Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 1 TO AMENDED AND RESTATED SENIOR

SECURED REVOLVING CREDIT AGREEMENT AND AMENDMENT NO. 2 TO THE

GUARANTEE, PLEDGE AND SECURITY AGREEMENT

          This AMENDMENT NO. 1 with respect to the Amended and Restated Senior Secured Revolving
Credit Agreement, dated as of February 22, 2011 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), and AMENDMENT NO. 2 with respect to the
Guarantee, Pledge and Security Agreement dated as of May 27, 2010 (as amended, supplemented or
otherwise modified from time to time, the “Guarantee and Security Agreement”), is made as
of July 8, 2011, among FIFTH STREET FINANCE CORP., a Delaware corporation (the “Borrower”), FSFC
Holdings, Inc., a Delaware corporation (“FSFC”), Fifth Street Fund of Funds LLC, a
Delaware limited liability company (“Fifth Street”; collectively with FSFC, the
“Subsidiary Guarantors”), the several banks and other financial institutions or entities
from time to time party to the Credit Agreement as lenders (the “Lenders”), and ING
CAPITAL LLC, as administrative agent (in such capacity, the “Administrative Agent”) for
the Lenders under the Credit Agreement and as collateral agent for the parties defined as
“Secured Parties” under the Guarantee and Security Agreement (the “Amendment”).
Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the
Credit Agreement.

WITNESSETH:

          WHEREAS, pursuant to the Credit Agreement, the Lenders have made certain loans and other
extensions of credit to the Borrower;

          WHEREAS, Borrower filed a Certificate of Dissolution with the Delaware Secretary of State on
March 31, 2011 dissolving FSF/MP Holdings, Inc. (“FSF/MP”), a Subsidiary Guarantor, and
pursuant to Section 6.03(b) of the Credit Agreement, all assets of FSF/MP, if any, were
distributed to the Borrower;

          WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent amend
certain provisions of the Credit Agreement and the Lenders signatory hereto and the
Administrative Agent have agreed to do so on the terms and subject to the conditions contained in
this Amendment;

          WHEREAS, the Borrower also desires to amend certain annexes to the Guarantee and Security
Agreement;

          NOW THEREFORE, in consideration of the promises and the mutual agreements contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

SECTION I AMENDMENT TO CREDIT AGREEMENT

          Effective as of the Effective Date (as defined below), and subject to the terms and
conditions set forth below, the Credit Agreement is hereby amended as follows:

1.1. Amendments to Section 1.01 of the Credit Agreement.

 

 

     (a) The definition of “Applicable Commitment Fee Rate” set forth in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as follows:

     ““Applicable Commitment Fee Rate” means, in the case of any Commitment from and
after the Restatement Effective Date, with respect to any period (an “Applicable
Period”), a rate per annum equal to (x) 0.50%, with respect any Unused Portion of the
Commitment of any Lender during such Applicable Period if the utilized portion of the
aggregate Commitments during such Applicable Period (after giving effect to borrowings,
prepayments and commitment reductions during such Applicable Period) is greater than an
amount equal to thirty-five percent (35.00%) of the aggregate Commitments during such
Applicable Period and (y) 1.00%, with respect to any Unused Portion of the Commitment of any
Lender during such Applicable Period if the utilized portion of the aggregate Commitments
during such Applicable Period (after giving effect to borrowings, prepayments and commitment
reductions during such Applicable Period) is less than or equal to an amount equal to
thirty-five percent (35.00%) of the aggregate Commitments during such Applicable Period.

          For purposes of determining the Applicable Commitment Fee Rate, the Commitments shall
be deemed to be utilized to the extent of the outstanding Loans and LC Exposure of all
Lenders.”

     (b) The definition of “Applicable Margin” set forth in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as follows:

          ““Applicable Margin” means:

          (a) on any day on or after the Restatement Effective Date, during which the Borrower
maintains (X) an Improved Credit Rating or (Y) a Minimum Credit Rating and the utilized
portion of the aggregate Commitments as of the close of business on such day (after giving
effect to borrowings, prepayments and commitment reductions on such day) is greater than
thirty-five percent (35.00%) of the aggregate Commitments, (i) with respect to any ABR Loan,
2.00% per annum; and (ii) with respect to any Eurocurrency Loan, 3.00% per annum;

          (b) on any day on or after the Restatement Effective Date, during which the Borrower
maintains a Minimum Credit Rating and the utilized portion of the aggregate Commitments as
of the close of business on such day (after giving effect to borrowings, prepayments and
commitment reductions on such day) is less than or equal to thirty-five percent (35.00%) of
such aggregate Commitments, (i) with respect to any ABR Loan, 2.25% per annum; and (ii) with
respect to any Eurocurrency Loan, 3.25% per annum; and

          (c) on any other day on or after the Restatement Effective Date (i) with respect to any
ABR Loan, 2.50% per annum; and (ii) with respect to any Eurocurrency Loan, 3.50% per annum.

