Document:

Exhibit 10.1

 

EXECUTION VERSION

 

OMNIBUS AMENDMENT NO. 7

(Ares Capital JB Funding LLC)

 

THIS OMNIBUS AMENDMENT
NO. 7, dated as of December 31, 2019 (this “Amendment”),
is entered into by and among Ares Capital JB Funding LLC, as the borrower (together with its successors and assigns in such
capacity, the “Borrower”), Ares Capital Corporation, as the servicer (together with its successors and assigns
in such capacity, the “Servicer”) and as the transferor (together with its successors and assigns in such capacity,
the “Transferor”), Sumitomo Mitsui Banking Corporation (“SMBC”), as the administrative agent
(together with its successors and assigns in such capacity, the “Administrative Agent”), as the lender (together
with its successors and assigns in such capacity, the “Lender”) and as the collateral agent (together with its
successors and assigns in such capacity, the “Collateral Agent”), and U.S. Bank National Association, as the
collateral custodian (together with its successors and assigns in such capacity, the “Collateral Custodian”)
and as the Bank (together with its successors and assigns in such capacity, the “Bank”).
Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Loan and Servicing Agreement
(as defined below). 

 

R E C I T A L S

 

WHEREAS, the
above-named parties have entered into the Loan and Servicing Agreement dated as of January 20,
2012 (such agreement as amended on September 14, 2012 by Omnibus Amendment No. 1, as amended on December 20, 2013 by Omnibus Amendment
No. 2, as amended on June 30, 2015 by Omnibus Amendment No. 3, as amended by Omnibus Amendment No. 4 on August 24, 2017, as amended
by Omnibus Amendment No. 5 on September 12, 2018, as amended by Omnibus Amendment No. 6 on September 10, 2019, and as may be further
amended, modified, supplemented or restated from time to time, the “Loan and Servicing Agreement”);

 

WHEREAS, pursuant
to and in accordance with Section 11.01 of the Loan and Servicing Agreement, the parties hereto desire to amend the Loan and Servicing
Agreement in certain respects as provided herein;

 

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 undersigned, intending to be legally bound, hereby agree as follows:

 

SECTION
1.                AMENDMENTS.

 

(a)       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 Exhibit
A hereto.

 

     

     

    

 

SECTION 2.               
LOAN AND SERVICING AGREEMENT in Full Force and Effect as Amended.

 

Except as specifically
amended hereby, all provisions of the Loan and Servicing Agreement are hereby ratified and shall remain in full force and effect.
After this Amendment becomes effective, all references to the Loan and Servicing Agreement and corresponding references thereto
or therein such as “hereof,” “herein,” or words of similar effect referring to the Loan and Servicing Agreement
shall be deemed to mean the Loan and Servicing Agreement as amended hereby. This Amendment shall not be deemed to expressly or
impliedly waive, amend or supplement any provision of the Loan and Servicing Agreement other than as expressly set forth herein,
and shall not constitute a novation of the Loan and Servicing Agreement.

 

SECTION 3.               
Representations.

 

Each of the Borrower,
the Transferor and the Servicer, severally for itself only, represents and warrants as of the date of this Amendment as follows:

 

(i)                
it is duly incorporated or organized, validly existing and in good standing under the laws of its jurisdiction of incorporation
or organization;

 

(ii)             
the execution, delivery and performance by it of this Amendment and the Loan and Servicing Agreement, as amended hereby,
are within its powers, have been duly authorized, and do not contravene (A) its corporate charter/certificate of incorporation,
by-laws, or other organizational documents, or (B) any Applicable Law;

 

(iii)           
no consent, license, permit, approval or authorization of, or registration, filing or declaration with any governmental
authority, is required in connection with the execution, delivery, performance, validity or enforceability of this Amendment and
the Loan and Servicing Agreement, as amended hereby, by or against it;

 

(iv)            
this Amendment has been duly executed and delivered by it;

 

(v)              
each of this Amendment and the Loan and Servicing Agreement, as amended hereby, constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by general
principles of equity; and

 

(vi)            
no Unmatured Event of Default, Event of Default or Servicer Termination Event has occurred and is continuing and the execution
of this Amendment by the parties hereto will not result in the occurrence of an Event of Default, Unmatured Event of Default or
Servicer Termination Event.

 

SECTION 4.               
Conditions to Effectiveness.

 

The effectiveness
of this Amendment is conditioned upon: (i) payment of the outstanding fees and disbursements of the Lender; (ii) delivery and
execution of a Joinder Supplement and Lender Fee Letter with respect to Citizens Bank, N.A. by to the parties thereto; and (iii)
delivery of executed signature pages by all parties hereto to the Administrative Agent.

 

    - 2 -

     

    

 

SECTION 5.               
POST-CLOSING OBLIGATIONS

 

Within ten (10) Business
Days after the date of this Amendment (or such later date to which the Administrative Agent may agree), the Borrower or Servicer
shall deliver to the Administrative Agent opinions of the counsel for the Borrower, the Servicer and the Transferor, in form and
substance reasonably satisfactory to the Administrative Agent, with respect to such matters as the Administrative Agent may reasonably
request.

 

SECTION 6.               
Miscellaneous.

 

(a)               
This Amendment may be executed in any number of counterparts (including by facsimile), and by the different parties
hereto on the same or separate counterparts, each of which shall be deemed to be an original instrument but all of which together
shall constitute one and the same agreement. The words “execution,” “signed,” “signature,”
“delivery,” and words of like import in or relating to this Amendment or any  document to be signed in connection
with this Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, deliveries or the
keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually
executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent
and as provided for in any applicable law, including the federal Electronic Signatures in Global and National Commerce Act, the
New York State Electronic Signatures and Records Act, or any other state laws based on the Uniform Electronic Transactions Act,
and the parties hereto consent to conduct the transactions contemplated hereunder by electronic means.

 

(b)              
The descriptive headings of the various sections of this Amendment are inserted for convenience of reference only and shall
not be deemed to affect the meaning or construction of any of the provisions hereof.

 

(c)              
This Amendment may not be amended or otherwise modified except as provided in the Loan and Servicing Agreement.

 

(d)              
The failure or unenforceability of any provision hereof shall not affect the other provisions of this Amendment or the Loan
and Servicing Agreement.

 

(e)              
Whenever the context and construction so require, all words used in the singular number herein shall be deemed to have been
used in the plural, and vice versa, and the masculine gender shall include the feminine and neuter and the neuter shall include
the masculine and feminine.

 

(f)               
This Amendment and the Loan and Servicing Agreement contain the final and complete integration of all prior expressions
by the parties hereto only with respect to the matters expressly set forth herein and shall constitute the entire agreement among
the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings. There are no
unwritten oral agreements among the parties with respect to the matters set forth herein.

 

    - 3 -

     

    

 

(g)              
The provisions of Sections 11.08 and 11.09 of the Loan and Servicing Agreement are each incorporated by reference
herein mutatis mutandis.

 

(h)              
The Administrative Agent and the Lender hereby authorize, direct and consent to the execution of this Amendment by the Collateral
Agent, the Collateral Custodian and the Bank.

 

(i)                
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 CHOICE OF LAW PROVISIONS SET FORTH IN THE LOAN AND SERVICING AGREEMENT AND SHALL BE SUBJECT
TO THE WAIVER OF JURY TRIAL AND NOTICE PROVISIONS SET FORTH IN THE LOAN AND SERVICING AGREEMENT.

 

[SIGNATURES BEGIN ON FOLLOWING PAGE]

 

    - 4 -

     

    

 

IN WITNESS WHEREOF,
the undersigned have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date
first above written.

 

	THE BORROWER:	ARES CAPITAL JB FUNDING LLC,
	 	as the Borrower
	 	 
	 	By:    	/s/ Scott Lem
	 	 	Name: Scott Lem
	 	 	Title: Authorized Signatory

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

    - 5 -

     

    

 

	THE SERVICER:	ARES CAPITAL CORPORATION,
	 	as the Servicer
	 	 
	 	By:   	/s/ Scott Lem
	 	 	Name: Scott Lem
	 	 	Title: Authorized Signatory

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

    - 6 -

     

    

 

	THE TRANSFEROR:	ARES CAPITAL CORPORATION,
	 	as the Transferor
	 	 
	 	By:   	/s/ Scott Lem
	 	 	Name: Scott Lem
	 	 	Title: Authorized Signatory

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

    - 7 -

     

    

 

	THE ADMINISTRATIVE AGENT:	SUMITOMO MITSUI BANKING CORPORATION, as the Administrative Agent
	 	 
	 	By:   	 /s/ Yoshiyuki Natsuyama
	 	 	Name: Yoshiyuki Natsuyama
	 	 	Title: Managing Director
	 	 
	THE LENDER:	SUMITOMO MITSUI BANKING CORPORATION, as the Lender
	 	 
	 	By:	 /s/ Yoshiyuki Natsuyama
	 	 	Name: Yoshiyuki Natsuyama
	 	 	Title: Managing Director
	 	 
	THE COLLATERAL AGENT:	SUMITOMO MITSUI BANKING CORPORATION, not in its individual capacity but solely as the Collateral Agent
	 	 
	 	By:	 /s/ Yoshiyuki Natsuyama
	 	 	Name: Yoshiyuki Natsuyama
	 	 	Title: Managing Director

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

    - 8 -

     

    

 

	THE COLLATERAL CUSTODIAN:	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as the Collateral Custodian
	 	 
	 	By:   	 /s/ Kenneth Brandt
	 	 	Name: Kenneth Brandt
	 	 	Title: Assistant Vice President
	 	 
	THE BANK:	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as the Bank
	 	 
	 	By:	 /s/ James H. Byrnes
	 	 	Name: James H. Byrnes
	 	 	Title: Vice President

 

    - 9 -

     

    

 

Exhibit A

 

CHANGED PAGES TO THE LOAN AND SERVICING
AGREEMENT

 

(See attached)

 

    - 10 -

     

    

 

 

 

Exhibit A

 

EXECUTION VERSION

Conformed through Omnibus
Amendment No. 67

 

Up
to U.S. $500,000,0001,000,000,000

 

LOAN AND SERVICING
AGREEMENT

 

Dated as of January
20, 2012

 

By and Among

 

ARES CAPITAL JB FUNDING
LLC,

as the Borrower

 

and

 

ARES CAPITAL CORPORATION,

as the Servicer and
as the Transferor

 

and

 

SUMITOMO MITSUI BANKING
CORPORATION,

as the Administrative
Agent and as the Collateral Agent

 

THE LENDERS FROM TIME
TO TIME PARTY HERETO,

 

and

 

U.S. BANK NATIONAL
ASSOCIATION,

as the Collateral
Custodian and as the Bank

 

    

     

     

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	ARTICLE I.	DEFINITIONS	1
	Section 1.01	Certain Defined Terms	1
	Section 1.02	Other Terms	4746
	Section 1.03	Computation of Time Periods	47
	Section 1.04	Interpretation	47
	ARTICLE II.	THE FACILITY	48
	Section 2.01	Variable Funding Note and Advances	48
	Section 2.02	Procedure for Advances	49
	Section 2.03	Determination of Yield	5251
	Section 2.04	Remittance Procedures	5251
	Section 2.05	Instructions to the Bank	5756
	Section 2.06	Borrowing Base Deficiency Payments	5756
	Section 2.07	Substitution and Sale of Loan Assets; Affiliate Transactions	5857
	Section 2.08	Payments and Computations, Etc	6564
	Section 2.09	Fees	66
	Section 2.10	Increased Costs; Capital Adequacy	66
	Section 2.11	Taxes	6867
	Section 2.12	Collateral Assignment of Agreements	70
	Section 2.13	Grant of a Security Interest	7170
	Section 2.14	Evidence of Debt	71
	Section 2.15	Survival of Representations and Warranties	71
	Section 2.16	Release of Loan Assets	7271
	Section 2.17	Treatment of Amounts Received by the Borrower	72
	Section 2.18	Prepayment; Termination	72
	Section 2.19	Extension of Stated Maturity Date and Reinvestment Period	73
	Section 2.20	Collections and Allocations	74
	Section 2.21	Reinvestment of Principal Collections	75
	Section 2.22	Sharing of Payments by Lenders	7776
	Section 2.212.23	Defaulting Lenders	77

 

    -i-

     

     

TABLE OF CONTENTS

(continued)

 

	 	 	Page

 

	ARTICLE III.	CONDITIONS PRECEDENT	7978
	Section 3.01	Conditions Precedent to Effectiveness	7978
	Section 3.02	Conditions Precedent to All Advances	8079
	Section 3.03	Advances Do Not Constitute a Waiver	82
	Section 3.04	Conditions to Transfers of Loan Assets	82
	ARTICLE IV.	REPRESENTATIONS AND WARRANTIES	8483
	Section 4.01	Representations and Warranties of the Borrower	8483
	Section 4.02	Representations and Warranties of the Borrower Relating to the Agreement and the Collateral Portfolio	9392
	Section 4.03	Representations and Warranties of the Servicer	9493
	Section 4.04	Representations and Warranties of the Collateral Agent	9897
	Section 4.05	Representations and Warranties of the Lenders	9998
	Section 4.06	Representations and Warranties of the Collateral Custodian	9998
	ARTICLE V.	GENERAL COVENANTS	10099
	Section 5.01	Affirmative Covenants of the Borrower	10099
	Section 5.02	Negative Covenants of the Borrower	106
	Section 5.03	Affirmative Covenants of the Servicer	110
	Section 5.04	Negative Covenants of the Servicer	115
	Section 5.05	Affirmative Covenants of the Collateral Agent	117116
	Section 5.06	Negative Covenants of the Collateral Agent	117116
	Section 5.07	Affirmative Covenants of the Collateral Custodian	117116
	Section 5.08	Negative Covenants of the Collateral Custodian	118117
	ARTICLE VI.	ADMINISTRATION AND SERVICING OF CONTRACTS	118117
	Section 6.01	Appointment and Designation of the Servicer	118117
	Section 6.02	Duties of the Servicer	120119
	Section 6.03	Authorization of the Servicer	122
	Section 6.04	Collection of Payments; Accounts	123122
	Section 6.05	Realization Upon Loan Assets	125124
	Section 6.06	Servicing Compensation	125
	Section 6.07	Payment of Certain Expenses by Servicer	126125

 

    -ii-

     

     

TABLE OF CONTENTS

(continued)

 

 

	 	 	Page

 

	Section 6.08	Reports to the Administrative Agent; Account Statements; Servicing Information	126125
	Section 6.09	Annual Statement as to Compliance	128127
	Section 6.10	Annual Independent Public Accountant’s Servicing Reports	128
	Section 6.11	The Servicer Not to Resign	129128
	Section 6.12	Required Sale Date	129128
	ARTICLE VII.	EVENTS OF DEFAULT	129128
	Section 7.01	Events of Default	129128
	Section 7.02	Additional Remedies of the Administrative Agent	132
	ARTICLE VIII.	INDEMNIFICATION	136135
	Section 8.01	Indemnities by the Borrower	136135
	Section 8.02	Indemnities by Servicer	139138
	Section 8.03	Legal Proceedings	141140
	Section 8.04	After-Tax Basis	142141
	ARTICLE IX.	THE ADMINISTRATIVE AGENT	142141
	Section 9.01	The Administrative Agent	142141
	ARTICLE X.	COLLATERAL AGENT	146145
	Section 10.01	Designation of Collateral Agent	146145
	Section 10.02	Duties of Collateral Agent	147146
	Section 10.03	Merger or Consolidation	149148
	Section 10.04	Collateral Agent Compensation	149148
	Section 10.05	Collateral Agent Removal	149148
	Section 10.06	Limitation on Liability	150148
	Section 10.07	Collateral Agent Resignation	151150
	ARTICLE XI.	MISCELLANEOUS	151150
	Section 11.01	Amendments and Waivers	152150
	Section 11.02	Notices, Etc	153152
	Section 11.03	No Waiver; Remedies	156
	Section 11.04	Binding Effect; Assignability; Multiple Lenders	156
	Section 11.05	Term of This Agreement	157

 

    -iii-

     

     

TABLE OF CONTENTS

(continued)

 

 

	 	 	Page

 

	Section 11.06	GOVERNING LAW; JURY WAIVER	157
	Section 11.07	USA PATRIOT Act	157
	Section 11.0711.08	Costs, Expenses and Taxes	157158
	Section 11.0811.09	No Proceedings	158
	Section 11.0911.10	Recourse Against Certain Parties	159
	Section 11.1011.11	Execution in Counterparts; Severability; Integration	159160
	Section 11.1111.12	Consent to Jurisdiction; Service of Process	160
	Section 11.1211.13	Characterization of Conveyances Pursuant to the Purchase and Sale Agreement	 
	Section 11.1311.14	Confidentiality	161162
	Section 11.1411.15	Non-Confidentiality of Tax Treatment	162163
	Section 11.1511.16	Waiver of Set Off	163
	Section 11.1611.17	Headings and Exhibits	164163
	Section 11.1711.18	Breaches of Representations, Warranties and Covenants	164
	Section 11.1811.19	Delivery of Termination Statements, Releases, etc	164
	ARTICLE XII.	COLLATERAL CUSTODIAN	164
	Section 12.01	Designation of Collateral Custodian	164 
	Section 12.02	Duties of Collateral Custodian	165164 
	Section 12.03	Merger or Consolidation	168167
	Section 12.04	Collateral Custodian Compensation	168
	Section 12.05	Collateral Custodian Removal	168
	Section 12.06	Limitation on Liability	169168
	Section 12.07	Collateral Custodian Resignation	171170
	Section 12.08	Release of Documents	171170
	Section 12.09	Return of Required Loan Documents	172171
	Section 12.10	Access to Certain Documentation and Information Regarding the Collateral Portfolio; Audits of Servicer	172171
	Section 12.11	Custodian as Agent of Collateral Agent	172

 

 

    -iv-

     

     

outstanding not to exceed the
Dollar amount set forth opposite such Lender’s name on Annex A or in the Assignment and Assumption pursuant to which
such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.

