Document:

Document

EXHIBIT 10.5
PROPERTY MANAGEMENT AND LEASING AGREEMENT

This property management and leasing agreement (this “Management Agreement”) is made and entered into as of the 11th day of November, 2021, by and among ARHC OPFWNIN02, LLC (the “Owner”) and HEALTHCARE TRUST PROPERTIES, LLC, a Delaware limited liability company (the “Manager”).

WHEREAS, the Owner desires to retain the Manager to manage and coordinate the leasing of the real estate properties owned by the Owner, and the Manager desires to be so retained, all under the terms and conditions set forth in this Management Agreement;

NOW, THEREFORE, in consideration of the foregoing and of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties do hereby agree as follows:

ARTICLE I. DEFINITIONS
Except as otherwise specified or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this Management Agreement:

1.1“Account” has the meaning set forth in Section 2.3(i) hereof.

1.2“Advisor” means Healthcare Trust Advisors, LLC, a Delaware limited liability company, any successor advisor to the Company and the OP, or any Person to which Healthcare Trust Advisors, LLC or any successor advisor subcontracts substantially all of its functions. Notwithstanding the foregoing, a Person hired or retained by Healthcare Trust Advisors, LLC to perform property management and related services for the Company or the OP that is not hired or retained to perform substantially all of the functions of Healthcare Trust Advisors, LLC with respect to the Company and the OP as a whole shall not be deemed to be an Advisor.
1.3“Affiliate” means with respect to any Person, (i) any Person directly or indirectly owning, controlling or holding, with the power to vote, ten percent (10%) or more of the outstanding voting securities of such other Person;
(ii) any Person ten percent (10%) or more of whose outstanding voting securities are directly or indirectly owned, controlled or held, with the power to vote, by such other Person; (iii) any Person directly or indirectly controlling, controlled by or under common control with such other Person; (iv) any executive officer, director, trustee or general partner of such other Person; and (v) any legal entity for which such Person acts as an executive officer, director, trustee or general partner. For purposes of this definition, the terms “controls,” “is controlled by,” or “is under common control with” shall mean the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership or voting rights, by contract or otherwise.

1.4“Budget” has the meaning set forth in Section 2.5(c) hereof.

1.5“Company” means Healthcare Trust, Inc.
1.6“Director” means a director of the Company.
1.7“Gross Revenues” means all amounts actually collected as rents or other charges for the use and occupancy of the Property, but shall exclude interest and other investment income of the Owner and proceeds received by the Owner for a sale, exchange, condemnation, eminent domain taking, casualty or other disposition of assets of the Owner.
1.8“Improvements” means buildings, structures, equipment from time to time located on the Property and all parking and common areas located on the Property.

1.9   “Independent Director” means a Director who is not and who has not been within the last two years, directly or indirectly associated with the Sponsor or the Advisor by virtue of ownership of an interest in the Sponsor, the Advisor or any of their Affiliates.

1.10“Joint Venture” means the joint venture or partnership arrangements (other than between the Company and the OP) in which the Company or the OP or any of their subsidiaries is a co-venturer or general partner which are established to own Property.

Doc#: US1:11092483v5

1.11“Management Fees” has the meaning set forth in Section 4.1(a) hereof.

1.12“OP” means Healthcare Trust Operating Partnership, LP.
1.13“Oversight Fees” has the meaning set forth in Section 4.2 hereof.

1.14“Ownership Agreements” has the meaning set forth in Section 2.3(k) hereof.
F
1.15“Person” means an individual, corporation, partnership, joint venture, association, company (whether of limited liability or otherwise), trust, bank or other entity, or government or any agency or political subdivision of a government.

1.16“Plan” has the meaning set forth in Section 2.5(c) hereof.

1.17“Property” means 10186 Dupont Circle, Ft. Wayne, IN
1.18“Sponsor” means American Realty Capital VII, LLC, a Delaware limited liability company.

ARTICLE II.
APPOINTMENT OF THE MANAGER; SERVICES TO BE PERFORMED

2.1Appointment of the Manager. The Owner hereby engages and retains the Manager as the sole and exclusive manager and agent of the Property, and the Manager hereby accepts such appointment, all on the terms and conditions hereinafter set forth, it being understood that this Management Agreement shall cause the Manager to     be, at law, the Owner’s agent upon the terms contained herein.

2.2General Duties. The Manager shall use commercially reasonable efforts in performing its duties hereunder to manage, operate, maintain and lease the Property in a diligent, careful and vigilant manner. The services of the Manager are to be of scope and quality not less than those generally performed by professional property managers of other similar properties in the area. The Manager shall make available to the Owner the full benefit of the judgment, experience and advice of its members and staff with respect to the policies to be pursued by the Owner relating to the operation and leasing of the Property.

2.3Specific Duties. The Manager’s duties include the following:

(a)Lease Obligations. The Manager shall perform all duties of the landlord under all leases insofar as such duties relate to the operation, maintenance, and day-to-day management of the Property. The Manager shall also provide or cause to be provided, at the Owner’s expense, all services normally provided to tenants of like premises, including, where applicable and without limitation, gas, electricity or other utilities required to be furnished to tenants under leases, normal repairs and maintenance, and cleaning and janitorial service. The Manager shall arrange for and supervise the performance of all installations and improvements in space leased to any tenant which are either expressly required under the terms of the lease of such space or which are customarily provided to tenants.

(b)Maintenance. The Manager shall cause the Property to be maintained in the same manner as similar properties in the area. The Manager’s duties and supervision in this respect shall include, without limitation, cleaning of the interior and the exterior of the Improvements and the public common areas on the Property and the making and supervision of repair,  alterations,  and  decoration  of  the Improvements, subject to and in strict compliance with this Management Agreement and any applicable leases. Construction and rehabilitation activities undertaken by the Manager, if any, will be limited to activities related to the management, operation, maintenance, and leasing of the Property (e.g., repairs, renovations, and leasehold improvements).

(c)Leasing Functions. The Manager shall coordinate the leasing of the Property and shall negotiate and use its best efforts to secure executed leases from qualified tenants, and to execute same on behalf of the Owner, if requested, for available space in the Property, such leases to be in form and on terms approved by the Owner and the Manager, and to bring about complete leasing of the Property. The Manager shall be responsible for the hiring of all leasing agents, as necessary for the leasing of the Property, and to otherwise oversee and manage the leasing process on behalf of the Owner.

(d)Notice of Violations. The Manager shall forward to the Owner, promptly upon receipt, all notices of violation or other notices from any governmental authority, and board of fire underwriters or any insurance company, and shall make such recommendations regarding compliance with such notice as shall be appropriate.

(e)Personnel. Any personnel hired by the Manager to maintain, operate and lease the Property shall be the employees or independent contractors of the Manager and not of the Owner. The Manager shall use due care in the selection and supervision of such employees or independent contractors. The Manager shall be responsible for the preparation of and shall timely file all payroll tax reports and timely make payments of all withholding and other payroll taxes with respect to each employee.

(f)Utilities and Supplies. The Manager shall enter into or renew contracts for electricity, gas, steam, landscaping, fuel, oil, maintenance and other services as are customarily furnished or rendered in connection with the operation of similar rental property in the area.

(g)Expenses. The Manager shall analyze all bills received for services, work and supplies in connection  with maintaining and operating the Property, pay all such bills, and, if requested by the Owner, pay, when due, utility and water charges, sewer rent and assessments, any applicable taxes, including,   without limitation, any real estate taxes, and any other amount payable in respect to the Property. All bills shall be paid by the Manager within the time required to obtain discounts, if any. The Owner may from time to time request that the Manager forward certain bills to the Owner promptly after receipt, and the Manager shall comply with any such request. The payment of all bills, real property taxes, assessments, insurance premiums and any other amounts payable with respect to the Property shall be paid out of the Account by the Manager. All expenses shall be billed at net cost (i.e., less all rebates, commissions, discounts and allowances, however designed).

