Document:

Collateral Management Agreement

 Exhibit 10.7 
 COLLATERAL MANAGEMENT AGREEMENT 
 This Collateral Management
Agreement, dated as of October 26, 2012 (the “Agreement”), is entered into by and between Lehigh River LLC, a Delaware limited liability company (together with successors and assigns permitted hereunder, the
“Issuer”), and FS Investment Corporation II, a Maryland corporation (together with its successors and assigns, the “Collateral Manager”). 
 WITNESSETH: 
 WHEREAS, the Issuer intends to issue, pursuant to an
indenture to be dated as of the date hereof (as the same may be supplemented or otherwise modified from time to time, the “Indenture”), by and between the Issuer and Citibank, N.A., as trustee (the “Trustee”), up to
$180,000,000 aggregate principal amount of Class A Notes, Due November 20, 2023 (the “Class A Notes”); 
 WHEREAS, pursuant to the Indenture, the Issuer intends to pledge to the Trustee for the benefit of the Secured Parties certain Collateral Obligations, Eligible Investments, any Equity Securities acquired
or received in connection with the Collateral Obligations, together with certain other contract rights, amounts on deposit in certain accounts, certain other assets and the proceeds thereof; 

WHEREAS, the Issuer is authorized to enter into this Agreement, pursuant to which the Collateral Manager agrees to perform, on behalf of
the Issuer, certain duties with respect to the Collateral in the manner and on the terms set forth herein and to perform such additional duties as are consistent with the terms of this Agreement and the Indenture as the Issuer may from time to time
request; and 
 WHEREAS, the Collateral Manager has the capacity to provide the services required hereby and is prepared to
perform such services upon the terms and conditions set forth herein. 
 NOW, THEREFORE, in consideration of the mutual
agreements herein set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties to this Agreement, the parties hereto agree as follows: 

 

	 	1.	Definitions. 

 Capitalized
terms used herein but not otherwise defined shall have the meanings set forth in the Indenture. 
 “Agreement”
shall mean this Collateral Management Agreement, as amended or otherwise modified from time to time in accordance with the terms hereof. 
 “Collateral Management Fee” shall have the meaning specified in Section 8(a). 

	 	2.	General Duties of the Collateral Manager. 

 The Collateral Manager shall provide services to the Issuer as follows: 
 (a) Subject to and in accordance with the terms of the Indenture and this Agreement, the Collateral Manager agrees to supervise and direct the investment and reinvestment of the Collateral and shall
perform on behalf of the Issuer, after observation of any directions of the Board of Managers, those investment-related duties and functions assigned to the Issuer under the Indenture, including, without limitation, the furnishing of Issuer Orders
and providing such certifications as may be required under the Indenture with respect to permitted purchases and sales of Collateral Obligations and Eligible Investments, and the Collateral Manager shall have the power to execute and deliver all
other necessary and appropriate documents and instruments on behalf of the Issuer with respect thereto except to the extent otherwise expressly provided in the Indenture. 

(b) The Collateral Manager shall, subject to the terms and conditions of the Indenture, perform its obligations hereunder
with reasonable care and in good faith using a degree of skill and attention no less than that which the Collateral Manager exercises with respect to comparable assets that it manages for others with similar objectives and policies, and carry out
its obligations hereunder in a manner consistent with the practices and procedures followed by prudent institutional managers of national standing relating to assets of the nature and character of the Collateral. Without prejudicing the preceding
sentence, the Collateral Manager shall follow its customary standards, policies and procedures in performing its duties hereunder. 
 (c) The Collateral Manager shall comply with all of the terms and conditions of the Indenture affecting the duties and functions to be performed by it hereunder. The Collateral Manager shall be bound to
follow the terms of any amendment to the Indenture, subject to the limitations set forth in Section 8.5 of the Indenture. 
 (d) Subject to the terms and conditions of this Agreement and the Indenture, the Collateral Manager shall (i) select the Collateral Obligations and Eligible Investments to be acquired by the Issuer,
(ii) invest and reinvest the Collateral and facilitate the acquisition and settlement of Collateral Obligations by the Issuer and (iii) instruct the Trustee with respect to any disposition or tender of a Collateral Obligation, Equity
Security or Eligible Investment by the Issuer. In performing its duties hereunder, the Collateral Manager shall seek to maximize the value of the Collateral for the benefit of the Noteholders, taking into account the investment criteria and
limitations set forth herein and in the Indenture, and the Collateral Manager shall use all reasonable efforts to manage the Collateral in such a way that timely payments are made on the Class A Notes and no Default occurs under the Indenture;
provided, that (x) the Collateral Manager shall not be responsible if such objectives are not achieved so long as the Collateral Manager performs its duties under this Agreement and the Indenture in the manner provided for herein and
therein; and (y) there shall be no recourse to the Collateral Manager with respect to the Class A Notes. In no event whatsoever shall there be recourse to the Collateral Manager or any of its Affiliates for any amounts payable on the
Class A Notes or the other payment obligations of the Issuer under the Indenture or any of the other documents executed and delivered by the Issuer in connection with the transactions contemplated by the Indenture. 

 (e) The Collateral Manager shall monitor the Collateral on behalf of the
Issuer and, on an ongoing basis, provide to the Trustee, the Collateral Administrator and the Issuer all reports, schedules and other data which the Issuer is required to prepare and deliver under the Indenture, substantially in the form and
containing such information required thereby, in sufficient time for such required reports, schedules and data to be reviewed and delivered by the Issuer to the parties entitled thereto under the Indenture. In addition, the Collateral Manager shall,
on behalf of the Issuer and to the extent reasonable and practicable, from sources of information normally available to it, be responsible for obtaining any information concerning whether a Collateral Obligation has become a Defaulted Obligation.

 (f) The Collateral Manager may, subject to and in accordance with the provisions of the Indenture and this
Agreement, direct the Trustee to take the following actions with respect to the Collateral: 
  

	 	(i)	retain any Collateral Obligation, Equity Security or Eligible Investment; 

  

	 	(ii)	sell or otherwise dispose of such Collateral Obligation, Equity Security or Eligible Investment in the open market or otherwise as permitted under the terms hereof and
under the terms of the Indenture; 

  

	 	(iii)	if applicable, tender such Collateral Obligation, Equity Security or Eligible Investment pursuant to an Offer; 

 

	 	(iv)	if applicable, consent or withhold consent to any proposed amendment, modification or waiver pursuant to an Offer; 

 

	 	(v)	retain or dispose of any securities or other property (other than Cash) received pursuant to an Offer; 

 

	 	(vi)	waive, or consent to the waiver of, any default with respect to a Defaulted Obligation; 

 

	 	(vii)	accelerate, or vote to accelerate, the maturity of a Defaulted Obligation; 

 

	 	(viii)	take appropriate action with respect to Collateral that does not constitute Collateral Obligations or Eligible Investments; or 

 

	 	(ix)	subject to Sections 7.20 and 7.21 of the Indenture, exercise, or consent to the exercise of, any other rights or remedies with respect to such Collateral Obligation,
Equity Security or Eligible Investment as provided in the related document and instruments governing such Collateral Obligation. 

 (g) Subject to the satisfaction of the requirements of this Agreement and
the Indenture, following the disposition of any Collateral Obligation, Equity Security or Eligible Investment (or any security or property received in exchange therefor), the Collateral Manager shall direct the Trustee to apply such amounts in
accordance with the Indenture to the purchase of one or more Collateral Obligations or Eligible Investments from time to time as required or permitted by the Indenture. 

(h) The Collateral Manager hereby agrees to the following: 

 

	 	(i)	the Collateral Manager agrees not to institute against, or join any other Person in instituting against, the Issuer any bankruptcy, reorganization, arrangement,
insolvency, moratorium or liquidation proceedings or other proceedings under U.S. federal or state bankruptcy or similar laws until at least one year and one day or, if longer, the applicable preference period then in effect, after the payment in
full of all Class A Notes; provided, that nothing in this clause (i) shall preclude, or be deemed to estop, the Collateral Manager (A) from taking any action prior to the expiration of the applicable preference period in
(x) any case or proceeding voluntarily filed or commenced by the Issuer or (y) any involuntary insolvency proceeding filed or commenced against the Issuer by a Person other than the Collateral Manager, or (B) from commencing against
the Issuer or any properties of the Issuer any legal action which is not a bankruptcy, reorganization, arrangement, insolvency, moratorium or liquidation proceeding; 

 

	 	(ii)	the Collateral Manager shall cause any purchase or sale of any Collateral Obligation to be conducted on terms and conditions no less favorable to the Issuer than those
available on an arm’s length basis; 

  

	 	(iii)	the Collateral Manager shall provide to the Independent accountants appointed pursuant to Section 10.7 of the Indenture all reports, data and other information
(including, without limitation, any letters of representations) that such accountants may reasonably request in connection with such appointment, to the extent reasonably available to the Collateral Manager; and 

 

	 	(iv)	the Collateral Manager shall notify the Issuer of any change in control of the Collateral Manager within a reasonable time after such change in control occurs.

 (i) In providing services hereunder, the Collateral Manager may, without the prior consent of
the Issuer or any Noteholder, employ or contract with third parties at its 

 
own expense, including its Affiliates, to render advice (including investment advice) and assistance, including the performance of any of its duties hereunder. Such third parties shall be in
addition to the Collateral Administrator employed by the Issuer pursuant to the Collateral Administration Agreement, the Independent accountants appointed on behalf of the Issuer pursuant to Section 10.7 of the Indenture and any additional
agents and counsel employed by the Issuer pursuant to the Indenture, and to the maximum extent permitted under applicable law, the Collateral Manager shall not be liable for the acts or omissions of any such Person employed or appointed by the
Issuer. The Collateral Manager shall not be relieved of any of its duties hereunder as a result of employing or contracting with third parties pursuant to this Section 2(i) regardless of the performance of services by such third parties.
Notwithstanding the foregoing, the Collateral Manager may not assign its duties hereunder except in accordance with Section 16. 
 (j) Notwithstanding anything in this Agreement to the contrary and for the avoidance of doubt, the Collateral Manager shall not purchase any Collateral Obligation on behalf of the Issuer without the prior
written consent of a Majority of the Controlling Class. 
  

	 	3.	Brokerage. 

 The
Collateral Manager, in its sole discretion, shall seek to obtain the best execution for all orders placed with respect to the Collateral, considering all relevant circumstances, including, without limitation, if applicable, conditions related to any
optional redemption of the Class A Notes or Tax Event (it being understood that the Collateral Manager may not always obtain the best prices available). Subject to the objective of obtaining the best execution, the Collateral Manager may, in
the allocation of business, take into consideration all factors that it deems relevant, including, without limitation, the price, the size of the transaction, the nature of the market for the security, the amount of the commission, the amount of any
assignment or transaction fees, the timing of the transaction taking into account market prices and trends, the reputation, experience and financial stability of the broker or dealer involved, the quality of service rendered by the broker or dealer
in other transactions and other research and other brokerage services furnished to the Collateral Manager or its Affiliates by brokers and dealers, in connection with the duties of the Collateral Manager hereunder or otherwise, in each case in
compliance with Section 28(e) of the Exchange Act. Such brokerage services may be used by the Collateral Manager or its Affiliates in connection with its other advisory activities or investment operations. The Collateral Manager may aggregate
sales and purchase orders with respect to a transaction with similar orders being made simultaneously for other accounts managed by the Collateral Manager or its Affiliates, if in the Collateral Manager’s reasonable judgment such aggregation
may result in an overall economic benefit to the Issuer, taking into consideration the selling or purchase price, brokerage commission or other expenses. The terms and conditions of any transaction between the Company and the Collateral Manager
pursuant to this Agreement shall be conducted and executed in accordance with applicable law and under terms and at a price that would be applicable in a materially identical transaction conducted on an arms-length basis. When a transaction on
behalf of the Issuer occurs as part of any aggregate sales or purchase orders by the Collateral Manager, the objective of the Collateral Manager (and of its Affiliates involved in such transactions) shall be to allocate the executions among the
accounts in an equitable manner based on then current facts and circumstances as determined by the Collateral Manager from information reasonably available to it. 

