Document:

FS Energy and Power Fund 8-K

 

Exhibit 10.2

 

 

CONTRIBUTION AGREEMENT

CONTRIBUTION AGREEMENT,
dated as of May 18, 2016 (this “Agreement”), by and between FS Energy and Power Fund, a Delaware statutory trust
(“FSEP”), and Bryn Mawr Funding LLC, a Delaware limited liability company (“Bryn Mawr”).

WITNESSETH:

WHEREAS, FSEP makes
investments in the ordinary course of its business in loans, other financial accommodations and other investments, in each case,
in and/or to certain underlying obligors (collectively, the “Portfolio Investments”); and

WHEREAS, FSEP from
time to time makes certain other investments (including, without limitation, investments in tax blocker subsidiaries) (collectively,
the “Other Investments”) and enters into certain contractual agreements (including, without limitation, reimbursement
agreements) (collectively, the “Contractual Agreements”); and

WHEREAS, FSEP wishes
to contribute certain existing and future Portfolio Investments, Other Investments, Contractual Agreements and the liabilities
and obligations associated with the foregoing, in each case to Bryn Mawr.

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

1.

Contribution.
FSEP hereby contributes to Bryn Mawr, and Bryn Mawr hereby accepts and assumes, the following:

(a)

the Portfolio Investments set forth on Schedule
A attached hereto;

(b)

certain other Portfolio Investments identified
from time to time by FSEP in its sole discretion, whether now owned or hereafter acquired or originated;

(c)

certain Other Investments identified from
time to time by FSEP in its sole discretion, whether now owned or hereafter acquired;

(d)

certain Contractual Agreements identified
from time to time by FSEP in its sole discretion, whether now owned or hereafter acquired; and

(e)

any associated liabilities and obligations
in connection with the foregoing.

2.

Further Assurances.
From time to time after the date of this Agreement, without the payment of any additional consideration, each party hereto shall
execute all such instruments and take all such actions as any other party shall reasonably request in connection with carrying
out and effectuating the intent and purpose hereof and all of the transactions contemplated by this Agreement.

 

    

    	 

    

 

3.

Successors and Assigns.
This Agreement shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto.

4.

No Third Party Beneficiaries.
This Agreement is not intended to and shall not confer upon any person other than the parties hereto any rights or remedies hereunder.

5.

Amendments and Waivers.
This Agreement may not be modified or amended except by an instrument or instruments in writing signed by the party against whom
enforcement of any such modification or amendment is sought.

6.

Counterparts; Electronic
Delivery. This Agreement may be executed in one or more counterparts and by the parties hereto in separate counterparts, each
of which when executed shall be deemed to be an original, and all of which taken together shall constitute one and the same instrument.
Delivery of an executed counterpart of a signature page to this Agreement by electronic means, such as facsimile or portable document
format, shall be as effective as delivery of a manually executed counterpart of this Agreement.

7.

Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction.

8.

Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without reference to
choice of law principles, including all matters of construction, validity and performance, and shall be binding upon the successors
and assigns of the parties hereto.

9.

Headings. Headings
are for convenience only and shall not affect the interpretation of this Agreement.

[Signature pages
follow]

    

    	 

    

 

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

	 	FS ENERGY AND POWER FUND
	 	 
	 	 
	 	By: 	/s/  Gerald F. Stahlecker
	 	Name:

        Title: 
	 Gerald F. Stahlecker
 Executive Vice President

 

	 	BRYN MAWR FUNDING LLC
	 	 
	 	 
	 	By: 	/s/ Gerald F. Stahlecker
	 	Name:

        Title:
	Gerald F. Stahlecker
Executive Vice President

 

 

[Signature page
to Contribution Agreement]FS Energy and Power Fund 8-K

 

Exhibit 10.3

 

 

 

 

 

 

 

INVESTMENT MANAGEMENT AGREEMENT

 

dated as of May 18, 2016

 

BY AND BETWEEN

 

BRYN MAWR FUNDING LLC,

a Delaware limited liability company

 

AND

 

FS ENERGY AND POWER FUND

a Delaware statutory trust

    

    	 

    

 

TABLE OF CONTENTS

	 	 	Page
	1.	General Duties of the Investment Manager	1
	2.	Duties and Obligations of the Investment Manager with Respect to the Administration of the Company	3
	3.	Authority to Bind the Company; No Joint Venture	4
	4.	Limitations Relating to Transferred Assets	5
	5.	Brokerage	6
	6.	Expenses	6
	7.	Services to Other Companies or Accounts; Conflicts of Interest	6
	8.	Duty of Care and Loyalty; Exculpation of Liability	7
	9.	Indemnification	7
	10.	Term of Agreement; Events Affecting the Investment Manager; Survival of Certain Terms; Delegation	9
	11.	Power of Attorney; Further Assurances	10
	12.	Amendment of this Agreement; Assignment	11
	13.	Notices	11
	14.	Binding Nature of Agreement; Successors and Assigns	12
	15.	Entire Agreement	12
	16.	Costs and Expenses	12
	17.	Books and Records	12
	18.	Titles Not to Affect Interpretation	12
	19.	Provisions Separable	13
	20.	Governing Law	13
	21.	Execution in Counterparts	13
	22.	Third Party Rights; Benefits of Agreement	13
	23.	Representations and Warranties of the Investment Manager	13
	24.	Managing REO Assets	14

    i

    	 

    

 

INVESTMENT MANAGEMENT AGREEMENT

This Investment Management
Agreement (the “Agreement”), dated as of May 18, 2016 is made by and between BRYN MAWR FUNDING LLC (the “Company”),
a Delaware limited liability company, and FS ENERGY AND POWER FUND (the “Investment Manager”), a Delaware statutory
trust. Unless otherwise specified, capitalized terms used but not otherwise defined in this Agreement shall have the meanings given
to them in the Limited Liability Company Agreement of the Company dated as of the date hereof (as the same may be amended from
time to time, the “Operating Agreement”).

