its organizational documents;
and (iii) at all times maintain, preserve and protect all of its licenses, permits, charters and registrations in each case
except where the failure to maintain such liens, permits, charters and registrations would not reasonably be expected to have
a material adverse effect on its assets, operations, properties, financial condition, or business.

 

(c)    Cash
Management Systems; Deposit of Collections. The Seller shall transfer, or cause to be transferred, all Collections received
by the Seller to the appropriate account of the Purchaser by the close of business on the Business Day following the date such
Collections are received.

 

    	-12-

    	 

    

 

(d)    Books
and Records. The Seller shall keep proper books of record and account in which full and correct entries shall be made of all
transactions with the Purchaser and the assets and business of the Seller related to its obligations under this Agreement or any
Transferred Assets or assets proposed to be transferred in accordance with GAAP, maintain and implement administrative and operating
procedures necessary to fulfill its obligations hereunder; and keep and maintain all documents, books, records and other information
necessary or reasonably advisable and relating to the Transferred Assets prior to their Conveyance hereunder for the collection
of all Transferred Assets.

 

(e)    Reserved.

 

(f)    Taxes.
The Seller will file on a timely basis all federal and other material Tax returns required to be filed and will pay all federal
and other material Taxes due and payable by it (other than any amount the validity of which is contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP are provided on the books of the Seller).

 

(g)    ERISA.
The Seller shall not, and shall not cause or permit any of its Affiliates to, cause or permit to occur an event that results in
the imposition of a Lien on its interest, if any, in any Transferred Asset under Section 412 of the IRC or Section 303(K) or 4068
of ERISA.

 

(h)    Liens.
The Seller shall not create, incur, assume or permit to exist any Lien on or with respect to any of its rights under any of the
Transaction Documents (other than the Lien covering this Agreement and existing on the Restatement Date) or on or with respect
to any of its rights in the Transferred Assets, in each case other than Permitted Liens. For the avoidance of doubt, this Section
5.1(i) shall not apply to any property retained by the Seller and not Conveyed or purported to be Conveyed hereunder.

 

(i)     Change
of Name; Etc. The Seller shall not change its name, identity or corporate structure in any manner that would make any financing
statement or continuation statement filed by the Seller in accordance with Section 2.1(c) seriously misleading or
change its jurisdiction of organization, unless the Seller shall have given the Purchaser at least 10 days prior written notice
thereof, and shall promptly file appropriate amendments to all previously filed financing statements and continuation statements.

 

(j)    Sale
Characterization. The Seller shall not make statements or disclosures, or treat the transactions contemplated by this Agreement
(other than for tax or accounting purposes) in any manner other than as a true sale, contribution or absolute assignment of the
title to and sole record and beneficial ownership interest of the Transferred Assets Conveyed or purported to be Conveyed hereunder;
provided that the Seller may consolidate the Purchaser and/or its properties and other assets for accounting purposes in
accordance with GAAP.

 

(k)    Commingling.
The Seller shall not, and shall not permit any of its Affiliates to, deposit or permit the deposit of any funds that do not constitute
Collections or other proceeds of any Transferred Assets into any account of the Purchaser to which Collections are deposited.

 

 

    	-13-

    	 

    

 

(l)     Non-consolidation
Opinion. The Seller shall not take any action contrary to any assumption as to Seller set forth in any legal opinion delivered
with respect to bankruptcy non-consolidation matters in connection with the Transaction Documents. 

 

ARTICLE
VI

WARRANTY ASSETS

 