 Subject to the Collateral Manager’s execution obligations described herein, the
Collateral Manager is hereby authorized to effect client cross-transactions where the Collateral Manager causes a transaction to be effected between the Issuer and another account advised by it or any of its Affiliates; provided that, if and to the
extent required by the Advisers Act, such authorization is terminable at the Issuer’s option without penalty, effective upon receipt by the Collateral Manager of written notice from the Issuer. 

 

	 	4.	Additional Activities of the Collateral Manager. 

 (a) Nothing herein shall prevent the Collateral Manager or any of its Affiliates from engaging in other businesses, or from rendering services of any kind to the Issuer and its Affiliates, the Trustee,
the Holders of the Class A Notes or any other Person. Without prejudice to the generality of the foregoing, the Collateral Manager and its Affiliates and their respective members, managers, directors, officers, stockholders, employees and
agents may, among other things, and subject to any limits specified in the Indenture and to the extent permitted by applicable law: 
  

	 	(i)	serve as directors (whether supervisory or managing), officers, employees, agents, nominees or signatories for the Issuer, its Affiliates or any issuer of any
obligations included in the Collateral, to the extent permitted by their organizational documents, as from time to time amended, or by any resolutions duly adopted by the Issuer, its Affiliates or any issuer of any securities included in the
Collateral, pursuant to their respective organizational documents; 

  

	 	(ii)	receive fees for services rendered to any issuer of any obligations included in the Collateral; provided, that (i) if any portion of such services is
related to any obligations included in the Collateral, the portion of such fees, if any, that are payable to the Issuer and included within the definition of “Principal Proceeds” in the Indenture relating to such obligations shall be
deposited in the Collection Account and (ii) with respect to such services, the Collateral Manager is not acting as an agent for the Issuer; 

  

	 	(iii)	be retained to provide services to the Issuer or its Affiliates that are unrelated to this Agreement, and be paid therefor; 

 

	 	(iv)	be a secured or unsecured creditor of, or hold an equity interest in, the issuer of any obligations included in the Collateral or any Affiliate thereof;

	 	(v)	make a market in any Collateral Obligation, Eligible Investment or in the Class A Notes; provided, that with respect to such market, the Collateral Manager
is not acting as agent for the Issuer; 

  

	 	(vi)	serve as a member of any “creditors’ committee” or informal workout group with respect to any obligation included in the Collateral which has become, or,
in the Collateral Manager’s reasonable opinion, may become, a Defaulted Obligation; and 

  

	 	(vii)	act as collateral manager, investment manager or investment advisor for any other entity which invests in securities in connection with collateralized debt obligation
transactions and in accordance with investment policies and objectives similar to that of the Issuer; provided, that the Collateral Manager may not take any such action if such action would require registration of the Issuer as an
“investment company” under the Investment Company Act or violate any provisions of federal or applicable state law or any law, rule or regulation of any governmental body or agency having jurisdiction over the Issuer.

 (b) It is understood that the Collateral Manager and any of its Affiliates may engage in any
other business and furnish investment management and advisory services to others, including Persons which may have investment policies different from or similar to those of the Collateral Manager and which may own securities of the same class, or
which are of the same type as the Collateral Obligations, Equity Securities or Eligible Investments or other securities of the issuers of Collateral Obligations, Equity Securities or Eligible Investments. The Collateral Manager shall be free in its
sole discretion to make recommendations to others, or effect transactions on behalf of itself or for others, which may be the same as or different from those effected with respect to the Collateral. The Issuer acknowledges that transactions in a
specific Collateral Obligation may not be accomplished for all accounts of the Collateral Manager’s clients at the same time or the same price. 
 (c) Nothing contained in this Agreement shall prevent the Collateral Manager or any of its Affiliates, acting either as principal or agent on behalf of others, from buying or selling, or from recommending
to or directing any other account to buy or sell, at any time, securities of the same kind or class, or securities of a different kind or class of the same issuer, as those directed by the Collateral Manager to be purchased or sold on behalf of the
Issuer hereunder. It is understood that, to the extent permitted by applicable law, the Collateral Manager, its Affiliates, and any officer, director, member, manager or employee of the Collateral Manager or any such Affiliate or any member of their
families or a Person advised by the Collateral Manager may have an interest in a particular transaction or in securities of the same kind or class, or securities of a different kind or class of the same issuer, as those whose purchase or sale the
Collateral Manager may direct hereunder. 

 (d) The Issuer acknowledges that the ability of the Collateral Manager and
its Affiliates to effect and/or recommend transactions related to the Collateral Obligations may be restricted by applicable regulatory requirements in the United States or elsewhere and/or the Collateral Manager’s internal policies designed to
comply with such requirements. Without limitation of the foregoing, when the Collateral Manager or an Affiliate is engaged in an underwriting or other distribution of securities of a company, the Collateral Manager may in certain circumstances be
prohibited from purchasing or recommending the purchase of certain securities of that company for its clients. Without limitation of the foregoing, the Collateral Manager and its Affiliates may also be prohibited from effecting certain transactions
for the Issuer’s account with or through its Affiliates, when acting as agent for another customer as well as the Issuer in respect of a particular transaction, or from acting as the counterparty on a transaction with the Issuer. If not
prohibited, the Collateral Manager is nonetheless not required to effect transactions for the Issuer’s account with or through the Collateral Manager’s Affiliates and other clients of the Collateral Manager and/or its Affiliates or in
instances in which the Collateral Manager or its Affiliates have multiple interests. 
 (e) Unless the Collateral
Manager determines in its sole discretion that such purchase or sale may be appropriate, the Collateral Manager may refrain from directing the purchase or sale hereunder of securities of (i) the Collateral Manager, its Affiliates or any of its
or their officers, directors, agents, stockholders or employees, (ii) Persons for which the Collateral Manager or its Affiliates act as financial adviser or underwriter and (iii) Persons about which the Collateral Manager or its Affiliates
have information which the Collateral Manager deems confidential or non-public or otherwise might prohibit it from trading such securities in accordance with applicable law. The Collateral Manager shall not be obligated to exploit any particular
investment opportunity that may arise with respect to the Collateral. 
  

	 	5.	Conflicts of Interest. 

 (a) Any purchase or disposition of a Collateral Obligation shall be made in accordance with Section 2(h)(ii). Any purchase or disposition of a Collateral Obligation effected on behalf of the
Issuer with the Collateral Manager or any Affiliate thereof will be effected in accordance with all applicable laws (including, without limitation, the Investment Company Act and the Advisers Act and their respective rules and regulations) and on
terms as favorable to the Issuer as would be the case if such Person were not so affiliated. 
 (b) Various
potential and actual conflicts of interest may arise from the overall investment activities of the Collateral Manager and its Affiliates. The Collateral Manager and its Affiliates may invest in securities and loans that would be appropriate to
purchase under the Indenture. Such investments may be different from those made on behalf of the Issuer. The Collateral Manager and its Affiliates may have ongoing relationships with companies whose securities or loans are purchased under the
Indenture as Collateral Obligations. Affiliates and clients of the Collateral Manager may invest in securities or loans that are senior to, or have interests different from or adverse to, the 

 
securities and loans that are purchased under the Indenture. The Collateral Manager may serve as asset manager for, invest in, or be affiliated with, other entities organized to issue
collateralized debt obligations secured by high yield debt securities, loans, emerging market debt securities and loans or other types of investments (or combinations thereof). The Collateral Manager has and may at certain times be simultaneously
seeking to purchase or sell investments for the Issuer and any similar entity for which it serves as asset manager, or for its clients and Affiliates, or enter into transactions between the Issuer and any similar entity for which it serves as asset
manager. The Issuer hereby acknowledges the various potential and actual conflicts of interest that may exist with respect to the Collateral Manager as described above and further acknowledges and agrees that, except to the extent that the
Collateral Manager breaches any of its covenants or undertakings hereunder, the Collateral Manager shall have no liability arising out of such potential or actual conflicts of interest; provided, that nothing in this Section 5
shall be construed as altering the duties of the Collateral Manager as set forth in this Agreement or any other transaction document or the requirements of any law, rule, or regulation applicable to the Collateral Manager. 

 

	 	6.	Records; Confidentiality. 

The Collateral Manager shall maintain appropriate books of account and records relating to services performed hereunder, and such books of
account and records shall be accessible for inspection by a representative of the Issuer, the Trustee, the Holders of the Class A Notes, the Collateral Administrator and the Independent accountants appointed by the Collateral Manager on behalf
of the Issuer pursuant to Section 10.7 of the Indenture at any time during the Collateral Manager’s normal business hours and upon not less than three (3) Business Days’ prior notice. The Collateral Manager shall keep
confidential any and all information obtained in connection with the services rendered hereunder and shall not disclose any such information to non-affiliated third parties except (i) with the prior written consent of the Issuer, (ii) in
connection with establishing trading or investment accounts or otherwise in connection with effecting transactions on behalf of the Issuer, (iii) as required by law, regulation, court order, organizational document or the rules or regulations
of any self-regulating organization, body or official having jurisdiction over the Collateral Manager, (iv) to its professional advisers, (v) information relating to performance of the Collateral as may be used by the Collateral Manager in
the ordinary course of its business, (vi) such information that was or is obtained by the Collateral Manager on a non-confidential basis; provided, that the Collateral Manager does not know or have reason to know of any breach by such
source of any confidentiality obligations with respect thereto, (vii) such information as may be necessary or desirable in order for the Collateral Manager to prepare, publish and distribute to any Person any information relating to the
investment performance of the Collateral during any period that the Collateral Manager serves as an investment adviser to the Issuer, (viii) to potential buyers in connection with a sale of any of the Class A Notes or any Collateral and
(x) such information as shall have been publicly disclosed other than in violation of this Agreement; provided, that notwithstanding anything to the contrary set forth herein or in any other agreement to which the parties hereto are
parties or by which they are bound, each party hereto (and any employee, representative or agent of any party hereto) may disclose to any and all persons, without limitation of any kind, the tax structure and tax treatment of the transactions
contemplated hereby and by the transaction 

 
documents and all materials of any kind (including opinions or other tax analysis) that are provided to such party relating to such tax treatment and tax structure. For this purpose, “tax
structure” is limited to any facts relevant to the U.S. federal income tax treatment of the offering and does not include information relating to the identity of the Issuer. For purposes of this Section 6, none of the Issuer, the
Holders of the Class A Notes or the Trustee shall be considered “non-affiliated third parties.” 
  

