Document:

FS Investment Corporation II 8-K

 

Exhibit 10.5

 

EXECUTION COPY

REVOLVING CREDIT AGREEMENT

THIS REVOLVING CREDIT
AGREEMENT, (this “Agreement”) is made as of December 15, 2014, between FS Investment Corporation II, a Maryland
corporation (together with its successors and permitted assigns, the “Lender”), and Schuylkill River LLC, a
Delaware limited liability company (the “Borrower”).

PRELIMINARY STATEMENTS

WHEREAS, from time
to time, the Borrower will sell certain securities (the “Notes”) to Goldman Sachs Bank USA (the “Purchaser”)
pursuant to the September 1996 Version Master Repurchase Agreement, the Annex thereto and the Master Confirmation exchanged thereunder,
each dated as of December 15, 2014, and each between the Borrower and the Purchaser (as each may be amended, restated, supplemented
or otherwise modified, collectively, the “Repurchase Agreement”);

WHEREAS, from time
to time, the Borrower will be required to deliver cash collateral to the Purchaser to satisfy certain margining requirements in
accordance with the terms of and under the Repurchase Agreement and the Borrower desires to borrow from the Lender the amount,
if any, necessary from time to time to satisfy the Borrower’s obligation to deliver such collateral; and

WHEREAS, the Lender
may be willing to make subordinated loans to the Borrower to fund such amounts on the terms and conditions set forth herein.

NOW, THEREFORE,
in consideration of the premises and the mutual covenants and agreements herein contained, the parties hereto agree as follows:

ARTICLE I.

Section 1.1.
Defined Terms. Except as otherwise specified herein or as the context may otherwise require, capitalized terms used but not
otherwise defined herein are defined in the Repurchase Agreement. In addition, the following terms have the following meanings:

“Event
of Default” means any event of default specified in Section 5.1.

“LIBOR
Rate” means, the rate per annum determined as of the first Business Day of each calendar month equal to the rate determined
by the Lender to be the offered rate that appears on the page of the Reuters Screen that displays an average ICE Benchmark Administration
Limited (or any other Person that takes over the administration of such rate) (such page currently being LIBOR01) for deposits
in United States dollars with a one-month period. The LIBOR Rate applicable to Loans hereunder will change monthly on the first
Business Day of each calendar month.

 

    	 

    	 

    

 

“Loan”
means each loan of funds or each advance made to the Borrower by the Lender pursuant to Section 2.1.

“Maturity
Date” means the earlier to occur of (i) the date designated as such in writing by the Borrower and the Lender from time
to time and (ii) the date this Agreement is terminated by the Lender pursuant to Section 5.2; provided, that in no event shall
the Maturity Date occur prior to the date that is 90 days after the Final Repurchase Date under the Repurchase Agreement.

“Scheduled
Expiration Date” means the date that is 364 days after the date hereof, which shall be automatically renewed for one
or more additional, successive terms of 364 days each unless either the Borrower or the Lender sends written notice to the other
party not less than 30 days prior to the next applicable Scheduled Expiration Date of such party’s desire not to extend the
Scheduled Expiration Date for an additional term.

“Spread”
means 0.75%.

ARTICLE II.

Section 2.1.
Loans to Borrower. Subject to the terms and conditions of this Agreement and in reliance on the representations and warranties
set forth herein, the Lender, in its sole discretion, may make Loans to the Borrower, from time to time from the date of this Agreement
to but excluding the Scheduled Expiration Date, in an aggregate principal amount outstanding at any one time not to exceed FOUR
HUNDRED MILLION DOLLARS ($400,000,000), as reduced from time to time as the Maximum Aggregate Facility Size is reduced in accordance
with the Repurchase Agreement. The determination of the Lender to make a Loan will also be subject to the conditions that (and
the Borrower shall not request a Loan unless) (i) no event has occurred and is continuing, or would occur by the borrowing of the
Loan, which constitutes an Event of Default or which, upon the giving of notice, the lapse of time, or both, would constitute an
Event of Default and (ii) the representations and warranties contained in Section 3.1 are true and correct in all material respects
on and as of the date of each such Loan and will continue to be true and correct in all material respects after such Loan is made.

Section 2.2.
Borrower’s Obligations. The Borrower hereby promises to pay in full the unpaid principal amount of the Loans on the Maturity
Date and any and all accrued and unpaid interest on the Loans as more fully set forth in Section 2.4 below. The obligation of the
Borrower to pay the principal of and interest on the Loans shall be absolute and unconditional, shall be binding and, to the fullest
extent permitted by law, enforceable in all circumstances whatsoever and shall not be subject to setoff, recoupment or counterclaim;
provided, however, that the Borrower shall only be obligated to pay principal of and interest on the Loans from distributions of
available funds (if any) after satisfaction of the Borrower’s payment and margin maintenance obligations under the Repurchase
Agreement and, after termination of the Repurchase Agreement, from funds of the Borrower. The Lender shall maintain on its books
and records a register on which it will record each Loan made and each repayment of any Loan and interest thereon. Any such recordation
by the Lender shall be presumptively correct, absent manifest error. Failure to make any such recordation, or any error in such
recordation, shall not affect the Borrower’s obligations hereunder. The register shall be available for inspection by the
Borrower at any reasonable time and from time to time upon reasonable prior notice.

 

    	 

    	 

    

 

Section 2.3.
Requests for Loans. Unless otherwise agreed to by the Lender, the Borrower will give the Lender notice of a request for a Loan
at least one Business Day prior to the day on which the Borrower wishes to receive the Loan. Subject to the terms and conditions
of this Agreement, if agreed to by the Lender, the Lender will make the requested Loan on the Business Day specified in the notice
in immediately available funds in accordance with the Borrower’s payment instructions.