 

“Commitment
Percentage” shall have the meaning assigned to that term in Section 11.04(b).

 

“Concentration
Limits” means with respect to determining the Excess Concentration Amount as of any date of determination after giving
effect to all additions and removals of Loan Assets on such date and for purposes of this definition calculated as if all Loan
Assets are fully funded:

 

(a)   
as of the related Cut-off Date, the sum of (i) the aggregate Commitments, funded or unfunded,
under theUnfunded Exposure Amount and Aggregate Adjusted Borrowing Value of
Revolving Loan Assets and (ii) the aggregate unfunded Commitments under theUnfunded
Exposure Amount of Delayed Draw Loan Assets shall not exceed 15% of the Maximum Facility
Amountaggregate Adjusted Borrowing
Value;

 

(b)   
the
maximum aggregate Adjusted Borrowing Value of all Eligible Loan Assets (exclusive of Accreted Interest)
with respect to a single obligor may not exceed 6.0% of
the Maximum Facility Amount, except that the maximum aggregate Adjusted Borrowing Value sum of the product of (A)
the Outstanding Balance of all Eligible Loan Assets (exclusive of Accreted Interest), and
(B) the Assigned Value of all Eligible Loan Assets and (C) the Applicable Percentage
with respect to a single obligor may not exceed 5.0up
to two obligors may each be up to 7.0% of the Maximum Facility Amount, except that the maximum aggregate sum of the
product of (A) the Outstanding Balance of all Eligible Loan Assets (exclusive of Accreted Interest),
and (B) the Assigned Value of all Eligible Loan Assets and
(C) the Applicable Percentage with respect to up to two obligors may each be up to 7.58.0%
of the Maximum Facility Amount;

 

(c)   
the
aggregate Adjusted Borrowing Value of obligors that are in a single industry category, may not exceed 15% of the aggregate
Adjusted Borrowing Value, except that the aggregate Adjusted Borrowing Value of all Eligible Loan Assets of obligors (i) that are
in a single Industry Category may be up to 25% of the aggregate
Adjusted Borrowing Value and (ii) that are in a single additional Industry Category may be up to 20% of the aggregate
Adjusted Borrowing Value;

 

(d)   
the aggregate sum of the product of (A) the Applicable Percentage and (B) the
Adjusted Borrowing Value of all Eligible Loan Assets consisting of each of the First Lien Last Out Loan Assets and Second Lien
Loan Assets will not exceed, in the aggregate, 2520%
of the Adjusted Borrowing BaseValue;
provided that in no event shall Second Lien Loan Assets exceed 10% of the Borrowing Base.15%
of the aggregate Adjusted Borrowing Value; provided, further, that Second Lien Loan Assets of at most 10% of aggregate Adjusted
Borrowing Value may have EBITDA of less than $50,000,000 as of the related Cut-off
Date.

 

    -11-

     

    

 

Person, (b) a trade or business
(whether or not incorporated) under common control (within the meaning of Section 414(c) of the Code) with such Person, or (c)
a member of the same affiliated service group (within the meaning of Section 414(m) of the Code) as such Person, any corporation
described in clause (a) above or any trade or business described in clause (b) above.

 

“Eurodollar
Disruption Event” means the occurrence of any of the following: (a) SMBCany
Lender shall have notified the Administrative Agent of a determination by SMBCsuch
Lender or any of its assignees or participants that it would be contrary to law or to the directive of any central bank
or other Governmental Authority (whether or not having the force of law) to obtain Dollars in the London interbank market to fund
any Advance, (b) SMBCany
Lender shall have notified the Administrative Agent of the inability, for any reason, of SMBCsuch
Lender or any of its respective assignees or participants to determine LIBOR or One
Day Advance LIBOR, (c) SMBCany Lender
shall have notified the Administrative Agent of a determination by SMBCsuch
Lender or any of its respective assignees or participants that the rate at which deposits of Dollars are being offered
to SMBCsuch Lender or any of its respective
assignees or participants in the London interbank market does not accurately reflect the cost to SMBC
or any such Lender or
its assignee or any such participant of making, funding or maintaining
any Advance or (d) SMBCany Lender shall
have notified the Administrative Agent of the inability of SMBCsuch
Lender or any of its respective assignees or participants to obtain Dollars in the London interbank market to make,
fund or maintain any Advance.

 

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

 

“Excepted Persons” has the meaning assigned to
that term in Section 11.13(a).

 

“Excess Concentration
Amount” means, as of any date of determination, the sum of the aggregate Adjusted Borrowing Values (without giving effect
to clause (c) of the definition thereof) for all Excess Concentration Loan Assets.

 

“Excess Concentration
Loan Asset” means, as of any date of determination, with respect to any Loan Asset included in the Collateral Portfolio,
at any time in respect of which any one or more of the limitations contained in the definition of “Concentration Limits”
herein are exceeded, the portion of such Loan Asset that causes such limitations to be exceeded, to be calculated without duplication
after giving effect to any sales, purchases or substitutions of Loan Assets as of such date.

 

“Exchange
Act” means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Excluded
Affiliate” means any portfolio company of the Servicer or the Transferor, as applicable, that is not consolidated on
the financial statements of the Servicer or the Transferor, as applicable.

 

“Excluded
Amounts” means (a) any amount received in the Collection Account with respect to any Loan Asset included as part
of the Collateral Portfolio, which amount is attributable to the payment of any Tax, fee or other charge imposed by any
Governmental Authority on such Loan Asset or on any Underlying Collateral and (b) any amount received in any Controlled
Account representing (i) any amount representing a reimbursement of insurance

 

    -15-

     

    

 

limitation, because the LIBOR Page is not
available or published on a current basis and such circumstances are unlikely to be temporary; or

 

(ii)         the administrator of the LIBOR Page or a Governmental Authority having jurisdiction over the Administrative Agent has made
a public statement identifying a specific date after which LIBOR or the LIBOR Page shall no longer be made available, or used for
determining the interest rate of loans (such specific date, the “Scheduled Unavailability Date”); or

 

(iii)         after consultation with the Borrower, Loan Assets comprising a material portion of the Loan Assets held by the Borrower
currently being executed, or that include language similar to that contained in this definition, are being executed or amended
(as applicable) to incorporate or adopt a new benchmark interest rate to replace any applicable LIBOR Yield Rate;

 

then,
reasonably promptly after such determination by the Administrative Agent or receipt by the Administrative Agent of such notice,
as applicable, the Administrative Agent (in consultation with Lenders) and the Borrower
may amend this Agreement to replace such LIBOR Yield Rate with an alternate benchmark rate (including any mathematical or other
adjustments to the benchmark (if any) incorporated therein), giving due consideration to any evolving or then existing convention
for similar U.S. dollar denominated syndicated credit facilities for such alternative benchmarks (any such proposed rate, a “Successor
Rate”), together with any proposed Successor Rate Conforming Changes and any such amendment shall become effective at (A)
in the case of a determination under clause (i) above, 5:00 p.m. (New York time) on the fifth (5th) Business Day after the
Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower or (B) in the case of a determination
under clauses (ii) or (iii) above, the latest of (x) 5:00 p.m. (New York time) on the fifth (5th) Business Day after
the Administrative Agent shall have posted such proposed amendment to all Lenders and the Borrower and (y) the date agreed to by
the Administrative Agent and the Borrower, in each case, unless, prior to such time, Lenders comprising 50% or more of the Aggregate
Commitments have delivered to the Administrative Agent written notice that such Lenders do not accept such amendment; provided
that, notwithstanding anything to the contrary herein, any amendment based on a determination under clause (ii) above
shall become effective no later than the Scheduled Unavailability Date.

 

If no
Successor Rate has been determined and the circumstances under clause (i) above exist or the Scheduled Unavailability Date has
occurred (as applicable), the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, the obligation
of the Lenders to make or maintain LIBOR Advance shall be suspended, (to the extent of the affected LIBOR Advances or Interest
Periods). Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation
of LIBOR Advances (to the extent of the affected LIBOR Advances or Interest Periods) or, failing that, will be deemed to have converted
such request into a request for Base Rate Advance in the amount specified therein.

 

    -24-

     

    

 

Agreement for such Loan Asset
or such comparable definition if “permitted liens” is not defined therein, so long as such definition is reasonable
and customary) on any of the Underlying Collateral securing such Loan Asset or (ii) in the case of a First Lien Last Out Loan Asset
or a Second Lien Loan Asset, contractually or structurally subordinates such Loan Asset to any obligation (other than any first
lien loan which existed at the Cut-Off Date for such Loan Asset) by operation of a priority of payments, turnover provisions, the
transfer of assets in order to limit recourse to the related Obligor or the granting of Liens (other than “permitted liens”
as defined in the applicable Loan Agreement for such Loan Asset or such comparable definition if “permitted liens”
is not defined therein, so long as such definition is reasonable and customary) on any of the Underlying Collateral securing such
Loan Asset;

 

(e)   
substitutes, alters or releases a material portion of the Underlying Collateral securing such Loan Asset and such substitution,
alteration or release, as determined in the sole reasonable discretion of the Administrative Agent, materially and adversely affects
the value of such Loan Asset; or

 

(f)   
amends, waives, forbears, supplements or otherwise modifies (a) the meaning of “Net Senior Leverage Ratio,”
“Net Total Leverage Ratio,” “Interest Coverage Ratio” or “Permitted Liens” or any respective
comparable definitions in the Loan Agreement for such Loan Asset or (b) any term or provision of such Loan Agreement referenced
in or utilized in the calculation of any financial covenant, including, the “Net Senior Leverage Ratio,” “Net
Total Leverage Ratio,” “Interest Coverage Ratio” or “Permitted Liens” or any respective comparable
definitions for such Loan Asset, in either case, in a manner that, in the sole discretion of the Administrative Agent, materially
and adversely affects the value of such Loan Asset.

 

“Maximum
Facility Amount” means (i) initially $400,000,000 and (ii) on and after the SixthSeventh
Amendment Effective Date, the lesser of (x) the Aggregate Commitments and (y) $800,000,0001,000,000,000,
as each such amount may be reduced from time to time pursuant to Section 2.18(b); provided that at any time after
the Reinvestment Period, the Maximum Facility Amount shall mean the aggregate Advances Outstanding at such time.

 

“Moody’s” means Moody’s
Investors Service, Inc. (or its successors in interest).

 

“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which, in the case of
the Borrower, the Borrower or any ERISA Affiliate thereof, or in the case of the Servicer, the Servicer or any ERISA
Affiliate thereof, contributed or had any obligation to contribute on behalf of its employees at any time during the current
year or the preceding five years.

 

“Net
Senior Leverage Ratio” means, with respect to any Loan Asset for any Relevant Test Period, the meaning of “Net
Senior Leverage Ratio” or any comparable definition relating to first lien senior secured (or such applicable lien or applicable
level within the capital structure) indebtedness in the Required Loan Documents for each such Loan Asset, and in any case that
“Net Senior Leverage Ratio” or such comparable definition is not defined in such Required Loan Documents, the ratio
of (a) first lien senior secured (or such applicable lien or applicable level within the capital structure) Indebtedness minus
Unrestricted Cash, as of the applicable test date, to (b) EBITDA, for the applicable test period, as calculated by the Servicer

 

    -28-

     

    

 

“Required
Lenders” means, at any time, (a) SMBC, in its capacity as a Lender, and, to the extent SMBC is not a Lender, its successors
and assigns who are Affiliates and (b) Lenders that in the aggregate have Commitments representing at least 51% of the Aggregate
Commitments of all Lenders; provided that at any time two (2) or more
unaffiliated Lenders have Commitments under this Agreement, the
Required Lenders must be comprised of at least two (2) unaffiliated Lenders. The Commitment of any Defaulting Lender
shall be disregarded in determining Required Lenders at any time.

 

“Required
Loan Documents” means, for each Loan Asset, originals (except as otherwise indicated) of the following documents or instruments,
all as specified on the related Loan Asset Checklist:

 

(a)   
(i) other than in the case of a Noteless Loan Asset, the original or, if accompanied by an original “lost note”
affidavit and indemnity, a copy of, the underlying promissory note, endorsed by the Borrower in blank or to the Collateral Agent
(and evidencing an unbroken chain of endorsements from each prior holder of such promissory note to the Borrower), and (ii) in
the case of a Noteless Loan Asset (x) a copy of each transfer document or instrument relating to such Noteless Loan Asset evidencing
the assignment of such Noteless Loan Asset to the Transferor and from the Transferor to the Borrower and from the Borrower either
to the Collateral Agent or in blank, and (y) a copy of the Loan Asset Register with respect to such Noteless Loan Asset, as described
in Section 5.03(l)(ii);

 

(b)   
originals or copies of each of the following, to the extent applicable to the related Loan Asset; any related loan agreement,
credit agreement, note purchase agreement, security agreement (if separate from any mortgage), sale and servicing agreement, acquisition
agreement, subordination agreement, intercreditor agreement or similar instruments, guarantee, Insurance Policy, assumption or
substitution agreement or similar material operative document, in each case together with any amendment or modification thereto,
as set forth on the Loan Asset Checklist; and

 

(c)    with
respect to any Loan Asset originated by the Transferor and with respect to which the Transferor acts as administrative agent
(or in a comparable capacity), either (i)   copies
of the UCC-1 financing statements, if any, and any related continuation statements, each showing the Obligor as debtor and
the Collateral Agent as total assignee or showing the Obligor, as debtor and the Transferor as secured party and each with
evidence of filing thereon, or (ii) copies of any such UCC financing statements certified by the Servicer to be true and
complete copies thereof in instances where the original UCC financing statements have been sent to the appropriate public
filing office for filing, in each case as set forth in the Loan Asset Checklist.