1.

General Duties
of the Investment Manager.

Subject to the direction
and control of the Company and in a manner consistent with the customary standards, policies and procedures followed by asset managers
of national standing relating to assets of the nature and character of the equity and debt portfolio investments transferred by
the Investment Manager to the Company from time to time (the “Transferred Assets”) and without regard to any
relationship that the Investment Manager or any Affiliate thereof may have with any Person who is an obligor under, or issuer of,
any Transferred Asset (“Obligor”) or any Affiliate of any Obligor (the “Investment Manager Standard”),
the Operating Agreement, the policies adopted or approved by the Company and the terms of this Agreement, the Investment Manager
agrees to supervise and direct the investment and reinvestment of the Transferred Assets, manage, service, administer and make
collections on the Transferred Assets and perform its duties set forth herein, and shall have such other powers with respect to
the investment and leverage related functions of the Company as shall be delegated from time to time to the Investment Manager
by the Company. The Investment Manager shall endeavor to comply in all material respects with all applicable federal and state
laws and regulations, except to the extent that the failure to comply would not have a Material Adverse Effect (as defined below)
on the operations of the Company or the Investment Manager. The Investment Manager is hereby appointed as the Company’s agent
and attorney-in-fact with authority to negotiate, execute and deliver all documents and agreements on behalf of the Company and
to do or take all related acts, with the power of substitution, to acquire, dispose of or otherwise take action with respect to
or affecting the Transferred Assets, including, without limitation:

(a)

identifying and originating
Transferred Assets to be purchased by the Company, selecting the dates for such purchases, and purchasing or directing the purchase
of such Transferred Assets on behalf of the Company;

(b)

identifying Transferred
Assets owned by the Company to be sold by the Company, selecting the dates for such sales, and selling such Transferred Assets
on behalf of the Company;

(c)

negotiating and entering
into, on behalf of the Company, documentation providing for the purchase and sale of Transferred Assets, including without limitation,
confidentiality agreements and commitment letters;

(d)

structuring the terms
of, and negotiating, entering into and/or consenting to, on behalf of the Company, documentation relating to Transferred Assets
to be purchased, held, exchanged or sold by the Company, including any amendments, modifications or supplements with respect to
such documentation;

 

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(e)

exercising, on behalf
of the Company, rights and remedies associated with the Transferred Assets, including without limitation, rights to petition to
place an obligor or issuer in bankruptcy proceedings, to vote to accelerate the maturity of a Transferred Asset, to waive any default,
including a payment default, with respect to a Transferred Asset and to take any other action which the Investment Manager deems
necessary or appropriate in its discretion in connection with any restructuring, reorganization or other similar transaction involving
an obligor or issuer with respect to a Transferred Asset, including without limitation, initiating and pursuing litigation;

(f)

responding to any
offer in respect of Transferred Assets by tendering the affected Transferred Assets, declining such offer, or taking such other
actions as the Investment Manager may determine;

(g)

exercising all voting,
consent and similar rights of the Company on its behalf and advising the Company with respect to matters concerning the Transferred
Assets;

(h)

advising and assisting
the Company with respect to the valuation and rating of the Transferred Assets;

(i)

retaining legal counsel
and other professionals (such as financial advisers) to assist in the structuring, negotiation, documentation, administration and
modification and restructuring of Transferred Assets;

(j)

directing, or causing
to be directed, all Obligors to pay all payments and collections owing to the Company on any Transferred Asset (“Collections”)
directly to the appropriate account of the Company, depositing all Collections received directly by it into the appropriate account
of the Company within one (1) Business Day of receipt thereof and, within three (3) Business Days after receipt into such account,
identifying all available balances in the such account as interest Collections or principal Collections. The Investment Manager
shall direct, or cause to be directed, the related Obligor to make such payments to the appropriate account of the Company and
shall promptly, and in any event no later than the Business Day after receipt thereof, deposit or cause to be deposited all such
amounts into such account (and shall identify such amounts as either principal Collections or interest Collections, as applicable).
For purposes of this Agreement, “Business Day” means any day that is not a Saturday, Sunday or other day on
which banking institutions in New York, New York are authorized or obligated by law, executive order or government decree to remain
closed; and

(k)

causing the Company
to pay, perform and discharge or cause to be paid, performed and discharged promptly (i) all federal, state, county, city, municipal,
local, foreign or other governmental taxes; (ii) all levies, assessments, charges, or claims of any governmental entity or any
claims of statutory lienholders, the nonpayment of which could give rise by operation of law to a Lien on the Transferred Assets
or any other property of the Company and (iii) any such taxes, levies, assessment, charges or claims which constitute a lien or
encumbrance on any property of the Company (collectively, “Charges”) payable by it, except where the failure
to so pay, discharge or otherwise satisfy such Charge would not, individually or in the aggregate, be expected to have a Material
Adverse Effect. For purposes of this Agreement, “Lien” means (i) any mortgage, pledge, hypothecation, assignment
for security, encumbrance, lien (statutory or other), charge, or other security interest of any kind or nature whatsoever (including
any conditional sale or other title retention agreement, and any financing lease having substantially the same economic effect
as any of the foregoing), and (ii) any right of set off or offset, or other liens of any kind or nature whatsoever (including federal
or state Tax (as defined below) liens).

