Document:

EX-4.11

 Exhibit 4.11 

VERU INC. 
 and 

[                      
                          ] 

as Trustee 
 Guaranteed
to the extent set forth therein by the Guarantors named herein. 
 INDENTURE 

dated as of 
  

 

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 Article 1 DEFINITIONS AND INCORPORATION BY REFERENCE
	  	 	1	 
			
	 Section 1.01
	  	Certain Definitions	  	 	1	 
			
	 Section 1.02
	  	Other Definitions	  	 	3	 
			
	 Section 1.03
	  	Incorporation by Reference of Trust Indenture Act	  	 	4	 
			
	 Section 1.04
	  	Rules of Construction	  	 	4	 
		
	 Article 2 THE SECURITIES
	  	 	4	 
			
	 Section 2.01
	  	Unlimited In Amount, Issuable In Series, Form, and Dating	  	 	4	 
			
	 Section 2.02
	  	Execution and Authentication	  	 	7	 
			
	 Section 2.03
	  	Registrar and Paying Agent.	  	 	7	 
			
	 Section 2.04
	  	Paying Agent to Hold Money in Trust	  	 	8	 
			
	 Section 2.05
	  	Securityholder Lists	  	 	8	 
			
	 Section 2.06
	  	Transfer and Exchange	  	 	8	 
			
	 Section 2.07
	  	Replacement Securities	  	 	8	 
			
	 Section 2.08
	  	Outstanding Securities	  	 	9	 
			
	 Section 2.09
	  	Temporary Securities	  	 	9	 
			
	 Section 2.10
	  	Cancellation	  	 	9	 
			
	 Section 2.11
	  	Defaulted Interest	  	 	9	 
			
	 Section 2.12
	  	Special Record Dates	  	 	10	 
			
	 Section 2.13
	  	Global Securities	  	 	10	 
			
	 Section 2.14
	  	CUSIP Numbers	  	 	11	 
		
	 Article 3 REDEMPTION
	  	 	11	 
			
	 Section 3.01
	  	Notices to Trustee	  	 	11	 
			
	 Section 3.02
	  	Selection of Securities to Be Redeemed	  	 	11	 
			
	 Section 3.03
	  	Notice of Redemption	  	 	12	 
			
	 Section 3.04
	  	Effect of Notice of Redemption	  	 	13	 
			
	 Section 3.05
	  	Deposit of Redemption Price	  	 	13	 
			
	 Section 3.06
	  	Securities Redeemed or Purchased in Part	  	 	13	 
		
	 Article 4 COVENANTS
	  	 	13	 
			
	 Section 4.01
	  	Payment of Securities	  	 	13	 
			
	 Section 4.02
	  	Maintenance of Office or Agency	  	 	13	 
			
	 Section 4.03
	  	Reports	  	 	14	 
			
	 Section 4.04
	  	Compliance Certificate	  	 	14	 
			
	 Section 4.05
	  	Taxes	  	 	15	 
			
	 Section 4.06
	  	Stay, Extension, and Usury Laws	  	 	15	 
			
	 Section 4.07
	  	Calculation of Original Issue Discount	  	 	15	 

  
 i 

							
		
	 Article 5 SUCCESSORS
	  	 	15	 
			
	 Section 5.01
	  	When Company May Merge, etc.	  	 	15	 
			
	 Section 5.02
	  	Successor Person Substituted	  	 	15	 
		
	 Article 6 DEFAULTS AND REMEDIES
	  	 	16	 
			
	 Section 6.01
	  	Events of Default	  	 	16	 
			
	 Section 6.02
	  	Acceleration	  	 	17	 
			
	 Section 6.03
	  	Other Remedies	  	 	17	 
			
	 Section 6.04
	  	Waiver of Past Defaults	  	 	17	 
			
	 Section 6.05
	  	Control by Majority	  	 	18	 
			
	 Section 6.06
	  	Limitation on Suits	  	 	18	 
			
	 Section 6.07
	  	Rights of Holders to Receive Payment	  	 	18	 
			
	 Section 6.08
	  	Collection Suit by Trustee	  	 	18	 
			
	 Section 6.09
	  	Trustee May File Proofs of Claim	  	 	19	 
			
	 Section 6.10
	  	Priorities	  	 	19	 
			
	 Section 6.11
	  	Undertaking for Costs	  	 	19	 
		
	 Article 7 TRUSTEE
	  	 	19	 
			
	 Section 7.01
	  	Duties of Trustee	  	 	19	 
			
	 Section 7.02
	  	Rights of Trustee	  	 	20	 
			
	 Section 7.03
	  	Individual Rights of Trustee	  	 	21	 
			
	 Section 7.04
	  	Trustee’s Disclaimer	  	 	21	 
			
	 Section 7.05
	  	Notice of Defaults	  	 	21	 
			
	 Section 7.06
	  	Reports by Trustee to Holders	  	 	21	 
			
	 Section 7.07
	  	Compensation and Indemnity	  	 	22	 
			
	 Section 7.08
	  	Replacement of Trustee	  	 	22	 
			
	 Section 7.09
	  	Successor Trustee by Merger, etc.	  	 	23	 
			
	 Section 7.10
	  	Eligibility; Disqualification	  	 	23	 
			
	 Section 7.11
	  	Preferential Collection of Claims Against Company	  	 	23	 
		
	 Article 8 SATISFACTION AND DISCHARGE; DEFEASANCE
	  	 	24	 
			
	 Section 8.01
	  	Satisfaction and Discharge	  	 	24	 
			
	 Section 8.02
	  	Option to Effect Legal Defeasance or Covenant Defeasance	  	 	24	 
			
	 Section 8.03
	  	Legal Defeasance and Discharge	  	 	25	 
			
	 Section 8.04
	  	Covenant Defeasance	  	 	25	 
			
	 Section 8.05
	  	Conditions to Legal or Covenant Defeasance	  	 	25	 
			
	 Section 8.06
	  	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions	  	 	26	 
			
	 Section 8.07
	  	Repayment to Company	  	 	27	 
			
	 Section 8.08
	  	Reinstatement	  	 	27	 
		
	 Article 9 SUPPLEMENTS, AMENDMENTS, AND WAIVERS
	  	 	27	 
			
	 Section 9.01
	  	Without Consent of Holders	  	 	27	 
			
	 Section 9.02
	  	With Consent of Holders	  	 	28	 

  
 ii 

							
			
	 Section 9.03
	  	Revocation and Effect of Consents	  	 	29	 
			
	 Section 9.04
	  	Notation on or Exchange of Securities	  	 	29	 
			
	 Section 9.05
	  	Trustee to Sign Amendments, etc.	  	 	30	 
		
	 Article 10 GUARANTEES
	  	 	30	 
			
	 Section 10.01
	  	Guarantee	  	 	30	 
		
	 Article 11 MISCELLANEOUS
	  	 	30	 
			
	 Section 11.01
	  	Indenture Subject to Trust Indenture Act	  	 	30	 
			
	 Section 11.02
	  	Notices	  	 	30	 
			
	 Section 11.03
	  	Communication By Holders With Other Holders	  	 	31	 
			
	 Section 11.04
	  	Certificate and Opinion as to Conditions Precedent	  	 	31	 
			
	 Section 11.05
	  	Statements Required in Certificate or Opinion	  	 	31	 
			
	 Section 11.06
	  	Rules by Trustee and Agents	  	 	32	 
			
	 Section 11.07
	  	Legal Holidays	  	 	32	 
			
	 Section 11.08
	  	No Recourse Against Others	  	 	32	 
			
	 Section 11.09
	  	Counterparts	  	 	32	 
			
	 Section 11.10
	  	Governing Law	  	 	32	 
			
	 Section 11.11
	  	Submission to Jurisdiction; Service of Process; Waiver of Jury Trial	  	 	32	 
			
	 Section 11.12
	  	Severability	  	 	33	 
			
	 Section 11.13
	  	Effect of Headings, Table of Contents, etc.	  	 	33	 
			
	 Section 11.14
	  	Successors and Assigns	  	 	33	 
			
	 Section 11.15
	  	No Interpretation of Other Agreements	  	 	33	 

  
 iii 

 CROSS-REFERENCE TABLE* 

 

			
	 Trust Indenture

Act Section
	  	 Indenture Section

	 310(a)(1)
	  	7.10
	 (a)(2)
	  	7.10
	 (a)(3)
	  	N.A.
	 (a)(4)
	  	N.A.
	 (a)(5)
	  	7.10
	 (b)
	  	7.03, 7.08; 7.10
	 (c)
	  	N.A.
	 311(a)
	  	7.11
	 (b)
	  	7.11
	 (c)
	  	N.A.
	 312(a)
	  	2.05
	 (b)
	  	11.03
	 (c)
	  	11.03
	 313(a)
	  	7.06
	 (b)(1)
	  	N.A.
	 (b)(2)
	  	7.06
	 (c)
	  	7.06; 11.02
	 (d)
	  	7.06
	 314(a)
	  	4.03; 11.05
	 (b)
	  	N.A.
	 (c)(1)
	  	11.04
	 (c)(2)
	  	11.04
	 (c)(3)
	  	N.A.
	 (d)
	  	N.A.
	 (e)
	  	11.05
	 (f)
	  	N.A.
	 315(a)
	  	7.01(b)(ii), 7.02
	 (b)
	  	7.02,7.05
	 (c)
	  	7.01(a), 7.02
	 (d)
	  	7.01(d), 7.02
	 (e)
	  	6.11
	 316(a)(last sentence)
	  	2.13(f)
	 (a)(1)(A)
	  	6.05
	 (a)(1)(B)
	  	6.04
	 (a)(2)
	  	N.A.
	 (b)
	  	6.07
	 (c)
	  	2.12; 9.03
	 317(a)(1)
	  	6.08
	 (a)(2)
	  	6.09
	 (b)
	  	2.04
	 318(a)
	  	11.01
	 (b)
	  	N.A.
	 (c)
	  	11.01

 N.A. means not applicable 
 *This
Cross-Reference Table is not part of the Indenture. 

  
 iv 

 INDENTURE dated as of
                         by and among VERU INC., a Wisconsin corporation (the “Company”), the guarantors listed
on Schedule 1 hereto (herein called the “Guarantors”), and [                        ], as Trustee (the
“Trustee”). 
 The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time
to time of its debentures, notes, or other evidences of indebtedness to be issued in one or more series (the “Securities”), as herein provided, up to such principal amount as may from time to time be authorized in or pursuant to one or
more resolutions of the Board of Directors or by supplemental indenture. 
 Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders of each series of the Securities: 
 ARTICLE 1 

DEFINITIONS AND INCORPORATION 

BY REFERENCE 

Section 1.01    Certain Definitions. 

“Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person. For purposes of this definition, “control,” as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such Person, whether through the ownership of voting securities, by agreement, or otherwise; provided, however, that beneficial ownership of 10% or more of the voting Securities of a Person shall be deemed to be a
controlling interest in such Person. For purposes of this definition, the terms “controlling,” “controlled by,” and “under common control with” have correlative meanings. 

“Agent” means any Registrar, Paying Agent, authenticating agent, or co-Registrar. 

“Board of Directors” means, with respect to any Person, the board of directors of such Person (or, if such Person is a limited
liability company, the board of managers of such Person) or similar governing body or any authorized committee thereof. 
 “Board
Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and
effect on the date of such certification (and delivered to the Trustee, if appropriate). 
 “Business Day” means any day other
than a Legal Holiday. 
 “Closing Date” means the date on which the Securities of a particular series were originally issued under
this Indenture. 
 “Commission” means the Securities and Exchange Commission. 

“Company” means the party named as such above until a successor replaces it pursuant to this Indenture and thereafter means the
successor. 
 “Company Order” means a written order signed in the name of the Company by two Officers, one of whom must be the
Company’s principal executive officer, principal financial officer, or principal accounting officer, and delivered to the Trustee. 

“Corporate Trust Office” shall mean the corporate trust office of the Trustee. 

  
 1 

 “Default” means any event that is, or with the passage of time or the giving of
notice or both would be, an Event of Default. 
 “Depositary” means, with respect to the Securities of any series issuable or
issued in whole or in part in the form of one or more Global Securities, the person designated as Depositary for such series by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if at any time there is
more than one such person, “Depositary” as used with respect to the Securities of any series shall mean the Depositary with respect to the Securities of such series. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles
Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board, or in such other statements by such other entity as have been approved by a significant segment of the
accounting profession, which are applicable to the circumstances as of the Closing Date. 
 “Global Security” shall mean a
Security issued to evidence all or a part of any series of Securities that is executed by the Company and authenticated and delivered by the Trustee to a Depositary or pursuant to such Depositary’s instructions, all in accordance with this
Indenture and pursuant to Section 2.01, which shall be registered as to principal and interest in the name of such Depositary or its nominee. 

“Guarantee” means a guarantee by any Guarantor of an obligation under this Indenture. 

“Holder” or “Securityholder” means a Person in whose name a Security is registered in the register of Securities kept by
the Registrar. 
 “Indenture” means this Indenture, as amended or supplemented from time to time. 

“Interest” when used with respect to an Original Issue Discount Security that by its terms bears interest only after Maturity, means
interest payable after Maturity. 
 “Maturity” when used with respect to any Security, means the date on which the principal of
such Security or an installment of principal becomes due and payable as therein or herein provided, whether at Stated Maturity or by declaration of acceleration, call for redemption, or otherwise. 

“Officer” means, with respect to any Person, the Chairman of the Board, a Chief Executive Officer, the President, the Chief
Operating Officer, the Chief Financial Officer, any Vice-President, the Treasurer, the Controller, the Secretary, any Assistant Treasurer, or any Assistant Secretary of such Person. 

“Officers’ Certificate” means a certificate signed by two or more Officers, one of whom must be the principal executive
officer, principal financial officer, or principal accounting officer of the Company, that meets the requirements of Section 11.05 hereof. 

“Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee that meets the requirements of
Section 11.05 hereof. The counsel may be an employee of or counsel to the Company or the Trustee. 
 “Original Issue Discount
Security” means any Security which provides that an amount less than its principal amount is due and payable upon acceleration after an Event of Default. 

“Person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint stock company,
trust, unincorporated organization or government, or other entity. 

  
 2 

 “principal” of a Security means the principal amount due on the Stated Maturity of
the Security plus the premium, if any, on the Security. 
 “Securities” means the Securities authenticated and delivered under
this Indenture. 
 “Securities Act” means the Securities Act of 1933, as amended from time to time. 

“Stated Maturity” when used with respect to any Security or any installment of interest thereon, means the date specified in such
Security as the fixed date on which the principal of such Security or such installment of interest is due and payable. 

“Subsidiary” means, with respect to any specified Person: (i) any corporation, association, or other business entity of which
more than 50% of the total voting power of shares of capital stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers, or trustees of the corporation, association, or other business entity
is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and (ii) any partnership (a) the sole general partner or the managing general
partner of which is such Person or a Subsidiary of such Person, or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof). 

“TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§77aaa-77bbbb) as in effect on the date on which this Indenture is
qualified under the TIA; provided, however, that in the event the TIA is amended after such date, “TIA” means, to the extent required by such amendment, the Trust Indenture Act, as amended. 

“Trust Officer” when used with respect to the Trustee, means any officer with direct responsibility for the administration of this
Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 

“Trustee” means the party named as such above until a successor becomes such pursuant to this Indenture and thereafter means or
includes each party who is then a trustee hereunder, and if at any time there is more than one such party, “Trustee” as used with respect to the Securities of any series means the Trustee with respect to Securities of that series. If
Trustees with respect to different series of Securities are trustees under this Indenture, nothing herein shall constitute the Trustees co-trustees of the same trust, and each Trustee shall be the trustee of a
trust separate and apart from any trust administered by any other Trustee with respect to a different series of Securities. 
 “U.S.
Government Obligations” means securities that are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and
acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that is not callable or redeemable at the option of the
issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation
held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any
amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt. 

Section 1.02    Other Definitions. 

 

			
	 Term
	  	Defined in
Section
	 “Bankruptcy Law”
	  	6.01
	 “Custodian”
	  	6.01
	 “Event of Default”
	  	6.01
	 “foreign government obligations”
	  	8.01
	 “Legal Holiday”
	  	Section 11.07
	 “Paying Agent”
	  	2.03
	 “Place of Payment”
	  	2.01
	 “redemption price”
	  	3.03
	 “Registrar”
	  	2.03

  

  
 3 

 Section 1.03    Incorporation by Reference
of Trust Indenture Act. 
 Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and
made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 
 “indenture
securities” means the Securities. 
 “indenture securityholder” means a Securityholder. 

“indenture to be qualified” means this Indenture. 

“indenture trustee” or “institutional trustee” means the Trustee. 

“obligor” on the Securities means the Company and any Guarantor and any successor obligor on the Securities. 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute, or defined by Commission rule
under the TIA have the meanings so assigned to them. 
 Section 1.04    Rules of
Construction. 
 Unless the context otherwise requires: 

(a)    a term has the meaning assigned to it; 

(b)    an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 (c)    “or” is not exclusive; 

(d)    words in the singular include the plural, and in the plural include the singular; 

(e)    provisions apply to successive events and transactions; and 

(f)    references to sections of or rules under the Securities Act shall be deemed to include substitute,
replacement of successor sections or rules adopted by the Commission from time to time. 
 ARTICLE 2 

THE SECURITIES 

Section 2.01    Unlimited In Amount, Issuable In Series, Form, and Dating. 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be
issued in one or more series. There shall be established in or pursuant to a Board Resolution or an Officers’ Certificate pursuant to authority granted under a Board Resolution or established in one or more indentures supplemental hereto, prior
to the issuance of Securities of any series: 
 (a)    the title of the Securities of the series (which
shall distinguish the Securities of the series from all other Securities); 

  
 4 

 (b)    the series designation and whether they are
senior Securities, senior subordinated Securities, or subordinated Securities; 
 (c)    any limit upon
the aggregate principal amount of Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other
Securities of the series pursuant to this Article 2); 
 (d)    the price or prices (expressed as a
percentage of the aggregate principal amount) at which the Securities will be issued and, if other than the principal amount of the Securities, the portion of the principal amount of the Securities payable upon the maturity of the debt securities;

 (e)    the date or dates on which the principal of the Securities of the series is payable; 

(f)    the rate or rates that may be fixed or variable at which the Securities of the series shall bear
interest, if any, or the manner in which such rate or rates shall be determined, the date or dates from which such interest shall accrue, the interest payment dates on which such interest shall be payable, and the record dates for the determination
of Holders to whom interest is payable; 
 (g)    the place or places where the principal of, premium, if
any, and any interest, if any, on Securities of the series shall be payable or the method of such payment, if by wire transfer, mail, or by other means, if other than as provided herein, and where the Securities can be surrendered for transfer,
exchange, or conversion; 
 (h)    the price or prices at which (if any), the period or periods within
which (if any), and the terms and conditions upon which (if other than as provided herein) Securities of the series may be redeemed, in whole or in part, at the option, or as an obligation, of the Company; 

(i)    the obligation, if any, of the Company to redeem, purchase, or repay Securities of the series, in
whole or in part, pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the price or prices at which and the period and periods within which and the terms and conditions upon which Securities of the series
shall be redeemed, purchased, or repaid pursuant to such obligation; 
 (j)    the dates, if any, on
which, and the price or prices at which, the Securities of the series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations; 

(k)    if convertible, the initial conversion price, the conversion period, and any other terms governing
such conversion; 
 (l)    if other than denominations of $1,000 and any multiple thereof, the
denominations in which Securities of the series shall be issuable; 
 (m)    if other than the principal
amount thereof, the portion of the principal amount of Securities of the series which shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 6.02 hereof; 

(n)    any addition to, change in, or deletion from the covenants set forth in Articles 4 or 5 that applies
to Securities of the series; 

  
 5 

 (o)    any addition to, changes in, or deletion from the
Events of Default with respect to the Securities of a particular series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.02
hereof; 
 (p)    the Trustee for the series of Securities; 

(q)    the forms of the Securities of the series in bearer or fully registered form (and, if in fully
registered form, whether the Securities will be issuable, in whole or in part, as Global Securities); 

(r)    whether the Securities of the series shall be issued in whole or in part in the form of a Global
Security or Securities, the terms and conditions, if any, upon which such Global Security or Securities may be exchanged in whole or in part for other individual Securities, and the Depositary for such Global Security and Securities; 

(s)    the provisions, if any, relating to any security provided for the Securities of the series; 

(t)    any other terms of the series (which terms may modify, supplement, or delete any provision of this
Indenture with respect to such series; provided, however, that no such term may modify or delete any provision hereof if imposed by the TIA; and provided, further, that any modification or deletion of the rights, duties,
or immunities of the Trustee hereunder shall have been consented to in writing by the Trustee); 

(u)    the terms and conditions, if any, upon which the Securities of the series shall be exchanged for or
converted into other securities or property of the Company or securities of another person; 
 (v)    any
depositories, interest rate calculation agents, exchange rate calculation agents, or other agents with respect to Securities of such series if other than those appointed herein; 

(w)    whether the Securities rank as senior subordinated Securities or subordinated Securities or any
combination thereof and the terms of any such subordination; 
 (x)    the form and terms of any
guarantee of any Securities of the series; 
 (y)    the terms and conditions of any defeasance
provisions; 
 (z)    the currency of denomination of the Securities; 

(aa)    the designation of the currency, currencies, or currency units in which payment of principal of,
premium, and interest on the Securities will be made; 
 (bb)    whether the Securities will be listed on
any securities exchange or quotation system; 
 (cc)    if payments of principal of, premium, or interest
on the Securities will be made in one or more currencies or currency units other than that or those in which the Securities are denominated, the manner in which the exchange rate with respect to these payments will be determined; 

(dd)    the manner in which the amounts of payment of principal of, premium, or interest on the Securities
will be determined, if these amounts may be determined by reference to an index based on a currency or currencies other than that in which the Securities are denominated or designated to be payable or by reference to a commodity, commodity index,
stock exchange index, or financial index; 
 (ee)    whether and under what circumstances, if any,
additional amounts on any Securities will be paid in respect of any tax, assessment, or governmental charge and, if so, whether the Company will have the option to redeem the Securities instead of making the payment; 

  
 6 

 (ff)    the terms and conditions pertaining to transfer,
sale, or other assignment of the Securities; and 
 (gg)    if the Securities are to be issued upon the
exercise of debt warrants, the time, manner, and place for the Securities to be authenticated and delivered. 
 All Securities of any series
shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such Board Resolution or Officers’ Certificate or in any such indenture supplemental hereto. 

The principal of, and any interest on, the Securities shall be payable at the office or agency of the Company designated in the form of
Security for the series (each such place herein called the “Place of Payment”); provided, however, that payment of interest may be made at the option of the Company by check mailed to the address of the Person entitled
thereto as such address shall appear in the register of Securities referred to in Section 2.03 hereof. 
 Each Security shall be in one
of the forms approved from time to time by or pursuant to a Board Resolution or Officers’ Certificate, or established in one or more indentures supplemental hereto. Prior to the delivery of a Security to the Trustee for authentication in any
form approved by or pursuant to a Board Resolution or Officers’ Certificate, the Company shall deliver to the Trustee the Board Resolution or Officers’ Certificate by or pursuant to which such form of Security has been approved, which
Board Resolution or Officers’ Certificate shall have attached thereto a true and correct copy of the form of Security that has been approved by or pursuant thereto. 

The Securities may have notations, legends, or endorsements required by law, stock exchange rule, or usage. Each Security shall be dated the
date of its authentication. 
 Section 2.02    Execution and Authentication. 

One or more Officers shall sign the Securities for the Company by manual or facsimile signature. 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall
nevertheless be valid. 
 A Security shall not be valid until authenticated by the manual signature of the Trustee. The signature shall be
conclusive evidence that the Security has been authenticated under this Indenture. 
 The Trustee shall authenticate Securities for original
issue upon receipt of a Company Order. 
 The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as
an Agent to deal with the Company or an Affiliate of the Company. 
 Section 2.03    Registrar and Paying Agent.

 The Company shall maintain an office or agency where Securities of a particular series may be presented for registration of transfer
or for exchange (the “Registrar”) and an office or agency where Securities of that series may be presented for payment (a “Paying Agent”). The Registrar for a particular series of Securities shall keep a register of the
Securities of that series and of their registration of transfer and exchange. The Company may appoint one or more co-Registrars and one or more additional paying agents for each series of Securities. The term
“Paying Agent” includes any additional paying agent. The Company may change any Paying Agent, Registrar, or co-Registrar without prior notice to any Securityholder. The Company shall notify the
Trustee in writing of the name and address of any Agent not a party to this Indenture. 
 If the Company fails to maintain a Registrar or
Paying Agent for any series of Securities, the Trustee shall act as such. The Company or any of its Affiliates may act as Paying Agent, Registrar, or co-Registrar. 

  
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 The Company hereby appoints the Trustee the initial Registrar and Paying Agent for each series of Securities
unless another Registrar or Paying Agent, as the case may be, is appointed prior to the time Securities of that series are first issued. 

Section 2.04    Paying Agent to Hold Money in Trust. 

Whenever the Company has one or more Paying Agents it will, prior to each due date of the principal of, or interest on, any Securities, deposit
with a Paying Agent a sum sufficient to pay the principal or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal or interest, and (unless such Paying Agent is the Trustee) the Company will
promptly notify the Trustee of its action or failure so to act. 
 The Company shall require each Paying Agent other than the Trustee to
agree in writing that such Paying Agent will hold in trust for the benefit of the Securityholders of the particular series for which it is acting, or the Trustee, all money held by the Paying Agent for the payment of principal or interest on the
Securities of such series, and that such Paying Agent will notify the Trustee of any Default by the Company or any other obligor of the series of Securities in making any such payment and at any time during the continuance of any such Default, upon
the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. If the Company or an Affiliate acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the
Securityholders of the particular series for which it is acting all money held by it as Paying Agent. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon so doing, the Paying Agent (if other than the
Company or an Affiliate of the Company) shall have no further liability for such money. Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee shall serve as Paying Agent for the Securities. 

Section 2.05    Securityholder Lists. 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of
Securityholders, separately by series, and shall otherwise comply with TIA Section 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least seven Business Days before each interest payment date and at such
other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders, separately by series, relating to such interest payment date or request,
as the case may be. 
 Section 2.06    Transfer and Exchange. 

Where Securities of a series are presented to the Registrar or a co-Registrar with a request to
register a transfer or to exchange them for an equal principal amount of Securities of the same series of other authorized denominations, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are
met. To permit registrations of transfers and exchanges, the Company shall issue and the Trustee shall authenticate Securities at the Registrar’s request. 

No service charge shall be made for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover
any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.09, 2.13, 3.06 or 9.04). 

The Company need not issue, and the Registrar or co-Registrar need not register the transfer or
exchange of, (a) any Security of a particular series during a period beginning at the opening of business 15 days before the day of any selection of Securities of that series for redemption under Section 3.02 and ending at the close of
business on the day of selection, or (b) any Security so selected for redemption in whole or in part, except the unredeemed portion of any Security of that series being redeemed in part. 

  
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 Section 2.07    Replacement Securities.

 If a mutilated Security is surrendered to the Trustee or if the Holder of a Security claims that the Security has been lost, destroyed, or
wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Security of same series if the Company’s and the Trustee’s requirements are met. The Trustee or the Company may require an indemnity bond to be
furnished which is sufficient in the judgment of both to protect the Company, the Trustee, and any Agent from any loss which any of them may suffer if a Security is replaced. The Company or the Trustee may charge such Holder for its expenses in
replacing a Security. 
 Every replacement Security is an obligation of the Company and shall be entitled to all the benefit of the
Indenture equally and proportionately with any and all other Securities of the same series. 

Section 2.08    Outstanding Securities. 

The Securities of any series outstanding at any time are all the Securities of that series authenticated by the Trustee except for those
canceled by it, those delivered to it for cancellation, and those described in this Section as not outstanding. 
 If a Security is replaced
pursuant to Section 2.07, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a protected purchaser. 

If Securities are considered paid under Section 4.01, they cease to be outstanding and interest on them ceases to accrue. 

Except as set forth in Section 2.09 hereof, a Security does not cease to be outstanding because the Company or an Affiliate holds the
Security. 
 For each series of Original Issue Discount Securities, the principal amount of such Securities that shall be deemed to be
outstanding and used to determine whether the necessary Holders have given any request, demand, authorization, direction, notice, consent, or waiver shall be the principal amount of such Securities that could be declared to be due and payable upon
acceleration upon an Event of Default as of the date of such determination. When requested by the Trustee, the Company shall advise the Trustee of such amount, showing its computations in reasonable detail. 

Section 2.09    Temporary Securities. 

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a
Company Order. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate definitive Securities in exchange for temporary Securities. 
 Holders of temporary securities shall be entitled
to all of the benefits of this Indenture. 
 Section 2.10    Cancellation. 

The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Securities surrendered to them for registration of transfer, exchange, or payment. The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, replacement, or cancellation and shall return such canceled
Securities to the Company at the Company’s written request. The Company may not issue new Securities to replace Securities that it has paid or that have been delivered to the Trustee for cancellation. 

Section 2.11    Defaulted Interest. 

If the Company fails to make a payment of interest on any series of Securities, the Company shall pay such defaulted interest plus (to the
extent lawful) any interest payable on the defaulted interest, in any lawful manner. It 

  
 9 

 
may elect to pay such defaulted interest, plus any such interest payable on it, to the Persons who are Holders of such Securities on which the interest is due on a subsequent special record date.
The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each such Security and the date of the proposed payment. The Company shall fix or cause to be fixed any such record date and payment date for
such payment, provided that no such special record date shall be less than 10 days prior to the related payment date for such defaulted interest. At least 15 days before any such record date, the Company shall mail to Securityholders affected
thereby a notice that states the record date, payment date, and amount of such interest to be paid. 

Section 2.12    Special Record Dates. 

(a)    The Company may, but shall not be obligated to, set a record date for the purpose of determining the
identity of Holders entitled to consent to any supplement, amendment, or waiver permitted by this Indenture. If a record date is fixed, the Holders of Securities of that series outstanding on such record date, and no other Holders, shall be entitled
to consent to such supplement, amendment, or waiver or revoke any consent previously given, whether or not such Holders remain Holders after such record date. No consent shall be valid or effective for more than 90 days after such record date unless
consents from Holders of the principal amount of Securities of that series required hereunder for such amendment or waiver to be effective shall have also been given and not revoked within such 90-day period.

 (b)    The Company may, but shall not be obligated to, fix any day as a record date for the purpose of
determining the Holders of any series of Securities entitled to join in the giving or making of any notice of Default, any declaration of acceleration, any request to institute proceedings, or any other similar direction. If a record date is fixed,
the Holders of Securities of that series outstanding on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request, or direction, whether or not such Holders remain Holders after such record date;
provided, however, that no such action shall be effective hereunder unless taken on or prior to the date 90 days after such record date. 

Section 2.13    Global Securities. 

(a)    Terms of Securities. A Board Resolution, a supplemental indenture hereto, or an
Officers’ Certificate shall establish whether the Securities of a series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary for such Global Security or Securities. 

(b)    Transfer and Exchange. Notwithstanding any provisions to the contrary contained in
Section 2.06 of this Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.06 of this Indenture for securities registered in the names of Holders other than the Depositary for such Security or
its nominee only if (i) such Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act,
and, in either case, the Company fails to appoint a successor Depositary within 90 days of such event; or (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect that such Global Security shall be so
exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal
amount of the Global Security with like tenor and terms. 
 Except as provided in this paragraph (b) of this Section, a Global Security
may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary, or by the Depositary or any
such nominee to a successor Depositary or a nominee of such a successor Depositary. 

(c)    Legend. Any Global Security issued hereunder shall bear a legend in substantially the
following form: 
 “Unless this certificate is presented by an authorized representative of The Depository Trust
Company, a New York corporation (“DTC”), New York, New York, to 

  
 10 

 
the issuer or its agent for registration of transfer, exchange, or payment and any certificate issued is registered in the name of Cede & Co. or such other name as may be requested by an
authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as may be requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co. has an interest herein. 
 Transfer of this Global
Security shall be limited to transfers in whole, but not in part, to nominees of DTC or to a successor thereof or such successor’s nominee and limited to transfers made in accordance with the restrictions set forth in the Indenture referred to
herein.” 
 (d)    Acts of Holders. The Depositary, as a Holder, may appoint agents and
otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver, or other action which a Holder is entitled to give or take under this Indenture. 

(e)    Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified
as contemplated by Section 2.01 hereof, payment of the principal of and interest, if any, on any Global Security shall be made to the Person specified therein. 

(f)    Consents, Declaration, and Directions. Except as provided in paragraph (e) of this
Section, the Company, the Trustee, and any Agent shall treat a Person as the Holder of such principal amount of outstanding Securities of such series represented by a Global Security as shall be specified in a written statement of the Depositary
with respect to such Global Security, for purposes of obtaining any consents, declarations, or directions required to be given by the Holders pursuant to this Indenture. 

Section 2.14    CUSIP Numbers. 

The Company in issuing any series of Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use
“CUSIP” numbers in notices as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on such Securities or as contained in any notice and
that reliance may be placed only on the other identification numbers printed on such Securities, and any such action relating to such notice shall not be affected by any defect in or omission of such numbers in such notice. The Company shall
promptly notify the Trustee of any change in the “CUSIP” numbers. 
 ARTICLE 3 

REDEMPTION 

Section 3.01    Notices to Trustee. 

If the Company elects to redeem Securities of any series pursuant to any optional redemption provisions thereof, it shall furnish to the
Trustee at least 30 days, but not more than 60 days before a redemption date, an Officer’s Certificate which shall specify (i) the provisions of such Security or this Indenture pursuant to which the redemption shall occur, (ii) the
redemption date, (iii) the principal amount of Securities of that series to be redeemed, and (iv) the redemption price. 
 If the
Company elects to reduce the principal amount of Securities of any series to be redeemed pursuant to mandatory redemption provisions thereof, it shall notify the Trustee of the amount of, and the basis for, any such reduction. If the Company elects
to credit against any such mandatory redemption Securities it has not previously delivered to the Trustee for cancellation, it shall deliver such Securities with such notice. 

  
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 Section 3.02    Selection of Securities to
Be Redeemed. 
 If less than all the Securities of any series are to be redeemed, or purchased in an offer to purchase at any time, the
Trustee shall select the Securities of that series to be redeemed or purchased as follows: (1) if the Securities of such series are listed on any national securities exchange, in compliance with the requirements of the principal national
securities exchange on which the Securities of that series are listed, or (2) if the Securities of that series are not listed on a national securities exchange, on a pro rata basis, by lot or by such other method as the Trustee deems fair and
appropriate. In the event of a partial redemption or purchase by lot, the particular Securities to be redeemed or purchased will be selected not less than 30 nor more than 60 days prior to the redemption or purchase date by the Trustee from
Securities of that series outstanding and not previously called for redemption. 
 The Trustee shall notify the Company promptly in writing
of the Securities or portions of Securities to be called for redemption or purchase and, in the case of any Securities selected for partial redemption or purchase, the principal amount thereof to be redeemed or purchased. Except as otherwise
provided as to any particular series of Securities, Securities and portions thereof that the Trustee selects shall be in amounts equal to the minimum authorized denomination for Securities of the series to be redeemed or purchased or any integral
multiple thereof, except that if all of the Securities of the series are to be redeemed or purchased, the entire outstanding amount of the Securities of the series held by such Holder, even if not equal to the minimum authorized denomination for the
Securities of that series, shall be redeemed or purchased. Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. 

Section 3.03    Notice of Redemption. 

Except as otherwise provided as to any particular series of Securities, at least 30 days but not more than 60 days before a redemption date,
the Company shall mail a notice of redemption to each Holder whose Securities are to be redeemed. 
 The notice shall identify the
Securities of the series to be redeemed and shall state: 
 (1)    the redemption date; 

(2)    the redemption price fixed in accordance with the terms of the Securities of the series to be
redeemed, plus accrued interest, if any, to the date fixed for redemption (the “redemption price”); 

(3)    if any Security is being redeemed in part, the portion of the principal amount of such Security to
be redeemed and that, after the redemption date, upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion will be issued upon cancellation of the original Securities; 

(4)    the name and address of the Paying Agent; 

(5)    that Securities called for redemption must be surrendered to the Paying Agent to collect the
redemption price; 
 (6)    that, unless the Company defaults in payment of the redemption price,
interest on Securities called for redemption ceases to accrue on and after the redemption date; 

(7)    the CUSIP number, if any, of the Securities to be redeemed; 

(8)    the paragraph of the Securities and/or the section of the Indenture pursuant to which the Securities
called for redemption are being redeemed; and 
 (9)    that no representation is made as to the
correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Securities. 
 At the Company’s request,
the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company shall have delivered to the Trustee, at least 45 days prior to the

  
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redemption date, an Officers’ Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph.
The notice mailed in the manner herein provided shall be conclusively presumed to have been duly given whether or not the Holder receives such notice. In any case, failure to give such notice by mail or any defect in the notice of the Holder of any
Security shall not affect the validity of the proceeding for the redemption of any other Security. 

Section 3.04    Effect of Notice of Redemption. 

Except if the giving of a notice of redemption would violate the terms of the Company’s credit agreement, and subject to the subordination
provisions of any series of Securities, once notice of redemption is mailed in accordance with Section 3.03 hereof, Securities called for redemption become due and payable on the redemption date for the redemption price. Upon surrender to the
Paying Agent, such Securities will be paid at the redemption price. 

Section 3.05    Deposit of Redemption Price. 

On or before 10:00 a.m., New York City time, on the redemption or purchase date, the Company shall deposit with the Trustee or Paying Agent
(or, if the Company or any Affiliate is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the redemption or purchase price of all Securities called for redemption on that date other than Securities that have previously
been delivered by the Company to the Trustee for cancellation. The Paying Agent shall return to the Company any money not required for that purpose. 

If the Company complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, interest shall cease to
accrue on the Securities (or the portions thereof) called for redemption or purchase. If a Security is redeemed or purchased on or after an interest record date but on or prior to the related interest payment date, then any accrued and unpaid
interest shall be paid to the Person in whose name such Securities were registered at the close of business on such record date. If any Securities called for redemption or purchase shall not be so paid upon surrender for redemption because of the
failure of the Company to comply with the preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or purchase date until such principal is paid, and to the extent lawful on any interest not paid on such unpaid
principal, in each case at the rate provided in accordance with the terms of the Securities of the series to be redeemed. 

Section 3.06    Securities Redeemed or Purchased in Part. 

Upon surrender of a Security that is redeemed or purchased in part, the Company shall issue and the Trustee shall authenticate for the Holder
at the expense of the Company a new Security of same series equal in principal amount to the unredeemed or unpurchased portion of the Security surrendered. 

ARTICLE 4 
 COVENANTS

 Section 4.01    Payment of Securities. 

The Company shall pay or cause to be paid the principal of, premium, if any, and interest on the Securities on the dates and in the manner
provided in this Indenture and the Securities. Principal, premium, if any, and interest shall be considered paid on the date due if the Paying Agent, if other than the Company or an Affiliate, holds as of 10:00 a.m., New York City time, on that date
immediately available funds designated for and sufficient to pay all principal, premium, if any, and interest then due. 
 To the extent
lawful, the Company shall pay interest on overdue principal and overdue installments of interest at the rate per annum borne by the applicable series of Securities. 

  
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 Section 4.02    Maintenance of Office or
Agency. 
 The Company shall maintain in the Borough of Manhattan, The City of New York, an office or agency (which may be an office of
the Trustee or an affiliate of the Trustee or Registrar) where Securities may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served.
The Company shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices, and demands may be made or served at the Corporate Trust Office of the Trustee. 

The Company may also from time to time designate one or more other offices or agencies where the Securities may be presented or surrendered
for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in
the Borough of Manhattan, The City of New York for such purposes. The Company shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. 

The Company hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Company in accordance with
Section 2.03. 
 Section 4.03    Reports. 

The Company shall deliver to the Trustee within 15 days after it files them with the Commission copies of the annual reports and of the
information, documents, and other reports (or copies of such portions of any of the foregoing as the Commission may by rules and regulations prescribe) that the Company is required to file with the Commission pursuant to Section 13 or 15(d) of
the Exchange Act; provided, however the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the Commission. The Company also shall comply with
the other provisions of TIA Section 314(a). 
 Delivery of such reports, information, and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants
hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). 

Section 4.04    Compliance Certificate. 

(a)    The Company or any Guarantors shall deliver to the Trustee, within 120 days after the end of each
fiscal year of the Company, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers (one of whom shall be
the principal executive officer, principal financial officer, or principal accounting officer of the Company) with a view to determining whether the Company has kept, observed, performed, and fulfilled its obligations under this Indenture, and
further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge the Company has kept, observed, performed, and fulfilled each and every covenant contained in this Indenture and is not in default in the
performance or observance of any of the terms, provisions, and conditions of this Indenture (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what
action the Company is taking or proposes to take with respect thereto) and that to the best of his or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of or interest, if any, on the
Securities is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto. 

(b)    The Company shall, so long as any of the Securities are outstanding, deliver to the Trustee,
forthwith upon becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto. 

  
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 Section 4.05    Taxes. 

The Company shall pay prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith
by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of any Securities. 

Section 4.06    Stay, Extension, and Usury Laws. 

The Company and any Guarantors covenant (to the extent that it may lawfully do so) that they shall not at any time insist upon, plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay, extension, or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company and each
Guarantor (to the extent that they may lawfully do so) hereby expressly waive all benefits or advantages of any such law, and covenant that they shall not, by resort to any such law, hinder, delay, or impede the execution of any power herein granted
to the Trustee, but shall suffer and permit the execution of every such power as though no such law has been enacted. 

Section 4.07    Calculation of Original Issue Discount. 

If, as of the end of any fiscal year of the Company, the Company has any outstanding Original Issue Discount Securities under the Indenture,
the Company shall file with the Trustee promptly following the end of such fiscal year (i) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on such Original Issue Discount
Securities as of the end of such year and (ii) such other specific information relating to such original issue discount as may then be required under the Internal Revenue Code of 1986, as amended from time to time. 

ARTICLE 5 
 SUCCESSORS

 Section 5.01    When Company May Merge, etc. 

In addition to provisions applicable to a particular series of Securities, the Company shall not directly or indirectly: (i) consolidate
or merge with or into another Person (whether or not the Company is the surviving Person) or (ii) sell, assign, transfer, lease, convey, or otherwise dispose of all or substantially all of the properties or assets of the Company and its
Subsidiaries in one or more related transactions to any Person unless: 
 (1)    either (x) the
Company is the surviving Person; or (y) the Person formed by or surviving any such consolidation or merger (if other than the Company) or to which such sale, assignment, transfer, lease, conveyance, or other disposition shall have been made is
a Person organized or existing under the laws of the United States, any state thereof, or the District of Columbia; 

(2)    the Person formed by or surviving any such consolidation or merger (if other than the Company) or
the Person to which such sale, assignment, transfer, lease, conveyance, or other disposition shall have been made assumes (by supplemental indenture reasonably satisfactory to the Trustee) all the obligations of the Company under the Securities and
this Indenture; and 
 (3)    immediately after the transaction no Default or Event of Default exists.

 The Company shall deliver to the Trustee on or prior to the consummation of the proposed transaction an Officers’ Certificate to the
foregoing effect and an Opinion of Counsel stating that the proposed transaction and such supplemental indenture comply with this Indenture. 

  
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 Section 5.02    Successor Person
Substituted. 
 Upon any consolidation or merger, or any sale, assignment, transfer, conveyance, or other disposition (other than by
lease) of all or substantially all of the assets of the Company in accordance with Section 5.01 hereof, the successor Person formed by such consolidation or into which the Company is merged or to which such sale, assignment, transfer,
conveyance, or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, conveyance, or other disposition, the provisions of this Indenture referring to the
“Company” shall refer instead to the successor Person and not to the Company), and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company
herein; provided, however, that the predecessor Company shall not be relieved from the obligation to pay principal of, and interest on, any Securities except in the case of a sale, assignment, transfer, conveyance, or other disposition
of all or substantially all of the Company’s assets that meets the requirements of Section 5.01 hereof. 
 ARTICLE 6 

DEFAULTS AND REMEDIES 

Section 6.01    Events of Default. 

An “Event of Default” occurs with respect to Securities of any particular series if, unless as otherwise provided in the establishing
Board Resolution, Officers’ Certificate, or supplemental indenture hereto: 
 (1)    the Company
defaults in the payment of interest on any Security of that series when the same becomes due and payable and the Default continues for a period of 30 days; 

(2)    the Company defaults in the payment, when due, of the principal of, or premium, if any, on any
Security of that series when the same becomes due and payable at Maturity, upon redemption (including in connection with any offer to purchase under the terms of such Securities), or otherwise; 

(3)    an Event of Default, as defined in the Securities of that series, occurs and is continuing, or the
Company fails to comply with any of its other agreements in the Securities of that series or in this Indenture with respect to that series and the Default continues for the period and after the notice specified below; 

(4)    the Company pursuant to or within the meaning of any Bankruptcy Law: 

(A)    commences a voluntary case; 

(B)    consents to the entry of an order for relief against it in an involuntary case; 

(C)    consents to the appointment of a Custodian of it or for all or substantially all of its property;

 (D)    makes a general assignment for the benefit of its creditors; or 

(E)    admits in writing its inability generally to pay its debts as the same become due. 