	 	7.	Obligations of Collateral Manager. 

 Subject to the terms of the Indenture and to Section 10 hereof, the Collateral Manager shall use all commercially reasonable efforts to ensure that no action is taken by it, and shall not
willfully or in a grossly negligent manner take any action which would (a) materially adversely affect the status of the Issuer for purposes of U.S. federal or state law or any other law which, in the Collateral Manager’s good faith
judgment, is applicable to the Issuer, (b) not be permitted by the Issuer’s organizational documents, (c) violate any law, rule or regulation of any governmental body or agency having jurisdiction over the Issuer, including, without
limitation, actions which would violate any U.S. federal, state or other applicable securities law the violation of which would adversely affect, in any material respect, any Holder of any Class A Notes, the business, operations, assets or
financial condition of the Issuer, or the ability of the Collateral Manager to perform its obligations hereunder, (d) require registration of the Issuer or the pool of Collateral as an “investment company” under the Investment Company
Act, (e) adversely affect the Trustee in any material respect, (f) result in the Issuer violating the terms of the Indenture, (g) adversely affect the interests of the Secured Parties in the pool of Collateral in any material respect
(other than actions (i) permitted hereunder or under the Indenture or (ii) taken in the ordinary course of business of the Collateral Manager in accordance with its fiduciary duties to its clients) or (h) cause (i) the Issuer to
take any action or make an election to classify itself as an association taxable as a corporation for federal, state or any applicable tax purposes or (ii) otherwise cause adverse tax consequences to the Issuer, it being understood that, in all
circumstances, (x) the Collateral Manager and its Affiliates and their respective members, managers, directors, officers, stockholders, employees and agents shall not be liable to the Issuer except as provided in Section 10 and
(y) in connection with the foregoing, the Collateral Manager shall not be required to make any independent investigation of any facts or laws not otherwise known to it in connection with its obligations under this Agreement and the Indenture or
the conduct of its business generally. If the Collateral Manager is ordered to take any such action, the Collateral Manager shall promptly notify the Trustee if, in the Collateral Manager’s judgment, such action would have one or more of the
consequences set forth above; provided, that the Collateral Manager need not take such action unless a Majority of the Controlling Class have consented thereto in writing. In addition, the Collateral Manager need not take such action unless
arrangements satisfactory to it are made to insure or indemnify the Collateral Manager from any liability it may incur as a result of such action. The Collateral Manager and its Affiliates and their respective members, managers, directors, officers,
stockholders, employees and agents shall not be liable to the Issuer, the Trustee, any Secured Party or any other Person except as provided in Section 10. The Collateral Manager covenants that it shall comply in all material respects
with applicable laws and regulations relating to its performance under this Agreement. Notwithstanding anything contained in this Agreement to the contrary, any indemnification of the Collateral Manager provided for in this Section 7
shall be payable out of the Collateral in accordance with the Priority of Payments. 

	 	8.	Compensation. 

 (a) On each Payment Date, the Collateral Manager shall be entitled to receive, for services rendered and performance of its obligations under this Agreement over the related Due Period, a fee payable in
arrears equal to an aggregate 0.15% per annum on the Aggregate Principal Amount of the Collateral Portfolio (such fee, the “Collateral Management Fee”), measured as of the beginning of the Due Period preceding such Payment Date
and payable in accordance with the Priority of Payments as described in Article XI of the Indenture on each such Payment Date. The Collateral Management Fee shall be computed on the basis of a calendar year consisting of 360-days and the
actual number of days elapsed. 
 (b) If this Agreement is terminated pursuant to Section 12 or
13 or otherwise, any accrued and unpaid Collateral Management Fee will immediately become due and payable in accordance with the Priority of Payments on the next Payment Date to the outgoing Collateral Manager; provided, that the
accrued and unpaid Collateral Management Fee with respect to the Due Period in which this Agreement is terminated will be payable to the outgoing Collateral Manager and the successor Collateral Manager pro rata based on the number of
days each served in such capacity during the Due Period in which this Agreement is terminated; provided, further, that any accrued and unpaid Collateral Management Fee accrued prior to the Due Period in which this Agreement is
terminated, including any Collateral Management Fees deferred pursuant to Section 8(c), shall be payable solely to the outgoing Collateral Manager. 
 (c) If on any Payment Date there are insufficient funds to pay any Collateral Management Fee then due in full in accordance with the Priority of Payments, or if on or prior to any Payment Date the
Collateral Manager elects (by delivering notice of such election to the Trustee and the Collateral Administrator) to defer all or any portion of the Collateral 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 Collateral Manager shall have the
right, at its sole option, to waive all or a portion of any accrued and unpaid Collateral 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. 
 (d) The Collateral Manager shall be
responsible for all expenses incurred in the performance of its obligations under this Agreement; provided, that the following shall be reimbursed by the Issuer in accordance with the Indenture: (i) the fees and disbursements of the Collateral
Manager and its counsel with respect to the offering and sale of the Class A Notes, (ii) the reasonable fees and reasonable expenses of employing outside lawyers or consultants in connection with the restructuring of any Collateral

 
Obligation, (iii) the fees payable to Virtus Group, LP, as Collateral Administrator under the Collateral Administration Agreement, (iv) the reasonable fees and reasonable expenses of
employing outside lawyers to provide advice with respect to any provisions of the Indenture or this Agreement, including any amendment or waiver thereto or hereto, (v) the reasonable expenses of exercising observation rights (including through
a representative) pursuant to Section 18, and (vi) the expenses of Independent accountants of the Issuer. 
  

	 	9.	Benefit of the Agreement. 

The Collateral Manager agrees that its obligations under this Agreement shall be enforceable by the Trustee on behalf of the Secured
Parties. 
  

	 	10.	Limits of Collateral Manager Responsibility; Indemnification. 

(a) The Collateral 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 Issuer or the
Trustee in following or declining to follow any advice, recommendation or direction of the Collateral Manager. The Collateral Manager and its Affiliates and their respective members, managers, directors, officers, stockholders, employees and agents
shall not be liable to the Issuer, the Trustee, any Secured Party or the Holders of the Class A Notes or any other Persons for any Losses (as defined below) incurred, or for any decrease in the value of the Collateral or the Class A Notes,
as a result of the actions taken or recommended, or for any omissions, by the Collateral 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 Collateral 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 Collateral Manager to take into account its investment decision-making process and any other considerations it deems appropriate. The Collateral Manager and its Affiliates and their respective members, managers, directors, officers,
stockholders, employees and agents shall be entitled to indemnification by the Issuer in accordance with Section 10(b) and the Priority of Payments. The Collateral Manager shall indemnify and hold harmless (the Collateral Manager, in
such case the “Indemnifying Party”) the Issuer and its Affiliates and their respective members, managers, directors, officers, stockholders, employees and agents (each, an “Indemnified Party”) 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 Collateral Manager of its obligations hereunder and under the applicable terms
of the Indenture. 

 (b) The Issuer shall indemnify and hold harmless (the Issuer, in such case
the “Indemnifying Party”) the Collateral Manager and its Affiliates and their respective members, managers, directors, officers, stockholders, employees and agents (each, an “Indemnified Party”) from and against any
and all Losses, as incurred, in respect of or arising from (i) the issuance of the Class A Notes, (ii) the transactions described in the Indenture or this Agreement, or (iii) any action or failure to act by any Indemnified Party
which has not been determined in a final judicial proceeding to constitute bad faith, fraud, willful misconduct or gross negligence of the Collateral Manager’s duties under this Agreement or the Indenture. The obligations of the Issuer under
this Section 10 to indemnify any Indemnified Party 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 Party shall (or, solely in the case of Collateral Manager as Indemnified Party, with respect to the
Collateral Manager’s Affiliates and the members, managers, directors, officers, stockholders, employees and agents of the Collateral Manager and its Affiliates, the Collateral Manager shall cause such Indemnified Party to) promptly notify the
Indemnifying Party if the Indemnified Party 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 Party (i) shall not relieve such Indemnifying Party 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 Party of substantial rights and defenses and (ii) shall not, in any event, relieve the Indemnifying Party 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 Party, or compulsory process or request served
upon such Indemnified Party for which such Indemnified Party is or may be entitled to indemnification under this Section 10, such Indemnified Party shall (or, solely in the case of Collateral Manager as Indemnified Party, with respect to
the Collateral Manager’s Affiliates and the members, managers, directors, officers, stockholders, employees and agents of the Collateral Manager and its Affiliates, the Collateral Manager shall cause such Indemnified Party to), at the
Indemnifying Party’s expense: 
  

	 	(i)	 give written notice to the Indemnifying Party 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 Party of its obligation hereunder, unless the Indemnifying Party is materially prejudiced or otherwise forfeits substantial rights or
defenses by reason of such failure; 

  

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

  

	 	(iii)	cooperate and take all such steps as the Indemnifying Party 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 Party the right, which the Indemnifying Party 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 Party to unindemnified liability) without the prior written consent of the Indemnifying Party; provided, that the Indemnifying Party shall
have advised such Indemnified Party that such Indemnified Party is entitled to be indemnified hereunder with respect to such claim; and 

  

	 	(vi)	 upon reasonable prior notice, afford to the Indemnifying Party 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 Party assumes the defense of
such claim, it shall not be liable for any fees and expenses of counsel for any Indemnified Party incurred thereafter in connection with such claim except that if such Indemnified. Party reasonably determines that counsel designated by the
Indemnifying Party has a conflict of interest, such Indemnifying Party shall pay the reasonable fees and disbursements of one counsel (in addition to any local counsel) separate from its own counsel for all Indemnified Parties 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 Party shall seek the consent of
the Indemnified Party 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 Party
as to the terms of settlement or compromise. If an Indemnified Party 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 Party, the Indemnifying Party shall not thereafter be obligated to indemnify the Indemnified Party for any amount in excess of such proposed settlement or compromise.

 (e) No Indemnified Party shall, without the prior written consent of the Indemnifying Party,
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 Party of a release from liability substantially equivalent to the release given by the claimant to such Indemnified Party in respect of
such claim. 
 (f) In the event that any Indemnified Party waives its right to indemnification hereunder, the
Indemnifying Party shall not be entitled to appoint counsel to represent such Indemnified Party nor shall the Indemnifying Party reimburse such Indemnified Party for any costs of counsel to such Indemnified Party. 

 

	 	11.	No Partnership or Joint Venture. 

 The Issuer and the Collateral Manager are not partners or joint venturers with each other and nothing herein shall be construed to make them such partners or joint venturers or impose any liability as
such on either of them. The Collateral Manager shall be, for all purposes herein, deemed to be an independent contractor and shall, unless otherwise expressly provided herein or authorized by the Issuer from time to time, have no authority to act
for or represent the Issuer in any way or otherwise be deemed an agent of the Issuer. 
  

	 	12.	Term; Termination. 

 (a) This Agreement shall continue in force until the first of the following occurs: (i) the payment in full or redemption in whole of the Class A Notes and the termination of the Indenture in
accordance with its terms; (ii) the liquidation of the Collateral and the final distribution of the proceeds of such liquidation to the Holders of the Class A Notes; or (iii) the termination of this Agreement in accordance with
Section 12(b), (c) or Section 13. The Collateral Manager hereby acknowledges and agrees that the Collateral Manager shall continue to perform its obligations hereunder and

 
under the Indenture in the manner provided herein and therein until the payment in full or redemption in whole of the Class A Notes unless any of the events described in clause
(ii) or (iii) of the preceding sentence occur prior thereto. 
 (b) Notwithstanding any
other provision hereof to the contrary, this Agreement may be terminated without cause by the Collateral Manager, and the Collateral Manager may resign, upon 90 days’ prior written notice to the Issuer and the Trustee. 

(c) This Agreement shall be automatically terminated in the event that the Issuer or any portion of the pool of Collateral
has become required to register as an investment company under the provisions of the Investment Company Act. 

(d) If this Agreement is terminated pursuant to this Section 12, such termination shall be without any further
liability or obligation of either party to the other, except as provided in Sections 8, 10 and 14, which provisions shall survive the termination of this Agreement. 