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For the avoidance of
doubt, the Investment Manager, in its capacity as such, does not guarantee the performance of any obligations of any other Person
under this Agreement or any other document to be executed and delivered in connection with this Agreement (“Transaction
Document”).

2.

Duties and Obligations
of the Investment Manager with Respect to the Administration of the Company. 

The Investment Manager
agrees to furnish office facilities and equipment and clerical, bookkeeping and administrative services (other than such services,
if any, provided by the Company's custodian and other service providers) to the Company. To the extent requested by the Company,
the Investment Manager agrees to provide the following administrative services:

(a)

maintain or oversee
the maintenance of the books and records of the Company and maintain (or oversee maintenance by other persons) such other books
and records required by law or for the proper operation of the Company;

(b)

to the extent prepared
or filed by the Company, oversee the preparation and filing of the Company’s federal, state and local income Tax returns
and any other required Tax returns or reports. For purposes of this Agreement, “Taxes” means all taxes, levies,
imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Official
Body, including any interest, additions to tax or penalties applicable thereto, and “Official Body” means any
government or political subdivision or any agency, authority, regulatory body, bureau, central bank, commission, department or
instrumentality of any such government or political subdivision, or any court, tribunal, grand jury or arbitrator, in each case
whether foreign or domestic;

(c)

review the appropriateness
of and arrange for payment of the Company's expenses;

(d)

prepare for review
and approval by officers and other authorized persons of the Company (collectively, the “Authorized Signatories”)
financial information for the Company’s financial statements (if the Company prepares separate financial statements);

(e)

prepare reports relating
to the business and affairs of the Company as may be mutually agreed upon and not otherwise prepared by others;

 

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(f)

make recommendations
to the Company concerning the performance and fees of any of the Company's service providers as the Company may reasonably request
or deem appropriate;

(g)

oversee and review
calculations of fees paid to the Company’s service providers;

(h)

consult with the
Authorized Signatories, and the Company’s independent accountants, legal counsel, custodian and other service providers in
establishing the accounting policies of the Company and monitor financial accounting services;

(i)

determine the amounts
available for distribution as dividends and distributions to be paid by the Company to its Member;

(j)

prepare such information
and reports as may be required under any Financing;

(k)

provide such assistance
to the Company’s custodian, counsel, auditors and other service providers as generally may be required to properly carry
on the business and operations of the Company;

(l)

respond to, or refer
to the Company’s officers or Authorized Signatories, inquiries relating to the Company;

(m)

supervise any other
aspects of the Company’s administration as may be agreed to by the Company and the Investment Manager; and

(n)

from time to time
promptly following receipt thereof, forward additional documents evidencing any assumption, modification, consolidation or extension
of a Transferred Asset to any collateral custodian of the Company.

All services are to
be furnished through the medium of any officers, Authorized Signatories or employees of the Investment Manager or its Affiliates
as the Investment Manager deems appropriate, or any investment adviser to the Investment Manager, in order to fulfill its obligations
hereunder.

The Company shall,
upon demand, reimburse the Investment Manager or its Affiliates for all expenses incurred by them in connection with the performance
of the administrative services described in this Section 2.

3.

Authority to Bind
the Company; No Joint Venture.

(a)

Except as provided
in or pursuant to Sections 1, 4 and 11 hereof, the Investment Manager shall have no authority to bind or obligate
the Company. All acts of the Investment Manager (other than as provided in the Operating Agreement or in Section 1, Section
4 or Section 11 hereof with respect to any Transferred Asset) shall require the Company’s consent and approval
to bind the Company. Nothing in this Agreement shall be deemed to create a joint venture or partnership between the parties with
respect to the arrangements set forth in this Agreement. For all purposes hereof, the Investment Manager shall be deemed to be
an independent contractor and, unless otherwise provided herein or specifically authorized by the Company from time to time, shall
have no authority to act for or represent the Company.

 

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(b)

The Investment Manager
shall act in conformity with the written instructions and directions of the Company delivered in accordance with the terms and
conditions hereof, except to the extent that authority has been delegated to the Investment Manager pursuant to the terms of this
Agreement or the Operating Agreement. The Investment Manager will not be bound to follow any amendment to the Operating Agreement
until it has received written notice thereof and until it has received a copy of the amendment from the Company; provided
that if any such amendment materially or adversely affects the rights or duties of the Investment Manager, the Investment Manager
shall not be obligated to respect or comply with the terms of such amendment unless it consents thereto. Subject to the fiduciary
duty of the Member, if applicable, the Company agrees that it shall not permit any amendment to the Operating Agreement that materially
or adversely affects the rights or duties of the Investment Manager to become effective unless the Investment Manager has been
given prior written notice of such amendment and has consented thereto in writing. The Investment Manager may, with respect to
the affairs of the Company, consult with such legal counsel, accountants and other advisors as may be selected by the Investment
Manager. The Investment Manager shall be fully protected, to the extent permitted by applicable law, in acting or failing to act
hereunder if such action or inaction is taken or not taken in good faith by the Investment Manager in accordance with the advice
or opinion of such counsel, accountants or other advisors. The Investment Manager shall be fully protected in relying upon any
writing signed in the appropriate manner with respect to any instruction, direction or approval of the Company and may also rely
on opinions of the Investment Manager’s counsel with respect to such instructions, directions and approvals. The Investment
Manager shall also be fully protected when acting upon any instrument, certificate or other writing the Investment Manager believes
in good faith to be genuine and to be signed or presented by the proper person or persons. The Investment Manager shall be under
no duty to make any investigation or inquiry as to any statement contained in any such writing and may accept the same as conclusive
evidence of the truth and accuracy of the statements therein contained if the Investment Manager in good faith believes the same
to be genuine.