 

“Required
Reports” means, collectively, the asset report and the Servicing Report required pursuant to Section 6.08(b),
the Servicer’s Certificate required pursuant to Section 6.08(c), the financial statements of the Servicer required
pursuant to Section 6.08(d), the Tax returns of the Borrower, the Transferor and the Servicer required pursuant to Section
6.08(e), the financial statements and valuation reports of each Obligor required pursuant to Section 6.08(f),

 

    -37-

     

    

 

(j)     
any change in the control of the Servicer that takes the form of either a merger or consolidation that does not comply with
the provisions of Section 5.04(a) of this Agreement;

 

 (k)    
 the declaration or automatic occurrence of the Facility Maturity Date;

 

(l)     
any other event which has caused, or which would reasonably be expected to cause, a Material Adverse Effect on the ability
of the Servicer to meet its obligations under the Transaction Documents to which it is a party; or

 

(m)   
Ares shall assign its rights or obligations as “Servicer” hereunder to any Person. 6.01(b).

 

“Servicer Termination Notice”
has the meaning assigned to that term in Section

 

“Servicer’s Certificate”
has the meaning assigned to that term in Section 6.08(c).

 

“Servicing Fees”
means the fee payable to the Servicer on each Payment Date in arrears in respect of each Remittance Period, which fee shall
be equal to the product of (a) 0.50%, (b) the arithmetic mean of the aggregate Outstanding Balance of all Eligible Loan
Assets and Defaulted Loan Assets on the first day and on the last day of the related Remittance Period and (c) the actual
number of days in such Remittance Period divided by 360; provided that the rate set forth in clause (a) hereof
may be increased up to 0.75% at the discretion of the Administrative Agent in the event that a Replacement Servicer (other
than SMBC or an Affiliate thereof) is appointed pursuant to Section 6.01(c).

 

“Servicing
File” means, for each Loan Asset, (a) copies of each of the Required Loan Documents and (b) any other portion of the
Loan Asset File which is not part of the Required Loan Documents.

 

“Servicing Report” has the
meaning assigned to that term in Section 6.08(b).

 

“Servicing
Standard” means, with respect to any Loan Assets included in the Collateral Portfolio, to service and administer
such Loan Assets on behalf of the Secured Parties in accordance with Applicable Law, the terms of this Agreement, the Loan
Agreements, all customary and usual servicing practices for loans like the Loan Assets and, to the extent consistent with the
foregoing, (a) if the Servicer is the originator or an Affiliate thereof, the higher of: (i) in a manner which the Servicer
believes to be consistent with the practices and procedures followed by institutional servicers of national standing relating
to assets of the nature and character of the Loan Assets, and (ii) the same care, skill, prudence and diligence with which
the Servicer services and administers loans for its own account or for the account of others, and (b)   if
the Servicer is not the originator or an Affiliate thereof, the same care, skill, prudence and diligence with which the
Servicer services and administers loans for its own account or for the account of others.

 

“Seventh
Amendment Effective Date” means December 31, 2019.

 

    -42-

     

    

 

(vii)         
 to pay the Advances Outstanding until paid in full;

 

(viii)        
to any applicable Governmental Authority, any Tax or withholding for or on account of any Tax which could result in a Lien
on any of the Collateral Portfolio;

 

(ix)           
pari passu to (a) the Collateral Agent, in payment in full of all accrued and unpaid Collateral Agent Expenses, and
(b) the Collateral Custodian and the Bank, in payment in full of all accrued and unpaid Collateral Custodian Expenses, to the extent
not paid pursuant to Section 2.04(d)(i);

 

(x)           
to the Servicer, in respect of all reasonable expenses (except allocated overhead) incurred during the immediately ended
Remittance Period in connection with the performance of its duties hereunder or paid on behalf of the Borrower, plus any outstanding
deferred reimbursement amount plus interest thereon as further set forth in Section 6.07; and

 

 (xi)           
 to the Borrower, any remaining amounts.

 

(e)   
Unfunded Exposure Account. Funds on deposit in the Unfunded Exposure Account as of any date of determination may
be withdrawn to fund draw requests of the relevant Obligors under any Revolving Loan Asset or Delayed Draw Loan Asset; provided
that, until an Event of Default has occurred, the amount withdrawn to fund such draw request shall not create any Borrowing
Base Deficiency. Any such draw request made by an Obligor, along with wiring instructions for the applicable Obligor, shall be
forwarded by the Borrower or the Servicer to the Collateral Agent (with a copy to the Administrative Agent and the Bank) in the
form of a Disbursement Request, and the Servicer shall instruct the Bank to fund such draw request in accordance with such Disbursement
Request. At any time, the Servicer (or, after delivery of Notice of Exclusive Control (as defined in the Control Agreement), the
Administrative Agent or the Collateral Agent) may cause any amounts on deposit in the Unfunded Exposure Account which exceed the
Unfunded Exposure Amount as of any date of determination to be deposited into the Principal Collection Account as Principal Collections.

 

(f)   
Insufficiency of Funds. For the sake of clarity, the parties hereby agree that if the funds on deposit in the Collection
Account are insufficient to pay any amounts due and payable on a Payment Date or otherwise, the Borrower shall nevertheless remain
responsible for, and shall pay when due, all amounts payable under this Agreement and the other Transaction Documents in accordance
with the terms of this Agreement and the other Transaction Documents.

 

SECTION
2.05          Instructions to the Bank. All instructions and directions given to the Bank by the Servicer, the Borrower,
the Administrative Agent or the Collateral Agent pursuant to Section 2.04 shall be in writing (including instructions
and directions transmitted to the Bank by telecopy or, e-mail or
SWIFT), and such written instructions and directions shall be delivered with a written certification that such
instructions and directions are in compliance with the provisions of Section 2.04 and Section 5 of the Control
Agreement. The Servicer and the Borrower shall promptly transmit to the Administrative Agent by telecopy or e-mail a copy of
all

 

    -57-

     

    

 

of such sale shall be applied as Designated Sale Proceeds to reduce Advances Outstanding in accordance with Section
2.04(b), to the extent such Principal Collections are distributed from the Principal Collection Account on a Payment
Date, or Section 2.04(c), to the extent such Principal Collections are distributed from the Principal Collection
Account on a date other than a Payment Date; or

 

(ii)              
if the Borrower does not request or requests but does not receive the prior written consent of the Administrative Agent
for any such sale, then all of the Principal Collections received by the Borrower from such sale shall be applied as Designated
Sale Proceeds to reduce Advances Outstanding in accordance with Section 2.04(b), to the extent such Principal Collections
are distributed from the Principal Collection Account on a Payment Date, or Section 2.04(c), to the extent such Principal
Collections are distributed from the Principal Collection Account on a date other than a Payment Date.

 

(d)   
Lien Release Dividend. Notwithstanding any provision contained in this Agreement to the contrary, provided no Event
of Default has occurred and no Unmatured Event of Default exists, on a Lien Release Dividend Date, the Borrower may dividend to
the Transferor a portion of those Loan Assets that were sold by the Transferor to the Borrower, or portions thereof (each, a “Lien
Release Dividend”), subject to the following terms and conditions, as certified by the Borrower and the Transferor to
the Administrative Agent (with a copy to the Collateral Agent and the Collateral Custodian):

 

(i)              
The Borrower and the Transferor shall have given the Administrative Agent, with a copy to the Collateral Agent and the Collateral
Custodian, at least five Business Days’ prior written notice requesting that the Administrative Agent consent to the effectuation
of a Lien Release Dividend, in the form of Exhibit I hereto (a “Notice and Request for Consent”), which
each such consent shall be given in the sole and absolute discretion of the Administrative Agent;

 

(ii)              
On any Lien Release Dividend Date, no more than four Lien Release Dividends shall have been made during the 12-month period
immediately preceding the proposed Lien Release Dividend Date;

 

(iii)              
No selection procedures adverse to the interests of the Administrative
Agent or the Lenders were utilized by the Borrower in the selection of those
Loan Assets that will be subject to the proposed Lien Release Dividend;

 

(iv)              
(iii)
After giving effect to the Lien Release Dividend on the Lien Release Dividend Date, (A) no Borrowing Base Deficiency, Event
of Default or Unmatured Event of Default shall exist, (B) the representations and warranties contained in Sections
4.01, 4.02 and 4.03 hereof shall continue to be correct in all material respects, except to the extent
relating to an earlier date, (C) the eligibility of any Loan Asset remaining as part of the Collateral Portfolio after the
Lien Release Dividend will be redetermined as of the Lien Release Dividend Date, (D) no claim shall have been asserted or
proceeding commenced challenging the enforceability or validity of any of the Required Loan Documents and (E) there shall
have been no material adverse change as to the Servicer or the Borrower;

 

    -62-

     

    

 

(v)              
(iv) Such Lien Release Dividend must be in compliance with Applicable
Law and may not (A) be made with the intent to hinder, delay or defraud any creditor of the Borrower or (B) leave the Borrower,
immediately after giving effect to the Lien Release Dividend, not Solvent;

 

(vi)              
(v) On or prior to the Lien Release Dividend Date, the Borrower
shall have (A) delivered to the Administrative Agent, with a copy to the Collateral Agent and the Collateral Custodian, a list
specifying all Loan Assets or portions thereof to be transferred pursuant to such Lien Release Dividend and the Administrative
Agent shall have approved the same in its sole discretion and (B) obtained all authorizations, consents and approvals required
to effectuate the Lien Release Dividend;

 

(vii)              
(vi) A portion of a Loan Asset may be transferred pursuant to a
Lien Release Dividend; provided that (A) such transfer does not have an adverse effect on the portion of such Loan Asset
remaining as a part of the Collateral Portfolio, any other aspect of the Collateral Portfolio, the Lender, the Administrative Agent
or any other Secured Party and (B) a new promissory note (other than with respect to a Noteless Loan Asset) for the portion of
the Loan Asset remaining as a part of the Collateral Portfolio has been executed, and the original thereof has been endorsed to
the Collateral Agent and delivered to the Collateral Custodian;

 

(viii)              
(vii) Each Loan Asset, or portion thereof, as applicable, shall
be transferred at a value equal to the Outstanding Balance thereof, exclusive of any accrued and unpaid Interest or Accreted Interest
thereon;

 

(ix)              
(viii) The Borrower shall deliver a Borrowing Base Certificate (including
a calculation of the Borrowing Base after giving effect to such Lien Release Dividend) to the Administrative Agent;

 

(x)                
(ix) The Borrower shall have paid in full an aggregate amount equal
to the sum of all amounts due and owing to the Administrative Agent, the Lender, the Collateral Agent or the Collateral Custodian,
as applicable, under this Agreement and the other Transaction Documents, to the extent accrued to such date (including without
limitation Breakage Fees) with respect to the Loan Assets to be transferred pursuant to such Lien Release Dividend and incurred
in connection with the transfer of such Loan Assets pursuant to such Lien Release Dividend; and

 

(xi)              
(x) The Borrower and the Servicer (on behalf of the Borrower) shall
pay the reasonable legal fees and expenses of the Administrative Agent, the Lender, the Collateral Agent and the Collateral Custodian
in connection with any Lien Release Dividend (including, but not limited to, expenses incurred in connection with the release of
the Lien of the Collateral Agent, on behalf of the Secured Parties, and any other party having an interest in the Loan Assets in
connection with such Lien Release Dividend).

 

    -63-

     

    

 

(iii)              
no selection procedures adverse to the interests of the
Administrative Agent or the LenderLenders
were utilized by the Borrower and the Servicer in the selection of the Loan Assets to be sold, repurchased or substituted;

 

(iv)              
the Borrower shall give three Business Days’ notice of such sale (other than in the case of an Optional Sale), substitution
or repurchase;

 

(v)              
the Borrower shall notify the Administrative Agent of any amount to be deposited into the Principal Collection Account in
connection with any sale, substitution or repurchase;

 

(vi)              

the representations and warranties contained in Sections 4.01, 4.02 and 4.03 hereof shall continue to
be correct in all material respects, except to the extent relating to an earlier date;

 

(vii)              
any repayment of Advances Outstanding in connection with any sale, substitution or repurchase of Loan Assets hereunder shall
comply with the requirements set forth in Section 2.18;

 

(viii)              
the Borrower and the Servicer (on behalf of the Borrower) shall agree to pay the reasonable legal fees and expenses of the
Administrative Agent, the Lender, the Collateral Agent, the Collateral Custodian and the Bank in connection with any such sale,
substitution or repurchase (including, but not limited to, expenses incurred in connection with the release of the Lien of the
Collateral Agent on behalf of the Secured Parties and any other party having an interest in the Loan Asset in connection with such
sale, substitution or repurchase); and

 

(ix)              
other than in the case of Section 2.07(e) and solely in the event that Ares or an Affiliate is no longer the Servicer
and the Facility Maturity Date has not yet occurred, the Borrower shall have consented to such sale or substitution.

 

(g) Affiliate
Transactions. Notwithstanding anything to the contrary set forth herein or in any other Transaction Document, the Transferor
(or an Affiliate thereof) shall not reacquire from the Borrower and the Borrower shall not transfer to the Transferor or to Affiliates
of the Transferor, and none of the Transferor nor any Affiliates thereof shall have a right or ability to purchase, the Loan Assets
other than (i) as not prohibited by Section 2.07(h) and (ii) in sales on an arms’ length basis and for fair market
value or at a price specified herein; provided that (x) the proceeds of such sale shall be deposited into the Principal
Collection Account to be disbursed in accordance with Section 2.04, (y) no event has occurred, or would result from such
sale, which constitutes an Event of Default and no event has occurred and is continuing, or would result from such sale, which
constitutes an Unmatured Event of Default or a Borrowing Base Deficiency; and (z) the Administrative Agent shall provide prior
written consent to such sale. For the avoidance of doubt, nothing in this clause (g) shall prohibit the Borrower from transferring
or distributing its Loan Assets to the holders of its equity or Affiliates, as applicable, in accordance with Sections 2.07(a),
(c), (d) or (e) and subject to the limitations, if applicable, of Section 2.07(h).

 

    -65-

     

    

 

Advances Outstanding shall
be given effect unless (i) sufficient funds have been remitted to pay all such amounts in full, as determined by the Administrative
Agent, in its sole discretion and (ii) no event has occurred or would result from such prepayment which would constitute an Event
of Default or an Unmatured Event of Default. The Administrative Agent shall apply amounts received from the Borrower pursuant to
this Section 2.18(a) to the payment of any Breakage Fees, to the pro rata reduction of the Advances Outstanding and
to the payment of any accrued and unpaid costs and expenses of the Administrative Agent and the Lender related to such prepayment.
Any notice relating to any repayment pursuant to this Section 2.18(a) shall be irrevocable.

 

(b)        The Borrower may, at its option, terminate this Agreement and the other Transaction Documents or reduce the Maximum Facility
Amount, as applicable, upon three Business Days’ prior written notice to the Administrative Agent and the Collateral Agent
and only so long as no Event of Default has occurred and no Unmatured Event of Default exists. Subject to the satisfaction of the
conditions set forth in the immediately preceding sentence, the Borrower may terminate this Agreement upon indefeasible payment
in full of all Advances Outstanding, all accrued and unpaid Yield, any Breakage Fees, all accrued and unpaid costs and expenses
of the Collateral Agent, the Administrative Agent and the Lender and payment of all other Obligations (other than unmatured contingent
obligations) (but without the payment of any prepayment premiums, including the Make-Whole Premium, or prepayment fees).

 

(c)        Notwithstanding anything to the contrary in Section 2.18(b), no Make- Whole Premium shall be payable by the Borrower
in the event that either (x) the Obligations are refinanced by the proceeds of any other financing of the Transferor or any of
its Affiliates by any of the Administrative Agent or any of their respective Affiliates or (y) the Administrative Agent or any
of their respective Affiliates enters into another credit facility or other financing with the Transferor or any of its Affiliates
substantially concurrently with the termination of this Agreement (provided that in either case of clause (x) or
clause (y) above, the aggregate commitments of such financing shall equal or exceed the Advances Outstanding on such date,
and the Administrative Agent or its respective Affiliates hold at least 51% of the aggregate commitments of such replacement or
other financing).