(e) Upon the removal or resignation of the Collateral Manager pursuant to Section 12 or 13, the Issuer
may appoint a successor Collateral Manager that is reasonably acceptable to a Majority of the Controlling Class and that is approved by all of the members of the Issuer. 
 If the Collateral Manager is removed pursuant to Section 13, (1) a Majority of the Controlling Class may elect to increase the Collateral Management Fee (or provide for a subordinated
collateral management fee) for the successor Collateral Manager, subject to the consent of the Issuer; and (2) if a successor Collateral Manager is not appointed within 60 days of such removal of the Collateral Manager for “cause,”
the Issuer may not reinvest in additional Collateral Obligations. 
 (f) Upon the acceptance by a successor
Collateral Manager of such appointment, all rights and obligations of the Collateral Manager under this Agreement shall terminate, except as provided in Sections 2(h)(i), 8(b), 10(a), 10(b), 14(a) and 23.
Upon expiration of the applicable notice period with respect to termination specified in this Section 12 or Section 13, as applicable, and upon the acceptance by a successor Collateral Manager of such appointment, all
authority and power of the Collateral Manager under this Agreement and the Indenture, whether with respect to the Collateral or otherwise, shall automatically and without further action by any Person pass to and be vested in the successor Collateral
Manager upon the appointment thereof. Nevertheless, the Collateral Manager shall take such steps as may be reasonably necessary to transfer such authority and power. 
  

	 	13.	Termination for Cause. 

This Agreement may be terminated, and the Collateral Manager may be removed by the Issuer for cause, upon thirty (30) days’
prior written notice and with the consent of a Majority of the Controlling Class; provided, that the termination of this Agreement pursuant to 

 
Section 13(c) shall be automatic with no notice required from the Issuer or any other Person and with no consent required from a Majority of the Controlling Class or any other Person;
provided, further, that such notice may be waived by the Collateral Manager. Notice of such removal for cause shall be delivered by or on behalf of the Issuer to the Holders of the Class A Notes. For purposes of determining
“cause” with respect to termination of this Agreement pursuant to this Section 13, such term shall mean any one of the following events: 
 (a) the Collateral Manager shall willfully violate or breach any material provision of this Agreement or the Indenture applicable to it; 

(b) the Collateral Manager shall violate or breach any provision of this Agreement or any term of the Indenture applicable
to it (including, but not limited to, any breach of a material representation, warranty or certification of the Collateral Manager hereunder or thereunder, but other than as covered in Section 13(a), and it being understood that the
failure of any Coverage Test or any Eligibility Criteria is not a violation or breach, other than a willful violation or breach of the Eligibility Criteria at the time of the acquisition of any Collateral Obligation), which violation or breach
(1) has a material adverse effect on the Holders of any Class A Notes and (2) if capable of being cured, is not cured within 30 days of the Collateral Manager becoming aware of, or its receiving notice from the Issuer or the Trustee
of, such violation or breach, or, if such violation or breach is not capable of being cured within 30 days but is capable of being cured in a longer period, it fails to cure such violation or breach within the period in which a reasonably prudent
person could cure such violation or breach, but in no event greater than 60 days; 
 (c) the Collateral Manager
is wound up or dissolved or there is appointed over it or a substantial part of its assets a receiver, administrator, administrative receiver, trustee or similar officer; or the Collateral Manager (i) 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; (ii) 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 Collateral 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 Collateral Manager and continue undismissed for 60 days; (iii) 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 Collateral 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 (iv) 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;

 (d) the indictment of the Collateral Manager for any act constituting fraud
or criminal negligence or otherwise constituting a felony, in each case that is related to the Collateral Manager’s performance of its obligations under this Agreement or is materially related to the Collateral Manager providing asset
management services; 
 (e) the occurrence of any event specified in clause (a) or (b) of
the definition of Event of Default in the Indenture which default is primarily the result of any act or omission of the Collateral Manager resulting from a breach of its duties under this Agreement or under the Indenture (but not as a result of any
default of any Collateral Obligation); 
 (f) as of any Measurement Date, failure of the percentage equivalent of
a fraction, (i) the numerator of which is equal to (1) the Aggregate Principal Amount of all Collateral Obligations plus (2) the aggregate Market Value of all Defaulted Obligations as of such date and (ii) the denominator of
which is equal to the Aggregate Outstanding Amount of the Class A Notes, to equal or exceed 147.07%; or 

(g) GSO/Blackstone Debt Funds Management LLC ceases to be the sub- advisor of the Collateral Manager. 

If any of the events specified in Section 13(c) shall occur, the Collateral Manager shall give prompt written notice thereof
to the Issuer and the Trustee upon the Collateral Manager’s becoming aware of the occurrence of such event. 
  

	 	14.	Action Upon Termination. 

 (a) From and after the effective date of termination of this Agreement, the Collateral Manager shall not be entitled to compensation for further services hereunder, but shall be paid all compensation
accrued to the date of termination and its pro rata portion of any Collateral Management Fee payable after the date of termination, as provided in Section 8(b), and shall be entitled to receive any amounts owing under
Section 10, in each case in accordance with the Priority of Payments on the following Payment Date and each Payment Date thereafter until paid in full. Upon such termination, the Collateral Manager shall as soon as practicable:

  

	 	(i)	deliver to the Issuer, or to the successor Collateral Manager if so directed by the Issuer, all property and documents of the Trustee or the Issuer or otherwise
relating to the Collateral then in the custody of the Collateral Manager; and 

  

	 	(ii)	deliver to the Trustee an accounting with respect to the books and records delivered to the Trustee or the successor Collateral Manager appointed pursuant to
Sections 12(e) and (f). 

 Notwithstanding such termination, the Collateral Manager shall remain
liable for its acts or omissions hereunder to the extent set forth in Section 10 arising prior to termination and for any expenses, losses, damages, liabilities, demands, charges and claims of any nature

 
whatsoever (including reasonable attorneys’ fees) in respect of or arising out of a breach of the representations and warranties made by the Collateral Manager in Section 17(b)
or from any failure of the Collateral Manager to comply with the provisions of this Section 14 or its obligations under Section 2(h)(i), Section 6 (solely with respect to confidentiality) and
Section 7. 
 The Collateral Manager agrees that, notwithstanding any termination, it shall reasonably cooperate in
any Proceeding arising in connection with this Agreement, the Indenture or any of the Collateral (excluding any such Proceeding in which claims are asserted against the Collateral Manager or any Affiliate of the Collateral Manager) upon receipt of
appropriate indemnifications and expense reimbursement. 
  

	 	15.	[Reserved]. 

  

	 	16.	Assignments. 

 The
Collateral Manager may not assign its rights or responsibilities under this Agreement without the approval of a Majority of the Controlling Class and all of the members of the Issuer; provided, that, notwithstanding the foregoing, the
Collateral Manager shall be permitted to assign any or all of its rights and delegate any or all of its obligations under this Agreement to an Affiliate without obtaining the approval of a Majority of the Controlling Class if such Affiliate
(i) has demonstrated an ability to perform professionally and competently duties similar to those imposed upon the Collateral Manager under this Agreement and the Indenture; (ii) is legally qualified and has the capacity to act as
Collateral Manager under this Agreement and (iii) performs its obligations under this Agreement using substantially the same team of individuals which would have performed such obligations had the assignment not occurred (subject to the right
of the Collateral Manager to remove, replace or substitute any such individuals in the ordinary course of its business); provided, further, that any assignment by the Collateral Manager of its rights and responsibilities under this
Agreement shall require the written consent of each of the Issuer and a Majority of the Controlling Class if it would constitute an “assignment” for purposes of Section 205(a)(2) of the Advisers Act. 

In addition, the Collateral Manager, in its discretion, may employ, or contract with, third parties (including Affiliates) to render
advice (including investment advice) and assistance to the Issuer and to perform any of its duties under this Agreement; provided, that the Collateral Manager shall not be relieved of any of its duties under this Agreement regardless of the
performance of any services by third parties. 
 Any assignment made in accordance with this Agreement shall bind the assignee
hereunder in the same manner as the Collateral Manager is bound. In addition, the assignee shall execute and deliver to the Issuer and the Trustee a counterpart of this Agreement naming such assignee as Collateral Manager. Upon the execution and
delivery of such a counterpart by the assignee, the Collateral Manager shall be released from further obligation pursuant to this Agreement, except with respect to its obligations arising under Section 10 prior to such assignment and for
any expenses, losses, damages, liabilities, demands, charges and claims of any nature whatsoever (including reasonable attorneys’ fees) in respect of or arising out of a breach of the representations and warranties made by the Collateral
Manager in Section 17(b) or from any failure of the Collateral Manager to comply with the provisions of this Section 16 or its 

 
obligations under Section 2(h)(i), Section 6 (with respect to confidentiality) and Section 7 (prior to such assignment). In addition, Sections 10(a),
10(b) and 14 shall survive any release of the Collateral Manager from its obligations under this Agreement pursuant to any assignment. 
 Any assignment of this Agreement by the Issuer shall require the prior written consent of the Collateral Manager and the Trustee, except in the case of assignment by the Issuer (i) to an entity which
is a successor to the Issuer permitted under the Indenture, in which case such successor organization shall be bound hereunder and by the terms of said assignment in the same manner as the Issuer is bound thereunder, or (ii) to the Trustee as
contemplated by the Indenture. In the event of any assignment by the Issuer, the Issuer shall use reasonable efforts to cause its successor to execute and deliver to the Collateral Manager such documents as the Collateral Manager shall consider
reasonably necessary to effect fully such assignment. 
  

	 	17.	Representations and Warranties. 

 (a) The Issuer hereby represents and warrants to the Collateral Manager as follows: 
  

	 	(i)	The Issuer has been duly formed and is validly existing under the laws of Delaware, has the full power and authority to own its assets and the securities proposed to be
owned by it and included in the Collateral and to transact the business in which it is presently engaged and is duly qualified under the laws of each jurisdiction where its ownership or lease of property or the conduct of its business requires, or
the performance of its obligations under this Agreement, the Securities Account Control Agreement, the Indenture, or the Class A Notes would require such qualification, except for failures to be so qualified, authorized or licensed that would
not in the aggregate have a material adverse effect on the business, operations, assets or financial condition of the Issuer. 

  

	 	(ii)	 The Issuer has the full power and authority to execute and deliver this Agreement, the Indenture, the Securities Account Control Agreement and the
Class A Notes and perform all obligations required hereunder and thereunder and has taken all necessary action to authorize this Agreement, the Indenture, the Securities Account Control Agreement and the Class A Notes on the terms and
conditions hereof and thereof and the execution, delivery and performance of this Agreement, the Indenture, the Securities Account Control Agreement and the Class A Notes and the performance of all obligations imposed upon it hereunder and
thereunder. No consent of any other person including, without limitation, stockholders and creditors of the Issuer, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with,
any governmental authority, other than those that may be required under state 

	 	
securities or “blue sky” laws and those that have been or shall be obtained in connection with this Agreement, the Indenture, the Securities Account Control Agreement or the issuance of
the Class A Notes, is required by the Issuer in connection with this Agreement, the Indenture, the Securities Account Control Agreement or the Class A Notes or the execution, delivery, performance, validity or enforceability of this
Agreement, the Indenture, the Securities Account Control Agreement or the Class A Notes or the obligations imposed upon it hereunder or thereunder. This Agreement, the Indenture, the Securities Account Control Agreement and the Class A
Notes constitute, and each instrument or document required hereunder or thereunder, when executed and delivered hereunder or thereunder, shall constitute, the legally valid and binding obligation of the Issuer enforceable against the Issuer in
accordance with its terms, subject, as to enforcement, to (a) 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 Issuer and (b) general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity). 