(h)Monies Collected. The Manager shall collect all rent and other monies from tenants and any sums otherwise due to the Owner with respect to the Property in the ordinary course of business. In collecting such monies, the Manager shall inform tenants of the Property that all remittances are to be in the form of a check or money order. The Owner authorizes the Manager to request, demand, collect and provide receipts for all such rent and other monies and to institute legal proceedings in the name of the Owner for the collection thereof and for the dispossession of any tenant in default under its lease.

(i)Banking Accommodations. Subject in all cases to any requirements imposed by any financing arrangements placed on the Property at any time and from time to time by Owner, the Manager shall establish and maintain a separate checking account (the “Account”) for funds relating to the Property. All monies deposited from time to time in the Account shall be deemed to be trust funds and shall be and remain the property of the Owner and shall be withdrawn and disbursed by the Manager for the account of the Owner only as expressly permitted by this Management Agreement for the purposes of performing the obligations of the Manager hereunder. No monies collected by the Manager on the Owner’s behalf shall be commingled with funds of the Manager. The Account shall be maintained, and monies shall be deposited therein and withdrawn therefrom, in accordance with the following:
(i)All sums received from rents and other income from the Property shall be promptly deposited by the Manager in the Account. The Manager shall have the right to designate two (2) or more persons who shall be authorized to draw against the Account, but only for purposes authorized by this Management Agreement.

(ii)All sums due to the Manager hereunder, whether for compensation, reimbursement for expenditures, or otherwise, as herein provided, shall be a charge against the operating revenues of the Property and shall be paid and/or withdrawn by the Manager from the Account prior to the making of any other disbursements therefrom.

(iii)On or before the 30th day following the end of each calendar quarter during the term of this Management Agreement, the Manager shall forward to the Owner all net operating proceeds from the preceding quarter, retaining at all times, however, a reserve of $5,000, in addition to any other amounts otherwise provided in the Budget.

(j)Tenant Complaints. The Manager shall maintain business-like relations with the tenants of the Property.

Doc#: US1:11092483v5

(k)Ownership Agreements. The Manager has received copies of the Limited Liability Company Operating Agreement and the other constitutive documents of the Owner (collectively, the “Ownership Agreements”) and is familiar with the terms thereof. The Manager shall use reasonable care to avoid any act or omission which, in the performance of its duties hereunder, shall in any way conflict with the terms of the Ownership Agreements.

(l)Signs. The Manager shall place and remove, or cause to be placed and removed, such signs upon the Property as the Manager deems appropriate, subject, however, to the terms and conditions of the leases and to any applicable ordinances and regulations.

2.4Approval of Leases, Contracts, Etc. In fulfilling its duties to the Owner, the Manager may and hereby is authorized to enter into any leases, contracts or agreements on behalf of the Owner in the ordinary course of the management, operation, maintenance and leasing of the Property.

2.5Accounting, Records and Reports.

(a)Records. The Manager shall maintain all office records and books of account and shall record therein, and keep copies of, each invoice received from services, work and supplies ordered in connection with the maintenance and operation of the Property. Such records shall be maintained on a double entry basis. The Owner and persons designated by the Owner shall at all reasonable times have access to and the right to audit and make independent examinations of such records, books and accounts and all vouchers, files and all other material pertaining to the Property and this Management Agreement, all of which the Manager agrees to keep safe, available and separate from any records not pertaining to the Property, at a place recommended by the Manager and approved by the Owner.

(b)Quarterly Reports. On or before the 30th day following the end of each calendar quarter during the term of this Management Agreement, the Manager shall prepare and submit to the Owner the following  reports and statements:

(i)Rental collection record;

(ii)Quarterly operating statement;

(iii)Copy of cash disbursements ledger entries for such period, if requested;

(iv)Copy of cash receipts ledger entries for such period, if requested;
(v)The original copies of all contracts entered into by the Manager on behalf of the Owner during such period, if requested; and

(vi)Copy of ledger entries for such period relating to security deposits maintained by the Manager, if requested.

(c)Budgets and Leasing Plans. On or before November 15 of each calendar year during the term of this Management Agreement, the Manager shall prepare and submit to the Owner for its approval an operating budget (a “Budget”) and a marketing and leasing plan (a “Plan”) on the Property for the calendar year immediately following such submission. Each Budget and Plan shall be in the form approved by the Owner prior to the date thereof. As often as reasonably necessary during the period covered by any Budget or Plan, the Manager may submit to the Owner for its approval an updated Budget or Plan incorporating such changes as shall be necessary to reflect cost overruns and the like during such period. If the Owner does not disapprove a Budget or Plan within thirty (30) days after receipt thereof by the Owner, such Budget or Plan shall be deemed approved. If the Owner shall disapprove any Budget or Plan, it shall so notify the Manager within said thirty (30) day period and explain the reasons therefor. The Manager will not incur any costs other than those estimated in an approved Budget except for:

(i)maintenance or repair costs under $5,000 per Property;

(ii)costs incurred in emergency situations in which action is immediately necessary for the preservation or safety of the Property, or for the safety of occupants or other persons on the Property (or to avoid the suspension of any necessary service of the Property);

(iii)expenditures for real estate taxes and assessments; and

(iv)maintenance supplies calling for an aggregate purchase price of less than $25,000 for all Property.

(d)Returns Required by Law. The Manager shall execute and file when due all forms, reports, and returns required by law relating to the employment of its personnel.

(e)Notices. Promptly after receipt, the Manager shall deliver to the Owner all notices, from any tenant, or any governmental authority, that are not of a routine nature. The Manager shall also report expeditiously to the Owner notice of any extensive damage to any part of the Property.

2.6Subcontracting. Notwithstanding anything to the contrary contained in this Agreement, the Manager may subcontract any of its duties hereunder, without the consent of the Owner, for a fee that may be less than the Management Fees paid hereunder. In the event that the Manager does so subcontract any its duties hereunder, such fees payable to such third parties may, at the instruction of the Manager, be deducted from the Management Fee and paid by the Owner to such parties, or paid directly by the Manager to such parties, in its discretion.

ARTICLE III. EXPENSES

3.1Owner’s Expenses. Except as otherwise specifically provided, all costs and expenses incurred hereunder by the Manager in fulfilling its duties to the Owner shall be for the account of and on behalf of the Owner. Such costs and expenses may include, without limitation, reasonable wages and salaries and other employee-related expenses of all on-site and off-site employees of the Manager who are engaged in the operation, management, maintenance and leasing of the Property, including taxes, insurance and benefits relating to such employees, and legal, travel and other out-of-pocket expenses which are directly related to the operation, management, maintenance and leasing of specific Property. All costs and expenses for which the Owner is responsible under this Management Agreement shall be paid by the Manager out of the Account. In the event the Account does not contain sufficient funds to pay all of the costs and expenses, the Owner shall fund all sums necessary to meet such additional costs and expenses.

3.2Manager’s Expenses. The Manager shall, out of its own funds, pay all of its general overhead and administrative expenses.

ARTICLE IV. MANAGER’S  COMPENSATION

4.1Management Fees.

(a)The Owner shall pay the Manager or any of its Affiliates property management and leasing fees (the “Management Fees”), on a monthly basis, equal to: (i) with respect to stand-alone, single-tenant net leased properties, one and a half percent (1.5%) of Gross Revenues from the properties managed; and
(ii) with respect to all other types of properties, two and a half percent (2.5%) of Gross Revenues from the properties managed, plus market-based leasing commissions applicable to the geographic location of the Property. Except as otherwise set forth herein, the Owner shall also reimburse the Manager for any costs and expenses incurred by the Manager in connection with managing the Property.

(b)The Manager may charge a separate fee for the one-time initial rent-up or leasing-up of newly constructed Properties in an amount not to exceed the fee customarily charged in arm’s length transactions by others rendering similar services in the same geographic area for similar properties.