          For purposes of determining the Applicable Margin, the Commitments shall be deemed to
be utilized to the extent of the outstanding Loans and LC Exposure of all Lenders.”

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     (c) The definition of “Change in Law” set forth in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as follows:

          ““Change in Law” means (a) the adoption of any law, rule or regulation or treaty after
the Original Effective Date, (b) any change in any law, rule or regulation or treaty or in the
interpretation, implementation or application thereof by any Governmental Authority after the
Original Effective Date or (c) compliance by any Lender or the Issuing Bank (or, for purposes of
Section 2.13(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s
holding company, if any) with any request, guideline or directive (whether or not having the force
of law) of any Governmental Authority made or issued after the Original Effective Date,
provided that, notwithstanding anything herein to the contrary, (I) the Dodd-Frank Wall
Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives in
connection therewith and (II) all requests, rules, guidelines or directives promulgated by the Bank
For International Settlements, the Basel Committee on Banking Supervision (or any successor or
similar authority) or the United States regulatory authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a “Change in Law” regardless of the date enacted, adopted or
issued.”

     (d) The definition of “Eligible Portfolio Investments” set forth in Section 1.01 of the Credit
Agreement is hereby amended by amending and restating clause (i) of the proviso thereof as follows:

     “(i) (w) the Portfolio Investment is not denominated in United States or Canadian
dollars, (x) the principal operations of the corresponding Portfolio Company, and any assets
of such Portfolio Company pledged as collateral for such Portfolio Investment are not
primarily located in the United States or Canada, (y) the corresponding Portfolio Company is
not organized under the laws of the United States, Canada or any state or province thereof,
or (z) the corresponding Portfolio Company is not domiciled within the United States or
Canada;”

     (e) The definition of “Material Indebtedness” set forth in Section 1.01 of the Credit
Agreement is hereby amended by deleting the number “$5,000,000” in clauses (a) and (b) thereof,
and replacing it with the number “$20,000,000”.

     (f) The definition of “Minimum Credit Rating” set forth in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as follows:

     ““Minimum Credit Rating” means any of the following (i) a long term issuer
default rating of BBB- from S&P, (ii) a long term issuer rating of Baa3 from Moody’s, or
(iii) a long term issuer default rating of BBB- from Fitch.”

     (g) The definition of “Other Permitted Indebtedness” set forth in Section 1.01 of the Credit
Agreement is hereby amended by (i) adding the word “and” before clause (d) thereof; (ii) deleting
the phrase “provided that such Indebtedness does not exceed $2,000,000 in the aggregate at any time
outstanding;” at the end of clause (d) and replacing it with “.”; and (iii) deleting clause (e)
thereof.

     (h) Section 1.01 of the Credit Agreement is hereby further amended by adding the following
new defined terms in the appropriate alphabetical order:

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          ““Amendment No. 1 Effective Date” means July 8, 2011.”

          ““FATCA” means sections 1471 through 1474 of the Code, the United States Treasury
regulations promulgated thereunder and published guidance with respect thereto.”

          ““Improved Credit Rating” means any of the following (i) a long term issuer default
rating of at least BBB from S&P, (ii) a long term issuer rating of at least Baa2 from Moody’s, or
(iii) a long term issuer default rating of at least BBB from Fitch.”

1.2. Amendment to Section 2.07(f)(i)(B) of the Credit Agreement. Section 2.07(f)(i)(B) of
the Credit Agreement is hereby amended by deleting the number “$300,000,000”, and replacing it with
the number “$350,000,000”.

1.3. Amendment to Section 2.09(b) of the Credit Agreement. Section 2.09(b) of the Credit
Agreement is hereby amended and restated in its entirety as follows:

“(b) Mandatory Prepayments due to Borrowing Base Deficiency or Excess Revolving Credit
Exposure.

          (i) Borrowing Base Deficiency. In the event that at any time any Borrowing Base
Deficiency shall exist, the Borrower shall prepay the Loans (or provide cover for Letters of
Credit as contemplated by Section 2.04(k)) or reduce Other Covered Indebtedness in such
amounts as shall be necessary so that such Borrowing Base Deficiency is promptly cured,
provided that (X) the aggregate amount of such prepayment of Loans (and cover for
Letters of Credit) shall be at least equal to the Revolving Percentage times the aggregate
prepayment of the Covered Debt Amount; and (Y) if within 5 Business Days of the occurrence
of any Borrowing Base Deficiency, the Borrower shall present to the Administrative Agent a
reasonably feasible plan that will enable any such Borrowing Base Deficiency to be cured
within 30-Business Days of the occurrence of such Borrowing Base Deficiency (which
30-Business Day period shall include the 5 Business Days permitted for delivery of such
plan), then such prepayment or reduction shall be effected in accordance with such plan.
Notwithstanding the foregoing, the Borrower shall pay interest in accordance with Section
2.11(c) for so long as the Covered Debt Amount exceeds the Borrowing Base during such
30-Business Day Period. For clarity, in the event that the Borrowing Base Deficiency is not
cured prior to the end of such 30-Business Day period, it shall constitute an Event of
Default under clause (a) of Article VII.