 

	 	(iii)	The execution, delivery and performance of this Agreement and the documents and instruments required hereunder shall not violate any provision of any existing law or
regulation binding on the Issuer, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Issuer, or the organizational documents of, or any securities issued by, the Issuer or of any mortgage,
indenture, lease, contract or other agreement, instrument or undertaking to which the Issuer is a party or by which the Issuer or any of its assets is or may be bound, the violation of which would have a material adverse effect on the business,
operations, assets or financial condition of the Issuer, and shall not result in or require the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract
or other agreement, instrument or undertaking (other than the lien of the Indenture). 

  

	 	(iv)	The Issuer is not an “investment company” which is required to be registered under the Investment Company Act. 

 

	 	(v)	 The Issuer is not in violation of its organizational documents or in breach or violation of or in default under the Indenture, the Securities Account
Control Agreement or any contract or agreement to which it is a party or by which it or any of its assets 

	 	
may be bound, or any applicable statute or any rule, regulation or order of any court, government agency or body having jurisdiction over the Issuer or its properties, the breach or violation of
which or default under which would have a material adverse effect on the validity or enforceability of this Agreement or the performance by the Issuer of its duties hereunder. 

(b) The Collateral Manager hereby represents and warrants to the Issuer as follows: 

 

	 	(i)	The Collateral Manager is a corporation duly organized, validly existing and in good standing under the laws of the State of Maryland and has full corporate power and
authority to own its assets and to transact the business in which it is currently engaged and is duly qualified as a corporation and is in good standing under the laws of each jurisdiction where its ownership or lease of property or the conduct of
its business requires, or the performance of this Agreement would require such qualification, except for those jurisdictions in which the failure to be so qualified, authorized or licensed would not have a material adverse effect on the ability of
the Collateral Manager to perform its obligations under, or on the validity or enforceability of, this Agreement and the provisions of the Indenture applicable to the Collateral Manager. 

 

	 	(ii)	 The Collateral Manager has the necessary power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and
has the necessary power to perform its obligations under the provisions of the Indenture applicable to the Collateral Manager and has taken all necessary corporate action to authorize this Agreement on the terms and conditions hereof and the
execution, delivery and performance of this Agreement and all obligations required hereunder and has taken all necessary corporate action in order to perform its obligations under the terms of the Indenture applicable to the Collateral Manager. No
consent of any other person, including, without limitation, creditors of the Collateral Manager, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental
authority is required by the Collateral Manager in connection with this Agreement or the execution, delivery, performance, validity or enforceability of this Agreement or the obligations required hereunder or the performance of its obligations under
the terms of the Indenture applicable to the Collateral Manager. This Agreement has been, and each instrument and document required hereunder will be, executed and delivered by a duly authorized officer of the

	 	
Collateral Manager, and this Agreement constitutes, and each instrument and document required hereunder when executed and delivered by the Collateral Manager hereunder will constitute, the valid
and legally binding obligations of the Collateral Manager enforceable against the Collateral Manager in accordance with their terms, subject, as to enforcement, to (a) 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 Collateral Manager and (b) general equitable principles (whether enforceability of such
principles is considered in a proceeding at law or in equity). 

  

	 	(iii)	The execution, delivery and performance of this Agreement and the performance by the Collateral Manager of the terms of the Indenture applicable to it will not violate
any provision of any existing law or regulation binding the Collateral Manager, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Collateral Manager, or the organizational documents of, or any
securities issued by, the Collateral Manager or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Collateral Manager is a party or by which the Collateral Manager or any of its assets may be
bound, the violation of which would have a material adverse effect on the ability of the Collateral Manager to perform its obligations under or the validity or enforceability of this Agreement or the provisions of the Indenture applicable to the
Collateral Manager, and will not result in or require the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or
undertaking. 

  

	 	(iv)	Except as otherwise disclosed, there is no charge, investigation, action, suit or proceeding before or by any court pending or, to the best knowledge of the Collateral
Manager, threatened that, if determined adversely to the Collateral Manager, would have a material adverse effect upon the performance by the Collateral Manager of its duties under, or on the validity or enforceability of, this Agreement.

  

	 	(v)	 The Collateral Manager is not in violation of its organizational documents or in breach or violation of or in default under any contract or agreement
to which it is a party or by which it or any of its property may be bound, or any applicable statute or any rule, regulation or order of any court, government agency or body 

	 	
having jurisdiction over the Collateral Manager or its properties, the breach or violation of which or default under which would have a material adverse effect on the validity or enforceability
of this Agreement or the performance by the Collateral Manager of its duties hereunder. 

  

	 	18.	Observation Rights. 

 The
Issuer covenants and agrees that, upon written request by the Collateral Manager, the Issuer will promptly provide the Collateral Manager with copies of the minutes of any meeting of the Board of Managers of the Issuer and any written materials
presented or reviewed at any such meeting; provided that the Issuer will have no such obligation in respect of any meeting that relates solely to matters of an administrative or routine nature that would have no material effect on the
Collateral Manager. 
  

	 	19.	Notices. 

 Unless
expressly provided otherwise herein, all notices, requests, demands and other communications required or permitted under this Agreement shall be in writing (including by telecopy) and shall be deemed to have been duly given, made and received when
delivered against receipt or upon actual receipt of registered or certified mail, postage prepaid, return receipt requested, or, in the case of notice by facsimile or electronic mail, when received in legible form (it being agreed that such notice
shall be effective at the time that a transmission report confirming transmission is generated by the sender’s facsimile machine), in each case addressed as set forth below: 

 

	 	(a)	If to the Issuer: 

 Lehigh River
LLC 
 Cira Centre 
 2929 Arch Street, Suite 675 
 Philadelphia, Pennsylvania 19104 

Telephone: (215) 495-1169 
 Telecopy: (215) 222-4649 
 Attention: Gerald F. Stahlecker 

Electronic Mail: jerry.stahlecker@franklinsquare.com 
  

	 	(b)	If to the Collateral Manager: 

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 
 Electronic Mail: jerry.stahlecker@franklinsquare.com 

	 	(c)	If to the Trustee: 

 Citibank,
N.A. 
 388 Greenwich Street, 14th Floor 
 New York, New York 10013 
 Telephone: (800) 422-2006 

Telecopy: (212) 816-5527 
 Attention: Global Transaction Services — Lehigh River LLC 
  

	 	(d)	If to the Collateral Administrator 

 Virtus Group, LP 
 5400 Westheimer Court, Suite 760 

Houston, Texas 77056 
 Telecopy: (866) 816-3203 
 Attention: Lehigh River LLC 

 

	 	(e)	If to the Noteholders: 

 At
their respective addresses set forth on the Register. 
 Any party may alter the mailing address, facsimile number or electronic
mail address to which communications or copies are to be sent by giving notice of such change of address in conformity with the provisions of this Section 19 for the giving of notice. 

 

	 	20.	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 heirs, personal representatives, successors and assigns as provided herein. 

 

	 	21.	Entire Agreement; Amendments. 

 This Agreement contains the entire agreement and understandings among the parties hereto with respect to the subject matter hereof, and supersedes all prior and contemporaneous agreements, understandings,
inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. Notwithstanding any term or condition hereof, the Collateral 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 Collateral Manager hereunder (other than as a result of the assignment by the Issuer of certain of its rights hereunder to secure repayment of the Class A 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 Collateral Manager consent to any amendments thereof are incorporated in this Agreement. 

	 	22.	Conflict with the Indenture. 

 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. 
  

	 	23.	Subordination. 

 The
Collateral 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 Collateral Manager agrees to be bound by the provisions of, Article XI of
the Indenture and each of the Collateral Manager and Issuer hereby consents to the assignment of this Agreement as provided in Article XV of the Indenture and the Collateral Manager agrees to the provisions of Section 15.1(f) of
the Indenture. 
  

	 	24.	Governing Law; Submission to Jurisdiction; Venue, Etc. 

 THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 With respect to Proceedings relating to this Agreement, each party irrevocably (i) submits to the non-exclusive jurisdiction of the courts of the State of New York and the United States District
Court located in the Borough of Manhattan in New York City and (ii) waives any objection which it may have at any time to the laying of venue of any Proceedings brought in any such court, waives any claim that such Proceedings have been brought
in an inconvenient forum and further waives the right to claim that such Proceedings have been brought in an inconvenient forum and further waives the right to object, with respect to such Proceedings, that such court does not have any jurisdiction
over such party. Nothing in this Agreement precludes either party from bringing Proceedings in any other jurisdiction, nor will the bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in any other
jurisdiction. 
 THE PARTIES HERETO IRREVOCABLY CONSENT TO THE SERVICE OF ANY AND ALL PROCESS IN ANY ACTION OR PROCEEDING BY THE
MAILING OR DELIVERY OF COPIES OF SUCH PROCESS TO EACH SUCH PARTY AT THE ADDRESS SPECIFIED IN SECTION 19 OF THIS AGREEMENT. THE PARTIES HERETO AGREE THAT A FINAL JUDGMENT SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT
ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. 
  

	 	25.	Indulgences Not Waivers. 

Neither the failure nor any delay on the part of any party hereto to exercise any right, remedy, power or privilege under this Agreement
shall operate as a waiver thereof, nor 

 
shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any
waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is
signed by the party asserted to have granted such waiver. 
  

	 	26.	Costs and Expenses. 

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

	 	27.	Titles Not to Affect Interpretation. 

 The titles of paragraphs and subparagraphs 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. 
  

	 	28.	Execution in Counterparts. 

This Agreement may be executed in any number of counterparts by facsimile or other written form of communication, each of which shall be
deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. This Agreement shall become binding when one or more counterparts hereof, individually or taken
together, shall bear the signatures of all of the parties reflected hereon as the signatories. 
  

	 	29.	Provisions Separable. 

The provisions of this Agreement are independent of and separable from each other, and 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. 
  

	 	30.	Number and Gender. 

 Words
used herein, regardless of the number and gender specifically used, will be deemed and construed to include any other number, singular or plural, and any other gender, masculine, feminine or neuter, as the context requires. 

 

	 	31.	Survival of Representations, Warranties and Indemnities. 

 Each representation and warranty made or deemed to be made herein or pursuant hereto, and each indemnity provided for hereby, shall survive indefinitely. 

	 	32.	No Recourse. 

 The
Collateral Manager hereby acknowledges and agrees that the Issuer’s obligations hereunder shall be solely the corporate obligations of the Issuer, and the Collateral Manager shall not have any recourse to any of the directors, officers,
employees, shareholders or Affiliates of the Issuer with respect to any expenses, losses, damages, judgments, assessments, costs, demands, charges, claims, liabilities, indemnities or other obligations in connection with any transactions
contemplated hereby. Notwithstanding any other provision of this Agreement, recourse in respect of any obligations of the Issuer hereunder shall be limited to the Collateral applied in accordance with the Priority of Payments and, on the exhaustion
thereof, all claims against the Issuer arising from this Agreement or any transactions contemplated hereby shall be extinguished and shall not thereafter revive. This Section 32 shall survive the termination of this Agreement.