(c)Notwithstanding the foregoing, the Manager may be entitled to receive higher fees in the event the Manager can demonstrate to the satisfaction of the board of directors of the Company (including a majority of the Independent Directors) through empirical data that a higher competitive fee is justified for the services rendered and the type of Property managed. As described in Section 2.6 above, in the event that the Manager properly engages one or more third parties to perform the services described herein, the fees payable to such parties for such services will be deducted from the Management Fees, or paid directly by the Manager, at the Manager’s option. The Manager’s compensation under this 

Doc#: US1:11092483v5

Section 4.1 shall apply to all renewals, extensions or expansions of leases which the Manager originally negotiated.

4.2Oversight Fees. If the Owner contracts directly with one or more third parties for the services described in Section 2.3 above, the Owner will pay such third parties customary market fees and shall pay the Manager oversight fees (the “Oversight Fees”) equal to 1.0% of the Gross Revenues of the particular Property managed by such third parties. In no event shall the Manager (including any Affiliate of the Manager) be entitled to both Management Fees and Oversight Fees with respect to any particular Property.

4.3Additional Fees. If the Manager provides services other than those specified herein, the Owner shall pay to the Manager a monthly fee equal to no more than that which the Owner would pay to a third party that is not an Affiliate of the Owner or the Manager to provide such services.

4.4Audit Adjustment. If any audit of the records, books or accounts relating to the Property discloses an overpayment or underpayment of Management Fees, the Owner or the Manager shall promptly pay to the other party the amount of such overpayment or underpayment, as the case may be. If such audit discloses an overpayment of Management Fees for any fiscal year of more than the correct Management Fees for such fiscal year, the Manager shall bear the cost of such audit.

ARTICLE V.
INSURANCE AND INDEMNIFICATION

5.1Insurance to be Carried.

(a)The Manager shall obtain and keep in full force and effect insurance on the Property against such hazards as the Owner and the Manager shall deem appropriate, but in any event, insurance sufficient to comply with the leases and the Ownership Agreements shall be maintained. All liability policies shall provide sufficient insurance satisfactory to both the Owner and the Manager and shall contain waivers of subrogation for the benefit of the Manager.

(b)The Manager shall obtain and keep in full force and effect, in accordance with the laws of the state in which each Property is located, employer’s liability insurance applicable to and covering all employees of the Manager at the Property and all persons engaged in the performance of any work required hereunder, and the Manager shall furnish the Owner certificates of insurers naming the Owner as a co- insured and evidencing that such insurance is in effect. If any of the Manager’s duties hereunder are subcontracted as permitted under Section 2.6, the Manager shall include in each subcontract a provision that the subcontractor shall also furnish the Owner with such a certificate.

5.2Cooperation with Insurers. The Manager shall cooperate with and provide reasonable access to the Property to representatives of insurance companies and insurance brokers or agents with respect to insurance which is in effect or for which application has been made. The Manager shall use its best efforts to comply with all requirements of insurers.

5.3Accidents and Claims. The Manager shall promptly investigate and report in detail to the Owner all accidents, claims for damage relating to the ownership, operation or maintenance of the Property, and any damage or destruction to the Property and the estimated costs of repair thereof, and shall prepare for approval by the Owner all reports required by an insurance company in connection with any such accident, claim, damage, or destruction. Such reports shall be given to the Owner promptly and any report not so given within ten (10) days after the occurrence of any such accident, claim, damage or destruction shall be noted in the report delivered to the Owner pursuant to Section 2.5(b). The Manager is authorized to settle any claim against an insurance company arising out   of any policy and, in connection with such claim, to execute proofs of loss and adjustments of loss and to collect and provide receipts for loss proceeds.

5.4Indemnification. The Manager shall hold the Owner harmless from and indemnify and defend the Owner against any and all claims or liability for any injury or damage to any person or property whatsoever for which the Manager is responsible occurring in, on, or about the Property, including, without limitation, the Improvements when such injury or damage is caused by the negligence or misconduct of the Manager, its agents, servants, or employees, except to the extent that the Owner recovers insurance proceeds with respect to such matter. The Owner will indemnify and hold the Manager harmless against all liability for injury to persons and damage to property caused by 

the Owner’s negligence and which did not result from the negligence or misconduct of the Manager, except to the extent the Manager recovers insurance proceeds with respect to such matter.

ARTICLE VI. TERM; TERMINATION

6.1Term. This Management Agreement shall commence on the date first above written and shall continue until terminated in accordance with the earliest to occur of the following:

(a)Two years from the date of the commencement of the term hereof unless any party gives written notice to the other parties of its intention to terminate this Management Agreement at least ninety (90) days prior to the end of the initial two year term.  If no party gives such written notice ninety (90) days prior to the end of the initial two year term, this Management Agreement will be automatically extended for an unlimited number of successive one year terms at the end of each year unless any party gives ninety (90) days’ prior written notice to the other parties of its intention not to renew this Management Agreement;

(b)Immediately upon the occurrence of any of the following:
(i)A decree or order is rendered by a court having jurisdiction (A) adjudging the Manager as bankrupt or insolvent, (B) approving as properly filed a petition seeking reorganization, readjustment, arrangement, composition or similar relief for the Manager under the federal bankruptcy laws or any similar applicable law or practice, or (C) appointing a receiver, liquidator, trustee or assignee in bankruptcy or insolvency of the Manager or a substantial part of the  Manager’s assets, or for the winding up or liquidation of its affairs, or
(ii)The Manager (A) voluntarily institutes proceedings to be adjudicated bankrupt or insolvent, (B) consents to the filing of a bankruptcy proceeding against it, (C) files a petition, answer or consent seeking reorganization, readjustment, arrangement, composition or relief under            any similar applicable law or practice, (D) consents to the filing of any such petition, or to the appointment of a receiver, liquidator, trustee or assignee in bankruptcy or insolvency for it or for a substantial part of its assets, (E) makes an assignment for the benefit of creditors, (F) is unable to or admits in writing its inability to pay its debts generally as they become due, unless such inability shall be the fault of the Owner, or (G) takes corporate or other action in furtherance of any of the aforesaid purposes; and

(c)Upon written notice from the Owner in the event that the Manager commits an act of gross negligence or willful misconduct in the performance of its duties hereunder.

Upon termination, the obligations of the parties hereto shall cease; provided, however; that the Manager shall comply with the provisions hereof applicable in the event of termination and shall be entitled to receive all compensation which may be due to the Manager hereunder up to the date of such termination; provided, further, however; that if this Management Agreement terminates pursuant to clauses (b) or (c) of this Section 6.1, the Owner shall have other remedies as may be available at law or in equity.

6.2Manager’s Obligations after Termination. Upon the termination of this Management Agreement, the Manager shall have the following duties:

(a)The Manager shall deliver to the Owner, or its designee, all books and records with respect to the Property.

(b)The Manager shall transfer and assign to the Owner, or its designee, all service contracts and personal property relating to or used in the operation and maintenance of the Property, except personal property paid for and owned by the Manager. Manager shall also, for a period of sixty
(60) days immediately following the date of such termination, make itself available to consult with and advise the Owner, or its designee, regarding the operation, maintenance and leasing of the Property.

(c)The Manager shall render to the Owner an accounting of all funds of the Owner in its possession and shall deliver to the Owner a statement of Management Fees claimed to be due the Manager and 

Doc#: US1:11092483v5

shall cause funds of the Owner held by the Manager relating to the Property to be paid to the Owner or its designee.

(d)The Manager shall cooperate with the Owner to provide an orderly transition of the Manager’s duties hereunder.

ARTICLE VII. MISCELLANEOUS

7.1Notices. All notices, approvals, consents and other communications hereunder shall be in writing, and, except when receipt is required to start the running of a period of time, shall be deemed given when delivered in person or on the fifth (5th) day after its mailing by either party by registered or certified United States mail, postage prepaid and return receipt requested, to the other party, at the addresses set forth after their respect name below or at such different addresses as either party shall have theretofore advised the other party in writing in accordance with this Section 7.1.