 

(d)        The Borrower hereby acknowledges and agrees that the Make-Whole Premium constitutes additional consideration for the Lender
to enter into this Agreement.

 

SECTION 2.19          Extension of Stated Maturity Date
and Reinvestment Period.

 

(a)        The
Borrower may, at any time after the first anniversary of the Sixth Amendment Effective Date, make a request to the Administrative
Agent to extend the date set forth in the definition of “Stated Maturity Date” for an additional period of one year.
The Stated Maturity Date may be extended by one year by mutual agreement among the Administrative Agent, the Required
Lenders, the Borrower and the Servicer (such extension, the “Initial Stated Maturity Extension”).
Following such Initial Stated Maturity Extension, the Borrower may, at any time thereafter, make a request to the Administrative
Agent to extend the date set forth in the definition of “Stated Maturity Date” (as revised by the Initial Stated Maturity
Extension) for an additional period of one year (such extension, the “Second Stated Maturity Extension”). The
Stated Maturity Date (as revised by the Initial Stated Maturity Extension) may be extended by

 

    -74-

     

    

 

one year upon the mutual agreement among the Administrative Agent, SMBC
(so long as SMBC is the Collateral Agent, the Lender or the Replacement Servicer)the
Lenders, the Borrower and the Servicer. The effectiveness of either the Initial Stated Maturity Extension or the
Second Stated Maturity Extension shall be conditioned upon the payment of a Stated Maturity Extension Fee (as defined in each
Lender Fee Letter) to the Administrative Agent for the Administrative Agent’s own account, in immediately available
funds. The Borrower confirms that SMBC (so long as SMBC is the Collateral Agent, the Lender
or the Replacement Servicer)any
Lender or the Administrative Agent, each in its sole and absolute discretion, without regard to the value or
performance of the Loan Assets or any other factor, may elect not to extend the Stated Maturity Date.

 

(b)   
The Borrower may make a request to the Administrative Agent to extend the date set forth in clause (a) of the definition
of “Reinvestment Period” for an additional period of one year. Such date may be extended by one year by mutual agreement
among the Administrative Agent, SMBC (so long as SMBC is the Collateral Agent, the Lender or the
Replacement Servicer),the
Lenders, the Borrower and the Servicer (such extension, the “Initial Reinvestment Period Extension”).
Following such Initial Reinvestment Period Extension, the Borrower may, at any time thereafter, make a request to the Administrative
Agent to extend the date set forth in clause (a) of the definition of “Reinvestment Period” (as revised by the
Initial Reinvestment Period Extension) for an additional period of one year. Such date may be extended by one year upon the mutual
agreement among the Administrative Agent, SMBC (so long as SMBC is the Collateral Agent, the Lender
or the Replacement Servicer)the
Lenders, the Borrower and the Servicer (such extension, the “Second Reinvestment Period Extension”).
The effectiveness of either the Initial Reinvestment Period Extension or the Second Reinvestment Period Extension shall be conditioned
upon the payment of a Reinvestment Period Extension Fee (as defined in each Lender Fee Letter) to the Administrative Agent for
the Administrative Agent’s own account, in immediately available funds. The Borrower confirms that SMBC
(so long as SMBC is the Collateral Agent, the Lender or the Replacement Servicer)any
Lender or the Administrative Agent, each in its sole and absolute discretion, without regard to the value or performance
of the Loan Assets or any other factor, may elect not to extend the date set forth in clause (a) of the definition of “Reinvestment
Period”.

 

SECTION 2.20          
Collections and Allocations.

 

(a)    
The Servicer shall promptly identify any collections received as being on account of Interest Collections, Principal Collections
or other Available Collections and shall transfer, or cause to be transferred, all Available Collections received directly by it
to the Collection Account by the close of business on the second Business Day after such Collections are received. Upon the transfer
of Available Collections to the Collection Account, the Servicer shall segregate Principal Collections and Interest Collections
and transfer the same to the Principal Collection Account and the Interest Collection Account, respectively. The Servicer shall
further include a statement as to the amount of Principal Collections and Interest Collections on deposit in the Principal Collection
Account and the Interest Collection Account, as well as the amount on deposit in the Unfunded Exposure Account, on each Reporting
Date in the Servicing Report delivered pursuant to Section 6.08(b).

 

    -75-

     

     

shall have delivered
to the Administrative Agent and the Collateral Agent all documents (or copies thereof) evidencing each such assignment or novation
no later than 1:00 p.m. one Business Day prior to the related Advance Date and (B) the Borrower shall have delivered to the Collateral
Custodian (with a copy to the Administrative Agent), no later than 1:00 p.m. one Business Day prior to the related Advance Date,
a faxed or e-mailed copy of the duly executed original promissory notes of the Loan Assets (and, in the case of any Noteless Loan
Asset, a fully executed assignment agreement); provided that, notwithstanding the foregoing, the Borrower shall cause the
Loan Asset Checklist and the Required Loan Documents to be in the possession of the Collateral Custodian within five Business Days
of any related Advance Date as to any Loan Assets;

 

(iii)    
the representations and warranties contained in Sections 4.01,4.02 and 4.03 are true and correct in all material
respects, and, in the case of any Advance made for the purpose of purchasing Eligible Loan Assets, there exists no breach of any
covenant contained in Sections 5.01, 5.02, 5.03 and 5.04 before and after giving effect to the Advance
to take place on such Advance Date and to the application of proceeds therefrom, on and as of such day as though made on and as
of such date (other than any representation and warranty that is made as of a specific date);

 

(iv)   
on and as of such Advance Date, after giving effect to such Advance and the addition to the Collateral Portfolio of the
Eligible Loan Assets being acquired by the Borrower using the proceeds of such Advance (except with respect to an Advance made
as contemplated by Section 2.02(f)), there shall exist no Borrowing Base Deficiency; provided that in the case of
an Advance made as contemplated by Section 2.02(f), nothing set forth in this Section 3.02(a)(iv) shall relieve the
Borrower of its obligations elsewhere hereunder to cure any Borrowing Base Deficiency that exists prior to such Advance or results
therefrom;

 

(v)     except
with respect to an Advance made as contemplated by Section 2.02(f), no Event of Default has occurred, or would result from
such Advance, and no Unmatured Event of Default or Borrowing Base Deficiency exists or would result from such Advance; provided
that, in the case of an Advance made as contemplated by Section 2.02(f), nothing set forth in this Section 3.02(a)(v)
shall relieve the Borrower of its obligations elsewhere hereunder to cure any Borrowing Base Deficiency that exists prior to such
Advance or results therefrom;

 

(vi)   
no event has occurred and is continuing, or would result from such Advance, which constitutes a Servicer Termination Event
or any event which, if it continues uncured, will, with notice or lapse of time, constitute a Servicer Termination Event;

 

(vii)  
since the SixthSeventh
Amendment Effective Date, no material adverse change has occurred in the ability of the Servicer, Transferor or the Borrower to
perform its obligations under any Transaction Document;

 

    -82-

     

     

(f)     
no Event of Default has occurred, or would result from such transfer to the Borrower pursuant to the terms of the Purchase
and Sale Agreement, and no Unmatured Event of Default exists, or would result from such transfer (other than, with respect to any
transfer of an Eligible Loan Asset necessary to cure a Borrowing Base Deficiency in accordance with Sections 2.06 or 2.07,
an Unmatured Event of Default arising solely pursuant to such Borrowing Base Deficiency); and

 

(g)   
the representations and warranties contained in Sections 4.01, 4.02 and 4.03 are true and correct in all material
respects, and there exists no breach of any covenant contained in Sections 5.01, 5.02, 5.03 and 5.04
before and after giving effect to the transfer of each Eligible Loan Asset to the Borrower pursuant to the terms of the Purchase
and Sale Agreement to take place on such Cut-Off Date, on and as of such day as though made on and as of such date (other than
any representation and warranty that is made as of a specific date).

 

ARTICLE IV.

 

REPRESENTATIONS AND
WARRANTIES

 

SECTION
4.01          Representations and Warranties of the Borrower. The Borrower
hereby represents and warrants, as of the SixthSeventh
Amendment Effective Date, as of each applicable Cut-Off Date, as of each applicable Advance Date, as of each Payment
Date and as of each other date provided under this Agreement or the other Transaction Documents on which such representations and
warranties are required to be (or deemed to be) made (unless a specific date is specified below):

 

(a)   
Organization, Good Standing and Due Qualification. The Borrower is a limited liability company duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization (subject to Section 5.02(q)) and has
the power and all licenses necessary to own its assets and to transact the business in which it is engaged and is duly qualified
and in good standing under the laws of each jurisdiction where the transaction of such business or its ownership of the Loan Assets
and the Collateral Portfolio requires such qualification. Without limiting the generality of the foregoing and for the avoidance
of doubt, all consents or approvals required under the JPM Credit Documents in connection with the execution, delivery or performance
by the Borrower of this Agreement and the other Transaction Documents, including, without limitation, for the transfer of the Collateral
Portfolio to the Borrower and the pledge of a first priority perfected security interest in such Collateral Portfolio by the Borrower
to the Collateral Agent have been obtained.

 

(b)   
Power and Authority; Due Authorization; Execution and Delivery. The Borrower has the necessary power, authority and
legal right to make, deliver and perform this Agreement and each of the Transaction Documents to which it is a party and all of
the transactions contemplated hereby and thereby, and has taken all necessary action to authorize the execution, delivery and performance
of this Agreement and each of the Transaction Documents to which it is a party, and to grant to the Collateral Agent, for the benefit
of the Secured Parties, a first priority perfected security interest in the Collateral Portfolio on the terms and conditions of
this Agreement, subject only to Permitted Liens.

 

    -85-

     

     

the applicable Cut-Off
Date for the Loan Asset related to such Underlying Collateral, none of the Borrower, the Transferor nor the Servicer has received
any written or verbal notice of, or inquiry from any Governmental Authority regarding, any violation, alleged violation, non-compliance,
liability or potential liability regarding environmental matters or compliance with Environmental Laws with regard to any of the
Underlying Collateral, nor does any such Person have knowledge or reason to believe that any such notice will be received or is
being threatened.

 

(ii)
Anti-Corruption Laws; Sanctions.

 

(i)    
Neither the Borrower nor any director or officer, employee, or to the knowledge of the Borrower, any agent, Affiliate or
representative of the Borrower is, or is directly owned or controlled (or, to the knowledge of the Borrower, indirectly owned or
controlled) by any individual or entity that is, (i) currently the subject or target of any Sanctions, (ii) a country, territory,
organization, Person or entity named on OFAC’s List of Specially Designated nationals, HMT’s Consolidated List of Financial
Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant Sanctions authority; (iii) a
Person that resides, is organized in, or has a place of business in a country or territory named on such lists, that is a Designated
Jurisdiction, which is designated as a “Non-Cooperative Jurisdiction” by the Financial Action Task Force on Money Laundering,
or whose subscription funds are transferred from or through such a jurisdiction; (iv) a “Foreign Shell Bank” within
the meaning of the USA PATRIOT Act, i.e., a foreign bank that does not have a physical presence in any country and that
is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (v) a Person
or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of the Treasury
under Sections 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns.

 

(ii)   
The Borrower has conducted its business in material compliance with (x)
the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar applicable anti-corruption
legislation in other jurisdictions. and
(y) all
laws of any applicable jurisdiction where the Borrower is located or doing business concerning or relating to anti-money laundering
and anti-terrorism financing, including the USA PATRIOT Act, the Money Laundering Control Act of 1986 and other legislation, which
legislative framework is commonly referred to as the “Bank Secrecy Act.”

 

(iii)   
As of the SixthSeventh
Amendment Effective Date, the information included in the Beneficial Ownership Certification, if applicable, is true and correct
in all respects.

 

(jj)
Confirmation from Transferor. The Borrower has received in writing from the Transferor confirmation that the Transferor
will not cause the Borrower to file a voluntary bankruptcy petition under the Bankruptcy Code.

 

(kk)
Accuracy of Representations and Warranties. Each representation or warranty by the Borrower contained herein, or in any
certificate or other document furnished by

 

    -91-

     

     

Agreement
(acting at the direction of the Administrative Agent), the securities intermediary has agreed to only follow the entitlement orders
and instructions of the Collateral Agent, on behalf of the Secured Parties, including with respect to the investment of cash in
Permitted Investments;

 

(iv)   
all Controlled Accounts constitute “securities accounts” or “deposit accounts” as defined in the
applicable UCC;

 

(v)   
with respect to any Controlled Account which constitutes a “deposit account” as defined in the applicable UCC,
the Borrower, the Bank and the Collateral Agent, on behalf of the Secured Parties, have entered into an account control agreement
which permits the Collateral Agent on behalf of the Secured Parties to direct disposition of the funds in such deposit account;

 

(vi)   
the Borrower owns and has good and marketable title to (or with respect to assets securing any Loan Assets, a valid security
interest in) the Collateral Portfolio free and clear of any Lien (other than Permitted Liens) of any Person;

 

(vii)   
the Borrower has received all consents and approvals required by the terms of any Loan Asset to the granting of a security
interest in the Loan Assets hereunder to the Collateral Agent, on behalf of the Secured Parties;

 

(viii)  
the Borrower has caused the filing of all appropriate UCC financing statements in the proper filing office in the appropriate
jurisdictions under Applicable Law in order to perfect the security interest in the Collateral Portfolio and that portion of the
Loan Assets in which a security interest may be perfected by any filing of a UCC financing statement granted to the Collateral
Agent, on behalf of the Secured Parties, under this Agreement; provided that filings in respect of real property shall not
be required;

 

(ix)   
except as otherwise expressly permitted by the terms of this Agreement and other than the security interest granted to the
Collateral Agent, on behalf of the Secured Parties, pursuant to this Agreement, the Borrower has not pledged, assigned, sold, granted
a security interest in or otherwise conveyed any of the Collateral Portfolio. The Borrower has not authorized the filing of and
is not aware of any UCC financing statements against the Borrower that include a description of collateral covering the Collateral
Portfolio other than any UCC financing statement (A) relating to the security interests granted to the Borrower under the Purchase
and Sale Agreement, or (B) relating to the closing of a Permitted Securitization
contemplated by Section 2.07(c) or (C) that has been terminated and/or fully and validly assigned to the Collateral Agent on or
prior to the Closing Date. The Borrower is not aware of the filing of any judgment or Tax lien filings against the Borrower;

 

(x)   
all original executed copies of each underlying promissory note or copies of each Loan Asset Register, as applicable, that
constitute or evidence each Loan Asset have been, or subject to the delivery requirements contained herein, will be delivered to
the Collateral Custodian;

 

    -93-

     

     

country
and that is not affiliated with a bank that has a physical presence and an acceptable level of regulation and supervision; or (v)
a Person or entity that resides in or is organized under the laws of a jurisdiction designated by the United States Secretary of
the Treasury under Sections 311 or 312 of the USA PATRIOT Act as warranting special measures due to money laundering concerns.

 

(ii)
The Servicer has conducted its business
in material compliance with (x) the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar
applicable anti-corruption legislation in other jurisdictions and (y) all laws of any applicable jurisdiction where the Servicer
is located or doing business concerning or relating to anti-money laundering and anti-terrorism financing, including the USA PATRIOT
Act, the Money Laundering Control Act of 1986 and other legislation, which legislative framework is commonly referred to as the
“Bank Secrecy Act.”