Section 2.4.
Interest. (a) Interest will accrue on the average daily balance of the unpaid principal amount of the Loans, for each day from
the date such Loans are made until they become due or are paid in full, at a rate per annum equal to the sum of the LIBOR Rate
then in effect plus the Spread. Should any principal of, or accrued interest on, a Loan not be paid when due, such amount will
bear interest from its due date until paid in full, at a rate per annum equal to the sum of (i) the LIBOR Rate plus the Spread,
then in effect, plus (ii) 200 basis points (2.00%). In no event will the rate of interest hereunder exceed the maximum rate allowed
by law. A certificate of the Lender as to determination of the LIBOR Rate, the Spread, the calculation of the interest rate therefrom
and the calculation of any interest due and payable will be, absent manifest error, conclusive and binding on the Borrower.

(b)

Interest shall be
payable on each Repurchase Date during the term of this Agreement and on the Maturity Date; provided, that if such day is not a
Business Day the payment date for such period shall be the Business Day immediately following such day (but in each case only to
the extent the Borrower has funds in accordance with Section 2.2 hereof). Interest will be computed on the basis of a year of 360
days and paid for the actual number of days elapsed including the first day but excluding the last day.

Section 2.5.
Repayment and Prepayment of the Loans. The outstanding principal amount of all Loans and all accrued and unpaid interest thereon
will be due and payable in full on the Maturity Date. The Borrower may prepay any outstanding Loan, in whole or in part, at any
time without penalty. Any amounts prepaid may be reborrowed. All payments of principal of and interest on the Loans will be made
in lawful money of the United States, in immediately available funds, to the Lender. If any such payment falls due on a day which
is not a Business Day, such payment will be due on the next following Business Day. Payments received by the Lender will be applied:
first, to accrued and unpaid interest on the Loans, and second, to the principal of the Loans.

Section 2.6.
Transfer Restrictions. The Lender may not transfer any interest in the Loans to persons other than affiliates of the Lender
that are U.S. Persons for U.S. federal income tax purposes. For this purpose, a “non-U.S. person” is a person other
than “U.S. person” as defined in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.

 

    	 

    	 

    

 

ARTICLE III.

Section 3.1.
Representations and Warranties. To induce the Lender to enter into this Agreement and to make Loans in its sole discretion
hereunder, the Borrower represents and warrants as follows:

(a)

It is a limited liability
company duly organized, validly existing and in good standing solely under the laws of the State of Delaware and is duly qualified
to do business, and is in good standing, in every jurisdiction in which the nature of its business requires it to be so qualified;

(b)

It has full power
and authority to enter into the transactions provided for in this Agreement and has been duly authorized to do so by all necessary
and appropriate action and when executed and delivered by it, this Agreement will constitute the legal, valid and binding obligation
of the Borrower enforceable in accordance with its terms, subject, as to enforcement, to (i) the effect of bankruptcy, insolvency
or similar laws affecting generally the enforcement of creditors’ rights, as such laws would apply in the event of any bankruptcy,
receivership, insolvency or similar event applicable to the Borrower and (ii) general equitable principles (whether enforceability
of such principles is considered in a proceeding at law or in equity);

(c)

There does not exist
any default or violation by it of or under any of the terms, conditions or obligations of: (i) its organizational documents; (ii)
any material agreement or other instrument to which it is a party or by which it is bound (other than defaults under the Repurchase
Agreement that the Loan is intended to cure, resolve or alleviate); or (iii) in any material respect, any law, regulation, ruling,
order, injunction, decree, condition or other requirement applicable to or imposed upon it by any law or by any governmental authority,
court or agency; and

(d)

At the time of (and
immediately after) each Loan is made hereunder, (i) the Borrower is solvent, (ii) the Borrower’s cash on hand is sufficient
to satisfy all of its current obligations (other than its obligations under this Agreement and the Repurchase Agreement), (iii)
its capitalization, including its equity, is commercially reasonable and adequate to conduct its business as presently contemplated
and (iv) the financial capacity of the Borrower to meet its financial commitments under this Agreement is adequate.

ARTICLE IV.

Section 4.1.
Compliance with Laws. The Borrower shall comply with all applicable laws, rules and regulations in all material respects.

Section 4.2.
Keeping of Records and Books of Accounts. The Borrower shall maintain and keep proper books and records and accounts which
enable the Borrower to prepare and issue financial statements in accordance with generally accepted accounting principles and as
otherwise may be required by any applicable law, rule or regulation and in which full, true and correct entries shall be made of
all of its dealings and business and financial affairs. The Borrower shall permit the Lender to examine and make excerpts from
such books and records at such times and as often as the Lender may reasonably request. The Borrower shall permit, upon the request
of the Lender, an audit to be conducted of the Borrower’s financial statements and books and records. Any such audit shall
be at the Borrower’s expense and shall be conducted by independent accountants selected by the Lender.

 

    	 

    	 

    

 

Section 4.3.
No Distributions. The Borrower will not make any cash or in-kind distributions to its equity holders unless both before and
after each such distribution the representations and warranties contained in Section 3.1 above would be true and correct.

ARTICLE V.

Section 5.1.
Events of Default. Each of the following shall constitute an Event of Default:

(a)

the Borrower fails
to pay, within five Business Days after it is due and payable, any principal of or interest on any of the Loans; provided, that
for purposes of this Section 5.1(a) only, no principal or interest shall be considered due and payable on a date that is prior
to the Maturity Date; or

(b)

the Borrower fails
to perform or observe any other term or condition of any of this Agreement applicable to it and such event or circumstance, if
capable of being cured, is not cured within 30 days after written notice thereof is given by the Lender to the Borrower; or

(c)

an Event of Bankruptcy
occurs with respect to the Borrower.

Section 5.2.
Remedies. Upon the occurrence of an Event of Default, the Lender may do any one or more of the following (without presentment,
protest or notice of protest, all of which are expressly waived by the Borrower): (i) terminate this Agreement and declare the
principal of and interest on the Loans and all other sums owing by the Borrower to the Lender under this Agreement forthwith due
and payable, whereupon this Agreement will terminate and the principal of, and interest on, the Loans and all such other sums will
become forthwith due and payable; and (ii) subject to Section 5.3, exercise all rights granted pursuant to this Agreement, in such
order and in such manner as the Lender may, in its sole and exclusive judgment, determine.