To the Owner:    Healthcare Trust, Inc.
650 Fifth Avenue
30th Floor
New York, NY 10019
Attention: Chief Executive Officer and
              Chief Financial Officer

with a copy to:

Healthcare Trust Operating Partnership, L.P.
650 Fifth Avenue
30th Floor
New York, NY 10019
Attention: Chief Executive Officer and
              Chief Financial Officer

To the Manager:    Healthcare Trust Properties, LLC 
650 Fifth Avenue
30th Floor
New York, NY 10019
        Attention: Edward M. Weil, Jr.

7.2Governing Law. This Management Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to the principles of conflicts of law thereof.

7.3Assignment.  This Management Agreement may be assigned by the Manager (a) to an Affiliate of the Manager, or (b) to any party with expertise in commercial real estate and which has, together with its Affiliates, over $100 million of assets under management. Any assignee of the Manager shall be bound hereunder to the same extent as the Manager. This Agreement shall not be assigned by the Owner without the written consent of the Manager, except to a Person which is a successor to such Owner.  Such successor shall be bound hereunder to the same extent as such Owner.  Notwithstanding anything to the contrary contained herein, the economic rights of the Manager hereunder, including the right to receive all compensation hereunder, may be sold, transferred or assigned by the Manager without the consent of the Owner.

7.4No Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Management Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrences. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver.

7.5Amendments. This Management Agreement may be amended only by an instrument in writing signed by the party against whom enforcement of the amendment is sought.

7.6Headings. The headings of the various subdivisions of this Management Agreement are for reference only and shall not define or limit any of the terms or provisions hereof.

7.7Counterparts. This Management Agreement may be executed with counterpart signature pages (including, without limitation, by delivery of counterpart signature pages by electronic (including PDF) and facsimile transmission) or in any number of counterparts, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument.

7.8Entire Agreement. This Management Agreement contains the entire agreement and understanding among the parties hereto with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof.

7.9Disputes. If there shall be a dispute between the Owner and the Manager relating to this Management Agreement resulting in litigation, the prevailing party in such litigation shall be entitled to recover from the other party to such litigation such amount as the court shall fix as reasonable attorneys’ fees.

7.10Activities of the Manager. The obligations of the Manager pursuant to the terms and provisions of this Management Agreement shall not be construed to preclude the Manager from engaging in other activities or business ventures, whether or not such other activities or ventures are in competition with the Owner or the business of the Owner.
7.11Independent Contractor. The Manager and the Owner shall not be construed as joint venturers or partners of each other pursuant to this Management Agreement, and neither party shall have the power to bind or obligate the other except as set forth herein. In all respects, the status of the Manager to the Owner under this Management Agreement is that of an independent contractor.

7.12Pronouns and Plurals. Whenever the context may require, any pronoun used in this Management Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa.

[Remainder of page intentionally left blank]

Doc#: US1:11092483v5

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

ARHC OPFWNIN02, LLC

                       By:      /s/ Michael Anderson
Name: Michael Anderson
Title:   Authorized Signatory

HEALTHCARE TRUST PROPERTIES, LLC

   By:      /s/ James Tanaka
Name: James Tanaka 
Title:   Authorized SignatoryDocument

Exhibit 10.1
EXECUTION VERSION

FIRST  AMENDMENT  TO  LOAN  AND  SERVICING  AGREEMENT  (this
“Amendment”), dated as of July 1, 2021 (the “Amendment Date”), among FBCC Lending I, LLC, a Delaware limited liability company (together with its successors and assigns in such capacity, the “Borrower”), Franklin BSP Capital Adviser L.L.C., as servicer (the “Servicer”), Morgan Stanley Bank, N.A., as lender (the “Required Lender”), and Morgan Stanley Asset Funding, Inc., as administrative agent (in such capacity, together with its successors and permitted assigns in such capacity, the “Administrative Agent”).

WHEREAS, the Borrower, the Required Lender, the Administrative Agent, and the Servicer are party to that certain Loan and Servicing Agreement, dated as of March 15, 2021 (as the same may be amended, modified or supplemented prior to the Amendment Date in accordance with the terms thereof, the “Loan and Servicing Agreement”), by and among the Borrower, the Servicer, Franklin BSP Capital Corporation, as the transferor, each of the lenders from time to time party thereto (the “Lenders”), the Administrative Agent and U.S. Bank National Association, as the collateral agent, the account bank and the collateral custodian, providing, among other things, for the making and the administration of the Advances by the Lenders to the Borrower; and

WHEREAS, the Borrower, the Required Lender, the Administrative Agent, and the Servicer desire to amend certain provisions of the Loan and Servicing Agreement, in accordance with Section 12.01 thereof and subject to the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the foregoing premises and the mutual agreements contained herein, and for 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 1.1. Defined Terms. Terms used but not defined herein have the respective meanings given to such terms in the Loan and Servicing Agreement.

ARTICLE II

Amendments to Loan and Servicing Agreement

SECTION 2.1.   As of the Amendment Date, the Loan and Servicing Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the bold and double-underlined text (indicated textually in the same manner as the following example: bold and double-underlined text) as set forth on the pages of the Loan and Servicing Agreement attached as Appendix A hereto.

USActive 56339965.3

ARTICLE III

Representations and Warranties

SECTION 3.1.  The Borrower and the Servicer hereby represent and warrant to the Administrative Agent and the Lenders that, as of the Amendment Date, (i) no Unmatured Event of Default, Event of Default or Servicer Default has occurred and is continuing and (ii) the representations and warranties of the Borrower and the Servicer contained in the Loan and Servicing Agreement are true and correct in all material respects on and as of such date as though made on and as of such date (other than any representation and warranty that is made as of a specific date, which representation and warranty was true in all material respects as of such date).

ARTICLE IV

Conditions Precedent

SECTION 4.1. This Amendment shall become effective as of the date first written above upon the satisfaction of the following conditions:

(a)its execution and delivery by each party hereto;

(b)the Administrative Agent’s receipt of a legal opinion of counsel for the Borrower, in form and substance reasonably satisfactory to the Administrative Agent covering such matters as the Administrative Agent may reasonably request;

(c)the Administrative Agent’s receipt of a good standing certificate for the Borrower issued by the applicable office body of its jurisdiction of organization and a certified copy of the resolutions of the Borrower approving this Amendment and the transactions contemplated hereby, certified by its secretary or assistant secretary or other authorized officer; and

(d)the payment by the Borrower in immediately available funds of all fees (including reasonable and documented fees, disbursements and other charges of outside counsel to the Administrative Agent) to be received on the Amendment Date.

ARTICLE V

Miscellaneous

SECTION 5.1. Governing Law. THIS AMENDMENT AND THE RIGHTS  AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
			
	2

SECTION 5.2. Severability Clause. In case any provision in this Amendment 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 5.3. Ratification. Except as expressly amended hereby, the Loan and Servicing Agreement is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect. This Amendment shall form a part of the Loan and Servicing Agreement for all purposes.

SECTION 5.4.    Counterparts.   The parties hereto may sign one or more copies of this Amendment in counterparts, all of which together shall constitute one and the same agreement. Delivery of an executed signature page of this Amendment by email transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION 5.5. Headings. The headings of the Articles and Sections in this Amendment are for convenience of reference only and shall not be deemed to alter or affect the meaning or interpretation of any provisions hereof.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the Amendment Date.

BORROWER:
FBCC LENDING I, LLC

By: /s/ Nina Baryski          
Name: Nina Baryski
Title: Authorized Signatory

 SERVICER:

FRANKLIN BSP CAPITAL ADVISER L.L.C.

By: /s/ Nina Baryski
Name: Nina Baryski
Title: Authorized Signatory

ADMINISTRATIVE AGENT:
MORGAN STANLEY ASSET FUNDING, INC.

By: /s/ Matthieu Milgrom 

     Name: Matthieu Milgrom 
     Title: Authorized Signatory

REQUIRED LENDER:

MORGAN STANLEY BANK, N.A.