(5)    a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(A)    is for relief against the Company in an involuntary case; 

(B)    appoints a Custodian of the Company or for all or substantially all of its property; or 

  
 16 

 (C)    orders the liquidation of the Company; and the
order or decree remains unstayed and in effect for 60 days. 
 (6)    any other Event of Default provided
with respect to Securities of that series which is specified in a Board Resolution, Officers’ Certificate, or supplemental indenture establishing that series of Securities. 

The term “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors. The term
“Custodian” means any receiver, trustee, assignee, liquidator, or similar official under any Bankruptcy Law. 
 A Default under
clause (3) above is not an Event of Default with respect to a particular series of Securities until the Trustee or the Holders of at least 50% in principal amount of the then outstanding Securities of that series notify the Company of the
Default and the Company does not cure the Default within 60 days after receipt of the notice. The notice must specify the Default, demand that it be remedied, and state that the notice is a “Notice of Default.” Such notice shall be given
by the Trustee if so requested in writing by the Holders of 50% of the principal amount of the then outstanding Securities of that series. 

Section 6.02    Acceleration. 

If an Event of Default with respect to Securities of any series (other than an Event of Default specified in clauses (4) and (5) of
Section 6.01) occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 50% in principal amount of the then outstanding Securities of that series by notice to the Company and the Trustee, may, subject to any
prior notice requirements set forth in any supplemental indenture, declare the unpaid principal (or, in the case of Original Issue Discount Securities, such lesser amount as may be provided for in such Securities) of and any accrued interest on all
the Securities of that series to be due and payable on the Securities of that series. Upon such declaration the principal (or such lesser amount) and interest shall be due and payable immediately. If an Event of Default specified in clause
(4) or (5) of Section 6.01 occurs, all of such amount shall become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder. The Holders of a majority in principal amount of the then
outstanding Securities of that series by notice to the Trustee may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default with respect to that series have
been cured or waived except nonpayment of principal (or such lesser amount) or interest that has become due solely because of the acceleration. 

Section 6.03    Other Remedies. 

If an Event of Default with respect to Securities of any series occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal or interest on the Securities of that series or to enforce the performance of any provision of the Securities of that series or this Indenture. 

The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding. A
delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law. 
 Section 6.04    Waiver of Past Defaults.

 Subject to Section 6.02, the Holders of not less than a majority in aggregate principal amount of the then outstanding Securities of
any series, by notice to the Trustee, may on behalf of the Holders of the Securities of that series, waive an existing Default or Event of Default with respect to that series and its consequences except a continuing Default or Event of Default in
the payment of the principal (including any mandatory sinking fund or like payment) of, premium, if any, or interest on any Security of that series (including in connection with an offer to purchase); provided, however, that the
Holders of a majority in aggregate principal amount of the outstanding Securities of any series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration and its consequences,
including any related payment default that resulted from any 

  
 17 

 
such acceleration. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture; but
no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon. 

Section 6.05    Control by Majority. 

The Holders of a majority in principal amount of the then outstanding Securities of any series may direct the time, method, and place of
conducting any proceeding for exercising any remedy with respect to that series available to the Trustee or exercising any trust or power conferred on it. However, the Trustee may refuse to follow any direction that conflicts with law or this
Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders of Securities of that series, or that may involve the Trustee in personal liability. The Trustee may take any other action which it deems proper that is
not inconsistent with any such direction. Notwithstanding any provision to the contrary in this Indenture, the Trustee shall not be obligated to take any action with respect to the provisions of Section 6.02 unless directed to do so pursuant to
this Section 6.05. 
 Section 6.06    Limitation on Suits. 

A Holder of Securities of any series may not pursue a remedy with respect to this Indenture or the Securities unless: 

(1)    the Holder gives to the Trustee written notice of a continuing Event of Default with respect to that
series; 
 (2)    the Holders of at least 25% in principal amount of the then outstanding Securities of
that series make a written request to the Trustee to pursue the remedy; 
 (3)    such Holder or Holders
offer, and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability, or expense; 

(4)    the Trustee does not comply with the request within 60 days after receipt of the request and the
offer and, if requested, the provision of indemnity; and 
 (5)    during such 60-day period the Holders of a majority in principal amount of the then outstanding Securities of that series do not give the Trustee a direction inconsistent with the request. 

No Holder of any series of Securities may use this Indenture to prejudice the rights of another Holder of Securities of that series or to
obtain a preference or priority over another Holder of Securities of that series. 

Section 6.07    Rights of Holders to Receive Payment. 

Notwithstanding any other provision of this Indenture, the right of any Holder of a Security to receive payment of principal, premium, if any,
and interest on the Security, on or after the respective due dates expressed in the Security (including in connection with any offer to purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not,
except as provided in the subordination provisions, if any, applicable to such Security, be impaired or affected without the consent of the Holder. 

Section 6.08    Collection Suit by Trustee. 

If an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is continuing with respect to Securities of any series,
the Trustee may recover judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal (or such portion of the principal as may be specified as due upon acceleration at that time in the terms of
that series of Securities), premium, if any, and interest, remaining unpaid on the Securities of that series then outstanding, together with (to the extent lawful) interest on overdue principal and interest, and such further amount as shall be
sufficient to cover the costs and, to the extent lawful, expenses of collection, including the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agents, and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. 

  
 18 

 Section 6.09    Trustee May File Proofs of
Claim. 
 The Trustee may file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agents, and counsel, and any other amounts due to the Trustee under Section 7.07 hereof) and the
Securityholders allowed in any judicial proceedings relative to the Company (or any other obligor on the Securities), its creditors, or its property and shall be entitled to and empowered to collect, receive, and distribute any money or other
property payable or deliverable on any such claims, and any custodian in any such judicial proceedings is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agent, and counsel, and any other amounts due the Trustee under Section 7.07
hereof. Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment, or composition affecting the Securities or
the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any such proceeding. 

Section 6.10    Priorities. 

If the Trustee collects any money with respect to Securities of any series pursuant to this Article, it shall pay out the money in the
following order: 
 FIRST: to the Trustee, its agents, and attorneys for amounts due under Section 7.07 hereof,
including payment of all compensation, expense, and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection; 

SECOND: in accordance with the subordination provisions, if any, of the Securities of such series; 

THIRD: to Securityholders for amounts due and unpaid on the Securities of such series for principal, premium, if any, and
interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities of such series for principal, premium, if any, and interest, respectively; and 

FOURTH: to the Company or to such party as a court of competent jurisdiction shall direct. 

The Trustee may fix a record date and payment date for any payment to Holders of Securities of any series pursuant to this Section. The
Trustee shall notify the Company in writing reasonably in advance of any such record date and payment date. 

Section 6.11    Undertaking for Costs. 

In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted
by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defense made by the party litigant. This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.07 hereof, or a suit by Holders of more than 10% in principal amount of the then outstanding Securities of any series. 

  
 19 

 ARTICLE 7 

TRUSTEE 

Section 7.01    Duties of Trustee. 

(a)    If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights
and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. 

(b)    Except during the continuance of an Event of Default known to the Trustee: 

(i)    the duties of the Trustee shall be determined solely by the express provisions of this Indenture or
the TIA and the Trustee need perform only those duties that are specifically set forth in this Indenture or the TIA and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 

(ii)    in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, in the case of any certificates or opinions which by any
provision hereof are specifically required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate
the accuracy of mathematical calculations or other facts stated therein). 
 (c)    The Trustee may not
be relieved from liabilities for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that: 

(i)    this paragraph does not limit the effect of paragraph (b) of this Section; 

(ii)    the Trustee shall not be liable for any error of judgment made in good faith by a responsible
officer of the Trustee, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and 

(iii)    the Trustee shall not be liable with respect to any action it takes or omits to take in good faith
in accordance with a direction received by it pursuant to Section 6.05 hereof. 
 (d)    Whether or
not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section. 

(e)    No provision of this Indenture shall require the Trustee to expend or risk its own funds or incur
any liability. The Trustee may refuse to perform any duty or exercise any right or power, including without limitation, the provisions of Section 6.05 hereof, unless it receives security and indemnity satisfactory to it against any loss,
liability or expense. 
 (f)    The Trustee shall not be liable for interest on any money received by it
except as the Trustee may agree in writing with the Company. Absent written instruction from the Company, the Trustee shall not be required to invest any such money. Money held in trust by the Trustee need not be segregated from other funds except
to the extent required by law. 
 Section 7.02    Rights of Trustee. 

Subject to TIA Section 315(a) through (d): 

(a)    The Trustee may conclusively rely on any document believed by it to be genuine and to have been
signed or presented by the proper person. The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness, or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit. 

  
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 (b)    Before the Trustee acts or refrains from acting,
it may require an Officers’ Certificate or an Opinion of Counsel, or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. 

(c)    The Trustee may act through agents and shall not be responsible for the misconduct or negligence of
any agent appointed with due care. 
 (d)    The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its rights or powers under the Indenture, unless the Trustee’s conduct constitutes negligence. 

(e)    Unless otherwise specifically provided in this Indenture, any demand, request, direction, or notice
from the Company shall be sufficient if signed by an Officer of the Company. 
 (f)    The Trustee may
consult with counsel of its selection and may rely upon the advice of such counsel or any Opinion of Counsel. 

(g)    The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Trust
Officer of the Trustee has actual knowledge thereof or unless written notice of any event that is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or
the Securities of a particular series, as the case may be, and this Indenture. 
 (h)    The permissive
rights of the Trustee to do things enumerated in this Indenture shall not be construed as duties. 

Section 7.03    Individual Rights of Trustee. 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an
Affiliate with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the Trustee is subject to TIA Sections 310(b) and 311. 

Section 7.04    Trustee’s Disclaimer. 

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the
Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its certificate of authentication. 

Section 7.05    Notice of Defaults. 

If a Default or Event of Default with respect to the Securities of any series occurs and is continuing and if it is known to the Trustee, the
Trustee shall mail to all Holders of Securities of that series a notice of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in payment on any such Security, the Trustee may withhold
the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of such Securityholders. 

Section 7.06    Reports by Trustee to Holders. 

Within 60 days after May 15 in each year, the Trustee with respect to any series of Securities shall mail to Holders of Securities of that
series as provided in TIA Section 313(c) a brief report dated as of such May 15 that complies with TIA Section 313(a) (if such report is required by TIA Section 313(a)). The Trustee shall also comply with TIA
Section 313(b)(2). 

  
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 A copy of each report at the time of its mailing to Securityholders shall be mailed to the
Company and filed with the Commission and each stock exchange on which any of the Securities are listed, as required by TIA Section 313(d). The Company shall notify the Trustee when the Securities are listed on any stock exchange, and of any
delisting thereof. 
 Section 7.07    Compensation and Indemnity. 

The Company shall pay to the Trustee from time to time such compensation as shall be agreed upon in writing for its services hereunder. The
Company shall reimburse the Trustee upon written request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include the reasonable
compensation and out-of-pocket expenses of the Trustee’s agents and counsel. 

The Company shall indemnify each of the Trustee or any predecessor Trustee for any loss, liability, damage, claims, or expenses, including
taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it, without negligence or bad faith on its part, in connection with the acceptance or administration of this Indenture and its duties hereunder.
The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the Company shall pay the
reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent. 
 To secure the
Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee in its capacity as Trustee, except money or property held in trust to pay principal
and interest on particular Securities. Such lien will survive the satisfaction and discharge of this Indenture. 
 If the Trustee incurs
expenses or renders services after an Event of Default specified in Section 6.01(4) or (5) hereof occurs, the expenses and the compensation for the services will be intended to constitute expenses of administration under any applicable
Bankruptcy Law. 
 This Section 7.07 shall survive the resignation or removal of the Trustee and the termination of this Indenture.

 Section 7.08    Replacement of Trustee. 

A resignation or removal of the Trustee with respect to one or more or all series of Securities and appointment of a successor Trustee shall
become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section. 
 The Trustee may resign
with respect to one or more or all series of Securities by so notifying the Company in writing. The Holders of a majority in principal amount of the then outstanding Securities of any series may remove the Trustee as to that series by so notifying
the Trustee in writing and may appoint a successor Trustee with the Company’s consent. The Company may remove the Trustee with respect to one or more or all series of Securities if: 

(1)    the Trustee fails to comply with Section 7.10 hereof; 

(2)    the Trustee is adjudged bankrupt or insolvent; 

(3)    a receiver or other public officer takes charge of the Trustee or its property; or 

(4)    the Trustee becomes incapable of acting. 

If, as to any series of Securities, the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the
Company shall promptly appoint a successor Trustee for that series. Within one year after the successor Trustee with respect to any series takes office, the Holders of a majority in principal amount of the then outstanding Securities of that series
may appoint a successor Trustee to replace the successor Trustee appointed by the Company. If a successor Trustee as to a particular series does not take office within 60 days after 

  
 22 

 
the retiring Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders of at least 10% in principal amount of the then outstanding Securities of that series may petition
any court of competent jurisdiction for the appointment of a successor Trustee. 
 If the Trustee fails to comply with Section 7.10
hereof with respect to any series, any Holder of Securities of that series who satisfies the requirements of TIA Section 310(b) may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee for that series. 
 A successor Trustee as to any series of Securities shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee (subject to the lien provided for in Section 7.07 hereof), the resignation or
removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers, and duties of the Trustee under this Indenture as to that series. The successor Trustee shall mail a notice of its succession to the
Holders of Securities of that series. 
 Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligations under Section 7.07 hereof shall continue for the benefit of the retiring trustee. 
 In case of the appointment hereunder
of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee, and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and that (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights,
powers, trusts, and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) shall contain such provisions as shall be necessary or desirable to
confirm that all the rights, powers, trusts, and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and
(3) shall add to or change any of the provisions of this Indenture as shall be necessary or desirable to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; provided, however, that
nothing herein or in such supplemental indenture shall constitute such Trustee co-trustees of the same trust and that each such Trustee shall be trustee of a trust hereunder separate and apart from any trust
hereunder administered by any other such Trustee. 
 Upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed, or conveyance, shall become vested with all the rights, powers, trusts, and duties of the retiring
Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. 

Section 7.09    Successor Trustee by Merger, etc. 

If the Trustee as to any series of Securities consolidates, merges, or converts into, or transfers all or substantially all of its corporate
trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee as to that series. 

Section 7.10    Eligibility; Disqualification. 

Each series of Securities shall always have a Trustee who satisfies the requirements of TIA Section 310(a)(1), (2), and (5). The Trustee
as to any series of Securities shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee is subject to TIA Section 310(b). 

Section 7.11    Preferential Collection of Claims Against Company. 

The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated therein. 

  
 23 

 ARTICLE 8 

SATISFACTION AND DISCHARGE; DEFEASANCE 

Section 8.01    Satisfaction and Discharge. 

This Indenture will be discharged and will cease to be of further effect with respect to any series of Securities issued hereunder, when: 

(1)    either: 

(A)    all Securities of such series that have been authenticated (except lost, stolen, or destroyed
Securities that have been replaced or paid and notes for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company) have been delivered to the Trustee for cancellation; or 

(B)    all Securities of such series that have not been delivered to the Trustee for cancellation have
become due and payable by reason of the making of a notice of redemption or otherwise or will become due and payable within one year and the Company or any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds
in trust solely for the benefit of the Holders, cash in U.S. dollars, non-callable U.S. Government Obligations, foreign government obligations, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest, to pay and discharge the entire indebtedness on the Securities not delivered to the Trustee for cancellation for principal, premium, and accrued interest to the date of Maturity or redemption;

 (2)    no Default or Event of Default with respect to such series of Securities shall have occurred
and be continuing on the date of such deposit or shall occur as a result of such deposit and such deposit will not result in a breach or violation of, or constitute a default under, any other material instrument to which the Company or any Guarantor
is a party to or by which the Company or any Guarantor is bound; 
 (3)    the Company or any Guarantor
has paid or caused to be paid all sums payable by it under this Indenture with respect to such series of Securities; and 

(4)    the Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the
deposited money toward the payment of the Securities of such series at Maturity or the redemption date, as the case may be. In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent to satisfaction and discharge have been satisfied. 
 Notwithstanding, the satisfaction and discharge of this Indenture
with respect to a series of Securities, if money shall have been deposited with the Trustee pursuant to subclause (B) of clause (1) of this Section, the provisions of Section 8.06 shall survive. 

For purposes of this Indenture, the term “foreign government obligations” means, with respect to Securities of any series that are
denominated in a currency other than United States dollars, (a) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged, which are not
callable or redeemable at the option of the issuer thereof; or (b) obligations of a person controlled or supervised by or acting as an agency or instrumentality of that government, the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation by that government, which are not callable or redeemable at the option of the issuer thereof. 

  
 24 

 Section 8.02    Option to Effect Legal
Defeasance or Covenant Defeasance. 
 Unless Section 8.03 or 8.04 is otherwise specified to be inapplicable to Securities of a
series, the Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers’ Certificate, at any time, elect to have either Section 8.03 or 8.04 hereof be applied to all outstanding Securities of any
such series upon compliance with the conditions set forth below in this Article 8. 

Section 8.03    Legal Defeasance and Discharge. 

Upon the Company’s exercise under Section 8.02 hereof of the option applicable to this Section 8.03, the Company and any
Guarantor shall, subject to the satisfaction of the conditions set forth in Section 8.05 hereof, be deemed to have been discharged from their respective obligations with respect to all outstanding Securities of any series on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means that the Company and any Guarantor shall be deemed to have paid and discharged the entire indebtedness represented by the
outstanding Securities of a series, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.06 hereof and the other Sections of this Indenture referred to in (a) and (b) below, and to have
satisfied all its other obligations under such Securities and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which shall
survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding Securities to receive solely from the trust fund described in Section 8.05 hereof, and as more fully set forth in such Section, payments
in respect of the principal of, premium, and interest on such Securities when such payments are due, (b) the Company’s obligations with respect to such Securities under Article 2 and Section 4.02 hereof, (c) the rights, powers,
trusts, duties, and immunities of the Trustee hereunder and the Company’s or any Guarantors’ obligations in connection therewith, and (d) this Article 8. Subject to compliance with this Article 8, the Company may exercise its option
under this Section 8.03 notwithstanding the prior exercise of its option under Section 8.04 hereof. 

Section 8.04    Covenant Defeasance. 

Upon the Company’s exercise under Section 8.02 hereof of the option applicable to this Section 8.04, the Company or any
Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.05 hereof, be released from their respective obligations under the covenants contained in Sections 4.03, 4.04, 4.05, 4.06, and 4.07, and Section 5.01
hereof with respect to the outstanding Securities of any series on and after the date the conditions set forth in Section 8.05 are satisfied (hereinafter, “Covenant Defeasance”), and the Securities of such series shall thereafter be
deemed not “outstanding” for the purposes of any direction, waiver, consent, or declaration, or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding”
for all other purposes hereunder (it being understood that such Securities shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Securities of any series, the
Company or any Guarantors may omit to comply with and shall have no liability in respect of any term, condition, or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as
specified above, the remainder of this Indenture and such Securities shall be unaffected thereby. In addition, upon the Company’s exercise under Section 8.02 hereof of the option applicable to this Section 8.04 hereof, subject to the
satisfaction of the conditions set forth in Section 8.05 hereof, Sections 6.01(3) through 6.01(6) hereof shall not constitute Events of Default. 

Section 8.05    Conditions to Legal or Covenant Defeasance. 

The following shall be the conditions to the application of either Section 8.03 or 8.04 hereof to the outstanding Securities of any
series. In order to exercise either Legal Defeasance or Covenant Defeasance: 
 (a)    the Company must
irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in United States dollars, non-callable U.S. Government Obligations, foreign government obligations, or a combination
thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, and interest on the outstanding Securities on the stated date for payment thereof or
on the applicable redemption date, as the case may be; 

  
 25 

 (b)    in the case of an election under
Section 8.03 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that (1) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling or (2) since the date hereof, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of
the outstanding Securities will not recognize income, gain, or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would
have been the case if such Legal Defeasance had not occurred; 
 (c)    in the case of an election under
Section 8.04 hereof, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that the Holders of the outstanding Securities will not recognize income, gain, or
loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income tax on the same amounts, in the same manner, and at the same times as would have been the case if such Covenant Defeasance had not
occurred; 
 (d)    no Default or Event of Default shall have occurred and be continuing on the date of
such deposit (other than a Default or Event of Default resulting from the incurrence of indebtedness all or a portion of the proceeds of which will be used to defease the Securities pursuant to this Article 8 concurrently with such incurrence) or
insofar as Sections 6.01(4) or 6.01(5) hereof is concerned, at any time in the period ending on the 91st day after the date of deposit; 

(e)    such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or
constitute a default under, any material agreement or instrument (other than this Indenture) to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound; 

(f)    the Company shall have delivered to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders over any other creditors of the Company or with the intent of defeating, hindering, delaying, or defrauding any other creditors of the Company; and 

(g)    the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance have been complied with. 

Section 8.06    Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions. 
 Subject to Section 8.07 hereof, all money and non-callable U.S.
Government Obligations or foreign government obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.06, the “Trustee”) pursuant to
Section 8.01 or Section 8.05 hereof in respect of the outstanding Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law. 
 The Company shall pay and indemnify the Trustee against any
tax, fee, or other charge imposed on or assessed against the cash or non-callable U.S. Government Obligations or foreign government obligations deposited pursuant to Section 8.05 hereof or the principal
and interest received in respect thereof other than any such tax, fee, or other charge which by law is for the account of the Holders of the outstanding Securities. 

Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request
of the Company any money or non-callable U.S. Government Obligations or 

  
 26 

 
foreign government obligations held by it as provided in Section 8.05 hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.05(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or
Covenant Defeasance. 
 Section 8.07    Repayment to Company. 

Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest on any Securities and remaining unclaimed for two years after such principal and premium, if any, or interest has become due and payable shall be paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Securities shall thereafter look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in the New York Times and
The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company. 
 Section 8.08    Reinstatement.

 If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable U.S.
Government Securities in accordance with Section 8.03 or 8.04 hereof, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.03 or 8.04 hereof until such time as the Trustee or Paying Agent is permitted to apply
all such money in accordance with Section 8.03 or 8.04 hereof, as the case may be; provided, however, that, if the Company makes any payment of principal of, premium, if any, or interest on any Securities following the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent. 

ARTICLE 9 
 SUPPLEMENTS,
AMENDMENTS, AND WAIVERS 
 Section 9.01    Without Consent of Holders. 

The Company and the Trustee as to any series of Securities may supplement or amend this Indenture or the Securities without notice to or the
consent of any Securityholder: 
 (1)    to cure any ambiguity, defect, or inconsistency; 

(2)    to comply with Article 5; 

(3)    to comply with any requirements of the Commission in connection with the qualification of this
Indenture under the TIA; 
 (4)    to add or change any provisions of this Indenture to facilitate the
issuance of, or to liberalize the terms of, Securities issued in bearer form, or to permit or facilitate the issuance of Securities in uncertificated form, provided that this action will not adversely affect the interests of the Holders of the
Securities of any series in any material respect; 
 (5)    to add to, change, or eliminate any of the
provisions of this Indenture in respect of one or more series of Securities; provided, however, that any such addition, change, or elimination (A) shall neither (i) apply to any Security of any series created prior to the
execution of such supplemental indenture 

  
 27 

 
and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of any such Security with respect to such provision; or (B) shall become effective only when there
is no outstanding Security of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision; 

(6)    to add to existing covenants additional covenants for the benefit of the Holders of all or any
series of Securities, to surrender any right or power conferred upon the Company in this Indenture, or to add events of default for the benefit of Holders of all or any series of Securities; 

(7)    to secure previously unsecured Securities; 

(8)    to make any change that does not adversely affect in any material respect the interests of the
Securityholders of any series; 
 (9)    to establish additional series of Securities as permitted by
Section 2.01 hereof; 
 (10)    to establish the form or terms of Securities of any series,
including the provisions and procedures, if applicable, for the conversion or exchange of the Securities into other securities or property; 

(11)    to evidence and provide for the acceptance or appointment of a successor Trustee or facilitate the
administration of the trusts under this Indenture by more than one Trustee; 
 (12)    to make any
provision with respect to the conversion or exchange of rights of Holders pursuant to the requirements of this Indenture; 

(13)    to close this Indenture with respect to the authentication and delivery of additional series of
Securities or to qualify, or maintain qualification of, this Indenture under the TIA; or 
 (14)    to
supplement any of the provisions of this Indenture to the extent necessary to permit or facilitate defeasance and discharge of any series of Securities, provided that the action shall not adversely affect the interests of the Holders of Securities
of any series in any material respect. 
 Section 9.02    With Consent of Holders. 

Subject to Section 6.07, the Company and the Trustee as to any series of Securities may amend this Indenture or the Securities of that
series with the written consent of the Holders of a majority in principal amount of the then outstanding Securities of each series affected by the amendment, with each such series voting as a separate class. The Holders of a majority in principal
amount of the then outstanding Securities of any series may also waive compliance in a particular instance by the Company with any provision of this Indenture with respect to that series or the Securities of that series; provided,
however, that without the consent of each Securityholder affected, an amendment or waiver may not: 

(1)    reduce the percentage of the principal amount of Securities whose Holders must consent to an
amendment or waiver; 
 (2)    reduce the amount of, or postpone the date fixed for, the payment of any
sinking fund or analogous provision; 
 (3)    reduce the rate of, or change the time for payment of
interest on, any Security; 
 (4)    reduce the principal of or change the fixed Maturity of any Security
or waive a redemption payment or alter the redemption provisions with respect thereto; 
 (5)    make any
Security payable in money other than that stated in the Security (including defaulted interest); 

  
 28 

 (6)    reduce the principal amount of Original Issue
Discount Securities payable upon acceleration of the Maturity thereof; 
 (7)    make any change in
Section 6.04, 6.07, or this Section 9.02; 
 (8)    waive a default in the payment of the
principal of, or interest on, any Security, except to the extent otherwise provided for in Section 6.02 hereof; 

(9)    change the place of payment on a Security; 

(10)    change the currency or currencies of payment of the principal of, and any premium, make-whole
payment, interest, or additional amounts on, any Security; 
 (11)    reduce the percentage of Holders of
Securities whose consent is needed to modify or amend this Indenture; 
 (12)    reduce the percentage of
the Holders of outstanding Securities of any series necessary to modify or amend this Indenture, to waive compliance with provisions of this Indenture or defaults and their consequences under this Indenture, or to reduce the quorum or voting
requirements contained in this Indenture; 
 (13)    make any change that adversely affects the right to
convert or exchange any Security other than as permitted by this Indenture or decrease the conversion or exchange rate or increase the conversion or exchange price of any such Security; or 

(14)    waive a redemption payment with respect to any Security. 

An amendment or waiver under this Section that waives, changes, or eliminates any covenant or other provision of this Indenture that has
expressly been included solely for the benefit of one or more particular series of Securities, or that modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect
the rights under this Indenture of the Holders of Securities of any other series. 
 It shall not be necessary for the consent of the
Holders under this Section to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof. 

The Company shall mail supplemental indentures to Holders upon request. Any failure of the Company to mail such notice, or any defect therein,
shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver. 

Section 9.03    Revocation and Effect of Consents. 

Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security; provided, however, any such Holder or
subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the written notice of revocation before the date on which the amendment, supplement, or waiver becomes effective. An amendment, supplement,
or waiver shall become effective in accordance with its terms and thereafter shall bind every Holder of Securities of that series. 

Section 9.04    Notation on or Exchange of Securities. 

If an amendment, supplement, or waiver changes the terms of a Security: (a) the Trustee may require the Holder of the Security to deliver
it to the Trustee, the Trustee may, at the written direction of the Company and at the Company’s expense, place an appropriate notation on the Security about the changed terms and return it to the

  
 29 

 
Holder and the Trustee may place an appropriate notation on any Security thereafter authenticated; or (b) if the Company or the Trustee so determines, the Company in exchange for the
Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. 
 Failure to make the appropriate
notation or issue a new Security shall not affect the validity and effect of such amendment, supplement, or waiver. 

Section 9.05    Trustee to Sign Amendments, etc. 

Subject to the preceding sentence, the Trustee shall sign any amendment or supplemental indenture if the same does not adversely affect the
rights, duties, liabilities, or immunities of the Trustee. The Trustee may, but shall not be obligated to, execute any such amendment, supplement, or waiver that affects the Trustee’s own rights, duties, liabilities, or immunities under this
Indenture or otherwise. The Company may not sign an amendment or supplemental indenture until the Board of Directors approves it. In executing any amended or supplemental indenture, the Trustee shall be entitled to receive and (subject to
Section 7.01) shall be fully protected in relying upon, in addition to the documents required by Section 11.04 hereof, an Officer’s Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture. 
 ARTICLE 10 

GUARANTEES 

Section 10.01    Guarantee. 

Any series of Securities may be guaranteed by one or more of the Guarantors. The terms and the form of any such Guarantee will be established
in the manner contemplated by Section 2.01 for that particular series of Securities. 
 ARTICLE 11 

MISCELLANEOUS 

Section 11.01    Indenture Subject to Trust Indenture Act. 

This Indenture is subject to the provisions of the TIA that are required to be part of this Indenture, and shall, to the extent applicable, be
governed by such provisions. 
 Section 11.02    Notices. 

Any notice or communication is duly given if in writing and delivered in person or sent by first-class mail (registered or certified, return
receipt requested), telecopier or overnight air courier guaranteeing next-day delivery, addressed as follows: 
  

					
		  	 If to the Company and/or any Guarantor:
  
	  	
		  	 Veru Inc.
 48 NW 25th Street, Suite 102
 Miami, FL 33127

Attention: Chief Financial Officer
  
	  	
		  	 If to the Trustee:
  
	  	
		  	                        	  	
		  	                        	  	
		  	                        	  	
		  	 Attention:
                        

Telephone:
                        

Facsimile:
                        
	  	

  
 30 

 The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications. 
 All notices and communications (other than those sent to Holders) shall be deemed to
have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and the next Business Day after timely delivery
to the courier, if sent by overnight air courier guaranteeing next-day delivery. 
 Any notice or
communication to a Securityholder shall be mailed by first-class mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to his address shown on the register kept by the Registrar. Failure
to mail a notice or communication to a Security holder or any defect in it shall not affect its sufficiency with respect to other Securityholders. If the Company mails a notice or communication to Securityholders, it shall mail a copy to the Trustee
at the same time. Any notice or communication shall also be mailed to any Person described in TIA Section 313(c), to the extent required by the TIA. 

If a notice or communication is mailed in the manner provided above within the time prescribed, it is duly given, whether or not the addressee
receives it. 
 Section 11.03    Communication By Holders With Other Holders. 

Holders may communicate pursuant to TIA Section 312(b) with other Holders with respect to their rights under this Indenture or the
Securities. The Company, the Trustee, the Registrar, and anyone else shall have the protection of TIA Section 312(c). 

Section 11.04    Certificate and Opinion as to Conditions Precedent. 

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the
Trustee: 
 (a)    an Officers’ Certificate, in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 11.05 hereof) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been
complied with; and 
 (b)    an Opinion of Counsel, in form and substance reasonably satisfactory to the
Trustee (which shall include the statements set forth in Section 11.05 hereof) stating that, in the opinion of such counsel, such action is authorized or permitted by this Indenture and that all such conditions precedent have been complied
with. 
 Section 11.05    Statements Required in Certificate or Opinion. 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than the certificate
provided pursuant to TIA Section 314(a)(4)) shall include: 
 (1)    a statement that the Person
making such certificate or opinion has read such covenant or condition; 
 (2)    a brief statement as to
the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 

  
 31 

 (3)    a statement that, in the opinion of such Person,
he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(4)    a statement as to whether or not, in the opinion of such Person, such condition or covenant has been
complied with; provided, however, that with respect to matters of fact an Opinion of Counsel may rely on an officer’s certificate or certificates of public officials. 

Section 11.06    Rules by Trustee and Agents. 

The Trustee as to Securities of any series may make reasonable rules for action by or at a meeting of Holders of Securities of that series. The
Registrar and any Paying Agent or authenticating agent may make reasonable rules and set reasonable requirements for their functions. 

Section 11.07    Legal Holidays. 

A “Legal Holiday” is a Saturday, a Sunday, or a day on which banking institutions in the City of New York, New York or at a place of
payment are authorized by law, regulation, or executive order to remain closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest
shall accrue for the intervening period. 
 Section 11.08    No Recourse Against
Others. 
 No past, present or future director, officer, employee, manager, securityholder, or incorporator, as such, of the Company or
any successor Person shall have any liability for any obligations of the Company or any Guarantor under any series of Securities, any guarantees thereof, or the Indenture or for any claim based on, in respect of, or by reason of such obligations or
their creation. Each Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration of issuance of the Securities. 

Section 11.09    Counterparts. 

This Indenture may be executed by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement. 

Section 11.10    Governing Law. 

The internal laws of the state of New York shall govern and be used to construe this Indenture and the Securities (including any guarantees
thereof), without giving effect to the applicable principles of conflicts of laws to the extent that the application of the laws of another jurisdiction would be required thereby. 

Section 11.11    Submission to Jurisdiction; Service of Process; Waiver of Jury Trial.

 Each party hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New
York and of any New York State Court sitting in New York City for purposes of all legal proceedings arising out of or relating to this Indenture, the Securities (including any guarantee thereof) or the transactions contemplated hereby and thereby.
Each party hereto irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought
in such a court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the state of New York. Without limiting the foregoing, the parties
agree that service of process upon such party at the address referred to in Section 11.02, together with written notice of such service to such party, shall be deemed effective service of process upon such party. Each of the parties hereto
irrevocably waives any and all rights to trial by jury in any legal proceeding arising out of or relating to this Indenture, the Securities (including any guarantee thereof), or the transactions contemplated hereby and thereby. 

  
 32 

 Section 11.12    Severability. 

In case any provision in this Indenture or in the Securities shall be invalid, illegal, or unenforceable, the validity, legality, and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 11.13    Effect of Headings, Table of Contents, etc. 

The Article and Section headings herein and the table of contents are for convenience only and shall not affect the construction hereof. 

Section 11.14    Successors and Assigns. 

All covenants and agreements of the Company in this Indenture and the Securities shall bind its successors and assigns. All agreements of the
Trustee in this Indenture shall bind its successor. All agreements of any Guarantor in this Indenture shall bind its successors, except as otherwise provided by the terms hereof. 

Section 11.15    No Interpretation of Other Agreements. 

This Indenture may not be used to interpret another indenture, loan, or debt agreement of the Company or any Subsidiary or of any Person. Any
such indenture, loan, or debt agreement may not be used to interpret this Indenture. 
 [Signature Page Follows] 

  
 33 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all
as of the date first above written. 
  

			
	 ISSUER:

	
	 VERU INC.

		
	 By:
	 	
                 

		 	Name:
		 	Title:
	
	 TRUSTEE:

	
	
[                  
              ]

		
	 By:
	 	
                     
    

		 	Name:
		 	Title:
	
	 GUARANTORS:

	
	
[                  
              ]

		
	 By:
	 	
                 

		 	Name:
		 	Title:
		 	

 Schedule 1 

GUARANTORSExhibit 10.1

 

EXECUTION VERSION

 

	 	 

 

SALE AND SERVICING AGREEMENT

 

by and among

 

HORIZON FUNDING I, LLC,

as the Issuer,

 

HORIZON SECURED LOAN FUND I LLC,

as the Originator and as the Seller,

 

HORIZON TECHNOLOGY FINANCE CORPORATION,

as the Servicer,

 

and

 

U.S. BANK NATIONAL ASSOCIATION,

as the Trustee, Backup Servicer, Lockbox Bank, Custodian and Securities Intermediary

 

Dated as of June 1, 2018

 

	 

 

HORIZON FUNDING I, LLC

Asset-Backed Notes

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	ARTICLE I DEFINITIONS	2
	Section 1.01   Definitions	2
	Section 1.02   Usage of Terms	33
	Section 1.03   Section References	33
	Section 1.04   Calculations	33
	Section 1.05   Accounting Terms	33
	ARTICLE II ESTABLISHMENT OF ISSUER; TRANSFER OF LOAN ASSETS	34
	Section 2.01   Creation and Funding of Issuer; Transfer of Loan Assets	34
	Section 2.02   Conditions to Transfer of Initial Loan Assets to Issuer	35
	Section 2.03   Acceptance by Issuer	36
	Section 2.04   Conveyance of Substitute Loans	36
	Section 2.05   Conveyance of Subsequent Loans	38
	Section 2.06   Optional Sales of Loans	40
	Section 2.07   Optional Substitution of Loans	41
	Section 2.08   Release of Excluded Property	41
	Section 2.09   Delivery of Documents in the Loan File	41
	Section 2.10   Limitations on Optional Sale and Substitution	42
	Section 2.11   Certification by Trustee and Custodian; Possession of Loan Files	43
	ARTICLE III REPRESENTATIONS AND WARRANTIES	45
	Section 3.01   Representations and Warranties Regarding the Originator	45
	Section 3.02   Representations and Warranties Regarding Each Loan and as to Certain Loans in the Aggregate	49
	Section 3.03   [Reserved]	49
	Section 3.04   Representations and Warranties Regarding the Required Loan Documents	49
	Section 3.05   [Reserved]	49
	Section 3.06   Representations and Warranties Regarding the Servicer	50
	Section 3.07   Representations of the Backup Servicer	51

 

    -i-

     

    

 

TABLE OF CONTENTS

 (continued)

 

	 	Page
	ARTICLE IV PERFECTION OF TRANSFER AND  PROTECTION OF SECURITY INTERESTS	52
	Section 4.01   Custody of Loans	52
	Section 4.02   Filing	52
	Section 4.03   Changes in Name, Organizational Structure or Location	53
	Section 4.04   Costs and Expenses	53
	Section 4.05   Sale Treatment	53
	Section 4.06   Separateness from Issuer	53
	ARTICLE V SERVICING OF LOANS	54
	Section 5.01   Appointment and Acceptance	54
	Section 5.02   Duties of the Servicer and the Backup Servicer.	54
	Section 5.03   Liquidation of Loans	60
	Section 5.04   [Reserved]	61
	Section 5.05   [Reserved]	61
	Section 5.06   Collection of Certain Loan Payments	61
	Section 5.07   Access to Certain Documentation and Information Regarding the Loans	61
	Section 5.08   Satisfaction of Liens and Collateral and Release of Loan Files	62
	Section 5.09   Scheduled Payment Advances; Servicing Advances and Nonrecoverable Advances	63
	Section 5.10   Title, Management and Disposition of Foreclosed Property	63
	Section 5.11   Servicing Compensation	64
	Section 5.12   Assignment; Resignation	65
	Section 5.13   Merger or Consolidation of Servicer	65
	Section 5.14   Limitation on Liability of the Servicer and Others	66
	Section 5.15   Determination of General Reserve Account Required Balance	66
	Section 5.16   Determination of Principal Reinvestment Account Allocation Amount during Investment Period	66
	ARTICLE VI COVENANTS OF THE ORIGINATOR	67
	Section 6.01   Legal Existence	67
	Section 6.02   [Reserved]	67
	Section 6.03   Security Interests	67
	Section 6.04   Delivery of Collections	67

 

    -ii-

     

    

 

TABLE OF CONTENTS

 (continued)

 

	 	Page
	Section 6.05   Regulatory Filings	67
	Section 6.06   Compliance with Law	68
	Section 6.07   Limitation on Liability of Originator and Others	68
	Section 6.08   Payments from Obligors	68
	ARTICLE VII ESTABLISHMENT OF ACCOUNTS;  DISTRIBUTIONS;	68
	Section 7.01   Distribution Account; Lockbox Account and Other Accounts	68
	Section 7.02   General Reserve Account	70
	Section 7.03   Collection Account	71
	Section 7.04   Noteholder Distributions	74
	Section 7.05   Allocations and Distributions	74
	ARTICLE VIII SERVICER DEFAULT; SERVICER TRANSFER	79
	Section 8.01   Servicer Default	79
	Section 8.02   Servicer Transfer	80
	Section 8.03   Acceptance by Successor Servicer; Reconveyance; Successor Servicer to Act	82
	Section 8.04   Notification to Noteholders	83
	Section 8.05   Effect of Transfer	84
	Section 8.06   Database File	84
	Section 8.07   Waiver of Defaults	84
	ARTICLE IX REPORTS	84
	Section 9.01   Monthly Reports	84
	Section 9.02   [Reserved]	85
	Section 9.03   Preparation of Reports; Officer’s Certificate	85
	Section 9.04   Other Data; Obligor Financial Information	86
	Section 9.05   Annual Report of Accountants	87
	Section 9.06   Statements of Compliance from Servicer	87
	Section 9.07   Notices of Event of Default, Servicer Default or Rapid Amortization Event	88
	Section 9.08   Trustee’s Right to Examine Servicer Records, Audit Operations and Deliver Information
to Noteholders	88

 

    -iii-

     

    

 

TABLE OF CONTENTS

(continued)

 

	 	Page
	ARTICLE X TERMINATION	88
	Section 10.01   [Reserved]	88
	Section 10.02   Termination	88
	ARTICLE XI REMEDIES UPON MISREPRESENTATION;  REPURCHASE OPTION	89
	Section 11.01   Repurchases of, or Substitution for, Loans for Breach of Representations and Warranties	89
	Section 11.02   Reassignment of Repurchased or Substituted Loans	89
	ARTICLE XII INDEMNITIES	90
	Section 12.01 Indemnification by Servicer	90
	Section 12.02 Indemnification by Originator	91
	Section 12.03 Survival	91
	ARTICLE XIII MISCELLANEOUS	91
	Section 13.01   Amendment	91
	Section 13.02   Acts of God	92
	Section 13.03   Governing Law	92
	Section 13.04   Notices	93
	Section 13.05   Severability of Provisions	95
	Section 13.06   Third Party Beneficiaries	95
	Section 13.07   Counterparts	95
	Section 13.08   Headings	95
	Section 13.09   No Bankruptcy Petition; Disclaimer	95
	Section 13.10   Jurisdiction	96
	Section 13.11   No Partnership	96
	Section 13.12   Successors and Assigns	96
	Section 13.13   Acts of Holders	96
	Section 13.14   Duration of Agreement	96
	Section 13.15   Limited Recourse	96
	Section 13.16   Confidentiality	97
	Section 13.17   Non-Confidentiality of Tax Treatment	97

 

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TABLE OF CONTENTS

 

exhibits,
schedules and appendix

 

	 	 	Page
	Exhibit A	Form of Assignment	A-1
	Exhibit B	Form of Borrowing Base Certificate	B-1
	Exhibit C	Form of Closing Certificate of Servicer/Originator	C-1
	Exhibit D	Form of Liquidation Report	D-1
	Exhibit E	Servicer Officer’s Certificate	E-1
	Exhibit F	List of Loans	F-1
	Exhibit G	Form of Monthly Report	G-1
	Exhibit H-1	Form of Initial Certification	H-1
	Exhibit H-2	Form of Final Certification	H-2
	Exhibit I	Form of Request for Release of Documents	I-1
	Exhibit J	Initial Loans Criteria	J-1
	Exhibit K	Portfolio Profile Milestone Criteria	K-1

 

 

    -v-

     

    

 

SALE AND SERVICING AGREEMENT

 

THIS
SALE AND SERVICING AGREEMENT, dated as of June 1, 2018, is by and among:

 

		(1)	HORIZON FUNDING I, LLC, a limited liability company created and existing under the laws of the
State of Delaware (together with its successors and assigns, the “Issuer”);

 

		(2)	HORIZON SECURED LOAN FUND I LLC, a limited liability company created and existing under the laws
of the State of Delaware (together with its successors and assigns, the “Fund”), as the seller (together with
its successors and assigns, in such capacity, the “Seller”), and as the originator (together with its successors
and assigns, in such capacity, the “Originator”);

 

		(3)	HORIZON TECHNOLOGY FINANCE CORPORATION, a corporation created and existing under the laws of the
State of Delaware (together with its successors and assigns, the “BDC”), as the servicer (together with its
successors and assigns, in such capacity, the “Servicer”); and

 

		(4)	U.S. BANK NATIONAL ASSOCIATION (together with its successors and assigns, “U.S. Bank”),
not in its individual capacity but as the indenture trustee (together with its successors and assigns, in such capacity, the “Trustee”),
not in its individual capacity but as the backup servicer (together with its successors and assigns, in such capacity, the “Backup
Servicer”), not in its individual capacity but as the custodian (together with its successors and assigns in such capacity,
the “Custodian”), not in its individual capacity but as the lockbox bank (together with its successors and assigns
in such capacity, the “Lockbox Bank”) and not in its individual capacity but solely as securities intermediary
(together with its successors and assigns, in such capacity, the “Securities Intermediary”).