 

(r)   
Environmental. With respect to each item of Underlying Collateral, to the actual knowledge of a Responsible Officer
of the Servicer: (a) the related Obligor’s operations comply in all material respects with all applicable Environmental Laws;
(b) none of the related Obligor’s operations is the subject of a Federal or state investigation evaluating whether any remedial
action, involving expenditures, is needed to respond to a release of any Hazardous Materials into the environment; and (c) the
related Obligor does not have any material contingent liability in connection with any release of any Hazardous Materials into
the environment. The Servicer has not received any written or verbal notice of, or inquiry from any Governmental Authority regarding,
any violation, alleged violation, non-compliance, liability or potential liability regarding environmental matters or compliance
with Environmental Laws with regard to any of the Underlying Collateral, nor does the Servicer have knowledge or reason to believe
that any such notice will be received or is being threatened.

 

(s)   
No Injunctions. No injunction, writ, restraining order or other order of any nature adversely affects the Servicer’s
performance of its obligations under this Agreement or any Transaction Document to which the Servicer is a party.

 

(t)   
Allocation of Charges. There is not any agreement or understanding between the Servicer and the Borrower (other than
as expressly set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations
to make payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges; provided that it
is understood and acknowledged that the Borrower will be consolidated with or treated as a part of the Servicer for Tax purposes.

 

(u)   
Servicer Termination Event. No event has occurred which constitutes a Servicer Termination Event (other than any
Servicer Termination Event which has previously been disclosed to the Administrative Agent as such).

 

(v)   
Broker-Dealer. The Servicer is not a broker-dealer or subject to the Securities Investor Protection Act of 1970,
as amended.

 

    -99-

     

     

appropriate filing offices, (including
any amendments thereto or assignments thereof) and filing continuation statements, amendments or assignments with respect thereto
in such filing offices, (including any amendments thereto or assignments thereof) and (b) executing or causing to be executed such
other instruments or notices as may be necessary or appropriate, (iii) (at the expense of the Servicer, on behalf of the Borrower)
take all action necessary to cause a valid, subsisting and enforceable first priority perfected security interest, subject only
to Permitted Liens, to exist in favor of the Collateral Agent (for the benefit of the Secured Parties) in the Borrower’s
interests in all of the Collateral Portfolio which may be transferred to the Borrower pursuant to the terms of the Purchase and
Sale Agreement, including the filing of a UCC financing statement in the applicable jurisdiction adequately describing the Collateral
Portfolio (which may include an “all asset” filing), and naming the Borrower as debtor and the Collateral Agent as
the secured party, and filing continuation statements, amendments or assignments with respect thereto in such filing offices, (including
any amendments thereto or assignments thereof), (iv) permit the Administrative Agent or its agents or representatives to visit
the offices of the Borrower during normal office hours and upon reasonable advance notice examine and make copies of all documents,
books, records and other information concerning the Collateral Portfolio, including without limitation the Records, and discuss
matters related thereto with any of the officers or employees of the Borrower having knowledge of such matters, and (v) take all
additional action that the Administrative Agent or the Collateral Agent may reasonably request to perfect, protect and more fully
evidence the respective first priority perfected security interests of the Collateral Agent, on behalf of the Secured Parties,
in the Collateral Portfolio, or to enable the Administrative Agent or the Collateral Agent to exercise or enforce any of their
respective rights hereunder.

 

(u)    Liens.
The Borrower will promptly notify the Administrative Agent of the existence of any Lien on the Collateral Portfolio (other than
Permitted Liens) and the Borrower shall defend the right, title and interest of the Collateral Agent, for the benefit of the Secured
Parties, in, to and under the Collateral Portfolio against all claims of third parties.

 

(v)     Other
Documents. At any time from time to time upon prior written request of the Administrative Agent, at the sole expense of the
Borrower, the Borrower will promptly and duly execute and deliver such further instruments and documents and take such further
actions as the Administrative Agent may reasonably request for the purposes of obtaining or preserving the full benefits of this
Agreement including the first priority security interest (subject only to Permitted Liens) granted hereunder and of the rights
and powers herein granted (including, among other things, authorizing the filing of such UCC financing statements as the Administrative
Agent may request).

 

(w)   
Compliance with Law. The Borrower shall at all times comply in all material respects with,
and ensure that policies and procedures are maintained that are reasonably designed to ensure compliance with, all Applicable
Law applicable to Borrower or any of its assets (including without limitation Environmental Laws, and all federal securities laws),
and Borrower shall do or cause to be done all things necessary to preserve and maintain in full force and effect its legal existence,
and all licenses material to its business.

 

    -106-

     

     

(x)    
Sanctions. Maintain policies and procedures reasonably designed to ensure compliance with Sanctions.

 

(y)    Anti-Corruption
Laws. Conduct its businessesThe
Borrower shall at all times conduct its business in compliance with,
and ensure that policies and procedures are maintained that are reasonably designed to ensure compliance with,
(x) the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar applicable anti-
corruption legislation in other jurisdictions in which the Borrower is located or doing business.
and (y) all laws of
any applicable jurisdiction in which the Borrower is located or doing business concerning or relating to anti-money laundering
and anti-terrorism financing, including the USA PATRIOT Act, the Money Laundering Control Act of 1986 and other legislation, which
legislative framework is commonly referred to as the “Bank Secrecy Act.”

 

(z)    
Proper Records. The Borrower shall at all times keep proper books of records and accounts in which full, true and
correct entries shall be made of its transactions in accordance with GAAP.

 

(aa) Satisfaction
of Obligations. The Borrower shall pay, discharge or otherwise satisfy at or before maturity or before they become delinquent,
as the case may be, all its material obligations of whatever nature, except where the amount or validity thereof is currently being
contested in good faith by appropriate proceedings and reserves with respect thereto have been provided on the books of the Borrower.

 

(bb) Performance of
Covenants. The Borrower shall observe, perform and satisfy all the material terms, provisions, covenants and conditions required
to be observed, performed or satisfied by it, and shall pay when due all costs, fees and expenses required to be paid by it, under
the Transaction Documents. The Borrower shall pay and discharge all Taxes, levies, liens and other charges on it or its assets
and on the Collateral Portfolio that, in each case, in any manner would create any Lien or charge upon the Collateral Portfolio,
except for any such Taxes as are being appropriately contested in good faith by appropriate proceedings diligently conducted and
with respect to which adequate reserves have been provided in accordance with GAAP.

 

(cc) Tax Treatment.
The Borrower, the Transferor and the Lender shall treat the Advances advanced hereunder as indebtedness of the Borrower (or, so
long as the Borrower is treated as a disregarded entity for U.S. federal income tax purposes, as indebtedness of the entity of
which it is considered to be a part) for U.S. federal income tax purposes and to file any and all Tax forms in a manner consistent
therewith.

 

(dd) Maintenance of
Records. The Borrower will maintain records with respect to the Collateral Portfolio, including without limitation the Records,
and the conduct and operation of its business with no less a degree of prudence than if the Collateral Portfolio were held by the
Borrower for its own account and will furnish the Administrative Agent, upon the reasonable request by the Administrative Agent,
information with respect to the Collateral Portfolio and the conduct and operation of its business.

 

    -107-

     

     

(f)   
Organizational Documents. The Borrower shall not amend, modify, waive or terminate any of the organizational or operational
documents of the Borrower without the prior written consent of the Administrative Agent.

 

(g)   
Merger, Acquisitions, Sales, etc. The Borrower shall not change its organizational structure, enter into any transaction
of merger or consolidation or amalgamation, or asset sale (other than pursuant to Section 2.07), or liquidate, wind up or
dissolve itself (or suffer any liquidation, winding up or dissolution) without the prior written consent of the Administrative
Agent.

 

(h)   
Use of Proceeds. The Borrower shall not use the proceeds of any Advance other than (x) to finance the purchase by
the Borrower from the Transferor on a “true sale” basis, of Collateral Portfolio pursuant to the terms of the Purchase
and Sale Agreement, (y) to fund the Unfunded Exposure Account in order to establish reserves for unfunded commitments of Revolving
Loan Assets and Delayed Draw Loan Assets included in the Collateral Portfolio or (z) to distribute such proceeds to the Transferor
(so long as such distribution is permitted pursuant to Section 5.02(m)). For the avoidance of doubt, the Borrower shall
not use the proceeds of any Advance in a manner that would cause such credit extension to become a “covered transaction”
as defined in Section 23A of the Federal Reserve Act (12 U.S.C. § 371c) and the Federal Reserve Board’s Regulation W
(12 C.F.R. Part 223), including any transaction where the proceeds of any Advance are used for the benefit of, or transferred to,
an Affiliate of a Lender.

 

(i)   
Sanctions. Directly or, to the knowledge of the Borrower, indirectly, use the proceeds of any Advance hereunder,
or lend, contribute, or otherwise make available such proceeds to any subsidiary, joint venture partner, or other Person (a) for
the purpose of funding any unlawful activities or business of or with a Sanctioned Person or in any Designated Jurisdiction, or
(b) in any manner that would be prohibited by Sanctions or would otherwise cause a Lender to be in breach of any Sanctions.

 

(j)   
Anti-Corruption Laws. Directly or indirectly use the proceeds of any Advance for any purpose which would breach
the provisions
of (x) the
United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act of 2010,
orand
other similar applicable
anti- corruption legislation in other jurisdictions in which the Borrower or the Servicer is located or doing business.
and
(y) all laws of any applicable jurisdiction in which the Borrower or the Servicer is located or doing business concerning or relating
to anti-money laundering and anti- terrorism financing, including the USA PATRIOT Act, the Money Laundering Control Act of 1986
and other legislation, which legislative framework is commonly referred to as the “Bank Secrecy Act.”

 

(k)   
Limited Assets. The Borrower shall not hold or own any assets that are not part of the Collateral Portfolio other
than with respect to any assets released from the Lien of the Collateral Agent hereunder following (i) a substitution effected
in accordance with Section 2.07(a) (so long as a Substitute Eligible Loan Asset has been transferred to the Borrower pursuant
to the terms of the Purchase and Sale Agreement in connection therewith), (ii) an Optional Sale in connection with a Permitted
Refinancing effected in accordance with Section 2.07(c), (iii) a Lien Release Dividend effected in accordance with Section
2.07(d); (iv) a

 

    -110-

     

     

(r)    
Taxable Mortgage Pool Matters. The sum of the Outstanding Balances of all Loan Assets owned by the Borrower and that
are principally secured by an interest in real property (within the meaning of Treasury Regulation Section 301.7701(i)-1(d)(3))
shall not at any time exceed 35% of the aggregate Outstanding Balance of all Loan Assets.

 

(s)   
Change of Jurisdiction, Location, Names or Location of Loan Asset Files. The Borrower shall not change the jurisdiction
of its formation, make any change to its corporate name or use any tradenames, fictitious names, assumed names, “doing business
as” names or other names (other than those listed on Schedule II hereto, as such schedule may be revised from time
to time to reflect name changes and name usage permitted under the terms of this Section 5.02(q) after compliance with all
terms and conditions of this Section 5.02(q) related thereto) unless, prior to the effective date of any such change in
the jurisdiction of its formation, name change or use, the Borrower receives prior written consent from the Administrative Agent
of such change and delivers to the Administrative Agent such UCC financing statements as the Administrative Agent may request to
reflect such name change or use, together with such Opinions of Counsel and other documents and instruments as the Administrative
Agent may request in connection therewith. The Borrower will not change the location of its chief executive office unless prior
to the effective date of any such change of location, the Borrower notifies the Administrative Agent of such change of location
in writing. Subject to Section 2.16, the Borrower will not move, or consent to the Collateral Custodian or the Servicer
moving, the Loan Asset Files from the location thereof on the initial Advance Date, unless the Servicer shall have provided the
Administrative Agent with 30 days’ written notice of such move and such Opinions of Counsel and other documents and instruments
as the Administrative Agent may reasonably request in connection therewith and shall have taken all actions required under the
UCC of each relevant jurisdiction in order to continue the first priority perfected security interest of the Collateral Agent,
for the benefit of the Secured Parties, in the Collateral Portfolio.

 

(t)     Allocation
of Charges. There will not be any agreement or understanding between the Servicer and the Borrower (other than as expressly
set forth herein or as consented to by the Administrative Agent), providing for the allocation or sharing of obligations to make
payments or otherwise in respect of any Taxes, fees, assessments or other governmental charges; provided that it is understood
and acknowledged that the Borrower will be consolidated with or treated as a part of the Servicer for Tax purposes.

 

(u)   
Deposits to Collection Account. The Borrower will not deposit or otherwise credit, or cause to be so deposited or
credited, to the Collection Account cash or cash proceeds other than any proceeds realized from Permitted Investments and any Available
Collections in respect of the Collateral Portfolio. The Borrower shall take commercially reasonable steps to ensure that only funds
constituting payments and collections relating to Loan Assets shall be deposited into the Collection Account.

 

(v)   
Unfunded Exposure Amount. The Borrower will not permit the Unfunded Exposure Amount to exceed 2015%
of the Maximum Facility Amount (without taking into account the proviso set forth in the definition thereof).

 

 

    -112-

     

     

Section 2.04, any claims of the
Servicer against the Borrower in respect of any deferred reimbursement amount or otherwise shall be extinguished and shall not
thereafter revive.

 

SECTION 6.08          Reports
to the Administrative Agent; Account Statements; Servicing Information.

 

(a)   
Notice of Borrowing or Conversion. Not later than 1:00 p.m. on the (x) first Business Day or (y) third Business Day, as applicable
before (i) the Advance Date or LIBOR Conversion Date, as applicable, for a LIBOR Advance, (ii) the Base Rate Conversion Date for
a Base Rate Advance and (iii) each reduction of Advances Outstanding pursuant to Section 2.18 and not later than 1:00 p.m.
on the first Business Day before the Advance Date for an Advance pursuant to Section 2.02(b) that is a Base Rate Advance
or a One Day Advance, the Borrower (or the Servicer on its behalf) will provide a Notice of Borrowing, a Conversion Notice or a
Notice of Reduction, as applicable, and a Borrowing Base Certificate, each updated as of such date, to the Administrative Agent
and each Lender
(with a copy to the Collateral Agent).

 

(b)   
Servicing Report. (i) Within five (5) Business Days after the end of each calendar month, the Servicer will provide
to the Borrower, the Administrative Agent,
each Lender and the Collateral Agent a monthly statement including the following information, as of the last Business
Day of the preceding calendar month, (A) the current list of Obligors and the Outstanding Balance of each Loan Asset with respect
to each such Obligor, (B) the current rating(s) of the Loan Assets by Moody’s or S&P, or both, if applicable, (C) a list
of all Defaulted Loan Assets, (D) an accounting of collections with respect to the Loan Assets and the cash balance on deposit
in the Collection Account, (E) the aggregate Outstanding Balance of all Loan Assets as of such day, (F) the Advances Outstanding
as of such day and (G) the difference between the aggregate Outstanding Balance and the Advances Outstanding as of such day and

(ii) 
on each Reporting Date, the Servicer will provide to the Borrower, the Administrative Agent and the Collateral Agent, a
monthly statement including (A) a Borrowing Base Certificate calculated as of the most recent Determination Date, (B) a summary
prepared with respect to each Obligor and with respect to each Loan Asset for such Obligor prepared as of the most recent Determination
Date that will be required to set forth (x) updated on a quarterly basis, covenant compliance for each such Loan Asset for the
most recently ended relevant test period for such Loan Asset in the related Loan Agreement based on information received by the
Servicer, (y) whether or not each such Loan Asset shall have become subject to a material amendment, restatement, supplement, waiver
or other modification and whether such amendment, restatement, supplement, waiver or other modification is a Material Modification
and (z) the Fair Market Value and/or (if applicable) the purchase price of each such Loan Asset paid by the Servicer, (C) all scheduled
and unscheduled repayments with respect to any Loan Assets during the related calendar month and (D) amounts to be remitted pursuant
to Section 2.04 to the applicable parties (which shall include any applicable wiring instructions of the parties receiving
payment) (such monthly statement set forth in this clause (ii), a “Servicing Report”), with respect to the related
calendar month signed by a Responsible Officer of the Servicer and the Borrower and substantially in the form of Exhibit J.