          (ii) Excess Revolving Credit Exposure. In the event that the amount of total
Revolving Credit Exposure exceeds the total Commitments, the Borrower shall prepay Loans in
such amounts as shall be necessary so that the amount of total Revolving Credit Exposure
does not exceed the total Commitments.”

1.4. Amendment to Section 2.11(c) of the Credit Agreement. Section 2.11(c) of the Credit
Agreement is hereby amended by adding the following phrase after the phrase “Notwithstanding the
foregoing, if any Event of Default has occurred and is continuing,”:

“or if at any time the Covered Debt Amount exceeds the Borrowing Base,”

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1.5. Amendment to Section 2.13(b) of the Credit Agreement. Section 2.13(b) of the Credit
Agreement is hereby amended by deleting the phrase “capital requirements” in the first sentence
thereof and replacing it with “capital or liquidity requirements”, and by adding the phrase “or
liquidity position” at the end of the parenthetical therein.

1.6. Amendment to Section 2.15 of the Credit Agreement.

     (a) Section 2.15(e) of the Credit Agreement is hereby amended by amending and restating the
paragraph beginning “Without limiting the generally of the foregoing, if the Borrower is resident
for tax purposes in the United States,” in its entirety as follows:

“Without limiting the generality of the foregoing, if the Borrower is resident for U.S.
federal income tax purposes in the United States, (A) any Lender that is a “United States
person” as defined in section 7701(a)(30) of the Code shall deliver to the Borrower and the
Administrative Agent on or prior to the date on which such Lender becomes a Lender under
this Agreement (and from time to time thereafter upon the reasonable request of the
Borrower or the Administrative Agent), duly completed copies of Internal Revenue Service
Form W-9 or such other documentation or information prescribed by applicable laws or
reasonably requested by the Borrower or the Administrative Agent as will enable the
Borrower or the Administrative Agent, as the case may be, to determine whether or not such
Lender is subject to backup withholding or information reporting requirement; and (B) each
Foreign Lender shall deliver to the Borrower and the Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such
Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon
the reasonable request of the Borrower or the Administrative Agent, but, in any event, only
if such Foreign Lender is legally entitled to do so), whichever of the following is
applicable:”

     (b) Section 2.15(f) of the Credit Agreement is hereby amended and restated in its entirety
as follows:

“(f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or an Issuing
Bank determines, in its sole discretion, that it has received a refund or credit (in lieu
of such refund) of any Covered Taxes or Other Taxes as to which it has been indemnified by
the Borrower or with respect to which the Borrower has paid additional amounts pursuant to
this Section, it shall pay to the Borrower an amount equal to such refund or credit (but
only to the extent of indemnity payments made, or additional amounts paid, by the Borrower
under this Section with respect to the Covered Taxes or Other Taxes giving rise to such
refund or credit), net of all reasonable out-of-pocket expenses of the Administrative
Agent, any Lender or an Issuing Bank, as the case may be, and without interest (other than
any interest paid by the relevant Governmental Authority with respect to such refund or
credit), provided that the Borrower, upon the request of the
Administrative Agent, any Lender or an Issuing Bank, agrees to repay the amount paid over
to the Borrower (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to the Administrative Agent, any Lender or an Issuing Bank in the
event the Administrative Agent, any Lender or an Issuing Bank is required to repay such
refund or credit to such Governmental Authority. This subsection shall not be construed to
require the Administrative Agent, any Lender or an Issuing

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Bank to make available its tax returns or its books or records (or any other information
relating to its taxes that it deems confidential) to the Borrower or any other Person.”

     (c) Section 2.15 of the Credit Agreement is hereby amended by adding the following new
clauses (g) and (h) at the end thereof:

“(g) Conduit Financing Arrangements. Each of the Administrative Agent and each Lender
represents that as of the date hereof (or, in the case of an assignee pursuant to Section
9.04(b)(i), as of the date of assignment) it is not participating in a conduit financing
arrangement as defined in Section 7701(l) of the Code and the regulations thereunder
(regardless of whether such arrangement is pursuant to the use of an SPC as defined in
Section 9.04(e)) in connection with its participation in any of the Loan Documents (a
“Conduit Financing Arrangement”). Notwithstanding anything to the contrary in this Section
2.15, if the Internal Revenue Service determines that any SPC (as defined in Section
9.04(e)) is a conduit entity participating in a Conduit Financing Arrangement with respect
to any Loan Document and the Borrower was not a participant to such arrangement (other than
as a Borrower under this Agreement), then (i) the Borrower shall have no obligation to pay
additional amounts or indemnify the SPC for any Taxes with respect to any payments
hereunder to the extent that the amount of such Taxes exceeds the amount that would have
otherwise been withheld or deducted had the Internal Revenue Service not made such a
determination and (ii) such SPC shall indemnify the Borrowers in full for any and all taxes
for which the Borrower is held directly liable under Section 1461 of the Code by virtue of
such Conduit Financing Arrangement; provided that such Borrower (A) promptly forward to the
indemnitor an official receipt of such documentation satisfactorily evidencing such
payment, (B) contest such tax upon the reasonable request of the indemnitor and at such
indemnitor’s cost and (C) pay such indemnitor within thirty (30) days any refund of such
taxes (including interest thereon).