SECTION 6.1
Warranty Transferred Assets. The Seller agrees that, with respect to any Transferred Asset, in the event of a breach
of any representation or warranty or covenant applicable to a Transferred Asset set forth in Article IV or Article V
(each such Transferred Asset, a “Warranty Transferred Asset”), no later than 30 days after the earlier
of (x) knowledge of such breach on the part of the Seller and (y) receipt by the Seller of written notice thereof given by the
Purchaser of such breach, the Seller shall either pay to the appropriate account of the Purchaser in immediately available funds
the Repurchase Amount with respect to the Warranty Transferred Asset(s) to which such breach relates or substitute for such Warranty
Transferred Asset(s) one or more Transferred Asset(s) with an aggregate fair market value at least equal to the Repurchase Amount
of the Warranty Transferred Asset(s) being replaced; provided, that no such repayment
or substitution shall be required to be made with respect to any Warranty Transferred Asset (and such Transferred Asset shall
cease to be a Warranty Transferred Asset) if, on or before the expiration of such 30 day period the representations and warranties
in Article IV and the covenants in Article V with respect to such Warranty Transferred Asset shall be made true
and correct in all material respects with respect to such Warranty Transferred Asset as if such Warranty Transferred Asset had
been Conveyed to the Purchaser on such day, as applicable.

 

ARTICLE
VII

CONDITIONS PRECEDENT

 

SECTION 7.1
Conditions Precedent. The obligations of the Purchaser to pay the Purchase Price for the Transferred Assets sold on
or prior to the Restatement Date and any Purchase Date shall be subject to the satisfaction of the following conditions:

 

(a)    All
representations and warranties of the Seller contained in this Agreement shall be true and correct in all material respects on
such Purchase Date;

 

(b)    All
information concerning the Transferred Assets provided to the Purchaser shall be true and correct, when taken as a whole, in all
material respects as of such Purchase Date;

 

(c)    The
Seller shall have performed in all material respects all other obligations required to be performed by the provisions of this
Agreement and the other Transaction Documents to which it is a party;

 

    	-14-

    	 

    

 

(d)    The
Seller shall have either filed or caused to be filed the financing statement(s) required to be filed pursuant to Section 2.1(c);
and

 

(e)    All
corporate and legal proceedings, and all instruments in connection with the transactions contemplated by this Agreement and the
other Transaction Documents shall be reasonably satisfactory in form and substance to the Purchaser, and the Purchaser shall have
received from the Seller copies of all documents (including records of corporate proceedings) relevant to the transactions herein
contemplated as the Purchaser may reasonably have requested.

 

ARTICLE
VIII

MISCELLANEOUS PROVISIONS

 

SECTION 8.1
Amendments, Etc. This Agreement and the rights and obligations of the parties hereunder may not be amended, supplemented,
waived or otherwise modified except in an instrument in writing signed by the Purchaser and the Seller with, so long as the Notes
issued under the Indenture are Outstanding, the prior written consent of the holders of a Majority of the Noteholders (as defined
in the Indenture). Any Conveyance or reconveyance executed in accordance with the provisions hereof shall not be considered an
amendment or modification to this Agreement.

 

SECTION
8.2Governing Law: Submission to Jurisdiction.

 

(a)    THIS
AGREEMENT AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

 

(b)    Each
party hereto hereby irrevocably submits to the non-exclusive jurisdiction of any New York State or Federal court sitting in New
York City in any action or proceeding arising out of or relating to the Transaction Documents, and each party hereto hereby irrevocably
agrees that all claims in respect of such action or proceeding may be heard and determined in such New York State court or, to
the extent permitted by law, in such Federal court. The parties hereto hereby irrevocably waive, to the fullest extent they may
effectively do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties hereto agree
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit
on the judgment or in any other manner provided by law.

 

SECTION
8.3Notices. All
notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including facsimile
communication) and shall be personally delivered or sent by certified mail, electronic mail, postage prepaid, or by facsimile,
to the intended party at the address or facsimile number of such party set forth below:

 

    	-15-

    	 

    

 

	 	(a)	in
the case of the Purchaser:
	 	 	 
	 	 	Germantown
                                         Funding LLC
	 	 	c/o FS Investment Corporation
                                         III
	 	 	201
Rouse Boulevard
	 	 	Philadelphia,
PA 19112
	 	 	Attention:
Gerald F. Stahlecker, Executive Vice President
	 	 	Telephone:
(215) 495-1169
	 	 	Facsimile:
(215) 222-4649
	 	 	 
	 	(b)	in
the case of the Seller:
	 	 	 