Section 5.3.
Subordination. Notwithstanding anything contained in this Agreement to the contrary, to the extent that the Lender is deemed
to have any interest in any assets of the Borrower, the Lender agrees that all amounts outstanding hereunder and its interest in
those assets are subordinate in all respects to claims or rights of the Purchaser pursuant to the Repurchase Agreement; provided,
that notwithstanding any rights or remedies available to the Lender under this Agreement, applicable law or otherwise, prior to
the time that all secured indebtedness or other secured obligations owned by the Borrower, including the obligations of the Borrower
under the Repurchase Agreement, shall have been repaid in full, the Lender shall not, directly or indirectly, seek to accelerate
or enforce (judicially or non-judicially) its rights hereunder or assert any claims or interests therein (including, without limitation,
by setoff or notification of account debtors). The Lender agrees that this Agreement constitutes a subordination agreement for
purposes of Section 510(a) of the United States Bankruptcy Code, as amended from time to time (11 U.S.C. §§ 101 et seq.).

 

    	 

    	 

    

 

ARTICLE VI.

Section 6.1.
Amendments and Waivers. Any provision of this Agreement may be amended or waived if, but only if, such amendment or waiver
is in writing and, in the case of an amendment, is signed by all the parties hereto and, in the case of a waiver, is signed by
the party granting the waiver and then such waiver shall be effective only in the specific instance and for the specific purpose
for which given, in each case with the prior written consent of the Purchaser. To the extent the consent of the Lender is required
under this Agreement, the determination as to whether to grant or withhold such consent shall be made by the Lender in its sole
discretion without any implied duty toward any other Person, except as otherwise expressly provided herein or therein.

Section 6.2.
Notices. All notices and other communications provided for hereunder shall, unless otherwise stated herein, be in writing (including
communication by facsimile copy or other electronic means) and mailed, delivered by nationally recognized overnight courier service,
transmitted or delivered by hand, as to each party hereto, at its address set forth on the signature pages hereto or at such other
address as shall be designated by such party in a written notice to the other parties hereto. Each such notice, request or other
communication shall be effective (i) if given by facsimile, when such facsimile is transmitted to the specified facsimile number
and an appropriate confirmation is received, (ii) if given by mail, five days after being deposited in the United States mails,
first class postage prepaid, (iii) if given by recognized courier guaranteeing overnight delivery, the Business Day following such
day after such communication is delivered to such courier or (iv) if given by any other means, when delivered at the address specified
in this Section 6.2.

Section 6.3.
No Waivers; Remedies. No failure or delay by any party hereto in exercising, any right hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.

Section 6.4.
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and permitted assigns, except that no party may assign or otherwise transfer any of its rights
or obligations under this Agreement without the prior written consent of each other party, except as otherwise permitted by this
Agreement, and any such purported assignment without such consent shall be void. Notwithstanding the foregoing, after the date
hereof, Lender may merge with FS Investment Corporation or engage in some other fundamental change transaction the result of which
effectively combines the ownership and/or assets of FS Investment Corporation II and FS Investment Corporation. Notwithstanding
anything to the contrary in this agreement, the parties hereto agree that such merger or fundamental change is permitted hereunder
without the consent of the other party.

 

    	 

    	 

    

 

Section 6.5.
Governing Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH
AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

Section 6.6.
Severability. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law,
such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of
such provisions or the remaining provisions of this Agreement.

Section 6.7.
Submission to Jurisdiction. EACH OF THE PARTIES HERETO HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN THE CITY OF NEW YORK FOR PURPOSES
OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES
HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH
A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO BRING
ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY HERETQ OR ANY OF THEIR PROPERTY IN THE COURTS OF OTHER JURISDICTIONS.

Section 6.8.
Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AMONG ANY OF THEM ARISING OUT OF, CONNECTED WITH, RELATING TO OR INCIDENTAL TO
THE RELATIONSHIP BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT.

Section 6.9.
Bankruptcy Non-Petition and Limited Recourse. Notwithstanding any other provision of this Agreement, the Lender covenants and
agrees that it shall not, prior to the date which is one year and one day (or, if longer, any applicable preference period plus
one day) after the Final Repurchase Date, institute against, or join any other Person in instituting against, the Borrower, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or any similar proceeding under any federal or state
bankruptcy or similar law; provided that nothing in this provision shall preclude or be deemed to stop any other party hereto from
taking any action prior to the expiration of the aforementioned one year and one day period in (i) any case or proceeding voluntarily
filed or commenced by the Borrower or (ii) any involuntary insolvency proceeding filed or commenced against the Borrower by a Person
other than any other party hereto. The obligations of the Borrower under this Agreement are unsecured obligations. The Lender acknowledges
that the Borrower has no assets other than the Notes (subject to the Borrower’s rights and obligations under the Repurchase
Agreement) and all amounts owed hereunder are limited recourse obligations payable solely from available funds generated by the
Notes (subject to the Borrower’s rights and obligations under the Repurchase Agreement). In addition, no recourse shall be
had for any amounts payable or any other obligations arising under this Agreement against any officer, member, director, employee,
partner or security holder of the Borrower or any of its successors or assigns. The provisions of this Section shall survive the
termination of this Agreement.

 

    	 

    	 

    

 

Section 6.10.
Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall
constitute one and the same agreement. Delivery by facsimile or electronic mail of an executed signature page of this Agreement
shall be effective as delivery of an executed counterpart hereof.

Section 6.11.
Integration. This Agreement, including all exhibits, schedules and appendices and other documents attached hereto or incorporated
by reference herein, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all
other negotiations, understandings and representations, oral or written, with respect to the subject matter hereof

Section 6.12.
Section Titles. The section titles contained in this Agreement shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties.

Section 6.13.
Survival. The provisions of this Article VI shall be continuing and shall survive termination of this Agreement.

 

    	 

    	 

    

 

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

	 	SCHUYLKILL RIVER LLC,
	 	as Borrower
	 	By:	  /s/ Gerald F. Stahlecker
	 	Gerald F. Stahlecker
	 	Executive Vice President

 

Address for Notices:

Schuylkill River LLC

Cira Centre

2929 Arch Street, Suite 675

Philadelphia, Pennsylvania
19104

Telephone: (215) 495-1169

Telecopy: (215) 222-4649

Attention: Gerald F. Stahlecker

 

[Signatures continue
on next page.]