 

(c)   
Servicer’s Certificate. Together with each Servicing Report, the Servicer shall submit to the Administrative
Agent, each Lender
and the Collateral Agent a certificate substantially in the form of Exhibit K (a “Servicer’s Certificate”),
signed by a Responsible

 

    -129-

     

     

Officer of the Servicer,
which shall include a certification by such Responsible Officer that no Event of Default or Unmatured Event of Default has occurred
and, in the event that an Event of Default or Unmatured Event of Default has occurred, shall set forth the details of such event
and the action that the Servicer proposes to take with respect thereto.

 

(d)   
Financial Statements. The Servicer will submit to the Administrative Agent,
each Lender and the Collateral Agent, (i) within 45 days after the end of each of its fiscal quarters (excluding the
fiscal quarter ending on the date specified in clause (ii)), commencing March 31, 2012, consolidated unaudited financial
statements of the Servicer for the most recent fiscal quarter, and (ii) within 90 days after the end of each fiscal year, commencing
with the fiscal year ended December 31, 2011, consolidated audited financial statements of the Servicer, audited by a firm of nationally
recognized independent public accountants, as of the end of such fiscal year. The Servicer shall be deemed to have satisfied the
requirements of this Section 6.08(d) if the reports, documents and information of the types otherwise so required are publicly
available when required to be filed on EDGAR at the www.sec.gov website or any successor service provided by the Securities and
Exchange Commission.

 

(e)   
Tax Returns. Upon demand of the Administrative Agent, the Servicer shall deliver promptly to the Administrative Agent,
each Lender and the Collateral Agent true, correct and complete copies of all federal, state and local Tax returns and
reports filed by the Borrower, the Transferor and the Servicer, or in which the Borrower, the Transferor or Servicer was included
on a consolidated or combined basis (excluding sales, use and similar Taxes).

 

(f)   
Obligor Financial Statements; Valuation Reports; Other Reports. The Servicer will deliver to the Administrative Agent
and the Collateral Agent, with respect to each Obligor, (i) to the extent received by the Borrower and/or the Servicer pursuant
to the Loan Agreement, the complete financial reporting package with respect to such Obligor and with respect to each Loan Asset
for such Obligor (including any covenant compliance certificates with respect to such Obligor and with respect to each Loan Asset
for such Obligor) provided to the Borrower and/or the Servicer either monthly or quarterly, as the case may be, by such Obligor,
which delivery shall be made within 10 days after Servicer’s or Borrower’s receipt thereof, (ii) a quarterly update
to the “tear sheet” prepared by the Servicer with respect to such Obligor and with respect to each Loan Asset for such
Obligor, which delivery shall be made within 45 days (or such longer period as specified in the Loan Agreement) after the end of
each such Obligor’s fiscal quarters (excluding the last fiscal quarter of each such Obligor’s fiscal year) and within
90 days (or such longer period as specified in the Loan Agreement) after the end of each such Obligor’s fiscal year. The
Servicer will promptly deliver to the Administrative Agent, upon reasonable request and to the extent received by the Borrower
and/or the Servicer, all other documents and information required to be delivered by the Obligors to the Borrower with respect
to any Loan Asset included in the Collateral Portfolio.

 

(g)   
Amendments to Loan Assets. The Servicer will deliver to the Administrative Agent and the Collateral Custodian a copy
of any material amendment, restatement, supplement, waiver or other modification to the Loan Agreement of any Loan Asset (along
with any internal documents prepared by the Servicer and provided to its investment committee in connection with such amendment,
restatement, supplement, waiver or other

 

    -130-

     

     

Portfolio, including to file financing
and continuation statements in respect of the Collateral Portfolio in accordance with Section 5.01(t).

 

(ii)   
The Administrative Agent may direct the Collateral Agent to take any action incidental to its express duties hereunder.
With respect to actions which are incidental to the actions specifically delegated to the Collateral Agent hereunder, the Collateral
Agent shall not be required to take any such incidental action hereunder, but shall be required to act or to refrain from acting
(and shall be fully protected in acting or refraining from acting) upon the direction of the Administrative Agent; provided
that the Collateral Agent shall not be required to take any action hereunder at the request of the Administrative Agent, any
Secured Party or otherwise if the taking of such action, in the reasonable determination of the Collateral Agent, (x) shall be
in violation of any Applicable Law or contrary to any provisions of this Agreement or (y) shall expose the Collateral Agent to
liability hereunder or otherwise (unless it has received indemnity which it reasonably deems to be satisfactory with respect thereto).
In the event the Collateral Agent requests the consent of the Administrative Agent to any incidental action hereunder and the Collateral
Agent does not receive a consent (either positive or negative) from the Administrative Agent within 10 Business Days of its receipt
of such request, then the Administrative Agent shall be deemed to have declined to consent to the relevant action.

 

(iii)   
Except as expressly provided herein, the Collateral Agent shall not be under any duty or obligation to take any affirmative
action to exercise or enforce any power, right or remedy available to it under this Agreement (x) unless and until (and to the
extent) expressly so directed by the Administrative Agent or (y) prior to the Facility Maturity Date (and upon such occurrence,
the Collateral Agent shall act in accordance with the written instructions of the Administrative Agent pursuant to clause (x)).
The Collateral Agent shall not be liable for any action taken, suffered or omitted by it in accordance with the request or direction
of any Secured Party, to the extent that this Agreement provides such Secured Party the right to so direct the Collateral Agent,
or the Administrative Agent. The Collateral Agent shall not be deemed to have notice or knowledge of any matter hereunder, including
an Event of Default, unless a Responsible Officer of the Collateral Agent has knowledge of such matter or written notice thereof
is received by the Collateral Agent.

 

(iv)   
The parties acknowledge that in accordance with the Customer Identification Program (CIP) requirements under the USA PATRIOT
Act and its implementing regulations, the Collateral CustodianAgent
in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that
identifies each person or legal entity that establishes a relationship or opens an account with the Collateral CustodianAgent.
The Borrower hereby agrees that it shall provide the Collateral CustodianAgent
with such information as it may reasonably request including, but not limited to, the Borrower’s name, physical address,
tax identification number and other information that will help the Collateral CustodianAgent
to identify and verify the Borrower’s identity such as organizational

 

    -151-

     

     

signed by the Required
Lenders, the Administrative Agent, the Servicer and the Borrower, and each such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided, however, that no such amendment, waiver
or consent shall:

 

(a)   
extend or increase the Commitment of any Lender without the written consent of such Lender;

 

(b)   
other than any modifications
contemplated by Section 11.01(a) or (c), modify the definition of “Reinvestment Period” or “Stated Maturity Date”
without the written consent of SMBC (to the extent SMBC is a Lender) and each Lender that has at least the lesser of (i) $75,000,000
in Commitments and (ii) 10% of Aggregate Commitments;

 

(c)   
(b) postpone any date fixed by this Agreement or any other Transaction
Document for any payment of principal, interest, fees or other amounts due to the Lenders (or any of them) hereunder or under any
other Transaction Document without the written consent of each Lender directly affected thereby;

 

(d)   
(c) reduce the principal of, or the rate of interest specified herein
on, any Advance, or (subject to clause (ii) of the second proviso to this Section 11.01) any fees or other amounts payable
hereunder or under any other Transaction Document, or change the manner of computation of any financial ratio (including any change
in any applicable defined term) used in determining the InterestBase
Rate, Prime Rate, or LIBOR Yield Rate that would result in a reduction of any interest rate on any LoanAdvance
or any fee payable hereunder without the written consent of each Lender directly affected thereby; provided,
however, that this clause (cd)
shall not apply in the case of an amendment to adopt a Successor Rate;

 

(e)   
(d) change any provision in a manner that would alter the pro
rata sharing of payments required thereby without the written consent of each Lender;

 

(f)   
(e) change any provision of this Section or the definition of “Required
Lenders” or any other provision hereof specifying the number or percentage of Lenders required to amend, waive or otherwise
modify any rights hereunder or make any determination or grant any consent hereunder without the written consent of each Lender;

 

(g)   
modify any provision of
Section 2.04(a), (b), (c) or (d) that would have the effect of modifying the order of priority of payments without the written
consent of each Lender, or modify any other provision of Section 2.04(a), (b), (c) or (d) without the written consent of SMBC (to
the extent SMBC is a Lender) and each Lender that has at least the lesser of (i) $75,000,000 in Commitments and (ii) 10% of Aggregate
Commitments, and in each case is directly and adversely affected by such modification;

 

(h)   
modify the definition of
“Adjusted Borrowing Value,” “Applicable Percentage,” “Borrowing Base,” “Concentration
Limits” or “Excess Concentration Amount,” or modify any defined term that comprises a component of any of the
above definitions, in each case which would have the effect of materially increasing the Borrowing Base without the written consent
of each Lender; provided that any modification to the definition of “Applicable Percentage” requires the consent
of all Lenders;

 

    -155-

     

     

(i)   
modify Schedule III hereto
in a manner that would have the effect of materially increasing the Borrowing Base without the written consent of SMBC (to the
extent SMBC is a Lender) and each Lender that has at least the lesser of (i) $75,000,000 in Commitments and (ii) 10% of Aggregate
Commitments;

 

(j)   
except to the extent otherwise
expressly permitted or contemplated by the provisions of this Agreement or the applicable Transaction Documents, modify any provisions
of this Agreement in order to release all or substantially all of the Collateral Portfolio, without the written consent of SMBC
(to the extent SMBC is a Lender) and each Lender that has at least the lesser of (i) $75,000,000 in Commitments and (ii) 10% of
Aggregate Commitments;

 

(k)   
materially modify any obligations
of the Borrower to furnish any report required by the provisions of Section 6.08 or to materially modify the contents of any such
report, without the written consent of SMBC (to the extent SMBC is a Lender) and each Lender that has at least the lesser of (i)
$75,000,000 in Commitments and (ii) 10% of Aggregate Commitments; or

 

(l)   
modify the definition of
“Waterfall Coverage Ratio Test” without the written consent of SMBC (to the extent SMBC is a Lender) and each Lender
that has at least the lesser of (i) $75,000,000 in Commitments and (ii) 10% of Aggregate Commitments;

 

and, provided, further,
that (i) no amendment, waiver or consent shall amend, modify or waive any provision adversely affecting the rights, obligations
or duties of the Collateral Custodian, the Collateral Agent or the Bank, in each case without the prior written consent of the
Collateral Custodian, the Collateral Agent or the Bank, as applicable, (ii) each Fee Letter may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties thereto and

 

(iii)   
notwithstanding the foregoing, the Aggregate Commitments may be increased up to an amount equal to $800,000,0001,000,000,000
with only the consent of the Borrower, the Administrative Agent and each Lender whose Commitment is being increased.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment,
waiver or consent hereunder (and any amendment, waiver or consent which by its terms requires the consent of all Lenders or each
affected Lender may be effected with the consent of the applicable Lenders other than Defaulting Lenders), except that

(x) the Commitment of any
Defaulting Lender may not be increased or extended without the consent of such Lender and (y) any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender disproportionately
and materially adversely relative to other affected Lenders shall require the consent of such Defaulting Lender;

 

and, provided, further,
that any amendment, modification or waiver to correct any inconsistency or cure any ambiguity or error in this Agreement may be
entered into with the written consent of only the Borrower, the Servicer and the Administrative Agent.;

 

and,
provided, further, that the Borrower (or the Servicer on its behalf) will provide notice to the Collateral Custodian
of the effectiveness of each amendment, waiver, and consent; provided,

 

    -156-

     

     

however,
that failure to provide such notice to the Collateral Custodian shall not affect the effectiveness of such amendment, waiver, or
consent.

 

SECTION 11.02          
Notices, Etc. All notices and other communications hereunder shall, unless otherwise stated herein, be in writing (which
shall include facsimile communication and communication by e-mail) and faxed, e-mailed or delivered, to each party hereto, at its
address set forth under its name below or at such other address as shall be designated by such party in a written notice to the
other parties hereto:

 

If to the Borrower:

 

Ares Capital JB Funding LLC

245 Park Avenue, 44th Floor

New York, New York 10167

Attention: General Counsel and Chief Financial Officer

Facsimile No.: (212) 750-1777

Confirmation No.: (212) 750-7300

 

and in each case:

 

Ares Capital JB Funding LLC

2000 Avenue of the Stars, 12th Floor

Los Angeles, California 90067

Attention: Chief Accounting Officer

Facsimile No.: (310) 201-4197

Confirmation No.: (310) 201-4205

 

with a copy to:

 

Latham & Watkins LLP

355 South Grand Avenue

Los Angeles, California 90071

Attention: Dominic Yoong

Facsimile No.: (213) 891-8763

 

If to the Servicer:

 

Ares Capital Corporation

245 Park Avenue, 44th Floor

New York, New York 10167

Attention: General Counsel and Chief Financial Officer

Facsimile No.: (212) 750-1777

Confirmation No.: (212) 750-7300

 

    -157-

     

     

If to the Administrative
Agent:

 

Sumitomo Mitsui Banking Corporation

277 Park Avenue

New York, NY 10172

Attention: Claire Kowalski

Facsimile No.: (212) 224-4397

 

If to the Lender hereunder as of the Closing Date:

 

Sumitomo Mitsui Banking Corporation

277 Park Avenue

New York, NY 10172

Attention: Claire Kowalski

Facsimile No.: (212) 224-4397

 

If to any assignee of the Lender which becomes
a party to this Agreement through the execution of an Assignment and Acceptance and Joinder Supplement after the Closing Date;

 

To the address of such assignee of the Lender as
set forth in the Assignment and Acceptance and Joinder Supplement executed by such assignee of the Lender

 

If to the Collateral
Agent:

 

Sumitomo Mitsui Banking Corporation

277 Park Avenue

New York, NY 10172

Attention: Claire Kowalski

Facsimile No.: (212) 224-4397

 

If to the Bank:

 

U.S. Bank National Association

Corporate Trust Services

One Federal Street, Third Floor

Boston, Massachusetts 02110

Reference: CDO Unit – Ares Capital JB Funding
LLC

Attention: John
LeuriniJames
Byrnes

Facsimile No: (866) 489-9502

Email: aresmgmt@usbank.com and john.leurinijames.byrnes@usbank.com

 

If to the Collateral Custodian:

 

U.S. Bank National Association

as the Collateral Custodian

1719 Range Way

Florence, SC 29501

Attention: Steve Garrett

 

    -159-

     

     

Facsimile No.: 843-673-0162

 

with a copy to:

 

U.S. Bank National Association

Corporate Trust Services

One Federal Street, Third Floor

Boston, Massachusetts 02110

Reference: CDO Unit – Ares Capital JB Funding
LLC

Attention: John
LeuriniJames
Byrnes

Facsimile No: (866) 489-9502

Email: aresmgmt@usbank.com and john.leurinijames.byrnes@usbank.com

 

Notices and communications by facsimile and
e-mail shall be effective when sent, and notices and communications sent by other means shall be effective when received.

 

SECTION 11.03          
No Waiver; Remedies. No failure on the part of the Administrative Agent, the Collateral Agent or the Lender to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of
any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

 

SECTION 11.04          Binding
Effect; Assignability; Multiple Lenders.