(h) FATCA Compliance. If a payment made to a Foreign Lender hereunder would be subject to
United States federal withholding Tax imposed by FATCA if such Foreign Lender fails to
comply with the applicable reporting requirements of FATCA (including those contained in
Section 1471(b) or 1472(b) of the Code, as applicable), such Foreign Lender shall deliver
to the Borrower and Administrative Agent documentation that it is required to deliver under
applicable law to enable the Borrower and Administrative Agent to comply with their
obligations under FATCA and to determine that such Foreign Lender has complied with such
applicable reporting requirements.”

1.7. Amendment to Section 3.12 of the Credit Agreement. Section 3.12 of the Credit Agreement is
hereby amended to revise the representations and warranties made as of a date earlier than the
Effective Date to be as of the “Amendment No. 1 Effective Date”.

1.8. Amendment to Section 5.13 of the Credit Agreement.

     (a) Section 5.13 of the Credit Agreement is hereby amended by deleting the “and” at the end of
clause (r) thereof; deleting the “.” at the end of clause (s) thereof and replacing it with “;
and”; and adding the following new clause (t) at the end thereof:

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“(t) the portion of the Borrowing Base attributable to Eligible Portfolio Investments
denominated in Canadian dollars or with respect to which (i) the principal operations of
the corresponding Portfolio Company or any assets of such Portfolio Company pledged as
collateral for such Portfolio Investment are primarily located in Canada, (ii) the
corresponding Portfolio Company is organized under the laws of Canada or any province
thereof, or (iii) the corresponding Portfolio Company is domiciled within Canada, shall not
exceed 10% of the Borrowing Base and the Borrowing Base shall be reduced to the extent such
portion would otherwise exceed 10% of the Borrowing Base.”

     (b) Section 5.13 of the Credit Agreement is hereby amended by deleting the first sentence of
the paragraph immediately after new clause (t) of Section 5.13 and replacing it with the following:

“For all purposes of this Section 5.13, (A) all issuers of Eligible Portfolio Investments
that are Affiliates of one another shall be treated as a single issuer (unless such issuers
are Affiliates of one another solely because they are under the common Control of the same
private equity sponsor), and (B) the amount of all Eligible Portfolio Investments
denominated in Canadian dollars shall be converted into the Dollar Equivalent thereof prior
to any other determinations under this Section 5.13.”

1.9. Amendment to Section 6.01(e) of the Credit Agreement. Section 6.01(e) of the Credit Agreement
is hereby amended by deleting the number “$10,000,000”, and replacing it with the number
“$20,000,000”.

1.10. Amendment to Section 6.02(i) of the Credit Agreement. Section 6.02(i) of the Credit Agreement
is hereby amended by deleting the number “$2,000,000”, and replacing it with the number
“$5,000,000”.

1.11. Amendment to Section 6.03 of the Credit Agreement.

     (a) Section 6.03 of the Credit Agreement is hereby amended by deleting the number
“ $5,000,000” in clause (g) thereof, and replacing it with the number “$10,000,000”.

     (b) Section 6.03 of the Credit Agreement is hereby amended by deleting the “and” at the end of
clause (f) thereof; deleting the “.” at the end of clause (g) thereof and replacing it with “;
and”; and adding the following new clause (h) at the end thereof:

“(h) any Subsidiary of the Borrower may be liquidated or dissolved, provided that, in
connection with such liquidation or dissolution, any and all of the assets of such
Subsidiary shall be distributed or otherwise transferred to the Borrower or any wholly
owned Subsidiary Guarantor of the Borrower.”

1.12. Amendment to Section 6.04 of the Credit Agreement. Section 6.04 of the Credit Agreement is
hereby amended by deleting the “and” at the end of clause (g) thereof; deleting the “.” at the end
of clause (h) thereof and replacing it with “; and”; and adding the following new clause (i) at the
end thereof:

“(i) other Investments in an aggregate amount not to exceed $15,000,000.”

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1.13. Amendment to Article VII of the Credit Agreement. Article VII, Sub-section (k) of the Credit
Agreement is hereby amended by deleting the number “$5,000,000”, and replacing it with the number
“$15,000,000”.

1.14. Amendment to Section 9.02(c) of the Credit Agreement. Section 9.02(c) of the Credit Agreement
is hereby amended by deleting the number “$300,000,000”, and replacing it with the number
“$350,000,000”.

1.15. Amendment to Schedules to the Credit Agreement. The Schedules to the Credit Agreement are
hereby amended by deleting Schedules 3.12(a) and 3.12(b) thereto and replacing them with Schedules
3.12(a) and 3.12(b) attached hereto.