 

    	[Schuylkill River Revolving Credit Agreement]

    	 

    

 

[Signatures continued from previous page.]

	 	FS INVESTMENT CORPORATION II,  as Lender
	 	By:	/s/ Gerald F. Stahlecker
	 	 	Gerald F. Stahlecker
	 	 	Executive Vice President

 

Address for Notices:

FS Investment Corporation II

Cira
Centre

2929 Arch
Street, Suite 675

Philadelphia,
Pennsylvania 19104

Telephone:
(215) 495-1169

Telecopy:
(215) 222-4649

Attention:
Gerald F. Stahlecker

 

 

    	[Schuylkill River Revolving Credit Agreement]FS Investment Corporation II 8-K

 

Exhibit 10.6

 

 

EXECUTION COPY

 

 

AMENDED AND RESTATED INVESTMENT MANAGEMENT
AGREEMENT

 

dated as of December 15, 2014

 

BY AND BETWEEN

 

GREEN CREEK LLC,

a Delaware limited liability company

 

AND

 

FS INVESTMENT CORPORATION II,

a Maryland corporation

 

 

 

 

    	 

    	 

    

 

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 Collateral Obligations	5
	5.	Brokerage	6
	6.	Compensation	6
	7.	Expenses	7
	8.	Services to Other Companies or Accounts; Conflicts of Interest	7
	9.	Duty of Care and Loyalty; Exculpation of Liability	8
	10.	Indemnification	8
	11.	Term of Agreement; Events Affecting the Investment Manager; Survival of Certain Terms; Delegation	11
	12.	Power of Attorney; Further Assurances	13
	13.	Amendment of this Agreement; Assignment	14
	14.	Notices	14
	15.	Binding Nature of Agreement; Successors and Assigns	15
	16.	Entire Agreement	15
	17.	Costs and Expenses	16
	18.	Books and Records	16
	19.	Titles Not to Affect Interpretation	16
	20.	Provisions Separable	16
	21.	Governing Law	16
	22.	Execution in Counterparts	16
	23.	Third Party Rights; Benefits of Agreement	16
	24.	Representations and Warranties of the Investment Manager	17
	25.	Managing REO Assets	18
	26.	Subordination; Non-Petition	19
	27.	Confidentiality	20

 

    	-i-

    	 

    

 

AMENDED AND RESTATED INVESTMENT MANAGEMENT
AGREEMENT

This Amended and Restated
Investment Management Agreement (the “Agreement”), dated as of December 15, 2014 is made by and between GREEN
CREEK LLC (the “Company”), a Delaware limited liability company and FS INVESTMENT CORPORATION II (together with
its successors and permitted assigns, the “Investment Manager”), a Maryland corporation. 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 November 5, 2014 (as the same may be amended from time to time, the “Operating
Agreement”), or if not defined therein, shall have the meanings given to them in the Amended and Restated Sale and Contribution
Agreement dated as of the date hereof by and among FS Investment Corporation II and Green Creek LLC (as the same may be amended
from time to time, the “Sale and Contribution Agreement”), or if not defined therein, shall have the meanings
given to them in the Indenture dated as of December 15, 2014 by and between the Company and Citibank, N.A. (as the same may be
amended from time to time, the “Indenture”). This Agreement amends and restates in its entirety the Investment
Management Agreement, dated as of November 5, 2014, between the Investment Manager and the Company.

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 Collateral Obligations and without regard to any relationship
that the Investment Manager or any Affiliate thereof may have with any Obligor or any Affiliate of any Obligor, the Operating Agreement,
the policies adopted or approved by the Company, the terms of the Indenture and the terms of this Agreement (the “Investment
Manager Standard”), the Investment Manager agrees to supervise and direct the investment and reinvestment of the Collateral
Obligations, manage, service, administer and make collections on the Collateral Obligations and perform its duties set forth herein
and, on behalf of the Company, those investment-related duties and functions assigned to the Company and the Investment Manager
under the Indenture, 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. 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 Collateral Obligations, including, without limitation:

(a)

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

 

    	-1-

    	 

    

 

(b)

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

(c)

negotiating and
entering into, on behalf of the Company, documentation providing for the purchase and sale of Collateral Obligations, 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 Collateral Obligations
to be purchased, held, exchanged or sold by the Company, including any amendments, modifications or supplements with respect to
such documentation;

(e)

exercising, on behalf
of the Company, rights and remedies associated with the Collateral Obligations, including without limitation, rights to petition
to place an obligor or issuer in bankruptcy proceedings, to vote to accelerate the maturity of a Collateral Obligation, to waive
any default, including a payment default, with respect to a Collateral Obligation 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 Collateral Obligation, including without limitation, initiating and
pursuing litigation;

(f)

responding to any
offer in respect of Collateral Obligations by tendering the affected Collateral Obligations, 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 Collateral
Obligations;

(h)

advising and assisting
the Company with respect to the valuation and rating of the Collateral Obligations;

(i)

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

(j)

directing, or causing
to be directed, all Obligors to pay all payments and collections owing to the Company on any Collateral Obligation (“Collections”)
directly to the appropriate account of the Company (including any accounts required to be established pursuant to the Indenture),
depositing all Collections received directly by the Company into the appropriate accounts of the Company within one (1) Business
Day of receipt thereof and, within three (3) Business Days after receipt into such accounts, identifying all available balances
in the such account as interest Collections or principal Collections. If notwithstanding the foregoing the Investment Manager at
any time thereafter receives any Collections or any other proceeds of any Collateral Obligations constituting interest Collections
or principal Collections, the Investment Manager may direct, or cause to be directed, the related Obligor to make such payments
to the appropriate accounts 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 accounts (and shall identify such amounts as either principal Collections
or interest Collections, as applicable);

 

    	-2-

    	 

    

 

(k)

undertaking the
obligations of the Investment Manager under the Indenture;

(l)

in the Investment
Manager’s discretion, performing such actions on behalf of the Company permitted in the Indenture and making such determinations
as necessary (in the Investment Manager’s discretion) to carry out the Company’s business under the Indenture; and

(m)

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 (including taxes owed to the PBGC at the time due and payable); (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 Collateral Obligations 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 (as defined below).