 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
	
	LEHIGH RIVER LLC
		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name:	 	Gerald F. Stahlecker
		 	Title:	 	Executive Vice President

 [Signature Page to Collateral Management Agreement]Collateral Administration Agreement

 Exhibit 10.8 
 COLLATERAL ADMINISTRATION AGREEMENT 
 This COLLATERAL ADMINISTRATION
AGREEMENT, dated as of October 26, 2012 (as the same may be amended from time to time in accordance with the terms hereof (this “Agreement”) is entered into by and among Lehigh River LLC, a limited liability company organized under
the laws of the State of Delaware, as issuer (the “Issuer”), FS Investment Corporation II, a corporation organized under the laws of the State of Maryland, in its capacity as collateral manager under the Collateral Management Agreement
referred to below (in such capacity, together with its successors in such capacity, the “Collateral Manager”) and Virtus Group, LP, a limited partnership organized under the laws of the State of Texas, as collateral administrator (the
“Collateral Administrator”). 
 W I T N E S S E T H: 

WHEREAS, the Issuer and Citibank, N.A., as trustee (the “Trustee”), have entered into an Indenture (the “Indenture”)
dated as of October 26, 2012, pursuant to which the Class A Notes (as defined in the Indenture) were issued; 

WHEREAS, pursuant to the terms of the Indenture, the Issuer pledged certain Collateral Obligations and Eligible Investments (each as
defined in the Indenture and herein, and collectively, the “Assets”) as security for the Class A Notes; 

WHEREAS, the Collateral Manager has entered into a collateral management agreement (the “Collateral Management Agreement”) with
the Issuer, dated as of October 26, 2012, in connection with which the Collateral Manager has agreed to provide certain services to the Issuer with respect to the Assets; 
 WHEREAS, the Issuer wishes to engage the Collateral Administrator to perform on its behalf certain administrative duties of the Issuer with respect to the Assets pursuant to the Indenture; and 

WHEREAS, the Collateral Administrator, on behalf of the Issuer, is prepared to perform certain specified obligations of the Issuer under
the Indenture or of the Collateral Manager under the Indenture, and certain other services as specified herein. 
 NOW,
THEREFORE, in consideration of the mutual covenants contained herein, and other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto agree as follows: 

1. Definitions. Capitalized terms not otherwise defined in this Agreement shall have the meanings set forth in the Indenture.

 2. Powers and Duties of the Collateral Administrator and the Collateral Manager. 

(a) The Collateral Administrator shall act as agent for the Issuer until the earlier of (i) its resignation or removal pursuant to
Section 7 hereof or (ii) the termination of this Agreement pursuant to Section 6 or Section 7 hereof. The Collateral Administrator shall assist the Collateral Manager in connection with monitoring the Collateral Obligations and
Eligible 

 
Investments on an ongoing basis and providing to the Issuer certain reports, schedules and other data which the Issuer is required to prepare and deliver under Section 7.23,
Section 7.24 and Article 10 of the Indenture. The Collateral Administrator’s duties and authority to act as collateral administrator hereunder are limited to the duties and authority specifically provided for in this Agreement and under
the Indenture. The Collateral Administrator shall not be deemed to assume the obligations of the Issuer under the Indenture or of the Collateral Manager under the Collateral Management Agreement or the Indenture. The Collateral Administrator shall
perform those duties and functions assigned to it in the Indenture, comply with all obligations applicable to it under the Indenture and perform its duties hereunder in accordance with the terms of this Agreement and the terms of the Indenture
applicable to it. 
 (b) Promptly following the Closing Date, the Collateral Administrator shall create a Collateral Obligation
and Eligible Investments database. Upon request for specific information in the Collateral Obligation and Eligible Investments database from the Collateral Manager, the Collateral Administrator shall promptly provide such information to the
Collateral Manager. The Collateral Administrator shall update the Collateral Obligation and Eligible Investments database promptly following (i) the sale or disposition of any Collateral Obligation or Eligible Investment and (ii) the
purchase of any Collateral Obligation or Eligible Investment. 
 (c) Not later than the Business Day prior to the day on which
each Monthly Report or Valuation Report is required to be provided by the Issuer to the Trustee pursuant to Section 10.5(a) or Section 10.5(b) of the Indenture, respectively, the Collateral Administrator shall prepare the relevant report
by calculating, using the information contained in the Collateral Obligation and Eligible Investments database created by the Collateral Administrator pursuant to Section 2(b) above, and subject to the Collateral Administrator’s receipt
from the Collateral Manager of information with respect to the Collateral Obligation or Eligible Investment that is not contained in such database and subject further to the provisions of this Section 2, each item required to be stated in such
Monthly Report or Valuation Report (together with Payment Date disbursement instructions) in accordance with the Indenture and provide the results of such calculations to the Collateral Manager so that the Collateral Manager may confirm such
results. Upon approval by the Collateral Manager, the Collateral Administrator shall deliver the Monthly Report or Valuation Report to the Trustee, to be posted to the Trustee’s website in the manner contemplated in the Indenture. 

(d) Upon request of the Collateral Manager in connection with a proposed purchase of a Collateral Obligation pursuant to
Section 12.2 of the Indenture (accompanied by such information concerning the Collateral Obligation to be purchased as may be necessary to make the calculations referred to in this Section 2(d)), the Collateral Administrator shall
calculate each criterion (including in the Reinvestment Criteria and the Coverage Tests or any other calculations contained in Section 12.2 of the Indenture requested by the Collateral Manager) as a condition to such purchase in accordance with
the Indenture and provide the results of such calculations to the Collateral Manager for comparison to the Collateral Manager’s own calculations in determining whether such purchase is permitted by the Indenture. 

(e) Upon notification by the Collateral Manager during each time period as set forth in Section 12.1 of the Indenture of a proposed
disposition of a Defaulted Obligation, Equity Security, Exchanged Equity Security, Withholding Tax Security or Collateral Obligation 

  
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(accompanied by such information as may be necessary to make the calculation referred to in this Section 2(e)), the Collateral Administrator shall calculate each criterion set forth in the
designated subsection of Section 12.2 of the Indenture as a condition to such disposition in accordance with the Indenture and shall provide the results of such calculations to the Collateral Manager. 

(f) The Collateral Administrator shall have no liability for any determination to purchase or sell a Collateral Obligation made by the
Collateral Manager based on the calculations provided by the Collateral Administrator pursuant to Section 2(d) or Section 2(e), as applicable, except to the extent due to the gross negligence, fraud or willful misconduct of the Collateral
Administrator. The Collateral Manager hereby agrees that any determination to purchase or sell a Collateral Obligation made by the Collateral Manager is not based solely upon the calculations of the Collateral Administrator. 

(g) The Collateral Administrator shall assist the Independent certified public accountants in the preparation of those reports required
under Section 10.7 of the Indenture. In the event the firm or firms of Independent certified public accountants appointed by the Issuer for purposes of reviewing and delivering the reports or certificates of such accountants required by the
Indenture requires the Collateral Administrator to agree to the procedures performed by such firm or requires the Collateral Administrator to execute any documents in order to obtain a copy of such reports or certificates, the Issuer hereby directs
the Collateral Administrator to so agree; it being understood and agreed that the Collateral Administrator will deliver such letter of agreement in conclusive reliance on the foregoing direction of the Issuer, and the Collateral Administrator shall
make no inquiry or investigation as to, and shall have no obligation in respect of, the sufficiency, validity or correctness of such procedures. 
 (h) [Reserved]. 
 (i) The Collateral Administrator shall assist the Collateral
Manager in the preparation of such other reports that may be required by the Indenture and that are reasonably requested in writing by the Collateral Manager and agreed to by the Collateral Administrator, which agreement shall not be unreasonably
withheld. 
 (j) [Reserved]. 
 (k) The Collateral Administrator shall promptly forward to the Collateral Manager copies of notices and other writings received by it, in its capacity as Collateral Administrator hereunder, from the
obligor or other Person with respect to any Collateral Obligation or from any Clearing Agency with respect to any Collateral Obligation advising the holders of such obligation of any rights that the holders might have with respect thereto (including
notices of calls and redemptions thereof) as well as all periodic financial reports received from such obligor or other Person with respect to such obligation and Clearing Agencies with respect to such obligor. 

(l) The Collateral Manager reasonably shall assist and cooperate with the Collateral Administrator in connection with the preparation by
the Collateral Administrator of all reports, instructions, the Monthly Reports, the Valuation Reports and statements and certificates 

  
 3 

 
required in connection with the acquisition and disposition of Collateral Obligations, Defaulted Obligations, Withholding Tax Securities, Eligible Investments, Equity Securities and Exchanged
Equity Securities or as otherwise required under the Indenture. Without limiting the generality of the foregoing, the Collateral Manager shall advise the Collateral Administrator in a timely manner of the results of any determinations, designations
and selections made by it as required or permitted under the Indenture and supply the Collateral Administrator with such other information as is in the possession of the Collateral Manager that the Collateral Administrator may from time to time
reasonably request with respect to the Assets and is reasonably needed to complete the reports and certificates required to be prepared by the Collateral Administrator hereunder or reasonably required to permit the Collateral Administrator to
perform its obligations hereunder, including any information that may be reasonably required under the Indenture with respect to or as to the designation of any Collateral Obligation, including but not limited to a Credit Risk Obligation, Credit
Improved Obligation, Current Pay Obligation, Discount Obligation, First Lien Last Out Loan, Defaulted Obligation, Exchange Defaulted Obligation, DIP Loan, Equity Security, Exchanged Equity Security, Withholding Tax Security, Senior Secured Loan,
Senior Secured Note, Second Lien Loan, Senior Unsecured Loan, Subordinated Loan, Substitute Collateral Obligation, CCC Collateral Obligation, Deferrable Obligation, Deferring Obligation, Fixed Rate Collateral Obligation, Bonds, Partial Deferrable
Obligation, Letter of Credit, LIBOR Floor Obligation, Synthetic Security, Participation (and the related selling institution and its rating by each Rating Agency) and Structured Finance Obligation, whether a Specified Amendment or Specified Event
has occurred and the S&P Rating and the Market Value of any Collateral Obligation to the extent required by the Indenture. Nothing herein shall obligate the Collateral Administrator to determine independently the correct characterization,
classification or categorization of any Asset held under the Indenture or the Market Value of any Asset (it being understood that any such characterization, classification, categorization or Market Value shall be based exclusively upon the
determination and notification received by the Collateral Administrator from the Collateral Manager or the Issuer). The Collateral Administrator shall have no obligation to determine whether any Asset meets the definition of “Collateral
Obligation”. The Collateral Manager shall review and verify the contents of the aforesaid reports, instructions, statements and certificates and shall send such reports, instructions, statements and certificates to the Issuer for execution.
Such reports, instructions, statements and certificates after execution by the Issuer or the Collateral Manager, as applicable, will be made available to Holders on the Trustee’s website. 

(m) Not later than two Business Days prior to each Payment Date, the Collateral Administrator shall calculate the Priority of Payments
and provide a written report to the Collateral Manager and the Trustee setting forth all amounts that the Trustee will be required to remit on such Payment Date and such other information required for the Trustee to make such remittances.

 (n) If, in performing its duties under this Agreement, the Collateral Administrator is required to decide between alternative
courses of action or if there are alternative methodologies that can be used in connection with any calculations required to be performed by the Collateral Administrator hereunder, the Collateral Administrator may request written instructions from
the Collateral Manager as to the course of action or methodology to be used by the Collateral Administrator; provided, however, that except to the extent required by the 

  
 4 

 
Indenture or the Collateral Management Agreement, the Collateral Manager shall be under no obligation to provide such instructions. If the Collateral Administrator does not receive such
instructions within two Business Days after it has requested them, it may, but shall be under no duty to, take or refrain from taking such action provided that the Collateral Administrator as promptly as possible notifies the Collateral Manager and
the Issuer which course of action, if any (or refrainment from taking any course of action), it has decided to take. The Collateral Administrator shall act in accordance with instructions received after such two-Business Day period. The Collateral
Administrator shall be entitled to rely on the advice of legal counsel selected with due care and Independent certified public accountants in performing its duties hereunder and shall be deemed to have acted in good faith if it acts in accordance
with such advice, unless such advice is in conflict with this Agreement. Nothing herein shall prevent the Collateral Administrator or any of its Affiliates from engaging in other businesses or from rendering services of any kind to any Person.