 

R E C I T A L S

 

WHEREAS,
in the regular course of its business, the Originator originates and/or otherwise acquires Loans (as defined herein);

 

WHEREAS,
on the Closing Date, the Originator will sell, convey and assign all its right, title and interest in the Initial Loan Assets and
certain other assets to the Issuer as provided herein;

 

WHEREAS,
on each Transfer Date, the Originator may sell, convey and assign all its right, title and interest in Subsequent Loan Assets and/or
Substitute Loan Assets, as applicable, and certain other assets to the Issuer as provided herein;

 

WHEREAS,
it is a condition to the Issuer’s acquisition of the Initial Loan Assets and any Subsequent Loan Assets and Substitute Loan
Assets from the Originator that the Originator make certain representations and warranties regarding the Loan Assets for the benefit
of the Issuer;

 

     

     

    

 

WHEREAS,
the Issuer is willing to purchase and accept assignment of the Loan Assets from the Originator pursuant to the terms hereof;

 

WHEREAS,
the Servicer is willing to service the Loan Assets for the benefit and account of the Issuer pursuant to the terms hereof; and

 

WHEREAS,
the Backup Servicer is willing to provide backup servicing for all such Loan Assets.

 

NOW,
THEREFORE, based upon the above recitals, the mutual premises and agreements contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

 

ARTICLE
I

DEFINITIONS

 

Section 1.01     
Definitions.

 

Whenever used in this
Agreement, the following words and phrases, unless the context otherwise requires, shall have the following meanings:

 

“1940 Act” means the
Investment Company Act of 1940, as amended.

 

“Adjusted Pool Balance”
means, as of any date of determination, the Aggregate Outstanding Loan Balance minus (a) the Excess Concentration Amounts and (b)
the aggregate Outstanding Loan Balance of all Delinquent Loans (other than such Delinquent Loans that are Defaulted Loans), Defaulted
Loans and Ineligible Loans required to be repurchased by the Originator pursuant to Section 11.01, in each case, as of such
date of determination and only to the extent not included in the Excess Concentration Amounts determined in clause (a).

 

“Administrative Expenses”
means fees and expenses (excluding amounts related to indemnification) due or accrued with respect to any Payment Date and payable
by the Issuer in the following order of priority:

 

(a)       to
any Person in respect of any governmental fee, charge or tax in relation to the Issuer;

 

(b)       to
the Trustee, the Custodian and the Lockbox Bank, (i) the Trustee Fee, (ii) any fees of the Custodian and the Lockbox Bank and any
additional fees, expenses or other amounts not to exceed $280,000 for any 12-month period and (iii) if a Successor Servicer is
being appointed, any Servicing Transfer Costs incurred by the Trustee;

 

(c)       to
the Backup Servicer, (i) the Backup Servicer Fee and (ii) any additional fees, expenses or other amounts not to exceed $20,000
for any 12-month period;

 

    2

     

    

 

(d)       to
the Independent Accountants, agents and counsel of the Issuer for fees and expenses including, but not limited to, audit fees and
expenses, and to the Servicer for expenses and other amounts (excluding the Servicing Fee, any Scheduled Payment Advances and any
Servicing Advances) payable under this Agreement;

 

(e)       to
the Trustee, for unpaid fees and expenses (including reasonable and documented fees and expenses of its agents and counsel) incurred
in the exercise of its rights and remedies on behalf of the Noteholders pursuant to Article V of the Indenture; and

 

(f)        to
Morningstar for its surveillance fees in relation to the Notes;

 

provided
that Administrative Expenses will not include (I) any amounts due or accrued with respect to the actions taken on or in connection
with the Closing Date, (II) any principal of or interest on any Notes or (III) amounts payable to the Trustee in respect of indemnification.

 

“Advance” means an advance
made by the Noteholders in accordance with the terms hereof and in the Note Funding Agreement.

 

“Advance Date” means
the date on which the Noteholders make an Advance to the Issuer in accordance with the terms hereof and in the Note Funding Agreement.

 

“Advance Rate” means
at any time:

 

(i)       if
the Collateral consists of Loans to less than five Distinct Obligors, 40%;

 

(ii)      if
the Collateral consists of Loans to five or more Distinct Obligors but less than ten Distinct Obligors, 50%;

 

(iii)     if
the Collateral consists of Loans to ten or more Distinct Obligors but less than 15 Distinct Obligors, 60%;

 

(iv)     if
the Collateral consists of Loans to 15 or more Distinct Obligors, 67%;

 

provided,
that notwithstanding the foregoing, the maximum Advance Rate for Second Lien Loans shall be 60%; provided further that if an Overcollateralization
Adjustment Event occurs, for the next Advance Date (or, if no Advance Date shall occur before the next Payment Date, for such Payment
Date), the applicable Advance Rate shall be reduced by 10 percentage points.

 

“Advance Request” means
a written notice in the form of Exhibit A to the Note Funding Agreement, to be used by the Issuer to request the funding
of an Advance.

 

“Affiliate” of any
specified Person means any other Person that, directly or indirectly, controls, is controlled by or is under common control
with such Person, or is a director or officer of such Person; provided that for purposes of determining whether an
Obligor is an Affiliate of another Obligor for purposes of determining the Advance Rate, Excess Concentration Amounts or
whether the Initial Loans Criteria or Portfolio Profile Milestone Criteria is satisfied, the term Affiliate shall not include
any Affiliate relationship which may exist solely as a result of direct or indirect ownership of, or control by, a common
owner which is a financial institution, fund or other investment vehicle which is in the business of making diversified
investments including investments independent from the Loans. For the purposes of this definition, “control”
(including the terms “controlling,” “controlled by” and “under common control with”),
when used with respect to any specified Person means the possession, direct or indirect, of the power to vote 25% or more of
the voting securities of such Person or to direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise. The Trustee may conclusively presume that a
Person is not an Affiliate of another Person unless a Responsible Officer of the Trustee has actual knowledge to the
contrary.

 

    3

     

    

 

“Agented Loan” means,
with respect to any Loan, (a) the Loan is originated or purchased by the Originator in accordance with the Operating Guidelines
as a part of a syndicated loan transaction that has been fully consummated prior to such Loan becoming part of the Collateral,
(b) the Issuer, as assignee of the Loan, has all of the rights (including without limitation voting rights) of the Originator with
respect to such Loan and the Originator’s right, title and interest in and to the Related Property, (c) the Loan is secured
by an undivided interest in the Related Property that also secures and is shared by, on a pro rata basis, all other holders of
such Obligor’s notes of equal priority issued in such syndicated loan transaction and (d) the Originator (or a wholly owned
subsidiary of the Originator) is the lead agent or collateral agent for all lenders in such syndicated loan transaction and receives
payment directly from the Obligor and may collect such payments on behalf of such lenders.

 

“Aggregate Outstanding Loan Balance”
means, as of any date, the sum of the Outstanding Loan Balance for each Loan owned by the Issuer.

 

“Aggregate Outstanding Note Balance”
means, as of any date of determination, the sum of the Outstanding Note Balances of the Notes on such date.

 

“Agreement” means this
Sale and Servicing Agreement, as amended, modified, waived, supplemented or restated from time to time in accordance with the terms
hereof.

 

“Amortization Period”
means the period commencing on the earlier of (i) the Investment Period Termination Date and (ii) the date of an Investment Period
Termination Event, and ending on the date the Aggregate Outstanding Note Balance and all related obligations have been reduced
to zero.

 

“Applicable Law” means,
for any Person or property of such Person, all existing and future applicable laws, rules, regulations (including proposed, temporary
and final income tax regulations), statutes, treaties, codes, ordinances, permits, certificates, orders and licenses of and interpretations
by any Governmental Authority (including, without limitation, usury laws, the Federal Truth in Lending Act, and Regulation Z and
Regulation B of the Board of Governors of the Federal Reserve System), 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.

 

    4

     

    

 

“Assignment” means each
Assignment, substantially in the form of Exhibit A hereto, relating to an assignment, transfer and conveyance of Loans and
the Related Property by the Originator to the Issuer.

 

“Available Funds” means,
with respect to any Payment Date, an amount equal to the sum of, without duplication, (a) Collections received during the related
Collection Period; (b) interest earned on and any other investment earnings with respect to funds on deposit in the Collection
Account during the related Interest Period; and (c) any Scheduled Payment Advances deposited into the Collection Account on the
related Reference Date.

 

“Backup Servicer” has
the meaning provided in the Preamble.

 

“Backup Servicer Fee”
shall be equal to the product of: (i) one-twelfth of 0.0475% (or, with respect to the first Collection Period, a fraction equal
to the number of days from and including the Closing Date through and including June 30, 2018 over 360) and (ii) the Aggregate
Outstanding Loan Balance as of the beginning of the related Collection Period; provided, however, that the Backup Servicer
Fee shall be no less than $3,500 per month, commencing when the Aggregate Outstanding Loan Balance is greater than zero at the
beginning of the related Collection Period.

 

“Bankruptcy Code” means
the United States Bankruptcy Reform Act of 1978 (11 U.S.C. § 101, et seq.), as amended from time to time.

 

“BDC” has the meaning
provided in the Preamble.

 

“Borrowing
Base” means (A) with respect to the Closing Date, (i) the product of the Advance Rate and the Adjusted Pool Balance
as of the Closing Date, (B) with respect to a Payment Date, the sum of (i) the product of the Advance Rate and the Adjusted Pool
Balance as of the last day of the related Collection Period and (ii) the amounts on deposit in the Principal Reinvestment Account
as of the last day of the related Collection Period and (C) with respect to an Advance Date, the sum of (i) the product of the
Advance Rate and the Adjusted Pool Balance as of the Business Day before the Issuer’s delivery of an Advance Request (assuming
the inclusion of any Subsequent Loans being conveyed on such Advance Date), and (ii) amounts constituting Principal Collections
on deposit in the Principal Reinvestment Account and the Collection Account as of the Business Day before the Issuer’s delivery
of an Advance Request.

 

“Borrowing Base Certificate”
means a certificate prepared and signed by a Responsible Officer of the Servicer in the form of Exhibit B hereto, including
a calculation of the Borrowing Base as of the relevant date of determination.

 

“Business Day” means
any day other than (a) a Saturday or Sunday or (b) a day on which banking institutions in New York, New York are authorized or
obligated by law or executive order to be closed.

 

“Cash Yield Rate” means,
with respect to a Loan, the stated interest rate on such Loan plus all Finance Charges and other earned fees.

 

    5

     

    

 

“Cleantech Loan” means,
any Loan made to an Obligor that is a company that provides products and services, including, but not limited to, alternative energy,
energy efficiency technologies, green building materials, water purification and waste recycling.

 

“Cleantech Obligor”
means an Obligor of a Cleantech Loan.

 

“Closing Date” means
June 1, 2018.

 

“Co-Agented Loan” means,
with respect to any Loan, (a) the Loan is originated or purchased by the Originator in accordance with the Operating Guidelines
as a part of a syndicated loan transaction that has been fully consummated prior to such Loan becoming part of the Collateral,
(b) the Issuer, as assignee of the Loan, has all of the rights (including without limitation voting rights) of the Originator with
respect to such Loan and the Originator’s right, title and interest in and to the Related Property, (c) the Loan is secured
by an undivided interest in the Related Property that also secures and is shared by, on a pro rata basis, all other holders of
such Obligor’s notes of equal priority issued in such syndicated loan transaction and (d) either (i) the Originator (or a
wholly owned subsidiary of the Originator) is a co-agent, collateral agent or paying agent in such syndicated loan transaction,
(ii) neither the Originator nor any other lender is deemed to be the collateral agent in such syndicate loan transaction, or (iii)
the Originator receives payment directly from the Obligor thereof on behalf of itself (but not on behalf of any other holders of
such Obligor’s notes) and no other holder of such Obligor’s notes (nor any affiliate thereof) is identified as the
lead agent, collateral agent or paying agent in such syndicated loan transaction.

 

“Code” means the Internal
Revenue Code of 1986, as amended, or any successor legislation thereto.

 

“Collateral” means,
as of any date, the “Indenture Collateral,” as such term is defined in the Indenture.

 

“Collection Account”
means the segregated account so designated and established and maintained pursuant to Section 7.03(a).

 

“Collection Period”
means (i) a period commencing on the first day of a calendar month and ending on the last day of such calendar month; provided
that, the initial Collection Period shall be the period commencing on the Closing Date and ending on the last day of the calendar
month in which the Closing Date occurs, and (ii) with respect to the Legal Final Payment Date, or any other date on which the full
principal amount of the Notes are paid in full, including any redemption date, the period commencing on the first day of the calendar
month and ending on such Legal Final Payment Date or such other date on which the full principal amount of the Notes are paid in
full, including any redemption.

 

“Collections” means
the aggregate of Interest Collections and Principal Collections.

 

“Commission” means the
United States Securities and Exchange Commission.

 

“Computer Records”
means the computer records generated by the Servicer that provide information relating to the Loans and that were used by the
Originator in selecting the Loans conveyed to the Issuer pursuant to Section 2.01 (and any Subsequent Loans or
Substitute Loans conveyed to the Issuer pursuant to Section 2.04 and Section 2.05, respectively).

 

    6

     

    

 

“Continued Errors” shall
have the meaning provided in Section 8.03(e).

 

“Contractual Obligation”
means, with respect to any Person, any provision of any securities issued by such Person or any indenture, contract, undertaking,
agreement, instrument or other document to which such Person is a party or by which it or any of its property is bound or is subject.

 

“Corporate Trust Office”
means, (i) for the purposes of Section 3.02 hereof, 111 E. Fillmore Ave, EP-MN-WS2N, St. Paul, MN 51007, Attention: Bondholder
Services – Horizon Funding I, LLC; and (ii) for all other purposes, 190 S. LaSalle St., 7th Floor, Chicago, IL
60603, Attention: Global Corporate Trust – Horizon Funding I, LLC, or, in each case, at such other address as the Trustee
may designate from time to time by notice to the Issuer, or the principal corporate trust officer of any successor Trustee at the
address designated by such successor by notice to the Issuer.

 

“Curtailment” means,
with respect to a Loan, any payment of principal received by the Issuer during a Collection Period as part of a payment allocable
to a Loan that is in excess of the principal portion of the Scheduled Payment due for such Collection Period and which is not intended
to satisfy the Loan in full, nor is intended to cure a delinquency including any accelerated amortization due to structural features
of the related Loan.

 

“Custodian” has the
meaning provided in the Preamble.

 

“Cutoff Date” means
June 1, 2018.

 

“Defaulted Loan” means
a Loan as to which the earliest of the following has occurred: (i) any payment, or any part of payment, due under such Loan (taking
into account any waivers or modifications granted by the Servicer on such Loans) has become 120 days or more delinquent; (ii) the
Servicer has foreclosed upon and sold the related collateral; (iii) the Servicer has determined in accordance with its customary
practices that the Loan is uncollectible or the final recoverable amounts have been received; or (iv) an Insolvency Event has occurred
with respect to such Obligor; provided, however, that any Loan which the Originator has repurchased pursuant to Section
11.01 will not be deemed to be a Defaulted Loan.

 

“Delinquent Loan” means
a Loan as to which any payment, or any part of payment, due under such Loan (taking into account any waivers or modifications granted
by the Servicer on such Loans) has become 60 days or more delinquent.

 

“Distribution Account”
means the segregated account so designated and established and maintained pursuant to Section 7.01.

 

“Distinct Obligor” means
any Obligor or, to the extent any two or more Obligors are Affiliates (subject to the proviso in the definition thereof), collectively,
such Obligors.

 

“Dollar” and “$”
means the lawful currency of the United States.

 

    7

     

    

 

“Eligible Deposit Account”
means either (a) a segregated account with a Qualified Institution, or (b) a segregated account with the corporate trust department
of a depository institution organized under the laws of the United States or any state of the United States or the District of
Columbia, or any domestic branch of a foreign bank, having corporate trust powers and acting as trustee for funds deposited in
the related account, so long as any of the securities of that depository institution has a credit rating from Morningstar (if rated
by Morningstar), Moody’s or S&P, in one of its generic rating categories that signifies investment grade.

 

“Eligible Loan” means
(i) on and as of the Cutoff Date, in the case of the Initial Loans, (ii) on and as of the related Subsequent Loan Cutoff Date,
in the case of any Subsequent Loan and (ii) on and as of the related Substitute Loan Cutoff Date, in the case of any Substitute
Loans, a Loan as to which each of the following is true:

 

(a)       such
Loan is current and is not a Restructured Loan;

 

(b)       such
Loan has been originated or purchased by the Originator in the ordinary course of the Originator’s business and has been
fully and properly executed by the parties thereto;

 

(c)       such
Loan provides for periodic payments of interest and/or principal in cash, which are due and payable on a monthly or quarterly basis;

 

(d)       such
Loan provides for, in the event that such Loan is prepaid in whole or in part, a prepayment that fully pays the principal amount
of such prepayment together with interest at the related Cash Yield Rate through the date of payment;

 

(e)       the
information provided to the Issuer and its assigns in respect of such Loan pursuant to the transaction documents is true and correct
in all material respects;

 

(f)       such
Loan satisfies in all material respects the requirements under the Operating Guidelines and was originated in accordance therewith;

 

(g)       such
Loan represents the legal, valid and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof
in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors’ rights generally and by general principles of equity;

 

(h)       the
related Obligor of such Loan is not the United States or any state thereof or from any agency, department or instrumentality of
the United States or any state thereof;

 

(i)        other
than any Second Lien Loans, immediately prior to its conveyance, transfer, contribution and assignment by the Originator to the
Issuer, such Loan is secured by a valid, binding and enforceable first priority perfected security interest (subject to Permitted
Liens) in favor of the Originator, in all of the assets of the Obligor pledged as collateral under the Underlying Loan Agreement,
which security interest has been assigned by the Originator to the Issuer, and by the Issuer to the Trustee;

 

    8

     

    

 

(j)        such
Loan is not subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the operation
of any of the terms of any contract, or the exercise of any right thereunder, will not render such contract unenforceable in whole
or in part or subject to any right of rescission, setoff, counterclaim or defense, including the defense of usury, and the Originator
has not received written notice of the assertion of any such right of rescission, setoff, counterclaim or defense asserted with
respect thereto;

 

(k)       such
Loan does not have liens or claims (other than Permitted Liens) that exist or have been filed for unpaid state or federal taxes
relating to collateral that are prior to, or equal or coordinate with, the security interest in such collateral created by the
related Loan contract, except for such liens or claims that have been waived or modified as permitted hereunder;

 

(l)        such
Loan is not a Delinquent Loan or a Defaulted Loan, and no default, breach, violation or event permitting acceleration under the
terms of any Loan contract has occurred with respect to such Loan, nor is there a continuing condition with respect to such Loan
that, with notice or the lapse of time or both, would constitute a default, breach, violation or event permitting acceleration
under the terms of any contract, except for such defaults, breaches, violations or events which have been waived or modified as
permitted under the Servicing Standard and the Operating Guidelines;

 

(m)       such
Loan does not relate to property that has been foreclosed upon;

 

(n)       such
Loan has not been sold, transferred, assigned or pledged to any person other than the Issuer and has not been discharged;

 

(o)       (x)
immediately prior to the transfer of such Loan to the Issuer, the Originator had good and marketable title to such Loan and, immediately
upon such transfer, the Issuer shall have good and marketable title to such Loan and (y) except with respect to any Second Lien
Loan, immediately prior to the transfer of such Loan to the Issuer, such Loan was free and clear of all liens, encumbrances, security
interests and rights of others (other than Permitted Liens) and, immediately upon such transfer, such Loan shall be free and clear
of all liens, encumbrances, security interests and rights of others;

 

(p)       such
Loan has been perfected against the related Obligor by all necessary action under the relevant UCC, Personal Property Security
Act, or other applicable statutes existing in jurisdictions in Canada that do not use the Personal Property Security Act, or other
applicable law;

 

(q)       such
Loan has not been originated in, and is not subject to the laws of, any jurisdiction under which the sale, transfer, assignment
and conveyance of such contract under this Agreement or the pledge of such Loan under the Indenture is unlawful, void or voidable;

 

(r)       other
than with respect to Noteless Loans and Participated Loans, such Loan has only one original executed promissory note for each note
relating to such Loan;

 

(s)       such
Loan was not due from an Obligor that was the subject of a proceeding under the Bankruptcy Code or was bankrupt;

 

    9

     

    

 

(t)        such
Loan had a Cash Yield Rate of at least 9% per annum;

 

(u)       the
Required Loan Documents relating to such Loan have been delivered to the Custodian prior to the Closing Date or Transfer Date,
as applicable; provided that, to the extent any originals of documents contained in the Required Loan Documents are required
by Section 2.09(b) to be delivered following the related Transfer Date, such originals have been delivered on or prior to
the date set forth in Section 2.09(b);

 

(v)       such
Loan is due from an Obligor with its headquarters, principal place of business and primary operations in the United States or Canada
(but not Quebec);

 

(w)       such
Loan is payable in U.S. Dollars;

 

(x)       such
Loan has a Risk Rating as set forth in the Operating Guidelines;

 

(y)       such
Loan has an original LTV of no more than 40%;

 

(z)       if
the Loan is an Agented Loan, Co-Agented Loan or a Third Party Agented Loan:

 

(i)       if
the entity serving as the collateral agent of the security for all notes of the Obligor issued under the applicable Underlying
Loan Agreement has changed from the time of the origination of the Loan, all appropriate assignments of the collateral agent’s
rights in and to the collateral on behalf of the holders of the indebtedness of the Obligor under such facility have been executed
and filed or recorded as appropriate prior to such Loan becoming a part of the Collateral;

 

(ii)      all
required notifications, if any, have been given to the collateral agent, the paying agent and any other parties required by the
Underlying Loan Agreement of, and all required consents, if any, have been obtained with respect to, the Originator’s assignment
of such Loan and the Originator’s right, title and interest in the Related Property to the Issuer and the Trustee’s
security interest therein on behalf of the Noteholders;

 

(iii)     except
as otherwise provided in the related intercreditor agreement, the right to control certain actions of and replace the collateral
agent and/or the paying agent of the Obligor’s indebtedness under the facility is to be exercised by at least a majority
in interest of all holders of such indebtedness; and

 

(iv)     all
indebtedness of the Obligor of the same priority within each facility is cross-defaulted, the Related Property securing such
indebtedness is held by the collateral agent for the benefit of all holders of such indebtedness and all holders of such
indebtedness (A) have an undivided pari passu interest in the collateral securing such indebtedness, (B) share in
the proceeds of the sale or other disposition of such collateral on a pro rata basis and (C) may transfer or assign
their right, title and interest in the Related Property;

 

    10

     

    

 

(aa)     such Loan has
an original term to maturity of no more than 60 months;

 

(bb)    the stated maturity
of such Loan is not later than the Legal Final Payment Date; and

 

(cc)     the Loan is characterized
under the Originator’s Operating Guidelines as Technology Loan, a Healthcare Loan, a Life Sciences Loan or a Cleantech Loan.

 

“Error” shall have the
meaning provided in Section 8.03(e).

 

“Event of Default” shall
have the meaning specified in Section 5.01 of the Indenture.

 

“Excess Concentration Amounts”
means, as of any date of determination, the sum of (without duplication):

 

(a)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to Technology Obligors that exceeds 70% of the Aggregate
Outstanding Loan Balance;

 

(b)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to Life Sciences Obligors that exceeds 70% of the
Aggregate Outstanding Loan Balance;

 

(c)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to Healthcare Obligors that exceeds 50% of the Aggregate
Outstanding Loan Balance;

 

(d)      The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to Life Sciences Obligors and Healthcare Obligors
that exceeds 70% of the Aggregate Outstanding Loan Balance;

 

(e)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to a Cleantech Obligor that exceeds 10% of the Aggregate
Outstanding Loan Balance;

 

(f)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to a Distinct Obligor during the Ramp-Up Period that
exceeds 14% of the Aggregate Outstanding Loan Balance;

 

(g)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to the five largest Distinct Obligors during the Ramp-Up
Period that exceeds 60% of the Aggregate Outstanding Loan Balance;

 

(h)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to a Distinct Obligor after the Ramp-Up Period that
exceeds 10% of the Aggregate Outstanding Loan Balance;

 

    11

     

    

 

(i)        The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to the five largest Distinct Obligors after the Ramp-Up
Period that exceeds 35% of the Aggregate Outstanding Loan Balance;

 

(j)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans made to the ten largest Distinct Obligors following a Ramp-Up
Period that exceeds 60% of the Aggregate Outstanding Loan Balance;

 

(k)      The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans for which the related Underlying Loan Agreements require
the related Obligor to make payments of interest or principal less frequently than monthly that exceeds 15% of the Aggregate Outstanding
Loan Balance;

 

(l)       The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans that have more than 25% of their original Outstanding Loan
Balance due at maturity that exceeds 20% of the Aggregate Outstanding Loan Balance;

 

(m)     The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans that have an interest only period greater than 24 months
that exceeds 15% of the Aggregate Outstanding Loan Balance;

 

(n)      The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans that have a weighted average LTV that is greater than 25%;

 

(o)      The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans that are Second Lien Loans that exceeds 65% of the Aggregate
Outstanding Loan Balance; and

 

(p)      The
pro rata portion of the aggregate Outstanding Loan Balance of all Loans that are Restructured Loans and, without duplication, Loans
that have been subject to a Material Modification, that exceeds 15% of the Aggregate Outstanding Loan Balance.

 

“Exchange Act” means
the Securities Exchange Act of 1934, as amended.

 

“Excluded Property”
means (a) any amount received by, on or with respect to any Loan in the Collateral, which amount is attributable to the payment
of any tax, fee or other charge imposed by any Governmental Authority on such Loan, (b) any amount representing escrows relating
to taxes, insurance and other amounts in connection with any Loan for the benefit of the related Obligor and the secured party,
(c) any origination fee retained by the Originator in connection with the origination of any Loan or (d) any amendment fee retained
by the Originator in connection with the amendment of any Loan.

 

“FDIC” means the Federal
Deposit Insurance Corporation and any successor thereto.

 

“Finance Charges” means,
with respect to any Loan, any interest or finance charges owing by an Obligor pursuant to or with respect to such Loan.

 

    12

     

    

 

“Foreclosed Property”
means Related Property acquired by the Issuer or a subsidiary thereof for the benefit of the Noteholders in foreclosure or by deed
in lieu of foreclosure or by other legal process.

 

“Foreclosed Property Disposition”
means the final sale of a Foreclosed Property or of Repossessed Property. The proceeds of any “Foreclosed Property Disposition”
constitute part of the definition of Liquidation Proceeds.

 

“Fund” has the meaning
provided in the Preamble.

 

“General Reserve Account”
means the segregated account so designated and established and maintained pursuant to Section 7.02(a).

 

“General Reserve Account Required
Balance” means, as of any Payment Date, an amount equal to 0.75% of the Aggregate Outstanding Note Balance on such date
after taking into account all amounts applied to the Aggregate Outstanding Note Balance on such date.

 

“General Reserve Available Funds”
means all amounts deposited into the Collection Account from the General Reserve Account pursuant to Section 7.02.

 

“Governmental Authority”
means, with respect to any Person, any nation or government, any state or other political subdivision thereof, any central bank
(or similar monetary or regulatory authority) thereof, any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and any court or arbitrator having jurisdiction over such Person or its property.

 

“Healthcare Loan” means
a Loan made to an Obligor that provides products and services including, but not limited to new diagnostics, medical records, and
service and patient management software.

 

“Healthcare Obligor”
means an Obligor of a Healthcare Loan.

 

“Indenture” means the
Indenture, dated as of the date hereof, among the Issuer, the Securities Intermediary and the Trustee, as such agreement may be
amended, modified, waived, supplemented or restated from time to time.

 

“Independent” means,
when used with respect to any specified Person, the Person (a) is in fact independent of the Issuer, any other obligor on the Notes
and any Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any material indirect financial
interest in the Issuer, any such other obligor or any Affiliate of any of the foregoing Persons and (c) is not connected with the
Issuer, any such other obligor or any Affiliate of any of the foregoing Persons as an officer, employee, trustee, partner, director
or person performing similar functions.

 

“Independent Accountants”
shall have the meaning provided in Section 9.05.

 

“Industry Group” means
either (i) Biotechnology and Pharmaceuticals or (ii) Healthcare Services and Medical Devices, each as defined and determined in
accordance with the Operating Guidelines.

 

    13

     

    

 

“Ineligible Loan” shall
have the meaning provided in Section 11.01.

 

“Initial Advance” means
the initial Advance made by the Noteholders on the Closing Date pursuant to the Note Funding Agreement to the Issuer in respect
of the Initial Loans.

 

“Initial Loan Assets”
means any assets acquired by the Issuer from the Originator on the Closing Date pursuant to Section 2.01, which assets shall
include the Originator’s right, title and interest in the following:

 

(i)        the
Initial Loans listed in the initial List of Loans, all payments paid in respect thereof and all monies due, to become due or paid
in respect thereof accruing on and after the Cutoff Date and all Insurance Proceeds, Liquidation Proceeds and other recoveries
thereon, in each case as they arise after the Cutoff Date;

 

(ii)       all
security interests and Liens and Related Property subject thereto from time to time purporting to secure payment by Obligors under
such Loans;

 

(iii)      all
guaranties, indemnities and warranties, and other agreements or arrangements of whatever character from time to time supporting
or securing payment of such Loans;

 

(iv)     all
collections and records (including Computer Records) with respect to the foregoing;

 

(v)      all
documents relating to the applicable Loan Files; and

 

(vi)     all
income, payments, proceeds and other benefits of any and all of the foregoing, including but not limited to, all accounts, cash
and currency, chattel paper, electronic chattel paper, tangible chattel paper, copyrights, copyright licenses, equipment, fixtures,
general intangibles, instruments, commercial tort claims, deposit accounts, inventory, investment property, letter of credit rights,
software, supporting obligations, accessions, and other property consisting of, arising out of, or related to the foregoing.

 

“Initial Loans” means
those Loans conveyed to the Issuer on the Closing Date and identified for inclusion in the Collateral on the initial List of Loans
required to be delivered pursuant to Section 2.02(d).

 

“Initial Loans Criteria”
means the criteria set forth in Exhibit J hereto.

 

“Initial Purchasers”
shall have the meaning set forth in the Note Funding Agreement.

 

    14

     

    

 

“Insolvency Event”
means, with respect to a specified Person, (i) the filing of a decree or order for relief by a court having jurisdiction in
the premises in respect of such Person or any substantial part of its property in an involuntary case under any applicable
Insolvency Law now or hereafter in effect, or the appointment of a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official for such Person or for any substantial part of its property, or the ordering of the
winding-up or liquidation of such Person’s affairs, which decree or order shall remain unstayed or undismissed and in
effect for a period of 45 consecutive days; or (ii) the commencement by such Person of a voluntary case under any applicable
Insolvency Law now or hereafter in effect, or the consent by such Person to the entry of an order for relief in an
involuntary case under any such law, or the consent by such Person to the appointment of or the taking of possession by a
receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for any substantial
part of its property, or the making by such Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due, or the taking of action by such Person in furtherance of any
of the foregoing.

 

“Insolvency Laws” means
the Bankruptcy Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership,
insolvency, reorganization, suspension of payments, or similar debtor relief laws from time to time in effect affecting the rights
of creditors generally.

 

“Insolvency Proceeding”
means any case, action or proceeding before any court or other Governmental Authority relating to any Insolvency Event.

 

“Insurance Policy” means,
with respect to any Loan, an insurance policy covering liability and physical damage to or loss of the applicable Related Property,
including, but not limited to, title, hazard, life, accident and/or flood insurance policies.

 

“Insurance Proceeds”
means any amounts payable or any payments made on or with respect to a Loan or the Related Property under any Insurance Policy
which are not applied or paid by the Obligor, the Servicer or, in the case of Co-Agented Loans or Third Party Agented Loans, the
party primarily responsible for servicing such Loans, as applicable, to the restoration or repair of the Related Property or released
to the Obligor, another creditor or any other Person in accordance with the Applicable Law, the Required Loan Documents, the Operating
Guidelines, the Servicing Standard and this Agreement, net of costs of collection.

 

“Interest Amount” means,
for each Interest Period, the sum of (A) product of (i) the Interest Rate for each day during such Interest Period, (ii) the Aggregate
Outstanding Note Balance on such day (giving effect to Advances funded and Investment Period Principal Distribution Amounts applied),
and (iii) 1/365, and (B) all unpaid Interest Shortfalls from any prior Payment Dates (and interest accrued thereon at the Interest
Rate).

 

“Interest Collections”
means the aggregate of:

 

(a)       amounts
deposited into the Collection Account in respect of:

 

(i)       all
payments received on or after the Cutoff Date on account of interest on the Initial Loans (including Finance Charges and fees)
and all late payment, default and waiver charges;

 

(ii)      all
payments received on or after the Subsequent Loan Cutoff Date in the case of any Subsequent Loans and the applicable
Substitute Loan Cutoff Date in the case of any Substitute Loans on account of interest of such Loans (including Finance
Charges and fees) and all late payment, default and waiver charges; and

 

    15

     

    

 

(iii)      the
interest portion of any amounts received (x) in connection with the purchase or repurchase of any Loan and (y) as Scheduled Payment
Advances (if any); plus

 

(b)       investment
earnings on funds invested in Permitted Investments in the Collection Account; minus

 

(c)       the
amount of any losses incurred in connection with investments in Permitted Investments in the Collection Account.

 

“Interest Period” means,
with respect to (i) the first Payment Date, the period from and including the Closing Date to but excluding July 10, 2018, (ii)
any Payment Date thereafter other than the Legal Final Payment Date, the period from and including the 10th day of the
calendar month in which the prior Payment Date occurred to but excluding the 10th day of the calendar month in which
such Payment Date occurs and (iii) the Legal Final Payment Date or any other date on which the full principal amount of the Notes
are paid in full, including any redemption date, the period from and including the 10th day of the calendar month in
which the prior Payment Date occurred to but excluding the Legal Final Payment Date or such other date on which the full principal
amount of the Notes are paid in full, including any redemption.

 

“Interest Rate” means
the Pricing Benchmark plus (i) 2.75% at the time of any Advance when the Notes have a rating of no lower than “A” from
the Rating Agency, (ii) 2.92% at the time of any Advance when the Notes have a rating of “A-“ from the Rating Agency,
(iii) 3.08% at the time of any Advance when the Notes have a rating of “BBB+” from the Rating Agency and (iv) 3.25%
at the time of any Advance when the Notes have a rating of no lower than “BBB” but lower than “BBB+” from
the Rating Agency; provided that on any Advance Date, the Interest Rate will be reset as (A) the sum of (1) the Interest
Rate multiplied by the Aggregate Outstanding Note Balance, in each case, in effect immediately prior to such Advance Date and (2)
the Interest Rate calculated on such Advance Date multiplied by the principal amount of the Advance made on such Advance Date,
divided by (B) the Aggregate Outstanding Note Balance taking into account the Advance made on such Advance Date; provided that
the Interest Rate on the Notes will increase by 1.25% at any time the rating of the Notes is below investment grade.

 

“Interest Shortfall”
means, with respect to the Notes and any Payment Date, as applicable, an amount equal to the excess, if any, of (a) the related
Interest Amount over (b) the amount of interest actually paid to the Notes on such Payment Date.

 

“Investment Period”
means the period commencing on the Closing Date and ending on the Investment Period Termination Date.

 

“Investment Period Principal Distribution
Amount” means the amount determined by the Servicer pursuant to Section 5.16 that will be paid to the Noteholders
during the Investment Period as a payment of principal.

 

    16

     

    

 

“Investment Period Termination
Date” means the earliest to occur of (i) June 1, 2020, (ii) June 1, 2021 upon the mutual agreement of the Noteholders
and the Fund, or such later date as may be mutually agreed by the Noteholders and the Fund with Rating Agency Confirmation, (iii)
the date on which an Investment Period Termination Event has occurred or (iv) the Portfolio Profile Milestone Test Date, if the
Loans do not satisfy the Portfolio Profile Milestone Criteria as of such date, unless waived by the Majority Noteholders.

 

“Investment Period Termination
Event” means (i) the Aggregate Outstanding Loan Balance of all Defaulted Loans minus the Liquidation Proceeds divided
by the original Aggregate Outstanding Loan Balance of all Loans exceeds 8% from the Closing Date, or (ii) the occurrence of a Rapid
Amortization Event.

 

“Issuer” has the meaning
provided in the Preamble.

 

“Issuer LLC Agreement”
means that certain amended and restated limited liability company agreement dated June 1, 2018 as may be amended from time to time.

 

“Legal Final Payment Date”
means (i) the Payment Date occurring in June 2025 or (ii) if the Investment Period is extended pursuant to clause (ii) the definition
of “Investment Period Termination Date”, the Payment Date occurring in June 2026.

 

“Lien” means any pledge,
hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever, including, without limitation, any conditional sale or
other title retention agreement, and any financing lease having substantially the same economic effect as any of the foregoing
(including any UCC financing statement or any similar instrument filed against a Person’s assets or properties).

 

“Life Sciences Loan”
means a Loan made to an Obligor that provides products and services including, but not limited to, medical devices, biopharmaceuticals,
drug discovery and drug delivery.

 

“Life Sciences Obligor”
means an Obligor of a Life Sciences Loan.

 

“Liquidation Expenses”
means, with respect to any Loan, the aggregate amount of all out-of-pocket expenses reasonably incurred by the Servicer and any
reasonably allocated costs of counsel (if any), in each case in accordance with the Servicer’s customary procedures in connection
with the repossession, refurbishing and disposition of any Related Property securing such Loan upon or after the expiration or
earlier termination of such Loan and other out-of-pocket costs related to the liquidation of any such Related Property, including
the attempted collection of any amount owing pursuant to such Loan if it is a Defaulted Loan, and, if requested by the Trustee,
the Servicer must provide to the Trustee a breakdown of the Liquidation Expenses for any Loan along with any supporting documentation
therefor.

 

“Liquidation Proceeds”
means, with respect to any Defaulted Loan, whatever is receivable or received when such Loan or the Related Property is sold, liquidated,
foreclosed, exchanged, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes all amounts
representing late fees and penalties relating thereto net of, without duplication, (a) Liquidation Expenses relating
to such Loan or Related Property reimbursed to the Servicer therefrom pursuant to the terms of this Agreement and (b) amounts required
to be released to other creditors, including any other costs, expenses and taxes, or the related Obligor or grantor pursuant to
applicable law or the governing Required Loan Documents.

 

    17

     

    

  

“Liquidation Report”
shall have the meaning provided in Section 5.03(d).

 

“List of Loans” means
the list identifying each Loan constituting part of the Loan Assets, which list shall consist of the initial List of Loans reflecting
the Initial Loans transferred to the Issuer on the Closing Date, together with any Subsequent List of Loans amending the most current
List of Loans reflecting any Subsequent Loans or Substitute Loans transferred to the Issuer on a Transfer Date (together with,
if applicable, a deletion from such list of the related Loan or Loans with respect to which a Substitution Event has occurred),
and which list in each case (a) identifies by account number each Loan included in the Collateral, and (b) sets forth as to each
such Loan (i) the Outstanding Loan Balance as of the Cutoff Date in the case of the Initial Loans and the related Transfer
Date in the case of Subsequent Loans or Substitute Loans, as applicable, (ii) the maturity date, (iii) the Loan Type, (iv) whether
such Loan is a Co-Agented Loan or Third-Party Agented Loan (and the name of the agent thereunder), (v) whether such Loan is a Noteless
Loan or a Participated Loan, and (vi) whether evidence of filing of UCC-1 financing statements naming the Originator as secured
party with respect to such Loan are available, and which list (as in effect on the Closing Date) is attached to this Agreement
as Exhibit F.

 

“Loan” means, to the
extent transferred by the Originator to the Issuer, an individual loan to an Obligor, or portion thereof made by the Originator
including, but not limited to, Agented Loans, Co-Agented Loans, Third Party Agented Loans and Participated Loans; provided
that no Loan shall include any Excluded Property.

 

“Loan Assets” means,
collectively and as applicable, the Initial Loan Assets, the Subsequent Loan Assets and the Substitute Loan Assets.

 

“Loan File” means, with
respect to any Loan and Related Property, each of the Required Loan Documents and duly executed originals (to the extent indicated
on the List of Loans) and copies (including electronic copies) of any other Records relating to such Loan and Related Property.

 

“Loan Rate” means, for
each Loan and Collection Period, the current cash pay interest rate for such Loan in such period, as specified in the related Underlying
Note or related Required Loan Documents.

 

“Loan Type” with respect
to any Loan, means the characterization of such Loan as a Technology Loan, a Life Sciences Loan, a Healthcare Loan or a Cleantech
Loan.

 

“Lockbox Account” means
the segregated account so designated and established and maintained pursuant to Section 7.01(a).

 

“Lockbox Bank” shall
have the meaning provided in Section 7.01(a).

 

    18

     

    

 

“LTV” shall means with
respect to any Loan, the Outstanding Loan Balance of the Loan divided by the market value of such Loan or the underlying assets
securing such Loan, expressed as a percentage.

 

“Majority Noteholders”
means, as of any date of determination, the Noteholders evidencing at least 51% of the Aggregate Outstanding Note Balance of all
Notes (voting as a single class).

 

“Material Modification”
means any amendment or waiver of, or modification or supplement to, the Underlying Loan Agreement governing such Loan as a result
of the related Obligor financial under-performance or the related Obligor credit-related concerns which:

 

(a)              
reduces or forgives any or all of the principal amount due under such Loan;

 

(b)               (i)
waives one or more interest payments (other than any incremental interest accrued due to a default or event of default with
respect to such Loan), (ii) permits any interest due in cash to be deferred or capitalized and added to the principal amount
of such Loan or (iii) reduces the spread or coupon payable on such Loan unless such reduction (when taken together with all
other reductions with respect to such Loan) is by less than 10% of the spread or coupon payable at the time of the initial
funding;

 

(c)              
either (i) extends the maturity date of such Loan by more than 120 days past the maturity date as of the initial funding
or (ii) extends the amortization schedule with respect thereto;

 

(d)              
substitutes, alters or releases the Underlying Notes related to such Loan, and such substitution, alteration or release,
individually or in the aggregate and as determined with reasonable discretion, materially and adversely affects the value of such
Loan; or

 

(e)               waives
any other material requirement under such Underlying Loan Agreement; provided that no Material Modification may extend the
maturity of any Loan beyond the Legal Final Payment Date.

  

“Monthly Report” shall
have the meaning provided in Section 9.01.

 

“Moody’s” means
Moody’s Investors Service, Inc. and any successor thereto.

 

“Morningstar” means
Morningstar Credit Ratings, LLC and any successor thereto.

 

“Nonrecoverable Advance”
means any Scheduled Payment Advance or Servicing Advance, as applicable, previously made in respect of a Loan or any Related Property
that, as determined by the Servicer in its reasonable, good faith judgment, will not be ultimately recoverable from subsequent
payments or collections with respect to the applicable Loan including, without limitation, payments or reimbursements from the
related Obligor, Insurance Proceeds or Liquidation Proceeds on or in respect of such Loan or Related Property.

 

    19

     

    

 

“Note” means any one
of the notes of the Issuer, executed and authenticated in accordance with the Indenture.

 

“Note Funding Agreement”
means that certain Note Funding Agreement, dated as of the date hereof, between the Issuer and the Initial Purchasers, as such
agreement may be amended, modified, waived, supplemented or restated from time to time.

 

“Note Register” shall
have the meaning provided in Section 4.02(a) of the Indenture.

 

“Noteholder” or “Holder”
means each Person in whose name a Note is registered in the Note Register; provided that an Owner of a Note shall be deemed
a Holder of such Note as provided in Section 13.13.

 

“Noteless Loan” means
any Loan that, pursuant to the terms of the related credit agreement (or equivalent document), is not evidenced by a promissory
note.

 

“Notice of Substitution”
shall have the meaning provided in Section 2.07.

 

“Obligor” means, with
respect to any Loan, any Person or Persons obligated to make payments pursuant to or with respect to such Loan, including any guarantor
thereof, but excluding, in each case, any such Person that is an obligor or guarantor that is in addition to the primary obligors
or guarantors with respect to the assets, cash flows or credit of which the related Loan is principally underwritten.

 

“Officer’s Certificate”
means a certificate delivered to the Trustee signed by a Responsible Officer of (i) the Originator, or (ii) the Servicer, or (iii)
any other Person acting on behalf of the Issuer, as required by this Agreement or any other Transaction Document.

 

“Operating Guidelines”
means the written operating guidelines (which covers credit, collection and servicing policies and procedures) of the Originator
and the initial Servicer in effect on the Cutoff Date, as amended or supplemented from time to time in accordance with Section
5.02(l), a copy of which has been provided to the Issuer and the Trustee; and, with respect to any Successor Servicer, the
written collection policies and procedures of such Person at the time such Person becomes a Successor Servicer.

 

“Opinion of Counsel”
means a written opinion of counsel, who may be outside counsel, or internal counsel (except with respect to federal securities
law, tax law, bankruptcy law or UCC matters), for the Issuer, the Originator or the Servicer, including Dechert LLP or other counsel
reasonably acceptable to the Trustee.

 

“Optional Redemption”
means a redemption of the Notes pursuant to Section 10.01 of the Indenture.

 

“Originator” shall have
the meaning provided in the Preamble.

 

“Outstanding” shall
have the meaning provided in Section 1.01 of the Indenture.

 

    20

     

    

 

 

 

“Outstanding Loan Balance”
means, as of any date of determination with respect to a Loan, the outstanding principal amount of such Loan.