For the avoidance
of doubt, the Investment Manager does not guarantee the performance of any obligations of any other Person under any 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;

(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);

 

    	-3-

    	 

    

 

(e)

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

(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 (for so long as the Notes issued
under the Indenture remain Outstanding, all in accordance with, and subject to the express terms and conditions set forth in, the
Indenture);

(j)

prepare such information
and reports as may be required under the Indenture;

(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 Collateral Obligation 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 in order to fulfill its obligations hereunder.

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

 

    	-4-

    	 

    

 

3.

Authority to
Bind the Company; No Joint Venture.

(a)

Except as provided
in or pursuant to Sections 1, 4 and 12 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 Indenture, the Operating Agreement or
in Section 1 or Section 12 hereof with respect to any Collateral Obligation) 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.

(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 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, the Company agrees that it shall not permit any amendment to the Operating Agreement that materially 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 Collateral Obligations.

(a)

Collateral Obligations.
Except as otherwise provided in this Section 4 and except in accordance with the Investment Management Standard,
and subject to the requirements of the Indenture, the Operating Agreement, the Sale and Contribution 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 Collateral
Obligations 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 Collateral Obligations.

 

    	-5-

    	 

    

 

(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 Collateral Obligation, of any transaction, director, consulting, advisory,
closing and break-up fees, or similar fees (“Additional Fees”) payable with respect to any Collateral Obligation.
Notwithstanding anything herein or in the Operating Agreement to the contrary, to the extent that any Additional Fees with respect
to the Company’s share of such Investment are paid to the Investment Manager or any of its Affiliates, at the election of
the Investment Manager, such amount will first be applied to reimburse the Investment Manager or its Affiliates for their out of
pocket expenses in connection with the transaction giving rise to such fees and 100% of the balance will be applied to reduce the
subsequent installments of the Management Fee (as defined below).

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.

Compensation.

The Company agrees
to pay to the Investment Manager, on each Payment Date, and the Investment Manager agrees to accept as compensation for all services
rendered by the Investment Manager as such, an amount equal to 0.35% per annum of the aggregate principal balance of all Collateral
Obligations measured as of the beginning of the Due Period preceding such Payment Date (the “Management Fee”)
and payable in accordance with the Priority of Payments as described in the Indenture on such Payment Date. The Management Fees
will be calculated on the basis of a calendar year consisting of 360 days and the actual number of days elapsed.

If on any Payment
Date there are insufficient funds to pay any Management Fee then due in full in accordance with the Priority of Payments, or if
on or prior to any Payment Date the Investment Manager elects (by delivering notice of such election to the Trustee and the Collateral
Administrator) to defer all or any portion of the Management Fee due or to become due on such Payment Date, the amount not so paid
or elected to be deferred shall be deferred and shall be payable on the first succeeding Payment Date on which any funds are available
therefor in accordance with the Priority of Payments, unless deferred again. The Investment Manager shall have the right, at its
sole option, to waive all or a portion of any accrued and unpaid Management Fee at any time by delivering notice thereof to the
Trustee, and directing the Trustee to apply such amounts as Interest Proceeds or as Principal Proceeds for application in accordance
with the Priority of Payments. Notwithstanding the above or any other provision of this Agreement, all of the obligations of the
Company under this Agreement are limited recourse obligations payable solely from Collateral granted to the Trustee pursuant to
the Granting clauses of the Indenture. No recourse shall be had for the payment of any amount owing in respect of this Agreement
against any other asset of the Company or against any officer, director, employee, partner, member, shareholder or incorporator
of the Company. The obligations of the Company under the Notes, this Agreement and the Indenture are limited recourse obligations
of the Company payable solely from the Collateral, and following realization of the Collateral and reduction thereof to zero, all
obligations and all claims against the Company hereunder or arising in connection herewith shall be extinguished and shall not
thereafter revive.

 

    	-6-

    	 

    

 

7.

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 7 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 out-of-pocket 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.

8.

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.

 

    	-7-

    	 

    

 

9.

Duty of Care
and Loyalty; Exculpation of Liability.

The Investment Manager
shall exercise its discretion and authority in accordance with the Investment Management Standard.

10.

Indemnification.

(a)

The Investment Manager
assumes no responsibility under this Agreement other than to render the services called for hereunder and under the terms of the
Indenture applicable to it with reasonable care and in good faith and, subject to the standard of conduct described in the next
succeeding sentence, shall not be responsible for any action of the Company or the Trustee in following or declining to follow
any advice, recommendation or direction of the Investment Manager. The Investment Manager and its Affiliates and their respective
members, managers, directors, officers, stockholders, employees and agents shall not be liable to the Company, the Trustee, any
Secured Party or the Holders of the Notes or any other Persons for any Losses (as defined below) incurred, or for any decrease
in the value of the Collateral or the Notes, as a result of the actions taken or recommended, or for any omissions, by the Investment
Manager or its Affiliates or their respective members, managers, directors, officers, stockholders, employees or agents under this
Agreement, except by reason of acts or omissions constituting bad faith, fraud, willful misconduct or gross negligence in the performance
of its obligations hereunder and under the applicable terms of the Indenture. Notwithstanding anything in this Agreement or the
Indenture to the contrary, any obligation of the Investment Manager to apply commercially reasonable efforts in purchasing and
disposing of Collateral Obligations and Eligible Investments and the performance of its other duties under this Agreement shall
permit the Investment Manager to take into account its investment decision-making process and any other considerations it deems
appropriate. The Investment Manager and its Affiliates and their respective members, managers, directors, officers, stockholders,
employees and agents shall be entitled to indemnification by the Company in accordance with Section 10(b) and the Priority of Payments.
The Investment Manager shall indemnify and hold harmless (the Investment Manager, in such case the “Indemnifying Person”)
the Company and its Affiliates and their respective members, managers, directors, officers, stockholders, employees and agents
(each, an “Indemnified Person”) from and against any and all expenses, losses, damages, liabilities, demands,
charges or claims of any nature whatsoever (including reasonable attorneys’ fees and expenses) (collectively, “Losses”),
as incurred, in respect of or arising from acts or omissions constituting, and determined in a final judicial proceeding to constitute,
bad faith, fraud, willful misconduct or gross negligence in the performance by the Investment Manager of its obligations hereunder
and under the applicable terms of the Indenture.