	 	 	FS
Investment Corporation III
	 	 	201 Rouse Boulevard
	 	 	Philadelphia,
PA 19112
	 	 	Attention:
Gerald F. Stahlecker, Executive Vice President
	 	 	Telephone:
(215) 495-1169
	 	 	Facsimile:
(215) 222-4649

 

All
such notices and communications shall be effective, (a) if personally delivered, when received, (b) if sent by certified
mail, three Business Days after having been deposited in the mail, postage prepaid, (c) if sent by two-day mail, two (2) Business
Days after having been deposited in the mail, postage prepaid, (d) if sent by overnight courier, one (1) Business Day after
having been given to such courier, and (e) if transmitted by facsimile, when sent, receipt confirmed by telephone or electronic
means.

 

SECTION
8.4 Severability of Provisions. If
any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid,
then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions,
or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement.

 

SECTION
8.5 Reserved; Further Assurances. The Purchaser
and the Seller each agree that at any time and from time to time, it shall promptly execute and deliver all further instruments
and documents, and take all reasonable further action, that is necessary or desirable to perfect and protect the Conveyances and
security interests granted or purported to be granted by this Agreement.

 

(b)    The
Purchaser and the Seller agree to do and perform, from time to time, any and all acts and to execute any and all further instruments
reasonably requested by the other party more fully to effect the purposes of this Agreement and the other Transaction Documents,
including the execution of any financing statements or continuation statements or equivalent documents relating to the Transferred
Assets for filing under the provisions of the UCC or other laws of any applicable jurisdiction.

 

SECTION
8.6 No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of the Purchaser
or the Seller, any right, remedy, power or privilege hereunder, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exhaustive of any rights, remedies, powers and privilege provided by law.

 

    	-16-

    	 

    

 

SECTION 8.7 Counterparts. This
Agreement may be executed in two or more counterparts including telecopy transmission thereof (and by different parties on separate
counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument.

 

SECTION 8.8 Binding
Effect; Third-Party Beneficiaries. This Agreement will
inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. To the extent
that any Transferred Asset requires that any transferee of an interest therein must execute an assignment and assumption agreement
whereby such transferee assumes all of the obligations of the holder thereof with respect to such Transferred Asset or portion
thereof being transferred, and such an agreement has not already been executed and delivered, the parties hereto intend that this
Agreement shall constitute such an assignment and assumption agreement (within the meaning of such Transferred Asset) with respect
to the transfer of such Transferred Asset to the Purchaser and the Purchaser may enter into an omnibus assignment and assumption
agreement to evidence such assignment and assumption pursuant to this Agreement. The Seller and Purchaser acknowledge that the
Purchaser has, pursuant to the Indenture, pledged and granted to the Trustee a security interest in and lien on all of the Purchaser’s
rights hereunder to secure the Notes and the other Secured Obligations (as defined in the Indenture), and the Seller and Purchaser
agree that the Trustee and the holders from time to time of the Notes are intended third party beneficiaries of this Agreement
entitled to enforce the same on behalf of the Purchaser. Notwithstanding the foregoing or anything to the contrary in this Agreement,
after the date hereof, the Seller may merge with another business development company sponsored by Franklin Square Holdings, L.P.
or may be subject to other fundamental change transactions the result of which effectively combines the ownership and/or assets
of FS Investment Corporation III and any business development company sponsored by Franklin Square Holdings, L.P., or merges or
consolidates their respective collateral advisors or sub-advisors. Notwithstanding anything to the contrary in this agreement,
the parties hereto agree that such merger or fundamental change is permitted hereunder without the consent of the other party
or the Majority of Noteholders.

 

SECTION 8.9 Merger
and Integration. Except as specifically stated otherwise
herein, this Agreement sets forth the entire understanding of the parties relating to the subject matter hereof, and all prior
understandings, written or oral, are superseded by this Agreement.

 

SECTION 8.10 Headings. The
headings herein are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision
hereof.