 

“Outstanding Note Balance”
means, as of any date of determination with respect to any Notes, (i) the original principal amount of such Notes on the Closing
Date, plus (ii) any Advances made by the Noteholders after the Closing Date minus (iii) all amounts paid by the Issuer with respect
to such principal amount up to such date.

 

“Overcollateralization Adjustment
Event” will be deemed to have occurred if (i) the aggregate Outstanding Loan Balance of all Delinquent Loans exceeds
15% of the Aggregate Outstanding Loan Balance as of the last day of the most recent Collection Period (if related to a Payment
Date) or the Business Day prior to an Advance Date (if related to an Advance Date), or, without duplication, (ii) the aggregate
Outstanding Loan Balance of Defaulted Loans exceeds 10% of the Aggregate Outstanding Loan Balance as of the last day of the most
recent Collection Period (if related to a Payment Date) or the third (3rd) Business Day prior to an Advance Date (if
related to an Advance Date).

 

“Owner” shall have the meaning
provided in the Indenture.

 

“Participated Loans”
means the Loans in which the Originator holds a participation interest as of the Closing Date or the related Transfer Date (if
after the Closing Date), as the case may be, which interest has been assigned to the Issuer pursuant to this Agreement.

 

“Payment Date” means
the tenth (10th) day of each month, commencing July 10, 2018, or if such day is not a Business Day, on the next succeeding
Business Day.

 

“Percentage Interest”
means, for the Holder of any Note of any class, the fraction, expressed as a percentage, the numerator of which is the then current
Outstanding Note Balance represented by such Note and the denominator of which is the then current Aggregate Outstanding Note Balance.

 

“Permitted Distributions”
means with respect to each taxable year, distributions to the Servicer in an amount equal (in the aggregate) to (a) the sum of
(i) the Servicer’s “investment company taxable income” (within the meaning of Section 852(b)(2) of the IRC),
determined without regard to Section 852(b)(2)(D) of the IRC, and (ii) the excess of the Servicer’s interest income excludable
from gross income under Section 103(a) of the IRC over its deductions disallowed under Sections 265 or 171(a)(2) of the IRC, in
each case recognized by the Servicer in respect of its ownership of the Borrower for U.S. federal income tax purposes, as certified
by the Servicer and the Borrower to the Noteholders in a written notice setting forth the calculation thereof, minus (b) the sum
of any distributions previously made to the Servicer under this Agreement in respect of taxes each such taxable year.

 

“Permitted Investments”
means on any date of determination, book-entry securities, negotiable instruments or securities represented by instruments in bearer
or registered form with maturities not exceeding the next Payment Date that evidence:

 

(i)       direct
obligations of, and obligations fully guaranteed by, the United States or any agency or instrumentality of the United States;

 

    21

     

    

 

(ii)       demand
deposits, time deposits or certificates of deposit of any depository institution (including any affiliate of the Servicer or the
Trustee) or trust company incorporated under the laws of the United States or any state thereof or the District of Columbia
(or any domestic branch of a foreign bank) and subject to supervision and examination by Federal or state banking or depository
institution authorities (including depository receipts issued by any such institution or trust company as custodian with respect
to any obligation referred to in clause (i) above or a portion of such obligation for the benefit of the holders of such
depository receipts); provided that at the time of the investment or contractual commitment to invest therein (which shall
be deemed to be made again each time funds are reinvested following each Payment Date), the commercial paper or other short-term
senior unsecured debt obligations (other than such obligations the rating of which is based on the credit of a person other than
such depository institution or trust company) of such depository institution or trust company shall have a credit rating from Moody’s
of “P-1” or the equivalent by Morningstar;

 

(iii)       commercial
paper (including commercial paper of any affiliate of the Servicer or the Trustee) having, at the time of the investment or contractual
commitment to invest therein, a rating from Moody’s of “P-1” or the equivalent by Morningstar;

 

(iv)       investments
in money market funds (including funds for which the Servicer or the Trustee or any of their respective affiliates is investment
manager or advisor) having a rating from Moody’s of “Aaa (mf)” or the equivalent by Morningstar;

 

(v)        banker’s
acceptances issued by any depository institution or trust company referred to in clause (ii) above; and

 

(vi)       repurchase
obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States or any agency
or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States, in either case
entered into with a depository institution or trust company (acting as principal) referred to in clause (ii) above.

 

The Trustee may purchase from or sell to
itself or an Affiliate, as principal or agent, the Permitted Investments described above.

 

“Permitted Liens” means:

 

(i)       with
respect to the interest of the Originator and the Issuer in the Loans included in the Collateral: (a) Liens in favor of the
Issuer created pursuant to this Agreement, and (b) Liens in favor of the Trustee created pursuant to the Indenture and/or
this Agreement, (c) Second Lien Loans; and

 

    22

     

    

 

(ii)       with
respect to the interest of the Originator and the Issuer in the Related Property: (a) materialmen’s, warehousemen’s,
mechanics’ and other Liens arising by operation of law in the ordinary course of business for sums not due or sums that are
being contested in good faith, (b) purchase money security interests in certain items of equipment, (c) Liens for state, municipal
and other local taxes if such taxes shall not at the time be due and payable or the validity or amount thereof is currently being
contested by an appropriate Person in good faith by appropriate proceedings, (d) other customary Liens permitted with respect thereto
consistent with the Operating Guidelines or the Servicing Standard, (e) Liens in favor of the Issuer created by the Originator
pursuant to this Agreement, (f) Liens in favor of the Trustee created pursuant to the Indenture and/or this Agreement, and (g)
with respect to Agented Loans, Co-Agented Loans and Third Party Agented Loans, Liens in favor of the lead agent, the collateral
agent or the paying agent on behalf of all holders of indebtedness of such Obligor under the related facility.

 

“Person” means any individual,
corporation, estate, partnership, business or statutory trust, limited liability company, sole proprietorship, joint venture, association,
joint stock company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or political
subdivision thereof or other entity.

 

“Portfolio Profile Milestone Test
Date” means, each of (i) the last day of the Collection Period for the Payment Date occurring in June 2019 and (ii) the
last day of the Collection Period for the Payment Date occurring in June 2020.

 

“Portfolio Profile Milestone Criteria”
means the criteria set forth in Exhibit K hereto.

 

“Predecessor Servicer Work Product”
shall have the meaning provided in Section 8.03(e).

 

“Prepayments” means
any and all (a) prepayments, including prepayment premiums, on or with respect to a Loan (including, with respect to any Loan and
any Collection Period, any Scheduled Payment, Finance Charge or portion thereof that is due in a subsequent Collection Period that
the Servicer has received and expressly permitted the related Obligor to make in advance of its scheduled due date, and that will
be applied to such Scheduled Payment on such due date), (b) Liquidation Proceeds, and (c) Insurance Proceeds.

 

“Pricing Benchmark”
means with respect to any Advance Date, the Three Year USD mid-market swap rate as mutually agreed by the Servicer and the Noteholders
at 11:00 A.M. New York City time on the Business Day immediately preceding such Advance Date.

 

“Principal
Collections” means amounts deposited into the Collection Account in respect of payments received on or after the
Cutoff Date in the case of the Initial Loans and the applicable Subsequent Loan Cutoff Date in the case of any Subsequent
Loans and the applicable Substitute Loan Cutoff Date in the case of any Substitute Loans on account of principal of the
Loans, including (without duplication):

 

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(a)       the
principal portion of:

 

(i)       any
Scheduled Payments and Prepayments; and

 

(ii)       any
amounts received (1) in connection with the purchase or repurchase of any Loan (other than interest on Loans accrued to the date
of purchase) and (2) as Scheduled Payment Advances (if any);

 

(b)       all
Curtailments;

 

(c)       all
Liquidation Proceeds;

 

(c)       Insurance
Proceeds (other than amounts to be applied to the restoration or repair of the Related Property, or released or to be released
to the Obligor or others);

 

(d)       all
Sale Proceeds;

 

(e)       all
other amounts not specifically included in Interest Collections; and

 

(f)       all
payments received related to the exercise of any warrant under the Underlying Loan Agreement;

 

provided
that with respect to a Defaulted Loan, all payments made by an Obligor shall be deemed to be in respect of Principal Proceeds until
the Outstanding Loan Balance of such Defaulted Loan has been paid in full.

 

“Principal Distribution Amount”
means, for any Payment Date, an amount equal to the excess, if any, of the Aggregate Outstanding Note Balance over the Borrowing
Base for such Payment Date.

 

“Principal Reinvestment Account”
means the segregated account so designated and established and maintained pursuant to Section 7.01(b).

 

“Principal Reinvestment Account
Allocation Amount” means the amount determined by the Servicer pursuant to Section 5.16 that is to be deposited
into the Principal Reinvestment Account during the Investment Period.

 

“Priority of Payments”
means, collectively, the payments made on each Payment Date in accordance with Section 7.05(a), Section 7.05(b) and
Section 7.05(c), as applicable.

 

“Proceeds” means, with
respect to any Collateral, whatever is receivable or received when such Collateral is sold, liquidated, foreclosed, exchanged,
or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes all rights to payment with respect
to any insurance relating to such Collateral and all “proceeds” as defined in the New York UCC.

 

    24

     

    

 

“Qualified Institution”
means (a) the corporate trust department of the Trustee, or (b) a depository institution organized under the laws of the United
States or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), that has a long
term unsecured debt rating of at least “A3” from Moody’s, “A-” from S&P or the equivalent rating
from Morningstar (if rated by Morningstar), and whose deposits are insured by the FDIC.

 

“Ramp-Up
Period” means the period beginning on the Closing Date and ending at the earlier of (i) nine months from the Closing
Date or (ii) the time at which Eligible Loans equal or exceed $50,000,000; provided that the Ramp-Up Period may be extended
for up to two three month periods, as mutually agreed by the Issuer and the Noteholders.

 

“Rapid Amortization Event”
shall mean the occurrence of any of the following:

 

(a)       the
aggregate Outstanding Loan Balance of all Delinquent Loans (other than such Delinquent Loans that are Defaulted Loans) exceeds
20% of the Aggregate Outstanding Loan Balance as of the last day of the most recent Collection Period;

 

(b)       the
aggregate Outstanding Loan Balance of all Defaulted Loans exceeds 15% of the Aggregate Outstanding Loan Balance as of the last
day of the most recent Collection Period;

 

(c)       the
Aggregate Outstanding Note Balance exceeds the Borrowing Base for 60 consecutive days (after giving effect to all distributions
on such Payment Dates);

 

(d)       the
Loan Assets consist of Loans to nine or fewer Obligors during the Amortization Period;

 

(e)       an
Event of Default that has not been cured within the time allotted in the definition thereof;

 

(f)        a
downgrade of the rating of the Notes by the Rating Agency to below “BB”; or

 

(g)       a
downgrade of the rating of the Notes by the Rating Agency to below investment-grade and a failure to cure such downgrade within
180 days of such downgrade, unless otherwise mutually agreed upon by the Issuer and the Noteholders.

 

“Rapid Amortization Period”
shall commence on the date on which a Rapid Amortization Event occurs.

 

“Rating Agency” means
Morningstar and if Morningstar no longer maintains a rating on any of the Notes, such other nationally recognized statistical rating
organization, if any, selected by the Originator, with the consent of the Majority Noteholders.

 

“Rating Agency Confirmation”
means with respect to any proposed or actual course of action, a written confirmation from the Rating Agency to the Issuer, the
Trustee and the Servicer, to the effect that the then current rating on the Notes will not be reduced, withdrawn or downgraded
as a result of such action.

 

    25

     

    

 

“Record Date” means
the close of business on the last business day of the month immediately preceding the month in which such Payment Date occurs.

 

“Records” means all
documents, books, records and other information (including without limitation, computer programs, tapes, disks, data processing
software and related property and rights) executed in connection with the origination or acquisition of the Loans or maintained
with respect to the Loans and the related Obligors that the Originator or the Servicer have generated, in which the Originator,
the Issuer, the Trustee or the Servicer have acquired an interest pursuant to this Agreement or in which the Originator, the Issuer,
the Trustee or the Servicer have otherwise obtained an interest to the extent transferable, and subject to any confidentiality
and/or transferability restrictions.

 

“Redemption Date” means
any Payment Date designated as such by the Issuer in connection with an Optional Redemption.

 

“Redemption Price” means,
in connection with an Optional Redemption, pursuant to Section 10.01 of the Indenture, an amount equal to the sum (without
duplication) of: (i) the then Aggregate Outstanding Note Balance to be redeemed plus accrued and unpaid interest thereon to but
excluding the Redemption Date and all other amounts accrued and unpaid with respect thereto; plus (ii) all administrative and other
fees, expenses, advances and other amounts accrued and payable or reimbursable in accordance with the Priority of Payments (including
fees and expenses, if any, incurred by the Trustee and the Servicer in connection with any sale of Loans in connection with an
Optional Redemption).

 

“Reference Date” means
the third (3rd) Business Day of each month in which a Payment Date occurs.

 

“Registered” means,
with respect to any debt obligation, that such debt obligation was issued after July 18, 1984 and that is in registered form for
purposes of the Code.

 

“Related Property” means,
with respect to any Loan and as applicable in the context used, the interest of the Obligor, or the interest of the Originator
or Issuer under the Loan, in any property or other assets designated and pledged as collateral to secure repayment of such Loan,
including all Proceeds from any sale or other disposition of such property or other assets.

 

“Repossessed Property”
means items of Related Property taken in the name of the Issuer or a subsidiary thereof as a result of legal action enforcing the
Lien on the Related Property resulting from a default on the related Loan.

 

“Required Loan Documents”
means, with respect to:

 

(a)       all
Loans in the aggregate:

 

(i)       a
blanket assignment of all of the Originator’s right, title and interest in and to all Related Property securing the Loans
at any time transferred to the Issuer including, without limitation, all rights under applicable guarantees and Insurance Policies;

 

    26

     

    

 

(ii)       blanket
UCC-1 financing statements in respect of the Loans to be transferred to the Issuer as Collateral and naming the Issuer and the
Trustee, as assignee of the Issuer, as “Secured Party” and the Originator as the “Debtor”;

 

(b)       for
each Loan (provided, however, that in the case of each Participated Loan, in each case, as indicated on the List of Loans,
to the extent in the possession of the Originator or reasonably available to the Originator, copies of all documents and instruments
described in clauses (b)(ii), with respect to such Participated Loan):

 

(i)       (x)
other than in the case of a Noteless Loan or Participated Loan, a copy of the Underlying Note, (y) in the case of a Participated
Loan, a copy of each transfer document or instrument relating to such Participated Loan evidencing the assignment of such Participated
Loan to the Originator, from the Originator to the Issuer or in blank and (z) in the case of a Noteless Loan, a copy of each transfer
document or instrument relating to such Noteless Loan evidencing the assignment of such Noteless Loan from the Originator to the
Issuer or in blank;

 

“Required Payments”
shall mean each of the items described in clauses 1 through 4 of Section 7.05(a)(i).

 

“Responsible Officer”
means, when used with respect to (a) the Trustee or the Backup Servicer, any officer assigned to the Corporate Trust Office with
responsibility for administration of the transactions contemplated by the Transaction Documents, including any Chief Executive
Officer, President, Executive Vice President, Vice President, Assistant Vice President, Secretary, any Assistant Secretary, trust
officer or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated
officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject and (b) the Issuer, the Originator or the Servicer, the President, Chief
Executive Officer, Executive Vice President, any Vice President or Treasurer thereof who is also a Servicing Officer of such Person
or of the sole member of such Person, as applicable.

 

“Restructured Loan”
means any Loan that has been, or in accordance with the Operating Guidelines is required to be, modified or restructured to extend
the maturity thereof or reduce the amount (other than by reason of the repayment thereof) or extend the time for payment of principal
thereof, in each case as a result of the Obligor’s material financial underperformance, distress or default. Such Loan shall
cease to be a Restructured Loan when such Loan has been performing for at least six (6) consecutive calendar months since the date
the most recent modification was made and is no longer required to be so modified or restructured in accordance with the Operating
Guidelines.

 

“Risk Rating” has the
meaning set forth in the Operating Guidelines.

 

    27

     

    

 

“S&P” means Standard
 & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business and any successor thereto.

 

“Sale Proceeds” means
all proceeds received as a result of sales of Loans (other than Defaulted Loans) pursuant to this Agreement, net of any sales,
brokerage and related administrative or sales expenses of the Servicer or the Trustee in connection with any such sale.

 

“Scheduled Payment”
means, with respect to any Loan, each payment of principal and/or interest scheduled to be made by the related Obligor under the
terms of such Loan after (a) in the case of the Initial Loans, the Cutoff Date, (b) in the case of Subsequent Loans, the related
Subsequent Loan Cutoff Date or (c) in the case of Substitute Loans, the related Substitute Loan Cutoff Date, as adjusted pursuant
to the terms of the related Underlying Note and/or Required Loan Documents.

 

“Scheduled Payment Advance”
means, with respect to any Payment Date, the amounts, if any, deposited by the Servicer in the Collection Account on the related
Reference Date for such Payment Date in respect of Scheduled Payments (or portions thereof) pursuant to Section 5.09.

 

“Second
Lien Loans” means a Loan that is not a first lien loan because a revolving loan that, by its terms, may require
one or more future advances to be made is senior to such Loan and such Loan (a) is not (and cannot by its terms become) subordinate
in right of payment to any other obligation of the obligor of the Loan (other than with respect to such revolving loans, trade
claims, capitalized leases or similar obligations); (b) is secured by a valid second-priority perfected security interest or lien
in, to or on specified collateral securing the obligor’s obligations under the second lien loan; (c) the combined amount
of such Loan and the senior revolving credit facility would not create a combined loan to value ratio (determined in accordance
with the Operating Guidelines) greater than thirty percent (30%); and (d) is not secured solely or primarily by common stock or
other equity interests.

 

“Secured Parties” means,
collectively, the Noteholders, the Trustee and the Servicer.

 

“Securities Act” means
the Securities Act of 1933, as amended.

 

“Securities Intermediary”
has the meaning provided in the Preamble.

 

“Seller” has the meaning
provided in the Preamble.

 

“Servicer” means initially
Horizon Technology Finance Corporation, or its successors in interest, until any Servicer Transfer hereunder or the resignation
or permitted assignment by the Servicer and, thereafter, means the Backup Servicer or other Successor Servicer appointed pursuant
to Article VIII with respect to the duties and obligations required of the Servicer under this Agreement.

 

“Servicer Default” shall
have the meaning provided in Section 8.01.

 

“Servicer Transfer”
shall have the meaning provided in Section 8.02(c).

 

    28

     

    

 

“Servicing
Advances” means all reasonable and customary “out-of-pocket” costs and expenses incurred in the
performance by the Servicer of its servicing obligations, including, but not limited to, the cost of (a) the preservation,
restoration and protection of any Related Property, (b) any enforcement or judicial proceedings, including foreclosures, (c)
the management and liquidation of any Foreclosed Property or Repossessed Property, (d) compliance with its obligations under
this Agreement and other Transaction Documents and (e) services rendered in connection with the liquidation of a Loan (other
than Liquidation Expenses).

 

“Servicing Fee” shall
have the meaning provided in Section 5.11.

 

“Servicing File” means,
for each Loan, the following documents or instruments:

 

(a)       copies
of each of the Required Loan Documents; and

 

(b)       any
other portion of the Loan File which is not part of the Required Loan Documents.

 

“Servicing Officer”
means any officer of the Servicer involved in, or responsible for, the administration and servicing of Loans whose name appears
on a list of servicing officers appearing in an Officer’s Certificate furnished to the Trustee by the Servicer, as the same
may be amended from time to time.

 

“Servicing Standard”
means, with respect to any Loans and all other assets included in the Collateral, to service and administer such Loans and other
assets in the Collateral in accordance with the Operating Guidelines and the Underlying Loan Agreements (as applicable) and all
customary and usual servicing practices, in a manner consistent with the Servicer’s servicing of comparable senior loan agreements
that it owns or services for itself or others, without regard to: (i) the Servicer’s right to receive compensation for its
services hereunder or with respect to any particular transaction, or (ii) the ownership, servicing or management for others by
the Servicer of any other loans, debt securities or property by the Servicer.

 

“Servicing Transfer Costs”
means costs and expenses, if any, incurred by the Trustee or by the Successor Servicer in connection with the transfer of servicing
to the Successor Servicer, which shall not exceed $100,000 in the aggregate for any given servicing transfer; provided however,
that the Servicing Transfer Costs will not include the Successor Servicer Engagement Fee.

 

“Solvent” means, as
to any Person at any time, that (a) the fair value of the property of such Person is greater than the amount of such Person’s
liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated
for purposes of Section 101(32) of the Bankruptcy Code; (b) such Person is able to realize upon its property and pay its debts
and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business;
(c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability
to pay as such debts and liabilities mature; and (d) such Person is not engaged in business or a transaction, and is not about
to engage in a business or a transaction, for which such Person’s property would constitute unreasonably small capital.

 

“Subsequent List of Loans”
means a list, in the form of the initial List of Loans delivered on the Closing Date, but listing each Subsequent Loan and Substitute
Loan, as the case may be, transferred to the Issuer from time to time.

 

    29

     

    

 

“Subsequent Loan” means
one or more Loans transferred by the Originator to the Issuer under and in accordance with Section 2.05.

 

“Subsequent Loan Assets”
means any assets acquired by the Issuer from the Originator following the Closing Date in connection with one or more Subsequent
Loans pursuant to Section 2.05, which assets shall include the Originator’s right, title and interest in the following:

 

(i)        the
Subsequent Loans listed in the related Subsequent List of Loans, all payments paid in respect thereof and all monies due, to become
due or paid in respect thereof accruing on and after the Subsequent Loan Cutoff Date and all Insurance Proceeds, Liquidation Proceeds
and other recoveries thereon, in each case as they arise after the Subsequent Loan Cutoff Date;

 

(ii)       all
security interests and Liens and Related Property subject thereto from time to time purporting to secure payment by Obligors under
such Loans;

 

(iii)      all
guaranties, indemnities and warranties, and other agreements or arrangement of whatever character from time to time supporting
or securing payment of such Loans;

 

(iv)      all
collections and records (including Computer Records) with respect to the foregoing;

 

(v)       all
documents relating to the applicable Loan Files; and

 

(vi)      all
income, payments, proceeds and other benefits of any and all of the foregoing, including but not limited to, all accounts, cash
and currency, chattel paper, electronic chattel paper, tangible chattel paper, copyrights, copyright licenses, equipment, fixtures,
general intangibles, instruments, commercial tort claims, deposit accounts, inventory, investment property, letter of credit rights,
software, supporting obligations, accessions, and other property consisting of, arising out of, or related to the foregoing.

 

“Subsequent Loan Cash Purchase
Price” means the lesser of (i) amounts on deposit in the Principal Reinvestment Account and (ii) the aggregate Outstanding
Loan Balance of Subsequent Loans being conveyed on such Transfer Date.

 

“Subsequent Loan Cutoff Date”
means each date on or after the Closing Date on which a Subsequent Loan is transferred to the Issuer.

 

“Substitute Loan” means
one or more Loans transferred by the Originator to the Issuer under and in accordance with Section 2.07.

 

“Substitute Loan
Assets” means any assets acquired by the Issuer from the Originator following the Closing Date in connection with
substitution of one or more Substitute Loans pursuant to Section 2.04 or Section 2.07, which assets shall
include the Originator’s right, title and interest in the following:

 

    30

     

    

 

(i)        the
Substitute Loans listed in the related Subsequent List of Loans, all payments paid in respect thereof and all monies due, to become
due or paid in respect thereof accruing on and after the Substitute Loan Cutoff Date and all Insurance Proceeds, Liquidation Proceeds
and other recoveries thereon, in each case as they arise after the Substitute Loan Cutoff Date;

 

(ii)       all
security interests and Liens and Related Property subject thereto from time to time purporting to secure payment by Obligors under
such Loans;

 

(iii)      all
guaranties, indemnities and warranties, and other agreements or arrangements of whatever character from time to time supporting
or securing payment of such Loans;

 

(iv)      all
collections and records (including Computer Records) with respect to the foregoing;

 

(v)       all
documents relating to the applicable Loan Files; and

 

(vi)      all
income, payments, proceeds and other benefits of any and all of the foregoing, including but not limited to, all accounts, cash
and currency, chattel paper, electronic chattel paper, tangible chattel paper, copyrights, copyright licenses, equipment, fixtures,
general intangibles, instruments, commercial tort claims, deposit accounts, inventory, investment property, letter of credit rights,
software, supporting obligations, accessions, and other property consisting of, arising out of, or related to the foregoing.

 

“Substitute Loan Cutoff Date”
means each date on or after the Closing Date on which a Substitute Loan is transferred to the Issuer.

 

“Substitution Event”
shall have the meaning provided in Section 2.07.

 

“Successor Servicer”
shall have the meaning provided in Section 8.02(b).

 

“Successor Servicer Engagement
Fee” shall mean $125,000.

 

“Tape” shall have the
meaning provided in Section 9.04(a).

 

“Technology Loan” shall
mean a Loan made to an Obligor that provides products or services that require advanced technologies, including, but not limited
to, computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology
infrastructure or services, Internet consumer and business services, telecommunications, and telecommunications equipment.

 

    31

     

    

 

“Technology
Obligor” means an Obligor of a Technology Loan.

 

“Termination Notice”
shall have the meaning provided in Section 8.02(a).

 

“Third Party Agented Loan”
means, with respect to any Loan, (a) the Loan is originated by a Person other than or in addition to the Originator as part of
a syndicated loan transaction which has been fully consummated prior to such Loan becoming part of the Collateral, (b) upon the
sale of the Loan under this Agreement to the Issuer, the Required Loan Documents shall have been delivered to the Custodian, (c)
the Issuer, as assignee of the Loan, has all of the rights (including without limitation voting rights) of the Originator which
have been transferred by the Originator with respect to the Loan and the Originator’s right, title and interest in and to
the Related Property, (d) the Loan is secured by an undivided interest in the Related Property that also secures and is shared
by, on a pro rata basis, all other holders of such Obligor’s indebtedness of equal priority issued in such syndicated loan
transaction, and (e) the third party Loan originator (or an affiliate thereof) is the lead agent, collateral agent or paying agent
for all lenders in such syndicated loan transaction.

 

“Transaction Accounts”
means, collectively, the Collection Account, the Principal Reinvestment Account, the General Reserve Account, the Distribution
Account and the Lockbox Account.

 

“Transaction Documents”
means this Agreement, the Indenture, the Note Funding Agreement, the Notes, any fee letters (including the fee letter dated April
16, 2018 from U.S. Bank in respect of trustee fees, backup servicing fees, custodian fees and lockbox agent fees), any UCC financing
statements filed pursuant to the terms of the Transaction Documents, and any additional document the execution of which is necessary
or incidental to carrying out the terms of, or which is identified as a “Transaction Document” in, the foregoing documents,
all as such documents are amended, modified, restated, replaced, waived, substituted, supplemented or extended from time to time

 

“Transfer Date” means
the Subsequent Loan Cutoff Date or the Substitute Loan Cutoff Date, as applicable.

 

“Transfer Deposit Amount”
means, on any date of determination with respect to any Loan, an amount equal to the sum of (a) the Outstanding Loan Balance of
such Loan, (b) accrued interest thereon through such date of determination at the Loan Rate provided for thereunder, and (c) any
outstanding Scheduled Payment Advances and Servicing Advances thereon that have not been waived by the Servicer entitled thereto.

 

“Trustee” means the
Person acting as Trustee under the Indenture, its successors in interest and any successor trustee under the Indenture.

 

“Trustee Fee” means
$1,500 per month commencing when the Aggregate Outstanding Loan Balance is greater than zero at the beginning of the related Collection
Period.

 

“UCC” means the Uniform
Commercial Code, as amended from time to time, as in effect in any specified jurisdiction.

 

    32

     

    

 

“Underlying Loan Agreement”
means each single lender or multi-lender commercial loan or credit agreements or other debt agreements or instruments customary
for the applicable type of Loan originated or acquired by the Originator or one of its Affiliates.

 

“Underlying Note” means
the one or more promissory notes executed by the applicable Obligor evidencing a Loan.

 

“United States” means
the United States of America.

 

“Unused Fee” means a
fee payable by the Issuer to the Trustee for distribution to the Noteholders, quarterly in arrears, in an amount equal to the difference
between the Commitment Amount and the actual average daily Outstanding Note Balance during such quarterly period multiplied
by the Unused Fee Rate.

 

“Unused Fee Rate” means
(i) 0% from the Closing Date to six months after the Closing Date, (ii) on and after six months after the Closing Date to one year
after the Closing Date 0.25% per annum, and (ii) thereafter, 0.5% per annum.

 

Section 1.02       
Usage of Terms.

 

With respect to all
terms in this Agreement, the singular includes the plural and the plural the singular; words importing any gender include the other
genders; references to “writing” include printing, typing, lithography and other means of reproducing words in a visible
form; references to agreements and other contractual instruments include all amendments, modifications and supplements thereto
or any changes therein entered into in accordance with their respective terms and not prohibited by this Agreement; references
to Persons include their permitted successors and assigns; and the term “including” means “including without
limitation.”

 

Section 1.03       
Section References.

 

All Section references
(including references to the Preamble), unless otherwise indicated, shall be to Sections (and the Preamble) in this
Agreement.

 

Section 1.04       
Calculations.

 

Except as otherwise
provided herein, all interest rate and basis point calculations hereunder will be made on the basis of a 360 day year consisting
of twelve 30-day months and will be carried out to at least three decimal places.

 

Section 1.05       
Accounting Terms.

 

All accounting terms
used but not specifically defined herein shall be construed in accordance with generally accepted accounting principles in the
United States.

 

    33

     

    

 

ARTICLE
II

ESTABLISHMENT OF ISSUER; TRANSFER OF LOAN ASSETS

 

Section 2.01       Creation
and Funding of Issuer; Transfer of Loan Assets.

 

(a)              
The Issuer has been organized by the Originator pursuant to the terms and conditions of the Issuer LLC Agreement and the
Originator shall convey assets to the Issuer pursuant to the terms and provisions hereof. The Servicer is hereby specifically recognized
by the parties hereto as empowered to act on behalf of the Issuer in accordance with Section 5.02(g) and Section 5.02(h),
and to perform any other duties and obligations required to be performed by the Servicer under the Transaction Documents.

 

(b)              
Subject to and upon the terms and conditions set forth herein, and in consideration of the Issuer’s delivery to or
upon the order of the Originator of the Initial Advance on the Closing Date, the Originator hereby sells, transfers, assigns, sets
over and otherwise conveys to the Issuer all the right, title and interest of the Originator in and to the Initial Loan Assets.

 

To the extent the purchase
price paid to the Originator for any Loan Assets is less than the fair market value of such Loan Assets, the difference between
such fair market value and such purchase price shall constitute a capital contribution made by the Originator to the Issuer on
the Closing Date in the case of the Initial Loans and as of the related Transfer Date in the case of any Subsequent Loans or Substitute
Loans. For all purposes of this Agreement, any contributed Loan Assets shall be treated the same as Loan Assets sold for cash,
including without limitation for purposes of Section 11.01.

 

(c)              
The Originator acknowledges that the representations and warranties of the Originator in Section 3.01 through Section
3.04 will run to and be for the benefit of the Issuer and the Trustee, and the Issuer and the Trustee may enforce directly
the repurchase obligations of the Originator, with respect to breaches of such representations and warranties that materially and
adversely affect the interests of any Noteholder as set forth in this Agreement. Other than with respect to Section 12.02,
the repurchase obligation or substitution obligation of the Originator set forth in Section 11.01 constitutes the sole remedy
available for a breach of representation or warranty of the Originator in connection with the purchase of any Loan Asset.

 

(d)              
The sale, transfer, assignment, set-over and conveyance of the Loan Assets by the Originator to the Issuer pursuant to this
Agreement does not constitute and is not intended to result in a creation or an assumption by the Issuer of any obligation of the
Originator in connection with the Loan Assets, or any agreement or instrument relating thereto, including, without limitation,
(i) any obligation to any Obligor relating to any unfunded commitment from the Originator, (ii) any taxes, fees, or other charges
imposed by any Governmental Authority and (iii) any insurance premiums that remain owing with respect to any Loan Asset at the
time such Loan Asset is sold hereunder. Without limiting the foregoing, (x) the Issuer does not assume any obligation to purchase
any additional notes or loans under agreements governing the Loan Assets and (y) the sale, transfer, assignment, set-over and conveyance
of the Loan Assets by the Originator to the Issuer pursuant to this Agreement does not constitute and is not intended to result
in a creation or an assumption by the Issuer of any obligation of the Originator as lead agent or collateral agent under any Agented
Loan or Co-Agented Loan.

 

    34

     

    

 

(e)               The
Originator and the Issuer intend and agree that (i) each transfer of the Loan Assets by the Originator to the Issuer
hereunder is intended to be a sale, conveyance and transfer of ownership of the Loan Assets, as the case may be, rather than
the mere granting of a security interest to secure a borrowing and (ii) such Loan Assets shall not be part of the
Originator’s estate in the event of a filing of a bankruptcy petition or other action by or against the Originator
under any Insolvency Law. In the event, however, that notwithstanding such intent and agreement, such transfers are deemed to
be a mere granting of a security interest to secure indebtedness, the Originator shall be deemed to have granted (and as of
the Closing Date hereby grants to) to the Issuer a perfected first priority security interest in all right, title and
interest of the Originator in all Loan Assets and the proceeds thereof and this Agreement shall constitute a security
agreement under Applicable Law, securing the repayment of the purchase price paid hereunder, the obligations and/or interests
represented by the Notes, in the order and priorities, and subject to the other terms and conditions of, this Agreement and
the Indenture, together with such other obligations or interests as may arise hereunder and thereunder in favor of the
parties hereto and thereto.

 

Section 2.02       
Conditions to Transfer of Initial Loan Assets to Issuer.

 

On or before the Closing
Date, the Originator shall deliver or cause to be delivered to the Trustee (or with respect to (d) below, to the Custodian, on
behalf of the Trustee) each of the documents, certificates and other items as follows:

 

(a)              
a certificate of an officer of the Originator substantially in the form of Exhibit C hereto;

 

(b)              
copies of resolutions of (i) the Fund, as Originator and Seller, and (ii) the sole member of the Issuer, approving the execution,
delivery and performance of this Agreement, the Transaction Documents to which it is a party and the transactions contemplated
hereunder and thereunder, certified in each case by the Secretary or an Assistant Secretary of the Fund and the sole member of
the Issuer, as applicable;

 

(c)              
officially certified evidence dated within 30 days of the Closing Date of due formation and good standing of the Originator
and the Issuer under the laws of the State of [Delaware];

 

(d)              
the initial List of Loans, certified by an officer of the Originator, together with an Assignment with respect to the Initial
Loan Assets substantially in the form of Exhibit A hereto (along with the delivery of any instruments and Loan Files as
required under Section 2.09);

 

(e)              
within ten days of the Closing Date, evidence of the proper filing of a UCC-1 financing statement, naming the Originator
as seller or debtor, naming the Issuer as assignor secured party, naming the Trustee as the total assignee of the purchaser or
secured party and describing the Loan Assets as collateral, with the office of the Secretary of State of the State of Delaware
and in such other locations as the Initial Purchasers shall have required; and evidence of proper filing of a UCC-1 financing statement,
naming the Issuer as debtor, naming the Trustee as secured party and describing the Collateral as collateral with the office of
the Secretary of State of the State of Delaware and in such other locations as the Initial Purchasers shall have required;

 

(f)               
an Officer’s Certificate listing the Servicer’s Servicing Officers;

 

    35

     

    

 

(g)              
 a fully executed copy of each of the Transaction Documents;

 

(h)              
except with respect to (i) Agented Loans, Co-Agented Loans and Third Party Agented Loans where the Originator (or a wholly-owned
subsidiary of the Originator) receives payments on behalf of or as agent for the other lenders thereunder or where payments thereunder
are made directly to such other lenders on behalf of or as agent for the Originator (or a wholly-owned subsidiary of the Originator)
and (ii) Loans described in Section 7.01(d), the Servicer shall have notified and directed the Obligor with respect to each
Loan to make all payments on the Loans, whether by wire transfer, ACH or otherwise, directly to the Lockbox Account;

 

(i)               
the Servicer shall have notified and directed each of the Fund’s co-lenders under Co-Agented Loans and Third-Party
Loans that receive payments on behalf of the Originator, to transfer such payments received from the Obligors with respect to such
Loans to the Lockbox Account within two Business Days of receipt of such payments by such co-lender;

 

(j)                
the Initial Loans satisfy the Initial Loans Criteria;

 

(k)               
the Issuer and the Noteholders shall have received a Borrowing Base Certificate for the Closing Date;

 

(l)               
an Opinion of Counsel with respect to (A) the due authorization, valid execution and delivery of each Transaction Document
to which the Issuer, the Servicer and the Originator are a party and its binding effect on such party, (B) certain “true
sale” and “non-consolidation” issues relating to Originator and Issuer; and (C) certain “perfection”
issues; and

 

(m)             
a rating letter from Morningstar to the effect that Morningstar has assigned at least a “BBB” rating to the
Notes.

 

Section 2.03       
Acceptance by Issuer.

 

On the Closing Date,
if the conditions set forth in Section 2.02 have been satisfied, the Issuer shall issue and the Trustee shall authenticate,
the Notes secured by the Collateral.

 

Section 2.04       
Conveyance of Substitute Loans.

 

(a)              
With respect to any Substitute Loans to be conveyed to the Issuer by the Originator as described in Section 2.07,
the Originator hereby sells, transfers, assigns, sets over and otherwise conveys to the Issuer, without recourse other than as
expressly provided herein (and the Issuer shall purchase through cash payment and/or by exchange of one or more related Loans released
by the Issuer to the Originator on the related Transfer Date), all the right, title and interest of the Originator in and to the
Substitute Loan Assets, such property, upon such transfer, becoming part of the Collateral.

 

    36

     

    

 

The purchase
price may equal, exceed or be less than the fair market value of such Substitute Loan as of the related Substitute Loan
Cutoff Date, plus in each case accrued interest thereon. To the extent the purchase price of any Loan is less than the fair
market value thereof, the Originator shall have made a capital contribution to the Issuer in an amount equal to the
difference between the purchase price and the fair market value of such Substitute Loan.

 

(a)              
 [Reserved].

 

(b)              
The Originator shall transfer to the Issuer hereunder the applicable Substitute Loans and Related Property only upon the
satisfaction of each of the following conditions on or prior to the related Substitute Loan Cutoff Date (in addition to the conditions
set forth in Section 2.10):

 

(i)              
the Originator shall have provided the Issuer, the Custodian and the Trustee with timely notice of such substitution, which
shall be delivered no later than 11:00 a.m. New York City time on the related Substitute Loan Cutoff Date;

 

(ii)            
there shall have occurred, with respect to each such Substitute Loan, a corresponding Substitution Event with respect to
one or more Loans then in the Collateral;

 

(iii)           
the Originator shall have delivered to the Issuer, the Custodian and the Trustee a Subsequent List of Loans listing the
applicable Substitute Loans and an assignment agreement as required by the related Underlying Loan Agreement indicating that the
Issuer is the holder of the related Substitute Loan;

 

(iv)          
the Originator shall have deposited or caused to be deposited in the Collection Account all Collections received by it with
respect to the applicable Substitute Loans on and after the related Substitute Loan Cutoff Date;

 

(v)            
each of the representations and warranties made by Originator pursuant to Sections 3.02 and 3.04 applicable
to the Substitute Loans shall be true and correct as of the related Substitute Loan Cutoff Date;

 

(vi)           
except with respect to (i) Agented Loans, Co-Agented Loans and Third Party Agented Loans where the Originator (or a wholly-owned
subsidiary of the Originator) receives payments on behalf of or as agent for the other lenders thereunder or where payments thereunder
are made directly to such other lenders on behalf of or as agent for the Originator (or a wholly-owned subsidiary of the Originator)
and (ii) Loans described in Section 7.01(d), the Servicer shall have notified and directed the Obligor with respect
to each Substitute Loan to make all payments on the Loans, whether by wire transfer, ACH or otherwise, directly to the Lockbox
Account;

 

    37

     

    

 

(vii)        
 the Servicer shall have notified and directed each of the Fund’s co-lenders under Co-Agented Loans and Third-Party
Loans that receive payments on behalf of the Originator, to transfer such payments received from the Obligors with respect to such
Substitute Loans to the Lockbox Account within two Business Days of receipt of such payments by such co-lender; and

 

(viii)       
the Originator shall bear all incidental transactions costs incurred in connection with a substitution effected pursuant
to this Agreement and shall, at its own expense, on or prior to the related Substitute Loan Cutoff Date, indicate in its Computer
Records that ownership of each Substitute Loan identified on the Subsequent List of Loans has been sold by the Originator to the
Issuer pursuant to this Agreement.

 

(c)              
The Servicer, the Issuer and the Trustee (at the written request of the Servicer) shall execute and deliver such instruments,
consents or other documents and perform all acts reasonably requested by the Servicer in order to effect the transfer and release
of any of the Issuer’s interests in the Loans that are being substituted.

 

Section 2.05       
Conveyance of Subsequent Loans.

 

(a)              
With respect to any Subsequent Loans to be conveyed to the Issuer by the Originator during the Investment Period, the Originator
on any Transfer Date may sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse other than as expressly
provided herein (and the Issuer may purchase (i) through cash payment from amounts on deposit in the Principal Reinvestment Account,
(ii) at the direction of the Issuer, through direct payment of Advances by the Noteholders or (iii) through a combination of the
foregoing), all the right, title and interest of the Originator in and to the Subsequent Loan Assets, such property, upon such
transfer, becoming part of the Collateral.

 

The cash to be paid
by the Issuer for any Subsequent Loan shall be equal to [the Subsequent Loan Cash Purchase Price which may equal, exceed or be
less than] the fair market value of such Subsequent Loan as of the related Subsequent Loan Cutoff Date, plus in each case accrued
interest thereon. To the extent the Subsequent Loan Cash Purchase Price of any Subsequent Loan is less than the fair market value
thereof, the Originator shall have made a capital contribution to the Issuer in an amount equal to the difference between the purchase
price and the fair market value of such Subsequent Loan.

 

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The Originator shall
transfer to the Issuer hereunder the applicable Subsequent Loans and Related Property only upon the satisfaction of each of the
following conditions on or prior to the related Subsequent Loan Cutoff Date:

 

(i)              the
Originator shall have provided the Issuer, the Custodian and the Trustee with timely notice of such proposed acquisition of
Subsequent Loans, which shall be delivered no later than 11:00 a.m. New York City time on the related Subsequent Loan Cutoff
Date;

 

(ii)             
the Originator shall have delivered to the Issuer, the Custodian and the Trustee a Subsequent List of Loans listing the
applicable Subsequent Loans and an assignment agreement as required by the related Underlying Loan Agreement indicating that the
Issuer is the holder of the related Subsequent Loan;

 

(iii)           
the Originator shall have deposited or caused to be deposited in the Collection Account all Collections received by it with
respect to the applicable Subsequent Loans on and after the related Subsequent Loan Cutoff Date;

 

(iv)            
each of the representations and warranties made by Originator pursuant to Sections 3.02 and 3.04 applicable
to the Subsequent Loans shall be true and correct as of the related Subsequent Loan Cutoff Date; and

 

(v)            
the Originator shall bear all incidental transactions costs incurred in connection with the acquisition of a Subsequent
Loan effected pursuant to this Agreement and shall, at its own expense, on or prior to the related Subsequent Loan Cutoff Date,
indicate in its Computer Records that ownership of each Subsequent Loan identified on the Subsequent List of Loans has been sold
by the Originator to the Issuer pursuant to this Agreement.

 

(vi)           
except with respect to (i) Agented Loans, Co-Agented Loans and Third Party Agented Loans where the Originator (or a wholly-owned
subsidiary of the Originator) receives payments on behalf of or as agent for the other lenders thereunder or where payments thereunder
are made directly to such other lenders on behalf of or as agent for the Originator (or a wholly-owned subsidiary of the Originator)
and (ii) Loans described in Section 7.01(d), the Servicer shall have notified and directed the Obligor with respect
to each Subsequent Loan to make all payments on the Loans, whether by wire transfer, ACH or otherwise, directly to the Lockbox
Account;

 

(vii)          
the Servicer shall have notified and directed each of the Fund’s co-lenders under Co-Agented Loans and Third-Party
Loans that receive payments on behalf of the Originator, to transfer such payments received from the Obligors with respect to such
Subsequent Loans to the Lockbox Account within two Business Days of receipt of such payments by such co-lender; and

 

    39

     

    

 

(viii)       
 to the extent that the Issuer requests an Advance from the Noteholders to make such acquisition of a Subsequent Loan, all
conditions precedent to the making of such Advance under the Note Funding Agreement have been satisfied and the Noteholders shall
have made such Advance to the Principal Reinvestment Account or, at the direction of the Issuer, to the Originator.

 

Section 2.06       
Optional Sales of Loans. 

 

(a)              
At the Servicer’s option, any Loan may be sold by the Servicer on the Issuer’s behalf to the Fund (or any of
its Affiliates) or a third party if:

 

(i)             
such Loan becomes a Defaulted Loan;

 

(ii)            
such Loan becomes a Delinquent Loan;

 

(iii)           
such Loan becomes a Restructured Loan; or

 

(iv)           
the Servicer, in its discretion, elects to sell the Loan.