SECTION II AMENDMENT TO GUARANTEE AND SECURITY AGREEMENT

2.1. Amendment to Section 1.01 of the Guarantee and Security Agreement. Section 1.01 of the
Guarantee and Security Agreement is hereby amended by adding the following new defined term in the
appropriate alphabetical order:

““Amendment No. 2 Effective Date” means July 8, 2011.”

2.2. Amendment to Section 2 of the Guarantee and Security Agreement. Sections 2.05, 2.07 and 2.09
of the Guarantee and Security Agreement are hereby amended to revise the representations and
warranties made as of a date earlier than the Effective Date to be as of the “Amendment No. 2
Effective Date”.

2.3. Amendment to Annexes to the Guarantee and Security Agreement. The Annexes to the Guarantee and
Security Agreement are hereby amended by deleting Annexes 2.05, 2.07, and 2.09 thereto and
replacing them with Annexes 2.05, 2.07 and 2.09 attached hereto.

SECTION III MISCELLANEOUS

3.1. Conditions to Effectiveness of Amendment. This Amendment shall become effective as of the
date (the “Effective Date”) on which the following conditions are satisfied:

     (a) The Administrative Agent shall have received counterparts of this Amendment duly
executed and delivered by the Borrower, each Subsidiary Guarantor, the Issuing Bank and each
Lender.

     (b) The Administrative Agent and the Issuing Bank shall have received reimbursement for all
of their reasonable out-of-pocket costs and expenses in accordance with Section 3.4 hereto.

     (c) The Administrative Agent shall have received, for the account of each Lender, a
non-refundable amendment fee in the amount of 0.125% of the Commitment of such Lender as of the
Effective Date, which fee shall be distributed by the Administrative Agent to the Lenders
promptly after the Effective Date.

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3.2. Representations and Warranties. To induce the other parties hereto to enter into this
Amendment, the Borrower represents and warrants to the Administrative Agent and each of the Lenders
that, as of the Effective Date and after giving effect to this Amendment:

     (a) This Amendment has been duly authorized, executed and delivered by the Borrower and
each Subsidiary Guarantor party hereto, and constitutes a legal, valid and binding obligation of
the Borrower and each Subsidiary Guarantor party hereto enforceable in accordance with its terms.
The Credit Agreement and the Guarantee and Security Agreement, as amended by the Amendment,
constitute legal, valid and binding obligations of the Borrower and the Subsidiary Guarantors
enforceable in accordance with their respective terms.

     (b) The representations and warranties set forth in Article 3 of the Credit Agreement,
Section 2 of the Guarantee and Security Agreement and the representations and warranties in each
other Loan Document, are true and correct in all material respects (other than any representation
or warranty already qualified by materiality or Material Adverse Effect, which shall be true and
correct is all respects) on and as of the Effective Date or as to any such representations and
warranties that refer to a specific date, as of such specific date, with the same effect as
though made on and as of the Effective Date.

     (c) No Default or Event of Default has occurred and is continuing under the Credit
Agreement.

3.3. Counterparts. This Amendment may be executed in counterparts (and by different parties hereto
on different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Amendment constitutes the entire contract between
and among the parties relating to the subject matter hereof and supersedes any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof. Delivery of
an executed counterpart of this Amendment by telecopy or electronic mail shall be effective as
delivery of a manually executed counterpart of this Amendment.

3.4. Payment of Expenses. The Borrower agrees to pay and reimburse the Administrative Agent and the
Issuing Bank for all of its reasonable out-of-pocket costs and expenses incurred in connection with
this Amendment, including, without limitation, the reasonable fees, charges and disbursements of
legal counsel to the Administrative Agent.

3.5. GOVERNING LAW. THIS AMENDMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

3.6. Incorporation of Certain Provisions. The provisions of Sections 9.01, 9.06, 9.07, 9.09, 9.10
and 9.12 of the Credit Agreement are hereby incorporated by reference.

3.7. Effect of Amendment. Except as expressly set forth herein, this Amendment shall not by
implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and
remedies of the Lenders, the Administrative Agent, the Issuing Bank, the Collateral Agent, the
Borrower or the Subsidiary Guarantors under the Credit Agreement, the Guarantee and Security
Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any
of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement,
the Guarantee and Security Agreement or any other Loan Document, all of which are ratified and
affirmed in all respects and shall continue in full force and effect. Nothing herein

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shall be deemed to entitle any Person to a consent to, or a waiver, amendment, modification or
other change of, any of the terms, conditions, obligations, covenants or agreements contained in
the Credit Agreement, the Guarantee and Security Agreement or any other Loan Document in similar or
different circumstances. This Amendment shall apply and be effective only with respect to the
provisions of the Credit Agreement and the Guarantee and Security Agreement specifically referred
to herein. After the Effective Date, any reference to the Credit Agreement or the Guarantee and
Security Agreement shall mean the Credit Agreement and the Guarantee and Security Agreement, as
applicable, as modified hereby. This Amendment shall constitute a Loan Document.