4.

Limitations Relating
to Transferred Assets.

(a)

Transferred Assets.
Except as otherwise provided in this Section 4, and subject to the requirements of the Operating Agreement and applicable
law, the Investment Manager may cause the Company (which term shall include, for all purposes relating to the purchase and sale
of Transferred Assets and the duties and obligations of the Investment Manager set forth in Section 1 hereof, the Company
and its consolidated subsidiaries, if any) from time to time to purchase Transferred Assets.

(b)

Transaction, Director,
Consulting, Advisory, Closing and Break- up Fees. The Company shall receive its pro-rata share, measured by the amount invested
or proposed to be invested by the Company in any Transferred Asset, of any transaction, director, consulting, advisory, closing
and break-up fees, or similar fees (“Additional Fees”) payable with respect to any Transferred Asset.

 

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5.

Brokerage.

The Investment Manager
shall use commercially reasonable efforts to effect all purchases and sales of securities in a manner consistent with the principles
of best execution, taking into account net price (including commissions) and execution capability and other services which the
broker or other intermediary may provide. In this regard, the Investment Manager may effect transactions which cause the Company
to pay a commission in excess of a commission which another broker or other intermediary would have charged; provided, however,
that the Investment Manager shall have first determined that such commission is reasonable in relation to the value of the brokerage
or research services performed by that broker or other intermediary or that the Company is the sole beneficiary of the services
provided.

6.

Expenses.

Other than as set forth
below, the Company will be responsible for paying all of its expenses. On behalf of the Company, the Investment Manager may advance
payment of any expenses, and the Company shall, upon request, reimburse the Investment Manager therefor within 30 days following
written request from the Investment Manager. Nothing in this Section 6 shall limit the ability of the Investment Manager
to be reimbursed by any Person other than the Company (including issuers or obligors of securities, instruments or obligations
owned by the Company) for expenses incurred by the Investment Manager in connection with the performance of services hereunder.
The Investment Manager shall maintain complete and accurate records with respect to costs and expenses and shall furnish the Company
with receipts or other written vouchers with respect thereto upon request of the Company.

7.

Services to Other
Companies or Accounts; Conflicts of Interest.

(a)

The Investment Manager
and its Affiliates, employees or associates are in no way prohibited from, and intend to, spend substantial business time in connection
with other businesses or activities, including, but not limited to, managing investments, advising or managing entities whose investment
objectives are the same as or overlap with those of the Company, participating in actual or potential investments of the Company,
providing consulting, merger and acquisition, structuring or financial advisory services, including with respect to actual, contemplated
or potential investments of the Company, or acting as a director, officer or creditors’ committee member of, advisor to,
or participant in, any corporation, company, trust or other business entity. The Investment Manager and its Affiliates may, and
expect to, receive fees or other compensation from third parties for any of these activities unrelated to the Company, which fees
will be for the benefit of their own account and not the Company.

(b)

In addition, the
Investment Manager and its Affiliates may manage other investment vehicles and separate accounts (“Other Accounts”)
that invest in assets eligible for purchase by the Company. The Company may have the ability, under certain circumstances, to
take certain actions that would have an adverse effect on Other Accounts. In these circumstances, the Investment Manager and its
affiliated persons will act in a manner believed to be equitable to the Company and such Other Accounts, including co-investment
in accordance with applicable laws, including the conditions of any exemptive relief obtained by the Company and the Investment
Manager. The allocation of investment opportunities among the Company and Other Accounts will be made in good faith pursuant to
the Investment Manager’s written allocation policies. The Investment Manager may combine purchase or sale orders on behalf
of the Company with orders for Other Accounts, and allocate the assets so purchased or sold among such accounts in an equitable
manner. The Company may invest in portfolio companies in which Other Accounts have or are concurrently making the same investment
or a different investment (e.g., an investment that is junior to the Company’s investment). In such situations, the Company
and the Other Accounts may potentially have conflicting interests. If any matter arises that the Investment Manager determines
in its good faith judgment constitutes an actual conflict of interest, the Investment Manager may take such actions as may be
necessary or appropriate to ameliorate the conflict. These actions may include, by way of example and without limitation, disposing
of the asset giving rise to the conflict of interest, appointing an independent fiduciary, or delegating decisions relating to
the asset giving rise to the conflict of interest to a subcommittee of the Investment Manager.

 

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8.

Duty of Care and
Loyalty; Exculpation of Liability.

The Investment Manager
shall exercise its discretion and authority in accordance with applicable law, all customary and usual servicing practices for
assets similar to the Transferred Assets and, to the extent consistent with the foregoing, (i) with reasonable care, using a degree
of skill and diligence not less than that with which the Company or Investment Manager, as applicable, services and administers
assets for its own account or for the account of its Affiliates having similar investment objectives and restrictions, and (ii)
to the extent not inconsistent with clause (i), in a manner consistent with the customary standards, policies and procedures followed
by institutional managers of national standing relating to assets of the nature and character of the Transferred Assets and without
regard to any relationship that the Investment Manager or any Affiliate thereof may have with any underlying Obligor or any Affiliate
of an Obligor.