 

(b)              
No optional sale of any Loan (to the Fund, any of its Affiliates or to third parties) pursuant to this Section 2.06
may be executed for a price less than the Transfer Deposit Amount of such Loan calculated as of the date of such sale; provided
that the price of a Defaulted Loan, Delinquent Loan or a Restructured Loan may be less than the Transfer Deposit Amount so long
as the price is for the fair market value thereof and the cumulative Outstanding Loan Balance of all Defaulted Loans, Delinquent
Loans and Restructured Loans sold in accordance with this proviso does not exceed 15% of the then Aggregate Outstanding Loan Balance.
No optional sale of a Loan to a third party pursuant to this Section 2.06 may be executed for a price less than the fair
market value thereof. Any such sale shall be subject to the further limitations described in Section 2.10 below.

 

The Issuer
or the Servicer shall cause the Sale Proceeds from any sale pursuant to this Section 2.06(b) to be delivered to the Trustee
for deposit into the Collection Account and allocated as provided in Section 7.05. Upon receipt by the Servicer for deposit
in the Collection Account of the Sale Proceeds or Liquidation Proceeds received in connection with any such sale, the Issuer and
the Trustee shall assign to the purchaser of such Loan designated by the Servicer (or to the Servicer itself) all of the Issuer’s
and Trustee’s right, title and interest in the repurchased Loan and related Loan Assets without recourse, representation
or warranty. Thereafter, such reassigned Loan shall no longer be included in the Collateral.

 

(c)              
The Issuer and the Trustee hereby agree that the Fund has the option, but not the obligation, to purchase any Loan presented
by the Issuer pursuant to this Section 2.06.

 

    40

     

    

 

 

Section 2.07       
Optional Substitution of Loans. At the
Issuer’s option, any Loan may be substituted by the Issuer and replaced with a Substitute Loan (each such Loan, a “Substitute
Loan”) if any of the following occur (each, a “Substitution Event”):

 

		(i)	such Loan becomes a Defaulted Loan;

 

		(ii)	such Loan becomes a Delinquent Loan;

		 	 

		(iii)	such Loan becomes a Restructured Loan; or

		 	 

		(iv)	the Issuer, in its discretion, elects to substitute the
Loan.

 

Any such substitution
shall be initiated by delivery of written notice (a “Notice of Substitution”) to the Custodian and the Trustee
from the Issuer that the Issuer intends to substitute a Loan pursuant to this Section 2.07 and shall be completed prior
to 60 days after delivery of such notice. Each Notice of Substitution shall specify the Loan to be substituted, the reason for
such substitution (as described in this Section 2.07(a)) and the Transfer Deposit Amount with respect to the Loan.

 

(b)              
No substitution of a Substitute Loan will be permitted unless such Substitute Loan is an Eligible Loan as of the date each
such Substitute Loan is transferred to the Issuer and following such substitution, the Aggregate Outstanding Note Balance shall
not be greater than the Borrowing Base. If the Outstanding Loan Balance of the Substitute Loan is less than the Outstanding Loan
Balance of the Loan that is being replaced, the Issuer shall cause to be deposited into the Collection Account as Principal Proceeds,
the lesser of (i) the difference between the Outstanding Loan Balances and (ii) the amount required such that the Aggregate Outstanding
Note Balance shall not be greater than the Borrowing Base.

 

(c)              
Any such substitution shall be subject to the further limitations described in Section 2.10.

 

(d)              
Following the Investment Period, no substitution of a Substitute Loan will be permitted if such Substitute Loan has a maturity
date later than the maturity date of the Loan that is being replaced.

 

Section 2.08       
Release of Excluded Property.

 

The parties hereto
acknowledge and agree that the Loans acquired by the Issuer from the Originator do not include an interest in any Excluded Property.
To the extent any proceeds of Excluded Property are received by the Issuer or the Trustee, the Trustee hereby agrees to release
to the Originator, any amounts in respect of Excluded Property immediately upon identification thereof and upon receipt of an Officer’s
Certificate of the Servicer, which release shall be automatic and shall require no further act by the Trustee or the Issuer; provided
that the Trustee and Issuer shall execute and deliver such instruments of release and assignment or other documents, or otherwise
confirm the foregoing release, as may reasonably be requested by the Originator in writing.

 

Section 2.09       
Delivery of Documents in the Loan File.

 

(a)               Subject
to the delivery requirements set forth in Section 2.09(b), the Issuer hereby authorizes and directs the Originator to
deliver possession of all the Loan Files to the Trustee or the Custodian on its behalf (with copies to be held by the
Servicer), on behalf of and for the account of the Noteholders. The Originator shall also identify on the List of Loans
(including any deemed amendment thereof associated with any Subsequent Loans or Substitute Loans), whether by attached
schedule or marking or other effective identifying designation, all Loans that are evidenced by such instruments.

 

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(b)              
With respect to each Loan in the Collateral, at least three Business Days before the Closing Date in the case of the Initial
Loans (or such lesser time as shall be acceptable to the Custodian) and on or before the related Transfer Date in the case of any
Subsequent Loans or Substitute Loans, the Originator shall deliver or cause to be delivered to the Custodian, to the extent not
previously delivered, each of the documents in the Loan File with respect to such Loan, provided, however, that in those
instances where a copy of the Underlying Note was delivered to the Custodian as a Required Loan Document pursuant to clause (b)(i)(x)
of the definition of Required Loan Document, either the original or if accompanied by a “lost note” affidavit and indemnity,
a copy of the Underlying Note, in each case, endorsed by the prior holder of record either in blank or to the Issuer (and evidencing
an unbroken chain of endorsements from the prior holder thereof evidenced in the chain of endorsements to the Trustee), with any
endorsement to the Issuer to be in the following form: “Horizon Funding I, LLC,” will be delivered or caused to be
delivered within ten Business Days of the related Transfer Date.

 

Section 2.10       
Limitations on Optional Sale and Substitution.
The parties hereto hereby agree that:

 

(a)              
In no event may (a) the aggregate Outstanding Loan Balance of Delinquent Loans and Restructured Loans optionally sold or
substituted by the Issuer hereunder exceed 7.5% of the then Aggregate Outstanding Loan Balance, subject to the limitation in clause
(c) below on aggregate optional sales and substitutions with respect to all of the Loans, (b) the aggregate Outstanding Loan Balance
of Defaulted Loans sold or substituted by the Issuer exceed 7.5% of the then Aggregate Outstanding Loan Balance, subject to the
limitation in clause (c) below on aggregate optional sales and substitutions with respect to all of the Loans, or (c) the aggregate
Outstanding Loan Balance of all Loans (including any Delinquent Loans, Restructured Loans or Defaulted Loans optionally sold or
substituted as described above) optionally sold or substituted by the Issuer for any reason exceed 15% of the then Aggregate Outstanding
Loan Balance. For the purpose of calculating the amount of the Aggregate Outstanding Loan Balance comprising Loans that are optionally
sold or substituted as described above, any Substitute Loans that have been placed into the Collateral in satisfaction of the Originator’s
obligations to repurchase or substitute loans pursuant to Section 11.01 shall be disregarded. Further, any Loan that is
sold to Persons other than the Originator or its Affiliates for the following reasons shall not be subject to any of the foregoing
limitations: (x) a Delinquent Loan, Restructured Loan (or a Loan determined by the Servicer in accordance with the Servicing Standard
should be restructured) or a Defaulted Loan where the Issuer has certified to the Trustee that it has determined in good faith
that the best recovery for such Loan is the sale of such Loan to a third party, (y) a Loan for which the Issuer has certified to
the Trustee that the terms of such Loan are subject to contractual purchase rights of third parties and such third party has exercised
such right, or (z) a Loan which is being refinanced and the Issuer has certified to the Trustee that the related Obligor or new
lender has requested that such Loan be sold to a third party for the purpose of refinancing such Loan.

 

(b)               The
parties hereto agree that (i) if an Event of Default shall have occurred and the Notes have been accelerated, the Issuer may
not exercise its option to sell or substitute Loans pursuant to Section 2.06 or Section 2.07 without the prior
written consent of the Majority Noteholders and (ii) if a Servicer Default shall have occurred, until such time as such
Servicer Default is no longer continuing, the Issuer (A) may not exercise its option to substitute Loans pursuant to Section
2.07 without the prior written consent of the Majority Noteholders and (B) may only sell a Loan pursuant to Section
2.06 if the price therefor is at least equal to the Transfer Deposit Amount of such Loan.

 

    42

     

    

 

Section 2.11       
Certification by Trustee and Custodian; Possession of Loan Files.

 

(a)              
Review; Certification. On or prior to the Closing Date (in the case of the Initial Loans) or the related Transfer
Date (in the case of any Subsequent Loans or Substitute Loans), the Custodian shall review the Required Loan Documents in the Loan
File that are required to be delivered pursuant to Section 2.09(b) on the Closing Date (in the case of the Initial Loans)
or the related Transfer Date (in the case of any Subsequent Loans or Substitute Loans), and shall deliver to the Issuer, the Originator,
the Trustee and the Servicer a certification and the Trustee shall deliver or make available electronically to any Noteholder who
requests a copy from the Trustee such certification, with respect to the Required Loan Documents delivered to it at such time in
the form attached hereto as Exhibit H-1 on or prior to the Closing Date (in the case of the Initial Loans) or the related
Transfer Date (in the case of any Subsequent Loans or Substitute Loans). Within two Business Days after the Custodian receives
the Required Loan Documents in the Loan File that are permitted, pursuant to Section 2.09(b), to be delivered after the
Closing Date (in the case of the Initial Loans) or the related Transfer Date (in the case of any Subsequent Loans or Substitute
Loans), the Custodian shall deliver to the Originator, the Trustee and the Servicer a certification, and the Trustee shall deliver
or make available electronically to any Noteholder who requests a copy from the Trustee such certification, with respect to the
Required Loan Documents delivered to it at such time in the form attached hereto as Exhibit H-1, which updated certification
shall supplement any previous certification given. Within 90 days of the end of the calendar year immediately following the end
of the Investment Period, the Custodian shall deliver to the Originator, the Issuer, the Servicer and the Trustee, and the Trustee
shall deliver or make available electronically to any Noteholder who requests a copy from the Trustee a final certification in
the form attached hereto as Exhibit H-2 evidencing the completeness of the Loan Files with respect to the Required Loan
Documents with respect to all Loans. The Servicer shall provide notice of the end of the Investment Period to the Trustee and to
the Custodian if the Investment Period Termination Date will occur on any date other than June 1, 2020. Neither the Trustee nor
the Custodian makes representations as to (i) the validity, legality, sufficiency, enforceability or genuineness of any of the
documents, or (ii) the collectability, insurability, effectiveness or suitability of any asset; and neither the Trustee nor the
Custodian has made any independent examination of any documents contained in each Loan File beyond the review specifically required
under the Transaction Documents.

 

(b)               Non-Conforming
Loan Files. If the Custodian during the process of reviewing the Loan Files finds any document constituting a part of a
Loan File which is not properly executed (if applicable), has not been received, is unrelated to a Loan identified in the
List of Loans, or does not conform on its face in any respect to the requirements of the definition of Loan File, or the
description thereof as set forth in the List of Loans, the Custodian shall promptly so notify the Originator and the Servicer
via delivery of the exception report attached to the related certification. In performing any such review, the Custodian may
conclusively rely on the Originator as to the purported genuineness of any such document and any signature thereon. It is
understood that the scope of the Custodian’s review of the Loan Files is limited solely to confirming that the
documents listed in the definition of Required Loan Documents have been executed and received and relate to the Loans
identified in the List of Loans. The Originator agrees to use reasonable efforts to remedy any defect in a document
constituting part of a Loan File of which it is so notified by the Custodian via delivery of the exception report attached to
the related certification. If, however, within 30 days after the Custodian’s notice to it respecting such defect, the
Originator has not remedied the defect and such defect materially and adversely affects the value of the related Loan, such
Loan will be treated as an Ineligible Loan and the Originator shall (i) substitute in lieu of such Loan a Substitute Loan in
the manner and subject to the conditions set forth in Section 11.01  or (ii) repurchase such Loan at a purchase price
equal to the Transfer Deposit Amount, which purchase price shall be deposited in the Collection Account within such 30-day
period.

 

    43

     

    

 

(c)              
Release of Entire Loan File upon Sale, Substitution or Repurchase. Subject to Section 5.08(a), upon receipt
by the Custodian of a certification of a Servicing Officer of the Servicer of such substitution or of such purchase and the deposit
of the amounts then required to be deposited as described in Section 2.05, Section 2.07, Section 2.11(b) or
Section 11.01, as applicable, in the Collection Account (which certification shall be in the form of Exhibit I hereto),
the Custodian shall release to the Servicer for release to the Originator or third party, as applicable, the related Loan File
and the Trustee and the Issuer shall execute, without recourse, and deliver such instruments of transfer necessary to transfer
all right, title and interest in such Loan to the Originator or third party, as applicable, free and clear of any Liens created
by the Transaction Documents. All costs of any such transfer shall be borne by the Originator.

 

(d)              
Partial Release of Loan File and/or Related Property. Subject to Section 5.08(b), if in connection with
taking any action in connection with a Loan (including, without limitation, the amendment to documents in the Loan File and/or
a revision to Related Property) the Servicer requires any item constituting part of the Loan File, or the release from the Lien
of the related Loan of all or part of any Related Property, the Servicer shall deliver to the Trustee and the Custodian a certificate
to such effect in the form attached as Exhibit I hereto. Subject to Section 5.08(d), upon receipt of such certification,
the Custodian shall deliver to the Servicer within two Business Days of such request (if such request was received by 2:00 p.m.,
New York City time), the requested documentation, and the Trustee, upon a request made by the Servicer, shall execute, without
recourse, and deliver such instruments of transfer necessary to release all or the requested part of the Related Property from
the Lien of the related Loan and/or the Lien under the Transaction Documents.

 

(e)              
Annual Certification. Within 90 days of the beginning of each calendar year, commencing in 2019, the Custodian shall
deliver to the Originator, the Trustee and the Servicer a certification, and the Trustee shall deliver to any Noteholder who requests
a copy from the Trustee such certification, detailing all transactions with respect to the Loans for which the Custodian (on behalf
of the Trustee) holds the Loan Files pursuant to this Agreement during the prior calendar year. Such certification shall list all
Loan Files which were released by or returned to the Custodian during the prior calendar year, the date of such release or return
and the reason for such release or return (as identified on Exhibit I hereto relating to such release).

 

    44

     

    

 

ARTICLE
III

 

REPRESENTATIONS AND WARRANTIES

 

The Originator makes,
and upon each conveyance of Subsequent Loans or Substitute Loans, is deemed to make, the representations and warranties in Section
3.01 through Section 3.04, on which the Issuer will rely in purchasing the Initial Loan Assets on the Closing Date (and,
any Subsequent Loan Assets or Substitute Loan Assets on the relevant Transfer Date), and on which the Noteholders will rely.

 

Such representations
and warranties are given as of the execution and delivery of this Agreement and as of the Closing Date (or Transfer Date, as applicable),
but shall survive the sale, transfer and assignment of the Loan Assets to the Issuer. Other than with respect to Section 12.02,
the repurchase obligation or substitution obligation of the Originator set forth in Section 11.01 constitutes the sole remedy
available for a breach of a representation or warranty of the Originator set forth in Section 3.01 through Section 3.04.

 

Section 3.01       
Representations and Warranties Regarding the Originator.
The Originator represents and warrants to the Issuer and the Trustee that:

 

(a)              
Organization and Good Standing. The Originator is a limited liability company duly organized, validly existing and
in good standing under the laws of the State of Delaware and has the power to own its assets and to transact the business in which
it is currently engaged. The Originator is duly qualified to do business and is in good standing in each jurisdiction in which
the character of the business transacted by it or properties owned or leased by it requires such qualification and in which the
failure so to qualify would have a material adverse effect on the business, properties, assets, or condition (financial or otherwise)
of the Originator.

 

(b)              
Authorization; Valid Sale; Binding Obligations. The Originator has the power and authority to make, execute, deliver
and perform this Agreement and the other Transaction Documents to which it is a party and all of the transactions contemplated
under this Agreement and the other Transaction Documents to which it is a party, and to create the Issuer and cause it to make,
execute, deliver and perform its obligations under this Agreement and the other Transaction Documents to which the Issuer is a
party, and the Originator has taken all necessary limited liability company action to authorize the execution, delivery and performance
of this Agreement and the other Transaction Documents to which it is a party and to cause the Issuer to be created. This Agreement
shall effect a valid sale of the Loan Assets from the Originator to the Issuer and upon consummation of such sale, the Issuer will
have a perfected interest in such Loan Assets of first priority. This Agreement and the other Transaction Documents to which the
Originator is a party constitute the legal, valid and binding obligation of the Originator enforceable in accordance with their
respective terms, except as enforcement of such terms may be limited by applicable Insolvency Laws and general principles of equity,
whether considered in a suit at law or in equity.

 

(c)               No
Consent Required. The Originator is not required to obtain the consent of any other party (other than those that it has
already obtained) or any consent, license, approval or authorization from, or registration or declaration with, any
Governmental Authority (other than those that it has already obtained) in connection with the execution, delivery,
performance, validity or enforceability of this Agreement or the other Transaction Documents to which it is a party.

 

    45

     

    

 

(d)              
No Violations. The execution, delivery and performance of this Agreement and the other Transaction Documents to which
it is a party by the Originator, and the consummation of the transactions contemplated hereby and thereby, will not violate in
any material respect any Applicable Law applicable to the Originator, or conflict with, result in a default under or constitute
a breach of the Originator’s organizational documents or Contractual Obligations to which the Originator is a party or by
which the Originator or any of the Originator’s properties may be bound, or result in the creation or imposition of any Lien
of any kind upon any of its properties pursuant to the terms of any such Contractual Obligations, other than as contemplated by
the Transaction Documents.

 

(e)              
Litigation. No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently
pending, or to the knowledge of the Originator threatened, against the Originator or any of its properties or with respect to this
Agreement, the other Transaction Documents to which it is a party or the Notes (i) that, if adversely determined, would in the
reasonable judgment of the Originator be expected to have a material adverse effect on the business, properties, assets or condition
(financial or otherwise) of the Originator or the Issuer or the transactions contemplated by this Agreement or the other Transaction
Documents to which the Originator is a party or (ii) seeking to adversely affect the federal income tax or other federal, state
or local tax attributes of the Notes.

 

(f)               
Solvency. The Originator at the time of and after giving effect to each conveyance of Loan Assets hereunder, is Solvent
on and as of the date thereof.

 

(g)              
Taxes. The Originator has filed or caused to be filed all tax returns which, to its knowledge, are required to be
filed and has paid all taxes shown to be due and payable on such returns or on any assessments made against it or any of its property
and all other taxes, fees or other charges imposed on it or any of its property by any Governmental Authority (other than any amount
of tax due, the validity of which is currently being contested in good faith by appropriate proceedings and with respect to which
reserves in accordance with generally accepted accounting principles have been provided on the books of the Originator); no tax
Lien has been filed and, to the Originator’s knowledge, no claim is being asserted, with respect to any such tax, fee or
other charge.

 

(h)              
Place of Business; No Changes. The Originator’s location (within the meaning of Article 9 of the UCC) is the
State of Delaware. The Originator has not changed its name, whether by amendment of its certificate of formation, by reorganization
or otherwise, within the four months preceding the Closing Date. The Originator has not changed its location within the four months
preceding the Closing Date.

 

(i)                
Not an Investment Company. The Originator is not and, after giving effect to the transactions contemplated by the
Transaction Documents, will not be required to be registered as an “investment company” under the 1940 Act.

 

    46

     

    

 

(j)                
 Sale Treatment. Other than for accounting and tax purposes, the Originator has treated and will treat the transfer
of Loan Assets to the Issuer for all purposes as a sale and purchase on all of its relevant books and records and other applicable
documents.

 

(k)              
Security Interest.

 

(i)                
This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in favor of the Issuer
in all right, title and interest of Originator in the Loan Assets, which security interest is prior to all other Liens (except
for Permitted Liens), and is enforceable as such against creditors of and purchasers from the Originator;

 

(ii)              
the Loans, along with the related Loan Files, constitute “general intangibles,” “instruments,” “accounts,”
 “investment property,” or “chattel paper,” within the meaning of the applicable UCC;

 

(iii)               
the Originator owns and has, and upon the sale and transfer thereof by the Originator to the Issuer, the Issuer will have,
good and marketable title to the Loan Assets free and clear of any Lien (other than Permitted Liens), claim or encumbrance of any
Person;

 

(iv)               
the Originator has received all consents and approvals required by the terms of the Loan Assets to the sale of the Loan
Assets hereunder to the Issuer;

 

(v)                
the Originator has caused the filing of all appropriate financing statements in the proper filing office in the appropriate
jurisdictions under Applicable Law in order to perfect the security interest in the Loan Assets granted to the Issuer under this
Agreement to the extent perfection can be achieved by filing a financing statement;

 

(vi)              
other than the security interest granted to the Issuer pursuant to this Agreement, the Originator has not pledged, assigned,
sold, granted a security interest in or otherwise conveyed any of the Loan Assets. The Originator has not authorized the filing
of and is not aware of any financing statements naming the Originator as debtor that include a description of collateral covering
the Loan Assets other than any financing statement (A) relating to the security interest granted by the Originator under this Agreement,
or (B) that has been terminated or for which a release or partial release has been filed. The Originator is not aware of the filing
of any judgment or tax Lien filings against the Originator;

 

    47

     

    

 

(vii)             
 each Underlying Note or Underlying Notes that constitute or evidence the Loan Assets has been or will be delivered to the
Trustee in accordance with Section 2.09;

 

(viii)            
 the Originator has received a written acknowledgment from the Trustee that the Trustee or its bailee is holding, in accordance
with Section 2.09, any Underlying Notes that constitute or evidence any Loan Assets solely on behalf of and for the benefit
of the Noteholders; and

 

(ix)                
none of the Underlying Notes that constitute or evidence any Loan Assets has any marks or notations indicating that they
have been pledged, assigned or otherwise conveyed to any Person other than the Issuer and the Trustee.

 

(l)                
Value Given. The cash payments and the corresponding increase in the Originator’s equity interest in the Issuer
received by the Originator in respect of the purchase price of the Loan Assets sold hereunder constitute reasonably equivalent
value in consideration for the transfer to the Issuer of such Loan Assets under this Agreement, such transfer was not made for
or on account of an antecedent debt owed by the Originator to the Issuer, and such transfer was not and is not voidable or subject
to avoidance under any Insolvency Law.

 

(m)               
Investment Company. The Issuer is not and, after giving effect to the transactions contemplated by the Transaction
Documents, will not be required to be registered as an “investment company” within the meaning of the 1940 Act.

 

(n)               
No Defaults. The Originator is not in default with respect to any order or decree of any court or any order, regulation
or demand of any federal, state, municipal or governmental agency, which default might have consequences that would materially
and adversely affect the condition (financial or otherwise) or operations of the Originator or its respective properties or might
have consequences that would materially and adversely affect its performance hereunder.

 

(o)              
Bulk Transfer Laws. The transfer, assignment and conveyance of the Loans by the Originator pursuant to this Agreement
are not subject to the bulk transfer laws or any similar statutory provisions in effect in any applicable jurisdiction.

 

(p)              
Origination and Collection Practices. The origination and collection practices used by the Originator and any of
its Affiliates with respect to each Loan have been consistent with the Servicing Standard and comply in all material respects with
the Operating Guidelines.

 

(q)              
No Adverse Selection. No selection procedures adverse to the interests of the Issuer or the Noteholders were utilized
in selecting Loans from the available loans in the Originator’s portfolio that meet the definition of Eligible Loans.

 

    48

     

    

 

(r)               
 Lack of Intent to Hinder, Delay or Defraud. Neither the Originator nor any of its Affiliates sold, or will sell,
any interest in any Loan Asset with any intent to hinder, delay or defraud any of their respective creditors.

 

(s)               
Nonconsolidation. The Originator conducts its affairs such that the Issuer would not be substantively consolidated
in the estate of the Originator and their respective separate existences would not be disregarded in the event of the Originator’s
bankruptcy.

 

(t)                
Accuracy of Information. All written factual information heretofore furnished by the Originator for purposes of or
in connection with this Agreement or the other Transaction Documents to which Originator is a party, or any transaction contemplated
hereby or thereby is, and all such written factual information hereafter furnished by the Originator to any party to the Transaction
Documents will be, true and accurate in all material respects, on the date such information is stated or certified; provided
that the Originator shall not be responsible for any factual information furnished to it by any third party not affiliated with
it, or the Originator or the Servicer, except to the extent that a Responsible Officer of the Originator has actual knowledge that
such factual information is inaccurate in any material respect.

 

The representations
and warranties set forth in Section 3.01(k) may not be waived by any Person and shall survive the termination of this Agreement.
The Originator and Issuer shall provide the Trustee and the Rating Agency with prompt written notice upon obtaining knowledge of
any breach of the representations and warranties set out in Section 3.01.

 

Section 3.02        
Representations and Warranties Regarding Each Loan and as to Certain Loans in the Aggregate.

 

The Originator represents
and warrants as to each Initial Loan as of the Closing Date, and as of each Transfer Date with respect to each Subsequent Loan
or Substitute Loan, that:

 

(a)              
List of Loans. The information set forth in the List of Loans attached hereto as Exhibit F (as the same may
be amended or deemed amended in respect of a conveyance of Subsequent Loans or Substitute Loans on a Transfer Date) is true, complete
and correct as of the Closing Date and each Transfer Date, as applicable.

 

(b)              
Eligible Loan. Such Loan satisfies the criteria for the definition of Eligible Loan set forth in this Agreement as
of the date of its conveyance hereunder.

 

Section 3.03      
[Reserved].

 

Section 3.04       
Representations and Warranties Regarding the Required Loan Documents.

 

The Originator represents
and warrants on the Closing Date with respect to the Initial Loans (or as of the related Transfer Date, with respect to Subsequent
Loans or Substitute Loans), that except as otherwise provided in Section 2.09, the Required Loan Documents and each other
item included in the Loan File for each Loan are in the possession of the Trustee (or the Custodian, on behalf of the Trustee).

 

Section 3.05       
[Reserved].

 

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Section 3.06       Representations
and Warranties Regarding the Servicer. The initial Servicer
represents and warrants to the Trustee that:

 

(a)              
Organization and Good Standing. The Servicer is a limited liability company duly organized, validly existing and
in good standing under the laws of the jurisdiction of formation and has the power to own its assets and to transact the business
in which it is currently engaged. The Servicer is duly qualified to do business and is in good standing in each jurisdiction in
which the character of the business transacted by it or properties owned or leased by it requires such qualification and in which
the failure so to qualify would have a material adverse effect on the business, properties, assets, or condition (financial or
otherwise) of the Servicer or the Issuer. The Servicer is properly licensed in each jurisdiction to the extent required by the
laws of such jurisdiction to service the Loans in accordance with the terms hereof and in which the failure to so qualify would
have a material adverse effect on the business, properties, assets, or condition (financial or otherwise) of the Servicer or Issuer.

 

(b)              
Authorization; Binding Obligations. The Servicer has the power and authority to make, execute, deliver and perform
this Agreement and the other Transaction Documents to which the Servicer is a party and all of the transactions contemplated under
this Agreement and the other Transaction Documents to which the Servicer is a party, and has taken all necessary limited liability
company action to authorize the execution, delivery and performance of this Agreement and the other Transaction Documents to which
the Servicer is a party. This Agreement and the other Transaction Documents to which the Servicer is a party constitute the legal,
valid and binding obligations of the Servicer enforceable in accordance with their respective terms, except as enforcement of such
terms may be limited by Insolvency Laws and general principles of equity, whether considered in a suit at law or in equity.

 

(c)              
No Consent Required. The Servicer is not required to obtain the consent of any other party (other than those that
it has already obtained) or any consent, license, approval or authorization from, or registration or declaration with, any Governmental
Authority (other than those that it has already obtained) in connection with the execution, delivery, performance, validity or
enforceability of this Agreement and the other Transaction Documents to which the Servicer is a party.

 

(d)              
No Violations. The execution, delivery and performance by the Servicer of this Agreement and the other Transaction
Documents to which the Servicer is a party will not violate any Applicable Law applicable to the Servicer, or conflict with, result
in a default under or constitute a breach of the Servicer’s organizational documents or any Contractual Obligations to which
the Servicer is a party or by which the Servicer or any of the Servicer’s properties may be bound, or result in the creation
of or imposition of any Lien of any kind upon any of its properties pursuant to the terms of any such Contractual Obligations,
other than as contemplated by the Transaction Documents.

 

(e)               Litigation.
No litigation or administrative proceeding of or before any court, tribunal or governmental body is currently pending, or to
the knowledge of the Servicer threatened, against the Servicer or any of its properties or with respect to this Agreement, or
any other Transaction Document to which the Servicer is a party that, if adversely determined, would in the reasonable
judgment of the Servicer be expected to have a material adverse effect on the business, properties, assets or condition
(financial or otherwise) of the Servicer or the Issuer or the transactions contemplated by this Agreement or any other
Transaction Document to which the Servicer is a party.

 

    50

     

    

 

(f)               
Reports. All reports, certificates and other written information furnished by the Servicer on behalf of the Issuer
with respect to the Loans are correct in all material respects; provided that the Servicer shall not be responsible for
any information furnished to it by any third party not affiliated with the Servicer contained in any such reports, certificates
or other written information, except to the extent that a Responsible Officer of the Servicer has actual knowledge that such factual
information is inaccurate in any material respect.

 

Section 3.07       
Representations of the Backup Servicer.
The Backup Servicer represents and warrants to the Trustee that:

 

(a)              
Organization and Good Standing. The Backup Servicer has been duly organized and is validly existing under the laws
of its jurisdiction of organization, with power, authority and legal right to own its properties and to conduct its business as
such properties are currently owned and such business is currently conducted, and had at all relevant times, and now has, power,
authority and legal right to enter into and perform its obligations under this Agreement;

 

(b)              
Due Qualification. The Backup Servicer is duly qualified to do business as a national banking association and has
obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct
of its business (including the servicing of the Loans as required by this Agreement) requires or shall require such qualification;

 

(c)              
Power and Authority. The Backup Servicer has the power and authority to execute and deliver this Agreement and the
other Transaction Documents to which the Backup Servicer is a party and to carry out its terms and their terms, respectively, and
the execution, delivery and performance of this Agreement and the other Transaction Documents to which the Backup Servicer is a
party have been duly authorized by the Backup Servicer by all necessary corporate action;

 

(d)              
Binding Obligation.  This Agreement and the other Transaction Documents to which the Backup Servicer is a party
shall constitute the legal, valid and binding obligations of the Backup Servicer enforceable in accordance with their respective
terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement
of creditors’ rights generally and by equitable limitations on the availability of specific remedies, regardless of whether
such enforceability is considered in a proceeding in equity or at law;

 

(e)               No
Violation. The consummation of the transactions contemplated by this Agreement and the other Transaction Documents to
which the Backup Servicer is a party, and the fulfillment of the terms of this Agreement and the other Transaction Documents
to which the Backup Servicer is a party, shall not conflict with, result in any breach of any of the terms and provisions of,
or constitute (with or without notice or lapse of time) a default under, the articles of association or bylaws of the Backup
Servicer, or any indenture, agreement or other instrument to which the Backup Servicer is a party or by which it is bound, or
result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument, other than this Agreement, or violate any law, order, rule or regulation applicable to the
Backup Servicer of any court or of any federal or state regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Backup Servicer or any of its properties;

 

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(f)               
No Proceedings. There are no proceedings or investigations pending or, to the Backup Servicer’s knowledge,
threatened against the Backup Servicer, before any court, regulatory body, administrative agency or other tribunal or governmental
instrumentality having jurisdiction over the Backup Servicer or its properties (i) asserting the invalidity of this Agreement or
any of the Transaction Documents to which the Backup Servicer is a party, (ii) seeking to prevent the issuance of the Notes or
the consummation of any of the transactions contemplated by this Agreement or any of the Transaction Documents to which the Backup
Servicer is a party, (iii) seeking any determination or ruling that might materially and adversely affect the performance
by the Backup Servicer of its obligations under, or the validity or enforceability of, this Agreement or any of the Transaction
Documents to which the Backup Servicer is a party or (iv) seeking to adversely affect the federal income tax or other federal,
state or local tax attributes of the Notes;

 

(g)              
No Consents. The Backup Servicer is not required to obtain the consent of any other party or any consent, license,
approval or authorization, or registration or declaration with, any governmental authority, bureau or agency in connection with
the execution, delivery, performance, validity or enforceability of this Agreement which has not already been obtained.

 

ARTICLE
IV

PERFECTION OF TRANSFER AND

PROTECTION OF SECURITY INTERESTS

 

Section 4.01       
Custody of Loans.

 

The contents of each
Loan File shall be held in the custody of the Custodian (on behalf of the Trustee) under the Indenture for the benefit of, and
as agent for, the Noteholders.

 

Section 4.02       
Filing.

 

On or prior to
the Closing Date, the Originator and Servicer shall cause the UCC financing statement(s) referred to in Section
2.02(e) to be filed, and from time to time the Servicer, on behalf of the Issuer, shall take and cause to be taken such
actions and execute such documents as are necessary or desirable, or as the Trustee (acting at the written direction of the
Majority Noteholders) may reasonably request, to perfect and protect the Trustee’s first priority perfected security
interest in the Loan Assets against all other Persons, including, without limitation, the filing of financing statements,
amendments thereto and continuation statements, the execution of transfer instruments and the making of notations on or
taking possession of all records or documents of title. Notwithstanding the obligations of the Originator and Servicer set
forth in the preceding sentence, the Issuer hereby authorizes the Servicer to prepare and file, at the expense of the initial
Servicer, such UCC financing statements (including but not limited to renewal, continuation or in lieu statements) and
amendments or supplements thereto or other instruments as the Servicer may from time to time deem necessary or appropriate in
order to perfect and maintain the security interest granted hereunder in accordance with the UCC.

 

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Section 4.03       
Changes in Name, Organizational Structure or Location.

 

(a)              
During the term of this Agreement, none of the Originator, the Servicer or the Issuer shall change its name, form of organization,
existence, state of formation or location without first giving at least 15 days’ prior written notice to the other parties
hereto.

 

(b)              
If any change in either the Servicer’s or the Originator’s name, form of organization, existence, state of formation,
location or other action would make any financing or continuation statement or notice of ownership interest or Lien relating to
any Loan Asset seriously misleading within the meaning of applicable provisions of the UCC or any title statute, the Servicer,
no later than five Business Days after the effective date of such change, shall file such amendments or financing statements as
may be required (including, but not limited to, any filings and other acts necessary or advisable under the UCC of each relevant
jurisdiction) to preserve, perfect, and protect the Trustee’s security interest in the Loan Assets and the proceeds thereof
and the priority thereof.

 

Section 4.04       
Costs and Expenses.

 

The initial Servicer
agrees to pay all reasonable and documented out-of-pocket costs and disbursements in connection with the perfection and the maintenance
of perfection and priority, as against all third parties, of the Trustee’s and Issuer’s right, title and interest in
and to the Loan Assets (including, without limitation, the security interest in the Related Property related thereto and the security
interests provided for in the Indenture); provided that to the extent permitted by the Required Loan Documents, the Servicer
may seek reimbursement for such costs and disbursements from the related Obligors.

 

Section 4.05       
Sale Treatment.

 

Other than for accounting
and tax purposes, the Originator shall treat the transfer of Loan Assets made hereunder for all purposes as a sale and purchase
on all of its relevant books and records.

 

Section 4.06       
Separateness from Issuer.

 

The Originator agrees
to take or refrain from taking or engaging in with respect to the Issuer each of the actions or activities specified in the Issuer
LLC Agreement, in Section 3.04 of the Indenture or in the “substantive non-consolidation” opinion of Dechert LLP (including
any certificates of the Originator delivered in connection therewith) delivered on the Closing Date, upon which the conclusions
therein are based.

 

Section 4.07         Powers
of Attorney.

 

Each of the
Originator and the Issuer shall deliver irrevocable powers of attorney to the Trustee to execute, deliver, file or record and
otherwise deal with the Related Property for the Loans at any time transferred to the Issuer. The powers of attorney will be
delegable by the Trustee to the Servicer and any Successor Servicer and will permit the Trustee or its delegate to prepare,
execute and file or record UCC financing statements and notices to insurers.

 

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ARTICLE
V

SERVICING OF LOANS

 

Section 5.01       
Appointment and Acceptance.

 

(a)              
Horizon Technology Finance Corporation is hereby appointed as Servicer pursuant to this Agreement and pursuant to the other
Transaction Documents under which the Servicer has any rights, duties or obligations. Horizon Technology Finance Corporation hereby
accepts such appointment and agrees to act as the Servicer pursuant to this Agreement and pursuant to the other Transaction Documents
under which the Servicer, has any rights, duties or obligations.

 

(b)              
U.S. Bank National Association is hereby appointed as Backup Servicer pursuant to this Agreement and pursuant to the other
Transaction Documents under which the Backup Servicer has any rights, duties or obligations. U.S. Bank National Association hereby
accepts such appointment and agrees to act as the Backup Servicer pursuant to this Agreement and pursuant to the other Transaction
Documents under which U.S. Bank National Association, as Backup Servicer, has any rights, duties or obligations.

 

Section 5.02       
Duties of the Servicer and the Backup Servicer.

 

The Servicer, as an
independent contract servicer, shall service and administer the Loans (including, with respect to Agented Loans, Co-Agented Loans
and Third Party Agented Loans, the Issuer’s interest as a lender thereunder) and shall have full power and authority, acting
alone, to do any and all things in connection with such servicing and administration which the Servicer may deem necessary or desirable
and consistent with the terms of this Agreement, the Operating Guidelines and the Servicing Standard and the Issuer’s rights
under the applicable Underlying Loan Agreements. The parties hereto each acknowledge, and the Noteholders are hereby deemed to
acknowledge, that the Servicer, as Servicer under this Agreement, possesses only such rights with respect to the enforcement of
rights and remedies with respect to the Loans and the Related Property and under the Required Loan Documents as those which have
been transferred to the Issuer with respect to the related Loan. Therefore, the provisions of this Article V shall not apply
to Third Party Agented Loans or Participated Loans except to the extent the Servicer, on behalf of the Issuer, has the right to
vote, consent, give directions, make advances or receive payments with respect thereto, and these provisions shall only apply to
Agented Loans and Co-Agented Loans with respect to which the Servicer is the lead agent and to the extent not inconsistent with
the related Required Loan Documents.

 

(a)               Subject
to the limitations set forth herein, the Servicer may perform its duties directly or, consistent with the Servicing Standard,
through agents, accountants, experts, attorneys, brokers, consultants or nominees selected with reasonable care by the
Servicer. The Servicer will remain fully responsible and fully liable for its duties and obligations hereunder and under any
other Transaction Document notwithstanding any such delegation to a third party. Performance by any such third party of any
of the duties of the Servicer hereunder or under any other Transaction Document shall be deemed to be performance thereof by
the Servicer.

 

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(b)              
Reserved.

 

(c)              
In the event the initial Servicer shall for any reason no longer be the Servicer, the initial Servicer at its expense and
without right of reimbursement therefor, shall deliver to the Backup Servicer or the Successor Servicer, as applicable, all documents
and records (including computer tapes and diskettes) in its possession relating to the Loans then being serviced hereunder and
an accounting of amounts collected and held by it hereunder and otherwise use its best efforts to effect the orderly and efficient
transfer of any arrangements with third parties pursuant to clause (a)  of this Section 5.02 to the Backup Servicer
or the Successor Servicer, as applicable, to the extent permitted thereby.

 

(d)              
Modifications and Waivers Relating to Loans.

 

(i)                
So long as it is consistent with the Operating Guidelines and the Servicing Standard, the Servicer may agree to waive, modify
or vary any term of any Loan, if in the Servicer’s determination such waiver, modification or variance will not be materially
adverse to the interests of the Noteholders; provided that the Servicer may not agree to any Material Modification that
would extend the stated maturity date of such Loan beyond the Legal Final Payment Date.

 

(ii)               
Except as expressly set forth in Section 5.02(d)(i), the Servicer may execute any amendments, waivers, modifications
or variances related to such Loan and any documents related thereto on behalf of the Issuer.

 

(iii)               
Reserved.

 

(iv)              Although
costs incurred by the Servicer in respect of Servicing Advances, including any interest owed with respect thereto, may be
added to the amount owing by the Obligor under the related Loan, such amounts shall not be so added for the purposes of
calculating distributions to Noteholders. Any fees and costs imposed in connection therewith on the Obligor of the related
Loan, and any reimbursement of Servicing Advances by any Obligor or out of Sale Proceeds, Liquidation Proceeds or Insurance
Proceeds, in each case, received with respect to the related Loan or its Related Property shall be withdrawn and payable to
the Servicer from the Collection Account as a Servicing Advance. Without limiting the generality of the foregoing, so long as
it is consistent with the Operating Guidelines and the Servicing Standard, the Servicer shall continue, and is hereby
authorized and empowered to execute and deliver on behalf of the Issuer, the Trustee and each Noteholder, all instruments of
amendment, waiver, satisfaction or cancellation, or of partial or full release, discharge and all other comparable
instruments, with respect to the Loans and with respect to any Related Property. Such authority shall include, but not be
limited to, the authority to substitute or release items of Related Property consistent with the Operating Guidelines and
this Agreement and sell Loans previously transferred to the Issuer. The Issuer and the Trustee have granted a power of
attorney to the Servicer with respect thereto, pursuant to Section 5.02(s). In connection with any such sale, the
Servicer shall deposit in the Collection Account, pursuant to Section 7.03(b), all proceeds received upon such
sale. If reasonably required by the Servicer, the Issuer and the Trustee shall furnish the Servicer, within five Business
Days of receipt of the Servicer’s request, with any powers of attorney and other documents necessary or appropriate to
enable the Servicer to carry out its servicing and administrative duties under this Agreement or under any of the other
Transaction Documents. Any such request by the Servicer to the Issuer or the Trustee shall be accompanied by a certification
in the form of Exhibit E attached hereto signed by a Servicing Officer. In connection with any substitution of Related
Property, the Servicer shall deliver to the Trustee the items required by, and within the time frame set forth in, Section
2.09, assuming that the date of substitution is the relevant Substitute Loan Cutoff Date.

 

    55

     

    

 

(v)              
The Servicer will not be in breach of its obligations under this Agreement by reason of any waiver, modification or variance
taken by the administrative agent, syndicate agent or other Person acting in a similar capacity in respect of a Third Party Agented
Loan or Participated Loan pursuant to its own authority or in respect of an Agented Loan, Co-Agented Loan or Third Party Agented
Loan at the direction of the requisite percentage of the lenders in violation of this Agreement if the Servicer, acting on behalf
of the Issuer, did not consent to such waiver, modification or variance on behalf of the Issuer.

 

(e)              
The Servicer shall service and administer the Loans (including collection, foreclosure, foreclosed property and repossessed
collateral management procedures other than for Third Party Agented Loans and Participated Loans, and with respect to Third Party
Agented Loans and Participated Loans, the Issuer’s interest as a lender or purchaser thereunder) in accordance with the Required
Loan Documents, the Operating Guidelines and the Servicing Standard.

 

(f)                In
accordance with the power set forth in Section 2.01(a), the initial Servicer shall perform the duties of the Issuer
under the Transaction Documents. In furtherance of the foregoing, the initial Servicer shall consult with the Originator as
the Servicer deems appropriate regarding the duties of the Issuer under the Transaction Documents. The initial Servicer shall
monitor the performance of the Issuer of its duties under the Transaction Documents and shall advise the Issuer when action
is necessary to comply with the Issuer’s duties under the Transaction Documents. The initial Servicer shall prepare for
execution by the Issuer or shall cause the preparation by other appropriate Persons of all such documents, reports, filings,
instruments, certificates and opinions as it shall be the duty of the Issuer to prepare, file or deliver pursuant to the
Transaction Documents.

 

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(g)              
In addition to the duties of the Servicer set forth in this Agreement or any of the Transaction Documents, the initial Servicer
shall perform or shall cause to be performed such calculations and shall prepare for execution by the Issuer or shall cause the
preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it
shall be the duty of the Issuer to prepare, file or deliver pursuant to state and federal tax and securities laws. In accordance
with the directions of the Issuer, the initial Servicer shall administer, perform or supervise the performance of such other activities
in connection with the Issuer as are not covered by any of the foregoing provisions and as are expressly requested by the Issuer
and are reasonably within the capability of the Servicer. The Servicer is hereby authorized to execute documents, instruments and
certificates on behalf of the Issuer.

 

(h)              
Notwithstanding anything in this Agreement or any of the Transaction Documents to the contrary, the Servicer shall be responsible
for promptly (upon a Responsible Officer of the Servicer having actual knowledge thereof) notifying the Trustee in the event that
any withholding tax is imposed on the Issuer’s payments (or allocations of income) to a Noteholder. Any such notice shall
be in writing and specify the amount of any withholding tax required to be withheld by the Trustee pursuant to such provision.

 

(i)                
All tax returns required to be signed by the Issuer, if any, will be signed by the Servicer (so long as the Servicer is
the Originator) on behalf of the Issuer if permitted under applicable law.