3.8. Consent and Reaffirmation. (a) Each Subsidiary Guarantor hereby consents to this Amendment and
the transactions contemplated hereby, (b) the Borrower and each Subsidiary Guarantor agree that,
notwithstanding the effectiveness of this Amendment, the Guarantee and Security Agreement and each
of the other Security Documents continue to be in full force and effect, (c) each Subsidiary
Guarantor confirms its guarantee of the Secured Obligations (as defined in the Guarantee and
Security Agreement and which definition, for clarity, incorporates by reference the Obligations
under the Credit Agreement as amended hereby) and the Borrower and each Subsidiary Guarantor
confirm their grant of a security interest in their assets as Collateral for the Secured
Obligations, all as provided in the Loan Documents, and (d) the Borrower and each Subsidiary
Guarantor acknowledge that such guarantee and/or grant continues in full force and effect in
respect of, and to secure, the Secured Obligations.

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

	 	 	 	 	 
	 	FIFTH STREET FINANCE CORP., as Borrower

 	 
	 	By:  	/s/ Bernard D. Berman
 	 
	 	 	Name:  	Bernard D. Berman 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	FSFC HOLDINGS, INC., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Bernard D. Berman
 	 
	 	 	Name:  	Bernard D. Berman 	 
	 	 	Title:  	President 	 
	 

	 	 	 	 	 
	 	FIFTH STREET FUND OF FUNDS LLC, as Subsidiary Guarantor

 	 
	 	By:  	/s/ Bernard D. Berman
 	 
	 	 	Name:  	Bernard D. Berman 	 
	 	 	Title:  	President 	 
	 

[Signature Page to Amendment No. 1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	ING CAPITAL, LLC, as Administrative Agent, Collateral Agent, Issuing Bank and as a Lender

 	 
	 	By:  	/s/ Patrick Frisch
 	 
	 	 	Name:  	Patrick Frisch, CFA 	 
	 	 	Title:  	Managing Director 	 
	 

[Signature Page to Amendment No. 1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA, as a Lender

 	 
	 	By:  	/s/ Tim Stephens
 	 
	 	 	Name:  	Tim Stephens 	 
	 	 	Title:  	Director 	 
	 

[Signature Page to Amendment No. 1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	KEY EQUIPMENT FINANCE, INC., as a Lender

 	 
	 	By:  	/s/ Richard S. Andersen
 	 
	 	 	Name:  	Richard S. Andersen 	 
	 	 	Title:  	Designated Signer 	 
	 

[Signature Page to Amendment No. 1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	MORGAN STANLEY BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Harry Comninellis
 	 
	 	 	Name:  	Harry Comninellis 	 
	 	 	Title:  	Authorized Signatory 	 
	 

[Signature Page to Amendment No. 1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	PATRIOT NATIONAL BANK, as a Lender

 	 
	 	By:  	/s/ Kevin R. Callahan
 	 
	 	 	Name:  	Kevin R. Callahan 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Amendment No.1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as

a Lender

 	 
	 	By:  	/s/ Evelyn Thierry
 	 
	 	 	Name:  	Evelyn Thierry 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                           /s/ Michael Getz
 	 
	 	 	Name:  	Michael Getz 	 
	 	 	Title:  	Vice President 	 

[Signature Page to Amendment No.1 to Amended and Restated Credit Agreement and Amendment No.
2 to

Guarantee and Security Agreement]

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC, as a Lender

 	 
	 	By:  	/s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 	 
	 	 	Title:  	Associate Director 	 
	 
	 	 	 
	 	By:  	/s/  Joselin Fernandes
 	 
	 	 	Name:  	Joselin Fernandes 	 
	 	 	Title:  	Associate Director 	 

[Signature Page to Amendment No.1 to Amended and Restated Credit Agreement and Amendment No. 2 to

Guarantee and Security Agreement]exv10w2

Exhibit 10.2

EXECUTION VERSION

 

 

INCREMENTAL ASSUMPTION AGREEMENT

dated as of July 8, 2011,

relating to the

AMENDED AND RESTATED SENIOR SECURED REVOLVING CREDIT

AGREEMENT

dated as of February 22, 2011,

among

FIFTH STREET FINANCE CORP.,

as Borrower,

The Several Lenders and Agents

from Time to Time Parties Thereto,

and

ING CAPITAL LLC,

as Administrative Agent

 

 

 

 

INCREMENTAL ASSUMPTION AGREEMENT, dated as of July 8, 2011 (this “Assumption Agreement”),
by and among FIFTH STREET FINANCE CORP. (the “Borrower”), FSFC Holdings, Inc.
(“FSFC”), Fifth Street Fund of Funds LLC (“Fifth Street”; collectively with FSFC,
the “Subsidiary Guarantors”), ING CAPITAL LLC, in its capacity as Administrative Agent (the
“Administrative Agent”), and Royal Bank of Canada, as increasing lender (the
“Increasing Lender”) relating to the AMENDED AND RESTATED SENIOR SECURED
REVOLVING CREDIT AGREEMENT dated as of
February 22, 2011 (as amended by the Amendment No.1 to the Amended and Restated Senior Secured
Revolving Credit Agreement and Amendment No. 2 to the Guarantee, Pledge and Security Agreement
dated as of July 8, 2011 and as further amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among the Borrower, the Administrative Agent and the several
banks and other financial institutions or entities from time to time party to the Credit Agreement.