By: /s/ Nii Dodoo    
Name:   Nii Dodoo
Title: Authorized Signer

Appendix A

Conformed Loan and Servicing Agreement 
[see attached]
			
	USActive 56339965.3

EXECUTION VERSION
Conformed through First Amendment dated July 1, 2021

Up to U.S. $100,000,000200,000,000

LOAN AND SERVICING AGREEMENT

Dated as of March 15, 2021 among
FBCC LENDING I, LLC,
as the Borrower

FRANKLIN BSP CAPITAL CORPORATION,
as the Transferor

FRANKLIN BSP CAPITAL ADVISER L.L.C.,
as the Servicer

MORGAN STANLEY ASSET FUNDING, INC.,
as the Administrative Agent

EACH OF THE LENDERS FROM TIME TO TIME PARTY HERETO,
as the Lenders and
U.S. BANK NATIONAL ASSOCIATION,
as the Collateral Agent, Account Bank and Collateral Custodian

			
	USActive 56339966.156339966.2

TABLE OF CONTENTS
						
		Page
	ARTICLE I DEFINITIONS
	2
		
	Section 1.01    Certain Defined Terms
	2
	Section 1.02    Other Terms
	60 59

	Section 1.03    Computation of Time Periods
	60
	Section 1.04    Interpretation
	60
		
	ARTICLE II THE FACILITY
	62 61

		
	Section 2.01   Advances
	62 61

	Section 2.02    Procedure for Advances	62
	Section 2.03    Determination of Yield
	63
	Section 2.04   Remittance Procedures
	64 63

	Section 2.05    Instructions to the Collateral Agent and the Account Bank
	68 67

	Section 2.06    Borrowing Base Deficiency Payments
	68
	Section 2.07    Sale of Loan Assets; Affiliate Transactions
	69
	Section 2.08    Payments and Computations, Etc
	72
	Section 2.09   Unused Fee
	73 72

	Section 2.10    Increased Costs; Capital Adequacy	73
	Section 2.11    Taxes	75 74

	Section 2.12    Grant of a Security Interest; Collateral Assignment of Agreements
	79 78

	Section 2.13    Evidence of Debt
	80 79

	Section 2.14    Release of Loan Assets. 	80 79

	Section 2.15    Treatment of Amounts Received by the Borrower	80
	Section 2.16    Prepayment; Termination; Reduction. 	80
	Section 2.17    Collections and Allocations	81
	Section 2.18    Reinvestment of Principal Collections	83 82

	Section 2.19   Defaulting Lenders	83
		
	ARTICLE III CONDITIONS PRECEDENT 	85 84

		
	Section 3.01    Conditions Precedent to Effectiveness	85 84

	Section 3.02    Conditions Precedent to All Advances	86
	Section 3.03    Advances Do Not Constitute a Waiver
	88
	Section 3.04    Conditions to Acquisition of Loan Assets
	88
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES
	90 89

		
	Section 4.01    Representations and Warranties of the Borrower
	90 89

						
	Section 4.02 Representations and Warranties of the Borrower Relating to                               
	99 98

	Agreement and the Collateral
	
	Section 4.03    Representations and Warranties of the Servicer
	

100 99

	Section 4.04    Representations and Warranties of the Collateral Agent	104  103

	Section 4.05    Representations and Warranties of the Collateral Custodian
	105  104

		
	ARTICLE V GENERAL COVENANTS 	106  105

		
	Section 5.01    Affirmative Covenants of the Borrower	106  105

	Section 5.02    Negative Covenants of the Borrower	113  112

	Section 5.03    Affirmative Covenants of the Servicer	116  115

	Section 5.04    Negative Covenants of the Servicer	120  119

	Section 5.05    Affirmative Covenants of the Collateral Agent	121  120

	Section 5.06    Negative Covenants of the Collateral Agent	121  120

	Section 5.07    Affirmative Covenants of the Collateral Custodian	121  120

	Section 5.08    Negative Covenants of the Collateral Custodian	122  121

		
	ARTICLE VI ADMINISTRATION AND SERVICING OF CONTRACTS 	122  121

		
	Section 6.01    Appointment and Designation of the Servicer	122  121

	Section 6.02    Duties of the Servicer	124  123

	Section 6.03    Authorization of the Servicer	126  125

	Section 6.04    Collection of Payments; Accounts	126
	Section 6.05    Realization Upon Loan Assets	128
	Section 6.06   Servicer Compensation	129  128

	Section 6.07    Payment of Certain Expenses by Servicer	129  128

	Section 6.08 Reports to the Administrative Agent; Account Statements; Servicer	
	Information	129
	Section 6.09    Annual Statement as to Compliance	132  131

	Section 6.10    Annual Independent Public Accountant’s Servicing Reports	132  131

	Section 6.11 Procedural Review of Loan Assets; Access to Servicer and Servicer’s	
	Records	132
	Section 6.12    The Servicer Not to Resign	133  132

	Section 6.13    Required Sale Assets	133
		
	ARTICLE VII EVENTS OF DEFAULT 	134  133

		
	Section 7.01    Events of Default	134  133

						
	Section 7.02    Additional Remedies of the Administrative Agent	137  136

		
		
		
	ARTICLE VIII INDEMNIFICATION 
	141  140

		
	Section 8.01    Indemnities by the Borrower	141  140

	Section 8.02    Indemnities by Servicer	142\  141

	Section 8.03    Waiver of Certain Claims	143  142

	Section 8.04   Legal Proceedings	143  142

	Section 8.05   After-Tax Basis	144  143

		
	ARTICLE IX THE ADMINISTRATIVE AGENT 	144  143

		
	Section 9.01      The Administrative Agent
	144  143

		
	ARTICLE X COLLATERAL AGENT 	148
		
	Section 10.01  Designation of Collateral Agent	148
	Section 10.02  Duties of Collateral Agent	148  149

	Section 10.03  Merger or Consolidation
	152
	Section 10.04  Collateral Agent Compensation
	152
	Section 10.05  Collateral Agent Removal
	152  153

	Section 10.06  Limitation on Liability
	152  153

	Section 10.07  Collateral Agent Resignation
	155
	Section 10.08  Reallocation of Advances
	155  156

		
	ARTICLE XI COLLATERAL CUSTODIAN 	155  156

		
	Section 11.01  Designation of Collateral Custodian	155  156

	Section 11.02  Duties of Collateral Custodian	156
	Section 11.03  Merger or Consolidation	158  159

	Section 11.04  Collateral Custodian Compensation	159
	Section 11.05  Collateral Custodian Removal. 
	159
	Section 11.06  Limitation on Liability	159  160

	Section 11.07  Collateral Custodian Resignation	161  162

	Section 11.08  Release of Documents	161  162

	Section 11.09  Return of Required Loan Documents	162  163

	Section 11.10 Access to Certain Documentation and Information Regarding the	
	Collateral	162  163

						
	Section 11.11 Bailment	163
		
	ARTICLE XII MISCELLANEOUS 	163
		
	Section 12.01  Amendments and Waivers	163
	Section 12.02 Notices, Etc	165
	Section 12.03  No Waiver; Remedies	167
	Section 12.04  Binding Effect; Assignability; Multiple Lenders. 	167  168

	Section 12.05  Term of This Agreement	168  169

	Section 12.06  GOVERNING LAW; JURY WAIVER	169
	Section 12.07  Costs, Expenses and Taxes	170
	Section 12.08 Further Assurances	170  171

	Section 12.09  Recourse Against Certain Parties	171
	Section 12.10  Execution in Counterparts; Severability; Integration	171  172

	Section 12.11 Characterization of Conveyances Pursuant to the Purchase and Sale	
	Agreement	172
	Section 12.12 Confidentiality	173
	Section 12.13  Waiver of Set Off	174  175

	Section 12.14  Headings and Exhibits
	174  175

	Section 12.15 Ratable Payments	174  175

	Section 12.16  Failure of Borrower or Servicer to Perform Certain Obligations. 	175
	Section 12.17  Power of Attorney	175
	Section 12.18  Delivery of Termination Statements, Releases, etc	175  176