 (o) The Collateral Administrator shall provide the Collateral Manager and the Trustee with written notice if, as of any
Measurement Date the percentage equivalent of a fraction, (i) the numerator of which is equal to (1) the Aggregate Principal Amount of all Collateral Obligations plus (2) the aggregate Market Value of all Defaulted Obligations as of
such date and (ii) the denominator of which is equal to the Aggregate Outstanding Amount of the Class A Notes, shall fail to equal or exceed 147.07%. 
 3. Compensation. Subject to Section 13, the Issuer agrees to pay, and the Collateral Administrator shall be entitled to receive, as compensation for and reimbursement of expenses in connection
with the Collateral Administrator’s performance of the duties called for herein, the amounts set forth in a separate fee letter among the Collateral Manager, the Trustee and the Collateral Administrator. In accordance with Section 13, all
amounts payable under this Section 3 shall be payable only in accordance with, and subject to, the Priority of Payments as set forth in the Indenture. 
 4. Limitation of Responsibility of the Collateral Administrator. (a) The Collateral Administrator will have no responsibility under this Agreement other than to render the services called for
hereunder in good faith and without willful misfeasance, gross negligence or reckless disregard of its duties hereunder. The Collateral Administrator shall incur no liability to anyone in acting upon, and may rely conclusively upon, any signature,
instrument, statement, notice, resolution, request, direction, consent, order, certificate, report, opinion, bond or other document or paper reasonably believed by it to be genuine and reasonably believed by it to be signed by the proper party or
parties. Subject to Section 12, the Collateral Administrator may exercise any of its rights or powers hereunder or perform any of its duties hereunder either directly or by or through agents or attorneys, and the Collateral Administrator shall
not be responsible for any misconduct or negligence on the part of any agent or attorney appointed hereunder with due care by it. The Collateral Administrator shall be entitled to the same rights, protections and immunities that are afforded to the
Trustee under Article 6 of the Indenture. Neither the Collateral Administrator nor any of its Affiliates, directors, officers, shareholders, members, agents or employees will be liable to the Collateral Manager, the Issuer or others, except by
reason of acts or omissions constituting bad faith, willful misfeasance, gross negligence or reckless disregard of the Collateral Administrator’s duties hereunder. Anything in this Agreement notwithstanding, in no event shall the Collateral
Administrator be liable for special, 

  
 5 

 
punitive, indirect or consequential damage of any kind whatsoever (including but not limited to lost profits), even if the Collateral Administrator has been advised of such loss or damage and
regardless of the form of action under or pursuant to this Agreement, its duties or obligations hereunder or arising out of or relating to the subject matter hereof. The Collateral Administrator shall in no event have any liability for the actions
or omissions of the Issuer, the Collateral Manager or any other Person, and shall have no liability for any inaccuracy or error in any duty performed by it that results from or is caused by inaccurate, untimely or incomplete information or data
received by it from the Issuer, the Collateral Manager or another Person except to the extent that such inaccuracies or errors are caused by the Collateral Administrator’s own bad faith, willful misfeasance, gross negligence or reckless
disregard of its duties hereunder. The Collateral Administrator shall not be liable for failing to perform or delay in performing its specified duties hereunder which results from or is caused by a failure or delay on the part of the Issuer, the
Collateral Manager or another Person in furnishing necessary, timely and accurate information to the Collateral Administrator except to the extent that any failure or delay is caused by the Collateral Administrator’s own criminal conduct,
fraud, bad faith, willful misfeasance, gross negligence or reckless disregard of its duties hereunder. The duties and obligations of the Collateral Administrator and its employees or agents shall be determined solely by the express provisions of
this Agreement and they shall not be under any obligation or duty except for the performance of such duties and obligations as are specifically set forth herein, and no implied covenants shall be read into this Agreement against them. For purposes
of monitoring changes in ratings, the Collateral Administrator shall be entitled to use and rely (in good faith) exclusively upon one or more reputable electronic financial information reporting services, and shall have no liability for any
inaccuracies in the information reported by, or other errors or omissions of, any such services. 
 (b) To the extent of any
ambiguity in the interpretation of any definition or term contained in the Indenture, the Collateral Administrator shall request direction from the Collateral Manager as to the interpretation used, and the Collateral Administrator shall follow such
direction, and together with the Trustee, shall be entitled to conclusively rely thereon without any responsibility or liability therefor. 
 (c) The Issuer shall reimburse, indemnify and hold harmless the Collateral Administrator, and its Affiliates, directors, officers, shareholders, members, agents and employees with respect to all
out-of-pocket expenses, losses, damages, liabilities, demands, charges and claims of any nature (including the reasonable fees and expenses of counsel and other experts) in connection with or arising out of this Agreement and the Indenture, other
than any such expenses, losses, damages, liabilities, demands, charges or claims incurred by reason of the bad faith, willful misfeasance, gross negligence or reckless disregard by the Collateral Administrator of its duties hereunder. 

(d) The Collateral Administrator shall reimburse, indemnify and hold harmless the Collateral Manager and the Issuer and their respective
Affiliates, directors, officers, shareholders, members, agents and employees with respect to all expenses, losses, damages, liabilities, demands, charges and claims of any nature (including the reasonable fees and expenses of counsel and other
experts) in respect of or arising out of any acts or omissions performed or omitted, as the case may be, by the Collateral Administrator, its Affiliates, directors, officers, shareholders, members, agents or employees hereunder or in connection with
the Indenture made in bad faith or constituting willful misfeasance, gross negligence or reckless disregard of its duties hereunder. 

  
 6 

 (e) The Collateral Manager will have no responsibility under this Agreement other than to
render the services called for hereunder or in connection with the Indenture in good faith and without willful misfeasance, gross negligence or reckless disregard of its duties hereunder. The Collateral Manager will not be liable to the Collateral
Administrator, the Issuer or others, except by reason of acts or omissions constituting bad faith, willful misfeasance, gross negligence or reckless disregard of the Collateral Manager’s duties hereunder. The Collateral Manager shall reimburse,
indemnify and hold harmless the Collateral Administrator and its Affiliates, directors, officers, shareholders, members, agents and employees with respect to all expenses, losses, damages, liabilities, demands, charges and claims of any nature
(including the reasonable fees and expenses of counsel and other experts) in respect of or arising out of any acts or omissions performed or omitted, as the case may be, by the Collateral Manager, its Affiliates, directors, officers, shareholders,
members, agents or employees hereunder made in bad faith or constituting willful misfeasance, gross negligence or reckless disregard of its duties hereunder or under the Indenture. Anything in this Agreement notwithstanding, in no event shall the
Collateral Manager be liable for special, indirect or consequential damage of any kind whatsoever (including but not limited to lost profits), even if Collateral Manager has been advised of such loss or damage and regardless of the form of action.

 (f) In connection with the aforesaid indemnification provisions, upon reasonable prior notice, any indemnified party will
afford to the applicable indemnifying party the right, in its sole discretion and at its sole expense, to assume the defense of any 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 party assumes the defense of such claim, it shall not be liable for any fees and expenses of counsel for any indemnified party incurred thereafter in
connection with such claim except that if such indemnified party reasonably determines that counsel designated by the indemnifying party has a conflict of interest, such indemnifying party shall pay the reasonable fees and disbursements of one
counsel (in addition to any local counsel) separate from its own counsel for all indemnified parties 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; and provided, further, that prior to entering into any final settlement or compromise, such indemnifying party shall seek the consent of the indemnified party 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 party as to the terms of settlement or compromise. If an indemnified party does not consent to the
settlement or compromise within a reasonable time under the circumstances, the indemnifying party shall not thereafter be obligated to indemnify the indemnified party for any amount in excess of such proposed settlement or compromise. 

5. No Joint Venture. Nothing contained in this Agreement (i) shall constitute the Collateral Administrator, the Issuer and
the Collateral Manager as members of any partnership, joint venture, association, syndicate, unincorporated business or other separate entity, (ii) shall be construed to impose any liability as such on any of them or (iii) shall be deemed
to confer on any of them any express, implied or apparent authority to incur any obligation or liability on behalf of the others. 

  
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 6. Term. This Agreement shall continue in effect so long as the Indenture remains in
effect with respect to the Notes, unless this Agreement has been previously terminated in accordance with Section 7 hereof. Notwithstanding the foregoing, the indemnification obligations of all parties under Section 4 hereof shall survive
the termination of this Agreement or release of any party hereto with respect to matters occurring prior to such termination or release. 
 7. Termination; Resignation and Appointment of Successor. 
 (a) This
Agreement may be terminated without cause by any party hereto upon not less than 90 days’ prior written notice to each other party hereto. 
 (b) At the option of the Collateral Manager or the Issuer, this Agreement shall be terminated upon ten days’ written notice of termination from the Collateral Manager or the Issuer to the Collateral
Administrator if any of the following events shall occur: 
 (i) The Collateral Administrator shall default in
the performance of any of its material duties under this Agreement and shall not cure such default within thirty days (or, if such default cannot be cured in such time, shall not give within thirty days such assurance of cure as shall be reasonably
satisfactory to the Collateral Manager or the Issuer); 
 (ii) The Collateral Administrator shall be dissolved
(other than pursuant to a consolidation, amalgamation or merger) or shall have a resolution passed for its winding up, official management or liquidation (other than pursuant to a consolidation, amalgamation or merger); 

(iii) A court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Collateral
Administrator in any involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appoint a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Collateral
Administrator or for any substantial part of its property, or order the winding-up or liquidation of its affairs; or 
 (iv) The Collateral Administrator shall commence a voluntary case under applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or shall consent to the entry of an order for
relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar official) of the Collateral Administrator or for any
substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due. 

  
 8 

 If any of the events specified in clauses (ii), (iii) or (iv) of this
Section 7(b) shall occur, the Collateral Administrator shall give written notice thereof to the Collateral Manager and the Issuer within one Business Day after the happening of such event. 

(c) Upon receiving any notice of resignation of the Collateral Administrator or removal by the Issuer, the Issuer shall promptly appoint
a successor collateral administrator by written instrument, in duplicate, executed by an Authorized Officer of the Issuer, one copy of which shall be delivered to the Collateral Administrator so resigning or removed and one copy to the successor
collateral administrator. No resignation or removal of the Collateral Administrator shall be effective until a successor collateral administrator shall have been appointed and shall have accepted such appointment hereunder in writing. If the Issuer
shall fail to appoint a successor collateral administrator within 30 days after such notice of resignation, then the Collateral Administrator may petition any court of competent jurisdiction for the appointment of a successor collateral
administrator. Notwithstanding the foregoing, the Collateral Administrator may resign its duties hereunder without any requirement that a successor collateral administrator be obligated hereunder and without any liability for further performance of
any duties hereunder upon at least 90 days’ prior written notice to the other parties hereto upon the occurrence of any of the following events and the failure to cure such event within such 90 day notice period: (i) failure of the Issuer
to pay any of the amounts specified in Section 3 within 90 days after such amount is due pursuant to Section 3 hereof or (ii) failure of the Collateral Manager or the Issuer to provide any indemnity payment or expense reimbursement to
the Collateral Administrator required under Section 4 hereof within 90 days of the receipt by the Collateral Manager or the Issuer of a written request for such payment or reimbursement. 