 

(a)    
This Agreement shall be binding upon and inure to the benefit of the Borrower, the Servicer, the Administrative Agent, the Lender,
the Collateral Agent, the Collateral Custodian, the Bank and their respective successors and permitted assigns. The Lender and
its respective successors and assigns may assign, syndicate, or grant a security interest or sell a participation interest in,
(i) this Agreement and the Lender’s rights and obligations hereunder and interest herein in whole or in part (including by
way of the sale of participation interests therein) and/or (ii) any Advance (or portion thereof) or any Variable Funding Note (or
any portion thereof) to any Person other than the Borrower or an Affiliate thereof; provided that, (x) so long as no Event
of Default has occurred, unless the Borrower shall otherwise consent in its sole discretion, the Lender may only assign, syndicate,
grant a security interest or sell a participation in, its rights and obligations hereunder to an Affiliate who is not an Ares Competitor
and (y) after an Event of Default has occurred, the Lender may assign its rights and obligations hereunder to any Person or Persons
who are not an Ares Competitor. Any such assignee shall execute and deliver to the Servicer, the Borrower and the Administrative
Agent a fully-executed assignment and acceptance substantially in the form of Exhibit M hereto (an “Assignment
and Acceptance”) and a fully-executed Joinder Supplement. The parties to any such assignment, grant or sale of a participation
interest shall execute and record in its books and records such agreement or document as may be satisfactory to such parties. None
of the Borrower, the Transferor or the Servicer may assign, or permit any Lien (other than Permitted Liens) to exist upon, any
of its rights or obligations hereunder or under any Transaction Document or any interest herein or in any Transaction Document
without the prior written

 

    -160-

     

     

ANNEX A

 

Commitments

 

	Lender	Commitment
	Sumitomo Mitsui Banking Corporation	$500,000,000
	Citizes Bank, N.A.	$150,000,000
	Aggregate Commitments:	$650,000,000

 

Ares Capital JB Funding LLC

Loan and Servicing AgreementEX-4.5

 Exhibit 4.5 

THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY STATE SECURITIES LAWS. THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY, AND THIS WARRANT AND THE UNDERLYING SHARES OF COMMON STOCK MAY NOT BE TRANSFERRED UNTIL
(i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE
SECURITIES ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS SUCH TRANSFER IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. 
 THIS
WARRANT MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR PERSON IN THE UNITED STATES UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY
SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT. 

AVADIM TECHNOLOGIES, INC. 

COMMON STOCK WARRANT 
  

			
	Company:	  	Avadim Technologies, Inc., a Wyoming corporation (the “Company”
		
	Number of Shares:	  	______________ (the “Shares”)
		
	Type/Series of Stock:	  	Common Stock
		
	Warrant Price:	  	$______ per Share
		
	Issue Date:	  	________ __, 20__
		
	Expiration Date:	  	________, __, 20__. See also Section 5.1(b).
		
	Consulting Agreement:	  	This Warrant to Purchase Stock (this “Warrant”) is issued in connection with that certain Consulting Agreement of even date herewith between ______________. and the Company (as the same may be amended,
modified, supplemented or restated, the “Agreement”).

 THIS WARRANT CERTIFIES THAT, for good and valuable consideration, __________________, (together with any successor or
permitted assignee or transferee of this Warrant or of any shares issued upon exercise hereof, “Holder”), is entitled to purchase the number of fully paid and non-assessable shares (the
“Shares”) of Common Stock (the “Class”) of the Company at the above-stated Warrant Price, all as set forth above and as adjusted pursuant to Section 2 of this Warrant, subject to the provisions
and upon the terms and conditions set forth in this Warrant. 
 This Warrant may be exercised as to the Shares which have vested as set forth in Exhibit
“2” (“Vested Shares”). Any Shares which remain unvested (“Unvested Shares”) as of the expiration or earlier termination of the Agreement and do not automatically vest upon such date in
accordance with the terms and conditions of the Agreement shall be void thereafter. 

	1.	 EXERCISE. 

1.1 Method of Exercise. Holder may at any time and from time to time exercise this Warrant, in whole or in part, by delivering to the
Company the original of this Warrant together with a duly executed Notice of Exercise in substantially the form attached hereto as Appendix 1 and, unless Holder is exercising this Warrant pursuant to a cashless exercise set forth in
Section 1.2, a check, wire transfer of same-day funds (to an account designated by the Company), or other form of payment acceptable to the Company for the aggregate Warrant Price for the Vested Shares
being purchased. 
 1.2 Cashless Exercise. On any exercise of this Warrant, in lieu of payment of the aggregate Warrant Price in the
manner as specified in Section 1.1 above, but otherwise in accordance with the requirements of Section 1.1, Holder may elect to receive Shares equal to the value of this Warrant, or portion hereof as to which this Warrant is being
exercised. Thereupon, the Company shall issue to Holder such number of fully paid and non-assessable Shares as are computed using the following formula: 

 

					
		 	X = Y(A-B)/A
			
	where:	 		  	
			
		 	X =	  	the number of Shares to be issued to Holder;
			
		 	Y =	  	the number of Vested Shares with respect to which this Warrant is being exercised (inclusive of the Shares surrendered to the Company in payment of the aggregate Warrant Price);
			
		 	A	  	the fair market value (as determined pursuant to Section 1.3 below) of one Share; and
			
		 	B =	  	the Warrant Price (as adjusted to the date of such calculation).

 1.3 Fair Market Value. If the Company’s Common Stock is then traded or quoted on a United States
national securities exchange, inter-dealer quotation system or over-the-counter market (a “Trading Market”), the fair market value of a Share
shall be the VWAP of the Common Stock on the Trading Day immediately before the date on which Holder delivers this Warrant together with its Notice of Exercise to the Company. If the Company’s Common Stock is not traded in a Trading Market, the
Board of Directors of the Company shall determine the fair market value of a Share in its reasonable good faith judgment. 
 1.4 Certain
Definitions. In addition to the terms defined elsewhere in this Warrant, the following terms have the following meanings: 
 (a)
“Board of Directors” means the board of directors of the Company. 
 (b) “Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of California or the State of North Carolina are authorized or
required by law or other governmental action to close. 
 (c) “Trading Day” means a day on which the principal
Trading Market is open for trading. 
 (d) “VWAP” means, for any date, the price determined by the first of
the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which
the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time), or (b) if the Common Stock is not then listed or quoted for trading on OTCQB
or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported. 

  
 2 

 1.5 Delivery of Certificate and New Warrant. As promptly as reasonably practicable
after the date Holder exercises this Warrant in the manner set forth in Section 1.1 or 1.2 above, the Company shall deliver to Holder a certificate representing the Shares issued to Holder upon such exercise and, if this Warrant has not been
fully exercised and has not expired, a new warrant of like tenor representing the Shares not so acquired. 
 1.6 Replacement of
Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in
form, substance and amount to the Company or, in the case of mutilation, on surrender of this Warrant to the Company for cancellation, the Company shall, within a reasonable time, execute and deliver to Holder, in lieu of this Warrant, a new warrant
of like tenor and amount. 
 1.7 Treatment of Warrant Upon Acquisition of Company. 

(a) Acquisition. For the purpose of this Warrant, “Acquisition” means any transaction or series of related
transactions involving: (i) the sale, lease, exclusive license, or other disposition of all or substantially all of the assets of the Company (ii) any merger or consolidation of the Company into or with another person or entity (other than
a merger or consolidation effected exclusively to change the Company’s domicile), or any other corporate reorganization, in which the stockholders of the Company in their capacity as such immediately prior to such merger, consolidation or
reorganization, own less than a majority of the Company’s (or the surviving or successor entity’s) outstanding voting power immediately after such merger, consolidation or reorganization; or (iii) any sale or other transfer by the
stockholders of the Company of shares representing at least a majority of the Company’s then-total outstanding combined voting power. 

(b) Treatment of Warrant at Acquisition. In the event of an Acquisition, either (i) Holder shall exercise this Warrant pursuant to
Section 1.1 and/or 1.2 and such exercise will be deemed effective immediately prior to and contingent upon the consummation of the Acquisition or (ii) if Holder elects not to exercise the Warrant, this Warrant will expire immediately prior
to the consummation of such Acquisition. In the event the Company Holder does not notify the Company in writing as to whether it intends to exercise the Warrant prior to and contingent upon the consummation of the Acquisition then if, immediately
prior to the Acquisition, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above would be greater than the Warrant Price in effect on such date, then this
Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Vested Shares for which it shall not previously have been exercised, and the Company shall promptly notify Holder of the number
of Shares (or such other securities) issued upon such exercise to Holder and Holder shall be deemed to have restated each of the representations and warranties in Section 4 of the Warrant as the date thereof. 

(c) Notice. The Company shall provide Holder with written notice of any proposed Acquisition (together with such reasonable information
as Holder may reasonably require regarding the treatment of this Warrant in connection with such contemplated Acquisition giving rise to such notice), which is to be delivered to Holder not less than seven Business Days prior to the closing of the
proposed Acquisition. 
  

	2.	 ADJUSTMENTS TO THE SHARES AND WARRANT PRICE. 

2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend or distribution on the outstanding shares of the
Class payable in common stock or other securities or property (other than cash), then upon exercise of this Warrant, for each Share acquired, Holder shall receive, without additional cost to Holder, the total number and kind of securities and
property which Holder would have received had Holder owned the Shares of record as of the date the dividend or distribution occurred. If the Company 

  
 3 

 
subdivides the outstanding shares of the Class by reclassification or otherwise into a greater number of shares, the number of Shares purchasable hereunder shall be proportionately increased
and the Warrant Price shall be proportionately decreased. If the outstanding shares of the Class are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately
increased and the number of Shares shall be proportionately decreased. 
 2.2 Reclassification, Exchange, Combinations or
Substitution. Upon any event whereby all of the outstanding shares of the Class are reclassified, exchanged, combined, substituted, or replaced for, into, with or by Company securities of a different class and/or series, then from and after
the consummation of such event, this Warrant will be exercisable for the number, class and series of Company securities that Holder would have received had the Shares been outstanding on and as of the consummation of such event, and subject to
further adjustment thereafter from time to time in accordance with the provisions of this Warrant. The provisions of this Section 2.2 shall similarly apply to successive reclassifications, exchanges, combinations substitutions, replacements or
other similar events. 
 2.3 Subsequent Equity Sales. If the Company at any time while this Warrant is outstanding sells and issues
any Common Stock at a price per share less than the then Wan-ant Price (such issuances collectively, a “Dilutive Issuance”), as adjusted hereunder, then the Warrant Price shall be
reduced to equal a price determined by multiplying the Warrant Price by a fraction, the numerator of which shall be the number of shares of Common Stock issued and outstanding immediately prior to such Dilutive Issuance plus the number of shares of
Common Stock which the aggregate gross consideration received by the Company for the total number of additional shares of Common Stock so issued would purchase at the Warrant Price in effect immediately prior to such Dilutive Issuance, and the
denominator of which shall be the number of shares of Common Stock outstanding immediately prior to such Dilutive Issuance plus the number of such additional shares of Common Stock so issued. Such adjustment shall be made whenever a Dilutive
Issuance occurs. A Dilutive Issuance shall not include: (a) shares of Common Stock issued to employees, officers, directors or consultants of the Company or any subsidiary of the Company, (b) securities issued upon the exercise or exchange
of or conversion of any securities issued and outstanding on the date hereof. 
 2.4 No Fractional Share. No fractional Share shall be
issuable upon exercise of this Warrant and the number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional Share interest arises upon any exercise of the Warrant, the Company shall eliminate such fractional Share
interest by paying Holder in cash the amount computed by multiplying the fractional interest by (i) the fair market value (as determined in accordance with Section 1.3 above) of a full Share, less (ii) the then-effective Warrant
Price. 
 2.5 Notice/Certificate as to Adjustments. Upon each adjustment of the Warrant Price, Class and/or number of Shares, the
Company, at the Company’s expense, shall notify Holder in writing within a reasonable time setting forth the adjustments to the Warrant Price, Class and/or number of Shares and facts upon which such adjustment is based. The Company shall,
upon written request from Holder, furnish Holder with a certificate of its Chief Financial Officer, including computations of such adjustment and the Warrant Price, Class and number of Shares in effect upon the date of such adjustment. 

 

	3.	 REPRESENTATIONS AND COVENANTS OF THE COMPANY. 

3.1 Representations and Warranties. The Company represents and warrants to, and agrees with, Holder as follows: 

(a) All Shares which may be issued upon the exercise of this Warrant, and all securities, if any, issuable upon conversion of the
Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under
applicable federal and state securities laws or restrictions under any Agreement among the Company and Holder. The Company covenants that it shall at all times cause to be reserved and kept available out of its authorized and unissued capital stock
such number of shares of the Class, common stock and other securities as will be sufficient to permit the exercise in full of this Warrant 

  
 4 

 
and the conversion of the Shares into common stock or such other securities. The Company agrees that its issuance of this Warrant shall constitute full authority to its officers who are charged
with the duty of executing stock certificates to execute and issue the necessary certificates for Shares upon the exercise of this Warrant in the manner set forth in Section 1.1 or 1.2 above. 

3.2 Notice of Certain Events. If the Company proposes at any time to: (i) declare any dividend or distribution upon the outstanding
shares of the Class or common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (ii) offer for subscription or sale pro rata to the holders of the outstanding shares of the
Class any additional shares of any class or series of the Company’s stock (other than pursuant to contractual preemptive rights); (iii) effect any reclassification, exchange, combination, substitution, reorganization or recapitalization of
the outstanding shares of the Class; or (iv) effect an Acquisition or to liquidate, dissolve or wind up; then, in connection with each such event, the Company shall give Holder: 

(1) at least seven Business Days prior written notice of the date on which a record will be taken for such dividend, distribution, or
subscription rights (and specifying the date on which the holders of outstanding shares of the Class will be entitled thereto) or for determining rights to vote, if any, in respect of the matters referred to in Section 3.2 (i), (ii) or
(iii) above; and 
 (2) in the case of the matters referred to in Section 3.2 (iv) above at least seven Business Days prior
written notice of the date when the same will take place (and specifying the date on which the holders of outstanding shares of the Class will be entitled to exchange their shares for the securities or other property deliverable upon the
occurrence of such event). 
  

	4.	 REPRESENTATIONS AND WARRANTIES OF THE HOLDER. 

The Holder represents and warrants to the Company as follows: 

4.1 Purchase for Own Account. This Warrant and the securities to be acquired upon exercise of this Warrant by Holder are being acquired
for investment for Holder’s account, not as a nominee or agent, and not with a view to the public resale or distribution within the meaning of the Securities Act of 1933, as amended (the “Securities Act”). Holder also
represents that it has not been formed for the specific purpose of acquiring this Warrant or the Shares. 
 4.2 Disclosure of
Information. Holder is aware of the Company’s business affairs and financial condition and has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect
to the acquisition of this Warrant and its underlying securities. Holder further has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of this Warrant and its underlying
securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to Holder or to which Holder has access.

 4.3 Investment Experience. Holder understands that the purchase of this Warrant and its underlying securities involves substantial
risk. Holder has experience as an investor in securities of companies in the development stage and acknowledges that Holder can bear the economic risk of such Holder’s investment in this Warrant and its underlying securities and has such
knowledge and experience in financial or business matters that Holder is capable of evaluating the merits and risks of its investment in this Warrant and its underlying securities and/or has a preexisting personal or business relationship with the
Company and certain of its officers, directors or controlling persons of a nature and duration that enables Holder to be aware of the character, business acumen and financial circumstances of such persons. 

  
 5 

 4.4 Accredited Investor Status. Holder is an “accredited investor” within
the meaning of Regulation D promulgated under the Securities Act by virtue of being a natural person (a) who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with that person’s spouse in
excess of $300,000 in each of those years, and who has a reasonable expectation of reaching the same income level in the current year, or (b) whose individual net worth, or joint net worth with that person’s spouse, exceeds $1,000,000 (for
the purposes of calculating net worth: (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the
primary residence as of the date of this Warrant, shall not be included as a liability (except that if the amount of such indebtedness outstanding exceeds the amount outstanding 60 days before the date of this Warrant, other than as a result of the
acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary
residence shall be included as a liability). 
 4.5 The Securities Act. Holder understands that this Warrant and the Shares issuable
upon exercise hereof have not been registered under the Securities Act or under the securities or laws of any state of the United States, and have been and will be offered and sold in reliance upon a specific exemption therefrom, which exemption
depends upon, among other things, the bona fide nature of the Holder’s investment intent as expressed herein, and further that this Warrant may not be exercised absent registration of the underlying Shares under the Securities Act and
applicable state securities laws unless an exemption from such registration requirements is available. Holder understands that this Warrant and the Shares issued upon any exercise hereof must be held indefinitely as “Restricted
Securities” (as such term is defined in Rule 144 under the Securities Act) unless subsequently registered under the Securities Act and qualified under applicable state securities laws, or unless exemption from such registration and
qualification are otherwise available. Holder is aware of the provisions of Rule 144 promulgated under the Securities Act. 
 4.6 No
Voting Rights. Holder, as a Holder of this Warrant, will not have any voting rights until the exercise of this Warrant. 
  