          A. The Borrower has requested that the Increasing Lender provide an additional
Commitment in an aggregate amount equal to $15,000,000 (the “Incremental Commitment”)
pursuant to Section 2.07(f) of the Credit Agreement.

          B. The Increasing Lender is willing to make such an Incremental Commitment to the
Borrower on the terms and subject to the conditions set forth herein and in the Credit Agreement.

          Accordingly, in consideration of the mutual agreements herein contained and other good and valuable
consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto
agree as follows:

     SECTION 1. Defined Terms; Interpretation; Etc. Capitalized terms used and not defined
herein shall have the meanings assigned to such terms in the Credit Agreement. The rules of
construction set forth in Section 1.03 of the Credit Agreement shall apply equally to this
Assumption Agreement. This Assumption Agreement shall be a “Loan Document” for all purposes of the
Credit Agreement and the other Loan Documents.

     SECTION 2. Incremental Commitment. (a) Pursuant to Section 2.07(f) of the Credit
Agreement and subject to the terms and conditions hereof, the Increasing Lender hereby agrees to
make the Incremental Commitment to the Borrower effective on and as of the Effective Date (as
defined below). The Incremental Commitment shall constitute an additional “Commitment” for all
purposes of the Credit Agreement and the other Loan Documents.

 

 

          (b) The terms of the Incremental Commitment shall be the same as the other
Commitments made under the Credit Agreement.

          (c) On the Effective Date, in connection with the adjustments to any outstanding
Loans and participation interests contemplated by Section 2.07(f)(iv) of the Credit Agreement, the
Incremental Lender shall make a payment to the Administrative Agent, for account of the other
Lenders, in an amount calculated by the Administrative Agent in accordance with such section, so
that after giving effect to such payment and to the distribution thereof to the other Lenders in
accordance with such section, the Loans are held ratably by the Lenders in accordance with the
respective Commitments of such Lenders (after giving effect to the Incremental Commitment).

     SECTION 3. Conditions Precedent to Incremental Commitment. This Assumption Agreement,
and the obligations of the Increasing Lender to make the Incremental Commitment, shall become
effective on and as of the Business Day (the “Effective Date”) occurring on or before July 8, 2011
on which the following conditions precedent have been satisfied:

          (a) the Administrative Agent shall have received counterparts of this Assumption
Agreement that, when taken together, bear the signatures of the Borrower, the Subsidiary
Guarantors, the Administrative Agent and the Increasing Lender;

          (b) on the date hereof, each of the conditions set forth or referred to in Section
2.07(f)(i) of the Credit Agreement shall be satisfied, and pursuant to Section 2.07(f)(ii)(x) of
the Credit Agreement the Administrative Agent shall have received a certificate of a duly
authorized officer of the Borrower dated the date hereof certifying as to the foregoing;

          (c) the Administrative Agent shall have received for the account of the Lenders the
amounts, if any, payable under Section 2.14 of the Credit Agreement as a result of the adjustments
of Borrowings pursuant to Section 2(c) of this Assumption Agreement; and

          (d) the Increasing Lender shall have received all documented fees and expenses
related to this Assumption Agreement owing on the date hereof, including an up-front fee in an
amount equal to 0.875% of the Increased Commitment, due to the Increasing Lender on the date
hereof.

     SECTION 4. Representations and Warranties of the Borrower. To induce the other parties
hereto to enter into this Assumption Agreement, the Borrower represents and warrants to the
Administrative Agent and the Increasing Lender that, as of the date hereof:

          (a) This Assumption Agreement has been duly authorized, executed and delivered by the Borrower
and the Subsidiary Guarantors, and constitutes a legal, valid and binding obligation of the
Borrower and the Subsidiary Guarantors in accordance with its terms, except as enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the

2

 

enforcement of creditors’ rights generally and by general equitable principles (whether enforcement
is sought by proceedings in equity or at law).

          (b) Each of the representations and warranties made by the Borrower and the
Subsidiary Guarantors in or pursuant to the Loan Documents are true and correct in all material
respects as if made on such date (except to the extent they relate specifically to an earlier date,
in which case they are true and correct in all material respects as of such earlier date, and
unless a representation or warranty is already qualified by materiality or by Material Adverse
Effect, in which case it is true and correct in all respects).

          (c) No Default or Event of Default has occurred and is continuing on the date hereof
or shall result from the Incremental Commitment.