9.

Indemnification.

(a)

To the fullest extent
permitted by applicable law, the Company shall be held harmless and indemnified by the Investment Manager against any claims, demands,
costs, liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties,
and reasonable and documented out-of-pocket counsel fees incurred by the Company (“Losses”) in connection with
the defense or disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative
or investigative body in which the Company may be or may have been involved as a party or otherwise or with which the Company may
be or may have been threatened, while acting in connection with the establishment, management or operations of the Company or the
management of the Transferred Assets; provided, however, to the fullest extent permitted by applicable law, that
the Company shall not be indemnified hereunder if there has been a determination by a final decision on the merits by a court or
other body of competent jurisdiction before whom the issue of entitlement to indemnification was brought that such Losses have
been primarily attributable to the Company’s willful misfeasance, bad faith, gross negligence in performance, or reckless
disregard, of its obligations; provided further, that the Investment Manager will not be required to indemnify the Company
with respect to any Losses (i) arising out of an action or claim brought against the Company by the Investment Manager or its Affiliates,
or (ii) resulting from the performance or non-performance of the Transferred Assets.

 

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Indemnification under
this Section 9(a) shall survive the termination of this Agreement and shall include fees and expenses of counsel and expenses
of litigation.

If for any reason (other
than the exclusions set forth in the first paragraph of Section 9(a)) the indemnification provided above in Section 9(a)
is unavailable to the Company or is insufficient to hold the Company harmless, then the Investment Manager agrees to contribute
to the amount paid or payable by the Company as a result of such loss, claim, damage or liability in such proportion as is appropriate
to reflect not only the relative benefits received by the Company, on the one hand, and the Investment Manager and its Affiliates,
on the other hand, but also the relative fault of the Company, on the one hand, and the Investment Manager and its Affiliates,
on the other hand, as well as any other relevant equitable considerations.

(b)

(i) To the fullest
extent permitted by applicable law, each of the Investment Manager, and its Affiliates, or any officer, director, member, manager,
employee, stockholder, assign, representative or agent of any such Person (each an “Indemnified Person”, and
collectively, the “Indemnified Persons”) shall be held harmless and indemnified by the Company (solely out
of the Transferred Assets and in accordance with Section 9(b)(v), and not (solely for the purposes of this Agreement) out
of the separate assets of any Member) against any Losses incurred by such Indemnified Person in connection with the defense or
disposition of any action, suit or other proceeding, whether civil or criminal, before any court or administrative or investigative
body in which such Indemnified Person may be or may have been involved as a party or otherwise (other than as authorized by the
trustees of the Member, as the plaintiff or complainant) or with which such Indemnified Person may be or may have been threatened,
while acting in such Person’s capacity as an Indemnified Person in connection with the establishment, management or operations
of the Company or the management of the Transferred Assets; provided, however, that an Indemnified Person shall
not be indemnified hereunder if and to the extent resulting from such Indemnified Person’s bad faith, willful misfeasance,
gross negligence or reckless disregard; provided further, that the Company will not be required to indemnify the
Indemnified Persons with respect to any Losses (i) arising out of an action or claim brought against any Indemnified Person by
the Company or its Affiliates, or (ii) resulting from the performance or non-performance of the Transferred Assets.

(ii)

The Company
shall make advance payments in connection with the expenses of defending any action, suit or other proceeding with respect to which
indemnification might be sought hereunder if the Company receives a written affirmation by the Indemnified Person of the Indemnified
Person’s good faith belief that the standards of conduct necessary for indemnification have been met and a written undertaking
to reimburse the Company unless it is subsequently determined that the Indemnified Person is entitled to such indemnification and
if a majority of the trustees of the Member determine that the applicable standards of conduct necessary for indemnification appear
to have been met. In addition, at least one of the following conditions must be met: (A) the Indemnified Person shall provide adequate
security for its undertaking, (B) the Company shall be insured against losses arising by reason of any lawful advances, or (C)
independent legal counsel in a written opinion, shall conclude, based on a review of readily available facts (as opposed to a full
trial-type inquiry), that there is substantial reason to believe that the Indemnified Person ultimately will be found entitled
to indemnification.

 

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(iii)

The rights accruing
to any Indemnified Person under these provisions shall not exclude any other right to which such Indemnified Person may be lawfully
entitled.

(iv)

Each Indemnified
Person (other than the Investment Manager) shall, in the performance of its duties, be fully and completely justified and protected
with regard to any act or any failure to act resulting from reliance in good faith upon the books of account or other records of
the Company, upon an opinion of counsel, or upon reports made to the Company by any of the Company’s officers or employees
or by any advisor, administrator, manager, distributor, selected dealer, accountant, appraiser or other expert or consultant selected
with reasonable care by the trustees of the Member, officers or employees of the Company, regardless of whether such counsel or
other person may also be a trustee of the Member. The Investment Manager shall, in the performance of its duties, be fully and
completely justified and protected with regard to any act or any failure to act resulting from reliance in good faith upon any
books of account or other records of the Company that were prepared by an agent or other third party, upon an opinion of counsel,
or upon reports made to the Company by any advisor, administrator, manager, distributor, selected dealer, accountant, appraiser
or other expert or consultant selected with reasonable care by the trustees of the Member, officers or employees of the Company,
regardless of whether such counsel or other person may also be a trustee of the Member.