 

    	-8-

    	 

    

 

(b)

The Company shall
indemnify and hold harmless (the Company, in such case the “Indemnifying Person”) the Investment Manager and
its Affiliates and their respective members, managers, directors, officers, stockholders, employees and agents (each, an “Indemnified
Person”) from and against any and all Losses, as incurred, in respect of or arising from (i) the issuance of the Notes,
(ii) the transactions, duties and obligations described in the Indenture or this Agreement, or (iii) any action or failure to act
by any Indemnified Person which has not been determined in a final judicial proceeding to constitute bad faith, fraud, willful
misconduct or gross negligence of the Investment Manager’s duties under this Agreement or the Indenture. The obligations
of the Company under this Section 10 to indemnify any Indemnified Person for any Losses will be payable solely out of the
Collateral in accordance with the Priority of Payments.

The foregoing provisions,
however, shall not be construed to relieve any Person of any liability to the extent that such liability may not be waived, modified
or limited under applicable law.

(c)

An Indemnified Person
shall (or, solely in the case of Investment Manager as Indemnified Person, with respect to the Investment Manager’s Affiliates
and the members, managers, directors, officers, stockholders, employees and agents of the Investment Manager and its Affiliates,
the Investment Manager shall cause such Indemnified Person to) promptly notify the Indemnifying Person if the Indemnified Person
receives a complaint, claim, compulsory process or other notice of any loss, claim, damage or liability giving rise to a claim
for indemnification under this Section 10, but failure so to notify the Indemnifying Person (i) shall not relieve such Indemnifying
Person from its obligations under Section 10(b) unless and to the extent that it did not otherwise learn of such action
or proceeding and to the extent such failure results in the forfeiture by the Indemnifying Person of substantial rights and defenses
and (ii) shall not, in any event, relieve the Indemnifying Person of any obligations to any Person entitled to indemnity pursuant
to Section 10(b) other than the indemnification obligations provided for in Section 10(b).

(d)

With respect to any
claim made or threatened against an Indemnified Person, or compulsory process or request served upon such Indemnified Person for
which such Indemnified Person is or may be entitled to indemnification under this Section 10, such Indemnified Person shall
(or, solely in the case of Investment Manager as Indemnified Person, with respect to the Investment Manager’s Affiliates
and the members, managers, directors, officers, stockholders, employees and agents of the Investment Manager and its Affiliates,
the Investment Manager shall cause such Indemnified Person to), at the Indemnifying Person’s expense:

 

(i) give written notice
to the Indemnifying Person of such claim within ten (10) days after such claim is made or threatened, which notice shall specify
in reasonable detail the nature of the claim and the amount (or an estimate of the amount) of the claim; provided, that failure
to give notice shall not relieve the Indemnifying Person of its obligation hereunder, unless the Indemnifying Person is materially
prejudiced or otherwise forfeits substantial rights or defenses by reason of such failure;

 

    	-9-

    	 

    

 

(ii) provide the Indemnifying Person such information and
cooperation with respect to such claim as the Indemnifying Person may reasonably require, including, but not limited to, making
appropriate personnel available to the Indemnifying Person at such reasonable times as the Indemnifying Person may request;

 

(iii) cooperate
and take all such steps as the Indemnifying Person may reasonably request to preserve and protect any defense to such claim;

 

(iv) in
the event suit is brought with respect to such claim, upon reasonable prior notice, afford to the Indemnifying Person the right,
which the Indemnifying Person may exercise in its sole discretion and at its expense, to participate in the investigation, defense
and settlement of such claim;

 

(v) neither
incur any material expense to defend against nor release or settle any such claim or make any admission with respect thereto (other
than routine or incontestable admissions or factual admissions the failure to make which would expose such Indemnified Person
to unindemnified liability) without the prior written consent of the Indemnifying Person; provided, that the Indemnifying Person
shall have advised such Indemnified Person that such Indemnified Person is entitled to be indemnified hereunder with respect to
such claim; and

 

(vi) upon reasonable
prior notice, afford to the Indemnifying Person the right, in its sole discretion and at its sole expense, to assume the defense
of such claim, including, but not limited to, the right to designate counsel and to control all negotiations, litigation, arbitration,
settlements, compromises and appeals of such claim; provided, that if the Indemnifying Person assumes the defense of such
claim, it shall not be liable for any fees and expenses of counsel for any Indemnified Person incurred thereafter in connection
with such claim except that if such Indemnified Person reasonably determines that counsel designated by the Indemnifying Person
has a conflict of interest, such Indemnifying Person shall pay the reasonable fees and disbursements of one counsel (in addition
to any local counsel) separate from its own counsel for all Indemnified Persons in connection with any one action or separate
but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances; provided,
further, that prior to entering into any final settlement or compromise, such Indemnifying Person shall seek the consent
of the Indemnified Person and use its best efforts in the light of the then prevailing circumstances (including, without limitation,
any express or implied time constraint on any pending settlement offer) to obtain the consent of such Indemnified Person as to
the terms of settlement or compromise. If an Indemnified Person does not consent to the settlement or compromise within a reasonable
time under the circumstances and such settlement or compromise includes a full release of all claims and does not include any
admission of liability or wrongdoing by the Indemnified Person, the Indemnifying Person shall not thereafter be obligated to indemnify
the Indemnified Person for any amount in excess of such proposed settlement or compromise.