     SECTION 5. Representations, Warranties and Covenants of the Increasing Lender. The
Increasing Lender (a) represents and warrants that (i) from and after the Effective Date, it shall
have the obligations of a Lender under the Credit Agreement to the extent of its existing
Commitment as increased by the Incremental Commitment, and (ii) it has received a copy such
documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assumption Agreement and to make the Incremental Commitment on the basis of
which it has made such analysis and decision independently and without reliance on the
Administrative Agent or any other Lender; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will continue to perform in
accordance with their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

     SECTION 6. Consent and Reaffirmation. (a) Each Subsidiary Guarantor hereby consents to
this Assumption Agreement and the transactions contemplated hereby, (b) the Borrower and each
Subsidiary Guarantor agree that, notwithstanding the effectiveness of this Assumption Agreement,
the Guarantee and Security Agreement and each of the other Security Documents continue to be in
full force and effect, (c) the Borrower and each Subsidiary Guarantor acknowledge that the terms
“Credit Agreement Obligations,” “Guaranteed Obligations” and “Secured Obligations” (each as defined
in the Guarantee and Security Agreement) include any and all Loans made now or in the future by the
Increasing Lender in respect of the Incremental Commitment and all interest and other amounts owing
in respect thereof under the Loan Documents (including all interest and expenses accrued or
incurred subsequent to the commencement of any bankruptcy or insolvency proceeding with respect to
the Borrower, whether or not such interest or expenses are allowed as a claim in such proceeding),
and (d) each Subsidiary Guarantor confirms its guarantee of the Guaranteed Obligations and the
Borrower and each Subsidiary Guarantor confirm their grant of a security interest in their assets
as Collateral for the Secured Obligations, all as provided in the Loan Documents as originally
executed (and amended prior to the date hereof and supplemented hereby).

3

 

     SECTION 7. Notices. All notices hereunder shall be given in accordance with the provisions
of Section 9.01 of the Credit Agreement.

     SECTION 8. Expenses. The Borrower agrees to pay all reasonable and documented out-of-pocket
expenses incurred by the Administrative Agent in connection with this Assumption Agreement in
accordance with the Credit Agreement, including the reasonable and documented fees, charges and
disbursements of one outside counsel for the Administrative Agent.

     SECTION 9. Counterparts. This Assumption Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same contract. Delivery of an executed counterpart of a signature page
of this Assumption Agreement by facsimile or electronic transmission shall be as effective as
delivery of a manually executed counterpart hereof.

     SECTION 10. Applicable Law; Jurisdiction; Consent to Service of Process; Other. THIS
ASSUMPTION AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS ASSUMPTION AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW
YORK. THE PROVISIONS OF SECTION 9.09 OF THE CREDIT AGREEMENT (AND ALL OTHER APPLICABLE PROVISIONS
OF ARTICLE IX OF THE CREDIT AGREEMENT) ARE HEREBY INCORPORATED BY REFERENCE.

     
SECTION 11. Headings. The headings of this Assumption Agreement are for purposes of
reference only and shall not limit or otherwise affect the meaning hereof.

     SECTION 12. No Third Party Beneficiaries. This Assumption Agreement is intended to be
solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or
create any rights in favor of, any other person or entity. No person or entity other than the
parties hereto shall have any rights under or be entitled to rely upon this Assumption Agreement.

[Remainder of page intentionally left blank]

4

 

          IN WITNESS WHEREOF, the parties hereto have caused this Assumption Agreement to be duly
executed and delivered by their proper and duly authorized representatives as of the day and year
first above written.

	 	 	 	 	 
	 	FIFTH STREET FINANCE CORP., as Borrower

 	 
	 	By:  	/s/ Bernard D. Berman
 	 
	 	 	Name:  	Bernard D. Berman  	 
	 	 	Title:  	President 	 
	 
	 	FSFC HOLDINGS, INC., as Subsidiary Guarantor

 	 
	 	By:  	/s/ Bernard D. Berman
 	 
	 	 	Name:  	Bernard D. Berman  	 
	 	 	Title:  	President 	 
	 
	 	FIFTH STREET FUND OF FUNDS LLC,

 as Subsidiary Guarantor

	 
	 	By:  	/s/ Bernard D. Berman
 	 
	 	 	Name:  	Bernard D. Berman  	 
	 	 	Title:  	President 	 
	 

Signature Page to Incremental Assumption Agreement

 

 

	 	 	 	 	 
	 	ING CAPITAL LLC, as Administrative Agent

 	 
	 	By:  	/s/ Patrick Frisch
 	 
	 	 	Name:  	Patrick Frisch, CFA  	 
	 	 	Title:  	Managing Director 	 
	 

Signature Page to Incremental Assumption Agreement

 

 

	 	 	 	 	 
	 	ROYAL BANK OF CANADA,

 as Increasing Lender

 	 
	 	By:  	/s/ Tim Stephens
 	 
	 	 	Name:  	Tim Stephens  	 
	 	 	Title:  	Director 	 
	 

Signature Page to Incremental Assumption Agreement

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