 

(j)                
The Servicer shall maintain appropriate books of account and records relating to services performed under this Agreement,
which books of account and records shall be reasonably accessible for inspection by the Trustee or the Noteholders at any time
during the Servicer’s normal business hours upon not less than three Business Days’ prior written notice.

 

(k)              
Without the prior written consent of the Majority Noteholders and Rating Agency Confirmation, the Servicer shall not agree
or consent to, or otherwise permit to occur, any amendment, modification, change, supplement or rescission of or to the Operating
Guidelines, in whole or in part, in any manner that could have a material adverse effect on the Loans. The Servicer shall provide
written notice of any change to the Servicing Standard to the Noteholders, the Rating Agency and the Trustee.

 

(l)                 For
so long as any of the Notes are outstanding and are “restricted securities” within the meaning of Rule 144(a)(3)
of the Securities Act, (i) the initial Servicer will provide or cause to be provided to any Holder of such Notes and any
prospective purchaser thereof designated by such Holder, upon the request of such a Holder or prospective purchaser, the
information required to be provided to such Holder or prospective purchaser by Rule 144A(d)(4) under the Securities Act; and
(ii) the initial Servicer shall update such information from time to time in order to prevent such information from becoming
false and misleading and will take such other actions as are necessary to ensure that the safe harbor exemption from the
registration requirements of the Securities Act under Rule 144A is and will be available for resales of such Notes conducted
in accordance with Rule 144A.

 

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(m)            
The initial Servicer will keep in full force and effect its existence, rights and franchise as a Delaware limited liability
company, and the Servicer shall obtain and preserve its qualification to do business as a foreign limited liability company in
each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement
and of any of the Loans and to perform its duties under this Agreement.

 

(n)              
The Servicer shall be entitled to reimbursement for any Servicing Advances or Scheduled Payment Advances from Collections.
Notwithstanding anything contained herein to the contrary, in no event shall the application of Scheduled Payment Advances prevent
a Loan from being or becoming a Delinquent Loan or a Defaulted Loan.

 

(o)              
The Servicer shall not be responsible for any taxes payable by the Issuer or any Servicing Fees payable to any Successor
Servicer.

 

(p)              
All payments received on Loans by the Servicer will be applied by the Servicer to amounts due by each Obligor in accordance
with the provisions of the related Required Loan Documents or, if to be applied at the discretion of the Servicer, then consistent
with the Operating Guidelines and the Servicing Standard.

 

(q)              
To the extent permitted by applicable law, the initial Servicer shall be responsible for any tax reporting, disclosure,
record keeping or list maintenance requirements of the Issuer under Code Sections 6011(a), 6111(d) or 6112, including, but not
limited to, the preparation of IRS Form 8886 pursuant to Federal Income Tax Regulations Section 1.6011-4(d) or any successor provision
and any required list maintenance under Federal Income Tax Regulations Section 301.6112-1 or any successor provision.

 

(r)               
The Servicer will maintain the Servicing Files at the principal place of business of the Servicer at the address set forth
in Section 13.04 in accordance with the Servicing Standard.

 

(s)                The
Issuer and the Trustee each hereby irrevocably (except as provided below) appoint the Servicer its respective true and lawful
agent and attorney-in-fact (with full power of substitution) in its name, place and stead and at the Issuer’s expense,
in connection with the performance of the Servicer’s duties provided for in this Agreement and in the other Transaction
Documents, including the following powers: (i) to give any necessary receipts or acquittance for amounts collected or
received on or with respect to the Loans and the Related Property, (ii) to make all necessary transfers of the Loans, and/or
of the Related Property, as applicable, in accordance herewith and therewith, (iii) to execute (under hand, under seal or as
a deed) and deliver all necessary or appropriate bills of sale, assignments, agreements and other instruments and
endorsements in connection with any such transfer, and (iv) to execute (under hand, under seal or as a deed) any votes,
consents, directions, releases, amendments, waivers, satisfactions and cancellations, agreements, instruments, orders or
other documents or certificates in connection with or pursuant to this Agreement or the other Transaction Documents relating
thereto or to the duties of the Servicer hereunder or thereunder, the Issuer and the Trustee hereby ratifying and confirming
all that such attorney-in-fact (or any substitute) shall lawfully do under this power of attorney and in accordance with this
Agreement and the other Transaction Documents as applicable thereto. Nevertheless, if so requested by the Servicer, the
Issuer and the Trustee or any thereof, as requested, shall ratify and confirm any such act by executing and delivering to the
Servicer or as directed by the Servicer all proper bills of sale, assignments, releases, endorsements and other certificates,
instruments and documents of whatever nature as may reasonably be designated in any such request. This power of attorney
shall, however, expire, and the Servicer and any substitute agent or attorney-in-fact appointed by the Servicer pursuant
hereto shall cease to have any power to act as the agent or attorney-in-fact of the Issuer or of the Trustee upon termination
of this Agreement or upon a Servicer Transfer from and after which the Successor Servicer shall be deemed to have the rights
of the Servicer pursuant to this clause (t).

 

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(t)                
The Servicer shall execute and file such financing statements and cause to be executed and filed such continuation statements,
all in such manner and in such places as may be required by law fully to preserve, perfect, maintain and protect the interest of
the Issuer, the Noteholders and the Trustee in the Loans and in the proceeds thereof and the priority thereof. The Servicer shall
deliver (or cause to be delivered) to the Trustee file-stamped copies of, or filing receipts for, any document filed as provided
above, as soon as available following such filing.

 

(u)              
The Servicer shall provide the Backup Servicer with a list of attorneys used in servicing or collecting on the Loans and
shall provide an updated list to the Backup Servicer promptly upon the occurrence of a Rapid Amortization Event or an Event of
Default and on an annual basis.

 

(v)              
Notwithstanding any other provision of this Agreement, if any material conflict or material inconsistency exists among the
Required Loan Documents, the Operating Guidelines and the Servicing Standard, the provisions of the Required Loan Documents shall
control.

 

(w)             
As set forth in Article VIII, in the event the Servicer fails to perform its obligations hereunder, the Backup Servicer
shall be responsible for the Servicer’s duties in this Agreement as if it were the Servicer, provided that the Backup Servicer
shall not be liable for the Servicer’s breach of its obligations.

 

(x)              
The Backup Servicer shall receive a one-time Successor Servicer Engagement Fee if it assumes the obligations of the Servicer
hereunder.

 

(y)               The
Backup Servicer shall have the following duties: (i) the Backup Servicer may conduct periodic on site visits not more than
once every 12 months to meet with appropriate operations personnel to discuss any changes in processes and procedures that
have occurred since the last visit; provided that after the occurrence of a Rapid Amortization Event or an Event of
Default, the Backup Servicer shall conduct such site visits at least once every 12 months or as frequently as requested by
the Backup Servicer, (ii) within 90 days of the first acquisition of Loans hereunder, the Backup Servicer shall have
completed all data-mapping, and (iii) not more than once per year, the Backup Servicer shall update or amend the data-mapping
by effecting a data-map refresh upon receipt of written notice from the Servicer specifying updated or amended fields, if
any, in (A) fields in the Tape or (B) fields confirmed in the original data-mapping referred to in clause (ii)
above.

 

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(z)               
The Servicer shall provide prompt notice to the Rating Agency in the event the Majority Noteholders waive the requirement
that the Loans satisfy the Portfolio Profile Milestone Criteria on the Portfolio Profile Milestone Test Date.

 

Section 5.03        
Liquidation of Loans.

 

(a)               
In the event that any payment due under any Loan and not postponed pursuant to Section 5.02 is not paid when the
same becomes due and payable, or in the event the Obligor fails to perform any other covenant or obligation under the Loan which
results in an event of default thereunder, the Servicer in accordance with the Required Loan Documents, the Operating Guidelines
and the Servicing Standard shall take such action as shall maximize the amount of recovery thereon and as the Servicer shall deem,
in its sole discretion, to be in the best interests of the Issuer; provided that if such Loan is an Agented Loan, Co-Agented
Loan or a Third Party Agented Loan, the Servicer’s obligations shall be limited to exercising the Issuer’s rights thereunder;
provided, further, that in lieu of taking such action, the Servicer, consistent with its Operating Guidelines and the Servicing
Standard, may amend or modify such Loan.

 

(b)              
The Servicer will not be in breach of its obligations under this Section 5.03 by reason of any action taken by the
administrative agent, syndicate agent or other Person acting in a similar capacity in respect of a Third Party Agented Loan or
a Participated Loan pursuant to its own authority or in respect of an Agented Loan, Co-Agented Loan, Third Party Agented Loan or
Participated Loan at the direction of the requisite percentage of the lenders in violation of this Agreement if the Servicer, acting
on behalf of the Issuer, did not consent to such action on behalf of the Issuer. The Servicer, consistent with its Operating Guidelines
and the Servicing Standard, may accelerate all payments due under any Loan to the extent permitted by the Required Loan Documents
and foreclose upon at a public or private sale or otherwise comparably effect the ownership of Related Property relating to defaulted
loans for which the related Loan is still outstanding and as to which no satisfactory arrangements can be made for collection of
delinquent payments in accordance with the provisions of Section 5.10 nor satisfactory amendment or modification is made
in accordance with Section 5.03(a). Subject to applicable law, the Servicer shall act, or shall engage an experienced Person
qualified to act, as sales and processing agent for the Related Property that is foreclosed upon. In connection with such foreclosure
or other conversion and any other liquidation action or enforcement of remedies, the Servicer shall exercise collection and foreclosure
procedures in accordance with the Operating Guidelines and the Servicing Standard. Any sale of the Related Property is to be evidenced
by a certificate of a Responsible Officer of the Servicer delivered to the Trustee setting forth the Loan, the Related Property,
the sale price of the Related Property and certifying that such sale price is the fair market value of such Related Property. In
any case in which any such Related Property has suffered damage, the Servicer will not expend funds in connection with any repair
or toward the repossession of such Related Property unless it reasonably determines that such repair and/or repossession will increase
the Liquidation Proceeds by an amount greater than the amount of such expenses.

 

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(c)              
 No later than two Business Days following its receipt thereof, the Servicer will remit to the Lockbox Account, for subsequent
deposit in the Collection Account, the Liquidation Proceeds and any Insurance Proceeds received in connection with the sale or
disposition of Related Property relating to a Defaulted Loan.

 

(d)              
After a Loan has been liquidated, the Servicer shall promptly prepare and forward to the Trustee and upon request, any Noteholder,
a report (the “Liquidation Report”), in the form attached hereto as Exhibit D, detailing the Liquidation
Proceeds received from such Loan, the Liquidation Expenses incurred and reimbursed to the Servicer with respect thereto, any Scheduled
Payment Advances and Servicing Advances reimbursed to the Servicer therefrom, any loss incurred in connection therewith, and any
Nonrecoverable Advances to be reimbursed to the Servicer with respect thereto in accordance with the Priority of Payments in Section
7.05.

 

Section 5.04       
[Reserved].

 

Section 5.05       
[Reserved].

 

Section 5.06       
Collection of Certain Loan Payments.

 

(a)              
The Servicer shall make reasonable efforts, consistent with the Operating Guidelines and the Servicing Standard, to collect
all payments required under the terms and provisions of the Loans. Consistent with the foregoing and the Operating Guidelines and
the Servicing Standard, the Servicer may in its discretion waive or permit to be waived any fee or charge which the Servicer would
be entitled to retain hereunder as servicing compensation and extend the due date for payments due on a Loan as provided in Section
5.02(d).

 

(b)              
Except as otherwise permitted under this Agreement, the Servicer agrees not to make, or consent to, any change, in the direction
of, or instructions with respect to, any payments to be made by an Obligor or, in connection with an Agented Loan, Co-Agented Loan
or a Third Party Agented Loan, the paying agent with respect thereto, in any manner that would diminish, impair, delay or otherwise
adversely affect the timing or receipt of such payments without the prior written consent of the Trustee and with the consent of
the Majority Noteholders.

 

Section 5.07       
Access to Certain Documentation and Information Regarding the Loans.

 

The Servicer
shall provide to the Trustee, any Noteholder, any bank, thrift or insurance company regulatory authority and the supervisory
agents and examiners of any regulated Noteholder, access to the documentation regarding the Loans required by applicable
local, state and federal regulations, such access being afforded without charge but only upon not less than three Business
Days prior written request by the Trustee or any such regulated Noteholder and during normal business hours at the offices of
the Servicer designated by it and in a manner that does not unreasonably interfere with the Servicer’s normal
operations or customer or employee relations. The Trustee, such Noteholder and the representative of any such regulatory
authority designated by the related Noteholder to view such information shall and shall cause their representatives to hold
in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications
for confidential treatment are unavailing) and except to the extent that the Trustee may reasonably determine that such
disclosure is consistent with its obligations hereunder. The Servicer may request that any such Person not a party hereto
enter into a confidentiality agreement reasonably acceptable to the Servicer prior to permitting such Person to view such
information.

 

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Section 5.08       
Satisfaction of Liens and Collateral and Release of Loan Files.

 

(a)              
Upon the payment in full of any Loan, the receipt by the Servicer of a notification that payment in full will be escrowed
in a manner customary for such purposes or the deposit into the Collection Account of the purchase price of any Loan acquired by
the Originator, the Servicer or another Person pursuant to this Agreement, or any other Transaction Document, the Servicer will
promptly notify the Custodian and the Trustee by a certification in the form of Exhibit I attached hereto (which certification
shall include a statement to the effect that all amounts received or to be received in connection with such payment which are required
to be deposited in the Collection Account pursuant to Section 7.03(b) have been or will be so deposited) of a Servicing
Officer and shall request delivery to it of the Loan File. Upon receipt of such certification and request, the Custodian in accordance
with Section 2.11(c), shall release, within two Business Days (if such request was received by 2:00 p.m. New York City time),
the related Loan File to the Servicer. Expenses incurred in connection with any instrument of satisfaction or deed of reconveyance
shall be payable by the Servicer and shall not be chargeable to the Collection Account or the Distribution Account; provided
that the Servicer may collect and retain such expenses from the underlying Obligor.

 

(b)              
From time to time and as appropriate for the servicing or foreclosure of any Loan, the Custodian shall, upon request of
the Servicer and delivery to the Custodian of a certification in the form of Exhibit I attached hereto signed by a Servicing
Officer, release the related Loan File to the Servicer within two Business Days (if such request was received by 2:00 p.m. New
York City time). The Servicer shall return the Loan File to the Custodian when the need therefor by the Servicer no longer exists,
unless the Loan has been liquidated and the Liquidation Proceeds relating to the Loan have been deposited in the Lockbox Account,
for further credit to the Collection Account, and remitted to the Trustee for deposit in the Distribution Account or the Loan File
or such document has been delivered to an attorney, or to a public trustee or other public official as required by law, for purposes
of initiating or pursuing legal action or other proceedings for the foreclosure or repossession of Related Property either judicially
or non-judicially, and the Servicer has delivered to the Custodian a certificate of a Servicing Officer certifying as to the name
and address of the Person to whom such Loan File or such document was delivered and the purpose or purposes of such delivery. Upon
receipt of a certificate of a Servicing Officer stating that such Loan was liquidated, the servicing receipt relating to such Loan
shall be released by the Custodian to the Servicer.

 

(c)               The
Trustee shall execute and deliver to the Servicer any court pleadings, requests for trustee’s sale or other documents
provided to it necessary to the servicing or foreclosure or trustee’s sale in respect of Related Property or to any
legal action brought to obtain judgment against any Obligor on the related loan agreement (including any Underlying Note or
other agreement securing Related Property) or to obtain a deficiency judgment, or to enforce any other remedies or rights
provided by the related loan agreement (including any Underlying Note or other agreement securing Related Property) or
otherwise available at law or in equity. Together with such documents or pleadings, the Servicer shall deliver to the Trustee
a certificate of a Servicing Officer requesting that such pleadings or documents be executed by the Trustee and certifying as
to the reason such documents or pleadings are required and that the execution and delivery thereof by the Trustee will not
invalidate or otherwise adversely affect the Lien of the agreement securing Related Property, except for the termination of
such a Lien upon completion of the foreclosure or trustee’s sale. The Trustee shall, upon receipt of a written request
from a Servicing Officer, execute any document provided to the Trustee by the Servicer or take any other action requested in
such request, that is, in the opinion of the Servicer as evidenced by such request, required by any state or other
jurisdiction or appropriate to discharge the Lien securing Related Property upon the satisfaction thereof and the Trustee
will sign and post, but will not guarantee receipt of, any such documents to the Servicer, or such other party as the
Servicer may direct, within five Business Days of the Trustee’s receipt of such certificate or documents. Such
certificate or documents shall state that the related Loan has been paid in full by or on behalf of the Obligor (or subject
to a deficiency claim against such Obligor) and that such payment has been deposited in the Collection Account.

 

(d)              
Notwithstanding anything contained in this Section 5.08 to the contrary, in no event may the Servicer possess in
excess of ten Loan Files (excluding Loan Files for Loans which have been paid in full, sold or repurchased) at any given time.
Neither the Trustee nor the Custodian shall be required to monitor the Servicer’s compliance with the requirements of this
Section 5.08(d).

 

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Section 5.09       
Scheduled Payment Advances; Servicing Advances and Nonrecoverable Advances.

 

(a)              
With respect to each Collection Period, the Servicer will determine: (i) on or before the related Reference Date, the amount
of Available Funds described in clauses (a) and (b) of the definition thereof for the following Payment Date, and
(ii) the amount required to be paid on the related Payment Date pursuant to clauses (1) through (4) of Section 7.05(a)(i)
or Section 7.05(a)(ii), as applicable (the amounts described in this clause (ii), the “Scheduled Amount”).
If the Servicer determines that any Scheduled Payments (or portion thereof) that were due and payable pursuant to one or more Loans
in the Collateral during the related Collection Period were not received prior to the end of such Collection Period and determines
that, as a result of this, the Scheduled Amount for the related Payment Date exceeds the sum of the amount of Available Funds described
in clauses (a) and (b) of the definition thereof for such Payment Date, then, subject to Section 5.09(b) below,
the Servicer has the right to elect, at its option, but is not obligated, to make a Scheduled Payment Advance in an amount up to
the lesser of (1) the amount of such excess and (2) the amount of such delinquent Scheduled Payments (or portion thereof). The
Servicer will deposit any Scheduled Payment Advances into the Collection Account on or prior to 11:00 a.m. (New York City time)
on the related Reference Date, in immediately available funds. The Servicer will be entitled to be reimbursed for Scheduled Payment
Advances pursuant to Section 5.09(c), Section 7.03 or the Priority of Payments, as applicable. In addition, the Servicer
may, at its option, make Servicing Advances in the performance of its servicing duties, unless it believes in good faith that the
advance will be a Nonrecoverable Advance. The Servicer will be entitled to reimbursement for Servicing Advances from the Collections
received from the Loan to which the Servicing Advance relates as well as pursuant to Section 5.09(c), Section 7.03
or the Priority of Payments, as applicable.

 

(b)              
 The Servicer will not make a Scheduled Payment Advance or a Servicing Advance if the Servicer has determined in its sole
discretion, exercised in good faith and consistent with the Servicing Standard, that the amount of such Scheduled Payment Advance
or Servicing Advance proposed to be advanced will be a Nonrecoverable Advance. Absent bad faith, the Servicer’s determination
as to whether any Scheduled Payment Advance or Servicing Advance is expected to be a Nonrecoverable Advance or whether, once advanced,
it is a Nonrecoverable Advance shall be conclusive and binding on the Issuer and on the Noteholders. Any such determination shall
be made by the Servicer and shall be evidenced by an Officer’s Certificate delivered promptly to the Trustee, setting forth
the basis for such determination. For the avoidance of doubt, the Servicer has the right to elect, at its option, but is not obligated,
to make a Scheduled Payment Advance.

 

(c)              
The Servicer will be entitled to recover any Scheduled Payment Advance made by it from Collections; provided that
if at any time any Scheduled Payment Advance made by the Servicer is subsequently determined to be a Nonrecoverable Advance, the
Servicer will be entitled to recover the amount of such Nonrecoverable Advance on a Payment Date to the extent then permitted in
accordance with the Priority of Payments. The Servicer will be entitled to recover the amount of any Servicing Advance in accordance
with the Priority of Payments.

 

(d)              
Notwithstanding anything to contrary in this Agreement or any Transaction Document, the Servicer shall not be entitled to
the payment of interest on any Scheduled Payment Advance or any Servicing Advance.

 

Section 5.10       
Title, Management and Disposition of Foreclosed Property.

 

(a)              
Except for Agented Loans, Co-Agented Loans and Third Party Agented Loans (in which case, the provisions of the Underlying
Loan Agreement relating to taking title to collateral shall apply) in the event that title to Related Property is acquired by the
Servicer hereunder in foreclosure or by deed in lieu of foreclosure or by other legal process, the deed, certificate of sale, or
Repossessed Property may be taken in the name of the Issuer or in the name of a subsidiary of the Issuer, the equity securities
of which will be pledged as Collateral by the Issuer to the Trustee pursuant to the Indenture. Any such Issuer subsidiary shall
be serviced by the Servicer, which may perform such services through a nominee or agent as set forth in Section 5.02(b).

 

(b)              
[Reserved].

 

(c)              
The Servicer, subject to the provisions of this Article V, shall manage, conserve, protect and operate each such
Foreclosed Property or other Repossessed Property for the Issuer or such Issuer subsidiary, as applicable, solely for the purpose
of its prudent and prompt disposition and sale. The Servicer shall, either itself or through an agent selected by the Servicer,
manage, conserve, protect and operate the Foreclosed Property or other Repossessed Property in a manner consistent with the Operating
Guidelines and the Servicing Standard. The Servicer shall attempt to sell the same (and may temporarily rent the same) on such
terms and conditions as the Servicer deems to be in the best interest of the Issuer.

 

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(d)              
 Subject to Section 5.10(e), the Servicer shall cause to be deposited in the Collection Account, no later than two
Business Days after the receipt thereof, all revenues received by the Issuer with respect to the conservation and disposition of
the related Foreclosed Property or other Repossessed Property net of Liquidation Expenses or received by the Issuer as distributions
from any Issuer subsidiary.Any Issuer subsidiary formed pursuant to Section 5.10(a) may utilize and set aside revenues
received in respect of such real estate Related Property to pay for the normal operations of the business of such Issuer subsidiary
and of such real estate Related Property, and for such other fees, costs and expenses relating thereto as are deemed appropriate
to maximize value or reduce or prevent loss with respect thereto by the Servicer, consistent with the Operating Guidelines and
the Servicing Standard, and establish and maintain such cash reserves as the Servicer (or its agent) deem reasonably necessary
with respect thereto; provided that no other funds of the Issuer shall be expended in connection with such Issuer subsidiary.

 

(e)              
The Servicer shall, pursuant to the Priority of Payments, receive reimbursement for any related unreimbursed Scheduled Payment
Advances and Servicing Advances relating to the related Loan or such Foreclosed Property or Repossessed Property, and the Servicer
shall deposit in the Lockbox Account the net cash proceeds of the sale of any Foreclosed Property or other Repossessed Property
to be distributed in accordance with Section 7.05.

 

Section 5.11       
Servicing Compensation.

 

(a)              
As compensation for its servicing activities hereunder and reimbursement for its expenses, the Servicer shall be entitled
to receive a servicing fee (the “Servicing Fee”) calculated and payable monthly in arrears on each Payment Date
prior to the termination of the Issuer. The Servicing Fee shall be equal to the product of: (i) one-twelfth of 2.00% (or, with
respect to the first Collection Period, a fraction equal to the number of days from and including the Closing Date through and
including June 30, 2018 over 360) and (ii) the Aggregate Outstanding Loan Balance as of the beginning of the related Collection
Period; provided that if the Backup Servicer becomes the Servicer, the Servicing Fee payable to the Backup Servicer for
each Collection Period thereafter shall be equal to the greater of (A) $8,500 and (B) the product of: (i) one-twelfth of 2.00%
and (ii) the Aggregate Outstanding Loan Balance as of the beginning of the related Collection Period. If any entity other than
the Servicer or the Backup Servicer becomes the Servicer, the Servicing Fee may be adjusted as agreed upon by the Majority Noteholders
and such Successor Servicer. The Servicing Fee is payable out of Collections pursuant to the Priority of Payments.

 

(b)              
In addition to the Servicing Fee, the Servicer shall be entitled to retain for itself as additional servicing compensation:
(i) reimbursement for Scheduled Payment Advances on the Loans (ii) reimbursement for Servicing Advances on the Loans and (iii)
any mistaken deposits or other related amounts due on Loans that the Servicer is entitled to retain, including without limitation
any amounts payable as additional servicing compensation pursuant to Section 5.02(d)(iv).

 

Notwithstanding the foregoing or
anything to the contrary contained herein, the Servicer hereby waives all compensation due under this Section 5.11
until such time as the Servicer provides 5 Business Days’ prior written notice to the Noteholders prior to any Payment
Date of its intent to receive such compensation as described herein. In such case, the Servicer shall be entitled to receive
all current Servicing Fees for the related period pursuant to this Section 5.11 on the next succeeding Payment Date
after delivery of such notice. Any waiver of the Servicing Fee pursuant to this paragraph shall be irrevocable and no
cumulative Servicing Fees that would have accrued to the Servicer but for such waiver shall be due and payable to the
Servicer at any time.

 

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Section 5.12       
Assignment; Resignation.

 

The Servicer shall
not assign its rights and duties under this Agreement (other than in connection with a subservicing arrangement or other arrangement
permitted under this Agreement) or resign from the obligations and duties imposed on it pursuant to this Agreement except (a) upon
a determination that its performance of its duties as Servicer is no longer permissible under Applicable Law or administrative
determination and such incapacity cannot be cured by the Servicer, (b) an assignment or resignation by mutual consent of the Servicer,
the Issuer and the Majority Noteholders, or (c) an assignment in connection with a merger, conversion, consolidation or sale of
substantially all of the Servicer’s business or substantially all of the Servicer’s asset-management business permitted
pursuant to Section 5.13 (in which case the Person resulting from the merger, conversion or consolidation shall be the successor
of the Servicer). Any such determination pursuant to clause (a) permitting the resignation of the Servicer shall be evidenced
by a written Opinion of Counsel (who may be counsel for the Servicer) to such effect delivered to the Trustee, which Opinion of
Counsel shall be in form and substance reasonably acceptable to the Trustee. No such resignation shall become effective until a
successor has been appointed pursuant to Section 8.02(b) and has assumed the Servicer’s responsibilities and obligations
in accordance with Section 8.03. No such assignment shall become effective unless the Holders of 100% of the Notes shall
have consented thereto in writing. Notwithstanding anything to the contrary herein, the Backup Servicer, in such role or as Successor
Servicer, may use agents to perform its duties hereunder without the consent of any party hereto, but the Backup Servicer shall
remain liable for the performance of such agents as if it were performing such duties. The Issuer shall provide notice to the Rating
Agency of any assignment or resignation pursuant to this Section 5.12.

 

Section 5.13       
Merger or Consolidation of Servicer.

 

Any Person into which
the Servicer may be merged or consolidated, or any Person resulting from such merger, conversion or consolidation to which the
Servicer is a party, or any Person succeeding to substantially all of the business or substantially all of the asset-management
business of the Servicer, which Person assumes the obligations of the Servicer, shall be the successor to the Servicer hereunder,
notwithstanding any provision in Section 8.02 or Section 8.03 and without execution or filing of any paper or any
further act on the part of any of the parties hereto, notwithstanding anything herein to the contrary; provided that no
such entity resulting from the merger, conversion or consolidation of the Servicer or the sale of all or substantially all of the
Servicer’s assets or business or substantially all of the Servicer’s asset-management business shall be the successor
Servicer hereunder unless either (i) such Person has assets of at least $50,000,000 and such Person’s regular business includes
the servicing of assets similar to the Loan Assets or (ii) the Holders of 100% of the Notes shall have consented thereto in writing.
Such Successor Servicer shall be a permitted assignee of the Servicer. The provisions of Section 8.03(c) and (e)
shall apply to any such servicing transfer. The Issuer shall provide notice to the Rating Agency of any merger or consolidation
pursuant to this Section 5.13.

 

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Section 5.14       Limitation
on Liability of the Servicer and Others.

 

The Servicer and any
stockholder, partner, member, manager, director, officer, employee or agent of the Servicer may rely on any document of any kind
which it in good faith reasonably believes to be genuine and to have been adopted or signed by the proper authorities or persons
respecting any matters arising hereunder. Except as otherwise provided in Section 5.02(b), the Servicer shall not be liable
for any errors, inaccuracies or omissions of any Person not affiliated with the Servicer contained in any information, report,
certificate, data or other document delivered to the Servicer or on which the Servicer must rely in order to perform its obligations
hereunder and under the other Transaction Documents except to the extent that a Responsible Officer of the Servicer has actual
knowledge of any such material error, inaccuracy or omission. The Servicer shall not be in default hereunder or incur any liability,
except as provided in the proviso in the last sentence of this Section 5.14, for any failure, error or delay in carrying
out its duties hereunder or under any other Transaction Document if such failure, error or delay results from the Servicer acting
in accordance with information prepared or supplied by a Person other than the Servicer or any of its Affiliates or the failure
or delay of any such Person to prepare or provide such information. The Servicer shall not be in default and shall incur no liability
for any act or failure to act by any servicer primarily responsible for servicing Third Party Agented Loans. Subject to the terms
of Section 12.01, the Servicer shall have no obligation to appear with respect to, prosecute or defend any legal action
which is not incidental to the Servicer’s duty to service the Loans in accordance with this Agreement, and that, in its opinion,
may cause the Servicer to incur any expense or liability. The Servicer shall not be responsible for the payment of any taxes imposed
on or with respect to the Issuer or for the fees of any Successor Servicer. Except as provided herein, neither the Servicer nor
any of its directors, officers, employees or agents shall be under any liability to any other party to this Agreement, any Noteholder
or any other Person for any action taken or for refraining from taking any action pursuant to this Agreement, whether arising from
express or implied duties under this Agreement or any other Transaction Document, or for errors in judgment; provided that,
notwithstanding anything to the contrary contained herein, neither the Servicer nor any of its directors, officers, employees or
agents shall be protected against any liability that would otherwise be imposed by reason of willful misconduct or gross negligence
in the performance of the Servicer’s duties or by reason of its reckless disregard of its obligations and duties hereunder.

 

Section 5.15       
Determination of General Reserve Account Required Balance.
The Servicer shall deposit funds into and withdraw funds from the General Reserve Account in accordance with Sections 7.02
and 7.05. The Servicer shall maintain at all times a complete and accurate record of the amount of funds on deposit in the
General Reserve Account. Prior to each Payment Date, the Servicer shall determine the General Reserve Account Required Balance
applicable to such Payment Date

 

Section 5.16        Determination
of Principal Reinvestment Account Allocation Amount during Investment Period.
During the Investment Period, prior to or on each Reference Date, the Servicer will determine and set forth in the Monthly
Report, the amount to be deposited into the Principal Reinvestment Account on the related Payment Date from Principal
Collections (after payment of clauses (1) through (3) of Section 7.05(b)(i)) (such amount, the
 “Principal Reinvestment Account Allocation Amount”). To the extent that any Principal Collections are
remaining after application of the Principal Reinvestment Account Allocation Amount, the Servicer shall direct that such
remaining funds be distributed to or at the written direction of the Issuer, and, if paid to the Noteholders, shall be
considered an Investment Period Principal Distribution Amount.

 

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ARTICLE
VI

COVENANTS OF THE ORIGINATOR

 

Section 6.01       
Legal Existence.

 

During the term of
this Agreement, the Originator shall keep in full force and effect its existence, rights and franchises as a limited liability
company under the laws of the jurisdiction of its formation and will obtain and preserve its qualification to do business in each
jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Agreement,
the other Transaction Documents and each other instrument or agreement necessary or appropriate for the proper administration of
this Agreement and the transactions contemplated hereby. In addition, all transactions and dealings between the Originator and
the Issuer will be conducted on an arm’s-length basis.

 

Section 6.02       
[Reserved].

 

Section 6.03       
Security Interests.

 

The Originator shall
not sell, pledge, assign or transfer to any Person other than the Issuer, or grant, create, incur, assume or suffer to exist any
Lien on any Loan in the Collateral or its interest in any Related Property, other than the Lien granted to the Issuer, whether
now existing or hereafter transferred to the Issuer, or any interest therein. The Originator shall promptly notify the Issuer and
the Trustee upon obtaining knowledge of the existence of any Lien on any Loan in the Collateral or its interest in any Related
Property; and the Originator shall defend the right, title and interest of the Issuer in, to and under the Loans in the Collateral
and the Issuer’s interest in any Related Property, against all claims of third parties; provided that nothing in this
Section 6.03 shall prevent or be deemed to prohibit the Originator from suffering to exist Permitted Liens upon any of the
Loans in the Collateral or its interest in any Related Property.

 

Section 6.04       
Delivery of Collections.

 

The Originator agrees
to pay to the Servicer promptly (but in no event later than two Business Days after receipt) all Collections received by the Originator
in respect of the Loans and Related Property, for application in accordance with this Agreement.

 

Section 6.05       
Regulatory Filings.

 

The Originator shall
make any filings, reports, notices, applications and registrations with, and seek any consents or authorizations from, the Commission
and any state securities authority on behalf of the Issuer as may be necessary or that the Originator deems advisable to comply
with any federal or state securities or reporting requirements laws.

 

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Section 6.06       
Compliance with Law.

 

The Originator hereby
agrees to comply in all material respects with all Applicable Law applicable to the Originator except where the failure to do so
would not reasonably be expected to have a material adverse effect on the Issuer.

 

Section 6.07       
Limitation on Liability of Originator and Others.

 

The Originator and
any stockholder, partner, member, manager, director, officer, employee or agent of the Originator may rely on any document of any
kind which it in good faith reasonably believes to be genuine and to have been adopted or signed by the proper authorities or persons
respecting any matters arising hereunder.

 

Section 6.08       
Payments from Obligors.

 

The Originator agrees
not to make, or consent to, any change in the direction of, or instructions with respect to, any payments to be made by an Obligor
in any manner that would diminish, impair, delay or otherwise adversely affect the timing or receipt of such payments into the
Lockbox Account or otherwise without (a) the prior written consent of the Trustee and the consent of the Majority Noteholders and
(b) delivery of prior written notice of such change to the Rating Agency.

 

ARTICLE
VII

ESTABLISHMENT OF ACCOUNTS;

DISTRIBUTIONS;

 

Section 7.01       
Distribution Account; Lockbox Account and Other Accounts.

 

(a)              
Distribution Account and Lockbox Account. On or before the Closing Date, the Securities Intermediary shall establish
and maintain the Distribution Account as a segregated account in its corporate trust department in the name of the Trustee, for
the benefit of the Noteholders. On or before the Closing Date, the Issuer shall establish the Lockbox Account as a non-interest
bearing, segregated deposit account with U.S. Bank National Association (the “Lockbox Bank”) and in the name
of the Trustee for the benefit of the Noteholders. The Servicer is hereby required to ensure that each of the Distribution Account
and the Lockbox Account is established and maintained as an Eligible Deposit Account with a Qualified Institution. The Servicer
will monitor the Lockbox Account on a daily basis and review the previous day’s Lockbox Account activity. If any institution
with which any of the accounts established pursuant to this Section 7.01(a) and pursuant to Section 7.03 ceases to
be a Qualified Institution, the Servicer, within ten Business Days of actual knowledge of such failure by a Responsible Officer,
establish a replacement account at a Qualified Institution after notice of such event. In no event shall the Securities Intermediary
or the Lockbox Bank, as appropriate, be responsible for monitoring whether such institution shall remain a Qualified Institution.
Each Qualified Institution maintaining an Eligible Deposit Account shall agree in writing to comply with all instructions originated
by the Securities Intermediary or Lockbox Bank, as applicable. U.S. Bank National Association, in its capacity as Lockbox Bank,
shall be afforded the rights, protections and immunities that are provided by general bank rules and regulations as well as any
standard terms with respect to lockboxes established with U.S. Bank National Association.

 

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(b)              
 Principal Reinvestment Account. On or before the Closing Date, the Securities Intermediary shall establish and maintain
as a segregated account, the Principal Reinvestment Account in the name of the Trustee for the benefit of the Noteholders. Amounts
on deposit in the Principal Reinvestment Account will be invested by the Securities Intermediary, at the written direction of the
Servicer, in Permitted Investments. Absent written direction, amounts in the Principal Reinvestment Account shall remain uninvested.
The Servicer is hereby required to ensure that the Principal Reinvestment Account is established and maintained as an Eligible
Deposit Account with a Qualified Institution. The Servicer will monitor the Principal Reinvestment Account in accordance with its
customary policies and procedures.

 

(i)                
On each Advance Date, the Issuer will cause any Advances made by the Noteholders to be deposited into the Principal Reinvestment
Account or as directed in the related Advance Request.

 

(ii)             
On each Transfer Date during the Investment Period, subject to satisfaction of the conditions set forth in Section 2.05
and in the Note Funding Agreement, the Servicer will direct the Trustee in writing to withdraw the lesser of amounts on deposit
in the Principal Reinvestment Account and the Subsequent Loan Cash Purchase Price for Subsequent Loans being conveyed by the Originator
to the Issuer on such Transfer Date and remit such amount to the Originator against delivery of such Subsequent Loans.

 

(iii)           
With respect to a Payment Date, so long as the Aggregate Outstanding Note Balance will not exceed the Borrowing Base after
giving effect to the distributions on such Payment Date, the Issuer (or the Servicer on behalf of the Issuer) may, on the related
Reference Date, direct the Trustee in writing to withdraw amounts from the Principal Reinvestment Account and deposit such amounts
to the Distribution Account for application under Section 7.05(b)(i).

 

(iv)            
On the Investment Period Termination Date, once a Responsible Officer of the Trustee has written notice or actual knowledge
of the Investment Period Termination Date occurring, the Trustee shall withdraw all amounts on deposit in the Principal Reinvestment
Account and deposit such amounts into the Collection Account as Principal Collections.

 

(c)              
[Reserved].

 

(d)              
Alternative Collection Practices. With respect to certain Loans, the Originator may make Collections thereon by debiting
the appropriate amounts from designated accounts of the related Obligor. Within two Business Days of receipt by the Originator
of the amounts so debited, the Originator shall cause the amounts so received belonging to the Issuer to be deposited into the
Lockbox Account, and thereupon credited to the Collection Account.

 

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(e)              
 Other Accounts. Amounts representing payments sent by Obligors and by paying agents under Agented Loans, Co-Agented
Loans and Third Party Agented Loans with respect to Loans pledged to the Trustee as well as with respect to Loans not pledged to
the Trustee may be deposited into accounts other than the Lockbox Account. Within two Business Days of receipt by the Originator
or the Issuer of any amounts representing payments sent by Obligors and/or by paying agents under Agented Loans, Co-Agented Loans
and Third Party Agented Loans with respect to Loans pledged to the Trustee, the Servicer, as agent for the Issuer, and the Originator
shall cause the amounts so received belonging to the Issuer to be deposited into the Lockbox Account, and thereupon credited to
the Collection Account.

 

(f)               
Except as otherwise agreed in writing between the Issuer, the Originator and the Trustee, the Issuer shall retain the authority
to institute, participate and join in any plan of reorganization, readjustment, merger or consolidation with respect to the Issuer
of any Permitted Investments held hereunder, and, in general, to exercise each and every other power or right with respect to each
such asset or investment as individuals generally have and enjoy with respect to their own assets and investment, including power
to vote upon any securities.

 

Section 7.02       
General Reserve Account.

 

(a)              
The Securities Intermediary shall establish and maintain as a segregated account, the General Reserve Account in the name
of the Trustee for the benefit of the Noteholders. Amounts deposited to the General Reserve Account will be invested by the Securities
Intermediary at the written direction of the Servicer in Permitted Investments. Absent such written directions, such amounts will
remain uninvested. The General Reserve Account shall be held in one Eligible Deposit Account with a Qualified Institution in the
form of a segregated account in a corporate trust department wherein the moneys therein may be invested in Permitted Investments.
The Servicer shall monitor the General Reserve Account in accordance with its customary policies and procedures.

 

(b)              
Deposits to the General Reserve Account shall be made in accordance with Section 7.05(a)(i)(6).

 

(c)              
Subject to Sections 7.02(d) and (e) below, if on any Payment Date, Interest Collections, Principal Collections
and any other amounts on deposit in the Collection Account on the last day of the related Collection Period (without giving effect
to any deposit from the General Reserve Account) would be insufficient to pay any portion of the Required Payments on such Payment
Date, the Servicer shall direct the Securities Intermediary in writing (via the related Monthly Report) to withdraw from the General
Reserve Account an amount equal to the lesser of such insufficiency and the amount on deposit in the General Reserve Account and
deposit such amount in the Distribution Account as Principal Proceeds on the Business Day immediately preceding such Payment Date.

 

(d)              
Upon the occurrence of a Rapid Amortization Event or an Event of Default, the Servicer shall direct the Securities Intermediary
in writing (via the related Monthly Report) to withdraw all amounts on deposit in the General Reserve Account and deposit such
amounts to the Distribution Account for distribution in accordance with Section 7.05(b)(iii) or Section 7.05(c).

 

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(e)              
 On the earlier to occur of the Legal Final Payment Date and the Payment Date on which the Aggregate Outstanding Note Balance
is reduced to zero, the Servicer shall direct the Securities Intermediary in writing (via the related Monthly Report) to withdraw
all amounts on deposit in the General Reserve Account and deposit such amounts to the Distribution Account.

 

(f)               
Except if a Rapid Amortization Event or an Event of Default shall have occurred and is continuing, on any Payment Date,
if amounts on deposit in the General Reserve Account are greater than the General Reserve Account Required Balance (after giving
effect to all other distributions and disbursements on such Payment Date), the Servicer shall direct the Securities Intermediary
in writing (via the related Monthly Report) to withdraw funds in excess of the General Reserve Account Required Balance from the
General Reserve Account and disburse such amounts to (i) the Principal Reinvestment Account as Principal Collections during the
Investment Period or (ii) the Collection Account as Interest Collections after the Investment Period.

 

Section 7.03       
Collection Account.

 

(a)              
The Securities Intermediary shall establish and maintain as a segregated account the Collection Account in the name of the
Trustee for the benefit of the Noteholders. The Collection Account shall be held in one Eligible Deposit Account with a Qualified
Institution in the form of a segregated account in a corporate trust department. Amounts in the Collection Account shall be invested
in Permitted Investments at the written direction of the Servicer. Absent such written direction, such amounts shall remain uninvested.
The Servicer will monitor the Collection Account in accordance with its customary policies and procedures.

 

(b)              
The Servicer shall deposit or cause to be deposited into the Collection Account within two Business Days of the deposit
thereof into the Lockbox Account all Collections (including, for the avoidance of doubt, amounts received from co-lenders, collateral
agents or paying agents under Agented Loans, Co-Agented Loans and Third Party Agented Loans and amounts debited from Obligor accounts
as described in Section 7.01(d)) so deposited into the Lockbox Account. The Servicer will retain in the Collection Account,
subject to withdrawal as permitted by this Section 7.03, the following amounts received by the Servicer, without duplication:

 

(i)                
all Collections accruing and received on or after the Cutoff Date, Subsequent Loan Cutoff Date or Substitute Loan Cutoff
Date, as applicable;

 

(ii)             
any other proceeds from any other Related Property securing the Loans (other than amounts released to the Obligor, other
creditors or any other Person in accordance with Applicable Law, the Required Loan Documents, the Operating Guidelines and the
Servicing Standard) and any disbursements, payments or proceeds from any other Collateral;

 

(iii)           
any amounts paid in connection with the purchase or repurchase of any Loan;

 

(iv)            
 any amount required to be deposited in the Collection Account pursuant to Section 5.10 or this Section 7.03;
and

 

(v)              
the amount of any gains and interest earned in connection with investments in Permitted Investments from any account.

 

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(c)              
The Servicer shall have no obligation to deposit into the Collection Account any amounts in respect of Excluded Property
or any amounts mistakenly deposited in the Lockbox Account or other amounts due on Loans that the Servicer is entitled to retain.

 

(d)              
Not later than the close of business on each Reference Date immediately preceding a Payment Date, the Servicer will remit
to the Lockbox Account any Scheduled Payment Advance that the Servicer determines to make at its option. The application of Scheduled
Payment Advances will not prevent a Loan from being or becoming a Delinquent Loan or a Defaulted Loan.

 

(e)              
Notwithstanding Section 7.03(b), if (i) the Servicer makes a deposit into the Lockbox Account in respect of a Collection
of a Loan in the Collateral and such Collection was received by the Servicer in the form of a check that is not honored for any
reason or (ii) the Servicer makes a mistake with respect to the amount of any Collection and deposits an amount that is less than
or more than the actual amount of such Collection, the Servicer shall appropriately adjust the amount subsequently deposited into
the Lockbox Account to reflect such dishonored check or mistake. Any Scheduled Payment in respect of which a dishonored check is
received shall be deemed not to have been paid.

 

(f)               
The foregoing requirements for deposit in the Collection Account and the Lockbox Accounts shall be exclusive, it being understood
and agreed that, without limiting the generality of the foregoing, payments with respect to Liquidation Expenses and Excluded Property
may not be deposited by the Servicer in the Collection Account.