 

    	-10-

    	 

    

 

(e)

No Indemnified Person
shall, without the prior written consent of the Indemnifying Person, which consent shall not be unreasonably withheld or delayed,
settle or compromise any claim giving rise to a claim for indemnity hereunder, or permit a default or consent to the entry of any
judgment in respect thereof, unless such settlement, compromise or consent includes, as an unconditional term thereof, the giving
by the claimant to the Indemnifying Person of a release from liability substantially equivalent to the release given by the claimant
to such Indemnified Person in respect of such claim.

(f)

In the event that
any Indemnified Person waives its right to indemnification hereunder, the Indemnifying Person shall not be entitled to appoint
counsel to represent such Indemnified Person nor shall the Indemnifying Person reimburse such Indemnified Person for any costs
of counsel to such Indemnified Person.

11.

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 for the term of the Company. Notwithstanding the foregoing, this Agreement may be terminated by the Company
without the payment of any penalty, upon the occurrence of a “cause” event.

A “cause”
event for purposes of this Section 11(a) shall have occurred by reason of:

 

(i)
the conviction (or plea of no contest) for a felony of the Investment Manager,

 

(ii)
the conviction (or plea of no contest) for a felony of an officer or a member of the board of directors 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;

 

(iii)
the Investment Manager or an officer or a member of the board of directors of the Investment Manager has engaged in gross
negligence or willful misconduct with respect to the Company or willfully violates or willfully breaches any provision of
this Agreement, the Collateral Administration Agreement or the Indenture applicable to it (including, without limitation, any
representation contained herein) in each case that has resulted in a material adverse effect on the Company or the Collateral
Obligations, 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;

 

    	-11-

    	 

    

 

(iv)
the Investment Manager shall breach any provision of this Agreement or any term of the Indenture or Collateral
Administration Agreement applicable to it which breach has a material adverse effect on the Holders of the Notes and the
Investment Manager fails to cure such breach (if capable of being cured) within 60 days of its becoming aware of, or its
receipt of notice from the Company or the Trustee of, such breach or, if such breach is capable of cure but not within 60
days, the Investment Manager fails to cure such breach within the period in which a reasonably diligent person could cure
such breach (but in no event more than 120 days);

 

(v)
the Investment Manager is wound up or dissolved or there is appointed over it or a substantial portion of its assets a
receiver, administrator, administrative receiver, trustee or similar officer; or the Investment Manager (A) ceases to be able
to, or admits in writing its inability to, pay its debts as they become due and payable, or makes a general assignment for
the benefit of, or enters into any composition or arrangement with, its creditors generally; (B) applies for or consents (by
admission of material allegations of a petition or otherwise) to the appointment of a receiver, trustee, assignee, custodian,
liquidator or sequestrator (or other similar official) of the Investment Manager or of any substantial part of its properties
or assets, or authorizes such an application or consent, or proceedings seeking such appointment are commenced without such
authorization, consent or application against the Investment Manager and continue undismissed for 60 days; (C) authorizes or
files a voluntary petition in bankruptcy, or applies for or consents (by admission of material allegations of a petition or
otherwise) to the application of any bankruptcy, reorganization, arrangement, readjustment of debt, insolvency or
dissolution, or authorizes such application or consent, or proceedings to such end are instituted against the Investment
Manager without such authorization, application or consent and are approved as properly instituted and remain undismissed for
60 days or result in adjudication of bankruptcy or insolvency; or (D) permits or suffers all or any substantial part of its
properties or assets to be sequestered or attached by court order and the order remains undismissed for 60 days; or

 

(vi) the occurrence
and continuation of any Event of Default under the Indenture that results from any breach by the Investment Manager of its duties
hereunder or under the Indenture which breach or default is not cured within any applicable cure period. 

The Investment Manager
shall promptly provide written notice to the Member, the Company and the Trustee upon the occurrence of a “cause” event.

(b)

Notwithstanding
anything herein to the contrary, Sections 7, 10 and 26 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, or 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 Collateral Obligation
(“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 Collateral
Obligations. 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 Collateral Obligations. The Investment Manager agrees that, notwithstanding
any termination, it will reasonably cooperate in any proceeding arising in connection with this Agreement, the Indenture or any
Collateral Obligation (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.

 

    	-12-

    	 

    

 

(d)

Until a successor
investment manager has commenced investment management activities in the place of FS Investment Corporation II, FS Investment Corporation
II 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.
Notwithstanding the foregoing, after the date hereof, the Investment Manager may merge with FS Investment Corporation or engage
in some other fundamental change transaction the result of which effectively combines the ownership and/or assets of FS Investment
Corporation II and FS Investment Corporation. Notwithstanding anything to the contrary in this agreement, the parties hereto agree
that such merger or fundamental change shall not constitute a resignation hereunder.

(e)

Following the occurrence
and continuance of an Event of Default under the Indenture or following the occurrence and continuance of a Financing Termination
Event and, for so long as the Notes issued under the Indenture remain Outstanging, the Investment Manager shall obtain the written
consent of a Majority of the Noteholders before acting on behalf of, or otherwise directing, the Company, the Trustee or any other
person in connection with an acquisition or sale of a Collateral Obligation pursuant to any provision of the Indenture. For purposes
of this Section 11(e), a “Financing Termination Event” shall mean, to the extent that all of the Notes
are subject to a repurchase financing transaction, an event that shall occur if the related purchaser thereunder exercises remedies
in connection therewith and terminates such repurchase financing transaction and becomes the sole owner of such Notes. A Financing
Termination Event shall terminate (and will no longer be continuing for purposes of this Section 11(e)) if the related purchaser
under the repurchase financing transaction no longer owns all of the Notes.

 

    	-13-

    	 

    

 

12.

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.

13.