	Section 12.19 Non-Petition	175  176

	Section 12.20 Acknowledgment and Consent to Bail-In of Affected Financial	
	Institutions	176  177

		
		
		
		
		
		
		
		
		
		
		
		

LIST OF SCHEDULES, EXHIBITS AND ANNEXES

SCHEDULES

SCHEDULE I    -    Conditions Precedent Documents
SCHEDULE II    -    Eligibility Criteria
SCHEDULE III    -    Agreed-Upon Procedures for Independent Public Accountants
SCHEDULE IV    -    Loan Asset Schedule
SCHEDULE V    -    Diversity Score Calculation
 SCHEDULE VI    -    Industry Classification
 SCHEDULE VII  -    Specified Industries
 SCHEDULE VIII -    Pre-Approved Loan Assets

ANNEXES

ANNEX A    -    Commitments EXHIBITS
EXHIBIT A    -    Form of Approval Notice
EXHIBIT B    -    Form of Borrowing Base Certificate
EXHIBIT C    -    Form of Disbursement Request
EXHIBIT D    -    Form of Notice of Borrowing
EXHIBIT E    -    Form of Notice of Reduction (Reduction of Advances Outstanding)
 EXHIBIT F    -    Form of Notice of Termination/Permanent Reduction
EXHIBIT G    -    Form of Certificate of Closing Attorneys
 EXHIBIT H    -    Form of Servicing Report
EXHIBIT I    -    Form of Servicer’s Certificate (Servicing Report)
 EXHIBIT J    -    Form of Release of Required Loan Documents
 EXHIBIT K    -    Form of Assignment and Acceptance
EXHIBIT L    -    Forms of U.S. Tax Compliance Certificates
 EXHIBIT M    -    Form of Joinder Supplement
EXHIBIT N    -    Form of Power of Attorney for Servicer
 EXHIBIT O    -    Form of Power of Attorney for Borrower
 EXHIBIT P    -    Form of Collateral Custodian Certification
			
	USActive 56339966.156339966.2

This LOAN AND SERVICING AGREEMENT is made as of March 15, 2021,
among:
(1)FBCC LENDING I, LLC, a Delaware limited liability company, as the

Borrower (as defined below);

(2)FRANKLIN BSP CAPITAL CORPORATION, a Delaware corporation, as the Transferor (as defined below);

(3)FRANKLIN BSP CAPITAL ADVISER L.L.C., a Delaware limited liability company, as the Servicer (as defined below);

(4)EACH OF THE LENDERS FROM TIME TO TIME PARTY HERETO, as a Lender (as defined below);

(5)MORGAN STANLEY ASSET FUNDING, INC., as the Administrative Agent (as defined below); and

(6)U.S. BANK NATIONAL ASSOCIATION, as the Collateral Agent (as defined below), the Account Bank (as defined below) and the Collateral Custodian (as defined below).

RECITALS

WHEREAS, the Borrower has requested that the Lenders make available to the Borrower a revolving loan facility in the maximum principal amount of up to the Facility Amount (as defined below), the proceeds of which shall be used by the Borrower to fund the purchase of certain Eligible Loan Assets (as defined below);

WHEREAS, the Borrower is willing to grant to the Collateral Agent, for the benefit of the Secured Parties (as defined below), a lien on and security interest in the Collateral (as defined below) to secure the payment in full of the Obligations (as defined below);

WHEREAS, the Lenders are willing to extend financing to the Borrower on the terms and conditions set forth herein;

WHEREAS, the Borrower also desires to retain the Servicer to perform certain servicing functions related to the Collateral on the terms and conditions set forth herein; and

WHEREAS, the Servicer desires to perform certain servicing functions related to the Collateral on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:
			
	USActive 56339966.156339966.2

(c)not more than 5.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are Delayed Draw Loan Assets or Revolving Loans, in the aggregate;

(d)not more than 15.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are Second Lien Loans or FLLO Loans, in the aggregate;

(e)not more than 10.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are Second Lien Loans;

(f)not more than 5.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are fixed rate Loan Assets;

(g)not more than 30.0% of the Concentration Denominator may consist of
Eligible Loan Assets with a Total Leverage Ratio of greater than 6.50:1.00 as of the date of determination;

(h)not more than 5.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are PIK Loan Assets;

(i)not more than 10.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are Cov-Lite Loan Assets;

(j)not more than 10.0% of the Concentration Denominator may consist of
Eligible Loan Assets that are issued by an Obligor that has an EBITDA of less than$15,000,000; and

(k)not more than 15.025.0% of the Concentration Denominator may consist
of Eligible Loan Assets that are Broadly Syndicated Loans.

“Constituent Documents” means in respect of any Person, the certificate or articles of formation, incorporation or organization, the limited liability company agreement, operating agreement, partnership agreement, joint venture agreement or other applicable agreement of formation or organization (or equivalent or comparable constituent documents), articles of association and other organizational documents and by-laws and any certificate of incorporation, certificate of formation, certificate of limited partnership and other agreement, similar instrument filed or made in connection with its formation or organization, in each case,  as the same may be amended, modified, supplemented, restated or replaced from time to time in accordance with the terms thereof. For the avoidance of doubt, the “Constituent Documents” of the Borrower include, the Borrower Consent, the Borrower Certificate of Formation and the Borrower LLC Agreement.

“Control Agreement” means that certain Control Agreement, dated as of the Closing Date, among the Borrower, the Servicer, the Account Bank, the Administrative Agent and the Collateral Agent, which agreement relates to the Controlled Accounts, as such agreement may be amended, modified, supplemented, restated or replaced from time to time in accordance with the terms thereof.
			
	- 18-

relevant Person, (b) a trade or business (whether or not incorporated) under common control (within the meaning of Section 414(c) of the Code) with that Person, or (c) solely for purposes of Section 302 of ERISA and Section 412 of the Code, a member of the same affiliated service group (within the meaning of Section 414(m) of the Code) as, or that otherwise is aggregated under Section 414(o) of the Code with, that Person, any corporation described in clause (a)  above or any trade or business described in clause (b) above.

“ERISA Event” means (a) with respect to a Pension Plan, any of the events set forth in Section 4043(c) of ERISA or the regulations issued thereunder, other than events for which the thirty (30) day notice period has been waived; (b) a withdrawal by the Borrower or  any of its ERISA Affiliates from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as a termination under Section 4062(e) of ERISA; (c) the failure to satisfy the minimum funding standards (within the meaning of Section 412 of the Code or Section 302 of ERISA), whether or not waived, with respect to a Pension Plan; (d) the failure to make any required contribution to a Multiemployer Plan; (e) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to a complete or partial withdrawal by the Borrower or any of its ERISA Affiliates from a Multiemployer Plan, written notification of the Borrower or any of its ERISA Affiliates concerning the imposition of any withdrawal liability, as such term is defined in Part I of Subtitle E of Title IV of ERISA, as a result of a complete or partial withdrawal from a Multiemployer Plan or written notification that a Multiemployer Plan is insolvent within the meaning of Title IV of ERISA or in “endangered” or “critical” status (within the meaning of Section 432 of the Code or Section 305 of ERISA); (f) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (g) the filing under Section 4041(c) of ERISA of a notice of intent to terminate a Pension Plan, the treatment of a Pension Plan or Multiemployer Plan amendment as a termination under Section 4041 or Section 4041A of ERISA, or the receipt by the Borrower or any of its ERISA Affiliates from the PBGC of any notice relating to the intention to terminate a Pension Plan or Multiemployer Plan; (h) the imposition of any liability under Title IV of ERISA with respect to the termination of any Pension Plan or Multiemployer Plan, other than for the payment of plan contributions or PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any of its ERISA Affiliates; or (i) the occurrence of a non-exempt prohibited transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) which could result in liability to the Borrower or any of its ERISA Affiliates.

“Erroneous Payment” has the meaning assigned to that term in Section 9.01(j)(i)
 “Erroneous Payment Notice” has the meaning assigned to that term in Section 
9.01(j)(ii).