8. Representations and Warranties. 
 (a) The Issuer hereby represents and warrants to the Collateral Administrator and the Collateral Manager as follows: 

(i) The Issuer has been duly formed and is validly existing and in good standing under the laws of the State of Delaware
and has the full power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary action to authorize this Agreement on the terms and conditions hereof, the execution, delivery and
performance of this Agreement and the performance of all obligations imposed upon it hereunder. No consent of any other person including, without limitation, managers, members and creditors of the Issuer, and no license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained or made by the Issuer in connection with this Agreement or the execution, delivery, performance,
validity or enforceability of this Agreement and the obligations imposed upon it hereunder. This Agreement constitutes, and each instrument or document required hereunder, when executed and delivered by the Issuer hereunder, will constitute, the
legally valid and binding obligations of the Issuer enforceable against the Issuer in accordance with their terms subject, as to enforcement, (a) to 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 Issuer and (b) to general equitable principles (whether enforceability of such principles is considered
in a proceeding at law or in equity). 

  
 9 

 (ii) The execution, delivery and performance by the Issuer of this
Agreement, the Issuer’s obligations hereunder and the documents and instruments required hereunder will not violate any provision of any existing law or regulation binding on the Issuer, or any order, judgment, award or decree of any court,
arbitrator or governmental authority binding on the Issuer, or the governing instruments of, or any securities issued by, the Issuer or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Issuer is
a party or by which the Issuer or any of its assets may be bound, the violation of which would have a material adverse effect on the business, operations, assets or financial condition of the Issuer and will not result in, or require, the creation
or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 

(b) The Collateral Manager hereby represents and warrants to the Collateral Administrator and the Issuer as follows: 

(i) The Collateral Manager has been duly incorporated and is validly existing and in good standing under the laws of the
State of Maryland as a corporation and has the full power and authority to execute, deliver and perform this Agreement and all obligations required hereunder and has taken all necessary action to authorize this Agreement on the terms and conditions
hereof, the execution, delivery and performance of this Agreement and the performance of all obligations imposed upon it hereunder. No consent of any other person including, without limitation, shareholders and creditors of the Collateral Manager,
and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the Collateral Manager in connection with this Agreement or the
execution, delivery, performance, validity or enforceability of this Agreement and the obligations imposed upon it hereunder. This Agreement constitutes, and each instrument or document required hereunder, when executed and delivered by the
Collateral Manager hereunder, will constitute, the legally valid and binding obligations of the Collateral Manager enforceable against the Collateral Manager in accordance with their terms subject, as to enforcement, (a) to 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 Collateral Manager and
(b) to general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity). 
 (ii) The execution, delivery and performance of this Agreement, the Collateral Manager’s obligations hereunder and the documents and instruments required hereunder will not violate any provision of
any existing law or regulation binding on the Collateral Manager, or any order, judgment, award or decree of any court, arbitrator or governmental authority binding on the Collateral Manager, or the governing instruments of, or any securities issued
by, the Collateral Manager or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Collateral 

  
 10 

 
Manager is a party or by which the Collateral Manager or any of its assets may be bound, the violation of which would have a material adverse effect on the business, operations, assets or
financial condition of the Collateral Manager and will not result in, or require, the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other
agreement, instrument or undertaking. 
 (c) The Collateral Administrator hereby represents and warrants to the Collateral
Manager and the Issuer as follows: 
 (i) The Collateral Administrator is a limited partnership duly organized
and validly existing under the laws of the State of Texas and has full power and authority to execute and deliver this Agreement and perform all obligations required hereunder and has taken all necessary action to authorize this Agreement on the
terms and conditions hereof, the execution and delivery of this Agreement and the performance of all obligations required hereunder. No consent of any other person including, without limitation, partners and creditors of the Collateral
Administrator, and no license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required by the Collateral Administrator in connection with this
Agreement or the execution, delivery, performance, validity or enforceability of this Agreement and the obligations imposed upon it hereunder. This Agreement constitutes, and each instrument and document required hereunder, when executed and
delivered by the Collateral Administrator hereunder, will constitute, the legally valid and binding obligations of the Collateral Administrator enforceable against the Collateral Administrator in accordance with their terms subject, as to
enforcement, (a) to 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 Collateral Administrator and (b) to general equitable principles (whether enforceability of such principles is considered in a proceeding at law or in equity). 

(ii) The execution, delivery and performance of this Agreement, the Collateral Administrator’s obligations hereunder
and the documents and instruments required hereunder will not violate any provision of any existing law or regulation binding on the Collateral Administrator, or any order, judgment, award or decree of any court, arbitrator or governmental authority
binding on the Collateral Administrator, or the organizational documents of the Collateral Administrator or of any mortgage, indenture, lease, contract or other agreement, instrument or undertaking to which the Collateral Administrator is a party or
by which the Collateral Administrator or any of its assets may be bound, the violation of which would have a material adverse effect on the business, operations, assets or financial condition of the Collateral Administrator and will not result in,
or require, the creation or imposition of any lien on any of its property, assets or revenues pursuant to the provisions of any such mortgage, indenture, lease, contract or other agreement, instrument or undertaking. 

  
 11 

 9. Amendments. This Agreement may not be amended, changed, modified or terminated
(except as otherwise expressly provided herein) except by the Collateral Manager, the Issuer and the Collateral Administrator in writing. 
 10. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND THIS AGREEMENT AND ANY MATTERS ARISING OUT OF OR RELATING IN ANY WAY WHATSOEVER TO THIS AGREEMENT (WHETHER IN
CONTRACT, TORT OR OTHERWISE) SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK. 
 11. Notices. All notices,
requests, directions and other communications permitted or required hereunder shall be in writing and shall be deemed to have been duly given (i) when delivered personally, (ii) when transmitted by facsimile or other electronic means of
communication (it being agreed that such notice shall be effective at the time that a transmission report confirming transmission is generated by the sender’s facsimile machine) or (iii) when mailed, first class postage prepaid, or sent by
overnight courier service, to the parties at their respective addresses set forth below (or to such other address as a party may have specified by written notice given to the other parties pursuant to this provision. 

If to the Collateral Administrator, to: 
 Virtus Group, LP 
 5400 Westheimer Court 

Suite 760 

Houston, Texas 77056 
 Telecopy: (866) 816-3203 
 If to the Issuer, to: 

c/o FS Investment Corporation II 
 Cira Centre 
 2929 Arch Street, Suite 675 

Philadelphia, Pennsylvania 19104 
 Facsimile: (215) 222-4649 
 Attention: Gerald F. Stahlecker 

If to the Collateral Manager, to: 
 FS Investment Corporation II 
 Cira Centre 

2929 Arch Street, Suite 675 
 Philadelphia, Pennsylvania 19104 
 Facsimile: (215) 222-4649 

Attention: Gerald F. Stahlecker 
 12. Successors and Assigns. This Agreement shall inure to the benefit of, and be binding upon, the successors and assigns of each of the Collateral Manager, the Issuer and the Collateral
Administrator (including by merger or consolidation); provided, however, that the 

  
 12 

 
Collateral Administrator may not assign its rights and obligations hereunder without the prior written consent of the Collateral Manager and the Issuer, except that the Collateral Administrator
may delegate to, employ as agent, or otherwise cause any duty or obligation hereunder to be performed by, any Affiliate of the Collateral Administrator or its successors without the prior written consent of the Collateral Manager and the Issuer,
provided that the Collateral Administrator shall remain directly liable to the Issuer for the performance of its duties hereunder. 
 13. Bankruptcy Non-Petition and Limited Recourse. Notwithstanding any other provision of this Agreement, the Collateral Administrator and the Collateral Manager may not, prior to the date which is
one year and one day (or, if longer, the then applicable preference period plus one day) after the payment in full of all the Class A Notes, institute against, or join any other Person in instituting against, the Issuer, any bankruptcy,
reorganization, arrangement, insolvency, moratorium or liquidation proceedings, or other proceedings under United States federal or state bankruptcy laws, or any similar laws; provided, however, that nothing in this agreement by the Collateral
Manager, the Collateral Administrator or the Issuer (i) shall preclude, or be deemed to estop, the Collateral Manager or the Collateral Administrator (A) from taking any action prior to the expiration of the aforementioned one year plus
one day period (or if longer, the applicable preference period plus one day) in (x) any case or proceeding voluntarily filed or commenced by the Issuer or (y) any involuntary insolvency proceeding filed or commenced against the Issuer by a
Person other than the Collateral Manager or the Collateral Administrator or any of their respective Affiliates or (B) from commencing against the Issuer or any properties of the Issuer, any legal action which is not a bankruptcy,
reorganization, arrangement, insolvency, moratorium or liquidation proceeding. The Issuer’s obligations hereunder will be solely the corporate obligations of the Issuer, and the Collateral Administrator and the Collateral Manager will not have
any recourse to any of the directors, officers, employees, shareholders, members, governors or Affiliates of the Issuer with respect to any claims, losses, damages, liabilities, indemnities or other obligations in connection with any transactions
contemplated hereby. The obligations of the Issuer hereunder shall be limited to the net proceeds of the Assets (if any), payable solely in accordance with the order specified in the Priority of Payments under the Indenture, and following
realization of the Assets and the application of their proceeds in accordance with the Priority of Payments under the Indenture, any outstanding obligations of the Issuer hereunder, and any claims in respect thereof, shall be extinguished and shall
not thereafter revive. The provisions of this Section 13 shall survive the termination of this Agreement. 
 14.
Counterparts. This Agreement may be executed in any number of counterparts, including by facsimile or other electronic means of communication, each of which shall be deemed to be an original, but all of which together shall constitute but one
and the same instrument. Delivery of an executed counterpart of this Agreement by e-mail (PDF) or telecopy shall be as effective as delivery of a manually executed counterpart of this Agreement. 

15. Conflict with the Indenture. If this Agreement shall require that any action be taken with respect to any matter and the
Indenture shall require that, a different action be taken with respect to such matter, and such actions shall be mutually exclusive, or if this Agreement should otherwise conflict with the Indenture, the Indenture shall govern. 

  
 13 

 16. Assignment of Issuer’s Rights. The parties hereto hereby acknowledge the
Issuer’s Grant pursuant to the Indenture of its right, title and interest in, to and under this Agreement. 
 17.
Jurisdiction. The parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any New York State or Federal court sitting in the Borough of Manhattan in The City of New York in any action or proceeding arising out of or
relating to this Agreement, and the parties hereto hereby irrevocably agree that all claims in respect of such action or proceeding may be heard and determined in such New York State or Federal court. The parties hereto hereby irrevocably waive, to
the fullest extent that they may legally do so, the defense of an inconvenient forum to the maintenance of such action or proceeding. The parties hereto hereby agree that a final judgment in any such action or proceeding shall be conclusive and may
be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
 18. Waiver of Jury
Trial Right. EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT THAT IT MAY HAVE TO A TRIAL BY JURY (BUT NO OTHER JUDICIAL REMEDIES) IN RESPECT OF ANY PROCEEDING ARISING OUT OF OR RELATING
TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY. Each party hereby (i) certifies that no representative, agent or attorney of the other has represented, expressly or otherwise, that the other would not, in the event of such
proceedings, seek to enforce the foregoing waiver and (ii) acknowledges that it has been induced to enter into this Agreement by, among other things, the mutual waivers and certifications in this Section 18. 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Collateral Administration Agreement to be executed
effective as of the day first above written. 
  

			
	LEHIGH RIVER LLC
	the Issuer
		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name: Gerald F. Stahlecker
		 	Title    Executive Vice President
	
	 FS INVESTMENT CORPORATION II
 the Collateral Manager

		
	By:	 	 /s/ Gerald F. Stahlecker

		 	Name: Gerald F. Stahlecker
		 	Title    Executive Vice President
	
	 VIRTUS GROUP, LP

the Collateral Administrator

		
	By:	 	 /s/ Joseph U. Elston

		 	Name: Joseph U. Elston
		 	Title    Partner

 Collateral Administration Agreement Signature Page

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