 

(g)               Prior
to the occurrence of a Servicer Default or an Event of Default and acceleration of the Notes, to the extent there are
uninvested available amounts deposited in the Collection Account on or before 3:00 p.m. (New York, New York time), all such
amounts shall be invested by the Securities Intermediary in Permitted Investments selected by the Servicer in written
instructions (which may be in the form of standing instructions) delivered to the Qualified Institution holding such
Transaction Account, that mature no later than the Business Day immediately preceding the next Payment Date; to the extent
that there are uninvested available funds deposited after 3:00 p.m. (New York, New York time), such funds shall be swept into
the overnight funds investment which shall be a Permitted Investment selected by the Servicer in written instructions (which
may be in the form of standing instructions) delivered to the Qualified Institution holding such Transaction Account. From
and after the occurrence of a Servicer Default or an Event of Default and acceleration of the Notes, to the extent there are
uninvested amounts in the Collection Account (net of losses and investment expenses), all amounts shall remain uninvested.
Subject to the restrictions herein, the Servicer or Trustee may purchase a Permitted Investment from itself or an Affiliate
with respect to investment of funds in the Transaction Accounts. Any investment earnings (net of losses and investment
expenses) on funds held in the Collection Account shall be treated as Interest Collections and shall be deposited therein
pursuant to this Section 7.03 and distributed on the next Payment Date pursuant to Section 7.05. The Originator
and the Issuer agree and acknowledge that the Trustee is to have “control” (within the meaning of the UCC) of
collateral composed of “investment property” or deposit accounts (within the meaning of the UCC) for all purposes
of this Agreement.

 

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(h)              
The Servicer may (and, for the purposes of clause (i) below, shall), at any time upon one Business Day written notice
to the Trustee or, if different, the depository institution then holding the Collection Account, request withdrawals from the Collection
Account for the following purposes:

 

(i)                
to remit to the Trustee on the Business Day immediately preceding any Payment Date, for deposit in the Distribution Account,
Collections received during the immediately preceding Collection Period (other than any Transfer Deposit Amounts or other amounts
still available to invest in Substitute Loans pursuant to Section 11.01) and all amounts deposited into the Collection Account
from the General Reserve Account pursuant to Section 7.02;

 

(ii)             
[Reserved];

 

(iii)           
to withdraw any amount received from an Obligor that is recoverable and sought to be recovered as a voidable preference
by a trustee in bankruptcy pursuant to the Bankruptcy Code in accordance with a final, nonappealable order of a court having competent
jurisdiction;

 

(iv)            
to make investments in Permitted Investments;

 

(v)              
to withdraw any funds deposited in the Collection Account that were not required or permitted to be deposited therein or
were deposited therein in error (including without limitation amounts in respect of Loans that were purchased or replaced pursuant
to Section 2.06, Section 2.07 or Section 11.01 to the extent such amount is attributable to a time after the
effective date of such purchase or replacement);

 

(vi)            
to withdraw Principal Collections in accordance with an Advance Request delivered by the Issuer for deposit to the Principal
Reinvestment Account;

 

(vii)           
to acquire Substitute Loans as contemplated by Section 2.05(a) to the extent funds have been deposited by the Originator
for such purpose pursuant to Section 11.01);

 

(viii)          
to clear and terminate the Collection Account upon the termination of this Agreement.

 

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Section 7.04       Noteholder
Distributions.

 

(a)              
Each Noteholder as of the related Record Date shall be paid on the next succeeding Payment Date by check mailed to such
Noteholder at the address for such Noteholder appearing on the Note Register or by wire transfer to the account directed by such
Noteholder if such Noteholder provides written instructions to the Trustee at least five Business Days prior to such Payment Date,
which instructions may be in the form of a standing order.

 

(b)              
The Trustee shall serve as the paying agent hereunder and shall make the payments to the Noteholders required hereunder.
The Trustee hereby agrees that all amounts held by it for payment hereunder will be held in a segregated account for the benefit
of the Noteholders.

 

(c)              
All amounts distributed pursuant to the terms of this Agreement shall be deemed free and clear of the Lien of the Indenture.

 

Section 7.05       
Allocations and Distributions.

 

(a)              
Allocations of Interest Collections. On the Business Day immediately preceding each Payment Date, the Trustee, upon
written instructions from the Servicer, will transfer all Interest Collections constituting Available Funds to the Distribution
Account. Such amounts will remain uninvested while deposited in the Distribution Account. On each Payment Date (other than a Payment
Date following an Event of Default and acceleration of the Notes), the Trustee, upon written instructions from the Servicer (in
the form of the Monthly Report), will distribute the Interest Collections on deposit in the Distribution Account to the following
parties in the order of priority set forth below. With respect to the Notes then Outstanding, payments shall be made pro rata to
the Holders of Notes based on their respective Percentage Interests.

 

(i)                
During the Investment Period or Amortization Period.

 

(1)              
pro rata, based on the amounts owed under this clause (1), to the payment of (i) Administrative Expenses owed to
the respective parties, subject to the limitations set forth in the definition thereof and in the priority stated in the definition
thereof and (ii) indemnities then due to any such Persons; provided that (a) the cumulative amount of Administrative Expenses
(other than the Trustee Fee and the Backup Servicer Fee) and indemnities paid to the Trustee, the Custodian, the Backup Servicer
and the Lockbox Bank under this clause (1) in any rolling twelve month period shall not exceed $300,000 as of the first
day of the related Collection Period and (b) the cumulative amount of Administrative Expenses (other than the Trustee Fee and the
Backup Servicer Fee) and indemnities paid to parties other than the Trustee, the Custodian, the Backup Servicer and the Lockbox
Bank under this clause (1) in any rolling twelve month period shall not exceed $200,000 as of the first day of the related
Collection Period;

 

(2)              
pro rata, based on the amounts owed to such Persons under this clause (2), (i) to the Servicer, to the extent not
previously reimbursed, the sum of (x) Scheduled Payment Advances on such Loans and (y) Servicing Advances on such Loans;

 

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(3)              
accrued and unpaid Servicing Fees;

 

(4)              
 (i) to any Successor Servicer, the Successor Servicer Engagement Fee and (ii) to any Successor Servicer, any Servicing
Transfer Costs, provided that the cumulative amount of such Servicing Transfer Costs shall not exceed $150,000;

 

(5)              
to the Noteholders, the Interest Amount for the related Interest Period, if any, and any Unused Fee;

 

(6)              
if the amount on deposit in the General Reserve Account is less than the General Reserve Account Required Balance, to the
General Reserve Account, fifty percent (50%) of any remaining amounts until amounts on deposit in the General Reserve Account shall
equal the General Reserve Account Required Balance;

 

(7)              
to the payment of the amounts referred to in clause (2) of Section 7.05(b)(i) or clauses (2) and (3) of Section 7.05(b)(ii)
(as applicable and in the priority stated therein), but only to the extent not paid in full thereunder and subject to the limitations
set forth therein;

 

(8)              
pro rata, based on the amounts owed to such Persons under this clause (8), to the payment of amounts referred to
in clauses (1) and (2), without giving effect to any caps, but only to the extent not paid in full thereunder;

 

(9)              
to the Servicer in connection with any Permitted Distribution; and

 

(10)          
any remaining amounts to or at the written direction of the Issuer.

 

To the extent that any fees, expenses and
indemnities of the Trustee are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the
next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in
this Section 7.05(a)(i).

 

(ii)             
During the Rapid Amortization Period

 

(1)               pro
rata, based on the amounts owed to the Trustee, the Custodian, the Backup Servicer, and the Lockbox Bank under this clause
(1), to the payment of (i) Administrative Expenses owed to such parties, subject to the limitations set forth in the
definition thereof and (ii) indemnities then due to any such Persons; provided that the cumulative amount of
Administrative Expenses and indemnities paid under this clause (1) or clause (1) of 7.05(a)(i) in any rolling twelve
month period shall not exceed $500,000 as of the first day of the related Collection Period;

 

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(2)              
pro rata, based on the amounts owed to such Persons under this clause (2), (i) to the Servicer, to the extent not
previously reimbursed, the sum of (x) Scheduled Payment Advances on such Loans and (y) Servicing Advances on such Loans;

 

(3)              
accrued and unpaid Servicing Fees;

 

(4)              
(i) to the Backup Servicer, accrued and unpaid backup servicing fees; (ii) to the Custodian, any accrued and unpaid custodial
fees; (iii) to any Successor Servicer, the Successor Servicer Engagement Fee and (iv) to any Successor Servicer, any Servicing
Transfer Costs, provided that the cumulative amount of such Servicing Transfer Costs shall not exceed $150,000;

 

(5)              
to the Noteholders, the Interest Amount for the related Interest Period, if any, and any Unused Fee;

 

(6)              
reserved;

 

(7)              
to the Noteholders, all remaining amounts in payment of principal of the Notes until the Aggregate Outstanding Note Balance
is reduced to zero;

 

(8)              
pro rata, based on the amounts owed to such Persons under this clause (8), to the payment of amounts referred to
in clauses (1) and (2), without giving effect to any caps but only to the extent not paid in full thereunder; and

 

(9)              
any remaining amounts to or at the written direction of the Issuer.

 

To the extent that any fees, expenses and
indemnities of the Trustee are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the
next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in
this Section 7.05(a)(ii).

 

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(b)               Allocations
of Principal Collections and General Reserve Available Funds. On the Business Day immediately preceding each Payment
Date, the Trustee, upon written instructions from the Servicer (in the form of the Monthly Report), will transfer all (A)
Principal Collections on deposit in the Collection Account constituting Available Funds, (B) amounts deposited into the
Distribution Account pursuant to Section 7.01(b)(iii), and (C) all amounts, if any, required to be transferred
pursuant to Section 7.02 to the Distribution Account. Such amounts will remain uninvested while deposited in the
Distribution Account. On each Payment Date (other than a Payment Date following an Event of Default and acceleration of the
Notes), the Trustee, upon written instructions from the Servicer (in the form of the Monthly Report), will distribute the
Principal Collections and any General Reserve Available Funds on deposit in the Distribution Account to the following parties
in the order of priority set forth below. With respect to the Notes then Outstanding, payments shall be made pro rata to the
Holders of Notes based on their respective Percentage Interests.

 

(i)                
During the Investment Period

 

(1)              
to the payment of the amounts referred to in clauses (1) through (5) of Section 7.05(a)(i) (in the priority
stated therein), but only to the extent not paid in full thereunder and subject to the limitations set forth therein;

 

(2)              
to the Noteholders, the Principal Distribution Amount in payment of principal on the Notes;

 

(3)              
to the payment of the amounts referred to in clause (8) of Section 7.05(a)(i), but only to the extent not paid
in full thereunder and subject to the limitations set forth therein;

 

(4)              
to the Principal Reinvestment Account, the Principal Reinvestment Account Allocation Amount determined by the Servicer;
and

 

(5)              
any remaining amounts to or at the written direction of the Issuer.

 

To the extent that any fees, expenses and
indemnities of the Trustee are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the
next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in
this Section 7.05(b)(i).

 

(ii)             
During the Amortization Period

 

(1)              
to the payment of the amounts referred to in clauses (1) through (5) of Section 7.05(a)(i) (in the priority
stated therein), but only to the extent not paid in full thereunder and subject to the limitations set forth therein;

 

(2)              
to the Noteholders, the Principal Distribution Amount in payment of principal on the Notes;

 

(3)              
to the Noteholders, all remaining amounts in payment of the Aggregate Outstanding Note Balance on the Legal Final Payment
Date;

 

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(4)              
 to the payment of the amounts referred to in clause (8) of Section 7.05(a)(i), but only to the extent not paid
in full thereunder and subject to the limitations set forth therein; and

 

(5)              
any remaining amounts to or at the written direction of the Issuer.

 

To the extent that any fees, expenses and
indemnities of the Trustee are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the
next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in
this Section 7.05(b)(ii).

 

(iii)           
During the Rapid Amortization Period

 

(1)              
to the payment of the amounts referred to in clauses (1) through (5) of Section 7.05(a)(ii) (in the priority
stated therein), but only to the extent not paid in full thereunder and subject to the limitations set forth therein;

 

(2)              
to the Noteholders, all remaining amounts in payment of principal on the Notes until the Aggregate Outstanding Note Balance
is reduced to zero;

 

(3)              
to the payment of the amounts referred to in clause (5) of Section 7.05(a)(ii), but only to the extent not paid
in full thereunder and subject to the limitations set forth therein;

 

(4)              
any remaining amounts to or at the written direction of the Issuer.

 

To the extent that any fees, expenses and
indemnities of the Trustee are not paid on a Payment Date due to insufficiency of funds, such unpaid fees shall be paid on the
next Payment Date on which funds are available to pay such fees in accordance with the priority of payments set forth above in
this Section 7.05(b)(iii).

 

(c)              
Default Allocations. On each Payment Date (or such other date as selected by the Trustee pursuant to the Indenture)
(i) following an acceleration of the Notes pursuant to Section 5.02 of the Indenture that has not been rescinded and annulled
in accordance with the terms of the Indenture, or (ii) following the institution of proceedings for the foreclosure of the Indenture
and the liquidation of the Collateral pursuant to Section 5.04(a)(ii) of the Indenture, the Trustee will transfer all Collections
on deposit in the Collection Account, including Proceeds from the liquidation of the Collateral, to the Distribution Account. On
each Payment Date (or such other date as selected by the Trustee pursuant to the Indenture), the Trustee will distribute such amounts
together with Available Funds and all other funds available for distributions on the Notes, to the extent there are sufficient
funds, to the following parties in the order of priority set forth below (in the form of the Monthly Report). With respect to the
Notes then Outstanding, payments shall be made pro rata to the Holders of Notes based on their respective Percentage Interests.

 

(1)              
 to the Trustee, the Servicer, the Backup Servicer, the Custodian and the Lockbox Bank, certain amounts due and owing to
such entities, pursuant to the priorities in clauses (1) and (2) of Sections 7.05(a)(i) and 7.05(a)(ii), and without regard
to the caps set forth in such clauses;

 

(2)              
to the Noteholders, any unpaid Interest Amounts;

 

(3)              
to the Noteholders, in payment of principal on the Notes until the Aggregate Outstanding Note Balance is reduced to zero;
and

 

(4)              
any remaining amounts to or at the written direction of the Issuer.

 

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ARTICLE
VIII

SERVICER DEFAULT; SERVICER TRANSFER

 

Section 8.01       
Servicer Default.

 

“Servicer
Default” means the occurrence of any of the following:

 

(a)              
any failure by the Servicer to remit or cause to be remitted when due any payment, transfer or deposit required to be remitted
by the Servicer to the Trustee under the terms of this Agreement or the other Transaction Documents which continues unremedied
for a period of 5 days, it being understood that the Servicer shall not be responsible for the failure of either the Issuer or
the Trustee to remit funds that were received by the Issuer or the Trustee from or on behalf of the Servicer in accordance with
this Agreement or the other Transaction Documents; or

 

(b)              
failure by the Servicer to duly observe or perform any covenants or agreements of the Servicer set forth in this Agreement
or the other Transaction Documents (other than as otherwise identified in this definition of Servicer Default), which failure materially
and adversely affects the rights of the Issuer or the Noteholders and continues unremedied for a period of 30 days (if such failure
or breach can be cured) after the first to occur of (i) the date on which a Responsible Officer of the Servicer has actual knowledge
of such failure, (ii) the date on which written notice of such failure requiring the same to be remedied shall have been given
to a Responsible Officer of the Servicer by the Trustee or to a Responsible Officer of the Servicer and the Trustee by any Noteholder
or (iii) the date the Servicer shall assign any of its duties hereunder other than as expressly permitted hereby;

 

(c)               any
representation or warranty of the Servicer in this Agreement or any other Transaction Document or in any certificate
delivered under this Agreement or any other Transaction Document (other than any representation or warranty relating to a
Loan that has been purchased by the Servicer) shall prove to have been incorrect when made, which has a material adverse
effect on the Noteholders and which continues unremedied for 30 days after discovery thereof by a Responsible Officer of the
Servicer or after the date on which written notice of such failure, requiring the same to be remedied, shall have been
delivered to the Servicer by the Trustee or any Noteholder;

 

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(d)              
a decree or order of a court or agency or supervisory authority having jurisdiction for the appointment of a conservator
or receiver or liquidator in any Insolvency Proceedings, or for the winding-up or liquidation of its affairs, shall have been entered
against the Servicer and such decree or order shall have remained in force, undischarged or unstayed for a period of 60 consecutive
days;

 

(e)              
the Servicer, the Issuer or the Fund shall consent to the appointment of a conservator or receiver or liquidator in any
Insolvency Proceedings of or relating to the Servicer or of or relating to all or substantially all of the Servicer’s property;

 

(f)               
the Servicer shall cease to be eligible to continue as Servicer under this Agreement;

 

(g)             
the Servicer, the Issuer or the Fund shall file a petition to take advantage of any applicable Insolvency Laws, make an
assignment for the benefit of its creditors or generally fail to pay its debts as they become due;

 

(h)              
the willful breach of any provision of this Agreement applicable to the Servicer;

 

(i)              
the conviction or indictment of a senior officer of the Servicer for a criminal offense related to the Issuer’s, Originator’s
or Servicer’s business activities;

 

(j)               
a Change of Control (as defined in the Indenture); or

 

(k)              
an Event of Default.

 

Notwithstanding the
foregoing, a delay in or failure of performance referred to under Section 8.01(a) for a period of five Business Days or
referred to under Section 8.01(b) for a period of 60 days (in addition to the 30-day period provided therein) shall not
constitute a Servicer Default until the expiration of such additional five Business Days or 60 days, respectively, if such delay
or failure could not be prevented by the exercise of reasonable diligence by the Servicer and such delay or failure was caused
by an act of God or other events beyond the Servicer’s control.

 

Section 8.02             
Servicer Transfer.

 

(a)              
If a Servicer Default has occurred and is continuing (subject to any applicable cure period), the Trustee or the Issuer,
at the direction of the Majority Noteholders, shall terminate all of the rights and obligations of the Servicer hereunder by notice
to the Servicer (a “Termination Notice”), whereupon the Backup Servicer will succeed to all of the Servicer’s
management, administrative, servicing, custodial and collection functions as Servicer hereunder within 30 days of receiving a Termination
Notice.

 

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(b)               If
the Backup Servicer is unable to assume the role of the Servicer after a Termination Notice is delivered pursuant to Section
8.02(a), the Trustee (i) will provide the Originator with written notice of such circumstances (and the Originator shall
promptly forward a copy of such notice to the Rating Agency) and (ii) may appoint a successor servicer with assets of at
least $50,000,000 and whose regular business includes the servicing of assets similar to the Loan Assets (either the Backup
Servicer or such other Person appointed successor servicer, the “Successor Servicer”). Such proposed
Successor Servicer shall become the Successor Servicer once it assumes the Servicer’s responsibilities and obligations
in accordance with Section 8.03. If such proposed Successor Servicer is unable to assume the responsibilities and
obligations of the Servicer, the Trustee shall propose an alternative established servicing institution to serve as the
Successor Servicer. Such other proposed Successor Servicer shall become the Successor Servicer once it assumes the
Servicer’s responsibilities and obligations in accordance with this Agreement. The appointment of any Successor
Servicer (other than the Backup Servicer) is subject to the prior written approval of the Majority Noteholders. If no
Successor Servicer has been appointed and approved following the above procedures within 120 days of the delivery of a
Termination Notice or notice of resignation by the Servicer, then any of the Issuer, Trustee, removed or resigning Servicer
or any Noteholder may petition any court of competent jurisdiction for the appointment of a Successor Servicer, which
appointment will not require the consent of, nor be subject to the approval of the Issuer, the Trustee or any Noteholder.

 

(c)               On
the date that a Successor Servicer shall have been appointed and accepted such appointment pursuant to Section 8.03 (such
appointment being herein called a “Servicer Transfer”), all rights, benefits, fees, indemnities, authority
and power of the Servicer under this Agreement, whether with respect to the Loans, the Loan Files or otherwise, shall pass to
and be vested in such Successor Servicer pursuant to and under this Section 8.02; and, without limitation, the
Successor Servicer is authorized and empowered to execute and deliver on behalf of the Servicer, as attorney-in-fact or
otherwise, any and all documents and other instruments, and to do any and all acts or things necessary or appropriate to
effect the purposes of such notice of termination. The Servicer agrees to cooperate with the Successor Servicer in effecting
the termination of the responsibilities and rights of the Servicer hereunder, including, without limitation, the transfer to
the Successor Servicer for administration by it of all cash amounts which shall at the time be held by the Servicer for
deposit, or have been deposited by the Servicer, in a Transaction Account or thereafter received with respect to the Loans
and Related Property. The Servicer shall transfer to the Successor Servicer (i) all records held by the Servicer relating to
the Loans and Related Property in such electronic form as the Successor Servicer may reasonably request and (ii) any Loan
Files in the Servicer’s possession. In addition, the Servicer shall permit access to its premises (including all
computer records and programs) to the Successor Servicer or its designee, shall pay the reasonable transition expenses of the
Successor Servicer, and assign or sub-license to the Successor Servicer for the remainder of the term of this Agreement all
intellectual property owned or licensed by or assigned to the Servicer that is necessary to perform the duties of Successor
Servicer hereunder (to the extent that the Servicer has the right that the Servicer has the right to assign or sub-license
such intellectual property). Upon a Servicer Transfer, the Successor Servicer shall also be entitled to receive the Servicing
Fee thereafter payable for performing the obligations of the Servicer and any additional amounts payable to the Servicer
hereunder. Any indemnities provided in this Agreement or the other Transaction Documents in favor of the Servicer, any
Servicing Fee (together with accrued interest thereon), any other fees, costs and expenses and any Scheduled Payment
Advances, Servicing Advances and Nonrecoverable Advances, in any case, that have accrued and/or are due and unpaid or
unreimbursed to the Servicer shall survive the termination of the Servicer and its replacement with a Successor Servicer and
the Servicer being replaced shall remain entitled thereto until paid hereunder in accordance with the Priority of
Payments.

 

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(d)              
The Backup Servicer may resign, either as Backup Servicer or as Successor Servicer, upon ninety (90) days prior written
notice to the Trustee, the Issuer, and the Servicer (in the case of a resignation as the Backup Servicer); provided, however,
such resignation shall not become effective until there is a replacement Successor Servicer or Backup Servicer in place that is
acceptable to the Majority Noteholders. Upon the resignation of the Backup Servicer, the Servicer shall appoint a successor Backup
Servicer (subject to the previous sentence) and if it does not do so within 120 days of the Backup Servicer’s resignation,
the Backup Servicer may petition a court of competent jurisdiction for the appointment of a successor. Upon the resignation of
the Successor Servicer, the Majority Noteholders shall appoint a Successor Servicer and if they does not do so within 120 days
of the Successor Servicer’s resignation, the Successor Servicer may petition a court of competent jurisdiction for the appointment
of a successor.

 

Section 8.03             
Acceptance by Successor Servicer; Reconveyance; Successor Servicer to Act.

 

(a)              
Subject to Section 8.04, no appointment of a Successor Servicer (other than the Backup Servicer) shall be effective
until the Successor Servicer shall have executed and delivered to the Issuer and the Trustee a written acceptance of such appointment
and of the duties of Servicer hereunder, subject to Section 8.03(d). The Servicer shall continue to perform all servicing
functions under this Agreement until the date the Successor Servicer shall have so executed and delivered such written acceptance.

 

(b)              
[Reserved].

 

(c)              
As compensation, a Successor Servicer so appointed shall be entitled to receive the Servicing Fee, together with any other
servicing compensation in the form of assumption fees, late payment charges or otherwise as provided in the Transaction Documents
that thereafter are payable under this Agreement, including, without limitation, all reasonable costs (including reasonable attorneys’
fees) incurred in connection with transferring the servicing obligations under this Agreement and amending this Agreement (if necessary)
to reflect such transfer. Neither the Trustee nor any Successor Servicer shall be held liable by reason of any failure to make,
or any delay in making, any distribution hereunder or any portion thereof caused by (i) the failure of the Servicer to deliver,
or any delay in delivering, cash, documents or records to it, or (ii) restrictions imposed by any regulatory authority having jurisdiction
over the Servicer. To the extent that either the Trustee or the Backup Servicer incurs any extraordinary expenses in connection
with a servicing transfer, it shall be entitled to reimbursement therefor as an Administrative Expense pursuant to the Priority
of Payments.

 

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(d)               On
or after a Servicer Transfer, the Successor Servicer shall be the successor in all respects to the Servicer in its capacity
as servicer under this Agreement and the transactions set forth or provided for herein with respect to servicing of the
Collateral and shall be subject to all the responsibilities, duties and liabilities relating thereto placed on the Servicer
by the terms and provisions hereof, and the terminated Servicer shall be relieved of such responsibilities, duties and
liabilities arising after such Servicer Transfer; provided that (i) the Successor Servicer will not assume any
obligations of the Servicer described in Section 8.02(c), (ii) the Successor Servicer shall not be liable for any acts or
omissions of the Servicer occurring prior to such Servicer Transfer or for any breach by the Servicer of any of its
representations and warranties contained herein or in any other Transaction Document, (iii) the Successor Servicer shall have
no obligation to pay any taxes required to be paid by the Servicer (provided, that the Successor Servicer shall pay any
income taxes for which it is liable), (iv) the Successor Servicer shall have no obligation to pay any of the fees and
expenses of any other party to the transactions contemplated hereby, (v) the Successor Servicer shall have no liability
or obligation with respect to any Servicer indemnification obligations of any prior Servicer, including the initial Servicer,
(vi) the Successor Servicer shall have no obligation to perform any repurchase obligations of the Servicer and (vii) the
Successor Servicer shall have no obligation to make any Servicing Advances or Scheduled Payment Advances. Notwithstanding
anything else herein to the contrary, in no event shall the Trustee be liable for any Servicing Fee or for any differential
in the amount of the servicing fee paid hereunder and the amount necessary to induce any Successor Servicer to act as
Successor Servicer under this Agreement and the transactions set forth or provided for herein, including any Servicing
Transfer Costs. The Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary
to effectuate any such succession. The terminated Servicer shall remain entitled to payment and reimbursement of the amounts
set forth in the last sentence of Section 8.02(b) notwithstanding its termination hereunder, to the same extent as if
it had continued to service the Loans hereunder.

 

(e)              
Notwithstanding anything contained in this Agreement or the Indenture to the contrary, no Successor Servicer, shall be responsible
for the accounting, records (including computer records) and work of the Servicer or any other predecessor Servicer relating to
the Loans (collectively, the “Predecessor Servicer Work Product”). If any error, inaccuracy, omission or incorrect
or non-standard practice or procedure (collectively, “Errors”) exists in any Predecessor Servicer Work Product
and such Errors make it materially more difficult to service or should cause or materially contribute to such Successor Servicer
making or continuing any Errors (collectively, “Continued Errors”), such Successor Servicer shall have no liability
for such Continued Errors; provided, however, that each Successor Servicer agrees to use commercially reasonable efforts
to prevent Continued Errors. In the event that a Successor Servicer becomes aware of Errors or Continued Errors, such Successor
Servicer shall, with the prior consent of the Trustee, use commercially reasonable efforts to reconstruct and reconcile such data
to correct such Errors and Continued Errors and to prevent future Continued Errors. A Successor Servicer shall be entitled to recover
its costs thereby expended in accordance with the Priority of Payments.

 

(f)               
The Successor Servicer is authorized to accept and rely on all accounting records (including computer records) and work
product of the prior Servicer hereunder relating to the Collateral without any audit or other examination.

 

Section 8.04             
Notification to Noteholders.

 

(a)              
Promptly following the occurrence of any Servicer Default, the Servicer shall give written notice thereof to the Trustee,
the Backup Servicer, the Originator and the Rating Agency at the addresses described in Section 13.04, and the Trustee shall
promptly forward such notice to the Noteholders at their respective addresses appearing on the Note Register.

 

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(b)              
 Within ten days following receipt of a Termination Notice or notice of appointment of a Successor Servicer pursuant to
this Article VIII, the Trustee shall give written notice thereof to the Originator (and the Originator shall promptly forward
a copy of such notice to the Rating Agency) at the addresses described in Section 13.04 and to the Noteholders at their
respective addresses appearing on the Note Register.

 

Section 8.05              
Effect of Transfer.

 

(a)              
After a Servicer Transfer, the terminated Servicer shall have no further obligations with respect to the management, administration,
servicing, custody or collection of the Loans as Servicer hereunder and, subject to Section 8.03(d), the Successor Servicer
appointed pursuant to Section 8.03 shall have all of such obligations, except that the terminated Servicer will transmit
or cause to be transmitted directly to the Successor Servicer promptly on receipt and in the same form in which received, any amounts
(properly endorsed where required for the Successor Servicer to collect them) received as Collections upon or otherwise in connection
with the Collateral.

 

(b)              
A Servicer Transfer shall not affect the rights and duties of the parties hereunder (including but not limited to the obligations
and indemnities of the Servicer) other than those relating to the management, administration, servicing, custody or collection
of the Loans.

 

Section 8.06             
Database File.

 

Upon reasonable request
by the Trustee or the Successor Servicer, the Servicer will provide the Successor Servicer with a magnetic tape or Microsoft Excel
or similar spreadsheet file containing the database file for each Loan on and as of the Business Day before the actual commencement
of servicing functions by the Successor Servicer following the occurrence of a Servicer Default.

 

Section 8.07             
Waiver of Defaults.

 

The Majority Noteholders
may, on behalf of all the Noteholders, waive any default by the Servicer of its obligations hereunder and all consequences of such
default, except a default in making any required deposits to the Collection Account or the Distribution Account. No such waiver
or cure shall extend to any subsequent or other default or impair any right consequent thereto except to the extent expressly so
waived.

 

ARTICLE
IX

REPORTS

 

Section 9.01              
Monthly Reports.

 

(a)              
With respect to each Payment Date and the related Collection Period, the Servicer shall prepare a statement (a “Monthly
Report”) containing the information set forth in Exhibit G hereto with respect to the preceding Collection Period
and will deliver a copy of such Monthly Report to the Trustee no later than the related Reference Date.

 

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(b)              
 [Reserved].

 

(c)              
On or before each Payment Date, the Trustee will provide or make available electronically the Monthly Report received by
it on the related Reference Date to the Rating Agency and the Noteholders in accordance with Section 3.29 of the Indenture.

 

Section 9.02              
[Reserved].

 

Section 9.03              
Preparation of Reports; Officer’s Certificate.

 

(a)              
The Servicer shall cooperate with the Trustee in connection with the delivery of the Monthly Reports. Without limiting the
generality of the foregoing and the obligation of the Servicer to deliver Monthly Reports to the Trustee, the Servicer shall supply
in a timely fashion any information as to any determinations required to be made by the Servicer hereunder or under the Indenture
and such other information as is maintained by the Servicer that the Trustee may from time to time request with respect to the
Collateral. Nothing herein shall obligate the Trustee to determine independently any characteristic of a Loan, including without
limitation whether any item of Indenture Collateral is an Agented Loan, Co-Agented Loan, Third Party Agented Loan or Participated
Loan, any such determination being based exclusively upon notification the Trustee receives from the Servicer, and except as otherwise
specifically set forth in any of the Transaction Documents, nothing in this Article IX shall obligate the Trustee to review
or examine any underlying instrument or contract evidencing, governing or guaranteeing or securing any Loan in order to verify,
confirm, audit or otherwise determine any characteristic thereof.

 

(b)              
In performing its duties hereunder to deliver the Monthly Reports, the Trustee shall in no event have any liability for
the actions or omissions of the Servicer or any other Person, and shall have no liability for any inaccuracy or error in any Monthly
Report it distributes pursuant to Sections 9.01 and 9.02, except to the extent that such inaccuracies or errors are
caused by the Trustee’s own fraud, bad faith, willful misfeasance, gross negligence or reckless disregard of its duties hereunder.
The Trustee shall not be liable for failing to perform or delay in performance of its specified duties hereunder that results from
or is caused by a failure or delay on the part of the Servicer or another Person in furnishing necessary, timely and accurate information
to the Trustee or the Servicer or a review by the Independent Accountants of a Monthly Report.

 

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Section 9.04              
Other Data; Obligor Financial Information.

 

(a)               Not
later than 4:00 p.m. (New York City time) on the Reference Date, the Servicer shall provide to the Trustee (in a format
agreed to by the Trustee and the Servicer) and the Backup Servicer such information (the “Tape”) the
Servicer relied upon to prepare the Monthly Report for such month. Each Tape shall include, but not be limited to, the
information set forth in Exhibit G hereto. The Backup Servicer shall use such tape or diskette (or other electronic
transmission acceptable to the Trustee and the Backup Servicer) to (i) confirm that such tape, diskette or other electronic
transmission is in readable form, and (ii) calculate and confirm (A) the aggregate amount distributable as principal on the
related Payment Date to the Notes, (B) the aggregate amount distributable as interest on the related Payment Date to the
Notes, (C) the outstanding principal amount of the Notes after giving effect to all distributions made pursuant to clause
(A), above, and (D) the aggregate amount of principal and interest to be carried over on such Payment Date after giving
effect to all distributions made pursuant to clauses (A) and (B), above, respectively. The Backup Servicer shall certify to
the Trustee that it has verified the Monthly Report in accordance with this Section 9.04(a) and shall notify the
Servicer and the Trustee of any discrepancies, in each case, on or before the fifth Business Day following the related
Payment Date. In the event that the Backup Servicer reports any discrepancies, the Servicer and the Backup Servicer shall
attempt to reconcile such discrepancies prior to the next succeeding Payment Date, but in the absence of reconciliation, the
Monthly Report shall control for the purpose of calculations and distributions with respect to the next succeeding Payment
Date. In the event that the Backup Servicer and the Servicer are unable to reconcile discrepancies with respect to a Monthly
Report by the next succeeding Payment Date, the Servicer shall cause the Independent Accountants, at the Servicer’s
expense, to audit the Monthly Report and, prior to the last day of the month after the month in which such Monthly Report was
delivered, reconcile the discrepancies. The effect, if any, of such reconciliation shall be reflected in the Monthly Report
for such next succeeding Payment Date following the last date of the Collection Period. In addition, upon the occurrence of a
Servicer Default the Servicer shall deliver to the Backup Servicer or any successor Servicer its files within 15 days after
demand therefor and a computer tape containing as of the close of business on the date of demand all of the data maintained
by the Servicer in computer format in connection with servicing the Loans. Other than the duties specifically set forth in
this Agreement, the Backup Servicer shall have no obligations hereunder, including, without limitation, to supervise, verify,
monitor or administer the performance of the Servicer. The Backup Servicer shall have no liability for any actions taken or
omitted by the Servicer.

 

(b)              
In addition, the initial Servicer shall, upon the request of the Trustee or any Rating Agency, furnish the Trustee or Rating
Agency, as the case may be, such underlying data in the possession of the initial Servicer used to generate a Monthly Report as
may be reasonably requested. The initial Servicer will also forward to the Trustee, the Backup Servicer and the Rating Agency (i)
within 75 days after each calendar quarter (except the fourth calendar quarter), commencing with the quarter ending September 30,
2018, the unaudited quarterly financial statements of the initial Servicer, the Issuer, the Fund and the BDC and (ii) within 120
days after each fiscal year of the initial Servicer, commencing with the fiscal year ending December 31, 2018, the audited annual
financial statements of the initial Servicer, the Issuer and the Fund, together with the related report of the independent accountants
to the initial Servicer, the Issuer and the Fund. To the extent the initial Servicer is required or asked to furnish any of the
data described in this Section 9.04(b), the initial Servicer may furnish such data through an online investor information
website.

 

(c)              
The Servicer shall provide promptly to the Backup Servicer any data relating to the servicing of the Loans that the Backup
Servicer reasonably requests.

 

(d)              
[Reserved].

 

(e)              
The Servicer will forward to the Rating Agency promptly upon request any additional financial information in the Servicer’s
possession or reasonably obtainable by the Servicer as the Rating Agency shall reasonably request with respect to an Obligor as
to which any Scheduled Payment is past due for at least ten days.

 

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Section 9.05               Annual
Report of Accountants.

 

(a)              
The initial Servicer shall cause a firm of nationally recognized independent certified public accountants (the “Independent
Accountants”), who may also render other services to the initial Servicer or its Affiliates, to deliver to the Trustee
and the Rating Agency, on or before January 31st of each year, beginning on January 31, 2019, a report indicating that the Independent
Accountants have performed certain procedures as agreed by the initial Servicer. As a part of such review, the Independent Accountants
will obtain the Monthly Report with respect to two Collection Periods during the 12 months ended the immediately preceding December
31 and, for each such Monthly Report, the Independent Accountants will reconcile certain amounts in the Monthly Report to the initial
Servicer’s computer, accounting and other reports. In the event the Independent Accountants require the Trustee to agree
to the procedures performed by the Independent Accountants, the initial Servicer shall direct the Trustee in writing to so agree;
it being understood and agreed that the Trustee will deliver such letter of agreement in conclusive reliance upon the direction
of the initial Servicer, and the Trustee will not make any independent inquiry or investigation as to, and shall have no obligation
or liability in respect of, the sufficiency, validity or correctness of such procedures. The Trustee shall not have any responsibility
to any party to make any inquiry or investigation as to, and shall have no obligation in respect of, the terms of any engagement
of independent public accountants by the Servicer, and the Trustee shall be authorized, upon receipt of written direction from
the Issuer or initial Servicer directing the Trustee in writing to execute any acknowledgment or other agreement with the independent
public accountants required for the Trustee to receive any of the reports or instructions provided for herein, which acknowledgment
or agreement may include, among other things, (i) acknowledgement that the Servicer has agreed that the procedures to be performed
by the independent public accountants are sufficient for the Issuer’s purposes, (ii) acknowledgment that the Trustee has
agreed that the procedures to be performed by the independent public accountants are sufficient for the Trustee’s purposes
and that the Trustee’s purposes are limited solely to receipt of the report, (iii) releases by the Trustee (on behalf of
itself and the Noteholders) of claims against the independent public accountants and acknowledgement of other limitations of liability
in favor of the independent public accountants, and (iv) restrictions or prohibitions on the disclosure of information or documents
provided to it by such firm of independent public accountants to other parties (including to the Noteholders).

 

Section 9.06             
Statements of Compliance from Servicer.
The Servicer will deliver to the Trustee and the Backup Servicer within 90 days of the end of each fiscal year commencing with
the year ending December 31, 2018, an Officer’s Certificate stating that (a) the Servicer has fully complied in all material
respects with certain provisions of the Agreement relating to servicing of the Loans and payments on the Notes, (b) a review of
the activities of the Servicer during the prior calendar year and of its performance under this Agreement was made under the supervision
of the officer signing such certificate and (c) to the best of such officer’s knowledge, based on such review, the Servicer
has fully performed or caused to be performed in all material respects all its obligations under this Agreement for such year,
or, if there has been a Servicer Default or default in any of its obligations which, with notice or passage of time, could become
a Servicer Default, specifying each such default known to such officer and the nature and status thereof including the steps being
taken by the Servicer to remedy such event. 

 

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Section 9.07             
Notices of Event of Default, Servicer Default or Rapid Amortization Event.

 

Promptly upon a Responsible
Officer of the Servicer becoming aware thereof, the Servicer shall furnish to the Trustee, the Backup Servicer and the Rating Agency
notice of the occurrence of any Event of Default or Servicer Default or of any situation which the Servicer reasonably expects
to develop into an Event of Default or Servicer Default. Promptly upon a Responsible Officer of the Servicer becoming aware thereof,
the Servicer shall furnish to the Trustee, the Backup Servicer and the Rating Agency notice of the occurrence of any Rapid Amortization
Event.

 

Section 9.08             
Trustee’s Right to Examine Servicer Records, Audit Operations and Deliver Information to Noteholders.

 

The Trustee shall have
the right upon reasonable prior notice, during normal business hours, in a manner that does not unreasonably interfere with the
Servicer’s normal operations or customer or employee relations, no more often than once a year unless an Event of Default
or Servicer Default shall have occurred and be continuing in which case as often as reasonably required, to examine and audit any
and all of the books, records or other information of the Servicer, whether held by the Servicer or by another on behalf of the
Servicer, which may be relevant to the performance or observance by the Servicer of the terms, covenants or conditions of this
Agreement. No amounts payable in respect of the foregoing shall be paid from the Loan Assets.

 

The Trustee shall have
the right, in accordance with the Indenture, to deliver information provided by the Servicer to any Noteholder requesting the same;
provided that the Servicer may request that any such Noteholder not a party hereto enter into a confidentiality agreement
reasonably acceptable to the Servicer prior to permitting such Noteholder to view such information.

 

ARTICLE
X

TERMINATION

 

Section 10.01           
[Reserved].

 

Section 10.02           
Termination.

 

(a)              
This Agreement shall terminate upon notice to the Trustee of the earlier of the following events: (i) the final payment
on or the disposition or other liquidation by the Issuer of the last Loan (including, without limitation, in connection with a
Redemption by the Issuer of all outstanding Notes pursuant to Section 10.01 of the Indenture) or the disposition of all
other Collateral, including property acquired upon foreclosure or deed in lieu of foreclosure of any Loan and the remittance of
all funds due thereunder with respect thereto, (ii) mutual written consent of the Servicer, the Trustee, the Originator and all
Outstanding Noteholders or (iii) the payment in full of all amounts owing in respect of the Notes.

 

(b)               Notice
of any termination, specifying the Payment Date upon which the Issuer will terminate and that the Noteholders shall surrender
their Notes to the Trustee for payment of the final distribution and cancellation shall be given promptly by the Servicer to
the Trustee, the Custodian and the Backup Servicer and by the Trustee to all Noteholders and the Rating Agency during the
month of such final distribution before the Reference Date in such month, specifying (i) the Payment Date upon which final
payment of the Notes (or Redemption Price) will be made upon presentation and surrender of Notes at the office of the Trustee
therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such
Payment Date is not applicable, payments being made only upon presentation and surrender of the Notes at the office of the
Trustee therein specified.

 

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ARTICLE
XI

REMEDIES UPON MISREPRESENTATION;

REPURCHASE OPTION

 

Section 11.01   
Repurchases of, or Substitution for, Loans for Breach of Representations and Warranties.

 

Upon a discovery by
the Originator, a Responsible Officer of the Servicer or any subservicer, a Responsible Officer of the Backup Servicer or a Responsible
Officer of the Trustee of (i) a breach of a representation or warranty as set forth in Section 3.01, Section 3.02,
or Section 3.04 or as made or deemed made in any notice relating to Subsequent Loans and Substitute Loans, as applicable,
that materially and adversely affects the interests of the Noteholders (each such Loan, an “Ineligible Loan”),
the party discovering such breach or failure shall give prompt written notice to the other parties to this Agreement; provided
that neither the Trustee nor the Backup Server not have a duty or obligation to inquire or to investigate the breach of any of
such representations or warranties. Within 60 days of the earlier of (x) its discovery or (y) its receipt of notice of any breach
of a representation or warranty, the Originator shall, (a) promptly cure such breach in all material respects, (b) repurchase each
such Ineligible Loan by depositing in the Lockbox Account, for further credit to the Collection Account, within such 60 day period,
an amount equal to the Transfer Deposit Amount for such Ineligible Loan, or (c) remove such Loan from the Collateral, deposit the
Transfer Deposit Amount with respect to such Loan into the Lockbox Account, for further credit to the Collection Account, and,
not later than the date a repurchase of such affected Loan would be required hereunder, effect a substitution for such affected
Loan with a Substitute Loan in accordance with the substitution requirements set forth in Sections 2.04 and 2.07.

 

Section 11.02   
Reassignment of Repurchased or Substituted Loans.

 

Upon receipt by the
Trustee for deposit in the Collection Account of the amounts described in Section 11.01 (or upon the Substitute Loan Cutoff
Date related to a Substitute Loan described in Section 11.01), and upon receipt of an Officer’s Certificate of the
Servicer in the form attached hereto as Exhibit E hereto, the Trustee and the Issuer shall release and assign, as the case
may be, to the Originator all of the Trustee’s and the Issuer’s right, title and interest in the Loans being repurchased
or substituted for the related Loan Assets without recourse, representation or warranty. Such reassigned Loan shall no longer thereafter
be included in any calculations of Outstanding Loan Balances required to be made hereunder or otherwise be deemed a part of the
Collateral.

 

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ARTICLE
XII

 

INDEMNITIES

 

Section 12.01   
Indemnification by Servicer.