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule
published by the Loan Market Association (or any successor person), as in effect from time to time.

“Event of Default” has the meaning assigned to that term in Section 7.01.
			
	- 24-

payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.11(g), and (d) any withholding Taxes imposed under FATCA.

“Facility Amount” means the aggregate Commitments as then in effect, which on the Closing Date shall be $100,000,000,200,000,000, as such amount may be reduced pursuant  to Section 2.16(b).

“Facility Maturity Date” means the earliest of (a) the Business Day designated by the Borrower to the Lender pursuant to Section 2.16(b) to terminate this Agreement, (b) the Stated Maturity or (c) the date on which the Facility Maturity Date is declared (or is deemed to have occurred automatically) pursuant to Section 7.01.

“FATCA” means Sections 1471 through 1474 of the Code (or any amended or successor versions of Sections 1471 through 1474 of the Code that are substantively comparable and not materially more onerous to comply with), as of the date of this Agreement, and any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(1) of the Code (or any amended or successor version described above), and any fiscal regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among Governmental Authorities and implementing such Sections of the Code.

“Federal Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.

“Fees” means (a) the Unused Fee, (b) the Administrative Agent Fee and (c) the fees payable to each Lender pursuant to the terms of any Lender Fee Letter.

“Financial Asset” has the meaning specified in Section 8-102(a)(9) of the UCC.
 “Financial Covenant Test” means a test that will be satisfied on any date of
determination if the Transferor maintains (i) Unrestricted Cash plus (ii) Unpledged Capital Commitments plus (iii) Retained Principal Distributions plus (iv) undrawn commitments under credit facilities, in an aggregate amount in excess of 5% of the total indebtedness of the Transferor and its Subsidiaries.

“First Amendment Closing Date” means July 1, 2021.

“First Lien Loan” means any Loan Asset (a) that is secured by a valid and perfected first priority Lien on substantially all of the Obligor’s assets constituting Related Collateral, subject to any Permitted Working Capital Liens and any expressly permitted Liens under the Underlying Instrument for such Loan Asset or such comparable definition  if “permitted liens” is not defined therein, (b) that provides that the payment obligation of the Obligor on such Loan Asset is either senior to, or pari passu with, and is not (and cannot by its terms become) subordinate in right of payment to all other Indebtedness of such Obligor, (c) for which Liens on the Related Collateral securing any other outstanding Indebtedness of the Obligor (excluding Permitted Working Capital Liens and expressly permitted Liens described in
			
	- 26-

Interest Collections and any other amounts that have been designated as Principal Collections pursuant to the terms of this Agreement.

“Pro Rata Share” means, with respect to each Lender, the percentage obtained by dividing the Commitment of such Lender (or, following the termination thereof, the outstanding principal amount of all Advances of such Lender), by the aggregate Commitments of all the Lenders (or, following the termination thereof, the aggregate Advances Outstanding).

“Proceeds” means, with respect to any property included in the Collateral, all property that is receivable or received when such property is collected, sold, liquidated, foreclosed, exchanged, or otherwise disposed of, whether such disposition is voluntary or involuntary, and includes all rights to payment with respect to such Collateral including any insurance relating thereto.

“Purchase and Sale Agreement” means that certain Purchase and Sale Agreement, dated as of the Closing Date, between the Transferor, as the seller, and the Borrower, as the purchaser, as amended, modified, supplemented, restated or replaced from time to time in accordance with the terms thereof.

“Purchase Price” means, with respect to any Loan Asset, an amount (expressed as a percentage of par) equal to the greater of (a) zero and (b) the actual price paid by the Borrower for such Loan Asset; provided that if the actual price paid by the Borrower for such Loan Asset exceeds 100% of par, the Purchase Price shall be deemed to be 100%.

“Ramp-Up Period” means the period beginning on the First Amendment Closing Date and ending on the nine (9) month anniversary thereof.

“Recipient” means the Administrative Agent and any Lender, as applicable
. “Records” means all documents relating to the Loan Assets, including books,
records and other information executed in connection with the origination or acquisition of the Loan Assets or maintained with respect to the Loan Assets and the related Obligors that the Borrower, the Transferor or the Servicer have generated, in which the Borrower has acquired an interest pursuant to the Purchase and Sale Agreement or in which the Borrower or the Transferor have otherwise obtained an interest.

“Recoveries” means, with respect to any Defaulted Loan, the proceeds from the sale of the Related Collateral, the proceeds of any related Insurance Policy, any other recoveries with respect to such Loan Asset (without duplication) or the Related Collateral, and amounts representing late fees and penalties, net of any amounts received that are required under such Loan Asset, as applicable, to be refunded to the related Obligor.

“Recurring Revenue Loan” means any Loan Asset that is structured based on a multiple of the related Obligor’s Revenue.

“Redetermination Request” means a written request of the Borrower (or the Servicer on its behalf) to the Administrative Agent for the Administrative Agent to reset the Cut-Off Date in respect of a Loan Asset (and all relevant Eligible Loan Asset information set
			
	- 42-

“Synthetic Security” means a security or swap transaction that has payments associated with either payments of interest and/or principal on a reference obligation or the  credit performance of a reference obligation.

“Target Portfolio Amount” means $154,000,000.308,000,000.

“Tax Expense Cap” means, for any Payment Date, a per annum amount equal to
$50,000.

“Taxes” means any present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), charges, assessments or fees of any nature (including interest, penalties, and additions thereto) that are imposed by any Governmental Authority.

“Term SOFR” means, for the applicable Corresponding Tenor as of the applicable Reference Time, the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.

“Termination/Reduction Notice” means each notice required to be delivered by the Borrower in respect of any termination of this Agreement or any permanent reduction of the Facility Amount, in the form of Exhibit F.

“Total Borrower Capitalization” means, on any date of determination, the sum of
(a) the Aggregate Adjusted Borrowing Value plus (b) the aggregate amount on deposit in the Principal Collection Subaccount.

“Total Leverage Ratio” means, with respect to any Loan Asset for any period, the meaning of “Total Leverage Ratio” or any comparable definition in the Underlying Instruments for each Loan Asset, and in any case that “Total Leverage Ratio” or such comparable definition is not defined in such Underlying Instruments, the ratio of (a) Indebtedness less Unrestricted Cash, in each case, as of the period of four (4) consecutive fiscal quarters most recently ended (or, if financial statements for any such quarter have not yet been delivered, for the period of  four (4) consecutive fiscal quarters for which financial statements have been delivered) on or prior to such date, or if the Obligor of such Loan Asset was organized or formed within the previous year, another applicable test period as determined by the Administrative Agent in its sole discretion, to (b) EBITDA, for the period of four (4) consecutive fiscal quarters most recently ended (or, if financial statements for any such quarter have not yet been delivered, for the period of four (4) consecutive fiscal quarters for which financial statements have been delivered) on or prior to such date, or if the Obligor of such Loan Asset was organized or formed within the previous year, another applicable test period as determined by the Administrative Agent in its sole discretion, as calculated by the Servicer in accordance with the Servicing Standard using information from and calculations consistent with the relevant compliance statements and financial reporting packages provided by the relevant Obligor as per the requirements of the related Underlying Instruments.

“Transaction Documents” means this Agreement, any Assignment and Acceptance, the Purchase and Sale Agreement, the Control Agreement, the Administrative
			
	- 54-

(o)    with respect to calculating the Debt-to-Recurring-Revenue Ratio for any
Recurring Revenue Loan, a failure to provide the information necessary to calculate the Debt-to-Recurring Revenue Ratio for any Recurring Revenue Loan.

“Volcker Rule” means Section 13 of the U.S. Bank Holding Company Act of 1956, as amended, and the applicable rules and regulations thereunder.