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 and, for so long as the Notes issued under the Indenture
remain Outstanding, together in each case with the written consent of a Majority of the Noteholders. If the Company has outstanding
any securities rated by a rating agency, the Company shall promptly provide a copy of any such amendment or waiver to such rating
agency. 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 and, for so long as the Notes issued under the Indenture remain Outstanding,
a Majority of the Noteholders. Notwithstanding the foregoing, after the date hereof, the Investment Manager may merge with FS Investment
Corporation or engage in some other fundamental change transaction the result of which effectively combines the ownership and/or
assets of FS Investment Corporation II and FS Investment Corporation. Notwithstanding anything to the contrary in this agreement,
the parties hereto agree that such merger or fundamental change is permitted hereunder without the consent of the Company or the
Majority of Noteholders, and FS Investment Corporation may assume FS Investment Corporation II’s obligations hereunder.

14.

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:

 

    	-14-

    	 

    

 

(a)

If to the Company:

Green Creek LLC

c/o FS Investment Corporation II

2929 Arch Street, Suite 675

Philadelphia, PA 19104

Attention: Gerald F. Stahlecker, Executive
Vice President

Tel: (215) 495-1169

Fax: (215) 222-4649

(b)

If to the Investment
Manager:

FS Investment Corporation II

2929 Arch Street, Suite 675

Philadelphia, PA 19104

Attention: Gerald F. Stahlecker, Executive
Vice President

Tel: (215) 495-1169

Fax: (215) 222-4649

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 14.

15.

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.

16.

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. For so long as the Notes issued under the Indenture remain Outstanding,
in the event that this Agreement requires any action to be taken with respect to any matter and the Indenture requires that a different
action be taken with respect to such matter, and such actions are mutually exclusive, the provisions of the Indenture in respect
thereof shall control.

Notwithstanding any
term or condition hereof, the Investment Manager is not and shall not be considered a party to the Indenture and shall only have
the obligations expressly set forth herein and in the Indenture pursuant to Section 7.9(b) of the Indenture. None of the Trustee,
any Secured Party or any Noteholder shall have any right or claim arising out of any action or failure to act by the Investment
Manager hereunder (other than as a result of the assignment by the Company of certain of its rights hereunder to secure repayment
of the Notes pursuant to the Grant under the Indenture). The express terms hereof control and supersede any course of performance
and/or usage of the trade inconsistent with any of the terms hereof. This Agreement may not be modified or amended other than by
an agreement in writing by the parties hereto. The provisions of Article VIII of the Indenture relating to the requirement that
the Investment Manager consent to any amendments thereof are incorporated in this Agreement.

 

    	-15-

    	 

    

 

17.

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.

18.

Books and Records.

In compliance with
the requirements of Rule 31a-3 under 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.

19.

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.

20.

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.

21.

Governing Law.

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

22.

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.

 

    	-16-

    	 

    

 

23.

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 (other
than as a result of the assignment by the Company of certain of its rights hereunder to secure repayment of the Notes pursuant
to the Grant under the Indenture).

24.

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 Maryland corporation 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 (as herein defined);

(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 corporate
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;

(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 articles of amendment and restatement or amended and restated bylaws, 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 existing law or regulation binding on the Investment Manager 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”).

 

    	-17-

    	 

    

 

(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 governmental authority
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;

25.

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 issuer or
Obligor of a Collateral Obligation any real property securing any Collateral Obligation (each such Collateral Obligation, an “REO
Asset”), the Investment Manager shall first cause the Company to transfer and assign such Collateral Obligation (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 Management 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.

(b)

In the event that
title to any Related Property (as hereinafter defined) 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.

 

    	-18-

    	 

    

 

(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 Collateral Obligation (“Related Property”) as a result of or in lieu of foreclosure or otherwise, obtain
title to any direct or indirect partnership interest in any issuer or Obligor of a Collateral Obligation 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.

26.

Subordination; Non-Petition.

The Investment Manager
agrees that the payment of all amounts to which it is entitled pursuant to this Agreement shall be subordinated to the extent set
forth in, and the Investment Manager agrees to be bound by the provisions of, Article XI of the Indenture and each of the Investment
Manager and Company hereby consents to the assignment of this Agreement as provided in Article XV of the Indenture and the Investment
Manager agrees to the provisions of Section 15.1(f) of the Indenture.

 

    	-19-

    	 

    

 

Notwithstanding any
provision of any Transaction Document to the contrary, the Investment Manager agrees not to institute against, or join any other
Person in instituting against, the Company any bankruptcy, reorganization, arrangement, insolvency, winding up, moratorium or liquidation
Proceedings or other Proceedings under U.S. federal or state bankruptcy or similar laws, or the similar laws of any other applicable
jurisdiction until at least one year (or, if longer, the applicable preference period then in effect) plus one day after the payment
in full of all Notes issued under the Indenture. Nothing in this Section 26 shall preclude, or be deemed to stop, the Investment
Manager (i) from taking any action prior to the expiration of the aforementioned period in connection with (A) any insolvency case
or Proceeding voluntarily filed or commenced by the Company or (B) any involuntary insolvency Proceeding filed or commenced by
a person other than the Investment Manager or its Affiliates or (ii) from commencing against the Company or any of its respective
properties any legal action that is not a bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation Proceeding.

27.

Confidentiality.

The Investment Manager
shall hold in confidence, and not disclose to any Person the terms of any fees payable in connection with any Transaction Document
except it may disclose such information (i) to its officers, directors, employees, agents, counsel, accountants, auditors, advisors,
prospective lenders, equity investors or representatives, (ii) to the extent such information has become available to the public
other than as a result of a disclosure by or through such Person, (iii) to the extent the Investment Manager or any Affiliate deems
disclosure reasonably prudent under, or should be required by, any law or regulation applicable to it, or (iv) as requested by
any Official Body to disclose such information.

[Remainder of page intentionally left
blank.]

 

    	-20-

    	 

    

 

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

 

	 	FS INVESTMENT CORPORATION II
	 	 
	 	 
	 	By:	  /s/ Gerald F. Stahlecker
	 	 	Name: Gerald F. Stahlecker
	 	 	Title:  Executive Vice President
	 	 	 
	 	 	 
	 	GREEN CREEK LLC
	 	 
	 	 
	 	By:	/s/ Gerald F. Stahlecker
	 	 	Name: Gerald F. Stahlecker
	 	 	Title:  Executive Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00238-of-00352.parquet"}]]