(v)

All determinations
that may be made to make advance payments in connection with the expense of defending or settling any action, suit or other proceeding,
whether civil or criminal, shall be authorized and made (if so authorized and made) in accordance with paragraph (b)(ii) above.

10.

Term of Agreement;
Events Affecting the Investment Manager; Survival of Certain Terms; Delegation.

(a)

This Agreement shall
become effective as of the date hereof and, unless sooner terminated by the Company or the Investment Manager as provided herein,
shall continue in effect during the existence of the Company. Notwithstanding the foregoing, this Agreement may be terminated
(i) at any time by the mutual agreement of the parties hereto or (ii) by the Company without the payment of any penalty, upon
the occurrence of a “cause” event. A “cause” event for purposes of this Section 10(a) shall have
occurred by reason of (x) the conviction (or plea of no contest) for a felony of the Investment Manager, (y) the conviction (or
plea of no contest) for a felony of an officer or a member of the board of trustees of the Investment Manager, if the employment
or other affiliation of such Person so convicted is not terminated by the Investment Manager within 30 days of such conviction
and the Member votes thereafter to invoke this termination provision, or (z) the Investment Manager or an officer or a member
of the board of trustees of the Investment Manager has engaged in gross negligence or willful misconduct with respect to the Company
that has resulted in a Material Adverse Effect on the Company or the Transferred Assets, or has committed a knowing material violation
of securities laws, each as determined by a final decision of a court or binding arbitration decision unless, in the case of such
natural persons, their employment or other affiliation with the Investment Manager is terminated or suspended within 30 days after
discovery by the Investment Manager. The Investment Manager shall promptly provide written notice to the Member upon the occurrence
of a “cause” event.

 

    	 	-9-	 

    	 

    

 

(b)

Notwithstanding anything
herein to the contrary, Sections 6 and 9 of this Agreement shall survive any termination hereof.

(c)

From and after the
effective date of termination of this Agreement, the Investment Manager and its Affiliates shall not be entitled to compensation
for further services hereunder, but shall be paid all compensation and reimbursement of expenses accrued to the date of termination.
Upon such termination and upon request by the Company, the Investment Manager shall deliver as directed copies of all documents,
books, records and other information prepared and maintained by or on behalf of the Company with respect to any Transferred Asset
(“Records”) within five (5) Business Days after demand therefor and a computer tape or diskette (or any other
means of electronic transmission acceptable to the successor investment manager) containing as of the close of business on the
date of demand all of the data maintained by the Investment Manager in computer format in connection with managing the Transferred
Assets. The Investment Manager agrees to use reasonable efforts to cooperate with any successor investment manager in the transfer
of its responsibilities hereunder, and will, among other things, provide upon receipt of a written request by such successor investment
manager any information available to it regarding any Transferred Assets. The Investment Manager agrees that, notwithstanding any
termination, it will reasonably cooperate in any proceeding arising in connection with this Agreement or any Transferred Asset
(excluding any such proceeding in which claims are asserted against the Investment Manager or any Affiliate of the Investment Manager)
upon receipt of appropriate indemnification and expense reimbursement.

(d)

Until a successor
investment manager has commenced investment management activities in the place of FS Energy and Power Fund, FS Energy and Power
Fund shall not resign as Investment Manager hereunder. Notwithstanding anything contained herein to the contrary and to the extent
permitted by applicable law without causing the Investment Manager to have liability, the resignation of the Investment Manager
shall not become effective until another entity shall have assumed the responsibilities and obligations of the Investment Manager.

11.

Power of Attorney;
Further Assurances.

In addition to the
power of attorney granted to the Investment Manager in Section 1 of this Agreement, the Company hereby makes, constitutes
and appoints the Investment Manager, with full power of substitution, as its true and lawful agent and attorney-in-fact, with
full power and authority in its name, place and stead, in accordance with the terms of this Agreement (a) to sign, execute,
certify, swear to, acknowledge, deliver, file, receive and record any and all documents which the Investment Manager reasonably
deems necessary or appropriate in connection with its investment management duties under this Agreement and (b) to (i) subject
to any policies adopted by the Member or the Company with respect thereto, exercise in its discretion any voting or consent rights
associated with any securities, instruments or obligations included in the Company’s assets, (ii) execute proxies,
waivers, consents and other instruments with respect to such securities, instruments or obligations, (iii) endorse, transfer
or deliver such securities, instruments and obligations and (iv) participate in or consent (or decline to consent) to any
modification, work-out, restructuring, bankruptcy proceeding, class action, plan of reorganization, merger, combination, consolidation,
liquidation or similar plan or transaction with regard to such securities, instruments and obligations. To the extent permitted
by applicable law, this grant of power of attorney is irrevocable and coupled with an interest, and it shall survive and not be
affected by the subsequent dissolution or bankruptcy of the Company; provided that this grant of power of attorney will
expire, and the Investment Manager will cease to have any power to act as the Company’s attorney-in-fact, upon termination
of this Agreement in accordance with its terms. The Company shall execute and deliver to the Investment Manager all such other
powers of attorney, proxies, dividend and other orders, and all such instruments, as the Investment Manager may reasonably request
for the purpose of enabling the Investment Manager to exercise the rights and powers which it is entitled to exercise pursuant
to this Agreement. Each of the Investment Manager and the Company shall take such other actions, and furnish such certificates,
opinions and other documents, as may be reasonably requested by the other party hereto in order to effectuate the purposes of
this Agreement and to facilitate compliance with applicable laws and regulations and the terms of this Agreement.