“Warranty Breach Event” means, as to any Loan Asset, (a) the discovery that, as of the related Cut-Off Date, such Loan Asset did not satisfy the definition of “Eligible Loan Asset” or there otherwise existed a breach of any representation or warranty relating to such Loan Asset (other than any representation and warranty that was waived by the Administrative Agent in its sole discretion in writing prior to the Cut-Off Date) or (b) the Borrower fails to satisfy Section 3.02(a)(ii) or Section 3.04(b), as applicable, with respect to such Loan Asset, in each case, if the failure of the Borrower to cure such breach, or cause the same to be cured, continues for ten (10) Business Days after the earlier to occur of the Borrower’s receipt of notice thereof from the Administrative Agent or a Responsible Officer of the Borrower becoming aware thereof.

“Warranty Breach Loan Asset” means any Loan Asset with respect to which a Warranty Breach Event has occurred.

“Weighted Average Advance Rate” means, as of any date of determination with respect to all Eligible Loan Assets included in the Aggregate Adjusted Borrowing Value, the number obtained by (a) summing the products obtained by multiplying (i) the Advance Rate of each Eligible Loan Asset by (ii) such Eligible Loan Asset’s contribution to the Aggregate Adjusted Borrowing Value and dividing (b) such sum by the Aggregate Adjusted Borrowing Value.

“Weighted Average Life” means, as of any date of determination, the number obtained by (a) for each Eligible Loan Asset (other than a Defaulted Loan), multiplying the amount of each scheduled distribution of principal to be paid after such determination date by the number of years (rounded to the nearest hundredth) from such determination date until such scheduled distribution of principal is due; (b) summing all of the products calculated pursuant to clause (a) above; and (c) dividing the sum calculated pursuant to clause (b) above by the sum of all scheduled distributions of principal due on all the Eligible Loan Assets (other than Defaulted Loans) as of such determination date.

“Weighted Average Life Test” means a test that will be satisfied on any date of determination if the Weighted Average Life of all Eligible Loan Assets as of such date is less than or equal to 6.07.0 years.

“Weighted Average Spread” means, as of any date of determination, a fraction (expressed as a percentage) obtained by (a) multiplying the Outstanding Balance of each Eligible Loan Asset (and, in the case of any Delayed Draw Loan Asset or Revolving Loan, the unfunded portion of the commitment thereunder) (other than a Defaulted Loan) included in the Collateral  as of such date by its Effective Spread, (b) summing the amounts determined pursuant to clause 
			
	- 59-

and obligations under this Agreement. After any retiring Administrative Agent’s resignation or removal hereunder as Administrative Agent, the provisions of this Article IX shall continue to inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement.

(i)Payments by the Administrative Agent. Unless specifically allocated to a
specific Lender pursuant to the terms of this Agreement, all amounts received by the Administrative Agent on behalf of the Lenders shall be paid by the Administrative Agent to the Lenders in accordance with their respective Pro Rata Shares in the applicable Advances Outstanding, or if there are no Advances Outstanding in accordance with their related Lender’s most recent Commitments, on the Business Day received by the Administrative Agent, unless such amounts are received after 12:00 noon on such Business Day, in which case the Administrative Agent shall use its reasonable efforts to pay such amounts to each Lender on  such Business Day, but, in any event, shall pay such amounts to such Lender not later than the following Business Day.

(j) Erroneous Payments.

(i) Each LenderSecuredParty hereby agrees that (x) if the Collateral Agent or the Administrative Agent notifies such LenderSecured Party that the Collateral Agent or the Administrative Agent, as applicable, has determined that any funds received by any such LenderSecured Party from the Collateral Agent or the Administrative Agent, as applicable, or any of its Affiliates were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such LenderSecured Party (whether or not known to such LenderSecured Party) (whether as a payment, prepayment or repayment of principal, interest, fees or otherwise; individually and collectively, an “Erroneous Payment”) and demands the return of such Erroneous Payment (or a portion thereof), such LenderSecured Party shall promptly, but in no event later than one (1) Business Day thereafter, return to the Collateral Agent or the Administrative Agent, as applicable, the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made, in same day funds in Dollars, and if such LenderSecured Party fails to return the amount of any such Erroneous Payment (or portion thereof) to the Collateral Agent or the Administrative Agent, as applicable, by such Business Day, such LenderSecured Party shall also pay the Collateral Agent or the Administrative Agent, as applicable, interest thereon in respect of each day after such Business Day to the date such amount is repaid to the Collateral Agent or the Administrative Agent, as applicable, in same day funds at a rate determined by the Collateral Agent or the Administrative Agent, as applicable, in accordance with banking industry rules on interbank compensation from time to time in effect and (y) to the extent permitted by applicable law, such LenderSecured Party shall not assert any right or claim to the Erroneous Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Collateral Agent or the Administrative Agent, as applicable, for the return of any Erroneous Payments received, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine. A notice of the Collateral Agent or the Administrative Agent, as applicable, to any LenderSecured Party under this clause (i) shall be conclusive, absent manifest error.

			
	-151-

(ii)Without    limiting    the    immediately    preceding    clause    (i),    each LenderSecured Party hereby further agrees that if it receives an Erroneous Payment from the Collateral Agent or the Administrative Agent (or any of their respective Affiliates) (x) that is in a different amount than, or on a different date from, that which is required to be paid to such LenderSecured Party pursuant to the terms hereof or that which is specified in a notice of payment sent by the Collateral Agent or the Administrative Agent (or any of their respective Affiliates) with respect to such Erroneous Payment (a “Erroneous Payment Notice”), (y) that was not preceded or accompanied by an Erroneous Payment Notice, or (z) that such LenderSecured Party otherwise becomes aware was transmitted, or received, in error or mistake (in whole or in part), in each case, an error has been made with respect to such Erroneous Payment, and to the extent permitted by applicable law, such LenderSecured Party shall not assert any right or claim to the Erroneous Payment, and hereby waives, any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Collateral Agent or the Administrative Agent, as applicable, for the return of any Erroneous Payments received, including without limitation waiver of any defense based on “discharge for value” or any similar doctrine. Each LenderSecured Party agrees that, in each such case, it shall promptly (and, in all events, within one (1) Business Day of its actual knowledge of such error) notify the Collateral Agent or the Administrative Agent, as applicable, of such occurrence and, upon demand from the Collateral Agent or the Administrative Agent, as applicable, it shall promptly, but in all events no later than one (1) Business Day thereafter, return to the Collateral Agent or the Administrative Agent, as applicable, the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds in Dollars, and if such LenderSecured Party fails to return the amount of any such Erroneous Payment (or portion thereof) to the Collateral Agent or the Administrative Agent, as applicable, by such Business Day, such LenderSecured  Party shall also pay the Collateral Agent or the Administrative Agent, as applicable, interest thereon in respect of each day after such Business Day to the date such amount is repaid to the Collateral Agent or the Administrative Agent, as applicable, in same day funds at a rate determined by the Collateral Agent or the Administrative Agent, as applicable, in accordance with banking industry rules on interbank compensation from time to time in effect. Each LenderSecured Party further authorizes and agrees that in the event an Erroneous Payment (or portion thereof) is not recovered from such LenderSecured Party that has received such Erroneous Payment (or portion thereof) and the Collateral Agent or the Administrative Agent, as applicable, has received amounts  that are due and owing to such LenderSecured Party which the Collateral Agent or the Administrative Agent, as applicable, is required to remit to such LenderSecured Party,  the Collateral Agent or the Administrative Agent, as applicable, may offset such amounts by the equivalent amount of Erroneous Payments received by such LenderSecured Party and, as applicable, return such amounts to the applicable payor.

(iii)     The Borrower hereby agrees that (x) in the event an Erroneous Payment (or portion thereof) is not recovered from any LenderSecured Party that has received  such Erroneous Payment (or portion thereof) for any reason, the Collateral Agent or the Administrative Agent, as applicable, shall be subrogated to all the rights of such LenderSecured Party with respect to such amount, and (y) an Erroneous Payment shall
			
	-152-

ANNEX A

Lender    Commitment

Morgan Stanley Bank, N.A.    $100,000,000200,000,000
			
	Annex A- 1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00336-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00336-of-00352.parquet"}]]