	5.	 MISCELLANEOUS. 

5.1 Term and Automatic Conversion Upon Expiration. 

(a) Term. Subject to the provisions of Section 1.7 above, this Warrant is exercisable in whole or in part at any time and from time
to time on or before 6:00 PM, Eastern Time, on the Expiration Date and shall be void thereafter. 
 (b) Automatic Cashless Exercise upon
Expiration. In the event that, upon the Expiration Date, the fair market value of one Share (or other security issuable upon the exercise hereof) as determined in accordance with Section 1.3 above is greater than the Warrant Price in effect
on such date, then this Warrant shall automatically be deemed on and as of such date to be exercised pursuant to Section 1.2 above as to all Vested Shares (or such other securities) for which it shall not previously have been exercised, and the
Company shall, within a reasonable time, deliver a certificate representing the Shares (or such other securities) issued upon such exercise to Holder. 

5.2 Legends. The Shares (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) shall be imprinted
with a legend in substantially the following form: 
  

			
	 THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND IN ACCORDANCE
WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
	  	

  
 6 

			
	 THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE, INCLUDING A LOCK-UP PERIOD IN THE EVENT OF A PUBLIC OFFERING, AS SET FORTH IN THE WARRANT PURSUANT TO WHICH THESE SHARES WERE ISSUED, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE COMPANY.
	  	

  
  

	5.3	 Transfer Restrictions. 

(a) Before any proposed sale, pledge, or transfer of this Warrant or any Shares issuable upon exercise of this Warrant, unless there is
in effect a registration statement under the Securities Act covering the proposed transaction, Holder shall give notice to the Company of Holder’s intention to effect such sale, pledge, or transfer. Each such notice shall describe the manner
and circumstances of the proposed sale, pledge, or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at Holder’s expense by either (i) a written opinion of legal counsel of recognized standing
who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a “no
action” letter from the United States Securities and Exchange Commission (the “SEC”) to the effect that the proposed sale, pledge, or transfer of such Restricted Securities without registration will not result in a
recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale, pledge, or transfer of the Restricted
Securities may be effected without registration under the Securities Act, whereupon Holder shall be entitled to sell, pledge, or transfer the securities in accordance with the terms of the notice given by Holder to the Company. The Company will not
require such a legal opinion or “no action” letter (i) in any transaction in compliance with SEC Rule 144, if available, or (ii) in any transaction in which Holder distributes the Warrant or Shares to an affiliate of such Holder
for no consideration. Each certificate evidencing the Restricted Securities transferred as above provided shall bear, except if such transfer is made pursuant to SEC Rule 144, the appropriate restrictive legend(s) set forth above to the extent
applicable. 
 (b) This Warrant and the Shares issuable upon exercise of this Warrant may not be transferred or assigned in whole or
in part to any person or entity who is a competitor of the Company, as determined in good faith by the Company’s Board of Directors. 

Notices. All notices and other communications hereunder from the Company to Holder, or vice versa, shall be deemed delivered and
effective (1) when given personally, (ii) on the third (3rd) Business Day after being mailed by first-class registered or certified mail, postage prepaid, (iii) upon actual receipt
if given by facsimile or electronic mail and such receipt is confirmed in writing by the recipient, or (iv) on the first Business Day following delivery to a reliable overnight courier service, courier fee prepaid, in any case at such address
as may have been furnished to the Company or Holder, as the case may be, in writing by the Company or such Holder from time to time in accordance with the provisions of this Section 5.3(b)(i). All notices to Holder shall be addressed as follows
until the Company receives notice of a change of address 
  

					
	    	 	If to Holder:	 	                                     
                       
		 		 	                                     
                       
		 		 	c/o
                                         
             
		 		 	                                     
                       
		 		 	                                     
                       
		 		 	                                     
                       
			
		 		 	With copies to:

  
 7 

					
		 		 	                                     
                       
		 		 	                                     
                       
		 		 	                                     
                       
		 		 	Attn:
                                         
          
			
		 		 	                                     
                       
		 		 	                                     
                       
		 		 	                                     
                       
		 		 	Attn:
                                         
          

 Notice to the Company shall be addressed as follows until Holder receives notice of a change in address: 

Avadim Technologies, Inc. 
 81
Thompson Street 
 Asheville, NC 28803 

Attention: President 
 Fax: 828-274-7986 
 Email: David.Fann@avadimtechnologies.com 

5.4 Waiver. This Warrant and any term hereof may be changed, waived, discharged or terminated (either generally or in a particular
instance and either retroactively or prospectively) only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

5.5 Attorney’s Fees. In the event of any dispute between the parties concerning the terms and provisions of this Warrant, the party
prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 

5.6 Counterparts Facsimile/Electronic Signatures. This Warrant may be executed in counterparts, all of which together shall constitute
one and the same agreement. Any signature page delivered electronically or by facsimile shall be binding to the same extent as an original signature page with regards to any agreement subject to the terms hereof or any amendment thereto. 

5.7 Governing Law. This Warrant shall be governed by and construed in accordance with the laws of the State of California, without
giving effect to its principles regarding conflicts of law. 
 5.8 Headings. The headings in this Warrant are for purposes of
reference only and shall not limit or otherwise affect the meaning of any provision of this Warrant. 
 [Remainder of page left blank
intentionally] 
 [Signature page follows] 

  
 8 

 IN WITNESS WHEREOF, the
parties have caused this Warrant to Purchase Stock to be executed by their duly authorized representatives effective as of the Issue Date written above. 
  

			
	“COMPANY”
	
	AVADIM TECHNOLOGIES, INC.
		
	By:	 	  

	Name:	 	  

		 	(Print)
		
	Title:	 	  

		
	“HOLDER”	 	
	
	  

 APPENDIX 1 

NOTICE OF EXERCISE 
 1.
The undersigned Holder hereby exercises its right purchase ___________ shares of the Common Stock (the “Shares”) of Avadim Technologies Inc. (the “Company”) in accordance with the attached Warrant,
and tenders payment of the aggregate Warrant Price for such shares as follows: 
 [    ] check in the amount of
$__________ payable to order of the Company enclosed herewith 
 [    ] Wire transfer of immediately available funds to
the Company’s account 
 [    ] Cashless Exercise pursuant to Section 1.2 of the Warrant 

[    ] Other [Describe]  

2. Please issue a certificate or certificates representing the Shares in the name specified below: 

 

			
	                	 	                                      
                                         
                 
		 	        Holder’s Name
		
		 	                                      
                                         
                 
		
		 	                                      
                                         
                 
		 	        (Address)

 3. The undersigned represents, warrants and certifies as follows (one of the following must be
checked): 
 (a) ☐ the undersigned holder at the time of exercise of the Warrant is not in the United States, is not a
“U.S. person” as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and is not exercising the Warrant on behalf of, or for the account or benefit of a U.S.
person or a person in the United States and did not execute or deliver this exercise form in the United States; 
 (b) ☐ the
undersigned holder is resident in the United States or is a U.S. person who is a resident of the jurisdiction referred to in the address appearing below, and is an accredited investor as defined in Rule 501(a) of Regulation D under the Securities
Act (a “U.S. Accredited Investor”) and has completed the U.S. Accredited Investor Status Certificate in the form attached hereto; or 

(c) ☐ if the undersigned holder is resident in the United States or is a U.S. person, the undersigned holder has delivered to the
Company and the Company’s transfer agent, if any, an opinion of counsel (which will not be sufficient unless it is in form and substance satisfactory to the Company) or such other evidence satisfactory to the Company to the effect that with
respect to the securities to be delivered upon exercise of the Warrant, the issuance of such securities has been registered under the Securities Act and applicable state securities laws or an exemption from the registration requirements of the
Securities Act and applicable state securities laws is available. 
 “United States” and “U.S. person” are
as defined in Regulation S under the Securities Act. 

 Note: Certificates representing Shares will not be registered or delivered to an address in the United
States unless Box 3(b) or 3(c) above is checked. 
 4. If the undersigned has indicated that the undersigned is a U.S. Accredited
Investor by marking alternative 3(b) above, the undersigned represents and warrants to the Company that: 
 (a) the undersigned has
such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Shares, and the undersigned is able to bear the economic risk of loss of his or her entire investment; 

(b) the undersigned is: (i) purchasing the Shares for his or her own account or for the account of one or more U.S. Accredited
Investors with respect to which the undersigned is exercising sole investment discretion, and not on behalf of any other person; (ii) is purchasing the Shares for investment purposes only and not with a view to resale, distribution or other
disposition in violation of United States federal or state securities laws; and (iii) in the case of the purchase by the undersigned of the Shares as agent or trustee for any other person or persons (each a “Beneficial
Owner”), the undersigned holder has due and proper authority to act as agent or trustee for and on behalf of each such Beneficial Owner in connection with the transactions contemplated hereby; provided that: (A) if the undersigned
holder, or any Beneficial Owner, is a corporation or a partnership, syndicate, trust or other form of unincorporated organization, the undersigned holder or each such Beneficial Owner was not incorporated or created solely, nor is it being used
primarily to permit purchases without a prospectus or registration statement under applicable law; and (B) each Beneficial Owner, if any, is a U.S. Accredited Investor; and 

(c) the undersigned has not exercised the Warrant as a result of any form of general solicitation or general advertising, including
advertisements, articles, notices or other communications published in any newspaper, magazine or similar media or broadcast over radio, television or other form of telecommunications, or any seminar or meeting whose attendees have been invited by
general solicitation or general advertising. 
 5. If the undersigned has indicated that the undersigned is a U.S. Accredited Investor
by marking alternative 3(b) above, the undersigned also acknowledges and agrees that: 
 (a) the Company has provided to the
undersigned the opportunity to ask questions and receive answers concerning the terms and conditions of the offering, and the undersigned has had access to such information concerning the Company as he or she has considered necessary or appropriate
in connection with his or her investment decision to acquire the Shares; 
 (b) if the undersigned decides to offer, sell or otherwise
transfer any of the Shares, the undersigned must not, and will not, offer, sell or otherwise transfer any of such Shares directly or indirectly, unless: 

(i) the sale is pursuant to an effective registration statement under the Securities Act; 

(ii) the sale is to the Company; 

(iii) the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the
Securities Act and in compliance with applicable local laws and regulations; 
 (iv) the sale is made pursuant to the exemption from
the registration requirements under the Securities Act provided by Rule 144 thereunder, if available, and in accordance with any applicable state securities or “blue sky” laws; or 

 (v) the Shares are sold in a transaction that does not require registration under the
Securities Act or any applicable state laws and regulations governing the offer and sale of securities, 
 And, in the circumstances set
forth in clauses 5(b)(iii), (iv) or (v), the undersigned has prior to such sale furnished to the Company an opinion of counsel reasonably satisfactory to the Company; 

(c) the Shares will be issued “restricted securities” under applicable federal securities laws and that the
Securities Act and the rules of the United States Securities and Exchange Commission provide in substance that the undersigned may dispose of the Shares only pursuant to an effective registration statement under the Securities Act or an exemption
therefrom; 
 (d) the Company has no obligation to register any of the Shares or to take action so as to permit sales pursuant to the
Securities Act (including Rule 144 thereunder); 
 (e) the certificates representing the Shares (and any certificates issued in
exchange or substitution for the Shares) will bear a legend, in the form required by the Warrant Certificate, stating that such securities have not been registered under the Securities Act or the securities laws of any state of the United States and
may not be offered for sale or sold unless registered under the Securities Act and the securities laws of all applicable states of the United States or an exemption from such registration requirements is available; and 

(f) it consents to the Company making a notation on its records or giving instructions to any transfer agent of the Company in order to
implement the restrictions on transfer set forth and described in this Notice of Exercise. 
 Executed and delivered by the HOLDER this _____ day of
_____________________, 20___. 
  

					
	  

	Print name of Warrant Holder
		
	By:	 	  

		 	Signature	 	
		
		 	  

		 	Title	 	
		
		 	  

		 	(Please print name of individual whose signature appears above, if different from name of Warrant Holder printed above)

 U.S. ACCREDITED INVESTOR STATUS CERTIFICATE 

In connection with the exercise of an outstanding Warrant to acquire Warrant Shares of AVADIM TECHNOLOGIES INC. (the “Company”) by the
holder, the holder hereby represents and warrants to the Company that the holder, and each beneficial owner (each a “Beneficial Owner”), if any, on whose behalf the holder is exercising such warrants, satisfies one or more of
the following categories of Accredited Investor (please write “W/H” for the undersigned holder, and “B/O” for each beneficial owner, if any, on each line that applies): 

 

					
	      	  	Category 1.	  	A bank, as defined in Section 3(a)(2) of the United States Securities Act of 1933 (the “Securities Act”); or
			
	      	  	Category 2.	  	A savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act, whether acting in its individual or fiduciary capacity; or
			
	      	  	Category 3.	  	A broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934; or
			
	      	  	Category 4.	  	An insurance company as defined in Section 2(13) of the Securities Act; or
			
	      	  	Category 5.	  	An investment company registered under the United States Investment Company Act of 1940; or
			
	      	  	Category 6.	  	A business development company as defined in Section 2(a)(48) of the United States Investment Company Act of 1940; or
			
	      	  	Category 7.	  	A small business investment company licensed by the United States Small Business Administration under Section 301 (c) or (d) of the United States Small Business Investment Act of 1958; or
			
	      	  	Category 8.	  	A plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of US$5,000,000;
or
			
	      	  	Category 9.	  	An employee benefit plan within the meaning of the United States Employee Retirement Income Security Act of 1974 in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is
either a bank, savings and loan association, insurance company or registered investment adviser, or an employee benefit plan with total assets in excess of US$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons
who are Accredited Investors; or
			
	      	  	Category 10.	  	A private business development company as defined in Section 202(a)(22) of the United States Investment Advisers Act of 1940; or
			
	      	  	Category 11.	  	An organization described in Section 501(c)(3) of the United States Internal Revenue Code, a corporation, a Massachusetts or similar business trust, or a partnership, not formed for the specific purpose of acquiring the Warrant
Shares offered, with total assets in excess of US$5,000,000; or
			
	      	  	Category 12.	  	Any director or executive officer of the Company; or
			
	      	  	Category 13.	  	A natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of purchase, exceeds US$1,000,000 (for the purposes of calculating net worth: (i) the person’s primary residence
shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of this certification, shall not be included as a liability
(except that if the amount of such indebtedness outstanding at the time of this certification exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess
shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability);
or

					
	      	  	Category 14.	  	A natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person’s spouse in excess of US$300,000 in each of those years and has a reasonable
expectation of reaching the same income level in the current year; or
			
	      	  	Category 15.	  	A trust, with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the Warrant Shares offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the
Securities Act; or
			
	      	  	Category 16.	  	Any entity in which all of the equity owners meet the requirements of at least one of the above categories — if this alternative is selected you must identify each equity owner and provide statements from each demonstrating how
they qualify as an accredited investor.

 DATED the ______day of ______________, 20___ 

 

					
	  

	Print name of Warrant Holder
		
	By:	 	  

		 	Signature	 	
		
		 	  

		 	Title	 	
		
		 	  

		 	(Please print name of individual whose signature appears above, if different from name of Warrant Holder printed above)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]