 

The Servicer agrees
to indemnify, defend and hold harmless the Trustee (as such and in its individual capacity), the Lockbox Bank, the Backup Servicer,
Securities Intermediary, the Custodian, any Successor Servicer (as such and in its individual capacity) and each Noteholder, and
each officer, director, employee, representative and agent of such Persons, from and against any and all claims, losses, penalties,
fines, forfeitures, judgments (provided that any indemnification for damages is limited to actual damages, not consequential, special
or punitive damages), reasonable legal fees and related costs and any other reasonable costs, fees and expenses (including the
fees and expenses of enforcing the Servicer’s indemnification and contractual obligation hereunder) that such Person actually
sustains as a result of the Servicer’s fraud or the failure of the Servicer to perform its duties and service the Loans in
compliance in all material respects with the terms of this Agreement, except to the extent arising from gross negligence, willful
misconduct or fraud by the Person claiming indemnification. Any Person seeking indemnification hereunder shall promptly notify
the Servicer if such Person receives a complaint, claim, compulsory process or other notice of any loss, claim, damage or liability
giving rise to a claim of indemnification hereunder but failure to provide such notice shall not relieve the Servicer of its indemnification
obligations hereunder unless the Servicer is deprived of material substantive or procedural rights or defenses as a result thereof.
The Servicer shall assume (with the consent of the indemnified party, such consent not to be unreasonably withheld) the defense
and any settlement of any such claim and pay all expenses in connection therewith, including reasonable counsel fees, and promptly
pay, discharge and satisfy any judgment or decree which may be entered against the indemnified party in respect of such claim.
If the consent of the indemnified party required in the immediately preceding sentence is unreasonably withheld, the Servicer shall
be relieved of its indemnification obligations hereunder with respect to such Person. The parties agree that the provisions of
this Section 12.01 shall not be interpreted to provide recourse to the Servicer against loss by reason of the bankruptcy, insolvency
or lack of creditworthiness of an Obligor with respect to a Loan. The Servicer shall have no liability for making indemnification
hereunder to the extent any such indemnification constitutes recourse for uncollectible or uncollected Loans.

 

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Section 12.02            
Indemnification
by Originator.

 

The Originator
agrees to indemnify, defend and hold harmless the Trustee (as such and in its individual capacity), the Lockbox Bank, the
Backup Servicer, Securities Intermediary, the Custodian, any Successor Servicer (as such and in its individual capacity) and
each Noteholder from and against any and all claims, losses, penalties, fines, forfeitures, judgments (provided that any
indemnification for damages is limited to actual damages, not consequential, special or punitive damages), reasonable legal
fees and related costs and any other reasonable costs, fees and expenses (including the fees and expenses of enforcing the
Originator’s indemnification and contractual obligations hereunder) that such Person actually sustains as a result of
the Originator’s fraud or material breach of a representation or warranty made in this Agreement which would reasonably
be expected to have a material adverse effect on the transactions contemplated by the Transaction Documents, including but
not limited to, the eligibility of any Loan, except to the extent arising from gross negligence, willful misconduct or fraud
by the Person claiming indemnification. Any Person seeking indemnification hereunder shall promptly notify the Originator if
such Person receives a complaint, claim, compulsory process or other notice of any loss, claim, damage or liability giving
rise to a claim of indemnification hereunder but failure to provide such notice shall not relieve the Originator of its
indemnification obligations hereunder unless the Originator is deprived of material substantive or procedural rights or
defenses as a result thereof. The Originator shall assume (with the consent of the indemnified party, such consent not to be
unreasonably withheld) the defense and any settlement of any such claim and pay all expenses in connection therewith,
including reasonable counsel fees, and promptly pay, discharge and satisfy any judgment or decree which may be entered
against the indemnified party in respect of such claim. If the consent of the indemnified party required in the immediately
preceding sentence is unreasonably withheld, the Originator shall be relieved of its indemnification obligations hereunder
with respect to such Person. The parties agree that the provisions of this Section 12.02 shall not be interpreted to provide
recourse to the Originator against loss by reason of the bankruptcy, insolvency or lack of creditworthiness of an Obligor
with respect to a Loan. The Originator shall have no liability for making indemnification hereunder to the extent any such
indemnification constitutes recourse for uncollectible or uncollected Loans.

 

Section 12.03             Survival.

 

The indemnities in
Section 12.01 and Section 12.02 shall survive the termination of this Agreement and the resignation or removal of
any party hereto.

 

ARTICLE
XIII

MISCELLANEOUS

 

Section 13.01           
Amendment.

 

(a)               This
Agreement may be amended from time to time by the Issuer, the Originator, the Servicer, the Backup Servicer, the Custodian,
the Lockbox Bank, the Securities Intermediary and the Trustee by written agreement, but without the consent of any
Noteholder, to (i) cure any ambiguity or to correct or supplement any provisions herein that may be inconsistent with any
other provisions in this Agreement, (ii) comply with any changes in the Code, USA PATRIOT Act, or U.S. securities laws
(including the regulations implementing such laws), (iii) evidence the succession of another Person to the Issuer, a
Successor Servicer or a successor Trustee, and the assumption by any such successor of the applicable covenants therein, (iv)
add to the covenants of any party hereto for the benefit of the Noteholders, (v) amend any provision to this Agreement to
reflect any written change to the guidelines, methodology or standards established by any Rating Agency that are applicable
to this Agreement, (vi) modify Exhibit F hereto, or (vii) add any new provisions with respect to matters or questions
arising under this Agreement which shall not be inconsistent with the provisions of this Agreement; provided that no
such amendment shall materially and adversely affect the interests of any Noteholder. Notice of any proposed amendment must
be sent to all Noteholders at least ten Business Days prior to the execution of such amendment. Any amendment shall not be
deemed to materially and adversely affect the interests of any Noteholder if the Person requesting such amendment obtains an
Opinion of Counsel addressed to the Trustee to that effect.

 

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(b)              
Except as provided in Section 13.01(a), this Agreement may be amended from time to time by the Issuer, the Originator,
the Servicer, the Backup Servicer, the Custodian, the Securities Intermediary and the Trustee, with the consent of the Majority
Noteholders and satisfaction of the Rating Agency Condition, for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders; provided
that (i) no such amendment shall, without the consent of each Noteholder that may be adversely affected, reduce the percentage
of the principal balance of the Notes that is required to consent to any amendment to this Agreement and (ii) no such amendment
shall increase or reduce in any manner the amount of, or accelerate or delay the timing of, or change the allocation or priority
of, collections of payments on or in respect of the Loans or distributions that are required to be made for the benefit of the
Noteholders or change the interest rate applicable to the Notes, without the consent of all adversely affected Noteholders.

 

(c)              
Promptly after the execution of any such amendment or consent, written notification of the substance of such amendment or
consent shall be furnished by the Trustee to the Noteholders and by the Issuer to the Rating Agency. It shall not be necessary
for the consent of any Noteholders required pursuant to Section 13.01(b) to approve the particular form of any proposed
amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such
consents and of evidencing the authorization by the Noteholders of the execution thereof shall be subject to such reasonable requirements
as the Trustee may prescribe for the Noteholders.

 

(d)              
Notwithstanding, the foregoing clauses (a) and (b) of this Section 13.01, the Originator’s consent
or approval shall not be required for any amendments to Sections 2.06, 2.07 or 2.10.

 

Section 13.02           
Acts of God. In no event shall any party hereto be responsible or liable for any failure or delay in the performance
of its obligations hereunder arising out of or caused by, directly or indirectly, acts of war or terrorism, civil or military disturbances,
nuclear or natural catastrophes, acts of God, unavailability of the Federal Reserve Bank wire or telex facility or interruptions,
loss or malfunctions of computer services, communications or utilities; it being understood that each party hereto shall use reasonable
efforts to resume performance of its obligations as soon as practicable under the circumstances.

 

Section 13.03           
Governing Law.

 

(a)              
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE
TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS,
RIGHTS, AND REMEDIES OF THE PARTIES UNDER THE AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

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(b)             
 EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY
HERETO (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 13.03(b).

 

Section 13.04           
Notices.

 

All notices, demands,
certificates, requests and communications hereunder (“notices”) shall be in writing and shall be effective (a)
upon receipt when sent through the U.S. mails, registered or certified mail, return receipt requested, postage prepaid, with such
receipt to be effective the date of delivery indicated on the return receipt, or (b) one Business Day after delivery to an overnight
courier, or (c) on the date personally delivered to a Responsible Officer of the party to which sent, or (d) on the date of confirmation
or receipt by the addressee thereof if transmitted by legible telecopier or electronic mail transmission, in all cases addressed
to the recipient as follows:

 

(i)               if to the
Seller or the Originator:

 

Horizon
Secured Loan Fund I LLC

312 Farmington Avenue

Farmington, CT 06032

Telephone: 860-674-9977

Facsimile No.: 860-674-8655

Email:
dtrolio@horizontechfinance.com

 

(ii)              if
to the Issuer:

 

Horizon
Funding I, LLC

312 Farmington Avenue

Farmington, CT 06032

Telephone: 860-674-9977

Facsimile No.: 860-674-8655

Email:
dtrolio@horizontechfinance.com

 

(iii)             if
to the Servicer:

 

Horizon
Technology Finance Corporation

312 Farmington Avenue

Farmington, CT 06032

Telephone: 860-674-9977

Facsimile No.: 860-674-8655

Email:
dtrolio@horizontechfinance.com

 

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(iv)             if
to the Trustee, the Lockbox Bank or the Securities Intermediary:

 

U.S.
Bank National Association

U.S. Bank National Association

190 LaSalle St., 7th
Floor

Chicago, IL 60603

Attention: Global Corporate
Trust – Horizon Funding I, LLC

Facsimile No.: (312)
332-7996

Email:
melissa.rosal@usbank.com

 

(v)              if
to the Backup Servicer:

 

U.S.
Bank National Association

60 Livingston Avenue

EP-MN-WS3D

St. Paul, MN 55107

Attention: Global Corporate
Trust – Horizon Funding I, LLC

Facsimile No.: (615)
446-7362

Email:
deborah.franco@usbank.com

 

(vi)             if
to the Custodian

 

U.S.
Bank National Association

60 Livingston Avenue

EP-MN-WS3D

St. Paul, MN 55107

Attention: Global Corporate
Trust – Horizon Funding I, LLC

Facsimile No.: (615)
446-7362

Email:
deborah.franco@usbank.com

 

(vii)            if
to the Rating Agency:

 

Morningstar
Credit Ratings, LLC

4 World Trade Center, 48th Floor

150 Greenwich Street

New York, New York 10007

Attention: ABS Monitoring

Email:
absmonitoring@morningstar.com

 

Each
party hereto may, by notice given in accordance herewith to each of the other parties hereto, designate any further or different
address to which subsequent notices shall be sent.

 

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Section 13.05            
Severability of Provisions.

 

If one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever prohibited or held invalid or unenforceable,
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,
the Notes or the rights of the Noteholders, and any such prohibition, invalidity or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such covenants, agreements, provisions or terms in any other jurisdiction.

 

Section 13.06            
Third Party Beneficiaries.

 

The parties hereto
hereby manifest their intent that no third party shall be deemed a third party beneficiary of this Agreement, and specifically
that the Obligors are not third party beneficiaries of this Agreement.

 

Section 13.07            
Counterparts.

 

This Agreement may
be executed by facsimile signature and in several counterparts, each of which shall be an original and all of which shall together
constitute but one and the same instrument.

 

Section 13.08            
Headings.

 

The headings of the
various Articles and Sections herein are for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

 

Section 13.09            
No Bankruptcy Petition; Disclaimer.

 

(a)              
Each of the Originator, the Trustee, the Lockbox Bank, the Securities Intermediary, the Backup Servicer, the Servicer, the
Issuer and each Holder (by acceptance of the Notes) covenants and agrees that, prior to the date that is one year and one day (or,
if longer, the then applicable preference period and one day) after the payment in full of all amounts owing in respect of all
outstanding Notes, it will not institute against the Issuer, or join any other Person in instituting against the Issuer, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings or other similar proceedings under the laws of the United States
or any state of the United States; provided that nothing herein shall prohibit the Trustee from filing proofs of claim or
otherwise participating in any such proceedings instituted by any other Person.

 

(b)              
The Issuer acknowledges and agrees that Notes do not represent an interest in any assets (other than the Loan Assets) of
the Originator (including by virtue of any deficiency claim in respect of obligations not paid or otherwise satisfied from the
Loan Assets, other Collateral and proceeds thereof).

 

(c)              
The provisions of this Section 13.09 shall be for the third party benefit of those entitled to rely thereon, including
the Noteholders, and shall survive the termination of this Agreement.

 

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Section 13.10   
Jurisdiction.

 

Any legal action or
proceeding with respect to this Agreement may be brought in the courts of the United States for the Southern District of New York,
and by execution and delivery of this Agreement, each party hereto consents, for itself and in respect of its property, to the
nonexclusive jurisdiction of those courts. Each such party irrevocably waives any objection, including any objection to the laying
of venue or based on the grounds of forum non conveniens, which it may now or hereafter have to the bringing of any action or proceeding
in such jurisdiction in respect of this Agreement or any document related hereto.

 

Section 13.11   
No Partnership.

 

Nothing herein contained
shall be deemed or construed to create a co-partnership or joint venture between the parties hereto, and the services of the Servicer
shall be rendered as an independent contractor and not as agent or as a fiduciary for any party hereto or for the Noteholders.

 

Section 13.12   
Successors and Assigns.

 

This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

 

Section 13.13   
Acts of Holders.

 

Except as otherwise
specifically provided herein, whenever Holder action, consent or approval is required under this Agreement or any other Transaction
Document, such action, consent or approval shall be deemed to have been taken or given on behalf of, and shall be binding upon,
all Holders if the Majority Noteholders agree to take such action or give such consent or approval. In all cases except where otherwise
required by law or regulation, any act by a Holder of a Note may be taken by the Owner of such Note.

 

Section 13.14   
Duration of Agreement.

 

This Agreement shall
continue in existence and effect until terminated as herein provided.

 

Section 13.15   
Limited Recourse.

 

Notwithstanding
any other provisions of the Notes, this Agreement or any other Transaction Document, the obligations of the Issuer under the
Notes, this Agreement and any other Transaction Document are limited recourse obligations of the Issuer payable solely from
the Collateral in accordance with the Priority of Payments and, following realization of the Collateral and distribution in
accordance with the Priority of Payments, any claims of the Noteholders and the other Secured Parties, and any other parties
to any Transaction Document shall be extinguished. The obligations of the Originator, the Issuer and the Servicer under this
Agreement and the other Transaction Documents are solely the obligations of the Originator, the Issuer and the Servicer,
respectively. No recourse shall be had for the payment of any amount owing by the Originator, the Issuer or the Servicer or
otherwise under this Agreement or under the other Transaction Documents or for the payment by the Originator, the Issuer or
the Servicer of any fee in respect hereof or thereof or any other obligation or claim of or against the Originator, the
Issuer or the Servicer arising out of or based upon this Agreement or on any other Transaction Document, against any
Affiliate, shareholder, partner, manager, member, director, officer, employee, representative or agent of the Originator, the
Issuer or the Servicer or of any Affiliate of such Person. The provisions of this Section 13.15 shall survive
termination of this Agreement.

 

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Section 13.16   
Confidentiality.

 

Each of the Issuer,
the Servicer and the Trustee shall maintain and shall cause each of its employees, officers, agents and Affiliates to maintain
the confidentiality of material non-public information concerning the Fund and its Affiliates or about the Obligors obtained by
it or them in connection with the structuring, negotiating, execution and performance of the transactions contemplated by the Transaction
Documents, except that each such party and its employees, officers, agents and Affiliates may disclose such information to other
parties to the Transaction Documents and to its external accountants, attorneys, any potential subservicers and the agents of such
Persons provided such Persons expressly agree to maintain the confidentiality of such information, and as required by an applicable
law or order of any judicial or administrative proceeding. This Section 13.16 shall constitute a confidentiality agreement
for purposes of Regulation FD under the Exchange Act. Notwithstanding any other provision of this Agreement, the Servicer shall
not be required to disclose any confidential information it is restricted from disclosing by law or contract; provided that
the Servicer will use its commercially reasonable efforts to enter into, or cause the Issuer to enter into, a confidentiality agreement
permitting such disclosure satisfactory to the Servicer with any Person to whom such information is required to be delivered. Notwithstanding
the foregoing, the parties hereto may disclose material non-public information to the extent requested by any regulatory authority
purporting to have jurisdiction over it (including any self-regulatory authority), (c) to the extent required by applicable laws
or regulations or by any subpoena or similar legal process, (d) in connection with the exercise of any remedies hereunder or any
action or proceeding relating to this Agreement or the enforcement of rights hereunder or thereunder, (e) to the extent such information
becomes publicly available other than as a result of a breach of this Section 13.16.

 

Section 13.17   
Non-Confidentiality of Tax Treatment.

 

All parties hereto
agree that each of them and each of their managers, officers, employees, representatives, and other agents may disclose to any
and all persons, without limitation of any kind, the tax treatment and tax structure of the transaction and all materials of any
kind (including opinions or other tax analyses) that are provided to any of them relating to such tax treatment and tax structure.
 “Tax treatment” and “tax structure” shall have the same meaning as such terms have for purposes of Treasury
Regulation Section 1.6011-4.

 

[Remainder of Page Intentionally Left
Blank]

 

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

 

	 	HORIZON FUNDING I, LLC, as
    the Issuer
	 	 
	 	By: 	 /s/ Daniel R. Trolio
	 	Name: 
	 	Title: 
	 	 
	 	HORIZON SECURED LOAN FUND I LLC, as the Originator and as the Seller
	 	 
	 	By:	 /s/ Daniel R. Trolio
	 	Name: 
	 	Title: 
	 	 
	 	HORIZON TECHNOLOGY FINANCE CORPORATION, as the Servicer 
	 	 
	 	By:  	 /s/ Robert D. Pomeroy, Jr.
	 	Name: Robert D. Pomeroy, Jr.
	 	Title: Chief Executive Officer

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

	 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but as the Trustee
	 	 
	 	By:  	 /s/ Julian Linian
	 	Name: Julian Linian
	 	Title: Vice President
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but as Securities Intermediary
	 	 
	 	By:	 /s/ Julian Linian
	 	Name: Julian Linian
	 	Title: Vice President
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but as Custodian 
	 	 
	 	By:	 /s/ Julian Linian
	 	Name: Julian Linian
	 	
        Title: Vice President

	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but as Backup Servicer
	 	 
	 	By:	 /s/ Samantha Howe
	 	Name: Samantha Howe
	 	Title: Vice President
	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, not in its individual
capacity but as Lockbox Bank
	 	 
	 	By:	/s/ Deborah J. Franco
	 	Name: Deborah J. Franco
	 	Title: Vice President

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

Acknowledged and agreed:

 

	 	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION, as Initial Purchaser
	 	 
	 	By:  NYL Investors LLC, its Investment Manager
	 	 
	 	By:  	/s/
    Scott R. Seewald
	 	Name: Scott R. Seewald 
	 	Title:  Managing Director
	 	 
	 	NEW YORK LIFE INSURANCE COMPANY, as Initial Purchaser
	 	 
	 	By:  	/s/ Scott R. Seewald
	 	Name: Scott R. Seewald  
	 	Title:  Vice President
	 	 
	 	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30C), as Initial Purchaser
	 	 
	 	By:  NYL Investors LLC, its Investment Manager
	 	 
	 	By:  	/s/ Scott R. Seewald
	 	Name: Scott R. Seewald 
	 	Title: Managing Director 
	 	 

 

[Horizon
 — Sale and Servicing Agreement]

 

    

     

    

 

	 	NEW YORK LIFE INSURANCE AND ANNUITY CORPORATION INSTITUTIONALLY OWNED LIFE INSURANCE SEPARATE ACCOUNT (BOLI 30E), as Initial Purchaser
	 	 
	 	By: NYL Investors LLC, its Investment Manager
	 	 
	 	By:  	/s/
    Scott R. Seewald
	 	Name: Scott R. Seewald  
	 	Title: Managing Director 
	 	 
	 	THE BANK OF NEW YORK MELLON, A BANKING CORPORATION ORGANIZED UNDER THE LAWS OF NEW YORK, NOT IN ITS INDIVIDUAL CAPACITY BUT SOLELY AS TRUSTEE UNDER THAT CERTAIN TRUST AGREEMENT DATED AS OF JULY 1ST, 2015 BETWEEN NEW YORK LIFE INSURANCE COMPANY, AS GRANTOR, JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.), AS BENEFICIARY, JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK, AS BENEFICIARY, AND THE BANK OF NEW YORK MELLON, AS TRUSTEE, as Initial Purchaser
	 	 
	 	By: New York Life Insurance Company, its attorney-in-fact
	 	 
	 	By: 	/s/ Scott R. Seewald
	 	Name: Scott R. Seewald  
	 	Title: Vice President 

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

EXHIBITS AND SCHEDULES
TO

 SALE AND SERVICING AGREEMENT

 

	EXHIBIT
    A	Form
    of Assignment
	 	 
	EXHIBIT
    B	Form
    of Borrowing Base Certificate
	 	 
	EXHIBIT
    C	Form
    of Closing Certificate of Originator
	 	 
	EXHIBIT
    D	Form
    of Liquidation Report
	 	 
	EXHIBIT
    E	Form
    of Servicer’s Officer Certificate
	 	 
	EXHIBIT
    F	List
    of Loans
	 	 
	EXHIBIT
    G	Form
    of Monthly Report
	 	 
	EXHIBIT
    H-1	Form
    of Initial Certification
	 	 
	EXHIBIT
    H-2	Form
    of Final Certification
	 	 
	EXHIBIT
    I	Form
    of Request for Release of Documents
	 	 
	EXHIBIT
    J	Initial
    Loans Criteria
	 	 
	EXHIBIT
    K	Portfolio
    Profile Milestone Criteria

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

Exhibit
A 

to Sale and

Servicing Agreement

FORM OF ASSIGNMENT

 

[__]

 

Pursuant to and in
accordance with the Sale and Servicing Agreement (such agreement as amended, modified, waived, supplemented or restated from time
to time, the “Agreement”), dated as of June 1, 2018, made by and among Horizon Funding I, LLC, as the issuer
(the “Issuer”), Horizon Secured Loan Fund I LLC, as the originator (the “Originator”) and
as the seller, Horizon Technology Finance Corporation, as the servicer (“Servicer”) and U.S. Bank National Association,
as the trustee, backup servicer, custodian, lockbox bank and securities intermediary, the undersigned does hereby sell, transfer,
assign, set over and otherwise convey to the [ ]1 all right, title and interest of the [ ]2
in and to the following: (i) the Loans [listed in the List of Loans (as may be updated from time to time to reflect Substitute
Loans and Subsequent Loans and Loans removed in accordance with the Agreement)] [on the attached schedule], all payments paid in
respect thereof and all monies due, to become due or paid in respect thereof accruing on and after the [Cutoff Date] [Transfer
Date] and all Insurance Proceeds, Liquidation Proceeds, Released Mortgaged Property Proceeds and other recoveries thereon, in each
case as they arise after the [Cutoff Date] [Transfer Date]; (ii) all security interests and Liens and Related Property subject
thereto from time to time purporting to secure payment by Obligors under such Loans; (iii) all guaranties, indemnities and warranties,
and other agreements or arrangements of whatever character from time to time supporting or securing payment of such Loans; (iv)
all collections and records (including Computer Records) with respect to the foregoing; (v) all documents relating to the applicable
Loan Files; and (vi) all income, payments, proceeds and other benefits of any and all of the foregoing, including but not limited
to, all accounts, cash and currency, chattel paper, electronic chattel paper, tangible chattel paper, copyrights, copyright licenses,
equipment, fixtures, general intangibles, instruments, commercial tort claims, deposit accounts, inventory, investment property,
letter of credit rights, software, supporting obligations, accessions, and other property consisting of, arising out of, or related
to the foregoing.

 

This Assignment shall
be governed by the laws of the State of New York applicable to agreements made and to be performed therein. Capitalized terms used
herein have the meaning given such terms in the Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

 

1 Assignee

2
Assignor

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Assignment to be duly executed as of the date first written above.

 

	 	[
    ], as Assignor
	 	 
	 	By: 	 
	 	 	Name: 	            
	 	 	Title:
    Authorized Representative

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

Exhibit
B 

to Sale and

Servicing Agreement

 

FORM OF BORROWING BASE CERTIFICATE

 

[●], 201_

 

[Horizon — Sale and Servicing Agreement]

 

    	 	 	 

     

    

		HORIZON
                                         FUNDING I, LLC Borrowing Base Certificate Pursuant
                                         to the Sale and Servicing Agreement dated as of June 1, 2018, as amended from time to
                                         time (the “Agreement”) among the undersigned, the Servicer, and the Trustee,
                                         the undersigned certifies that as of the close of business on the date set forth below,
                                         the Borrowing Base is computed as set forth below: Date
                                         of Advance: Date of Determination: COLLATERAL ROLLFORWARD Date
                                         TOTAL Aggregate Outstanding Loan Balance:Excess
                                         Concentration Amounts (-): Aggregate Outstanding Loan Balance of Delinquent Loans (-):
                                         Aggregate Outstanding Loan Balance of Defaulted Loans (-): Aggregate Outstanding Loan
                                         Balance of Ineligible Loans (-): Adjusted Pool Balance: Multiplied by Advance
                                         Rate: Borrowing Base Subtotal: Amounts on deposit in Principal Reinvestment Account
                                         (+): Amounts on deposit in Collection Account related to Principal Collections (+): Amounts
                                         directed to Principal Reinvestment Account (+): Amounts directed from Principal Reinvestment
                                         Account (-): Amounts directed from Collection Account related to Principal Collections
                                         (-): Borrowing Base: Commitment Amount: Lesser of Borrowing Base and Commitment
                                         Amount: Current Aggregate Outstanding Note Balance: Current Advance Availability:
                                         Draw Request Amount: Principal Distribution Amount: Aggregate Outstanding Note
                                         Balance after Activity: Advance Availability after Activity:The undersigned
                                         represents and warrants that this Borrowing Base Certificate and all attached Schedules
                                         are true and correct statements of, and that the information contained herein is true
                                         and correct in all material respects regarding the status of Eligible Loans and the respective
                                         amounts reflected herein are in compliance with the provisions of the Agreement and the
                                         Exhibits and Schedules thereto. The undersigned further represents and warrants that
                                         there is no Event of Default and all representations and warranties contained in the
                                         Agreement and other Documents are true and correct in all material respects and that
                                         all required procedures have been completed in calculating the information set forth
                                         above. If requesting an Advance, the undersigned further represents that the Investment
                                         Period Termination Date has not occurred. Capitalized terms are used herein and not otherwise
                                         defined herein shall have the meanings specified in the Agreement. By:
                                         Horizon Funding I LLC Signature Print Name Title

 

    	 	 	 

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

Exhibit
C 

to Sale and

Servicing Agreement

FORM OF CLOSING CERTIFICATE OF ORIGINATOR

 

June 1, 2018

 

THIS OFFICER’S
CERTIFICATE is executed and delivered as of this 1st day of June, 2018, pursuant to the Sale and Servicing Agreement (such agreement
as amended, modified, waived, supplemented or restated from time to time, the “Agreement”), dated as of June
1, 2018, by and among Horizon Secured Loan Fund I LLC, as the Originator (the “Company”), Horizon Technology
Finance Corporation, as the servicer, U.S. Bank National Association, as the Trustee, as the Securities Intermediary, as the Custodian,
as the Lockbox Bank and as the Backup Servicer, and Horizon Funding I, LLC, as the Issuer. All capitalized terms used and not otherwise
defined herein shall have the meanings ascribed to such terms in the Agreement.

 

I, [__________], do
herby certify that I am the Chief Operating Officer and Executive Vice President of the Company and that, as such, I am authorized
to execute this certificate on behalf of the Company and do further certify that:

 

Attached hereto as
Annex I is a true, correct and complete copy of the Certificate of Formation of the Company, as amended, together with all
amendments thereto, and as in effect on the date hereof, which documents were in full force and effect in such form on the date
hereof, and at all times subsequent thereto, without modification or amendment in any respect.

 

Attached
hereto as Annex II is a Certificate of the Secretary of State of the State of Delaware, dated [Ÿ],
stating that the Company is duly formed under the laws of the State of Delaware.

 

Attached hereto as
Annex III is a true, correct and complete copy of the Limited Liability Company Agreement of the Company, together with
all amendments thereto in effect on the date hereof, which documents are in full force and effect on the date hereof.

 

Attached hereto as
Annex IV is a true, correct and complete copy of the written resolutions duly adopted by [the sole member] of the Company
relating to the authorization, execution, delivery and performance of (among other things) the Agreement and the other Transaction
Documents. Said resolutions have not been amended, modified, annulled or revoked, are in full force and effect on the date hereof
and at all times subsequent thereto, and are the only resolutions relating to these matters which have been adopted by the sole
member.

 

Each person named
on Annex V attached hereto is a duly elected, qualified and incumbent officer of the Company and the signature set forth
opposite his or her name on such Annex V is that person’s genuine signature.

 

I have carefully examined the Transaction Documents.

 

No event with respect
to the Company has occurred and is continuing that would constitute an Event of Default or Servicer Default or an event that, with
notice or the passage of time, would constitute an Event of Default or
Servicer Default as defined in the Transaction Documents.

 

[Horizon — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

All federal, state and local taxes of
the Company due and owing as of the date hereof have been paid or adequate provisions for the payment thereof have been made.

 

All representations
and warranties of the Company contained in the Transaction Documents or in any document, certificate or financial or other statement
delivered in connection therewith are true and correct in all material respects as of the date hereof.

 

There is no action,
investigation or proceeding pending or, to my knowledge, threatened against the Company before any court, administrative agency
or other tribunal (a) asserting the invalidity of any Transaction Document to which the Company is a party; (b) seeking to prevent
the consummation of any of the transactions contemplated by the Transaction Documents; or (c) that is likely to materially and
adversely affect the Company’s performance of its obligations under, or the validity or enforceability of, the Transaction
Documents.

 

No consent, approval,
authorization or order of, and no notice to or filing with, any governmental agency or body or state or federal court is required
to be obtained by the Company for its consummation of the transactions contemplated by the Transaction Documents, except such as
have been obtained or made and such as may be required under the blue sky laws of any jurisdiction in connection with the issuance
and sale of the Notes.

 

The Company’s
(a) transfer and assignment of the Initial Loan Assets to the Issuer; (b) entering into of the Transaction Documents; and (c) consummation
of any of the transactions contemplated in the Transaction Documents, in each case will not violate or conflict with any agreement
or instrument to which the Company is a party or by which it or its property is otherwise bound.

 

In connection with
the transfers of the Initial Loan Assets contemplated in the Transaction Documents, the Company (a) has not made such transfer
with actual intent to hinder, delay or defraud any creditor of the Company; (b) has not received less than a reasonably equivalent
value in exchange for such transfer; (c) is not on the date hereof insolvent (nor will the Company become insolvent as a result
thereof); (d) is not engaged (or about to engage) in a business or transaction for which it has unreasonably small capital; and
(e) does not intend to incur or believe it will incur debts beyond its ability to pay when matured.

 

Each of the agreements
and conditions of the Company to be performed or satisfied on or before the Closing Date under the Transaction Documents has been
performed or satisfied in all material respects.

 

The Company has not
authorized for filing any UCC financing statements listing the Initial Loan Assets as collateral other than financing statements
relating to the transactions contemplated in the Agreement or for which have been released or terminated.

 

Attached hereto as Annex VI is the complete
and accurate List of Loans for the Initial Loans.

 

[Horizon — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

The Servicer has notified
and directed the Obligor with respect to each such Loan to make all payments on the Loans, whether by wire transfer, ACH or otherwise,
directly to the Lockbox Account

 

The Servicer has notified
and directed each of the Company’s co-lenders under Co-Agented Loans and Third-Party Loans that receive payments on behalf
of the Originator, to transfer such payments received from the Obligors with respect to such Loans to the Lockbox Account within
two Business Days of receipt of such payments by such co-lender.

 

The Initial Loans satisfy the Initial Loans Criteria.

 

******

 

[Horizon — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

IN WITNESS WHEREOF, I have affixed
my signature hereto as of the date written above.

 

	 	By:	 
	 	 	Name:
	 	 	Title:

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

ANNEX I 

to Closing Certificate of 

Servicer/Originator

 

CERTIFICATE OF FORMATION

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

ANNEX II 

to Closing Certificate of

Servicer/Originator

 

CERTIFICATES OF GOOD STANDING

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

ANNEX III

to Closing Certificate of

Servicer/Originator

 

LIMITED LIABILITY COMPANY AGREEMENT

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

ANNEX IV 

to Closing Certificate of

Servicer/Originator

 

WRITTEN RESOLUTIONS

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

ANNEX V 

to Closing Certificate of

Servicer/Originator

 

INCUMBENCY OF SIGNING OFFICERS

 

	Name of Officer	 	Title	 	Signature

 

	1.	 	 

 

	2.	 	 

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

ANNEX VI 

to Closing Certificate of

Servicer/Originator

 

List
of Loans

 

See below

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

	Account 

Name	Loan Name	Funding 

Name	Accounting 

System/ 

Collateral 

ID	Outstanding 

Loan 

Balance at 

Cutoff Date	Actual 

Funding 

Date	Loan Type	Collateral 

Agent	Promissory 

Note Status	Mortgage 

Security	UCC Filing 

in 

Originator’s 

Name	Availability 

of Original 

Required 

Documents
	 	 	 	 	 	 	 	 	 	 	 	 

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

Exhibit
D to Sale 

and Servicing

 Agreement

 

FORM OF LIQUIDATION REPORT

 

Obligor Name:

Account number:

Original Outstanding Loan Balance:

 

		1.	Amounts received or receivable__________________ $

Principal
Prepayment                                               
               $

Property Sale Proceeds                                                          $

Insurance
Proceeds                                                                $

Other (Itemize)                                                                         $

 

		2.	Liquidation Expenses ($__________ )

 

		3.	Scheduled Payment Advances, ($_____________)

Servicing Advances and interest

thereon reimbursed

 

4.           
Outstanding Loan Balance of the_________________ ($

                                                                                                  )

Loan on date of liquidation

 

		5.	R e a l i z e d  ( L o s s )  o r  G a i n  $

 

[Horizon —
Sale and Servicing Agreement]

 

     

     

    

 

[Horizon —
Sale and Servicing Agreement]

 

     

     

    

 

Exhibit
E to Sale and

Servicing Agreement

 

HORIZON TECHNOLOGY FINANCE CORPORATION

SERVICER OFFICER’S CERTIFICATE

 

__________       ,
2018

 

Reference is made to
the Sale and Servicing Agreement, dated as of June 1, 2018 (the “Servicing Agreement”), by and among Horizon
Funding I, LLC, as the Issuer, Horizon Secured Loan Fund I LLC, as the Originator, Horizon Technology Finance Corporation, as the
Servicer (in such capacity, the “Servicer”) and U.S. Bank National Association as the Trustee (in such capacity,
the “Trustee”), Custodian, Backup Servicer, Lockbox Bank and Securities Intermediary, relating to the Notes.
Terms defined by the Servicing Agreement, wherever used herein, unless otherwise defined herein, shall have the same meanings as
are prescribed by the Servicing Agreement.

 

OPTION 1:

 

Pursuant to Section
5.02(d)(iv), the undersigned, in its capacity as Servicer, hereby requests the documents described on Schedule A hereto
in connection with its servicing activities.

 

OPTION 2:

 

The undersigned, in
its capacity as Servicer, hereby certifies that the Loan described on Schedule A hereto is required to be repurchased or
substituted pursuant to and in accordance with Section 11.01 of the Servicing Agreement.

 

Executed as of the date set forth above.

 

	 	HORIZON TECHNOLOGY FINANCE
    CORPORATION, as Servicer
	 	 
	 	By:	                          
	 	Name:
	 	Title:

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

Schedule A

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

Exhibit
F 

to Sale and

Servicing Agreement

 

List
of Loans

[To be attached]

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

Exhibit
G 

to Sale and

Servicing Agreement

 

FORM
OF MONTHLY REPORT

 

[To be attached]

 

[Horizon — Sale and Servicing Agreement]

 

     

     

    

 

[Horizon
 — Sale and Servicing Agreement]

 

     

     

    

 

Exhibit
H-1

to
Sale and

Servicing
Agreement

 

FORM
OF INITIAL CERTIFICATION

 

[Ÿ],
2018

 

	Horizon
    Funding I, LLC	Horizon
    Technology Finance Corporation
	312
    Farmington Avenue	312
    Farmington Avenue
	Farmington,
    CT 06032	Farmington,
    CT 06032
	Telephone:
    860-674-9977	Telephone:
    860-674-9977
	Facsimile
    No.: 860-674-8655	Facsimile
    No.: 860-674-8655
	Email:
    dtrolio@horizontechfinance.com	Email:
    dtrolio@horizontechfinance.com
	 	 
	Horizon
    Secured Loan Fund I LLC	U.S.
    Bank National Association, as Trustee
	312
    Farmington Avenue	190
    S. LaSalle St., 7th Floor
	Farmington,
    CT 06032	Chicago,
    IL 60603
	Telephone:
    860-674-9977	Telephone:
    (312) 332-7496
	Facsimile
    No.: 860-674-8655	Facsimile
    No.: (312) 332-7996
	Email:
    dtrolio@horizontechfinance.com	Email:
    Melissa.rosal@usbank.com
	 	ATTN:
    Horizon Funding I, LLC

 

Re:          Sale
and Servicing Agreement dated as of June 1, 2018 – Horizon Funding I, LLC Ladies and Gentlemen:

 

In
accordance with Section 2.11(a) of the above–captioned Sale and Servicing Agreement (such agreement as amended, modified,
waived, supplemented or restated from time to time, the “Agreement”), the undersigned, as the Custodian, hereby
certifies that, except as noted on the attachment hereto, if any (the “Loan Exception Report”), it has received
each of the Required Loan Documents required to be delivered to it pursuant to Section 2.09(b) of the Agreement with respect
to each Loan listed in the List of Loans and the documents contained therein appear to bear original signatures to the extent
required under the definition of Required Loan Documents. Capitalized terms used but not defined herein have the meanings set
forth in the Agreement.

 

The
Custodian has made no independent examination of any such documents beyond the review specifically required in the Agreement.

 

[Horizon
 — Sale and Servicing Agreement] 

 

    	 	 	 

     

    

 

[Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

The
Custodian makes no representations as to: (i) the validity, legality, sufficiency, enforceability or genuineness of any such documents
or any of the Loans identified on the List of Loans, or (ii) the collectibility, insurability, effectiveness or suitability of
any such Loan.

 

	 	U.S. BANK NATIONAL ASSOCIATION, as the Custodian
	 	 	 
	 	By:	                                
	 	Name:	 
	 	Title:	 

 

[Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

[Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

LOAN
EXCEPTION REPORT

 

[________]

 

[Horizon
 — Sale and Servicing Agreement] 

 

    	 	 	 

     

    

 

[Horizon
 — Sale and Servicing Agreement] 

 

    	 	 	 

     

    

 

Exhibit
H-2

to
Sale and

Servicing
Agreement

 

FORM
OF FINAL CERTIFICATION

 

[       ],
2018

 

	Horizon
    Funding I, LLC	Horizon
    Technology Finance Corporation
	312
    Farmington Avenue	312
    Farmington Avenue
	Farmington,
    CT 06032	Farmington,
    CT 06032
	Telephone:
    860-674-9977	Telephone:
    860-674-9977
	Facsimile
    No.: 860-674-8655	Facsimile
    No.: 860-674-8655
	Email:
    dtrolio@horizontechfinance.com	Email:
    dtrolio@horizontechfinance.com
	 	 
	Horizon
    Secured Loan Fund I LLC	U.S.
    Bank National Association, as Trustee
	312
    Farmington Avenue	190
    S. LaSalle St., 7th Floor
	Farmington,
    CT 06032	Chicago,
    IL 60603
	Telephone:
    860-674-9977	Telephone:
    (312) 332-7496
	Facsimile
    No.: 860-674-8655	Facsimile
    No.: (312) 332-7996
	Email:
    dtrolio@horizontechfinance.com	Email:
    Melissa.rosal@usbank.com
	 	ATTN:
    Horizon Funding I, LLC

 

Re:          Sale
and Servicing Agreement dated as of June 1, 2018 – Horizon Funding I, LLC Ladies and Gentlemen:

 

In
accordance with Section 2.11(a) of the above-captioned Sale and Servicing Agreement (such agreement as amended, modified, waived,
supplemented or restated from time to time, the “Agreement”), the undersigned, as the Custodian, hereby certifies
that, except as noted on the attachment hereto, as to each Loan listed on the List of Loans (other than any Loan paid in full
or listed on the attachment hereto), it has reviewed the documents identified on the related List of Loans and required to be
delivered to it pursuant to Section 2.09(b) of the Agreement and has determined that (i) all such documents are in its possession,
(ii) such documents have been reviewed by it and have not been mutilated, damaged, torn or otherwise physically altered and relate
to such Loan and (iii) based on its examination, and only as to the foregoing documents, the account number and maturity date
set forth in the List of Loans respecting such Loan has been provided. Capitalized terms used but not defined herein have the
same meanings set forth in the Agreement.

 

The
Custodian has made no independent examination or inquiry of such documents beyond the review specifically required in the Agreement.

 

[Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

[Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

The
Custodian makes no representations as to: (i) the validity, legality, enforceability or genuineness of any such documents contained
in each or any of the Loans identified on the List of Loans, (ii) the collectibility, insurability, effectiveness or suitability
of any such Loan, or (iii) the compliance by such documents with statutory or regulatory guidelines.

 

	 	U.S. BANK NATIONAL ASSOCIATION, as the Custodian
	 	 	 
	 	By:	                              
	 	Name:	            
	 	Title:	 

 

 [Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

[Horizon
 — Sale and Servicing Agreement]

 

    	 	 	 

     

    

 

 

Exhibit
I

to Sale and

Servicing Agreement

 

REQUEST FOR RELEASE OF DOCUMENTS

 

	To:	 U.S. Bank National Association, as Trustee
	 	190 S. LaSalle St., 7th Floor
	 	Chicago, IL 60603
	 	Telephone: (312) 332-7496
	 	Facsimile: (312) 332-7996
	 	Attention: Global Corporate Trust - Horizon Funding I, LLC
	 	 
	 	U.S. Bank National Association,
	 	as the Custodian
	 	West Side Flats, 60 Livingston Avenue
	 	EP-MN-WS3D
	 	St. Paul, MN 55107
	 	Facsimile: (615) 446-7362
	 	Attention: Global Corporate Trust – Horizon Funding I, LLC
	 	 
	Re:	Sale and Servicing Agreement dated as of June 1, 2018 – Horizon
    Funding I, LLC

 

 In connection with
the administration of the pool of Loans held by you, we request the release, and acknowledge receipt, of the (Trustee’s Document
File/[specify document]) for the Loan described below, for the reason indicated.

 

Obligor’s Name, Address & Zip Code:

 

Loan Number:

 

Reason for Requesting Documents (check one)

 

	              	  1.	Loan paid in full
	 	 	(Servicer hereby certifies that all amounts received
in connection therewith have been credited to the Principal and Interest Account.)

 

	              	  2.	Loan liquidated
	 	 	(Servicer hereby certifies that all proceeds of
foreclosure, insurance or other liquidation have been finally received and credited to the Principal and Interest Account.)

 

	              	  3.	Loan in foreclosure

 

	               	  4. 	Loan sold, repurchased or substituted pursuant to Article II or XI of the Sale and Servicing Agreement(Servicer hereby certifies that the repurchase price to the extent required has been credited to the Principal and Interest Account and/or remitted to the Trustee for deposit into the Note Distribution Account pursuant to the Sale and Servicing Agreement.)

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

[Horizon — Sale and Servicing Agreement]

  

    

     

    

 

	              	  5.	Collateral being released pursuant to Sections 2.11
or 5.08 of the Sale and Servicing Agreement.

 

	              	  6.	Loan Collateral or associated loan document being substituted,
released, revised or subordinated.

 

	              	  7.	Other [Specify.]

 

If box 1, 2 or 4 above is checked, and if
all or part of the Trustee’s document file was previously released to us, please release to us our previous receipt on file
with you, as well as any additional documents in your possession relating to the above specified Loan.

 

If box 3, 5 or 6 above is checked, upon
our return of all of the above documents (or the appropriate substitutes therefor, if applicable) to you, please acknowledge your
receipt by signing in the space indicated below, and returning this form.

	 
	 	HORIZON TECHNOLOGY FINANCE CORPORATION,
    as the
    Servicer
	 	 
	 	By:	 
	 	Name:	 
	 	Title:	             
	 	Date:	 

 

	Documents returned to Trustee:	 
	 	 
	U.S. BANK NATIONAL ASSOCIATION, as
    the Trustee	 
	 	 
	By:	 	 
	Name:	              	 
	Title:	 	 
	Date:	 	 

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

[Horizon — Sale and Servicing Agreement]

  

    

     

    

 

Exhibit
J

to Sale and

Servicing Agreement

 

INITIAL LOAN CRITERIA

 

	Minimum Number of Distinct Obligors	 	 	4	 
	 	 	 	 	 
	Maximum Aggregate Outstanding Loan Balance	 	$	25,000,000	 

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

 

Exhibit
K

to Sale and

Servicing Agreement

 

PORTFOLIO PROFILE MILESTONE CRITERIA

 

Minimum Number of Obligors at 12 Months: 10

 

Minimum Number of Obligors at 24 Months: 20

 

Maximum Outstanding Loan Balance per Distinct Obligor: $15,000,000

 

Maximum Weighted Average Loan-To-Value Ratio (determined in
accordance with the Operating Guidelines) for Loans: 25%

 

Minimum Weighted Average Cash Yield Rate: 9%

 

Minimum Weighted Average Risk Rating: 2.5

 

[Horizon — Sale and Servicing Agreement]

 

    

     

    

 

[Horizon — Sale and Servicing Agreement]

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