  

    	-17-

    	 

    

 

SECTION 8.11
Non-Petition; Limited Recourse. The
Seller hereby agrees that it will not institute against, or join any other Person in instituting against, the Purchaser any bankruptcy
or insolvency Proceedings so long as there shall not have elapsed one year and one day (or such longer preference period as shall
then be in effect) from the date on which all amounts owed by the Seller pursuant to this Agreement have been paid in full. In
addition, the Seller shall have no recourse for any amounts payable or any other obligations arising under this Agreement against
any officer, member, director, employee, partner, Affiliate or security holder of the Purchaser or any of its successors or assigns.

 

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

    	-18-

    	 

    

 

IN
WITNESS WHEREOF, the Purchaser and the Seller each have caused this Sale and Contribution Agreement to be duly executed by their
respective officers as of the day and year first above written.

 

 

	 	FS INVESTMENT CORPORATION III, as Seller
	 	 	 
	 	By:	/s/ Gerald F. Stahlecker 
	 	Name:	Gerald F. Stahlecker
	 	Title:	Executive Vice President
	 	 	 
	 	GERMANTOWN FUNDING LLC, as Purchaser
	 	 	 
	 	By:	/s/ Gerald F. Stahlecker 
	 	Name:	Gerald F. Stahlecker
	 	Title:	Executive Vice President

 

    	 

    	 

    

 

Schedule
A

 

SCHEDULE
OF TRANSFERRED ASSETS

 

    	 

    	 

    

 

Schedule
B

 

FORM
OF PURCHASE NOTICE

 

[Date]

 

		
	To:	Germantown
                                         Funding LLC
	 	c/o FS Investment
                                         Corporation
	 	201
Rouse Boulevard
	 	Philadelphia,
PA 19112
	 	Attention:
Gerald F. Stahlecker, Executive Vice President
	 	Telephone:
(215) 495-1169
	 	Facsimile:
(215) 222-4649
	 	
	Re:	Purchase
                                         Notice for Conveyance
	 	Date of ______________, 20__

 

Ladies and
Gentlemen:

 

This
Purchase Notice is delivered to you pursuant to Section 2.1(b) of the Amended and Restated Sale and Contribution Agreement,
dated as of June 18, 2015 (together with all amendments, if any, from time to time made thereto, the “Sale Agreement”),
between GERMANTOWN FUNDING LLC, as purchaser (the “Purchaser”), and FS INVESTMENT CORPORATION III, as seller
(the “Seller”). Unless otherwise defined herein or the context otherwise requires, capitalized terms used herein
have the meanings provided in the Sale Agreement.

 

In
accordance with Section 2.1(b) of the Sale Agreement, the Seller hereby offers to Convey to the Purchaser on the above-referenced
Purchase Date pursuant to the terms and conditions of the Sale Agreement the Transferred Assets and Transferred Asset Payments
listed on Schedule I hereto, together with the Related Security and all proceeds of the foregoing.

 

To
the extent applicable, please wire the Purchase Price to the Seller pursuant to the wiring instructions included at the end of
this letter.

 

The
Seller represents that the conditions described in Section 7.1 of the Sale Agreement have been satisfied with respect
to such Conveyance.

 

The
Seller agrees that if prior to the Purchase Date any matter certified to herein by it will not be true and correct at such time
as if then made, it will promptly so notify the Purchaser. Except to the extent, if any, that prior to the Purchase Date the Purchaser
shall receive written notice to the contrary from the Seller, each matter certified to herein shall be deemed once again to be
certified as true and correct at the Purchase Date as if then made.

 

The
Seller has caused this Purchase Notice to be executed and delivered, and the certification and warranties contained herein to
be made, by its duly authorized officer this ___ day of ________, 20__.

 

 

	 	Very truly yours,
	 	 	 
	 	FS INVESTMENT CORPORATION III
	 	 
	 	By:	
	 	Name:	
	 	Title:	

 

 

    	 

    	 

    

 

Wire
Instructions

Bank: ABA:

Account Name:

Account Number:

For further credit to account:

 

    	 

    	 

    

 

Schedule
I

 

SUPPLEMENT
TO SCHEDULE OF TRANSFERRED ASSETS

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