 

    	 	-10-	 

    	 

    

 

12.

Amendment of this
Agreement; Assignment.

No provision of this
Agreement may be amended, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against
which enforcement of the amendment, waiver, discharge or termination is sought. The Investment Manager may not, directly or indirectly,
assign all or any part of its rights and duties under this Agreement to any Person without the prior consent of the Company.

13.

Notices.

Unless expressly provided
otherwise herein, any notice, request, direction, demand or other communication required or permitted under this Agreement shall
be in writing and shall be deemed to have been duly given, made and received if sent by hand or by overnight courier, when personally
delivered, if sent by telecopier, when receipt is confirmed by telephone, or if sent by registered or certified mail, postage prepaid,
return receipt requested, when actually received if addressed as set forth below:

(a)

If to the Company:

Bryn Mawr Funding LLC

c/o FS Energy and Power Fund

201 Rouse Boulevard

Philadelphia, PA 19112

Attention: Gerald F. Stahlecker, Executive Vice President

Tel: (215) 495-1169

Fax: (215) 222-4649

E-mail: jerry.stahlecker@franklinsquare.com

 

    	 	-11-	 

    	 

    

 

(b)

If to the Investment Manager:

FS Energy and Power Fund

201 Rouse Boulevard

Philadelphia, PA 19112

Attention: Gerald F. Stahlecker, Executive Vice President

Tel: (215) 495-1169

Fax: (215) 222-4649

E-mail: jerry.stahlecker@franklinsquare.com

Either party to this Agreement may alter
the address to which communications or copies are to be sent to it by giving notice of such change of address in conformity with
the provisions of this Section 13.

14.

Binding Nature
of Agreement; Successors and Assigns.

This Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns as provided herein.

15.

Entire Agreement.

This Agreement contains
the entire agreement and understanding between the parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature
whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance
or usage of the trade inconsistent with any of the terms hereof.

16.

Costs and Expenses.

The costs and expenses
(including the fees and disbursements of counsel and accountants) incurred in connection with the negotiation, preparation and
execution of this Agreement, and all matters incident thereto, shall be borne by each party hereto.

17.

Books and Records.

In compliance with
the requirements of Rule 31a-3 under the Investment Company Act of 1940, as amended (the “1940 Act”), the Investment
Manager hereby agrees that all records which it maintains for the Company are the property of the Company and further agrees to
surrender promptly to the Company any such records upon the Company’s request. The Investment Manager further agrees to preserve
for the periods prescribed by Rule 31a-2 under the 1940 Act the records maintained by it in its capacity as Investment Manager
that are required to be maintained by Rule 31a-1 under the 1940 Act.

 

    	 	-12-	 

    	 

    

 

18.

Titles Not to
Affect Interpretation.

The titles of sections
contained in this Agreement are for convenience only, and they neither form a part of this Agreement nor are they to be used in
the construction or interpretation hereof.

19.

Provisions Separable.

The provisions of this
Agreement are independent of and separable from each other, and, to the extent permitted by applicable law, no provision shall
be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other or others of them may be invalid
or unenforceable in whole or in part.

20.

Governing Law.

This Agreement shall
be governed by and construed in accordance with the laws of the State of New York.

21.

Execution in Counterparts.

This Agreement may
be executed in separate counterparts, each of which shall be an original and all of which taken together shall constitute one and
the same instrument.

22.

Third Party Rights;
Benefits of Agreement.

None of the provisions
of this Agreement shall be for the benefit of or enforceable by any creditor of the Company or by any creditor of the Member.

23.

Representations
and Warranties of the Investment Manager.

The Investment Manager
represents, warrants and covenants as of the date hereof as to itself:

(a)

Organization and
Good Standing. It has been duly organized and is validly existing as a corporation in good standing under the laws of its jurisdiction
of organization, with power and authority to own its properties and to conduct its business as such properties are currently owned
and such business is currently conducted, and had at all relevant times;

(b)

Due Qualification.
It is duly qualified to do business as a Delaware statutory trust in good standing and has obtained all necessary licenses and
approvals in all jurisdictions where the failure to do so would have a Material Adverse Effect;

(c)

Power and Authority.
It has the power, authority and legal right to execute and deliver this Agreement and to perform its obligations hereunder; and
the execution, delivery and performance of this Agreement has been duly authorized by the Investment Manager by all necessary action;

(d)

Binding Obligations.
This Agreement has been executed and delivered by the Investment Manager and, assuming due authorization, execution and delivery
by the Company, constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms, except
as enforceability may be limited by (A) bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement
of creditors’ rights generally, (B) equitable limitations on the availability of specific remedies, regardless of whether
such enforceability is considered in a proceeding in equity or at law and (C) implied covenants of good faith and fair dealing;

 

    	 	-13-	 

    	 

    

 

(e)

No Violation.
The execution, delivery and performance of this Agreement by the Investment Manager, the Investment Manager’s consummation
of the transactions contemplated hereby and the Investment Manager’s fulfillment of the terms hereof do not (A) conflict
with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default
under, its declaration of trust or bylaws, each as amended, or any material indenture, agreement, mortgage, deed of trust or other
material instrument to which it is a party or by which it or its properties are bound, (B) result in the creation or imposition
of any adverse claim upon any of its properties pursuant to the terms of any such material indenture, agreement, mortgage, deed
of trust or other material instrument (except as may be created pursuant to this Agreement or any other Transaction Document),
or (C) violate in any material respect any applicable law except, in the case of this subclause (C), to the extent that such conflict
or violation would not reasonably be expected to have a material adverse effect on (i) the assets, operations, properties, financial
condition, or business of the Investment Manager; (ii) the ability of the Investment Manager to perform its obligations under this
Agreement or any of the other Transaction Documents; or (iii) the validity or enforceability of this Agreement or any of the other
Transaction Documents (a “Material Adverse Effect”);

(f)

No Proceedings.
There are no proceedings or investigations pending or, to the best of the Investment Manager’s knowledge, threatened against
it, before any Official Body having jurisdiction over it or its properties (A) asserting the invalidity of this Agreement, (B)
seeking to prevent the consummation of any of the transactions contemplated hereby or (C) seeking any determination or ruling that
would reasonably be expected to have a Material Adverse Effect;

(g)

No Consents.
No consent, license, approval, authorization or order of, or registration, declaration or filing with, any Official Body having
jurisdiction over it or any of its properties is required to be made in connection with the execution, delivery or performance
of this Agreement or the consummation of the transactions contemplated hereby, in each case other than (A) consents, licenses,
approvals, authorizations, orders, registrations, declarations or filings which have been obtained or made and continuation statements
and renewals in respect thereof and (B) where the lack of such consents, licenses, approvals, authorizations, orders, registrations,
declarations or filings would not have a Material Adverse Effect;

(h)

Investment Company
Status. It is not required to be registered as an “investment company” within the meaning of the 1940 Act.

24.

Managing REO Assets.

(a)

If, in the reasonable
business judgment of the Investment Manager, it becomes necessary to foreclose upon or repossess from the applicable Obligor any
real property securing any Transferred Asset (each such Transferred Asset, an “REO Asset”), the Investment Manager
shall first cause the Company to transfer and assign such Transferred Asset (or the portion thereof owned by the Company) to a
special purpose vehicle wholly owned by the Company (the “REO Asset Owner”) using a contribution agreement.
The Investment Manager shall cause each REO Asset to be serviced (i) in accordance with applicable laws, (ii) in accordance with
the Investment Manager Standard and (iii) in accordance with the applicable REO Asset Owner’s limited liability company operating
agreement (collectively, the “REO Investment Management Standard”). The Investment Manager will cause all “Distributable
Cash” (or comparable definition set forth in the REO Asset Owner’s organization documents) to be deposited into the
appropriate account of the Company within two (2) Business Days of receipt thereof.

 

    	 	-14-	 

    	 

    

 

(b)

In the event that
title to any Related Property (as defined below) is acquired on behalf of the REO Asset Owner for the benefit of its members in
foreclosure, by deed in lieu of foreclosure or upon abandonment or reclamation from bankruptcy, the deed or certificate of sale
shall be taken in the name of a REO Asset Owner. The Investment Manager shall cause the REO Asset Owner to manage, conserve, protect
and operate each REO Asset for its members solely for the purpose of its prompt disposition and sale.

(c)

Notwithstanding any
provision to the contrary contained in this Agreement, the Investment Manager shall not (and shall not permit the REO Asset Owner
to) obtain title to any property or other assets designated and pledged or mortgaged as collateral to secure repayment of such
Transferred Asset (“Related Property”) as a result of or in lieu of foreclosure or otherwise, obtain title to
any direct or indirect partnership interest in any Obligor pledged pursuant to a pledge agreement and thereby be the beneficial
owner of Related Property, have a receiver of rents appointed with respect to, and shall not otherwise acquire possession of, or
take any other action with respect to, any Related Property if, as a result of any such action, the REO Asset Owner would be considered
to hold title to, to be a “mortgagee-in-possession” of, or to be an “owner” or “operator” of,
such Related Property within the meaning of the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as
amended from time to time, or any comparable state or local environmental law, unless the Investment Manager has previously determined
in accordance with the REO Investment Management Standard, based on an updated Phase I environmental assessment report generally
prepared in accordance with the ASTM Phase I Environmental Site Assessment Standard E 1527-05, as may be amended or, with respect
to residential property, a property inspection and title report, that:

(i)

such Related
Property is in compliance in all material respects with applicable environmental laws; and

(ii)

there are no
circumstances present at such Related Property relating to the use, management or disposal of any hazardous materials for which
investigation, testing, monitoring, containment, clean-up or remediation would reasonably be expected to be required by the owner,
occupier or operator of the Related Property under applicable federal, state or local law or regulation.

(d)

In the event that
the Phase I or other environmental assessment first obtained by the Investment Manager with respect to Related Property indicates
that such Related Property may not be in compliance with applicable environmental laws or that hazardous materials may be present
but does not definitively establish such fact, the Investment Manager shall cause the Company to immediately sell the related loan.

[Remainder of page intentionally left
blank.]

    	 	-15-	 

    	 

    

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

	 	FS ENERGY AND POWER FUND
	 	 
	 	 
	 	By: 	/s/ Gerald F. Stahlecker
	 	Name:

        Title:
	Gerald F. Stahlecker
Executive Vice President

 

	 	BRYN MAWR FUNDING LLC
	 	 
	 	 
	 	By: 	/s/ Gerald F. Stahlecker
	 	Name:

        Title:
	Gerald F. Stahlecker
Executive Vice President

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